Keppel Infrastructure Trust · SGX:A7RU

Keppel Infrastructure Trust — FY2017 Earnings Presentation

28 slides from Keppel Infrastructure Trust's earnings presentation, Jan 22, 2018

  1. Slide 1: 4Q FY2017 and Full Year 2017 Financial Results

    Keppel Infrastructure Trust 4Q FY2017 and Full Year 2017 Financial Results 22 January 2018

  2. 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

  3. Slide 3: Key Highlights for 4Q 2017

    Key Highlights for 4Q 2017 Distribution per Unit Distribution Yield (1) 0.93 cents ^ ^ 6.5% Steady DPU of 0.93 cents ^ for 4Q 2017 As at 31 December 2017 bringing total DPU to 3.72 cents for FY 2017 Distributable Cash Flows Net Asset Value S$30.8 million 29.9 cents Distributable cash flows of As at

  4. Slide 4: Business Updates

    Business Updates • Customer base grew by 3.8% from 783,300 as of 4Q 2016 to 813,300 as of 4Q 2017 City Gas • Achieved 800,000 customer milestone in 2017 • Achieved 100% availability in 4Q 2017 • Consist of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants in Singapore Conce

  5. Slide 5: 4Q 2017 Distributable Cash Flows

    4Q 2017 Distributable Cash Flows Delivered distributable cash flows of S$30.8 million in 4Q 2017 4Q FY17 4Q FY16 S$’000 S$’000 Remarks City Gas 6,254 4,274 • Due to time lag in the adjustment of gas tariffs to reflect actual fuel cost and lower operating expenses Concessions 15,529 17,746 • All plan

  6. Slide 6: FY 2017 Distributable Cash Flows

    FY 2017 Distributable Cash Flows Delivered distributable cash flows for FY 2017 was S$144.2 million FY2017 FY2016 S$’000 S$’000 Remarks City Gas 40,669 40,558 • Volume growth mitigated by time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 68,448 70,170 • All plants ful

  7. 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 FY2017 Adjusted EBITDA (1) Total Assets as at 31 Dec 2017 Corporate KMC (2) 2% 22% (2) K

  8. Slide 8: Regular and Stable Returns

    Regular and Stable Returns DPU (S cents) 4Q FY17 DPU: 0.93 Singapore cents Book closure date: 30 January 2018 Distribution Payment date: 23 February 2018 1 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.8 0.6 0.4 0.2 0 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 7

  9. Slide 9: Regular and Stable Returns

    Regular and Stable Returns Distribution Yield (1) Infrastructure Trusts Singapore Industrial REITs 11.0% Average: 6.9% Average: 7.3% 8.8% 8.5% 8.1% 7.9% 7.6% 7.2% 7.1% 6.9% (2) 6.5% 6.2% 5.9% (3) 5.5% 5.4% 5.0% 4.5% (1) Source: Bloomberg’s dividend yield data as at 31 December 2017 (2) Based on mark

  10. Slide 10: Strong Balance Sheet

    Strong Balance Sheet As at 31 December 2017 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 214 162 between 2024 and 2046 Borrowings 1,794 1,082 Creditworthy customers and City Gas’ large and stable Net debt 1,580 920 customer base Recurring and stable T

  11. Slide 11: Prudent Capital Management

    Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~91% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non- > 5 yrs < 1 yr recourse 0.9% 1.6% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Wei

  12. Slide 12: Well-Positioned to Deliver Long-term Value and Growth

    Well-Positioned to Deliver Long-term Value and Growth 1 One of Singapore’s largest infrastructure 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 ca

  13. Slide 13: Appendix I: Additional Information

    Appendix I: Additional Information 12

  14. Slide 14: 4Q 2017 Results: City Gas

    4Q 2017 Results: City Gas 4Q FY17 4Q FY16 Change FY2017 FY2016 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 81,194 74,936 8.4 320,372 287,982 11.2 Other income 453 396 14.4 1,600 1,616 (1.0) Other (losses)/gains - net (407) 910 N/M (1,302) 1,119 N/M Expenses Fuel and electricity costs (31,145) (26

  15. Slide 15: 4Q 2017 Results: Concessions

    4Q 2017 Results: Concessions 4Q FY17 4Q FY16 Change FY2017 FY2016 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 23,801 24,696 (3.6) 95,597 113,303 (15.6) Other income 140 108 29.6 492 581 (15.3) Expenses Fuel and electricity costs (2,590) (2,896) (10.6) (10,478) (10,695) (2.0) Depreciation and amor

  16. Slide 16: 4Q 2017 Results: Basslink

    4Q 2017 Results: Basslink 4Q FY17 4Q FY16 Change FY2017 FY2016 Change A#039;000 A#039;000 % A#039;000 A#039;000 % Revenue 19,613 17,816 10.1 80,478 45,836 75.6 Other income 239 4,715 (94.9) 895 23,774 (96.2) Other losses - net (2,999) (5,918) (49.3) (7,080) (9,989) (29.1) Expenses Fuel and electricity costs (70

  17. Slide 17: 4Q 2017 Results: KMC

    4Q 2017 Results: KMC 4Q FY17 4Q FY16 Change FY2017 FY2016 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 32,494 33,089 (1.8) 129,949 128,714 1.0 Other income 24 435 (94.5) 580 3,062 (81.1) Other losses - net 1 (1) N/M 5 (494) N/M Expenses Depreciation and amortisation (18,920) (18,909) 0.1 (75,598)

  18. Slide 18: 4Q 2017: Distributable Cash Flows

    4Q 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 475 145 (2,397) (16,020) 20,171 2,374 Add/(less) Reduction in concessions/lease receivables - 13,392 - - - 13,392 Non-cash finance cost 99 5 (1,416) 159 20 (1,133) Other non-cash items 368

  19. Slide 19: 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

  20. Slide 20: FY 2017: Distributable Cash Flows

    FY 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 13,318 510 (2,032) (73,671) 75,651 13,776 Add/(less) Reduction in concessions/lease receivables - 53,353 - - - 53,353 Non-cash finance cost 390 24 2,437 634 2,812 6,297 Other non-cash item

  21. Slide 21: FY 2016: Distributable Cash Flows

    FY 2016: 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 ite

  22. Slide 22: Loan Profile

    Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 60.6 Dec 2024 Amortising 717.4 Basslink Nov 2019 Amortising* (A$703.3m) KMC 700.0 Jun 2020 Bullet* KIT 145.6 Feb 2019 Bullet* * To be refinanced upon maturity 21

  23. Slide 23: Appendix II: Overview of KIT

    Appendix II: Overview of KIT 22

  24. Slide 24: Keppel Infrastructure Trust Structure

    Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise Institutional and asset management platform and track record in this industry Public Investors ~18%

  25. 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

  26. 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

  27. 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

  28. Slide 28: Thank You

    Thank You www.kepinfratrust.com 27

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