Slide 1: Presentation to Investors
Presentation to Investors HONG KONG 30-31 August 2016 1
Slide 2: Disclaimer
Disclaimer This release 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 regul
Slide 3: Solutions for Sustainable Urbanisation
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, Infrastruc
Slide 4: Keppel's Vision 2020
Keppel’s Vision 2020 Financial People • Net profit target • Strong succession pipeline • Sustainable ROE • Tapping global talent pool • PE ratio target • High employee satisfaction • Higher recurring income • Institutional quality balance sheet Stakeholders Process • Zero fatalities, zero audit fail
Slide 5: Harnessing Strengths
Harnessing Strengths 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 Chain 5
Slide 6: Scaling the Value Chain (moving to the right)
Scaling the Value Chain (moving to the right) The world is changing; business models must also evolve from asset heavy to asset light and high value adding businesses. An example from the data centre industry: Wholesale Retail Managed Managed Real Estate Development Cloud Colocation Colocation Hos
Slide 7: 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
Slide 8: Fueling Growth through Asset Management
Fueling Growth through Asset Management The Group will boost its capital recycling platform and expand its capital base with co-investors. Harnessing synergies to: Private Funds increase recurring Property Among SGX’s fee income largest Pan-Asian commercial REITs Manages 6 property improve r
Slide 9: Data Centre Fund
Data Centre Fund The Alpha Data Centre Fund harnesses synergies across the Group’s business verticals to create sustainable value with capital efficiency. Keppel Keppel Keppel Keppel Capital T&T Land Infrastructure Fund management Development & Power & cooling services operational services solutions
Slide 10: Anchored on a Multi-Business Strategy
Anchored on a Multi-Business Strategy Resilient operations supported by 1H 2016 Net Profit rightsizing and prudent investments in new capabilities 757 Stronger contributions from 96 Property: 120 Improved home sales in China and Vietnam, riding on S$m 165 416 25 urbanisation trends 41 194 Ov
Slide 11: Robust Earnings Streams
Robust Earnings Streams Net Profit by Income Type RIDs contributed an average of 23% to annual net profit since 2010 757 Focused on growing stable 272 recurring income for the S$m 416 long term 179 20 178 306 218 1H 2015 1H 2016 Project-based* Recurring Revaluations, Major Impairments & Divestme
Slide 12: Staying Resilient Through Cycles
Staying Resilient Through Cycles Restructured Keppel Energy and Keppel Integrated Offshore & Marine Property Infrastructure Investments Group net profit Engineering to form Established Keppel Keppel Infrastructure Infrastructure Trust (KIT), Listed Keppel S$m then K-Green Trust DC REIT 2,300
Slide 13: We are staying the course on our multi-business strategy
We are staying the course on our multi-business strategy, driving collaboration across our verticals for synergy to create and capture higher value from all parts of Keppel. 13
Slide 14: Additional Slides: Financial Highlights
ADDITIONAL SLIDES: FINANCIAL HIGHLIGHTS 14
Slide 15: Key Figures
Key Figures S$m FY15 FY14 % Chg 1H16 1H15 % Chg Revenue 10,296 13,283 (22) 3,368 5,377 (37) Operating Profit 1,514 2,373 (36) 512 812 (37) Net Profit 1,525 1,885 (19) 416 757 (45) EPS 84.0cts 103.8cts (19) 22.9cts 41.7cts (45) EVA 648 1,778 (64) 9 262 (97) Free Cash Flow (694) 729 n.m (262) (316) n.
Slide 16: Revenue by Segments
Revenue by Segments S$m FY15 % FY14 % 1H16 % 1H15 % Offshore & Marine 6,241 61 8,556 64 1,538 46 3,507 65 Property 1,926 19 1,729 13 972 29 709 13 Infrastructure 2,058 20 2,934 22 794 23 1,047 20 Investments 71 - 64 1 64 2 114 2 Total 10,296 100 13,283 100 3,368 100 5,377 100 16
Slide 17: Net Profit by Segments
Net Profit by Segments S$m FY15 % FY14 % 1H16 % 1H15 % Offshore & Marine 481 32 1,040 55 156 37 376 49 Property 701 46 482 26 194 47 165 22 Infrastructure 207 14 320 17 41 10 120 16 Investments 136 8 43 2 25 6 96 13 Total 1,525 100 1,885 100 416 100 757 100 17
Slide 18: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 2,237 124.8 1,946 619 1,846 1,885 109.4 34.5 102.3 103.8 1,525 844 685 726 47.4 84.0 346 38.0 39.9 4Q: 4Q: 19.3 4Q: 4Q: 405 22.3 521 3Q: 3Q: 29.1 3Q: 406 457 414 22.9 3Q: 363 22.8 25.3 20.0 2Q: 2Q: 2Q: 384 347 406 397 416 19.2 22.3 21.9 22.9 21.6 751 2Q:
Slide 19: ROE & Dividend
ROE & Dividend Annual dividend payout stayed at above 40% of net profit over the past 13 years. ROE (%) & Dividend (Cents) Distribution in specie Distribution in specie Distribution in specie ~20.9cts/share ~28.6cts/share ~9.5cts/share Plus 29.1% Plus Plus 27.2% 26.4% 25.3% 19.5% 18.8% 45.0 14.2% 43