Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (August 2022)
39 slides from Keppel Infrastructure Trust's investor presentation, Aug 30, 2022
Slide 1: Investor Presentation
Investor Presentation 30 August 2022
Slide 2: Important Notice
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 to purchase or subscribe for any units (“U
Slide 3: Outline
Outline Overview 4 Key investment highlights 7 Appendix 17 Constituent of: Awards and Accreditations: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 3
Slide 4: Overview
Overview Borkum Riffgrund 2, Germany
Slide 5: Largest SGX-listed diversified infrastructure business trust
Largest SGX-listed diversified infrastructure business trust Providing exposure to the resilient and growing global infrastructure sector S$6.1b AUM1 12 evergreen businesses 10 mature economies Portfolio of scale providing global and concession assets Focused on investment grade jurisdictions access
Slide 6: Growing the Energy Transition and Environmental Service sectors
Growing the Energy Transition and Environmental Service sectors Expanding presence to AA and AAA-rated countries in Europe and North Asia European Onshore Wind Platform1 BKR2 – German Offshore Wind Farm1 EMKH – Integrated Waste Platform1 Description ▪ 258MW operating onshore wind assets in ▪ 465MW o
Slide 7: Key investment highlights
Key investment highlights EMKH, South Korea
Slide 8: Investment rationale
Investment rationale ▪ Strong sectoral megatrends underpin portfolio ~30% growth in 1 Transformative acquisitions that align with KIT’s growth strategy ▪ Well-balanced mix of infrastructure businesses and assets in developed markets with best-in-class partners AUM to S$6.1bn1 723 MW ~1.3GW2 2 Growin
Slide 9: Transformative acquisitions that align with KIT's growth strategy
1 Transformative acquisitions that align with KIT’s growth strategy Strong sectoral megatrends underpin portfolio Transformative acquisitions Exposure to the global green infrastructure sector with growth potential ▪ Strategic entry into the European renewable energy sector with investments in windf
Slide 10: Transformative acquisitions that align with KIT's growth strategy
1 Transformative acquisitions that align with KIT’s growth strategy Diversified global portfolio of infrastructure businesses and assets 2H 2022 Jun 2022 Energy Transition and Environmental Services Environmental Services Jun 2022 Environmental Services European Onshore Wind Platform Jun 2022 Energy
Slide 11: Growing KIT's exposure to green infrastructure segments
2 Growing KIT’s exposure to green infrastructure segments Benefiting from secular tailwinds of a circular economy and global decarbonization roadmap Generational megatrends Net-Zero Global Waste Carbon Taxes towards sustainable assets to >140 countries currently considering With rapid population gro
Slide 12: Strengthens cash flow resilience: European wind farms
3 Strengthens cash flow resilience Strategically located wind farms in the mature renewable energy markets across Europe Fäbodliden Högaliden Exposure to attractive power price outlook in Europe Sweden 79.2 MW 107.5 MW COD 2015 Norway COD 2021 Cash flow visibility with attractive FiT regime and floo
Slide 13: Strengthens cash flow resilience: South Korea waste platform
3 Strengthens cash flow resilience Rare opportunity to acquire a waste management platform of scale in South Korea Strong operational Best-in-class operations Businesses strategically located in key industrial regions track record Korea Environment Development 95% >340 operating days/ annum in the (
Slide 14: Diversify into new sectors and markets in Europe and South Korea
3 Strengthens cash flow resilience Diversify into new sectors and markets in Europe and South Korea Diversification by Asset (%) Diversification by Geography (%) As of 30 June 2022 Pro forma Post Acquisitions1 As of 30 June 2022 Pro forma Post Acquisitions1 Environmental Distribution & Services, 13%
Slide 15: Accretive acquisitions
4 Accretive acquisitions Deliver new long-term income streams, supporting sustainable DIPU growth Pro-forma FFO1 Pro-forma DIPU1 (S$m) (S$ cents per unit) ▲44.6% 287.5 4.22 270.8 ▲9.6% 16.7 0.31 72.0 3.91 198.8 3.85 0.06 FY2021 Acquisitions Pro-forma Aramco Gas Pro-forma FY2021 Acquisitions Pro-form
Slide 16: Reinforces KIT's commitment to ESG targets
5 Reinforces KIT’s commitment to ESG targets Driving long-term value creation through sustainable investments; supporting global climate agenda Renewables as a percentage Critical component of Reduce emissions intensity1 of KIT’s AUM the circular economy Increase exposure of renewable Contributing t
Slide 17: Appendix
Appendix Lista, Norway
Slide 18: European Onshore Wind Platform overview
European Onshore Wind Platform overview
Slide 19: KIT's maiden renewable energy investment
KIT’s maiden renewable energy investment Sponsored by FORAS and investing alongside leading European asset managers ▪ Jointly investing with KLP and MEAG to acquire a 49% stake in a diversified portfolio of three operating onshore wind energy assets in Norway and Sweden (Initial Portfolio) from FORA
Slide 20: Attractive portfolio of windfarm assets across the Nordics and UK
Attractive portfolio of windfarm assets across the Nordics and UK 258MW of operating projects + 1.3GW of pipeline potential1 Högaliden Initial portfolio 5-year exclusive right to Fäbodliden FORAS’ eligible pipeline 107.5 MW Projects with combined NO4 COD 2021 No development or 79.2 MW capacity of 25
Slide 21: FORAS – a strong and reputable operating partner
FORAS – a strong and reputable operating partner with a visible and extensive pipeline available to the Fundco investors ▪ Asset developer and owner with a long-term cradle to grave mindset; projects designed with long term ownership in mind to minimize lifetime total costs ▪ Excellent track record
Slide 22: Beachhead platform in a mature renewable energy market
Beachhead platform in a mature renewable energy market Supported by strong sector tailwinds, in line with KIT’s growth strategy Nordics Electricity Demand (TWh) 562 ▪ Nordics and the UK are among the most mature renewables markets globally 13 +19.8% 28 ▪ Positive outlook for wind and other renewable
Slide 23: German Offshore Wind Farm overview
German Offshore Wind Farm overview
Slide 24: Deepen exposure in renewables with first offshore wind investment
Deepen exposure in renewables with first offshore wind investment KIT’s second investment in renewables, reinforcing strategy to grow the Energy Transition segment ▪ Jointly investing with Keppel Corporation to acquire a 25%1 stake in Borkum Riffgrund 2 (BKR2), a 465MW operating German offshore wind
Slide 25: Well-located windfarm backed by an attractive FiT regime
Well-located windfarm backed by an attractive FiT1 regime Strong and consistent wind strength and resource availability in the North Sea ▪ High wind resource availability in the North Sea: high capacity2 factor of >40% with low variability of <10% between P90 and P503 ▪ Located next to Wadden Sea wh
Slide 26: Ørsted a strong operating partner with proven track record
Ørsted a strong operating partner with proven track record Partnering with a highly regarded developer and operator in the offshore wind sector ▪ Ørsted is a leading player in offshore wind power industry globally with over 30 years of experience ▪ Asset to benefit from operational efficiencies, giv
Slide 27: FiT regime and guaranteed price floor provide cash flow visibility
FiT regime and guaranteed price floor provide cash flow visibility Stable power price outlook in the long term with projected capture price above price floor ▪ BKR2 operates under the German EEG 2014 market premium mechanism with attractive FiT and guaranteed floor price till 2038 ▪ Legislation proh
Slide 28: Favourable tailwinds supporting positive renewable energy outlook
Favourable tailwinds supporting positive renewable energy outlook Driven by decarbonisation and the German government’s push to increase offshore wind capacity Demand drivers Supply drivers ▪ Electricity demand to grow by 2.3% CAGR from ▪ Strong regulatory support to increase 2022 to 2050, supported
Slide 29: EMKH overview
, KEPPEL INFRASTRUCTURE TRUST EMKH overview
Slide 30: Proposed acquisition of a leading waste platform in South Korea
Proposed acquisition of a leading waste platform in South Korea Acquisition marks KIT’s expansion into South Korea ▪ Jointly investing with Keppel entities to acquire Eco Management Korea (EMKH), with KIT holding 52% 52% Investor Holdco majority interest ▪ EMKH is a leading integrated waste manageme
Slide 31: EMKH: South Korea's leading integrated waste platform
EMKH: South Korea’s leading integrated waste platform Defensive business backed by blue chip customers Solid Liquid Landfill 3rd largest Largest 4th largest incineration capacity in South waste oil refining player in South landfill capacity in South Korea, Korea (404 tons/day) Korea (154 tons/day) a
Slide 32: Strategic expansion into a market supported by strong tailwinds
Strategic expansion into a market supported by strong tailwinds Supported by continued waste production and limited growth in incineration and landfill capacity Increased Waste Production Waste Treatment Capacity 2.5% CAGR 4.9% CAGR 630 647 584 598 614 614 630 647 573 584 598 534 545 545 573 497 534
Slide 33: High barriers of entry favouring incumbent players with scale
High barriers of entry favouring incumbent players with scale Sustainable competitive advantage creates favourable macro environment for existing players 1 Increasingly stringent environmental policies/regulations ✓ Strong operational expertise ✓ Strong funding capability 2 Challenges in obtaining b
Slide 34: Leveraging proprietary expertise across the Keppel Group
Leveraging proprietary expertise across the Keppel Group Draw on the Group’s development and operational track record to value add and grow EMKH Keppel Infrastructure Trust ▪ Over a decade of track record in managing Proven and patented WTE technologies WTE and water treatment facilities: owns used
Slide 35: Investment in Aramco Gas Pipelines Company
Investment in Aramco Gas Pipelines Company
Slide 36: Diversified portfolio with maiden investment in the Middle East
Diversified portfolio with maiden investment in the Middle East Completed the investment in Aramco Gas Pipelines Company ▪ Part of a global consortium to acquire a 49% stake in Aramco Gas Pipelines Company, which holds a 20-year lease-and-lease-back agreement over the usage rights of Aramco’s gas pi
Slide 37: Invest in a strong and growing business
Invest in a strong and growing business Supported by favourable gas demand dynamics ▪ Saudi Arabia as a stable and attractive investment destination Natural Gas Demand Projections by Sector KSA is world’s most improved economy in Doing Business1 (billion cubic meters)1 Top 10 Jumped 30 8 140 Global
Slide 38: Robust contractual framework with downside protection
Robust contractual framework with downside protection Enhances resiliency of KIT’s portfolio 1 Lease period of 20 years provides long- term cash flow visibility 5 2 Minimum Well-structured volume governance commitment framework from Aramco No CAPEX & OPEX 4 3 risks as Aramco Quarterly tariff retains
Slide 39: Thank You
Thank You www.kepinfratrust.com Connect with us on:
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