Slide 1: Fourth Quarter & Full Year 2018 Financial Results
Fourth Quarter & Full Year 2018 Financial Results 22 January 2019
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: Outline
Outline Key Highlights Business Updates Finance and Capital Management Scaling to Deliver Looking Ahead 2
Slide 4: Key Highlights
Ixom (Laverton) Key Highlights
Slide 5: Key Highlights for FY 2018
Key Highlights for FY 2018 Distribution per Unit Distributable Cash Flows Proposed Acquisition of 3.72 cents S$141.2 million Ixom Holdco Pty Ltd Stable DPU of 0.93 cents Stable distributable cash flows Enhancing KIT’s long term value for 4Q 2018 of S$34.2 million proposition for 4Q 2018 Gearing Dist
Slide 6: Business Updates
Keppel Merlimau Cogen Business Updates
Slide 7: Business Updates
Business Updates Portfolio of highly strategic and core assets Sectors Energy Distribution & Network Water & Waste Total (1) 28% 53%(2) % 19% Assets KMC City Gas; Basslink; DataCentre One Senoko and Tuas WTE Plants, Ulu Pandan and SingSpring Water Plants Fulfilled City Gas Fulfilled all contra
Slide 8: Finance & Capital Management
Senoko WTE Plant Finance & Capital Management
Slide 9: Distributable Cash Flows
Distributable Cash Flows +/(-) +/(-) (S$’000) 4Q 2018 4Q 2017 FY 2018 FY 2017 % % Energy • KMC 11,538 11,769 (2.0) 45,141 45,717 (1.3) Distribution & Network • City Gas(1) 7,606 6,254 21.6 35,257 40,669 (13.3) • DC One(2) 1,379 1,165 18.4 5,211 3,872 34.6 Water & Waste(3) 18,075 15,529 16.4 71,343 6
Slide 10: Regular and Stable Returns
Regular and Stable Returns Comparative Yields^ 10.0% 8.0% 7.67% 6.0% 5.14% 4.37% 4.0% 1.91% 2.04% 2.0% 0.0% 5 Yr SG 10 Yr SG STI FTSE ST KIT Govt bond Govt bond REIT Index DPU (S cents) 4Q FY18 DPU: 0.93 Singapore cents Book closure date: 30 January 2019 Payment date: 28 February 2019 ^Sources:
Slide 11: Balance Sheet
Balance Sheet Sustainable gearing supported by: (S$’m) As at 31 December 2018 Long term contracts expiring Excl. Total between 2024 and 2046 Basslink Cash 232 178 Creditworthy customers and City Borrowings 1,775 1,075 Gas’ large and stable customer base Net debt 1,543 897 Recurring and stable
Slide 12: Capital Management
Capital Management Hedged ~91% of total loans Debt Repayment Debt Breakdown by Profile Currency All loans non-recourse except KIT corporate loan Stable interest rate of 4-5%. > 5 yrs < 1 yr 0.4% A$ − Singapore average: 3-4% 58.3% 40% − Australian average: 6-7% 1-5 yrs Weighted average term t
Slide 13: Scaling to Deliver – Proposed Acquisition of Ixom Holdco Pty Ltd
Ixom (Port Kembla) Scaling to Deliver – Proposed Acquisition of Ixom Holdco Pty Ltd
Slide 14: Driving Long Term Value for Unitholders
Driving Long Term Value for Unitholders A leading industrial infrastructure business in Enterprise Value (EV) & Proposed Australia and New Zealand Funding Infrastructure-backed EBITDA EBITDA Revenue EV: A$1,100 million (approx. S$1,072 million(5)) ~80% A$134M A$1,225M Funded by mix of debt and e
Slide 15: Enhancing KIT's Value Proposition
Enhancing KIT’s Value Proposition Industrial-like business with infrastructure characteristics Strengthen KIT’s portfolio mix and overall value proposition Scale and well-positioned locations gives Ixom an Total Assets by Type Total Assets by Type (with enviable market position (KIT)(2) Ixom)(2) a
Slide 16: Merits of the Proposed Acquisition
Merits of the Proposed Acquisition 1 A Strong and Stable Infrastructure Business Supported by a large network of well-positioned infrastructure 2 A Business with Growth Potential Amongst the leading businesses in the provision of key chemicals for fundamental industries with favourable market trends
Slide 17: Looking Ahead
Ulu Pandan NEWater Plant Looking Ahead
Slide 18: Three-pronged Growth Strategy
Three-pronged Growth Strategy Provide long-term, regular and predictable distributions 1 Organic Growth from Existing Portfolio 2 Keppel Synergy 3 Acquisition Strategy KIT New Investments Keppel Capital Businesses / Assets that generate long Bridge financing term stable cash flows with some grow
Slide 19: Additional Information
City Gas Additional Information
Slide 20: FY 2018 Results: KMC
FY 2018 Results: KMC FY2018 FY2017 Change S#039;000 S#039;000 % Revenue 129,121 129,949 (0.6) Other income 40 580 (93.1) Other gains 138 5 >100.0 Expenses Depreciation and amortisation (75,699) (75,598) 0.1 Operation and maintenance costs (18,535) (18,760) (1.2) Finance costs (1) (107,764) (107,589) 0.2 O
Slide 21: FY 2018 Results: City Gas
FY 2018 Results: City Gas FY18 FY17 Change S#039;000 S#039;000 % Revenue 347,629 320,372 8.5 Other income 2,030 1,600 26.9 Other (losses)/gains - net (420) (1,302) (67.7) Expenses Fuel and electricity costs (144,846) (115,234) 25.7 Gas transportation costs (93,873) (93,109) 0.8 Depreciation and amortisati
Slide 22: FY 2018 Results: Basslink
FY 2018 Results: Basslink FY2018 FY2017 Change A#039;000 A#039;000 % Revenue 66,426 80,478 (17.5) Other income 6,073 895 >100.0 Other losses - net (13,207) (7,080) 86.5 Expenses Fuel and electricity costs (317) (280) 13.2 Depreciation and amortisation (17,775) (17,759) 0.1 Staff costs (2,808) (2,792) 0.6
Slide 23: FY 2018 Results: Water & Waste
FY 2018 Results: Water & Waste FY2018 FY2017 Change S#039;000 S#039;000 % Revenue 93,514 95,597 (2.2) Other income 717 492 45.7 Expenses Fuel and electricity costs (10,435) (10,478) (0.4) Depreciation and amortisation (7,055) (7,052) 0.0 Operation and maintenance costs (45,524) (48,684) (6.5) Finance cost
Slide 24: 4Q 2018: Distributable Cash Flows
4Q 2018: Distributable Cash Flows S#039;000 KMC City Gas Basslink Water & Waste Others Group Profit/(loss) after tax (16,781) 778 8,771 898 19,208 12,874 Add/(less) Reduction in concessions/lease receivables - - - 13,770 - 13,770 Non-cash finance cost 163 101 109 5 27 405 Other non-cash items 747 690 7
Slide 25: 4Q 2017: Distributable Cash Flows
4Q 2017: Distributable Cash Flows S#039;000 KMC City Gas Basslink Water & Waste Others Group Profit/(loss) after tax (16,020) 475 (2,397) 145 20,171 2,374 Add/(less) Reduction in concessions/lease receivables - - - 13,392 - 13,392 Non-cash finance cost 159 99 (1,416) 5 20 (1,133) Other non-cash items 7
Slide 26: FY2018: Distributable Cash Flows
FY2018: Distributable Cash Flows S#039;000 KMC City Gas Basslink Water & Waste Others Group Profit/(loss) after tax (75,660) 9,275 (15,886) 2,308 77,605 (2,358) Add/(less) Reduction in concessions/lease receivables - - - 54,951 - 54,951 Non-cash finance cost 649 397 5,012 21 111 6,190 Other non-cash it
Slide 27: FY2017: Distributable Cash Flows
FY2017: Distributable Cash Flows S#039;000 KMC City Gas Basslink Water & Waste Others Group Profit/(loss) after tax (73,671) 13,318 (2,032) 510 75,651 13,776 Add/(less) Reduction in concessions/lease receivables - - - 53,353 - 53,353 Non-cash finance cost 634 390 2,437 24 2,812 6,297 Other non-cash ite
Slide 28: Keppel Infrastructure Trust Structure
Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise asset management platform and track record in this industry 100%
Slide 29: Portfolio Overview
Portfolio Overview KIT’s portfolio comprises highly strategic assets providing industrial chemicals, utilities, power and telecoms infrastructure Description Customer and Contract Terms Primary Source of Cash Flows 1) Industrial infrastructure business in Australia Payments from customers for delive
Slide 30: Thank You
Thank You www.kepinfratrust.com