Yinson Annual Report 2019

OPERATIONS UPDATES Yinson is constantly looking to optimise and enhance our operational platforms so we can provide greater value to all our stakeholders. We believe that investing into our management systems, digital and IT platforms, procedures and procurement practises are key factors to promote our continued growth. In line with our HSE goal of ‘zero harm to people and the environment’ we devoted significant effort in FYE 2019 towards conducting a complete management system review and putting a continuous improvement programme in place. These initiatives, conducted hand-in-hand with our ISOCertification process, spur us to undertake operational improvement plans and track how we perform against the set goals to achieve greater efficiencies. Yinson also embarked on a digitalisation strategy which aims to create a unified digitalised platform for project execution, commissioning and operations. This platform is designed to enable data collection for all critical equipment throughout the lifespan of all units. The application of digitalisation in the project execution phase of our operations also sets the foundation and baseline for future operational excellence. Part of the digitalisation strategy is the implementation of a Group-wide ERP system named IFS – a project that the Company embarked on in 2014. As the Group continues growing in terms of geographical locations, project scope and size and employee numbers, we believe that having an efficient and robust flow of information becomes increasingly vital. The system enables information to be seamlessly shared amongst departments, decreasing communication gaps and creating greater time and process efficiencies. The implementation of the system is still ongoing, and we will continue to enhance its usage to achieve higher efficiency in our operations and reporting. In addition to the implementation of IFS, Yinson is also in the midst of strengthening our supplier engagement process through our Vendor Registration Platform. This is a large project which will eventually see a registration of all vendors. A further explanation on this platform can be found in the Supply Chain Management section of our Sustainability Statement on page 47. The Group has taken decisive measures to proactively prepare for the anticipated growth ahead by strengthening areas such as asset integrity management, Computerised Maintenance Management System (“CMMS”) and procurement. We have also taken active steps to build our presence in the country offices where our bidding activity is taking place, in preparation for taking on immediate operation of the units in the event of an award. Further, we have devoted considerable resources into developing existing and potential managers to be ready for the growth while keeping up a robust training and competence management programme for our crew in order to maintain our world class safety and uptime records. For the period under review, we are pleased to report zero LTIs and an average fleet uptime of 99.9% for the five assets in our fleet that were in operation in FYE 2019 – FPSOAllan, FPSO JAK, FPSO Adoon, FSO Bien Dong and FPSO Lam Son. Building local talents and capacity is an integrated part of our business strategy, and it is with this strategy in mind that we have rolled out an ambitious localisation strategy. Yinson has already set new standards for localisation in West Africa, with initiatives including local training programs, partnerships with local educational institutions and industry start up assistance (see Sustainability Statement on pages 56 to 63). Management Discussion and Analysis Yinson Holdings Berhad ANNUAL REPORT 2019 36