CosmoSteel Holdings Limited

Corporate Profile

Corporate updates

12 Sep 07: Exercise option to purchase new property at 21A Neythal Road to accommodate business growth

25 Oct 07: Appointment of Loh Ngiap Boon to GM to drive CosmoSteel’s overseas expansion.

23 Nov 07: KVA Energy: 50/50 JV with Federal to target energy projects in the Asia Pacific.

28 Nov 07: FY07 results - Net profit +24.9% to S$7.6m

7 May 08: HY08 results - Net profit +21.3% to S$4.2m

19 Nov 08: FY08 results - Net profit +27.9% to S$9.7m

6 May 09: HY09 results - Net profit +121.6% to S$9.3m

24 July 2009: Signs extension of supply agreement with ExxonMobil

Key developments since listing

Current Valuation

Listing date (SGX Main Board) 22 June 2007

IPO Share Price S$0.26

Share Price (Market close: 4 Sep 2009) S$0.485

Shares Outstanding 176,200,000

Market Capitalisation S$85.5 million

Our business

4

BusinessBacked by more than 25 years of track record, CosmoSteel sources and distributes piping system components

Products10,000 line items comprising mainly pipes, fittings and flanges sourced from a wide network from Europe, US and Asia (including Japan and the PRC)

Customer typesPredominantly companies in the Energy, Marine and Water infrastructure industries in Southeast Asia

Reputable key customersKeppel Group • SembCorp • Alstom Group •Exxon Mobil • Chevron • Shell Group of Companies

A leading supplier and distributor of piping system components to the Energy, Marine and Water infrastructure industries in Southeast Asia

Our products – Pipes, fittings and flanges

5

Flanges

• Types: Butt-weld • Forged outlet • Forged • Malleable

• Steel object used to join 2 sections of a pipe or other fittings together

• Types: Weldneck • Socketweld •Threaded • Slip-on • Blind • Lap-joint • Orifice

• Protruding rim or collar to secure 2 or more pipes to strengthen existing piping system

Pipes

Fittings

• Types: Welded • Seamless pipes

• A conduit consisting of a long hollow steel object to hold and conduct liquids and gases

Approximately 10,000 line items mainly made up of carbon steel or stainless steel products…

Customers types

6

Energy industry Marine industry

Our products are used for shipbuilding and repairs

Traders

We sell our products to traders who on-sell them to other customers

Our customers in other industries include manufacturing and pharmaceutical sectors

Others

Water industry

Our products are used for offshore rig fabrication (including jack-up and semi submersible-rigs), FPSO/FSO vessel conversion and building and onshore Energy facilities fabrication

We supply spiral welded pipes widely used in water treatment plants and other relatedinfrastructure projects in Singapore and the region

7

Warehousing facilities

← Location: 14 Lok Yang Way • Singapore

Use: Office and warehouse (with machineries to provide value-added services to customise products to customers’ specific requirements)

Site area: About 10,346 sq. m.

Floor area: About 8,673 sq. m.

(excluding voids)

Tenure: 60 years with effect from 16 June 1972

→ Location: 21A Neythal Road • Singapore

Use: Covered warehouse (with machineries to provide value-added services to customise products to customers’ specific requirements)

Site area: About 10,382 sq. m.

Floor area: About 5,742 sq. m.

Tenure: JTC lease with remaining tenure of 10 years

8

Sales and marketing

• Managers each have an average of 20 years experience in our industry

• Established wide and valuable contacts and customers

• Each team assigned a dedicated customer portfolio which allows them to build and entrenched relationship with each of the customers

Jack Ong Executive Director

Andy Ong Executive Director

Bernard Ong Senior General Manager

Lim Kim SengSales Manager

Michael Patrick SheehanSales Manager

Brenda ChongSales Manager

Loh Ngiap BoonGeneral Manager

9

Inventory management

Ready access to relevant historical and current data on:• Sales transactions• Purchases transactions• Inventory and accounts

Established controls for inventory carrying policy such as: • Minimum holding quantities• Standard reorder quantities

Purchase SalesERPERPERPERP

Inventory management process supported by integrated computerised system

Benefits

Quality assurance

CertificationCertificationCertificationCertification Year Year Year Year awardedawardedawardedawarded

ForForForFor

ISO 9002:1994 2000 Quality Management System

ISO 9001:2000 2003 Quality Management System

ISO 9001:2008 2009 Quality Management System

ISO 14001:2004 2009 Environmental Management System

OHSAS 18001:2007 2009 Occupational Health and Safety Management System

We are certified by BVQI for:Sales, Supply and Machining of Piping System components

World-class standards in Quality, Environment and Health and Safety Management Systems places CosmoSteel in a strategic position to become a preferred business partner to customers.

Key competitive strengths

11

FY2008 Highlights

Revenue (S$’m)

Growth: +102.6%

CAGR: +38.2%

FY2008 vs FY2007 revenue growth • From contribution from new Water infrastructure segment and expansion of inventory range

1HFY09 vs 1HFY08 revenue growth • From intensified marketing efforts and expansion in inventory volumes to meet customers’ demand

YE 30 Sep

Gross profit (S$’m) and margins (%)

Growth: +94.5%

CAGR: +33.4%

26.8% 24.6% 25.0% 28.5% 27.4%

YE 30 Sep

Net profit (S$’m)

Growth: +121.6%

CAGR: +26.1%

YE 30 Sep

Revenue by geographical market (%)

FY2007

S’pore 73%

Thailand 9%

M’sia 2%

Others 8%Vietnam 1%

Indo 7%

FY2008

S’pore 74%

Thailand 7%

M’sia 2%

Others 5%Vietnam 10%

Indo 2%

FY2008 vs FY2007• Continued strong revenue contribution from key market, Singapore, which grew 50.5% to S$79.1m • Vietnam contribution grew significantly to S$10.5m from new energy customers secured

1HFY09 vs 1HFY08• Significant increase in revenue contribution from the Middle East and Europe to S$36m from S$0.5m a year ago• Attributable to orders secured from new and existing customers in these regions

Revenue by customer type (%)

FY2008

Energy 47%Water 23%

Marine 18%

Trading 5%

Others 7%

FY2007

Marine 22%

Trading 11%

Others 8%

Energy 59%

FY2008 vs FY2007• Continued robust orders from the Energy and Marine segments which increased 18.2% and 20.6%

respectively to S$50.4m and S$19.6m• New contribution from Water infrastructure segment amounting to S$24m

• Supply of spiral welded pipes to water treatment and related infrastructure projects in Singapore and the region

1HFY09 vs 1HFY08• Revenue from Energy and Water infrastructure grew 219.6% and 128.7% respectively y-o-y• Together accounted for 83.2% of 1HFY09 revenue

18

Key financial indicators

Profitability Ratios (%)Profitability Ratios (%)Profitability Ratios (%)Profitability Ratios (%) FY06FY06FY06FY06 FY07FY07FY07FY07 FY08FY08FY08FY08

Return on Total Assets 24.48 20.04 17.28

Return on Equity 41.35 29.74 26.35

Efficiency Ratios (Days)Efficiency Ratios (Days)Efficiency Ratios (Days)Efficiency Ratios (Days) FY06FY06FY06FY06 FY07FY07FY07FY07 FY08FY08FY08FY08

Trade Receivables Turnover 70 100 99

Trade Payable Turnover 141 141 175

Inventory Turnover 160 142 190

Liquidity Ratios (Times)Liquidity Ratios (Times)Liquidity Ratios (Times)Liquidity Ratios (Times) FY06FY06FY06FY06 FY07FY07FY07FY07 FY08FY08FY08FY08

Current Ratio 1.77 1.99 1.63

Gearing ratio 1.20 0.93 1.33

Prospects and Strategies

Prospects

20

Growth of transhipment activities and shipping traffic in Singapore

• Seaborne transport accounts for bulk of world trade with Singapore being the world’s busiest container port.

Growth of shipbuilding and ship repair activities in Singapore and other regions

• Singapore is a natural hub for the marine industry in the Asian region – Strategic location and provision of good port facilities

Increasing demand for energy from continued industrialisation and economic growth

• Oil is the leading commodity for the world’s energy needs for the past four decades and is expected to continue in the long term, notwithstanding the short term volatility in prices of crude oil, particularly in 2008

– Increase in demand for specialised vessels, offshore structures and oil rigs– Increase in capex for offshore O&G exploration and production activities

Industry outlook

Marine and energyMarine and energyMarine and energyMarine and energy1111

•Rising need for new, upgrading and modification requirements forexisting aging offshore structures

Water Infrastructure Water Infrastructure Water Infrastructure Water Infrastructure

Platform installations2 Pipelines2 Singapore as global hydro-hub

• 410 platforms predicted to be installed in 2009, equating to $27.9b of Capex

• 1966 platforms predicted for installation through 2009-13, up from 1704 over the previous 5 years

• Global platform expenditure for the coming 5 years is predicted at $166.5b

• 23% of global platform Capex is associated to deep and ultra deep water installations – 2009-13

• 15,500km of pipeline and control line predicted through 2009

• Total expenditure through 2009-13 is predicted to reach $383b, equating to 109,500km of installed line

• Through 2009-13 Europe is considered to have the greatest market share, 30%, driven primarily by major trunkline installations

• 75% of installations are predicted to be in shallow water

• Government initiatives to develop water treatment technologies and solutions

• Over S$367 million water-related deals signed between governments, utilities providers and water companies at the Singapore International Water Week 20083

• Launch of Asia Infrastructure Project Development (AIPD) by ADB and SCE in 2008 to facilitate investment in the region’s infrastructure > expected to generate over S$150m worth of projects41“Oil and gas production and spend forecast 2008-2012”, Douglas-Westwood, 2008

2 Infield Energy Data Analysts: Fixed Platforms Market Update Report 2009/133“Singapore’s First Water Week Sees Deals Worth Over S$367m and International Initiatives to Boost Water Research and Investments”, ACN Newswire, 30 June 20084“Singapore government, ADB push for regional water infrastructure development”, Thomson Financial News, 15 April 2008

Future plans and strategy

Expand product range and valueExpand product range and valueExpand product range and valueExpand product range and value----added service capabilities added service capabilities added service capabilities added service capabilities

Business focus:

•Marine•Energy•Water infrastructure

Market focus:

•Asia Pacific•Middle East

Thank you

Q&A