Keppel Ltd. · SGX:BN4
Keppel — Investor Presentation (October 2016)
33 slides from Keppel's investor presentation, Oct 24, 2016
Slide 1: Solutions for Sustainable Urbanisation
Solutions for Sustainable Urbanisation Presentation to The Templeton Emerging Markets Group Delivered by: Mr Loh Chin Hua CEO, Keppel Corporation Limited 24 October 2016 1
Slide 2: Disclaimer
Disclaimer This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regul
Slide 3: Evolving External Environment
Evolving External Environment • Unprecedented speed • Low to negative interest rate and scale of urbanisation environment • New demand for energy, Lower clean environments, Global urban living and Growth • Shale oil revolution connectivity. • Slowing global growth Urbanisation Lower Oil • OPEC’s dec
Slide 4: Urbanisation: Unprecedented Trends
Urbanisation: Unprecedented Trends 65% of global population will Global energy demand will rise 25% from live in cities by 2040. 2014-2040: • 40% of demand growth will be 2.2 billion tonnes of annual met by natural gas municipal solid waste generated by 2025. • Oil will provide a third of total ener
Slide 5: Keppel is in the Business of Sustainable Urbanisation
Keppel is in the Business of Sustainable Urbanisation Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world’s sustainable urbanisation needs through key businesses in Offshore & Marine, Prope
Slide 6: Keppel Corporation
Keppel Corporation Offshore & Marine Property Infrastructure Investments • Offshore rig design, • Property • Energy & related • Asset construction, repair development infrastructure management and upgrading •Property & • Logistics & data infrastructure • Ship conversion centres trusts and repair •Pr
Slide 7: Keppel's Vision 2020
Keppel’s Vision 2020 Financial People • Net profit target • Strong succession pipeline • Sustainable ROE • Tapping global talent pool • PE ratio target • High employee satisfaction • Higher recurring income • Institutional quality balance sheet Stakeholders Process • Zero fatalities, zero audit fail
Slide 8: Harnessing Strengths
Harnessing Strengths Core Strengths: Building Strong Verticals + Collaboration: SYNERGY Offshore & Property Infrastructure Investments Technology Engineering Marine & Project & Innovation Management Capital Operating & Management Maintenance Townships Data Centres Gas Value Chain 88
Slide 9: Scaling the Value Chain (moving to the right)
Scaling the Value Chain (moving to the right) The world is changing; business models must also evolve from asset heavy to asset light and high value adding businesses. An example from the data centre industry: Wholesale Retail Managed Managed Real Estate Development Cloud Colocation Colocation Hos
Slide 10: Creating & Capturing Sustainable Value
Creating & Capturing Sustainable Value Capturing value: Project-based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation Operation & Divestment Fee-based • Offshore & Marine • Property OWN STABILISE TRUSTS • Infrastruct
Slide 11: Sector Updates & Outlook
Sector Updates & Outlook 11 11
Slide 12: Offshore & Marine
FLNG conversion project, Golar Hilli Offshore & Marine 12 12
Slide 13: Offshore & Marine Outlook
Offshore & Marine Outlook OIL SUPPLY CURVE TODAY OIL PRICE DYNAMICS CTL Global oil production supply curve GTL Asia DW • Structural changes in oil Permian tight SA DW (primarily Brazil) supply/demand - flattening supply Arctic Canadian Oil Sands curve due to: 1- Emergence of abundant LTO as a August
Slide 14: Meeting Challenges with Agility
Meeting Challenges with Agility Rightsizing and managing costs Reduced Keppel O&M’s overheads by 20% year on year Reduced direct workforce by close to 13,900 (~40%) and subcontract headcount in Singapore by 9,500 (~30%) since the start of 2015 Reviewing yard capacity and streamlining operation
Slide 15: Positioning for the Future
Positioning for the Future Investing prudently in R&D and new capabilities Acquired Letourneau rig designs and after market sales/services Exploring other markets and opportunities Repurposing existing solutions for non-oil and gas projects Growing presence in markets for LNG, floating product
Slide 16: Providing Diverse Solutions
Providing Diverse Solutions Offshore Single/Dual Fuel PreNEx Liquefaction Desalination Floating Power Barge Technology Specialised Vessels LNG Transportation & Bunkering 16 16
Slide 17: Property
Saigon Centre Phase Two, Ho Chi Minh City Property 17 17
Slide 18: Tapping Strong Urbanisation Trends
Tapping Strong Urbanisation Trends Keppel is meeting the needs of urbanisation in Asia Core markets: Singapore and China Growth markets: Vietnam and Indonesia Growth strategies Scale up in high-growth cities Selectively acquire completed assets Invest opportunistically in developed markets
Slide 19: Resilient Demand for Homes
Resilient Demand for Homes Keppel Land sold an average of above 3,600 homes p.a. over the past six years. Home Sales ~2,600 overseas homes slated for launch in 4Q 2016 6,000 5,370 5,000 4,570 4,500 4,000 3,510 Units 3,000 2,500 2,450 2,350 2,000 1,000 - 2010 2011 2012 2013 2014 2015 9M 2016 China Si
Slide 20: Quality Homes
Quality Homes Pipeline of above 70,000 homes across Asia; >16,000 units slated for launch from now till 2018. Waterfront Lifestyle Developments City Centre Homes Mixed-use Developments and Integrated Townships 20 20
Slide 21: Distinctive Commercial Developments
Distinctive Commercial Developments Above 1 million sm of commercial GFA being developed overseas. Keppel Land is Singapore’s largest developer of Grade A office buildings One Raffles Quay Marina Bay Financial Ocean Financial Centre Centre Growing commercial portfolio overseas in cities such as
Slide 22: Sino-Singapore Tianjin Eco-City
Sino-Singapore Tianjin Eco-City The Eco-City in 2008 The Eco-City in 2016 A model for sustainable urbanisation in China Transforming 30-sq km of non-arable water-scarce land Collaboration between Keppel’s Property, Logistics and Infrastructure businesses Home to 60,000 residents and 4,000 regi
Slide 23: Focused on Returns
Focused on Returns Keppel Land aims to be developer with highest return in Asia ROE was 18.9% per annum over past 10 years Proactive capital recycling for best risk-adjusted returns Eg. Divestment of Lifehub@Jinqiao in Shanghai Rightsize property book in response to market opportunities 23 23
Slide 24: Infrastructure
Keppel DC Singapore 2 & 3, Singapore Infrastructure 24 24
Slide 25: Energy-related Infrastructure & Services
Energy-related Infrastructure & Services Gas-to-Power Waste-to-Energy X-to-Energy Infrastructure Services Developer of power Developer of WTE Developer and Provides operating and plants plants and provider of operator of district maintenance services for technology packages cooling systems i
Slide 26: Established Logistics Network
Established Logistics Network Keppel T&T is meeting the growing demand for quality logistics services in Asia Pacific. 3PL operations spanning 6 countries Present in 7 cities across China with 3PL and integrated river port logistics services Acquired stake in e-commerce fulfillment company, Co
Slide 27: Quality Data Centre Assets
Quality Data Centre Assets Portfolio of 15 quality data centres across Asia Pacific & Europe. Asia-Pacific Keppel DC Keppel DC Singapore Cyberjaya*, iSeek*, Gore Hill Data Intellicentre 2*, Singapore 1* 2* & 3** &4** Malaysia Brisbane Centre* Australia European GV7*, Almere 1* & 2**, maincubes Data
Slide 28: Investments
Ocean Financial Centre, Singapore Investments 28 28
Slide 29: Established Track Record for Asset Management
Established Track Record for Asset Management AUM of Keppel-managed funds and trusts grew at a CAGR of ~30% over the past ten years. AUM 30 26 25 21 ~ 30% p.a. 20 17 S$b 15 15 15 12 10 6 6 4 5 2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Alpha Investment Partners Keppel Infrastructure Trust
Slide 30: Fueling Growth through Asset Management
Fueling Growth through Asset Management Boosting the Group’s capital recycling platform and expanding its capital base with co-investors. Harnessing synergies to: Private Funds increase recurring Property Among SGX’s fee income largest Pan-Asian commercial REITs Manages 6 property improve re
Slide 31: Driving Collaboration
Driving Collaboration The Alpha Data Centre Fund harnesses synergies across the Group’s business verticals to create sustainable value with capital efficiency. Keppel Keppel Keppel Keppel Capital T&T Land Infrastructure Fund management Development & Power & cooling services operational services solu
Slide 32: Creating Synergies
Creating Synergies Keppel Keppel Keppel Keppel Keppel Keppel Keppel Keppel Keppel Land Infrastructure Land Capital Capital T&T Land O&M Infrastructure Alpha Data Centre Fund Offshore Desalination Inter-BU Sales & Services Life Hub @ Jinqiao (Target size: US$500m) Plant Keppel Land’s office Monet
Slide 33: Keppel is in the business of sustainable urbanisation
Keppel is in the business of sustainable urbanisation. We drive collaboration across business verticals to create and capture value from all parts of the Group. 33 33