Slide 1: Briefing to Retail Shareholders
Briefing to Retail Shareholders Hosted by Securities Investors Association (Singapore) 7 September 2018 1
Slide 2: 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 industry and economic conditions, competition, and legal, governmental and
Slide 3: Address by CEO
Address by CEO ° (GS) Corporation
Slide 4: Solutions for Sustainable Urbanisation
Solutions for Sustainable Urbanisation Refreshed Mission Guided by our operating principles and core values, we will deliver solutions for sustainable urbanisation profitably, safely and responsibly. 44
Slide 5: Keppel's Eco-System
Keppel’s Eco-System Ramping up Current Engines Offshore & Property Infrastructure Investments Marine Enlarging capital base Keppel Capital Building New Keppel Urban Engines Harnessing operational strengths Solutions of Growth New Engines for Growth Gas Value Chain Data Centres Smart Cities of the Fu
Slide 6: Financial Performance
Financial Performance 1H 2018 net profit Multi-business strategy underpins resilient performance S$583m, up 38% yoy Annualised ROE of 9.9% 583 Net gearing was 0.40x at end-Jun 66 2018 vs 0.46x at end-Dec 2017 S$m 423 Free cash inflow of S$886m in 163 1H 2018, vs inflow of S$204m 603 57 in 1H
Slide 7: Offshore & Marine: Configuring for Growth
Offshore & Marine: Configuring for Growth Making steady progress Over S$1.2b of new contracts won in 1H 2018 More orders for gas solutions Sold 5 existing rigs to Borr Drilling for US$745m Positioning for future growth Credit: Straits Times Press Completed extensive rightsizing Developing ri
Slide 8: Property: Focused on Returns
Property: Focused on Returns A multi-dimensional property company Build on strong presence in Asia; expand into high-growth regions in China and Vietnam Focus on faster asset turns Grow recurring income from ~1.4 million smi of commercial GFA in Singapore and overseas Seize opportunities to
Slide 9: Infrastructure: Bolstering Stable Income
Infrastructure: Bolstering Stable Income Energy & Environmental Infrastructure Deepening track record as developer, owner & operator of major projects Keppel Marina East Desalination Plant about 50% completed Hong Kong Integrated Waste HKIWMF in design and engineering phase Management Facility
Slide 10: Investments: Building New Growth Engines
Investments: Building New Growth Engines Asset Management Targeted AUM of S$50b by 2022: End-2017: Closed US$1b Alpha DC Fund and listed Keppel-KBS US REIT 2018: New MoUs for A$1b Australian retail property fund, and S$200m early education Keppel Capital is expanding its asset classes and inve
Slide 11: Investments: Integrating Expertise
Investments: Integrating Expertise Large-Scale Urban Developments Sino-Singapore Tianjin Eco City Celebrating 10th anniversary in Sept 2018 Progressing well. More land sales planned in 2H 2018 Keppel Urban Solutions Master developer of large-scale mixed-use developments Best-in-class par
Slide 12: Shaping the Future
Shaping the Future Keppel is well-placed to capture growth from sustainable urbanisation Urbanisation Digitalisation Energy Demand Smart and sustainable cities Green data centres and Onshore/floating infrastructure urban logistics solutions for oil & gas and renewables Industry 4.0 Aging Population
Slide 13: Address by CFO
Address by CFO 1s (GS) Corporation
Slide 14: 1H 2018 Financial Highlights
1H 2018 Financial Highlights S$m 1H 2018 1H 2017 % Change Revenue 2,993 2,802 7 EBITDA 815 446 83 Operating Profit 725 333 118 Profit Before Tax 711 504 41 Net Profit 583 423 38 EPS (cents) 32.2 23.3 38 14
Slide 15: Offshore & Marine
Offshore & Marine 1H 2018 net loss Net loss due to lower work volume and Operations Associates i associate contributions, and higher overseas taxes Lower overheads contributed to S$14m operating profit in S$m 11 1H 2018 21 5 0 (10) 1H 2018 new contracts of ~S$1.2b, (45) including S$680m in 2Q
Slide 16: Property
Property 1H 2018 net profit Sold about 1,420 homes in 1H 2018, Property trading Property investment with total sales value of ~S$770m Hotels/Resorts REIT Stronger net profit underpinned by: 603 31 En bloc sales of development 47 projects in China and Vietnam S$m 192 534 Fair value gain on Na
Slide 17: Infrastructure
Infrastructure 1H 2018 net profit Improved earnings from Infrastructure Energy, Environment & Infrastructure Services Division in 1H 2018: Data centres REIT & Trust Dilution gain following Keppel DC Logistics and others REIT’s private placement 66 57 31 Higher contribution from 12 Environmenta
Slide 18: Investments
Investments 1H 2018 net loss Divisional performance impacted by Asset management Others share of losses from associated companies and fair value losses on investments 163 Keppel Capital contributing steadily S$m and seeks opportunities to expand 138 asset classes and investor base 25 26 0 (72) (
Slide 19: ROE & Dividends
ROE & Dividends Additional Additional special dividend in specie cash dividend 30.0% ~9.5cts/share 5.0cts/share 100 90 25.0% 80 19.5% 18.8% 70 20.0% 60 15.0% 14.2% 50 48 9.9% 40 10.0% 40 6.9% 6.9%* 30 34 20 5.0% 22 20 10 10 12 12 10 0.0% 8 8 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 1H 2018 ROE Inte
Slide 20: Q&A
Q&A 20 Ce] Corporation
Slide 21: Additional Information
Additional Information a (GS) Corporation
Slide 22: Key Figures
Key Figures S$m FY 2017 FY 2016 % Chg 1H 2018 1H 2017 % Chg Revenue 5,964 6,767 (12) 2,993 2,802 7 Operating Profit 760 795 (4) 725 333 118 Net Profit 815* 784 4 583 423 38 EPS 44.8cts* 43.2cts 4 32.2 23.3 38 EVA (220)* (140) 57 275 (17) n.m. Free Cash Flow 1,802 540 234 886 204 >300 Increase Annual
Slide 23: Revenue by Segments
Revenue by Segments S$m FY 2017 % FY 2016 % 1H 2018 % 1H 2017 % Offshore & Marine 1,802 30 2,854 42 939 31 932 33 Property 1,782 30 2,035 30 787 26 804 29 Infrastructure 2,207 37 1,744 26 1,211 41 988 35 Investments 173 3 134 2 56 2 78 3 Total 5,964 100 6,767 100 2,993 100 2,802 100 23 23
Slide 24: Net Profit by Segments
Net Profit by Segments S$m FY 2017 % FY 2016 % 1H 2018 % 1H 2017 % Offshore & Marine (206)* (25) 29 4 (40) (7) 11 3 Property 650 80 620 79 603 104 192 45 Infrastructure 134 16 99 13 66 11 57 13 Investments 237 29 36 4 (46) (8) 163 39 Total 815* 100 784 100 583 100 423 100 * Excludes one-off financia
Slide 25: Keppel is in the business of sustainable urbanisation
Keppel is in the business of sustainable urbanisation. We drive collaboration across business verticals to create and capture value from all parts of the Group. 25 25