SGX-CITIC Virtual Corporate Access Day 10 June 2020
Outl tline ne Overview 3 1 1Q 2020 Business and Operational Updates 8 2 Additional Information 17 3 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 • Stabl able distri ributi ution ons of 3.72 cents per year since FY 2016 Strategic businesses and assets Distributio ution n & Netwo work with potential for long-term • City Gas • growth supported by favourable Ixom All business and • Basslink ink demand dynamics assets are classified ed as essential al services es by governments in Energ rgy Singapore, Australia • Keppel Merlimau au Cogen (KMC) Stable and resilient and New Zealand. No infrastructure assets anchored impact to operations by concession contracts that are Waste e & Water er during the current backed by government and ▪ Senoko WTE Plant COVID-19 pandemic government-linked corporations ▪ Tuas WTE Plant ▪ Ulu Pandan NEWater Plant ▪ SingSpring Desalination Plant 4
Portfol tfolio io of strate ategic gic busi usines nesses ses and d assets ts acro ross ss a broa oad rang nge e of highly hly defensive nsive indu dustri stries Distribution & Network Energy Waste & Water 5
Large ge and nd Diversi rsifi fied ed Custom tomer er Base and d Reputab table e Off-take akers rs Custom omer ers s & Off-ta takers rs Highlights lights More than 860,000 residential, City Gas ✓ Sole producer and retailer of town gas in Singapore commercial and industrial customers ✓ Sole manufacturer and provider of liquefied chlorine in Australia, as well as a leading provider of manufactured >8,000 customers, including blue chip caustic soda and a wide range of essential chemicals Ixom ✓ Market leading position supported by an extensive companies and municipalities network strategically located across Australia and New Zealand ✓ Only electricity interconnector between Tasmania and Basslink Hydro-Electric Corporation mainland Australia ✓ Off-taker is owned by the Australian state of Tasmania ✓ A competitive gas-fired power plant in Singapore ✓ Off-take supported by availability and capacity KMC Keppel Electric payments from Keppel Electric ✓ Keppel Electric is owned by Keppel Corporation ✓ Responsible for meeting water demand and waste Waste ste & National Environment Agency (NEA) and treatment requirements in Singapore ✓ NEA and PUB are statutory bodies under the Public Utilities Board (PUB) of Singapore Water er Government of Singapore 6
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 7
1Q 2020 Key Business and Operational Updates City Gas
1Q 20 2020 Key Results ts Highligh ights ts Stable ble DPU 0.93 3 cents ts Supported by resilient cash flows from a diversified portfolio of businesses and assets Resili ilien ent Distri ributa butable ble Cash Flow ows $51.1m 1m 5.6% YoY increase over 1Q 2019 Annu nualis lised ed Yiel eld (1) 8.8% Based on the market closing price per Unit of $0.425 as at 31 March 2020 Low Geari ring 33.7% .7% Comfortable debt headroom to pursue growth opportunities Information as at 31 March 2020, unless otherwise stated. 9 (1) Based on the market closing price per Unit of $0.535 on 29 May 2020, annualised yield would be 7.0%.
1Q 20 2020 Busine ness ss Update tes s City Gas • Customer base grew 1.6% YoY to 863,000 in 1Q 2020 • Achieved 100% availability • Continue to ensure town gas supply is maintained to support essential requirements in Singapore in the current pandemic Ixom • Continued to deliver resilient performance despite the challenging Distri ributi ution on & operating environment caused by the onset of the COVID-19 pandemic Netwo work rk in March 2020 ▪ City Gas • Stepped up efforts to ensure vital chemicals are available to support ▪ Ixom the populations and economies of Australia and New Zealand in this ▪ Basslink critical period • Well positioned to capture long-term growth opportunities through strengthening its market leading position, operational and cost optimisation and productivity improvements Bassl sslink nk • The Commercial Risk Sharing Mechanism was positive at 12.5% due to higher volatility in the electricity market in Victoria in 1Q 2020 10
1Q 20 2020 Busine ness ss Update tes Energ rgy ▪ Keppel • Achieved 100% of contracted availability Merlimau • Advanced discussions with lenders for the refinancing of the KMC loan Cogen (KMC) Waste e & Water er ▪ Senoko WTE Plant ▪ Tuas WTE Plant • Fulfilled all contractual obligations and operations remained stable ▪ Ulu Pandan NEWater Plant ▪ SingSpring Desalination Plant 11
1Q 20 2020 Portfo tfolio lio Perform ormanc ance 1Q 2020 1Q 2019 +/(-) S$’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 12
Regular and Sta table Distributions tributions Distri ribut bution ion History ory (cent nts) s) 3.72 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 0.93 0.93 0.93 0.93 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 1Q 2Q 3Q 4Q Compar parativ ive e Yields lds (1) 1) 7.0% 5.0% 4.7% 0.8% 0.4% (2) 5 Yr SG Govt bond 10 Yr SG Govt bond STI FTSE ST REIT Index KIT (1) Sources: Bloomberg and Monetary Authority of Singapore. Comparative yield based on preceding 12-month data as at 29 May 2020 (2) Based on the market closing price per Unit of $0.535 on 29 May 2020. 13
Balance Sheet As at 31 March 2020 (S$’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
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