Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — H1 2021 Earnings Presentation
22 slides from Keppel Infrastructure Trust's earnings presentation, Jul 28, 2021
Slide 1: 1H 2021 Financial Results
1H 2021 Financial Results 28 July 2021
Slide 2: Outline
Outline Results Highlights 3 Business Updates 7 Finance and Capital Management 11 Additional Information 15 2
Slide 3: Results Highlights
Results Highlights Ixom
Slide 4: 1H 2021 Highlights
1H 2021 Highlights EBITDA of S$193.5m1 and FCFE2 of S$100.7m in 1H 2021 EBITDA1 decreased by 3.9% and FCFE down by 11.2% YoY due mainly to the under recovery of fuel cost at City Gas as a result of the timing differences in the fuel price pass through gas tariff mechanism Sustained stable DPU of 1.8
Slide 5: Focused on Growing FCFE
Focused on Growing FCFE FCFE and Payout Ratio Stable Distribution (cents) FCFE Payout 3.72 3.72 3.72 3.72 3.72 (S$m) Ratio (%) 250 1.86 1.86 1.86 1.86 1.86 225.7 100 200 188.7 80 1.86 1.86 1.86 1.86 1.86 1.86 149.5 144.2 150 141.2 60 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 1H 2021 100.7 1H 2H 100 40
Slide 6: 100% ownership in the SingSpring Desalination Plant
100% ownership in the SingSpring Desalination Plant ▪ Acquiring the remaining 30% stake in the SingSpring Desalination Plant ▪ DPU-accretive acquisition that offers KIT attractive risk-adjusted returns ▪ Enhance the operational and business continuity of the asset, as well as strengthen the asset’s
Slide 7: Business Updates
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Slide 8: Business Updates - Distribution & Network
Business Updates - Distribution & Network City Gas Operational Cash Flows (OCF) (S$m) ▪ Customer base grew 1.3% YoY to 873,000 as at end-Jun 2021 ▪ Residential consumption of town gas remains healthy while Commercial & Industrial consumption remains 68.4 (9)% below pre COVID-19 levels 62.2 ▪ OCF was
Slide 9: Business Updates - Energy and Waste & Water
Business Updates - Energy and Waste & Water Operational Cash Flows (OCF) (S$m) Keppel Merlimau Cogen Plant Energy ▪ Achieved 100% contracted availability in 1H 2021 compared to 97.9% in 1H 2020 8% 23.4 21.6 ▪ KMC has no tariff exposure to the Singapore wholesale electricity market and has no exposur
Slide 10: Portfolio Breakdown
Portfolio Breakdown By Businesses and Assets (%) By Geography (%) As at 30 Jun 2021 As at 30 Jun 2021 20.7 Waste 11.7 & Water 7.7 41.9 54.3 S$5.2 billion 16.9 Distribution S$5.2 billion & Network 14.2 Energy 3.8 25.0 3.8 City Gas Basslink Singapore Philippines Australia, New Zealand and other countr
Slide 11: Finance and Capital Management
Finance and Capital Management SingSpring Desalination Plant
Slide 12: Free Cash Flow to Equity
Free Cash Flow to Equity 1H 2021 1H 2020 +/(-) S$’000 S$’000 % Distribution & Network 62,208 68,437 (9.1) City Gas 19,723 29,011 (32.0) Ixom 38,723 39,426 (1.8) Philippine Coastal 3,762 - 100.0 Energy 23,367 21,607 8.1 Waste & Water 35,945 36,219 (0.8) Operational Cash Flows 121,520 126,263 (3.8) KI
Slide 13: Balance Sheet and Capital Management
Balance Sheet and Capital Management ▪ Upsized Multicurrency Debt Issuance Programme from Debt Repayment Profile Debt Breakdown by Currency S$1b to S$2b > 5 yr 15.8% < 1 yr ̶ Issued S$300m perpetual securities (classified as equity) 35.0% to refinance borrowings, fund potential acquisitions and asse
Slide 14: Thank You
Thank You www.kepinfratrust.com Ulu Pandan NEWater Plant
Slide 15: Additional Information
Additional Information Tuas WTE Plant
Slide 16: Three-pronged Strategy for Long-term Value Creation
Three-pronged Strategy for Long-term Value Creation Value Creation Operational Excellence Focused Acquisition • Generate and grow cash flows from KIT’s well- • Achieve operational excellence • Seek leading businesses and assets diversified portfolio of businesses and assets and asset optimisation to
Slide 17: Driving Sustainable Growth
Driving Sustainable Growth KIT’s strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distributions and capital growth over the long term Anchored By a growing portfolio of strategic businesses and assets across a broad range of highly defensive ind
Slide 18: 1H 2021: Free Cash Flow to Equity
1H 2021: Free Cash Flow to Equity Philippine Waste & KIT and S$'000 City Gas Basslink Ixom KM C Group Coastal Water Holdco1 Profit/ (loss) attributable to unitholders 7,937 (19,084) 4,438 (251) (17,580) (1,553) 23,141 (2,952) Adjustments for non- cash items: Depreciation and amortisation 1,781 9,147
Slide 19: 1H 2020: Free Cash Flow to Equity
1H 2020: Free Cash Flow to Equity Waste & KIT and S$'000 City Gas Basslink Ixom KM C Group Water Holdco Profit/ (loss) attributable to unitholders 13,735 4,316 15,343 (19,551) (908) 32,245 45,180 Adjustments for non- cash items: Depreciation and amortisation 1,888 7,976 35,452 19,704 3,127 - 68,147
Slide 20: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL RESPONSIBLE PEOPLE AND STEWARDSHIP BUSINESS COMMUNITY We will do our part to combat climate change The long-term sustainability of our business is People are the cornerstone of our business. We and are committed to improving resource driven at the highest l
Slide 21: Portfolio Overview
Portfolio Overview Description Customer and contract terms Primary source of cash flows City Gas Fixed margin per unit of gas sold, Sole producer and retailer of piped town gas Over 860,000 commercial and residential customers with fuel and electricity costs passed through Singapore to consumer Dist
Slide 22: 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
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