Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — 9M 2019 Earnings Presentation
25 slides from Keppel Infrastructure Trust's earnings presentation, Oct 14, 2019
Slide 1: Third Quarter and Nine Months 2019 Financial Results
Third Quarter and Nine Months 2019 Financial Results 14 October 2019
Slide 2: Important Notice
Important Notice Not for distribution in the United States 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
Slide 3: Outline
Outline ◼ Key Results Highlights 4 ◼ Business Updates 6 ◼ Finance & Capital Management 10 ◼ Looking Ahead 15 3
Slide 4: Key Results Highlights
Key Results Highlights Ixom
Slide 5: 9M 2019 Key Results Highlights
9M 2019 Key Results Highlights Distribution per Unit Distributable Cash Flows Annualised Yield Proposed divestment of 51% stake in 2.79 cents $149.9m 7.0% DataCentre One1 DPU of 0.93 cents for 3Q 2019, DCF of $55.7 million for Annualised distribution yield Allows KIT to realise the bringing 9M 2019
Slide 6: Business Updates
Business Updates Ulu Pandan NEWater Plant
Slide 7: Business Sectors
Business Sectors Diversified Business Trust with a Strategic Portfolio of Infrastructure-Like Businesses and Assets Distribution & Network Energy Waste & Water Strategic infrastructure business and Stable and resilient infrastructure assets anchored by concession contracts assets with potential for
Slide 8: Portfolio Overview
Portfolio Overview Distribution and Network Energy Waste & Water Senoko and Tuas WTE Plants, Assets City Gas, Basslink, DC One, Ixom Keppel Merlimau Cogen (KMC) Ulu Pandan and SingSpring Water Plants City Gas • Had an unplanned maintenance • Fulfilled all contractual obligations • Customer base grew
Slide 9: Portfolio Breakdown
Portfolio Breakdown By Assets (%) By Geography (%) 11.7 19.3 0.4 17.6 10.0 $5.1 42.5 $5.1 billion billion 57.5 16.1 24.9 City Gas DC One Basslink Ixom KMC Waste & Water Singapore Australia and New Zealand Non-controlling interest 9
Slide 10: Finance & Capital Management
Finance & Capital Management City Gas
Slide 11: Distributable Cash Flows
Distributable Cash Flows +/(-) +/(-) (S$’000) 3Q 2019 3Q 2018 9M 2019 9M 2018 % % Distribution & Network • City Gas 11,234 6,942 61.8 37,496 27,651 35.6 • DC One 1,327 1,353 (1.9) 3,981 3,832 3.9 • Ixom1 21,683 - > 100.0 37,717 - > 100.0 Energy • KMC 10,802 11,766 (8.2) 33,752 33,603 0.4 Waste & Wat
Slide 12: Regular and Stable Distributions
Regular and Stable Distributions Comparative Yields1 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 DPU for 3Q 2019 DPU: 0.93 Singapore cents ▪ Book closure date: 22 October 2019 ▪ Payment date: 15 November 2019 1. Sources: Bloomberg
Slide 13: Balance Sheet
Balance Sheet Sustainable gearing supported by: As at 30 September 2019 (S$’m) ◼ Long term contracts expiring between Total Excl. Basslink 2024 and 2036 Cash 438 377 ◼ Creditworthy customers backed by Borrowings 2,156 1,510 government and government-linked corporations Net debt 1,718 1,133 Total ass
Slide 14: Capital Management
Capital Management ◼ Hedged ~ 88% of total loans Debt Repayment Debt Breakdown by ◼ All loans are non-recourse except KIT corporate loan Profile Currency ◼ Stable interest rate of 4-5% > 5 yrs − Singapore average: 3-4% 0.1% < 1 yr − Australia average: 4-7% 62.5% A$ 52.9% ◼ Weighted average term to m
Slide 15: Looking Ahead
Looking Ahead Ixom
Slide 16: 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 17: Additional Information
Additional Information Senoko WTE Plant
Slide 18: 3Q 2019: Distributable Cash Flows
3Q 2019: Distributable Cash Flows S$'000 KMC City Gas Basslink Ixom Waste & Water Others Group Profit/(loss) attributable to unitholders (10,641) 3,692 (11,188) 10,814 (199) 16,878 9,356 Add/(less): Reduction in concession / lease receivables - (276) - - 13,274 - 12,998 Non-cash finance cost 76 24 1
Slide 19: 3Q 2018: Distributable Cash Flows
3Q 2018: Distributable Cash Flows S$'000 KMC City Gas Basslink Waste & Water Others Group Profit/(loss) attributable to unitholders (9,628) 564 (3,112) 869 19,461 8,154 Add/(less): Reduction in concession / lease receivables - - - 13,038 - 13,038 Non-cash finance cost 83 100 1,623 4 30 1,840 Other n
Slide 20: 9M 2019: Distributable Cash Flows
9M 2019: Distributable Cash Flows S$'000 KMC City Gas Basslink Ixom Waste & Water Others Group Profit/(loss) attributable to unitholders (30,145) 14,796 (14,607) 6,018 (40) 33,082 9,104 Add/(less): Reduction in concession / lease receivables - (276) - - 40,014 - 39,738 Non-cash finance cost 244 108
Slide 21: 9M 2018: Distributable Cash Flows
9M 2018: Distributable Cash Flows S$'000 KMC City Gas Basslink Waste & Water Others Group Profit/(loss) attributable to unitholders (30,123) 7,614 (24,657) 1,054 57,722 11,610 Add/(less): Reduction in concession / lease receivables - - - 39,008 - 39,008 Non-cash finance cost 248 296 4,903 11 84 5,54
Slide 22: 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 23: Distribution & Network
Description Customer and contract terms Primary source of cash flows 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 Distribution & Network to consumer Basslink subsea int
Slide 24: 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 25: Thank You
Thank You www.kepinfratrust.com Ulu Pandan NEWater Plant
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