Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — SGX-UBS REIT / Infrastructure Corporate Day 2019
26 slides from Keppel Infrastructure Trust's conference presentation, Nov 14, 2019
Slide 1: SGX-UBS REIT / Infrastructure Corporate Day
SGX-UBS REIT / Infrastructure Corporate Day Melbourne & Sydney 14 – 15 November 2019
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 • Corporate Overview • Competitive Strengths • Appendix 3
Slide 4: Corporate Overview
Corporate Overview Ixom (Australia)
Slide 5: Overview of Keppel Infrastructure Trust
Overview of Keppel Infrastructure Trust Portfolio of highly strategic businesses and assets providing industrial chemicals, utilities, Company Overview power and telecoms infrastructure ▪ The largest diversified Business Trust listed in Singapore with a portfolio of strategic infrastructure business
Slide 6: Overview of Keppel Infrastructure Trust
Overview of Keppel Infrastructure Trust Assets by Type (%) (as at 30 September 2019)(1) 9M 2019 Highlights(1) 11.7 19.3 0.4 $5.1bn Total Assets 17.6 10.0 $149.9m Distributable Cash Flows 40% increase compared to 9M 2019 16.1 24.9 2.79 cents Distribution per Unit City Gas DC One Basslink Ixom KMC Was
Slide 7: Business Sectors
Business Sectors Diversified Business Trust with a Strategic Portfolio of Infrastructure and Infrastructure-Like Businesses and Assets Distribution & Network Energy Waste & Water Strategic infrastructure assets with Stable and resilient infrastructure assets anchored by concession contracts that are
Slide 8: Portfolio Summary
Portfolio Summary 1 8 SingSpring City Gas SINGAPORE AUSTRALIA & NEW ZEALAND Desalination Plant ▪ Sole supplier of town gas in Singapore 5 1 3 ▪ 1 of 3 Desalination plants in ▪ Customer base of more than 850,000 Singapore residential, commercial and industrial ▪ Responsible for meeting the water cust
Slide 9: Strong Visibility of Recurring Cash Flows Supported by Creditworthy Counterparties
Strong Visibility of Recurring Cash Flows Supported by Creditworthy Counterparties % of distributable Businesses/Assets cash flows (9M 2019)(1) Counterparty Highlights More than 850,000 residential, City Gas 22.4% commercial and industrial ✓ Sole producer and retailer of town gas in Singapore custom
Slide 10: Competitive Strengths
Competitive Strengths Keppel Seghers Ulu Pandan NEWater Plant (Singapore)
Slide 11: Competitive Strengths
Competitive Strengths 2 Provides essential 1 Singapore-listed infrastructure-focused products and services to investment vehicle underpinned by a customers large and well-diversified portfolio 7 Experienced board and management 3 Balanced portfolio comprising team with strong alignment in both conce
Slide 12: Singapore-Listed Infrastructure-Focused Investment Vehicle Underpinned by a Large and Well-Diversified Portfolio
1 Singapore-Listed Infrastructure-Focused Investment Vehicle Underpinned by a Large and Well-Diversified Portfolio KIT’s distributable cash flows are diversified across the three segments of Distribution & Network, Energy and Waste & Water Australia and Singapore New Zealand Distribution & Network E
Slide 13: Provides Essential Products and Services to Customers
2 Provides Essential Products and Services to Customers Distribution & Network Energy Waste & Water • City Gas is the sole supplier of town gas in • The Keppel Merlimau Cogen (KMC) plant is • KIT owns two of four waste incineration plants Singapore. City Gas serves over 850,000 a competitive gas-fir
Slide 14: Balanced Portfolio Comprising Both Concessions-Based Assets and Going-Concern Businesses
3 Balanced Portfolio Comprising Both Concessions-Based Assets and Going-Concern Businesses with Long-Term Growth Prospects Ixom City Gas Basslink Ixom and City Gas are evergreen businesses with recurring ◼ Long-term recurring cash flows with ◼ Long-term recurring cash flows with ◼ Service agreement
Slide 15: Proven Track Record of Delivering High Quality, Reliable and Safe Operations
4 Proven Track Record of Delivering High Quality, Reliable and Safe Operations Distribution City Gas ▪ Continued to maintain 100% production availability in 2018 and for 9M 2019 ✓ & Network ▪ Continues to deliver on its performance targets, supported by ongoing operational Ixom excellence, working c
Slide 16: Long-term Stable Cash Flows Supported by AAA Singapore Government-Linked Off-takers
5 Long-term Stable Cash Flows Supported by AAA Singapore Government- Linked Off-takers and Creditworthy Counterparties Combination of long-term contracts with high credit quality off-takers along with high barriers to entry ensure a visible path for long-term cash flows and growth going forward Port
Slide 17: Prudent Leverage, Diversified Sources of Funding and Non-Recourse Asset Level Debt
6 Prudent Leverage, Diversified Sources of Funding and Non-Recourse Asset Level Debt Targets an optimal cost of capital supported by a capital structure that is sustainable across economic cycles Recourse/Non-Recourse Debt Group Consolidated Net Debt/Assets Recourse Capital Strives for primarily non
Slide 18: Experienced Board and Management Team with Strong Alignment in Delivering Long-Term Value
7 Experienced Board and Management Team with Strong Alignment in Delivering Long-Term Value Management Team Matthew Pollard 28yrs Eric Ng 18yrs Chief Executive Officer Head, Finance 1 Significant industry experience ✓ Responsible for determining the strategy of KIT and ✓ Responsible for KIT's financ
Slide 19: Regular and Stable Distributions
Regular and Stable Distributions Stable DPU (S cents) FY 2016 FY 2017 FY 2018 9M 2019 3.72 3.72 3.72 2.79 Comparative Yields(1) 8.0% 7.0% 6.0% 4.0% 4.2% 4.0% 1.7% 1.7% 2.0% 0.0% 5 Yr SG Govt 10 Yr SG Govt STI FTSE ST REIT KIT bond bond Index 1. Sources: Bloomberg and Monetary Authority of Singapore.
Slide 20: Driving Sustainable Growth
Driving Sustainable Growth KIT’s long-term strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distributions and steady capital appreciation Anchored By a growing portfolio of strategic infrastructure businesses and assets across a broad range of h
Slide 21: Appendix
Appendix Tuas Waste-to-Energy Plant (Singapore)
Slide 22: Three-pronged Growth Strategy
Three-pronged Growth Strategy Stable cash flows and Keppel Acquisition organic growth Synergy Strategy The Trustee-Manager actively The Trustee-Manager, as part of the Keppel Group, is The Trustee-Manager acquires and manages its existing portfolio to able to draw upon the relationships, networks, i
Slide 23: Keppel Infrastructure Trust Structure
Keppel Infrastructure Trust Structure Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage the The Trustee-Manager can leverage scale and resources of a larger asset the Sponsor‘s expertise and track management platform record in this industry ~82%
Slide 24: Portfolio Overview: Energy Distribution & Network
Portfolio Overview Description Customer and contract terms Primary source of cash flows Energy Distribution & Network Fixed margin per unit of gas sold, with Over 840,000 commercial and residential Sole producer and retailer of piped town gas fuel and electricity costs passed through customers to co
Slide 25: Comparison Between Business Trusts, REITs and Listed Company
Comparison Between Business Trusts, REITs and Listed Company Business Trust REIT Listed Company Legislation Regime • Business Trusts Act • Code on Collective Investment Scheme • Companies Act • Not a separate legal entity • Not a separate legal entity • Created by a trust deed • Created by a trust d
Slide 26: Thank You
Thank You For more information, please visit www.kepinfratrust.com Ixom (Australia)
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