Presentation to Investors HONG KONG 25-26 November 2015 1
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
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 2010-2040, the world will need 85% more power. New demand for: Energy Housing Jobs Proper sanitation Goods & services Better communication modes 3
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
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
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
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$1.2b * When fully invested and leveraged. 7
Resilient Performance Keppel s robust multi-business strategy delivers creditable results through cycles. Net profit by business segment (S$m) Net profit by income type (S$m) 1,159 221 (19%) 80 (7%) 105 (9%) 1,120 160 (14%) 333 (30%) 85 (8%) 1,159 302 (26%) 89 (8%) 1,120 293 (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$200m for the cost to complete Doha North Sewage Treatment Works. 8
9 KEY BUSINESS UPDATES
Offshore & Marine: Stable Backlog Net orderbook (S$b) Net orderbook as at end-sept 2015 7.2 10.5 12.2 10.8 5.6 4.6 9.4 12.8 14.2 12.5 10.0 Others 3% Specialised vessels 4% Newbuild jackups 19% S$10.0b Newbuild semis 46% 3.4 FPSOs/FLNGs 28% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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
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
Expanding Suite of Solutions Inspection, Maintenance & Repair, Support and Decommissioning Subsea Support Next-Generation Drilling 12
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
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 % 30 25 20 15 10 5 0 5-year Return on Shareholder Funds Keppel Land amongst the highest at 18.8% * Company that is listed in Hong Kong. 14
Property Portfolio Residential Launch-Ready Homes (units) Commercial GFA Under Development (sm) 1,026 926 16,590 2,150 53,100 843,757 110,600 2,564 147,657 156,400 9,924 376,000 (4Q15 - FY17) China Vietnam Indonesia Singapore Others China Philippines Indonesia Vietnam Myanmar * As at end-sept 2015 15
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
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 FINANCIAL HIGHLIGHTS
Key Figures S$m FY14 FY13 % Chg 9M15 9M14 % Chg Revenue 13,283 12,380 7 7,817 9,358 (16) Operating Profit 2,373 2,134 11 1,183 1,447 (18) Net Profit 1,885 1,846 2 1,120 1,159 (3) EPS 103.8cts 102.3cts 2 61.7cts 63.9cts (3) EVA 1,778 1,142 56 456 1,032 (56) Free Cash Flow 746 642 16 (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 - 0.52x 0.19x Increase of 0.33x 19
Revenue by Segments S$m FY14 % FY13 % 9M15 % 9M14 % Offshore & Marine 8,556 64 7,126 58 4,918 63 6,180 66 Property 1,729 13 1,768 14 1,245 16 896 10 Infrastructure 2,934 22 3,459 28 1,594 20 2,259 24 Investments 64 1 27-60 1 23 - Total 13,283 100 12,380 100 7,817 100 9,358 100 20
Net Profit by Segments S$m FY14 % FY13 % 9M15 % 9M14 % Offshore & Marine 1,040 55 945 51 542 48 753 65 Property 482 26 832 45 333 30 221 19 Infrastructure 320 17 15 1 160 14 105 9 Investments 43 2 54 3 85 8 80 7 Total 1,885 100 1,846 100 1,120 100 1,159 100 21
Net Profit & EPS Net profit (S$m) 2,237 EPS (Cents) 124.8 1,946 1,540 1,591 844 246 636 296 406 305 726 352 384 272 298 312 619 346 521 751 1,846 1,885 4Q 685 726 3Q 457 414 2Q 347 406 357 1Q 339 1,120 3Q 363 2Q 397 1Q 360 109.4 87.9 90.4 14.0 47.4 36.1 16.9 17.3 22.8 41.5 20.0 21.6 15.5 17.0 17.6 34.5 19.3 29.1 41.9 102.3 103.8 4Q 38.0 39.9 61.7 3Q 3Q 25.3 22.9 20.0 2Q 2Q 19.2 22.3 21.9 1Q 1Q 19.8 18.7 19.8 22
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% 34.6 38.2 43.0 45.0 19.5% 18.8% 40.0 48.0 13.1% 17.0 18.0 13.6 14.5 12.0 12.0 10.0 2009 2010 2011 2012 2013 2014 2015 ROE Interim Dividend Full-Year Dividend 23
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.