Slide 1: Second Quarter and Half Year 2018 Financial Results
Keppel Infrastructure Trust Second Quarter and Half Year 2018 Financial Results 17 July 2018
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
Slide 3: Key Highlights for 2Q 2018
Key Highlights for 2Q 2018 Distribution per Unit Distribution Yield 0.93 cents ^ ^ 7.2% Stable DPU of 0.93 cents ^ for 2Q 2018 As at 30 June 2018 bringing total DPU to 1.86 cents for 1H 2018 Distributable Cash Flows Net Asset Value S$36.2 million 28.8 cents Stable distributable cash flows of As at 3
Slide 4: Business Updates
Business Updates • Customer base grew by 4.0% from 798,000 as of 2Q 2017 to 830,000 as of 2Q 2018 City Gas • Achieved 100% availability in 2Q 2018 • Consist of Senoko WTE, Tuas WTE, SingSpring Desalination (“SingSpring”) and Ulu Pandan NEWater plants in Singapore • Fulfilled all contractual obligati
Slide 5: Business Updates
Business Updates • On 5 December 2016, Basslink announced the completion of its investigations into the cause of the outage. Cause of cable failure is “cause unknown”, supporting Basslink’s view that the cable failure was a force majeure event • Hydro Tasmania (“HT”) disagrees that the outage is a f
Slide 6: 2Q 2018 Distributable Cash Flows
2Q 2018 Distributable Cash Flows Delivered distributable cash flows of S$36.2 million in 2Q 2018 2Q FY18 2Q FY17 S$’000 S$’000 Remarks City Gas 10,453 11,590 • Due to time lag in the adjustment of gas tariffs to reflect actual fuel cost Concessions 17,678 17,790 • All plants fulfilled contractual ob
Slide 7: 1H 2018 Distributable Cash Flows
1H 2018 Distributable Cash Flows Delivered distributable cash flows of S$72.5 million in 1H 2018 1H FY18 1H FY17 S$’000 S$’000 Remarks City Gas 20,709 20,526 • Comparable to prior year Concessions 35,350 35,158 • All plants fulfilled contractual obligations KMC 21,837 22,647 • Due to unplanned maint
Slide 8: Diversified Portfolio of Core Infrastructure Assets
Diversified Portfolio of Core Infrastructure Assets Long-term, regular and predictable cash flows generated from a diversified portfolio ranging from Utilities, Power and Telecommunications infrastructure assets 1H 2018 Adjusted EBITDA (1) Total Assets as at 30 Jun 2018 Corporate KMC (2) 2% 23% (2)
Slide 9: Regular and Stable Returns
Regular and Stable Returns DPU (S cents) 2Q FY18 DPU: 0.93 Singapore cents Book closure date: 25 July 2018 Distribution Payment date: 17 Aug 2018 1 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.8 0.6 0.4 0.2 0 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 8
Slide 10: Regular and Stable Returns
Regular and Stable Returns Distribution Yield (1) Infrastructure Trusts Singapore Industrial REITs 16.0% 9.4% Average: 7.8% 8.5% 8.5% 8.3% 7.5% 7.2% 7.2 (2) Average: 6.8% 6.3% 6.1% 6.1% 5.8% 5.7% 4.4%(3) 4.6% 3.3% Asian Pay Hutchison Keppel Accordia Netlink Ascendas Soilbuild Viva Cache Sabana EREIT
Slide 11: Strong Balance Sheet
Strong Balance Sheet As at 30 June 2018 Excluding Sustainable gearing backed by S$’m Total Basslink Long term contracts expiring Cash 217 167 between 2024 and 2046 Borrowings 1,785 1,078 Creditworthy customers and City Gas’ large and stable Net debt 1,568 911 customer base Recurring and stable Total
Slide 12: Prudent Capital Management
Prudent Capital Management Debt Overview Debt Breakdown • Hedged ~91% of total loans Debt Repayment Profile • Other than KIT corporate loan, rest of the loans are non- > 5 yrs recourse 0.6% < 1 yr 19.7% • Maintain stable interest rate of 4-5% − Singapore average: 3-4% − Australian average: 6-7% • We
Slide 13: 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 infrastructure assets 3 Long term contracts with credit worthy customers or large and stable customer base 4 Generate long term, regular and predictable cash fl
Slide 14: Appendix I: Additional Information
Appendix I: Additional Information 13
Slide 15: 2Q 2018 Results: City Gas
2Q 2018 Results: City Gas 2Q FY18 2Q FY17 Change 1H FY18 1H FY17 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 85,734 80,026 7.1 167,837 157,495 6.6 Other income 458 399 14.8 789 699 12.9 Other (losses)/gains - net (106) (161) (34.2) 22 (822) N/M Expenses Fuel and electricity costs (33,941) (28,511
Slide 16: 2Q 2018 Results: Concessions
2Q 2018 Results: Concessions 2Q FY18 2Q FY17 Change 1H FY18 1H FY17 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 22,777 23,274 (2.1) 46,115 46,478 (0.8) Other income 134 114 17.5 270 219 23.3 Expenses Fuel and electricity costs (2,360) (2,306) 2.3 (5,032) (4,572) 10.1 Depreciation and amortisation
Slide 17: 2Q 2018 Results: Basslink
2Q 2018 Results: Basslink 2Q FY18 2Q FY17 Change 1H FY18 1H FY17 Change A#039;000 A#039;000 % A#039;000 A#039;000 % Revenue 4,114 21,722 (81.1) 25,372 41,499 (38.9) Other income 240 235 2.1 482 432 11.6 Other losses - net (1,003) (1,377) (27.2) (8,217) (2,729) >100.0 Expenses Fuel and electricity costs (48) (72
Slide 18: 2Q 2018 Results: KMC
2Q 2018 Results: KMC 2Q FY18 2Q FY17 Change 1H FY18 1H FY17 Change S#039;000 S#039;000 % S#039;000 S#039;000 % Revenue 30,577 32,537 (6.0) 63,181 64,960 (2.7) Other income 10 117 (91.5) 16 521 (96.9) Other gains - 4 (100.0) 2 3 (33.3) Expenses Depreciation and amortisation (18,923) (18,902) 0.1 (37,856) (37,787
Slide 19: 2Q 2018: Distributable Cash Flows
2Q 2018: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 3,935 451 (16,577) (21,189) 19,636 (13,744) Add/(less) Reduction in concessions/lease receivables - 13,727 - - - 13,727 Non-cash finance cost 99 5 1,615 163 27 1,909 Other non-cash items (
Slide 20: 2Q 2017: Distributable Cash Flows
2Q 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 4,703 7 1,492 (19,197) 19,932 6,937 Add/(less) Reduction in concessions/lease receivables - 13,350 - - - 13,350 Non-cash finance cost 97 7 1,265 156 26 1,551 Other non-cash items 89 942 86
Slide 21: 1H 2018: Distributable Cash Flows
1H 2018: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 7,678 858 (21,545) (40,065) 38,262 (14,812) Add/(less) Reduction in concessions/lease receivables - 27,411 - - - 27,411 Non-cash finance cost 196 11 3,280 323 54 3,864 Other non-cash items
Slide 22: 1H 2017: Distributable Cash Flows
1H 2017: Distributable Cash Flows S#039;000 City Gas Concessions Basslink KMC Others Group Profit/(loss) after tax 6,187 121 1,137 (37,985) 35,569 5,029 Add/(less) Reduction in concessions/lease receivables - 26,570 - - - 26,570 Non-cash finance cost 193 13 2,549 314 2,769 5,838 Other non-cash items 74
Slide 23: Loan Profile
Loan Profile Entity Amount (S$’m) Loan Maturity Repayment City Gas 178.0 Feb 2019 Bullet* SingSpring 55.3 Dec 2024 Amortising 711.2 Basslink Nov 2019 Amortising* (A$700.8m) KMC 700.0 Jun 2020 Bullet* KIT 145.6 Feb 2019 Bullet* * To be refinanced upon maturity 22
Slide 24: Appendix II: Overview of KIT
Appendix II: Overview of KIT 23
Slide 25: 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%
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: Thank You
Thank You www.kepinfratrust.com 28