FY2005 Results February 28, 2006 1 Scope of Presentation • CEO’s Report • Financial Review • Operations Review • Group Priorities & Outlook 2 1
CEO’S REPORT By Tang Kin Fei Group President & CEO SembCorp Industries 3 Strong Performance & Growth • Delivered strong operating earnings growth - Turnover at record-high of $7.4bn, up 25% - PATMI before EI of $278.5m, up 22% - PATMI before EI of $278.5m, up 45% (excl KNI) - PATMI at $303.3m • Healthy balance sheet and cash flow - Net cash position - Interest cover at 12 times - Operating cash flow at $828m • Sustainable growth for the future - Strong orderbook at $8.4bn (excl. long-term contracts) 4 2
Sustainable Earnings & Growth PATMI before EI ($M) 300 278 2005 PATMI 2005 PATMI before EI before EI 228 22% 22% 200 184 161 3- -Year CAGR Year CAGR 3 100 20% 20% 0 2002 2003 2004 2005 5 Strong Returns & Financial Discipline ROE* (%) 14 15 ROE ROE 13 13 14% 14% 11 Interest Cover Interest Cover 10 12x 12x Net Cash Net Cash 5 Position 0 2002 2003 2004 2005 *Before EI 6 3
Delivering Shareholder Returns Total Shareholder Returns (TSR) of 66%* versus STI TSR of 18%* 3.50 3,800 • Paid shareholders dividends of 11.25 cents per share and $1.95 for every share SembCorp Industries ► 3.00 cancelled via capital 3,300 reduction in 2005 • For FY2005, Directors 2.50 recommend a 30% increase 2,800 in gross ordinary dividend to 6.5 cents per share 2.00 Straits Times Index � • Represents gross dividend 2,300 yield of 2.4% (based on 1.50 December 30, 2005 closing share price) 1.00 1,800 Jan-05 Apr-05 Jun-05 Sep-05 Dec-05 *Source: Bloomberg 7 FINANCIAL REVIEW By Lim Joke Mui Group CFO SembCorp Industries 8 4
Group Profit & Loss ($M) FY2005 FY2004 ∆ % (RESTATED) 7,409 5,944 25 Turnover EBITDA 668 1,112 (40) PBT 508 982 (48) PATMI before EI 278 228 22 PATMI before EI (excl KNI) 278 192 45 PATMI 303 391 (23) EPS before EI (cts) 15.7 12.5 26 EPS after EI (cts) 17.1 21.5 (20) Turnover grew 25% and PATMI before EI grew 22% 9 Contribution to Turnover ($M) FY2005 FY2004 ∆ % (RESTATED) Utilities* 3,262 2,909 12 Marine 2,102 1,351 56 Logistics 542 500 9 Enviro 217 200 8 1,096 823 33 E&C Others 185 153 21 Corporate 5 8 (42) Total 7,409 5,944 25 *Note: Utilities (excluding Offshore Engineering) 2,945 2,495 18 Offshore Engineering 317 414 (23) 10 5
Turnover (%) by Businesses Others 3% Enviro 3% Others Enviro 3% 3% E&C 15% E&C 14% Utilities Logistics 44% 7% Logistics Utilities 8% 49% Marine Marine 28% 23% FY2005 FY2004 Total Turnover $7.4bn Total Turnover $5.9bn Utilities & Marine account for 72% of Group Turnover 11 Turnover (%) by Geographical Areas* Others 5% Others 9% Rest of Asia 28% Rest of Asia Singapore 47% 16% Singapore 52% Europe Europe 23% 20% FY2005 FY2004 Total Turnover $7.4bn Total Turnover $5.9bn Overseas businesses contribute 53% of Group turnover 12 *Based on geographical location of customers 6
Contribution to PATMI ($M) FY2005 FY2004 ∆ % (RESTATED) Utilities* 147.1 108.4 36 Marine 73.4 60.3 22 Logistics (excl KNI) 32.7 28.1 16 Enviro 4.7 14.4 (67) E&C 0.8 0.4 100 Others 21.7 19.1 14 Corporate (1.9) (38.3) 95 PATMI before EI (excl KNI) 278.5 192.4 45 KNI - 35.3 NM PATMI (before EI) 278.5 227.7 22 Exceptional Items (EI) 24.8 163.8 (85) PATMI 303.3 391.5 (23) *Note: Utilities (excluding Offshore Engineering) 170.3 152.0 12 Offshore Engineering (23.2) (43.7) 47 Solid PATMI growth for Utilities and Marine 13 Exceptional Items ($M) FY2005 Gain on disposal of associates and other investments 56.1 Write-back of provisions for loans and other recoverables 24.2 Unrealised foreign exchange loss relating to an amount accumulated in connection with the Solitaire arbitration (30.8) Allowance for impairment loss for interests in associates (6.2) 43.4 Less: Tax and Minority Interests (18.5) Net Exceptional Items 24.8 14 7
Group Capex ($M) FY2005 MAJOR EQUITY INVESTMENT ITEMS • Cosco Shipyard Group 47.5 • Conversion of Footwork convertible bonds 7.8 • Sabine Industries 8.6 • Others 19.3 Sub-total 83.2 MAJOR FIXED ASSET ITEMS • Utilities 156.7 • Marine 42.0 • Logistics 18.3 • Others 51.2 Sub-total 268.2 351.4 TOTAL 15 Group Cash Flow ($M) FY2005 FY2004 (RESTATED) CASH FLOW FROM OPERATING ACTIVITIES - Before changes in working capital 597 472 - Changes in working capital 276 56 - Tax paid (45) (34) 828 494 CASH FLOW FROM INVESTING ACTIVITIES - Divestment proceeds and sale of fixed assets 223 1,452 - Acquisitions (including investments) (81) (192) - Acquisitions of fixed assets (366) (227) - Others (including dividends and interest received) 124 178 (100) 1,211 CASH FLOW FROM FINANCING ACTIVITIES - Issue of shares by SCI / subsidiaries 84 53 - Repayment of loans and interest paid / net borrowings (850) (207) - Capital reduction by SCI / subsidiaries (314) 0 - Others (including dividend paid) (512) (80) (1,592) (234) (864) 1,471 NET (OUTFLOW) / INFLOW DURING THE PERIOD 1,231 2,100 CASH AND CASH EQUIVALENTS AT END OF PERIOD FREE CASH FLOW 968 1,974 16 8
Operating Cash Flow ($M) 1000 828 750 530 494 500 337 250 0 2002 2003 2004 2005 Steadily growing operating cash flow 17 Group Borrowings ($M) Dec 31, 2005 Dec 31, 2004 PF Loans 399 513 Long-term 546 471 Short-term 161 922 1,106 1,906 Gross b a Less: Cash and FD (1,231) (2,100) Net Cash (125) (194) Net Cash (excl. PF*) (394) (575) Net Gearing Ratio Net Cash Net Cash * PF: Non-recourse project financing. a Includes the $1.3bn received by SembLog for the disposal of its 20% stake in KNI. b In FY05, $702m was paid to SCI shareholders & SembLog's minority shareholders in the form of special interim dividend and capital reduction. 18 9
Financial Indicators FY2005 FY2004 (RESTATED) BEFORE EI EPS (cts) 15.7 12.5 ROE (%) 14.2 12.8 ROTA (%) 5.5 5.9 AFTER EI EPS (cts) 17.1 21.5 ROE (%) 15.3 21.1 ROTA (%) 6.1 13.5 EVA ($M) 251.0 305.7 Healthy financial ratios 19 Financial Indicators Dec 31, 2005 Dec 31, 2004 (RESTATED) NAV per share (cts) 114 107 NTA per share (cts) 106 99 Net Gearing Net Cash Net Cash Interest Cover (times) 12 15 Maintaining a strong balance sheet 20 10
OPERATIONS REVIEW By Tang Kin Fei Group President & Chief Executive Officer SembCorp Industries 21 Utilities Turnover ($M) PATMI ($M) ROE (%) 3,280.5 ( � 12%) 156.1 ( � 25%) 22.1 • Sustainable and stable earnings from Singapore operations • Robust growth from UK and Vietnam 22 11
Utilities Revenue and PATMI ($M) FY2005 FY2004 ∆ % REVENUE Energy 1,967.7 1,655.5 19 Integrated Utilities 995.3 860.5 16 Offshore Engineering 317.5 414.1 (24) Total Revenue 3,280.5 2,930.1 12 PATMI Energy 80.8 73.6 10 Integrated Utilities 111.6 84.3 32 Offshore Engineering (23.2) (27.4) 16 Corporate & Others (13.1) (5.7) (130) Total PATMI 156.1 124.8 25 23 Energy and Integrated Utilities ($M) REVENUE REVENUE ($M) PATMI PATMI 18% � 22% 22% � 18% � � 2,963.0 3,000 200 192.4 Overseas 2,516.0 23% Overseas 157.9 Overseas 23% 150 2,000 40% Overseas 28% 100 Local Local 77% 1,000 77% Local Local 72% 60% 50 0 0 FY2004 FY2005 FY2004 FY2005 Energy 1,655.5 1,967.7 Energy 73.6 80.8 Integrated Utilities 860.5 995.3 Integrated Utilities 84.3 111.6 TOTAL 2,516.0 2,963.0 TOTAL 157.9 192.4 24 12
Utilities Key Developments • Singapore – Secured long-term utilities and services contracts (average 15 years) worth $68m per annum – Secured $10m per annum worth of natural gas contracts with 13 new industrial customers • UK – Secured new and renewed contracts (1-5 years) worth $611m – Commenced construction of Wilton 10, one of UK’s largest biomass renewable energy projects • Other markets - Strengthened beachhead in Nanjing Chemical Industrial Park 25 Nanjing Chemical Industrial Park Opportunity to replicate our unique integrated utilities Opportunity to replicate our unique integrated utilities model in China model in China Feb 2003: Nanjing SembCorp SUIWU - Integrated wastewater treatment plant - 12,500 tonnes per day - COD achieved July 2005 Nov 2005: NCIP SembCorp Water - Exclusive rights to supply industrial Nanjing water to the Park - 100,000 tonnes per day water treatment facility by 1Q2007 Dec 2005: NCIP SembCorp Utilities Nanjing Chemical Industrial Park Nanjing Chemical Industrial Park - Exclusive provider of third-party – Planned area: 45 sq km integrated utilities and services such – One of the two State-level as steam, service corridors and petrochemical parks in China terminalling within NCIP – Park tenants include Celanese, DSM, BASF-YPC, etc. 26 13
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