GROUP OVERVIEW 2 KEY FIGURES
REVENUE NET (LOSS)/PROFIT MSCI ESG RATING $6.6b ($506)m AAA Decreased 13% from FY 2019’s $7.6 billion. Compared to FY 2019’s net profit Received the highest AAA rating in the Lower contributions from the Energy & of $707 million. Morgan Stanley Capital International Environment, Urban Development and Apart from Keppel Offshore & Marine, (MSCI) ESG ratings in February 2021. Asset Management segments were partly all key business units remained profitable Ranked among the top 8% of global offset by higher revenue from Connectivity. in FY 2020. Excluding impairments of industrial conglomerates, based on $952 million mainly due to the offshore environmental, social and governance & marine business, the Group’s net profit (ESG) criteria, in the MSCI All Country was $446 million for FY 2020. World Index. Keppel has held the rating since February 2020.
RETURN ON EQUITY (LOSS)/EARNINGS PER SHARE EMPLOYEE ENGAGEMENT SCORE (4.6)% ($0.28) 87% Compared to positive 6.3% for FY 2019. Compared to earnings per share This was higher than Mercer’s global Return on Equity for FY 2020 was negative of $0.39 for FY 2019. average of 80%. due to the net loss registered. Net loss of $506 million for FY 2020 translated to a loss per share of $0.28.
CASH DIVIDEND PER SHARE NET ASSET VALUE PER SHARE COVID-19 RELIEF EFFORTS 10.0cts $5.90 >$5m Compared to FY 2019’s cash dividend Decreased 4% from FY 2019’s Committed to support communities of 20.0 cents per share. $6.17 per share. affected by the pandemic in Singapore Total distribution for FY 2020 comprises and overseas. a proposed final cash dividend of 7.0 cents per share and an interim cash dividend of 3.0 cents per share.
NET GEARING RATIO FREE CASH INFLOW^ WORKPLACE SAFETY AND 0.91x $497m HEALTH AWARDS Increased from FY 2019’s net gearing Compared to FY 2019’s outflow 21 Awards of 0.85x. of $653 million. The highest number of awards won Net gearing increased mainly due to This was mainly due to lower working by a single organisation in 2020. impact from lower equity due to the capital requirements and higher proceeds significant impairments recorded in from divestments. FY 2020, as well as increase in net debt arising from investments made, working capital requirements and dividend payments.
^ Free cash flow excludes expansionary acquisitions & capital expenditure, and major divestments.
Annual Report 2020 GROUP OVERVIEW GROUP FINANCIAL HIGHLIGHTS 3
GROUP QUARTERLY/HALF-YEARLY RESULTS ($ million)
2020 2019 1H 2H Total 1Q 2Q 3Q 4Q Total Revenue 3,182 3,392 6,574 1,531 1,784 2,067 2,198 7,580 EBITDA 52 370 422 389 262 289 312 1,252 Operating (loss)/profit (149) 157 8 322 160 183 212 877 (Loss)/Profit before tax (357) 102 (255) 283 206 227 238 954 Attributable (loss)/profit (537) 31 (506) 203 153 159 192 707 (Loss)/Earnings per share (cents) (29.5) 1.7 (27.8) 11.2 8.4 8.8 10.5 38.9
2020 2019 % Change For the year ($ million) Revenue 6,574 7,580 -13 Profit EBITDA 422 1,252 -66 Operating 8 877 -99 Before tax (255) 954 n.m.f. Net (Loss)/Profit (506) 707 n.m.f. Operating cash flow 202 (825) n.m.f. Free cash flow* 497 (653) n.m.f. Economic Value Added (EVA) (1,368) 188 n.m.f.
Per share (Loss)/Earnings ($) (0.28) 0.39 n.m.f. Net assets ($) 5.90 6.17 -4 Net tangible assets ($) 5.02 5.25 -4
At year-end ($ million) Shareholders’ funds 10,728 11,211 -4 Non-controlling interests 428 435 -2 Total equity 11,156 11,646 -4 Net debt 10,123 9,874 3 Net gearing ratio (times) 0.91 0.85 7
Return on shareholders’ funds (%) (Loss)/Profit before tax (2.4) 7.9 n.m.f. Net (Loss)/Profit (4.6) 6.3 n.m.f.
Shareholders’ value Distribution (cents per share) Interim dividend 3.0 8.0 -63 Final dividend 7.0 12.0 -42 Total distribution 10.0 20.0 -50 Share price ($) 5.38 6.77 -21 Total shareholder return (%) (18.6) 18.5 n.m.f.
* Free cash flow excludes expansionary acquisitions & capital expenditure, and major divestments. n.m.f. = No meaningful figure
Keppel Corporation Limited GROUP OVERVIEW 4 GLOBAL PRESENCE 5
TOTAL FY 2020 REVENUE ASIA $6.6b $5,246m Markets outside of Singapore • China contributed about 41% of the EUROPE • India Group’s revenue for FY 2020. • Indonesia $374m • Japan • Belgium • Malaysia • Germany • Myanmar • Italy • The Philippines • Ireland • Singapore • The Netherlands • South Korea • The United Kingdom • Vietnam
NORTH AMERICA $644m • The United States
MIDDLE EAST $105m • Qatar • The United Arab Emirates
SOUTH AMERICA AUSTRALIA $72m $133m • Brazil
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 6 CHAIRMAN’S STATEMENT 7
BUILDING A SUSTAINABLE FUTURE As part of Vision 2030, we are working towards becoming one integrated business, providing solutions for sustainable urbanisation.
LEE BOON YANG Chairman
DEAR SHAREHOLDERS, However, despite the many challenges brought about by COVID-19, Keppel WE ARE DEEPENING COLLABORATION 2020 will long be remembered as the year continues to strive for growth and success. of the COVID-19 pandemic. The pandemic In May 2020, we unveiled Vision 2030, AND ADOPTING A ONEKEPPEL APPROACH infected more than 100 million people our long-term strategy to guide the worldwide and caused the death of Group’s growth and transformation. more than two million victims by TO HARNESS THE SYNERGIES OF THE GROUP end-February 2021. It inflicted immense VISION 2030 human suffering, ravaged the global From a conglomerate of largely unrelated AND CAPTURE NEW PROFIT POOLS. economy and disrupted life everywhere. parts, we are working towards becoming one integrated business, providing Recent progress in the development and solutions for sustainable urbanisation. and capture new profit pools that might not exit low value-adding repairs and other rollout of COVID-19 vaccines has given We will focus on four key segments be available to individual business entities. activities with low bottom-line contribution. hope of bringing the pandemic under that are part of a connected value chain, Keppel O&M will instead transit to control. However, the virus continues namely Energy & Environment, In the last few months, we have progressively being a developer and integrator of to spread in many countries, with new Urban Development, Connectivity announced different steps that Keppel is offshore energy and infrastructure assets, mutations emerging and threatening and Asset Management. We are also taking to execute Vision 2030. These include focusing on work with higher value capture. new waves of infection. We are thus not deepening intra-company collaboration the announcement last September of our As we execute the transformation of out of the woods yet, but must continue and adopting a OneKeppel approach plans to monetise $3–5 billion of identified Keppel O&M, we will also continue to to rigorously implement safe management to harness the synergies of the Group assets over three years, which will be explore inorganic options, though there measures as we continue the global fight redeployed to seize new opportunities. is no assurance that any transaction against the coronavirus. We have since made good progress towards will materialise.
the target, with announced divestments As a multi-business company operating in of more than $1.2 billion from October In line with Keppel’s sharpened business more than 20 countries, Keppel has also to December. We will continue our asset focus, we have decided to divest our been severely impacted by the pandemic, monetisation programme in the year ahead logistics business, and are currently especially our offshore & marine (O&M) and recycle capital to fund new initiatives. engaging potential buyers. We have business, which was badly hurt by the also announced new initiatives in plunge in global demand for oil. Earlier this year, we also announced bold the development of onshore and
plans to transform Keppel Offshore & Marine offshore renewable energy assets, (Keppel O&M) to be more relevant and urban development and asset management, competitive amidst the global energy transition. among others. These are just some of Keppel O&M will exit the offshore rigbuilding the changes and new initiatives that the business, after completing its existing Company will be implementing as we uncompleted rigs, and will progressively pursue Vision 2030.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 8 CHAIRMAN’S STATEMENT 9
FINANCIAL PERFORMANCE cash dividend of 3.0 cents per share, For FY 2020, Keppel sustained a net loss we will be paying out a total cash dividend CASH DIVIDEND PER SHARE of $506 million, due to impairments of 10.0 cents per share to shareholders of $952 million, which were mainly for the whole of 2020. 10.0cts in the O&M business. Most of these impairments were recorded in 2Q 2020, ENERGY & ENVIRONMENT Total cash distribution following the sharp drop in oil demand Over the past few years, Keppel O&M has proposed for FY 2020. and oil prices, which were triggered been increasingly pivoting to renewables by the pandemic. and cleaner fossil fuels such as Liquefied Natural Gas (LNG). This strategy has borne Apart from Keppel O&M, all key business fruit. Despite the very tough environment, it units remained profitable, with Keppel secured new order wins of about $1.0 billion Infrastructure, Keppel Capital and in 2020, with offshore renewables and Keppel Telecommunications & Transportation LNG solutions making up 65% of new achieving higher net profits year-on-year (yoy). orders. Keppel O&M’s net orderbook Excluding impairments, FY 2020’s net stood at $3.3 billion as at end-2020, profit would have been $446 million, of which close to 82% comprises underpinned by the resilient performance renewables and gas solutions. of Keppel’s business units, many of which provide essential services and continued Keppel Infrastructure delivered strong results operating throughout the pandemic. and continued to grow as a steady contributor to the Group, underpinned by improved In appreciation of our shareholders for performance in the Energy Infrastructure their continued confidence and support and Environmental Infrastructure businesses. for Keppel in this difficult environment, During the year, Keppel Infrastructure secured the Board of Directors has proposed a $2.1 billion worth of waste-to-energy (WTE) final cash dividend of 7.0 cents per share and district cooling contracts across for FY 2020. Together with the interim Singapore, India and Thailand.
In February 2021, Prime Minister Lee Hsien Loong (third from left) together with Minister for Sustainability and the Environment, Ms Grace Fu (fourth from right) officiated at the opening of the iconic KMEDP.
Apart from Keppel O&M, all key business units remained profitable, Despite disruptions caused by the by slower approval for the launch of CONNECTIVITY with many providing essential services and continuing to operate pandemic, the iconic Keppel Marina new projects, though the underlying The pandemic changed the way many throughout the pandemic. East Desalination Plant (KMEDP) was demand remains strong. In Singapore, people worked. Working from home completed on schedule and commenced home sales improved, reflecting the and virtual meetings became the norm. operations in June 2020. On 4 February 2021, continuing demand for high-quality and These changes have driven up demand for we were honoured to have Prime Minister well-located homes. communication services and data centres. Lee Hsien Loong officiate at the official opening of the plant. It is Singapore’s first These home sales figures do not In 2020, Keppel Data Centres added two dual-mode desalination plant, capable include the approximately 8,200 units new data centre development projects of treating seawater and reservoir water, sold en-bloc from the announced in Singapore and China to its portfolio. and will contribute to enhancing Singapore’s divestments of our stakes in four Following the success of the inaugural water security. residential projects across China Alpha Data Centre Fund, we have launched and Vietnam. the new Keppel Data Centre Fund II, Keppel Renewable Energy has also which will allow us to further expand announced its first renewables project, Our total residential landbank stands at our data centre footprint, without relying namely the development of a 500MW about 54,000 homes, with the majority just on our balance sheet. solar farm in Queensland, Australia. in China and Vietnam, and a growing We will continue to explore opportunities portfolio in India. M1 provides essential communications in renewable energy assets. services and remained relatively resilient Keppel Urban Solutions continued to despite the pandemic. While roaming and URBAN DEVELOPMENT seek opportunities as a master developer prepaid revenue were affected by COVID-19 During the year, Keppel Land announced of smart, sustainable urban townships, related travel restrictions, M1 has expanded asset divestments of about $1.3 billion, tapping the diverse capabilities of the its market share to have the second largest and continued to grow its business with Keppel Group. It continues to collaborate postpaid base in Singapore, based on both the acquisition of a stake in a co-living with Keppel Land on the development the number of customers and revenue. solutions provider as well as new projects of the 64-hectare Saigon Sports City, A major coup for M1 in 2020 was securing in China and India. which combines high-quality urban living the 5G network license together with StarHub, with vibrant and healthy lifestyles. which will see M1 roll out 5G network Keppel Land sold about 3,340 residential units, coverage across Singapore. The sharing mainly in China, Vietnam and Singapore. In China, the Sino-Singapore Tianjin Eco-City of network resources with StarHub will Home sales were lower yoy, due to economic continues to grow steadily with a vibrant allow M1 to push out 5G service at more headwinds in China, as well as fewer new community. During the year, the master affordable cost. M1’s transformation is also Keppel O&M extended its track record in offshore renewables, securing a $600 million contract to build one of the world’s largest offshore wind turbine installation vessels for Dominion Energy in the US. projects launched in the Chinese market. developer sold two residential land plots progressing well. It has recently unveiled In Vietnam, home sales were affected and two industrial plots. its refreshed brand identity and launched
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 10 CHAIRMAN’S STATEMENT 11
and we have continued to invest in training We also committed to plant 10,000 trees in (health, safety and the environment) has and talent development. I am heartened Singapore over the next five years, in support greatly benefitted the Board and Company COMMUNITY CONTRIBUTION to see that notwithstanding the challenging of the National Parks Board’s One Million for almost 11 years. external environment, Keppelites remain Trees Movement. Beyond providing financial highly engaged. In the 2020 Employee support, our staff also contributed more In addition, I would like to thank my fellow >$5m Engagement Survey, we achieved an than 10,000 hours of volunteer community directors for their commitment and valuable Committed to fight COVID-19, engagement score of 87%, significantly outreach and service globally, including both guidance during this past year, which has in Singapore and overseas. higher than Mercer’s global average of 80%. physical events held in compliance with safe been exceptionally challenging. I am also As part of the Group’s succession planning, management measures, as well as creative grateful to our many partners, customers VOLUNTEER HOURS we have carried out leadership renewal in a virtual engagement programmes. and stakeholders for their support and few key business units. These next generation confidence in Keppel as we navigate these leaders are part of the team that formulated ACKNOWLEDGEMENTS uncharted waters. >10,000 hrs Vision 2030 and are well-placed to collaborate As Keppel had announced earlier, I will be Of community outreach and with the rest of the Group to realise our retiring from the Board on 23 April 2021, Finally, my appreciation goes to the thousands service by Keppelites globally. common vision. immediately after the upcoming Annual of Keppelites around the world, including the General Meeting (AGM). I will be succeeded migrant workers who are an important part Compliance remains a key focus area. by Mr Danny Teoh, a longstanding director of our workforce, for their hard work, dedication In December 2020, we announced that of the Company with sharp business and resilience, as we continued to run our Keppel O&M had complied with and acumen and strong expertise in governance, operations and provide essential services to successfully concluded the Deferred finance and risk management, whom I am the community despite the pandemic. Prosecution Agreement which it had entered confident will provide effective leadership to into with the U.S. Department of Justice the Board and management as Keppel While the global economic outlook remains three years ago, thus bringing closure to continues its growth and transformation. uncertain, we have a clear vision of the future As part of Vision 2030’s focus on sustainability, Keppel is exploring the development of floating data centres, which are a very painful chapter in Keppel’s history. that we want to create. Guided by Vision 2030, more energy efficient than traditional land-based ones. Reflecting Keppel’s zero tolerance for It has been a great privilege and honour the Group will work as OneKeppel and corruption, we have continued to enhance for me to have served as the Chairman of collaborate with our partners and stakeholders our compliance measures, including the Board for close to 12 years. I am deeply to build a sustainable future. progressively rolling out the ISO 37001 grateful to shareholders for your support, and Anti-Bribery Management System across for the opportunity to have worked with many business units. Apart from Keppel O&M, outstanding Board members and dedicated Yours sincerely, We are making sustainability our business, which had achieved global certification in Keppelites to build on the Keppel story. 2019, the Singapore entities of both Keppel by providing solutions that contribute to a Land and Keppel Data Centres also achieved We would also like to thank our non-executive cleaner and greener world, such as renewable ISO 37001 certification in 2020. and independent directors, Mr Alvin Yeo and Mr Tan Ek Kia, who will be retiring at the energy, WTE plants and green buildings. Safety is one of Keppel’s core values, conclusion of the upcoming AGM. We are and we continue to enhance the Group’s grateful to Alvin for his close to 12 years safety performance, including through of distinguished service and wise counsel, LEE BOON YANG harnessing technology such as data and Ek Kia, whose extensive experience in Chairman its new digital connectivity platform, the core of our strategy. We are committed analytics and artificial intelligence to the energy business and the field of HSE 26 February 2021 which is expected to significantly improve to running our businesses sustainably, improve our health and safety systems customer experience. with long-term targets for reducing carbon and processes. At the Singapore Workplace emissions, as well as water and waste Safety & Health Awards 2020, Keppel won ASSET MANAGEMENT intensities. Environmental sustainability has 21 awards, the highest number by a single Asset Management functions both as a been woven into the performance appraisal organisation for the year. In 2020, our total vertical for the Group, and a horizontal which of senior management across the Group, recordable injury rate improved. However, promotes collaboration across businesses, and an internal shadow carbon price has sadly, we suffered one fatality at a yard while also serving as a platform for capital been included in the evaluation of all major in Singapore. We have thoroughly recycling and tapping third-party investments investment decisions. investigated the incident and put in for growth. Keppel Capital performed well place enhanced training and other in FY 2020, with assets under management We are also making sustainability measures to prevent recurrence. growing to $37 billion by end-2020, our business, by providing solutions that compared to $33 billion a year ago. contribute to a cleaner and greener world, Keppel believes in contributing to the Despite COVID-19 related travel restrictions, such as renewable energy, WTE plants community, wherever we operate. Keppel Capital-managed funds raised and green buildings. Reflecting our We committed over $5 million to the fight total equity of about $4.5 billion from commitment to contribute to greening against COVID-19, in Singapore and overseas, institutional investors during the year, the built environment, Keppel Bay Tower, including donating to The Courage Fund in reflecting the strong demand from where Keppel Corporation is headquartered, Singapore. I would like to thank the directors investors for assets with long-term has been certified by the Building and and staff of the Keppel Group for their sustainable cashflow. Keppel Capital has Construction Authority (BCA) as Singapore’s generous contributions to these efforts. also launched and achieved first close for first Green Mark Platinum (Zero Energy) Beyond lending a hand to communities most several funds spanning different asset commercial building. In addition, we are affected by COVID-19, we also continued classes, including real estate, data centres exploring floating data centres, which to provide care for the underprivileged and and infrastructure. are more energy efficient than traditional support environmental causes. Through the land-based ones. Keppel Care Foundation, we donated $2 million BUILDING A SUSTAINABLE FUTURE to the National Kidney Foundation to open Keppel Volunteers distributed festive care packs to beneficiaries as part of the Group’s support for vulnerable As part of Vision 2030, the Board and The realisation of Vision 2030 depends the first dialysis centre in Singapore which communities affected by COVID-19. management have put sustainability at on people, our most important asset, is co-located within a hospital compound.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 12 INTERVIEW WITH THE CEO
LOH CHIN HUA Chief Executive Officer
GUIDED BY VISION 2030, WE WILL GROW KEPPEL AS AN INTEGRATED BUSINESS PROVIDING SOLUTIONS FOR SUSTAINABLE URBANISATION, WITH SUSTAINABILITY AT THE CORE OF OUR STRATEGY.
Q 2020 was a very challenging year. a connected value chain, while putting such as the yards that we operate, Beyond the financial impact, how has sustainability at the core of our strategy. nor do they include some of the the COVID-19 pandemic changed units that we hold in the REITs and Keppel’s outlook and strategy? The macrotrends that Vision 2030 business trust to align interests with seeks to address, such as rapid their Unitholders. A COVID-19 caused considerable human urbanisation, the energy transition, suffering and disruption to the global climate change, digitalisation We have set ourselves the target economy. But it also engendered fast and super liquidity, were identified to monetise about $3–5 billion of and furious experimentation the world pre-COVID-19 but remain highly this substantial asset pool over the over, giving rise to new ways of working relevant today. If anything, some next three years, which will provide and new business models. Keppel was of these trends have been further the balance sheet space for us to fortunate to have embarked on our accelerated by the pandemic, and we invest in the many exciting growth digitalisation journey a few years ago, have to act quickly and decisively to opportunities we have identified across which allowed us to transit quickly transform and seize opportunities. our business lines. to working from home, or from almost anywhere. With a sharpened business focus and Q Vision 2030 seems quite far out. an asset-light model, we will take a How will Keppel keep up the energy In May 2020, despite the pandemic, disciplined approach to capital allocation, and momentum? Are there plans to we unveiled Vision 2030, our long-term and proactively unlock capital that can bring the targets forward? roadmap to grow and transform be recycled into growth opportunities. Keppel into an integrated business As part of our Vision, we have identified A Vision 2030 has been well-received providing solutions for sustainable a group of assets with a carrying by our stakeholders, and also the urbanisation. We will focus on four key value of $17.5 billion that can investment community. But I have areas, namely Energy & Environment, potentially be monetised over time. sometimes been asked, “Why 10 years? Urban Development, Connectivity These assets do not include our key Does Keppel plan to take this long to and Asset Management, all part of business platforms or fixed assets realise the Vision?”
Annual Report 2020 13
2030 was chosen to give our younger We believe that we have a very compelling to be a developer and integrator of leaders a longer runway to boldly re-imagine plan for the organic transformation offshore energy and infrastructure a Future Keppel, unencumbered by our of Keppel O&M. It would not only assets, focusing on higher value current areas of businesses. It is not enhance Keppel O&M’s competitiveness aspects such as design, engineering our intention to take a decade to execute and relevance amidst the energy and procurement. It will exit the the Vision. Now that we have determined transition but also bring the company offshore rigbuilding business, and our future direction, we will accelerate more in line with Keppel’s Vision progressively withdraw from low the execution of our Vision. Internally, and Mission. The Group will also value-adding repairs and other activities we have adopted a rallying cry of benefit from Keppel O&M’s sharpened with low bottom-line contribution. “2030 by 2025”. Most initiatives can focus and capabilities as we provide be achieved by 2025, although some diverse solutions for sustainable In positioning Op Co higher up may take a bit longer. urbanisation. Should we decide in the value chain as a developer and future to undertake inorganic actions, integrator, we may not need the To monitor and drive the implementation the organic restructuring of Keppel O&M same yard capacity and footprint. of Vision 2030, we established a would also enhance its attractiveness In this respect, Op Co will review Transformation Office and also launched to other parties. and streamline its yard operations, a 100-day plan at end-September 2020 including repurposing the yards for with the goal of expediting our plans Q What are some of the opportunities other uses. Op Co will also work and invigorating Keppelites with arising from the restructuring of towards creating higher value-adding the excitement and urgency of a Keppel O&M? jobs, while subcontracting the more Day-1 company. labour-intensive work to third parties, A The bold organic transformation of including other yards. Our 100-day plan yielded very encouraging our O&M business will see us seizing results. During this time, we announced opportunities in the energy transition With the energy transition, there will over a dozen different initiatives, and contributing further up the value be a stronger push in the energy including asset monetisation as well chain, in line with Vision 2030. Through mix for renewables and cleaner fuels as growth initiatives, such as securing the restructuring, we aim to create like liquefied natural gas. Keppel O&M new offshore and onshore renewables a slimmer and more competitive has a good head start in this respect, projects, growing our urban development Keppel O&M that is people- and with gas and renewables solutions business, and launching new funds asset-light. In creating the three making up over 80% of its net aligned to Keppel’s areas of business. different parts of the business, Rig Co, orderbook of $3.3 billion at the Significantly, we announced over Dev Co and Op Co, we have ring-fenced end of 2020. Keppel O&M will continue $1.2 billion in divestments between the legacy assets and will contain any to build on this traction to invest in October and December 2020, further capital outflow beyond the initial new capabilities that will enable it to putting us well on track to achieving funding, as we work towards resolving seize new opportunities. These include our three-year target of $3–5 billion. this legacy issue. renewables, gas solutions, production In line with our sharpened business assets such as Floating Production focus and financial discipline, we also In the meantime, Op Co, undistracted Storage and Offloading units, as well carried out a strategic review of our by the legacy assets, can focus on as new energy solutions like hydrogen offshore & marine (O&M) business. transforming the rest of Keppel O&M and tidal energy.
With the conclusion of the 100-day plan, we are pursuing the next waves of initiatives. In the year ahead, we will continue our asset monetisation programme as we recycle capital into new opportunities and growth engines. We will not stop at the $3–5 billion monetisation target. If conditions are favourable, we will continue to do even more.
Q Can you share the thinking behind the strategic review of Keppel’s O&M business? Are you still considering inorganic options?
A The intense headwinds faced by the O&M industry have been accelerated over the past year, with the Group taking $952 million of impairments in FY 2020, mainly in the O&M business. Quite clearly, business as usual is not an option. It is thus critical to have a good organic plan that we can work on immediately to tackle the pressing challenges facing Keppel announced the monetisation of over $1.2 billion of assets from October to December 2020, including Keppel O&M, even as we explore Keppel Bay Tower in Singapore, and is well on track to achieving the Group’s 3-year target. inorganic options.
Keppel Corporation Limited GROUP OVERVIEW 14 INTERVIEW WITH THE CEO
The bold organic transformation of our O&M business will see us seizing opportunities in the energy transition and contributing further up the value chain.
We will also explore how Keppel O&M’s towards capital allocation which we have and can also provide innovative solutions offshore rig technology can be repurposed committed to as part of Vision 2030. that contribute to a greener and better for other uses, including collaborating world. We are also seeing growing with other Keppel business units to offer We believe we have a good logistics interest from other stakeholder groups, diverse urbanisation solutions such as business, but it is currently subscale. including governments and customers, offshore and nearshore infrastructure While it is possible for us to invest more to work with us on different infrastructure and floating data centre parks. capital and grow the business over the and urban development projects that long term, we believe that a third party contribute to a more sustainable future. I am confident that over time, may be able to provide a better eco-system Keppel O&M will be transformed to scale up the business. Thus far, We are applying the lens of sustainability into a nimble industry leader that is we have received strong interest to the Group’s major investment decisions. well-positioned for the global energy from potential buyers. We are currently With the risks and impact of climate transition and also a strong contributor evaluating the bids and have shortlisted change becoming more evident, we have to the Group’s target Return on Equity a few parties for deeper engagement. introduced a shadow carbon price in (ROE) of 15%. We are keeping our options open and the evaluation of all major investments. may decide either to divest our logistics This would help us better understand Q What about the logistics business? business completely or continue holding the carbon footprint of our business What is the rationale for divesting a minority stake. activities and the possible impact of the business when global demand future carbon taxes, and also avoid for logistics seems to be growing, Q You have spoken about making potential stranded assets. especially during the pandemic? sustainability a business for Keppel as part of Vision 2030. Over and above running our business A It is true that the logistics business has What are some of the key initiatives in a sustainable and environmentally been a beneficiary of the COVID-19 and developments on this front? responsible manner, we see Keppel pandemic. We have seen strong growth playing a significant role in helping in the demand for urban logistics and A We believe that our shareholders, as businesses and communities become channel management. The decision well as investors of our private funds, more sustainable through the solutions to divest, however, is in line with the appreciate companies like Keppel, that we provide. Beyond the solutions more focused and disciplined approach who embrace sustainable practices, that Keppel is already well-known for, such as waste-to-energy (WTE) and water solutions, district cooling plants, green buildings and townships, we are pushing boundaries to explore and develop new solutions that can contribute to combatting climate change, while also opening up new profit pools for the Group.
Under the auspices of the National Research Foundation, Keppel Data Centres Holding (KDCH) joined hands with several industry leaders to develop the first end-to-end decarbonisation process in Singapore that can help reduce carbon intensity across key sectors such as energy, chemicals and construction. Such carbon capture, utilisation and sequestration technologies can potentially be implemented in KDCH’s own operations, as well as various parts of Keppel to create cleaner products and solutions that help to advance climate action and the circular economy. In the same vein, we are exploring floating data centre technologies as well as other innovative Detailed engineering of an offshore wind farm substation. solutions including a cold energy harnessing facility and a hydrogen The new Keppel O&M will focus on higher value-adding work as a developer and integrator of offshore energy and infrastructure. powered tri-generation plant to reduce the carbon footprint of data centres.
Annual Report 2020 15
The Tuas Nexus Integrated Waste Management Facility, to be developed by a Keppel-led consortium, will contribute to Singapore’s sustainable urbanisation.
We are also advancing our presence in Keppel Infrastructure secured $2.1 billion solutions. With the launch of new funds the renewables space as a developer, worth of WTE and district cooling such as the Keppel Asia Infrastructure owner and operator of renewable contracts across Singapore, India and Fund (KAIF), we are well-positioned energy infrastructure. In December 2020, Thailand. Some of these come with long to seize growth opportunities and Keppel Renewable Energy announced the concessions of 20–30 years, adding to scale the business in partnership with development of a large-scale, greenfield the visibility of recurring income from the co‑investors, and without relying just solar farm in Queensland, Australia. operation and maintenance of the assets. on our own balance sheet. To be completed in 2023, the 500MW solar farm will be connected to the At the end of June 2020, commercial Q What is the outlook for the property national energy market for consumers operations began at Keppel Marina East business and how is Keppel adapting and also businesses seeking sustainable Desalination Plant (KMEDP). KMEDP to the changing landscape? energy solutions, including Keppel-related was officially inaugurated by Singapore’s companies in Australia. We have announced Prime Minister Lee Hsien Loong on A Of the approximately $17.5 billion of a target to expand the Group’s portfolio of 4 February 2021. It was a proud moment monetisable assets that we have identified renewable energy assets to 7GW by 2030. for Keppel, having contributed to across the Group, about 30% or $5.3 billion strengthening Singapore’s water security comprises our quality residential landbank Collectively, our expertise in green data with an asset that will also provide a and residential development projects centre technologies and ability to tap steady stream of operating income and that are held at cost. renewable energy puts Keppel in a good cashflow over the next 25 years. position as we work with the authorities in The strategy of activating our sizeable Singapore and other countries to develop Meanwhile, site works for Singapore’s landbank has served us well. For the new low carbon data centres, as well as with first Integrated Water and Solid Waste whole of 2020, Keppel Land announced our customers who are increasingly focused Treatment Facility, Tuas Nexus, asset divestments of about $1.3 billion. on sustainability. What I have shared are commenced in September 2020. This includes four residential projects just a few examples of the many exciting Over in Hong Kong, we continued to across China and Vietnam, which are opportunities that we see in various parts make progress on the construction of the equivalent to about 8,200 units sold of our business. There would be even integrated waste management facility en-bloc, over and above the 3,340 homes more growth opportunities, new profit project, albeit at a slower pace due to that Keppel Land sold in the normal pools and synergy unleashed as we link up disruptions from the COVID-19 pandemic. course of business during the year. our varied offerings and solutions across As at October 2020, Keppel Electric was an integrated value chain as OneKeppel. the leading Open Electricity Market retailer The progress in capital recycling also with an approximate 23% market share reflects the discipline we have instilled Q Keppel had secured WTE and of residential consumers in Singapore. in the business to evaluate and turn our district cooling contracts worth assets regularly. We have shared earlier about $2.1 billion in 2020. What are We expect to see continuing urbanisation that Keppel Land’s revalued net asset some of the key opportunities ahead? in the post COVID-19 world, which will value (RNAV) was $10.3 billion at the present substantial opportunities for end of 2018. This was approximately A Keppel Infrastructure continued to grow as Keppel across our spectrum of energy $5.68 per share of Keppel Corporation, a steady contributor to the Group. In 2020, and environmental infrastructure which represents a good premium
Keppel Corporation Limited GROUP OVERVIEW 16 INTERVIEW WITH THE CEO
compared to its book value of about $4.49 per share then. The RNAV of Keppel Land had edged up further in our last internal evaluation in early-2020. In many Asian cities where land prices have risen significantly, we are well-placed to realise the true value of our assets by divesting some of our land parcels or projects, while working with like-minded partners to co-develop others.
From time to time, we may still acquire land plots, but only when it makes sense. Through Keppel Urban Solutions (KUS), we will also be seeking opportunities as a horizontal master developer for integrated townships. KUS will work with other technology and solutions providers to create new smart districts, towns and cities. Keppel Land can develop some of the plots vertically into homes, offices and commercial spaces. In a sense, creating developable land from large tracts of raw M1 has increased its market share to have the second largest postpaid base in Singapore, based on both the number of customers and revenue. land, by leveraging the Group’s capabilities in energy, environmental engineering, urban development and connectivity, will ultimately provide better margins. KUS can also bring in other property developers to in Huizhou, Guangdong Province. M1 to provide 5G services at an affordable provide more diversity in the design and This marked Keppel’s first data centre cost to consumers and businesses. construction of the cityscape. We will also development in mainland China. Presently, M1 is in the process of rolling stay nimble, and focus on acquiring new out its 5G SA network and has gained capabilities and business models, such as Following the success of Alpha DC Fund, swift traction by becoming Singapore’s in co-living and co-working, to address the we have launched the US$1 billion first telco to open up 5G access to all new opportunities ahead, including the Keppel Data Centre Fund II (KDC Fund II) its customers, without any restrictions evolution of real estate as a service. and raised more than US$500 million on the number of sign-ups or plans. as at December 2020. KDC Fund II will Q What is the outlook for the data focus on making strategic investments The real benefits of 5G however, centre business? in fast-growing cities across Asia Pacific extend beyond faster download speed and Europe, widening our presence in for consumers to enabling the low A As the world becomes more digitalised these markets. latency and network slicing that have vast and connected, the demand for applications for industries and businesses. data centres will continue to grow As we expand our data centre business To this end, M1 has been actively rapidly. Our data centre business in collaboration with third-party investors, collaborating with industry leaders as well has been a foremost example of the we will continue to draw on our engineering as government agencies to conduct trials potential and multiplier effect that nous as well as the Group’s diverse of 5G use cases that will help to advance our various business units have when capabilities to create greener solutions Singapore’s smart nation ambition. they collaborate with one another to and better assets that will be valued create better, smarter solutions. by our customers and investors. For instance, M1 is partnering IBM, Infocomm Media Development Authority KDCH, together with the private data centre Q Can you talk about M1’s progress and Samsung to conduct Singapore’s funds under Keppel Capital and also since its privatisation? What kind of first 5G Industry 4.0 trial that aims to Keppel DC REIT, generated total earnings opportunities does the securing of a demonstrate the transformative impact of of about $598 million, on average 5G standalone licence in Singapore 5G for enterprises. 5G’s capabilities such shareholders’ funds of about $382 million open up for the Group? as faster data transfer and more rapid since 2014. This does not include the response times, when coupled with approximately $541 million premium over A M1 has been contributing meaningfully other transformative technologies like the carrying value of Keppel’s stake in to the Group since its privatisation. The artificial intelligence, can enable significant Keppel DC REIT as at 31 December 2020. company has performed commendably improvements to production, service, over the past year in spite of COVID-19, quality control and testing across a Alpha Data Centre Fund (Alpha DC Fund), increasing its market share to have broad range of industries. M1 is also a collaboration between KDCH and the second largest postpaid base in collaborating with DBS to jointly develop Keppel Capital, has grown its portfolio to Singapore, based on both the number digital banking solutions and provide have over 1.38 million square feet of of customers and revenue. bundled services to large corporates gross floor area in key economic centres and small-to-medium enterprises. across Asia Pacific and Europe. During A significant milestone in 2020 was the year, Alpha DC Fund announced that the securing of a 5G standalone (SA) M1’s expanding capabilities are a strong it was investing about RMB1.5 billion for licence jointly with StarHub. The sharing complement to the Group’s business a greenfield data centre development of resources with StarHub will enable operations as well as diverse solutions
Annual Report 2020 17
for sustainable urbanisation. Whether in Singapore or overseas, we can leverage M1’s data analytics capabilities to glean As we continue to advance our asset-light actionable insights that can be applied in our master development projects and model, gains from the monetisation of assets smart cities, and to provide connectivity would add to the pool of profits from which to the increasing number of smart assets, leveraging both Internet of Things and we pay out dividends. Industrial Internet of Things. This greatly amplifies the possibilities, and also the potential for unlocking synergy as our business units collaborate as OneKeppel. Keppel, as co-investor and sponsor in As we continue to advance our asset-light these private funds and listed vehicles, model, gains from the monetisation of Q The Asset Management business has also benefitted from this virtuous assets would add to the pool of profits has achieved good traction in 2020, cycle of value creation. In FY 2020, from which we pay out dividends. We will in spite of the pandemic. Why is our stakes in the various private funds also explore how best to create value this so, and can you talk about the and listed trusts yielded $195 million with the surplus funds unlocked. This opportunities that excite Keppel? in net contributions to the Group. could include returning some capital to In addition, the private funds, such as shareholders over time, particularly in A Our Asset Management business serves KAIF and KDC Fund II, enable us to periods where growth opportunities may as a financial twin to our other segments, scale our business by tapping third‑party be fewer or priced inappropriately. providing funding and opportunities funds while reducing the burden on our for monetisation once a solution is balance sheet. And as we continue to Q How is Keppel developing its commercialised, de-risked and cashflow provide services, such as development, people to drive the achievement generative. In FY 2020, our Asset operation and maintenance or asset of Vision 2030? Management business was the second management, these various sources largest contributor to the Group (after of fees will give us multiple bites of A To achieve Vision 2030, we need to Urban Development), with a net profit of the cherry and contribute towards have the right people, with the right $280 million for FY 2020, which included a growing the Group’s recurring income. mindsets and skillsets, who are agile mark-to-market gain of $131 million from and ever-ready to learn and adapt in this the reclassification of the Group’s interest Q What are the plans to allocate the fast-changing world. in Keppel Infrastructure Trust from an capital unlocked from the asset associated company to an investment. monetisation programme? Will the I am heartened to see that despite Company consider giving special the challenging external environment, 2020 was a prolific year for Keppel Capital, dividends to shareholders? we continue to have a high employee which launched a series of new private engagement score of 87%; higher fund initiatives across data centres, A An integral part of Vision 2030 is to have than Mercer’s global average of 80%. education, infrastructure, logistics, a more disciplined approach to asset In the same survey, more than 90% mezzanine debt and real estate, and allocation. We have in place a set of of Keppelites indicated that they were raised total equity of about $4.5 billion metrics, and will prudently assess each motivated to do more than what was from global institutional investors. While investment based on its ability to meet required to help the Company succeed. COVID-19 imposed restrictions on travel, the Group’s ROE target, scalability, the Keppel Capital was able to leverage its potential for synergy and creation of We are committed to leadership strong network and overseas offices new profit pools, and also alignment with development and succession planning, to continue engaging investors. During our Vision, Mission and environmental, which are pivotal to the long-term success the year, Keppel Capital completed over social and governance goals. of any company. We have announced $7 billion worth of acquisitions and leadership renewal in several key divestments and saw a healthy increase Funds unlocked from the monetisation business units, which took effect from in asset management fees. By end-2020, of assets would initially go toward 15 February 2021. These next generation Keppel Capital’s assets under management reducing our net gearing. This is already leaders were personally involved in had risen to $37 billion, a 12% growth taking place, and we have seen our formulating Vision 2030 and will work over $33 billion in the year before. net gearing lower from 1.0x as at together with the rest of the Group in end-June 2020 to 0.91x as at end-2020. pursuit of our common vision. These achievements not only reflect Looking ahead, we will also have funding strong demand from investors for assets requirements for our growth initiatives. In 2020, we were honoured to be with long-term sustainable cashflow, but There are a number of exciting areas named again by Forbes as one of the also their desire to work with Keppel Capital, across our segments including renewable World’s Best Employers. We will continue which is part of the larger Keppel Group energy, environmental solutions, to invest in training and developing our and eco-system. The Group’s capabilities data centres, smart and connected employees, to allow them to reach their in creating and operating real assets urban developments, as well as full potential. are an attractive proposition for the asset management. investors of Keppel Capital’s funds. Despite the impact of COVID-19, Another added advantage that Keppel We recognise that dividends are important I am cautiously optimistic about the has is our established platform consisting to our shareholders. Even though 2020 future. We will continue to build on of listed REITs and a business trust that was a difficult year, the Board has proposed our strengths, harness technology and can help to monetise these assets a final dividend of 7.0 cents per share, promote collaboration as OneKeppel, when they have been de-risked and taking into consideration metrics such as we work towards the achievement are cashflow generating. as the free cash inflow. of Vision 2030.
Keppel Corporation Limited 18 19
MAKING WAVES “The macrotrends that Vision 2030 seeks to address The 100-day plan achieved creditable results with all business units VISION 2030 were identified pre-COVID-19 but remain highly relevant and invigorated Keppelites rallying today. If anything, some of these trends have been as OneKeppel. further accelerated by the pandemic. We have to act BLAZING quickly and decisively to seize these opportunities.” 100-DAY PLAN LOH CHIN HUA AT A GLANCE CEO of Keppel Corporation • Announced key appointments of THE TRAIL next generation business unit leaders who were involved in formulating Keppel aims to be a powerhouse of end-to-end A NEW CHAPTER ACCELERATING EXECUTION Vision 2030. At the end of May 2020, Vision 2030 Following the launch of Vision 2030, Keppel solutions for sustainable urbanisation, an ESG leader was launched amid the global rolled out further plans in September 2020 • Announced over $1.2 billion in asset COVID-19 pandemic, paving the way to accelerate its implementation. monetisation out of $3–5 billion target. advancing climate action, as well as a valuable company for Keppel’s next phase of growth and renewal, with sustainability at the core To fuel its ambitious growth plans, with a strong growth trajectory, delivering 15% ROE, of its strategy. The long-term roadmap, Keppel has earmarked a sizeable pool • Announced bold transformation of steady recurring income and good dividends. charted with close to 30 next generation of assets with a total carrying value of the O&M business to position for the leaders from across the Group, converges about $17.5 billion2 that can be monetised global energy transition. As one integrated business, Keppel will contribute to Keppel’s diverse subsidiaries to be one over time and channelled towards its integrated business providing sustainable initiatives. Keppel has set a target to • Announced plans to divest the building a sustainable future for all stakeholders. urbanisation solutions across the four monetise $3–5 billion of these assets in logistics business. key areas of Energy & Environment, the next three years, which will unleash Urban Development, Connectivity and capital for re-investments and unlock • Announced the securing of offshore Asset Management. value for shareholders. and onshore renewables-related projects including a solar farm FOUR FOCUS AREAS KEY MACROTRENDS THAT At the end of September 2020, a FUNDING GROWTH development in Australia. VISION 2030 SEEKS TO ADDRESS Through its fast-expanding private equity transformation office was established platform which manages $18 billion1 in to drive the execution of Vision 2030, assets, Keppel will also tap third-party funds focusing on six comprehensive • Announced new urban development to create and operate real assets, thereby workstreams spanning growth initiatives, and district cooling projects. enlarging its capital base to seize more asset monetisation and portfolio Energy Transition, growth opportunities. optimisation, cost and cash management, • Launched new funds across multiple Climate Change sustainability, technology and innovation, asset classes. For more information on Keppel’s eco-system for and people and organisation. value creation, please refer to pages 20 and 21. Energy & Environment To expedite execution of the Vision, Following the conclusion of the 100-day the Group launched a 100-day plan, and plan, Keppel is keeping up the momentum announced more than a dozen different through further waves of initiatives to bring MONETISABLE ASSETS (%) initiatives from end-September 2020 to Vision 2030 forward. Keppel will focus on early-January 2021, including the strategic seizing opportunities across its business Rapid Urbanisation, review of its offshore & marine (O&M) segments, while continuing to drive its Ageing Populations business. Over this period, Keppel also asset monetisation programme beyond announced divestments of about the three-year target of $3–5 billion. The Company will also execute plans arising Urban Development $1.2 billion, as it continues its progress towards its three-year asset from the strategic reviews of its O&M and monetisation target. logistics businesses, with a focus on transforming Keppel O&M into a nimble developer and integrator of offshore energy and infrastructure assets that will contribute Digitalisation both to the energy transition and towards achieving the Group’s ROE target. Landbank & Development Projects 40.0 Assets for REITs/Trust or Sale3 28.0 Connectivity Non-core assets 22.0
Funds/Investments that can be 10.0 1 As at end-2020. liquidated over time 2 Based on the Group’s balance sheet as at 30 June 2020. These assets do not include Keppel’s key business 2 platforms, fixed asset and some of the REITs and Trust units that Keppel holds to align interests with Unitholders. Total $17.5 billion 100.0 3 Includes assets under development. Super Liquidity
Asset Management
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 20 ECO-SYSTEM FOR VALUE CREATION 21
Our business model, underpinned by strong collaboration across To fuel Keppel’s growth, we are also expanding the Group’s capital AS ONE INTEGRATED BUSINESS, WE WILL HARNESS THE STRENGTHS verticals, provides a robust eco-system that allows us to create base, bringing on board like-minded co-investors through our private OF THE GROUP TO MEET THE WORLD’S GROWING NEEDS FOR and capture value from all parts of the Group. From the time an funds to seize opportunities and accelerate asset creation without asset is being created till after its injection into a Keppel-managed putting a strain on our balance sheet. We can also turn our assets SUSTAINABLE URBANISATION SOLUTIONS. trust or fund, our business model produces multiple income streams efficiently through our business model, unlocking value and recycling and enables us to create and capture value across the value chain. capital to achieve the best risk-adjusted returns for our stakeholders.
ENERGY & ENVIRONMENT URBAN DEVELOPMENT CONNECTIVITY ASSET MANAGEMENT
We provide a wide range of energy and We provide compelling urban solutions We connect people and businesses We create enduring value with quality environmental solutions that are essential including vibrant homes, offices, as well as in the digital economy. investment products and platforms. for sustainable development. commercial and integrated developments. • Keppel Data Centres • Keppel Capital • Keppel Offshore & Marine • Keppel Land • M1 • Private funds • Keppel Infrastructure • Keppel Urban Solutions • Keppel Logistics • Listed REITs & Trust • Keppel Renewable Energy • Sino-Singapore Tianjin Eco-City • KrisEnergy OUR KEY BUSINESS AREAS BUSINESS KEY OUR
For more information, please refer to page 42. For more information, please refer to page 49. For more information, please refer to page 55. For more information, please refer to page 59.
Design and Build a. Own and Operate Stabilise and Monetise REITs and Trust
The Group has a strong track record in designing and Keppel owns and operates many of the assets it creates The assets held as investments by Keppel and its private The Group sponsors and manages real estate, data centre developing high-quality real assets including offshore which can be retained as investments, yielding long-term, funds contribute revaluation gains to the Group. As these and infrastructure trusts across its business lines, which it and onshore infrastructure, residential and commercial steady cashflows and recurring income. Business units assets mature and are de-risked and stabilised, the Group leverages as platforms to recycle capital. Mature assets are properties, data centres, power plants and more. can earn fees from leasing out and operating such assets. can monetise them through divestments to its listed REITs well suited to the REITs and Trust, whose investors seek stable, They can also earn fees from rendering project and and Trust as well as third parties. This process for turning recurring income. Private Funds asset management services to the private funds assets enables the Group to pursue the best risk-adjusted Through the private funds that it creates and manages, created by Keppel. returns by unlocking value and recycling capital to seize The injection of assets to the REITs and Trust helps to grow Keppel can also bring on board investors, such as pension new growth opportunities. the total portfolio of assets managed by the Group. and sovereign wealth funds, to co-invest in the development of assets across its business verticals. This expands The Group will continue to earn fee income from asset Keppel’s capital base to seize opportunities while it earns b. Turnkey management, as well as the operation and maintenance of recurring fees from managing the private funds. the assets. The Group also sells products and provides turnkey
OUR BUSINESS MODEL BUSINESS OUR solutions to its customers. Some of the assets created, In addition, through its stakes in the listed vehicles, the Group such as vessels and homes, will be handed over to customers continues to benefit from the performance and contributions when they are completed. In this phase of asset creation, of the REITs and Trust. business units can earn development margins from the sale of their solutions.
Income Streams Project-based income Recurring income Revaluation & divestment gains
OUR STAKEHOLDERS OUR Employees Customers Governments Shareholders & Investors Suppliers Local Communities
For more information on the value we create for our stakeholders, please refer to our Sustainability Report – to be published in May 2021.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 22 SUSTAINABILITY FRAMEWORK 23
Sustainability is at the core of our strategy. For Keppel, this goes beyond reducing carbon emissions or the environmental WE ARE COMMITTED TO ENVIRONMENTAL STEWARDSHIP, impact of our operations. We believe in making sustainability our business, by developing solutions that can contribute to RESPONSIBLE BUSINESS PRACTICES AND NURTURING building a cleaner and greener world, while creating enduring value for our stakeholders.
OUR PEOPLE AND COMMUNITIES WHEREVER WE OPERATE. We believe that our focus on sustainability sets Keppel apart and is an important differentiator for the Group. We consider ESG issues in the determination of our strategy and policies, and are committed to supporting the United Nations (UN) Sustainable Development Goals. Keppel Corporation is also a signatory of the UN Global Compact, and we are committed to the Compact’s 10 universal principles.
Our Strategy Keppel provides solutions for sustainable urbanisation, focusing on four key areas comprising Energy & Environment, Urban Development, GOVERNANCE MEASURING PERFORMANCE Connectivity and Asset Management. With sustainability at the core of our strategy, we harness the strengths and expertise of our Management Structure Balanced Scorecard business units to develop, operate and maintain real assets, which provide diverse solutions that are good for the planet, for people The key material ESG factors for Keppel Corporation have been identified and are regularly The Company’s balanced scorecard and for the Company. reviewed by Keppel Corporation’s Board of Directors and management. The Board maintains aligns compensation with corporate and active oversight over sustainability issues, including overseeing the management and individual performance, both in terms of The three strategic thrusts under our sustainability framework are (1) Environmental Stewardship; (2) Responsible Business; and monitoring of ESG factors, and takes them into consideration in the determination of the financial and non-financial performance. (3) People and Community. Company’s strategic direction and policies. The Group Sustainability Steering Committee, Key sub-targets within each of the chaired by Keppel Corporation’s Chief Executive Officer Loh Chin Hua and comprising senior scorecard areas include key financial management from across the Group, provides guidance on the Group’s sustainability strategy. indicators, safety goals, risk management, ENVIRONMENTAL RESPONSIBLE PEOPLE AND The Group Sustainability Working Committee, comprising discipline-specific working groups, compliance and controls measures, STEWARDSHIP BUSINESS COMMUNITY executes, monitors and reports on the Group’s efforts. Our management systems, policies environmental sustainability, employee and guidelines, including the Keppel Group Code of Conduct; Health, Safety and Environment engagement, talent development and Policy, and the Keppel Supplier Code of Conduct translate our principles into practice by succession planning. As part of Keppel’s Vision 2030, The long-term sustainability People are the cornerstone of setting standards for both our Company and those whom we work with. These policies are we are progressively guiding and of our business is driven at the our businesses. We are committed regularly reviewed and refined when necessary, in line with international best practices. refocusing our portfolio towards highest level of the organisation to providing a safe and healthy sustainable urbanisation solutions, through a strong and effective board, workplace, as well as investing in through evaluating their fit with Keppel’s good corporate governance and training and developing our people Strong Governance Framework Vision, Mission and environmental, prudent risk management. We are to help them reach their full potential. Keppel is focused on upholding high standards of corporate governance. We have a social and governance (ESG) goals, as driving innovation to seize opportunities, We strive to build vibrant and strong and independent board, with nine independent directors out of a total of 11 directors, well as internal shadow carbon pricing and through our integrated business inclusive communities, through and are committed to good business ethics. We maintain clear, consistent and regular HOW WE CREATE VALUE CREATE WE HOW and climate risk assessments. We model, we seek to improve both supporting initiatives that protect communication with shareholders. have set high-impact sustainability the magnitude and quality of our the environment and promoting goals and publicly committed to earnings with more recurring income, education and care for the Keppel’s System of Management Controls Framework long-term targets to reduce our carbon, while enhancing returns through underprivileged, with the goal of The Framework comprises the Three-Lines Model towards ensuring the adequacy and waste and water intensity. We are active capital recycling. We work building a sustainable future together. tapping our engineering nous to closely with stakeholders in our effectiveness of the Group’s system of internal controls and risk management, as disclosed explore greener solutions, and will value chain to enhance their on page 93. The Control Self-Assessment programme, a Second Line in the Framework, continue to explore opportunities in sustainability performance. was refreshed in 2020, digitised, and repositioned as a central tool for controls. The digitisation renewable energy assets. process enhances efficiency and brings about new opportunities for automated controls and continuous monitoring.
For more information on Governance, please refer to page 78.
OUR STAKEHOLDERS OUR Employees Customers Governments Shareholders & Investors Suppliers Local Communities
MSCI ACWI ESG Leaders Index and iEdge SG ESG Leaders Index and FTSE4Good Index Euronext Vigeo Eiris Index – Industry Mover in the S&P Global A- in CDP Climate Forbes World’s Best The Keppel Group won Community Spirit MSCI World ESG Leaders Index iEdge SG ESG Transparency Index World 120 Sustainability Yearbook 2021 Change Assessment; Employers 2020 21 Workplace Safety and Platinum Award at Among Most Improved Health Awards the Community Chest Companies for the year 2020, Awards 2020
RECOGNITION in the Hong Kong, Macau For more information, view our Sustainability Report on our website at www.kepcorp.com and Southeast Asia region We publish sustainability reports annually, and the next report will be published in May 2021. Our sustainability reports draw on international standards of reporting, including the Global Reporting Initiative Standards, and are externally assured. The reports are also aligned with sustainability reporting requirements by the Singapore Exchange.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 24 SUSTAINABILITY FRAMEWORK 25
WE ARE COMMITTED TO THE INTERNATIONAL SUSTAINABLE DEVELOPMENT AGENDA, AND LEVERAGE COLLABORATION AND PARTNERSHIP TO SUPPORT THE ACHIEVEMENT OF THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGs). WE HAVE INCORPORATED 10 OF THE SDGs AS A SUPPORTING FRAMEWORK TO GUIDE OUR SUSTAINABILITY STRATEGY.
STRATEGIC PILLARS MATERIAL ISSUES SDGs APPROACH HIGHLIGHTS STRATEGIC PILLARS MATERIAL ISSUES SDGs APPROACH HIGHLIGHTS Environmental Climate Action We seek to grow our business and seize The iconic Keppel Marina East Desalination Responsible Economic COVID-19 has accelerated many macrotrends, Keppel’s business operations generate opportunities created by macrotrends Plant, Singapore’s first large-scale, dual-mode Sustainability such as increasing digitalisation, e-commerce employment, opportunities for suppliers Stewardship such as climate change, energy transition desalination plant, capable of treating either Business and the energy transition, which we had and tax revenues for governments. and urbanisation. seawater or rainwater from the Marina Reservoir, identified as part of Vision 2030. commenced operations in June 2020. It is We have set targets to invest in We are refocusing our portfolio on capable of producing about 30 million gallons We believe sustainability can be a good sustainability-linked innovation, and are sustainable urban solutions, including of fresh drinking water per day. In addition, business, and will seize opportunities tapping our engineering nous to explore through the use of internal shadow carbon the ability to switch from treating rainwater in areas such as green developments, greener solutions such as floating data pricing and climate risk assessments. to seawater during drier seasons strengthens environmental solutions, renewables, centres, which are more energy efficient Singapore’s water supply resilience in the face new energy and circular economy solutions. than traditional land-based ones. We are Amidst the global energy transition, of increasing rainfall uncertainty caused by collaborating with partners to study and reflecting Keppel’s commitment to climate change. hydrogen infrastructure for power support climate action, Keppel Offshore generation and cooling, as well as & Marine (Keppel O&M) has been pivoting Keppel O&M secured a contract to build the the development of carbon capture, towards renewables and cleaner fossil first offshore wind turbine installation vessel utilisation and sequestration systems. fuels such as liquefied natural gas. in the US, which is also one of the largest Keppel O&M will also exit the offshore vessels of its kind in the world. Corporate As part of risk management, Keppel has Keppel’s business continuity plans were rigbuilding business, after completing Governance robust business continuity plans in place activated following the COVID-19 outbreak, the existing rigs under construction. Keppel Renewable Energy entered into an & Risk to safeguard against the disruption of allowing us to continue operating effectively agreement to undertake its first solar farm Management business operations. despite the implementation of various project in Australia. measures to curb the spread of the We are committed to being an effective, pandemic around the world, including Keppel has adopted an evolutionary shadow accountable and transparent institution, working from home. carbon pricing policy to mitigate climate-related and will conduct ourselves according to risks in the mid to long term, prepare for the highest ethical standards and comply Keppel’s businesses provide many essential tougher climate legislation and higher with all applicable laws and regulations services – such as power generation, water carbon prices, and also avoid stranded assets. wherever we operate. Our tone on and waste treatment, telecommunications, It starts at US$20 per tonne of carbon dioxide regulatory compliance is clear and data centres and logistics – and we continued consistently reiterated from the top of to operate during the pandemic, including the equivalent (tCO2e) in 2020 and will progressively the organisation. We have zero tolerance Circuit Breaker period in Singapore. increase to US$50/tCO2e over time. for fraud, bribery, corruption and violation Keppel O&M has complied with and In addition, Keppel supported environmental of laws and regulations. successfully concluded the Deferred initiatives such as the National Parks Board’s Prosecution Agreement which it had One Million Trees movement, with a $3 million entered into with the U.S. Department commitment that will go towards the planting of Justice three years ago. of 10,000 trees over the next five years in parks and nature reserves in Singapore. Reflecting Keppel’s zero tolerance for corruption, we have continued to enhance our compliance In line with Keppel’s focus on sustainability measures, including rolling out the ISO 37001 and to advance the study of environmental Anti-Bribery Management System across sciences, Keppel partnered with the business units. Beyond Keppel O&M, which Nanyang Technological University (NTU) had achieved global certification in 2019, the to establish the Keppel Environmental Singapore entities of both Keppel Land and Studies Gold Medals. The Medals will be Keppel Data Centres also achieved ISO 37001 awarded to the top graduating students of certification in 2020. NTU’s Bachelor of Science in Environmental Earth Systems Science. In recognition of Keppel’s strong corporate Environmental We are committed to minimising our We have set high-impact sustainability goals governance disclosures and practices, the Management environmental impact, and are focused and publicly committed to long-term targets Company was ranked sixth on the Singapore on sustainable management and efficient in terms of reducing our carbon intensity, Governance and Transparency Index 2020. use of natural resources. as well as waste and water use. Supply Chain The Group recognises the importance The Group did not experience any major & Responsible of supply chain risk management and supply chain disruptions during the pandemic, We aim to reduce waste generation Keppel Bay Tower, where Keppel Corporation Procurement sustainable procurement in building in part due to the supplier diversification through resource efficiency, recycling is headquartered, was certified by the operational resilience. programmes in place. and reuse of natural resources. Building and Construction Authority (BCA) as Singapore’s first Green Mark Platinum We are committed to building a resilient All our suppliers are qualified in accordance (Zero Energy) commercial building. and diversified supply chain, and we work with our requisition and purchasing policies, closely with our suppliers to make a positive screened based on ESG criteria, and Since the end of 2018, Keppel’s corporate impact on their sustainability performance. are expected to sign and abide by the headquarters in Singapore has been powered Supplier Code of Conduct. by renewable energy. We are also acquiring carbon credits to offset Scope 3 emissions Product Quality We exercise due care and diligence in the We consider proper design, handling, from business travel and employee commuting, & Safety design, construction and operation of our storage and disposal of materials starting thus allowing our corporate office to achieve products and services to ensure that they from the planning stage of our projects. At the carbon neutrality for the whole of 2020. do not pose hazards to customers. project execution stage, we carry out project reviews and quality assurance programmes. Keppel achieved an A- in CDP’s benchmark assessment on climate change, and a B- in We will continue to engage our customers the assessment on water security. for continuous service improvements.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 26 SUSTAINABILITY FRAMEWORK 27
STRATEGIC PILLARS MATERIAL ISSUES SDGs APPROACH HIGHLIGHTS STRATEGIC PILLARS MATERIAL ISSUES SDGs APPROACH HIGHLIGHTS People and Occupational Providing a safe and healthy working Keppel’s first priority in our response to the People and Labour Practices, Our businesses spark economic growth, Keppel is committed to nurturing and developing Safety & Health environment for all stakeholders is COVID-19 pandemic was to safeguard the Talent productivity and jobs. Our hiring policies our employees. As part of the Group’s succession Community fundamental to our commitment to health and safety of our employees, Community Management & ensure equal employment opportunities planning and talent development, we announced conducting business responsibly. customers and stakeholders. Human Rights for all, and we are committed to investing leadership renewal in a few key business units, in nurturing our human capital. effective on 15 February 2021. We are also strong advocates for safety Following the start of the pandemic, the Group and health in the broader community, and rolled out a series of measures, including We uphold and respect the fundamental We continue to actively engage staff, despite champion national and industry initiatives more frequent cleaning of office facilities and principles set out in the UN Universal COVID-19 and work-from-home arrangements. to raise standards and drive innovation temperature screening, as well as implementing Declaration of Human Rights and the We achieved an Employee Engagement Score in these aspects. split teams, alternative work sites, safe distancing International Labour Organisation’s of 87% in 2020, which is higher than Mercer’s and working from home where practical. declaration on fundamental principles global average of 80%. and rights at work. Our stance on In addition, across the Group’s business units, human rights is articulated in our IT collaborative tools and platforms are used to pandemic representatives have been identified corporate statement on human rights, facilitate telecommuting, and virtual townhalls and trained in the protocols and procedures while our stance on diversity and inclusion and other staff engagement initiatives were to handle confirmed and suspected cases is articulated in our corporate statement launched to facilitate communication and ensure of COVID-19. on diversity and inclusion. Both statements that employees’ needs were addressed despite are publicly available online. COVID-19. These included team building activities, From April to June 2020, four COVID-19 mental wellness talks and virtual fitness classes, clusters were announced by Singapore’s as well as medical teleconsultation services. Ministry of Health (MOH) at Keppel Shipyard and at the two dormitories operated by An employee assistance programme was also rolled Keppel Housing. We worked closely with the out to provide mental health support for employees authorities to minimise the spread of the and their dependents whereby employees can coronavirus, including assisting with contact tap on the services of licensed counsellors from tracing, as well as thoroughly deep cleaning the Singapore Counselling Centre for counselling and disinfecting both workplaces and sessions, if such services are needed. dormitories. As no more new cases were Community Through collaboration with our stakeholders, Since the start of the COVID-19 pandemic, Keppel linked to these clusters, the clusters were Development we mobilise and share knowledge, expertise has committed over $5 million to provide support progressively closed. All four clusters were and technology, as well as financial and to communities affected by the pandemic closed by MOH by August 2020. The two human resources to support the achievement in Singapore and overseas. This includes a dormitories which were gazetted as isolation of the SDGs. $4.2 million package to support vulnerable areas in April 2020 were also de-gazetted by communities, including lower income households August 2020 as the situation improved. We encourage and promote effective public, in 1- and 2-room HDB flats who were given public-private and civil society partnerships rebates through M1, Keppel Electric and City Gas, The workforce at Keppel O&M’s yards in through the sponsorship and support of frontline staff, and other communities affected Singapore was reduced from 24,000 in thought leadership and dialogue platforms. by COVID-19. Recognising the challenging early-March 2020 to around 1,200 for environment faced by many Small and Medium much of the second quarter to minimise Enterprises (SMEs) in Singapore, Keppel also transmission risk at the workplace. improved payment terms to SMEs to help The workforce progressively increased improve their cashflow over a six-month period. over time, and reached about 19,500 by end-2020, with safe management measures Beyond supporting those affected by COVID-19, in place. Keppel also made a $2 million donation towards a new National Kidney Foundation dialysis As work resumed at Keppel O&M’s yards, centre at Yishun Community Hospital, which we continued to implement robust safe commenced operations in November 2020. management measures to ensure the health and safety of our workforce, including migrant Despite the restrictions imposed by COVID-19, workers. Such measures include dividing Keppel Volunteers achieved over 10,000 hours the yards into separate zones to further of community work in 2020. increase segregation and reduce the risk of transmissions. Shift work arrangements In 2020, the Group invested $9.6 million1 in were also put in place to reduce the worker social investment spending. density at the yard. We are also working closely with the Singapore authorities to Keppel Care Foundation, the Group’s conduct rostered swabbing of the workers. philanthropic arm, has disbursed over $47 million since its launch in 2012. Beyond Keppel O&M, various safe management measures are also being implemented at our different worksites, plants and projects around the world, in compliance with the SOCIAL INVESTMENT SPENDING BY 1 relevant regulations, to prevent the spread PROJECT TYPE IN 2020 (%) of the virus.
Keppel clinched 21 awards at the Workplace Healthcare/Care for the Underprivileged 63.7 Senior management and union representatives of Keppel O&M distributed care packs to frontline staff and Safety and Health Awards 2020, which is the migrant workers. highest number of awards won by a single The Arts/Sports/Community Development Projects 15.6 organisation for the year. Education 11.5 Environment 6.9 Industry Advancement 2.3 Total $9.6 million 100.0
1 Includes contributions from Keppel directors and employees in support of COVID-19 relief efforts.
Annual Report 2020 Keppel Corporation Limited GROUP OVERVIEW 28 BOARD OF DIRECTORS
Board Committees
N Nominating Committee
A Audit Committee
R Remuneration Committee
BR Board Risk Committee
BS Board Safety Committee
LEE BOON YANG AGE 73 LOH CHIN HUA AGE 59
Chairman Executive Director and Non-Executive and Independent Director Chief Executive Officer
N BSR BS
Date of first appointment as a director: Date of first appointment as a director: 1 May 2009 1 January 2014
Date of last re-election as a director: Date of last re-election as a director: 20 April 2018 23 April 2019
Length of service as a director Length of service as a director (as at 31 December 2020): (as at 31 December 2020): 11 years 8 months 7 years
Board Committee(s) served on: Board Committee(s) served on: Remuneration Committee (Member); Board Safety Committee (Member) Nominating Committee (Member); Board Safety Committee (Member) Academic & Professional Qualification(s): Bachelor in Property Administration, Auckland Academic & Professional Qualification(s): University; Presidential Key Executive MBA, B.V.Sc Hon (2A), University of Queensland, 1971 Pepperdine University; CFA® charterholder
Present Directorships (as at 1 January 2021): Present Directorships (as at 1 January 2021): Listed companies Listed companies Singapore Press Holdings Limited (Chairman) Nil
Other principal directorships Other principal directorships Keppel Care Foundation Limited (Chairman); Keppel Offshore & Marine Ltd (Chairman); Singapore Press Holdings Foundation Limited Keppel Land Limited (Chairman); Keppel (Chairman); Jilin Food Zone Pte Ltd (Chairman); Infrastructure Holdings Pte. Ltd. (Chairman); Jilin Food Zone Investment Holdings Pte. Ltd. Keppel Capital Holdings Pte. Ltd. (Chairman); (Chairman) Keppel Telecommunications & Transportation Ltd (Chairman); Keppel Care Foundation Major Appointments (other than directorships): Limited; M1 Limited Nil Major Appointments (other than directorships): Past Directorships held over the preceding National University of Singapore (Member of 5 years (from 1 January 2016 to Board of Trustees); Singapore Economic 31 December 2020): Development Board (Board Member) Nil Past Directorships held over the preceding Others: 5 years (from 1 January 2016 to Former Minister for Information, 31 December 2020): Communications and the Arts (May 2003 to KrisEnergy Ltd; Various fund companies March 2009); Former Member of Parliament under management of Alpha Investment (December 1984 to April 2011) Partners Limited; Various companies under Keppel Group of companies
Others: Nil
Annual Report 2020 29
ALVIN YEO KHIRN HAI AGE 59 TAN EK KIA AGE 72 DANNY TEOH AGE 65
Non-Executive and Non-Executive and Non-Executive and Independent Director Independent Director Independent Director
NA BS ABR A R BR
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 1 June 2009 1 October 2010 1 October 2010
Date of last re-election as a director: Date of last re-election as a director: Date of last re-election as a director: 23 April 2019 23 April 2019 2 June 2020
Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2020): (as at 31 December 2020): (as at 31 December 2020): 11 years 7 months 10 years 3 months 10 years 3 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Audit (Member); Board Safety Committee (Chairman); Audit Committee (Chairman); Nominating Committee (Member) Board Risk Committee (Member); Remuneration Committee (Member); Audit Committee (Member) Board Risk Committee (Member) Academic & Professional Qualification(s): LLB Honours, King’s College London, Academic & Professional Qualification(s): Academic & Professional Qualification(s): University of London; Gray’s Inn (Barrister-at-Law); BSc Mechanical Engineering (First Class Honours), Associate member of the Institute of Chartered Senior Counsel, Singapore Nottingham University, United Kingdom; Accountants in England & Wales Management Development Programme, Present Directorships (as at 1 January 2021): International Institute for Management Present Directorships (as at 1 January 2021): Listed companies Development, Lausanne, Switzerland; Listed companies United Overseas Bank Limited Fellow of the Institute of Engineers, Malaysia; Nil Chartered Engineer of Engineering Council, Other principal directorships United Kingdom; Member of Institute of Other principal directorships Valencia C.F; GlobalORE Pte Ltd Mechanical Engineers, United Kingdom M1 Limited (Chairman); DBS Bank (Taiwan) Ltd
Major Appointments (other than directorships): Present Directorships (as at 1 January 2021): Major Appointments (other than directorships): WongPartnership LLP (Chairman and Senior Listed companies Nil Partner); Monetary Authority of Singapore KrisEnergy Ltd (Chairman); PT Chandra Asri advisory panel to advise the Minister on appeals Petrochemical Tbk; Transocean Ltd Past Directorships held over the preceding under various financial services legislation 5 years (from 1 January 2016 to (Member); The Court of the Singapore Other principal directorships 31 December 2020): International Arbitration Centre (Member); SMRT Corporation Ltd; Keppel Offshore & CapitaLand Mall Trust Management Limited The Singapore Medical Council’s Panel of Marine Ltd; Star Energy Group Holdings Pte Ltd (Manager of CapitaLand Mall Trust); Disciplinary Tribunal Chairmen (Member); (Chairman); Dialog Systems (Asia) Pte Ltd; JTC Corporation; Ascendas-Singbridge Pte. Ltd.; Panel of Disciplinary Tribunal Chairmen, Singapore LNG Corporation Pte Ltd DBS Bank (China) Limited; Changi Airport Group Supreme Court of Singapore (Member); (Singapore) Pte Ltd; DBS Group Holdings Ltd; Fellow of the Singapore Institute of Arbitrators Major Appointments (other than directorships): DBS Bank Ltd; DBS Foundation Ltd Nil Past Directorships held over the preceding Others: 5 years (from 1 January 2016 to Past Directorships held over the preceding Former Managing Partner, KPMG LLP, 31 December 2020): 5 years (from 1 January 2016 to Singapore; Past member of KPMG’s Thomson Medical Pte. Ltd.; Neptune Orient 31 December 2020): International Board and Council; Lines Limited; Jubilant Pharma Limited; Nil Former Head of Audit and Risk Advisory United Industrial Corporation Limited Services and Head of Financial Services, Others: KPMG LLP Others: Former Vice President (Ventures and Past member: Senate of the Academy of Law; Developments) of Shell Chemicals, Asia Pacific the Council of the Law Society; the board of and Middle East region (based in Singapore); the Civil Service College; Former Member of Former Chairman, Shell companies in Parliament (2006 to 2015) North East Asia; Former Managing Director, Shell Malaysia Exploration and Production
Keppel Corporation Limited GROUP OVERVIEW 30 BOARD OF DIRECTORS
TILL VESTRING AGE 57 VERONICA ENG AGE 67 JEAN-FRANÇOIS MANZONI AGE 59
Non-Executive and Non-Executive and Non-Executive and Independent Director Independent Director Independent Director
NR BR A N BR
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 16 February 2015 1 July 2015 1 October 2018
Date of last re-election as a director: Date of last re-election as a director: Date of last re-election as a director: 2 June 2020 2 June 2020 23 April 2019
Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2020): (as at 31 December 2020): (as at 31 December 2020): 5 years 11 months 5 years 6 months 2 years 3 months
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Remuneration Committee (Chairman); Board Risk Committee (Chairman); Nominating Committee (Chairman); Nominating Committee (Member) Audit Committee (Member) Board Risk Committee (Member)
Academic & Professional Qualification(s): Academic & Professional Qualification(s): Academic & Professional Qualification(s): Master of Economics, University of Bonn, Germany; Bachelor of Business Administration DBA, Harvard Business School, Boston; Master of Business Administration, Haas School (First Class Honours), University of Singapore MBA, McGill University, Montreal; Bachelor, of Business, University of California, Berkeley Business Administration, l’Ecole des Hautes Present Directorships (as at 1 January 2021): Etudes Commerciales de Montréal; Fellow of Present Directorships (as at 1 January 2021): Listed companies the Singapore Institute of Directors Listed companies Nil Inchcape plc Present Directorships (as at 1 January 2021): Other principal directorships Listed companies Other principal directorships Keppel Capital Holdings Pte. Ltd.; Nil Leap Philanthrophy Ltd; Banteasy Srey Eastspring Investments Group Pte. Ltd. Development Limited; Advanced Micro Foundry Other principal directorships Pte. Ltd.; Delaware Consulting International Major Appointments (other than directorships): IMD Foundation Board; IMD Scholarship CVBA Professor (Practice), NUS Business School Foundation
Major Appointments (other than directorships): Past Directorships held over the preceding Major Appointments (other than directorships): Advisory Partner, Bain & Company Southeast Asia 5 years (from 1 January 2016 to President and Nestlé Professor, International 31 December 2020): Institute for Management Development (IMD), Past Directorships held over the preceding Nil Switzerland; Member of several International 5 years (from 1 January 2016 to Advisory panels, including Digital Switzerland 31 December 2020): Others: and Russian Presidential Academy of Singapore Chinese Orchestra Company Limited Founding Partner of Permira (1985 to 2015); National Economy and Public Administration Former Member of the Board and Executive Others: Committee of Permira Past Directorships held over the preceding Nil 5 years (from 1 January 2016 to 31 December 2020): Singapore Civil Service College; Association to Advance Collegiate Schools of Business (AACSB) International
Others: Nil
Annual Report 2020 31
TEO SIONG SENG AGE 66 THAM SAI CHOY AGE 61 PENNY GOH AGE 68
Non-Executive and Non-Executive and Non-Executive and Non-Independent Director Independent Director Independent Director
R BS A BR A BR
Date of first appointment as a director: Date of first appointment as a director: Date of first appointment as a director: 1 November 2019 1 November 2019 2 January 2020
Date of last re-election as a director: Date of last re-election as a director: Date of last re-election as a director: 2 June 2020 2 June 2020 2 Jun 2020
Length of service as a director Length of service as a director Length of service as a director (as at 31 December 2020): (as at 31 December 2020): (as at 31 December 2020): 1 year 2 months 1 year 2 months 1 year
Board Committee(s) served on: Board Committee(s) served on: Board Committee(s) served on: Remuneration Committee (Member); Audit Committee (Member); Audit Committee (Member); Board Safety Committee (Member) Board Risk Committee (Member) Board Risk Committee (Member)
Academic & Professional Qualification(s): Academic & Professional Qualification(s): Academic & Professional Qualification(s): Degree (First Class Honours) in Naval Bachelor of Arts (Honours) in Economics, Bachelor of Law (Honours), University Architecture and Ocean Engineering from University of Leeds, United Kingdom; of Singapore the University of Glasgow, United Kingdom Fellow of the Institute of Singapore Chartered Accountants and the Institute of Chartered Present Directorships (as at 1 January 2021): Present Directorships (as at 1 January 2021): Accountants in England and Wales Listed companies Listed companies Keppel REIT Management Limited (the Manager Singamas Container Holdings Ltd.; COSCO Present Directorships (as at 1 January 2021): of Keppel REIT) (Chairman) Shipping Holding Co., Ltd.; COSCO Shipping Listed companies Energy Transportation Co., Ltd.; Wilmar DBS Group Holdings Limited Other principal directorships International Limited HSBC Bank (Singapore) Limited; Other principal directorships Singapore Totalisator Board Other principal directorships DBS Bank Ltd.; DBS Bank (China) Limited; Pacific International Lines (Pte) Ltd DBS Foundation Ltd; EM Services Pte Ltd Major Appointments (other than directorships): (Chairman); Keppel Offshore & Marine Ltd; Allen & Gledhill LLP (Senior Adviser) Major Appointments (other than directorships): Mount Alvernia Hospital; Singapore Singapore Chinese Chamber of Commerce & International Arbitration Centre Past Directorships held over the preceding Industry (Honorary President); Business China 5 years (from 1 January 2016 to (Director); The United Republic of Tanzania in Major Appointments (other than directorships): 31 December 2020): Singapore (Honorary Consul) Accounting and Corporate Regulatory Authority Mapletree Logistics Trust Management Ltd (Board member); Nanyang Polytechnic (the Manager of Mapletree Logistics Trust); Past Directorships held over the preceding (Board member) Eastern Development Private Limited; Eastern 5 years (from 1 January 2016 to Development Holdings Pte Ltd; Allen & Gledhill 31 December 2020): Past Directorships held over the preceding Regulatory & Compliance Pte. Ltd. The Standard Club Asia Ltd; Singapore 5 years (from 1 January 2016 to Maritime Institute; Duke-NUS Development 31 December 2020): Others: Committee; Enterprise Singapore Singapore Accountancy Commission; Former Co-Chairman and Senior Partner KPMG Group of Companies; Singapore of Allen & Gledhill LLP Others: Institute of Directors (Chairman); Former Member of Future Economy Council Housing & Development Board
Others: Nil
Keppel Corporation Limited GROUP OVERVIEW 32 KEPPEL GROUP BOARDS OF DIRECTORS
KEPPEL OFFSHORE & MARINE KEPPEL LAND KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LOH CHIN HUA LOH CHIN HUA Chairman Chairman LOH CHIN HUA Chief Executive Officer, Chief Executive Officer, Chairman Keppel Corporation Keppel Corporation Chief Executive Officer, Keppel Corporation CHRIS ONG LENG YEOW LOUIS LIM Chief Executive Officer Chief Executive Officer THOMAS PANG THIENG HWI (effective 15 Feb 2021) Chief Executive Officer STEPHEN PAN YUE KUO Chairman, TAN SWEE YIOW PROF NEO BOON SIONG World-Wide Shipping Agency Limited Senior Managing Director Director of Urban Development, PO’AD BIN SHAIK ABU BAKAR MATTAR Keppel Corporation KARMJIT SINGH Independent Director, Director Hong Leong Finance Limited TAN YAM PIN Former Managing Director, LIM CHIN LEONG Fraser and Neave Group TAN EK KIA Director Chairman, Star Energy Group Holdings Pte Ltd KOH-LIM WEN GIN CHAN HON CHEW Former URA Chief Planner and Chief Financial Officer, Deputy Chief Executive Officer LIM CHIN LEONG Keppel Corporation Former Chairman of Asia, Schlumberger YAP CHEE MENG KHOR POH HWA Former Senior Partner, Director ROBERT D. SOMERVILLE KPMG Singapore and COO of KPMG International Member, MRS LEE AI MING Maine Maritime Academy Board of Trustee for the Asia Pacific Region Senior Consultant, Dentons Rodyk & Davidson LLP CHAN HON CHEW WILLY SHEE PING YAH Chief Financial Officer, Senior Advisor and Former Asia Chairman, Keppel Corporation CBRE KEPPEL INFRASTRUCTURE THAM SAI CHOY CHAN HON CHEW Independent Director, Chief Financial Officer, Keppel Corporation Keppel Corporation LOH CHIN HUA Chairman Chief Executive Officer, Keppel Corporation
CINDY LIM Chief Executive Officer (effective 15 Feb 2021)
CHAN HON CHEW Chief Financial Officer, Keppel Corporation
KHOO CHIN HEAN Director
SHIRISH APTE Director
LOUIS LIM Chief Executive Officer, Keppel Land
Annual Report 2020 33
KEPPEL CAPITAL KEPPEL DC REIT MANAGEMENT KEPPEL PACIFIC OAK US REIT (MANAGER OF KEPPEL DC REIT) MANAGEMENT (MANAGER OF LOH CHIN HUA KEPPEL PACIFIC OAK US REIT) Chairman CHRISTINA TAN HUA MUI Chief Executive Officer, Chairman Keppel Corporation PETER MCMILLAN III Chief Executive Officer, Chairman Keppel Capital CHRISTINA TAN HUA MUI Co-founder, Pacific Oak Capital Advisors LLC Chief Executive Officer KENNY KWAN Lead Independent Director and Principal, CHAN HON CHEW SOONG HEE SANG Baker & McKenzie Lead Independent Director Chief Financial Officer, Keppel Corporation LEE CHIANG HUAT JOHN J. AHN Independent Director THOMAS PANG THIENG HWI President, Whitehawk Capital Partners, L.P. Chief Executive Officer, DR TAN TIN WEE Keppel Telecommunications & Transportation Chief Executive, KENNETH TAN JHU HWA National Supercomputing Centre, Singapore TOW HENG TAN Co-Managing Partner and Managing Director, Southern Capital Group Private Limited Chief Executive Officer, DILEEP NAIR Pavilion Capital International Pte. Ltd. Independent Director PAUL THAM VERONICA ENG Chief Executive Officer, LOW HUAN PING Keppel REIT Management Independent Director, Independent Director (Manager of Keppel REIT) Keppel Corporation THOMAS PANG THIENG HWI Chief Executive Officer, KEPPEL REIT MANAGEMENT Keppel Telecommunications & Transportation M1 (MANAGER OF KEPPEL REIT) DANNY TEOH KEPPEL INFRASTRUCTURE FUND Chairman MRS PENNY GOH Director Chairman MANAGEMENT (TRUSTEE-MANAGER Senior Adviser, OF KEPPEL INFRASTRUCTURE TRUST) MANJOT SINGH MANN Allen & Gledhill LLP Chief Executive Officer KOH BAN HENG ALAN RUPERT NISBET LOH CHIN HUA Independent Director Chairman (appointment till 1 Feb 2021) Chief Executive Officer, Keppel Corporation LEE CHIANG HUAT DANIEL CUTHBERT EE HOCK HUAT Independent Director Chairman CHAN HON CHEW (effective 1 Feb 2021) Chief Financial Officer, LOR BAK LIANG Keppel Corporation Independent Director THIO SHEN YI Joint Managing Director, TAN WAH YEOW CHRISTINA TAN HUA MUI TSMP Law Corporation Director Chief Executive Officer, Keppel Capital MARK ANDREW YEO KAH CHONG GUY DANIEL HARVEY SAMUEL Independent Director Director TAN SWEE YIOW Senior Managing Director, KUNNASAGARAN CHINNIAH THOMAS PANG THIENG HWI Urban Development Independent Director Chief Executive Officer, Keppel Telecommunications & Transportation IAN RODERICK MACKIE SUSAN CHONG SUK SHIEN Independent Director Independent Director JANICE WU SUNG SUNG (effective 5 Mar 2021) Executive Vice President, FONG MUN NGIN, MERVYN Corporate Development, Independent Director CHRISTINA TAN HUA MUI Singapore Press Holdings (effective 1 Mar 2021) Chief Executive Officer, Keppel Capital JULIAN TAN WOON-KA Chief of Digital Business, Singapore Press Holdings
Keppel Corporation Limited GROUP OVERVIEW 34 KEPPEL TECHNOLOGY ADVISORY PANEL
From left: Professor Stefan Thomke, Mr Loh Chin Hua (CEO of Keppel Corporation), Mr Peter Noble, Professor Ng Wun Jern, Mr Chua Kee Lock, Dr Lee Boon Yang (Chairman of Keppel Corporation) and Dr Romain Debarre.
Established in 2004, the Keppel Technology Advisory Panel (KTAP) includes eminent PROFESSOR NG WUN JERN THE KEPPEL business leaders and industry experts from TECHNOLOGY across the world. KTAP members provide Chairman ADVISORY PANEL technology foresight for Keppel, advise on BSc (Civil Engineering) QMC London University; strategic projects and provide contacts to MSc (Water Resources) and PhD University SEEKS TO ADVANCE broaden Keppel’s networks. of Birmingham, PE(S), CE (S), FIES, MSAEng THE GROUP’S In 2020, KTAP focused on the Vision 2030 Professor Ng was the founding Executive TECHNOLOGY themes of Energy & Environment, Urban Director at the Nanyang Environment & Development, Connectivity and Asset Water Research Institute, and President’s LEADERSHIP. Management, with individual topics dedicated Chair Professor at the School of Civil & to the Vision 2030 growth engines. These Environmental Engineering, Nanyang topics included the energy transition and Technological University. He has some the resultant opportunities in renewable 400 publications on water, wastewater and waste management, and soil remediation. energy such as offshore wind and hydrogen; He has founded spin-off companies based the increasing demand for PropTech across on his IPs, and serves as technical advisor to asset classes; the 5G eco-system, as well government agencies, established environmental as the changes in consumer behaviour and companies, incubators and private equity funds lifestyle as a result of COVID-19, amongst while also guiding start-up companies active in others. This lays the foundation for Keppel’s ASEAN, China and South Asia. transformation plans to be one integrated business and a provider of end-to-end solutions for sustainable urbanisation.
Annual Report 2020 35
PROFESSOR STEFAN THOMKE PETER NOBLE
BSc (Electrical Engineering), University of Fellow, Land Medalist and Past-President, Oklahoma; MSc (Electrical & Computer Society of Naval Architects & Marine Engineering), Arizona State University; Engineering, USA; Fellow and Vice President, SM (Operations Research), SM (Mgmt.), The Institute of Marine Engineering, PhD (Electrical Engineering & Mgmt.), Science and Technology, UK; Massachusetts Institute of Technology; Fellow, Canadian Academy of Engineering; Dr. rer. oec. (Honorary), HHL Leipzig Offshore Technology Distinguished Graduate School of Management; Achievement Award for Individuals; AM (Honorary), Harvard University B.Sc. Naval Architecture, University of Glasgow
Professor Thomke has published widely and Mr Noble is a naval architect and ocean is an authority on innovation management. engineer with a wide range of expertise He is the William Barclay Harding Professor and experience in the marine and offshore of Business Administration at Harvard industries. His career has included positions Business School and has chaired several of with shipyards, ship and offshore design the university’s executive education programmes. consultants, offshore and marine research Prior to joining Harvard, he was with McKinsey and development companies, and major & Company in Germany. classification societies, as well as chief naval architect with an international oil company. He currently undertakes consulting and advisory assignments across a broad range CHUA KEE LOCK of topics relating to ocean engineering.
BSc. (Mechanical Engineering), Mr Noble holds a number of patents and University of Wisconsin at Madison; is active on the advisory boards of several M.Eng, Stanford University universities and institutions.
Mr Chua is CEO of Vertex Holdings, a Singapore-headquartered venture capital DR ROMAIN DEBARRE investment holding company. PhD French Petroleum Institute & CNRS, Vertex Group is a global venture capital network MBA HEC Paris, MSc IFP-School comprising four early stage technology focused funds (Vertex Ventures China, Vertex Ventures Israel, Vertex Ventures US, Vertex Ventures Dr Debarre is the Managing Director of SEA & India), an early stage healthcare-focused the Kearney Energy Transition Institute. fund (Vertex Ventures HC) and a growth stage He brings a combined experience in energy, fund (Vertex Growth). Each of these funds business strategy and scientific research. is managed by independent and separate He is a recognised energy expert who forges General Partnerships and investment teams, close ties between governments, companies with Vertex Holdings providing anchor funding and academics to leverage technological alongside significant third party capital opportunities and reduce carbon emissions. commitments. He is concurrently Managing Partner of Vertex Ventures SEA & India as Prior to joining Kearney, Dr Debarre was with well as Chairman of Vertex Growth Fund. Schlumberger Business Consulting, where he led the SBC Energy Institute. He previously Prior to this, Mr Chua held senior positions worked in corporate finance, managed strategy in Biosensors International Group, a consulting projects in the energy sector in developer/manufacturer of medical devices, various countries and spent several years in Walden International, a US-headquartered scientific research and development. He is venture capital firm, NatSteel, a Singapore the co-author of several reports on energy industrial products company, and Intraco, technologies and energy transition topics. a Singapore-listed trading/distribution company. He also co-founded MediaRing, a provider of voice-over-internet, which later listed on Singapore’s stock exchange. He currently serves on the boards of several companies, including Yongmao, a Singapore public-listed company.
Keppel Corporation Limited GROUP OVERVIEW 36 SENIOR MANAGEMENT
MARTIN LING DR ONG TIONG GUAN KEPPEL CORPORATION General Manager Chief Executive Officer Group Cyber Security Keppel Infrastructure (effective 1 Jan 2021) (appointment till 14 Feb 2021) LOH CHIN HUA Chief Executive Officer JAGGI RAMESH KUMAR CINDY LIM General Manager Chief Executive Officer CHAN HON CHEW Group Health, Safety & Environment Keppel Infrastructure Chief Financial Officer (effective 15 Feb 2021) ERIC GOH Chief Representative, China LIM SIEW HWA CORPORATE SERVICES Chief Financial Officer LINSON LIM Keppel Infrastructure Chief Representative, Vietnam CINDY LIM TAN BOON LENG Director HO KIAM KHEONG Managing Director, Group Corporate Development India Representative Project Development and Corporate Office Managing Director Keppel Infrastructure Keppel Urban Solutions TAY LIM HENG (appointments till 14 Feb 2021) Chief Executive Officer JANICE BONG Sino-Singapore Tianjin Eco-City Executive Director, FRANCOIS VAN RAEMDONCK Investment and Development Power and Gas Director Keppel Infrastructure Group Strategy & Development Managing Director CHUA YONG HWEE Keppel Technology & Innovation ENERGY & ENVIRONMENT Executive Director, New Energy CHUA HSIEN YANG Keppel Infrastructure Director CHRIS ONG Group Mergers & Acquisitions Chief Executive Officer Keppel Offshore & Marine JACKSON GOH (effective 15 Feb 2021) Executive Director, KEVIN CHNG Environment YEO MENG HIN Keppel Infrastructure Director Chief Financial Officer Keppel Offshore & Marine Group Human Resources MILO DOCHOW Executive Director, LYNN KOH CHOR HOW JAT Managing Director Corporate Development Director Keppel Infrastructure Group Treasury (Conversions & Repairs) Keppel Offshore & Marine HO TONG YEN Director TAN LEONG PENG URBAN DEVELOPMENT Group Corporate Communications Managing Director (New Builds) Keppel Offshore & Marine TAN SWEE YIOW CAROLINE CHANG Chief Executive Officer General Manager Keppel Land Group Legal RON MACLNNES President (appointment till 14 Feb 2021) Keppel Offshore & Marine USA Senior Managing Director TOK SOO HWA and Keppel LeTourneau Urban Development General Manager (effective 15 Feb 2021) Group Control & Accounts MOHD SAHLAN BIN SALLEH President LOUIS LIM SEPALIKA KULASEKERA Keppel AmFELS Chief Executive Officer General Manager (effective 15 Feb 2021) Group Internal Audit MARLIN KHIEW Chief Operating Officer President (appointment till 14 Feb 2021) KENNY MOK Keppel FELS Brasil Keppel Land General Manager Group Risk & Compliance LEONG KOK WENG TAN BOON PING President Chief Financial Officer TAY GUAN CHEW Keppel Philippines Marine Keppel Land General Manager Group Tax NG SENG CHONG BEN LEE President Chief Operating Officer JASON CHIN Keppel Nantong Shipyard (effective 15 Feb 2021) General Manager Keppel Nantong Heavy Industries President, China Group Information Technology (effective 1 Jan 2021) Keppel Land
Annual Report 2020 37
NG OOI HOOI President, Singapore and ASSET MANAGEMENT UNIONS Regional Investments Keppel Land CHRISTINA TAN KEPPEL FELS EMPLOYEES’ UNION Chief Executive Officer JOSEPH LOW Keppel Capital President, Vietnam MAHMOOD BIN ALI Keppel Land President (effective 15 Feb 2021) BRIDGET LEE Chief Operating Officer ATYYAH BINTI HASSAN Keppel Capital LINSON LIM General Secretary (effective 15 Feb 2021) President, Vietnam Chief Executive Officer Keppel Land Keppel Capital Alternative Asset (appointment till 14 Feb 2021) KEPPEL EMPLOYEES’ UNION ANG SOCK CHENG SAMUEL HENRY NG Chief Financial Officer President, Indonesia Keppel Capital MOHAMED NASIR AHMAD Keppel Land President (effective 15 Feb 2021) PAUL THAM Chief Executive Officer ATAN ENJAH GOH YORK LIN Keppel REIT Management General Secretary President, Indonesia Keppel Land (appointment till 14 Feb 2021) MATTHEW POLLARD Chief Executive Officer SHIPBUILDING & MARINE Keppel Infrastructure Fund Management HO KIAM KHEONG ENGINEERING EMPLOYEES’ UNION President, India Keppel Land CHUA HSIEN YANG Chief Executive Officer EILEEN YEO Keppel DC REIT Management General Secretary (appointment till 14 Feb 2021) NTUC Central Committee Member CONNECTIVITY ANTHEA LEE Chief Executive Officer THOMAS PANG Keppel DC REIT Management SINGAPORE INDUSTRIAL & Chief Executive Officer (effective 15 Feb 2021) SERVICES EMPLOYEES’ UNION Keppel Telecommunications & Transportation DAVID SNYDER TAN ENG HWA SAZALI BIN ZAINAL Chief Executive Officer President Chief Financial Officer Keppel Pacific Oak US REIT Management Keppel Telecommunications & Transportation RICHARD SIM ALVIN MAH General Secretary WONG WAI MENG Chief Executive Officer Chief Executive Officer Alpha Investment Partners Keppel Data Centres SYLVIA CHOO Executive Secretary DEVARSHI DAS DESMOND GAY Chief Executive Officer Chief Executive Officer (Infrastructure) Keppel Logistics Keppel Capital Alternative Asset UNION OF POWER & GAS EMPLOYEES MANJOT SINGH MANN Chief Executive Officer TAY SENG CHYE M1 President
LEE KOK CHEW ABDUL SAMAD BIN ABDUL WAHAB Chief Financial Officer General Secretary M1 S. THIAGARAJAN MUSTAFA KAPASI Executive Secretary Chief Commercial Officer M1
DENIS SEEK Chief Technical Officer M1
WILLIS SIM Chief Corporate Sales and Solutions Officer M1
NATHAN BELL Chief Digital Officer M1
Keppel Corporation Limited GROUP OVERVIEW 38 INVESTOR RELATIONS
In 2020, we stepped up efforts to engage During the year, we transited to half-yearly WE ARE COMMITTED the investment community via digital reporting in accordance with the SGX’s means amidst the COVID-19 pandemic. regulation on risk-based quarterly reporting. TO CLEAR, TIMELY These include helping the investment Notwithstanding this, Keppel Corporation AND CONSISTENT community understand how Keppel continued to provide voluntary business was seizing opportunities, responding updates in between the half-yearly results, COMMUNICATION to the pandemic, Keppel’s Vision 2030 in line with our commitment to maintain WITH THE INVESTMENT (which was unveiled in May 2020), as well good communication with shareholders as the subsequent plans to accelerate and the investment community. COMMUNITY. the execution of Vision 2030. Presently, 15 sell-side research houses, Vision 2030 outlined Keppel’s long-term with analysts based in Singapore and growth and transformation strategy to be Malaysia, provide coverage on Keppel an integrated business, providing solutions Corporation. In addition to semi-annual for sustainable urbanisation. As part results briefings and voluntary business of Vision 2030, Keppel has focused its updates, we held briefings for media and business on four key areas, namely analysts on the Company’s Vision 2030. Energy & Environment, Urban Development, We continue to actively engage and Connectivity and Asset Management, all part maintain close interactions with our of a connected value chain. Through regular sell-side analysts, working with them disclosures and continuous efforts to to help the investment community better engage analysts and investors, we seek understand and appreciate the value to help the investment community better of the Company. SHAREHOLDING BY INVESTORS (%) understand Keppel’s strategy and keep abreast of the Group’s progress and As part of our ongoing efforts to engage latest developments. retail shareholders, Keppel Corporation’s Chief Executive Officer and Chief Financial INVESTOR AND ANALYST Officer updated our retail shareholders ENGAGEMENT on the Company’s developments at the During the year, we held about 210 annual meeting organised by Securities virtual meetings and conference calls Investors Association (Singapore) (SIAS). with institutional investors, including The event, which was held virtually virtual non-deal roadshows with investors this year, drew about 120 participants. from Hong Kong, Malaysia, Singapore, In 2020, our contribution towards the the UK and the US, and an online SIAS Investor Education Programme conference organised by the Singapore benefitted around 2,500 retail shareholders, Institutions 51.2 Exchange (SGX) and Credit Suisse. We also who as complimentary members of Retail 48.8 held our inaugural virtual Annual General the Association, enjoy access to a wide Meeting (AGM), which was attended by range of seminars, workshops and Total 100.0 some 230 shareholders. other support.
SHAREHOLDING BY GEOGRAPHY (%)
Singapore 32.6 Asia (ex Singapore) 5.6 North America 9.4 Europe 7.8 Others* 44.6 Total 100.0
* Others comprise the rest of the world, as well as Keppel Corporation’s senior management engaged the media and investment community at the 2H & FY 2020 unidentified holdings and holdings below the results webcast. analysis threshold as at 10 February 2021.
Annual Report 2020 39
INVESTOR RELATIONS RESOURCES To ensure fair and timely dissemination of information, we post all announcements on our corporate website promptly after they are released on SGXNet.
Despite COVID-19, in 2020, we continued to hold “live” webcasts of our half-yearly results briefings, which facilitate real-time interaction with Keppel’s senior management. An archive of the webcast and management speeches, together with the presentation materials, are made available on our website on the same day the results are released on SGXNet. A transcript of the questions and answers session is also released on SGXNet and posted on our website before the start of the next trading day. Dr Lee Boon Yang, Chairman of Keppel Corporation (right) and the Company’s Board of Directors interacted with shareholders at the Company’s virtual AGM in 2020. Similarly, the presentation materials of our voluntary business updates are made available at our website on the same day they are released on SGXNet, while a transcript of the questions and CORPORATE WEBSITE Following the unveiling of Vision 2030, answers session held with analysts is Our mobile‑friendly corporate website we refreshed the corporate website also released on SGXNet and posted www.kepcorp.com provides access to reflect the Company’s new business on our website before the start of the to company announcements, half-yearly segments, which highlight our focus next trading day. results and voluntary business updates, and growth areas. We also augmented annual reports, investor events, stock our website with videos and social media To facilitate shareholders’ communication and dividend information and investor sharing links, thereby further improving with the Board of Directors, shareholders presentation slides. Contact information our website’s interactivity and accessibility. were invited to submit their questions of our Investor Relations (IR) personnel for the Board prior to our inaugural virtual (email: [email protected]) SHAREHOLDER INFORMATION AGM. The responses to key questions can also be found on the website. All IR As at 10 February 2021, institutions received from shareholders were released activities are guided by the principles and formed 51.2% of our shareholder base, on SGXNet and made available on our guidelines set out in the Company’s IR while retail investors accounted for website prior to the event. In the same spirit, policy, which is regularly reviewed and the remaining 48.8%. Shareholders in the presentation materials, results and available on Keppel Corporation’s website. Singapore held approximately 32.6% minutes of the virtual AGM were also The policy articulates guiding principles that of our issued capital, while those in the released on SGXNet and made available ensure the timely, transparent and accurate rest of Asia held 5.6%, North America on our website concurrently. disclosures of material information. 9.4% and Europe 7.8%.
INVESTOR RELATIONS CALENDAR The following key events were held in 2020 to engage our investors and analysts:
Q1 Q2 Q3 Q4 4Q & FY 2019 results 1Q 2020 results teleconference 2Q & 1H 2020 online results 3Q & 9M 2020 business conference and live webcast. for media & analysts. conference and live webcast. updates teleconference for media & analysts. Virtual non-deal roadshows Virtual non-deal roadshow with with investors from Malaysia, investors in Singapore and Hong Kong, the US and the UK. overseas hosted by UBS.
Media & analyst virtual briefing Media & analyst virtual briefing on Vision 2030. on the next steps in Vision 2030.
Live webcast of Keppel Keppel Corporation’s Corporation’s 52nd AGM, Virtual Meeting for Retail held by electronic means. Shareholders hosted by SIAS.
Participation in the SGX-Credit Virtual non-deal roadshow with Suisse Singapore Virtual investors in Singapore and Corporate Day. overseas hosted by JP Morgan.
Keppel Corporation Limited GROUP OVERVIEW 40 SIGNIFICANT MILESTONES
Q1 Urban Development Keppel Land entered Taicang City in Jiangsu, Corporate China, with the acquisition of a 49% stake Keppel Corporation was upgraded to a triple-A in a 5.85-hectare (ha) residential site for rating in the Morgan Stanley Capital International about $97 million. environmental, social and governance ratings. Keppel Land announced the divestment Energy & Environment of Stamford City in Jiangyin, Jiangsu, Keppel Offshore & Marine (Keppel O&M) China for a consideration of about delivered two projects, namely the fifth of $95 million. 11 jackup rigs to Borr Drilling and a Floating Production Storage and Offloading (FPSO) vessel Connectivity FPSO Abigail-Joseph, delivered to Yinson, modification and upgrading project to Yinson. M1 and Starhub submitted a joint bid for a is Keppel O&M’s 134th floating production vessel. 5G licence in Singapore. Keppel Infrastructure secured contracts from Abellon Clean Energy worth about $18 million Asset Management to supply waste-to-energy (WTE) technology Keppel Capital launched the US$1 billion As its first asset, KAIF acquired solutions and services to WTE plants in Keppel Asia Infrastructure Fund (KAIF), a 30% interest in Gimi MS Corporation, Gujarat, India. which achieved its first closing. which owns the Gimi FLNG vessel.
M1, IMDA, IBM and Samsung announced a Q2 Connectivity collaboration on Singapore’s first 5G Keppel Data Centres Holding (KDCH) Industry 4.0 trial to demonstrate the Corporate signed MOUs with Toll Group and transformative impact of 5G for enterprises. Keppel Corporation unveiled Vision 2030 Royal Vopak respectively to study the to drive the Company’s long-term strategy feasibility of developing a Floating Data M1, IMDA and Maritime and Port Authority of and transformation. Centre Park (FDCP) and LNG-to-power Singapore partnered with Airbus to conduct infrastructure in Singapore. coastal 5G standalone network trials at the Energy & Environment Singapore Maritime Drone Estate. Keppel O&M delivered the sixth of 11 KDCH signed an MOU with Mitsubishi Asset Management jackup rigs to Borr Drilling. Heavy Industries Asia Pacific to jointly explore the implementation KAIF, together with the Fund’s co-investment Keppel Infrastructure, through a Keppel-led of the hydrogen powered tri-generation vehicles, achieved its second closing with consortium, secured a contract worth about plant concept for data centres aggregate commitments of US$570 million $1.5 billion to develop a WTE facility and a in Singapore. including impending commitments. materials recovery facility for Singapore’s Tuas Nexus Integrated Waste Management Facility. KDCH and Singapore Press Holdings Alpha Investment Partners (Alpha), announced the development of a new together with Manulife and Mega Keppel Infrastructure commenced data centre to be located at Genting Lane Manunggal Property, launched a new commercial operations for Keppel Marina in Singapore. Indonesian logistics property venture. East Desalination Plant, Singapore’s fourth desalination plant. M1 and Starhub were granted the Keppel Telecommunications & Transportation final 5G network license award from sold about 2.33% of the total issued units in Keppel Infrastructure Trust and Keppel Energy, Infocomm Media Development Keppel DC REIT for a total cash consideration through a joint venture (JV), secured a Authority (IMDA). of about $92 million. 7-year $700 million sustainability-linked loan from DBS Bank and OCBC Bank for their jointly owned gas-fired co-generation plant, Keppel Merlimau Cogen Plant.
Keppel O&M and Energy Market Authority (EMA) forged a $10 million partnership and signed a Memorandum of Understanding (MOU) to develop energy solutions for the marine sector.
Keppel O&M announced the development of the Floating Living Lab, the first-of-its-kind offshore floating testbed in Singapore.
Urban Development Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) sold a residential land plot in the Sino-Singapore Tianjin Eco-City (Eco-City) for about RMB 1.2 billion. Development of the Eco-City continued in 2020 with the sale of two residential land plots in the Central and South districts.
Annual Report 2020 41
KDCH signed an MOU with other Q3 Energy & Environment industry leaders to jointly develop Keppel O&M secured four contracts Singapore’s first end-to-end Corporate worth about $270 million namely decarbonisation process. Keppel reaffirmed Vision 2030 and announced two FPSO fabrication and asset monetisation plans to unlock value integration projects, an LNG Asset Management from assets, as well as the strategic review carrier to Floating Storage and Keppel Capital entered into a strategic of the offshore & marine business. Regasification Unit conversion and cooperation with the National Pension a newbuild Trailing Suction Hopper Service of Korea to explore investment Keppel Corporation achieved sixth position, Dredger (TSHD). opportunities for private infrastructure out of almost 600 Singapore-listed companies, in Asia. in the Singapore Governance and Transparency Keppel DHCS and its JV partners Index 2020. secured a contract worth about Keppel Capital raised more than $330 million for a district cooling system half of its target commitment of in Bangkok, Thailand. US$500 million for the Keppel Education Asset Fund (KEAF). The Fund acquired, Urban Development as its first asset, a 70% stake in Keppel Land announced a collaboration a premium bilingual K12 school property with TVS Emerald to jointly develop operated by Malvern College Chengdu a premium residential project in in Sichuan, China. Chennai, India. Alpha Data Centre Fund expanded into SSTEC sold two industrial land plots China with the planned development in the Eco-Innovation Park with a total area of a greenfield data centre located of 8.44 ha. in the Tonghu Smart City in Huizhou, Guangdong, China. Keppel Data Centres Connectivity will collaborate with local partners to KEAF acquired a 70% stake in a school property M1 launched its 5G non-standalone network implement global best practices for operated by Malvern College Chengdu as its first asset. to all customers. operations in this data centre.
Keppel O&M delivered three projects namely an Keppel Land acquired a strategic minority Q4 LNG carrier to Avenir LNG, an LNG bunkering stake in Cove Living. vessel to FueLNG and a TSHD to Jan De Nul. Corporate Keppel Land announced divestments As part of the 100-day plan under Keppel O&M announced the successful of five projects across China, Singapore, Vision 2030, the Group progressively conclusion of its US Deferred the UK and Vietnam for a total consideration announced over $1.2 billion of divestments. Prosecution Agreement. of over $1.2 billion. Keppel DHCS secured a $300 million contract SSTEC sold the last residential land plot The Keppel Group swept 21 awards at the from JTC to build, own and operate a district in the Eco-City’s South District for about Workplace Safety and Health Awards 2020. cooling system (DCS) plant in Bulim Phase 1 RMB 669 million. of the Jurong Innovation District in Singapore. The Keppel Group was recognised for its Connectivity sustainability efforts in the 2020 Global Real Keppel O&M and EMA jointly awarded a KDCH, City Gas and City-OG Gas Energy Estate Sustainability Benchmark assessment. research grant to a consortium led by Services signed an MOU to explore using Envision Digital to pilot Singapore’s first LNG and hydrogen to power KDCH’s FDCP Keppel Corporation announced leadership floating Energy Storage System. changes for several key business units as in Singapore. part of the Group’s succession planning and Urban Development Asset Management leadership renewal. Keppel Land formed a JV partnership to Keppel Capital and Keppel Land launched own and develop an 8.4-ha residential site Keppel Corporation scored an A- in the CDP the US$600 million Keppel Vietnam Fund, in Jiading District, Shanghai, China. 2020 Climate Change Assessment. which achieved its first closing.
Energy & Environment Keppel Capital launched its second data centre fund, Keppel Data Centre Fund II, Keppel Renewable Energy entered into an with target fund size of US$1 billion, agreement to acquire a 45% stake in Harlin which achieved its first closing. Solar, to develop and manage the construction and operation of a large-scale greenfield Keppel REIT acquired Pinnacle Office Park solar farm in Queensland, Australia. in Sydney, Australia and announced the proposed acquisition of Keppel Bay Tower Keppel O&M secured contracts worth about in Singapore. $700 million for the engineering, procurement and construction of one of the world’s largest Keppel Capital launched the follow-on wind turbine installation vessels in the US Alpha Asia Macro Trends Fund IV Keppel DHCS will build, own and operate a DCS plant in from Dominion Energy, as well as an FPSO Bulim Phase 1 of Singapore’s Jurong Innovation District. with a target fund size of US$1 billion, conversion project from a repeat customer. which achieved its first closing.
Keppel Corporation Limited