Presentation to Investors New York 5-9 May 2016 1 Disclaimer - PowerPoint PPT Presentation

Presentation to Investors New York 5-9 May 2016 1

Disclaimer 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. 2

Solutions for Sustainable Urbanisation Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world’s sustainable urbanisation needs through key businesses in Offshore & Marine, Property, Infrastructure and Investments. 3

Keppel’s Vision 2020 People Financial • Strong succession pipeline • Net profit target • Tapping global talent pool • Sustainable ROE • High employee satisfaction • PE ratio target • Higher recurring income • Institutional quality balance sheet Process Stakeholders • Zero fatalities, zero audit failures • Develop & grow new markets, • Higher productivity products & customers • Strong risk-management to support • Focus approach in CSR enterprise & innovation 4

Harnessing Strengths Core Strengths: Building Strong Verticals + Collaboration: SYNERGY Offshore & Investments Infrastructure Property Marine Engineering Technology & Project & Innovation Management Capital Operating & Management Maintenance Townships Data Centres Gas Value Chain 5

Scaling the Value Chain (moving to the right)  The world is changing; business models must also evolve from asset heavy to asset light and high value adding businesses. An example from the data centre industry: Wholesale Retail Managed Managed Real Estate Development Cloud Colocation Colocation Hosting Services 6

Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation Operation & Divestment Fee-based • Offshore & Marine • Property OWN STABILISE TRUSTS • Infrastructure & & & • Investments OPERATE MONETISE FUNDS • Fund management • Midstream assets • Unlocking value • Operating & maintenance • Commercial properties • Recycling & services • Plants & data centres reinvesting capital for higher returns • Facilities & property management Earnings streams: Operating income Asset mgt fee Operations fee Operations fee Development profit Capital gains Property mgt fee Property mgt fee Facility mgt fee Facility mgt fee Repair/service fee 7

Growing the Asset Management Business Keppel Capital will cull synergies by bringing together the strengths of four asset managers and enlarging the capital base with like-minded co-investors. Fund management Property  Manager of five private equity funds  One of the largest Pan-Asian commercial REITs listed on SGX  AUM* of approx. S$12.1b  AUM of approx. S$8.2b Combined AUM of ~ S$26b Data Centres Infrastructure  Largest Singapore infrastructure trust listed  Asia’s first data centre REIT listed on SGX on SGX  AUM of approx. S$1.1b  AUM of approx. S$4.1b * When fully invested and leveraged. 8

Fortifying Robust Earnings Streams  Strong underlying operations, Net Profit by Income Type underpinned by rightsizing efforts 1,885 and prudent investments in new 470 1,525 capabilities. 515 415 S$m  RIDs to remain a consistent 407 contributor to the bottom line 1,000 603  Focus on growing stable, FY 2014 FY 2015 FY 2015 recurring income for the long term Project-based* Recurring Revaluations, Major Impairments & Divestments * Project-based earnings include income from rig building, specialised shipbuilding, property development and EPC projects. 9

RIDs: Contributing Consistently RIDs have contributed an average of 23% to Keppel’s profits each year. S$m 2,500 2,237 1,946 1,885 2,000 1,846 1,525 1,511 1,500 1,000 515 470 455 434 323 500 284 0 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Net Profit Revaluations, Major Impairments & Divestments (RIDs) 10

Staying Resilient Through Cycles  Restructured Keppel Energy and Keppel Integrated Offshore & Marine Property Infrastructure Investments Group net profit Engineering to form Keppel Infrastructure  Established Keppel Infrastructure Trust (KIT),  Listed Keppel S$m then K-Green Trust DC REIT 2,300  Privatised Keppel Land  Merged KIT with CitySpring   Established Divested Singapore and injected KMC Keppel REIT Petroleum Company 1,800  Consolidated shipyards  Consolidation to form Keppel O&M of asset management businesses under 1,300 Keppel Capital 800 300 (200) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Oil price plunge Oil renaissance SARS Global financial European debt crisis outbreak crisis 11

W e are staying the course on our multi-business strategy, driving collaboration across our verticals for synergy to create and capture higher value from all parts of Keppel. 12

ADDITIONAL SLIDES: FINANCIAL HIGHLIGHTS 13

Key Figures S$m FY15 FY14 % Chg 1Q16 1Q15 % Chg Revenue 10,296 13,283 1,743 2,814 (22) (38) Operating Profit 1,514 2,373 (36) 278 398 (30) Net Profit 1,525 1,885 211 360 (19) (41) EPS 84.0cts 103.8cts (19) 11.6cts 19.8cts (41) EVA 648 1,778 2 122 (64) (98) Free Cash Flow (694) 729 n.m (306) 226 n.m. Annualised ROE 18.8% 12.9% 14.2% Reduction 7.1% Reduction of 460bps of 580bps Net Gearing 0.53x 0.11x 0.56x 0.37x Increase Increase of 0.42x of 0.19x 14

Revenue by Segments S$m FY14 % 1Q15 % FY15 % 1Q16 % Offshore & Marine 6,241 61 8,556 64 818 47 1,927 68 Property 1,926 1,729 13 503 303 11 19 29 Infrastructure 2,058 2,934 390 506 20 22 22 18 Investments 64 78 71 - 1 32 2 3 Total 10,296 100 13,283 100 1,743 100 2,814 100 15

Net Profit by Segments S$m FY14 % 1Q15 % FY15 % 1Q16 % Offshore & Marine 481 32 1,040 55 95 45 203 56 Property 701 46 482 26 100 47 60 17 Infrastructure 207 14 320 17 14 7 22 6 Investments 43 2 75 21 136 8 2 1 Total 1,525 100 1,885 100 211 100 360 100 16

Net Profit & EPS Net profit (S$m) EPS (Cents) 2,237 124.8 1,946 1,885 109.4 619 1,846 103.8 34.5 102.3 1,525 844 726 84.0 685 47.4 346 39.9 38.0 19.3 4Q 4Q 22.3 405 521 3Q 29.1 414 3Q 457 406 22.9 25.3 363 22.8 20.0 2Q 2Q 406 347 397 22.3 384 19.2 21.9 21.6 751 41.9 1Q 1Q 357 19.8 312 1Q 17.6 1Q 339 360 19.8 18.7 211 11.6 17

ROE & Dividend Annual dividend payout stayed at above 40% of net profit over the past 13 years. ROE (%) & Dividend (Cents) Distribution in specie Distribution in specie Distribution in specie ~20.9cts/share ~28.6cts/share ~ 9.5cts/share Plus Plus Plus 29.1% 27.2% 26.4% 25.3% 19.5% 18.8% 45.0 43.0 40.0 14.2% 38.2 48.0 34.6 34.0 18.0 17.0 12.0 14.5 13.6 12.0 10.0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 ROE Interim Dividend Full-Year Dividend 18