Presentation to Investors Kuala Lumpur 31 October 2017 1 - PowerPoint PPT Presentation

Presentation to Investors Kuala Lumpur 31 October 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

Harnessing Strengths, Multiplying Synergies Core Strengths: Building Strong Verticals + Collaboration: SYNERGY Offshore & Investments Property Infrastructure Marine Engineering Technology & Project & Innovation Management Capital Operating & Management Maintenance Integrated Master Data Centres Gas Value Chain Developer    Small-scale LNG Alpha DC Fund Keppel Urban solutions for Solutions Indonesia 4 4

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 5 5

Fueling Growth through Asset Management Aim to grow AUM to S$50b over the next five years, boost the Group’s capital recycling platform and expand 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 private through asset turns funds for real assets  seize opportunities Total AUM: through private funds S$28 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 * as at October 2017 6 6

Anchored on a Multi-Business Strategy  Resilient operations backed by diverse 9M 2017 net profit businesses serving sustainable S$712m, up 11% yoy urbanisation needs  9M 2017 profit underpinned by 712 641  39 Property: Higher contributions from 216 80 property trading 97  Infrastructure: Stronger performance S$m driven by energy and infrastructure 355 services 398  Investments: Stronger contribution from 167 Tianjin Eco-City and Keppel Capital 1 0 9M 2017 9M 2016 9M 2017 Offshore & Marine Property Infrastructure Investments 7 7

Multiple Earnings Streams  Recurring income was S$260m or 37% of net profit for 9M 2017 Recurring income breakdown (%) Net profit by income type 712 641 S$260m 92 S$234m 1% 91 6% 25% 260 25% 234 S$m 26% 23% 24% 18% 360 316 28% 24% 0 0 9M 2017 9M 2016 9M 2017 9M 2017 9M 2016 9M 2017 Revaluations, major impairments & divestments REITs & trust Asset management Recurring Infrastructure Rental & charter Project-based Others 8 8

Expanding into New Markets Integrated LNG Solutions Jones Act Vessels   Keppel provides end-to-end solutions for the Keppel AmFELS in Brownsville, Texas is Upstream, Midstream and Downstream gas well-poised to capture opportunities in the markets renewal of the aged Jones Act vessel fleet  Supplying LNG bunker in Singapore in partnership  Secured contracts worth more than US$400m to with Shell build two dual fuel LNG containerships for Pasha Hawaii  Delivered the world’s first converted FLNG vessel, Hilli Episeyo, to Golar LNG  Signed Heads of Agreement with Pavilion Energy & PLN to explore small-scale LNG solutions for Indonesia 9 9

Strong Contributions from Property Residential Residential Commercial Launch-ready homes (units)  Total landbank of ~62,000 units GFA (sm)  3,790 units sold in 9M 2017, with total sales value of ~S$2b  China: 2,380 units 970,800  Vietnam: 1,010 units 156,400  Singapore: 300 units 16,674 50,000 92,500 1,620  Profit from ~6,330 overseas homes 2,806 sold to be recognised upon 498,700 984 289,400 completion from 4Q 2017 to 2019, 11,900 53,100 24,500 4,832 with total sales value of ~S$2b 61,300 120,800 Commercial 382,500 116,200 6,432  Total portfolio of ~1.5m sm of GFA 110,900 4Q 2017 - 2019 Under Completed  Completed assets can generate Development annual income of ~S$75m when China Vietnam Singapore Indonesia Myanmar Philippines UK Others stabilised Figures as at end-September 2017 10 10

Expanding Capital Base Alpha Data Centre Fund closed at a total of about US$1 billion. Power & cooling services ii Keppel Keppel T&T Keppel Capital Keppel Land Infrastructure Data Centre Assets Development Fund mgt & operational services services Alpha Data Keppel DC Centre Fund Asset REIT Asset acquired/ stabilised developed Keppel DC Singapore 4 & divested i Seed capital Capital Keppel Co-investors Group Keppel DC Frankfurt 1 i Matured assets can be monetised through the Keppel-managed real estate and business trusts or other third parties. ii Keppel Infrastructure can provide infrastructure services for the data centres. 11 11

Tianjin Eco-City Continues to Progress  Business model: Masterplanning, Today property development and land sales  Total land area – 30 sq km  More than 45% of Eco-City land developed/sold as at Sep 2017  2008 Population of over 70,000 and over 4,500 registered companies to-date  Record land sales  3 land parcels sold for close to RMB5b or ~RMB14,000 psm of GFA in 9M 2017 12 12

Keppel Urban Solutions  Integrated master developer of large-scale mixed-use developments  Harnesses Group’s diverse strengths and strong track record Jakarta Garden City China-Singapore Suzhou Industrial Park Well-appointed township in Indonesia Large-scale industrial township in China Sino-Singapore Tianjin Palm City Eco-City Integrated waterfront Eco township and model for development in Vietnam sustainable development in China Sino-Singapore Jinan Keppel Bay Smart City Premier waterfront development with luxury homes, a marina and Smart eco-friendly development in China offices in Singapore 13 13

Building for the Future Keppel Urban Solutions (KUS) will be an integrator of urban solutions to create sustainable, highly liveable and digitally-connected communities  Solutions provider for Human-centric design-thinking embedded across all solutions  Masterplanning  Horizontal infrastructure  Connectivity and urban logistics  Innovative programming  Enhances value of land and properties mzz  Generates multiple income streams  Creates opportunities to bring in co-investors  Collaboration between KUS and Powered by intelligent cloud systems that enable sensing technology, IoT and analytics Keppel Land in the 64-ha Saigon Sports City in HCMC, Vietnam 14 14

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. 15 15

ADDITIONAL SLIDES: FINANCIAL HIGHLIGHTS 16 16

Key Figures S$m FY16 FY15 % Chg 9M17 9M16 % Chg Revenue 6,767 10,296 (34) 4,419 4,827 (8) Operating Profit 795 1,514 (47) 650 697 (7) Net Profit 1,525 (49) 641 11 784 712 EPS 43.2cts 84.0cts (49) 39.2 35.3 11 EVA (140) 648 n.m. 61 39 56 Free Cash 576 (694) n.m. 1,235 552 124 Inflow/(Outflow) Reduction Increase of Annualised ROE 6.9% 14.2% 7.7% 7.6% of 730bps 10bps 0.56x Increase Reduction Net Gearing 0.56x 0.53x 0.50x (end-Dec of 0.03x of 0.06x 2016) 17 17

Revenue by Segments S$m FY16 FY15 % 9M17 % 9M16 % % Offshore & Marine 6,241 60 2,054 43 2,854 42 1,312 30 Property 2,035 30 1,823 18 1,350 31 1,451 30 Infrastructure 1,744 26 2,037 20 1,614 36 1,228 25 Investments 134 195 2 143 94 2 2 3 10,296 100 4,827 100 Total 6,767 100 4,419 100 18 18

Net Profit by Segments S$m FY16 % FY15 % 9M17 % 9M16 % Offshore & Marine 29 4 482 32 1 - 167 26 Property 620 661 43 398 355 55 79 56 Infrastructure 99 197 13 97 80 13 13 14 Investments 36 4 185 12 216 30 39 6 Total 784 100 1,525 100 712 100 641 100 19 19