Temasek Investor Presentation - Information as at 1 August 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Temasek Investor
Presentation
Information as at 1 August 2018
Investor
Presentation
Disclaimer
This presentation is current only as at its date and the availability or use of this presentation
subsequent to its date shall not create any implication that there has been no change in our affairs
since the date of this presentation or that the information, statements or opinions contained herein
is current as at any time subsequent to its date.
This presentation is not and does not constitute or form part of, and is not made in connection with,
any offer, invitation or recommendation to sell or issue, or any solicitation of any offer to purchase
or subscribe for, any securities of any entity, and neither this presentation nor anything contained in
it shall form the basis of, or be relied upon in connection with, any contract or investment decision.
This presentation includes forward-looking statements / projections, which are based on current
expectations and forecasts about future events. Such statements / projections involve known /
unknown risks, uncertainties and other factors, which could cause actual results to differ materially
from historical results or those anticipated. Such factors include, among others, the condition of,
and changes in, the local, regional or global economy. We can give no assurance that our
expectations will be attained.
The information contained in this document is intended for information purpose only. We accept no
liability or responsibility whatsoever with respect to the use of this presentation or its contents.
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 2
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.
Overview of
100% Singov Owned Investment Company; Temasek
100% Commercially Operated
Temasek: History & Parentage
• Established in 1974
Purpose • Separate Singapore Government’s (“Singov”) policy making role
from management of commercial assets
• Incorporated under Singapore Companies Act
Set-up & • Professional management team guided by Temasek Board
Mandate • Own and manage assets on commercial basis
• Deliver sustainable value over the long term
• Singov not involved in investment or business decisions
Interactions
• Singov does not guarantee Temasek’s debt
with Singov
• Temasek declares dividends annually to shareholder
One of three Singov investment entities
Temasek GIC Monetary Authority of Singapore
Investment Company Sovereign Wealth Fund Central Bank
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 3
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.
Overview of
Temasek
Predominantly Equities Investor
730 Staff; Offices in 11 Cities
United
Singapore China India Vietnam United States Brazil Mexico
Kingdom
Top 10 Investments (41% of S$308b Portfolio)
Listed / 52% stake Listed / 29% stake Listed / 4% stake Unlisted / 100% stake Unlisted / 100% stake
Unlisted / 100% stake Listed / 1% stake Unlisted / 25% stake Listed / 2% stake Listed / 56% stake
(as at 31 Mar 18)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 4
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.
Overview of
Temasek
Temasek’s Investment Approach
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 5
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.
Overview of
Temasek
Guided by Investment Themes
Companies that are proxies to transforming economies like
Transforming
China, India, South East Asia and Latin America,
Economies
e.g. financial services, infrastructure & logistics
Companies that meet needs of
Growing
growing middle income populations,
Middle Income
e.g. telecommunications, media & technology,
Populations
and consumer & real estate
Deepening Companies with distinctive intellectual property
Comparative
Advantages and other competitive advantages
Companies with strong home base,
Emerging
Champions or at inflexion points,
with potential to be regional or global champions
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 6
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.
Overview of
Identifying and Capitalising Temasek
on Cross Sectoral Trends
Better, Smarter & More Connected World
Longer Lifespans Smarter Systems
Markets and industries are Artificial intelligence and
developing to meet growing robotics are enabling
needs as we live longer groundbreaking capabilities
Rising Affluence More Connected World
The combination of rising Digital connectivity and solutions
affluence and technology is are redefining how we
redefining consumption patterns communicate and
and attitudes in emerging markets interact around the world
Sharing Economy
Sustainable Living Peer-to-peer networks are
Increasingly eco-conscious solutions promoting more efficient use of
will create up to US$12 trillion1 of resources and greater
business opportunities by 2030 convenience for businesses
and consumers
1 Source: Business and Sustainable Development Commission, Better Business, Better World, January 2017.
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 7
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Overview of
Temasek
Bottom-up Intrinsic Value Investor
Delivering Sustainable Risk-adjusted Returns Over The Long Term
1 2 3
Target’s
Expected
risk-adjusted
Fundamental returns
cost of capital
understanding incorporating
factoring in
of companies our view of
country and
intrinsic values
sector risks
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 8
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Overview of
Temasek
Relating to Our Portfolio Companies
Temasek’s Governance Model
as an Engaged Shareholder
Hold boards and management
Do not direct business decisions or
accountable for activities
operations of portfolio companies
of portfolio companies
Do not guarantee obligations of Support formation of high calibre,
portfolio companies experienced and diverse boards
Protect our interests by Advocate that boards be
exercising shareholder rights independent of management
Expect portfolio companies to comply with
obligations under laws and regulations
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 9
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Portfolio
Portfolio of S$308b (US$235b) as at 31 Mar 2018
308
273
228
1 2 3
3 3
Net Portfolio Value Shareholder equity Shareholder equity excluding mark to market movement4
1 Incorporation of Temasek on 25 June 1974.
2 Financial year 75 began on 25 June 1974 and ended on 31 December 1975.
3 Financial year-end was changed from 31 December before 1993 to 31 March from 1994 onwards.
4 For the financial year ended 31 March 2006, the accounting standards require sub-20% investments to be marked to market.
(as at 31 Mar)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 10
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Portfolio
Asia Weighted Portfolio at 68%
Portfolio by underlying assets (%)
21
7
27 Top 3 Countries %
9
By Singapore 27
13 Geography
China 26
15 26 The US 13
Singapore Mature economies: 60%
Comprises Singapore, Japan & Korea,
China North America, Europe, Australia & New Zealand.
Rest of Asia
Growth regions: 40%
North America Comprises Asia (excluding Singapore, Japan & Korea),
Europe Latin America, Africa, Central Asia & the Middle East.
Australia & New Zealand
Africa, Central Asia & the Middle East
Latin America (as at 31 Mar 18)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 11
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Portfolio
Many Quality Companies within each Sector
Portfolio by underlying assets (%)
Financial Services
4
8 Telecommunications,
3 26 Media & Technology
6
Consumer &
By Sector Real Estate
16
Transportation &
21 Industrials
16
Life Sciences &
Agribusiness
Multi-sector Funds
Others (including Credit) Energy &
Resources
(as at 31 Mar 18)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 12
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Portfolio
Liquid Portfolio,
Mostly Denominated in Singapore Dollars
Portfolio (%)
22 7
36 12
39 By
By
Currency of
Liquidity 53
Denomination
24
10
15
Singapore dollars
Liquid & sub-20% listed assets1 US dollars
Listed large blocs (≥20% andPerformance
Robust Long Term Returns to Shareholder
15% compounded annualised S$ return to shareholder since inception
Period (in years) TSR1 in S$ (%)
Since Inception (1974) 15
30 13
20 7
10 5
1 12
Rolling S$ TSR1 (%)
43
14
16 15 15 9 19
17 13 13 13 12
6 9 6
10 6 6 9 6 7
7 10 9 6 5
5 1 2 7 4
(9)
Global
(30) Financial Crisis
08 09 10 11 12 13 14 15 16 17 18
1 Total Shareholder Return One-year 10-year 20-year (as at 31 Mar 18)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 14
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Performance
Active Investor with S$13b Net Investment
Invested
S$29b
Divested
S$16b
Brazil
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 15
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Public
Markers
Public Markers for Institutional Discipline
• Credit quality
• Long term financial discipline
• Expanded stakeholder base
Public Marker Function Indicator
Temasek Review Performance Portfolio strategy and
scoreboard performance
Credit Profile Snapshot of Credit ratios and
credit quality key financial parameters
Temasek Bonds Singing canaries Real time market signals
in coal mines of changes in
Temasek’s credit
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 16
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Public
Markers
Credit Profile – Snapshot of Credit Quality
Key Temasek Credit Ratios1 (for years ended 31 Mar)
Dividend Income over Liquidity Balance2 over Net Portfolio Value over
Interest Expense (x) Total Debt due in Total Debt (x)
next 10 Years (x)
24 24
21
19
18 19
5 4
3
16 17 18 16 17 18 16 17 18
Credit Ratings by S&P and Moody’s
• Rated AAA/Aaa by S&P and Moody’s respectively since inaugural ratings in 2004
1 Covers Temasek Holdings (Private) Limited and its wholly owned Investment Holding Companies
2 Cash and cash equivalents, and short term investments
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 17
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Public
Markers
Sources and Uses of Funds
Investments Dividends Taxes Community
and Associated Costs to Shareholder Initiatives
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 18
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Public
S$12.8b (US$9.8b) Debt Outstanding Markers
under MTN & ECP Programmes
Temasek Bonds: Temasek ECP:
• US$20b Guaranteed Global Medium Term Note (MTN) • US$5b Euro-commercial Paper (ECP)
Programme, rated AAA/Aaa Programme, rated A-1+/P-1
• 14 AAA/Aaa Temasek Bonds, totalling S$11.4b (US$8.7b)1 • S$1.4b (US$1.1b)1 ECP outstanding
• Weighted average maturity of over 11 years • Weighted average maturity of about
• 1 Aug 2018: Issued 10-year US$1.35b bond at 3.625% two months
(1Exchange rates and all figures as at 31 Mar 18)
The copyright in this material is owned by Temasek unless otherwise indicated. This material may not be modified, reproduced, 19
distributed, republished or transmitted in whole or in part in any manner or by any means without prior permission of Temasek.Thank You
www.temasek.com.sg
www.temasekreview.com.sgYou can also read
