Slide 1: Presentation to Investors
Presentation to Investors New York 5-9 May 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: Solutions for Sustainable Urbanisation
Solutions for 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, Property, Infrastruc
Slide 4: 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 5: 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 5
Slide 6: 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 7: 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 8: Growing the Asset Management Business
Growing the Asset Management Business Keppel Capital will cull synergies by bringing together the strengths of four asset managers and enlarging the capital base with like-minded co-investors. Fund management Property One of the largest Pan-Asian commercial Manager of five private equity funds R
Slide 9: Fortifying Robust Earnings Streams
Fortifying Robust Earnings Streams Net Profit by Income Type Strong underlying operations, 1,885 underpinned by rightsizing efforts 470 1,525 and prudent investments in new 515 capabilities. 415 S$m 407 RIDs to remain a consistent 1,000 contributor to the bottom line 603 Focus on growing stabl
Slide 10: RIDs: Contributing Consistently
RIDs: Contributing Consistently RIDs have contributed an average of 23% to Keppel’s profits each year. S$m 2,500 2,237 2,000 1,946 1,885 1,846 1,511 1,525 1,500 1,000 455 470 515 434 500 284 323 0 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Net Profit Revaluations, Major Impairments & Divestment
Slide 11: Staying Resilient Through Cycles
Staying Resilient Through Cycles Restructured Keppel Energy and Keppel Integrated Offshore & Marine Property Infrastructure Investments Group net profit Engineering to form Established Keppel Keppel Infrastructure Infrastructure Trust (KIT), Listed Keppel S$m then K-Green Trust DC REIT 2,300
Slide 12: We are staying the course on our multi-business strategy
We are staying the course on our multi-business strategy, driving collaboration across our verticals for synergy to create and capture higher value from all parts of Keppel. 12
Slide 13: Additional Slides: Financial Highlights
ADDITIONAL SLIDES: FINANCIAL HIGHLIGHTS 13
Slide 14: Key Figures
Key Figures S$m FY15 FY14 % Chg 1Q16 1Q15 % Chg Revenue 10,296 13,283 (22) 1,743 2,814 (38) Operating Profit 1,514 2,373 (36) 278 398 (30) Net Profit 1,525 1,885 (19) 211 360 (41) EPS 84.0cts 103.8cts (19) 11.6cts 19.8cts (41) EVA 648 1,778 (64) 2 122 (98) Free Cash Flow (694) 729 n.m (306) 226 n.m.
Slide 15: Revenue by Segments
Revenue by Segments S$m FY15 % FY14 % 1Q16 % 1Q15 % Offshore & Marine 6,241 61 8,556 64 818 47 1,927 68 Property 1,926 19 1,729 13 503 29 303 11 Infrastructure 2,058 20 2,934 22 390 22 506 18 Investments 71 - 64 1 32 2 78 3 Total 10,296 100 13,283 100 1,743 100 2,814 100 15
Slide 16: Net Profit by Segments
Net Profit by Segments S$m FY15 % FY14 % 1Q16 % 1Q15 % Offshore & Marine 481 32 1,040 55 95 45 203 56 Property 701 46 482 26 100 47 60 17 Infrastructure 207 14 320 17 14 7 22 6 Investments 136 8 43 2 2 1 75 21 Total 1,525 100 1,885 100 211 100 360 100 16
Slide 17: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 2,237 124.8 1,946 619 1,885 109.4 1,846 34.5 102.3 103.8 1,525 844 685 726 84.0 346 47.4 38.0 39.9 19.3 4Q 4Q 405 22.3 521 3Q 29.1 457 414 3Q 406 363 22.8 25.3 22.9 20.0 2Q 2Q 384 347 406 397 19.2 22.3 21.6 21.9 751 41.9 1Q 1Q 312 357 339 360 1Q 17.6 19.
Slide 18: ROE & Dividend
ROE & Dividend Annual dividend payout stayed at above 40% of net profit over the past 13 years. ROE (%) & Dividend (Cents) Distribution in specie Distribution in specie Distribution in specie ~20.9cts/share ~28.6cts/share ~9.5cts/share Plus Plus Plus 29.1% 27.2% 26.4% 25.3% 19.5% 18.8% 43.0 45.0 40.