Keppel Ltd. · SGX:BN4
Keppel — Non-Deal Roadshow (May 2022)
16 slides from Keppel's roadshow presentation, May 24, 2022
Slide 1: Presentation to Investors
Presentation to Investors New York & Boston 24-25 May 2022
Slide 2: Accelerating Vision 2030 execution
Accelerating Vision 2030 execution Keppel made strong progress in executing Vision 2030, despite volatile market conditions and operational challenges imposed by COVID-19. Driving business Good progress Making Driving transformation & in asset sustainability integration & earnings growth monetisatio
Slide 3: Driving business transformation organically & inorganically
Driving business transformation organically & inorganically Simplifying and focusing Keppel’s business • Signed definitive agreementsi for proposed combination of Keppel O&M and Sembcorp Marine and sale of Keppel O&M’s legacy rigs and associated receivables to Asset Co • Signed agreement to divest K
Slide 4: Strong earnings growth: sharp reversal from loss in FY20
Strong earnings growth: sharp reversal from loss in FY20 FY21 net profit crossed S$1b for first time since 2015. • All segments performed better yoy for FY21, contributing to ROE of 9.1%. Net profit Net gearing Free cash inflow FY21 total dividend of 33.0 cts/share • Includes final dividend of 21.0
Slide 5: Growing recurring income in line with Vision 2030
Growing recurring income in line with Vision 2030 Higher recurring income underpinned by stronger contributions from asset management and REITs & Trust. Recurring income grew 33% yoy in FY21 Recurring income in FY21 Others Connectivity S$8m S$35m S$292m S$220m REITs & Trust Asset S$142m management S
Slide 6: Strong progress in asset monetisation
Strong progress in asset monetisation • Asset monetisation will be a consistent feature of Keppel’s business model going forward • Capital unlocked will be used to fuel growth plans and reward shareholders Announced monetisation from Oct 2020 to end-Mar 2022 via Keppel- Monetisable Assets managed RE
Slide 7: Simplifying business and realising value from proposed combination of Keppel O&M & Sembcorp Marine
Simplifying business and realising value from proposed combination of Keppel O&M & Sembcorp Marine and resolution of legacy rigs Current structure Post-transaction structure KCL KCL shareholders shareholders 100% 46%1 100% 10%1 Combined Entity Segregated Account 10% + securities 100% 100% 100% Out-o
Slide 8: Realisable value and financial impact
Realisable value and financial impact Realisable value: c.S$9.42b + Including Out-of-Scope Assets Asset Co Combination transaction Excluding: comprising mainly: Floatel & Dyna-Mac S$4.87b1 in Combined S$0.5b S$0.3b S$4.05b + Entity Shares + Cash KCL’s EPS2, 3 KCL’s NTA/share2, 3 KCL’s net gearing ra
Slide 9: Seizing opportunities in renewables, clean energy, decarbonisation & environmental solutions
Seizing opportunities in renewables, clean energy, decarbonisation & environmental solutions Growing renewables portfolio Actively pursuing opportunities such as Target importing renewable Announced capacity 7GW by 2030 power to Singapore, 1.1GW developing EV charging infrastructure, secured • Annou
Slide 10: Driving Keppel Land's transformation into an asset-light urban space solutions provider
Driving Keppel Land’s transformation into an asset-light urban space solutions provider Keppel Land completed monetisation with total proceeds of ~S$2.0b and net gains of over S$450m since Oct 2020. Residential portfolio held at Commercial portfolio has Embracing new business Advancing sustainable u
Slide 11: Expanding connectivity solutions offerings
Expanding connectivity solutions offerings • COVID-19 further drove demand for digital connectivity solutions. • M1’s 5G SA network rollout progressing well, achieved over 5G SA 65% outdoor coverage in Singapore as at end-Mar 2022 network/ • 2nd largest postpaid customer base in Singapore ICT 5G • E
Slide 12: Growing asset management business with AUM increasing 14% yoy in 2021
Growing asset management business with AUM increasing 14% yoy in 2021 • Keppel Capital raised total equity of about S$3.5b in FY21. • Completed around S$5.5b in acquisitions and divestments in FY21. Assets under management (AUM) Asset management fees iii by asset class i grew ~29% yoy for FY21 S$42b
Slide 13: Investments into new technology & startups bearing fruit
Investments into new technology & startups bearing fruit • Gaining early access to high value IP and technology, as well as innovation teams in areas aligned to Vision 2030. Fund investments Investments have yielded attractive gains Early-mid stage Prop Tech Enterprise & China Tech growth technology
Slide 14: Strong progress in other non-financial Vision 2030 targets
Strong progress in other non-financial Vision 2030 targets • Sustainability will increasingly be a central part of Keppel’s purpose and corporate identity. Advancing Driving Developing sustainability goals innovation human capital • Committed to halve Scope 1 & 2 carbon • Digitalisation • Scored 84%
Slide 15: In conclusion
In conclusion • Guided by Vision 2030, Keppel will emerge stronger, more relevant, and on a faster growth path. KEY ATTRIBUTES & ENABLERS Sustainability Asset light Technology >S$1 FY21 net profit, sharp yoy >S$3.2 Assets monetised 33.0 Strong dividend growth for FY21 vs billion improvement billion
Slide 16: Disclaimer
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 those arising from COVID-19, industry and economic conditions, competition,