Slide 1: 2H & FY21 Financial Results
2H & FY21 Financial Results 27 January 2022
Slide 2: Content
Content 1. Address by CEO 2. Financial highlights 3. Appendices
Slide 3: 1. Address by CEO
1. Address by CEO 3
Slide 4: Accelerating Vision 2030 execution
Accelerating Vision 2030 execution Keppel made strong progress in executing Vision 2030, despite volatile market conditions and operational challenges imposed by COVID-19. Driving business Good progress Making Driving transformation & in asset sustainability integration & earnings growth monetisatio
Slide 5: Driving business transformation organically & inorganically
Driving business transformation organically & inorganically Proposed KOM-SMM combination • Discussions progressing steadily, due diligence ongoing, working towards signing definitive agreements by end-1Q22 Proposed SPH acquisition • Pending SPH calling for a Scheme Meeting where the Keppel Scheme wi
Slide 6: Strong earnings growth: sharp reversal from loss in FY20
Strong earnings growth: sharp reversal from loss in FY20 FY21 net profit crossed S$1b for first time since 2015. • All segments performed better yoy for FY21, contributing to ROE of 9.1%. • 2H21 net profit also improved strongly yoy to S$723m from S$31m. FY21 total dividend • Includes proposed final
Slide 7: Growing recurring income in line with Vision 2030
Growing recurring income in line with Vision 2030 Higher recurring income underpinned by stronger contributions from asset management and REITs & Trust. Recurring income grew 33% yoy in FY21 Recurring income in FY21 Others Connectivity S$8m S$35m S$292m S$220m REITs & Trust Asset S$142m management S
Slide 8: Strong progress in asset monetisation
Strong progress in asset monetisation • Capital unlocked will be used to fuel organic and inorganic growth plans and reward shareholders. Announced monetisation Since Oct 2020 via Keppel- managed REITs & Trust 40.7% On track to exceed S$2.9 S$5b target by billion end-2023 via third parties 59.3%
Slide 9: Keppel O&M performed well, seizing opportunities in energy transition
Keppel O&M performed well, seizing opportunities in energy transition and focusing on execution • Op Coi achieved net profit of S$66m for FY21. S$3.5b new orders secured Projected utilisation & dayrates in FY21 for modern jackups Modern jackup rig US$140k S$5.1b net orderbook ii, 39% utilisation & d
Slide 10: Seizing opportunities in renewables, clean energy, decarbonisation & environmental solutions
Seizing opportunities in renewables, clean energy, decarbonisation & environmental solutions Investing in renewables platforms & Actively pursuing capabilities opportunities such as • Acquiring 51% stake in Cleantech Renewable importing renewable Assets, which has over 600MW of total capacity power
Slide 11: Driving Keppel Land's transformation into an asset-light urban space solutions provider
Driving Keppel Land’s transformation into an asset-light urban space solutions provider Keppel Land completed monetisation of 8 projects in 2021 with total proceeds of ~S$1.9b and net gains of over S$450mi. Home sales improved 46% Opened/reopened malls in Advancing sustainable urban yoy to 4,870 uni
Slide 12: Expanding connectivity solutions offerings
Expanding connectivity solutions offerings • COVID-19 further drove demand for digital connectivity solutions. • M1’s 5G SA network rollout progressing well, 5G SA achieved 50% outdoor coverage in Singapore network/ ICT • 2nd largest postpaid customer base in Singapore 5G • Enterprise business reven
Slide 13: Assets under management grew 14% yoy in 2021
Assets under management grew 14% yoy in 2021 • Keppel Capital raised total equity of about S$3.5b in FY21. • Completed around S$5.5b in acquisitions and divestments in FY21. Assets under management Asset management fees iii by asset class i grew ~29% yoy for FY21 S$42b Infrastructure 16.2% S$233m Re
Slide 14: Investments into new technology & startups bearing fruit
Investments into new technology & startups bearing fruit • Gaining early access to high value IP and technology, as well as innovation teams in areas aligned to Vision 2030. Fund investments Investments have yielded attractive gains Early-mid stage Prop Tech Enterprise & China Tech growth technology
Slide 15: Strong progress in other non-financial Vision 2030 targets
Strong progress in other non-financial Vision 2030 targets • Sustainability will increasingly be a central part of Keppel’s purpose and corporate identity. Advancing Driving Developing sustainability goals innovation human capital • Committed to halve Scope 1 & • Digitalisation • Scored 84% in 2021
Slide 16: In conclusion
In conclusion • Guided by Vision 2030, Keppel will emerge stronger, more relevant, and on a faster growth path. KEY ATTRIBUTES & ENABLERS Sustainability Asset light Technology >S$1 FY21 net profit, sharp yoy S$2.9 Assets monetised 33.0 Strong dividend growth for FY21 vs billion improvement billion s
Slide 17: CEO quote on Vision 2030 roadmap
“We’ve made bold strides forward in our Vision 2030 roadmap, and are confident of achieving most of our targets by 2025.” Loh Chin Hua CEO, Keppel Corporation 17
Slide 18: 2. Financial highlights
2. Financial highlights 18
Slide 19: Group Performance
Group Performance • Net profit grew to S$1,023m, reversing FY20 net loss of S$506m Net Profit by Segment • All segments registered improved performance • ROE improved to 9.1% in FY21 vs negative 4.6% in FY20 1,023 309 • Net gearing was 0.68x as at end-Dec 2021 vs 0.91x as at 301 S$m end-Dec 2020 280
Slide 20: Multiple Income Streams
Multiple Income Streams Net Profit by Income Type As part of Vision 2030, the 1,023 Group will focus on improving 61 315 earnings quality with more Recurring Income recurring income. 317 S$m EPC/Development for Sale 111 436 163 79 Revaluation 220 292 0 (51) FV gain/(loss) on investments (398) Profit
Slide 21: Energy & Environment
Energy & Environment Energy & Environment Net Loss (ex. impairment related to KrisEnergy) • Net loss was S$414m in FY21, compared to a net loss of S$1,181m in FY20 • Excluding S$318m impairment related to KrisEnergy, the 144 103 segment’s net loss for FY21 would have been S$96m 0 (77) (122) • Offsho
Slide 22: Urban Development
Urban Development • Net profit grew 74% yoy to S$763m for FY21 Urban Development Net Profit • Underpinned by enbloc sales and higher contributions from China and Vietnam trading projects, partly offset by impairment 763 provision for a hotel in Myanmar, and lower fair value gains on 32 investment pr
Slide 23: Connectivity
Connectivity Connectivity Net Profit • Significantly higher net profit of S$64m in FY21 • Data centre performance improved 64 13 26 • Gains from disposals of Frankfurt data centre and stake in Cloud Engine (Beijing) Network Technology 57 • Does not include S$87m in data centre earnings for FY21 S$m
Slide 24: Asset Management
Asset Management • Higher net profit of S$301m in FY21, despite the absence of gain Asset Management Net Profit from reclassification of Keppel Infrastructure Trust in FY20 • Higher fee income arising from successful acquisitions and 301 divestments by the REITs & Trust and private funds, and 280 2
Slide 25: Corporate & Others
Corporate & Others Corporate & Others Net Profit • Net profit of S$309m, as compared to net loss of S$56m in FY20 309 • Fair value gains largely from investments in new technology 61 & startups such as Envision AESC Global Investment, Fifth Wall, Vertex Ventures, Wavemaker • Distribution income from
Slide 26: In conclusion
In conclusion 9.1% Sharp FY21 ROE improvement yoy 0.68x Healthy net gearing S$1.75 Positive free cash inflow billion Delivered strong financial Guided by Vision 2030, Keppel performance for FY21 with is committed to improving all segments performing earnings quality and building better yoy a sustain
Slide 27: 3. Appendices
3. Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 27
Slide 28: Asset Monetisation Across the Group
Vision 2030 Asset Monetisation Across the Group No Asset Country Consideration (S$m) 1 Taicang Xuchang Property China 104.0 2 24.01% stake in Business Online Public Company Thailand 36.0 3 Chengdu Hilltop Development China 250.4 4 30% stake in Dong Nai Waterfront City Vietnam 115.9 5 Keppel Bay Towe
Slide 29: Keppel O&M
Energy & Environment Keppel O&M Net Orderbooki Secured new orders worth S$3.5b • Signed global framework in FY21 agreement with Ørsted on S$5.1b as at end-2021, up potential future offshore 55% yoy • An FPSO vessel, 2 FPSO modules substation projects fabrication & integration, 2 FSRU 5.1 conversions
Slide 30: Keppel O&M's Orderbook
Energy & Environment Keppel O&M’s Orderbook Contract Value S$m Gross Net Client For delivery in 2022 Clearwater/Fecon/TS Offshore/*Name 5 JUs/1 Semi*/3 FPSO Modules Fabrication & Integration*/3 Dredgers withheld/Petrobras/Van Oord/Pasha /2 LNG Containerships/2 offshore wind farm substations Hawaii/Ø
Slide 31: Keppel Infrastructure
Energy & Environment Keppel Infrastructure Power & Renewables Environment New Energy • Signed exclusive framework • Hong Kong IWMF i and Tuas • Signed MOU with BCPG to agreement with Electricite Du Nexus IWMF i are 40.6% and collaborate on low-carbon, Laos as part of the Lao PDR- 22.7% completed res
Slide 32: Keppel Land
Urban Development Keppel Land • Keppel Land’s home sales grew 46% yoy to 4,870 units in FY21, Home salesi bolstered by stronger performance across all key markets • Singapore home sales improved, underpinned by The Reef at Sales value: S$4.0b King’s Dock Sales value: S$2.5b • Home sales in China gre
Slide 33: 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 Singapore Myanmar Singapore • Opened Seasons City’s Indonesia 1% India 6% 5% retail mall in the Tianjin 17% 7% Eco-City, and reopene
Slide 34: Sino-Singapore Tianjin Eco-City
Urban Development Sino-Singapore Tianjin Eco-City Residential land sales in the Tianjin Eco-City by SSTEC Selling Price Sales Value Land Area GFA Based on Based on Plot Date Plot Ratio (RMB’m) (Hectare) (sm) Land Area GFA (RMB’m/hectare) (RMB/sm) Plot 17 Mar 2021 1,512 20.28 1.5 299,590 75 5,047 Plo
Slide 35: Keppel T&T
Connectivity Keppel T&T Data centres Data centre portfolio • Inked MOU to study the feasibility of Owned by Keppel DC Owned by Keppel T&T and a liquid hydrogen supply chain from REIT private funds Western Australia to Singapore and Geographical potentially Japan with industry Asia Pacific, Europe As
Slide 36: M1
Connectivity M1 • Advancing 5G initiatives Revenue Customers • M1 teams up with Workforce Singapore to enable a 5G future-ready workforce 1,074 1,096 2,157 2,077 • Postpaid customer base grew 6% yoy to 235 355 over 1.7 million 389 228 238 221 • ARPU i grew yoy in the prepaid segment, 27 21 while rem
Slide 37: Keppel Capital
Asset Management Keppel Capital • Keppel Capital raised total equity of about S$3.5b in FY21 Keppel Capital’s portfolio of investments Value of listed Value of • Achieved final close of Keppel Asia Infrastructure Fund Asset classi REITs/Trustiii private fundsiii and Keppel Data Centre Fund II (S$m)
Slide 38: 3. Appendices
3. Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 38
Slide 39: Financial Highlights
Financial Highlights S$m 2H21 2H20 % Change FY21 FY20 % Change Revenue 4,948 3,392 46 8,625 6,574 31 EBITDA 920 370 149 1,305 422 209 Operating Profit 710 157 352 898 8 >500 Profit/(Loss) Before Tax 819 102 >500 1,335 (255) n.m.f. Net Profit/(Loss) 723 31 >500 1,023 (506) n.m.f. EPS (cents) 39.7 1.7
Slide 40: Revenue by Segment
Revenue by Segment S$m 2H21 2H20 % Change FY21 FY20 % Change Energy & Environment 3,470 1,919 81 5,574 3,943 41 Urban Development 720 764 (6) 1,629 1,275 28 Connectivity 674 633 6 1,260 1,220 3 Asset Management 84 75 12 162 135 20 Subtotal 4,948 3,391 46 8,625 6,573 31 Corporate & Others - 1 (100) -
Slide 41: Pre-tax Profit by Segment
Pre-tax Profit by Segment S$m 2H21 2H20 % Change FY21 FY20 % Change Energy & Environment (292) (309) (6) (469) (1,251) (63) Urban Development 621 373 66 1,072 720 49 Connectivity 48 16 200 86 29 197 Asset Management 192 34 465 327 304 8 Subtotal 569 114 399 1,016 (198) n.m.f. Corporate & Others 250
Slide 42: Net Profit by Segment
Net Profit by Segment S$m 2H21 2H20 % Change FY21 FY20 % Change Energy & Environment (235) (223) 5 (414) (1,181) (65) Urban Development 484 223 117 763 438 74 Connectivity 37 13 185 64 13 392 Asset Management 184 22 >500 301 280 8 Subtotal 470 35 >500 714 (450) n.m.f. Corporate & Others 253 (4) n.m.
Slide 43: Net Profit by Business Unit
Net Profit by Business Unit S$m 2H21 2H20 % Change FY21 FY20 % Change Keppel Offshore & Marine (213) (235) (9) (106) (1,194) (91) Keppel Infrastructure 60 88 (32) 137 294 (53) Keppel Land i 510 153 233 773 370 109 Share of SSTEC’s results 2 38 (95) 14 67 (79) Keppel Telecommunications & 95 31 206 13
Slide 44: Net Profit by Business Unit
Net Profit by Business Unit Keppel KCL, SSTEC, Keppel Keppel Keppel S$m Offshore & Keppel Land M1 Others & Infrastructure T&T Capital Marine Elimination Net Profit by BU (106) 137 773 136 57 109 (83) • Share of SSTEC’s - - 14 - - - (14) results • REITs & Trust - (34) (47) (75) - 161 (5) • Private Fu
Slide 45: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 31 Dec 2021 31 Dec 2020 Shareholders’ Funds 11,655 10,728 Total Equity 12,441 11,156 Net Debt i 8,400 10,123 i Net Gearing Ratio 0.68x 0.91x ROE 9.1% (4.6%) i Net debt and net gearing ratio included lease liabilities 45
Slide 46: Free Cash Flow
Free Cash Flow S$m FY21 FY20 Operating profit 898 8 Depreciation & other non-cash items (570) 91 Provisions made for stocks, contract assets and doubtful debts 246 701 Working capital changes (432) (168) Interest & tax paid (417) (430) Net cash from/(used in) operating activities (275) 202 Investmen
Slide 47: Financial Information by Segment
Financial Information by Segment 47
Slide 48: Energy & Environment
Energy & Environment S$m 2H21 2H20 % Change FY21 FY20 % Change Revenue 3,470 1,919 81 5,574 3,943 41 EBITDA (155) (114) 36 (376) (671) (44) Operating Loss (228) (189) 21 (522) (822) (36) Loss Before Tax (292) (309) (6) (469) (1,251) (63) Net Loss (235) (223) 5 (414) (1,181) (65) n.m.f. denotes No Me
Slide 49: Urban Development
Urban Development S$m 2H21 2H20 % Change FY21 FY20 % Change Revenue 720 764 (6) 1,629 1,275 28 EBITDA 625 336 86 1,036 645 61 Operating Profit 598 314 90 993 605 64 Profit Before Tax 621 373 66 1,072 720 49 Net Profit 484 223 117 763 438 74 49
Slide 50: Connectivity
Connectivity S$m 2H21 2H20 % Change FY21 FY20 % Change Revenue 674 633 6 1,260 1,220 3 EBITDA 146 127 15 288 259 11 Operating Profit 45 17 165 86 46 87 Profit Before Tax 48 16 200 86 29 197 Net Profit 37 13 185 64 13 392 50
Slide 51: Asset Management
Asset Management S$m 2H21 2H20 % Change FY21 FY20 % Change Revenue 84 75 12 162 135 20 EBITDA 57 48 19 116 276 (58) Operating Profit 55 46 20 113 273 (59) Profit Before Tax 192 34 465 327 304 8 Net Profit 184 22 >500 301 280 8 51
Slide 52: 3. Appendices
3. Appendices • Operational updates • Additional financial information • Keppel Land’s property portfolio 52
Slide 53: Sales Achieved - Overseas
Sales Achieved - Overseas Units Sold in Sales Value in Latest Key Projects Location FY21 FY21 Avg. Selling Price China (RMB’m) (RMB’psm) Upview Shanghai 1,476 6,899 ~45,700 Park Avenue Heights 168 322 ~17,700 Wuxi Seasons Residences 699 1,819 ~21,700 Noblesse IX Nanjing 113 2,398 ~58,200 Waterfront
Slide 54: Residential Landbank - Singapore
Residential Landbank - Singapore Remaining Remaining Total GFA Total Units Units Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Launched Projects Corals at Keppel Bay* 100% 99-yr 509,998 366 366 339 27 87,264 Reflections at Keppel Bay* 100% 99-yr 2,081,738 1,129 1,129 1,115
Slide 55: Residential Landbank - China
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 95 122 37,697 Shanghai Upview 15% 163,460 1,562 1,476 1,476 86 12,393 Waterfront Residences 100% 315,117 1,401 1
Slide 56: Residential Landbank - Other Overseas
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 1,586 966 2,076 213,366 Empire City 40% 666,224
Slide 57: Residential Launch Readiness – China
Residential Launch Readiness – China Units Ready to Launch Project Location 2022 2023 2024 Upview Shanghai 86 - - Waterfront Residences 50 8 - Wuxi Seasons Residences 983 313 - Serenity Villas 31 - - North Island Site Tianjin 2,011 1,773 1,782 Waterfront Residences II 68 126 126 Noblesse IX Nanjing
Slide 58: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas Units Ready to Launch Project Location 2022 2023 2024 Vietnam Saigon Sports City Velona - 804 330 Natura - - 864 Riviera Point ^ Phase 1A 7 - - The View 13 - - The Infiniti 10 - - Phase 2 360 77 - Empire City HCMC Narra Residences 25 - - Empire Sky Resid
Slide 59: Expected Completion for Launched Projects
Expected Completion for Launched Projects Total Units Launched as Units Sold as Units Remaining Expected Projects/Phases Launched Location Units at end-Dec 2021 at end-Dec 2021 as at end-Dec 2021 Completion China North Island Site (UPED) 1,232 292 42 1,190 2H2024 Tianjin Waterfront Residences II 572
Slide 60: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects No. of Units Expected to be Completed Projects/Phases to be launched Location 2022 2023 2024 China Waterfront Residences - 54 - Wuxi Seasons Residences 722 - - North Island Site Tianijn - - 2,612 Sub-Total 722 54 2,612 Vietnam Celesta Avenue (formerly Nha Be
Slide 61: Commercial Projects - Under Development
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 2023 Seasons City Tianjin 100% 80,300 TBC TBC Vietnam 92,37
Slide 62: Commercial Projects - Completed
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 Keppel Greenland Being Fun Shanghai
Slide 63: 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 those arising from COVID-19, industry and economic conditions, competition,