Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — 1H FY16 Earnings Presentation
25 slides from Keppel Infrastructure Trust's earnings presentation, Jul 18, 2016
Slide 1: Keppel Infrastructure Trust 2Q FY16 and 1H FY16 Results Presentation
Not for distribution in the United States Keppel Infrastructure Trust 2Q FY16 and 1H FY16 Results Presentation 18 July 2016
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue or any solicitation of any offer or invitation to purchase or subscribe for any units in Keppel
Slide 3: Financials snapshot
Financials snapshot DPU (S Cents) Distributable Cash Flows (S$’m) ^ 3.03 ^ ^ 78.7 48.9 38.0 32.9 0.93 0.93 1.86 1.71 2Q FY16 2Q FY15 1H FY16 1H FY15 2Q FY16 2Q FY15 1H FY16 1H FY15 NAV Per Unit (S Cents) Gearing* 35.3 32.4 36% 35% 30 Jun 16 31 Dec 15 30 Jun 16 31 Dec 15 ^ Relates to pre and post com
Slide 4: Distributable cash flows
Distributable cash flows S$’m 2Q FY16 2Q FY15 Explanations City Gas 12,062 7,309 • 2Q FY15 was lower due to the time lag in the adjustment of gas tariffs to reflect actual fuel cost for City Gas Concessions 17,355 16,989 • Better performance mainly due to progressive completion of Senoko boiler upgr
Slide 5: Diversified portfolio of core infrastructure assets
Diversified portfolio of core infrastructure assets 1H FY16 EBITDA (1) Total Assets as at 30 Jun 2016 KMC Corporate 41% 6% Concessions KMC 18% Concessions 42% 17% City Gas 12% Basslink 12% City Gas Basslink 30% 22% (1) Excludes Trust / corporate expenses. Long term, regular and predictable cash flow
Slide 6: Business updates
Business updates Units Business updates City Gas • Customer base grew by approximately 4% from about 737,000 as at the end of 2Q FY15 to about 766,000 as at the end of 2Q FY16 • Achieved 100% plant availability Concessions • Consist of Senoko WTE, Tuas WTE, SingSpring and Ulu Pandan NEWater plants i
Slide 7: Regular and stable distributions
Regular and stable distributions DPU (S cents) S cents/unit 2.5 2Q FY16: 0.93 Singapore cents 1.98 Book closure date: 26 July 2016 2 Distribution Payment date: 19 August 2016 1.5 1.05 1 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 1QFY14 2QFY14 3QFY14 4QFY14 Pre Combination Post Combination 1Q
Slide 8: Balance sheet
Balance sheet S$’m 30 Jun 16 31 Dec 15 Total assets 4,061 4,115 • Borrowings increased as the Trust drew down loans to repay one of its subsidiaries Total liabilities 2,596 2,515 and to fund the boilers upgrade for Senoko WTE plant Borrowings 1,706 1,674 • Unitholders’ funds and NAV per Unit decreas
Slide 9: Sustainable gearing
Sustainable gearing As at Jun 2016 Excluding • Sustainable gearing backed by S$’m Total Basslink Cash 251 208 Long term contracts expiring between 2024 and 2046 Borrowings 1,706 1,007 Credit worthy customers and Net debt 1,455 799 City Gas’ large and stable Total assets 4,060 3,155 customer base
Slide 10: Prudent capital management
Prudent capital management Debt Overview Debt Breakdown • Blended average interest rate of 4 - 5% Debt repayment profile − Singapore average: 3 – 4% > 5 yrs < 1 yr 1.6% 1.8% − Australian average: 6 – 7% − ~85% of loans are hedged • Weighted average term to expiry of ~3.6 years − ~100% of KIT’s loans
Slide 11: Uniquely positioned to deliver long term value and growth
Uniquely positioned to deliver long term value and growth 1 Largest Singapore infrastructure focused business trust 2 Diversified portfolio of core infrastructure assets 3 Long term contracts with credit worthy customers / large and stable customer base 4 Generate long term, regular and predictable
Slide 12: Appendix I: Additional financial information
Appendix I: Additional financial information 11
Slide 13: City Gas' results
City Gas’ results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 70,450 78,332 (10.1) 140,992 160,944 (12.4) Other income 404 390 3.6 790 647 22.1 Other gains/(losses) - net 392 (83) N/M 597 (110) N/M Expenses Fuel and electricity costs (19,426) (33,508) (42.0)
Slide 14: Concessions' results
Concessions’ results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 28,056 26,058 7.7 55,970 40,226 39.1 Other income 181 229 (21.0) 367 314 16.9 Expenses Fuel and electricity costs (2,647) (3,999) (33.8) (5,207) (6,956) (25.1) Depreciation and amortisation (1,
Slide 15: Basslink's results
Basslink’s results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change A$'000 A$'000 % A$'000 A$'000 % Revenue 5,168 14,790 (65.1) 6,325 30,618 (79.3) Other income 15,420 239 >100 15,614 485 >100 Other (losses)/gains - net (1,363) 595 N/M (2,691) 1,025 N/M Expenses Fuel and electricity costs (55) (79) (30
Slide 16: KMC's results
KMC’s results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 32,561 32,565 (0.0) 63,156 32,565 93.9 Other income 700 372 88.2 2,366 372 >100 Other losses - net (248) (37) >100 (492) (37) >100 Expenses Depreciation and amortisation (18,921) (18,879) 0.2 (37,848)
Slide 17: 2Q FY16 profit after tax to distributable cash flows
S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 3,868 971 2,397 (19,066) 19,469 7,639 Add/(less): Reduction in concession/lease receivables - 12,672 - - - 12,672 Non-cash finance cost 96 7 1,253 150 32 1,538 Other non-cash items (468) - 852 30 154 568 Adjustment for cas
Slide 18: 2Q FY15 profit after tax to distributable cash flows
S$'000 City Gas Concessions Basslink KMC Others Group (Loss)/profit after tax (1,728) 217 (4,287) (18,506) 19,575 (4,729) Add/(less): Reduction in concession/lease receivables - 12,142 - - - 12,142 Non-cash finance cost 95 8 1,287 116 93 1,599 Other non-cash items 27 226 (1,136) 746 100 (37) Transac
Slide 19: 1H FY16 profit after tax to distributable cash flows
S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 8,417 2,079 (13,093) (39,311) 40,030 (1,878) Add/(less): Reduction in concession/lease receivables - 25,195 - - - 25,195 Non-cash finance cost 191 14 2,476 310 32 3,023 Other non-cash items (689) - 1,643 (87) 616 1,483 Adj
Slide 20: 1H FY15 profit after tax to distributable cash flows
S$'000 City Gas Concessions Basslink KMC Others Group (Loss)/profit after tax (755) 1,676 (7,684) (18,506) 23,739 (1,530) Add/(less): Reduction in concession/lease receivables - 17,621 - - - 17,621 Non-cash finance cost 189 16 2,605 116 186 3,112 Other non-cash items 40 226 (2,156) 746 167 (977) Tra
Slide 21: Outstanding loans
Outstanding loans Entity Outstanding Maturity Repayment amounts (S$’m) City Gas 178.0 Feb 2019 Bullet* SingSpring 76.2 Oct 2024 Amortising Basslink 707.9 (A$709.3) Nov 2019 Amortising* KMC 700.0 Jun 2020 Bullet* KIT 57.0 Feb 2019 Bullet* * To be refinanced upon maturity 20
Slide 22: Appendix II: Overview of KIT
Appendix II: Overview of KIT 21
Slide 23: Asset, business, customer, contract expiry and revenues
Asset Business Customer Contract Expiry Revenues Senoko Plant 2,275 tonnes/day NEA 2024 Principally availability waste incineration concession in payment Singapore(1) Tuas DBOO Plant 800 tonnes/day NEA 2034 Principally availability waste incineration concession in payment Singapore Ulu Pandan Plant
Slide 24: KIT's shareholding structure
KIT’s shareholding structure • Keppel Corporation completed the consolidation of its asset management businesses under Keppel Capital in July 2016 • This includes a 100% interest in Keppel Infrastructure Fund Management (KIFM), the Trustee-Manager of KIT • KIFM will be able to leverage the scale and
Slide 25: Thank you
Thank you iGt | Infrastructure Trust 24
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