1Q 2019 Financial Results 18 April 2019 Scope of Briefing Address - PowerPoint PPT Presentation

1Q 2019 Financial Results 18 April 2019

Scope of Briefing • Address by CEO • Group Financial Highlights by CFO 2

Address by CEO 3

Financial Performance Key ey high ghlights Net profit • Annualised ROE was 7.0% 337 S$1,5 S$1 ,531m • Free cash outflow of S$617m in 26 1Q 2019 vs inflow of S$248m in 1Q 2018 1Q 2019 revenue up 4% from S$1,470m for 1Q 2018 203 • Net gearing was 0.72x as at S$m 378 49 end-Mar 2019 vs 0.48x as at S$2 S$203m end-Dec 2018 16 132 6 1Q 2019 net profit down 40% yoy. 1Q 2018 0 (23) benefitted from a S$289m gain from the sale of (44) Keppel Cove in Zhongshan, China 1Q 2018 1Q 2019 Offshore & Marine Property Infrastructure Investments 4

Offshore & Marine Following the success of Hilli Episeyo (in picture), Final Notice to Proceed was received for the conversion of the Gimi FLNG

Offshore & Marine Key highlights Net profit • 1Q 2019 net profit mainly due to improved results from associates, S$6m 6 and lower taxes • YTD new contracts of about S$1b 10 S$m 1Q 2019 net profit compared to 1Q 2018 net loss • of S$23m A mid-water harsh environment 5 semi from Awilco Drilling worth 0 US$425m (9) (11) • Integration and upgrading S$3m works worth ~S$160m • Received Final Notice to Proceed (10) for Gimi FLNG, with incremental Maintained operating profitability for 1Q 2019 value of US$242m (2) (23) • Submitted bid for 2 semis being 1Q 2018 1Q 2019 built for Sete Brasil i New Builds Repairs & Conversions Associates i Includes contributions from Floatel, Blue Tern, Dyna-Mac, etc. 6

Offshore & Marine • Delivered 2 projects namely: Net orderbook i • Cantarell IV to Grupo R on a 4.7 sale & leaseback deal 4.3 0.3 0.3 • World’s first EU stage V 0.9 dredger to Jan De Nul 0.9 • Collaborating with MPA and S$b 2.0 TCOMS to develop an 2.1 Our RigCare Solution leverages AI, autonomous tug for operations IoT and digital twins to optimise in Singapore 1.1 Cantarell IV’s performance 0.5 0.5 0.4 throughout its lifecycle • Partnering M1 for the test bedding 0 End-2018 End-Mar 2019 of Maritime Autonomous Surface Ships, leveraging M1’s network Newbuild jackups Newbuild semis FPSOs/FLNGs Specialised vessels connectivity ii Others i Excludes semis for Sete ii Includes modification, upgrading, fabrication and rig repairs 7

Property Phase 1 of the newly- launched project in Nanjing, China, was fully sold in April 2019

Property Net profit • Deepened collaboration with Nam Long (NLG) with the 378 divestment of 70% stake in 14 Dong Nai Waterfront City in 4 Vietnam to NLG for a total consideration of S$136m S$m • Keppel Land China partnered 1Q 2019 net profit down 65% yoy 365 AAMTF i III to acquire Yi Fang 132 9 1Q 2018 net profit benefitted from a gain of Tower, a prime commercial S$289m from the sale of Keppel Cove in 39 building in Shanghai Zhongshan, China 90 0 (5) (6) 1Q 2018 1Q 2019 Property trading Property investment Hotels/Resorts REIT i Alpha Asia Macro Trends Fund 9

Property Home sales 390 60 Residential landbank of about Commercial portfolio of about 48,000 units 1.6 million sm of GFA 300 20 50 60 30 50 • Sold ~390 units in 1Q 2019, with • 50% of commercial GFA under total sales value of ~S$230m development • Sale of 7,790 overseas units worth • Total commercial portfolio can 230 190 ~S$2.4b recognisable from generate annual net operating 2Q 2019-2021 income of ~S$300m when fully developed and stabilised • ~17,000 units launch-ready from 1Q 2018 1Q 2019 2Q 2019-2021 China Vietnam Singapore Indonesia India 10

Infrastructure Keppel Electric is one of the largest OEM electricity retailers in Singapore

Infrastructure Net Profit • Keppel Electric secured over 26 100,000 household customers in Singapore to date 6 16 • KMEDP i over 80% completed 4 • Keppel Gas completed its first S$m 24 LNG cargo import from 19 1Q 2019 net profit down 38% yoy North America Mainly due to share of Keppel Infrastructure • Broke ground for IndoKeppel Trust’s cost for the acquisition of Ixom 0 DC 1 in Bogor, Indonesia (4) (7) 1Q 2018 1Q 2019 Keppel Infrastructure Data Centres Logistics & Others i Keppel Marina East Desalination Plant 12

Investments Ixom’s facilities in Port Kembla, Australia

Investments • Net profit for Keppel Capital Net Profit more than doubled to S$23m 49 for 1Q 2019 • Keppel Capital subscribed for 30% S$m 83 interest in Gimi MS Corporation 5 9 • KIT completed the A$1.1b 9 23 1Q 2019 net profit of S$49m acquisition of Ixom, a leading 0 industrial infrastructure company Mainly due to improved earnings from (40) (46) Keppel Capital and re-measurement gain of in Australia and New Zealand (8) (7) previously held interest in M1 (4) (19) (44) • Acquired minority stake in leading 1Q 2018 1Q 2019 EV battery business Envision AESC Group ii i Share of associated companies’ results Keppel Capital M1 KrisEnergy i i SSTEC Others Impairment of an Yi Fang Tower in Shanghai, China ii Prior to March 2019, M1 relates to the share of associated company associated companies’ results 14

Update on M1’s Transformation Redefining consumer product offerings Redesigning customer experience Strategic Increasing focus on Enterprise segment transformation Improving operational efficiency Exploring future growth platforms M1’s 2.2 million subscribers Building on the complementarity of consumer offerings in City Gas’ 800,000 household consumers connectivity and energy Keppel Electric’s 100,000 retail customers Harnessing Smart city applications with Keppel Urban Solutions synergies with Enhancing solutions Optimising resources and utilities the Group through IoT Harnessing data for master Leveraging data development and retail properties in analytics Singapore and overseas 15

Our Eco-System of Companies Keppel T&T M1 Keppel O&M Keppel Land Keppel SSTEC Infrastructure Keppel Keppel Logistics Data Centres Keppel Capital Keppel Urban Solutions Keppel Technology & Innovation 16

Group ROE Target 15% Target 2018 Business Units ROE ROE ROE target for Keppel Corporation Keppel Offshore & Marine 15% n.m. Keppel Land 12% 11.4% Keppel Infrastructure 15% 17.2% 17.7% Keppel Data Centres 18% 12.6% i Annual average ROE over the Keppel Logistics 12% n.m. past decade (2009-2018) Keppel Capital 20% 25.4% Keppel Urban Solutions 15% - M1 25% 25.8% i Excludes dilution gain from placement of Keppel DC REIT units and gain from sale of a stake in Keppel DC REIT 17

The building blocks of our transformation are in place. We are focused on executing and delivering on our growth initiatives.

Group Financial Highlights by CFO 19

1Q 2019 Financial Performance Key highlights S$m 1Q 2019 1Q 2018 % Change Revenue 1,531 1,470 4 Net t Prof ofit it 40% from net profit of ↑ S$337m to S$203m EBITDA 389 532 (27) ROE from 11.4 .4% % to 7.0 .0% ↑ (Annuali lised) Operating Profit 322 486 (34) Profit Before Tax 283 448 (37) Free Cash from inflow of S$248m ↑ to outflow of S$617m Flow ow Net Profit 203 337 (40) ↑ Net t Gearin ing from 0.4 .48x to 0.7 .72x EPS (cents) 11.2 18.6 (40) 20

1Q 2019 Revenue by Segment S$m 1Q 2019 % 1Q 2018 % % Change Offshore & Marine 332 22 332 23 - Property 357 23 543 37 (34) Infrastructure 699 46 564 38 24 Investments 143 9 31 2 361 Total 1,531 100 1,470 100 4 21

1Q 2019 Pre-tax Profit by Segment S$m 1Q 2019 % 1Q 2018 % % Change Offshore & Marine 1 - (15) (3) n.m. Property 181 64 473 105 (62) Infrastructure 20 7 30 7 (33) Investments 92 33 (40) (9) n.m. Less: Charges related to the (11) (4) - - n.m. acquisition of M1* Total 283 100 448 100 (37) * Charges included amortisation of intangibles, funding costs and professional fees 22

1Q 2019 Net Profit by Segment S$m 1Q 2019 % 1Q 2018 % % Change Offshore & Marine 6 3 (23) (7) n.m. Property 132 65 378 112 (65) Infrastructure 16 8 26 8 (38) Investments 59 29 (44) (13) n.m. Less: Charges related to the (10) (5) - - n.m. acquisition of M1* Total 203 100 337 100 (40) * Charges included amortisation of intangibles, funding costs and professional fees 23

Net Profit & EPS Net profit (S$m) EPS (Cents) 1,885 103.8 1,525 84.0 726 39.9 405 22.3 944 52.0 414 363 815 22.9 784 20.0 44.8 135 43.2 7.4 127 6.9 143 226 7.9 12.4 397 265 406 21.9 14.6 225 22.3 12.4 246 13.6 171 205 203 9.4 11.2 11.3 360 339 337 19.8 18.7 18.6 252 211 203 13.9 11.6 11.2 i i 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q i Excludes one-off financial penalty from global resolution & related costs 24

Free Cash Flow S$m 1Q 2019 1Q 2018 Operating profit 322 486 Depreciation & other non-cash items (148) (306) 174 180 Working capital changes (759) (128) Interest & tax paid (89) (62) Net cash used in operating activities (674) (10) Investments & capex (26) (35) Divestments & dividend income 46 504 Advances to associated companies 37 (211) Net cash from investing activities 57 258 Cash (outflow)/inflow (617) 248 Free cash flow excludes expansionary acquisitions and capex, and major divestments. 25

Questions & Answers 26