committed to sustainable developmentgrowing as onekeppel 24 spotlight on hse 32 committed to...

Issue 1 / 2017www.kepcorp.com/ekeppelite

MCI (P) 095/01/2017

Resilient amidst

headwinds 4

Growing as

OneKeppel 24

Spotlight on HSE 32

Committed to sustainable development

Keppelite I Issue 1 / 2017

Contents2

23 32

<< Cover image: Prime Minister of Singapore Mr Lee Hsien Loong (second from left) at the Keppel Discovery Wetlands. Accompanying him were Mr Lawrence Wong (in white, third from right), Minister for National Development and Second Minister for Finance; Dr Lee Boon Yang (third from left), Chairman of Keppel Corporation; and Mr Loh Chin Hua (far left), CEO of Keppel Corporation.

SUSTAINING GROWTHResilient amidst headwinds 4

First quarter in review 9

In conversation 11

Navigating challenges 12

Driving growth

Expanding footprint in Hong Kong 13

Continuing strong tenant-centric 14approach

Stable distributions

Keppel Infrastructure signs 15agreement with EDB to develop gasification facility in Singapore

Change in leadership 16

Strong execution 18

Forging partnerships in Vietnam 19

Ulu Pandan NEWater Plant upgrade

First delivery for 2017 20

Novation of Transocean rigs to 21Borr Drilling

Divestment of Keppel Verolme

Groomed from within 22

On the mark

Changes in leadership team at 23Keppel Land

SPECIAL FOCUSGrowing as OneKeppel 24

Project Autobots 27

New home for Keppel Capital 28

Spurring InnovationsFuture-focused office 29

Driving value creation 30

Charting new frontiers in 31technology

Steady progress

HSEMATTERSSpotlight on HSE 32

Charting progress in Tianjin Eco-City 34

Positioned for growth 36

Fruitful visit

EMPOWERING LIVESInspiring leadership 37

Sharing best practices

Insights for the future 38

Celebrating World Health Day

Keppelites Around the WorldFrom humble beginnings 39

NURTURING COMMUNITIESConserving our biodiversity 40

Encouraging green practices 43

Championing good causes 44

Spurring sporting excellence 45

Spreading cheer

Empowering the next generation 46

Keppel VolunteersMaking a difference 47

BACK PAGEKeppel Land increases stake 48in Saigon Centre

45

28

40


Sustaining Growth 3 Sustaining Growth 3

Editor’s Note

Dear Readers,

This issue marks Keppelite’s transition to a quarterly format. The move to a quarterly format is in line with the Group’s efforts to streamline our publications and increasingly take advantage of online platforms to communicate with stakeholders.

Keppelite was launched in 1985, and has continuously evolved over the decades to better address the needs of stakeholders. We are constantly working to improve Keppelite, and to enhance it as a valuable medium on all things Keppel.

In the same vein, this issue of Keppelite highlights an important annual occasion in Keppel’s efforts to engage employees – one of our key stakeholders – via the Global Keppelites Forum held on 9 February 2017. Themed ‘OneKeppel’, the annual townhall session reached over 2,600 Keppelites in close to 70 locations worldwide. At the session, CEO of Keppel Corporation, Mr Loh Chin Hua, spoke on his confidence in Keppel’s resilience as a multi-business company, and provided an overview of the Group’s immediate priorities, our progress towards Vision 2020 and our longer term goal of shaping a FutureKeppel (see pages 24 to 27).

We also highlight recent appointments within the Keppel Group. This is part of our succession planning, where Keppelites with the right skills and aptitude are identified and groomed for advancement to take on more challenging roles in the organisation (see page 22).

The issue wraps up with stories on how Keppel gives back to our local communities through social investments and collaborative community programmes. A key development in this area was the opening of the Keppel Discovery Wetlands on 31 March 2017. The event was graced by Prime Minister of Singapore Mr Lee Hsien Loong. Keppel Discovery Wetlands was established with a $2.08 million commitment from Keppel, which supported the restoration of a freshwater forest wetland ecosystem historically found in the vicinity of the Singapore Botanic Gardens (see pages 40 to 42).

On behalf of the team at Keppelite, thank you for your readership and support. We welcome ideas from you on how we can make Keppelite even better.

Keppelite Editor

Editorial Team

Editorial AdvisorHo Tong Yen

EditorSue-Ann Huang

Copy EditorsBrian Higgs, Song Jia Jia

Editorial TeamAng Lai Lee, Brian Lee,

Casey Chiang, Cheryl Goh,

Chua Sian Howe, Donald Sng,

Eileen Tan, Elizabeth Widjaja,

Gabriela Hott Soares, Grace Chia,

Guo Xiaorong, Han Sufen,

Hayley Teo, Hoo Yao Lin,

Ivana Chua, Jayne Yeo, Kevin Ho,

Lee Wan Jun, Liang Hui Hui,

Mia Liu, Priscilla Chong,

Razali Maulod, Ricky Ling,

Roy Tan, Serena Toh, Tang Yibing,

Tay Jia Wei, Teri Liew, Tracy Pham,

Woon Pek Yong, Yolanda Guo

Please mail your correspondence to:

Group Corporate Communications

– Keppelite Editor

Keppel Corporation Limited

1 HarbourFront Ave, #18-01

Keppel Bay Tower

Singapore 098632

Email: [email protected]

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4 Sustaining Growth


4 Sustaining Growth

Resilient amidst headwindsAnchored on its multi-business strategy, Keppel continues to stay resilient amidst the ongoing headwinds. Mr Loh Chin Hua, CEO of Keppel Corporation, discussed the Group’s strategic developments and performance at the Company’s 1Q 2017 results conference and webcast on 20 April 2017. Keppelite reproduces his speech.

TAPPING GROWTH IN SUSTAINABLE URBANISATIONAs we had caut ioned at the FY 2016 results announcement in January, desp i te the inc reased optimism in the market fol lowing the rebound in oil prices, the offshore business continues to face very challenging conditions. This is due to, among other factors, the oversupply of rigs and support vessels. It will take some time before the industry fully recovers.

N o t w i t h s t a n d i n g t h e headwinds, the Keppel Group has remained resilient, underpinned by our multi-business strategy, with different engines kicking in to steady the Group.

R a p i d u r b a n i s a t i o n , especially in Asia, is creating strong demand for energy, i n f r a s t r u c t u r e , c l e a n environments, high quality homes, offices and retail developments, as well as connectivity – needs for which the Keppel Group has been providing a range of solutions. While some of the industries that our businesses operate in may have their own cycles, sustainable urbanisation will provide

the Keppel Group with many years of secular growth.

FINANCIAL PERFORMANCEFor the first quarter of 2017, we achieved a net profit of $260 million, an increase of 23% over the same period in 2016. The drop in profit in the Offshore & Marine (O&M) Division was offset by improved earnings from the Infrastructure and Investments Divisions, while the Property Division continued to contribute steadily to the Group.

Economic Value Added (EVA) for the period was $23 million. On an annualised

basis, our Return on Equity (ROE) was 7.6%.

We had a smaller free cash outflow of $80 mil l ion compared with the outflow of $306 million in 1Q 2016. Our net gearing remained almost unchanged at 0.57x as at end-March 2017, compared to 0.56x as at end-December 2016.

MULTIPLE EARNINGS STREAMSRecurring income contributed $78 mil l ion or 30% of the Group’s net profit for 1Q 2017, underpinned by stable and fairly predictable income from our REITs and business trust, asset

management, infrastructure services and operations & maintenance, and rental & charter activities.

We are focused on improving the overall quality of our earnings and the Group’s recurring income, which will better fund our capital spending as well as dividends.

OFFSHORE & MARINE Amidst the cont inuing downturn, Keppel Offshore & Marine (Keppel O&M) managed to break even. The fall in net profit was due to the significantly lower volume of work. While the Division continued to make a profit at the gross operating level, it


Sustaining Growth 5

Continues on page 6...

was insufficient to cover our fixed costs. Contributions from associates helped the Division to break even. This shows the importance of the rightsizing efforts that Keppel O&M has embarked on since early 2015.

To keep our O&M Division lean and fighting fit, our rightsizing efforts have continued. We announced in January that we had mothballed two overseas yards and were in the process of closing three supporting yards in Singapore. We have ceased operations at our yard at Shipyard Road and returned it to JTC Corporation at the end of March. The closure of the other two yards will be announced later in the year.

To f u r t h e r o p t i m i s e operations and rationalise our global network of yards, Keppel O&M has entered into a term sheet agreement to divest Keppel Verolme, o u r s h i p y a r d i n t h e Netherlands, to Damen Shiprepair & Conversion B.V. We will continue to seize opportunities in Europe and the North Sea through our network of yards in Singapore and around the world.

In the first quarter, Keppel O&M further reduced its global direct workforce by about 1,250 or 6% compared to the previous quarter, through natural attrition, early termination of contracts and retrenchments. Since

the start of 2015, we have reduced our global direct workforce by close to 18,000 or about 49%. Following the latest reductions, the headcount in Keppel O&M is approaching a steady state that is appropriate for the level of work in our yards. Nevertheless, we will actively monitor market conditions as well as explore ways to achieve further cost savings and ensure that Keppel O&M remains profitable despite the reduced topline.

KEY DEVELOPMENTSKeppel O&M’s net orderbook as at end-March 2017 s tood at $3 .5 b i l l ion , excluding the projects for Sete. Our yards continue to execute the projects on our books safely, on time and on budget, and with the quality that our customers

have come to expect from Keppel.

Ear ly this year, Keppel Shipyard delivered a Floating Production Storage and Offloading (FPSO) vessel to Yinson Production which is on charter to ENI Ghana Exploration & Production.

In Brazil, our BrasFELS yard has marked the sailaway of the first of two Replicante p ro j e c t s , F P S O P - 6 6 , for delivery to Tupi BV, a consortium represented by Petrobras. Our workscope for the projects included the fabrication, integration, testing and commissioning o f t o p s i d e m o d u l e s . Meanwhile, work on the second Replicante, FPSO P-69, is progressing smoothly.

Other projects we are on track

to deliver shortly include the installation and integration of topside modules for a newbuild Catcher FPSO from BW Offshore and a newbuild semisubmersible for the State Oil Company of the Azerbaijan Republic. In mid-2017, we are also scheduled to deliver Golar Hilli, the first-of-its-kind floating liquefaction vessel conversion in the market.

Amidst the challenges facing the industry, we continue to work closely with our customers to seek win-win outcomes. We have reached an agreement with Fecon International Corp on the further deferment of its three KFELS B Class jackups, originally slated for delivery this year, to 2H 2019.

Keppel FELS signed a Heads of Agreement with Borr Drilling for the novation of Transocean’s five newbuild jackup contracts to Borr Drilling

6 Sustaining Growth


...continued from page 5.

Keppel FELS has also entered into a Heads of Agreement with Borr Drilling for the contracts of Transocean’s five jackup rigs to be novated to Borr Dri l l ing. Under the new agreement, Borr Drilling will take over the contracts, make a down payment of US$275 million and undertake the remaining payment instalments to Keppel FELS. The delivery of the first three rigs has been brought forward to 2017 and 2018, while the remaining two rigs will be delivered in 2020.

The deal, beyond improving Keppel O&M’s cashflow, is a testament to the strong d e m a n d f o r K e p p e l ’s proprietary rigs, even in the present market conditions.

PROPERTYOur P roper t y D i v i s ion made a ne t p ro f i t o f $ 1 0 3 m i l l i o n f o r 1 Q 2017, down slightly from $106 million in 1Q 2016.

Leveraging our first-mover advantage in Vietnam, we are deepening our presence in this growth market, with an increased stake in the Saigon Centre development in Ho Chi Minh City. This reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in Vietnam through our quality portfolio of properties. We have also signed a Memorandum of Understanding, in the presence of the pr ime ministers of Singapore and Vietnam, with Vietnam’s

State Capital Investment Corporation to collaborate on investment opportunities in the country.

I n Yangon , Myanmar, another market which Keppel Land has been in for many years, we have opened the 23-storey Grade A office tower in Phase One of the Junction City development. This was jointly developed with the Shwe Taung Group, and has received positive interest from international tenants.

In Indonesia, in line with the Group’s strategy to recycle assets to seek higher returns, Keppel Land has divested its 80% effective stake in a Surabaya property company, achieving a net

profit of about $29 million. We will continue to explore opportunities to scale up our presence in Greater Jakarta.

In China, we have completed the sale of our stakes in the Chengdu and Wuxi townships which will allow us to channel our capital to other projects.

HOME SALESKeppel Land sold 980 homes in the first quarter, with a total sales value of about $530 million. Our overall sales volume was about 4% higher year-on-year, comprising 730 homes in China, 110 in Vietnam and 130 in Singapore.

Home sales in China slowed slightly in part due to the

The Glades in Tanah Merah by Keppel Land, comprising 726 homes jointly developed with China Vanke, continues to receive positive response from homebuyers


Sustaining Growth 7


property market cooling measures and also because fewer new homes were l aunched i n the f i r s t quarter.

Meanwhile, home sales in Singapore have picked up. The Glades, comprising 726 homes jointly developed with China Vanke in Tanah Merah, is about 94% sold, while homes at Highline Residences are close to 66% sold and those at Corals at Keppel Bay are about 64% sold. Our projects continue to receive interest from discerning homebuyers, with a penthouse at Corals sold in 1Q 2017 for about $18.9 million.

PROPERTY PORTFOLIOKeppel Land is in a favourable position of having a large landbank comprising over 64,000 homes across key cities in Asia. We are not in a hurry to acquire land, and will only do so at a land price that will provide an acceptable risk-adjusted return.

Of the 64,000 homes in our pipeline, about 18,000 homes are ready for launch from now till 2019, and we have over a million sm of gross floor area under d e v e l o p m e n t i n o u r commercial portfolio. The commercial projects will be progressively completed and contribute to our recurring income, revaluation gains and eventually, divestment gains when we monetise the assets.

INFRASTRUCTURE P o i s e d t o b e c o m e a stable contributor to the G ro u p ’s b o t t o m l i n e , Keppel Infrastructure has been act ive ly pursuing opportunities in energy a n d e n v i r o n m e n t a l infrastructure, both in Singapore and overseas.

Keppel Infrastructure’s net profit for 1Q 2017 was $30 m i l l i on , up f rom $ 1 0 m i l l i o n y e a r- o n -year including gains on divestment of our stake in GE Keppel Energy Services to GE Singapore. This is in line with our strategy to divest non-core assets and recycle capital to pursue other opportunities.

Keppe l I n f r a s t r u c tu re b e g a n t h e y e a r w i t h

the s igning of the 25-y e a r Wa t e r P u r c h a s e Agreement with PUB, the nat ional water agency, for S ingapore’s fourth desal ination plant. The plant is now going through detailed engineering and is in the process of obtaining the relevant permits. It is expected to commence operations in 2020.

I n M a r c h , K e p p e l Infrastructure completed the treatment capacity upgrade of the Keppel Seghers Ulu Pandan NEWater P lant ahead of schedule and on budget. This is the first large-scale NEWater plant in Singapore to adopt a third-stage reverse osmosis configuration.

Keppel Infrastructure has

just concluded an agreement w i t h t h e S i n g a p o r e Economic Development Board to develop, own and operate a state-of-the-art gasification facility on Jurong Island in Singapore. Securing the agreement for development of the Facility is an important step in the preparation for the final investment decision, which will be taken at a later date.

The Faci l i ty, now in its p r o j e c t d e v e l o p m e n t phase, wi l l use proven and reliable best-in-class technologies to produce h y d r o g e n , c a r b o n monox ide, syngas and other industrial gases from a var iety of feedstock,

Keppel Infrastructure signed a 25-year Water Purchase Agreement with PUB, the national water agency, for Singapore’s fourth desalination plant

8 Sustaining Growth



including coal and refinery by-products. I t is wel l-posit ioned to meet the anticipated future demands of Singapore’s ref ining and chemicals industries and re inforces Keppe l Infrastructure’s capability as a solutions provider for sustainable development.

Data centres continue to be an important growth business for the Group. This month, Keppel Data Centres and Hong Kong’s PCCW Global launched the PCCW Global-Keppel International Carrier and Exchange in Hong Kong. The collaboration leverages PCCW Global’s extensive global network connectivity and marks the expansion of Keppel Telecommunications & Transportation’s data c en t re f oo tp r i n t i n to Hong Kong.

INVESTMENTSKeppel’s fourth vertical, Investments, continues to contribute steady and recurring income streams.

Our asset management business recorded a net profit of $13 million for 1Q 2017, compared to $15 million in the same quarter last year.

Besides actively seeking new investment opportunities, Alpha Investment Partners also focuses on divestment activities to lock in and de l i ve r re tu r ns to i t s investors. During the first quarter, Alpha-managed funds divested a total of four

assets in Singapore, Japan and Korea.

In January, Keppel DC REIT completed its acquisition of Keppel DC Singapore 3, which will be its third asset in Singapore.

A s t h e 3 0 - s q k m S ino-S ingapore T ianj in Eco-City matures, we are seeing increasing demand for its land and homes. Land in the Eco-City can be developed directly by our 50-50 joint venture master developer Sino-Singapore Tianjin Eco-City Investment and Development Co. Ltd; or by Keppel Land or our Chinese partner, Tianjin Eco-City Investment and Development Co., Ltd; or it can be jointly developed with third parties, or sold to others for development.

We reported in January 2017 that our joint venture had sold three land parcels at a land auction. Such land sales are inherently lumpy and may not be repeated in every quarter. The prices of land and homes can also be affected by the Ch inese government ’s property cooling measures. Nevertheless, the land sales made a notable contribution to the Keppel Group in this quarter, and reflects the long-term potential of the Tianjin Eco-City project.

SEIZING OPPORTUNITIES IN SUSTAINABLE URBANISATIONThe Tianjin Eco-City is a good example of how different

businesses in the Keppel Group can work together to provide comprehensive solutions for sustainable urbanisation. We are seeking more growth opportunities, building on our competencies and deepening collaboration across verticals.

Keppel O&M is pushing into new markets and revenue sources. Gas will be an important market of the future, and we are priming Keppel O&M to be an industry leader with an extensive gas strategy that spans the value chain. We are actively pursuing opportunities in small-scale liquefied natural gas vessels with our customers and partners. We see many opportunities in this space, especially where Keppel-built carriers and regasification units can be deployed alongside small gas-fired power units.

We are also re-purposing our offshore technology for applications in other areas including floating infrastructure assets.

Capitalising on the substantial residential landbank and commercial portfolio that we have built up over the years, Keppel Land is positioning itself as a multi-dimensional real estate player. We have built an enviable landbank over the past decade while still keeping Keppel Land’s average ROE high at 18.4% per annum. To continue to aim for the highest ROE in the industry, we will have to work

our assets harder to generate higher returns, as well as seize opportunities through st rategic partnersh ips . Where appropriate, we could also buy completed properties and create value through asset enhancement strategies, and invest in operating platforms.

In the infrastructure space, we a re s t rengthen ing our positions in energy a n d e n v i r o n m e n t a l infrastructure, as well as data centres and logistics. The recent desalination and gasification projects are examples of how we are expanding our breadth of expertise and the range of solutions we provide.

Keppel Capital will continue to expand our capital base wi th co- inves tors and work closely with the rest of the Group to drive the development of real assets. It will support our business model through growing our recurring income, as well as provide a platform for capital recycling.

With agility and financial discipline, we are confident that we can harness our synergies as a multibusiness g r o u p t o c a p t u r e opportunities in sustainable urbanisation. keppelite


Sustaining Growth 9

First quarter in reviewMr Chan Hon Chew, CFO of Keppel Corporation, presented the Company’s financial performance at the 1Q 2017 results conference and webcast. Keppelite reproduces his speech.

In the first quarter, the Group recorded a net profit of $260 million, which was 23% higher than the same quarter last year. Correspondingly, earnings per share (EPS) increased to 14.3 cents.

E VA w a s h i g h e r a t $23 million, and annualised ROE increased to 7.6%.

Free cash outf low was $80 million as compared to free cash outflow of $306 million in the first quarter of 2016 due mainly to a slowdown in working capital increases in O&M.

Net gearing at 57%, was at about the same level as at the end of financial year 2016.

FINANCIAL HIGHLIGHTSThe Group’s revenue for the first quarter was 28% or $495 million lower than the same quarter last year. Lower revenue from the O&M and Property Divisions were partially offset by higher revenue from the Infrastructure Division.

As a resul t , operat ing profit for the quarter at $187 million was lower by 33% or $91 million. Lower profits from the O&M and Property Divisions were

FINANCIAL HIGHLIGHTS

S$m 1Q 2017 1Q 2016 % Change

Revenue 1,248 1,743 (28)

Operating Profit 187 278 (33)

Profit before Tax 346 278 24

Net Profit 260 211 23

EPS (cents) 14.3 11.6 24

partially offset by higher profits from the Investments and Infrastructure Divisions.

Despite lower operating profit, profit before tax i n c rea sed by 24% or $68 million due to higher s h a re o f p ro f i t f ro m associates, in particular the share of gains from the divestments of Central Park City in Wuxi and The Botanica in Chengdu, as well as contributions from the Sino-Singapore Tianjin Eco-City from the sales of three land parcels.

After tax and non-controlling interests, net profit was higher by 23% or $49 million, translating to an EPS of 14.3 cents.

SEGMENTAL REVIEWAt the Group level, revenue at $1,248 mi l l ion was 28% lower than the same quarter last year, led by lower revenues from the O&M Division as a result of lower volume of work and deferment of some projects.

The Property Division too saw lower revenues, due mainly to the absence of revenue from Eight Park Avenue in Shanghai, which obtained Occupancy Permit in the first quarter last year,

and lower revenue from The Glades, which obtained Temporary Occupat ion Permit in December 2016. This was partly offset by higher revenue from the handover of completed units in the Waterfront Residences in Wuxi and higher revenue recognition from construction progress in Highline Residences in Singapore.

The Infrastructure Division’s revenue rose by 20% due to increased sales in the power and gas business.

T h e G r o u p r e c o r d e d $346 million of pre-tax profit for the first quarter of 2017, 24% or $68 million higher than last year.

Due to the year-on-year drop in revenue, the O&M Division was just able to break even, compared to the

$122 million pre-tax profit last year.

The Property Div is ion’s pre-tax profit was 11% or $15 million lower than in the corresponding quarter in 2016, as a result of lower operating results, partly offset by higher share of profits from associates as a result of gains from the divestment of stakes in trading projects, namely Central Park City in Wuxi and The Botanica in Chengdu.

The Infrastructure Division registered a $19 million increase in pre-tax profit, due to higher contributions from the power and gas business as well as the gain from the divestment of GE Keppel Energy Services.


10 Sustaining Growth


Pre-tax profit from the Investments Division of $181 million was driven mainly by higher share of profit from the Sino-Singapore Tianjin Eco-City arising from the sales of three land parcels, write-back of provision for impairment of investments, recognition of fair value gains on KrisEnergy warrants, and profit on the sale of investments, partly offset by share of loss in KrisEnergy.

After tax and non-controlling interests, the Group’s net profit increased by 23% or $49 million to $260 million as compared to the same period in 2016, with the Investments Division being the top contributor to the Group’s earnings at 48%, followed by the Property Division at 40% and the Infrastructure Division at 12%.

The Group’s net profit of $260 million for the quarter translated to an EPS of 14.3 cents, 24% higher than the first quarter of last year.

FREE CASH FLOWCash flow from the Group’s operations was $118 million in this quarter, down from $342 million in the same quarter of last year.

Net cash outf low from operating activities was $9 million, as compared to an outflow of $335 million in the first quarter of 2016. This was due mainly to a slowdown in working capital increases in O&M.

Net cash outf low from investing activit ies was $71 mil l ion compris ing advances to associated companies and operational capi ta l expenditure of $117 million, partly offset


by dividend income from associated companies and divestment proceeds.

As a result, there was an overall free cash outflow of $80 million during the quarter, a $226 mill ion decrease from the free cash outflow of $306 million in the same period in 2016. keppelite


Sustaining Growth 11

In conversationKeppelite shares highlights of Keppel Corporation’s 1Q 2017 results Question & Answer session, where senior management addressed issues and concerns of the financial community.

Q: Why did O&M revenue come down so much in 1Q 2017? LCH: The lower O&M revenue was due to lower volume of work. As the volume of work was low, the gross operating profit was not sufficient to entirely cover our fixed costs. This a l so demonstrates the importance of our rightsizing efforts, which we have been executing since 2015.

Q: Under which division does the “project based” earnings of $125 million come from? CHC: The “project based” earnings are mainly from the O&M Division, as well as the Property Division’s sale of residential homes.

Q: Can you provide a breakdown of the $150 million on the write-back of impairments, gain on disposal of subsidiaries & associates and gain on investments disclosed in your financial statement?CHC: The $150 mil l ion comprises three parts – 1) the write-back on the impairments for KrisEnergy

amounting to $46 million; 2) the divestment of our associate, GE Keppel Energy Services; and 3) the gain on disposal of subsidiaries and associates such as Central Park City in Wuxi and The Botanica in Chengdu.

Q: Can you elaborate on the $46 million write-back on impairments of investments? What changed during the quarter to allow the write-back?CHC: The $46 mi l l ion wr i te-back perta ins to KrisEnergy. As KrisEnergy is our associated company, we equity account for our share of its results. Given that KrisEnergy is a listed company, there is a one quarter time lag in our equity accounting of its results. In 1Q 2017, we recognised our share of KrisEnergy’s loss for 4Q 2016, which amounts to about $90 million.

Given that we made a provision for the impairment of KrisEnergy in 2016, we have to write back the provision after equity accounting for our share of losses. Otherwise, it would be double counting.

Even after the write-back of the provision, there was still a net share of loss this quarter for KrisEnergy.

Q: How many Singaporeans have been let go in your rightsizing efforts since 2015 and in 1Q 2017? Are you expecting further staff reduction in the next quarter? LCH: For the first quarter of 2017, Keppel O&M reduced its workforce by 1,246 or by about 6% from the previous quarter. We do not give a breakdown of the different nationalities, and I think it is not pertinent as far as our results are concerned. What is more important is that we are approaching a steady state. But of course, we will have to monitor this closely to ensure that our workforce is appropriately sized for the work that we can see going forward.

Q: How has your order inflow in the O&M Division been so far this year? CO: For the order inflow in 1Q 2017, we have Jan De Nul exercising its option for the th i rd dredger.

Moving forward, the team is working hard to pursue other opportunities in terms of liquefied natural gas, specialised vessels, Jones Act vessels and also repurposing our offshore technology for non-drilling applications. keppelite

LCH – Mr Loh Chin Hua,

CEO of Keppel Corporation

CHC – Mr Chan Hon Chew,

CFO of Keppel Corporation

CO – Mr Chris Ong,

Acting CEO of Keppel

Offshore & Marine



Driving growthKeppel DC REIT achieved $21.8 million of distributable income for the first quarter ended 31 March 2017, 47.6% higher than the same period last year. Correspondingly, its distribution per unit of 1.89 cents was 13.2% higher than the same period last year.

No d i s t r ibut ions were declared for the quarter as Keppel DC REIT declares distributions on a half-yearly basis.

The year-on-year increase in distributable income was contributed by the one-off capital distribution in relation to the Keppel DC Singapore 3 acquisition, income from the acquisitions announced last year, as well as lower property-related and other expenses.

Keppel DC REIT completed the acquisition of 90% interest in Keppel DC Singapore 3, adding a third asset in Singapore on

20 January 2017. The REIT also obtained tax transparency treatment for its share of the taxable income arising from the 90% interest, similar to Keppel DC Singapore 1 and 2.

As at 31 March 2017, the REIT’s portfolio occupancy rate was 95.1% with a long weighted average lease expiry of 9.2 years. A major contract at one of the Singapore colocation assets, which was expiring in

2017, has been renewed for five years.

The Manager rema ins conf ident of the data centre market’s growth potential underpinned by the increasing demands of the digital economy and data centre outsourcing requirements. keppelite

Navigating challengesKeppel Telecommunications a n d Tr a n s p o r t a t i o n (Keppel T&T) posted lower revenue for the quarter ended 31 March 2017, s l i p p i n g 1 5 . 6 % t o $40.7million from $48.3 million in the same period last year.

Net profit for the same period fell by 13.1% to $11.6 million due to lower contribution from the data centre division arising from disposal of subsidiaries and weaker performance from the logistics division, partly offset by higher share of

profits from associated companies. The subsidiaries disposed were subsequently equity accounted at the Group.

Earnings per share for the period was 2.1 cents while net asset value per ordinary share was $1.44 at 31 December 2016.

While outlook for the logistics division remains challenging due to slowing economic and trade growth as well as margin pressures from intense market competition, the division continues to explore and seize new opportunities. The division recently rolled out last mile delivery services with a key

healthcare account, using Courex’s crowd-sourcing platform, and will continue to pursue and capture growth in e-commerce fulfilment and urban logistics.

The data centre division’s footprint will increase by 195,000 sf of gross floor area with the completion o f the PCCW Globa l -Keppel International Carrier Exchange (Hong Kong) and the expected completion of Keppel DC Singapore 4 in 2Q 2017. In Europe, the division is taking over the operations at Keppel DC Frankfurt 1 and is engaging potential customers to fill up the remaining space. keppelite

The logistics division rolled out last mile delivery services with a key healthcare account, using Courex’s crowd-sourcing platform



Expanding footprint in Hong KongK e p p e l D a t a C e n t re s and PCCW Global have l a u n c h e d t h e P C C W Global-Keppel International Carr ier Exchange ( ICX) i n t h e i n t e r n a t i o n a l telecommunications hub of Hong Kong to provide faster interconnects for businesses.

Keppel Data Centres is a joint venture between Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land while PCCW Global is the international operating division of HKT, Hong Kong’s premier telecommunications service provider.

The PCCW Global-Keppel ICX is based on robust design requirements and features more than 7,800 sf o f ded ica ted network facility management space with redundant power configuration.

The ICX is located in the same building as the AAE-1 city Point of Presence (PoP) and is connected to the submarine cable landing stations of Hong Kong and other hyper- scale data centres via an extensive fibre network supplied by HKT. The optimal and secure global network connectivity meeting point makes it a preferred choice for companies looking to establish network edge PoP.

K e p p e l D a t a C e n t re s and PCCW Global had entered into a long-term collaboration agreement for the development of the ICX last year. The collaboration seeks to utilise the vast submarine cable capacity in the region to provide fast, quality interconnections with Asia, the Middle East, Africa, Europe and North America.

Leveraging Keppel Data Centres’ technical expertise and operat iona l t rack record and PCCW Global’s extensive global network

connectivity, the ICX venture aims to address the demand for access performance and network security arising from cloud services, big data, and rich media in business critical applications.

Mr Thomas Pang, CEO of Keppel T&T, said, “The ICX marks Keppel T&T’s first step into the Hong Kong data centre market and brings together the best that PCCW Global and Keppel Data Centres have to offer under one roof. Customers in our ICX will enjoy connectivity to the city PoP of the AAE-1

Launching the PCCW Global-Keppel International Carrier Exchange were (from L-R), Mr Sunny Yeung, SVP, Global Services & Operations, PCCW Global; Mr Frederick Chui, SVP, Global Data Sales and Presales, PCCW Global; Mr Marc Halbfinger, CEO, PCCW Global; Mr Thomas Pang, CEO, Keppel Telecommunications & Transportation; Ms Tan Lee Kheng, GM, Technical Solutions, Keppel Data Centres; and Mr Jonathan Sim, Head, Business Development (North APAC), Keppel Data Centres

cable as well as the global network of data centres of both companies.”

Mr Marc Halbfinger, CEO of PCCW Global, said, “We are very pleased to see the exciting ICX opening which highlights our very positive relationship with Keppel T&T. Our customers and carrier partners now have more low-latency Hong Kong Island choice in accessing digital solutions for responding to the increasing cloud adoption in the region.” keppelite



Stable distributionsKeppe l I n f r a s t ru c tu re Trust (K IT ) announced a distribution per unit of 0.93 cents for the first quarter ended 31 March 2017.

Group revenue for the first quarter was $155.3 million, 18.3% higher than the same period last year, due to higher contributions from City Gas as a result of higher town gas tariff and higher volume of town gas sold; higher facility fees from Basslink as no facility fees were recognised in 1Q FY16

during the cable outage between 20 December 2015 and 12 June 2016; and higher revenue from Keppel Merlimau Cogen (KMC).

However, these were partially offset by lower contributions from the Concessions for the waste-to-energy (WTE), NEWater and desalination plants as the 1Q FY16 revenue inc luded cons t ruc t ion revenue recognised from the Senoko WTE plant boiler upgrade.

KIT’s distr ibutable cash flows for the quarter ended 3 1 M a r c h 2 0 1 7 w a s $34.2 mill ion. This was $5.9 million lower than the same period last year due to time lag in the adjustment of gas tariffs to reflect actual fuel cost at City Gas and abortive expenses incurred by the Trust in connection with a potential acquisition, partially offset by higher contribution from KMC.

P ro f i t a t t r i bu tab l e to Unitholders of the Trust in

1Q FY17 was higher than the same period last year due to higher contributions from Basslink and KMC, coupled with lower depreciation and amortisation expenses. These were partially offset by lower contribution from City Gas due to the time lag in the adjustment of gas tariffs to reflect actual fuel cost.

CityNet was also replaced as t rustee-manager of NetLink Trust with effect from 3 April 2017. keppelite

Continuing strong tenant-centric approachKeppe l RE I T ach ieved $48.1 million in distributable income for 1Q 2017, 11.6% lower year-on-year (y-o-y) due mainly to absence of income from the divested 77 King Street in Sydney in January 2016, lower income contribution from Bugis Junction Towers, as well as absence of other gains distribution.

P ro p e r t y i n c o m e a n d net property income for 1Q 2017 also decl ined correspondingly. Distribution per unit for the quarter was 1.45 cents, translating to an annualised distribution yield of 5.5%.

For 1Q 2017, share of results of associates grew 23.2% y-o-y to $23.1 million due mainly to one-off income from One Raffles Quay and Marina Bay Financial Centre. Share of results of joint ventures increased 22.2% y-o-y to $8.3 million as a result of higher income contribution from David Malcolm Justice Centre in Perth. All- in interest rate was 2.57%, with interest coverage rat io and aggregate leverage at 4.6 times and 38.4% respect ively as at end- 1Q 2017.

Notwithstanding that the

REIT has no refinancing requirements till 2018 and beyond, the Manager is proactively reviewing early refinancing of loans, as well as exploring attractive funding sources.

Despite the oversupply in the office market, the Manager ’s cont inuous tenant engagement efforts have resulted in the REIT achieving a portfolio tenant retention rate of 87% and high committed portfolio occupancy of 99.4% as at end-March 2017. The REIT has minimal leasing risks for 2017, with only 2.8% and 1.7% of leases

(by net lettable area) due for renewal and review respectively.

L o o k i n g a h e a d , t h e Manager is cognisant of the uncertain global economic environment and competitive office leasing landscape in Singapore.

The Manager will continue i t s proact ive port fo l io management and prudent c a p i t a l m a n a g e m e n t approach, and remains committed to a portfolio optimisation strategy to provide sustainable returns to Un i tho lder s in the long term. keppelite



Keppel Infrastructure signs agreement with EDB to develop gasification facility in SingaporeKeppel Infrastructure (KI) has signed an agreement with the Singapore Economic Development Board (EDB) t o deve lop , own and operate a state-of-the-art gasification facility on Jurong Island, Singapore.

The agreement marks t he cu lm ina t i on o f a compe t i t i v e s e l e c t i on process conducted by EDB as part of the Jurong Island v2.0 initiative. Securing the agreement for development of the facility is an important step in preparation for the final investment decision, which will be taken at a later date.

The facility, now in its project development phase, will use proven and reliable best-in-class technologies to produce hydrogen, carbon monoxide, syngas and other industrial gases from a variety of potential feedstock, including coal and refinery by-products. As part of its commitment to sustainability, KI will also develop energy-efficient and R&D projects to augment the facility.

The facility will be well-positioned to meet the anticipated future demands

of Singapore’s refining and chemicals industries.

A significant development is the global sulphur cap of 0.5%, announced by the International Maritime Organ izat ion ’s Mar ine Environment Protection Committee, requiring all ships to comply with the reduced (from 3.5%) sulphur emissions limit by 1 January 2020. As the refining industry in Singapore adopts the production of low sulphur compliant fuel, there will be increased demand for hydrogen from existing and new customers.

“ U n d e r t h e J u r o n g Island v2.0 initiative, we e x p l o r e d a l t e r n a t i v e f e e d s t o c k o p t i o n s t o enhance the long-term competitiveness of the energy and chemicals sector,” said Mr Damian Chan, ED, Energy & Chemicals, EDB.

“After extensive evaluation, we found that gasification would be able to meet indust ry ’s demand for competitive hydrogen and carbon monoxide, while the use of best-in-class mitigation technologies w o u l d m i n i m i s e i t s environmental impact.”

Dr Ong Tiong Guan, CEO of KI , sa id, “With the support of EDB, Keppel Infrastructure is pleased to be work ing on the development of this facility which will leverage various feedstock and synergies with available infrastructure to deliver competitively p r i c e d p r o d u c t s t o customers. It also reinforces Keppel Infrastructure’s capability and commitment as a solutions provider for sustainable development.” keppelite

Signing the agreement to develop a gasification facility are (from left): Dr Ong Tiong Guan, CEO of Keppel Infrastructure, and Mr Damian Chan, ED, Energy & Chemicals, Singapore Economic Development Board



Change in leadership

KEPPEL OFFSHORE & MARINEMr Chris Ong, MD of Keppel FELS, has been concurrently appointed Acting CEO of Keppel Offshore & Marine ( K e p p e l O & M ) w i t h effect from 1 April 2017. Mr Ong succeeded Mr Chow Yew Yuen, who retired on 31 March 2017 a f t e r 36 years of service with the Keppel Group.

Mr Loh Chin Hua, CEO of Keppel Corporat ion and Chairman of Keppel O&M, said, “Chris is part of the talent pool which we have been nurturing for leadership succession at Keppel O&M. He has been with the Keppel Group for 17 years , and has contributed significantly to building Keppel FELS into

the global leader in the offshore business that it is today.

“On behalf of the Board of Keppel O&M, I welcome Chris in his new role. I am confident that he will provide effective leadership to Keppel O&M in the next stage of the company’s development.”

Mr Ong, 42, joined Keppel FELS in 1999, and has held a range of key appointments in Keppel FELS, including GM (Engineering), Acting E D ( O p e r a t i o n ) , E D (Commercial) and Deputy MD, before being appointed MD of Keppel FELS on 5 July 2016.

Apart f rom his ro le in Keppe l FELS , Mr Ong

i s t h e C h a i r m a n o f Bennett Offshore, Keppel LeTourneau USA, Bintan Offshore Fabricators and Keppel SLP and a director of various subsidiaries or associated companies of Keppel O&M.

Mr Ong is also a board member of the Institute of Technical Educat ion Board of Governors, and a member of the Association o f S i n g a p o re M a r i n e Industries, Workplace Safety & Health Council Marine Indust r ie s Commit tee , and U EnTech Steer ing Committee.

Mr Ong has a Bachelor and Master Degree in Electrical and Electronics Engineering f r o m t h e N a t i o n a l University of Singapore. He is a Chartered Engineer, a Fellow of the Institute of Marine Engineering, Science and Technology, and a member o f the A m e r i c a n B u r e a u o f Shipping.

In addition, Mr Paul Tan, Group Controller of Keppel Corporat ion, has been concurrently appointed as CFO of Keppel O&M with effect from 1 April 2017.

Mr Tan joined the Keppel Group in 1980 and has held various management positions within the Group. Since 1988, he has been

responsible for the Group A c c o u n t s f o r K e p p e l Corporation.

M r Ta n s u c c e e d e d M r Wo n g N g i a m J i h , w h o r e t i r e d a s C F O o f K e p p e l O & M o n 31 March 2017 after over 40 years of service with the Keppel Group.

Mr Paul TanMr Chris Ong



Mr Tan Swee YiowMrs Penny Goh

KEPPEL REIT MANAGEMENTKeppel REIT Management has appointed Mrs Penny Goh as Chairman of its Board from 22 April 2017. Mrs Goh, 64, takes over from Dr Chin Wei-Li, Audrey Marie, 59, who will step down from the Board after more than 12 years of service. Dr Chin has served on the Board since 3 February 2005.

Mr Tan Chin Hwee, 45, who

Mr s Goh ha s been a n o n - e x e c u t i v e a n d independent director of the Manager since 5 October 2016. She is currently the Co-Chairman and Senior Partner of Allen & Gledhill LLP, a leading law firm in Singapore. She has been a Partner since 1982 and has headed the Corporate Real Estate Department for many years.

Mrs Goh regularly acts for listed corporations, private equity funds and real estate investment trusts, and has extensive experience in advising on corporate real estate transactions involving major commercial projects in Singapore and Asia Pacific.

Keppel REIT Management has also welcomed one of its founding leaders back to take the helm.

Mr Tan Swee Yiow, 56, has been appointed CEO and Executive Director of Keppel REIT Management, the manager of Keppel REIT, effective 20 March 2017.

As the pioneer CEO of Keppel REIT Management when the REIT was listed in April 2006, Mr Tan played an instrumental role in the early years of the REIT’s growth. Mr Tan has been with the Keppel Land group since 1990. Prior to his most recent appointment as CEO of Keppel REIT Management, h e w a s P r e s i d e n t o f Singapore for Keppel Land and concurrently Head of Keppel Land Hospitality Management. He oversaw Keppel Land’s investment and development operations in Singapore, as well as its hospitality management arm. keppelite

Fuel for thoughtNothing is predestined. The obstacles of your past can become the

gateways that lead to new beginnings.

Ralph Blum, writer

has been a Director since 14 September 2010, will also step down from the Board after serving for almost seven years. Professor Tan Cheng Han, 52, who has served on the Board for more than four years, will also relinquish his seat to assume his appointment as Chairman of Singapore Exchange Regulation Pte Ltd. Both Mr Tan and Professor Tan will step down from 1 July 2017.



Strong executionFocusing on execut ion excellence, BrasFELS has del ivered a number of milestone projects for Brazil’s offshore oil and gas industry. In the first quarter of 2017, the shipyard added to its strong track record with the departure of the Floating Production Storage and Offloading (FPSO) vessel P-66 from its facilities, as well as the delivery of the well-intervention vessel Siem Helix I.

FPSO P-66On 4 February 2017, P-66, the first of the Replicante series of FPSO units, left BrasFELS to be deployed in the Lula Sul field in Santos Basin, Brazil.

FPSO P-66 is BrasFELS’ project for Tupi BV, a consortium c o m p r i s i n g P e t r ó l e o Brasileiro S.A. – (Petrobras), BG E&P Brasil – a subsidiary of Royal Dutch Shell plc, and Petrogal Brasil.

BrasFELS was engaged for two Replicante projects, P-66 and P-69. The shipyard’s work scope for the projects includes the fabrication, integration, testing and commissioning of topside modules. The Replicante FPSOs are a series of FPSOs of s im i la r des ign and specifications ordered by Petrobras for the Santos Basin pre-salt region.

Mr Kwok Kai Choong, CEO and President of Keppel FELS Brasil, said, “We are proud to partner Petrobras on the Replicante projects and deliver the FPSO P-66 to their highest satisfaction. It will add to Keppel’s track record of delivering more than 30 safe and successful major projects for Brazil. Work on the second Replicante FPSO, P-69, is progressing well and we look forward to continuing to work with Petrobras as their choice shipyard in tapping Brazil’s vast oil and gas resources.”

FPSO P-66 has a production

capacity of 150,000 barrels of oil per day and six million m3 of gas per day. I t also has a storage capacity of 1.6 million barrels of oil.

B rasFELS has bu i l t up extensive capabilities and experience in FPSO projects over the years. Including FPSO P-66, the shipyard has completed seven FPSO projects since 2010.

SIEM HELIX ISiem Hel ix I arr ived at BrasFELS on 26 December 2016 for upgrading works. The we l l - i n t e r ven t i on vessel is the shipyard’s first

project for Helix Energy Solutions.

The work scope comprises the design, fabrication and installation of a bulk transfer system as well as a new mezzanine deck. In addition, the shipyard undertook the zone reclassification of the mud pit room.

Siem Helix I departed from BrasFELS on 8 March 2017. It is slated for operations in Santos Basin, located within Braz i l ’s pre-sa l t region. keppelite

P-66, the first of the Replicante series of FPSO units, left BrasFELS for deployment in the Lula Sul field, Santos Basin, Brazil



Forging partnerships in VietnamK e p p e l L a n d s i g n e d a M e m o r a n d u m o f Understanding (MOU) with Vietnam’s State Capital Investment Corporation (SCIC) on 23 March 2017 in Hanoi. The MOU will see the two companies collaborate

on investment opportunities in Vietnam.

The MOU was signed by Mr Ang Wee Gee, CEO o f Keppe l L and , and Mr Nguyen Duc Chi, Chairman of SCIC. Witnessing the

signing were the Prime Minister of S ingapore, Mr Lee Hsien Loong, and the Prime Minister of Vietnam, Mr Nguyen Xuan Phuc.

Mr Ang said, “Vietnam is one of Keppel Land’s key growth markets where we are committed to deepen our presence . We are constantly on the lookout for strategic alliances with like-minded partners to grow our business.

“This win-win partnership will see Keppel Land and SCIC collaborate on projects in Vietnam, and put Keppel Land in good stead as we look towards scaling up our presence in the country.”

In Vietnam, Keppel Land is one of the largest and pioneer foreign real estate developers with a diverse portfolio of properties in Hanoi, Ho Chi Minh City, Dong Nai and Vung Tau including Grade A offices, res ident ia l p roper t ies , integrated townships and award-winning serviced apartments.

With 20 licensed projects across Vietnam and a pipeline of more than 25,000 homes, Keppel Land is establishing itself as the choice developer, distinguished by quality and innovative lifestyle concepts. keppelite

Ulu Pandan NEWater Plant upgradeFirst NEWater plant in Singapore to feature third-stage reverse osmosis configuration.

Keppel Seghers, a wholly-owned subsidiary of Keppel Infrastructure (KI ) , has completed the treatment capacity upgrade of the Keppel Seghers Ulu Pandan NEWater Plant on 11 March 2017.

Keppel Seghers embarked on the upgrading project on 29 April 2016 and it was completed ahead of schedule and on budget.

To expand the p lant ’s capacity, Keppel Seghers installed a third-stage reverse osmosis (RO) system that recycles the reject water from the second-stage RO system, thereby boosting the plant’s designed and contracted capacity to 162,800 m3 of NEWater daily, up from 148,000 m3 previously.

Mr Tan Boon Leng, ED, Environmental Infrastructure

of KI, said, “The Keppel Seghers Ulu Pandan NEWater Plant is the first large-scale plant in Singapore to adopt a third-stage RO configuration.

“As the original designer and builder of the plant and its current operator, Keppel Infrastructure is uniquely placed to deliver this upgrade which has raised the plant’s ability to deliver high-grade reclaimed water to support

Singapore’s aim to achieve a sustainable and secure water future.”

The Keppel Seghers Ulu Pandan NEWater P lant upgrading works were p lanned and executed wi thout a ffec t ing the plant’s overall operational availability. keppelite

The Memorandum of Understanding between Keppel Land and Vietnam’s State Capital Investment Corporation (SCIC) was signed in Hanoi by Mr Ang Wee Gee (seated, far left), CEO of Keppel Land, and Mr Nguyen Duc Chi (seated, far right), Chairman of SCIC, and witnessed by the Prime Minister of Singapore, Mr Lee Hsien Loong (second from left), and the Prime Minister of Vietnam, Mr Nguyen Xuan Phuc (second from right)



First delivery for 2017On 16 February 2017, Keppel Shipyard delivered a Floating Production Storage and Offloading (FPSO) vessel to Yinson Production (West Africa) Pte Ltd (Yinson), a wholly-owned subsidiary of Yinson Holdings Berhad, safely.

The spread-moored FPSO unit was named John Agyekum Kufuor during a ceremony held at Keppel Shipyard on 3 February 2017. It is being chartered by ENI Ghana Exploration & Production Limited (ENI Ghana) to process oil and gas from the Offshore Cape Three Points block located in Offshore Ghana.

Mr Michael Chia, MD (Marine & Technology) of Keppel Offshore & Marine (Keppel O&M), said, “Over the years, we have strengthened our relationship with our repeat customers, Yinson and ENI Ghana, and we are glad to support them once again in providing FPSO solutions to the market.

“We have a strong track record of customising FPSOs for a wide variety of fields. FPSO John Agyekum Kufuor is our 27th conversion project for Africa, and 125th overall.”

FPSO John Agyekum Kufuor has a storage capacity of

Celebrating the naming of the spread-moored Floating Production Storage and Offloading unit, John Agyekum Kufuor, are H.E. Rebecca Akufo-Addo (first row, fifth from right), First Lady of the Republic of Ghana; Mr John Agyekum Kufuor (first row, fourth from right), former President of the Republic of Ghana; Mr Chow Yew Yuen (first row, third from left), then-CEO, Keppel Offshore & Marine; and Mr Lim Han Weng (first row, extreme left), Group Executive Chairman, Yinson Holdings Berhad

1.7 million barrels, with an oil processing capacity of 58,000 barrels per day. It has a design life of 20 years without dry docking and can be moored in an average water depth of 1,000m with a total topside weight of almost 15,000 tonnes.

Mr Lim Chern Yuan, Group CEO of Yinson, said, “There are opportunities in the FPSO market and we are glad to be able to meet those needs through our FPSO solutions. Our trust and confidence in Keppel extends back to 2014 when we worked together on FPSO Lam Son. We are confident that FPSO John Agyekum Kufuor will

be a valuable addition to ENI Ghana’s exploration and production activities, strengthening their presence in Africa.”

Keppel Shipyard’s work on FPSO John Agyekum Kufuor inc luded mod i f i ca t ion work, new equipment installation complete with associated piping, electrical and instrumental systems, as well as installation and integration of the FPSO process topsides. keppelite



Novation of Transocean rigs to Borr Drilling

Keppel Offshore & Marine (Keppel O&M) has entered into a term sheet agreement with Damen Shipyards Group (Damen) for the sale of its shipyard, Keppel Verolme.

The proposed sale comes after a strategic review by Keppel O&M and is part of the company’s efforts to

optimise its operations and rationalise its global network of yards.

Keppel O&M continues to see opportunities in the offshore oil and gas market in Europe and the North Sea, and will service these markets through its network of yards in Singapore and globally.

Keppel Verolme is situated in Rotterdam, the Netherlands, a n d h a s a b o u t 2 5 0 employees. Damen intends to continue activities in the shipyard with the current employees of the yard.

A notification of the proposed transaction has been filed with the Dutch Authority for Consumers & Markets

on 10 April 2017. The parties will work towards finalising def in i t i ve agreements , and the completion of the transaction will be subject to closing conditions and the receipt of relevant approvals.

The targeted timeline to close the transaction is by the end of 2Q 2017. keppelite

Divestment of Keppel Verolme

Keppel FELS, a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has entered into a Heads of Agreement with Borr Drilling Limited of Bermuda (Borr Drilling), with the approval of Transocean, whereby the construction contracts for

the five jackup rigs currently being built by Keppel FELS for Transocean will be novated to Borr Drilling.

The transaction is subject to all three parties executing definitive agreements and satisfying formal closing

conditions. The completion of transaction is expected to take place before end-May 2017.

I n 2 0 1 3 , Tr a n s o c e a n had ordered five KFELS Super B Class jackup rigs f rom Keppe l FELS fo r US$1.1 billion and made a 20% down payment. Under the new agreement, Borr Drilling will take over the contracts and undertake the remaining payment instalments to Keppel FELS. The price for each rig is US$216 million, compared to the original price of US$219 million. Borr Drilling wil l also make a down payment of US$275 million.

The delivery dates of the five rigs were originally

scheduled between 2016 and 2017, but had been deferred by Transocean to 2020. The first three rigs will now be delivered between 2017 and 2018, while the remaining two rigs will be delivered in 2020. This will enable Keppel to improve cash flow and minimise risks of the projects.

The deal is a testament to the reliability of and strong demand for Keppel’s proprietary KFELS Super B Class rigs, even in the present challenging market conditions.

The KFELS Super B Class rigs are designed to operate in 400 ft water depth and drill to 35,000 ft. keppelite

Transocean’s five jackup rigs, under construction at Keppel FELS, will be novated to Borr Drilling on completion of the deal



Groomed from within

With a belief that people a re i t s mos t va luab le resource, the Keppel Group is committed to attract and retain the best talent, and nurture employees to bring out their full potential.

Through the company’s succession planning process, Keppelites with the right ski l ls and aptitude are identified and groomed for

advancement to take on more challenging roles in the organisation.

Mr Tay Guan Chew was appointed as GM of Group Tax, Keppel Corporation, with effect from 1 January 2017. He has been with the Keppel Group for close to 13 years and has been overseeing tax compliance and tax planning, as well as providing

On the markP r o j e c t s b y K e p p e l Singmarine achieved steady progress in recent months.

NON-DRILLING SOLUTIONSOn 15 March 2017, the St r ike Stee l Ceremony for Keppel Singmarine’s construction of three Trailing Suction Hopper Dredgers (TSHDs) for the Jan De

Nul Group commenced at Keppel Nantong Shipyard.

Contracts for the three TSHDs were secured in July 2016. Built to Jan De Nul’s design requirements, the TSHDs wil l be able to dredge to a maximum depth of 27.6 m, and have a hopper capacity of 3,500 m3.

LNG SOLUTIONSOn 12 April 2017, Keppel Singmarine held the keel laying ceremony for two 65-tonne Azimuth Stern Drive dual-fuel tugs ordered by Keppel Smit Towage and Maju Maritime.

In addition to conventional diesel fuel, Keppel’s dual-fuel tugs are able to operate on

cleaner liquefied natural gas (LNG), offering increased fuel consumption efficiency and operational flexibility.

Developed by Keppel, the dual-fuel tug design clinched the Outstanding Maritime R&D and Technology Award at the 2015 Singapore Internat ional Mar i t ime Awards. keppelite

advice to business units on tax implications of various proposed transactions.

M r T a y s u c c e e d s Mrs Magdel ine Wong, former GM of Group Tax, Keppel Corporation, who retired on 31 December 2016 after more than 37 years of dedicated service with the Keppel Group.

Prior to joining Keppel, Mr Tay was with KPMG (Tax Services) where he was involved in providing tax compliance, tax advisory, merger and acquisit ion services to a portfolio of corporate clients across various industries.

Separately, Ms Tok Soo Hwa was appointed GM, Group Control & Accounts, Keppel Corporation, with effect from 1 April 2017.

Ms Tok jo ined Keppe l Corporation under the Keppel Group Scholarship scheme in 1994 and began her career with Group Treasury where she was responsible for the management of a portfolio of listed equities. In 2009, she was rotated to Group Control & Accounts.

In her current role as GM, Group Control & Accounts, K e p p e l C o r p o r a t i o n , Ms Tok oversees group financial and management repor t ing , account ing advisory, finance learning a n d d e v e l o p m e n t programmes as well as the Keppel Group Enterprise Resource Planning and Finance Shared Service Centre project. keppelite

Mr Tay Guan Chew Ms Tok Soo Hwa



Keppel Land has made a few changes to its leadership team as part of ongoing efforts to build strong leaders to reinforce the company’s growth strategy.

Mr Ng Oo i Hoo i ha s succeeded Mr Tan Swee Yiow as President of Singapore and Director of Keppel Land Hospitality Management, effective 20 March 2017.

Mr Ng has relinquished his role as President of Regional Investments. Prior to that, Mr Ng was GM, Business Development and then GM, Regional Head, with Keppel Land China.

Also effective 20 March 2017, Mr Sam Moon Thong has assumed the post of President of Regional Investments. He concurrently holds the appointment of

President, Myanmar, and has relinquished his role as President, Indonesia.

Prior to his relocation to Jakarta in 2010, Mr Sam was responsible for Keppel Land’s business development efforts in Southeast Asia, South Asia and the Middle East.

Mr Goh York L in has succeeded Mr Sam as President, Indonesia, on 2 0 M a r c h 2 0 1 7 a n d relinquished his role as

President, Myanmar.

Mr Goh started his career with Keppel Land’s project team for Indonesia in 1994. Before moving to Yangon in 2013, Mr Goh was ED, Asset Management a t Alpha Investment Partners.

Mr Ho Cheok Kong has also stepped down as Director of Corporate Development on 31 March 2017 after serving 17 years with the company.

Prior to his appointment with Corporate Development, Mr Ho was President of Keppel Land China and was instrumental in growing the company’s business in China.

Mr Anthony Chua has succeeded Mr Ho as Head of Corporate Development on 1 April 2017. Mr Chua joined Keppel Land in October 2014 as DGM (Business Development), Singapore. keppelite

Mr Anthony ChuaMr Ng Ooi Hooi Mr Sam Moon Thong Mr Goh York Lin

Changes in leadership team at Keppel Land

Fuel for thoughtThere are no secrets to success. It is the result of

preparation, hard work, and learning from failure.

Colin Powell


24 Special Focus

Growing as OneKeppelAt the Global Keppelites Forum 2017, Mr Loh Chin Hua, CEO of Keppel Corporation, called on Keppelites to take heart in the company’s resilience and strong track record, and to heighten collaborative efforts to realise synergies across the Group as it continues its journey towards becoming a global company at the forefront of its chosen industries.

On 9 February 2017, over 2,600 Keppelites gathered in about 70 locations worldwide for the third annual Group-wide townhall, the Global Keppelites Forum.

With his address broadcast l i v e f rom the Keppe l Leadership Inst i tute in Singapore, Mr Loh Chin Hua, CEO of Keppel Corporation, provided insights on the achievements of the Group and its various business units, and reiterated the Group’s commitment to build on the strong foundations of its multi-business strategy, which continues to bolster its performance despite the challenging external environment.

Mr Loh said, “The challenges we face may be daunting, but we are not without our strong points. Keppel ha s many we l l - t e s ted strengths like our resilience, Can Do! spirit, a history of successfully reinventing ourselves, and a robust balance sheet.

“Today, we can add on to these positives: we have a clear vision of who we are, and how our different businesses are engaged in the common objective of providing solutions for sustainable urbanisation. With the many advantages of OneKeppel, we will play a pivotal role in shaping the future.”

STRONGER TOGETHEREmphasising this year’s “OneKeppel” theme, Mr Loh highlighted the importance of continuing to collaborate and hunt as a pack. “There are many positive examples of collaboration within and between our business units. However, this is still a new muscle we are getting used to,” he said.

“ W e h a v e t o m o v e beyond strong verticals to collaborating and unleashing our synergies. We must look at how we can play as an accomplished orchestra, and hunt better as a pack and capture new pools of profits. Only then will the market reward us with the earnings

multiples we deserve as a top-performing multi-business group.”

PREPARING FOR THE FUTUREBeyond dealing with the immediate challenges and making progress towards the Group’s Vision 2020 target, Mr Loh highlighted the importance of imagining a FutureKeppel, and laying the foundations to ensure that the company’s future remains bright and exciting.

He shared that Keppel continues to actively grow the capabilities of its worldwide talent pool through training and development, and called on Keppelites to volunteer

Mr Loh Chin Hua, CEO of Keppel Corporation, reiterated the Group’s commitment to its multi-business strategy

25


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as OneKeppel , emerge stronger and ready for the future.”

VALUABLE INSIGHTSDuring the Global Keppelites Forum question and answer segment, Mr Loh, Mr Chan Hon Chew, CFO of Keppel Corporation, and the various business unit CEOs fielded queries from Keppelites around the world. Over 140

questions came fast and furious, courtesy of the live web portal Pigeonhole, with more than 3,550 votes cast for the different questions. Keppel i te shares some highlights from the segment, which was moderated by Mr Louis Lim, Director of Group Strategy & Development, Keppel Corporation.

Keppelites reaffirmed their commitment to collaboration as OneKeppel at the Global Keppelites Forum

Keppelites from around the world, such as those from Keppel Land China, tuned in to the Global Keppelites Forum via webcast

and play their part in shaping the company’s sustained success.

“We are at the cusp of transitioning from a proud and successful Singapore company to a sustainable global business. OneKeppel, Many Careers is not just a tagl ine. We hope to get more Keppelites to move across departments,

business units and even the different markets we operate in. This is your opportunity to play a part in how the next chapters of Keppel are written,” he said.

He added, “Embrace change, be prepared to innovate, experiment and take risks. We must be nimble and seize opportunities. I am confident that we wil l , Continues on page 26...

Embrace change, be prepared to innovate, experiment and take risks. We must be nimble and seize opportunities. I am confident that we will, as OneKeppel, emerge stronger and ready for the future.Mr Loh Chin HuaCEOKeppel Corporation


26 Special Focus

ON ENCOURAGING COLLABORATION AND SYNERGYLCH: By cont inuing to harness synergies across our business units and hunting as a pack, we can access opportunities and new profit pools that each business unit individually would not have been able to achieve. Equally important is to not take internal customers for granted and to treat them as our most important clients.

CHC: We can achieve greater things by realising unity in our diversity. In the midst of this crisis, the Group must review and improve our processes as well as explore different business models so that we can overcome this long winter.

CT: In this period of market volat i l i ty, investors are looking for real assets that provide sustainable income and yield. Keppel Capital plays an important role in expanding our capital base and allowing the Group to seize opportunities by

harnessing the strengths of our strong business verticals, without putting a strain on our balance sheet. One example of collaboration is the Alpha Data Centre Fund, which has achieved strong investor interest.

ON DEVELOPING NEW CAPABILITIESCHC: With the establishment of Keppel Enterprise Services this year, we are looking at developing a Shared Service Centre to manage various functions across our business units. An example of one such initiative is Project Autobots, which aims to set up a single, centralised finance system across the various business units (see page 27). Through such initiatives, we not only reduce staff costs, but also reap efficiencies, improve control and further the digitisation of our various business functions. This is one way in which Keppel is investing for the future and all of us must be prepared to embrace change and learn new skills.

ON IDENTIFYING AND NURTURING TALENT OTG: It is important for the next generation of leaders to be bold and passionate about the business so that they can inspire their teams to work towards realising the company’s vision. More importantly, leaders must be able to continually motivate the team to cross the finish line together.

ON ACHIEVING GREATER HEIGHTSCYY: For Keppel O&M, we must recognise that we remain leaders in our core businesses and take this opportunity to reinvent ourse lves . Th i s means re-purposing our offshore technology to capture opportunities in the non-drilling sector, and tapping into new markets.

AWG: For Keppel Land, one of the benefits of being delisted is that we do not have to take a short-term approach to profit and loss. Instead, we can time our entry into the market and adopt a

more sustainable, long-term strategy of building effective teams, good relationships and strong brand equity in our key growth markets.

TP: As Keppel T&T continues to t ransform, we f ind ourselves well-positioned in the digital economy. We aim to be the leading company in Asia for our data centre business. In the logistics division, we are exploring new crowd-sourcing and asset-light business models that will make us a leader in urban logistics.

LCH – Mr Loh Chin Hua, CEO, Keppel Corporation

CHC – Mr Chan Hon Chew, CFO, Keppel Corporation

CYY – Mr Chow Yew Yuen, then CEO, Keppel Offshore & Marine

AWG – Mr Ang Wee Gee, CEO, Keppel Land

OTG – Dr Ong Tiong Guan, CEO, Keppel Infrastructure

CT – Ms Christina Tan, CEO, Keppel Capital

TP – Mr Thomas Pang, CEO, Keppel Telecommunications & Transportation

CEO, CFO and CEOs of the various business units took questions from the audience during the question and answer segment


27


27 27

Project AutobotsShaping the future through digitisation.

Keppel has embarked on Project Autobots, which aims to harmonise and consolidate the Group’s finance, payroll and procurement functions and set up a finance Shared Services Centre. The new harmonised technology p l a t f o r m a n d S h a re d Services Centre, together with the use of Robotics Process Automation, will reap efficiencies, increase agility, enhance controls and improve ways of working.

Since the project kicked-off in February 2017, Keppel Enterprise Services, together with Finance and IT teams

across the Group, have been working with Accenture in a series of finance process workshops to va l idate business requirements and finalise solution designs for the new harmonised enterprise platform.

Mr Loh Chin Hua, CEO of Keppel Corporation, said, “A unified Enterprise Resource Planning backbone and shared services platform is important to digitise our infrastructure, drive efficiency and achieve better controls in preparation for the future digital economy.” keppelite

The gears and robotic arm represent the automation of manual processes and digitisation that drive high performance business processes; the people symbolise closer organisational collaboration; while the human mind represents the adoption of next generation technology mindsets

Keppelites in Singapore and abroad share their thoughts and key takeaways from the annual townhall.

“The Forum was a good opportunity for employees overseas to gain a better understanding of the Group’s strategy. I am confident that with our Can Do! spirit, we will continue to look for growth opportunities and build a better future together.”

Maala Rodel DalawampuCommercial OfficerKeppel Batangas Shipyard

“The OneKeppel tagline is a powerful reminder of the diversity and strength within the Group. The sharing by Mr Loh on how Uber is impacting the taxi business model in New York City underscores the need for us to be constantly on our toes and react quickly to change.”

Jacquelyn WongDGM, MarketingKeppel Land China

“During this challenging period, Mr Loh’s speech provided a timely reminder of Keppel’s many strengths and strong foundations. The video of Keppelites around

the world sharing their achievements showed that we are all part of a global company, capable of seizing opportunities by harnessing strengths in our diversity.”

Luanne Hong Human Resource ManagerKeppel Infrastructure

“My biggest takeaway is the importance of taking personal responsibility for Keppel’s success. At an individual level, I am motivated to upgrade my skills so I can help the company overcome challenges and be better prepared for the future.”

Waldir ZanettiProject ManagerBrasFELS

“My greatest takeaway is that amidst the headwinds, we must continue to embrace d i s rup t ion , improve ourselves, and hunt as a pack.”Han SufenExecutive, Group Corporate CommunicationsKeppel Corporation



New home for Keppel Capital

Keppel Capital reached a new milestone as its asset managers – Keppel REIT Management, Alpha I n v e s t m e n t P a r t n e r s , Keppel Infrastructure Fund Management and Keppel DC REIT Management - came together under one roof at its newly renovated office at Bugis Junction Towers in February 2017.

Marking the launch of its new office on 10 February 2017, Keppel Capital held a staff meeting which involved over a hundred Keppelites, an auspicious performance by a lion dance troupe and a celebratory tossing of yu sheng (raw fish salad).

In her opening address to Keppelites, Ms Christina

Tan, CEO of Keppel Capital, spurred employees to unite and collaborate, and harness synergies across all asset managers to create even greater value for Keppel Capital stakeholders. She challenged staff to think boldly, be innovative, and grow the business as a team.

Separately, on 28 March

2017 , Keppe l Cap i ta l welcomed business partners and institutional investors to its new office. Business associates were given a tour of the new workspaces, and were introduced to the modern and open-plan concepts which eliminated barriers and encouraged spontaneous collaboration. keppelite

Keppel Capital marked the launch of its new office with a staff meeting, an auspicious performance by a lion dance troupe and a celebratory tossing of yu sheng. Separately, business partners and institutional investors were brought on a tour of the new workspaces, and were introduced to its modern and open-plan concepts



Spurring Innovations

Future-focused officeKeppel Capital has embraced a new and modern open-concept workp lace in keeping with its aim to build a future-focused organisation and spur innovation.

Featuring a ‘public street’, ‘collaboration bars’ and diner-style discussion booths, these spaces fac i l i tate informal interactions and idea flow. Phone booths

and ‘focus corners’ provide quiet spaces for business calls, while meeting rooms are available for formal discussions. The café-style pantry, bar counters, sofas

and pool table are set up to resemble a cosy abode for employees to rest and interact. keppelite

Keppel Capital’s new open-concept office features collaboration spaces that facilitate informal interactions and idea flow

Keppelites from Keppel Capital share their thoughts on the new workspace.

“We welcome the fresh, new open concept workspace. In particular, the cosy café-style sofa booths help encourage spontaneous chats among Keppelites and provide opportunities for cross-learning across different teams. These amenities are very well-received and well-utilised.”Liang HuihuiAssistant Manager, Investor Relations

“Coming under one roof facilitates collaboration as colleagues are just a short walk away. It is now easier for us to tap expertise from various teams during brainstorming sessions and work discussions.” Michelle WongAssistant Manager, Investment

“The new open concept office leads in an effort to break down ranks and walls. It has effectively nurtured an environment that promotes teamwork and exchange of new ideas among various teams and corporate functions.”Marc LiuVice President, Asset Management



Each report features a candid and robust discussion on business outlook and the company’s strategy.

In 2016, the Singapore Exchange (SGX) introduced sustainability reporting on a “comply or explain” basis for any financial year ending on or after 31 December 2017.

A year ahead of SGX’s deadline, l isted Keppel ent it ies – Keppel REIT, Keppe l I n f r a s t r u c tu re Trust and Keppel DC REIT

The 2016 edition of the Group’s annual reports showcase how each business unit drives growth through the solutions they provide

Driving value creationThe Keppel Group’s 2016 Annual Reports illustrate how each business unit has a part to play in driving the Group’s value proposition as a leading solutions provider for sustainable urbanisation.

Flipping through the pages, readers will glean insights to how Keppel meets the world’s growing demand for energy, infrastructure, clean environment, high quality homes, offices and retail developments, as well as connectivity.

have published their first Sustainability Reports which are aligned with Global Reporting Initiative (GRI) sustainabi l i ty report ing guidel ines. The reports are included within the respective Annual Reports.

I n a d d i t i o n , K e p p e l Te lecommunicat ions & Transportation continued to enhance its Sustainability Report which was prepared in accordance with GRI guidelines. keppelite



Charting new frontiers in technologyOn 14 March 2017, Keppel Offshore & Marine Technology Centre (KOMtech) was

recognised by the National Supercomputing Centre (NSCC) Singapore for its

commendable efforts in High Performance Computing (HPC).

KOMtech’s project, one of three recipients of the NSCC Special Honourable Mention for Best Integrated Vertical Domain (HPC in Offshore & Marine), made extensive use of NSCC’s HPC resources to optimise the design of rigs and vessels in the product development process.

The inaugural NSCC Awards, held in conjunction with the Supercomputing Frontiers (SCF) Conference, aims to Mr Aziz Merchant (second from left), ED, KOMtech, together with recipients of the National

Supercomputing Centre Special Honourable Mention for Best Integrated Vertical Domain (HPC in Offshore & Marine)

Steady progressIn January 2017, the hull of the CAN DO drillship was delivered to Keppel FELS upon completion of its construction by Japanese IHI Corporation (IHI). With immaculate planning by the project team, heavy lift installations for the topside modules have been executed like clockwork on the drillship at Keppel FELS.

The CAN DO dr i l l sh ip design was developed in consultation with customers, major oil companies and v e n d o r s . W h i l e m o s t modern drillships currently

in operation were designed and built for exploration drilling, industry feedback has revealed the need for vesse ls capable of performing development and completion dri l l ing in addition to exploration drilling.

J o i n t l y d e v e l o p e d b y Keppel Offshore & Marine Technology Centre and its design partner GustoMSC, the CAN DO dr i l l sh ip is designed to overcome the constraints of limited deck space found in most modern-day drillships. keppelite

With immaculate planning from the project team, heavy lift installations for the topside modules have been executed like clockwork on the CAN DO drillship

elevate supercomputing in Singapore to the next level.

The key stakeholders of NSCC Singapore are the Agency for Science and Technology and Research ( A * S TA R ) , N a n y a n g Technological University, Nat iona l Un ivers i ty of Singapore and Singapore University of Technology and Design.

KOMtech was also a recipient of the NSCC Outstanding HPC Industry Application Award. keppelite


32 HSEMATTERS

Spotlight on HSEStarting from this quarterly issue of Keppelite, this dedicated section will provide a snapshot of the significant health, safety and environment (HSE) activities and achievements across the Group over the past quarter.

SENOKO WTE PLANTKeppel senior management regularly conduct site visits to the Group’s yards, plants, worksites, offices and facilities as part of efforts to engage operational staff, understand the challenges they face on the ground, and reinforce key safety messages and guidelines.

On 20 March 2017, Mr Loh Chin Hua, CEO of Keppel Corporation, together with Mr Louis Lim, Director, Group Strategy & Development; Mr Kevin Chng, GM, Group Risk & Compliance; and Mr R K Jaggi, GM, Group HSE, visited the Senoko Waste-to-Energy (WTE) Plant.

Hosted by Mr Tan Boon Leng, ED, Environmental Infrastructure of Keppel Infrastructure (KI), the group inspected safety processes at the plant and were briefed on plant operations, key performance indicators, innovation projects, and HSE initiatives such as the Management of New Workforce and inspection for Safety Compliance Assurance.

T h e o p e r a t i o n s t e a m s h a re d on the challenges they face in the course of the i r work, as wel l as precautionary measures and solutions implemented to overcome these issues. The visit allowed the management

to gain a better understanding of the plant operations and safety culture.

HSE ROAD SHOWKI held its fourth annual HSE Road Show in Singapore in February 2017. Around 300 Keppelites and contractors p a r t i c i p a t e d i n t h e e v e n t , w h e r e t h e y w e r e b r i e f e d on the company’s HSE performance in 2016, lessons learnt from recent HSE-related incidents, as well as targets and action plans for the year ahead. At the end of the roadshow, Dr Ong Tiong Guan, CEO of KI, unveiled a photo montage themed “This is why I work safe”.

Dear Keppelites,

For the first quarter of 2017, we started our safety journey well and look forward to implementing our next phase of safety initiatives. In particular, I would like to highlight the steady progress on our Zero Fatality strategy roadmap.

So far, Keppel’s 5 Key Safety Principles have been refreshed and rolled out across the Group. We

have also been working on:• Harmonising global HIRA standards across the various

business units.• Enhancing the competency of workers in safety-critical

roles such as crane operators and those working at height.• Encouraging the use of leading indicators such as near

miss and hazard reporting to drive safety performance, as opposed to after incidents have already occurred.

• Strengthening the safety leadership of frontline managers through coaching sessions and workshops.

With the strong support of all Keppelites and stakeholders, let us aim to further improve our safety performance and strengthen efforts toward our goal of zero fatalities. I also welcome any suggestions on how HSE improvements can add value to our businesses.

Let us continue to harness our collective strengths, resources and expertise as OneKeppel in our drive towards HSE excellence.

GM, Group HSE, Keppel Corporation andChairman, Inter-Business Unit Safety Committee

R K Jaggi


HSEMATTERS 33

(JDC) and BOT Lease Company on 20 February 2017 to commemorate the exce l lent safety record on Hakuryu 15, the second KFELS Super B Class jackup rig to join JDC’s fleet. Work on Hakuryu 15 is expected to be completed by September 2017.

The Keppel Seghers Tuas WTE Plant marked five years of operations without any reportable lost-time incidents (LTI) on 19 February 2017.

Dynamic Vision, a KFELS B Class jackup rig for Vision Drilling, a subsidiary of the Dynamic Offshore Drilling Group, was conferred “Best Overall Safety Performance in Offshore Rigs” for 2014 – 2015 at the Oil Industry Safety Awards.

Spring City Golf & Lake Resort in Kunming, China was awarded the Work Safety Standardisation Certificate by China’s State Administration of Work Safety in January 2017. keppelite

Keppel senior management visited the Senoko Waste-to-Energy Plant to gain a better understanding of the plant operations

Keppel Infrastructure held its fourth annual HSE Road Show

BEING PREPAREDMarina at Keppel Bay in Singapore held joint exercises with Home Team agencies in the months of March and April 2017 to ensure its crisis and business continuity management frameworks are kept robust.

KEPPEL WELLNESS GALLERYThe Keppel Wellness Gal lery at Keppel Shipyard was opened on 10 February 2017 by Mr Heng Chiang Gnee, Chairman of the Workplace Safety & Health (WSH) Council, as part of efforts to incorporate health and wellness initiatives into the Group’s HSE culture.

Held in conjunction with the launch o f Keppe l Off shore & Mar ine (Keppel O&M)’s Total Workplace Safety & Health 2020 programme, the Gal lery features interact ive health exhibi ts that encourage proper nutrition, active lifestyles and sound mental wellness amongst employees. This builds on previous HSE efforts, including the Safety Tra in ing Cent re and We l lnes s Centre launched in 2010 and 2016 respectively.

RECENT ACHIEVEMENTSKeppel FELS was awarded a US$10,000 safety bonus by Japan Drilling Company



Charting progress in Tianjin Eco-City

The Sino-Singapore Tianjin Eco-C i t y ( Eco-C i t y ) , a landmark bilateral project between the governments of Singapore and China, has achieved good progress as it approaches its 10th anniversary in 2018.

S ino-S ingapore T ianj in E c o - C i t y I n v e s t m e n t and Development Co., Ltd. (SSTEC), the master developer of the project, is a 50-50 joint venture between a Singapore Consortium led by the Keppel Group and a Chinese Consortium led by Tianjin TEDA Investment Holding Co., Ltd.

At the ninth Sino-Singapore

Tianjin Eco-City Joint Steering Counc i l ( JSC) meet ing held in Beijing, China on 27 February 2017, Singapore and China reaffirmed the achievements of the Eco-City, and reiterated their commitment to its continued development and success. The JSC meet ing was co-chaired by Singapore’s Deputy Pr ime Minister (DPM) and Coordinating M in i s t e r fo r Na t i ona l Security, Mr Teo Chee Hean and China’s Vice Premier Mr Zhang Gaoli.

Members of the Singapore delegation included Ms Grace Fu, Minister for Culture, Community and Youth;

Mr Lawrence Wong, Minister for National Development & Second Minister for Finance; Dr Amy Khor, Senior Minister of State (SMS), Ministry of Health & Ministry of Environment and Water Resources; Ms Josephine Teo, SMS, Prime Minister’s

Office, Ministry of Transport & Ministry of Foreign Affairs; HE Stanley Loh, Ambassador of Singapore to China; and Mrs Ow Foong Pheng, P e r m a n e n t S e c re t a r y, M i n i s t r y o f N a t i o n a l D e v e l o p m e n t ( M N D ) . Dr Lee Boon Yang, Chairman

Witnessed by DPM Teo Chee Hean (left, back row) and his Chinese counterpart Vice Premier Zhang Gaoli (right, back row), Minister of State of MND Mr Koh Poh Koon (left, front row) and Vice Minister of MOHURD Ms Huang Yan (right, front row) signed an MOU on formation of the Joint Expert Panel (Photo credit: Ministry of National Development)

On 26 February 2017, Minister Lawrence Wong (left) met with Mayor Wang Dongfeng (right) to discuss next steps of the Eco-City’s development (Photo credit: Ministry of National Development)



Deepening ties with Tianjin

of Keppel Corporation, and Mr Tay Lim Heng, CEO of SSTEC were also part of the delegation.

The JSC meeting endorsed the Eco-City’s Work Report which was delivered by Mr Zong Guoying, then Party Secretary of Tianjin Binhai New Area.

In the report, Mr Zong h igh l igh ted the good progress achieved by the Eco-City, which now has more than 70,000 people living and working there, as well as over 4,500 registered companies1. There is also a comprehensive network of amenities, including 15 schools, a 350-bed hospital and three neighbourhood centres.

Mr Zong also highlighted the close collaboration between Singapore and China in the implementation of the Eco-City’s Three-Year Work Plan (2015 – 2017) and the preparations for the Eco-City’s 10th anniversary.

The JSC meeting affirmed the progress achieved by the Eco-City. In addition, V i c e P r e m i e r Z h a n g

encouraged the parties involved in the project to draw reference from China’s new development concepts and build the Eco-City into an ecological city with global influence.

DPM Teo said he hoped that as the Eco-City approached its 10th anniversary, both sides could continue to work together to realise its vision and potential, and bring the Eco-City to greater heights.

T i a n j i n M a y o r Wa n g Dongfeng also said that the Eco-City will be developed in accordance with the leaders’ guidance, and will actively contribute to the coordinated development of the Be i j ing-T ian j in-Hebei region, and China’s “One Belt , One Road” initiative.

STRENGTHENING SINO-SINGAPORE COLLABORATIONAfter the JSC meeting, S ingapore ’s MND and C h i n a ’s M i n i s t r y o f Housing and Urban-Rural Development (MOHURD) signed an agreement to form a Joint Expert Panel. The panel will comprise experts

Ahead of the annual high-level bilateral meeting, Minister Lawrence Wong, Dr Lee Boon Yang and other members of the Singapore delegation called on Mayor Wang Dongfeng on 26 February 2017. It was the first meeting between Minister Lawrence Wong and Mayor Wang Dongfeng since his appointment as Tianjin Mayor in November 2016.

Mayor Wang Dongfeng said that the cooperation between T ian j in and Singapore has achieved fruitful results, and the development of the Eco-City has created a model which is replicable and scalable. Minister Lawrence

Wong commented that both sides should leverage their strengths to bring the bilateral cooperation to new heights.

Mayor Wang Dongfeng a l so recogn i sed the contr ibut ions of the Keppel Group to Tianjin’s development over the years, in particular in leading the Singapore Consortium in the Eco-City project.

Dr Lee thanked Mayor Wang Dongfeng for the T ianj in Government’s support for the Eco-City and reaffirmed the Keppel Group’s commitment to the development and growth of the Eco-City.

Dr Lee Boon Yang (first from right), Chairman of Keppel Corporation, joined Minister Lawrence Wong in calling on Mayor Wang Dongfeng (Photo credit: Ministry of National Development)

f rom government and private sectors, academic institutions and research organisations, to exchange i dea s and adv i s e the Eco-City on how to achieve i t s v i s ion and harness opportunities arising from

China’s national priorities and strategies.

In addition, the Eco-City Administrative Committee ( E C A C ) a n d C h i n e s e compan ie s i nked f i ve agreements with Singapore companies, government agenc ies and research i n s t i t u t e s , s p a n n i n g col laborat ion in water resources management, medical health, digita l media, R&D and smart city development. keppelite

1 These figures include the Tourism

District and Central Fishing Port.



Positioned for growthKeppel Offshore & Marine (Keppel O&M) joined over 25,000 delegates and 600 exhibitors at Gastech, the largest gas and Liquefied Natural Gas (LNG) exhibition in the world, held 4 – 7 April 2017 in Tokyo, Japan.

Besides showcasing its suite of LNG solutions at the Singapore Pavilion, Keppel also conducted workshops on topics inc luding i ts technologies and products along the gas value chain. During a cocktail reception hosted by Keppel O&M,

s e n i o r m a n a g e m e n t mingled with customers, partners and associates to explore new business opportunities.

With the huge growth po ten t i a l o f the LNG market, Keppel O&M has been widening its solution offerings beyond its hallmark products. It is well equipped to capture a wide range of opportunities in the gas value chain with its solutions for onshore and offshore liquefaction, LNG transportation solutions,

Senior management from Keppel Offshore & Marine mingled with customers, partners and associates of Gastech 2017 held in Tokyo, Japan, to explore new business opportunities in the Liquefied Natural Gas market

Fruitful visitKeppel’s logistics business in China has grown in tandem with the needs a n d p ro g re s s o f t h e

market, and has become a point of learning for off i c ia l s and investors alike.

Mr Andrew Lee (first row, fifth from left), Mayor of Mount Gambier, Australia, together with Lu’an government officials and other Australian delegates, visited the Keppel Wanjiang International Coldchain Logistics Park

On 25 March 2017, a de legat ion l ed by Mr Andrew Lee, Mayor of Mount Gambier, Australia,

visited the Keppel Wanjiang International Coldchain Logistics Park in Lu’an city, China.

Accompanied by officials f r o m t h e L u ’ a n c i t y government and J in’an district, the delegation was received by Mr Tan Hoe Lai, GM of Keppel Wanjiang International Coldchain Logistics Park, and other department heads.

The parties engaged in a robust and interact ive discussion on potential areas of collaboration while touring the logistics park. keppelite

f l o a t i n g s t o r a g e a n d regasification facilities, as well as newbuild vessels

capable of running on LNG. keppelite

Empowering Lives 37


Empowering Lives 37

Inspiring leadership“Everyone has different strengths. As a leader, it is important to be centred and aware of your strengths and weaknesses and build on your strengths to become an inspirational leader,” shared Mr Louis L im, Director o f G roup S t r a t egy & Deve l opmen t , Keppe l Corporation, at the Leaders Dia logue organised by Keppel Young Leaders on 31 March 2017.

Prior to joining Keppel, Mr Lim was with consulting firm Bain & Company for more than 18 years and headed various practices, including Organisation and Change Management.

S p e a k i n g t o t h e 5 8 Keppelites in attendance, Mr Lim explained the four aspects of inspirational leadership – developing inner resources, setting the tone, connecting with others and leading the team. Through recounting his own leadership experience, Mr L im shared how to overcome challenging team dynamics and empower team members.

During the session, a team of Keppel Young Leaders were presented with a token of appreciation for their efforts in the Global High Impact Risk Activities (HIRA) Safety Project.

Team leader Tan Jian An, Assistant Manager from Keppe l Land , sha red , “This project presented us with a valuable learning e x p e r i e n c e . T h r o u g h

Mr Robert Chong (far right), Director of Group Human Resources, Keppel Corporation, and Mr Louis Lim (second from left), Director of Group Strategy & Development, Keppel Corporation, with members of the Global HIRA Safety Project

c o m m u n i c a t i n g w i t h the ground teams, we developed a set of minimum standards that is practical and has the buy-in of various stakeholders.” keppelite

Participants from the Sino-Singapore Tianjin Eco-City Investment and Development Co. Ltd learned about Keppel’s best practices through robust sharing sessions and interactive activities

Sharing best practicesKeppel is a proponent of strong corporate governance.On 2 and 3 March 2017, t r a i ne r s f rom Keppe l Corporation’s Group Risk & Compliance (GRC) and Group Internal Audit (GIA) departments were invited by the S ino-S ingapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) to conduct a two-day workshop on the Group’s corporate governance and best practices in Tianjin, China.

Through interactive activities such as case study discussions

and quizzes, 80 participants f r o m S S T E C l e a r n e d about Keppel’s regulatory c o m p l i a n c e p o l i c i e s and other best practices from risk management, whistle-blowing and fraud management to internal controls.

Mr Tay Lim Heng, CEO of SSTEC, shared, “The training has increased our staff’s overall awareness of internal controls and enhanced their competency in risk management and compliance.” keppelite

38 Empowering Lives


Insights for the future

Mr Tong Chong Heong (left), former CEO of Keppel Offshore & Marine, answered questions from the floor during the Q&A session, which was moderated by Mr Heng Chiang Gnee (right), ED, Singapore Maritime Institute

spoke about Keppel O&M’s transformative journey from a small ship repair yard to an industry leader.

Starting his career with Keppel and eventually a Foreman Engineer before rising to the rank of CEO, Mr Tong shared his unique insights on the running of the company, from macro strategies to the nuts and bolts.

The lecture, organised annual ly s ince 1986 in remembrance of the late Mr Chua Chor Teck, former MD of Keppel Shipyard and one of the pioneers of Singapore’s marine industry, attracted over 450 industry professionals, students and retirees. keppelite

Celebrating World Health DayOn 7 April 2017, Keppel FELS Brasil’s BrasFELS shipyard celebrated World Health Day with more than 100 members of the community in Angra dos Reis where the shipyard is located. These consisted mainly of relatives of students from Cornelis Verolme Municipal School where the event was held.

Health checks and lectures on oral health and spine care were conducted to raise awareness on health-related issues.

BrasFELS’ medical team was also on hand to offer checks

on height and weight, blood pressure, and blood glucose level for participants.

Paulo Roberto de Anastácio, a participant, commented, “Health is very important to me, especially since I have been treated for prostate cancer. I am here today to learn more about how to keep my body healthy.”

Separately, BrasFELS also organised a blood donation dr ive at Angra’s blood centre on 6 April 2017. 10 employees participated in the good cause.

Mr Marlin Khiew, President of BrasFELS, shared, “We care about the health and safety of our employees

and their families, and are glad to do our part for the community.” keppelite

In celebration of World Health Day, BrasFELS conducted health checks and lectures on health-related issues for members of the local community

At the 31st Chua Chor Teck Memorial Lecture held on 14 Feb rua r y 2017 a t S ingapore Polytechnic,

guest speaker Mr Tong Chong Heong, former CEO of Keppel Offshore & Marine (Keppel O&M),

Empowering Lives 39


Keppelites Around the World

Ms Mami Ogawa (seated, second from left) together with Mr Asao Mikami (standing, centre), President and CEO of Alpha Tokyo, and the rest of the Alpha Tokyo team

Ms Mami Ogawa, SVP of Alpha Investment Partners (Alpha) Tokyo, has been with the company since its infancy.

The Japan representative o f f i c e o f r e a l e s t a t e investment manager Alpha only comprised Mami and Mr Asao Mikami, President and CEO of Alpha Tokyo, when it was established in 2005, she shared.

“ I he lped Mikami - san establish the Tokyo office from scratch. It was a start-up environment and we were personally involved in everything from the telephone and computer systems, to the desks, chairs and even the coffee machines. We also set up the accounting system ourselves,” she said.

From humble beginnings“It was a tough but fun time. The fact that we put so much of our own blood and sweat into the company meant we were fully vested in its success. We wanted to make it work.”

Born in Tokyo, Mami moved to Wichita, the largest city in Kansas, the United States, at 16 and stayed with an American host family. There, she attended high school. She then moved to Austin, Texas, to attend university.

“It was tough because I didn’t speak English. It was also the Midwest – practically everybody had blue eyes and blonde hair, and I didn’t really fit in as an Asian. But I slowly got used to the environment. I joined the track and field

team in high school and happened to be good at it. That’s how I made friends.”

Post university, Mami’s first job was with Pavilion Technologies, an American technology company, in Austin. After a year, the company sent her to Tokyo to set up its first overseas office in Asia, where she worked for six years developing business in the region. The office was shut down as a result of the dot-com bubble burst, which was how she met Mr Mikami and was eventually given the opportunity to join Alpha Tokyo.

Since then, Alpha Tokyo’s headcount has grown to seven people, all of whom are involved in various aspects of

the real estate investment management business in Japan including acquisitions, asset management and financing, among others. At its peak, Alpha Tokyo had 2 3 p r o p e r t i e s i n i t s portfolio and 150 billion y e n ( a p p r o x i m a t e l y S$1.9 billion) of assets under management.

“We work very closely with the Singapore headquarters (of Alpha). Every single deal is interesting! All our interactions are with people – from investors to residential, retail and office tenants and our business partners – and our job is to ensure everyone is happy,” she said.

Outside of work, Mami enjoys nature and the great outdoors, and tries to bring her three-year-old son to parks, beaches and the mountains as often as possible. “We have four seasons in Japan. As long as it isn’t snowing, I cycle to and from work. The journey usually takes about 30 minutes, and I listen to my favourite podcast along the way. It’s especially nice to see the beautiful sakura (cherry blossom) flowers in spring and the golden leaves of ginkgo trees in autumn,” she said. keppelite

40 Nurturing Communities



Conserving our biodiversityLocated within the Singapore Botanic Gardens, the Keppel Discovery Wetlands is the first project in Southeast Asia to recreate a freshwater swamp forest. Officially opened by Prime Minister of Singapore Mr Lee Hsien Loong on 31 March 2017, the venue allows members of the public to experience this unique natural habitat in the heart of the city for the very first time.

Gracing the opening of the Keppel Discovery Wetlands was Prime Minister of Singapore Mr Lee Hsien Loong (sixth from right). Accompanying him were Mr Lawrence Wong (fourth from left), Minister for National Development and Second Minister for Finance; Dr Vivian Balakrishnan (far right), Minister for Foreign Affairs; Ms Sim Ann (second from right), Senior Minister of State, Ministry of Culture, Community and Youth and Ministry of Trade and Industry; Mr Melvin Yong (third from right), Member of Parliament, Tanjong Pagar GRC; as well as Dr Lee Boon Yang (fifth from right), Chairman of Keppel Corporation; Mr Loh Chin Hua (fourth from right), CEO of Keppel Corporation; Mr Chan Hon Chew (second from left), CFO of Keppel Corporation; and Keppel’s senior management

The Keppe l D i s cove ry Wetlands was official ly opened by Prime Minister of Singapore Mr Lee Hsien Loong on 31 March 2017. The area was established with a $2.08 million commitment f r o m K e p p e l , w h i c h supported the restoration of a freshwater forest wetland ecosystem historically found in the vicinity of the Singapore Botanic Gardens, Singapore’s first UNESCO World Heritage site.

The Keppe l D i s cove ry Wetlands is part of a new 10-hectare conservation core at the S ingapore Botanic Gardens called the Learning Forest, which also includes the SPH Walk of Giants – a collection of some of the region’s tallest tree species, a bamboo garden, as well as a showcase of wild fruit trees.

The restored 1.8-hectare Keppel Discovery Wetlands

was designed with ecological considerations in mind, and includes a carefully curated plant collection of over 200 species. The Wetlands restores the area’s existing water sources by creating a linked series of five water bodies that connect to the Swan Lake.

The Wetlands includes the Discovery Trail, Botanists’ Boardwalk, Orchid Gardens and Pulai Marsh. Playing

host to a diverse range of wetland plants and animals, the Wetlands enhances the biodiversity found in the area and provides opportunities for the public to access and experience a freshwater forest wetland habitat right in the heart of the city.

At the launch of the Learning Forest, PM Lee shared, “Our Botanic Gardens thrives not because of the interesting mix of plants, but because

Nurturing Communities 41


and Second Minister for F inance, and Dr V ivan Balakrishnan, Minister for Foreign Affairs, planted trees alongside Dr Lee and Mr Loh Chin Hua, CEO of Keppel Corporation. Also participating in the tree planting were advisers for Holland-Bukit Timah GRC and Tanjong Pagar GRC and Dr Teo Ho Pin, Mayor of North West District, as well as corporate partners, students and volunteers. A total of 80 trees from 20 different species were planted.

Led by Dr Lee, sen ior management from Keppel Corporation accompanied PM Lee on a guided tour of the Wetlands and were introduced by NParks officials and student representatives to its key features and biodiversity.

Also present at the event were representatives from Keppel Volunteers, who will serve as Green Ambassadors for the Wetlands.

One of the volunteers, Avery Gan, Assistant Accountant at Keppel Telecommunications & Transportation, shared, “I am proud to be part of this momentous occasion. The flora and fauna found in the Keppel Discovery Wetlands are truly beautiful and I am sure that visitors will gain a greater appreciation of S ingapore’s natura l environment once they experience the Wetlands!” keppelite

PM Lee (centre, in red) and Minister Lawrence Wong (back row, in white), gamely pose for a wefie with Keppel Volunteers at the official opening of the Keppel Discovery Wetlands

Visitors can discover the diverse flora at the Keppel Discovery Wetlands

within it, there is life. It is teeming with activity. It is loved and nurtured by the community, by all age groups. I would l ike to thank everyone who has worked so hard to create this Learning Forest – corporate partners such as Keppel and Singapore Press Holdings, the many volunteers who spend time planting trees or leading guided walks. For them, it is a labour of love.

“Many of the trees in the Learning Forest are stil l

young. But gradually, year by year, they will grow and mature. In the fullness of time, they will enrich our natural her itage. More Singaporeans will grow to love it, and I hope we can all care for and nurture it so that future generations will also get the chance to enjoy this green gem and form lasting, precious memories of their own.”

Dr Lee Boon Yang, Chairman of Keppel Corporation, commented, “The Keppel

Discovery Wetlands provides a unique opportunity for Singaporeans to learn about our amazing biodiversity. This initiative resonates with Keppel’s commitment to sustainable development. We hope that all visitors will be inspired to better understand and appreciate S i n g a p o r e ’s n a t u r a l environment.”

To mark the occas ion, PM Lee together with Mr Lawrence Wong, Minister for National Development




An immersive outdoor experience The various features of the Keppel Discovery Wetlands are complemented by walking trails and boardwalks that create an immersive outdoor experience for visitors. Highlights include the Orchid Islands, Botanists’ Boardwalk and Pulai Marsh.

ORCHID ISLANDS S ingapore has some 228 species of native orchids, of which 170 are considered extinct, 50 are critically endangered, three are vulnerable and only five are common. NParks aims to propagate threatened orchid species and reintroduce extinct ones.

T h e O r c h i d I s l a n d s showcase a large number of native orchids, many of which have been conserved through NParks’ native orchid conservation programme. The public will be able to admire the forms and colours displayed by these native

was formerly a stream running through the area. Surveys have indicated that the entire area was once a wetland forest habitat. One of the trees catalogued is the Marsh Pulai, a magnificent tree with swollen buttresses that grows in permanently f looded ground, and which has given the area its name.

The water in the Pulai Marsh supports a rich variety of plants and wildlife and eventually feeds into the Gardens’ Swan Lake.

Orchid Islands Botanists’ Boardwalk


orchids in their natural habitat.

BOTANISTS’ BOARDWALK At the Botanists’ Boardwalk, v is i tors wi l l be able to learn about the historic discoveries made by the Gardens’ earlier botanists. These botan i s t s made frequent expeditions to the swamps of Borneo, across the mountain ranges of the Malay Peninsula and further afield to gain a better understanding about the ecology of the region. They also recorded and left behind a rich trove of writings about their travels.

For the first time in the

history of the Gardens, these journeys of discovery are brought to life at the Bo tan i s t s ’ Boa rdwa lk , through signs installed along the 50-metre long boardwalk detai l ing stories of the botan i s t s ’ adventures . The landscape around the boardwalk features various p lants that have been collected from around the region and named in honour of our botanical pioneers.

PULAI MARSHThe Pulai Marsh is the G a r d e n s ’ p i o n e e r i n g attempt at recreating a freshwater forest wetland. Historic maps of the area from as far back as the 1860s showed that there



Encouraging green practices

Rallying behind the call to combat climate change, Keppel demonstrated its commitment to saving the planet by part ic ipating i n E a r t h H o u r o n 25 March 2017. F rom 8.30pm to 9.30pm, non-essential lights at various Keppel yards, plants and buildings, in Singapore and overseas, were turned off in a symbolic gesture of support.

Organised by the World Wide Fund for Nature, the annual event this year united individuals, communities and organisations from an unprecedented 187 countries and territories.

In addition to switching off non-essential lights, Keppelites took steps to r a i s e e n v i r o n m e n t a l awareness.

Employees at Keppel Subic Shipyard demonstrated their commitment by writing pledges to reduce their carbon footprint.

“Part ic ipat ion in Earth H o u r s y m b o l i s e s o u r commitment to the global movement to protect our planet,” said Mr Ezra Chiam, President of Keppel Subic Shipyard.

“ I n d i v i d u a l s a n d o r g a n i s a t i o n s p l a y a n i m p o r t a n t ro l e i n environmental conservation. Our act ions today wi l l impact the environment for future generations,” said M r W o n g J e n M i n g , P r e s i d e n t o f K e p p e l Batangas Shipyard.

Also participating in Earth Hour were the Keppel Seghers Tuas Waste-to-

Energy (WTE), Senoko WTE, Ulu Pandan NEWater and Keppel Merlimau Cogen plants in Singapore. Talks on energy conservation and email broadcasts encouraged Keppelites to lead more environmentally-friendly lifestyles.

At the Domest ic Sol id Waste Management Centre in Qatar, the Operations and Maintenance team minimised power usage by raising the temperature of the air conditioning.

N o n - e s s e n t i a l l i g h t s were turned off at 38 of Keppel Land’s buildings in Singapore, Indonesia, Vietnam, Myanmar and China. Similarly, the lights were turned off at Keppel Te lecommunicat ions & Transportation’s facilities in Singapore and China.

The Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC) organised a night cycling event to mark Earth Hour. Over 50 residents and employees of the Eco-City cycled approximately 6 km around the Eco-Business Park.

Mr Tay Lim Heng, CEO of SSTEC, shared, “Cycling is a great mode of green t ranspor ta t ion a s the amenities in the Eco-City are within cycling or walking distance of residential areas. We are happy to see residents and employees join us to promote environmentally-friendly lifestyles in the Eco-City.” keppelite

Residents and employees of the Eco-City celebrated Earth Hour with a night cycling event around the Eco-Business Park



Championing good causesAs a responsible corporate citizen, Keppel Land strives to create positive economic, environmental and social impacts in the communities where it operates. The months of March and April 2017 saw the Keppel Land group supporting various environmental initiatives.

NATIONAL GEOGRAPHIC EARTH DAY RUNThe Singapore leg of the National Geographic Earth Day Run, for which Keppel Land was tit le sponsor, completed its second edition on 23 April 2017, with about 2,200 runners joining the good cause. The event this year marked Singapore’s f irst mass-run powered solely by renewable energy, and driven by zero-waste initiatives. Eight percent of the total registration fees will go to the World Wide Fund for Nature (WWF), in support of its education initiatives on climate change.

The event was graced b y G u e s t - o f - H o n o u r, Mr Masagos Zulkifli, Minister for the Environment and Water Resources. He was accompanied by Mr Rohit D’Si lva, Execut ive Vice President, Commercial, Asia-Pacific and the Middle East, FOX Networks Group, and Mr Ang Wee Gee, CEO of Keppel Land, as they flagged off runners from The Meadow at Gardens by the Bay.

Being the title sponsor, Keppel Land rallied over 170 of its tenants and staff across the Keppel Group as

well as members of Running Hour, a running club which promotes integration of people with special needs, to participate in the run.

Mr Ang Wee Gee, CEO of Keppel Land, said, “We believe that sustainability is key to future-proofing our bus iness . Through championing initiatives such as the National Geographic Earth Day Run, we hope to promote an environmentally-friendly mindset within the community.”

ECO ACTION DAY Eco Action Day is an annual

nationwide campaign in Singapore which raises awareness on environmental protection.

Over the years, the Eco Action Day has grown into an established platform for o rgan i sa t ions and individuals to pledge positive environmental act ions. Running from Apr i l to June this year, the theme for the event this year is ‘Green the Red Dot, Join the Movement’, which calls on participants to commit to actions that reduce energy and resource consumption, thus minimising carbon emissions.

This year, Keppel Land c a m e o n b o a rd a s a Strategic Partner for the fourth consecutive year, while Keppel REIT was the official Building Sponsor. Keppel Land also reached out to rally staff, tenants and the public to make eco-pledges. Eco-roadshows were held at Keppel Land and Keppel REIT’s buildings, namely Keppel Bay Tower, Bugis Junct ion Towers, Keppel Towers and Ocean Financial Centre. keppelite

Keppel Land, title sponsor of the National Geographic Earth Day Run, rallied over 170 of its tenants, staff across the Keppel Group and members of Rushing Hour, a running club which promotes integration of people with special needs, to participate in the event



Spurring sporting excellenceIn support of local sporting talent, Keppel has been a sponsor of the Singapore Table Tennis Association (STTA) since 2011.

On 15 February 2017, STTA celebrated the sporting excellence of outstanding athletes who have contributed to the local table tennis scene at this year’s Keppel-STTA Awards. Gracing the event was Guest-of-Honour Mr Teo Ser Luck, Minister of State for the Ministry of Manpower and Mayor of North East CDC.

A total of 11 awards were conferred upon athletes and coaches with standout performances at regional and international tournaments, as well as individuals who had

demonstrated commendable character traits. Ms Ellen Lee, PBM and President of STTA, shared, “This is the seventh edition of our awards ceremony, an annual celebration of our sporting achievements. We are grateful to Keppel Corporation for being our

major sponsor of all the cash awards since 2013.”

Commenting on Keppel’s support for STTA, Mr Loh Chin Hua, CEO of Keppel Corporation, said, “We would like to congratulate STTA on its accomplishments, and we wish our Singapore paddlers every success as

Celebrating the achievements of Singapore’s national paddlers at the Keppel-STTA Awards were Guest-of-Honour Mr Teo Ser Luck (back row, sixth from left), Minister of State, Ministry of Manpower and Mayor of North East CDC, Ms Ellen Lee (back row, second from left), PBM and President of STTA; and Mr Ho Tong Yen (back row, seventh from left), GM of Group Corporate Communications, Keppel Corporation

Spreading cheerAs a responsible corporate citizen, Keppel strives to n u r t u r e c o m m u n i t i e s wherever it operates.

On 7 Ap r i l 2017 , 34 volunteers from Keppel Land China Tianjin Project Company, Keppel Logistics (T ian j in Eco-C i ty ) and New Area Sino-Singapore O u t s o u r c i n g S e r v i c e v i s i t e d t h e S u n s h i n e Welfare Home in Tianjin Binhai New Area (TBNA) to bring warmth and cheer to

more than 80 children with disabilities.

Led by Mr Lee Wei Ren, Project Head, the volunteers engaged the children in activities such as making p las t i c ine f igures and o r i g a m i , a n d p l a y i n g interactive games.

After an entire day of fun and learning, the children were treated to a sumptuous meal of steamed dumplings made by the volunteers.

“Seeing how the children wolfed down our dumplings and looked at us with happiness really makes all the

Keppel Volunteers in Tianjin touched the hearts of children with disabilities through interactive activities

effort worthwhile,” shared Teng Yunfei, Administrative Clerk of Keppel Land China Tianjin. keppelite

they strive for even greater heights.

“Keppel is honoured to have played a part in this journey through our support of the Keppel-Clementi Zone Training Centre to nurture young talents and the Keppel-STTA Awards Night to recognise sporting excellence.” keppelite



Empowering the next generationBrasFELS’ annual Corporate Social Responsibility initiative, t h e Te a c h - I t - F o r w a rd programme, commenced its third edition in March 2017.

EDUCATIONAL VISITOn 14 March 2017, a group of ninth-grade students from the Mauro Sérgio da Cunha Municipal School visited BrasFELS.

Together with teachers and representatives from the

Angra dos Reis’ Municipal Secretary of Education, the students were welcomed by a BrasFELS team led by Mr Luiz Caetano, Director (Operations).

The students learned about the shipyard’s core values, history and operations. BrasFELS’ employees shared their personal and professional journeys, inspiring the students to persevere in the face of challenges. The students also

Mr Luiz Caetano (left, standing), Director (Operations) of BrasFELS, shared stories of his professional life with students from the Mauro Sérgio da Cunha Municipal School

went on a guided tour of the shipyard.

LEARNING CLASSESOn 15 March 2017, Keppel Volunteers from BrasFELS initiated the first round of Portuguese and Mathematics t u i t i o n c l a s s e s f o r a group of 25 students from the third grade of the Cornelis Verolme Municipal School. The classes will be conducted once every three months.

Besides helping the students with their studies, the volunteers encourage them to apply sound values in their daily lives.

M r C a e t a n o s h a r e d , “Children today are our p o t e n t i a l e m p l o y e e s tomorrow. We believe it is important to inspire the students so as to help them make better decisions in the future.” keppelite



Making a differenceKeppel Volunteers were out in force to make a positive impact on communities in the first quarter of the year.

CAREER CAPERSI n co l l abo ra t i on w i th Children’s Wishing Well, 2 8 v o l u n t e e r s f r o m Keppe l I n f r a s t r u c tu re hosted 14 students from underprivileged families to an educational tour of the Keppel Seghers Ulu Pandan NEWater and Keppel Seghers Tuas Waste-to-Energy Plants on 23 March 2017.

The students learned how NEWater is produced as well as how municipal solid waste is converted into energy through incineration.

The plants’ engineering and safety officers also s h a r e d t h e i r w o r k e xpe r i ence s w i t h t he students, introducing them to potential career options. After the site tours, the students participated in

more light-hearted activities, such as t ry ing on the workers’ Personal Protection Equipment and building structures out of recycled materials.

LEARNING AND BONDING On 16 March 2017, 39 volunteers from Keppel Shipyard brought 38 children from Care Corner on a trip to the Science Centre Singapore.

The children were visibly enthralled by the various e x h i b i t s a n d e a g e r l y completed their activity worksheets with the help of the volunteers.

Toh Ting Shu, Assistant Commerc i a l Manager, Keppel Shipyard, remarked, “Seeing how fascinated the children were with the displays evoked childhood memories, making this experience an especially meaningful and nostalgic one.”

FESTIVE CHEER On 10 February 2017, 10 volunteers from Keppel Te lecommunicat ions & Transportation organised a C h i n e s e N e w Ye a r celebration for the children of Care Corner.

It was an afternoon of fun and games for the children, who were treated to a magic show and received goodie bags fi l led with treats.

Jeanicca Chow, Assistant Sh i pp i ng Manage r a t Keppel Logistics, shared, “It gave me great joy to see the children excitedly tossing the yu sheng and participating in the various activities.”

GIFT OF LIFEI n c o n j u n c t i o n w i t h Valentine’s Day, Keppel Vo l u n t e e r s p a r t n e re d with the Philippine Red Cross to organise a blood donation drive at Keppel

Keppel Volunteers brought festive cheer to the children of Care Corner

Subic Shipyard and Keppel Batangas Shipyard.

The blood donation drive received overwhelming support from workers at the yards, with a total of 170 bags of blood being donated.

Mr Leong Kok Weng, P r e s i d e n t o f K e p p e l Philippines Marine, shared, “Since its official launch in June 2016, Keppe l Volunteers in the Philippines has been actively supporting community programmes to pave the way forward for the community.”

In January 2017, Keppel Subic Shipyard was awarded a Certificate of Appreciation from the Philippine Red Cross’ National Office in recognition of its promotion of blood donation in the country. keppelite

Workers from Keppel Subic Shipyard and Keppel Batangas Shipyard participated in a blood donation drive organised by Keppel Volunteers and the Philippine Red Cross

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Keppel Land announced on 19 March 2017 that through its subsidiary, Krystal Investments Pte Ltd, it had acquired from its Vietnamese p a r t n e r , S o u t h e r n Wate rbor ne Transpor t Corporation, an additional 16% stake in Keppel Land WATCO I to V, the joint venture entities for Saigon Centre in Ho Chi Minh City, Vietnam. The consideration for the purchase is VND 845.9 billion (approximately S$53.5 million).

Following the acquisition, Keppel Land has increased its aggregate interest in the joint venture companies for Saigon Centre Phases One and Two (Keppel Land WATCO I, II and III) from

approximately 45.3% to 53.5%, and its aggregate interest in the joint venture companies for subsequent phases of Saigon Centre (Keppel Land WATCO IV and V) from 68% to 76.2%.

Mr Ang Wee Gee, CEO of Keppel Land, said, “Keppel Land is committed to grow its commercial portfolio in key Asian cities. Vietnam continues to attract foreign direct investments which will drive positive demand in the property market from homes to offices and mixed-use developments. Our increased stake in Saigon Centre reflects Keppel Land’s confidence and long-term commitment to contribute to sustainable urbanisation in

Vietnam through our quality portfolio of properties.”

To be developed in several phases, Saigon Centre is located on a two-hectare prime site in the heart of the central business district in District 1. It is also within walking distance of two p l anned unde rg round subway stations located at the Ben Thanh Market and the Opera House.

Phase One o f Sa igon Centre, completed in 1996, compr i ses a 25-s torey mixed-use development including a three-storey retai l podium, Grade A office space and 89 luxury serviced apartments. The office tower is 100% leased

to the diplomatic corps, multinational companies as well as banking and f i nanc i a l i n s t i t u t i ons . Tenants include DBS Bank, AIG, Reuters and Mitsubishi Corporation.

Phase Two of Saigon Centre will comprise 55,000 sm of pr ime reta i l space , 44,000 sm of premium Grade A office space as well as 195 luxury serviced apartments when ful ly completed in end-2017.

The retail mall was opened on 1 August 2016 with Takashimaya department store as the anchor tenant and has received close to six million visitors since its opening. keppelite

Keppel Land increases stake in Saigon Centre

Keppel Land has acquired an additional stake in the joint venture entities for Saigon Centre in Ho Chi Minh City, Vietnam. The retail mall (pictured), under Phase 2 development, was opened in August 2016 with Takashimaya department store as the anchor tenant

committed to sustainable developmentgrowing as onekeppel 24 spotlight on hse 32 committed to...

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