Keppel Infrastructure Trust · SGX:A7RU

Keppel Infrastructure Trust — 9M FY2017 Earnings Presentation

28 slides from Keppel Infrastructure Trust's earnings presentation, Oct 16, 2017

  1. Slide 1: 3Q FY17 and 9M FY17 Financial Results

    Keppel Infrastructure Trust 3Q FY17 and 9M FY17 Financial Results 16 October 2017

  2. Slide 2: Important Notice

    Not for distribution in the United States Important Notice 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

  3. Slide 3: Key Highlights for 3Q 2017

    Key Highlights for 3Q 2017 Distribution per Unit Distribution Yield 0.93 cents ^ ^ 6.8% Steady DPU of 0.93 cents ^ for 3Q 2017 As at 30 September 2017 bringing total DPU to 2.79 cents for 9M 2017 Distributable Cash Flows Net Asset Value S$40.5 million 30.4 cents Distributable cash flows of As at 30

  4. Slide 4: Business Updates

    Business Updates • Customer base grew by 4% from 775,000 as of 3Q 2016 to 806,000 as of 3Q 2017 City Gas • Achieved 100% plant availability for 3Q 2017 • Consist of Senoko WTE, Tuas WTE, SingSpring Desalination and Ulu Pandan NEWater plants in Singapore Concessions • Fulfilled all contractual obliga

  5. Slide 5: 3Q 2017 Distributable Cash Flows

    3Q 2017 Distributable Cash Flows Delivered distributable cash flows of S$40.5 million in 3Q 2017 3Q FY17 3Q FY16 S$’000 S$’000 Remarks City Gas 13,889 10,090 • Due to time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 17,761 18,221 • All plants fulfilled contractual ob

  6. Slide 6: 9M 2017 Distributable Cash Flows

    9M 2017 Distributable Cash Flows Delivered distributable cash flows for 9M 2017 was S$113.5 million 9M FY17 9M FY16 S$’000 S$’000 Remarks City Gas 34,415 36,284 • Due to time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 52,919 52,422 • All plants fulfilled contractual

  7. Slide 7: Diversified Portfolio of Core Infrastructure Assets

    Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets 9M FY17 Adjusted EBITDA (1) Total Assets as at 30 Sep 2017 Corporate KMC (2) 2% 21% (2)

  8. Slide 8: Regular and Stable Returns

    Regular and Stable Returns DPU (S cents) 3Q FY17 DPU: 0.93 Singapore cents Book closure date: 25 October 2017 S cents/unit Distribution Payment date: 17 November 2017 1 0.8 0.6 0.4 0.2 0 (1) 3QFY15/4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 (1) On 19 October 2015, KIT changed its financ

  9. Slide 9: Regular and Stable Returns: Distribution Yield

    Regular and Stable Returns Distribution Yield (1) Infrastructure Trusts Singapore Industrial REITs 11.4% Average: 7.5% Average: 6.9% 9.8% 8.3% 8.4% 7.9% (3) 7.1% 6.9% 7.0% 6.8% 6.3% 6.2% 5.6% (2) 5.7% 5.5% 5.5% 5.4% (1) Source: Bloomberg’s dividend yield data as at 30 September 2017 (2) Based on for

  10. Slide 10: Strong Balance Sheet

    Strong Balance Sheet As at 30 September 2017 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 229 176 between 2024 and 2046 Borrowings 1,843 1,087 Creditworthy customers and City Gas’ large and stable Net debt 1,614 911 customer base Recurring and stable

  11. Slide 11: Prudent Capital Management

    Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~86% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non- > 5 yrs < 1 yr recourse 0.9% 1.6% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Wei

  12. Slide 12: Well-Positioned to Deliver Long-term Value and Growth

    Well-Positioned to Deliver Long-term Value and Growth 1 One of Singapore’s largest infrastructure business trust 2 Diversified portfolio of core infrastructure assets 3 Long term contracts with credit worthy customers or large and stable customer base 4 Generate long term, regular and predictable ca

  13. Slide 13: Appendix I: Additional Information

    Appendix I: Additional Information 12

  14. Slide 14: 3Q 2017 Results: City Gas

    3Q 2017 Results: City Gas 3Q FY17 3Q FY16 Change 9M FY17 9M FY16 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 81,683 72,054 13.4 239,178 213,046 12.3 Other income 448 430 4.2 1,147 1,220 (6.0) Other (losses)/gains - net (73) (387) (81.1) (895) 209 N/M Expenses Fuel and electricity costs (26,472) (

  15. Slide 15: 3Q 2017 Results: Concessions

    3Q 2017 Results: Concessions 3Q FY17 3Q FY16 Change 9M FY17 9M FY16 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 25,318 32,637 (22.4) 71,796 88,607 (19.0) Other income 133 104 27.9 352 473 (25.6) Expenses Fuel and electricity costs (3,316) (2,592) 27.9 (7,888) (7,799) 1.1 Depreciation and amortisa

  16. Slide 16: 3Q 2017 Results: Basslink

    3Q 2017 Results: Basslink 3Q FY17 3Q FY16 Change 9M FY17 9M FY16 Change A#039;000 A#039;000 % A#039;000 A#039;000 % Revenue 19,366 21,695 (10.7) 60,865 28,020 >100.0 Other income 224 3,445 (93.5) 656 19,059 (96.6) Other losses - net (1,352) (1,381) (2.1) (4,081) (4,071) 0.2 Expenses Fuel and electricity costs (

  17. Slide 17: 3Q 2017 Results: KMC

    3Q 2017 Results: KMC 3Q FY17 3Q FY16 Change 9M FY17 9M FY16 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 32,495 32,468 0.1 97,455 95,625 1.9 Other income 35 637 (94.5) 556 3,003 (81.5) Other losses - net 1 (2) N/M 4 (493) N/M Expenses Depreciation and amortisation (18,891) (18,911) (0.1) (56,678)

  18. Slide 18: 3Q 2017: Distributable Cash Flows

    3Q 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 6,656 244 (772) (19,666) 19,910 6,372 Add/(less) Reduction in concessions/lease receivables - 13,391 - - - 13,391 Non-cash finance cost 98 6 1,306 159 23 1,592 Other non-cash items (126) 5

  19. Slide 19: 3Q 2016: Distributable Cash Flows

    3Q 2016: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 1,583 1,196 4,671 (19,003) 19,261 7,708 Add/(less) Reduction in concessions/lease receivables - 12,989 - - - 12,989 Non-cash finance cost 97 8 1,267 161 1,617 3,150 Other non-cash items 46

  20. Slide 20: 9M 2017: Distributable Cash Flows

    9M 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 12,843 365 365 (57,651) 55,479 11,401 Add/(less) Reduction in concessions/lease receivables - 39,961 - - - 39,961 Non-cash finance cost 291 19 3,853 475 2,792 7,430 Other non-cash items 61

  21. Slide 21: 9M 2016: Distributable Cash Flows

    9M 2016: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 9,999 3,554 (8,422) (58,311) 59,010 5,830 Add/(less) Reduction in concessions/lease receivables - 38,184 - - - 38,184 Non-cash finance cost 288 22 3,743 466 1,649 6,168 Other non-cash item

  22. Slide 22: Loan Profile

    Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 63.2 Dec 2024 Amortising 762.4 Basslink Nov 2019 Amortising* (A$704.6) KMC 700.0 Jun 2020 Bullet* KIT 148.0 Feb 2019 Bullet* * To be refinanced upon maturity 21

  23. Slide 23: Appendix II: Overview of KIT

    Appendix II: Overview of KIT 22

  24. Slide 24: Keppel Infrastructure Trust Structure

    Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor„s expertise Institutional and asset management platform and track record in this industry Public Investors ~18%

  25. Slide 25: Portfolio Overview

    Portfolio Overview Asset Business Customer Contract Terms Cash Flows Senoko WTE Plant 2,310 tonnes/day NEA, Singapore 2024 Principally fixed availability waste incineration concession government agency payment Tuas WTE Plant 800 tonnes/day NEA, Singapore 2034 Principally fixed availability waste inc

  26. Slide 26: KIT Investment Criteria

    KIT Investment Criteria KIT Investment Criteria Portfolio of highly strategic assets Telecoms  KIT aims to provide Unitholders Utilities Infra Power Infra Infra with long-term, regular and predictable distributions by Singapore DataCentre City Gas KMC Basslink Concessions One pursuing investments t

  27. Slide 27: Three-pronged Growth Strategy

    Three-pronged Growth Strategy 1 Organic Growth from Existing Portfolio 2 Keppel Synergy 3 Acquisition Strategy KIT New Investments  Assets that generate long term Keppel Capital stable cash flows with some growth  Singapore and other developed  Co-investment, bridge financing Potential Upsides ma

  28. Slide 28: Thank You

    Thank You www.kepinfratrust.com 27

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