51 LEADERSHIP MESSAGES EPCIC cash flows During the FPSO conversion period prior to lease commencement, EPCIC business activities do not generate cash for the Group, except in instances where our clients provide advanced funding for the FPSO conversion or where there are normal timing differences arising on payments to our vendors. In FYE 2023, the EPCIC net operating cash outflow primarily represented our continued investment into the conversion of FPSO Anna Nery, FPSO Maria Quitéria and FPSO Atlanta, where the costs incurred were in line with our expectations. Our investment into the projects during the conversion phase will be recovered through the bareboat charter payments received during the operations period. Subsequent to achieving final acceptance and first oil on 7 May 2023, FPSO Anna Nery will contribute positively to the Group’s operating cash flows during its operations period. Non-EPCIC cash flows Yinson’s order book represents RM97 billion for the next 25 years. This provides a stable revenue outlook for the foreseeable future, giving us confidence that we will be able to comfortably meet our operational needs. The Group’s business model of earning stable recurring income from asset-leasing contracts is evidenced by the steady growth of our non-EPCIC activities’ cash flows from operations over the past years. In FYE 2023, the net cash flows generated from operating activities for non-EPCIC activities was RM1.3 billion, a 49% increase from the previous year. Looking back over a 2-year time horizon, Yinson’s operating cash flows from non-EPCIC activities have more than doubled since FYE 2021. Cash flows from operating activities Net cash flows (used in)/generated from operating activities (RM million) FYE 1,259 846 598 445 495 FPSO Operations and Others (Non-EPCIC) (RM million) FYE (2,484) (1,833) (1,373) 473 152 EPCIC (RM million) FYE (1,225) (987) (775) 918 647 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 FINANCIAL REVIEW
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