Presentation to Investors. HONG KONG November 2015

Transcription

1 Presentation to Investors HONG KONG November

2 Disclaimer This release 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 industry and economic conditions, competition, and legal, governmental and regulatory changes. The forward-looking statements reflect the current views of Management on future trends and developments. 2

3 Urbanisation Trends Rising at unprecedented speed and scale By 2050, two thirds of the world's population will live in cities. In 15 years, 3 billion people will join the middle class. In 20 years, there will be 41 megacities and many more fast-growing urban settlements. From , the world will need 85% more power. New demand for: Energy Housing Jobs Proper sanitation Goods & services Better communication modes 3

4 Strong Verticals Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world s sustainable urbanisation needs through key businesses in Offshore & Marine, Property, Infrastructure and Investments. 4

5 Townships* Data Centres* Gas Value Chain* Configured for Value Creation Harnessing Core Strengths Fostering Business Collaboration Technology & Innovation Capital Management Engineering & Project Management Operating & Maintenance Property development District cooling Waste to energy Logistics services Property development Power generation District cooling Stranded gas fields FLNG solutions Import & shipping Power generation Retail & delivery *For illustration 5

6 Capturing Value Keppel is poised to capture value and recurring income from asset creation till even after injection into a trust or fund. Project-based Sale + Service Design + Build Operation Revaluation & Divestment Fee-based Offshore & Marine Property Infrastructure Investments Own + Operate Midstream assets Commercial properties Plants & Data Centres Stabilise + Monetise Unlocking value Recycling & reinvesting capital for higher returns Trusts & Funds Fund Management Operating & Maintenance Services Facilities & Property Management 6

7 Infrastructure Property Recycling Capital Keppel will focus on building, owning and operating assets, which will be recycled for higher returns when and where appropriate. One of the largest Pan-Asian commercial REITs listed on SGX AUM of approx. S$8.2b Manager of five private equity funds AUM* of approx. S$10.5b Combined AUM of ~ S$24.2b Largest Singapore infrastructure trust listed on SGX AUM of approx. S$4.3b Asia s first data centre REIT listed on SGX AUM of approx. S$1.2b * When fully invested and leveraged. 7

8 Resilient Performance Keppel s robust multi-business strategy delivers creditable results through cycles. Net profit by business segment (S$m) Net profit by income type (S$m) 1, (19%) 80 (7%) 105 (9%) 1, (14%) 333 (30%) 85 (8%) 1, (26%) 89 (8%) 1, (26%) 299 (27%) 753 (65%) 542 (48%) 768 (66%) 528* (47%) 9M14 Offshore & Marine Infrastructure Property 9M15 Investments 9M14 9M15 Project-based Recurring Revaluations, Major Impairments & Divestments * Includes losses of under S$200m for the cost to complete Doha North Sewage Treatment Works. 8

9 9 KEY BUSINESS UPDATES

10 Offshore & Marine: Stable Backlog Net orderbook (S$b) Net orderbook as at end-sept Others 3% Specialised vessels 4% Newbuild jackups 19% S$10.0b Newbuild semis 46% 3.4 FPSOs/FLNGs 28% Sept 2015 Year Secured S$1.7b worth of contracts as at end-sept 2015, including 1 FLNG conversion, 1 ice-class multi-purpose vessel, 2 liftboats and 1 FPSO conversion 10

11 Primed for the Upturn Value engineering Rightsizing shipyard operations Sustaining investments in R&D and for productivity improvements Widening products & services Offering LETOURNEAU rig designs through the sale of rig kits and delivery of ready-to-drill solutions Providing aftermarket services for LETOURNEAU rigs Keppel to acquire Cameron s offshore rig business 11

12 Expanding Suite of Solutions Inspection, Maintenance & Repair, Support and Decommissioning Subsea Support Next-Generation Drilling 12

13 Expanding Suite of Solutions Gas to Liquid Liquid to Gas Gas to Power Offshore solutions - FLNG conversion FSRU conversion LNG-fuelled power barge Onshore plant- PreNex technology LNG carrier Liquid to Users Gas as Fuel Dual-fuel ASD Tug 13

14 Property: Focusing on Returns Keppel Land will focus on improving returns to the Group. Privatisation of Keppel Land Positive on Asia s urbanisation trends and mid to long-term outlook 30-years of experience in property; minimal integration risks Flexibility to right-size balance sheet and allocate resources across the Group for optimal returns % year Return on Shareholder Funds Keppel Land amongst the highest at 18.8% * Company that is listed in Hong Kong. 14

15 Property Portfolio Residential Launch-Ready Homes (units) Commercial GFA Under Development (sm) 1, ,590 2,150 53, , ,600 2, , ,400 9, ,000 (4Q15 - FY17) China Vietnam Indonesia Singapore Others China Philippines Indonesia Vietnam Myanmar * As at end-sept

16 Infrastructure: Strengthening Performance Keppel Infrastructure Handed over both phases of the Greater Manchester EfW Plant Doha North Sewage Treatment Works will be substantially completed by end-2015 Keppel Infrastructure Trust Completed full quarter of operations after combination of KIT and CitySpring, and acquisition of 51% interest in Keppel Merlimau Cogen Keppel Merlimau Cogen plant is a top-tier gas-fired power plant in Singapore. 16

17 Infrastructure: Growing Portfolio Keppel T&T Embarked on fourth Singapore data centre Commenced operations at Almere Data Centre 2, the Netherlands Keppel DC REIT Acquired Intellicentre 2 in Australia, and maincubes Data Centre in Germany in the first year of listing Intellicentre 2 in Sydney, Australia 17

18 18 FINANCIAL HIGHLIGHTS

19 Key Figures S$m FY14 FY13 % Chg 9M15 9M14 % Chg Revenue 13,283 12, ,817 9,358 (16) Operating Profit 2,373 2, ,183 1,447 (18) Net Profit 1,885 1, ,120 1,159 (3) EPS 103.8cts 102.3cts cts 63.9cts (3) EVA 1,778 1, ,032 (56) Free Cash Flow (784) (133) n.m. Annualised ROE 18.8% 19.5% Reduction of 70bps 13.6% 14.5% Reduction of 90bps Net Gearing 0.11x 0.11x x 0.19x Increase of 0.33x 19

20 Revenue by Segments S$m FY14 % FY13 % 9M15 % 9M14 % Offshore & Marine 8, , , , Property 1, , , Infrastructure 2, , , , Investments Total 13, , , ,

21 Net Profit by Segments S$m FY14 % FY13 % 9M15 % 9M14 % Offshore & Marine 1, Property Infrastructure Investments Total 1, , , ,

22 Net Profit & EPS Net profit (S$m) 2,237 EPS (Cents) ,946 1,540 1, ,846 1,885 4Q Q Q Q 339 1,120 3Q 363 2Q 397 1Q Q Q 3Q Q 2Q Q 1Q

23 ROE & Dividend Annual dividend payout stayed at above 40% of net profit over the past 13 years. ROE (%) & Dividend (Cents) Distribution in specie ~20.9cts/share Plus Distribution in specie ~28.6cts/share Plus Distribution in specie ~9.5cts/share Plus 29.1% 25.3% 27.2% 26.4% % 18.8% % ROE Interim Dividend Full-Year Dividend 23

24 24 Keppel has emerged stronger from every crisis in the past 47 years. Responding to challenges with agility, we will continue to drive performance and build competitive advantage in all our businesses.