9 Months 2008 Results Announcement 23 October 2008 1 Scope of Briefing Address by Executive Chairman � Group Financial Highlights � Business Review & Outlook � 2 1
Address By Executive Chairm an 3 Sturdy Perform ance I n Challenging Tim es � Subprime problem snowballed into a financial crisis Major economies experiencing slowdown; � business landscape changing � 3Q’08 PATMI on track – rose 10% to $273m, 9M’08 PATMI up 10% to $834m 4 2
W eathering Uncertainties W ith Prudent & Measured Approach � Robust and well-diversified orderbook of $13b into 2012 Offshore & � Received aggregate 50% payment in respect of all existing contracts Marine � Prudent project selection process � Upstream to partially mitigate weaker refining contribution Oil & Gas � Singapore residential – extracting value from former shipyard site � Office – positive rentals reversions from low base; long-term leases Property pre-committed for MBFC � Regional residential – markets underpinned by fundamentals � Sovereign projects minimise contractual risks I nfrastructure 5 Staying Focused Proactive management � Healthy balance sheet and positive free cashflow � Continue to build up resources and capabilities � to capture opportunities 6 3
Group Financial Highlights 7 9 M Financial Perform ance 10% to S$834m PATMI 9% to 52.4cts EPS from 21.8% to 21.5% Annualised ROE S$27m to S$614m EVA 13% to S$1,462m Free cash flow from 0.09x to 0.03x Net gearing 8 4
Financial Highlights S$ m 9 M 2 0 0 8 % Change 9 M 2 0 0 7 Revenue 8 ,0 7 1 7 ,0 7 3 1 4 EBI TDA 9 4 9 9 8 7 4 Operating Profit 8 4 8 8 7 8 3 Profit Before Tax 1 ,2 0 0 1 ,1 3 5 6 1 0 8 3 4 7 5 8 PATMI 9 5 2 .4 4 7 .9 EPS ( cents) 9 Revenue by Segm ents S$ m % % Change 9 M 2 0 0 8 9 M 2 0 0 7 % Offshore & Marine 5 ,5 8 1 6 9 5 ,0 4 8 7 1 1 1 Property 7 2 2 9 1 ,3 5 0 1 9 ( 4 7 ) I nfrastructure 1 ,7 4 2 2 2 6 3 3 9 1 7 5 ( 3 8 ) I nvestm ents 2 6 - 4 2 1 Total 8 ,0 7 1 1 0 0 7 ,0 7 3 1 0 0 1 4 10 5
PATMI by Segm ents S$ m % Change 9 M 2 0 0 8 % 9 M 2 0 0 7 % 4 8 4 5 8 4 0 9 5 4 Offshore & Marine 1 8 1 1 6 1 4 1 5 9 2 1 Property ( 2 7 ) 4 1 5 1 8 2 I nfrastructure 1 2 8 I nvestm ents 1 9 3 2 3 1 7 2 2 3 1 2 Total 8 3 4 1 0 0 7 5 8 1 0 0 1 0 11 Consistent Earnings Grow th PATMI ( S$ m ) EPS ( Cents) 6 4 .9 1 ,0 2 6 4 Q: 4 Q: 8 3 4 5 2 .4 2 6 8 1 7 .0 7 5 1 4 7 .7 3 Q: 3 Q: 3 Q: 2 7 3 1 7 .1 3 Q: 5 6 4 3 6 .1 2 4 8 1 5 .6 2 4 .5 3 8 5 4 6 5 2 9 .9 2 Q: 3 9 4 2 5 .5 2 Q: 1 8 .4 2 8 7 2 Q: 2 Q: 1 8 .8 2 9 9 1 4 .6 2 2 8 2 5 8 1 6 .4 2 0 2 1 3 .1 1 Q: 3 6 6 2 3 .2 1 Q: 1 Q: 1 Q: 2 7 7 1 7 .7 2 3 7 2 6 2 1 5 .3 1 6 .5 1 9 2 2 5 2 1 2 .4 1 5 .9 '0 3 '0 4 '0 5 '0 6 '0 7 '0 8 '03 '04 '05 '06 '07 '08 1 H 2 H 12 6
Continued EVA Grow th S$ m ’0 1 ’0 5 9 M’0 8 ’0 2 ’0 3 ’0 4 ’0 6 ’0 7 6 1 4 6 0 4 + $ 2 7 m + $ 1 8 1 m 530 4 2 3 + $ 2 2 4 m 9 M: 330 5 8 7 1 9 9 + $ 1 6 4 m 130 3 5 ( 70) + $ 1 6 0 m ( 1 2 5 ) 270) + $ 1 7 0 m ( 2 9 5 ) 470) + $ 3 7 0 m 670) 13 ( 6 6 5 ) ROE Perform ance 21.8% 21.5% 19.1% 16.4% 15.5% 14.1% 13.4% 10.1% 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 9 M'0 8 * 14 * Annualised ROE 7
Healthy Free Cash Flow 9M 2008 S$m Operating profit 848 Depreciation & other non-cash items 114 962 Working capital changes 765 Interest & tax paid (175) Net cash from operating activities 1 ,5 5 2 Investments & capex (391) Dividend income 301 Net cash used in investing activities ( 9 0 ) Free Cash Flow 1 ,4 6 2 Dividends paid ( 1 ,1 9 7 ) 15 Business Review & Outlook 16 8
Offshore & Marine 17 Steady Order Flow � Secured S$1.6b contracts in 3Q’08, taking 9M’08 orders to S$5.2b (9M’07: S$4.4b) • Another 2 semis • 1 FPSO conversion, 1 FSO upgrade • An eco-friendly derrick pipelay vessel � S$13.0b net orderbook at end-Sep’08 – added deliveries into 2012 Secured two conversion contracts worth S$150m in Oct’08 18 9
Buoyant Deepw ater Market S$b Sem is* Orders Secured 4.0 Tight deepwater rig � 3.3 market – high semis 3.0 utilisation at 99% 2.6 2.3 Deepwater finds to � 2.0 prompt new orders 1.3 1.0 Clinched 42% of global � semi newbuilds in 9M’08 0.0 2005 2006 2007 9M'08 Well-positioned to tap opportunities with our global yards 19 * Include semi drilling tenders All 9 M’0 8 Deliveries On Schedule � 11 jackups 2 jackup upgrades/ repairs � 1 semi 4 semi upgrades � � 4 FPSO/ FSO conversions 6 AHTS & 1 tug � � Projects under construction progressing on schedule 20 10
Fundam entals Rem ain I ntact � Ageing global rig fleet poses increasing performance and safety concerns Need to replenish depleting reserves prompts search � for new fields Current oil prices appear above E&P spending � thresholds of big oil companies 21 Oil & Gas 22 11
Refining Margins W eakened I n 3 Q’0 8 2 0 0 8 Singapore GRM ( Com plex) * US$ / bbl 2 0 3Q’08 refining margins � highly volatile 1 5 Global macro-economic � 1 0 turbulence impacts refined products demand 5 0 4 - Ja n 2 5 - Ja n 1 5 - Feb 7 - Mar 2 8 - Mar 1 8 - Apr 9 - May 3 0 - May 2 0 - Jun 1 1 - Jul 1 - Aug 2 2 - Aug 1 2 - Sep 3 - Oct 23 * Source: Merrill Lynch Property 24 12
Landm ark MBFC Draw s Healthy Pre-Com m itm ent Premium office address � Pre-committed 66% of Ph 1 and 55% of Ph 2 ahead � of completion in 2010 and 2012 respectively Over 80% of pre-commitments are long-term leases � of up to 12 years 25 A Sturdy K-REI T Portfolio Broad tenancy mix across industry sectors � � Portfolio 99.4% committed as at end-3Q’08 Rentals largely signed at previously low levels vs � higher current prime rent – portfolio rental reversions expected to be positive Rights issue has strengthened its balance sheet – � aggregate leverage at 27.6% Bank loans due only in 2011; no refinancing needs � next 2 years 26 13
Local Hom es Sales I n 3 Q’0 8 Reflections at Keppel Bay maintains average selling � price of $2,000psf • 14 units sold � Projects strategically-located along New Downtown MRT Line achieve good prices • Park Infinia and The Tresor – 28 units sold at average range of $1,500 – $1,600psf 27 Hom es Dem and I n China & Vietnam Supported By Fundam entals � Young population � Urbanisation trend continues Growing middle-class � Vietnam – Viet Kieus purchase potential � Home ownership aspirations and demographics underpin demand 28 14
I nfrastructure 29 Expanding Green Business Platform s Joint ventures with Tianjin partners targeting Tianjin Eco-City � Environmental infrastructure development, investment and operation • Energy and utilities-related development and O&M • Framework agreement with local Guangdong partner � Select from S$1.2b pipeline of water and solid waste treatment and • management projects 30 15
Sponsor for W orld’s First Green Business Trust Keppel I ntegrated Keppel I ntegrated Engineering Engineering ( Sponsor & Key Strategic I nvestor) ( Sponsor & Key Strategic I nvestor) Keppel I nfrastructure I nfrastructure Keppel I nfrastructure I nfrastructure Senoko W TE Fund Managem ent Senoko W TE Fund Managem ent Business Business Plant Plant ( Trustee-Manager) Trust ( Trustee-Manager) Trust Potential assets Tuas Ulu Pandan for injection: W TE Plant NEW ater Plant Proposed trust to be listed on SGX 31 Our I nfrastructure Platform s Doha North W astew ater Treatm ent and � W ater Reuse Facility W ater EPC: 2008-10 (1 st recognition in 2009); O&M: 10 yrs • Ulu Pandan NEW ater Plant � Operational: 2007 • Tuas W TE Plant � W aste Operational: 2009 • Managem ent Qatar Solid W aste Managem ent Facility � EPC: 2007-09; O&M: 20 yrs • Keppel Merlim au Cogen Plant � Pow er Operational: 2007 • 32 16
Outlook Staying On Course I n A Tougher Environm ent 33 Keppel Corporation 9 M 2 0 0 8 Results Thank You Q&A 34 17
Additional I nfo 35 Keppel Corporation 36 18
Financial Highlights S$ m 3 Q 2 0 0 8 % Change 3 Q 2 0 0 7 Revenue 3 ,2 1 7 2 ,5 9 1 2 4 EBI TDA 3 6 0 1 2 3 2 2 Operating Profit 3 2 5 1 2 2 8 9 Profit Before Tax 4 0 0 3 9 4 2 PATMI 2 7 3 2 4 8 1 0 37 Revenue by Custom ers 9 M 2 0 0 8 Total Overseas Singapore S$ m % % 8 8 Offshore & Marine 5 ,5 8 1 1 2 3 6 6 4 Property 7 2 2 2 8 7 2 I nfrastructure 1 ,7 4 2 2 6 7 4 I nvestm ents 2 6 7 1 2 9 Total 8 ,0 7 1 7 1 % of total revenue cam e from overseas custom ers 38 19
EBI TDA by Segm ents S$ m 9 M 2 0 0 8 % 9 M 2 0 0 7 % % Change Offshore & Marine 6 2 8 6 6 5 1 2 2 3 5 9 2 7 ( 2 1 ) Property 2 5 7 3 2 4 3 7 1 0 0 I nfrastructure 5 2 6 3 2 6 - I nvestm ents 1 2 1 1 2 1 Total 9 4 9 1 0 0 9 8 7 4 1 0 0 39 Capital/ Gearing/ ROE S$ m 3 0 Sep 2 0 0 8 3 1 Dec 2 0 0 7 4 ,6 4 0 5 ,2 0 5 Shareholders' Funds 6 ,6 7 9 7 ,0 3 5 Capital Em ployed Net Debt 1 6 7 6 3 4 Net Gearing 0 .0 3 x 0 .0 9 x ROE 2 1 .5 % * 2 1 .8 % 40 * Annualised ROE 20
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