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DELEUM BERHAD

10th ANNUAL GENERAL

MEETING

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

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

HIGHLIGHTS

• 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

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