INTEGRATED ANNUAL REPORT 2024 UNLOCKING VALUE. STRONGER TOGETHER. Children from the Dream Library in São Lourenço, Brazil, contributed their creativity and passion to create the front cover of this Integrated Annual Report. Read the story inside.
About the cover Our front cover this year is adapted from a mural created by over 40 children from the Dream Library – a community library which Yinson sponsored and supports. The Dream Library is part of a community centre run by our local community partner, Fábrica dos Sonhos, located in São Lourenço, about five hours from the Yinson Brazil office. The children, aged between 4 and 11 years old, coloured in the mural pieces, which will be composited to create a striking mural for one of the walls in the library, in addition to being featured on the front cover of this Report. The mural is themed ‘Our dream future’. The artwork beautifully captures the imagination, aspirations and passion of the children, reminding us once again to remain steadfast in our purpose as a company: To provide energy infrastructure that empowers communities, drives economic growth and protects the environment for both current and future generations. Read the full story behind the front cover of our Report on our interactive microsite. Throughout the cascading global challenges in 2023, Yinson remained fiercely focused on delivery. Against many odds, we innovated and delivered critical energy infrastructure solutions around the world, including our biggest FPSO asset and largest solar park construction project to date, and two groundbreaking electric vessel prototypes. Our laser-sharp focus on delivery will continue into 2024, where we are working tirelessly to deliver some of our most ambitious commitments yet. When we deliver on our promises, we are delivering value. We also believe that building strategic partnerships is the key to multiplying the value that our projects can bring. The partnerships that we have established across the various spheres – financial, engineering, sustainability, governance and industry, to name a few – have enabled our solutions to have far greater reach and impact. Investing in such partnerships, too, will be a focus area for Yinson moving forward. Our focus on delivery and building strategic partnerships is encapsulated within our theme for this Integrated Annual Report 2024, ‘Unlocking Value. Stronger Together’. About our theme, ‘Unlocking Value. Stronger Together’.
In line with Yinson’s commitment to sustainability and the environment, we are not distributing hardcopies of this Report, except by request. We encourage you to read this Report on our interactive microsite, available at ar.yinson.com/2024, and also accessible by scanning this QR code. As a further reflection of our efforts to reduce our paper usage, Yinson will donate the print cost of every hardcopy Report to Otchiva, an Angolan NGO dedicated to protecting wetlands, in particular mangrove ecosystems. VIEW THIS REPORT ON OUR INTERACTIVE MICROSITE NAVIGATION ICONS The following navigation icons are used to enhance the linkages between strategic information, and inform readers on where additional information can be located within the Report or across Yinson’s communication channels. Capitals C1 Financial Capital C3 Intellectual Capital C5 Social & Relationships Capital C2 Manufactured Capital C4 Human Capital C6 Natural Capital Businesses Yinson Production YP Yinson Renewables YR Yinson GreenTech YGT Regulus Offshore RO Farosson FO Material topics ME1 Climate Change & Carbon Management ME3 Biodiversity Management MG1 Business Management & Performance MG3 Sustainable Supply Chain Management MS1 Occupational Health & Safety MS3 Human Capital Development MS2 Human & Labour Rights MS4 Community Engagement MS5 Diversity, Equality & Inclusion ME2 Inclusive Energy Transition ME4 Environmental Management ME5 Resource Efficiency MG2 Corporate Governance & Business Ethics MG4 Digital Transformation Stakeholder groups S1 Bankers & lenders S3 Crew S5 Governments & regulatory bodies S2 Clients & customers S4 Employees S9 Equity partners S7 Investors & shareholders S6 Industry S8 Local communities S10 Suppliers Scan to access related information on our online communication channels Points to related sections within this Report
YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 BASIS OF THIS REPORT This Integrated Annual Report 2024 (“Report”) aims to highlight the progress of our strategies and value creation journey. We also discuss the steps we have taken to manage our business risks and opportunities against the external landscape. In clearly mapping out our value creation strategies for all stakeholders, we hope that the improvements in disclosures will help you make better and more informed decisions pertaining to the Group. SCOPE AND BOUNDARIES The scope of this Report includes Yinson Holdings Berhad (“Yinson” or “the Company”) and its subsidiaries (“the Group”). The Report covers the financial reporting period from 1 February 2023 to 31 January 2024 (“FYE 2024”) unless stated otherwise. REPORTING PRINCIPLES AND FRAMEWORKS In compiling this Report, we have considered the following frameworks and guidelines: • International Integrated Reporting Framework (2021) (“<IR> Framework”). • Bursa Malaysia Securities Berhad (“Bursa Securities”) Main Market Listing Requirements (“MMLR”), Sustainability Reporting Guide and Toolkits (3rd Edition) and Corporate Governance Guide (4th Edition). • Malaysian Code on Corporate Governance 2021 (“MCCG”). • International Petroleum Industry Environmental Conservation Association’s (“IPIECA”) Sustainability Reporting Guidance for the Oil and Gas Industry (4th Edition). • Industry best practices where relevant. This Report has been prepared in accordance with the Global Reporting Initiative (“GRI”) Standards 2021. This Report should be read in conjunction with the other reports in Yinson’s annual reporting suite: • Integrated Annual Report 2024: Unlocking Value. Stronger Together. • Corporate Governance Report 2024. • Yinson’s Climate Report 2021. • Yinson’s Climate Goals Roadmap 2021. FORWARD-LOOKING STATEMENTS This Report contains certain forward-looking statements with respect to Yinson’s financial position, results, operations and businesses, which we believe to be realistic at the time this Report is issued. These statements may involve risk and uncertainty as they relate to events and depend on circumstances that occur in the future. There are various factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. STATEMENT OF THE BOARD OF DIRECTORS Yinson’s Board of Directors (“Board”) acknowledges its responsibility to ensure the integrity of this Report, which in its opinion addresses all the issues that are material to the Group’s ability to create value and fairly presents the integrated performance of Yinson. The Board has applied its collective mind to the preparation and presentation of this Report and believes that it has been prepared in accordance with the <IR> Framework and addresses all material issues. The Board confirms that it has approved the release of this Report. Yinson Holdings Berhad is pleased to present our Integrated Annual Report for the Financial Year Ended 31 January 2024. This Report reflects our capability and commitment to creating sustainable value for our stakeholders.
INSIDE THIS REPORT BASIS OF THIS REPORT FYE 2024 AT A GLANCE 04 Group Highlights 06 Group Financial Highlights 08 Key Events OUR INVESTMENT CASE 12 Global Presence 14 Key Assets 18 Our Approach to Sustainability LEADERSHIP MESSAGES 20 Chairman Statement 23 Group CEO Review 33 Financial Review VALUE CREATION AT YINSON 45 Market Landscape 50 Materiality Matters 54 Strategy Review 59 Vision, Mission, Core Values, and Purpose 60 Our Business Value Creation Model 64 Risks and Opportunities 67 Trade-Offs BUSINESS REVIEWS 68 Yinson Production 76 Yinson Renewables 81 Yinson GreenTech 88 Farosson 89 Regulus Offshore SUSTAINABILITY REVIEW 92 Building Environmental and Climate Resilience • Climate Change & Carbon Management • Inclusive Energy Transition • Biodiversity Management • Environmental Management • Resource Efficiency 105 Empowering People and Communities • Occupational Health & Safety • Human & Labour Rights • Human Capital Development • Community Engagement • Diversity, Equality & Inclusion 120 Driving Sustainable Growth through Good Corporate Governance • Business Management & Performance • Corporate Governance & Business Ethics • Sustainable Supply Chain Management • Digital Transformation GOVERNANCE 131 Board of Directors 137 Senior Management 143 Corporate Governance Overview Statement 160 Other Compliance Information 162 Statement on Risk Management & Internal Control 169 Report on Audit Committee 172 Statement on Directors’ Responsibility ACCOUNTABILITY 173 Directors’ Report 183 Statement by Directors 183 Statutory Declaration 184 Financial Statements 340 Independent Auditors’ Report 344 Corporate Information 345 Analysis of Shareholdings 348 Analysis of Warrant Holdings 351 List of Properties APPENDIX 352 Sustainability Performance Data 364 Bursa ESG Performance Reporting 365 External Assurance Report 368 GRI Content Index 373 IFRS ISSB Content Index 379 List of Abbreviations ANNUAL GENERAL MEETING 380 Notice of Annual General Meeting • Form of Proxy
FYE 2024 AT A GLANCE | GROUP HIGHLIGHTS 4 5 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 GROUP HIGHLIGHTS REVENUE RM11.6 billion 84% from FYE 2023 PATAMI RM964 million 64% from FYE 2023 CORE PAT RM1.1 billion 50% from FYE 2023 PAT RM1.1 billion 94% from FYE 2023 EBITDA RM3.0 billion 68% from FYE 2023 BASIC EARNINGS PER SHARE 28.5 sen 71% from FYE 2023 FINANCIAL PERFORMANCE ESG HIGHLIGHTS AWARDS AND ACHIEVEMENTS UN Global Compact Sustainable Development Goals Reporting Disclosure Recognition Scan to view all our awards and recognitions. Deloitte Private Malaysia’s Best Managed Companies 2023 ZERO Non-compliances with environmental laws and regulations ZERO unresolved privacy and confidential data breaches 100% pre-qualified suppliers underwent detailed ESG screening Governance STRATEGIC ALLIANCES AND MEMBERSHIPS Environment >400 chargers operated and maintained 3,324.7 MWh energy delivered through chargEV chargers Facilitated ~21.28 million km travelled on electricity EFFLUENTS AND WASTE CORPORATE SOCIAL RESPONSIBILITY 207.6 tonnes waste reused, recycled or recovered CARBON EMISSIONS 2.12% Direct GHG emissions (Scope 1) 0.02% Other indirect GHG emissions (Scope 2) 97.86% Indirect GHG emissions (Scope 3) CARBON EMISSIONS BY SCOPE 175.9 tonnes CO2e/RM million (by revenue) 591.4 kg CO2e/MWh (by energy generated) 33.9 kg CO2e/BOE (by barrel of oil equivalent generated) Total GHG Emissions 2,048,433.4 tonnes CO2e ENERGY 365,593.2 MWh renewable energy generated 7.8 ppm average oil in slop water content 3,246,585.4 MWh energy consumed 10 (0.3 litres) hydrocarbon spill incidents 278.8 MWh/RM million energy intensity GREEN TECHNOLOGIES Social 75.2% Male 24.8% Female 1,592 regular employees EMPLOYEES SAFETY 7.4 company index employee engagement score 361 new hires 9.29% voluntary regular employee turnover rate RM1.91 million community investment ~4,940 lives impacted ~32 communities impacted 980 employee volunteering hours 0.06 Lost Time Injury Frequency 0.36 Total Recordable Injury Frequency CARBON INTENSITY PwC Malaysia Building Trust Awards 2023 2nd place, FBM Mid-70 Index
6 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 GROUP FINANCIAL HIGHLIGHTS Financial year ended 31 January 2020 RM million 2021 RM million 2022 RM million 2023 RM million 2024 RM million Revenue 2,519 4,849 3,607 6,324 11,646 Profit before tax 331 580 716 855 1,695 Profit after Tax and Minority Interests (“PATAMI”) 210 315 401 589 964 Share capital 1,107 1,126 1,134 2,220 2,241 Total equity 3,774 4,026 4,740 6,458 7,977 Number of ordinary shares issued 1,095 1,100 1,101 3,054 3,064 Weighted average number of ordinary shares in issue(c)(d) 1,079 2,411(g) 2,409(g) 2,707 2,906 Total assets 9,515 11,886 15,205 19,259 28,692 Total liabilities 5,741 7,860 10,465 12,801 20,715 Total borrowings 3,830 6,106 8,758 9,584 16,319 Non-recourse project financing loans(h) 2,339 2,985 4,020 3,922 4,231 Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) 770 1,236 1,402 1,782 2,993 Basic earnings per share (sen)(b)(c)(d) 19.5 7.3(g) 10.9(g) 16.7 28.5 Dividends rate (sen)(c)(d)(i) 6.0 3.0(g) 3.0(g) 2.0 2.0 Net Assets Per Share (RM)(a)(c)(d) 3.45 1.62(g) 1.91(g) 2.11 2.60 Gross gearing ratio (times) 1.01 1.52 1.85 1.48 2.05 - Excluding non-recourse project financing loans(f)(h) 0.40 0.78 1.00 0.88 1.52 Net gearing ratio (times) 0.63 1.01 1.24 1.23 1.66 - Excluding non-recourse project financing loans(f)(h) 0.01 0.27 0.39 0.62 1.13 Adjusted Revenue(e) 2,672 5,007 3,775 6,381 11,719 Adjusted Core EBITDA(e) 865 1,533 1,476 1,972 3,029 Adjusted Core EBITDA Margin (%)(e) 32.4 30.6 39.1 30.9 25.8 Adjusted Net Debt(e) 2,475 4,102 5,683 7,778 13,089 Adjusted Net Debt/Adjusted Core EBITDA (times)(e) 2.86 2.68 3.85 3.94 4.32 Notes: (a) Computed based on number of ordinary shares issued as at financial year end. (b) Computed based on weighted average number of ordinary shares in issue as at financial year end (excluding treasury shares). (c) Amount restated for FYE 2021. (d) Amount restated for FYE 2022. (e) Adjusted amount/ratio is defined as the Group’s relevant financials plus the Group’s share of relevant financials of its joint ventures and associates. (f) Computed based on total loans and borrowings of the Group less non-recourse project financing loans. (g) Amount adjusted for FYE 2022 and FYE 2021 to reflect the bonus issue of 1 bonus share for 1 existing ordinary share which was completed on 14 April 2022, the bonus element of the rights issue of 2 rights shares for every 5 existing ordinary shares which was completed on 28 June 2022 and distributions declared to holders of perpetual securities in determining the profits attributable to ordinary equity shareholders. (h) Non-recourse project financing loans refers to project financing loans where the Group’s guarantee has been released and the lenders are only entitled to loan repayments from cash flows of the projects the loan is financing, and not from any other assets of the Group. (i) Dividends rate is computed based on the financial year to which the dividend relates.
FYE 2024 AT A GLANCE | GROUP FINANCIAL HIGHLIGHTS 7 FYE 2024 11,646 2023 6,324 2022 3,607 2021 4,849 2020 2,519 REVENUE (RM million) FYE 2024 1,695 2023 855 2022 716 2021 580 2020 331 PROFIT BEFORE TAX (RM million) FYE 2024 16,319 2023 9,584 2022 8,758 2021 6,106 2020 3,830 TOTAL BORROWINGS (RM million) FYE 2024 2.60 2023 2.11 2022 1.91 2021 1.62 2020 3.45 NET ASSETS PER SHARE (RM) FYE 2024 964 2023 589 2022 401 2021 315 2020 210 PROFIT AFTER TAX AND MINORITY INTERESTS (RM million) FYE 2024 2,993 2023 1,782 2022 1,402 2021 1,236 2020 770 EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (RM million)
8 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 2023 FEBRUARY Provided EVs to Starbucks Malaysia for its corporate fleet. 2 Invested in Zeabuz for maritime autonomous solutions. 9 Signed firm contract for the Agogo project in Angola. 27 MARCH Launched Farosson, an advisory, investment, and asset management business. 1 Collaborated with Gentari and Jomcharge to allow cross access charging between the three parties. 16 Participated in Bursa Malaysia’s inaugural carbon credit auction. 16 APRIL Officially launched DC and AC chargers at Berjaya Times Square, Kuala Lumpur. 21 Signed MoUs with Wilhelmsen Ships Service, OPL Services, Mencast Marine and Zeabuz during Singapore Maritime Week. 25 MAY FPSO Anna Nery achieved first oil. 7 Piloting an offshore carbon capture and storage plant on FPSO Agogo. 21 Signed joint venture agreement with LHN Group to bring chargEV to Singapore. 29 KEY EVENTS
FYE 2024 AT A GLANCE | KEY EVENTS 9 2023 JUNE Received charter contract extension for FSO PTSC Bien Dong 01. 6 Received charter contract extension for FPSO PTSC Lam Son. 30 Hosted investor event, ‘sYnergy 2023: Inclusive Transition’. 14 Partnered with Pos Malaysia to deploy chargEV solutions at Pos Malaysia locations across Peninsular Malaysia. 22 Launched 30 by 30. 14 JULY Secured USD 230 million financing from Global Infrastructure Partners in relation to FPSO Maria Quitéria. 31 Held 30th Annual General Meeting and Extraordinary General Meeting. 13 AUGUST Entered into collaboration agreement with RRJ Capital to jointly develop energy infrastructure and technology projects globally, including through the provision of USD 300 million in financing. 18 Signed MoU with PLUS Malaysia Berhad to jointly develop DC fast charging hub along the PLUS highway. 23 SEPTEMBER Launched rydeEV Experience Centre. 9 Signed MoU with CelcomDigi to partner in the development of innovative EV services and infrastructure for Malaysian consumers. 19
10 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 OCTOBER Unveiled green energy infrastructures on Ngee Ann Polytechnic’s campus comprising an IoT-enabled smart energy management technology centre called synergy.lab, a solar farm and EV charging facilities powered by renewable energy. 4 Launched largest combined EV charging network across Singapore and Malaysia with ComfortDelGro ENGIE. 6 Provided 143 smart electric vans to Pos Malaysia towards electrifying national postal operations. 18 Signed agreement with Lazada Indonesia to design, construct, install, operate and maintain a 396 kWp solar panel project. 25 Entered into a strategic partnership agreement with Selangor Information Technology & Digital Economy Corporation (Sidec) to implement and expand sustainable initiatives in Selangor. 23 NOVEMBER Completed construction of the Hydroglyder prototype. 13 Launched Hydromover, Singapore’s first fully electric cargo vessel. 23 Nokh Solar Park started commercial operations. 3 DECEMBER Invested in leading direct air capture project developer Carbon Removal AS. 1 Forged partnership with JLand Group to drive solutions for sustainable real estate. 5 Invested in Ionada PLC to advance carbon capture technology. 7 Closed corporate loan facility of up to USD 500 million. 12 2023
FYE 2024 AT A GLANCE | KEY EVENTS 11 2024 JANUARY Signed agreement with Finusolprima to install 264 kWp rooftop solar panel system at Bekasi Factory. 4 Awarded inaugural Yinson4Youth grants to local NGOs Kelab Belia Prihatin and NYAWA. 16 Announced Malaysia’s first lease-to-own rydeEV electric motorcycle with a postpaid plan with CelcomDigi. 23 Acquired 97 MWp Matarani Project in Peru. Partnered with BEV Charging Company to expand smart EV charging infrastructure in Brunei. 30 APRIL Held naming ceremony for FPSO Maria Quitéria. 3 Shift Clean Solutions and JLand Group signed MoU to develop marine battery fabrication facility in Johor. 16 Signed Letter of Interest with Eastern Pacific Shipping to collaborate for a greener future and pioneer electric vessel developments. 18 Placed USD 500 million senior secured bond in the Nordic bond market. 19 Completed USD 1.3 billion debt financing for FPSO Agogo. 30 FEBRUARY Announced partnership to promote green urban mobility with GoCar. 23 MAR Management visit to FSO PTSC Bien Dong 01 with PTSC. 5 Completed private placement that raised RM283.2 million to fund our energy transition businesses. 29 MAY FPSO Maria Quitéria set sail for Brazil. 7 Held naming ceremony for FPSO Atlanta. 13
12 13 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 GLOBAL PRESENCE Offices and Headquarters Marketing Representations Offshore Production Assets Renewables Developments and Assets OUR INVESTMENT CASE | GLOBAL PRESENCE UNITED STATES Houston MALAYSIA Miri FPSO Helang NEW ZEALAND VIETNAM Ho Chi Minh City FPSO PTSC Lam Son FSO PTSC Bien Dong 01 BRAZIL Rio de Janeiro FPSO Anna Nery FPSO Atlanta FPSO Maria Quitéria COLOMBIA GHANA Accra and Takoradi FPSO John Agyekum Kufuor MALAYSIA Kuala Lumpur SINGAPORE INDONESIA INDIA New Delhi Rising Bhadla 1 & 2 Solar Plants Nokh Solar Plant ANGOLA Luanda FPSO Agogo NIGERIA Port Harcourt FPSO Abigail-Joseph ITALY UNITED KINGDOM London PERU CHILE NORWAY Oslo NETHERLANDS The Hague
14 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 KEY ASSETS OFFSHORE PRODUCTION FSO PTSC BIEN DONG 01 Field: Block 05-2/05-3, Vietnam Charterer: PTSC (subsidiary of Petrovietnam) Joint venture with PTSC FPSO JOHN AGYEKUM KUFUOR Field: OCTP Block, Ghana Charterer: ENI FPSO ABIGAIL-JOSEPH Field: Block OML 83 & 85, Nigeria Charterer: FIRST E&P FPSO ANNA NERY Field: Marlim Field, Brazil Charterer: Petrobras FPSO HELANG Field: Block SK10, Malaysia Charterer: JX Nippon FPSO PTSC LAM SON Field: Block 1-2/97, Vietnam Charterer: PTSC (subsidiary of Petrovietnam) Joint venture with PTSC Scan for further details on our offshore production assets, including production capacities, contract durations, and order book.
15 FPSO MARIA QUITÉRIA Field: Jubarte Field, Brazil Charterer: Petrobras Currently under conversion, on schedule for deployment in 2024 FPSO ATLANTA Field: Atlanta Field, Brazil Charterer: Enauta Currently under conversion, on schedule for deployment in 2024 FPSO AGOGO Field: Block 15/06, Angola Charterer: Azule Energy Currently under conversion, on schedule for deployment in 2025 OUR INVESTMENT CASE | KEY ASSETS OFFSHORE MARINE YINSON HERMES Vessel type: Anchor Handling Tug Supply; DPS-1 PTSC LAM KINH Vessel type: Anchor Handling Tug Supply; DPS-1 YINSON PERWIRA Vessel type: Anchor Handling Tug Supply; DPS-2 PTSC HUONG GIANG Vessel type: Platform Supply Vessel; DPS-2 Scan for details on our offshore marine assets.
16 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 RENEWABLES RISING BHADLA 1 & 2 SOLAR PLANTS Location Rajasthan, India Offtaker NTPC Limited Generation capacity 140 MW(AC)/175 MWp(DC) NOKH SOLAR PARK Location Rajasthan, India Offtaker NTPC Limited Generation capacity 190 MW(AC)/285 MWp(DC) MATARANI PROJECT Location Arequipa, Peru Offtaker Enel Generation Peru Generation capacity 80 MW(AC)/97 MWp(DC) Currently under construction, with estimated commercial operations date in 2024. Scan for further details on our renewables assets.
17 GREEN TECHNOLOGIES OUR INVESTMENT CASE | KEY ASSETS >400 installed charging stations Charging infrastructure Full software stack for charge point operations and fleet management solutions Digital 2 fully electric harbour craft vessels Marine transport Hydroglyder Hydromover 200 in EV leasing fleet Urban mobility Kia EV6 Sokon EC35 >120 in e-bike leasing fleet 31 e-bike battery swapping stations Micromobility Hyper Ryder Scan for more details on our green technologies assets.
18 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 OUR APPROACH TO SUSTAINABILITY Energy companies play a crucial role in driving an inclusive energy transition to support low-carbon economies. Paving the way for a sustainable future is a key strategy for Yinson. We believe that access to reliable and sustainable energy infrastructure is fundamental to empowering communities and driving economic growth while protecting the environment for current and future generations. SUSTAINABILITY FRAMEWORK At Yinson, we recognise the crucial role of energy infrastructure in enabling and accelerating an energy transition that accounts for the varied interests of our stakeholders. In 2023, we reviewed and refreshed our sustainability approach to reflect updated material sustainability considerations and priorities. These material matters will continue to inform our business strategies as we continue to drive a just, orderly and inclusive transition towards a low-carbon future together. Our purpose forms the basis of our approach to sustainability and the three core principles that guide our Environmental, Social and Governance (“ESG”) focus and practices. Amid shifting ESG trends, we remain steadfast towards our Climate Goals commitment to be carbon neutral by 2030 and net zero by 2050. Our Climate Goals Roadmap and Climate Report outline our strategy and progress towards achieving our Climate Goals. Yinson continues to work with all our stakeholders, especially on their most material areas of concern, to implement our sustainability agenda. These principles are underpinned by our Core Values and align with the various sustainability-related goals that Yinson is committed to, including the United Nations Sustainable Development Goals (“UN SDGs”). 30 BY 30 TARGETS While Yinson works toward improving access to affordable and clean energy and spurring economic growth, we will continue to do so in a way that is responsible towards the environment and that contributes positively to our local communities. GOVERNANCE Driving Sustainable Growth through Good Corporate Governance ENVIRONMENTAL Building Environmental and Climate Resilience SOCIAL Empowering People and Communities PURPOSE STATEMENT Our purpose is to provide reliable and sustainable energy infrastructure that empowers communities, drives economic growth and protects the environment for current and future generations. ME1 Climate Change & Carbon Management ME3 Biodiversity Management MG1 Business Management & Performance MG3 Sustainable Supply Chain Management MS1 Occupational Health & Safety MS3 Human Capital Development MS2 Human & Labour Rights MS4 Community Engagement MS5 Diversity, Equality & Inclusion ME2 Inclusive Energy Transition ME4 Environmental Management ME5 Resource Efficiency MG2 Corporate Governance & Business Ethics MG4 Digital Transformation 30 by 30 scorecard, pg 26 - 27. For the year in review, Yinson introduced 30 by 30, a single declarative set of our most material ESG targets that we are committed to achieving by 2030. The targets are closely mapped to the core Sustainability Principles: Environment, Social and Governance. They are specific, measurable, timebound, and importantly, their attainment will contribute significantly to the creation of a long-term and sustainable economy that is fair and equitable to all. These targets encompass both aspirational goals and annual targets to be maintained. Additionally, as our ambitions expand and new material areas emerge, we may review the targets to ensure that they stay relevant and aligned with the evolving landscape.
19 OUR INVESTMENT CASE | OUR APPROACH TO SUSTAINABILITY SUPPORTING THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS COMMITMENT TO UPHOLDING THE UN GLOBAL COMPACT PRINCIPLES SUSTAINABILITY GOVERNANCE The management of sustainability-related matters is integrated into our existing robust corporate governance structure. The success of our sustainability governance structure hinges on the sustainable leadership of our Board and Senior Management, which collectively form our leadership team. We have Board-level oversight and Management-level responsibility in governing sustainability matters. In 2023, we streamlined our sustainability governance by integrating the Sustainability Committee into the Management Committee, which is now renamed the Management & Sustainability Committee (“MSC”). This move enhances management efficiency and oversight, augmenting our agility to react to any emerging sustainability-related risks. Key members within MSC hold sustainability-related KPIs to ensure there is alignment with our ESG focus areas. Our continuous engagement with our stakeholders allows us to receive feedback to prioritise focus areas and identify areas of improvement, as demonstrated in our materiality assessments. Our understanding of key societal and environmental concerns allows us to proactively manage our business in an ever-evolving environment. For a more detailed understanding of the roles and responsibilities of the Board, BRSC and MSC, refer to the Statement on Risk Management & Internal Control, pg 162 - 168. Yinson believes that corporate sustainability starts with a company’s value system and a principlesbased approach to doing business. This means operating in ways that meet fundamental responsibilities in the areas of human rights, labour, the environment and anti-corruption. Yinson upholds and incorporates the 10 Principles of the UN Global Compact (“UNGC”) into our strategies, policies and procedures, establishing a culture of integrity and setting the stage for long-term success. In 2015, the UN SDGs and their accompanying targets were ratified by 193 member states at the UN Summit. Collective action from governments, businesses, organisations and societies is required to achieve the scale and ambition of the SDGs. Yinson believes in playing our role to meet these goals. The SDGs are a holistic, sustainable development framework and are important considerations in setting our sustainability strategy and targets to maximise positive impacts. Aligning with our focus to deliver sustainable energy infrastructure and solutions, we strategically align our corporate efforts towards contributing to nine SDGs across our businesses and activities, as mapped throughout this Report. We advocate for and invite businesses across our value chain to do the same and encourage their contribution to the broader SDGs. SUSTAINABILITY GOVERNANCE STRUCTURE AT YINSON Board-level oversight The Board supervises Yinson’s business model transformation towards a low-carbon economy, providing oversight and guidance for the Group-wide strategy and business affairs, including management of sustainability and climate practices. The BRSC meets quarterly to review and evaluate the effectiveness of the Group’s internal controls and risk management systems, including action and mitigation plans for identified and emerging risks. Management-level responsibility The MSC is responsible for implementing the Group’s policies, guidelines and systems to ensure effective risk management, including management of sustainability and climate risks. Within its respective areas of responsibility, the MSC is responsible for managing risks within tolerable levels with specific material metrics and targets. Board of Directors Board Risk & Sustainability Committee Management & Sustainability Committee
20 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 CHAIRMAN STATEMENT COMMENTARY BY LIM HAN WENG, GROUP EXECUTIVE CHAIRMAN On behalf of the Board, I am pleased to present Yinson’s Integrated Annual Report 2024. We continued to deliver strong financial results in the year under review, even as we focused on delivering critical energy infrastructure to communities around the world that need it most. Adaptability is key, as we navigate the evolving risks and opportunities of a rapidly changing business landscape. RM1.1 billion Profit After Tax 94% over FYE 2023 Launched 30 by 30 our flagship sustainability initiative Recommended final dividend of 1.0 sen per ordinary share for FYE 2024 Post financial year end RM283.2 million raised for Yinson Renewables and Yinson GreenTech through private placement Launched Yinson4Youth (Y4Y) our flagship youth empowerment initiative
21 LEADERSHIP MESSAGES | CHAIRMAN STATEMENT A YEAR OF EXPANSION We are pleased to note accelerated progress overall in recent years towards a clean energy future. However, we acknowledge that the transition has not been straightforward. Geopolitical instability, technological limitations, and capital and infrastructure constraints have affected the speed and pace of the transition as the world struggles to balance the need for change with energy security concerns. Failing to synchronise the reduction in fossil fuel production with consumption diminishes the world’s ability to meet net zero targets, potentially triggering price spikes in a tight market. In essence, the transition cannot take place if it is not inclusive. This unique interplay of macroeonomic factors has helped drive expansion in all our businesses in the reporting period, allowing us to make great strides towards fulfilling our purpose of providing sustainable energy infrastructure. Yinson Production’s services continue to be in strong demand, as the market is looking for providers that have an edge in emissions reduction technologies and a solid track record of on-time delivery and safety and operational performance. Concurrently, investments are being routed into developing renewable and alternative sources of energy, which has supported the progress of Yinson Renewables. Our Nokh Solar Park was commissioned in November 2023, and we have also commenced construction of our first Peru solar project, Matarani. Yinson GreenTech’s growth capitalises on the megatrend of electrification. In line with this megatrend, we have developed a suite of integrated services which has received enthusiastic take-up from parties eager to decarbonise. DELIVERING SOLID FINANCIAL RESULTS In FYE 2024, the Group delivered a strong set of financial results, recording higher revenue of RM11.6 billion (FYE 2023: RM6.3 billion) mainly driven by the commencement of Engineering, Procurement, Construction, Installation and Commissioning (“EPCIC”) business activities for FPSO Agogo and commencement of operations for FPSO Anna Nery. Correspondingly, profit after tax (“PAT”) was RM1.1 billion, an increase of 94% compared to FYE 2023. We continued to receive strong support from the investor community and our shareholders. On 29 March 2024, we completed an accelerated book-building exercise to place out 120 million new ordinary shares to a selected group of institutional investors. Yinson raised RM283.2 million from the private placement, which will primarily be used to expand our renewables and green technologies businesses. REWARDING OUR SHAREHOLDERS We have distributed RM58 million in dividends for FYE 2024, representing 2.0 sen per ordinary share declared for FYE 2024. Including the final dividend of 1.0 sen per ordinary share in respect of FYE 2023 paid in the current financial year, the total distribution to shareholders in FYE 2024 amounted to RM87 million. In addition, we have recommended a final dividend of 1.0 sen per ordinary share for FYE 2024 for shareholders’ approval at the forthcoming 31st Annual General Meeting (“AGM”). On 22 March 2024, we announced a proposal to undertake the establishment of a dividend reinvestment plan (“DRP”), which provides shareholders the option to reinvest cash dividends in new Yinson shares instead of receiving it in cash. The final dividend for FYE 2024 will be part of this DRP, subject to shareholders’ approval at the upcoming AGM. If approved by shareholders in the forthcoming AGM, the DRP will allow shareholders to enhance and maximise the value of their shareholdings by investing in new shares that may be issued at a discount to market prices, and are free from brokerage fees and other transactional costs. Concurrently, it could provide the Group with the flexibility to strengthen our capital position to fund our working capital requirements. A FIRM COMMITMENT TO GOOD CORPORATE GOVERNANCE We took several important steps to enhance our governance structure throughout the year, in order to ensure that our business decisions are underpinned by a robust governance process. Following the greater autonomy of decision-making delegated to our respective businesses, the Board established Advisory Boards for them – Yinson Production, Yinson GreenTech and Yinson Renewables – in September 2023. The Advisory Boards, which convene on a quarterly basis, provide effective oversight of the respective business models and function as a forum for robust debate and in-depth deliberations on key strategic, financial and operational issues. Also, to further institutionalise and reinforce the management and oversight of sustainability at management level, our Sustainability Committee has been integrated into the Management Committee, which is now renamed as the Management & Sustainability Committee (“MSC”). This follows the steps taken at Board-level in the previous reporting period, where our Board Charter was updated to recognise the renaming of the Board Risk Management Committee to the Board Risk & Sustainability Committee.
22 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 During the year, we were pleased to welcome Sharifah Munira and Gregory Lee to the Nominating & Remuneration Committee and Board Risk & Sustainability Committee respectively, where we believe they will provide their wide experience and expertise to guide the committees. Strong and independent Board Committees are central to our governance structure, and I am confident that these new appointments will contribute to positive outcomes that add value to our shareholders. Our Offshore Marine business, Regulus Offshore, has also seen a change in leadership. We are pleased to appoint Liaw Thong Jung as Chief Executive Officer of Regulus Offshore, bringing with him a a wealth of market experience to ensure that the business continues to deliver value to our shareholders. Thong Jung replaces Lim Chern Wooi, who effectively stepped down as CEO on 10 May 2024. Chern Wooi had helmed Regulus Offshore for 10 years, establishing it as a key player in the OSV market with an exceptional performance and safety track record. We sincerely thank Chern Wooi for his contribution and wish him all the best in his future endeavours. In line with our firm commitment to embracing corporate governance and transparency, we have enhanced our existing whistleblowing channel with an independent platform this financial year, with multi-language support for the countries we operate in. We are also in the process of implementing an external training platform to engage with our external stakeholders, such as our suppliers, on compliance-related topics. This is an important part of building a sustainable supply chain, which will help to insulate our businesses against supply chain risk. EMBRACING OUR RESPONSIBILITY TO OUR LOCAL COMMUNITIES As we navigate through a dynamic global landscape, it becomes increasingly imperative for organisations to not only set ambitious goals but to also align their efforts towards achieving them. Thus, I am delighted to introduce Yinson’s flagship sustainability initiative, 30 by 30, which embodies our commitment to sustainable growth and value creation. 30 by 30 outlines 30 of our most material targets that we aim to achieve by 2030. These targets encompass a diverse range of objectives spanning environmental stewardship, social responsibility, and operational excellence. By setting clear and measurable targets, we ensure that our entire organisation is aligned on driving towards these collective goals. We have increased our investments in building our local communities, both by prioritising the local workforce and supply chain, as well as through corporate social responsibility projects. Bringing value to our communities is part of our purpose and vital to promoting long-term growth. Our newer offices in Brazil and Angola have been especially passionate about local environment and community-focused projects, collaborating with their local community partners to bring positive change such as through tree-planting, beach cleaning and educational work. In Ghana, where we have won numerous recognitions for our excellent community projects, we have increased the number of scholarships under the Yinson Scholars Programme, built a new computer lab and canteen, launched the Yinson Girls Education Programme, organised the Yinson Reading and Spelling Bee and much more. I am personally very excited about Yinson4Youth, or Y4Y, our flagship youth development initiative which kicked off in Malaysia. The inaugural Y4Y Grant was disbursed to facilitate two excellent youth-led projects, one to develop a mangrove nursery, and the other to conduct much needed research into the mental health needs of Malaysia’s indigenous youth community. To support employee involvement in CSR activities, we launched employee voluntary time-off, which allows employees to take up to four days of volunteering time-off annually. A STRONG AND STABLE OUTLOOK We remain optimistic about the future of our businesses, as we are confident that our investment into building our foundations on sustainability will hold us in good stead amid the many uncertainties. Such foundations have allowed us to be agile, making sound decisions that capitalise on the opportunities while managing risks. As a pioneer on many fronts, we are bound to make some mistakes. At Yinson, we embrace failure because we know that learning from our mistakes allows us to move forward stronger and wiser than ever. We are grateful for a wonderful network of stakeholders that work with us towards our shared goal of a better future. These include local governments, NGOs, fellow corporates, communities, the financial community and, of course, our own employees. With synergies gained from the wealth of experience of all parties, shared long-term perspectives and a commitment to doing what is right, we are confident that we can continue to grow and succeed while making a positive impact on the world. ACKNOWLEDGEMENTS I extend my heartfelt thanks to everyone who has believed in us and contributed to our success. First, to my fellow Board members for your wisdom and counsel in guiding the Company forward. We have spent many hours together deliberating Yinson’s strategies, and I believe our collective input has helped to put the business on a winning trajectory. To our shareholders and investors, we thank you for your trust in us. To our clients and partners, we are grateful for the opportunity to work with you. For the communities where we operate, thank you for welcoming us to your neighbourhoods. And finally, to our employees and their families, it has been a very demanding year, and I know you have worked very hard to bring the Company forward. We look forward to continuing our work together so we can affect change for a better future.
23 LEADERSHIP MESSAGES | GROUP CEO REVIEW GROUP CEO REVIEW COMMENTARY BY LIM CHERN YUAN, GROUP CHIEF EXECUTIVE OFFICER Amid multiple macroeconomic headwinds including geopolitical uncertainties, inflation and tightened financial conditions, Yinson remained focused on delivering on our commitments in 2023. Among key achievements during the year are the timely progression of our three FPSO projects under construction, delivery of our first utility-scale renewables construction project and launch of the prototypes of two fully electric marine vessels. Our focus on delivery will continue into 2024, which we believe, together with strong strategic partnerships, will put us on our greatest growth trajectory yet. The strong focus on deliveries will also mean giving big investments a break until these deliverables are met and the start of the cash flows are seen. In 2023 and to date, Yinson focused on… • Delivered FPSO Anna Nery. • Completed execution phase for FPSO Atlanta and FPSO Maria Quitéria. • Achieved timely progress on the construction of FPSO Agogo. • Achieved commercial operations for Nokh Solar Park. • Acquired 97 MWp Matarani Project • Launched Hydroglyder and Hydromover prototypes. • Launched our full suite of integrated solutions for the electrification of the transportation system. • Secured over USD 2.8 billion in financing towards delivering our offshore production projects. DELIVERY... • Financial partnerships including with RRJ Capital, Global Infrastructure Partners and EIG Global Energy Partners. • Strategic partnerships including with Goal Zero Consortium partners, LHN Group, CelcomDigi, CDG Engie, Gentari, Jomcharge, BMW Malaysia and BYD Malaysia. • Commercial partnerships including with UEM Edgenta, Pos Malaysia, Proton’s Pro-Net, EcoWorld Malaysia, Iskandar Investment Berhad and Jurong Port. • Research partnerships including with Ngee Ann Polytechnic, National University of Singapore, Singapore University of Technology & Design, Technology Centre for Offshore and Marine Singapore and Singapore Institute of Technology. COLLABORATION... • Piloted offshore carbon capture and storage plant on FPSO Agogo. • Invested in carbon management companies Carbon Removal AS and Ionada PLC. • Led innovation on marine battery and autonomous solutions. • Fully deployed Project Polaris on FPSO Helang. • Launched the Yinson Open Data and AI Project. • Launched digital marketplace platform to facilitate integrated ecosystem of electric transportation across land and sea. AND INNOVATION
24 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 DRIVING A JUST, ORDERLY AND EQUITABLE TRANSITION Growing global momentum is accelerating the energy transition with the new peak demand for fossil fuels estimated to take place before 2030. However, this acceleration is accompanied by a collective consensus that a just, equitable and orderly transition is critical, emphasising the importance of meeting development needs in a sustainable way to expedite progress. Conventional fossil fuels are likely to remain a significant part of the energy mix until 2050, even on a 1.5° Celsius pathway. In fact, investment in a broad energy mix, including oil & gas, is needed to ensure energy security across various economies and sectors. Through our businesses, Yinson is actively involved in providing solutions that contribute to the acceleration of the energy transition, while safeguarding energy security and affordability. We believe that the current market is favourable to the FPSO business, with strong potential to secure attractive new projects and grow further. To capitalise on these opportunities, we believe it is important to strengthen Yinson Production’s capital base and work with strategic partners that appreciate that business’s platform value. Accordingly, our FPSO business has been swinging into high gear, and will continue to do so while market conditions are right. Cash flows have been directed back into the business to ensure that our assets are efficient, low-emission, and futureproof. We are also cognisant of tail risks related to traditional energy and will factor such considerations into our decisionmaking as a Group. Thus, we made several strategic decisions that allow us to capitalise on present FPSO market opportunities, believing that this would bring about the greatest value to all our businesses over the longer term. As our businesses pursue their growth plans, our asset management business, Farosson, will supply further capital pools to invest in businesses, both internal and external, which aligns with its focus on sustainable investments. In other words, we are continually shifting gears on our various businesses according to market conditions, while making sure we stay true to our north star of advancing an inclusive transition and keeping our long-term targets within reach. One such target is to have at least 30% of equity in non-oil-based FPSO activities by 2030. We are tracking well towards that target, with RM1.0 billion invested into Yinson Renewables and Yinson GreenTech up to FYE 2024, which represented about 13% of the Group’s total equity as at 31 January 2024. Our progress towards this target over the past three years since making this commitment is depicted below. REACHING A TURNING POINT IN OUR EXPANSION JOURNEY The past three years have marked a period of intense expansion for Yinson as we took on more FPSO projects and embarked into renewables and green technologies. From a single FPSO asset under construction in the early years, we reached a peak of four FPSO projects being constructed at one point, and three currently. In the current economic climate, the Group and all our businesses are aligned to prioritise the delivery of these three projects, understanding that doing so is the key to greater and sustained future income. 2024 represents a turning point in our expansion phase. As FPSO Atlanta, FPSO Maria Quitéria and FPSO Agogo commence their charter periods over the next year or two, we believe this will transition us into a phase of stable growth, where the Group is poised to receive steady, contracted income streams for the next few decades. This is the capital that will boost our liquidity to grow across all our portfolios, while also enabling us to reward our shareholders commensurably for their continued support throughout our expansion phase. This is, by far, the biggest CAPEX cycle that Yinson has embarked on, in our history. PERCENTAGE OF EQUITY INVESTED INTO OUR GREEN BUSINESSES* Green investments Other investments FYE 2022 TARGET 2030 4% FYE 2023 9% FYE 2024 13% 30% * Represents the proportion of total equity of Yinson Renewables and Yinson GreenTech in relation to the total equity of the Group.
25 LEADERSHIP MESSAGES | GROUP CEO REVIEW SUSTAINABILITY AND ESG: A FOUNDATION FOR STRONG DECISION-MAKING The increasing centrality of Environmental, Social & Governance (“ESG”) to the global and corporate agenda is causing attitudes towards ESG to undergo a profound rationalisation. In many boardrooms, ESG is a subject that is both essential and contentious. Regardless of the rhetoric, Yinson continues to stay true to our purpose – we are committed to investing into the energy transition and our long-term goals remain intact. We believe that incorporating ESG analysis alongside traditional financial factors adds to our holistic understanding of risks and opportunities, leading to long-term value. ESG risks, as reflected in our double materiality assessment, are some of Yinson’s biggest risks, and could have a significant impact on our long-term performance and profitability, including our ability to secure new capital. Thus, we are encouraged that our ESG performance reached new heights in 2023, acknowledged, among others, by Morningstar Sustainalytics, S&P Global, Institutional Investor, UN Global Compact Malaysia and Brunei (UNGCMYB), Deloitte Private and PwC Malaysia. Our sustainability ratings and recognitions affirm our sustainability leadership and position among the best-managed companies globally. While megatrends are volatile and uncertain, our strong fundamentals, based on sustainability principles, have been and will continue to be the key to our ability to read and adapt to the uncertainties of our macro environment. We launched our flagship sustainability initiative, 30 by 30, in June 2023. These are 30 of our most material targets that we have committed to reach by 2030, and for which we are accountable to all our stakeholders. As at FYE 2024, we are pleased to have made good progress on our targets, as depicted in the scorecard on the next page. Creating sustainable shareholder value is a key strategy for us. This demonstrates our ability to provide steady returns and builds the confidence of our investors and shareholders, who have provided strong support over our transformative years. Throughout our various transformation phases and periods of economic volatility, we have maintained a steady return to our shareholders, as shown below. We thank our valued shareholders for aligning with our vision, and for supporting us as we transition. From our continuous engagement with our shareholders, we understand the need to look not just at longer term strategies, but account for short-term wins too. Therefore, we have started embarking on strategies to unlock value earlier, which can lead to our ability to pay more dividends. Interim dividend Special dividend Final dividend Share buy-backs YINSON’S SHAREHOLDER RETURNS SINCE FYE 2011 RM1.2 billion in shareholder returns RM793 million in dividends RM369 million in share buy-backs * Final dividend to be tabled for shareholder approval at the forthcoming 31st AGM. FYE 2011 FYE 2012 FYE 2013 FYE 2014 FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1,884 5,009 5,509 12,910 16,392 21,791 159,077 43,527 43,311 43,221 42,603 42,599 28,975 29,067 58,203 190,753 58,294 4,034 21,324 21,302 49,309 81,514 21,538 31,196 43,452 21,705 21,791 12,633 29,070* RM’000
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