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Fourth Quarter and Full Year2014Financial Results

24 February 2015

2/24/2015

Introduction

Financial Highlights & Review

Business Review

Market Outlook

Positioning for Sustainable Growth

Summary

Scope of Briefing

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Revenue 4.6% to $62.9m 18.3% to $318.6m

Net Profit 63.7% to $ 3.8m 14.4% to $ 26.2m

Operating Profit 57.5% to $ 4.8m 12.8% to $ 31.3m

Gross Profit 13.0% to $19.7m 9.1% to $ 71.9m

Pre-tax Profit 63.2% to $ 4.1m 17.1% to $ 29.5m

EPS 56.2% to 0.39cts 13.6% to 2.42cts

EBITDA 21.5% to $10.6m 4.3% to $ 46.0m

Dividend (first &final) 25.0% to 1.5cts

4Q 2014 & FY 2014 Financial Highlights

4Q 2014 FY 2014

Year 4Q 4Q % FY FY %

Description ($m) 2014 2013 Change 2014 2013 Change

Revenue 62.9 65.9 ( 4.6) 318.6 269.4 18.3

Gross Profit 19.7 17.5 13.0 71.9 65.9 9.1

EBITDA 10.6 13.5 (21.5) 46.0 44.1 4.3

Operating Profit 4.8 11.3 (57.5) 31.3 35.9 (12.8)

Pre-tax Profit 4.1 11.2 (63.2) 29.5 35.6 (17.1)

Net Profit 3.8 10.5 (63.7) 26.2 30.7 (14.4)

EPS, basic (cents) 0.39 0.89 (56.2) 2.42 2.80 (13.6)

NAV (cents) 19.58 19.01 3.0 15.74 14.23 10.6

Financial Highlights

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23.5

60.178.9

57.8

76.6

97.4

59.8

66.8

79.4

74.2

65.9

62.9

118.6

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

2011 2012 2013 2014

1Q 2Q 3Q 4Q FY 2011

Financial Review : Quarterly Turnover (2011 to 2014)

$’m

215.3

269.4

+18.3%

118.6

318.6

- 4.6%

3.3

6.7 8.0

6.1

7.56.7

10.2

5.97.8

8.810.5

3.8

18.1

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

2011 2012 2013 2014

1Q 2Q 3Q 4Q FY 2011

Quarterly Net Profit (2011 to 2014)

$’m

28.4

30.7

14.7

-14.4%

18.1

-63.7% 26.2

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Year %

Description ($’m) FY 2014 FY 2013 change

Shareholders’ Funds 196.3 192.5 2.0

Net Cash (24.7) 25.8 n.m.

ROE (%) 13% 15% (13.3)

Net Asset Value (cents) 19.58 19.01 3.0

RoTA (%) 17.0% 19.0% (10.5)

Economic Value Added 19.5 22.5 (15.7)

Capital, EVA, Gearing and ROE

ROE at 13%

Year %

Description ($’m) FY 2014 FY 2013 change

Cashflow from operations before 50.3 44.3 13.5working capital changes

Net cash (outflow)/inflow from (17.1) 11.9 n.m.operating activities

Net cash outflow from (8.3) (37.6) ( 77.9)investing activities

Net cash inflow from 10.3 14.0 (26.4) financing activities

Cash & cash equivalents 15.9 31.0 (48.7)

Cashflow

Cash & Cash equivalents at $15.9 million

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Capex

Year Actual Actual

Description ($’m) FY 2014 FY 2013

Buildings & Land Enhancement 0.3 12.1

Site Equipment and Tools 2.8 3.5

Others 2.2 2.4

Sub-total 5.3 18.0

Singapore Yard 0.9 1.5

Johor Yard 6.9 6.0

China Yard 4.0 1.5

Philippines Yard - 0.1

Grand Total 17.1 27.1

FY 2014 Capex at $17.1 million

Shareholder Value : rewarding shareholders

2.0 2.0

1.5

2.0

62

71

62

72

0.0

0.5

1.0

1.5

2.0

2.5

2011 2012 2013 2014

56

58

60

62

64

66

68

70

72

74

Dividend

Dividend payout

Cents %

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20.5

22.522.2

31.4

22.0

17.6

26.5

28.8

30.2

17.7

24.4

23.1

33.0

17.0

6.1

9.810.1

6.9

15.9

10.5

14.2

8.8

9.8

11.211.8

7.9

0

5

10

15

20

25

30

35

4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14

Gross Profit Margin

Net Profit Margin

Percentage

Quarterly Gross & Net Profit Margin

26.5

24.4

26.3

22.6

8.2

11.4

13.2

11.3

0

5

10

15

20

25

30

2011* 2012 2013 2014

Gross Profit Margin

Net Profit Margin

Percentage

Yearly Gross & Net Profit Margin

* Based on change in financial year end from 31st May to 31st December

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Core Businesses : Diverse & Proven Key Products

Process Module

LP Separation Module

Power Generation

Turret Collar Structure

LQ of semi-submersible

Sea Water Injection Module

Flare Ko Drums

CSU,PW,Fuel Gas System

Chemical Injection

Semi-submersible Hulls

EPC Offshore Modules : FPSO/FSOSpecialised Offshore Products: Turrets & semis/JUs

Onshore Plants

Lower Turret Structure

Local Equipment Room

Upper Hull Blocks of semi-submersible

Plant Modules – Power Generation& Equipment Room

172,991

96,360

309,641

8,925

Business Review : Core Businesses

FY 2013FY 2014

Offshore Modules64%

Others36%

Offshore Modules97%

Others3%

Segment FY 2014 FY 2013

($’000) ($’000)

Offshore Modules 309,641 172,991

Others 8,925 96,360

Total 318,566 269,351

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Types No. of Units

FPSO Topsides ModulesFPSO Cluster 7 3FPSO Cidade De Marica 13FPSO Cidade De Saquarema 13FPSO Stones 8

Total No. of FPSO Modules 37

Non-FPSO ModulesMalampaya Phase 3 5Malampaya – Bridge landing & Pipe Rack 1Ten Tullow Pipe Racks 6Fuel Gas Skid/utility module 1Malampaya – in fill structure 1

Total No 14

OthersB356 Mobile Offshore Drilling unit 1B363 Mobile Offshore Drilling unit 1

Total No 2

Grand Total 53

Record Deliveries & Completions in 2014

Business Review: Deliveries & Completions in 2014

Shell MalampayaInstallation in place at site

FPSO Cluster 7 -Export Gas Compressor, Fuel Gas & Gas Metering

Cidade De Marica – Injection Compression, TS267 Manifold D, TS266 Manifold C

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

2011 2012 2013 2014 2015 (Feb)

Contracts secured 2011 to 2015 (to-date)

S$’m

178

132

316

92

149

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0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

1Q201

2

2Q201

2

3Q201

2

4Q201

2

1Q201

3

2Q201

3

3Q201

3

4Q201

3

1Q201

4

2Q201

4

3Q201

4

4Q201

4

Net Order Book

$’m

201 203215

134

113

246

346

324

342

266

223

The Group expects to grow order book

353.7

0

20

40

60

80

100

120

140

160

J-04 J N A S F J D M O M A

J-09 J N A S F J D M O M A

J14 J N

Feb-16

US$ per barrel

Market Outlook

$134/bbl

$40/bbl

$117/bbl$125/bbl

$95/bbl

$102/bbl$109/bbl$111/bbl

$72/bbl

$83/bbl

$50/bbl

$55/bbl

Long-term fundamentals intact despite lower oil prices

$47bbl

$58bbl

$61/bbl

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Positioning for Sustainable Growth

Singapore : 2 Locations, Gul Road & Pandan Crescent

Malaysia : Tanjung Kupang, Johor

Philippines : DMKP Subic Yard

China : Nansha, Guangzhou

Expanding Broad Range of Product Offerings

Diverse Customer Base : value-add solutions

Positioning for Sustainable Growth

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Location Gul Road

Total Land Area 110,300 sqm

Water Depth 7.8 m

Wharf Length 300 m

Max. Load-out Capacity 27,000 mt

Activities:

Onshore & offshore projects of up to

25,000 tonnes annually

Topside modules for FPSOs & FSOs,

Pipe Spools, Semi-submersibles &

Subsea products

Singapore Yard Facilities : Main Yard

Singapore Yard Facilities : West Yard

Location Pandan Crescent

Total Land Area 30,100 sqm

Water Depth 4 m - 6 m

Wharf Length 97.8 m

Load-out Jetty Area 1,380 sqm

Activities:

Exotic piping fabrication including duplex

and super duplex stainless pipe spools

air-conditioned facility controls the environment

and prevents contamination from dust and other

ferrous particles

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Malaysia Yard Facilities : Tanjung Kupang, Johor(progressive development)

Location Tanjung Kupang

Johor (Malaysia)

45 minutes by car (20km)

Total Land Area 211,000 sqm

Water Depth 14 m

Wharf Length 142 m

Max. Structure Capacity 28,000 mt/yr

Activities :

• FPSO Topside Modules & Semi-submersible Unit

• CPP/WHP/LQ Platform

• On-shore Plant Modules

DM Malaysia

Yard

DM Singapore Yard

Philippines Yard Facilities : Leveraging on Partnership

Location : Keppel Subic Shipyard is situated in the Special Economic Zone of Subic, Zambales, in central Luzon, and has one of the largest drydocks in Philippines, which is capable of co-drydockings.

Activities : Construction of Topside Modules

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China Yard Facilities : Nansha, Guangzhou

Location Guangzhou, Nansha

Total Land Area 100,000 sqm

Water Depth 6 m – 8 m

Sea-Front Quay Length 320 m

Max. Loadout Capacity 3,000 mt

Activities :

• FPSO Topside Modules

• Living Quarter

• Structures of semi-submersible, jack-up rigs

• New Building Deck Cargo/Ballastable Barge

60mins drive from

ShenZhen Airport

75mins ferry from

Hong Kong Airport

Expanding Broad Range of Products : Offshore & Onshore

Group’s Growth Driver :

* EPC Offshore Modules for FPSOs & FSOs

* Specialised Modules for FPU, TLP/SPAR

* Fixed Platform Topsides/Modules

* Others – turret & mooring equipment, subsea piping & structures

Expanding Product Range

* Onshore Modular Plant Modules (oil & gas processing facilities)

* Specialised Modules for FLNG & onshore LNG

Exploring new geographies & scope of services

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Diverse Customer Base : developing value-add solutions

Customers are among the world’s largest owners & operators of FPSOs and FSOs

Multinational engineering companies in the marine and oil and gas industries

Summary

Net Order book at $353.7 million as at 2015 to-date with

completions & deliveries extending into 2016

Balance Sheet position

Long-term fundamentals for offshore & onshore oil and gas

industries remain intact despite sharp dip in oil prices

Positioning yards for sustainable growth

Expanding diverse range of products & customer base

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This release may contain certain forward-looking statements which are subject to risks and

uncertainties that could cause actual results to differ materially from such statements. Such

risks and uncertainties include industry and economic conditions, competition, and legal,

governmental and regulatory changes. The forward-looking statements reflect the current

views of Management on future trends and developments.