Yinson OVERVIEW Holdings Berhad SECTION 1

46 Annual Report 2020

OUR CAPITALS

48 How Yinson generates Value 50 Financial Capital 63 Manufactured Capital 69 Organisational Capital 84 Human Capital 102 Social & Relationships Capital 120 Natural Capital

47 ACHIEVING SUSTAINABLE GROWTH

Our ability to bring greater value to our stakeholders motivates us to perform our very best, because we believe that this is the key to sustainable growth.

We frame the value that we generate for our stakeholders through six capitals. Guided by our Vision, Mission and Core Values, we strive to manage our capitals in a way that achieves the desired outputs and outcomes for our stakeholders. Yinson SECTION 4 OUR CAPITALS Annual Holdings Berhad Report 2020

HOW YINSON GENERATES VALUE

To be a global energy solutions provider that is known for being reliable, open, adaptable, decisive and Passionately delivering solutions RELIABLE OPEN ADAPTABLE DECISIVE SUSTAINABLE VISION sustainable MISSION powerful CORE VALUES

FINANCIAL outputs business divisionS (pG 12) • Equity SHARED outCOMES • Loans and borrowings FINANCIAL • Cash OFFSHORE PRODUCTION RENEWABLES OFFSHORE MARINE • Stable dividend payouts Achievement of • Cash flow • Consistent operating cash flows short, medium and • Healthy balance sheet Business continuity long-term • High return on equity divisional goals MANUFACTURED GROUP STRATEGY (PG 30) FINANCIAL • Securing projects (pg 31) The pool • Building assets of available • Operating assets Professional and Design, construct, Strong local Disciplined MANUFACTURED funds skilled project own and operate presence in business • Projects secured • Delivery and operations of key assets A workforce that is management model operating and financial Provision of MANUFACTURED • Energy production (oil, gas, solar) empowered by our ORGANISATIONAL teams countries management affordable Physical materials Core Values, and infrastructure Invest resources into: energy worldwide R.O.A.D.S • Corporate governance (“CG”) Securing Good Excellent Long-term • Organisational structure ORGANISATIONAL opportunities with counterparties track record in contracts and • Business systems and • Good governance innovative and cost operations and robust contractual • Robust organisational structure processes Improvement in the effective solutions maintenance terms • Continuous business systems and Continued value • Company culture and quality of life and ORGANISATIONAL communication processes improvements generation Governance, systems environment in the • Strong company culture and for all our and processes communities where (pG 45) communication stakeholders materiality matters we operate capitals HUMAN

HUMAN INPUTS Invest resources into: ECONOMIC SOCIAL GOVERNANCE Employees and crew • Recruitment and retention HUMAN • Work-life balance • High quality recruitment and • Localisation retention outcomes

VALUE CREATION PROCESS CREATION VALUE (PG 42) • Digital Human Resource (“HR”) UNITED NATIONS’ SDGs • Work-life balance (pG 102) • Skilled local workforce Stakeholders technologies • Diversified and inclusive workplace SOCIAL & • Diversity and inclusion • Good health and safety records RELATIONSHIPS • Health and safety Employees Investors and shareholders Interactions with SDG 4 SDG 7 SDG 8 SDG 14 our stakeholders Quality Education Affordable and Clean Energy Decent Work and Economic Growth Life Below Water

NATURAL Social & Relationships Crew Industry Environmental • Invest resources into engaging SOCIAL & RELATIONSHIPS resources Five core pillars of our business (pG 132) with all stakeholder groups • Long-term relationships built on trust used in our to build trust and long-term Clients Local communities processes relationships risk, Business project compliance financing operations Development execution and legal Vendors and suppliers Bankers and lenders NATURAL NATURAL • Air • Lower environmental impacts arising Governments and • Energy from carbon emissions, energy, Partners regulatory bodies • Water Underpinned by pollution, water, waste and materials • Materials External environment, risk and opportunities (pg 36)

48 49 Yinson Holdings OUR CAPITALS Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

FINANCIAL CAPITAL

Operating in a capital-intensive industry, Yinson seeks to allocate our Financial Capital efficiently to maximise the return on capital. Our sources of capital include contributions by our equity shareholders and perpetual securities holders, loans and borrowings from financial institutions, cash held as well as cash flow generated from operating activities. The key financial metrics described in this chapter allows us to measure our effectiveness in creating value to our stakeholders.

Yinson’s strategy for managing Financial Capital

Prioritise long- Velocitise and Build strong local Enlarge territory Build long-term term business realise project knowledge and and increase partnerships sustainability value through experience impact with corporate strong teamwork business partners, and cross border lenders and integration investors

LONG-TERM, STABLE CASH FLOWS

Financing is one of the five core pillars through which Yinson’s business framework and strategy are outlined, as illustrated in this report’s MD&A. The core pillars operate interdependently, with the performance of each core pillar inextricably linked with the performance of the other four.

Yinson’s five core pillars (pg 132)

The function of the Financing pillar is to deliver long-term, stable cashflows for the Group. This enables the other core pillars to function well and safeguards the sustainability of our business, allowing Yinson to continue delivering value to our stakeholders for many years to come.

Yinson has come a long way since our entry into the FPSO market in 2011 and is acutely aware of the importance of ensuring long-term business sustainability. It is our mandate to only undertake projects that provide good overall returns to our shareholders, and each and every element of our projects from the beginning to end is thoroughly evaluated at the onset to safeguard the longevity of the Group.

With strong teamwork and cross border integration, we aim to enhance the performance of our projects, thereby unlocking greater project value. We believe that building a local team in the locations where we operate whilst leveraging off the strength and experience of the larger global team allows us to make stronger decisions at every level, thus maximising value for all stakeholders. It was the strong performance of our projects teams producing excellent operational results, coupled with the great efforts of the global corporate finance team that brought about the successful refinancing of FPSO JAK, thereby velocitising our capital invested and increasing the overall returns of the project.

Organisational structure (pg 73)

50 Annual Report 2020

Closely related to this is our strategy of building strong local knowledge and experience, particularly relating to matters such as tax finance and ESG matters. Having a multinational footprint means that Yinson will need to consistently abide by various rules and regulations.

Our financial strategies synergise with our Group-wide ESG performance. This is highlighted through our current engagements with various ESG rating providers to improve our ESG profile and sustainability-linked financing (“SLF”) opportunities. To better align our initiatives, we have revised our Sustainability Policy, as well as undertaken a new materiality assessment with our stakeholders to better pinpoint initiatives. This has led to the identification of material topics targeted by the Group .

Our teams are constantly brainstorming and evaluating new approaches and opportunities of raising financial capital, to venture into new territories, collaborate with new institutions, with the purpose of increasing our growth potential and impact across the globe. Our efforts to venture into new territories and increasing impact is further highlighted as Yinson was selected to participate in a RM200 million SLF with HSBC, which upon completion will provide an improved pricing upon achieving agreed sustainability performance targets.

Materiality (pg 45), Sustainability-linked financing (pg 53), Strengthen sustainability governance and reporting (pg 71)

As our Group grows, it is vital for us to continue to build and maintain strong, long-term relationships with our banking networks, capital market investors, shareholders and corporate partners. We also seek to establish close partnerships with local partners who invest alongside with us on our projects, as with how we have done in our current projects.

Bankers and lenders (pg 117), Partners (pg 119), MD&A (pg 128)

Equity shareholders and perpetual securities holders

Since 2011, Yinson has successfully raised financial capital through both equity and perpetual securities markets 12 times. Along with the success of these capital transactions, our deals have also earned us several accolades throughout the years, including awards from IFN, IFR, Alpha Southeast Asia and Asset Asia.

2011 2012 2013 2014 2015 2017 2018 2019

1 2 4 6 7 9 10 11 Private Rights Private Rights Private Perpetual Sukuk Perpetual Placement Issue Placement Issue Placement Securities Mudharabah Securities RM11.3 RM85 RM56.5 RM568 RM169.8 (NC5) (NC15) (NC5) million million million million million USD100 RM950 USD90 million million million 8 3 5 Perpetual 12 Private Private Securities Placement Placement (Private Perpetual RM20.4 RM106.6 Placement) Securities million million (NC5) (NC5) USD100 USD30 million million

51 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

Equity shareholders Yinson’s shares are listed on the Main Market of the Bursa Malaysia Securities Berhad (KLSE:YINSON). The top three shareholders of the Company are the family of Yinson’s founder and Group Executive Chairman, Malaysia’s Employees Provident Fund (“EPF”), and Kumpulan Wang Persaraan (Diperbadankan). The top three shareholders of Yinson own approximately 54.07% of stock collectively.

Shareholder Stake Lim Han Weng and family 26.34% EPF 17.48% Kumpulan Wang Persaraan (Diperbadankan) 10.25%

Total 54.07% (According to the Company’s Register of Substantial Shareholders as at 6 May 2020)

The founding Lim family remains the largest shareholder, with 26.34% ownership. The Lim family has subscribed to all rights issues raised by Yinson to date. Currently, the Chief Investment Officer of EPF resides on Yinson’s Board. In 2015, EPF fully subscribed to Yinson’s private placement of RM169.8 million.

Perpetual securities holders Yinson raises external funding to carry out its business activities through a variety of sources. Since 2015, Yinson has issued perpetual securities to raise long-term funding to meet the capital expenditure needs of our projects. This has allowed us to raise a separate class of equity without taking on additional debt onto our balance sheet. The unique characteristics of the perpetual securities lend its support towards lowering the Group’s gearing levels while buffering equity base and extending financing maturities.

lOANS AND Borrowings

Total loans and borrowings (RM’000)

FYE 2016 1,654,151

FYE 2017 3,393,173

FYE 2018 3,010,158

FYE 2019 3,149,730

FYE 2020 3,830,403

Loans and borrowings of the Group have been driven according to project execution needs. Given the capital- intensive nature of our business, it is essential that our projects are bankable on its terms and conditions and supported by financial institutions. Project financing loans are meticulously structured to ensure smooth disbursement during project execution, tie-in of repayment sources, sustainability of working capital, manageable leverage and securitised assets – all to safeguard the interests of our shareholders and lenders.

The loans and borrowings position of the Group experienced significant growth as a result of the successful execution of FPSO JAK, which was completed in FYE 2018. Growth in loans and borrowings during the current financial year of 21.6% to RM3,830.40 million is mainly attributed to the execution of the FPSO Helang project and preparatory funding drawn for the FPSO Anna Nery project.

52 Annual Report 2020

Our loans and borrowings position in the coming three years is expected to increase further due to the drawdown of a refinancing loan for FPSO JAK in Q1 FYE 2021 and project financing to be undertaken for the FPSO Anna Nery project in Brazil and other potential projects.

Refinancing existing project financing

An excellent illustration of the effectiveness of our financing strategy is the USD800 million refinancing loan agreement signed with 13 local and global banks, to refinance the existing loan on FPSO JAK in November 2019. The refinanced loan allows Yinson to enjoy lower interest rates whilst velocitising our future cashflows to be invested into other projects. The deal was well received by the financial community and was oversubscribed by over 45%. The following banks participated in the refinancing:

• CIMB Bank Berhad • Clifford Capital Pte. Ltd. • Crédit Industriel Et Commercial • DBS Bank Ltd. • Korea Development Bank • Maybank Investment Bank Berhad • MUFG Bank, Ltd. • Natixis, Singapore Branch • Oversea-Chinese Banking Corporation Limited • Societe Generale, London Branch • Sumitomo Mitsui Banking Corporation • Standard Chartered Bank (Singapore) Limited • United Overseas Bank Limited

Of the 13 banks participating in the refinancing exercise, seven banks were new capital providers to Yinson. This is a heartening result of Yinson’s efforts to widen its pool of capital providers and network. The loan was fully drawn down on 14 April 2020, with a tenure of 12 years.

Engaging with Export Credit Agencies (“ECAs”)

Additionally, to extend our reach to the available capital in the markets, we are strengthening our relationships with ECAs to support our project financing activities. As part of our financing strategy for our Brazilian FPSO projects, Yinson is in dialogue with several European and Asian ECAs to support the project finance (PF) loans. If successful, these ECAs will be able to provide guarantees in support of the PF loans, thereby providing greater liquidity for the project with increased appetite from the commercial lenders.

Sustainability-linked financing

Sustainability is one of Yinson’s Core Values, and an important value driver for all our stakeholders. We have focused on improving our ESG performance over the years, with the success of our efforts evidenced by our acceptance into the FTSE4Good index, and improvements in our sustainability ratings.

Strengthen sustainability governance and reporting (pg 71)

Adopting SLF as a strategy in raising capital is in line with our focus on sustainability, as it encourages us to strengthen our ESG practices, leading to greater value for our stakeholders and a more sustainable future for everyone.

53 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

In November 2019, Yinson was selected by HSBC Amanah to be an early adopter of Malaysia’s first SLF with a RM200 million revolving credit facility granted to Yinson. This tiered pricing product feature allows Yinson to receive a preferential financing rate of the facility upon meeting pre-agreed targets related to our ESG performance. Amongst indicators considered are the carbon intensity of our operations, reduction in waste produced, increased diversity and improvements in our overall ESG performance ratings.

Cash and LIQUID investments

Cash and liquid investments (RM’000)

FYE 2016 493,103

FYE 2017 661,218

FYE 2018 717,021

FYE 2019 1,289,505

FYE 2020 1,464,952

Yinson maintains a healthy cash and liquid investments balance of RM1.46 billion. The cash held is sufficient to meet business operational needs and support our project development activities. Our strategy for managing liquidity includes: • Maintaining an appropriate mix of high-quality liquid investments and adequate cash buffers to meet unexpected cash outflows • Maintaining cash flow projections to match the allocation of long-term financial capital with project capital expenditure needs • Conducting regular stress testing to assess cash flow vulnerability under stressed situations and deploying the necessary action plans.

Free and available cash

Free and available cash (RM’000)

FYE 2016 210,969

FYE 2017 504,581

FYE 2018 291,295

FYE 2019 723,509

FYE 2020 886,358

The Group’s free and available cash presents a different perspective of our liquidity for our various business endeavours. This is quantified after isolating certain sources that have been earmarked to service loans and borrowings’ obligations, and its utilisation is subject to approvals by lenders in accordance to the financing agreements.

A free and available cash position of RM886.36 million as at 31 January 2020 provides good support and flexibility for the Group to excel beyond its existing business boundaries.

54 Annual Report 2020

Net cash flows generated FROM/(USED IN) OPERATING activities

Net cash flows generated from/(used in) operating activities (RM’000)

FYE 2016 98,188

FYE 2017 (54,296)

FYE 2018 497,186

FYE 2019 647,233

FYE 2020 917,426

The Group’s business model of earning stable recurring income from projects is evidenced by the growth of our cash flows from operations. At Yinson, the majority of cash flows generated and utilised are denominated in USD. As a result, Yinson enjoys a significant natural hedge on its currency risk which effectively minimises the Group’s exposure to foreign currency volatility.

During the financial year, cash flows generated from operations were utilised in investing and financing activities as presented in the Statements of Cash Flows from pages 198 to 202.

Key financial metrics

Our effectiveness in creating value to our stakeholders can be measured by the financial metrics described below:

revenue

Revenue (RM’000)

FYE 2016 424,398

FYE 2017 543,255

FYE 2018 910,156

FYE 2019 1,034,899

FYE 2020 2,519,340

55 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

Adjusted Revenue

Adjusted Revenue (RM’000)

FYE 2016 648,633

FYE 2017 775,618

FYE 2018 1,085,157

FYE 2019 1,194,229

FYE 2020 2,672,244

The primary contributor to the Group’s revenue is its FPSO leasing businesses operating in Ghana, Nigeria and Malaysia. These accounted for over 90% of reported revenue for FYE 2020. The revenue contribution of FPSO/FSO leasing businesses which are co-owned under joint venture arrangements in Vietnam and Ghana is presented separately as adjusted revenue accounted in accordance with the Group’s equity ownership. Currently, the Group has four operating FPSOs, one operating FSO and two FPSOs in the construction phase.

The remaining businesses are four OSVs and three VLCC cargo vessels, of which one has been deployed towards the conversion into FPSO Anna Nery.

Each operating FPSO provides a continuous stream of recurring revenue and cash flows during the contracted operating period, that could stretch as long as 25 years. In FYE 2018, revenue for the Group grew close to RM1.00 billion with the operations commencement of FPSO JAK. FYE 2020 witnessed fresh revenue contribution from FPSO Helang since December 2019, raising revenue levels to RM2.52 billion. Of this figure, RM1.55 billion is non-recurring and associated with the contract’s lease classification as a finance lease, which resulted in the accounting of the transaction as an outright sale of the vessel upon handing over its right of use to the field owner.

The cash flow resulting from these revenue streams are also explained in the sections relating to ‘Net cash flows generated from/(used in) operating activities’ and ‘Free and available cash’.

56 Annual Report 2020

Profitability Reported & Core Profit After Tax (“PAT”) (RM’000)

FYE 2019 (RM’000) Reported PAT Total non-core items RM264,379 28,723 Total Non-Core Items (RM31,432) Core PAT RM295,811

Net gain on foreign exchange 125 21 Impairment loss on property, plant and equipment (5) (1,158) (17) (747) Impairment loss on investment in a joint (3,686) (4,200) venture (4,566) Impairment loss on tax recoverable Impairment on receivables (12,892) Fair value loss on other investments Fair value loss on investment properties Loss on disposal of property, plant and equipment Gain on disposal of other investments Gain on disposal of associates (33,030) Bad debt written off Fair value loss on derivatives

FYE 2020 (RM’000) Reported PAT Total non-core items RM261,297 Total Non-Core Items 496 (RM31,553) Core PAT (166) (28) (424) (848) (889) (893) RM292,850 (1,498) Net loss on foreign exchange (2,069) (2,400) Fair value loss on investment properties Fair value gain on other investments Impairment loss on property, plant and equipment (4,883) Impairment loss on tax recoverable Impairment on trade receivables, other receivables and other assets Loss on disposal of other investments (7,605) Loss on disposal of property, plant and equipment One-off sharing of joint venture’s shortfall in insurance claims (10,346) Property, plant and equipment written off Waiver of debts Warranty cost provided for project Fair value loss on derivatives

57 PROFITABILITY

Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

PROFITABILITY

Reported PAT Core PAT (RM’000) (RM’000) FYE 2016 215,050 FYE 2016 163,996

FYE 2017 194,473 FYE 2017 229,047

FYE 2018 292,073 FYE 2018 345,755

FYE 2019 264,379 FYE 2019 295,811

FYE 2020 261,297 FYE 2020 292,850

EBITDA Core EBITDA (RM’000) (RM’000) FYE 2016 345,452 FYE 2016 229,322

FYE 2017 273,163 FYE 2017 316,386

FYE 2018 649,803 FYE 2018 695,081

FYE 2019 801,160 FYE 2019 831,845

FYE 2020 770,195 FYE 2020 793,250

Adjusted Core EBITDA (RM’000)

FYE 2016 437,540

FYE 2017 532,547

FYE 2018 822,672

FYE 2019 897,451

FYE 2020 865,363

Our Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) is another important measurement of profitability as it isolates costs sunk into capital which enables a reader to better appreciate the earned profits in meeting the Group’s financial obligations. This is extremely important given our Group’s business is highly capital intensive. The Group’s EBITDA stood at RM770.20 million for FYE 2020.

Profit for the Group has grown over the years despite the instabilities experienced in the oil and gas industry in recent years due to various market and geopolitical factors. During these periods, Yinson has been able to ride through fairly well with the successful deployment of FPSO JAK in Ghana and steady utilisation of our other assets.

FYE 2020 started without operation contribution from FPSO Allan following the cessation of its charter contract at the end of FYE 2019 and unfavorable foreign exchange movement during the financial year.

58 Annual Report 2020

Nevertheless, the strong operation management of our other assets and the successful deployment of FPSO Helang in Q4 kept the Group’s PAT stable at RM261.30 million for FYE 2020 – a mere drop of 1.17% against the previous financial year.

The Group’s results are often crowded by financial elements which the Management classifies as non-core financial items to be excluded in calculating its Core Adjusted EBITDA and Core PAT. Core results are more reflective of Yinson’s actual business operations performance during the year. Likewise, Adjusted Core EBITDA and Core PAT achieved for the past two financial years have been stable with the Group recording RM865.36 million and RM292.85 million respectively for FYE 2020.

Reported & Core Profit After Tax charts (pg 57)

Profit after tax and minority interest (“PATAMI”)

PATAMI Basic earnings per share (“EPS”) (RM’000) (sen)

FYE 2016 224,663 FYE 2016 21.05

FYE 2017 197,048 FYE 2017 18.07

FYE 2018 292,179 FYE 2018 26.85

FYE 2019 234,896 FYE 2019 21.43

FYE 2020 209,909 FYE 2020 19.24

Core PATAMI (RM’000)

FYE 2016 173,609

FYE 2017 231,662

FYE 2018 345,861

FYE 2019 266,328

FYE 2020 241,462

PATAMI

It is the Group’s strategy to invite strategic partners to participate in our projects to maximise shareholder value whilst maintaining operational control. Thus, shareholders should refer to PATAMI to determine the amount of profit attributable to them. Reduction in PATAMI was visible in FYE 2019 when a Japanese consortium led by Sumitomo took up a 26% stake in FPSO JAK for a consideration of USD117 million. The Group recorded lower PATAMI and Core PATAMI in FYE 2020 of RM209.91 million and RM241.46 million respectively due to the full year effect of FPSO JAK’s profit generation after attribution to the Japanese consortium in accordance to their stake in the project.

EPS of the Group computed based on PATAMI reflected similar trends to the aforementioned.

59 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

LEVERAGE INDICATORS

Gearing Ratio Net Gearing Ratio (times) (times)

FYE 2016 0.73 FYE 2016 0.52

FYE 2017 1.41 FYE 2017 1.14

FYE 2018 1.14 FYE 2018 0.87

FYE 2019 0.87 FYE 2019 0.51

FYE 2020 1.01 FYE 2020 0.63

Adjusted Net Debt/ Adjusted Net Debt Adjusted Core EBITDA (times) (RM’000) FYE 2016 4.07 FYE 2016 1,779,136

FYE 2017 5.89 FYE 2017 3,135,655

FYE 2018 2.73 FYE 2018 2,242,175

FYE 2019 2.07 FYE 2019 1,853,782

FYE 2020 2.86 FYE 2020 2,474,508

Net Gearing Ratio (calculated as ‘Total Loans and Borrowings’ less ‘Cash and Bank Balances plus liquid investments’ divided by ‘Total Equity’) is widely accepted as a key indicator of an entity’s financial health and accepted by the Group’s lenders. This ratio is actively monitored and managed, and is a result of a combination of selecting viable projects, establishing a sensible project and equity funding structure, and discipline in the creation of cash reserves for loan repayment. This ratio typically spikes during the project execution period but improves once the project has achieved lease commencement as the loan repayment begins and cash reserves are built up throughout the loan tenure. Meanwhile, the difference between Gearing Ratio and Net Gearing Ratio is the absence of ‘Cash and Bank Balances plus liquid investments’, with Gearing Ratio as a less meaningful interpretation of the Group’s leveraging position as it excludes liquid assets.

While gearing ratios outline the degree of which the Group has financed its business through loans and borrowings compared against its equity, the Management assesses the repayment ability of its loans and borrowings through the Adjusted Net Debt/Adjusted Core EBITDA ratio. This ratio indicates the number of years taken for one of the key annual earnings of the Group to repay outstanding loans and borrowings, net of liquid assets (i.e. Cash and Bank Balances plus liquid investments), with a lower ratio being more favourable.

These Group ratios will increase in the coming years in tandem with the project execution funding needs of the FPSO Anna Nery project. To ensure a balanced and healthy financial position for the Group, the Management will continuously assess and determine the appropriate gearing ratios for the Group and balance its levels with equity fundraising proposals to shareholders where necessary.

60 Annual Report 2020

Equity Shareholder Information

5-year performance Yinson (13 Mar 2015 – 13 April 2020) FBMKLCI

RM5.01

1,356.03

2015 2016 2017 2018 2019 2020

1-year performance Yinson (4 Feb 2019 – 31 Jan 2020) FBMKLCI

RM6.20

1,531.06 Jul-19 Jan-20 Feb-19 Apr-19 Jun-19 Oct-19 Mar-19 Sep-19 Dec-19 Nov-19 Aug-19 May-19

For FYE 2020, we declared and paid an aggregate dividend of 4.0 sen per share. Further, on a cumulative basis between 2014 to 2020, we paid 41.35 sen per share or RM448.69 million in total, of which 18.60 sen per share or RM202.53 million related to special dividends which were paid out subsequent to major divestment or monetisation of assets by the Group.

To protect shareholders’ value, the Management is conscious of the need for effective use of capital and ensuring all business plans have been matched with an optimal capital plan.

The Company’s last two capital raising exercises through our equity holders were conducted in 2014 and 2015. We raised RM568 million through a rights issue in 2014 for the acquisition of Fred. Olsen Production ASA, and RM169.6 million in 2015 via a private placement for the FPSO JAK project.

It is usual for most FPSO companies to conduct an equity capital raise for each project win to fund the equity portion of projects. Thus, it is noteworthy to mention that without any further funds raised through our equity holders since 2015, Yinson successully delivered FPSO JAK and FPSO Helang, and is in the process of delivering

61 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FPSO Abigail-Joseph to Nigeria. This was achievable as our existing portfolio of assets is able to generate sufficient cash flows to be reinvested or leveraged against to fund the new projects. That said, this limits our ability to pay a more meaningful and stable dividend in the interim. Accordingly, the Company has not established a dividend policy in view of the growth plans we have in place.

Outside of dividends, we have also delivered strong capital appreciation for our equity shareholders. Over the current financial year, the share price rose by more than 50% from RM4.10 to RM6.20. Notably, as illustrated in the chart below, Yinson’s share price growth has outperformed the KLSE Energy Index during the financial year.

200

150

100

50 1-Feb-19 1-May-19 1-Aug-19 1-Nov-19 1-Feb-20

Yinson (KLSE-YINSON) KLSE Energy index

Further, our share price appreciation has also outperformed Brent oil price as seen in this chart.

200

150

100

50 1-Feb-19 1-May-19 1-Aug-19 1-Nov-19 1-Feb-20

Yinson (KLSE-YINSON) Brent crude

Yinson has been consistent in our efforts to build up our investor relations with institutional and retail investors. In acknowledgement of our efforts in investor relations, we were conferred with the ‘ASEAN – Most Honoured Company Award 2019’ by Institutional Investor Magazine. Our Core Value, ‘Open’, has helped our efforts in this area as we ensure accessibility to the Management and transparency and fairness in information to our shareholders.

62 Annual Report 2020

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

MANUFACTURED CAPITAL

Our Manufactured Capital consists of the resources that go into the building, and acquisitions of, our key assets.

We also consider major infrastructure (including those provided by third parties) used in the building or acquisition of our assets as Manufactured Capital.

The management of this capital is a key business imperative and is considered an essential to fulfilling stakeholder expectations. All three business divisions (Offshore Production and Renewables, with support from Offshore Marine) receive inputs under this capital, with stewardship falling primarily under the Business Development, Projects and Operations core pillars.

Key phases of FPSO conversion project

Business development team secures the project

PROJECTS TEAM EXECUTES THE PROJECT

PROCESSES CONSTRUCTION AND INTEGRATION

Project Management

Engineering HULL TOPSIDES INFRASTRUCTURE DEPENDENCIES Our infrastructure Procurement dependencies are inextricably linked to Construction and our stakeholders. mechanical completion EIT PACKAGE A key stakeholder in MOORING Manufactured Capital Pre-commissioning AND E-HOUSE are our vendors.

Voyage to offshore site Vendors/ suppliers (pg 105) Offshore installation MARINE & RISERS UTILITIES Offshore commissioning

Operations team takes over the daily operations and maintenance of the asset

63 Yinson OUR CAPITALS Holdings Berhad SECTION 4

FINANCIAL MANUFACTURED ORGANISATIONAL HUMAN SOCIAL & RELATIONSHIPS NATURAL

Business Development

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Enter into the • Successful entry into Brazil market with the award of • Secure the contract for the Brazil market the FPSO Anna Nery project Parque das Baleias project • Acquisition of donor vessel Front Falcon for use in the in Brazil FPSO Anna Nery project • Build up a solid base of • Awaiting outcomes of the Parque das Baleias project targets for the years project bid to come • Acquisition of donor vessel Ridgebury Eagle for use in the Parque das Baleias project bid

Build our presence • Set up of Brazil and Netherlands Operations offices • Continue building in countries where for the FPSO Anna Nery project and staffing Brazil and bidding and • Set up of satellite office in London for renewables Netherlands operations acquisition activities activities offices for the FPSO Anna are taking place Nery project

In October 2019, Yinson the setting up and staffing of the Yinson’s strategy for Business successfully entered the Brazil Brazil and Netherlands operations Development is to find and engage market with the signing of two offices. early in the right projects for Yinson LOIs with Petrobras for the charter, and build a strong foundation for operations and maintenance of an We are currently awaiting the future long-term growth. FPSO for the Marlim revitalisation outcome of our bid for the Parque project, Brazil. The LOIs were das Baleias FPSO project, located In parallel, general marketing converted to definitive contracts in the Campos Basin. In the will be continued, including on 23 March 2020. Sumitomo meantime, we have continued to participating in exhibitions is participating in the project build our presence in Brazil to be and conferences that are good with an effective interest of 25%. ready in the event of a successful platforms for sharing our value Preparations and groundwork project award. The vessel MT proposition with our stakeholders had begun prior to the contract Ridgebury Eagle was acquired as in the industry. award, including the purchase of the intended donor vessel for this External environment (pg 36), donor vessel MT Front Falcon and project. Industry (pg 109), MD&A (pg 128)

64 Annual Report 2020

Projects

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Delivery of projects • FPSO Helang on charter 6 December 2019 • Delivery of FPSO Abigail- safely and on time • FPSO Abigail-Joseph on track for delivery in Q2 2021 Joseph in Q2 2021 • Conversion works for FPSO Anna Nery underway as • Progress with conversion per project schedule works for FPSO Anna Nery as per project schedule

Our active projects during the financial year were FPSO Helang, FPSO Abigail-Joseph and FPSO Anna Nery. The key activities for these three vessels during the period under review are listed in this section.

FPSO Helang

We achieved timely delivery of all materials within the project schedule, with a 100% completion of Project Procurement scope.

Activity Date Contract award 30 Apr 2018 Vessel arrival at shipyard 24 Feb 2018 Installation of electrical house 31 Oct 2018 Installation of first batch of process modules, turret, power generation and oil metering skid 28 Jan 2019 Installation of gas turbine combined cycle power plants 15 Mar 2019 Installation of second batch of process modules 15 Apr 2019 Completion of mooring installation 15 Jun 2019 Receipt of Mechanical Completion Certificate and FPSO Sail away Certificate 17 Aug 2019 Moored at Layang Field 15 Sep 2019 Receipt of Ready for Commissioning Certificate 6 Nov 2019 Ready for Start-up Certificate 8 Nov 2019 FPSO Helang on charter 6 Dec 2019

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FPSO Abigail-Joseph

The contract for FPSO Abigail-Joseph was secured in 2019, with the refurbishment, life extension works and installation of new structures including the helideck and riser balcony as well as the installation and integration of topsides modules taking place in Singapore. The project achieved a milestone as one of the world’s fastest brownfield FPSO vessel modification and upgrading projects.

Activity Date Contract award 28 Feb 2019 First delivery of steel and pipe materials 9 Jul 2019 Vessel arrival at shipyard 28 Jul 2019 Completion of demolition scope 15 Sep 2019 Installation of metering skid and steel integration 27 Oct 2019 Completion of dry dock 4 Dec 2019 Accommodation ready for habitation 18 Dec 2019 Completion of tanks and hull coating 15 Jan 2020 Flash Gas/HP compressors skids installation and integration 15 Jan 2020 Completion of riser balcony structural work 20 Jan 2020 Departure to field 26 Feb 2020

FPSO Anna Nery

With FPSO Anna Nery, we have commenced placement of critical path and long lead items, as well as Early Works Engineering Contracts, as per project schedule.

Activity Date Contract award/LOI issued (effective date) 11 Oct 2019 Issued purchase order for gas turbine generators 7 Jan 2020 Issued purchase order for water injection module 24 Jan 2020 Vessel arrival at shipyard 16 Mar 2020 Entered into definitive contract 23 Mar 2020

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Operations 7

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Maintain excellent • 99.9% fleet average fleet uptime achieved in 2020 • Maintain excellent fleet fleet uptime and for FPSOs Yinson operates. This is a 99.8% five-year uptime records for all safety records for all average FPSOs in operation FPSOs in operation • LTI frequency of 0.71 and Total Recordable Incident • Improve and maintain (“TRI”) frequency of 1.42 safety records for all FPSOs in operation Health and safety (pg 95)

Maintain high fleet • Fleet was 100% utilised upon contract award. • Improve and maintain fleet utilisation rate for Utilisation rate over the financial year was 92.69% utilisation rates for OSVs all OSVs

Yinson’s FPSO operations are headquartered in Oslo, with base offices in the country where the vessel is in operation. Maintaining excellent fleet uptime and safety records is a priority during the operations phase.

An average fleet uptime of 99.9% was achieved for our four FPSOs that were in operation throughout FYE 2020.

FPSOs Annual average uptime FPSO PTSC Lam Son 99.7% FPSO PTSC Bien Dong 01 100% FPSO Adoon 100% FPSO JAK 99.8%

Yinson’s fleet uptimes since 2015 for the assets that we operate is 99.8%. This includes Marc Lorenceau (until Q1 2017), FPSO Allan (until Q4 2018), FPSO Adoon and FPSO JAK (from Q2 2017). These statistics are recorded by calendar year.

Average 5-year fleet uptime for assets that Yinson operates

100.0 % 100.0 % 100.0 % 100.0 % 99.7 % 99.7 % 99.9 % 100.0 % 100.0 % 100.0 % 99.8 % 99.8 % 99.8 % 99.9 % 99.8 % 99.9 % 99.9 % 99.9 % 99.6 % 99.6 %

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

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Yinson’s OSV fleet achieved a high utilisation rate of 92.69% in FYE 2020, with 100% utilisation for Yinson Perwira and PTSC Lam Kinh. Our other OSVs experienced the following on-hire periods:

OSVs On-hire periods Feb 2019 to Jul 2019 Yinson Hermes Sep 2019 to Jan 2020 6 Apr 2019 to 6 Dec 2019 PTSC Huong Giang 16 Jan 2020 to 31 Jan 2020

Renewables

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Assess • Establishment of Renewables Division in October 2019 • Continue building lean and opportunities • Part-acquisition of two solar farms in Rajasthan, India, focused team to expand and in March 2020 • Initiate greenfield diversify into other development activity forms of energy • Recruitment of renewables core team • Establish growth platform infrastructure assets • Position renewables to secure opportunities in energy transition

Yinson reached a significant milestone in our long-term strategy for diversification with the establishment of our Renewables Division in October 2019. The renewables team is focussing on Asian and European markets, with asset acquisition activity already kickstarted in FYE 2020.

On 31 March 2020, Yinson successfully completed our first foray into renewables with the acquisition of a 37.5% equity interest in Rising Sun Energy Private Limited (“RSE”), an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India. The two adjoining solar plants have a combined generation capacity of 140MW (AC rated), and achieved their scheduled commissioning dates in 2017. 25-year Power Purchase Agreements, expiring in 2042, have been signed with NTPC Limited, India’s largest power utility, majority owned by the Government of India.

We aim to initiate greenfield development activity in FYE 2021, where we develop, build, own and operate renewable assets. With the establishment of a platform comprising both brownfield and greenfield assets, Yinson will be positioned to meet our goal for growth in this market and to secure other opportunities in energy transition.

Renewables assets (pg 21), Group strategy (pg 30), Looking to the future (pg 139)

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organisational CAPITAL

Our Organisational Capital consists of the structures that help employees – and thereby the business – become more productive. We believe excellence in organisational capital is a differentiator that can give Yinson a competitive edge.

We measure the success of our Organisational Capital by looking at our progress in the following areas:

Business Company Governance Organisational systems and culture and structure processes communication

Governance

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Review and • Several policies updated, reviewed and approved by strengthen Group- the Board • Achievement of ISO 45001:2018 certification level governance • Group-wide training on policies achieved target • Achievement of ISO • Human and Labour Rights Policy developed and 37001:2016 certification approved • Enhance vendor assessment • Enhanced Whistleblowing Policy and Procedure criteria on environmental • Set up Personal Data Protection organisational and social indicators structure • Train and mobilise Data Strengthen • Obtained ESG Ratings from MSCI and Sustainalytics Protection Officers (“DPOs”) to drive Personal sustainability • Revised Sustainability Policy governance and Data Protection on a local reporting level Strengthen • Appointed two new Board members, bringing greater • Implement HLR Policy experience and diversity and experience • Establish and implement effectiveness of our • Redesignation of Board member Information Security Policy Board • Execute training programme for Board members

Review and strengthen Group-level governance

Our international presence and diversity of business operations require that we adhere to various international standards, qualifications and certifications. We aim to go above and beyond in our compliance with these frameworks and integrate responsible practices in all our business activities. As a testament of our strong CG, we have been included in Bursa Malaysia’s Green Lane Policy, whereby our corporate announcements enjoy a more efficient time-to-market process.

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Key Offshore Production-related certifications Key Offshore Marine-related certifications

• International Safety Management (ISM) Code • International Safety Management (ISM) Code • International Ship and Port Security (ISPS) Code • International Ship and Port Security (ISPS) Code • ISO 9001:2015 • Maritime Labour Convention (MLC) • ISO 14001:2015 • OHSAS 18001:2007

Yinson’s Code of Conduct and Business Ethics (“COBE”) 3 14

In line with our aim of fostering a and approved by the Board, training module was successfully culture of integrity across Yinson including our Sustainability Policy completed by more than 400 and our supply chain, we continue and Whistleblowing Policy and employees in the review period. to implement Yinson’s COBE Procedure. Refresher courses are held diligently. The COBE defines yearly and are compulsory for all the foundation of our ethical Our Anti-Bribery and Anti- employees. standards and expectations Corruption (“ABAC”) Policy for personal conduct. Yinson covers key areas of concern and Should any issues pertaining displayed a strong record of outlines standards of employee to ABAC arise, employees are compliance to our COBE, with behaviour towards ABAC encouraged to voice up through no fines, penalties or settlements issues. This includes areas such appropriate channels such as imposed in FYE 2020. as the prohibition of political our independently managed involvement on Yinson’s behalf, Whistleblowing Hotline that The COBE brings together conflicts of interest, facilitation is available 24/7. To increase Yinson’s main governance payments, hospitality and gifts, employee awareness on policies, including references to and entertainment. whistleblowing, notices were our other Group-wide policies. In displayed at high-traffic areas addition, it sets the standards of We have established a number of in our offices, encouraging operations for parties that have supporting programmes that aim employees to speak up and business dealings with Yinson, to further strengthen Group-wide outlining various channels for including business partners, third ABAC standards of behaviour. blowing the whistle, whilst serving parties, international commercial This includes the utilisation of our as a reminder that Yinson does representatives and vendors. ABAC online training module. Set not tolerate unethical behaviour. up in January 2019, the platform is In FYE 2020, a number of policies designed to enhance employees’ and procedures were enhanced understanding of the policy. The

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Our Whistleblowing Policy and Procedure was further updated in FYE 2020. The enhanced document now allows anonymous whistleblowing and lists examples of reportable conducts. To date, Yinson has not received any substantiated whistleblowing reports. Nonetheless, we will be increasing communications relating to whistleblowing internally moving forward.

Governance trainings and awareness

• 25 physical ABAC workshops held Group-wide since 2018 • Online ABAC trainings held since 2019 • Survey done to obtain feedback from internal and external parties on content of ABAC online training module

Personal Data Protection Act In FYE 2021, we plan to further corresponding structures that are (“PDPA”) and General Data operationalise PDPA efforts by utilised to better manage ESG Protection Regulation (“GDPR”) incorporating PDPA notifications matters. To ensure our overall on our public website according sustainability strategy is aligned Yinson stepped up our practices to our operating countries and to our stakeholders’ views, we pertaining to PDPA and GDPR including our Privacy Notice revised our Sustainability Policy within this review period, with on both external and internal in the review period. The new measures implemented including: communication platforms. Moving document acts as our key guiding forward, we aim to train and framework for managing all ESG • Setting up the structure of mobilise our respective DPOs to matters, and was created based Data Protection in Yinson with drive PDPA efforts on a local level on the Materiality Matrix that was the appointment of a Chief to maintain adequate personal developed after obtaining inputs DPO and local DPOs for our data protection of our employees from both internal and external respective offices and business contacts. stakeholders. • Implementing corrective measures to address existing Strengthen sustainability 6 Sustainability Statement (pg 42) Personal Data and GDPR issues governance and reporting • Undertaking relevant trainings for key personnel relating to The Group places high Personal Data laws in respective importance in managing countries sustainability throughout our • Awareness briefings and talks operations. Sustainability conducted during our Yinson Up Governance at Yinson mainly training event. relates to the strategies and

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Sustainability Governance Management Structure

Board of Directors

Sustainability Committee Chairman: Group CEO

Working Group

Yinson’s Board maintains oversight of sustainability strategies through our SC, which is chaired by our Group CEO. The SC meets every quarter and when required to discuss how to better integrate sustainability across the Group.

Sustainability Committee Members

Lim Chern Yuan Group Chief Executive Officer (Chairman of SC)

Daniel Bong Ming Enn Group Chief Strategy Officer, Head of Corporate Advisory Office

Eirik Arne Wold Barclay Group Executive Vice President, New Ventures and Technology

Flemming Grønnegaard Chief Executive Officer, Offshore Production

Lim Chern Wooi Chief Executive Officer, Offshore Marine

Andrew Choy Wei Nung General Counsel, Group Legal

David Charles Brunt Chief Executive Officer, Renewables

Strengthen experience and effectiveness of our Board

In FYE 2020, our Board was strengthened with two new appointments and one redesignation, bringing greater diversity and experience to the Board. Throughout the year, we executed a training programme for Board members to increase their skills and capacities.

<50 Female Male Independent Executive 20% Director Director 40% 60% 50-59 >69 50% 30% 10% 10% Board Gender Age composition diversity diversity

Non- 60-69 Executive Director 60% 20%

Board of Directors (pg 144), Corporate Governance Overview Statement (pg 153)

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Within our Enterprise Risk to managing the themes under through linkage of Sustainalytics’ Management (“ERM”) framework, sustainability better. Our efforts are ESG Risk Rating to one of our we have newly included Energy guided by our Materiality Matrix, credit facilities. Transition Risk as part of our Sustainability Policy, as well as ESG strategic risks. This relates to ratings that we are engaged with, As of FYE 2020, Yinson received Board-level management of risks among others. an MSCI ESG Rating of B. Further, and opportunities that come with Yinson is a member of the the move towards a more climate- In the review period, we have FTSE4Good Index, an equity index friendly economy, as well as the initiated an ESG risk rating exercise series that is designed to facilitate broader narratives that come into with Sustainalytics – and our investment in companies that meet play for the achievement of this commitment to better sustainability globally recognised corporate goal. As such, we are committed performance is further highlighted responsibility standards.

Organisational Structure

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Cross continent • Extended expertise from Yinson’s headquarters to • Continue cross continent integration of build capabilities of local workforce where we operate integration of business units business units Improve internal • Introduction of new Group HR Director to improve • Continual improvement departmental approach and integration of HR function across the of internal departmental structure to align Group structure with Group’s growth • Limits of Authority updated and approved • Introduction of Management Accounting, Asset Lifecycle Management (“ALM”) and Project Quality Departments

Cross continent integration of one of the ways we execute this Reporting, and Investments & business units strategy is by mobilising our Strategic Finance teams expanding existing experts to new territories, beyond our Global Headquarters To support Yinson’s growth, allowing knowledge transfer in Kuala Lumpur to several regions. we encourage cross continent and adoption of our corporate Similarly, we have mobilised our integration of our business units, culture. For example, in FYE 2020, experts in operations and projects where we grow and upskill our we strengthened our Corporate to start up our new offices in Brazil teams in the locations where we Advisory functions across and Netherlands to strengthen our operate. In addition to hiring the Group, with our Financial bases. talent from local communities,

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Cross continent integration

Maintain our Global, Projects and Build up local capabilities to support Operations Headquarters as Centres the communities we are in of Excellence

Mobilise existing experts to new Mobilise existing staff to new territories to encourage transfer of locations to increase and encourage knowledge adoption of corporate culture

Internal departmental In December 2019, Yinson’s Board of objectives and increased structure improvements approved an update of our Limits safeguarding of company assets. of Authority document in line with In FYE 2020, Yinson brought a the growing size and complexity of We also aligned our human new Group HR Director into our our projects. Changes were made resources with the growing needs Management team to improve to streamline current operations, of our business to continually the approach and integration of and reinforced through regular innovate and improve. New HR functions across the Group. trainings. Our internal audit departments that have been The role of our new Group HR scope was expanded to align established during the year in Director is also to spearhead the with this document. This update review include the Management implementation and achievement further ensures consistent, good Accounting, ALM, and Project of the goals set out in this Capital. business practice and CG across all Quality Departments. divisions of the Group, alignment

Business Systems and Processes

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Establish ALM Successfully established in December 2019 • Optimise existing systems Department, for ALM processes strategy and • Further establish ALM structure functions Enhancement of • Migration of 51 out of 57 reporting sites completed • Complete ERP system Group’s Enterprise • Upgraded to latest version of ERP system upgrade and migration of Resource Planning reporting sites (“ERP”) system • Explored and optimised usage of ERP system functionalities across the Group • Automation of data input via Artificial Intelligence (“AI”) capabilities • Improve connectivity between offices, information accessibility, digital filing and access control

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GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Build Information • Review of IT Roadmap by the Board • Complete Phase 2 of Yinson’s Technology (“IT”) • Completed domain standardisation Global Network Revamp capabilities • Completed Phase 1 of Yinson’s Global • Roll out enhanced cybersecurity Network Revamp readiness measures • Supported digitalisation efforts within the • Continue supporting digitalisation Group efforts within the Group • Supported rollout of Sharepoint collaboration • Support ongoing maintenance of platform Sharepoint collaboration platform Utilise digitalisation • Completed development of digital apps for • Enhance existing management tools for HSEQ Safety Culture Transformation Programme system to become fully integrated improvements • Identified HSEQ platforms to be integrated with all work processes, easy to use with other work processes within the Group and certified to relevant standards • Established data indicators for environmental • Develop the safety culture maturity impact monitoring and control to the next level, utilising new digital methods and tools • Ensure full environmental impact monitoring and control • Establish systems and processes for improved control and reduction in Cost of Poor Quality (“COPQ”) Strengthening of Implemented Phase 1 of document control web • Implement Phase 2 of document Document Control portal control web portal System • Initiate Document Management Standardisation across all projects Digitalisation and • Completed Technical and Commercial • The Vendor Registration Platform upgrade of supply evaluation and recommendation (“VRP”) system to be compliant and chain management • Identified areas where frame agreements can qualified to ISO 9001 standards process be established • Enhance capabilities relating to pre-qualification assurance and vendor performance • Increase the scope of the VRP to include analytics • Implement a standardised risk profile matrix

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GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Expand our offshore communication Currently being implemented Implement on all future projects system to include digital reporting for for FPSO Anna Nery project punchlists, mechanical completions and commissioning Strengthen Corporate Advisory Explore digitalisation • Implement new Treasury function through digitalisation solutions for tax and treasury Management System processes • Implement new Tax Management and reporting solution

Asset Lifecycle Management further establish new identified version of IFS. Out of the box functions, such as Performance came modern interfaces, global ALM is defined as the process of Data Management and Lifecycle and intercompany support as well managing an asset from ‘cradle Efficiency processes. as enhanced support on customer to grave’. ALM aims to optimise configuration. With the stabilising asset usage by identifying potential Enhancement of phase nearly over, focus is moved inefficient processes in each stage Group’s ERP system to harvest the benefits where of an asset’s lifecycle, derived Yinson will explore and optimise through the monitoring and Since 2014, Yinson has embarked usage and functionality of IFS utilising of available data. on a continual improvement including third-party add-ons. The initiative to synchronise accounting areas Yinson are currently exploring Ultimately ALM aims to safeguard data through a Group-wide covers accounting, supply chain, the integrity of our assets, optimise ERP system named IFS. The document management, project performance and provide objective system enables information to and Computerised Maintenance data-based recommendations be seamlessly shared amongst Management System (“CMMS”) for continuous learning and departments and across modules. development through all phases of geographical borders, decreasing a project. communication gaps and In the same year, IFS CMMS creating greater time and process module was progressively and Yinson focuses on four main efficiencies. successively rolled out to its areas within ALM, which are Asset operational FPSOs. The CMMS Reliability, Asset Performance Data, A key benefit of this system is module is tightly integrated Maintenance System Management that it creates a digital, near with full supply chain, document and Lifecycle Efficiency. paperless operation environment. management and accounting, all While this has an obvious positive in a replicated solution providing In FYE 2020, the ALM Department impact on the environment, it full access to needed data both was established, with strategy also results in integrated and onshore and offshore. and goals formalised and common information outputs communicated across the from stakeholders, improving In terms of accounting, as at Group. With the concept and cost analysis integrity, quality and 31 January 2020, Yinson has organisational structure now efficiency. completed migration of 51 out of in place, Yinson will focus on 57 reporting sites to the IFS system, optimising the already established During FYE 2020, Yinson performed with the remaining sites targeted to systems that fall within ALM and a successful upgrade to the latest be migrated by December 2020.

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Entities Entities Entities 40 7 6

Status Status Status Migration Migration 2 completed | 2 in progress Malaysia completed Singapore completed Norway 2 target September 2020

Entities Entities Entities Entities 1 1 1 1

Status Status Status Status Migration Target completion Started Target completion Ghana completed Nigeria to June 2020 Netherlands IFS Brazil December 2020

The Group has kickstarted an cater for the expected growth • Support for operational initiative to automate data input trajectory of the Group. The digitalisation efforts for from documents and the creation strategy will adopt the approach operations and projects of related document libraries via AI from cloud first, hybrid and initiatives as outlined in this capable software. The automation finally on-premise solutions with section, such as ALM, IFS system, allows resources to be freed up assessments based upon the Robotics Process Automation and strategically redeployed to technical, financial and security (“RPA”), approval workflows and other improvement areas. The viabilities that best suit the document review processes initiative has been implemented business and industry. • Support for Group-wide for vendor transactions, and will communication and be further expanded to other The plan aligns with the Group’s collaboration initiatives, in routine processes within the overall direction to digitalise, particular the Sharepoint Group. Another focus for the collaborate, co-source and improve platform. year is improving the connectivity connectivity between all offices and between offices, information assets. In FYE 2021, the IT team will accessibility, implementing embark into phase 2 of Yinson’s standardised digital filing and In FYE 2020, the following Global Network Revamp, which enhancing access control. initiatives relating to improving includes enhancing software- Yinson’s business processes were defined wide-area network to successfully rolled out: improve network performance Build IT capabilities 17 for office users. In terms of An IT Roadmap was presented • Domain standardisation across automation, digitalisation and to the Board in FYE 2019. The the Group, enabling integration collaboration, we aim to roll Roadmap is a three-year plan of communications platforms out RPA projects, Sharepoint that clearly sets the way forward • Phase 1 of Yinson’s Global collaboration sites and workflow in terms of IT and digitalisation Network Revamp, involving approval processes while also until 2021. It identifies current implementation of a new providing and advising on the IT IT challenges, the strategy for multiprotocol label switching architecture for digitalisation. addressing them and outlines network, resulting in better the plan for achieving a new and system access for office users enhanced IT landscape that will

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Cybersecurity continues to training, which will be compulsory Utilise digitalisation tools for be a strong focus for the for all employees, as well as the HSEQ improvements Group. We recognise the ever- following measures to strengthen evolving cybersecurity threat our ability to mitigate cybersecurity Yinson’s goals with regard to HSEQ to infrastructure and system risks: are to have zero accidents, zero disruptions, as well as information harm to the environment, and security breaches that could arise • Execute an in-depth excellence in project execution. from cybersecurity attacks. To cybersecurity threat assessment Digitalisation is an important provide Group-wide guidance on • Invest in a global enhanced strategy that Yinson is investing in addressing cybersecurity concerns, cybersecurity solution to reach these goals, as depicted in an Information Security Policy is • Launch a phishing awareness the graphic below. currently being developed. From campaign and assessment, FYE 2021, we plan to carry out followed by user-awareness yearly enhanced cybersecurity training for all employees.

HSEQ digital strategy

Health, Safety & Security Zero accidents

Integrated Safety Environmental Reduce Environment Management culture impact COPQ Zero harm System improvement control to the environment

Quality Excellence in project execution

Digital tools: utilisation and optimisation

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Integrated employees in the offshore industry, Reducing COPQ Management Systems and results were analysed to determine Yinson’s capacity to We believe that the improvement Reporting and management of respond positively and openly to in digital reporting, investigation HSEQ and operational information failures. and monitoring of quality costs will at Yinson are facilitated through serve to reduce the COPQ across two main well-established digital Based on survey results, gaps were the operations of our assets. COPQ platforms. Our in-house Yinson identified and an action plan built is a cost that could realistically Management System (YMS) to address them. One of the key reduce when systems, processes maintains HSEQ management learning tools in the programme is and products are improved. documents, while an external a learning platform, which includes Reduction in COPQ is a strategic software system manages specific four different digital apps. One of HSEQ goal, and development of procedures and processes for these is a ‘game’ where employees methodology and processes will our offshore vessels, such as and crew are presented with real- start in FYE 2021. checklists, incident reporting life scenarios and prompted to and improvements, permits-to- react. Crew engagement with the Strengthening of Document work, audits and findings, risk app will help the Group identify Control System assessments and emergency areas for improvement, while information. reinforcing desirable safety culture As the Group grows, it becomes behaviours. The four digital apps increasingly important that In FYE 2021, we aim to enhance were completed in FYE 2020. The our document control system our existing systems to be further apps will be launched globally on continues to evolve to meet integrated with work processes board all FPSOs and offices in FYE stringent standards of the industry across the Group. Together with 2021. and the certifications that we other teams in Yinson, we will adhere to. In the coming financial be working towards establishing Environment impact control year, we will focus on aligning more user-friendly dashboards the documentation system and and overviews that can be used To support the Group’s focus numbering format across our to identify improvement areas, on sustainability and also in line corporate, projects and operations whilst being certified to relevant with our goal of causing zero office. We will also enhance the standards. harm to the environment, we will management of change process be working towards rolling out and tighten processes relating Safety culture improvement a robust environmental impact to the reviews and updates of monitoring and control system controlled documents. In addition, One of Yinson’s HSEQ goals is to for our FPSOs in the coming we plan to increase the accessibility develop the safety culture maturity financial year. Our aim is to of these documents across the to the next level, utilising new digitalise and automate some Group via our corporate intranet, methods and digital tools. Our monitoring processes, working YNet, albeit with stricter access Safety Culture Transformation together with Yinson’s sustainability control. Programme, which was started team to ensure that data for in 2015, is one example of how key sustainability indicators are In FYE 2020, we implemented digitalisation has enhanced accurately captured. With the Phase 1 of a user-friendly web learning amongst employees and data captured, we will be able to portal which allows our contractors crew. better plan how to manage our and employees to work together environmental impacts in the years on documents in a controlled Employees answered a digital to come. environment. This was successfully survey which was benchmarked based on results from over 100,000 Natural Capital (pg 120)

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implemented in our active projects, and will be used for future projects Continual improvement of vendor management capabilities as well. Phase 2, which is planned for FYE 2021, aims to see the portal integrating with our ERP system. Vendor Vendor due quality Transparency diligence Enhancement of offshore control communication system

During the financial year in review, we successfully enhanced our Information Internal Standardisation offshore communication system by sharing communications expanding into digital reporting for punchlists, mechanical completions and commissioning. This is part of the Group’s overall strategy in digitalisation, moving away from vendors through our VRP, which agreements with vendors can be a manual system of records and is designed to capture and established, which we believe will tracking. Our aim is to bring about administrate requirements to be improve lead times and leverage greater efficiency of site teams and our vendor. off economies of scale. systematic control of ownership and reporting. The system was In the coming financial year, Yinson To achieve these objectives, we successfully deployed on FPSO is looking to upgrade the VRP to will leverage off the industry Helang, and we look forward to ISO 9001 qualified standards, and experience and knowledge of the implementing it in our upcoming enhance capabilities relating to team; alongside current project projects as well. pre-qualification assurance and and tender opportunities. vendor performance. We aim to Digitalisation and upgrade improve the supply chain tendering Vendors/suppliers (pg 105) of supply chain management process via automation and process digitalisation, to achieve a system Strengthen Corporate Advisory that is streamlined, sustainable, function through digitalisation Yinson’s goal is to use digital transparent and scalable. Another tools/technology to continuously planned enhancement is to In the coming financial year, Yinson streamline and improve how we increase the scope of the VRP to plans to implement an integrated manage our supply chain, thus include the ability to run analytics and technologically-robust Treasury enabling us to deliver the required and to generate business insights Management System to facilitate goods at the right time, right price for supply chain optimisation. our growth across new territories and highest quality. and the development of our In the coming financial year, our business divisions. We currently facilitate the procurement team will explore screening and selection of our areas where strategic frame

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Automation Accuracy Main objectives of TREASURY MANAGEMENT SYSTEM Enabler Dynamic of other dashboards strategic objectives

Through the system, Yinson is looking to standardise manual processes and introduce a single platform to monitor complex covenants and financial data reports, putting accurate information at our fingertips to optimise liquidity decision-making. Additionally, the Group will further streamline intragroup charges of the Offshore Production Division with the purpose of developing a centralised approach for cost management and recovery.

There are many factors challenging the effective operation of Yinson’s corporate tax function, including the centralisation of tax oversight, demands of globalisation, increased regulatory scrutiny, increasingly complex law, heightened CG, increased demand for transparency, scarcity of resources, and shorter financial closing cycles.

To keep pace with these demands and challenges and to effectively address them, Yinson is in the midst of acquiring a tax management and reporting solution that provides useful insights to help appraise the abovementioned global tax reporting challenges and identify possible improvements in the accuracy and timeliness of these processes – ultimately sharpening Yinson’s effectiveness in managing our tax obligations. The benefits of having such solution would include:

• Deadline monitoring • Promotes collaboration on data, status and monitoring of tax operations • Provides visibility over tax operations throughout the group as well as entity level • Gathers and analyses tax information from every territory/entity in a centralised solution • Dashboard and analytics to drive better business insights • Streamlines tax reporting format • Centrally stores important tax documents.

We believe that the implementation of this tax management and reporting solution will enhance our tax compliance process and lower our tax compliance risks.

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Company Culture and Communication

GOALS SET PROGRESS GOALS SET FOR FYE 2020 FOR FYE 2021 Reinforce corporate • Corporate culture sessions for all Yinsonites • Corporate culture emphasis culture completed campaign • Corporate culture component integrated as • Brand awareness workshops across onboarding process for new joiners the Group • Integration of Core Values into hiring and appraisal system • Integration of Core Values into everyday life at Yinson Establish effective • Corporate intranet and collaboration platform • Enhanced collaboration across the Group-wide launched groupwide Group communication • Group-wide town halls implemented platforms Establish Project • Projects Communication team established • Increase projects communications Communications across the Group and externally team

Reinforcing Yinson’s corporate • Restructure of appraisal Group-wide communication culture process so that employees’ platforms KPIs are directly linked to their We realise that in order to continue understanding of, and how they Alongside the strengthening our success as an organisation, it utilise the Core Values in their of IT systems to improve our is vital that our team be aligned in decisions and actions communication infrastructure, how we think and make decisions. • Restructure of hiring process Yinson took several steps in FYE Thus, Yinson’s corporate culture to put forward the potential 2020 to establish avenues to - comprising our Mission, Vision candidate’s alignment with enable employees to communicate and Core Values - continues to our Core Values as a key better and have their voices heard. underpin everything that we do. consideration • Leadership and human Of particular significance was Relaunched in 2018 with corporate development training events the launch of Yinson’s corporate culture workshops and team to develop skills aligning to our intranet in October 2019. Named building activities, FYE 2020 has Core Values YNet by popular vote, this is a seen a structured and deliberate • Establishment of various vibrant, interactive space for integration of our corporate culture communication channels, tools Yinsonites to read and post into daily life at Yinson, including and platforms to encourage the updates, connect to one another, the following measures: Core Value, ‘Open’ and access the latest documents • Significant investment into and resources. YNet is designed to • Integration of corporate aligning our business processes encourage employee engagement culture and Core Values into with the Core Value, ‘Sustainable’. and bridge communication gaps between teams, employee levels, Yinson’s brand, flowing through Recruitment and retention to all internal and corporate (pg 84), Personal and professional geographical locations and development (pg 86), communications Performance recognition (pg 88) cultures.

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One of the functionalities on YNet securely, from anywhere and on any progress of all ongoing projects, is ‘Questions and Answers’ - a device. Permissions, governance whilst also keeping the projects forum that encourages employees and functionalities of team sites teams abreast with Company- to ask questions, and vote for were set in FYE 2020, so we are related announcements, mandatory those that they would like an looking forward to roll out across workshops, events and highlights. answer for. Yinson’s Management the Group in FYE 2021. Committee (“MC”) addresses the Amongst communication initiatives top voted questions during town Projects Communications team by the Projects Communications hall meetings. team is the production of video In FYE 2020, Yinson established a documentary content, and Complementing YNet is ‘team Project Communications team to organising CSR, team building sites’ - collaborative spaces that facilitate effective communication and social events for the projects allow employees to work on and coordination across the Group. teams. projects and share information This involves highlighting the

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HUMAN CAPITAL

At Yinson, our employees and crew are considered a core capital. The skills, happiness, engagement and safety of our people are the foundation of our success and play a key role in achieving our business objectives.

Yinson shapes its goals for Human Capital around the following priority areas:

Adding value Leveraging Recruitment through Diversity and Health and Localisation on digital and retention work-life inclusion safety technologies balance

Recruitment and retention

GOALS SET PROGRESS FOCUS FOR FOR FYE 2020 FYE 2021 Recruitment and • Successfully recruited and manned all offshore • Recruit and man all offshore crew to retention of high- crew to support projects and operations support projects and operations quality employees • Launched L.E.A.P • Expand L.E.A.P to Projects and crew • Established partnerships with Malaysian and Headquarters Singaporean universities • Continue to build and develop • Engaged employees through engagement existing university partnerships survey and 360 assessment for leadership • Maintain attrition rate of 5% or group below • Improve staff engagement scores to 67% Personal and • Training and Development Policy approved by • Continuation of ‘Yinson Up‘ professional skills the Board initiatives across other offices development • Carried out first Human Capital Development • Identification of learning and initiative, ‘Yinson Up’ development needs that support continuous professional development Performance • Launched long service awards • Review approach to performance recognition management • Establish more avenues to recognise and reward employees and crew

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Recruitment and retention of • Successfully supported ongoing own set of challenges including high-quality employees and crew operations in Ghana and Nigeria impacts on corporate culture, staff for FPSO JAK and FPSO Adoon engagement and attrition rates. Yinson focuses on recruiting • Successfully recruited for all Yinson’s recruitment and retention employees who align to our Headquarters and base offices. strategy focuses on reinforcing Core Values, and we prioritise company culture and Core this ‘team’ mindset highly FYE 2021, we will continue to Values, talent management and alongside the potential hire’s support ongoing operations in performance recognition. skillset and experience. With Ghana, Nigeria and Malaysia, while the uptake in the global FPSO also recruiting pre-ops crew for our We ran two Group-wide employee industry, we are cognisant that the asset under construction, FPSO surveys in FYE 2020. The first survey competition for talent is fierce, Anna Nery. covers office-based employees on and Yinson must invest on being their engagement levels, whilst an employer of choice to deliver Yinson welcomed its first batch the second is a 360 survey for our on our commitments to all our of two apprentices to join us leadership team, from team leaders stakeholders. under L.E.A.P in October 2019. to our MC. During the 2.5-year programme, Yinson’s steady growth of our apprentices have a chance to 227 employees completed the employee numbers correlates with rotate to all departments within first survey, representing 79% the Group’s growth, as we build the Corporate Advisory Office, of employees. Yinson’s overall our team according to the needs including one month of shadowing engagement score was 63%, of the projects we undertake. As and mentorship with a member of placing us in the ‘moderate’ part of our strategy to retain our Yinson’s C-suite. We are planning zone. The survey highlighted key employees, the Group first looks to expand L.E.A.P to attract strengths of Yinson as ‘Diversity inwards for internal transfers to fill engineering graduates in our and inclusion’, and ‘Empowerment new job positions before looking Singapore office in the near future. and autonomy’. Meanwhile, results outwards. also pointed to opportunities for Yinson also ran trainee the Group to invest in infrastructure For our offshore crew, our programmes for our Ghana and and improve on how we recognise achievements for FYE 2020 are Nigeria operations and continued and reward our employees. An as follows: to build partnerships with local action plan has been developed tertiary education institutions. and has begun to be implemented. • Successfully recruited and We hope to see engagement levels Localisation (pg 89), manned all offshore crew for Local communities (pg 110) rise to at least 67% when the survey FPSO Helang to support transfer is repeated in FYE 2021. from projects into operations While we celebrate the growth • Recruitment and manning of all of the Group, we are aware offshore crew for FPSO Abigail- that this same growth brings its Joseph is underway and on track for transfer from projects into operations in FYE 2021

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Results of FYE 2020 Group-wide employee survey

63% Overall engagement score

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Bottom Quartile (0-61%) Moderate Zone (61-84%) Top Quartile (84-100%)

External benchmarks

23 points 86% 2 points 65% 21 points 84% 4 points 67% Best Employers APAC OIL, Gas & Best Employers Malaysia Norm Malaysia (2019) Consumable Fuels APAC (2019) (2018-2019) (2018-2019)

The 360 assessment was important for all employees The Group’s Training and undertaken by 59 Yinson leaders. and is a key component of the Development Policy was approved It rated Yinson’s leadership against performance management by the Board on 26 June 2019. 11 leadership competencies, process. This is a key way the Group highlighting areas where the seeks to develop employees leadership group was most Development activities focus on: in their individual capacities aligned, as well as untapped areas towards achieving their personal and ‘blind spots’. Individual leaders • Identifying training and development goals whilst were subsequently presented with development needs through ensuring succession within the their personal results and received regular performance appraisal Group. The Policy covers in-house one-on-one coaching, addressing processes training, external programmes, key areas for improvement. We • Working out individual and company sponsorship of see this focus on leadership development plans which approved training programmes development as an important way encourage taking on higher across all offices. We have further to maintain high ownership and roles and responsibilities committed within the document engagement levels across the • Upgrading skillsets to provide financial assistance to Group. • Encouraging adaptability and employees who seek training to mobility. enhance their core competencies. • Highlighting opportunities for We do not currently provide any Personal and professional 12 development internal movement. transition assistance programmes for cases of employee retirement Yinson believes that career or termination. development planning is

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During the financial year, At Yinson, we recognise that the Percentage of employees Yinson launched a programme training and competence of our receiving regular performance called ‘Yinson Up’, or ‘Yup’ for crew are crucial pre-requisites and career development reviews short. These are human capital for safe execution of FPSO in FYE 2020 development events designed to operations, high productivity, improve employee performance, effective succession planning, 100% capabilities and skills. The first crew motivation, commitment, Yinson Up event, held from 9 to career development and We have two-way performance 10 January 2020, saw 70 Yinson knowledge retention for the reviews that promote conversation leaders from across the Group’s Company. between line managers and global offices coming together for corresponding subordinates. two days of training and strategy A rigorous competency and The appraisal process covers all alignment to gear up for the high training matrix is developed for employee levels, from junior to growth period ahead. Future each asset and deployed across senior management. This structure events will target other employee its crew. Every training course encourages the alignment of groups within the organisation. is followed by a competence expectations, as well as the assessment. bridging of skill gaps for better career development through identification of relevant training needs.

For offshore crew, the matrix broadly comprises of the following types of training:

Build the capacity of recent Entry level graduates with little or no On the job Ensure practical learning trainee experience in the oil and gas training experience for all employees programme sector.

Localisation (pg 89)

Ensure crew have the safety Ensure crew are trained in Mandatory training required for their Technical training training equipment and process positions

Mandatory training (pg 100)

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Performance recognition

In FYE 2020, Yinson began rewarding employee loyalty through long service awards, with 38 Yinsonites recognised for being with us for five years or more.

We continued rewarding employees through our Employees’ Share Scheme (“ESS”), where eligible employees are rewarded based on their performance and the duration of their service, among other criteria. 101 Yinsonites were invited to participate in ESS in FYE 2020.

Various communication channels are used to celebrate performance at work and lessons learnt, such as our corporate intranet, town hall meetings, team meetings and other internal events.

Adding value to business through work life balance 9

Progress in FYE 2020 FOCUS FOR FYE 2021 • Enhanced flexible working hours options • New KL office to incorporate • Introduction of ‘Work from home’ arrangements for KL and Singapore family-friendly facilities offices • Implementation of healthier • Examination leave introduced meals at work • Enhancement of annual, medical, maternity and paternity leave benefits • Review approach to flexible working hours and • Monthly ‘Family day’ introduced in Singapore office arrangements, incorporating • Increase in family-friendly CSR events learnings from Covid-19 • KL and Singapore offices received ‘Best Employer to Work for in Asia Award 2019’ by HR Asia

At Yinson, we recognise our We enhanced our flexible working per month. This arrangement has employees’ families as an hours options from the two time- been taken up by around 10% of important internal stakeholder slot options introduced in FYE 2019 employees as at the end of FYE group. We realise that how happy to four for the KL office. Meanwhile 2020, with no drop in productivity our employees are outside of work in other offices, we maintained our recorded. directly affects how productive practise of having employees in the they are at work, so we strive to office during core working hours, In FYE 2021, we aim to review our be an employer of choice in all giving them the flexibility to make approach to flexible working hours the regions where we operate by arrangements to arrive and depart and work from home arrangements improving work-life balance. any time outside of core working following the pilot in Malaysia and hours. Singapore, as well as our Covid-19 Our efforts have earned our KL and experience. Singapore offices recognition as Yinson piloted ‘Work from home’ the ‘Best Companies to work for in arrangements for KL and Singapore Yinson’s Covid-19 response (pg 33) Asia’, an award given by HR Asia. offices in FYE 2020. Under the pilot, FYE 2020 is the second consecutive employees may apply to work from year the KL office has received this home a maximum of two days award.

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We also introduced examination introduced a monthly ‘family day’, The KL office is looking to move leave, complementing our focus on where employees are encouraged to new premises during FYE 2021. employee training and professional to leave the office early and spend One of the key considerations for development. Additionally, time with their families. We also the design of the new premise in Malaysia, we extended our made a conscious effort to select is to make it as family-friendly as maternity leave from 60 days to 120 CSR events which can involve our possible, with facilities including a days and paternity leave from two families. For example, all three fully equipped nursing room and days to 14 days. The allocations beach clean-up events in Miri, childrens’ play area. have surpassed industry norms. Singapore and Kuala Lumpur, as well as Project FPSO Abigail- We sought to involve and Joseph’s tree planting activity saw appreciate our families more our loved ones joining in. this year. Our Singapore office Corporate Social Responsibility (pg 110)

Localisation

GOALS SET PROGRESS FOCUS FOR FOR FYE 2020 FYE 2021 Launch and execute 12 trainees successfully underwent the Nigeria Employ majority of trainees for Nigeria Trainee Trainee Programme operations Programme Continue execution 20 trainees successfully completed the Ghana Identify opportunities for international of Ghana Graduate Graduate Trainee Programme secondment within the Group Trainee Programme Hire local workforce 66% local workforce achieved in Ghana office 80% local workforce in Ghana office by 2022

One of Yinson’s business strategies is to build a strong local presence in our operating countries. We believe that the more local capacity is created in terms of skilled workforce and experience, the more sustainable our local operations will be. The FPSO business is long-term, with assets continuously operating in their fields for many years. Thus, building a sustainable workforce is paramount.

Nigeria Trainee Programme

Nigeria’s trainee programme was launched this financial year, with 12 trainees undergoing a 12-month programme in the pre-ops phase for FPSO Abigail-Joseph. The training programme had four parts:

Entry phase Relevant medical examinations, engagement contract, required Standards of Training, Certification and Watchkeeping (“SCTW”) courses

FPSO familiarisation Four weeks aboard FPSO JAK followed by a visit to FPSO Abigail-Joseph Shipyard training 12 weeks of shipyard and classroom training at two Keppel Training Centres in Singapore Vessel attachment On-the-job training onboard FPSO Abigail-Joseph and training courses in accordance with the training matrix.

The positions trained for were Junior Maintenance Technician Engineers, Junior Cargo Operators, Junior Field Operators, Electricians, Storekeepers, Fitters and Motormen. It is expected that a majority of these trainees will be employed as crew in operations. We will continue to monitor the modalities for future trainee programmes and crew localisation plans in Nigeria following the completion of crew employment.

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Ghana Graduate Trainee Programme

Ghana’s Graduate Trainee Programme has been in place since the project phase of FPSO JAK. The first batch of 20 trainees underwent training from 2015 to 2017, in six different countries.

Norway FPSO Front End Engineering Design (“FEED”) development and ICSS system

China FPSO conversion Ghana Safety & STCW Vietnam courses, riser Production manifolds production and module stools Singapore FPSO integration

Indonesia Process modules fabrication

At the end of the two years, 15 This trainee programme has now For our Ghana office, the trainees were identified for offshore evolved to be included in our contractual agreement is to reach assistant positions and five for offshore crew training programme. 80% localisation by mid 2022, five onshore positions. As at FYE 2020, years after commencement of 10 of the 15 offshore trainees Personal and professional operations. As at February 2020, development (pg 86) have been promoted to full time our Ghana office consisted of positions, while the remaining five 33% expatriates and 67% locals, are still being assessed through our Hiring a local workforce with the local figures including 28 succession planning programme outsourced crew. to take up full time roles. All Hiring local workforce has been a five onshore trainees have been focus area for our base offices. For promoted to permanent positions Ghana and Nigeria, such a practice - four are in based in Ghana as is a part of the local content Operations Engineer, Maintenance requirement. We aim to adopt the Engineer and Cost Controller; and same practice across the Group as one is based in Oslo as Asset and part of our commitment to creating Reliability Engineer. a sustainable local workforce.

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Localisation breakdown of Ghana office employees Local employees Expatriate employees

100 58% 37% 35% 33%

80 Target 80% by 2022 67% 60 63% 65% employees 40 of 42% %

20

0 2017 2018 2019 2020

Localisation breakdown of Ghana management employees Local management Expatriate management

100 29% 16% 20% 20%

80 Target 80% 84% by 2022 71% 80% 60 80% management 40 of

%

20

0 2017 2018 2019 2020

In our Miri office, Malaysians make up 100% of the office, of which 82% are local to East Malaysia. We celebrate the local culture where we can. For example, the opening of our Miri office featured traditional dancers and cuisine, as well as a local lion dance troupe. In Nigeria, all Yinson employees are Nigerian.

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Leveraging on digital technologies

Progress in FYE 2020 FOCUS FOR FYE 2021 • Established digitalisation roadmap and strategy for HR and crewing • Commence execution of the • Rolled out online performance appraisal system to KL and Singapore HR digitalisation strategy offices • Roll out e-training module • Launched online flexible benefit claims via app • Continue rollout of online appraisal system to the remaining offices

Yinson aspires to embrace the • Engagement and experience In FYE 2020, an online appraisal changing business environment • Digital competence and system was rolled out to our KL by moving from ‘analog HR’ to leadership and Singapore offices. We aim ‘new digital HR’. In the traditional • Social learning and gamification to complete the roll-out to all ‘analog’ style of HR, an employee • People analytics and big data remaining offices by the end of FYE experience could consist of • Automation and tools 2021. Another enhancement we hiring, onboarding, performing, • Digital workplace and mobility. made was to digitalise the flexible developing, rewarding then claims process for our KL office, retiring. But with digital HR, Yinson In FYE 2020, Yinson developed making it easier to submit and aims to enhance our employee the frameworks and targets for our track claims requests. experience through: HR digitalisation project, with a number of initiatives planned for FYE 2021.

HR digitalisation goals

Short-term Medium-term Long-term goals goals goals

Identify and implement Bring analog HR data HR systems that achieve Digital workers, into digital sources HR digitalisation fully online roadmap and strategy

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Diversity and inclusion 10 13 21

Progress in FYE 2020 FOCUS FOR FYE 2021 • Increase COBE-related disclosures • Establish plan of activity • Establish Group-wide communication on whistleblowing channel and to underpin aspirations in company policies on diversity and inclusion diversity and inclusion

With a workforce spanning 11 Declaration on Human Rights, and minimisation of community countries and over 20 nationalities, as well as those established impacts where we operate. we recognise that individuals in the International Labour from every background can make Organisation’s eight fundamental A key focus for FYE 2020 was unique and valuable contributions conventions. In line with this educating employees on the to our business. It is precisely this commitment, we do not tolerate principles set out in our ABAC diversity that helps us excel on a any form of discrimination or Policy and raising awareness on global playing field. harassment on any grounds our whistleblowing channel. Our including race, colour, ethnicity or whistleblowing channel can be Yinson’s commitment to national origin, gender or gender used by employees to report diversity and inclusion is upheld identity, sexual orientation, age, violations stemming from COBE- through Yinson’s HLR Policy and religion, disability, marital status related misconduct, as well as COBE. These documents set or any other legally protected violations of any items under our our expectations of operating status. In addition, our HLR HLR Policy. standards for both internal and Policy highlights commitments external stakeholders. Content- towards freedom of association Yinson’s Code of Conduct and wise, they cover key tenets and collective bargaining, anti- Business Ethics (pg 70) identified within the Universal child and anti-forced labour,

Employee distribution by gender

FYE 2018 96 204

FYE 2019 107 243

FYE 2020 129 329

Female Male

Reports of discrimination cases received 0

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Employee distribution by country

FYE 2018 FYE 2019 FYE 2020 TOTAL 300 350 458

157

116 108 116 91 99 91 87

73 54

40 42 9 10 11

0 0 4

FYE 2018 FYE 2019 FYE 2020

Malaysia Singapore Norway Ghana Nigeria Brazil

Employee distribution by age group

25 16 26 18 42 17

39 74 85

2018 115 2019 120 2020 157

105 157 112

<26 26-35 36-45 46-55 >55

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Average attrition rates by country

FYE 2018 FYE 2019 FYE 2020 Malaysia 0.9% 1.2% 1.3% Singapore 5.88% 1.11% 7.61% Norway n.a. 0.59% 0.37% Ghana 1.10% 0.92% 0.86% Nigeria 11% 0% 9.09% Brazil n.a. n.a. 0%

Total number of identified incidents of violations involving the rights of indigenous peoples during the reporting period 0

Health and safety 1

GOALS SET PROGRESS FOCUS FOR FOR FYE 2020 FYE 2021 Increase onshore • Each office took ownership to drive health and • Increase office participation in safety and wellbeing campaigns and activities in their health and wellbeing activities in wellbeing respective country offices each country office • Safety culture was built through awareness • Continuous building of safety campaigns, Safety Moments, safety briefings, fire culture in onshore offices drills and other safety related initiatives • Provide employees with access to an external Employee Assistance Programme provider Safety in Offshore • LTI frequency of 0.71 and TRI frequency of 1.42 • Maintain strong safety Production Division • FPSO Adoon achieves eight years LTI free performance across projects and operations phase of assets • Executed safety training across the Group • Develop the safety culture • Emergency response training carried out in maturity to the next level Singapore • Expansion of International SOS corporate membership to cover the Group Safety in Offshore • Zero LTIs, Restricted Work Days (“RWD”), First • Continuous improvement of Marine Division Aid Cases (“FAC”), Loss of Primary Containment the current practice through the (“LOPC”), illness, diseases or near miss cases Integrated Management System • Executed Equipment & Tools safety campaign deliverables • Executed Monsoon campaign • Enhance competency of health and safety by leveraging on • Received ‘Best HSE Performance 2019’ and awareness and training capability ‘Marine Vessel Safety and Operation Excellence’ awards

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As a responsible employer and the integration of our ERM system and action plans are developed reliable business partner, we with our OHSAS 18001: Health & to address identified gaps. In work diligently to provide a safe Safety Management systems. We FYE 2020, we developed digital working environment to our have an internal requirement for tools to enhance learning and employees, crew and all who work auditors of our ISO certifications/ collaboration, which was identified with us such as our contractors. management systems to be as one of the improvement areas This is to ensure the business certified in ISO 19011 to lead, in FYE 2019 survey. continues to function effectively, participate in, and report their and to attract and retain skilled respective audit findings. As per Safety culture improvement (pg 79) people and business partners. the requirements to maintain As such, our Group-wide target ISO certifications, audits need to Onshore safety is to have zero health and safety be completed once every three issues wherever we operate – be it years. Having said that, we have The nature of work in offices onshore or offshore. internal audit processes once a generally lead to lesser safety year. This is to ensure that our risks, relative to the offshore Safety culture is inseparable from risk identification, assessments divisions. We reinforce safety our Core Values, and both are and incident investigations are culture in our offices as below: embedded in our organisation. maintained at optimum levels. We strive to build a culture • Observation cards prominently where our people embrace In the event of unforeseen available in every office failure, as we believe this is the circumstances or potential • Safety moment segments most effective way to prevent emergencies, we empower our at every town hall meeting, mistakes from escalating to employees to use their best conducted by HSEQ personnel major incidents, and enables us judgment on protecting health • Safety briefings before every to learn as an organisation. In and safety through our internal event, conducted by HSEQ addition to our internal company Stop Work Policy, which outlines personnel culture, we have safety guidelines the Management’s full support • Safety inductions as part of the established within our contractual towards employee, client and onboarding process agreements with relevant business contractor decisions to stop work • Training of employees to partners to guide overall project in the face of potential hazards. function as first aiders, floor commitments towards safety. wardens and fire marshals Yinson has run a Safety Culture • Basic Occupational First Aid, We take a systematic approach Transformation Programme CPR & Automated External to health and safety, and deliver since 2015 in collaboration Defibrillator and Building programmes to enhance safety with an external consultant, Emergency Response & Basic practices across the organisation. which evaluates our capacity to Fire Fighting training for Our risk management frameworks effectively embrace failure. Under employees. and processes, designed to the programme, our safety culture safeguard the health and safety is periodically evaluated against of all employees, are captured via eight leadership behaviours,

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Health and wellbeing initiatives in our offices in FYE 2020

KUALA LUMPUR SINGAPORE OSLO

The KL office launched ‘Lunch and Our Singapore office continued Our Oslo office’s sports club Learn’ talks, with themes generally championing the yearly OCBC was established, with activities revolving around health and safety, cycle, with over 30 participants including skeet shooting, and the environment and CSR. from Singapore and Malaysia stretching and yoga classes in the taking part this time round. office. Two safety-related talks that took place are a crime prevention talk Salsa fit classes were organised, The office also introduced regular by the Malaysia Crime Prevention with classes culminating in an ‘Lunch and Learn’ sessions Foundation and a talk on stress energetic performance during the where employees can watch a management by our corporate Singapore office’s Annual Dinner. presentation or a learning video. insurance providers. Plus, healthy lunches, fruits and Breakfast is provided on alternate snacks are provided every day. The KL office also started free Mondays to kickstart the week. ‘Workout Tuesdays’ for employees, Also, fruits are served every Employees in our Oslo office which aim to bring fitness through alternate Tuesday to encourage participated in the Rosa Sløyfe- workout routines including healthy lifestyles. løpet 2019, the Norwegian chapter bodyweight and dumbbell of the Pink Ribbon Run as a show exercises. of support for the Pink Ribbon cause.

In the next financial year, the Oslo office plans to hold lady-style and swing dance classes, among others.

PORT HARCOURT ACCRA AND TAKORADI MIRI

Yinson’s Nigeria office continued Yinsonites in our Ghana office Employees in Yinson’s Miri office their corporate membership of the participated in the Accra took up membership at the nearby Python (Air Assault) golf course International Marathon (AIM) in Beach Republic Health and Fitness in Port Harcourt which allows October 2019, an initiative which Club, giving them the opportunity employees to enjoy a game of golf we have participated in since to access facilities and classes for or a walk. 2015. The course ranges from a fit and healthy lifestyle. The club 5km to 42km, and participants is equipped with a gym, swimming The office also organised a talk are encouraged to combine any pool, beach volleyball court, on mental health and wellbeing activity they like such as running, badminton court, basketball court including stress management, jogging, walking or dancing during and beach football. Employees where staff learnt how to identify the marathon. also have access to zumba and signs of stress and other mental yoga classes. health issues, and received practical tips for managing them.

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Safety on our FPSOs

We continued to maintain a good health and safety record aboard our FPSOs in FYE 2020, with a LTI Frequency of 0.71 and TRI Frequency of 1.42. Although this is a slight rise compared to FYE 2019, it is still below average industry levels. For FYE 2020 this includes incidents from four FPSOs – FPSO JAK, FPSO Adoon, FPSO Helang (on charter from 6 December 2019), and FPSO Allan (handed over to Projects team on 27 July 2019).

An LTI is an injury sustained by an employee that leads to loss of productive work in the form of absenteeism or delays. TRI is a measure that encompasses all fatalities, LTIs, Restricted Work Cases (“RWC”), cases of substitute work due to injury, and Medical Treatment Cases (“MTC”) by medical professionals. TRI does not include any FACs.

Safety performance aboard FPSOs that Yinson operated

FYE 2020 LTI Frequency during operations FYE 2020 TRI Frequency during operations

0.80 1.60 0.70 1.40 0.60 1.20 0.50 1.00 0.40 0.80 0.30 0.60 0.20 0.40 0.10 0.20 0.00 0.00 Feb-19 Mar-19 Apr-19 Jun-19 Jul-19 Sep-19 Oct-19 Feb-19 Mar-19 Apr-19 Jun-19 Jul-19 Sep-19 Oct-19 Dec-19 Jan-20 Dec-19 Jan-20 Nov-19 Nov-19 Aug-19 Aug-19 May-19 May-19

Health, Safety and Environment (“HSE”) parameters FYE 2017 FYE 2018 FYE 2019 FYE 2020 Fatalities 0 0 0 0 LTI 1 3 0 2 MTC 0 1 0 2 RWC 0 0 0 0 FAC 0 16 2 1 LTI Frequency 0.55 1.04 0 0.71 TRI Frequency 0.55 1.39 0 1.42

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The incidents that occured in FYE All cases are investigated by procedures. Our commitment 2020 are as follows: our HSEQ-led Investigation towards preparation for, and Committee, and results used to responses to such emergencies • 2 LTIs – (i) A crew lost balance develop ‘lessons learnt’ and other and those beyond are captured and fell down a ladder from one training materials to mitigate root via our formalised internal topside deck to another, causing causes and reduce the risk of Emergency Response Plan. The a broken leg and bruises. (ii) similar incidents happening again. document outlines procedures A crew slipped on deck while This process is supported via our to be undertaken in the event cleaning, resulting in an injured established, implemented and of emergencies, including knee maintained procedures for, among communication procedures for • 2 MTCs – (i) A contractor others, notification, recording, our unit-level emergency response opened a camlock on a investigation and analysing of teams and channels for contacting waterpump under pressure, HSE incidents; defining HSE our external stakeholders. causing the camlock to ‘jump’, deficiencies and other factors that Furthermore, regular training in resulting in a broken nose. (ii) A might be the contributor or cause the form of emergency exercises contractor cut his hand during of incidents; defining need for and drills are conducted to ensure the cutting of a ziptie, resulting mitigating activities; and so on. personnel maintain a high-level of in a cut requiring stitches readiness. • 2 FAC – (i) A crew tripped on the Our Occupational Health and edge of a walkway, resulting in Safety management systems act minor leg and hand injuries. (ii) to identify and control potential A crew was impacted in the face risks including those that may by a chain on a chain-block, and require emergency response suffered minor injuries.

Safety performance during the projects phase of Yinson’s FPSOs

HSE parameters 2015 2016 2017 2018 2019 Total manhours worked 5,561,947 11,872,155 770,094 4,283,527 7,268,052 Fatalities 0 0 0 0 0 LTI 0 0 0 0 0 MTC 2 5 0 0 1 RWC 0 5 1 0 0 FAC 1 10 1 5 6 LTI Frequency 0 0 0 0 0 TRI Frequency 0.4 0.8 1.3 0 0.14

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Mandatory safety training is requirements for their country of rise in the number of course types undertaken by an external operation. this year is because on-the-job service provider that specialises training for local Nigerians on in training mobilisation and Below is an overview of FPSO Adoon have been included ensuring that all crew are fully mandatory training conducted in the scope of training. trained in accordance with during the calendar year for crew contractual and government on all our operating vessels. The

Number of course types Number of certificates issued

2018 56 2018 1,276

2019 129 2019 1,140

Top 10 mandatory training courses aboard operating vessels

2019 2018 Number of Number of certificates certificates Course name issued Course name issued Confined Space Rescue 107 Confined Space Entry 136 Confined Space Entry 105 Security Awareness Training 115 Helicopter Underwater Escape Training 27 Confined Space Rescue 111 Scaffolding Awareness 22 Proficiency in Survival Craft 76 Fire and Gas Detection System 17 HUET 51 Advanced Oil Tanker 14 Personal Survival Techniques 41 Helicopter Landing Officer 14 Rigging and Slinging 41 Basic Fire Fighting 13 Fire Prevention and Fire Fighting 37 BOSIET 13 Elementary First Aid 36 Helideck Emergency Response Team 13 Scaffolding Competent Person 36

A few highlights for the financial To ensure the safety of our people e-learning hub, enabling them to year are as below: while travelling and stationed away make well-informed travel decisions from home, Yinson subscribes to taking into consideration health and • FPSO Adoon achieved eight International SOS, an international safety risks. The service is enabled years LTI free on 18 November medical and travel security service through an easy-to-use mobile 2019 which gives access to local medical, and website app. We started • In October 2019, a two-day security and logistics experts, subscribing to this service in 2017 Emergency Response Training almost anywhere in the world. and have been gradually increasing was conducted for our Singapore This includes 24/7 access to travel the scope and coverage across the emergency response team, in emergency assistance centres, an Group. In FYE 2020, we expanded cooperation with the Norwegian online travel tracker and evacuation the coverage of this service to Hull Club. The purpose was and repatriation services. include every Yinson employee and to strengthen confidence in Employees also have access to crew. handling incidents and up-to-date travel advisories and an ‘next-of-kin’ challenges.

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In addition to the guidelines cases reported during the year. tools and equipment dropped established for our internal Quick corrective measures were from 30% to 27%, with the quality stakeholders, we have also created taken and preventive measures put of observations and positive plans to protect our contractors in place including enhanced voyage interventions rising notably. We also on site. Approaches include planning, additional checking for launched a Monsoon Campaign in having our HSE lead/manager property wear and tear, and the October 2019, with the objective review contractor HSE plans inclusion of new inspections in of increasing vigilance during the and perform follow-ups where weekly routine checks. monsoon period, with results yet to applicable. Further, we conduct be provided at the time of writing regular trainings and drills for our An Equipment & Tools Safety this report. contractors to ensure they are Campaign was carried out familiar with their responsibilities, in January 2019, as this was Other initiatives include muster points, and use of the highlighted as an area for management visits, quarterly roving emergency equipment. improvement following an inspections, monthly analysis of analysis of Unsafe Act Unsafe UAUC cards and Hazard Hunt Safety on our OSVs Condition (“UAUC”) cards inspections. Our Offshore Marine submitted in 2018. The campaign Division’s HSE achievements were Our Offshore Marine Division consisted of awareness training, acknowledged through two awards maintained a strong HSE acknowledgement of best from our client. performance in FYE 2020 with zero UAUC cards, and a ‘Best safety LTIs, RWCs, FACs, LOPCs, illnesses video’ competition. Following Clients (pg 103) or diseases or near miss cases. the campaign, the number of There were three property damage observation cards submitted on

Safety performance of Yinson’s OSVs

PTSC PTSC Yinson Yinson Lam Kinh Huong Giang Hermes Perwira Total Incident reports FYE 2018 0 2 0 0 2 FYE 2019 0 1 0 2 3 FYE 2020 1 0 1 1 3 Recordable cases FYE 2018 0 0 0 0 0 FYE 2019 0 0 0 0 0 FYE 2020 0 0 0 0 0 Lost Time Injuries FYE 2018 0 0 0 0 0 FYE 2019 0 0 0 0 0 FYE 2020 0 0 0 0 0 Observation cards FYE 2018 286 249 251 268 1,054 FYE 2019 556 478 281 295 1,610 FYE 2020 1040 1100 301 365 2,806

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SOCIAL & RELATIONSHIPS CAPITAL

Our Social & Relationships Capital consists of our relationships with our stakeholders, and aims to strengthen the bonds of trust with society. It leverages off shared values and behaviours, and provides us with our social license to operate.

Interactions with our stakeholders, taking careful considerations of their concerns and earning their trust are central to developing and maintaining this capital.

Our network is organised into 10 stakeholder groups. The groups and key methods of engagement are listed in this table.

STAKEHOLDER GROUP METHODS OF ENGAGEMENT

Employees • Town halls • Employee performance review • Employee activities • Family friendly offices and activities Human Capital (pg 84) • Corporate intranet, YNet • Training and development programmes • Employee engagement surveys

Crew • Crew activities • Annual Officer’s Conference • Corporate intranet, YNet • Management visits Human Capital (pg 84) • Crew training • Inspections • Safety Culture Transformation • Shipboard safety meetings Programme

Clients • Regular engagement, • Kick-off meetings communication and dialogue • Milestone meetings and • Client forums and events updates • Site visits

Vendors/suppliers • Regular engagement, • Online training module and assessments communication and dialogue on Yinson’s stance towards ABAC • Tenders and requests for • Site visits proposals • Vendor audit • Vendor Registration Platform • Supplier and industry conferences

Governments and • Regular engagement, • Announcements and disclosures regulatory bodies communication and dialogue • Audits and inspections • Compliance with applicable • Work and resident permit issuances legislations • Kick-off, engagement and • Consultation on regulatory clarification meetings matters • Submission of reports • Participation in Government • Competency trainings and regulatory events

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STAKEHOLDER GROUP METHODS OF ENGAGEMENT

Investors and • Analyst briefings • Circulars shareholders • Investor Relations web portal • Investor conferences • Annual Reports • One-on-one engagements • AGMs and Extraordinary General Meetings (“EGM”)

Industry • Participation as exhibitors at industry conferences • Participation as speakers at industry conferences • Networking events

Local communities • CSR activities • Website and social media • Engagement with local vendors • Entrepreneur and leadership • Local trainee programmes development programmes • Press releases • Career development programmes

Bankers and lenders • Road shows • Site visits • Stakeholder engagement event, sYnergy • One-on-one engagements

Partners • Regular engagement, communication and dialogue • Stakeholder engagement event, sYnergy • Collaboration on announcements, press releases and events

Clients 18 enter into a time charter with the during negotiations, kick-offs and client milestones events. Offshore Production Division • Operations and maintenance contracts: The client appoints One of Yinson’s business strategies Yinson’s clients are oil companies Yinson to operate and maintain is ‘Good counterparties’. We who engage us to build assets for the vessel with the crew under seek to conduct our business with the extraction of hydrocarbons at our payroll. reputable clients and joint venture their fields. As an FPSO leasing parties which limit or remove company, our services are provided We have a symbiotic relationship counterparty risk. Yinson has four under the following contract types: with our clients, as they look to clients with whom our FPSO assets us as their defacto production are currently on charter, and two • Time charters: Yinson leases an arm. We place great importance clients whose assets are currently owned FPSO/FSO as well as on maintaining and growing under conversion. operates and maintains the asset these relationships through • Bareboat charters: Yinson regular engagements such as Key assets (pg 16) bareboat charters the FPSO dialogues, reports, client forums to our partner who would then as well as face-to-face meetings

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Client Description Relationship to Yinson

Petróleo Brasileiro Petrobras is one of the largest producers of oil and Petrobras is the charterer S.A. (Petrobras) gas in the world, primarily engaged in exploration and of FPSO Anna Nery, production, refining, energy generation, trading and which is currently under distribution of oil products. Petrobras is among the largest conversion. publicly traded companies in Latin America with common and preferred shares listed on the São Paulo, New York and Madrid Stock Exchanges.

Eni SpA / Eni Ghana Eni SpA, is listed on the Milan Stock Exchange. It is Eni Ghana, a wholly- engaged in the exploration and production of oil and owned subsidiary of Eni natural gas, processing, transportation, and refining of SpA, is the charterer of crude oil, transport of natural gas, storage and distribution FPSO JAK. of petroleum products, and the production of base chemicals, plastics and elastomers.

PetroVietnam PTSC is listed on the Hanoi Stock Exchange and is PTSC is the charterer of Technical Services a member of Vietnam Oil and Gas Group. Its main FSO PTSC Bien Dong 01 Corporation (PTSC) operations involves providing technical services to the and FPSO PTSC Lam Son oil and gas industries including EPCI for offshore facilities, of which they have 51% EPC for industrial facilities and FSO/FPSO services. ownership in while Yinson holds the remaining 49%.

Addax Petroleum Addax Petroleum is owned by Sinopec International Addax Petroleum is the Petroleum Exploration and Production Corporation. It charterer for FPSO Adoon. engages in the exploration and production of oil and gas in Africa, the Middle East, and the North Sea.

JX Nippon Oil and JX Nippon is a subsidiary of JXTG Holdings, one of Japan’s JX Nippon is the charterer Gas Exploration leading corporate groups listed on the Nikkei. JXTG’s for FPSO Helang. (Malaysia) oil and gas business spans upstream, midstream and Limited (JX Nippon) downstream segments. It owns oil and gas assets across the world including North America, Europe, Australia and Southeast Asia.

First Exploration First E&P engages in the exploration, production and FIRST E&P is the charterer & Petroleum sale of oil and gas in Nigeria. In 2018, FIRST E&P was of FPSO Abigail-Joseph, Development recognised by the Federal Ministry of Petroleum Resources which is currently under Company Limited as the ‘Most Compliant Nigeria Content Oil Company’. conversion. (FIRST E&P)

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Offshore Marine Division Renewables Division

Yinson’s newly established Vessel Client Renewables Division currently has PTSC Lam Kinh Repsol Oil & Gas Malaysia Limited one client, NTPC Limited. NTPC Limited, formerly National Thermal PTSC Huong Giang Repsol Oil & Gas Malaysia Limited Power Corporation Limited, is Yinson Hermes PETRONAS Carigali Sdn Bhd/Uzma Bhd India’s largest power utility, majority owned by the Government of Yinson Perwira PTT Exploration and Production Public India. It is listed on the National Company Limited Stock Exchange (NSE), Mumbai, India. NTPC Limited is the client/ During the financial year, Yinson’s in HSEQ. These are the ‘Best HSE counterparty for the power four OSVs were on hire for most of Performance 2019 Award, which purchase agreements for the the year, with short scheduled off- was presented during Repsol’s solar photovoltaic plants at Rising hire periods during the monsoon CEO Forum in December 2019, Bhadla 1 & 2, India. season and in between contracts. and ‘Marine Vessel Safety & We saw our OSVs being rehired by Operational Excellence Award’ Renewables assets (pg 21), Renewables (pg 68), the same clients – a testament to which was presented by Repsol Looking to the future (pg 139) our ability to deliver satisfactorily Logistics in recognition of PTSC on our commitments. Lam Kinh’s good performance throughout the year. We received two awards in FYE 2020 from our clients in Health and safety (pg 95) recognition of our achievements

Vendors/suppliers 11 During the year, our Singapore to keep abreast with the latest office hosted 18 guests from vendor solutions in the market Yinson focuses on building deep, 12 Norway-based energy and widen our internal knowledge long-term working relationships industry companies, who were base, enabling us to make with our key suppliers, as we in Singapore in conjunction with stronger vendor choices. These believe this is the key to enabling the Singapore Offshore and connections are further reinforced Yinson to deliver projects on time Shipyard Roadshow 2019. The through our regular attendance at and on budget, and also ensuring visit was arranged by roadshow exhibitions and conferences that safe and efficient operations of organiser Norwegian Energy gather key players and service our units. Partners (NORWEP). Spanning providers in the industry. five days from 7 to 11 October, The strength of our relationships the roadshow connects Norway- Industry (pg 109) with vendors comes from regular based energy industry suppliers engagement, communication with decision makers, project Yinson manages new vendor and dialogue throughout the managers, technical managers applications through our VRP. The tender, project execution and and procurement managers in platform screens for items such operational phase. Throughout leading Singapore shipyards and as robustness of ABAC practises the engagement, we also conduct engineering companies. and alignment towards ISO audits where we assess the quality standards. Assessment criteria of the goods and services, check While we nurture our relationships is broken into Commercial and relevant certificates and verify that with our existing vendors, we Technical segments, with required contractual terms are being met. also welcome new vendors to disclosures including past project engage with us. This helps us experience in terms of type of

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work done, change orders and contract values. Coinciding with the VRP, we require our vendors to take an online training and assessment module to ensure they understand Yinson’s stance on ABAC matters.

In FYE 2021, we aim to enhance our VRP with social and environmental criteria, including fair labour practises, human rights aspects, health and safety practises and environmental policies.

In FYE 2020, approximately 243 vendors registered on our VRP.

Vendor registration status Vendors by country

1% 10% 2% 9% 6% 7% 1% 1% 1% 2% 12% 4% 1%

17%

16% 49%

47% 3% 2% 5% 3%

Approved Pending approval Brazil Hong Kong Norway Cancelled Pending amendment British Virgin Island Italy Singapore Expired Rejected China Japan South Africa Pending renewal Denmark Malaysia UK Finland Netherlands USA Germany Nigeria

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Governments maintain our license to operate. At committed to providing information and regulatory bodies the same time, we also comply with in a transparent and reliable way industry-specific regulations, which that allows the correct assessment The Group has operations in 11 determine the boundaries within of the issues inherent to our countries, with active offshore which our business is permitted to business. production assets operating in operate, such as with regards to three countries during the financial financial management, health and We also place great emphasis on year in review. safety, product quality and labour compliance as this is a key way to practises. The Group undergoes all achieve greater transformation and Yinson ensures our compliance with necessary accreditation processes impact in the local communities applicable legislation is in order to to remain compliant, and is where we operate.

FPSO JAK FPSO Adoon FPSO Helang Host country Ghana Nigeria Malaysia Flag country Singapore Singapore Malaysia Main regulatory • Petroleum Commission • Department of Petroleum • Marine Department of bodies we engage • Ghana Revenue Authority Resources Malaysia with • Ghana Immigration Service • Nigerian Content • Department of Occupational • Environmental Protection Development and Monitoring Safety and Health Agency Board • Department of Environment • Registrar General’s Malaysia Department • Malaysian Communications • District Assemblies and Multimedia Commission • Ghana Maritime Authority • Civil Aviation Authority of • Bank of Ghana Malaysia • Malaysia Petroleum Management, PETRONAS Methods of • Regulatory trainings and • Obtaining and annual renewal • Regular inspections, audits engagement briefings of permits to operate and surveys • Compliance with quarterly • Kick-off, engagement and • Applicable license fees and annual reports on local clarification meetings as • Compliance with applicable content required regulations • Application for regulatory • Submission of various • Competency trainings as approvals and consents performance and compliance stipulated in the regulations • Annual audits and monitoring reports • Meetings and engagements and inspection • Quarterly reviews and annual • Work and resident permit audits issuances • Access to the vessel and operations bases in Accra and Takoradi to conduct assessments to issue our various permits and licenses

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Investors and shareholders • Financial information (financial • Direct phone number and email highlights, financial performance address of Investor Relations We engage extensively with our and ratio analysis) team. investors and shareholders on • Stock information (price our business model and strategy, ticker, interactive stock charts, Investors may also subscribe to our including risks, opportunities and price & volume, distribution News Alerts through the portal, growth potential as we believe this of shareholdings, top 30 through which the Group’s latest enhances these relationships and shareholders) news and announcements will be improves shareholder confidence • CG information (charters, sent via email. and stable, sustainable business policies, CG reports) operations. • Reports and presentations In FYE 2020, our Investor Relations (Annual Reports, Quarterly team attended several Investor Yinson maintains an Investor Reports, Circulars, Corporate Conferences to speak directly to Relations web portal, publicly presentations) our investors on company updates accessible through our website • Bursa Announcements and strategy, whilst addressing at www.yinson.com. The portal • Press releases questions or concerns that they includes up-to-date information • Corporate calendar may have. These conferences are for our investors and shareholders • Price gain & loss calculator also an opportunity to network and including: deepen relationships.

Date Title Location January 2019 Credit Suisse 10th Annual ASEAN Conference Singapore March 2019 Invest Malaysia (Maybank) Kuala Lumpur April 2019 UOB Kay Hian Syariah Gems Conference 2019 Kuala Lumpur May 2019 Maybank Invest Asia Singapore June 2019 Citibank ASEAN C-Suite Investor Conference Singapore September 2019 Nomura Malaysia Corporate Day Tokyo and Seoul October 2019 UOB Kay Hian Asia Gems Conference Singapore December 2019 Nomura Non-deal Road Show Singapore January 2020 CGS CIMB 12th Annual Malaysia Corporate Day Kuala Lumpur January 2020 Credit Suisse 11th Annual ASEAN Conference Singapore

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Analyst and fund manager via secure teleconferencing, the Below is a list of analyst and fund briefings are another way we briefings are conducted by our MC managers’ briefings conducted keep our investors informed. Held and Investor Relations teams in throughout FYE 2020 to date: in our Global Headquarters in an open and transparent manner. Kuala Lumpur and also available

Date Topic Number of attendees 28 March 2019 Briefing on Q4 FYE 2019 results 33 1 April 2019 Briefing on EHL proposed acquisition 42 27 June 2019 Briefing on Q1 FYE 2020 results 50 26 September 2019 Briefing on Q2 FYE 2020 results 41 16 October 2019 Briefing of LOI award for FPSO Anna Nery 63 19 December 2019 Briefing on Q3 FYE 2020 results 40 24 February 2020 Briefing on LOI award for Pecan project 42 2 March 2020 Briefing on EHL proposed acquisition 30 26 March 2020 Briefing on Q4 FYE 2020 results 46 1 April 2020 Briefing on part-acquisition of Indian solar plants 38

In addition to the above, Yinson Yinson strategically participates • Asia Oil & Gas Conference 2019, engages with our shareholders and in exhibitions and conferences Kuala Lumpur – 23 to 25 June investors through the publication that we believe will bring value to 2019 of this Annual Report, which is also us, and at the same time allow us • Offshore Technology Conference now available via our dedicated to meet with various stakeholder 2019, Houston – 6 to 9 May 2019. microsite, as well as through our groups for knowledge sharing, Yinson was also invited to share its AGMs and EGMs. collaborations and partnerships. knowledge at various conferences, The exhibitions that Yinson including: Industry participated in FYE 2020 include: • Local Content Conference 2019, • Eirik Barclay, Yinson’s Group As an experienced player in the Takoradi, Ghana – 20 to 22 Executive Vice President, New FPSO industry, Yinson is committed November 2019 Ventures and Technology, to sharing our knowledge with our • Africa Oil Week 2019, Cape delivered the keynote speech peers in the industry to enhance Town, South Africa – 5 to 8 at the World FPSO Congress industry excellence while providing November 2019 2019. The speech was entitled support to our peers. • FPSO World Congress 2019, ‘State of the FPSO Nation’, which Singapore – 10 to 11 September discussed offshore exploration 2019 and production developments

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and opportunities for the panel speaker at the iAdvisory Corporate Social Responsibility international FPSO market, and seminar on ‘Africa’s Oil & driving cost competitiveness Gas opportunities: Featuring We aim to create shared economic, through innovation and Ghana, Nigeria, Angola and environmental and social value to collaboration across the FPSO Mozambique’. The event the benefit of our Group and the value chain was organised by Enterprise community around us through the • Filipe Costa, Managing Director, Singapore. delivery of targeted, meaningful Yinson Boronia Production and long-lasting community B.V., took part in the Plenary Local communities 16 development programmes. We are Roundtable discussion at the mainly guided by our CSR Policy World FPSO Congress 2019. The As a global organisation whose and Procedures, which highlights topic was ‘Ensuring Effective operations touch the lives of principles and themes that we FEED: 5 Key Criteria to Ensure individuals all over the world, we should align to when we undertake that You Are Ready for FID’ are committed to good corporate CSR activities – this includes • Kevin Tan, Yinson’s Vice President citizenship in every community we environment conservatism and – Project Services, chaired the operate in. We do this through our rehabilitation, as well as education. discussions at the World FPSO CSR programmes, prioritisation of Congress 2019 on ‘FPSO Supply local vendors, hiring and building Chain and Procurement’ a local workforce, and imparting • Andrew Choy, Yinson’s General skills and development to our local Counsel, participated as a communities.

Promoting quality education and effective learning

Promoting education through sports Focus area of Yinson’s CSR Mission Providing skills improvement and training opportunities to meet the demands of the energy industry

Promoting environmental conservation and rehabilitation

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We have taken part in the following CSR activities in FYE 2020.

TEACH FOR MALAYSIA (TFM)

We continued to be a corporate partner with independent, non-profit organisation, TFM through our sponsorship of a Fellow, Divyang Hong. Engagement activities in FYE 2020 are as follows.

Ideas presented by Fellows were deliberated and sponsored by participating corporates.

Speakers’ Platform (SPLAT!)

SPLAT! is a debate training platform created by TFM Fellows for high school students to improve their command of English and critical thinking skills. The initiative peaks with a debating tournament. Divyang is a founding mentor of SPLAT!

SPLAT! tournament Sponsorship of Seindah Yinson 2020 highlights Average student attendance

One of the critical needs identified 159 students from 7 high needs 87.62% 2018 schools around Kuala Lumpur by our Fellow in the school where participated he is based includes declining 2019 attendance rates. This directly 88.86% were participating in an contributes to poor academic 144 English debate competition for the TFM Week 2019 performance. The Seindah Yinson very first time Programme incentivises students Senior Management co-taught to maintain better attendance TFM Brownbag Session through an inter class ‘Attendance alongside Divyang during this event. Our Group CEO interacted league’ competition and an Yinson met with TFM’s incoming with students on the skillsets individual attendance challenge. 2020 cohort during the foundation’s needed to excel in the global The class with the highest 7-week Pre-Service Programme. environment of rapid digitalisation. attendance rates, and individual Yinson’s representatives had the students with best attendance opportunity to closely engage Dragon’s Den records are rewarded in a school- with the incoming Fellows to wide appreciation ceremony, understand how they are trained Our Director of CEO’s Office acted complete with certificates, trophies in preparation for their upcoming as one of three corporate panel and a celebratory year-end ‘party’. roles as educators. After implementation, school judges in ‘Dragon’s Den’, where attendance rates went up by Fellows pitched initiatives to 1.24%, a significant achievement address social issues within their considering that the results local communities. The annual demonstrated a reversal in the event was held in conjunction with declining attendance trend. TFM’s biannual Innovation Day.

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INTERNATIONAL COASTAL CLEAN-UP DAY

Yinson was the main sponsor members from our Kuala Lumpur, rubbish, weighing over 74kg from in Malaysia and Singapore for Miri and Singapore offices both the Malaysia offices, and International Coastal Clean-Up cleaning the coasts at Piasau Boat 305kg from the Singapore office. Day 2019, a nationwide beach Club, Miri; Pantai Bagan Lalang, This included food wrappers, clean-up event organised by Selangor; and Beach B in Coney containers, Styrofoam items, non-profit organisaton Reef Check Island, Singapore. In Miri, 10 divers cigarette butts and broken Malaysia. took to the sea for the clean-up. fishing gear.

The beach clean-up saw over Yinsonites recorded the successful 140 Yinsonites and their family removal of over 1,000 items of

Kuala Lumpur, Malaysia Miri, Malaysia

Singapore

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YINSON SCHOLAR’S PROGRAMME

This new scholarship programme, Desktop Donation of football initiated by Yinson’s Ghana office, computer donation jerseys with Futurestars provided financial assistance to 10 senior high school students from Yinson’s Ghana office donated Yinson has expanded the coverage Kejabil MA Junior High School approximately 20 desktop of its CSR efforts in Ghana to and Pretea Junior High School in computers to the Information include the Pretea Junior High FYE 2020. The scholarship covers Technology & Communications School. This was marked by a joint a monthly stipend and necessities (ITC) Centre within St Mary’s Senior contribution of 27 football jerseys such as trunks, chop boxes, High School’s compound to help and preloved shoes that are still exercise books, textbooks, pillows, solve the lack of computers in in good condition with our local calculators, school bags and shoes. public schools. With a seating charity partner, Futurestars. capacity of over 50, the ITC Centre also serves four public junior Yinson Welding high schools (JHCs) in the vicinity Training Centre – Arthur Fischer JHS, Apowa Catholic JHS, Kejabil MA JHS and Yinson continued our annual Preatea Awunorkrom JHS. Yinson support of the Yinson Welding also donated two laptops to each Training Centre in Takoradi of these schools in 2019. Technical Institute with a contribution of approximately USD15,000 worth of welding consumables. The centre was launched and named in 2017. Its construction was funded by Yinson and furnished with welding and mechanical equipment provided by the Ghana Ministry of Energy in partnership with the World Bank.

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FURNITURE DONATION AND SCHOLARSHIP AWARD

Yinson donated 140 desks and schools within the vicinity. The communities. In addition, Yinson chairs to the Effiat and Mbo donation was very well-received, has awarded scholarships to eight host communities where FPSO and we have made arrangements university students from the same Adoon is operating, for the use of to have an additional 80 desks communities. students in primary and secondary and chairs donated to the

PLANT-A-TREE PROGRAMME AND EARTHQUAKE RELIEF

Yinson’s FPSO Abigail-Joseph Project Team participated in Garden City Fund’s Plant-A- Tree Programme. 61 employees and their families planted 35 new trees at the Dairy Farm Nature Park, including Sparrow’s Mango, Tampines, Kayu Arang, Kembang Semangkuk Jantung, Salam, and Stink Bean trees.

The team also contributed SGD2,400 to earthquake relief efforts in Mindanao, Philippines, where approximately 300 families were given daily necessities and another 150 received purified water.

SELF-SUSTAINABLE GARDEN FOR OBRA DO BERÇO

Yinson’s Brazil office funded the building of a self-sustainable kitchen garden area for Obra do Berço, a non-profit shelter for orphaned and underprivileged children in Rio de Janeiro, Brazil. The funds went into turning the shelter’s existing garden into a self-sustainable kitchen garden complete with proper irrigation and water proofing edges. The funds also went towards buying gardening tools, seeds and a recycling system. Yinsonites volunteered alongside shelter personnel and the children to plant various herbs, vegetables and fruits such as rosemary, basil, parsley, mint, bell peppers, papaya and jabuticaba trees.

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PINK RIBBON CAUSE

Employees from Yinson’s Oslo office participated in Norwegian chapter of the Pink Ribbon Run, the Rosa Sløyfe- løpet 2019 on 18 October 2019 to show support for the Pink Ribbon cause. Yinson sponsored the participation fees for all eight participating Yinsonites and their partners.

The run is an annual community sporting event which takes place during the Breast Cancer Awareness Month in October across 10 main cities and townships in Norway.

United In The Fight Against COVID-19

Amidst the spread of the Covid-19 pandemic, Yinson actively supported our frontliners and relief efforts around the word. • Donation of 34,000 masks, 10,000 units of medical protective equipment, as well as RM90,000 worth of fabric which was made into PPE to #responsMalaysia, a platform facilitated by the Malaysian Red Crescent Society (MRCS) with the support of Malaysia’s Ministry of Finance. • Contribution of 3,500 units of medical protective clothing and 1,000 pieces of face masks to Sultanah Aminah Hospital, Johor Bahru in response to a donation initiative by the Johor Menteri Besar’s office. • Donation of 5,000 face shields, also to #responsMalaysia. These face shields were procured through the Rainbow Project (Projek Pelangi), an initiative put together by ‘Rumah Pengasih Warga Prihatin’ (RPWP), an orphanage that saw all 200 of its residents working together to produce all kinds of protective medical equipment for our frontliners. • Donation of 4,000 masks and 900 sterile surgical gowns to be used as PPE to Tung Shin Hospital in Kuala Lumpur. • Donation of 1,350 personal hygiene products to the Sungai Buloh Hospital in Selangor, comprising a mix of toothbrushes, toothpastes, hair shampoos and anti-bacterial shower gels. • Provision of healthy meals for healthcare workers in Damansara Specialist Hospital, Sungai Buloh Hospital and Kuala Lumpur Hospital. This is a collaboration with Salad Atelier, a food and beverage provider. • Donation of 380 units of medical isolation coveralls and face protection shields, head and shoe covers, and reusable goggles to the Miri General Hospital in Sarawak. This was a collaboration with Singapore-based Apex Sealing Technologies Pte.

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Engagement with local vendors We contract both local and foreign For FYE 2020, our assets in the suppliers, defined relative to the operations phase were FPSO JAK As we have long-term locations where our vessels are and FPSO Adoon. FPSO Helang commitments in the countries we operating. Wherever possible, went on charter on 6 December operate in, we are continuously we prioritise local suppliers and 2019, at which point it moved on working to improve and strengthen service providers to support local to the Operations phase. We will our supply chain through local economies and empower local include local vendor engagement suppliers and resources. A close communities, while increasing the for FPSO Helang in the next cooperation throughout the effectiveness of the supply chain reporting cycle. organisation and across countries, and reducing transport-related allows us to see opportunities for carbon emissions. a more adaptable and sustainable supply chain.

FPSO JAK: Local vendor engagement in FYE 2020

Number of local Expenditure 48% vendors 52% 40% with top 10 329 vendors 60%

FPSO Adoon: Local vendor engagement in FYE 2020

30% 36% Number of local Expenditure vendors with top 10 54 vendors 70% 64%

Local vendors Other vendors

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Localisation of workforce office established a partnership leadership potential, empowering with Malaysians of Melbourne people to become effective We believe that the more local University; while the Singapore leaders in their spheres. capacity is created in terms of office began a partnership with skilled workforce and experience, Singapore Institute of Technology. Bankers and lenders the more sustainable our local The KL office will be partnering operations will be. Yinson with Sunway University, Malaysia, Our bankers and lenders provide contributes to the localisation of this financial year. We also the equity that funds business our country offices through our launched our L.E.A.P for young growth. We engage extensively trainee programmes, which were graduates. with the banking community on successfully implemented in Ghana our business model and strategy, and Nigeria, and by endeavoring Recruitment and retention of high- including risks, opportunities and to hire a local workforce. quality employees and crew (pg 85) growth potential as we believe this improves the prospect of securing Nigeria Trainee Programme (pg 89), In March 2020, over 30 local future capital. Ghana Graduate Trainee Programme (pg 90), entrepreneurs and emerging Hiring a local workforce (pg 90) Yinson leaders attended a talk Yinson’s strategy for managing Financial Capital (pg 50), on ‘Leadership for Sustainable Financing section in MD&A (pg 134) Local development initiatives Growth’, delivered by globally recognised thought-leader Rajeev In FYE 2020, we organised several We continued to build partnerships Peshawaria. roadshows where key personnel with local tertiary education from our teams responsible institutions in FYE 2020 with Organised by Yinson as part of the for fund raising visited several the aim of sharing our value Group’s ongoing effort to bring European-based banks to proposition with students. value to the communities around strengthen existing relationships During the financial year, the KL us, the talk was designed to unlock and meet with potential new

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financiers. Key personnel from financial institutions to visit FPSO Participants went through a safety Yinson also visited several financial Abigail-Joseph, which was under briefing and project presentation, institutions in China to further conversion at the Keppel Benoi followed by a vessel tour led by key explore funding strategies for our shipyard, Singapore. The visit project personnel. projects and to expand Yinson’s aimed to provide an update on the pool of lenders. progress of the conversion, build a deeper understanding of the FPSO In October 2019, Yinson organised business and showcase Yinson’s for representatives from four capabilities in delivering projects.

SYNERGY 2019 – Creating energy synergies

On 31 October 2019, Yinson industry shapers from the region We intend to host sYnergy hosted its first stakeholder and beyond. regularly, each with a different engagement event, sYnergy theme relating to Yinson 2019. The event saw the Themed ‘Geared for Growth’, and the energy industry. Our gathering of over 300 guests the event saw experts sharing on intention is to engage our key to discuss various synergies to insightful topics such as ‘Fostering stakeholders on our vision, elevate the energy industry to Strong Partnerships: A Strategy for strategy and plans to build the next level. Growth and Diversification’, ‘FPSO strong relationships based on Market Insights’, ‘Risk, Rewards trust and knowledge sharing. sYnergy 2019 brought together and Realities of Corporate Credit the Management and their and Infrastructure Projects’ and teams, partners, leading ‘Roadmap to Digitalisation’. The bankers, financiers, investors, as fruitful event was rounded up with well as energy professionals and a networking dinner.

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Partners in the leasing and operation of Yinson’s longest-standing FPSO and FSO projects worldwide. partnership is with PetroVietnam Forming alliances with reliable Under this collaboration, Yinson Technical Services Corporation business partners has been a key commits to overseeing and (“PTSC”) with whom we jointly success for Yinson, enabling us conducting the overall project own our two Vietnamese-based to increase our access to capital implementation, while Sumitomo assets. The partnership enabled and strengthen our bidding commits to seeking competitive Yinson to venture into the offshore capabilities. This has allowed the logistics and financing on top of production industry in 2011, and Group to bid for larger contracts enhancing the project execution. continues until this day. and venture into new regions. Another successful partnership We maintain our partnerships Yinson’s partnership with Sumitomo that Yinson established was with through site visits, meetings, events is an example of a strategic a Japanese consortium consisting and roadshows to ensure that we partnership that has grown over of Sumitomo, Kawasaki Kisen have an ongoing dialogue and the years, resulting in a win-win Kaisha Ltd (“KLine”), JGC Holdings that information is shared towards for both parties. On 28 April 2020, Corporation (“JGC Holdings”) and creating mutually beneficial Yinson and Sumitomo concluded Development Bank of Japan Inc synergies. In FYE 2020, we actively an agreement for Sumitomo to (“DBJ”). The Japanese consortium engaged with our partners on participate in the FPSO Anna successfully acquired a 26% equity multiple occasions including Nery project with a 25% stake. interest in FPSO JAK in June 2018 hosting sYnergy 2019. Sumitomo’s participation follows – a transaction that velocitised the on from the signing of a long-term value of the project, enabling fresh and binding Memorandum of capital to be redeployed for our Understanding on 20 April 2018 strategic business growth plans. to jointly pursue and collaborate

Yinson’s Partnerships

Japanese consortium consisting of Sumitomo, Sumitomo PTSC KLine, JGC Holdings and DBJ

f f 25% 51%

o effective interest ownership of FPSO PTSC

in FPSO Anna Nery Lam Son and FSO PTSC re

u Bien Dong 01 nat

partnership 26% equity stake in FPSO JAK

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NATURAL CAPITAL

Our Natural Capital consists of the naturally occurring resources used in, or affected by, our business activities. Yinson is aware of its multifaceted environmental footprint stemming from its business operations.

FYE 2020 MAIN IMPACTS FROM FPSO OPERATIONS

CARBON DIRECT EMISSIONS ENERGY ENERGY CONSUMPTION 000’ tonnes of Co million kWh EMISSIONS 2 350.0 325.0

POLLUTION OIL SPILLS TO SEA water DRINKING WATER tonnes CONSUMED ON BOARD 0 tonnes 157.6

MATERIALS CHEMICALS ‘000 litres 3,612

FUTURE GOALS

Improve monitoring and disclosure of Implement phasic approach to monitoring carbon environment-related impacts footprint

Consolidate baseline for reporting, towards Improve environmental awareness across all setting of targets Yinson offices and locations

Identify more efficient methods of managing

Carbon Dioxide Equivalents (Co2e) or carbon emissions

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Governance of our by independent consultancies our sustainability team has set Natural Capitals at the sites in accordance with for FYE 2021, in line with the local environmental assessment Group’s overall direction towards The management of this capital regulations as well as international digitalisation. Working together is the responsibility of Yinson’s lender environmental and social with our HSEQ team, we aim to highest governance bodies, standards. Stakeholders from local digitalise and automate some including our Senior Management. communities are also typically monitoring processes to ensure As such, we are committed consulted within this process. that data for key sustainability to improving Group-wide Further to the report, management indicators are accurately captured. environmental performance. plans are then created as follow-

ups to eliminate or reduce adverse Utilise digitalisation tools for Strengthen sustainability environmental, social and health HSEQ improvements (pg 78) governance and reporting (pg 71) impacts where plausible. We have not identified any non-compliance We understand that reporting and We seek to minimise our with environmental laws and/or monitoring of data indicators is environmental impacts at all levels regulations. a Group-wide effort, with various of our organisation, as reflected departments across our various by the environmental goals set Further, our management of assets and offices playing their in our Sustainability Policy. Our environment aspects is guided by part to diligently ensure accurate strategy for doing so emphasises our internal Emergency Response data inputs are provided. Thus, we strict adherence to environmental Plan, which details procedures realise the importance of raising regulations, such as our continued to effectively identify potential awareness amongst employees maintenance of certifications such impacts towards the environment on the importance of energy as ISO 14001:2005 Environmental for further action. This acts as an management towards achieving Management Systems. We also additional layer of control on top Yinson’s sustainability goals. We benchmark our processes against of our environment management have planned and initiated several industry best practices and strive systems. awareness initiatives through our to improve our monitoring and corporate intranet and town hall disclosure-related indicators. Following the revision of our sessions throughout the year. Yinson conducts its business Sustainability Policy, we have activities through an intricate expanded our boundary of Data captured within this section system of management frameworks environmental aspects to pertains to the FPSOs that were in all business activities. be managed and disclosed. in operation for the entirety of We acknowledge the gaps the financial year – FPSO JAK and On top of having our operations in our existing reporting FPSO Adoon. As FPSO Helang certified to the relevant standards, mechanisms, and target to began operations in December we focus as well on the aspects improve comprehensiveness of 2019, we will be disclosing data for beyond those that are key to data gathering for our assets this asset in the next review cycle. the oil production process. For and corporate offices moving example, before the initiation forward. Implementing robust At present, our focus is on setting of any projects, Environmental environmental impact monitoring our baselines before committing to Impact Assessments are performed and controls is one of the goals reduction strategies.

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Carbon emissions 4 We aim to consolidate and In FYE 2020 we formalised plans strengthen our baseline for carbon for a phasic approach towards Our Offshore Production Division emissions reporting. Having better, more holistic monitoring is the highest contributor to this in place will enable us to of our carbon footprint. The plan, the Group’s carbon emissions, establish quantitative reduction which includes the monitoring being our primary revenue targets, which in turn will enable of greenhouse gases and other stream presently. The by-product us to eventually participate in relevant carbon-equivalents, was of our energy consumption global best practices in emissions guided by recommendations in for hydrocarbon production is reporting, such as the Carbon the Kyoto Protocol. We plan to emitted into the environment Disclosure Project. gradually roll out the plan in the and represents our most material coming years. impact towards the natural ecosystem.

FYE 2020 Carbon emissions management indicators for FPSO JAK and FPSO Adoon

Carbon emissions management indicators1 FPSO JAK FPSO Adoon Total Scope 1 Carbon Emissions – Direct, owned 310,579 tonnes 35,588 tonnes Total amount of flared gas under Yinson 24,098 tonnes 7,873 tonnes

1 Carbon emissions were calculated based on the UK Government GHG Conversion Factors for Company Reporting.

FYE 2020 Carbon emissions management indicators for onshore offices

Carbon emissions management indicators2,3 Malaysia Singapore Ghana Nigeria Norway Total Scope 2 Carbon Emissions – Direct, not- 141.0 Not 48.5 13.3 1.2 owned (tonnes) available Total Scope 3 Carbon Emissions – Indirect, not- 827.0 2,045.0 Not 1.9 2,548.0 owned (Business travels, based on originating available offices) (tonnes)

2 Scope 2 GHG emissions were obtained using latest available conversion factor estimates for all operational countries, for

example, for Malaysia we used the latest 2017 grid emission combined margin factor of 0.585 tCO2e/MWh. 3 Scope 3 GHG emissions were obtained from our respective travel agencies.

122 Annual Report 2020

Energy 8 credentials. The GBI is Malaysia’s global green certification program industry-recognised green rating used worldwide, with the ‘gold’ Given that energy consumption tool, designed specifically for the standard inferring a high-level of directly impacts carbon emissions, tropical climate and Malaysia’s sustainability in terms of aspects we aim to better utilise energy current social, infrastructure and such as energy consumption, within our sphere of influence. economic development. Yinson’s natural lighting and heating new office space is GBI silver-rated, efficiencies. To cater for our growing workforce, which infers an ‘excellent practise’ our Global Headquarters in Kuala when it comes to the efficiency Another initiative planned for the Lumpur will be moving to a larger of resource use while reducing financial year is to install solar space, with an estimated move-in the buildings impact on human panels at our operations base date of Q3 FYE 2021. An important health and the environment. The at Takoradi, Ghana, as part of consideration in deciding the space is also LEED-Gold standard our effort to embrace renewable venue was sustainability, including rated. LEED (Leadership in Energy sources of energy. the building’s energy management and Environmental Design) is a

FYE 2020 Energy management indicators for FPSO JAK and FPSO Adoon

Energy management indicators FPSO JAK FPSO Adoon Total energy consumption onboard vessels (kWh)4 308,528,256 16,140,456

4 Different operational activities such as gas compression contribute to the difference in figures between the two assets.

FYE 2020 Energy management indicators for onshore offices

Energy management indicators Malaysia Singapore Ghana Nigeria Norway Total energy consumption (kWh) 256,616.0 Not available 158,888.1 23,652.8 65,097.0

Pollution 2 (MARPOL 73/78). The vessels within operations. All records are kept our Offshore Marine Division are within our oil record book for three Yinson’s goals with regards to all certified to the International years. HSEQ includes causing zero harm Management Code for the to the environment. We aim to Safe Operation of Ships and for Thus far, Yinson has not minimise any negative effects we Pollution Prevention. encountered any issues relating to may have on the environments in effluent management. Should any which we operate. As part of our environmental such issues arise, corresponding procedures and efforts, we have investigation exercises will be We align our procedures to best detailed response and contingency initiated to identify corrective practices such as those highlighted remediation plans in place to be actions to be set. within the MARPOL 1973 as implemented in case of oil spills modified by the Protocol of 1973 and slop effluents in our offshore

FYE 2020 Pollution management indicators for FPSO JAK and FPSO Adoon

Pollution management indicators FPSO JAK FPSO Adoon Spills to sea (tonnes) 0 0

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Water 15 20 treated sea water, meaning and cleaning, and also as a cooling oxygen, sulphates and some types water medium. An FPSO utilises seawater for of bacteria are removed in order to many purposes in its day to day prevent corrosion issues, upsets in Any water that is discharged operations. Depending on its the piping and to avoid introducing overboard after serving its purpose means of usage and location on ‘food’ to the bacteria which lives is closely monitored so that we do the FPSO, seawater is brought in in the reservoir, which can cause not introduce any contaminations either through sea chests at the reservoir souring. to the sea. If the water for some bottom of the FPSO hull or at reason does not meet the quality dedicated sea water pipes and Seawater is also utilised for requirements, it is automatically hoses on the side of the vessel. keeping the FPSO self-supplied routed to a temporary storage with fresh water. This is done tank for treatment prior to being Sea water in its pure state is through different processes re-routed for discharge. utilised for many functions, such depending on its usage – either as cooling and fire water, but also through an evaporator process or a Drinking water is supplemented as as water that is injected into the reverse osmosis process. This water needed by bottled water. oil reservoirs to maintain well is used for all essential services on pressure. The latter is typically board such as cooking, showering

Seawater treatment Water injection into reservoirs (removal of To boost pressure and prolong the oxygen and sulphate) production life of subsea wells

Marine and accommodation utilisation (direct or indirect) Marine process and equipment cooling Ship main engine cooling Power generation cooling Accommodation HVAC PSO F

Topside utilisation (direct or indirect) Topside process and equipment cooling Basic filtration Seawater intake to Ship utilisation Water ballasting for ship stability Fire fighting system

Fresh and potable water Fresh water / Heating and cooling medium for processes potable water General washing and flushing activities Generator Feed water for boilers Crew consumption

124 Annual Report 2020

FYE 2020 Water management indicators for FPSO JAK and FPSO Adoon

Water management indicators FPSO JAK FPSO Adoon Weight of drinking water consumed on board (tonnes) 60.0 97.6

At our onshore offices, water is mainly drawn from public utilities for usage of daily amenities.

FYE 2020 Water management indicators for onshore offices

Water management indicators Malaysia Singapore Ghana Nigeria Norway Water consumed for drinking and amenities 678.0 Not 508.2 4.3 Not (tonnes) available available

Waste 5 20

Every employee at Yinson is tasked to help sustain our environment, which relates to reducing waste to a minimum.

The proper handling of all waste, both onshore and offshore, is managed across the Group through various overarching policies, management systems, and procedures.

For our Offshore Production Division, waste is managed through Waste Management Plans. The plans are rigorously implemented to ensure each vessel operates in an environmentally safe manner as well as in compliance with international and local regulations, minimising HSE-related risks and liabilities.

We also keep receipts of waste disposal as proof of correct disposal and maintain a garbage logbook that records each incineration or disposal/discharge.

Material 19

Yinson seeks to monitor how we manage materials that are used in our business activities, towards establishing plans for managing them effectively.

In this Annual Report, we disclose statistics surrounding the management of chemicals, paper and bottles on our FPSOs, whereas in our onshore offices we disclose paper usage. We are working to strengthen our baseline reporting with regards to our materials impact and aim to improve on this in future reporting cycles.

FYE 2020 Material management indicators for FPSO JAK and FPSO Adoon

Material management indicators FPSO JAK FPSO Adoon Chemicals used (tonnes) 3,575,688 86,081 Print paper purchased (tonnes) 0.5 0.3 Empty bottles (tonnes) 1.8 1.7

FYE 2020 Material management indicators for onshore offices

Material management indicators Malaysia Singapore Ghana Nigeria Norway Total print paper purchased (tonnes) 1.3 1.9 0.9 0.1 0.6

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