Keppel Infrastructure Trust · SGX:A7RU
Keppel Infrastructure Trust — Merger or Acquisition (August 2022)
14 slides from Keppel Infrastructure Trust's merger presentation, Aug 8, 2022
Slide 1: Proposed Acquisition of a Leading Integrated Waste Platform in South Korea
Proposed Acquisition of a Leading Integrated Waste Platform in South Korea 8 August 2022
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: Proposed acquisition of a leading waste platform in South Korea
Proposed acquisition of a leading waste platform in South Korea Acquisition marks KIT’s expansion into South Korea ▪ Jointly investing with Keppel entities to acquire Eco Management Korea (EMK), with KIT holding 52% 52% Investor Holdco majority interest ▪ EMK is a leading integrated waste management
Slide 4: EMK: South Korea's leading integrated waste platform
EMK: South Korea’s leading integrated waste platform Defensive business backed by blue chip customers Solid Liquid Landfill 3rd largest Largest 4th largest incineration capacity in South waste oil refining player in South landfill capacity in South Korea, and Korea (404 tons/day) Korea (154 tons/day
Slide 5: EMK: Essential service provider with nationwide coverage
EMK: Essential service provider with nationwide coverage Strong presence in key regions including the Seoul Metropolitan Area and Yeongnam Businesses strategically located in key industrial regions Incineration facilities in Seoul Metropolitan, Chungcheong and Honam Korea Environment Development (An
Slide 6: EMK: Strong operational track record with best-in-class operations
EMK: Strong operational track record with best-in-class operations Providing essential waste management services Fully-integrated value chain that enhances Strong Operational Best-in-class operations Track Record customer retention and satisfaction 95% >340 Designated Fly ash Solidified fly ash oper
Slide 7: Key investment highlights
Key investment highlights Rare opportunity to acquire a waste management platform of scale in South Korea 1. Strategic expansion into a waste management market supported by strong tailwinds 2. High barriers of entry favouring incumbent players with scale 3. Draw on proprietary expertise across Keppe
Slide 8: Strategic expansion into a market supported by strong tailwinds
1 Strategic expansion into a market supported by strong tailwinds Supported by continued waste production and limited growth in incineration and landfill capacity Increased Waste Production Waste Treatment Capacity 2.5% CAGR 4.9% CAGR 630 647 584 598 614 614 630 647 573 584 598 534 545 545 573 497 5
Slide 9: High barriers of entry favouring incumbent players with scale
2 High barriers of entry favouring incumbent players with scale Sustainable competitive advantage creates favourable macro environment for existing players 1 Increasingly stringent environmental policies/regulations ✓ Strong operational expertise ✓ Strong funding capability 2 Challenges in obtaining
Slide 10: Leveraging proprietary expertise across the Keppel Group
3 Leveraging proprietary expertise across the Keppel Group Draw on the Group’s development and operational track record to value add and grow EMK Keppel Infrastructure Trust ▪ Over a decade of track record in managing Proven and patented WTE technologies WTE and water treatment facilities: owns used
Slide 11: Accretive acquisition that strengthens portfolio resiliency
4 Accretive acquisition that strengthens portfolio resiliency DIPU expected to increase by 4.2% from 3.85 cents for FY2021 to 4.01 cents Funds from Operations(1)(2) Gearing(1) DIPU (S$’m)(1)(2) (S$’m) 4.2% 4.0% 9.2% 29.5% 4.01 206.8 3.85 198.8 20.3% FY2021 Pro-forma FY2021 Pro-forma As of Pro-forma
Slide 12: Accretive acquisition that strengthens portfolio resiliency
4 Accretive acquisition that strengthens portfolio resiliency Enhance KIT’s income diversification with maiden acquisition in South Korea ▪ Growing Environmental Services segment from 8% to 15% of AUM as at 30 Jun 2022: key essential businesses and assets with defensive cash flows ▪ Expansion into S
Slide 13: Supports KIT's ESG targets, contributing to the circular economy
5 Supports KIT's ESG targets, contributing to the circular economy Waste management is an essential service for building sustainable and liveable cities Waste oil refining, waste acid / alkali neutralization, production of Waste Derived Fuel allows for recycling and Critical reuse of essential raw m
Slide 14: Thank You
Thank You www.kepinfratrust.com Connect with us on:
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