Keppel Ltd. · SGX:BN4
Keppel — Investor Day (May 2020)
28 slides from Keppel's investor day presentation, May 28, 2020
Slide 1: Vision 2030 Briefing to Analysts
VISION 2030 28 MAY 2020 BRIEFING TO ANALYSTS
Slide 2: Topics
Topics Vision 2030: Overview Macrotrends Vision 2030: 4 Key Elements Mission & Business Model Where to Play How to Win Capital Allocation Appendix: Enhancing Disclosures
Slide 3: Vision 2030
Vision 2030 Charting Keppel's future as ONE integrated business providing solutions for sustainable urbanisation. Growth Discipline Sustainability Accelerate growth as one Inject greater focus and Place sustainability at core of discipline in managing strategy in Building a integrated business busin
Slide 4: Keppel has evolved significantly over the years
Keppel has evolved significantly over the years Various shipyard entities 2002: Integration into Keppel O&M Keppel O&M Straits Steamship Land Keppel Land 2014: Privatisation of Keppel Land Keppel Land Various infrastructure businesses 2013: Integration into Keppel Infrastructure Keppel Infrastructur
Slide 5: Macrotrends
Rapid urbanisation Energy transition Macrotrends Addressing relevant long-term trends over the next decade Technology proliferation Power of platforms Ageing populations Super liquidity 5 Keppel Corporation Limited
Slide 6: Disruptions & opportunities
The Post COVID-19 World • Different ways to live, work, learn and play • Embracing the virtual experience economy • Rising demand for connectivity and digital Disruptions & infrastructure opportunities • Enhancing supply chain resilience • Shifting energy trends Leveraging the Group’s capabilities,
Slide 7: Vision 2030: 4 key elements
Vision 2030: 4 key elements 1 2 Mission & Where to play business model Refocused portfolio 3 4 How to win Capital allocation ONEKeppel approach 7 Keppel Corporation Limited
Slide 8: Mission & Business Model
Mission & Business Model 8 Keppel Corporation Limited
Slide 9: Vision, Mission & Strengths
VISION A trusted global company building a sustainable future. Vision, MISSION Mission & We deliver solutions for sustainable urbanisation safely, responsibly and profitably. Strengths STRENGTHS & DIFFERENTIATORS • Engineering track record • Project management • Efficiency in capital allocation • Fo
Slide 10: Track record in engineering and project management
Track record in engineering and project management OFFSHORE & MARINE URBAN SOLUTIONS CONNECTIVITY 10 Keppel Corporation Limited
Slide 11: The Keppel Difference
An integrated business, functioning as an eco-system of companies, providing end-to-end solutions for sustainable urbanisation The Operate & Stabilise & REITs & Trust Keppel Maintain Monetise Difference Design & Build EPC/For Sale Development for Sale Recurring Income Capital Recycling - Sale of equ
Slide 12: Business model yielding results, as seen in data centre business
Business model yielding results, as seen in data centre business Operate & Stabilise & REITs & Trust Maintain Monetise Design & Build EPC/For Sale Earnings over the past 6 years $500m* $1,015m $515m Earnings comprise: Earnings comprise: • Profits from data centre development and management, includin
Slide 13: Sustainability at the core of our strategy
Sustainability at the core of our strategy Make sustainability our Refocus our portfolio on business sustainable urban solutions • Seize opportunities in green Guide our portfolio towards developments, renewables, new sustainable solutions through: energy and circular economy • Climate risk assessme
Slide 14: Where to Play
Where to Play 14 Keppel Corporation Limited
Slide 15: Redefining Keppel's Divisions
Redefining Keppel’s Divisions ENERGY & URBAN ENVIRONMENT DEVELOPMENT CONNECTIVITY Keppel O&M Keppel M1 Keppel Data Offshore & Marine Infrastructure Keppel Keppel Land Keppel Urban Solutions Centres Keppel Renewable Energy Sino-Singapore Tianjin Logistics KrisEnergy Eco-City Property De
Slide 16: Disciplined approach to managing our business
Fit with Potential for Returns Vision, Scalability integration Mission & & synergy Disciplined ESG Goals approach to Ability to Potential to be Reinforces our Alignment with achieve target a meaningful ability to ‘Hunt ‘Sustainable managing ROE over the long term contributor to the Group as a Pack’
Slide 17: Actively develop and invest in new growth engines
Actively develop and invest in new growth engines Engine Engine Engine 1 Existing core businesses we continue to build 2 New businesses we will actively grow 3 New potential areas of growth we are evaluating Examples: Examples: Examples: Waste to Energy Offshore Infrastructure Hydrogen Wave En
Slide 18: How to Win
How to Win 18 Keppel Corporation Limited
Slide 19: Integrated OneKeppel
Integrated OneKeppel Building Group Harnessing the Consolidating Actively platforms to unique strengths common shared driving inter-BU support new of all BUs through services & support cross-selling growth engines BU+ Integration Incubate new Extend and enhance Sharing of common Prevent leakages of
Slide 20: Growth supported by scaling up asset management arm
Growth supported by scaling up asset management arm DEVELOPER OPERATOR MANAGER PROPRIETARY DEAL FLOW Components of a strong value Asset creation + Operational expertise + Track record in public & private COST EFFICIENCIES & SYNERGY proposition markets EVERGREEN CAPITAL CREATION Existing real asset d
Slide 21: Growth driven by advanced technologies & digitalisation
Growth driven by advanced technologies & digitalisation ENERGY & URBAN ASSET CONNECTIVITY ENVIRONMENT DEVELOPMENT MANAGEMENT Offshore renewables Smart City Energy optimised DCs Forecasting analytics Energy storage AssetCare Smart Building Digital first telco MVNE Platform analysis
Slide 22: People, our key asset
People, our key asset The spirit and tenacity of our talents will stand us in good stead to achieve our targets and ambitions, propelling Keppel as a leading solutions provider for sustainable urbanisation. 22 Keppel Corporation Limited
Slide 23: Capital Allocation
Capital Allocation 23 Keppel Corporation Limited
Slide 24: Allocation by segment
we are not showing numbers what we are not showing numbers what we are not showing numbers what Guided by our targets & capital allocation principles ROE TARGET CAPITAL ALLOCATION Increase focus on Increase focus on Accelerate Activate landbank 15% gas value chain, integrated projects deployment in
Slide 25: Future Keppel
Future Keppel Global Leader Sustainable Company Creator of low-carbon smart cities, ESG leader with businesses and powerhouse of end-to-end advancing the sustainability agenda solutions for sustainable urbanisation High-Return Stock Community Champion 15% ROE, with good dividends and Builder of vibr
Slide 26: Appendix: Enhancing Disclosures
Appendix Enhancing Disclosures 26 Keppel Corporation Limited
Slide 27: Greater clarity in disclosure of earnings
Greater clarity in disclosure of earnings Energy & Environment Urban Development Connectivity Asset Management • Repairs & conversions • Rental income from • M1 • Keppel Capital • Keppel O&M associates in Investment Properties • Data Centres (DCs) • Share of profit from KREIT, charter business • Hos
Slide 28: Pro forma FY 2019 net profit based on new segments
Pro forma FY 2019 net profit based on new segments Current ($m) Offshore & Marine Property Infrastructure Investments Total % Recurring Income (26) 45 108 134 260 37% Project Based 76 237 27 - 340 48% Investment & Others - 24 (23) (178) (176) (25%) RID (40) 211 57 55 283 40% Net Profit 10 517 169 11