Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — 2Q FY2016 Earnings Presentation
24 slides from Keppel Infrastructure Trust's earnings presentation, Oct 19, 2015
Slide 1: Keppel Infrastructure Trust 2Q FY16 Results Presentation
Not for distribution in the United States Keppel Infrastructure Trust 2Q FY16 Results Presentation 19 October 2015
Slide 2: Disclaimer
Disclaimer 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 in Keppel
Slide 3: Financial snapshot
Financial snapshot DPU (S Cents) Distributable Cash Flows (S$’m) 1.05 ^ 1.98 ^ 48.9 32.9 33.8 0.93 1.71 1.64 13.0 0.82 2Q FY16 2Q FY15 YTD YTD 2Q FY16 2Q FY15 YTD YTD 2Q FY16 2Q FY15 2Q FY16 2Q FY15 NAV Per Unit (S Cents) Gearing* 35.9 52% 12.3 32% 30 Sep 15 31 Mar 15 30 Sep 15 31 Mar 15 ^ Pre and p
Slide 4: Distributable cash flows generated from…
Distributable cash flows generated from… S$’m 2Q FY16 2Q FY15 Explanations City Gas 7,310 11,172 • Decreased revenue with lower fuel prices • The time lag in the adjustment of gas tariffs to reflect actual fuel cost for City Gas • Higher interest expenses with rate hikes Concessions 16,989 1,977 • I
Slide 5: …a diversified portfolio of core infrastructure assets…
…a diversified portfolio of core infrastructure assets… 1H FY16 EBITDA (1) Total Assets as at 30 Sep 2015 KMC Corporate 27% 5% Concessions KMC 18% 45% Concessions Basslink S$85.8m 17% S$4.3b 31% City Gas 11% City Gas 25% Basslink 21% (1) Excludes Trust / corporate expenses. Long term, regular and pr
Slide 6: … which has fulfilled their obligations Steady performance by all assets
… which has fulfilled their obligations Units Business updates City Gas • Customer base grew by ~5% from about 705,000 as at the end of 2Q FY15 to about 740,000 as at the end of 2Q FY16 • Achieved 100% plant availability Concessions • Consist of Senoko WTE, Tuas WTE, SingSpring and Ulu Pandan NEWate
Slide 7: Regular and stable distributions
Regular and stable distributions DPU for 2Q FY16 Historical DPU (S cents) S cents/unit • DPU of 0.93 Singapore cents declared for 2.5 2Q FY16 1.98 2 • Book closure date: 27 October 2015 1.5 • Payment date: 20 November 2015 1.05 1 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 (1) 1QFY15 2QFY15 3QFY15 4QFY15 Pr
Slide 8: Larger balance sheet after acquisitions
Larger balance sheet after acquisitions S$’m 30 Sep 15 31 Mar 15 Total assets 4,306 1,770 • Total assets and liabilities increased due to completion of the KMC and Crystal Total liabilities 2,671 1,571 acquisitions Borrowings 1,802 1,144 • Higher borrowings as KMC drew down S$700m in loans as part o
Slide 9: Sustainable gearing
Sustainable gearing As at Sep 2015 Total Excluding • Sustainable gearing backed by S$’m Basslink Cash 406 363 Long term contracts expiring between 2024 and Borrowings 1,802 1,103 2046 Net debt 1,395 741 Credit worthy customers Total assets 4,306 3,381 and City Gas’ large and stable customer base
Slide 10: Prudent capital management
Prudent capital management Debt Overview Debt Breakdown • Blended average interest rate of 4-5% Debt repayment profile − Singapore average: 3-4% > 5 yrs < 1 yr 1.9% 1.5% − Australian average: 6-7% − ~83% of loans are hedged • Weighted average term to expiry of ~4.5 years − ~92% of KIT’s loans are du
Slide 11: Uniquely positioned to deliver long term value and growth
Uniquely positioned to deliver long term value and growth 1 Largest Singapore infrastructure focused business trust 2 Diversified portfolio of core infrastructure assets 3 Long term contracts with credit worthy customers / large and stable customer base 4 Generate long term, regular and predictable
Slide 12: Appendix I: Additional financial information
Appendix I: Additional financial information 11
Slide 13: City Gas’ results
City Gas’ results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change S$'000 S$'000 % S$'000 S$'000 % Revenue 78,332 98,949 (20.8) 160,944 197,524 (18.5) Other income 390 265 47.2 647 590 9.7 Other losses - net (83) (43) 93.8 (110) (95) 15.2 Expenses Fuel and electricity costs (33,508) (50,162) (33.2) (65
Slide 14: Concessions’ results
Concessions’ results 2Q FY16 2Q FY15 Proforma^ Change 1H FY16 1H FY15 Proforma^ Change 2Q FY15 1H FY15 S$'000 S$'000 S$'000 % S$'000 S$'000 S$'000 % Revenue 26,058 9,152 25,400 2.6 40,226 18,031 39,817 1.0 Other income 229 5 218 4.9 314 19 315 (0.2) Expenses Fuel and electricity costs (3,999) (2,883
Slide 15: KMC’s results
KMC’s results 2Q FY16 S$'000 Revenue 32,565 Other income 372 Other losses - net (37) Expenses Depreciation and amortisation (18,879) Operation and maintenance costs (5,067) Staff costs - Finance costs (1) (26,008) Other operating expenses (1,453) Total expenses (51,407) Loss before tax (18,507) Tax
Slide 16: Basslink’s results
Basslink’s results 2Q FY16 2Q FY15 Change 1H FY16 1H FY15 Change A$'000 A$'000 % A$'000 A$'000 % Revenue 14,790 15,564 (5.0) 30,618 36,842 (16.9) Other income 239 333 (28.2) 485 626 (22.6) Other gains/(losses) - net 595 (444) N/M 1,025 (2,893) N/M Expenses Fuel and electricity costs (79) (81) (2.8)
Slide 17: 2Q FY16 distributable cash flow reconciliation by asset
S$'000 City Gas Concessions Basslink KMC Others Group (Loss)/profit after tax (1,728) 1,303 (4,287) (18,506) 18,489 (4,730) Add/(less): Reduction in concession / lease receivables - 12,142 - - - 12,142 Non-cash Finance Cost 95 8 1,287 116 93 1,600 Other non-cash items 27 226 (1,136) 746 100 (38) Adj
Slide 18: 2Q FY15 distributable cash flow reconciliation by asset
S$'000 City Gas Concessions Basslink Others Group Profit/(loss) after tax 1,621 1,315 (8,220) 4,470 (813) Add/(less): Reduction in concession / lease receivables - 2,113 - - 2,113 Non-cash Finance Cost 95 8 2,724 144 2,970 Other non-cash items 179 - (513) 206 (129) Adjustment for cash tax paid / def
Slide 19: 1H FY16 distributable cash flow reconciliation by asset
S$'000 City Gas Concessions Basslink KMC Others Group (Loss)/profit after tax (755) 2,762 (7,684) (18,506) 22,652 (1,530) Add/(less): Reduction in concession / lease receivables - 17,621 - - - 17,621 Non-cash Finance Cost 189 16 2,605 116 185 3,112 Other non-cash items 40 226 (2,156) 746 167 (977) T
Slide 20: 1H FY15 distributable cash flow reconciliation by asset
S$'000 City Gas Concessions Basslink Others Group Profit/(loss) after tax 4,511 2,580 (13,784) 9,410 2,718 Add/(less): Reduction in concession / lease receivables - 4,203 - - 4,203 Non-cash Finance Cost 186 17 6,266 340 6,809 Other non-cash items 147 - 958 172 1,277 Adjustment for cash tax paid / de
Slide 21: Outstanding loans
Outstanding loans Entity Outstanding Maturity Repayment amounts (S$’m) KIT Corporate 142.3 Aug 2017 Bullet* City Gas 178.0 Feb 2019 Bullet* SingSpring 84.1 Oct 2024 Amortising Basslink 709.5 (A$710.9) Nov 2019 Amortising* Senoko WTE 3.5 Nov 2015 Bullet* KMC 700 Jun 2020 Bullet* * To be refinanced up
Slide 22: Appendix II: Overview of KIT
Appendix II: Overview of KIT 21
Slide 23: Asset, Business, Customer, Contract Expiry, Revenues
Asset Business Customer Contract Expiry Revenues Senoko Plant 2,100 tonnes/day NEA 2024 Principally availability waste incineration concession in payment Singapore Tuas DBOO Plant 800 tonnes/day NEA 2034 Principally availability waste incineration concession in payment Singapore Ulu Pandan Plant 148
Slide 24: KIT’s shareholding structure
KIT’s shareholding structure Keppel Temasek Public 18.2% 15.9% 65.9% 100% Trust Deed KIFM KIT 100% 51% 100% 100% 100% 100% City Gas Senoko WTE KMC(3) CityDC CityNet Basslink 51% 51% 100% 100% Tuas WTE Basslink City OG(1) DC One(4) Telecoms 100% Ulu Pandan NEWater 70% SingSpring(2) (1) Osaka Gas Sing
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