Keystone Infra Ltd · TASE:KSTN
Keystone Infra — Debt Investor Presentation (December 2024)
28 slides from Keystone Infra's debt investor presentation, December 2024
Slide 1: Q3 2024 Investor Presentation & Series B Bond Issuance
Keystone Infra Ltd. Q3 2024 Investor Presentation & Series B Bond Issuance December 2024
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation is an English translation of the Hebrew version of Keystone Infra Ltd. investor presentation for the third quarter of 2024 and for a series B bond issuance, that was published on December 1 (the “Hebrew Version”). The Hebrew version is the binding version and the o
Slide 3: Managing a Portfolio of High-Demand Infrastructure Assets
Managing a Portfolio of High-Demand Infrastructure Assets Generating Strong, Diversified, and Predictable Cash Inflows Approx. NIS 3 billion Cash-Generating Assets Approx. 7.5 Attractive LTM Cash Yield % 1 Over NIS 250 million Projected Avg. Annual Cash inflows2 with growth potential from high-quali
Slide 4: Business Segments
Business Segments approx. Asset Value1 3B NIS 58% 36% 6% Transportation & EVs Energy and Renewables Water and Communication 36% Egged 14% IPM Power Plant Public Transit in Israel & Europe, Travel & Tour, approx. 450MW combined cycle power 5% VID Bus Service Centers, and Light Rail plant Water desali
Slide 5: Value-Focused Investment Strategy
Value-Focused Investment Strategy1 Excess Returns Relative to the Risk Level, With Rapid Payback From Cash-Generating Assets IRR 2 7% 16% 28% 26% 8% 13% 14% ROI 56 % 80% 110% 88% 33% Weighted IRR2 approx. 4 yrs. approx. 4.5 yrs. approx. 4 yrs. approx. 2.5 yrs. approx. 2.5 yrs. 31% 2% 1,379 23 % 117%
Slide 6: Consistent Growth in Equity and Dividends
Combined Value: Approx.10.5% LTM Return on Equity (Pre-Tax)2 Consistent Growth in Equity and Dividends 27% CAGR (Dec 2021 – Sept. 2024) 85% Dividends Growth (2022-2024)1 Approx.7.0% Annual Dividend Yield in 20243 January 2024: adopted a quarterly dividend policy 1,971 based on equity and was added t
Slide 7: Disciplined Financial Management
Disciplined Financial Management Optimizing Capital Structure to Ensure Sustainable Value Creation Approx. NIS Cash Surplus2 291M 788M Capital/Debt Structure Series B Bond Issuance Approx. NIS Net Financial Debt 27% Up to NIS 250 M unsecured bonds A/A+ LTV Company Rating / Bond Rating 30.9.2024 (Rea
Slide 8: Diversified Portfolio: Key to Financial Resilience
Diversified Portfolio: Key to Financial Resilience Approx.7.5% LTM Cash Yield1 Stable cash flow performance meeting forecasts, despite significant external headwinds 2x Expanded Cash inflows sources from 3 to 6 Approx. NIS 220M 2024 Projected Cash inflows1 4x Fourfold Cash inflows growth 2021-20241
Slide 9: Predictable Cash Inflows
Predictable Cash Inflows Over NIS M 250 Projected Average Annual Cash inflows from Income-Generating Assets (2025-2032) 377 400 368 Approx. 90% of assets provide significant 214 255 204 183 191 and predictable cash inflows 2025 2026 2027 2028 2029 2030 2031 2032 RUN RATE VID Drive Group Ramat Hovav
Slide 10: Key Financial Results
Key Financial Results Stable cash inflows and results show core resilience against external challenges Strong and stable cash flow with expected Income Statement Highlights 9M 2024 H1 2023 (in NIS thousands) delivery on 2024 revenue forecast¹ Cash inflows2 175,159 211,989 Changes in Fair Value (134,
Slide 11: Transportation & EVs
Transportation & EVs Egged I Eranovum I Drive Group Tevel Red Line, Yaffo
Slide 12: Egged
Egged 5 Synergetic and Growing Business Segments5 Israel's Leading Diversified Transportation Company Recent Developments1 22% Approx. 5.3 NIS Billion 11% 59% Keystone Egged Partnership European Operations Expansion Egged Value 5 30.6.2024 The exercise of a put option for approximately Mobilis expan
Slide 13: Egged: From a Cooperative to a Leading, Profitable, Growing Company
Egged From a Cooperative to a Leading, Profitable, and Growing Company 9M 2024 Revenue Breakdown 9M 2024 EBITDA1 Breakdown Approx. 11% 3 Revenue CAGR 2020-2024E 17% 15% 22% Approx. 3 7% EBITDA CAGR 2020-2024E 68% NIS 4.2 B ~14% YoY growth 7% 78% NIS 910 M ~16% YoY growth 3% Public transportation in
Slide 14: Public Transportation in Israel and Derech Egged
Public Transportation in Israel Derech Egged Egged Standalone (solo) by the Numbers (Including Derech Egged) Jerusalem Envelope 28% Market Share 3,000 Buses 7,000 Employees 15 Million Kilometers Approx. Approx. Annual licensing for 10 years Twice the size of the second-largest Including ~430 electri
Slide 15: Egged Europe
Egged Europe1 Egged Europe: GROWTH ENGINES Expanding into New Markets and Sectors EBS Netherlands Mobilis Poland Exploring entry into additional European countries and the 15% Market Share 800 Buses 35% Market Share 330 Buses light rail sector public bus sector in the out of which 387 electric, priv
Slide 16: Egged Travel & Tour
Egged Travel & Tour The largest transport company in Israel with ~300 buses GROWTH Revenue Breakdown ENGINES Implementing a business plan to drive efficiency initiatives, optimize 81% Egged Transportation 13% Educational 6% Tourism & Conferences subcontractor utilization, and 320 NIS Million Shuttle
Slide 17: Light Rail in the Tel Aviv Metropolitan Area
Additional Activities: Light Rail in the Tel Aviv Metropolitan Area Tevel, an Egged Subsidiary (51%), Operates the Red Line of the Light Rail Since August 2023, 10-year contract and extension option NIS 108M 90 70KM 9M 2024 Revenue Carriages; 45 trains in total Total track length NIS 4M 34 100,000 9
Slide 18: Real Estate - Egged
Real Estate - Egged Portfolio Enhancement Developments Approx 1.2B . NIS North Fair Value as of 30.6.20242 30% of value Strategic Initiative: Development of 4 Properties¹ Haifa and the Krayot Joint Venture with Nadav B. Logistics Nof Galil Jerusalem Transaction Overview: 35% of value Jerusalem Acqui
Slide 19: Eranovum and Drive Group
Eranovum Drive Group GROWTH EV Charging Network Across Strategic Highway & Toll Road Operations: ENGINES European Locations Highway 6 & Carmel Tunnels Highway 6 Concession Extension & Keystone Holdings: 49% Keystone Holdings: 21.3% Operating Agreement Successful Bids & Contract Wins for Operations,
Slide 20: Energy and Renewables
Energy and Renewables IPM, Hagit, and Ramat Hovav Power Plants | Sunflower Sunflower Poland
Slide 21: IPM Power Plant
IPM Power Plant Keystone Holdings: 34.3%1 Revenue EBITDA3 (NIS millions) (NIS millions) 450 MW 604 514 in combined cycle 166 85% of capacity License for electricity generation 149 and sales to IEC for 20 years 15% of capacity Bilateral sales to private customers2 9M 2023 9M 2024 9M 2023 9M 2024 2022
Slide 22: Ramat Hovav Power Plant, Hagit Power Plant and Valuation Summary
Ramat Hovav Power Plant Hagit Power Plant Valuation Summary (in NIS millions) 30.9.2024 Ramat Hovav Hagit Keystone Holdings: 16%1 Keystone Holdings: 16%1 Equity Value 354 97 1,195 MW of generation capacity Loans Value 29 28 660 MW of generation capacity Operates under the SMP regulation Operates und
Slide 23: Sunflower - Renewables
Sunflower - Renewables A publicly traded company operating in the renewable energy sector in Poland, Israel, and the U.S. Keystone Holdings: 53.24% (post exercising options: 6.6M NIS, Sept 2024) Poland Israel U.S. 5 operational wind farms with a 156 rooftop solar systems with a 604 MW / 1.3 GWh pipe
Slide 24: Water and Communications
Water and Communications Water desalination (VID) | Cinturion VID Ashkelon
Slide 25: VID and Cinturion
VID Cinturion Water desalination in Ashkelon Communications Keystone Holdings: 50% Keystone Holdings: 30% 120 million cubic meters of water production capacity per year, 2027 Concession ends, A 20,000 km optical fiber venture connecting India to Europe via the Middle East, offering an alternative to
Slide 26: Comprehensive Value Creation Strategy
Comprehensive Value Creation Strategy Striking the Optimal Balance Between Growth, Stability, and Shareholder Returns Maximizing Cash Flow Unlocking Value Shareholder Rewards Optimal Debt Management Active asset management Strategic partnerships Quarterly dividend policy Continuous optimization of d
Slide 27: Debt Service Capability
Debt Service Capability Convenient debt structure alongside expected free cash flow for debt service* Bond Series A & B repayment schedule and expected free cash flow for debt service (in millions of NIS)1,2 27 % LTV 350 30.9.2024 300 32 250 200 % LTV 150 Expected after debt issuance* (Series B bond
Slide 28: Thank you!
Keystone Thank you!
Keystone Infra — Debt Investor Presentation (December 2024) on 6ix