Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — H2 2020 Earnings Presentation
27 slides from Keppel Infrastructure Trust's earnings presentation, Jan 27, 2021
Slide 1: 2H 2020 and FY 2020 Financial Results
2H 2020 and FY 2020 Financial Results 27 January 2021
Slide 2: Key Results Highlights
Key Results Highlights Grew FY 2020 Group EBITDA1 by 16.9% YoY and free cash flow to equity (FCFE) 2 by 19.6% YoY Achieved 2H 2020 Group EBITDA of $174.6m1, bringing FY 2020 EBITDA to $376.0m1, up 16.9% YoY. FCFE2 for 2H 2020 was $112.4m, bringing FCFE2 for FY 2020 to $225.7m, up 19.6% YoY. Achieved
Slide 3: Portfolio Breakdown
Portfolio Breakdown By Businesses and Assets (%) By Geography (%) As at 31 December 2020 As at 31 December 2020 20.7 12.2 Waste & Water 8.8 42.6 $4.9 billion1 17.3 $4.9 billion1 57.4 Distribution & Network Energy 15.7 25.3 City Gas Basslink Singapore Australia, New Zealand and other countries Ixom K
Slide 4: Operational Performance
Operational Performance Group EBITDA ($m) Operational Cash Flows ($m)2 17% 376.01 Waste & Water Energy 255.3 DC One City Gas 19% 321.7 Ixom 214.7 35% 23% 11% 16% 129.0 22% 18% 174.61 157.3 110.8 38% 30% 19% 18% 18% 14% 17% 19% 34% 29% 33% 29% 2H 2019 2H 2020 FY 2019 FY 2020 2H 2019 2H 2020 FY 2019 F
Slide 5: Business Updates - Distribution & Network
Business Updates - Distribution & Network Operational Cash Flows (OCF) ($m) City Gas City Gas • Customer base grew 0.8% YoY to 866,000 as at end-Dec 2020 • FY 2020 recorded slightly lower gas demand compared to FY 2019, due mainly to lower consumption 2% 46.0 47.0 from Commercial & Industrial (C&I)
Slide 6: Business Updates - Energy and Waste & Water
Business Updates - Energy and Waste & Water Operational Cash Flows (OCF) ($m) Energy 11% 46.1 Keppel Merlimau Cogen Plant 41.7 • Achieved 98% annual contracted availability • Contracted availability was slightly impacted by unplanned maintenance expenses 31% 24.5 18.7 in 2H 2020 • KMC has no tariff
Slide 7: Proposed Acquisition of Philippine Tank Storage International (Holdings) Inc.
Proposed Acquisition of Philippine Tank Storage International (Holdings) Inc. Philippine Coastal Storage & Pipeline Corporation
Slide 8: Key Highlights of Philippine Coastal Storage & Pipeline Corporation
Key Highlights of Philippine Coastal Storage & Pipeline Corporation 1 Storage Capacity 2019 EBITDA 2014-2019 EBITDA CAGR 6 million barrels ~S$40 million2 5.8% by early-2021 USD-denominated Products Stored Blue Chip Customers “take-or-pay” Contracts • Diesel • Gasoline Government Agency No exposure t
Slide 9: Key Merits
Key Merits Strategically aligned with Key attributes of PCSPC KIT’s investment focus PCSPC is the largest petroleum products 1 import storage facility in the Philippines Strengthening Long-term KIT’s stable cash 2 Strategically located in the Subic Bay Freeport ‘Distribution & flows with Zone and an
Slide 10: Finance and Capital Management
Finance and Capital Management Ixom
Slide 11: Focused on Growing FCFE
Focused on Growing FCFE Free Cash Flow to Equity (FCFE) Stable Distribution (cents)1 and Payout Ratio 3.72 3.72 3.72 3.72 3.72 FCFE Payout ($m) Ratio (%) 1.86 1.86 1.86 1.86 1.86 250 225.7 100 200 188.7 1.86 1.86 1.86 1.86 1.86 80 149.5 144.2 150 141.2 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 60 1H 2
Slide 12: Balance Sheet and Capital Management
Balance Sheet and Capital Management As at 31 Dec 2020 Debt Repayment Profile Debt Breakdown by Currency Balance Sheet ($m) > 5 yr < 1 yr Cash 581 20.1% 29.7 % Borrowings 2,161 A$53.5% S$46.5% Net debt 1,580 Total assets 4,930 1-5 yrs Total liabilities 3,435 50.2% Group EBITDA1 376 Amount Maturity/
Slide 13: Three-pronged Growth Strategy
Three-pronged Growth Strategy Value Operational Focused Creation Excellence Acquisition • Generate and grow cash flows • Achieve operational excellence • Seek leading businesses and from the Trust’s well-diversified and asset optimisation to extract assets with the following portfolio of businesses
Slide 14: Thank You
Thank You Constituent of: www.kepinfratrust.com MSCI Singapore FTSE ST Large Connect with us on: Small Cap Index & Mid-Cap Index City Gas
Slide 15: Additional Information
Additional Information Keppel Merlimau Cogen Plant
Slide 16: Driving Growth
Driving Growth Deliver recurring distributions and growth over the long term Anchored By acquiring strategic businesses and assets across a broad range of highly defensive industries Benchmarks High barriers to entry Provider of essential Creditworthy off- Defensive and Jurisdictions with with a dom
Slide 17: Free Cash Flow to Equity
Free Cash Flow to Equity 2H 2020 2H 2019 +/(-) FY 2020 FY 2019 +/(-) S$’000 S$’000 % S$’000 S$’000 % Distribution & 67,572 54,991 22.9 136,009 99,941 36.1 Network City Gas 18,036 19,720 (8.5) 47,047 45,982 2.3 Ixom 49,536 33,247 49.0 88,962 49,2811 80.5 DC One2 - 2,024 (100.0) - 4,678 (100.0) Energy
Slide 18: 2H 2020: Free Cash Flow to Equity
2H 2020: Free Cash Flow to Equity Waste & KIT and S$'000 City Gas Basslink Ixom KMC Group Water Holdco Profit/(loss) attributable to unitholders 6,071 (94,062) (1,126) (17,444) (227) 27,254 (79,534) Adjustments for non-cash items: Depreciation and amortisation 1,856 8,559 37,859 19,631 3,126 - 71,03
Slide 19: 2H 2019: Free Cash Flow to Equity
2H 2019: Free Cash Flow to Equity Waste & DC1, KIT and S$'000 City Gas Basslink Ixom KMC Group Water Holdco Profit/(loss) attributable to unitholders 6,354 (5,570) (14,227)1 (21,921) (398) 74,591 38,829 Adjustments for non-cash items: Depreciation and amortisation 2,008 8,257 53,647 19,705 3,053 - 8
Slide 20: FY 2020: Free Cash Flow to Equity
FY 2020: Free Cash Flow to Equity Waste & KIT and S$'000 City Gas Basslink Ixom KMC Group Water Holdco Profit/(loss) attributable to unitholders 19,806 (89,746) 14,217 (36,995) (1,135) 59,499 (34,354) Adjustments for non-cash items: Depreciation and amortisation 3,744 16,535 73,311 39,335 6,253 - 13
Slide 21: FY 2019: Free Cash Flow to Equity
FY 2019: Free Cash Flow to Equity Waste & DC1, KIT and S$'000 City Gas Basslink Ixom KMC Group Water Holdco Profit/(loss) attributable to unitholders 17,458 (8,989) (19,633)1 (41,424) (239) 91,405 38,578 Adjustments for non-cash items: Depreciation and amortisation 3,975 16,874 68,121 39,380 6,031 -
Slide 22: FY 2020: Businesses and Assets Results Summary
FY 2020: Businesses and Assets Results Summary City Gas Basslink Change Change S$'000 FY2020 FY2019 A$'000 FY2020 FY2019 % % Revenue 1 293,319 343,189 (14.5) Revenue 1 55,677 86,555 (36.0) Other income 1,954 2,323 (15.9) Other income 2 2,431 1,029 >100.0 Other (losses)/gains - net 458 (401) N/M Othe
Slide 23: FY 2020: Businesses and Assets Results Summary
FY 2020: Businesses and Assets Results Summary Ixom Change A$'000 FY2020 FY2019 % Revenue 1,036,245 963,657 7.5 Other income 2,408 2,056 17.1 Other (losses)/gains - net (9,997) (959) >100.0 Expenses Operating costs (759,805) (767,934) (1.1) Staff costs (129,635) (112,374) 15.4 Depreciation and amort
Slide 24: FY 2020: Businesses and Assets Results Summary
FY 2020: Businesses and Assets Results Summary KMC Waste & Water Change Change S$'000 FY2020 FY2019 S$'000 FY2020 FY2019 % % Revenue 1 128,761 125,816 2.3 Revenue 95,880 100,323 (4.4) Other income 187 161 16.2 Other income 1 2,069 1,144 80.8 Other (losses)/gains - net 148 101 46.3 Expenses Expenses
Slide 25: Portfolio Overview (1): Distribution & Network
Portfolio Overview (1) Description Customer and contract terms Primary source of cash flows Fixed margin per unit of gas City Gas Sole producer and retailer of Over 860,000 commercial and sold, Singapore piped town gas residential customers with fuel and electricity costs passed through to consumer
Slide 26: Portfolio Overview (2): Energy and Waste & Water
Portfolio Overview (2) Description Customer and contract terms Primary source of cash flows Keppel Capacity Tolling Agreement with Energy Merlimau 1,300MW combined cycle gas Keppel Electric until 2030 with option Fixed payments for meeting Cogen turbine power plant for 10-year extension (land lease
Slide 27: Important Notice
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 to purchase or subscribe for any units (“U
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