Slide 1: 1H24 Financial Results
1H24 Financial Results 1 August 2024
Slide 2: Contents
CONTENTS 01 02 03 Address by CEO Financial highlights Appendices 2
Slide 3: Address by CEO
Address by CEO 3
Slide 4: Good progress in accelerating Vision 2030 transformation in 1H24
Good progress in accelerating Vision 2030 transformation in 1H24 Scaling up as a global asset manager and operator • Asset management earnings more than doubled yoy to $75m in 1H24 • FUMi grew 55% to $85b as at end-Jun 2024, including >$25b from Aermont Pressing forward with asset monetisation • $28
Slide 5: Stronger performance excluding effects of legacy O&M assets
Stronger performance excluding effects of legacy O&M assets Net profit $513m $481m 76 • 1H24 net profit of $513m was 7% 37 Dividend 129 186 higher yoy, excl. effects of legacy offshore & marine assetsi 363 15.0 cts/share 291 • Incl. effects of legacy O&M 1H24 interim cash dividend, assets, net profi
Slide 6: Growing recurring income
Growing recurring income Recurring income Recurring income by sources by segments 14% growth in recurring income yoy $388m $388m $340m $340m 75 53 30 41 76% of 1H24 net profiti was recurring, 310 313 351 307 underpinned by stronger infrastructure and connectivity earnings (8) (16) 1H23 1H24 1H23 1H2
Slide 7: Driving growth in asset management
Driving growth in asset management Asset Management Feesi Funds under Managementii Opportunities +55% $85b $203m +75% 22 $25b $25b Dry powder for $55b $5b $116m 111 +46% deployment +9% Aermont 20 organic 67 growth $27b 70 Extended deal 29 flow pipeline 1H23 1H24 End-2023 End-Jun 2024 Infrastructure
Slide 8: Completed Phase 1 acquisition of Aermont
Completed Phase 1 acquisition of Aermont Accelerating Keppel’s transformation as a global asset manager and operator Updates on Aermont: 5 active funds >$25b 50bps Pan-European opportunistic FUMi as at end-Jun 2024 Annualised funds focused on real estate with potential to grow to $60b Fee-to-FUM rat
Slide 9: Creating value with strong development and operating expertise
Creating value with strong development and operating expertise Robust integrated power business Growing long-term solutions & servicesi • Boosting performance and resilience of Keppel Merlimau $5.2b Contracts secured at end-Jun 2024 long-term grew >20% from $4.3b at end-2023, with Cogen with 2nd tur
Slide 10: Driving value creation with strong operating expertise
Driving value creation with strong operating expertise Gaining traction in Real Estate-as-a-Service • Implementing SUR solutions across a pipeline of 6 projects with combined asset value of $3bi • Acquisition of Grade A office complex in Chennai for asset enhancement to improve sustainability perfor
Slide 11: Building on Keppel's unique value proposition
We will continue to build on Keppel’s unique value proposition as a global asset manager and operator to drive stronger returns for our Limited Partners and greater value for our shareholders 11
Slide 12: Financial highlights
Financial highlights
Slide 13: Overview of 1H24 results
Overview of 1H24 results • Net profit was $304m, as compared to $3.6b in 1H23 Net profit by segment • 1H23 included $3.2b from discontinued operations, mainly due to gain of $3,627m disposal of KOM of $3.3b 3,182 • Net profit from continuing operations of $304m in 1H24 as compared to $445m in 1H23 $
Slide 14: Overview of 1H24 results (excl. legacy O&M assets)
Overview of 1H24 results (excl. legacy O&M assetsi) • Net profit improved by 7% to $513m from $481m in 1H23 Net profit by segment • Infrastructure & Connectivity achieved higher profits $513m $481m • Annualised ROE improved to 9.8% in 1H24 from 8.7% in 1H23 37 76 129 • Adjusted net debt to EBITDAii
Slide 15: Horizontal reporting (excl. legacy O&M assets)
Horizontal reporting (excl. legacy O&M assetsi) • Positive contributions from all income streams Net profit • Recurring income grew 14% to $388m: robust Asset Management earnings $513m $481m 12 1 24 • Valuation: higher fair value gains from investment properties 128 167 • Development/EPC: lower cont
Slide 16: 1H24 net profit (horizontal reporting)
1H24 net profit (horizontal reporting) ($’m) Asset Mgmt Operating1 Valuation Development Capital Net profit /EPC recycling Infrastructure 44 307 12 (1) 1 363 71% Real Estate 19 (35) 143 2 – 129 25% Connectivity 12 41 12 – 11 76 15% Corporate activities2 (55) (11%) Sub-Total3 75 313 167 1 12 513 100%
Slide 17: Segmental results – Infrastructure
Segmental results – Infrastructure • Net profit was $363m, 25% higher than 1H23 of $291m Infrastructure net profit • Strong asset management net profit growth mainly from performance fees and acquisition fees and higher management fees $363m • Continued robust operating income from the integrated po
Slide 18: Segmental results – Real Estate
Segmental results – Real Estate • Net profit was $129m, 31% lower than 1H23 of $186m Real Estate net profit • Asset management net profit was comparable yoy • Higher interest expense and lower contributions from Keppel REIT $186m • Higher fair value gains on investment properties $129m • Lower devel
Slide 19: Segmental results – Connectivity
Segmental results – Connectivity • Net profit of $76m, more than doubled $37m in 1H23 Connectivity net profit • Asset management net profit higher yoy due to divestment fees, acquisition fees and lower overheads $76m • Higher operating income mainly from higher project management fees and lower over
Slide 20: Segmental results – Corporate Activities
Segmental results – Corporate Activities (excl. legacy O&M assets) Corporate activities net profit • Net loss of $55m, as compared to $33m in 1H23 ($33m) ($55m) • Lower fair value gains on investments 21 20 • Divestment gains from non-core assets (6) • Lower net interest income & higher share plan e
Slide 21: Appendices: Operational updates
Appendices 1. Operational updates
Slide 22: Fund management platform
Fund management platform AUMi FUM Asset Management Feesii $12.6b of assets on Keppel’s Dry powder: $25b 1H24 annualised Fee-to-FUMiii : 55bps balance sheet that can be potentially converted into future FUM $85b $203m $97.6b 8.8 9 22 $65.6b $53b $116m 8.5 111 66.4 8 58 20 40.7 32 67 70 16.4 22.4 18 2
Slide 23: List of REITs/Trust
List of REITs/Trust As at end-Jun 2024 Market Keppel’s Market value of No Listed REITs/Trust AUM No of assets Geographic presence capitalisation stake Keppel’s stake Singapore, Australia, 1 Keppel REIT $3.19b $9.6b 13 37.4% $1,193m South Korea, Japan Singapore, Australia, China, Malaysia, Germany, 2
Slide 24: List of private funds
List of private funds As at end-Jun 2024 Carrying value of Carrying value of No Funds / SMAs FUMi Keppel sponsor No Funds / SMAs FUMi Keppel sponsor stakeii stakeii Infrastructure Real Estate 1 Keppel Asia Infra Fund (KAIF) 7 Keppel Asia Macro Trends Fund III 2 Keppel Asia Infra Fund II (KAIF II) 8
Slide 25: Infrastructure Division updates
Infrastructure Division updates Operating incomei Integrated power business Robust contracted portfolioiii $334m • Upgrading Keppel Merlimau Cogen’s 60% of contracted generation $314m 2nd gas turbine for enhanced capacity was locked in for 3 years performance and resilience and above as at end-Jun 2
Slide 26: Infrastructure Division updates (Cont.)
Infrastructure Division updates (Cont.) Decarbonisation & Long-term Energy portfolioi sustainability solutions solutions & services Renewables Established beachheads in new markets for $5.2b of solutions & services ~3.7 GW technology solutions and energy services to be delivered over 10-15 years, Ga
Slide 27: Real Estate Division updates
Real Estate Division updates Sustainable Urban Renewal (SUR) Integrated senior living solutions • Implementing SUR solutions across a pipeline of six • Officially opened Sindora Living Nanjing Qixia, the projects with combined asset value of $3bi flagship project of Keppel’s senior living brand and
Slide 28: Real Estate Division updates (Cont.)
Real Estate Division updates (Cont.) • Enhancing commercial portfolio and recurring income through acquisition of One Paramount, a freehold Grade A office complex located in Chennai, India • SSTEC contributed net profit of RMB125m for 1H24 mainly from home sales, and sold a residential plot which wi
Slide 29: Connectivity Division updates
Connectivity Division updates As of end-Jun 2024 Data centres Data centres Data centre Owned by Keppel Owned by Keppel • Making good progress across data centre projects portfolio DC REITi & private funds • Keppel DC SGP 8 at Genting Lane received BCA Green Mark Platinum Award; 1st phase to be ready
Slide 30: Connectivity Division updates (Cont.)
Connectivity Division updates (Cont.) M1 Revenue Revenue Customers Customers • All mass mobile and fixed broadband consumers migrated to the new cloud $598m $593m 2,533k 2,527k native digital platform 238 234 • Enterprise revenue increased due to strong 374 365 performance in ICT business 376 348 •
Slide 31: Vision 2030 asset monetisation
Vision 2030 asset monetisation Announced since the start of asset monetisation programme in Oct 2020 Value Period Value unlocked ($m) Asset Country unlocked ($m) 2020 1,238.4 50 million Dyna-Mac warrants Singapore 4.3 25% stake in a joint venture that 2021 1,666.2 provides O&M services to the China
Slide 32: Appendices: Additional financial information
Appendices 2. Additional financial information
Slide 33: Financial highlights
Financial highlights $m 1H24 1H23 % Change Revenue 3,224 3,716 (13) Operating Profit 505 572 (12) EBITDA 692 826 (16) Profit Before Tax 434 603 (28) Profit from Continuing Operations 304 445 (32) Profit from Discontinued Operations – 3,182 n.m.f. Net Profit 304 3,627 (92) EPS (cents) 16.7 203.0 (92)
Slide 34: Infrastructure Segment
Infrastructure Segment $m 1H24 1H23 % Change Revenue 2,294 2,548 (10) Operating Profit 414 319 30 EBITDA 441 372 19 Profit Before Tax 427 348 23 Net Profit 363 291 25 34
Slide 35: Real Estate Segment
Real Estate Segment $m 1H24 1H23 % Change Revenue 298 533 (44) Operating Profit 167 199 (16) EBITDA 230 321 (28) Profit Before Tax 153 251 (39) Net Profit 129 186 (31) 35
Slide 36: Connectivity Segment
Connectivity Segment $m 1H24 1H23 % Change Revenue 653 649 1 Operating Profit 59 38 55 EBITDA 167 123 36 Profit Before Tax 93 56 66 Net Profit 76 37 105 36
Slide 37: Net profit by segment
Net profit by segment $m 1H24 1H23 % Change Infrastructure 363 291 25 Real Estate 129 186 (31) Connectivity 76 37 105 Corporate Activities (55) (33) 67 Subtotal 513 481 7 Legacy O&M assets1 (209) (36) 481 Continuing Operations 304 445 (32) Discontinued Operations – 3,182 n.m.f. Total 304 3,627 (92)
Slide 38: 1H23 net profit (horizontal reporting)
1H23 net profit (horizontal reporting) Development Capital ($’m) Asset Mgmt Operating¹ Valuation /EPC recycling Net profit Infrastructure 4 303 (2) (14) - 291 60% Real Estate 20 (28) 31 142 21 186 39% Connectivity 6 35 (7) - 3 37 8% Corporate activities² (33) (7%) Sub-Total3 30 310 22 128 24 481 100
Slide 39: Capital structure/ROE
Capital structure/ROE $m 30 Jun 2024 31 Dec 2023 Shareholders’ Funds 10,485 10,307 Total Equity 11,188 11,017 Net Debti 10,472 9,873 Adjusted net debt to EBITDAii 3.7x 3.3x Annualised ROE 6.5% 36.8% Annualised ROE (continuing operations, excluding legacy O&M 9.8% 8.7% assetsiii) i Net debt included
Slide 40: Free cash flow
Free cash flow $m 1H24 1H23 Operating profit 505 3,769 Depreciation & other non-cash items 40 (3,435) Working capital changes (261) (423) Interest & tax paid (380) (225) Net cash (used in)/from operating activities (96) (314) Investments & capex (528) (537) Divestments & dividend income 476 491 Dive
Slide 41: Appendices: Additional Real Estate information
Appendices 3. Additional Real Estate information
Slide 42: Residential Landbank - Singapore
Residential Landbank - Singapore As of end-Jun 2024 Remaining Remaining Total GFA Total Units Units Project Stake Tenure Units Area (sf) Units Launched Sold For Sale For Sale (sf) Corals at Keppel Bay 100% 99-yr 509,998 366 366 364 2 6,019 Reflections at Keppel Bay* 100% 99-yr 2,081,738 1,129 1,129
Slide 43: Residential Landbank - China
Residential Landbank - China As of end-Jun 2024 Remaining Remaining Total GFA Total Units Units Project Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Glory Land Shanghai 10% 93,871 576 576 574 2 207 Waterfront Residences 100% 319,203 1,401 1,347 1,343 58 1,038 Wuxi Season
Slide 44: Residential Landbank - Other Overseas
Residential Landbank - Other Overseas As of end-Jun 2024 Remaining Remaining Total GFA Total Units Units Project Location Stake Units Area (sm) Units Launched Sold For Sale For Sale (sm) Vietnam Saigon Sports City 100% 638,472 3,195 - - 3,195 339,403 Palm City 42% 495,900 3,042 1,586 951 2,091 214,9
Slide 45: Residential Launch Readiness – China
Residential Launch Readiness – China As of end-Jun 2024 Units Ready to Launch Project Location 2H 2024 2025 2026 Glory Land Shanghai 2 - - Waterfront Residences 58 - - Wuxi Seasons Residences 145 320 320 North Island Site 398 1,987 2,965 Tianjin Waterfront Residences II 31 54 51 Total 634 2,361 3,33
Slide 46: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas As of end-Jun 2024 Units Ready to Launch Project Location 2H 2024 2025 2026 Vietnam Saigon Sports City Velona - - 268 Riviera Point ^ Phase 1A - - 12 The View - - 23 The Infiniti - - 14 Phase 2 - - 437 Empire City HCMC Narra Residences - 20 - Celesta ^ C
Slide 47: Expected Completion for Launched Projects
Expected Completion for Launched Projects As of end-Jun 2024 Total Units Launched as Units Sold as Units Remaining Expected Projects/Phases Launched Location Units at end-Jun 2024 at end-Jun 2024 as at end-Jun 2024 Completion China North Island Site (UPED Plot 85b-1) 840 840 840 - 2H2024 North Islan
Slide 48: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects As of end-Jun 2024 No. of Units Expected to be Completed Projects/Phases to be launched Location 2H 2024 2025 2026 China North Island Site Tianjin - - 1,823 Vietnam 11.8-ha Residential Project HCMC - 226 616 Total - 226 2,439 48
Slide 49: Commercial Projects - Under Development
Commercial Projects - Under Development As of end-Jun 2024 Expected Projects under Development Location Stake GFA (sm) Development Cost ^ Completion Singapore Keppel South Central Singapore 100% 60,370 TBC 2025 China Park Avenue Central Shanghai 99% 115,950 RMB 3.8b 2024 Seasons City Tianjin 100% 80
Slide 50: Commercial Projects - Completed
Commercial Projects - Completed As of end-Jun 2024 Key Completed Projects Location Stake GFA (sm) Net Lettable Area (sm) Completion Singapore I12 Katong Singapore 100% 27,140 19,730 2011 * China Trinity Tower 30% 70,000 48,600 2015 International Bund Gateway 29.8% 74,130 62,010 2018 Shanghai Keppel
Slide 51: Sino-Singapore Tianjin Eco-City
Sino-Singapore Tianjin Eco-City Selling Price Sales Value Land Area GFA Plot Date Plot Ratio Based on Land Area Based on GFA (RMB’m) (Hectare) (sm) (RMB’m/hectare) (RMB/sm) Recent residential land sales Plot 49 Jun 2024 167 2.00 1.5 30,005 83 5,566 Plot 18b-2 Jun 2023 460 6.06 1.3 79,684 76 5,777 Pl
Slide 52: Disclaimer
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