Slide 1: 2H & FY 2020 Financial Results
2H & FY 2020 Financial Results 28 January 2021
Slide 2: Scope of Briefing
Scope of Briefing • Address by CEO • Group Financial Highlights by CFO 2
Slide 3: Address by CEO
Address by CEO 3
Slide 4: Executing Vision 2030
Executing Vision 2030 Achieved good progress on our 100-day plan launched at end-Sep 2020, and will continue to accelerate execution of Vision 2030 to create value. Transformation office 100day plan • Established to drive the Group’s transformation and • Announced >S$1.2b of divestments since Oct 2
Slide 5: Strategic Review of Keppel O&M
Strategic Review of Keppel O&M • Keppel O&M will undergo bold transformation to ensure that it is relevant, competitive and well-placed to support the global energy transition. • Keppel will concurrently continue to explore inorganic options. ORGANIC RESTRUCTURING Keppel O&M Separating construction
Slide 6: Strategic Review of Keppel O&M
Strategic Review of Keppel O&M We aim to create a nimble industry leader that is well-positioned for the global energy transition. Operating Company will seek opportunities in floating Gas Renewables New Energy infrastructure and infrastructure-like projects, and collaborate with other Keppel busine
Slide 7: Strategic Review of Logistics Business
Strategic Review of Logistics Business Keppel T&T has completed the strategic review and is currently engaging potential buyers through a competitive bidding process. • Rising demand for e-commerce accelerated by COVID-19 pandemic: • Logistics business benefited from increased demand for e-commerce
Slide 8: Group Performance
Group Performance • Net loss was S$506m for FY 2020, vs net profit of S$707m for Net Profit by Segment FY 2019 707 • FY 2020 net loss includes S$952m of impairments, mainly 214 from the Offshore & Marine business 280 S$m 136 13 • All key business units were profitable in FY 2020, except 483 438 for
Slide 9: Multiple Income Streams
Multiple Income Streams As part of Vision 2030, the Group will focus on improving earnings quality with more recurring income Net Profit by Income Type 707 103 229 Recurring Income S$m 369 111 112 EPC/Development for Sale 79 260 220 0 Revaluation (254) Profit from Capital Recycling (1,028) Corporate
Slide 10: Energy & Environment
Energy & Environment Energy & Environment Net Profit • Energy & Environment segment recorded net loss of S$1,181m for FY 2020, due mainly to losses in the Offshore & Marine business 129 0 10 144 • Keppel O&M’s net loss was S$1,194m for FY 2020, due mainly to: (240) (101) • Significant impairments re
Slide 11: Energy & Environment
Energy & Environment • Keppel Infrastructure’s FY 2020 contributioni grew 12% yoy to S$144m, while FY 2020 EBITDA was S$165m, underpinned by improved performance in Energy Infrastructure and Environmental Infrastructure businesses • Keppel Infrastructure secured S$2.1bii worth of WTE and district co
Slide 12: Urban Development
Urban Development • Urban Development segment recorded net profit of S$438m Urban Development Net Profit for FY 2020 • Keppel Land’s contributioni of S$406m for FY 2020 was 10% 483 lower yoy mainly due to absence of tax write-backs 438 38 • 53% of contribution from property trading and 47% from 67 K
Slide 13: Urban Development
Urban Development • Keppel Land’s home sales: Home Salesi • Singapore home sales picked up, mainly at The Garden Residences Sales value: • Home sales were slower in China due to economic headwinds and S$3.2b Sales value: fewer new projects launched S$2.5b 5,150 • Lower home sales in Vietnam due to s
Slide 14: Connectivity
Connectivity Connectivity Net Profit • Connectivity segment recorded net profit of S$13m for FY 2020 136 • Keppel Data Centres’ contributioni was negative S$12m 78 for FY 2020, vs positive S$11m for FY 2019, mainly due S$m to absence of divestment gain as compared to 2019 13 • S$74m in contributions
Slide 15: Connectivity
Connectivity • M1’s contributioni of S$65m was 11% lower yoy due to COVID-19 impact on roaming and prepaid revenue, while EBITDA was relatively resilient at S$264m for FY 2020 • Second largest in Singapore by postpaid customer base and postpaid revenueii • M1’s transformation progressing well: • M1
Slide 16: Asset Management
Asset Management • Asset Management segment’s net profit grew 31% yoy to Asset Management Net Profit S$280m for FY 2020 280 • Keppel Capital’s contributioni grew 6% yoy to S$85m for 2 FY 2020 mainly due to gains from divestments 214 • Asset management feesii were S$165m for FY 2020, vs 64 193 S$149m
Slide 17: Asset Management
Asset Management AUM as at End-2020 • Keppel Capital grew its AUM by 12% to reach S$37bi as at end-2020 Alternative assetsii • Raised total equity of ~S$4.5b in 2020 16% • Launched and achieved first close for several funds for real estate assets, data centres, infrastructure, education, logistics a
Slide 18: We will continue to advance towards Vision 2030
We will continue to advance towards Vision 2030, creating value and building a sustainable future for all our stakeholders. 18 Artist’s impression of Bulim district cooling system plant in Jurong Innovation District, Singapore
Slide 19: Group Financial Highlights by CFO
Group Financial Highlights by CFO 19
Slide 20: 2H 2020 Financial Performance
2H 2020 Financial Performance Key highlights S$m 2H 2020 2H 2019 % Change Revenue 3,392 4,265 (20) Net Profit ↑ from S$351m to S$31m EBITDA 370 601 (38) EPS ↑ from 19.3cts to 1.7cts Operating Profit 157 395 (60) Profit Before Tax 102 465 (78) Net Profit 31 351 (91) EPS (cents) 1.7 19.3 (91) 20
Slide 21: 2H 2020 Revenue by Segment
2H 2020 Revenue by Segment S$m 2H 2020 % 2H 2019 % % Change Energy & Environment 1,919 57 2,818 66 (32) Urban Development 764 22 708 17 8 Connectivity 633 19 665 15 (5) Asset Management 75 2 73 2 3 Subtotal 3,391 100 4,264 100 (20) Corporate & Others 1 - 1 - - Total 3,392 100 4,265 100 (20) 21
Slide 22: 2H 2020 Pre-tax Profit by Segment
2H 2020 Pre-tax Profit by Segment S$m 2H 2020 2H 2019 % Change Energy & Environment (309) (54) 472 Urban Development 373 384 (3) Connectivity 16 35 (54) Asset Management 34 123 (72) Subtotal 114 488 (77) Corporate & Others (12) (23) (48) Total 102 465 (78) 22
Slide 23: 2H 2020 Net Profit by Segment
2H 2020 Net Profit by Segment S$m 2H 2020 2H 2019 % Change Energy & Environment (223) (31) >500 Urban Development 223 275 (19) Connectivity 13 18 (28) Asset Management 22 109 (80) Subtotal 35 371 (91) Corporate & Others (4) (20) (80) Total 31 351 (91) 23
Slide 24: FY 2020 Financial Performance
FY 2020 Financial Performance Key highlights S$m FY 2020 FY 2019 % Change Net Profit ↑ from net profit of S$707m to net loss of S$506m Revenue 6,574 7,580 (13) ROE ↑ from 6.3% to negative EBITDA 422 1,252 (66) 4.6% Operating Profit 8 877 (99) Free Cash ↑ from outflow of S$653m Flow to inflow of S$49
Slide 25: FY 2020 Revenue by Segment
FY 2020 Revenue by Segment S$m FY 2020 % FY 2019 % % Change Energy & Environment 3,943 60 4,969 66 (21) Urban Development 1,275 19 1,336 18 (5) Connectivity 1,220 19 1,128 15 8 Asset Management 135 2 145 1 (7) Subtotal 6,573 100 7,578 100 (13) Corporate & Others 1 - 2 - (50) Total 6,574 100 7,580 10
Slide 26: FY 2020 Pre-tax Profit by Segment
FY 2020 Pre-tax Profit by Segment S$m FY 2020 FY 2019 % Change Energy & Environment (1,251) (121) >500 Urban Development 720 676 7 Connectivity 29 196 (85) Asset Management 304 239 27 Subtotal (198) 990 n.m.f. Corporate & Others (57) (36) 58 Total (255) 954 n.m.f. n.m.f. denotes No Meaningful Figure
Slide 27: FY 2020 Net Profit by Segment
FY 2020 Net Profit by Segment S$m FY 2020 FY 2019 % Change Energy & Environment (1,181) (101) >500 Urban Development 438 483 (9) Connectivity 13 136 (90) Asset Management 280 214 31 Subtotal (450) 732 n.m.f. Corporate & Others (56) (25) 124 Total (506) 707 n.m.f. n.m.f. denotes No Meaningful Figure
Slide 28: FY 2020 Impairments
FY 2020 Impairments S$m FY 2020 FY 2019 Doubtful debt on receivables in O&M business (184) - Contract assets in O&M business (358) - Stocks in O&M business (42) - Fixed assets and right-of-use assets, and share of impairment (24) (4) from associated companies in O&M business Intangible assets in O&M
Slide 29: FY 2020 Financial Performance (excluding impairments)
FY 2020 Financial Performance (excluding impairments) Key highlights Net Profit ↑ from S$828m to S$446m S$m FY 2020 FY 2019 % Change ROE ↑ from 7.3% to 3.9% Revenue 6,574 7,580 (13) EBITDA 1,221 1,351 (10) Operating Profit 807 976 (17) Profit Before Tax 775 1,077 (28) Net Profit 446 828 (46) EPS (ce
Slide 30: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,525 84.0 405 22.3 948 52.3 363 784 815 20.0 43.2 44.8 7.5 135 707 38.9 127 7.9 6.9 12.5 143 227 192 21.9 14.6 10.5 397 225 265 12.4 249 159 13.7 8.8 205 171 11.3 9.4 8.4 153 360 337 31 19.8 13.9 18.6 211 252 203 11.6 11.2 1.7 (29.5) (537) (27.8) (506)
Slide 31: ROE & Dividend
ROE & Dividend 14.2% i 8.4% 6.9% 6.9% 6.3% 34 30 20 22 20 12 15 ii 10 8 8 8 3 2015 2016 2017 2018 2019 2020 (4.6%) 2015 2016 2017 2018 2019 2020 ROE Interim Dividend Full-Year Dividend i Excludes one-off financial penalty from global resolution & related costs ii Includes special cash dividend of 5.
Slide 32: Free Cash Flow
Free Cash Flow S$m FY 2020 FY 2019 Operating profit 8 877 Depreciation & other non-cash items 30 117 Provisions made for stocks, contract assets and doubtful debts 701 39 Working capital changes (107) (1,476) Interest & tax paid (430) (382) Net cash from/(used in) operating activities 202 (825) Inve
Slide 33: Questions & Answers
Questions & Answers [TT Corporation 33 ff
Slide 34: Additional Information
Additional Information [EEE Corporation 34
Slide 35: Divestments Announced As Part Of 100-day Plan
Divestments Announced As Part Of 100-day Plan Asset Monetisation Aggregate Consideration No Announced >S$1.2b of divestments (S$m) 1 Taicang Xuchang Property 104.0 2 Business Online Public Company 36.0 3 Chengdu Hilltop Development 250.4 4 30% stake in Dong Nai Waterfront City 115.9 5 Keppel Bay Tow
Slide 36: Vision 2030 Segments & Income Streams
Vision 2030 Segments & Income Streams 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 • Hospita
Slide 37: Revenue by Geography
Revenue by Geography • 41% of total revenue came from overseas customers Singapore Total Overseas Customers FY 2020 Customers (S$m) (%) (%) Energy & Environment 3,943 39 61 Urban Development 1,275 86 14 Connectivity 1,220 2 98 Asset Management 135 12 88 Subtotal 6,573 41 59 Corporate & Others 1 86 1
Slide 38: EBITDA by Segment
EBITDA by Segment S$m FY 2020 % FY 2019 % % Change Energy & Environment (671) (159) 268 21 n.m.f. Urban Development 645 153 545 44 18 Connectivity 259 61 385 31 (33) Asset Management 276 66 123 10 124 Subtotal 509 121 1,321 106 (61) Corporate & Others (87) (21) (69) (6) 26 Total 422 100 1,252 100 (6
Slide 39: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 31 Dec 2020 31 Dec 2019 Shareholders’ Funds 10,728 11,211 Total Equity 11,156 11,646 Net Debt i 10,123 9,874 i Net Gearing Ratio 0.91x 0.85x ROE (4.6%) 6.3% i Net debt and net gearing ratio included lease liabilities 39
Slide 40: Net Profit by Business Unit
Net Profit by Business Unit S$m 2H 2020 2H 2019 % Change FY 2020 FY 2019 % Change Keppel Offshore & Marine (235) - n.m.f. (1,194) 10 n.m.f. Keppel Infrastructure 88 77 14 294 133 121 Keppel Land i 153 269 (43) 370 527 (30) Share of SSTEC’s results 38 49 (22) 67 38 76 Keppel Telecommunications & 31 3
Slide 41: Net Profit by Business Unit
Net Profit by Business Unit Keppel KCL, SSTEC, Keppel Keppel Keppel S$m Offshore & Keppel Land M1 Others & Infrastructure T&T Capital Marine Elimination Net Profit by BU (1,194) 294 370 82 65 76 (199) • Share of SSTEC’s results - - 67 - - - (67) • REITs & Trust - (150) 39 (73) - 193 (9) • Private Fu
Slide 42: Energy & Environment
Energy & Environment [EEE Corporation 24
Slide 43: Financial Highlights – Energy & Environment
Financial Highlights – Energy & Environment S$m 2H 2020 2H 2019 % Change FY 2020 FY 2019 % Change Revenue 1,919 2,818 (32) 3,943 4,969 (21) EBITDA (114) 173 n.m.f. (671) 268 n.m.f. Operating (Loss)/Profit (189) 92 n.m.f. (822) 116 n.m.f. Loss Before Tax (309) (54) 472 (1,251) (121) >500 Net Loss (22
Slide 44: Keppel O&M’s Operational Review
Keppel O&M’s Operational Review Net Orderbooki • Secured ~S$1.0b of new orders in FY 2020: • A wind turbine installation vessel, fabrication of leg component for an offshore wind turbine 4.4 installation vessel, 3 FPSO topside fabrication 0.7 & integration, an FSRU conversion, and a 3.3 trailing suc
Slide 45: Keppel O&M’s Orderbook
Keppel O&M’s Orderbook Contract Value S$m Gross Net Client For delivery in 2021 Clearwater/Fecon/TS Offshore 5 JUs/1 Semi*/3 FPSO Modules Fabrication & Integration*/1 /Petrobras/Modec/*Name withheld /Ørsted FPSO Topside Integration*/2 FPSO Topside Fabrication & /Van Oord/Stolt-Nielsen/Shturman Integ
Slide 46: Urban Development
Urban Development [EEE Corporation 46
Slide 47: Financial Highlights - Urban Development
Financial Highlights - Urban Development S$m 2H 2020 2H 2019 % Change FY 2020 FY 2019 % Change Revenue 764 708 8 1,275 1,336 (5) EBITDA 336 253 33 645 545 18 Operating Profit 314 236 33 605 507 19 Profit Before Tax 373 384 (3) 720 676 7 Net Profit 223 275 (19) 438 483 (9) 47
Slide 48: Sales Achieved - Overseas
Sales Achieved - Overseas Units Sold in Sales Value in Latest Key Projects Location FY 2020 FY 2020 Avg. Selling Price China (RMB’m) (RMB’psm) City Park Chengdu 99 296 ~22,100 Waterfront Residences 330 1,188 ~24,000 Park Avenue Heights Wuxi 437 892 ~17,300 Seasons Residences 568 1,484 ~20,600 China
Slide 49: Residential Landbank - Singapore
Residential Landbank - Singapore Remaining Remaining Total GFA Total Units Units Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Launched Projects The Garden Residences 60% 99-yr 462,561 613 613 568 45 52,771 Corals at Keppel Bay* 100% 99-yr 509,998 366 366 319 47 110,900 Ref
Slide 50: Residential Landbank - China
Residential Landbank - China Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) 8 Park Avenue 99% 131,957 918 918 911 7 2,218 Seasons Residences 100% 125,552 1,185 1,185 1,143 42 5,147 Shanghai Sheshan Riviera 99.4% 90,109 217 11
Slide 51: Residential Landbank - Other Overseas
Residential Landbank - Other Overseas Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Vietnam Saigon Sports City 100% 780,878 4,261 - - 4,261 453,768 Palm City 42% 492,471 3,043 1,587 1,529 1,514 151,087 Empire City HCMC 40% 6
Slide 52: Residential Launch Readiness – China
Residential Launch Readiness – China Units Ready to Launch Project Location 2021 2022 2023 8 Park Avenue 7 - - Seasons Residences Shanghai 42 - - Sheshan Riviera 21 22 - Serenity Villas Chengdu 187 180 179 Waterfront Residences 12 56 - Park Avenue Heights Wuxi 168 - - Seasons Residences 1,064 931 -
Slide 53: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas Units Ready to Launch Project Location 2021 2022 2023 Vietnam Saigon Sports City Velona 714 360 117 Natura - 768 384 Lumina - - 444 Riviera Point ^ The Infiniti 38 - - Palm City Palm Garden 58 - - Palm Spring HCMC - 487 - Empire City Cove Residences 1 -
Slide 54: Expected Completion for Launched Projects
Expected Completion for Launched Projects Total Units Launched as Units Sold as at end-Dec Units Remaining Projects/Phases Launched Location Expected Completion Units at end-Dec 2020 2020 as at end-Dec 2020 China Seasons Residences (Ph 3B) 346 346 346 - 1H2021 Tianjin Waterfront Residences II 572 28
Slide 55: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects No. of Units Expected to be Completed Projects/Phases to be launched Location 2021 2022 2023 China Sheshan Riviera 105 - - Shanghai Upview - 1,566 - Serenity Villas Chengdu - 180 239 Waterfront Residences 56 - - Wuxi Seasons Residences 714 1,078 - Hill Crest
Slide 56: Commercial Projects - Under Development
Commercial Projects - Under Development Expected Projects under Development Location Stake GFA (sm) Development Cost ^ Completion Singapore Keppel Towers Singapore 100% 59,200 TBC 2024 China Park Avenue Central Shanghai 99% 113,220 RMB 3.8b 2023 Seasons City Tianjin 100% 162,450 RMB 2.6b 2021 Vietna
Slide 57: Commercial Projects - Completed
Commercial Projects - Completed Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore Keppel Bay Tower 100% 41,910 35,920 2002 Singapore I12 Katong 100% 26,210 19,640 2011 * China Trinity Tower 30% 70,000 48,600 2015 International Bund Gateway 29.8% 74,340 62,900
Slide 58: Residential Land Sales at Tianjin Eco-City
Residential Land Sales at Tianjin Eco-City Selling Price Sales Value Land Area GFA Plot Date Plot Ratio Based on (RMB’m) (Hectare) (sm) Based on GFA Land Area (RMB/sm) (RMB’m/hectare) Plot 18b Oct 2020 669 7.22 1.11 79,700 93 8,400 Plot 36 Apr 2020 1,174 10.86 1.6 167,400 108 7,000 Plot 30c Sep 2019
Slide 59: Connectivity
Connectivity [EEE Corporation °F
Slide 60: Financial Highlights - Connectivity
Financial Highlights - Connectivity S$m 2H 2020 2H 2019 % Change FY 2020 FY 2019 % Change Revenue 633 665 (5) 1,220 1,128 8 EBITDA 127 143 (11) 259 385 (33) Operating Profit 17 41 (59) 46 210 (78) Profit Before Tax 16 35 (54) 29 196 (85) Net Profit 13 18 (28) 13 136 (90) 60
Slide 61: M1 Operational Highlights
M1 Operational Highlights Revenue Customers 1,135 2,329 1,074 2,077 222 392 228 355 573 238 36 27 166 186 S$m ‘000 1,535 1,611 542 506 0 0 FY 2019 FY 2020 End-2019 End-2020 Mobile services Fixed services Postpaid Prepaid Fibre broadband International call services Equipment sales 61
Slide 62: Asset Management
Asset Management [EEE Corporation 2 F
Slide 63: Financial Highlights - Asset Management
Financial Highlights - Asset Management S$m 2H 2020 2H 2019 % Change FY 2020 FY 2019 % Change Revenue 75 73 3 135 145 (7) EBITDA 48 70 (31) 276 123 124 Operating Profit 46 69 (33) 273 120 128 Profit Before Tax 34 123 (72) 304 239 27 Net Profit 22 109 (80) 280 214 31 63
Slide 64: Stakes in REITs/ Trust & Private Funds
Stakes in REITs/ Trust & Private Funds Asset Classi Valueiii (S$m) Real estate 2,222 Data centres 983 Infrastructure 529 Alternative assetsii 192 Total 3,926 i Comprises listed REITs/Trust and private funds. ii Includes senior living, education and logistics vehicles, as well as private credit fund.