Keppel Ltd. · SGX:BN4
Keppel — Shareholder Meeting (April 2021)
20 slides from Keppel's shareholder meeting presentation, Apr 23, 2021
Slide 1: Annual General Meeting
Annual General Meeting Presentation by Mr Loh Chin Hua, CEO 23 April 2021
Slide 2: 2020 Financial Performance
2020 Financial Performance Net Profit/(Loss) Net profit/(loss) 707 S$(506)m S$446m 214 280 S$m 136 Mainly due to impairments Excl. impairments 13 in the O&M business 483 438 0 Revenue Recurring income (101) (25) S$6.6b S$220m (1,181) (56) Total cash dividend Free cash inflow per share (506) 10 cts S
Slide 3: Energy & Environment
Net Profit/(Loss) Energy & Environment 129 10 144 • The segment’s net loss for FY 2020 was mainly due 0 to losses in the O&M business (240) (101) • Keppel O&M’s net loss was S$1,194m for FY 2020, S$m due mainly to significant impairments recorded in (1,194) 2Q 2020, reduced top line from COVID-19 re
Slide 4: Energy & Environment
Energy & Environment Net Orderbook i • Pivot to renewables and cleaner fossil fuels 4.4 has borne fruit 1.0 3.3 0.2 • Secured new order wins of about S$1.0b in FY 2020, 0.2 0.1 0.2 with offshore renewables and LNG solutions making 0.2 up 65% of new orders 2.4 S$b 1.7 • Net orderbook stood at S$3.3b
Slide 5: Energy & Environment
Energy & Environment • Keppel Infrastructure continued to grow as a steady contributor to the Group • Net profiti improved to S$144m for FY 2020, from S$129m for FY 2019 • Keppel Infrastructure secured S$2.1bii worth of WTE and district cooling contracts across Singapore, India and Thailand • Keppel
Slide 6: Urban Development
Urban Development Net Profit • The segment recorded net profit of S$438m for FY 2020 483 438 • Keppel Land’s contributioni of S$406m for FY 2020 38 was 10% lower yoy mainly due to absence of 67 tax write-backs • Keppel Land announced asset divestments of ~S$1.3b in 2020 452 406 S$m • Acquired a stak
Slide 7: Urban Development
Urban Development Home Sales i Sales value: • Keppel Land’s home sales in FY 2020 were lower mainly due to S$3.2b Sales value: S$2.5b lower home sales in China and Vietnam 5,150 • In 1Q 2021, home sales tripled yoy, mainly due to stronger 250 performance across China, Vietnam and Singapore 300 250 •
Slide 8: Connectivity
Net Profit Connectivity 136 • The segment recorded a net profit of S$13m for FY 2020 78 • Data Centres is a growth business for the Group • In FY 2020, S$74m in contributions from the 13 data centre REIT and private fund was S$m 73 segmentalised to Asset Management 65 • Keppel Data Centres added two
Slide 9: Connectivity
Connectivity • M1’s contributioni of S$65m was 11% lower yoy due to COVID-19 impact on roaming and prepaid revenue, while EBITDA was relatively resilient at S$264m for FY 2020 • As at end-2020, M1 had the second largest postpaid customer base and postpaid revenue in Singapore • M1’s transformation p
Slide 10: Asset Management
Asset Management Net Profit • The segment’s net profit grew 31% yoy to S$280m for FY 2020 280 2 • Keppel Capital’s contributioni grew 6% yoy to S$85m for FY 2020 mainly due to gains from divestments 214 • Asset management feesii were S$165m for 64 193 FY 2020, vs S$149m for FY 2019 • REITs & Trust’s
Slide 11: Asset Management
Asset Management AUM as at End-2020 • Keppel Capital grew its AUM by 12% to reach S$37bi as at end-2020 Alternative assetsii 16% • Despite COVID-19 related restrictions, Keppel Capital-managed funds raised total equity of ~S$4.5b in 2020 • Launched and achieved first close for several Infrastructure
Slide 12: Key Questions from Shareholders
Key Questions from Shareholders 1. Keppel’s Vision 2030 2. Transformation of Keppel O&M 3. Update on KrisEnergy 4. Sustainability 5. Directors’ fees 6. Dividends 12
Slide 13: Can you share more about Keppel's Vision 2030?
Can you share more about Keppel’s Vision 2030? • From a conglomerate of largely unrelated parts, we are working towards becoming one integrated business, providing solutions for sustainable urbanisation, with an asset management arm to tap third party funds for growth and provide a platform for capi
Slide 14: Can you share more about Keppel's Vision 2030? (Continued)
Can you share more about Keppel’s Vision 2030? (Continued) • Established Transformation Office, with a comprehensive agenda covering six workstreams: (1) growth initiatives across four business segments (2) asset monetisation & portfolio optimisation (3) cost & cash management (4) sustainability (5)
Slide 15: Can you share your plans for Keppel O&M? Will you divest the business?
Can you share your plans for Keppel O&M? Will you divest the business? • Transforming Keppel O&M to be more relevant and competitive amidst the global energy transition. • Exit offshore rigbuilding business after completing its existing uncompleted rigs; progressively exit low value-adding repairs a
Slide 16: Can you provide an update on KrisEnergy?
Can you provide an update on KrisEnergy? • Keppel has supported KrisEnergy to safeguard our investment in the company, including during the consensual restructuring exercise which commenced in 2019. In each step that we took, we have exercised caution to manage Keppel’s risks. • KrisEnergy recently
Slide 17: What is Keppel doing in the area of sustainability?
What is Keppel doing in the area of sustainability? • Placed sustainability at the core of our strategy. • Introduced a shadow carbon price in the evaluation of all major investments; set measurable targets to reduce carbon emissions, water and waste intensity, and increase portfolio of renewable en
Slide 18: Why is there an increase in proposed directors' fees for FY 2021?
Why is there an increase in proposed directors’ fees for FY 2021? • The proposed directors’ fees of up to S$2,491,000 for FY 2021 is close to the sum of up to S$2,480,000 approved by shareholders for FY 2020. • Directors’ fees eventually amounted to S$2,028,071 for FY 2020 due to the following volun
Slide 19: What are Keppel's plans for dividends moving forward?
What are Keppel’s plans for dividends moving forward? • We recognise that dividends are important to our shareholders. • Keppel does not have an explicit dividend policy but has been paying out 40–50% of annual net profit as dividends in most years. • Funds unlocked from the monetisation of assets w
Slide 20: Thank You
Thank You 20