Presentation to Investors San Francisco 11-12 May 2017 1 - PowerPoint PPT Presentation

Presentation to Investors San Francisco 11-12 May 2017 1

Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory changes. The forward-looking statements reflect the current views of Management on future trends and developments. 2 2

Providing Solutions for Sustainable Urbanisation Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world’s sustainable urbanisation needs through key businesses in Offshore & Marine, Property, Infrastructure and Investments. 3 3 3

Anchored on a Multi-Business Strategy  Resilient operations 1,525 supported by rightsizing and Net profit by prudent investments in new 784 business 661 620 482 capabilities segment 197 185 ( S$’m ) 99 29 36  Further growing contributions Offshore & Property Infrastructure Investments Group from Property, Infrastructure Marine and Investments divisions 1,525  Focused on expanding stable recurring income to fund 784 Net profit by capital spending and 633 522 515 income type dividends for the long term 377 328 ( S$’m ) (66) ii i Project-based Recurring RIDs Group 2015 2016 i Project-based earnings include income from rig building, specialised shipbuilding, property development and EPC projects. ii Revaluations, Major Impairments & Divestments 4 4

Creditable Performance  Net profit for 1Q 2017 was S$260m, up 23% from S$211m for 1Q 2016, supported by multiple earnings streams  Recurring income constituted 30% of 1Q 2017 net profit 29% REITs & Trust S$125m 48% 17% Asset Management S$78m 1Q17 Net Profit 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 5 5

Harnessing Strengths, Multiplying Synergies Core Strengths: Building Strong Verticals + Collaboration: SYNERGY Offshore & Investments Infrastructure Property Marine Engineering Technology & Project & Innovation Management Capital Operating & Management Maintenance Townships Data Centres Gas Value Chain 6 6

Shaping Our Future Keppel Corporation Keppel Land Keppel T&T expanded Keppel Infrastructure restructured asset completed its into e-commerce named preferred bidder for Singapore’s management businesses Selective Capital fulfilment with 4 th desalination plant under Keppel Capital Reduction exercise Courex stake Jan’ 16 Apr’ 16 Jul’16 Oct’16 Dec’16 Keppel T&T and Alpha Keppel O&M jointly Keppel O&M Keppel Capital secured licence with completed launched new funds Data Centre Fund made first acquisition Shell to supply LNG acquisition of with target size of in Frankfurt bunker LeTourneau US$1.5b 7 7

Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation Operation & Divestment Fee-based • Offshore & Marine • Property OWN STABILISE TRUSTS • Infrastructure & & & • Investments OPERATE MONETISE FUNDS • Fund management • Midstream assets • Unlocking value • Operating & maintenance • Commercial properties • Recycling & services reinvesting capital for • Plants & data centres higher returns • Facilities & property management Earnings streams: Operating income Asset mgt fee Operations fee Operations fee Development profit Capital gains Property mgt fee Property mgt fee Facility mgt fee Facility mgt fee Repair/service fee 8 8

Fueling Growth through Asset Management Boosting the Group’s capital recycling platform and expanding its capital base with co-investors. Harnessing synergies to: Private Funds  increase recurring Property  Among SGX’s fee income largest Pan-Asian  Manages commercial REITs  improve returns 6 property through asset turns funds*  seize opportunities Total AUM: through private funds S$25 billion Infrastructure Data Centres  create pull-through projects for business verticals  Asia’s first data  Largest Singapore  maintain institutional infrastructure trust on SGX centre REIT on SGX quality balance sheet * Excludes the newly-launched Alpha Data Centre Fund and Alpha Asia Macro Trends Fund III, which will add another US$3.5 billion to AUM when fully invested. 9 9

Data Centre Fund The Alpha Data Centre Fund harnesses synergies across the Group’s business verticals to create sustainable value with capital efficiency. Keppel Keppel Keppel Keppel T&T Land Capital Infrastructure Fund management Development & Power & cooling services operational services solutions Data centre Asset Alpha Data project acquired/ stabilised & developed Data Centre Keppel DC divested Centre Fund Asset REIT Target Size: US$500m First closing: US$130m Seed capital Capital Keppel Co-investors Group 10 10

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 GA 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 11 11

K eppel is in the business of sustainable urbanisation. We drive collaboration across business verticals to create and capture value from all parts of the Group. 12 12

ADDITIONAL SLIDES: FINANCIAL HIGHLIGHTS 13 13 13

Key Figures S$m FY16 FY15 % Chg 1Q17 1Q16 % Chg Revenue 6,767 10,296 (34) 1,248 1,743 (28) Operating Profit 795 1,514 (47) 187 278 (33) Net Profit 1,525 (49) 211 23 784 260 EPS 43.2cts 84.0cts (49) 14.3cts 11.6cts 24 EVA (140) 648 n.m. 23 2 1,050 Free Cash Flow 576 (694) n.m. (80) (306) 74 Annualised ROE Reduction Increase 6.9% 14.2% 7.6 7.1 of 730bps of 50bps Net Gearing Increase Increase 0.56x 0.53x 0.57x 0.56x of 0.03x of 0.01x 14 14

Revenue by Segments S$m FY16 FY15 % 1Q17 % 1Q16 % % Offshore & Marine 6,241 61 818 47 2,854 42 483 39 Property 2,035 30 1,926 19 262 21 503 29 Infrastructure 1,744 26 2,058 20 467 37 390 22 Investments 134 71 - 36 32 2 2 3 Total 10,296 100 1,743 100 6,767 100 1,248 100 15 15

Net Profit by Segments S$m FY16 % FY15 % 1Q17 % 1Q16 % Offshore & Marine 29 4 481 32 - - 95 45 Property 620 701 46 103 106 50 79 40 Infrastructure 99 207 14 32 14 7 13 12 Investments 36 4 136 8 125 48 (4) (2) Total 784 100 1,525 100 260 100 211 100 16 16

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 17 17

ROE & Dividend ROE (%) & Dividend (Cents) Distribution in specie ~28.6cts/share Plus Distribution in specie ~ 9.5cts/share 27.2% 26.4% Plus 19.5% 18.8% 48.0 14.2% 45.0 43.0 40.0 34.0 6.9% 18.0 17.0 12.0 12.0 20.0 10.0 8.0 FY11 FY12 FY13 FY14 FY15 FY16 ROE Interim Dividend Full-Year Dividend 18 18