41 INTEGRATED ANNUAL REPORT 2025 LEADERSHIP MESSAGES | FINANCE AND STRATEGY REVIEW SPURRING GROWTH ON A MUCH STRONGER CAPITAL STRUCTURE With the infusion of new capital, Yinson Production is positioned for substantial growth in the near- to mid-term, driven by a buoyant FPSO market, our dominant position in the mid-sized FPSO segment, and the strength of our platform and management team. The first oil milestones for FPSO Maria Quitéria and FPSO Atlanta in 2024 have further cemented our track record and boosted market confidence in our capabilities. We target to significantly lift Yinson Production’s Adjusted Enterprise Reporting EBITDA within the next five years, supported by measures to accelerate growth, strengthen the balance sheet, and enhance equity returns. Market landscape, pg 42; Yinson Production Review, pg 58. The transaction will significantly deleverage Yinson Production, providing more financial flexibility to pursue projects aligned with our strategy. Following the issuance, YHB’s gearing ratios are expected to be halved, as illustrated below. BUILDING OUR NEXT ENGINE OF GROWTH In line with our strategic plans, our most mature and independent business, Yinson Production, has unlocked significant value, allowing it to be self-funding for growth moving forward. It was with this far-sighted outcome in mind that we diversified into renewables and green technologies five years ago. Both these businesses have gained sizeable traction since their respective start-ups, and we regard them as the Group’s second engines of growth. Renewables is the lowest-cost source of new electricity generation, and electrification of transportation is central to global decarbonisation strategies. Consequently, the opportunities to participate in this space, and lead it, are solid. Market landscape - Yinson Renewables, pg 43; Market landscape - Yinson GreenTech, pg 44. However, the energy transition faces rising costs, technological complexities, and broader systemic challenges. Achieving a holistic transformation requires strategic capital deployment, improved business processes, regulatory adjustments, and sustained political and public support in the face of competing economic and societal priorities. Acknowledging these fluctuating market factors, we are growing our renewables and green technologies businesses in a measured manner, ensuring a balanced approach to risk and opportunity, while steadfastly supporting the energy transition in an inclusive way. To this end, Yinson Renewables adapted its strategy this year by supplementing its pipeline with selected mergers & acquisitions (”M&A“) activity to facilitate more predictable near-term cash flows. Yinson GreenTech also took bold steps to restructure itself to focus on core areas and cut out redundancies. CLOSING REMARKS In today’s ever-changing business environment, adaptability and decisiveness are essential to our success. Yinson remains steadfast in refining our strategies to address evolving risks and opportunities while staying true to our commitment to ensuring energy security for countries and communities. This commitment drives our balanced approach to growth − combining innovation and disruption with sound governance and data-driven decision-making. We are confident that these strategic choices will enable us to effectively manage key risks while focusing on the most promising opportunities. In the past five years, we focused on delivering our projects and reducing execution risks and thereby did not take on major new projects. With most of our FPSOs delivered, and new growth capital incoming, we are now in a period of consolidation to ensure we put the right capital structure in place for our next phase of growth. In managing liquidity, we are strategically reprofiling our debt repayments to optimise debt maturity over the next five years through 2029, including plans to refinance FPSO Maria Quitéria. We are also fostering stronger strategic partnerships with capital providers through a range of offerings from our capital stack – from secured debt, junior financing and minority equity interests at the asset level to corporate debt and perpetual securities, mezzanine financing and equity at both platforms and Group-level. Yinson Renewables Review, pg 66; Yinson GreenTech Review, pg 70. Debt to equity/gearing (illustrative) Post-RCPS Pre-RCPS Gross Debt/Equity 2.04 1.31 Net Debt/Equity 1.69 0.73
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