Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (February 2017)
20 slides from Keppel Infrastructure Trust's investor presentation, February 2017
Slide 1: Investor Presentation February 2017
Investor Presentation February 2017
Slide 2: Disclaimer
Disclaimer 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 to pur
Slide 3: At a Glance
At a Glance Key Highlights Financial Snapshot Largest Singapore focused infrastructure business trust Market Value (1) Generates long-term, regular and predictable cash flows Market Capitalisation S$ 1,909 m from a diversified portfolio of core infrastructure assets: Enterprise Value S$ 3,453 m So
Slide 4: Large & Well-diversified Portfolio of Core Infrastructure assets
1 Large & Well-diversified Portfolio of Core Infrastructure assets Investment Criteria Portfolio of highly strategic assets Telecoms KIT aims to provide Unitholders Utilities Infrastructure Power Infrastructure Infrastructure with long-term, regular and predictable distributions by Singapore DataC
Slide 5: Generates long-term predictable cash flows uncorrelated to GDP
2 Generates long-term predictable cash flows uncorrelated to GDP… 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, Singapor
Slide 6: Supporting Regular and Stable Distributions
2 … Supporting Regular and Stable Distributions DPU (S cents) S cents/unit 4Q FY16 DPU: 0.93 Singapore cents 2.5 Book closure date: 1 February 2017 1.98 Distribution Payment date: 17 February 2017 2 1.5 FY 2016 DPU: 1.05 3.72 Singapore cents 1 0.93 0.93 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0
Slide 7: Diversified Portfolio of Core Infrastructure Assets
3 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 FY2016 EBITDA (1) Total Assets as at 31 Dec 2016 (2) Corporate KMC 2% 29% (2) KMC 27%
Slide 8: Strong Balance Sheet
4 Strong Balance Sheet As at 31 December 2016 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 267 220 between 2024 and 2046 Borrowings 1,811 1,069 Creditworthy customers and City Gas’ large and stable Net debt 1,544 849 customer base Recurring and stable
Slide 9: Three-pronged Growth Strategy
5 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
Slide 10: Attractive Risk Adjusted Returns
6 Attractive Risk Adjusted Returns Distribution Yield (1) Infrastructure trusts Singapore Industrial REITs 15.1% Average: 8.9% Average: 7.6% 10.3% 9.8% 9.2% 9.0% 8.2% 8.1% 8.1% 7.0% 7.5% 6.9% 7.1% 6.3% 6.8% 5.1% 4.8% Accordia Golf Ascendas India Asia Pay Croesus Retail Hutchinson Keppel Keppel AIMPS
Slide 11: Regular and Stable Returns
7 Regular and Stable Returns Attractive Yield Keppel Infrastructure Keppel Infrastructure Trust 7.5 Trust (1) SG Govt 10-Year Bond 2.5 SG Govt 15-Year Bond 2.7 SG Govt 20-Year Bond 2.7 S&P Asia Infra Index 2.5 FTSE ST Utilities Index 3.8 Dow Jones/Asia Pacific Utilities Index 2.9 FTSE Global Core In
Slide 12: Key Investment Highlights
8 Key Investment Highlights KIT is well-positioned to deliver long-term value and growth to Unitholders. 1 Largest Singapore infrastructure focused business trust 2 Diversified portfolio of core infrastructure assets 3 Long term contracts with credit worthy customers or large and stable customer bas
Slide 13: Additional Information
Additional Information (CSS E] Infrastructure Trust 2
Slide 14: KIT's shareholding structure
KIT’s shareholding structure • Keppel Corporation completed the consolidation of its asset management businesses under Keppel Capital in July 2016 • This includes a 100% interest in Keppel Infrastructure Fund Management (KIFM), the Trustee-Manager of KIT • KIFM will be able to leverage the scale and
Slide 15: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure’s Pipeline Keppel Merlimau Cogen (KMC) - 49% through Keppel Energy Operational since 2007, with a total generation capacity of 1,300 MW KI, as the sponsor of KIT, owns 49% shareholding in KMC through Keppel Energy Changi Business Park - 100% through Ke
Slide 16: Key Differences: Business Trusts, REITs and Listed Companies in Singapore
Key Differences: Business Trusts, REITs and Listed Companies in Singapore Business Trust S-REIT Listed Company Regulatory Regime • Business Trusts Act • Code on Collective Investment • Companies Act Scheme Constitution • Not a separate legal entity • Not a separate legal entity • A separate legal en
Slide 17: KIFM Management Fee Structure
KIFM Management Fee Structure Management Fee • S$2.2 million per annum • Inflation adjustment in reference to the CPIS Performance Fee • 4.5% p.a. of sum of cash flow received by KIT Acquisition Fee • 0.5% of the Enterprise Value of any investment acquired, where the investment is acquired from: − S
Slide 18: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 71.0 Oct 2024 Amortising 750.2 Basslink (A$707.7) Nov 2019 Amortising* KMC 700.0 Jun 2020 Bullet* KIT 122.8 Feb 2019 Bullet* * To be refinanced upon maturity 17
Slide 19: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~85% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non-recourse > 5 yrs < 1 yr 1.3% 1.5% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • Heal
Slide 20: Thank You
Thank You www.kepinfratrust.com 19
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