Annual General Meeting
Presentation by
Mr Loh Chin Hua, CEO 19 April 2024
Transformed for growth
Delivered on strategy with strong shareholder returns.
2023: One of the most transformational years in Keppel's history
Total shareholder
Divested O&M business
Unlocking $9.4bi in value for shareholders over time
Accelerating growth | Renamed Keppel Ltd. |
Announced strategic acquisition of | Started operating as one |
leading European real estate | horizontally-integrated |
manager, Aermont Capital | company |
returns
Keppel:
Keppel: 61.1%
49.3%
Feb 2023 | May 2023 | Nov 2023 | Dec 2023 | Jan 2024 | |
Embarked on | Exceeded asset | ||||
major transformation | monetisation target | ||||
Shed conglomerate structure and | $5.4b announced | ||||
advanced growth as a global asset | since Oct 2020, of which | ||||
manager and operator | $950m was in 2023 |
i As announced in the Company's 1Q23 business update.
STI:STI:
8.3% 4.7%
2022 2023
Source: Bloomberg | 2 |
Highest profit on record
Net Profit
Recurring Income
$4.1b |
$4.1b
Achieved highest profit on record in FY23, more than quadruple that of FY22
$773m
$503m
687
+54% yoy
Reflecting Keppel's strategy, and our shift away from lumpy EPC and development profits
$927m | |
FY22 | FY23 |
37.9%
ROE for FY23, compared to 8.1% for FY22
412
9186
FY22 FY23
Asset Mgmt Income
Operating Income
88%
Of net profit from continuing operations was recurring in FY23, vs 60% in FY22, underpinned by strong infrastructure earnings
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Rewarding shareholders
FY23 dividends
$2.19i/share
DIS of
SCM shares
$0.15/share
1H23 interim cash dividend
$0.167/share
DIS of
KREIT units
$0.19/share
FY23 final
cash dividend
~$2.70/share
Total
i The figure of $2.19 is rounded to the nearest two decimal places; calculated based on a division of (a) the cash equivalent amount of the dividend declared by the Company | 4 |
of $3,845,164,646.11, by (b) the Company's issued and paid-up share capital as at the Record Date of 1,751,959,918 Keppel Shares (excluding treasury shares). |
Accelerating growth in asset management
Laser-focused to scale FUM to $100b by end-2026 and $200b by end-2030
Funds Under Managementi
+153% | $200b | |
+58% | $79b | |
$50b |
As at end-2022 Pro Forma as at 2030 Target end-2023ii
Driving organic growth
18 | 4 | >$14b |
Private funds/SMAs | New funds being | Deal flow pipeline |
across infrastructure, real | planned for launch | |
estate and connectivity |
Capturing inorganic opportunities
Exploring opportunities to acquire synergistic platforms in other areas such as infrastructure and connectivity
i Gross asset value of investments and uninvested capital commitments on a leveraged basis to project fully-invested FUM. | 5 |
ii Assumes that the acquisition of the first 50% stake in Aermont Capital was completed on 31 Dec 2023. |
Note: Data as at end-2023.
Strong interest in Keppel's real assets
Increase in fundraising and dealmaking activities expected as inflation eases and interest rates stabilise in 2024.
Infrastructure | Real estate | Connectivity |
Keppel Sakra Cogen Plant
- Global energy transition and climate action driving demand for Keppel's renewables, clean energy, decarbonisation and environmental solutions
- Developing Singapore's first hydrogen-ready and most advanced power plant
Keppel South Central
- Pressing need to decarbonise real estate driving demand for more sustainable solutions
- Incorporating differentiated Sustainable Urban Renewal solutions as part of new assets and asset enhancement initiatives strategy
DataPark+
- Growing demand for more efficient and greener data centres amidst proliferation of Generative AI
- Creating modular data centre campus among other leading edge solutions that harness cleaner energy sources
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Strategic acquisition of leading European asset manager
Acquisition of initial 50% stake in Aermont to be completed in 1H24
Immediate, significant foothold in Europe
Expands asset mgmt capabilities beyond Asia Pacific, bolstering Keppel's presence and value proposition to global LPs
Expanding network of blue-chip LPs
Through Aermont's longstanding relationships with over 50 global clients, many of whom are new to Keppel
Deepening talent pool
Experienced senior team with extensive track record and networks in Europe
Accelerating FUMi growth
$60b$200b
Potential to further grow
Aermont's FUM by up to 2.5x
$79b |
$24b |
Aermont FUM |
Pro Forma as at | 2030 |
end-2023ii | Target |
i Gross asset value of investments and uninvested capital commitments on a leveraged basis to project fully-invested FUM. | 7 |
ii Assumes that the acquisition of the first 50% stake in Aermont Capital was completed on 31 Dec 2023. |
Conclusion
- Harnessed Keppel's deep industrial roots to transform the Company into a global asset manager and operator
- Providing unparalleled value proposition to investors with our strong investment track record, operating capabilities and domain knowledge
- Investors find Keppel's active value adding approach to creating superior returns appealing
- Sharpened our focus on sustainability
- Keppel's shareholders have benefited and will continue to benefit from our transformation
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Disclaimer
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS PRESENTATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL, SUBSCRIBE FOR OR BUY SECURITIES IN ANY JURISDICTION, INCLUDING IN THE UNITED STATES.
This presentation is for information purposes only and does not have regard to your specific investment objectives, financial situation or your particular needs. Any information in this presentation is not to be construed as investment or financial advice and does not constitute an invitation, offer or solicitation of any offer to acquire, purchase or subscribe for securities or other financial instruments in Keppel Ltd. ("Keppel"). The past performance of Keppel is not indicative of the future performance of Keppel. You should exercise judgment in your own financial decisions. If in doubt, please consult with your professional advisers.
Unless explicitly indicated otherwise, all monetary values denoted as '$' within this presentation are to be interpreted as referring to Singapore dollars.
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Keppel Corporation Ltd. published this content on 19 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2024 13:42:09 UTC.