Capturing growth opportunities - Keppel Land China · hearts and minds to it. We have just...

Capturing growth opportunities

Issue 1 / 2018www.kepcorp.com/ekeppelite

MCI (P) 042/01/2018

Preferred partner 22

Driving

innovation 26

Making a

difference 47

Keppelite I Issue 1 / 2018

Contents2

<< Cover image: Present at the listing of Keppel-KBS US REIT are (from L-R) Mr Andy Gwee, CFO of Keppel-KBS US REIT Management; Mr Chan Hon Chew, CFO of Keppel Corporation; Mr Rahul Rana, MD & Partner of KBS Pacific Advisors; Mr Loh Boon Chye, CEO of Singapore Exchange (SGX); Mr Keith Hall, Co-Founder of KBS Capital Advisors; Mr Peter McMillan III, Co-Founder of KBS Capital Advisors and Chairman of Keppel-KBS US REIT Management; Mr Simon Lim, Head of Equity Capital Market (Sectors) of SGX; Dr Lee Boon Yang, Chairman of Keppel Corporation; Mr Richard Bren, Partner of KBS Pacific Advisors; Mr Loh Chin Hua, CEO of Keppel Corporation; Ms Christina Tan, CEO of Keppel Capital; and Mr David Snyder, CEO of Keppel-KBS US REIT Management

Editorial Team

Editorial AdvisorHo Tong Yen

EditorSue-Ann Huang

Copy EditorAriel Tee

Editorial TeamAna Luisa Cruz, Ang Lai Lee,

Brian Lee, Casey Chiang,

Cheryl Goh, Chua Sian Howe,

Donald Sng, Eileen Tan,

Elizabeth Widjaja, Grace Chia,

Guo Xiaorong, Han Sufen,

Hoo Yao Lin, Ivana Chua, Kevin Ho,

Lee Wan Jun, Liang Hui Hui,

Priscilla Chong, Razali Maulod,

Ricky Ling, Roy Tan, Serena Toh,

Sharon Woo, Song Jia Jia,

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]

Website: www.kepcorp.com/ekeppelite

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SUSTAINING GROWTHNew chapter of growth 6

Year in review 11

An exchange with stakeholders 14

Sustainable returns 16

Stable distributions

Sharpening core capabilities 17

Steady growth

Successful listing of Keppel-KBS US REIT 18

A landmark project for HK’s waste 20 management

Acquisition of two prime sites in HCMC 21

Preferred partner 22

Keppel Logistics launches UrbanFox 23

Keppel delivers 11th ice-class vessel 24

Developing premium homes in 25 Bangkok’s CBD

Enhancing connectivity

SPECIAL FOCUSSpurring InnovationsDriving innovation 26

A model for smart cities 29

Shaping the future

Execution excellence 30

Keppel delivers first rig of 2018

Bolstering leadership 31

Advancing solutions for cleaner energy 32

Milestones in 2017 33

Connecting with Singaporeans abroad 36

Strengthening presence in Wuxi

Award-winning greens 37

Keppel Land divests stake in West Bali site

HSEMATTERSCommitted to safety 38

Real estate luminary 40

Green recognition

EMPOWERING LIVESNights to remember 41

Tribute to a Keppel stalwart 42

Powering the future

In it to win it 43

Keppelites Around the WorldBroadening horizons in the Middle East 44

Celebrating strong ties 45

Developing skillsets

NURTURING COMMUNITIESPicture perfect 46

Brazilian melodies

Keppel VolunteersMaking a difference 47

GETTING TO KNOW YOUSpotlight on: Christina Tan 50

BACK PAGEKeppel Infrastructure jointly awarded 52 multi-billion dollar contract

24 41 47


Sustaining Growth 3 Sustaining Growth 3

Dear Keppelites,

New Year Message from the CEO

2018 marks Keppel’s 50th anniversary. In the past half century, through the hard work and sacrifices of many generations of Keppelites, the Company has grown from a humble shipyard to the multi-business, multinational company it is today. Through it all, Keppel has been constantly evolving, adapting and overcoming myriad challenges, driven by our firm belief that there is no obstacle we cannot surmount together, if we put our hearts and minds to it.

We have just concluded one of the most eventful years in Keppel’s growth story. The global resolution that Keppel Offshore & Marine recently reached with criminal authorities in the US, Brazil and Singapore on the corruption payments in Brazil drew a line under what has been a difficult chapter for the Group. The revelations must have come as a rude shock for Keppelites, just as they did for the Board and management of the Company, when internal investigations first revealed the extent of the issues. The penalties are painful and will hurt us, but I am confident that we can make up for the financial loss with future profits. In time, through our actions and response, we will also re-gain the trust that had been lost.

In the past year, against the backdrop of the continuing downturn in the offshore and marine (O&M) industry, Keppelites worked hard to deliver our

projects, enter new markets, establish new vehicles and engines for growth, and push ahead with our efforts to innovate, collaborate and hunt as a pack.

We have much to show for our efforts. We delivered the world’s first converted Floating LNG vessel, commenced the construction of the i con ic Keppe l Mar ina East Desalination Plant, won the bid for Hong Kong’s first Integrated Waste Management Facility, and launched the new Keppel-KBS US REIT, among other initiatives. While our O&M business sti l l faces considerable chal lenges, other engines have picked up the pace, with property as the largest contributor.

Within the Company, we have also embarked on transformational projects – Project Autobots and Project HaRmony – to digitise our infrastructure and harmonise the Group’s finance, payroll, procurement and human resource functions, which will allow us to reap efficiencies and achieve better control in the digital economy.

It has become increasingly apparent to stakeholders, both internal and external, that Keppel is not just a group of diverse companies that share a common name, but an eco-system of companies working together to provide compelling solutions for sustainable urbanisation.

In line with being OneKeppel, we will be refreshing Keppel’s Mission to depict this shared purpose. Our Mission, which will be revised with immediate effect, will say, “Guided by our operating principles and core values, we will deliver solutions for sustainable urbanisation profitably, safely and responsibly”. The refreshed Mission more closely reflects the Group’s current focus, and will better prepare and position us to compete internationally as we move ahead.

Continues on page 4...

4 New Year Message from the CEO


...continued from page 3.

In 2017, we established Keppel Urban Solutions as a platform to integrate the Group’s different capabilities, and also to work with like-minded partners and capture opportunities in the urbanisation megatrend as a master developer of large scale projects. Whether it is bui lding sustainable townships such as the Sino-Singapore Tianjin Eco-City, or innovative smart districts such as Saigon Sports City, or developing and operating LNG solutions, or energy efficient data centres, we can do better by collaborating, and harnessing the synergies of being a multi-business group.

The world is evolving rapidly and many traditional businesses are being disrupted. To thrive in this fast changing world, we need to be entrepreneurial and innovative. Keppel has a long history of innovating for solutions, but we need to do so at a higher speed and scale. This does not mean that we should disregard risk management, or our operating principle of being financially disciplined, but we must be

prepared to experiment, and expand the bandwidth for innovation and enterprise in the company.

We recently announced that Keppel Technology and Innovation (KTI) will be established with effect from January 2018, to sharpen our focus on innovation and be a catalyst for change. Through KTI, we aim to change how the Group looks at R&D and innovation – not as an incumbent making incremental changes, but an audacious insurgent, ready to disrupt the market or even ourselves! Beyond pursuing innovation in products and processes, we should think about how we can create, grow and capture value. This would include innovation in business models and the way we work, as well as how we collaborate with third part ies to accelerate change.

To further foster an open, inclusive culture where ideas flow freely, we will launch a collaborative online platform, initially among the staff of Keppel Corporation and Keppel Enterprise

Services, where anyone and everyone can contribute and exchange ideas. Beyond deepening staff engagement, we hope that some of these discussions would result in improvements in our work processes, or even new business initiatives for the Group. If this community takes off, we can consider implementing the platform across our other business units.

Even as we emphasise entrepreneurship and risk-taking, it is vital that we operate strictly within international laws and regulations. Since 2015, we have put in place significant enhancements to the compliance and internal controls systems across the Keppel Group. These are not just bureaucratic procedures, but necessary measures to protect all of us, and the Company, from any lapses. Indeed, our core values of accountability and integrity must serve as the true north to guide all Keppelites, as we operate in different jurisdictions and complex environments around the world.

Companies today are not just expected


Dear Keppelites,

2018 marks Keppel’s 50th anniversary. In the past half century, through the hard work and sacrifices of many generations of Keppelites, the Company has grown from a humble shipyard to the multi-business, multi-national company it is today. Through it all, Keppel has been constantly evolving, adapting, and overcoming myriad challenges, driven by our firm belief that there is no obstacle we cannot surmount together, if we put our hearts and minds to it.


In the past year, against the backdrop of the continuing downturn in the offshore and marine (O&M) industry, Keppelites worked hard to deliver our projects, enter new markets, establish new vehicles and engines for growth, and push ahead with our efforts to innovate, collaborate and hunt as a pack.

We have much to show for our efforts. We delivered the world’s first converted Floating LNG vessel, commenced the construction of the iconic Keppel Marina East Desalination Plant, won the bid for Hong Kong’s first integrated Waste Management Facility, and launched the new Keppel-KBS US REIT, among other initiatives. While our O&M business still faces considerable challenges, other engines have picked up the pace, with property as the largest contributor.




In 2017, we established Keppel Urban Solutions as a platform to integrate the Group’s different capabilities, and also to work with like-minded partners and capture opportunities in the urbanisation megatrend as a master developer of large scale projects. Whether it is building sustainable townships such as the Sino-Singapore Tianjin Eco-City, or innovative smart districts such as Saigon Sports City, or developing and operating LNG solutions, or energy efficient data centres, we can do better by collaborating, and harnessing the synergies of being a multi-business group.

Companies today are not just expected to maximise shareholders’ returns, but to do so in the right manner, factoring environmental, social and governance issues. As we continue to focus on executing our businesses well, we must also pay increasing attention to running our businesses sustainably. I am heartened that Keppel’s sustainability efforts were recognised when we continued to be included in the DJSI Asia Pacific Index and MSCI Global Sustainability Index, among others. Keppel was also a winner of the Security Investors Association (Singapore)’s inaugural Sustainability Award.

Safety is one of our core values, and a key element of the Keppel identity. In 2017, Keppel again won the highest number of awards at the Singapore Workplace Safety and Health Awards. We have also seen improvements in our safety performance. However, despite our efforts, we lost three of our colleagues during the year. We must soldier on in our safety journey, to ensure that everyone goes home safe, every day.

Despite an eventful year, Keppelites gave generously of their time and talent away from the workplace, clocking over 11,000 hours of volunteer work, exceeding our target of 10,000 hours. Keppel volunteers brought cheer to more than 1,000 beneficiaries, including low-income families and patients suffering from chronic illnesses. During the year, the Keppel Discovery Wetlands at the Singapore Botanic Gardens, which was restored with Keppel’s contribution, was officially opened by Singapore’s Prime Minister Lee Hsien Loong. It has attracted more than half a million visitors so far. Beyond Singapore, our CSR efforts have also positively touched lives in China, Vietnam, Indonesia and Brazil, among other places. Thank you Keppelites for contributing positively to the communities, wherever we operate.

As we celebrate our Golden Jubilee, let us draw inspiration from our proud heritage, learn valuable lessons from the past and work closely together as OneKeppel to build a stronger, more innovative, and more sustainable company - one that can outlast all of us.

I wish you and your loved ones a happy new year!

Yours sincerely,

LOH CHIN HUA CEO KEPPEL CORPORATION

The world is evolving rapidly and many traditional businesses are being disrupted. To thrive in this fast changing world, we need to be entrepreneurial and innovative. Keppel has a long history of innovating for solutions, but we need to do so at a higher speed and scale. This does not mean that we should disregard risk management, or our operating principle of being financially disciplined, but we must be prepared to experiment, and expand the bandwidth for innovation and enterprise in the company.

We recently announced that Keppel Technology and Innovation (KTI) will be established with effect from January 2018, to sharpen our focus on innovation and be a catalyst for change. Through KTI, we aim to change how the Group looks at R&D and innovation – not as an incumbent making incremental changes, but an audacious insurgent, ready to disrupt the market or even ourselves! Beyond pursuing innovation in products and processes, we should think about how we can create, grow and capture value. This would include innovation in business models and the way we work, as well as how we collaborate with third parties to accelerate change.

To further foster an open, inclusive culture where ideas flow freely, we will launch a collaborative online platform, initially among the staff of Keppel Corporation and Keppel Enterprise Services, where anyone and everyone can contribute and exchange ideas. Beyond deepening staff engagement, we hope that some of these discussions would result in improvements in our work processes, or even new business initiatives for the Group. If this community takes off, we can consider implementing the platform across our other business units.



Dear Keppelites,














Yours sincerely,







New Year Message from the CEO 5

to maximise shareholders’ returns, but to do so in the right manner, factoring environmental, social and governance issues. As we continue to focus on executing our businesses well, we must also pay increasing attention to running our businesses sustainably. I am heartened that Keppel’s sustainability efforts were recognised when we continued to be included in the DJSI Asia Pacific Index and MSCI Global Sustainability Index, among others. Keppel was also a winner of the Security Investors Association (Singapore)’s inaugural Sustainability Award.


innovative, and more sustainable company – one that can outlast all of us.


Yours sincerely,

Loh Chin HuaCEOKeppel Corporation

Despite an eventful year, Keppelites gave generously of their time and talent away from the workplace, c locking over 11,000 hours of volunteer work, exceeding our target of 10,000 hours. Keppel volunteers brought cheer to more than 1,000 beneficiaries, including low-income families and patients suffering from chronic illnesses. During the year, the Keppel Discovery Wetlands at the Singapore Botanic Gardens, which was restored with Keppel’s contribution, was officially opened by Singapore’s Prime Minister Lee Hsien Loong. It has attracted more than half a million visitors so far. Beyond Singapore, our CSR efforts have also positively touched lives in China, Vietnam, Indonesia and Brazil, among other places. Thank you Keppelites for contributing positively to the communities, wherever we operate.

As we celebrate our Golden Jubilee, let us draw inspiration from our proud heritage, learn valuable lessons from the past and work closely together as OneKeppel to build a stronger, more


Dear Keppelites,














Yours sincerely,







Dear Keppelites,














Yours sincerely,






6 Sustaining Growth


6 Sustaining Growth

New chapter of growthAmidst a challenging environment, Keppel remained resilient, underpinned by our multi-business strategy. Mr Loh Chin Hua, CEO of Keppel Corporation, discussed the Group’s strategic developments and performance at the Company’s 4Q & FY 2017 results briefing to media and analysts. Keppelite reproduces his speech.

2017 was an eventful year.

The global resolution reached by Keppel Offshore & Marine (Keppel O&M) over past misdeeds in Brazil brings an end to what has been a painful chapter for Keppel – one that we have recognised and dealt firmly with. This is not Keppel. We care not just about results, but also how they are obtained.

The Board and Management have thoroughly investigated the allegations and dealt with the issues that were uncovered. We have put in place enhanced compliance c o n t r o l s , i n c l u d i n g comprehensive training and certification, to prevent any repeat of such misdeeds.

Our core value of integrity proh ib i t s Keppe l f rom engaging in any unethical practices or behaviour. This is absolutely clear to me as CEO. We will not tolerate any behaviour or action from Keppelites that deviates from this fundamental principle. The Board and Management are determined to regain the trust that has been lost. We will win business legally and ethically, based

on our collective strengths of superior customer-centric solutions and good track record of execution.

With this chapter now behind us, we look forward to continuing on our growth trajectory and building a more disciplined and sustainable business - a Keppel that will remain trusted and admired by all our stakeholders.

RESILIENCE THROUGH MULTI-BUSINESS STRATEGY In the past year, amidst a challenging environment, Keppel delivered on projects, entered new markets , seized new opportunities, and established vehicles and engines for growth. T h e s e i n c l u d e t h e del ivery of the world’s first converted Floating Liquefied Natural Gas (FLNG) vessel , commencement of construct ion of the iconic Keppel Marina East Desalination Plant (KMEDP), winning the bid for Hong Kong’s first Integrated Waste Management Facility, and the successful listing of the new Keppel-KBS US REIT on the Singapore Exchange, to name a few examples.

FINANCIAL PERFORMANCE For FY 2017, the Group achieved a net profit of $217 million, after taking into account the one-off financial penalty of $570 million, and $49 million of related legal, accounting a n d f o r e n s i c s c o s t s . Excluding these one-off items, the Group would have achieved a net profit of $836 million, an increase of 7% over FY 2016, underpinned by earnings growth in the Property, Infrastructure and Investments Divisions.

The Group’s Economic Value Added for the year was negative $834 million, while our Return on Equity (ROE) was 1.9%. Excluding the one-off financial penalty and related costs, our ROE would have been 7%.

Free cash inflow for 2017 was $1.8 billion, more than three times the $540 million for 2016. Net gearing was 0.46x at the end of 2017, lower than the 0.56x at the end of 2016, or 0.50x at the end of September 2017.

As we had announced earlier, the Company will ring-fence

the one-off financial penalty and related costs when considering the dividend pay-out for the year. Taking into account the Group’s improved performance, excluding Keppel O&M’s one-off financial penalty and related costs, our stronger cash flow position and the lower gearing, the Board of Directors will be proposing a final dividend of 14 cents per share, compared to the final dividend of 12 cents declared for 2016. We think this is a fiscally prudent proposal. Together with the interim cash dividend of 8.0 cents per share distributed last August, we will be paying out a total cash dividend of 22 cents per share to shareholders for FY 2017 compared to 20 cents per share for the whole of 2016.

MULTIPLE INCOME STREAMSDuring the year, recurring income continued to be a stable contributor to the Group. Recurring income amounted to $319 million, down $20 mill ion from $339 million in 2016. This was mainly due to lower contributions from property investment and hospitality


Sustaining Growth 7


businesses, partly offset by higher contributions from our infrastructure and asset management businesses.

OFFSHORE & MARINEThere is growing optimism in the offshore and marine industry, fol lowing the recovery of oil prices on the back of ex tended supply cuts by OPEC and other oil producers. The increase in offshore rig transactions has also helped to improve the outlook. However, the rig market continues to be plagued by a supply overhang, and both utilisation and day rates remain low. Whilst Final Investment Decisions (F ID) have doubled in 2017 compared to 2016, a n d a re e x p e c t e d t o gather momentum as oil companies restart their oil exploration and exploitation programmes, it may be some time yet before they translate to orders for new drilling

units. However, we continue to see opportunities in the demand for production assets, LNG solutions and specialised vessels.

N o t w i t h s t a n d i n g t h e current chal lenges, we remain confident about the long-term potential of the offshore and marine business. Energy demand remains strong, driven by global economic growth. The increasing efficiency by operators has also lowered the cost of exploration and production (E&P), while continued rig attrition will contribute to the eventual restoration of supply and demand equilibrium for the rig market.

In FY 2017, Keppel O&M incurred a loss of $835 million compared to a net profit of $29 million a year ago. This was mainly due to the one-off impact of the financial penalty and related costs,

an additional $81 million provision for losses made on the Sete Brasil projects and $54 million in impairment on other assets.

Keppel O&M secured new contracts worth about $1.2 b i l l ion f rom new and repeat customers, including two LNG dual-fuel containerships from Pasha Hawai i , F loat ing Production Storage and Offloading (FPSO) jobs from SBM Offshore, Prosafe and Petrobras, as well as three dredgers from Jan De Nul.

As at 31 December 2017, Keppel O&M’s orderbook s tood at $3.9 b i l l ion , excluding the contracts from Sete Brasil, compared with $3.7 billion at the end of 2016.

Keppel O&M kept its focus on execution and 10 major projects were delivered in 2017. Earlier this month,

Keppel FELS also delivered the first jackup of 2018 to Borr Drilling.

M e a n w h i l e , w e h a v e reached an agreement with our customer Golar LNG to extend the notice to proceed for the Gandria and Gimi FLNG vessel conversions to mid- and end-2018 respectively. Golar LNG has announced that FID for Gandria is expected in 2018 and they have provided funds to kick start some early work in the conversion of Gandria.

In the year ahead, our yards will continue to focus on executing both new and existing contracts. About half of the orderbook to be delivered this year are non-drilling projects. We will continue to expand our offerings and capabilities, and explore new markets.

PROPERTY2017 marked another strong year for our Property Division, which has remained the largest contributor to the Group’s bottom line.

The Division recorded a net profit of $685 million for FY 2017, up 10% from $620 million a year ago.

We a re t r a n s f o r m i n g Keppel Land to be a multi-dimensional real estate player, with a strong focus on returns . For 2017, Keppel Land made a net

Keppel Singmarine delivered its 11th ice-class vessel, MPV Everest, to New Orient Marine Pte Ltd in December 2017

8 Sustaining Growth



profit of $701 million, 25% higher than the net profit of $559 million in 2016. ROE for Keppel Land was 8.2%, while its gearing was 0.25x as at end-2017. Over the past five years, Keppel Land achieved average ROE of 9.4%.

In 2017, Keppe l Land announced five divestments t o t a l l i n g m o r e t h a n $1.0 billion, including the sale of the Zhongshan residential cum marina development in China and the Tanah Lot site in West Bali, Indonesia in the fourth quarter. The divestment of the Zhongshan development i s c u r r e n t l y p e n d i n g a decision by the Court of Appeal on a petition s u b m i t t e d b y S u n s e a Yacht Club (Hong Kong) Company.

D u r i n g t h e y e a r, w e recognised total divestment gains of $212 million in 2017. Keppel Land also seized opportunities to replenish its property portfolio and invest strategically across the reg ion . We made investments amounting to about $1.6 billion, including the acquisition of residential sites in Wuxi, Ho Chi Minh City and Bangkok in the fourth quarter.

HOME SALESKeppel Land continued to achieve strong home sales in 2017, transacting more than 5,480 units at a total sales value of about $2.8 billion. Of these, some 3,725 homes were sold in China, 1,110 in Vietnam, 380 in Singapore and 270 in Indonesia. Due to tightening measures in China and the timing of our

divested three projects, equivalent to about 4,330 homes sold en bloc, which is significantly higher than the 630 homes divested en bloc in 2016.

PROPERTY PORTFOLIOIn line with our goal to make Keppel Land a real estate company with one of the highest returns in Asia, we will continue working our assets hard to unleash the full potential of our property portfolio.

We are fortunate to have entered some markets early, particularly in China and Vietnam, where we have secured land at low cost. Today, about 70% of Keppel Land’s total residential landbank has been with the company for over seven years.

In 2017, we replenished our pipeline with another 5,710 homes in our key markets, bringing Keppel Land’s total supply of homes to about 63,000 units. We currently have about 1,200 homes in our Singapore landbank. We are also studying the redevelopment of Keppel Towers and Nassim Woods, which can potentially add another 500 homes in prime locations to our Singapore portfolio.

On the commercial front, Keppel Land has about one and a half million square metres of gross floor area, either completed or under development. When fully

K-Plaza in Shanghai received positive response from buyers, with 71 out of 120 strata-titled units sold as of end-2017. It is slated to open to the public by 3Q 2018

launches in Vietnam, overall sales volume was marginally lower compared to the same period last year.

We expect to recognise profits from some 7,740 o v e r s e a s h o m e s t h a t had been sold for about $2.4 billion as they come into completion from 2018 through to 2020.

In the current environment where land prices in key markets are high, a landbank with an estimated 10-year supply places Keppel Land in an enviable position. We are under no pressure to accumulate land, and can even choose to monetise part of this sizeable landbank i n re s p o n s e t o g o o d opportunities.

In 2017, Keppe l Land


Sustaining Growth 9

stabilised, this portfolio can generate an annual net operating income of about $300 million.

INFRASTRUCTUREOur Infrastructure Division delivered a net profit of $132 million for FY 2017, up 33% year-on-year.

Keppe l I n f r a s t r u c tu re cont inued to per fo rm well, with a net profit of $109 million and ROE of 14.9%. KI’s net profit grew by 45% from 2016.

Earn ings f rom energy, e n v i r o n m e n t a n d inf ras t ructure serv ices increased to $100 million in 2017 compared to $66 million in 2016. The strong profit was achieved through better performance f r o m t h e e n e r g y infrastructure business as well as growing contribution from the operations and maintenance (O&M) of infrastructure assets.

Several key mi lestones marked the year for our Infrastructure Div is ion. Keppel Seghers and Zhen Hua secured a $5.3 billion contract to design, build and operate Hong Kong’s first Integrated Waste Management Facility. Our share of the total contract is approximately $1 .95 b i l l i on fo r the engineering, procurement, and construction (EPC), and O&M phases.

Construction of the KMEDP is progressing well with

over 30% completed. In Qatar, the final handover of the Doha North Sewage Treatment Works was carried out in the fourth quarter.

During the year, Keppel S e g h e r s s e c u re d t w o new contracts to provide technology solutions to Waste-to-Energy (WTE) plants in Beijing and Hunan, fur ther re inforc ing i t s position as a leading provider of WTE solutions in China.

Meanwhile, Keppel Data Centres has partnered with the Singapore Internet Exchange in support of Singapore’s Smart Nation push. In a Memorandum of Understanding signed between the two parties, Singapore Internet Exchange has set up its point of presence within Keppel DC Singapore 1 in Northeast Singapore.

Tapping on the growing demand for e-commerce, Keppel Logistics now offers more value to customers with a comprehensive suite of omnichannel logistics and channel management solutions through the newly launched UrbanFox.

Keppel Telecommunications & Transportation contributed $42 million to the Group’s net profit in 2017, 14% higher than its contribution of $37 million in 2016.

OPERATIONS & MAINTENANCE RECURRING INCOMEKeppe l In f ras t ruc ture ,

as a developer, owner and operator of quality infrastructure assets, has contributed steadily to the Group’s bottom line. Over the years, we have built up a comprehensive range of operating expertise in power, WTE, district cooling and heating as well as water and wastewater facilities.

In 2017, Keppel Infrastructure earned a total revenue of about $160 million from the O&M of infrastructure assets across Singapore and Qatar. When the Keppel Marina East Desalination Plant and Hong Kong’s Integrated Waste Management Facility are completed in 2020 and 2024 respectively, they wil l augment recurr ing income from operations and maintenance, extending visibility into 2039.

INVESTMENTSThe Investments Division turned in a net profit of $235 million for FY 2017, underscored by stronger contributions from Keppel Capital, and our investment in the Sino-Singapore Tianjin Eco-City.

The Tianjin Eco-City, which marks its 10th anniversary this year, is on track with its growth plans and will continue to be a long-term contributor to Keppel as it matures. For 2017, our investment in SSTEC, the master developer of the Tianjin Eco-City, contributed $120 million to the Group’s net profit, a significant

increase from the $34 million in 2016.

During the year, the REITs and Trust managed by Keppel Capital continued to deliver positive total returns to unitholders and made several strategic acquisitions that augmented their sustainable income streams. The latest addition to the stable of managed vehicles, Keppel-KBS US REIT, was successfully l isted on the Singapore Exchange, raising about US$553 million. Keppel REIT and Keppel DC REIT made three acquisitions totalling about $670 million.

M e a n w h i l e , A l p h a Investment Partners (Alpha) registered strong fundraising efforts through its private funds. The Alpha DC Fund closed at US$1 bi l l ion, double the initial target size, while the Alpha Asia Macro Trends Fund III raised over US$560 million. Collectively, the private funds under Alpha invested into over US$910 million worth of real estate and data centre assets during the year, and also captured value through the divestment of 11 assets worth over US$880 million.

ASSET MANAGEMENTWith an integrated asset management platform, Keppel Capital is delivering stronger performance.

Total asset management fees of $134 million earned


10 Sustaining Growth


in 2017 were higher than $128 mi l l ion the year before. The REITs and Trust contributed to about 60% of total asset management fees for the current period, while about 40% came from private funds.

Keppel Capital recorded a net profit of $83 million for 2017, helped by performance fees and mark-to-market gains from securities held for sale. This was 30% higher than the $64 million net profit contributed by Keppel Capital in the previous year.

Keppel Capital has been act ive ly pursuing both organic and inorganic growth opportunities to increase recurring asset management income for the Group.

On a fully leveraged and invested bas is , Keppel Cap i ta l ’s assets under management (AUM) grew to $29 billion as at end-2017, from $25 billion in the preceding year. We will continue to grow our AUM to the target of $50 billion by 2022, boosting the Group’s funding capabilities and expanding our funding base.

HARNESSING STRENGTHSLast October, we announced the creation of Keppel Urban Solutions (KUS) as a strategic move to harness the Keppel Group’s s t rengths and diverse solutions to pursue sustainable and smart urban development opportunities in the region. Since then,

we have incorporated the company and appointed its management team, led by Ms Cindy Lim as Managing Director.

The development plans for KUS’ pilot project, the Saigon Sports City, located in Distr ict 2 of Ho Chi Minh City, are progressing on schedule. A team of international consultants has been assembled to work on the design and development plans for the sports-orientated integrated hub, which offers a variety of lifestyle and recreational activities.

The 64-hectare development will comprise a total of 4,300 premium homes designed with emphasis on sustainability, connectivity, community and technology. The first phase will feature some 90,000 square metres in gross f loor area of commercial space and about

1,220 homes, of which 620 units are slated for launch in the second half of this year.

Apart from Saigon Sports City, KUS is also actively evaluating and pursuing other sustainable, smart u r b a n d e v e l o p m e n t prospects in the region.

SHAPING THE FUTUREThe global economy is exper ienc ing a broad-based upturn, and we are excited about the many opportunities presented by strong urbanisation trends across the businesses that we are in – whether it is the demand for offshore production assets or LNG solutions to meet growing energy needs, attractive urban environments and reliable infrastructure to support sustainable communities, or efficient data centres and logistics solutions to buttress the digital economy and growing e-commerce.

Demand for homes and offices in our key markets remains robust, underpinned by strong growth prospects.

Today, Keppel is not just a group of diverse companies who share a common name, but an eco-system of companies working closely together with a common purpose, as OneKeppel, to provide compelling solutions for sustainable urbanisation.

We recently updated our Mission to depict our shared goal – “Guided by our operating principles and core values, we will deliver solutions for sustainable urbanisation profitably, safely and responsibly.”

The ref reshed Miss ion reflects more closely the Group’s current focus, and better prepares and positions us to compete internationally as we stride confidently into the future. keppelite


Keppel Urban Solutions harnesses the Group’s strengths and diverse solutions to pursue sustainable and smart urban development opportunities in the region, such as the Saigon Sports City in District 2 of Ho Chi Minh City


Sustaining Growth 11


KEPPEL CORPORATION’S 4Q 2017 FINANCIAL PERFORMANCE

Year in reviewMr Chan Hon Chew, CFO of Keppel Corporation, presented the Company’s 4Q & FY 2017 financial performance at the media and analyst conference. Keppelite reproduces his speech.

The Group recorded a net loss of $495 million in 4Q 2017, compared to a net profit of $143 million in 4Q 2016. This is $638 million worse than last year.

The results for 4Q and FY 2017 included the one-off financial penalty arising from Keppel Offshore & Marine’s (Keppel O&M) g lobal reso lut ion with criminal authorities in the US, Brazil and Singapore, and related legal, accounting and forensics costs amounting to $619 million.

As a result, earnings per share (EPS) was at negative 27.3 cents, while Economic Value Added (EVA) was at negative $895 million.

Given the size of the impact of global resolution and its one-off nature, the subsequent analysis of the 4 Q 2 0 1 7 r e s u l t s i s normalised to exclude the global resolution penalty and related costs. This is done to allow a more meaningful analysis of the underlying performance of the Group.

4Q 2017 FINANCIAL HIGHLIGHTSThe Group’s 4Q 2017 net profit at $124 million, was

$19 million or 13% lower year on year. EPS was 6.8 cents, while EVA was at negative $276 million.

The Group’s revenue for 4Q 2017 was 20% or $395 million lower than 4Q 2016. All divisions except the Infrastructure Division registered lower revenues during the quarter.

Operating profit increased 29% or $28 mil l ion to $126 million. Higher profits f rom the Investments , Property and Infrastructure divisions were partially offset by higher operating loss at the O&M Division.

However, prof it before tax inc reased by 1%, a lower margin than the improvement in operating profit, due mainly to lower

sha re o f p ro f i t s f rom assoc iated companies . The share of profits from associated companies in 4Q 2016 benefited from higher contribution from the Sino-Singapore Tianjin Eco-City (SSTEC).

Despite a higher pre-tax profit, net profit after tax and non-controlling interests at $124 million was 13% or $19 million lower, due mainly to higher effective tax rate this year, as a result of higher proportion of profits from operations in countries with higher tax rate and losses from companies in Keppel O&M.

4Q 2017 SEGMENTAL REVIEWIn 4Q 2017, the Group earned total revenues of $1.5 billion, 20% lower than

in the same period in 2016. This was driven largely by the 39% decrease in O&M’s revenue as a result of lower volume of work.

Revenues from the Property Division decreased by 26%, primari ly due to lower revenues from China trading projects and The Glades in Singapore, which were partly offset by higher revenues from the Reflections at Keppel Bay.

Infrastructure Division’s revenue grew 15%, driven by increased sales in the power and gas business and progressive revenue recognition from the Keppel Marina East Desalination Plant (KMEDP) project.

Excluding global resolution & related costs

$m 4Q 2017 4Q 2016 % Change 4Q 2017 4Q 2016 % Change

Revenue 1,545 1,940 (20) 1,545 1,940 (20)

Operating Profit 126 98 29 126 98 29

Net Profit (495) 143 n.m. 124 143 (13)

EPS (cents) (27.3) 7.9 n.m. 6.8 7.9 (14)




Meanwhile, the Investments D i v i s i on saw a s l i gh t decrease in revenue, due mainly to timing difference in certain performance fees earned by Keppel Capital, which were recognised in 3Q this year compared to 4Q last year.

Exc lud ing the one-off financial penalty and related costs, the Group recorded a pre-tax profit of $208 million in 4Q 2017, comparable to the $206 million recorded in 4Q 2016.

The O&M Division’s pre-tax loss was $253 million as compared to $142 million loss in the same quarter last year. This was due mainly to lower operating results and share of associated companies’ losses, partially offset by lower impairment provisions and lower net interest expense.

Pre-tax profit for the Property Division increased by 24% to $366 million, lifted mainly by higher fair value gains on investment properties, which were partially offset by the absence of write-back of impairment for hospitality assets compared to write-backs in respect of Sedona Yangon and Mandalay last year.

Inf ras t ructure D iv i s ion reported a 75% increase in pre-tax profit, due mainly to higher profit from the power and gas business and recognition of fair value

gains on investment during the quarter.

Pre-tax profit from the Investments Division was $22 million higher as a result of the absence of provision for impairment on investments in 2017, partly offset by lower contribution from SSTEC.

After tax and non-controlling interests, the Group’s net prof i t for the quar ter decreased by 13% or $19 million to $124 million.

FY 2017 FINANCIAL HIGHLIGHTSThe Group recorded a net profit of $217 million for FY 2017, 72% lower as compared to FY 2016.

As noted earlier, the results for 2017 were affected by the impact of the global resolution with criminal authorities in the US, Brazil and Singapore.

The resultant EPS decreased by the same extent to 11.9 cents. This translates to a lower Return on Equity

(ROE) of 1.9%, and EVA was also lower at negative $834 million.

S im i l a r to the fou r th quarter, the subsequent analysis for FY 2017 is normalised to exclude the one-off financial penalty from the global resolution and related costs to allow a more meaningful analysis of the underlying performance of the Group.

On this basis, the Group net profit was 7% higher at $836 million as compared to 2016. As a result, EPS increased by about the same extent to 46.0 cents. This translates to a higher ROE of 7.0%, while EVA was lower at negative $215 million.

Free cash flow for the year was an inflow of $1.8 billion, compared to an inflow of $540 million in the prior year, due mainly to lower working capital requirements from the O&M and Property divisions. Consequently, net gearing decreased from 56% as at end-2016 to 46% this year.

We are pleased to propose a final dividend of 14 cents per share for FY 2017. Together with the interim cash dividend of 8 cents, total cash dividend for 2017 will amount to 22 cents per share.

During the year, the Group earned a total revenue of $6.0 billion, a decrease of 12% or $803 million from 2016. Lower revenues from the O&M and Property divis ions were part ial ly offset by higher revenues from the Infrastructure and Investments divisions.

FY 2017 operating profit of $776 million was 2% or $19 million lower than last year. All divisions reported higher operating profits, except for the O&M Division, which turned in a full year operating loss.

Despite lower operating profits, profit before tax was 8% or $80 million higher than FY 2016, due mainly to lower interest expense and higher share of profits from associated companies.

Excluding global resolution & related costs

$m FY 2017 FY 2016 % Change FY 2017 FY 2016 % Change

Revenue 5,964 6,767 (12) 5,964 6,767 (12)

Operating Profit 776 795 (2) 776 795 (2)

Net Profit 217 784 (72) 836 784 7

EPS (cents) 11.9 43.2 (72) 46.0 43.2 6

KEPPEL CORPORATION’S FY 2017 FINANCIAL PERFORMANCE



The higher profits from associated companies was contributed largely by SSTEC from the sale of three land parcels in 2017.

After tax and non-controlling interests, net profit was 7% higher at $836 million, translating to an EPS of 46.0 cents.

FY 2017 SEGMENTAL REVIEWOverall, the Group’s revenues of $6.0 billion were 12% lower as compared to 2016. This was driven largely by the 37% decrease in O&M revenues as a result of lower volume of work and deferment of some projects.

Property revenues dropped by 12%, due mainly to lower revenues from China trading projects and The Glades in Singapore.

The Infrastructure Division saw a 27% growth in revenue, led by increased sales in the power and gas business and progressive r e v e n u e r e c o g n i t i o n from the KMEDP project. Meanwhile, revenue from the Investments Division was 29% higher, resulting from sales of equity investments, as well as performance and acquisition fees earned by Keppel Capital.

The Group recorded a pre-tax profit of $1.1 billion for FY 2017, which was 8% higher than FY 2016.

The O&M Division’s pre-tax loss for FY 2017 was $243 million, compared to a pre-tax profit of $90 million for FY 2016. As revenues continued to fall by another 37% this year, the O&M Division incurred a full year operating loss in 2017. Moreover, share of associated companies’ profits was also lower. These were partially offset b y l o w e r i m p a i r m e n t provisions and lower net interest expense. Provisions, mainly for impairment of fixed assets, stocks & work-in-progress, investments and an associated company, and restructuring costs, amounted to $135 million in FY 2017. This is lower than the $277 million impairment prov is ions recorded in FY 2016. The Division’s operating margin for the year, was a negative 3.3%, compared to a posit ive 14.4% in FY 2016.

Pre-tax profit from the Property Division rose 14%, driven mainly by higher fair value gains on investment properties and gains from en-bloc sales of development pro jects in China and Indonesia. This was partially offset by lower contribution from associated companies, primarily resulting from the absence of the gains from the divestment of stakes in Life Hub @ Jinqiao in China and 77 King Street in Australia, as well as the absence of write-back of

impairment for hospitality assets in FY 2016.

The Infrastructure Division saw an increase of 36% in pre-tax profit, due to higher operating results, progressive recognition of KMEDP project, fair value gains on investment and gains from the divestment of GE Keppel Energy Services.

The Investments Division’s p r e - t a x p r o f i t w a s $260 million higher, led mainly by higher share of profit of associated c o m p a n i e s i n c l u d i n g SSTEC and k1 Ventures, write-back of provisions for impairment of investments and profit on the sale of equity investments. These were partially offset by fair value loss on KrisEnergy warrants and share of loss in KrisEnergy.

After tax and non-controlling in te res t s , the Group’s earnings increased by 7% or $52 million, with the Property Division being the top contributor at 82%, followed by Investments at 28% and Infrastructure at 16%, while the O&M Division contributed negative 26% to the Group’s net profit.

The Group’s net profit for FY 2017 was $836 million, translating to an EPS of 46.0 cents.

FY 2017 ROE for the Group

increased to 7.0% from 6.9% in FY 2016.

FREE CASH FLOWI n 2 0 1 7 , c a s h f l o w f ro m o p e r a t i o n s w a s $463 million as compared to $1,202 million in 2016.

After accounting for working capital changes, interest and tax, net cash inflow from operating activities was $1,377 million, as compared to $294 million in 2016, due mainly to lower working capital requirements in the O&M and Property Divisions.

Net cash generated from investing activities amounted to $425 million, comprising d iv idend income f rom associated companies and divestment proceeds of $ 6 5 5 m i l l i o n , l e s s investments, operational capital expenditure and advances to associated companies of $230 million.

As a result, there was an overall cash inflow of $1.8 billion for 2017, $1.3 billion higher than in 2016. keppelite



An exchange with stakeholdersKeppelite shares highlights of management’s responses to key questions from the media and investment community at the Company’s 4Q & FY 2017 results conference.

Q: There has been an increase in new orders year on year. What is your outlook for Keppel Offshore & Marine (Keppel O&M) and where do you see the revenues coming from?CO: Keppel O&M has been on a diversification drive. 50% of the projects to be delivered in 2018 are non-drilling solutions. Our diversification strategy is bearing fruit and we will continue to work on our gas strategy and Liquefied Natural Gas products. We are hopeful that 2018 will be a more fruitful year than

2017, if all of our targets are met.

Q: What had changed in the last 12 months which resulted in the additional provisions for losses of $81 million made for the Sete Brasil projects? LCH: We made a $230 million provision for Sete Brasil’s semis at end-2015, and we have been reviewing the assumptions every quarter. Following our discussion with Sete Brasil’s consultant in 4Q 2017, we came to a conclusion on what the likely scenario would be. That had shifted the way we looked at the outcomes,

and as such, there was a necessity for us to take a further provision. We believe that this provision is enough for now but we will have to continue monitoring the situation.

Q: Why was there a loss at Keppel O&M in 4Q 2017 even after excluding the one-off penalty and related costs? CHC: The loss at Keppel O&M in 4Q 2017, excluding the one-off penalty and related costs, was mainly due to lower operating results and share of associated companies’ losses.

Q: When will you make the payment for the US$422 million penalty? Do you expect more penalties to come or is this it? LCH: We have paid about 25% in January, and we expect to pay another 12.5% in March and 50% in May. The remaining 12.5% will likely be paid at the end of the third year. This is a global settlement with the criminal authorities in the US, Brazil and Singapore, so this should be final as far as these investigations are concerned.

Q: Have any of your existing customers stopped working with Keppel as a result of the bribery situation? What are you doing to maintain working relationships with customers following the global resolution?LCH: Our customers have not stopped working with us. We have been engaging our customers and some of them have asked certain questions to get a better understanding of our enhanced compliance framework.

We encourage a l l our Keppelites to take legitimate

Keppel is an eco-system of companies working closely together with a common purpose of providing compelling solutions for sustainable urbanisation



business risks for which we get a suitable return for taking those risks. But there are some bright lines that we should not cross, and it is very clear to the team here and to the Board.

Of course, we will have to continue to work very hard to demonstrate that we have a very strict compliance regime, and that we will only engage in ethical and legal activities.

Q: Keppel Land’s Return on Equity (ROE) was 8% in 2017 and averaged 9% over the last five years. Looking ahead, how confident are you of achieving your targeted 12% through-cycle ROE? LCH: That is still something we are targeting and we believe that it is possible through the cycle. We will be looking to see how we can turn our assets a bit faster and if appropriate, we might also look at the gearing at Keppel Land. At about 25%, Keppel Land’s net gearing in 2017 was not very high. We believe that with some tweaks, we should be able to hit that 12% through-cycle ROE.

Q: What is Keppel’s strategy to adapt to a shift in China’s property landscape and capitalise on the improving property market?LCH: China is one of our key markets and we will continue to look for opportunities

to turn our landbank there faster. We have taken the opportunity in 2017 to sell some of our projects en-bloc, when the opportunity there is better than for us to hold. You’ve also seen us replenish our landbank in our key cities. We can also buy an existing building and add value through asset management, as we have done successfully with the Jinqiao shopping mall a couple of years ago. This is part of our multi-dimensional approach to property.

Q: Can you provide some colour on the 2018 property outlook for Vietnam?LCH: Vietnam still remains very constructive and we are seeing good demand. Vietnam sales for 2017 were slightly lower compared to 2016. This was due to the timing of the launches, rather than a reflection of the market demand there.

Q: We’ve seen growth at Keppel Infrastructure (KI) in 2017. What else can we expect from KI moving forward? LCH: In 2017, KI not only delivered significantly higher net profit as compared to 2016, they have also been very active in securing projects, namely the Keppel Marina East Desalination Plant, and the Hong Kong Integrated Waste Management Facility. We expect these projects to contribute to KI over time. In early-2017, we also

announced the gasification project, which is a bit longer-term as it takes more time to get to the Final Investment Decision.

Q: What is UrbanFox’s strategy to gain market share in Singapore?TP: UrbanFox provides end-to-end e-commerce solut ions. The serv ices range from omnichannel m a n a g e m e n t f o r e-commerce to warehousing and inventory control and last-mile fulfilment services. So it is differentiated from a lot of the logistics companies out there. In working closely with its parent company Keppel Logistics, UrbanFox is able to access potential customers, who are existing clients of Keppel and with whom we have strong relationships. keppelite

LCH – Mr Loh Chin Hua,

CEO of Keppel Corporation

CHC – Mr Chan Hon Chew,

CFO of Keppel Corporation

CO – Mr Chris Ong, CEO of

Keppel Offshore & Marine

TP – Mr Thomas Pang,

CEO of Keppel

Telecommunications &

Transportation



Stable distributionsKeppel Infrastructure Trust (KIT) reported its fourth quarter and full year financial results on 22 January 2018. The Trust announced a Distribution per Unit (DPU) of 0.93 cents for the fourth quarter, similar to what it paid out a year ago, bringing total DPU for FY 2017 to 3.72 cents. This represents a distribution yield of 6.5% based on the total DPU divided by the closing unit price ($0.575) as at the last trading day for FY 2017.

Group revenue for FY 2017 was $632.5 million, 8.8% higher than FY 2016. This was mainly due to higher contributions from City Gas as a result of higher town

gas tariff and volume, higher revenue from Basslink as no facility fees were recognised during the cable outage which occurred between 20 December 2015 and 2 June 2016, and higher re venue f rom Keppe l Merlimau Cogen (KMC).

Distributable cash flows of $144.2 mil l ion were $5.3 million lower than FY 2016, due mainly to abortive expenses incurred by the Trust in connection with a potential acquisition, termination of CityNet, and one-off maintenance costs at its Ulu Pandan NEWater plant, partially offset by higher contributions from KMC and DataCentre One.

Gearing as at 31 December 2017 was 39.9% compared to 37.4% as at 31 December

Sustainable returnsKeppel REIT has delivered sustainable distributable income (DI) of $48.2 million for 4Q 2017, br inging FY 2017 DI to $190.7 million. DI was lower year-on-year mainly due to the absence of income from 77 King Street in Sydney which was divested in January 2016, lower one-off income received, lower rental support and the absence of other gains distribution. Distribution per Unit (DPU) of 1.43 cents

was declared for 4Q 2017, br inging total DPU for FY 2017 to 5.70 cents.

As at end 2017, Keppel REIT has received commitments from the banks to refinance the loans due in 2019. Subsequently, the REIT will have no refinancing requirements until 2019 and weighted average term to maturity of borrowings improves to 3.4 years. A g g r e g a t e l e v e r a g e

remained stable at 38.7%, while all-in interest rate was 2.62% per annum with interest coverage ratio at 4.3x.

The Manager’s proactive leasing efforts have helped Keppel REIT maintain a high portfolio committed occupancy of 99.7% and portfolio tenant retention rate of 95% as at end 2017. Commit ted occupancy of the REIT’s Singapore

and Austral ia portfol io were 99.6% and 99.8% respect ive ly. Weighted average lease expiry for Keppel REIT’s top 10 tenants and overall portfolio were approximately 7.8 years and 5.5 years respectively as at 31 December 2017.

Looking ahead, the Manager remains focused on providing stable and susta inable distributable income to Unitholders. keppelite

Contributing to operations and maintenance costs was the replacement of the Reverse Osmosis water membranes at the Ulu Pandan NEWater Plant

2016 as the Trust drew on its loan facility to repay one of its subsidiaries. keppelite



Steady growthKeppel DC REIT posted distributable income of $82.3 million for FY 2017, 34.8% higher than the distributable income of $61.0 million in FY 2016. The growth in distributable i n c o m e w a s m a i n l y contributed by the REIT’s accretive acquisitions, higher variable income from Keppel DC Singapore 1, as well as a one-off capital distribution of $1.7 million recorded in 1Q 2017 in relation to the Keppel DC Singapore 3 acquisition.

A DPU of 3.49 cents was declared for 2H 2017, bringing FY 2017 DPU to 7.12 cents. Excluding the one-off capital distribution,

the adjusted DPU for FY 2017 would be 6.97 cents. This represents a 4.3% growth from FY 2016 adjusted DPU of 6.68 cents after adjusting for the impact of the pro-rata Preferential Offering and the one-off net property tax refund recorded in FY 2016.

Keppel DC REIT’s portfolio occupancy was a healthy 92.6% as at 31 December 2017, with portfolio WALE remaining long at 9.1 years. The Manager rema ins committed to acquiring quality income-producing assets that complement and strengthen the REIT’s portfolio. Two acquisitions were completed in FY 2017

– Keppel DC Singapore 3 and Keppel DC Dublin 2, formerly known as B10 Data Centre.

Apart from seeking inorganic growth, the Manager will continue to review the REIT’s portfolio periodically

to identify opportunities for portfolio optimisation. The Manager has rolled out asset enhancement initiatives at Keppel DC Dublin 1 as part of its proactive asset management efforts to enhance portfolio returns. keppelite

Sharpening core capabilitiesKeppel Telecommunications & Transportation (Keppel T&T) reported a net profit of $17.1 million for 4Q 2017, up from $3.1 million for 4Q 2016. The increase was due mainly to fair value gains from reclassification of an associated company to other investments and the disposal of an associated company. These were partly offset by lower contributions from the Logistics Division and Keppel DC Singapore 3, of which a 90% stake was divested to Keppel DC REIT in January 2017.

On a full year basis, the net profit of $51.8 million was lower compared to the $105.1 million reported f o r F Y 2 0 1 6 , l a r g e l y due to one-off gains of $56.7 million in the prior year pertaining mainly to the partial disposal of Keppel DC REIT Management.

Mr Thomas Pang, CEO of Keppel T&T, said, “Keppel T&T is evolving to better meet the fast changing needs of our customers in the logistics and data centre industries. As we sharpen our

core capabilities, we are also adapting our business model and optimising operations to meet the challenges and ride the digitalisation wave.

“Our collaboration with the US$1 billion Alpha Data Centre Fund for instance, wil l enable us to seize more opportunities in the development, operations and maintenance, and management of data centre assets. This will help to grow our bottom line and sources of recurring income over the long term.”

Earnings per share for 4Q 2017 and FY 2017 were 3.1 cents and 9.3 cents respectively, compared to 0.6 cents and 18.9 cents for 4Q 2016 and FY 2016. Keppel T&T’s net asset value per ordinary share increased to S$1.50 per share as at 3 1 D e c e m b e r 2 0 1 7 , compared to S$1.43 per share as at 31 December 2016. keppelite

Keppel DC completed two acquisitions in FY 2017, including Keppel DC Dublin 2 (pictured)



Successful listing of Keppel-KBS US REITK e p p e l - K B S U S R E I T succes s fu l l y l i s t ed on the Main Board of the Singapore Exchange (SGX) on 9 November 2017, r a i s i n g a t o t a l o f US$553.1 million.

Upon commencement of trading, the REIT opened at US$0.895 per Unit and c losed at US$0.89 per Unit, above its Initial Public Offering (IPO) offering price of US$0.88 per Unit.

Mr David Snyder, CEO and Chief Investment Officer (CIO) of the REIT Manager, Keppel-KBS US REIT Management, said, “We would like to thank Unitholders for their

strong vote of confidence in Keppel-KBS US REIT. Our strong debut reflects the market’s appreciation of our value proposition to investors, offering access to the attractive office real estate sector in key US growth markets through our distinctive portfolio of quality assets.”

Keppel-KBS US REIT received positive response for its IPO. The internat iona l p lacement of Uni ts to investors outside of the US drew positive demand from institutional investors and was oversubscribed, while the offering of Units to the public in Singapore was

approximately 6.7 times subscribed.

Keppel-KBS US REIT i s backed by two reputable Sponsors - Keppel Capital and KBS Pacific Advisors (KPA) . Incorporated in Singapore, KPA is owned by shareholders who also hold stakes in KBS Capital Advisors (KBS), one of the premier commercial real estate investment managers in the US that has completed more than US$33 billion of transaction volume since its inception in 1992. As KPA is a co-sponsor of Keppel-KBS US REIT, the Manager is able to leverage KPA’s affiliation with KBS. Through

the association with the Sponsors, the Manager is able to harness synergies and draw competencies f rom two best- in-c lass management platforms.

Mr Snyder added, “With the combined strength of two reputable Sponsors, we are uniquely positioned to pursue both organic a n d e x t e r n a l g ro w t h opportunities as we strive t o p rov i de l ong - t e rm sustainable distributions and strong total returns for our Unitholders.”

Mr Peter McMi l lan I I I , Chairman of the Manager, said, “Harnessing synergies

The REIT has a distinctive portfolio of 11 quality investment assets strategically located in seven key US growth markets underpinned by stable macro fundamentals



from two best-in-class REIT management platforms, we are delighted to jointly bring Keppel-KBS US REIT to the investment community. The high quality, income-producing office assets in the REIT’s portfolio enjoy healthy occupancy and strong organic growth po ten t i a l , wh i ch i s a result of our active asset management and innovative leasing initiatives. Keppel-KBS US REIT will be able to leverage KBS’ expertise and deal sourcing capabilities in the US commercial real estate sector to enhance value for investors.”

Ms Christina Tan, CEO of Keppel Capital, said, “The listing of Keppel-KBS US REIT is part of Keppel’s aim to grow our fund management business and expand our geographic footprint into the s tab le US market , capitalising on the growing demand by global investors for attractive US real estate investments. The REIT will be able to draw on Keppel Capital’s expertise in the management of listed REITs and strong relationships with Asian investors, as well as KBS’ established i n ve s tment and a s se t management experience in US commercial real estate.”

DISTINCTIVE AND RESILIENT PORTFOLIOThe REIT has a distinctive portfol io of 11 qual i ty i n v e s t m e n t a s s e t s strategically located in seven key US growth markets that

At the helm

Mr David Snyder, 46, has been appointed as the CEO and CIO of Keppel-KBS US REIT Management. Prior to his employment with the Manager, Mr Snyder was a consultant to KBS where he oversaw overall management of the AFRT portfolio and assisted in formulating its operational strategy. From 2008 to 2015, Mr Snyder was the CFO at KBS where he managed and advised five non-traded REITs as well as all aspects of investor relations, finance, financial reporting, accounting and financial planning including the negotiation and management of a portfolio transfer of over 800 properties valued at over US$1 billion.

A t t h e s a m e t i m e , Mr Andy Gwee, 41, has been appointed as CFO of the Manager. He brings with him more than 16 years of experience in the accounting, finance and auditing industry. Prior to his appointment w i t h t h e M a n a g e r, Mr Gwee was the Head of Finance of Keppel DC REIT Management. From 2012 to 2015, Mr Gwee was a Senior Finance M a n a g e r a t K e p p e l Corporat ion. He had also spent 12 years in an audit funct ion at PricewaterhouseCoopers LLP Singapore where he served as an engagement manager.

are underpinned by stable macro fundamentals. This is underscored by strong and sustainable economic growth in these markets that is expected to continue to outpace the national average.

With a combined aggregate n e t l e t t a b l e a r e a o f approximately 3.2 million square feet, these properties are located in key growth markets in the West Coast, Central Region and East Coast.

The RE I T ha s a we l l -diversified tenant base, led by those in the growth and defensive sectors such as technology, financial and insurance, profess ional services, as well as medical and healthcare.

VISIBLE GROWTH OPPORTUNITIESBased on the offer ing price of US$0.88 per Unit, Keppel-KBS US REIT offers an attractive distribution yield of 6.8% in forecast year 2018 and an expected distribution yield growth of 5.8% in pro ject ion year 2019, translating to a total return of 12.6%. This is driven by built-in rental escalations, positive rental reversion, as well as potent ia l growth in portfolio occupancy through a proactive leasing strategy.

At the same time, leveraging Keppel Capital’s established deal origination and analysis capabilities, and through

Mr David Snyder Mr Andy Gwee

KPA’s affiliates in the US, Keppel-KBS US REIT will benef i t f rom potent ia l

acquisition opportunities in the US office market. keppelite



The IWMF is the first of its kind to treat Hong Kong’s municipal solid waste. As a key part of Hong Kong’s waste management strategy, it is able to reduce the total volume of waste treated at the facility by more than 90%, thus extending the lifespan of landfills. Currently, Hong Kong landfills its non-recycled waste.

The IWMF comprises a WTE Plant, a mechanical t r e a t m e n t p l a n t a n d ancillary facilities, which include an administration building, visitor centre, port handling facilities, as well as desalination and was tewate r t rea tment plants.

Contracted to treat about 3,000 tonnes per day of mixed municipal solid waste, the WTE Plant will feature Keppel Seghers’ proven WTE technology with its air-cooled grate, boiler design, and advanced combustion control system. In addition, the WTE Plant will also use Keppel Seghers’ flue gas cleaning system, ensuring that the plant’s emissions wi l l comply with Hong Kong and EU standards, which are amongst the most stringent international standards available.

Capab le of produc ing approximately 480 million kilowatt-hours of gross electricity per year, the

surplus electricity beyond plant consumption wil l be exported into the grid. The exported green energy will power up to 100,000 households and help avoid the emission of 0.44 million tonnes of carbon dioxide per year.

The IWMF will also feature a 200 tonnes per day mechanical treatment plant for the sorting and recycling of glass, plastics and metals. The separated materials will be transported back to Hong Kong for further p r o c e s s i n g i n t o e n d products.

The onsite desalination plant will supply process

water for the IWMF and the wastewater treatment plant will ensure that all effluents are treated and reused as process water in either the WTE or mechanical treatment plant or for general washing and landscape irrigation within the IWMF.

The IWMF will have extensive greening that will integrate it seamlessly with its natural surroundings. As part of Hong Kong Government’s holistic approach, the IWMF will also feature a visitor gallery for environmental education, to raise awareness and drive towards a greener Hong Kong. keppelite

A landmark project for HK’s waste management

The facility, built on a reclaimed island off the coast of Shek Kwu Chau, will be the first of its kind to treat Hong Kong’s municipal solid waste




Acquisition of two prime sites in HCMCKeppel Land announced on 18 December 2017 that it has entered into two conditional sales and purchase agreements to acquire 100% interest in two pr ime s i tes in Ho Chi Minh City (HCMC), V i e t n a m . T h e t o t a l development cost of the two s i tes amounts to U S $ 2 9 7 m i l l i o n (approximately $407 million).

For the first site located in Saigon South of HCMC,

Keppel Land plans to develop about 220 landed homes and a 1,029-unit high-rise condominium spanning a gross floor area (GFA) of about 36,110 square metres (sm) and 141,540 sm respectively. The 13-hectare (ha) site is situated among h igh l y popu la ted and established upper mid-end residential areas which enjoy easy accessibility to HCMC’s central business district (CBD). The total d e v e l o p m e n t c o s t ,

inclusive of the land cost, is about US$235 million (approximately $322 million).

The second site is located in District 9 and borders the affluent residential enclave of District 2. Keppel Land will develop another 300 landed homes spanning a GFA of about 55,000 sm. The total development cost for the 6-ha site, inclusive of the land cost, is about US$62 million (approximately $85 million).

As the macroeconomic condi t ions in V ietnam strengthen, the real estate market continues to perform well. A total of 23,200 condominium units were sold in HCMC in the first nine months of 2017, about 2% higher year-on-year. Landed homes also recorded a high take-up rate with approximately 2,300 landed houses sold in the first nine months of 2017, almost equivalent to the total units sold in 2016. keppelite

Riding on positive market sentiments, Keppel Land entered into two conditional sales and purchase agreements in December 2017 to acquire two prime sites in Ho Chi Minh City, where it is also developing Empire City (pictured), in the Thu Thiem New Urban Area



Preferred partnerKeppel Offshore & Marine (Keppel O&M) announced on 11 December 2017 that i t s whol ly -owned subsidiaries, Keppel FELS Brasil and Keppel Shipyard, secured pro jects f rom repeat customers, Petrobras and SOFEC Inc. (SOFEC) respectively. The projects are worth a combined value of approximately $130 million.

Mr Chris Ong, CEO of Keppel O&M, said, “We are pleased that our repeat customers cont inue to choose us as the preferred partner for their Floating Production Storage and Offloading (FPSO) projects. It is a testament to our proven

track record and expertise in a comprehensive range of services and proprietary technology for production assets. We are committed to delivering innovative, reliable and value-added solutions for the industry.”

Keppel FELS Brasil’s BrasFELS shipyard has secured hull carry over work for the FPSO unit P-69 from Tupi BV (a consortium formed by Petrobras Netherlands B.V., operator with 65%; Shell with 25%; and Petrogal Brasil with 10%), which is represented by Petrobras.

The additional work scope on P-69 includes the installation

of equipment and cables for the hull as well as the commissioning of marine systems.

B rasFELS was in i t i a l l y contracted to undertake the fabrication, integration, testing and commissioning of the topside modules for P-69. The yard has since completed module fabricat ion for P-69, and i s current ly undertaking integration and commissioning of the topside modules.

P-69 is scheduled to depart BrasFELS in 2018 for the Santos Basin pre-salt region.When delivered, it will have a production capacity of

150,000 barrels of oil per day and 6 million cubic metres of gas per day. It will also have a storage capacity of 1.6 million barrels of oil.

Keppel Shipyard’s contract from SOFEC is for the fabr icat ion of a Turret Moor ing sys tem for a newbuild Floating Liquefied Natural Gas (FLNG) vessel bound for the Coral South FLNG Project in offshore Mozambique. Fabrication is scheduled to commence in 1Q 2018 with delivery of the turret components expected in 1Q 2020. keppelite

Keppel O&M’s proven track record has helped to position the company as the preferred partner for FPSO and FLNG projects



Keppel Logistics launches UrbanFoxKeppel Logistics, a wholly-owned subsidiary of Keppel Te lecommunicat ions & Transportation (Keppel T&T), has launched UrbanFox, an omnichannel logistics and channel management solutions brand with end-to-end capabilities from e - c o m m e r c e c h a n n e l management, warehousing and inventory management to last-mile fulfilment.

The launch of UrbanFox comes on the back of Keppel Logistics’ strategic acquisition of a majority stake in Courex in 2016. Courex was then a B2C (business to consumer) last-mile fulfilment start-up that used a crowdsourcing model for deliveries and a cloud-based platform for logistics management.

UrbanFox is helmed by MD, Mr Joe Choa, the founder of Courex. The newly unveiled UrbanFox has brought together the best of Courex’s digital competencies with Keppel Logistics’ established networks and trademark rel iabi l i ty to accelerate customers’ growth in the digital economy.

The growing popularity of e-commerce coupled with changing consumer expectations towards retail experiences have brought fresh challenges to the traditional brick-and-mortar retail industry as well as

logistics services providers that are faced with large last-mile delivery volumes.

U t i l i s i n g U r b a n F o x ’s solutions, brands will be able to establish and grow their online retail presence by listing their products on leading online marketplaces and platforms. They may also choose to launch their own online webstore with UrbanFox while maintaining a centralised platform to manage content, inventory and transactions across all channels.

Tapping on Keppel Logistics’ core strengths in third-party logistics solutions, brands will also be able to choose from a range of storage options for goods, including temperature-control led warehouses. Finally, UrbanFox uses smart algorithms to power last-mile deliveries and optimise

delivery routes by time and area, making the delivery experience a breeze for brands, customers, and delivery drivers alike. The delivery fleet comprises a hybrid of a fixed-fleet and crowdsourced drivers, allowing UrbanFox to be nimble enough to outfox seasonal peaks in delivery requirements.

Mr Desmond Gay, CEO of Keppel Logistics, said, “The logistics industry is at a crossroads, faced with emerging technologies and evolv ing customer expec ta t ions tha t a re shaking up the sector. As always, Keppel Logistics remains commit ted to adapt and grow, helping our customers to sharpen their competitive edge in the process. We are pleased to meet the challenges of a disruptive ecosystem and the emergence of online and

offline (O2O) sales platforms head-on with UrbanFox, which is set to be a force to be reckoned with in channel management and omnichannel logistics!”

UrbanFox MD, Mr Joe Choa, added, “We have been working hard behind the scenes since joining the Keppel family last year to build up new competencies togethe r w i th Keppe l Logistics. We are excited that our efforts have culminated in the launch of UrbanFox, a comprehensive omnichannel l og i s t i c s and channe l management so lut ions provider that can help brands compete effectively in the e-commerce space.”

Users can shop onl ine for UrbanFox’s rap id ly g ro w i n g o f f e r i n g s a t marketplace.urbanfox.asia. keppelite

The unveiling of UrbanFox on 24 October 2017 was officiated by (from L-R) Mr Joe Choa, MD of UrbanFox; Mr Chua Taik Him, Senior Advisor, International Enterprise Singapore; Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel T&T; Dr Koh Poh Koon, Senior Minister of State, Ministry of Trade & Industry and National Development; Dr Lee Boon Yang, Chairman of Keppel Corporation; Mr Thomas Pang, CEO of Keppel T&T; and Mr Desmond Gay, CEO of Keppel Logistics



Keppel delivers 11th ice-class vesselKeppel Singmarine marked a significant milestone with the delivery of multi-purpose ice-class vessel MPV Everest to New Or ient Mar ine Pte Ltd, a subsidiary of Luxembourg-based Maritime Construction Services SA., on 15 December 2017.

Completed with an excellent safety record, MPV Everest is the 11th ice-class vessel d e l i v e r e d b y K e p p e l Singmarine, the highest number by any company in the last decade.

Mr Abu Bakar Mohd Nor, MD (Gas & Specialised Vessels), Keppel Offshore & Marine (Keppel O&M), and MD, Keppel Singmarine, said, “We are pleased to deliver this state-of-the-art multi-

purpose ice-class vessel, built based on our proprietary design, to the highest satisfaction of Maritime Construction Services. This is the 11th ice-class vessel we have bu i l t and i t extends our track record as the leading shipyard in designing and building ice-class vessels.”

Built to the proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development, MPV Everest can operate in ambient temperatures as low as minus 30 degrees Celsius. It has an Ice Class Arc 5 notation and capabilities such as Class 3 dynamic positioning. It can also navigate in ice up to one metre in thickness.

repair and construction activities in water depths of up to 3000 metres. It can also carry out well intervention, diving support services with an 18-men twin-bell system, fire-fighting and emergency rescue operations, as well as towing and the provision of supplies in Arctic terrain.

I n t h e l a s t d e c a d e , Keppel O&M has completed 10 ice-class special ised sh ipbu i ld ing p ro jec t s , excluding the MPV Everest. These include four ice-class Anchor Handling Tug Supply/rescue vessels, two icebreakers, two ice-class supply vessels , an ice-class multipurpose duty-rescue vessel and an ice-class Floating Storage and Offloading vessel. keppelite

Mr Knut Reinertz, Director of Maritime Construction Services, said, “The addition of this highly versatile, robust and high specification multi-purpose ice-class vessel to our fleet will enable us to provide a wide variety of value-added services to our customers. It is designed for efficient and high-performance operation even in harsh Arctic and cold climate conditions. This is a result of our experience as an operator and charterer, combined with Keppel’s expertise in specialised ice-class vessels. I am confident that the vessel will be a success when deployed in cold or warm climate regions.”

MPV Everest’s versatility allows it to execute subsea

MPV Everest is the 11th ice-class vessel delivered by Keppel Singmarine, the most by any company in the last decade



Enhancing connectivityKeppel Data Centres Holding (KDCH), a 70-30 joint venture company between Keppel Te lecommunicat ions & Transportation and Keppel Land, has partnered with the Singapore Internet Exchange (SGIX) to enhance network connectivity in Singapore. Under the terms outlined in a Memorandum of Understanding signed between the two parties, SGIX has set up its point of

presence within Keppel DC Singapore 1 in Northeast Singapore.

This partnership brings SGIX’s Internet peering points in Singapore to four, boosting its service coverage across the country. Customers of KDCH that connect to SGIX stand to enjoy reduced latency and lower operating costs from the streamlining of Internet connections. They

will also benefit from the high-speed extensive global interconnectivity afforded by the international and regional services providers that are currently peered with SGIX. The peering platform in Keppel DC Singapore 1 was completed in October 2017.

Mr Wong Wai Meng, CEO of Keppel Data Centres, said, “Keppel Data Centres has been developing top-tier,

investment-grade data centre facilities for more than a decade now. We understand that speed, accessibility and resiliency of connections are priorities for many of our valued customers as businesses shift to the cloud. We are pleased to partner with SGIX and continuously value-add to our next-generation data centre service offerings in support of Singapore’s Smart Nation push.” keppelite

Developing premium homes in Bangkok’s CBDKeppel Land, through its wholly-owned subsidiaries, Valicour Pte. Ltd. and Topalle Pte. Ltd., has entered into a conditional joint venture agreement with reputable Thai property developer, KPN LAND Co., Ltd (KPN LAND) to acquire two prime sites in Bangkok’s central business district (CBD) from KPN LAND and other existing landowners, for a total consideration of approximately THB 2.2 billion (approximately $90 million). The partners plan to develop two premium freehold condominiums projects on these sites.

Keppel Land will hold a 49% stake in the condominium projects, with KPN LAND holding the remaining

51% stake. The partners will jointly manage the two developments.

Keppel Land’s share for the total development cost for both projects is estimated t o b e a p p ro x i m a t e l y T H B 2 . 8 b i l l i o n (approximately $114 million).

The first site spans about 1,600 square metres (sm) and is located in a prime residential enclave along Sukhumvit Road on Sukhumvit soi 19, within close proximity to the Asoke commercial area. The proposed development, a high-rise condominium, will comprise approximately 140 homes in a planned 24-storey tower, with a net saleable area of about

8 ,000 sm . P rom inen t landmarks in the vicinity include Grade A office developments Exchange Tower and Interchange Tower, Terminal 21 shopping mall, and five-star hotels including Westin Grande Sukhumvit, Sheraton Grande Sukhumvit and Grande Centre Point Terminal 21.

The second project, spanning about 3,200 sm, is located in a well-established residential district along Sukhumvit Road on Sukhumvit soi 28, and will be developed into a condominium that will yield about 265 units spread across approximately 30 floors, with a net saleable area of about 16,000 sm. The site is situated in close proximity to

the popular EmQuartier and Emporium shopping malls.

The two developments will offer luxury apartments in one- and two-bedroom conf igurat ions, with a proposed total net saleable area of 24,000 sm. Future residents will be able to enjoy lifestyle facilities within the condominiums, and also excellent connectivity to other parts of the city, with the Bangkok Mass Transit System (BTS) and Mass Rapid Transit (MRT) stations located about 400 metres from the two developments.

Construct ion for both developments is expected to commence a round 3Q 2018. keppelite


26 Special Focus

Spurring Innovations

Driving innovationInnovation is an imperative for organisations operating in today’s environment of relentless competition and complexity.

In recent months, Keppel e m b a r k e d o n s e v e r a l initiatives to enhance the conditions for innovation to thrive.

ANNUAL KTAP MEETINGT h e a n n u a l K e p p e l Technology and Advisory Panel (KTAP) meeting was held on 4 and 5 December at Keppel Leadership Institute. Over 90 representatives, inc lud ing members of Keppel Corporation’s Board of Directors and CEOs of Keppel’s business units, attended the meeting.

Established in 2004, KTAP comprises distinguished technical and business experts from across the world. The panel provides technology foresight for the Keppel Group and guides project teams in innovating new products or services or in enhancing existing ones in priority areas, with the goal of generating new revenue streams for the Group.

In his opening remarks, Dr Lee Boon Yang, Chairman of Keppel Corporation, noted

that “KTAP has broadened its agenda over the years to cover more of Keppel’s diversified businesses, and devoted time and attention on sustainable urbanisation, wastewater technologies, solid waste management, alternative energy and more. This shift has helped to focus our R&D effort to enhance business value and harness group-wide synergies.

“To stay at the forefront of our business sectors, we cannot ignore technological changes nor slacken in our efforts to find novel solutions to create value. Are we doing enough to push the innovation envelope so that we can respond better and faster to these challenges? This is an effort that involves a l l Keppel i tes. Stay ing competitive and relevant is our collective mission.”

Dr Lee also presented a token of appreciation to Mr Sven U l l r ing , who stepped down in December 2016 after serving four years as Chairman of KTAP. Mr Ullring is succeeded by Prof Ng Wen Jern, a dist inguished expert in water and wastewater management and recipient of the President’s Technology Award in 2017.

In his speech at the meeting, Mr Loh Chin Hua, CEO of Keppel Corporat ion emphasised the need for Keppel to stay relevant and grow, and cautioned that “Defending the status quo could perhaps see us becoming irrelevant”.

Mr Loh said, “Keppel’s strengths lie in our ability to harness technology and to stay innovative”. Recalling that Keppel had been successfu l at re-inventing ourselves to stay relevant during its history, Mr Loh called on Keppelites to continue to innovate and harness technology to improve our va lue proposition to customers and capture new profit pools.

The meet ing featured presentations that integrated business considerations with technology inputs, with attention paid to roadmaps for commerc ia l i sat ion. Projects presented were driven by cross-functional teams of Keppelites drawn from across various business units, with support and advice by KTAP members.

Many projects demonstrated a synergistic approach, drawing on the collective strength of OneKeppel

and external partners. For instance, the Nearshore Floating Data Centres project is a partnership between Keppel Data Centre Holdings, Keppel Offshore & Marine (Keppel O&M) and Nautilus Data Technologies, Inc. to produce seawater-cooled floating and nearshore land-based data centres.

The meeting noted that digitalisation would aid the Group in transforming i t se l f , captur ing va lue and engaging its external partners and customers.

In his closing remarks, Prof Ng Wen Jern said that markets were changing rapidly and the speed of innovation was of the essence. He opined, “Innovation, that is, applied research and deployment, and not invention per se, is the key to capture value.”

KEPPEL TECHNOLOGY AND INNOVATIONKeppe l Te chno logy & I n n o v a t i o n ( K T I ) w a s launched in January 2018.

As a change agent and innovation catalyst for the Group, KTI aims to t ransform how Keppel harnesses technology and innovation to create value for stakeholders. Mr Louis Lim,

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to tap the energy-generating potential of wastewater in high-rise buildings using turbine technology with specialised IoT (Internet of Things) monitoring. The creative concept has since rece ived interest f rom potential clients such as the Housing and Development Board.

Mr Loh Chin Hua, CEO of Keppel Corporation, was a member of the judging panel. He said, “I was impressed by the many innovative ideas presented. Our goal is to empower every Keppelite to uphold our core values of agility and innovation, and contribute to paving the way to a FutureKeppel.”

TECHCONNECTA series of TechConnect talks were held by the InnovateKeppel team in the second half of 2017 to ra i se awareness of emerging technologies and their potential impact on businesses. The series featured renowned speakers from technology solutions

The annual Keppel Technology and Advisory Panel (KTAP) meeting featured presentations that integrated business considerations with technology inputs, with attention paid to roadmaps for commercialisation

Director of Group Strategy, Keppel Corporation and Chief Operating Officer, Keppel Land, was concurrently appointed to lead KTI as Managing Director from 1 January 2018.

KTI will be a platform for the Keppel Group to co-create and incubate ideas for tangible outcomes, be it to develop and improve on products and services, or enhance business models and ways of working.

A s a G r o u p - w i d e resource, KTI wil l draw on the strong expertise, experience and track record that Keppel Offshore & Marine Technology Centre (KOMtech) has built over the past decade, since its inception in 2007. Located at level 11 of Keppel Bay Tower, adjacent to the Keppel Leadership Institute, KTI has an open office concept, with facilities and programmes to foster creativity, collaboration and capabil ity-building. Interd isc ip l inary teams sponsored by Keppel ’s

business units can be housed at KTI and draw on KTI’s resources to nurture fast-moving ideas and projects across the Group. These projects could then be commercialised, rolled-out and scaled-up.

For the practical benefits of proximity to shipyard facilities for prototyping and experimentation, KTI will have a satellite office (KTI@Gul) for some Keppel O&M-sponsored projects.

KTI comprises four key pillars – InnovateKeppel, IncubateKeppel, TechKeppel, and PartnerKeppel:

InnovateKeppel focuses on idea generation, building capabilities and skills, as well as identifying macro trends and potential disruptions. Ideas with commercial viability will be incubated at KTI.

IncubateKeppel oversees teams to ensure that they are on track with project milestones, driving focus on business development and commercial viability as the end-game.

TechKeppel leads efforts on technology foresight, and provides technical input and support to project teams.

PartnerKeppel engages e x t e r na l pa r t i e s such as inst i tutes of higher l ea r n ing , gove r nment bodies and agencies, the venture capital and start-up community, as well as other leading organisations to help accelerate Keppel’s learning process, introduce new bus ine s s mode l s a n d t e c h n o l o g y, a n d offer opportunit ies for investment and acquiring new capabilities.

KEPPEL DIGITAL SYMPOSIUMThe inaugural Keppel Digital Symposium organised by Keppel Young Leaders was held on 23 October 2017. With participants hailing from diverse business units across the Group, the symposium pit teams against each other to present ground-breaking new ideas around the theme of digitalisation. The winning idea that emerged was ‘Project Urban High-rise Hydro Power’, which aims

The Keppel Digital Symposium saw inspiring and unconventional ideas from Keppelites across diverse business units



28 Special Focus

providers IBM and AECOM, and covered a wide range of topics from blockchain technology to augmented real i ty. The ta lks were well received by over 195 Keppelites from across the Group.

DPM VISIT TO CORPORATE LABORATORYOn 24 October 2017, Deputy Pr ime Minister and Coordinating Minister for National Security Mr Teo Chee Hean visited the Keppel-NUS Corporate Laboratory. Set up in collaboration with the National Research Foundat ion (NRF ) and launched in November 2013, the laboratory looks into four key research themes which are closely

aligned with Keppel O&M’s business strategies, namely, deepwater technology, deepsea seabed nodule h a r v e s t i n g , a r c t i c technology and productivity enhancement o f ya rd operations. “Researchers from Keppel-NUS Corporate Laboratory are helping to transform the offshore and marine industry – harvesting minerals which can be used for electric vehicles, renewables and aerospace applications from 4 kilometres below sea level; using robotic welding to enhance yard operations and developing mobile robot carriages to improve safety of workers in confined environments,” shared DPM Teo, who is also Chairman of NRF, in a Facebook post on the day of the visit.


INNOVATION AND QUALITY CIRCLESThe 14th Innovation and Quality Circles ( iQC) at Keppel O&M was held as part of a month-long innovation campaign. The event featured a series of exchange programmes and lunch talks involving New Builds and Conversion & Repairs divisions.

The iQC compet i t ion , themed ‘Projects for the sustainable future’, saw teams presenting innovative projects that helped the company achieve time and cost savings. Team iRobot won the coveted Star Award with a robot designed and built to conduct real-time inspections at the yard, which in turn enhances s a f e t y a n d i m p r o v e s productivity.

At the closing ceremony on 22 November 2017, Mr Chris Ong, CEO of Keppel O&M, called on Keppelites to embrace new technologies such as digitalisation and 3D printing. He shared, “Some of these ideas may be disruptive to our business model, but by identifying them and ha r ne s s i ng them early, we can provide game-changing solutions for our clients.”

INNOVATION AWARDSB r a s F E L S r e c o g n i s e d Keppelites who participated in the KOM Innovation A w a r d s a n d I N O V E Programme at a ceremony on 30 November 2017. The KOM Innovation Award is an annual competition open to all Keppel O&M companies while the INOVE Programme is an annual innovation competition held by BrasFELS. keppelite

To foster a culture of innovation, Keppelites a re encouraged to send their business ideas and concepts, as well as suggestions for operations and process improvements, to the virtual suggestion box: [email protected].

The InnovateKeppel team will select high-impact ideas to be further developed and realised at KTI.

(From L-R) Mr Loh Chin Hua, CEO of Keppel Corporation, Mr Teo Chee Hean, Deputy Prime Minister and Coordinating Minister for National Security, Prof Tan Chorh Chuan, then-President of NUS, and Mr Chris Ong, CEO of Keppel O&M, with a polymetallic nodule extracted from more than 4,000m below sea level



Shaping the future Keppel Corporation marks its 50th anniversary with a special insignia which aptly conveys the passion of our people and our continuing journey of growth.

LOGO RATIONALE T h e l o g o s y m b o l i s e s continuous building and progress, and is made up of spurs, a key element in the Keppel wordmark. The vibrant colours signify the diversity and energy of Keppelites.

Forming the building blocks of Keppel are our people, culture and values, and our businesses, working together in synergy to ensure the whole is greater than the sum of our parts.

We are shaping the future as we realise our common vision and mission, providing robust solutions for sustainable urbanisation. keppelite

A model for smart citiesSino-Singapore Tianjin Eco-City (Eco-City), the landmark bilateral project between Singapore and China, is forging ahead as a model for China’s smart cities.

Following the signing of an agreement between Sino-Singapore Tianjin Eco-City Administrative Committee and Chinese e-commerce reta i le r JD.com on 18 January 2018, new smart city applications have been introduced in the Eco-City. This includes autonomous delivery vehicles and an unmanned convenience store.

The autonomous delivery vehicles are able to make turns as wel l as avoid pedestrians and road blocks. Presently delivering to four districts, there are plans for this service to be extended to the ent ire Eco-City. Meanwhile, the unmanned c o n v e n i e n c e s t o re i s equipped with the latest smart technologies like facial recognition, behavioural analysis, intell igent site selection and smart pricing.

To date, the Eco-City has secured 60 smart c i ty application projects. keppelite

The autonomous delivery vehicles presently deliver parcels to four districts in the Eco-City



Execution excellenceWith cutting edge technology and an experienced project team, Keppel Singmarine is on track to extending its impressive track record of designing and building some 400 ships of various specifications and functions.

SOLUTIONS ACROSS GAS VALUE CHAINKeppel Singmarine struck first steel for the building of two small-scale Liquefied Natural Gas (LNG) carrier vessels for Stolt-Nielsen Gas B.V., a subsidiary of Stolt-Nielsen Limited, at its Nantong shipyard on 14 December 2017.

These versatile small-scale LNG carriers will have a class notation for bunkering, and will be able to reach end users located in remote areas which are not served by pipelines.

On 15 December 2017, Keppel Singmarine launched two dual-fuel tugs built for Keppel Smit and Maju Maritime. In a demonstration of synergy and innovation, the launch mechanism leveraged the expertise of Asian Lift, a partnership between Keppel FELS and Smit Singapore, to lift the entire 65-tonne tug off the quayside and into the water. In doing so, the

team had to ensure that the centre of gravity of the vessel was accurately calculated, and that the hull structure and lifting eye lugs, which secured the vessel to the crane, were strong enough to withstand the stress caused by the lifting.

NON-OIL & GAS SOLUTIONSKeppel Singmarine marked another successful milestone in its suite of non-oil and gas solutions with the keel laying of a Trailing Suction Hopper Dredger for its long-standing customer, the Jan De Nul Group.

Held on 13 December 2017 at the Keppel Nantong Shipyard in China, this is the third dredger built for the Jan De Nul Group. The dredger is expected to be completed in 1H 2019. keppelite

Keppel delivers first rig of 2018Keppel continues to set the industry benchmark for rigs that provide superior pe r fo rmance and a re efficient and reliable.

On 5 January 2018, Keppel FELS delivered the jackup rig, SAGA, to Borr Drilling Limited (Borr Drilling) safely, on time and on budget. Built to Keppel’s proprietary KFELS Super B Class design, SAGA is the first of five jackup rigs that Keppel is building for Borr Drilling.

Mr Chris Ong, CEO of Keppel Offshore & Marine

(Keppel O&M), said, “This will be the 12th KFELS Super B Class rig and the 66th rig of the KFELS B Class family to enter the market. Keppel O&M continually engages our customers to develop win-win solutions. As the drilling market recovers, the quality and capabilities of our KFELS B Class designs will be important differentiators for rig owners seeking efficient and reliable operations.”

Mr Simon Johnson, CEO of Borr Drilling, added, “Our partnership with Keppel FELS allows us to provide rigs with

leading-edge specifications ready to deliver the highest operational performance to our customer base.”

The KFELS Super B Class rigs are designed to operate in water depths of up to 400 feet, and drill down to depths of 35,000 feet. With a two million pound drilling system and a maximum combined cantilever load of 3,700 kips, the KFELS Super B Class is equipped with tremendous horsepower during drilling operations. keppelite

The launching of the dual fuel tugs by Asian Lift and Keppel Singmarine demonstrated synergy, innovation and technical expertise

Keppel continues to deliver rigs that provide superior performance and are efficient and reliable



Bolstering leadership

Since 1 January 2018, Mr Louis L im, Director o f G roup S t r a t egy & Development (GSD), Keppel Corporation, has assumed the role of COO of Keppel Land and MD of the new Keppel Technology and Innovat ion un i t which drives digitalisation and innovation initiatives across the Group.

Mr Louis Lim will continue in his current role as Director of GSD until 1 April 2018. Mr Sebastien Lamy has been appointed to succeed him in this role with effect from 2 April 2018. Mr Lamy had been with Bain & Company for over 15 years and served as Partner and Head of the firm’s Private Equity and Transact ion Services Practice in Southeast Asia. He was also Co-head of

Ms Cindy Lim

Bain’s Southeast Asia Digital Practice. During his career with Bain, Mr Lamy managed pre-acquisition and transaction support to private equity and financial investors across multiple sectors, including infrast ructure, o i l and gas, manufacturing and technology. He was also involved in transformation programmes for private equity-owned companies, cover ing geograph ica l expansion, productivity i m p r o v e m e n t s a n d multichannel strategies. In addition, he led consulting projects in Asia, Europe and the US, with a focus on operational and digital transformation. Mr Lamy is no stranger to Keppel, having been involved in various projects with Keppel previously.

Mr Lamy holds an MBA from INSEAD, and an MSc in Business Administration from HEC Paris. Separately, following the recent formation of Keppel Urban Solutions (KUS), Ms Cindy Lim, Director, G r o u p C o r p o r a t e Deve l opmen t , Keppe l Corporation, has taken on the concurrent role of MD, KUS, effective 1 January 2018. Ms Lim will lead this new unit to capture business opportunities in integrated m a s t e r d e v e l o p m e n t , tapping on the mega trends of rapid urbanisation and the increasing global focus on sustainability. She will collaborate and work closely with the various business units to deliver new models for urban developments in promising markets. keppelite

Mr Louis Lim Mr Sebastien Lamy



Advancing solutions for cleaner energy

Keppel Offshore & Marine (Keppel O&M) is at the forefront of prov id ing sustainable energy solutions as the industry focuses on cleaner energy technologies.

As pa r t o f S ingapore International Energy Week (SIEW) 2017, Keppel O&M entered into a Memorandum of Understanding (MoU) with Nanyang Technological U n i v e r s i t y ( N T U ) o n 24 November 2017, to e xp lo re co l l abo ra t i on opportunities in renewable energy and micro-gr id projects.

Th i s i s pa r t o f NTU’s R e n e w a b l e E n e r g y Integration Demonstrator Singapore (REIDS) project, which will research and develop solutions in micro-

grid infrastructure and look into the integration of solar, wind and tidal power, as well as waste-to-energy and power-to-gas technologies.

FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum, also showcased their commercial LNG bunkering solutions during the Gas Asia Summit. Held in conjunction with SIEW on 25 and 26 October 2017, the Summit was a good opportunity for the company to share more on their recent achievements, such as the completion of the first commercial LNG bunker transfer in Singapore for the floating liquefaction vessel, Hilli Episeyo. keppelite

Mr Mohamed Sahlan Bin Salleh (fourth from right), ED (Operations), New Builds, Keppel O&M, was one of the signatories at the REIDS MoU signing ceremony witnessed by Dr Koh Poh Koon (ninth from right), Senior Minister of State, Ministry of Trade and Industry and Ministry of National Development

FueLNG showcased their recent achievements at the Gas Asia Summit, such as the first commercial LNG bunker transfer in Singapore for the floating liquefaction vessel, Hilli Episeyo



Milestones in 2017Q1 Reflecting the market’s growing confidence in the Sino-Singapore Tianjin Eco-City, three land parcels were sold at record prices at a land auction for a total of about RMB 5 billion.

Keppel Land furthered its strategy of asset recycling with the divestment of its 80% interest in a prime site in Surabaya’s central business district (CBD). Keppel Land also increased its stake in Saigon Centre in Ho Chi Minh City, Vietnam.

Keppel Infrastructure (KI) signed a 25-year Water Purchase Agreement with PUB, the national water agency, for the Keppel Marina East Desalination Plant.

Keppel Offshore & Marine (Keppel O&M) delivered the

Floating Production Storage and Offloading vessel (FPSO) P-66 to Tupi BV and the FPSO John Agyekum Kufuor to a subsidiary of Yinson Holdings Berhad.

Keppel Corporation held its annual Global Keppelites Forum on 9 February 2017, where CEO Mr Loh Chin Hua spoke on the Group’s strategy and progress.

K 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 U n d e r s t a n d i n g w i t h Vietnam’s State Capital Investment Corporation to collaborate on investment opportunities in Vietnam.

The Keppe l D i s cove ry Wetlands at the Singapore Botanic Gardens, established w i th a $2 .08 m i l l i on commitment from Keppel, was officially opened by

Singapore Prime Minister Lee Hsien Loong on 31 March 2017.

Q2 KI signed an agreement with EDB Singapore to develop, own and operate a state-of-the-art gasification facility on Jurong Island, Singapore. This was an important step in preparation for the final investment decision, to be taken at a later date.

Keppe l O&M se cu red contracts worth a total of $348 million, to build two Liquefied Natural Gas (LNG) carrier vessels, two Trail ing Suction Hopper Dredgers, and to undertake the convers ion / repa i r /modification of four vessels, as well as provide technology and support services for the construction of a Tension Leg Wellhead Platform.

The innovative design and environmentally friendly features of the Keppel Marina East Desalination Plant demonstrates KI’s push for sustainable urbanisation

Keppel Land acquired an addit ional stake in the Junction City mixed-use development in Yangon, M y a n m a r, f o r a b o u t US$48.6 million.

Testament to the reliability of Keppel’s proprietary KFELS Super B Class rigs, Keppel FELS completed the novation of contracts for five jackup rigs under construction for Transocean to Borr Drilling for US$1.1 billion, including a down payment of US$275 million.

S i n g a p o r e ’s D e p u t y Prime Minister Tharman Shanmugaratnam visited the Sino-Singapore Tianjin Eco-City and officially opened the Sino-Singapore Tianjin Eco-City Water Reclamation Centre, a joint venture between KI and T ianjin Eco-City Investment and Development Co., Ltd.

Harnessing synergies of the Group, Keppel Land China and Alpha Investment Partners, together with Allianz Real Estate, acquired mixed-use development Tr inity Tower (formerly known as SOHO Hongkou) in China for approximately US$525 million.

Keppel REIT announced the acquisition of a 50% stake in a premium office tower




tender for a prime residential site in Serangoon North Avenue 1 , wh i ch can yield over 600 homes in an attractive and mature residential estate.

Keppel Land divested its 100% stake in Waterfront Re s idence s , Nan tong , for a net gain of about $79 million.

Capturing opportunities in the market for Jones Act vessels, Keppel AmFELS secured a contract worth more than US$400 million from Honolulu-based Pasha Hawaii for the construction of two dua l - fue l LNG containerships, to be built to Keppel’s proprietary design.

Keppel O&M entered into a Heads of Agreement with Pavilion Energy and Indonesia state-owned PT Perusahaan Listrik Negara to explore opportunities in the development of small-scale LNG distribution in West Indonesia.

FueLNG, a joint venture between Keppel and Shell Eastern Petroleum (Pte) Ltd, achieved the first commercial LNG bunker transfer in Singapore by completing truck-to-ship bunkering for the Floating Liquefaction Vessel (FLNGV) Hilli Episeyo.

Enhancing its presence in a key data centre hub, Keppel DC REIT acquired B10 Data Centre in Dublin, Ireland, for approximately $101.3 million.

Keppel Land entered into a conditional sales and purchase agreement with Bank Central Asia to acquire a prime site in Jakarta’s CBD, which can yield about 400 luxury apartments in one of the city’s most coveted addresses.

Keppel O&M del ivered four non-drilling projects, namely MTC Ledang to MTC Engineering, Cidade de Campos dos Goytacazes MV29 to MODEC, the FPSO BW Catcher to BW Offshore, and Khankendi, a subsea construction vessel to the Shah Deniz consortium.

Q4T h e A D C F c l o s e d a t US$1 bill ion, double its initial target size, after a commitment from the Canada Pen s i on P l an Investment Board to allocate an initial US$350 million, with an option to invest a further US$150 million.

Keppel Shipyard delivered the world’s first converted FLNGV, Hilli Episeyo, for operation in offshore Kribi, Cameroon.

Capitalising on the mega trends of rapid urbanisation and the increasing global focus on sustainabil ity, Keppel announced the establishment of a new business unit, Keppel Urban Solut ions (KUS), which aims to be an end-to-end integrated master developer o f smar t , su s ta inab le precincts in Asia.

ADCF acquired a 70% stake in Keppel DC Singapore 4 through a share purchaseagreement

The world’s first converted FLNGV, Hilli Episeyo, was delivered to Golar LNG Partners

in Melbourne from Australia Postal Corporation.

Keppel O&M delivered the first modern semisubmersible to be almost completely built in Azerbaijan, Heydar Aliyev.

Q3 Deepening its footprint in China, Keppel Seghers secured two contracts worth over a total of $20 million

to provide waste-to-energy technology and services for two projects in Beijing and Hunan.

The Alpha Data Centre Fund (ADCF) acquired a 70% stake in Keppel DC Singapore 4 through a share purchase agreement.

Keppel Land and Wing Tai Land jointly won the




Keppel Logistics launched UrbanFox, an omnichannel l og i s t i c s and channe l management so lut ions brand, which brings together Courex’s digital competencies with Keppel Logis t ics ’ established networks and capabilities to accelerate customers’ growth in the digital economy.

Keppel Land announced the proposed divestment of its 80% stake in mixed-use development Keppel Cove on Modao Island, Zhongshan City, China, as well as a 20.5-hectare site in West Bali’s Tanah Lot district. When comple ted , the divestments will yield gains of about $290 million and $17.6 million respectively.

The 11th Keppel Group Safety Convention was held in November, with the theme ‘Driving HSE Excellence as OneKeppel’.

Reflecting Keppel Capital’s growth plans, the Keppel-KBS US REIT was l isted on the Main Board of the Singapore Exchange, raising gross proceeds of US$553.1 mi l l ion with its shares over six times subscribed due to robust investor demand.

Keppel Seghers and Zhen Hua Engineering Co. Ltd. jointly secured a contract to design, build and operate a n I n t e g r a t e d Wa s t e Management Facility off the coast of Shek Kwu Chau,

KUS will collaborate with Keppel Land on Saigon Sports City, a 64-hectare township in Ho Chi Minh City, Vietnam

Hong Kong. KI’s share of the contract is approximately $1.95 billion.

Keppel O&M secured an FPSO conversion contract from SBM Offshore, as well as projects worth approximately $130 million from repeat customers Petrobras and SOFEC. Keppel O&M also delivered the multi-purpose ice-class vessel, MPV Everest, to Maritime Construction Services.

Keppel Land expanded its land bank with the acquisition of prime sites in China, Vietnam and Thailand. Keppel Land acquired a prime residential site in Wuxi, China, for approximately $517 mill ion through a

government tender, entered into a conditional sales and purchase agreement to acquire two prime sites in Ho Chi Minh City, and entered into a joint venture agreement with KPN Land to acquire two prime sites in Bangkok’s CBD for about $90 million.

Keppel O&M reached a g lobal reso lut ion with authorities in the US, Brazil and Singapore, bringing closure to the corruption investigations in Brazil. keppelite



Strengthening presence in WuxiK e p p e l L a n d C h i n a strengthened its business presence in China by securing a pr ime 18.03-hectare residential site in Wuxi t h r o u g h i t s w h o l l y -owned subsidiary, Keppel Lakefront (Wuxi) Property Development Co., Ltd, for a total consideration of R M B 2 , 5 3 3 m i l l i o n (approximately $517 million) in a government land tender.

S i tua ted i n a matu re residential precinct within the Xinwu district, the site has a permissible gross f l o o r a r e a o f a b o u t 360,500 square metres.

Keppel Land China plans to develop the site into a r e s i d e n t i a l p ro j e c t comprising 2,053 high-rise, 456 mid-rise and 246 low-rise units.

T h e s i t e i s o n l y f i v e kilometres away from Wuxi’s downtown area and is in close proximity to the Sunan Shuofang International Airport and Wuxi railway station. The site is also highly accessible via six bus routes and the Line 3 Wuxi Metro which is currently under construction. It is also well supported by a host of amenities nearby, such as

the R&F Commercial Street, Shin Shopping Mall and Ren De Hospital.

W i t h W u x i ’s s t r o n g economic growth and positive residential market outlook, the new residential development is expected to receive strong demand from homeowners looking for high-quality and thoughtfully designed homes. keppelite

Connecting with Singaporeans abroadOn 24 November 2017, over 150 Singaporeans participated in a dialogue session with Mr Loh Chin Hua, CEO of Keppel Corporation, at the Singapore Embassy in Beijing, China, as part of the Singapore Speakers Series.

Organised by the Overseas S ingaporean Uni t , the Singapore Speakers Series a ims to foster greater interaction between eminent Singapore-based leaders and Singaporeans living abroad.

At the session, Mr Loh provided an overview of the Keppel Group, and shared on Keppel’s involvement in China since 1984. Today, the Group has established presence across 27 Chinese cities, and is harnessing

synergies across its businesses to deliver solutions for China as it pursues sustainable urbanisation. The Keppel Group a l so l eads the Singapore consortiums in the first two government-to-government projects between Singapore and China, namely the China-Singapore Suzhou Industrial Park and the Sino-Singapore Tianjin Eco-City.

Mr Loh ’s speech was followed by a 45-minute interactive question and answer session, where he candidly exchanged views with the Singaporeans based in Beijing. keppelite

Mr Loh Chin Hua, CEO of Keppel Corporation, connecting with overseas Singaporeans in Beijing at the Singapore Speakers Series held on 24 November 2017



Keppel Land divests stake in West Bali sitePT Purimas Straits Resort, an associated company of Keppel Land, in which the latter holds an effective 24 .5% s take , ente red in to an ag reement in November 2017 to divest a 20.5-hectare site in West Bali’s Tanah Lot district t o P T B a l i S u d a m a l a Development. Keppel Land concurrently divested its entire shareholding interest

in PT Purimas Straits Resort, through capital reduction and sale of shares.

Keppel Land recorded a net divestment gain of about $17.6 million from the transactions. Mr Goh York Lin, President (Indonesia), Keppel Land, said, “We constantly review our portfol io and seek

opportunities to recycle our assets for higher returns. The divestment will allow Keppel Land to redeploy capital and scale up in Indonesia where we are focused on Greater Jakarta.”

Keppel Land had earlier announced the acquisition of a prime site in Jakarta’s Sudirman central business district where it plans to

develop a premium high-rise tower which could y ie ld about 400 luxury a p a r t m e n t s . K e p p e l Land’s other projects in Jakarta include residential deve lopments , namely West Vista and The Riviera at Puri, as well as an office development, International Financial Centre Jakarta. keppelite

Award-winning greensKeppel Land’s golf courses achieved top honours at the 18th Asian Golf Awards on 16 November 2017, held in Danang, Vietnam. R i a B in tan Go l f C lub won ‘Best Golf Course in Indonesia’, while Spring City Golf & Lake Resort was

named ‘Best Golf Course in China including Hong Kong and Macau’.

The annual Asian Golf Awards celebrates excellence in the golfing industry. Results are based on an online poll held from March

Keppel Land’s golf courses, Spring City Golf & Lake Resort (pictured), in Kunming, China, and Ria Bintan Golf Club in Indonesia received top honours at the Asian Golf Awards 2017

to June 2017. A total of more than 97,000 votes were cast.

Mr Khoo Peck Khoon, GM (Golf and Marinas), at Keppel Land Hospitality Management, said, “We are indeed very proud and honoured to be presented

with these prest ig ious awards. We will continue to strive for the highest standards of service and excellence at our golf clubs for our golfers.” keppelite


38 HSEMATTERS

Committed to safety

SAFETY, A COLLECTIVE RESPONSIBILITYSafety is a core value at Keppel, and an integral part of our business.

On 7 November 2017, over 450 employees, partners, contractors and subcontractors reaffirmed their collective commitment to safety at the 11th edition of the Keppel Group Safety Convention with the theme, ‘Driving HSE Excellence as OneKeppel’.

In his opening address, Mr Loh Chin Hua, CEO of Keppel Corporation, emphas ised the importance of

Dear Keppelites,

As we enter 2018, let us reflect on 2017 and our achievements as a Group.

In 2017, the Group made significant strides in its Zero Fatality Roadmap. This includes the completion of safety trainings for 176 Singapore-based Front Line Managers, Keppel Offshore & Marine’s (Keppel O&M) implementation of its Life Saving

Rules globally and the near-finalisation of the Group High Impact Risk Activities (GHIRA) standards.

Making its debut at the Keppel Group Safety Convention in November 2017 were two safety videos – CEO’s Safety Message and an animation entitled ‘Rex: The 5 Key Safety Principles’. The videos will serve to strengthen engagement with workers on the ground.

We also continued to harness synergies to augment the Group’s safety efforts. Common Health, Safety and Environment (HSE) training resources were pooled and a HSE Talent Review Panel was set up to support the continued development of HSE talents.

Despite our efforts, there were unfortunately three fatalities in 2017. Although this is a significant improvement from 2016, a single fatality is one too many and we must strive to do even better.

2018 will see the continued wave of disruptions in the forms of digitalisation and artificial intelligence. In addition to supporting the growth of our businesses, these new technologies can be utilised to enhance our existing safety efforts.

Against this backdrop, let us begin the year by reaffirming our commitment to execute our zero fatality strategy and effect a high-performing safety culture by leveraging technology and synergies across the Group.

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

R K Jaggi

collaborating across business units and departments to drive improvements in safety performance. He shared, “The same collaborative efforts for OneKeppel can be applied through the sharing of best practices and lessons learnt globally to avoid recurrence of similar safety lapses.”

Gracing the event as Guest-of-Honour was Er Ho Siong Hin, Commissioner for Workplace Safety and Health (WSH), Ministry of Manpower. Commending Keppel’s commitment to safety in his keynote address, he said, “I would like to congratulate the Keppel Group

for clinching 36 awards at this year’s WSH Awards. It goes to show how safety and health is a top priority in Keppel and how its workforce is engaged and committed to high WSH standards.”

The convent ion a l so saw the continuation of the annual Keppel Group Safety Awards which recognised 21 employees who have gone the extra mile to enhance safety at their worksites. Thirty-four teams from across the Group were also awarded for their outstanding Safety Innovation Team projects.


HSEMATTERS 39

The convention also featured a lively sharing session by seven frontline managers who d i scussed how employees can take action to reinforce safety at work and at home.

In his closing remarks, Mr Tan Ek Kia, Chairman of Keppel Corporation’s Board Safety Committee (BSC), reiterated the BSC’s commitment to strengthening the Group’s safety culture.

“We take pride in adopting a hands-

on approach to safety management and will continue to visit worksites and engage all of you to better understand how and where we can help maintain high safety standards. While the BSC continues to lead efforts to improve the Group’s safety performance, safety is and will remain a collective responsibility,” Mr Tan emphasised.

The coveted Chairman Safety Challenge Trophy for 2017 was awarded to Keppel Infrastructure for its strong safety

performance as well as innovative safety projects and initiatives.

ACCIDENT PREVENTIONAs part of its 15th Internal Week of Acc ident Prevent ion (S IPAT) that was held from 30 October to 3 November 2017, BrasFELS launched the Keppel O&M Life Saving Rules, a set of critical steps to help prevent accidents. Employees also visited safety exhibition booths and attended workshops on topics such as safety, alcohol and drugs.

A drawing competition was also organised for the children of BrasFELS employees. Themed ‘Staying alert and keeping safe’, employees were encouraged to share the Keppel O&M Live Saving Rules with their children, who will then illustrate how the theme can be applied at home, at school or in the workplace.

SAFETY ACCOLADEAs a testament to its commitment to safety, Keppel Land China’s Tianjin Safety Awareness Centre clinched the Honorary Award at the Global Trend Awards 2017, organised by People’s Daily Online and its news subsidiaries.

The Tianjin Safety Awareness Centre is the first in China to be built by a developer. The Centre aims to enhance the safety awareness of employees and contractors.

Mr Ben Lee, President of Keppel Land China, said, “Safety has always been one of Keppel’s core values. We are committed to ensuring that our staff can work in a safe environment and return home safely every day. The award serves as a badge of honour and recognition of our hard work, and we are encouraged to do even better.” keppelite

Frontline managers from the different business units shared their views on strengthening safety culture across the Group

Keppel Infrastructure was awarded the coveted Chairman Safety Challenge Trophy for its exemplary safety performance as well as innovative safety projects and initiatives



Real estate luminaryFor his contributions and unwaver ing dedicat ion to Singapore’s real estate

sector for the past 15 years, Mr Tan Swee Yiow, CEO of Keppel REIT Management,

Mr Lawrence Wong (centre), Minister for National Development and Second Minister for Finance, presenting Mr Tan Swee Yiow (far left), CEO of Keppel REIT Management, with the Luminary Service Award for his invaluable contributions to Singapore’s real estate sector over the past 15 years

Green recognitionOn 12 December 2017, Keppel Land was presented w i t h t h e E c o - O f f i c e Appreciation Award at the inaugural Eco-Establishments Apprec iat ion Lunch in recognition of its continuous efforts to implement green initiatives at its offices, as well as inculcating a green mindset among its staff.

The event was graced by M r M a s a g o s Z u l k i f l i , Singapore’s Minister for the Environment and Water Resources.

Keppel Land has been certified a green Eco-Office for a consecutive ten years.

Within its offices, eco-friendly products such as Totally Chlorine-Free or Elemental Chlorine-Free printing paper and Energy Star-labelled computers are used. Waste paper is regularly collected and recycled and energy-efficient light emitting diode (LED) lightings are used in all its offices.

Organised by Singapore Environment Council (SEC), the event recognises the efforts of organisations and retailers under SEC’s Eco-Establishments programmes, namely Project: Eco-Office, Pro ject : Eco-Shop and Project: Eco-F&B, for being

certified consecutively for at least seven years.

The event also marked

the launch of the digital SEC Green Map platform which aims to drive green consumerism in Singapore. keppelite

Ms Serena Toh (second from left), GM, Corporate Services and Corporate Social Responsibility, Keppel Land, received the Eco-Office Appreciation Award on behalf of Keppel Land from Mr Masagos Zulkifli (second from right), Singapore’s Minister for the Environment and Water Resources

was presented with the Luminary Service Award by the Real Estate Developers’ Association of Singapore ( R E D A S ) a t i t s 5 8 t h Anniversary Dinner, held on 14 November 2017. Gracing the event was Mr Lawrence Wong, Minister for National Development and Second Minister for Finance.

Prior to his appointment as CEO of Keppel REIT Management in 2017, Mr Tan was Pres ident, Singapore, in Keppel Land and concurrently Head,

Keppel Land Hospitality Management.

Mr Tan is a Board Member and President of the Singapore Green Building Council and a Member of the World Green Building Council’s Corporate Advisory Board. He also serves as Honorary Treasurer on the Management Council of REDAS and sits on the Workplace Safety and Health Council (Construction and Landscape Committee). keppelite

Empowering Lives 41


Empowering Lives 41

Nights to rememberDINNER AND DANCE As 2017 drew to a close, Keppelites across the Group bonded over an evening of good food and entertainment at their respective business units’ Dinner and Dance (D&D) parties.

I t was a spec ia l n ight for Keppel Corporation, Keppel Capital and Keppel

Enterprise Services as they came together for their inaugural joint D&D, themed ‘Movie Night’.

Meanwhile, employees from Keppel Infrastructure (KI) had a ball of a time at the ‘Keppel Baywatch’ night.

F i n a l l y , K e p p e l Te lecommunicat ions &

Transportation employees donned their glitziest outfits for the company’s popstar-themed party and were treated to a tongue-in-cheek skit put up by its employees.

FRIENDS OF KEPPEL On 6 December 2017, Keppel’s senior management networked with diplomats, j o u r n a l i s t s , a n a l y s t s ,

partners and Keppelites at the annual Friends of Keppel party. Hosted by Keppel Corporation’s Group Corporate Communications division, the annual party provides a platform for Keppel’s management to thank its stakeholders for their continued friendship and support. keppelite

1. Stealing the limelight at ‘Movie Night’ were the Minions from Keppel Capital and a medley of movie characters from Keppel Corporation; 2. Keppel Corporation’s Heads of Departments entertained the audience with an innovative adaptation of the ABBA classic ‘I Have a Dream’ to describe the Keppel story; 3. At KI’s D&D, guests were serenaded by Mr Jackson Goh (centre), GM of Business Development, Environmental Infrastructure, KI; Ms Janice Bong (right), GM of Energy Infrastructure, KI; and Jeremiah Chen (left), Trading Executive, KI; 4. (From L-R) Mr Loh Chin Hua, CEO of Keppel Corporation; Mr Chew Hwee Yong, Divisional Director, Natural Resources Division, Transport & Logistics Group, International Enterprise (IE) Singapore; and Mr Chua Taik Him, Senior Advisor, IE Singapore, catching up at the disco-themed Friends of Keppel Party; 5. Mr Nathan Gee, Vice President, ASEAN Resources Research, Bank of America Merrill Lynch (left) speaking with Mr Chris Ong (right), CEO, Keppel Offshore & Marine at the Friends of Keppel Party

1

2 3

4 5

42 Empowering Lives


Powering the future“Our philosophy of success goes beyond being number one. We are also committed to bringing value to our stakeholders and working closely with customers to arrive at a win-win situation,” shared Ms Janice Bong, GM of Energy Infrastructure, Keppel Infrastructure (KI),

at the Leaders Dialogue organised by Keppel Young Leaders on 30 November 2017.

With the liberalisation of Singapore’s retail electricity market s la ted for the second ha l f o f 2018 , Ms Bong spoke on how

Keppel Electric is positioning i t se l f to be ready for competition. Noting the complexities in the electricity industry, Ms Bong deftly explained the mechanics and inner workings of Singapore’s electricity market.

Her sharing was followed by a lively question and answer sess ion wh ich covered a range of topics, f rom deve lopments in green energy to career tips. Having started her career in the Finance division at KI, Ms Bong shared on her experience in moving to the commercial side of

the business eight years ago. Reflect ing on her experience, she reminded young Keppelites that having passion for the job is only half the battle won, and that hard work is still critical.

Among those inspired by the session was Deepthi Susarla, Deputy Manager, Group Human Resources, Keppel Corporation. She enthused, “Today’s session allowed me to better appreciate how Keppel is well-positioned to realise the opportunities presented in the sustainable u rban energy space .” keppelite

Keppelites from various business units learnt about the inner workings of the Singapore retail electricity market

Tribute to a Keppel stalwartAfter 27 years of service, Mr Ang Wee Gee, CEO of Keppel Land, stepped down on 31 December 2017 to pursue other interests. Mr Loh Chin Hua, CEO of Keppel Corporation, has assumed the role of Executive Chairman of Keppel Land with effect from 1 January 2018.

On 11 January 2018, Keppel’s directors and senior management gathered for a private dinner to express appreciation to Mr Ang for his contributions to the Company.

Mr Loh said, “On behalf of the board of Keppel Land, I would like to thank Wee Gee for his valuable contributions to the company. Wee Gee played an instrumental role in growing Keppel Land’s businesses overseas and in developing Keppel Land into the multi-faceted property player that it is today, with a strong presence in many key cities in Asia. We wish Wee Gee success in his future endeavours.” keppelite

Dr Lee Boon Yang (right), Chairman of Keppel Corporation, and Mr Loh Chin Hua (left), CEO of Keppel Corporation and Executive Chairman of Keppel Land, presented Mr Ang Wee Gee (centre), former CEO of Keppel Land, with a token of appreciation for his valuable contributions to the company

Empowering Lives 43


In it to win itR iva l r i e s between the Atlantic, Caspian and Pacific teams reached scorching levels as teams battled neck and neck in the netball, badminton, volleyball and basketball matches.

On 8 October 2017, the three teams pitted their shoot ing sk i l l s against one another in the highly-contested netball challenge. Team Pacific claimed the street division champion trophy, but were edged out in the mixed division by Team Atlantic after a nail-biting first match which ended in a draw. Despite this, Team Pacific withstood pressures from the other teams to claim the Netball Challenge Trophy.

Tensions rose again on 29 October 2017 at the badminton challenge as spectators were treated to long rallies and spectacular smashes. Team Atlantic

overcame their opponents to emerge with three gold medals and the coveted Badminton Challenge Trophy.

The teams crossed swords again at the vol leybal l c h a l l e n g e h e l d o n 5 November 2017. Team Pacific, who was regarded as the dark horse, drew first blood in the match against Team Caspian. However, defending champion, Team Atlantic, held their ground in subsequent matches to cl inch the Volleyball Challenge Trophy.

Teams locked horns on the basketball court on

Team Pacific (in black) in a tightly contested match against Team Caspian (in blue)

TEAM GOLD SILVER BRONZE

ATLANTIC 9 4 5

CASPIAN 7 5 9

PACIFIC 5 12 7

Score Board: Total medal tally as at 15 January 2018

Team Atlantic (in red) overcame strong performances from their opponents to clinch the coveted Badminton Challenge Trophy

14 January 2018. Team Caspian’s commendable teamwork earned them the title for the male category a n d t h e B a s k e t b a l l Championship Trophy.

The Keppel Games wil l continue with tennis and the highly anticipated Dragon Boat race. Stay tuned! keppelite

Team Caspian (in blue) and Team Atlantic (in red) in a closely fought basketball match

44 Empowering Lives


Keppelites Around the World

Rajan (centre) with his Operations colleagues at the Domestic Solid Waste Management Centre in Qatar. (From L-R) Rizalito Torres, Acting Section Head, ADCP Operation; Ye Thu Rein, Manager, AUXP and ADCP Operation; Rajan Babu Muthu Krishnan, Senior Manager, Operations; William Solomon, Manager, WTEP Operation; and Paul Ranger, Section Head, WTEP Operation

“Wherever you are, it is important to make the best of your experience and strive for self-improvement.”

This is one of Rajan Babu Muthu Kr i shnan’s key takeaways from his posting to Doha, Qatar. Originally from Coimbatore, India, R a j a n c o n s i d e r s h i s decision to accept a post at Qatar’s Domestic Solid Waste Management Centre

Broadening horizons in the Middle East

(DSWMC) in 2013 to be his best decision yet.

“While working abroad comes with many challenges, it has allowed me to gain a more holistic understanding of the industry and broaden my career prospects ,” reflected Rajan, who is presently Senior Manager of Operations at DSWMC.

Working abroad has also

honed Rajan’s interpersonal skills. He shared, “Over here, I work in a team with 10 different nationalities. Desp i t e ou r d i f f e ren t backgrounds, we work together to achieve the same goals. At the same time, I have learnt so much about different cultures and have become a more effective communicator!”

As a father of two, Rajan

cites the biggest drawback as being away from his children who are studying in India.

“I go back to India at least twice a year to spend time with my family. My children also visit Qatar during their school holidays. While I do miss them, I am happy that they have the opportunity to venture into the Middle East, a place they wouldn’t have visited if I did not work here,” he adds.

Rajan spends his weekends visiting the city’s scenic sites. One of the unique hobbies he has picked up is dune bashing through the sprawling deserts of Qatar. He has also visited popular tourist destinations, like the city’s cultural heritage centre and the Corniche, a waterfront promenade extending several kilometres along Doha Bay.

To Rajan, working abroad has offered him an invaluable experience. He mused, “You could be doing the exact same job, in the exact same company, and yet your experience can be completely different when working in another country.” keppelite

Empowering Lives 45


Over 20 former Keppelites participated in a walk down memory lane at the historic docks along Keppel Bay. The walk was led by Mr Hoe Eng Hock, President of Keppel O&M Alumni

Celebrating strong tiesOn 16 November 2017, over 140 former Keppelites celebrated friendship and strong ties at the Keppel Offshore & Marine (Keppel O&M) Alumni Dinner.

The event, themed ‘Happy Memories’, kicked-off with a short walk down memory lane at the historic docks along Keppel Bay. The evening’s activities continued at the Keppel Leadership Institute where participants enjoyed activities, including an exhibition of paintings of Keppel’s shipyards by Mr Chung Chee Kit and a sharing session by Mr Seow Tiang Keng, who spoke on his 45 years working in Keppel.

Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel O&M, acknowledged the significant contributions of Keppel O&M alumni members in

Developing skillsetsWith the belief that people are a company’s most va luable asset , Keppel Offshore & Marine (Keppel O&M) continues to invest in its workforce and develop employees to their fullest potential.

KTED PROGRAMME GRADUATIONOn 17 November 2017, 37 employees graduated from the Keppel O&M Technology and Engineering D e v e l o p m e n t ( K T E D ) programme.

The programme, which is developed in a partnership between Keppel O&M and the Singapore University of Technology & Design (SUTD), exposes participants to a range of topics, such as sustainable engineering, virtual and augmented reality as well as big data.

As part of the programme, participants formed teams to brainstorm and present new business ideas. For example, one of the teams explored the creation of sustainable

arctic living environments on offshore p lat forms by leveraging Keppel ’s water desal ination and offshore power generation technologies, as well as the Company’s experience in developing sustainable eco-cities, offshore platforms and support vessels.

LAUNCH OF ITE WLTDKeppel O&M is amongst the pioneer batch of companies to partner the Institute of Technical Education (ITE) in the newly launched

ITE Work-Learn Technical Diplomas (WLTD), which will give ITE graduates an opportunity to upgrade their skills.

The WLTD launch signing ceremony on 13 November 2017 was witnessed by Mr Ong Ye Kung, Minister fo r Educat ion (H igher Education and Skills) and Second Minister for Defence. Four WLTD programmes, including marine & offshore engineering, will be launched in April 2018. keppelite

building up the company over the years.

“The fierce passion and strong ties among Keppelites have helped the company

grow from strength to strength. We would not be where we are today, if not for the contributions and sacrifices of pioneers like yourselves,” he shared. keppelite

46 Nurturing Communities



Picture perfectThe breathtaking beauty of the Sino-Singapore Tianjin Eco-City (Eco-City) was captured in photos in the ‘Delight in the Eco-City’ Photography Competition 2017.

Organised by the Sino-Singapore T ianj in Eco-C i t y I n v e s t m e n t a n d Development Co., Ltd., the annual competition encourages people living and working in the Eco-City to chronicle its progress and unique sustainable features in photographs.

The competition attracted

over 3,500 submissions, with the top photo capturing a pano ram i c v i ew o f

green homes surrounding the scenic Old Ji Canal (pictured below). keppelite

The winning entry ‘Floating Clouds above Old Ji Canal’ captures the tranquil beauty and green aspects of the Eco-City

Brazilian melodiesThousands of park goers enjoyed an evening of charming Brazilian music amidst the lush greenery

of the Singapore Botanic Gardens, as Brazi l and Singapore marked 50 years of diplomatic relat ions

with a special fifth edition of PianoBotanica. Held on 4 November 2017, P i a n o B o t a n i c a i s a n annual outdoor concert that celebrates friendship between the two countries.

Keppel Offshore & Marine (Keppel O&M) was once again the presenting sponsor of the classical music event. This year’s concert saw performances by Singapore’s bossa nova and jazz maestro Jeremy Monteiro, as well as guest performances by Juliana da Silva – Melissa Tham & Jazz Brasileiro.

Separately, Keppel O&M also sponsored the Keppel Latin American Film Festival, held from 7 to 10 December 2017. The festival screened 10 films from Argentina, Brazil, Colombia, Costa Rica, Chile, Cuba, Mexico, Panama, Peru and Venezuela at the National Gallery Singapore for free. Organised by the embassies in Singapore, the festival, which showcases Latin American culture, has gained a strong following over the years. keppelite

Celebrating the friendship between Brazil and Singapore at PianoBotanica were (from L-R) Mr Paul Tan, Group Controller, Keppel Corporation and CFO, Keppel Offshore & Marine; Mr Flávio Soares Damico, Brazil’s Ambassador to Singapore; and Mr Ho Tong Yen, GM of Group Corporate Communications, Keppel Corporation

Nurturing Communities 47

Keppelite I Issue 1 / 2018Keppelite I Issue 1 / 2018

Making a differenceCommitted to nurturing communities wherever we operate, Keppel Volunteers rallied to bring festive cheer to the underprivileged, both in Singapore and abroad. At the same time, the dedication and achievements of regular volunteers were recognised a t the annua l Keppe l Volunteers Appreciation Dinner.

FESTIVE GIVINGOn 28 January 2018, about 30 Keppel Land volunteers, together with another 30 students and teachers from Republic Polytechnic, rolled up their sleeves to distribute festive packs to low-income families in the Gambas neighbourhood.

The volunteers were led by Mr Ong Ye Kung, Minister for Education (Higher Education and Skills), Second Minister for Defence and Adviser to Gambas Grassroots Organisations (GROs), and Mr Loh Chin Hua, CEO of Keppel Corporation and Executive Chairman of Keppel Land.

This initiative is part of the WeCare@North West Service Weeks campaign, which Keppel Land is participating in for the second consecutive yea r. The th ree week campaign will see over 6,000 families who are residing in rental units across the 13 divisions within the North West District receive festive

packs comprising food and basic necessities.

Mr Loh said, “Keppel Land believes in doing good as we do well. We constantly seek ways to contribute meaningfully in the local and overseas communities where we operate.

“We have been working closely with North West Community Development Council to provide enriching experiences for children and families in Singapore’s North West district since 2016. Today, we are pleased to continue this collaboration to

spread cheer and celebrate the new year with the residents of the Gambas division.”

CHRISTMAS CHEERBr ing ing cheer to the u n d e r p r i v i l e g e d w e re volunteers from Keppel Land and Keppel REIT who partnered Care Corner Singapore to organise a Grant A Wish donation drive for children from needy famil ies residing in the Admiralty, Woodlands and Toa Payoh neighbourhoods.

From 27 November to 8 December 2017, wish tags

from the beneficiaries were hung on Christmas trees at four of Keppel’s commercial buildings, namely, Ocean Financial Centre, Bugis Junction Towers, Keppel Towers and Keppel Bay Tower.

Keppel staff and tenants of the buildings chipped in to fulfil the wishes written on the gift tags. The gifts were then delivered and presented to about 160 children at the Care Corner Family Service Centre (Woodlands) on 11 December 2017.

Bringing cheer to residents of rental flats during the WeCare@NorthWest Service Weeks (Gambas) were Minister Ong Ye Kung (second from left), Minister for Education (Higher Education and Skills) & Second Minister for Defence and Adviser to Gambas GROs, and Mr Loh Chin Hua (third from left), CEO of Keppel Corporation and Executive Chairman of Keppel Land. Joining them were Mr Allen Ang (second from right), GM Project Management and Sustainable Design, Keppel Land, and North West District Councillor, and Mr Ng Ooi Hooi (extreme right), President, Singapore, Keppel Land




Separately, on 28 December 2017, volunteers from Keppel Land China (Shanghai) hosted 30 children from the Shanghai Deaf Children Rehabilitation Centre for a Christmas party at 8 Park Avenue, one of Keppel Land China’s developments.

The volunteers entertained the children with well-rehearsed puppet shows and led them in a sing-along session. The evening ended on a high note when one of the volunteers surprised the children by donning a Santa Claus costume and distributed gifts to them.

I n a s e p a r a t e e v e n t , volunteers from Keppel Capital (Shanghai) brought Christmas cheer to the elderly living at Shanghai’s Hangpu Xicheng Elderly Daycare Centre. It was a meaningful day for volunteers and beneficiaries who made beaut i fu l hand-crafted Christmas decorations and gifts together.

GOING THE EXTRA MILE Volunteers from Keppel FELS rall ied to care for underprivileged households by participating in Food from the Heart’s food distribution programme on 18 November 2017.

P r a s a n n a B a l a j i Gopalakrishnan, Assistant Construct ion Manager, Production, Keppel FELS, reflected, “Based on the feedback of beneficiaries

from previous visits, we provided more nutritious items like eggs and fruits, as well as separated Halal and non-Halal food items. I am proud to be part of a team that is willing to go the extra mile.”

Separately, volunteers from Keppel FELS brought festive cheer to patients at Yishun Community Hospital on 21 December 2017, where patients and volunteers b o n d e d o v e r m a k i n g handicrafts together.

Shared Linda Ong, Volunteer Coordinator at Yishun Community Hospital, “The pat ients found today’s session enjoyable as the activities were engaging, yet simple.”

To raise funds for volunteer activities in China, Keppel L a n d C h i n a ( T i a n j i n ) organised its fourth charity bazaar at the Xin Le Hui Commercial Street in the Sino-Singapore Tianjin Eco-City. Over RMB 19,000 was raised as many of the items donated by Keppel employees were snapped up by the public.

CARING FOR THE ELDERLYVolunteers from Keppel C a p i t a l ( S h a n g h a i ) conducted a workshop at the Zhicheng Community Centre, to teach the elderly how to use smartphone apps to monitor their health and make emergency calls.

Volunteers and elderly patients bonded over making handicrafts

Volunteers equipped the elderly with the skills to use smartphone apps


Separately on 5 January 2018, volunteers from Keppel Land China (Tianjin) equipped the Hangu Social Welfare Home with more elderly-friendly safety features such as anti-slip mats and air purifiers to ensure a safer and healthier l iv ing envi ronment for e lder l y res idents . The volunteers also decorated the Home with handmade C h i n e s e N e w Ye a r decorations.

DOING GOOD AS ONEKEPPEL“Volunteering changes us; we develop empathy, cultivate a growth mindset and build authentic leadership skills. These changes can in turn create networks of people rallying for good causes, thus nurturing a caring and inclusive society,” shared Ms Melissa Kwee, CEO of the National Volunteer and Philanthropy Centre,

Nurturing Communities 49


To mark International Volunteer Day, Keppel Land launched a film that provides a glimpse into the ‘Gift of Sight’ initiative

Gift of Sight

Since 2006, over 100 employees from Keppel Land’s Spring City Golf & Lake Resort (Spring City) have been volunteering their time and resources i n r e a c h i n g o u t t o underprivileged villagers in Kunming, Yunnan, China, where hundreds of elderly villagers suffer from cataracts due to high altitudes and strong ultraviolet rays.

To help this community, K e p p e l L a n d w o r k s

quality of life. Keppel Volunteers also regularly visit the remote villages after surgeries to donate rice, cooking oil and other essential supplies.

To mark International Vo l u n t e e r D a y o n 5 December 2017, Keppel Land launched a short film which provides a glimpse into this initiative. The video may be viewed at keppellandlive.com.

who was the special guest at the Keppel Volunteers Appreciation Dinner held on 5 December 2017 at the Keppel Leadership Institute.

Ms Kwee inspired with insights on how volunteering can create a virtuous ‘City of Good’ and act ivate transformational changes in people and communities.

Themed ‘Doing Good as OneKeppel’, the annual appreciation dinner organised by Keppe l Vo luntee r s recognised over 80 regular vo luntee r s ac ros s the Group for their collective efforts in driving outreach in i t i a t i ves th roughout the year.

Tokens of appreciation were presented to Corporate Social Responsibility (CSR) teams across the Group who collaborated with Keppel Volunteers to exceed the 2017 target of 10,000 volunteer hours.

Special Volunteer of the Year awards were also presented to dedicated organisers from each CSR team, who stepped up to plan and execute volunteer events supporting the Group’s focus areas of Protecting the Environment, Empowering Lives through Education and the Arts and Caring for the Underprivileged.

Casey Chiang, Deputy Manager, Corporate Services & CSR at Keppel Land, shared on how her role as an

w i th non-gove r nment organisations such as Bless China International and the local hospitals to provide medical support like free cataract operations for underprivileged villagers in Yunnan.

In the past decade, Keppel has raised and donated approximately $500,000 (RMB 2.5 million) for this programme. More than 100 villagers have benefited from free cataract surgery and now enjoy an improved

organiser in Keppel Land’s CSR team has honed her analytical and leadership skills through seeking out causes aligned with CSR goals, matching volunteers’ diverse competencies and developing purposeful programmes with lasting impact on volunteers and beneficiaries.

Also benefiting from her experience as a participant and an organiser in the Keppel FELS CSR Committee, Design Engineer Janneth Lim enthused, “Working with team members across different functions has allowed us to come up with innovative solutions

and processes in running volunteer activities. Externally, connect ing wi th both volunteers and beneficiaries has also enabled me to gain a deeper understanding of the existing issues and how we can make a difference harnessing team efforts.” keppelite


50 Getting To Know You

Spotlight on: Christina TanIn the latest instalment of interviews with senior management, Keppelite speaks to Ms Christina Tan, CEO of Keppel Capital and MD of Alpha Investment Partners, who shares with us her views on work, life and being a ‘cool mom’.

Q: Can you share with our readers Keppel Capital’s journey since its formation in 2016?It has been an exciting and fulfilling journey for all of us at Keppel Capital. As a protector of capital and creator of value, we are constantly challenging ourse lves to meet our investors’ needs amid the volatility and uncertainty in the international economy.

N o t w i t h s t a n d i n g t h e headwinds, I think we have fulfilled our roles rather well thus far.

Last year, we successfully listed Keppel-KBS US REIT, which was oversubscribed by both institutional and retail Unitholders. Our other listed entities, Keppel REIT, Keppel DC REIT and Keppel Infrastructure Trust, have done well, achieving more

Ms Christina Tan, CEO of Keppel Capital and MD of Alpha Investment Partners, shared the joy of ukulele playing with seniors from Thye Hua Kwan Seniors Activity Centre at Keppel Capital’s staff day

than 25% in total Unitholder returns in 2017, with some even exceeding 30%.

In 2017, with support from quality institutional investors, we successfully c losed the Alpha Data Centre Fund at a total of about US$1 billion, which is double our initial target fund size. We have also been raising funds for the Alpha Asia Macro Trends

Fund III, a follow-on fund in the flagship Alpha Asia Macro Trends series, and will continue to do so this year.

Q: Who would you say is a leader who has most influenced you or whom you most look up to?O n e l e a d e r w h o m I particularly look up to is the late Mr Lee Kuan Yew. He was an exceptional leader and a true visionary

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– one who was fearless, authoritative and who held strong values. Singapore is a small country, but when he spoke, he spoke volumes and garnered much respect internationally.

Q: How do you inculcate strong values in the team? To be an organisation that can last for the next 50 or even 100 years, we need strong values that will drive a strong culture.

We have to communicate and motivate our people to embrace a common set of core values to form the foundation on which we work and conduct ourselves. At Keppel Capita l , we always remind staff and new hires that while we may have ambitious growth plans, our fiduciary duties should always be carried out with integrity, which is key in the fund management business, or any business for that matter.

I somet imes share the example of workers in the tough, metal industry who save their monies in pension plans. These are the real people and real savings behind the investors that we have. When we invest, we are indirectly helping them invest their retirement monies, and our fiduciary responsibilities require us to protect their capital and create value.

Q: How do you build an innovative culture and drive innovation in the company?I believe that all of us can be innovators and creators, if we dare to dream big, think differently and work creatively.

One o f t he way s we encourage innovativeness is through offsite meetings where staff from different countries and departments collaborate and come up with ideas for new projects and initiatives. Through platforms such as these, new ideas have arisen and we have implemented some of them successfully in our projects.

Q: On a more personal note, what is one word that describes you the best?People who know me tend to say that I am intuitive. I can read people quite well. In negotiations, being able to read body language helps me to create rapport, close discussions and win investors over.

Q: What advice would you give to working mothers on how best to balance work and family?Enjoy what you are doing. If you love what you do, not only will you not find it tiring, you will tend to give it more than 100%. I believe in living in the moment. At

work, I am very focused, and when I am at home, I concentrate on spending quality time with my family.

I am known by my children and their friends as the ‘cool mom’ at home. I am like a friend to my children and sometimes join them at events like concerts. I enjoyed the ones by One Direction and Taylor Swift. I do check on their work regularly, but I am not too bothered if they don’t do very well in tests in school. There are many avenues in life. They will just have to put in more effort and try to do better next time.

Q: Which is your favourite travel destination?My family and I love theme parks, so if I have to choose a favourite travel destination, it would be the Walt Disney World Resort in Orlando, Florida. We went there recently and the 3D ride, ‘Avatar Flight of Passage’, was exhilarating. keppelite

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two leading companies in their respective fields to deliver a world-class waste management project.

T h e E n g i n e e r i n g , P r o c u r e m e n t a n d Construction (EPC) phase will be undertaken by Zhen Hua, one of the biggest construction and reclamation companies in Hong Kong with strong civil and marine works exper ience. The EPC phase will involve the reclamation of an area of about 16 hectares and the design, engineering and construction of breakwaters as well as of the IWMF and its related port facilities on the reclaimed island.

During the EPC phase of the contract, Keppel Seghers

will provide its proprietary waste-to-energy (WTE) technology, which has been successfully deployed in over 100 WTE projects around the world, as well as WTE project implementation and execution of the mechanical treatment plant, power is land and desalination facilities.

Subsequen t l y, Keppe l Infrastructure Services will undertake the operations and maintenance (O&M) of the facility for 15 years after it is completed in 2024. For its roles in the EPC and O&M phases, KI’s share of the total contract is approximately H K D 1 1 . 3 b i l l i o n ( o r approximately $1.95 billion), with up to an additional H K D 9 . 6 b i l l i o n ( o r

approximately $1.7 billion) for escalation provisions and other contingencies.

D r O n g T i o n g G u a n , CEO of KI, said, “Keppel is honoured to be able to contribute to Hong Kong’s sustainable urbanisation through this iconic project, which reinforces Keppel’s leadership for world-class W T E t e c h n o l o g y a n d operations. We are proud that our WTE technology has been implemented around the world, building on our proven track record as a competitive and reliable waste management solution provider.”


Keppel Infrastructure (KI) and China Harbour Engineering Company Limited, through their respective subsidiaries, Keppel Seghers Hong Kong and Zhen Hua Engineering Co . L td . ( Zhen Hua ) , have secured a project to design, build and operate a n I n t e g r a t e d Wa s t e Management Facility (IWMF) off the coast of Shek Kwu Chau, which is to the south of Lantau Island, Hong Kong. The contract was awarded via a competitive international tender called by the Environmental Protection Department (EPD) of the Government of the Hong Kong Special Administrative Region.

The pro ject wi l l br ing together the strengths of

Keppel Infrastructure jointly awarded multi-billion dollar contract

The IWMF will have extensive greening that will integrate it seamlessly into its natural surroundings

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