Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — 2Q 2017 Earnings Presentation
28 slides from Keppel Infrastructure Trust's earnings presentation, Jul 17, 2017
Slide 1: Second Quarter and Half Year 2017 Financial Results
Keppel Infrastructure Trust Second Quarter and Half Year 2017 Financial Results 17 July 2017
Slide 2: Important Notice
Not for distribution in the United States Important Notice 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
Slide 3: Key Highlights for 2Q 2017
Key Highlights for 2Q 2017 Distribution per Unit Distribution Yield 0.93 cents ^ ^ 6.6% Steady DPU of 0.93 cents ^ for 2Q 2017 As at 30 June 2017 bringing total DPU to 1.86 cents for 1H 2017 Distributable Cash Flows Net Asset Value S$38.7 million 30.7 cents Stable distributable cash flows of As at 3
Slide 4: Business Updates
Business Updates • Customer base grew by 4.2% from 766,000 as of 2Q 2016 to 798,000 as of 2Q 2017 City Gas • Achieved 100% plant availability for 2Q 2017 • Consist of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants in Singapore Concessions • Fulfilled all contractual obli
Slide 5: 2Q 2017 Distributable Cash Flows
2Q 2017 Distributable Cash Flows Delivered distributable cash flows of S$38.7 million in 2Q 2017 2Q 2017 2Q 2016 S$’000 S$’000 Remarks City Gas 11,590 12,062 • Lower mainly due to time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 17,790 17,354 • All plants fulfilled c
Slide 6: 1H 2017 Distributable Cash Flows
1H 2017 Distributable Cash Flows Delivered distributable cash flows of S$73.0 million in 1H 2017 1H 2017 1H 2016 S$’000 S$’000 Remarks City Gas 20,526 26,195 • Lower mainly due to time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 35,158 34,779 • All plants fulfilled c
Slide 7: Diversified Portfolio of Core Infrastructure Assets
Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets 1H 2017 Adjusted EBITDA (1) Total Assets as at 30 Jun 2017 Corporate KMC(2) 2% 22% (2) K
Slide 8: Regular and Stable Returns
Regular and Stable Returns DPU (S cents) S cents/unit 2.5 2Q FY17 DPU: 0.93 Singapore cents Book closure date: 25 July 2017 1.98 2 Distribution Payment date: 18 August 2017 1.5 1.05 1 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.78 0.5 0 (1) (2) (1) Lower DPU in 1Q FY15 as KMC (which was acquired on 30
Slide 9: Regular and Stable Returns
Regular and Stable Returns Distribution Yield (1) Infrastructure Trusts Singapore Industrial REITs Average: 8.2% Average: 7.0% 11.4% 10.0% 10.0% 8.3% 8.4% 7.9% 7.5% 7.6% (2) 6.6% 6.8% 6.4% 6.2% 6.2% 6.1% 5.2% 4.3% (1) Source: Bloomberg’s dividend yield data as at 30 June 2017 (2) Based on market clo
Slide 10: Strong Balance Sheet
Strong Balance Sheet As at 30 June 2017 Excluding Sustainable gearing backed by S$’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 Total
Slide 11: 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 12: Well-Positioned to Deliver Long-term Value and Growth
Well-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 or large and stable customer base 4 Generate long term, regular and predictable cas
Slide 13: Appendix I: Additional Information
Appendix I: Additional Information 12
Slide 14: 2Q 2017 Results: City Gas
2Q 2017 Results: City Gas 2Q FY17 2Q FY16 Change 1H FY17 1H FY16 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 80,026 70,450 13.6 157,495 140,992 11.7 Other income 399 404 (1.2) 699 790 (11.5) Other (losses)/gains - net (161) 392 N/M (822) 597 N/M Expenses Fuel and electricity costs (28,511) (19,42
Slide 15: 2Q 2017 Results: Concessions
2Q 2017 Results: Concessions 2Q FY17 2Q FY16 Change 1H FY17 1H FY16 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 23,274 28,056 (17.0) 46,478 55,970 (17.0) Other income 114 181 (37.0) 219 367 (40.3) Expenses Fuel and electricity costs (2,306) (2,647) (12.9) (4,572) (5,207) (12.2) Depreciation and a
Slide 16: 2Q 2017 Results: Basslink
2Q 2017 Results: Basslink 2Q FY17 2Q FY16 Change 1H FY17 1H FY16 Change A$'000 A$'000 % A$'000 A$'000 % Revenue 21,722 5,168 >100.0 41,499 6,325 >100.0 Other income 235 15,420 (98.5) 432 15,614 (97.2) Other losses - net (1,377) (1,363) 1.0 (2,729) (2,691) 1.4 Expenses Fuel and electricity costs (72)
Slide 17: 2Q 2017 Results: KMC
2Q 2017 Results: KMC 2Q FY17 2Q FY16 Change 1H FY17 1H FY16 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 32,537 32,561 (0.1) 64,960 63,156 2.9 Other income 117 700 (83.3) 521 2,366 (78.0) Other losses - net 4 (248) N/M 3 (492) N/M Expenses Depreciation and amortisation (18,902) (18,921) (0.1) (37,
Slide 18: 2Q 2017: Distributable Cash Flows
2Q 2017: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 4,703 7 1,492 (19,197) 19,932 6,937 Add/(less) Reduction in concessions/lease receivables - 13,350 - - - 13,350 Non-cash finance cost 97 7 1,263 158 26 1,551 Other non-cash items 89 941 86
Slide 19: 2Q 2016: Distributable Cash Flows
2Q 2016: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 3,868 1,109 2,397 (19,066) 19,331 7,639 Add/(less) Reduction in concessions/lease receivables - 12,672 - - - 12,672 Non-cash finance cost 96 7 1,253 150 32 1,538 Other non-cash items (468)
Slide 20: 1H 2017: Distributable Cash Flows
1H 2017: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 6,187 121 1,137 (37,985) 35,569 5,029 Add/(less) Reduction in concessions/lease receivables - 26,570 - - - 26,570 Non-cash finance cost 193 13 2,547 316 2,769 5,838 Other non-cash items 74
Slide 21: 1H 2016: Distributable Cash Flows
1H 2016: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 8,417 2,356 (13,093) (39,311) 39,753 (1,878) Add/(less) Reduction in concessions/lease receivables - 25,195 - - - 25,195 Non-cash finance cost 191 16 2,476 310 586 3,579 Other non-cash ite
Slide 22: 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 21
Slide 23: Appendix II: Overview of KIT
Appendix II: Overview of KIT 22
Slide 24: 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 25: Portfolio Overview
Portfolio Overview 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, Singapore 2034 Principally fixed availability waste inc
Slide 26: KIT Investment Criteria
KIT Investment Criteria KIT Investment Criteria Portfolio of highly strategic assets Telecoms KIT aims to provide Unitholders Utilities Infra Power Infra Infra with long-term, regular and predictable distributions by Singapore DataCentre City Gas KMC Basslink Concessions One pursuing investments t
Slide 27: Three-pronged Growth Strategy
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 ma
Slide 28: Thank You
Thank You www.kepinfratrust.com 27
Keppel Infrastructure Trust — 2Q 2017 Earnings Presentation on 6ix