Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — FY2023 Earnings Presentation
35 slides from Keppel Infrastructure Trust's earnings presentation, Jan 31, 2024
Slide 1: Second Half and Full Year 2023 Financial Results
Second Half and Full Year 2023 Financial Results 31 January 2024
Slide 2: Outline
Outline 2H and FY 2023 Highlights 3 Business Updates 7 Financial and Capital Management 13 Growth and Value Creation 17 Commitment to Sustainability 22 Additional Information 25 Constituent of: Awards and Accreditations1: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 1. Keppel Infrast
Slide 3: 2H and FY 2023 Highlights
2H and FY 2023 Highlights European Onshore Wind Platform
Slide 4: FY 2023: Record Year
FY 2023: Record Year Driven by strong portfolio performance from growth and value creation Record EBITDA, Distributable Income and DPU Record EBITDA Record DPU (cents) $447.6m1 6.193 Record DPU 3.72 3.72 3.78 3.82 Up 11.3%y-o-y 62% y-o-y including special FY 2023 Total Returns4 distribution of 2.33
Slide 5: Driving Portfolio Growth through Acquisitions and Value Creation
Driving Portfolio Growth through Acquisitions and Value Creation Well-positioned for growth Made 1st solar investment German Solar Portfolio 2023-2024 milestones Jan 2024 Secured concession extension Dec 2023 Dec 2022 Senoko WTE Plant Oct 2022 Crystalised value creation Sep 2022 Ixom and City Energy
Slide 6: Deepen Renewables Exposure with First Solar Portfolio Investment
Deepen Renewables Exposure with First Solar Portfolio Investment Attractive de-risked portfolio backed by 20-year lease contracts with German households ▪ Acquisition of a 45% stake in a German solar portfolio comprising > 60,000 bundled solar photovoltaic (PV) systems, including > 55,000 battery st
Slide 7: Business Updates
Business Updates Ixom
Slide 8: Financial Performance at a Glance
Financial Performance at a Glance Achieved Record EBITDA for City Energy, Ixom and Philippine Coastal Energy Transition Environmental Services Distribution & Storage ▪ Higher DI contributed by AGPC and wind ▪ Higher DI supported by full year ▪ Ixom’s EBITDA in AUD up by 5%; lower DI farm assets, and
Slide 9: Business Updates: Energy Transition
Business Updates: Energy Transition ▪ City Energy ̶ Expanded product offerings with the acquisition of TSH’s LPG business, the second largest LPG cylinder distributor in Singapore, allowing City Energy to grow into a new market ̶ Exclusive rights to extend EV charging services to ~20,000 carpark lot
Slide 10: Business Updates: Environmental Services
Business Updates: Environmental Services ▪ EMK ̶ Maintained high availability and full utilisation of incineration capacity ̶ Higher volume for landfill business: Secured new contracts from blue chip customers ̶ Seeking growth opportunities through accretive bolt-on acquisitions ▪ Singapore waste an
Slide 11: Business Updates: Distribution & Storage
Business Updates: Distribution & Storage ▪ Ixom ̶ Strong volume and pricing across coagulants, caustic and sodium hypochlorite in Australia ̶ Increased volume from the industrial and dairy segments of the New Zealand business ▪ Philippine Coastal ̶ Tank utilisation rate of almost 100% as at end-Dec
Slide 12: Voluntary Independent Portfolio Valuation
Voluntary Independent Portfolio Valuation Portfolio AUM of $8.1b with new acquisitions and value creation initiatives ▪ Improve transparency and better reflect asset values which are largely recognised at cost in statutory reports ▪ Higher valuation of existing portfolio: $7.4b vs $7.3b for FY 2022
Slide 13: Financial and Capital Management
Financial and Capital Management City Energy
Slide 14: Distributable Income
Distributable Income S$’000 2H 2023 2H 2022 +/(-) % FY 2023 FY 2022 +/(-) % Energy Transition 50,034 78,916 (36.6) 147,706 115,667 27.7 Record DPU for FY 2023 - City Energy 20,545 26,506 (22.5) 52,730 40,274 30.9 Distribution Per Unit (cents)8 - Aramco Gas Pipelines Company 18,200 26,533 (31.4) 48,8
Slide 15: Balance Sheet
Balance Sheet Building a strong balance sheet to support growth plans Undrawn committed credit facilities Balance Sheet (S$’m) 31 Dec 2023 31 Dec 2022 $478m Cash 482.6 535.7 Interest Coverage Ratio (MTN) Borrowings 2,717.0 2,907.2 14.7x Net debt 2,234.4 2,371.5 Weighted average interest rate Total a
Slide 16: Capital Management
Capital Management Well-diversified debt maturity profile with healthy capital management metrics ▪ Obtained $100m in corporate loan facilities in 4Q 2023 to support 2024 acquisitions ▪ Reviewing KMC’s capital structure to allow the plant to resume contributions to KIT ▪ Mitigating impact of currenc
Slide 17: Growth and Value Creation
Growth and Value Creation German Solar Portfolio
Slide 18: Market Outlook
Market Outlook Infrastructure: Driving Sustainable Development Resilient sector amid market turmoil.. … powered by the Energy Transition sector .. and transit towards the circular economy ▪ Investor appetite for infrastructure ▪ US$4.6 trillion in global energy transition ▪ Continued demand for wast
Slide 19: Continued Focus on Growth
Continued Focus on Growth Leveraging on the Sustainable Urbanisation thematics ▪ Actively pursue third party evergreen businesses Focus on developed markets in APAC and Europe; and yield-accretive investments opportunistic for the rest of the world Optimise portfolio through asset recycling, unlocki
Slide 20: Value Creation a Key Differentiation for KIT
Value Creation a Key Differentiation for KIT Driving growth of businesses through focused portfolio optimisation plans Improve asset performance Business optimisation Realise greater synergies Engineering DNA: Strengthen cash flow profile of existing portfolio ▪ Position City Energy as a ▪ Further s
Slide 21: Drawing on Keppel's Deep Engineering and Operating Capabilities
Drawing on Keppel’s Deep Engineering and Operating Capabilities Operator-oriented DNA: Strong emphasis on value-adding and active management Energy Infrastructure Environmental Infrastructure Global ▪ Developer of Singapore’s 1st independent power project, Keppel Merlimau Cogen (1.3GW) ▪ Keppel's In
Slide 22: Commitment to Sustainability
Commitment to Sustainability Borkum Riffgrund 2
Slide 23: Sustainability at the Core
Sustainability at the Core On track to achieve ESG targets ▪ Progressing on decarbonisation roadmap with reduction in carbon emissions intensity and increased exposure to renewables; continue to promote workplace diversity and develop human capital Carbon Emissions Intensity1 Volunteering Hours2 Boa
Slide 24: Thank You
Thank You www.kepinfratrust.com Connect with us on:
Slide 25: Additional Information
ICEPPEL INFRASTRUCTURE TRUST Additional Information
Slide 26: Special Distribution from Successful Value Creation
Special Distribution from Successful Value Creation Crystallised part of value created with $273m capital optimisation arising from EBITDA growth at Ixom and City Energy Driven by higher valuations on strong business and EBITDA growth FY 2023 FY 2022 Feb 2019 2021 Ixom Acquisition EBITDA New strateg
Slide 27: Energy Transition Portfolio Overview
Portfolio Overview as at 31 Dec 2023 Total Assets1 Description Customer Source of cash flows (S$’m) Sole producer and retailer of piped town gas; expanded Fixed margin per unit of gas sold, > 900,000 commercial and residential City Energy into LPG business, as well as with fuel and electricity costs
Slide 28: Environmental Services Portfolio Overview
Portfolio Overview as at 31 Dec 2023 Total Assets1 Description Customer Source of cash flows (S$’m) NEA, Singapore government agency - Waste-to-energy plant with 2,310 Senoko WTE concession until 2027 with option for Fixed payments for availability of tonnes/day waste incineration Plant up to 1-year
Slide 29: 2H 2023: Distributable Income
2H 2023: Distributable Income S$'000 Energy Environmental Distribution & Corporate1 Group Transition Services Storage Note: 1. Comprises Trust expenses and distribution Profit after tax 49,182 (12,328) (10,215) 32,397 59,036 paid/payable to perpetual securities holders, management fees and financing
Slide 30: 2H 2022: Distributable Income
2H 2022: Distributable Income S$'000 Energy Environmental Distribution & Corporate1 Group Transition Services Storage Note: 1. Comprises Trust expenses and distribution Profit/(loss) after tax 26,509 (7,549) (37,459) 11,327 (7,172) paid/payable to perpetual securities holders, management fees and fi
Slide 31: FY2023: Distributable Income
FY2023: Distributable Income S$'000z Energy Environmental Distribution & Corporate1 Group Transition Services Storage Note: 1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, Profit after tax 53,471 (36,201) 26,548 47,109 90,927 management fees and financing c
Slide 32: FY2022: Distributable Income
FY2022: Distributable Income S$'000 Energy Environmental Distribution & Corporate1 Group Transition Services Storage Note: 1. Comprises Trust expenses and distribution paid/payable to perpetual securities Profit after tax (4,065) (9,523) (1,783) 12,542 (2,829) holders, management fees and financing
Slide 33: FY2023: Businesses and Assets Results Summary
FY2023: Businesses and Assets Results Summary City Energy Keppel Merlimau Cogen S$'000 FY2023 FY2022 Change S$'000 FY2023 FY2022 Change % % Revenue 399,532 389,528 2.6 Revenue 130,539 132,226 (1.3) Other income 9,233 1,780 >100.0 Other income 3,687 66 >100.0 Other (losses)/gains - net (139) (216) (3
Slide 34: FY2023: Businesses and Assets Results Summary
FY2023: Businesses and Assets Results Summary Singapore waste and water assets Eco Management Korea S$'000 FY2023 FY2022 Change KRW'm FY2023 2M ended 31 Change % Dec 2022 % Revenue 103,754 103,249 0.5 Revenue 122,200 19,372 >100.0 Other income 1,099 739 48.7 Other income 1,541 575 >100.0 Other (loss
Slide 35: FY2023: Businesses and Assets Results Summary
FY2023: Businesses and Assets Results Summary Ixom A$'000 FY2023 FY2022 Change % Revenue 1,375,623 1,386,745 (0.8) Other income 2,698 192 >100.0 Other (losses)/gains - net 109 465 (76.6) Expenses Operating costs (1,001,962) (1,046,174) (4.2) Staff costs (172,017) (160,383) 7.3 Depreciation and amort
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