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1
ANALYST BRIEFING
Q4 FY2012 Financial Results
& Updates
Updated as at 26 February 2013
2
CONTENTS
About Deleum
Business Activities
Highlights for the Year
Financial Highlights
3
ABOUT DELEUM
4
5
CORPORATE STATEMENT
To Provide Sustainable Growth and Enhance Stakeholders’Value
MISSION
VISIONTo be the Market Leader in our Operating Segmentsdomestically and to establish regional presence by 2015
SHARED VALUES
Integrity
Respect, Honesty, Ethics.
Professionalism
Accountability, Teamwork, Communication.
Health, Safety & Environment
Healthy/Balanced Lifestyle, Safety, Environment.
Excellence
Quality, Deliverance, Rewards.
6
ABOUT DELEUM
� Deleum Services Sdn. Bhd. (formerly known as
Delcom Services Sdn. Bhd. ) – est. in 1982
� PETRONAS licensed
� Long-term relationship with OEMs (> 20 years)
� Provides diverse range of specialised supporting
products and services for the Oil and Gas
Industry
� Relationships – Agency, JV and Self Operated
� Group strength – approx. 585 employees
Kemaman Supply Base,
Kemaman
Deleum Branch Office,
Miri
Asian Supply
Base,Labuan
Workshop Facilities,
Miri
Penaga Dresser,
Kemaman
Solar Turbines Integrated Overhaul
Facility,Senawang
Deleum Rotary
Services,Kajang
Deleum Head Office
Deleum Primera,Sg Besi
7
BOARD OF DIRECTORS
Nan Yusri Bin Nan Rahimy
Group Managing Director
Chin Kwai Yoong
Independent
Non-Executive Director
Lt General (R) Tan Sri Dato’ Seri Abdul Ghani Bin Abdul Aziz
Non-Independent Non-Executive Director
Dato’ Kamaruddin Bin Ahmad
Independent
Non-Executive Director
Datuk Ishak Bin Imam Abas
Independent
Non-Executive Director
Datuk Vivekananthan a/l
M. V. Nathan
Deputy Chairman
Dato’ Izham Bin Mahmud
Chairman
8
CORPORATE PROFILE
Deleum Berhad ProfileDeleum Berhad (Bursa: Deleum) is an investment holding
company and through its subsidiaries, provides a diverse
range of supporting specialised products and services for
the oil and gas industry, particularly the exploration and
production of oil and gas.
• Nan Yusri bin Nan Rahimy
Group Managing Director
• Zamani Abd Ghani
Group Chief Operating
Officer
• Heng Phok Wee
Chief Operating Officer
Deleum Services Sdn. Bhd.
• Ahmad Uzhir bin Khalid
Chief Operating Officer
Deleum Oilfield Services
Sdn. Bhd.
• Khairiri Abd Karim
Chief Operating Officer
Deleum Rotary Services Sdn.
Bhd.
• Lee Sew Bee
Senior General Manager
Corporate Services
• Jayanthi Gunaratnam
Senior General Manager
Finance, Administration &
Procurement
Key Management Team
Historical Price / Volume Chart (as at 26/02/2013)
Current Share Price (as at 26/02/13) RM1.90
Issued and Paid Up Capital 150 Million
Market Capitalisation (as at 26/02/13) RM285 Million
Shareholders Equity as at 31
December 2012
RM215 Million
Net Cash as at 31 December 2012 RM61.8 Million
Market Data
9
MILESTONES ACCOMPLISHED
1982198219821982 1985198519851985 1990199019901990 1995199519951995 2000200020002000 2005200520052005 2010201020102010 2012201220122012
(1982)
� Establishment of Deleum Services Sdn. Bhd. (DSSB)
(formerly known as Delcom Services Sdn. Bhd.)
(1999)
� Camco Inc acquired by Schlumberger
(2010)
� Acquisition of Deleum Rotary Services Sdn. Bhd. (formerly known as Rotary Technical Services Sdn. Bhd.) (DSSB’s wholly owned subsidiary)
(2007)
� Listed on Main Market Bursa Malaysia via investment holding entity Deleum Berhad
(2008)
� Establishment of Turbine Overhaul Facility
- Dedicated Solar Turbines Integrated Service Centre
� Acquisition of 51% equity interest of Penaga Dresser Sdn. Bhd. via 80% subsidiary Delcom Holdings Sdn. Bhd.
(1987)
� Establishment of Turboservices Sdn. Bhd. (TSSB)
- JV with Solar Turbines Inc. (After Market Salesfor Gas Turbines)
� Establishment of Camco (Malaysia) Sdn. Bhd. (CMSB)
- JV with Camco Inc.(Wireline & CompletionServices)
(2001)
� DSSB’s 49% acquisition of CMSB from Schlumberger
and assumed its current name of Deleum Oilfield ServicesSdn. Bhd. (formerly known as Delcom Oilfield ServicesSdn. Bhd.) (DSSB’s wholly owned subsidiary)
(2012)
� 30th Anniversary & Corporate
Rebranding
� Acquisition of 60% equity interest in Deleum Primera Sdn. Bhd. (formerly known as Northern Primera Sdn. Bhd.)
10
Deleum Services Sdn. Bhd.
100%
(formerly known as Delcom
Services Sdn. Bhd.)
Delflow Solutions Sdn. Bhd.
100%
Turboservices Overhaul
Sdn. Bhd.
100%
Deleum Services Holdings Limited
100%
(formerly known as Delcom Services Holdings
Limited)
Deleum Oilfield Services Sdn. Bhd.
100%
(formerly known as Delcom Oilfield Services
Sdn. Bhd.)
Deleum Chemicals Sdn. Bhd.
100%
(formerly known as Delcom Chemicals
Sdn .Bhd.)
VSM Technology Sdn. Bhd.
90%
Wisteria Sdn. Bhd.
100%
SledgeHammer Malaysia Sdn. Bhd.
100%
Deleum Rotary Services Sdn. Bhd.
100%
(formerly known as Rotary Technical Services
Sdn. Bhd.)
Turboservices Sdn. Bhd.
74%
Delcom Holdings Sdn. Bhd.
80%
Penaga Dresser Sdn. Bhd.
51%
Malaysian Mud And
Chemicals Sdn. Bhd.
32%
Delcom Power (Cambodia)
Limited
60%
Delcom Utilities (Cambodia)
Limited
60%
Cambodia Utilities
Pte. Ltd.
20%
Deleum Primera Sdn Bhd
60%
(formerly known as Northern Primera
Sdn. Bhd.)
GROUP CORPORATE STRUCTURE
11
BUSINESS ACTIVITIES
12
Oilfield Services
Maintenance, Repair and Overhaul
Power and
Machinery
CORE BUSINESS SEGMENTS
POWER AND MACHINERY
• Provision of gas turbine
packages
• Supply of gas turbines parts,
• Gas turbine overhaul,
maintenance and technical
services
• Combined heat and power
plant
• Supply, repair, maintenance
and installation of valves and
flow regulators
• Other production related
equipment services
OILFIELD SERVICES
• Provision of wireline
equipment and services
• Integrated wellhead
maintenance services
• Provision of oilfield
chemicals
• Other oilfield products
and technical services
MAINTENANCE, REPAIR AND OVERHAUL
• Repair, servicing, maintenance and overhaul of motors, generators, transformers, pumps
• Integrated corrosion, inspection and mitigation for surface preparation
• Composite repair and structural integrity
13
BUSINESS ACTIVITIES
POWER AND MACHINERY
15
POWER AND MACHINERY
We possess the capability to supply:
� complete life cycle support of gas turbine
generators and compressor packages
• Approximately 250 gas turbine
packages installed
�Turnkey / EPCC solutions
• CHP plants – Malaysian Mosaic Limited
& Muda Paper Mill, Petronas Fertiliser
• District cooling plant – KLCC, UTP,
Putrajaya
�Total life cycle support of valves and flow
regulators
� Provision of umbilical, piping insulation
solutions and mooring system
� Provision of floating production systems
16
� INTEGRATED SERVICES CENTRE
� Invested plant and equipment > RM 20 mil
� Sitting on 3.5 acres site (30k sqft built-up
area)
� Equipped with advanced simulators and
training skids
� Capabilities
• Turbine overhaul
• Component repair & remanufacture
• Stocking
• Retrofits
• Training
• Regional turbine packages
POWER AND MACHINERY (Cont’d)
OILFIELD SERVICES
18
OILFIELD SERVICES
Deleum’s Oilfield Services segment specialises mainly in upstream operations, topside
and downhole support services consisted of the following:
� Provision of wireline equipment and
logging services
� Completion services
� Integrated wellhead maintenance
services
� Oilfield chemical
� Other oilfield products and technical
services
� Decommissioning of platforms and wells
19
OILFIELD SERVICES
20
� SPECIALTY CHEMICALS
OILFIELD SERVICES (Cont’d)
� Signed Joint Commercialisation Agreement with
PETRONAS to jointly undertake commercialisation
activities in respect of the thermo-chemical
solution, SolidClenz™ (formerly referred as SDTT)
on 3 November 2011
� SolidClenz™ - a thermo-chemical solution for
organic deposit treatment in and around wellbore
for production enhancement
New Development
� Subsequent to the success, more solutions were
developed, as follows:
• Del-Clean – to dissolve and disperse inorganic
scale along with organic deposits
• Antifoulant GP/HX – for online chemical
treatment in crude or gas processing units
MAINTENANCE, REPAIRAND OVERHAUL (MRO)
22
MAINTENANCE, REPAIR AND OVERHAUL
� Primary Focus:
� Servicing, repair and maintenance of motors,
generators, transformers, pumps, valves (via Deleum
Rotary Services Sdn. Bhd.)
� Integrated corrosion, inspection and mitigation for
surface preparation (via Deleum Primera Sdn. Bhd.)
� Composite repair integrity for pipeline and structure for
oil and gas as well as general industries. (via Deleum
Rotary Services Sdn. Bhd.)
� IECEx certified from Simtars, Australia
� Expertise/ Capabilities
� Repair, services & maintenance
� Motors
� Genset, transformers, etc
� Electrical generation & transmission equipment
� Service & repairs for rotating equipment
� Engineering & design capabilities
� Turnkey/ Integrated maintenance service
� Service Facilities – Kajang, Pasir Gudang
RECOGNITIONS AND AWARDS
24
AWARDS FOR YEAR 2012
Best Contractor Performance
SCM – Contractors Management
Sharing Session
23 May 2012
Shell Goal Zero Award
Achieving 1,620 days without
any recordable accident
8 June 2012
PCSB SBO/SKO Contractors
Senior Management HSE
Forum Q2 FY 2012
25 June 2012
25
AWARDS FOR YEAR 2012 (Cont’d)
“Most Active Carigali Behavioral
Safety” Reporter
PCSB SBO/SKO Contractors
Senior Management HSE Forum
25 June 2012
Certificate of Appreciation
“SWI 1 Million Manhours without LTI”
16 July 2012
26
CERTIFICATIONS OBTAINED DURING YEAR 2012
International Electrotechnical Commission Explosive (IECEX)
CertificationDeleum Rotary Services Sdn. Bhd.
24 April 2012
Competence Management SystemDeleum Oilfield Services Sdn. Bhd.
18 January 2012
27
HIGHLIGHTS FOR THE YEAR
28
HIGHLIGHTS OF THE YEAR 2012
� Attainment of OPITO - Competence Management System Certification (OPITO-CMS)
� Deleum Oilfield Service Sdn Bhd (DOSSB) was
accorded an outright approval from OPITO on the
Competence Management System in January 2012
� First wireline company in Asia which received such
recognition and certification
� Competence Management System (CMS)
• A set of standards defining the competences
which apply to particular job roles
• Defines how a task is performed and the
necessary underpinning knowledge and
understanding required to deal with any
unexpected circumstances which could arise
29
HIGHLIGHTS OF THE YEAR 2012
� Development of the Training Well Facility
� Following the attainment of OPITO-CMS,
DOSSB had successfully commissioned the
first Training Well Facility at Asian Supply
Base in Labuan, Malaysia
� Serves as a training platform providing
simulated work environment
� The Training Well Facility is also made
available to external parties for training,
testing and etc
� Group’s commitments:
• To ensure workforce’s competency &
safety
• To provide quality service to all customers
30
HIGHLIGHTS OF THE YEAR 2012
� 1 For 2 Bonus Issue
� Increase the capital base of Deleum to a level which will better reflect the
Deleum Group’s current scale of operations.
� Reward to shareholders for their continuous support to the Deleum Group.
� To increase liquidity of the Deleum shares.
� Market capitalisation has increased from RM143 million (15/03/2012) to RM268
million (21/02/2013).
� 30th Anniversary and Corporate Rebranding
� In conjunction with the Group’s 30th Anniversary,
Deleum consolidated its business focus under a single
corporate identity.
� The subsidiaries have been rebranded as follows:
31
HIGHLIGHTS OF THE YEAR 2012
� Deleum Primera is involved in providing
services in integrated corrosion,
inspection and mitigation, primarily
using Sponge-Jet products.
� The acquisition was completed on 5
October 2012. Accordingly, Deleum
Primera is now a 60% owned subsidiary
of the Group.
� Rationale of the Acquisition:
� Provides another another revenue stream for the Deleum Group
� Synergises with the Deleum Group’s business as Deleum Primera’s existing
customers are mainly the targeted customers of the MRO segment
� Expansion of MRO’s segment’s scope of services
� Provides a gateway for Deleum Group to venture into Indonesia market
� Acquisition of Deleum Primera Sdn. Bhd. (“Deleum Primera”)
32
HIGHLIGHTS OF THE YEAR 2012
� Revamped Website
� Deleum is committed to continuously improving the way we communicate with our
stakeholders.
� The website has been redeveloped to provide a more detailed, relevant, interactive
and accessible site.
� The new site features a fresh design, focused on delivering information pertaining to
our products and services in easy to navigate, user-friendly features which are broadly
classified into six sections:
� Corporate Information
� Core Businesses
� Investor Relations
� Media
� Events
� Careers
33
DIVIDEND
Dividend PolicyDeleum’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.
11.012.0 11.5
14.015.0
47%45%
49% 48% 50.6%
0%
10%
20%
30%
40%
50%
60%
0.0
5.0
10.0
15.0
20.0
25.0
2008 2009 2010 2011 2012(unaudited)
Div
idend P
ayout
Rati
o (
%)
Div
idend P
er
Share
(Sen)
Dividend Per Share (Sen) Dividend Payout Ratio (%)
Year ended 31 December FY2011 FY2012
First interim (sen) 5 5
Second interim (sen) 9 10
Total dividend payout per share (sen) 14 15
Total share capital (no. of shares) 100,000,000 150,000,000
Total dividend payout / dividend declared RM14,000,000 RM22,500,000
Dividend Payout History
Comparison of Dividend Payout for FY2011 Vs Dividend Payout/Declared for FY2012
34
RECENT CORPORATE
DEVELOPMENT
35
RECENT CORPORATE DEVELOPMENT
� Potential Subscription of equity interest in NSE Resources Corporation (M) Sdn Bhd (“NSERC”)
� Deleum has accepted an offer from NSERC for Deleum to subscribe a percentage
equity interest in NSERC.
� The principal activities of NSERC Group are in the provision of specialty
chemicals and renewable energy.
� The Potential Subscription
is currently undergoing the
necessary due diligence
review
36
FINANCIAL HIGHLIGHTS
37
FINANCIAL HIGHLIGHTS
REVENUE/PBT/PATAMI
425.1 514.3 399.0 396.3 473.2
36.9
45.7
37.6
45.7
67.5
23.326.5
23.2
29.0
44.5
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0
100
200
300
400
500
600
2008 2009 2010 2011 2012(unaudited)
PBT
/PA
TA
MI (R
M M
illion)
Revenue (
RM
Million)
Revenue PBT PATAMI
� Revenue has increased by RM76.9 million or 19.4% year on year while PBT has increased by RM21.8 million or 47.6%
year on year largely due to the improved contributions made by ALL segments (details of which are described in
the following slides.
38
11.012.0 11.5
14.015.0
47%45%
49% 48% 50.6%
0%
10%
20%
30%
40%
50%
60%
0.0
5.0
10.0
15.0
20.0
25.0
2008 2009 2010 2011 2012(unaudited)
Div
idend P
ayout
Rati
o (
%)
Div
idend P
er
Share
(Sen)
Dividend Per Share (Sen) Dividend Payout Ratio (%)
GROUP CASH & BORROWINGSPROPERTIES, EQUIPMENT & TOTAL FIXED ASSETS
FINANCIAL HIGHLIGHTS
EMPLOYEES DIVIDEND
36
6258
71
81
6
2522
27
19
30
37 36
44
62
0
10
20
30
40
50
60
70
80
90
2008 2009 2010 2011 2012(unaudited)
(RM
Million)
Total Cash Total Borrowings Net Cash
253
391
456
510
585
0
100
200
300
400
500
600
700
2008 2009 2010 2011 2012
No.
of
Em
plo
yee
18 20 20 19 19
42
75 75 81 80
62
95 94100 99
0
20
40
60
80
100
120
0
20
40
60
80
100
120
2008 2009 2010 2011 2012(unaudited)
Tota
l Fix
ed A
ssets
(R
M M
illion)
Pro
pert
ies/
Equip
ment
(RM
M
illion)
Properties Equipment Total Fixed Assets
39
QUARTERLY RESULTS FOR Q4 FY2012
REVENUE/PBT/PATAMI � Revenue increased by 45.7% from the previous year’s
corresponding Q4
� Power & Machinery segment increased by RM55.1 million
mainly attributable to:
� supply of new refurbishment equipment for a retrofit
project
� overhauling activities
� maintenance and installation of valves and flow
regulators
� Oilfield Services segment experienced a reduction in
revenue by RM12.3 million due to:
� lower wireline and survey job utilisation
� lower demand for centralizers
� MRO segment experienced an increase in revenue by
RM6.0 million due to the inclusion of Deleum Primera’s
post acquisition revenue of RM5.1 million upon
completion of the acquisition
� PBT increased by 54.6% from the previous year’s corresponding Q4
� Higher operating profit of RM7.8 million arising from the Power & Machinery segment on the back of higher
revenue
� Improvement of MRO segment attributable to the inclusion of Deleum Primera’s post acquisition results of RM0.5
million during the quarter under review.
106.5
155.2
12.5
19.3
7.2
13.5
-
5.0
10.0
15.0
20.0
25.0
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
31 Dec 2011 31 Dec 2012(unaudited)
PBT
/PA
TA
MI (R
M M
illion)
Revenue (
RM
Million)
Revenue Profit Before Tax PATAMI
40
CUMULATIVE Q4 FY2012 RESULTS
REVENUE/PBT/PATAMI � The cumulative Q4 revenue increased by 19.4% from the
previous financial year ended 2011(FY2011)
� The increase was due to higher contribution by Power &
Machinery segment of RM62.1 million, arising from:
� Increased demand from customers on the back of robust
exploration and production activities
� Increased sales mainly from retrofit projects and valves
and regulators
� Oilfield Services segment increase of RM11.0 million - due
to higher deployment of wireline equipment and related
products achieved in the first 6 months of the year
� MRO segment increased by RM3.8 million attributable to:
� Inclusion of Deleum Primera’s post acquisition revenue
of RM5.1 million upon completion of the acquisition
� Offset by the decline in revenue from Deleum Rotary by
RM1.3 million due to lower business activities
� PBT increased by RM21.8 million or 47.6% from FY2011
� The increase is largely due to:
� RM19.3 million from Power & Machinery segment – higher profit contribution on the back of robust exploration and
production activities
� Oilfield Services segment by RM1.2 million – contribution from oilfield chemicals and higher sales from wellhead
maintenance spares
� MRO segment by RM1.0 million – mainly attributable to inclusion of Deleum Primera’s results post completion and
lower losses recorded by Deleum Rotary
396.3
473.2
45.7
67.5
29.0
44.5
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
Year ended31 Dec 2011
Year ended31 Dec 2012(unaudited)
PBT
/PA
TA
MI (R
M M
illion)
Revenue (
RM
Million)
Revenue Profit Before Tax
41
SEGMENTAL REPORTING FOR Q4 FY2012
Segment Revenue Composition for Cumulative Q4 ended 31/12/2011
Segmental Reporting (External Revenue)
Segment Revenue Composition for Cumulative Q4 ended 31/12/2012
Q4 Ended 31/12/12
Q4 Ended 31/12/11
% ChangesCumulative Q4 Ended 31/12/12
Cumulative Q4 Ended 31/12/11
% Changes
RM'000 RM'000 RM'000 RM'000
Power and Machinery 139,061 83,984 65.6% 379,467 317,333 19.6%
Oilfield Services 7,695 20,030 -61.6% 76,938 65,956 16.7%
MRO 8,493 2,530 235.7% 16,835 13,014 29.4%
Total Group revenue 155,249 106,544 45.7% 473,240 396,303 19.4%
Power and Machinery
80.2%
Oilfield Services16.3%
MRO3.6%
Power and Machinery
80.1%
Oilfield Services16.6%
MRO3.3%
42
RECENT CORPORATE EVENTS
15 Mar 2012: 1 for 2 bonus
issue
22 May 2012: FY2012-1st
quarter results
24 May 2012: FY2011 Results & Announcement of entitlement date for bonus issue
14 Aug 2012: FY2012-2nd
quarter results, interim dividend and acquisition
of NPSB
3 Sep 2012: Appointment
of GCOO
1.84
1.55
1.83
1.67
1.43
26 Nov 2012: FY2012-3rd
quarter results
1.80
4 Jan 2013: Proposed equity subscription in
NSERC
1.91
43
CORPORATE DIRECTORY
44
Disclaimer:
•The content of this presentation includes materials which may be capable of being interpreted as forward-looking statements. Such statements are merely predictions, based on circumstances and reasonable assumptions which apply only at the date of such statements. Accordingly, no reliance should be placed on any forward-looking statement, express or implied, contained in this presentation.
•Forward-looking statements involve assumptions concerning various risks and uncertainties including, but not limited to, the Company’s development activities, the existence of competent management, the Company’s financial activities, the domestic and global economy, changes in applicable laws and regulations, the obtaining of approvals and stock market activity. Actual results, performance and levels of activity may differ significantly from those expressed or implied in any forward-looking statements. As such, the Company gives no assurances that any of the events anticipated by any forward-looking statements will actually occur, or what the actual outcome or results of such events will be. In addition, the Company gives no undertaking that it will update or alter any forward-looking statements, irrespective of what may transpire after such statement is made.
For more information, please visit us at www.deleum.com
Updated as at 26 February 2013
