Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Investor Presentation (November 2015)
14 slides from Keppel Infrastructure Trust's investor presentation, November 2015
Slide 1: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue or any solicitation of any offer or invitation to purchase or subscribe for any units in Keppel
Slide 2: KIT at a glance
KIT at a glance Key Highlights Financial Snapshot Largest Singapore focused infrastructure business trust Market Value (1) Generates long term stable cashflows from a diversified Market Capitalisation S$ 2,006 m portfolio of core infrastructure assets: Enterprise Value S$ 3,401 m Sole producer and r
Slide 3: Key investment highlights
Key investment highlights 1 Flagship investment vehicle for Singapore infrastructure 2 Diversified portfolio of core infrastructure assets 3 Generates long term predictable cashflows uncorrelated to GDP 4 Strong balance sheet 5 Three pronged growth strategy 6 Attractive risk adjusted returns 3
Slide 4: Flagship investment vehicle for Singapore infrastructure
1 Flagship investment vehicle for Singapore infrastructure… Market capitalisation (1) (in S$m) $6,655 $2,006 $1,128 $827 $808 Hutchison Port KIT Asian Pay Ascendas Religare Holdings Trust Television Trust India Trust Health Trust Total assets (2) (in S$m) $20,621 $4,306 $2,612 $1,268 $1,070 Hutchiso
Slide 5: …with steady performance and enhanced liquidity
1 …with steady performance and enhanced liquidity… KIT Price / Volume Chart Closing Price (1 Jan 2014 - 2 Nov 2015) Traded volume (S$) (units) Volume Closing Price 0.650 30,000,000 18 Nov 2014: 18 May 2015: 21 Sep 2015: Announcement Completion KIT included in of merger and of merger FTSE/ ST large a
Slide 6: …and outperforming the STI Index
1 …and outperforming the STI Index KIT & STI Index Relative Movement Chart (1 Jan 2014 - 2 Nov 2015) KIT STI Index 18 May 2015: Completion of merger 20 May 2015: 21 Sep 2015: 130 Placement launched KIT included in FTSE/ ST Large 18 Nov 2014: / Mid Cap 125 Announcement Index of merger and 120 acquisi
Slide 7: Diversified portfolio of core infrastructure assets
2 Diversified portfolio of core infrastructure assets Water and Wastewater Power Generation, Electricity Waste Management Infrastructure Transmission and Gas Senoko Plant Tuas DBOO Plant Ulu Pandan Plant KMC Only waste incineration Newest of the four waste One of Singapore's A top-tier gas-fired 1,3
Slide 8: Diversified portfolio of core infrastructure assets (cont’d)
2 Diversified portfolio of core infrastructure assets (cont’d) Adjusted EBITDA (1) Total Assets as at 30 September 2015 Corporate 5% KMC Concessions 37% 18% KMC 45% Concessions 29% City Gas 11% Basslink 19% City Gas Basslink 15% 21% (1) EBITDA adjusted for reduction in concession receivables, profor
Slide 9: Generates long term predictable cash flows uncorrelated to GDP…
3 Generates long term predictable cash flows uncorrelated to GDP… Asset Contract Life Cashflows from Customers Principally fixed availability NEA, Singapore government Senoko WTE Expires in 2024 payments agency Principally fixed availability NEA, Singapore government Expires in 2034 Tuas WTE payment
Slide 10: Generates long term predictable cash flows uncorrelated to GDP… (Cont’d)
3 Generates long term predictable cash flows uncorrelated to GDP… (Cont’d) Asset Contract Life Cashflows From Customer Specified rent payments with 20-year lease from some indexation One-Net, 100% subsidiary of DC One completion with 8-year Potential for additional Mediacorp, Singapore national exte
Slide 11: …resulting in stable distributions
3 …resulting in stable distributions Quarterly Distribution Per Unit (S cents) 2 1.98 1.5 S cents/unit 1.05 1 0.93 0.82 0.82 0.82 0.82 0.78 0.5 0 1QFY15 2QFY15 3QFY15 4QFY15 Pre Combination Post Combination 1QFY16 2QFY16 Note: DPU in 1QFY16 was lower as the equity issue to finance the KMC acquisitio
Slide 12: Strong balance sheet
4 Strong balance sheet As at Sep 2015 Backed by long term contracts generating recurring and stable cash flows from credit Total Excluding worthy customers or a large customer base S$’m Basslink Cash 406 363 Blended interest rate of 4-5% 83% of loans hedged Borrowings 1,802 1,103 4.5 years average l
Slide 13: Three-pronged growth strategy
5 Three-pronged growth strategy 1 Organic growth of existing portfolio 2 Keppel sponsorship 3 Acquisition Strategy KIT New Investments Asset which generate long term stable cash flows with some growth Keppel Infrastructure Singapore and other developed Potential Upsides Keppel Group’s energy markets
Slide 14: Attractive risk adjusted returns
6 Attractive risk adjusted returns Distribution yield (1) Infrastructure trusts Singapore Industrial REITs 10.3% Average: 8.5% 8.5% 8.1% 8.0% 7.1% 7.3% Average: 7.0% 8.8% 6.4% 7.4% 7.4% 7.2% 3.4% AIMS AMP Cache Cambridge Mapletree Mapletree Ascendas Keppel DC Asian Pay Hutchison Port Religare Health
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