Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (August 2017)
19 slides from Keppel Infrastructure Trust's investor presentation, August 2017
Slide 1: Investor Presentation
Investor Presentation August 2017
Slide 2: Disclaimer
Disclaimer Not for distribution in the United States 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 pur
Slide 3: At a Glance
At a Glance Key Highlights Financial Snapshot One of Singapore’s largest infrastructure business trust Market Value (1) Generates long-term, regular and predictable cash flows Market Capitalisation S$ 2,122 m from a diversified portfolio of core infrastructure assets: Enterprise Value S$ 3,706 m S
Slide 4: Large & Well-diversified Portfolio of Core Infrastructure assets
1 Large & Well-diversified Portfolio of Core Infrastructure assets Investment Criteria Portfolio of highly strategic assets Telecoms KIT aims to provide Unitholders Utilities Infrastructure Power Infrastructure Infrastructure with long-term, regular and predictable distributions by Singapore DataC
Slide 5: Generates long-term predictable cash flows uncorrelated to GDP
2 Generates long-term predictable cash flows uncorrelated to GDP… Asset Business Customer Contract Terms Cash Flows Senoko WTE Plant 2,310 tonnes/day NEA, Singapore 2024 Principally fixed availability waste incineration concession government agency payment Tuas WTE Plant 800 tonnes/day NEA, Singapor
Slide 6: Supporting Regular and Stable Distributions
2 … Supporting Regular and Stable Distributions DPU (S cents) S cents/unit 2.5 2Q FY17 DPU: 0.93 Singapore cents Book closure date: 25 July 2017 1.98 2 Distribution Payment date: 18 August 2017 1.5 1.05 1 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 (1) (2) (1) Lower DPU in
Slide 7: Diversified Portfolio of Core Infrastructure Assets
3 Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets 1H 2017 Adjusted EBITDA (1) Total Assets as at 30 Jun 2017 Corporate KMC(2) 2% 22% (2)
Slide 8: Strong Balance Sheet
4 Strong Balance Sheet As at 30 June 2017 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 232 188 between 2024 and 2046 Borrowings 1,816 1,087 Creditworthy customers and City Gas’ large and stable Net debt 1,584 899 customer base Recurring and stable Tot
Slide 9: Three-pronged Growth Strategy
5 Three-pronged Growth Strategy 1 Organic Growth from Existing Portfolio 2 Keppel Synergy 3 Acquisition Strategy KIT New Investments Assets that generate long term Keppel Capital stable cash flows with some growth Singapore and other developed Co-investment, bridge financing Potential Upsides
Slide 10: Attractive Risk Adjusted Returns
6 Attractive Risk Adjusted Returns Infrastructure trusts Singapore Industrial REITs 11.4% Average: 7.4% Average: 6.9% 10.0% 8.1% 8.3% 8.0% 6.9% 7.1% 6.8% 6.7% 5.8% 6.1% 6.1% 6.1% 5.3% 5.6% 5.2% Accordia Golf Ascendas India Asia Pay NetLink NBN Hutchinson Keppel Keppel AIMS AMP Ascendas REIT Cache Lo
Slide 11: Key Investment Highlights
7 Key Investment Highlights KIT is well-positioned to deliver long-term value and growth to Unitholders. 1 One of Singapore’s largest infrastructure business trust 2 Diversified portfolio of core infrastructure assets 3 Long term contracts with credit worthy customers or large and stable customer ba
Slide 12: Additional Information
Additional Information CGPS] Infrastructure Trust
Slide 13: Keppel Infrastructure Trust Structure
Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise Institutional and asset management platform and track record in this industry Public Investors ~18%
Slide 14: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure’s Pipeline Keppel Merlimau Cogen (KMC) - 49% through Keppel Energy Operational since 2007, with a total generation capacity of 1,300 MW KI, as the sponsor of KIT, owns 49% shareholding in KMC through Keppel Energy Changi Business Park - 100% through Ke
Slide 15: Key Differences: Business Trusts, REITs and Listed Companies in Singapore
Key Differences: Business Trusts, REITs and Listed Companies in Singapore Business Trust S-REIT Listed Company Regulatory Regime • Business Trusts Act • Code on Collective Investment • Companies Act Scheme Constitution • Not a separate legal entity • Not a separate legal entity • A separate legal en
Slide 16: KIFM Management Fee Structure
KIFM Management Fee Structure Management Fee • S$2.0 million per annum • Inflation adjustment in reference to the CPIS Performance Fee • 4.5% p.a. of sum of cash flow received by KIT Acquisition Fee • 0.5% of the Enterprise Value of any investment acquired, where the investment is acquired from: − S
Slide 17: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 65.8 Dec 2024 Amortising 735.6 Basslink Nov 2019 Amortising* (A$705.9) KMC 700.0 Jun 2020 Bullet* KIT 145.6 Feb 2019 Bullet* * To be refinanced upon maturity 16
Slide 18: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~87% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non- > 5 yrs < 1 yr recourse 1.1% 1.5% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Wei
Slide 19: Thank You
Thank You www.kepinfratrust.com 18
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