14/11/14. Introduction. Financial Highlights & Review. Business Review. Market Outlook. Strategic Positioning for Sustainable Growth.

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1 // Third Quarter and Nine Months Financial Results November Scope of Briefing Introduction Financial Highlights & Review Business Review Market Outlook Strategic Positioning for Sustainable Growth Summary 3Q & 9M Financial Highlights 3Q 9M Net Profit 3.% to $.m.3% to $.m Revenue.9% to $9.m.% to $.m Operating Profit.% to $.m.% to $.m Gross Profit.% to $.m.% to $.m Pre-tax Profit 9.% to $.m.% to $.m EPS.3% to.cts.3% to.3cts EBITDA.% to $.9m.% to $3.3m

2 // Financial Highlights Year 3Q 3Q % 9M 9M % Description ($m) 3 Change 3 Change Revenue Gross Profit.. (.)... EBITDA Operating Profit Pre-tax Profit Net Profit EPS, basic (cents) NAV (cents) Financial Review : Quarterly Turnover ( to 9M ) $ m 3 Q Q 3Q Q FY % % M Quarterly Net Profit ( to 9M ) $ m Q Q 3Q Q FY % M. +.3%

3 // Capital, EVA, Gearing and ROE ROE annualised at % Year % Description ($ m) 9M 9M 3 change FY 3 Shareholders Funds Net Cash (.). n.m.. ROE - annualised (%)* % % - % Net Asset Value (cents) RoTA annualised (%)* % % 3.9 % Economic Value Added.... * Annualisedfigures are calculated proportionately Cashflow Cash & cash equivalents at $.9 million Year % Description ($ m) 9M 9M 3 change Cashflow from operations before working capital changes Net cash outflow from (.) (.3) n.m. operating activities Net cash outflow from (.) (.) 9. investing activities Net cash inflow from.. 3. financing activities Cash & cash equivalents Capex 9M Capex at $. million Year Actual Actual Description ($ m) 9M FY 3 Buildings & Land Enhancement.3. Site Equipment and Tools.9 3. Others.3. Sub-total.. Singapore Yard.. Johor Yard.. China Yard.. Philippines Yard -. Grand Total.. 3

4 // Quarterly Gross & Operating Profit Margin Percentage Quarterly gross & operating profit margin dependent on timing in project recognition and completion 3 Gross Profit Margin 33. Net Profit Margin Q Q Q 3Q Q Q 3 Q 3 3Q 3 Q 3 Q Q 3Q Yearly Gross & Operating Profit Margin 9M Gross Profit Margin at.% & Net Profit Margin at.% Percentage 3 Gross Profit Margin..3 Net Profit Margin * 3 9M * Based on change in financial year end from 3 st May to 3 st December Core Businesses : Diverse & Proven Key Products Process Module EPC Offshore Modules : FPSO/FSO FlareKo Drums Specialised Offshore Products: Turrets & semis/jus LP Separation Module CSU,PW,Fuel Gas System Turret CollarStructure Semi-submersible Hulls Power Generation Chemical Injection Lower Turret Structure Upper Hull Blocks of semi-submersible LQ of semi-submersible Onshore Plants Sea Water Injection Module Local Equipment Room Plant Modules Power Generation & Equipment Room

5 // Business Review : Core Businesses Others % Others 3% 9,3 FY 3,99 Offshore Modules %, 9M, Offshore Modules 9% Segment 9M FY 3 ($ ) ($ ) Offshore Modules,,99 Others, 9,3 Total,3 9,3 Business Review: Completions & Deliveries (as at 3Q ) FPSO Cluster PowerGeneration,N & Compressed Gas System FPSO Cluster CSU, Produced Water System & Flash Gas Compressor FPSO Cluster -Export Gas Compressor, Fuel Gas & Gas Metering Jack-up Rig - Block 3 Jack-up Rig - Block 33 Malampaya Phase 3 : Compressor Module B Malampaya Phase 3 : Air Cooler Module A Contracts secured to (to-date) Secured initial LOIs from repeat customers S$ m M

6 // Net Order Book Given healthy enquiry levels, Group expects to grow order book $ m Q Q 3Q Q Q3 Q3 3Q3 Q3 Q Q 3Q US$ perbarrel Market Outlook: Fundamentals intact despite lower oil prices $3/bbl $/bbl $/bbl $/bbl $/bbl $9/bbl $/bbl $/bbl $9/bbl $9/bbl $3/bbl $/bbl $/bbl J- J N A S F J D M O M A J-9 J N A S F Crude oil prices E&P spending by NOC Major discoveries : * Mozambique, East Africa * Aldous Majour South, Johan Sverdrup, Skrugard & Havis, North Sea *Tambuata, Espirito Santo discovery, Pao de Acucar (Sugar Loaf), Libra & Peregrino, South of Brazil * Zafarani & Lavani, off Tanzania * Pre-salt Angola, Hadrian field, *Carcara subsalt, Santos offshore basin * Nigeria/Angola/Ghana J D M O M A J J Oct- Order Backlog for FPS Units (FPSOs, Semis, Spars, TLPs, FLNGs and FSRUs) 3 production floaters currently on order or 9% for offshorebrazil, 9 or% fornortherneurope, or3% forafricawith or% forsea Asia continuesitsdominanceinfloaterfabrication & conversion LocalcontentrequirementscontinuetoinfluencewithBrazilianyardsaccountingfora quarterof activefacilities Order Backlog (excluding MOPU & FSOs) FPSOs ( conv) 3 Production Semis TLP Production Spars 3Production Barge FLNGs 9 FSRUs Source : EMA

7 // Offshore Production Market : Floaters 3 (vs as at Q ) Projects involving Floating Production or Storage Systems are Planned or Under Study as of 3Q <m water depth Deepwater - m Ultra-Deepwater >m 3 3 No. of FPS Projects 3 3 Gulf of Mexico Africa SEA Brazil Australia/NZ N.Europe SWAME Mediterranean Canada SAMER China Caribbean Canada TBD Source : EMA Offshore Production Market : Bidding & Final Design Stage Of 3 planned projects, Projects in Bidding and Final Design Stage (as of 3Q ) Projects likely to be awarded within to months 9% projects in SE Asia, % in Africa & % in Brazil <m water depth Deepwater - m Ultra-Deepwater >m No. of FPS Projects Gulf of Mexico Africa SEA Brazil Australia/NZ N.Europe SWAME Medit 3 SAMER China TBD Source : EMA Offshore Production Market : In Planning Stage Projects in the Planning Stage (as of 3Q ) * Projects likely to be in the to time frame Africaand NorthernEuropeeachhave projects & Brazil projects GOM with projects,seasia projectsandaustralia/nz projects,mediterranean projects & Chinawith projects No. of FPS Projects <m water depth Deepwater - m Ultra-Deepwater >m Gulf of Mexico Africa SEA Brazil Australia/NZ N.Europe Mediterranean Canada SAMER China Caribbean Source : EMA

8 // Offshore Production Market : In Appraisal Stage Projects are in the Appraisal Stage (as of 3Q ) * Brazil and Africa each account for % & % of projects at this stage respectively Thesearediscoveriesthathave notbeendeclaredcommercialorwhereadditionaldrillingactivitiesareplanned If commercial, a floatingproductionfacilitywilllikelybe required 3 <m water depth Deepwater - m Ultra-Deepwater >m No. of FPS Projects Gulf of Mexico Africa SEA 3 3 Brazil 9 3 Australia/NZ N.Europe SWAME Mediterranean Canada SAMER China Caribbean Source : EMA Strategic Positioning for Sustainable Growth Singapore Malaysia Philippines China : Locations, Gul Road & Pandan Crescent : Tanjung Kupang, Johor : DMKP Subic Yard : Nansha, Guangzhou Brazil : Expanding Diverse Range of Product Offerings Diverse Customer Base & Business Models Strategic Positioning for Sustainable Growth

9 // Singapore Yard Facilities : Main Yard Location Total Land Area WaterDepth Wharf Length Max. Load-out Capacity Gul Road,3 sqm. m 3 m, mt Activities: Onshore & offshore projectsof up to, tonnes annually Topside modules for FPSOs & FSOs, Pipe Spools, Semi-submersibles & Subsea products Singapore Yard Facilities : West Yard Location Total Land Area Water Depth Wharf Length Load-out Jetty Area Pandan Crescent 3, sqm m - m 9. m,3 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 Malaysia Yard Facilities : Tanjung Kupang, Johor (progressive development) Location Total Land Area Water Depth Wharf Length Max. Structure Capacity Tanjung Kupang Johor (Malaysia) minutes by car (km), sqm m m, mt/yr Activities : FPSO Topside Modules & Semi-submersible Unit CPP/WHP/LQ Platform On-shore Plant Modules 9

10 // 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 China Yard Facilities : Nansha, Guangzhou mins ferry from Hong Kong Airport mins drive from ShenZhen Airport Location Total Land Area Guangzhou, Nansha, sqm Water Depth Sea-Front Quay Length Max. Loadout Capacity m m 3 m 3, mt Activities : FPSO Topside Modules Living Quarter Structures of semi-submersible, jack-up rigs New Building Deck Cargo/Ballastable Barge Brazil : Leveraging on Partnership

11 // 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 * Brazil, etc 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 $3 million as at 3Q with completions & deliveries extending into Strong Balance Sheet position Long-term fundamentals for offshore & onshore oil and gas industries remain intact Strategic positioning of yards for sustainable growth Expanding diverse range of products & customer base

12 // 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.