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

1Q 2007 Results Announcement 26 April, 2007 1 Scope of Briefing � Address by Executive Chairman � Group Financial Highlights � Business Review & Outlook 2 1

Address By Executive Chairm an 3 A Strong Start To 2 0 0 7 � Sustained strong earnings momentum � PATMI of S$252m, up 48% � Improvement on all KPIs � Robust financials to pursue growth Continuously harnessing synergies across the Group 4 2

Grow ing Beyond – Markets & Custom ers � Make further inroads: KOM to develop new shipyard with Middle NAKILAT � KIE begins construction of S$1.7b contract East Pursuing other opportunities � � Well-established Keppel brand name � KLL to embark on another 2 projects in HCMC Vietnam KOM’s growing partnership with PetroVietnam � � SPC holds interests in oil & gas acreages � KIE securing more waste & water treatment contracts China KLL seeking to expand into m ore cities � 5 Building Long Term Sustainable Grow th Global opportunities Leveraging Extending Building on m arket global footprint grow th platform s know ledge Broad-based earnings 6 3

Group Financial Highlights 7 Financial Achievem ents in 1 Q’0 7 48% to S$252m PATMI 48% to 31.9cts EPS from 19.1% to 19.2% Annualised ROE S$85m to S$160m EVA 16% to S$149m Free cash flow from 0.24x to 0.20x Net gearing 8 4

Financial Highlights S$ m 1 Q 2 0 0 7 1 Q 2 0 0 6 % Change Revenue 2 ,0 2 8 1 ,5 4 4 3 1 .3 EBI TDA 2 6 8 2 0 7 2 9 .5 Operating Profit 2 4 2 1 7 6 3 7 .5 Profit Before Tax 3 6 0 2 5 5 4 1 .2 PATMI 2 5 2 1 7 0 4 8 .2 EPS ( cents) 3 1 .9 2 1 .6 4 7 .7 9 Revenue by Segm ents S$ m % % Change 1 Q 2 0 0 7 1 Q 2 0 0 6 % Offshore & Marine 1 ,5 3 6 7 6 1 ,2 1 6 7 9 2 6 Property 3 1 8 1 6 1 5 3 1 0 1 0 8 I nfrastructure 1 6 3 8 1 5 1 1 0 8 ( 5 4 ) I nvestm ents 1 1 - 2 4 1 Total 2 ,0 2 8 1 0 0 1 ,5 4 4 1 0 0 3 1 10 5

Pretax Profits by Segm ents S$ m 1 Q 2 0 0 7 % 1 Q 2 0 0 6 % % Change Offshore & Marine 1 8 6 5 2 1 2 3 4 8 5 1 8 2 Property 9 1 2 5 5 0 2 0 I nfrastructure 1 3 4 - - NM I nvestm ents 7 0 1 9 8 2 3 2 ( 1 5 ) Total 3 6 0 1 0 0 2 5 5 1 0 0 4 1 11 PATMI by Segm ents S$ m % Change 1 Q 2 0 0 7 % 1 Q 2 0 0 6 % 1 5 1 6 0 Offshore & Marine 7 9 4 7 9 1 3 8 1 5 2 2 1 3 Property 7 3 9 4 ( 3 ) ( 2 ) I nfrastructure NM I nvestm ents ( 2 5 ) 5 4 2 1 7 2 4 2 Total 2 5 2 1 0 0 1 7 0 1 0 0 4 8 12 6

Consistent Earnings Grow th PATMI ( S$ m ) EPS ( Cents) 9 5 .4 7 5 1 4 Q: 4 Q: 2 3 .3 1 8 4 7 2 .1 5 6 4 4 Q: 5 9 .9 4 Q: 1 8 .7 3 Q: 4 6 5 3 Q: 1 4 6 2 5 .6 2 0 1 5 1 .0 3 9 4 4 6 .3 3 Q: 3 5 6 2 9 .3 3 Q: 2 2 8 1 7 .9 1 4 1 2 6 .1 2 Q: 2 0 2 2 Q: 2 2 .5 3 1 .9 2 5 2 1 7 4 2 4 .9 1 9 6 2 Q: 2 Q: 1 7 .1 1 3 3 1 Q: 1 Q: 3 0 .6 2 3 7 2 5 2 3 1 .9 1 Q: 1 Q: 1 9 2 2 4 .9 1 8 2 2 3 .8 1 Q: 1 Q: 1 7 0 2 1 .6 1 8 .4 1 4 4 '0 2 '0 3 '0 4 '0 5 '0 6 '0 7 '0 2 '0 3 '0 4 '0 5 '0 6 '0 7 1 H 13 2 H Continued EVA Grow th S$ m ’0 2 ’0 3 ’0 4 ’0 6 1 Q’0 7 ’0 5 4 2 3 + $ 2 2 4 m 3 0 0 1 9 9 + $ 8 5 m 1 6 0 + $ 1 6 4 m 1 0 0 3 5 1 Q: 7 5 + $ 1 6 0 m ( 1 0 0 ) ( 1 2 5 ) + $ 1 7 0 m ( 3 0 0 ) ( 2 9 5 ) 14 7

Healthy Free Cash Flow 1Q 2007 S$m Operating profit 242 Depreciation & other non-cash items 16 258 Working capital changes 324 Interest & tax paid (39) Net cash from operating activities 5 4 3 Investments & capex (432) Divestments & dividend income 38 Net cash used in investing activities ( 3 9 4 ) Free Cash Flow 1 4 9 15 Business Review & Outlook 16 8

Offshore & Marine 17 A Modest Quarter S$ b Contracts Secured 7 .3 6 .5 4 Q: 1 .2 4 Q: 0 .3 3 Q: 1 .8 3 Q: 1 .4 2 Q: 1 .5 3 .1 2 Q: 2 .1 2 .2 1 Q: 3 .2 1 Q: 2 .3 0 .6 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 1 Q'0 7 Secured over S$ 9 0 0 m orders in April 18 9

Earnings Visibility Extends Further I nto 2 0 1 0 S$ b Net Orderbook 1 0 .5 9 .9 7 .2 3 .4 1 .9 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 1 Q'0 7 19 Outlook Rem ains Robust Worldwide rig fleet expected to remain tight � � Attractive hydrocarbon prices & depleting global reserves drive E&P Ageing rigs incapable to operate in challenging frontiers � � Healthy enquiries for jackup & semi newbuilds Deepwater floating production to sustain the next wave � � Expect more conversion & shipbuilding projects Actively pursuing a good pipeline of prospects 20 10

Tapping Deepw ater’s Grow ing Potential 1 0 ,0 0 0 ft W ater Depth Production TLP & SPAR FPSO sem isubm ersible Pursuing prospects through FloaTEC > 1 / 3 of w orld’s Undertaking conversions Petrobras’ P5 1 & P5 2 7 5 % of discovered deepw ater resources still undeveloped 21 New Strategic Foothold � JV with Qatar Gas � Qatar holds world’s 2 nd largest natural gas reserves, LNG fleet to be among world’s largest � Keppel to develop & manage 43-ha yard in Ras Laffan, Qatar � Hub for repair & maintenance of LNG carriers, FPSO & FSO conversions; operational in 2010 Near m arket, near custom er strategy 22 11

Oil & Gas 23 Refining Margins I m proved 24 12

Augm enting Upstream Portfolio Blocks 1 0 2 & 1 0 6 , � Seeking to increase stake in & Block 1 0 1 -1 0 0 / 0 4 Block B Cambodia (Block B) � Extended footprint outside Kakap PSC Southeast Asia Sam pang PSC � Acquired 35% interest (Block T06-3) in Australia Bass Basin Block T0 6 -3 25 Property 26 13

Robust Luxury Hom e Market � Ranked most livable Asian city for expatriates � Key global financial & wealth management hub � Asia accounts for 23% of high-net-worth wealth, assets > US$7.6t � Private wealth & expatriates underpin demand � Foreigners & PR bought record 4,980 private homes in ’06, up 39% 27 Redefining W aterfront Living � Reflections at Keppel Bay � Lifestyle hub of 1,129 luxury units; world- class marina amenities � Launched 350 units, ~ 90% sold � Healthy customer mix, 40% foreigners & PR � Achieved highest price of $2,550 psf � Achieved average price of $1,900 psf 28 14

Prim e Office Market Tightens Further S’pore New Office Supply m sf � Average new supply 0 .6 m sf p.a. till 2 0 0 9 1 .6 � Tight supply in Core CBD 1 0 -1 5 yr average annual take-up 1 .2 � Grade A space fully leased � Latest Raffles Place rent signed at $13 Fully leased 0 .8 psf � > 1 m sf CBD area slated for com m itted 0 .4 Pre- redevelopm ent � Removals exceed new supply in ’07 0 .0 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 ORQ MBFC ( Ph. 1) Others 29 Significant Prim e Office Player � One Raffles Quay � MBFC ( Ph. 1 ) � 1.34m sf NLA � 1.60m sf NLA under development � Standard � Ocean Building & Chartered Bank Ocean Tow er + leased 0.5m sf � 0.67m sf existing NLA � MBFC ( Ph. 2 ) � Early option exercise secured � Equity Plaza significant savings � 0.26m sf NLA � 2.09m sf GFA (including residential) Net attributable office space to double to over 2 .2 m sf by 2 0 1 0 -1 1 30 15

K-REI T Asia – Another Grow th Platform � Bugis Junction � Keppel Tow ers & � Prudential GE Tow er Tow er Tow er* � 0.25m sf NLA � 0.43m sf NLA � 0.11m sf NLA � 99% committed � 100% committed � 100% committed occupancy occupancy occupancy Actively seeking potential value-adding acquisitions 31 * Approximately 44.4% of strata area of building Country Feature : Vietnam Strong GDP Grow th Grow ing Middle Class Entry I nto W TO � 8.2% in 2006 � Record 2006 FDI of � Average income of US$10.2b US$1.9K in HCMC � Target 8.5% in 2007 (~ 1.8x 2005 US$5.8b) � Expecting 2007 FDI of US$20b I ncreasing Dem and For Hom e Ow nership Urbanisation Trends Favourable Dem ographic Returning Viet Kieus � Urbanisation rate at � Half of Vietnam’s � Rich overseas 27% (1999: 19% ) population < 25 yrs old Vietnamese as important investors 32 16

Strong Foothold I n Vietnam Pioneer property developer w ith strong brand nam e & expertise Saigon Sports City Villa Riviera ( Ph. 1 : 7 8 2 units) � Scenic frontage � “Healthy lifestyle” along Saigon River residential township � Launching 100 units � Fully sold 101 waterfront villas in 2007 The Estella 6 0 % JV W ith An Phu Corp � 55% JV to develop 4.8-ha HCMC prime site � 500 premier waterfront residences � 1,500-1,600 quality apartments � Just 4km from HCMC’s CBD � Launch in 2008 � Launch in 2008 W ell placed to pursue m ore projects 33 I nfrastructure 34 17

I nfra Projects Progressing W ell Cogen Plant � Commenced operation in Apr’07 NEW ater Plant – W orld’s 2 nd largest � Plant operational in Mar’07 on schedule Pow er Barges � Commenced operation in Dec’06 35 Scope For More Projects Globally Dem and drivers � S$1.7b Qatar contract � Gov’ts step up environmental emphasis � Europe gets tough on landfill directive � China expresses increasing concern on waste � Singapore’s 5 th management Incineration Plant, � Global water scarcity spurs water COD in 2Q’09 recycling � Secured several contracts in China Grow th strategies � Further build upon track record � Pursuing more projects in the � R&D to further enhance technological Middle East, Europe capabilities & China 36 18