Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (May 2024)
41 slides from Keppel Infrastructure Trust's investor presentation, May 2024
Slide 1: Investor Presentation
Investor Presentation May 2024
Slide 2: Important Notice
Important Notice NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, EUROPEAN ECONOMIC AREA, CANADA, JAPAN, MALAYSIA, THAILAND OR AUSTRALIA The information contained in this presentation is for information purposes only and does not constitute or form part of, a
Slide 3: Outline
Outline ▪ Overview 4 ▪ Proposed Acquisition of Ventura 11 ▪ KMC CTA Extension and Capital Restructuring 22 ▪ Growth and Value Creation 25 ▪ 1Q 2024 Operational Updates 30 Constituent of: Awards and Accreditations1: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 1. Keppel Infrastructure
Slide 4: Overview
Overview European Onshore Wind Platform
Slide 5: Largest SGX-listed Infrastructure Business Trust
Largest SGX-listed Infrastructure Business Trust1 Providing exposure to the resilient and growing global infrastructure sector S$8.1b AUM Essential businesses >10 mature economies Portfolio of scale providing global and assets Focused on investment grade jurisdictions with well-developed regulatory
Slide 6: Building the Infrastructural Foundation for a Sustainable Future
Building the Infrastructural Foundation for a Sustainable Future Supports energy transition, safeguards the environment and drives economic growth
Slide 7: FY 2023: Record Year
FY 2023: Record Year Driven by strong portfolio performance from growth and value creation Record EBITDA Record DPU (cents) $463.7m1 6.193 Up 15.3%y-o-y 3.72 3.72 3.82 3.78 Record DI2 $316.8m FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Up 42% y-o-y Delivering DPU-accretion4 Focus on growth and value cre
Slide 8: 2023-2024 milestones
Driving Portfolio Growth through Acquisitions and Value Creation Well-positioned for growth Expand into transportation infrastructure 2023-2024 milestones Acquisition of Ventura Made 1st solar investment German Solar Portfolio Feb 2024 Jan 2024 Concession and CTA extensions Dec 2023 Dec 2022 Senoko
Slide 9: 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 10: 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 11: Proposed Acquisition of Ventura
Proposed Acquisition of Ventura Ventura
Slide 12: Ventura: A Leading Bus Operator and Essential Infrastructure
Ventura: A Leading Bus Operator and Essential Infrastructure and Public Service Essential service that supports Melbourne’s population growth ▪ KIT to acquire approx. 98.6%1 interest in Ventura Motors Pty Ltd (Ventura), the largest bus operator in Victoria ▪ Accretive acquisition: FY2023 DPU to incr
Slide 13: Ventura: A Century of Service History
Ventura: A Century of Service History Victoria’s largest bus operator, providing essential transport services in Melbourne 100 years ~900 bus fleet ~37% A$290m3 Operations (since 1924) including 27 ZEBs1 Market share2 FY2023 revenue >42m p.a. 12 depots ~100% A$84m3 Passengers transported Serving ~53
Slide 14: Defensive cash flows with cost indexation and capital reimbursement
Defensive cash flows with cost indexation and capital reimbursement > 80% of revenues derived from long-term inflation-protected government contracts with no farebox risk Government Private Mass Transit Public Schools Private Charter Private Schools High frequency services Bus services contracted to
Slide 15: Rationale for the Acquisition
Rationale for the Acquisition 1 2 3 4 5 6 Largest bus operator in Defensive cash Accretive Electrification Attractive Platform of Victoria and a flows with cost acquisition that thematic market with scale to capture core pillar of indexation and strengthens supporting favourable growth Melbourne’s c
Slide 16: Largest Bus Operator in Victoria with best-in-class performance
1. Largest Bus Operator in Victoria with best-in-class performance Core pillar of Melbourne’s transportation landscape ▪ Largest share of commuter bus services market in Victoria ▪ Fast-growing private bus charterer in Victoria, serving numerous schools and supporting tourism and general charter ▪ C
Slide 17: Attractive Market with Favourable Tailwinds
2. Attractive Market with Favourable Tailwinds Buses: An essential transport link between Melbourne’s fastest growing regions Melbourne Key Growth Drivers A Residential development Continuing growth in mass-transit bus service kilometres is expected to be driven by residential developments in outer
Slide 18: Defensive Cash Flows with Cost Indexation and Capital Reimbursement
3. Defensive Cash Flows with Cost Indexation and Capital Reimbursement Majority of revenues derived from long-term, inflation-protected government contracts ▪ Fixed payments; inflation-protected > 80% of revenues − No farebox and patronage risk from MBSCs1 − Stable revenue based on service delivery
Slide 19: Platform of Scale to Capture Growth Opportunities
4. Platform of Scale to Capture Growth Opportunities Accelerate growth within existing business and adjacent verticals Capture upsides within key regions Leveraging technology for vertical and horizontal growth 1 Increase service kilometres 3 Grow new revenue streams Differentiating on technology 4
Slide 20: Accretive Acquisition that Strengthens Portfolio Resiliency
5. Accretive Acquisition that Strengthens Portfolio Resiliency Pro forma DPU to increase by 3.4%2 Funds from Operations (“FFO”)2 Enlarged Portfolio: AUM to grow by 7% to S$8.7b1 post-acquisition 6.1% From S$287.9m3,4 in FY 2023 to S$305.6m6 By Business and Assets Assets under Management (“AUM”) By G
Slide 21: Electrification Thematic Supporting KIT's ESG Targets
6. Electrification Thematic Supporting KIT's ESG Targets Ventura is the first mover for energy transition in Victoria’s public transportation sector KIT’s carbon emissions intensity Carbon emissions (‘000tCO2) / Distributable Income (S$m) Owns and operates Victoria’s first fully electric bus depot 9
Slide 22: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Keppel Merlimau Cogen Plant
Slide 23: Overview: Keppel Merlimau Cogen Plant
Overview Keppel Merlimau Cogen Plant ▪ Located on Jurong Island, and connected to Singapore’s electricity transmission network, the KMC plant is well positioned to support the surrounding industries with their electricity, steam supply and demineralised water requirements ▪ Under the terms of the CT
Slide 24: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Allow KMC to resume Distributable Income contributions to KIT Extension of CTA and OMSA by 10 years Resume Distributable Income ✓ KMC continues to receive Capacity Fees of up to S$108m p.a. from contributions to KIT 2030 to 20401 ✓ Extension of OMSA ensure
Slide 25: Growth and Value Creation
Growth and Value Creation German Solar Portfolio
Slide 26: 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 27: Continued Focus on Growth
Continued Focus on Growth Leveraging on the Sustainable Infrastructure theme ▪ 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, unlocking
Slide 28: Value Creation a Key Differentiation for KIT
Value Creation a Key Differentiation for KIT Driving growth of businesses through focused portfolio optimisation plans
Slide 29: 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 30: 1Q 2024 Operational Updates
ICEPPEL INFRASTRUCTURE TRUST 1Q 2024 Operational Updates
Slide 31: 1Q 2024 Highlights
1Q 2024 Highlights Contributions from new acquisitions and KMC; maintain strong operational performance Defensive cash flows supported by portfolio of critical assets and businesses Adjusted EBITDA1 ▪ New contributions from German Solar Portfolio (Ph 1 & 2) $130.7m ▪ Resumed contributions from KMC w
Slide 32: Business Updates: Energy Transition
Business Updates: Energy Transition Supports the transition to a low-carbon economy and furthers KIT’s decarbonisation roadmap City Energy: Building new growth engines Continued performance of investments Renewables European German German Solar Portfolio Offshore Wind Portfolio Onshore Wind Platform
Slide 33: Business Updates: Environmental Services
Business Updates: Environmental Services Provides the essential services that protect human health and safeguard the environment EMK: Seeking growth opportunities Stable contributions from concession assets Singapore waste and water assets Senoko Waste- Keppel Seghers to-Energy (WTE) Tuas WTE Plant
Slide 34: Business Updates: Distribution & Storage
Business Updates: Distribution & Storage Supports the circular economy, driving economic growth Ixom: Sharpen business for growth Philippine Coastal: Capacity expansion to meet demand ▪ Higher chlorine volume and pricing in Australia ▪ High tank utilisation rate of 96% as at end-Mar 2024 ▪ Stronger
Slide 35: Distributable Income (DI)
Distributable Income (DI) Supported by new contributions from German Solar Portfolio and KMC S$’000 1Q 2024 1Q 2023 +/(-) % Remarks Energy Transition 49,740 48,723 2.1 ▪ Lower fuel cost over-recovery due to timing of fuel cost pass through; electricity costs are - City Energy 13,062 16,715 (21.9) pa
Slide 36: Balance Sheet
Balance Sheet Building a strong balance sheet to support growth plans Undrawn committed credit facilities Balance Sheet (S$’m) 31 Mar 2024 31 Dec 2023 $437m Cash 422.0 482.6 Interest Coverage Ratio Borrowings 2,741.5 2,717.0 13.8x Net debt 2,319.5 2,234.4 Weighted average interest rate Total assets
Slide 37: Capital Management
Capital Management Well-diversified debt maturity profile with healthy capital management metrics ▪ Obtained S$50m revolving credit facility in 1Q 2024 to support growth ▪ Mitigating impact of currency fluctuations: 66.5% foreign currency distributions hedged as at 31 Mar 2024 ▪ Proposed KMC capital
Slide 38: Sustainability at the Core
Sustainability at the Core On track to achieve ESG targets ▪ Progressing on decarbonisation roadmap with reduction in carbon emissions intensity and increased exposure to renewables; continue to promote workplace diversity and develop human capital Carbon Emissions Intensity1 Volunteering Hours2 Boa
Slide 39: Energy Transition Portfolio Overview
Portfolio Overview as at 31 Mar 2024 Total Assets1 Description Customer Source of cash flows (S$’m) Sole producer and retailer of piped town gas in Singapore; Fixed margin per unit of gas sold, > 900,000 commercial and residential City Energy expanded into LPG business, with fuel and electricity cos
Slide 40: Environmental Services Portfolio Overview
Portfolio Overview as at 31 Mar 2024 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 tonnes/day waste incineration Plant up to 1-year ex
Slide 41: Thank You
Thank You www.kepinfratrust.com Connect with us on: Borkum Riffgrund 2
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