Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (May 2015)
31 slides from Keppel Infrastructure Trust's investor presentation, May 2015
Slide 1: Investor Presentation
Investor Presentation Creating the largest Singapore infrastructure-focused business trust May 2015
Slide 2: Disclaimer
Disclaimer 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 in Keppel
Slide 3: Table of contents
Table of contents 1. Transaction overview 2. Company overview 3. Key investment highlights of KIT 4. Pro forma financials 5. Conclusion 2
Slide 4: 1. Transaction overview
1. Transaction overview
Slide 5: Transaction overview
Transaction overview KMC Acquisition Equity Fund Raising Preferential offering No. of units: 218,862,495 Acquisition of Pref ratio: 1 unit for every 13 units as of BCD 51% interest in Price range: S$0.505 to S$0.545 KMC by KIT funded by an Equity Placement to limited no. of institutional and other Q
Slide 6: KIT will become the flagship investment vehicle for Singapore infrastructure
KIT will become the flagship investment vehicle for Singapore infrastructure Net asset value per unit (Pro forma as of 31 December 2014) Adjusted EBITDA (3) Public float (current vs pro forma) (4) (S$m) (S$m) (S$m) 1,410 (5) (2) + 51% 34.65 292 +57% (1) 33.98 +18% 934 186 29.39 KIT KIT after KMC Acq
Slide 7: The KMC Acquisition
The KMC Acquisition Acquisition of a 51% stake in KMC from Keppel Energy Pte Ltd (“KE”) Overview KMC owns Keppel Merlimau Cogen Plant, a 1,300 MW combined cycle gas turbine generation facility located on Jurong Island, Singapore Cash consideration of S$510m Consideration Equity value based o
Slide 8: Timetable for EFR
Timetable for EFR Event Date and time Launch of the Private Placement 20 May 2015 Close of the Private Placement 21 May 2015 Expected date of announcement of the Private Placement Issue 22 May 2015 Price and Preferential Offering Issue Price Expected date for commencement of trading of Placement Uni
Slide 9: Placement terms
Placement terms Company: Keppel Infrastructure Trust (“KIT”, Bloomberg ticker: KIT SP) Equity Fund raising of about S$525m Offering: i) Equity placement to institutional investors via Reg S ii) Separate non-renounceable preferential offering to existing KIT unitholders with Singapore registered addr
Slide 10: Preferential Offer terms
Preferential Offer terms ii) Preferential Offering: Non renounceable on the basis of 1 unit for every 13 existing units to existing KIT unitholders with Singapore registered address as of the books closure date No. of New Units: 218,862,495 units Price Range: S$0.505 – S$0.545 Offering Size: S
Slide 11: 2. Company overview
2. Company overview
Slide 12: KIT structure – before EFR
KIT structure – before EFR Keppel Temasek Public 22.9%(5) 19.97%(5) 57.1% 100% Trust Deed KIFM KIT 100% 51% 51% 100% City Gas City OG(2) KMC(1) Senoko WTE 100% 100% Basslink Pending completion Basslink 100% Telecoms Tuas WTE 70% 100% SingSpring(3) Ulu Pandan NEWater 100% 51% CityDC DC One(4) 100% Ci
Slide 13: Diversified portfolio of core infrastructure assets
Diversified portfolio of core infrastructure assets Water and Wastewater Power Generation, Electricity Waste Management Infrastructure Transmission and Gas Senoko Plant Tuas DBOO Plant Ulu Pandan Plant KMC Only waste incineration Newest of the four waste One of Singapore's A top-tier gas-fir
Slide 14: The KMC plant
The KMC plant Description of the KMC asset A substantial and strategic operational asset Metric Data A top-tier gas-fired power plant in Singapore Total generating 1,300 MW CCGT capacity Strategic asset in Singapore as power plants cannot be easily replicated given land constraints Location Temb
Slide 15: 3. Key investment highlights of KIT
3. Key investment highlights of KIT
Slide 16: Key investment highlights
Key investment highlights 1 Strategic infrastructure assets with long term stable cash flows 2 Portfolio with potential to extend average life of distributions 3 Benefits from Keppel’s continued sponsorship 4 A three-pronged growth strategy 5 Attractive yield despite low risk profile 6 KIT will beco
Slide 17: Strategic infrastructure assets with long-term stable cash flows
1 Strategic infrastructure assets with long-term stable cash flows KIT Investment Criteria Portfolio of highly strategic assets DataCentre KIT aims to provide unitholders with City Gas SingSpring Basslink KMC One long-term, regular and predictable distributions by pursuing investments that exhibit
Slide 18: …which results in a well diversified portfolio
1 …which results in a well diversified portfolio Adjusted EBITDA(1) by segment (2)(3) Total assets by segment (4)(5) Power Generation Electricity 18% Transmission 25% Electricity Water and Transmission Water and Wastewater 19% Wastewater Treatment Treatment 7% 8% Gas 12% Waste Management Waste 13% M
Slide 19: Portfolio with potential to extend average life of distributions
2 Portfolio with potential to extend average life of distributions Value beyond initial contract life 50 yrs KMC and Basslink have KMC 15 + 10 yrs 25 yrs substantially longer design 15 yrs lives than existing contracts 4 yrs Average age Remaining Extension Design life Land lease contract life opti
Slide 20: Benefits from Keppel’s continued sponsorship
3 Benefits from Keppel’s continued sponsorship A wholly-owned subsidiary of Keppel Corporation Limited Drives the Keppel group’s strategy to invest in, own and operate competitive energy and environmental infrastructure solutions and services Complementary businesses to that of KIT’s assets
Slide 21: A three-pronged growth strategy
4 A three-pronged growth strategy 1 Growth of existing portfolio 2 Keppel sponsorship 3 External opportunities Third Party Acquisitions Meet investment criteria Initial focus on existing energy, telecoms, waste and water sectors Jurisdictions with well Keppel Infrastructure developed legal fra
Slide 22: Attractive yield despite low risk profile
5 Attractive yield despite low risk profile Forward dividend yield (2015E) Infrastructure trusts Singapore Industrial REITs 9.4% 8.2% Average: 8.2% 7.9% 7.9% 7.5% Average: 6.9% 7.3% 7.2% 6.78 – 7.31% 6.7% 6.6% 6.1% 6.0% AIMS AMP Cache Cambridge Mapletree Mapletree Ascendas Keppel DC Asian Pay Hutchi
Slide 23: 4. Pro forma financials
4. Pro forma financials
Slide 24: Financial snapshot
Financial snapshot KIT after KMC Acquisition (in S$m) Cash flows Adjusted EBITDA(1) 292.2(2)(3) Distributable cash flows(4) 169.3(2)(5) Total distributions 143.2(2)(6) DPU (cents) 3.73 Leverage Cash 276.6(7)(8) Debt 1,875.1 Net debt / (cash) 1,598.5 Net debt / Total assets 39% Net debt / Adjusted EB
Slide 25: Sustainable capital structure
Sustainable capital structure Conservative KIT after KMC Acquisition will have a gearing ratio(1) of 33.1% Leverage Recent financing demonstrates lenders’ confidence in the capital structure Recent − KIT’s, City Gas and Basslink loans were refinanced in 2014 Refinancing − KMC loan to be in place
Slide 26: Sustainable capital structure (cont’d)
Sustainable capital structure (cont’d) Maturity profile Debt overview (in S$m) Blended average interest rate between 4-5% Approximately 92% of KIT’s loans − Singapore average interest rates between 3-4% are due in 2019 and beyond (after 955.0 KMC Acquisition) − Australian average interest rates
Slide 27: 5. Conclusion
5. Conclusion
Slide 28: Why KIT?
Why KIT? Attractive risk adjusted returns Underpinned by multiple core infrastructure assets Generates long term high quality stable cash flows from credit worthy clients or a large customer base Uncorrelated to GDP Potential upsides from existing portfolio and future acquisitions Future growth supp
Slide 29: Appendices
Appendices
Slide 30: Overview of the Proposed Transactions
Overview of the Proposed Transactions KMC Acquisition Structure KCL(1) 100% 5 Repayment of KI(2) Existing Unitholders New investors Shareholder Loan 1 EFR Preferential Offer 1 1 Placement 2 Acquisition of 51% of KMC 3 Subscription of S$500m 100% <30% S$525m(4) 1 QPDS 2 4 Obtain S$700m Bank S$255
Slide 31: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure’s pipeline [] Keppel Merlimau Cogen - 49% through Keppel Energy Operational since 2007 KI, as the sponsor of KIT, owns 49% shareholding in KMC through Keppel Energy Changi Business Park - 100% through Keppel DHCS Pte Ltd (“ Keppel DHCS”) First dist
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