Yinson Holdings Berhad Yinson Holdings Berhad Corporate Presentation October 2017
Overview of Yinson Key Information Core Businesses - O&G Operations Yinson Holdings Berhad (“Yinson”) is the 6 th largest independent Production 5 FPSOs FPSO leasing company globally Floating Fleet of: 1 FSO Production, Vessel and 5 FPSO vessels (Floating Production Storage and Offloading) Marine Services Storage & Crew 1 FSO vessel (Floating Storage and Offloading) Management Offloading 1 Platform Supply Vessel (PSV) Headquartered in Malaysia with key offices in Singapore, Oslo, Nigeria, Solutions 3 Anchor Handling Tug Supply Gabon, Vietnam and Ghana Vessels Listed on Bursa Malaysia with market cap of MYR 3.83 billion (AHTS) (c. USD 893 million) as of July 12, 2017 Vessel & Crew Management Yinson is now a full-fledged FPSO company. Completed the divestment of all its non-oil & gas business segments in July 2016 Latest Developments In June 2017, FPSO John Agyekum Kufuor achieved provisional acceptance and started 1. June 2017 receiving charter rates FPSO John started The USD 3.2 billion FPSO contract (USD 2.54 billion firm period + c.USD 717 million option receiving charter rates period) was awarded by ENI Ghana Exploration and Production Ltd in 2015 2. On 3 July 2017, Yinson announced a potential offering of a 26% stake in FPSO John to July 2017 form a strategic alliance with a Japanese consortium comprising of Sumitomo Potential Strategic Alliance Corporation, Kawasaki Kisen Kaisha Ltd (K Line), JGC and Development Bank of Japan with Japanese Investors 3. April 2017 In April 2017, Yinson was awarded a USD 1 billion FPSO contract from Talisman Vietnam 07/03 (a wholly-owned subsidiary of Repsol) Won USD 1 Billion FPSO Yinson will be partnering PTSC in the USD 1 billion FPSO contract from Talisman Vietnam. Contract from Repsol Yinson has a 49% stake in the proposed JV Subsidiary This is for the supply of a FPSO for the Ca Rong Do field development in Vietnam 1 1 1
Company Strategies Company Strategies 1. High Quality Counterparties & 4. Strategic Partners Strong Local Content 2. Application in Operating Countries Robust Contractual Terms & Termination Protection. No Oil Price or Reservoir Risk 5. Winning Contracts With Innovative Solutions 3. Optimize Capital & Funding Structure 2 2 2
Key Credit Strengths 1 5 Well-Positioned Within O&G Life Cycle Long Term Contracts 5 1 6 2 6 Strong Counterparties Experienced Management Team 2 Key Credit Strengths 3 7 7 Robust Contract Terms Supportive Shareholder Base 3 8 4 4 8 Prudent Track Record of Operations Ample Financial Flexibility 3 3 3
Well-Positioned Within O&G Life Cycle 4 4
Offshore Oil & Gas Field Lifecycle Offshore Oil & Gas Field Lifecycle Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Seismic & Survey Exploration & Appraisal Development Production Decommissioning • Wildcat wells drilled to • Pre-FEED and FEED • Geological & Geophysical • Extract, process and • Decommissioning of end assess studies export Mapping via seismic of field infrastructure survey Hydrocarbon • Appraisal wells assess the • Fabrication and • Reuse, recycle, dispose • Obtain a right to explore a procurement • Brownfield development potential of any discovery and Injection wells Block or area made during exploration Asset Class Well Intervention Pipe Laying Vessels Drillship Crane Vessels Crane Vessels Accommodation Units Semi-subs Pipe Laying Vessels Accommodation Units Seismic FPSO Jack Up Accommodation Units Decommissioning Vessels FSO AHTs AHTs AHTs MOPU 5 5 5
Share Price – Resilient Despite Oil Price Fallout Global Oilfield Service Sector Stock Price Performance 160 140 Share Price* (Rebased to 100) 120 +5.8% 100 80 (33.1%) 60 (57.2%) (55.9%) 40 (64.0%) 20 (81.5%) 0 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 EPC OSV Rigs / Drilling FPSO Brent Yinson (Source: Factset – Data from 01 June 2014 to 30 June 2017) *Share price for each sector is weighted by Market Cap Methodology: The share prices (weighted by Market Cap) from the top 10 companies ranked by fleet size in each sector (OSV, Rigs/Drilling, FPSO) were used to create this chart. Companies were excluded if they were privately held, or if the listed company was heavily diversified (e.g. CNOOC and Swire were omitted from the OSV data). As the EPC sector does not have a “Top 10 companies by fleet size”, data from 23 publicly listed EPC companies wer e used. 6 6 6
Overview & Outlook of Global FPSO Industry FPSO Typical Deployment Global FPSO Fleet Status Tanker-Offloading Brazil, West Africa, South East Asia and the North Sea, accounting Buoy Production Platform for 76% of the total number of installed FPSO globally FPSO Out of the 20 FPSO vessels on order, 12 are to be deployed in Brazil, 4 in West Africa, 3 in South East Asia and 1 in the North Sea. Injection Lines As of April 21, 2017, there are 171 FPSO vessels in active employment, with another 23 FPSO vessels available for hire and Existing Well Centers 1 FPSO vessel in long term repair. FPSO unit is a floating vessel used by the offshore oil and gas industry for the production, the storage and for processing of hydrocarbons Source: Energy Maritime Associates (EMA) Floating Production Report Data – Q2 2017, 21 April 2017 FPSOs can be a conversion of an oil tanker or a new vessel built specially for the application Popular for its mobility, once an existing field has been depleted an FPSO can then be refurbished, relocated and reused for production in another field. 2017 - 2021 FPSO Charter Contract & Awards Forecast In 2016: ✓ 11 total Floating Production System contracts awarded: 3 FPSOs, 7 FSRUs, and 1 Production Semi. ✓ 3 FPSOs were ordered, the lowest level going back more than 20 years. In April 2017, Yinson entered into a time charter contract with Talisman Vietnam 07/03 (a wholly-owned subsidiary of Repsol) for the provision of a FPSO to the Ca Rong Do field development in Vietnam. Looking ahead, EMA forecasts new FPSO vessels orders of 35 – 70 from 2017 to 2021. 30 25 17 20 15 15 13 15 10 11 26 11 10 10 21 10 20 8 14 14 14 12 12 11 11 5 9 8 7 7 7 7 6 4 3 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F FPSO Awards Low Case Mid Case High Case Source: Energy Maritime Associates (EMA) – January 2017 7 7 7
Strong Counterparties 8 8
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