Slide 1: 1H22 Financial Results
1H22 Financial Results 28 July 2022
Slide 2: Content
Content Address by CEO Financial highlights Appendices
Slide 3: Address by CEO
| Address by CEO CG] Corporation
Slide 4: Vision 2030
Vision 2030 Keppel continues to accelerate the execution of Vision 2030 and enhance resilience amidst a challenging environment, to deliver value for all stakeholders. Driving transformation, Accelerating growth Driving value creation sharpening focus • Developing a leading asset • Strong progress i
Slide 5: Delivering strong performance in 1H22
Delivering strong performance in 1H22 Net profit Interim dividend 66% increase from S$300m for 1H21 Compared to 12.0 cts/share for 1H21 Share buyback Annualised ROE Net gearing Free cash outflow programme 53% increase Unchanged Compared to 57 million shares repurchased in from 5.5% for from 0.68x at
Slide 6: Growing recurring income in line with Vision 2030
Growing recurring income in line with Vision 2030 Recurring income grew 43% yoy in 1H22 Recurring income in 1H22 Others S$11m Connectivity S$202m S$20m REITs & Trust Asset S$81m management S$141mi S$36m S$202mii Infrastructure services 1H21 1H22 S$91m i The recurring income in 1H21 has been restated
Slide 7: Strong progress with asset monetisation
Strong progress with asset monetisation Capital unlocked will be used to fuel organic and inorganic growth plans and reward shareholders. S$3.6bi of asset monetisation announced since Oct 2020. Includes S$355m from Keppel Marina East Desalination Plant which is being monetised through Keppel Infrast
Slide 8: Growing Asia's leading asset management platform
Growing Asia’s leading asset management platform Harnessing Keppel’s strong engineering, project execution and operating capabilities, Asset Management is an increasingly pivotal horizontal that pulls the Group together to hunt as a pack and realise synergies. Accelerating AUM and recurring income g
Slide 9: Growing energy & environment business
Growing energy & environment business Keppel’s business units collaborating to seize opportunities as OneKeppel Keppel Corporation and KIT jointly investing Renewable energy portfolioi European onshore wind energy assets for S$234m ~1.8GW ✓ Expanding sources of stable recurring income Cleantech 600M
Slide 10: Scaling up in renewables, clean energy & decarbonisation solutions
Scaling up in renewables, clean energy & decarbonisation solutions Hydrogen EV Charging Keppel Infrastructure’s earningsi grew 77% yoy • Keppel Electric is the first entity in Singapore to be issued electricity importer licence by Energy Market Authority • Commenced first renewable energy import und
Slide 11: Advancing transformation of Keppel Land into an asset-light urban space solutions provider
Advancing transformation of Keppel Land into an asset-light urban space solutions provider Accelerating landbank monetisation • Pivoting towards real estate-as-a-service with focus on growing recurring income Working to substantially monetise China and Vietnam landbank in the next 1-2 years, includi
Slide 12: Expanding connectivity solutions
Expanding connectivity solutions Data centre business contributed S$25mi in earnings in 1H22 • Announced group's 6th project in China, since entering the market in 2020, expanding footprint to cover China's key data centre hubs in Greater Beijing, Shanghai, Guangzhou and Shenzhen • Continue to work
Slide 13: Improving O&M business
Improving O&M business Keppel O&M and Op Coi were profitable in 1H22 Outlook for O&M sector continues to improve with the increase in oil price Proposed O&M S$4.4b net orderbook as transactions at end-Jun 2022 On track with proposed transactions. S$256m of new orders won in 1H22 Anti-trust filings l
Slide 14: Realisable value from proposed O&M transactions
Realisable value from proposed O&M transactions Value (S$’m) Value per Sharei AssetCoii 4,050 S$2.29 Shares in Combined Entity based on Sembcorp Marine shares’ VWAP 4,874 S$2.75 as at signing dateiii S$500m Cash 500 S$0.28 Realisable Value from Proposed O&M Transactions 9,424 S$5.32 Out-of-Scope Ass
Slide 15: In conclusion
In conclusion Keppel is in the right space, at the right time, to deliver sustainable urbanisation ✓ Climate action and energy transition expected solutions amidst global push to gather pace for net zero. ✓ Energy security considerations will drive demand for sustainable energy infrastructure ✓ Sust
Slide 16: Financial Highlights
| Financial Highlights CG] Corporation
Slide 17: Group Performance
Group Performance • Net profit grew 66% yoy to S$498m Net Profit by Segment • Excluding Discontinued Operationsi, net profit grew 26% yoy to S$434m 600 498 600 300 • Discontinued Operationsi registered net profit of S$64m, reversing 500 500 64 1H21 net loss of S$44m 400 56 56 400 117 • All segments
Slide 18: Multiple Income Streams
Multiple Income Streams Net Profit by Income Type 498 As part of Vision 2030, the 300 64 600 Group will focus on improving 44 3 earnings quality with more 500 20 94 95 recurring income. 111 400 S$m 300 234 139 200 202 100 141 0 - (115) (190) -100 (44) -200 -300 1H21 1H22 18
Slide 19: Energy & Environment
Energy & Environment Energy & Environment Net Profit • Net profit was S$109m, a sharp reversal from 1H21 net loss of S$179m • Continuing Operations net profit was S$45m, compared to net loss 109 of S$135miii in 1H21 64 S$m • Keppel Infrastructure achieved significantly higher profit 106 0 60 • All k
Slide 20: Urban Development
Urban Development • Net profit was lower yoy at S$168m for 1H22 Urban Development Net Profit • Lower contributions from China trading projects, and lower fair value gains on investment propertiesi 279 15 • Absence of gains from enbloc sales of Vietnam and China projects in 12 1H21; partly offset by
Slide 21: Connectivity
Connectivity Connectivity Net Profit • Net profit was lower yoy at S$10m for 1H22, mainly due to absence of gain from disposal of interest in Keppel Logistics (Foshan) in 1H21 27 10 • M1 achieved much higher net profit 20 • Higher mobile and enterprise revenue as M1 continues to expand S$m 34 its en
Slide 22: Asset Management
Asset Management • Net profit rose 32% to S$155m in 1H22 Asset Management Net Profit • Higher fee income arising from successful acquisitions by the REITs & Trust 155 • Higher fair value gains on investment properties and data centres 11 under Keppel REIT and Alpha Data Centre Fund 117 S$m • Absence
Slide 23: Corporate & Others
Corporate & Others Corporate & Others Net Profit • Net profit remained stable at S$56m, despite the absence of distribution income from iGlobe Partners Platinum Fund I in 1H21 56 56 - • Fair value gains were largely from investments in new technology & startups such as Envision AESC Global Investmen
Slide 24: In conclusion
In conclusion 8.4% Sharp 1H22 ROE improvement yoy 0.68x Healthy net gearing S$202 Improved recurring million income Delivered strong financial Guided by Vision 2030, Keppel performance for 1H22 is committed to improving earnings quality and building a sustainable future 24
Slide 25: Appendices
Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 25
Slide 26: Asset monetisation announced by the Group
Vision 2030 Asset monetisation announced by the Group Value Unlocked Value Unlocked No Asset Country No Asset Country (S$m) (S$m) 1 Taicang Xuchang Property China 104.0 51% stake in Keppel Smit Towage Singapore/ 14 135.8 24.01% stake in Business and Maju Maritime Malaysia 2 Thailand 36.0 15 50% stak
Slide 27: Keppel O&M
Energy & Environment Keppel O&M Net Orderbooki Secured new orders worth • Secured S$255m worth of S$256m in 1H22 bareboat charter contracts for 4 • An FPSO module fabrication & jackups with charter periods of integration, an FPSO topside three to five years 5.1 0.2 integration and jumboisation of •
Slide 28: Keppel O&M's Orderbook
Energy & Environment Keppel O&M’s Orderbook Contract Value S$m Gross Net Client For delivery in 2022 1 JU/1 Semi*/3 FPSO Modules Fabrication & Integration*/1 TSHDii TS Offshore/*Name withheld/ /2 LNG Containerships/2 offshore wind farm substations Petrobras/Van Oord/Pasha /Gas Scrubber and BWTs Retr
Slide 29: Keppel Infrastructure
Energy & Environment Keppel Infrastructure Power & Renewables Environment • Keppel Electric is the first entity in Singapore to be issued • Signed non-binding term sheet with electricity importer licence by Energy Market Authority Keppel Infrastructure Trust for proposed sale and purchase of Keppel
Slide 30: Keppel Land
Urban Development Keppel Land • Keppel Land’s home sales were 1,010 units in 1H22, compared Home salesi to 2,650 units in 1H21 Sales value: • Sale of 7,030 overseas units worth ~S$4.1b to be recognised S$2.5b from 3Q22 – 2024 Sales value: 2,650 S$0.7b • i12 Katong retail mall in Singapore opened in
Slide 31: Keppel Land's Landbank
Urban Development Keppel Land’s Landbank Residential Portfolio Commercial Portfolio Quality landbank across key cities in Asia ~48% of commercial GFA under development Vietnam Vietnam China 20% China 25% 33% 44% Singapore 1% ~41,000 ~1.6 million sm homes Singapore of GFA Indonesia 6% 18% Other SEA I
Slide 32: Keppel T&T
Connectivity Keppel T&T • Keppel Data Centre Fund II Data centre portfolioi embarked on a greenfield data Owned by Keppel T&T and Owned by Keppel DC REIT centre development project in private funds Greater Beijing, China Geographical Asia Pacific, Europe Asia Pacific, Europe Presence • Keppel DC REI
Slide 33: M1
Connectivity M1 • M1’s revenue grew 6% yoy to Revenue Customers S$535m in 1H22 • Roaming and prepaid revenues grew with progressive 535 2,276 505 2,118 reopening of economies 236 230 • ARPUi grew across postpaid 160 175 244 256 and fibre broadband segments 11 10 • 2nd largest postpaid customer S$m ‘
Slide 34: Keppel Capital
Asset Management Keppel Capital Keppel Capital’s portfolio of investments Value of listed REITs/Trustii Value of private fundsii Asset classi (S$m) (S$m) Real estate 2,020 177 Data centres 680 185 Infrastructure 518 29 Alternative assetsiii - 189 Total 3,798 i Comprises listed REITs/Trust and privat
Slide 35: Appendices
Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 35
Slide 36: Financial Highlights
Financial Highlights S$m 1H22 1H21 % Change Revenue 3,356 2,888 16 EBITDA 457 346 32 Operating Profit 355 207 71 Profit Before Tax 551 565 (2) Profit from Continuing Operations 434 344 26 Profit/(Loss) from Discontinued Operations 64 (44) n.m.f. Net Profit 498 300 66 EPS (cents) 27.9 16.5 69 - Conti
Slide 37: Revenue by Segment
Revenue by Segment (Continuing Operations) S$m 1H22 1H21 % Change Energy & Environment 2,110 1,315 60 Urban Development 532 909 (41) Connectivity 616 586 5 Asset Management 98 78 26 Subtotal 3,356 2,888 16 Corporate & Others - - - Total 3,356 2,888 16 37
Slide 38: Pre-tax Profit by Segment
Pre-tax Profit by Segment (Continuing Operations) S$m 1H22 1H21 % Change Energy & Environment 59 (128) n.m.f. Urban Development 229 451 (49) Connectivity 24 38 (37) Asset Management 171 135 27 Subtotal 483 496 (3) Corporate & Others 68 69 (1) Total 551 565 (2) n.m.f. denotes No Meaningful Figure 38
Slide 39: Net Profit by Segment
Net Profit by Segment S$m 1H22 1H21 % Change Energy & Environment 45 (135) n.m.f. Urban Development 168 279 (40) Connectivity 10 27 (63) Asset Management 155 117 32 Subtotal 378 288 31 Corporate & Others 56 56 - Continuing Operations 434 344 26 Discontinued Operations 64 (44) n.m.f. Total 498 300 66
Slide 40: Net Profit by Business Unit
Net Profit by Business Unit S$m 1H22 1H21 % Change Keppel Offshore & Marine 21 107 (80) Keppel Infrastructure 123 77 60 Keppel Landi 220 263 (16) Share of SSTEC’s results (3) 12 n.m.f. Keppel Telecommunications & Transportationii 16 41 (61) M1 34 21 62 Keppel Capital 54 61 (11) KCL, Others & Elimina
Slide 41: Net Profit by Business Unit
Net Profit by Business Unit KCL, SSTEC, Keppel Offshore Keppel Keppel Keppel S$m Keppel Land M1 Others & & Marine Infrastructure T&T Capital Elimination Net Profit by BU 21 123 220 16 34 54 30 • Share of - - (3) - - - 3 SSTEC’s results • REITs & Trust - (17) (59) (14) - 89 1 • Private Funds - - (5)
Slide 42: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 30 Jun 2022 31 Dec 2021 Shareholders’ Funds 11,822 11,655 Total Equity 12,568 12,441 Net Debt i 8,604 8,400 i Net Gearing Ratio 0.68x 0.68x ROE 8.4% 9.1% i Net debt and net gearing ratio included lease liabilities 42
Slide 43: Free Cash Flow
Free Cash Flow S$m 1H22 1H21 Operating profit 427 188 Depreciation & other non-cash items (125) 5 Provisions made for stocks, contract assets and doubtful debts 6 130 Working capital changes (146) (396) Interest & tax paid (297) (260) Net cash used in operating activities (135) (333) Investments & c
Slide 44: Financial Information by Segment
Financial Information by Segment 44
Slide 45: Energy & Environment
Energy & Environment S$m 1H22 1H21 % Change Revenue 2,110 1,315 60 EBITDA 71 (259) n.m.f. Operating Profit/(Loss) 55 (275) n.m.f. Profit/(Loss) Before Tax 59 (128) n.m.f. Net Profit/(Loss) from Continuing Operations 45 (135) n.m.f. Net Profit/(Loss) from Discontinued Operations 64 (44) n.m.f. n.m.f.
Slide 46: Urban Development
Urban Development S$m 1H22 1H21 % Change Revenue 532 909 (41) EBITDA 182 411 (56) Operating Profit 168 395 (57) Profit Before Tax 229 451 (49) Net Profit 168 279 (40) 46
Slide 47: Connectivity
Connectivity S$m 1H22 1H21 % Change Revenue 616 586 5 EBITDA 86 142 (39) Operating Profit 23 41 (44) Profit Before Tax 24 38 (37) Net Profit 10 27 (63) 47
Slide 48: Asset Management
Asset Management S$m 1H22 1H21 % Change Revenue 98 78 26 EBITDA 50 59 (15) Operating Profit 48 58 (17) Profit Before Tax 171 135 27 Net Profit 155 117 32 48
Slide 49: Appendices
Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 49
Slide 50: Sales Achieved - Overseas
Keppel Land Sales Achieved - Overseas Units Sold in Sales Value in Latest Key Projects Location 1H 2022 1H 2022 Avg. Selling Price China (RMB’m) (RMB’psm) Upview Shanghai 85 624 ~51,300 Seasons Residences Wuxi 163 411 ~21,500 North Island Site (UPED) 175 175 ~9,300 Tianjin Waterfront Residences II 2
Slide 51: Residential Landbank - Singapore
Keppel Land Residential Landbank - Singapore Remaining Remaining Total GFA Total Units Units Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Corals at Keppel Bay* 100% 99-yr 509,998 366 366 340 26 84,627 Reflections at Keppel Bay* 100% 99-yr 2,081,738 1,129 1,129 1,118 11 61,
Slide 52: Residential Landbank - China
Keppel Land Residential Landbank - China Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Sheshan Riviera 99.4% 90,109 217 112 100 117 36,224 Shanghai Upview 15% 163,460 1,561 1,561 1,561 - - Waterfront Residences 100% 315,117
Slide 53: Residential Landbank - Other Overseas
Keppel Land Residential Landbank - Other Overseas Remaining Remaining Total GFA Total Units Units Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Vietnam Saigon Sports City 100% 780,878 4,261 - - 4,261 451,905 Palm City 42% 495,900 3,042 1,586 954 2,088 214,658 Empire City
Slide 54: Residential Launch Readiness – China
Keppel Land Residential Launch Readiness – China Units Ready to Launch Project Location 2H 2022 2023 2024 Waterfront Residences 54 4 - Wuxi Seasons Residences 337 796 - Serenity Villas 14 - - North Island Site Tianjin 449 1,738 2,637 Waterfront Residences II 41 126 126 Hill Crest Residences Kunming
Slide 55: Residential Launch Readiness – Other Overseas
Keppel Land Residential Launch Readiness – Other Overseas Units Ready to Launch Project Location 2H 2022 2023 2024 Vietnam Saigon Sports City Velona - - 804 Natura - - 864 Riviera Point ^ Phase 1A 7 - - The View 13 - - The Infiniti 11 - - Phase 2 - 399 38 Empire City HCMC Narra Residences 16 - - Emp
Slide 56: Expected Completion for Launched Projects
Keppel Land Expected Completion for Launched Projects Total Units Launched as Units Sold as Units Remaining Expected Projects/Phases Launched Location Units at end-Jun 2022 at end-Jun 2022 as at end-Jun 2022 Completion China North Island Site (UPED) 1,232 414 217 1,015 1H2024 Tianjin Waterfront Resi
Slide 57: Expected Completion for Upcoming Projects
Keppel Land Expected Completion for Upcoming Projects No. of Units Expected to be Completed Projects/Phases to be launched Location 2H 2022 2023 2024 China Waterfront Residences - 54 - Wuxi Seasons Residences - 722 - Sub-Total - 776 - Vietnam Celesta Avenue HCMC - 43 - Indonesia Wisteria Jakarta - -
Slide 58: Commercial Projects - Under Development
Keppel Land Commercial Projects - Under Development Expected Projects under Development Location Stake GFA (sm) Development Cost ^ Completion Singapore Keppel Towers Singapore 100% 59,200 TBC 2024 China Park Avenue Central Shanghai 99% 113,220 RMB 3.8b 2024 Seasons City Tianjin 100% 80,300 TBC TBC V
Slide 59: Commercial Projects - Completed
Keppel Land Commercial Projects - Completed Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore I12 Katong Singapore 100% 27,140 19,800 2011 * China Trinity Tower 30% 70,000 48,600 2015 International Bund Gateway 29.8% 74,130 62,010 2018 Shanghai Keppel Greenla
Slide 60: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR