Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Merger or Acquisition (November 2018)
33 slides from Keppel Infrastructure Trust's merger presentation, Nov 15, 2018
Slide 1: Proposed Acquisition of Ixom HoldCo Pty Ltd
Proposed Acquisition of Ixom HoldCo Pty Ltd 15 November 2018
Slide 2: Important Notice
Important Notice The information contained in this presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue or any solicitation of any offer or invitation to purchase or subscribe for any units (“U
Slide 3: Table of Contents
Table of Contents 1. Proposed Acquisition of Ixom 2. Merits of the Proposed Acquisition 3. Pro Forma Financial Impact 4. Conclusion 5. Appendices 2
Slide 4: 1. Proposed Acquisition of Ixom
1. Proposed Acquisition of Ixom
Slide 5: Proposed DPU Yield Accretive Acquisition of Ixom
Proposed DPU Yield Accretive3 Acquisition of Ixom Acquisition Summary Merits of the Proposed Acquisition 1 ▪ Proposed acquisition of a 100% stake in Ixom HoldCo Pty Ltd (“Ixom”) A Strong and Stable Infrastructure Business ▪ Ixom: One of the leading industrial Supported by a large network of well-pos
Slide 6: Complementary Acquisition for KIT
Complementary Acquisition for KIT Acquisition is a logical fit with KIT’s value proposition Alignment with KIT’s investment strategy: ✓ Long-term stable cash flows with potential growth ✓ Provides key products and fundamental services ✓ Strong and stable business sectors ✓ Significant scale with lar
Slide 7: Ixom: A Defensive Industrial Infrastructure Business
Ixom –AADefensive Ixom: DefensiveIndustrial IndustrialInfrastructure InfrastructureBusiness Business ~80% EBITDA SOLE is Infrastructure-backed1 manufacturer of liquefied chlorine in AUS2 Approximately #1 A$900M chemicals manufacturer and Asset Replacement Value2 distributor in ANZ2 A$1,225M #1 distr
Slide 8: Ixom: Business Overview
Ixom’sOverview Ixom: BusinessofOverview Key Businesses Ixom provides key chemicals to diverse end markets Caustic soda and Chlorine and Industrial, Packaged & Key segments Water Treatment & New Zealand chlorine derivatives Bulk - Bulk Other Chemicals FY18 EBITDA Contribution1 50% 23%2 20% Descriptio
Slide 9: Ixom: Extensive Network of Infrastructure Assets
Ixom: Extensive Network of Infrastructure Assets 1 Extensive distribution network underpins earnings defensiveness Well-positioned locations Darwin AUSTRALIA across key regions in Australia and New Zealand 2 Brisbane Fiji Strong and stable business Perth Sydney Adelaide Port Kembla Auckland due to s
Slide 10: Ixom: Stable and Diversified Customer Base
Ixom: Stable and Diversified Customer Base Diversified end-market mix2 with a EBITDA contributions well-spread ~80% of EBITDA is wide reach across multiple across several key segments infrastructure-backed1 industries in AUS and NZ 7% 4% 20% 5% 7% 20% 20% 8% 50% 8% 18% 8% 23% 80% 9% 13% Chlorine and
Slide 11: 2. Merits of the Proposed Acquisition
2. Merits of the Proposed Acquisition
Slide 12: Key Investment Highlights
Key Investment Key Investment Highlights Highlights 1 A Strong and Stable Infrastructure Business Supported by a large network of well-positioned infrastructure 2 A Business with Growth Potential Amongst the leading businesses in the provision of key chemicals for fundamental industries with favoura
Slide 13: Ixom's Business is Supported by High Barriers to Entry
Ixom’s 1. Business A Strong is Supported and Stable by High Infrastructure Barriers To Entry Business Characteristics Ixom’s Operations ▪ Scale and well-positioned locations gives Ixom an enviable a) Infrastructure market position ▪ Provides key chemicals to customers b) Provision of key ▪ An exampl
Slide 14: 1. Extensive Network of Infrastructure Assets
1. Extensive Network of Infrastructure Assets Strong network of well-positioned infrastructure Perth Adelaide Brisbane Melbourne Sydney ▪ 4 tank sites and 2 terminals ▪ 4 tank sites and 2 terminals ▪ 6 tank sites and 6 terminals ▪ 1 chlor-alkali facility, 3 tank ▪ 1 chlor-alkali facility, 5 tank wit
Slide 15: 2. Strong Markets with Favourable Industry Growth Trends
2. Strong Markets with Favourable Industry Growth Trends Favourable industry fundamentals support Ixom’s long-term growth Stable urban Steady growth forecast2 Global milk demand is forecast population growth1 for Australia to increase by >35% in 20303 Population (in millions) 3.2% 2.6% 2.8% 2.7% 6.2
Slide 16: 2. Defensive Characteristics with Favourable Industry Trends
2. Defensive Characteristics with Favourable Industry Trends Predictable and stable cash flows ▪ Stable revenues as approximately 80% of EBITDA is derived from infrastructure assets1 ▪ Ixom’s chemicals are fundamental and essential to customers’ operations ▪ Long-term growth is expected in Ixom’s ke
Slide 17: 2. Illustration of Critical Chemicals Used in Selected Industries
2. Illustration of Critical Chemicals Used in Selected Industries What this translates to: 1 2 3 Ixom’s products are key Ixom provides key chemicals Ixom ensures reliability to to customers’ production, that are fundamental to the customers, translating to creating a strong customer operations of cu
Slide 18: 3. Large and Diversified Customer Base
3. Large and Diversified Customer Base Diversified customer base Supported by diverse customer base Ixom has a diversified customer base, comprising Concentration of customers 1 mainly of blue-chip companies and municipalities 15% 1 Key infrastructure assets are well-positioned 8% 2 Production of ke
Slide 19: 4. Strengthen KIT's Portfolio Mix and Overall Value Proposition
4. Strengthen KIT’s Portfolio Mix and Overall Value Proposition Increases exposure to the ‘Distribution & Network’ segment for greater stability Total Assets by Type (KIT)1 Total Assets by Type (with Ixom)1 Water and Waste Water and Waste Treatment (concessions) Treatment (concessions) 19% 13% Energ
Slide 20: 3. Pro Forma Financial Impact
3. Pro Forma Financial Impact
Slide 21: Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA This information is for illustration purposes only By Asset (KIT)1,2 By Asset (with Ixom)1,2 Water and Waste Energy Water and Waste Energy Treatment 22% Treatment 15% (concessions) (concessions) 34% 22% 22% 22% 15% 34% 13% 2% 20% 13% 4% Distribution 35% Distribution 20% and
Slide 22: Pro Forma Financial Effects
Pro Forma Financial Effects This information is for illustration purposes only As at 30 September 20181 Placement cum Rights Issue3 Preferential Offering2 (S$ cents) KIT KIT KIT Change Change (with Ixom) (with Ixom) Cash Flows (annualised) Funds from operations ($’m) 157 218 +38.9% 218 +38.9% Funds
Slide 23: Pro Forma Financial Effects (cont'd)
Pro Forma Financial Effects (cont’d) This information is for illustration purposes only As at 31 December 20171 Placement cum Rights Issue3 Preferential Offering2 (S$ cents) KIT KIT KIT Change Change (with Ixom) (with Ixom) Cash Flows Funds from operations ($’m) 178 244 +37.1% 244 +37.1% Funds from
Slide 24: 4. Conclusion
4. Conclusion
Slide 25: Key Investment Highlights
Key Investment Key Investment Highlights Highlights 1 A Strong and Stable Infrastructure Business Supported by a large network of well-positioned infrastructure 2 A Business with Growth Potential Amongst the leading businesses in the provision of key chemicals for fundamental industries with favoura
Slide 26: 5. Appendices
5. Appendices
Slide 27: History of Ixom
History of Ixom Growth and Development of Ixom over the years … 2002 - 2006 Expanded through acquisitions of new businesses and plants, as well as upgrading of existing plants:- 1950s 2017 Development of Botany ▪ Acquired Marplex Restructured the chlor-alkali plant ▪ Entered into water treatment tra
Slide 28: Keppel Infrastructure Trust Structure Post-Ixom Acquisition
Keppel Infrastructure Trust Structure Post-Ixom Acquisition Keppel Capital Keppel Infrastructure Institutional and Public Investors The Trustee-Manager can leverage The Trustee-Manager can the scale and resources of a larger leverage the Sponsor‘s expertise asset management platform and track record
Slide 29: Portfolio Overview
Portfolio Overview KIT’s portfolio comprises highly strategic assets providing industrial chemicals, utilities, power and telecoms infrastructure Description Customer and Contract Terms Primary Source of Cash Flows Industrial infrastructure business in Australia Payments from customers for delivery
Slide 30: Three-Pronged Growth Strategy
Three-Pronged Growth Strategy Provide long-term, regular and predictable distributions 1 2 3 Organic Growth from Existing Portfolio Keppel Synergy Acquisition Strategy KIT New Investments Keppel Capital Businesses / Assets that generate Bridge financing long term stable cash flows with some grow
Slide 31: Ixom is a Natural Fit with KIT's Existing Portfolio
Ixom is a Natural Fit with KIT’s Existing Portfolio Leveraging existing know-how CityGas IXOM 1 ▪ Amongst the leading businesses in the production/distribution of liquefied chlorine and Provision of ▪ Produces town gas other chemicals essential services ▪ Essential for cooking and industrial heating
Slide 32: Ixom is a Natural Fit with KIT's Existing Portfolio
Ixom is a Natural Fit with KIT’s Existing Portfolio Leveraging existing know-how SingSpring Desalination Plant Ulu Pandan NEWater Plant 1▪ KIT’s SingSpring Desalination Plant and Keppel Seghers Ulu Pandan NEWater Plant are involved in the water treatment value chain 2▪ These plants utilise chlorine,
Slide 33: Thank You
Thank You www.kepinfratrust.com
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