Keppel Ltd. · SGX:BN4
Keppel — Merger or Acquisition (November 2023)
11 slides from Keppel's merger presentation, Nov 29, 2023
Slide 1: Accelerating Transformation: Proposed acquisition of Aermont Capital
Accelerating Transformation: Proposed acquisition of Aermont Capital, a leading European asset manager 29 November 2023
Slide 2: Strategic proposed acquisition to accelerate Keppel's transformation as global asset manager and operator
Strategic proposed acquisition to accelerate Keppel’s transformation as global asset manager and operator Unique and strategic opportunity for Keppel to acquire Aermont Capital, a leading European platform, with strong recurring fees and a premium PERE 2023: #1 European real estate global LP network
Slide 3: Highly synergistic acquisition
Highly synergistic acquisition Aermont will be Keppel’s European real estate platform. Immediate, significant foothold in Europe 1 Expands asset management capabilities beyond Asia Pacific, bolstering Keppel’s presence and value proposition to global LPs Accelerating FUM growth by initial S$24bi 2 F
Slide 4: Fortifying Keppel's presence in Europe
Fortifying Keppel’s presence in Europe Diversified real estate portfolio across 10 key cities in Europe Expands Keppel’s network with Aermont’s global blue-chip LPs >50 global LPs 8 of 15 largesti LPs Public pension funds, SWFs, are new to Keppel endowments and foundations Geographic profile of LPsi
Slide 5: Expanding management capabilities
Expanding management capabilities Aermont’s operating culture is similar to and a good fit with Keppel’s, with a strong emphasis on value-adding and active management. Operator-oriented DNA Focus on creating prime assets and businesses with: Leading Inflation-protected Good growth positions cashflow
Slide 6: Strong performance and track record
Strong performance and track record European Proactive, Operator- Culture: Discipline, Solid Returns, Specialists Oriented DNA Creativity, Expertise Moderate Risk Profile 5 Pan-European Opportunistic Funds Single-asset EUR3.8b equity raised +90% GBP 3.0b equity raised +33% EUR2.0b +15% equity raised
Slide 7: Accelerating growth towards FUM target
Accelerating growth towards FUM target Aermont’s opportunistic strategy strongly complements Keppel’s core and value-add investment approach. S$200b Potential to leverage Keppel's expertise to co-create S$60b new fund products and platforms for growth Potential to further grow FUM by up to 2.5x by 2
Slide 8: Compelling deal structure
Compelling deal structure 1H 2024 2028 Phase 1: Transition Phase 2: Acquisition of first period Acquisition of 50% stake remaining 50% stake • Performance-based structure Consideration tied to Aermont’s actual financial results • Attractive implied valuation 13x EV/EBITDA in Phase 1 • Long-term inte
Slide 9: Earnings-accretive and minimal impact on gearing
Earnings-accretive and minimal impact on gearing When completed, the acquisition of the initial 50% will bolster Keppel’s recurring incomei and FUM, with an approximate one percentage point impact to the Company’s net gearing on a pro forma basis. Net Tangible Assets Earnings per Share Recurring Inc
Slide 10: The strategic proposed acquisition of Aermont is a pivotal step forward in Keppel's ambition
The strategic proposed acquisition of Aermont is a pivotal step forward in Keppel’s ambition to be a global asset manager and operator, availing us of a highly attractive European platform with strong recurring fees and a premium network of global LPs. As we grow our recurring income and achieve our
Slide 11: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR