9 Months 2003 Results Announcement 28 October, 2003 Scope of Briefing

Transcription

1 9 Months 2003 Results Announcement 28 October, Scope of Briefing Group Financial Highlights Business Review and Outlook 2 1

2 Group Financial Highlights 9M 2003 Performance 9M 2003 PATMI of S$290m, up 10% from 9M 2002 EPS of 37.5 cents, up 9% from 9M 2002 ROE reached 13.9% Strong operating cashflow of S$435m EVA improved by S$110m over 9M

3 Earnings & EPS Growth 9M M 2002 % Change Turnover 4,731 3, EBITDA Operating Profit Profit Before Tax PATMI EPS (cents) Continued growth in EPS 5 Capital/Gearing/ROE 30 Sep Dec 2002 Shareholders' Funds 2,847 2,718 Capital Employed 4,079 3,872 Net Debt 3,807 3,890 Net Gearing 0.93x 1.00x ROE 13.9%* 13.4% Continued improvement in ROE 6 3

4 Free Cashflow 9M 2003 Cashflow from operating activities Operating profit 368 Depreciation, amortisation & other items 174 Working capital changes 5 Interest & tax paid (112) Net cash from operating activities 435 Investments in Keppel Bay Towers, operational capex & others (296) Disposal of Keppel Insurance & Setsco & other assets 102 Dividend Income 50 Net cash used in investing activities (144) Dividends paid to shareholders of the company & subsidiaries (222) Free Cashflow 69 7 Turnover by Segments 9M 2003 % 9M 2002 % % Change Offshore & Marine 1, , (25) Property Sub Total 2, , Investments 2, , Total 4, , Higher contribution from Property & 8 4

5 EBITDA by Segments 9M 2003 % 9M 2002 % % Change Offshore & Marine (8) Property Sub Total Investments Total Core businesses continue to generate strong cashflow 9 PATMI by Segments 9M 2003 % 9M 2002 % % Change Offshore & Marine (19) Property Sub Total Investments Total contributed significantly to improvement in core businesses PATMI 10 5

6 PATMI By Segments S$m 300 S$263m 10% growth S$290m % growth Offshore & Marine Property Investments Deferred Tax Adjustments M M Core Businesses PATMI Growth S$m % growth % growth M M 2003 Offshore & Marine Property Deferred Tax Adjustments 9 - Total

7 9M 2002 PATMI Investments 17% 45 5% 14 Property 25% 65 Our Profit Mix Offshore & Marine 53% 139 9M 2003 PATMI 15% Investments 22% Offshore & Marine 39% 112 Property 24% Higher contribution from 13 PATMI & EPS (1999 Present) PATMI EPS (Cents) % CAGR Q: Q: Q: 83 1Q: Q: 93 3Q: 81 2Q: 100 1Q: 82 3Q: % CAGR Q: Q: Q: Q: Q: Q: 2Q: Q: Q: Q: Q: 1Q: Q: '99 '00 '01 '02 9M 03 1H 2H '99 '00 '01 '02 9M

8 ROE (1999 Present) ROE (%) M 2003* 15 Business Review and Outlook 8

9 Offshore & Marine 9M M 2002 % Change Turnover 1,035 1,378 (25) EBITDA (8) Operating Profit (16) Profit Before Tax (22) PATMI (19) ROE* 21.4% 15.2% 41 Lower PATMI due mainly to fewer contracts in Offshore & Marine Contracts S$'m 1,210 1, YTD 2003 On track to secure contracts of S$1B - S$1.5B in

10 Offshore & Marine Orderbook For delivery in FPSO Conversion / Topsides / 1 Tender Rig Repair Contract Value Clients 57 Halliburton / SBM / Smedvig 2 Jackup upgrades / Repair / 1 Processing platform / 1 Derrick Barge Upgrade / 1 Pipelayer Modification 138 Ensco / Petrovietnam / Saipem / Allseas 1 AHTs / Compressor Modules 77 Delba Maritima / Dresser Rand For delivery in Jackups / 1 Jackup Repair / 1 Spar Platform / 2 FPSO conversions TOTAL (As at 28 October 2003) 1.5b 618 Perforadora / BP / Diamond Offshore / Pride / SBM / Halliburton 9 AHTs / 4 Tugs For delivery in PSVs Delba Maritima / Pacific Richfield / CH Offshore / Hadi Hammam / Keppel Smit / PSA Marine Maersk 1 Platform Modification / 1 Jackup 297 Boeing / NDC Major jobs on schedule and within budget 19 Offshore & Marine Review & Outlook Offshore / FPSO Conversions Strong demand from national oil companies for offshore fabrication and conversions including premium jackups, semis and FPSOs Deep shelf gas drilling in the GOM should drive demand for premium jackups Shiprepair / Shipbuilding Shiprepair market remains competitive Ageing supply vessel fleet continues to drive strong demand for tugs and specialised supply vessels 20 10

11 O&M Job Prospects Contracts currently being pursued include: Products/Services Jackups (Newbuildings/Repairs/Upgrading) Semi-submersibles (Newbuildings/Repairs/Conversions) FPSOs (Conversions/Upgrades) Estimated Value (S$b) Shipbuilding (AHTs/Offshore Supply Vessels/Barges) 0.9 Platforms/TLPs/Topsides/Turrets, etc. 0.3 Total Financial Highlights - Property 9M M 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 7.8% 6.4% 22 Higher contribution from regional residential projects NB: Property Segment includes all property business of KCL 22 11

12 Overseas Property Review & Outlook One Park Avenue in Shanghai 100% sold Strategy to take advantage of regional economic growth Development of residential townships in Chengdu and Shenyang Acquisition of 12.5 ha. freehold site in Bangkok for landed residential development Residential launches in Shanghai, Bangkok and Ho Chi Minh City in 4Q 2003 Singapore Possible residential launches / re-launches in 4Q 2003: The Tresor, Wee Nam and Caribbean at Keppel Bay Continue efforts to divest investment properties 23 9M M 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 14.3% 4.7%

13 Review & Outlook Power barges generate strong earnings and cashflow Contribution from Environmental Engineering and Power Generation businesses expected to increase Network Engineering remains challenging; focus on cost management and consolidation Order book of S$900m for delivery between 2003 and Financial Highlights - Investments 9M M 2002 % Change Turnover 2,467 1, EBITDA Operating Profit Profit Before Tax PATMI

14 Divestment 28% interest in SPC for S$180m Capital Employed Net Debt Debt / Equity Ratio As at 30 Sep ,079 3, Assumed divestment in SPC - (565) 4,079 3, Continue to extract maximum value from divestments to finance growth plans and improve future earnings 28 14

15 Financial Targets Continued growth in core businesses Higher contribution from and Property Maintain ROE of 12-15% Continued EPS growth Maintain dividend payout ratio of 30-35% Continued investment in core businesses and divestment of non-core businesses Continued EVA improvement 29 Outlook for 2004 & Beyond Sustainable long-term earnings growth underpinned by: Strong Offshore & Marine fundamentals Focus on regional residential development projects New investment prospects for Divestment of non-core assets and strong operational cashflows will provide resources to finance growth 30 15

16 Keppel Corporation 9M 2003 Results Thank You Q&A 31 Additional Info 32 16

17 Keppel Corp 1Q Q 2002 % Change Turnover 1,744 1, EBITDA Operating Profit Profit Before Tax PATMI EPS (cents) ROE* 13.6% 12.2% Keppel Corp 2Q Q 2002 % Change Turnover 1,476 1,349 9 EBITDA Operating Profit (6) Profit Before Tax (6) PATMI (2) EPS (cents) (3) ROE* 13.7% 13.1%

18 Keppel Corp 3Q Q 2002 % Change Turnover 1,511 1,462 3 EBITDA Operating Profit Profit Before Tax PATMI EPS (cents) ROE* 13.7% 11.2% Turnover by Customers 9M 2003 Total Overseas Singapore (%) (%) Offshore & Marine 1, Property Sub total 2, Investments 2, Total 4, % of core businesses turnover came from overseas customers 36 18

19 Offshore & Marine 1Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax (11) PATMI (8) ROE* 20.2% 13.6% Offshore & Marine 2Q Q 2002 % Change Turnover (30) EBITDA (17) Operating Profit (25) Profit Before Tax (28) PATMI (33) ROE* 26.1% 16.7%

20 Offshore & Marine 3Q Q 2002 % Change Turnover (40) EBITDA (8) Operating Profit (20) Profit Before Tax (25) PATMI (12) ROE* 26.7% 13.7% Property 1Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 6.7% 5.2% 29 NB: Property Segment includes all property business of KCL 40 20

21 Property 2Q Q 2002 % Change Turnover EBITDA (2) Operating Profit Profit Before Tax PATMI ROE* 7.7% 5.9% 31 NB: Property Segment includes all property business of KCL 41 Property 3Q Q 2002 % Change Turnover EBITDA Operating Profit (2) Profit Before Tax (8) PATMI (13) ROE* 8.6% 7.5% 15 NB: Property Segment includes all property business of KCL 42 21

22 1Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 18.5% 5.9% Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 13.0% 6.5%

23 3Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax ,600 PATMI ROE* 12.1% 1.2% Utilities Engineering 9M M 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 17.7% 5.2%

24 Utilities Engineering 1Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 23.4% 4.5% Utilities Engineering 2Q Q 2002 % Change Turnover EBITDA Operating Profit ,300 Profit Before Tax PATMI ROE* 15.4% 5.0%

25 Utilities Engineering 3Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI ROE* 15.1% 5.8% Network Engineering 9M M 2002 % Change Turnover (27) EBITDA (5) 9 NM Operating Profit (8) 6 NM Profit Before Tax (6) 7 NM PATMI (7) (1) NM ROE* NM NM NM 50 25

26 Network Engineering 1Q Q 2002 % Change Turnover EBITDA - 4 NM Operating Profit (1) 3 NM Profit Before Tax (1) 5 NM PATMI (2) 1 NM ROE* NM 20.0% NM 51 Network Engineering 2Q Q 2002 % Change Turnover (23) EBITDA (3) 7 NM Operating Profit (4) 7 NM Profit Before Tax (4) 7 NM PATMI (2) 2 NM ROE* NM 19.6% NM 52 26

27 Network Engineering 3Q Q 2002 % Change Turnover (48) EBITDA (2) (2) - Operating Profit (3) (4) NM Profit Before Tax (1) (5) NM PATMI (3) (4) NM ROE* NM NM NM 53 Investments 1Q Q 2002 % Change Turnover EBITDA (25) Operating Profit (33) Profit Before Tax (14) PATMI (21) 54 27

28 Investments 2Q Q 2002 % Change Turnover EBITDA Operating Profit Profit Before Tax PATMI Investments 3Q Q 2002 % Change Turnover EBITDA Operating Profit 22 (1) NM Profit Before Tax PATMI