Keppel Ltd. · SGX:BN4

Keppel — Retail Shareholders' Day hosted by Securities Investors Association (Singapore) 2017

27 slides from Keppel's conference presentation, Aug 16, 2017

  1. Slide 1: Retail Shareholders' Day

    Retail Shareholders’ Day Hosted by Securities Investors Association (Singapore) 16 August 2017 1

  2. 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

  3. Slide 3: Address by CEO

    Address by CEO ‘ Cry] Corporation

  4. Slide 4: Providing Solutions for Sustainable Urbanisation

    Providing Solutions for Sustainable Urbanisation Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world’s sustainable urbanisation needs through key businesses in Offshore & Marine, Property,

  5. Slide 5: Tapping Growth in Sustainable Urbanisation

    Tapping Growth in Sustainable Urbanisation Sustainable urbanisation will provide decades of secular growth for the Keppel Group. 6,800 Rising demand for: 5,800 • Energy • Infrastructure 4,800 • Clean Urban Population (mil) Environments 3,800 • Homes, Offices & Retail Properties • Connectivity 2,800

  6. Slide 6: Shaping Keppel's Future

    Shaping Keppel’s Future Recent milestones Building strong business verticals (2013 - 2015) • Integrated energy and environmental businesses under Keppel Infrastructure • Privatised Keppel Land Driving growth and synergy through asset management (2016) • Integrated the Group’s asset managers under Ke

  7. Slide 7: Shaping Keppel's Future

    Shaping Keppel’s Future Recent milestones Bolstering core competencies (2016 - 2017) • Acquired LETOURNEAU™ offshore rig business • Expanded into e-commerce fulfilment with Courex stake • Re-organised Keppel O&M’s operations into New Builds and Conversions & Repairs Expanding into new markets (2017

  8. Slide 8: Anchored on a Multi-Business Strategy

    Anchored on a Multi-Business Strategy 1H17 net profit  Resilient operations backed by diverse businesses serving S$421m, up 1% yoy sustainable urbanisation needs  Further growing contributions from 416 421 21 Property, Infrastructure and 41 Investments divisions 163  Focused on expanding stable 1

  9. Slide 9: Multiple Earnings Streams

    Multiple Earnings Streams  Recurring income constituted 36% of 1H17 net profit 27% REITs & Trust 22% Asset Management S$212m S$150m 1H17 net profit 50% 36% S$421m Infrastructure Services and 23% Operations & Maintenance Rental & Charter 27% S$59m Others 14% 1% Recurring Income Project-based Revalua

  10. Slide 10: Harnessing Strengths, Multiplying Synergies

    Harnessing Strengths, Multiplying Synergies Core Strengths: Building Strong Verticals + Collaboration: SYNERGY Offshore & Property Infrastructure Investments Technology Engineering Marine & Project & Innovation Management Capital Operating & Management Maintenance Townships Data Centres Gas Value Ch

  11. Slide 11: Creating & Capturing Sustainable Value

    Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation Operation & Divestment Fee-based • Offshore & Marine • Property OWN STABILISE TRUSTS • Infrastruct

  12. Slide 12: Fueling Growth through Asset Management

    Fueling Growth through Asset Management Aim to double Keppel Capital’s AUM over next the five years. Harnessing synergies to: Private Funds  increase recurring Property  Among SGX’s fee income largest Pan-Asian commercial REITs  Manages private funds  improve returns for real assets through asse

  13. Slide 13: Seizing Opportunities in Sustainable Urbanisation

    Seizing Opportunities in Sustainable Urbanisation Offshore & Marine Property Gas value chain Rising home-ownership • Liquefaction & regasification aspirations in Asia • Transportation & bunkering • Residential pipeline of >62,000 homes Specialised vessels Prime commercial portfolio Re-purposing offs

  14. Slide 14: Address by CFO

    Address by CFO 14 VGyt5] Corporation

  15. Slide 15: 1H 2017 Financial Performance

    1H 2017 Financial Performance S$m 1H17 1H16 % Change Revenue 2,802 3,368 (17) EBITDA 439 626 (30) Operating Profit 326 512 (36) Profit Before Tax 564 563 - Net Profit 421 416 1 EPS (cents) 23.2 22.9 1 15

  16. Slide 16: Offshore & Marine

    Offshore & Marine 1H17 net profit  Rightsizing efforts and associates’ i Operations Associates contributions helped Keppel O&M to break even 156 31  YTD new contracts of ~S$300m, comprising non-drilling solutions S$m 125  Net orderbookii of S$3.4b 1 as at end-Jun 2017 21 0 (20) 1H16 1H17 1H17 S$m

  17. Slide 17: Property

    Property 1H17 net profit  Sold 2,470 homes in 1H17, Property trading Property investment up 15% yoy Hotels/Resorts REIT  Steady sales in China of 1,810 198 200 units 38 25 8  390 units sold in Vietnam, S$m 35 up ~4x yoy 175 127  220 units sold in Singapore, (2) (8) up ~16% yoy 0 1H16 1H17 1H17 

  18. Slide 18: Infrastructure

    Infrastructure 1H17 net profit  Higher sales achieved in the power Energy, environment & infrastructure services Data centres and gas businesses REIT & Trust Logistics and others  Gain on divestment of GE Keppel Energy Services 57 41 12  Keppel DC Singapore 4 achieved 1 TOP and has been injected

  19. Slide 19: Investments

    Investments 1H17 net profit  Stable earnings from asset Asset management Others management  Alpha DC Fund secured 163 capital commitments of close to US$500m 130  Stronger contribution from S$m 21 Sino-Singapore Tianjin Eco-City (8) 29 33 land sales 0 1H16 1H17 1H17 S$m 1H16 1H17 % Change Revenue

  20. Slide 20: Net Profit & EPS

    Net Profit & EPS Net profit (S$m) EPS (Cents) 2,237 124.8 619 1,846 1,885 34.5 102.3 103.8 1,525 685 726 84.0 346 38.0 39.9 19.3 405 22.3 521 29.1 457 414 363 25.3 22.9 20.0 784 43.2 4Q: 4Q: 143 7.9 347 406 397 3Q: 21.9 3Q: 225 421 19.2 22.3 23.2 12.4 751 2Q: 2Q: 41.9 2Q: 2Q: 205 161 11.3 8.9 357 33

  21. Slide 21: ROE & Dividend

    ROE & Dividend Dividend in specie Dividend in specie ~28.6cts/share ~9.5cts/share Plus Plus 26.4% 19.5% 18.8% 14.2% 45.0 48.0 40.0 34.0 6.9% 6.6% 20.0 18.0 10.0 12.0 12.0 8.0 8.0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 1H 2017 ROE Interim Dividend Full-Year Dividend 21

  22. Slide 22: Q&A

    Q&A 22 Gye) | Corporation

  23. Slide 23: Additional Information

    Additional Information 23 iG y-t)] Corporation

  24. Slide 24: Key Financial Highlights

    Key Financial Highlights S$m FY16 FY15 % Chg 1H17 1H16 % Chg Revenue 6,767 10,296 (34) 2,802 3,368 (17) Operating Profit 795 1,514 (47) 326 512 (36) Net Profit 784 1,525 (49) 421 416 1 EPS 43.2cts 84.0cts (49) 23.2cts 22.9cts 1 Free Cash 576 (694) n.m. 237 (262) n.m. Inflow/(Outflow) Annualised ROE

  25. Slide 25: Revenue by Segment

    Revenue by Segment S$m FY16 % FY15 % 1H17 % 1H16 % Offshore & Marine 2,854 42 6,241 60 932 33 1,538 46 Property 2,035 30 1,823 18 804 29 972 29 Infrastructure 1,744 26 2,037 20 988 35 794 23 Investments 134 2 195 2 78 3 64 2 Total 6,767 100 10,296 100 2,802 100 3,368 100 25 25

  26. Slide 26: Net Profit by Segment

    Net Profit by Segment S$m FY16 % FY15 % 1H17 % 1H16 % Offshore & Marine 29 4 482 32 1 - 156 37 Property 620 79 661 43 200 47 198 48 Infrastructure 99 13 197 13 57 14 41 10 Investments 36 4 185 12 163 39 21 5 Total 784 100 1,525 100 421 100 416 100 26 26

  27. Slide 27: Keppel is in the business of sustainable urbanisation

    Keppel is in the business of sustainable urbanisation. We drive collaboration across business verticals to create and capture value from all parts of the Group. 27 27

Keppel — Retail Shareholders' Day hosted by Securities Investors Association (Singapore) 2017 on 6ix