KBC Advanced Technologies plc Investor Presentation Half-Year Results 30 June 2004.

KBC Advanced Technologies plc

Investor Presentation

Half-Year Results

30 June 2004

2

Agenda

1. Review of 1st half 2004 slides 3 – 4

2. Strategy update slides 5 – 9

3. Financial summary slides 10 – 18

4. Customer market conditions and outlook slides 19 – 20

Appendix: Background on KBC slides 21 – 24

3

Overview – First half 2004

Business is in transition

Realignment of KBC services to client needs in progress

Strengthening client relationships and key account management

Investment in developing software applications and best practices

Strong growth in software revenue

Repositioning for growth in 2005

4

Operational highlights – First half 2004

Launch of ProfitManager applications and best practices in May

Improved sales performance in UK office with good contract wins in FSU, Middle East and South Africa

Sales remain strong in Japan and Korea

Revenue in the Americas reduced from previous years

Process and other consulting revenues remain under pressure during the transition

Growth in Software, Planning, Upstream and Petrochemicals

5

Refocus on client relationships and regional business strategies

Implement strategy for growth for 2005 and beyond

Restructure core business to deliver competitive advantage through

continuous profit improvement built on sustainable partnerships

Evolve scope and functionality of Petro-SIM and ProfitManager to

support industry best practice

Broaden consulting into Strategic Planning and Risk Management

Diversify and expand into Petrochemical and Upstream markets

Align internal work processes and implement new MIS

Strategy

6

Sustain

MonitorOptimizeAdjust

Implement

Refinery performanceProcess operationsBase case simulation

Evaluate

Identify

BenchmarkPetro-SIMSoftware

Interview and observeApply engineering fundamentalsChallenge constraints

Technical feasibilityOperating feasibility Economics

MonitoringTools

Profit TrackerManagement Tools

Continuous Improvement PlanDemonstrate Report

ProfitManager - Continuous Improvement Process

7

8

Petro-SIM

Development team recruited in August comprised of ex-Hyprotech employees

Petro-Sim release announced on 8 September 2004

Initial release in October 2004

First update scheduled for first quarter 2005

Discussions with customers under way

Demonstration in September at annual NPRA conference

9

Petro-SIM

Naphtha Hydrotreater

CDU

Reformer

Visbreaker

FCC

HF Alky Unit

Blend optimizerKero Hydro treater

DieselHydro treater

10

Summarised profit and loss account

Turnover 15,907 16,69932,274Operating profit 487 39704Goodwill amortisation (245) (280)(490)Other operating exceptional items (496) (1,020)(2,397)Net Interest 26 74 200Loss before tax (228) (1,187)(1,983)Taxation 79 171 499Loss after tax (149) (1,016)(1,484)Dividends (93) (605)(1,906)Retained loss (242) (1,621)(3,390)

Earnings/(loss) per share - basic (0.32p) (2.18p) (3.19p) - fully diluted (0.32p) (2.15p) (3.17p) - basic before goodwill

and exceptional items 0.91p (0.02p) 1.37p Average number of shares in issue 46.5m 46.5m 46.5m

6 months to 6 months to 12 months to30 Jun 2004 30 Jun 2003 31 Dec 2003

£000 £000 £000

11

Foreign exchange impact

Turnover 15,907 16,878 16,699

Operating costs 15,420 16,303 16,660

_____ _____ _____

Operating profit before

goodwill and exceptional 487 575 39

items _____ _____ _____

6 months to 6 months to 6 months to30 Jun 2004 30 Jun 2004 30 Jun 2003

£000 £000 £000at constant

exchange rate

12

Exceptional costs

Software dispute, legal fees, etc 496 1,325

Reorganisation - 878

Strategic review - 194

___ _____

Total 496 2,397

6 months to Year ended30 Jun 2004 31 Dec 2003

£000 £000

13

Summarised group cash flow statement6 months to

30 Jun 2004

£000

6 months to

30 Jun 2003

£000

12 months to 31 Dec 2003

£000

Net cash from operations 1,243 (892) 275

Operating exceptional items (282) (1,021) (1,846)

Net interest received 26 74 200

Tax (paid) refunded (214) 352 769

Capital expenditure (259) (112) (257)

Dividends paid (1,302) (1,302) (1,906)

Translation difference (33) (19) (173)

Net cash outflow from acquisitions - - (410)

(821) (2,920) (3,348)

14

Summarised group balance sheet

Fixed assets 6,353 7,630 7,071

Net current assets (excl cash) 8,879 9,208 8,032

Cash 3,454 4,294 4,275

Creditors due after 1 year - (300) (300)

Provisions (1,132) (704) (1,180)

Net assets 17,554 20,128 17,898

Share capital and reserves 6,781 6,781 6,781

Profit and loss 10,773 13,347 11,117

17,554 20,128 17,898

Note: 2003 comparatives restated for UITF38 reclassification of ESOP investment in own shares

At 30 Jun At 30 JunAt 31 Dec

2004 20032003£000 £000£000

15

Revenues by region

2003 12 mths - £m

8.6

17

6.6

Europe/Middle East/Africa Americas Asia

2004 6 mths - £m

5.6

5

4.6

Europe/Middle East/Africa Americas Asia

20% 27%

53%

37%

33%

30%

2003 6 mths - £m

4.2

10.3

2.2

Europe/Middle East/Africa Americas Asia

13% 25%

62%

16

Revenues by business area

12.4

1.9 1.7

12.0

2.1

13.3

2.82.2

14.5

5.3

1.8

5.0

9.0

6.2

8.0

6.2

1.6

5.5

2.2

6.8

4.9

2.62.4

12.1

1.9 1.8

7.2

Process Consulting Other Consulting Software

H1'00 H2'00 H1'01 H2'01 H1'02 H2'02 H1'03 H2'03 H1'04

17

Consultant utilisation

74 73 7275 74

78

65

0

10

20

30

40

50

60

70

80

90

%

18

Order book value

0

5

10

15

20

25

30

Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04

£ M

illio

n

within next 12 mths - base fees within next 12 mths - fees @ risk

> 12 mths ahead - base fees > 12 mths ahead - fees @ risk

19

Market observations

Refinery utilisation and margins at an all-time high

Plans/projects for increased capex for expansion/upgrade

Renewed emphasis on energy conservation

Efficiency improvements increasingly driven by best practices

Recognition of shortage of key skills and experience

20

Outlook for 2004

Revenues expected to remain flat in second half

Additional costs of Petro-SIM development in second half estimated

to be annual cost of £1m with £400k impacting 2004

Operating profit before exceptionals and goodwill for full year

expected to remain flat compared with 2003

Year of transitionClient relationship buildingWork on strategic initiativesInvestment in software development

Activity level high

Consultant morale and enthusiasm restored

21

KBC – “The preferred partner to deliver sustainable competitive advantage”

Leading independent consultants to the downstream oil industry

Serves the refining, petrochemical and process industries

Proprietary software tools and methodology, together with

unrivalled experience of consultants are key differentiators

Global operations serving over 200 clients worldwide

APPENDIX

22

KBC evolution

1979KBC founded as independent consulting company, specialised in energy improvement in refineries

1983 First yield & energy study applied to petrochemicals (ethylene plant)

1986 Development of Petrofine simulation software leads to first refinery-wide Yield & Energy Survey

1993 Yield & Energy Survey develops into comprehensive Profit Improvement Program (PIP)

1995 On-site Implementation Services takes KBC profit improvement deliverable to a new dimension

1996 Development of new business area in Reliability, Availability & Maintenance

1997

2000 KBC extends its operations to include a comprehensive risk management program with the acquisition of Risk Solutions

2000

2004

KBC extends into oil and gas market analysis with PEL acquisition and enhance energy services with Linnhoff March acquisition

2002

Core skills and competencies extrapolated into Petrochemicals, Gas Processing and Energy industries

KBC Office Locations

KBC establishes Moscow office to serve FSU clients

KBC Listed on the London Stock Exchange

23

Global Track Record

24

Delivering competitive advantage

Technology

& Tools

Methodology

People

Technology

& Tools

Technology

& Tools

Methodology

PeoplePeople

Mission and Strengths

in partnership with our clients

Independence

Proven track record

Methodology

Unique toolsets

Breadth & depth of experience

Change management experience