1

1Q 2002 Results Announcement18 April, 2002

2

Scope of Briefing

1. Group Financial Highlights

2. 1Q Business Review and 2Q Outlook

3. Strategic & Corporate Review

1. Group Financial Highlights

4

Financial Highlights in 1Q

1Q PATMI was S$82m, 47% higher than last year

• Offshore and Marine contributed 48%

• Investments contributed 29%

Annualised ROE surpassed 12%, an increase from 10.1% in year 2001

Current order book is about S$3.5 billion

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Financial Highlights – P/L

1Q 2002 1Q 2001* % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax

PATMI before EI

EPS before EI (cents)

1,163.6 1,540.0 (24)

155.9 236.1 (34)

113.6 184.3 (38)

131.1 187.0 (30)

82.1 55.9 47

10.7 47

($m)

7.3

* Include Keppel Capital Holdings (KCH) contributions

Higher PATMI and EPS are due to the net effect of divesting KCH and privatising KFEI and KHZ.

6

Financial Highlights – B/S

As at 31 Mar 2002

As at 31 Dec 2001 % Change

Shareholders’ Fund

Capital Employed

Net Gearing

Net Debt

2,743 2,658 3

4,057 4,114 (1)

1.17x 1.10x 6

4,737 4,525 5

($m)

ROE (Before EI) 12.2%* 10.1% 21

* Annualised

Balance sheet remains strong.Annualised ROE improved by 21% to reach 12.2%

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Turnover by Segments

1Q 2002 1Q 2001 % Change

Offshore & Marine

Infrastructure

Property

Investments

%%

385.1

135.2

93.3

549.9

261.7

113.5

68.0

653.6

47

19

37

(16)

33

12

47

8

60

6

10

24

($m)

Keppel Capital 0 443.2 na

Total 100 1001,163.6 1,096.8 6

Turnover of core businesses* increased by 38%

* Core businesses are Offshore & Marine, Infrastructure and Property

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EBITDA by Segments

1Q 2002 1Q 2001 % Change

Offshore & Marine

Infrastructure

Property

Investments

%%

61.4

15.1

36.4

43.1

22.4

35.9

38.8

11.9

174

(58)

(6)

262

39

10

28

23

11

36

33

20

($m)

Keppel Capital 0 127.2 na

Total 100 100155.9 108.9 43

Strong cash generation from core businesses*

* Core businesses are Offshore & Marine, Infrastructure and Property

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PATMI by Segments1Q 2002 1Q 2001 % Change%%

38.9

5.7

13.2

24.2

5.6

16.3

12.4

(11.1)

595

(65)

6

na

48

7

29

16

(48)

54

70

24

($m)

Total 100 10082.1 23.2 254

Offshore & Marine

Infrastructure

Property

Investments

0 32.7 naKeppel Capital

PATMI of core businesses* grew by 69% to S$58m from S$34m

* Core businesses are Offshore & Marine, Infrastructure and Property

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Result By Segments

PATMI (before EI )

24.2

(11.1)

13.2

12.4

5.7

16.3

38.9

5.6

32.7

(12.0)

(2.0)

8.0

18.0

28.0

38.0

48.0

58.0

68.0

78.0

1Q 2001 1Q 2002

S$m

KCHoffshore & MarineInfrastructurePropertyInvestment

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Growth of Core Businesses

(11)

9

29

49

69

S$m

Offshore & Marine 5.6 38.9 I nfrastructure 16.3 5.7 Property 12.4 13.2 Total 34.3 57.8

1Q 2001 1Q 2002

PATMI (before EI)

(S$m)

69% growth

34.3

57.8

2. 1Q Business Review and 2Q Outlook

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1Q Group Business Highlights O&M had 2 project completions

Privatisation of KHZ completed

Clinched US$400m electricity supply contract in Brazil

Network Engineering Division completed S$37.1m* worth of projects

Strong take-up rates for recently launched properties

* Exclude Network Engineering projects from associates

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Financial Highlights – Offshore & Marine

1Q 2002 1Q 2001 % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax

PATMI

385.1 261.7 47

61.4 22.4 174

48.5 8.7 457

54.2 11.9 355

38.9 5.6 595

($m)

Annualised ROE 14.1% 4.3% 228

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Offshore & Marine Review

Strong order book resulted in higher turnover in 1Q 2002

Increase in operating profit because of:

• lower unit overheads from higher capacity utilisation rates

• higher value-added jobs

100% profit recognition at Group level

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Offshore & Marine Review

Early completion of the US$60m upgrading of semi-submersible ‘Ocean Baroness’ for Diamond Offshore

• Awarded cash bonus for early completion

• Clinched repeat contract for upgrading of “Ocean Rover”

Completion of US$110m Chiles Discovery jack up rig

• Awarded cash bonus for early completion

Integration of KHZ and KFELS on track

• synergies of at least S$10m will be achieved in 2H2002

Major jobs in progress are on schedule and within budget

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Offshore & Marine Review

Accolades received:

• Keppel FELS

– first major shipyard in Singapore to receive re-certification under ISO 9001:2000

• Keppel Shipyard

– distinction given by Singapore’s Productivity and Standards Boards in implementing National Skills Recognition System

Recognition for Outstanding Management:

• Choo Chiau Beng, Chairman and Managing Director of KFEI awarded “Outstanding CEO of the Year 2001”

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Offshore & Marine Outlook

Strong Orderbook of S$2.2b for delivery between 2002 – 2004

Continue to receive enquiries on new rigs, upgrades, conversions, repairs and new-builds of specialised vessels

Overall market outlook is positive

• demand for conversions and upgrades expected to be buoyant due to:

– high oil and gas prices

– increased activity in deep water production and exploration

• shiprepair market likely to remain competitive

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Financial Highlights – Infrastructure

1Q 2002 1Q 2001 % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax

PATMI before EI

37.1 27.3 36

4.5 2.6 73

3.8 2.1 81

5.3 6.5 (18)

1.3 2.7 (52)

($m)

ROE na na na

Network Engineering

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Infrastructure Review

Network Engineering

Lower Q1 PATMI due to

• increased marketing activity in existing and new markets

• infrastructure set-up costs for global operations

Current jobs progressing on time and budget

Making headway in new markets

• S$400k initial contract secured from Nokia for Zhejiang province, with potential for S$10m follow-on contract

• market development work in Japan, Spain, Luxembourg, France, Italy and the Netherlands

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Infrastructure Outlook

Network Engineering

Order book of $530m for delivery between 2002 and 2004• Wireless S$170m• Wireline S$360m

Pursuing orders in excess of S$300m Better PATMI in 2Q 2002 expected Current contracts in Malaysia and Germany will be key

earnings contributor Outsourcing of Network Engineering projects by Telcos,

Cable Operators and Equipment vendors will continue to fuel growth

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Financial Highlights – Infrastructure

1Q 2002 1Q 2001 % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax

PATMI

98.1 86.1 14

10.6 33.3 (68)

4.5 29.9 (85)

4.9 30.7 (84)

4.4 13.7 (68)

($m)

ROE na na na

Utilities Engineering

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Utilities Engineering

Electricity marketing business contributed to increase in turnover

Lower Q1 PATMI due to realisation of toll-road investment in 1H 2001

Secured US$400m contract to supply electricity in Brazil between June 2002 - Dec 2004

Power generation projects are in start-up phase

Infrastructure Review

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Utilities Engineering

Earnings from Brazil power barges project expected to kick in from 2H 2002 onwards

Performance of power generation assets expected to be maintained in 2Q 2002

Participating in the PUB desalination bid in May 2002

Any delay of genco privatisation in Singapore will not impact projected earnings for 2002

Infrastructure Outlook

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Financial Highlights - Property

1Q 2002 1Q 2001 % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax

PATMI

93.3 68.0 37

36.4 38.8 (6)

30.8 32.3 (5)

31.1 25.3 23

13.2 12.4 6

($m)

ROE 5.0% 3.6% 39

*Property Segment includes all property related businesses of KCL

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Property Review

Strong take-up rates for recently launched properties resulted in higher turnover:

• The Edgewater – 100% sold

• Amaranda Gardens – 98% sold

• Butterworth 8 - 100% sold

Appointed HypoVereinsbank for securitisation of more than S$300m worth of receivables from above 3 projects

Completed US$800m multi-currency medium-term note (MTN) programme

Pursuing various options to divest investment buildings

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Property Outlook

Two residential launches expected in 2Q 2002

• 22-26 Mar Thoma Road

• 6 Mar Thoma Road

One Park Avenue in Shanghai to be launched in 2H 2002

Possible residential launches / re-launches in 2H 2002

• Duchess Park, Parc Devon, The Linc, Norfolk Gardens, Cluny Hill, Freesia Woods and Caribbean

Maintain business development efforts for residential development projects overseas including China, Thailand and Vietnam

127 units

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Financial Highlights - Investments

1Q 2002 1Q 2001 % Change

Turnover

EBITDA

Operating Profit

Profit Before Tax*

PATMI*

549.9 653.6 (16)

43.1 11.9 262

26.1 (9.1) na

35.6 (9.2) na

24.2 (11.1) na

($m)

* Before EI

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Investments Review

Higher profitability due to

• Higher PATMI of S$13m from SPC due partly to higher product prices in SPC

• gains of about S$11m from sale of quoted investments

M1 contributed $6m to Q1 PATMI

• customer base crossed the 1 million-mark

Accolades received:

• Keppel Logistics awarded ISO 9001, ISO 14001 and OHSAS 18001 simultaneously

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Investments Outlook

Singapore refining margins remain challenging

Actively drive divestment of non-core assets:

• currently investigating a number of initiatives

• expect to announce one major divestment in 2002

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Group Outlook for 2Q 2002

Performance for 2Q expected to be maintained

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PATMI in S$(Millions)

1088684106

134

12913474

40

82

1997 1998 1999 2000 2001 2002Year

Q12H1H

PATMI (1997 – Present)

83

56

180

124

220237

273

33

ROE (% )

12.2*

10.1

7.9

3.95.3

8.5

1997 1998 1999 2000 2001 1Q 2002

Year

ROE (1997 – Present)

* Annualised ROE

3. Strategic & Corporate Review

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Strategic Review

Financial Targets - On Track

15% - 20% CAGR earnings growth through 2003

ROE of 12% - 15% by end 2003

Net gearing of 0.6x - 0.8x by end 2003

EVA focused

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Strategic Review

Our Roadmap

Focus resources on core businesses• Divest non-core businesses

Strong corporate governance process• Disciplined investment and divestment management

Implement ROE and EVA based performance measures• Revamp reward system to be more individual

performance linked Effective and timely communication for greater market

transparency Widen global reach: markets, facilities, partners and

alliances.

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Corporate Review

Code of Corporate Governance(Ministry of Finance)

Code issued 21 Mar ‘01

KCL Corporate Governance Committee formed May ‘01

Corporate Governance Implementation Plan approved by KCL Board Aug ‘01

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Corporate Review

Strengthening Corporate Governance

Increasing accountability of:

• Management to Board

• Board to Shareholders

Having only independent Directors on Audit, Nominating and Remuneration Committees

Put in place processes for:

• Board appraisal of senior management

• Board peer appraisal:

– of each Director

– of Board as a Team

• Board appraisal of Chairman

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Corporate Review

Strengthening Corporate Governance

2 new independent Directors appointed on 16 April

Board comprises 11 Directors of whom 7 are independent

Appointed 6-member EXCO, comprising 3 independent directors and 3 executive directors

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MDC:Strategic HR

Issues

Group Risk Management & Internal Audit

Corporate Governance Structure

KCL BOARD

KCL MANAGEMENT

REMUNERATION COMMITTEE

AUDIT COMMITTEENOMINATING

COMMITTEE

PropertyOffshore & Marine Infrastructure Investments

Shareholders

KCL EXCO

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Corporate Review

Recognition for corporate transparency

Keppel Land – eighth Grand Award at the 28th Annual Report Awards Competition;

Keppel Corp, Keppel Hitachi Zosen and Keppel Telecommunications & Transportation – Special Commendation

• Awards organised by SGX, ICPAS, SIM, SID and BT

• Grand Award: Company eligible to be considered for Grand Award only after receiving Best Annual Report for 3 consecutive years

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Corporate Review

Human Resource Development

Implemented vigorous performance appraisal process:

• Completed 1st annual performance ranking

• Identified high potential performers

• Management of under performers

Implemented performance differentiated variable bonus payment for Y2001’s performance

Initiated succession planning for key positions

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Corporate Review

Human Resource Development (…contd)

Reviewing Total Remuneration Compensation

Structure across the Group

Integrating processes & systems to ensure smooth

and efficient 2 - way information flow globally.

Instituted a structured training program with

emphasis on key competencies and leverage on the

group size.

44

Corporate Review

Improving Investor Relations

Investor road shows:

• Hong Kong in Jan 2002

• Europe and USA in Feb 2002

Initiated quarterly reporting; 1 year ahead of SGX requirements

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Growth Strategy

Leverage relationships with strategic partners

Gain greater access to key overseas markets

Focus on growing intellectual capital

Continue to streamline and restructure organisation to improve efficiency and to support growth

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Keppel Corporation Q1 2002 Results

Thank You