Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — CitySpring Infrastructure Trust — Shareholder Meeting (July 2014)
35 slides from Keppel Infrastructure Trust's shareholder meeting presentation, Jul 30, 2014
Slide 1: Annual General Meeting - Presentation
Annual General Meeting - Presentation 30 July 2014 0
Slide 2: Disclaimer
Disclaimer This presentation is not and does not constitute or form part of, and is not made in connection with, any offer, invitation or recommendation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any units of CitySpring Infrastructure Trust ("CitySpring") and ne
Slide 3: Content
Content 1 Overview 2 Businesses 3 Financial Results & Unit Performance 4 Pursuing Growth 2
Slide 4: Providing Essential Services
Providing Essential Services • City Gas – delivering town gas to 690,000 customers all over Singapore • SingSpring – delivering desalinated water daily to the PUB • CityNet – managing 7 SingTel Exchanges and the island-wide fibre network for Singapore’s Next Gen-National Broadband Network • Basslink
Slide 5: Corporate Structure
Corporate Structure Temasek Public 37.4% 62.6% 100.0% Trustee- Trust Deed Manager 100.0% 70.0% 100.0% 100.0% City Gas SingSpring Basslink CityNet 51.0% 100.0% Trust Deed City-OG Gas NetLink Basslink Energy Telecoms Trust (1) Services 100.0% Wholly owned company Partially owned company Managed busine
Slide 6: Expanding Our Portfolio
Expanding Our Portfolio JV with Shimizu Corporation to build a S$130 million data centre for long-term lease to a MediaCorp subsidiary. June 2014 DataCentre One Shimizu Corporation is a leading architectural, civil engineering and general contracting firm. Awarded a mandate by SingTel to manage the
Slide 7: Group Borrowings
Group Borrowings Total borrowings and net debt have come down over time Our objective on leverage is to ensure that our businesses have sufficient financial flexibility to meet their capital expenditure and operational needs Maturity of CitySpring’s and City Gas’ loans extended to August 2017
Slide 8: Content
Content 1 Overview 2 Businesses 3 Financial Results & Unit Performance 4 Pursuing Growth 7
Slide 9: City Gas
City Gas Meter Transmission / Sale of Production of Reading, Distribution of Retail Natural Gas Town Gas Billing & Town Gas Collection Piped Gas Gas Network City Gas City Gas SP Services Importers Operator Sole producer and retailer of town gas in Singapore Stable cash flow from a wide customer base
Slide 10: City-OG Gas Energy Services
City-OG Gas Energy Services Energy Audit Natural Gas Supply and Retail Industrial Users Energy Solutions Retailer of natural gas and provider of energy services to industrial users 9
Slide 11: SingSpring
SingSpring Singapore’s Water Policy – “Four Taps Approach” Seawater Desalination Process 1. Local Catchment Water 2. Imported Johor Water WPA SingSpring Intake of Desalination PUB Consumer Seawater Plant 3. NEWater – Recycled Water O&M 4. Desalinated Water Long-term, regular and predictable cashflow
Slide 12: Basslink Interconnector
Basslink Interconnector Basslink is the only subsea electricity transmission cable, connecting the states of Victoria and Tasmania in Australia Basslink was constructed to allow Tasmania to participate in the National Electricity Market (“NEM”) and to provide power stability Victorian Network Ta
Slide 13: Basslink Telecoms
Basslink Telecoms Basslink Telecoms provides broadband capacity to telecoms carriers and service providers between Hobart, Tasmania and Melbourne, Victoria The only alternative provider of telecommunication connectivity between Tasmania and mainland Australia, and is seen as highly strategic 12
Slide 14: CityNet
CityNet 100% 100% CityNet Trust Deed (Trustee-Manager) NetLink Trust Management Fee • Manages telecoms assets transferred from SingTel and OpenNet 13
Slide 15: Content
Content 1 Overview 2 Businesses 3 Financial Results & Unit Performance 4 Pursuing Growth 14
Slide 16: Revenue and Cash Earnings
Revenue and Cash Earnings Revenue (S$ millions) Cash Earnings(1) (S$ millions) 95.1 524 521 481 388 424 70.7 54.3 60.0 53.3 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 (1) Cash earnings is defined as EBITDA adjusted for cash and non-cash items, less cash interest, cash tax, upfront financing f
Slide 17: FY14 Cash Earnings Lower Than FY13
FY14 Cash Earnings Lower Than FY13 Factors contributing to the lower cash earnings are: - The time lag in the adjustment of gas tariffs to reflect actual fuel cost for City Gas - Lower contributions from Basslink 16
Slide 18: Group Cash Earnings
Group Cash Earnings FY14 FY13 S$'000 S$'000 Cash Earnings 60,023 95,061 Applied as follows: Principal Repayment of Subsidiary Entity Loan (10,443) (9,479) Distribution to Unitholders (49,820) (49,820) Net Balance (240) 35,762 Unrestricted group cash and bank balances as at 31 March 2014 was S$259.7
Slide 19: City Gas - Business Highlights
City Gas - Business Highlights City Gas achieved total cash earnings of S$45.7 million for FY14 Its customer base grew by about 3% from 670,000 as at the end of FY13 to about 690,000 as at the end of FY14 The average monthly town gas sales volume has increased by 2.1% to City Gas 139,595,000 k
Slide 20: SingSpring - Business Highlights
SingSpring - Business Highlights Achieved total cash earnings of S$14.2 million for FY14 Achieved 99.44% availability for the financial year and met all the terms SingSpring under the Water Purchase Agreement with PUB Awarded BizSAFE Star accreditation by Workplace Safety and Health Council in
Slide 21: Basslink - Business Highlights
Basslink - Business Highlights Achieved cash earnings of A$7.9 million (approximately S$9.3m) for FY14 CRSM(1) was negative A$13.4 million (approximately S$15.7m) for FY14 Basslink Achieved cumulative availability of 97.53% for the 12 months ended 31 December 2013 and 99.63% for the three mont
Slide 22: Sustainable Distributions
Sustainable Distributions Group Cash Earnings (S$ millions) Total Distribution (S$ millions) 95.1 70.7 65.1 60.0 56.7 53.3 54.3 47.7 49.8 49.8 39.4 41.2 34.4 34.3 FY08* FY09 FY10 FY11 FY12 FY13 FY14 FY08* FY09 FY10 FY11 FY12 FY13 FY14 • CitySpring distributes to unitholders out of Group Cash Earning
Slide 23: Unit Price (1 Apr 2013 – Jun 2014)
Unit Price (1 Apr 2013 – 30 Jun 2014) 110% Rebased to 100% as at 1 April 2013 + 1.1% 100% - 1.6% - 7.1% 90% 80% Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14Mar 14 Apr 14 May 14 Jun 14 CIT FTSE STI Index FTSE STI REIT Index Source: Bloomberg 22
Slide 24: Yield Comparison
Yield Comparison CIT Yield versus Other Investments 8.0% 6.9% 7.0% 6.0% 5.6% DPU @ 3.28 Singapore cents 5.0% 4.6% yield spread over Yield 4.0% 10 -yr SG govt bond 3.3% 3.0% 2.5% 2.3% 2.0% 1.2% 1.0% 0.3% 0.0% CIT Yield 10-YR Singapore 5-YR Singapore Bank 12-month CPF Ordinary A/C STI Yield FTSE ST RE
Slide 25: Content
Content 1 Overview 2 Businesses 3 Financial Results & Unit Performance 4 Pursuing Growth 24
Slide 26: CitySpring Portfolio
CitySpring Portfolio 2007 2008 2009 2010 2011 2012 2013 2014 IPO New Biz New Biz New Biz New Biz New Biz City Gas Basslink CityNet City Gas- CityNet DataCentre Telecoms (Initial TM Osaka JV (Expanded TM One (2) SingSpring role) role) (1) Acquisition Basslink Consulting Basslink (1) CityNet expanded
Slide 27: Deepening Our Presence in the Telecoms Sector
Deepening Our Presence in the Telecoms Sector • Telecoms infrastructure is a key sector of focus for CitySpring, which has existing businesses in Basslink Telecoms and CityNet • CitySpring’s aim is to build up a portfolio of telecoms businesses that will generate long- term, regular and predictable
Slide 28: DataCentre One
DataCentre One CitySpring in JV with Shimizu Corporation to build a S$130 million data centre for long-term lease to MediaCorp subsidiary The investment is subject to Unitholders’ approval at an EGM to be convened 27
Slide 29: Looking Ahead
Looking Ahead • As a provider of essential services, we remain focused on ensuring the stability of our operations and maximising the efficiency of our assets to generate steady and sustained cash flow over the long term • We will continue to place utmost emphasis on our financial stability and capa
Slide 30: Appendix
—_—_—_ CITYSPRING Infrastructure Trust Appendix
Slide 31: Group Consolidated Income Statement
Group Consolidated Income Statement 30
Slide 32: Group Consolidated Balance Sheet
Group Consolidated Balance Sheet As at 31 Mar 14 As at 31 Mar 13 S$'000 S$'000 ASSETS Cash and bank deposits 304,327 202,364 Derivative financial instruments 3,859 - Trade and other receivables 68,554 64,924 Inventories 20,040 18,096 Intangibles 388,486 404,463 Finance lease receivables 148,090 156,
Slide 33: Group Consolidated Cash Flow Statement
Group Consolidated Cash Flow Statement FY14 FY13 Actual Actual S$'000 S$'000 Operating activities Profit before tax 1,891 25,650 Non-cash adjustments 114,131 126,758 Operating cash flow before working capital changes 116,022 152,408 Changes in working capital (32,771) (46,535) Net cash generated fro
Slide 34: Group Cash Earnings
—_—_—_ CITYSPRING Group Cash Earnings Infrastructure Trust FY14 FY13 Actual Actual $$'000 $$'000 EBITDA 117,599 147,047 Addi(less): Other cash receipts 6,507 12,455 Net finance costs (52,565) (57,480) Payment of loan upfront fee (1,915) - Fair value loss/(gain) on DFI (1,722) 5,412 Other non-cash fl
Slide 35: Thank You
Thank You Website: www.cityspring.com.sg General enquiries: enquiries@cityspring.com.sg Investor relations: investors@cityspring.com.sg 34
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