phase two phase three - dialog group berhad - dialog group

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02 03

CORPORATE GOVERNANCE ADDITIONAL INFORMATIONEVENT & HIGHLIGHTSSUSTAINABILITY REPORTMANAGEMENT DISCUSSION AND ANALYSISKEY MESSAGESOVERVIEW

THE PENGERANG STORY

“BUILDING THE FUTURE TODAY”

In 2007, DIALOG identified Pengerang as a suitable location to develop a deepwater petroleum terminal capable of handling Very Large Crude Carriers (“VLCC”) to capture Asia Pacific demand growth in the next 30 years.

Why Pengerang was the perfect location:

• Next to international shipping lanes

• Deepwater (up to 24 metres) jetty facilities

• Naturally sheltered harbour

• All-weather port

• Proximity to Singapore – existing major refining and petrochemical hub

The development was launched in June 2009 when DIALOG signed the Memorandum of Understanding (“MOU”) with the State Government of Johor Darul Ta’zim.

Pengerang Deepwater Terminals (“PDT”) has attracted both domestic and international investors and catalysed the growth of the Pengerang Integrated Petroleum Complex (“PIPC”), with investments totalling over RM100 billion to date.

With continuous support from the Malaysian Government, what began as a dream in 2007 has now become reality for DIALOG and its partners. And the Pengerang Story is still unfolding.

OVERVIEW

PHASE ONE

PHASE ONE PHASE TWO PHASE THREE

PITSB PLNG2 3A

PT2SB PHASE 3 &FUTURE PHASES

2014Commenced Operations

Current Storage Capacity

1.7 million m3

An independent terminal which commenced operations in April 2014 with an oil storage capacity of 1.3 million m3 complete with a dedicated deepwater jetty facility. Another 430,000 m3 storage capacity was fully operationalised in January 2020.

PHASE 1: PETROLEUM TERMINAL

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04 05


PHASE THREE

PHASE 3: LAND RECLAMATION

Area

300 acres 2019Completed

PHASE TWOPHASE 2A: PETROLEUM &

PETROCHEMICALS TERMINAL

PHASE 2B: LNG TERMINAL

Current Storage Capacity

1.3 million m3 2018/2019Commenced Operations

400,000 m3

Storage Capacity

Commenced Operations

2017

For Phase 2A, construction of the dedicated petroleum and petrochemicals terminal with storage capacity of 1.3 million m3 commenced in 2015. Commercial operations commenced in 2018.

Land reclamation has been completed as scheduled at the end of 2019. Construction is in progress for a storage terminal, common tankage facilities with shared infrastructure, and deepwater marine facilities at Jetty 3, for Phase 3. Alongside this, a Long Term Storage Agreement has also been secured with BP Singapore Pte. Limited with expected commissioning in mid-2021.

THE FUTURE OF PDT

The Group continues to actively pursue potential customers for Phase 3, which will consist of dedicated petroleum and petrochemical storage terminals for medium to long term clients, including refinery and petrochemical plants within the PIPC.

The remaining 500 acres of land comprising reclaimed land and the buffer zone have already been earmarked for the further development of Phase 3 and future phases. Together with our partners, we are strongly committed to developing a vibrant petroleum downstream manufacturing centre and realise our collective vision of transforming Pengerang into an international petroleum and petrochemical hub of the future.

PHASE 3A: CURRENT DEVELOPMENT

430,000 m3 2021StorageCapacity

Target Completion

Common Tankage Facilities with Shared Infrastructure and Jetty 3

In Phase 2B, the Liquefied Natural Gas (“LNG”) regasification facilities with 2 LNG storage tank units of 200,000 m3 each commenced operations in November 2017.

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06 07


ABOUT OUR REPORT

RESILIENTThe theme of this year's report represents DIALOG's standing today in the midst of the unprecedented challenges brought on by the COVID-19 pandemic. The cover design symbolises DIALOG's strength, agility and optimism whilst remaining focused on delivering on our long-term goals.

We create value from our 6 identified capitals through the implementation of 5 key strategies:

5 STRATEGIES

CROSS REFERENCES

FORWARD-LOOKING STATEMENTS

This report contains some forward-looking statements relating to the Group that are based on the Group’s management beliefs, and assumptions made by the Group’s management. Such statements are by their nature subject to uncertainties and risks. These forward-looking statements reflect the current views of the Group’s management with respect to future events and are not a guarantee of future performance or developments. Due to uncertainties and assumptions, forward-looking events and circumstances might not occur in the way the Group expects, or at all.

6 CAPITALS

Financial

Intellectual

Human

Social

Natural

Manufactured

TABLE OF CONTENTS

02 The Pengerang Story06 About Our Report08 Who We Are08 Vision/Mission/Values

KEY MESSAGES10 10-Year Financial Highlights10 FY2020 Business Highlights12 COVID-19 Community Support Highlights14 Executive Chairman’s Statement20 Board of Directors21 Board of Directors’ Profile25 Key Senior Management’s Profile26 Management’s Profile (Malaysia)31 Management’s Profile (International)35 Corporate Milestones36 What We Do38 Our Business Model for Value Creation40 Global Presence

MANAGEMENT DISCUSSION AND ANALYSIS42 Statement from The Group’s Chief Operating Officer46 Financial Performance Review48 Key Performance Indicators49 5-Year Financial Summary50 FY2020 Review of Operations56 Awards and Achievements58 Key Risks and Opportunities62 Strategic Alliances

SUSTAINABILITY REPORT65 About This Report66 Sustainability Governance68 Economic Performance70 Health, Safety & Environment79 Our People83 Learning & Development86 Corporate Social Responsibility

EVENTS & HIGHLIGHTS94 Calendar of Events96 Media Highlights

CORPORATE GOVERNANCE98 Corporate Information99 Corporate Structure100 Organisation Structure101 Corporate Governance Overview Statement109 Audit Committee Report111 Statement on Risk Management and Internal Control

ADDITIONAL INFORMATION114 Share Performance115 Enhancing Shareholder Value116 Shareholdings Information119 List of Top Ten Properties121 Group Corporate Directory123 Notice of The 32nd Annual General Meeting and Dividend Entitlement126 Statement Accompanying The Notice of The 32nd Annual General Meeting of The Company - Proxy Form

The icons above are used throughout this Integrated Report.

Tells you where you can find more information within the reports

Tells you where you can find more information online at www.dialogasia.com

www.

32ND ANNUAL GENERAL MEETING OF

DIALOG GROUP BERHAD

Virtual Meeting through LIVE streaming from the broadcast venue of DIALOG Tower

18 November 2020Wednesday

10.00 a.m.

This Integrated Annual Report can also be downloaded as a PDF file or viewed at www.dialogasia.comwww.

SCOPE DIALOG GROUP BERHAD (“DIALOG”)’s Annual Report is the main report covering all of the Group’s primary business activities and our business segments. We seek to present information that is relevant to stakeholders for the financial year ended 30 June 2020 and up to the last practicable date of 21 September 2020. This report presents information that is accurate and relevant at time of publication.

INTEGRATED REPORTINGThis is the 2nd year since we embarked on our Integrated Reporting journey. We will continue to enhance our reporting and aim to better convey our Group’s performance and value creation story for all our stakeholders.

SUSTAINABILITY REPORTINGDIALOG believes in managing our business in a holistic, responsible and sustainable manner. In this regard, the material sustainability matters for DIALOG and its businesses have been presented in accordance with Bursa Malaysia’s Sustainability Reporting Guide.

REGULATIONS COMPLIED WITH• Bursa Malaysia Main Market Listing

Requirements• Companies Act 2016• Malaysian Financial Reporting Standards• International Financial Reporting

Standards• Bursa Malaysia’s Sustainability Reporting

Guide

FEEDBACKWe welcome your feedback on our report which is available to all stakeholders on our website www.dialogasia.comwww.

Diversification across the upstream, midstream and downstream sectors

Growing long term Recurring income

Active recruitment, development and retention of Talent

Cultivating strong relationships with Stakeholders

Development of proprietary Technology for use in our businesses

DIALOG Headquarters

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TECH

Feature wall, DIALOG Headquarters

KEY MESSAGES10 10-Year Financial Highlights10 FY2020 Business Highlights12 COVID-19 Community Support

Highlights14 Executive Chairman’s

Statement20 Board of Directors21 Board of Directors’ Profile25 Key Senior Management’s

Profile26 Management’s Profile

(Malaysia)31 Management’s Profile

(International)35 Corporate Milestones36 What We Do38 Our Business Model for Value

Creation40 Global Presence

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08

MANAGEMENT DISCUSSION AND ANALYSISKEY MESSAGESOVERVIEW

DIALOG is a leading integrated technical service provider to the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry. Established in 1984, DIALOG has grown both organically and through strategic alliances with internationally-renowned technology partners. We serve a diverse range of customers that include multinational oil majors, national oil companies as well as multinational engineering and service providers located throughout the world. Our comprehensive variety of services include Upstream Assets and Services, Midstream Assets and Services - Tank Terminals and Supply Base, Engineering, Procurement, Construction and Commissioning, Plant Maintenance & Catalyst Handling Services, Specialist Products & Services, Fabrication, Digital Technology and Solutions. DIALOG is listed on the Main Market of Bursa Malaysia with a market capitalisation of approximately RM22 billion (September 2020). DIALOG was included into the FBM KLCI in June 2018.

OUR VISION

OUR MISSION

OUR VALUES

To be the leading integrated technical service provider to the upstream, midstream and downstream sectors in the oil, gas and petrochemical industry in Malaysia and internationally.

• To continuously enhance competitiveness, competence and leadership in the provision of our services.

• We shall honour our commitment to quality and timely job completion as well as unfailing protection of health, safety and the environment.

• We shall, as responsible and caring corporate citizens, actively support the Nation’s aspirations and serve the best interests of the communities in which we work and live.

• We shall continuously develop and retain a highly skilled, motivated and professional workforce to generate the dynamics that will propel our business into strategic growth areas with global reach and a diversified sustainable earnings base.

WHO WE ARE

INTEGRITY HSE QUALITY COMPETENCY EXCELLENCE

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10 11

10-YEAR FINANCIAL HIGHLIGHTS1,

208

3.3

160

201 22

5

‘20 ‘20 ‘20‘19 ‘19 ‘19‘18 ‘18 ‘18‘17 ‘17 ‘17‘16 ‘16 ‘16‘15 ‘15 ‘15‘14 ‘14 ‘14‘13 ‘13 ‘13‘12 ‘12 ‘12‘11 ‘11 ‘11

1,63

4

3.7

182

2,23

7

4.0

185

232

2,55

2

4.4229

277

2,35

8

5.5285

370

2,53

4

5.730

136

93,39

3

6.937

344

9

3,11

1

9.1

528

628

2,38

6 9.555

265

3

2,30

3

11.2

648

747

REVENUE (RM’ million) NET EARNINGS PER SHARE (sen)PROFIT BEFORE TAX& PROFIT AFTER TAX (RM’ million)

Included in the dividend payment for FY2014 was special share dividend of one treasury share for every one hundred and twenty-five ordinary shares.

Profit Before Tax Profit After Tax

29

20

‘20‘19‘18‘17‘16‘15‘14‘13‘12‘11

15 15 16 13 13 15 15 16

583 1,

194 1,35

2 1,56

0

1,98

0

2,41

5

3,11

1

3,50

1 3,79

1

4,13

2

SHAREHOLDERS’ EQUITY (RM’ million) & RETURN ON SHAREHOLDERS’ EQUITY (%)

13

‘20‘19‘18‘17‘16‘15‘14‘13‘12‘11

25

28

32

40

47

58

62

67

73

NET ASSETS PER SHARE (sen)

61

‘20‘19‘18‘17‘16‘15‘14‘13‘12‘11

74 80

102 11

3 117 14

9

180 21

4

175

DIVIDEND PAYMENT (RM’ million)

Return on Shareholders’ Equity

Shareholders’ Equity

FY2020 BUSINESS HIGHLIGHTS

430,000 m3

STORAGE CAPACITY

PENGERANG INDEPENDENTTERMINALS

MALAYSIA

COMMISSIONED ADDITIONAL

MALAYSIA

1,091WITH TOTAL THROUGHPUT OF

30 MILLION MT

PENGERANG MARINE OPERATIONS

HIGHESTVESSEL CALLS

SINGAPORE

SECURED

LARGEST EXTERNAL FLOATING ROOF TANK

MALAYSIA

INCREASED STAKE IN

TO 95%HALLIBURTON

BAYAN PETROLEUM

120,000 m3

STORAGE CAPACITY

DIALOG TERMINALS LANGSAT 3

MALAYSIA

COMMISSIONED

MALAYSIA

MAN-HOURS

PLANTTURNAROUND

AUSTRALIA

1st

TANK TERMINALEPC PROJECT IN

AUSTRALIA

INDONESIA

COMPLETED COMPLETED

LARGE COOLINGWATER INTAKE PIPE

PETRONAS

MALAYSIA

TURNAROUNDCONTRACTOR FOR

MASTER SERVICEAGREEMENT

MALAYSIA

PHASE 3, PENGERANGDEEPWATER TERMINALS

LANDRECLAMATION

TIER 1

300 ACRESMILLION2

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12 13

COVID-19 COMMUNITY SUPPORT HIGHLIGHTS

The COVID-19 pandemic has impacted everyone, across all walks of life and in ways previously unimaginable. DIALOG is committed to do our part in supporting our communities, to overcome the ongoing challenges brought on by the pandemic. During FY2020, DIALOG contributed RM3.3 million towards

COVID-19 assistance and relief efforts, for front liners and low income communities across the country.

As the situation continues to evolve, we will continue to do our part to provide assistance, and support relief efforts to those affected by this pandemic.

RM220,000

TM

Movement Control Order ("MCO") Cashless Food

Aid Programme1,009 Families

COVID-19Community Support

Activities & Initiatives

ContributedRM3.3 million

In-kind donation worth more thanRM700,000

ECG Machines

Infrared Thermometers

Syringe Pumps

PPE (5,000 pieces)

Hospital Sungai Buloh, Hospital Kuala Lumpur, Hospital Tengku Ampuan Afzan Pahang,

Pusat Perubatan Universiti Malaya ("PPUM"), Hospital Sultanah Aminah Johor Bahru,

Hospital Enche Besar Hajjah Khalsom Kluang.

RM1 million

COVID-19 Health Care Workers Support Fund

& Equipment Fund

1,000,000Masks distributed to:

More than3,000 families

More than100 schools

Government Offices

DIALOG Employees

MyKasih NGOs & Partners

Hospitals

PDRM

State Governments

Tabung Bencana Johor

RM500,000

EXECUTIVE CHAIRMAN'S STATEMENT

Dear Valued Shareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report for Dialog Group Berhad (“DIALOG” or “the Group”) for the financial year ended 30 June 2020 (“FY2020”). ‘‘

‘‘

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14 15

TAN SRI DR NGAU BOON KEATExecutive Chairman

OUR PERFORMANCE

I am pleased to report that DIALOG delivered yet another commendable result for the financial year ended 30 June 2020. Net operating profit after tax including joint ventures and associates grew by 12.2% to RM619.6 million from RM552.3 million. During the financial year, the Group booked a RM28.5 million non-cash fair value gain from the acquisition of Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”), which resulted in HBP becoming a subsidiary company with effect from August 2019. With this, the Group’s total net profit after tax for the financial year ended 30 June 2020 was RM648.1 million.

The strong and resilient performance achieved in the current financial year was mainly contributed by our Malaysian operations which saw higher contributions from the Group’s terminals business especially from our DIALOG Terminals Langsat facility and Pengerang Independent Terminals Sdn. Bhd. (“PITSB”).

In tandem with the above, the Group’s balance sheet has also continued to strengthen with total assets expanding by 7.2% to RM7.19 billion from RM6.71 billion a year ago. Total shareholders’ equity as at 30 June 2020 stood at RM4.13 billion, and return on shareholders’ equity for FY2020 was 15.9%.

Overall, the Group’s performance for FY2020 has not been materially affected by COVID-19. The Group’s business has mostly been categorised as essential in the respective countries where it operates, and has thus continued to operate throughout this pandemic at various capacities in compliance with various local health requirements. Nonetheless, the

F I H S NM D R T S TECH

Group has proactively taken precautionary measures to preserve our cash flow, financial strength and stability. These include enhanced credit risk monitoring controls, reprioritisation of capital and operational expenditures, ongoing cost management initiatives, and also a salary reduction exercise for senior and middle management.

Given the continued need to exercise financial prudence in the wake of the prevailing economic uncertainties brought on by the COVID-19 pandemic, the Board recommends a lower final cash dividend of 1.90 sen (FY2019: 2.30 sen) per ordinary share for FY2020. Including the interim dividend of 1.20 sen per ordinary share paid in June 2020, this brings the total dividend for FY2020 to 3.10 sen (FY2019: 3.80 sen) per ordinary share.

On 11 September 2020, the Group also lodged its inaugural Islamic notes issuance programme of up to an aggregate of RM3.0 billion in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar (“Sukuk Programme”) with the Securities Commission Malaysia (”SC”). The purpose of this programme is to increase the financing and balance sheet management flexibility for the Group.

The collective measures above are to ensure that DIALOG remains resilient, and is able to weather the prolonged uncertainties that lie ahead, whilst preserving the value that has been created over the years for all stakeholders. The Board appreciates the understanding, support and trust of our shareholders, as we remain committed to creating sustainable value for all of our stakeholders.

ROE

15.9%TOTAL SHAREHOLDER

EQUITY

4.13BRM

Pengerang Deepwater Terminals (Northern View)

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EXECUTIVE CHAIRMAN’S STATEMENT

OUR PROSPECTS

The economic disruption and demand destruction brought about by the COVID-19 pandemic is unlike any other crisis before. In remains unclear how long this will last, as ongoing geopolitical tensions continue to add to global economic uncertainties as well. Nevertheless, according to the International Energy Agency, global oil demand is forecasted to rebound in 2021, of which Asia is estimated to account for 77% of oil demand growth through to 2025. Overall, the economic environment is expected to remain extremely challenging in the short to medium term.

In view of the above, DIALOG will remain focused and steadfast in the pursuit of the following key long term strategies, which have helped the Group weather different economic cycles in the past:• Diversification across the upstream, midstream and

downstream sectors of the oil, gas & petrochemical industries;

Phase 3 of PDT has been designated for the development of more dedicated petroleum and petrochemical storage terminals for medium to long term customers, potentially comprising oil traders, multinational oil companies, refineries and petrochemical plants. This will support the further development of various downstream operations including those of the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.

In line with the above, the Phase 3 land reclamation has been completed, and the construction of a storage terminal, common tankage facilities (including shared infrastructure) and deepwater marine facilities (“Jetty 3”) for the Long Term Storage Agreement with BP Singapore Pte. Limited remains on track to commence commercial operations in mid-2021.

With approximately another 500 acres available for development, PDT’s perfect location and one-stop integrated hub offering provides a compelling value proposition to oil,

• Growing long-term recurring income across all sectors;• Active recruitment, development and retention of talent;• Cultivating strong relationships with stakeholders including

customers, suppliers, partners, bankers, regulators and government authorities; and

• Development of proprietary technology for use in our businesses.

With our dedicated management team and the long-term business strategies above, we remain confident that our business is well structured to manage and sustain itself through periods of economic uncertainty, oil price volatility and currency movements.

Looking forward in the midstream sector, the ongoing development of Pengerang Deepwater Terminals (“PDT”) into the largest petroleum and petrochemical hub for the Asia Pacific region, will continue to take centre stage.

gas & petrochemical players who are looking to capture Asia Pacific demand growth over the next 30 years.

During FY2020 we commenced full operations for an additional 430,000 m3 of storage capacity in Phase 1E of Pengerang Independent Terminals Sdn. Bhd., and 120,000 m3 of storage capacity at our DIALOG Terminals Langsat facility (“DTL”).

In keeping with our growth aspirations for our terminals business, DIALOG is investing another RM100 million for the addition of another 85,000 m3 of storage capacity to store clean petroleum products at our DTL facility, that will be completed and ready for operations by the end of 2021. With 17 acres (6.87ha) of land still available, approximately another 200,000 m3 of storage capacity can be added to DTL over the longer term, thus bringing the total capacity at the DTL facility to over 1.0 million m3.

EXECUTIVE CHAIRMAN’S STATEMENT

SUSTAINABILITY

The Board and Management recognises that the sustainability of the Group’s performance can only be possible with a strong foundation that promotes accountability, transparency, integrity and ethical behaviour at all times. Hence, the Board and Management will continue its long-standing commitment in upholding these principles through the implementation of good corporate governance practices as advocated by the Malaysian Code on Corporate Governance ("MCCG").

The Group also recognises the serious threat that corruption poses to corporates and the economy. Accordingly, we have introduced and implemented an Anti-Bribery & Corruption Policy during the year to prevent corrupt practices, and provide greater accountability and transparency to our stakeholders.

Combined with a clear focus on our core values of Integrity, Health, Safety & Environment (“HSE”), Quality, Competency and Excellence, the Group remains steadfast in creating value for all our stakeholders and positively impacting the communities in which we operate. Further details on our sustainability journey are in the enclosed Sustainability Report.

ACkNowLEdgEMENTS

On behalf of the Board of Directors, I am pleased to welcome our new Non-Executive Directors, Encik Mohamad Hafiz bin Kassim (representing the Employees Provident Fund Board) and Puan Juniwati Rahmat Hussin. DIALOG will definitely benefit from their vast experience in investment management, and petroleum and petrochemical operations.

We would also like to extend our sincere thanks to Tunku Alizakri bin Raja Muhammad Alias for his contributions during his tenure on our Board, and also to Mr. Chew Eng Kar for his 21 years of service to the Board.

The Board of Directors and I would like to thank all our esteemed customers, principals as well as technology and business partners and their associates, for their continuous support to the Group. I would also like to thank our shareholders for their unwavering support and confidence in the Group.

I am fortunate to have on the Board a group of exceptional individuals. To all our Board members, I wish to express my sincere appreciation for your invaluable insights and counsel, which has seen the Group grow from strength to strength over the years. Last but not least, I thank the Management and the entire DIALOG family for their dedication and commitment to the Group.

DIALOG Terminals LangsatBayan Complex

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18 19

Today, we are the 2nd largest terminal owner cum operator in the region with a current operating capacity of 4.6 million m3. We will continue to invest in phased capacity expansions for dedicated long term customers across our midstream terminals business portfolio, in line with the Group’s longer term strategy to grow its sustainable and recurring income.

In the downstream sector, we will continue to leverage on our strengths and established track record in integrated technical services comprising Engineering, Procurement, Construction & Commissioning (“EPCC”), Plant Maintenance & Catalyst Handling Services, and Specialist Products & Services. With the completion of PDT Phase 2 and the refinery projects at RAPID, we are also now actively involved in the plant maintenance services for these projects, in addition to other existing projects.

While activities are expected to be slower in FY2021, we will continue to build and strengthen our competencies by investing and multi-skilling our workforce to ensure we remain efficient and competitive. Alongside the investment in our people is also our investment in technology. DIALOG has long leveraged on technology to differentiate ourselves from our competitors. In this regard, we intend to accelerate our technology initiatives to reinforce our competitiveness.

Moving on to upstream, following the drop in oil prices and production cuts by oil producers, the Group will continue to proactively manage the cash flow of our upstream assets together with our respective partners accordingly.

TAN SRI dR NgAU BooN kEATExecutive Chairman

During FY2020, the Group acquired an additional 45% equity interest in Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”) from our joint venture partners, Halliburton International, Inc. This resulted in HBP becoming a subsidiary with effect from August 2019.

Looking beyond the current low oil price environment and given the Group’s long term business focus, this was the right opportunity for us to expand and deepen our upstream investments, in line with our diversified business model strategy. Increased upstream activities also provide added opportunities for us to participate in other parts of the value chain in the field redevelopment cycle, particularly in the provision of engineering and specialist technical services.

Moving forward, we will continue to build our knowledge and experience in the upstream sector, and actively look for opportunities to increase our development and production services and assets.

Barring any unforeseen circumstances, the Group is optimistic that its performance will remain positive for the financial year ending 30 June 2021.

Sustainability Report: pages 64 to 92

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20 21

BOARD OF DIRECTORS BOARD OF DIRECTORS' PROFILE

CHAN YEW KAI was appointed to DIALOG Board on 23 September 2005 and is currently the Executive Deputy Chairman of DIALOG.

He holds a first class Honours Degree in Chemical Engineering from the University of Malaya. He is a member of the Institution of Engineers, Malaysia and is a Professional Engineer registered with the Board of Engineers Malaysia. He is also a Fellow of the Institution of Chemical Engineers, United Kingdom.

He joined DIALOG in 1993 as General Manager and was later promoted as Director and Chief Executive Officer of Dialog Systems (Asia) Pte Ltd, overseeing the operations of the Group’s Business Development, Marketing, Technical Services and Petroleum Retail. He was later appointed as Deputy Group Managing Director and President & Chief Operating Officer of DIALOG prior to his current position. He is currently also an alternate board member of Johor Petroleum Development Corporation Berhad.

He has over 42 years of experience in the oil, gas and petrochemical industry encompassing plant operations, project engineering and management, marketing and business development. He was formerly with ICI for 9 years and PETRONAS for 5 years.

CHAN YEW KAIExecutive Deputy Chairman

Malaysian/Aged 66

TAN SRI DR NGAU BOON KEAT is the co-founder and major shareholder of DIALOG and has been with the Group since 1984. He was appointed to the DIALOG Board on 2 January 1990 and is currently the Executive Chairman of DIALOG and Chairman of the Remuneration Committee and ESOS Committee. He is the Chairman of Pengerang Independent Terminals Sdn. Bhd., the Founder and Trustee of MyKasih Foundation and Director of International Conference & Exhibition Professionals. He is a Board member of Johor Petroleum Development Corporation Berhad since 2012 and a Council member of the East Coast Economic Region Development Council since 2014.

He holds a Bachelor's Degree (Hons.) in Mechanical Engineering and an Honorary Doctorate in Engineering from the University of Canterbury, New Zealand. He is a member of the Institution of Engineers, Malaysia and the Institution of Engineers, Singapore. He is also a Registered Professional Engineer with the Board of Engineers Malaysia.

He began his career in 1972 as a Refinery Engineer with Mobil Singapore Pte Ltd. He worked at PETRONAS from 1975 to 1980 where he held various positions from Production Engineer to Engineering Manager. He has more than 48 years of working experience in the oil, gas and petrochemical industry.

Tan Sri Dr Ngau Boon Keat is deemed a major shareholder of DIALOG.

TAN SRI DR NGAU BOON KEATExecutive Chairman

Malaysian/Aged 72

Number of Meetings AttendedBoard 7/7Remuneration Committee 1/1

Number of Meetings AttendedBoard 7/7

LEFT TO RIGHT:

Front RowZainab Binti Mohd Salleh, Datuk Oh Chong Peng, Tan Sri Dr Ngau Boon Keat, Chan Yew Kai, Siti Khairon Binti Shariff

Back RowDato’ Ismail Bin Karim, Kamariyah Binti Hamdan, Juniwati Rahmat HussinMohamad Hafiz Bin Kassim

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DATUK OH CHONG PENG was appointed as an Independent Non-Executive Director of DIALOG on 9 January 2009. He is the Chairman of the Audit Committee, Risk Management Committee, Nomination Committee and a member of the Remuneration Committee. He is also the Senior Independent Non-Executive Director (email: [email protected]).

He is a qualified Chartered Accountant and is a Fellow of the Institute of Chartered Accountants in England and Wales. He is also a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants.

He was a senior partner of Coopers & Lybrand (now known as PricewaterhouseCoopers), Malaysia (1974-1997). He was a Committee Member of the Kuala Lumpur Stock Exchange (1990-1996) and also a past President (1994-1996), Council Member (1981-2002) of the MICPA and was also a member of the Malaysian Accounting Standards Board (2003-2009). He was a member (1996-2020) and the Chairman (2018-2020) of the Labuan Offshore Financial Services Authority.

His directorships in other public companies include WCE Holdings Berhad, Malayan Flour Mills Berhad, PUC Berhad and Saujana Resort (M) Berhad. He is also a Council Member of Universiti Tunku Abdul Rahman (“UTAR”) and a trustee of the UTAR Education Foundation.

BOARD OF DIRECTORS' PROFILE

DATUK OH CHONG PENGIndependent Non-Executive Director

Malaysian/Aged 76

KAMARIYAH BINTI HAMDAN was appointed as an Independent Non-Executive Director of DIALOG on 27 July 2010. She is a member of the Audit Committee, Risk Management Committee, Nomination Committee, Remuneration Committee and ESOS Committee.

She holds a Bachelor and a Master of Laws degree from the University of London, and a Barrister-at-Law degree from the Honourable Society of Lincoln’s Inn.

She joined PETRONAS in 1979 as one of its pioneer legal advisors and her last posting was as Legal Advisor and Company Secretary to PETRONAS Gas Sdn. Bhd. (now PETRONAS Gas Berhad) in 1988. She left PETRONAS to be a Partner of Mah-Kamariyah & Partners from 1989 to 2005 where she continued to be actively involved in the oil and gas business.

She has over 35 years of working experience in various aspects of legal matters in relation to oil and gas, general corporate advisory, corporate finance, banking, real and personal property transactions, joint ventures, privatisation, engineering, procurement and construction contracts, technology transfers etc.

KAMARIYAH BINTI HAMDANIndependent Non-Executive Director

Malaysian/Aged 69

Number of Meetings AttendedBoard 7/7Audit Committee 6/6Risk Management Committee 3/3Nomination Committee 2/2Remuneration Committee 1/1


SITI KHAIRON BINTI SHARIFF was appointed as an Independent Non-Executive Director of the DIALOG Board on 1 April 2013.

She is a member of the Audit Committee, Risk Management Committee, Nomination Committee, Remuneration Committee and ESOS Committee. She was previously on the DIALOG Board between 2005 and 2010 as the appointed representative of Employees Provident Fund Board (“EPF”), which is a substantial shareholder of DIALOG.

She holds a Bachelor of Economics (Hons.) Degree from University Malaya and Master of Arts (Econs) Degree from University of Philippines. She retired from EPF as the General Manager, Fund Investment Department after having served EPF for 12 years until 2008. She was a lecturer at University Putra Malaysia for 16 years prior to joining EPF. She is currently also a Trustee of MyKasih Foundation.

SITI KHAIRON BINTI SHARIFFIndependent Non-Executive Director

Malaysian/Aged 66


DATO’ ISMAIL BIN KARIMIndependent Non-Executive Director

Malaysian/Aged 65

DATO’ ISMAIL BIN KARIM was appointed as an Independent Non-Executive Director of the DIALOG Board on 24 November 2017. He is a member of the Audit Committee and Risk Management Committee.

He holds a Bachelor of Arts (History) with Honours and a Diploma in Education from Universiti Kebangsaan Malaysia.

Dato’ Ismail served the Johor Civil Service for over 35 years prior to his retirement as Johor State Secretary in 2016. Dato’ Ismail held various positions during his tenure in the Johor Civil Service. He started his career as an Assistant Land Revenue Collector at the Johor Bahru Land Office in 1982 and was promoted to several positions in the land offices in Johor until 1992. He went on to take up senior positions in the Segamat District Office, Johor Bahru City Council, Johor State Economic Planning Unit, Johor Bahru District Office, Johor State Secretary Office and Johor State Islamic Religious Department before taking on the role of Yang DiPertua (Head) of Kulai Municipal Council in 2006. Dato’ Ismail became the District Officer of Kota Tinggi in 2009 and was later promoted as Mayor of Johor Bahru in 2013 and Johor State Secretary in 2014.

Dato’ Ismail is a director of Paragon Globe Berhad and a Trustee of Tunku Laksamana Johor Cancer Foundation, Zarith Sofia Foundation State of Johor and Johor Darul Ta’zim Foundation. He is also President of the Johor State Football Association and Treasurer of Football Association of Malaysia.

Number of Meetings AttendedBoard 5/7Audit Committee 5/6Risk Management Committee 2/3

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JUNIWATI RAHMAT HUSSIN was appointed as an Independent Non-Executive Director of DIALOG on 19 August 2020. She is a member of the Audit Committee and Risk Management Committee.

She holds a Bachelor of Science (Hons) Degree in Chemistry from University of Kent, Canterbury, United Kingdom.

She retired from PETRONAS in 2016 after 35 years of service. She started her career in 1981 as a Chemist, PETRONAS Research, and served in the PETRONAS Group in several positions including the Vice President & Venture Director of Pengerang Integrated Complex, Vice President of Human Resource Management and Vice President of Education Division. Throughout her career, she has gained a wide range of hands-on experience in Laboratory Operations, Petroleum Refinery Operations, Project Management, Corporate Planning & Business Development, Human Resource and Marketing & Trading. She also held the position of CEO of Dewan Filharmonik PETRONAS and CEO of the Malaysian Philharmonic Orchestra.

She is currently also an Independent Non-Executive Director of Tenaga Nasional Berhad and a member of Advisory Council for Yayasan Peneraju Pendidikan Bumiputera.

JUNIWATI RAHMAT HUSSINIndependent Non-Executive Director

Malaysian/Aged 61

MOHAMAD HAFIZ BIN KASSIM was appointed as Non-Independent Non-Executive Director of the DIALOG Board on 14 November 2019, representing the Employees Provident Fund Board (“EPF”), which is a substantial shareholder of DIALOG.

He holds a B.Sc (Econs) Accounting and Finance from London School of Economics and Political Science. He is also a Fellow of the Chartered Certified Accountant and a CFA Charterholder.

He joined EPF in 2008 and is the Head of Real Estate Investment Department. The Real Estate Investment Department manages the EPFs domestic and global portfolios of the asset class. In addition, he is the Managing Director of Kwasa Land Sdn. Bhd., which is a wholly-owned subsidiary of EPF.

Prior to his current role, Mohamad Hafiz headed the Capital Market, Private Markets and Private Equity departments. He has more than 20 years' experience in investment analysis, private equity investing, accounting and auditing.

Prior to joining EPF, he worked at Daiwa Capital, PwC and TM Berhad. He is also a director of PLUS Malaysia Berhad and QSR Brands (M) Holdings Bhd and was previously alternate director to Tunku Alizakri Bin Raja Muhammad Alias on the DIALOG Board.

MOHAMAD HAFIZ BIN KASSIMNon-Independent Non-Executive Director

Malaysian/Aged 45


KEY SENIOR MANAGEMENT’S PROFILE

ZAINAB BINTI MOHD SALLEHGroup Chief Financial Officer and Joint Company Secretary

Malaysian/Aged 54

ZAINAB BINTI MOHD SALLEH is the Group Chief Financial Officer and Joint Company Secretary of DIALOG. She was appointed to the DIALOG Board on 15 May 2007. She is the Secretary of the Remuneration Committee.

She holds a Bachelor of Commerce in Accountancy from University of New South Wales, Australia and is a Chartered Accountant with the Malaysian Institute of Accountants.

She joined DIALOG in 1995 as Accountant and was later promoted to Group Chief Financial Officer and Joint Company Secretary. She has over 32 years of working experience in auditing and financial management. She was formerly with Price Waterhouse (now known as PricewaterhouseCoopers) and other companies responsible for financial and cost management accounting.

MUSTAFFA KAMAL BIN ABU BAKARChief Operating Officer

Malaysian/Aged 56

MUSTAFFA KAMAL BIN ABU BAKAR was appointed Chief Operating Officer of DIALOG on 10 October 2014. He joined the Group in 2001 as Director, Business Development (Plant Services Division) and was later the Chief Executive Officer of Dialog E & C Sdn. Bhd. and Dialog Plant Services Sdn. Bhd.. He was subsequently promoted to Group Managing Director for Malaysia Business Operations on 1 November 2009. He holds a Bachelor of Science Degree in Mechanical Engineering from the Nevada-Reno University, USA. He has more than 33 years of working experience in the oil, gas and petrochemical industry. He was formerly with PETRONAS Carigali Sdn. Bhd. for 5 years and with other oil and gas related companies in design consultancy, construction and fabrication, and maintenance and specialised services. He is also currently an alternate board member of International Conference & Exhibition Professionals and a Council Member of the Malaysian Gas Association.

Other than disclosed, none of the Directors and Key Senior Management have:

1 any family relationship with any director and/or major shareholder of DIALOG;

2. anyconflictofinterestwithDIALOG;3. anyconvictionforoffenceswithinthepast5yearsotherthantrafficoffences;and4. anypublicsanctionorpenaltyimposedbytherelevantregulatorybodiesduringthefinancialyear.


Number of Meetings AttendedNo disclosure for FY2020 as she was appointed in August 2020.


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MANAGEMENT’S PROFILE

CHEW ENG KAR is the Senior Managing Director, Group Corporate. He joined DIALOG in 1992 as Group Finance Manager and was promoted to General Manager of Group Finance before his appointment to the DIALOG Board in 1998. He has since served the DIALOG Board for 21 years until 2019. He continues to lead Group Corporate with his extensive experience in corporate and financial management. He is a Chartered Accountant with the Malaysian Institute of Accountants, and is professionally qualified with the Association of Chartered Certified Accountants, United Kingdom.

NGAU WU WEI was appointed as Director, Corporate Strategy in November 2018. Prior to joining DIALOG, Wu Wei was a Manager with KPMG Consulting/ BearingPoint Inc. based in New York where he worked as a management and technology consultant serving Financial Services clients. Since joining DIALOG in 2007, he has held various senior management positions covering corporate planning, group information technology, business development, and joint ventures management. Wu Wei holds a Bachelor of Commerce in Accounting & Finance from the University of Canterbury and a BSc in Information and Decision Systems from Carnegie Mellon UniversityPittsburgh, Pennsylvania.

EFFENDY CHENG BIN ABDULLAH joined DIALOG in 2018 as Director, Upstream Oil and Gas. He holds a first class Honours Degree in Geology from the University of Malaya. He is a registered professional geologist with the Board of Geologists Malaysia. Effendy has over 41 years of global oil and gas industry experience across a wide range of functions including exploration management, business development, operations management and strategy development. Prior to joining DIALOG, he was formerly with PETRONAS where his last held position was the Vice President & CEO of PETRONAS Exploration.

CHEW ENG KARSenior Managing Director, Group Corporate

NGAU WU WEIDirector, Corporate Strategy

Malaysian, 61 Malaysian, 43

EFFENDY CHENG BIN ABDULLAHDirector, Upstream Oil and Gas

Malaysian, 68

CHONG CHONG WOOIManaging Director, Engineering,Construction & MaintenanceManaging Director, Major Projects

Malaysian, 62

CHONG CHONG WOOI is the Managing Director, Engineering, Construction & Maintenance (“ECM”) where he leads and manages three business units. Additionally, he is also the Managing Director of Major Projects. He holds a Bachelor of Science Degree in Civil Engineering from the University of Aston, Birmingham, United Kingdom. He is also responsible for the development of the Pengerang project which involves land reclamation, dredging, and the construction of storage tanks and jetties. He has over 37 years of working experience in engineering, construction and project management in the oil, gas and petrochemical industry.

MALAYSIA

JOHN HENRY THORNTON joined DIALOG in 2015 as Director, Downstream and was subsequently appointed as Director, Operations Excellence, also heading the Risk Management and Internal Audit Department. Being appointed Managing Director, Business Excellence in July 2020, he continues to drive improvement and transformation programmes to drive sustainable growth and oversees Operations Excellence, Group Risk Management & Internal Audit, Group HSE, and Group QA/QC. John holds a BSc in Chemical Engineering from the University of Birmingham, UK. He is a Fellow of the Institution of Chemical Engineers, UK and has 40 years of working experience in the oil and gas industry.

BRYAN TAN was appointed Executive Director of Group Business Development and Specialist Products & Services in June 2020. He leads and oversees the business development activities of the various business units for DIALOG. He joined DIALOG in 2007 as an Electrical and Instrumentation Manager. Previous appointments include Acting Head of Group Engineering and Construction ("E&C") Services, Deputy Director – Major Projects, Deputy Design Engineering Manager and Deputy Head of Engineering and Construction. He holds a Bachelor’s Degree in Electrical, Engineering and Computing from Monash University, Australia. He has 23 years of working experience in the oil, gas and petrochemical industry.

AHMAD BIN ABDUL TALIP was appointed Senior General Manager of Terminals Business in July 2018. He joined Dialog Terminals Sdn. Bhd. in April 2010. He holds a Bachelor of Science (Hons) in Business Management from the University of Hartford, Connecticut, USA and a Diploma in Logistics Operations from the University of East London (Malaysia Campus). He has 28 years of working experience in the oil, gas and petrochemical industry.

PAU KIEW HUAI joined DIALOG in 2019 as the Executive Director for both Corporate Planning and Engineering and Construction Services. He holds a BSc (Hons) in Mechanical Engineering from the University of Nottingham, UK and is a Professional Engineer registered with the Board of Engineers. He has more than 30 years of working experience in the oil and gas sector, primarily with PETRONAS where he took on technical and senior management roles including provision of technical services and solutions in the Upstream facilities and LNG plants. Prior to joining DIALOG, he was the CEO of Malaysia LNG.

JOHN HENRY THORNTONManaging Director, Business Excellence

BRYAN TANExecutive Director, Group Business DevelopmentExecutive Director, Specialist Products & Services

AHMAD BIN ABDUL TALIP Senior General Manager, Terminals Business

PAU KIEW HUAIExecutive Director, Corporate PlanningExecutive Director, Engineering and Construction Services

British, 62

Malaysian, 44

Malaysian, 52

Malaysian, 58

MALAYSIA

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MALAYSIA

SHAHIMI BIN ZAKARIADirector, Plant Maintenance and Fabrication

SHAHRUDDIN BIN AHMADHead, Government Relations


SHAHIMI BIN ZAKARIA was appointed Director of Plant Maintenance and Fabrication in April 2015. He joined DIALOG in 2008 as a Maintenance Manager for a refinery in Melaka. He holds an Executive Masters in Engineering Business Management from Asia e University and a Diploma in Mechanical Engineering from Universiti Teknologi Malaysia. He has over 26 years’ working experience in the oil, gas, petrochemical, refinery, combined cycle gas turbine power plant and offshore industry, working in various functions including fabrication, maintenance, commissioning and operations, both internationally and locally. Prior to joining DIALOG, he was with ESB BV and Optimal, Kertih.

SHAHRUDDIN BIN AHMAD was appointed Head of Government Relations in July 2016. He joined DIALOG in 2012. He holds a Bachelor’s Degree in Business Administration from the University of Arkansas and Masters of Business Administration from Mississippi State University, USA. He has more than 32 years of working experience, including more than 3 years with a leading local banking institution and about 20 years with Shell Malaysia Trading Sdn. Bhd. where he held various senior positions. Prior to joining DIALOG, he was the General Manager of the Tank Terminal Division at MISC Berhad for 2 years.

TAN LIP LEONGHead, Engineering and Construction Projects

HENG SOON LIPHead, Plant Services


TAN LIP LEONG was appointed Head of Engineering and Construction Projects in December 2015. He joined DIALOG in 2007. He holds a Bachelor of Engineering Degree in Mechanical Engineering from University of Malaya and is a Professional Engineer registered with the Board of Engineers Malaysia. Prior to joining DIALOG, he was a partner in an engineering consultant firm heading the Oil and Gas Department. He has more than 33 years of working experience in engineering and design for oil and gas, and power generation facilities. He has actively participated in the engineering and construction of oil refineries, gas processing plants, ethylene/polyethylene plants, butanol plants and LNG plant facilities.

HENG SOON LIP was appointed Head of Plant Services in July 2015. He joined DIALOG in 2002. He holds a Bachelor of Engineering Degree in Civil and Structural Engineering from National University of Singapore and is a Professional Engineer registered with the Board of Engineers Malaysia. He leads and oversees the business development and operations of Plant Maintenance & Catalyst Handling Services. He has over 32 years of working experience in engineering design, project management and specialist services in the oil, gas and petrochemical industry. He was formerly with the Sembawang Group and Brown & Root for 6 years and 3 years respectively in Singapore.

MALAYSIA

JESSIE KU is the Executive Director of Group Human Resources. She joined DIALOG in 2007. She holds a Diploma in Personnel Management and is an ICF-ACSTH Certified Associate Coach. She leads and manages HR strategic plans, overseeing all HR functions which includes talent pipelining, leadership development, and learning programmes that promote staff productivity, organisational efficiency, and cost effectiveness. She has over 37 years of working experience in several multinational companies within the manufacturing, consultancy and professional services sector. Before DIALOG, she spent close to 10 years with Halliburton where she held the role of Regional Senior HR Manager for Asia Pacific and Central Asia respectively.

SUE NGAU was appointed as Head, Corporate Services in March 2020. She joined DIALOG in October 2007. Sue holds a Bachelor of Commerce from the University of Melbourne and a Masters of Information Management and Systems from Monash University in Australia. She is an Associate Member of CPA Australia and a member of the Malaysian Institute of Accountants, with more than 18 years working experience in the areas of corporate financial management.Prior to joining DIALOG, Sue was working in KPMG Malaysia, in the areas of audit and corporate finance.

JESSIE KUExecutive Director, Group Human Resources

SUE NGAUHead, Corporate Services


JENNY CHOK is the Head of Group Legal. She joined DIALOG in 2012. She obtained her Bachelor of Laws Degree from the University of London, UK and completed the English Bar examinations. She commenced her career in the legal education line as an academician and managed a counselling office for legal education. She then practised as an Advocate and Solicitor, focusing on corporate and commercial law work. Before DIALOG, she was Head of Group Legal for an oil and gas service provider with other diversified activities, listed on the Main Market of Bursa Malaysia. She has over 27 years of working experience.

JEFFREY GERARD PERERA joined DIALOG in 2008 as Managing Director of the DIALOG Innovation Ventures Group of Companies. In July 2020, he was appointed as Deputy Chairman of DIALOG Corporate Social Responsibility (MyKasih). He assists the Chairman in setting the direction for CSR programs and oversees the creation of DIALOG’s social responsibility objectives through the MyKasih Foundation. Jeffrey holds a Diploma in Banking Studies from the Institute of Bankers, London. His experience includes 29 years with HSBC Malaysia where his last posting was Head of Card Business, 4 years with Visa International as Country Manager for Malaysia, Brunei and Guam and running his own consulting practice.

JENNY CHOKHead, Group Legal

JEFFREY GERARD PERERADeputy Chairman, DIALOG Corporate Social Responsibility (MyKasih)


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HO KAM YONG, EVELYN Managing Director, DIALOG Corporate Social Responsibility (MyKasih)

ABDUL RASHID BIN MOHD YUSOFF Senior Finance Manager, Upstream


HO KAM YONG, EVELYN is the Managing Director of DIALOG Corporate Social Responsibility (MyKasih). She leads a team that runs and implements DIALOG’s social responsibility objectives through the MyKasih Foundation. Additionally, she works with both local and foreign NGOs to drive welfare distribution programs in their respective communities. She joined DIALOG in 2000 as Chief Planning Officer. Her previous appointments include Head of Retail Petroleum, Director of Corporate Development, Chief Executive Officer of Digital Ventures, Head of Digital Technology and Acting Head of Group Corporate Communications. She holds a Master of Business Administration and a Bachelor Degree in Corporate Finance from the University of North Texas, USA.

ABDUL RASHID BIN MOHD YUSOFF is the Senior Finance Manager, who oversees the accounting and finance matters of the Upstream Division. He holds a Bachelor of Arts Degree in Accountancy from the University of South Australia, Adelaide. He has over 30 years of working experience in the oil and gas industry. Prior to joining DIALOG in 2012, he was formerly with Sun Malaysia Petroleum Company, Sarawak Shell Berhad, Shell Malaysia Trading Sdn. Bhd., Shell MDS Malaysia Sdn. Bhd., Petrofield (M) Sdn. Bhd. and MMC Petroleum & Resources Sdn. Bhd..

CAPT. MOHAMMAD MOHSEIN BIN ZAINOORDIN joined DIALOG in 2019 as the Head of our Pengerang Marine Operations, where his primary roles are to manage and coordinate movement of all vessels within the Pengerang Deepwater Terminal Marine Area to ensure safe and efficient operations. He holds a Class 1 Certificate of Competency (Master of 3000GT or more Unlimited Trade Voyages) from the Malaysia Maritime Academy. He has close to 23 years of experience in sailing, port operations, transfer operations and maritime management. Prior to joining DIALOG, he was with Seven Seas Oil Ship Management as Port Captain.

SOO SIEW YEE joined DIALOG in 2019 as Director, Petrochemicals Business. She holds a BSc (Hons), 1st Class in Industrial Chemistry from Universiti Teknologi Malaysia and also holds a MSc in Industrial & System Engineering (Major in Project Management) from the National University of Singapore. Siew Yee has more than 19 years of experience, working in the operational field of Downstream Petrochemicals in both multi-national and national companies. Her responsibilities included operational excellence, project implementation, business development and organisational improvements in the energy industry. Prior to joining DIALOG, she was the Head of Performance Planning & Management under PETRONAS Refinery & Petrochemical Corporation.

CAPT. MOHAMMAD MOHSEIN BIN ZAINOORDINHead, Pengerang Marine Operations

SOO SIEW YEEDirector, Petrochemicals Business


MALAYSIA

REDZA GOH joined DIALOG in 2019 as Executive Director, Group IT. He holds a BSc in Computation (Hons) from the University of Manchester Institute of Science & Technology (UMIST), UK. Redza has over 36 years of experience in information technology and digital transformation of businesses and organisations. Prior to DIALOG, Redza spent over 4 years with PETRONAS as the Group Chief Information Officer and the Chief Executive Officer and Director of PETRONAS ICT Sdn. Bhd.. Before that, he was attached to Accenture for 26 years where his last role was Country Managing Director for Malaysia.

VIJAYASOORYA joined DIALOG in October 2019 as the Head of Group Internal Audit and Risk Management. He is a CPA (Australia) and holds a Bachelor of Commerce (Accounting & Finance) degree from the University of Southern Queensland, Australia. He has over 20 years of working experience, predominantly in the oil and gas sector, where he held senior positions in the field of audit and risk management. He was formerly with British Petroleum, PETRONAS, Baker Hughes and Deloitte prior to joining DIALOG.

REDZA GOHExecutive Director, Group IT

VIJAYASOORYA A/L K.KRISHNA MURTHYHead, Group Risk Management and Internal Audit

Malaysian, 60

Malaysian, 44

MALAYSIA INTERNATIONAL

TEO SEOW LING is the Chief Executive Officer of the Terminals Business. He joined DIALOG in 2017. He holds a Bachelor of Engineering Degree in Mechanical Engineering and a Master of Science Degree in Industrial Engineering from the National University of Singapore. He has more than 22 years of extensive experience in both operations and general management of bulk liquid terminals of which he spent close to 17 years with Vopak where he held a variety of operational and senior management positions. Prior to joining DIALOG, he was the Vice-President of Operations at Singapore LNG Corporation Pte Ltd for 2 years.

TAN LEK LEK was appointed Executive Director - Technical in February 2016. He joined DIALOG in 1995. He holds a Bachelor’s Degree with Honours in Mechanical Engineering from the University of Malaya. He is a member of the Institution of Engineers, Malaysia and the Institution of Engineers, Singapore and is a Registered Professional Engineer in Malaysia and Singapore. He has more than 43 years of multi-disciplinary working experience in construction, commissioning and maintenance of onshore and offshore oil and gas facilities, petrochemical plants, water and waste water treatment plants, both locally and overseas.

TEO SEOW LING Chief Executive Officer, Terminals Business

TAN LEK LEKExecutive Director, Technical

Singaporean, 50

Malaysian, 68


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INTERNATIONAL

KWEK HONG HONG joined DIALOG in 2020 as the General Manager, Engineering of DIALOG OTEC. She holds a Bachelor of Engineering (Chemical) Degree from the National University of Singapore and a MBA from the Oregon State University, USA. She brings with her close to 30 years of relevant work experience in the areas of strategic management, revenue and profit growth as well as project management. Prior to joining DIALOG, she was General Manager of the Engineering Division of Chiyoda Singapore (Pte) Limited. During her tenure with Chiyoda, she also served as Advisor on various projects to ensure they are delivered safely, with quality and in a timely manner.

KWEK HONG HONG General Manager, OTEC - Engineering

Singaporean, 52

YOSHIYUKI HIRAOKA is the Managing Director of DIALOG OTEC since April 2006 through the acquisition of OTEC Holdings Pte Ltd. He holds a Bachelor’s Degree in Chemical Engineering from Kogakuin University, Tokyo, Japan. He has over 50 years of working experience in engineering design of petrochemical storage facilities which include LPG, VCM and Butadiene distribution facilities, including project management and shop fabrication of vessels and tanks in the oil, gas and petrochemical industry.

YOSHIYUKI HIRAOKAManaging Director, DIALOG OTEC

Japanese, 75

STEVEN TEOW YEE was appointed Country Manager for Singapore in October 2014. He is also responsible for specialty products and services covering other international locations since 2015. He joined DIALOG in 2004 where his prior appointments include Marketing Manager for Singapore and Country Manager for Thailand. He holds an Honours Degree in Chemical Engineering from the National University of Singapore and a Diploma in Marketing from the Chartered Institute of Marketing, United Kingdom. He has 22 years of working experience in the sales and marketing of specialist products and services.

TAN NGEE MENG was appointed Country Manager for Saudi Arabia in June 2013. He first joined DIALOG in 2007 as the Sales and Business Development Manager for Saudi Arabia. He currently oversees the business operations in that region which consist of specialised industrial services, minor projects, equipment support services and trading services as well as logistics services of a supply base located in the Jubail Commercial Port that serves the offshore oil and gas industry in the Arabian Gulf Region. He has 27 years of working experience in the oil, gas and petrochemical industry in Saudi Arabia.

STEVEN TEOW YEECountry Manager, Singapore

TAN NGEE MENG Country Manager, Saudi Arabia

Singaporean, 46 Malaysian, 49

KEISAKU TAKAHASHI General Manager, OTEC – Business Development

RICHARD ELLIS Managing Director, DIALOG Fitzroy

Japanese, 40 New Zealander, 47

KEISAKU TAKAHASHI joined DIALOG in 2020 as the General Manager, Business Development of DIALOG OTEC. He holds a Bachelor of Arts (International Studies) from the Bunkyo University, Japan. He spent most of his career with Chiyoda Corporation where he held numerous positions in the areas of business development, marketing, tendering and corporate planning. Prior to joining DIALOG, he was General Manager of Business Development for Chiyoda Singapore (Pte) Limited.

RICHARD ELLIS is the Managing Director of DIALOG Fitzroy, in New Zealand since April 2011 through the acquisition of DIALOG Fitzroy Limited. He holds a Bachelor of Technology Degree in Engineering and Automation. He has over 25 years of working experience, 11 years of which were in the automated technology industry assisting the company to establish itself as an international leader in the field. He has extensive experience in project management, contract negotiation and global markets.

INTERNATIONAL

VIJAYASEKHARAN N is the Regional Manager for MENA, Central Asia and India, where he oversees the business operations in the region which consist of sales and marketing, trading, distribution and storage services. He holds a Diploma in Mechanical Engineering. Prior to joining DIALOG in 2012, he held various roles within the APL Group in UAE, Oman and India respectively. He has over 31 years of working experience in the fields of engineering, fabrication, construction, supply chain, and marketing of specialist products for the oil and gas sector.

ANDREW COPLAND is the General Manager of DIALOG Services in Australia. He joined DIALOG in 1995. He holds extensive inspection qualifications, a Certificate of Quality Assurance from New Zealand and is a Lead Quality Systems Auditor. He has over 34 years of worldwide working experience in numerous roles in the oil, gas and petrochemical industry. Originally joining DIALOG in a QA/QC management role, his various assignments within DIALOG have also included Procurement Manager, Proposal Manager and Acting Head of Contracts.

VIJAYASEKHARAN N Regional Manager,MENA, Central Asia and India

ANDREW COPLAND General Manager, DIALOG Services, Australia

Indian, 49 New Zealander, 61


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INTERNATIONAL

TIRIN TONGPATANAKUL was appointed Country Manager for Thailand in July 2015. He first joined DIALOG in 2009 as a Sales Engineer. He holds a Bachelor of Engineering (Honours) degree in Mechanical Engineering from University College London, University of London. Prior to joining DIALOG, he worked as a consultant for various firms in Thailand covering the energy, retail, utilities, cement, banking, and electronics industries. He has more than 20 years of experience in the marketing & sales of specialist products & services in Thailand.

MIKE NEWMAN is the Director of Petroleum Engineering in Upstream Oil and Gas. He joined DIALOG in March 2013. He holds a Bachelor of Science Degree in Chemical Engineering & Fuel Technology from Sheffield University, UK. He has more than 47 years of experience in the oil and gas industry and has acquired extensive reservoir engineering, field development and project management skills during his lengthy career with Shell International where he held a variety of technical and senior management positions. His global experience spans Europe, Africa, South America, Middle East and South East Asia, and includes some 8 years working for Shell in East Malaysia.

TIRIN TONGPATANAKUL Country Manager, Thailand

MIKE NEWMANDirector, Petroleum Engineering, Upstream Oil and Gas

Thai, 43 British, 72

GEORGE BELLDirector, Engineering, Upstream Oil and Gas

British, 76

GEORGE BELL is the Director of Engineering in Upstream Oil and Gas. He joined DIALOG in November 2012. He holds a Bachelor of Science Degree in Mechanical Engineering from Heriot-Watt University, Edinburgh, UK. He has more than 47 years of experience, of which he was with Shell International for 25 years where he worked on major projects worldwide, holding a variety of technical, project and senior management positions.

CORPORATE MILESTONES

1984

Established and commenced operations in Taman Mayang, Petaling Jaya, Malaysia.

1988

Secured 1st major EPCC contract worth SGD32 million to build a rubber dipping facility in Sri Lanka.

1996

Listed on KLSE 2nd Board with market capitalisation of RM55 million.

1997

Commenced to build, own and operate a RM600 million centralised tankage facility in Kertih, Terengganu, Malaysia.

2000

Transferred to KLSE Main Board.

2006

• Established presence in Australia.

• Established presence in the Middle East.

2007

Commenced to build, own and operate a RM700 million tank terminals facility in Tanjung Langsat, Johor, Malaysia.

2009

Began development of Pengerang Deepwater Terminals.

2011

• Established presence in New Zealand.

• Partnered ROC Oil Malaysia and Petronas Carigali to develop Balai Marginal Fields (Sarawak).

2012

Entered into a joint venture with Halliburton International Inc. to enhance Bayan Recoverable Reserves (Sarawak).

2013

Included in the MSCI Global Standard Indices.

2014

Headquarters relocated to our very own building, DIALOG Tower in Mutiara Damansara, Petaling Jaya, Malaysia.

2014

Official opening of Pengerang Deepwater Terminals.

2015

Arrival of the first Very Large Crude Carrier (VLCC) at Pengerang Deepwater Terminals.

2018

• Included into the FBM KLCI.• Acquired the remaining interests

of DIALOG Terminals Langsat.

2019

Increased stake in Halliburton Bayan Petroleum Sdn Bhd to 95%.

TodayListed on Main Market of Bursa Malaysia with a market capitalisation of RM22 billion as at September 2020 and staff strength of 2,900 in 10 countries.


DIALOG’s involvement in upstream is via investment and the provision of services comprising the following:

i) 20% participating interest in a Production Sharing Contract (“PSC”) for three fields, D35, D21 and J4, located offshore Sarawak, Malaysia up to 2034; and

ii) The provision of services as independent technical contractor to PETRONAS Carigali Sdn. Bhd. via an Oilfield Services Contract (“OSC”) up to 2036, to enhance recoverable reserves from the Bayan Field, located offshore Sarawak, Malaysia – through its joint venture, Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”).

In FY2020, DIALOG acquired an additional 45% equity stake in HBP, and HBP is now a 95% owned indirect subsidiary of DIALOG.

This is in line with DIALOG’s strategy since 2011, to develop its upstream capabilities through the rejuvenation and redevelopment of producing and mature oilfields only. Our upstream activities provide long term recurring income, and added opportunities for DIALOG to participate in other parts of the value chain in the field redevelopment cycle, particularly in the provision of engineering and specialist technical services.

DIALOG designs, builds, owns and operates both independent storage and industrial terminals – storing and handling a variety of crude oil, petroleum, Liquefied Natural Gas (“LNG”) and petrochemical products. DIALOG’s terminal assets comprise the following:• 2000 – Kertih Terminals Sdn. Bhd.• 2009 – Dialog Terminals Langsat (1) Sdn. Bhd. and

Dialog Terminals Langsat (2) Sdn. Bhd.• 2014 – Pengerang Independent Terminals Sdn. Bhd.• 2017 – Pengerang LNG (Two) Sdn. Bhd.• 2018 – Pengerang Terminals (Two) Sdn. Bhd.• 2019 – Dialog Terminals Langsat (3) Sdn. Bhd.• 2021 – Dialog Terminals Pengerang (5) Sdn. Bhd.

As a trusted terminals service provider for the last 20 years, our clients and partners comprise multinational oil majors, national oil companies and international market players.

In addition to petroleum storage terminals, DIALOG also owns a supply base in Jubail, Saudi Arabia, which serves as a one-stop logistics hub and resource centre for oilfield services, equipment and supplies.

Overall, our continued investment in our Midstream operating assets is in line with the Group’s long-term strategy to increase earnings stability and grow recurring income for the Group.

The foundation of DIALOG’s business is based upon its extensive experience and solid reputation as a provider of a wide range of integrated technical services across the oil, gas and petrochemical value chain, serving customers locally and the world over. These integrated technical services comprise:• Engineering, Procurement, Construction & Commissioning

for oil, gas and petrochemical projects• Plant Maintenance & Catalyst Handling Services to

refineries and plant operators around the world• Specialist Products & Services in collaboration with

reputable technology partners• Fabrication of machinery and process equipment for plants

and upstream production facilities• Digital Technology & Solutions using our proprietary

technology to modernise processes and improve efficiency

Our integrated technical services provide the Group with the ability to offer services and solutions across the upstream, midstream and downstream sectors of the oil, gas and petrochemical industry.

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DIALOG’s diversified business model is well structured to manage and sustain itself through oil price volatility and currency movements.

UPSTREAM

UPSTREAM ASSETS & SERVICES

WHAT WE DO

MIDSTREAM ASSETS & SERVICES INTEGRATED TECHNICAL SERVICES

MIDSTREAM DOWNSTREAM

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OUTPUTSENHANCING SHAREHOLDER VALUE

MARKET LEADERSHIP

DIVERSE & MULTI-SKILLED WORKFORCE

STRONG CONNECTED COMMUNITIES

GLOBAL PRESENCE & NETWORK

ENVIRONMENTAL PROTECTION

RETURN ON EQUITYFY202015.9%

NET PROFIT FY2020RM648 mil

TOTAL EQUITY FY2020RM4.2 bil

TOTAL DIVIDEND FY2020RM175 mil

¶Leading integrated technical service provider to the oil, gas & petrochemical industry

¶Able to provide services across the oil & gas value chain¶Competitive advantage

¶Talent Development across all levels of the organisation¶Talent & gender diversity in the workforce¶ Talent retention

¶Long established relationships with stakeholders¶Economic development in our locations of operations¶Positive social impact in the communities where we operate

¶International network of customers and partners¶Cross-functional and geographical workforce mobility¶ Geographical diversification for the Group

¶ Detailed Environmental Impact Assessments¶ Environmental Management Plans & Environment Monitoring

Management Plans¶ SIRIM QAS/IQNET ISO14001 Certifications

DIALOG Financial Statements 2020, Management Discussion and Analysis: pages 42 to 62 Economic Performance, Sustainability Report: pages 68 to 69

What We Do: pages 36 to 37

Our People, Sustainability Report: pages 79 to 82 Learning & Development, Sustainability Report: pages 83 to 85

Management Discussion and Analysis: pages 42 to 62, Strategic Alliances: page 62 Corporate Social Responsibility, Sustainability Report: pages 86 to 92

Global Presence: page 40, Group Corporate Directory: pages 121 to 122

Health, Safety & Environment, Sustainability Report: pages 70 to 78

www.dialogasia.com/worldwide-locations

FINANCIAL CAPITAL

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INTELLECTUAL CAPITAL

SOCIAL CAPITAL

MANUFACTURED CAPITAL

NATURAL CAPITAL AND ENVIRONMENTAL MANAGEMENT

HUMAN CAPITAL

TOTALEQUITYFY2019RM3.9 bil

TOTALBORROWINGSFY2019RM1.7 bil

CASH & CASH EQUIVALENTSFY2019RM884 mil

TOTALASSETSFY2019RM6.7 bil

¶ >30 years experience servicing the oil, gas & petrochemical industry¶ Established delivery and execution track record¶ Proprietary technology solutions

¶ Active engagement with all stakeholders - customers, suppliers, partners, bankers, regulators and government authorities

¶ Corporate Social Responsibility initiatives¶ Emphasis on local hiring

¶ 11 offices across 10 countries¶ 27 worksites (including fabrication yards) in 7 countries¶ 5 Terminals with total capacity of 4.6 million m3 in Malaysia¶ Supply Base in Saudi Arabia

¶ Green practices in water and energy use¶ ~1,200 acres of land in Pengerang Deepwater Terminals

¶ Workforce of 2,900 employees across 10 countries¶ Investing in active recruitment, development and retention

of talentE

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INPUTS

OUR BUSINESS MODEL FOR VALUE CREATION

OIL, GAS & PETROCHEMICAL INDUSTRY

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MANAGEMENT DISCUSSION AND ANALYSIS42 Statement from The Group’s

Chief Operating Officer46 Financial Performance Review48 Key Performance Indicators 49 5-Year Financial Summary50 FY2020 Review of Operations56 Awards and Achievements58 Key Risks and Opportunities62 Strategic Alliances

Product Tanks, Service Water Tanks and Loading Pump Station of Phase 3, Pengerang Deepwater Terminals

ESTABLISHED IN 1984, DIALOG IS A LEADING INTEGRATED TECHNICAL SERVICE PROVIDER TO THE UPSTREAM, MIDSTREAM AND DOWNSTREAM SECTORS OF THE OIL, GAS AND PETROCHEMICAL INDUSTRY. OVER THE YEARS, DIALOG HAS GROWN FROM STRENGTH TO STRENGTH IN THE INDUSTRY, BOTH ORGANICALLY AND THROUGH STRATEGIC ALLIANCES WITH INTERNATIONALLY RENOWNED TECHNOLOGY PARTNERS.

Headquartered in Kuala Lumpur, DIALOG is truly a global player given the Group’s strong and growing presence across ten countries with a staff strength of 2,900. DIALOG has offices and facilities in Malaysia, Singapore, Thailand, Indonesia, China, Australia, New Zealand, Philippines, Saudi Arabia and United Arab Emirates. Such strategic locations bode well for DIALOG as the Group is able to operate from a position of strength in tapping synergistic benefits in readily serving a diverse range of customers that include multinational oil majors, national oil companies as well as multinational engineering and service providers located throughout the world.

DIALOG is listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) and has a market capitalisation of about RM22 billion as at September 2020. DIALOG was included into the FTSE Bursa Malaysia KLCI on 18 June 2018.

Throughout the industry, the Group is highly regarded and respected as a trusted and dependable provider of comprehensive services that encompass:

GLOBAL PRESENCE

HEAD OFFICE OFFICES CLIENT NETWORK

MALAYSIAPHILIPPINES

THAILAND

UAE

SAUDIARABIA

SINGAPORE

AUSTRALIA

INDONESIA

NEW ZEALAND

CHINA

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MANAGEMENT DISCUSSION AND ANALYSISKEY MESSAGESOVERVIEW

40

Specialist Products &

Services

Upstream Assets

& Services

Plant Maintenance

& Catalyst Handling Services

Midstream Assets &

Services – Tank Terminals & Supply Base

Digital Technology & Solutions

Fabrication

Engineering, Procurement,

Construction & Commissioning

Group Corporate Directory: pages 121 to 122

www.dialogasia.com/worldwide-locations www.

MANAGEMENT DISCUSSION AND ANALYSIS

STATEMENT FROM THE GROUP'S CHIEF OPERATING OFFICER

MUSTAFFA KAMAL BIN ABU BAKARChief Operating Officer

Unfortunately, we regret to report that during the financial year, a contractor fatality was recorded at DIALOG Terminals Langsat (1) Sdn. Bhd. during renovation works at the office building. A thorough investigation of the incident was conducted, and measures to further strengthen and enhance our Health, Safety & Environment (“HSE”) policies and procedures have been implemented. We will continue to reinforce our commitment to safety, whether it involves our employees or contractors, and be persistent in instilling a Safety First culture in every aspect of our operations. HSE is everyone’s responsibility and must be the utmost priority in our daily tasks. Moving forward, our focus will be to increase the adoption and use of technology to manage our HSE risks.

On the midstream front, our focus during the year was on the phased capacity expansions in our terminals business. We successfully completed and fully operationalised the expansion of an additional 430,000 m3 of storage capacity at Pengerang Independent Terminals Sdn. Bhd. (“PITSB”), and 120,000 m3 of storage capacity at DIALOG Terminals Langsat (3) Sdn. Bhd. (“DTL3”). These capacity additions proved to be timely and we were able to capture the increased demand for storage during the year. The addition of another 85,000 m3 to DTL3 is now in progress and is scheduled for completion by end 2021.

We successfully completed and fully operationalised the expansion

of an additional

430,000 m3 of storage capacity at

Pengerang Independent Terminals Sdn. Bhd. and

120,000 m3 of storage capacity at

DIALOG Terminals Langsat (3) Sdn. Bhd.

Despite the economic downturn owing to the

COVID-19 pandemic, DIALOG’s business

operations remained resilient in FY2020.

The Group witnessed several significant

milestones, such as timely capacity expansions in our

terminals business, successful delivery of numerous turnaround

and plant rejuvenation projects, and the

further elevation of our upstream capabilities through a successful acquisition exercise.


CORPORATE GOVERNANCE ADDITIONAL INFORMATIONEVENT & HIGHLIGHTSSUSTAINABILITY REPORTMANAGEMENT DISCUSSION AND ANALYSISKEY MESSAGESOVERVIEWD

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F I H S NM D R T S TECH

Deck extension ready for installation

During the year, we also completed the reclamation of 300 acres of land in PDT, and continued to make good progress in the development of common tankage facilities, including shared infrastructure and deepwater marine facilities for PDT Phase 3 (“PDT3”). We remain on track to complete and commission the storage tanks with a capacity of 430,000 m3 for PDT’s Phase 3A, in line with the Long-Term Storage Agreement (“LTSA”) signed with BP Singapore Pte. Limited (“BPS”), by mid-2021.

FY2020 was also by far, one of the busiest years for our Plant Maintenance Division, with the completion of a record number of plant turnaround and rejuvenation projects. This was in line with the award of the 5-year Groupwide Master Service Agreement (with the option to extend) by PETRONAS for Integrated Turnaround Main Mechanical and Maintenance Mechanical Static last year. Additionally, the division clocked a total of 2 million man-hours in relation to plant turnaround works alone. These projects were completed successfully, meeting all the crucial key performance indices, and would not have been possible without the great teamwork and dedication of all the project teams, working together efficiently across all levels.

On track to complete and commission storage

tanks with a capacity of

430,000 m3

for PDT’s Phase 3A

MANAGEMENT DISCUSSION AND ANALYSIS

Phase 3A Pengerang Deepwater Terminals

In the Upstream sector, we assumed control of Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”) upon the successful acquisition of another 45% equity stake from Halliburton International, Inc. The acquisition represents the significant progress we have made in the building of our Upstream capabilities over the last 9 years. Moving forward, we will continue to pursue our Production Enhancement and Redevelopment strategies in both the Bayan and D35/J4/D21 Fields, whilst actively collaborating with our respective partners to optimise costs and manage cashflow diligently in the current economic climate.

We continue to invest in technology and develop new solutions to manage our operations and differentiate ourselves from our competitors, with key outcomes targeted at safety, efficiency and reliability. Combined with our culture of continuous learning and improvement, we aim to build on our strengths, improve on our weaknesses, and mitigate our risks so that we may continue to exceed our clients’ and stakeholders’ expectations.

Assumed control of Halliburton Bayan

Petroleum Sdn. Bhd. upon the successful acquisition

of another 45% equity stake from Halliburton

International, Inc


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TOTAL ASSETS

The Group’s total assets stood at RM7.19 billion as at 30 June 2020, representing an increase of RM480.3 million (7.2%) from RM6.71 billion a year ago.

Investment in Joint Ventures and Associates

The Group’s investments in joint ventures and associates decreased by RM854.1 million or 40.0% to RM1.28 billion as at 30 June 2020, from RM2.14 billion in the previous financial year.

The decrease in the investments were mainly attributable to the redemption of redeemable preference shares amounting to RM383.8 million in Pengerang Terminals (Two) Sdn. Bhd., and partial repayment and reclassification of shareholders’ loan amounting to RM503.3 million from Pengerang LNG (Two) Sdn. Bhd. to current assets.

During the financial year, the Group's acquisition of an additional 45% equity interest in HBP resulted in a reduction in investments in joint ventures by RM115.3 million as HBP became a 95% owned subsidiary of the Group.

The decrease was partially offset by the Group’s additional investment in PITSB of RM52.5 million, for its 430,000 m3 Phase 1E expansion.

Property, Plant and Equipment

The Group’s property, plant and equipment increased by RM722.0 million or 55.4% from RM1.30 billion in the previous financial year to RM2.03 billion as at 30 June 2020.

FINANCIAL PERFORMANCE REVIEW

The Group delivered another commendable financial performance for the financial year ended 30 June 2020. While the RM2.30 billion in revenue was lower by 3.5%, the Group’s profit after tax rose by 17.3% to RM648.1 million from RM552.3 million a year ago.

The better financial performance achieved in the current financial year was mainly attributable to Malaysia operations which saw higher contributions from the Group’s terminals business, in particular DIALOG Terminals Langsat ("DTL") and Pengerang Independent Terminals (“PITSB”). During the current financial year, DIALOG Terminals Langsat 3 commenced operations for its 120,000 m3 storage facility and PITSB Phase 1E also commenced operations for its 430,000 m3 storage facility expansion. With these, the storage capacities at DTL and PITSB total 770,000 m3 and 1.7 million m3 respectively, and are currently fully leased out.

On the International front, the net profit contribution for the current financial year decreased mainly due to reduced supply base activities in Saudi Arabia and lower margins earned on specialist products and services sales, and engineering and construction activities performed.

In August 2019, the Group acquired an additional 25% equity interest in a jointly controlled entity, Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”). Following that, the Group booked a RM28.5 million non-cash fair value gain arising from the business combination of a jointly controlled entity to a subsidiary company. Subsequently in December 2019, the Group acquired a further 20% equity interest in HBP and HBP became a 95% owned subsidiary of the Group.

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3 528 55

2 648

20202019201820172016Profit After TaxRevenue

Property, Plant & Equipment

Trade and Other Receivables

Cash and Bank Balances

Other Assets

Investments in Joint Ventures & Associates

FY2020

16%

17%

21% 18%

28%

FY2019

18%

13%

17% 32%

20%

During the year, the Group spent a total of RM537.6 million for the construction of a storage terminal, common tankage facilities with shared infrastructure, and deepwater marine facilities at Jetty 3 for PDT3. These facilities are currently under construction and expected to commence operations in mid-2021.

Additionally, the Group spent a total of RM110.9 million on property, plant and equipment for its other various business activities during the financial year under review.

Cash and Bank Balances

The Group’s cash and bank balances as at 30 June 2020 increased by 40.3% to RM1.24 billion from RM884.4 million a year ago, mainly attributable to net cash generated from operating activities amounting to RM846.6 million and proceeds from redemption of preference shares in a joint venture company amounting to RM383.8 million.

The Group’s cash outflows during the financial year were mainly for its continuing investments in PDT3 development projects and the Phase 1E expansion, which amounted to RM649.0 million. The Group also spent RM210.0 million on its upstream developments for the Production Sharing Contract at D35/J4/D21 Oil Fields and Bayan Oilfield Services Contract at Bintulu, Sarawak, as well as the acquisition of additional 45% equity interest in HBP. This was in addition to RM110.9 million spent on property, plant and equipment for its other various business activities during the year. Total dividend paid during the year amounted to RM197.3 million.

TOTAL LIABILITIES

The Group’s total liabilities as at 30 June 2020 was RM2.95 billion or 5.1% higher against RM2.80 billion a year ago.

Capital Management

The primary objective of the Group’s capital management strategies is to maintain a strong capital base, a good credit rating, and healthy capital ratios to support its businesses and maximise its shareholder value. The Group does this by using various methods including new share issuances, share buy-backs, cash and share dividends, and debt financing.

The Group monitors capital utilisation on the basis of its net debt to equity ratio. The net debt to equity ratio as at 30 June 2020 and 30 June 2019 are as follows:

2019RM’000

2020RM’000

Borrowings (1,674,363) (1,911,145)

Less: Cash and bank balances 884,403 1,240,389

Net borrowings (789,960) (670,756)Total equity attributable to

shareholders3,791,232 4,132,147

Net debt to equity ratio 0.21 0.16

Total equity attributable to shareholders rose by RM340.9 million, primarily contributed by profits for the financial year, offset by dividend payments made during the financial year.

Capital Commitments

As at 30 June 2020, the Group’s total capital commitments approved for property, plant and equipment was RM10.3 million, of which RM6.1 million has been contracted but not provided for.

In addition, the Group had capital commitments approved for its tank terminals business amounting to RM778.0 million. This commitment mainly relates to the Group’s investments in the PDT3 development.

In the upstream sector, the capital commitments as at 30 June 2020 was RM408.0 million, mainly for the Field Development Plan activities under the Bayan Oilfield Services Contract and D35/J4/D21 Production Sharing Contract.

Trade and Other Payables

Other Liabilities

Borrowings

FY2020FY2019 32%37%

3%3%

65%60%


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F I S M D R S

DIALOG Financial Statements 2020

Investors Segment, www.dialogasia.com www.

FINANCIAL KPIs

NON-FINANCIAL KPIs

KEY PERFORMANCE INDICATORS

Earnings Growth (%)Double digit growth*

Health & Safety- Lost Time Injury Rate

Not exceeding 0.15**

Return on Equity (%)A minimum of 12% returns*

Health & Safety- Total Recordable Incident Rate

Not exceeding 0.58**

Current RatioMaintain 1.50 and above

Health & Safety- Fatality

Zero fatality**

Dividend Payout (%)Minimum 40% payout ratio*

Net GearingMaintain at 0.5 and below

Quality Assurance/ Quality Control

Zero non-conformance

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DIALOG’s Key Performance Indicators ("KPIs") measure the Group’s success in maintaining value through sustainable earnings growth, driving business excellence as well as its ability to operate safely and effectively. The Group continually monitors and, when necessary, revise these targets to take into account refinements in the Group's strategy.

For FY2020, the Board recommended a final cash dividend of 1.90 sen per ordinary share, amounting to approximately RM107.2 million. This is in addition to the payment of interim cash dividend of 1.20 sen per ordinary share amounting to RM67.7 million paid in June 2020. In total, the Group will be paying a cash dividend of approximately RM174.9 million for FY2020 which is equivalent to 29% of profits attributable to shareholders. The Board's dividend recommendation is for the purpose of conserving cash, given the continued need to exercise financial prudence in the current economic environment which is expected to remain extremely challenging in the short to medium term.

5-YEAR FINANCIAL SUMMARY

KEY FINANCIAL RESULTS (RM' million) 2016 2017 2018 2019 2020Revenue 2,534 3,393 3,111 2,386 2,303 Profit before tax 369 449 628 653 747 Profit after tax 301 373 528 552 648 Non-controlling interests (6) (2) (18) (16) (18) Profit attributable to shareholders of the Company 295 371 510 536 630

ASSETS (RM' million)Non-Current AssetsProperty, plant and equipment 583 584 1,297 1,304 2,026 Investments in joint ventures and associates 1,291 1,962 2,043 2,138 1,283 Others 472 512 658 1,053 1,388

Total Non-Current Assets 2,346 3,058 3,998 4,495 4,697

Current Assets Trade and other receivables 705 770 768 927 648 Cash and bank balances 944 1,425 1,265 884 1,240 Others 141 564 334 404 601

Total Current Assets 1,790 2,759 2,367 2,215 2,489

Assets classified as held for sale - - - - 4TOTAL ASSETS 4,136 5,817 6,365 6,710 7,190

EQUITY AND LIABILITIES (RM' million)Equity attributable to shareholders of the Company Share capital 527 1,601 1,684 1,684 1,684 Treasury shares (4) (4) (4) (4) (4) Reserves 1,891 1,514 1,820 2,111 2,452

2,414 3,111 3,500 3,791 4,132 Non-controlling interests 69 81 99 117 112

TOTAL EQUITY 2,483 3,192 3,599 3,908 4,244

LIABILITIES Non-Current Liabilities Borrowings 713 1,009 1,233 1,318 1,454 Lease liabilities - - - - 14 Others 5 6 6 5 4Total Non-Current Liabilities 718 1,015 1,239 1,323 1,472

Current Liabilities Trade and other payables 740 1,146 1,075 1,050 931 Borrowings 162 415 378 356 458 Lease liabilities - - - - 5 Others 33 49 74 73 80

Total Current Liabilities 935 1,610 1,527 1,479 1,474

TOTAL LIABILITIES 1,653 2,625 2,766 2,802 2,946

TOTAL EQUITY AND LIABILITIES 4,136 5,817 6,365 6,710 7,190

FINANCIAL RATIOS

Earnings Growth (%) 5.6 23.8 24.0 19.4 17.3Return on Equity (%) 13.4 13.4 13.6 14.7 15.9Current Ratio 1.92 1.71 1.55 1.50 1.69Net Gearing Ratio NET CASH NET CASH 0.10 0.21 0.16Dividend Payout (%) 40 40 41 40 28

SHARE INFORMATION

Earnings per share (sen) 5.70 6.88 9.06 9.50 11.18Dividend per share (sen) 2.20 2.65 3.20 3.80 3.10Net assets per share (sen) 46.7 57.8 62.1 67.2 73.3Number of ordinary shares ('million) 5,269 5,592 5,642 5,642 5,642



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Sustainability Report: pages 64 to 92 Quality Assurance and Quality Control: pages 56 to 57

* The computation for FY2020 and FY2018 KPIs excluded fair value gains recorded on deemed disposal of jointly controlled entities amounting to RM28.5 million and RM65.6 million, respectively.

** The details are set out in the Sustainability Report.

F H S D R S

Our Malaysian operations remained resilient in FY2020, as we remained busy with various activities across the upstream, midstream and downstream sectors during the year.

At DIALOG Terminals Langsat, we successfully completed and commissioned 120,000 m3 of storage capacity at Dialog Terminals Langsat (3) Sdn. Bhd. (“DTL3”), thus bringing the total capacity at our Langsat Facility to 770,000 m3 presently.

We are now working on the expansion of another 85,000 m3 at our Langsat facility to store clean petroleum products, which is expected to be completed and ready for operations by Quarter 4 of 2021. DIALOG’s strategy for its Langsat facility is to continue to enhance its value proposition by enhancing its efficiencies and product storage flexibility.

After this expansion of 85,000 m3 storage capacity, DIALOG still has 17 acres of land which can add approximately another 200,000 m3 of storage capacity to DIALOG Terminals Langsat over the longer term, thus bringing the total capacity at the Langsat facility to over 1.0 million m3, from its present capacity of 770,000 m3.

Over at Pengerang Deepwater Terminals (“PDT”) – we also saw the successful completion and commissioning of the expansion of an additional 430,000 m3 of storage capacity at Phase 1E in Pengerang Independent Terminals Sdn. Bhd. (“PITSB”). PITSB blends and distributes crude and petroleum products for oil majors and traders in the region. This now brings the total capacity at PITSB to 1.7 million m3.

The timely additions of the capacities above boded well for the Group, as we were able to benefit from the increase in demand for storage during the year.

In Phase 2 of PDT, the ongoing operations of Pengerang Terminals (Two) Sdn. Bhd. (“PT2SB”) and Pengerang LNG (Two) Sdn. Bhd. (“PLNG2”) continued to contribute to the Group’s performance during the year.

In Phase 3 (“PDT3”), we completed the reclamation of 300 acres of land in December 2019 and the ongoing development of dedicated petroleum and petrochemical storage terminals carried on without significant interruption during the year. The development of 430,000 m3 storage tanks for clean petroleum

FY2020 REVIEW OF OPERATIONS

MALAYSIA

DIALOG Terminals Langsat

products for the Long Term Storage Agreement (“LTSA”) with BP Singapore Pte. Limited (“BPS”), and common tankage facilities including shared infrastructure and Jetty 3, remain on track for completion by mid-2021.

Upon completion, PDT3 will be a one-stop integrated terminal that offers Port and Marine Operations, Storage Tank Terminals and Common Facilities including deepwater jetty facilities, integrated berth planning, cargo handling, interconnecting pipelines across PDT, multi-product storage, integrated infrastructure solutions and shared third party utilities and services. In summary, PDT3 will offer a ‘plug and play’ concept to our clients, facilitating easy set up for customers and investors. Furthermore, PDT3 will support downstream petrochemical manufacturing activities within the Pengerang Integrated Petroleum Complex.

The phased capacity expansions across our terminals business as mentioned above and the continued development of Pengerang Deepwater Terminals is in line with the Group’s longer term strategy to grow its midstream terminals business to generate sustainable & recurring income. Overall, our terminals business continued to register sustainable profits during the period under review and has contributed significantly to the resilience of the Group’s performance during the year.

Pengerang Marine Operations Sdn. Bhd. (“PMOSB”) manages and handles all marine services within PDT. Together with its Marine Auxiliary Police Team, PMOSB also provides round-the-clock marine security coverage and protection for all stakeholders in PDT. In FY2020, there was an increase of incoming vessels with all jetties almost at full capacity, with 1091 vessels (FY2019: 532 vessels) and total throughput of 30 million metric tonnes (“MT”) (FY2019: 15.7 million MT). Established since 2014, PMOSB has received more than 3,200 vessels with throughput of more than 90 million MT, inclusive of 56 Very Large Crude Carriers (“VLCC”) and 80 LNG vessels.

During the year, we continued to improve our terminal operation practices in line with our Terminals Operability, Reliability, Environmental, Safety (“TORES”) assessment results, and also launched 10 Critical Safety Elements in line with our continuous emphasis on HSE excellence.

On the Downstream front, our Plant Maintenance Division had one of its busiest years involving in numerous turnaround and plant rejuvenation projects in FY2020. The division specialises in providing a wide range of maintenance, specialist services, plant shutdown and turnaround services for refineries, petrochemical, gas and chemical plants.

Phase 1E, Pengerang Independent Terminals


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We are making good headway in bringing the total capacity at the Langsat facility to over 1.0 million m3, from its present capacity of 770,000 m3

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I H S NM D R T S TECH

We participated and successfully executed back-to-back shutdown, turnaround and plant rejuvenation projects, namely at Petronas Chemicals Olefin, Glycol & Derivatives (“PCOGD”), Petronas Chemicals Ammonia (“PCASB”), BASF-Petronas Chemical Plants (“BPC”) at Gebeng, Gas Processing Santong, Petronas Gas Bhd (“PGB”) and Melaka Refining Company (“MRCSB”). Among them, the largest turnaround project undertaken was the PSR2 Turnaround at MRCSB, where a workforce more than 3,000 strong was deployed during the 1-month work schedule.

These projects were completed successfully, meeting all the crucial key performance indices, namely zero Loss Time Injuries, zero leaks and on-time completion.

In addition to plant maintenance expertise, the division also provides services for commissioning and maintenance of catalytic reactors, vessels and columns. Catalyst Services also witnessed a busy year, involving multiple catalyst handling projects both in shutdown environments, as well as at offshore platforms across Malaysia, Brunei, Indonesia, Thailand and Australia. In Australia, we continued to leverage on our catalyst handling track record and expertise, to expand and provide other specialised mechanical services. These services were mainly focused in gas plants located in the eastern part of Australia.

For our Engineering & Construction (“E&C”) division, aside from the successful delivery of the capacity expansions in DTL3 and PITSB, and the ongoing development of Phase 3, E&C successfully completed the construction of H2S and MESH process units for Arkema Thiochemicals in its K2 project in Kerteh, and tank bottom plate replacement works for Shell Trading Malaysia in Westport. E&C also completed a crucial project to support the drilling campaign at the Bayan Field during the year. It comprised of the engineering, procurement, fabrication, installation and commissioning (“EPCIC”) of a deck extension as well as modifications across three platforms that was awarded by Petronas Carigali.

Alongside all of the above, E&C also continued to tirelessly pursue new opportunities during the year under review, which resulted in two new job awards by Petronas Gas Bhd for a steam pipeline project in Gebeng as well as a FEED study for a new LNG Filling Terminal at Bintulu.

Fabrication activities were higher this year mainly in support of major projects, E&C and OTEC. During the year, it also completed the supply of Mercury Removal Units associated pressure vessels and filters for Bergading Platform for Hess Corporation. Current works include the supply of Mercury Removal Units associated pressure vessels for the Kasawari platform for MMHE, which is expected to be completed in the first quarter of 2021.


Deck extension for Bayan Field

The business environment for our Fibreglass Reinforced Plastic (“FRP”) division continued to be challenging, with significant competition from commoditised products, and the low oil price environment towards the last quarter of FY2020. Nonetheless, FRP was able to secure new work from Petronas Carigali in Myanmar.

Specialist Products & Services (“SPS”) Malaysia is the Group’s trading arm for specialty products and services for oil and gas, petrochemical and refinery markets. In FY2020, SPS Malaysia recorded higher growth in revenue compared to the previous year, contributed mainly by higher sales of digital and automation solutions.

In line with Industry 4.0 initiatives, SPS Malaysia is targeting to expand market share in the Upstream, Downstream and Power Plant sectors, focusing on Digitalisation and Automated Control Systems in partnership with Honeywell. The division also continues to supply drilling fluid, catalysts, valves and compressor blowers to major oil and gas companies in Malaysia.

Meanwhile, in the Upstream sector, we successfully completed the acquisition of an additional 25% and 20% equity stake in Halliburton Bayan Petroleum Sdn. Bhd. (“HBP”) from our joint venture partner, Halliburton International, Inc., in August 2019 and December 2019 respectively. This resulted in HBP becoming a subsidiary of the Group with effect from August 2019.

HBP is the independent technical service contractor for the Oilfield Services Contract (“OSC”) entered into with Petronas Carigali Sdn. Bhd. (“PCSB”), to provide Contractor Services required to enhance the recoverable reserves from the Bayan Field. The Bayan Field is located offshore Bintulu, Sarawak with a term of 24 years (up to 2036).

Aside from the acquisition, FY2020 continued to see rigorous Production Enhancement and Development initiatives for both the OSC and the D35/J4/D21 Production Sharing Contract (“PSC”). The redevelopment drilling programmes in the OSC and PSC were executed both efficiently and safely during the year, and the wells drilled are expected to enhance production from these fields significantly.

Oil price volatility will continue to influence the performance of our upstream assets and we have been monitoring global developments closely. We have taken proactive steps in collaboration with our partners to mitigate its impact. These include cost optimisation and cash flow management initiatives, and the ongoing review of capital and operational expenditures.

DIV Services (“DIV”), the digital arm of the Group continues to nurture in-house expertise to innovate and develop new technologies in oil and gas, and deploy enterprise-wide solutions to automate and digitise work processes to drive efficiency and productivity across the Group. During the year under review, DIV continued to enhance the Group’s proprietary software applications as well as develop new ones such as our Terminal Management System (“TMS”) and Fleet Management System (“FMS”).

Pre-COVID-19, the Group had already embarked on initiatives such as the implementation of cloud-based collaboration platforms, as part of its ongoing digitisation plans. This enabled the Group to transition to work-from-home arrangements in record time, and with minimal disruptions to our operations when the various lockdowns were implemented. Besides supporting the Group, DIV continues to provide cashless payment solutions focusing on the areas of welfare, education and recycling.


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The Group had already embarked on initiatives such as the implementation of cloud-based collaboration platforms, as part of its ongoing digitisation plans. This enabled the Group to transition to work-from-home arrangements in record time. ‘‘

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Our Singapore-based OTEC is an established Engineering, Procurement & Construction (“EPC”) Contractor that services the oil & gas industry with a specialisation in infrastructure and maintenance of tank storage terminals in Singapore and in the South-East Asia region.

In FY2020, OTEC successfully completed the 39m Large Cooling Water Intake Pipe fabrication project for Mitsui E&S Engineering Co. Ltd. in Central Java, Indonesia. OTEC also completed the fabrication work of the Largest External Floating Roof Tank to date of 102m diameter, in Pengerang fabrication yard for ExxonMobil, Singapore.

Despite the competitive business climate in FY2020, OTEC was also able to secure new projects and continue its expansion in the region, through its competitive pricing and impeccable track record. OTEC secured and is currently executing Vopak’s Ammonia Truck Loading Facility project in Singapore, whilst in the Philippines, OTEC has kept pace and secured a second tankage project after the completion of its first project, a Vinyl Chloride Monomer Sphere Tank for JNC Engineering Co. Ltd., last year.

Apart from Engineering & Construction services, other business activities in Singapore are plant services and sales of specialty products such as catalyst and chemicals to international oil and gas companies. During the year, plant

services made good strides and was awarded tank repair and modification works for 2 tanks for Oiltanking Singapore. Its good performance was rewarded by the award of a 3rd tank for repair and modification works, which is currently in progress. The plant services team also completed 2 turnarounds for Shell Jurong Island Ethylene Oxide Glycol (“EOG”) Plant and Airliquide, as well as a shutdown for Sembcorp.

DIALOG’s Indonesia team continued to focus on the marketing of specialist products and services (“SPS”) such as the supply of drilling oils and catalyst and production chemicals to upstream operators in Indonesia. Our clients include Pertamina, ExxonMobil, Conoco-Phillips and ENI. The team also provided plant maintenance and catalyst handling services to oil, gas and petrochemical plants in Indonesia.

Similarly, in Thailand, our local trading arm is actively supplying specialist products to the Thailand and Myanmar oil and gas industry. During the year, our DIALOG team in Thailand secured a new base oil supply agreement to Baker Hughes in Myanmar, and also managed to introduce new catalyst products to the Thai downstream industry.

The fabrication division in New Zealand and Australia under Dialog Fitzroy Limited (“DFL”) had a reasonably good year. In Australia, we were successful in securing an EPC contract

INTERNATIONAL

Large water intake pipes at DIALOG fabrication yard in Pengerang

with Vopak for a new tank facility in Sydney. DFL also strengthened its regional dominance in heavy fabrication and was particularly busy building pressure vessels and heat exchangers. Meanwhile, the engineering division established several important EPC opportunities with petrochemical and oil and gas clients in Taranaki.

DFL is also exploring opportunities and continuing to look for business outside of oil and gas with emphasis on dairy and pharmaceutical businesses.

The year saw increased sales of drilling oils in response to increased activity. The unit’s catalyst handling services also expanded beyond its core catalyst handling to include other specialised mechanical services. These services were focused on gas plants located in eastern Australia.

Separately in the Australia and New Zealand SPS business, DIALOG maintained its dominant share of the drilling base fluid market with strong sales to drilling campaigns in Western Australia and Victoria. While offshore drilling in the region has been disrupted by COVID-19, these activities are scheduled to resume in the fourth quarter of 2021 in both Australia and

New Zealand. Our catalyst handling and mechanical services teams continue to service customers primarily in remote parts of Australia and have now established a presence in the Gladstone region in Queensland.

Our Middle East and South Asia SPS teams continued to hold on to their key markets for the year under review, specifically for base oil supply in Oman and India. In FY2020, the team also expanded to new markets for existing products and was able to secure sales to Central Asia.

For our Saudi operations, Dialog Jubail Supply Base Co. Ltd. (“DJSB”) continued to support international oil and gas companies in the Arabian Gulf, such as McDermott, Dynamic Industries and COOEC. It also continued to form strategic partnerships with specialised service providers to provide value-added supply base services to clients. In FY2020, DJSB recorded 983 vessel calls.

Dialog Services Saudi Arabia Co. Ltd. (“DSSA”) remained focused on specialised plant services to major plants in Saudi Arabia and continues to work closely with such petrochemical majors such as SABIC, Saudi ARAMCO and Dow Chemicals.

Construction of tanks at Vopak Terminal Sydney


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AWARDS AND ACHIEVEMENTSHI T TECH


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QUALITY ASSURANCE AND QUALITY CONTROL

DIALOG takes pride in meeting customer needs by delivering products and services of the highest quality, utilising the latest inspection techniques and technologies.

Our quality standards are continually updated and improved group wide through uncompromising compliance with regulatory and statutory standards.

The Group is committed to consistently maintaining its Quality Management System to ISO 9001:2015 by identifying lessons learned and ensuring that risks that could affect product and service quality are identified and addressed.

The Group also diligently maintains the quality certifications of its subsidiaries. All ISO9001 certified organisations have successfully completed transition audits to the latest Quality Management System and are ISO 9001:2015 compliant.

The previously established Quality Steering Committee supports and strengthens DIALOG Group Management and Quality Assurance and Quality Control ("QAQC") in ensuring the effectiveness of the quality management system by sharing and analysing critical data related to quality performance indicators that are relevant to the Group. This dovetails with our commitment to the highest standards of quality throughout Group operations.

Currently, DIALOG through its subsidiaries is certified with the following: a) ISO 9001:2015 Certificationb) ISO/TS 29001:2010 Certificationc) American Society of Mechanical Engineers Certificates of

Authorisation for "U", "U2", & "S" d) National Board Certificate of Authorisation for "NB" and

"R" e) Certificate of Manufacturing Assessment for Fibreglass

Reinforced Plastic products (Product Type Approval)

Key activities in FY2020:

After the successful approval and issuance of the integrated DIALOG Group Quality Manual, Quality Policy and Procedures to replace individual Quality Management Systems for our Malaysian business units in FY2019, Group QAQC’s focus in FY2020 was to complete the roll-out of the standardized monthly reporting process and document control system in SharePoint for all projects. The roll-out has been completed successfully and Power BI is being used to extract data from site registers for ease of reporting and establishing trend analysis.

Gaps are then identified by means of audits and trend analysis, and required training programs initiated to improve competency of personnel both at headquarters and at respective project sites.

During the year under review, Group QAQC also kicked-off and made good progress on the merging of the ISO certifications of the Malaysian businesses.

Key activities targeted for FY2021:

Merging the ISO certifications of the Malaysian businesses remains the Group’s target and is expected to be completed by end 2020. This will ensure enhanced productivity and efficiencies from a single, uniform and standardised Group Quality Management System.

Upon completion of the merging of ISO Certifications for the Malaysian businesses, Group QAQC will proceed to roll it out to our international operations.

In addition to the above, the DIALOG Group Quality mission for FY2021 is “Customer Satisfaction” and specific target areas that have been identified are ISO Certification, Inspector Competency, Trend Analysis and Improved Project Execution.

KEY RISKS AND OPPORTUNITIES

BUSINESS RISKS, MITIGATING CONTROLS AND OPPORTUNITIES ARISING

DIALOG’s culture and effective risk management strategies enable the Group to effectively manage our risk exposure during operations.

Key operational risks and their mitigating controls, together with the opportunities arising that form the basis of our core strategies are summarised in the following table. The Group’s capital and financial risks are reported in the Notes to DIALOG’s Financial Statements.

5 STRATEGIES

6 CAPITALS

Financial

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• Established and implemented HSE Management System ("HSEMS") across the Group’s operations, including contractors, suppliers and stakeholders.

• Audits and inspections are conducted periodically to ensure effective HSEMS implementation and legal compliance.

• Continuous enhancement, trainings and awareness of regulations, requirements and incident learnings are conducted to promote a strong HSE culture.

• Target expectations and KPIs are set to create greater awareness and accountability for HSE performance.

• Adoption of internationally recognised certifications in maintaining a high HSE standards across DIALOG’s activities and businesses.

• Implementation of, and adherence to relevant Standard Operating Procedures and Guidelines in managing and minimising the impact of COVID-19 pandemic at the work place and surrounding environment.

• The Group’s business diversification in upstream, midstream and downstream sectors of the oil, gas and petrochemical industry enables it to manage through periods of volatility in the market environment.

• Continuous strategic reviews of Group business strategies and tactics to ensure operational sustainability.

• Ongoing engagement with existing and new clients / business partners to identify new markets and business opportunities.

• Prudent financial management to ensure the Group has the financial strength to withstand periods of uncertainty.

The Group places very strong emphasis on Health, Safety & Environment (“HSE”) practices to ensure the safety of our employees, stakeholders and assets, as well as the surrounding environment in which we operate.

The global market’s economic, political and social factors remain beyond the Group’s control.

The oil and gas industry continues to experience market uncertainty resulting from the COVID-19 pandemic outbreak, geopolitical conflicts and fears of global growth slowdown which may impact the supply and demand equilibrium.

KEY RISKS

Health, Safety & Environment

Market and Business

Environment

DESCRIPTION

Non-compliance or a major HSE incident would affect the Group’s business and its reputation.

Pandemic outbreak or public health crisis impacting employees’ health could disrupt business operations.

Oil price and currency volatility could adversely impact the Group’s business performance and affect the sustainability of the Group.

IMPACTLINK TO

CAPITALSLINK TO

STRATEGIESMITIGATING CONTROLS

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Learning & Development, Sustainability Report: pages 83 to 85

Capital and Financial Risk Management, DIALOG Financial Statements 2020: pages 85 to 89

Economic Performance, Sustainability Report: pages 68 to 69

Strategic Alliances: page 62

KEY RISKS AND OPPORTUNITIES

5 STRATEGIES

6 CAPITALS

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OPPORTUNITIES

Strategic OpportunitiesThe diversification of the Group’s businesses, combined with its financial strength and strong relationships with stakeholders, would provide strategic opportunities for the Group during different phases of the market cycle.

Multi-skilled Workforce SynergiesThe Group’s diversified business model also provides opportunities for us to attract, develop and retain a multi-skilled workforce, which can then be mobilised across the Group’s different sectors during different phases of the market cycle.

Competitive Advantages Through TechnologyIn addition to the above, the Group has the opportunity to enhance its competitive advantage through the adoption and/or development of new technology to increase operational efficiencies, and maintain its delivery track record.

The Group is renowned for excellence in its delivery and execution of projects and services in the oil, gas and petrochemical industry.

The Group’s business could be exposed to litigation risks by our clients, vendors and other parties.

The security of the Group’s employees, operating assets, facilities and information systems are of paramount importance.

Operations

Legal

Security

DESCRIPTION

Any significant failure of internal processes, people and systems, or arising from external events, would impact the Group’s ability to meet its deliverables.

Such actions may have a material effect on our financial status and operational results.

Security breaches or incidents can cause operational disruptions to the Group.

• Leveraging on the Group’s core competencies, processes and network of facilities which enable us to achieve cost savings, improve efficiency and productivity.

• Ongoing project and operations monitoring at various levels, including engagements with clients and relevant stakeholders, to ensure timely completion within budget while meeting required HSE and quality standards.

• Enhancement of the Group’s operational processes by way of continuous improvement, lessons learnt and adoption of technology and best practices.

• The Group has in place contracts and agreements to govern contractual agreements with its customers and vendors.

• Continuous review and management of contractual terms and conditions by the business units to ensure compliance at all times.

• The Group has robust systems in place to manage the quality and accuracy of all its project activities.

• The Group has established close working relationships with relevant local enforcement authorities for security patrols at our operating facilities.

• The Group has security systems in place at all its work locations, covering physical and IT systems. They are regularly reviewed to ensure effectiveness.

• Continuous updates of the threat landscape and business environment, inclusive of awareness sessions, are carried out to enhance the Group’s IT security system capabilities against latest IT and cyber threats.

IMPACT MITIGATING CONTROLSLINK TO

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Management Discussion and Analysis: pages 42 to 62

Management Discussion and Analysis: page 51

Quality Assurance and Quality Control: pages 56 to 57

KEY RISKS


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STRATEGIC ALLIANCESSI S TECH

MANAGEMENT DISCUSSION AND ANALYSISKEY MESSAGESOVERVIEWD

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phase two phase three - dialog group berhad - dialog group

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