Keppel Ltd. · SGX:BN4
Keppel — Investor Day (August 2024)
58 slides from Keppel's investor day presentation, Aug 20, 2024
Slide 1: Building a leading global asset manager & operator
Building a leading global asset manager & operator Mr Loh Chin Hua, CEO, Keppel Ltd. Investor Day, 20 August 2024
Slide 2: We have taken bold steps to transform Keppel
We have taken bold steps to transform Keppel 1 What did we do? Before After: the new Keppel Harnessed our industrial Asset manager funding Balance sheet player roots to transform into a growth with FUM global asset manager and operator One horizontally Diverse conglomerate integrated company Lumpy t
Slide 3: Delivering winning value proposition to LPs
Delivering winning value proposition to LPs Established asset manager with over 20 years of track record, seasoned management team and well-known LP network $21.9b $30.5b 20% 2.0x $85b Funds raised Capital deployed Average internal Average equity Funds under from 2020-1H24 from 2020-1H24 rate of ret
Slide 4: Making strong progress towards our transformation goals
Making strong progress towards our transformation goals Pressing forward with asset monetisation Recurring income >$5.6b +85% $388m Announced cumulatively since Oct 2020, with target of $10-$12b by end-2026 $340m 75 30 $210m Capturing synergies from transformation 38 >$50m 310 313 172 Annual cost sa
Slide 5: Our asset-light strategy is bearing fruit
Our asset-light strategy is bearing fruit We are doing more with less, pursuing growth and improving returns to shareholders Since the start of 2022, total assets on balance sheet have decreased by 14% to $27.7b while FUM more than doubled to $85b, generating attractive fee income at an annualised F
Slide 6: Our growth will be funded by our FUM
Our growth will be funded by our FUM Propelling Keppel towards $200b FUM by 2030 with strong organic growth initiatives, including co-investments by our private funds, and opportunistic M&A Funds under Managementi Organic growth initiatives: Well positioned to seize $200b opportunities Private funds
Slide 7: We harness synergies from our operating platform to build strong competitive advantage
We harness synergies from our operating platform to build strong competitive advantage We create critical solutions and assets that address sustainable development needs while providing strong returns to our investors Solutions for a sustainable future Infrastructure Pathways to decarbonising assets
Slide 8: New Keppel is well positioned on our growth trajectory
New Keppel is well positioned on our growth trajectory Seizing opportunities from macrotrends We are meeting rising global demand for alternative real assets across infrastructure, 3 asset manager globally rd largest listed infrastructure 6 asset manager in APAC real estate and connectivity th large
Slide 9: Why invest in Keppel?
Why invest in Keppel? Our transformation is on track. We are in the right space, at the right time. Asset-heavy to asset-light Re-rating has begun • Accelerating FUM to fund growth opportunities • Full re-rating will happen as transformation Keppel: • Asset monetisation will enable co-investments co
Slide 10: The future is bright
The future is bright We will continue to build on Keppel’s unique value proposition as a global asset manager and operator to drive stronger returns for our Limited Partners and greater value for our shareholders © Keppel 10
Slide 11: Thank you
Thank you
Slide 12: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR
Slide 13: Keppel – a differentiated global real asset manager
Keppel – a differentiated global real asset manager Ms Christina Tan, CEO, Fund Management & CIO Investor Day, 20 August 2024
Slide 14: Favourable global macrotrends
Favourable global macrotrends Investors seek investment strategies and asset classes in sectors underpinned by resilient macrotrends Energy transition Rapid urbanisation Increasing digitalisation & climate change & ageing population Global annual energy transition investments Annual population of ur
Slide 15: Strategically positioned
Strategically positioned Investors are increasing allocation to real assets Keppel is in the right space, at the right time to seize opportunities Driven by the desire for portfolio diversification and the amidst the macrotrends pursuit of stable and predictable cash flows Leveraging Keppel’s operat
Slide 16: Bespoke investment solutions
01 Bespoke investment solutions 16
Slide 17: Accelerating FUM growth
Accelerating FUM growth Through organic and inorganic growth strategies, complemented by AI Funds under Management1 ($’b) >2x 200 Growth Drivers +55% 1 Scale existing flagship products Continued momentum 852 1 across FM&I platform 2 Focus on synergistic inorganic growth 55 2 3 Investments in new gro
Slide 18: Expanding global footprint
Expanding global footprint Strategic replication of win-win partnerships across the core pillars to strengthen Keppel’s market position Next phase of growth Cross-selling of funds Broadening of LP base for fund raising New fund investment opportunities Co-creating new and larger fund products and pl
Slide 19: Diverse offerings providing strong returns
Diverse offerings providing strong returns Customised offerings across a myriad of investment strategies that meet investors’ needs Debt Core Core + Value Add / Opportunistic Keppel Keppel Asia Keppel Keppel Core Keppel Education Private Credit KSURF Infrastructure Data Centre Infrastructure Fund As
Slide 20: The Keppel difference
02 The Keppel difference 20
Slide 21: Integrated platform
Integrated platform Keppel’s value proposition stems from our ability to leverage our deep operating expertise and domain knowledge to drive shareholder value and returns Rigorous Investment Cycle • Adding value with operating expertise • Raising capital and gathering assets • Driving superior asset
Slide 22: Case study: KAIF – differentiated value-add investment
Case study: KAIF – differentiated value-add investment Creating investable real assets through our flagship Keppel Asia Infrastructure Fund (KAIF) series Global Megatrend Opportunities The Keppel Advantage Keppel Proprietary Asset Global low-emission hydrogen Singapore’s carbon emission by Keppel’s
Slide 23: Case study: KSURF – brown-to-green solutions
Case study: KSURF – brown-to-green solutions Spearheading sustainable and innovative urban space solutions to build smarter cities of tomorrow Global Megatrend Opportunities The Keppel Advantage Keppel Proprietary Asset Carbon emissions from buildings in Carbon emission split from Keppel’s operating
Slide 24: Case study: KDCF – trusted and experienced manager
Case study: KDCF – trusted and experienced manager Meeting the exponential growth in bandwidth demand with connectivity solutions through our flagship Keppel Data Centre Fund (KDCF) series Global Megatrend Opportunities The Keppel Advantage Keppel Proprietary Asset Global data creation Technology ev
Slide 25: Keppel – the manager of choice
Keppel – the manager of choice We are connecting investors with strategic real assets across infrastructure, real estate and connectivity that produce strong inflation-protected cashflows amidst the volatile global environment. LP-first mindset and Differentiated value strong track record propositio
Slide 26: Thank you
Thank you
Slide 27: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR
Slide 28: Operating Platform presentations
Operating Platform presentations Investor Day, 20 August 2024
Slide 29: Infrastructure
Infrastructure Ms Cindy Lim, CEO, Infrastructure Investor Day, 20 August 2024
Slide 30: Integrated power business
01 Integrated power business 29
Slide 31: Stable growing demand, reduced market volatility
Stable growing demand, reduced market volatility Singapore’s electricity demand will continue to grow organically… Integrated Power Business 3.7% - 5.7% 1H 2023 1H 2024 Change Peak Demand CAGR1 ($’m) ($’m) (%) 11 GW Revenue 2,263 2,005 - 11% 8.3 GW EBITDA 315 356 + 13% Operating Income 261 317 + 21%
Slide 32: Competitive advantages capacity and margin expansion
Competitive advantages capacity and margin expansion Develop & Build Manage/ Operate Monetise 01 02 03 04 Asset Operational Recurring Capital Light Capability Operating Income Recycling Co-invested by KAIF, Origination, project Operations & Potential for future generating asset development, engineer
Slide 33: Future ready and resilient higher capacity with lower carbon intensity
Future ready and resilient higher capacity with lower carbon intensity Hydrogen-ready H-class CCGT +1.6 GW Zero-carbon power New generation capacity; doubling existing capacity 3.0 GW in next 5 years 2.0 GW 1.4 GW Existing CCGTs 2024 2026 2030 20% Reduction in carbon intensity 0.3661 0.358 0.294 thr
Slide 34: Strong margins in 2024 underpinned by robust portfolio
Strong margins in 2024 underpinned by robust portfolio >99% of our customers are locked in on fixed or indexed Diversified customer base electricity price plans, delivering healthy recurring revenue No more than 30% concentration in any one sector 60% of portfolio is on long-term contracts of With a
Slide 35: Decarbonisation & sustainability solutions
02 Decarbonisation & sustainability solutions 34
Slide 36: World class technology provider with global track record
World class technology provider with global track record China Bialystok, Poland 67 lines installed 372 TPD >20 projects c. 37,000 TPD of waste processing capacity First WTE in Poland Manchester, UK 2,330 TPD Hong Kong Number of projects 3,000 TPD 1-10 Largest WTE in UK 11-100 Mesaieed, Qatar First
Slide 37: Target markets and offerings
Target markets and offerings Strong pipeline of WTE in markets with existing WTE plants due for replacement Europe Technology Technical Plant Follow-up Life Solutions Services & Upgrade Extension Europe North/East Asia 51 Projects 25 Projects Huge replacement market potential MENA New build and repl
Slide 38: Capturing landmark EaaS projects and beachheads overseas
Capturing landmark EaaS projects and beachheads overseas Entry into China HDB Cooling-as-a-Service Largest deployment of ultrafast • Entered China with 11,000RT • 5,250RT designed capacity chargers at a single site in designed capacity for • Replicable in other precincts Southeast Asia Perennial Hol
Slide 39: Strong earnings growth from solutions and services riding the energy transition momentum
Strong earnings growth from solutions and services riding the energy transition momentum Recurring, steady cash flow over the next 10-15 years Actively developing low-carbon energy value chain Developing strong capabilities and $5.2b long-term contracts secured 2.5x EBITDA growth target partnerships
Slide 40: Thank you
Thank you
Slide 41: Real Estate
Real Estate Mr Louis Lim, CEO, Real Estate Investor Day, 20 August 2024
Slide 42: We see trends shaping the trajectory of asset values in Asia
We see trends shaping the trajectory of asset values in Asia Adaptive Re-use Live-work-play integration evolving in urban centres Sustainability Old buildings and precincts requiring a new, greener lease on life Senior Living Rising market for aging-well products and services Market Dynamics Opportu
Slide 43: Recent acquisitions leverage Keppel's SUR capabilities to drive sustainability performance and returns
Recent acquisitions leverage Keppel’s SUR capabilities to drive sustainability performance and returns The Asset Enhancement Initiatives in Inno88, Seoul, produced: 30% Decrease in energy consumption 27% Increase in gross floor area INNO88, SEOUL For One Paramount, Chennai, we are targeting to achie
Slide 44: Building on our experience and expertise to grow our urban renewal, urban solutions and retail platforms
Building on our experience and expertise to grow our urban renewal, urban solutions and retail platforms Sustainable Urban Renewal – Ngee Ann Polytechnic Retrofitting School of Design & Environment for net zero NGEE ANN POLYTECHNIC, SINGAPORE Urban Solutions – Joint Venture with Jinan Pioneer Provid
Slide 45: We opened our first award winning senior living asset in Asia
We opened our first award winning senior living asset in Asia SINDORA LIVING, Global iF Design Award (Germany) NANJING For the holistic transition programme to help elders assimilate to their new environment Gold Certification for Leadership in Energy and Environmental Design (United States) US Gree
Slide 46: Our real estate credentials and operating capabilities differentiate our real estate fund proposition
Our real estate credentials and operating capabilities differentiate our real estate fund proposition Debt Core Core+ Value Add Opportunistic K Private Credit Keppel Asia Macro China Logistics Keppel REIT Separate Accounts Fund Trends Fund Series Property Fund Keppel Pacific Oak Keppel Vietnam KSURF
Slide 47: Thank you
Thank you
Slide 48: Connectivity
Connectivity Mr Manjot Singh Mann, CEO, Connectivity & CEO, M1 Investor Day, 20 August 2024
Slide 49: Surging data demand driven by AI trends
Surging data demand driven by AI trends AI requirements on compute have been increasing by 10 times every two years since 2022, a trend forecasted to continue1 Rising AI market boosts hyperscale demand ~28% CAGR >10X ~ 100X Projected growth of AI in >50% Existing hyperscale demand for global DC capa
Slide 50: Fueling growth through strategic expansion
Fueling growth through strategic expansion Established footprint across 7 countries, and 4 new target markets in Asia Pacific and Europe; highly targeted approach focused on high growth markets with strong customer demand Our expansion strategies • Deepen foothold in existing markets United Kingdom
Slide 51: Creating sustainable DC campuses building on Keppel's ecosystem
Creating sustainable DC campuses building on Keppel’s ecosystem Infrastructure Real Estate Connectivity Renewable Energy Real Estate as Master Developer Data Centres • Wind energy, Laos-Thailand-Malaysia- • Premier real estate developer • Efficient operating model (end-to-end Singapore Power Integra
Slide 52: DataPark+
DataPark+ Redefining data centres through cutting-edge technology and sustainable, community-centric solutions aligned with Singapore’s Green DC Roadmap Singapore’s Green DC Roadmap Energy efficiency improvements • Tropical DC methodologies to reduce energy needed for air-cooling DataPark+: A scalab
Slide 53: Floating DC
Floating DC Designed to enable submarine cable connections directly between shoreside infrastructure and other regions; the design improves Power and Water Usage Effectiveness using technologies such as seawater cooling Design Development: In progress, working together with contractor and customer E
Slide 54: Bifrost Cable System
Bifrost Cable System Enabling data centres with the world’s largest capacity high-speed optical cable and subsea connectivity hub across the Pacific Ocean and beyond • Cable laying operations: >80% completed to-date, with completion expected by early 2025 • Main trunk targeted to be ready for servic
Slide 55: Digital connectivity solutions
Digital connectivity solutions B2B revenue 69% 11% Digital Platform successfully implemented 1H 1H 2021 2022 2023 1H24 Mobile & FBB Customers 100% Migrated 5G SA Network Enterprise Biz >99% coverage nationwide double digit growth From 200+ Databases Now 1 Data Lake 36 5G enterprise use cases deploye
Slide 56: Redefining digital infrastructure to enhance how we live, work and connect with one another
Redefining digital infrastructure to enhance how we live, work and connect with one another An integrated ecosystem that creates a seamless digital experience Data centres Bifrost Cable System Cloud native digital platform Enabling the future of AI through Providing global connectivity Empowering bu
Slide 57: Thank you
Thank you
Slide 58: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR