Yinson Annual Report 2021

23 ANNUAL REPORT 2021 MANAGEMENT DISCUSSION & ANALYSIS Yinson has undergone several transformation phases since being founded in 1983 as a humble transport agency in Malaysia. The first phase was transport and logistics, where we grew to become one of Malaysia’s largest transport companies. We transitioned into our second phase of transformation, offshore production, through a JV with PetroVietnam Technical Services Corporation ("PTSC") Vietnam for the construction of FSO PTSC Bien Dong 01 and FPSO PTSC Lam Son. Having gained experience from constructing and financing these two Vietnamese assets, we identified offshore production as a niche segment with strong growth potential. We entered into our third phase as a full- fledged independent FPSO build, lease and operate service provider when we acquired established Norwegian FPSO company, Fred. Olsen Production ASA, and divested our non-oil & gas segments. Through dedication and hard work, we grew to become one of the largest independent FPSO leasing companies in the world. Cognisant of the rising global energy needs and demand for a more sustainable energy system, we evolved into our fourth stage of transformation as an energy infrastructure company. In line with this, we established our Renewables Division in 2019, and Green Technologies Division in 2020. I shared this brief trip down memory lane to highlight Yinson’s ability to adapt to changing external environments, seizing opportunities to deliver greater returns to our shareholders. One recent example of this is FPSO Abigail-Joseph – our most recent redeployment project. By redeploying an existing vessel in our fleet, and applying knowledge gained from previous redeployment projects, we were able to bring forward the project schedule, providing a more cost-effective solution for our clients and greater value for our shareholders. Similarly, our acquisition of RSE in India paved the way for us to win the Nokh contract – elaborated in more detail by my colleague in the Business Review for Renewables. Throughout the various transformation phases and periods of economic volatility, we have maintained a steady return to shareholders. As part of our financial management strategy, we keep dividends to a fairly stable level as we are mindful of the need to balance between rewarding shareholders and ensuring there is sufficient retained capital in line with the Group’s business expansion plans. Cost model based on ISO 15663 that calculates the lifecycle cost of various alternatives, enabling us to make better decisions for the sustainable maintenance of our FPSOs. We established an Operational Readiness & Assurance ("ORA") Department focusing on optimising the interface between operations and the early stages of the asset lifecycle. Additionally, Technical Authorities were established in all engineering disciplines to ensure that the technical decisions made are in line with the appropriate level of competence, quality, and consistency, to safeguard the technical integrity of our assets. Yinson has achieved industry-leading innovation in this area. We have shared our knowledge in several conferences held in FYE 2021, with more engagements lined up in FYE 2022. CREATE SUSTAINABLE SHAREHOLDER VALUE Creation of sustainable shareholder value is a key strategy of Yinson. This demonstrates our continuous ability to provide good and steady returns to shareholders’ investments and builds investors and stakeholders’ confidence, who provided us strong support over our transformative years.