Slide 1: 1Q 2020 Financial Results
1Q 2020 Financial Results 29 April 2020
Slide 2: Scope of Briefing
Scope of Briefing • Address by CEO • Group Financial Highlights by CFO 2
Slide 3: Address by CEO
Address by CEO 3
Slide 4: COVID-19
COVID-19 • Plunge in global economic activity caused by COVID-19 • Keppel is not directly involved in sectors most severely impacted by COVID-19, but has inevitably also been affected by the pandemic • Many of our businesses in essential services and continue to operate • Responded quickly with prec
Slide 5: Financial Performance
Financial Performance Key highlights Net profit • Annualised ROE was 5.7% S$160m 203 160 • Free cash inflow of S$37m 1Q 2020 net profit down 21% from $203m 49 in 1Q 2020 vs outflow of for 1Q 2019 16 S$534m in 1Q 2019 S$m 174 • Net gearing was 0.88x as at 132 end-Mar 2020 vs 0.85x as at S$1,857m 0 6
Slide 6: Offshore & Marine
Offshore & Marine Net profit • 1Q 2020 net profit of S$3m 3 • Operating profit of S$28m was higher yoy 7 • O&M sector expected to remain challenging following the sharp fall S$m 6 10 in oil price 20 5 • Yards in Singapore and overseas operating at reduced capacity due 0 (9) to COVID-19; Philippine y
Slide 7: Offshore & Marine
Offshore & Marine Net orderbooki • Net orderbook stood at S$4.0b as at end-Mar 2020 4.4 • Continued to execute projects well - Delivered 2 newbuild projects 4.0 and an FPSO modification and upgrade project in 1Q 2020 0.7 0.7 • Continue to seek new opportunities, especially in gas and renewables 2.4
Slide 8: Property
Property Net profit • 1Q 2020 net profit of S$35m 132 • Lower yoy mainly due to absence of divestment gains and a tax 10 writeback in 1Q 2019 • Slowdown in construction and sales during COVID-19 32 • COVID-19 impact varies across key markets • Chinese market showing signs of recovery S$m 35 90 9 • O
Slide 9: Property
Property Home sales • Home sales • Sold 450 units in 1Q 2020, up 15% yoy, with total sales value 450 30 of ~S$320m 390 30 • Sale of 8,830 overseas units worth ~S$4.1b recognisable from 60 20 50 2Q 2020-2023 10 50 • Expanding presence in China with new residential site in Taicang, Jiangsu Units 30 33
Slide 10: Infrastructure
Infrastructure Net profit • 1Q 2020 net profit of S$174m • Gain of S$131m arising from reclassification of Keppel Infrastructure Trust as an investment 174 2 4 • Keppel Infrastructure doubled its core earnings • Reinforcing global position as waste management solutions provider • Keppel-led consorti
Slide 11: Investments
Investments Net profit/loss • 1Q 2020 net loss of S$52m • Lower yoy mainly due to absence of re-measurement gains of 49 previously held interest in M1 • Asset management S$m 83 • Recurring fee income remained resilient despite COVID-19 9 22 23 0 16 (6) • 1Q net earnings lower mainly due to mark-to-m
Slide 12: Investments
Investments • M1 • Resilient demand for mobile services amid COVID-19 • Added 20,000 postpaid customers in 1Q 2020 • But lower revenue from roaming and prepaid services, and slower handset and equipment sales due to COVID-19 • New opportunities from accelerated digital transformation of organisation
Slide 13: Vision 2030
Vision 2030 • One integrated business, collaborating to provide solutions for sustainable urbanisation • Tap 3rd party funds for growth & eco-system of REITs and business trusts to recycle capital • Streamline and focus business on four key areas: Energy & Urban Asset Connectivity Environment Develo
Slide 14: Group Financial Highlights by CFO
Group Financial Highlights by CFO 14
Slide 15: 1Q 2020 Financial Performance
1Q 2020 Financial Performance Key highlights S$m 1Q 2020 1Q 2019 % Change Revenue 1,857 1,531 21 Net Profit 21% from net profit of ↑ S$203m to S$160m EBITDA 374 389 (4) EPS 21% from 11.2cts to ↑ 8.8cts Operating Profit 273 322 (15) Profit Before Tax 247 283 (13) Net Profit 160 203 (21) EPS (cents) 8
Slide 16: 1Q 2020 Revenue by Segment
1Q 2020 Revenue by Segment S$m 1Q 2020 % 1Q 2019 % % Change Offshore & Marine 569 31 332 22 71 Property 302 16 357 23 (15) Infrastructure 697 37 699 46 - Investments 289 16 143 9 102 Total 1,857 100 1,531 100 21 16
Slide 17: 1Q 2020 Pre-tax Profit by Segment
1Q 2020 Pre-tax Profit by Segment S$m 1Q 2020 % 1Q 2019 % % Change Offshore & Marine 4 1 1 - 300 Property 93 38 181 64 (49) Infrastructure 182 74 20 7 >500 Investments (32) (13) 81 29 n.m.f. Total 247 100 283 100 (13) n.m.f. denotes No Meaningful Figure 17
Slide 18: 1Q 2020 Net Profit by Segment
1Q 2020 Net Profit by Segment S$m 1Q 2020 % 1Q 2019 % % Change Offshore & Marine 3 2 6 3 (50) Property 35 22 132 65 (73) Infrastructure 174 109 16 8 >500 Investments (52) (33) 49 24 n.m.f. Total 160 100 203 100 (21) n.m.f. denotes No Meaningful Figure 18
Slide 19: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,525 84.0 405 22.3 948 52.3 363 784 815 135 20.0 43.2 44.8 7.5 707 38.9 143 127 6.9 227 7.9 12.5 192 10.5 397 225 265 21.9 14.6 249 12.4 159 13.7 8.8 205 171 9.4 153 160 11.3 8.4 8.8 360 337 19.8 18.6 211 252 203 11.6 13.9 160 11.2 8.8 i i 1Q 2Q 3Q 4Q 1
Slide 20: Free Cash Flow
Free Cash Flow S$m 1Q 2020 1Q 2019 Operating profit 273 322 Depreciation & other non-cash items (12) (148) 261 174 Working capital changes (60) (676) Interest & tax paid (65) (89) Net cash from/(used in) operating activities 136 (591) Investments & capex (85) (26) Divestments & dividend income 50 46
Slide 21: Questions & Answers
Questions & Answers [TT Corporation 21 f
Slide 22: Additional Information
Additional Information [<I Corporation 2 ff
Slide 23: Revenue by Geography
Revenue by Geography • 40% of total revenue came from overseas customers Overseas Singapore Total 1Q 2020 Customers Customers (S$m) (%) (%) Offshore & Marine 569 73 27 Property 302 75 25 Infrastructure 697 14 86 Investments 289 - 100 Total 1,857 23
Slide 24: EBITDA by Segment
EBITDA by Segment S$m 1Q 2020 % 1Q 2019 % % Change Offshore & Marine 58 16 31 8 87 Property 98 26 181 46 (46) Infrastructure 180 48 26 7 >500 Investments 38 10 151 39 (75) Total 374 100 389 100 (4) 24
Slide 25: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 31 Mar 2020 31 Dec 2019 Shareholders’ Funds 11,185 11,211 Total Equity 11,623 11,646 Net Debt i 10,225 9,874 i Net Gearing Ratio 0.88x 0.85x ROE 5.7% 6.3% i Net debt and net gearing ratio included lease liabilities 25
Slide 26: Net Profit by Business Unit
Net Profit by Business Unit S$m 1Q 2020 1Q 2019 % Change Keppel Offshore & Marine 3 6 (50) Keppel Land i 39 129 (70) Keppel Infrastructure 168 19 >500 Keppel Telecommunications & Transportation ii 3 1 200 Keppel Capital 16 23 (30) M1 iii 22 9 144 Share of SSTEC’s results (6) (7) 14 KCL, Others & Eli
Slide 27: Offshore & Marine
Offshore & Marine 27
Slide 28: Financial Highlights – Offshore & Marine
Financial Highlights – Offshore & Marine S$m 1Q 2020 1Q 2019 % Change Revenue 569 332 71 EBITDA 58 31 87 Operating Profit 28 3 >500 Profit Before Tax 4 1 300 Net Profit 3 6 (50) 28
Slide 29: Operational Review
Operational Review • Secured S$34m of new orders in 1Q 2020: • Fabrication of leg component for an offshore wind turbine installation vessel • Project deliveries in 1Q 2020: • 1 jackup rig, 1 dual-fuel bunker tanker and an FPSO modification and upgrade project 29
Slide 30: Orderbook
Orderbook Contract Value S$m Gross Net Client For delivery in 2020 Borr Drilling/Clearwater/Fecon/Petrobras/Modec/ 8 JUs/3 FPSO Modules Fabrication & Integration*/1 Semi*/1 Production *Name Withheld/KrisEnergy/Stolt-Nielsen/Shturman Barge/2 LNG Carrier/2 LNG Bunkering Vessels/2 LNG Containerships Ko
Slide 31: Property
Property [<I Corporation 31
Slide 32: Financial Highlights - Property
Financial Highlights - Property S$m 1Q 2020 1Q 2019 % Change Revenue 302 357 (15) EBITDA 98 181 (46) Operating Profit 89 172 (48) Profit Before Tax 93 181 (49) Net Profit 35 132 (73) 32
Slide 33: Sales Achieved - Overseas
Sales Achieved - Overseas Sales Value in Key Projects Location Units Sold in 1Q 2020 Latest Avg. Selling Price 1Q 2020 China (RMB’m) (RMB’psm) City Park Chengdu 93 278 ~22,100 Waterfront Residences 43 168 ~23,800 Wuxi Seasons Residences 35 100 ~22,200 China Chic Nanjing 150 592 ~29,900 Total 321 1,1
Slide 34: Residential Landbank - Singapore
Residential Landbank - Singapore Total GFA Total Units Units Remaining Remaining Area Stake Tenure (sf) Units Launched Sold Units For Sales (sf) Launched Projects The Garden Residences 60% 99-yr 462,561 613 320 276 337 296,804 Corals at Keppel Bay 100% 99-yr 509,998 366 366 316 50 118,069 Reflection
Slide 35: Residential Landbank - China
Residential Landbank - China Total GFA Total Units Units Remaining Units Remaining Area Location Stake (sm) Units Launched Sold For Sale For Sale (sm) 8 Park Avenue 99% 131,957 918 918 908 10 3,043 Seasons Residences Shanghai 100% 119,262 1,101 1,062 1,060 41 4,906 Sheshan Riviera 99.4% 90,109 217 5
Slide 36: Residential Landbank - Other Overseas
Residential Landbank - Other Overseas Total GFA Total Units Units Remaining Remaining Area Location Stake (sm) Units Launched Sold Units For Sale For Sale (sm) Vietnam Saigon Sports City 100% 780,878 4,261 - - 4,261 453,768 Palm City 42% 492,471 3,043 1,587 1,579 1,464 145,686 Empire City HCMC 40% 6
Slide 37: Residential Launch Readiness – China
Residential Launch Readiness – China Units Ready to Launch Project Location 2020 2021 2022 8 Park Avenue 10 - - Seasons Residences Shanghai 41 - - Sheshan Riviera 34 47 - Hill Crest Villas - 42 36 Serenity Villas Chengdu 42 134 111 City Park 6 - - Waterfront Residences 298 47 10 Park Avenue Heights
Slide 38: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas Units Ready to Launch Project Location 2020 2021 2022 Indonesia West Vista at Puri 180 400 371 The Riviera at Puri 19 7 - Jakarta BCA site 300 151 - Wisteria 201 176 - Vietnam Saigon Sports City Velona 714 360 117 Natura - 768 384 Saigon Sports City (Sub
Slide 39: Expected Completion for Launched Projects
Expected Completion for Launched Projects Units Launched as at Units Sold as at Units Remaining as at Expected Projects/Phases launched Location Total Units end-Mar 2020 end-Mar 2020 end-Mar 2020 Completion China Seasons Residences (Ph 3B) 346 346 306 40 1H2021 Seasons Garden (Plot 8) 354 354 354 -
Slide 40: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects No. of Units Expected to be Completed Projects/Phases to be launched Location 2020 2021 2022 China Sheshan Riviera Shanghai - 105 - Serenity Villas 144 - 138 Chengdu Hill Crest Villas - - 45 Waterfront Residences - 56 - Park Avenue Heights Wuxi - 232 373 Sea
Slide 41: Commercial Projects - Under Development
Commercial Projects - Under Development Projects under Development Location Stake GFA (sm) Development Cost^ Completion China Park Avenue Central Shanghai 99% 115,950 RMB3.8b 2023 Seasons City Tianjin 100% 162,000 RMB2.6b 2020 (Ph 1) Indonesia IFC Jakarta Tower 1 Jakarta 100% 92,500 S$270m 2025 Viet
Slide 42: Commercial Projects - Completed
Commercial Projects - Completed Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore Keppel Bay Tower 100% 41,900 36,000 2002 Keppel Towers and Keppel Towers 2 Singapore 100% 58,600 45,400 1991/1993 I12 Katong 100% 26,200 19,600 2011* China Trinity Tower 30% 70,
Slide 43: Infrastructure
Infrastructure [<I Corporation 43 Of
Slide 44: Financial Highlights - Infrastructure
Financial Highlights - Infrastructure S$m 1Q 2020 1Q 2019 % Change Revenue 697 699 - EBITDA 180 26 >500 Operating Profit 166 12 >500 Profit Before Tax 182 20 >500 Net Profit 174 16 >500 44
Slide 45: Investments
Investments [<I Corporation 45
Slide 46: Financial Highlights - Investments
Financial Highlights - Investments S$m 1Q 2020 1Q 2019 % Change Revenue 289 143 102 EBITDA 38 151 (75) Operating (Loss)/Profit (10) 135 n.m.f. (Loss)/Profit Before Tax (32) 81 n.m.f. Net (Loss)/Profit (52) 49 n.m.f. n.m.f. denotes No Meaningful Figure 46
Slide 47: Residential Land Sales at Tianjin Eco-City
Residential Land Sales at Tianjin Eco-City Selling Price Sales Value Land Area GFA Plot Date Plot Ratio Based on (RMB’m) (Hectare) (sm) Based on GFA Land Area (RMB/sm) (RMB’m/hectare) Plot 36 Apr 2020 1,174 10.86 1.6 167,400 108 7,013 Plot 30c Sep 2019 438 2.77 3.1 84,500 158 5,200 Plot 34 Aug 2019
Slide 48: M1 Operational Highlights
M1 Operational Highlights Revenue Customers 2,272 290 2,199 224 260 213 103 494 78 Handset/Equipment 573 sales 8 Fibre ‘000 S$m 8 International call 42 services Prepaid 42 Fixed services Postpaid 1,554 1,413 Mobile services 137 132 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 48
Slide 49: Forward-looking statements notice
This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory