Keller Group Plc · LSE:KLR
Keller — Investor Day (October 2012)
20 slides from Keller's investor day presentation, Oct 16, 2012
Slide 1: Keller Group plc Capital Markets Day: Keller Asia
Keller Group plc Capital Markets Day 16 October 2012 Keller Asia
Slide 2: Contents
Contents • Overview of Keller Asia • ASEAN countries – Market conditions and outlook – Opportunities • India – Market conditions and outlook – Opportunities • Recent projects • Summary 1
Slide 3: Keller Asia - Overview
Keller Asia - Overview • Established businesses in Singapore, Malaysia and India – Fledgling operations in Indonesia and Vietnam • Clear market leader in Ground Improvement in Singapore, Malaysia and India – Existing Piling operations in Singapore and India – Commenced Piling in Malaysia – Increasin
Slide 4: Keller Asia - Overview
Keller Asia - Overview • Countries, especially in ASEAN region, work closely together – Able to share experience, employees and equipment – Best way for relatively small businesses to resource large projects • Over 900 employees in Keller Asia – Including over 300 in India – Finding enough, suitably
Slide 5: Keller Asia - Overview: Asian revenues by country
Keller Asia - Overview S$m Asian revenues by country Resource Piling in Singapore acquired 250 late 2009 - Singapore currently over 50% of 200 revenue 150 India and Malaysia growing in importance 100 Targeting Vietnam and Indonesia 50 Division earns higher margins than 0 Group average 2007 2008 2009
Slide 6: Asia Revenue by End Market
Asia Revenue by End Market H1 2012 Revenue balanced across Revenue £60m end markets - Residential almost solely in Singapore 18% 19% Infrastructure In India focussing on Power/Industrial/Manufacturing Infrastructure and Power/ Office/Commercial/Public Building Industrial/Manufacturing Residential se
Slide 7: Keller Asia – Competitive advantages
Keller Asia – Competitive advantages • Global brand and quality – established relationships with inward investors – health and safety – business ethics • Local management, expertise and cost structure – strong local network and contacts • Excellent engineering skills leading to Design & Build soluti
Slide 8: Singapore Market Outlook
Singapore Market Outlook The annual construction demand for 2013 to 2014 is expected to range between £10bn and £13bn Urban rails and expressways worth about £28bn expected to be built by 2021. Includes Thomson Line (£9bn) and North-South Expressway (£4bn) Other major projects include Mega Tuas Port
Slide 9: Malaysia Market Outlook
Malaysia Market Outlook GDP growth around 5% expected in 2013 and driven by Govt spending Urban rails (KVMRT) and expressways worth about £19bn expected to be spent by 2019 Major infrastructure work worth £6bn will be awarded in 2012 & 2013 Major commercial building development around the new KL Int
Slide 10: Indonesia Market Outlook
Indonesia Market Outlook The annual construction demand for 2013 to 2014 is expected to be about £10bn with main demand coming from the infrastructure sector Notable major projects are 20,000km of toll roads, the Sunda Bridge linking Java and Sumatra Island, Jakarta Metro and Jakarta Port Major obst
Slide 11: Vietnam Market Outlook
Vietnam Market Outlook GDP Growth Economy not doing well due to : - • Weak financial system (bad debt is 10% of total loans in banks and low liquidity) • Reduction in FDI (28% reduction compared to 2011) • Ongoing restructuring of State Owned Enterprises (SOEs) 2013 GDP growth expected to remain abo
Slide 12: Opportunities – ASEAN Countries
Opportunities – ASEAN Countries • Singapore – significant Government investments in infrastructure and residential housing. Opportunities to do more packaged work involving both heavy foundations and ground improvement • Malaysia – major infrastructure spending on KL metro lines and expressways. Opp
Slide 13: India Market Outlook
India Market Outlook • GDP was at five year low of 5.3% in Q2 2012 • Reasons include: - Ineffective monetary policies - Weakening of Indian Rupee - High inflation • Signs of some improvement • Forecast GDP for 2013-2014 of 6-7% (Source: Asian Development Bank) 12
Slide 14: Opportunities – India
Opportunities – India (as per XII plan – 2012 - 2017) £60bn £210bn • Projected construction opportunity in the power sector is ~ £60bn for 5 years • Total construction opportunity is ~ £210bn for 5 years 13
Slide 15: Opportunities - India
Opportunities - India • Strong market growth over the medium to long term – Only international player in India (so far ....) • Power and Infrastructure sectors expected to lead the way – Matches Keller’s sector focus • Opportunity to graduate into selected main contractor services such as concrete s
Slide 16: Power Sector in India
Power Sector in India • Keller India has performed £20m worth of work on 7 power projects (coal, gas, hydro and wind power) • Combination of a range of ground improvement and heavy foundation techniques (key competitive advantage) 15
Slide 17: Marina Bay Projects - Singapore
Marina Bay Projects - Singapore • £70m of contracts undertaken by Resource Piling in the Marina Bay area (Sail, MBFC, Gardens by the Bay) • Clear leader in big and deep piles (92m) in soft marine clays in Singapore • Ability to conduct large load tests up to 5700t (key competitive advantage) 16
Slide 18: Vale Project - Malaysia
Vale Project - Malaysia £30m single contract in Malaysia Market leader in ground improvement in Malaysia - Re-design capability and range of techniques a competitive advantage Global capabilities exploited - Repeat client from Brazil - Technical & management support from Europe - Operational input f
Slide 19: Keller Asia Summary
Keller Asia Summary • Our Asian markets have substantial potential for growth and contribution to the Keller Group • Established businesses well positioned after five years of strong growth – Clear market leader in ground improvement and a growing presence in heavy foundations • Scope for further ab
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