Investor Presentation April 2020
Outl tline ne Overview 3 1 1Q 2020 Business and Operational Updates 7 2 Finance and Capital Management 12 3 Additional Information 16 4 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 $4.9b as at 31 March 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 Distributio ution n & Netwo work • Strategic businesses and assets with potential for long-term City Gas • Ixom growth supported by favourable demand dynamics • Basslink ink Energ rgy • Keppel Merlimau au Cogen (KMC) Stable and resilient infrastructure assets anchored by concession contracts that are backed by government and Waste e & Water er government-linked corporations ▪ Senoko WTE Plant ▪ Tuas WTE Plant ▪ Ulu Pandan NEWater Plant ▪ SingSpring Desalination Plant 4
Overview of KIT (cont’d) 1 8 SingSpring City Gas Desalination Plant SINGAPORE AUSTRALIA & NEW ZEALAND ▪ Sole supplier of town gas in ▪ 1 of 3 Desalination plants in 3 1 Singapore 5 Singapore ▪ Customer base of more than 860,000 ▪ Responsible for meeting the water residential, commercial and industrial demands of Singapore’s customers residential, industrial and 3 commercial sectors 2 7 Keppel Seghers Basslink 7 Ulu Pandan NEWater Plant 3 8 ▪ Only electricity interconnector 3 ▪ 1 of 5 NEWater plants in Singapore 6 between Tasmania and mainland 3 4 3 ▪ Responsible for meeting the water 3 Australia which serves to connect 3 3 demands of Singapore’s electricity grids of the States of 3 3 residential, industrial and Victoria and Tasmania in Australia 3 33 commercial sectors 3 2 3 2 3 3 3 6 Ixom Keppel Seghers Tuas 3 WTE Plant ▪ A leading industrial business in ▪ 1 of 4 waste incineration plants in 4 5 Australia and New Zealand, supplying and distributing water treatment Singapore Keppel Merlimau Senoko WTE Plant chemicals as well as industrial and ▪ Providing essential waste Cogen specialty chemicals which are treatment for land scarce essential to fundamental industries ▪ A competitive gas-fired power plant in ▪ One of the largest waste incineration plants Singapore ▪ Sole manufacturer and provider of in Singapore Singapore, that sells electricity under a liquefied chlorine in Australia, as well Capacity Tolling Agreement ▪ Providing essential waste treatment for land as a leading provider of ▪ Strong operating track record of efficiency scarce Singapore manufactured caustic soda and reliability Legend: Distribution & Network Energy Waste & Water 5
Portf tfolio olio Breakdow own By Geograph ography (%) By Busin sines esse ses s and d Asset ets s (%) As at 31 March ch 2020 As at 31 March ch 2020 12.1 20.5 16.8 $4.9 $4.9 9.7 41.8 billion billion 58.2 15.9 25.0 City Gas Basslink Singapore Australia, New Zealand and other countries Ixom KMC Waste & Water Trust assets and non-controlling interest 6
1Q 2020 Key Business and Operational Updates Keppel Merlimau Cogen
1Q 20 2020 Key Results ts Highligh ights ts Stabl able Resilient Annua ualised ed Yield Low Gearing Distri ribution per r Unit Distri ributab utable Cash Flows 33.7% .7% 8.8% 0.93 3 cents ts $51.1m 1m Supported by resilient 5.6% YoY increase Based on the market price Comfortable debt cash flows from a over 1Q 2019 per Unit of $0.425 headroom to pursue diversified portfolio of as at 31 March 2020 growth opportunities businesses and assets 8
1Q 20 2020 Busine ness ss Update tes s City Gas • Customer base grew 1.6% YoY to 863,000 in 1Q 2020 • Achieved 100% availability • Continue to ensure town gas supply is maintained to support essential requirements in Singapore in the current pandemic Ixom • Continued to deliver resilient performance despite the challenging Distri ributi ution on & operating environment caused by the onset of the COVID-19 pandemic Netwo work rk in March 2020 ▪ City Gas • Stepped up efforts to ensure vital chemicals are available to support ▪ Ixom the populations and economies of Australia and New Zealand in this ▪ Basslink critical period • Well positioned to capture long-term growth opportunities through strengthening its market leading position, operational and cost optimisation and productivity improvements Bassl sslink nk • The Commercial Risk Sharing Mechanism was positive at 12.5% due to higher volatility in the electricity market in Victoria in 1Q 2020 9
1Q 20 2020 Busine ness ss Update tes Energ rgy ▪ Keppel • Achieved 100% of contracted availability Merlimau • Advanced discussions with lenders for the refinancing of the KMC loan Cogen (KMC) Waste e & Water er ▪ Senoko WTE Plant ▪ Tuas WTE Plant • Fulfilled all contractual obligations and operations remained stable ▪ Ulu Pandan NEWater Plant ▪ SingSpring Desalination Plant 10
1Q 20 2020 Portfo tfolio lio Perform ormanc ance 1Q 2020 1Q 2019 +/(-) S$’000 S$’000 % Distri ributi ution on & Netwo work rk 28,20 207 23,061 22.3 City Gas 11,8 ,857 15,841 (25.1) Ixom 16,3 ,350 5,878 >100.0 DC One 1 - 1,342 n.m. Energ rgy 11,20 ,202 11,716 (4.4) Waste ste & Water er 18,1 ,138 17,860 1.6 Other ers 2 (6,404) ,404) (4,207) (52.2) Distr stribu buta tabl ble e Cash sh Flows ws 51,1 ,143 48,430 5.6 1. KIT’s divested its 51% stake in DC One on 31 October 2019 2. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs 11
Fin inance nce and Capit ital l Management nt City Gas
Regular and Sta table Distributions tributions Distri ribut bution ion History ory (cent nts) s) 3.72 3.72 3.72 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 FY 2017 FY 2018 FY 2019 FY 2020 1Q 2Q 3Q 4Q Compar parativ ive e Yields lds 1 8.8% 5.9% 5.4% 1.3% 1.0% 5 Yr SG Govt bond 10 Yr SG Govt STI FTSE ST REIT Index KIT bond 1. Sources: Bloomberg and Monetary Authority of Singapore. Comparative yield based on preceding 12-month data as at 31 March 2020 13
Balance Sheet As at 31 March 2020 (S$’m) Sustai ainabl able e gearing support orted ed by: Total al Excl. l. Basslink Long term concession contracts expiring ◼ between 2024 and 2036 Cash 443 411 Creditworthy off-takers backed by ◼ Borrowings 2,101 1,505 government and government-linked corporations Net debt 1,658 1,094 City Gas’ and Ixom’s large and Total assets 4,925 4,098 ◼ well-diversified customer base 3,267 2,435 Total liabilities Recurring and resilient revenue streams ◼ Annualised 392 317 EBITDA 1 Basslink borrowing is non-recourse ◼ Net gearing 33.7% 26.7% Net debt / 4.2x 3.4x EBITDA 1. Annualised based on 1Q 2020 EBITDA performance 14
Capita tal Manageme ment Overvi rview: Debt bt Repaym aymen ent Debt bt Brea eakdow own by Hedged ~ 89% of total loans Curren rency ◼ Profi ofile All loans are non-recourse except KIT corporate loan ◼ Stable interest rate of 4-5% < 1 yr ◼ 61.9% A$51.9% Singapore average: 2-4% − Australia average: 3-7% − 1-5 yrs Weighted average term to maturity of ~ 1.7 years 38.1% ◼ Excluding the Basslink loan, weighted average term − to maturity would be ~ 2.1 years S$48.1% Initiated Unit buybacks as part of proactive capital ◼ management efforts 1 Amou mount Maturity/ Repurchased and cancelled 4,750,000 Units − Loan Profile Repayment ($’m) Call Date as at 3 April 2020 S$700.0m KMC loan due in June 2020 KMC S$700.0m June 2020 Bullet* ◼ Advanced discussions with lenders for the − KIT S$100.0m February 2022 Bullet* refinancing City Gas S$178.0m February 2024 Bullet* S$598.8m (A$659.3m) 2 Basslink loan ◼ Interest rate substantially hedged − SingSpring S$39.0m December 2024 Amortising Natural currency hedge for A$ cash flows − Basslink A$659.3m November 2020 Amortising* All residual cash flows used for debt service − Not dependent on Basslink’s cash flows − Ixom A$547.4m February 2024 Bullet* for distribution 1. Pursuant to the mandate obtained at KIT’s Annual General Meeting in April 2019 2. Based on exchange rate of A$1.00 = S$0.9257 15 * To be refinanced upon maturity
Addi ditional tional Inform rmation tion Senoko WTE Plant
Driving ving Susta tain inabl able Growth th KIT’s strategic goal is to deliver sustainable returns to its Unitholders, through a combination of recurring distri ribu bution ions s and capit ital l grow owth th ove ver r the long term Anchored By a growin wing g port rtfoli olio of strat ateg egic businesses es and assets acros oss a broad oad range e of highly y defen fensive ve indus dustries es Benchmarks Creditworthy off- High barriers to entry Provider of essential Long-term, mature Jurisdictions with takers and/or a with a dominant or products or services and defensive cash well-developed legal large, diversified and leading market with potential for flows frameworks stable customer base position long-term growth 17
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