Temasek’s NPV Up by $4.44 Billion for FY2023-24

Temasek, a global investment company with headquarters in Singapore, on Tuesday reported a Net Portfolio Value (NPV) of $288.12 billion for the financial year ended 31 March 2024, up $4.44 billion from a year ago.

Marking its unlisted portfolio to market would provide $22.96 billion of value uplift and bring our Mark to Market (MTM) NPV to $311.08 billion, up $6.67 billion from last year’s MTM NPV. The increase was mainly due to Temasek’s investment returns from the US and India, offset by the underperformance of China’s capital markets

Likewise, Temasek’s unlisted portfolio has grown steadily from 20% in 2004 to 52% as at 31 March 2024. With this increase in exposure, reporting the company’s unlisted assets at mark to market value would be more in line with its peers, Temasek said.

The company’s 20-year and 10-year Total Shareholder Return (TSR) remained stable at 7% and 6%, respectively. Metrics such as our NPV and longer-term 20-year and 10-year TSRs are more indicative of its performance, and are aligned with Temasek’s mandate to generate sustainable returns over the long term.

Resilient Portfolio

Temasek maintained a cautious but steady investment pace amidst global economic uncertainties and has invested $19.26 billion into opportunities in sectors such as technology, financial services, sustainability, consumer, and healthcare, aligned with the four structural trends of Digitisation, Sustainable Living, Future of Consumption, and Longer Lifespans.

Excluding Singapore, the US continued to be the leading destination for Temasek’s capital, followed by India and Europe. It has also stepped up our investment activities in Japan.

The company has divested $24.44 billion for the year and of this, about $7.41 billion was due to the redemption of capital by Singapore Airlines and Pavilion Energy for their mandatory convertible bonds and preferential shares respectively. Overall, the company had a net divestment of $5.18 billion, compared with a net investment of $2.96 billion a year ago.

Temasek continued to maintain a high level of liquidity, ending the year in a net cash position. Its stable longer-term returns continued to be underpinned by the active reshaping of the company’s portfolio which spanned geographies, asset classes, and its focus sectors.

Since 2004, when Temasek set up its first offices in Asia, it benefitted from China exposure in the first decade. In the following decade, Temasek opened offices in New York and London and doubled its exposure to the Americas, and Europe, Middle East, and Africa (EMEA), from 18% in 2014 to 35% in 2024.

Temasek deployed $2.22 billion into investments aligned with the Sustainable Living trend. This comprises sustainability-focused investments and climate transition investments, covering key focus areas such as food, water, waste, energy, materials, clean transportation, and the built environment. It also invested in Electric Vehicle companies Mahindra Electric Automobile in India and BYD in China, sustainable battery solutions provider Ascend Elements in the US, and electrolyser manufacturer Electric Hydrogen in the US. In May 2024, we partnered Brookfield to invest in Neoen, a France-based global renewable energy company.

Decarbonisation Journey

Temasek has set a target to reduce the net carbon emissions attributable to its portfolio to half of its 2010 levels by 2030, with the ambition to achieve net zero by 2050. Total Portfolio Emissions decreased by 6 million tonnes of carbon dioxide equivalent (tCO2e), from 27 million tCO2e a year ago to 21 million tCO2e as at 31 March 2024.

As the company continued stepping up efforts to encourage decarbonisation across its portfolio and to invest in less carbon-intensive businesses, we expect a non-linear decline in the Scope 1 and Scope 2 emissions associated with its investment portfolio over time.

With effect from 1 April 2024, Temasek raised internal carbon price by 30% to $65 per tCO2e, from $50 per tCO2e.