Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Non-Deal Roadshow (February 2019)
22 slides from Keppel Infrastructure Trust's roadshow presentation, Feb 25, 2019
Slide 1: Roadshow Presentation Slides 25 February – 1 March 2019
Roadshow Presentation Slides 25 February – 1 March 2019
Slide 2: Important Notice
Important Notice This presentation is not for distribution, directly or indirectly, in or into the United States and is not an offer of securities for sale in the United States or any other jurisdictions. The information contained in this presentation is for information purposes only and does not co
Slide 3: Overview of Keppel Infrastructure Trust
Overview of Keppel Infrastructure Trust KIT’s portfolio comprises highly strategic assets providing industrial chemicals, utilities, power and telecoms infrastructure February 2019 Distribution and Network June 2015 May 2015 Energy Distribution and Network Keppel Merlimau Cogen DataCentre One City G
Slide 4: Completion of the Ixom Acquisition on 19 February 2019
Completion of the Ixom Acquisition on 19 February 2019 Alignment with KIT’s investment strategy: ✓ Long-term stable cash flows with potential growth ✓ Provides key products and fundamental services ✓ Strong and stable business sectors ✓ Significant scale with large infrastructure network 1 A Strong
Slide 5: DPU Yield Accretive Acquisition
DPU Yield Accretive Acquisition Acquisition Summary Equity Fund Raising ▪ Equity Fund Raising by way of (i) Preferential Offering, (ii) Preferential ▪ EV: A$1,100 million (approx. S$1,072 million(1)) Offering & Placement, or (iii) Rights Issue ▪ The acquisition was funded through a bridge facility o
Slide 6: Ixom – Enhancing the Value Proposition of KIT
Ixom – Enhancing the Value Proposition of KIT
Slide 7: Ixom – A Defensive Industrial Infrastructure Business
Ixom –AADefensive Ixom: DefensiveIndustrial IndustrialInfrastructure InfrastructureBusiness Business (1) ~80% EBITDA SOLE backed by Manufacturer and provider of infrastructure assets liquefied chlorine in AUS(2) ~A$900M (2) LEADER Asset Replacement Value Amongst the leading industrial is underpinned
Slide 8: Ixom: Overview of Business
Ixom’sOverview Ixom: BusinessofOverview Key Businesses Ixom provides key chemicals to diverse end markets Caustic soda and Chlorine and Industrial, Packaged & Key segments Water Treatment & New Zealand chlorine derivatives Bulk - Bulk Other Chemicals Description ▪ Produces water ▪ Produces caustic s
Slide 9: Ixom's Business is Supported by High Barriers To Entry
Ixom’s Business 1. A Strong is Supported and Stable by High Infrastructure Barriers To Entry Business Characteristics Ixom’s Operations ▪ Scale and well-positioned locations give Ixom a leading market position a) Solid asset ▪ Network of over 70 infrastructure assets with a replacement value of appr
Slide 10: 1. Supported by an Extensive Network of Infrastructure Assets
1. Supported by an Extensive Network of Infrastructure Assets 1 2 3 Strong and stable business Large network of Well-positioned locations infrastructure assets due to scale and positioning enhances reliability of supply across key regions in Australia of infrastructure network and New Zealand AUSTRA
Slide 11: 2. Business with Growth Potential
2. Business with Growth Potential Stable cash flows ▪ Stable and resilient cash flows as approximately 80% of EBITDA is backed by infrastructure assets(1) Global milk demand is forecast ▪ Ixom’s chemicals are vital to customers’ operations to increase by >35% in 2030(3) ▪ Supported by favourable lon
Slide 12: 2. Illustration of Critical Chemicals Used in Selected Industries
2. Illustration of Critical Chemicals Used in Selected Industries Water treatment process Chemical Water disinfection is Sedimentation Coagulation Filtration treatment a critical step in the water Chlorine Disinfected treatment Stabilisation (liquid & hypo) w. chlorine process Cleaning in Place proc
Slide 13: 3. Stable and Resilient Cashflow
3. Stable and Resilient Cashflow Diversified customer base Supported by diverse customer base Ixom has a diversified customer base, comprising Concentration of customers(1) many blue-chip companies and municipalities, supporting stable and resilient cashflow 15% 1 Key infrastructure assets are well-
Slide 14: 4. Strengthen KIT's Portfolio Mix and Overall Value Proposition
4. Strengthen KIT’s Portfolio Mix and Overall Value Proposition Increases exposure to the ‘Distribution & Network’ segment for greater stability Asset Breakdown (KIT)(1) Asset Breakdown (with Ixom)(1) Waste and Water Energy Waste and Water Energy 19% 28% 13% 19% 13% 19% 19% 28% 0.5% 0.7% 22.5% 19% 3
Slide 15: Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA This information is for illustration purposes only EBITDA by Asset (KIT)(1),(2) EBITDA by Asset (with Ixom)(1),(2) Waste and Water Energy Waste and Water Energy 34% 21% 22% 15% 15% 21% 22% 34% 2% 14% 21% 4% 13% Distribution 34% Distribution 20% and Network and Network 45% 6
Slide 16: Pro Forma Financial Effects
Pro Forma Financial Effects This information is for illustration purposes only As at 31 December 2018 Preferential Offering and Rights Issue(2),(3) the Placement(1) (S$ cents) KIT Group KIT Group KIT Group Change Change (with Ixom) (with Ixom) Cash Flows Funds from operations (S$’m) 161 221 +37.3% 2
Slide 17: Keppel Infrastructure Trust Structure with Ixom
Keppel Infrastructure Trust Structure with Ixom Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise asset management platform and track record in this ind
Slide 18: Thank You
Thank You www.kepinfratrust.com
Slide 19: Appendices
Appendices
Slide 20: History of Ixom
History of Ixom Growth and Development of Ixom over the years … 2002 - 2006 Expanded through acquisitions of new businesses and plants, as well as upgrading of existing plants:- 1950s 2017 Development of Botany ▪ Acquired Marplex Restructured the chlor-alkali plant ▪ Entered into water treatment tra
Slide 21: Three-Pronged Growth Strategy
Three-Pronged Growth Strategy Provide long-term, regular and predictable distributions 1 2 3 Organic Growth from Existing Portfolio Keppel Synergy Acquisition Strategy KIT New Investments Keppel Capital ◼ Businesses / Assets that generate ◼ Bridge financing long term stable cash flows with some grow
Slide 22: Portfolio Overview: Distribution & Network
Portfolio Overview KIT’s portfolio comprises highly strategic assets providing industrial chemicals, utilities, power and telecoms infrastructure Description Customer and Contract Terms Primary Source of Cash Flows Industrial infrastructure business in Australia Payments from customers for delivery
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