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KBC Advanced Technologies plc

Investor Presentation First Half Results 30 June 2006

7 September 2006

Highlights

• Significant turnaround in business - return to profitability • Revenues of £17.3m up 27% from prior year • Strong current trading and contract awards • Continued growth in revenues and earnings expected in second half

Strategy

• New management team initially focused on improved profitability and delivering results through: – – – Improved contract execution Increasing revenues from high margin software Establishing a significant Petro SIM™ installed base • Longer term aim to expand services to align with client needs : – – – Leverage lower Asian cost base to deliver an increasing proportion of revenues Continued organic growth in scope of services Supplemented by suitable acquisitions and alliances

Operational overview

• • • • • • Growth in all operating regions Increasing presence in Asia; Beijing office opened in May Petro SIM sales increased to 32 sites, total sales £4.9m to date Petro-SIM

Express

, launched in June, provides additional market opportunity Collaboration with EPC contractors enhancing KBC’s market reach in all operating regions TTS acquisition completed and cross-selling opportunities being delivered

Operational overview (cont’d)

• Consulting services: – Sinopec – continued progress on two major Profit Improvement Programs – Recent Pemex award – US$6.3m 5-site clean fuels study including software • Technical services partnerships – growing source of long-term revenue and earnings worldwide • Strategic financial services – Inter-America Development Bank and other M&A related engagements • Human Performance Improvement – TTS projects with major US oil companies

Summarised group income statement – first half 2006

6 months to 30 Jun 2006 £000

6 months to 30 Jun 2005 £000 12 months to 31 Dec 2005 £000

Revenue Profit/(loss) before tax and financing 17,288 399

Net Interest

Profit/(loss) before tax

(18)

381

Taxation

Profit/(loss) after tax

(142)

239 13,601

(1,673) (12) (1,685) (77)

(1,762)

28,493 (2,037) 3 (2,034) (15)

(2,049) Earnings/loss per share

– basic 0.46p

 diluted 0.44p

(3.67p) (3.67p) (4.23p) (4.23p) Average number of shares in issue 51m 48m 48.5m

Summarised group cash flow statement – first half 2006

Net cash flow from operations

Operating exceptional items Net interest (paid)/received Tax paid Capital expenditure Issue of shares Acquisition of TTS (net of funds acquired) Translation difference

6 months to 30 Jun 2006 £000

6 months to 30 Jun 2005 £000 12 months to 31 Dec 2005 £000

(831) (18)

(288) 665 (12) (381) 695 3

(427) (83) 1,126 (1,117)

(705) (137) (726) (270) 763 762 -

(13) (1,363)

4 290 23 106

Summarised group balance sheet – first half 2006

Non-current assets Current assets (excl cash) Net cash Non-current liabilities Current liabilities Net assets Share capital and reserves Retained earnings

6 months to 30 Jun 2006 £000

10,889 12,044 439 (105) (5,621) 17,646 6 months to 30 Jun 2005 £000 7,695 11,040 1,986 (4,343) 16,378 12 months to 31 Dec 2005 £000 7,907 10,806 1,802 (172) (4,110) 16,233 7,759 9,887 17,646 6,076 10,302 16,378 6,068 10,165 16,233

Contract awards by region – first half 2006

0.0

2006 1.0

2.0

6 m to June 2005 3.0

ASIA AMERICAS EMEA

4.0

£ million

5.0

6.0

Contract awards since 30 June

• Cumulative contract awards at end of August ahead of 2005: 2005 2006 • Pemex Refinaci ón, Mexico – – – US$6.3m announced in August Clean fuels studies, refinery configuration work Petro-SIM license with multiple refinery simulation models

Order book value – first half 2006

Dec-05 Jun-06 11

Market overview

• Oil refining fundamentals remain unchanged: – Record refining margins and crude prices – Shortage of processing capacity – More heavy crude to be processed

Market overview

Refinery capacity and oil/product demand forecasts

Source: KBC PEL Market Services

Market overview

• • Tightening in industry characteristics provides opportunities for KBC The business is being shaped to deliver services related to: – Large-scale investment plans for new refineries and refinery upgrading – – Heightened focus on plant reliability and availability Safe operating procedures – – Shortage of skilled engineering resources Increased transaction activity in refining assets

KBC’s opportunity

• Continued focus on consulting and services to meet the needs of our clients in this buoyant environment: – Capital project support – Operational excellence – Strategy consulting and investment planning – Continuing PIP opportunities

Outlook

• Recent contract awards underpin our expectations for 2006 • Robust market environment delivering significant opportunities for continued organic growth • Profitable acquisition opportunities will continue to be pursued • Confidence in our ability to deliver growth in earnings in 2007 and beyond

Appendices

Global track record

KBC evolution

2006

Beijing office opens

2006

Acquisition of TTS

2005

Petro-SIM launch

KBC Office Locations 1979 1997 2002

KBC extends into oil and gas market analysis with

PEL

acquisition and enhances energy services with

Linnhoff March

acquisition KBC listed on London Stock Exchange

1986 1993 1996

Development of new business area in

Reliability, Availability & Maintenance

Yield & Energy Survey develops into comprehensive

Profit Improvement Program (PIP)

Development of

Petrofine

simulation software leads to first

refinery-wide Yield & Energy Survey

KBC founded as

independent consulting company

, specialised in energy improvement in refineries

Mission and strengths

Delivering competitive advantage …

 Independence  Proven track record  Methodology  Unique toolsets  Breadth & depth of experience  Change management experience

KBC’s solution

KBC offers independent consulting and cutting edge technology that enable its worldwide owner/operator clients in the oil & gas, refining, petrochemical, and other processing industries to increase their competitive advantage within defined markets through Capital Excellence and Operational Excellence in business performance and asset utilisation • • CapX = Capital Excellence – Typically decided at the client HQ level OpX = Operational Excellence – Typically decided at the plant level

Capital Excellence (CapX)

KBC supports client growth strategies and capital utilisation through Capital Excellence consulting that supports activities for acquisitions, disposals and construction of new facilities

Operational Excellence (OpX)

KBC supports client progress towards Operational Excellence through: – An OpX model describing best practices for production-centered manufacturing – – Assessments, strategy development and deployment, and process and profit improvement Other unique offerings

Petro-SIM

Revenues by business area – first half 2006

8.2

8.0

7.2

6.8

5.3

5.9

6.2

5.5

4.9

5.4

5.5

4.8

5.6

1.6

2.2

2.6

1.9

2.0

3.3

2.8

Revenues by region – first half 2006

2006 6 mths - £m 2005 12 mths - £m

6.6

37% 28% 34%

5.9

9.7

34% 30% 36%

10.5

8.3

Europe/Middle East/Africa Americas Asia 4.8

Europe/Middle East/Africa Americas Asia

2005 6 mths - £m

4.2

30% 32% 38%

5.1

4.3

Europe/Middle East/Africa Americas Asia

Slide 1

Transcript Slide 1

KBC Advanced Technologies plc

Investor Presentation First Half Results 30 June 2006

Highlights

Strategy

Operational overview

Operational overview (cont’d)

Summarised group income statement – first half 2006

Summarised group cash flow statement – first half 2006

Summarised group balance sheet – first half 2006

Contract awards by region – first half 2006

Contract awards since 30 June

Order book value – first half 2006

Market overview

Market overview

Market overview

KBC’s opportunity

Outlook

Appendices

Global track record

KBC evolution

Mission and strengths

KBC’s solution

Capital Excellence (CapX)

Operational Excellence (OpX)

Petro-SIM

Revenues by business area – first half 2006

Revenues by region – first half 2006

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