Ci Citi-REIT REITAS AS-SGX SGX C-Suite ite Sin ingapor ore e REITS S and Sponso sors s Forum 25 August 2020
Outl tline ne Overview 3 1 2Q & 1H 2020 Business and Operational Updates 9 2 Additional Information 19 3 2
Overview Ixom
Overvie view of KIT • The largest diversified Business Trust listed in Singapore with a portfolio of strat ategi gic busines esses es and assets that prov ovide essential prod oducts and services es • Assets under Management of $5.0b as at 30 June 2020 • Long-term erm sustai ainabl able cash flows ws supported by AAA Singapore Government-linked off-takers, creditworthy counterparties and a large well-diversified customer base • Stabl able distri ributi ution ons of 3.72 cents every year since FY 2016 Differe rence ce betwee een n Busine iness ss Trust usts s and d REITs Busines ess Trusts REITs • • Asse set Class ss No restriction Real estate • • No impact on distribution payout No impact on distribution payout Depreci reciation/Revaluation • • None 50% Gearin ring Limi mit • Subject to income tax • • Exemption for income from Qualifying Tax transparent Taxation Project Debt Securities (QPDS) TAX 4
Overvie view of KIT Portfol tfolio io of strategic ategic busi usine nesses sses and d assets ts acro ross ss a broa oad range nge of highly hly defens ensive e indu dustri stries es that deliver vers s long-te term rm sustai tainabl nable cash sh flows ws to Unitho tholders lders Strategic businesses and assets Distributio ution n & Netwo work • with potential for long-term City Gas All business and • growth supported by favourable Ixom assets are classified ed • Basslink ink demand dynamics as essential al services es by governments in Singapore, Australia Energ rgy and New Zealand. • Keppel Merlimau au Cogen Stable and resilient infrastructure assets anchored No impact to by concession contracts that are Waste e & Water er operations during backed by government and • Senoko Waste-to-Energy Plant the COVID-19 government-linked corporations • Tuas Waste-to-Energy Plant pandemic. • Ulu Pandan NEWater Plant • SingSpring Desalination Plant 5
Geogra graphical phical Presence sence Distribution & Network Energy Waste & Water 6
Well-Di Dive versi rsifi fied ed Custom tomer er Base and nd Reputab table Off-taker akers Custom omer ers s & Off-ta takers rs Highligh lights ts More than 860,000 residential, City y Gas ✓ Sole producer and retailer of town gas in Singapore commercial and industrial customers ✓ Sole manufacturer and provider of liquefied chlorine in Australia, as well as a leading provider of manufactured >8,000 customers, including blue chip caustic soda and a wide range of essential chemicals Ixom ✓ Market leading position supported by an extensive companies and municipalities network strategically located across Australia and New Zealand ✓ Only electricity interconnector between Tasmania Basslink Hydro Tasmania and mainland Australia ✓ Off-taker is owned by the Australian state of Tasmania ✓ A competitive gas-fired power plant in Singapore ✓ Off-take supported by availability and capacity KMC Keppel Electric payments from Keppel Electric ✓ Keppel Electric is owned by Keppel Corporation ✓ Responsible for meeting water demand and waste Waste ste & National Environment Agency (NEA) and treatment requirements in Singapore ✓ NEA and PUB are statutory bodies under the Public Utilities Board (PUB) of Singapore Water er Government of Singapore 7
Portf tfolio olio Breakdow own By Geograph ography (%) By Busin sines esse ses s and d Asset ets s (%) As at 30 June e 2020 As at 30 June e 2020 19.8 12.0 9.3 $5.0 43.3 $5.0 56.7 17.4 billion billion 15.6 25.9 City Gas Basslink Singapore Australia, New Zealand and other countries Ixom KMC Waste & Water Trust assets and non-controlling interest 8
2Q & 1H 2020 Key Business and Operational Updates City Gas
Key Highlig light hts All busines esses es and assets are classified ed as essential al services es No operational disruption throughout lockdowns; business continuity measures were implemented to ensure health & safety of staff Resilient Distri ributab utable e Cash Flows $62.2m .2m 2Q 2020 DCF of $62.2m, bringing 1H 2020 DCF to $113.3m, a 20.3% YoY increase over 1H 2019 Stabl able DPU 1.86 6 cents ts Defensive cash flows from a diversified portfolio of businesses and assets saw 2Q 2020 DPU of 0.93 cents, bringing 1H 2020 DPU to 1.86 cents Weight ghted ed Averag erage e Term to Maturi urity y 3.2 years KMC secured a $700 sustainability-linked loan that improved WATM to 3.2 years Low Gearing 33.6% 6% Comfortable debt headroom to pursue growth opportunities Information as at 30 June 2020. 10
2Q 2 2020 0 Busine ness ss Updates tes City Gas • Customer base grew 1.2% YoY to 862,000 as at end-June 2020 • Achieved 100% availability • Town gas demand from Commercial & Industrial customers was lower in 2Q 2020 during the circuit breaker, partially offset by higher usage from residential customers • Higher DCF for 2Q 2020 was a result of a timing difference inherent in the fuel price pass through gas tariff mechanism • City Gas has no exposure to fuel price risk over time Ixom Distri ribution bution • Continued to deliver healthy and sustained performance in 2Q 2020, & Networ ork supported by its diversified business ▪ City Gas • Life science segment delivered a strong performance from increased ▪ Ixom demand for cleaning and hygiene products, offsetting weaker demand ▪ Basslink from the pulp & paper and metals & mining segments • Diary segment saw pick-up in volumes due to improving drought conditions in New Zealand • Continue to ensure supplies of essential chemicals are readily available for key industries and essential services that support the economies and communities in Australia and New Zealand Bass sslink nk • The Commercial Risk Sharing Mechanism was neutral in 2Q 2020 (+6.3% for 1H 2020) 11
2Q 2 2020 0 Busine ness ss Updates tes (cont’d) • Contractual availability of 97.9%, due to unplanned maintenance that Energy rgy was promptly rectified • Secured a $700 million sustainability-linked loan, one of the largest such ▪ Keppel loans in Singapore and the first in the energy sector to-date Merlimau • Cogen (KMC) KMC has no tariff exposure to the Singapore wholesale electricity market and has no exposure to fluctuations in fuel oil prices. KMC receives a fee for delivering the availability of the plant to Keppel Electric Waste te & Water er ▪ Senoko WTE Plant ▪ Tuas WTE • Fulfilled all contractual obligations and operations remained stable Plant ▪ Ulu Pandan NEWater Plant ▪ SingSpring Desalination Plant 12
Resilie ient t Distributa tributable ble Cash Flows 2Q 2020 2Q 2019 +/(-) 1H 2020 1H 2019 +/(-) S$’000 S$’000 % S$’000 S$’000 % Distr stribu buti tion n & 40,230 ,230 21,889 83.8 68,43 ,437 44,950 52.3 Netwo work City Gas 17,1 ,154 10,421 64.6 29,0 ,011 26,262 10.5 Ixom 23,0 ,076 76 10,156 >100.0 39,426 ,426 16,034 >100.0 DC One 1 - 1,312 n.m. - 2,654 n.m. Energy gy 10,405 ,405 11,234 (7.4) 21,6 ,607 22,950 (5.9) Waste ste & Water er 18,0 ,081 18,133 (0.3) 36,21 ,219 35,993 0.6 ers 2 Other (6,54 ,541) (5,487) (19.2) (12, 2,945 45) (9,694) (33.5) Distr stribu buta tabl ble e 62,1 ,175 75 45,76 769 35.8 113,3 ,318 94,1 ,199 20.3 Cash sh Flows ws 1. KIT’s divested its 51% stake in DC One on 31 October 2019 2. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 13
Regular and Sta table Distributions tributions Stable ble Distribu ibutio tion n (cent nts) s) 3.72 3.72 3.72 3.72 0.93 0.93 0.93 0.93 1.86 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 1Q 2Q 3Q 4Q Compar parativ ive e Yields lds 1 6.8% 2 4.6% 4.6% 0.9% 0.5% KIT STI Index FTSE ST REIT 10 Yr SG Govt 5 Yr SG Govt bond Index bond 1. Sources: Bloomberg and Monetary Authority of Singapore. Comparative yield based on preceding 12-month data as at 21 August 2020 14 2. Based on the market price per Unit of $0.545 as at 21 August 2020
Balance Sheet Sustai ainabl able e gearing support orted ed by: As at 30 June 2020 (S$’m) Total al Long term concession contracts expiring between ◼ 2024 and 2034 Cash 499 Creditworthy off-takers backed by government and Borrowings 2,169 ◼ government-linked corporations 1,670 Net debt City Gas’ and Ixom’s large and well -diversified ◼ 4,965 Total assets customer base Total liabilities 3,355 Recurring and resilient revenue streams ◼ Annualised EBITDA 1 401 Basslink borrowing is non-recourse ◼ Net gearing 33.6% 4.2x Net debt / EBITDA 1. Annualised based on 1H 2020 EBITDA performance 15
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