Yinson Annual Report 2019

Strong and supportive shareholders and business partners Forming alliances with reliable business partners have been a key success for Yinson. It has enabled us to increase our access to capital and strengthen our bidding capabilities, lay the foundations for the Group to position ourselves for bigger contracts and venture into new regions. On 20 April 2018, the Group entered into a long term and binding Memorandum of Understanding (“MoU”) with Sumitomo Corporation (“Sumitomo”) with a view to jointly pursue and collaborate in the leasing and operation of FPSO and FSO projects globally. Apart from leveraging off Sumitomo’s extensive business network, which spans 65 countries, Yinson will also receive Sumitomo’s support when seeking competitive logistics and financing, thus enhancing our capacity to take on larger projects. It is a win-win situation for both parties, as Sumitomo in turn is able to gain fromYinson’s experience in project execution and operations through our strong and experienced project team. In a further demonstration of their confidence in our Company, a Letter of Agreement pertaining to a potential joint venture was signed with Sumitomo on 18 February 2019 specifically regarding Project Marlim in Brazil. The Letter of Agreement confirmed Sumitomo’s intention to participate in Project Marlimwith an effective interest of at least 20% in the event of a successful bid by Yinson. Private Placement RM11.3 million Rights Issue RM85 million Private Placement RM56.5 million Private Placement RM106.6 million Rights Issue RM568 million Perpetual Securities (Private Placement) USD100million Private Placement RM169.8 million Perpetual Securities (NC5) USD100million Sukuk Mudharabah (NC15) RM950million 1 2011 2012 2013 2014 2015 2017 2018 2 Private Placement RM20.4 million 3 4 5 6 7 8 9 10 11 12 Perpetual Securities (NC5) USD30million Perpetual Securities (NC5) USD90million 2019 Another successful partnership that Yinson established this year was with a Japanese consortium consisting of Sumitomo, Kawasaki Kisen Kaisha Ltd, JGC Corporation and Development Bank of Japan Inc. Yinson successfully completed the sale of a 26% stake in a subsidiary that owns FPSO JAK for a consideration of up to USD117.00 million on 6 June 2018. The Japanese consortium now holds a 26% equity interest in Yinson Production (West Africa) Pte Ltd via Japan Sankofa Offshore Production Pte Ltd. This transaction velocitised the value of the project, enabling fresh capital to be redeployed for our strategic business growth plans. In our journey of growth over the past years, Yinson’s shareholders and bondholders have provided us crucial financial support through equity and perpetual capital raisings. 12 instances since 2011 have comfortably placed Yinson in a healthy position for future growth initiatives. Management Discussion and Analysis Yinson Holdings Berhad ANNUAL REPORT 2019 38