KEPPEL CORPORATION LIMITED

Transcription

1 KEPPEL CORPORATION LIMITED Co. Reg. No N (Incorporated in the Republic of Singapore) SECOND QUARTER 2013 FINANCIAL STATEMENTS & DIVIDEND ANNOUNCEMENT TABLE OF CONTENTS Paragraph Description Page CHIEF EXECUTIVE OFFICER S ADDRESS I III FINANCIAL STATEMENTS & DIVIDEND ANNOUNCEMENT GROUP PROFIT AND LOSS ACCOUNT 1 2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4 3 BALANCE SHEETS 6 4 STATEMENTS OF CHANGES IN EQUITY 9 5 CONSOLIDATED STATEMENT OF CASH FLOWS 16 6 AUDIT 18 7 AUDITORS REPORT 18 8 ACCOUNTING POLICIES 18 9 CHANGES IN THE ACCOUNTING POLICIES REVIEW OF GROUP PERFORMANCE VARIANCE FROM FORECAST STATEMENT PROSPECTS DIVIDEND SEGMENT ANALYSIS REVIEW OF SEGMENT PERFORMANCE INTERESTED PERSON TRANSACTIONS 26 CONFIRMATION BY THE BOARD 27

2 KEPPEL CORPORATION LIMITED Address by Mr Choo Chiau Beng, Chief Executive Officer SECOND QUARTER AND FIRST HALF ENDED 30 JUNE 2013 Sluggish Global Outlook 1 The global economy has been lackluster, in spite of the initial anticipation of a gradual recovery. Earlier this month, the International Monetary Fund had trimmed its global economic growth estimates for 2013 from 3.3% to 3.1%. 2 Growth in the developed economies has been dampened by fears of the stimulus pull back in the US and protracted recession in several EU countries. 3 Emerging economies namely China, India and Brazil have also slowed down due to weaker domestic demand and consumption, and fewer exports. Conversely, Singapore s economy grew by 3.7% year-on-year in the second quarter of Supported by rising global energy demand, Brent crude price remained around US$100 per barrel. Performance Highlights 5 Keppel Corp s net profit for 1H2013 was $677 million, 47% lower than the same period last year. Our annualised ROE stood at 14.5%, and EVA declined to $377 million. 6 However, I would like to point out that excluding one-time gains from the sale of Reflections at Keppel Bay units and some investments, the performance of the first half of this year is comparable to that of the same period last year. 7 As such, I am pleased to announce that we will be making an interim distribution of about 20.8 cents per share to shareholders for the first half of This comprises a cash dividend of 10.0 cents and a dividend in-specie of Keppel REIT units equivalent to 10.8 cents per share. 8 The path ahead will be a challenging one, with the anemic global economy, unabated policy headwinds and keen competition. At Keppel, we will continue to fortify our strengths while keeping nimble and responsive as we navigate this uncertain business terrain. Business Overview Offshore & Marine 9 In the Offshore & Marine Division, fluctuating commodity prices have had some effect on oil price volatility in the near term. The longer term stress on the global supply of oil and gas however continues to bolster E&P projects, which have extended horizons of five to 10 years. 10 The industry fundamentals remain sound, backed by rising energy demand from emerging countries as well as depletion in existing oil fields. On the other hand, mounting competition from Korean and Chinese yards continues to suppress prices and margins for newbuild rigs. 11 Against this backdrop, Keppel Offshore & Marine continued to secure a fair share of new orders on acceptable terms. In the year-to-date, the company has secured S$3.5 billion worth of new contracts. 12 We continue to see encouraging demand from various quarters of the world including Mexico, Asia-Pacific and the North Sea. For the Mexican customers alone, we are constructing 9 KFELS B Class jackup rigs. I

3 13 As at end June 2013, our net orderbook stood at a healthy level of S$13.1 billion, with visibility into We are making good progress in terms of execution, and have delivered 13 out of 22 rigs scheduled for this year. 14 Innovation continues to be a driver of the offshore and marine industry, and we have been differentiating ourselves through proprietary technology. The KFELS B Class is today one of the world s leading jackup rig designs, and has contributed good value and margins to the company. A total of 65 such units have been ordered to date. 15 Building on the success of the KFELS B Class, we have also delivered our first KFELS Super A Class jackup designed for the UK sector of the North Sea. 16 In the deepwater segment, our DSS TM 38 Series of semis are winning market acceptance. Nine semis of this Series have been ordered since 2006, including the latest new contract from SOCAR in Azerbaijan. 17 We aim to develop more winning designs by working closely with the end-users of our products. I am pleased that our FLNG FEED study for Golar will be completed in 3Q2013, while our ice-class jackup design with ConocoPhillips will be ready at the end of the year. 18 Finally, after rounds of inputs from customers and oil companies, we have developed what we believe to be a compelling drillship solution for the market. We will be working hard in the year ahead to commercialise this new design. Infrastructure 19 Under the Infrastructure Division, we have recently announced the re-organising of Keppel Energy and Keppel Integrated Engineering into Keppel Infrastructure. 20 The new entity will focus on growing the power and gas business, as well as own and operate WTE facilities and provide related technology solutions. It will also seek out prospects to expand into complementary areas in the energy value chain. 21 Through Keppel Infrastructure, our businesses will be better aligned to our core strengths, enabling us to harness synergy between our operating units to pursue value-enhancing projects. 22 During the year, Keppel Merlimau Cogen s new 800MW power generation capacity was completed ahead of schedule and within-budget. Keppel DHCS also secured several contracts to provide district cooling services in Singapore. These include an award tender from JTC Corporation to design, build, own and operate a new district cooling systems plant in one-north. 23 Keppel T&T has also made headway with the expansion of its quality data centre portfolio and integrated logistics network. It has embarked on the development of Keppel Datahub 2 in Singapore, and through the Securus Fund, acquired the Almere Data Centre in Amsterdam. 24 Keppel T&T is growing its repute as quality logistics service provider in China. The company recently acquired the Sanshui Port in Guangzhou, its third integrated port logistics facility in the country. Property 25 In the Property Division, Keppel Land has been able to tap the Group s financial capacity to acquire strategic sites and projects in its core markets. II

4 26 In Singapore, it won the tender for a prime site in Tiong Bahru where it will develop 500 homes. Over in China, the company strengthened its presence in the key city of Shanghai with a quality site for landed homes in Sheshan, and a well-occupied commercial development in Jinqiao district in Pudong. 27 In spite of policy headwinds in Singapore and China, demand for quality homes remains resilient. The Property Division sold over 2,000 homes in the first half of 2013; this is the highest sales volume achieved on a year-on-year basis for the last two years. 28 Today, nearly five years after its groundbreaking, the Tianjin Eco-City has attracted over 4,000 residents and 900 registered companies, including MNCs. 29 Meanwhile, office occupancy levels and average rents in Singapore s CBD and Marina Bay area have held up well, supported by sustained demand from a diverse range of non-financial businesses. 30 We are always looking out for new prospects and sustainable platforms to grow our Property Division, one such avenue being our fund management business. To date, the combined assets under management by Keppel REIT and Alpha have risen steadily to S$17 billion. We will actively grow our fee-based income to capture greater value for the Group. Building the future 31 A capable and committed workforce with strong leaders who embrace Keppel s core values and culture is essential in shaping the Group s future. Our robust and systematic efforts to build a pipeline of high-calibre successors have come into fruition. 32 I am pleased to announce that from 1 January 2014, our CFO, Loh Chin Hua, who has been with the Group for almost 11 years, will succeed me as CEO of Keppel Corporation. 33 Chow Yew Yuen, currently Chief Operating Officer of Keppel O&M, who has been with Keppel for over 30 years, will succeed Tong Chong Heong as CEO on 1 February Both Chin Hua and YY Chow were identified and groomed, and I am glad that they have risen to the challenge. They have proven themselves to be highly capable and astute leaders with strong Keppel core values, vision and passion. The Group will benefit greatly from the diversity of expertise, experiences and attributes of our next-generation leaders. 35 To help ensure a smooth leadership transition, Chong Heong and I will respectively serve as Senior Advisors to the Boards of Keppel Corp and Keppel O&M after stepping down. The Company will also announce the appointment of the new CFO for Keppel Corp at an appropriate time. 36 Chong Heong and I, after serving Keppel for 43 and 42 years respectively, are happy and confident that the future of Keppel rests in good hands. Supported by their colleagues and teams, the new Keppel leaders will continue to take the Group from strength to strength. 37 With that, I shall now let Chin Hua take you through the Group s developments and financial performance for the second quarter of this year. Thank you. III

5 KEPPEL CORPORATION LIMITED Second Quarter 2013 Financial Statements and Dividend Announcement UNAUDITED RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 JUNE 2013 The Directors of Keppel Corporation Limited advise the following unaudited results of the Group for the second quarter and half year ended 30 June GROUP PROFIT AND LOSS ACCOUNT for the second quarter and half year ended 30 June Note Second Quarter Half Year +/- % +/- % Revenue 3,075,872 3,481, ,834,607 7,747, Materials & subcontract costs (i) (2,158,343) (2,409,458) (4,105,022) (5,216,094) Staff costs (ii) (372,925) (392,549) -5.0 (716,607) (761,620) -5.9 Depreciation & amortisation (59,344) (50,546) (113,361) (100,810) Other operating expenses (iii) (61,959) (19,370) (79,700) (113,302) Operating profit 423, , ,917 1,555, Investment income 319 2, ,079 2, Interest income 42,246 44, ,657 76, Interest expenses (iv) (38,778) (35,853) +8.2 (78,560) (66,735) Share of results of associated companies (v) 92,505 59, , , Profit before tax 519, , ,015,482 1,674, Taxation (1b) (96,909) (97,705) -0.8 (168,854) (252,485) Profit for the period 422, , ,628 1,421, Attributable to: Shareholders of the Company 346, , ,833 1,271, Non-controlling interests 75,835 61, , , , , ,628 1,421, Earnings per ordinary share - basic 19.2 cts 29.1 cts cts 71.0 cts diluted 19.0 cts 28.6 cts cts 70.2 cts Keppel Corporation Limited, Page 1 of 27

6 NOTES TO GROUP PROFIT AND LOSS ACCOUNT 1a. Pre-tax profit of the Group is arrived at after charging/(crediting) the following: Note Second Quarter Half Year +/- % +/- % Share-based payment expenses 8,619 7, ,828 15, Profit on sale of fixed assets (505) (449) (2,283) (410) Profit on sale of investments (vi) (56,759) NM (134,794) NM Provision/(write-back) - Stocks & work-in-progress 39 (2,168) NM (122) (3,088) Doubtful debts (vii) (525) (27,664) (251) (27,041) Bad debts (recovered)/written off (6) 13 NM Stocks written off/(recovered) 13 (8) NM Fair value loss/(gain) - Investments (viii) 7,562 2, (8,376) (7,778) Forward contracts (ix) 8,147 2, ,762 23, Financial derivatives (721) 2,269 NM (2,083) 2,816 NM Foreign exchange (gain)/loss (x) (4,726) 4,003 NM (20,900) 15,828 NM Write-back of provision for restructuring of operations and others (xi) (1,004) NM (26,831) NM NM Not Meaningful Note: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Materials & subcontract costs decreased mainly as a result of lower revenue from the Property Division and Offshore & Marine Division. Staff costs decreased due mainly to lower manpower cost in the Offshore & Marine Division. Lower other operating expenses for the half year was due mainly to foreign exchange gain in the current period compared to foreign exchange loss in the corresponding period in 2012 (Note (x)) and the write-back of provision for restructuring of operations and others (Note (xi)), partially offset by lower write-back of doubtful debts (Note (vii)). Interest expenses increased mainly as a result of higher borrowings. Share of profits of associated companies was higher due mainly to higher contribution from associated companies in the Property and Offshore & Marine Divisions. Profit on sale of investments in prior period was largely due to disposals of listed equities. Write-back of provision for doubtful debts was due to collection from delinquent customers. Fair value gain (mark-to-market) for the half year on investment portfolio held for trading was due to increase in stock prices. Hedging differential on forward exchange contracts was due to elapse of time and fluctuations in interest rate. Foreign exchange gain mainly arose from the revaluation of assets denominated in United States dollar, as a result of appreciation of United States dollar against Singapore dollar. The write-back was mainly in relation to the reversal of provision following the finalisation of the sales of the power barge in the Infrastructure Division. 1b. Taxation expenses were lower because of decreased profit and write-back of tax following finalisation of prior period s tax assessment. Keppel Corporation Limited, Page 2 of 27

7 1c. Earnings per ordinary share Earnings per ordinary share of the Group based on net profit attributable to shareholders:- Second Quarter Half Year +/-% +/-% (i) Based on weighted average number of shares 19.2 cts 29.1 cts cts 71.0 cts Weighted average number of shares ( 000) 1,805,089 1,792, ,805,089 1,792, (ii) On a fully diluted basis 19.0 cts 28.6 cts cts 70.2 cts Adjusted weighted average number of shares ('000) 1,823,464 1,809, ,823,464 1,809, d. There was no extraordinary item during the period. Keppel Corporation Limited, Page 3 of 27

8 2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the second quarter and half year ended 30 June Second Quarter Half Year +/- % +/- % Profit for the period 422, , ,628 1,421, Items that may be reclassified subsequently to profit & loss account: Available-for-sale assets - Fair value changes arising during the period (i) (14,866) (29,179) ,818 97, Realised and transferred to profit & loss account (ii) 8 (56,558) NM 8 (136,220) NM Cash flow hedges - Fair value changes arising during the period, net of tax (iii) 5,671 (91,208) NM (173,124) (60,028) Realised and transferred to profit & loss account (iv) 941 (12,438) NM 11,308 (7,118) NM Foreign exchange translation - Exchange differences arising during the period (v) (64,010) (64,886) ,049 (113,334) NM - Realised and transferred to profit & loss account (2,406) NM (2,130) NM Share of other comprehensive income/(losses) of associated companies - Available-for-sale assets 208 (2,332) NM 2,961 1, Cash flow hedges (653) NM - Foreign exchange translation 6,846 6, ,502 (2,211) NM Other comprehensive losses for the period, net of tax (64,913) (252,281) (16,760) (222,726) Total comprehensive income for the period 357, , ,868 1,198, Attributable to: Shareholders of the Company 293, , ,556 1,079, Non-controlling interests 63,907 59, , , NM Not Meaningful 357, , ,868 1,198, Note: (i) (ii) (iii) (iv) Fair value gain for the half year was attributable to increase in quoted prices of available-for-sale assets. These represented fair value changes on available-for-sale assets, which were transferred to profit & loss account upon realisation. Fair value loss for the half year was due mainly to the hedging differential on forward exchange contracts. These represented cash flow hedges, which were transferred to profit & loss account upon realisation. Keppel Corporation Limited, Page 4 of 27

9 (v) These exchange differences arose from the translation of financial statements of foreign operations whose functional currencies are different from that of the Group s presentation currency as well as from the translation of foreign currency loans that form part of the Group s net investment in foreign operations. The translation gains for half year 2013 arose largely from strengthening of foreign currencies, such as United States dollar, Renminbi and Euro against the Singapore dollar. The translation losses for 2Q 2013 arose largely from weakening of Brazilian Real and Australian dollar against the Singapore dollar. The translation losses for half year 2012 arose largely from weakening of foreign currencies, such as United States dollar, Renminbi, Brazilian Real and Euro against the Singapore dollar. The translation losses for 2Q 2012 arose largely from weakening of Brazilian Real and Euro against the Singapore dollar. Keppel Corporation Limited, Page 5 of 27

10 3. BALANCE SHEETS as at 30 June G r o u p C o m p a n y Share capital 1,200,219 1,123,590 1,200,219 1,123,590 Reserves 7,795,906 8,122,362 4,360,359 4,581,934 Share capital & reserves 8,996,125 9,245,952 5,560,578 5,705,524 Non-controlling interests 5,288,130 4,332,174 Capital employed 14,284,255 13,578,126 5,560,578 5,705,524 Represented by: Fixed assets 3,558,627 3,337, Investment properties 5,554,756 5,423,060 Subsidiaries 4,876,700 4,933,380 Associated companies 5,609,157 5,266,602 Investments 226, ,380 Long term assets 273, , Intangibles 104, ,608 15,326,688 14,501,529 4,877,494 4,934,107 Current assets Stocks & work-in-progress in excess of related billings 7,881,473 7,442,713 Amounts due from: - subsidiaries 3,586,095 2,655,295 - associated companies 719, ,737 2,929 1,719 Debtors 2,870,275 2,057,270 50, ,737 Short term investments 490, ,107 Bank balances, deposits & cash 3,865,972 4,055,176 3,867 3,773 15,827,937 14,669,003 3,643,514 2,818,524 Current liabilities Creditors 5,314,756 5,535, , ,872 Billings on work-in-progress in excess of related costs 1,854,174 1,619,475 Provisions 118,572 74,874 Amounts due to: - subsidiaries 1,108, ,206 - associated companies 132,353 63,495 1 Term loans 639,125 1,005,554 77,409 Taxation 531, ,862 20,407 21,097 8,590,106 9,064,221 1,455, ,175 Net current assets 7,237,831 5,604,782 2,188,016 2,276,349 Non-current liabilities Term loans 7,937,453 6,202,345 1,500,000 1,500,000 Deferred taxation 342, ,840 4,932 4,932 8,280,264 6,528,185 1,504,932 1,504,932 Net assets 14,284,255 13,578,126 5,560,578 5,705,524 Group net debt 4,710,606 3,152,723 n.a. n.a. Group net gearing ratio 0.33x 0.23x n.a. n.a. Keppel Corporation Limited, Page 6 of 27

11 NOTES TO BALANCE SHEETS 3a. Group s borrowings and debt securities (i) Amount repayable in one year or less, or on demand As at As at Secured Unsecured Secured Unsecured 54, , , ,723 (ii) Amount repayable after one year As at As at Secured Unsecured Secured Unsecured 1,484,562 6,452,891 1,219,852 4,982,493 (iii) Details of any collateral Certain subsidiaries of the Company pledged their assets in order to obtain loans from financial institutions. The Group has mortgaged certain properties and assets of up to an aggregate amount of $3,965,276,000 (31 December 2012: $3,104,674,000) to banks for loan facilities. 3b. Net asset value Group Company /-% /-% Net asset value per ordinary share * $4.98 $ $3.08 $ Net tangible asset per ordinary share * $4.92 $ $3.08 $ * Based on share capital of 1,807,240,223 ordinary shares as at the end of the period (31 December 2012: 1,797,607,004 ordinary shares). Keppel Corporation Limited, Page 7 of 27

12 3c. Balance sheet analysis Group shareholders funds decreased from $9.25 billion at 31 December 2012 to $9.0 billion at 30 June The decrease was mainly attributable to fair value loss on cash flow hedges and payment of final dividend of 27.0 cents per share and distribution of dividends in specie of Keppel REIT units equivalent to 28.6 cents per share in respect of financial year 2012, partially offset by retained profits for the period and foreign exchange translation gains. Group total assets of $31.15 billion at 30 June 2013 were $1.98 billion or 6.8% higher than the previous year end. Increase in fixed assets was largely due to capital expenditure for the expansion of Keppel Merlimau Cogen power plant, acquisition of an industrial building by Infrastructure Division for development of a new data centre and other operational capex. Associated companies increased due mainly to the acquisition of 42.5% interest in Equity Rainbow II Pte Ltd ( Equity Rainbow ), which has an interest in a retail mall, Life Jinqiao, Shanghai, China, and further investments in existing companies. Higher stocks & work-inprogress were due to land acquisition costs and development expenditure incurred for projects in the Property Division, partly offset by lower work-in-progress for the Offshore & Marine Division. Higher level of debtors was largely due to higher billings from Offshore & Marine Division and advance payments for properties acquisitions from Property Division. Group total liabilities of $16.87 billion at 30 June 2013 were $1.28 billion or 8.2% higher than the previous year end. Higher level of term loans was due to increased bank borrowings for working capital requirements, operational capital expenditure and acquisitions. These were partly offset by decrease in creditors from Offshore & Marine and Infrastructure Divisions. Group net debt at 30 June 2013 was $4.71 billion as compared to group net debt of $3.15 billion at 31 December This was due mainly to capital expenditure, investment in associated companies and dividend payment. Keppel Corporation Limited, Page 8 of 27

13 4. STATEMENTS OF CHANGES IN EQUITY for the second quarter and half year ended 30 June 4a. Statement of changes in equity of the Group Share Capital Attributable to owners of the Company Foreign Exchange Capital Revenue Translation Reserves Reserves Account Share Capital & Reserves Noncontrolling Interests Capital Employed 2013 As at 1 January 1,123, ,263 7,815,216 (375,117) 9,245,952 4,332,174 13,578,126 Total comprehensive income for first quarter Profit for first quarter 356, ,984 66, ,944 Other comprehensive income * (133,758) 129,466 (4,292) 52,445 48,153 Total comprehensive income for first quarter (133,758) 356, , , , ,097 Transactions with owners, recognised directly in equity Contributions by and distributions to owners Share-based payment 7,216 7,216 (191) 7,025 Dividend paid to non-controlling shareholders (23,755) (23,755) Cash subscribed by non-controlling shareholders 55,208 55,208 Shares issued 58,853 (42,231) 16,622 16,622 Total contributions by and distributions to owners 58,853 (35,015) 23,838 31,262 55,100 Changes in ownership interests in subsidiaries Disposal of interest in a subsidiary company without loss of control (1,599) (1,599) 101,349 99,750 Total change in ownership interests in subsidiaries (1,599) (1,599) 101,349 99,750 Total transactions with owners 58,853 (35,015) (1,599) 22, , ,850 As at 31 March 1,182, ,490 8,170,601 (245,651) 9,620,883 4,584,190 14,205,073 Total comprehensive income for second quarter Profit for second quarter 346, ,849 75, ,684 Other comprehensive income * (9,703) (43,282) (52,985) (11,928) (64,913) Total comprehensive income for second quarter (9,703) 346,849 (43,282) 293,864 63, ,771 Transactions with owners, recognised directly in equity Contributions by and distributions to owners Dividends paid (1,004,446) (1,004,446) (1,004,446) Share-based payment 7,751 7, ,354 Transfer of statutory, capital and other reserves to revenue reserves 5,710 (5,710) Dividend paid to non-controlling shareholders (102,915) (102,915) Cash subscribed by non-controlling shareholders 10,272 10,272 Shares issued 17,776 (73) 17,703 17,703 Total contributions by and distributions to owners 17,776 7,678 (998,736) (5,710) (978,992) (92,040) (1,071,032) Keppel Corporation Limited, Page 9 of 27

14 4a. Statement of changes in equity of the Group (cont d) 2013 Share Capital Attributable to owners of the Company Foreign Exchange Capital Revenue Translation Reserves Reserves Account Share Capital & Reserves Noncontrolling Interests Capital Employed Changes in ownership interests in subsidiaries Disposal of interest in a subsidiary company without loss of control 60,370 60, , ,443 Total change in ownership interests in subsidiaries 60,370 60, , ,443 Total transactions with owners 17,776 7,678 (938,366) (5,710) (918,622) 640,033 (278,589) As at 30 June 1,200, ,465 7,579,084 (294,643) 8,996,125 5,288,130 14,284,255 * Details of other comprehensive income have been included in the consolidated statement of comprehensive income. Keppel Corporation Limited, Page 10 of 27

15 4a. Statement of changes in equity of the Group (cont d) Share Capital Attributable to owners of the Company Foreign Exchange Capital Revenue Translation Reserves Reserves Account Share Capital & Reserves Noncontrolling Interests Capital Employed 2012 As at 1 January 1,016, ,357 6,358,404 (135,498) 7,699,375 4,061,920 11,761,295 Total comprehensive income for first quarter Profit for first quarter 750, ,769 88, ,666 Other comprehensive income * 86,136 (27,973) 58,163 (28,608) 29,555 Total comprehensive income for first quarter 86, ,769 (27,973) 808,932 60, ,221 Transactions with owners, recognised directly in equity Contributions by and distributions to owners Share-based payment 7,496 7, ,888 Dividend paid to non-controlling shareholders (19,723) (19,723) Cash subscribed by non-controlling shareholders 8,822 8,822 Shares issued 67,770 (24,680) 43,090 43,090 Total contributions by and distributions to owners 67,770 (17,184) 50,586 (10,509) 40,077 Changes in ownership interests in subsidiaries Acquisition of subsidiaries 187, ,342 Total change in ownership interests in subsidiaries 187, ,342 Total transactions with owners 67,770 (17,184) 50, , ,419 As at 31 March 1,083, ,309 7,109,173 (163,471) 8,558,893 4,299,042 12,857,935 Total comprehensive income for second quarter Profit for second quarter 520, ,948 61, ,059 Other comprehensive income * (188,836) (61,793) (250,629) (1,652) (252,281) Total comprehensive income for second quarter (188,836) 520,948 (61,793) 270,319 59, ,778 Transactions with owners, recognised directly in equity Contributions by and distributions to owners Dividend paid (466,423) (466,423) (466,423) Share-based payment 7,136 7, ,532 Transfer of statutory, capital and other reserves to revenue reserves 66 (66) Dividend paid to non-controlling shareholders (155,090) (155,090) Cash subscribed by non-controlling shareholders 85,876 85,876 Shares issued 14,096 (70) 14,026 14,026 Total contributions by and distributions to owners 14,096 7,132 (466,489) (445,261) (68,818) (514,079) Keppel Corporation Limited, Page 11 of 27

16 4a. Statement of changes in equity of the Group (cont d) 2012 Share Capital Attributable to owners of the Company Foreign Exchange Capital Revenue Translation Reserves Reserves Account Share Capital & Reserves Noncontrolling Interests Capital Employed Changes in ownership interests in subsidiaries Acquisition of additional interest in subsidiaries 1,242 1,242 (210,161) (208,919) Total change in ownership interests in subsidiaries 1,242 1,242 (210,161) (208,919) Total transactions with owners 14,096 7,132 (465,247) (444,019) (278,979) (722,998) As at 30 June 1,097, ,605 7,164,874 (225,264) 8,385,193 4,079,522 12,464,715 * Details of other comprehensive income have been included in the consolidated statement of comprehensive income. Keppel Corporation Limited, Page 12 of 27

17 4b. Statement of changes in equity of the Company Share Capital Capital Reserves Revenue Reserves Total 2013 As at 1 January 1,123, ,396 4,401,538 5,705,524 Profit / Total comprehensive income for first quarter 74,307 74,307 Transactions with owners, recognised directly in equity Share-based payment 7,407 7,407 Shares issued 58,853 (42,231) 16,622 Total transactions with owners 58,853 (34,824) 24,029 As at 31 March 1,182, ,572 4,475,845 5,803,860 Profit / Total comprehensive income for second quarter 736, ,538 Transactions with owners, recognised directly in equity Dividend paid (1,004,446) (1,004,446) Share-based payment 6,923 6,923 Shares issued 17,776 (73) 17,703 Total transactions with owners 17,776 6,850 (1,004,446) (979,820) As at 30 June 1,200, ,422 4,207,937 5,560, As at 1 January 1,016, ,496 4,031,956 5,209,564 Profit / Total comprehensive income for first quarter 375, ,234 Transactions with owners, recognised directly in equity Share-based payment 6,941 6,941 Shares issued 67,770 (24,680) 43,090 Total transactions with owners 67,770 (17,739) 50,031 As at 31 March 1,083, ,757 4,407,190 5,634,829 Profit / Total comprehensive income for second quarter 770, ,624 Transactions with owners, recognised directly in equity Dividend paid (466,423) (466,423) Share-based payment 6,497 6,497 Shares issued 14,096 (70) 14,026 Total transactions with owners 14,096 6,427 (466,423) (445,900) As at 30 June 1,097, ,184 4,711,391 5,959,553 Keppel Corporation Limited, Page 13 of 27

18 4c. Share capital Issued share capital and treasury shares Number of shares As at 1 January ,797,607,004 Issue of shares under share option scheme 2,207,830 Issue of shares under restricted share plan and performance share plan 4,995,035 As at 31 March ,804,809,869 Issue of shares under share option scheme 2,423,070 Issue of shares under restricted share plan 7,284 As at 30 June ,807,240,223 As at 30 June 2013, the Company is not holding any treasury shares (30 June 2012: Nil). No sales, transfers, disposal, cancellation and/or use of treasury shares took place during the half year ended 30 June Share options As at 30 June 2013, there were unexercised options for 25,655,065 of unissued ordinary shares (30 June 2012: 33,582,385 ordinary shares) under the KCL Share Options Scheme. 28,600 unexercised options were cancelled in the six months ended 30 June 2013 (30 June 2012: unexercised options for 127,600 unissued ordinary shares cancelled). KCL Performance Share Plan ( KCL PSP ) As at 30 June 2013, the number of contingent shares granted but not released were 2,284,198 (30 June 2012: 2,168,000) for KCL PSP. Based on the achievement factor, the actual release of the awards in ordinary shares of the Company could range from zero to a maximum of 3,426,297 under KCL PSP. KCL Restricted Share Plan ( KCL RSP ) As at 30 June 2013, the number of contingent shares granted but not released were 4,402,053 (30 June 2012: 4,159,000). Based on the achievement factor, the actual release of the awards in ordinary shares of the Company could be zero or 4,402,053 under KCL RSP. As at 30 June 2013, the number of awards released but not vested was 4,076,450 (30 June 2012: 4,025,638) for KCL RSP. The movements in the number of shares under KCL RSP and PSP are as follows: Contingent awards: Date of Grant At KCL PSP Contingent awards granted Number of shares Adjustment upon Other release Released Cancelled adjustments At , ,100 (1,092,100) ,000 16, , ,314 19, , ,000 21, ,970 KCL RSP 2,129, , ,100 (1,092,100) 57,884 2,284, ,103,656 (4,075,068) (28,588) ,300,500 (10,260) 111,813 4,402,053 4,103,656 4,300,500 (4,075,068) (38,848) 111,813 4,402,053 Keppel Corporation Limited, Page 14 of 27

19 Awards released but not vested: Number of shares Date of Grant At Released Vested Cancelled KCL PSP Other adjustments At ,092,100 (1,092,100) KCL RSP 1,092,100 (1,092,100) ,278,035 (1,248,335) (29,700) ,677,411 (1,315,762) (58,452) 33,988 1,337, ,075,068 (1,346,122) (59,407) 69,726 2,739,265 3,955,446 4,075,068 (3,910,219) (147,559) 103,714 4,076,450 4d. Capital reserves Group Company Share option and share plan reserve 170, , , ,184 Fair value reserve 201, ,210 Hedging reserve 41,395 (70,160) Bonus issue by subsidiaries 40,000 40,000 Others 57,899 52, , , , ,184 Keppel Corporation Limited, Page 15 of 27

20 5. CONSOLIDATED STATEMENT OF CASH FLOWS for the second quarter and half year ended 30 June Note Second Quarter Half Year OPERATING ACTIVITIES Operating profit 423, , ,917 1,555,646 Adjustments: Depreciation and amortisation 59,344 50, , ,810 Share-based payment expenses 8,619 7,492 15,828 15,466 Profit on sale of fixed assets (505) (449) (2,283) (410) Write-back of provision for restructuring of operations and others (1,004) (26,831) Operational cash flow before changes in working 489, , ,992 1,671,512 capital Working capital changes: Stocks & work-in-progress 64,320 (518,886) (219,232) (778,020) Debtors (796,238) 261,991 (1,072,186) (469,585) Creditors (35,584) 132,999 (188,653) 80,777 Investments 19,839 19,159 (56,336) 238,933 Advances to associated companies 35,317 (65,337) 46,778 (115,216) Translation of foreign subsidiaries 31,732 (6,911) 28,270 2,744 (190,859) 490,550 (541,367) 631,145 Interest received 42,246 44,006 81,657 76,087 Interest paid (38,778) (35,853) (78,560) (66,735) Income taxes paid, net of refunds received (289,921) (134,616) (356,918) (168,782) Net cash (used in)/from operating activities (477,312) 364,087 (895,188) 471,715 INVESTING ACTIVITIES Acquisition of subsidiary 5a (44,461) (44,461) Acquisition and further investment in associated companies (61,774) (60,003) (288,443) (165,513) Acquisition of fixed assets and investment properties (204,385) (219,869) (342,610) (418,909) Proceeds from disposal of fixed assets 20,219 10,319 35,439 11,152 Dividends received from investments and associated companies 59,270 40,102 94,461 81,076 Net cash used in investing activities (231,131) (229,451) (545,614) (492,194) FINANCING ACTIVITIES Acquisition of additional shares in subsidiaries (129,786) (129,786) Proceeds from share issues 17,703 14,026 34,325 57,116 Proceeds from non-controlling shareholders of subsidiaries 10,272 5,621 65,480 14,443 Proceeds from disposal of interest in a subsidiary 275, ,546 Proceeds from term loans 1,028, ,976 1,785,729 1,416,780 Repayment of term loans (178,119) (83,595) (455,050) (109,202) Dividend paid to shareholders of the Company (487,771) (466,423) (487,771) (466,423) Dividend paid to non-controlling shareholders of subsidiaries (102,915) (145,035) (126,670) (164,758) Net cash from financing activities 563, ,784 1,191, ,170 Net (decrease)/increase in cash and cash equivalents (144,749) 285,420 (249,213) 597,691 Cash and cash equivalents as at beginning of period 4,054,695 3,294,757 4,055,176 3,020,454 Effects of exchange rate changes on the balance of cash held in foreign currencies (43,974) (44,144) 60,009 (82,112) Cash and cash equivalents as at end of period 5b 3,865,972 3,536,033 3,865,972 3,536,033 Free cash flow (708,443) 134,636 (1,440,802) (20,479) Keppel Corporation Limited, Page 16 of 27

21 NOTES TO CONSOLIDATED STATEMENT OF CASH FLOWS 5a. Acquisition of subsidiary During the financial period, the fair values of the net assets of subsidiary acquired were as follows: Second Quarter $ 000 $ 000 $ 000 Half Year $ 000 Fixed assets Investment properties 133, , ,931 Debtors Bank balances and cash 3,037 3, Creditors (4,683) (4,683) (72,804) Shareholders loans (2,000) (2,000) Bank borrowings (38,000) (38,000) Current and deferred taxation (877) (877) (115,228) Total net identifiable assets at fair value 90,996 90, ,564 Non-controlling interests measured at non-controlling interests proportionate share of the net assets (187,342) Amount previously accounted for as an associated company (45,498) (45,498) Net assets acquired 45,498 45, ,222 Assumption of shareholders loans 2,000 2,000 Total purchase consideration 47,498 47, ,222 Less: Advance payment made in prior year (207,930) Less: Bank balances and cash acquired (3,037) (3,037) (292) Cash flow on acquisition net of cash acquired 44,461 44,461 5b. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents in the consolidated statement of cash flows comprise the following balance sheet amounts: Second Quarter Half Year Bank balances, deposits and cash 3,865,972 3,548,953 3,865,972 3,548,953 Bank overdrafts (12,920) (12,920) 3,865,972 3,536,033 3,865,972 3,536,033 Keppel Corporation Limited, Page 17 of 27

22 5c. Cash flow analysis (i) Second Quarter Net cash used in operating activities for the quarter was $477 million compared to net cash from operating activities of $364 million for the corresponding quarter last year. This was mainly due to lower operational cash inflow and higher cash outflow from working capital requirements. Net cash used in investment activities for the quarter was $231 million. The Group spent $310 million on acquisitions and operational capex. This comprised principally further investment in associated companies, capital expenditure for the expansion of Keppel Merlimau Cogen power plant, acquisition of an industrial building by Infrastructure Division for development of a new data centre and other operational capex. Divestment and dividend income totalled $79 million. Free cash flow was negative $708 million for the quarter compared to positive $135 million for the corresponding quarter last year. (ii) Half Year Net cash used in operating activities for the half year was $895 million compared to net cash from operating activities of $472 million for the corresponding period last year. This was mainly due to lower operational cash inflow and higher cash outflow from working capital requirements. Net cash used in investment activities for the half year was $546 million. The Group spent $676 million on acquisitions and operational capex. This comprised principally acquisition of an associated company, Equity Rainbow, further investment in associated companies, capital expenditure for the expansion of Keppel Merlimau Cogen power plant, acquisition of an industrial building by Infrastructure Division for development of a new data centre and other operational capex. Divestment and dividend income totalled $130 million. Free cash flow for the half year was negative $1,441 million compared to negative $20 million for the corresponding period last year. 6. AUDIT The financial statements have not been audited nor reviewed by our auditors. 7. AUDITORS' REPORT Not applicable 8. ACCOUNTING POLICIES Except as disclosed in paragraph 9 below, the Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period compared with those of the audited financial statements as at 31 December CHANGES IN THE ACCOUNTING POLICIES The Group adopted the new/revised FRS that are effective for annual periods beginning on or after 1 January Changes to the Group s accounting policies have been made as required, in accordance with the transitional provisions in the respective FRS. The following are the new or amended FRS that are relevant to the Group: Amendments to FRS 1 Presentation of Items of Other Comprehensive Income Revised FRS 19 Employee Benefits FRS 113 Fair Value Measurement Amendments to FRS 107 Disclosures - Offsetting Financial Assets and Financial Liabilities Improvements to FRSs Amendments to FRS 1 Presentation of Financial Statements - Amendments to FRS 16 Property, Plant and Equipment - Amendments to FRS 32 Financial Instruments: Presentation Keppel Corporation Limited, Page 18 of 27

23 The adoption of the above amended FRS did not have any significant impact on the financial statements of the Group, except for the following: Amendments to FRS 1 Presentation of Items of Other Comprehensive Income The Amendments to FRS 1 change the grouping of items presented in other comprehensive income. Items that can be reclassified to profit or loss at a future point in time will be presented separately from items which will never be reclassified. As the amendments only affect the presentations of items that are already recognised in other comprehensive income, there is no impact on the Group s financial position and financial performance upon adoption of these amendments. FRS 113 Fair Value Measurements FRS 113 provides a single source of guidance for all fair value measurements. FRS 113 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under FRS when fair value is required or permitted by FRS. The Group s policy is to revalue its investment properties on an annual basis. Keppel Corporation Limited, Page 19 of 27

24 10. REVIEW OF GROUP PERFORMANCE Group net profit for the half year ended 30 June 2013 was $704 million as compared to $1,272 million for the corresponding period in Earnings per share decreased by 45% to 39.0 cents. Annualised return on equity was 14.8% and Economic Value Added had reduced by $648 million to $404 million. For the second quarter, Group revenue of $3,076 million was 12% lower than the same quarter in 2012 due mainly to reduced revenue from Offshore & Marine and Property Divisions, partially offset by higher revenue from Infrastructure Division. Group net profit of $347 million was 33% below that of the same period in 2012 due mainly to lower contribution from Offshore & Marine, Property and Investments Divisions eased by an increase in net profit from Infrastructure Division. Group revenue of $5,835 million for the half year to-date decreased by 25% from that of the half year ended 30 June Revenue from Offshore & Marine Division declined by $508 million or 13% to $3,520 million due mainly to lower volume of work. Major jobs completed in the first half include 11 jack-up rigs, a semi-submersible and a drillship upgrade. Revenue from Infrastructure Division improved by 12% to $1,607 million. Higher revenue contributed by the co-generation power plant in Singapore was partly offset by revenue contraction from Engineering, Procurement and Construction (EPC) contracts. Revenue from Property Division of $698 million fell by $1,455 million or 68% mainly as a result of drop in revenue recognition from sales of Reflections at Keppel Bay units arising from the deliveries of residential units sold under the deferred payment scheme in the comparative period in 2012 which will not be repeated in At the pre-tax level, Group profit of $1,015 million was 39% below that of the same period in The Offshore & Marine Division reported pre-tax profit of $572 million, 8.2% lower than in the corresponding period in 2012, as a consequence of decline in revenue. Profit from Infrastructure Division picked up by $45 million to $121 million due mainly to higher contribution from the power and gas business, including the reversal of provision following the finalisation of the sale of the power barge, partially offset by losses from the EPC contracts. Profit from Property Division of $288 million was 65% lower. In the first half of 2012, Reflections at Keppel Bay recognised a higher level of profits as it benefited from revenue recognition from the deliveries of residential units sold under the deferred payment scheme. Profit from Investments decreased due to prior period s profit on disposal of investments. After taking into account income tax expenses and non-controlling interests, net profit attributable to shareholders was $704 million. Offshore & Marine Division was the largest contributor to Group net profit with 63% share, followed by Property Division with 21% share and Infrastructure Division with 13% share. Keppel Corporation Limited, Page 20 of 27

25 11. VARIANCE FROM FORECAST STATEMENT No forecast was previously provided. 12. PROSPECTS Offshore & Marine Division secured $3.0 billion of new orders in the first half of the year, double that achieved during the corresponding period in Its healthy net order book stood at $13.1 billion with deliveries extending into With demand for rigs expected to remain strong, the Division continues to see good prospects for the Offshore & Marine industry. The Division will maintain its market leadership through execution excellence and enhancing its engineering and design capabilities. In the Infrastructure Division, Keppel Infrastructure will continue to grow its power and gas, environmental and energy efficiency businesses. The expansion of the Keppel Merlimau Cogen power plant will allow it to grow its existing domestic energy business. At the same time, it will seek to complete its ongoing projects efficiently. In addition, expansion of Keppel Telecommunications & Transportation s logistics businesses and growth of its data centres portfolio remain another of the Division s goals. During the first half of 2013, the Property Division sold about 210 residential units in Singapore. In addition, the Division is planning the launch of its residential development in Tanah Merah during the second half of Demand for Grade A office space remains strong. Marina Bay Financial Centre Tower 3 is about 90% committed to-date. In China, about 1,940 residential units had been sold. In the second quarter of 2013, the Division acquired a site in Shanghai s Sheshan area for development of landed properties. Keppel REIT has also enlarged its portfolio with the recent acquisition of a 50% interest in a premium office building in Melbourne, Australia. Alpha Asia Macro Trends Fund II achieved a final closing of US$1.65 billion, exceeding its initial target of US$1 billion. Overall, the Division continues to maintain its focus on its two core markets of Singapore and China while strengthening its presence in Vietnam and Indonesia. At the same time, the Group will grow its fund management business for a sustainable income stream. The decline of the US economy and slowdown in growth of Brazil, China and India negated the effects from the improvements in the Eurozone sovereign debt situation. Through this continuing uncertain environment, the Group will remain focus on our core competencies to grow sustainable businesses and create value to shape the future. Keppel Corporation Limited, Page 21 of 27

26 13. DIVIDEND 13a. Current Financial Period Reported On Any dividend recommended for the current financial period reported on? Yes Name of Dividend Dividend type Dividend per share Tax rate Interim Cash 10.0 cents Tax exempt Cash Dividend The Directors are pleased to declare a tax exempt one-tier interim dividend of 10.0 cents per share (2012: 18.0 cents per share tax exempt one-tier). The payment of the interim dividend will be announced at a later date. Special Dividend In Specie The Directors are also pleased to recommend a special dividend in specie of eight (8) Keppel REIT units for every one hundred (100) shares in the Company ( Proposed Distribution ). The details of the Proposed Distribution are in the announcement dated 18 July 2013 ( Announcement ). The Proposed Distribution value is equivalent to approximately 10.8 cents per share tax exempt one-tier. The Proposed Distribution is conditional upon certain approvals being obtained as described in the Announcement. A circular to Shareholders in relation to the Proposed Distribution, together with a notice of the Extraordinary General Meeting to be convened, will be dispatched to Shareholders in due course. 13b. Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Yes Name of Dividend Dividend type Dividend per share Tax rate Interim Cash 18.0 cents Tax exempt 13c. Date Payable The date payable will be announced at a later date. 13d. Books Closure Date The books closure date will be announced at a later date. Keppel Corporation Limited, Page 22 of 27

27 14. SEGMENT ANALYSIS Half year ended 30 June 2013 Offshore & Marine Infrastructure Property Investments Elimination Total Revenue External sales 3,519,324 1,607, ,249 9,804 5,834,607 Inter-segment sales 3,524 47,789 44,711 4,940 (100,964) Total 3,522,848 1,655, ,960 14,744 (100,964) 5,834,607 Segment Results Operating profit 496, , ,562 9,762 5, ,917 Investment income 579 2,500 3,079 Interest income 35, ,224 70,085 (64,949) 81,657 Interest expenses (7,382) (8,072) (56,611) (65,830) 59,335 (78,560) Share of results of associated companies 46,309 15, ,959 20, ,389 Profit before tax 571, , ,634 34,932 1,015,482 Taxation (109,621) (25,081) (24,333) (9,819) (168,854) Profit for the period 462,035 96, ,301 25, ,628 Attributable to: Shareholders of Company 445,274 89, ,713 22, ,833 Non-controlling interests 16,761 6, ,588 3, , ,035 96, ,301 25, ,628 Other Information Segment assets 7,775,846 3,591,460 19,574,425 8,059,137 (7,846,243) 31,154,625 Segment liabilities 5,693,713 2,728,990 9,594,865 6,699,045 (7,846,243) 16,870,370 Net assets 2,082, ,470 9,979,560 1,360,092 14,284,255 Investment in associated companies 479, ,527 4,155, ,278 5,609,157 Additions to non-current assets 157, , , ,053 Depreciation and amortisation 68,134 31,835 13, ,361 Geographical Information Singapore Far East & Other ASEAN Countries Americas Other Countries Elimination Total External sales 4,436, , , ,575 5,834,607 Non-current assets 11,076,438 2,648, , ,852 14,826,980 Keppel Corporation Limited, Page 23 of 27

28 Half year ended 30 June 2012 Offshore & Marine Infrastructure Property Investments Elimination Total Revenue External sales 4,028,161 1,437,579 2,153, ,234 7,747,472 Inter-segment sales 88,848 32,568 29,846 (151,262) Total 4,028,161 1,526,427 2,186, ,080 (151,262) 7,747,472 Segment Results Operating profit 570,041 71, , ,511 (7,498) 1,555,646 Investment income 1,140 1,662 2,802 Interest income 37,699 1,201 35,566 52,260 (50,639) 76,087 Interest expenses (4,104) (8,612) (63,753) (48,403) 58,137 (66,735) Share of results of associated companies 18,425 11,712 53,655 22, ,410 Profit before tax 623,201 76, , ,986 1,674,210 Taxation (127,197) (12,893) (123,671) 11,276 (252,485) Profit for the period 496,004 63, , ,262 1,421,725 Attributable to: Shareholders of Company 484,121 57, , ,734 1,271,717 Non-controlling interests 11,883 6, , , ,004 63, , ,262 1,421,725 Other Information Segment assets 7,138,006 3,117,319 16,920,708 5,836,668 (6,179,745) 26,832,956 Segment liabilities 5,254,341 2,321,286 9,423,844 3,548,515 (6,179,745) 14,368,241 Net assets 1,883, ,033 7,496,864 2,288,153 12,464,715 Investment in associated companies 394, ,227 3,492, ,881 4,643,013 Additions to non-current assets 158, , , ,422 Depreciation and amortisation 66,287 27,046 7, ,810 Geographical Information Singapore Far East & Other ASEAN Countries Americas Other Countries Elimination Total External sales 6,341, , , ,057 7,747,472 Non-current assets 9,906,846 2,101, , ,692 12,946,723 Note: (a) The Group is organised into business units based on their products and services, and has four reportable operating segments: Offshore & Marine, Infrastructure, Property and Investments. The Investments Division consists mainly of the Group's investments in k1 Ventures Ltd, M1 Limited and equities. (b) Pricing of inter-segment goods and services is at fair market value. (c) Other than Singapore, no single country accounted for 10% or more of the Group s revenue for the half year 2013 and Keppel Corporation Limited, Page 24 of 27

29 15. REVIEW OF SEGMENT PERFORMANCE 15a. Revenue by Segments Group revenue of $5,835 million was $1,912 million or 25% below that of corresponding period in Revenue from Offshore & Marine Division of $3,520 million was $508 million or 13% lower due to decline in volume of work. Revenue from Infrastructure Division of $1,607 million was $169 million or 12% higher due mainly to higher revenue generated by the co-generation power plant in Singapore. Revenue from Property Division of $698 million fell by $1,455 million or 68% due largely to drop in revenue recognition from sales of Reflections at Keppel Bay units as a result of the delivery of residential units sold under the deferred payment scheme in the comparative period in b. Net profit by Segments Group net profit was $704 million for the first half in 2013 as compared to $1,272 million for the corresponding period in Profit from Offshore & Marine Division of $445 million was $39 million or 8% lower while that from Infrastructure Division of $90 million was $33 million or 58% higher. Contribution from Infrastructure Division included the reversal of provision following the finalisation of the sales of the power barge. Profit from Property Division of $147 million declined by $422 million or 74% due largely to reduced contribution from Reflections at Keppel Bay. Profit from Investments decreased due to prior period s profit on disposal of investments. Offshore & Marine Division was the largest contributor to Group net profit with 63% share, followed by Property Division with 21% share and Infrastructure Division with 13% share. 15c. Revenue by Geographical Segments Revenue from Singapore of $4,436 million was $1,906 million lower, due largely to lower revenue recognition from Reflections at Keppel Bay. Lower revenue from Far East & Other ASEAN Countries mainly came from the Offshore and Marine Division due to lower volume of work. Higher revenue from Americas mainly arose from the Offshore & Marine Division. Keppel Corporation Limited, Page 25 of 27

30 16. INTERESTED PERSON TRANSACTIONS The Group has obtained a general mandate from shareholders of the Company for interested person transactions in the Annual General Meeting held on 19 April During the financial period, the following interested person transactions were entered into by the Group: Name of Interested Person Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) Half Year Half Year Aggregate value of all interested person transactions conducted under a shareholders' mandate pursuant to Rule 920 of the SGX Listing Manual. (excluding transactions less than $100,000) Half Year Half Year Transaction for the Sale of Goods and Services CapitaLand Group 5,400 4,700 Integradora de Servicios Petroleros Oro Negro 2,515 Neptune Orient Lines Group 29,676 PSA International Group 9, SembCorp Marine Group 1,060 3,664 Singapore Airlines Group 5,763 SATS Group 4,000 Singapore Power Group 1,377 Singapore Technologies Engineering Group 1, Singapore Telecommunications Group 3,290 Temasek Holdings Group 1,191 Transaction for the Purchase of Goods and Services Certis CISCO Security Pte Ltd Gas Supply Pte Ltd 90, ,000 Mapletree Investments Group PSA International Group Sembcorp Marine Group Singapore Power Group 240 ST Engineering Group 105 Total Interested Person Transactions 116, ,240 BY ORDER OF THE BOARD CAROLINE CHANG/KENNY LEE Company Secretaries 18 July 2013 Keppel Corporation Limited, Page 26 of 27

31