Yinson Annual Report 2018

Health and safety is a core value for Yinson and we do not compromise on the safety of our people. We believe a healthy workforce working in a safe environment is key to risk mitigation and prevention. Avoiding major accidents is a “must-win- battle” in order to achieve our strategic ambition to become a trusted global leader in the FPSO industry. Our primary goal is to minimise the probability of accidents at the workplace, and our approach to health and safety is through a combination of organisational procedures that are constantly reviewed, consultation with external parties, and specific activities aimed at identifying and assessing risks. The following measures have been put in place to increase the knowledge and practise of health and safety principles among our employees: 1. Planned approach towards hazard identification and risk assessment 2. Feedback and learning system 3. Data collection and documentation system 4. Raising safety culture maturity Our excellent safety record speaks for itself. We have a very low LTIF (Lost Time Incident Frequency) and we have not had any major incident in the lifetime of the company. This is exemplified by the operations and maintenance of FPSO Adoon, where it has recorded zero LTI for the last six years. More importantly, though, is the openness culture we have implemented when it comes to mistakes and failures. Yinson was above average in the industry in 2015 and we have seen an impressive improvement from 2015 to 2017. The survey is built on questionnaires that are distributed to all employees onshore and offshore, in depth interviews of several personnel onboard and offshore, observations done onboard and finally review of safety cases and documentation. The computer model uses these data to calculate the probability of a major accident. The major accident risk has decreased by 30% from 2015 to 2017. Notwithstanding that, we still need to make further improvements. In line with our existing vision, we will need to meet, and then exceed, the expectations of global O&G companies in order to forge unique partnerships. The way forward will be to focus on two main improvement areas - Collaboration and Learning, and we will continue with a number of initiatives to address these areas. These include training programs, improving communication channels, inter- location visits, employee exchange programs, improvements in relevant HR development procedures, and conducting regular reviews and assessments on our Operational Safety Strategy and current safety procedures. PROMOTING HEALTH AND SAFETY Our most prominent hallmark is that we see a failure or mistake as a new opportunity to learn and improve. We know this because we have hired an external consultant company (PROPEL) to measure our safety culture both in 2015 and 2017. PROPEL are experts in safety culture and they have developed a data model which can predict the major accident risk for any company based on a safety culture survey. They have a large database covering many companies in the oil, gas and maritime industry. Corporate Overview Stewardship Governance Accountability 53 Yinson Holdings Berhad Annual Report 2018