Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Merger or Acquisition (December 2020)
24 slides from Keppel Infrastructure Trust's merger presentation, Dec 8, 2020
Slide 1: Proposed Acquisition of Philippine Tank Storage International (Holdings) Inc.
Proposed Acquisition of Philippine Tank Storage International (Holdings) Inc. 8 December 2020
Slide 2: Important Notice
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 to purchase or subscribe for any units (“U
Slide 3: Outline
Outline 1 Overview of Proposed Acquisition 4 2 Investment Merits 8 3 Financial Overview 17 4 Additional Information 22 3
Slide 4: Overview of Proposed Acquisition
Overview of Proposed Acquisition
Slide 5: Overview of Proposed Acquisition
Overview of Proposed Acquisition Acquisition Summary • Proposed acquisition of 80% of share capital in Philippine Tank Storage International (Holdings) Inc. (PTSI), which owns subsidiary Philippine Coastal Transaction Storage & Pipeline Corporation (PCSPC) Overview • Metro Pacific Investments Corpor
Slide 6: Key Highlights of PCSPC
Key Highlights of PCSPC Storage Capacity 2019 EBITDA 2014-2019 EBITDA CAGR 6 million barrels ~S$40 million1 5.8% by early-2021 USD-denominated Products Stored Blue Chip Customers “take-or-pay” Contracts • Diesel • Gasoline Government Agency No exposure to petroleum • Jet Fuel • Biodiesel Oil & Gas C
Slide 7: Key Merits
Key Merits Highly defensive sector with Strategically aligned with quality infrastructure-like attributes KIT’s investment focus PCSPC is the largest petroleum products 1 import storage facility in the Philippines Strengthening Long-term focus on KIT’s stable cash 2 Strategically located in the Subi
Slide 8: Investment Merits
-Investment Merits KEPPEL INERASTRUCTURE “TRUST
Slide 9: Largest Petroleum Products Storage Facility in the Philippines
1 Largest Petroleum Products Storage Facility in the Philippines • Operation spans approximately 150 hectares in the strategic Subic Bay Freeport Zone, with land available for future expansion • Assets consist of 6 berths and 86 storage SUBIC tanks, with storage capacity of BAY approximately 6 milli
Slide 10: Strategic Location and an Essential Service Provider
2 Strategic Location and an Essential Service Provider • Strategically located at the Subic Bay Freeport Zone that is easily accessible by major oil refiners located in North and Southeast Asia via specialised vessels • Well connected to major demand areas of the Luzon region. Manila Metro Manila, C
Slide 11: Sustainable Competitive Advantage
3 Sustainable Competitive Advantage • Storage terminal with the largest capacity and highest number of coastal berths in the Philippines that can accommodate medium-ranged vessels servicing the Asian region • Strategic locational advantages in the Subic Bay Freeport Zone, including: (1) protection f
Slide 12: Sticky Blue Chip Customer Base with Take-or-Pay Contracts
4 Sticky Blue Chip Customer Base with “Take-or-Pay” Contracts By Customer Type (% as at Oct 2020 contracted storage) • Large majority are industrial customers or government agencies with “take-or-pay” contracts; significantly mitigates exposure to Others, 9% petroleum price and volume risk Wholesale
Slide 13: Strong Long-Term Demand for Clean Petroleum Products
5 Strong Long-Term Demand for Clean Petroleum Products Demand of Key Clean Petroleum Products (2010-50, MB/d) Diesel/Gasoil Jet/Kerosene Gasoline • Demand for clean petroleum products is 1.0% projected to increase by 2.7% p.a. from 600 2.7% 2019 to 2030 and 1.0% p.a. from 2030 to COVID Recovery 400
Slide 14: Significant Storage Capacity Shortfall in the Long-Term
5 Significant Storage Capacity Shortfall in the Long-Term Significant storage capacity shortfall in the long-term will drive additional import terminal capacity requirements 14 MMB Capacity Shortage 12 10 8 6 4 2 0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 • Closure
Slide 15: Strong Economic Growth in the Philippines
5 Strong Economic Growth in the Philippines Philippine GDP Growth Projection Philippine Population Forecast 150 US$ billion Forecast Forecast 3,000 10% 100 Million 8% 8% 8% 2,000 7% 7% 6% 6% 6% 5% 4% 4% 50 1,000 2% 0 0% 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 2010 2015 2020 2025 2030 2035 204
Slide 16: Future Capacity Growth to Support Projected Strong Demand
5 Future Capacity Growth to Support Projected Strong Demand Capacity additions (MMB) Forecast 6.8 Total Capacity Added: 3.2MB 2011-2020 CAGR: 9.9% 6.1 6.1 5.6 5.2 5.2 5.2 4.7 4.7 4.7 4.7 3.4 2.4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Includes the Maritan Phase 3 Expansion w
Slide 17: Financial Overview
Financial Overview T KEPPEL KX| | IN STRUCTURE
Slide 18: Strengthens Sustainability of Cash Flows
Strengthens Sustainability of Cash Flows The strategic addition of PCSPC is in line with KIT’s growth agenda to diversify and strengthen the Trust’s cash flows to support long-term sustainable distributions Pro forma Pro forma Group Operational Cash Flow Group Operational Cash Flow from non-Concessi
Slide 19: Strengthens Sustainability of Cash Flows (cont'd)
Strengthens Sustainability of Cash Flows (cont’d) Operational Cash Flows ($m)1 Distributable Cash Flows (DCFs) 5.5% 133.2 Payout Ratio (%)2 126.3 DCF ($M) 5% 200.0 188.7 199.1 100 149.5 144.2 141.2 80 150.0 31% 30% 119.3 94.2 60 100.0 40 50.0 20 23% 22% 0.0 0 FY 2016 FY 2017 FY 2018 FY 2019 Pro-form
Slide 20: Strengthens Diversification
Strengthens Diversification By Businesses and Assets (%) By Businesses and Assets (with PCSPC 1) (%) As at 30 June 2020 Post-Acquisition 10.2 19.8 10.5 12.0 19.8 9.3 15.2 $5.0 $5.7 billion 17.4 billion 8.1 15.6 13.6 City Gas 22.6 City Gas 25.9 Basslink Ixom Basslink KMC Ixom Waste & Water KMC Trust
Slide 21: Thank You
Thank You Constituent of: www.kepinfratrust.com MSCI Singapore FTSE ST Large Connect with us on: Small Cap Index & Mid-Cap Index
Slide 22: Additional Information
Additional Information
Slide 23: Philippine Coastal Storage & Pipeline Corporation
Philippine Coastal Storage & Pipeline Corporation 23
Slide 24: Pro-forma Distributable Cash Flows
Pro-forma Distributable Cash Flows Pro-forma 1H 2020 1H 2020 +/(-) (with PCSPC) S$’000 % S$’000 Distribution & Network 75,398 68,437 10.2 City Gas 29,011 29,011 - Ixom 39,426 39,426 - PCSPC 6,961 - N/M Energy 21,607 21,607 - Waste & Water 36,219 36,219 - Others1 (13,954) (12,945) (7.8) Distributable
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