Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Shareholder Meeting (April 2022)
17 slides from Keppel Infrastructure Trust's shareholder meeting presentation, Apr 19, 2022
Slide 1: Extraordinary General Meeting: Proposed Base Fee and Performance Fee Supplement
Extraordinary General Meeting Proposed Base Fee and Performance Fee Supplement 19 Apr 2022
Slide 2: 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
Slide 3: Contents
Contents Growth since listing 4 Overview of Proposed Fee Amendments 5 Rationale 6 Implementation and Financial Impact 12 Building a well-diversified portfolio of Resolution 15 infrastructure businesses and assets that generate long-term growth in distributions and contribute to a sustainable future
Slide 4: Growth since listing
Growth since listing KIT’s portfolio has grown since listing from $760m as at Dec 2010 to approx. $4.5b as at 31 Dec 2021 Acquired 50% interests Invested in Aramco Gas Distributable Income in Philippine Coastal Pipelines Company 14.6% CAGR Storage & Pipeline Corporation Completed capacity Acquired 1
Slide 5: Overview of the Proposed Fee Amendments
Overview of the Proposed Fee Amendments Proposed change in existing management fee and performance fee structure to support KIT’s growth plans and align the Trustee-Manager’s interests with that of Unitholders Current Fee Structure Proposed Fee Structure Existing Management Fee Proposed Base Fee $2m
Slide 6: Rationale
Rationale
Slide 7: Rationale of the Proposed Fee Amendments
Rationale of the Proposed Fee Amendments To align fee structure with long-term value creation To closer align interests with that of Unitholders To deepen and expand talent pool To optimise KIT’s current portfolio To continue to drive portfolio growth through new investments 7
Slide 8: To align fee structure with long-term value creation
To align fee structure with long-term value creation Existing Fee Structure Proposed Fee Structure In place since 2010, where Better reflects the required level of resources to the Trustee-Manager had 7 effectively manage and operate KIT’s diverse employees managing 3 local portfolio: 22 employees1
Slide 9: To closer align interests with that of Unitholders
To closer align interests with that of Unitholders ▪ Proposed fee structure results in closer alignment of Trustee-Manager’s interests with that of Unitholders ̶ Proposed Base Fee pegged to cash generated by KIT ̶ Proposed Performance Fee pegged to DPU growth ▪ Proposed fee structure widely adopted
Slide 10: To deepen and expand talent pool
To deepen and expand talent pool ▪ To widen investible universe across high quality assets ▪ Focus on evergreen, yield accretive businesses Key Asset Classes in the infrastructure spectrum through: and assets that will benefit from secular growth ̶ Expanding global reach and talent pool in deal tren
Slide 11: To optimise KIT's current portfolio; drive growth through new investments
To optimise KIT’s current portfolio To continue to drive portfolio growth through new investments ▪ Continue to generate resilient cash flows ▪ Invested in Aramco Gas Pipelines Company in the ▪ Seek opportunities to grow existing Kingdom of Saudi Arabia1, which holds a 20-year lease businesses throu
Slide 12: Implementation and Financial Impact
Implementation and Financial Impact
Slide 13: Implementation of Proposed Fee Amendments
Implementation of Proposed Fee Amendments Proposed Base Fee only fully implemented in FY 2023 ▪ Proposed Performance Fee: Only payable with DPU growth; to take Proportion of Proposed Base Fee Proportion of Existing Management Fee effect from 3Q 2022 33% 33% ▪ Reflects the progressive growth of KIT's
Slide 14: Illustrative Financial Impact on Unitholders
Illustrative Financial Impact on Unitholders1 ▪ FY 2022 fees comparable to FY 2021: Illustrative fees of ~$11.7m for FY 2022 (after progressive implementation of Proposed Base Fee) vs fees of ~$11.8m for FY 2021 FY 2022 fees comparable Existing vs Proposed Base and Performance Fee Structure to FY 20
Slide 15: Resolution
Resolution
Slide 16: Resolution
Resolution To approve the Proposed Base Fee and Performance Fee Supplement Supports growth Better aligned with Better reflects Commonly Fee quanta within aspirations Unitholders’ resources required to adopted by market range charged by interests manage KIT’s diverse newly-listed REITs selected Busin
Slide 17: Thank You
Thank You www.kepinfratrust.com Connect with us on:
Keppel Infrastructure Trust — Shareholder Meeting (April 2022) on 6ix