Scope of Briefing Address by Executive Chairman Group Financial - - PDF document

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1H 2007 Results Announcement

26 July, 2007

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Scope of Briefing

Address by Executive Chairman Group Financial Highlights Business Review & Outlook

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Address By Executive Chairm an

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1 H’0 7 - Strong Set Of Results

• 2Q’07 PATMI up 32% to $258m
• 1H’07 PATMI increased 39% to $510m
• 1H’07 EVA rose 90% to $365m

I ncreased contributions from O&M, Property, I nfrastructure, SPC

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Building Enduring Businesses

Offshore & Marine

• Grow premium suite of solutions to tap deepwater & production demand
• Broadened & grew net orderbook to $11.3b – deliveries into 2010

Property

• Capitalising on regional demand trends : large-scale townships & integrated lifestyle

communities

• Expanding township portfolio in Asia > 150m ft 2 GFA
• Entrenching pole position in Vietnam : 6 projects in HCMC, Hanoi & Dong Nai (new)

I nfrastructure

• Building upon track record : pursuing large projects in Middle East & Europe

Enhancing Capabilities Expanding Geographic Reach

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Harnessing Group Synergies

Hum an Capital Resources Collective Netw orks

Middle East Vietnam China

Ras Laffan JV

yard

Waterfront property

projects with ALDAR

$1.7b Qatar integrated waste

management project

Rig orders from

PV Drilling

Property projects in

HCMC, Dong Nai, Hanoi

Infra

• pportunities

Interests in E&P

acreages

Keppel Nantong

Shipyard

Launching homes in

8 cities

Providing WTE

packages

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Positioned to capture grow th

• pportunities

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Group Financial Highlights

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1 H’0 7 Financial Achievem ents

PATMI EPS Annualised ROE EVA Free cash flow Net gearing Interim dividend 39% to S$510m 39% to 32.3cts from 19.1% to 20.5% S$172m to S$365m 9% to S$696m from 0.24x to 0.16x 82% to 9cts per share

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Financial Highlights

S$ m 1 H 2 0 0 7 % Change Revenue 4 ,4 8 2 4 1 EBI TDA 5 5 2 3 0 Operating Profit 4 9 4 3 7 Profit Before Tax 7 4 1 2 6 PATMI 5 1 0 3 9 EPS ( cents) 3 2 .3 3 9 1 H 2 0 0 6 3 ,1 9 0 4 2 4 3 6 1 5 8 7 3 6 6 2 3 .2

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S$ m 1 H 2 0 0 7 % % Change Offshore & Marine 3 ,2 5 9 7 2 3 5 Property 8 4 7 1 9 8 5 I nfrastructure 3 4 7 8 2 4 I nvestm ents 2 9 1 ( 2 9 ) Total 4 ,4 8 2 1 0 0 4 1

Revenue by Segm ents

1 H 2 0 0 6 % 2 ,4 1 2 7 6 4 5 7 1 4 2 8 0 9 4 1 1 3 ,1 9 0 1 0 0

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S$ m % Change Offshore & Marine Property I nfrastructure I nvestm ents Total

PATMI by Segm ents

1 H 2 0 0 6 % 1 7 4 4 8 5 5 1 5 ( 2 5 ) ( 7 ) 1 6 2 4 4 3 6 6 1 0 0 1 H 2 0 0 7 % 2 8 3 5 6 9 4 1 8 1 4 3 1 1 9 2 3 5 1 0 1 0 0 6 3 7 1 NM ( 2 7 ) 3 9

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13 1 8 2 1 9 2 2 3 7 2 7 7 1 7 4 2 2 8 2 8 7 2 0 2 1 7 0 2 5 2 1 9 6 2 5 8 2 0 1 1 8 4 '0 2 '0 3 '0 4 '0 5 '0 6 '0 7 1 1 .9 1 2 .4 1 5 .3 1 7 .7 1 1 .3 1 4 .6 1 8 .4 1 3 .1 1 5 .9 1 0 .8 1 6 .4 1 2 .4 1 2 .8 1 1 .7 '0 2 '0 3 '0 4 '0 5 '0 6 '0 7

Consistent Earnings Grow th

1 H 2 H

PATMI ( S$ m ) EPS* ( Cents)

3 5 6 3 9 4 2 3 .2 2 5 .5 4 6 5 2 9 .9 5 6 4 3 6 .1

1 Q: 2 Q: 1 Q: 2 Q:

7 5 1 4 7 .7

3 Q: 3 Q: 4 Q: 4 Q: 1 Q: 1 Q:

5 1 0 3 2 .3

2 Q: 2 Q: * Adjusted for the sub-division of shares 14

Continued EVA Grow th

’0 2 ’0 3 ’0 4 S$ m ’0 5 ’0 6 1 H’0 7 ( 6 70) ( 4 70) ( 2 70) ( 70) 1 30 3 30

+ $ 1 7 0 m + $ 1 6 0 m

( 2 9 5 ) ( 1 2 5 ) 1 9 9

+ $ 1 6 4 m

3 5 4 2 3

+ $ 2 2 4 m

1 H:1 9 3

3 6 5

+ $ 1 7 2 m

2 H:2 3 0

( 6 6 5 )

+ $ 3 7 0 m

’0 1

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20.5% 19.1% 16.4% 15.5% 14.1% 13.4%

2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 1 H'0 7 * ROE Dividend

I ncreasing ROE & Dividend

Capital distribution 6 .0 cts/ share Capital distribution 9 .0 cts/ share Capital distribution 1 0 .0 cts/ share Capital distribution 1 1 .5 cts/ share * Annualised ROE Dividend and capital distribution have been adjusted for the sub-division of shares Plus Plus

I nterim Dividend

Capital distribution 1 4 .0 cts/ share Plus Plus 9 .0 cts 9 .5 cts 1 0 .0 cts 1 1 .5 cts 1 4 .0 cts

6 .0 cts

Plus

9 .0 cts

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Healthy Free Cash Flow

1H 2007 S$m Operating profit 494 Depreciation & other non-cash items 49 Working capital changes 618 Net cash from operating activities 1 ,0 7 8 Net cash used in investing activities ( 3 8 2 ) Free Cash Flow 6 9 6 Investments & capex (566) Divestments & dividend income 184 Interest & tax paid (83) 543 Dividends paid ( 3 5 4 )

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Business Review & Outlook

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Offshore & Marine

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Contracts Secured

2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 1 H'0 7

A Healthy First Half

3 .1 2 .2 6 .5 S$ b 7 .3 3 .3

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1 1 .3 1 .9 3 .4 7 .2 1 0 .5 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 1 H'0 7

Net Orderbook Continues To Grow

S$ b

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Delivering Leading-Edge Solutions

World’s 1st LNG FSRU One of world’s largest

gas FPSOs

KFELS B Class KFELS Super B

Class

Concurrent drilling

& production

North Sea compliant Ice-Class FSO Ice-Class AHTS Icebreaking vessels

I ce-Class N Class JUs Jackups Conversions

Co-designed

proprietary DSSTM suite

Proprietary design

semi-drilling tender

1st for North Sea

in > 20yrs

Co-developed

proprietary design

Sem is Floatel

Hum an Capital Proprietary Technology Track Record Global Netw ork

FPUs

Production semis FPSO conversions TLPs & SPARs

(through FloaTEC)

Com petencies:

Drillship

Enhancing range of

deepwater solutions 22

1 4 % 1 0 % 3 6 % 1 0 % 4 % 2 6 %

Jackups Ot hers

Penetrating Deepw ater & Production Markets

1H’07: S$3.3b contracts

P5 1 & P5 2 FPUs under construction

North Sea accommodation semis

Deepw ater Floatel

4th ENSCO ultra-deepwater

• rder in 21 mths

Proprietary design semi-drilling

tender

Deepw ater Sem is N Class Jackups FPSO Conversions

2 orders in 1H’07 Leadership position

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Healthy prospects for continued orderbook grow th

Fundam entals Rem ain Favourable

• Oil prices sustained above E&P capex levels
• Tight supply-demand & need to replenish reserves drive E&P
• Dayrates remain at high levels
• > 90% global offshore rig fleet utilisation
• Search for hydrocarbons moves into deep, ultra-deepwater &

challenging environments, with follow-on production needs

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Oil & Gas

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Refining Margins Rem ain Healthy

• Significant new refinery project delays/ cancellations as

construction costs escalate

• More cost-effective to upgrade/ expand existing

refineries

• Increasing demand for refined products

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Building Oil & Gas Value Chain

I ndonesia - Kakap PSC I ndonesia - Sam pang PSC Cam bodia – Block B Vietnam – Block 1 0 2 & 1 0 6

Asia-Pacific Portfolio

Australia– Bass Basin Block T0 6 -3 Vietnam – Block 1 0 1 - 1 0 0 / 0 4

SPC seeking

• pportunities to

acquire m ore E&P assets

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Property

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Strengthening Our Regional Thrusts

Beachhead into the Middle East Establishing greater presence in China Extending leading position in Vietnam Scaling-up township developments across Asia

Strengthening Our Regional Thrust

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Expanding Foothold I n Tianjin

The Arcadia

Proximity to economic &

science development zones

168 luxury villas Launch: 2H’07

Xin Li Zhen

MOU Along new Tianjin-Binhai mass

transit line

> 50,000 homes

Gegu

MOU Mega waterfront precinct Spearheading master planning

& infrastructural development

Villas

I ntegrated Lifestyle

Integrated golf courses &

residential projects

> 10,000 homes

Evergro in Tianjin

Tow nships

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Rolling Out Quality Hom es I n Vietnam

The Estella

Prime An Phu Ward 1,600 homes Launch: 2008

Condos – Saigon River

500 luxury waterfront homes Launch: 2008

Condos - Ca Cam River

2,400 waterfront homes Launch: 2008

Prim e Condos

Saigon Sports City

Tow nships

Dong Nai

14,000 waterfront homes Launch: 2009

North Thang Long

MOU Strategic location

between CBD & int’l airport

Sai Dong

MOU 6km from CBD

Ho Chi Minh City Hanoi

3,000 homes Launch: 2H’07

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Substantive Tow nship Pipeline

2009 14.0 8,300 Xin Li Zhen (Ph. 1) Tianjin 2008 32.1 15,000 Gegu (Ph. 1) Tianjin 2009 12.0 8,700 Metro North (Ph. 1) Manila 2009 28.0 14,000 Dong Nai township Dong Nai

150.8 78,500 Grand Total

2H’07 7.2 4,700 Wuxi township Wuxi 2H’07 11.3 7,000 Jakarta Garden City Jakarta 2H’07 8.5 3,000 Saigon Sports City HCMC

• ngoing
• ngoing

30.0 7.7 12,000 5,800 Taman Sutera Botanica Johor Chengdu

Launch Date GFA (m sf)

• No. of Units

Project City

Earnings contribution to increase as rollout accelerates

32 13.5 12.0 11.5 9.7 8.1 7.5 6.4 6.1 5.7 4.3 4.1 3.9 Tokyo Inner Tokyo Outer Mumbai New Delhi Hong Kong Dubai Abu Dhabi Seoul Singapore Shanghai Pudong HCMC Shanghai Puxi

Singapore Office Outlook Rem ains Firm

Average Prim e Office Rents – Asia Pacific

Source: CBRE Global Market Rents May 07

• Office market remains tight

~ 0.75m sf average new

supply p.a. till 2010

1.5-1.7m sf average net

demand p.a. over last 10- 15yrs

• Transitional office space

released – non-prime

US$ psf

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I nfrastructure

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Developing I nfra Grow th Platform s

5 0 0 MW Cogen Plant Operational: 2Q’07 Ecuador Pow er Barge Operational: 4Q’06 S’pore 5 th I ncineration Plant Operational: 2009 NEW ater Plant Operational: 1Q’07 S$ 1 .7 b Qatar W aste Mgt Facility EPC: 2007-09; O&M: 20yrs

W aste Managem ent

W ater Pow er

Secured 5 th Algeria Project DBO wastewater treatment

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Middle East

Estimated US$100b investment in water

& desalination projects over 10yrs

Europe

Stringent water quality standards to

combat pollution & contamination

China

US$130b investment for 2006-10 to

address water scarcity & pollution

Target > 60% urban wastewater

treatment by 2010

Europe

Strict landfill regulations drive

alternative waste treatment solutions

Target 20% of energy needs from

renewable sources by 2020

China

Target energy from waste - 30% of

waste disposal by 2030

W aste-To-Energy W ater

Global Environm ental Concerns

Pursuing opportunities in Middle East, Europe & China

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Outlook Grow th Drivers Rem ain Favourable

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Keppel Corporation 1 H 2 0 0 7 Results

Thank You Q&A

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Additional I nfo

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Keppel Corporation

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S$ m 2 Q 2 0 0 6 % Change Revenue 1 ,6 4 6 4 9 EBI TDA 2 1 7 3 1 Operating Profit 1 8 5 3 6 Profit Before Tax 3 3 2 PATMI 1 9 6

Financial Highlights

2 Q 2 0 0 7 2 ,4 5 4 2 8 4 2 5 2 3 8 1 2 5 8 1 5 3 2

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Total Singapore Overseas S$ m % % Offshore & Marine 3 ,2 5 9 4 I nfrastructure 3 4 7 5 9 Property 8 4 7 6 5 I nvestm ents 2 9 6 6 Total 4 ,4 8 2 2 0 1 H 2 0 0 7

8 0 % of total revenue cam e from overseas custom ers

Revenue by Custom ers

9 6 4 1 3 5 3 4 8 0

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S$ m % 1 H 2 0 0 7 % % Change Offshore & Marine 6 3 3 4 6 Property 3 2 1 7 9 I nfrastructure 1 7 I nvestm ents 1 0 Total 1 0 0 5 5 2 1 0 0 3 0

EBI TDA by Segm ents

6 0 3 4 ( 3 ) 9 3 2 3 6 2 4 NM ( 7 3 ) 1 H 2 0 0 6 2 5 4 1 4 4 ( 1 1 ) 3 7 4 2 4

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Capital/ Gearing/ ROE

S$ m Shareholders' Funds Capital Em ployed Net Debt Net Gearing ROE 3 0 Jun 2 0 0 7 4 ,4 7 8 5 ,8 9 9 9 7 2 0 .1 6 x 2 0 .5 % * 3 1 Dec 2 0 0 6 4 ,2 0 5 5 ,5 9 8 1 ,3 3 9 0 .2 4 x 1 9 .1 %

* Annualised ROE

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Offshore & Marine

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S$ m 1 H 2 0 0 6 % Change Revenue 2 ,4 1 2 3 5 EBI TDA 2 5 4 3 6 Operating Profit 2 2 4 3 8 Profit Before Tax 2 6 3 PATMI 1 7 4

Financial Highlights – Offshore & Marine

1 H 2 0 0 7 3 ,2 5 9 3 4 6 3 0 9 3 6 3 2 8 3 3 8 6 3

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S$ m 2 Q 2 0 0 6 % Change Revenue 1 ,1 9 6 4 4 EBI TDA 1 3 4 2 7 Operating Profit 1 1 9 2 7 Profit Before Tax 1 4 0 PATMI 9 5

Financial Highlights – Offshore & Marine

2 Q 2 0 0 7 1 ,7 2 3 1 7 0 1 5 1 1 7 7 1 3 2 2 6 3 9

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Offshore & Marine Review

• S$2.7b contracts secured in 2Q 2007:

1 accommodation semi, 1 semi newbuild, 1 semi drilling tender, 1 JU-N Class, 1 JU, 2 JU repairs, 3 FPSO conversions, 1 FPSO

• utfitting, 1 Derrick Barge upgrade, 1 AHT, 5 tugs
• Major contract completions in 2Q 2007:

3 JUs, 1 JU upgrade/ repair, 1 semi upgrade, 3 FPSO conversions, 1 AHTS, 1 pipelayer conversion

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Offshore & Marine Orderbook

Clients

TOTAL as at 3 0 June 2 0 0 7

1 1 ,3 4 9

Balance Order S$ m For delivery in 2 0 0 7 735 For delivery in 2 0 1 0 3 Semis / 3 Jack Ups / 1 Tug 3,271 Petrobras / Maersk / Ensco / Diamond / Transocean /

• Fred. Olsen / Sinvest / Awilco / Scorpion / Jindal /

Atwood / Seadrill / SBM / Prosafe / Emas Offshore / Golar / Hadi Hammam / Gulfmark / Whitesea / Lukoil / Keppel Smit 1 Semi / 2 Semi Upgrades / 5 Jack Ups / 3 Jack Up Upgrades/ Repairs / 2 FPSO Conversions / 1 FPSO Outfitting / 1 Sludge Vessel / 4 AHTS / 3 Tugs / Barges & Pipe Racks / 2 CALM Buoys / 2 Accommodation Platforms Petrobras / Noble / Transocean / Maersk / Seatankers / GDI / Scorpion / Diamond / Awilco / Mexico Drilling/ Frontline / SBM / Sevan / City of New York / Hadi Hammam / Gulfmark / Seaways / Keppel Smit / Agip KCO / Pemex For delivery in 2 0 0 8 3 Semis / 3 Semi Upgrades / 11 Jack Ups / 5 FPSO Conversions / 1 FSRU Conversion / 10 AHTS / 2 Ice Breakers / 1 Tug / 1 Derrick Barge Upgrade 3,054 Maersk / Ensco / Floatel / Skeie / Keppel Smit For delivery in 2 0 0 9 6 Semis / 7 Jack Ups / 1 FSO / 3 AHTS / 1 Heavy Lift Vessel / 2 Tugs 4,289 Maersk / Ensco / GSF / QGP / Seadrill / Sinvest / Awilco / Mercator / Great Eastern / Petrovietnam / Lukoil / Whitesea / Seaways / MPU Offshore / Keppel Smit

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Property

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S$ m 1 H 2 0 0 6 % Change Revenue 4 5 7 8 5 EBI TDA 1 4 4 2 4 Operating Profit 1 3 7 2 6 Profit Before Tax 1 3 8 PATMI 5 5

Financial Highlights – Property

1 H 2 0 0 7 8 4 7 1 7 9 1 7 2 2 0 3 9 4 4 7 7 1

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S$ m 2 Q 2 0 0 6 % Change Revenue 3 0 4 7 4 EBI TDA 9 7 1 2 Operating Profit 9 4 1 2 Profit Before Tax 8 8 PATMI 3 3 2 Q 2 0 0 7 5 2 9 1 0 9 1 0 5 1 1 2 5 6 2 7 7 0

Financial Highlights – Property

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I nfrastructure

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S$ m 1 H 2 0 0 6 % Change Revenue 2 8 0 2 4 EBI TDA ( 1 1 ) NM Operating Profit ( 3 6 ) NM Profit Before Tax ( 1 7 ) PATMI ( 2 5 )

Financial Highlights – I nfrastructure

1 H 2 0 0 7 3 4 7 1 7 3 2 3 1 4 NM NM

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S$ m 2 Q 2 0 0 6 % Change Revenue 1 2 9 4 3 EBI TDA ( 1 5 ) NM Operating Profit ( 2 8 ) ( 9 6 ) Profit Before Tax ( 1 7 ) PATMI ( 2 2 )

Financial Highlights – I nfrastructure

2 Q 2 0 0 7 1 8 4 8 ( 1 ) 1 0 5 NM NM

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I nvestm ents

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S$ m 1 H 2 0 0 6 % Change Revenue 4 1 ( 2 9 ) EBI TDA 3 7 ( 7 3 ) Operating Profit 3 6 ( 7 2 ) Profit Before Tax 2 0 3 PATMI 1 6 2

Financial Highlights – I nvestm ents

1 H 2 0 0 7 2 9 1 0 1 0 1 5 2 1 1 9 ( 2 5 ) ( 2 7 )

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S$ m 2 Q 2 0 0 6 % Change Revenue 1 7 6 EBI TDA 1 NM Operating Profit

• NM

Profit Before Tax 1 2 1 PATMI 9 0

Financial Highlights – I nvestm ents

2 Q 2 0 0 7 1 8 ( 3 ) ( 3 ) 8 2 6 5 ( 3 2 ) ( 2 8 )

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This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory changes. The forward-looking statements reflect the current views of Management on future trends and developments.