1Q 2024 Business Update Media & Analysts Conference Call

Good morning, analysts and friends from the media. We have issued our media release and slides for our 1Q 2024 voluntary business update, which we will take as read. Let me highlight a few key points before we take questions. We have started the year on a good footing, making commendable progress in line with our transformation goals. Our 1Q 2024 net profit1 was higher year-on-year (yoy), excluding the effects of the legacy offshore and marine (O&M) assets, bolstered by stronger performance in the Infrastructure and Connectivity segments. The effects of the legacy O&M assets include the fair value changes of the Seatrium shares held in our segregated account, the financing cost relating to the Vendor Notes as well as contributions from Keppel’s stakes in Floatel and Dyna-Mac. Including the effects of the legacy O&M assets, net profit for 1Q 2024 was lower yoy. In line with our efforts to build Keppel into a leading global asset manager and operator, our asset management fees2 rose 52% yoy to S$88 million in 1Q 2024. Improved contributions from asset management, together with strong operating income growth, resulted in a 51% surge in Keppel’s recurring income yoy. We have also continued to progress in our asset-light strategy and de-risking of investments. In the year to date, we have received S$71.3 million in cash from Asset Co, and are working on the completion of the divestment of one of our landbanks in Wuxi, China for S$161.6 million3. 1 1Q 2023 net profit refers to that of continuing operations. 2 Includes 100% fees from subsidiary managers, joint ventures and associated entities, as well as share of fees based on shareholding stake in associate with which Keppel has strategic alliance. 3 Proposed divestment is subject to completion/relevant approvals. Since October 2020, our asset monetisation has reached over S$5.5 billion. We remain focused on achieving our interim target of S$10 – S$12 billion by the end of 2026. As at 31 March 2024, about 64% of our borrowings were on fixed rates, with a competitive average cost of funds of 3.81% and a weighted tenor of about 3 years4. Our net gearing remained at 0.90x, unchanged from 31 December 2023. In our Fund Management and Investment platforms, we raised about S$436 million in equity in the year to date, and completed about S$1.1 billion in acquisitions and divestments. In April 2024, we achieved the first close for our flagship Keppel Sustainable Urban Renewal Fund (KSURF), bringing the total Funds Under Management5 (FUM) in our Sustainable Urban Renewal Strategy to over US$1.7 billion. We are also receiving good investor interest for another flagship product, the Keppel Core Infrastructure Fund (KCIF), which made its first close at US$575 million in October 2023. We will continue to drive organic growth as we work with laser-focus towards our S$200 billion FUM target by end-2030. Keppel currently has a portfolio of 19 active private funds and we plan to launch another three new funds for data centres, education assets and private credit later this year. Across our private funds and listed vehicles, we have identified a deal flow pipeline of over S$14 billion, which we will continue to actively pursue and actualise. Most of these potential deals are in the infrastructure and connectivity spaces, where we see exciting growth opportunities. Just last month, we announced a partnership with Mitsui Fudosan, which will see us jointly exploring data centre development and investment opportunities in Japan and Southeast Asia. On the acquisition of Aermont Capital, I am pleased to share that we have just secured, last evening, the last clearance required from a European regulator to close Phase 1 of the acquisition. We are now working towards completing Phase 1 by the end of this month. This would grow Keppel’s FUM5 to about S$79 billion, or close to 80% of our interim target of S$100 billion by 2026. I will now touch on some key highlights from our Operating Platform. The 600 MW hydrogen- ready Keppel Sakra Cogen Plant is now over 50% completed and on track to commence operations in 2026. This, coupled with the 1,300 MW Keppel Merlimau Cogen Plant, whose capacity tolling and operations & maintenance agreements have been extended by another decade, will further boost Keppel’s strategic position in the Singapore electricity market. As we continue to pursue opportunities in renewables, clean energy and decarbonisation solutions, we are also expanding the pipeline of long-term contracts that provide stable income 4 Includes perpetual securities. For reference, the SGD 3-year swap rate was 3.07% as at end-March 2024. 5 Gross asset value of investments and uninvested capital commitments on a leveraged basis to project fully-invested FUM. with good earnings visibility. During the quarter, our Infrastructure Division’s long-term decarbonisation and sustainability solutions and services contracts grew by about 12% to S$4.8 billion with revenues to be earned over 10-15 years, building up steady cashflows for the Company. We are similarly working on transforming the Real Estate Division’s earnings to become more asset-light and recurring, with a focus on Sustainable Urban Renewal, or SUR for short. The Division has been growing its SUR capabilities and implementing initiatives for a portfolio of nine projects with a combined asset value of S$7.9 billion6. In the Connectivity space, we continued to make good progress on our data centre projects in Singapore and China. We are also working towards a final investment decision for the floating data centre module in 1H 2024, as well as getting the Bifrost Cable System’s main trunk ready for service by the end of this year. Meanwhile, M1 continues to improve on its revenue. In line with its strategy to grow the enterprise segment, revenue from the enterprise business grew 17% yoy, and contributed some 41% of M1’s total revenue in 1Q 2024. To conclude, we see exciting opportunities ahead as investors’ growing preference for defensive, cashflow generative assets is driving demand for alternative real assets in infrastructure and private credit, where Keppel has strong expertise. Drawing on our deep domain expertise and operating capabilities, we can create alphas for the funds that we manage, reinforce Keppel’s unique value proposition to our global limited partners and also drive stronger returns for Keppel’s shareholders. Let me now open the floor to questions. Question & Answer session