Keppel Corporation AGM 2023 Presentation Slides

Keppel Corporation AGM 2023 Presentation Slides

• 1.
  Annual General Meeting Presentation by MrLoh Chin Hua, CEO 21 April 2023
• 2.
  2022: A transformationaland productive year 2 S$262m S$560m FY21 FY22 114% Recurring income i The recurring income in FY21 has been restated as Keppel O&M's income is classified as discontinued operations S$560m Representing 67% of FY22 net profit, excluding discontinued operations i Net profit S$927m Robust performance in FY22, bolstered by strong results in Asset Management and Energy & Environment Recurring income
• 3.
  3 Advancing our asset-lightstrategy >S$4.9bi Reached target of S$3-S$5b ahead of schedule; will soon announce a new interim monetisation target i Since the start of asset monetisation programme in Oct 2020; does not include the realisable value from the O&M transactions S$2.8b Investments across energy & environment and sustainable urban renewal undertaken by Keppel with private funds and/or business trust managed by Keppel Capital in 2022 Asset monetisation Joint investments Assets under management Target: S$200b Current: S$50b By 2030 At end-2022
• 4.
  Realising S$9.4bi invalue from the O&M transactions ~S$3.3bii Disposal gain from Keppel O&M-Sembcorp Marine merger recognised in 1Q23 S$500m Cash received in 1Q23 S$2.19/Keppel shareiv Value of Sembcorp Marine shares distributed in specie to shareholders S$2.50/Keppel shareiii Value of investment in Asset Co, comprising S$4.25b in vendor notes, S$120m in perpetual securities and a 10% equity stake Rewarding shareholders 33.0 cts/share FY22 total cash dividend includes proposed final cash dividend of 18.0 cts/share Refer to Slide 9 for footnote i, ii, iii and iv 4
• 5.
  5 Creating value forshareholders (S$263m) S$157m (S$768m) (S$160m) S$142m FY18 FY19 FY20 FY21 FY22 S$170m Improved earnings quality Replaced volatile earnings from O&M business with stable interest income from Asset Co vendor notes O&M business recorded average lossi of S$178m p.a. over past 5 years Annual income from S$4.25b in vendor notes at 4% p.a. coupon rate Additional 5% premium upon redemption Total shareholder return STI: 8.4% STI: 9.2% Keppel: 49.3% Keppel: 77.7% 12 months 15 months Significantly outperformed Straits Times Index over 12-mth and 15-mth periods (Jan - Dec 2022) (Jan 2022 - Mar 2023) i Does not include effects of out-of-scope assets as well as intercompany loan interest expense and fee charges.
• 6.
  The future ofKeppel Moving forward, Keppel will work towards becoming A GLOBAL ASSET MANAGER & OPERATOR with strong development and operating capabilities in: 3 Connectivity 2 Urban Development 1 Energy & Environment 6 FOCUS AREAS Renewables Clean energy Decarbonisation solutions Sustainable urban renewal Connectivity
• 7.
  Running our businesssustainably and making sustainability our business 7 Keppel Infrastructure @ Changi is Singapore’s first Green Mark Platinum Positive Energy building under the new and more stringent Green Mark Scheme Keppel will invest in and create sustainability solutions that can help our customers and other stakeholders on their progress towards Net Zero.
• 8.
  8 Conclusion Keppel is inthe right space, at the right time. We will continue to execute Vision 2030 and create value for all our stakeholders.
• 9.
  9 Notes to Slide4 i. Includes out-of-scope assets with a carrying value of ~S$300m and 5% of Sembcorp Marine shares retained in the segregated account. ii.The gain on disposal is subject to adjustment for any reimbursement by the Company to Keppel O&M for certain expenditures incurred by Keppel O&M before the completion of the combination, relating to assets sold by Keppel O&M to Asset Co to the extent that such expenditures are in excess of an agreed sum. iii.Based on the Company’s issued and paid-up share capital as at the date of Closing of 1,751,959,918 shares (excluding treasury shares). iv.The figure of S$2.19 is rounded to the nearest two decimal places; calculated based on a division of (i) the cash equivalent amount of the dividend declared by the Company of S$3,845,164,646.11, by (ii) the Company's issued and paid-up share capital as at the Record Date of 1,751,959,918 KCL Shares (excluding treasury shares).
• 10.
  10 Disclaimer 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 Corporation Limited (“Keppel”). 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.