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SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 1

SUCCESS IS NOT A DESTINATION, IT IS A JOURNEY...

- Dato' M. A. Karim

2 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 3

ABOUT

SERBADINAMIK

VISIONTo excel globally as a recognised Total Technical Engineering and Commercial Services Provider

MISSION

•

•

•

The most highly regarded value-adder in terms of safety, quality and effectivenessThe first choice for customers that they need not look for other alternativesProfit contributor to our shareholders

To continously be:

Serba Dinamik Holdings Berhad (“Serba Dinamik” or “Company”) and its group of companies (“Group”) are an international energy services group providing a multitude of engineering services & solutions ranging from Operation & Maintenance (“O&M”), Engineering, Procurement Construction and Commissioning (“EPCC”) and other supporting products and services. Serba Dinamik provides its engineering services & solutions for O&G production platforms, crude O&G refineries, petrochemical manufacturing plants, Liquefied Natural Gas (“LNG”) & Compressed Natural Gas (“CNG”) plants, Power Production Plants, Water & Utilities Plants, Chemical Plants and Biogas / Biomass Plants. The company also has the capabilities to carry out EPCC of plants, facilities, road infrastructure and buildings, as well as other related systems and solutions including design

OVERVIEW

and installation of process control and instrumentation, system integration, auxiliary power generation and firefighting systems among others. Our operations cover thirteen (13) countries across five (5) different regions with facilities in Malaysia, Indonesia, United Arab Emirates (“UAE”), Bahrain and the United Kingdom (“UK”).


CORPORATEINFORMATION

REGISTERED OFFICE

Level 15, Menara Serba Dinamik,Presint 3.4, Persiaran Perbandaran, Seksyen 14, 40000 Shah AlamSelangor Darul Ehsan, MalaysiaTelephone No. : +603 5524 3512Facsimile No. : +603 5524 2612E-mail : [email protected] : www.e-serbadk.com

Level 15, Menara Serba Dinamik,Presint 3.4, Persiaran Perbandaran,Seksyen 14, 40000 Shah AlamSelangor Darul Ehsan, MalaysiaTelephone No. : +603 5524 3512Facsimile No. : +603 5524 2612E-mail : [email protected] : www.e-serbadk.com

HEAD OFFICE

Muhammad Hafiz bin Othman (MIA 37218)Nadiah Ili binti Adnan (MAICSA 7062952)

COMPANY SECRETARY

Chairman and Independent Non-Executive Director

Dato’ Mohamed Nor bin Abu Bakar

Group Managing Director and Group CEO

Dato’ Dr. Ir. Mohd Abdul Karim bin Abdullah

Deputy Group Managing Director

Dato’ Awang Daud bin Awang Putera

Non-Independent Non-Executive Director

Abdul Kadier Sahib

Senior Independent Non-Executive Director

Hasman Yusri bin Yusoff

Independent Non-Executive Directors

Sharifah Irina binti Syed Ahmad RadziTengku Dato’ Seri Hasmuddin bin Tengku OthmanRozilawati binti Haji Basir

BOARD OF DIRECTORS

KPMG PLT (Firm No. AF 0758)Level 2, Lee Onn Building,Jalan Lapangan Terbang,93250 Kuching, Sarawak, MalaysiaTelephone No. : +60 (82) 596 200Facsimile No. : +60 (82) 596 203

AUDITORS

Hasman Yusri bin Yusoff (Chairman) Abdul Kadier SahibSharifah Irina binti Syed Ahmad Radzi

AUDIT AND RISKCOMMITTEE

Telephone No. : +603 5524 3512 Facsimile No. : +603 5524 2712E-mail : [email protected]

INVESTOR RELATIONSDato’ Dr. Ir. Mohd Abdul Karim bin Abdullah(Chairman)Dato’ Awang Daud bin Awang Putera Tengku Dato’ Seri Hasmuddin bin Tengku Othman

INVESTMENT COMMITTEE

Tengku Dato’ Seri Hasmuddin bin Tengku Othman (Chairman)Abdul Kadier SahibSharifah Irina binti Syed Ahmad Radzi

NOMINATION ANDREMUNERATION COMMITTEE

Listed on the Main Market of Bursa Malaysia Securities Berhad Listing Date: 8 February 2017 Stock Name: SERBADKStock Code: 5279

STOCK EXCHANGE LISTING

TRICOR INVESTOR & ISSUING HOUSESERVICES SDN BHDUnit 32-01, Level 32Tower A, Vertical Business SuiteAvenue 3, Bangsar South No.8, Jalan Kerinchi 59200 Kuala Lumpur, MalaysiaTelephone No. : +603 2783 9299Facsimile No. : +603 2783 9222E-mail : [email protected]

SHARE REGISTRAR


INSIDE

8Corporate &Business Review10 Corporate Structure12 Facts At A Glance16 Chairman’s Message20 Group MD/CEO Statement26 Board of Directors44 Top Management46 Key Senior Management48 Other Senior Management

50About Our Business52 History & Milestones54 Our Business Model55 Our Business Activities58 Our Global Presence & Facilities60 Our Customers & Markets61 Highlights of Serba Dinamik62 Awards & Recognitions

64ManagementDiscussion & Analysis66 Financial Highlights 67 Financial Performance

84Industry ImpactOn Our Business86 Oil & Gas95 Power Generation98 Water Utility

100Sustainability Statement102 Group MD/CEO Sustainability Message106 About This Sustainability Statement107 Sustainability Framework

112 Economics130 Environment134 Social

150Corporate Governance152 Corporate Governance Overview Statement156 Statement of Risk Management & Internal Control161 Audit & Risk Committee Report

164Financial Statements166 Financial Statements181 Notes to the Financial Statements284 Statement by Directors 285 Statutory Declaration286 Independent Auditor's Report 292

Additional Information294 Other Compliance Information295 Analysis of Shareholdings298 Notice of The Third Annual General Meeting Proxy Form

Details informationon the Company’scorporate website

www.e-serbadk.com

T H I S R E P O R T


&CORPORATE BUSINESSREVIEW10 Corporate Structure

12 Facts At A Glance

16 Chairman’s Message

20 Group MD/CEO Statement

26 Board of Directors

44 Top Management

46 Key Senior Management

48 Other Senior Management


Subsidiary Associate Dormant

A 99.998% subsidiary of SDIL Formerly known as Top Luxury Sdn. Bhd.

10% owned by SDGB

*#

+^

SERBA DINAMIKRMC. FZE. 100%

KBENGINEERING

COATING SDN. BHD.100%

SERBA DINAMIKPOWER SDN. BHD.

100%

SERBA DINAMIKBRUNEI

SDN. BHD.*75%

SD CONTROLSSDN. BHD.80%

AR GLOBALENGINEERING

SDN. BHD.100%

SERBA DINAMIK

INTERNATIONAL LTD.

100%

SERBA DINAMIKINTERNATIONAL LTD.(LONDON) #

EMCO HOLDINGS SA100%SERBA DINAMIKPETROLEUM SERVICES W.L.L.(BAHRAIN)99%

PT SERBADINAMIK INDONESIA75%

SD SUKUKINTERNATIONAL LTD. 100%

PT KUBIC GASCO51%

LA RAPIDA SA.20%

SERBA DINAMIKINTERNATIONAL (QATAR)*49%

AL-SAGAR ENGINEERINGCOMPANY L.L.C.49%

CSE GLOBAL LTD.24.8%

SREEM SERBA TURBINESPVT. LTD.40%

SUFINI HOLDINGS LTD.25%

GREEN SMART HOLDINGS PLC.25%

AL MURISIDEVELOPMENT

SDN. BHD.30%

SD ENERTECH SDN. BHD.25%

SD ADVANCEENGINEERING

SDN. BHD.51%

SERBA DINAMIKSDN. BHD.100%

SERBA DINAMIKCONSTRUCTION SDN. BHD.^100%

SUPREME VISTASDN. BHD.*100%

QUANTUM OFFSHORE LTD.100%

ADAT SANJUNGSDN. BHD.30%

KONSORTIUM AMANIE JVSDN. BHD.40%

SERBA DINAMIKIT SOLUTIONS

SDN. BHD.100%

TELEGISTICSASIA SDN. BHD.100%

MATERIALS TECHNOLOGY EDUCATIONSDN. BHD.70%

eNoah iSolutionINDIA PRIVATE LTD.30%

SD DEVELOPMENTSDN. BHD.100%

SERBA DINAMIKGROUP BERHAD

100%

+

CORPORATESTRUCTURE


■ Terkmenistan/India/Uzbekistan/Kazakhstan

■ Malaysia■ Indonesia■ Laos■ Singapore*■ Australia*■ New Zealand*

■ Southeast Asia

■ Qatar■ Bahrain■ UAE■ Saudi Arabia■ Oman■ Kuwait■ US*

■ Mexico*

■ MiddleEast

■ Uzbekistan■ Kazakhstan■ Turkmenistan■ India

■ Central & South Asia

■ United Kingdom■ Netherlands■ Switzerland■ Norway*

■ Europe

■ South & North America

■ Tanzania■ Nigeria*

■ Africa

*CSE Global Operational Location

FACTS AT A GLANCE

GROUP REVENUE

RM3.28 billion

O&M Services

RM2.93 billionEPCC Works

RM346.81 million

Others

RM7.81 million


1,242WORKFORCE

THINK

ACT

LOCALLY...

as at 31 December 2018

TOTAL GLOBALLY,


DEAR SHAREHOLDERS,

In the past year, the oil and gas (“O&G”) industry has shown signs of recovery after a few years of uncertainty. It could be seen that the average closing prices of crude oil have fairly stabilised at approximately USD65 per barrel on average . The production of oil has reached its record high, however, in the times of technology advancement, there has been a shift in sentiment against the industry itself. The 5th OPEC and non-OPEC Ministerial Meeting concluded that the oil market has reached record low in terms of its prices, its worst price plunge since the 2008 Sub-prime Mortgage Crisis. This has ratcheted up pressure on the budgets in oil-exporting countries. In the effort of salvaging oil prices, OPEC begun to impose production cuts of supplies in several nations to end its downturn. Nevertheless, we can see a silver lining as the market is showing signs of improvements in the coming year of 2019. With that being said, while the industry sentiment remains cautious but with hopes of recovery, Serba Dinamik has weathered through 2018 and delivered yet another year of outstanding performance for the financial year ended 31 December 2018 (“ ”).


CHAIRMAN’S

Overview

The internal struggles in the Middle East has brought about instability in not only the regional political arena but also the oil and gas price. Being the region with the highest concentration of oil producing countries, it is not a wonder as to why the oil prices were severely affected. It started with the US imposing sanctions against Iran. On a more local front, 2018 marks a crucial year for Malaysia, as the Malaysian political scene has started a brand-new chapter in the country’s history. Weakened investor sentiment in the country following the 14th General Election (“GE14”) has caused a decrease in the annual growth rate of Malaysia’s Gross Domestic Product (“GDP”) from 5.6% in 2017 to 5.1% in 2018.

Theoretically, this is not necessarily bad for the economy, as this may then result in a potential boom for the country’s export sector, as Malaysia has become viable again as a source of an affordable haven for services. On the flip side, the country's economic environment is exposed to substantial risk in terms of its currency as the Ringgit weakened against the USD during 2018. This then puts the industry players in a difficult situation as oil price is pegged against the USD. On the bright side, as a major oil-exporting country, the Malaysian government has put in great efforts to salvage the industry. In a nutshell, the Malaysian O&G industry has been working very hard to recover but signs have been looking up.

In FYE2018, Serba Dinamik has managed to brave yet another year of demanding market conditions and maintained its reputation in the industry. The services that we provide are fundamental to extending the lifespan of our clients' assets. This is also a remarkable year where we are putting more focus into enhancing our Information and Communication Technology ("ICT") segment. Whilst mindful of market conditions, our Group had also successfully secured and renewed contracts with various clients, while also being in a healthy financial position to further delve into the development of new joint ventures. With all that said, this provide our Group a stepping stone into further business opportunities.

Looking Ahead

Goldman Sachs Research show that the global economy growth looks poised to slow moderately from 3.8% in 2018 to 3.5% in 2019, led by deceleration in the US and further softening in China. But with growth still above potential in most developed economies, Goldman Sachs Research expects continued labor market tightening, gradually rising core inflation, and in many cases higher policy rates. This will be mirrored by Malaysia as forecasted by the World Bank that Malaysia's GDP will also experience a slowed growth as investor sentiments slow due to the volatile global economic environment. Overall, bankers and analysts believe the oil and gas sector will recover in 2019 and improve on the previous years' performance due to the potential appreciation of crude oil prices.

In terms of energy and power generation, it is anticipated that 2019 will be a year of innovation and disruptive technology across major energy sectors, from fossil fuels to renewable energy. The 2018 recovery in commodity prices and cash flows has been good news for the sector. The challenge now will likely be to translate that into sustainable profitability and returns. Furthermore, infrastructure such as building and expanding pipelines, processing facilities, import and export terminals, storage facilities, and LNG plants is a vital but often underappreciated part of the value chain. Finally, the subject of sustainability. Energy and chemicals companies are not newcomers to the sustainability agenda. They have been reporting and communicating on environmental footprints, impact mitigation, and sustainability for some years now which can now be further improved by taking advantage of the opportunities developing from digital technologies such as the deployment of artificial intelligence, analytics, robotics, and blockchain to increase efficiency, productivity, reliability, and predictability of operations .

To ensure Serba Dinamik's continued success, we remain focused on building a robust business strategy to weather any harsh environment this upcoming year. We plans to penetrate new regions where there is potential for us

to grow our businesses with manageable risks whilst maintaining our O&M and EPCC operations as we continue to enhance our business activities and explore new projects, both locally and internationally in a manner that will strategically benefit the organisation.

In terms of geographical segmentation, Malaysia was the highest contributing country to the Group’s revenue in FYE2018. However, we also achieved our ambition to grow our international operations which contributed to 71.97% of the Group’s total revenue, a milestone which proves our continuous effort to progress as an organisation. In 2019, we hope to penetrate a wider array of countries, to be able to boost our reputation as an influential multinational organisation.

Overall, we remain optimistic on our potential growth in 2019, and hopefully leave a bigger footprint on the global economic scene.

Appreciation

I would like to take this opportunity to extend my heartfelt gratitude to my fellow Board members for their unceasing contribution towards the Company’s continued success thus far. On behalf of the Company, we would like to thank our valued customers, business associates, partners, bankers and staff as well as our loyal shareholders for their invaluable support and confidence in Serba Dinamik throughout the years.

DATO’ MOHAMED NOR BIN ABU BAKARChairman/Independent Non-Executive Director

C H A I R M A N ' S M E S S A G E

MESSAGE


STATEMENTFROM OURGROUP MANAGING DIRECTOR/CEO

Dear Shareholders,

Amidst the change in the political environment and the

industry, I am proud to say that Serba Dinamik has again

delivered our promises with its exceptional performances in

2018. While the country is adjusting towards a new political

environment, we as a player in the O&G industry oversee

the industry’s journey to recovery. On the global arena, after

facing several years of oversupply, which caused a decline

in the global Oil and Gas sectors, the oil price has finally

rebounded and stood steadily on the average of USD65 per

barrel (bbl). Although it is less challenging as compared to

the past years, Serba Dinamik's team has worked tirelessly to

contribute in every breakthrough and to ensure the company

remains on track. For this, I owe thanks to our amazing family

in Serba Dinamik. Our share price has remained strong at the

average of RM3.70 and withstood major economic disruptions.

I wish to take this opportunity to express my gratitude to our

dedicated team at Serba Dinamik in remaining high-spirited

despite the treacherous environment they went through.


OUR ACHIEVEMENTS IN 2018 - KEY HIGHLIGHTS OF THE YEAR

I am thrilled to present our Annual Report and Audited Financial Statements of the Company for the financial year ended 31 December 2018 (“FYE2018”). Here is a summary of our remarkable milestones achieved in 2018:

1. Financially, we have achieved a significant growth of 20.60% in revenue at RM3.28 billion for the Financial Year Ended 2018 (“FYE2018”), as compared to RM2.72 billion for the preceding financial year ended 31 December 2017 (“FYE2017”). The improvement in revenue was mainly driven by our operations & maintenance (“O&M”) segment. Hence, the Company’s Profit Before Tax (“PBT”) and Profit After Tax (“PAT”) for FYE2018 stood at RM437.63 million and RM392.84 million, with an increment of 26.46% and 28.89% respectively as compared to RM346.07 million and RM304.79 million in FYE2017.

2. In terms of O&M and EPCC contracts, 2018 started strong for us. We managed to secure new O&M and EPCC contracts with record-breaking valuations which has now become a milestone and benchmark for the organisation. Of course, these contracts are not only from Malaysia but also from several countries abroad such as Indonesia, Laos, and a few countries in the Middle East and Central Asia. We have also secured additional contracts through our asset ownership model. This is to ensure the longevity and profitability of our business in this segment which is intended to positively contribute to our Group’s total revenue.

3. To ensure our continued presence in the market, we have put more focus into ICT. In August, we entered a Memorandum of Understanding (“MoU”) with Microsoft in conjunction with our company embracing Industry 4.0. The partnership aims to enhance our productivity, cost-efficiency and

innovation through digital mediums. We have also acquired a 30% stake from the Indian based eNoah iSolutions Pvt. Ltd (“eNoah”), through our wholly owned subsidiary, Serba Dinamik IT Solutions Sdn Bhd. With the expertise and reputation of eNoah, we are confident that we would be enhance the growth of our IT segment and strengthen our presence in the Asian region. We hope to be a leader in the adoption of digitisation in the O&G industry. We look forward to the potential growth from our IT segment after the acquisition which we predict would be in the range of 2.00%-2.50% by the following year.

4. We believe in talent management and expanding our capabilities through education. Therefore, we acquired 70% of Materials Technology Education Sdn Bhd for RM480,000.00 through wholly owned subsidiary, Telegistics Asia Sdn Bhd. The purpose of this acquisition is to solidify our belief in technical training programs which would then allow our company to conduct extensive trainings, in-house, which is crucial for the support in our business operations.

5. In recognition of our efforts for the year, we are proud to mention that Serba Dinamik was awarded the Forbes Asia’s Best Under A Billion Award. This award highlights the 200 leading public listed companies in the Asia Pacific region with annual revenue under USD1 billion. This remarkable milestone has further motivated us to give our best in achieving our goals, which are to add value to in terms of safety, quality and effectiveness, be more sustainable and globally conscious, and to be able to maximise our shareholder returns.

6. One of our ventures in the property sector is the Pengerang Eco Industrial Park (“PeIP”). In April 2018, the development of PeIP has officially begun. This project is in fact Malaysia’s first Global Centre of Excellence for the oil and gas industry which focuses in maintenance, repair and overhaul

S T A T E M E N T F R O M O U R M D / C E O S T A T E M E N T F R O M O U R M D / C E O

(“MRO”) of rotating equipment, and, inspection, repair and maintenance (“IRM”) of static equipment. This industrial park would be the Centre of all our talent management projects. Furthermore, this plant turnaround village will be equipped with up-to-date machinery and facilities. This infrastructure will be used in the detection and diagnosis of flaws and defects at an early stage to improve operational efficiency and operational safety. We are confident that this project would create more job opportunities in our line of work, especially in Pengerang itself, and, we would be able to meet the needs of world-class players in the O&G industry with high quality infrastructure.

In summary, 2018 was a year of milestones for us which expands our interests and footprint on a more international scale and different sectors. We have increased our influence in the continent of Africa through Tanzania, and continue to strengthen our presence in Southeast Asia and Central Asia by expanding into Laos, Kazakhstan and Uzbekistan.

We foresee the role of Information Technology as a catalyst in the industry and to better streamline our objectives. We embrace the Industry 4.0 revolution and have put in great efforts into expanding our IT capabilities to ensure the sustainability of the Company. A sum of RM20 million is allocated to further develop our IT segment to manage our operations utilising cyber-physical systems, Internet-of-Things (“IoT”), cloud computing and big data analytics. We hope that this would help the Company to move up the value chain and remain relevant to the industry in the years to come. Looking forward, Serba Dinamik will now continuously seek new opportunities to ensure profitability of the Group and to our shareholders.

Forward Looking

In 2019, we expect the oil and gas, and chemicals industry to continue recovering. Research analysts have maintained their positive outlook for 2019 as the O&G sector stands to benefit from the projected recovery in crude oil prices and the expected increase in both upstream and downstream activities. Besides, Petronas has pegged the oil price outlook at a range of USD60 to USD70 per barrel in its 2019-2021 outlook report as compared to USD50-USD80 in its previous 2018-2020 outlook. Nevertheless, we believe that any changes in oil prices will have minimal implication on the company, so long as production continues, and our current contracts are being fulfilled.

This year, we plan to expand our expertise continuously in O&M and EPCC to widen our foothold in more countries and regions. The geographical expansion will cushion and offset the unforeseen geopolitical risks for the Company to maintain its business goals, to continue driving profitability and make our name in the world’s O&G industry.

In terms of energy and power generation, 2019 is anticipated to be a year of innovation and disruptive technology across major energy sectors, from fossil fuels to renewable energy. As the industry recovered in 2018 ensuring stability to the sector, the next challenge would be to maintain sustainable profitability and returns. The next discourse would be in the subject of sustainability. Although this is not new for the industry players, there have been continuous efforts going on behind the scene. The organisation’s environmental footprint has been properly documented and reported, mitigation of impact, and sustainability for some years now which can now be further developed by utilising digital technologies such as the deployment of artificial intelligence, analytics, robotics, and blockchain to increase efficiency, productivity, reliability, and efficiency of operations.


To put it in action, our group has committed ourselves in the organisation’s power generation businesses. Other than relying on fossil fuels and carbon, venturing into the renewable energy industry would further showcase our talent and expertise in the energy generation sector. We hope that in the near future, we will be able to synergise our business segments to deliver cost-efficient, innovative, and quality services to our clientele to achieve sustainability in our businesses by contributing relentlessly to the benefit of the environment and society.

Acknowledgement

To conclude our phenomenal journey of 2018, I sincerely thank my fellow Board of Directors, who have been nothing but consistent and dedicated partners, to help Serba Dinamik persevere and deliver yet another year of exceptional quality. I would also like to express my sincere appreciation to our dedicated key management and staffs for their devotion and efforts in contributing to Serba Dinamik’s success thus far.

On behalf of the Group, I would like to extend my greatest appreciation to our stakeholders for having belief in our company. Your relentless support has been a rock to us for our organisation to strive to achieve even greater heights.

DATO’ DR. IR. MOHD ABDUL KARIM BIN ABDULLAHGroup Managing Director/Chief Executive Officer

S T A T E M E N T F R O M O U R M D / C E O S T A T E M E N T F R O M O U R M D / C E O


1

2

3

4

5

BOARD OF DIRECTORS

67

8

1 DATO’ AWANG DAUD BIN AWANG PUTERA 2 DATO’ DR. IR. MOHD ABDUL KARIM BIN ABDULLAH

3 SHARIFAH IRINA BINTI SYED AHMAD RADZI 4 HASMAN YUSRI BIN YUSOFF 5 DATO’ MOHAMED NOR BIN ABU BAKAR

6 ROZILAWATI BINTI HAJI BASIR 7 ABDUL KADIER SAHIB 8 TENGKU DATO' SERI HASMUDDIN BIN TENGKU OTHMAN


DATO’ MOHAMED NOR BIN ABU BAKAR

Chairman, Independent Non-Executive DirectorMalaysian/Age 69/Male

Date of Appointment: 31 May 2016

Board Meeting Attendance in 2018: 5/5

Board Committees Membership(s):Board of Directors (Chairman)

Directorship In Other Public CompaniesAnd Listed Issuers:Nil

ACADEMIC/PROFESSIONAL QUALIFICATIONS

Dato’ Mohamed Nor obtained his Bachelor Degree in Chemical Engineering in 1974 from the Heriot-Watt University, Scotland, UK. Throughout his career, he has attended several senior management courses overseas, including The Wharton Advance Management Program at The Wharton School, University of Pennsylvania, United States of America. He sat on several technical committees associated with Scientific and Industrial Research Institute of Malaysia (“SIRIM”) and was the past President of Petrochemical Association of Malaysia.

WORKING EXPERIENCE AND OCCUPATION

Dato’ Mohamed Nor began his career with Chemical Company of Malaysia Berhad, a subsidiary of Imperial Chemical Industry of UK Ltd (“ICI”) in 1974, prior to joining PETRONAS in 1981. While with ICI he was seconded to ICI Chemical and Fertiliser Teeside Complex in the UK for one and half years as a Technical Engineer in a chlor-alkali process plant manufacturing chlorine gas for water treatment. Subsequently in 1981, he joined PETRONAS as Operations Manager of Asean Bintulu Fertiliser Sdn Bhd and was seconded to Uhde High Pressure Technologies GmbH in Germany to head a project team to carry out the basic and detailed engineering of high pressure technology in the manufacturing of ammonia and urea. He was promoted as the Managing Director cum Chief Executive Officer of Asean Bintulu Fertiliser Sdn Bhd in 1992. In 1994, he was transferred to Kerteh, Terengganu as the Managing Director cum Chief Executive Officer of Ethylene and Polyethylene Malaysia Sdn Bhd, a joint venture between PETRONAS, British Petroleum and Idemitsu Kosan Co. Ltd. His last position in PETRONAS was as the Chairman of Kerteh Integrated Petrochemical Complex prior to his retirement in 2007.

B O A R D O F D I R E C T O R S P R O F I L E


DATO’ DR. IR. MOHD ABDUL KARIM BIN ABDULLAH

Group Managing Director/Group CEONon-Independent Executive DirectorMalaysian/Age 53/Male



Board Committees Membership(s):Investment Committee (Chairman) Board of Directors

Directorship In Other Public CompaniesAnd Listed Issuers:CSE Global Limited

Academic/Professional Qualifications

Dato’ Karim holds a Bachelor in Mechanical Engineering from Universiti Teknologi Malaysia. He obtained an Honorary PhD in Industrial Engineering from InterAmerican University, USA in 2009 and a PhD in Entrepreneurship from Golden State University, USA in 2012. He is a member of the Institution of Engineers Malaysia since 1994, a registered member of the Board of Engineers Malaysia since 1996 and a member of the Asean Federation of Engineering Organisation since 2002.

He attended various trainings which include: courses on Welding Technology & Inspection held by MJ NDT Training & Consultancy Services (1990), Machinery Monitoring Data Acquisition & Machinery Diagnostic sponsored by Bently Nevada Singapore (1990), Inspection & Maintenance of Rotating Machines held by Japan Cooperation Center Petroleum (1991), seminar on steam turbines held by ABB Turbinen Nürnberg GmbH, Germany (1992) and training on design and usage of condition monitoring products held by Bruel & Kjaer, Denmark.

Working Experience And Occupation

Dato’ Karim’s illustrious engineering career spanning 31 years started with Asean Bintulu Fertilizer Sdn Bhd (1988) as a Mechanical Engineer. Later he was appointed as the Coordinator for the Ammonia and Rotary 5th turnaround Preparation Team (1990) and as a Rotating Equipment Area Engineer (1991). In 1993, he formed Serba Dinamik and assumed the position as the Group Chief Executive Officer.

He gained vast experience in the maintenance and installation of rotating equipment since 1993 that includes major overhaul/inspection of 37MW MHI steam turbines in Module 1, 2 & 3 of Malaysia LNG Sdn Bhd and overall supervisory of plant shutdown maintenance on various rotating equipment.

His tenure as a site project manager with Malaysia LNG Sdn Bhd exposed him to construction and fabrication under the supply and construction of new civil workshop, extension of main warehouse and mechanical workshop in, installation of Jet A- 1 Bunkering Line in Shell Timur Sdn Bhd, installation of flush tank at Bintulu Depot and various other projects with the company.

He has conducted numerous training sessions, internally and externally, primarily in power and oil & gas sectors. Focus areas of training include vibration, machinery alignment and balancing course, condition monitoring programme for rotating equipment, integrated machinery maintenance, preventive and predictive maintenance, inspection and maintenance of pumps, and inspection and maintenance of steam turbines. He also conducted talks on the latest technologies related to Industry 4.0, Asset Integrity Management and Innovative Blockchain.



DATO’ AWANG DAUD BIN AWANG PUTERA

Deputy Group Managing DirectorNon-Independent Executive DirectorMalaysian/Age 58/Male


Board Meeting Attendance in 2018: 4/5 Board Committees Membership(s):Board of DirectorsInvestment Committee



Dato’ Awang Daud obtained an intermediate certificate for Mechanical Fitter/General Mechanic in 1980 from the Institut Kemahiran MARA, Malaysia, and was certified by the National Industrial Trade Training Board in June 1980. He obtained his Bachelor of Science in Mechanical Engineering in 1994 from the University of the East, Philippines. He subsequently obtained a Master in Mechanical Engineering in 2007 from the Universitas Pancasila, Jakarta, Indonesia. In 2018, Dato’ Awang Daud was conferred the highest professional qualification of CHARTERED FELLOW which carries the post nominal FCILT from The Chartered Institute of Logistics and Transport Malaysia (CILTM) which is locally and internationally recognize. He is currently appointed as the Honorary Advisor to The International Business Forum of CILTM and CILTM Sarawak Chapter.


Dato’ Awang Daud began his career with Syarikat Jengka Pahang Sdn Bhd as an apprentice in 1978 where he was trained in overhauls and repairs of rotating equipment such as electric motor, multi centrifugal pumps, rotary pumps boiler and driers. In 1980, he joined Ballast Nedam International (Malaysia) Sdn Bhd as a Mechanical Workshop Supervisor where he was in charge of productivity and service quality of machining jobs, welding/fabrication and maintenance repair of mechanical equipment. He then joined Daelim (Malaysia) Sdn Bhd in 1981 as a Heavy Industries Equipment Millwright where he gained experience in designing, fabrication, maintenance, installation and repair works of various heavy machinery and vehicles. In 1983, he joined Malaysia LNG Sdn Bhd as Technician 3 and was eventually promoted to Supervisor. He was a part of the pioneer group which set up the mechanical workshop for the first product of LNG and maintenance of Malaysia LNG Sdn Bhd. He remained in Malaysia LNG Sdn Bhd until 1993. He joined Serba Dinamik in 1994 as a director and was involved in field supervision, coordination and managing various projects, construction and fabrication tasks, planning and tendering, attending negotiation and handling managerial portfolios.



ABDUL KADIER SAHIB

Non-Independent Non-Executive DirectorMalaysian/Age 69/Male



Board Committees Membership(s): Board of Directors Audit & Risk Committee Nomination and Remuneration Committee



Abdul Kadier obtained his Bachelor Degree in Economics in 1973 from the University of Malaya, Malaysia. He began his career as a marketing executive with Diethlem Sdn Bhd in 1973 for one year and later joined Sarawak Economic Development Corporation, where he served as a marketing officer until 1976. In 1976, he started his own business in diversified areas of food industry, road transportation, agriculture and forestry. In July 1994, he was appointed as a director in Serba Dinamik and subsequently became a shareholder of Serba Dinamik in October 1994.


Abdul Kadier is a member of the Party Pesaka Bumiputera Bersatu Sarawak (“PBB”) and sat as an executive committee member at the state level of PBB Youth Wing for two terms, from 1985 to 1989. He is an active member of the Bumiputera Chamber of Commerce Sarawak (“DUBS”) and was elected as Chairman for the Bintulu branch in 1986 where he continued for three terms until 1991, thereafter advisor of DUBS from 1992 to 1994. Presently, he is the Vice President of DUBS at state level, a position he was elected in 2014 and will continue to hold until 2019. He was appointed as a member of the Consultative Council to Local Government, whose main function is to advise the Bintulu Development Authority on the development and local government functions in Bintulu, for the periods between 1991 to 1997 and 2013 to 2019.



SHARIFAH IRINA BINTI SYED AHMAD RADZI

Independent Non-Executive DirectorMalaysian/Age 42/Female



Board Committees Membership(s):Board of Directors Audit & Risk Committee Nomination & Remuneration Committee



Sharifah Irina obtained her Bachelor of Commerce (Accounting) in 1999 from The University of Adelaide, Australia. She later obtained a Master of Business of Administration (“MBA”) in 2011 from University of Strathclyde, Scotland, UK. She is a Chartered Accountant and has memberships with Chartered Accountants Australia and New Zealand (formerly The Institute of Chartered Accountants in Australia (“ICAA”) since 2003 and Malaysian Institute of Accountants (“MIA”) since 2004. During her career, she has also obtained a Graduate Diploma (ICAA) Certificate of Completion in 2003 and certification as a certified SAP Financial Solution Consultant in Financial Accounting in 2007 and Management Accounting in 2008. Accounting in 2008.


Sharifah Irina began her career withPricewaterhouseCoopers Malaysia in 1999, in Business Advisory Services, providing audit services to a wide range of industries, which include public listed companies dealing with media, oil and gas, automotive and property development, among others. In 2002, she joined Usaha Tegas Sdn Bhd in Internal Audit Department and was responsible for dealing with matters in relation to corporate governance, compliance, enterprise risk management, internal controls and policies. In 2003, she joined iPerintis Sdn Bhd as a Business Analyst to broaden her scope into IT, dealing with financial consultancy projects. While servicing predominantly oil and gas and shipping industries, she eventually became a certified SAP Financial Solution Consultant and thereon performed SAP projects including enhancements, customization, and full cycle project implementations.

In 2011, she joined Abeam Consulting (M) Sdn Bhd as a Senior SAP Financial Consultant providing SAP services locally as well as overseas for companies in various industries including insurance, manufacturing, security enforcement and defence and plantation. She was responsible for the end-to-end SAP implementation, from understanding the various business landscapes, needs and requirements and performing gap analysis to blueprint, functional specifications and manual documentations, project implementation, testing, verification and reconciliation exercises through training and support.



TENGKU DATO’ SERI HASMUDDIN BIN TENGKU OTHMAN

Independent Non-Executive DirectorMalaysian/Age 57/Male

Date of Appointment: 31 May 2016 Board Meeting Attendance in 2018: 5/5 Board Committees Membership(s):Nomination & Remuneration Committee (Chairman)Board of Directors Investment Committee

Directorship In Other Public CompaniesAnd Listed Issuers:Aliran Ihsan Resources Berhad


Tengku Dato’ Seri Hasmuddin obtained his Bachelor of Law (Honours) in 1986 from the University of Malaya, Malaysia. He is a practising advocate and solicitor, having admitted to the Malaysian Bar on 14 July 1987.


In 1990, Tengku Dato’ Seri Hasmuddin joined Messrs. Hisham Sobri & Kadir where he is presently the Principal Partner. His main areas of practice are corporate commercial law and Islamic banking and finance. Tengku Dato’ Seri Hasmuddin was among one of the legal counsels involved in framing the structural framework for Islamic banking documentation in the early stages of its development in Malaysia.

He has been a member of the Association of Chartered Islamic Finance Professionals Malaysia since 2009. He continues to play an active role in the development of this area of law through his involvement in the organization of Kuala Lumpur Islamic Finance Forum (KLIFF), an annual forum that gathers prominent personalities, practitioners and industry players of Islamic Finance as well as by presenting papers at conferences and forums on the subject which are held both locally and internationally.

Currently, Tengku Dato’ Seri Hasmuddin sits on the boards of IJN Holdings Sdn. Bhd, Aliran Ihsan Resources Berhad and Rangkaian Hotel Seri Malaysia Sdn. Bhd.

Tengku Dato’ Seri Hasmuddin is also involved in charitable organisations in the capacity of a trustee to the Tuanku Najihah Foundation, Tabung Amanah Pesakit Malaysia, Institut Quran Tuanku Jaafar, Yayasan Kolej Islam Sultan Alam Shah and Yayasan Munarah.



HASMAN YUSRI BIN YUSOFF

Senior Independent Non-Executive DirectorMalaysian/Age 58/Male

Date of Appointment: 16 November 2016

Board Meeting Attendance in 2018: 5/5 Board Committees Membership(s):Audit & Risk Committee (Chairman)Board of Directors

Directorship In Other Public CompaniesAnd Listed Issuers:Malaysian Resources Corporation Berhad


Hasman Yusri is a member of the Malaysian Institute of Accountants and a Fellow of the Association of Chartered Certified Accountants. He holds a Postgraduate Diploma in Islamic Studies from International Islamic University Malaysia.


Hasman Yusri was a Partner at KPMG Malaysia before his retirement in December 2015. He joined KPMG in 1999 as a Director in the Assurance and Audit Division before becoming a Principal with the Assurance Division in October 2001. Prior to KPMG, he was with the Petronas Group of Companies for 10 years from 1984 to 1994, holding various positions in the Group. Thereafter, he joined Malakoff Berhad for four years from 1995 to 1999 as the General Manager, Finance responsible for the financial affairs of the Group. His experience in audit and commercial covers a wide range of industries including construction, property development, plantation, power generation and oil & gas.



ROZILAWATI BINTI HAJI BASIR

Independent Non-Executive DirectorMalaysian/Age 47/Female

Date of Appointment: 19 April 2019

Board Meeting Attendance in 2018: NA Board Committees Membership(s):Board of Directors

Directorship In Other Public CompaniesAnd Listed Issuers:Kumpulan Fima Berhad


Rozilawati received her Degree in Social Sciences majoring in Law, University of Hertfordshire, United Kingdom in 1993 . She furthered her education and obtained her Masters in Business Administration in International Business from the University of Bristol, United Kingdom in 1999.


Rozilawati began her career life as a Research & Analyst Assistant in Capital Corp Securities Malaysia Sdn Bhd in 1994 before moving to Kumpulan Fima Berhad in 1996 as a Corporate Services Executive. She further worked in the United Kingdom between 1999 and 2000 as a Business Executive in Bristol Enterprise Centre of the University of Bristol. She then assumed a Senior Management position in Nationwide Express Courier Services Berhad (“NECSB”) where she served as an Executive Director for the Business Development Department between 2000 and 2003 before assuming her position as the Chief Executive Officer of NECSB in 2003. Rozilawati was the Founding President of Logistics and Supply Chain LSCom from 2004 until 2006. In 2010, she became the Chairman of NECSB where she served in this position till 2014. She then became the Managing Director of Nationwide Express Holdings Berhad from 2014 till 2018. She has a long standing list of achievements in corporate exercises, Mergers & Acquisitions, IPOs amongst others. She was also a notable speaker in several conventions and conferences that were held between 2004 and 2017. She was the President of Association of Malaysian Express Carriers ("AMEC") for three (3) terms since 2015.


* None of the Directors of Serba Dinamik Holdings Berhad has any family relationship with other Directors and/or major shareholders of the Company.

* None of the Directors and their family members have any interest with Serba Dinamik Holdings Berhad except for Dato’ Dr. Ir. Mohd Abdul Karim bin Abdullah, Dato’ Awang Daud bin Awang Putera and Abdul Kadier Sahib.

* None of the Directors of Serba Dinamik Holdings Berhad has any conviction for offences or has been imposed of any public sanction or penalty by the relevant regulatory bodies within the past five years.


TOP MANAGEMENT

DATO’ DR. IR. MOHD ABDUL KARIMBIN ABDULLAH

Group Managing Director/Group Chief Executive Officer and Non-Independent Executive DirectorMalaysian/Age 53/Male


For details of Dato’ Dr. Ir. Mohd Abdul Karim bin Abdullah’s profile, please refer to page 30 of this Annual Report.

DATO’ AWANG DAUD BIN AWANG PUTERA Deputy Group Managing Director/Non-Independent Executive DirectorMalaysian/Age 58/Male


For details of Dato’ Awang Daud bin Awang Putera’s profile, please refer to page 32 of this Annual Report.

T O P M A N A G E M E N T

SYED NAZIM BIN SYED FAISAL

Group Chief Financial Officer Malaysian/Age 38/Male

Date of Appointment: 03 August 2015

Directorships in public listed companies:CSE Global Limited Green & Smart Holdings PLC


Syed Nazim obtained his Bachelor of Accounting in 2004 from the International Islamic University Malaysia. He later obtained a Master Degree in Islamic Finance Practice in 2014 from the International Centre for Education in Islamic Finance, Malaysia. He also obtained a Certificate in Islamic Banking and Finance Law in 2013 from the International Islamic University Malaysia. He is a member of the Malaysian Institute of Accountants since 2007.


Syed Nazim began his career with KPMG (Assurance division) as an Audit Assistant in 2003. Later in 2009, he joined MISC Berhad as Strategic Planning Manager. Thereafter, in 2012, he joined RHB Islamic Bank Berhad as the Head of Statutory and Management Reporting. In 2013, he joined Ibdar Bank BSC(c), Kingdom of Bahrain, as Vice President, Financial Compliance and Administration. In August 2015, he joined the Serba Dinamik Group as Chief Financial Officer and subsequently, was appointed as our Group Chief Financial Officer in June 2016.


SENIOR MANAGEMENT

AFANDI BIN ABD HAMID

Vice President, O&M Business Unit Malaysian/Age 48/Male

Date of Appointment: 01 September 2013


Afandi was appointed on 1 September 2013 as our Vice President of O&M Business Unit. He obtained his Certificate as a Mechanical Technician in 1993 from the Petroleum Industrial Training Institute Malaysia. He obtained his Vibration Specialist Certificate 1 and 2 in 1997 from the Vibration Institute, United States of America. He later obtained his Bachelor of Science in Engineering in 2004 from the Liberty International University, United States of America, whereby he was awarded with an Award of Academic Excellence. He is also a member of the IMM Vibration Committee.


He began his career with Malaysia LNG Sdn Bhd as a Mechanical Trainee in 1991. In 1992, he joined Asean Bintulu Fertilizer Sdn Bhd as a Mechanical Technician. He later joined Petronas Penapisan Melaka Sdn Bhd in 1993 as Mechanical Technician (Construction), before assuming several roles, namely as an IMI Technician in 1995, Rotating Equipment Inspector in 1996, and was further promoted to Senior IMI Technician in 1998. In 2000, he joined Petronas Carigali Sdn Bhd as a Conditioned Based Maintenance Specialist. He joined Serba Dinamik as a Technical Engineer in 2001 and was promoted to Machinery Engineer in 2004 before assuming his current position in September 2013.

S E N I O R M A N A G E M E N T


Ir. Abdul Halim obtained his Bachelor’s degree in Electrical Engineering in 1991 from the University of Malaya, Malaysia. He is a member of the Royal International Naval Architecture since 2008 and a Registered Professional Engineer with Practicing Certificate (PePC) {Electrical} in the Board of Engineers Malaysia since 2006.


Ir. Abdul Halim began his career with SNC Industrial Laminates Sdn Bhd, a subsidiary of Sumitomo, as a Maintenance Engineer in 1992. He later joined Holcim (Malaysia) Sdn Bhd (formerly known as Tenggara Cement Manufacturing Sdn Bhd) as an Electrical Engineer in 1994 and subsequently was promoted to Senior Electrical Engineer in 1998. In 2004, he joined Malaysia Marine and Heavy Engineering Sdn Bhd as an Electrical Quality Assurance Senior Executive under Marine Business Unit and was subsequently promoted to Project Manager under the Yard Development Division. In 2010, he joined EKG Engineering, a Korean company as a General Manager. He then joined Serba Dinamik in April 2011 and has assumed his current position as Vice President of EPCC Business Unit.

IR. ABDUL HALIM BIN MOHD DAMIAH

Vice President, EPCC Business Unit Malaysian/Age 52/Male

Date of Appointment: 01 March 2016

* None of the Key Senior Management of Serba Dinamik Holdings Berhad hold any directorship in public companies and/or listed issuers except for Dato' Dr. Ir. Mohd Abdul Karim bin Abdullah, Dato' Awang Daud bin Awang Putera and Syed Nazim bin Syed Faisal.

* None of the Key Senior Management of Serba Dinamik Holdings Berhad has any family relationship with other Directors and/or major shareholders of the Company.

* None of the Key Senior Management of Serba Dinamik Holdings Berhad has any conviction for offences or has been imposed of any public sanction or penalty by the relevant regulatory bodies within the past five years.


KALAIKOVAN ANTONY

Chief Technology Officer Indian/Age 41/Male

Date of Appointment:09 August 2009

DR. TS. ZULKARNAIN KEDAH

Vice President,Education and TrainingMalaysian/Age 45/Male

Date of Appointment:21 July 2014

AZHAR MAJID QURESHI

Vice President,System Integrator Business Unit British/Age 67/Male

Date of Appointment:01 January 2015

O T H E R S E N I O R M A N A G E M E N T O T H E R S E N I O R M A N A G E M E N T

ROSLAND BIN OTHMAN

Senior Vice President, Special Projects and Business Development Malaysian/Age 46/Male

Date of Appointment:01 June 2016

YUSNI MOHAMED YUSOP

Vice President,Corporate Communication Malaysian/Age 49/Female

Date of Appointment:16 March 2015

SYAIFUL RADZMAN OSMAN

Head, Group Human Capital & General Affairs Division Malaysian/Age 39/Male

Date of Appointment:01 November 2001

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