Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (September 2016)
19 slides from Keppel Infrastructure Trust's investor presentation, September 2016
Slide 1: Keppel Infrastructure Trust Investor Presentation
Not for distribution in the United States Keppel Infrastructure Trust Investor Presentation September 2016
Slide 2: Disclaimer
Disclaimer 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 in Keppel
Slide 3: KIT at a glance
KIT at a glance Key Highlights Financial Snapshot Largest Singapore focused infrastructure business trust Market Value (1) Generates long term stable cashflows from a diversified Market Capitalisation S$ 1,967 m portfolio of core infrastructure assets: Enterprise Value S$ 3,422 m Sole producer
Slide 4: Flagship investment vehicle for Singapore infrastructure
1 Flagship investment vehicle for Singapore infrastructure KIT Investment Criteria Portfolio of highly strategic assets Telecoms KIT aims to provide unitholders with Utilities Infra Power Infra Infra long-term, regular and predictable distributions by pursuing Singapore DataCentre City Gas KMC Bas
Slide 5: Generates long term predictable cash flows uncorrelated to GDP
2 Generates long term predictable cash flows uncorrelated to GDP… Asset Contract Life Cashflows from Customers Principally fixed availability NEA, Singapore government Senoko WTE Expires in 2024 payments agency Principally fixed availability NEA, Singapore government Expires in 2034 Tuas
Slide 6: Generates long term predictable cash flows uncorrelated to GDP (Cont'd)
2 Generates long term predictable cash flows uncorrelated to GDP… (Cont’d) Asset Contract Life Cashflows From Customer Specified rent payments with 20-year lease from some indexation One-Net, 100% subsidiary of DC One completion with 8-year Potential for additional Mediacorp, Singapore natio
Slide 7: Supporting regular and stable distributions
2 … supporting regular and stable distributions DPU (S cents) S cents/ unit 2.5 2Q FY16: 0.93 Singapore cents 1.98 Book closure date: 26 July 2016 2 Distribution Payment date: 19 August 2016 1.5 1.05 1 0.93 0.93 0.93 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 1QFY14 2QFY14 3QFY14 4QFY14 Pre Combination Pos
Slide 8: Diversified portfolio of core infrastructure assets
3 Diversified portfolio of core infrastructure assets 1H FY16 EBITDA (1) Total Assets as at 30 Jun 2016 KMC Corporate 41% 6% Concessions KMC 18% Concessions 42% 17% City Gas 12% Basslink 12% City Gas Basslink 30% 22% (1) Excludes Trust / corporate expenses. Long term, regular and predictable cash fl
Slide 9: Strong balance sheet
4 Strong balance sheet As at June 2016 Backed by long term contracts generating recurring and stable cash flows from credit Total Excluding worthy customers or a large customer base S$’m Basslink Cash 251 208 Blended interest rate of 4-5% Borrowings 1,706 1,007 >80% of loans hedged 4.5 years
Slide 10: Three-pronged growth strategy
5 Three-pronged growth strategy 1 Organic growth of existing portfolio 2 Keppel sponsorship 3 Acquisition Strategy KIT New Investments Asset which generate long term stable Keppel Capital cash flows with some growth Singapore and other developed Co-investment, bridge financing Potential Upside
Slide 11: Attractive risk adjusted returns
6 Attractive risk adjusted returns Distribution yield (1) Infrastructure trusts Singapore Industrial REITs 8.4% 8.6% Average: 7.2% 11.8% 7.9% Average: 8.5% 6.8% 6.3% 6.4% 8.1% 5.5% 7.5% 7.3% 5.2% Asian Pay Hutchison Port RHT Health Ascendas India KIT AIMS AMP Cache Cambridge Mapletree Mapletree Asce
Slide 12: Key investment highlights
Key investment highlights 1 Flagship investment vehicle for Singapore infrastructure 2 Generates long term predictable cashflows uncorrelated to GDP supporting stable and regular distributions 3 Diversified portfolio of core infrastructure assets 4 Strong balance sheet 5 Three pronged growth strateg
Slide 13: Appendices
Appendices (G5) infrastructure Trust 12
Slide 14: KIT's shareholding structure
KIT’s shareholding structure • Keppel Corporation completed the consolidation of its asset management businesses under Keppel Capital in July 2016 • This includes a 100% interest in Keppel Infrastructure Fund Management (KIFM), the Trustee-Manager of KIT • KIFM will be able to leverage the scale and
Slide 15: Pipeline from Sponsor
Pipeline from Sponsor Keppel Infrastructure’s pipeline [] Keppel Merlimau Cogen - 49% through Keppel Energy Operational since 2007 KI, as the sponsor of KIT, owns 49% shareholding in KMC through Keppel Energy Changi Business Park - 100% through Keppel DHCS Pte Ltd (“ Keppel DHCS”) First dist
Slide 16: Key Differences between Business Trusts, REITs & Listed Companies in Singapore
Key Differences between Business Trusts, REITs & Listed Companies in Singapore Business Trust REIT Listed Company Legislation Regime • Business Trusts Act • Code on Collective Investment • Companies Act Scheme Constitution • Not a separate legal entity • Not a separate legal entity • A separate lega
Slide 17: KIFM Management Fee Structure
KIFM Management Fee Structure Management Fee • S$2.2 million per annum • Inflation adjustment in reference to the CPIS Performance Fee • 4.5% p.a. of sum of cashflow received by KIT Acquisition Fee • 0.5% of the Enterprise Value of any investment acquired, where the investment is acquired from: − Sp
Slide 18: Outstanding loans
Outstanding loans Entity Outstanding Maturity Repayment amounts (S$’m) City Gas 178.0 Feb 2019 Bullet* SingSpring 76.2 Oct 2024 Amortising Basslink 707.9 (A$709.3) Nov 2019 Amortising* KMC 700.0 Jun 2020 Bullet* KIT 57.0 Feb 2019 Bullet* * To be refinanced upon maturity 17
Slide 19: Prudent capital management
Prudent capital management Debt Overview Debt Breakdown • Blended average interest rate of 4 - 5% Debt repayment profile − Singapore average: 3 – 4% > 5 yrs < 1 yr 1.6% 1.8% − Australian average: 6 – 7% − ~85% of loans are hedged • Weighted average term to expiry of ~3.6 years − ~100% of KIT’s loans
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