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

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

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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

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1Q 2007 Results Announcement

26 April, 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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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

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Grow ing Beyond – Markets & Custom ers

Middle East Vietnam China

  • Well-established Keppel brand name
  • KLL to embark on another 2 projects in HCMC
  • KOM’s growing partnership with PetroVietnam
  • SPC holds interests in oil & gas acreages
  • KIE securing more waste & water treatment contracts
  • KLL seeking to expand into m ore cities
  • Make further inroads: KOM to develop new shipyard with

NAKILAT

  • KIE begins construction of S$1.7b contract
  • Pursuing other opportunities

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Building Long Term Sustainable Grow th

Global opportunities

Extending global footprint Leveraging m arket know ledge Building on grow th platform s

Broad-based earnings

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Group Financial Highlights

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Financial Achievem ents in 1 Q’0 7

PATMI EPS Annualised ROE EVA Free cash flow Net gearing 48% to S$252m 48% to 31.9cts from 19.1% to 19.2% S$85m to S$160m 16% to S$149m from 0.24x to 0.20x

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Financial Highlights

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

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

  • ( 5 4 )

Total 2 ,0 2 8 1 0 0 3 1

Revenue by Segm ents

1 Q 2 0 0 6 % 1 ,2 1 6 7 9 1 5 3 1 0 1 5 1 1 0 2 4 1 1 ,5 4 4 1 0 0

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

  • 1 3

4 NM I nvestm ents 8 2 3 2 7 0 1 9 ( 1 5 ) Total 2 5 5 1 0 0 3 6 0 1 0 0 4 1

Pretax Profits by Segm ents

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

PATMI by Segm ents

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

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

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

7 5 1 9 5 .4

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

2 5 2 3 1 .9

14 ( 3 0 0 ) ( 1 0 0 ) 1 0 0 3 0 0

Continued EVA Grow th

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

’0 2 ’0 3 ’0 4

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

S$ m ’0 5

+ $ 1 6 4 m

3 5

’0 6

4 2 3

+ $ 2 2 4 m

1 Q’0 7

1 Q: 7 5

1 6 0

+ $ 8 5 m

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Healthy Free Cash Flow

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

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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 Q'0 7

A Modest Quarter

3 .1 2 .2 6 .5 S$ b 7 .3 0 .6

Secured over S$ 9 0 0 m orders in April

4 Q: 0 .3 4 Q: 1 .2 3 Q: 1 .4 2 Q: 1 .5 1 Q: 3 .2 3 Q: 1 .8 2 Q: 2 .1 1 Q: 2 .3

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Earnings Visibility Extends Further I nto 2 0 1 0

9 .9 1 0 .5 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

S$ b

Net Orderbook

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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

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Tapping Deepw ater’s Grow ing Potential

FPSO TLP & SPAR Production sem isubm ersible Pursuing prospects through FloaTEC

W ater Depth

1 0 ,0 0 0 ft

7 5 % of discovered deepw ater resources still undeveloped

Undertaking Petrobras’ P5 1 & P5 2 > 1 / 3 of w orld’s conversions

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JV with Qatar Gas

Qatar holds world’s 2nd 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

New Strategic Foothold

Near m arket, near custom er strategy

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Oil & Gas

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Refining Margins I m proved

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Seeking to increase stake in

Cambodia (Block B)

Extended footprint outside

Southeast Asia Acquired 35% interest (Block T06-3) in Australia Bass Basin

Augm enting Upstream Portfolio

Sam pang PSC Kakap PSC Blocks 1 0 2 & 1 0 6 , & Block 1 0 1 -1 0 0 / 0 4 Block B Block T0 6 -3

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Property

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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%

Robust Luxury Hom e Market

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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

Redefining W aterfront Living

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Prim e Office Market Tightens Further

Average new supply 0 .6 m sf p.a.

till 2 0 0 9

Tight supply in Core CBD

Grade A space fully leased Latest Raffles Place rent signed at $13 psf

> 1 m sf CBD area slated for

redevelopm ent

Removals exceed new supply in ’07

0 .0 0 .4 0 .8 1 .2 1 .6 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

S’pore New Office Supply

1 0 -1 5 yr average annual take-up

m sf

Fully leased Pre- com m itted

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MBFC ( Ph. 1 ) 1.60m sf NLA under development Standard Chartered Bank leased 0.5m sf

Significant Prim e Office Player

Net attributable office space to double to over 2 .2 m sf by 2 0 1 0 -1 1

MBFC ( Ph. 2 ) Early option exercise secured significant savings 2.09m sf GFA (including residential) One Raffles Quay 1.34m sf NLA Ocean Building &

Ocean Tow er

0.67m sf existing NLA Equity Plaza 0.26m sf NLA

+

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K-REI T Asia – Another Grow th Platform

Prudential

Tow er*

0.11m sf NLA 100% committed

  • ccupancy

Keppel Tow ers &

GE Tow er

0.43m sf NLA 99% committed

  • ccupancy

Bugis Junction

Tow er

0.25m sf NLA 100% committed

  • ccupancy

Actively seeking potential value-adding acquisitions

* Approximately 44.4% of strata area of building 32

Country Feature : Vietnam

Grow ing Middle Class

Average income of

US$1.9K in HCMC Entry I nto W TO

Record 2006 FDI of

US$10.2b (~ 1.8x 2005 US$5.8b)

Expecting 2007 FDI of

US$20b Urbanisation Trends

Urbanisation rate at

27% (1999: 19% ) Strong GDP Grow th

8.2% in 2006 Target 8.5% in 2007

I ncreasing Dem and For Hom e Ow nership

Favourable Dem ographic

Half of Vietnam’s

population < 25 yrs old Returning Viet Kieus

Rich overseas

Vietnamese as important investors

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Strong Foothold I n Vietnam

Pioneer property developer w ith strong brand nam e & expertise

Villa Riviera

Scenic frontage

along Saigon River

Fully sold 101

waterfront villas

Saigon Sports City ( Ph. 1 : 7 8 2 units)

“Healthy lifestyle”

residential township

Launching 100 units

in 2007

The Estella

55% JV to develop 4.8-ha HCMC prime site 1,500-1,600 quality apartments Launch in 2008

6 0 % JV W ith An Phu Corp

500 premier waterfront residences Just 4km from HCMC’s CBD Launch in 2008

W ell placed to pursue m ore projects

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I nfrastructure

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NEW ater Plant – W orld’s 2 nd largest

Plant operational in Mar’07 on schedule

I nfra Projects Progressing W ell

Cogen Plant

Commenced operation in Apr’07

Pow er Barges

Commenced operation in Dec’06

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S$1.7b Qatar contract Singapore’s 5th Incineration Plant, COD in 2Q’09 Secured several contracts in China Pursuing more projects in the Middle East, Europe & China

Scope For More Projects Globally

Grow th strategies

Further build upon track record R&D to further enhance technological

capabilities

Dem and drivers

Gov’ts step up environmental emphasis Europe gets tough on landfill directive China expresses increasing concern on waste management Global water scarcity spurs water

recycling

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Outlook A Strong Start To Another Good Year

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Thank You Q&A

Keppel Corporation 1 Q 2 0 0 7 Results

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Additional I nfo

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Keppel Corporation

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

8 1 % of total revenue cam e from overseas custom ers

Revenue by Custom ers

9 4 4 2 3 4 2 9 8 1

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

EBI TDA by Segm ents

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

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Capital/ Gearing/ ROE

S$ m Shareholders' Funds Capital Em ployed Net Debt Net Gearing ROE 3 1 Mar 2 0 0 7 4 ,5 0 7 5 ,9 5 5 1 ,1 7 5 0 .2 0 x 1 9 .2 % * 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 Q 2 0 0 6 % Change Revenue 1 ,2 1 6 2 6 EBI TDA 1 2 0 4 7 Operating Profit 1 0 5 5 0 Profit Before Tax 1 2 3 PATMI 7 9

Financial Highlights – Offshore & Marine

1 Q 2 0 0 7 1 ,5 3 6 1 7 6 1 5 8 1 8 6 1 5 1 5 1 9 1

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Offshore & Marine Review

  • S$0.6b contracts secured in 1Q 2007:

1 JU, 3 JU upgrades/ repairs

  • Major contract completions in 1Q 2007:

2 JUs, 1 JU upgrade/ repair, 1 semi upgrade, 1 FPSO outfitting, 1 FPSO conversion, 1 AHTS, 1 Tug

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Offshore & Marine Orderbook

Clients

TOTAL as at 3 1 March 2 0 0 7

9 ,9 3 1

Balance Order S$ m For delivery in 2 0 0 7 936 For delivery in 2 0 0 9 / 2 0 1 0 6 Semis / 8 Jack Ups / 1 FSO / 2 AHTS / 1 Heavy Lift Vessel 5,621 Petrobras / Maersk / Ensco / Diamond / Sinvest / Awilco / Scorpion / Jindal / Atwood / SeaDrill / SBM / Golar / Hadi Hammam / Gulfmark / Whitesea / Lukoil / Keppel Smit 1 Semi / 3 Semi Upgrades/ Repairs / 8 Jack Ups / 4 Jack Up Upgrades/ Repairs / 3 FPSO Conversions / 1 FPSO Hull Conversion / 1 Sludge Vessel / 5 AHTS / 1 Tug / Barges & Pipe Racks / 1 Pipelayer Conversion / 2 CALM Buoys / 2 Accommodation Platforms Petrobras / Fred Olsen / Transocean / Diamond / Sinvest / SeaDrill / Maersk / Seatankers / GDI / Scorpion / Pride / Noble / Prosafe / SBM / Frontline / City of New York / Hadi Hammam / Gulfmark / Lukoil / Seaways / Keppel Smit / Agip KCO / Allseas / Pemex For delivery in 2 0 0 8 3 Semis / 2 Semi Upgrades / 11 Jack Ups / 2 FPSO Conversions / 1 FSRU Conversion / 10 AHTS / 2 Ice Breakers / 1 Tug 3,374 Maersk / Ensco / GSF / QGP / Sinvest / Awilco / Mercator / Great Eastern / Skeie / Lukoil / Whitesea / MPU Offshore

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Property

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Financial Highlights - Property

NB: Property segment includes all property related businesses of KCL

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

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I nfrastructure

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

  • PATMI

( 3 )

Financial Highlights – I nfrastructure

8 1 2 5 NM NM NM 1 6 3 9 4 1 3 9

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I nvestm ents

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Financial Highlights - I nvestm ents

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

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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.