Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — CitySpring Infrastructure Trust — FY2014 Earnings Presentation
28 slides from Keppel Infrastructure Trust's earnings presentation, May 5, 2014
Slide 1: Results Briefing for FY14
Results Briefing for FY14 5 May 2014
Slide 2: Disclaimer
Disclaimer This presentation is not and does not constitute or form part of, and is not made in connection with, any offer, invitation or recommendation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any units of CitySpring Infrastructure Trust (“CitySpring”) and ne
Slide 3: Contents
Contents 1 Overview 2 Group Financial Results 3 Subsidiaries’ Financial Results 4 Our Investment Proposition Private and Confidential 2
Slide 4: Overview
Overview Cash Earnings – 4Q FY14 Total cash earnings(1) of S$15.3 million, compared to S$15.7 million in 4Q FY13 – FY14 Total cash earnings(1) of S$60.0 million, compared to S$95.1 million in FY13 Distribution Per Unit (“DPU”) – CitySpring will pay a DPU of 0.82 Singapore cents for 4Q FY14. This
Slide 5: Overview: City Gas Business Highlights
Overview Business Highlights City Gas achieved total cash earnings of S$45.7 million for FY14 Its customer base grew by about 3% from 670,000 as at the end of FY13 to about 690,000 as at the end of FY14 The average monthly town gas sales volume has increased by 2.1% to 139,595,000 kWh compared
Slide 6: Overview: SingSpring Business Highlights
Overview Business Highlights Achieved total cash earnings of S$14.2 million for FY14 Overview Achieved 99.44% availability for the financial year and met all the terms SingSpring Business Highlights under the Water Purchase Agreement with PUB Awarded BizSAFE Star accreditation by Workplace Saf
Slide 7: Overview: Basslink Business Highlights
Overview Business Highlights Achieved cash earnings of A$7.9 million for FY14 CRSM(3) was negative A$13.4 million for FY14 Achieved cumulative availability of 97.53% for the 12 months ended 31 Basslink December 2013 and 99.63% for the three months ended 31 March 2014 The outcome of the arbit
Slide 8: Overview: CityNet Business Highlights
Overview Business Highlights CityNet is the trustee-manager of NetLink Trust SingTel is the sole unitholder of NetLink Trust and retains a 100% economic interest in the business and assets of NetLink Trust NetLink Trust carries on the business of owning, installing, operating and maintaining c
Slide 9: Overview: Capital Management
Overview Capital Management • Completed refinancing of City Gas loan of S$128 million with a new loan facility of S$178 million for a 5 year period till February 2019. • The refinancing of CitySpring corporate loan of S$142.3 million is expected to be completed by August 2014. • Basslink had appoint
Slide 10: Contents
Contents 1 Overview 2 Group Financial Results 3 Subsidiaries’ Financial Results 4 Our Investment Proposition Private and Confidential 9
Slide 11: Group Financial Results: Revenue and Cash Earnings
Group Financial Results Revenue (S$ millions) Cash Earnings (S$ millions) 60.0 95.1 521.1 523.9 FY14 FY13 FY14 FY13 Private and Confidential 10
Slide 12: FY14 versus FY13 Cash Earnings
Group Financial Results FY14 versus FY13 Cash Earnings Main factors contributing to lower cash earnings are: - The time lag in the adjustment of gas tariffs to reflect actual fuel cost for City Gas - Lower contributions from Basslink Private and Confidential 11
Slide 13: Group Cash Earnings
Group Financial Results Group Cash Earnings FY14 FY13 S$'000 S$'000 Cash Earnings 60,023 95,061 Applied as follows: Principal Repayment of Subsidiary Entity Loan (10,443) (9,479) Distribution to Unitholders (49,820) (49,820) Net Balance (240) 35,762 Unrestricted group cash and bank balances as at 31
Slide 14: Contents
Contents 1 Overview 2 Group Financial Results 3 Subsidiaries’ Financial Results 4 Our Investment Proposition Private and Confidential 13
Slide 15: Subsidiaries’ Financial Results: City Gas
Subsidiaries’ Financial Results City Gas 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Change Actual Actual Change S$'000 S$'000 % S$'000 S$'000 % Revenue 99,839 91,353 9.3 394,921 384,248 2.8 Other income 255 274 (6.9) 1,068 1,044 2.3 Other gains - net 215 89 141.6 261 67 289.6 Expenses Fuel and electric
Slide 16: Subsidiaries’ Financial Results: SingSpring
Subsidiaries’ Financial Results SingSpring 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Change Actual Actual Change S$'000 S$'000 % S$'000 S$'000 % Revenue 12,954 9,438 37.3 42,424 42,997 (1.3) Other income 2 2 - 9 95 (90.5) Expenses Fuel and electricity costs (5,695) (3,179) (79.1) (15,592) (16,074) 3.0
Slide 17: Subsidiaries’ Financial Results: Basslink
Subsidiaries’ Financial Results Basslink 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Change Actual Actual Change A$'000 A$'000 % A$'000 A$'000 % Revenue 18,525 20,707 (10.5) 68,874 73,730 (6.6) Other income 275 251 9.6 1,064 1,268 (16.1) Other (losses)/gains - net (1,081) 1,522 N/M N/M (960) (5,875) 83.
Slide 18: Contents
Contents 1 Overview 2 Group Financial Results 3 Subsidiaries’ Financial Results 4 Our Investment Proposition Private and Confidential 17
Slide 19: Our Investment Proposition
Our Investment Proposition • Businesses providing essential services • Sustainable distribution • Strategy for growth Private and Confidential 18
Slide 20: Businesses Providing Essential Services
Businesses Providing Essential Services City Gas • Total gas volume has grown steadily over the years Total gas volume sold 2500 2,421 • Total customers at end FY14 – ~ 690,000 2300 • Stable cash earnings driven by broad and diversified millions of kWh 2,066 2,082 2100 1,944 customer base 1900 1,767
Slide 21: Businesses Providing Essential Services
Businesses Providing Essential Services Basslink 110.00% • Exceeded target annual availability of 97%, except for CY08 99.89% 100.00% 98.80% 98.80% 98.64% • Availability based earnings underpinned by high 97.12% 97.53% 94.64% 97.00% reliability 90.00% 80.00% CY07 (1) CY08 CY09 CY10 CY11 CY12 CY13 Av
Slide 22: Sustainable Distributions
Sustainable Distributions (S$ million) FY12 FY13 FY14 Group Cash Earnings 54.3 95.1 60.0 Distribution to Unitholders 47.7 49.8 49.8 • CitySpring distributes to unitholders out of Group Cash Earnings • The Group has consolidated cash balance of S$304.3 million as at 31 March 2014, of which S$259.7 mi
Slide 23: Strategy for Growth
Strategy for Growth Since IPO in Feb 2007 • Acquired Basslink in August 2007 • Launched Basslink Telecoms as a new business in July 2009 • Awarded a mandate by SingTel to manage NetLink Trust in July 2011 • City-OG Gas Energy Services Pte Ltd (“City-OG Gas”), the business venture between City Gas an
Slide 24: Appendix
Appendix Private and Confidential 23
Slide 25: Group Consolidated Income Statement
Group Financial Results Group Consolidated Income Statement 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Change Actual Actual Change S$’000 S$’000 % S$’000 S$’000 % Revenue 134,981 127,930 5.5 521,052 523,888 (0.5) Other income 705 739 (4.6) 2,809 3,352 (16.2) Other (losses)/gains - net (748) 2,440 N/M (
Slide 26: Group Consolidated Balance Sheet
Group Financial Results Group Consolidated Balance Sheet As at 31 Mar 14 As at 31 Mar 13 S$'000 S$'000 ASSETS Cash and bank deposits 304,327 202,364 Derivative financial instruments 3,859 - Trade and other receivables 68,554 64,924 Inventories 20,040 18,096 Intangibles 388,486 404,463 Finance lease
Slide 27: Group Consolidated Cash Flow Statement
Group Financial Results Group Consolidated Cash Flow Statement 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Actual Actual S$'000 S$'000 S$'000 S$'000 Operating activities Profit before tax 1,295 7,329 1,891 25,650 Non-cash adjustments 29,509 29,241 114,131 126,758 Operating cash flow before working capit
Slide 28: Group Cash Earnings
Group Financial Results Group Cash Earnings 4Q FY14 4Q FY13 FY14 FY13 Actual Actual Actual Actual S$'000 S$'000 S$'000 S$'000 EBITDA 30,087 39,355 117,599 147,047 Add/(less): Other cash receipts 1,727 1,576 6,507 12,455 Net finance costs (12,523) (14,481) (52,565) (57,480) Payment of loan upfront fe
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