Keppel : Presentation slides for Annual General Meeting 2023

Annual General Meeting

Presentation by

Mr Loh Chin Hua, CEO 21 April 2023

2022: A transformational and productive year

Net profit

S$927m

Robust performance in FY22, bolstered by strong results in Asset Management and Energy & Environment

Recurring income

S$560m

Representing 67% of FY22 net profit, excluding discontinued operations

Recurring income

	S$560m
114%
S$262m
FY21i	FY22

i The recurring income in FY21 has been restated as Keppel O&M's income is classified as discontinued operations

2

Advancing our asset-light strategy

Asset monetisation

>S$4.9bi

Reached target of S$3-S$5b ahead of schedule; will soon announce a new interim monetisation target

Joint investments

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

Assets under management

Current:	Target:
S$50b	S$200b
At end-2022	By 2030

i Since the start of asset monetisation programme in Oct 2020; does not include the realisable value from the O&M transactions

3

Realising S$9.4bi in value from the O&M transactions

~S$3.3bii	S$500m
Disposal gain from Keppel	Cash received in
O&M-Sembcorp Marine	1Q23
merger recognised in 1Q23

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

Refer to Slide 9 for footnote i, ii, iii and iv

Rewarding shareholders

S$2.19/Keppel shareiv

Value of Sembcorp Marine shares distributed in specie to shareholders

33.0 cts/share

FY22 total cash dividend includes proposed final cash dividend of 18.0 cts/share

4

Creating value for shareholders

Total shareholder return

Significantly outperformed Straits Times Index over 12-mth and 15-mth periods

Improved earnings quality

Replaced volatile earnings from O&M business with stable interest income from Asset Co vendor notes

	Keppel:
Keppel:	77.7%
49.3%
STI:	STI:
8.4%	9.2%
12 months	15 months
(Jan - Dec	(Jan 2022 -
2022)	Mar 2023)

O&M business recorded average lossi of S$178m p.a. over past 5 years

S$157mS$142m

(S$263m)	(S$160m)

(S$768m)

FY18 FY19 FY20 FY21 FY22

S$170m

Annual income from

S$4.25b in vendor notes at 4% p.a. coupon rate

Additional 5% premium upon redemption

i Does not include effects of out-of-scope assets as well as intercompany loan interest expense and fee charges. 5