Keppel Ltd. · SGX:BN4
Keppel — Non-Deal Roadshow (June 2019)
23 slides from Keppel's roadshow presentation, Jun 25, 2019
Slide 1: Presentation to Investors
Presentation to Investors Kuala Lumpur 25 June 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: 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 4: 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 term ROE Project
Slide 5: Business Highlights
Business Highlights 5
Slide 6: Final Notice to Proceed to convert Golar's 2nd FLNG vessel, Gimi
In 2019, we received Final Notice to Proceed to convert Golar’s 2nd FLNG vessel, the Gimi, expanding our track record for gas solutions. In picture: Hilli Episeyo, the world’s first- of-its-kind converted FLNG vessel, is operating offshore Cameroon.
Slide 7: Positioned for Opportunities
Positioned for Opportunities Gas solutions gaining traction New orders • Received Final Notice to 1.7 1.8 Proceed for Gimi FLNG worth US$947m 0.7 0.6 Secured S$700m new contracts for 0.2 S$b Keppel O&M is well placed to seize offshore renewable sector 0.5 new opportunities in the oil & gas, • An off
Slide 8: Deepening presence in fast-growing cities across China and Vietnam
We will continue to deepen our presence in fast-growing cities across China and Vietnam, riding on strong demand for quality real estate. In picture: Empire City in the prime District 2 of Ho Chi Minh City, Vietnam
Slide 9: Focused on Returns
Focused on Returns Keppel Land aims to be a multi-faceted property company with one of the highest returns in Asia. Revalued NAV – Segment Residential landbank – Age Residential landbank – Units 69,170 65,547 63,022 Propety Investments Less than 5 49,992 40% years old 48,337 30% S$10.3bi ~48,000ii U
Slide 10: Developing and operating key infrastructure
We develop and operate key infrastructure spanning power, waste-to-energy, water and wastewater treatment and data centre assets. In picture: When completed in 2020, Keppel Marina East Desalination Plant will supply product water to Singapore’s PUB for 25 years. 10
Slide 11: Growing Data Centre Portfolio
Growing Data Centre Portfolio Data centre portfolio Net lettable area (sq ft) 22 data centres Spanning 14 cities in Asia-Pacific & Europe 1.7 mil 1.4 mil 1.4 mil ~S$2.7b 0.6 mil 0.9 mil Combined portfolio valuei of data centres completed and under development 2014 2015 2016 2017 2018 Data centre inn
Slide 12: Growing B2C Business
Growing B2C Business Telecommunications Gas Retail Privatisation of 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 100,000 Growing omnichannel solution offerings in Singapore and
Slide 13: M1's Transformation Journey
M1’s Transformation Journey Redefining consumer product offerings Redesigning customer experience Strategic Increasing focus on Enterprise segment transformation Improving operational efficiency Exploring future growth platforms Building on the complementarity Cross selling of services with the of c
Slide 14: Fuelling Growth Through Asset Management
Fuelling Growth Through Asset Management Keppel Capital aims to grow AUM to S$50b by 2022 from ~S$29b as at end-2018, connecting investors with high-quality real assets in sectors fuelled by urbanisation trends. • Fostering collaboration and ▪ Among SGX’s largest Pan-Asian Private Funds ▪ Manages pr
Slide 15: Developing smart cities of the future
We harness the Group’s capabilities and track record, and work with best-in-class technology partners to develop smart cities of the future. In picture: Saigon Sports City in Ho Chi Minh City, Vietnam is a collaboration between Keppel Land and Keppel Urban Solutions.
Slide 16: Appendix
Appendix 16
Slide 17: Financial Performance
Financial Performance Key highlights Net profit • Annualised ROE was 7.0% 337 • Free cash outflow of S$617m in S$1,531m 26 1Q 2019 vs inflow of S$248m 1Q 2019 revenue up 4% from S$1,470m for in 1Q 2018 1Q 2018 203 • Net gearing was 0.72x as at S$m 378 49 end-Mar 2019 vs 0.48x as at S$203m 16 132 6 e
Slide 18: Group ROE Target
Group ROE Target 15% Business Units Target ROE 2018 ROE ROE target for Keppel Corporation Keppel Offshore & Marine 15% n.m. Keppel Land 12% 11.4% Keppel Infrastructure 15% 17.2% 17.7% Keppel Data Centres 18% 12.6%i Annual average ROE over the Keppel Logistics 12% n.m. past decade (2009-2018) Keppel
Slide 19: Key Figures
Key Figures S$m FY 2018 FY 2017i % Change 1Q 2019 1Q 2018 % Change Revenue 5,965 5,964 - 1,531 1,470 4 Operating Profit 1,043 801 30 322 486 (34) Net Profit 944 815 16 203 337 (40) EPS (cents) 52.0 44.8 16 11.2 18.6 (40) Free Cash (Outflow)/Inflow 515 1,802 (71) (617) 248 n.m. Increase of Decrease A
Slide 20: Revenue by Segments
Revenue by Segments S$m FY 2018 % FY 2017 % 1Q 2019 % 1Q 2018 % Offshore & Marine 1,875 32 1,802 30 332 22 332 23 Property 1,340 22 1,782 30 357 23 543 37 Infrastructure 2,629 44 2,207 37 699 46 564 38 Investments 121 2 173 3 143 9 31 2 Total 5,965 100 5,964 100 1,531 100 1,470 100 20
Slide 21: Net Profit by Segments
Net Profit by Segments S$m FY 2018 % FY 2017i % 1Q 2019 % 1Q 2018 % Offshore & Marine (109) (11) (207) (25) 6 3 (23) (7) Property 938 99 650 80 132 65 378 112 Infrastructure 169 18 134 16 16 8 26 8 Investments (54) (6) 238 29 59 29 (44) (13) Less: Charges related to the - - - - (10) (5) - - acquisit
Slide 22: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,885 103.8 1,525 84.0 726 39.9 405 22.3 944 52.0 414 363 784 815 135 22.9 20.0 44.8 43.2 7.4 143 127 6.9 226 7.9 12.4 406 397 225 265 22.3 21.9 14.6 12.4 246 13.6 171 205 203 11.3 9.4 11.2 339 360 337 18.7 19.8 18.6 211 252 203 11.6 13.9 11.2 i i 1Q 2Q
Slide 23: ROE & Dividends
ROE & Dividends 19.5% 18.8% 14.2% 48 i 40 8.3% 34 6.9% 6.9% ii 30 20 22 iii 15 10 12 12 8 8 2013 2014 2015 2016 2017 2018 ROE Interim Dividend Full-Year Dividend i Includes dividend in specie of ~9.5cts/share ii Excludes one-off financial penalty from Keppel O&M’s global resolution with criminal aut