Issue 3 / 2018 www.kepcorp.com/ekeppelite

Celebrating Eco-City enters new 50 years phase of development 24

Celebrating as OneKeppel 26

Shaping cities of the future 32

Envisaging FutureKeppel

MCI (P) 042/01/2018 Contents 2

26 38

47 52

SUSTAINING GROWTH Driving sustainability 22 Spurring Innovations Forging ahead 4 Improving productivity with 41 Eco-City enters new phase of 24 technology Resilient performance 8 development EMPOWERING LIVES In conversation 11 SPECIAL FOCUS Enriching minds 42 Celebrating as OneKeppel 26 Pursuing expansion 14 Scaling new heights 43 Providing urban solutions 31 Stable distributions Encouraging innovation 44 Vessels of tomorrow Sustainable returns 15 Engaging union members Shaping cities of the future 32 Steady growth Keppelites Around the World Leading the green building 34 Spirit of adventure 45 Delivering value 16 movement Homes in the Gardens NURTURING COMMUNITIES Enhancing customer experience Raising eco-consciousness 46 Keppel sells five existing rigs to 17 Leader in ship repair 35 Borr Drilling Keppel Volunteers At the forefront of new energy Making a difference 47 Singapore’s first VLCC scrubber 18 retrofit Expanding networks 36 GETTING TO KNOW YOU Spotlight on: Chris Ong 50 Data centre portfolio expansion Engaging investors 37 BACK PAGE Environmental accolades 19 HSEMATTERS A leader in LNG solutions 52 Towards zero fatalities 38 Bolstering leadership 20 Insightful sharing 40 Dual-fuel dredger contracts secured 21 En bloc sale of residential projects

<< Cover image: In commemoration of Keppel Corporation’s 50th anniversary, senior management and employees from across the Group assembled in a ‘K50’ human formation against the backdrop of Keppel Bay at the Keppel 50 Charity Run. Joining them were President Halimah Yacob (centre); Dr Lee Boon Yang (first from President’s right), Chairman of Keppel Corporation; Mr Chew Hock Yong (second from President’s right), Permanent Secretary, Ministry of Social and Family Development; Mr Loh Chin Hua (first from President’s left), CEO of Keppel Corporation; and Mr Sim Gim Guan (second from President’s left), CEO of National Council of Social Service

Keppelite I Issue 3 / 2018 Sustaining Growth 3

Editor’s Note Editorial Team

Dear Readers, Editorial Advisor Ho Tong Yen Keppel Corporation celebrates its 50th anniversary in 2018. One of the key events held to commemorate the company’s Golden Jubilee was the Keppel 50 Charity Run. President Editor of Singapore Mdm Halimah Yacob was the guest-of-honour at the event on 7 July 2018, Sue-Ann Huang which drew participation from over 200 Keppelites. Committed to make a positive impact Copy Editors on the community, Keppel marked the occasion with a $1 million donation to President’s Brian Lee, Han Sufen Challenge 2018. We share highlights of the day in this issue of Keppelite (see pages 26 to 30). Editorial Team Ana Luisa Cruz, Ang Lai Lee, From humble beginnings as a ship repair yard, the Keppel Group has grown to be a multi- Ariel Tee, Casey Chiang, business company providing robust solutions for sustainable urbanisation. Our businesses Donald Sng, Eileen Tan, Elizabeth Widjaja, Fiona Aw, meet the growing need for energy, infrastructure, clean environments, high quality homes Frances Teh, Grace Chia, and offices, and connectivity. Guo Xiaorong, Hoo Yao Lin, Ivana Chua, Kevin Ho, As industries increasingly adopt cleaner fuel alternatives, Keppel Offshore & Marine (Keppel Lee Wan Jun, Liang Hui Hui, O&M) is harnessing its expertise in newbuilds and Liquefied Natural Gas (LNG) to provide Mary Ann Bey, Ong Wen Qi, Razali Maulod, Ricky Ling, Roy Tan, customised solutions for clients and capture new market opportunities. Keppel O&M has Serena Toh, Sharon Woo, won a contract from FueLNG to build Southeast Asia’s first LNG bunkering vessel valued Song Jia Jia, Tang Yibing, at approximately $50 million (see backpage). Tay Jia Wei, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo On track to realising its vision of becoming a model of sustainable urbanisation in China is the Sino-Singapore Tianjin Eco–City (Eco-City) which celebrates its 10th anniversary this Please mail your correspondence to: year. Mr Teo Chee Hean, Deputy Prime Minister and Coordinating Minister for National Group Corporate Communications Security, visited the Eco-City on 1 July 2018 as part of his nine-day visit to China. We share – Keppelite Editor snapshots of the visit and anniversary festivities (see pages 24, 25 and 46). Keppel Corporation Limited 1 HarbourFront Ave, #18-01 Reflecting Keppel’s commitment to sustainability and innovation, Keppel Corporation is Keppel Bay Tower Singapore 098632 a sponsor of the Lee Kuan Yew World City Prize, a highlight of this year’s World Cities Summit in July 2018. The prize, which was won by South Korean capital Seoul this year, Email: [email protected] recognises the outstanding achievements of cities and leaders in tackling urban challenges Website: www.kepcorp.com/ekeppelite and creating liveable and vibrant communities (see pages 32 and 33). Keppelite is a publication of Keppel Corporation, and is published Lastly, we share highlights from the annual sustainability reports of Keppel Corporation quarterly by the Group Corporate and Keppel Land. The reports articulate Keppel’s progress in line with the Sustainable Communications Division. All Development Goals, a globally shared ambition to improve life for future generations rights reserved. Permission from (see pages 22 and 23). the publisher is required for reproduction by any means in whole or in part. In the series ‘Getting to Know You’, where we speak to senior executives in the Keppel Group to learn more about them as individuals, we caught up with Mr Chris Ong, CEO of Keppel O&M, to gain insights into his outlook on business and his views on work, life Printed in Singapore by and the world (see pages 50 and 51). Image Printers Pte Ltd.

We hope you enjoy your read of Keppelite.

Keppelite Editor

Keppelite I Issue 3 / 2018 4 Sustaining Growth Growth

Forging ahead Bolstered by its multi-business strategy and geographical diversification, Keppel Corporation continued to deliver robust performance in 1H 2018. Keppelite reproduces the speech by Mr Loh Chin Hua, CEO of Keppel Corporation, at the Company’s 2Q & 1H 2018 briefing to media and analysts.

The 3rd of August will mark achieved a net profit of anniversary, we will be giving awarded over the past Keppel Corporation’s 50th $583 million, an increase of out a special dividend of year. In June this year, the anniversary. Over the past 38% compared to the same 5.0 cents per share. The Energy Maritime Associates five decades, starting from period in 2017. Our Group interim dividend and special estimated that there are 235 a small shipyard, the Group continued to deliver strong dividend will be paid out to projects in various stages of has expanded, diversified results in 1H 2018, despite shareholders on 7 August study potentially requiring and transformed itself, as continuing challenges in the 2018. a floating production or we seized opportunities and Offshore & Marine (O&M) storage system. Of these, overcame myriad challenges business. We remain focused on 62 are in the bidding or final in our growth journey. improving the overall quality design stage. Economic Value Added for of our earnings. Recurring Today, Keppel is an eco- the period was $275 million. income contributed In short, the recovery of the system of companies working On an annualised basis, our $130 million or 22% of our O&M business is expected closely together to provide Return on Equity was 9.9%. net profit in 1H 2018. to continue, but at an solutions for sustainable incremental pace. urbanisation. Whether it We had free cash inflow of OFFSHORE & MARINE is the search for energy $886 million in 1H 2018, There is growing optimism Against a challenging through our rigs and vessels, compared to the inflow of in the O&M industry, with backdrop, our O&M Division the provision of solutions for $204 million in 1H 2017. Brent crude prices hovering made a net loss of $40 million, gas or renewables, reliable above US$70 per barrel. compared to a net profit infrastructure such as power, Our net gearing was 0.40x However, the rig market of $11 million in 1H 2017. waste-to-energy or water at end-June 2018 vs 0.46x continues to be weighed This was mainly due to treatment plants, high at end-December 2017. down by a supply overhang. lower work volume, lower quality built environments, We paid out $254 million Rig utilisation has improved, contribution from associated or physical and digital cash to shareholders in May but day rates have remained companies and higher taxes connectivity, Keppel is well 2018 as the final dividend stagnant. in overseas operations. placed to meet the market’s for FY 2017. needs. Nevertheless, in regions Keppel Offshore & Taking into account the such as the UK sector of Marine (Keppel O&M) has Our multi-business Group’s better performance, the North Sea, the Middle significantly reduced its strategy and geographical including the improvement East and Southeast Asia, overheads in the last few diversification have enabled in our cash flow and net we are seeing more rig years, due to the extensive the Company to remain gearing, the Board has tender activities. In Brazil rightsizing it has undertaken. resilient, despite cyclical approved an interim dividend and Mexico, international oil This has helped the company headwinds in some of our of 10.0 cents per share for companies are also expected achieve an operating profit businesses. 1H 2018, higher than the 8.0 to increase investments in of $14 million in 1H 2018 cents per share for 1H 2017. the oil and gas sector. in spite of the lower volume FINANCIAL In addition, to thank of work. PERFORMANCE shareholders for their trust There has also been an For the first six months and support on the occasion increase in the number of As at end-June 2018, we of 2018 (1H 2018), we of Keppel Corporation’s 50th floating production projects have secured over $1.2 billion

Keppelite I Issue 3 / 2018 Sustaining Growth 5

of new orders, slightly vessel for FueLNG, our joint delivered a Floating underpinned by en bloc more than the new orders venture with Shell. Production Storage and sales as well as higher secured for the whole of Offloading (FPSO), a dual- contributions from home 2017. In 2Q 2018 alone, we Major deliveries fuel LNG tug and two sales in Singapore and China. clinched $680 million worth Keppel O&M’s net orderbook jackups to Borr. Hilli Episeyo, of contracts. was $4.6 billion as at end- the world’s first converted In line with our capital June 2018, excluding our floating liquefaction vessel recycling strategy, Keppel The new contracts secured projects for Sete Brasil, which Keppel developed Land announced the sale of were for two new jackups compared to $3.9 billion as in partnership with Golar, two residential developments for Borr Drilling, as part of a at 31 December 2017. This is has commenced full en bloc in Shenyang and a five-rig deal worth a total of the first time since 2014 that commercial operation stake in Quoc Loc Phat Joint US$745 million, two dual- Keppel O&M’s net orderbook offshore Cameroon. This Stock Company in Vietnam fuel dredgers for Van Oord, has risen for two consecutive has resulted in increasing for a total consideration a dual-fuel bunker tanker for quarters. market confidence in the of $350 million. We also Sinanju as well as a Liquefied conversion approach which announced the divestment Natural Gas (LNG) bunkering In 1H 2018, Keppel O&M adds value with its faster of a commercial project in time to first LNG production Beijing for a consideration and competitive pricing. of $396 million. The option is expected to be exercised in Since 2015, we have won 3Q 2018. about $1.8 billion of orders for our gas solutions, In 1H 2018, our Property making up about 38% of Division sold about 1,420 all new orders. With our homes, with a total sales ability to design, develop value of about $770 million. and integrate solutions These included 800 homes in across the gas value chain, China and 130 in Singapore. Keppel aims to be the gas The property market in industry’s preferred partner. Vietnam remains promising, The growing adoption of and we expect more homes LNG as a marine fuel, driving to be sold in Ho Chi Minh demand for newbuilds, City as new projects are conversions and upgrades, launched later this year. also augurs well for the We have also received business. positive response in other markets such as in Indonesia The Division is also actively and India, where we sold 150 seeking opportunities in and 225 homes respectively. production assets, specialised vessels, gas solutions, Over and above these floating infrastructure and homes sales, we also sold offshore renewables. three residential projects in Zhongshan and Shenyang PROPERTY in 1H 2018 which are Our Property Division made equivalent to another 11,100 a net profit of $603 million homes sold en bloc. for 1H 2018, more than three times the $192 million In 2Q 2018, Keppel FELS delivered its second jackup rig, built to Keppel’s renowned KFELS achieved in 1H 2017, Continues on page 6... Super B Class design, to Borr Drilling

Keppelite I Issue 3 / 2018 6 Sustaining Growth

...continued from page 5.

We expect to recognise profits Positioned for growth key cities in China, namely $66 million, up 16% year- from the sale of some 6,900 For over 20 years, the Group Beijing, Shanghai, Tianjin, on-year, mainly due to the units of overseas homes has expanded regionally and Wuxi and Chengdu. dilution gain following worth about $2.4 billion, invested in key Asian cities. Keppel DC REIT’s private to be recognised upon In some cities, we enjoy a Riding on our experience placement exercise as well completion, from 3Q 2018 first mover advantage and and track record in these as higher contribution from through 2021. have built up a sizeable cities, we intend to expand Environmental Infrastructure landbank. We are in an our presence in the Jing- and Infrastructure Services. In our residential pipeline, we enviable position where we Jin-Ji (Beijing-Tianjin-Hebei) have about 50,000 homes, have many options across region, with Beijing and The new projects under of which over 16,000 units a number of markets, Tianjin as focus cities, development are making are ready for launch from which help us mitigate the the Yangtze River Delta steady progress. The Keppel now till end-2020. impact of cooling measures, region with Shanghai and Marina East Desalination whether in China or Wuxi as focus cities, and Plant (KMEDP), for which In our commercial portfolio, Singapore. in the growing Chengdu Keppel Infrastructure has we have about 1.5 million metropolis. We are a 25-year Water Purchase square metres of gross floor China and Vietnam are key also actively exploring Agreement with the PUB, is area, about two thirds of markets for the company, opportunities in the Greater close to 50% completion. which is under development. where rapid urbanisation Bay Area, with Guangzhou As the commercial projects and a fast growing middle and Shenzhen as focus cities. Meanwhile, the Hong are progressively completed, class are driving demand Kong Integrated Waste they will provide steady for high quality homes. In Over in Ho Chi Minh City, Management Facility recurring income for the the past few years, we have Vietnam, we will also (HKIWMF) is in the design Group. focused our attention on five explore opportunities along and engineering phase, and the eastern and southern is expected to contribute corridors, which are to our bottom-line starting supported by infrastructure from next year. investments. Stable and recurring income We will continue our efforts from Infrastructure Services to achieve faster asset turns. contributed revenue of about Keppel Land is evolving to $70 million in 1H 2018. This become a multi-faceted is expected to grow further developer that is not just with the commencement focused on acquiring land of long-term operations & and building homes, but maintenance contracts for also on developing a sterling the KMEDP in 2020 and portfolio of commercial HKIWMF in 2024. properties. We may also acquire completed assets On our data centre business, which are cash-flow several deals are in the generating and add value pipeline and we will share through asset enhancement. details when they are finalised. INFRASTRUCTURE The Infrastructure Division INVESTMENTS continues to grow as a Our Investments Division steady pillar of earnings. made a net loss of $46 million With over 1,500 launch-ready units in Vietnam for the rest of 2018, Keppel Land is well- positioned to tap demand of the growing local market It achieved a net profit of for 1H 2018, compared to

Keppelite I Issue 3 / 2018 Sustaining Growth 7

Solutions also signed an SHAPING THE FUTURE: MOU with Singapore 50 & BEYOND Technologies Engineering To conclude, the Keppel (ST Engineering) to Group is working hard to leverage each other’s seize opportunities, not expertise and resources in just through growing each the design and application vertical, but also through of smart city masterplans close collaboration between and technologies. This our business units, as we includes the customisation provide solutions to meet and application of ST the needs of sustainable Engineering’s solutions in urbanisation. Reflecting our Saigon Sports City in Ho Chi commitment to not only do Minh City. Beginning with well, but also to do good, Vietnam, where Keppel has Keppel Corporation became a strong presence and track a signatory of the United record, the partnership may Nations Global Compact in also be extended to other May. We have also made a With the acquisition of Keppel DC Singapore 5 by Keppel DC REIT, the Group has 19 data markets. public pledge on the actions centres across Asia Pacific and Europe that the Group will take to This year, we are also address climate change. a net profit of $163 million of aggregate lettable area. celebrating the 10th We are determined to have in 1H 2017, as a result of With this addition, Keppel anniversary of the Eco- a positive impact on the the share of losses from DC REIT’s assets under City. During his visit to community, wherever we associated companies management will increase to the Eco-City earlier this operate. This is how Keppel is and fair value losses on approximately $1.94 billion, month, Singapore’s Deputy forging ahead, and shaping investments. Unlike in with 15 data centres across Prime Minister Teo Chee the future. keppelite 1H 2017, there have also Asia Pacific and Europe. Hean witnessed the launch been no land sales in the of the city centre, which Sino-Singapore Tianjin Eco- The first half of 2018 also marks a new phase in City (Eco-City) so far this saw us actively pursue the development of the year. opportunities to advance Eco-City. With growing our integrated master economic vibrancy and a Keppel Capital continues to development business under wider range of amenities, provide steady contributions Keppel Urban Solutions. In we expect the Eco-City to the Group, and to seek April, Keppel Corporation to become increasingly opportunities to expand signed a Memorandum attractive both to its asset classes and of Understanding (MOU) companies and residents, investor base, focusing on with Filinvest Development and to continue being a areas which harness the Corporation to explore long-term contributor to capabilities of the Keppel cooperation opportunities the Keppel Group. Our joint Group. in the latter’s smart venture, Sino-Singapore and sustainable urban Tianjin Eco-City Investment Meanwhile, Keppel DC REIT development projects in the and Development Co., Ltd., has acquired Keppel DC Philippines. expects to continue land Singapore 5 which will boost sales in 2H 2018, to meet its footprint in Singapore To expand its suite of the strong demand for to nearly 300,000 sf solutions, Keppel Urban homes in the Eco-City.

Keppelite I Issue 3 / 2018 8 Sustaining Growth

Resilient performance Mr Chan Hon Chew, CFO of Keppel Corporation, presented the Company’s financial performance at the 2Q & 1H 2018 results briefing to media and analysts. Keppelite reproduces his speech.

In the second quarter of FINANCIAL PERFORMANCE 2018 (2Q 2018), the Group recorded a net profit of $m 2Q 2018 2Q 2017 % Change 1H 2018 1H 2017 % Change $246 million, which was Revenue 1,523 1,554 (2) 2,993 2,802 7 44% higher than the second quarter of 2017 (2Q 2017). Operating Profit 257 149 72 725 333 118 Profit before Tax 281 215 31 711 504 41 Correspondingly, Earnings per Share (EPS) increased to Net Profit 246 171 44 583 423 38 13.6 cents, and Economic EPS (cents) 13.6 9.4 45 32.2 23.3 38 Value Added (EVA) was * 2Q & 1H 2017 financial figures have been restated following the adoption of the new financial reporting framework, Singapore Financial a positive $89 million Reporting Standards (International). compared to a negative $34 million in the same lower share of profits from Keppel Bay and Highline higher share of associated quarter last year. associates. Residences, which has been companies’ profits and lower sold out, as well as the net interest expense. Last 2Q 2018 FINANCIAL After tax and non-controlling absence of revenue from year, the O&M Division’s HIGHLIGHTS interests, net profit was 44% The Glades as compared to pre-tax profit also benefited The Group’s revenue higher at $246 million, the same quarter last year. from a $12.6 million gain for 2Q 2018 was 2% or translating to an EPS of on divestment of $31 million lower than 13.6 cents. Infrastructure Division Keppel Verolme. 2Q 2017. Lower revenues achieved a 24% growth from Property and 2Q 2018 SEGMENTAL in revenue as a result of The Property Division Investments divisions were REVIEW increased sales in the power registered a $122 million partially offset by higher In 2Q 2018, the Group and gas businesses and increase in pre-tax profit revenues from Offshore earned total revenues of progressive recognition of due mainly to en bloc sales & Marine (O&M) and $1.5 billion, 2% lower than revenue from the Keppel of development projects, Infrastructure divisions. 2Q 2017. Marina East Desalination namely The Seasons in Plant (KMEDP) project. Shenyang, Hunan project Despite lower revenues, the The O&M Division reported in Shenyang in China, Group’s operating profit a 35% increase in its top- The Group recorded and Quoc Loc Phat Joint for the quarter increased line as a result of revenue $281 million of pre-tax profit Stock Company which by 72% or $108 million, to recognition in relation to for 2Q 2018, 31% higher holds land in Thu Thiem $257 million, boosted by en the jackup rigs sold to than 2Q 2017. New Urban Area in Ho Chi bloc sales of development Borr Drilling, partially Minh City, Vietnam, and projects in China and offset by lower volume of The O&M Division’s pre- fair value gain on Nassim Vietnam. work. tax loss for 2Q 2018 was Woods in Singapore, which $11 million as compared has been designated for Profit before tax at Revenue from the Property to $15 million profit in redevelopment for sale. $281 million, however, Division saw a 55% decline 2Q 2017. This was due These are partially offset increased by a lower margin due to lower revenues from mainly to lower operating by lower contribution from of 31%, due mainly to China projects, Corals at profits, partially offset by property trading projects.

Keppelite I Issue 3 / 2018 Sustaining Growth 9

The Infrastructure Division reported a 26% increase in pre-tax profit due mainly Net Profit & EPS to dilution gain following the change of interest Net profit (S$m) EPS (Cents) in Keppel DC REIT, and higher contributions from 1,885 103.8 Environmental Infrastructure 1,846 102.3 and Infrastructure Services. 1,525 84.0 726 This was partly offset by 685 38.0 39.9 405 22.3 lower contribution from

Energy Infrastructure and 414 22.9 457 363 784 815 25.3 20.0 43.2 44.8 share of loss at Keppel 128 6.9 143 583 7.9 32.2 Infrastructure Trust. 347 406 397 225 264 19.2 22.3 21.9 12.4 14.6 246 13.6 205 171 11.3 9.4 357 339 360 337 19.8 18.7 19.8 18.6 The Investments Division 211 252 11.6 13.9 recorded a $39 million * * decrease in pre-tax profit due to share of losses from 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q associated companies in * Excludes one-off financial penalty from global resolution and related costs 2Q 2018 as compared to their share of profit in 2Q 2017. period was an inflow of Higher revenues from O&M the divestment of stakes in After tax and non-controlling $886 million, compared to and Infrastructure divisions property trading projects in interests, the Group’s net an inflow of $204 million were partially offset by lower China. profit increased by 44% in 1H 2017, due mainly revenues from the Property or $75 million, with the to proceeds from the en and Investments divisions. After tax and non-controlling Property Division being bloc sales of development interests, net profit was 38% the top contributor to the properties. Operating profit at higher at $583 million. Group’s earnings, followed $725 million was 118% or Similarly, EPS increased by by the Infrastructure Division. Consequently, net gearing $392 million higher than the 38% to 32.2 cents. improved from 0.46x at the corresponding period last 1H 2018 FINANCIAL end of 2017 to 0.40x at the year. Higher profits recorded 1H 2018 SEGMENTAL HIGHLIGHTS end of June 2018. in Property and Infrastructure REVIEW Compared to the first six divisions were partially offset For 1H 2018, the Group months of 2017 (1H 2017), We are pleased to announce by lower profits from O&M earned total revenues of net profit for the first an interim cash dividend and Investments divisions. close to $3 billion, 7% higher six months of 2018 of 10 cents per share for than last year. (1H 2018) was 38% higher 1H 2018, as well as a special Profit before tax at at $583 million. cash dividend of 5 cents $711 million, however, O&M Division recorded an per share to commemorate increased by a lower margin increase in revenue due EPS increased by the same Keppel’s 50th anniversary of 41% due mainly to mainly to revenue recognition extent to 32.2 cents. since its incorporation. lower share of profits from in relation to the jackup rigs Annualised Return on associates. In 1H 2017, sold to Borr Drilling. This Equity (ROE) also increased The Group earned a total the Group benefited from was partially offset by lower to 9.9%, while EVA was revenue of almost $3 billion the Sino-Singapore Tianjin volume of work. higher at $275 million. in 1H 2018, an increase Eco-City’s (Eco-City) sale of of 7% or $191 million three land parcels, as well Free cash flow for the compared to 1H 2017. as the share of gains from Continues on page 10...

Keppelite I Issue 3 / 2018 10 Sustaining Growth

...continued from page 9.

32.2 cents. In 1H 2018, ROE & Dividend annualised ROE increased (Excluding one-off global resolution & related costs) to 9.9%. Our interim and special Additional Additional special cash distributions to our dividend in specie cash dividend shareholders for this period 30.0% 100 ~9.5cts/share 5.0 cts/share will be 10 cents per share 90 25.0% 80 and 5 cents per share 19.5% 70 respectively. 20.0% 18.8% 60 15.0% 14.2% 50 FREE CASH FLOW Cash flow from operations 48 9.9% 40 10.0% 40 30 was $325 million in 1H 2018, 34 6.9% 6.9% 20 up from $245 million in 5.0% 20 22 10 1H 2017. 12 12 0.0% 10 8 8 10 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 1H 2018 After accounting for working ROE Interim Dividend Full-Year Dividend capital changes, interest and tax, net cash inflow from operating activities was $357 million, as compared Revenue from the Property Division’s pre-tax profit last The Investments Division to an inflow of $127 million Division dropped by 2%, due year also benefited from a registered pre-tax losses of last year. This was due mainly to lower revenue from $12.6 million gain on $35 million as compared mainly to lower working the hotels and resorts, as divestment of Keppel to a pre-tax profit of capital requirements in the well as the property services Verolme. The Division’s $185 million last year as O&M Division. segments. operating margin for a result of the absence of 1H 2018 was 1.5%, write-back of provision for Net cash generated from Infrastructure revenues compared to 3.5% in impairment of investment investing activities amounted increased by 23%, led 1H 2017. and the share of losses of to $529 million, comprising by increased sales in the associated companies in divestment proceeds and power and gas businesses In the Property Division, 1H 2018, as compared to the dividend income from and progressive revenue pre-tax profits increased by share of profits in 1H 2017. associated companies recognition from the KMEDP 198% due mainly to en bloc This was mainly due to the totalling $833 million. This project. sales of development projects absence of sale of three land was partly offset by net in China and Vietnam, fair parcels in the Eco-City. repayment of the advances The Group recorded a pre- value gain on Nassim Woods, from associated companies tax profit of $711 million for which has been designated After tax and non-controlling of $239 million. 1H 2018, 41% higher than for redevelopment for sale, interests, the Group’s 1H 2017. as well as higher contribution earnings increased by 38% As a result, there was from property trading to $583 million, with the an overall cash inflow of This was despite O&M projects. The increase was Property Division being $886 million for 1H 2018, Division registering pre- partially offset by lower share the top contributor to the as compared to an inflow of

tax losses of $26 million as of profits from associates. Group’s earnings, followed $204 million last year. keppelite compared to pre-tax profits by the Infrastructure Division. of $13 million last year, arising Pre-tax profit from from lower operating profits Infrastructure Division The Group’s net profit of and lower contribution from was relatively stable at $583 million for 1H 2018 associated companies. O&M $74 million. translated to an EPS of

Keppelite I Issue 3 / 2018 Sustaining Growth 11

In conversation Keppelite shares highlights of management’s responses to key questions from the media and investment community at the Company’s 2Q & 1H 2018 results briefing on 19 July 2018.

Q: Are you seeing more the notice to proceed has changes to your on whether we will change enquiries for your been extended to end-2018, Singapore residential those plans but we will floating liquefied natural for Golar and Ophir to look launch pipeline and continue to monitor the gas (FLNG) conversion for an alternative investor. In redevelopment plans? market closely. solution after the the meantime, the ship is in LCH: The property cooling delivery of the first unit? the yard and we are doing measures announced in July Q: Can you comment on Can you give an update some preparatory works. As 2018 are still playing out the weaker home sales on the status of the for Gimi, we are working and we expect an impact in China? second and third units? closely with Golar and BP, on market sentiments. We LCH: The cooling measures CO: Hilli Episeyo having and we expect to receive the have a few properties in our have had an impact but they achieved first gas has notice to proceed by the end landbank such as Nassim have affected the markets increased the confidence of the year. Woods and Keppel Towers. differently. The supply and interest in the market As these are redevelopment demand fundamentals are for the conversion solution. Q: Given the recently projects, we have some still quite positive in most of That has literally taken out introduced property optionality in terms of when the markets where Keppel the technical risk of the cooling measures, we choose to launch them. solution itself. For Gandria, have you made any It is too soon to comment Continues on page 12...

Keppel’s senior management addressed questions from media and analysts at the Company’s 2Q & 1H 2018 results briefing and webcast

Keppelite I Issue 3 / 2018 12 Sustaining Growth

...continued from page 11.

Land China is active in and has projects. Most of these markets would have a supply that is usually about less than two years of demand.

In the course of the last two and a half decades, we have built up a lot of capabilities in different markets through our regional drive. This is an advantage that Keppel Land has. As markets become subject to potential policy risks and conditions change, some windows will open while some will Upon completion in 2020, Keppel Marina East Desalination Plant will add to the Group’s recurring income base close. Keppel, through our experienced local teams, That said, even when we sell and Construction (EPC) $12 million from the sale of in countries like China, units individually, the reality profits from the Keppel Keppel GE last year, so the Vietnam, Indonesia and is that earnings will still be Marina East Desalination variance (net profit) is not Singapore, to name just lumpy for overseas projects Plant (KMEDP). We also as big, but at the operating a few, has optionality in that are accounted for by expect to start recognising level, it’s quite a significant terms of where to invest, the completion method. EPC profits from the Hong improvement. and where to launch our At the end, assuming that Kong Integrated Waste projects. we can sell out during Management Facility next Q: The Chinese media construction, we can only year. When these projects reported that there were Q: Excluding the one- recognise the revenue and are completed, they go into no bids received for off gains from en bloc profit when the project the long-term operations the land put up for sale sales, Property profit is completed. So from a and maintenance (O&M) in the Sino-Singapore for 2Q 2018 would have financial point of view, there phase, and the O&M fees Tianjin Eco-City (Eco- declined year-on-year. is very little difference. The will keep on layering on top City) earlier this year. How should we think only difference is that we of one another. Are there plans to lower about Property in the can’t just rely on en bloc the bid price in order to future? sales all the time, we will OTG: For KMEDP, we are secure sales this year? LCH: We look at the entire still have to continue to look about 50% complete, LCH: The Eco-City is now picture so that would include at property launches and at and as for the Hong Kong more mature, connectivity the en bloc sales which are selling units the traditional project, we will recognise has improved, and with more opportunistic. We way. the contributions starting more amenities, it offers can choose to sell the units from next year. From the quite a nice environment individually, or we could, Q: What do you see as operations of Environmental for residents. The Eco-City where the opportunity a sustainable growth Infrastructure and is probably one of those arises, sell the project en level for Environmental Infrastructure Services, the markets that is considered bloc. To us, that is also sales. Infrastructure? operating income for the quite healthy. There will We do not see that as a LCH: We are seeing very first half was very strong. be good opportunities one-time gain. Of course, en steady contributions from We have contributed about for us to continue to sell bloc sales are a bit lumpier Keppel Infrastructure as an additional $15 million land in the Eco-City, and compared to unit by unit we start to recognise compared to last year. We the Sino-Singapore Tianjin sales. Engineering, Procurement had a one-time gain of Eco-City Investment and

Keppelite I Issue 3 / 2018 Sustaining Growth 13

Development Co., Ltd. is adding new geographies, 14.6%. That is actually on the infrastructure side. expecting to launch some new partnerships and quite a good return and we With urbanisation, there land for sale in the second potentially new asset classes have also set a target of a are a lot of requirements for half of the year. such as in the alternative through-cycle ROE of about different urban solutions. assets space. We will 12%. This would be on There are also opportunities There was a site put up announce some of these as fairly conservative gearing for Keppel Capital, but these for bidding in 1H 2018. and when there are further levels. So it is important that would be a bit less capital- However, there was the details. we constantly look out for intensive because we tend expectation that prices opportunities to turn our to work with third party would go higher than the Q: Recurring income was assets faster. But some of our investors. keppelite last transacted price in down to $130 million assets in our landbank were 2017, which was already for 1H 2018, from $150 acquired quite a number of LCH – Mr Loh Chin Hua, quite high. Hence, that million for 1H 2017. years ago. So where there CEO, Keppel Corporation What was the reason are opportunities for us piece of land was put up CHC – Mr Chan Hon Chew, and should we be to recycle, especially if the at a fairly high valuation. CFO, Keppel Corporation As a result, that particular concerned about that? markets are non-core to site did not attract any CHC: The fall in the recurring us, like what we have seen OTG – Dr Ong Tiong Guan, bid. This does not mean income was mainly due to in Shenyang, as well as in CEO, Keppel Infrastructure that there is no interest. the drop in our share of Zhongshan, we will do so. CO – Mr Chris Ong, The Eco-City is maturing profit in Floatel. In terms of CEO, Keppel Offshore & quite nicely and the supply the underlying business, the Q: Now that you have Marine demand dynamics are quite number of vessels on charter a stronger balance CT – Ms Christina Tan, positive. There is a shortage this year is three compared sheet, where are we CEO, Keppel Capital of homes and there is also to four last year. As you looking at in terms of strong demand, so I am know, the offshore & marine capital allocation? Is quite confident we will see industry has been facing it more on Property a land sale in 2H 2018. quite a bit of headwinds, or other segments? If which led to a fall in the it is Property, which Q: Will you be able number of vessels on charter segments are we to comment on the this year. looking at? current internal rate of LCH: We do not generally returns (IRRs) for the Q: Where are the do top-down allocation funds under Alpha? potential asset recycling as a Group as that can Where do you see opportunities within be dangerous. Of course, further opportunities the property portfolio we have a general sense to grow Assets Under where management of where we want to see Management (AUM)? feels have achieved fair our balance sheet being CT: The Alpha Funds have value? deployed. We tend to look done well. We do not LCH: As part of our goal to at things more from bottom disclose the IRRs as our make Keppel Land a multi- up to see where the best investors are private funds. faceted property player with deals are for the Group Some of you might have a focus on achieving the that can provide the best read about the potential highest returns, we have to risk-adjusted returns. We sales and divestments in the look closely at the property continue to see opportunities papers, I think generally we book to get the best returns. on the property side. We have performed well for the Over the 10 years to end- can replenish some of our investors. On where we see 2017, the average return landbank, where and when opportunities to grow AUM; on equity (ROE) for Keppel it makes sense. We can we are always looking at Land per annum was about also look at opportunities

Keppelite I Issue 3 / 2018 14 Sustaining Growth

Pursuing expansion

For the second quarter basis, net profit grew 60% higher operating costs to efforts to transform the ended 30 June 2018, year-on-year to $35.4 million support new developments Logistics business and grow Keppel Telecommunications for 1H 2018. The increase in the data centre and the Data Centre business & Transportation (Keppel was due mainly to dilution logistics businesses. are progressing on track, as T&T) reported a net profit of gain following Keppel DC we position Keppel T&T to $26.0 million, a 138% rise REIT’s private placement Mr Thomas Pang, CEO of seize growth opportunities year-on-year. On a half-year exercise, partly offset by Keppel T&T, said, “Our from the digitalisation wave for long term, sustainable growth.”

During the quarter, the Data Centre Division achieved close to 60% committed occupancy at Keppel DC Singapore 4 while the Logistics Division marked steady progress with UrbanFox, having secured more than 110 brands for its online marketplace.

Keppel T&T achieved Earnings per Share of 4.6 cents Keppel T&T’s Logistics Division has further extended its service offerings beyond B2B to capture the B2C segment through a full suite of omni- for 2Q 2018 and 6.3 cents channel logistics and channel management solutions for 1H 2018. keppelite Stable distributions

Keppel REIT has delivered price per unit of $1.10 as at have been fixed. As at the at 99.3%. The weighted stable distributable income 30 June 2018. end of 2Q 2018, aggregate average lease expiry for the (DI) of $48.3 million for leverage remained stable portfolio was 5.2 years. 2Q 2018, bringing DI for The REIT has no refinancing at 38.6%. 1H 2018 to $96.6 million, requirement until 2019 and Looking ahead, the Manager higher than the DI of the Manager is proactively As part of its proactive capital will continue to drive $95.5 million for 1H 2017. managing the refinancing management strategy, the operational excellence by The Manager declared a of loans that are due in Manager also intends to maintaining a tenant-centric Distribution Per Unit (DPU) 2019. The all-in interest rate initiate unit buy-backs leasing approach and a of 1.42 cents for 2Q 2018, was 2.77% per annum with pursuant to the mandate prudent capital management bringing the total DPU for interest coverage ratio at obtained at the annual strategy to deliver stable

1H 2018 to 2.84 cents. This 4.3 times. To mitigate general meeting in April returns to unitholders. keppelite translated to an annualised exposure to interest rate 2018. As at end June 2018, distribution yield of 5.2% volatility, the rates of 77% the portfolio committed based on the market closing of the REIT’s total borrowings occupancy remained high

Keppelite I Issue 3 / 2018 Sustaining Growth 15

Sustainable returns

Keppel Infrastructure Trust (KIT) announced a Distribution Per Unit of 0.93 cents for the second quarter ended 30 June 2018.

Group revenue for 1H FY18 was $303.2 million, 3.5% lower than 1H FY17, mainly from lower fees earned at Basslink due to the service outage that occurred from 25 March to 5 June 2018 as a result of an incident caused by a third party contractor. The electricity interconnector returned to service on 5 June 2018. Keppel Merlimau Cogen also City Gas recognised higher revenue in the first half of FY 2018, compared to the same period last year contributed lower revenue in 1H FY18 due to a recent ended 30 June 2018 was higher contributions from primarily attributable to unplanned maintenance in $72.5 million, comparable City Gas. distributions to unitholders, 2Q FY18. This was partially to the same period last partially offset by marked- offset by higher revenue year. Profit attributable to Net Asset Value Per to-market movements from City Gas. unitholders of the Trust in Unit as at 30 June 2018 of derivative financial 1H FY18 was lower, mainly decreased to 28.8 cents instruments and profit KIT’s distributable cash due to lower revenue at from 29.9 cents as at recognised for the period. flows for the first half Basslink, partially offset by 31 December 2017, keppelite

Steady growth

Higher contribution from well as higher finance costs 2.77 cents per unit for the its DPU-accretive acquisition maincubes Data Centre and and Manager’s fees. period from 1 January to of Keppel DC REIT’s fourth assets in Singapore and 15 May 2018 as well as a asset in Singapore – Keppel Dublin boosted Keppel DC Distribution Per Unit (DPU) distribution of 0.85 cents DC Singapore 5 (formerly REIT’s distributable income of 3.62 cents was declared per unit for the period from Kingsland Data Centre). This for the first half ended for 1H 2018. This was 4.0% 16 May to 30 June 2018, brings Keppel DC REIT’s 30 June 2018 to $43.9 million higher year-on-year after post private placement of portfolio to 15 data centres from $41.9 million one year excluding the one-off capital 224.0 million new units. with combined assets ago. This was partially offset distribution recorded in under management of by lower rental income from 1Q 2017. The DPU comprises During the period, the $1.94 billion. keppelite Basis Bay Data Centre, as an advanced distribution of Manager also completed

Keppelite I Issue 3 / 2018 16 Sustaining Growth

Delivering value

Keppel-KBS US REIT has early lease termination at of assets. In 2Q 2018, average lease expiry was delivered net property Westmoor Center in Denver, the Manager saw positive 3.7 years. income of US$36.1 million Colorado. leasing momentum with for the financial period 32 new leases totalling Looking ahead, the Manager since listing on 9 November Distribution Per Unit for the to more than 222,000 sf is actively pursuing accretive 2017 to 30 June 2018, period from 9 November secured during the period, acquisitions in key growth exceeding its Initial Public 2017 to 30 June 2018 bringing committed portfolio markets where the REIT has Offering (IPO) forecast of was 3.82 US cents, 0.5% occupancy to 90.3% as at a presence in, as well as US$34.8 million by 3.8%. above the IPO forecast of 30 June 2018, compared with other US cities with similar This higher net property 3.80 US cents, translating to 89.8% as at 31 March 2018. growth characteristics, to income was supported by an annualised distribution All new leases have built-in capture value and further overall rental growth, lower yield of 6.77%. annual rental escalations of upsides. The Manager property expenses and a 2 to 4%, providing organic remains committed to deliver one-off compensation The Manager continues growth visibility for the sustainable distributions income recognised in to capitalise on the steady portfolio. As at 30 June and strong total returns to

1Q 2018 arising from an demand for its portfolio 2018, the portfolio weighted unitholders. keppelite Homes in the Gardens

The Garden Residences, homebuyers a choice of Keppel Land’s latest different views, including condominium project, unblocked views of the received positive response surrounding neighbourhood. during its launch in end- May 2018. Developed in The development’s facilities collaboration with Wing include a 75-metre swimming Tai Holdings, The Garden pool with a swim-up spa and Residences is located along an aqua gym, a tennis court, Serangoon North View and is a 24-hour gym, an outdoor nestled within lush gardens, fitness zone, al fresco dining with many units enjoying an facilities and a gourmet expansive view of the private kitchen. Residents can also landed estate of Serangoon grow and harvest herbs and Gardens. spices in the community The Garden Residences received positive response during its launch in end-May 2018 garden, or enjoy a stroll The project features five along the scenic boardwalk. 15-storey towers that will transport infrastructure station and bus interchange yield a total of 613 units, The well-established provides connectivity to all are also nearby. Within a one comprising 1- to 5-bedroom Serangoon Garden Estate parts of Singapore – major kilometre radius are notable units to cater to the different located nearby boasts a wide expressways like CTE and PIE educational institutions needs of homebuyers. All range of dining, shopping are a few minutes’ drive away such as Rosyth School and units are of North-South and lifestyle options. In from The Garden Residences, Lycée Francais de Singapour.

orientation, offering addition, established and the Serangoon MRT keppelite

Keppelite I Issue 3 / 2018 Sustaining Growth 17

Keppel sells five existing rigs to Borr Drilling

Keppel FELS entered into an original owners. Borr Drilling to further improve our cash opportune time for us to agreement with Borr Drilling will pay a first instalment flow, minimise the holding grow our fleet of highly Limited (Borr Drilling) on of US$288 million and the risks of the projects, and capable jackup rigs as the 16 May 2018 for the sale of remaining amounts are clear several of the deferred market is showing signs of five existing jackup rigs for a payable within five years orders.” recovery from the bottom of total value of approximately from the respective delivery the business cycle.” US$745 million. dates of each individual Mr Svend Anton Maier, rig, on a seller’s credit with CEO of Borr Drilling, In addition to the above These are existing jackup rigs interest at market rates. added, “Our partnership five rigs, Borr Drilling had which are currently being The rigs are scheduled to be with Keppel is crucial as it also previously taken over built by Keppel FELS to the delivered progressively from enables us to provide the the contracts for five KFELS KFELS B Class designs. Of the 4Q 2019 to 4Q 2020, with market with the latest in Super B Class jackup rigs that five rigs, two were originally one rig to be delivered in jackup rig technology, safety Keppel FELS was building built for Grupo R (being the 2019 and four rigs in 2020. and operability. This is an for Transocean. keppelite Cantarell V and Paraiso II rigs) and one for Falcon Energy Mr Chris Ong, CEO of Group. Keppel FELS has Keppel Offshore & Marine terminated the contracts with (Keppel O&M), said, “The Second of ten rigs to the respective owners. Two agreement with Borr Drilling Borr Drilling delivered other rigs were being built demonstrates that rig in anticipation of potential owners continue to look for On 13 June 2018, Keppel been achieved with an demand. reliable, high quality rigs, FELS delivered the state- excellent safety record such as the KFELS B Class, of-the-art jackup rig, while maintaining Keppel The total price of the five rigs to maximise efficiency and SKALD, to Borr Skald Inc, a FELS’ hallmark quality excludes the down payments productivity. This is a win- subsidiary of Borr Drilling, standards.” which had already been win agreement for all parties safely, on time and on made by the respective and enables Keppel O&M budget. It is the second Built to Keppel’s renowned jackup rig that Keppel has KFELS Super B Class design, delivered to Borr Drilling SKALD is capable of following the delivery of operating in water depths the SAGA earlier this year, of up to 400 feet and with another eight on can drill to 35,000 feet. order. Equipped with cantilever skid-off capabilities, with Mr Chris Ong, CEO of a maximum combined Keppel O&M, said, “We cantilever load of have leveraged the 3,700 kips, and high synergies of working capacity hook loads of on multiple rigs for two million pounds, the Borr Drilling to improve KFELS Super B Class has efficiency and ensure an tremendous horse power on time and on budget during drilling operations. With the latest agreement, Borr Drilling has ordered a total of 10 jackup rigs from Keppel delivery. This has also FELS, including the SKALD jackup (pictured) which was delivered in June 2018

Keppelite I Issue 3 / 2018 18 Sustaining Growth

Singapore’s first VLCC scrubber retrofit

Keppel Shipyard has (Conversions & Repairs), more sustainable measures meet the requirements of completed Singapore’s Keppel Offshore & Marine, to reduce the impact on the the International Maritime first scrubber unit retrofit said, “We are pleased to environment, Keppel Shipyard Organisation’s (IMO) new installation on a Very Large be selected by our long- stands ready with a suite 0.5% global sulphur cap on Crude Carrier (VLCC). standing customer for their of advanced, cost-effective fuel content effective from first scrubber retrofit job. As and quick solutions that can 1 January 2020. Mr Chor How Jat, MD the industry looks to adopt meet the requirements of our customers in reducing Keppel Shipyard expedited emissions. As a leading ship the scrubber retrofit on repair yard, we have a strong the VLCC, and achieved track record undertaking completion in less than a retrofits and conversions month – safely and within projects.” budget. In order to meet the tight deadline and minimise Known technically as exhaust downtime for the vessel, gas cleaning systems, Keppel Shipyard maximised scrubbers treat the vessel’s the preparatory work exhaust gas with chemical by fitting the completed reagents to remove sulphur scrubber and supporting oxide compounds (SOx). This systems in one prefabricated allows the vessel to discharge module before the vessel With the implementation of IMO’s new 0.5% global sulphur cap on fuel content effective a minimum amount of SOx arrived in the yard in early from 1 January 2020, ship owners are actively pursuing solutions, such as the installation of scrubbers, to reduce emissions into the environment and June this year. keppelite

Data centre portfolio expansion

Keppel DC REIT has neutral colocation data Management, said, “As The acquisition was funded strengthened its foothold centre that hosts leading a key data centre hub in by the net proceeds raised in Singapore with the internet enterprise and IT Asia, Singapore continues from the private placement acquisition of a 99% interest services clients. Completed to see strong demand from of 224 million new units in in Kingsland Data Centre in phases starting from multinational firms for Keppel DC REIT announced for $295.1 million. The 2015, the facility is located quality data centre space. in May 2018, and the acquisition, completed in in Jurong with approximately The addition of KDC SGP remaining net proceeds June 2018, saw the facility 98,769 sf of net lettable 5 will allow Keppel DC of its pro-rata preferential renamed to Keppel DC area. The facility’s IT power is REIT to establish a strategic offering that was launched

Singapore 5 (KDC SGP 5) fully committed. In addition, presence in the western part in October 2016. keppelite with Keppel Data Centres the facility’s committed of Singapore and diversify appointed as the master occupancy is 84.2%, with its offering to clients. KDC lessee and facility manager. the vacancy being offices. SGP 5 will boost the REIT’s footprint in Singapore KDC SGP 5 is a 5-storey, Mr Chua Hsien Yang, to nearly 300,000 sf of purpose-built, carrier- CEO of Keppel DC REIT aggregate lettable area.”

Keppelite I Issue 3 / 2018 Sustaining Growth 19

Environmental accolades

In line with its mission of BCA AWARDS 2018 providing solutions for sustainable urbanisation, BCA Quality Excellence Award, Quality Champion (GoldPLUS) – Keppel Land Keppel considers PLUS environmental factors BCA Universal Design Mark Gold Award – Corals at Keppel Bay during the planning and BCA Green Mark Platinum Award – Keppel DC Singapore 3 design of its property developments and data BCA Green Mark Gold Award – Park Avenue Heights centres. Bearing testament to the Group’s commitment to sustainability, business In addition, Bugis Junction 18 May 2018. This makes OUTSTANDING GREEN units received recognition Towers was also re-certified the David Malcolm Justice CONTRIBUTION AWARD at award ceremonies in as a BCA Green Mark Centre, which Keppel REIT Keppel Land China Singapore and overseas. Platinum building. owns 50% interest in, received the Outstanding the first 6 Star Green Star Green Contribution Award BCA AWARDS 6 STAR GREEN STAR project in Perth. at China’s 7th Finance On 20 May 2018, Keppel RATING Summit which took place garnered four awards at the The Green Building Council The Green Star on 20 July 2018 in Beijing, Building and Construction of Australia (GBCA) environmental rating system China. Inaugurated in Authority (BCA) Awards awarded the David Malcolm evaluates the environmental 2012, the Outstanding 2018 for its properties in Justice Centre the 6 Star design and performance of Green Contribution Award Singapore and overseas. This Green Star – Performance Australian buildings based recognises companies for includes the coveted Quality Certified Rating, which on criteria like energy and excellence in environmental PLUS Champion Gold Award, represents ‘World water efficiency, indoor stewardship. keppelite which was conferred on Leadership’ in sustainable environment quality and Keppel Land. building operations, on resource conservation.

Bearing testament to the Group’s commitment to sustainability, Keppel garnered four awards at the BCA Awards 2018 for its properties in Singapore and overseas

Keppelite I Issue 3 / 2018 20 Sustaining Growth

Bolstering leadership

and reporting functions of Keppel REIT and its subsidiaries.

A seasoned finance professional in the business of REITs and trusts, Ms Kang has been with the Keppel Group since 2005. She has held various senior positions, including as CFO of the Trustee-Manager of Keppel Infrastructure Trust

Ms Cindy Lim Mr Matthew Pollard Ms Kang Leng Hui and Financial Controller of Keppel Capital, which was her last held position. KEPPEL INFRASTRUCTURE As the MD of Keppel Urban infrastructure sectors. His TRUST Solutions since 1 January previously held positions Ms Serene Foong has Ms Cindy Lim has been 2018, Ms Lim leads the include Founder and MD succeeded Ms Kang as appointed as a non- unit to harness the Group’s of Capital Partners Group, the Financial Controller of independent, non-executive diverse capabilities to seize Head of Infrastructure Keppel Capital with effect

director on the Board of the opportunities in integrated (Asia) at Arcapita Bank and from 9 June 2018. keppelite Trustee-Manager of Keppel master development, Chairman of China-based Infrastructure Trust with tapping on the megatrend Honiton Energy Group. He effect from 18 July 2018. of rapid urbanisation. also held senior positions in the energy and utilities Ms Lim is concurrently Mr Matthew Pollard has teams of Citigroup, Dresdner Director of Group Corporate been appointed CEO of the Kleinwort, Enron Corp and Development at Keppel Trustee-Manager of Keppel Power Pacific Co. Corporation and MD of Infrastructure Trust with Keppel Urban Solutions. effect from 1 July 2018. As KEPPEL REIT As the Director of Group CEO of the Trustee-Manager, Ms Kang Leng Hui has Corporate Development, he will work closely with the been appointed as CFO of Ms Lim focuses on Board to set the strategic Keppel REIT Management operationalising the Group’s direction of the company. with effect from 9 June goals, working closely with 2018. In her new role, business units across the Prior to joining Keppel Capital Ms Kang will be responsible Group to identify, assess as MD, Infrastructure, in for overseeing Keppel REIT’s and pursue opportunities November 2017, Mr Pollard financial functions. This for synergy, and maximise held numerous leadership includes the accounting, value creation through positions in the energy, taxation, treasury, capital collaboration. power, renewables and management, compliance

Keppelite I Issue 3 / 2018 Sustaining Growth 21

Dual-fuel dredger contracts secured

Bearing testament to its dual-fuel Trailing Suction in 4Q 2020 and 2Q 2021 Mr Jaap de Jong, Staff ability to provide tailored Hopper Dredgers (TSHD). respectively. As part of the Director, Ship Management shipbuilding solutions for The contracts are valued at contracts, Van Oord has Department at Van Oord, customers across different approximately $212 million, an option to order a third said, “We are pleased industries, Keppel Singmarine excluding owner-furnished dredger to be exercised to work with Keppel announced on 16 May equipment. within one year. When on these modern and 2018 that it has secured completed, the two TSHDs environmentally-friendly contracts from Van Oord to The two dredgers are will each have a hopper dredgers which will build two high-specification expected to be completed capacity of 10,500 m3. strengthen our mid-class dredger fleet as well as Mr Abu Bakar, MD (Gas & our presence in the region. Specialised Vessels), Keppel The TSHDs will be the first Offshore & Marine, said, Liquefied Natural Gas (LNG) “We are pleased to be hopper dredgers in our fleet. awarded these contracts We look forward to this by our new partner Van partnership with Keppel as Oord. Keppel is currently we adopt LNG as a marine constructing five other fuel to reduce our global

dredgers, and we are able carbon footprint.” keppelite to build on our experience and capabilities to meet Van Oord’s needs.”

Built to the requirements of classification society Bureau Veritas, the two dredgers will be equipped with dual-fuel systems capable of running on LNG

En bloc sale of residential projects

In line with the Group’s Bay Property Development a gain of approximately developing a residential capital recycling strategy, (Shenyang) Co. Ltd. $31 million. township project, The Keppel Land has completed (KBPDS) to Shenyang Vanke Seasons, in Shenbei New the sale of two residential Property Development Separately, Keppel Land District, Shenyang City. developments en bloc in Co. Ltd. KBPDS owns a China’s wholly-owned Shenyang City, China. residential township project subsidiary Keppel China The total consideration in Hunnan New District, Township Development for the Shenbei project en Da Di Investment Pte Ltd Shenyang City. Pte Ltd, has sold its 100% bloc sale is approximately and Shanghai Merryfield interest in Keppel Township RMB 980 million Land Co. Limited, both The total consideration Development (Shenyang) ($205 million), representing subsidiaries of Keppel for the Hunnan project en Co. Ltd. (KTDS) to Shenyang a gain of approximately

Land China, sold their bloc sale is approximately SUNAC Xinxing Enterprise $43 million. keppelite respective interests of 80% RMB 503 million Management Limited. and 20% stake in Keppel ($105 million), representing KTDS owns and is currently

Keppelite I Issue 3 / 2018 22 Sustaining Growth

Driving sustainability As a multi-business company committed to delivering solutions for sustainable urbanisation, Keppel continues to sharpen its competitive edge and develop new platforms for growth, while placing sustainability at the heart of its strategy and operations. Keppel also supports initiatives that advance the international community’s sustainable development agenda.

Keppel Corporation and Compact, and is committed be transferred to Keppel World ESG Leaders Index Keppel Land published their to its 10 universal principles Corporation, allowing its and Euronext Vigeo Eiris annual sustainability reports on human rights, labour, corporate office to be fully Index – World 120. in May and June 2017 environment and anti- powered by clean energy respectively to communicate corruption. from the end of 2018. In 2017, Keppel Land their sustainability strategies established stretch targets and practices. The reports In its report, the Company The Company also for six of its adopted SDGs, provide overviews of the also shared how its eco- announced a bold new including goals to achieve companies’ management system of companies target to achieve a 28.8% reductions in energy, water approaches, priorities, contributes towards 10 of the reduction in carbon and waste, as well as to align targets and performance in Sustainable Development emissions intensity from its existing strategies with key areas. Goals (SDGs) by working 2010 levels by 2030. The these six SDGs. together to meet the world’s targets are in line with Mr Loh Chin Hua, CEO of needs for energy, urban Singapore’s Intended To date, Keppel Land has Keppel Corporation, said in living, clean environments, Nationally Determined garnered a total of 75 BCA his message to stakeholders, reliable infrastructure Contribution of reducing Green Mark Awards for “Sustainability is at the and connectivity, while greenhouse gas emissions its properties in Singapore heart of our business making a positive impact intensity by 36% from and overseas, including and we carefully consider on local communities, 2005 levels by 2030. 13 Platinum Awards. The environmental, social through the support of Keppel Corporation also total estimated reduction and governance issues in educational programmes, shared that it is on track in energy consumption from the determination of our skills development and to achieve its initial target all of its Green Mark-awarded strategy and policies. Our productive employment. of a 16% improvement in projects when they are fully approach to sustainability carbon emissions from 2020 completed will be over starts with our goal The report also highlighted business-as-usual levels. 160 million kWh per annum, to run a profitable, safe Keppel’s initiatives to harness which is the equivalent and responsible business renewable energy. For Keppel Corporation energy required to power providing the best value instance, Keppel Offshore continued to be listed among more than 28,000 homes in proposition to customers, & Marine (Keppel O&M) the top 10 constituents of Singapore for one year. while guided by our core and Keppel Infrastructure the Singapore Exchange’s values and operating are collaborating on a solar (SGX) Environmental, Social Both sustainability reports principles.” leasing project at Keppel and Governance (ESG) were externally-audited O&M’s yards, where the Indices – the SGX ESG and prepared in accordance Keppel’s progress in renewable energy generated Leaders Index and the SGX with the Global Reporting sustainability ties in with will help offset the yards’ ESG Transparency Index, as Initiative (GRI) Standards, the initiatives led by the United energy requirements. Some well as other sustainability world’s first global standards Nations (UN). This year, of the renewable energy indices and rankings, for sustainability reporting.

Keppel Corporation became certificates generated including the Dow Jones keppelite a signatory of the UN Global through this initiative will Sustainability Index, MSCI

Keppelite I Issue 3 / 2018 Sustaining Growth 23

Supporting global sustainable development

Keppel was the official main sponsor for the theme ‘SDG 11: Sustainable Cities and Communities’ at UNLEASH 2018. Keppel talents from across the Group also participated in the UNLEASH global innovation lab, and showcased their teams’ solutions and prototypes at the UNLEASH Marketplace

In 2015, 193 countries ‘SDG 11: Sustainable Cities showcased their solutions plans,” said Melvin agreed to work towards the and Communities’. and prototypes to the public. Ohng, Solution Architect, Sustainable Development The event was held alongside Keppel O&M. Goals (SDGs), a universal As part of UNLEASH 2018, Ecosperity, Temasek’s annual call to action to end six Keppel talents from sustainability-focused Ryan Ong, Assistant poverty, protect the across the Group joined conference at Suntec Manager, Project planet, establish peace, 1,000 participants from Singapore Convention & Management & and ensure prosperous, over 110 countries in an Exhibition Centre. Sustainable Design, Keppel fulfilling lives for all. eight-day innovation lab. Land, added, “UNLEASH Grouped in multi-cultural “My team worked on provided me with the To accelerate the creation teams, participants were improving the disaster invaluable experience of of scalable solutions guided through the process preparedness of slums working in a multi-cultural to the SDGs, Keppel of ideation and concept in Indonesia, which will team and taught me the sponsored UNLEASH development as they worked contribute to SDG 11: importance of embracing 2018 as a Main Track on innovative solutions for Sustainable Cities and diversity. Having an Partner. The event served their team’s chosen SDG. Communities. Apart from understanding of the as a global innovation improving infrastructure, we different cultural dynamics lab where sustainability In addition to pitching their proposed the development in consumption patterns talents convened to solutions to experts, mentors of an open source data enabled us to develop develop solutions for eight and peers, Keppelites also platform which can collect a scalable solution for selected SDGs. Keppel participated in the UNLEASH real-time data to inform reducing the material used sponsored the theme Marketplace, where teams emergency evacuation in the design of products.”

Keppelite I Issue 3 / 2018 24 Sustaining Growth

Eco-City enters new phase of development

The Sino-Singapore Tianjin Eco-City (Eco-City), a landmark bilateral project between the governments of Singapore and China, celebrates its 10th anniversary in 2018. Singapore’s Deputy Prime Minister (DPM) and Coordinating Minister for National Security, Mr Teo Chee Hean, recently visited the Eco-City in early July 2018, while Mr Masagos Zulkifli, Minister for the Environment and Water Resources of Singapore, visited the Eco-City in early

Mr Lawrence Wong (left), Minister for National Development and Second Minister for Finance for Singapore, and Mr Zhang Yuzhuo (right), May 2018. Tianjin Binhai New Area Party Secretary, officiated the launch of the city centre for the Eco-City on 1 July 2018 LAUNCH OF CITY CENTRE During DPM Teo’s visit to the Eco-City, he witnessed the launch of the city centre by Mr Lawrence Wong, Minister for National Development and Second Minister for Finance, and Mr Zhang Yuzhuo, Tianjin Binhai New Area Party Secretary on 1 July 2018. This marked a new phase in the development of the Eco-City.

The city centre, bounded by the Ji Canal and the Central Boulevard, is about 1 sq km, and will be the heart of commercial, leisure and recreational activities Accompanied by Chairman of Sino-Singapore Tianjin Eco-City Administrative Committee, Mr Shan Zefeng (first from left) and Keppel Corporation Chairman, Dr Lee Boon Yang (fourth from left), Deputy Prime Minister and Coordinating Minister for National Security for to enhance the Eco-City’s Singapore, Mr Teo Chee Hean (fourth from right); Minister for National Development and Second Minister for Finance for Singapore, attractiveness to businesses Mr Lawrence Wong (fifth from right); Senior Parliamentary Secretary for the Ministry of Transport and Ministry of Culture, Community and Youth for Singapore, Mr Baey Yam Keng (second from left); Senior Parliamentary Secretary for the Ministry of Home Affairs and Ministry of and talent. National Development for Singapore, Ms Sun Xueling (third from right), toured the Eco-City where they were briefed on the clean up of Jing Lake, formerly a heavily polluted wastewater pond

Keppelite I Issue 3 / 2018 Sustaining Growth 25

Minister Wong said, “I am and operated by a joint DPM Teo and his delegation in the management of water confident that the new venture between Keppel were also hosted to resources, waste, energy and facilities and amenities in Infrastructure and Tianjin a luncheon by Dr Lee the environment. the city centre will improve Eco-City Investment and Boon Yang, Chairman of the Eco-City’s standing as an Development Co. Ltd. The Keppel Corporation and Minister Masagos was also attractive business location Centre is able to upgrade senior management from briefed on SSTEC’s role as a and add weight to the Eco- treated wastewater effluent across the Group. master developer as well as City’s appeal as an attractive from an existing wastewater its efforts in developing place to work, live and treatment plant to meet FRUITFUL VISIT the Eco-City in an play in.” China’s most stringent Minister Masagos visited the environmentally sustainable national standard for Eco-City on 2 May 2018 as manner and its progress in DPM Teo visited the Eco-City wastewater discharge, and part of his three-day visit to meeting the Eco-City’s Key as part of his nine-day visit to produce high quality recycled China. During his tour of the Performance Indicators that China. During his tour of the water. The treated water can Eco-City, Minister Masagos cover various aspects of

Eco-City, DPM Teo visited the be used in a number of non- was briefed on the Eco-City’s sustainability. keppelite Low Carbon Living Lab in the potable applications. achievements and progress Eco-Business Park and was briefed by Mr Tay Lim Heng, CEO of the Sino-Singapore Tianjin Eco-City Investment Celebrating a decade of collaboration and and Development Co., Ltd. friendship (SSTEC), on SSTEC’s role as the master developer of the On 11 July 2018, SSTEC appreciation to those who growth came together Eco-City. celebrated the Eco-City’s had contributed to the for this joyous occasion. 10th anniversary with Eco-City. It was a night where old Mr Tay said, “We are happy a dinner reception at friends reconnected and for the opportunity to show Marina at Keppel Bay. Over 100 friends and reminisced about their DPM Teo the transformation associates from the public time spent working in of the Eco-City over the In his welcome remarks, and private sectors who the Eco-City while new past 10 years, from a barren Mr Tay expressed his played a part in the Eco-City’s connections were forged. wasteland to a livable and thriving green city. The city centre is the next phase of development that we are very much looking forward to and we will continue to collaborate with agencies and partners in Singapore and China to build a vibrant, smart and sustainable environment with good infrastructure and social amenities, attracting more people and companies to make the Eco-City their home. “

During his tour, DPM Teo was also briefed on the (From L to R) Ms Tin Pei Ling, CEO of Business China; Mr Mah Bow Tan, former Minister for National Development; Dr Cheong Koon Sino-Singapore Tianjin Hean, CEO of HDB; Mr Loh Chin Hua, CEO of Keppel Corporation; Mrs Ow Foong Pheng, Permanent Secretary of MND; Mr Tay Lim Heng, CEO of SSTEC; Dato’ Chew Chee Kin, President of Sunway Group; and Mr Teoh Hai Pin, Director of DP Architects, at the Eco-City Water Reclamation dinner reception hosted by SSTEC in celebrating the 10th anniversary of the Eco-City Centre, which is built, owned

Keppelite I Issue 3 / 2018 26 Special Focus

In commemoration of Keppel Corporation’s 50th anniversary, Keppelites from across the Group assembled in a ‘K50’ human formation against the scenic backdrop of Keppel Bay, the birthplace of the Company Celebrating as OneKeppel Over 200 Keppelites participated in the Keppel 50 Charity Run in celebration of Keppel Corporation’s 50th anniversary. To commemorate this occasion, Keppel made a $1 million donation to President’s Challenge 2018. Guest-of-honour President Halimah Yacob received the donation on behalf of President’s Challenge.

Keppelite I Issue 3 / 2018 27

1 2

3

At the break of dawn on 7 July 2018, Keppelites from across the Group gathered at the opposite ends of Singapore, eagerly anticipating the start of the Keppel 50 Charity Run. Organised by Keppelite Recreation Club (KRC), the 50 km charity run is one of the Company’s key events to commemorate Keppel Corporation’s golden jubilee.

The run, which was conducted in a relay format, had two routes – 4 the eastern route flagged off at the Keppel DHCS plant at Changi Business Park and included Bugis Junction Towers, where Keppel Land and Keppel Capital are located; whereas the western route started from Keppel Offshore & Marine (Keppel O&M) at Gul Road and included the headquarters of Keppel Telecommunications & Transportation.

1. Mr Chris Ong (centre), CEO of Keppel O&M, flagged off runners taking the western route, which started at Keppel O&M’s headquarters; 2. The run was conducted in a relay format, where groups of six to eight Keppelites covered distances of about 3 km per group; 3. Spirits were high as the 200-strong contingent made their way to the finish line at Keppel Island; 4. After a gruelling 50 km relay run, Keppelites from across the Group crossed the finish line together Continues on page 28...

Keppelite I Issue 3 / 2018 28 Special Focus

...continued from page 27.

Dr Lee Boon Yang (second from right), Chairman of Keppel Corporation, presented a cheque of $1 million to President Halimah Yacob (centre), who received the donation on behalf of President’s Challenge at the Keppel 50 Charity Run. Witnessing the cheque presentation were Mr Loh Chin Hua (rightmost), CEO of Keppel Corporation, Mr Chew Hock Yong (second from left), Permanent Secretary, Ministry of Social and Family Development, and Mr Sim Gim Guan (leftmost), CEO of National Council of Social Service

The two routes converged special occasion, Keppel and diversified into a multi- ends of Singapore, before at Keppel Bay Tower, the Corporation made a business company, providing converging at Keppel Bay... headquarters of Keppel $1 million donation to solutions for sustainable The run is also symbolic of Corporation. Runners and President’s Challenge 2018 urbanisation. However, we Keppelites across business Keppelites cheered as the in support of its programmes continue to cherish our units coming together, batons were passed to Dr Lee to empower vulnerable heritage and roots as a ship collaborating as OneKeppel, Boon Yang, Chairman of groups in Singapore. Dr Lee repair yard, on the Southern as we take the company Keppel Corporation, and presented the cheque of waterfront of Singapore. forward.” Mr Loh Chin Hua, CEO of $1 million to President Keppel Corporation, who led Halimah Yacob, who received “It is therefore very Dr Lee added, “We are the 200-strong contingent on the donation on behalf of appropriate that this committed to making its final leg to Keppel Island, President’s Challenge at the morning, in support of a positive impact on the where participants crossed event. President’s Challenge, over community wherever we the finish line together. 200 Keppelites completed operate. Hence, to mark In his address, Dr Lee said, a 50 km relay, starting from Keppel’s 50th anniversary, GIVING BACK “Over the years, Keppel has Keppel’s business units on we are pleased to make a To commemorate this grown, expanded overseas, the eastern and western contribution of $1 million

Keppelite I Issue 3 / 2018 29

through Keppel Care Foundation to President’s Challenge, to support its important efforts to assist and serve vulnerable groups.”

President Halimah said, “I am heartened that Keppel has chosen to celebrate its 50th anniversary by giving back to society, to help the less privileged among us. I hope that companies in Singapore will continue to give generously, not only by providing financial support, but through volunteerism and sharing of knowledge and expertise.”

Mr Lim Tow Fok, President President Halimah Yacob (seated, centre), Dr Lee Boon Yang (standing, rightmost), Chairman of Keppel Corporation, and Mr Loh Chin Hua of KRC and GM of Property (standing, third from left), CEO of Keppel Corporation, joined Keppel’s beneficiaries from Monfort Care and Care Corner in a moss art activity Management at Keppel Land, shared, “The Keppel 50 Charity Run sets the perfect stage for Keppelites from across the Group to forge closer bonds by completing a run together, while contributing to a meaningful cause. The camaraderie among the runners as they encouraged and cheered each other on was truly remarkable.”

Added one of the runners, Liu Yao, Engineer at Keppel Singmarine, “While the run was tiring, the sense of collective pride in crossing the finish line together with other Keppelites made it all worthwhile.”

During the intergenerational crafts workshop, children and seniors filled ‘Jars of Happiness’ with sweet treats together Continues on page 30...

Keppelite I Issue 3 / 2018 30 Special Focus

...continued from page 29.

RESTORING A PIECE OF Commander in Chief of the to share with the public the Jessica Leong, Marketing HISTORY Straits Settlements. King’s historical significance of this Manager, Keppel Land, The Keppel 50 Charity Run Dock was at that time the location. shared, “We cherished this also saw the unveiling of second largest dock in the opportunity to host both the historic King’s Dock world. TOUCHING LIVES the elderly and children at plaque by Dr Lee and Keppel Volunteers also held the same Keppel Volunteers Mr Loh, witnessed by The plaque was removed an intergenerational crafts event. A lot of effort and President Halimah. The during the redevelopment of workshop at the event to thought went towards plaque was laid over a century Keppel Bay close to 20 years share this special occasion ensuring that the activities ago, to commemorate the ago. To mark Keppel’s golden with children from Care were meaningful, and it opening of King’s Dock in jubilee, the marble plaque Corner and seniors from was indeed touching to see 1913 by Sir Arthur Henderson has been restored and will be Montfort Care. Each child the seniors and children Young, then Governor and displayed near King’s Dock, was paired with a senior, exchange ‘Jars of Happiness’. and under the guidance of a Of course, the highlight volunteer, worked on a moss for all of us was meeting art piece and filled ‘Jars of President Halimah.” Happiness’ with sweet treats together. Chirped 10-year-old Ameliya Sofiya, “I felt special when The whole room buzzed presenting the President with excitement as President with the flowers. The Halimah joined in the moss President also joined my art activity. For many of the table while we were doing beneficiaries and volunteers, moss art and I felt very

it was their first time meeting happy.” keppelite the President, and they were eager for her to view their creative works. The historic King’s Dock plaque, which was laid over a century ago, had been restored and was unveiled during the event

Twenty volunteers and 40 children and seniors participated in an intergenerational crafts workshop held at the event

Keppelite I Issue 3 / 2018 Sustaining Growth 31

Providing urban solutions

As part of efforts to capture recent months to develop an MOU with Filinvest KUS also signed an MOU opportunities in integrated solutions for sustainable Development Corporation with ST Engineering in July master development, urbanisation in the (Filinvest) to explore 2018 to leverage mutual Keppel Urban Solutions Philippines, Vietnam and collaboration opportunities capabilities in the design and (KUS) signed two non- other markets. in the Philippines as well implementation of smart city binding Memorandum of as develop and enhance masterplans and solutions Understandings (MOU) in In April 2018, KUS signed urban solutions for Filinvest’s to be deployed in Keppel’s development portfolio. This developments, as well as to includes the 244-hectare (ha) collaborate on third-party Filinvest City in Alabang, projects in the Asia-Pacific. which is home to a large The partnership targets cities number of business process and developments looking outsourcing offices and for end-to-end services residential enclaves; the that weave in smart city 288-ha Filinvest New Clark technologies seamlessly. City in Central Luzon, which Beginning with projects in is envisaged to pioneer the Vietnam, where Keppel has development of a global and a strong presence and track smart business community; as record, the partnership may well as office developments also be extended to other

that are built around the markets. keppelite Ms Cindy Lim (right), MD of KUS, and Mr Andrew T. Gotianun Jr (left), Director of Filinvest, needs of technology-based signed an MOU on behalf of their respective companies to develop solutions for sustainable urbanisation in the Philippines. The MOU was signed in the presence of Mr Rodrigo Roa companies in Metro Manila. Duterte (background), President of the Philippines Vessels of tomorrow

As part of its digitalisation as channelling, berthing, Mr Chris Ong, CEO of Keppel provide the latest cutting- drive, Keppel Offshore mooring and towing. O&M said, “As a leader in edge technologies to our & Marine (Keppel O&M) the design and construction customers.” signed a Memorandum In the context of ports, of specialised vessels, we of Understanding (MOU) the development and have been developing Keppel O&M will use its with the Maritime and Port application of remote or advanced remote monitoring remote vessel monitoring Authority of Singapore autonomous vessels could and analytics systems for and analytics programme, (MPA) and the Technology potentially automate vessels. The industry is keen VesselCare™, as the base Centre for Offshore operations and enhance to explore the commercial platform in the initial phase to and Marine Singapore safety and productivity. Such use of autonomous vessels develop autonomous vessels. (TCOMS) on 25 April developments and pilot as there are multiple VesselCare™ is able to 2018 to jointly develop projects will contribute to safety, efficiency and cost perform data consolidation, autonomous vessels for Singapore’s experience and benefits. This partnership condition-based monitoring a variety of applications, act as demand drivers for demonstrates Keppel O&M’s and maintenance, mining including undertaking local capability development commitment to be at the and analytics of vessels. keppelite harbour operations such in selected areas. forefront of research and

Keppelite I Issue 3 / 2018 32 Sustaining Growth

Shaping cities of the future With urbanisation taking place at unprecedented rates worldwide, cities face increasing pressures to meet energy, infrastructure, urban living and connectivity needs. With a strong track record in contributing to sustainable development, Keppel participated actively in the World Cities Summit and Singapore International Water Week and was also the sponsor of the Lee Kuan Yew World City Prize.

has committed a total of $3.5 million to sponsor the Prize from its inauguration in 2010 through to 2028.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, “Congratulations to the city of Seoul for its visionary leadership and active citizen engagement that have come together to make Seoul the vibrant, people-centric and innovative city it is today. Keppel shares the same commitment to building smart and highly liveable

President of Singapore, Mdm Halimah Yacob (second from right), presented the Lee Kuan Yew World City Prize to His Excellency Park Won-soon cities, through our solutions (second from left), the Mayor of Seoul. Witnessing the ceremony was Dr Lee Boon Yang (far right), Chairman of Keppel Corporation, and Mr for sustainable urbanisation Loh Chin Hua (far left), CEO of Keppel Corporation and looks forward to deepening our collaboration From 8 to 12 July 2018, liveable and resilient through This year, the Lee Kuan Yew with Seoul.” international mayors, better governance and World City Prize went to policymakers, industry planning, technology and Seoul, for its transformation Another highlight of WCS experts and leaders in social innovations, as well as from a bureaucratic, top- was the Mayors Forum, both the private and collaborations with various down city to one that is where Mr Louis Lim, COO, public sectors gathered at stakeholders. innovative, inclusive and Keppel Land, spoke on the biennial World Cities dynamic. the Group’s experience in Summit (WCS), themed A key highlight of the public-private partnerships, ‘Liveable and Sustainable WCS was the Lee Kuan Mr Park Won-soon, Mayor including its role in leading Cities: Embracing the Future Yew World City Prize, of Seoul, received the prize the Singapore Consortium through Innovation and which recognises the from President of Singapore, in the development of the Collaboration’, held at the outstanding achievements Mdm Halimah Yacob, at the Sino-Singapore Tianjin Eco- Marina Bay Sands Expo & and contributions of cities award ceremony on 9 July City (Eco-City). Convention Centre. and key leaders in tackling 2018. The prize comprised urban challenges and an award certificate, a gold Sino-Singapore Tianjin During the summit, creating liveable, vibrant medallion and a cash prize of Eco-City Investment and attendees exchanged ideas and sustainable communities $300,000. As sole sponsor of Development Co. Ltd. on how to make cities more around the world. the prize, Keppel Corporation (SSTEC) also participated

Keppelite I Issue 3 / 2018 Sustaining Growth 33

actively in the WCS, with a booth showcasing the latest developments in the Eco-City. Deputy Prime Minister of Singapore, Mr Tharman Shanmugaratnam, together with Prime Minister of Sri Lanka, Ranil Wickremesinghe, Mr Lawrence Wong, Minister for National Development and Second Minister for Finance in Singapore, and other dignitaries, visited Mr Tharman Shanmugaratnam (fifth from left), Deputy Prime Minister and Coordinating Minister for Economic and Social Policies for Singapore; Mr Lawrence Wong (third from left), Minister for National Development and Second Minister for Finance for Singapore; Ms Sun Xueling (far the SSTEC booth where left), Senior Parliamentary Secretary for Home Affairs and National Development for Singapore; Mr Shan Zefeng (second from right), Chairman they were received by of ECAC; Dr Lee Boon Yang (fourth from right), Chairman of Keppel Corporation; Mr Loh Chin Hua (third from right), CEO of Keppel Corporation and Mr Tay Lim Heng (first from right), CEO of SSTEC, at the SSTEC booth at WCS Dr Lee Boon Yang, Chairman of Keppel Corporation; Mr Loh Chin Hua, CEO of Keppel Corporation, as well as Mr Tay Lim Heng, CEO of SSTEC, who briefed the leaders on the development plans for the Eco-City’s city centre. Separately, Mr Tay also presented on the Eco- City’s achievements and experiences at the China Innovation Forum, which was one of the Business and City Solutions Forums at WCS.

Ms Cindy Lim, MD of Keppel Urban Solutions (KUS), Mr Tan Boon Leng (centre), ED of Environmental Infrastructure at Keppel Infrastructure, and Mr Jackson Goh (right), GM of Business participated in the Global Development, Keppel Infrastructure, briefed Ms Amy Khor (left), Senior Minister of State for the Ministry of the Environment and Water Infrastructure Initiative Resources, on the highlights of the Keppel Marina East Desalination Plant Roundtable: Smart Cities in Southeast Asia organised by In a showcase of SINGAPORE by Keppel Infrastructure, McKinsey & Company, which Singapore’s success as INTERNATIONAL featured the Keppel Marina was a sideline event at the a ‘green city’, delegates WATER WEEK East Desalination Plant, WCS. Ms Lim spoke on KUS’ experienced the country’s Held in conjunction Singapore’s first large-scale, active involvement in the first freshwater forest with WCS, Singapore dual-mode desalination plant planning and development wetland in the heart of the International Water Week is capable of treating both of smart city projects, and city, the Keppel Discovery an industry-focused global freshwater and seawater shared how the company’s Wetlands at the Singapore platform which encourages depending on rainfall, and pilot project, Saigon Sports Botanic Gardens. Keppel participants to share and the Hong Kong Integrated City in Ho Chi Minh City, Volunteers hosted the co-create innovative water Waste Management Facility, will combine high-quality guests and served as green solutions. which will play a key role urban living with vibrant and ambassadors during the in Hong Kong’s waste healthy lifestyles. visit. Keppel’s booth, anchored management strategy. keppelite

Keppelite I Issue 3 / 2018 34 Sustaining Growth

Leading the green building movement

of the World Green Building leaders who work hard to for this opportunity. I look Council (WorldGBC) for his ensure WorldGBC delivers on forward to fostering closer proven leadership in the its mission of green buildings collaboration with industry green building movement for everyone, everywhere. partners, corporates and and dedication to improving Swee Yiow has earned his green building councils the sustainability of buildings place on the Board through worldwide to further the globally. his commitment to, and green building agenda. expertise in, professional As a solutions provider for Ms Terri Wills, CEO of the governance and sustainability sustainable urbanisation, WorldGBC, said, “Swee in the sector. I look forward Keppel places sustainability Yiow has demonstrated to working with him and our at the heart of its business. Mr Tan Swee Yiow outstanding leadership in the fellow Directors to make that We are committed to field of sustainability, and has mission a reality.” supporting efforts by the Mr Tan Swee Yiow, CEO championed green building international community in and ED of Keppel REIT as one of the most effective Mr Tan said, “I am tackling climate change, and Management and President solutions to climate change. honoured to represent will continue to work with all of the Singapore Green Singapore on this important stakeholders in our journey Building Council (SGBC), has “Our Board of Directors is an international platform, towards shaping a more

been appointed to the Board influential group of global and thank the WorldGBC sustainable future. ” keppelite Enhancing customer experience

As a leading real estate Smart Home App, and providing homeowners and SG Mark was established in company, Keppel Land is KLOUD Smart Mobile App. office users the convenience 2013 to set the benchmark constantly exploring new of managing condominium for design quality that ways of enhancing customer New technologies were facilities and booking impacts businesses and experiences through its integrated in these meeting rooms with just a communities in Singapore

innovative designs, which three projects to provide tap of the mobile phone. and beyond. keppelite take into account multi- customers with an enhanced dimensional considerations experience. For instance, such as usability, reliability leveraging virtual reality in the and maintainability. Highline Residences allowed Keppel Land to showcase As a testament to its different configurations and ‘Thinking Unboxed’ brand apartment types without philosophy, Keppel Land having to create the physical received the Singapore Good show suite – an efficient Design Mark (SG Mark) solution for land-scarce cities Award on 10 May 2018 such as Singapore. for three of its projects: Highline Residences Virtual Smart mobile apps were Reality Show Suites, Corals developed for Corals at The Habitap Smart Home App by Keppel Land is Asia’s first fully integrated smart home management system which allows homeowners to control their smart home devices and at Keppel Bay – Habitap Keppel Bay and KLOUD, condominium facilities with a mere tap of the finger

Keppelite I Issue 3 / 2018 Sustaining Growth 35

Leader in ship repair

Keppel Shipyard received 2018, where it received the held in conjunction with the contributions and recognition for its continuous Ship Repair & Innovation Singapore Maritime Week achievements of companies efforts in innovation at the Award. 2018 and attended by close and individuals in the 11th Seatrade Maritime to 400 maritime industry maritime sector. Awards Asia on 25 April The Awards, which was professionals, recognises Keppel Shipyard was recognised for its impressive track record in ship repair and conversion, which includes the conversion of a semisubmersible heavy lift vessel to a crane vessel in just eight months. In addition, Keppel Shipyard is able to carry out 3D scanning of vessels and use the data to engineer solutions for the retrofit of ballast water treatment systems and sulphur oxide scrubber

equipment. keppelite Mr Albert Kee (centre), ED (Operations), Keppel Shipyard, received the Ship Repair & Innovation Award on behalf of the company

At the forefront of new energy

Keppel Prince Engineering, It also undertakes repair and Australia’s largest and maintenance activities for the Victoria’s only wind tower aluminium smelter industry, manufacturer, received the and provides industrial New Energy Technology engineering fabrication Award at the Manufacturing services to Telstra and other Hall of Fame event in companies in Australia. Melbourne, Australia. Held on 29 May 2018, the event Moving forward, Keppel recognises outstanding Prince Engineering will be businesses and individuals making small investments in manufacturing. to reorganise its wind towers fabrication facilities Keppel Prince Engineering to improve productivity, has built wind turbine including through the towers for leading turbine application of automation Mr Stephen Garner (right), GM of Keppel Prince Engineering, received the New Energy Technology Award on behalf of the company from Mr Ben Carroll (left), Australia’s Minister suppliers around the world. and robotics. keppelite for Industry and Employment

Keppelite I Issue 3 / 2018 36 Sustaining Growth

Expanding networks

(From L to R) Mr Abu Bakar, MD (Gas & Specialised vessels), Keppel O&M; Dr Lee Boon Yang, (From L to R) Dr Carl Trowell, CEO, Ensco; Mr Clay Williams, Chairman, President and Chairman, Keppel Corporation; Mr Paul W. Verheul, COO, Van Oord; and Stefan Hansum, CEO, NOV; and Mr Loh Chin Hua, CEO, Keppel Corporation and Chairman, Keppel O&M Plant Department Manager, Van Oord

(From L to R) David Wukasch Jr., Project Engineer, Diamond Offshore; Mr Chris Ong, CEO, (From L to R) Mr Chor How Jat, MD (Conversions & Repairs), Keppel O&M; Mr Maarten Van Keppel O&M; Mr David Wedgeworth, Director of Engineering Projects, Diamond Offshore; Aller, COO, Floating Production of Petrofac; Mr Luc Pescio, MD, Ocean Dynamics; and Mr Tey and Mr Tan Leong Peng, ED (Offshore), Keppel O&M Wee Hong, GM (Commercial – Conversions), Keppel Shipyard

Keppel Offshore & Marine and gas conference, the year’s OTC focused on topics private cocktail receptions at (Keppel O&M) regularly annual Offshore Technology such as new technologies, OTC. Held on 1 May 2018, participates in industry events Conference (OTC), saw safety and ways to achieve the reception was attended to develop new partnerships industry leaders convene in cost reductions while by more than 900 customers, and exhibit its extensive Houston, Texas, to provide improving overall value. partners and associates. range of solutions. market updates and discuss opportunities. Held from 30 Keppel O&M hosted one of Keppel O&M also The world’s biggest oil April to 3 May 2018, this the most highly anticipated participated in Posidonia

Keppelite I Issue 3 / 2018 Sustaining Growth 37

2018 held in Athens, saw participation from over Greece, from 4 to 8 June 2,000 exhibiting companies 2018. A leading shipping and 23,000 visitors from exhibition, the biennial event around the world. keppelite

Posidonia 2018 was attended by Dr Lam Pin Min (fourth from right), Senior Minister of State, Ministry of Transport and Ministry of Health, as well as senior management from Keppel O&M

Engaging investors

On 19 May 2018, Keppel The Keppel Capital booth Capital participated in showcased Keppel’s the fourth edition of the three listed REITs, namely REITs Symposium at Suntec Keppel REIT, Keppel DC REIT Singapore Convention & and Keppel-KBS US REIT, Exhibition Centre, which as well as its listed business featured over 34 Real Estate trust, Keppel Infrastructure Investment Trusts (REITs) and Trust. The company’s booth Exchange Traded Fund (ETF) was well-received and issuers. Keppel Capital’s investor relations team spent the The full-day event was day addressing questions attended by close to 1,200 posed by investors. Factsheets investors from across were also distributed to help different age groups, ranging investors learn more about from retirees to young adults, the REITs and their business many of whom were first- operations. keppelite time investors. Investors at the Keppel Capital booth at the fourth edition of the REITs Symposium

Keppelite I Issue 3 / 2018 38 HSEMATTERS

Towards zero fatalities

Dear Keppelites,

Safety is a never-ending journey. I would like to remind Keppelites of recent high-risk incidents While our Accident Frequency Rate and near misses that had potentially fatal outcomes. For has been at acceptable levels, we example, a worker in Singapore suffered from a heat stroke, need to work harder to bring our while another worker at our overseas business unit suffered Accident Severity Rate in line with an electric shock while installing steel plates. industry norms. To reinforce the importance of safety among employees and The management and Health, contractors, we once again held a Global Safety Time-Out Safety and Environment (HSE) on 17 July 2018, which reminded stakeholders not to take

R K Jaggi teams across the Group, together safety for granted. Let us all play our part – maintain high with the Board Safety Committee levels of safety awareness, follow safety procedures, and act (BSC) and other stakeholders, have been working hard to proactively with a mindset that all incidents can be prevented. make our workplace safer and healthier for everyone. Together, we can achieve our zero fatality target.

We have and will continue to take a holistic and strategic approach to achieve our goal of eliminating fatalities in Keppel’s global operations. This is driven by the Zero Fatality Strategy, which contains five strategic thrusts or focus areas: • Building a high-performance safety culture • Adopting a proactive approach to safety management GM, Group HSE, Keppel Corporation and • Leveraging technology to mitigate safety risks Chairman, Inter-Strategic Business Unit Safety Committee • Harmonising global safety practices and competencies • Streamlining learning from incidents

HAND AND FINGER SAFETY reinforce the habit of always having In his engagement with operational In conjunction with the Workplace the right protection and to look out staff, Dr Lee Boon Yang, Chairman of Safety & Health Council’s (WSHC) for potential hazards whenever work is Keppel Corporation, reinforced the National Hands and Fingers Safety done using hands and fingers.” company’s key safety messages and Campaign, Keppel Shipyard organised guidelines. a campaign from March to April 2018, Workers are encouraged to recite the which emphasised the importance of ‘Hands-Off Hands-Off Pinch Points, In the KMC plant where there are fewer hand and finger safety. The campaign My Hands My Pride’ slogan during the obvious hazards compared to worksites saw participation from over 6,000 daily toolbox meetings as a reminder to in other high-risk industries, Mr Tan personnel. keep their hands away from potential Ek Kia, Chairman of Keppel Corporation’s pinch points. BSC, observed that the greatest risk is Mr Yong Chee Min, Director of HSE, that of complacency, and urged staff to Keppel Offshore & Marine (Keppel HANDS-ON SAFETY remain alert. Mr Loh Chin Hua, CEO of O&M) said, “Hand and finger injury is On 6 June 2018, members of Keppel Keppel Corporation, commended staff a common safety hazard in our industry. Corporation’s BSC visited the Keppel for the plant’s exemplary Process Safety, Through this campaign, we aim to Merlimau Cogen (KMC) plant. and recommended that these processes

Keppelite I Issue 3 / 2018 HSEMATTERS 39

Leveraging technology to mitigate safety risks

Keppel harnesses technology and implements innovative solutions to ensure safe operations across its businesses.

Keppel O&M operates drones

Senior managers from across the Group attended a coaching and peer sharing session on how they can best support their to inspect hard-to-access parts frontline managers in enhancing their safety leadership on the ground of vessels and rigs such as the jackup rig’s legs, side-shell of the external hull, derrick and cranes. be extended to other plants operated a structured process – Design for Safety Drones are also used at KMEDP to by Keppel Infrastructure Services and (DfS). regularly capture aerial photos of across the Group. the construction site to help inform The Keppel Marina East Desalination progress reports and identify safety LEADING BY EXAMPLE Plant (KMEDP) is the Group’s first issues. As part of Keppel’s continuous efforts industrial development that utilises DfS, to enhance safety culture across with the aim of making it a safer plant Remotely operated vehicles and the Group, the Safety Leadership to operate and maintain. For example, robots have also been designed Coaching programme was launched the team identified poor soil conditions and built by Keppel O&M to in 2017 to equip frontline managers as a possible safety hazard that may conduct underwater surveys as well with the skills to effect change in result in an unstable foundation. as inspections in other inaccessible workers’ safety behaviour as well as Following the guiding principle of safety areas such as crane cable trenches. enhance engagement and build trusting being embedded in design, the team relationships with workers. promptly conducted soil investigations At some of Keppel Land’s projects to assess the best way for construction in Tianjin and Jakarta, surveillance Since then, the programme has been to proceed. cameras with pan-tilt-zoom expanded to include senior managers capabilities are installed at strategic so that they can better support their As for the planned renovation and locations around the work sites. frontline managers. The latest run was revamp of the Keppel Bay Tower office Images from these cameras can conducted in May 2018, and had 101 space, the team is making every effort be streamed and viewed on a participants. to establish a new office environment computer or mobile device anytime. which considers the health, safety This allows project managers to DESIGN FOR SAFETY and wellbeing of all stakeholders at monitor site construction progress HSE teams across the Group recognise the planning stage. Similarly, at The as well as identify potential safety that upstream efforts are vital to the Garden Residences, the project teams issues in a cost-effective manner. better management of safety risks that are conducting extensive safety reviews typically materialise in downstream and incorporating insights gleaned processes. Safety risks are identified into the design, construction and from the onset, and risk control maintenance stages. keppelite solutions are incorporated upfront at the planning and design stage through

Keppelite I Issue 3 / 2018 40 Sustaining Growth

Insightful sharing

Keeping abreast of global macroeconomic and geopolitical developments helps ensure that the Group is well-placed to manage risks, develop robust strategies and capitalise on new business opportunities.

On 24 May 2018, Keppel invited Dr Andrew Staples, Global Editorial Director, and Mr Peter Kiernan, Lead Analyst (Energy), both from the Economist Corporate Network, to share insights on global growth, trade protectionism and recent developments in China, Indonesia, the United States Mr Sunny Verghese, Co-founder and Group CEO of global agri-business Olam International, shared with Keppelites Olam’s sustainability and Vietnam. approach and journey

Dr Staples and Mr Kiernan Olam International, shared farmers in its supply chain, to do their jobs, and last but also shared their views on Olam’s sustainability and launched a digital not least, “provide purpose”. on industry trends for approach and journey. About platform to provide its He opined that the presence the renewables market 100 Keppelites attended the customers with data on the of purpose drives employees and potential business Grow Beyond Talk organised sustainability of products. to be the best version of opportunities as well as by Keppel Leadership Olams’ customers, which themselves, what he refers to associated risks for specific Institute. include some of the world’s as an “inspired employee”. countries and industries. largest consumer goods Mr Verghese, who is companies, find value in Mr Verghese also remarked The session, attended by also the Chairman of the having traceability of their that the millennial generation board directors and senior World Business Council for impacts. is far more engaged with management from across Sustainable Development, environmental and social the Group, was conducted shared that the rationale for Olam hires 72,000 employees issues than their predecessors. as part of Keppel’s Leaders placing sustainability at the across 66 countries and aims With millennials representing Insights series. It was heart of business is that it is to attract the best talent. the majority of the workforce jointly organised by Keppel simply the right thing to do. Mr Verghese believes today, companies need to Corporation’s Group Risk & that when employees are recognise that it takes more Compliance department and Investing in sustainability engaged, productivity than a paycheck or employee Keppel Leadership Institute. also allows Olam to build is doubled. To engage benefits to engage the new competitive advantages. employees, companies wave of talent and secure At a separate event on 31 May The “world’s largest should offer fair wages, their future talent pipeline.

2018, Mr Sunny Verghese, corporate farmer” mapped remove bureaucratic keppelite Co-founder and Group its environmental footprint, processes, equip employees CEO of global agri-business including that of 4.7 million with the resources and skills

Keppelite I Issue 3 / 2018 Sustaining Growth 41

Spurring Innovations

Improving productivity with technology

Bearing testament to an repetitive paperwork. By the tender period has been the best suppliers, keep innovative workplace streamlining and automating significantly shortened to track of cost overruns, and culture, a team from Keppel each of these steps, Ji Shu Ju 120 man-days, representing a provide a more accurate Land China has developed helps to reduce man-hours 56% increase in productivity. assessment of their business Ji Shu Ju (吉数据), an online and improve productivity. development budget. platform to manage its entire Apart from providing procurement and contracting For example, a group a centralised record of Ji Shu Ju is also available on process. procurement tender that Keppel Land’s preferred WeChat, with a mobile app spans across multiple cities and blacklisted contractors version of the platform in The key steps in the in China used to take up to and suppliers, Ji Shu Ju’s the pipeline. procurement process – 270 man-days to complete. database also tracks cost budgeting, procurement, With Ji Shu Ju’s standardised information for all key Since the launch of Ji Shu Ju, cost control and contract documentation system, cities in China. This allows Keppel Land China has management – typically historical cost database procurement personnel to reaped productivity gains involve large volumes of and simplified processes, manage cost trends, select and cost savings.

The digital platform clinched an award in the ‘Entrepreneurship and Innovation’ category at the inaugural Pinnacle Awards at the Keppel Land Annual Staff Conference this year. The awards recognise projects and individuals who exhibit attributes which support the key strategic thrusts of FutureKeppel – Agility, Collaboration as well as Entrepreneurship and

Innovation. keppelite

Ji Shu Ju is an online platform developed by Keppel Land China to manage the company’s procurement and contracting process

Keppelite I Issue 3 / 2018 42 Empowering Lives Lives

Enriching minds

Keppel Young Leaders (KYL) among those inspired by Minister of State, Mr Teo his passion for starting regularly organises dialogue the session. She said, “It Ser Luck, was invited to share new businesses. Prior to sessions for Keppelites to was very interesting to learn his entrepreneurship journey his entry into parliament, glean valuable insights from Mr Lamy’s sharing with Keppelites. Mr Teo was in the corporate from the Group’s senior on where Keppel stands sector as an employee and management and eminent in terms of sustainability A self-professed serial subsequently his own boss external speakers. and start-up investments, entrepreneur, Mr Teo has running startups. He drew when compared with other built several ventures ranging parallels between the clear SHAPING FUTUREKEPPEL organisations. It was also from education and sports to sense of purpose one needs On 1 June 2018, more than insightful to hear from him fintech. In his role as Minister to run a business and his 60 Keppelites gained a on the potential issues and of State for Manpower as own passion of trail running; deeper understanding of the strategies for Keppel moving well as Minister of State Mr Teo exhorted Keppelites Group’s strategic direction forward.” for Trade and Industry, not to get too carried away in a KYL Leader’s Dialogue Mr Teo helped start-ups and managing the expectations with Mr Sebastien Lamy, CULTIVATING small and medium-sized of others. Instead, he said, Director of Group Strategy ENTREPRENEURSHIP enterprises improve their “Define success for yourself & Development, Keppel As a lead up to the productivity. and pursue your own peaks.”

Corporation. Keppel Tech Symposium keppelite organised by KYL, Member In his address, Mr Teo At the session themed of Parliament and former shared with Keppelites ‘Shaping the FutureKeppel’, Mr Lamy elaborated on the strategies that the Group is pursuing and shared with Keppelites his experience working in Bain & Company, where he was involved in consultancy projects with Keppel.

This was followed by an hour-long question and answer session where Mr Lamy candidly shared his views on sustainability, innovation and technology, market trends and outlook, as well as opportunities and threats ahead.

Lim Shu Ping, Assistant Manager, Business Solutions, Keppel Logistics, was Mr Teo Ser Luck shared his entrepreneurship experiences as well as the ups and downs of running his own startups

Keppelite I Issue 3 / 2018 Empowering Lives 43

Scaling new heights

Keppel Land senior management, led by Mr Loh Chin Hua (fifth from left), CEO of Keppel Corporation and Executive Chairman of Keppel Land, addressed questions from staff during the Annual Staff Conference’s question and answer segment

Keppel Land’s Annual Staff Corporation and Executive updates on the company’s best practices and ideas Conference (ASC), which Chairman of Keppel Land, performance in various throughout the four- took place from 22 to 25 May shared on the company’s markets, shared perspectives day conference as they 2018 at the Marina Bay Sands performance over the past on business strategies and participated in teambuilding Expo & Convention Centre, is year and highlighted the fielded questions from the sessions and functional an important annual event importance of harnessing audience in a question and training workshops on various which serves as a platform synergies across the Group, answer segment. topics including business for senior management which will enable business development and safety. The to share the company’s units to hunt as a pack and This year’s ASC also saw the conference culminated in the strategic direction and key capture new profit pools launch of the inaugural Keppel annual Dinner and Dance, performance highlights with together. Land Pinnacle Awards, where which was themed ‘Glow into staff. It also facilitates the six individuals and eight teams the Future’. exchange of best practices In his address, Mr Louis Lim, were recognised for leading and ideas among employees. COO of Keppel Land, shared projects that exemplified Similar country-level staff that against the backdrop agility, collaboration as conferences were also held This year’s ASC, themed ‘Stay of a dynamic business well as entrepreneurship in Vietnam and China from Agile. Scale New Heights’, environment, the company and innovation. Audience 3 to 6 April 2018 and 24 to was attended by over must continuously evolve members also voted for the 27 April 2018 respectively. 400 employees from both and ‘think unboxed’ so that most inspirational project in Close to 380 staff attended Singapore and overseas. its targets can be achieved. an online poll conducted via the Vietnam ASC, while Yammer. over 200 staff attended the

In his opening speech, Mr Loh Keppel Land’s senior China edition. keppelite Chin Hua, CEO of Keppel management also provided Employees also exchanged

Keppelite I Issue 3 / 2018 44 Empowering Lives

Encouraging innovation

A Pre-Keppel Tech relevant and ahead of the (KTI), shared insights on is critical for FutureKeppel Symposium was held on competition. technology trends and that we continue to harvest 31 May 2018. Organised foresight, opportunities to and develop the ideas and by Keppel Young Leaders A panel comprising repurpose operations to talent across the Group, and (KYL), the event aimed Mr Sebastian Lamy, address market disruptions build on the momentum to encourage innovation Director, Group Strategy and commercialising ideas we have created around among young talents. & Development, Keppel towards tangible outcomes. innovation over the years,” Corporation; Mr Mathew he shared. In his opening remarks, Pollard, CEO of Keppel Mr Louis Lim, MD of KTI, in Dr Lee Boon Yang, Chairman Infrastructure Fund his message to the Group, One such idea is Project of Keppel Corporation, Management; and Mr Aziz encouraged Keppelites to Urban High-Rise Hydro emphasised the need to Merchant, Director, participate actively in the Power, the overall winner of rapidly adapt to technology Technology, Keppel symposium as well as the last year’s symposium. The innovations in order to stay Technology & Innovation events leading up to it. “It project taps on the energy generating potential of the greywater system in high rise buildings by using turbine technology combined with specialised Internet of Things monitoring. The project team is currently working with the Singapore University of Technology and Design to develop their first prototype.

keppelite

Panellists at the Pre-Keppel Tech Symposium fielded questions from the audience on technology innovations

Engaging union members

Keppel Credit Union (KCU), Bernard Tan, Chairman of members also approved the local tourist attractions, a co-operative within the KCU, assured members board’s recommendation of subsidised overseas trips, Group that provides financial that the Union had built up a 10% dividend on share compassionate grants, book support to its members, held strong reserves over the years capital. prize awards for members’ its 39th Annual General through its prudent financial children and subsidised eye

Meeting (AGM) at Resorts policies and would be able to Besides offering financial checks. keppelite World Sentosa on 18 May continue providing benefits assistance, KCU also 2018. to its members. provides its members with various benefits, including In his address, Professor During the meeting, complimentary passes to

Keppelite I Issue 3 / 2018 Keppelite I Issue 3 / 2018 Empowering Lives 45

Keppelites Around the World

Spirit of adventure

Before his posting to Yangon, safety in Sedona Hotel him, Gwo Yinn reflected, here may not be as modern Myanmar in 2013, Lee Gwo Yangon by communicating “I have grown a lot since like in Singapore, there are Yinn, Director of Safety and and enforcing policies and coming here in terms of many beautiful architectural Security at Sedona Hotel procedures. One of his most adapting and becoming structures here,” he said. Yangon, had never set foot memorable projects is the more confident. There in the country. “I had been bio-decontamination of are a lot of challenges in Gwo Yinn added cheerily. working at construction the hotel’s air-conditioning managing project timelines “The people of Myanmar sites in Singapore as a Safety system. “This project helped in Yangon, so I have learnt are very friendly and open, Officer, and was eager to try Sedona Hotel Yangon to adapt by planning ahead so it is easy to make friends. something more exciting. achieve the requirements for and provisioning for delays Last year, I attended local This overseas posting was Green Mark certification, and in timelines.” language classes together one of my main reasons for more importantly, provides with other expats. As the local joining Keppel Land,” he our guests and employees Never one to shy away from language is complex, I am shared. with cleaner, healthier air,” new experiences, Gwo Yinn still not proficient enough to he said. has a history of living and converse fluently. However, In his role, Gwo Yinn is working away from home. having a basic understanding in charge of establishing When asked how his Originally from Malaysia, he of the language has allowed a culture of health and experience has changed began studying and working me to better appreciate the in Singapore since 1986, culture of the country.” and even did a one-month art residency in Barcelona, Gwo Yinn’s overseas Spain. experiences have only intensified his curiosity about “Yangon reminds me a other cultures. When asked if lot of my time growing up he would like to live in other in Malaysia. Being here is countries after his current like travelling back in time, stint, Gwo Yinn responded to when life was simpler with a resounding “yes”. He and people were more encourages other Keppelites traditional,” he mused. to take a similar leap of faith, saying, “Just go! Remember Apart from getting the team is behind you. Keep accustomed to a different an open mind, work hard

working environment, Gwo and have fun!” keppelite Yinn also had to overcome day-to-day challenges of living in a foreign land. “Coming to a new country, it is expected that things will be different from back home. Gwo Yinn (middle, with blue bag) enjoys the experiences that come with working overseas, such as bonding with his colleagues at the 2,500-year-old Shwedagon Pagoda While the infrastructure

Keppelite I Issue 3 / 2018 46 Nurturing Communities Communities

Raising eco-consciousness

As a responsible corporate citizen, Keppel aims to raise environmental awareness among its stakeholders.

RUNNING FOR A CAUSE On 20 May 2018, Sino- Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) and Sino-Singapore Tianjin Eco-City Administrative Committee jointly organised the inaugural Eco Run to celebrate the Sino-Singapore Tianjin Eco City’s (Eco-City) 10th anniversary, while promoting the Eco-City’s green features. Over 1,000 runners participated in the Eco Run in celebration of the Eco-City’s 10th anniversary Over 1,000 participants from the Eco-City as well as from of Singapore and China. As aimed to promote eco- TAKING CLIMATE ACTION the Beijing-Tianjin-Hebei the hardware in the Eco-City friendly practices among For the fifth year running, region and Singapore joined is continually developed, we shoppers and tenants by Keppel Land and Keppel either the 10 km competitive are also actively enhancing encouraging them to skip REIT Management have race or the 5 km fun run. its software and ‘heartware’. using straws or switch to collaborated with Ricoh Asia Through this event, we hope reusable alternatives, such Pacific to support Eco Action To mark the Eco-City’s to promote healthy lifestyles as bamboo or paper straws, Day, an annual nationwide transformation from a barren among residents as part of thereby reducing plastic campaign that encourages and saline wasteland to a sustainable development waste. awareness of, and action for, thriving green city, the run and urbanisation.” the environment. was held along the Jing Lake, Mr Huynh Gia Phuc, a former sewage pond that BEATING PLASTIC Chairman of Keppel Land To commemorate 2018 as had been rehabilitated into a POLUTION Vietnam’s Corporate Social the Year of Climate Action, clean lake. Runners marveled In conjunction with World Responsibility Committee, a tree sapling will be planted at the Eco-City’s biodiversity Environment Day 2018 shared, “Keppel Land for every corporate pledge as the race route offered which is themed ‘Beat Plastic adopts a proactive and for climate action received. scenic views of greenery Pollution’, Keppel Land holistic approach towards Close to 200 corporate and clear waters. launched its ‘Plastic Straw sustainability. Through pledges and 500 individual Free’ challenge at Saigon initiatives such as the ‘Plastic pledges from staff, tenants Mr Tay Lim Heng, CEO of Centre retail mall in Vietnam. Straw Free’ challenge, we and visitors were canvassed SSTEC, said, “Over the seek to raise awareness of at the roadshows at Keppel past 10 years, the Eco-City Supported by the World environmental sustainability Land and Keppel REIT’s

has grown to become a Wide Fund for Nature, and encourage our buildings. keppelite vibrant, green city with the the five-day campaign stakeholders to join us on support of the governments from 5 to 10 June 2018 this green journey.”

Keppelite I Issue 3 / 2018 Nurturing Communities 47

Making a difference

Keppel is committed to (Admiralty). The skills- Separately, on 6 June 2018, On 29 June 2018, interns making a difference in the based volunteer initiative volunteers from Keppel from across the Group communities wherever brings together finance Shipyard brought close to organised a robotics it operates through its staff from across the 100 children from Care workshop for children from social programmes and Group to impart financial Corner (Woodlands) on an Care Corner (Toa Payoh). volunteerism efforts both in literacy to beneficiaries excursion to the Singapore Under the guidance of Singapore and abroad. through interactive games, Science Centre. volunteers, the children while promoting family built their very own Dragster ENGAGING YOUNG cohesiveness. “The aim of this visit was race cars that were pitted MINDS to nurture in students an against each other in a Keppel Volunteers continues Daniel Xu, Assistant Manager, interest in various science thrilling race! to promote skills-based Group Control & Accounts, disciplines. The students volunteerism, allowing staff Keppel Corporation, said, were visibly excited as they CARING FOR THE to channel their professional “This experiential learning interacted with the different UNDERPRIVILEGED skills to help the less approach is effective, fun exhibits and asked many Keppel Volunteers across fortunate. and engaging. It was questions on how the various different business units also meaningful to see how mechanisms worked. I’m served in diverse outreach On 9 June 2018, Keppel our sharing of financial glad to see that we have activities, touching the lives Volunteers organised a knowledge could empower accomplished our mission of the less fortunate. financial literacy carnival the beneficiaries in making today!” reflected Leslie for underprivileged families important financial decisions Lim, HR Executive, Keppel supported by Care Corner in their daily lives.” Shipyard. Continues on page 48...

Families supported by Care Corner participated in financial literacy games designed by finance officers from across the Keppel Group

Keppelite I Issue 3 / 2018 Keppelite I Issue 3 / 2018 48 Nurturing Communities

...continued from page 47.

Volunteers from Keppel dementia with meaningful CLEANING UP THE collecting over 100 kg of FELS rallied to care for employment. COAST trash. underprivileged households In conjunction with the by participating in Food from In celebration of Mother’s Day, nationwide ‘Keep Clean, TOUCHING LIVES IN the Heart’s food distribution volunteers from Keppel Sea Singapore!’ campaign, CHINA programme on 24 April Scan visited United Medicare volunteers rallied to clean Keppel Volunteers’ overseas 2018. Centre at Elizabeth Drive on up Singapore’s shores. chapter in China continued 18 May 2018. Volunteers to organise meaningful Separately, on 4 May recreated a shopping mall On 10 May 2018, 30 activities in June, making 2018, volunteers from experience for residents of the volunteers from Keppel a positive impact on Keppel Land delivered nursing home who ‘shopped’ Telecommunications & communities. 50 punnets of lettuce for necessities such as coffee Transportation (Keppel T&T), from the company’s and medicated oil sponsored including the company’s On 21 June 2018, volunteers indoor office farm to by Keppel Sea Scan. senior management, from Keppel Corporation’s the Alzheimer’s Disease collected a total of 112 kg of China Office visited Association (ADA). The On 11 June 2018, volunteers trash along the beach at West underprivileged school lettuce was subsequently from Keppel Offshore & Coast Park. Separately, on 28 children in Mabian County, used in ADAcafé at the Marine also engaged children June 2018, 16 volunteers Sichuan Province, China. Agape Village, which is run from FosterConnections@ from Marina at Keppel Bay by ADA to provide people MCYC in a terrarium-making sailed to Lazarus Island It was an enriching time in the early stages of workshop. and trawled the coastline, for the children, who participated enthusiastically in the interactive story- telling session and games organised by the volunteers. They were also treated to snacks from Singapore, like bak kwa and pineapple tarts, brought by the volunteers from Singapore who joined the outreach activity.

Ricky Ling, Assistant HR Manager at Keppel T&T, shared, “While the journey to this mountainous region was long and arduous, seeing the happy smiles of the children made it all worthwhile. This overseas volunteering experience was definitely eye-opening and meaningful.”

Separately, volunteers from Keppel Nantong Shipyard visited an old folk’s home on 15 June 2018 to celebrate the Dragon Boat Festival with the elderly. A new leaf of life – punnets of lettuce from Keppel Land’s indoor office farm were used by ADAcafé at Agape Village, run by ADA

Keppelite I Issue 3 / 2018 Nurturing Communities 49

To celebrate the occasion, they made rice dumplings, which involved wrapping rice, meat, dates and other ingredients in bamboo leaf packets.

The volunteers, who started with little experience in wrapping dumplings, slowly picked up speed under the patient guidance of the elderly. Together, they made 100 dumplings in just two hours!

In May 2018, 12 volunteers from Keppel Land China’s office in Shanghai participated in a blood donation drive. Led by Mr Ben Lee, President of Keppel Land China, volunteers donated a total Volunteers organised interactive and enriching activities for underprivileged school children in Mabian County in Sichuan Province, China of 2,800 milliliters of blood. keppelite

Patron of the arts

Keppel supports 11th consecutive highest recognition of significantly in the local advancement of the Distinguished Patron of the arts sponsorship, and arts scene. arts in Singapore. Over Arts Award on 4 July 2018. acknowledges organisations the years, Keppel has This award is Singapore’s and individuals who invest provided numerous platforms to showcase artistic talents and expose young Singaporeans to the arts. This includes key sponsorships such as the Keppel Centre for Art Education and Keppel Nights.

In recognition of the Group’s contributions, the National Arts Council

bestowed Keppel Mr Ho Tong Yen (right), GM of Group Corporate Communications, Keppel Corporation, receiving the Distinguished Patron of the Arts Award Corporation with its on behalf of Keppel from Ms Grace Fu (left), Minister for Culture, Community and Youth. Photo credit: National Arts Council

Keppelite I Issue 3 / 2018 50 Getting To Know You

Spotlight on: Chris Ong Keppelite speaks to Mr Chris Ong, CEO of Keppel Offshore & Marine (Keppel O&M) to gain insights into his outlook on the business, as well as his views on work, life and the world.

Q: How would you and mammoth project but infrastructure. Thankfully, my since it was established in describe your journey in there was tremendous seniors imparted invaluable 2002. We have increased Keppel? satisfaction when it was knowledge and generously our product range and Exciting, intense and completed. I felt an even shared their experiences capabilities significantly, and fulfilling. I had to learn a greater sense of achievement to ease my learning curve. are continually proposing lot very quickly. Keppel is an when the rig was utilised in Looking back, it was indeed solutions for the market. organisation that provides the Deepwater Horizon oil a project that helped set the you with opportunities spill recovery. stage for my engineering We have also adopted a to stretch and grow career. more broad-based and professionally, regardless of Q: Can you share your bottom-up approach, which seniority and experience. experiences on what it On my next assignment, I I think is a result of the means to be a Keppelite? flew to Paris for a technical various campaigns to build I first joined Keppel FELS’ I think the Keppel core discussion with a potential a culture of ownership, Commissioning department values, such as Can Do!, customer on a project for whether in innovation, in 1999. In my second Customer Focus, and Agility Azerbaijan, the TPG500 quality or safety. Just like year with the company, I & Innovation, are very apt. jackup rig. I remember our safety journey, we have travelled with two other When I was tasked with crossing paths with one instilled in our people both colleagues to our Keppel the project in the US, I had of our competitors who a proactive and forward- AmFELS yard in the US to to absorb a lot in a short was exiting the contract, looking mindset. commission the Q4000 period of time and adapt and they wished our team semisubmersible (semi) to working in a different a much-needed “Good The fundamentals of our rig. This was a challenging culture, with different Luck”. Despite knowing execution excellence, the difficulties that came namely delivering safely, on with the project, our team time and on budget, remain remain undeterred. Armed unchanged. But we have with our knowledge and taken it a step further to Can Do! spirit, we were able anticipate what the market to convince them that we needs in order to bring could execute the project the company to the next well. Even though our level. team was relatively smaller compared to those of our Q: Can you share with us competitors, we completed the challenges you have the project successfully, and to deal with as CEO? they continued engaging us Over the last year, I have been for additional work. focusing on ensuring that our business is sustainable, Q: How has Keppel O&M that our operations are grown over the years? streamlined and at the same Mr Chris Ong (middle, in blue shirt), CEO of Keppel O&M, with Keppel Volunteers helping Keppel O&M has grown time, ready for the market seniors from Thye Hua Kwan make Hari Raya decorations exponentially in many areas recovery.

Keppelite I Issue 3 / 2018 51

Economic sustainability fundamental change. In Q: On a more personal Q: What is your favourite also means diversifying terms of products, the sky note, how do you book / reading material? into adjacent areas and is the limit. manage work-life I grew up reading military staying relevant to Keppel balance as a father to books by authors such as Group as a whole. Keppel Q: Where do you see two children? Tom Clancy but now I am is committed to providing Keppel O&M in the I think in today’s world, reading more board papers solutions for sustainable long-term future? it is more about work-life instead (laughs)! Actually, urbanisation. In line with Business and service models harmonisation. We have I find myself reading more this goal, Keppel O&M’s will change. We want to be the tools that enable us to autobiographies as it gives innovative energy solutions, able to step into the role multi-task while being in you a different perspective. including our gas strategy, of business developers and one place. Keppel is a task- My favourites include the complement the Group’s help string projects together, oriented organisation so late Mr Lee Kuan Yew’s mission. We are also thereby expanding our there can be busy periods books. exploring opportunities in playing field. The first cut is when work takes priority a wide variety of markets about asset management. but also times when family Q: What would you say such as renewables and Taking a stake in some of comes first. Having a good to new talent joining floating infrastructure. these projects is not new to team around you is vital so Keppel? us. It is about how we, as that you can balance your Keppel is ideal for those Q: What are some of a group, take a bigger pie commitments, knowing that who seek challenges and the new technologies of the potential recurring there are always capable diversity, because we can that interest you and income. Beyond that, we hands to keep things running offer a variety of different can be applied to are also looking at synergies smoothly. jobs within the Group. As Keppel O&M? across the Keppel Group I illustrated by my own Digitalisation, artificial to provide solutions for Q: What do you do in career path, there are many intelligence and the Internet sustainable urbanisation, your free time? opportunities for growth. of Things are important including providing floating I enjoy swimming. It is I would encourage young not just for improving our infrastructure to serve also an activity that allows Keppelites not to just look products and increasing remote regions which are me to bond with the kids. at the short-term, or at operational efficiency, but developing and therefore Another common activity is the remuneration alone, also for attracting the new would require more energy. watching the Harry Potter but to consider the long- generation of talent with movies on TV as my kids term career path that the the latest technology. Looking over a 10-year are huge fans. I make it a company offers. horizon, I expect that point to have dedicated We must adopt and we will be playing in time with the family, Beyond the tangible adapt technology, or many different aspects whether on vacations or benefits, we also look to risk being disrupted. as a solutions provider even staycations. We don’t motivate our employees by We are developing the in energy generation. need to go far to enjoy encouraging them to venture yard of the future and Keppel O&M will continue ourselves, spending quality into exciting new markets digitalised products such to stay relevant to the time together is the most and challenging them with as autonomous vessels. industry in terms of our important. large-scale projects. This We are talking to an Engineering, Procurement will enable them to increase array of companies in the and Construction strength Q: What is your favourite their skills, further develop digital space, e-commerce, and on top of that, be a food? themselves and step up in and car manufacturers, significant contributor in I like local food, especially their careers. keppelite among others, to discuss terms of various renewable char kway teow. I enjoy how we can apply the solutions. We could also be having late night roti prata latest technology in engaged in deep sea mining or catching up with friends our businesses. Hence, and activities channelled over supper. It is more about our labour workforce around our adjacent having good company than composition will see a capabilities. it is about the food.

Keppelite I Issue 3 / 2018 BackPage 52

A leader in LNG solutions

With an extensive suite of solutions across the gas value chain, Keppel Offshore & Marine (Keppel O&M) is well-positioned to capture opportunities as industry players seek cleaner sources of energy and adopt Liquefied Natural Gas (LNG) as a marine fuel.

SOUTHEAST ASIA’S FIRST LNG BUNKERING VESSEL On 5 June 2018, Keppel Singmarine secured a contract from FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum (Pte) Ltd, to build Southeast Asia’s first

LNG bunkering vessel valued Keppel O&M is building Southeast Asia’s first LNG bunkering vessel, which will provide LNG to global customers who pass through the Port of at approximately $50 million. Singapore

Scheduled for completion Keppel O&M, said, “Keppel In his address, Mr Loh be done by truck-to-ship in 3Q 2020, the dual-fuel O&M is able to harness its said, “Today’s christening operations or by replacing LNG bunkering vessel will expertise in newbuilds and of KST Liberty marks an the empty tanks with have a capacity of 7,500 m3. LNG to provide customised important milestone in replenished ones. FueLNG will receive a grant solutions for clients, and Singapore’s journey to make of up to $3 million as part is in a strong position to LNG bunkering available at Shell will supply the LNG to of the Maritime and Port capture opportunities as our port as early as 2020. KST Liberty while FueLNG Authority of Singapore’s the industry adopts greener I congratulate Keppel O&M will provide LNG bunkering (MPA) LNG Bunkering Pilot solutions.” and Keppel Smit Towage services. The LNG bunkering Programme. for taking the lead, under will be conducted at Jurong SOUTHEAST ASIA’S FIRST MPA’s LNG Bunkering Pilot Port which is able to support The vessel will be built to the DUAL-FUEL TUG Programme, to build and LNG bunkering operations.

MTD 7500U LNG design, a Keppel O&M marked operate Singapore’s first keppelite proprietary design of Keppel another milestone on LNG-fuelled vessel. Such O&M’s ship design and 25 April 2018 when it partnerships bring us closer development arm, Marine held the naming ceremony to our goal of cleaner and Technology Development, for KST Liberty, Southeast more sustainable marine for greener and safer Asia’s first dual-fuel tug. fuels.” bunkering activities within The ceremony was graced the Singapore port. by guest-of-honour, The LNG is carried in Mr Loh Ngai Seng, Permanent containerised, type-C ISO- Mr Abu Bakar, MD (Gas Secretary of Singapore’s certified tanks on the main & Specialised Vessels), Ministry of Transport. deck, and re-fuelling can Printed on recycled paper Printed on recycled

Keppelite I Issue 3 / 2018