Slide 1: Fourth Quarter and Full Year 2016 Financial Results
Keppel Infrastructure Trust Fourth Quarter and Full Year 2016 Financial Results 23 January 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 FY 2016
Key Highlights for FY 2016 Distribution per Unit Distribution Yield 3.72 cents ^ ^ 7.8% Steady DPU of 0.93 cents ^ for 4Q 2016, As at 31 December 2016 bringing total DPU to 3.72 cents for FY 2016. Total distribution of S$143.5 million for FY 2016. Distributable Cash Flows Net Asset Value S$149.5 mil
Slide 4: Business Updates
Business Updates City Gas • Customer base grew by 4.6% from 748,800 as of end 2015 to 783,300 as of end 2016 • Achieved 100% plant availability for FY 2016 • Consist of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants in Singapore • Fulfilled all contractual obligations du
Slide 5: 4Q 2016 Distributable Cash Flows
4Q 2016 Distributable Cash Flows Delivered distributable cash flows of S$32.0 million in 4Q 2016 4Q FY16 4Q FY15(1) S$’000 S$’000 Remarks City Gas 4,274 16,384 • Lower due to time lag in the adjustment of gas tariffs to reflect actual fuel cost • Higher operating expenses incurred in 4Q 2016 Concess
Slide 6: FY 2016 Distributable Cash Flows
FY 2016 Distributable Cash Flows Distributable cash flows for FY 2016 was S$149.5 million FY2016 FY2015(1) S$’000 S$’000 Remarks City Gas 40,558 34,745 • Full 12 months contribution in FY 2016 versus 9 months in FY 2015 Concessions 70,170 41,495 • Full 12 months contribution in FY 2016 versus 9 mont
Slide 7: Diversified Portfolio of Core Infrastructure Assets
Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets FY2016 EBITDA (1) Total Assets as at 31 Dec 2016 (2) Corporate KMC 2% 29% (2) KMC 27% Co
Slide 8: Regular and Stable Returns
Regular and Stable Returns DPU (S cents) S cents/unit 4Q FY16 DPU: 0.93 Singapore cents 2.5 Book closure date: 1 February 2017 1.98 Distribution Payment date: 17 February 2017 2 1.5 FY 2016 DPU: 1.05 3.72 Singapore cents 1 0.93 0.93 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 (2) (1) (1) Lowe
Slide 9: Regular and Stable Returns: Attractive Yield
Regular and Stable Returns Attractive Yield (%) Keppel Infrastructure Keppel Infrastructure Trust Trust (1) 7.8 SG Govt 10-Year Bond 2.5 SG Govt 15-Year Bond 2.7 SG Govt 20-Year Bond 2.7 S&P Asia Infra Index 2.5 FTSE ST Utilities Index 3.8 Dow Jones/Asia Pacific Utilities Index 2.9 FTSE Global Core
Slide 10: Strong Balance Sheet
Strong Balance Sheet As at 31 December 2016 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 267 220 between 2024 and 2046 Borrowings 1,811 1,069 Creditworthy customers and City Gas’ large and stable Net debt 1,544 849 customer base Recurring and stable T
Slide 11: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~85% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non- > 5 yrs < 1 yr recourse 1.3% 1.5% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Hea
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: 4Q 2016 Results: City Gas
4Q 2016 Results: City Gas 4Q FY16 4Q FY15(2) Change FY2016 FY2015(3) Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 74,936 80,526 (6.9) 287,982 241,469 19.3 Other income 396 289 37.0 1,616 937 72.5 Other gains/(losses) - net 910 - >100% 1,119 (109) N/M Expenses Fuel and electricity costs (26,167) (2
Slide 15: 4Q 2016 Results: Concessions
4Q 2016 Results: Concessions 4Q FY16 4Q FY15(2) Change FY2016 FY2015(3) Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 24,696 34,233 (27.9) 113,303 74,459 52.2 Other income 108 167 (35.3) 581 481 20.8 Expenses Fuel and electricity costs (2,896) (4,211) (31.2) (10,695) (11,167) (4.2) Depreciation and
Slide 16: 4Q 2016 Results: Basslink
4Q 2016 Results: Basslink 4Q FY16 4Q FY15(1) Change FY2016 FY2015(2) Change A#039;000 A#039;000 % A#039;000 A#039;000 % Revenue 17,816 12,085 47.4 45,836 42,703 7.3 Other income 4,715 221 >100 23,774 706 >100 Other (losses)/gains - net (5,918) 1,617 N/M (9,989) 2,642 N/M Expenses Fuel and electricity costs (67)
Slide 17: 4Q 2016 Results: KMC
4Q 2016 Results: KMC 4Q FY16 4Q FY15(2) Change FY2016 FY2015(3) Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 33,089 32,563 1.6 128,714 65,128 97.6 Other income 435 804 (45.9) 3,062 1,176 >100 Other losses - net (1) - >100 (494) (37) >100 Expenses Depreciation and amortisation (18,909) (18,887) 0.1
Slide 18: 4Q 2016: Distributable Cash Flows
4Q 2016: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax (2,496) 1,012 (2,866) (15,594) 20,235 291 Add/(less) Reduction in concessions/lease receivables - 13,068 - - - 13,068 Non-cash finance cost 97 6 1,302 156 28 1,589 Other non-cash items (81
Slide 19: 4Q 2015: Distributable Cash Flows
4Q 2015: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 5,231 1,587 (6,590) (18,984) 18,683 (73) Add/(less) Reduction in concessions/lease receivables - 12,450 - - - 12,450 Non-cash finance cost 96 7 1,290 117 710 2,220 Other non-cash items 10
Slide 20: FY2016: Distributable Cash Flows
FY2016: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 7,503 4,566 (11,288) (73,905) 79,245 6,121 Add/(less) Reduction in concessions/lease receivables - 51,252 - - - 51,252 Non-cash finance cost 385 28 5,045 622 1,677 7,757 Other non-cash item
Slide 21: FY2015: Distributable Cash Flows
FY2015: Distributable Cash Flows S#039;000 City Gas Concession Basslink KMC Others Group Profit/(loss) after tax 4,477 4,032 (14,262) (37,491) 41,641 (1,603) Add/(less) Reduction in concessions/lease receivables - 30,070 - - - 30,070 Non-cash finance cost 285 23 3,895 233 895 5,331 Other non-cash items
Slide 22: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 71.0 Oct 2024 Amortising 750.2 Basslink (A$707.7) Nov 2019 Amortising* KMC 700.0 Jun 2020 Bullet* KIT 122.8 Feb 2019 Bullet* * To be refinanced upon maturity 21
Slide 23: Appendix II: Overview of KIT
Appendix II: Overview of KIT 22
Slide 24: KIT's Shareholding Structure
KIT’s Shareholding Structure • Keppel Corporation completed the consolidation of its asset management businesses under Keppel Capital in July 2016 • This includes a 100% interest in Keppel Infrastructure Fund Management (KIFM), the Trustee-Manager of KIT • KIFM will be able to leverage the scale and
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 governmen
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