Second Quarter and First Half 2017 Financial Results 20 July 2017 - PowerPoint PPT Presentation

Second Quarter and First Half 2017 Financial Results 20 July 2017 1

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

Address by CEO 3

Capturing Opportunities in Sustainable Urbanisation LNG solutions Green buildings Desalination 4

Financial Performance  Net profit was S$421m 1H 2017 net profit  EVA was negative S$25m S$421m, up 1% yoy  Annualised ROE was 6.6% 421 416  Free cash inflow of S$237m in 1H 2017, 21 vs outflow of $262m in 1H 2016 41 163  Net gearing was 0.58x at end-Jun 2017, 198 vs 0.57x at end-Mar 2017 57 S$m  Paid out S$218m as 2016 final dividend in 2Q 2017 200 156 1  Interim cash dividend of 8.0 cents 0 per share for 2017 1H 2017 1H 2016 1H 2017 Offshore & Marine Property Infrastructure Investments 5

Multiple Earnings Streams  Recurring income was S$150m or 36% of net profit for 1H 2017 Recurring income breakdown (%) Net profit by income type 416 421 20 59 S$175m 6% S$150m 175 1% 150 35% 27% S$m 23% 18% 22% 17% 221 212 24% 27% 0 0 1H 2017 1H 2016 1H 2017 1H 2017 1H 2016 1H 2017 Others Rental & charter Revaluations, major impairments & divestments Infra services and operations & maintenance Recurring Asset management Project-based REITs & trust 6

The world’s first converted FLNGV - Hilli Episeyo Offshore & Marine 7

Offshore & Marine  Operating profit of S$36m in 1H 2017 1H 2017 net profit  YTD new contracts of ~S$300m S$1m, down 99% yoy including newbuild LNG carriers and dredgers, and FPSO conversions Novation of Transocean’s five  156 jackups to Borr Drilling completed 31 S$m 125 1 21 0 (20) 1H 2016 1H 2017 1H 2017 i Operations Associates i Includes contributions from Floatel, Seafox and Dyna-Mac, etc. 8

Offshore & Marine  3 major deliveries in 1H 2017 Net orderbook i including 2 FPSOs and a semi S$3.4b as at end-Jun 2017  3 offshore project deferrals in 2Q 2017 3.7  Golar Hilli FLNGV soon to be 0.1 3.4 0.1 0.2 delivered; 18 million manhours worked 0.2 without Lost Time Incidents 2.3  Re-organised Keppel O&M’s S$b 2.1 operations into New Builds and Conversions & Repairs to leverage 0.2 0.2 synergies and capture new 1.0 0.7 opportunities 0 End-Jun 2017 End-2016 End-Jun 2017  Divested Rotterdam shipyard for Newbuild jackups Newbuild semis ~ € 24m FPSOs/FLNGs Specialised vessels Others ii i Excludes semis for Sete ii Includes modification, upgrading, fabrication and rig repairs 9

Gas Industry Partner & Enabler Keppel designs, develops and integrates solutions for seamless delivery of LNG across the gas value chain. 10

SOHO Hongkou, Shanghai Property 11

Property  Deepening presence in regional 1H 2017 net profit markets S$200m, up 1% yoy  Completed acquisition of additional stake in Junction City 200 198 Mixed Development, Yangon 25 38 8  Keppel Land China and Alpha in 35 collaboration with co-investor to S$m acquire SOHO Hongkou, 175 Shanghai for US$525m 127 (8) (2) 0 1H 2016 1H 2017 1H 2017 Property trading Property investment Hotels/Resorts REIT 12

Property  Sold 2,470 units in 1H 2017, with total Home sales sales value of about S$1.2b  Overall sales volume grew ~15% yoy, bolstered by: 2,470  Steady sales in China of 1,810 units 50 2,140 220 10 390  390 units sold in Vietnam, 190 90 up ~4x yoy  220 units sold in Singapore, Units 1,850 1,810 up ~16% yoy  ~5,860 overseas homes sold to be 0 recognised upon completion from 1H 2016 1H 2017 1H 2017 3Q 2017 through 2019 China Vietnam Singapore Others 13

Property Portfolio  Residential landbank of over 62,000 homes in total Combined commercial portfolio i with total GFA of ~1.5 million sm  Commercial Residential Gross floor area (sm) Launch-ready homes (units) 970,800 50,000 17,032 92,500 1,620 156,400 2,793 294 522,500 11,900 289,400 5,668 24,500 61,300 53,100 120,800 116,200 6,657 382,500 134,700 Completed Under Development 2H 2017 - 2019 China Vietnam Singapore Indonesia Myanmar Philippines UK Others i Excludes Keppel REIT’s assets, and includes SOHO Hongkou, Shanghai 14

Singapore’s first dual -mode desalination plant - Keppel Marina East Desalination Plant Infrastructure 15

Infrastructure  Broke ground for Keppel Marina East 1H 2017 net profit Desalination Plant S$57m, up 39% yoy  Providing technology solutions to two WTE plants in China 57  Keppel DC Singapore 4 achieved TOP 12 41 1 and will be injected into Alpha DC 11 4 Fund S$m 47  Collaborating with JTC, IMDA and 26 (3) Huawei on data centre space 0 optimisation 1H 2017 1H 2016 1H 2017 Energy, Environment & Infrastructure services Data centres REIT & Trust Logistics and others 16

Night view of Sino-Singapore Tianjin Eco-City Investments 17

Investments  Active asset management in 1H 2017 1H 2017 net profit  Keppel REIT acquired 50% stake S$163m, up >500% yoy in Melbourne office development 163  AAMTF i III and Keppel Land China to jointly acquire SOHO Hongkou, Shanghai 130 S$m  Alpha DC Fund secured capital commitments of close to US$500m  Aim to double Keppel Capital’s S$25b 21 AUM over next five years 33 29 (8) 0 1H 2017 1H 2016 1H 2017 Asset management Others i AAMTF - Alpha Asia Macro Trends Fund 18

Tianjin Eco-City Continues to Progress  Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd Eco-City Residential Land Transactions i (SSTEC) 361,000  Business model: Masterplanning, property development and land 299,300 13,800 sales 231,900  Registered capital: RMB4b 183,000 6,300  Keppel’s effective stake: 45%  Total Eco-City land area - 30 sq km 1,900 1,700  Residential, industrial and commercial land progressively 2014 2015 2016 2017 acquired by SSTEC at fixed price GFA Sold (sm) Avg. Selling Price (RMB/sm)  More than 45% of Eco-City land developed/sold as at Jun 2017 i Source: http://www.tjlandmarket.com 19

Group Financial Highlights by CFO 20

2Q 2017 Financial Performance Net Profit 21% to S$161m EPS 21% to 8.9cts EVA from positive S$7m to negative S$48m 21

2Q 2017 Financial Highlights S$m 2Q 2017 2Q 2016 % Change Revenue 1,554 1,625 (4) EBITDA 196 292 (33) Operating Profit 139 234 (41) Profit Before Tax 218 285 (24) Net Profit 161 205 (21) EPS (cents) 8.9 11.3 (21) 22

2Q 2017 Revenue by Segments S$m 2Q 2017 % 2Q 2016 % % Change Offshore & Marine 449 29 720 44 (38) Property 542 35 469 29 16 521 33 404 25 29 Infrastructure Investments 42 3 32 2 31 Total 1,554 100 1,625 100 (4) 23

2Q 2017 Pre-tax Profit by Segments S$m 2Q 2017 % 2Q 2016 % % Change Offshore & Marine 8 4 88 31 (91) Property 123 56 124 43 (1) 34 16 37 13 (8) Infrastructure Investments 53 24 36 13 47 Total 218 100 285 100 (24) 24

2Q 2017 Net Profit by Segments S$m 2Q 2017 % 2Q 2016 % % Change Offshore & Marine 1 1 61 30 (98) Property 97 60 92 45 5 25 15 27 13 (7) Infrastructure Investments 38 24 25 12 52 Total 161 100 205 100 (21) 25

1H 2017 Financial Performance Net Profit 1% to S$421m EPS 1% to 23.2cts from 7.4% to 6.6% Annualised ROE EVA from positive S$9m to negative S$25m Free Cash Flow from outflow of S$262m to inflow of S$237m from 0.56x to 0.58x Net Gearing Interim Cash Dividend maintained at 8.0 cts per share 26

1H 2017 Financial Highlights S$m 1H 2017 1H 2016 % Change Revenue 2,802 3,368 (17) EBITDA 439 626 (30) Operating Profit 326 512 (36) Profit Before Tax 564 563 - Net Profit 421 416 1 EPS (cents) 23.2 22.9 1 27

1H 2017 Revenue by Segments S$m 1H 2017 % 1H 2016 % % Change Offshore & Marine 932 33 1,538 46 (39) Property 804 29 972 29 (17) 988 35 794 23 24 Infrastructure Investments 78 3 64 2 22 Total 2,802 100 3,368 100 (17) 28

1H 2017 Pre-tax Profit by Segments S$m 1H 2017 % 1H 2016 % % Change Offshore & Marine 9 2 210 37 (96) Property 250 44 266 47 (6) 71 13 55 10 29 Infrastructure Investments 234 41 32 6 >500 Total 564 100 563 100 - 29

1H 2017 Net Profit by Segments S$m 1H 2017 % 1H 2016 % % Change Offshore & Marine 1 - 156 37 (99) Property 200 47 198 48 1 57 14 41 10 39 Infrastructure Investments 163 39 21 5 >500 Total 421 100 416 100 1 30

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: 421 22.3 19.2 23.2 225 12.4 751 2Q: 2Q: 2Q: 41.9 2Q: 8.9 161 205 11.3 1Q: 357 339 19.8 1Q: 18.7 360 1Q: 1Q: 19.8 260 14.3 211 11.6 31

ROE & Dividend Dividend i n specie Dividend i n specie ~28.6cts/share ~ 9.5cts/share Plus Plus 26.4% 19.5% 18.8% 14.2% 48.0 45.0 40.0 34.0 6.9% 6.6% 20.0 18.0 12.0 12.0 10.0 8.0 8.0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 1H 2017 ROE Interim Dividend Full-Year Dividend 32