CONTENTS
About Deleum
Corporate Updates
Financial Highlights
Highlights
Business Focus
“As a forward thinking and future-focused organisation,Deleum is always on the lookout for new growth opportunitiesto power our progress and deliver lasting value to ourshareholders and stakeholders.”
CORPORATESTATEMENT
To Provide Sustainable Growth
and Enhance Stakeholders’ Value
To be the Market Leader in our Operating Segments
domestically and to establish regional presence by 2015
INTEGRITY
Respect, Honesty, Ethics.
PROFESSIONALISM
Accountability, Teamwork, Communication.
HEALTH, SAFETY & ENVIRONMENT
Healthy/Balanced Lifestyle, Safety, Environment.
EXCELLENCE
Quality, Deliverance, Rewards.
5
Overview
• Established in 1982
• Listed on the Main Market of Bursa Malaysia in 2007
• PETRONAS Licensed Service Provider
Our business
• Evolved from a Product Orientedbusiness to an Integrated Solutions provider.
• Focused on 3 core business segments
Power and Machinery (P&M) Oilfield Services Maintenance, Repair and
Overhaul (MRO)
Our competencies
• Recorded 3.81M LTI Free Man Hours as of 31 March 2015 (since 25 August 2012)
• Staff strength: Approximately 900employees as of 31 March 2015
• First Training Well Facility commissioned at Asian Supply Base in Labuan, Malaysia
• First wireline company in Asia to receive OPITO - Competence Management System Certification (OPITO-CMS)
6
ABOUT
DELEUM
7
OILFIELD SERVICES
Provision of gas turbine packages
Supply of gas turbine parts
Gas turbine overhaul, maintenanceand technical services
Combined heat and power plant
Supply, repair, maintenance and installation of valves and flow regulators
Other production related equipment and services
POWER AND MACHINERY
MAINTENANCE, REPAIR AND OVERHAUL (MRO)
Provision of wireline equipment and logging services
Integrated wellhead maintenanceservices
Asset Integrated Solutions (A.I.S.)
Integrated Chemical Solutions
Other oilfield products and technical services
Decommissioning of platforms and wells
Repair, servicing, maintenance andoverhaul of motors, generators,transformers, pumps
Integrated corrosion, inspection and mitigation for surface preparation
Composite repair and structural integrity
Conferred Panglima Mahkota Wilayah (PMW) awardwhich carries the title “Datuk” on 1 February 2015(Federal Territory Day)
8
Updates on our Board of Directors
CORPORATE
UPDATES
Appointed as Independent Non-Executive Director aswell as the member of the Joint Remuneration &Nomination Committee and Risk Committee of DeleumBerhad with effect from 1 January 2015
FINANCIAL
HIGHLIGHTS
10
399.0 396.3 473.2 478.0 657.3
37.6
45.7
67.5
73.3
92.0
23.2
29.0
44.5
49.6
59.3
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
2010 2011 2012 2013 2014
PB
T/
PA
T A
fter N
CI (
RM
millio
n)
Reven
ue (
RM
millio
n)
Revenue PBT PAT After NCI
REVENUE / PROFITS
(All figures in RM’000 unless otherwise stated)
PROPERTY, PLANT AND EQUIPMENT NET CURRENT ASSETS
GROWTH IN SHAREHOLDERS’ EQUITYEMPLOYEES
456510
585
730
869
0
200
400
600
800
1000
2010 2011 2012 2013 2014
No
. o
f E
mp
loyee
214193
265
317
393
130108
157
210245
84 85108 107
148
0
100
200
300
400
2010 2011 2012 2013 2014
(R
M m
illio
n)
Current Assets Current Liabilities Net Current Assets
19 19 18 189
75 81 80
116
222
94 100 98
134
231
0
40
80
120
160
200
240
2010 2011 2012 2013 2014
(R
M m
illio
n)
Properties Equipment Total Fixed Assets
11FINANCIAL
HIGHLIGHTS
(cont’d)
173 189
216 242
275 13.5
15.4
20.6 20.521.6
-
5.0
10.0
15.0
20.0
25.0
-
100
200
300
400
2010 2011 2012 2013 2014
RO
E (
%)
Sh
areh
old
ers'
Eq
uit
y
(R
M m
illio
n)
Shareholders' Equity Return on Shareholders' Equity (ROE)
TOP LINE ANALYSIS
Revenue for FY2014 increased by RM179.3 million or 37.5%
as compared to the corresponding financial year.
P&M:
RM101.5 million ( 27.0%)
OS:
RM71.3 million ( 94.8%)
MRO:
RM6.6 million ( 24.1%)
FY2014 RESULTS
Due to higher revenue from retrofitprojects, exchange engines, fieldservices, and repair and maintenanceof valves and flow regulators
Due to higher slickline and oilfieldchemical activities
Due to improved contributions fromboth motor and generatormaintenance, and corrosion treatmentrelated services of RM3.8 million andRM2.8 million, respectively
BOTTOM LINE ANALYSIS
PBT for FY2014 increased by RM18.7 million or 25.5% as
compared to the corresponding financial year.
P&M:
RM6.1 million ( 9.9%)
OS:
RM21.0 million ( 288.4%)
MRO:
RM7.2 million ( 383.5%)
Increase in line with the increasein revenue but at lower quantumas FY2013 results benefited froman one-off marketing fee of RM9.4million received in connection withthe provision of an offshore facility
Due to increased slickline andoilfield chemical activities
Due to less favorable margins andhigher operating expenses tosupport the business expansion
12
REVENUE/PROFITS
478.0
657.3
73.3
92.0
49.6
59.3
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
FY2013 FY2014
PB
T/
PA
T A
fter N
CI (
RM
millio
n)
Reven
ue (
RM
millio
n)
Revenue Profit Before Tax PAT after NCI
SEGMENTAL RESULTS
FY2014RM’000
FY2013RM’000
Changes%
Power and Machinery 67,881 61,783 9.9%
Oilfield Services 28,301 7,286 288.4%
MRO (5,298) 1,869 (383.5%)
Total Segment Results 90,884 70,938 28.1%
Segment ResultsFY2014
Segment ResultsFY2013
13
SEGMENTAL
REPORTING
– FY2014
P&M
87.1%
Oilfield
Services
10.3%
MRO
2.6%
P&M
70.6%
Oilfield
Services
29.4%
* MRO is in loss making position
DIVIDEND POLICY
Deleum’s dividend policy
is of distributing gross
dividend of 50% of the
Group’s annual profit
attributable to the equity
holders of the Company,
subject to the availability
of adequate distributable
reserves, operating cash
flow requirements,
financial commitments,
expansion plans and other
relevant factors.
DIVIDEND
DIVIDEND HISTORY - ADJUSTED
14
FINANCIAL YEAR ENDED 31 DECEMBER FY2013 FY2014
Par Value (RM) 1.00 0.5
Total dividend (sen) 17.0 7.5
Total share capital (no. of shares) 150,000,000 400,000,000
Total dividend payout (RM) 25,500,000 30,000,000
COMPARISON OF DIVIDEND PAYOUT FOR FY2013 & FY2014
* Adjusted dividend per share for the financial years 2007 to 2013 is based on the enlargedshare capital of 400 million ordinary shares.
1.00 1.25 1.250.88
1.251.88
2.25 2.50
2.00 1.50 1.752.00
2.25
3.75
4.13
5.00
3.00 2.75
3.00 2.88
3.50
5.63
6.38
7.50
8.84
11.00 12.00 11.50
14.00
22.50 25.50
30.00
1.00
5.00
25.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
2007 2008 2009 2010 2011 2012 2013 2014
To
tal
Div
iden
d P
aid
(R
M m
illio
n)
Ad
juste
d D
ivid
en
d p
er S
hare (
sen
)
First Interim Second Interim Total Dividend Paid
• The establishment of LTIP, a share incentivescheme made available to eligible employees, wasapproved by the shareholders at the previous AGM2014.
• The purpose of LTIP is to retain, motivate andreward employees to sustain a high performancelevel while instilling a sense of loyalty to the Group.
• Up to 10% of the issued and paid-up share capitalof Deleum (excluding treasury shares, if any) is tobe granted to eligible employees.
• LTIP was implemented with effect from 10 October2014.
• On 2 March 2015, we had made the first grant of2,396,500 ordinary shares of RM0.50 each inDeleum to the selected eligible employees of theGroup.
UPDATES ON LONG TERM INCENTIVE PLAN (LTIP)
16
HIGHLIGHTS
• Deleum Oilfield Services Sdn. Bhd., had in FY2013,received letters of award from various PSCoperators under a joint tender exercise for theprovision of slickline equipment and services forPSC operators’ drilling programmes and productionoperations.
• Number of units awarded against tendered : 46/86or 53.5%
• In FY2014, we successfully deployed 53 slicklineunits as compared to 26 slickline units operating inprevious financial year.
• The greater utilisation of increased slicklineequipment is expected to improve the OilfieldServices segment’s results being anticipated tomaterialise in FY2015.
UPDATES ON SLICKLINE CONTRACTS
17
HIGHLIGHTS
• The Chemical business unit focuses on developingintegrated chemical solutions through research anddevelopment as well as provision of services forproduction enhancement, flow assurance and wellintegrity.
• Total number of chemical solutions developed in-house amounted to 10 chemical solutions, including2 new chemical solutions which were introduced inFY2014:- SCALE-FREE : removal of pipeline scale- DEL-PERSE : improvement of efficiency of
pigging and wax cutting operations
• Penetration into the international market- secured a well stimulation contract in Indonesia
in FY2014
UPDATES ON CHEMICAL BUSINESS
18
HIGHLIGHTS
• Deleum Primera Sdn. Bhd., had on 18 November2014, received the Letter of Awards fromPETRONAS Carigali Sdn. Bhd. for the provision ofpainting and alternative blasting for PeninsularMalaysia and East Malaysia operations.
• The tenure of the contract is for 2 years with theoption to extend for additional 1 year until 2017.
• The scope of works awarded include:- Package B: Sponge Jet Blasting- Package C: Bristle, Wet Abrasive and Vacuum
Blasting
PROVISION OF PAINTING AND ALTERNATIVE BLASTING CONTRACT
19
HIGHLIGHTS
• Solar Turbines Incorporated (SOLAR) has via itssubsidiary, Solar Turbines International Company(STICO) established a joint-venture with Deleumvia its 19.45% equity participation in TurboservicesOverhaul Sdn. Bhd. (TOSB) on 30 March 2015.
• The partnership with SOLAR will:
- strengthen Deleum’s business ties with SOLARand further fortify SOLAR participation andinvestment in the domestic market;
- improve TOSB’s ability to repair and overhaul awider range of SOLAR equipment in Malaysia;and
- enable Deleum to underpin its strength intechnology know-how through exchanging ofskills and knowledge with SOLAR.
SOLAR’S EQUITY PARTICIPATION IN TOSB
20
HIGHLIGHTS
• Deleum was awarded Local Oilfield ServicesCompany of The Year by The Oil & Gas Year(TOGY) on 27 April 2015.
• Award was given following the evaluation by TOGYon local oilfield services companies’ businessexpansions and contributions made within the localoil & gas industry.
• The award ceremony was held in conjunction withthe official book launch of the TOGY 2015 (MalaysiaEdition), published in partnership with MPRC, MGA,MOGSC, MIDA, OSV Malaysia and PwC.
LOCAL OILFIELD SERVICES COMPANY OF THE YEAR AWARD
21
HIGHLIGHTS
Business Focus Areas
23
Integrated Solutions Provider
Remain Focused in 3
Core Business Segments
Regional & International Expansion
Frontier Technology and
New Energy Source
Integrated Products &
Services Across Business Segments
Enhance SpecialisedOilfield and Chemical Services
Synergistic M&A
Remain Committed to Human Capital Development
KEY MESSAGES
24
Organic and Inorganic Growth
Continue to look for strategic M&A locally and regionally that are viable
and synergistic to our core business
Constant Dividend Payout
Continue to reward shareholders in line with
our dividend policy
Sustainable recurring service related
businessStrong support in recurring business
provides a platform for the Group to pursue sustainable growth
Human Capital Competency and
Development Increasing skilled staff force to cope with the
increased work requirements and
expansion
TO PROVIDE SUSTAINABLE GROWTH AND
ENHANCE STAKEHOLDERS’
VALUE