a publication of keppel corporation · 2020. 2. 13. · 1 editor's note editor’s note 2020...

MCI (P) 060/01/2020

A Publication of Keppel Corporation

www.kepcorp.com/ekeppelite

ISSUE

012020

Building a sustainable future

Empowering Lives

M1’sTransformation

26 4414

Contents

Editorial TeamAna Luisa Cruz, Ang Lai Lee, Ariel Tee, Elizabeth Widjaja, Emmeline Khoo, Fiona Aw, Frances Teh, Glenda Yang, Grace Chia, Guo Xiao Rong, Hoo Yao Lin, Ivana Chua, Lee Wan Jun, Loh Jing Ting, Nikki Lam, Roy Tan, Tang Yi Bing, Teri Liew, Vanessa Ng, Yolanda Guo

Email: [email protected]: www.kepcorp.com/ekeppelite

Keppelite is a publication of Keppel Corporation, and is published quarterly by the Group Corporate Communications Division. All rights reserved. Permission from the publisher is required for reproduction by any means in whole or in part.

Printed in Singapore by Image Printers Pte Ltd.

Editorial AdvisorHo Tong Yen

Copy EditorsBrian Lee, Han Sufen

EditorSue-Ann Huang

1 Editor’s Note2 Keppel Corporation Financial Results6 Financial highlights 7 In conversation9 Keppel REIT Financial Results10 KeppelPacificOakUSREIT

Financial Results11 Keppel DC REIT Financial Results12 Keppel Infrastructure Trust

Financial Results13 Solutionsforcleanenvironments14 BreakinggroundforSaigonSportsCity16 Trusted partner17 Growing footprint in India

SPECIAL FOCUS

18 What does sustainable urbanisation meantome?

22 NewyearmessagefromtheCEO26 M1’stransformation28 Building a better world29 Strategicacquisitions30 Harnessing renewables31 Qualityinexecution32 Spurringinnovation33 Green loan for Keppel REIT

HSEMATTERS

34 Safety4.0

37 Commitmenttocompliance Strengtheningengagement

inShanghai38 Celebratingcamaraderie39 Crossing borders Employerofchoice40 Competitionheatsup Homeawayfromhome

KEPPELITES AROUND THE WORLD

41 Relishing challenges

GETTING TO KNOW YOU

42Spotlighton:ChuaHsienYang

44 Empoweringpersonswithdisabilities46 Climateaction48 Caringforourcommunity50 Volunteer appreciation51 Seasonofgiving52 PicturesqueEco-City

Coverimage:KeppeldeepensitspresenceinVietnamwiththegroundbreakingofSaigonSportsCity,a64-hectaresitewhichwillbedevelopedbyKeppelLandandKeppelUrbanSolutionsintoasmart,integratedtownshipintheprimeDistrict2ofHoChiMinhCity.

1 EDITOR'S NOTE

Editor’s Note

2020marksthestartofanexcitingnewdecade.ItisalsoaspecialmilestoneforKeppel,asweworktowardsourVision2020,whichtheGrouphadadoptedin2014.

InhisNewYearMessagetoKeppelites,CEOofKeppelCorporationMrLohChinHuaoutlinedthecompany’sprogressoverthepastfewyears,howwearechartingourVision2030,aswellasKeppel’scommitmenttosustainability.WereproducetheCEO’snewyearmessageatpages22to25.

Collaboration across business units enablesKeppelasawholetobemuchmorethanthesumofitsparts.SaigonSportsCityinHoChiMinhCity(coverimage)isthelatestshowcaseofhowKeppel’s business units are collaborating toharnesssynergiesandcreatevalue.KeppelLandandKeppelUrbanSolutionsareworkingonthemaster-planninganddevelopmentofSaigonSportsCity,whosegroundbreakingceremonywasheldon8November2019(pages14and15).

As the Group rallies behind the commonpurposetoprovidesolutionsforsustainableurbanisation,wehearfromKeppelitesonwhatsustainableurbanisationmeanstoeachofthem

(pages18to21).Wealsosharebusinessupdates on how Keppel is providing solutionsforcleanerenvironments(pages28and29)aswellasM1’stransformationfromatelcointoaproviderofconnectivitysolutions(pages26and27).

In our regular feature to help Keppelites gettoknowourseniormanagementbetter,wehearfromMrChuaHsienYang,CEOofKeppelDCREITManagement,onhisprofessionaljourney,hisviewsonthedatacentreindustry,aswellashisinterestsoutsideofwork(pages42and43).

Keppel continues to reach out to communitiestoupliftlivesandmakeapositiveimpact.Thepastfewmonthssaw Keppel contributing to the greening ofLabradorPark,launchinganewcollaborationwithSPDinSingaporetohelppersonswithdisabilitiesimprovetheirjobprospects,aswellasraisingfundstosupportprogrammesforhearing-impairedchildreninChina.WehopethesestorieswillinspiremoreKeppelitestogivetheirtimeandhearttoworthycauses(pages44to51).

EnjoyyourreadofKeppelite.

Keppelite Editor

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Resilient performance Keppel Corporation Financial Results

Keppel’s business units delivered creditable results against a challenging backdrop in 2019. Keppelite reproduces the speech delivered by Mr Loh Chin Hua, CEO of Keppel Corporation, at the Company’s 4Q & FY 2019 results webcast and briefing to media and analysts.

2020isanimportantmilestoneforKeppel.In2014,theGroupadoptedaVision2020toguideourlong-termstrategyandtransformation.Itincludescomprehensivetargetsrelatedtofinancialperformance,people,processesandourbroaderstakeholders.

Overthepastfewyears,wehavemadesignificantprogresstowardsourvision.These include privatising our listed operating entitiestofacilitatebettercapitalallocation,strengtheningourexistingbusinessesaswegrownewengines,establishingKeppelCapitalasaplatformforcapitalrecyclingandtotapthirdpartyfundsforgrowth,aswellasgrowingfrombeingmainlyaBusiness-to-Business(B2B)companyintotheBusiness-to-Consumer(B2C)space.

Wehavealsoactivelypromotedcollaborationamongourbusinessunits and united the Group behind a commonmission.Today,Keppelisaneco-systemofcompaniesprovidingsolutionsforsustainableurbanisation.Weseesustainabilityasbeingcoretoourstrategy,notjustintermsofhowwedealwithenvironmental,socialandgovernance(ESG)issues,butasasourceofbusinessopportunities,aswe channel the Group’s capabilities andresourcestomeettheneedsofsustainabledevelopment.

Financial Performance Against a volatile and challenging 2019 characterisedbyslowingglobalgrowth,tradetensionsandgeopoliticalrisks,Keppelhasperformedcreditably.

ForFY2019,wemadeanetprofitof $707million,withimprovedperformancebyKeppelOffshore&Marine(O&M),KeppelInfrastructureandKeppelCapital.NetprofitfortheGroupwasloweryear-on-year,asKeppelLandhadbenefittedfromafewlumpydivestmentsanden-blocsalesin2018,whichcontributed$584milliontonetprofit.

Significantly,theGroup’searningsin 4Q2019wereupby42%year-on-year,duetostrongerperformancebytheO&M,PropertyandInvestmentsdivisions.

ReturnonEquity(ROE)was6.3%,whileourfreecashoutflowstoodat $653millionin2019,comparedtothecashinflowof$515millionin2018.

Netgearingwaslowerat0.85xasatend-2019,comparedto0.88xasatend-September2019,duemainlytocashinflowsfromoperationsandhighercapitalemployedarisingfromprofitsforthequarter.

The Board of Directors will be proposing afinaldividendof12.0centspershare.Togetherwiththeinterimcashdividendof8.0centspershare,wewillbepayingoutatotalcashdividendof20.0centsper share to shareholders for the whole of2019.Thisrepresentsapayoutratioof51%ofournetprofit.

Multiple Income StreamsWecontinuetofocusonimprovingthequalityofourearnings.Recurringincomehasgrownto$260million,comparedto

$232millionin2018,largelyduetohighercontributionsfromassetmanagement,infrastructure,andtheconsolidationofM1.

Offshore & MarineTheO&Mindustrycontinuestoshowsignsofrecovery.Theutilisationanddayratesforjackupscontinuetoimprove,butitwouldtakesometimeforthesetotranslateintoneworders,giventhecontinuingoversupplyinthemarket.Theoutlookforthefloatersegmentisalsopositive,withactivityanddemandexpectedtoincreasegraduallyinthenextcoupleofyears.

Inthenear-term,wewillcontinuetoactivelyseekopportunitiesintheoilandgasproductionmarketwhereanumberofprojectFIDsareexpectedin2020.Wewill also pursue projects in the growing offshorerenewablessector,aswellasnichesegmentsofthespecialisedvesselmarket.

Onthebackofourincreasedtopline,costmanagementeffortsandlowerimpairmentprovisions,ourO&MDivisionachievedanetprofitof$10million,asignificantimprovementoverthelossof$109millioninFY2018.ThisisthefirsttimeourO&MDivisionhasreturnedtoprofitabilitysinceFY2016.TheoperatingprofitinFY2019was$76millionbeforerevaluations,majorimpairmentsanddivestments(RIDs),morethandoublethe$37millionforFY2018.

Duringtheyear,KeppelO&Mremainedfocusedonexecution,delivering13newbuildandconversionprojects.

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Inaddition,westarted2020withthedeliveryofthefifthoutof11jackuprigsthatwearebuildingforBorrDrilling.

Ourneworderwinsfor2019wereinexcessof$2.0billion,up18%comparedto2018.KeppelO&M’sdiversificationstrategyhasbornefruit,withgasandrenewablesmakingupover60%oftheseneworders.Duringtheyear,wealsosecuredover100scrubberandballastwatertreatmentsystemretrofitprojects,asshipownerssoughttomeettheIMO2020requirementsonthesulphurcontentofmarinefuel,aswellasthestandardssetoutbytheBallastWaterManagementConvention.

Ournetorderbookstoodat$4.4billionasatend-2019.Tomanagetheincreasedworkload,KeppelO&Mhired2,800additionaldirectemployeesoverthecourseof2019,morethanwehadinitiallyanticipated,andweexpecttoincreaseour

headcountbyafurther1,500in2020.WithKeppelO&Mhavingreturnedtoprofitability,our goal for 2020 is to further enhance the performanceofourO&Mbusiness.

PropertyOurPropertyDivisionrecordedanetprofitof$517millionforFY2019.KeppelLand’snetprofitstoodat$527millionforFY2019,44%lowerthanthe$944millionforFY2018,duetofeweren-blocsalesanddivestmentsin2019.Ifweweretoexcludeen-blocsalesandRIDsinbothyears,KeppelLand’snetprofitinFY2019wasabout$260million,animprovementoverthe$236millioninFY2018.

Tofurtherexpandourpropertybusiness,wecompletednineacquisitionstotallingabout$0.5billionin2019,acrossChina,VietnamandIndia.WehavealsobrokengroundforSaigonSportsCity,whichKeppelLandandKeppelUrbanSolutionsarecollaboratingto

developintoasmart,integratedtownshipinDistrict2ofHoChiMinhCity.

OurpropertybusinessisdiversifiedacrossseveralkeyAsiancountries,withChinaandVietnamcontributing36%and31%ofKeppelLand’snetearningsrespectively.Vietnam,inparticular,hasbeenagrowingmarketfortheGroup,withearningsgrowingsteadily,andcontributing$165milliontoKeppelLand’snetprofitinFY2019.

In2019,wesoldabout5,150homes,16%morethanthe4,440homessoldin2018,achieving a total sales value of about $3.2billion.DespitetheslowdownintheChineseeconomy,wecontinuetoseehealthydemandinthecitieswhereweoperate.HomesalesinChinagrewbymorethan50%year-on-yearto3,400units,withatotalvalueofabout $2.2billion,comparedto$1.0billion

KeppelO&Msecured~$720millionworthofoffshorewindcontractsfromTennetandØrstedin2019.

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in2018.SalesinVietnamhavealsoremainedhealthyat950units.

HomesaleshaveincreasedinSingapore,with250unitssoldin2019comparedto160unitsin2018.WehaveseenanincreaseinunitssoldatKeppelBay,followingtheannouncementsonthedevelopmentoftheGreaterSouthernWaterfront.Weplantolaunch19Nassimlaterthisyear,andwillalsoconsiderlaunchingPlot4atKeppelBay,takingintoaccountmarketconditions.

Ourtotalresidentiallandbankstandsatabout45,200homes,withsome17,400homesinkeyAsiancitieswhichwillbelaunch-readyfrom2020to2022.Inourcommercialportfolio,KeppelLandhasabout1.6millionsquaremetresofgrossfloorarea,ofwhichabouthalfisunderdevelopment.

Weexpecttorecogniserevenuefromthesaleofsome8,720overseashomesworthatotalofabout$3.9billion,uponcompletionandhandoverfrom2020to2022.

Lookingahead,wewillseektoturnourassets faster in order to achieve the targetROEof12%forKeppelLand.

Infrastructure OurInfrastructureDivisionachievedstablenetprofitat$169millionfor FY2019.KeppelInfrastructurecontinuedtogrowasasteadycontributortotheGroup’searnings,withnetprofitimprovingfrom$117millionforFY2018to $133millionforFY2019,duetoimprovedperformancefromEnergyInfrastructureandEnvironmentalInfrastructure.

Keppel Marina East Desalination Plant isclosetocompletionandiscurrentlyundergoingtestingandcommissioning.Itisscheduledtocommenceoperationsin1H2020,andwillstartcontributingtotheearningsofInfrastructureServices.The Hong Kong Integrated Waste ManagementFacilityisprogressingwellandhasbeenmakingmeaningfulcontributionstoourbottomline.

In2019,KeppelInfrastructureenterednewmarketsandinvestedintechnologieswhichexpandedourcapabilitiesasa solutions provider for sustainable urbanisation.WeinvestedintheMETGroup,anintegratedEuropeanenergycompany,andZerowasteAsia,whichprovidesenvironmentalsolutionsinindustrialwasteandwastewatertreatment.

ThedatacentrebusinessisanimportantgrowthengineforKeppel.Earningsfromour data centre business are lower at $67millioninFY2019comparedto $76millioninFY2018,duemainlytotheabsenceofgainarisingfromthesaleofastakeinKeppelDCREITin2018.

Duringtheyear,AlphaDCFundandKeppelDataCentresdivestedKeppelDCSingapore4(SGP4)toKeppelDCREIT,withSGP4contributing$50millioninrevaluationanddivestmentgains.Wewillcontinuetoearnrecurringincomefromtheoperationandmaintenanceofthedatacentre,aswellasassetmanagementfees.ThisisagoodexampleofhowtheKeppelGroupcreatesvalueandearnsdifferentincomestreamsthroughthelifecyclesoftheassetswebuild,operate,maintainandmanage.

Investments OurInvestmentsDivisionmadeanetprofitof$11million,animprovementoverthe$54millionlosssustainedinFY2018,despiteourshareoflossesinKrisEnergy.

Ourassetmanagementbusinesshasperformedwell.KeppelCapital’snetprofitgrewto$74millioninFY2019,comparedto$62millioninFY2018.ItsAUMhasalso

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1. KeppelLand’sproject,TheInfiniti,Phase 1C of Riviera Point in Ho Chi Min City,was93%soldasatend-2019.

2. KeppelDCSingapore4,whichwasdivestedbyAlpha DC Fund and Keppel Data Centres toKeppelDCREIT,contributed $50 millionrevaluationanddivestmentgainsforFY2019.

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grownby14%from$29billionto$33billionasatend-2019.In2019,KeppelCapitalcompletedabout$8.4billioninacquisitionsanddivestments,andraisedequityanddebtof$9.5billion.

2019alsosawKeppelCapitalexpandingits asset classes with a joint debt mezzanineplatformtogetherwithPierfrontCapital.Followingstronginterestfrominvestors,KeppelCapitalwill soon launch a new Keppel Asia InfrastructureFundtoseizeopportunitiesinthefast-growingenergyandsustainableinfrastructuresectors.

AmajormilestonelastyearwastheprivatisationofM1,whichcontributedatotalof$153milliontotheGroup’searningsforFY2019,includingare-measurementgainfromthepreviouslyheldinterestinM1andaftertakingintoaccountchargesrelatedtotheacquisition.

WearedrivingM1’stransformationtoenhanceitscompetitivenessandcontributionstotheGroup.Duringtheyear,despiteachallengingcompetitivelandscape,M1grewitspost-paidcustomerbasebyabout11%toabout1.535million,comparedto1.384millionasatend-2018.

Inthepastsixmonths,M1hasbeenmakingsignificantheadwaysin5Gdevelopments,includingembarkingon5GresearchandtrialswithuniversitiesinSingapore,andworkingwithSingaporegovernmentagenciesandotherpartnerstoco-developuse cases to deliver the full potential of 5G technology.Earliertoday,weannouncedthatM1andStarHubhavesignedanexclusiveagreementtocooperateandsubmitajointbidfora5Glicence.

OverinChina,theSino-SingaporeTianjinEco-Citycontinuestogrowsteadily.Ourjointventuremasterdeveloper,SSTEC,continuestoactivelydrivethecity’sdevelopment,includingsellingtwolandplotsforaboutRMB1.5billionin2019.ThisreflectsthecontinuingdemandforhomesintheEco-City,whereover4,000homesweresoldin2019.

ConclusionAswestartanewdecade,wehavealsobegunplanningourgrowthtrajectoryto2030.Inthefirsthalfof2019,wegatheredagroupofyoungerKeppelbusiness leaders to paint their visions for thecompanyin2030.Manyinterestingideashavebeensurfaced,whichwewilltakeonboardaswechartthecompany’sVision2030,withinterimtargetsfor2025.

More will be shared on our Vision 2030laterthisyear,butitisquiteclearthat we see Keppel growing as one integrated business providing solutions forsustainableurbanisation.Throughourintegratedbusinessmodel,wewillseektocreatevalueacrosstheGroup,andimproveboththemagnitudeandqualityofourearnings,whileenhancingreturnsthoughactivecapitalrecycling.We will also endeavor to narrow the gap between our share price and the value ofourunderlyingbusinessesbyfurther

deepening collaboration and tapping the synergiesoftheGroup.

We will further strengthen our commitmenttosustainabilityandcombatingclimatechange,includingintroducing an internal carbon price in theevaluationofallmajorinvestmentdecisionsandenhancingourclimateriskassessment.

LastOctober,Temasekannouncedavoluntarypre-conditionalpartialoffertoacquireanadditional30.55%ofsharesinKeppelCorporation.Ifsuccessful,thepartialofferwillresultinTemasekandtheofferorowninganaggregate51%ofKeppel.Weareunabletocommentonthepre-conditionalpartialoffer,butweholdtheviewthatthereislong-termvalueinKeppel’sbusinesses,aviewwhichTemasekshares.Wewill,asalways,workhardtodelivervaluetoallourshareholders.

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Financial highlights Keppel Corporation Financial Results

KeppeliteKeppelite reproduces excerpts of the presentation by Mr Chan Hon Chew, CFO of Keppel Corporation, on the Company’s financial performance at the 4Q & FY 2019 results briefing to media and analysts.

4Q 2019 financial highlightsIn4Q2019,theGrouprecordedanetprofitof$192million,whichwas42%higherthanthesamequarterin2018.

TheGroup’srevenueforthefourthquarterwas31%or$521millionhigherthanthesamequarterintheprecedingyear.Alldivisions,exceptthePropertyDivision,registeredhigherrevenuesduringthequarter.

Operatingprofitimprovedby$206million,largelyduetolowerimpairmentprovisions,higherfairvaluegainsoninvestmentproperties,andconsolidationofM1’sresults.

Profitbeforetaxat$238million,increasedbyasmallerextentascomparedtotheincreaseforoperatingprofit,duemainlytolowershareofprofitsfromassociatedcompanies.

Aftertaxandnon-controllinginterests,netprofitwas42%or$57millionhigherat

$192million,translatingtoearningspershareof10.5cents.

FY 2019 financial highlightsComparedtoFY2018,netprofitforFY2019was25%lowerat$707million.

Consequently,ReturnonEquity(ROE)decreasedto6.3%.

Duringtheyear,theGroupearnedatotalrevenueofabout$7.6billion,anincreaseof27%or$1.6billioncomparedto2018.All divisions registered higher revenues during2019,exceptforamarginaldecreaseinthePropertyDivision.

Despitehigherrevenues,operatingprofitat$877millionwas17%or$178millionlowerthanintheprecedingyear.Thiswasduemainlytolowergainsfromen-blocsalesofdevelopmentprojectsandtheabsenceofgainfromdivestmentof

BeijingAetherascomparedto2018,partiallyoffsetbyfairvaluegainfromthere-measurementofpreviouslyheldinterestinM1arisingfromtheacquisitionin2019.

FreecashoutflowforFY2019was $653millionascomparedtoaninflowof$515millionin2018mainlyduetohigherworkingcapitalrequirementswiththeconstructionprogressofOffshore&Marine’smajorprojects,andKeppelLand’sadditionalpropertydevelopmentandlandacquisitioncosts,aswellaslowerproceedsfromen-blocsales.

Netgearingincreasedfrom0.48xattheendof2018to0.85xattheendof2019.

Theproposedfinaldividendtoshareholders for 2019 will be 12.0centspershare.Includingtheinterimdividendpaid,thetotaldistributionfor2019willbe20.0centspershare.

*AnagendadecisiononaclarificationinrelationtocapitalisationofborrowingcostsbypropertydeveloperunderIAS23BorrowingCostswasfinalisedbytheInternationalFinancialReportingStandardsInterpretationsCommitteein2019.AsthefinancialreportingframeworkappliedbytheGroupisequivalenttoInternationalFinancialReportingStandards,theagendadecisionhasrelevantimpacttotheGroup’sPropertyDivision.Consequently,2018financialfigureshavebeenrestated.

$m 4Q 2019 4Q 2018* % Change

Revenue 2,198 1,677 31

OperatingProfit 212 6 >500

ProfitBeforeTax 238 165 44

NetProfit 192 135 42

EPS(cents) 10.5 7.5 40

4Q 2019 financial highlights

$m FY 2019 FY 2018* % Change

Revenue 7,580 5,965 27

OperatingProfit 877 1,055 (17)

ProfitBeforeTax 954 1,245 (23)

NetProfit 707 948 (25)

EPS(cents) 38.9 52.3 (26)

FY 2019 financial highlights

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In conversation Keppel Corporation Financial Results

KeppeliteKeppelite shares highlights of management’s responses to questions from the media and investment community at the Company’s 4Q & FY 2019 results briefing.

Q: Keppel O&M plans to increase its headcount by another 1,500 in 2020. Is this based on the work requirements of your current orderbook, or in anticipation of new contracts that you might secure?

LCH: The planned increase in workforceisduetotheanticipatedincreaseinworkload.Youcanseethatwehavebeensteadilybuildingupournetorderbook.Weexpectthatinthenextfewyears,wewillbeexecutingthenetorderbook.

Thisisbasedontheworkloadthatwecurrentlyhave.Wehavehighhopes.Wehope that there will be even stronger ordersthisyear.KeppelO&Misnowworkingonquiteanumberofenquiries.

Q: The O&M Division made a loss in 4Q 2019. What drove the losses? Are you still confident of a sustained recovery, given the weaker orders in 4Q 2019?

CHC: The loss for 4Q 2019 was because of the share of losses in associate companies,inparticular,Floatelhadtodoanimpairmentexerciseonitsvessels.Asaresult,KeppelO&Mhadtotakeitsshareoftheimpairmentlosses.TheunderlyingbusinessofKeppelO&Mattheoperatinglevelisprofitable.

CO: Forthewholeof2019,theamountoforderwinswasslightlyabove $2billion,whichis18%higherthanthepreviousyear.

Althoughtheoffshore&marinemarketisstillchallenged,ourdiversificationhasgotusawiderportfolioofprojects.Wewillcontinuetochasevalue-addprojects in 2020 and continue on the growthtrajectory.

Q: Are O&M tenders and enquiries stronger this year compared to last year?

CO: What we can see is that there is a strongerpipelineofenquiriescomparedtolastyearortwoyearsback.Butitisalsosectordependent.ItdependsonFinalInvestmentDecisions(FID)timinganddifferentprojectscomingonline,butweareactivelyengagedinallofthem.

Q: The Property Division’s ROE at ~6.5% in 2019 is below its target of 12%. How will you turn your assets faster moving forward?

TSY: Firstofall,the12%targetisoveraperiodoftime,andnotmeasuredinasingleyear.Wehavequiteasizeablelandbankthatwebuiltupovertheyears–alandbankof~45,000homesandalsosomecommercialspace.

Wewillbeactivelyactivatingthelandbankandcommercialspacetogeneratereturns.Ofcourse,thiswillalsobedependentonmarketconditions.Sometimes,weneednotwaitfordevelopment.Byen-blocsales,aswehavedoneinthepast,wehavemanagedtogeneratesignificantcontributions.

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LCH:AsSweeYiowhassaid,thisisamediumtolongtermtarget.Wehavequitealotofassetsinourpropertybook.Wejusthavetoturntheseassetsfaster.Sellingthroughen-blocsalesisjustanotherwayofachievingasale.Wedonotneedtodevelopeverythingourselves.

Wearestillverymuchguidedbythe12%targetforthePropertyDivision,whichwebelievecanbemet.

Q: Do you expect infrastructure earnings to be stable even after the Keppel Marina East Desalination Plant (KMEDP) is completed?

LCH: TheperformanceofKeppelInfrastructurehasbeenstrongerthisyear(2019)comparedtolastyear(2018).WhiletheconstructionforKMEDPiscomingtoanend,wewillhaveoperationsandmaintenancefees.FortheHongKongproject,wearejuststartingtorecognisethat.

OTG:Idon’tthinkweareexpectingadrop.Weareveryoptimisticaboutourprospectsfor2020.

Q: Can you share the timeline, target size and seed assets for the Keppel Asia Infrastructure Fund?

CT: For the Keppel Asia Infrastructure Fund,wearelookingtolaunchatUS$1billionintermsoftargetequitysize.Thiswillprobablyattractalotofqualityinstitutionalinvestors,especiallythesovereignwealthfunds,because the first seed asset that we arelookingtoputintothefundwouldbeProjectGimi.

LeveragingthestrengthoftheKeppelGroupandKeppel’scapabilities,weare able to provide a good pipeline of dealflowprojectsforthisfund.Intermsoftimeline,wewillbeannouncingthefirstclosingquitesoon.

Keppel senior managementengagedmediaandanalystsatthe4Q&FY2019resultsbriefing.

LCH – Mr Loh Chin Hua, CEO of Keppel Corporation

CHC – Mr Chan Hon Chew, CFO of Keppel Corporation

OTG – Dr Ong Tiong Guan, CEO of Keppel Infrastructure

CT – Ms Christina Tan, CEO of Keppel Capital

CO – Mr Chris Ong, CEO of Keppel Offshore & Marine

TSY – Mr Tan Swee Yiow, CEO of Keppel Land

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Changes in Keppel REIT Management’s Board

KeppelREITManagementhasappointedMrIanMackieasanindependentnon-executivedirector.Hisappointmenttookeffectfrom5December2019.MrMackie,63,isChairmanoftheUrbanLandInstitute(ULI)Australia.HealsositsontheBoardoftheULIAsiaPacificFoundationandhasbeenaULIGlobalGoverningTrusteesinceJuly2019.

MrMackiehasmorethan40yearsofexperienceinrealestateinvestmentsandfundsmanagementinAsiaPacific.

HewaspreviouslytheInternationalDirectorandAsiaPacificHeadofStrategicPartnershipsatLaSalleInvestmentManagement(Australia)fromApril2015toDecember2018,and International Director and Head of PrivateEquityandStrategicPartnershipsatLaSalleInvestmentManagementAsiafromJanuary2000toApril2015.HeretiredfromLaSalleInvestmentManagementinDecember2018.

Separately,MrsPennyGoh,ChairmanofKeppelREITManagement,hasbeen

re-designatedasnon-independentnon-executiveBoardChairmanofKeppelREITManagementwitheffectfrom1January2020.ThisfollowsMrsGoh’sappointmentto Keppel Corporation’s Board of Directors whichtookeffectfrom2January2020.MrMackiewillconcurrentlyreplaceherastheChairmanoftheNominatingandRemunerationCommittee.

Followingtheabovementionedchanges,theBoardofKeppelREITManagementcomprisessevendirectors,ofwhomfourareindependentdirectors.

Steady performance Keppel REIT Financial Results

Keppel REIT has achieved distributable incomeof$47.1millionfor4Q2019,2.1%abovethesameperiodin2018.TotaldistributableincomeforFY2019is$189.3million,whichiscomparableto$189.0millionforFY2018.

Notwithstanding the absence of rental supportandlowerincomecontributionfollowingthetwodivestments-the20%stakeinOceanFinancialCentreinDecember2018andBugisJunctionTowersinNovember2019-distributableincomewasmaintainedyear-on-yearduemainlytotheacquisitionofTTowerinMay2019,higheraverageportfoliorentalsandcapitalgainsdistribution,aswellaslowerborrowingcosts.

DPUforFY2019is5.58cents,whichtranslatestoadistributionyieldof4.5%

basedonthemarketclosingpriceof$1.24perUnitasat31December2019.

All-ininterestratewasloweredto2.77%perannumforFY2019,whileaggregateleverage and interest coverage ratio were 35.8%and3.8times,respectively.Weightedaveragetermtomaturitywas3.4years.

Asat31December2019,portfoliocommittedoccupancywashighat99.1%.Theportfolioandtop10tenants’weightedaverageleaseexpiryremainedlongatapproximately4.9yearsand7.0yearsrespectively.

Aspartofitsportfoliooptimisationstrategy,theManagerdeployed$292.0millionintotheacquisitionofTTowerinSeoul,SouthKorea,inMay2019,followingthedivestmentofa20%stakeinOcean

FinancialCentreinDecember2018.TTowerisafreeholdGradeACBDofficebuildingwhichhasaninitialNPIyieldof4.7%andcomplementsKeppelREIT’sexistingSingapore-centricportfolio.

ThedivestmentofBugisJunctionTowerswascompletedforasalepriceof$547.7millionataNPIyieldof3.0%.Approximately$378.4millionofcapitalgainswererealisedfromthedivestment.ThedivestmentproceedsenabletheManagertocontinueitsDPU-accretiveUnitbuy-backprogrammeandparedowndebt,whileseekinghigheryieldinggrowthopportunities.TheManagerwillalsoworktoenhancethestabilityofdistributiontoUnitholderswhilecontinuingwithitsportfoliooptimisationinitiativesandproactiveeffortstomitigateoccupancyvoids.

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Strong performance Keppel Pacific Oak US REIT Financial Results

KeppelPacificOakUSREIT(KORE)achieveddistributableincome(DI)ofUS$50.8millionforFY2019,31.4%higherthantheDIforFY2018,andexceedingtheIPOforecastforthesameperiodby26.3%.DIfor4Q2019wasUS$13.6million,whichalsoexceededDIfor4Q2018,andtheIPOforecastby32.8%and35.5%,respectively.

Thestrongeryear-on-yearperformanceforFY2019wasdrivenmainlybypositiverentalreversionof14.3%forthewholeportfolio,especiallyfromthetechfocusedmarketsofSeattleandAustin;full-yearcontributionsfromTheWestparkPortfolio,whichwasacquiredinDecember2018;aswellasthetwoacquisitionsinJanuaryandNovember2019–MaitlandPromenadeIandOneTwentyFive.

DistributionperUnit(DPU)forFY2019was6.01UScents,31.2%abovethe

adjustedDPUforFY2018and26.0%abovetheIPOforecastadjustedDPU.Thistranslatedtoadistributionyieldof7.7%basedonthemarketclosingpriceofUS$0.780perUnitasatthelasttradingdayon31December2019.

The Manager’s proactive leasing strategyyieldedstrongoutcomeswithapproximately836,000sfleasedforthewholeof2019.KORE’sportfoliocommittedoccupancywas93.6%asatend-2019.

In2019,KOREhadpositiveportfoliorentalreversionof14.3%asaresultofsustainedrentincreases.Theseweredrivensignificantlybypositiveofficedemandandexpansionofitstenantsatitsbuildingsandbusinesscampusesinthefast-growingtechhubsofSeattleandAustin.Asat31December2019,over36%oftenantswereinthekeygrowthsectorsoftechnologyandhealthcare.

Weightedaverageleaseexpirybycashrentalincome(CRI)forKORE’sportfoliowas4.2years.Tenantconcentrationriskremainslowwiththetop10tenantsaccountingforonly19.4%ofCRI.

TheweightedaveragetermtomaturityofKORE’sdebtwas2.9yearswithanall-inaveragecostofdebtof3.69%perannumasatend-2019.Aggregateleverageandinterestcoverageratioswere36.9%and4.8times,respectively.

Intermsofmarketoutlook,theUSeconomycontinuedtoexpandatanannualrateof2.1%inthethirdquarterof2019,continuingitslongestexpansiononrecord.Lookingahead,theManagerwillcontinueitsstrategyofpursuingvalueaccretiveacquisitionsinfirstchoicesubmarketsinkeyUSgrowthmarketswith strong visible organic growth opportunitiessupportedbypositiverentalreversionopportunities.

1. TomarkKORE’ssecondanniversarysinceitslistingontheSGXinNovember2017,aswellastocelebrateSGX’s20thanniversary,MrDavidSnyder(thirdfromleft),CEOandCIOoftheManager, MrKennethTan(thirdfromright),DirectoroftheManager,MsAngSockCheng(secondfromright),CFOofKeppelCapital,andMrAndyGwee(secondfromleft),CFOoftheManager,openedtheSGXsecuritiesmarketwithastrikeofthegongattheIPOarenaon 22November2019.MrMatthewSong(firstfromleft),HeadofClientCoverageofSGXandMsGraceChia(firstfromright),HeadofInvestorRelationsofKeppelCapital,witnessedtheceremony.

2. TheacquisitionofKelsterbachDataCentreisexpectedtobecompletedthisyear.TheassetwillbetheREIT’sseconddatacentreinGermany.

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Stable returns Keppel DC REIT Financial Results

Keppel DC REIT has delivered distributableincomeof$31.5millionfor4Q2019,20.4%higherthan4Q2018’s$26.1million.TheincreasewasmainlycontributedbytheacquisitionsofKeppelDCSingapore4andDC1whichwerecompletedin4Q2019.

DistributableincomeforFY2019wasalsohigherat$113.2million,anincreaseof17.8%fromFY2018’s$96.1million,supportedbythenewacquisitionsaswellasfullyearcontributionsfromKeppelDCSingapore5andmaincubesDataCentreinOffenbachamMain,Germany.

Accordingly,KeppelDCREITdeclaredDistributionperUnit(DPU)of7.61centsforFY2019,4.0%higherthanFY2018’s 7.32cents.Basedontheclosingpriceof$2.080onthelasttradingdayof2019,theREIT’sdistributionyieldwas3.66%.

Excludingtheimpactofthepro-ratapreferentialofferinginOctober2019,DPU

forFY2019wouldhavebeenhigher at7.71cents,a5.3%increasefrom FY2018’sDPUof7.32cents.

In2019,theManagercontinuedtogrowtheREIT.TheadditionsofKeppelDCSingapore4andDC1inSingaporeincreasedtheREIT ’sassetsundermanagementtoapproximately$2.6billion,upfrom$2.0billionasatend-2018.

The Manager also announced the acquisitionofKelsterbachDataCentre,amasterleasedassetthatisfullyleasedonatriple-netbasisuntilend-2025.Theacquisitionisexpectedtobecompletedthisyear.

In4Q2019,theManagerenteredintoasupplementarydeedwith1-NetSingaporePte.Ltd.tofitouttheexistingshellandcorespaceatDC1.Whencompletedin 3Q2020,theadditionalfully-fittedspacewillprovidefurtherincometotheREIT.

InJanuary2020,assetenhancementworkshavealsocommencedatKeppelDCSingapore5toincreasethepowercapacityofthedatacentre.Thisisexpectedtobecompletedby2H2020,andinvolvesconverting a large portion of the vacant non-DCspaceinthefacilitytoDCspace.

InAustralia,theconstructionofIntellicentre 3 East Data Centre hascommenced,withcompletionexpectedin4Q2020.InDublin,theassetenhancementworkstoimproveenergyefficiencyatKeppelDCDublin1remainsontrackforcompletionin 1H2020.

Asat31December2019,theREIT’sportfoliooccupancyrateremainedhealthyat94.9%withalongweightedaverageleaseexpiry(WALE)of8.6years.

The Manager believes that the prospectsforthedatacentremarketremainrobust.

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Steady growth Keppel Infrastructure Trust Financial Results

Keppel Infrastructure Fund Management(KIFM),asTrustee-Manager of Keppel Infrastructure Trust (KIT),achievedadistributablecashflow(DCF)of$38.9millionfor4Q2019,bringingDCFforFY2019to $188.7million,thiswas13.7%and33.7%higher than the corresponding periods in2018respectively.ThestrongerperformancewasdrivenmainlybythecontributionfromIxom.

KIFMalsodeclaredDistributionperUnit(DPU)of0.93centsfor4Q2019,bringingDPUforFY2019to3.72cents.Thistranslated to an annualised distribution yieldof6.9%,basedonthemarketclosingpriceperUnitof$0.540asat 31December2019.

Ixom’sperformancewassupportedbycontinuedoperationalexcellence,workingcapitalandcostoptimisation,aswellasproductivityimprovements.CityGasdeliveredsteadygrowth,expandingitsreachofretailandcommercialcustomers

to859,000in2019,a2.0%growthfrom2018.

On27November2019,BasslinkPtyLtdannounceda12-monthextensionofthematuritydateofthefinancingarrangementsinplacefortheBasslinkInterconnectorandthewaiverbythelendingsyndicateofallbreachesandevents of default that had arisen under the financingarrangementsthen.

Currently,IxomandBasslink’soperationsarenotaffectedbythebushfireinAustralia.AllofIxomandBasslink’ssitesarealsonotwithinanyfirewarningzones.Themanagementteamsaremonitoringthebushfireriskcloselyandtherearebusinesscontinuityplansandinsuranceinplaceshouldanysitesbeaffected.

IntheEnergysegment,theKeppelMerlimauCogenplantachievedcontractedavailabilityof96%in2019.AssetsintheWaste&Watersectors

continuedtofulfillallcontractualobligationsforthewholeof2019.

KITcontinuestomonitortheoperationalperformanceoftheSingSpringDesalinationplant,inwhichitownsa70%interest,toensure that the plant’s obligations under the WaterPurchaseAgreementaresatisfactorilydischarged.Operationsremainstable,andtheplanthasfulfilledallcontractualrequirementsasat31December2019.

On31October2019,KITcompletedthedivestmentofits51%stakeinDataCentreOne.ProceedsareexpectedtoberedeployedintoqualityacquisitionsthatwillstrengthenKIT’sportfolio,aswellasforrefinancingpurposesandworkingcapitalneeds.

Infrastructureinvestmentsareexpectedtoremainakeydriverofeconomicgrowth.KIFM will continue to grow the Trust throughacquisitionsthatwillcreategreatervalueforKITandUnitholdersthroughstablerecurringreturnsandsteadylong-termcapitalappreciation.

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Solutions for

Clean environments

KeppelOffshore&Marine(KeppelO&M)hasclinched104scrubberandballastwatertreatmentsystems(BWTS)retrofitordersworthacombinedvalueofabout$160millionin2019.Thisbringsthetotalnumberofretrofitprojectssecured to date to 108 scrubber and 97 BWTSprojects.

WiththeInternationalMaritimeOrganisation’s2020regulationtocapthesulphurcontentofmarinefuelatnomorethan0.5%,andthestandardssetoutbytheBallastWaterManagementConvention,therehasbeenanincrease

indemandfromshipownersforexhaustcleaningscrubbersystemsthatlimitsulphuremissionsandBWTSsolutions.

MrChorHowJat,MD(Conversions&Repairs)ofKeppelO&Msaid,“InstallationofscrubbersandBWTScanbehighlycomplexandtherehasbeenstrongdemandworldwidetomeetregulatorydeadlines.Backedbyextensiveexperienceinconversionandretrofittingwork,Keppel’sabilitytodeliverquick,safe and reliable vessel turnarounds has madeusanattractivechoiceforclientskeentomeettheirtighttimelines.

1. KIT’sstrongerperformancewasdrivenmainlybythe contribution fromIxom,whoseacquisitionwascompletedinFebruary2019.

2. Toexpeditetheretrofitprocess,KeppelO&Mconductsearlycustomerengagementandpreparationworkbefore the vessel arrives,sothatthevessel’stimespentintheshipyardisminimised.

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“WecompletedSingapore’sfirstscrubberinstallationlastyearinunder30daysandwewerealsothefirstshipyardinSingaporetosuccessfullyundertakeaBWTSretrofitprojectbackin2013.”

Toexpeditetheretrofitprocess,Keppelconductsearlycustomerengagementandpreparationwork,includingtheutilisationof3Dscanningtechnology,completionofdetailedengineeringandprefabricationofmodulesbeforethevesselarrives,sothatthevessel’stimespentintheshipyardisminimised.

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Breaking ground for

Saigon Sports City

Keppel deepens its presence in Vietnam with the groundbreaking of Saigon Sports City, a 64-hectare site which will be developed by Keppel Land and Keppel Urban Solutions into a smart, integrated township in the prime District 2 of Ho Chi Minh City (HCMC).

Thegroundbreakingceremonyfor SaigonSportsCitywasheldon 8November2019,andattendedby Guest-of-HonourH.E.NguyenThanhPhong,DeputyPartySecretaryofHCMCandChairmanoftheHCMCPeople’sCommittee;H.E.CatherineWong,Singapore’s

AmbassadortoVietnam;DrLeeBoonYang,ChairmanofKeppelCorporation;MrLohChinHua,CEOofKeppelCorporationandChairmanofKeppelLandandKeppelUrbanSolutions;seniormanagementofKeppelLandandKeppelUrbanSolutions,aswellasover200guests.

Speakingatthegroundbreakingevent, MrLohsaid,“Keppelhasbeenparticipating in and contributing to Vietnam’sgrowthforclosetothreedecades,especiallyinHCMC,wherewehaveaqualityportfolioofresidentialandcommercialdevelopments.The

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1. BreakinggroundforSaigonSportsCitywere(fromlefttoright)MrLinsonLim,President(Vietnam)ofKeppelLand;MrRoyKho,Singapore’sConsul-GeneralinHCMC; MsCatherineWong,Singapore’sAmbassadortoVietnam;DrLeeBoonYang,ChairmanofKeppelCorporation;MrNguyenThanhPhong,DeputyPartySecretaryofHCMCandChairmanofHCMCPeople’sCommittee; MrLohChinHua,CEOofKeppelCorporationandChairmanofKeppelLandandKeppelUrbanSolutions;MrTanSweeYiow,CEOofKeppelLand;andMsCindyLim,MDofKeppelUrbanSolutions.

2. MrTanSweeYiow(firstfromleft),CEOofKeppelLand,presentedacontributionof VND100billion(approximately$5.8million), onbehalfofKeppel,insupportofinfrastructuraldevelopmentinDistrict2ofHCMC.Thecontributionwasreceivedby MrNguyenPhuocHung(secondfromright),ChairmanofDistrict2People’sCommittee,inthepresenceofDrLeeBoonYang,ChairmanofKeppelCorporation(centre),MrNguyenThanhPhong(firstfromright),DeputyPartySecretaryofHCMCandChairmanofHCMCPeople’sCommitteeandMrLohChinHua(secondfromleft),CEOofKeppelCorporationandChairmanofKeppelLandandKeppelUrbanSolutions.

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groundbreakingofSaigonSportsCitymarksanewphaseinKeppel’sengagementofHCMC.LeveragingtheKeppel Group’s capabilities in providing solutionsforsustainableurbanisation,KeppelLandandKeppelUrbanSolutionsarecollaboratingforthemasterplanninganddevelopmentofSaigonSportsCity,whichwillbedevelopedintoavibrant,integrated township and an iconic landmarkinHCMC.”

Whencompleted,SaigonSportsCitywillfeatureabout4,300premiumhomesaswellasVietnam’sone-stopsports,entertainmentandlifestylehub.BiophilicdesignprincipleswillbeadoptedinSaigonSportsCity,includingnaturalcross-ventilationthroughoutthedevelopment,generousspacebetweenbuildingsfornaturallight,acontiguousfitnesscircuit,lushlandscapingwithlocally-sourcedfloraandpicturesque

waterfeatureswithnaturalfiltration,tocreateagreenandbeautifulenvironment.

Keppelwillalsoworkwithbest-in-classlocalandinternationalpartnerstoofferinnovativeurbansolutionsincludingsmartsecurity,smartmobilityandenvironmentalinfrastructuresolutions,amongothers.ThefirstphaseofSaigonSportsCitywillcompriseresidentialandcommercialspacesaswellassportsfacilities.

Attheceremony,MrTanSweeYiow,CEOofKeppelLand,alsopresenteda contribution of VND 100 billion (approximately$5.8million),onbehalfofKeppel,insupportofinfrastructuraldevelopmentinDistrict2ofHCMC.Thecontribution,whichwasreceivedbyMrNguyenPhuocHung,ChairmanofDistrict2People’sCommittee,reflectsKeppel’scommitmenttocontributetothecommunitywhereveritoperates.

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Trusted partner

KeppelOffshore&Marine(KeppelO&M)workscloselywithcustomerstoensureeveryprojectiscompletedtotheirhighestsatisfaction.Inthelastfewmonths,thecompanyextendeditstrackrecordwiththereliabledeliveryofseveralprojects.

MrTanLeongPeng,ED(Newbuilds)ofKeppelO&M,said,“Withourstrongtrackrecordindesign,engineeringandexecution,KeppelO&Miscommittedtoproviding value added solutions for our customers.”

B Class jackup rigsOn12December2019,KeppelO&Mdeliveredthestate-of-the-artKFELSBClassjackuprig,CantarellIII,toawholly-ownedsubsidiaryofGrupoRwithaperfectsafetyrecord.Aspartofthedeal,GrupoRhasenteredintoasaleandleasebackarrangementfortherigwithawholly-ownedsubsidiaryofKeppelO&M.

CantarellIIIwillbeleasedbacktoGrupoRonabareboatcharteratcompetitivedayratesovertenyears,andwillbedeployedtoworkinoffshoreMexicoonacharterwhichwillcommencein1Q2020.

Underthebareboatcharter,GrupoRhastherighttopurchasetherigatpre-agreedpricesduringthetermofthebareboatcharter.Afterthefifthyear,KeppelO&Mmay,atitsdiscretion,puttherigtoGrupoRatapre-agreedprice.

Separatelyon15January2020,KeppelO&MdeliveredanotherKFELSBClassjackuprigtoBorrDrilling.Heimdal,thefifthof11jackuprigsthatKeppelisbuildingforBorrDrilling,wasdeliveredsafely,ontime,andonbudget.

Withamarketshareofaboutaquarterofalljackuprigsdeliveredsince2000,theKFELSBClassistheworkhorseoftheindustryandcontinuestobethepreferredrigsolutionforshallowwaterexploration.

SemisubmersibleOn31December2019,themammothsemisubmersibleOceanOnyxwasredeliveredtoDiamondOffshoreontime,onbudgetandwithzerolosstimeincidents.

IthadundergoneeightmonthsofmajorupgradesatKeppelO&Mwheretheyard’s

workincludedtheengineering,fabricationandinstallationofnewpontoons,columns,bracingsandawingdeck.

TheOceanOnyxwasfirstupgradedin2012byKeppelAmFELS,KeppelO&M’syardintheUS,fromanoldsemisubmersiblerig.DiamondOffshoreisKeppelO&M’slong-standingcustomerandthetwocompanieshavecollaboratedonmorethan12projectssince2005.

Low emission dredgerFurtherextendingitstrackrecordinthenon-oilandgassegment,KeppelO&Mon17December2019delivereditsfourthTrailingSuctionHopperDredger(TSHD)totheJanDeNulGroupsafelyandwithzerolosttimeincidents.Thedeliveryof6000m3Ultra-LowEmissionvessel(ULEv)Sanderusfollowsthedeliveryofthree3500m3TSHDsearlierin2019,allULEvsandtheworld’sfirstEuropeanUnionStageVdredgers.

Upondelivery,SanderussailedimmediatelytoBelgiumformaintenancedredgingworksontheriverScheldtandalongsidethecoast.

1. TheTSHDSanderusisdiesel-electric driven and is able to dredge to amaximumdepthof35m.

2. KeppelLandhas invested US$25millioninSmartworks,aleadingpan-Indiaflexiblespacesolutions provider with a footprint of 23 operational centres across ninecities,cateringtomainlylargeenterprises and high-growthstartups.

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Growing footprint in India

KeppelisexpandingitsfootprintinIndiawithtwonewdeals.

On31October2019,KeppelLandexpandeditspresenceinthesharedworkspacesectorwithaUS$25millioninvestmentinSmartworksCoworkingSpacePvt.Ltd(Smartworks),aleadingpan-IndiaflexiblespacesolutionsproviderwithapresenceinninemajorIndiancities.

Smartworkshas23operationalcentresofferingatotalofabout43,000workstationsspreadover2.3million sf.Itscentrescurrentlycatertoover400organisations,comprisingmainlylargeenterprisesandhigh-growthstartupssuchasAmazonWebServices,MicrosoftCorporationandSamsung.Theworkspacescanberapidlyconfiguredandcustomisedonshortnotice,andareequippedwithcafeterias,gymsandclinicsonsite.Smartworksplanstogrowitsfootprintto20millionsfandprovide

officesolutionsforover200,000workingprofessionalsoverthenextfiveyears.

MrTanSweeYiow,CEOofKeppelLand,said,“Smartworks’innovativebusinessmodel,coupledwithitsstrongknowledgeoftheIndianenterpriseofficesegmentandexecutionabilities,ishighlyscalableandrelevant,particularlyinIndia’sgrowingmarketforcommercialofficespaces.ThisinvestmentallowsKeppelLandtoenteroneoftheworld’sfastest-growingflexibleofficemarkets,openingdoorsforfurthergrowththroughthiscollaboration.

“Therearealsomanyopportunitiesforcross-learningandcollaborationbetweenSmartworksandKeppelLand’ssmartservicedco-officeplatform,KLOUD,whichcurrentlyhasapresenceinSingapore,VietnamandMyanmar.”

Separately,on15December2019,KeppelLand,throughitswholly-

ownedsubsidiary,enteredintoajointventurewithleadingIndiandeveloper,RustomjeeGroup,tojointlydevelopthe51.4-haUrbaniaintegratedtownshiplocatedinThane,amatureandwell-connecteddistrictwithintheMumbaiMetropolitanRegion.KeppelLandandRustomjeeGroupwilljointlydevelopanadditionofabout7,400homesandretailunitswithatotalgrossfloorareaofapproximatelyfivemillionsf.

This is the first of such collaboration betweenaSingaporedeveloperandan Indian developer for a township intheMumbaiMetropolitanRegion,whichisamongIndia’sfastest-growingregions.

KeppelLandwillbeacquiringa49%stakeinthejointventurecompany,KapstoneConstructionsPrivateLimited,ataconsiderationofaboutINR4,091million(approximately$78.2million).

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18 SPECIAL FOCUS 19 SPECIAL FOCUS

What does sustainable urbanisation mean to me?

As cities grow, so do their needs. Urbanisation is one of the most significant development trends facing the world today. Sustainable urban development and management are critical to support these growing populations, confront the growing concerns over climate change, and create resilient and inclusive urban spaces.

What does it mean for a company like Keppel, whose mission is to deliver solutions for sustainable urbanisation? We speak to Keppelites across the Group, working in different roles and projects, on what sustainable urbanisation means to them, and how they see Keppel contributing to building a better world.

“Sustainability is playing an increasingly significant role in business strategy. It can be a catalyst for innovation, as well as open doors to new market opportunities. As our businesses collaborate, leveraging our strengths as a Group to provide solutions for sustainable urbanisation, we can be a force for good and contribute towards building a better world.”

Sebastien Lamy, Director, Group Strategy & Development, Keppel Corporation and MD, Keppel Technology & Innovation

“As the world continues to urbanise, Keppel Offshore & Marine (Keppel O&M) is providing a suite of solutions to help meet the growing demand for energy as well as the energy transition. Beyond our traditional solutions for the oil industry, we have been focusing on LNG solutions which help to propel the transition to cleaner fuels. We are also deepening our presence in renewables to ensure that we stay ahead of the curve as green energy plays an increasing role in the global energy mix.”

Mr Chris Ong, CEO,Keppel Offshore & Marine

1. As demand for cleaner sources of energy such as Liquefied Natural Gas (LNG) continues to rise, the successful deployment of the world’s first converted Floating LNG vessel, Hilli Episeyo (pictured), to offshore Cameroon puts Keppel O&M ahead of the curve as a leading provider of floating liquefaction solutions.

2. The Keppel Marina East Desalination Plant in Singapore (pictured) will bolster the country’s water supply resilience.

“We strive to add value to energy and environmental infrastructure for better, safer and healthier lives.Our strengths are our people, and our depth of knowledge and expertise in engineering and technology development. In tapping on these strengths, and through our business model and execution excellence, we are able to deliver value to our customers and stakeholders.”

Dr Ong Tiong Guan, CEO, Keppel Infrastructure

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20 SPECIAL FOCUS 21 SPECIAL FOCUS

“We implement projects in the built environment in a sustainable way that does not destroy or cause negative impacts to the environment as we implement the projects. Any business we do is for the people and contributes to urbanisation and the way people live, work and play.”

Goh York Lin, President (Indonesia), Keppel Land

“Urbanisation and the expansion of cities result in space constraints, so we need to replace traditional landfills and treat more waste with less space in a responsible way. We support cities in urbanising sustainably by providing solutions for their waste and water needs.”

Jackson Goh, GM (Environmental Infrastructure), Keppel Infrastructure

“It means being a trusted partner for investors, and having a strong fiduciary duty to generate long-term and sustainable returns for the retail and institutional investors who put their money with us. For the assets we manage, we also look at the carbon footprint, and how to reduce water consumption and electricity to help reduce operating costs. Such measures improve returns on investments.”

Christina Tan, CEO, Keppel Capital

“Keppel has long been providing solutions for sustainable urbanisation, whether it is meeting energy needs, treating water or building sustainable communities. The Sino-Singapore Tianjin Eco-City is a prime example of how Keppel brings together its different capabilities to develop a model for sustainable city development. Sustainable urbanisation is thus not a buzzword for us, but something that countless Keppelites are working on every day.”

Ho Tong Yen, Director, Group Corporate Communications, Keppel Corporation

“Keppel O&M’s conversion solutions, which transform LNG carriers into regasification or liquefaction units, are examples of how we provide communities with cost-effective solutions to harvest cleaner fuels, thus allowing them to grow more sustainably.”

Brandon Chia, Engineer, Keppel O&M Conversions & Repairs Division

“An interesting aspect of my role involves tackling land scarcity and energy efficiency in highly urbanised cities like Singapore. My team is constantly exploring new technology and alternatives to innovate and optimise our data centres to achieve higher efficiency.”

Ooi Kai Yong, Senior Engineer, Keppel Data Centres

“We consider environmental factors during the planning, design and operation of our property developments, as well as during their operational phases. We have also been collaborating with various partners to incorporate new and emerging green technologies to achieve even higher energy efficiency. Recently, Keppel Bay Tower became Singapore’s first commercial development to be fully powered by renewable energy. Through these efforts, I believe we truly live up to being a leading green developer, contributing to sustainable urbanisation.”

Wong Ee Ven, Senior Manager, Operational Excellence, Keppel Land

Keppel’s diverse capabilities in energy, property, infrastructure and connectivity are brought together in the Sino-Singapore Tianjin Eco-City to create a highly liveable, smart and sustainable community.

“One of the most fulfilling aspects of my job is learning about different cities as well as the needs and aspirations of its people, and incorporating these insights in developing urban solutions. It is heartening to know that the projects I work on contribute to the creation of highly liveable, smart and sustainable communities.”

Lee Ai Ling, Senior Manager, Keppel Urban Solutions

22 MESSAGE FROM THE CEO

Dear Keppelites

Happynewyear!Thereisaniconicringtotheyear2020-thestartofanewdecade,anewera.Aroundtheworld,manygovernmentsandorganisationshavesetgoalstobeachievedby2020.

In2014,wealsoadoptedanambitiousVision2020forKeppel,tofocusthe

company’sstrategyandtransformation.Itincludescomprehensivetargetsrelatedtofinancialperformance,people,processesandourbroaderstakeholders.

OurgoalistomakeKeppelamoreresilient,sustainableandpurposefulcompany,onewhichcanoutlastallofus.

Realising our vision Overthepastfewyears,despiteachallengingmacro-environment,wehavemadesignificantprogresstowardsourvision.

Wehaveprivatisedouroperatingentities,startingwithKeppelLand,followedbyKeppelTelecommunications&TransportationandM1,thusfacilitatingbettercapitalallocationandinter-

New Year Message from the CEO

MrLohChinHua, CEOofKeppelCorporation

In his new year message to Keppelites around the world, Mr Loh Chin Hua, CEO of Keppel Corporation, highlighted the significant progress that the company had made in its Vision 2020, commitment to sustainability, as well as promotion of collaboration and harnessing of synergies across the Group.


Moving ahead as OneKeppel

Witheffectfrom1March2020,thelogosofKeppel’sBUswilladoptaconsistentredwordmarktoreflectourcommonpurposeaswemoveaheadasOneKeppel.

businessunit(BU)collaboration.OnlytheREITSandbusinesstrustsremainlisted,servingasplatformsforcapitalrecycling,whileprovidingstablereturnstounitholders.Since2014,wehavelistedtwonewREITS(KeppelDCREITandKeppelPacificOakUSREIT),madeastrategicinvestmentinPrimeUSREIT,andgrownourassetsundermanagement.

Wearepushingformorecollaborationas OneKeppel and harnessing of synergiesacrossthegrouptoensurethat the whole is greater than the sumofitsparts.Tothisend,wehaveestablished entities such as Keppel Capital,KeppelUrbanSolutions(KUS)andKeppelTechnology&Innovation,which support collaboration and hunting asapack.TheformationofKeppelCapital,inparticular,helpsthegrouptotapthirdpartyco-investmentfundsto grow our business without straining ourbalancesheet.

In2018,weralliedthegroupbehindacommonmissiontoprovidesolutionsforsustainableurbanisation.Today,weseeincreasingexamplesofcollaborationamongKeppelBUsinpursuitofourcommonpurpose,suchasbetweenKeppelLandandKUStodevelopSaigonSportsCity,betweenKeppelDataCentres,KeppelInfrastructureandKeppelOffshore&Marine(KeppelO&M)todevelopenergyefficientfloatingdatacentreparks,andbetweenKeppelO&MandM1totestbedmaritimeautonomoussurfaceships.

Reflectingourcommonpurpose,wewillalignthelogosofourBUsstartingfrom1March2020.InsteadofhavingKeppelwordmarkssportingdifferentcolours,wewilladoptaconsistentred,symbolisingthepassionofKeppelites.Thechangewillbeprogressivelyrolledoutaroundtheworld.

WearedeepeningourpresenceinrapidlyurbanisingmarketssuchasChinaandVietnam,andexpandingourproductsandofferings,withsmart,urban

projects,renewables,gassolutions,assetmanagementandconnectivityamongournewgrowthengines.KeppelisalsoexpandingfrombeingmainlyaB2BcompanyintotheB2Cspace,withconsumer-facingbusinessessuchasM1,KeppelElectric,CityGasandUrbanFox.

Wearealsobuildingamoreagileandinnovativecompany,includingthroughventurecapitalinvesting,toacquirenewcapabilitiesandimproveaccesstopotentialdisruptivetrends.

Committed to sustainability There is growing international consensus on the urgent need forclimateaction-aviewwhichKeppelshares.Weseesustainabilityasacriticalpartofourmission.

AtKeppel’sboardoffsitemeetinglastSeptember,wereaffirmedourcommitmenttoputsustainabilityatthecoreofourstrategy.Sustainabilitywillbeakeyconsiderationinourinvestmentdecisions.Wewillavoidhighlypollutingbusinessessuchascoal,andemphasiserenewablesandcleanerenergysuchasgas.ThispivottowardsrenewablesandgascanalreadybeseeninKeppelO&M’sstrategy,with

renewablesandLNG-relatedsolutionsmakingupcloseto60%ofneworderssecuredin2019.Weshouldputourconsiderable engineering prowess and capabilities as a solution provider toworkonclimatechange,oneofthebiggestchallengesconfrontingourplanet.Intheprocess,wewillalsocreatenewbusinessopportunities.

Beyondreportingonourcarbonfootprintanduseofscarceresources,wehavecommittedtoreducingwaste,waterandcarbonemissionsintensity.WehavebeentrackingandreportingonourScope1and2emissionssince2010,andwillalsostarttrackingScope3emissionsfromthisyear.Wehavealsosettargetstoinvestinrenewableenergygeneration.

Ineverythingwedo,wemustbeaccountabletostakeholdersanddisciplinedinexecution.ThroughourOneERPprogramme,wearebuildingacommondigitalspinethroughtheentireorganisation,andleveragingtechnologytoenhancecontrolsviaautomation,dataanalytics,continuousmonitoringandexceptionreporting.

Reflectingourfocusoncompliance,KeppelO&Mbecameoneofthefirst


companiesinSingaporetoachieveglobalISO37001anti-briberycertificationin2019.WewillworkprogressivelytowardsISO37001certificationforallotherKeppelentities.

Iamproudtosharethatweachievedourgoalofzerofatalitiesacrossourglobaloperationsin2019.Thisisthefirsttimethegrouphasachievedthistargetinover25years.Wewillcontinue to do our best to ensure that atallourworkplaces,everyonegoeshomesafe,everyday.

ArecentstudyrevealedthatKeppeliswidelyregardedbyinternalandexternalstakeholdersasatrustedandreliablecompany.Thisreputationhasbeenpainstakinglybuiltovertheyears,andwemustworkhardtoupholdit.Atthesametime,tostayaheadinaneraofrapidchange,Keppelmustcontinuetoevolvetoremainrelevant.

Future focus Lastyear,weheldaVision2030exercise,whereabout30youngerKeppelbusinessleadersweretaskedtopainttheirvisionsforthecompany.Thereweremanyinteresting and contrasting ideas presented,butalsosignificantareasofconvergence,suchasthe

need to focus and build on our core strengths,divestnon-corebusinesses,tapthirdpartyfundsforgrowth,andbuildanagileorganisationalculture.Wewilltakeonboardtheseideasaswechartthecompany’s2030vision,withinterimtargetsfor2025.WewillsharemoreonVision2030laterthisyear.

Keppelitesformthebedrockofthecompany.Wearecommittedtopeopledevelopmentandbuildinganorganisationwherestaffareengagedandmotivatedtogivetheirbest.IampleasedtoseethatourEmployeeEngagementScorehasrisensteadily,from80%in2015,to82%in2017to86%in2019,significantlyhigherthantheaverageof76%amongSingaporecompanies.

This strong organisational health is underpinnedbyourcommonpurpose,whichgivesmeaningtowhatwedo.Keppelitesareinvigoratedbyhowthecompanyiscontributingtoamoresustainableworld.Inthesameengagementsurvey,morethan90%ofKeppelitesalsoindicatedthattheywereproudofKeppel’sCSRefforts,whetheritishelpingthelessfortunate,greeningtheenvironment,promotingeducationorsupportingthearts.Keppelwillcontinuetomakeapositiveimpactonthecommunity,whereverweoperate.

LastOctober,Temasek,throughitsindirectwholly-ownedsubsidiary,announcedavoluntarypre-conditionalpartialoffertoacquire

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1 Floating data centre park.

2.Renewables-Offshorewindproject.

3. PresidentHalimahYacob(seated,left)gracedthelaunch of Keppel’s partnership with SPDtosupportitsshelteredworkshopprogrammewhichaimstoempowerpersons with disabilities.

4. Volunteersacrossthe Keppel Group spentthemorningplanting trees in supportofNParks’Forest Restoration ActionPlan.

anadditional30.55%ofsharesinKeppelCorporation.Ifsuccessful,thepartialofferwillresultinTemasekandtheofferorowninganaggregate51%ofKeppel.Weareunabletocommentontheoffer,butwe share the view that there is inherent long-termvalueinKeppel’sbusinesses.Asalways,wewillendeavourtodelivervalueforallourstakeholders.

What is Keppel today? Toconclude,Keppeltodayisnotjustagroupofunrelatedcompanieswhichshareaname,butaneco-systemofcompanies,collaboratingtoprovidesolutionsforafasturbanisingworld.We are harnessing the group’s capabilitiesandproventrackrecordinengineering,projectdevelopment,

operatingandmanagingspecialisedassets,capitalandassetmanagement,and growing new businesses aligned withthesecompetencies.Throughourintegratedbusinessmodel,weseektocreatevalueacrossthegroup,andimproveboththemagnitudeandqualityofourearningswithmorerecurringincome,while enhancing returns though active capitalrecycling.OurvisionisforKeppelto be one integrated business providing solutionsforsustainableurbanisation.

IthankKeppelitesandourdifferentstakeholdersforyourunstintingsupportandconfidenceinthecompany.IlookforwardtoworkingwitheveryonetoforgeastrongerKeppel,andbuildasustainablefuture.

Iwishyouandyourlovedonesgoodhealthandhappinessin2020.

LOH CHIN HUA CEO, KEPPEL CORPORATION

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M1’s transformation

“We have a clear plan for the transformationofM1.Therewillbechallengesaheadbutweareconfidentofovercomingtheseandcreatingvalueforallstakeholders,”saidMrLohChinHua,CEOofKeppelCorporation,tosome30sell-sideanalystscoveringtheindustrialandtelcosectors.

Heldon23October2019,MrLohwasjoinedbyMrManjotSinghMann,CEOofM1,MrChanHonChew,CFOofKeppelCorporation,MrLeeKokChew,CFOofM1,aswellasseniormanagementfrombothKeppel Corporation and M1 at this analystbriefingonM1’sbusinesstransformation.

AspartoftheKeppelGroup,M1isbeingtransformedfromatelcointoaproviderofconnectivitysolutions.Inhispresentation,MrMannsharedfourmajorthemesofM1’sstrategy,namely:strengtheningtheconsumerbusiness,developingfuturegrowthengines,buildingdigitalcapabilities,anddrivingregionalexpansion.

Duringtheyear,M1startedmulti-vendor5Gtrials.M1willbeworkingcloselywithgovernmentagencies,industryplayers,partners and institutes of higher learning toco-developusecasesforselectedmarketsandjointlybringnew,innovativeandsmartapplicationsthatleverage5Gtechnologytothemarket.MrMann

addedthatmanyoftheusecasesbeingdevelopedbyM1canalsobetest-bedded,aheadofthe5GrolloutinSingapore.

RespondingtoquestionsonsynergieswiththeGroup,MrMannsaid,“AspartoftheKeppelGroup,M1willalsocollaboratewith other business units to create smarterconnectivitysolutionsintheareasofOffshore&Marine,DataCentresandUrbanSolutions.

“Currently,lessthan2%ofhouseholdcustomersarecommonacrossKeppelElectric,CityGasandM1.Weseehugeopportunitiesincross-sellingservicesacrosstheconsumerbusinesses,andincreasingourshareofcustomers’wallets.”

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1. MrLohChinHua,CEOofKeppelCorporation,MrManjotSinghMann,CEOofM1,andseniormanagementfromKeppelCorporationandM1engagedsell-sideanalystsonM1’stransformationplans.

2. On23January2020,M1andStarHubannouncedthattheyhavesignedanexclusiveagreementtocooperateandsubmitajointbidfora5Glicence.

Driving our digital future

Astheworld’sconnectivityneedsgrowandevolve,5Gtechnologypresentsopportunitiesforpeople,businesses,citiesandindustriestobecomemoreconnected,smarter,andmoresustainable.InresponsetotheInfo-communicationsMediaDevelopmentAuthority’s(IMDA)planstorollout5GnetworksinSingaporein2020,M1andStarHubannouncedon23January2020thattheyhavesignedanexclusiveagreementtocooperateandsubmitajointbidfora5Glicence.

M1hasalsomadesignificantheadwayinto5GdevelopmentandtrialsinthepastyeartosupportSingapore’songoingtransitioninto a global innovation hub for research into5Gconnectedmobilitysolutions.

InJanuary2020,M1andSingaporeInstituteofTechnology(SIT)signedaresearchcollaborationagreementtodevelopadvancedartificialintelligence(AI)deeplearningalgorithmsandmethodologytoimprovetheplanning,operationsandmaintenanceoflargeandcomplexmobilenetworks.Inordertomeetthediverserequirementsofemergingmobile

applicationsandaddressthecomplexityoftheimpending5Gnetworkdeployment,thispartnershipwillseeM1andSITdeepdiveintothedevelopmentofAIsolutionstoreducemanualobservationandanalysisofthehugeamountofnetworkkeyperformanceindicators,whicharelabourintensiveandmaybepronetoerror.

Thislatesttie-upcomesafterM1inkedapartnershipwithNanyangTechnologicalUniversityinOctober2019,todevelopSingapore’sfirst5Gcellularvehicle-to-everything(C-V2X)researchtestbedandtrials.C-V2Xcommunicationsisusedtoenhancesafetybyrelayingreal-timetrafficnavigationandhazardinformationtousersinadvance.Itcansendtrafficwarningnotificationsatroadjunctions,whichhelpsoptimiseroadusagebyreducingtravellingtimeandminimisingtheriskofaccidents.

Inthesamemonth,M1announceditspartnershipwithfamoushotpotbrandHaidilaotosetupatrial5GnetworkforHaidilao’snewstoreatMarinaSquare,featuringself-developedsmartmachinessuchasanIntelligentKitchenManagement

System,acustomisedautomaticsoupbasemachine,andfooddeliveryrobots.

Earlierin2019,M1wona5GTrialTechCallfromIMDAandPSACorporationLtdtostudy5Gperformanceandcapabilitiesforportapplications,includingtele-remotecontrolofportequipmentandenhancementofautomatedguidedvehiclesoperations.Thecompanyalsosigned a research collaboration with SingaporeUniversityofTechnologyandDesigntostudytheremoteoperationoftactilerobotsusing5Gtechnology,furthersupportingSingapore’sSmartNationtransformationjourney.

M1’sconnectivitysolutionsalsoholdgreatpotentialforKeppel’sbusinesses.Sinceearly2019,M1hasbeencollaboratingwithKeppelOffshore&MarineonwhatisexpectedtobeoneofSingapore’sfirstautonomousvessels.TheprojectleveragesM1’sultra-lowlatency4.5Gnetworkconnectivitytoestablishstandardsanddatatransferlinksforship-to-shorecommunicationbetweentheautonomoustugandtheonshorecommandcentre.

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Building a better world

Around the world, many cities are facing urbanisation challenges brought about by growing populations, land constraints, and environmental issues. Keppel Infrastructure is investing in and leveraging its technology to contribute to cleaner environments for these fast-urbanising cities.

Creating cleaner environmentsAtpresent,KeppelSeghers’extensiverange of solutions for wastewater treatmentandwaterrecyclingsupportsthesafeandreliablemanagementofmunicipalandindustrialeffluent.Intermsofwastemanagement,itsproprietarywaste-to-energy(WTE)technologyalsosignificantlyreducesthevolumeofsolidwastetobelandfilledbyupto90%,extendingthelifespanoflandfillsand reducing greenhouse gases that are releasedinlandfills.

KeppelSeghersfurtherstrengthenedits position as a leading provider of environmentalsolutionswitha$5millioninvestmenttoacquirean18.18%stakeinZerowasteAsiaon16December2019.ZerowasteAsiaisaSingapore-basedcompanythatoffersone-stopenvironmentalsolutionsinindustrialwasteandwastewatertreatment.Theirproprietarytechnologyremovesheavymetalsandpollutantsfromwasteandrecyclesdetoxifiedwasteintomaterialssuitableforlandreclamationand

construction.Wastewatercanalsoberepurposed for industrial operations or befurthertreatedtomeetincreasinglystringentdisposalcriteria.

On20January2020,KeppelSeghersalsosecuredcontractstosupplyWTEtechnologyandservicesworthoverEUR$12million(approximately $18million)fromAbellonCleanEnergyLimitedbasedoutofGujaratinIndia.TheseWTEprojectswouldbefirst-of-their-kindinGujarat.

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1. TheWTEplantsinGujarat,India,willfeatureKeppelSeghers’proprietarytechnologywhichisdesignedtoachieveefficientenergyrecovery,operationalreliability,andcreatecleanerenvironments.

2. KeppelCapitalhasenteredintoaconditionalsalesandpurchaseagreementtoacquire50%interestinPierfrontCapital,whichwillactastheinvestmentmanagerofKeppel-PierfrontPrivateCreditFunds.

Strategic acquisitions

KeppelCapital,throughitswholly-ownedsubsidiary,KCManagementOne,hasenteredintoaconditionalsalesandpurchaseagreementon13November2019toacquirea50%interestinPierfrontCapitalFundManagement(PierfrontCapital)fromPierfrontCapitalMezzanineFund(PCMF)foranaggregatecashconsiderationofapproximatelyUS$7.8million(approximately$10.8million).

PierfrontCapitalisawholly-ownedsubsidiaryofPCMF,aSingapore-basedalternativecreditinvestmentcompanyinwhichTemasekandSumitomoMitsuiBankingCorporationholdapproximately90.91%and9.09%interestsrespectively.

PierfrontCapitalwillactastheinvestmentmanagerofKeppel-PierfrontPrivateCreditFunds,aseriesoffundsthat would be established to provide credit to corporates or projectsintherealassetsectors.

MsChristinaTan,CEOofKeppelCapital,said,“ThestrategicacquisitionofastakeinPierfrontCapitalallowsKeppelCapitaltomanagemezzanineloansforprivatedebt,whileextendingourfundmanagementcapabilitiesbeyondtheequitylayerofthecapitalstack.Theprivatemezzaninedebtforrealestateandinfrastructureprojectsisagrowingassetclass,andweareconfidentthatKeppel-PierfrontPrivateCreditFundswillbewell-positionedtocaptureinvestmentopportunitiesandcreatevalueforinvestorsandtheKeppelGroup.”

KeppelSegherswillprovidethecoreequipment,design,andtechnicalservicesfortheplant’sair-cooledgrateandverticalboiler,whicharedesignedtoachieveefficientenergyrecoveryandoperationalreliability.Whencompleted,thefacilitycaneffectivelyreducethevolumeofwastethatgoestolandfillsbyover90%.

Asoneofthemostpopulousnationsintheworld,Indiaproducesoneofthehighestamountsofmunicipalsolidwaste,withonlyafractionofitbeingtreated,andthemajorityofthewasteeitherlandfilledordisposedinopenareas.

Providing energy solutionsOn16January2020,KeppelInfrastructurealsoannouncedthecompletionoftheacquisitionofa20%stakeinMETGroup,aSwiss-basedEuropeanenergycompany.Inadditiontotheinvestment,thetwocompaniesenteredintoastrategicpartnershiptojointlyexploreinvestmentopportunitiesfocusingonEuropeanenergyinfrastructureassets.

AsoneofthelargestindependentenergysuppliersinCentralandEasternEurope,METGroupprovides Keppel access to a diverse portfolio of naturalgasandelectricitycustomers,allowingKeppel to strengthen its presence in the natural gas,powerandoilmarkets.

InalignmentwithKeppel’sgrowingfocusonrenewables,METGroupalsohasambitiousplansforitsrenewableenergystrategy,andisinvolvedintheconstructionofa17.6MWDunaiSolarPark,oneofthebiggestsolarpowerplantsinHungary.

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Quality in execution

With a strong foundation in engineering and extensive project management experience, Keppel Offshore & Marine (Keppel O&M) ensures quality at every stage of the project. In the past quarter, it marked significant milestones for a range of vessels.

Semisubmersible Keppel O&M commenced construction of the second midwater harsh environment drilling semisubmersible unit for Awilco Drilling with the strike steel ceremony held on 1 November 2019. Scheduled for completion in 2022, the rig is able to work in the harshest environments of North West Europe, including the Barents Sea.

Dredger In the same month, Keppel O&M commenced construction of the second high-specification Trailing Suction Hopper Dredger (TSHD) for Van Oord. The strike steel ceremony was held on 6 November 2019. The 10,500m3 dredger is scheduled for delivery in 2021 and will be equipped with dual-fuel systems capable of running on LNG.

LNG bunkering vessel Construction of the ice-class LNG bunkering vessel for Shturman Koshelev LLC is on schedule and the project marked the laying of the keel on 17 December 2019. To be built to a proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development, the vessel will operate in the Baltic Sea when completed in end 2020.

Keppel Bay Tower is the first commercial development in Singapore to utilise renewable energy to power all its operations, as well as the offices of tenants in the building. Since 1 January 2020, Keppel Land has, through its electricity retailer Keppel Electric, been purchasing renewable energy certificates which are generated from solar panels installed in Keppel Offshore & Marine’s (Keppel O&M) yards in Singapore. Keppel Land will also be installing solar panels on the roof of Keppel Bay Tower and has implemented new and emerging technologies to improve the building’s energy efficiency by 20%. These initiatives are part of Keppel’s continued efforts to transform Keppel Bay Tower, which is a BCA Green Mark Platinum building, into Singapore’s first Super Low-Energy High-Rise Existing Commercial Building.

Harnessing renewables

Reduction of over 2,400 tonnes of carbon emissions per annum Renewable energy certificates generated from solar panels installed in Keppel O&M’s yards in Singapore, combined with clean energy from the installation of solar panels at Keppel Bay Tower, will result in a reduction of over 2,400 tonnes of carbon emissions per annum – an amount which would otherwise require about 12,000 trees to absorb over about 50 years.

Smart, eco-features of

Keppel Bay Tower

Cooling Tower Water Management System utilises a patented solution that reduces cooling tower water usage and eliminates the need for chemical water treatment.

Smart Lighting System utilises occupancy sensors which allow seamless transition in lighting levels according to building occupancy.

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Demand Control Fresh Air Intake System utilises integrated sensors to regulate fresh air intake according to indoor activities, optimising energy usage for better thermal comfort and indoor environmental quality.

Intelligent Building Control System employs a high precision physics-based simulation engine to improve data analytics and control.

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Solar Panel System allows the harvesting of about 100,000 kWh per annum.

Energy Efficient Air Distribution System features an air handling unit fan which is about 25% more energy efficient than other best-in-class technologies.

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Overall energy savings of 20% or 1.5 million kWh/year This is equivalent to the amount of energy required to power more than 250 five-room HDB flats for a year.

Energy Efficiency Index (EEI) of 115 kWh/m2 per yearAn average Green Mark Platinum building has an EEI of 145 kWh/m2 per year.

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Spurring innovation

1. DrLeeBoonYang(secondfromright),ChairmanofKeppelCorporation,andMrLohChinHua(secondfromLeft),CEOofKeppelCorporation,togetherwithKTAPmembers(fromlefttoright)ProfStefanThomke,MrPeterNoble,ProfNgWunJern,MrChuaKeeLock,DrRomainDebarre.

2. KeppelREIT’s$150milliongreen loan can be used to financeorrefinanceeligiblegreenprojects,whichincludesOceanFinancialCentre(pictured).

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KTAP meetingTheannualKeppelTechnologyAdvisoryPanel(KTAP)meeting,organisedbyKeppelTechnology&Innovation(KTI),washeldon25and26November2019atKeppelLeadershipInstitute.Around100participants,includingmembersofKeppel Corporation’s Board of Directors andseniormanagementfromacrosstheGroup,joinedthesessionwhichwascentredonfourthemes,namelyenergytransitions,energyefficiency,digitalisationandinnovationinvesting.

Inhisopeningremarks,ProfNgWunJern,ChairmanofKTAP,highlightedthatKTAP’srolehassubstantiallyevolvedoverthepastthreeyears.KTAPhasbroadeneditsagendatocoverthemes

likesustainableurbanisation,whereitevaluatesbusinessviabilityalongsidethetechnicalfeasibilityofnewandexistingprojects.Inaddition,KTAPhasbeenactivelyinvolvedinbroadeningKeppel’snetworkofinvestmentandindustrycontacts.

ProfNgalsowelcomednewKTAPmemberDrRomainDebarre,whocurrentlyservesasMDofA.T.KearneyEnergyTransitionInstitute.DrDebarrekickedoffthepresentationswithasharingonenergytransitions,wherehespokeonglobaltrendsandopportunitiesinwind,solarandhydrogenpower.Speakingonenergyefficiency,MrJulienMialaret,OperatingPartneratIdinvest,sharedhisframeworkforsmartcitiesand

highlightedseveralenergymanagementsolutionsofferedbystartups.

Digitalisation and innovation investingwerealsokeytopicsatthemeeting.AssociateProfTanTinWee,ChiefExecutiveoftheNationalSupercomputingCentreSingaporeandKeppelDCREITboardmember,presented on the latest progress in quantumcomputing,bothfromthetechnological perspective as well as its societalimplications.

Wrapping up the presentations were MsCheahSuiLing,OperatingPartnerofWavemakerPartner,whospokeonventurecapitalinvestmenttrends,andMrDenesBan,ManagingPartnerof

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Green loan for Keppel REIT

KeppelREIThasincreaseditssustainability-focusedfundingwitha$150milliongreenloanfacilityinDecember2019.Thislatestgreenloanfacilitycanbeusedtofinanceorrefinanceeligiblegreenprojectsand fund the further growth of Keppel REIT ’s green buildingportfolio.

The Manager has also established the Keppel REIT Green LoanFramework,whichcomprisesfourcoreelementsthatrelatetotheuseofproceeds,projectevaluationandselectionprocess,managementofproceedsaswellasreportingprocess.

MrPaulTham,CEOoftheManager,said,“SustainabilityisakeytenetofKeppelREIT’sstrategy.Thiscommitmentextendsbeyondupholdinghighenvironmentalstandardsatourproperties,butalsocoversourfinancing.OurGreenLoanFrameworkwillprovide a clear and structured guide for Keppel REIT as we grow our proportion of green funding sources in our continueddrivetobuildasustainablefuture.”

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OurCrowd,whosharedOurCrowd’sexperienceinscoutingtechnologysolutionsforKeppelfromtheIsraeliinnovationcommunity.

Inclosing,ProfNgencouragedattendeestoexploredifferentmodelsofinnovation,includingventure capital investing which will accelerate the Group’saccesstonear-commercialstagesolutionswhilemanagingriskandinnovationcosts.

Venture INC KTI’snewestideationandincubationinitiative,VentureINC,kickedoffinDecember2019withanideationsprint.

Overthefour-dayworkshop,23shortlistedparticipantsfromacrosstheGroupwereguidedbyinnovationexpertsRainmakingonideatingandrefiningbusinessmodelideasthatcouldpotentiallydelivernewvaluetoexistingornewcustomers.

Onthefinalday,ninebusinesscaseswerepitchedtoajudgingpanelcomprisingseniormanagementfromKeppel,aswellasventurecapitalistsfromWavemaker,DBSandEDBNewVentures.

The ideas shortlisted for further incubation includesolutionsforwasteinthemarineenvironment,enhancedworkersafetyandsmarthomes.Theshortlistedteamswillenterathree-monthincubationprogrammeguidedbyRainmakingmentorstostartdevelopingtheirideasintopotentialnewventuresforKeppel.

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Safety 4.0

Keppel is committed to providing a safe workplace for all its stakeholders. The 13th edition of the Keppel Group Safety Convention was held in November 2019. Separately, safety site visits were conducted for members of the Group’s Board Safety Committees (BSC) and senior management.

13th Keppel Group Safety Convention“Keppelhasbeentransformingitself,acquiringnewcapabilitiesandharnessingtechnologybothinbusinessandinsafety,”sharedMrLohChinHua,CEOofKeppelCorporation,inhisopeningaddressatthe13thKeppelGroupSafetyConventionon5November2019.

Theannualevent,themed‘Safety4.0’,wasattendedbycloseto400participantsincludingboardmembers,management,employees,unionmembers,contractorsandsubcontractors,partnersandbusinessassociates.

Inhisaddress,MrLohaddedthatKeppel’ssafetyprocesseshavebeenevolvingintandemwiththeglobaltransitiontoIndustry4.0,citingexamplessuchasKeppelOffshore&Marine’s(KeppelO&M)pilotingofasmart

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1. TheannualKeppelGroupSafetyConvention is a valuableplatformforallstakeholderstoreaffirmtheircommitmenttosafety.

2. ThecovetedChairman’sSafetyChallengeTrophyfor 2019 was awarded to Keppel O&M(ConversionsandRepairs)foritsstrongsafetyperformance.

watchthatcanmonitorheartrate,tracklocation,anddetectfallsanddistresscalls,aswellasKeppelLand’suseofradio-frequencyidentificationdevicestoalertmachineoperatorsandworkersofsafetyhazards.TheseinitiativesareinlinewiththeMinistryofManpower’s(MOM)WorkplaceSafetyandHealth(WSH)2028Vision,whichpromotestechnology-enabledWSH. Guest-of-HonourMrSilasSng,CommissionerforWSHatMOM,commendedKeppelforinvestinginthesafetyandhealthofitsworkforce.Heencouraged Keppel to continue facilitating abusinessenvironmentthatfavourscompanieswithgoodsafetypractices.

OtherspeakersincludedguestspeakerMrTonyLombardo,CEOAsiaofLendlease,whospokeondrivingtransformationalWSHchange,andMrRKJaggi,GMofGroupHealth,Safety&Environment(HSE)atKeppelCorporation,whopresentedonKeppel’stransformationalroadmaptodigitalisationinsafety.

TheaudiencealsoenjoyedaninteractivepanelsessionwiththeHSEHeadsofKeppel’sbusinessunits.ThespeakerssharedtheirviewsonimprovingsafetypoliciesandprocessesacrosstheGroupaswellasovercomingchallenges associated with new technologies.

To recognise Keppelites for their outstandingcontributionstosafetyandinnovation,individualKeppelGroupSafetyAwardsandSafetyInnovationTeamAwardswerepresented.ThecovetedChairman’sSafetyChallengeTrophyfor2019wasawardedtoKeppelO&M(ConversionsandRepairs)foritsstrongsafetyperformanceaswellasinnovativesafetyprojectsandinitiatives.

Inhisclosingremarks,MrTanEkKia,ChairmanoftheKeppelCorporationBSC,emphasisedtheimportanceofbolsteringthecompany’ssafetycultureand encouraged Keppelites to continue makingKeppelasafeandgreatplacetowork.

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Site visitsKeppelCorporation’sBSCmembersandseniormanagementmakeregularsafetysitevisitstotheGroup’soperationstoengagestaffandunderstandsafetychallengesfacedbystaffontheground.

InNovember2019,DrLeeBoonYang,ChairmanofKeppelCorporation,MrLohChinHua,CEOofKeppelCorporation,andKeppelLandseniormanagementvisited Garden Residences where theywerebriefedonthesites’safetyprocesses.DrLeeandMrLoh,togetherwithMrTanEkKia,ChairmanofKeppelCorporation’sBSC,MsChristinaTan,CEOofKeppelCapital,andMrMatthewPollard,CEOofKeppelInfrastructure

FundManagement,alsovisitedCityGas.OutsideofSingapore,MrLoh,MsTan,andMrPollardmadetheirfirstsafetyvisittoIxom’sindustrialchemicalstreatmentanddistributionplantinMelbourne.IxomwasacquiredbyKeppelInfrastructureTrustinFebruary2019.

Keppel’smanagementteam,ledbyMrLoh,togetherwithKeppelO&MBSCmembers-MrTan,MrLimChinLeong,ChairmanofKeppelO&MBSC,andMrChrisOng,CEOofKeppelO&M-startedtheyearwithasafetyvisittoKeppelShipyardon10January2020,wheretheywerebriefedonsafetymeasuresanddevelopmentsfortheGimiFloatingLiquefactionVessel(FLNG)project.

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1. KeppelseniormanagementandKeppelO&MBSCmemberswerebriefedonsafetymeasuresatasafetyvisit to Keppel Shipyardon10January2020.

2. AllofKeppelO&M’syardshaveundergone a strict complianceexerciseand achieved ISO37001certificationbyNovember2019.

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Strengthening engagement in Shanghai

On3January2020,MrBenLee,PresidentofKeppelLandChina,calledonMrYuYong,HeadofJing’anDistrict,Shanghai,duringwhichMrLeesharedwithMrYuthecompany’slong-termplansinthedistrict.MrYuexpressedstrongsupportforKeppelLand’splans.

KeppelLandisoneofthefirstforeigndeveloperstoentertheShanghaimarket,oneofthecompany’skeyfocuscitiesinChina.Todate,ithas established a strong foothold in the Jing’an District with two well-receivedresidentialprojects–OneParkAvenueand8ParkAvenue.Theupcomingoffice-cum-retaildevelopment,ParkAvenueCentral,isenvisagedtobeaniconicdevelopmentintheprecinct.

Commitment to compliance

KeppelOffshore&Marine(KeppelO&M)isoneofthefirstcompaniesinSingaporetoachieveglobalcertificationfortheISO37001Anti-BriberyManagementSystem(ABMS).FollowingthecertificationofKeppelO&M’sSingapore-basedsubsidiariesattheendof2018,allitsoverseasbusinessunits,whichincludethoseintheUnitedStates,Brazil,China,thePhilippines,theUnitedArabEmirates,India and Bulgaria have also achieved certification.

TheISO37001StandardisthefirstandonlyinternationalISOStandardrelatingtocomplianceprogrammesandanti-briberymanagementsystems.Aspartofthecertification,theKeppelO&Mbusinessunitsimplementedaseriesofgloballyrecognisedanti-briberymeasures,whichincludeanti-briberypolicy;proceduresandtraining;financial,procurementandcontractualcontrols;third-partyriskassessmentsandduediligence;aswellasreporting,monitoringandinvestigation

procedures,whichareconductedonaregularbasis.

MrChrisOng,CEOofKeppelO&M,said,“KeppelO&MisproudtohaveachievedtheISO37001globalcertification.Thishasbeenaverythoroughexerciseandwehaveputinplacearobustcompliancesystemacrossallouroperationsworldwide.Wearecommittedtothehighestlevelofintegrityintheconductofourbusiness,andwillcontinuetoengageallourstakeholderstostrengthenourcomplianceprogramme.”

MrDaveCheng,ManagingDirectorofSocotecCertificationSingapore,added,“TheISO37001certificationisarigorousexercisethatensurestheeffectivenessofKeppelO&M’sAnti-BriberyManagementSystem.IwouldliketocommendthemanagementandstaffofKeppelO&Mforfosteringacultureoftransparencyandcompliancethatisessentialinpreventingbriberyandcorruptionatalllevels.”

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Employer of choice

Keppel has been certified as a Top Employer Singapore for 2020 by the Top Employers Institute, an internationally renowned global certification body that recognises excellence in people practices.

Mr Yeo Meng Hin, Director, Group HR, Keppel Corporation, said, “We are very pleased to attain the Top Employers certification. We will continue to transform our HR practices to support Keppel’s mission of providing solutions for sustainable urbanisation.”

Crossing borders

Keppel Young Leaders (KYL) continued with its Leaders’ Dialogue and Kopi with KYL series, themed ‘Crossing Borders’, with two sharing sessions in November.

On 19 November 2019, Mr Ho Kiam Kheong, India Representative at Keppel Corporation and President of Keppel Land India, shared with some 40 Keppelites about his experience working in India, as well as his take on India’s property market and opportunities for Keppel Land.

On 14 November 2019, Dr Dennis Khoo, Regional Head of TMRW Digital Bank at UOB, engaged Keppelites in a dialogue on establishing effective B2C business models. Dr Khoo spoke on his experience in establishing UOB’s TMRW digital banking solutions and best practices in leveraging technology to improve customer engagement.

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Celebrating camaraderie

On 5 December 2019, about 120 Keppel Fellows, Keppel Corporation directors and senior management from across the Group enjoyed a get together at the Marina Bay Sands for dinner followed by the award-winning production ‘Sweeney Todd: The Demon Barber of Fleet Street’.

It was a night to celebrate camaraderie and show appreciation for those who have contributed to Keppel’s development over the past decades.

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1. (From left to right) Mr Robert Chong, former Director, Group HR, Keppel Corporation; Ms Wang Look Fung, Chairperson of Keppel Fellows and former Director, Group Corporate Affairs; and Mr Loh Chin Hua, CEO, Keppel Corporation.

2. (From left to right) Mr Loh Wing Siew, former MD, Keppel Shipyard; Dr Lee Boon Yang, Chairman, Keppel Corporation; Mr Tony Chew, former Board Director, Keppel Corporation; and Mr Niam Chiang Meng, former Board Director, Keppel Land.

3. (From left to right) Mr Ho Cheok Yuen, former President, Keppel AmFELS; Mrs Ho Cheok Yuen; Mrs David Chin; Mr David Chin, former ED of the Singapore Maritime Foundation; Mr Loh Meng See, former Board Director, Keppel Singmarine and k1 Ventures; Mrs Loh Meng See; Mr Lim Siam Kim, former Board Director, Keppel Singmarine and k1 Ventures; Mrs Lim Siam Kim; Mr Stanley Tok, Deputy Director, HR, M1; and Mr Yeo Meng Hin (standing), Director, Group HR, Keppel Corporation.

4. (From left to right) Mr Kevin Wong, former CEO, Keppel Land; Mr Tan Swee Yiow, CEO, Keppel Land; and Mr Edward Lee, former Board Director, Keppel Land, with his daughter.

40 41 KEPPELITES AROUND THE WORLD

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Home away from home

Keppel values the contributions of foreign workers. As part of the International Migrants’ Day celebrations held on 15 December 2019, a 2.4m x 3.8m mural was unveiled at Acacia Lodge, one of Keppel Housing’s dormitories. The ‘Colour My Dorm’ initiative was co-organised by Singapore’s Ministry of Manpower and Ministry of Social and Family Development, and involved youth probationers working with foreign workers from Acacia Lodge to paint the mural.

Kaliaperumal Sasikumar, Technician at Alpine Engineering Services, said, “I am very happy with the painting because it shows cricket which is a sport I love. I helped with the painting too. The youths were very good, they taught us how to mix the paint and do the painting. We also talked a lot and I told them all about cricket!”

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Keppelites across the Group continued to bond through sports at the 2019/2020 Keppel Games, where Citius, Altius and Fortius teams battled neck and neck in the volleyball, bowling and dragonboat challenges.

Hard serves and powerful spikes were the order of the day at the volleyball challenge on 26 October 2019. After an impressive display of skills and teamwork by all three teams, it was Team Fortius who bagged the volleyball challenge trophy.

The teams crossed swords again at the bowling challenge on 24 November 2019, where the audience was treated to an entertaining

Competition heats up

1. The rowers displayed tremendous teamwork and determination as they raced neck and neck under the blistering heat.

2. The mural signifies the zest of foreign workers, such as Kaliaperumal Sasikumar (pictured) from India, to live life to the fullest when working in Singapore.

3. Jason and his wife travelled to the famed Iguaçu Falls located at Foz do Iguaçu, Brazil.

showcase of different techniques and handiness. After a morning of intense competition, Team Citius clinched the overall champion position.

2020 kicked off with the teams vying to win the dragonboat challenge on 18 January. Despite the blistering heat, rowers displayed a united front and raced with strength, determination and impressive synchrony. After a gruelling day of competition, paddlers from Team Altius emerged triumphant.

As the Grand Finale in March approaches, the competition for the upcoming basketball, tennis and soccer challenges will only intensify. Stay tuned!

Relishing challenges

As a young professional in the finance industry, Jason Tan did not expect to be posted halfway across the world. However, when he was offered a role in BrasFELS, Keppel Offshore & Marine’s yard in Brazil, Jason relished the challenge.

So in July 2018, he and his wife relocated to Angra dos Reis, Brazil, and the young couple began their adventure in a foreign land, despite not knowing the native language. Having spent around one and a half years in the South American country, they now know their way around.

“At first, it was a challenge adapting to the new environment. We could not communicate very well with the locals and even had trouble ordering our meals in restaurants. However, we have since

picked up some of the local lingo and are much more settled into the local operating environment. We also had support from family, friends, as well as the company and colleagues, and that helped us a lot.”

In his role as Financial Controller of BrasFELS, Jason oversees the finance functions of the Keppel Group of companies in Brazil.

He was actively involved in the Brazil implementation of Project Autobots, a Keppel Group-wide project to adopt a single Enterprise Resource Planning platform and Finance Shared Services Centre. As part of the project, he worked with external consultants and internal stakeholders to implement the new systems and processes,

and customise them to cater to the requirements of local regulations.

Jason and his wife spend their free time hunting for new food experiences and travel destinations. Last year, they travelled westwards to Foz do Iguaçu and visited the famed Iguaçu Falls, one of the world’s largest waterfalls. The speedboat tour took them underneath some of the waterfalls as they enjoyed nature’s beautiful spectacle.

When asked for advice to fellow Keppelites, Jason said, “Keep an open mind to experience new cultures and learn from locals. Always observe the people and environment around you, as from them, you will learn the local practices and cultural nuances.”

42 GETTING TO KNOW YOU

Spotlight on:

Chua Hsien Yang

Data centres are a growing business for Keppel. Today, the Group has 25 data centres spanning 10 countries. KeppeliteKeppelite speaks to Mr Chua Hsien Yang, CEO of Keppel DC REIT Management, about his professional journey, the growth of Keppel DC REIT, the future of the data centre business, and his interests outside of work.

Q. When did you join Keppel? Could you share some details about your journey?

IjoinedtheGroup12yearsago,in2008,asamemberofKeppelREITManagement’sinvestmentteam.

In2014,IwasgiventheopportunitytojoinKeppelDCREITManagement,theManagerofKeppelDCREIT.OurfirsttaskwastopreparefortheREIT’sinitialpublicoffering(IPO).KeppelDCREITmadeitsdebutontheMainboardoftheSingaporeExchangeon12December2014atanIPOpriceof$0.93perUnit.KeppelDCREITclosedat$2.26perUniton31January2020.SinceIPO,wehaveaddednineproperties to the REIT’s initial portfolio of eight assets and grown its assets undermanagementfrom$1.0billionto$2.6billionasat31December2019.

InmytimewithKeppel,Iwasfortunatetohavementorswhoprovidedguidanceandsupport,anddedicatedcolleagueswhoareasexcitedasIamaboutthedatacentreindustry.

Q. Could you share more about the IPO of Keppel DC REIT? And how the market’s understanding of the REIT has changed since then?

KeppelDCREITisthefirstdatacentreREITtobelistedinAsia.Itisthereforenotsurprisingthatin2014,data

centreswerearelativelylittle-knownassetclass.TherewasinitialhesitationfrominvestorstoparticipateintheIPO,and we had to pull out all the stops to engagetheinvestmentcommunity.

ImustsaythatKeppelwasaheadofthecurveinperceivingdemandfordatacentres,andthishasallowedtheREIT to draw on the capabilities of the Group.KeppelTelecommunications&Transportation(KeppelT&T),asthesponsoroftheREIT,aswellasKeppelCapital,whohassetuptheAlphaDataCentreFund,willcontinuetoprovideavisibleacquisitionpipelinefortheREIT.

Today,KeppelDCREIThasgainedgreatervisibilitywiththeinvestmentcommunity.This is due to factors such as its strong performance,scaleandqualityofitsacquisitionsaswellasregulardialogueswiththeinvestmentcommunity.Lastyear,KeppelDCREITwasincludedintheFTSEEPRANareitGlobalDevelopedIndexandtheGPR250IndexSeries,furtherenhancingitsvisibility.

Q. For you, how was the transition from working with more traditional real estate assets to data centres? And how do you and your team stay on top of the data centre industry?

The initial learning curve was steep as I neededtopickupafairamountofdatacentreknowledgeinaveryshorttime.

Myengineeringbackgrounddefinitelycameinhandyandacceleratedmylearning about the technical aspects ofdatacentreoperations.Inaddition,otherknowledgeareasandskillsetssuchasREITmanagementandcapitalmanagementaretransferrable.

Tostayonthepulseofthedatacentreindustry,weencourageourstafftoregularlyengageourcustomersandparticipateinindustryevents.WhileKeppelDCREIThascertainfirst-moveradvantages,wemustcontinuetogrow,improveandinnovatetoremainrelevant.

Q. How do you think the data centre industry will continue to evolve in the near future?

Data centres are gaining acceptance asamainstreamrealestateassetclass that is resilient and offers excitinggrowth.Thedatacentremarketisexpandinginabigwaydrivenbyfactorssuchastechnologicaladvancements,increasingdataconsumptionandrapiddigitaltransformation.Inaddition,therolloutofthe5Gnetworkisexpectedtobeanothergame-changerfortheindustry.

43 GETTING TO KNOW YOU

“To stay on the pulse of the data centre industry, we encourage our staff to regularly engage our customers and participate in industry events. While Keppel DC REIT has certain first-mover advantages, we must continue to grow, improve and innovate to remain relevant.”

Mr Chua Hsien Yang, CEO of Keppel DC REIT Management

Q. What is the work culture at Keppel DC REIT Management like? And how do you encourage staff bonding?

Currently,theManagerhas20employees.Wehaveaflathierarchythatfostersanopenculture,andactivelyencourageourteamtosharetheirideas.

Recently,KeppelCapitalacquiredaChinesegong.AndallKeppelCapitalbusinessunits,includingtheManager,havebeenaskedtostrikethegongwhenadealiscompleted.Apartfrominjectingmorefunintotheoffice,itisagreatwayforKeppelitestosharetheirjoyandcelebratetogether.

Q. Could you share your thoughts on volunteerism?

Lastyear,IparticipatedinafewactivitiesorganisedbyKeppelCapital,whichincludesurbanfarmingwiththeseniorsofThyeHuaKwanSenior

Services@TamanJurongandprata-makingwiththeyouthsfromtheMuscularDystrophyAssociation(Singapore).Myfamilyalsovolunteeredatafewothercommunityactivitiesorganisedbyourchurch.

Ienjoyvolunteeringwithmyfamilyandcolleagues.Ithinkwehaveadutytogivebacktosociety.

Q. What TV shows or movies have you watched recently?

Iamcurrentlywatchingthethirdseasonof“TheGoodPlace”.Thehitcomedyseries is a good introduction to the worksofphilosophersthroughtheages.Italsocarriesaninspiringmessageaboutcompassionandhumanity’scapacityforchange.

AsIhaveaseven-year-olddaughter,IalsorecentlywatchedFrozen2withher.Ihavetosay,webothenjoyedit.

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Empowering persons with disabilities

Keppel commits $500,000 and contributes capabilities to enhance the SPD Sheltered Workshop.

KeppelCorporationhas,throughitsphilanthropicarm,KeppelCareFoundation,pledged$500,000overthenextthreeyearstosupporttheshelteredworkshopprogrammerunbySPD,alocalcharitysupportingpersonswithdisabilities,helpingittostayrelevant,currentandeconomicallyviableinthelongerterm.

The partnership was launched on 3December2019byGuest-of-HonourPresidentHalimahYacob,togetherwithMsChiaYongYong,PresidentofSPD,DrLeeBoonYang,ChairmanofKeppelCorporation,andMrLohChinHua,CEOofKeppelCorporation,ontheoccasionof

theannualUnitedNationsInternationalDayofPersonswithDisabilities.

TheSPDShelteredWorkshopsupportedbyKeppelaimstohelppersonswithdisabilitiesimprovetheirjobprospectsthroughprovidingvocationaltraining,therapyandemploymentsupportservices.Beyondfinancialsupport,Keppelwillfurther contribute to enhancing the shelteredworkshopprogrammethroughskills-basedvolunteerismandbyorganisingactivitiestoengageSPD’sclients.

DrLeeBoonYang,ChairmanofKeppelCorporation,said,“Keppelaimstomakeapositiveimpactinthecommunity

whereverweoperate.OurpartnershipwithSPDseekstoempowerpersonswithdisabilitiesandimprovetheiremployability.Throughourskills-basedvolunteerismprogramme,youngleadersfromKeppelwillbringtheGroup’sdiverse capabilities in areas such as engineering,workplacesafety,businessdevelopmentandmarketingtoimprovetheefficiencyandfinancialviabilityoftheShelteredWorkshop.”

EnhancementstotheShelteredWorkshopwillincludeimprovementstoitsprocessefficiencyandsafetymeasures,thedevelopmentofanewapprenticeshipprogrammefortraineeswithhigherwork

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Enhancing life skills

Besidesfundingsupport,KeppelstaffwillalsovolunteeratSPDandbefriendSPDclientsthroughdiverseactivities.Thisyear,KeppelVolunteersandKeppelYoungLeadersbroughtagroupofShelteredWorkshoptraineestoattendtheNationalDayParadeandorganisedafinancialliteracyworkshop.

ShelteredworkshoptraineeKohXiangQingwasoneoftheparticipantsofthefinancialliteracyworkshop.“Theytaughtusaboutmanagingourmoney,whichisausefulskillforuswhenbuyingthings.Ihopetoattendmoreofsuchworkshopsinthefuture,”shesaid.

“WewillcontinuetoworkwithSPDonengagementopportunitiesandmakeapositivedifferenceinthelivesofbeneficiaries,”saidMsTeriLiew,PresidentofKeppelVolunteers.

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supportneeds,andanewproductlinetorefreshtheworkshop’sofferingsofgiftproducts.

Traineeslike26-year-oldAlvinTeywillgetabetterchanceatachievingmorethroughthenewapprenticeshipprogramme.AlvinwasdiagnosedwithDandyWalkerSyndrome,acongenitalbrainmalformation,lowvisionandspeechlimitations.Theseconditionslimitthespeedandqualityofhisworkattheworkshop’sassemblylines.Undertheapprenticeshipprogramme,Alvinandafewothertraineesarepickingupskillslikeleatherstitchingthatwouldallowthemtobebetterengaged,whileproducingcommercially-viableleatherproductsforsale.“Learningsewingisnoteasy,butIenjoylearningnewskillsandmakingnewthings,”saidAlvin.

“KeppelYoungLeaderswillcontinuetorefinetheapprenticeshipprogrammewithaviewtoscaleupproductionoverthenexttwoyears.WewillalsoworkwithSPDonmarketingandbranding,processoptimisationanddistribution,”saidMrIvanLim,PresidentofKeppelYoungLeadersandGMofSpecialisedVesselsatKeppelOffshore&Marine.

Keppel’ssupportalsoincludesfundingkerb-to-kerbtransportfortraineeswhohavedifficultycommutingbetweentheworkshopandtheirhomesduetotheseverityoftheirconditions.Suchspecialisedtransportservicewillmakeit possible for the trainees to get out of their homesandparticipateintheworkshop’sprogrammes.

1. ThepartnershipfortheSPDShelteredWorkshopsupportedbyKeppelwaslaunchedbyPresidentHalimahYacob(seventhfromright),togetherwithDrLeeBoonYang(sixthfromright),ChairmanofKeppelCorporation,MsChiaYongYong(frontrow,secondfromleft),PresidentofSPD,andMrLohChinHua(fifthfromright),CEOofKeppelCorporation.TheywerejoinedbymanagementfromKeppelandSPDaswellasKeppelYoungLeadersandSPDtrainees,includingAlvinTey(fourthfromright).

2. KeppelVolunteersandSPDbeneficiariescelebratedSingapore’sbirthdaytogetherattheNationalDayParadeNationalEducationShow2019.

3. KeppelVolunteersandKeppelYoungLeadersjointlyorganisedafinancialliteracyworkshopforShelteredWorkshoptraineesinNovember2019.

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Climate action

As a solutions provider for sustainable urbanisation, Keppel is committed to support efforts in tackling climate change and conserving biodiversity.

2Restoring our forestsOn21November2019,150volunteersfromacrosstheGroup,ledbyDrLeeBoonYang,ChairmanofKeppelCorporation,and MrLohChinHua,CEOofKeppelCorporation,planted150coastalforesttreesatLabradorNatureReserve.TheywerejoinedbyseniormanagementandstafffromtheNationalParksBoard(NParks).

ThisinitiativebyKeppelsupportsNParks’ForestRestorationActionPlan,whichseekstostrengthentheresilienceofSingapore’sforeststoclimatechangeandenhancebiodiversitythrough the sustained planting of native forest species.The150coastalforesttreesplantedbyKeppelareexpectedtosequester21.3tonnesofcarbondioxideovertenyears.

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11. VolunteersacrosstheKeppelGroupspentthemorningplantingtreesinsupportofNParks’ForestRestorationActionPlan.

2. DrLeeBoonYang(secondfromright),ChairmanofKeppelCorporation,andMrLohChinHua(farright),CEOofKeppelCorporation,ProfessorLeoTan(centre),ChairmanoftheGardenCityFund,MrKennethEr(farleft),CEOofNParks,andMrChanHonChew(secondfromleft),CFOofKeppelCorporation,plantedtheOleabrachiata,avulnerabletreethatisnativetoSingapore.

3. MrGaryWatson(fifthfromright),CountryManager(Ireland)ofKeppelDataCentres,andothervolunteersparticipatedinthe‘DC’sforBees’tree-plantinginitiativeinWicklowCounty,Ireland.

MrLohChinHua,CEOofKeppelCorporation,said,“Keppeliscommittedtosustainability,bothasacompanyproviding solutions for sustainable urbanisation,andasaresponsiblecorporatecitizen.WehavecontributedbothtothedevelopmentandenvironmentalpreservationoftheSouthernWaterfrontwithourprojectsatKeppelBay.Today,wearegladtocontributebyplanting150trees,anature-

basedsolutiontofightclimatechange.Welookforwardtoworkingwithallstakeholderstobuildasustainablefuture.”

Creating safe habitats On25October2019,KeppelDataCentresparticipatedin‘DC’sforBees’,aninitiativebyHostinIreland,whichaimstoreversethe rapid decline of the bee population in Ireland through the creation of safe habitatsforbees.

About2,000saplingswereplantedbyvolunteersfromKeppelDataCentres,togetherwithparticipantsfrom19othercompaniesinthedatacentreindustry.Thesaplings,whichcompriseamixofnativeOak,BirchandRowan,willgrowintotrees that will provide food and shelterforanimals,birdsandinsects,includingbees.

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Caring for our community

Committed to being a good corporate citizen, Keppel continues to support initiatives that uplift communities.

Springing joySharing the joy of spring, some 40 Keppel Volunteers, led by Mr Loh Chin Hua, CEO of Keppel Corporation, together with Mr Ong Ye Kung, Minister for Education, and volunteers from Republic Polytechnic, distributed festive goodie bags to 330 families living in rental blocks in the Gambas district. Keppel also sponsored grocery vouchers for these families. Keppel Volunteers had earlier in the day helped pack the bags with food rations for the families.

This is the fourth consecutive year that Keppel has partnered the North West Community Development Council on its food distribution programme for residents in need.

Separately, Keppel Volunteers hosted 19 persons with special needs from Thye Hua Kwan Moral Charities to the Singapore Symphony Orchestra’s (SSO) annual Christmas Concert as part of the newly launched Keppel Nights@SSO programme. Held on

12 December 2019, the beneficiaries enjoyed orchestral pieces of popular carols and were treated to a tour of the concert hall.

Forging friendships Keppel Capital organised a prata-making session for its adopted charity Muscular Dystrophy Association Singapore (MDAS) on 8 November 2019. Conducted by Casuarina Curry, the fun-filled event introduced beneficiaries and volunteers to prata-making techniques.

The session ended with a delicious prata buffet and a prata tossing performance by the chef.

Over in China, 140 volunteers forged closer ties with special needs students from the Sunshine Welfare Home in Tianjin through completing a 3.5-km ‘Keppel Run’ on 6 November 2019.

Budding causeKeppel Volunteers held a three-day charity sale at the Trinity Tower in Shanghai to raise funds for the ‘Keppel Welfare Budding Dancers’ programme for hearing impaired children. The charity sale was attended by representatives from the Shanghai Charity Foundation, Shanghai Hongkou District Charity Foundation and Shanghai Hongkou District Federation of Industry and Commerce.

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1. Keppelites from across the Group packed and distributed goodie bags to needy families.

2. Mr Ong Ye Kung (far left), Minister for Education, accompanied by Mr Loh Chin Hua (third from right), CEO of Keppel Corporation and Mr Tan Swee Yiow (second from right), CEO of Keppel Land, distributed goodie bags to families in Gambas district.

3. Volunteers from Keppel Capital hosted MDAS beneficiaries in a prata-making activity.

4. Volunteers in Northern China continued to deepen friendships with special needs students from Sunshine Welfare Home.

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Volunteer appreciation

In conjunction with International VolunteerDay,KeppeliteswhoparticipatedactivelyintheGroup’sCSRactivitieswererecognisedfortheircontributions at the annual Keppel Volunteersappreciationdayheldon 3December2019.

CEOofKeppelCorporation,MrLohChinHua,presentedspecialawardsto20volunteersandencouragedthemtokeepupthegoodwork.HeremarkedthatKeppel’sbeneficiariesarenotthe

onlyoneswhogainfromoutreachefforts.Volunteerstoo,aretransformed,whentheycarefortheunderprivileged.

VolunteersfromtheWordsonWheelsandFoodfromtheHeartprojectssharedtheirexperienceandtakeawaysfromtheprojects.ThevolunteerswerealsoinspiredbyguestspeakersfromWillingHearts–FounderMrTonyTayanditsPresident,MrTehEngHua,whoprovidedinsights to the cause and the positive differencethatvolunteerscanmake.

1. VolunteersoftheYearwererecognised for their dedication and service to thecommunityat the annual Keppel Volunteers appreciationday.

2. ChildrenfromCareCorner celebrated ChristmaswithvolunteersfromKeppelLandand Keppel REIT Management.

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Season of giving

Keppel brought cheer to beneficiaries, tenants and staff in the Christmas season with various meaningful activities.

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Christmas by the bay PresidentHalimahYacobofficiatedthelight-upceremonyforChariTrees2019alongsidethepresenter,MarinaBayAlliance,on15November2019attheMarinaBaywaterfrontpromenade.Thefundraisingeventraisedatotalof$306,000forseveralcharities,includingTheBusinessTimesBuddingArtistsFund.

The 2019 edition of ChariTrees gained greatervisibilitythroughapartnershipwiththeMarinaBayAlliance,representedbystakeholdersoftheupcomingMarinaBaypilotBusinessImprovementDistrict(BID),whichincludesKeppelREIT,andtheMarinaBaypilotBIDManager,KeppelLand.

Festive bazaar AspartofKeppelLand’stenantengagementinitiativesforKeppelBayTower,theinaugural‘DoGood,FeelGoodChristmasBazaar’wasorganisedon28and29November2019.Thebazaar,whichsawparticipationfrom25charitiesandsocialenterprises,receivedwarmsupportfromtenantsandmembersofthepublicwhoshoppedforaworthycause.

OverinChina,theSino-SingaporeTianjinEco-CityInvestmentandDevelopmentCo.,Ltd.organisedausedgoodsbazaarattheEco-BusinessParkintheSino-SingaporeTianjinEco-City.Inadditiontoraisingfundsforneedyfamilies,

thebazaarpromotedgreenpurchasepracticesamongtenantswhocontributedandboughtpreloveditems.

Granting wishesKeppelLandandKeppelREITManagementralliedtenantsfromKeppel’scommercialproperties-OceanFinancialCentre,KeppelBayTowerandKeppelTowers-tofulfilthewishesof225childrenfromadoptedcharities,CareCornerandtheMuscularDystrophyAssociationSingapore(MDAS).ThechildrenalsoenjoyedChristmascarollingandgamesbyKeppelVolunteersatOceanFinancialCentreandKeppelBayTower.

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Picturesque Eco-City

Thenintheditionofthe‘DelightintheEco-City’photographycompetitionsawcloseto1,400entries,eachdepictinguniqueperspectivesoflivingintheSino-SingaporeTianjinEco-City(Eco-City).Sixwinning photographs showcasing various perspectivesofaprosperous,liveableandsmartEco-City,wereselected.

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‘Immerseintheworldofbooks’byLvShisen.

‘Aredbridgeoverthecreek’byLuHongyan.

Keppel Corporation Limited1 HarbourFront Ave,

Level 2, Keppel Bay Tower, Singapore 098632

Email: [email protected]: www.kepcorp.com/ekeppelite

a publication of keppel corporation · 2020. 2. 13. · 1 editor's note editor’s note 2020...

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