Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (April 2024)
41 slides from Keppel Infrastructure Trust's investor presentation, Apr 11, 2024
Slide 1: SIAS Dialogue Session
SIAS Dialogue Session 11 April 2024
Slide 2: Important Notice
Important Notice NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, EUROPEAN ECONOMIC AREA, CANADA, JAPAN, MALAYSIA, THAILAND OR AUSTRALIA The information contained in this presentation is for information purposes only and does not constitute or form part of, a
Slide 3: Outline
Outline ▪ Highlights 4 ▪ Proposed Acquisition of Ventura 9 ▪ KMC CTA Extension and Capital Restructuring 20 ▪ Market Outlook and Growth 23 ▪ Additional Information 27 Constituent of: Awards and Accreditations1: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 1. Keppel Infrastructure Fun
Slide 4: Highlights
Highlights European Onshore Wind Platform
Slide 5: FY 2023: Record Year
FY 2023: Record Year Driven by strong portfolio performance from growth and value creation Record EBITDA, Distributable Income and DPU Record EBITDA Record DPU (cents) $463.7m1 6.193 Record DPU 3.72 3.72 Up 15.3%y-o-y 3.78 3.82 62% y-o-y including special FY 2023 Total Returns4 distribution of 2.33
Slide 6: Value Creation a Key Differentiation for KIT
Value Creation a Key Differentiation for KIT Driving growth of businesses through focused portfolio optimisation plans
Slide 7: Driving Portfolio Growth through Acquisitions and Value Creation
Driving Portfolio Growth through Acquisitions and Value Creation Well-positioned for growth Expand into transportation infrastructure 2023-2024 milestones Acquisition of Ventura Made 1st solar investment German Solar Portfolio Feb 2024 Jan 2024 Dec 2023 Concession and CTA extensions Dec 2022 Senoko
Slide 8: Deepen Renewables Exposure with First Solar Portfolio Investment
Deepen Renewables Exposure with First Solar Portfolio Investment Attractive de-risked portfolio backed by 20-year lease contracts with German households ▪ Acquisition of a 45% stake in a German solar portfolio comprising > 60,000 bundled solar photovoltaic (PV) systems, including > 55,000 battery st
Slide 9: Proposed Acquisition of Ventura
Proposed Acquisition of Ventura Ventura
Slide 10: Ventura: A Leading Bus Operator and Essential Infrastructure and Public Service
Ventura: A Leading Bus Operator and Essential Infrastructure and Public Service Essential service that supports Melbourne’s population growth ▪ KIT to acquire approx. 98.6%1 interest in Ventura Motors Pty Ltd (Ventura), the largest bus operator in Victoria ▪ Accretive acquisition: FY2023 DPU to incr
Slide 11: Ventura: A Century of Service History
Ventura: A Century of Service History Victoria’s largest bus operator, providing essential transport services in Melbourne 100 years ~900 bus fleet ~37% A$290m3 Operations (since 1924) including 27 ZEBs1 Market share2 FY2023 revenue >42m p.a. 12 depots ~100% A$84m3 Passengers transported Serving ~53
Slide 12: Defensive cash flows with cost indexation and capital reimbursement
Defensive cash flows with cost indexation and capital reimbursement > 80% of revenues derived from long-term inflation-protected government contracts with no farebox risk Government Private Mass Transit Public Schools Private Charter Private Schools High frequency services Bus services contracted to
Slide 13: Rationale for the Acquisition
Rationale for the Acquisition 1 2 3 4 5 6 Largest bus operator in Defensive cash Accretive Electrification Attractive Platform of Victoria and a flows with cost acquisition that thematic market with scale to capture core pillar of indexation and strengthens supporting favourable growth Melbourne’s c
Slide 14: 1. Largest Bus Operator in Victoria with best-in-class performance
1. Largest Bus Operator in Victoria with best-in-class performance Core pillar of Melbourne’s transportation landscape ▪ Largest share of commuter bus services market in Victoria ▪ Fast-growing private bus charterer in Victoria, serving numerous schools and supporting tourism and general charter ▪ C
Slide 15: 2. Attractive Market with Favourable Tailwinds
2. Attractive Market with Favourable Tailwinds Buses: An essential transport link between Melbourne’s fastest growing regions Melbourne Key Growth Drivers A Residential development Continuing growth in mass-transit bus service kilometres is expected to be driven by residential developments in outer
Slide 16: 3. Defensive Cash Flows with Cost Indexation and Capital Reimbursement
3. Defensive Cash Flows with Cost Indexation and Capital Reimbursement Majority of revenues derived from long-term, inflation-protected government contracts ▪ Fixed payments; inflation-protected > 80% of revenues − No farebox and patronage risk from MBSCs1 − Stable revenue based on service delivery
Slide 17: 4. Platform of Scale to Capture Growth Opportunities
4. Platform of Scale to Capture Growth Opportunities Accelerate growth within existing business and adjacent verticals Capture upsides within key regions Leveraging technology for vertical and horizontal growth 1 Increase service kilometres 3 Grow new revenue streams Differentiating on technology 4
Slide 18: 5. Accretive Acquisition that Strengthens Portfolio Resiliency
5. Accretive Acquisition that Strengthens Portfolio Resiliency Pro forma DPU to increase by 3.4%2 Funds from Operations (“FFO”)2 Enlarged Portfolio: AUM to grow by 7% to S$8.7b1 post-acquisition 6.1% From S$287.9m3,4 in FY 2023 to S$305.6m6 By Business and Assets Assets under Management (“AUM”) By G
Slide 19: 6. Electrification Thematic Supporting KIT's ESG Targets
6. Electrification Thematic Supporting KIT's ESG Targets Ventura is the first mover for energy transition in Victoria’s public transportation sector KIT’s carbon emissions intensity Carbon emissions (‘000tCO2) / Distributable Income (S$m) Owns and operates Victoria’s first fully electric bus depot 9
Slide 20: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Keppel Merlimau Cogen Plant
Slide 21: Overview
Overview Keppel Merlimau Cogen Plant ▪ Located on Jurong Island, and connected to Singapore’s electricity transmission network, the KMC plant is well positioned to support the surrounding industries with their electricity, steam supply and demineralised water requirements ▪ Under the terms of the CT
Slide 22: KMC CTA Extension and Capital Restructuring
KMC CTA Extension and Capital Restructuring Allow KMC to resume Distributable Income contributions to KIT Extension of CTA and OMSA by 10 years Resume Distributable Income ✓ KMC continues to receive Capacity Fees of up to S$108m p.a. from contributions to KIT 2030 to 20401 ✓ Extension of OMSA ensure
Slide 23: Market Outlook and Growth
Market Outlook and Growth German Solar Portfolio
Slide 24: Market Outlook
Market Outlook Infrastructure: Driving Sustainable Development Resilient sector amid market turmoil.. … powered by the Energy Transition sector .. and transit towards the circular economy ▪ Investor appetite for infrastructure ▪ US$4.6 trillion in global energy transition ▪ Continued demand for wast
Slide 25: Continued Focus on Growth
Continued Focus on Growth Leveraging on the Sustainable Infrastructure theme ▪ Actively pursue third party evergreen businesses Focus on developed markets in APAC and Europe; and yield-accretive investments opportunistic for the rest of the world Optimise portfolio through asset recycling, unlocking
Slide 26: Drawing on Keppel's Deep Engineering and Operating Capabilities
Drawing on Keppel’s Deep Engineering and Operating Capabilities Operator-oriented DNA: Strong emphasis on value-adding and active management Energy Infrastructure Environmental Infrastructure Global ▪ Developer of Singapore’s 1st independent power project, Keppel Merlimau Cogen (1.3GW) ▪ Keppel's In
Slide 27: Additional Information
ICEPPEL INFRASTRUCTURE TRUST Additional Information
Slide 28: Largest SGX-listed Infrastructure Business Trust
Largest SGX-listed Infrastructure Business Trust1 Providing exposure to the resilient and growing global infrastructure sector S$8.1b AUM Essential businesses >10 mature economies Portfolio of scale providing global and assets Focused on investment grade jurisdictions with well-developed regulatory
Slide 29: Building the Infrastructural Foundation for a Sustainable Future
Building the Infrastructural Foundation for a Sustainable Future Supports energy transition, safeguards the environment and drives economic growth
Slide 30: FY 2023 Financial Performance at a Glance
FY 2023 Financial Performance at a Glance Achieved Record EBITDA for City Energy, Ixom and Philippine Coastal Energy Transition Environmental Services Distribution & Storage ▪ Higher DI contributed by AGPC and wind ▪ Higher DI supported by full year ▪ Ixom’s EBITDA in AUD up by 5%; lower DI farm ass
Slide 31: Business Updates: Energy Transition
Business Updates: Energy Transition ▪ City Energy ̶ Expanded product offerings with the acquisition of TSH’s LPG business, the second largest LPG cylinder distributor in Singapore, allowing City Energy to grow into a new market ̶ Exclusive rights to extend EV charging services to ~20,000 carpark lot
Slide 32: Business Updates: Environmental Services
Business Updates: Environmental Services ▪ EMK ̶ Maintained high availability and full utilisation of incineration capacity ̶ Higher volume for landfill business: Secured new contracts from blue chip customers ̶ Seeking growth opportunities through accretive bolt-on acquisitions ▪ Singapore waste an
Slide 33: Business Updates: Distribution & Storage
Business Updates: Distribution & Storage ▪ Ixom ̶ Strong volume and pricing across coagulants, caustic and sodium hypochlorite in Australia ̶ Increased volume from the industrial and dairy segments of the New Zealand business ▪ Philippine Coastal ̶ Tank utilisation rate of almost 100% as at end-Dec
Slide 34: Voluntary Independent Portfolio Valuation
Voluntary Independent Portfolio Valuation Portfolio AUM of $8.1b with new acquisitions and value creation initiatives ▪ Improve transparency and better reflect asset values which are largely recognised at cost in statutory reports ▪ Higher valuation of existing portfolio: $7.4b vs $7.3b for FY 2022
Slide 35: Distributable Income
Distributable Income S$’000 2H 2023 2H 2022 +/(-) % FY 2023 FY 2022 +/(-) % Energy Transition 50,034 78,916 (36.6) 147,706 115,667 27.7 Record DPU for FY 2023 - City Energy 20,545 26,506 (22.5) 52,730 40,274 30.9 - Aramco Gas Pipelines Company 18,200 26,533 (31.4) 48,817 26,533 84.0 8 Distribution P
Slide 36: Balance Sheet
Balance Sheet Building a strong balance sheet to support growth plans Undrawn committed credit facilities Balance Sheet (S$’m) 31 Dec 2023 31 Dec 2022 $478m Cash 482.6 535.7 Interest Coverage Ratio (MTN) Borrowings 2,717.0 2,907.2 14.7x Net debt 2,234.4 2,371.5 Weighted average interest rate Total a
Slide 37: Capital Management
Capital Management Well-diversified debt maturity profile with healthy capital management metrics ▪ Obtained $100m in corporate loan facilities in 4Q 2023 to support 2024 acquisitions ▪ Reviewing KMC’s capital structure to allow the plant to resume contributions to KIT ▪ Mitigating impact of currenc
Slide 38: Sustainability at the Core
Sustainability at the Core On track to achieve ESG targets ▪ Progressing on decarbonisation roadmap with reduction in carbon emissions intensity and increased exposure to renewables; continue to promote workplace diversity and develop human capital Carbon Emissions Intensity1 Volunteering Hours2 Boa
Slide 39: Energy Transition
Portfolio Overview as at 31 Dec 2023 Total Assets1 Description Customer Source of cash flows (S$’m) Sole producer and retailer of piped town gas; expanded Fixed margin per unit of gas sold, > 900,000 commercial and residential City Energy into LPG business, as well as with fuel and electricity costs
Slide 40: Environmental Services
Portfolio Overview as at 31 Dec 2023 Total Assets1 Description Customer Source of cash flows (S$’m) NEA, Singapore government agency - Waste-to-energy plant with 2,310 Senoko WTE concession until 2027 with option for Fixed payments for availability of tonnes/day waste incineration Plant up to 1-year
Slide 41: Thank You
Thank You www.kepinfratrust.com Connect with us on: Borkum Riffgrund 2
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