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COSCO CORPORATIONCOSCO CORPORATION(SINGAPORE) LTD(SINGAPORE) LTD

FY2003 Full Year ResultsFY2003 Full Year Results

PresentationPresentation

11 February 200411 February 2004

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Outline of Presentation1. Background & Corporate

Restructuring Exercise2. Operations Review3. Financial Review4. Industry Review

Dry Bulk ShippingShip Repair

NantongDalian

5. Prospects

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New Shareholding Structure ofNew Shareholding Structure ofCOSCO Corporation (S) LtdCOSCO Corporation (S) Ltd

China Ocean Shipping (Group) Company (COSCO)

COSCO HK Group(Non-listed)

COSCO Holding (S) Pte Ltd(Non-listed)

SembCorp Marine(Listed – SGX)

COSCO Coporation (S) Ltd(Listed - SGX)

Temasek Holdings Public

100%

53.77%46.23%

3.7% 55.4%

5.1% 35.8%

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1. Background Information

Listed on SGX Mainboard in October 1993.

55.4% owned by COSCO Holdings (Singapore) Pte Ltd, a 100% subsidiary of China Ocean Shipping (Group) Co.

Headed by President Ji Hai Sheng

Issued capital: 898.2m shares

Estimated free float: 35.8%

Market Capitalisation: $800m (@89cts – 6th Feb 2004)

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Cosco Group

COSCO Corporation (S) Ltd is part of China Ocean Shipping Group Company (COSCO Group), one of China’s top 30 largest conglomerates with over 300 subsidiaries and more than 100 representative offices located overseas.

COSCO Group’s core business is in international shipping, shipping agencies, sea and air freight forwarding, terminals and warehousing, inland haulage, finance and insurance.

COSCO Group’s mandate: To build, own and operate shipping and logistics assets that are strategic to China’s international trade.

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Restructuring Milestones 1Restructuring Milestones 1

Divested stakes in 2 property owning subsidiaries to COSCO Holdings (S) Pte Ltd

Dec 2002

Took delivery of MV Cos KnightNov 2002

Increased stake in Coslink (M) Sdn Bhd from 51% to 82.6% .

Apr 2002

Completed acquisition of 50% stake in COSCO NantongShipyard Co., Ltd for US$14.4m.

Feb 2002

Divested two non-core trading companies, COSCO Trading & COSTO Pte Ltd for $2.25m

Jan 2002

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Restructuring Milestones Restructuring Milestones -- 22

Private Placement of 100m Ordinary SharesMay 2003

Entered into conditional agreement to acquire 40%

stake in COSCO Dalian Shipyard Co., Ltd

Apr 2003

Received delivery of MV Cos Lucky, the Group’s 14th

bulk carrier

Apr 2003

Divested Revo Technologies Co. Ltd to COSCO

Holdings (S) Pte Ltd

Feb 2003

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Restructuring Milestones Restructuring Milestones -- 22

Conditional S/P agreement to build 2 x 55,500DWTHandymax from Nantong Cosco KHI Ship Engineering Co., Ltd

Nov 2003

To lease two 74,000DWT Panamax from Cosco Group from 3Q 2005

Dec 2003

Exercised put option to sell 100% of Cosland (SR) Development to Cosco Holdings (S) Pte Ltd

Dec 2003

Renamed as Cosco Corporation (S) LtdNov 2003

Completion of acquisition of COSCO Dalian Shipyard Co., Ltd

Aug 2003

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Results of RestructuringResults of Restructuring

Sharper focus on shipping & ship related activities

Disciplined divestment of remaining non-core assets

Active acquisition of profitable ship repair businesses in China

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2. Operations Review

Core Group Activities

COSCO Corporation (S) LtdCOSCO Corporation (S) Ltd

ShippingShipping Ship Repairing

Ship Repairing

Marine Engineering

Marine Engineering

Shipping Agencies

Shipping Agencies

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Operations ReviewShipping

Fleet of 14 dry bulk carriers in excess of 700,000 dwt :

• 13 owned and 1 joint ventured.BDI rose by 174% in 2003 and 19% in 2004 to date.

• Leased on 1+1 year duration.All 14 charter contracts will be renewed in 2004 at

higher freight rates.

• Average age of fleet: 11 years.

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Operations ReviewM V Cos Knight

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Operations ReviewShip Repair

Contributions from COSCO Nantong & Dalian shipyards resulted in the 273% growth in associate income to $17.6 million in FY 2003

In FY2003, COSCO shipyards accounted for 13.8% of total ship repair in China.

Over 90% of ship repair customers are foreign registered ship owners.

Acquisition of Cosco Dalian was completed in August 2003

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Location of Cosco ShipyardsLocation of Cosco Shipyards

Tianjin

Dalian

Nantong

Shanghai

Xiamen

Guangzhou

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Shipyard Facilities of Nantong & Dalian

1 (80,000 dwt)NilDry dock

62Repair berths

2 (180,000 & 80,000 dwt)

2 (150,000 &80,000 dwt)Floating docks

350,000 m2210,000 m2Land area

1.6 km1.1 kmCoastline

COSCO Dalian

COSCO NantongOperating Facilities

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Shipyard Facilities of Dalian

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180,000 180,000 DWT Floating DockDWT Floating Dock

Shipyard Facilities of Dalian

880,000 DWT Floating Dock0,000 DWT Floating Dock

Dry Dock

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Shipyard Facilities of Nantong

80,000 DWT Floating Dock

150,000 DWT Floating Dock

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Completed Jobs - Nantong

Conversion of Container Vessel

Oil Rig

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Completed Jobs - Dalian

BargeLength – 125mTonnage – 15,500 DWT

Dry Dock Caisson

Conversion of bulk carrier

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Work In Progress - Dalian

Oil PlatformWill be completed in April 2004

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Ship Repair Cost Ranking

170/180USA110/115Baltic/Russia150/160Scandinavia140/150North Europe110/115Balkans/Turkey125/130Mediterranean110/115South Africa100/105Middle East

250Japan60/75Indonesia50/65The PRC

105/110South Korea100Singapore%Country

Source : Marine Log Magazine Website

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China’s Ship Repair Market

Source: China Ship Industry Association Jan 2004

20.0620.6522.9525.8526.5930.1041.2949.38 67.9171.19

Year 2003 USD million

79106548231

Year 2002Ranking

COSCO (Guangzhou) Shipyard Co., LtdHuarun Dadong Dockyard CoShanghai ShipyardGuangzhou Wenchong Shipyard Co., LtdBeihai ShipyardChina Shipping ShipyardShanhaiguang ShipyardChengxi ShipyardCOSCO (Dalian) Shipyard Co., LtdCOSCO (Nantong) Shipyard Co., Ltd

Top 10 Companies

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Operations ReviewShipping Agencies

COSCO Corporation (Singapore) Ltd

SINGAPORE70% owned Costar

Shipping Pte Ltd

MALAYSIA82.6% owned Coslink (M)

Sdn Bhd

Provides agency services for full container and break-bulk liner services in both Singapore and Malaysia.

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Operations ReviewMarine Engineering

COSCO Marine Engineering Singapore provides 24-hour marine engineering and ship repair services in Singapore.

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3. Financial Review3. Financial ReviewFY2003FY2003

-29%15.210.8Finance costs

363%6.530.1Profit Before Tax

30%27.435.6Gross Profit

523%3.924.3Net Profit

273%4.717.6Associates

36%17.523.8Operating Profit

-10%102.491.9Turnover

% +/-FY2002FY2003($m)

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Financial Review – FY2003

Restructuring-related disposal of property companies resulted in decline in group turnover.

Full year contribution from 50% Cosco (Nantong) and 5-month from 40% Cosco (Dalian) = 273% jump in associates to $17.6m.

Benefit from restructuring: net profit +523% to record $24.3m. Reward to shareholders: higher dividend +42.8% and 1-for-5 bonus share issue

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Balance Sheet HighlightsBalance Sheet Highlights

0.9x2.7xInterest cover

28.7cts29.8ctsNTA / share

1.29x0.51xNet Gearing

441.3454.5Fixed Assets

32.486.1Cash

274.1226.2Bank Borrowings

186.9273.9Shareholders Funds

Dec 2002Dec 2003

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Balance Sheet ReviewBalance Sheet Review

Good, steady cash flow from shippingHigh interest cover

Bank borrowings reduced by:• Sale of non-core properties• Share placement

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4. Industry ReviewDry Bulk Shipping

90% of total cargo transported worldwide is shipped by sea.

Baltic Freight Index • launched in 1985, • it is a composite average of the Handymax,

Panamax and Capesize dry indices.

Baltic Dry Index (BDI) • rose 174% in 2003 & 18% to 6 Feb 2004

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Industry Review

Ship RepairGlobal ship repair industry has been buoyant since 2001, with yards reporting strong demand and modest price increases.*

Strong demand due to:• Ageing shipping fleet profiles;• More demanding class and other regulatory requirements;• Absorption of repair yards into the conversion sector;• Lack of new ship repair capacity.

* According to London based Drewy Shipping Consultants

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Industry Review

Ship Repair

COSCO NantongRanked No. ONE in earning of foreign vessels repairs revenue

COSCO DalianRanked No. Two in earning of foreign vessels repairs revenue

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Types of Ships

Capesize

Panamax

Handysize / Handymax

80,000+ dwt

50 - 79,999 dwt

10 - 49,999 dwt

Size (deadweight

tonnes)

565

1,215

3,753

Number in world fleet

10.2%

22.0%

67.8%

% of world fleet (by vessel)

Iron ore and coal

Iron ore, coal, grain

Variety of Goods

Types of cargo

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Baltic Dry Index (from 2001)

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Bulk Carrier Fleet Deliveries & Orders1997 - 2004

Source: Intercargo Annual Review 2002

0

5

10

15

20

25D

WT

Tonn

es

Delivered 19 11 13 13 21 8Ordered 9 10 6

1997 1998 1999 2000 2001 2002 2003 2004

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Market Conditions for Bulk Shipping

BDI has remained firm, up 174% in 2003 & 18% to 6 Feb 2004

Quantity of dry bulk cargo remains high.

Reduction in capacity expected from 2002 onwards as order indications have been weak for dry bulk carriers.

Impact: BDI expected to be more stable as demand for cargo space and available capacity will be better matched. Benefit existing players like COSCO Corporation.

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5.5. Group ProspectsGroup ProspectsShipping & AgenciesShipping & Agencies

Firmer freight rates has benefited charter renewals for the Group’s bulk carriers

Higher renewal rates will impact group results in FY 2004.

Earnings from new ships: MV COS Knight and MV COS Lucky will contribute to current year profits.

New buildings will be added to fleet over next 2 years

Agency businesses continue to provide strong and steady income.

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Ship RepairShip repair sector in China will continue to grow due to low costs and growth of China’s foreign trade.

More foreign vessels will undertake ship repair at China shipyards.

Purchase of COSCO Dalian and COSCO Nantongwill expose Group to growth opportunities in China ship repair segment.

Both shipyards will have a full year contribution to FY2004.

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Current Year ProspectsCurrent Year Prospects

Continue to focus on core business of dry bulk shipping and ship repair.

Expansion of bulk cargo fleet in near future.

Firmer BDI (up 174% in 2003) has continued to rise 18% to 6 Feb2004. At current levels, all 14 charter agreements will be renewed at higher rates.

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Current Year ProspectsCurrent Year Prospects

Associate companies from shipyards will remain strong in FY2004.

Exploring more shipyard acquisition opportunities in China.

With higher charter rates and profits from China ship yards, profit momentum of FY2003 should continue into FY2004. Group net profit in FY2004 to be higher than FY2003.

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COSCO COSCO -- 5 Year Price Chart5 Year Price Chart

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2003 / 2004 Price Chart2003 / 2004 Price Chart

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Conclusion

Restructuring & divestment almost completed in

last two years

Focus on core businesses

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Contact us at :Contact us at :www.cosco.com.www.cosco.com.sgsg

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Thank YouThank You