Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — SGX-Maybank Kim Eng Corporate Day 2019
26 slides from Keppel Infrastructure Trust's conference presentation, Aug 15, 2019
Slide 1: SGX-Maybank Kim Eng Corporate Day
SGX-Maybank Kim Eng Corporate Day Kuala Lumpur, Malaysia 15 August 2019
Slide 2: Important notice
Important notice 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
Slide 3: Outline
Outline • Corporate Overview • Competitive Strengths • Appendix 3
Slide 4: Corporate Overview
Corporate Overview Ixom (Australia)
Slide 5: Overview of Keppel Infrastructure Trust
Overview of Keppel Infrastructure Trust Portfolio of highly strategic assets providing industrial chemicals, utilities, power and Company overview telecoms infrastructure ▪ The largest diversified Business Trust listed in Singapore with a portfolio of strategic infrastructure assets DataCentre City
Slide 6: Overview of Keppel Infrastructure Trust
Overview of Keppel Infrastructure Trust Assets by Type (%) (as at 30 June 2019) 1H 2019 highlights 11.4 19.0 0.4 $5.2bn Total Assets 17.9 10.1 $94.2m Distributable Cash Flows 15.9 30% increase compared to 1H 2018 25.3 City Gas DC One 1.86 cents Distribution per Unit Basslink Ixom KMC Waste & Water N
Slide 7: Business Sectors
Business Sectors A Diversified Business Trust with a Strategic Portfolio of Infrastructure-Like Assets Distribution & Network Energy Waste & Water Strategic infrastructure assets with Stable and resilient infrastructure assets anchored by potential for long-term growth supported by concession contra
Slide 8: Portfolio Summary
Portfolio Summary 1 AUSTRALIA & 9 SingSpring City Gas SINGAPORE NEW ZEALAND Desalination Plant ▪ Sole supplier of town gas in 6 1 4 ▪ 1 of 3 Desalination plants in Singapore 3 Singapore ▪ Customer base of more than ▪ Responsible for meeting the water 850,000 residential, commercial demands of Singap
Slide 9: Strong Visibility of Recurring Cash Flows Supported by Credit-Worthy Counterparties
Strong Visibility of Recurring Cash Flows Supported by Credit-Worthy Counterparties % of distributable cash Assets/Businesses flows (1H 2019)(1) Counterparty Highlights National Environment Agency of ✓ NEA and PUB are statutory bodies under the Government of Waste and Water 34.6% Singapore; Singapor
Slide 10: Competitive Strengths
Competitive Strengths Senoko Waste-to-Energy Plant (Singapore)
Slide 11: Competitive Strengths
Competitive Strengths 2 Provides essential products 1 Singapore-listed infrastructure-focused and services to customers investment vehicle underpinned by a large and well-diversified portfolio 7 Experienced board and management 3 Balanced portfolio comprising both team with strong alignment in conce
Slide 12: Singapore-Listed Infrastructure-Focused Investment Vehicle Underpinned by a Large and Well-Diversified Portfolio
1 Singapore-Listed Infrastructure-Focused Investment Vehicle Underpinned by a Large and Well-Diversified Portfolio KIT’s distributable cash flows are diversified across the three segments of Distribution & Network, Energy and Waste & Water Australia and Singapore New Zealand Distribution & Network E
Slide 13: Provides Essential Products and Services to Customers
2 Provides Essential Products and Services to Customers Distribution & Network Energy Waste & Water • City Gas is the sole supplier of town gas in • The Keppel Merlimau Cogen (KMC) plant is a • KIT owns two of four waste incineration Singapore. City Gas serves over 850,000 competitive gas-fired powe
Slide 14: Balanced Portfolio Comprising Both Concessions-Based Assets and Going-Concern Businesses
3 Balanced Portfolio Comprising Both Concessions-Based Assets and Going-Concern Businesses with Long-Term Growth Prospects Ixom City Gas Basslink Ixom and City Gas are evergreen businesses with recurring ◼ Long term recurring cash flows with ◼ Long term recurring cash flows with ◼ Service agreement
Slide 15: Proven Track Record of Delivering High Quality, Reliable and Safe Operations
4 Proven Track Record of Delivering High Quality, Reliable and Safe Operations City Gas ▪ Continued to maintain 100% production availability in 2018 and 1H 2019 ✓ Distribution & Network DataCentre One ▪ Fulfilled all contractual performance requirements in 2018 and 1H 2019 ✓ Ixom ▪ Performance on tr
Slide 16: Long-term Stable Cash Flows Supported by AAA Singapore Government-Linked Off-takers
5 Long-term Stable Cash Flows Supported by AAA Singapore Government-Linked Off-takers and Creditworthy Counterparties Combination of long-term contracts with high credit quality off-takers along with high barriers to entry ensure a visible path for long-term cash flows and growth going forward Portf
Slide 17: Prudent Leverage, Diversified Sources of Funding and Non-Recourse Asset Level Debt
6 Prudent Leverage, Diversified Sources of Funding and Non-Recourse Asset Level Debt Targets an optimal cost of capital supported by a capital structure that is sustainable across economic cycles Recourse/non-recourse debt Group Consolidated Net Debt/Assets Recourse Capital Strives for primarily non
Slide 18: Experienced Board and Management Team with Strong Alignment in Delivering Long-Term Value
7 Experienced Board and Management Team with Strong Alignment in Delivering Long-Term Value Management Team Matthew Pollard 28yrs Eric Ng 18yrs Chief Executive Officer Head, Finance 1 Significant industry experience ✓ Responsible for determining the strategy of KIT and ✓ Responsible for KIT's financ
Slide 19: Regular and Stable Distributions
Regular and Stable Distributions Stable DPU (S cents) FY 2016 FY 2017 FY 2018 1H 2019 3.72 3.72 3.72 1.86 Comparative Yields(1) 8.0% 7.4% 6.0% 4.5% 3.8% 4.0% 1.8% 2.0% 2.0% 0.0% 5 Yr SG Govt 10 Yr SG STI FTSE ST KIT bond Govt bond REIT Index 1. Sources: Bloomberg and MAS, comparative yield based on
Slide 20: Driving Sustainable Growth
Driving Sustainable Growth KIT’s long-term strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distributions and steady capital appreciation Anchored By a growing portfolio of strategic infrastructure assets/businesses across a broad range of highl
Slide 21: Appendix
Appendix Tuas Waste-to-Energy Plant (Singapore)
Slide 22: Three-pronged Growth Strategy
Three-pronged Growth Strategy Stable cash flows and Keppel Acquisition organic growth Synergy Strategy The Trustee-Manager actively The Trustee-Manager, as part of the Keppel Group, is able The Trustee-Manager acquires and manages its existing portfolio to drive to draw upon the relationships, netwo
Slide 23: Keppel Infrastructure Trust Structure
Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage the The Trustee-Manager can leverage the scale and resources of a larger asset Sponsor‘s expertise and track record management platform in this industry ~82%
Slide 24: Distribution & Network
Description Customer and contract terms Primary source of cash flows Fixed margin per unit of gas sold, with Over 840,000 commercial and residential Sole producer and retailer of piped town gas fuel and electricity costs passed through customers Distribution & Network to consumer Basslink subsea int
Slide 25: Comparison Between Business Trusts, REITs and Listed Company
Comparison Between Business Trusts, REITs and Listed Company Business Trust REIT Listed Company Legislation Regime • Business Trusts Act • Code on Collective Investment Scheme • Companies Act • Not a separate legal entity • Not a separate legal entity • Created by a trust deed • Created by a trust d
Slide 26: Thank You
Thank You For more information, please visit www.kepinfratrust.com Ixom (Australia)
Keppel Infrastructure Trust — SGX-Maybank Kim Eng Corporate Day 2019 on 6ix