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

1

1

1Q 2008 Results Announcement

24 April, 2008

2

Scope of Briefing

Address by Executive Chairman Group Financial Highlights Business Review & Outlook

2

3

Address By Executive Chairm an

4

A Tough Year Ahead

• 1Q’08 PATMI and EPS up 4% over 1Q’07
• Subprime mortgage problems – adverse

impact on rest of the economy

Steadfast in executing grow th strategies

3

5

Sound Platform s For Sustainable Grow th

Offshore & Marine

• Robust orderbook – deliveries

into 2011

• E&P spending remains robust

Oil & Gas

• Strong global demand for refined

products

• Search for upstream investments

continues

Property

• Growing regional footprint
• Demand underpinned by

favourable demographic trends

I nfrastructure

• On-going projects on schedule
• Healthy demand from regional

economies

6

Underlying Fundam entals Rem ain I ntact Despite More Challenging Environm ent

4

7

Group Financial Highlights

8

1 Q’0 8 Financial Perform ance

PATMI EPS Annualised ROE EVA Free cash flow Net gearing 4% to S$262m 4% to 16.5cts from 21.8% to 19.9% S$17m to S$177m to -S$143m from 0.09x to 0.11x

5

9

Financial Highlights

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

10

S$ m 1 Q 2 0 0 8 % % Change Offshore & Marine 1 ,4 0 0 6 3 ( 9 ) Property 3 0 0 1 4 ( 6 ) I nfrastructure 5 0 5 2 3 2 1 0 I nvestm ents 6

• ( 4 5 )

Total 2 ,2 1 1 1 0 0 9

Revenue by Segm ents

1 Q 2 0 0 7 % 1 0 0 7 6 1 6 8

• 1 ,5 3 6

3 1 8 1 6 3 1 1 2 ,0 2 8

6

11

S$ m 1 Q 2 0 0 7 % 1 Q 2 0 0 8 % % Change Offshore & Marine 1 7 0 4 6 ( 9 ) Property 1 0 5 2 9 1 5 I nfrastructure 1 6 4 2 3 I nvestm ents 7 5 2 1 7 Total 3 6 6 1 0 0 2

Pretax Profits by Segm ents

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

12

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

PATMI by Segm ents

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

7

13 1 9 2 2 3 7 2 7 7 3 6 6 2 0 2 2 8 7 3 8 5 2 2 8 2 5 2 2 6 2 2 5 8 2 4 8 2 6 8 '0 3 '0 4 '0 5 '0 6 '0 7 '0 8 1 2 .4 1 5 .3 1 7 .7 2 3 .2 1 3 .1 1 8 .4 2 4 .5 1 4 .6 1 6 .5 1 5 .9 1 6 .4 1 5 .6 1 7 .0 '03 '04 '05 '06 '07 '08

Consistent Earnings Grow th

1 H 2 H

PATMI ( S$ m ) EPS ( Cents)

3 9 4 2 5 .5 4 6 5 2 9 .9 5 6 4 3 6 .1 7 5 1 4 7 .7

1 Q: 1 Q:

1 ,0 2 6 6 4 .9

2 Q: 2 Q: 3 Q: 3 Q: 4 Q: 4 Q: 1 Q: 1 Q:

2 6 2 1 6 .5

14

Continued EVA Grow th

’0 2 ’0 3 ’0 4 S$ m ’0 5 ’0 6 ’0 7 670) 470) 270) ( 70) 130 330 530

+ $ 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

6 0 4

+ $ 1 8 1 m

( 6 6 5 )

+ $ 3 7 0 m

’0 1 1 Q’0 8

1 7 7 1 Q: 1 6 0

+ $ 1 7 m

8

15

Free Cash Flow

1Q 2008 S$m Operating profit 262 Depreciation & other non-cash items 39 Working capital changes (382) Net cash used in operating activities ( 1 2 9 ) Net cash used in investing activities ( 1 4 ) Free Cash Flow ( 1 4 3 ) Investments & capex (108) Divestments & dividend income 94 Interest & tax paid (48) 301

16

Business Review & Outlook

9

17

Offshore & Marine

18

A Modest Start

S$664m worth of contracts secured in 1Q’08

(1Q’07: S$621m)

S$11.8b net orderbook at end-Mar’08 –

deliveries into 2011

Healthy enquiries across all segm ents

10

19

Sustaining Our Delivery Focus

• Deliveries in 1Q’08
• 3 jackups
• 1 jackup upgrade
• 2 FPSO/ FSO conversions
• 3 AHTS
• 1 tug
• Expect to deliver projects as per contract

20

Orderbook I s Robust

New build JU and Sem i Contracts Secured ( 2 0 0 7 - 1 Q’0 8 ) - S$ 6 b 2 1 % 3 8 % 1 3 % 3 % 5 % 2 0 %

U.S. Drillers NOCs Skeie Floatel Seadrill Perforadora Central

11

21

Outlook Rem ains Favourable

Healthy demand for rigs with dayrates and utilisation

at high levels

Deepwater market remains strong

• > 130 production floater orders forecasted for 2008-13*
• Semi newbuilds secure long-term contracts at attractive rates

Demand for shiprepair and conversions continues to

be strong

* Source: IMA

22

Oil & Gas

12

23 2 4 6 8 10 12 1Q'05 1Q'06 1Q'07 1Q'08 US$/ bbl

* Source: Merrill Lynch

Singapore GRM ( Com plex) *

Tight Capacity Expected To Sustain Margins

24

Property

13

25

Continuing To Grow Our Regional Footprint

• Long-term housing demand underpinned by favourable

demographics and rising incomes

• Two core pillars of our regional thrust
• Townships targeted at large growing middle-income population
• Luxury integrated developments offer unique lifestyle propositions
• Secured 8 projects in Vietnam in 2007
• Launched The Estella in March 2008 – 165 units sold
• Regional launches in 2008 – China, Vietnam, India, Middle East

26

Creating Lifestyle Propositions

Reflections Reflections ( Ph.1 ( Ph.1 – – 6 2 0 units sold) 6 2 0 units sold) Caribbean Caribbean ( Sold 1 0 0 % launched units) ( Sold 1 0 0 % launched units) Landm ark cable Landm ark cable-

• stayed bridge

stayed bridge 1 7 0 1 7 0 -

• berth

berth w orld w orld-

• class m arina

class m arina

KEPPEL BAY ( 3 2 KEPPEL BAY ( 3 2 -

• ha)

ha) Developing w aterfront projects and m arinas regionally

14

27

Office Market Rem ains Firm

• Financial institutions continue to seek space expansion
• Tight prime office supply into 2010

1Q’08 Grade A rentals up 8.7% q-o-q

• Our premium office pipeline

Marina Bay Financial Centre

• > 50% pre-committed with healthy enquiries

Ocean Financial Centre

• 850,000 sf NLA

28

I nfrastructure

15

29

Making Progress I n I nfrastructure

• Secured S$3b long-term natural gas supply

contract to ExxonMobil commencing 2009

• Awarded S$75m turnkey contract for WTE plant in

Sweden; 22% stake provides recurring income

30

Outlook

Continuing to Target Grow th Opportunities Am idst Challenging Global Conditions

16

31

Thank You Q&A

Keppel Corporation 1 Q 2 0 0 8 Results

32

Additional I nfo

17

33

Keppel Corporation

34

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

6 7 % of total revenue cam e from overseas custom ers

Revenue by Custom ers

9 0 2 6 2 7 1 9 6 7

18

35

S$ m % 1 Q 2 0 0 8 % % Change Offshore & Marine 5 4 1 6 0 Property 3 5 1 0 2 I nfrastructure 2 1 I nvestm ents 1 2 Total 2 9 5 1 0 0 1 0

EBI TDA by Segm ents

7 4 ( 9 ) 4 6 1 3 3 ( 8 ) 1 Q 2 0 0 7 6 6 1 7 6 2 6 7 0 9 1 3 2 6 8 1 0 0 3 5

36

Capital/ Gearing/ ROE

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

* Annualised ROE

19

37

Offshore & Marine

38

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

Financial Highlights – Offshore & Marine

1 Q 2 0 0 8 1 ,4 0 0 1 6 0 1 3 7 1 7 0 1 3 1 ( 9 ) ( 1 3 ) 1 ,5 3 6 1 7 6 1 5 8 1 8 6 1 5 1

20

39

Offshore & Marine Review

• S$664m contracts secured in 1Q 2008:

1 JU, 1 Drillship Outfitting, 2 FPSO conversions, 2 Barges

• Major contract completions in 1Q 2008:

3 JUs, 1 JU upgrade/ repair, 1 FPSO conversion, 1 FSO conversion, 3 AHTS, 1 Tug

40

Offshore & Marine Orderbook

Clients

TOTAL as at 3 1 Mar 2 0 0 8

1 1 ,8 3 3

Balance Order S$ m For delivery in 2 0 1 0 5 Semis / 6 Jack Ups / 1 Derrick Pipelay Vessel / 3 AHTS / 1 PSV / 1 Drillship Outfitting / 1 Tug 6,120 Petrobras / Maersk / Ensco / Diamond / Transocean /

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

Seadrill / SBM / Prosafe / Emas Offshore / Sevan / Golar / Hadi Hammam / Gulfmark / Whitesea / Lukoil / Keppel Smit / City of New York / Saipem / Batangas Bay Carriers / Agip KCO / BUE Marine For delivery in 2 0 0 8 3 Semis / 4 Semi Upgrades / 11 Jack Ups / 6 FPSO Conversions / 1 FPSO Outfitting / 1 FSRU Conversion / 8 AHTS / 2 Ice Breakers / 2 Tugs / 1 Derrick Barge Upgrade / 1 Sludge Vessel / 2 CALM Buoys / 1 Semi Heavy Lift Upgrade / 1 Tanker Barge / Barges & Pipe Racks / 2 Barges 1,514 Maersk / Ensco / Floatel / Petrobras / Skeie / Rowan / Global Offshore / Hadi Hammam / Smit Int’l / Greatship / Frontier Drilling / Keppel Smit For delivery in 2 0 0 9 6 Semis / 9 Jack Ups / 2 FPSO Conversions / 1 FSO / 4 AHTS / 3 PSVs / 1 Heavy Lift Vessel / 2 Ice Class Standby / Rescue Vessels / 1 Drillship Outfitting / 2 Tugs 3,989 Maersk / Ensco / GSF / QGP / Seadrill / Sinvest / Awilco / Mercator / Great Eastern / Petrovietnam / Perforadora Central / BW Offshore / Lukoil / Whitesea / Seaways / Hadi Hammam / Greatship / MPU Offshore / Frontier Drilling / Keppel Smit For delivery in 2 0 1 1 1 Jack Up / 6 Tugs 210 Rowan / Keppel Smit

21

41

Property

42

Financial Highlights - Property

NB: Property segment includes all property related businesses of KCL

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

22

43

I nfrastructure

44

S$ m 1 Q 2 0 0 7 1 Q 2 0 0 8 % Change Revenue EBI TDA Operating Profit Profit Before Tax PATMI

Financial Highlights – I nfrastructure

2 1 0 1 3 3 2 2 5 2 3 3 3 5 0 5 2 1 1 3 1 6 1 2 1 6 3 9 4 1 3 9

23

45

I nvestm ents

46

Financial Highlights - I nvestm ents

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

24

47

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.