Slide 1: 1H23 Financial Results
1H23 Financial Results 27 July 2023
Slide 2: Contents
CONTENTS 01 02 03 Address by CEO Financial highlights Appendices 2
Slide 3: Address by CEO
Address by CEO SS: <A = a3 [Gl Corporation
Slide 4: One Keppel, One Purpose
One Keppel, One Purpose Keppel is advancing as a global alternative real asset manager with deep operating capabilities. Removing conglomerate structure to create a horizontally-integrated model comprising Fund Management, Investment and Operating Platforms Advancing as one integrated business,
Slide 5: Delivering on strategy
Delivering on strategy In 1H23, Keppel delivered its highest net profit on record in 55 years. Adjusted net debt to Net profit S$3,627m EBITDAi 4.7x Strong financial position Significantly higher than S$498m for 1H22. Comparable with that of other global • Borrowings on fixed rates: 65% Excluding di
Slide 6: Superior returns
Superior returns Total distributions in 2023 Total shareholder return Cash: In-Specie: Significantly outperformed Straits Times Index over the 18-month period from 33.0 cts/share S$2.19i worth of SCM shares 1 Jan 2022 to 30 Jun 2023 distributed in-specie in Mar’23 for every 1H23 interim cash Keppel
Slide 7: Growing recurring income
Growing recurring income Recurring income by sources Recurring income by segments 62% growth in recurring income yoy, S$340m S$340m reflecting Keppel’s strategy, and 41 our shift away from lumpy EPC and development profits S$210m S$210m 310 40 44 307 76% 172 126 of net profit from continuing 38 30 (
Slide 8: Scaling up in asset management
Scaling up in asset management Laser-focused to grow FUM to S$100b by 2026 and S$200b by 2030, exploring organic and inorganic opportunities to drive growth. AUMi FUM Asset Management Feesii S$65.6b Connectivity 13% S$126m S$53.2b Connectivity S$111m S$116m Real Estate 16% 62% Real Estate 62% Infras
Slide 9: Seizing opportunities amidst volatility
Seizing opportunities amidst volatility Equity raised Capital deployed Assets divested In 1H23: S$1b S$1.1b S$0.5b In 2H23, increasing illiquidity in markets may avail more assets at attractive prices, presenting investment opportunities for Keppel. Actively marketing new flagship funds Keppel Susta
Slide 10: Driving asset monetisation
Driving asset monetisation Pace of monetisation expected to increase over time as market sentiments improve. Cumulative asset >S$4.8b monetisation target Announced since the start of asset monetisation programme in Oct 2020; includes ~S$420m in YTD 2023 3.5x S$17.5b S$3.8bi S$10 - S$12b Cash receive
Slide 11: The Keppel difference
The Keppel difference I Established asset manager with over 20 years of track record, seasoned management team and established LP network Funds raised Capital deployed Returns achieved FUM S$9.5b S$17.6b 17% IRR / 1.8x S$53.2b Capital raised Investments completed equity multiple As at end-Jun 2023 o
Slide 12: Connecting investors with Keppel's proprietary assets
Connecting investors with Keppel’s proprietary assets Providing exclusive access to high-quality, strategic infrastructure, real estate and connectivity assets that produce strong inflation-protected cash flows, leveraging Keppel’s deep operating capabilities. Keppel Sakra Keppel Data Bifrost Subsea
Slide 13: Operating platform
Operating platform K a > [EET Corporation
Slide 14: Premier infrastructure portfolio generating long-term recurring income
Premier infrastructure portfolio generating long-term recurring income Energy portfolioi Stable power contracts Long-term supply & services Renewables >99% of our customers are S$1.2b of new EaaS contracts ~3.0 GW locked in on fixed or indexed were secured in 1H23 across Conventional electricity pri
Slide 15: Deepening operating strengths in sustainable urban renewal and senior living
Deepening operating strengths in sustainable urban renewal and senior living Sustainable urban renewal China real estate • Expanding SUR offerings across • Despite slowing economic growth • Sino-Singapore Tianjin Eco-City Singapore, China, India, South in China, confident about mid-to- master develo
Slide 16: Growing foothold in digital networks and solutions
Growing foothold in digital networks and solutions Bifrost Cable System M1 Digitalisation • Achieved financial close with • 2nd largest mobile operator in M1’s enterprise revenue co-investors taking 60% stake in Singapore; customer base grew Keppel’s share of fibre pairs 12.5% yoy grew steadily • Mo
Slide 17: Advancing as a global alternative real asset manager
With sharpened focus and strong growth initiatives, Keppel is advancing as a global alternative real asset manager, with deep operating capabilities in Infrastructure, Real Estate and Connectivity. Image: Keppel Sakra Co-Gen Plant 17
Slide 18: Financial highlights
Financial highlights Keppel (eurreeiiiag)
Slide 19: Overview of 1H23 results
Overview of 1H23 results • Net profit grew significantly yoy to S$3,627m Net profit by segment • Excluding discontinued operations, net profit improved by 3% to S$445m from S$434m in 1H22 S$3,627m • All segments were profitable 3,182 • Annualised ROE improved to 36.8% in 1H23 from 8.4% in 1H22 S$498
Slide 20: 1H23 net profit (horizontal reporting)
1H23 net profit (horizontal reporting) (S$’m) Asset Mgmt Operating Incomei Valuation EPC/ Capital Net Profit Income Items Development Recycling Mgmt fees Sale of gas, utilities & Property EPC Disposal Performance fees electricity revaluation Development gains/loss Transaction fees Leasing i
Slide 21: Segmental results – Infrastructure
Segmental results – Infrastructure Infrastructure net profit • Net profit was S$291m, more than double 1H22 of S$139m • Strong operating income growth driven by higher net generation and margins from the integrated power business S$291m Partly offset by: S$139m • Lower EPC contributions from environ
Slide 22: Segmental results – Real Estate
Segmental results – Real Estate • Net profit was S$186m, compared to S$262m in 1H22 Real Estate net profit • Lower operating income mainly due to lower contributions from sponsor stakes, higher interest expense and costs incurred for new initiatives, as well as lower cost write-back in 1H23 S$262m •
Slide 23: Segmental results – Connectivity
Segmental results – Connectivity • Net profit of S$37m, 12% higher 1H22 of S$33m Connectivity net profit • Asset Mgmt Income was stable yoy • Higher operating income as M1 continued to achieve higher revenue from enterprise ICT S$37m S$33m & managed services • Partly offset by lower contribution fro
Slide 24: Appendices: Operational updates
Appendices 1. Operational updates
Slide 25: List of REITs/Trust
List of REITs/Trust As at 30 Jun 2023 Market Keppel’s Market value of No Listed REITs/Trust AUM No of assets Geographic presence capitalisation stake Keppel’s stake Singapore, Australia, 1 Keppel REIT S$3.4b S$9.2b 12 47% S$1,572m South Korea, Japan Singapore, Australia, China, Malaysia, Germany, 2
Slide 26: List of private funds
List of private funds As at 30 Jun 2023 Carrying value of Category No Funds / SMAs FUMi Keppel sponsor stakeii 1 Keppel Asia Infra Fund (KAIF) Infrastructure S$5.6b S$179m 2 K Private Credit Fund 3 Alpha Asia Macro Fund Trends Fund (AAMTF) III 4 Alpha Asia Macro Fund Trends Fund (AAMTF) IV 5 Alpha A
Slide 27: Vision 2030 asset monetisation
Vision 2030 asset monetisation Announced since the start of asset monetisation programme in Oct 2020 Period Value unlocked (S$m) Asset monetisation in YTD 2023 Value 2020 1,238.4 Asset Country unlocked (S$m) 2021 1,666.2 55 Gul Road facility Singapore 95.0 2022 1,514.9 Willowville Pte Ltd, Ho Chi Vi
Slide 28: Infrastructure Division updates
Infrastructure Division updates Integrated Power Business • Broke ground for Keppel Sakra Cogen Plant, Singapore’s first hydrogen-ready and most efficient power plant • Commenced FEED for green hydrogen and ammonia production for use in Australia and export to Asia with international partners • Rece
Slide 29: Real Estate Division updates
Real Estate Division updates As at 30 Jun 2023 Home sales 1H22 1H23 Residential landbank Units % • 1H23 home sales more than No. of units sold 1,010 2,170 Singapore 203 1% doubled yoy, mainly due to stronger performance in China - Singapore 10 40 China 16,972 43% and India - China 480 1,200 Vietnam
Slide 30: Data Centres & Networks Division and M1 updates
Data Centres & Networks Division and M1 updates As at 30 Jun 2023 Data Centres & Networks Data centre portfolio Owned by Keppel DC REIT Owned by Keppel & private funds • First phase of Building 1 at Keppel Geographical presence Asia Pacific, Europe Asia Pacific, Europe Data Centre Campus at Genting
Slide 31: Appendices: Additional financial information
Appendices 2. Additional financial information 31
Slide 32: Financial highlights
Financial highlights S$m 1H23 1H22 % Change Revenue 3,716 3,356 11 Operating Profit 572 355 61 EBITDA 826 684 21 Profit Before Tax 603 551 9 Profit from Continuing Operations 445 434 3 Profit/(Loss) from Discontinued Operations 3,182 64 >500 Net Profit 3,627 498 >500 EPS (cents) 203.0 27.9 >500 - Co
Slide 33: Infrastructure Segment
Infrastructure Segment S$m 1H23 1H22 % Change Revenue 2,488 2,144 16 Operating Profit/(Loss) 319 84 280 EBITDA 372 150 148 Profit/(Loss) Before Tax 348 155 125 Net Profit/(Loss) 291 139 109 n.m.f. denotes No Meaningful Figure 33
Slide 34: Real Estate Segment
Real Estate Segment S$m 1H23 1H22 % Change Revenue 531 577 -8 Operating Profit/(Loss) 199 187 6 EBITDA 321 365 -12 Profit/(Loss) Before Tax 251 331 -24 Net Profit/(Loss) 186 262 -29 n.m.f. denotes No Meaningful Figure 34
Slide 35: Connectivity Segment
Connectivity Segment S$m 1H23 1H22 % Change Revenue 695 635 9 Operating Profit/(Loss) 38 30 27 EBITDA 123 125 -2 Profit/(Loss) Before Tax 56 52 8 Net Profit/(Loss) 37 33 12 n.m.f. denotes No Meaningful Figure 35
Slide 36: Net profit by segment
Net profit by segment S$m 1H23 1H22 % Change Infrastructure 291 139 109 Real Estate 186 262 -29 Connectivity 37 33 12 Subtotal 514 434 18 Corporate & Others (69) - n.m.f Continuing Operations 445 434 3 Discontinued Operations 3,182 64 >500 Total 3,627 498 >500 n.m.f. denotes No Meaningful Figure 36
Slide 37: 1H22 net profit (horizontal reporting)
1H22 net profit (horizontal reporting) (S$’m) Asset Mgmt Operating Incomei Valuation EPC/ Capital Net Profit Income Items Development Recycling Mgmt fees Sale of gas, utilities & Property EPC Disposal Performance fees electricity revaluation Development gains/loss Transaction fees Leasing i
Slide 38: 1H22 net profit bridge (continuing operations)
1H22 net profit bridge (continuing operations) Energy & Urban Asset Corporate & S$m Connectivity Environment Development Management Others Net Profit by Segment 45 168 10 155 56 • Asset Mgmt Income 19 13 6 (38) - • REITs & Trust 17 79 12 (108) - • Private Funds (1) 6 6 (11) - • Others & Elimination
Slide 39: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 30 Jun 2023 31 Dec 2022 Shareholders’ Funds 10,765 11,178 Total Equity 11,484 11,913 Net Debt 9,848 9,238 Net Gearing Ratio 0.86x 0.78x Annualised ROE 36.8% 8.4% Annualised ROE (Excluding Discontinued Operations) 8.0% 7.3% Note: Net debt and net gearing ratio included lease l
Slide 40: Free cash flow
Free cash flow S$m 1H23 1H22 Operating profit 3,769 427 Depreciation & other non-cash items (3,435) (125) Working capital changes (423) (126) Interest & tax paid (225) (297) Net cash used in operating activities (314) (121) Investments & capex (537) (562) Divestments & dividend income 491 453 Divest
Slide 41: Appendices: Additional Real Estate information
Appendices 3. Additional Real Estate information
Slide 42: Sales achieved - Overseas
Sales achieved - Overseas Units Sold in Sales Value in Latest Key Projects Location 1H 2023 1H 2023 Avg. Selling Price China (RMB’m) (RMB’psm) Glory Land Shanghai 405 2,158 ~49,200 Seasons Residences Wuxi 107 277 ~21,900 North Island Site (UPED) Tianjin 625 589 ~9,600 Total 1,137 3,024 Indonesia (US
Slide 43: Residential landbank - Singapore
Residential landbank - Singapore As of end-Jun 2023 Remaining Remaining Total GFA Total Units Units Project Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Corals at Keppel Bay* 100% 99-yr 509,998 366 366 360 6 17,268 Reflections at Keppel Bay* 100% 99-yr 2,081,738 1,129 1,12
Slide 44: Residential landbank - China
Residential landbank - China As of end-Jun 2023 Remaining Remaining Total GFA Total Units Units Project Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Glory Land Shanghai 10% 93,871 576 576 405 171 18,258 Waterfront Residences 100% 318,977 1,401 1,347 1,343 58 1,038 Wuxi S
Slide 45: Residential landbank - Other Overseas
Residential landbank - Other Overseas As of end-Jun 2023 Remaining Remaining Total GFA Total Units Units Project Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Vietnam Saigon Sports City 100% 780,878 4,261 - - 4,261 451,905 Palm City 42% 495,900 3,042 1,586 951 2,091 214,9
Slide 46: Residential launch readiness – China
Residential launch readiness – China As of end-Jun 2023 Units Ready to Launch Project Location 2H 2023 2024 2025 Glory Land Shanghai 171 - - Waterfront Residences 58 - - Wuxi Seasons Residences 483 430 - North Island Site 405 1,903 2,647 Tianjin Waterfront Residences II 36 110 72 Hill Crest Residenc
Slide 47: Residential launch readiness – Other overseas
Residential launch readiness – Other overseas As of end-Jun 2023 Units Ready to Launch Project Location 2H 2023 2024 2025 Vietnam Saigon Sports City Velona - - 804 Riviera Point ^ Phase 1A - - 12 The View - 23 - The Infiniti 7 11 - Phase 2 - - 319 Empire City HCMC Narra Residences 10 - - Empire Sky
Slide 48: Expected completion for launched projects
Expected completion for launched projects As of end-Jun 2023 Total Units Launched as Units Sold as Units Remaining Expected Projects/Phases Launched Location Units at end-Jun 2023 at end-Jun 2023 as at end-Jun 2023 Completion China North Island Site (UPED Plot 83-08 1,232 1,232 1,230 2 1H2024 and 85
Slide 49: Expected completion for upcoming projects
Expected completion for upcoming projects As of end-Jun 2023 No. of Units Expected to be Completed Projects/Phases to be launched Location 2H 2023 2024 2025 China Waterfront Residences Wuxi 54 - - North Island Site Tianjin - - 1,823 Vietnam 6-ha Residential Project HCMC - 67 616 Total 54 67 2,439 49
Slide 50: Commercial projects - Under development
Commercial projects - Under development As of end-Jun 2023 Expected Projects under Development Location Stake GFA (sm) Development Cost ^ Completion Singapore Keppel South Central (formerly as Singapore 100% 60,370 TBC 2024 Keppel Towers) China Park Avenue Central Shanghai 99% 115,950 RMB 3.8b 2024
Slide 51: Commercial projects - Completed
Commercial projects - Completed As of end-Jun 2023 Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore I12 Katong Singapore 100% 27,140 19,730 2011 * China Trinity Tower 30% 70,000 48,600 2015 International Bund Gateway 29.8% 74,130 62,010 2018 Shanghai Keppel
Slide 52: Sino-Singapore Tianjin Eco-City
Sino-Singapore Tianjin Eco-City Recent residential land sales in the Tianjin Eco-City by SSTEC Selling Price Sales Value Land Area GFA Plot Date Plot Ratio (RMB’m) (Hectare) (sm) Based on Land Area Based on GFA (RMB’m/hectare) (RMB/sm) Plot 18b-2 Jun 2023 460 6.06 1.3 79,684 76 5,777 Plot 35 Apr 202
Slide 53: 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