CCB: Right now I cannot let you have more details because the study is still ongoing and we will let you know in due course.

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1 Keppel Corporation First Quarter 2009 Results Webcast Questions & Answers Session 23 April 2009, Keppel Bay Tower, Boardroom, 5.30pm Speakers CCB Choo Chiau Beng, Chief Executive Officer TSH Teo Soon Hoe, Senior Executive Director & Group Finance Director TCH Tong Chong Heong, Chief Executive Officer, Keppel Offshore & Marine CCW Chua Chee Wui, Chief Executive Officer, Keppel Integrated Engineering Kelvin Sam, ODS-Petrodata: Could you share with us the status of your Floatec joint venture with McDermott? Is Floatec likely to secure any EPC contracts this year? Floatec is active in McDermott pursuing potential EPC contracts. Currently, it is bidding with McDermott and our BrasFels yard in Brazil for the P-61 project for Petrobas, and there are several potential deep water projects in the Gulf of Mexico which they are going after. So hopefully, we are able to get some results this year. Kevin Chong, Deutsche Bank: Can you please discuss in further details about potential rationalization and restructuring efforts within the group, and how Keppel Corp can possibly evolve over the coming few years? Right now I cannot let you have more details because the study is still ongoing and we will let you know in due course. Chan Ying Jian, JPMorgan Securities Singapore: On the cancelled Scorpion rig contract, I understand that no profits/losses have been booked in 4Q08 for this contract. Has the deposit been booked in 1Q09 earnings? If so, how much? Currently, the payment covered the costs incurred, so there is no impact on our bottomline. 1

2 Conrad Werner, Morgan Stanley: Should we expect EPS growth for the group for the full year as well? Given the performance in 1Q09, should we expect Q&M margins at the high end of the 8-10% guided range? Is any of the negative cash flow due to customer deferrals of milestone payments in O&M? We had a good start in the first quarter. We benefited from a one-off item on the write-back of $14 million for taxation. However, even without this item, we would still have registered a growth. So we are hopeful of a growth in the year. On whether we can expect Q&M margins in the high end of the 8-10% range, again, we hope to be able to achieve improved margins. As you can see in the first quarter, our margins were an improvement over the whole of last year. In the first quarter, the margins achieved were 10.4% compared to the previous year s single digit margin. As for negative cash flow due to customer deferrals of milestone payments, this is not quite felt yet. We have largely normal operating cash flow. As I have said, we have working capital requirements for the first quarter, and that has resulted in our operating activities incurring an amount of $12 million. As for the rest, negative cash flow has been brought about by investing activities and CAPEX requirements in the Property Division and O&M Division Chris Sanda, Daiwa Institute of Research: Can you give any colour on how the O&M segment s customer queries are going? Are volumes down? Are customers asking for large discounts? I would say that the level of enquiries is down because of financing difficulties by speculative customers. So far, the customers expectations are that we would keep our prices competitive. Kelly Chia, OCBC: Could you please verify slide 43? In particular, can you help refresh our memory on the balance order for the year? Slide 43 shows the balance order for the next few years till The total balance order is $9.45 bn or $9.5 bn. For this year, we showed an order balance of $1.522bn. What we mean is that the balance order is the amount that has not been booked yet in terms of completion. We have a percentage completion method in our accounting, so if we complete all these projects, we expect to book another $1.5 bn. 2

3 Rigan Wong: May the management give an update on the potential geographies where there is significant potential for projects in infrastructure that Keppel is eyeing? CCW: For Keppel Integrated Engineering, our focus is on the markets where government projects and project financing opportunities are present. We continue to seek potential government projects where the government is able to finance them, as well as potential projects in developed economies where the project financing and the legal framework are well established, and the governments have the desire to fund such projects, like in the UK. The geographies we are focusing on remain to be in the Middle East where the governments still have very healthy fiscal balances. All the Gulf States have announced their budgets for the coming year which have exceeded the previous year s, which means that they are spending more on infrastructure. The other region we are focusing on is Europe where the governments have announced measures to kickstart the economy through infrastructure investments. Having said that, the overall market remains challenging because of the credit crunch. The financing issue has not been entirely addressed yet, because some of the projects which used to be economically possible or can be financed are now a challenge because of the higher cost in funding. So there are challenges, as well as opportunities. Cheryl Lee, UBS: I have a question regarding Keppel Merlimau Cogen. Is the improvement in market share sustainable in Management s view? On a year-on-year basis, infrastructure s net profit has improved by S$18m. Was the Cogen s improved performance the larger driver or booking in of the Doha project the larger driver? The answer is that both of them contributed equally. The Cogen power plant obviously showed substantial improvement over the previous year, but the first 20% completion of our Doha North project also contributed well. And that s the reason the Infrastructure business has finally achieved contribution of 10% to the Group s profit. 3

4 David Ng, Goldman Sachs Singapore: Can you please elaborate on the status of the rigs currently under construction for customer Skeie Drilling & Production? We understand Skeie Drilling & Production recently made an announcement for capital restructuring. Can you please elaborate on Keppel s involvement? Also, what is Keppel s ownership stake in Skeie Drilling & Production? The rigs are under construction. The projects have been rescheduled because of the market conditions. Keppel s ownership is way below 10%. Mayuko Tani, Nikkei: Could you please give us an update on the cancellation or renegotiation of the terms of existing orders in the O&M sector? TCH: Right now, apart from Scorpion, we do not have at this point in time any cancellation or renegotiation. Cheryl Lee, UBS: Regarding the Reflections project, what is the construction progress now? Petrobas has commented that they are seeking a further 28 drilling rigs, and are actively looking for production solutions. How quickly does Keppel expect these awards to occur? For O&M, how have prices for equipment such as drilling packages changed? Have price quotations for equipment fallen? TCH: During Petrobras recent visit to Singapore, they mentioned that they intended to order 28 drilling rigs and these are to be built in Brazil because of the local content requirements. We have a yard in Brazil, and have delivered some semi production units for Petrobras. Presently, we are still building one and upgrading another for them. Of course we look forward to either a negotiation or competitive bidding to build some of the 28 drilling rigs. In view of the falling commodity prices, bulk prices of steel and cables have seen significant reductions. Unfortunately, as far as equipment is concerned, we have seen only very marginal reductions. For Reflections, we have slightly more than 22% completed. The construction progress is smooth and according to schedule. We should expect completion to be some time in end 2011 and beginning

5 Nancy Wei, UOB Kay Hian Research: How much of 1Q09 s Q&M turnover of S$2.1 bn was due to shiprepair? Coming back to slide 43, can you explain the relatively low S$1.5 bn outstanding orders for the remaining 3Qs of 2009, compared with 1Q09 s O&M turnover of S$2.1 bn? We do not normally disclose the financial breakdown of our rigbuilding and repair businesses. Part of the repair is really FPSO conversion. On the second question, while there are projects which will be completed in 2009, as far as production revenue is concerned, for those projects that would be completed in 2010, and you see a big figure of $4.6 bn, those will also be chopped up as production revenue for So it doesn t mean that the production revenue for 2009 is only going to be that $1.5 bn. Because what we are going to deliver in 2010 will also have to be worked on in 2009, so production revenue will be chopped up to be combined with those that we deliver in Serene Lim, DMG and Partners: A question on Infrastructure. Could the management give any guidance on the EBIT margins for Infrastructure going forward? No, we cannot. Ashwin Sanketh, Macquarie Securities: Regarding O&M, in the situation where a client runs into funding difficulty, for example in the case of Scorpion, would you rather complete the rig at your cost and then market it, or market it as is? Vis-à-vis Skeie Drilling & Production, given their cash call and Keppel s ownership, would you be forced to contribute, regardless of the magnitude? Well, this is on a case-by-case basis. It depends on the conditions and whether there is a contract for the rig to be used, and the progress payment made. Each project would have to be evaluated on a case-by-case basis. Teo Hiang Boon, UOB Asset Management: How much of the $14 million tax benefit in 1Q09 is captured under the O&M PATMI? About $5 million. 5

6 Tsai Yuan Yiu, Nomura: Given that the shipyard capacity will gradually ease up going forward beyond 2010, compared to the tight capacity for the past years, would you expect the construction time of a new semi-submersible order to speed up, and therefore delivered earlier? If Petrobas awards a semi-submersible contract in June this year, what would your estimated delivery date be? TCH: Previous year s deliveries were long due mainly to the equipment supply. Of course, if Petrobas were to make an order now, depending on whether it is going to be built in Singapore or Brazil, the time taken is going to be different. Overall, I would say a lot depends on what kind of delivery we are going to get from our equipment suppliers. If the equipment can be procured and delivered earlier, our delivery can also be shortened by that length of time, be it 3 months or 6 months. David Ng, Goldman Sachs Singapore: A follow-up question how much has Keppel invested in Skeie Drilling & Production? How much additional capital is required given Skeie s recent capital restructuring? Has there been any asset write-down on the rig given the higher than expected construction costs and lower rig prices? We have less than 10% of the equity in Skeie Drilling & Production and the additional capital they are looking for in the market is about US$85 to $100 million. We don t foresee a write-down right now. <End of Q&A session> 6