Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — FY2022 Earnings Presentation
41 slides from Keppel Infrastructure Trust's earnings presentation, March 2023
Slide 1: Investor Presentation
Investor Presentation March 2023
Slide 2: Outline
Outline Overview 3 2H and FY 2022 Results 6 Growth Strategy 18 Commitment to Sustainability 22 Additional Information 27 Constituent of: Awards and Accreditations1: MSCI Singapore FTSE ST Large Small Cap Index & Mid-Cap Index 1. Keppel Infrastructure Fund Management Pte Ltd is a signatory to the Uni
Slide 3: Overview
& f ———— a NY lT ce INFRASTRUCTURE Qa + i, kB Overview
Slide 4: Largest SGX-listed Diversified Infrastructure Business Trust
Largest SGX-listed Diversified Infrastructure Business Trust Providing exposure to the resilient and growing global infrastructure sector S$7.3b AUM 12 evergreen businesses 10 mature economies Portfolio of scale providing global and concession assets Focused on investment grade jurisdictions access
Slide 5: Building the Infrastructural Foundation for a Sustainable Future
Building the Infrastructural Foundation for a Sustainable Future Focus on evergreen, yield accretive businesses and assets that will benefit from secular growth trends 2 WTE plants with a combined Capable of processing up Made headways in capacity to treat approx. 40% of to 16% of desalinated renewa
Slide 6: 2H and FY 2022 Results
2H and FY 2022 Results Philippine Coastal
Slide 7: FY 2022 Highlights
FY 2022 Highlights Strong performance supported by portfolio growth and transformation Distributable income (DI) Total Assets Benefit from inflation +32% +15.8% $222.5m $6.0b >90% Supported by higher contributions from Enlarged footprint with investments in ~65% of portfolio with costs pass through
Slide 8: Driving Portfolio Growth through New Acquisitions
Driving Portfolio Growth through New Acquisitions Expanding presence to AA and AAA-rated countries in Asia and Europe 2019 2021 2022: Increased Total Assets by 32% to $6.0b as at end-Dec 2022 Sep 2022 Oct 2022 Dec 2022 Jun 2022 Jun 2022 Acquired a 52% Acquired a 20.5% Jun 2022 interest in BKR2, inte
Slide 9: Growing the Energy Transition and Environmental Service sectors
Growing the Energy Transition and Environmental Service sectors Completed three transformative acquisitions in 2H 2022 that support long-term DIPU growth European Onshore Wind Platform1 BKR2 – German Offshore Wind Farm1 EMKH – Integrated Waste Platform1 ▪ 3 operating wind farms in Norway and ▪ 465MW
Slide 10: Growing the Energy Transition and Environmental Service sectors (cont'd)
Growing the Energy Transition and Environmental Service sectors (cont’d) ▪ Strong sectoral megatrends underpin portfolio Accounts for 16% of KIT’s 1 Transformative acquisitions that align with KIT’s growth strategy ▪ Well-balanced mix of infrastructure businesses and assets in developed markets with
Slide 11: Energy Transition
Energy Transition Ene Distributable Income (S$m) ▪ European renewable energy investments rgy 115.7 4.9 0.9 ̶ European Onshore Wind Platform and BKR2 continue to benefit from higher electricity prices 74.3 55.5% Tran 26.5 ̶ Continue to monitor the energy regulatory policies in Europe 30.5 sitio 40.3
Slide 12: Environmental Services
Environmental Services Distributable Income (S$m) ▪ Eco Management Korea Holdings (EMKH) 70.3 ̶ Re-appointed CEO; business integration in progress 71.3 (1.5)% ̶ Maintained full utilization of incineration business; oil refining and landfill business remained healthy 72.3 ▪ Singapore waste and water
Slide 13: Distribution & Storage
Distribution & Storage Distributable Income (S$m) ▪ Ixom ̶ Completed three bolt-on acquisitions in FY 2022: Bituminous 9.5% 102.6 Products, Aromatic Ingredients and Pure Ingredients 93.7 ̶ Robust performance with healthy demand across sectors 85.7 95.7 ̶ Strategic review in progress, on track for co
Slide 14: Inaugural Portfolio Valuation
Inaugural Portfolio Valuation AUM of $7.3b for FY 2022 By Business and Assets ▪ Improve portfolio transparency and better reflect asset values Others, 1% Energy Transition, 60% ▪ Conducted by independent third-party valuer, Ernst & Young1 S$7.3b ▪ Reflects enlarged portfolio AUM of $7.3b Distributio
Slide 15: Distributable Income
Distributable Income Stronger performance supported by portfolio growth S$’000 2H 2022 2H 2021 +/(-) % FY 2022 FY 2021 +/(-) % Energy Transition 78,916 31,285 >100.0 115,667 74,376 55.5 - City Energy 26,506 10,805 >100.0 40,274 30,528 31.9 - Aramco Gas Pipelines Company 26,533 - NM 26,533 - NM - KMC
Slide 16: Balance Sheet
Balance Sheet Building a strong balance sheet to support growth plans ▪ Comfortable debt headroom for growth: Approx. $300m to 45% net gearing level ▪ Undrawn committed credit facilities: $184m ▪ Mitigating impact of currency fluctuations: 70.5% foreign distributions hedged ▪ Weighted average term t
Slide 17: Capital Management
Capital Management Well-diversified debt maturity profile ▪ Utilised $580m of equity bridge loans (EBL) in 2022 to partially fund the acquisition of EMKH and investment in BKR2: To tap the debt and equity markets for repayment within the year ▪ Approx. 72% of floating interest rates hedged1 as at 31
Slide 18: Growth Strategy
Growth Strategy EMKH, South Korea
Slide 19: Maintain Focus on Growth and Strengthen Execution
Maintain Focus on Growth and Strengthen Execution Pathway underpinned by both organic and inorganic growth Pursue Scale Up through Leverage the Organic Growth Inorganic Growth OneKeppel Network Strengthen and grow cashflow profile of Focus on evergreen, yield accretive assets and existing portfolio
Slide 20: Maintain Focus on Growth and Strengthen Execution
Maintain Focus on Growth and Strengthen Execution Track record of transformative acquisitions paving the way for further near-term initiatives Driving Organic Growth Pursuing Inorganic Growth ✓ Continue to expand Electric Vehicle (EV) ▪ Actively pursue third party evergreen businesses and Energy yie
Slide 21: Leveraging OneKeppel Ecosystem for Sustainable Growth
Leveraging OneKeppel Ecosystem for Sustainable Growth Drawing on Keppel’s strong development capabilities and operational track record Key Milestones for FY2022 Looking Ahead Beneficiary from OneKeppel Ecosystem Increased Collaboration Tap Keppel’s network to drive origination, 1 3 execution and por
Slide 22: Commitment to Sustainability
Commitment to Sustainability European Onshore Wind Platform
Slide 23: Sustainability at the Core
Sustainability at the Core On track to achieve ESG targets Expanded portfolio in the Energy Transition and Environmental Services segments ▪ Progressing with decarbonisation roadmap: carbon emission intensity reduced by 21% YoY to approx. 8,600 tCO2e/$m, an approx. 20% drop from 2019’s level ▪ Incre
Slide 24: Advancing Sustainability, Driving Performance
Advancing Sustainability, Driving Performance Committed to achieving operational excellence that is led by our environmental, social and governance strategy and sustainability initiatives 2 WTE plants with a Capable of processing up combined capacity to treat to 19% of desalinated approx. 40% of Sin
Slide 25: Continued Community Engagements
Continued Community Engagements Uplifting communities wherever we operate ▪ Keppel Capital dedicated more than 1,000 volunteering hours to support community outreach efforts in FY 2022 Tree planting at the Labrador Nature Reserve, as part of Keppel’s pledge to plant 10,000 trees in Singapore over th
Slide 26: Thank You
Thank You www.kepinfratrust.com Connect with us on:
Slide 27: Additional Information
ICEPPEL INFRASTRUCTURE TRUST Additional Information
Slide 28: Energy Transition
Portfolio Overview as at 31 Dec 2022 Description Customer and contract terms Primary source of cash flows Total Assets (S$’m) Fixed margin per unit of gas sold, Sole producer and retailer of piped Over 886,000 commercial and City Energy with fuel and electricity costs passed town gas residential cus
Slide 29: Environmental Services
Portfolio Overview as at 31 Dec 2022 Total Assets Description Customer and contract terms Primary source of cash flows (S$’m) Waste-to-energy plant with 2,310 NEA, Singapore government agency - Senoko WTE Fixed payments for availability of tonnes/day waste incineration concession until 2024 (Singapo
Slide 30: Diversified Portfolio with Maiden Investment in the Middle East
Diversified Portfolio with Maiden Investment in the Middle East Completed the investment in Aramco Gas Pipelines Company ▪ Part of a global consortium to acquire a 49% stake in Aramco Gas Pipelines Company, which holds a 20-year lease-and- lease-back agreement over the usage rights of Aramco’s gas p
Slide 31: Making Headway in the Renewable Energy Market in Europe
Making Headway in the Renewable Energy Market in Europe Attractive portfolio of windfarm assets across the Nordics and UK Initial Portfolio ▪ Acquired a 49% stake in onshore wind platform with KLP, MEAG and Keppel Corp Lista, Högaliden, Fäbodliden, ▪ Initial Portfolio with 258MW of operating project
Slide 32: Increased Exposure in Renewables with Offshore Wind Investment
Increased Exposure in Renewables with Offshore Wind Investment Well-located windfarm in Germany backed by an attractive Feed-In Tariff (FiT) regime ▪ Jointly investing with Keppel Corporation to acquire a 25%1 stake in BKR2, a 465MW operating German offshore wind farm with a remaining useful life of
Slide 33: Acquisition of a Leading Waste Platform in South Korea
Acquisition of a Leading Waste Platform in South Korea Draw on proprietary expertise across Keppel ecosystem to value-add and grow EMKH EMKH is a leading integrated waste ▪ Jointly acquired Eco Management Korea (EMKH) with Keppel entities; management player in South Korea KIT holds 52% majority inte
Slide 34: 2H 2022: Distributable Income
2H 2022: Distributable Income 1 2 3 1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 2. Due to one-off acquisition related cost incurred for new investments which are reversed through “Transaction costs in relation to acqu
Slide 35: 2H 2021: Distributable Income
2H 2021: Distributable Income 1 2 5 3 4 1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 2. Due to one-off acquisition related cost incurred for Ixom acquisitions which are reversed through “Transaction costs in relation t
Slide 36: FY2022: Distributable Income
FY2022: Distributable Income 1 2 4 3 1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 2. Due to one-off acquisition related cost incurred for new investments which are reversed through “Transaction costs in relation to acq
Slide 37: FY2021: Distributable Income
FY2021: Distributable Income 1 2 5 3 4 1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 2. Due to one-off acquisition related cost incurred for Ixom acquisitions which are reversed through “Transaction costs in relation to
Slide 38: FY2022: Businesses and Assets Results Summary
FY2022: Businesses and Assets Results Summary City Energy KMC 1 2 1. Exclude unrealized exchange gain (S$0.2m) 2. Exclude unrealized exchange gain (S$0.02m) 38
Slide 39: FY2022: Businesses and Assets Results Summary
FY2022: Businesses and Assets Results Summary Singapore waste and water assets EMKH 1 1 1. Exclude one-off acquisition related cost incurred during the period (KRW 513.4m) 39
Slide 40: FY2022: Businesses and Assets Results Summary
FY2022: Businesses and Assets Results Summary Ixom 1 1. Exclude one-off acquisition related costs incurred (A$19.5m), unrealized exchange gain (A$0.6m) and gain on Ixom’s divestment of Fiji business (A$0.5m) 40
Slide 41: Important Notice
Important Notice 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 (“U
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