FY 2007 Financial Results 22 February 2008

Robust & Sustainable 45 Years & Beyond …..

Scope

Introduction

Financial & Business Review

Positioning for Robust & Sustainable Growth

Market Outlook

Summary

1 Updates on Unauthorised Foreign Exchange Transactions Net position from Unauthorised Transactions reduced from US$303 million to US$258.7 million Banks US$ Million SocieteGeneral 198.9 BNP Paribas 50.7 Others (including commercial settlements with 9 banks) 9.1 Total Amount 258.7

In compliance with Singapore Financial Reporting Standards, US$208.0 million to expense in Group’s 4Q 2007 Profit & Loss Statement & US$50.7 million to be disclosed as a contingent liability

Going Forward ………..

Amount from Unauthorised Transactions a “one-off” charge The Group has taken steps to ensure that this will not recur Due to on-going court proceedings, cannot reveal details of steps taken Meanwhile our focus on our business * its business as usual and * to grow our businesses

2 FY 2007 Performance Highlights

2007 : An Outstanding Year with Continuous Growth & Margin Expansion

Revenue : 27% to $4.513 billion Gross Profit : 40% to $411.5 million Operating Profit : 53% to $349.0 million PBT : 17% to $364.7 million PBT, excl Unauthorised Transactions : 116% to $673.0 million PATMI, excl Unauthorised Transactions : 130% to $549.2 million PATMI, excl NoI : 66% to $362.3 million

PATMI, incl Unauthorised Transactions : 1% to $241.0 million

Financial Highlights

2007: An Outstanding Year with Solid Growth excluding Unauthorised Transactions

Year FY FY % 4Q 4Q % Description (S$m) 2007 2006 Change 2007 2006 Change Revenue 4,513.1 3,545.0 27 1,336.7 1,331.5 -

EBITDA 413.1 273.8 51 145.1 101.3 43

Operating Profit 349.0 228.2 53 126.8 88.2 44 Pre-tax Profit, exclude FX 673.0 310.9 116 385.2 128.6 200 PATMI, exclude FX 549.2 238.4 130 309.0 95.3 224 PATMI, exclude NoI 362.3 217.8 66 120.4 75.7 59 EPS, basic (cents), excl FX 26.72 *11.71 128 14.93 *4.66 22 EPS, basic (cents) excl NoI 17.62 *10.70 65 5.82 *3.70 57 NAV (cents) 81.1 *65.3 24 - - -

* Adjusted for 2 for 5 Bonus Issue FX : Unauthorised Transactions and related expenses NoI : Non Operating Items

3 Financial Highlights

Excluding effects of Unauthorised Transactions, Continuous Growth & Margin Expansion

Year FY FY % 4Q 4Q % Description (S$m) 2007 2006 Change 2007 2006 Change Revenue 4,513.1 3,545.0 27 1,336.7 1,331.5 - EBITDA 413.1 273.8 51 145.1 101.3 43 Operating Profit 349.0 228.2 53 126.8 88.2 44

Effects of Unauthorised Transactions

Pre-tax Profit 364.7 310.9 17 77.0 128.6 (40) PATMI 241.0 238.4 1 0.8 95.3 (99) EPS, basic (cents) 11.72 11.71* - 0.04 4.66* (99) NAV (cents) 81.1 65.3* 24 - - -

* Adjusted for 2 for 5 Bonus Issue

Quarterly Revenue (2003 to 2007)

27% Growth in Revenue as compared with FY 2006 S$m

5,000 FY 2007 27% 4,513 4,500 1Q 2Q 3Q 4Q

4,000 FY 2006 3,545 1,337 3,500 0.4 %

3,000 1,331 2,500 1,170 2,119 74% 2,000 674 750 1,500 1,363 1,052 1% 1,068 397 451 1,041 1,000 239 390 339 470 91% 500 954 290 331 448 499 245 0 196 2003 2004 2005 2006 2007

4 Quarterly PATMI (2003 to 2007)

• 130% Growth in PATMI for FY 2007 at $549 million compared with $238 million in 2006 • Record 4 th Quarter Profit, exclude NoI FY 2007 S$m 130% 549 550

500 4Q 2007 189 450 1Q 2Q 3Q 4Q NoI 309 400 225% 350 120 300 FY 2006 250 238 59% 4Q 2006 200 75 81 95 82% 150 121 95 45 85 100 30 48% 79 25 19 33 57 22 19 81% 50 34 74 24 27 41 0 19 24 24 2003 2004 2005 2006 2007

Quarterly PATMI (2003 to 2007)

1% Growth in PATMI for FY 2007 at $241 million despite $308.2 million charged to profit and loss S$m account arising from Unauthorised Transactions and related expenses in 4Q 2007

550 500 1Q 2Q 3Q 4Q 4Q 2007 450 309 – 308.2* = 0.8 400 309 350 FY2007 1% 300 FY2006 241 250 238 4Q 2006 200 81 95 95 82% 150 121 95 45 48% 85 100 30 79 25 19 33 57 22 19 81% 50 34 74 24 19 27 24 41 0 19 21 2003 2004 2005 2006 2007

5 Margin & Profit Expansion

• Quarterly margin improvement in 4Q 2007 $’000 Percentage 159 14 160 13 Operating Margin Gross Profit Margin 12 Operating Profit Gross Profit 12 140 12 127 117 10 10 10 120 10 9 9 9 8 96 8 100 8 8 8 8 8 88 8 7 7 8 7 7 80 7 7 7 6 80 6 80 66 6 6 6 74 74 74 5 62 5 60 5 4 51 50 46 4 39 42 50 51 40 30 31 27 24 40 35 33 2 31 33 25 20 24 18 18 0 0 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07

Margin & Profit Expansion

• Further Operating Margin expansion for FY 2007 • FY 2008 expected to be better Percentage $’000 14 450 411 12.6 Operating Margin Gross Profit Margin 400 12 Operating Profit Gross Profit 349 350

10 9.5 295 9.1 8.9 8.8 300 8.3 8.0 7.7 8 250 7.0 6.8 6.4 228 200 6 5.9 170 150 128 120 4 102 125 90 100 93 2 74 50

0 0 2002 2003 2004 2005 2006 2007

6 Performance of Associates (Profit before Tax)

Increasing contributions from Associated Companies

Year ($’m) FY FY % 4Q 4Q % Description 2007 2006 ∆ 2007 2006 ∆

Cosco Shipyard Group 76.9 39.1 97 21.2 10.0 112 Màua Jurong/J S Inc (3.2) 0.5 n.m. 0.2 4.0 (95) Pacific Workboats 8.1 3.4 138 3.5 1.3 169 Others - 1.4 n.m. - 0.2 n.m.

Share of Asso Co & JV Results 81.8 44.4 84 24.9 15.5 61

Strong Positive Cashflow

Net Cash from operations improved 46% to $412 million

Year % Description FY2007 FY2006 change Cashflow from operation before 411.6 281.3 46 reinvestment in working capital Net cash provided by/(used in) 472.3 (100.5) n.m. operating activities Net cash provided by/(used in) 182.2 (65.9) n.m. investing activities Net cash (used in)/provided by (146.5) 128.1 n.m. financing activities Cash & cash equivalent 740.5 493.1 50 Net Cash (net of borrowings) 298.8 112.5 166

7 Capital, Gearing and ROE

Increased Net Cash Balances and *ROE (excl AFS Reserves) improved to 31%

Year % Description ($’m) FY 2007 FY 2006 change Shareholders’ Funds 1,680.1 1,338.3 26 Capital Employed 1,705.7 1,370.2 24 Net Cash 298.8 112.5 166 *ROE (%) 24.0 18.1 33 *ROE – excl. AFS Reserves (%) 30.9 20.2 53 Net Asset Value (cents) 81.1 65.3 24 *RoTA (%) 9.2 7.6 21

* Exclude Non Operating Items

Capital, Gearing and ROE

Increased Net Cash Balances and ROE (excl AFS Reserves) 20.6%

Year % Description ($’m) FY 2007 FY 2006 change Shareholders’ Funds 1,680.1 1,338.3 26 Capital Employed 1,705.7 1,370.2 24 Net Cash 298.8 112.5 166 ROE (%) 16.0 19.8 (19) ROE – excl. AFS Reserves (%) 20.6 22.1 ( 7) Net Asset Value (cents) 81.1 65.3 24 RoTA (%) 6.1 8.3 (26)

8 Capex

Capex for FY 2007 lower due to completion of major acquisitions in FY 2006

Year ($’m) 2007 2006 Description Actual Actual

Kristiansand Rig - 35.2 Buildings 12.1 24.5 Plants, Machinery & Cranes 78.1 60.7 Office & Workshop Equipment 16.6 5.9 106.8 126.3 Other investment Cosco Shipyard Group (China) - 27.6 Cosco Corporation (Singapore) - 120.5 SMOE & SemBeth* - 67.1 Others 49.0 1.6 49.0 216.8 Total 155.8 343.1

* In addition to a loan amount of $116.9 million, assumed by a subsidiary company

Shareholder Value

• One-tier Interim Dividend of 3.57 cents per share (adjustment for 2 to 5 bonus share • Final Dividend at 5.16 cents per share • Total FY 2007 dividend at 8.73 cents per share with dividend payout ratio at 75% Cents 12

Interim Dividend FY Dividend Final Dividend 10 77% 75% 8.73 8

6 5.16 91%

91% 8.9 4 84% 86% 78% 79% 72% 72% 5.4 4.30 2 3.60 3.60 57% 3.20 3.50 3.57 2.80 2.80

1.30 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

9 Strong, Resilient Core Businesses : Operationally Strong & Mark et Robust

250 211 200 189

150

104 107 100 89 81 82

800 50 731 700 0 612 2,499 600 2001 2002 2003 2004 2005 2006 2007 2500 531 486 500 456 423 2000 400 346 1,729 300 1500 200 100 1000 0 200 1 20 02 200 3 20 04 20 05 20 06 20 07 500 381 95 135 118 0 2001 2002 2003 2004 2005 2006 2007

1200 1,131

1000 886 913 800 615 600 391 400 332 204 200

0 2001 2002 2003 2004 2005 2006 2007

Strong, Resilient Core Businesses

Rig Building registered record growth 2% 2% contributing 55% to total revenue for FY 2007 Shipbuilding Others 2% 16% 6% Others 17% 82 25% Shipbuilding Ship Repair 71 731 Ship Repair 211 80 Ship Conversion 612 & Offshore 1,131

26% 913 FY 2007 Ship Conversion FY 2006 $4.5 b & Offshore $3.5 b

55% 1,729 2,499 Rig Building 49% Rig Building

Turnover (S$’m) FY FY % 4Q 4Q % 2007 2006 Change 2007 2006 Change Ship repair 731.1 612.1 19.4 195.7 194.9 0.4 Rig building 2,498.9 1,728.9 44.5 736.2 707.0 4.1 Ship Conversion/offshore 1,130.5 913.4 23.8 364.0 371.6 (2.0) Shipbuilding 81.6 210.6 (61.3) 10.9 50.4 (78.4) Others 71.0 80.0 (11.2) 29.9 7.6 293.4 TOTAL 4,513.1 3,545.0 27.3 1,336.7 1,331.5 -

10 Strong, Resilient Core Businesses : Ship Repair

Average value per vessel increased by 47% from $1.95 million to $2.86 million

S$’000

800 731 Year 2007 2006 % change 700 612 No of vessels repaired 256 314 (18) 600 531 486 456 500 423 Average value per vessel ($’m) 2.86 1.95 47 346 400 Revenue contributions ($’m) 731.1 612.1 19 300 200 Offshore 100 Upgrading Others 0 6% Tanke r 2001 2002 2003 2004 2005 2006 2007 16% Passenger 37% FY 2007 Offshore 3% FPSO Upgrading Upgrading 6% 5% Tanke r Others 16% 39% FY 2006 15% LNG/LPG 11% 10% Container 15% Bulk Carrier LNG/LPG 11% 10% Bulk Carrier Container

Strong, Resilient Core Businesses : Ship Building

S$’000 250 211 189 200 Shipbuilding activities will scale down with resources channeled to growing rig building and offshore 150 production sectors 104 107 89 82 100 81

50

0 2001 2002 2003 2004 2005 2006 2007

No. completed FY 2007 4 * 5 th unit 2,600 TEU vessel for Wan Hai Lines * Fabrication of 15 units of Floating Pontoons * 2 units 4,950 dwt tankers for Kuwait Oil Tanker No. in projects in Work- 2 * 6 th unit 2,600 TEU vessel for Wan Hai Lines In-progress stages * 2 nd unit 2,600 TEU vessel for Reederei F Laeisz

11 Strong, Resilient Core Businesses : Ship Conversion & Offshore S$’000

Ship Conversion & Offshore activities expected to be strong for FY 2007

No. completed in FY 2007 4 * PRA-1 FPSO * BW Enterprise FPSO conversion * RJS FSO conversion S$’000 * P-54 Integration & Commissioning 1,131 1200 No. in WIP stages 11 * Heavy Lift Derrick PipeLay vessel for SapuraCrest 1000 886 913 * ConocoPhillips Topsides Installation & Commissioning 800 * Raroa FPSO conversion 615 * Aoka Mizu FPSO conversion 600 * Joides Resolution (Drillship) 391 332 * Aker Smart I FPSO conversion 400 * Montara Venture FPSO conversion 204 * Noble Danny Adkins 200 * CPOC offshore platform integrated deck * Offshore platforms for Tuna Field 0 2001 2002 2003 2004 2005 2006 2007 * Conversion to DP2 Accommodation vessels (1 + 5) In planning & engineering stage 2 * Noble Jim Day * Heavy Lift crane

Strong, Resilient Core Businesses : Rig Building

Jack-ups S$’000 • 2 units jack-up achieved initial 20% No. completed in FY 2007 4 * 3 rd unit Jack-up for Apexindo recognition in 4Q 2007 as compared * 4 th unit Jack-up for Maersk * 5 th unit Jack-up for Deep Drilling Invest with nil in 3Q 2007 * 6 th unit Jack-up for WilSuperior • No major revenue recognition for No. of projects in WIP stages 12 * 7 th unit Jack-up for SeaDrill * 8 th unit Jack-up for PetroJack II semi-submersible in 4Q 2007 as * 9 th unit Jack-up for Japan Drilling compared with 1 unit that achieved * 10 th unit Jack-up for PetroJack III * 11 th unit Jack-up for Awilco initial 20% recognition in 3Q 2007 * 12 th unit Jack-up for Aban Lloyd * 13 th unit Jack-up for Sinvest th S$’000 2,499 * 14 unit Jack-up for JackInvest 1 * 15 th unit Jack-up for Awilco 2500 * 16 th unit Jack-up for Vantage Energy * 17 th unit Jack-up barge for Aramco * 18 th unit Jack-up for Awilco 2000 1,729 1,114 Semi-submersible In planning & engineering stage 5 * 19 th unit Jack-up for Vantage Energy Jack-up * 20 th unit Jack-up for PetroProd * 21 st unit Jack-up for Vantage Energy 1500 521 * 22 nd unit Jack Up for Vantage Energy * 23 rd unit Jack-up for EDC 1000 No. completed in FY 2007 nil 381 No. in WIP stages 4 * 1 st unit semi-submersible for SeaDrill * 2 nd unit semi-submersible for SeaDrill 500 1,385 * 3 rd unit semi-submersible for PetroMena 77 1,208 * 4 th unit semi-submersible for PetroMena 95 131 118 304 In planning & engineering stage 3 * 5 th unit semi-submersible for PetroMena 0 4 2001 2002 2003 2004 2005 2006 2007 * 6 th unit semi-submersible for SeaDrill * 7 th unit semi -submersible for Atwood

12 Contracts Secured to -date (exclude ship repair)

• Record contacts secured in FY 2007 stood at S$5.4 billion • 76% more than FY 2006 & exceeding FY2005’s record high of S$4.2 billion by 29% S$’000 * Contract secured as at 2008 to-date stands at $401 million. We expect to secure more 5,429 5,500 581 5,000 (11%)

4,500 4,197 4,000 Offshore Platf orm Ship Building 1,697 2,085 (40%) 3,500 Rig Building: jack-up (38%) Rig Building: semi-submersible 3,088 3,000 Conversion/of fshore

2,500 2,055 1,534 (49%) 1,616 2,000 335 (30%) (16%) 2,089 (50%) 1,500 601 (30%) 1,000 1,009 (33%) 700 657 757 (35%) 1,147 (21%) 500 (43%) (16%) (65%) 1,119 401 (54%) 545 244 (84%) 411 (50%) (57%) (18%) 0 (50%) (10%) 2000 2001 2002 2003 2004 2005 2006 2007 22-Feb-08 Contracts Secured

Net Order Book

• Strong Net order book at S$7.4 billion S$’000 • Net Order Book expected to grow 8,000 7,361 6,960 7,000 Semi-submersible Jack Up 6,000 Ship Conversion & Offshore 3,093 (42%) 5,472 (39%) Ship Building 5,341 2,692 5,000

2,033 (38%) 2,198 (40%) 4,000

2,726 (39%) 3,000 2,726 (37%) 2,288 2,018 (38%) 2,240 (41%) 2,000 589 (26%) 1,081 77 (7%) 1,212 (53%) 1,000 192 (18%) 992 (18%) 1,536 (22%) 1,536 (21%) 948 (17%) 584 (54%) 487 (21%) 228 298 (6%) (2%) 0 (21%) 86 6 6 2003 2004 2005 2006 2007 22-Feb-08

13 Schedule of Delivery & Completion (exclude ship repair)

• Shipbuilding activities will scale down with resources channeled to growing rig building and offshore production sectors • Will deliver 1 to 2 units per year from 2008 onwards

Year Projects 2005 2006 2007 2008 2009 2010

Shipbuilding 1st unit 2,600 TEU container (Wan Hai Lines) Delivered nd 2 unit 2,600 TEU container (Wan Hai Lines) Delivered 3rd unit 2,600 TEU container (Wan Hai Lines) Delivered Delivered 4th unit 2,600 TEU container (Wan Hai Lines) th 5 unit 2,646 TEU container (Wan Hai Lines) Delivered 6th unit 2,646 TEU container (Wan Hai Lines) st 1 unit 2,600 TEU container (R F Laeisz) Delivered 2nd unit 2,600 TEU container (R F Laeisz) st 1 unit 4,950 dwt tanker (Kuwait Tanker) Delivered 2nd unit 4,950 dwt tanker (Kuwait Tanker) Delivered Fabrication of 15 units floating pontoons Delivered *

Completion 1 5 3 2

Schedule of Delivery & Completion (exclude ship repair) • Ship conversion & offshore sector expected to be strong for FY 2007

Year Projects 2005 2006 2007 2008 2009 2010 Ship Conversion & Offshore P-50 integration & commissioning Completed P-54 marine conversion Completed

P-54 Topside Fabrication Completed P-54 Compressor Modules Completed BW Enterprise FPSO conversion Completed PRA-1 FPSO conversion Completed RJS FSO conversion Completed Completed P-54 Integration & Commissioning ConocoPhillips Topsides Heavy Lift Derrick Pipelay Vessel Completed FPSO conversion: Raroa Completed Joides Resolution Drillship Aoka Mizu FPSO conversion FPSO Aker Smart I FPSO conversion Montara Venture Semi-submersible conversion (Noble Danny Adkins) Semi-submersible conversion (Noble Jim Day) Heavy Lift Crane vessel CPOC Offshore Platform Integrated Deck Offshore Platforms for Tunu Field Conversion to DP2 Accommodation & repair vessels (1+5)

Complet tion 6 6 5 6 3

14 Schedule of Delivery & Completion (exclude ship repair)

Projects Year 2005 2006 2007 2008 2009 2010 Jack-up st 1 Jack-up (Deep Driller I)* Hardy Delivered * ( ) denotes with contract * 6 units delivered (2 units in 3Q2007) nd 2 Jack-up (Wilpower) Aramco Delivered * 3rd Jack-up (Soehanah) Total Delivered * Delivered * 4th Jack-up (Petrojack I) (Maersk) Total 5th Jack-up (Deep Driller 4) Reliance Delivered * 6th Jack-up (WilSuperior) Thang Long Delivered * Delivered * 7th Jack-up (West Triton), Apache Corp, Australia 8th Jack-up (Petrojack II) International Drilling contractor 9th Jack-up (Hakuryu X) 10 th Jack-up (Petrojack III) * Maersk 11 th Jack-up (WilForce) 12 th Jack-up (Aban) 13 th Jack-up (Deep Driller 7) 14 th Jack-up (JackInvest 1) 15 th Jack-Up (WilSeeker) 16 th Jack-Up (Offshore Grp – Vantage Energy Grp) 17 th Jack-Up Barge (Aramco) 18 th Jack-Up (Offshore Grp – Vantage Energy Grp) 19 th Jack-Up (WilConfidence) 20 th Jack-Up (Petroprod) 21 st Jack-Up (Offshore Grp – Vantage Energy Grp) 22 nd Jack-Up (Offshore Grp – Vantage Energy Grp) 23 rd Jack-up (EDC)

Completion (23 units on order) (0) (2) (5) (9) (5) (2) 7 units delivered (16 units under construction)

Schedule of Delivery & Completion (exclude ship repair)

Year Projects 2005 2006 2007 2008 2009 2010 2011 Semi-submersible Rigs

Lower semi-submersible hull (Atlantia) Delivered 1st Semi-submersible (West Sirius 1)* () 2nd Semi-submersible (West Taurus) 3rd Semi-submersible (PetroRig I)* 4th Semi-submersible (PetroRig 2) Petrobras 5th Semi-submersible (PetroRig 3) Pemex 6th Semi-submersible (Seadrill) 7th Semi-submersible (Atwood) Chevron New

Completion (7 units on order) (0) ( 1)* (0) (2) (2) (2) (1)

( ) denotes with contract

Projects Year 2005 2006 2007 2008 2009 2010 Offshore Platform

CPOC : Offshore Platform Integrated Deck New Offshore Platforms for Tunu Field New Completion (2) * Delivered ( ) denotes with contract ( ) denotes with contract

15 Positioning for Robust & Sustainable Growth : Consolidation & Expansion Multi-prong approach: Leveraging on complementary facilities - Singapore and Brazil - Singapore and China - Singapore and Indonesia

Increasing shipyard production capacity - Maximising Singapore-based shipyard capacity - Innovative methodology in rig construction - Change in work flow and processes - SemBeth Land Expansion & consolidation - Expansion & growth in offshore platform - R & D - Footprint in India - Investment in Saudi Arabia - Streamline operations in Sabine Industries, USA

Leveraging between Singapore and Brazil

• To deepen our commitment & investment in Brazil • To further grow offshore business

We have to-date undertaken most number of offshore conversions for Petrobras Delivered 6 FPSO units, 1 FPU & 2 FSO units (latest P-54 FPSO) Contributions 1,003,000 barrels of oil per day, translating into some 56% of Brazil’s oil production

16 Leveraging between Singapore and China

• 30% equity stake in Cosco Shipyard Group • Strategic Partnership & Investment • A “win-win” situation for all parties • Ship repair • Enhance & increase capacity to take on more offshore projects • Leveraging on facilities & strengths of partners • A “win-win” situation for all parties • Examples of projects undertaken Lower pontoons of semi-submersibles - Lower pontoons of semi-submersibles towed to Singapore on completion of - Accommodation portion of jack-up rig construction in Cosco Dalian, China

Leveraging between Singapore and Indonesia (Batam)

• Positioning for Indonesian oil & gas • Batam Fabrication Facilities : 30 hectares • Currently developing another 30 hectares of land

• Offshore Platforms • Supporting Singapore shipyards • Position to undertake fabrication of topside modules for FPSO conversions (different cost structures)

17 Increasing Shipyard Capacity : Singapore Yards Total Land Area: Singapore :189 hectares Others : 75 hectares New SSPL

• Integration

• Maximisation & sharingJSPL, SML, of resources Atlantis • Change in workflow & processes • Innovative construction methodology

New

Karimun Batam

Proven Track Record : On track deliveries in 2007

Soehanan PT Apexindo Pratama Duta Tbk West Triton April 2007 Apache Corporation Total E & P Indonesia December 2007 Gippsland basin Permit VIC/P42 Offshore Victoria, Australia

Maersk Completor Maersk Contractors May 2007 Total E & P

WilSuperior Awilco Offshore ASA Deep Driller 4 August 2007 Deep Driller Invest Pte Ltd Thang Long, Vietnam August 2007 Reliance, India

18 Proven Track Record : Fast track delivery

West Sirius : anchorage Installation of thrusters, etc Feb 2008

West Sirius 1st unit Delivery: 1Q2008 • Fast-tracks delivery of West Sirius using West Taurus award-winning proprietary rig-building techniques 2nd unit - Load-out & Mating-in-Dock technique Delivery: 4Q2008 - Transverse Skidding technique • Shipyard’s 1 st turnkey rig-building project which encompasses engineering, procurement, construction, integration and commissioning (EPIC) elements • Delivery 1Q 2008 : West Sirius - West Sirius US$390m in June 2005 - West Taurus US$404m in August 2005

As at Dec 2007 - 3rd unit at US$535m in May 2007

Sembawang Shipyard : Consolidation & expansion through acquisition of land

Total Land Area : 86 hectares (Acquired in August 2006) Aban rig under Purchase price : S$128.7 million construction in SSPL SMOE : S$ 55 million Ex-SemBeth

Progress of Aban rig under construction in SSPL as at July 2007

Jacking trial of Aban rig in SSPL As at 11 Feb, 2008

• SSPL : 40 hectares • SMOE : 25 hectares Launching of Aban rig in SSPL • Others : 21 hectares on 12 October, 2007

19 Acquisition of SMOE : Positioning for Expansion & Growth in offshore platform

• Growth market : Production Platforms & Facilities Malampaya Gas to Power Project for Kellogg Brown & Root / • Acquisition of CPEC (Chiwan Offshore Shell Philippines Exploration B.V. Equipment Repair & Manufacture Co)

Offshore Platform Integrated Deck

FPSOs • US$300 m from Carigali-PTTEPI •Topside modules • Modularization Operating Company (CPOC) • 18,000 ton deck •Fabrication,Integration Onshore Commissioning and Loadout of 13,000mt Topside. Topside was jacked up to a height •ofTurrets 16 metres to accommodate the 1,500mt loadout truss. Total load-out weight – 13,000mt Year of completion : 2001

Progress of CPOC project in SMOE

Acquisition of SMOE : Positioning for Newbuild Mega FPSO Solutions

 Strong demand for Mega-FPSOs (e.g. Erha & Bohai FPSO type of topsides @ 25,000 tons to 35,000 tons etc) forecast from 2007-2010

FPSO Northern Endeavour for Woodside Petroleum, Australia, Fabrication, modularization and Laminaria and Corallina fields in Timor Sea integration of ERHA FPSO topsides Year of completion : 1999 for ExxonMobil, Erha Field, Nigeria Year of completion : 2005

Fabrication, modularization and Integration of Bohai FPSO topsides for FPSO Sea Eagle for Shell Petroleum Development Company ConocoPhillips China Inc. of Nigeria, West Africa, Nigeria Contract Value : US$200 m Year of completion : 2002 Year of completion : 2008

20 Strategic Investment & Partnership : Footprint in India

• To establish other business ventures in close collaboration with our Indian partners • To further grow our marine & offshore business in India

• Investment partnership with Pipavav Shipyard and SKIL Infrastructure for a 3.31% placement share. Other partner Punj Lloyd • Initial role : advising on design of shipyard, its layout and infrastructure, setting up of management and technical systems and training to PSL • Location of Pipavav Shipyard: - within vicinity of Pipavav Port, Gujarat in India - strategically located on west coast along the Middle East – Singapore sea route - 85 hectares, shipyard infrastructure under development & construction & scheduled for completion in September 2008

Strategic Investment & Partnership : Footprint in Saudi Arabia

• To establish other business ventures in close collaboration with our Saudi partners • Opportunities to grow our marine, oil and gas business in the Middle East

• Investment partnership with Al-Mukairish : JV to form SembMarine (Middle East) Pte Ltd (SMME)

• SMME will be a Founding Shareholder in Saudi Arabia joint stock company named Floating Dock for Shipbuilding and Ship Repair Company (FDSCO) which will build, own and operate FDSCO Yard during 30 year term

• Located on Al Jazeera Island, part of the Yanbu Commercial Port, facing the Red Sea - 21 hectares land area - fully operational by 2009, the FDSCO Yard will have a shiplift system for new building and repair of vessels up to Handymax size & floating dock for repair of vessels up to Suezmax size

• Strategically located, suitable for repair especially ships plying Red Sea-Mediterranean Sea via Suez Canal

21 Streamline of Operations : GOM

• To be planned & outfitted as part of SembCorp Marine’s overall strategy • To facilitate & serve US customers in offshore rig repairs, refurbishment and rig building in region

• Location of Sabine Industries - located in Sabine Pass, Texas, USA - approximately one mile from the Gulf of Mexico, on the Texas-Louisiana border and 1½ hours from Houston and minutes from Beaumont, Port Arthur and Orange, Texas - Land area 223 acres

Atwood Oceanics Newbuild Semi-submersible contract • US-based International Drilling Contractor • US$280.5m excluding owner furnished equipment, other related costs • Total cost of rig at US$570m to US$590m • 1 unit plus option for 2 nd unit to be exercised within 6 months • Charter contract to Chevron Australia 3 years with option to extend to 6 years. Operating dayrate at US$470,000 (3 years) & US$450,000 (6 years) • Friede & Goldman Ex-D Millennium design – conventionally moor up to 6,000 ft of water

R & D : Product Development

Baker Design Jack-up New Semi-submersibles Ship Design & FPSOs Enhancement Design Design

• Drag coefficient study • Collaborate with external • Eco-Friendly ships • Interaction between structures designer • Harsh Environment Drillships • Rack phase difference analysis • Develop internally • FPSO sub system e.g. turret, riser, single mooring system ship • New Storm Holding system • Floating production vessels • Next Generation Rigs

22 Market Outlook : Ship Repair Ship Repair demand remains very strong - shortage of dock capacity - specialised niche market : LNG gas tankers, containerships, rig repairs, FPSO upgrades - ability to deliver on schedule important - high HSSE standards

Singapore’s strategic location

Crude oil seaborne trade: Singapore is strategically located, as such shiprepair/conversion services will always be in demand

45 Western Europe 406 Black Sea North America 8 50 China 428 16 9 Japan Near East 227 20 247 83 93 106 33 182 North Africa Middle East 7 188 40 783 Caribbean 229 West Africa 106 18 7 62 19 68 13 South America

67 16 Singapore 9

Main inter-area movements in metric tonnes. Only main routes are shown. Area figures are total including smaller routes not shown separately. Total trade @ 1534 million tonnes Source :Fearnleys

Market Outlook : offshore value chain Drilling Units Offshore Platforms & Floating Production Units

Jack-up rig 5th Generation 6th Generation Newbuild FPSO Fixed Platform Semi-sub Semi-sub FPSO conversion

Production Semi-submersible

Field Field Subsea Seismic Exploration Production Storage Transportation survey development construction

23 Jack -up : Fundamentals remain strong

No. of units • Aging rig fleet worldwide • World oil supply remains tight & demand for oil is increasing 100 • Supply of rigs well regulated due to certain constraints

90 87

80

70 64 More than 300 were ordered 60 & delivered from late seventies to mid-eighties 50 So far 96 jack-up rigs ordered with deliveries till 2011 40 34 31 30 27

21 20 19 22 20 18 14 13 11 10 10 9 9 9 6 5 4 4 5 4 4 4 2 2 2 2 3 4 3 3 2 1 1 1 1 1 0 9 71 79 89 9 07 1970 19 1973 1975 1977 19 1981 1983 1985 1987 19 1991 1993 1995 1997 19 2001 2003 2005 20 2009 2011 2013 Source :< ODS – Petrodata/company As at 5 January 2008

Semi -submersibles : Fundamentals remain strong with demand trending towards deepwater exploration

No. of units More than 140 units were ordered 25 & delivered from mid seventies to mid-eighties

So far 43 units 20 20 ordered with deliveries till 2011 17 16

15 14 13 13 11 12 11 Semi market is expected 9 10 to be strong & ordering 10 momentum to continue

6 5 5 5 5 4 4 4 4 3 3 2 2 2 2 1 1 1 1 1 1 1 0

0 4 0 4 8 8 0 2 4 6 8 0 2 7 72 7 76 78 8 81 8 86 8 90 92 94 96 9

Source : ODS - Petrodata

24 Offshore Rig Sector : Fundamentals remain strong

No. of units • 82 yards worldwide building rigs (5 in Singapore) • Jack-ups : more than 300 jack-ups built & delivered 110 • Semi-submersibles : more than 140 units ordered & delivered 3

100 • Jack-up : only 17 yards worldwide building rigs (Singapore 68% world market share in jack-ups) 17 Drillship • Demand driven by new requirements & partial replacement 90 Semi-submersible • Jack-ups : so far 96 jack-ups ordered Jack-up • Semi-submersibles : 43 units ordered (14 shipyards) • Constraint by drilling package 80 • Jack-up : Singapore yards 70% market share • Semi-submersible : Korean (18%), Singapore (38%), China (22%) etc 70 2 • Drillships : 22 units ordered so far. Korea (94% market share) 4 & Spain 6% 60

50 1 3 87 8 40 0 20 13 2 3 3 64 30 16 13 14 0 8 3 1 0 3 20 1 1 11 1 34 11 10 4 31 12 2 20 27 1 5 1 6 0 22 10 18 20 0 1 19 0 9 6 7 0 0 14 13 5 3 4 1 0 1 10 11 0 0 2 0 0 3 6 9 4 0 1 2 1 5 1 2 9 9 2 1 5 4 4 5 0 3 1 0 0 0 0 3 4 4 4 3 3 4 1 0 1 2 1 1 1 2 2 2 0 1 01 1 2 <1970 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Source : ODS – Petrodata/company

Offshore Rig Sector : Rig Utilisation remains high averaging over 90%

World Activity Summary North Atlantic Rig Activity Norwegian Rig Activity

South American Rig Activity US Gulf Rig Activity West & South Africa Rig Activity

25 Offshore Rig Sector : Charter rates remains high

Source : Platou Offshore

“The Oil Squeeze ” : Oil Prices hit US$100 …

• Demand for oil is increasing • Excess oil production capacity is decreasing • Capacity to meet future oil demand is a major concern • Need to replenish depletion of reserves • High oil prices will continue to support offshore fleet construction

Source: ExonMobil

26 Deepwater Areas/Basins of the World : Frontier/ Future Deepwater Areas or Basins

“Besides the need to appraise and develop discoveries, unexplored areas will provide added demand growth as operators look more and more to deepwater to offset production declines and replace producing reserves” : 20 Feb 2008 results

Offshore Production Market : Floaters

12 11 119 Projects involving Floating Production or Storage Systems 10 12 9 39 of the119 planned projects are 8 Are Planned or Under Study as of November 2007 7 In the bidding or final design stage 6 8 7 with project start likely in next * Floating Production Sector extremely Strong 5 4 12 to 18 months 3 80 Floater Projects are in the Planning or Study Stage 2 3 2 2 1 2 1 1 0 1 18 17 l n Z A /N E OM a S G . Africa Brazi ranea China rribean 16 W N. Europe Ca Australi SWA/Meast Miditer 26 25 14 12 24 12 <1000m water depth 10 6 22 Deepwater 1000 - 1500m 10 22 Ultra-Deepwater >1500m 8 15 20 19 6 12

18 2 4 3 17 6

No. units of 2 16 3 4 1 1 9 0 14 A M st e n a a E rica e an O /NZ a o p d 13 S n G e r a . Af Br az il a lia M Chi an 19 a . Eu C 9 W N i dite rr Au str SWA/ 12 M 10 8 8 12 13 6 6 10 5 4 8 8 6 1 5 2 2 1 2 1 2 1 1 1 1 0 il st an r a /NZ a e e d a rope th SEA raz li u an Mexico B O ana China f tra .E rr C o W. Africa N f us dite Source : International Maritime Associates, Inc ul A SWA/Me G Me

27 Offshore Production Market : Fixed Platform

Fixed Platform Capex By Region 2007-2011 Fixed Platform Capex By Region 2002-2006 US$M 14,000 12,292 12,000 20,000 18,937 10,000

7,982 18,000 8,000 7,086 5,590 6,000 5,089 Indonesia 16,000 3,859 Thailand 4,000

Malaysia 2,000 766 14,000 China 0 Vietnam Africa Asia Australasia Europe Latin Middel East North 12,000 America & Caspian Am erica 9,626 10,000 8,518 US$ million US$ 7,935 8,000 6,452 Mexico 6,000 Nigeria Venezuela Iran Angola 4,055 Saudi Arabia 4,000 2,729 2,000

0 Africa Asia Australasia Europe Latin Middel East North America & Caspian America

Source : Infield Fixed Platform Market Outlook Report for 2007 -2011

Summary Strong Orderbook with completion & deliveries till 2011 - Contracts secured in 2007 at S$5.4 billion - New contract secured in 2007 as at February 2008 : US$280.5m (S$401 million) - Net Order book to-date stands at S$7.4 billion

Ship Repair demand remains very strong - Dock space remains fully utilised - Dock space bookings continues to be strong

Rig Building fundamentals remain strong - Deepwater E&P activity continues to be very strong - Global oil demand in 2008 expected to grow 2.3% - Adequate oil supply remains a major concern - Sustained higher levels of E&P spending & high oil prices continue to support demand for offshore fleet construction

Production Floater Orders continue at a strong pace - FPSO & floating production systems

28 45 Years & Beyond ……

Robust & Sustainable

Thank You

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, exchange rate movement, cost of capital and capital availability, competition from other companies and venues for sale and distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes. The forward-looking statements reflect the current views of Management on future trends and developments.

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