Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — 9M FY2016 Earnings Presentation
28 slides from Keppel Infrastructure Trust's earnings presentation, Oct 17, 2016
Slide 1: 3Q FY16 and 9M FY16 Financial Results
Keppel Infrastructure Trust 3Q FY16 and 9M FY16 Financial Results 17 October 2016
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 3Q 2016
Key Highlights for 3Q 2016 Distribution per Unit Distributable Cash Flows 0.93 cents ^ ^ S$38.9 million Steady DPU of 0.93 cents ^ for 3Q 2016 Stable distributable cash flows of and 2.79 cents for 9M 2016 S$38.9 million for 3Q 2016 Total distribution of S$107.6 million for 9M 2016 and S$117.5 millio
Slide 4: Business Updates
Business Updates City Gas •Customer base grew by about 3.5% from 3Q 2015 to about 775,000 as at the end of 3Q 2016 •Continued to achieve 100% plant availability •Consist of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants in Singapore Concessions •All 6 boilers upgrade at
Slide 5: 3Q 2016 Distributable Cash Flows
3Q 2016 Distributable Cash Flows Delivered stable distributable cash flows of S$38.9 million in 3Q 2016 3Q FY16 3Q FY15 S$’000 S$’000 Remarks City Gas 10,090 16,384 • Lower due to the time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 18,221 17,584 • Higher due to Seno
Slide 6: 9M 2016 Distributable Cash Flows
9M 2016 Distributable Cash Flows Distributable cash flows for 9M 2016 was S$117.5 million 9M FY16 9M FY15 S$’000 S$’000 Remarks City Gas 36,284 34,745 • Lower operating expenses incurred Concessions 52,422 41,495 • Higher due to full 9 months contribution from the Crystal Assets* in 2016 and Senoko
Slide 7: Diversified Portfolio of Core Infrastructure Assets
Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets 9M FY16 EBITDA (1) Total Assets as at 30 Sep 2016 (2) Corporate KMC 7% 28% (2) KMC 28% C
Slide 8: Regular and Stable Returns
Regular and Stable Returns DPU (S cents) S cents/unit 2.5 3Q FY16: 0.93 Singapore cents 1.98 Book closure date: 25 October 2016 2 Distribution Payment date: 18 November 2016 1.5 1.05 1 0.93 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 1QFY14 2QFY14 3QFY14 4QFY14 Pre Combination Post 1QFY15(1)
Slide 9: Regular and Stable Returns: Attractive Yield
Regular and Stable Returns Attractive Yield (%) Keppel Infrastructure Keppel Infrastructure Trust Trust 7.4 SG Govt 10-Year Bond 1.8 SG Govt 15-Year Bond 2.0 SG Govt 20-Year Bond 2.1 S&P Asia Infra Index 2.7 FTSE ST Utilities Index 3.9 Dow Jones/Asia Pacific Utilities Index 2.8 FTSE Global Core Infr
Slide 10: Strong Balance Sheet
Strong Balance Sheet As at 30 September 2016 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 259 208 between 2024 and 2046 Borrowings 1,753 1,040 Creditworthy customers and City Gas’ large and stable Net debt 1,494 832 customer base Recurring and stable
Slide 11: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~85% of total loans Debt Repayment Profile • 100% non-recourse loans > 5 yrs < 1 yr 1.5% 2.1% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Healthy weighted average term to expiry of ~3.
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: 3Q 2016 Results: City Gas
3Q 2016 Results: City Gas 3Q FY16 3Q FY15 Change 9M FY16 9M FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 72,054 80,526 (10.5) 213,046 241,469 (11.8) Other income 430 289 48.8 1,220 937 30.2 Other (losses)/gains - net (387) - N/M 209 (109) N/M Expenses Fuel and electricity costs (22,411) (24,2
Slide 15: 3Q 2016 Results: Concessions
3Q 2016 Results: Concessions 3Q FY16 3Q FY15 Change 9M FY16 9M FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 32,637 34,233 (4.7) 88,607 74,459 19.0 Other income 104 167 (37.7) 473 481 (1.7) Expenses Fuel and electricity costs (2,592) (4,211) (38.4) (7,799) (11,167) (30.2) Depreciation and amor
Slide 16: 3Q 2016 Results: Basslink
3Q 2016 Results: Basslink 3Q FY16 3Q FY15 Change 9M FY16 9M FY15 Change A$'000 A$'000 % A$'000 A$'000 % Revenue 21,695 12,085 79.5 28,020 42,703 (34.4) Other income 3,445 221 >100 19,059 706 >100 Other (losses)/gains - net (1,381) 1,617 N/M (4,071) 2,642 N/M Expenses Fuel and electricity costs (72)
Slide 17: 3Q 2016 Results: KMC
3Q 2016 Results: KMC 3Q FY16 3Q FY15 Change 9M FY16 9M FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 32,468 32,563 (0.3) 95,625 65,128 46.8 Other income 637 804 (20.8) 3,003 1,176 >100 Other losses - net (2) - N/M (493) (37) >100 Expenses Depreciation and amortisation (18,911) (18,887) (0.1) (
Slide 18: 3Q 2016: Distributable Cash Flows
3Q 2016: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 1,583 1,196 4,671 (19,003) 19,261 7,708 Add/(less) Reduction in concessions/lease receivables - 12,989 - - - 12,989 Non-cash finance cost 97 8 1,267 161 1,617 3,150 Other non-cash items 46
Slide 19: 3Q 2015: Distributable Cash Flows
3Q 2015: Distributable Cash Flows S$'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 1,289 117 710 2,219 Other non-cash items 10
Slide 20: 9M 2016: Distributable Cash Flows
9M 2016: Distributable Cash Flows S$'000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 9,999 3,554 (8,422) (58,311) 59,010 5,830 Add/(less) Reduction in concessions/lease receivables - 38,184 - - - 38,184 Non-cash finance cost 288 22 3,743 466 1,649 6,168 Other non-cash item
Slide 21: 9M 2015: Distributable Cash Flows
9M 2015: Distributable Cash Flows S$'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 3,894 233 895 5,330 Other non-cash item
Slide 22: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 73.6 Oct 2024 Amortising Basslink 722.0 Nov 2019 Amortising* (A$708.5) KMC 700.0 Jun 2020 Bullet* KIT 91.5 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 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 Sponsorship 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 Upside
Slide 28: Thank You
Thank You www.kepinfratrust.com 27
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