Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — SGX-Macquarie Singapore Access Virtual Corporate Days 2020
22 slides from Keppel Infrastructure Trust's conference presentation, Oct 2, 2020
Slide 1: Singapore Access Virtual Corporate Days
SINGAPORE ACCESS VIRTUAL CORPORATE DAYS 1-2 October 2020 Keppel Infrastructure Trust Matthew Pollard, CEO Eric Ng, Head of Finance STRICTLY CONFIDENTIAL
Slide 2: Outline
Outline 1 Overview 3 2 2Q & 1H 2020 Business and Operational Updates 9 3 Additional Information 19 2
Slide 3: Overview
Overview Ixom
Slide 4: Overview of KIT
Overview of KIT • The largest diversified Business Trust listed in Singapore with a portfolio of strategic businesses and assets that provide essential products and services • Assets under Management of $5.0b as at 30 June 2020 • Long-term sustainable cash flows supported by AAA Singapore Government
Slide 5: Portfolio of strategic businesses and assets
Overview of KIT Portfolio of strategic businesses and assets across a broad range of highly defensive industries that delivers long-term sustainable cash flows to Unitholders Distribution & Network Strategic businesses and assets • City Gas with potential for long-term All business and • Ixom growth
Slide 6: Geographical Presence
Geographical Presence Distribution & Network Energy Waste & Water 6
Slide 7: Well-Diversified Customer Base and Reputable Off-takers
Well-Diversified Customer Base and Reputable Off-takers Customers & Off-takers Highlights More than 860,000 residential, City Gas ✓ Sole producer and retailer of town gas in Singapore commercial and industrial customers ✓ Sole manufacturer and provider of liquefied chlorine in Australia, as well as
Slide 8: Portfolio Breakdown
Portfolio Breakdown By Businesses and Assets (%) By Geography (%) As at 30 June 2020 As at 30 June 2020 19.8 12.0 9.3 $5.0 43.3 $5.0 17.4 56.7 billion billion 15.6 25.9 City Gas Basslink Singapore Australia, New Zealand and other countries Ixom KMC Waste & Water Trust assets and non-controlling inte
Slide 9: 2Q & 1H 2020 Key Business and Operational Updates
2Q & 1H 2020 Key Business and Operational Updates City Gas
Slide 10: Key Highlights
Key Highlights All businesses and assets are classified as essential services No operational disruption throughout lockdowns; business continuity measures were implemented to ensure health & safety of staff Resilient Distributable Cash Flows $62.2m 2Q 2020 DCF of $62.2m, bringing 1H 2020 DCF to $113
Slide 11: 2Q 2020 Business Updates
2Q 2020 Business Updates City Gas • Customer base grew 1.2% YoY to 862,000 as at end-June 2020 • Achieved 100% availability • Town gas demand from Commercial & Industrial customers was lower in 2Q 2020 during the circuit breaker, partially offset by higher usage from residential customers • Higher D
Slide 12: 2Q 2020 Business Updates (cont'd)
2Q 2020 Business Updates (cont’d) • Contractual availability of 97.9%, due to unplanned maintenance that Energy was promptly rectified ▪ Keppel • Secured a $700 million sustainability-linked loan, one of the largest such Merlimau loans in Singapore and the first in the energy sector to-date Cogen (K
Slide 13: Resilient Distributable Cash Flows
Resilient Distributable Cash Flows 2Q 2020 2Q 2019 +/(-) 1H 2020 1H 2019 +/(-) S$’000 S$’000 % S$’000 S$’000 % Distribution & 40,230 21,889 83.8 68,437 44,950 52.3 Network City Gas 17,154 10,421 64.6 29,011 26,262 10.5 Ixom 23,076 10,156 >100.0 39,426 16,034 >100.0 DC One1 - 1,312 n.m. - 2,654 n.m.
Slide 14: Regular and Stable Distributions
Regular and Stable Distributions Stable Distribution (cents) 3.72 3.72 3.72 3.72 0.93 0.93 0.93 0.93 1.86 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 1Q 2Q 3Q 4Q Comparative Yields1 6.8%2 4.6% 4.3% 0.8% 0.4% KIT STI Index FTSE ST REIT
Slide 15: Balance Sheet
Balance Sheet Sustainable gearing supported by: As at 30 June 2020 (S$’m) Total ◼ Long term concession contracts expiring between 2024 and 2034 Cash 499 ◼ Creditworthy off-takers backed by government and Borrowings 2,169 government-linked corporations Net debt 1,670 ◼ City Gas’ and Ixom’s large and
Slide 16: Capital Management
Capital Management Overview: Debt Repayment Debt Breakdown by ◼ Hedged ~81% of total loans (excludes the sustainability-linked Profile Currency loan for KMC, which is in the process of being fully hedged) > 5 yr < 1 yr ◼ Stable interest rate of 4-5% 20.0% 30.9% − Singapore average: 1-4% − Australia
Slide 17: Three-pronged Growth Strategy
Three-pronged Growth Strategy Value Operational Focused Creation Excellence Acquisition • Generate sustainable cash • Achieve operational excellence • Seek leading businesses and flows from the Trust’s well- and asset optimisation to extract assets with the following diversified portfolio of further
Slide 18: Thank You
Thank You www.kepinfratrust.com Connect with us on: Keppel Merlimau Cogen Plant
Slide 19: Additional Information
Additional Information Tuas WTE Plant
Slide 20: Driving Sustainable Growth
Driving Sustainable Growth KIT’s strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distributions and capital growth over the long term Anchored By a growing portfolio of strategic businesses and assets across a broad range of highly defensive ind
Slide 21: Portfolio Overview
Portfolio Overview Description Customers and contract terms Primary source of cash flows City Gas Fixed margin per unit of gas sold, Distribution & Network Sole producer and retailer of piped town Over 860,000 commercial and residential with fuel and electricity costs passed Singapore gas customers
Slide 22: 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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