1Q2011 RESULTS BRIEFING1Q2011 RESULTS BRIEFING

5 May 20115 May 2011

This presentation may contain forward-looking statements that involve risksand uncertainties. Actual future performance, outcomes and results maydiffer materially from those expressed in forward-looking statements as aresult of a number of risks, uncertainties and assumptions.

Representative examples of these factors include (without limitation)general industry and economic conditions, interest rate trends, cost ofcapital availability, competition from other companies and venues for thesale/distribution of goods and services, shifts in customer demands,

CAUTIONARY NOTE

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sale/distribution of goods and services, shifts in customer demands,customers and partners, changes in operating expenses, includingemployee wages, benefits and training, governmental and public policychanges and the continued availability of financing in the amounts and theterms necessary to support future business.

You are cautioned not to place undue reliance on these forward lookingstatements, which are based on current view of management on futureevents.

This presentation should be read in conjunction with Rotary Engineering Limited’s 1Q2011 Financial Results

ended 31 March 2011 statement lodged on SGXNET on 5 May 2011

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lodged on SGXNET on 5 May 2011

1. Financial Highlights

2. Project Summary

3. Summary

PRESENTATION OUTLINE

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4. Question-&-Answer Session

FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

S$’000 1Q2011 1Q2010 �

Revenue 130,468 179,741 27%

Gross Profit 23,069 32,108 27%

Gross Profit Margins (%) 18% 18% -

Other revenue 254 448 NM

Admin costs (12,002) (12,928) 7%

P&L SUMMARY

Other operating costs (3,372) (3,359) -

Finance costs (255) (7) NM

Share of associates results (110) (343) NM

Profit Before Tax (PBT) 7,584 15,919 52%

Profit After Tax (PAT) 7,828 12,402 37%

Non-controlling Interests (2,517) 1,401 NM

Profit attributable to parent (PATMI) 5,311 13,803 62%

EPS (Cents) 0.9 2.4 62%6

REVENUE BY GEOGRAPHICAL SEGMENTS

Saudi

Singapore24%

1Q2011: S$130.5m

Singapore38%

1Q2010: S$179.7m

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Saudi67%

ASEAN, UAE &

OTHERS9%

Saudi60%

ASEAN & OTHERS

2%

ORDER BOOK BY GEOGRAPHICAL SEGMENTS

ASEAN1%

Singapore10%

Saudi

@ 31 Mar 2011: S$823.9mSingapore

17%

ASEAN4%

@ 31 Mar 2010: S$1.1b

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UAE39%

Arabia50% Saudi

Arabia79%

4%

� Expect continued pressure on margin � Maintain GP guidance: 15% ~ 20% for FY2011

GROSS PROFIT MARGIN

S$’000 1Q2011 1Q2010 �

Gross Profit 23,069 32,108 27%

Gross Profit Margins (%) 18% 18% -

9

3 34

43

12%11%

13%

15

20

12%

15%Admin Costs Other Operating Costs Total Costs as % of revenue

ADMIN & OTHER OPERATING COSTS

S$’m

Stable & inline with revenue growth

10

13 14 14 13 12

3 439%

8%

0

5

10

15

1Q2010 2Q2010 3Q2010 4Q2010 1Q20110%

3%

6%

9%

� PMET strengthened in Singapore and Saudi Arabia

� Costs in line with business activities and performance

ADMINISTRATIVE COSTS

S$’000 1Q2011 1Q2010 �

Admin costs (12,002) (12,928) 7%

Forex loss (219) (356) NM

Admin costs (Less Forex) (11,784) (12,572) 6%

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� Costs in line with business activities and performance

� Maintenance

� IT support

� Business development and tender

OTHER OPERATING COSTS

S$’000 1Q2011 1Q2010 �

Other operating costs (3,372) (3,359) -

• (Allowance)/Write-back for doubtful debts

(93) 261 NM

• Impairment loss on advances to associates

- (603) NM

• Allowance for obsolete inventories (14) (8) NM

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• Other operating costs (excl allowances) ~ mainly depreciation in Singapore & Saudi Arabia

• Allowance for obsolete inventories (14) (8) NM

Other operating costs(excl allowances)

(3,265) (3,009) �9%

S$’000 31.03.2011 31.12.2010

Property, Plant & Equipment 76,412 77,066

Other Non Current Assets 24,582 24,036

Current Assets 643,199 638,427

TOTAL ASSETS 744,193 739,529

Current Liabilities (423,290) (427,812)

BALANCE SHEET SUMMARY

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Current Liabilities (423,290) (427,812)

NET CURRENT ASSETS 219,909 210,615

Non-Current Liabilities (14,460) (11,884)

NET ASSETS 306,443 299,833

Share Capital & Reserves 287,565 283,123

Net Asset Value (Per share) 50.6cts 49.9cts

� Property Plant & Equipment � Normal replacement of assets� Depreciation: S$3.1m

� Current Assets� WIP increase due to contract revenue not yet recognised

BALANCE SHEET ANALYSIS

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� WIP increase due to contract revenue not yet recognised� AR ~ Timing difference between revenue and invoicing

� Current Liabilities� AP decrease due to lower procurement activities in 1Q2011� WIP increase due to accrued project costs

� Non Current Liabilities� Further approved financing from SIDF

CASH FLOW SUMMARY

S$’000 1Q2011 1Q2010

Net cashflows (used in)/from Operations (29,469) 9,654

Net cashflows (used in) Investment (1,912) (3,671)

Net cashflows from/(used in) Financing 13,041 (5,458)

Net (decrease)/increase in cash and cash (18,340) 525Net (decrease)/increase in cash and cash equivalents

(18,340) 525

Cash & Cash Equivalents

Effect on exchange rate changes (598) 164

At beginning of period 134,538 132,225

At end of period 115,600 132,914

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� Net cash used in operations � Project claims per contract T&Cs� Invoicing procedures

� Net cash used in investment

CASH FLOW ANALYSIS

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� Net cash used in investment � Replacement of assets (PPE)

� Net cash from financing � Working capital in Saudi Arabia

133123

137

116

151

100

150

Cash & equivalent Project Working CapitalS$’m

STRONG CASH POSITION

17

414

2438

51

0

50

100

1Q2010 2Q2010 3Q2010 4Q2010 1Q2011

PROJECT SUMMARYPROJECT SUMMARY

Client/Project Location ContractValue

StartDate

ExpectedCompletion Date

Shell - Maintenance Various - 4Q2009 Ongoing

Hyundai - Jurong Rock Cavern (Engineering)

JurongIsland

S$2m 3Q2009 1H2011

Petrochemical process ASEAN S$130m 2H2009 3Q2011

PROJECT SUMMARY

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Petrochemical process plant

ASEAN S$130m 2H2009 3Q2011

Saudi Aramco Total Refining & Petrochemical Company (SATORP) refinery tank farm

Saudi Arabia-

Jubail City

US$745m 3Q2009 4Q2012

PTT Tank Terminal Co -ammonia storage tank

Thailand-Rayong

S$48m 3Q2009 2Q2011

Client/Project Location ContractValue

StartDate

ExpectedCompletion Date

Concord Energy-Fujairah Oil Terminal

UAE-Fujairah

US$250m 1Q2011 1H2013

Stepan Asia-Chemical plant

JurongIsland

S$15m 1Q2011 1Q2012

Lanxess – Butyl Rubber Jurong S$3m 1Q2011 3Q2011

PROJECT SUMMARY

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Lanxess – Butyl Rubber plant

JurongIsland

S$3m 1Q2011 3Q2011

SUMMARYSUMMARY

SUMMARY

� 1Q2011� Revenue: S$130m� PATMI S$5m � Cash: S$116m � Order book: S$0.8b(@31 Mar 2011)

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� SATORP Update @31 March 2011� Engineering phase: 97% � Procurement : 73% � Construction: 39% � Manpower on ground: > 5800 � Progress on track

SUMMARY- BUSINESS DEVELOPMENT

� Singapore� Focus on Jurong Island’s downstream projects� In discussions with fine chemical plant producers

setting up facilities here

� ASEAN

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� ASEAN � Direct negotiations continuing. Key markets of

Malaysia, Indonesia, Thailand and Vietnam.� Pursuing both greenfield and expansion projects� Exploring BOO / BOT opportunities

� Middle East� Business development ~ Saudi Arabia, UAE� Bidding for projects ~ Saudi Arabia� Continuing direct negotiations� Exploring BOO / BOT opportunities

SUMMARY- BUSINESS DEVELOPMENT (Cont.)

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� Europe� Prequalified and submitted bid� Anticipate demand for storage and distribution

terminals in Europe, including Turkey

QUESTION-&-ANSWERQUESTION-&-ANSWER

THANK YOUTHANK YOU