AAA. Who we are. Incorporated in A commercial investment company headquartered in Singapore. Owned but not directed by the Singapore Government

Transcription

1

2 Who we are Incorporated in 1974 A commercial investment company headquartered in Singapore Owned but not directed by the Singapore Government Owns and manages assets; invests and divests with full commercial discretion and flexibility AAA Corporate credit rating of AAA/Aaa since its inaugural rating in 2004, by S&P Global Ratings and Moody s Investors Service respectively 630 staff in 11 offices in Asia, Europe, Latin America and the US

3 Temasek is an active and shareholder Temasek is a forward looking Temasek is a trusted

4

5 I N V E S T O R NET PORTFOLIO VALUE SINCE INCEPTION Temasek Net Portfolio Value since Inception S$275b Net portfolio value on 31 March Incorporation of Temasek on 25 June Financial year 75 began on 25 June 1974 and ended 31 December Financial year-end was changed from 31 December before 1993 to 31 March from 1994 onwards. 4 FRS39 Financial Instruments: Recognition and Measurement, introduced during the financial year ended 31 March 2006, requires available-for-sale financial assets to be measured at fair value.

6 I N V E S T O R NET PORTFOLIO VALUE UP S$111b OVER THE DECADE S$275 billion Net Portfolio Value 1 Up S$33 billion from last year (As at 31 March) 1 Equivalent to US$197 billion as at 31 March 2017.

7 ONE YEAR TOTAL SHAREHOLDER RETURN (TSR) AT 13% S$ TSR since inception at 15% I N V E S T O R Period TSR in US$ (%) TSR in S$ (%) (in years) Since Inception (1974) ve +ve (As at 31 March 2017)

8 I N V E S T O R ROLLING S$ TOTAL SHAREHOLDER RETURN (%) 43 One-year 10-year 20-year (9) (30) (As at 31 March)

9 LONG TERM RETURNS EXCEEDED RISK-ADJUSTED COST OF CAPITAL I N V E S T O R Since Inception (1974) 9 15 Total Shareholder Return in S$ terms (%) Risk-adjusted cost of capital S$14.6b Wealth Added for the year (As at 31 March 2017)

10 OUR TSR OUTPERFORMED INDICES OVER LONGER TERM PERIODS I N V E S T O R Since inception (1974) Temasek MSCI Singapore MSCI AC Asia ex-jp MSCI World NA NA NA NA (As at 31 March 2017)

11 MEASURED AND DISCIPLINED INVESTMENT AND DIVESTMENT PACE FOR THE YEAR I N V E S T O R (S$b) S$206 billion Invested over the decade Investments Divestments S$151 billion Divested over the decade 28 (As at 31 March)

12 I N V E S T O R STEADY GROWTH IN FOCUS AREAS Grown from 8% in 2011 to 24% in 2017 Mar 11 Mar % Technology Life Sciences & Agribusiness Non-Bank Financial Services Consumer Energy & Resources S$193b % S$275b Financial Services Translog & Industrials Telecom Real Estate Focus Areas Others 1 1 Others includes Credit, PEFI, and other legacy or special investments. (As at 31 March)

13 I N V E S T O R INVESTING IN GROWTH TRENDS (S$b) Financial Services TMT Insurance/Payments /FinTech Banks Technology & Media Telecom <S$1b S$9b S$4b S$17b (As at 31 March)

14 FOCUS AREAS AS A WHOLE OUTPERFORMED TOTAL PORTFOLIO SINCE 2011 I N V E S T O R Outperformed overall portfolio In-line with overall portfolio Total Portfolio Return Underperformed overall portfolio All New Investment s Technology Non-Bank Financial Services Life Sciences & Agribusiness Consumer Energy & Resources (As at 31 March 2017)

15 FINANCIAL SERVICES, TMT REMAIN OUR TWO BIGGEST SECTORS I N V E S T O R (%) Financial Services Telecommunications, Media & Technology Transportation & Industrials Consumer & Real Estate Life Sciences & Agribusiness Energy & Resources Multi-sector Funds Others (including Credit) (As at 31 March) 17 Note: Distribution based on underlying assets.

16 I N V E S T O R SINGTEL REMAINS LARGEST HOLDING 12 5 (%) Singapore Telecommunications Limited DBS Group Holdings Ltd (As at 31 March) China Construction Bank Corporation Rest of Portfolio

17 SINGAPORE LARGEST COUNTRY BY UNDERLYING EXPOSURE I N V E S T O R (%) Singapore China Rest of Asia North America Australia & New Zealand Europe Africa, Central Asia & the Middle East Latin America (As at 31 March) Note: Distribution based on underlying assets.

18 UNLISTED ASSETS MAKE UP 40% OF PORTFOLIO I N V E S T O R 33 (%) Liquid & sub-20% listed assets Listed large blocs ( 20% to <50% share) (As at 31 March) Listed large blocs ( 50% share) Unlisted assets Mainly cash and cash equivalents, and sub-20% listed assets.

19 BALANCE SHEET ALLOWS FOR MAXIMUM FLEXIBILITY I N V E S T O R Liquidity Balance 1 over Total Debt due in next 10 Years (x) 5x 5 Liquid Assets over Total Debt (x) 7x Cash and cash equivalents, and short term investments. (For the year ended 31 March)

20 I N V E S T O R FOR THE YEAR AHEAD G L O B A L O U T L O O K Emerging and mature markets driving global growth Global liquidity gradually tightening; and stretched valuations pose risk to returns Political risks remain

21 SUMMARY Measured and disciplined investment approach Shaping portfolio for sustainable growth Cautiously positive outlook, vigilant about risks

22

23 MERITT VALUES I N S T I T U T I O N

24 I N S T I T U T I O N BOARD OF DIRECTORS Chairman Deputy Chairman Directors Mr LIM Boon Heng Mr CHENG Wai Keung Chairman & Managing Director Wing Tai Holdings Mr KUA Hong Pak Senior Advisor ComfortDelGro Mr Bobby CHIN YC Member Council of Presidential Advisers Mr GOH Yew Lin Managing Director GK Goh Holdings Ms HO Ching Executive Director & CEO Temasek Holdings Mr Stephen LEE CY Chairman NTUC Income Mr LEE Theng Kiat CEO Temasek International Mr Michael LIEN JL Executive Chairman Wah Hin & Co Mr Robert NG CS Chairman Sino Land Company Mr TEO Ming Kian Chairman Vertex Venture Holdings Mr Peter R VOSER Chairman ABB Ltd Mr Marcus WALLENBERG Chairman Skandinaviska Enskilda Banken (SEB) Mr Robert B ZOELLICK Chairman AllianceBernstein LP

25 I N S T I T U T I O N INS & OUTS OF TEMASEK Divestments Investments and Associated Costs Dividends from Portfolio Distribution from Funds Major sources Dividends to Shareholder 1 Temasek Bonds Temasek Euro-commercial Paper (ECP) New Capital from Shareholder Bank Borrowings Additional sources Taxes Supporting Communities Staff-initiated Programmes We do not manage: Singapore CPF savings Singapore Government reserves Singapore foreign reserves 1 The dividends we pay to our shareholder are different from the NII/NIR Contributions to the Singapore Government Budget.

26 I N S T I T U T I O N FINANCING FRAMEWORK Temasek Bonds Maturity Profile and Coupon 1 Exchange rates as at 31 March 2017.

27 I N S T I T U T I O N TEMASEK CREDIT PROFILE Reflecting the fundamental strength of our financial position Dividend Income over Interest Expense (x) Net Portfolio Value over Total Debt (x) 19x x (For the year ended 31 March)

28

29 S T E W A R D OUR APPROACH TO COMMUNITY GIVING Setting Returns Aside for our Communities Hand-up instead of hand-out Excess returns above cost of capital Returns to be shared

30 COMMITTING TO COMMUNITIES S T E W A R D

31 S T E W A R D TOUCHING LIVES Capability and Capacity Building 10 Asia Nurse Leaders Forum 2017 Education and Professional Development School-Within-A-School Communities in Singapore CareNights@Morning Star Research and Innovation Soft Robotics Preventing Deep Vein Thrombosis Building Bridges ASEAN Community Forum Sustainability Bio-based Platforms for Mosquito Vector Control

32 S T E W A R D SUPPORTING SUSTAINABLE GROWTH Promoting economic growth in a sustainable manner 17 UN Sustainable Development Goals Active Economy Beautiful Society Clean Earth Encouraging businesses to achieve sustainable returns

33 S T E W A R D SUPPORTING SUSTAINABLE GROWTH Addressing sustainable challenges for a growing global population Enabling sustainable energy consumption Developing innovative solutions for a clean and cool earth Using science to improve lives and livelihood

34 Active investor Forward looking institution Trusted steward

35 Getting Temasek Temasek Digital