4Q & FY 2018 Financial Results 24 January 2019
Scope of Briefing Address by CEO • Group Financial Highlights by CFO • Note: 2017 financial figures in this presentation have been restated following the adoption of the new financial reporting framework, Singapore Financial Reporting Standards (International). 2
Address by CEO 3
Transforming for Growth Cleaner energy & & renewables Ene nergy gy Urb Urban l living Offshore re & & Mari rine Sm Smart rt c cities & q & quality ty real estat state Seni nior or l living ng Conne onnectivity Pro ropert rty Keppel Solutions Opportunities Floati ating i infrastr structu ture & & Infra rastru ructure re data c ata centr tre p par arks ks Clean an Asset M1 M1 trans nsfor ormation on env nviron onment nts mana nage gement nt Investments 4
Financial Performance Key h highl ghlight ghts Net profit • ROE was 8.3% 944 S$944m S$944 • EVA was S$252m 815 • Free cash inflow of S$515m in S$m FY 2018 net profit up 382% from S$196m for 619 i 944 FY 2018 vs S$1,802m in FY 2017 FY 2017 196 • Net gearing was 0.48x at 0 15.0 cts 15. ts/s /share end-2018 vs 0.46x at end-2017 FY 2017 FY 2018 Proposed final cash dividend will bring total S$m FY 2017 FY 2018 FY 2018 dividends to 30.0 cts/share Offshore & Marine (826) (109) Property 650 938 Infrastructure 134 169 Investments 238 (54) Total 196 944 i One-off global resolution & related costs 5
Multiple Income Streams Net profit by income type Recurring income breakdown 944 S$307m S$247m 815 197 20% 20% 186 247 28% 30% 307 S$m Focused on improving earnings 12% 24% quality and growing recurring income 500 as a stable contributor to the Group 322 38% 28% 0 0 ii FY 2017 FY 2018 FY 2017 FY 2018 i REITs & trust Project-based Recurring RIDs Asset management Infrastructure i Revaluations, major impairments & divestments ii Excludes one-off global resolution & related costs 6
Offshore & Marine LNG vessels at Keppel Shipyard, Singapore
Offshore & Marine Key h highl ghlight ghts Net profit • FY 2018 net loss including RIDs down 47% ii yoy S$39m S$39m FY 2017 FY 2018 • Made S$167m additional 8 0 provision for losses on semis for (117) (205) 4Q 2018 net profit excluding RIDs Sete and S$32m impairments on (109) (2) other assets in 4Q S$m S$6m S$6m • Wrote back S$96m of provisions (619) for claims in 4Q FY 2018 net profit excluding RIDs (826) I Includes contributions from Floatel, Seafox and Dyna-Mac, etc. ii Comparison excludes one-off global resolution & related costs in 2017 8
Offshore & Marine Net orderbook i 4.3 3.9 0.3 0.1 LNG and scrubber projects worth 0.9 Secured new contracts of 0.7 over S$600m secured in 2018 ~S$1.7b in 2018 S$b 2.1 2.2 • Received LNTP iii to commence early • Net orderbook of S$4.3b as at 0.2 0.5 end-2018 conversion works for Gimi FLNG 0.7 0.5 0 End-2017 End-2018 • Won 65 scrubber retrofitting jobs Newbuild jackups Newbuild semis FPSOs/FLNGs Specialised vessels ii Others i Excludes semis for Sete ii Includes modification, upgrading, fabrication and rig repairs iii Limited Notice to Proceed 9
Property Artist’s impression of Seasons Heights in Tianjin, China 10
Property Net profit • Completed 7 acquisitions totaling ~S$0.8b in 2018 • Including residential sites 938 67 in China & Indonesia, and increased stakes in Saigon 650 278 Sports City and a Singapore 67 1 retail mall FY 2018 net profit up 44% yoy 213 S$m 611 Supported by en bloc sales and divestment gain • Completed 10 divestments/en bloc 369 from Beijing project sales totaling ~S$1.7b in 2018 0 (18) • Including residential projects and a commercial project FY 2017 FY 2018 in China, and a stake in a Property trading Property investment Vietnam company Hotels/Resorts REIT 11
Property Home sales 5,480 - 265 Residential landbank of ~50,000 Commercial portfolio with total 380 4,440 units GFA of 1.5 million sm 1,110 780 350 160 • Sold ~4,440 units in 2018, with total • ~60% of commercial GFA under Units sales value of ~S$1.8b development 910 3,725 • Sold 5 projects equivalent to • Acquiring a completed commercial 2,240 ~11,500 units sold en bloc in 2018 property in Haidian District, Beijing, China’s IT hub • Sale of 8,410 overseas units worth 0 FY 2017 FY 2018 ~S$2.7b recognisable from 2019-21 China Vietnam Singapore • ~19,000 units launch-ready Indonesia India from 2019-21 12
Capturing Opportunities in China Focused on long-term growth Acquir ired s sit ites i s in m markets w s wit ith robus ust suppl ply-de demand d dynami mics 3 r regi gions ns + 1 1 city te i (end-20 Home supply a absorption rate 2018) 18) Estimated Jing-Jin-Ji City absorption rate Population: 90 million (months) GDP: US$1,100b Nanjing 5.2 Yangtze River Delta Chengdu 5.1 Population: 140 million GDP: US$3,080b Sino-Singapore 5.6 Chengdu Tianjin Eco-City Greater Bay Area Population: 16 million GDP: US$210b Population: 70 million i Based on home supply with pre-sales permit vs average GDP: US$1,470b monthly demand over the past 5 years Sources: China Real Estate Index System, REALLYDT & Kaicheng Real Estate 13
Infrastructure Artist’s impression of IndoKeppel Data Centre 1 in Bogor, Indonesia
Infrastructure Net profit • Secured ~S$120m contracts in 2018 for energy & environmental infrastructure 169 • KMEDP i 65% completed; HKIWMF ii 76 134 design & engineering on track 10 15 S$m • Keppel Electric growing clientele FY 2018 net profit up 26% yoy across commercial, industrial & 109 117 household sectors Supported by higher contributions from data centre, environmental infrastructure and infrastructure 0 service businesses • Keppel Logistics expanding (24) omnichannel logistics business FY 2017 FY 2018 Keppel Infrastructure Data centres i Keppel Marina East Desalination Plant Logistics & others ii Hong Kong Integrated Waste Management Facility 15
Infrastructure Expanding data ta c centr tre p portfolio Net lettable area (sq ft) 22 22 data cent ntres es 1.7 .7 m mil il Spanning 14 cities in Asia-Pacific & Europe 1.4 .4 m mil il 1.4 .4 m mil il 0.9 .9 m mil il ~S$ ~S$2.7b 0.6 .6 m mil il Combined portfolio value i of data centres completed and under development 2014 2015 2016 2017 2018 i Includes estimated development costs for 3 projects currently under development Floating data centre parks High-rise green data centres 16
Investments Maitland Promenade I office property in Orlando, Florida, U.S. 17
Investments Net profit • Keppel Capital announced acquisitions of over S$2.0b and closed AAMTF ii III at ~US$1.1b 238 97 • Keppel Urban Solutions entered 46 S$m MOU to develop smart IoT city in 120 Wuxi, China 48 21 22 FY 2018 net loss due mainly to share 73 56 0 • Tianjin Eco-City master developer of losses from KrisEnergy and (80) sold three land plots iii for RMB3.4b (119) impairment of investment in an (53) associated company (47) (54) FY 2017 FY 2018 i Share of associated companies’ results Asset management KrisEnergy i ii Alpha Asia Macro Trends Fund M1 i SSTEC i iii Profit from land plot sold to Keppel Land will be recognised Others Write-back/(impairment) of when units are sold and completed by Keppel Land an associated company 18
Pursuing Growth Opportunities LNG solutions Connectivity Renewable energy Smart sustainable cities Senior living 19
Group Financial Highlights by CFO 20
4Q 2018 Financial Performance Key y highli ighlight ghts S$m 4Q 2018 4Q 2017 % Change Net Profit from net loss of Revenue 1,677 1,545 9 S$492m to net profit of S$135m EBITDA 55 197 (72) EVA from negative S$886m Operating Profit 5 147 (97) to negative S$132m Profit/(Loss) Before Tax 164 (417) i nm Net Profit/(Loss) 135 (492) i nm EPS (cents) 7.4 (27.1) i nm i Includes one-off financial penalty from global resolution & related costs 21
4Q 2018 Financial Performance (Excluding one-off global resolution & related costs) Key y highli ighlight ghts S$m 4Q 2018 4Q 2017 % Change Net Profit 6% to S$135m Revenue 1,677 1,545 9 EBITDA 55 197 (72) EVA from negative S$267m Operating Profit 5 147 (97) to negative S$132m Profit Before Tax 164 202 (19) Net Profit 135 127 6 EPS (cents) 7.4 6.9 7 22
4Q 2018 Revenue by Segments S$m 4Q 2018 % 4Q 2017 % % Change Offshore & Marine 520 31 490 32 6 Property 373 22 432 28 (14) Infrastructure 744 44 593 38 25 Investments 40 3 30 2 33 Total 1,677 100 1,545 100 9 23
4Q 2018 Pre-tax Profit by Segments (Excluding one-off global resolution & related costs) S$m 4Q 2018 % 4Q 2017 % % Change Offshore & Marine (97) (59) (256) (127) (62) Property 215 131 361 179 (40) Infrastructure 50 30 52 26 (4) Investments (4) (2) 45 22 nm Total 164 100 202 100 (19) 24
4Q 2018 Net Profit by Segments (Excluding one-off global resolution & related costs) S$m 4Q 2018 % 4Q 2017 % % Change Offshore & Marine (71) (53) (218) (172) (67) Property 174 129 287 226 (39) Infrastructure 48 36 37 29 30 Investments (16) (12) 21 17 nm Total 135 100 127 100 6 25
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