Slide 1: Briefing to Retail Shareholders
Briefing to Retail Shareholders Hosted by SIAS 20 August 2019
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Address by CEO
Address by CEO 3
Slide 4: Transforming to Deliver
Transforming to Deliver The key pieces of our transformation are in place and we are focused on executing our growth initiatives. Privatised Keppel Land Restructured asset Restructured Keppel O&M Privatised managers under into the New Builds and Keppel T&T Began rightsizing Keppel Capital Conversion
Slide 5: Creating & Capturing Value
Creating & Capturing Value Our Engines Our Business Model Our Target Offshore & Marine 15% Operate & Stabilise & REITs Keppel + Private Funds Maintain Monetise & Trust Property Design & Recurring income Revaluation & Recurring income Build divestment gains Mid to long Infrastructure Project-based Tu
Slide 6: In 2019, we received Final Notice to Proceed to convert Golar's 2nd FLNG
In 2019, we received Final Notice to Proceed to convert Golar’s 2nd FLNG vessel, the Gimi, expanding our track record for gas solutions. Hilli Episeyo, the world’s first-of-its-kind converted FLNG vessel
Slide 7: Offshore & Marine
Offshore & Marine • Secured quality contracts New orders worth S$1.9b YTD, 1.9 exceeding S$1.7b won 1.7 0.1 in 2018 0.6 0.7 • Offshore wind solutions gaining traction with 0.2 S$b 0.5 ~S$720m worth of contracts won in 2Q 2019 0.9 0.6 • Net orderbook of S$5.5b as at end-Jun 2019 is the 0 highest sinc
Slide 8: Keppel Land continues to deepen its presence in fast-growing cities
Keppel Land continues to deepen its presence in fast-growing cities across China and Vietnam, and turn assets efficiently to achieve high returns. Launch of The Infiniti in Ho Chi Minh City
Slide 9: Property
Property Seizing opportunities Home sales • Deeping presence in key cities 2,100 such as Nanjing and Tianjin 190 50 • Acquired a commercial building 1,385 110 in Shanghai with AAMTFi III 225 610 Units and co-investors 150 130 80 • Acquired stakes in three 1,140 800 residential sites in HCMC • Collab
Slide 10: Keppel Infrastructure continues to grow recurring income
Keppel Infrastructure continues to grow recurring income from operations and maintenance, with KMEDP commencing testing and commissioning in 3Q 2019. Keppel Marina East Desalination Plant
Slide 11: Growing Data Centre Portfolio
Growing Data Centre Portfolio 23 25% The US$1 billion Alpha Data Centre Fund continues to grow its portfolio Data centre developments Compounded annual growth rate of developmental assets. across Asia-Pacific & Europe of net lettable area since 2014 S$3.0b Net Lettable Area (million sq ft) Combined
Slide 12: We create value for shareholders by investing strategically
We create value for shareholders by investing strategically, developing new growth engines and harnessing synergies across the Group. Saigon Sports City in Ho Chi Minh City
Slide 13: Fuelling Growth through Asset Management
Fuelling Growth through Asset Management Keppel Capital aims to grow AUM and connect investors with high-quality real assets in sectors fuelled by urbanisation trends. Current vehicles New asset classes ✓ Infrastructure assets Private Funds ▪ Among SGX’s largest Pan- ▪ Manages private funds Asian co
Slide 14: Driving M1's Transformation
Driving M1’s Transformation FOCUS AREAS BUSINESS UPDATES Accelerating core consumer growth One Plan >15,000 new customers secured in first month following launch of simplified plan Expanding B2B segment and improved customer experience Improving cost efficiencies Partnering IMDA and PSA to testbed 5
Slide 15: Growing B2C Business
Growing B2C Business Connectivity Gas Retail M1 City Gas’ customers 2.2 million 800,000 Customer base Household customers Keppel Group Electricity Retail Urban Logistics Keppel Electric’s OEM market share UrbanFox 150,000 Growing omnichannel solution offerings in Singapore and overseas Household cus
Slide 16: Investing in Innovation
Investing in Innovation We have invested close to S$100m in venture capital, businesses and startups focused on new technologies and innovations in the year to date. FUND INVESTMENTS DIRECT INVESTMENTS Property China Tech Enterprise & Edge Data Electric Vehicle Technology Startups Deep Tech Centre S
Slide 17: Address by CFO
Address by CFO 17
Slide 18: Financial Performance
Financial Performance Key highlights Net profit • Annualised ROE was 6.3% 586 S$356m 66 • Free cash outflow of S$614m in 1H 2019 vs 1H 2019 net profit down 39% yoy inflow of S$873m in 356 1H 2018 S$m as 1H 2018 benefitted from 25 606 en-bloc sales worth S$416m 59 262 • Net gearing was 0.82x as 10 at
Slide 19: Offshore & Marine
Offshore & Marine Key highlights Net profit • S$10m net profit recorded 10 in 1H 2019 due mainly to 9 higher investment income, S$m 1H 2018 1H 2019 % 5 6 lower net interest expense 0 (5) and higher contribution Revenue 939 813 (13) from associates (34) S$m Operating 14 14 - profit (11) Net profit (4
Slide 20: Property
Property Key highlights Net profit • 1H 2019 net profit lower 606 yoy in the absence of 31 gains from en-bloc sales S$m 1H 2018 1H 2019 % 47 worth S$416m in 1H 2018 • Sale of 8,690 overseas S$m Revenue 787 628 (20) 537 262 units worth ~S$2.9b 22 Operating recognisable from 699 270 (61) 129 profit 2H
Slide 21: Infrastructure
Infrastructure Key highlights Net Profit • 1H 2019 net profit lower yoy in the absence of 66 59 dilution gain from Keppel S$m 1H 2018 1H 2019 % 29 14 DC REIT’s private placement • Keppel Infrastructure S$m Revenue 1,211 1,425 18 delivered strong earnings 56 Operating 48 growth on improved 52 39 (25)
Slide 22: Investments
Investments Key highlights Net Profit • 1H 2019 net profit higher 25 yoy due to improved earnings from Keppel Capital, higher S$m 1H 2018 1H 2019 % 39 contribution from M1 and S$m 31 re-measurement gain of 11 Revenue 56 449 >500 37 previously held interest 11 0 in M1 Operating (56) (52) 1 159 >500 p
Slide 23: ROE & Dividend
ROE & Dividend 18.8% 14.2% 48 8.3% 6.9% 6.9%i 6.3% 34 30 20 22 ii 12 12 15 8 8 8 2014 2015 2016 2017 2018 2019 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 23
Slide 24: Q&As
Q&As 24