Keppel Ltd. · SGX:BN4
Keppel — Non-Deal Roadshow (May 2018)
19 slides from Keppel's roadshow presentation, May 3, 2018
Slide 1: Presentation to Investors
Presentation to Investors London / Edinburgh 1-3 May 2018 1
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: Shaping the Future
Shaping the Future Keppel is an eco-system of companies working together, with a refreshed mission, to deliver solutions for sustainable urbanisation in a fast-changing environment. Global economic growth Digitalisation, AI and robotics Solutions for Sustainable Urbanisation Ageing Disruptive popula
Slide 4: Keppel's Eco-System
Keppel’s Eco-System Ramping up Current Engines Offshore & Property Infrastructure Investments Marine Enlarging capital base Keppel Capital Building New Keppel Urban Engines Harnessing operational strengths Solutions of Growth Collaborating for Growth Gas Value Chain Data Centres Smart Cities of the
Slide 5: Creating & Capturing Sustainable Value
Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation • Offshore & Marine Operation & Divestment Fee-based • Property • Infrastructure OWN STABILISE TRU
Slide 6: Fueling Growth through Asset Management
Fueling Growth through Asset Management Keppel Capital boosts the Group’s capital recycling platform and expands its capital base with co-investors. Target to grow AUM to S$50b by 2022 Harnessing synergies to: Private Funds Among SGX’s largest increase recurring Property Pan-Asian commercial R
Slide 7: Anchored on Multi-Business Strategy
Anchored on Multi-Business Strategy 1Q 2018 net profit Net profit was S$337m S$337m, up 34% yoy EVA was S$186m Annualised ROE was 11.4% 337 Free cash inflow of S$261m in 26 1Q 2018, vs outflow of S$62m in 1Q 2017 252 125 378 Net gearing was 0.42x at end-Mar S$m 2018 vs 0.46x at end-Dec 201
Slide 8: Offshore & Marine
Offshore & Marine Build resilience & seize opportunities Net orderbooki S$4.3b as at end-Mar 2018 YTD new contracts secured of ~S$580m 4.3 Develop rigs of tomorrow with 3.9 0.2 0.1 digitalisation and IoT to improve 0.7 0.7 efficiency and lower costs across project lifecycle 2.1 S$b 2.2 Develop
Slide 9: Property
Property A multi-faceted property player with high returns Residential Landbank Residential Singapore Others 4% 2% Total landbank of ~61,000 homes located mainly Indonesia 13% in growing Asian economies ~61,000 China homes 49% Early mover’s advantage with sizeable landbank Vietnam acquired at re
Slide 10: Infrastructure
Infrastructure Develop, own & operate quality assets Wide-ranging expertise across energy & environmental infrastructure projects Continued contribution from Infrastructure services New projects won in Hong Kong and Integrated Waste Management Singapore extend earnings visibility Facility, Hon
Slide 11: Strong Track Record in Master Development
Strong Track Record in Master Development Showcase: Sino-Singapore Tianjin Eco-City 2008 Today 11 11
Slide 12: Strong Track Record in Master Development
Strong Track Record in Master Development Showcase: Sino-Singapore Tianjin Eco-City Eco-City Residential Land Transactionsi 361,000 299,300 13,800 231,900 183,000 6,300 1,700 1,900 2014 2015 2016 2017 GFA Sold (sm) Avg. Selling Price (RMB/sm) Business model: Masterplanning, property development an
Slide 13: Keppel Urban Solutions
Keppel Urban Solutions Aims to pursue sustainable, smart urban development opportunities in the region Harnesses the Keppel Group’s diverse strengths and strong track record Incorporates open platform to partner best-in-class technology providers Collaborating with Keppel Land to develop the 6
Slide 14: Appendix: Financial Highlights
Appendix: Financial Highlights 14 14 14
Slide 15: Key Figures
Key Figures S$m FY17 FY16 % Chg 1Q18 1Q17 % Chg Revenue 5,964 6,767 (12) 1,470 1,248 18 Operating Profit 760 795 (4) 468 184 154 Net Profit 815* 784 4 337 252 34 EPS 44.8cts* 43.2cts 4 18.6 13.9 34 EVA (220)* (140) 57 186 17 >500 Free Cash Flow 1,802 540 234 261 (62) n.m. Increase Annualised ROE 6.9
Slide 16: Revenue by Segments
Revenue by Segments S$m FY17 % FY16 % 1Q18 % 1Q17 % Offshore & Marine 1,802 30 2,854 42 332 23 483 39 Property 1,782 30 2,035 30 543 37 262 21 Infrastructure 2,207 37 1,744 26 564 38 467 37 Investments 173 3 134 2 31 2 36 3 Total 5,964 100 6,767 100 1,470 100 1,248 100 16 16
Slide 17: Net Profit by Segments
Net Profit by Segments S$m FY17 % FY16 % 1Q18 % 1Q17 % Offshore & Marine (206)* (25) 29 4 (23) (7) - - Property 650 80 620 79 378 112 95 38 Infrastructure 134 16 99 13 26 8 32 13 Investments 237 29 36 4 (44) (13) 125 49 Total 815* 100 784 100 337 100 252 100 * Excludes one-off financial penalty from
Slide 18: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,846 1,885 102.3 103.8 1,525 84.0 685 726 38.0 39.9 405 22.3 457 414 363 815 25.3 22.9 20.0 44.8 784 43.2 143 128 7.9 6.9 347 406 397 225 264 19.2 22.3 21.9 12.4 14.6 205 171 11.3 9.4 357 339 360 252 337 19.8 18.7 19.8 13.9 18.6 211 11.6 * * 1Q 2Q 3Q 4Q
Slide 19: ROE & Dividend
ROE & Dividend Dividend in specie ~9.5cts/share 30.0% 100 Plus 90 25.0% 80 19.5% 18.8% 70 20.0% 60 15.0% 14.2% 50 48 40 10.0% 40 6.9% 6.9% 30 34 20 5.0% 22 20 10 10 12 12 0.0% 8 8 0 * FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 ROE Interim Dividend Full-Year Dividend * Excludes one-off financial penalty