A Publication of Keppel Corporation

ISSUE 03 2020

www.kepcorp.com/ekeppelite

Unveiling A heart Iconic desalination Vision 2030 to serve plant in the city

MCI (P) 060/01/2020 20 16 44 Contents

1 Editor’s Note GETTING TO KNOW YOU Editorial Advisor 2 Keppel Corporation Financial Results Ho Tong Yen Financial highlights 28 Spotlight on: Mr Manjot Singh Mann In conversation 12 Keppel REIT Financial Results 30 Reducing carbon footprint of data Editor Sue-Ann Huang 13 Keppel DC REIT Financial Results centres 14 Keppel Pacific Oak US REIT 31 First sustainability-linked loan in the Financial Results energy sector Copy Editor 15 Lighting up for SG United 32 Keeping it cool Elizabeth Widjaja New Indonesian logistics property 33 The OneKeppel differentiator venture 36 Smart logistics park in Tianjin Eco-City Editorial Team SPECIAL FOCUS Amanda Teng, Ana Luisa Cruz, Ariel Tee, KEPPELITES AROUND THE WORLD Ang Lai Lee, Brian Lee, Dorothy Lim, 16 Unveiling Vision 2030 Emmeline Khoo, Fiona Aw, Frances Teh, 37 Firsthand experience of a dynamic Glenda Yang, Grace Chia, Guo Xiao Rong, 19 Connecting with investors China Hoo Yao Lin, Ivana Chua, Lee Wan Jun, 20 Strengthening our water security Loh Jing Ting, Nikki Lam, Roy Tan, 21 Keppel expands into fast-growing 38 Forging ahead with agility Tang Yi Bing, Vanessa Ng, Victor Heng, Yolanda Guo data centre market in China 40 Supporting Keppelites 22 Sustainability at the core 42 Nurturing talent Email: [email protected] 24 Harnessing technology 43 Continuous learning Website: www.kepcorp.com/ekeppelite in the new normal 44 A heart to serve /keppel: www.linkedin.com/company/keppel 25 New FPSO contracts secured 46 Hot meals and warm hearts Remote survey of offshore rig 47 Empowering lives Keppelite is a publication of Keppel 26 Singapore’s first LNG bunkering 48 Caring for the environment Corporation, and is published quarterly vessel Uplifting communities by the Group Corporate Communications Tianjin Eco-City’s first smart estate Division. All rights reserved. Permission from 27 5G revolution the publisher is required for reproduction by any means in whole or in part.

Cover image: Singapore’s fourth desalination plant, the Keppel Marina East Desalination Plant, commenced commercial operations on 29 June 2020. The large-scale, dual-mode desalination plant is the first of its kind in Singapore, with an innovative design which situates treatment equipment completely underground and features a lush green rooftop for community recreation. 1 EDITOR'S NOTE

Editor’s Note

COVID-19 continues to exert a heavy a provider of solutions for sustainable Keppel continued to actively engage our toll on the global economy. Keppel urbanisation, including achieving several employees, including the many Keppelites Corporation’s performance has also been key milestones in 2Q 2020. The iconic who adapted quickly to working from impacted, mainly due to impairments in Keppel Marina East Desalination Plant home. Virtual townhall sessions, online the offshore and marine business, which (KMEDP), Singapore’s fourth desalination health and wellness workshops, as well as has been severely affected by the plunge plant, commenced commercial operations the distribution of care packs to frontline in global demand for oil and oil prices. in June 2020, and will contribute towards staff and migrant workers, helped keep If we were to exclude the impairments, strengthening Singapore’s water security. ​​ morale high and deepen staff engagement Keppel’s net profit for both 2Q and 1H The KMEDP’s innovative design integrates (pages 40 and 41). 2020 would have increased compared to the plant with surrounding greenery by the equivalent periods last year. situating the treatment facility underground, Keppelites also stepped up to meet making it a beautiful piece of architecture community needs, such as by engaging As we deal with the immediate impact of that the public can enjoy​ (page 20). beneficiaries virtually, delivering care packs COVID-19, Keppel remains focused on Separately, with the final award of the 5G to healthcare workers and donating blood. creating value for all stakeholders over network licence, M1 will start to roll out its 5G Keppel Offshore & Marine (Keppel O&M) the long-term. In May 2020, we unveiled network coverage across Singapore. With and its associate company, Floatel SE, also our Vision 2030 to drive the Company’s its high network speeds, ultra-low latency worked with the authorities to deploy a strategy and transformation. From a and enhanced network resiliency and floating accommodation vessel built by conglomerate of diverse parts, Keppel security, 5G is set to transform connectivity Keppel O&M in 2016 to temporarily house plans to refocus its portfolio to be an solutions for consumers, businesses and healthy foreign workers off Tanjong Pagar integrated business, providing end-to-end the government, while creating exciting Terminal (pages 44 to 48). solutions for sustainable urbanisation, with opportunities for the Group (page 27). an asset management arm to fund the No one knows how long more the Group’s growth and provide a platform In our latest instalment of interviews with COVID-19 pandemic will last, but we for capital recycling. Beyond guiding the Keppel Group senior management, we must be prepared for the current difficult Company’s long-term development, Vision catch up with Mr Manjot Singh Mann, CEO conditions to persist for some time. Let 2030 will also energise Keppelites to work of M1, who shares with us his journey with us continue to face up to the challenges together to build a more sustainable future M1, and how M1 is transforming to enhance with the resilience and Can Do spirit (pages 16 to 18). its competitiveness (pages 28 and 29). that Keppelites are known for, and work together to emerge stronger from the crisis. Despite the challenges posed by COVID-19, During the circuit breaker in Singapore Keppel continued to forge ahead as and lockdowns in various other cities, Keppelite Editor 2

Keppel Corporation Financial Results Navigating the crisis

Keppelite reproduces the speech by Mr Loh Chin Hua, CEO of Keppel Corporation, at the Company’s 2Q & 1H 2020 results webcast.

COVID-19 continues to take a toll on carrying values, and the payment of the Keppel Shipyard also had two separate the global economy. The impact of the final dividend for FY 2019. clusters of COVID-19 infections. The first pandemic, which began to be felt in cluster was closed on 29 May after there 1Q 2020, grew in the second quarter, Since the start of the COVID-19 pandemic were no new cases for 28 days, while the as governments around the world and the resulting credit crunch, we second cluster was identified on 24 June, implemented various lockdowns and have worked with our network of banks just after we entered Phase 2 of the lifting travel restrictions to contain its spread. to secure committed and long-term of the circuit breaker. For now, our two The World Bank has projected that funding to enhance the Group’s liquidity dormitories remain gazetted as isolation COVID-19 and its related containment and funding resilience. In 1H 2020, we areas, although two blocks at Cassia@ measures might result in the global tapped the capital markets for about Penjuru have been designated as “cleared economy shrinking by 5.2% this year, $670 million of medium-term notes blocks”, and are used to house recovered representing the deepest recession since and secured more than $2 billion of workers who have resumed work. the Second World War. committed bank facilities, thus ensuring that we have sufficient credit lines to Keppel O&M’s total workforce in Financials finance the Group’s operations and fund Singapore was around 24,000 in March The offshore & marine business has been growth opportunities, whether in a V, U or 2020. For most of 2Q 2020, following the particularly affected by the crisis, following L-shaped recovery. start of the circuit breaker and COVID-19 the fall in global demand for oil and plunge related lockdowns at the dormitories, the in oil prices. For 1H 2020, the Group’s Taking into account the Group’s workforce at our Singapore yards was performance was affected by impairments performance and the challenging reduced to around 1,200. Over time, the of $930 million, mainly in relation to Keppel environment, the Board has approved workforce has risen, but was still only Offshore & Marine’s (Keppel O&M) an interim dividend of 3.0 cents per about 5,000 at the start of this week. The stranded assets, receivables, stocks and share for 1H 2020, which will be paid to reduced manpower has had a significant share of impairment provisions from Floatel, shareholders on 20 August 2020. impact on our operations and topline. resulting in a net loss of $537 million. Keppel O&M is now working closely Excluding the impairments, Keppel would Offshore & Marine with the authorities to ramp up activities have made a net profit of $393 million, While Keppel O&M made a loss for safely. We are mindful of the risk of re- which includes a loss of $69 million for 1H 2020, its EBITDA before impairments infections and have put in place stringent Keppel O&M. This is 5% higher than the net for 1H 2020 was positive at $40 million. safe management measures in line with profit of $375 million for 1H 2019, a reflection Keppel O&M had a good order book guidance from the authorities. We have of Keppel’s resilient portfolio. Revenue for coming into 2020 and was in the midst also put in place plans to segregate the 1H 2020 was $3.2 billion, slightly lower than of ramping up its workforce to handle workforce within our yards, so that in the $3.3 billion in 1H 2019. the busier workload before the abrupt the event of any re-infection, as small downturn in the oil and gas sector. a group as possible will be affected. It We had free cash outflow of $278 million COVID-19 and measures to contain its is a major logistical exercise bringing in 1H 2020, an improvement over the spread caused a sharp drop in manpower healthy and recovered workers back to outflow of $563 million in 1H 2019. Our with most of the workers in Singapore work while ensuring everyone’s health net gearing was at 1.0x at end-June 2020 under lockdown for most of 2Q 2020. and safety. This includes segregating compared to 0.88x as at end-March 2020, The two dormitories managed by Keppel the workers according to projects, mainly due to investments, higher working Housing have been gazetted as isolation and applying the same segregation in capital requirements, impairments to asset areas due to COVID-19. our yards, dormitories and company- 3

provided transportation. We are also keeping a close watch on the stranded from 2005-2014, when the offshore staggering their work hours and off-days. assets as well as our customers’ industry was doing well, to other parts Keppel O&M has a pipeline of projects credit. Overall, the biggest impact of of Keppel, such as our infrastructure and to keep it busy for at least two years and the pandemic and low energy prices property businesses. This re-allocation customers want to see their projects on the Group’s business has been is now paying off as Keppel O&M goes completed. The performance of Keppel on Keppel O&M. Fortunately, other through a more challenging period. O&M will therefore be impacted by how parts of Keppel have fared better and quickly we can return to work safely will provide ballast to help the Group Operating performance for Keppel Land and whether there are further infections navigate the difficult period for the in 1H 2020 is generally in line with which may interrupt the safe ramp up O&M sector. 1H 2019, even though net profit was and resumption of work. lower at $217 million vis-a-vis $258 Property million, due in part to the absence Our net orderbook as at end-June Keppel Land has been a major of divestment gains from Dong Nai stands at $3.5 billion, with new orders contributor to the Group since its Waterfront City in Vietnam. Keppel Land of $107 million secured in the year privatisation in 2015. To-date, Keppel does not have much exposure to retail to date. Our pivot to renewables, Land has distributed upwards to Keppel or hospitality assets. This explains why gas solutions as well as other non- Corporation $3.9 billion of dividends our half year revaluation has seen an oil solutions since 2015 has paid off. since 2015, more than the $3.1 billion it increase, underpinned by our resilient We continue to receive a string of had cost the Group in the privatisation commercial portfolio comprising mainly enquiries for renewables. Demand for exercise. More importantly, the Group office assets, including Park Avenue production assets should continue has been able to reallocate the capital Central in Shanghai. to be robust and customers are likely released to fund other new initiatives, to go for conversions, a key strength like asset management and data Singapore residential sales have of Keppel Shipyard, rather than new centres. This is a continuation of how slowed, although the impact on office builds whenever possible, as cost and the Group was able to re-allocate the properties, including those under time to market favour conversions over net profits made by Keppel O&M of Keppel REIT has been relatively muted. new builds. At the same time, we are about $7.8 billion in the ten-year period Cap rates of prime office properties have not moved in major gateway cities around the world. There has been some concern that post-pandemic, Keppel Land’s home sales in China remained resilient, with some 1,050 homes sold in 1H 2020 mainly the future of offices will change and in Wuxi, Nanjing (in picture) and Chengdu. that may eventually have an impact on office demand. As of now, we have not yet seen the impact on capital values. Keppel REIT continued to have high committed occupancy of 98.6% as at 30 June 2020 and positive rental reversion for 2Q 2020.

Our other major markets in China and Vietnam seem to be faring well, barring a second wave of the pandemic. Home sales and land sales in China have remained resilient and this has benefited both Keppel Land China and SSTEC, the master developer of the Sino-Singapore Tianjin Eco-City. In the Eco-City, home sales increased almost fourfold in 2Q 2020, on the back of increased supply of homes, pent-up demand during the lockdown and the roll-out of government policies aimed at stimulating the economy. 4 5

1. The Keppel Marina re-gasification for cooling, and hydrogen fiscal stimuli and monetary easing will M1 performed well in its financial East Desalination infrastructure for power generation, and eventually lead to asset inflation. performance for 1H 2020. EBITDA was Plant (in picture) commenced accelerating the development of carbon almost flat at $141 million for 1H 2020 operations on capture, utilisation and sequestration The success of Keppel Capital’s fund compared to 1H 2019. Net profit was 29 June 2020 (CCUS) systems. These are important raising will not only grow its AUM but $48 million for 1H 2020 versus and will start to contribute to the efforts by Keppel Data Centres to also provide potential funding for some $53 million for 1H 2019, due to Group’s recurring establish itself not just as a capable of the Group’s solutions. The symbiotic accelerated depreciation in 2020. M1 income stream. data centre operator, but also one that relationship between Keppel Capital and has been on a journey to reposition 2. M1 is propelling is environmentally responsible. It also the rest of the Group’s businesses is an itself from a traditional mobile telco Singapore’s digital reflects the Keppel Group’s commitment important one that is clearly mapped out to a digital connectivity platform. This economy with the to sustainability and opens up additional under our Vision 2030. Investors invest was one of the key reasons why Keppel rolling out of the 5G network. avenues for Keppel’s engineering with Keppel Capital not just because it is and SPH undertook the privatisation capabilities and end-to-end business a strong and capable asset manager; they exercise in 2018/ 2019. An ambitious and model to create new opportunities for also see the benefits from Keppel’s other comprehensive rebuild of M1’s tech stack synergy with other parts of the Group’s businesses in Energy & Environment, is ongoing, and when completed, a new businesses. Keppel Infrastructure and Urban Development and Connectivity digital connectivity platform will emerge. Keppel O&M could all have a role in the providing proprietary deal flows and The experience for its customers will be

1 future solutions of Keppel Data Centres capabilities as a developer and operator transformed. The project is now currently that bring the best in breed sustainable of these real assets that the funds they in beta testing stage and we hope to data centre solutions to its customers. invest in target. So far, we have not seen announce the launch of the new M1 a lot of distress, other than in industries towards the end of 2020 or early 2021. Our logistics business has been an most directly affected by COVID-19 and Already, M1 has substantially increased Infrastructure contribute to the Group’s recurring REIT. This compares favourably to the net indirect beneficiary of the COVID-19 the falling energy price. This may impact its market share for postpaid customers, Keppel Infrastructure performed well income stream from the operation profit of $12 million in 1H 2019. pandemic, with higher demand for our the pace of investments as sellers hold which includes the Mobile Virtual for 1H 2020. Excluding the gain from and maintenance phase. Our other logistics solutions. Channel marketing back for better prices, while buyers look Network Operator’s (MVNO) operating the reclassification of KIT, it made a net Waste-To-Energy (WTE) projects under The connectivity business will be a key sales for UrbanFox have also seen to buy at levels reflecting the poorer on its platform, to have the second profit of $75 million, compared to $56 development are progressing well. The beneficiary in the post COVID-19 world. unprecedented growth, with more economic fundamentals. largest postpaid base in Singapore. million last year. Despite the impact Singapore’s Tuas Nexus Integrated Globally, data centre demand remains customers shopping online. We had of the COVID-19 pandemic and lower Waste Management Facility, which was strong and looks set to continue growing. earlier announced a strategic review of oil prices, all underlying businesses secured in April, will contribute to our Keppel T&T has secured government our logistics business, which is ongoing. of Keppel Infrastructure remained bottom line starting from next year. approval to develop a new data centre at resilient and reported higher earnings The construction of the Hong Kong Genting Lane, in partnership with SPH. The Investments 2 in the first half of 2020. Integrated Waste Management Facility is development of a subsequent phase will be Keppel Capital contributed a higher net making steady but slower progress amid dependent on securing green power for the profit of $47 million for 1H 2020 compared Demand for electricity and district the disruption caused by COVID-19. expansion. Last week, we also announced to $37 million for 1H 2019. With the cooling from commercial, industrial Last week, Keppel DHCS, together with the development of our first greenfield data pandemic, investments and divestments and residential customers in Singapore its partners, also secured a contract for centre development in China, through the have been pushed to the right. However, was impacted by the circuit breaker, a district cooling system in Bangkok, Alpha Data Centre Fund. fund raising has continued to be strong but not significantly. Electricity demand establishing a foothold to explore in the year-to-date with USD 1.5 billion was down by less than 10% in further opportunities in the Thai market. Data centres are much needed in the raised for various fund initiatives including 2Q 2020. With the phased re-opening With the growing need for sustainable smart, connected world we live in today. USD 800 million raised in April and of economic activities from 2 June, infrastructure, we expect to see Keppel But as a large emitter of carbon due May when many cities were locked electricity demand has shown signs Infrastructure playing a larger role in the to its power consumption, responsible down. Investors whom Keppel Capital of recovery and is expected to pick up Group’s connected value chain in the data centre operators like Keppel Data approached before the pandemic were in the second half of the year. Riding years ahead, as part of our Energy & Centres are looking for more energy able to continue with their due diligence on synergy and portfolio optimisation, Environment segment. efficient solutions and new energy virtually during the circuit breaker. The the earnings of our integrated power sources that are carbon neutral. Keppel interest shown by sovereign wealth funds and gas business have been largely Both of Keppel Telecommunications & Data Centres is therefore collaborating and large pension funds in the various unaffected by COVID-19. Transportation’s (Keppel T&T) data centre with different industry leaders to explore private fund offerings from Keppel Capital and logistics businesses have fared well how we can reduce the carbon footprint shows that demand for real assets with The Keppel Marina East Desalination in 1H 2020. Keppel T&T’s net profit for 1H of data centres, including through the cash flow and which serve as a long-term Plant commenced operations on 2020 of $51 million was boosted by gains development of floating data centre parks, inflationary hedge remains strong. There 29 June 2020 and will start to from the partial sale of units in Keppel DC tapping cold energy released from LNG is growing belief that the unprecedented 6

The successful award of the 3.5 GHz of our businesses provide critical essential C band 5G Stand Alone license jointly services such as power, water, waste with StarHub is a major coup for M1. management, gas and connectivity. The joint license and ownership of the infrastructure for 5G will enable M1 to Given the continuing impact of COVID-19, share costs with StarHub and more 2H 2020 will probably remain very aggressively push out 5G service at an challenging. For Keppel O&M especially, affordable cost to our shareholders. Thus we will have to watch our fixed costs far, our share of the expected initial rollout closely. Keppel O&M has gone through cost for 5G is under $200 million. Besides a period of rightsizing from early 2015 to the capex cost, the most important aspect 1Q 2019. We were leaner and fighting fit for 5G rollout is the business case for 5G going into this crisis, with a clear strategy applications, especially for businesses to navigate the energy transition as well and communities. The real benefits as the climate change actions which will of 5G extend beyond faster download probably accelerate. Further rightsizing speed for consumers but the low latency will be required to ensure our fixed and the network slicing that have huge overhead costs can be brought down in industry and business applications. M1 line with the realities for the industry. To has been at the forefront of 5G trials, with that end, to demonstrate our collective numerous joint projects with industry resolve and set the tone from the top, players such as IMDA, MPA, PSA, Keppel the CEO and management of Keppel O&M, Airbus, IBM, Samsung etc. As a O&M have volunteered to take a base Group, we are excited by the prospects salary reduction of between 5% and of how 5G can transform connectivity 10%. In solidarity with Keppel O&M, the solutions for consumers, businesses and senior executive management of Keppel communities. Data centres and M1/ 5G Corporation will also take a base salary connectivity will be powerful growth reduction of between 5% and 10%, while engines for our Connectivity segment and the directors of Keppel Corporation and will be major contributors to the Group in Keppel O&M will take a 10% reduction in our Vision 2030. their annual fees.

Conclusion We will continue to work as a Group To conclude, excluding the large and strive to provide better outcomes impairments recorded as well as the than what the underlying economic poorer performance by Keppel O&M, the conditions might otherwise allow. rest of the Group has so far navigated Precisely in times like these, it is the COVID-19 pandemic fairly well. The important for the Group to be guided Group’s revenue has fallen, but only by by a bold, long-term vision, which about 4% for 1H 2020 compared to transcends the impact of the current 1H 2019. Net profit, including the operating crisis. This is why we unveiled our Vision losses at Keppel O&M but before the 2030 two months ago. We continue to impairments arising from COVID-19 and believe in the inherent long-term value the oil price plunge, is slightly ahead of of Keppel and will work hard to make 1H 2019. The operating resilience reflects Vision 2030 a reality for the Group and the diversity of the Group’s portfolio. Many maximise value for all stakeholders. 7

Keppel Corporation Financial Results Financial highlights

Keppelite reproduces highlights of the presentation by Mr Chan Hon Chew, CFO of Keppel Corporation, on the Company’s financial performance at the 2Q & 1H 2020 results webcast.

2Q 2020 financial highlights

$m Excluding Impairments

2Q 2020 2Q 2019 % Change 2Q 2020 2Q 2019 % Change

Revenue 1,325 1,784 (26) 1,325 1,784 (26) EBITDA (322) 262 n.m.f. 370 262 41 Operating (Loss)/Profit (422) 160 n.m.f. 270 160 69 (Loss)/Profit Before Tax (604) 206 n.m.f. 315 206 53 Net (Loss)/Profit (697) 153 n.m.f. 222 153 45 (Loss)/Earnings per Share (cents) (38.3) 8.4 n.m.f. 12.2 8.4 45 n.m.f. denotes No Meaningful Figure

1H 2020 financial highlights

$m Excluding Impairments

1H 2020 1H 2019 % Change 1H 2020 1H 2019 % Change

Revenue 3,182 3,315 (4) 3,182 3,315 (4) EBITDA 52 651 (92) 754 670 13 Operating (Loss)/Profit (149) 482 n.m.f. 553 501 10 (Loss)/Profit Before Tax (357) 489 n.m.f. 573 508 13 Net (Loss)/Profit (537) 356 n.m.f. 393 375 5 (Loss)/Earnings per Share (cents) (29.5) 19.6 n.m.f. 21.6 20.7 4 n.m.f. denotes No Meaningful Figure

2Q 2020 financial highlights As a result of the impairment provisions, the Revenue for the second quarter decreased In 2Q 2020, the Group recognised Group recorded a net loss of $697 million by 26% to $1.3 billion compared to the material impairment provisions, in the 2Q 2020, as compared to net profit of same quarter last year. All divisions pertaining mainly to the Offshore $153 million for 2Q 2019. Consequently, loss recorded lower revenue. Revenue from the & Marine (O&M) business, and the per share was 38.3 cents as compared to O&M Division fell 44% due to significantly Group’s financial results were adversely earnings per share of 8.4 cents in the same lower level of activities as a result of impacted. quarter last year. COVID-19 and the sharply reduced 8

workforce in our Singapore yards. Lower the Group including the recoverability of $652 million on contract assets, number of property units handed over contract assets, receivable balances and receivables and stocks. and reduced sales in the power and gas stocks under work-in-progress in relation businesses further contributed to the to the O&M business, and investments in On 1 June 2020, we have requested Floatel decline at the topline. associated companies. to perform an independent review of the assumptions used in the conduct of its The Group recorded operating loss of To assist in its value-in-use (VIU) impairment assessment, with a focus on $422 million and pre-tax loss of assessment of the rigs, the Group engaged the reasonableness of market outlook $604 million in 2Q 2020, as compared to an industry expert, Pareto Securities AS assumptions and parameters used in the profits in the corresponding period in 2019. (Pareto), to provide a view on the market valuation of its vessels. The parameters All divisions posted higher pre-tax profits, outlook, assumptions and parameters provided by the independent review were except for the O&M Division. After tax and which were used in the VIU computations adopted by Floatel in its VIU calculations, thus non-controlling interests, net loss was performed by an independent professional resulting in a revised valuation which was $697 million for current quarter, translating firm. Key inputs into the estimation of the lower than the carrying value of its vessels. to loss per share of 38.3 cents. VIU include dayrates and cost assumptions, As a result, Floatel has made an impairment utilisation rates, discount rates and charge of US$398 million on the carrying 2Q 2020 impairments estimated commencement of deployment. value of its vessels. Consequently, the Group The COVID-19 pandemic has severely recognised a loss amounting to $237 million, impacted the global economy and brought The VIU model used by the independent being our share of impairment charge up to about significant market volatility and professional firm is consistent with prior our equity carrying value as well as fair value uncertainty, including a sharp reduction periods and is based on the net present loss on our investment in Floatel preference in global demand for oil and oil prices. value of cash flows generated from shares. With the recognition of these losses, As these events and conditions have operating the rig over the useful life of the the carrying values of equity and preference significant financial reporting implications, asset. Net cash flows from rig operations share investments have been brought down ACRA had published a financial reporting are driven by dayrates, utilisation rates to zero during the quarter. practice guidance in May 2020 highlighting and commencement of deployment, key focus areas when preparing and net of costs including operating costs, 2Q 2020 financial highlights (excluding reviewing the financial statements, pre-charter operating costs, operator’s impairments) especially in areas where estimates, margins, and maintenance capital Total impairment losses recognised during assumptions and judgement are required. expenditures. With weakening demand the quarter amounted to $919 million, on the back of COVID-19 and a low oil mainly relating to the O&M Division. The oil and gas industry is experiencing price environment, we have seen falling an unprecedented and very difficult period dayrates, lower utilisation rates and delay Apart from O&M, underlying operations due to the collapse of oil prices as a result in the commencement of rig deployment. in other parts of the Group remained of lower demand. Amidst the highly volatile Such deterioration in market conditions resilient amid headwinds brought about environment and low oil prices, oil majors have led to significantly lower estimated by the COVID-19 pandemic. The Group are curtailing exploration and production returns expected from operating a achieved an EBITDA of $370 million before spending, which has adversely impacted rig. Coupled with a higher weighted impairments in 2Q 2020, 41% higher year- dayrates and utilisation rates of the O&M average cost of capital, the result was a on-year. This was underpinned by strong industry. Several drilling rig companies considerable contraction in the VIU of the operational improvements in the Property are headed for Chapter 11 in the United rigs in the current quarter’s assessment as and Infrastructure Divisions. States. The events during the quarter compared to the previous quarter. have provided a clearer indication that the Excluding the impairments, the Group was impact from COVID-19 and uncertainties The work performed by the independent overall profitable for 2Q 2020 at in the global economy would likely professional firm, using inputs and $222 million, which was 45% or $69 million continue for a prolonged period. parameters from Pareto, confirmed the higher than the same period last year. Group’s internal assessment of a lower Against this backdrop, the Group carried VIU based on the market observations 1H 2020 financial highlights out a review during the quarter to assess of such inputs in the current quarter. In 1H 2020, the Group recorded net loss the assumptions used in the assessment Arising from the assessment, the O&M of $537 million, as compared to net profit of the carrying values of certain assets of Division recognised provisions of of $356 million in 1H 2019. Consequently, 9

annualised ROE was at negative 10.3%, Keppel Corporation Financial Results as compared to positive 6.3% recorded in the same period last year. In conversation Free cash outflow for the first six months of this year of $278 million was an improvement over the free cash outflow of $563 million in the same Keppelite shares highlights of management’s responses to period last year. This was mainly due questions from the media and investment community at the to lower working capital requirements, Company’s 2Q & 1H 2020 results webcast. partly offset by lower advances from associated companies.

Net gearing increased from 0.85x Q: With the 1H 2020 net loss of Investment Decisions from the oil at the end of 2019 to 1.0x at the end $537 million and impairments of majors and reduction in spending by of June 2020. This was mainly due $930 million, is there now material oil majors. We also saw rig companies to investments, working capital adverse change (MAC) to the pre- going into Chapter 11 in the US. Those requirements and payment of the final conditions of Temasek’s partial offer? are events that have taken place dividend for FY 2019, as well as the during the quarter. impact from lower equity due to the LCH: Based on the net profit of the significant impairments recorded in the second quarter that was adversely As a result, we had to take a serious look current period. impacted by impairment provisions, at our impairment provisioning. That is we believe that the 20% threshold in a requirement, something we need to Our interim cash dividend to our the MAC clause in respect of net profit do every quarter. It is made even more shareholders for 1H 2020 will be after tax has been crossed, which important because of the uncertainties, 3 cents per share. means that the MAC pre-conditions in and this has been emphasised by the Temasek’s pre-conditional partial offer Accounting and Corporate Regulatory 1H 2020 financial highlights (excluding have not been satisfied as of today. Authority (ACRA) in their release of impairments) guidance in response to this. Recently, Underpinned by the Infrastructure However, we are unable to comment Singapore Exchange (SGX) has also and Property businesses, the Group’s on Temasek’s pre-conditional partial sent out reminders on the importance EBITDA excluding impairments was offer and the action that Temasek of the quality of financial statements. As $754 million for the first half of 2020, could take resulting from the non- a result, we have taken the additional an improvement of 13% over the same fulfilment of this pre-condition. step of engaging a professional firm period last year. like Pareto – they are industry experts Q: Why was the review of O&M – to provide us with their inputs into Excluding the impairments of assets undertaken in this quarter? our value-in-use (VIU) calculations in $930 million, the Group was profitable determining the impairments. So we for the six months of 2020 at CHC: We actually review provisions have ensured that there is rigour in the $393 million, 5% or $18 million higher and adequacy of impairments every assessment of the VIU calculations. than the net profit of $375 million in quarter, whenever we close our books. 1H 2019. For like comparison, the net In this case, it is no different. This process has taken time. And profit of $375 million in half year 2019 as soon as we were aware of the had also excluded impairments. In the second quarter of 2020, we have magnitude of the provisions, we gave seen unprecedented uncertainties guidance last week, on 24 July. Accordingly, annualised ROE without around COVID-19 and volatility in impairments was 6.9%, ahead of the the oil market. We have seen a lot of LCH: This VIU has been a model that 6.6% recorded last year. cancellations of rig charters, contract we have been using not just this quarter delays, and also among the oil majors, but also in the course of how we assess For more information on the results, delay in exploration programmes the adequacy of impairments as well as please visit www.kepcorp.com. resulting in reduction in Final our carrying assets. 10

Q: Could I clarify if the provisions made Q: What do you think of current debt Q: Net gearing has risen to 1.0x. Could to the contract assets and doubtful debts levels? Are there any targets for the you please share with us the Group’s were made against specific contracts? net gearing ratio? Any plans for debt levers to pare this down to more What if some other projects are issues in the near term? palatable levels? cancelled down the road? Will you need to take more impairments? CHC: As we have discussed in the past, LCH: We have mentioned in our Vision we have always managed our balance 2030 various steps that we are going to CHC: The contract assets refer to several sheet in such a way as to have an take to look at capital allocation in order rigs that were constructed by Keppel institutional quality balance sheet. As a to achieve Vision 2030. One of the steps Offshore & Marine (Keppel O&M), and guide, we would not want our gearing we had outlined was our goal to more requests were made by customers to to exceed 1.0x, but having said that, that actively turn our property landbank. defer the delivery dates in the prior years. is guidance. It is not a target or a cap. In making the assessment on these During different business cycles, there The Group has quite a sizeable landbank contract assets, we have considered likely may be times when the net gearing is in China and Vietnam. Some of the land outcomes such as rigs not being delivered, below or above 1x. But as of now, the has been accumulated over a number of and us taking possession of those rigs gearing is not in excess of 1.0x. years. We can build up to 45,000 units of and chartering them out to work. That is homes. So Swee Yiow and the group at precisely the reason why we use VIU as That said, as we have mentioned in our Keppel Land China and at Keppel Land a basis for determining the impairment. respective speeches, we are looking Vietnam have been looking very actively We have considered that scenario, and as very closely at cost management and at how we can activate this landbank. of now, we believe those provisions are also looking at areas where we can This could be through development, sufficient, even considering that scenario. improve on our net gearing. master development, or through joint ventures. It could even be outright sale of the land. These would be some of the steps that we could take. Keppel senior management engaged media and investors at the Company’s 2Q & 1H 2020 results webcast. Within the Group, we have also been getting some of our assets ready. For some of these assets, when they are de-risked, and cashflow generating, they might be suitable candidates for us to monetise through the REITs and trust that we have.

Q: What is the reason for the strong revenue in O&M given the lockdown?

CO: The strong revenue is accounted for by continued activities in the Brazil, US and China yards. We still have activities going on in those yards because different jurisdictions have different approaches to the pandemic. The most badly hit was Singapore where we had a lockdown for almost a full quarter. So they have been contributing to the topline for the O&M group during this quarter.

LCH: The other thing is that for O&M, our revenue was quite strong in the first quarter. As I mentioned in my speech, we actually came into 2020 with quite a strong orderbook. First quarter was before 11

the lockdown in Singapore, so we were Q: Several property companies have still afford. That was how we landed on this still able to work. In March, we had a total seen a fair value loss on investment decision on three cents. workforce of over 20,000 in Singapore properties. What drove the revaluation yards. The slowdown was mainly in the gains on your investment properties? Q: Do you think there is a need to further second quarter, but overall, revenue was calibrate Vision 2030 with the uncertain still quite respectable for the first half. TSY: As shared by Chin Hua, I think most and dynamic market situation? of our portfolio are in prime commercial Q: Looking at the present situation in assets, and not in retail and hospitality LCH: Our Vision 2030 is broad enough. the O&M sector, do you think that the assets, so the impact from COVID-19 is We do recognise that markets are now level of work would pick up in 2H 2020? less. All our commercial assets are good changing, and not only changing but Would you need to further streamline quality, prime, Grade-A office buildings, changing rapidly. Vision 2030 spells out your workforce in Singapore? across different countries that we operate very clearly the direction of travel; but I think in. Currently, they all have very good in terms of the specifics, there can be some CO: We are working very closely with the occupancy, and some of them have agility in the way we run our businesses, authorities on how to bring our workers been kept in our book for a while, so we taking into account the changing external back to the yards to work safely. As of managed to get some valuation gains. environment, and even the portfolio that we now, we have all the safe management have. We have set a very clear way that we measures in place. Q: When will the US$1.5 billion in capital will do capital allocation, looking at some commitments for Keppel Capital be metrics, and this will be something that will I think that there will be increased activity deployed? guide the Group going forward. coming from the second half of 2020, given that nationally, more dormitories are being CT: The US$1.5 billion was committed So in short, our Vision 2030 is actually cleared and more workers are being cleared. by sovereign wealth funds as well designed to have that agility to take into Exactly what is the number, we will not as large pension funds into different account changes in circumstances. The know. But we are monitoring that closely. funds. For instance, for the Keppel Asia direction of travel is very clear, we want Infrastructure Fund, we have already sustainability to be a very key part of our On the manpower requirement, as CEO started investing. We have a good deal strategy. We know what our strengths are, and CFO mentioned earlier on in their flow pipeline supported by the Group, with very strong engineering DNA and speeches, we came into the year with and there are also other investments that project management. And of course, we quite a big backlog, and the manpower we are looking at. We are into logistics, have an asset management arm that works has also been right sized since 2015. We both in Indonesia and China. We are also very symbiotically together with our other are lean. Of course, we are also looking looking at assets in Vietnam. So we have business segments to create opportunities at how to control our costs, and part of it already started looking for investments in for the Group and also for investors, which would be on streamlining our manpower. the various activities that we have. can come through the private funds and the We will be working closely with listed REITs and trust. stakeholders like our unions to take a look Q: With the losses in 1H 2020 and net at what is the right size post-pandemic. gearing of 1.0x, could you share the For more information on the results, please consideration in still paying out an visit www.kepcorp.com. Q: China property sales were strong interim dividend? in the second quarter. Could you share LCH – Mr Loh Chin Hua, what is happening on the ground? LCH: This was something the Board had CEO of Keppel Corporation debated at length. The losses in the first TSY: After the COVID-19 lockdown was half were primarily driven by the huge CHC – Mr Chan Hon Chew, lifted and sales flats were opened, the impairment in the O&M business. Of CFO of Keppel Corporation buying interest is coming back quite course, you cannot extract that, but if you healthily. In 1H 2020, in China, we sold were to exclude that, actually the Group has CT – Ms Christina Tan, about 1,050 homes, compared to 1,140 improved on its performance in terms of net CEO of Keppel Capital sold in 1H 2019. It is quite close. And profit for the first half. Our cash outflow is home sales in most cities that we operate also smaller. On that basis, we have decided CO – Mr Chris Ong, in, such as Chengdu, Wuxi, Shanghai and to pay a very small interim dividend. Last CEO of Keppel Offshore & Marine Nanjing, are quite resilient and healthy. year, it was eight cents, and this year we We expect the resilient demand will have decided that a small interim dividend TSY – Mr Tan Swee Yiow, continue in the second half. is appropriate and something that we can CEO of Keppel Land 12 13

Keppel REIT Financial Results Keppel DC REIT Financial Results Stable portfolio performance Keppel DC REIT delivers 38% y-o-y growth in distributable income for 1H 2020 Keppel REIT’s prime office portfolio and high quality tenant profile have provided income stability and resilience during this challenging period. Keppel DC REIT has delivered distributable income of $75.0 million for 1H 2020, 38% higher than 1H 2019’s $54.4 million.

Keppel REIT has achieved stable Distribution per Unit (DPU) for 2Q 2020 With increased government measures distribution income of $47.5 million was 1.40 cents, bringing DPU for 1H and the extended COVID-19 outbreak, for 2Q 2020 and $94.8 million for 1H 2020 to 2.80 cents. This translated to an the Manager has increased targeted The acquisitions of Keppel DC Singapore its share of taxable income from the asset Aggregate leverage remained low 2020. Notwithstanding the impact annualised distribution yield of 5.1% based tenant support measures over this last 4 and DC1 in 4Q 2019, as well as the and exercised the option to extend its at 34.5%, providing the REIT with a of the implementation of COVID-19 on the market closing price of $1.10 per quarter. Keppel REIT’s tenant support addition of Kelsterbach Data Centre in land lease title by 30 years to June 2050. comfortable debt headroom to pursue tenant relief measures, the cessation Unit as at 30 June 2020. measures are estimated to amount to May 2020, contributed to the positive acquisition growth. of rental support1 and lower income approximately $12.5 million as at 30 June performance for 1H 2020. Accordingly, As at 30 June 2020, the REIT’s portfolio contribution following the divestment All of Keppel REIT’s 2020 loans have 2020. These include the full pass-through Keppel DC REIT declared Distribution per occupancy rate remained healthy at 96.1% The Manager has put in place heightened of Bugis Junction Towers in November been refinanced. The all-in interest rate of property tax rebates3 and cash grants Unit (DPU) of 4.375 cents for 1H 2020, with a long weighted average lease expiry controls and safety measures to protect its 2019, distributable income for 1H 2020 was lower at 2.48% per annum, while from the Singapore Government which 13.6% higher than 1H 2019’s 3.850 cents. of 7.4 years. clients and employees, while ensuring that was maintained year-on-year due aggregate leverage was 36.3%. Keppel is estimated to amount to approximately the REIT’s assets continue to operate with mainly to contributions from T Tower2, REIT’s undrawn credit facilities available $9.2 million. In 1H 2020, the Manager completed the Keppel DC REIT has in May 2020 zero downtime. Beyond the regulations commencement of major leases in the amounted to approximately $938 million, acquisitions of the remaining 999-year refinanced its short-term Euro loan to a set out by the respective governments, the Singapore portfolio, higher capital gains including $369 million of committed As at 30 June 2020, Keppel REIT’s leasehold land interest at Keppel DC four-year term loan at favourable margins. Manager has also equipped its colocation distribution, and lower borrowing costs. facilities as at 30 June 2020. portfolio performance remained resilient, Dublin 1, and Kelsterbach Data Centre, The Manager has also secured the facilities with sufficient supplies and set supported by its quality portfolio with increasing the REIT’s assets under refinancing of the Australian dollar loan up alternative network operating centres, high committed occupancy of 98.6%, management to approximately $2.8 billion due in 3Q 2020 to 2024. where practicable, in case of an infection as well as long weighted average lease as at 30 June 2020. at its facilities. Footnotes expiry (WALE) of approximately 4.6 years 1 As at 30 June 2020, the REIT’s average 1. Refers to rental support and 6.5 years for the portfolio and top 10 in relation to Marina Bay Following the acquisition of Keppel DC cost of debt remained competitive at The COVID‐19 pandemic has radically tenants respectively. Financial Centre Tower Singapore 4 in 4Q 2019, the REIT has 1.7% per annum and its interest coverage altered the business and social landscape. 3, which was fully drawn obtained tax transparency treatment for ratio is at a healthy level of 12.8 times. While a number of business sectors have in 1Q 2019. 311 Spencer Street in Melbourne achieved been adversely affected, the technology practical completion on 9 July 2020. With 2. The acquisition of T sector continues to do well. The widespread Tower in Seoul was this, the 30-year lease to the Minister lockdowns have contributed to an completed in May 2019. for Finance for the State of Victoria has accelerated adoption of digital technology. commenced and the office tower will serve 2 3. Property tax rebates The data centre industry remains resilient, of 30% for office as the headquarters for the Victoria Police. tenants and 100% for supporting data storage and processing retail tenants from the requirements of the digital economy. Singapore Government. The COVID-19 pandemic continues to present unprecedented challenges to the business community. Its impact on the global economy is yet to be fully determined. The Manager remains focused 1. Designed to be an eco-icon in Melbourne, the 40-storey freehold Grade A office tower on maintaining stable and sustainable augments Keppel REIT’s sterling portfolio of distributions to Unitholders, and achieving commercial assets pan-Asia. It is powered by long-term growth. Keppel REIT’s high 100% renewable electricity as part of the City of Melbourne’s second Melbourne Renewable portfolio committed occupancy, long Energy Project. WALE and established tenants from diversified sectors will continue to support 2. The acquisition of Kelsterbach Data Centre, Keppel DC REIT’s second data centre in the REIT’s income resilience. Germany, was completed in May 2020. 14

Keppel Pacific Oak US REIT Financial Results Resilient performance

Keppel Pacific Oak US REIT (KORE) has committed occupancy was 94.3% as at As businesses re-evaluate their space needs achieved distributable income (DI) of 30 June 2020, with only 2.8% of leases by and some move towards decentralising US$14.7 million for 2Q 2020, bringing DI cash rental income (CRI) expiring for the their workforce, KORE’s suburban office for 1H 2020 to US$29.1 million, 18.5% and remainder of the year. buildings and business campuses are well 17.6% above that of 2Q 2019 and 1H 2019 positioned to benefit from this potential respectively. The stronger year-on-year KORE achieved strong rental reversion shift away from downtown, CBD locations. performance for 1H 2020 was driven by of 14.7% in 1H 2020, driven mainly by KORE’s distinct portfolio also lends itself several factors, including contributions the tech hubs of Seattle and Austin. well to the additional space requirements from One Twenty Five in Dallas, Texas, Average rental collections for 1H 2020 as businesses de-densify. KORE’s strategic higher rental income mainly from new was approximately 94% by CRI. To-date, exposure to the historically fast-expanding leases across the rest of the portfolio, the Manager has received rent relief tech hubs provides further income positive rental reversion from lease requests from approximately 15% of resilience as businesses accelerate their renewals signed in 2H 2019, and built-in KORE’s tenancies by CRI across different digital transformation strategies driven by rental escalation in the portfolio. industries. Of this, only 5.7% have been COVID-19. granted, equivalent to approximately Distribution per Unit (DPU) for 1H 2020 was 2.8% in economic impact. The weighted Separately, as of the close of market 3.10 US cents, 3.3% above 1H 2019 DPU. average lease expiry by CRI for KORE’s trading on 29 May 2020, KORE has Distribution yield was 8.9% based on the portfolio was 4.1 years. been included in the MSCI Singapore market closing price of US$0.700 per Unit Small Cap Index, which is designed to as at the last trading day on 30 June 2020. In July 2020, the Manager obtained a measure the performance of the small loan facility for the early refinancing cap segment of the Singapore market. Notwithstanding the slowdown in property of KORE’s borrowings that were due Mr David Snyder, CEO and CIO of the tours across the US due to the pandemic, in November 2021, and restructured Manager, said, “This marks an important KORE committed approximately interest rate swaps related to these milestone for the REIT, and underscores 196,000 sf of office space in 1H 2020. Most borrowings. With this, KORE will have no our commitment to increasing our of the leasing activity occurred in Seattle, long-term debt refinancing requirements visibility among global investors and Atlanta and Houston. KORE’s portfolio until November 2022. enhancing our trading liquidity.”

Keppel Pacific Oak US REIT achieved stronger year-on- year performance for 1H 2020, which was driven by several factors, including contributions from One Twenty Five (pictured) in Dallas, Texas. 15

Lighting up for SG United

In solidarity with Singapore in its fight against the COVID-19 pandemic, buildings around the city-state, particularly in the financial district area, dressed up their exteriors to rally behind the nation’s ongoing SG United efforts. The SG United campaign is a rallying call to all Singaporeans to work together to overcome the challenges arising from COVID-19.

Ocean Financial Centre, Keppel’s eco-icon in the heart of Raffles Place, featured a projection of the national flag on its façade. The lighting projection ran from 1 June to 15 June, and aimed to uplift spirits as communities in Singapore played their parts to keep COVID-19 transmissions at bay.

Ocean Financial Centre featured a projection of Singapore’s national flag in a display of solidarity during the COVID-19 pandemic.

New Indonesian logistics property venture

With Indonesia’s growing middle- acquire and manage high quality logistics This comprises three single-tenanted class population driving the rapid properties in Indonesia. properties and one multi-tenanted growth in consumption and logistics property with a total net e-commerce, coupled with the Comprising Keppel-MMP Indonesia lettable area of over 163,000 sm. These limited supply of modern logistics Logistics Fund, an Indonesian parallel assets, with an occupancy of more facilities in Jakarta, the Indonesian fund and co-investment capital from than 96%, serve established tenants logistics property sector is seeing Manulife, the venture has an initial target in the consumer goods, logistics and strong demand. size of US$200 million. e-commerce industries, such as Unilever, Li & Fung and DHL. In June 2020, Alpha Investment It has received initial capital Partners (Alpha), PT Asuransi Jiwa commitments of around US$93 million Alpha, a private fund manager under Manulife Indonesia – a subsidiary from venture partners including Keppel Capital Holdings, will be the of Manulife Financial Corporation Manulife, and intends to acquire investment manager of the venture, and (Manulife) – and PT Mega stakes in four modern and high-quality MMP will be strategic advisor to Alpha Manunggal Property Tbk (MMP) stabilised logistics assets in Greater and property manager of the venture’s entered into a new venture to jointly Jakarta from MMP as its initial portfolio. logistics properties. 16 SPECIAL FOCUS 17 SPECIAL FOCUS

Mr Loh Chin Hua, accompanied by Unveiling Vision 2030 Mr Chan Hon Chew and younger business leaders from across the Group, gave a briefing to the analyst Keppel Corporation has announced its Vision 2030 to drive the company’s long-term strategy community on Vision 2030. and transformation. From a conglomerate of diverse parts, Keppel plans to refocus its portfolio to be an integrated business, providing end-to-end solutions for sustainable urbanisation, with an asset management arm to fund the Group’s growth and provide a platform for capital recycling.

Building on Keppel’s strengths pursue strategic M&A opportunities to leaders involved in formulating Vision in engineering, developing and accelerate chosen growth engines, as 2030, gave a briefing on 28 May 2020 to operating specialised assets, as well well as selective divestments to free up analysts covering Keppel Corporation as capital and asset management, its balance sheet. As part of this process, on what the vision entailed. Mr Loh Chin the Company will focus on four key the Group has announced the strategic Hua said, “Amidst a rapidly changing business areas, namely energy and review of its logistics business. global environment, Keppel must remain environment, urban development, nimble and evolve to stay relevant and connectivity and asset management Mr Loh Chin Hua, CEO of Keppel competitive. The year-long Vision 2030 – all part of a connected value chain. Corporation, accompanied by CFO exercise outlines the key tenets of our and seize opportunities created by 1. Contribution to the Group’s long-term funds. Keppel will also focus on growing Besides organic growth, it will actively Mr Chan Hon Chew and younger business strategy as we seek to grow our business macrotrends such as the increasing 15% ROE target; its recurring income, while shifting away focus on climate change, energy 2. Scalability; from lumpy project-based earnings. transition, urbanisation and technology 3. Potential for synergy and creation of proliferation. Notwithstanding new profit pools, and Integrated OneKeppel Redefining Keppel’s divisions expectations that COVID-19 will 4. Alignment with the Company’s Vision, Deepening the efforts in recent years to have a lasting impact on how many Mission and environmental, social and promote intra-company collaboration, ENERGY & URBAN of us choose to live, work, learn and governance (ESG) goals. Keppel will adopt a OneKeppel CONNECTIVITY ENVIRONMENT DEVELOPMENT play, many of these macro trends will approach to harness the synergies continue, and may even be accelerated Developing new growth engines of the Group and capture new profit by the pandemic.” The Company plans to focus more on pools that might not be available to Keppel O&M Keppel Land M1 areas such as renewables, environmental individual business entities. These may “This is an exciting milestone for solutions, nearshore floating include large-scale urban developments Keppel Infrastructure Keppel Urban Keppel Data Centres Keppel as we take the next step in infrastructure, connectivity solutions or floating data centre parks, which Solutions Keppel Renewable Keppel Logistics our growth trajectory. Building on the including green data centres, as well as involve different capabilities within the Energy Sino-Singapore Tianjin company’s strengths and business integrated smart district development. Group. Keppel also plans to harness KrisEnergy Eco-City model, Vision 2030 will pave the way It will also pro-actively activate its M1’s digital solutions and the impending Offshore & Marine for Keppel to be a powerhouse of landbank to improve asset turns and 5G network to enhance its suite of Property solutions for sustainable urbanisation returns, while channeling some of the offerings. Infrastructure Developer of large-scale, complex developments and projects – brightening lives with clean energy freed balance sheet to support new and environmental solutions, building Sustainability at the core of the Investments growth initiatives. Melding technology vibrant and smart cities of the future, and changing customer preferences, Company’s strategy Leading asset manager, harnessing group synergies to create quality and at the same time generating the Group will also explore new living, Keppel will make sustainability its solutions and returns for shareholders and investors higher returns and creating value for all working and retailing solutions. business, seizing opportunities in green our stakeholders.” developments, renewables, new energy Scaling up asset management arm and circular economy solutions. The ASSET MANAGEMENT Disciplined approach to managing Asset management is an important twin Company’s portfolio will be refocused business that will help fund the solutions created on sustainable urban solutions, with With a sharpened business focus and climate risk assessments and internal Keppel Capital by the Group – real assets with cash a more asset-light model, Keppel will flow and that serve as an inflationary carbon pricing serving as a guide Eco-system of private funds and listed REITs & Trust take a disciplined approach to capital hedge, which are increasingly sought for portfolio allocations. High-impact allocation, based on four criteria: after by pension and sovereign wealth sustainability goals will be set, with 18 SPECIAL FOCUS

business targets for the deployment Disciplined approach to managing business of sustainable solutions, and operational targets to reduce carbon Potential for Fit with Vision, emissions, waste generation and water Returns Scalability integration & Mission & ESG consumption intensities. Governance synergy Goals and incentives for sustainable business practice will be enhanced, Ability to Potential Reinforces our Alignment with with strengthened board oversight achieve target to be a ability to ‘Hunt ‘Sustainable and environmental sustainability ROE over the meaningful as a Pack’ Urbanisation’ included in the executive remuneration long term contributor to theme scorecard. the Group

The preparation of Vision 2030 commenced in the first half of 2019, with a group of about 30 younger Pursue strategic M&A transactions as part leaders across business units tasked of Keppel’s growth engines to paint their visions for Keppel, taking into account emerging trends and the Group’s track record and capabilities. These ideas were then distilled into a Make selective divestments to free up Keppel’s balance sheet multi-year strategic plan to steer the Company’s long-term development, with interim targets for 2025. Keppel’s unique capital recycling business model will serve as a competitive edge when considering different transactions

Focus on growing recurring income

Future Keppel

“In 2030, we see Keppel as: · A global leader - a creator of low-carbon smart cities and a powerhouse of end-to- end solutions for sustainable urbanisation; · An ESG leader with businesses advancing the international sustainability agenda; · A high returning stock, with 15% ROE, good dividends and strong growth trajectory; and · A community champion - a builder of vibrant communities and a sustainable future for all. This is an exciting vision that I believe will imbue in all Keppelites an even stronger sense of purpose in what they do.”

Mr Loh Chin Hua, CEO, Keppel Corporation 19

Connecting with investors

Keppel Corporation has stepped up efforts to During the circuit breaker in Singapore, as a conference organised by Singapore engage the investment community via digital Keppel Corporation also held a series of Exchange and Credit Suisse. means, in light of safe-distancing measures non-deal virtual roadshows to engage as a result of the COVID-19 pandemic. with investors at home and abroad In May, Mr Loh Chin Hua, CEO of Keppel across Hongkong, Malaysia, the UK and Corporation, unveiled Keppel’s Vision 2030 Since the start of the year, Keppel senior the US. Management has met about 90 over a video conference hosted by Keppel, management have been engaging institutional investors virtually through where he briefed sell-side analysts on the investors through conference calls. these roadshows, group meetings, as well Group’s long-term roadmap.

1

Keppel Corporation’s Board of Directors interacted with shareholders during the Company’s virtual AGM.

Virtual AGMs

In view of tightened safe-distancing gave presentations and addressed Chairman and Board of Directors requirements, the Group held ‘live’ questions that shareholders had pre- online. Presentation materials, results webcasts of its Annual General submitted prior to the sessions. and minutes of the AGM, as well Meetings (AGMs) in place of physical as responses to key questions from meetings with shareholders. At these Some 230 shareholders participated shareholders were issued via SGXNet virtual AGMs, senior management in Keppel Corporation’s AGM on and made available on Keppel of the various listed Keppel units 2 June 2020, where they met the Corporation’s website. 20 21

1. The Keppel Marina East Desalination Plant Strengthening our water security innovatively achieves multiple land uses by situating treatment facilities underground, freeing up nearly 20,000 The large-scale, dual-mode Keppel Marina East Desalination Plant is the first of its kind in Singapore, square metres of open green rooftop space for with an innovative design which situates treatment equipment completely underground and features community activity and a lush green rooftop for community recreation. recreation. 2. Located in Huizhou Guangdong, the new data centre by Alpha Data Centre Fund would be the other three taps – imports, rainfall Fund’s first asset in China. and recycled water – it is a practically limitless source. The availability of 2 desalination makes Singapore’s water supply immensely resilient. And the KMEDP coming online further strengthens Singapore’s water security.” Keppel expands into fast-growing Dr Ong Tiong Guan, CEO of Keppel Infrastructure, said, “We are pleased data centre market in China to have commenced operations for the iconic KMEDP and are proud to support PUB in securing Singapore’s water supply. KMEDP will also Alpha Data Centre Fund (Alpha DC operator, Shenzhen Huateng Smart our investment in this project, which contribute to the Group’s recurring Fund), through its wholly-owned Technology Co, Ltd (Huateng Co.), to will be the Fund’s first asset in China. income stream, bolstering our subsidiary, has entered into an agreement implement global best practices for data This investment will provide further ability to create long-term value for to acquire 100% shareholding interest centre operations in the data centre. diversification to the Fund’s portfolio, and stakeholders. in Huizhou Bike Property Co Limited, enhance the risk-adjusted returns for our (Huizhou Bike), which is a fully-owned When fully developed, the data centre investors. The collaboration with Keppel “Completing the final lap of testing 1 subsidiary of Country Garden Holdings in Huizhou will fit more than 6,000 Data Centres bears testament to how and commissioning during the Co., Ltd. (Country Garden). Huizhou high-density racks and have China the different business units in the Keppel COVID-19 pandemic was challenging Bike will own a greenfield data centre Data Centre Class A GB-standard Group are working closely together to due to the reduced manpower, but development strategically located in equivalent specifications. With an offer our investors quality investments with Keppel’s Can Do spirit and the Tonghu Smart City in Huizhou, expected gross floor area (gfa) of and solutions.” Singapore’s fourth desalination plant, drinking water per day. It can treat either resilience, we worked closely with Guangdong Province, China. 486,700 sq ft, the data centre will the Keppel Marina East Desalination seawater or freshwater drawn from PUB and our contractors to overcome be developed in two phases, with Mr Wong Wai Meng, CEO of Keppel Data Plant (KMEDP), commenced commercial the Marina Reservoir, strengthening these challenges and deliver a Alpha DC Fund, which is managed by completion expected in 2021 and Centres, said, “Keppel Data Centres’ operations on 29 June 2020. Marina Singapore’s water supply resilience in successful project.” Alpha Investment Partners Limited 2022 respectively. In addition, the collaboration with Country Garden, and East Water, a wholly-owned subsidiary the face of increasingly dry weather (Alpha), will invest approximately RMB data centre site also has the potential local data centre operator, Huateng Co., of Keppel Infrastructure, will undertake conditions caused by climate change. The plant is set against the stunning 1.5 billion to acquire Huizhou Bike to build up another 538,200 sf to its will allow us to strengthen our local plant operations for a 25-year concession In dry weather, KMEDP draws water backdrop of Singapore’s central and develop the data centre. Country gfa, which would bring the total gfa to network and know-how. Coupled with period from 2020 to 2045, under from the sea for desalination. When it business district skyline, along the Garden, one of China’s leading property approximately 1,024,900 sf. our extensive experience in developing the Design, Build, Own and Operate rains, the plant utilises rainwater from cyclist-friendly Eastern Coastal Park developers, will harness the rich and operating data centres globally, arrangement with PUB, Singapore’s the reservoir to produce potable water, Connector Network. It incorporates technical capabilities and experience of Mr Alvin Mah, CEO of Alpha, said, this collaboration will allow us to deliver National Water Agency. requiring less energy and fewer steps in environmentally friendly elements Keppel Data Centres and undertake the “Demand for quality data centres a safe, reliable and high specification the treatment process than desalination. within its landscaping, such as construction of the core and shell of the has been increasing rapidly with the data centre facility for customers in KMEDP, Singapore’s first large-scale, rainwater harvesting ponds and data centre. expansion of the digital economy the Greater Bay Area. The project will dual-mode desalination plant, is capable Mr Ng Joo Hee, Chief Executive, PUB, stormwater management systems, globally. Alpha DC Fund is pleased to also contribute to the upgrading of of producing 137,000 cubic metres said, “Seawater desalination is one of for reuse in irrigation and the facility’s In addition, Keppel Data Centres will be able to capitalise on such growth information infrastructure and economic (about 30 million gallons) of fresh Singapore’s ‘four national taps’. Unlike the water features. also collaborate with local data centre in the Asia Pacific region through development in Huizhou.” 22 23

Sustainability at the core

Keppel is placing sustainability at the core of its strategy and making sustainability its business. Keppel Corporation published its 2019 sustainability report in May 2020, to communicate the Company’s sustainability strategy and performance. Separately, Keppel Land has also published its sustainability report to showcase how the company provides sustainable real estate solutions. Keppelite shares highlights from both reports.

“For companies, COVID-19 has Keppel Corporation 2019 Highlights intensity, as well as invest in underscored the importance of • Keppel Corporation has updated and renewable energy generation. The looking at long-term risks, having refined its sustainability reporting Company has been tracking its comprehensive business continuity framework and material environmental, Scope 1 and 2 emissions since 2010 plans, and ultimately of building social and governance (ESG) factors, and and has started tracking its Scope 3 sustainable businesses that remain has elevated environmental stewardship emissions in 2020. resilient amidst adversity and can as a strategic pillar in its sustainability respond nimbly to unexpected framework. It has also included climate • Energy efficiency initiatives developments,” shared Mr Loh Chin action as a material ESG factor. implemented across the Group in Hua, CEO of Keppel Corporation, in his Environmental sustainability has also 2019, including green initiatives Energy efficiency initiatives implemented across the Group in 2019, including green initiatives implemented at Keppel Land’s Green Mark-certified developments, are estimated to have saved 862,264 GJ of energy, equivalent to 44% of the Group’s total energy consumption in 2019. Keppel Bay Tower (pictured) is one such message to stakeholders. implemented at Keppel Land’s been woven into the performance development. appraisal of senior management across Green Mark-certified developments, Mr Loh said, “While COVID-19 is currently the Group. Keppel would also put its are estimated to have saved the focus of media and public attention, engineering capabilities to work on 862,264 GJ of energy, equivalent climate change remains one of the most solutions to combat climate change, and to 44% of the Group’s total energy serious challenges facing the world today. in the process, also create new business consumption in 2019. Leading green developer Like COVID-19, it transcends borders opportunities for the Group. and can fundamentally transform the • Keppel invested over 580,000 hours world as we know it. Unlike COVID-19, • Keppel Corporation set a goal in 2014 training and developing its global Separately, in his message to 2020 ahead of time, the company has leases. This is a demonstration of its its impact may be even greater, more to reduce carbon emissions intensity by talent pool, tapping digital platforms stakeholders in Keppel Land’s set a higher target of a 40% reduction commitment to work with tenants to devastating, and longer lasting. There is 16% from 2020 business-as-usual levels. for faster and better reach. Sustainability Report 2019, Mr Tan below 2010’s level by 2030. Meeting provide energy-efficient, resource- no quick fix or vaccine for climate change. In 2018, the Company set a longer-term Swee Yiow, CEO of Keppel Land, the 40% reduction target will result in a efficient and healthier interior spaces Efforts to combat climate change require target to achieve a 28.8% reduction in • The Keppel Group also invested shared, “Keppel Land is committed cumulative reduction of almost 140,000 for building occupants. Adopting coordinated and sustained international carbon emissions intensity from 2010 $9.6 million on worthy social causes, to supporting the United Nations tonnes of carbon emissions. the practices specified in the green effort, long-term commitments, and levels by 2030. Both targets are aligned and Keppel Care Foundation, the Sustainable Development Goals leases effectively helps tenants meet trade-offs that we must each be prepared with national goals set by the Singapore Group’s philanthropic arm, has through responsible business practices • Keppel Land also aims to reduce its all the requirements of the BCA-HPB to make.” government in 2009 and 2015 disbursed over $44 million to worthy as well as the development and energy and water intensities by 30% Green Mark (for Healthier Workplaces) respectively. In Keppel Corporation’s causes since its launch in 2012. management of low-carbon buildings. below 2010’s level, and also aims to Certified standard. Mr Loh reiterated that Keppel will avoid report, it shared that as at end-2019, the Separately in the year, employee We will continue to sharpen our focus increase the amount of green materials highly pollutive businesses such as Company achieved a more than 30% volunteers across the Group in on innovation to provide smart and used to 50% by 2030. In addition, the • Keppel Land embraces innovation and coal-fired plants and focus more on average reduction in carbon emissions Singapore achieved over 18,000 sustainable real estate solutions, which company has also set high Green Mark has set a target to invest, on average, renewables and cleaner energy such intensity from its 2010 baseline, and hours of community service and contribute to climate action.” targets for its developments. 2% of the company’s annual profit to as gas. It will also include an internal is well on track to achieving its 2020 brought cheer to more than 3,500 support sustainable development by carbon price in the evaluation of all target. The Company will be reviewing beneficiaries. Since the start of the Keppel Land 2019 Highlights • As a sustainable landlord, Keppel Land 2030. In 2019, it launched the K-Lab major investment decisions. For existing its targets to see if it is able to do even COVID-19 pandemic, Keppel has • Keppel Land’s carbon emission actively does its part to encourage initiative, with the aim to drive a culture businesses and assets, the Company will more to reduce emissions. also committed more than intensity in 2019 was about 22% its tenants to adopt green practices. of innovation among staff through focus on enhancing energy efficiency, $5 million to support Singapore and below 2010’s level. Having met its In 2019, the company achieved 100% seed funding for innovative ideas. The including harnessing renewable energy • Keppel has set new long-term targets to international efforts to combat the target to reduce carbon emission participation from all its office tenants company has committed to invest where possible. reduce waste and water consumption coronavirus. intensity by 16% from 2010’s level by at Keppel Bay Tower in signing green $500,000 annually in this programme. 24 25

Harnessing technology in the new normal New FPSO contracts secured

Countries worldwide are transitioning also discussed how the COVID-19 Keppel Land’s pandemic response Keppel Offshore & Marine (Keppel O&M) In Brazil, Keppel O&M’s BrasFELS shipyard safety measures to ensure the safety of towards a new normal amid the COVID-19 situation has increased the imperative plan, using Ocean Financial Centre has, through its wholly-owned subsidiaries has been awarded a topside module our staff and customers, while leveraging situation, where social and economic of harnessing technology for the global as a case study. The building in Singapore and Brazil, secured two fabrication contract for FPSO Almirante technology and innovation to ensure that life can function albeit under controlled real estate industry. Keppel is a strategic management team has harnessed contracts worth a combined value of Barroso MV32 for the Buzios field in our operations can continue in a safe and measures. Singapore businesses reopened limited partner in a fund by Fifth Wall. technology, including the deployment about $73 million from MODEC Offshore the Santos Basin, off the coast of Rio de efficient manner.” gradually under eased restrictions which of robots as safe distancing Production Systems (Singapore) Pte Ltd Janeiro, Brazil. With its delivery scheduled took effect from 2 June 2020. Separately, in end-May 2020, the ‘officers’, stepped up cleaning at (MODEC), a MODEC, Inc. group company. for 4Q 2021, the vessel will be capable of Mr Anthony Quinn, President and Singapore Green Building Council common spaces, particularly areas processing 150,000 barrels of oil and COO of MODEC Offshore Production In June 2020, as part of Fifth Wall’s organised a webinar during which with high human contact, as well In Singapore, Keppel Shipyard has 212 million standard cubic feet of gas per Systems (Singapore), said, “Keppel has webinar series ‘Fly on the Wall’, Mr Louis developers and building operators as implemented safe distancing been engaged to fabricate, complete day, with a minimum storage capacity of been a trusted partner for MODEC. Lim, Chief Operating Officer of Keppel shared best practices implemented in measures in lifts and common and integrate the topside modules and 1.4 million barrels of oil. Their expertise, experience and Land, spoke with Brendan Wallace, preparation for the return to work. areas. Home to firms such as BNP mooring support structure for a Floating reliability as a solutions provider both in Co-Founder and Managing Partner Paribas, ANZ and Drew & Napier, Production Storage and Offloading vessel Mr Chris Ong, CEO of Keppel O&M, said, Singapore and Brazil have contributed of Fifth Wall, a venture capital firm, on Mr Wong Wai Foo, Head of Property Ocean Financial Centre is a Grade A (FPSO). Slated for delivery in 2Q 2021, the “We have built a solid track record of 11 to our success as a leading provider of why sustainability and innovation are Management at Keppel Land, shared eco-icon in the heart of Singapore’s FPSO will be equipped to process 90,000 projects completed with the MODEC quality floating production systems. We core to Keppel Land’s strategy. They with participants of the webinar on financial centre. barrels of oil and 75 million standard group of companies over the years. have confidence in Keppel’s track record cubic feet of gas per day, with a storage Against the backdrop of COVID-19, and ability to deliver in spite of the current capacity of 700,000 barrels of oil. Keppel O&M has implemented enhanced challenging environment.”

Remote survey of offshore rig

As the industry’s first shipyard AssetCare collects data from a recognised by the American Bureau range of sensors to track equipment of Shipping (ABS) to have integrated performance and structural health, smart functions into rigs, Keppel increasing efficiency during operations. 1. The building management Offshore & Marine (Keppel O&M) With AssetCare, the rig achieved 1 of Ocean Financial Centre leverages the Industrial Internet of Things significantly increased uptime. implements robust prevention and control measures at the to support remote surveys and provide Virtual support from experts reduced office building to reduce the real-time virtual monitoring services maintenance costs and the need for transmission of COVID-19. through its AssetCare Digital Solution. onsite inspections and verifications. 2. AssetCare collects data from Such services support social distancing a range of sensors to track efforts amidst COVID-19. Workforce safety, operational equipment performance and continuity and connectivity amongst structural health, increasing efficiency during operations. In May 2020, Keppel O&M completed a stakeholders also improved. remote survey from Singapore to certify AssetCare has demonstrated that that Cantarell III, which is operating in certain operating practices can offshore Mexico, was fit for service. The not only be conducted remotely, survey was as part of an annual survey but in a more expedient, safe and on Smart Notation with ABS. Delivered by environmentally friendly manner. This Keppel O&M in 2019, Cantarell III is one of is particularly useful in light of current the industry’s first drilling rigs with Smart travel restrictions put in place by 2 Notations equipped with AssetCare. countries due to COVID-19. 26

Singapore’s first LNG bunkering vessel

Further advancing its solutions in Liquefied at Keppel Nantong Shipyard and is on FueLNG’s bunkering vessel will Natural Gas (LNG), Keppel Offshore & schedule to be completed in 4Q 2020. also enhance the LNG bunkering Marine (Keppel O&M) on 28 May 2020 The vessel will enable FueLNG to be the infrastructure in Singapore and support launched Singapore’s first LNG bunkering first in Singapore to provide regular ship- the growth of the industry through the vessel currently being built for FueLNG, a to-ship LNG bunkering services within development of best practices such as joint venture between Keppel O&M and the Singapore port. It supports initiatives technical standards. The expansion of Shell Eastern Petroleum (Pte) Ltd. implemented by the Maritime and Port LNG bunkering infrastructure will create Authority of Singapore (MPA) to increase more opportunities in adjacent sectors Construction of the LNG bunkering the adoption of LNG as a marine fuel, in Singapore, such as ship design, vessel, which has a capacity of 7,500 facilitating the growth of Singapore as a construction, operation and repair, as well cubic metres, is progressing smoothly global LNG bunkering hub. as LNG trading.

Tianjin Eco-City’s first smart estate

As a leading developer, Keppel Land support the Eco-City to create a highly in fitness facilities, waste sorting stations, provides smart and sustainable real liveable, smart and sustainable community. WiFi-enabled benches, smart speakers, estate solutions that contribute to Seasons Heights has incorporated 30 as well as a running track that can provide sustainable urbanisation. At the 4th World smart technology applications in the data to support runners in achieving their Intelligence Congress, Seasons Heights, estate and in residents’ homes, including fitness goals. a residential project developed by Keppel Land in the Sino-Singapore Tianjin Eco-City (Eco-City), was showcased as the Eco-City’s first smart estate and one of its six ‘Smart Scenarios’. Held in Tianjin, China, on 23 and 24 June 2020, the Congress is a high-level global event in the field of intelligence science and technology.

Mr Ben Lee, President of Keppel Land China, was invited to speak at the Congress’ China-Singapore Smart City Forum. Mr Lee shared how Keppel, as a provider of solutions for sustainable urbanisation, leverages its capabilities to

Seasons Heights is the Sino-Singapore Tianjin Eco-City’s first smart estate. 27

5G revolution

As a provider of connectivity solutions, M1 is involved Enhancing connectivity in national efforts to build an open and inclusive 5G innovative ecosystem that will sharpen Singapore’s M1 has been a front-runner in developing competitive advantage as a connectivity hub. and testing the use of 5G through strategic partnerships with government agencies and leading players in the On 24 June 2020, M1 and StarHub industries such as media, tourism, consumer and enterprise segments. were granted the final 5G network and e-sports. For leading smart license award from the Infocomm cities like Singapore, 5G is a crucial On the enterprise front, M1 announced Media Development Authority milestone to enable interconnected a partnership with IMDA, Maritime and (IMDA), following the completion of infrastructure that enhances Port Authority of Singapore (MPA) and the required regulatory processes. the convenience, liveability and Airbus to conduct coastal 5G standalone efficiency of our space. 5G will also (SA) network trials at the Singapore With the final award of the 5G be able to bring about a digital future Maritime Drone Estate in June. These network licence, M1 will start to with game-changing and endless live environment trials aim to ensure roll out its 5G network coverage new possibilities. unmanned aerial vehicles can operate across Singapore. With high safely and efficiently during all phases network speeds, ultra-low latency, Mr Manjot Singh Mann, Chief of their flights, including operations in enhanced network resiliency and Executive Officer, M1, said: “The the designated drone-fly zones. This security, as well as complex end- development of Singapore’s 5G continues Singapore’s efforts to build to-end slicing, 5G is a new frontier network is an exciting mission that an open and inclusive 5G innovative in communications technology that inspires and motivates all of us at ecosystem around the use cases of port will drive forward Singapore’s digital M1. We are thankful for the trust operations, and incident management economy. that IMDA has placed in M1 and will and response. continue to work closely together M1 has also selected Nokia to be with IMDA and StarHub to deliver a Working 5G technology into everyday the vendor to build the network core successful 5G story for Singapore. lives, M1 leveraged a 5G SA network to of the 5G infrastructure. As for the We are already witnessing 5G’s livestream drone footage at this year’s deployment of localised networks transformational role in various Chingay parade and enhanced the operating in the mmWave spectrum, sectors, such as the manufacturing, Haidilao customer experience through M1 will be looking to work with maritime and F&B industries. a customised automatic soup base multiple network vendors which Coupled with further cutting- preparation machine and service robots will include Ericsson, Nokia and edge technology, 5G will be the at Haidilao’s new smart restaurant. Huawei, based on specific use case backbone and drive the next bound requirements. of Singapore’s digital economy, In May, M1 collaborated with SGInnovate reinforcing its position as the region’s to encourage innovation in uses of 5G’s hyper connectivity and ability technology and connectivity hub. 5G for startups. M1 also embarked on to carry massive connections Singapore’s first 5G Industry 4.0 trial with simultaneously will not only enable “The 5G rollout will also enable the IBM, IMDA and Samsung to develop, better connectivity experiences delivery of new, innovative products test and roll-out innovative solutions for consumers, but will also spur and services to consumers, across various industries, in particular the further innovative journeys for the enterprise and government, which manufacturing industry, to enhance smart government and enterprises. The will boost the economy and lead to manufacturing processes. faster network will unleash the creation of job opportunities. Future power of interactive and immersive investments will be focused to keep experiences, and bring about M1 at the forefront in Singapore’s 5G revolutionary advancements for ecosystem,” added Mr Mann. 28

Spotlight on: Mr Manjot Singh Mann

Since the privatisation of M1 in 2019, M1 has been transforming itself through a multi- pronged strategy of innovation, technology adoption and digitalisation, while seizing opportunities to deepen collaboration with other parts of the Keppel Group. In the latest instalment of interviews with Keppel Group senior management, Keppelite speaks to Mr Manjot Singh Mann, CEO of M1, who shares on his journey with M1 thus far.

Q. What attracted you to join M1 and That stayed with me, because, despite been pigeonholed to their role as what do you think is the most important the evolution of the telco industry “download pipes”. challenge that M1 faces? since 1999, when I first joined the telco industry, the discussions surrounding So, when a headhunter spoke to In 2018, I was watching a movie in a telcos have largely been defined by the me and told me that a Singaporean cinema when I came across a pre- download speeds of data. Sadly, telcos, telco, which had a great legacy of show advertisement in which a telco in general, have only been offering innovation and achieving many highlighted that its network had the bigger data bundles at lower prices, “firsts” in Singapore, wanted to fastest 4G speed. and consequently they have largely transform itself, I was very interested. 29

When the Chairman of M1 shared technology-led start-ups to us. We then Solutions which I mentioned earlier, as his vision of M1 with me, and as the bring the tech to them to try. part of the Group’s “hunting as pack” discussion moved to how telcos strategy, M1 has been looking at ways should grow beyond providing basic On the enterprise side, we also have to collaborate with Keppel Electric and connectivity, I knew that it was a various tie ups with PSA, SUTD, IMDA City Gas to cross sell services, given perfect match for me – in terms of what and Airbus, as well as other tie ups that these are the Group’s consumer I have been wanting to do, and what I within the Keppel ecosystem – such as touchpoints. think a telco should do. the smart yard project, where we are looking at ways to enhance workplace Another great opportunity for M1, is the Q. What are a few key changes safety through the deployment of joint exploration between Keppel Data implemented over the past one and a wearable smart devices, as well as the Centres and AsiaPac, a wholly owned half years? autonomous tugboat project. In addition, unit of M1, on hybrid cloud data centres we are providing the analytics for the solutions, which will allow organisations To carry out a transformative change, it is Saigon Sports City project in Ho Chi to fast-track their digital transformation. first necessary to assemble a team that Minh City, Vietnam. can help you to carry this out. Q. If you were not running M1, what We all know that 5G is not just about would you see yourself doing? Second, I relooked at the organisation high download speeds. It also has structure, as that had to adapt to the new low latency and high resiliency, which The reason why I joined M1 was because ways of working, because we are creating enables more possibilities for machine technology excites me. If I had not a new organisation in many ways. to machine communication. So the joined M1, I would probably be running challenge and the opportunity here a technology start up with the aim of Third, for the people who are with us - we is - how do we tap these attributes creating a technology platform. I believe had to reskill and retrain them so that and create a more vibrant digital that it is the future, and it is going to they can be part of our future. I believe Singapore? define everything - the way we eat, the that everyone has this intrinsic desire way we travel, the way we interact with to learn, and if we are able to provide Q. With more than 10 telcos in Singapore, friends, the way we think. that opportunity, then we will create a including the MVNOs, some observers workforce that will be adaptable and have opined that the Singapore market is I think we have barely scratched thrive in the future. very saturated. How does M1 intend to the surface. For instance, I think the stay ahead of the pack? possibilities for AR/VR are immense in And finally, one of my priorities is the many areas, such as education, where we digitalisation of M1 and the creation of a I believe the challenge for the market can teach children sitting in classrooms “digital first” telco. This is driven in part will be how you differentiate – and I do what Notre Dame looks like, and they can because our customers are changing and not think the differentiation will be on be “situated” in the building virtually! increasingly want to be served digitally. how cheap your services or how fast your download speeds are. I believe that Q. What do you do in your free time? Q. Having been awarded the joint rights the differentiation will be in the way the to operate the upcoming 5G network consumer is served, in the manner that I like sports. I used to play national-level in Singapore, how do you see M1 they want to be served. Gone are the badminton in the past in India, but now I participating in the 5G space? days where you can believe in a “one play squash a lot. Squash is my first love. I size fits all” model. Consumers want their also play golf quite a bit. I am delighted that M1 has been at products to be personalised. For M1, we the forefront of the 5G ecosystem in are making inroads in this regard. I love to do some pencil and charcoal Singapore. This is because we started sketching, which includes portraits of believing in 5G and what it could do, Q. How has M1 been interfacing and people, in my free time. not just for consumers, but also for synergising with the rest of the Keppel enterprises in Singapore. Group? Can you share some examples of Q. What is your favourite food? collaboration? On the consumer side, we tied up earlier I love to eat dumplings with chilli sauce, on with Haidilao, where we looked at a Besides the collaboration on 5G whether it is siew mai or wonton. I love robotic restaurant. We also have a tie up technology with Keppel Offshore & them so much that I can eat them for with SGInnovate, which helps to bring Marine, Keppel Land and Keppel Urban breakfast, lunch and dinner! 30 31

Reducing carbon footprint of data centres 2

As a leading designer, developer and Singapore’s key industries such as energy, hydrogen infrastructure is part of our operator of data centres across Asia chemicals and construction. strategy to work towards decarbonisation. Pacific and Europe, Keppel Data Centres We are happy to collaborate with is committed to drive sustainable Mr Thomas Pang, CEO of Keppel Mitsubishi Heavy Industries and tap on solutions for the industry. Over the past Telecommunications & Transportation, their vast experience and technology few months, the company has furthered said, “The CCUS technologies are capabilities in our journey.” its efforts in reducing the carbon footprint scalable and can potentially be of data centre operations. implemented in Keppel Data Centre’s The use of hydrogen as an energy source local and overseas operations, as well can potentially be more environmentally Carbon capture as other parts of the Keppel Group, thus friendly as the combustion of hydrogen In July 2020, Keppel Data Centres signed contributing to the circular economy and does not produce greenhouse gas a Memorandum of Understanding advancing climate action.” emissions. In addition, as a tri-generation (MOU) with Chevron, Pan-United and plant produces heat, power and cooling, Surbana Jurong, with the support of the When commercially viable, the CCUS a tri-generation plant-supported data National Research Foundation, to harness technologies are expected to help reduce centre can not only tap on the electricity combined resources and jointly develop carbon intensity across industry sectors produced by the plant, thereby reducing the first end-to-end decarbonisation and help Singapore achieve its emissions its reliance on the national grid, but also process in Singapore. reduction targets. tap on the chilled water produced to cool the data centre’s systems and facilities. This collaboration is aimed at accelerating Hydrogen infrastructure the development of a highly integrated In June 2020, Keppel Data Centres and As part of the MOU, Keppel Data clean and energy efficient Carbon Capture, Mitsubishi Heavy Industries Asia Pacific Centres and MHI-AP will also explore Utilisation & Sequestration (CCUS) system Pte Ltd (MHI-AP) inked an MOU to jointly producing hydrogen fuel for the tri- that can lead to a low-carbon economy explore the implementation of a hydrogen generation plant through the steam and potential commercial developments powered tri-generation plant concept for methane reforming (SMR) process. First sustainability-linked loan for Singapore. The partnership will develop data centres in Singapore. By incorporating carbon capture and CCUS technologies that are readily storage capabilities, both parties will in the energy sector applicable, with high technical readiness Mr Wong Wai Meng, CEO of Keppel seek to ensure that the process is and cost efficiency to implement in Data Centres, said, “The exploration of carbon neutral.

On 24 June 2020, Keppel Infrastructure emissions intensity against national loan facility will help us to proactively

1. One of the possible Trust (KIT) and Keppel Energy Pte Ltd (KE), indices, as well as demonstrating drive best-in-class practices and support 1 projects that might through a joint venture, secured a 7-year continuous improvement in the plant’s the performance of KMC as we build benefit from the $700 million sustainability-linked loan from carbon emissions intensity. If these a sustainable future together with our hydrogen powered tri-generation plant DBS Bank and OCBC Bank for its jointly- pre-set targets are met, the interest stakeholders.” concept is the floating owned gas-fired co-generation plant, rate on the facility will be subsequently data centre park project Keppel Merlimau Cogen Plant (KMC). reduced on a tiered basis. Ms Janice Bong, General Manager (pictured) in Singapore that Keppel Data (Energy Infrastructure) of Keppel Centres is currently The loan is one of the largest Mr Matthew Pollard, CEO of Keppel Infrastructure, the parent company of KE, pursuing. sustainability-linked loans in Singapore Infrastructure Fund Management, said, “Keppel is committed to reducing

2. KMC’s (pictured) and the first such loan for Singapore’s the Trustee-Manager of KIT, said, our environmental impact by focusing landmark transaction energy sector to date. The transaction “Sustainability is an essential part of the on enhancing efficiency and reducing is one of the largest also marks KIT and KE’s maiden Trust’s strategy and operations. Beyond the carbon footprint of our operations. sustainability-linked loans in Singapore and sustainability-linked loan. adopting high environmental, health As owners and operators of KMC, we are the first such loan for and safety standards for the businesses constantly looking for ways to optimise Singapore’s energy The loan is linked to carbon emissions and assets in our portfolio, we are also operations so that the plant minimises its sector to date. targets for KMC, which include strengthening our commitment to carbon emissions, while ensuring reliable benchmarking of the plant’s carbon sustainability through financing. This power generation for Singaporeans.” 32

The District Cooling System in the heart of Bangkok will address the cooling needs of the surrounding developments in a greener and more eco-friendly way.

Keeping it cool

A consortium comprising Thai renewable The DCS plant has a projected cooling developing and operating district cooling energy company, BCPG Public Company load of 18,000 refrigeration tonnes to and heating systems in Singapore and Limited, Singapore’s Keppel DHCS Pte serve eight office, retail and residential China to offer our first sustainable solution Ltd (Keppel DHCS) and Thai engineering developments in the prime Sam Yan for cooling in Thailand together with our consultancy, TEAM Consulting commercial area as part of the visionary partners. This project will deepen our Engineering and Management Public Chula Smart City Project which seeks to understanding of the Thai market and help Company Limited, was awarded a contract sustainably rejuvenate and redevelop the establish a foothold for us to seek further worth more than THB 7.5 billion (S$329 heart of Bangkok. The first phase will be opportunities in Thailand.” million) by the Property Management of operational in the fourth quarter of 2022, Chulalongkorn University for a District and the DCS plant is expected to be fully As one of the first private district cooling Cooling System (DCS) on 23 July 2020. completed in 2027. projects in Thailand, the new DCS will pave the way for more sustainable cooling The consortium will form a joint venture Mr Chua Yong Hwee, GM of Keppel solutions given the country’s high demand (JV) to design, build, operate and transfer DHCS, said, “With the increasing for cooling all year round. The energy- the core and shell of the DCS plant, as international focus on sustainability, efficient and space-saving attributes of well as design, build, own, operate and coupled with the mounting density of DCS allow it to address the needs of cities transfer the DCS assets. Keppel DHCS’ urban populations, we see the growing and developments in greener and more shareholding in the JV will be 26%, and will need for sustainable infrastructure such as eco-friendly ways, by aggregating the lead the operations and maintenance of district cooling. We are pleased to leverage energy loads of a cluster of buildings to the DCS plant for 20 years. our strong expertise and track record in reduce the overall carbon footprint. 33

The OneKeppel differentiator Design thinking in end-to-end master development

As an end-to-end master developer, Keppel Urban Solutions (KUS) brings together the Group’s diverse capabilities to create highly liveable, smart and sustainable communities. In the planning and development of large-scale integrated projects in the Asia-Pacific, KUS has leveraged design thinking to gain a competitive advantage. Keppelite spoke to Ms Cindy Lim, Director of Group Corporate Development and Managing Director of KUS, to understand how applying design thinking enables Keppel to differentiate itself in the market.

A model for master development reliable partner. That said, in competing 2018 involving surveys, focus groups and In master development, a single internationally for master development workshops during its pre-development developer is given the flexibility to projects, it is important that we continue to phase. KUS tested the ideas on a plan and develop an entire precinct. innovate and up our game. Human-centric potential buyer pool and identified the top Compared to allocating land on a plot-by- design thinking serves as an enabler in the 10 game changers to be implemented. plot basis, this approach can help achieve early stages of our master development These include biophilic design, signature better integration between buildings and process. It not only assists us in innovating programming, co-living and co-working public spaces, connectivity and amenities, new products, services and experiences to spaces, an integrated lifestyle hub, and a and contribute towards building stronger address our stakeholders’ needs, but also smart city operating system. precinct identity and local communities. helps us uncover new needs and create new markets, “ said Ms Lim. “Many times, when we develop a product “Keppel is well placed to capture or solution, we tend to think of what the sustainable urbanisation opportunities Ms Lim remarked that in master planning, it customer wants at a functional level. arising from the end-to-end master is important to take a holistic view of each Design thinking helps us to push this development value chain, with our city’s needs and understand its culture and understanding further, beyond function and trademark approach of harnessing the context. “Every city is unique, and like a convention, to understand our consumers’ strengths of our business units’ diverse fingerprint, no two are alike. Human-centric emotional needs. For instance, in response capabilities. Our business model also design thinking is data-backed. Immersion to our surveys on what consumers desire gives us the flexibility to tap the expertise in the customer experience produces data, in a property, we may receive feedback of best-in-class ecosystem partners. which is in turn transformed into insights. that consumers prefer a gated compound Additionally, through Keppel Capital, we These insights, combined with business with a security guard house. If we probe are able to access private funds and be acumen, allows us to differentiate our further, we can pick up nuances and more bold in our pursuit of large scale solutions and create value. The value that understand our target audiences’ innate development projects,” Ms Lim shared. we can create and accrue will lead to an need for security for their family. This allows increase in the valuation of our landbank us to deliver contextualised solutions that Enhancing competitive advantage and real estate in the long term, and are future-proofed and differentiated from Design thinking is a structured method enhanced returns for the Group.” cookie-cutter products in the market,” Ms for innovation, and a process in which Lim explained. one seeks to understand and empathise An example in point is Saigon Sports City with the consumer. Problems are (SSC), a 64-hectare site in Ho Chi Minh She concluded, “As stakeholders addressed in human-centric ways, and City which is being developed by Keppel participate in co-designing the data analysis, experimentation and testing Land and KUS into a first-of-its-kind, environment where they live, learn, work are used to devise optimal solutions. sports-oriented township. and play, they will also develop a stronger sense of community and belonging to “Keppel is well reputed for its engineering Over 150 innovative ideas for SSC were their neighbourhood, which translate to capabilities, and as a trusted and raised during an ideation process in higher intrinsic value.” 34 35

The OneKeppel Differentiator – Synergy to deliver end-to-end master development

Masterplanning Integrating Project Marketing, Leasing & Precinct & Property Asset Consumer Solutions Management Operating Platforms Management Management Services

KEPPEL URBAN SOLUTIONS KEPPEL CAPITAL KEPPEL ELECTRIC, CITY GAS, M1 , • Visioning and ideation • Assess, identify and • Master plan and • Place identity and • District IoT asset • Fund and asset URBAN FOX • Environmental, procure smart and infrastructure plan branding of entire districts/ management and management • Competitive B2C transportation and land sustainable solutions coordination townships/precincts automation via smart city • Asset enhancements related to energy, operating system offerings for electricity, use planning • Traffic and environmental • Drive asset water, waste, mobility, gas, data, mobile and • Urban design impact assessment • Community applications performance through automation and robotics e-commerce • Public realm design • Data analytics and operational excellence • Smart infrastructure • Loyalty programmes insights • Risk management planning • Smart city operating KEPPEL LAND system • Design, procurement and • Branding and product • Placemaking and construction management positioning for vertical community programming developments KEPPEL INFRASTRUCTURE • Quality, safety, sustainability • Estate management standards and systems • Marketing and sales • Facility management • Infrastructure planning • Design of waste, strategies • Tenant/homebuyer in areas of expertise water and cooling • Commercial leasing engagement such as waste, water infrastructure solutions • Incorporate new and cooling operating platforms, KEPPEL Saigon Sports City leverages the site’s long river frontage and inner canal, as well as incorporates Singapore’s Active Beautiful Clean waters design principles including those in office, to transform the waterfront into a belt of attractive public spaces and activity nodes. TECHNOLOGY & residential, retail and INNOVATION senior living segments • Data science and analytics • Technological foresight • 3D printing

KEPPEL RENEWABLE ENERGY

• Low carbon solutions

M1

• 5G infrastructure • Technology consultant • Smart service platform provider 36 37 KEPPELITES AROUND THE WORLD

Smart logistics park in Tianjin Eco-City Firsthand experience of a dynamic China

The Sino-Singapore Tianjin Eco-City (Eco- When completed, the park will mainly Mr Tay Lim Heng, CEO of SSTEC, Berton Lim, Senior Manager at Keppel Land China, was posted to Shanghai in April 2018. Over the City) will see the addition of a new smart promote the “AI + Park” model – one in said, “GLP’s investment will provide logistics industrial park. GLP, a global which the management of the park will be plenty of employment opportunities past two years, he has experienced the fast-paced lifestyle in China, and embraced the rapid digital logistics and real estate industry leader, enhanced through information systems, for the Eco-City and inject more transformation that is shaping the China market. has secured two industrial land plots in Internet of Things, computer vision, big vitality into the economic and the Eco-City and plans to invest RMB 300 data and other technologies. industrial developments. At the million to build a smart logistics industrial same time, their advanced smart park there. Mr Li Zengyi, the person-in-charge of operation model will also support When presented the opportunity to that project to date. This vindicates our 2 GLP Tianjin, said, “The Eco-City is an the construction of a smart Eco- take up a business development role in belief to go beyond the headline and The two land plots, with a total area of ideal choice for us to establish a smart Cit y.” Shanghai, Berton seized it without any focus on the bottom line.” about 8.44 hectares, were put up for public logistics industrial park, given its good hesitation. “I like meeting people from bidding in June 2020. The plots are located location, conducive business development SSTEC, the master developer for different backgrounds as there is always When asked about his thoughts on in the Eco-Innovation Park of the Eco-City, environment and preferential policies, the Eco-City, is a 50-50 joint venture something that I can learn from them. the impact of COVID-19 on China’s which is being developed by the Sino- as well as well-equipped smart city between the Singapore Consortium China is the biggest overseas market for property market, Berton shared Singapore Tianjin Eco-City Investment and infrastructure – all of which will contribute led by the Keppel Group and the Keppel Land, and I was eager to explore that Keppel Land China has been Development Co., Ltd. (SSTEC), and has a to the construction of our park and the Chinese Consortium led by Tianjin the business opportunities,” said Berton. undergoing digital transformation planning area of 175 hectares. rapid expansion of our businesses.” TEDA Investment Holding Co., Ltd. for the past few years, and the While Berton speaks and reads Chinese, pandemic has further demonstrated it was not easy for him to understand the importance of digital platforms the various technical terms when he first for seamless customer engagement started working in Shanghai. However, with in times of disruption. As Keppel the help of local colleagues, he was able to Land China continues its digital get up to speed with industry jargon. transformation journey, Berton hopes to work with even more developers Currently, Berton is the team lead of digital solutions to further enhance 1. The Eco-City will 1 see a new smart for Keppel Land China’s business Keppel Land China’s projects. logistics industrial development team in Shanghai, focusing park by GLP in its on deal execution, including financial Besides his core work, Berton is also Eco-Innovation Park. analysis, due diligence, structuring and the Vice President (China) of Keppel 2. Outside work, documentation. In the past two years, Young Leaders (KYL), which is part Berton enjoys Keppel Land China successfully closed of Keppel’s talent management playing floorball in Shanghai as it helps transactions that aided in the expansion framework that connects young him maintain an of its footprint to cities such as Nanjing leaders across the Keppel Group. active and healthy and Guangzhou. Berton was tasked to set up KYL’s lifestyle. China chapter and lead the team to When asked about the biggest satisfaction take on high-impact projects and from this stint, Berton said, “In 2018, champion meaningful causes in China. milestone with meaningful projects that there were some negative headlines in will contribute to the Group’s further the media about the property market in Berton shared, “To date, there are growth in China.” Nanjing, where we were considering a more than 30 KYL members in China joint venture project with a local partner. across five cities and three business Outside work, Berton plays floorball for Notwithstanding the negative coverage, units. Regular activities are being recreation. He said, “Interestingly, my team we decided to go ahead with the project organised for the members in China to has a mix of Chinese national players, and as we were confident about the Nanjing gain insights from senior management expatriates from Scandinavian countries. market, Keppel Land’s track record and and connect with their counterparts I like floorball because it is a sport that our partner’s strong local knowledge. I am in other countries. As 2020 marks requires not only speed, technique and pleased to share that we have sold more the 10th anniversary of KYL, we look skill, but also good teamwork – qualities than 90% of the total number of units for forward to commemorating this special that are vital to my work too!” 38

Mr Loh Chin Hua (top row, second from right), CEO of Keppel Corporation and Chairman of Keppel Land, Mr Tan Swee Yiow (top row, second from left), CEO of Keppel Land, and members of senior management (bottom row) at Keppel Land’s Annual Staff Conference webcast.

Keppel Land Annual Staff Conference Forging ahead with agility

Keppel Land’s Annual Staff Conference Chairman of Keppel Land, spoke on be agile to respond to new challenges (ASC) is an important event which serves the company’s performance and also and trends. He encouraged Keppelites as a platform for senior management to highlighted Keppel’s Vision 2030 to drive to be proactive in finding collaboration share the company’s strategic direction the company’s long-term strategy as well opportunities within the Keppel Group and performance with staff, as well as as transformation plans to propel Keppel’s and work together to emerge stronger provide updates on the various business growth as one integrated business and a than before. units and new initiatives undertaken. powerhouse of solutions for sustainable urbanisation. He also shared how Keppel Keppel Land’s senior management and ‘Agility as Core. Forge Ahead as One’ was will address long-term trends over the country representatives provided updates the theme for this year’s ASC. The event next decade, as well as actively develop on the company’s business operations this year was streamed ‘live’ on 2 July and invest in new growth engines. and performance in various markets, as 2020 due to restrictions on gatherings as well as action plans for Vision 2030. The a result of COVID-19. Close to 1,000 staff During the panel session, Mr Tan Swee panel sharing ended with an interactive from Singapore and overseas participated Yiow, CEO of Keppel Land, shared that question and answer segment. in the webcast. the COVID-19 pandemic has underscored the importance for Keppelites to continue One of the highlights this year was the In his opening speech, Mr Loh Chin to reinvent and retool themselves to stay K-Lab showcase. In 2019, Keppel Land Hua, CEO of Keppel Corporation and resilient and competitive, as well as to launched the K-Lab initiative, with the 39 KEPPELITES AROUND THE WORLD aim to drive a culture of innovation The K-Lab initiative among staff through seed funding for innovative ideas. The company has committed to invest $500,000 Launched in 2019, K-Lab is a platform for staff annually in this programme, and up to $50,000 for each idea. to explore innovative ideas that can enhance the performance of a process, person, team or Since September 2019, seven unique organisation, or improve customer satisfaction, reduce ideas have been endorsed and business costs and streamline business processes. granted funding. These ideas were presented by the respective teams and audience members voted for the Sea-bins Connected to an electrical, submersible most inspiring idea in an online poll. At Marina at Keppel Bay, due to the water pump and positioned where the Garnering the most number of votes, frequent accumulation of floating wind and the current can push debris the project by Keppel Land (Vietnam) trash brought in by the tides, into it, the sea-bins catch most floating emerged as the top idea and the manual removal of such debris debris, including plastics as small as team, consisting of Nguyen Thi Thu from the waters was both tedious 2mm in size. Water is pulled in from the Huong, Operations Manager (Retail), and time-consuming. Moreover, surface and passes through a catch and Nguyen Thi Bich Thuy, Customer there were several areas around bag fitted inside each sea-bin. The Service Supervisor, walked away with the floating pontoon that were bag traps debris and other pollutants, a $500 cash prize for participation inaccessible for manual cleaning. while the rest of the water is pumped and an additional $500 cash prize To circumvent this, floating sea- out and filtered back into the marina. for having their idea voted as the bins were installed at selected This ensures that the marina waters most inspiring. Coming in at a close areas near its floating pontoons, are constantly kept clean. Each of the second was the ‘sea-bins’ project where debris and surface scum catch bags can hold up to 20kg of by Francis Alvin Lok, Manager, accumulate most frequently. debris. Operational Performance at Marina at Keppel Bay (see box story).

This year’s virtual ASC also featured the inaugural Keppel Land Pinnacle Agility Awards, where two Sea-bins can be found in the waters of Marina at Keppel Bay. They collect floating debris, including outstanding individuals from Keppel plastic waste and surface oils, ensuring that the waters are kept clean. Land China, namely, Vincent Zhu, Content Manager, LivingX/RetailX, and Wang Cheng Hong, Deputy Manager, Smart Development, were recognised for exhibiting agility at work. 36 Long Service Award recipients were also recognised for their dedication and valuable contributions to the company.

Commenting on the 2020 Keppel Land ASC, Tan Li Hong from Project Management, Keppel Land, said, “Even though this year’s ASC had to be conducted virtually, it was a very fruitful session as we were kept abreast on Keppel Land’s business operations and performance in Singapore and overseas. I also found the segment on K-Lab innovations inspiring.” 40 41

1. Keppelites grooved to the COVID-19 pandemic response 2 beat of an energetic virtual Zumba fitness session in Supporting Keppelites June 2020. 2. The Chairman and senior management from Keppel O&M distributed care packages to local and Keppel is committed to help employees other business units also held their business units, aims to motivate Keppelites migrant frontline workers to show appreciation for adapt to the new normal of remote respective townhalls virtually. to maintain good health and wellness their contributions. working during the COVID-19 pandemic. while telecommuting. The Group-wide Engagement efforts initiated by the Building bonds Physical Wellness Month was held in various Human Resources departments Many business units initiated their own June, with healthy lifestyle challenges across the Keppel Group included virtual creative forms of engagement activities with for staff. Business units also organised townhall sessions, health and wellness staff. Keppel Land organised virtual meal online exercise sessions such as Zumba workshops, as well as deliveries of care sessions to encourage colleagues to catch up and kickboxing, as well as workshops on packs to staff. with each other over lunch despite working mindfulness and coping with stress. from home, while Keppel Capital organised Virtual townhalls online networking tea sessions among senior Medical teleconsultation services were Virtual townhall sessions were management and interns, which serve as launched to allow convenient access organised to keep Keppelites apprised a platform to share on the various career to medical assistance from providers. of developments at the Group. Keppel propositions available at Keppel. The Employee Assistance Programme Corporation organised a townhall for was also rolled out to provide mental Promoting holistic health staff on 9 June 2020 to share on Keppel’s health support for employees and their 2 Vision 2030, as well as other other Keppel’s Wellness Taskforce, comprising dependents. As part of the programme, engagement initiatives for staff. Various representatives across the various employees can tap on the services of

licensed counsellors from the Singapore Keppel Infrastructure arranged for weekly meals Counselling Centre for counselling and snacks to be delivered to staff at our plants sessions. to show appreciation to colleagues providing essential services during the pandemic. Showing care To keep morale high and encourage The Chairman and senior management of employees to stay positive during the Keppel Offshore & Marine (Keppel O&M) also circuit breaker in Singapore, Human distributed care packages containing household Resources arranged surprise deliveries essentials and snacks to local and migrant of care packs, cakes, herbal teas and fruit frontline workers to show their appreciation for baskets to employees. their contributions. 1 42

Nurturing talent

Building the workforce of the future Management Trainee (MT) scheme has Keppel Land (Vietnam) was selected from In recognition of Keppel Offshore groomed about 1,500 MTs since the over 300 shortlisted nominees across & Marine’s (Keppel O&M) efforts in establishment of the scheme in 1986. various industries in Vietnam. nurturing its workforce, the company Keppel O&M has also partnered these The companies were evaluated through was presented the Talent Development institutions and training providers to an independent survey that assessed Award at the 13th Seatrade Maritime Asia offer its employees virtual ‘live’ classes to criteria such as working environment, Awards on 23 June 2020. allow them to continue building skill sets employee engagement and teamwork. while working from home. Keppel O&M adopts a mix of Speaking at the award ceremony, Mr multifaceted development initiatives In 2019, Keppel O&M invested about Joseph Low, General Director, Keppel to cater to its global workforce. These $18 million in training and development Land (Vietnam), said, “At Keppel Land, include offering over 100 in-house programmes for staff, with each we recognise that people are our greatest technical, customised and advanced employee receiving an average of asset. As a pioneer and one of the largest certified programmes for employees, 35.8 hours of training. foreign real estate investors in Vietnam, as well as a collaboration with the we are committed to nurturing a diverse, various institutes of higher learning to Outstanding workplace nimble and dedicated talent pool that will provide participants with structured Keppel Land (Vietnam) was recognised create value and drive further growth for the career progression while allowing them as one of “the Best Companies to Work company. We also aim to create a vibrant to learn while on the job. Separately, for in Asia 2020” at the HR Asia Awards, and inclusive workplace where employees the company’s longstanding two-year organised by HR Asia Magazine. can achieve their career aspirations.”

1. Keppel O&M is committed to building a skilled workforce and continues to invest in training and development programmes for staff. (Photo taken prior to COVID-19 safe management requirements) 2. Keppel Land (Vietnam) was recognised as one of “the Best Companies to Work for in Asia 2020” at the HR Asia Awards. Pictured is Mr Joseph Low (left), General Director, Keppel Land (Vietnam), receiving the award on behalf of the company.

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Keppel O&M actively leverages technology such as augmented and virtual reality to improve and adapt its training programmes. (Photo taken prior to COVID-19 safe management requirements)

Continuous learning

The Keppel Group actively seeks ways to nurture and inspire its talent pool. Amidst the COVID-19 pandemic, various Keppel businesses continued to roll out a series of innovative learning initiatives to enable Keppelites to continue to improve their skillsets.

Harnessing technology for safety trainees to gain a deeper understanding E-learning journey In this digital age, the use of of work processes, and improves their Amidst COVID-19, Keppel People Services augmented reality (AR) and virtual technical core competencies. has launched a series of e-learning initiatives reality (VR) technology allow for Keppelites to expand their knowledge employees in the offshore and marine Keppel O&M also leverages VR to and pick up new skills. Keppelites are able industry to upskill in a realistic and heighten safety awareness among to select from a wide range of courses on safe environment. employees. At Keppel O&M’s safety online e-learning platforms such as Udemy journey hall, training sessions simulate and LinkedIn Learning, on topics that range Over 40 AR learning aids have been the scenarios that employees are from mindfulness and building resilience, produced by Keppel Offshore & Marine likely to face at work sites. Through to data analytics, blockchain, artificial (Keppel O&M) to enhance training simulations, trainees not only intelligence and machine learning. in piping, mechanical, electrical, hull learn safety procedures but also and scaffolding modules. Trainees the consequences of not adhering Keppel’s business units have also ramped can access the modules and interact to safety guidelines by virtually up efforts to promote e-learning among staff. with virtual 3D models using tablets experiencing the impact of falling from Keppel Capital offered a series of business provided by the Training Centre. This height, flash fires, and being hit by analytics workshops, while Keppel Land offered immersive learning experience allows moving objects. courses on essential digital skills and mindsets. 44 45

COVID-19 pandemic response that week while observing safe- contributions from Keppel Following the success of the sessions in May, distancing measures. Corporation. Keppel Capital volunteers launched another series of game sessions over June and July, A heart to serve Mr Loh said, “Our frontline healthcare Also in May, 15 volunteers from Keppel introducing new games such as Pictionary, personnel are working tirelessly to Capital engaged over 20 beneficiaries Wheel of Fortune, Taboo, Guess the Song keep us safe and fight against the virus from its adopted charity, Muscular and Spot the Difference to the beneficiaries. spread. Through the care packs, we hope Dystrophy Association (Singapore), Keppelites stepped up during this challenging period to meet community needs to bring them some cheer and show in five virtual game sessions, where Providing alternative accommodation through volunteer efforts and by deploying our solutions where they are needed. them our appreciation.” players competed in interactive In support of Singapore’s national efforts games, including Heads Up!, Quick to combat COVID-19, Keppel Offshore & Apart from the packing and delivering Draw! and Trivia?. The games raised Marine (Keppel O&M) and its associate of care packages, Keppel also the spirits of the beneficiaries who company, Floatel SE, worked with the sponsored weekly lunches of nutritious were staying at home due to circuit Maritime and Port Authority of Singapore Keeping the volunteer spirit strong bento sets over four weeks for the staff breaker measures. and PSA Singapore to deploy floating To show care and support to of Geylang Polyclinic. accommodation to temporarily house frontline healthcare heroes, Keppel Ms Christina Tan, CEO of Keppel healthy foreign workers. Volunteers delivered 200 care packs These efforts were part of the Capital, volunteered for one of to Geylang Polyclinic on 27 May comprehensive $4.2 million package the game sessions. She said, Built by Keppel O&M in 2016, the vessel 2020. The care packs were filled Keppel announced earlier in 2020 “Keppel Capital believes in uplifting has about 300 rooms and was previously with bottles of Vitamin C, heat pads aimed at helping the Singapore communities wherever we operate. deployed off the coast of Western and stretch bands together with community weather COVID-19. The This is a difficult time for many due to Australia. Since April 2020, the vessel a note of appreciation from the package is funded by voluntary the COVID-19 outbreak. By taking our has been docked in a restricted area at management and staff of Keppel. contributions from the Keppel Group’s community outreach efforts online, we Tanjong Pagar Terminal, allowing healthy Mr Loh Chin Hua, CEO of Keppel directors, senior management and hope to bring some cheer to MDAS workers to be progressively relocated in Corporation, and Mr Thomas Pang, staff, with dollar-for-dollar matching beneficiaries during this trying period.” batches. CEO of Keppel Telecommunications & Transportation (Keppel T&T), together with other staff volunteers from Keppel T&T, had joined the 1 care pack packing efforts earlier

1. The Chairman and senior 2 management of Keppel T&T, 3 together with other staff volunteers, helped to pack care packs for frontline healthcare heroes.

2. The virtual game sessions organised by Keppel Capital brought cheer to MDAS beneficiaries.

3. The floating accommodation vessel built by Keppel O&M is used to temporarily house healthy foreign workers amidst the COVID-19 outbreak. 46 47

Empowering lives

In December 2019, Keppel and New online shop to sew. They were taught by their parents SPD, a local charity supporting The team worked with SPD and a and I, too, wanted to learn. I am very persons with disabilities, launched consultant to refresh SPD’s product pleased to be part of this programme, a three-year partnership to enhance logo and expand the range of products which has enabled me to mend my own the SPD Sheltered Workshop offered by the charity. The products clothes when no one is around to help.” which provides employment and will be available via a new online shop, vocational training for people with which is slated to be launched in 4Q Keppel Volunteers and Keppel Young disabilities. The Keppel Group 2020. In addition, “Keppel-SPD Care Leaders also collaborated to kickstart pledged $500,000 to support the Corners” have also been rolled out in a series of workshops to equip SPD SPD Sheltered Workshop, helping Keppel’s offices to display and market trainees with important life skills. The first it to stay relevant, current and journals made by SPD trainees. session of the series was on financial 1 economically viable in the longer literacy, where participants were term. Enhancing skillsets, improving processes empowered with basic personal finance A new apprenticeship programme has knowledge. Keppelites also leveraged 1. With Keppel’s support, students are now 2 able to enjoy well-balanced and nutritious Over the course of 2020, Keppel been established to equip SPD trainees their digital and safety management hot meals at school. Young Leaders from across the with the relevant skills to craft the new skills to improve SPD’s training tracking Keppel Group have been actively products. system and equipment assessment list. 2. An upgraded kitchen equipped with industrial-grade kitchen equipment. engaging SPD to roll out various initiatives. The efforts focused Hamidah Binte Wahab, a trainee who has Keppel Young Leaders have also been 3. Hamidah Binte Wahab, a trainee of the on three areas, namely, branding been with the SPD Sheltered Workshop for working with SPD to improve processes SPD Sheltered Workshop supported by Keppel, acquired leather-sewing skills and marketing, an apprenticeship 17 years, shared her joy in acquiring leather- such as inventory management and last- through a new SPD apprenticeship programme and supply chain sewing skills through the apprenticeship mile delivery to enhance the operation of programme. management. programme. She said, “My late parents used the Sheltered Workshop. 4. Journals made by SPD trainees are displayed at Keppel’s offices to raise awareness of the SPD Sheltered Workshop and boost sales of its products.

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Hot meals and warm hearts

Ten remote village school kitchens in industrial-grade kitchen equipment like upgrades for the schools. Through Keppel’s Mabian County, Sichuan Province, China, electric stoves, rice steamers and water contribution, close to 2,000 needy students will be upgraded as part of Keppel’s heaters. Prior to the upgrades, students are provided with milk every school day. partnership with the China Foundation were provided with pre-packaged Over 1,300 students have also benefitted for Poverty Alleviation to provide aid to convenience snacks such as biscuits. from e-book readers sponsored by Keppel, impoverished rural communities. which are made available at school libraries. Keppel’s China poverty alleviation Upon completion of the upgrades, more programme, “Working Together for a Through these initiatives, Keppel aims than 1,300 students aged two to 16 will Brighter Future”, seeks to enhance the to equip local communities with the enjoy well-balanced and nutritious hot nutritional content of meals for students, resources to build a brighter future for the school meals, made possible with the new as well as provide educational and facility younger generation. 48

Caring for the environment

To mark Earth Day on 22 April 2020, office workers to cultivate environmentally Park, and introduced the green the Sino-Singapore Tianjin Eco-City friendly habits, and raised awareness developments and practices in the park. Investment and Development Co., of the green choices that people and The virtual tour, which was attended Ltd. (SSTEC) partnered with Chinese enterprises can make in an office setting. by over 13,000 people, showcased environmental protection organisation, These choices include using reusable green features in the park, including Friends of Nature, as well as local cups and cutlery, sorting waste, recycling, the central green corridor, the award- Chinese and international organisations, conserving energy and choosing greener winning Low Carbon Living Lab and including Vanke Foundation and Beijing modes of transportation. U-Farm. Viewers also learnt about green Television, to launch an online green initiatives such as waste classification office initiative. Separately, in line with World bins, green building technologies for Environment Day on 5 June 2020, saving energy and reducing carbon With the goal of promoting climate action, SSTEC held a virtual ‘live’ streaming emissions, roof farms and water-saving the initiative encouraged employees and tour of the Eco-City’s Eco-Business planting technologies.

Uplifting communities

Despite the challenges brought about by COVID-19, volunteers from Keppel business units in China are committed to uplift the lives of the less fortunate through local community initiatives.

Giving blood, saving lives A total of almost eight litres of blood were In Wuxi, volunteers from Keppel Land collected through the donation drive. China stepped forward to donate blood during a donation drive held in Supporting education collaboration with the Wuxi Red Cross On 24 July 2020, 20 volunteers from Blood Centre. Keppel Capital China, led by Mr Eric Goh, CEO (China) of Keppel Capital, visited the To ensure the health and safety of Shanghai Chongming Saffron Cultural Keppelites, a volunteer team worked Centre to donate over 100 books to the with the Wuxi Red Cross Blood Centre Soong Ching Ling Children Reading to organise a dedicated donation drive Room (Chongming Station). for Keppel Volunteers on the morning of 21 April 2020. During the duration of Established in Shanghai in 1946, the the drive, Keppelites and medical staff Soong Ching Ling Children Reading Room adhered to strict safety measures, which has 10 branches across China today. The Keppel Volunteers in Wuxi, China, donated blood included the wearing of masks and organisation seeks to uplift the lives of the during a donation drive held in collaboration thorough disinfection of the environment. underprivileged through education. with the Wuxi Red Cross Blood Centre.

Keppel Corporation Limited 1 HarbourFront Ave, Level 2, Keppel Bay Tower, Singapore 098632

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