Slide 1: Presentation to Investors
Presentation to Investors Hong Kong 25-26 March 2019
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Shaping a Sustainable Future
Shaping a Sustainable Future Keppel is an eco-system of companies working together to deliver solutions for sustainable urbanisation. Global economic growth Digitalisation, Solutions for AI & robotics Sustainable Urbanisation Ageing Disruptive technologies population & business models Climate Urbani
Slide 4: Keppel's Eco-System
Keppel’s Eco-System Ramping up Current Engines Offshore & Property Infrastructure Investments Marine Enlarging capital base Keppel Capital Building New Growth Keppel Urban Engines Harnessing operational strengths Solutions New Engines for Growth Gas Value Chain Data Centres Smart Cities of the Futur
Slide 5: Creating & Capturing Sustainable Value
Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE • Newbuilds, repair & upgrading DESIGN projects & • Residential projects BUILD • WTE technology packages Revaluation • Offshore & Marine Operation & Divestment Fee-based • Property OWN STABILISE TRUSTS • Infrastruct
Slide 6: Operating & Financial Highlights
Operating & Financial Highlights 6
Slide 7: Group Financial Performance
Group Financial Performance Key highlights Net profit • ROE was 8.3% 944 S$944m 815 • EVA was S$252m FY 2018 net profit up 382% from S$196m for • Free cash inflow of S$515m S$m 619 i 944 FY 2017 in FY 2018 vs S$1,802m in FY 2017 196 0 15.0 cts/share FY 2017 FY 2018 • Net gearing was 0.48x at end-201
Slide 8: Offshore & Marine
Offshore & Marine • Secured ~S$1.7b worth of new contracts in 2018, up 42% from 2017, and includes LNG and scrubber projects worth over S$600m • Received repeat order for a harsh environment semi rig worth ~US$425m from Awilco in March 2019 • LNG solutions gain traction • 1st converted FLNG vessel,
Slide 9: Property
Property • Sale of ~4,440 units and 5 projects equivalent to ~11,500 units sold en-bloc in 2018 • Sale of 8,410 overseas units worth ~S$2.7b recognisable from 2019-21 • Focused on generating higher returns through robust capital recycling • Acquisition of sites in Chengdu, Nanjing and Sino-Singapore
Slide 10: Focused on Returns
Focused on Returns Keppel Land aims to be a multi-faceted property company with one of the highest returns in Asia. Asset distribution - Segment Residential landbank - Age Residential landbank - Units 69,170 65,547 Others 63,022 Hotels & Resorts 5% Less than 5 2% years old 49,992 32% S$14b ~50,000 U
Slide 11: Infrastructure
Infrastructure • Energy & environmental infrastructure and infrastructure services • Secured ~S$180m worth of contracts across Singapore, Australia and Europe in 2018 • Keppel Marina East Desalination Plant 65% completed; Hong Kong Integrated Waste Management Facility design & engineering on track T
Slide 12: Growing Data Centre Portfolio
Growing Data Centre Portfolio Data centre portfolio Net lettable area (sq ft) 22 data centres Spanning 14 cities in Asia-Pacific & Europe 1.7 mil 1.4 mil 1.4 mil ~S$2.7b 0.6 mil 0.9 mil Combined portfolio valuei of data centres completed and under development 2014 2015 2016 2017 2018 Data centre inn
Slide 13: Investments
Investments Keppel Capital • Announced acquisitions of over S$2.0b by the REITs, Trust and private funds under management in 2018 • Closed Alpha Asia Macro Trends Fund III at ~US$1.1b, 10% above target • Expanding into new asset classes and markets The Investments Division is • Growth initiatives pu
Slide 14: Urban Development
Urban Development Sino-Singapore Tianjin Eco-City • Progressing well with sale of 3 residential land plots for RMB 3.4b in 2018 Keppel Urban Solutions • Entered MOUs with Envision and Wuxi Government to develop smart IoT city in Wuxi, China • Partnering Envision, Microsoft and ST Engineering to expa
Slide 15: Growing B2C Businesses
Growing B2C Businesses Telecommunications • Driving business transformation at M1 • Creating synergies through collaboration with Keppel’s businesses and tapping M1’s 2.2 million customer base Electricity/Gas Retail • Secured over 50,000 household customers in initial phases of Singapore’s Open Elec
Slide 16: Transforming to Deliver
Transforming to Deliver The building blocks of our transformation as a provider of solutions for sustainable urbanisation are in place. We will focus on executing and delivering on our growth initiatives to create value for all stakeholders. Strengthening Key Verticals Unleashing Synergies Seizing N
Slide 17: Appendix Financial Highlights
Appendix Financial Highlights 17
Slide 18: Key Figures
Key Figures S$m FY 2018 FY 2017 % Change FY 2017i % Changei Revenue 5,965 5,964 - 5,964 - Operating Profit 1,043 801 30 801 30 Net Profit 944 196 382 815 16 EPS (cents) 52.0 10.8 381 44.8 16 EVA 252 (839) nm (220) nm Free Cash Flow 515 1,802 (71) 1,802 (71) Increase of Increase of ROE 8.3% 1.7% 6.9%
Slide 19: Revenue by Segments
Revenue by Segments S$m FY 2018 % FY 2017 % % Change Offshore & Marine 1,875 32 1,802 30 4 Property 1,340 22 1,782 30 (25) Infrastructure 2,629 44 2,207 37 19 Investments 121 2 173 3 (30) Total 5,965 100 5,964 100 - 19
Slide 20: Net Profit by Segments
Net Profit by Segments (Excluding one-off global resolution & related costs) S$m FY 2018 % FY 2017 % % Change Offshore & Marine (109) (11) (207) (25) (47) Property 938 99 650 80 44 Infrastructure 169 18 134 16 26 Investments (54) (6) 238 29 nm Total 944 100 815 100 16 20
Slide 21: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,885 102.3 103.8 1,846 1,525 84.0 685 726 38.0 39.9 405 22.3 944 52.0 457 414 363 25.3 22.9 20.0 784 815 135 43.2 44.8 7.4 143 127 6.9 226 7.9 12.4 347 406 397 225 265 19.2 22.3 21.9 12.4 14.6 246 13.6 205 171 11.3 9.4 357 339 360 252 337 19.8 18.7 19.8
Slide 22: ROE & Dividends
ROE & Dividends 19.5% 18.8% 14.2% 48 i 40 8.3% 34 6.9% 6.9% ii 30 20 22 iii 15 10 12 12 8 8 2013 2014 2015 2016 2017 2018 ROE Interim Dividend Full-Year Dividend i Includes dividend in specie of ~9.5cts/share ii Excludes one-off financial penalty from Keppel O&M’s global resolution with criminal aut