Keppel Ltd. · SGX:BN4
Keppel — Investor Presentation (August 2021)
28 slides from Keppel's investor presentation, Aug 25, 2021
Slide 1: Accelerating growth through Vision 2030
Accelerating growth through Vision 2030 SIAS-Keppel Retail Shareholders Briefing 25 August 2021
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCR
Slide 3: Vision 2030
Global Leader 1 Powerhouse of end-to-end solutions for sustainable urbanisation Vision 2030 Sustainable Company One integrated business 2 ESG leader with businesses advancing the sustainability agenda providing solutions for sustainable urbanisation, High-Return Stock with sustainability at the core
Slide 4: Seizing opportunities presented by macrotrends
Macrotrends 4 focus areas Energy Transition, Climate Change Energy & Environment Seizing Rapid Urbanisation, opportunities Ageing Populations presented by Urban Development macrotrends Digitalisation Connectivity Super Liquidity 4 Asset Management
Slide 5: Key transformation drivers
Key transformation drivers 1 Business Transformation Restructuring for growth with greater focus and discipline 2 Asset Monetisation 3 Growth Initiatives Accelerating asset turns to Building new engines and Building new growth engines unlock value, fund growth and seizing inorganic growth Seizing cr
Slide 6: Delivering on strategy
Delivering on strategy 1 Business Transformation 2 Asset Monetisation 3 Growth Initiatives Evolving key business units Identified S$17.5b of Investing in new growth as part of Vision 2030 to monetisable assets engines seize growth opportunities Sep 2020: Announced • Bifrost Subsea Cable Proposed KOM
Slide 7: Sustainability at the core of strategy
Sustainability at the core of strategy Refocus Make portfolio on Set high-impact Enhance sustainability sustainable sustainability governance & our business urbanisation goals incentives solutions 7
Slide 8: Strong performance in 1H 2021
Net Profit (Excluding RIDsi & COVID-19 government grants) S$300m 280 Net profit for 1H 2021, reversing net loss of S$537m for 1H 2020 149 S$m • All key business units profitable 0 • Improved performance across all (72) segments, excluding gains from 1H 2019 1H 2020 1H 2021 reclassification of KIT an
Slide 9: Free cash inflow and interim cash dividend
Free cash inflow Interim cash dividend S$499m 12cts/share Improved from free cash outflow of Compared to 3cts per share for S$664m for 1H 2020 1H 2020 & 8cts per share for 1H 2019 Stronger dividend underpinned by Net gearing as at asset monetisation programme end-Jun 2021 Committed to rewarding 0.85
Slide 10: Energy & Environment
Energy & Renewables & New Energy • Solar farms & offshore wind Offshore & Marine • Net orderbook grew 70% • Natural gas liquids extraction Environment to $5.7b at end-Jun’21 from • Hydrogen & carbon capture, $3.3b at end-Dec’20 utilisation and sequestration Decarbonising our systems • $2.3b of gas &
Slide 11: Energy & Environment
Track record of over 100 waste-to- Energy & Keppel Marina East Desalination energy projects in 20 countries Plant, SG Executing landmark waste Environment management integrated facilities worth over S$6.9b across Asia-Pacific Sterling portfolio of Developing solutions for high energy innovative wast
Slide 12: Urban Development
Urban Development Creating value with highly liveable, vibrant and digitally connected communities Celesta Rise residential development, Ho Chi Minh City, Vietnam i12 Katong retail mall, Singapore S$ 3.1b S$5.1b 400m S$ invested to privatise received in dividends from reduction in Keppel Land’s tota
Slide 13: Urban Development
Urban Development Evolving into an innovative, asset-light real estate solutions provider, focused on growing recurring income Residential Portfolio: Over 70% of landbank is 5 years & older Sizeable landbank with strong potential for value 27% unlocking <5 years old Pivoting away from property t
Slide 14: Connectivity
Connectivity Strong international presence with 28 data centres across Asia-Pacific & Europe Developing sustainable data centre solutions valued by customers and investors Floating Data Centre Parks Tropical Data Centres Powered by clean energy: Renewables & Hydrogen Cold Energy from LNG Flo
Slide 15: Connectivity
Connectivity Empowering businesses and 2nd largest postpaid consumers as Singapore’s first customer base in Singapore digital network operator 5G standalone network trial commenced; advancing 5G initiatives S$ 580m of network assets being unlocked from monetisation Singapore’s first 5G Industry 4.0
Slide 16: New Connectivity Solutions
New Connectivity Solutions Bifrost Cable System World’s first subsea cable system directly connecting Singapore to the west coast of North America via Indonesia Leveraging synergies with M1 and the Group’s data centre business 16
Slide 17: Asset Management
Asset Management Financial twin providing funding and capital recycling opportunities to other business segments in the Group Asset Management Fees +35% 111 S$ 2bXXX in completed acquisitions and divestments from Jan–Jul 2021 82 2b 76 S$ equity raised from Jan–Jul 2021 AUM as at end-2020; potential
Slide 18: Asset Management
Asset Management Keppel’s eco-system provides investors with access to quality investment products and platforms across diverse asset classes Premier Asset Manager XXX Possessing real asset development and operating capabilities Renewables Real Estate Senior Living Education spanning fast-growing se
Slide 19: Proposed combination of KOM & SMM
Proposed combination of KOM & SMM 1 Combined Entity XXX 2 Asset Co (managed XXXby GP) Creates a stronger player in the Solution for completed and Inter-conditional uncompleted legacy assets, which O&M sector would no longer be funded by Keppel Keppel to receive shares in Combined Entity + up to S$50
Slide 20: Proposed acquisition of shares in Singapore Press Holdings ex-Media
Proposed acquisition of shares in Singapore Press Holdings ex-Media Accelerate Vision 2030 plans Financially attractive, enhances returns and earnings profile 1 Proforma EPS accretion1,2 2 Proforma recurring income 3 Maintain gearing4 headroom contibution1,3 Deleveraging in near S$0.175 / sh +6% +
Slide 21: Keppel is uniquely positioned to enhance and unlock value of SPH's portfolio
Keppel is uniquely positioned to enhance and unlock value of SPH’s portfolio Asset Management Urban Development Connectivity REITs & BTs Senior Living Keppel Data Centres Genting Lane Data Centre (84%) (60%) Restructured PBSA Other Woodleigh Seletar Mall Investments Genting Lane (REIT stake / Manage
Slide 22: Looking forward
Looking forward As we accelerate the execution of Vision 2030, Keppel will emerge stronger, more relevant, and on a faster growth path post-pandemic Asset monetisation Significant balance Focused on Aim to achieve programme sheet space improving most of progressing well, released allows shareholder
Slide 23: Questions & Answers
Questions & Answers 23
Slide 24: Additional Information
Additional Information 24
Slide 25: 1H 2021 Financial Performance
1H 2021 Financial Performance Key highlights S$m 1H 2021 1H 2020 % Change Net Profit ↑ from net loss of S$537m to net profit of S$300m Revenue 3,677 3,182 16 ROE ↑ from negative 10.3% to EBITDA 385 52 >500 (Annualised) positive 5.5% Operating Profit/(Loss) 188 (149) n.m.f. Free Cash ↑ from outflow o
Slide 26: 1H 2021 Revenue by Segment
1H 2021 Revenue by Segment S$m 1H 2021 % 1H 2020 % % Change Energy & Environment 2,104 57 2,024 64 4 Urban Development 909 25 511 16 78 Connectivity 586 16 587 18 - Asset Management 78 2 60 2 30 Subtotal 3,677 100 3,182 100 16 Corporate & Others - - - - - Total 3,677 100 3,182 100 16 26
Slide 27: 1H 2021 Pre-tax Profit by Segment
1H 2021 Pre-tax Profit by Segment S$m 1H 2021 1H 2020 % Change Energy & Environment (177) (942) (81) Urban Development 451 347 30 Connectivity 38 13 192 Asset Management 135 270 (50) Subtotal 447 (312) n.m.f. Corporate & Others 69 (45) n.m.f. Total 516 (357) n.m.f. n.m.f. denotes No Meaningful Figur
Slide 28: 1H 2021 Net Profit by Segment
1H 2021 Net Profit by Segment S$m 1H 2021 1H 2020 % Change Energy & Environment (179) (958) (81) Urban Development 279 215 30 Connectivity 27 - n.m.f. Asset Management 117 258 (55) Subtotal 244 (485) n.m.f. Corporate & Others 56 (52) n.m.f. Total 300 (537) n.m.f. n.m.f. denotes No Meaningful Figure