Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (March 2018)
19 slides from Keppel Infrastructure Trust's investor presentation, March 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
Slide 2: Disclaimer
Disclaimer Not for distribution in the United States 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 pur
Slide 3: At a Glance
At a Glance Key Highlights Financial Snapshot One of Singapore’s largest infrastructure business trusts Market Value (1) Generates long-term, regular and predictable cash flows Market Capitalisation S$ 2,199 m from a diversified portfolio of core infrastructure assets: Enterprise Value S$ 3,780 m
Slide 4: Large & Well-diversified Portfolio of Core Infrastructure Assets
1 Large & Well-diversified Portfolio of Core Infrastructure Assets Investment Criteria Portfolio of highly strategic assets Telecoms KIT aims to provide Unitholders Utilities Infrastructure Power Infrastructure Infrastructure with long-term, regular and predictable distributions by Singapore DataC
Slide 5: Generates Long-term Predictable Cash Flows Uncorrelated to GDP
2 Generates Long-term Predictable Cash Flows Uncorrelated to GDP… 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, Singapor
Slide 6: Supporting Regular and Stable Distributions
2 … Supporting Regular and Stable Distributions DPU (S cents) 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 5
Slide 7: Diversified Portfolio of Core Infrastructure Assets
3 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)
Slide 8: Strong Balance Sheet
4 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
Slide 9: Three-pronged Growth Strategy
5 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
Slide 10: Attractive Risk Adjusted Returns
6 Attractive Risk Adjusted Returns Distribution Yield (1) Infrastructure Trusts Singapore Industrial REITs 12.0% Average: 7.6% Average: 7.2% 8.9% 8.8% 8.3% 8.2% 8.1% 8.0% 7.5% 7.2% 6.5% 5.4% 5.2% 6.3% 6.1% 5.8% 5.1% Asian Pay Accordia Golf Hutchison Port Keppel Keppel NetLink NBN Ascendas Soilbuild
Slide 11: Key Investment Highlights
7 Key Investment Highlights KIT is well-positioned to deliver long-term value and growth to Unitholders. 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 ba
Slide 12: Additional Information
Additional Information (GF) infrastructure Trust |,
Slide 13: 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%
Slide 14: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure has a pipeline of assets for possible acquisition by KIT, subject to meeting KIT’s investment criteria and other strategic considerations Keppel Marina East Desalination Plant - 100% through Keppel Infrastructure Services Singapore’s fourth desalination
Slide 15: Key Differences: Business Trusts, REITs and Listed Companies in Singapore
Key Differences: Business Trusts, REITs and Listed Companies in Singapore Business Trust S-REIT Listed Company Regulatory Regime • Business Trusts Act • Code on Collective Investment • Companies Act Scheme Constitution • Not a separate legal entity • Not a separate legal entity • A separate legal en
Slide 16: KIFM Management Fee Structure
KIFM Management Fee Structure Management Fee • S$2.0 million per annum • Inflation adjustment in reference to the CPIS Performance Fee • 4.5% p.a. of sum of cash flow received by KIT Acquisition Fee • 0.5% of the Enterprise Value of any investment acquired, where the investment is acquired from: − S
Slide 17: Loan Profile
Loan Profile Entity Amount (S$’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 16
Slide 18: 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
Slide 19: Thank You
Thank You www.kepinfratrust.com 18
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