Third Quarter and Nine Months 2017 Financial Results 19 October - PowerPoint PPT Presentation

Third Quarter and Nine Months 2017 Financial Results 19 October 2017 1

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

Address by CEO 3

Solutions Provider for Sustainable Urbanisation Energy & Environment • Gas value chain • Waste to energy Connectivity • Desalination • Floating data centres • E-commerce fulfillment Urban Living • Integrated mixed-use developments • High quality homes 4

Financial Performance  Net profit was S$712m 9M 2017 net profit  EVA was S$61m S$712m, up 11% yoy  Annualised ROE was 7.7%  712 Free cash inflow of S$1.2b in 9M 2017, 641 vs S$552m in 9M 2016 39 216 80  Net gearing was 0.50x at end-Sep 2017 97 vs 0.58x at end-Jun 2017 S$m 355  Paid out S$145m as 2017 interim 398 dividend in 3Q 2017 167 1 0 9M 2017 9M 2016 9M 2017 Offshore & Marine Property Infrastructure Investments 5

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 6

Delivery of the world’s first converted FLNG vessel - Hilli Episeyo Offshore & Marine 7

Offshore & Marine  Operating profit of S$39m in 9M 2017 9M 2017 net profit  YTD new contracts of ~S$1b S$1m, down 99% yoy  2 LNG containerships  2 LNG carriers 167  22 3 FPSO conversions  2 Dredgers S$m 145  Other conversion/refurbishment 1 projects and supporting services 28 0 (27) 9M 2016 9M 2017 9M 2017 i Operations Associates i Includes contributions from Floatel, Seafox and Dyna-Mac, etc. 8

Offshore & Marine  7 major deliveries in 9M 2017 namely Net orderbook i 4 FPSOs, a semi, a subsea S$3.9b as at end-Sep 2017 construction vessel and a crane vessel  1 jackup deferral in 3Q 2017 3.9 3.7 0.2  Gaining traction in new markets 0.1 0.7 0.1  Contracted to build 2 Jones Act 2.3 LNG containerships for Pasha S$b 2.1  Delivery of Hilli Episeyo 0.2 0.2  FueLNG completed first commercial 1.0 0.7 LNG bunkering 0 End-Sep 2017 End-2016 End-Sep 2017  Exploring small-scale LNG Newbuild jackups Newbuild semis solutions for Indonesia with Pavilion FPSOs/FLNGs Specialised vessels Energy and PLN Others ii i Excludes semis for Sete ii Includes modification, upgrading, fabrication and rig repairs 9

Launch of Tilia Residences in Ho Chi Minh City Property 10

Property  Continued capital recycling for best 9M 2017 net profit risk-adjusted returns in 9M 2017 S$398m, up 12% yoy  Divestments of ~S$400m including:  Stakes in a Nantong 398 355 38 development and a Surabaya 17 54 property company 25 S$m  113 Investments of ~S$850m including:  New residential sites in 318 Singapore and Jakarta 191  Stakes in SOHO Hongkou in (3) 0 Shanghai and Saigon Centre 9M 2017 in HCMC 9M 2016 9M 2017 Property trading Property investment Hotels/Resorts REIT 11

Property  Sold 3,790 units in 9M 2017, with total Home sales sales value of ~S$2b  Overall sales volume grew ~8% yoy: 3,790 3,510  100 Lower sales in China due to 300 10 300 tightening measures 260 1,010  1,010 units sold in Vietnam, up ~4x yoy Units  2,940 Steady sales in Singapore 2,380  ~6,330 overseas homes sold to be recognised upon completion from 0 4Q 2017 through 2019 9M 2016 9M 2017 9M 2017  Sales value totaling ~S$2b China Vietnam Singapore Others 12

Property Portfolio  Residential landbank of ~62,000 homes in total  Completed commercial assets can generate annual income of ~S$75m when stabilised Commercial i Residential Gross floor area (sm) Launch-ready homes (units) 970,800 16,674 156,400 1,620 50,000 92,500 2,806 984 498,700 289,400 11,900 4,832 24,500 61,300 53,100 120,800 382,500 116,200 6,432 110,900 Completed Under Development 4Q 2017- 2019 China Vietnam Singapore Indonesia Others i Excludes Keppel REIT’s assets, and includes SOHO Hongkou, Shanghai 13

Floating water-cooled data centre technology Infrastructure 14

Infrastructure  Stronger performance driven by 9M 2017 net profit energy and infrastructure services S$97m, up 21% yoy  Keppel Marina East Desalination Plant commenced revenue recognition 97 80 18  Injected Keppel DC Singapore 4 into 19 4 Alpha DC Fund S$m 29  Investing in water-cooling technology 78 45 for data centres through a US startup (3) 0 (13)  Growing solutions for omnichannel 9M 2017 9M 2016 9M 2017 logistics and channel management Energy, Environment & Infrastructure services Data centres REIT & Trust Logistics and others 15

Marina Bay Financial Centre, Singapore Investments 16

Investments  Received eligibility-to-list for IPO and 9M 2017 net profit listing of Keppel-KBS US REIT S$216m, up 454% yoy  Alpha DC Fund closed at ~US$1.0b with CPPIB’s latest commitment and option 216  Doubled fund’s initial target size S$m  AUM of ~US$2.3b when fully 153 leveraged and invested  Keppel DC REIT acquired second 39 data centre in Dublin for S$100m 63 43  Keppel REIT started construction (4) 0 of Melbourne office development 9M 2017 9M 2016 9M 2017 Asset management Others 17

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 18

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 offices in Singapore development in China 19

Keppel Urban Solutions Integrator of urban solutions to create sustainable, highly liveable and digitally-connected communities Masterplanning Development and operation of horizontal infrastructure Connectivity and urban logistics Innovative programming Open platform to partner best-in-class technology providers 20

Creating & Capturing Value for the Group  Enhances value of land and Human-centric design-thinking embedded across all solutions properties  Creates multiple income streams:  Vertical development  Development, management & maintenance of horizontal mzz infrastructure  Provision of urban services  Opportunities to bring in co-investors Powered by intelligent cloud systems that enable sensing technology, IoT and analytics 21

Saigon Sports City Collaboration between Keppel Urban Solutions and Keppel Land  64 ha of land in prime District 2, HCMC  Features iconic developments such as Vietnam’s first one-stop hub for sports, entertainment and lifestyle activities  Incorporates latest biophilic design principles  Strategic collaboration with Microsoft to develop smart urban applications Artist’s impression of Saigon Sports City 22

Group Financial Highlights by CFO 23

3Q 2017 Financial Performance Net Profit 29% to S$291m EPS 29% to 16.0cts EVA from S$30m to S$86m 24

3Q 2017 Financial Highlights S$m 3Q 2017 3Q 2016 % Change Revenue 1,617 1,459 11 EBITDA 374 238 57 Operating Profit 324 185 75 Profit Before Tax 363 286 27 Net Profit 291 225 29 EPS (cents) 16.0 12.4 29 25

3Q 2017 Revenue by Segments S$m 3Q 2017 % 3Q 2016 % % Change Offshore & Marine 380 23 516 35 (26) Property 546 34 479 33 14 626 39 434 30 44 Infrastructure Investments 65 4 30 2 117 Total 1,617 100 1,459 100 11 26

3Q 2017 Pre-tax Profit by Segments S$m 3Q 2017 % 3Q 2016 % % Change Offshore & Marine 1 - 22 8 (95) Property 252 70 199 69 27 47 13 40 14 18 Infrastructure Investments 63 17 25 9 152 Total 363 100 286 100 27 27

3Q 2017 Net Profit by Segments S$m 3Q 2017 % 3Q 2016 % % Change Offshore & Marine - - 11 5 (100) Property 198 68 157 70 26 40 14 39 17 3 Infrastructure Investments 53 18 18 8 194 Total 291 100 225 100 29 28

9M 2017 Financial Performance Net Profit 11% to S$712m EPS 11% to 39.2cts from 7.6% to 7.7% Annualised ROE EVA from S$39m to S$61m Free Cash Inflow from S$552m to S$1,235m Net Gearing from 0.56x to 0.50x 29