Slide 1: 1H 2021 Financial Results
1H 2021 Financial Results 29 July 2021
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: Accelerating Execution of Vision 2030
Business Transformation • Signed non-binding MOUs in connection with proposed combination of Keppel O&M and Sembcorp Marine • Received bids for the logistics business, which are currently being evaluated Asset Monetisation • Announced over S$2.3b in asset monetisation .3 from Oct 2020 to Jul 2021, a
Slide 5: Robust Performance in 1H 2021
Net Profit Net Profit (Excl. RIDsi & government grants) Robust Performance in 1H 2021 300 56 280 S$m 258 117 27 - Net profit grew to S$300m, 215 279 149 reversing net loss of S$537m for 0 S$m (179) 1H 2020 All key business units 0 (958) were profitable (72) Improved performance across all 1H 2019 1H
Slide 6: Key Figures 1H 2021
Free cash inflow Interim cash dividend S$499m 12cts/share Improved from free cash outflow of Compared to 3cts per share for 1H S$664m for 1H 2020 2020 & 8cts per share for 1H 2019 Stronger dividend underpinned by asset monetisation programme Net gearing as at Impairments related to KrisEnergy’s Key
Slide 7: Multiple Income Streams
Multiple Income Streams Recurring income grew 28% to S$152m in 1H 2021 from S$119m in 1H 2020 Net Profit by Income Type 300 44 115 Recurring Income S$m 81 113 174 55 As part of Vision 2030, 119 152 EPC/Development for Sale 0 the Group will focus on (185) Revaluation improving earnings quality Profit
Slide 8: Energy & Environment
Energy & Environment Energy & Environment Net Profit • Energy & Environment segment recorded lower net loss of S$179m for 1H 2021, compared to a net loss of S$958m for 1H 2020 60 • Segment’s loss largely due to S$318m in exposure to KrisEnergy, 64 107 partly offset by S$269m from share of Floatel’s
Slide 9: Energy & Environment
Energy & Environment • Keppel Infrastructure’s 1H 2021 contributioni stable at S$60m • EBITDA was S$64m for 1H 2021 vs S$80m for 1H 2020 • Hong Kong IWMFii and Tuas Nexus projects progressing steadily despite disruptions caused by COVID-19; about 33% and 11% completed respectively Keppel Infrastruct
Slide 10: Urban Development
Urban Development • Urban Development segment’s net profit grew 30% yoy to Urban Development Net Profit S$279m for 1H 2021 • S$5.1b in dividends upstreamed by Keppel Land since 279 15 2015, compared to its privatisation cost of S$3.1b 215 12 • Keppel Land’s contributioni improved 25% yoy to S$252m 2
Slide 11: Urban Development
Urban Development • Home sales more than doubled yoy to 2,650 units in 1H 2021, Home Salesi bolstered by stronger performance across all key markets • Sales of 8,570 overseas units worth S$4.8b to be recognised Sales value: S$2.5b from 2H 2021 - 2025 Sales value: • Property portfolio comprises resid
Slide 12: Connectivity
Connectivity Connectivity Net Profit • Connectivity segment’s net profit grew to S$27m for 1H 2021 0 27 • Keppel Data Centres’ performance improved, with losses 20 narrowing to S$2m for 1H 2021 from S$12m for 1H 2020 S$m 40 21 • Does not include S$15m in data centre earnings for 1H 0 2021 from Keppe
Slide 13: Connectivity
Connectivity Bifrost Cable System • Making good progress • Design being finalised; manufacturing to commence in 2022 • Signed definitive agreements with Converge to grant Indefeasible Right of Use for one of Keppel’s fibre pairs and jointly develop the Davao branch • Leveraging synergies with M1 and
Slide 14: Connectivity
Connectivity • M1’s contribution of S$21m in 1H 2021 was lower yoy, due to lower roaming and prepaid revenue • EBITDA was S$111m for 1H 2021, vs S$141m for 1H 2020 • Postpaid customer base grew 5% yoy to over 1.6 million • Announced plans to realise value of M1’s network assets M1’s transformation s
Slide 15: Asset Management
Asset Management • Asset Management segment’s net profit was S$117m for Asset Management Net Profit 1H 2021 compared to S$258m for 1H 2020 • 1H 2020 had benefited from S$177m in gains from 258 reclassification of KIT and sale of KDCREIT units • Keppel Capital’s contributioni grew 23% yoy to S$64m fo
Slide 16: Asset Management
Asset Management Asset Management Feesi • Asset management feesi grew 35% to S$111m in 1H 2021 from S$82m in 1H 2020 • Keppel Capital raised total equity of over S$2b YTD 111 • Inked 4 separate managed accounts YTD with global investors to invest in core infrastructure assets, high quality 82 logist
Slide 17: Conclusion
Conclusion As we accelerate the execution of Vision 2030, Keppel will emerge post-pandemic stronger, more relevant, and on a faster growth path. • Returned to profitability in 1H 2021, with significant improvement even over pre-COVID 1H 2019, excluding RIDs and COVID-19-related government grants • A
Slide 18: Group Financial Highlights by CFO
Group Financial Highlights by CFO 18
Slide 19: 1H 2021 Financial Performance
1H 2021 Financial Performance Key highlights S$m 1H 2021 1H 2020 % Change Net Profit ↑ from net loss of S$537m to net profit of S$300m Revenue 3,677 3,182 16 ROE ↑ from negative 10.3% to EBITDA 385 52 >500 (Annualised) positive 5.5% Operating Profit/(Loss) 188 (149) n.m.f. Free Cash ↑ from outflow o
Slide 20: 1H 2021 Revenue by Segment
1H 2021 Revenue by Segment S$m 1H 2021 % 1H 2020 % % Change Energy & Environment 2,104 57 2,024 64 4 Urban Development 909 25 511 16 78 Connectivity 586 16 587 18 - Asset Management 78 2 60 2 30 Subtotal 3,677 100 3,182 100 16 Corporate & Others - - - - - Total 3,677 100 3,182 100 16 20
Slide 21: 1H 2021 Pre-tax Profit by Segment
1H 2021 Pre-tax Profit by Segment S$m 1H 2021 1H 2020 % Change Energy & Environment (177) (942) (81) Urban Development 451 347 30 Connectivity 38 13 192 Asset Management 135 270 (50) Subtotal 447 (312) n.m.f. Corporate & Others 69 (45) n.m.f. Total 516 (357) n.m.f. n.m.f. denotes No Meaningful Figur
Slide 22: 1H 2021 Net Profit by Segment
1H 2021 Net Profit by Segment S$m 1H 2021 1H 2020 % Change Energy & Environment (179) (958) (81) Urban Development 279 215 30 Connectivity 27 - n.m.f. Asset Management 117 258 (55) Subtotal 244 (485) n.m.f. Corporate & Others 56 (52) n.m.f. Total 300 (537) n.m.f. n.m.f. denotes No Meaningful Figure
Slide 23: 1H 2021 Financial Performance (excl. RIDs)
1H 2021 Financial Performance (excl. RIDsi & COVID-19-related government grants) Key highlights S$m 1H 2021 1H 2020 % Change Net Profit ↑ from net loss of S$72m to net profit of S$280m Revenue 3,677 3,182 16 EBITDA 559 283 98 Operating Profit 362 82 341 Profit Before Tax 463 74 >500 Net Profit/(Loss
Slide 24: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 948 52.3 815 784 135 43.2 44.8 7.5 38.9 707 127 143 227 6.9 7.9 12.5 192 265 10.5 225 14.6 249 12.4 159 13.7 8.8 205 171 153 300 11.3 9.4 8.4 252 337 31 18.6 16.5 211 203 300 13.9 1.7 11.6 11.2 16.5 (29.5) (537) (27.8) (506) i i 1Q 2Q 3Q 4Q 1H 2H 1Q 2Q 3
Slide 25: ROE & Dividend
ROE & Dividend 8.4% i 6.9% 6.9% 6.3% 5.5% 30 20 22 20 15 ii 10 12 8 8 8 3 -4.6% 2016 2017 2018 2019 2020 2021 ROE Interim Dividend Full-Year Dividend i Excludes one-off financial penalty from global resolution & related costs ii Includes special cash dividend of 5.0cts/share 25
Slide 26: Free Cash Flow
Free Cash Flow S$m 1H 2021 1H 2020 Operating profit 188 (149) Depreciation & other non-cash items 25 (97) Provisions made for stocks, contract assets and doubtful debts 130 676 Working capital changes (416) (660) Interest & tax paid (260) (149) Net cash used in operating activities (333) (379) Inves
Slide 27: Questions & Answers
Questions & Answers [TT Corporation 27 ff
Slide 28: Additional Information
Additional Information [ESET Corporation 23 ff
Slide 29: Vision 2030 Asset Monetisation
Vision 2030 Asset Monetisation Announced from Oct 2020 to Jul 2021: No Asset Country Consideration (S$m) 1 Taicang Xuchang Property China 104.0 2 24.01% stake in Business Online Public Company Thailand 36.0 3 Chengdu Hilltop Development China 250.4 4 30% stake in Dong Nai Waterfront City Vietnam 115
Slide 30: Vision 2030 Segments & Income Streams
Vision 2030 Segments & Income Streams Energy & Environment Urban Development Connectivity Asset Management • Repairs & conversions • Rental income from • M1 • Keppel Capital • Keppel O&M associates in investment properties • Data Centres (DCs) • Share of profit from KREIT, charter business • Hospita
Slide 31: Revenue by Geography
Revenue by Geography • 46% of total revenue came from overseas customers Overseas Singapore Total 1H 2021 Customers Customers (S$m) (%) (%) Energy & Environment 2,104 39 61 Urban Development 909 91 9 Connectivity 586 3 97 Asset Management 78 9 91 Subtotal 3,677 46 54 Corporate & Others - - - Total 3
Slide 32: EBITDA by Segment
EBITDA by Segment S$m 1H 2021 1H 2020 % Change Energy & Environment (221) (557) (60) Urban Development 411 309 33 Connectivity 142 132 8 Asset Management 59 228 (74) Subtotal 391 112 215 Corporate & Others (6) (60) (90) Total 385 52 >500 32
Slide 33: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 30 Jun 2021 31 Dec 2020 Shareholders’ Funds 11,131 10,728 Total Equity 11,529 11,156 Net Debt i 9,808 10,123 i Net Gearing Ratio 0.85x 0.91x ROE 5.5% (4.6%) i Net debt and net gearing ratio included lease liabilities 33
Slide 34: Net Profit by Business Unit
Net Profit by Business Unit S$m 1H 2021 1H 2020 % Change Keppel Offshore & Marine 107 (959) n.m.f. Keppel Infrastructure 77 206 (63) Keppel Land i 263 217 21 Share of SSTEC’s results 12 29 (59) Keppel Telecommunications & Transportation ii 41 51 (20) M1iii 21 40 (48) Keppel Capital 61 47 30 KCL, Oth
Slide 35: Net Profit by Business Unit
Net Profit by Business Unit Keppel KCL, SSTEC, Keppel Keppel Keppel S$m Offshore & Keppel Land M1 Others & Infrastructure T&T Capital Marine Elimination Net Profit by BU 107 77 263 41 21 61 (270) • Share of SSTEC’s - - 12 - - - (12) results • REITs & Trust - (17) (4) (13) - 40 (6) • Private Funds -
Slide 36: Energy & Environment
Energy & Environment [ESET Corporation 36 fF
Slide 37: Financial Highlights – Energy & Environment
Financial Highlights – Energy & Environment S$m 1H 2021 1H 2020 % Change Revenue 2,104 2,024 4 EBITDA (221) (557) (60) Operating Loss (294) (633) (54) Loss Before Tax (177) (942) (81) Net Loss (179) (958) (81) 37
Slide 38: Keppel O&M’s Operational Review
Keppel O&M’s Operational Review Net Orderbooki • Secured ~S$3.1b of new orders in 1H 2021: 5.7 • An FPSO vessel, an FSRU conversion, an LNG carrier repair, a trailing suction hopper 0.9 dredger repair, and a wind turbine 1.4 installation vessel upgrade project 3.3 0.1 • Project deliveries in 1H 2021
Slide 39: Keppel O&M’s Orderbook
Keppel O&M’s Orderbook Contract Value S$m Gross Net Client For delivery in 2021 5 JUs/1 Semi*/3 FPSO Modules Fabrication & Integration*/1 FPSO Topside Clearwater/Fecon/TS Offshore Integration*/2 FPSO Topside Fabrication & Integration/2 Dredgers/ /Petrobras/Modec/*Name withheld/Ørsted 2 offshore wind
Slide 40: Urban Development
Urban Development [TE Corporation 40 f
Slide 41: Financial Highlights - Urban Development
Financial Highlights - Urban Development S$m 1H 2021 1H 2020 % Change Revenue 909 511 78 EBITDA 411 309 33 Operating Profit 395 291 36 Profit Before Tax 451 347 30 Net Profit 279 215 30 41
Slide 42: Sales Achieved - Overseas
Sales Achieved - Overseas Units Sold in Sales Value in Latest Key Projects Location 1H 2021 1H 2021 Avg. Selling Price China (RMB’m) (RMB’psm) Upview Shanghai 685 3,187 ~45,500 Park Avenue Heights 167 321 ~17,800 Wuxi Seasons Residences 416 1,081 ~21,800 Noblesse IX Nanjing 99 1,985 ~58,300 Total 1,
Slide 43: Residential Landbank - Singapore
Residential Landbank - Singapore Remaining Remaining Total GFA Total Units Units Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Launched Projects The Garden Residences 60% 99-yr 462,561 613 613 613 - - Corals at Keppel Bay* 100% 99-yr 509,998 366 366 329 37 103,367 Reflectio
Slide 44: Residential Landbank - China
Residential Landbank - China Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) 8 Park Avenue 99% 131,957 918 918 918 - - Seasons Residences 100% 123,837 1,185 1,185 1,185 - - Shanghai Sheshan Riviera 99.4% 90,109 217 112 92 125
Slide 45: Residential Landbank - Other Overseas
Residential Landbank - Other Overseas Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Vietnam Saigon Sports City 100% 780,878 4,261 - - 4,261 453,768 Palm City 42% 495,900 3,042 1,586 1,525 1,517 151,258 Empire City 40% 661,37
Slide 46: Residential Launch Readiness – China
Residential Launch Readiness – China Units Ready to Launch Project Location 2H 2021 2022 2023 Sheshan Riviera 6 14 - Shanghai Upview 352 525 - Waterfront Residences 2 56 4 Park Avenue Heights Wuxi 1 - - Seasons Residences 597 982 - Serenity Villas 23 19 - Tianjin Waterfront Residences II 141 84 92 N
Slide 47: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas Units Ready to Launch Project Location 2H 2021 2022 2023 Vietnam Saigon Sports City Velona - 714 360 Natura - - 768 Riviera Point ^ The Infiniti 10 - - Phase 2 - 438 - Empire City Cove Residences 1 - - HCMC Narra Residences 29 - - Empire City (Subsequent
Slide 48: Expected Completion for Launched Projects
Expected Completion for Launched Projects Total Units Launched as Units Sold as Units Remaining Expected Projects/Phases Launched Location Units at end-Jun 2021 at end-Jun 2021 as at end-Jun 2021 Completion China Seasons Residences (Ph 3B) 346 346 346 - 2H2021 Tianjin Waterfront Residences II 572 28
Slide 49: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects No. of Units Expected to be Completed Projects/Phases to be launched Location 2021 2022 2023 China Waterfront Residences - - 56 Wuxi Seasons Residences - 1,078 - Sub-Total - 1,078 56 Vietnam Celesta - - 752 HCMC Nha Be Site (landed) - 43 - Sub-Total - 43 752
Slide 50: Commercial Projects - Under Development
Commercial Projects - Under Development Expected Projects under Development Location Stake GFA (sm) Development Cost ^ Completion Singapore Keppel Towers Singapore 100% 59,200 TBC 2024 China Park Avenue Central Shanghai 99% 113,220 RMB 3.8b 2023 Seasons City Tianjin 100% 162,450 RMB 2.6b 2021 Vietna
Slide 51: Commercial Projects - Completed
Commercial Projects - Completed Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore I12 Katong Singapore 100% 26,210 19,640 2011 * China Trinity Tower 30% 70,000 48,600 2015 International Bund Gateway 29.8% 74,130 62,010 2018 Shanghai K Plaza 99.4% 40,900 30,51
Slide 52: 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 17 Mar 2021 1,512 20.28 1.5 299,590 75 5,047 Plot 18b Oct 2020 669 7.22 1.1 79,700 93 8,400 Plot 36 Apr 2020 1,
Slide 53: Connectivity
Connectivity [TE Corporation 38
Slide 54: Financial Highlights - Connectivity
Financial Highlights - Connectivity S$m 1H 2021 1H 2020 % Change Revenue 586 587 - EBITDA 142 132 8 Operating Profit 41 29 41 Profit Before Tax 38 13 192 Net Profit 27 - n.m.f. n.m.f. denotes No Meaningful Figure 54
Slide 55: M1 Operational Highlights
M1 Operational Highlights Revenue Customers 518 2,201 505 2,118 225 230 157 160 407 244 16 11 87 S$m 88 ‘000 1,569 1,644 258 246 0 0 1H 2020 1H 2021 End-Jun 2020 End-Jun 2021 Mobile services Fixed services Postpaid Prepaid Fibre broadband International call services Equipment sales 55
Slide 56: Asset Management
Asset Management [TE Corporation 36
Slide 57: Financial Highlights - Asset Management
Financial Highlights - Asset Management S$m 1H 2021 1H 2020 % Change Revenue 78 60 30 EBITDA 59 228 (74) Operating Profit 58 227 (74) Profit Before Tax 135 270 (50) Net Profit 117 258 (55) 57
Slide 58: Stakes in REITs/ Trust & Private Funds
Stakes in REITs/ Trust & Private Funds Asset Classi Valueiii (S$b) Real estate 2.4 Data centres 0.9 Infrastructure 0.5 Alternative assetsii 0.2 Total 4.0 i Comprises listed REITs/Trust and private funds. ii Includes senior living, education and logistics vehicles, as well as private credit fund. iii