Keppel's Presentation Slides to Investors
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June 2024
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Keppel's Presentation Slides to Investors
- 2. 2 Embarked on major transformation Shed conglomerate structure and advanced growth as a global asset manager and operator Accelerating growth Announced strategic acquisition of leading European real estate manager, Aermont Capital Divested O&M business Unlocking $9.4bi in value for shareholders over time 2022 2023 Keppel: 49.3% Keppel: 61.1% Source: Bloomberg Total shareholder return Transformed for growth Exceeded asset monetisation target $5.4b announced since Oct 2020, of which $950m was in 2023 2023: One of the most transformational years in Keppelās history Renamed Keppel Ltd. Started operating as one horizontally-integrated company Feb 2023 May 2023 Nov 2023 Dec 2023 Jan 2024 STI: 8.3% STI: 4.7% Delivered on strategy with strong shareholder returns. i As announced in the Company's 1Q23 business update. Announced highest profit of $4,067m in 55-year history Feb 2024
- 3. 91 86 412 687 FY22 FY23 Asset Mgmt Income Operating Income $503m $773m 367 696 44 (37) 92 114 FY22 FY23 Infrastructure Real Estate Connectivity $773m $503m Transforming earnings with more recurring income Recurring income by segments Recurring income by sources 54% growth in recurring income yoy, reflecting Keppelās strategy, and our shift away from lumpy EPC and development profits 88% of net profit from continuing operations was recurring in FY23, vs 60% in FY22, underpinned by strong infrastructure earnings 3
- 4. i Proposed divestment is subject to completion/relevant approvals Asset monetisation announced since Oct 2020 >$5.5b Driving capital-efficient growth through asset-light model Cash payment received from Asset Co in 1Q24 $71.3m Focused on achieving $10-$12b in asset monetisation by end-2026 Includes ~$170m in YTD 2024, mainly from the proposed divestment of a residential project in Wuxi, Chinai 4
- 5. Fueling organic growth through flagship funds Presently, we have 19 active private funds and plan to launch 3 new funds for data centres, education assets and private credit in 2024. Achieved first close for Keppel Sustainable Urban Renewal Fund in Apr 2024 Keppel Core Infrastructure Fund continues to receive good investor interest Partnering Mitsui Fudosan on data centre opportunities in Japan and Southeast Asia Assets and M&A deals being pursued >$14b Sustainable Urban Renewal Strategy Data Centre Fund Series Infrastructure Fund Series 5
- 6. Accelerating growth: Completed acquisition of leading European asset manager Aermont Immediate, significant foothold in Europe Expands asset mgmt capabilities beyond Asia Pacific, bolstering Keppelās presence and value proposition to global LPs Expanding network of blue-chip LPs Through Aermontās longstanding relationships with over 50 global clients, many of whom are new to Keppel Deepening talent pool Experienced senior team with extensive track record and networks in Europe Accelerating FUMi growth Pro Forma as at end-2023 2030 Target $24b Aermont FUM $60b Potential to further grow Aermontās FUM by up to 2.5x $200b $79b i Gross asset value of investments and uninvested capital commitments on a leveraged basis to project fully-invested FUM. ii Assumes that the acquisition of the first 50% stake in Aermont Capital was completed on 31 Dec 2023. ii 6
- 7. Strong interest in Keppelās real assets Increase in fundraising and dealmaking activities expected as inflation eases and interest rates stabilise in 2024. ā¢ Global energy transition and climate action driving demand for Keppelās renewables, clean energy, decarbonisation and environmental solutions ā¢ Developing Singaporeās first hydrogen-ready and most advanced power plant ā¢ Pressing need to decarbonise real estate driving demand for more sustainable solutions ā¢ Incorporating differentiated Sustainable Urban Renewal solutions as part of new assets and asset enhancement initiatives strategy ā¢ Growing demand for more efficient and greener data centres amidst proliferation of Generative AI ā¢ Creating modular data centre campus among other leading edge solutions that harness cleaner energy sources Infrastructure Real estate Connectivity Keppel Sakra Cogen Plant Keppel South Central DataPark+ 7
- 8. ā¢ Harnessed Keppelās deep industrial roots to transform the Company into a global asset manager and operator ā¢ Providing unparalleled value proposition to investors with our strong investment track record, operating capabilities and domain knowledge ā¢ Investors also find Keppelās active value adding approach to creating superior returns appealing ā¢ Keppelās shareholders have and will continue to benefit from our transformation: ā¢ We are running more efficiently as one integrated company ā¢ Our earnings are much more recurring and should attract valuations based on growth multiples Conclusion Keppel is well-positioned to ride the next wave of quality, sustainable growth. 8
- 9. Disclaimer 9 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCRIBE FOR OR BUY SECURITIES IN ANY JURISDICTION, INCLUDING IN THE UNITED STATES. This presentation is for information purposes only and does not have regard to your specific investment objectives, financial situation or your particular needs. Any information in this presentation is not to be construed as investment or financial advice and does not constitute an invitation, offer or solicitation of any offer to acquire, purchase or subscribe for securities or other financial instruments in Keppel Ltd. (āKeppelā). The past performance of Keppel is not indicative of the future performance of Keppel. You should exercise judgment in your own financial decisions. If in doubt, please consult with your professional advisers. Unless explicitly indicated otherwise, all monetary values denoted as ā$ā within this presentation are to be interpreted as referring to Singapore dollars.