4Q & FY 2019 Financial Results 23 January 2020
Scope of Briefing • Address by CEO • Group Financial Highlights by CFO Note: An agenda decision on a clarification in relation to capitalisation of borrowing costs by property developer under IAS 23 Borrowing Costs was finalised by the International Financial Reporting Standards Interpretations Committee during the year. As the financial reporting framework applied by the Group is equivalent to International Financial Reporting Standards, the agenda decision has relevant impact to th e Group’s Property Division. Consequently, 2018 financial figures in this presentation have been restated. 2
Address by CEO 3
Solutions Provider for Sustainable Urbanisation Significant progress towards Vision 2020 Eco-system of companies united by a common purpose Collaborating as OneKeppel to harness synergies Committed to sustainability 4
Financial Performance Key hi highli ghlights ghts Net profit • ROE was 6.3% S$707m 948 • Free cash outflow of S$653m 169 in FY 2019 vs inflow of S$515m FY 2019 net profit down 25% yoy; FY 2018 had benefitted from S$584m gains from in FY 2018 707 en-bloc sales and property divestments 11 S$m • Net gearing was 0.85x as at 169 S$192m 942 end-Dec 2019 vs 0.88x as at end-Sep 2019 517 4Q 2019 net profit up 42% yoy with improved 10 • Proposed final DPS i of 12 cts; total performance in Offshore & Marine, Property 0 and Investments (109) DPS of 20 cts for FY 2019 (54) FY 2018 FY 2019 Offshore & Marine Property Infrastructure Investments i Dividend per share 5
Multiple Income Streams Net profit by income type Recurring income breakdown S$260m S$232m 948 4% 18% 707 197 23% 40% 283 232 34% Focused on improving earnings S$m 260 13% 23% quality and growing recurring income 608 as a stable contributor to the Group 37% 340 32% 0 0 -2% -11% (89) -11% (176) FY 2018 FY 2019 FY 2018 FY 2019 REITs & trust Asset management Project-based Recurring Infrastructure Rental & charter RIDs i Investment & others Connectivity Hospitality i Revaluations, major impairments & divestments 6
Offshore & Marine Keppel O&M secured ~S$720m worth of offshore wind contracts from Tennet and Ørsted in 2019
Offshore & Marine Key highlights Net profit • Keppel O&M returned to profitability with higher revenue and operating S$10m 10 profit for FY 2019 9 S$m • On track in diversification and FY 2019 net profit compared to FY 2018 net 69 loss of S$109m growth path 2 0 • Pursuing opportunities in oil & S$76m gas production and offshore (68) (108) renewables sectors FY 2019 operating profit before RIDs more than • Focused on execution - Delivered 13 (3) doubled from S$37m for FY 2018 (109) newbuild and conversion projects in 2019 and 5th Borr Drilling jackup in FY 2018 FY 2019 Jan 2020 New Builds Repairs & Conversions Associates i i Includes contributions from Floatel, Blue Tern, Dyna-Mac, etc, and impairment on associates 8
Offshore & Marine Net orderbook i 4.4 4.3 • New contract wins worth over • Expanding solutions for non-oil 0.7 S$2.0b in 2019, up 18% from segments S$1.7b in 2018 3.0 • Gas and offshore renewables 2.4 S$b • Net orderbook stood at S$4.4b made up over 60% of new 0.1 as at end-2019 orders in 2019 0.1 0.2 0.2 • Direct headcount increased by • Won over 100 scrubber and 1.1 1.0 BWTS ii retrofit projects worth 2,800 in 2019; plan to add another 0 1,500 in 2020 S$160m in 2019 End-2018 End-2019 Oil rigs FPSOs Specialised vessels Gas solutions Renewables ii Ballast Water Treatment System i Excludes semis for Sete 9
Property The Infiniti, Phase 1C of Riviera Point, was 93% sold as at end-2019
Property Key highlights • Keppel Land’s FY 2019 net profit Net profit was S$527m, compared to S$944m S$517m for FY 2018 due to lower gains from en-bloc sales and divestments 942 67 FY 2019 net profit down 45% yoy due to fewer • Excluding en-bloc sales and en-bloc sales and divestments RIDs, Keppel Land’s net profit 278 FY 2018 had benefitted from S$584m gains 517 was S$260m, up 10% from from en-bloc sales and divestments, mainly S$m 55 S$236m a year ago in China and Vietnam 252 615 237 0 (18) (27) FY 2018 FY 2019 Property trading Property investment Hotels/Resorts REIT 11
Seizing Opportunities in Growth Markets Keppel Land’s FY 2019 Net Profit (Vietnam) • Completed 9 acquisitions worth Net Profit by Geography S$0.5b in new cities and markets 165 across China, Vietnam and India in 2019 Vietnam 134 31% China • Keppel Land and Keppel Urban 105 36% Solutions broke ground for Saigon S$m Sports City in Vietnam S$527m 29 10 0 Singapore & 2015 2016 2017 2018 2019 others 33% 12
Property Home sales • Sold 5,150 units in 2019, up 16% yoy, with total sales value of ~S$3.2b 5,150 250 • Sale of 8,720 overseas units 4,440 300 worth ~S$3.9b recognisable 250 780 from 2020-2022 950 350 160 • Residential landbank of Units ~45,200 units 910 • ~17,400 units launch-ready 3,400 from 2020-2022 2,240 • Commercial portfolio of 1.6 million sm GFA with ~50% 0 FY 2018 FY 2019 under development Keppel Land’s first residential project in Nanjing was 81% sold China Vietnam Singapore Indonesia India as at end-2019 13
Infrastructure Singapore’s 4th desalination plant, Keppel Marina East Desalination Plant to start operations in 1H 2020
Infrastructure Key highlights Net Profit • Keppel Infrastructure delivered strong earnings growth S$169m • Improved performance from 169 Energy Infrastructure and 169 FY 2019 net profit remained stable yoy Environmental Infrastructure 67 76 • Expanding into new markets S$m through strategic investments in MET Group and Zerowaste Asia 133 117 • Data centre business as a key 0 growth engine; Keppel DC (24) (31) Singapore 4 contributed S$50m revaluation and divestment gains FY 2018 FY 2019 for FY 2019 Keppel Infrastructure Data Centres Logistics & Others 15
Investments Keppel DC REIT acquired Keppel DC Singapore 4 from Keppel T&T and Alpha DC Fund in 2019
Investments Key highlights • Keppel Capital Net Profit S$11m • Completed ~S$8.4b in acquisitions 11 and divestments in 2019 38 S$m • Grew AUM by 14% yoy to 48 FY 2019 net profit mainly due to higher 73 S$33b as at end-2019 contribution from M1 and re-measurement gain 22 of previously held interest in M1 62 74 • To launch Keppel Asia 0 Infrastructure Fund (80) (88) • Completed privatisation of M1, (53) (49) which contributed total of S$153m to the Group’s earnings for FY 2019 iii (37) (53) • M1 and StarHub to cooperate and (54) i Share of associated companies’ results submit joint bid for a 5G licence ii Prior to March 2019, M1 relates to the share of associated FY 2018 FY 2019 companies’ results • SSTEC sold two land plots for ii i Keppel Capital M1 KrisEnergy iii Included contributions from M1, re-measurement gain of RMB1.5b i SSTEC Others Impairment of an previously held interest in M1, amortisation of intangibles, associated company funding costs and professional fees 17
Group Financial Highlights by CFO 18
4Q 2019 Financial Performance Key highlights S$m 4Q 2019 4Q 2018 % Change Revenue 2,198 1,677 31 Net Profi fit 42% from net t profit fit of ↑ S$135m to S$192m EBITDA 312 55 467 EPS 40% from 7.5cts to ↑ 10.5cts cts Operating Profit 212 6 >500 Profit Before Tax 238 165 44 Net Profit 192 135 42 EPS (cents) 10.5 7.5 40 19
4Q 2019 Revenue by Segment S$m 4Q 2019 % 4Q 2018 % % Change Offshore & Marine 775 35 520 31 49 Property 323 15 373 22 (13) Infrastructure 760 35 744 44 2 Investments 340 15 40 3 >500 Total 2,198 100 1,677 100 31 20
4Q 2019 Pre-tax Profit by Segment S$m 4Q 2019 % 4Q 2018 % % Change Offshore & Marine (37) (16) (97) (59) (62) Property 242 102 216 131 12 Infrastructure 25 10 50 30 (50) Investments 16 7 (4) (2) n.m. Less: Charges related to the (8) (3) - - n.m. acquisition of M1* Total 238 100 165 100 44 * Charges included amortisation of intangibles, funding costs and professional fees 21
4Q 2019 Net Profit by Segment S$m 4Q 2019 % 4Q 2018 % % Change Offshore & Marine (8) (4) (71) (53) (89) Property 177 92 174 129 2 Infrastructure 24 12 48 36 (50) Investments 7 4 (16) (12) n.m. Less: Charges related to the (8) (4) - - n.m. acquisition of M1* Total 192 100 135 100 42 * Charges included amortisation of intangibles, funding costs and professional fees 22
FY 2019 Financial Performance Key hi highli ghlights ghts S$m FY 2019 FY 2018 % Change Net Profit 25% to S$707m ↑ Revenue 7,580 5,965 27 ROE from 8.4% to 6.3% ↑ EBITDA 1,252 1,237 1 Operating Profit 877 1,055 (17) Free Cash from inflow of S$515m ↑ Flow to outflow of S$653m Profit Before Tax 954 1,245 (23) ↑ Net Profit 707 948 (25) Net Gearing from 0.48x to 0.85x EPS (cents) 38.9 52.3 (26) 23
FY 2019 Revenue by Segment S$m FY 2019 % FY 2018 % % Change Offshore & Marine 2,220 29 1,875 32 18 Property 1,336 18 1,340 22 - Infrastructure 2,927 39 2,629 44 11 Investments 1,097 14 121 2 >500 Total 7,580 100 5,965 100 27 24
Recommend
More recommend
