1H 2022 Financial Results Webcast & Q&A Session

On Slide 8, for the potential S$200 billion in assets under management (AUM), what is the timeline that Keppel Corporation is hoping to achieve that?

LCH

There is no timeline that we are giving. We are just showing that based on our asset-light model and our monetisation plans, we can potentially grow Keppel Capital to S$200 billion of AUM. The time taken will of course depend on market conditions, but I think this is an achievable and quite a realistic potential AUM for Keppel Capital. Can you also talk about the asset classes and geographies of the additional potential AUM?

LCH

I will ask Christina to address this.

CT

Thanks, Xuan. With regards to the asset classes and geographies, we will focus on what Keppel is strong at in the areas of energy and environment, providing clean energy, clean water. We will also focus on areas in connectivity, which are our data centres and our subsea cables; of course, not forgetting urban development solutions. In terms of geography and asset classes, Keppel has shown its capabilities and strengths, and our investors like Keppel Group because of our capabilities as a developer, operator and manager. We are very confident that we will be able to continue to grow our AUM with the support of all our sister business units realising the potential for us. Thank you.

Could you provide us more insight into the China real estate projects? How much have the average selling prices (ASPs) and sales fallen for the China projects?

LCH

I will ask Louis to address this.

LL

Thank you for the question, Terence. As CEO mentioned in his speech, we are clearly facing headwinds in China as a result of the deleveraging policies as well as the COVID situation. The impact on sales has been significant. For the largest developers across the market, we have seen a 50% drop in units sold. For Keppel Land in China, we have also seen about a two-third drop from 1,550 units that we sold in the first half of last year to 480 units for the first half of this year. In terms of the selling prices, because we are in some of the key markets like Shanghai and Wuxi, the secondary market pricing is quite strong. The government sets limits on pricing, so we have not seen a significant drop in prices for those particular cities and micro markets that we are in. We maintain a very positive view on the medium to long-term prospect for the Chinese market. In the meantime, we will continue to see headwinds, but that said, over the last month in June, if you look at the high frequency data, it has improved significantly with an increase in sales of about 61% versus the previous month. For Keppel Land China as well, we saw a very good recovery in our project in Wuxi – Seasons Residences, and the month of June saw Keppel Land having the highest number of units sold for this project year-to-date. Do you foresee any impairments in 2022?