1

FY 2001 Results Announcement

30 January, 2002

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Agenda

Financial Highlights & SegmentalResults

Strategic Direction

Q&A

1. Financial Highlights &Segmental Results

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Financial Highlights

Attributable profit (before exceptionals) of

S$273m; a 15% increase from 2000

• Ex-Keppel Capital, profit grew by 50%

Attributable profit (including exceptionals) grew

by 171%, enhanced by exceptional gain on sale

of Keppel Capital stake

Divestment of S$2.2b of assets in 2001

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Financial Highlights (Cont’d)

Total payout to shareholders in 2001:

• Capital distribution: S$0.50 per share

• Dividends: S$0.16 per share

Privatisations

• KFEI - completed in Nov 2001

• KHZ and KTT - both announced in Dec 2001

Early redemption of RCCPS of US$421m in Dec2001

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Financial Summary

(S$m) 2001 2000 Change

Turnover 5,882 6,218 (5%)

EBITDA 831 870 (4%)

Pre-Tax Profit (pre-EI) 665 709 (6%)

PATMI (pre-EI) 273 237 15%

PATMI (post EI) 385 142 171%

EPS (pre-EI) $0.36 $0.31 16%

Dividend / share $0.16 $0.13 23%

EI - Exceptional Items

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237273

(50)

0

50

100

150

200

250

300S$m

Offshore & Marine 32 71

Infrastructure 15 45

Property 84 61

Investments (4) 13

Banking 111 84

Total 237 273

2000 2001

A Group in Transformation …

15% growth

PATMI (Pre-Exceptionals)

S$m

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Financial Summary (Cont’d)

(S$m) 2001 2000 Change

Turnover 5,058 4,885 4%

EBITDA 497 430 15%

Pre-Tax Profit (pre-EI) 345 279 24%

PATMI (pre-EI) 189 126 50%

Ex-Keppel Capital

EI - Exceptional Items

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Growth of non-financialservices groups

126

189

(50)

0

50

100

150

200

S$m

Offshore & Marine 32 71

Infrastructure 15 45

Property 84 61

Investments (4) 13

Total 126 189

2000 2001

50% growth

PATMI (Pre-Exceptionals)

S$m

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Financial Summary (Cont’d)

Net Debt 4,525 5,034

Shareholders’ Funds 2,658 2,749

Capital Employed 4,114 7,007

ROE(1) 10.1% 8.5%

ROE(1) (ex-Keppel Land) 13.5% 10.6%

Net Gearing 1.1x 1.0x

(1) Pre-exceptional items

(S$m) 2001 2000

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Offshore 734 344 79 58 71 54

Marine 784 418 69 33 37 8

Network Engineering 220 156 25 21 20 18

Utilities 248 120 85 20 74 13

Property 309 585 166 217 126 180

Investments 2,763 3,262 82 95 17 6

Keppel Capital 824 1,333 334 439 320 430

Total 5,882 6,218 840 883 665 709

Segment Results by Business

Turnover

2001 2000

EBITDA(1)

2001 2000

PBT(1)

2001 2000

S$m

(1) Pre-exceptional items

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Segment Results by Business(Cont’d)

Offshore & Marine 22%

Infrastructure11%

Property65%

Investments2% Offshore &

Marine 31%

Infrastructure27%

Property37%

Investments5%

2000 2001

PBT

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2001 Exceptional Items

S$m

Gain from sale of Keppel Capital 741

Less: Write-down on land bank (244)

Less: Write-down on Keppel T&T (110)

Less: Write-down on KFEI (115)

Less: Write-down on Keppel Corp investments (92)

Less: Imputed interest and exchangeadjustment on RCCPS (68) Net Exceptional Gain 112

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Dividend Policy

Historical payout ratio of about 30-35%

In 2001, Keppel also returned S$0.50/share toshareholders via a capital distribution exercise(S$383m)

10.08.0

12.0 13.0

16.0

1997 1998 1999 2000 2001

32.9

35.4

31.031.7

33.9

1997 1998 1999 2000 2001

Payout Ratio (%)(1)

(1) Dividends as a percentage of pre-exceptional net income

Gross Dividends Announced (cents)

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Divestments in 2001

• 37% stake in Keppel Capital S$1,850m• Stake in toll road & KE Steam in China 101m• 1% stake in OUB 100m• Real estate (of KFEI, KTT) assets 50m• 5.1% stake in Australand 38m• 3 ships owned by KTT 30m• Bayswater 22m• Aljunied Building 12m• Nana Tai Mansion 6m• 50% stake in Apac BizInfo & Call Centre 5m

Total: S$ 2.2b

At least 1 major divestment in 2002

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Major Uses of DivestmentProceeds in 2001

S$m

Capital distribution 383

Redemption of RCCPS 775

Privatisation of KFEI 402

Total: S$1,560

S$2.2b generated from divestments used for:

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Strong Cash Flow in 2002

Planned capex to be funded with internallygenerated cash flows

Divestments will generate further cash flow

Expected uses of funds

• Privatisation of KHZ & KTT

• Power & desalination plants

2. Strategic Direction

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Strategic Milestones

Jul 2001 Aug Sep Oct Nov Dec Jan 2002 Feb Mar Apr

24 Jul 2001

KCLshareholdersgranted KCL

directors generalmandate to

dispose KCHshares

7 Aug 2001

KCLannouncedproposal to

privatize KFEI

16 Aug 2001

Completion ofsale of KCH to

OCBC

5 Oct 2001

EGM to approveprivatization of

KFEI

2 Nov 2001

Completion ofprivatization of KFEI

3 Dec 2001

KCL announcedproposals to

privatize KHZ andKTT

7 Feb 2002

EGM to approveprivatization of KHZ

12 Mar 2002

Scheduled date forcompletion of

privatization of KHZ

Late March /Early April

EGM to approveprivatization of

KTT

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Strategic Objectives

Focus on core competencies

Deliver sustainable earnings growth

Enhance shareholder value

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Financial Targets

15% - 20% CAGR earnings growth through2003

ROE of 12 - 15% by end 2003

EVA improvement year-on-year

Debt / Equity Ratio of 0.6x - 0.8x by end 2003

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Group Outlook for 2002

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Offshore & Marine

Strong Orderbook:-• Offshore orderbook includes

– Newbuildings of 4 jack-up rigs, 1 tension leg platformand 1 semi-submersible for delivery between 2002 and2004.

– 2 conversions / upgrades– 13 upgrades / repairs

• Marine orderbook (excluding shiprepairs)includes– 12 newbuildings for delivery between 2002 and 2003– 2 FPSO conversions

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Offshore & Marine (Cont’d)

Outlook:• Rig utilisation is strong in W. Africa & Asia Pacific, steady in

Middle East / Mediterranean, flat in N. Sea and Latin America,and weak in US Gulf

• FPSO / FSO conversion market remains strong, bolstered byactive offshore production

• Shiprepair activity expected to remain at current level

Privatisation of KHZ• Synergies of S$10m expected from revenue uplift and cost

savings in 2002; more expected in subsequent years

Texas AMFELS(1 yard)

BrazilFELS Setal/BrasFELS(2 yards)

Bulgaria

Norway (1 yard)

CaspianSea

UAE(1 yard)

SingaporeKFELS

(2 yards)KS

(2 yards)KSD

(2 yards)

Philippines(3 yards)

China Engineering

Office

Keppel O&M yards

Other facilities

HoustonCenter

Offshore & Marine: Global Reach

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Offshore & Marine (Cont’d)

Growth Strategy:• Entrench Keppel as a global leader in the O&M

business

• Develop new product designs to meet new marketdemand

• Adopt emerging drilling/production technologies

• Acquire yards in strategic locations to further “nearmarket, near customer” strategy

• Migrate up the value chain:– Grow intellectual capital

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Infrastructure:Network Engineering

Healthy order book (2002/03):• Wireless: S$ 213m• Cable/Broadband: S$ 379m

Revenue in 2002 expected to reach S$500m,more than double that in 2001

Earnings in 2002 will improve significantly

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Infrastructure:Network Engineering

Outlook:

• Increasing market share in Europe through EchoBroadband with the upgrading of cable TV networksin Germany, France, Spain & The Netherlands

• Continued rollout of wireless infrastructure for telcosin S. E. Asia, where we are a leading integrationsolution partner

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Infrastructure:Network Engineering

Global Reach

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Infrastructure:Network Engineering (Cont’d)Growth Strategy:• Capitalise on high growth prospects:

– Outsourcing trend continues– Network upgrading cycle in Asia and Europe

• Focus on growing intellectual capital

– Own proprietary cable / broadband design planning tools

– Acquire proprietary application technology to service Telcos

• Leverage relationships with strategic partners

– Already the preferred partner of top equipment vendors

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Outlook:• Enhance yield on current asset portfolio:

– 190MW power barge project in Brazil

– 60MW power plant in Nicaragua

– 100MW Zunhua power plant in China

• 470MW cogen / desalination plant development onJurong Island

• Incineration plant in China

Infrastructure:Utilities Engineering

Nicaragua(Power plant)

Salvador,Brazil

(Powerbarges)

Singapore(Cogen Plant)

Keppel’s Presence

Utilities: Global Reach

Zunhua, China (Power plant)

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Growth Strategy:

• Participate in Singapore’s utilities market:

– Electricity marketing

– Genco privatisation

• Overseas

– Acquisitions

– New projects

Infrastructure:Utilities Engineering (Cont’d)

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Property

Outlook:• Launch of residential projects

– Singapore– Launches / Re-launches:

» Caribbean at Keppel Bay

» Cluny Hill bungalow plots

» Parc Devon

» Duchess Park

– China– One Park Avenue, Jingan, Shanghai

• Expected progress on divestments of investmentproperty

» Pinnacles @ Wee Nam

» Freesia Woods

» 6 & 22-26 Mar Thoma Rd

SE Asia:Singapore,Malaysia,Thailand,

Philippines,Indonesia,Myanmar,Vietnam

Australia: Sydney

Keppel’s Presence

Property: Global Presence

China:Shanghai, Qingdao,Suzhou, Kunming

Houston

Baku

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Property (Cont’d)

Growth Strategy:• Focus on:

– Property development for sale

– Fund management

• Continue to build on premier brand name

• Participate in attractive growth prospects in Asianemerging markets– China and Vietnam

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Investments

Estimated value of investments, includinginvestment property, approximately S$5b

M1 is expected to continue with strongperformance

Outlook for SPC remains challenging

Committed to disciplined divestment approach

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Strengthened OrganisationalStructure

• Development& FundManagementServices

• Network &UtilitiesEngineeringServices

• Rigbuilding,offshoreconversion, shiprepair &shipbuilding

Kevin WongProperty

C H TongOffshore & Marine

Ng Eng HoT G OngP W Yick

Infrastructure

Lim Chee OnnExecutive Chairman

Choo Chiau BengExecutive Director

Teo Soon HoeGroup Finance Director

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Incentivising Performance

Senior Management remuneration to be linkedto achieving EVA and ROE targets• Implementation of a value-based incentive scheme

by 2H 2002

• Annual EVA audit in addition to accounts audit

Performance-based executive remunerationwith higher variable component• To motivate and reward performance, yet manage

cost structure

• To attract and retain good performers

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Our Roadmap

Focus resources on core businesses

Disciplined investment and divestment management

Revamp reward system - implement ROE and EVAbased performance measures

Optimise capital structure

Effective and timely communication for greatertransparency

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Our ultimate goal is to increaseshareholder value