Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (November 2016)
20 slides from Keppel Infrastructure Trust's investor presentation, November 2016
Slide 1: Investor Presentation
Investor Presentation November 2016
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 Largest Singapore focused infrastructure business trust Market Value (1) Generates long-term, regular and predictable cash flows Market Capitalisation S$ 1,929 m from a diversified portfolio of core infrastructure assets: Enterprise Value S$ 3,423 m So
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) S cents/unit 2.5 3Q FY16: 0.93 Singapore cents 1.98 Book closure date: 25 October 2016 2 Distribution Payment date: 18 November 2016 1.5 1.05 1 0.93 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 1QFY14 2QFY14 3QFY14 4QFY14 Pre Combin
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 9M FY16 EBITDA (1) Total Assets as at 30 Sep 2016 (2) Corporate KMC 7% 28% (2) KMC 28%
Slide 8: Strong Balance Sheet
4 Strong Balance Sheet As at 30 September 2016 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 259 208 between 2024 and 2046 Borrowings 1,753 1,040 Creditworthy customers and City Gas’ large and stable Net debt 1,494 832 customer base Recurring and stabl
Slide 9: Three-pronged Growth Strategy
5 Three-pronged Growth Strategy 1 Organic Growth from Existing Portfolio 2 Keppel Sponsorship 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 Upsi
Slide 10: Attractive Risk Adjusted Returns
6 Attractive Risk Adjusted Returns Distribution Yield (1) Infrastructure trusts Singapore Industrial REITs 14.7% Average: 8.4% Average: 7.5% 11.1% 9.8% 9.4% 9.0% 8.1% 8.2% 7.4% 6.9% 6.8% 6.4% 6.3% 6.4% 5.1% 5.4% 4.2% Accordia Golf Ascendas India Asia Pay Croesus Retail Hutchison Port Keppel AIMS AMP
Slide 11: Regular and Stable Returns
2 Regular and Stable Returns Attractive Yield Keppel Infrastructure Keppel Infrastructure Trust Trust 7.4% SG Govt 10-Year Bond 1.8% SG Govt 15-Year Bond 2.0% SG Govt 20-Year Bond 2.1% S&P Asia Infra Index 2.7% FTSE ST Utilities Index 3.9% Dow Jones/Asia Pacific Utilities Index 2.8% FTSE Global Core
Slide 12: Key Investment Highlights
Key Investment Highlights KIT is well-positioned to deliver long-term value and growth to Unitholders. 1 Large & well-diversified portfolio of core infrastructure assets 2 Generates long-term predictable cash flows uncorrelated to GDP supporting stable and regular distributions 3 Diversified portfol
Slide 13: Additional Information
Additional Information (Eee) Infrastructure Trust 12
Slide 14: KIT's shareholding structure
KIT’s shareholding structure • Keppel Corporation completed the consolidation of its asset management businesses under Keppel Capital in July 2016 • This includes a 100% interest in Keppel Infrastructure Fund Management (KIFM), the Trustee-Manager of KIT • KIFM will be able to leverage the scale and
Slide 15: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure’s Pipeline [] Keppel Merlimau Cogen (KMC) - 49% through Keppel Energy Operational since 2007, with a total generation capacity of 1,300 MW KI, as the sponsor of KIT, owns 49% shareholding in KMC through Keppel Energy Changi Business Park - 100% throu
Slide 16: 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 17: KIFM Management Fee Structure
KIFM Management Fee Structure Management Fee • S$2.2 million per annum • Inflation adjustment in reference to the CPIS Performance Fee • 4.5% p.a. of sum of cash flow received by KIT Acquisition Fee • 0.5% of the Enterprise Value of any investment acquired, where the investment is acquired from: − S
Slide 18: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 73.6 Oct 2024 Amortising Basslink 722.0 Nov 2019 Amortising* (A$708.5) KMC 700.0 Jun 2020 Bullet* KIT 91.5 Feb 2019 Bullet* * To be refinanced upon maturity 17
Slide 19: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~85% of total loans Debt Repayment Profile • 100% non-recourse loans > 5 yrs < 1 yr 1.5% 2.1% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Healthy weighted average term to expiry of ~3.
Slide 20: Thank You
Thank You www.kepinfratrust.com 19
Keppel Infrastructure Trust — Investor Presentation (November 2016) on 6ix