First Quarter 2017 Financial Results 20 April 2017 1 Scope of - PowerPoint PPT Presentation

First Quarter 2017 Financial Results 20 April 2017 1

Scope of Briefing  Address by CEO  Group Financial Highlights by CFO 2

Address by CEO 3

Tapping Growth in Sustainable Urbanisation 6,800 Rising demand for: • Energy 5,800 • Infrastructure • Clean 4,800 Urban Population (mil) Environments • Homes, Offices & 3,800 Retail Properties • Connectivity 6.4 bn 2,800 global urban population by 2050, up >60% 1,800 from 2014 800 1950 2014 2050 Source: World Urbanization Prospects 2014, United Nations 4

Financial Performance Key Highlights 1Q 2017 net profit  Net profit was S$260m S$260m, up 23% yoy  EVA was S$23m 260  Annualised ROE was 7.6% 211 14 125  Free cash outflow of S$80m in S$m 1Q 2017, compared to $306m in 106 1Q 2016 32  Net gearing was 0.57x as at 103 end-Mar 2017, compared to 0.56x 95 (4) as at end-Dec 2016 0 1Q 2017 1Q 2016 1Q 2017 Offshore & Marine Property Infrastructure Investments 5

Multiple Earnings Streams  Recurring income was S$78m or 30% of net profit for 1Q 2017 29% REITs & Trust S$125m 48% 17% Asset Management 1Q17 S$78m 30% S$260m Infrastructure Services and 19% Operations & Maintenance 31% Rental & Charter Others S$57m 4% 22% Recurring Income Project-based Revaluations, Major Impairments & Divestments 6

Transocean’s 5 jackup rigs, under construction at Keppel FELS, will be novated to Borr Drilling Offshore & Marine 7

Offshore & Marine  Operating profit of S$4m in 1Q 2017, 1Q 2017 net profit mainly due to lower volume of work  Continued rightsizing at Keppel O&M 95  Ceased operations in one of three 18 supporting yards in Singapore slated for closure in 2017 S$m  Announced plans to divest 77 - shipyard in Rotterdam 20  Lowered global direct workforce 0 by about 1,250 or 6% qoq (20) 1Q 2016 1Q 2017 1Q 2017 Operations Associates 8

Offshore & Marine  Continued focus on the execution of Net orderbook i existing orderbook S$3.5b as at end-Mar 2017  Delivery of an FPSO vessel to Yinson 3.7 3.5 0.1 0.1 0.1  Sailaway of the FPSO P-66 for 0.1 final topside integration 2.3 2.2  Golar Hilli FLNG vessel, FPSO S$b BW Catcher and a semi for SOCAR are on track for delivery 0.2 0.2 1.0  0.9 3 jackup deferrals in 1Q 2017 0  Transocean’s five jackup rigs to be End-Mar 2017 End-2016 End-Mar 2017 Newbuild jackups Newbuild semis novated to Borr Drilling FPSOs/FLNGs Specialised vessels Others ii i Excludes semis for Sete ii Includes modification, upgrading, fabrication and rig repairs 9

Saigon Centre retail mall, Ho Chi Minh City Property 10

Property  Property Division net profit of S$103m 1Q 2017 net profit for 1Q 2017 S$103m, down 3% yoy  Deepened presence in regional 106 103 markets 15  33 Increased stake in the Saigon 4 Centre development, Ho Chi 10 Minh City 1 S$m  Opened the 23-storey Grade A 86 62 office tower in Junction City Phase One, Yangon (2) 0  Divested stake in Surabaya 1Q 2017 1Q 2016 1Q 2017 property company Property trading Property investment Hotels/Resorts REIT 11

Property  Sold 980 units in 1Q 2017, with Home sales total sales value of about S$530m  Overall sales volume grew about 4% yoy, bolstered by: 980 940 10 130  60 730 units sold in China 110 50  110 units sold in Vietnam, more than double yoy Units 830  130 units sold in Singapore, 730 more than double yoy 0 1Q 2016 1Q 2017 1Q 2017 China Vietnam Singapore Others 12

Property Portfolio  Residential landbank of over 64,000 homes in total  Commercial portfolio of over one million sm of GFA under development Residential Commercial GFA Under Development i (sm) Launch-Ready Homes (units) 18,160 1,035,400 1,620 50,000 388 92,500 2,833 156,400 5,556 354,000 7,763 382,500 (2Q 2017 - 2019) China Vietnam Philippines China Vietnam Indonesia Singapore Others Indonesia Myanmar i As at 31 Mar 2017 13

Keppel Infrastructure signed a 25-year Water Purchase Agreement in January 2017 Infrastructure 14

Infrastructure  Keppel Infrastructure net profit of 1Q 2017 net profit S$30m for 1Q 2017, up from S$32m, up 129% yoy S$10m yoy 32  Signed 25-year Water Purchase 3 Agreement for desalination plant  Completed capacity upgrade of the Ulu Pandan NEWater Plant S$m 14 29 2 1  Signed agreement with EDB to develop, 1 own and operate a gasification facility, 10 an important step in preparation for FID 0 1Q 2016 1Q 2017 1Q 2017  Launched the PCCW Global-Keppel Energy, Environment & Infrastructure services International Carrier Exchange in Logistics Hong Kong Data centres REIT & Trust 15

Ocean Financial Centre, Singapore Investments 16

Investments  Asset management business 1Q 2017 net profit continued to be active in 1Q 2017 S$125m, compared to a S$4m loss yoy  Alpha’s funds divested four 125 assets in Singapore, Japan and Korea  Stronger contribution from Sino-Singapore Tianjin Eco-City 112 S$m (4) 15 13 0 (19) 1Q 2016 1Q 2017 1Q 2017 Asset management Others 17

Seizing Opportunities in Sustainable Urbanisation Offshore & Marine Property Gas value chain Rising home-ownership • Liquefaction & regasification aspirations in Asia • • Residential pipeline of Transportation & bunkering >64,000 homes Specialised vessels Prime commercial portfolio • >1 million sm of commercial Re-purposing offshore technology GFA under development • Floating infrastructure assets Investments Infrastructure Integrated asset management Energy & environmental infrastructure • Assets management solutions for real assets across • Power and gas Property, Infrastructure, and even O&M sectors • WTE, desalination & wastewater treatment • District cooling and energy efficiency management Master developer of urban developments Connectivity • Sino-Singapore • Data centre development Tianjin Eco-City and management • Jinan Smart City • Urban logistics, e-commerce fulfilment 18

Group Financial Highlights by CFO 19

Financial Performance Net Profit 23% to S$260m EPS 24% to 14.3cts Annualised ROE from 7.1% to 7.6% EVA from S$2m to S$23m from S$306m to S$80m Free Cash Outflow Net Gearing from 0.56x to 0.57x 20

Financial Highlights S$m 1Q 2017 1Q 2016 % Change Revenue 1,248 1,743 (28) EBITDA 243 334 (27) Operating Profit 187 278 (33) Profit Before Tax 346 278 24 Net Profit 260 211 23 EPS (cents) 14.3 11.6 24 21

Revenue by Segments S$m 1Q 2017 % 1Q 2016 % % Change Offshore & Marine 483 39 818 47 (41) Property 262 21 503 29 (48) 467 37 390 22 20 Infrastructure Investments 36 3 32 2 13 Total 1,248 100 1,743 100 (28) 22

Pre-tax Profit by Segments S$m 1Q 2017 % 1Q 2016 % % Change Offshore & Marine 1 - 122 44 (99) Property 127 37 142 51 (11) 37 11 18 6 106 Infrastructure Investments 181 52 (4) (1) NM Total 346 100 278 100 24 23

Net Profit by Segments S$m 1Q 2017 % 1Q 2016 % % Change Offshore & Marine - - 95 45 (100) Property 103 40 106 50 (3) 32 12 14 7 129 Infrastructure Investments 125 48 (4) (2) NM Total 260 100 211 100 23 24

Net Profit & EPS Net profit (S$m) EPS (Cents) 2,237 124.8 1,885 1,846 619 103.8 102.3 34.5 1,525 726 84.0 685 346 39.9 38.0 19.3 405 22.3 521 29.1 414 363 457 22.9 25.3 20.0 784 43.2 4Q: 4Q: 143 7.9 397 3Q: 406 347 21.9 3Q: 22.3 19.2 225 12.4 751 2Q: 41.9 2Q: 205 11.3 1Q: 357 339 19.8 1Q: 18.7 360 1Q: 1Q: 19.8 260 14.3 211 11.6 25

Free Cash Flow 1Q 2017 1Q 2016 S$m S$m Operating profit 187 278 Depreciation & other non-cash items (69) 64 118 342 Working capital changes (61) (635) Interest & tax paid (66) (42) Net cash used in operating activities (9) (335) Investments & capex (117) (63) Divestments & dividend income 46 92 Net cash (used in)/from investing activities (71) 29 Cash outflow (80) (306) Free cash flow excludes expansionary acquisitions and capex, and major divestments. 26

1Q 2017 Results Q&A 27

Additional Information 28

Revenue by Geography 1Q 2017 Total Overseas Singapore S$m Customers Customers % % Offshore & Marine 483 83 17 Property 262 60 40 Infrastructure 467 14 86 Investments 36 1 99 Total 1,248 50% of total revenue came from overseas customers 29

EBITDA by Segments S$m 1Q 2017 % 1Q 2016 % % Change Offshore & Marine 40 17 150 45 (73) Property 80 33 115 34 (30) Infrastructure 37 15 25 8 48 Investments 86 35 44 13 96 Total 243 100 334 100 (27) 30

Capital/Gearing/ROE S$m 31 Mar 2017 31 Dec 2016 Shareholders’ Funds 11,784 11,659 Total Equity 12,421 12,334 7,081 6,966 Net Debt Net Gearing Ratio 0.57x 0.56x ROE 7.6% 6.9% 31

OFFSHORE & MARINE 32

Financial Highlights – Offshore & Marine S$m 1Q 2017 1Q 2016 % Change Revenue 483 818 (41) EBITDA 40 150 (73) Operating Profit 4 111 (96) Profit Before Tax 1 122 (99) Net Profit - 95 (100) 33