Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Day (August 2024)
39 slides from Keppel Infrastructure Trust's investor day presentation, Aug 22, 2024
Slide 1: Investor Day 2024 Tokyo
Investor Day 2024 Tokyo 22 August 2024
Slide 2: Important Notice
Important Notice NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, EUROPEAN ECONOMIC AREA, CANADA, JAPAN, MALAYSIA, THAILAND OR AUSTRALIA The information contained in this presentation is for information purposes only and does not constitute or form part of, a
Slide 3: Outline
Outline Overview 4 Acquisition of Ventura 11 KMC CTA Extension and Capital Restructuring 18 Growth and Value Creation 21 1H 2024 Financial Results 26 Constituent of: Awards and Accreditations1: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 1. Keppel Infrastructure Fund Manag
Slide 4: Overview
Overview European Onshore Wind Platform
Slide 5: Largest SGX-listed Infrastructure Business Trust
Largest SGX-listed Infrastructure Business Trust1 Providing exposure to the resilient and growing global infrastructure sector S$8.8b AUM Essential businesses and >10 mature economies Portfolio of scale providing global assets Focused on investment grade jurisdictions with well-developed regulatory
Slide 6: Building the Infrastructural Foundation for a Sustainable Future
Building the Infrastructural Foundation for a Sustainable Future Supports energy transition, safeguards the environment and drives economic growth Ventura The largest bus operator in Victoria, Australia, providing essential transport services in Melbourne
Slide 7: FY 2023: Record Year
FY 2023: Record Year Driven by strong portfolio performance from growth and value creation Record EBITDA Record DPU (cents) $463.7m1 6.193 Up 15.3%y-o-y 3.72 3.72 3.82 3.78 Record DI2 $316.8m FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Up 42% y-o-y Delivering DPU-accretion4 Focus on growth and value cre
Slide 8: 2023-2024 milestones
Driving Portfolio Growth through Acquisitions and Value Creation Well-positioned for growth Expand into transportation infrastructure 2023-2024 milestones Acquisition of Ventura Made 1st solar investment German Solar Portfolio Jun 2024 Jan 2024 Concession and CTA extensions Dec 2023 Dec 2022 Senoko
Slide 9: Voluntary Independent Portfolio Valuation
Voluntary Independent Portfolio Valuation Portfolio AUM of $8.8b with new acquisitions and value creation initiatives Improve transparency and better reflect asset values which are largely recognised at cost in statutory reports Higher AUM of $8.8b driven by new acquisitions and growth in existi
Slide 10: Deepen Renewables Exposure with First Solar Portfolio Investment
Deepen Renewables Exposure with First Solar Portfolio Investment Attractive de-risked portfolio backed by 20-year lease contracts with German households Acquisition of 45% stake in a German solar portfolio projected to comprise >60,000 bundled solar photovoltaic (PV) systems, including battery sto
Slide 11: Acquisition of Ventura
Acquisition of Ventura Ventura
Slide 12: Ventura: The Largest Bus Operator in Victoria
Ventura: The Largest Bus Operator in Victoria An Essential Infrastructure and Public Service that supports Melbourne’s population growth KIT completed the acquisition of 97.7%1 interest in Ventura Motors Pty Ltd (Ventura) on 3 Jun 2024 Largest share of commuter bus services market and fast-growi
Slide 13: Ventura: A Century of Service History
Ventura: A Century of Service History Victoria’s largest bus operator, providing essential transport services in Melbourne 100 years ~900 bus fleet ~37% A$290m3 Operations (since 1924) including 27 ZEBs1 Market share2 FY2023 revenue >42m p.a. 12 depots ~100% A$84m3 Passengers transported Serving ~53
Slide 14: Defensive Cash Flows with Cost Indexation and Capital Reimbursement
Defensive Cash Flows with Cost Indexation and Capital Reimbursement Majority of revenues derived from long-term, inflation-protected government contracts Fixed payments; inflation-protected > 80% of revenues − No farebox and patronage risk from MBSCs1 − Stable revenue based on service delivery cos
Slide 15: Platform of Scale to Capture Growth Opportunities
Platform of Scale to Capture Growth Opportunities Accelerate growth within existing business and adjacent verticals Capture upsides within key regions Leveraging technology for vertical and horizontal growth 1 Increase service kilometres 3 Grow new revenue streams Differentiating on technology 4 Unl
Slide 16: Accretive Acquisition that Strengthens Portfolio Resilience
Accretive Acquisition that Strengthens Portfolio Resilience Pro forma DPU to increase by 3.4%2 Funds from Operations (“FFO”)2 AUM growth of 8% to S$8.8b1 post-acquisition 6.1% Assets under Management (AUM) By Business and Assets By Geography Australia and From S$287.9m3,4 in FY 2023 to S$305.6m6 New
Slide 17: Electrification Thematic Supporting KIT's ESG Targets
Electrification Thematic Supporting KIT's ESG Targets Ventura is the first mover for energy transition in Victoria’s public transportation sector KIT’s carbon emissions intensity Carbon emissions (‘000tCO2) / Distributable Income (S$m) Owns and operates Victoria’s first fully electric bus depot 9.1%
Slide 18: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Keppel Merlimau Cogen Plant
Slide 19: Overview
Overview Keppel Merlimau Cogen Plant (KMC) Located on Jurong Island, and connected to Singapore’s electricity transmission network, KMC is well positioned to support the surrounding industries with their electricity, steam supply and demineralised water requirements Under the terms of the Capaci
Slide 20: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Allow KMC to resume Distributable Income contributions to KIT Extension of CTA and OMSA by 10 years Resume Distributable Income KMC continues to receive Capacity Fees of up to S$108m p.a. contributions to KIT from 2030 to 20401 Extension of operations
Slide 21: Growth and Value Creation
Growth and Value Creation German Solar Portfolio
Slide 22: Market Outlook
Market Outlook Infrastructure: Driving Sustainable Development Resilient sector amid market turmoil.. … powered by the Energy Transition sector .. and transit towards the circular economy Investor appetite for infrastructure US$4.6 trillion in global energy transition Continued demand for wast
Slide 23: Continued Focus on Growth
Continued Focus on Growth Leveraging on the Sustainable Infrastructure theme Actively pursue third party evergreen businesses Focus on developed markets in APAC and Europe; and yield-accretive investments opportunistic for the rest of the world Optimise portfolio through asset recycling, unlocking
Slide 24: Value Creation a Key Differentiation for KIT
Value Creation a Key Differentiation for KIT Driving growth of businesses through focused portfolio optimisation plans
Slide 25: Drawing on Keppel's Deep Engineering and Operating Capabilities
Drawing on Keppel’s Deep Engineering and Operating Capabilities Operator-oriented DNA: Strong emphasis on value-adding and active management Energy Infrastructure Environmental Infrastructure Global Developer of Singapore’s 1st independent power project, Keppel Merlimau Cogen (1.3GW) Keppel's In
Slide 26: 1H 2024 Financial Results
ICEPPEL I< | | INFRASTRUCTURE TRUST 1H 2024 Financial Results
Slide 27: 1H 2024 Highlights
1H 2024 Highlights Contributions from new acquisitions and KMC, steady operational performance Defensive cash flows supported by a portfolio of critical assets and businesses Higher underlying 1H 2024 distributable income 1H 2024 Distributable Income (DI) of $91.0m due to one-offs and 1H 2024 DPU
Slide 28: Business Updates: Energy Transition
Business Updates: Energy Transition Supports the transition to a low-carbon economy and furthers KIT’s decarbonisation roadmap City Energy: Building new growth engines Continued performance of investments Renewables German German Solar Portfolio European Offshore Wind Portfolio Onshore Wind Platform
Slide 29: Business Updates: Environmental Services
Business Updates: Environmental Services Provides the essential services that protect human health and safeguard the environment EMK: Seeking growth opportunities Stable contributions from concession assets Singapore waste and water assets Senoko Waste- Keppel Seghers to-Energy (WTE) Tuas WTE Plant
Slide 30: Business Updates: Distribution & Storage
Business Updates: Distribution & Storage Supporting and driving economic growth Ixom: Sharpen business for growth Philippine Coastal: Capacity expansion to meet demand Continued solid performance in core products across the Australian and New Zealand Water segments High tank utilisation rate of
Slide 31: Business Updates: Distribution & Storage
Business Updates: Distribution & Storage Supporting and driving economic growth Ventura: Platform of scale to capture growth Continues to deliver on strong performance metrics in punctuality and reliability Availability-based revenue that does not fluctuate with passenger volume nor fares collec
Slide 32: Distributable Income (DI)
Distributable Income (DI) S$’000 1H 2024 1H 2023 +/(-) % Remarks Energy Transition 83,653 97,672 (14.4) Fuel cost under-recovery due to timing of fuel cost pass through ($9.7m impact) and higher - City Energy 20,987 32,185 (34.8) maintenance capex ($2.1m) for 1H 2024 - Transition Assets Resumption o
Slide 33: Balance Sheet
Balance Sheet Building a strong balance sheet to support growth Post the issuance of $200.0m 4.90 per cent perpetual securities on 2 Aug 2024, net gearing would decline to 41.5%. Undrawn committed credit facilities Balance Sheet (S$’m) 30 Jun 2024 31 Dec 2023 $670m Cash 498.8 482.6 Interest Covera
Slide 34: Capital Management
Capital Management Well-diversified debt maturity profile with healthy capital management metrics Completed KMC capital restructuring with a 15-year sustainability linked loan, allowing the plant to resume Distributable Income contributions Partially funded Ventura acquisition with a $392m term
Slide 35: Sustainability at the Core
Sustainability at the Core 1H 2024 ESG highlights Environmental Stewardship Responsible Business People and Community Progressing on decarbonisation MSCI ESG upgrade to ‘A’ rating Dedicated more than 600 hours roadmap with latest acquisition of to support community outreach the German Solar Po
Slide 36: Energy Transition Portfolio Overview
Portfolio Overview as at 30 Jun 2024 Total Assets1 Description Customer Revenue model (S$’m) Sole producer and retailer of piped town gas; expanded Fixed margin per unit of gas sold, > 900,000 commercial and residential City Energy into LPG business, as well as with fuel and electricity costs custom
Slide 37: Environmental Services Portfolio Overview
Portfolio Overview as at 30 Jun 2024 Total Assets1 Description Customer Revenue model (S$’m) NEA, Singapore government agency - Waste-to-energy plant with 2,310 Senoko WTE concession until 2027 with option for Fixed payments for availability of tonnes/day waste incineration Plant up to 1-year extens
Slide 38: Distribution & Storage Portfolio Overview
Portfolio Overview as at 30 Jun 2024 Total Assets1 Description Customer Revenue model (S$’m) Manufacturer and distributor of Over 17,000 business and municipal Payments from customers for Distribution & Storage water treatment chemicals, Ixom customers, and over 35,000 retail delivery of products an
Slide 39: Thank You
Thank You www.kepinfratrust.com Connect with us on: Borkum Riffgrund 2
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