CONTENTS 2 Key Financial Indicators and 31 Corporate Social Responsibility 140 Analysis of Shareholdings Key Financial Highlights 34 Statement on Corporate Governance 143 List of Properties 4 Corporate Legal Structure 44 Statement of Internal Control 146 Corporate Directory 6 Our Corporate Statement 48 Audit and Risk Management 148 Notice of Annual General Meeting 8 Corporate Information Committee Report 150 Statement Accompanying the Notice of 9 Profile of Directors 54 Additional Information Annual General Meeting 14 Key Management Team 55 Statement on Directors’Responsibility 16 Chairman’s Statement 56 Financial Statements • Form of Proxy 20 Management’s Review of Operations Ambitious 7th Annual General Meeting Ballroom 3, First Floor Sime Darby Convention Centre 1A, Jalan Bukit Kiara 1 60000 Kuala Lumpur 15 June 2009, Monday, 2 p.m. 2 SCOMI GROUP BHD ANNUAL REPORT 2008 KEY FINANCIAL INDICATORS AND KEY FINANCIAL HIGHLIGHTS In RM’000 2008 2007 2006 2005 2004 Turnover 2,106,140 1,995,530 1,577,495 1,067,972 590,457 EBITDA 291,364 441,277 253,129 271,031 103,146 Depreciation 74,524 65,987 53,984 (41,848) (17,640) Finance costs 75,168 87,946 78,207 (42,181) (12,017) Share of profit in associated companies 28,040 23,570 30,084 6,429 114 Share of profit from jointly controlled entities – – – 19 1,000 PBT 140,213 286,416 120,722 186,812 74,603 Taxation (3,928) (4,261) (12,982) (13,937) 5,571 PAT 136,285 282,155 107,740 172,875 69,032 Minority interests 19,732 25,026 15,326 21,184 (7,538) PAT after minority interests 116,553 257,129 92,414 151,691 61,494 Number of shares assumed in issue (‘000) 1,021,839 1,019,705 1,005,352 992,080 894,134 Weighted average number of shares assumed in issue (‘000) 1,006,342 1,004,806 995,025 972,877 884,598 Weighted average number of shares used to compute diluted earnings per share (‘000) 1,016,009 1,037,091 1,017,507 1,015,833 932,431 Basic – Net EPS (RM)** 11.58 sen 25.59 sen 9.29 sen 15.59 sen 7.0 sen Fully diluted – Net EPS (RM)@ 11.47 sen 24.79 sen 9.08 sen 14.93 sen 6.6 sen Notes ** Based on PAT after minority interests and on the weighted average number of shares assumed to be issued in the respective years. @ Based on PAT after minority interests and on the weighted average number of shares assumed to be issued in the respective years after taking into consideration the dilutive effect of unexercised ESOS. 2004 – 2006 The financial highlights on pages 2 and 3 reflect the actual audited results of Scomi Group Bhd, with certain numbers restated to reflect retrospective effects as a result of adoption of new or revised Financial Reporting Standards in the respective years. SCOMI GROUP BHD ANNUAL REPORT 2008 3 Total Assets (RM Million) 2008 RM2,944 mil 2007: RM2,707 mil / 2006: RM2,593 mil Earnings per Share (Basic) 2008 11.6 sen 2007: 25.6 sen / 2006: 9.3 sen Revenue (RM Million) Net Tangible Assets (RM Million) 2008 2,106 2008 2007 1,955 2006 1,577 2005 RM531 mil 1,068 2004 590 2007: RM442 mil / 2006: RM92 mil Profit before Tax (RM Million) Shareholders’ Fund (RM Million) 2008 2008 140 2007# 286 2006 121 RM918 mil 2005* 187 2007: RM802 mil / 2006: RM600 mil 2004 75 Net Assets per Share Profit after Tax after Minority Interests (RM Million) (Attributable to equity holders of the parent) 2008 117 2008 2007# 257 2006 92 88 sen 2005** 152 2004 61 2007: 77 sen / 2006: 59 sen Notes * This includes the exceptional gain arising from the disposal of the machine shops amounting to RM151.447 million. ** This includes the exceptional gain arising from the disposal of the machine shops amounting to RM139.005 million. # This includes the exceptional gain arising from the divestment of 19.9% shareholding in Scomi Oilfield Limited (Bermuda) amounting to RM140.046 million. 4 SCOMI GROUP BHD ANNUAL REPORT 2008 SCOMI GROUP CORPORATE LEGAL STRUCTURE as at 30 April 2009 SCOMI GROUP BHD 43%# 60% 80% SCOMI MARINE BHD SCOMI OILSERVE SDN BHD Bermuda SCOMI OILFIELD LIMITED 51% Gemini Sprint Sdn Bhd Labuan, Malaysia Bermuda Oilserve (L) Berhad Scomi Oiltools Bermuda Limited Emerald Logistics Sdn Bhd Australia 51% Labuan, Malaysia Scomi Oiltools Pty Ltd Marineco Limited Labuan, Malaysia New Zealand 40% Trans Advantage Sdn Bhd SCOMI CAPITAL LIMITED Scomi Oiltools (NZ) Pty Limited Singapore Algeria Scomi Marine Services Pte Ltd KMC Oiltools Algerie EURL SCOMI SOLUTIONS SDN BHD 49% British Virgin Islands Alexandria Free Zone, Egypt King Bridge Enterprises Scomi Oiltools Egypt SAE Limited 50%* Nigeria British Virgin Islands Titan Tubulars Nigeria Limited Singapore SCOMI ECOSOLVE LIMITED Goldship Pte Ltd 51% Oman Scomi Oiltools Oman LLC Singapore CH Ship Management Jersey Pte Ltd Scomi Oiltools (Africa) Limited • 60% Nigeria Singapore Wasco Oil Service Company Grundtvig Marine Pte Ltd Nigeria Limited • 95 % Indonesia PT Batuah Abadi Lines • 96% Gabon Oiltools Gabon SA 81% Indonesia PT Rig Tenders Indonesia Tbk1 Scotland Scomi Oiltools (Europe) Limited 29% Singapore • Russia CH Offshore Ltd2 Scomi Oiltools (Rus) Limited Liability Company Singapore CH Logistics Pte Ltd Thailand Scomi Oiltools (Thailand) Ltd • Singapore Sea Master Pte Ltd Scomi Oiltools (Kemanan) Sdn Bhd Scotland Scomi Oiltools (Shetland) Limited The Netherlands KMC Oiltools BV Cayman Islands Scomi Oiltools Ltd Scomi OBM Terminal Sdn Bhd SCOMI GROUP BHD ANNUAL REPORT 2008 5 70% SCOMI CHEMICALS SDN BHD SCOMI ENGINEERING BHD Scomi Sosma Sdn Bhd Scomi Barite Sdn Bhd Scomi Transportation Systems Sdn Bhd 51% KMC All Star Chemical Sdn Bhd 50% Brunei Scomi Rail Bhd Sosma (B) Sdn Bhd Alberta, Canada Scomi Coach Sdn Bhd Scomi Oiltools Canada Inc 93% France • Scomi Coach Marketing Sdn Bhd Scomi Anticor SA Texas, USA Scomi Special Vehicles Sdn Bhd Scomi Oiltools Inc Scomi Trading Sdn Bhd KMCOB Capital Berhad Scomi OMS Oilfield Holdings Sdn Bhd Cayman Islands Scomi Oiltools (Cayman) Ltd SCOMI ENERGY SDN BHD Scomi OMS Oilfield Services Sdn Bhd • Kish Island, Iran 70% Saudi Arabia Scomi Oiltools Kish Limited 70% Scomi NTC Sdn Bhd Scomi OMS Oilfield Services Scotland Scomi Enviro Sdn Bhd Arabia Ltd Scomi Oiltools (Europe) Limited India • Russia Urban Transit Private Limited Scomi Oiltools (Rus) Limited Liability Company Singapore Scomi OMS Oilfield Services Pte Ltd British Virgin Islands Scomi Oiltools South America Limited 95% Indonesia • Venezuela PT Scomi OMS Oilfield Services Scomi Oiltools De Venezuela SA Thailand • Venezuela Scomi OMS Oilfield Services Premium Industrial Machining SA (Thailand) Ltd Mauritius Australia Scomi Oiltools Overseas Scomi OMS Oilfield Services (M) Limited 4% 48% (Australia) Pty Ltd Scomi Oiltools Sdn Bhd SCOMI KMC SDN BHD British Virgin Islands Scomi OMS Oilfield Services Ltd Singapore Scomi Oiltools (S) Pte Ltd • 95 % Indonesia PT Scomi Oiltools • Mexico Notes Oilfield Services de Mexico S de RL de CV * Does not include 0.20% owned by Wasco Oil Service Company Nigeria Limited. # Includes 0.05% held by Scomi Energy Sdn Bhd. • Mexico 1 This corporate structure does not include the associated companies of PT Rig Tenders Indonesia Tbk. Scomi Oiltools de Mexico S de RL de CV 2 This corporate structure does not include the subsidiaries of CH Offshore Ltd. Public Listed Entity. • Mumbai, India KMC Oiltools India Private Limited • Except as otherwise expressly stated, all companies in this corporate structure are incorporated in Malaysia. • Except as otherwise expressly stated, all companies in this corporate structure are wholly-owned by their respective holding companies. OUR CORPORATE STATEMENT With a presence in 68 locations across 31 countries, the Scomi group of companies is a global technology enterprise in the energy and logistics industries. We are a global technology enterprise. Our global reach, capabilities and talent provide us with the necessary resources to develop and own new technology in all areas of our business. We focus on Energy & Logistics. All of our 4 business units are focused in the Energy and/or Logistics sectors with the ability to compete globally. All of us in the Scomi family should remember that any new initiatives we undertake will focus on these areas of business. We provide innovative solutions. We innovate to respond to an evolving environment. Our products and operations meet today’s needs while anticipating tomorrow’s. We are committed to developing competitive and innovative solutions to create efficiency, add value and grow with our customers to shape our future. We aim to realise potential for our stakeholders. • Our customers: We will develop and offer customers innovative and competitive products and services that help them grow their business. • Our shareholders: We are committed to providing long-term superior returns to our shareholders. • Our people: We aim to provide our employees with developmental opportunities so they can succeed on personal and professional levels. • Our suppliers: We will treat our suppliers as our partners in the mutual interest of business growth. • Our society / environment: As a good corporate citizen, we will give back to the communities we operate in worldwide. 8 SCOMI GROUP BHD ANNUAL REPORT 2008 CORPORATE INFORMATION DIRECTORS REGISTRAR Tan Sri Datuk Asmat Bin Kamaludin (Chairman) Symphony Share Registrars Sdn Bhd Tan Sri Nik Mohamed Bin Nik Yaacob Level 26, Menara Multi-Purpose Datuk Hamzah Bin Bakar Capital Square Datuk Haron Bin Siraj No. 8, Jalan Munshi Abdullah Dato’Mohammed Azlan Bin Hashim 50100 Kuala Lumpur, Malaysia Dato’Mohamed Azman Bin Yahya Tel : +603 2721 2222 Foong Choong Hong Fax : +603 2721 2530 / 31 Sreesanthan A/L Eliathamby Shah Hakim @ Shahzanim