Yinson Annual Report 2021

15 ANNUAL REPORT 2021 CHAIRMAN'S STATEMENT On behalf of the Board, I am pleased to present Yinson’s Annual Report 2021. Everything about 2020 was beyond anyone’s expectations. We faced these challenges steadfastly, determined to continue bringing value to our stakeholders and contribute actively to the recovery of the global economy. In this, I believe we have succeeded. RISING BEYOND FYE 2021 2020 will undoubtedly be marked as one of the most challenging years in global history, with Covid-19 causing unprecedented economic turbulence and disruptions. We are thankful to see the global economy recovering, with the International Monetary Fund revising global gross domestic product growth forecast to 5.5% for 2021, up by 0.3 percentage point. This is coupled with strong growth in commodities cycles. For the oil sector, 2020 started encouragingly, with oil prices touching the USD70 per barrel mark. However, the price took a freefall due to the combined effects of Covid-19 and actions taken by the Organisation of the Petroleum Exporting Countries (“OPEC”). The volatility caused many oil & gas developments to be postponed, resulting in an all-time low in the number of FPSO awards. Yinson was also affected, with one project cancelled in FYE 2021 and another postponed until FYE 2022. Thankfully, our FPSO business continued to show stability in earnings, and we remained resilient due to the long-term nature of our contracts, which are signed with reputable oil companies. Oil prices averaged out at USD40 level in FYE 2021, and at the moment of writing, it has risen to high USD60s. We see this as a positive start to FYE 2022 for our offshore production business and are cautiously confident that the industry will pick up where it left off pre-Covid-19, in terms of project awards and field developments. Opportunities arose in our newer energy segments. The outlook for our Renewables Division continues to be exciting. Trends indicate significant market potential, with renewables being yet early on the growth S-curve. Industry megatrends, such as falling battery and autonomous technology costs, and the rising market share of electric and autonomous vehicles, also bode well for our Green Technologies Division, which was established in 2020. We believe that our entry into renewables and green technologies was well-timed, and we look forward to bringing value to our stakeholders through these ventures. On the business front, we were able to deliver on our key milestones despite the challenges faced. FPSO Abigail- Joseph achieved first oil on 28 October 2020 and work on our Brazil-bound unit, FPSO Anna Nery, is progressing well towards targeted delivery in 2023. Our Renewables Division made its first acquisition – the 140MW Bhadla 1&2 Solar Plants; and then went on to win a contract to develop a 190MW plant in Nokh Solar Park. Both solar assets are located in Rajasthan, India. Additionally, the team has built up a solid pipeline, with promising wind and solar opportunities coming up in new regions. We also started up our Green Technologies Division, which is already yielding fruit in the areas of mobility and green energy sources. I am pleased to report that despite the various challenges, our financial performance has been strong. Yinson was able to maintain its financial robustness in FYE 2021 through the growth of its Engineering, Procurement, Construction, Installation & Commissioning ("EPCIC") and non-EPCIC business activities, where we achieved a 92% revenue growth and 151% increase in core profit. LIM HAN WENG Founder and Group Executive Chairman