Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Merger or Acquisition (August 2022)
12 slides from Keppel Infrastructure Trust's merger presentation, Aug 12, 2022
Slide 1: Proposed Investment in German Offshore Wind Farm
Proposed Investment in German Offshore Wind Farm 12 August 2022 1
Slide 2: Important Notice
Important Notice 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 (“U
Slide 3: Deepen exposure in renewables with first offshore wind investment
Deepen exposure in renewables with first offshore wind investment KIT’s second investment in renewables, reinforcing strategy to grow the Energy Transition segment ▪ Jointly investing with Keppel Corporation to acquire a 25%(1) stake in Borkum Riffgrund 2 (BKR2), a 465MW operating German offshore wi
Slide 4: Well-located windfarm backed by an attractive FiT regime
Well-located windfarm backed by an attractive FiT(1) regime Strong and consistent wind strength and resource availability in the North Sea ▪ High wind resource availability in the North Sea: high capacity(2) factor of >40% with low variability of <10% between P90 and P50(3) ▪ Located next to Wadden
Slide 5: Key investment highlights
Key investment highlights 1 Favourable tailwinds supporting positive renewable energy outlook 2 FiT regime and guaranteed price floor provide cash flow visibility 3 Ørsted a strong operating partner with a proven track record 4 Accretive investment with attractive returns 5 Contribute to an enlarged
Slide 6: Favourable tailwinds supporting positive renewable energy outlook
1 Favourable tailwinds supporting positive renewable energy outlook Driven by decarbonisation and the German government’s push to increase offshore wind capacity Demand drivers Supply drivers ▪ Electricity demand to grow by 2.3% CAGR from ▪ Strong regulatory support to increase 2022 to 2050, support
Slide 7: FiT regime and guaranteed price floor provide cash flow visibility
2 FiT regime and guaranteed price floor provide cash flow visibility Stable power price outlook in the long term with projected capture price above price floor ▪ BKR2 operates under the German EEG 2014 market premium mechanism with attractive FiT and guaranteed floor price till 2038 ▪ Legislation pr
Slide 8: Ørsted a strong operating partner with a proven track record
3 Ørsted a strong operating partner with a proven track record Partnering with a highly regarded developer and operator in the offshore wind sector ▪ Ørsted is a leading player in offshore wind power industry globally with over 30 years of experience Ørsted’s offshore wind farm cluster in the North
Slide 9: Accretive investment with attractive returns
4 Accretive investment with attractive returns Deliver DIPU-accretion to Unitholders Funds from Operations (1)(2) DIPU (cents) (1)(2) Gearing (1) (S$’m) 4.2% 28.7% 6.8 pts 255.9 27.1% 3.85 4.01 198.8 20.3% FY2021 Pro-forma FY2021 Pro-forma As of Pro-forma Post-Investment Post-Investment 31 Dec 2021
Slide 10: Contribute to an enlarged and diversified portfolio
5 Contribute to an enlarged and diversified portfolio KIT's AUM to grow from S$4.7b as at 30 Jun 2022 to approx. S$5.0b post-investment(1) ▪ Diversify KIT’s portfolio into Germany (highest credit rating of AAA/Aaa/AAA(2)), and expanding presence in Europe ▪ Energy Transition segment to increase to 4
Slide 11: Further environmental targets with increased renewables exposure
6 Further environmental targets with increased renewables exposure Proposed investment to reduce KIT’s emission intensity and contribute to renewables target Post-investment Effects ▪ Support climate agenda: Germany brought forward its 100% renewables Carbon emissions (‘000t CO2) / target by 15 year
Slide 12: Thank You
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