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First jackup delivery for 2016

MCI (P) 133/02/2015

JANUARY 2016www.kepcorp.com/ekeppelite

Marking

milestones 26

Keppel ranked

on Global 100 28

Season for

giving 51

Keppelite I January 2016

32 41

Contents

CO REG NO: 196800351N

51

Cover image: Keppel FELS celebrated its first delivery of the new year, Halul, a KFELS B Class jackup rig to Gulf Drilling International Ltd. of Qatar, which has renewed options for two more repeat KFELS B Class rigs for deliveries in 2018 and 2019.

Published for people in the Keppel Group by the Group Corporate Communications Division, Keppel Corporation Limited, 1 HarbourFront Ave, #18-01 Keppel Bay Tower, Singapore 098632. Printed by Image Printers Pte Ltd, Blk 1002, Redhill Industrial Estate, Jalan Bukit Merah, #03-12, Singapore 159456.

Editorial AdvisorHo Tong Yen

EditorKevin Ho

Editorial CommitteeAng Lai Lee, Brian Higgs, Candice Low, Carol Huang, Cheryl Goh, Chew Chong Peng, Chua Sian Howe, Donald Sng, Eileen Tan, Elizabeth Widjaja, Frances Teh, Gabriela Hott Soares, Grace Chia, Guo Xiao Rong, Hayley Teo, Hoo Yao Lin, Ivana Chua, Jayne Yeo, Lee Wan Jun, Marianne Goh, Mia Liu, Priscilla Chong, Razali Maulod, Ricky Ling, Roy Tan, Say Huan Yuan, Serena Toh, Song Jia Jia, Sue Ann Huang, Tang Yi Bing, Teri Liew, Tracy Pham, Woon Pek Yong, Yolanda Guo

SUSTAINING GROWTHDelivering on our multi-business strategy 7

Remaining focused 15

Responding to challenges 19

Progressing on track 21

Delivering sustained returns 22

Steady distributions 23

Keppel DC REIT’s distribution beats forecast

Keppel Land acquires 22.4% stake in retail mall 24 112 Katong

First delivery in the New Year 25

SPECIAL FOCUSMarking milestones of environmental projects 26

Keppel ranked top Industrial Conglomerate 28 on Global 100

Share swap for Keppel Bay Tower 29

A trusted partner 30

Enhanced data solutions 31

Showcasing gas solutions 32

Preferred yard in the Middle East 33

Reliable support

At the helm 34

Logistics provider of choice

Capturing value down under 35

Deepening presence in China 36

Promoting a culture of safety 37

New developer in the Tianjin Eco-City 38

Igniting innovation

Vigilance bears fruit 39

Spurring InnovationsHook to be safe 40

EMPOWERING LIVESIndomitable spirit 41

Passing the baton 42

Distinguished service

Welcoming the New Year 43

Sound strategy 44

Appreciation to staff

Keppelites Around the WorldRelishing challenge 45

Decades of service 46

NURTURING COMMUNITIESEducational outreach 47

Warm tidings

Caring for the community 48

Bringing festive cheer 50

Sharing culinary delights

Keppel VolunteersSeason for giving 51

BACK PAGEKeppel Offshore & Marine secures contracts 52 from repeat customers

Keppelite I January 2016Keppelite I January 2016

Dear Keppelites,

New Year Message from the CEO

Continues on page 4...

In my New Year message two years ago, I challenged ourselves to make Keppel an even better company, one that would outlast all of us.

We have rallied Keppelites behind a refreshed vision and mission, a new set of operating principles, and are embarking on our next phase of growth with an ambitious 2020 plan.

As we advance into 2016, I would like to thank Keppelites for your commitment and contributions towards our common goals and vision. We are taking bold strides amidst the global economic and industry headwinds in our path, anchoring on our multi-business strategy and harnessing our collective strengths to seize opportunities and create value.

BUILDING RESILIENCEAs a Group, Keppel has performed creditably.

The storm that we are experiencing in the offshore sector shows no signs of abating. Faced with the global sector downturn, Keppel Offshore & Marine is rightsizing its operations and staying vigilant for what could be an extended winter, while at the same time building new capabilities and positioning ourselves to seize opportunities when the upturn comes.

We must fully utilise this period to

prudently invest in strategic areas and build new muscles that will propel us as THE front-runner in the upturn. As such, we have to persist in training our people, furthering R&D as well as improving our systems and productivity. Our acquisition of LETOURNEAUTM will not only broaden our suite of jackup rig designs but also give us enhanced capabilities to provide aftermarket sales and services to customers.

A strong order backlog of about $9 billion, carefully built up over time, will bolster us in the year ahead as we continue to strengthen and tone up our Offshore & Marine division. Still, we must be very sensitive to the pressures faced by our customers and work closely with them to deliver the best value proposition.

In the meantime, our other pillars are helping to steady the Group. In 2015, we completed the privatisation of Keppel Land, which is now 99.3% owned by Keppel Corporation. We created Singapore’s flagship infrastructure business trust, successfully combining Keppel Infrastructure Trust with CitySpring and injecting 51% of Keppel Merlimau Cogen into the enlarged entity. By now, the newly-launched Keppel DC REIT has completed a full year of operations.

We have successfully handed over both phases of the Greater Manchester

Energy-from-Waste Plant and are into the final stretch of substantial completion for Doha North Sewage Treatment Works. This will free us to re-channel our attention to other promising growth areas in Infrastructure.

Overall higher contributions from Property and Infrastructure in the past year have helped cushion the impact of a considerable fall in net profit from Offshore & Marine. Had we been a single business company, our results would have been much weaker.


4

...continued from page 3.

A clenched fist delivers a strong punch. In spite of the downturn, we will march forward as One Keppel.

HARNESSING STRENGTHSBeing a conglomerate, with access to capital and the ability to invest when times are tough, we must continue to capture value by riding on the Group’s unique ability to create good assets, which we can own, manage and then recycle at the right time to earn the best risk-adjusted returns.

The world is experiencing the largest wave of urban growth in history. Over half of the global population now live in towns and cities, and by 2030 this number will swell to about 5 billion. Rapid urbanisation sets the stage for our Offshore & Marine, Property, Infrastructure and Investments divisions to provide holistic and sustainable solutions to meet global needs for

energy, a clean urban environment, urban living and connectivity.

In addition to selling homes and rigs, we are also capable of creating quality assets across our business lines that can generate stable cash flows for the Group over the long term. These range from office buildings to data centres and power and waste-to-energy plants, as well as midstream assets such as FLNG vessels which may be chartered for 10 to 20 years at a time. Such assets can be created either from green or brown fields. We can then own, manage and operate the assets, stabilise and de-risk them, before monetising them.

Our fund management arms in Property and Infrastructure, with a combined AUM of $24.2 billion to date, will continue to provide a solid base for recycling capital as well as generating

stable fee-based income such as asset management fees, facilities management fees, and operations and management fees.

Our goal is to capture value at every step of the way, from the time we create an asset till even after we inject it into a trust or fund that we own.

GROWING SYNERGIESNot only should we continue to nurture these symbiotic relationships that Keppel Land, Keppel T&T and Keppel Infrastructure share with their sponsored real estate and business trusts, we must also explore new avenues for collaboration across business divisions to unleash potential synergies. As an example, Keppel Land is working closely with Keppel T&T to help build the shell and core for their new data centres. Keppel Infrastructure can sell electricity as well as provide


5

power solutions, and in the future possibly district cooling.

To realise such potential, our business units need to collaborate with one another. We want our business verticals to be strong, and the best-in-class for their respective fields. However, we can become more formidable by hunting as a pack — working together, cross-selling and leveraging one another’s strengths. Increasingly, there is also the need to co-create and collaborate with our customers, suppliers and other stakeholders to stay ahead of our game.

There is a wealth of industry knowledge and relationships residing with our business units that can be culled through collaborations. If we are able to pull together shared services to more efficiently support our businesses and connect our people across the Group, there will be new synergies and cost savings. We will also be able to improve on our controls and processes to be a best-in-class global company.

INVESTING IN THE FUTUREDoing well alone is not enough to make Keppel best-in-class, we also need to

conduct ourselves with the highest ethical standards, and create enduring, positive social impact wherever we plant our flag.

I n 2015 , Keppe l Co rpo ra t i on was conferred the Strategy and Sustainability Management Award at the Sustainable Business Awards, Singapore for its commitment to drive sustainability strategy from the top. Keppel Corporation was also listed as an index component of the Dow Jones Sustainability Indices Asia Pacific Index for the third consecutive year, and remained as a constituent of the MSCI Global Sustainability Index and the Euronext Vigeo World 120 Index.

Keppel Corporation’s inclusion in the indices, alongside established global companies leading the field in sustainability, affirms our commitment to the highest environmental, social and governance standards.

Shaping the future of our communities, we opened the Keppel Centre for Art Education at the National Gallery Singapore in November 2015. As a Founding Patron of the Gallery, we

contributed $12 million to establish the Centre, which is set to benefit some 250,000 children, youths and families a year, nurturing generations of creative and critical thinkers through art education.

Keppelites are our most important asset, and we are committed to developing you to your full potential. In the inaugural Global Employee Engagement Survey launched in 2015, over 90% of you have said that you are proud to work in Keppel. You have also given valuable suggestions on how we can make our workplace even better. I have read your inputs and assure you that we will continue to make progress.

The Keppel Group promises to provide multiple pathways to success for those who will rise to the challenge across geographies, industries and functions. In April 2015, we opened the Keppel Leadership Institute, our very own global leadership development centre to groom leaders and equip them with capabilities to drive and support the sustainable growth of our businesses. Since its


6


opening, the Institute has provided a spectrum of enriching courses and events as well as collaborative spaces for 8,200 Keppelites from Singapore and overseas.

I am heartened by your growing interest and participation in Keppel Volunteers’


community activities. We have exceeded our 2015 target of 4,800 volunteer hours. On top of the programmes that have been popular with our younger Keppelites, we hope to further engage our middle-management and senior staff in 2016 by tapping their experience and expertise for skills-based

volunteering. This initiative will not only enhance the management skills of our charities but also make every sponsored dollar go the extra mile for our beneficiaries. I hope to see your involvement in corporate volunteerism grow even further, and cut across business units and countries.

To be a t ru ly g lobal company, sustainability must become more than just a guiding principle for Keppel; we must allow it to permeate the fabric of our organisation, through strategic and operational levels, right down to the individual Keppelite. I am disappointed, that in spite of our strong safety focus, we suffered four fatalities in 2015. Incidents at our workplaces must not be tolerated. I urge you to take responsibility for your own safety and that of your co-workers to create a safe environment and ensure that everyone goes home safe.

Over our 47-year history, we have experienced and successfully navigated through periods of volatility where Keppelites have, time and again, turned adversity to opportunity. Our Can-Do spirit and agility will ensure we prevail and scale new heights.

May I wish you and all your loved ones a Happy New Year.

Yours sincerely,

Loh Chin HuaCEOKeppel Corporation


Sustaining Growth 7 Sustaining Growth 7

Delivering on our multi-business strategyDespite continued headwinds in 2015, Keppel Corporation continued to perform respectably as its multi-business strategy shines through. Mr Loh Chin Hua, CEO of Keppel Corporation, shared the Group’s performance and highlights at a media and analyst briefing on 21 January 2016. Keppelite reproduces his speech.

Mr Loh Chin Hua, CEO of Keppel Corporation, presented the Group’s performance highlights for FY 2015 at a media and analyst briefing held at the Keppel Leadership Institute

CHALLENGING ENVIRONMENTThe macro environment has taken a turn for the worse. Oil price plunging below US$30 a barrel, its lowest in more than a decade, coupled with the Chinese stock market meltdown this month have hurled

the global economy onto a turbulent trajectory.

Recovery in major economies has been uneven. The US Federal Reserve’s move to tighten monetary policy, even as others are loosening theirs, seemed to have come at a precarious time.

rate of 6.9%, China’s absolute growth is still very significant based on a larger US$10 trillion economy, compared with five or ten years ago.

Meanwhile, anxieties over slower growth in China and its stock market volatility have prompted investors to retreat from the country. While the Chinese economy faces a number of challenges, we remain confident about opportunities in China. Even at a lower GDP growth Continues on page 8...

8 Sustaining Growth


M o r e o v e r , d e s p i t e frequent media reports of an oversupplied property market, our own experience has been positive. Home sales have picked up in several cities in China since the second half of last year. Sales in China contributed to 72% of Keppel Land’s total residential sales volume in 2015, or 3,280 homes, as compared to some 1,900 units in 2014.

In Brazil, confidence has been shaken by a series of crises over the past year as political and economic woes and the Lava Jato scandal continue to spiral. Recent media reports of Sete Brasil (Sete) mulling over bankruptcy protection have incited further market selldowns.

Keppe l , be ing one o f the ear l ies t S ingapore companies to enter the Brazilian market, has not been spared from this storm. We had taken steps to mitigate our exposure by slowing the construction of Sete’s rigs after payments from our customer ceased over a year ago.

On average, the construction of the first four semis has progressed by less than 4% each quarter since the start of 2015. It is worth noting that of these six projects, only the first two semis, which are also in the most advanced stages, have been sent to our yard in Brazil. Meanwhile, minimal work

had been done on the last two semis.

Prior to the disruption of milestone payments, we had already received about US$1.3 billion from Sete. As we await further clarity on the situation, we have stopped construction of Sete’s projects by the end of 2015. We have also made a provision of about $230 mil l ion for these projects in 4Q 2015, after assessing our construction progress, payment status and amounts due to our vendors amongst other areas.

We understand that Sete’s board will soon be meeting to discuss future plans for the company. It remains unclear when a final decision will be taken. Until we hear from Sete officially and the situation and options available to us become clearer, the above measures, in our opinion, are sound and adequate.

PERFORMANCE HIGHLIGHTS Against this challenging and volatile environment, Keppel Corporat ion cont inued to perform respectably, anchored by our multi-business strategy.

For the whole of 2015, we achieved a net profit of about $1.53 bil l ion, albeit down 19% from $1.89 billion in 2014. Higher contributions from Property and Investments were offset by lower profits from

Offshore & Marine (O&M) and Infrastructure, which included the provisions for the Sete projects and Doha North Sewage Treatment Works, as well as lower income from the power and gas business and the absence of gains from data centre assets divested in 2014 to Keppel DC REIT.

The Group gene ra ted positive Economic Value Added of $648 million in 2015. Our Return on Equity (ROE) held up well at 14.2% as compared to 18.8% a year ago.

Considering the Group’s performance as well as the Company’s needs for future growth, the Board of Directors will be proposing a final dividend of 22.0 cents per share. Together with the interim cash dividend of 12.0 cents per share distributed last August, we will be paying out a total cash dividend of 34.0 cents per share to shareholders for 2015.

Offshore & MarineThe continuing mismatch between global glut and sluggish demand is expected to keep oil prices subdued in the near future. Industry reports suggest that global exploration and production spending could decline by 15% or more in 2016 should oil prices remain at current levels.

However, oil companies are kicking the can down the

road and at some point, they would have to spend to replenish reserves. The low oil prices we see today are not sustainable in the long run. How soon the new equilibrium will be reached remains to be seen. We have to plan for a longer winter.

We had kick started 2015 with expected deliveries of 15 drilling jackups; eight of these have since been pushed into 2016. These projects include five rigs for Grupo R, and one each for Parden Holdings, FTS Derricks and Perforadora Central. The delays are not extensive, the contracts are still valid, and we are working towards delivering several of them in the early half of this year.

In addition to handing over seven quality jackups in 2015, Keppel O&M also delivered several non-drilling solutions to our customers throughout the year. These i n c l uded a Dep l e t i on Compression Platform to Shell Philippines Exploration, an accommodation semi to Floatel International and the FPSO Turritella to SBM Offshore, among other special ised vessels and equipment.

Prudence in pursuing quality p ro jec t s , underp inned by strong execution and productivity, enabled us to achieve an underlying operating margin of 17.1% for 4Q 2015 and 13.4%



Sustaining Growth 9

for FY 2015, before making the provision on the Sete projects.

Of our current $9.0 billion net orderbook, non-drilling solutions make up more than a third, while jackup rig contracts under the deferred payment terms constitute less than 16.7% or under $1.5 billion.

In 2016, our yards will be delivering some 25 newbuild and conversion projects.

Our orderbook comprises contracts backed by quality cus tomers , as we l l as sound pricing and terms that will allow us to make respectable, risk-adjusted returns. While we do not expect cancellation risks to be great, we are vigilant and mindful to deliver projects to our customers’ satisfaction.

I am pleased to share that we delivered our first jackup of the year to Gulf Drilling Internat iona l (GDI ) on 21 January 2016. We also delivered a liftboat to Nakilat Offshore & Marine in Qatar earlier this month, which will serve GDI as well.

We closed 2015 clinching $132 mi l l ion worth of cont racts f rom repeat customers for conversion projects and offshore support vessels, bringing our total orders secured in 2015 to about $1.8 billion.

With our extensive suite of offshore and marine solutions and continuous investment in Research & Development, Keppel O&M is able to serve a wide spectrum of customers in both drilling and non-drilling markets, who continue to require various solutions, may it be for oil production, subsea construction, or offshore liquefaction.

Our yards will remain busy for the rest of this year, with the execution of both existing and new projects from our backlog. In addition to a growing base of non-drilling solutions, we are also taking on opportunistic work such as modifications, upgrading and repai rs that wi l l occupy us as Keppel O&M hunkers down.

Continues on page 10...Keppel Offshore & Marine delivered several non-drilling solutions to its customers throughout the year, including the FPSO Turritella (pictured) to SBM Offshore

Keppel’s Offshore & Marine division handed over seven jackup rigs to clients in 2015, including UMW Naga 8 (pictured)

10 Sustaining Growth



The storm hitting the offshore and marine business is not one which we are unfamiliar. Keppel had braved through many cycles, emerging stronger and more resilient each time.

Bracing ourselves for a possibly long winter, we need to ensure that our overheads are well under control and that we are ready if the market conditions get tougher. We are preparing ourse lves to meet the near term challenges by rightsizing our operations and resources.

We have cons iderab le flexibility in our workforce dep loymen t w i th ou r cont rac t worke r s and our network of yards in Singapore and overseas. Optimising our operations and al lowing a natural attrition of the workforce, direct staff strength in our Singapore and overseas yards has come down by about 17% or about 6,000 headcount since January 2015, while our Singapore subcontract workforce has been brought down by 24% or about 7,900 headcount over the same period.

We have also redeployed manpower to our operations o v e r s e a s , a s w e l l a s from offshore to marine operations, for example, Keppel Shipyard, where increased resources are needed for the steady stream of repair and conversion projects.

signalled the government’s strong support for the sector. Given real estate’s status as a pillar industry, the Chinese government will be committed to maintain stable and sustainable growth in the property market over the long term.

Vietnam, being our second largest overseas residential market after China, has recovered after almost five years of housing slump. With the country’s strong GDP growth, growing middle class and low interest rate, the residential market is expected to continue its upward momentum.

Keppel Land continues to recycle capital from its property assets in line with the Group’s focus on higher returns. In 2015, it sold BG Junction in Surabaya and will be pursuing more divestment opportunities in the year ahead.

Seizing opportunities in promising cities around the world, Keppel Land invested some $615 million to strengthen its portfolio with a residential site in West Jakarta, an office building in London, and a joint venture for prime residential development in Chengdu with China Vanke.

In Singapore, the share swap w i th Map l e t ree allowed the Keppel Group to increase its interest in Keppel Bay Tower from 70% to 100%, consolidating

Even as we work at reducing costs and optimising current operations, we are sti l l investing prudently in R&D as well as improving on our productivity and core competenc ie s . Dur ing the year, we inked an agreement to acquire the LETOURNEAUTM rig designs and aftermarket business to broaden our suite of jackup rig design solutions and better support our customers through aftermarket sales and serv ices. We have also expanded our natural gas solutions suite with technology for both onshore and offshore liquefaction and LNG transportation.

The present downturn presents the opportunity to build a long-term sustainable, competitive position for Keppel O&M as we carefully position ourselves for the upturn.

PropertyKeppel has been in property for the past 30 years. We know this business very well and have built up a strong track record and brand name in Asia. Amongst Asia’s leading property developers, Keppel Land’s ROE is one of the highest at 18.9% per annum over ten years from 2006 to 2015.

The privatisation of Keppel Land was a strategic move that has fully aligned the interests of our Property Division with the Group, and is providing a strong pillar for earnings and long-term value creation.

The Property Divis ion’s increased contr ibut ion at 46% of the Group’s net profit in 2015 speaks volumes of the timeliness and strategic significance of this transaction.

Our corporate structure has been simplified. The full ownership of this Division gives us the abi l i ty to rightsize the balance sheet of the property business in response to opportunities, re c y c l i ng c ap i t a l and allocating resources across the Group for opt imal returns to deliver on our multi-business strategy.

Despite headwinds, 2015 was a stronger year for our Property Division as Keppel Land sold about 4,570 homes, double the units taken up in 2014. About 72% of these were sold in China and another 20% in Vietnam. The two key markets of Keppel Land continue to be supported by healthy d e m a n d - a n d - s u p p l y dynamics and strong growth. Property prices in China’s first-tier cities continue to rise strongly with high absorption rate and falling stock. High-growth cities including Tianjin, Wuxi and Chengdu are also seeing balanced demand-supply with stable price and stock.

China’s continued easing monetary measures have improved market sentiments and housing demand, and


Sustaining Growth 11

our full ownership of the building.

Over the next two years, Keppel Land will continue to tap on demand in recovering property markets across Asia with about 20,000 launch-ready homes in its portfolio, mostly in China.

In parallel, Keppel Land is actively developing its portfolio of commercial p rope r t i e s wh i ch ha s increased to about 840,000 square metres of gross floor area. Some of them will come on stream over the

Keppel Land sold about 4,570 homes in 2015, almost double the units from the previous year

next two years, allowing us to attract quality tenants for steady income streams. I am pleased to share that Saigon Centre Phase 2 retail mall in Ho Chi Minh City, whose anchor tenant is the much anticipated Takashimaya Department Store, has achieved pre-commitment of 97.5% and will open in 3Q this year.

In Myanmar, the new 29-storey Inya Wing was opened, adding another 431 guest rooms and suites, as well as an exclusive

retail gallery to the quality offerings of Hotel Sedona Yangon.

The la tes t commerc ia l property Keppel Land has added to its portfolio is 112 Katong in which it has recently acquired a 22.4% interest. The remainder interest is held by the Alpha Asia Macro Trends Fund, a fund managed by Alpha Investment Partners. Keppel Land Retail Management has also been appointed as the retail manager and will be working closely with the owners to implement the

asset repositioning plans for the property. Here is a fine example of how the different businesses in our property vertical can work together to extract value from various aspects of asset ownership, management and operations.

To t a l a s s e t s u n d e r management by Keppel REIT and Alpha Investment Partners have increased 10% from $18.7 billion as at end 2014 to $20.5 billion as at end 2015.




Over the year, Keppel REIT completed its acquisition of three prime retail units at 8 Exhibition Street in Melbourne. Keppel REIT announced last week that it has divested its 100% interest in 77 King Street in Sydney, Australia, for A$160 million, resulting in a gain of approximately A$28 million. Its portfolio o f o ff i ce bu i ld ings in Singapore and Australia cont inues to mainta in a h i g h o c c u p a n c y o f 99.3%.

Alpha’s Asia Macro Trends Fund II has invested in three prime office properties with City Development. With the success of the first two Asia Macro Trends Funds, it will be embarking on its third such fund.

Our fund management businesses will continue to feature strongly in the Group’s capital recycling s t r a t egy f o r ma tu red projects, while providing stable income streams over the longer term.

InfrastructureAfter several challenging years under the weight o f t h e E P C p ro j e c t s , 2016 opens a new chapter fo r our In f ras t ruc ture business.

Just last week, we shared the good news that Keppel S eghe r s comp l e t ed a substantial handover of the Doha North Sewage Treatment Works (DNSTW)

in Qatar to the client on 10 December 2015.

In addition, Keppel Seghers h a s c o m m e n c e d t h e operations and maintenance phase of the contract for its liquids stream, solids thickening and dewatering facilities for 10 years.

In Poland, Keppel Seghers handed over, on schedule and on budget, the Bialystok waste-to-energy combined heat and power (WTE CHP) project in Poland to the client, Bialystok’s municipal solid waste management company on 31 December 2015.

Our team can now focus o n b u i l d i n g K e p p e l Infrastructure into a stable contributor to the Group’s bot tom l ine , pursu ing growth opportunities in key areas such as gas-to-

power and waste-to-energy both in Singapore and overseas.

During the year, Keppel Inf rast ructure in jected 51% of Keppel Merlimau Cogen (KMC), which owns the 1 ,300-MW power plant on Jurong Island, into the enlarged Keppel Infrastructure Trust, as part of its efforts to unlock value from matured assets in its portfolio.

Our data centre and logistics businesses under Keppel Te lecommunicat ions & Transportation (Keppel T&T) continue to make good progress.

During the year, Keppel T&T embarked on its fourth data centre development in Singapore. Meanwhile, the T27 data centre in Tampines, which is more than 80%

occupied, is on track for injection into Keppel DC REIT. In October, Keppel T&T opened Almere Data Centre 2, its first greenfield data centre in Europe. In Logistics, Keppel T&T commenced operations at its Tampines Logistics Hub in Singapore and a distribution centre in Vietnam.

Keppel DC REIT, Asia’s first data centre REIT to be listed on the Singapore Exchange, has successfully crossed its first year of operations.

During the year, it acquired Intellicentre 2 in Australia a n d m a i n C u b e s D a t a Centre in Germany, adding to its portfolio of high-quality data centres across Asia-Pacific and Europe, a m o u n t i n g t o o v e r $1 billion of assets under management.


Keppel Seghers handed over, on schedule and on budget, the Bialystok Waste-to-Energy combined heat and power project in Poland (pictured) to the client



We a re c o n f i d e n t o f developing Keppel DC REIT into a strategic contributor to the Group just as how we have grown Keppel REIT in the Property Division into one of Singapore’s largest listed real estate investment trusts.

Another major milestone was the combination of Keppe l I n f r a s t r u c tu re Tru s t w i th C i t ySp r i ng Infrastructure Trust. The enlarged Trust, with the i n c l u s i o n o f K M C , i s Singapore’s largest listed infrastructure business trust with total assets of over $4 billion.

By remaining as sponsor, K e p p e l c o n t i n u e s t o participate in the growth of its infrastructure fund management units, whilst building up a solid platform for the Group to recycle its capital.

Our concerted efforts to reshape and strengthen the Infrastructure Division as a sturdy third pillar for the Group are bearing fruit and we will continue to nurture the business and invest prudently for growth. InvestmentsIn the Investments Division, higher profits for 2015

were unde rp inned by better performance by M1 and KrisEnergy, which achieved first oil at two of its offshore fields in the gulf of Thailand during the year.

In addition, our share of gains from k1 Venture’s disposal of its US childcare business and the sale of equities in our portfolio contributed to the division’s stronger performance.

DELIVERING ON OUR MULTI-BUSINESS STRATEGYI want to emphasise that Keppel continues to be a

very profitable enterprise. In spite of strong headwinds, we reaped over $1.53 billion in profits. The Group’s pe r fo rmance i n 2015 demonstrates how a multi-business strategy can steady the ship in rough waters.

Overall higher contributions from the Property and Investments divisions in the past year have helped cushion the impact of Offshore & Marine’s fall in earnings. Had we been a single business company, our results would have been much weaker.

Notwithstanding the vast challenges, Keppel O&M is still doing well, and has contributed $481 million or one third of the Group’s income for the year.

From an ROE perspective, Keppel O&M’s performance has been solid owing to its rigour in selecting contracts, strong project execution and discipline in not overinvesting in capacity, considering the cyclical nature of this business.

The same discipline also applies at Keppel Land which has been generating ROE in the high teens over the past decade. The company’s privatisation has resulted in $252 million of additional contributions to Keppel Corporation after

Keppel Logistics commenced operations at its Tampines Logistics Hub (pictured) in Singapore




taking in the interest cost of $15 million.

With the privatisation of Keppel Land, the launch of Keppel DC REIT and the expansion of Keppel Infrastructure Trust in the past year, we will continue to focus on asset turns and capital recycling to improve returns f rom both the Property and Infrastructure divisions. With these gears in motion, our ROE may be sustained in the mid-teens without excessive leverage, as we steer Keppel into its next phase of growth.

Meanwhile, to ride out the interim turbulence, we are keeping a watchful eye on our gearing and cash flow. We will continue to stay

close to our customers, and focus on execution whilst rightsizing the organisation so that we can remain profitable even with a lower top line. Recurring income, which currently represents about 27% of the Group’s earnings, is another area that we will continue to strengthen.

BUILDING SUSTAINABLE VALUE As a conglomerate, with access to capital and the ability to invest when times are tough, we will continue riding on the mega trend of sustainable urbanisation, fully exploiting the Group’s ab i l i t y to c reate good assets, which we can own, manage and then recycle at the right time to earn


the bes t r i sk -ad jus ted returns.

There will be fees that we can continue to earn along the way, such as for asset management, operations and maintenance, and fac i l i t ies and property management, all of which will build resilience into our bottom line.

As we continue to fortify our core competencies, investing in our people and technology, we will also develop new muscles, o rgan ica l l y as we l l as t h rough merge r s and acquisitions.

Till now, the market has yet to fully recognise Keppel’s merits as a conglomerate

with a set of unique strengths and potential synergies that can be harnessed through cross-pollination of its business units. Such s yne rg i e s a re a l ready starting to emerge through collaborations between Keppel T&T and Keppel Land in the development of data centres, as well as Keppel Land and M1’s partnership to offer smart living solutions at our properties.

Indeed, Keppel’s diverse businesses shall become even more formidable by hunting as a pack. It is in this manner that we will continue to draw synergies and capture value from all parts of the Group, at every step of the way. keppelite

Keppel will continue to fortify its core competencies, and invest in its people and technology, so as to develop new muscles and ready itself for the upturn



S$m 4Q 2015 4Q 2014 % Change FY 2015 FY 2014 % Change

Revenue 2,479 3,925 (37) 10,296 13,283 (22)

Operating Profit 331 926 (64) 1,514 2,373 (36)

Profit before Tax 574 1,162 (51) 1,997 2,889 (31)

Net Profit 405 726 (44) 1,525 1,885 (19)

EPS (cents) 22.3 39.9 (44) 84.0 103.8 (19)

FINANCIAL HIGHLIGHTS

Remaining focusedKeppelite reproduces excerpts of the speech delivered by Mr Chan Hon Chew, CFO of Keppel Corporation, at the Group’s 4Q & FY 2015 results webcast.

The Group recorded a net profit of $405 million this quarter, which was 44% below the same quarter in 2014. Earnings per share ( EPS ) co r re spond ing l y decreased by 44% to 22.3 cents, while Economic Value Added (EVA) was lower at $192 million.

The Group’s results for the quarter were negatively impacted by the provision for losses of about $230 million for Sete Brasil rig building contracts, and positively impacted by revaluation gains f rom investment properties.

4Q 2015 FINANCIAL HIGHLIGHTS The Group’s revenue for 4Q was 37% or $1.45 billion lower than the same quarter last year. Lower revenues were recorded by all divisions. O p e r a t i n g p r o f i t a t $331 million decreased by 64% or $595 million from 4Q 2014. Lower profits from Offshore & Marine (O&M), Infrastructure and Property divis ions were part ial ly offset by higher profits from Investments.

After tax and non-controlling interests, the drop in net profit was at a lower rate


Mr Chan Hon Chew, CFO of Keppel Corporation, presented the Group’s financial performance for FY 2015, and shared on business outlook with press and analysts at a results briefing on 21 January 2016



35

312

751

357 339 360

384

521

347 406 397

406

346

457 414363

844

619

685 726

405

Net profit (S$m)

1Q:

Net Profit & EPS

17.6

41.9

19.8 18.7 19.8

21.6

29.1

19.2 22.3 21.9

22.8

19.3

25.3 22.9 20.0

47.4

34.5

38.0 39.9

22.3

EPS (Cents)

109.4

124.81,946

2,237

4Q:

3Q:

2Q:

1Q: 1Q:

2Q:

1,846102.3

3Q:

4Q:

1,885103.8

4Q:

1Q:

2Q:

1,525

2Q

84.0

3Q: 3Q:

4Q:

In f ras t ructure d iv i s ion r e p o r t e d a 7 9 % o r $240 million decrease in pre-tax earnings from the same period last year, largely driven by reduced contribution from the power and gas business, and the absence of gain from divestments compared to the gain from the sale of data centre assets to Keppe l DC RE IT upon its listing on the SGX in 4Q 2014.

After tax and non-controlling interests, the Group’s net profit decreased at a lower rate of 44% or $321 million to $405 million.

Net profit of the Property division registered an increase

of 44% or $321 million, as a result of lower non-controlling interests due to the acquisition of additional shareholding in Keppel Land. Correspondingly, EPS decreased by 44%.

SEGMENTAL REVIEWAt the Group level, revenue was 37% lower than 4Q 2014, driven largely by the decline in the O&M division as a result of lower volume of work and deferment of some projects.

Property recorded a decrease of 18% in revenue, primarily due to lower revenues from residential projects in China such as 8 Park Avenue in Shanghai and The Luxurie

in Singapore, as well as the absence of revenue from the sale of a residential development in Jeddah, which was sold in 4Q 2014.Infrastructure’s 31% drop in revenue was mainly due to lower revenue from sale of electricity as a result of lower prices and volume, lower revenue from the EPC projects, as well as the absence of revenue from Keppel FMO, which was divested in 4Q 2015.

T h e G r o u p r e c o r d e d $574 million of pre-tax profit for the quarter, 51% or $588 million lower than last year.

This is mainly driven by

the 94% or $336 million decrease in O&M division’s pre-tax profit due to lower revenues and provision for losses of about $230 million for the Sete Brasil rig building contracts.

Pre-tax profit for the Property division declined by 16% due to lower contribution from residential projects in China and absence of gain from disposal of investment properties compared to the gain from sale of one-third interest in Marina Bay Financial Centre (MBFC) Tower 3 in 2014, partly offset by cost write-back upon finalisation of project cost for the Reflections at Keppel Bay.




36

29.1%25.3%

27.2% 26.4%

19.5% 18.8%

14.2%

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

13.6 14.5 17.0 18.010.0 12.0 12.0

34.6 38.2 43.0 45.0 40.048.0

34.0

Interim Dividend Full-Year DividendROE

ROE & Dividend

Plus

Dividend in specie ~20.9cts/sharePlus

Dividend in specie ~28.6cts/share

Dividend in specie ~9.5cts/share

Plus

of 41% or $107 million in 4Q 2015, desp i te the decrease in pre-tax profit. This is due to lower non-controlling interests following the Group’s acquisition of additional shareholdings in Keppel Land.

FY 2015 FINANCIAL PERFORMANCENet profit for FY 2015 was $1.53 billion, down 19% from 2014. EPS also decreased by the same extent to 84.0 cents. This translates to an ROE of 14.2%, down from 18.8% last year, and EVA also lower at $648 million.

F ree ca sh ou t f l ow o f $694 million is due to higher

working capital requirements for the O&M division. In 2014, cash inflow included the proceeds from the sale of Equity Plaza and the divestment of data centre assets to Keppel DC REIT.

Our net gearing increased to 53% this year from 11% in 2014, due mainly to funds used for the acquisition of additional shareholding in Keppel Land and higher working capital requirements for the O&M division, partially offset by proceeds from the disposal of 51% of the Keppel Merlimau Cogen plant this year. To put the increase in perspective, the $3 billion used to privatise

Keppel Land contributed 25 percentage points to the increase in net gearing.

Revenue for the Group d e c l i n e d b y 2 2 % o r $ 2 . 9 9 b i l l i o n t o $10.3 billion, largely due to lower revenue from the O&M and Infrastructure divisions.

T h e G r o u p r e c o r d e d a decrease of 36% or $859 million in operating profit in 2015 as compared to 2014. The decrease is led by lower revenues from O&M and Infrastructure divisions, provision for losses of about $230 million for Sete Brasil rig building contracts as well as losses following

finalisation of the cost to complete the Doha North Sewage Treatment Works. This was partially offset by revaluation gains from investment properties, and the gains from divestment of Keppel Merlimau Cogen and the combination of Keppel Infrastructure Trust and CitySpring Infrastructure Trust.

Net profit after tax and non-controlling interests in 2015 was lower by a smaller extent of 19% or $360 million as a result of lower tax expenses and reduced non-controlling interests in Keppel Land.




SEGMENTAL REVIEWThe Group earned total revenues of $10.3 billion in 2015, a drop of 22% as compared to the same period last year. The decrease was mainly driven by lower revenues from O&M and Infrastructure, partially offset by higher revenues from Property and Investments.

In the O&M division, major jobs completed during the year include seven jack-up rigs, an accommodation semi, one FPSO conversion, one FPSO integration, and three ice-c lass vessels . Overall volume of work was lower, and coupled with the deferral of some projects, revenue from the O&M division fell by 27%.

Property recorded an increase in revenue of $197 million or 11% as compared to 2014, led by higher revenue from residential projects in China. A total of 4,570 homes were sold in 2015, about double that of 2014. 72% of these sales were from projects in China.

Inf ras t ructure revenue decreased by $876 million or 30% in 2015, mainly driven by lower revenue from power generation business and the absence of revenue from Keppel FMO, which was disposed in the fourth quarter of 2014.

Lower revenues and the provision for losses from Sete Brasil rig building contracts led to a 49% decrease in

O&M pre-tax profit for 2015. The operating profit margin before the provision was 13.4%, compared to 14.3% last year. The division also recorded lower net interest income, but contributions from associated companies were higher.

Despite higher revenues, the Property division’s pre-tax profit was lower by 12% in 2015, mainly driven by lower profits from residential projects and the absence of gains from disposal of investment properties. In the previous year, the division registered gains from the disposal of MBFC Tower 3, Equity Plaza and a residential development in Jeddah.

The Infrastructure division registered a decrease of 43% in pre-tax profit, largely due to losses recognised for the Doha North Sewage Treatment Works upon final isation of the cost to comple te , reduced contribution from the power and gas business and absence of prior year’s gain from sale of data centre assets. This decrease was partially offset by gains from divestment of Keppel Merlimau Cogen and the combination of Keppel Infrastructure Trust and CitySpring Infrastructure Trust. The division also b e n e f i t e d f r o m t h e divestment gain arising from the sale of data centre assets to Keppel DC REIT in 2014.

Overal l , Group pre-tax profit decreased by 31% or

$892 million to $2.0 billion in FY 2015.

The overall net profit after tax and non-controlling interests decreased by a smaller extent of 19% or $360 million from 2014, as compared to the 31% decrease in pre-tax profit. The decrease in net profit in the O&M and Infrastructure divisions was partially offset by increases in net profit in the Property and Investments divisions. This was mainly due to lower tax expenses and non-controlling interests in Keppel Land.

ROE decreased to 14.2% in 2015 from 18.8% last year. Our proposed final dividend to our shareholders for 2015 will be 22 cents per share. Including the interim dividend paid, the total distribution for 2015 will be 34 cents per share.

FREE CASH FLOWThe Group gene ra ted $1.36 billion of cash flow from operations for FY 2015.

After accounting for working capital requirements mainly from the O&M and Property divisions, partially offset by proceeds from sale of investments, operat ing cash outflow for 2015 was $705 million, compared to an inflow of $5 million in 2014.

Net cash from investing act iv i t ies amounted to $11 mil l ion compris ing investments and operational

c a p i t a l e x p e n d i t u r e amounting to $357 million, main ly f rom the O&M division, partially offset by divestment and dividend income from associated companies of $368 million.

The resultant cash outflow was $694 million for 2015, compared to the inflow of $729 million in 2014. In the previous year, the Group’s free cash flow benefited from proceeds from the sale of investment properties including Equity Plaza and data centre assets.

We would like to reiterate that we exclude expansionary acquisitions and capex, and major divestments in our free cash flow statement. For instance, the cash inflow of $952 million from the divestment of the 51% interest in Keppel Merlimau Cogen during the second quarter in 2015 is excluded from the calculation of free cash flow.

OUTLOOKThe Group remains focused on harness ing i ts core strengths and competencies to build resilience in an uncertain macro environment via our robust multi-business strategy.

We are confident that in the long run, our discipline and emphasis on excellence in productivity and innovation wi l l he lp us fu l f i l our commitment for sustainable growth and value for our customers and shareholders. keppelite




Responding to challengesKeppelite shares highlights of the 4Q & FY 2015 results Question and Answer session, where senior management addressed issues and concerns of the financial community.

Q: If we were to assume a worst case basis that Sete Brasil goes into bankruptcy, what kind of write-downs or impairments should investors expect? CHC: The situation has been quite fluid, with a lot of talk and speculation. If indeed there are legal proceedings, the process will not be so straightforward and it will take some time. We will have to look at the developments as they unfold to monitor the situation and make an assessment.

LCH: Sete Brasil is still our customer. Of course, they are going through a difficult period at this point in time. In our assessment, we’ve taken into account different scenarios. This provision of $230 million is what we believe to be adequate and the right thing to do at this point.

Q: With payout ratios now at 40%, can you give us some insights on what is a sustainable dividend payout ratio going forward? LCH: When things are good, we want to share with our stakeholders. We have

always said that we would pay around 40% to 50%, but key to that is making sure that dividends are sustainable. This is a level we believe to be sustainable, while keeping our balance sheet strong.

Q: You’ve highlighted some of the measures that you have taken to rightsize the operations in a challenging environment. What are some further steps that you can potentially take if the market were to continue deteriorating? LCH: Decisive steps have been taken in 2015 to rightsize. We are watching the situation closely and have developed plans and trigger-points, such that if the workflow continues to drop, we are ready with plans in place.

Q: Could you please explain what you mean by “natural attrition rate”? CYY: We have a labour st ructure in S ingapore where we have a lot of NTS workers, and we also have people who are retiring.We have engaged some of the NTS workers, those

on contracts and work permits, for a long time. This is because the longer they work with us, the longer they understand our safety culture and emphasis on productivity. Some of these workers actually want to go back home after working with us for six, eight or ten years. So when they want to go back – these are the people that we do not replace. That is what we mean by natural attrition.

Q: At the 3Q results, you mentioned that you were expecting to deliver six jackups in 4Q, but it seems like only one was eventually delivered. Can you give some colour on the discussion with your customers on deferrals and the scope for further deferment?CYY: Technically, all of the four rigs have been accepted by our customers. There is no performance or execution risk on our part. We have been working very closely with our customers and sometimes it is important for us to let our customers have some time to conclude their contracts. This is precisely what we are doing.

Q: I notice there is declining cash on hand on the balance sheet for the past three quarters. Can you clarify if there will be any cash flow problems in the coming quarters? CHC: The biggest cash outflow in 2015 was for the privatisation of Keppel Land. For the rest of 2015, we had working capital requirements coming from the Offshore and Marine and Property Divisions.

Going forward, we wil l watch our cash flow very closely, but having said that, we do not have any cash flow problems. Our gearing at 53% is at a very healthy level. While we do not have a gearing target, we have always operated based on the principle of maintaining an inst i tut ional-qual i ty balance sheet.

Q: You mentioned that you will look for opportunities for mergers and acquisitions (M&A). What sort of inorganic growth opportunities are you looking at? Will it




include the possibility of an acquisition of a competitor in Singapore? LCH: M&A covers the whole spectrum. We do have a multi-business approach, so it’s not just Offshore and Mar ine . We have Property and Infrastructure bus inesses. Of course, we believe very strongly in growing organical ly. However, when there are dislocations in the market, there could be opportunities that come up across the board. There are always things that we look at. What you’ve asked is speculative at this point in time.

Q: What opportunities does Keppel see in the LNG space? How are you positioning for growth in that space?LCH: We are already a very major player in that market in terms of building, re-gas, Floating Storage Regasification Units and Floating liquefied natural gas (FLNG). These are solutions that would be important in the value chain.

OTG: The lowering of oil prices also presents an opportunity for the gas-to-power business because we are buyer of energy, pipe gas or LNG. In Singapore, we take about just over a million tonnes of LNG equivalent a year, so when the market presents an opportunity for us to enter into long-term

contract purchases for LNG, we will do so.

Q: May we know the target number of units to be sold in your 2016 forecast and are there any particular cities that Keppel will focus relatively more in terms of marketing of the properties?AWG: We hope to sell as many units as possible at a good price. But certainly, we are looking towards selling more than we have sold last year. For China, we will continue to focus on our five key cities in China – Shanghai, Beijing, Wuxi, Tianjin and Chengdu. For Vietnam, our focus would be in Ho Chi Minh City. The Vietnam market has turned around very rapidly and we will be capitalising on the market upswing to

launch more projects going forward.

Q: With regard to Keppel Land’s 22.4% stake in 112 Katong lifestyle mall in collaboration with Alpha, may we know if this is the beginning where Keppel would put its balance sheet behind future property projects initiated by Alpha?AWG: Actually, this is not the beginning because it is not the first collaboration. When A lpha f inds an interesting project and it’s an opportunity for Keppel Land to invest, we wil l evaluate it independently. If it’s a good investment, we wi l l come into the project, from the strategic standpoint to support Alpha as well as from the financial standpoint to earn a good return from the project. keppelite

LCH – Mr Loh Chin Hua,

CEO of Keppel Corporation

CHC – Mr Chan Hon Chew,

CFO of Keppel Corporation

CYY – Mr Chow Yew Yuen,

CEO of Keppel Offshore &

Marine

OTG – Dr Ong Tiong Guan,

CEO of Keppel Infrastructure

AWG – Mr Ang Wee Gee,

CEO of Keppel Land

Keppel senior management engaged media and analysts at the FY 2015 results briefing




Progressing on trackFollowing the divestment of its data centre assets and successful listing of Keppel DC REIT in 2014, Keppel Telecommunications & Transportation (Keppel T&T) reported on 19 January 2016, an FY 2015 revenue of $200.6 million and net profit of $91.5 million.

Excluding the divestment gains that contr ibuted $186.4 million to the Group’s 2014 net profit attributable t o sha reho lde r s , t h i s translates to a year-on-year increase of $31.3 million. Keppel T&T’s earnings per share was 16.5 cents while net asset value per ordinary share increased 2% to $1.30

per share. Directors declared a final dividend of 3.5 cents per share.

Operating profit in the fourth quarter and full year was higher by $23.4 million and $13.8 million at $35.8 million and $54.2 million respectively due largely to fair value gains on investment properties and distributions received from other investments, partly offset by impairment losses and lower contribution from the Logistics and Data Centre Divisions.

Looking ahead, Keppel T&T’s logistics division is expected to face downward pressure from its China ports given

Keppel T&T continued to make good progress on its Tianjin Eco-city distribution centre and Lu’an food logistics park while improving occupancy at its warehouse facilities such as Tampines Logistics Hub (pictured)

the slowdown in import and export activities in the markets it operates in. Cargo throughput was encouraging at Sanshui Port but were lower at Wuhu Sanshan Port and Lanshi Port.

I t s T i a n j i n E c o - c i t y distr ibution centre and Lu’an food logistics park are making headway and are expected to commence operations in 2016 while bu i ld ing up cus tomer pipelines. Occupancy at the new warehouse in Vietnam is also near-full while Tampines Logistics Hub in Singapore continues to progress well.

The data centre division

completed the acquisition of a property in Singapore during the quarter for development into a Tier 3 data centre providing approximately 183,000 sf of gross floor area. Keppel T&T also saw healthy take-up at Keppel Datahub 2, which will be ready to be injected into Keppel DC REIT’s portfolio in 2016, in line with the Group’s strategy to grow its data centre business in a capital-efficient manner. The division will continue to seek new data centre development and acquisition opportunities across its target markets in Europe and Asia-Pacific. keppelite



Delivering sustained returnsKeppel REIT announced higher year-on-year (y-o-y) distributable income of $54.0 million for 4Q 2015 and $217.3 million for FY 2015, which is 17.8% and 5.4% above the corresponding periods in 2014 respectively, and constant on a quarter-on-quarter (q-o-q) basis.

T h e i m p r o v e m e n t i n distributable income was due mainly to higher property income from all assets in Singapore and Australia, as well as higher contributions from share of results of associates and share of results of joint ventures. The Manager is declaring a distribution per unit of 1.68 cents for 4Q 2015, amounting to a total of 6.80 cents and a yield of 7.3% for FY 2015.

During the quarter, Keppel REIT’s gearing level was r e d u c e d s i g n i f i c a n t l y by approximately 8% to 39.3% due mainly to lower borrowings and revaluation gains from Keppel REIT’s investment properties in end-2015.

The Manager maintained its fixed-rate loans at 70%, which safeguards the REIT against interest rate volatility and provides certainty of interest expenses as well as financial and operational flexibility. Average cost of debt remained stable at

2.5% and interest coverage ratio at a healthy 4.4 times.

Keppe l RE I T ha s a l so completed almost 100% of its refinancing requirements in 2016, and continued to maintain a well-staggered debt maturity profile with weighted average term to expiry at a healthy 3.7 years. In addition, the Manager has hedged almost 100% of its income from Australia up till 3Q 2016.

The Manager’s proactive marketing and rigorous leasing efforts saw a total of 114 leases concluded for 2015, equivalent to approximately 1.6 million sf (a t t r ibutab le space of approximately 800,000 sf) of prime office space. This is approximately 23% of Keppel REIT’s net lettable area under management.

As at end-2015, Keppel REIT’s committed portfolio occupancy remained high at 99.3%.

Of the total new leases signed during the year, half were from tenants who were new to Keppel REIT’s portfolio, one quarter from tenants new to Singapore and the remaining one quarter were expansions by existing tenants.

In managing the impending office supply spike over these

two years, the Manager has been channeling its efforts to retain existing tenants and attract new tenants. Such efforts saw the Manager achieve a high tenant retention rate of 90% and a 13% positive rent reversion for its Singapore portfolio for 2015.

For leases expiring in 2016, the Manager is already in advanced negotiations with these tenants and is likely to achieve a high retention. Similarly, for leases expiring in 2017, the Manager is proactively engaging these tenants and is likely to renew most of the leases as the majority of these tenants are in their first renewal cycle. Approximately 75% of total leases are not due for renewal till 2018 and

beyond, when limited new office supply is expected.

In ensuring long-term income sustainability, the Manager continued to maintain a healthy weighted average lease expiry of approximately eight years and six years for Keppel REIT’s top 10 tenants and overall portfolio respectively as at end-2015.

Looking ahead, the Manager remains committed to deliver sustained returns through harnessing strengths to capture greater value for its Unitholders. The Manager will also continue to maintain a healthy and long lease expiry profile, and adopt a disciplined approach towards mitigating financing, interest and foreign exchange risks. keppelite

Keppel REIT celebrates its 10th anniversary in 2016. Since its listing in April 2006, Keppel REIT has grown from strength to strength to become one of Asia’s leading office REITS with premium assets in the key business and financial hubs of Singapore and Australia



The strategic forward acquisition of mainCubes Data Centre in Frankfurt expands Keppel DC REIT’s data centre footprint to Germany, a key data centre market in Europe

Keppel DC REIT’s distribution beats forecastKeppel DC REIT posted a creditable set of results on 14 January 2016 with the release of its earnings from the listing date of 12 December 2014 to full year ended 31 December 2015.

For 4Q 2015, net property i n c o m e ( N P I ) w a s $21.9 million, 1.9 % above In i t i a l Pub l i c Offe r ing ( IPO) forecast , due to rental contribution from Intellicentre 2 in Sydney and lower property expenses.

For the financial period from the listing date of 12 December 2014 to 31 December 2015, Keppel DC REIT’s distribution per unit (DPU) of 6.84 cents also exceeded its forecast by 1.9%, representing an annualised yield of 7% based on the IPO price of $0.93 per unit.

T h e h i g h e r N P I a n d distributable income for

the period were mainly due to higher variable rental income from the Singapore properties and other income from Gore Hill Data Centre in Sydney and Citadel 100 Data Centre in Dublin, as well as rental contribution from Intellicentre 2.

As at end-2015, Keppel DC REIT’s $1.1 billion portfolio comprised nine data centres in Singapore, Australia, Ireland, Malaysia, the Netherlands and England. Occupancy at the data centres remained healthy at 94.8%, up from 93.5% at IPO. The weighted average lease expiry for the portfolio was 8.7 years by leased lettable area.

Payment date for the DPU of 1.55 cents in taxable income and 1.73 cents in tax-exempt income for the period from 1 July to 31 December 2015, is 29 February 2016. Keppel DC REIT pays distributions on a semi-annual basis. keppelite

Steady distributionsKeppel Infrastructure Trust (KIT) reported its nine months and full year financial results on 18 January 2016. KIT had previously announced the change of its financial year end from 31 March 2015 to 31 December 2015 compared to the last reported financial year from 1 April 2014 to 31 March 2015.

For 9M FY15, Group revenue was $427.9 million, 12.5% higher than 9M FY14, with contributions from Crystal Trust and Keppel Merlimau Cogen (KMC) acquisitions, partially offset by lower revenue from City Gas as town gas tariff decreased with lower fuel prices, and h igher negat ive CRSM (Commercial Risk Sharing Mechanism) adjustment incurred by the Basslink Interconnector and the impact of the outage of the

link since 20 December 2015.

Basslink is an electricity interconnector between the electricity grids of the states of Victoria and Tasmania in Australia. The Trust said that the cause of the outage is still being investigated. The l ink i s current ly est imated to resume operations in March 2016.

Earnings per unit rose to 0.22 cents, compared to losses per share of 0.71 cents a year ago. Net asset value per unit as at 3 1 D e c e m b e r 2 0 1 5 increased to 35.3 cents from 12.3 cents as at 31 March 2015. This was attributable to issuance of new units in connection with the Crystal Trust and KMC acquisitions.

Total assets for the Group grew from $1.8 billion as at end-March 2015 to $4.1 billion as at end-December 2015 with the completion of the acquisitions. Total liabilities increased to $2.5 billion from $1.6 billion during the same period.

The Trust declared a distribution per unit of 0.93 cents for the quarter ended 31 December 2015. keppelite

Contributions from Keppel Merlimau Cogen (pictured) contributed to the Trust’s higher revenue for 9M FY15 compared to 9M FY14



Keppel Land acquires 22.4% stake in retail mall 112 KatongKeppel Land, through a wholly-owned subsidiary, has acquired in aggregate, a 2 2 . 4 % s t a k e i n 112 Katong lifestyle mall from BHG Holdings Pte. Ltd., Imagine Properties Pte. Ltd. and Perennial Singapore Investment Holdings Pte. L td . for an aggregate cash cons idera t ion of approximately $51.4 million.

The rema in ing 77 .6% stake is held by Alpha Asia Macro Trends Fund, which is managed by Alpha Investment Partners, a property fund management vehicle of Keppel Land.

Mr Ang Wee Gee, CEO of Keppel Land, said, “The investment in 112 Katong wil l add to our quality portfol io of reta i l and mixed-use properties. We will focus on strengthening the mall’s positioning as a lifestyle and dining destination in the East, catering to shoppers who are looking for unique experiences.

“Leverag ing synerg ies across the company, we will also tap on the expertise of Keppel Land Reta i l Management, who will be appointed the retail manager for the property.”

Keppel Land had acquired a 75% stake in reta i l

management company, Array Real Estate, in January 2015. It has since been renamed to Keppel Land Retail Management.

Strategical ly located at the junction of East Coast

Road and Joo Chiat Road, 112 Katong is a six-storey shopping mall, completed in November 2011, with a net let table area of about 207,000 sf. Major tenants include premium supermarket, Katong Market

Place, Golden Village, Food Republic and a number of well-known restaurants. keppelite

The investment in 112 Katong will add to our quality portfolio of retail and mixed-use properties. We will focus on strengthening the mall’s positioning as a lifestyle and dining destination in the East, catering to shoppers who are looking for unique experiences.Mr Ang Wee GeeCEOKeppel Land

Keppel Land has acquired a 22.4% stake in retail mall 112 Katong



First delivery in the New YearKeppel FELS has delivered Halul, a KFELS B Class jackup rig, to Gulf Drilling International Ltd. (q.s.c) (GDI ) of Qatar. I t was completed on 21 January 2016, 10 days ahead of schedule, on budget and w i th a pe r fec t sa fe ty record. It is the first rig that Keppel FELS has delivered this year.

Halul is also the fifth KFELS B Class jackup rig delivered to GDI. With its continued success fu l par tnersh ip with Keppel FELS, GDI has renewed options for two more repeat KFELS B Class

rigs for deliveries in 2018 and 2019.

Mr Wong Kok Seng, MD of Keppel O&M (Offshore) and Keppel FELS, said, “We are proud to deliver another rig to GDI early and safely. This is our first delivery of the year and we are proud that the KFELS B Class continues to be the preferred rig in the market for its high quality, efficiency and safety.

“While there is widespread industry cautiousness, the strong relationships we have built with our long-standing customers, such as GDI,

enable us to work together to deliver projects in a win-win fashion.”

The KFELS B Class rigs have a strong track record for GDI. Sister rigs Dukhan and Al Zubarah are operating success fu l l y for Qatar Petroleum while Al Khor is performing well for Shell.

Mr Mubarak A. Al-Hajri, CEO of GDI, said, “We are pleased to receive the Halul ahead of schedule, enabling us to start work earlier for Qatar Petroleum. Reliability, safety, efficiency and quality are our top

priorities in choosing a rig and a shipyard. Keppel FELS and the KFELS B Class design have demonstrated their strengths in these areas repeatedly. This is why we have chosen to renew our options for two more rigs with them. We are confident of the long term fundamentals of the industry and when the market recovers, we will be well-equipped to meet the demand.”

Built to GDI’s requirements, the jackup rig has been designed to operate in the higher ambient temperature of the Middle East. The KFELS B Class is equipped with larger spud cans for reduced bearing pressure and expands its operational coverage in more places, especially in sea beds where soft soil is predominant. The r ig can dr i l l wel ls through 30,000 feet with a cantilever that can skid out 70 feet from the edge of the hull. It features offline stand building capabilities and 7,500 PSI mud pumps, with accommodation for 150 persons.

Bes ides newbui ld r igs, N a k i l a t - K e p p e l O & M , Keppel ’s jo int venture shipyard in Qatar, recently completed a self-propelled and self-elevating liftboat, Al Safliya, which is customised for GDI. keppelite

Halul was completed 10 days ahead of schedule, on budget and with a perfect safety record. It will be the fifth KFELS B Class jackup rig to work for Gulf Drilling International


26 Special Focus

Marking milestones of environmental projectsK e p p e l S e g h e r s , t h e environmental engineering arm of Keppel Infrastructure, h a s a c h i e v e d m a j o r m i l e s t o n e s f o r t w o environmental projects in Qatar and Poland.

DOHA NORTH SEWAGE TREATMENT WORKSThe first milestone is a substantial handover of the Doha North Sewage Treatment Works (DNSTW) to the client on 10 December 2015 by Keppel Seghers Engineering Singapore Pte Ltd (Keppel Seghers), a wholly-owned subsidiary of Keppel Infrastructure

Holdings Pte Ltd (Keppel Infrastructure), to the client.

As part of the graduated handover process for the D e s i g n - B u i l d - O p e r a t e project, Keppel Seghers has commenced operations and maintenance. The contract with the c l ient covers operations and maintenance for the project’s l iquids stream, solids thickening and dewatering facilities for 10 years.

Dr Ong Tiong Guan, CEO of Keppel Infrastructure, said, “We are happy to have reached a pivotal milestone

for this project, which plays a significant role in supporting Qatar’s vision for sustainable deve lopment . We wi l l continue to work with our client to ensure the smooth operation of the project.”

The DNSTW is a wastewater treatment, water reuse and sludge treatment facility project awarded by Ashghal, the Public Works Authority of Qatar. Located Northwest of Umm Salal Mohammed, the regional town of Umm Sala l munic ipa l i ty, the facility has the capacity to treat an average flow of up to 245,000m3 of

wastewater per day and will be the largest greenfield wastewater treatment, water reuse and sludge treatment facility in Qatar.

T h e D N S T W f e a t u re s bioreactors, granular filters, ultra-fi ltration, chlorine and ultraviolet disinfection on the liquid stream side; with aerobic digestion, thickening, dewatering, and subsequently, thermal drying of the resultant sludge stream. The plant also features a dual treatment odour control system, comprising chemical sc rubb ing and carbon polishing, to minimise impact

Keppel Seghers has commenced operations and maintenance of the Doha North Sewage Treatment Works’ liquids stream, solids thickening and dewatering facilities in Qatar

27


27 27

to surrounding communities. H igh -g rade re c l a imed water from the DNSTW is subsequently transferred into Doha’s irrigation network.

The DNSTW i s Keppe l Seghers’ second landmark project in Qatar. It previously designed, built and handed over the Domestic Solid Waste Management Centre (DSWMC) in October 2011 and entered into the 20-year operations and maintenance phase of the contract. The DSWMC is the first-of-its-kind integrated waste sorting and recycling, waste treatment and green energy generation facility in the Middle East.

BIALYSTOK WASTE-TO-ENERGY PLANTKeppel Seghers celebrated the handover of the Bialystok

Waste-to-Energy (WTE) combined heat and power project in Poland to the client on 31 December 2015. The project was delivered on schedule and on budget.

Keppel Seghers was part of a consortium, comprising Bud imex S .A , one o f Poland’s largest construction companies, and Spanish waste management company Cespa Compania Espanola de Servicios Publicos Auxiliares S.A, that won the PLN 333 million (approximately $120.5 million) Engineering, P r o c u r e m e n t a n d Cons t ruc t ion cont rac t awarded by Bialystok’s mun ic ipa l so l id waste management company, Przedsiębiorstwo Usługowo-Handlowo-Produkcy jne “LECH” Sp. z o.o. (LECH) in 2012.

As part of its project work scope, Keppel Seghers supplied its proprietary WTE technology, including its air-cooled grate and vertical boiler, which are designed to achieve efficient energy recovery and operational reliability. The plant also features a fly ash solidification plant and an incineration bottom ash handling system that extracts ferrous, non-ferrous and aggregate for recycling.

Dr Ong sa id, “We are happy to have leveraged Keppel Seghers’ proven, technologically-advanced and susta inable waste management solutions to support Poland in achieving its environmental goals and meeting its commitment to the implementation of the European Union Landfill

Directive which involves reducing landf i l l ing of biodegradable waste.”

Among the f i r s t WTE plants in Poland to achieve commercial operation, the Bialystok plant can process approximately 120,000 tonnes of waste per year. The facility exports approximately 7.6 MW of electricity to the grid during summer, while during winter, it supplies 17.5 MW of thermal energy to Bialystok’s district heating and exports 6.1 MW of electricity to the grid.

The handover of both abovementioned projects are not expected to have a material impact on the net tangible assets and earnings per share of Keppel Corporation for the current financial year. keppelite

Handed over to the client on time and on budget, the Bialystok plant in Poland can process approximately 120,000 tonnes of waste per year



Keppel ranked top Industrial Conglomerate on Global 100

Keppel Corporation debuted on the Global 100 Most Sustainable Corporations in the World 2016, a list of the world’s most sustainable corporations, ranking at the top of the Industrial Conglomerates category and 55th worldwide. The results were announced on 21 January 2016 at the World Economic Forum in Davos, Switzerland, by Corporate Knights, a Toronto-based media and investment advisory company. The Global 100, in its 12th year, is recognised worldwide as the gold standard in corporate sustainability analysis.

Publicly-listed companies with a market capitalisation

of at least US$2 billion – numbering 4,353 – were considered in the 2016 Global 100 assessment. Companies were then evaluated across 12 key performance indicators that measure the management of resources, employees and finances.

Mr Loh Chin Hua, CEO of Keppel Corporation, shared, “Keppel’s inclusion i n t h e G l o b a l 1 0 0 , alongside established global firms leading the field in sustainability, is recognition of our commitment to high environmental, social and governance standards. As a conglomerate operating in over 30 countries, we place

Most Sustainable Corporations in the World

sustainability at the heart of our corporate strategy and operations, so as to create enduring value for all our stakeholders – sustaining growth, empowering lives and nurturing communities.”

Mr Toby Heaps, CEO of C o r p o r a t e K n i g h t s , r e m a r k e d , “ K e p p e l Corporat ion’s debut at 55th on the Global 100 is a commendable achievement. The presence of Asian firms on the Global 100 has grown significantly since the index was first launched in 2005. This is a trend that is set to continue as the region develops and sustainability issues gain prominence on companies’ agendas.”

K e p p e l C o r p o r a t i o n is also listed as an index component of the Dow Jones Sustainability Indices (DJSI) Asia Pacific Index, the MSCI Global Sustainability Index and the Euronext Vigeo World 120 Index. The Company recently won the Singapore Sustainable Business Awards for Strategy and Sustainability Management. keppelite

Keppel embraces sustainability as a guiding principle across its businesses in Offshore & Marine, Property and Infrastructure. The Company’s efforts were recognised as it debuted on the Global 100 Most Sustainable Corporations in the World 2016, a list of the world’s most sustainable corporations, ranking at the top of the Industrial Conglomerates category



Share swap for Keppel Bay TowerOn 30 December 2015, Keppel Corporation and Keppel Land have, through a subsidiary, entered into and completed a share purchase agreement with Mapletree Investments Pte Ltd (Mapletree) to acquire the remaining 30% interest i n H a r b o u r f ro n t O n e Pte Ltd, which holds Keppel Bay Tower, for a consideration o f a p p r o x i m a t e l y $180.9 million.

The agreement was part of a share swap transaction with Mapletree that saw the holding companies under Keppel Corporation and Keppel Land (the Keppel Group) divest to Mapletree the i r 39% in te res t in Harbourfront Two Pte Ltd, which holds Harbourfront T o w e r s 1 a n d 2 , f o r a c o n s i d e r a t i o n o f a p p r o x i m a t e l y $225.7 million.

Mr Loh Chin Hua, CEO of Keppel Corporation and Chairman of Keppel Land, sa id, “The share swap allows the Keppel Group to increase its interest in Keppel Bay Tower from 70% to 100%, thus consolidating our full ownership of the building.

“The share swap presents an attractive opportunity for the Keppel Group to unwind the cross holdings w i t h M a p l e t r e e a n d augment Keppel Land’s sterling portfolio of prime commercial properties.”

Keppel Bay Towers and Harbourfront Towers 1 and 2 were joint ly developed by Keppel and Mapletree in 2002 as part of the development of the Keppel Bay and Harbour f ront precinct.

Keppel Bay Tower and Harbour f ront Tower 1 are twin 18-storey office buildings with floor plates r ang ing f rom 15 ,000 t o 4 0 , 0 0 0 s f , w h i l e Harbourfront Tower 2 is a smaller 16-storey office building with a floor plate of 11,000 sf that houses the Singapore Cable Car station. Collectively, the buildings o f f e r a p p r o x i m a t e l y 910,200 sf of quality office space.

The agreements for both t h e a c q u i s i t i o n a n d divestment were negotiated on a wil l ing-buyer and willing-seller basis. keppelite

The Keppel Group consolidated ownership of Keppel Bay Tower through a share swap transaction with Mapletree



A trusted partner

Keppel FELS ushered in the New Year with the safe and on-budget crossing of critical project milestones, affirming the company as a choice solutions provider in the industry.

LAYING STRONG FOUNDATIONSKeppel FELS and Crystal Heights celebrated the strike steel and keel laying ceremonies of P ro jec t B375, a se l f -e levat ing and self-propelled liftboat in December 2015. The ceremony was witnessed by the project team, including Mr Kenny Cai, Director of Crystal Heights, as well as senior management from Keppel FELS.

Mr Cai shared, “Keppel’s trusted brand name gives us the confidence to work together even in the current weak oil price environment. With a reputable shipyard that has a proven track

record, we are assured of safe, high quality and on-time deliveries.”

The project team has been making steady progress since the liftboat contract was secured in July 2015. Designed by Keppel Offshore & Marine’s (Keppel O&M) liftboat specialist, Bennett Offshore, in collaboration with Keppel FELS, the liftboat is scheduled for delivery in 4Q 2017. It will have provisions that enable it to operate in China, the Middle East and the Gulf of Mexico.

Mr Wong Kok Seng, MD of Keppel O&M (Offshore) and Keppel FELS, said, “While the market for dr i l l ing rigs remains depressed, Keppel has the versatility and capabilities to design and build other products t h a t a re i n d e m a n d , such as mobile units for plug and abandonment,

a c c o m m o d a t i o n a n d maintenance.”

Project B375 is the second liftboat based on Keppel’s innovat i ve propr ie ta ry solution that the yard has been contracted to build.

FAST-TRACK FINISHJust shy of the New Year on 30 December 2015, the Flying Squad, Keppel FELS’ in-house team of professional offshore repair specialists, marked the safe completion of structural repair works on ENSCO 8504, an ultra-deepwater semisubmersible drilling rig. Thanks to the close partnership between Keppel FELS and Ensco, the repair work was completed within nine days.

Mr Dale Drader, Rig Asset Manager, Ensco, said, “We have worked with Keppel on a number of key projects and they continue to live up to their reputation as a trusted

and reputable shipyard. This was a challenging job as the project teams had to work under a tight deadline with space constraints, but Keppel FELS responded professionally to ensure a safe and timely completion.”

ENSCO 8504 is one of the seven ENSCO 8500 Series® ultra-deepwater semisubmersible drilling rigs that Keppel FELS has built exclusively for Ensco over the years. The proprietary ENSCO 8500 Series® design is capable of drilling in up to 8,500 feet of water, and can be upgraded to 10,000 feet water-depth capability if required. The design includes a 35,000 nominal rated drilling depth, six ram blowout preventer, two million pound hoisting capacity, 8,000 tonnes of variable deck load and an open layout well-suited for subsea completion activities. keppelite

Celebrating the strike steel ceremony of Project B375 are Mr Chris Ong (extreme left), Deputy MD, Keppel FELS and Mr Kenny Cai (second from left), Director, Crystal Heights, with the project team



Enhanced data solutionsKeppel Data Centre’s clients will benefit from network IaaS offering which offers enhanced connectivity across Singapore and around the world.

Keppe l Da ta Cent re s , a subsidiary of Keppel Te lecommunicat ions & Transportat ion L imited (Keppe l T&T ) , has on 18 January 2016, selected Epsilon, a privately owned global communications service provider, to deliver local access networks in Singapore, IP Transit services and global connectivity.

K e p p e l D a t a C e n t re s will be able to support the network ing needs of i ts customers us ing Epsilon’s flexible network Infrastructure as a Service (network IaaS) offering, enabling them to scale their cloud services globally.

Mr Thomas Pang, CEO of Keppel T&T said, “Beyond providing just data centre colocation services, we are exploring more ways to add value and further support our cl ients’ businesses. Organisations today need flexible, proven and secure infrastructure to run their enterpr ise appl icat ions and solutions. By offering network IaaS, our clients will enjoy enhanced connectivity and flexibility when they need to incorporate cloud infrastructure to sca le up quickly.

“We will continue to explore new opportunities with

customers and support their growth in the long term,” he added.

Epsi lon has local f ibre infrastructure connecting data cent re s i te s and enterpr ise locat ions in Singapore to its global network spanning Europe,

the Middle East, North America and Asia-Pacific.

“Singapore is one of the world’s largest cloud hubs and we are proud to support the local and international growth of Keppel Data Centres’ customers. Our network IaaS is an ideal

match for data centre providers who want to efficiently expand their network footprint with a model that is as flexible and agile as the cloud services they support,” said Jerzy Szlosarek, CEO of Epsilon. keppelite

Moving beyond data centre colocation services, Keppel Data Centres has partnered Epsilon to offer clients greater connectivity and flexibility to scale up their network infrastructure when required



Senior Minister of State in the Prime Minister’s Office, Ministry of Foreign Affairs and Ministry of Transport, Mrs Josephine Teo (centre, in dress), delegates from the Ministry of Transport, the Maritime and Port Authority of Singapore and Keppel senior management posing for a group picture with the Floating Liquefaction Facility, GoFLNG Hilli (background), which is at Keppel Shipyard for conversion works

Showcasing gas solutions

As a leading provider of o f f s h o re a n d m a r i n e solutions globally, Keppel Offshore & Marine (Keppel O&M) is poised to seize Liquefied Natural Gas (LNG) development opportunities in the region. Its ship repair and conversion unit, Keppel Shipyard, has a long track record in catering to the LNG market, and was the first shipyard in the world to provide conversion solutions for a Floating Liquefaction Facility in 2014.

On 13 January 2016, Keppel Shipyard invited Senior Minister of State (SMS) in the Prime Minister’s Office, Ministry of Foreign Affairs and Ministry of Transport, Mrs Josephine Teo, to a visit to the yard to share and

exchange views on the LNG market.

Receiving SMS Teo were s e n i o r m a n a g e m e n t including Mr Loh Chin Hua, Chairman of Keppel O&M and CEO of Keppel Corporat ion, Mr Chow Yew Yuen, CEO of Keppel

O&M, and Mr Michael Chia, MD (Marine & Technology) of Keppel O&M.

During the meeting, Keppel shared on its proprietary s o l u t i o n s t h a t c a t e r to different parts of the LNG value chain as well as key market drivers and

chal lenges. Among the solutions developed by Keppel was a dual-fuel diesel LNG tug design that clinched the Outstanding Maritime R&D and Technology Award at the 2015 Singapore Internat ional Mar i t ime Awards. keppelite

Fuel for thought

The best way to predict the future is

to invent it.

Alan Kay, American computer scientist



Nakilat-Keppel Offshore & Marine has signed an agreement with Angelicoussis Shipping Group to be its preferred shipyard for ship repairs in the Middle East

Preferred yard in the Middle EastNakilat-Keppel Offshore & Marine (N-KOM), Keppel Offshore & Marine’s shipyard in the Middle East, has signed a landmark agreement with the Angelicoussis Shipping Group (ASGL) as its preferred shipyard for ship repairs in the region.

AGSL is the largest ship owner in Greece with a fleet

of more than 110 vessels. The agreement covers all vessels operated by the three ship management companies under the group.

N-KOM and ASGL have a longstanding relationship tracing back to 2011 when the shipyard first commenced operations. Maran Gas Maritime, the gas shipping

unit of ASGL, then sent its first Liquefied Natural Gas (LNG) carrier to N-KOM for servicing. Since then, N-KOM has proven to be a trusted partner of ASGL, going on to service 13 LNG carriers and tankers for ASGL.

Mr Chandru Rajwani, CEO of N-KOM, said, “ASGL is an important partner which has

progressed with the shipyard through its years of growth and expansion. We are delighted to be able to bring our partnership to the next level with the signing of this fleet agreement, affirming N-KOM as the premier choice in the region for repairs and maintenance.”

Mr John Angelicoussis, CEO of ASGL, said, “We have been very satisfied with the high quality shown in the repair jobs executed by N-KOM for our vessels and are pleased to be furthering our partnership with them through yet another strategic a g r e e m e n t . We l o o k forward to working with their experienced team of professionals in maintaining our fleet of vessels.” keppelite

Reliable supportL o n g t i m e c u s t o m e r Tr an socean ca l l ed on Keppel FELS Brasil’s BrasFELS shipyard for support services on the semisubmersible rig Deepwater Navigator in December 2015.

The semisubmersible was at Bananal Bay over a period of 12 days from 30 December to 10 January 2016 during

which BrasFELS extended safe and efficient logistics support for materials and equipment to Deepwater Navigator.

Following the successful s e r v i c e s r e n d e re d t o Transocean, Deepwater Navigator is en route to Europe to support its sister vessel Transocean Malta. keppelite

BrasFELS provided safe and efficient logistics support for Transocean’s semisubmersible rig Deepwater Navigator (pictured)



At the helmKeppel Telecommunications & Tr a n s p o r t a t i o n L t d (Keppel T&T) bolsters its bench strength with the appointment of Mr Wong Wai Meng as CEO, Keppel Data Centres, from 18 January 2016.

As CEO of Keppel T&T’s data centre division, Mr Wong will spearhead the company’s thrust towards being one of the leading data centre developers and operators in Europe and the Asia Pacific. He will report to Mr Thomas Pang, CEO of Keppel T&T.

Mr Wong has more than 20 years of experience in the Information and Communications Technology (ICT) industry. Prior to joining Keppel T&T, he was Vice President of BT Advise – BT Global Services across Asia Pacific, Middle East, Africa and Turkey (AMEA), where he managed the company’s pract ices in business consulting, systems i n t eg ra t i on , so f twa re development, networking, mobility, collaboration and security. He was also CEO of the BT Frontline group

of companies where he played a critical role in the integration of BT Frontline into BT Global Services.

Mr Pang said, “Wai Meng brings with him both rich and diverse experience in the ICT industry. I am confident that his knowledge of the digital landscape will be an asset to Keppel T&T as it continues to capitalise on big data growth trends with best-in-class data centre solutions for its valued customers.” keppelite

Mr Wong Wai Meng joined Keppel Data Centres as its CEO with effect from 18 January 2016

Logistics provider of choiceAs a testament to Keppel Telecommunications and Transportation’s (Keppel T&T) proven track record and logistical capabilities in Southeast As ia , i t s subsidiaries secured three contracts during the second half of 2015, serving clients in the healthcare, e-commerce and fast moving consumer goods (FMCG) industries.

One of the contracts involves the provision of warehousing and distribution services to healthcare client SingHealth.

Commenting on the contract win, Mr Desmond Gay, CEO

of Keppel Logistics Pte Ltd, said, “Our focus on technology and increasing

efficiencies in our logistics operations have paved the way for us to gain market

share and acquire valuable clients such as SingHealth.” keppelite

Mr Desmond Boo, GM, Keppel Logistics, showcased the division’s capabilities to senior management from SingHealth



In line with the Manager’s aim to maximise and capture value, Keppel REIT has divested its interest in 77 King Street

Capturing value down underKeppel REIT has successfully divested its 100% interest in 77 King Street in Sydney, Australia, to ARE Noble, a wholly-owned subsidiary of Invesco Asia Core Fund fo r A$160 m i l l i on o r approximately S$160 million. This resulted in a divestment ga in of approx imate ly A $ 2 8 m i l l i o n o r S$28 million1.

The sale price is approximately 40% above Keppel REIT’s original purchase price of A$116 million in end-2010 and an approximate 27% premium over the property’s latest valuation of A$126 million2.

Ms Ng Hsueh Ling, CEO of Keppel REIT Management, s a i d , “ T h e s t r a t e g i c divestment of 77 King Street is in line with our commitment to maximise and capture va lue for Unitholders, while providing Keppel REIT with greater financial flexibility.”

The Manager intends to use the sale proceeds to repay existing debt, fund genera l corporate and working capital purposes and/or for future investment opportunities.

Located in Sydney’s Central Business District, 77 King Street offers approximately 147,000 sf of net lettable area over 18 levels of offices and two basement levels of retail space.

The divestment of 77 King Street is not expected to have any material impact on Keppel REIT’s distribution per unit for the current financial year.

Following the divestment, Keppel REIT will continue to own four premium-grade office assets in Australia comprising 50% interests in 8 Chifley Square in Sydney, 275 George S t ree t in Brisbane, the office tower and annexe at the Old Treasury Building site in Perth, 8 Exhibition Street and its two retail units, as well as a 100% interest in its three adjoining retail units in Melbourne. The weighted average lease expiry of Keppel REIT’s Australian portfolio will be approximately 10 years, with an average age of five years. keppelite

1 Based on the exchange ra te o f A$1 = S$1 as at 14 January 2016

2 Valuation by Savills as at 31 July 2015



Deepening presence in ChinaKeppel Land China was confe r red the Top 10 ASEAN Companies in China award by the China-ASEAN Business Council (CABC) on 19 January 2016 for its contribution to the Chinese economy and i ts loca l communities. This is the fourth consecutive year that the company has received this accolade.

Held in Bei j ing, China, the award ceremony was graced by Mr Liu Guchang, former Chinese Vice Foreign Minister and Chairman of China Foundation for I n te r na t iona l S tud ie s ; Mr Ge Zhirong, Counsellor o f S t a t e Counc i l and President of the China Entry-Exit Inspection and Quarantine Association; Mr Xu Ningning, Executive Secretary-General of China-ASEAN Business Council, as well as ambassadors to China from all 10 ASEAN countries.

Mr Ang Wee Gee, CEO of Keppel Land, said, “We are honoured to be recognised as one of the Top 10 ASEAN Companies in China for the fourth consecutive year. As one of the first foreign real estate companies to enter China more than 20 years ago, Keppel Land has been privileged to contribute to China’s urbanisation and grow in tandem with the country.

“Today, China is one of Keppel Land’s core markets a n d o u r p o r t f o l i o o f award-winning residential, commercial, waterfront and lifestyle developments across 10 Chinese cities is distinguished for its quality, sustainability and thoughtful i n n o v a t i o n s . W e a r e committed to deepening our presence in the key cities of Beijing, Shanghai, Chengdu, Tianjin and Wuxi, where we have established strong track records, networks and local teams.

“As we do well, we are also focused on doing good. As a responsible corporate citizen, Keppel Land continues to engage and support communit ies wherever we operate through our multi-faceted approach towards corporate social responsibility.”

Keppel Land China is a wholly-owned subsidiary of Keppel Land, the property arm of the Keppel Group. The company is focused on developing township,

residential , waterfront, commercial and mixed-use developments in China. Over the years, Keppel Land China has expanded its footprint in China to 10 cities. To date, Keppel Land China has over 20 projects with a pipeline of about 39,000 homes.

As at end-2015, Keppel Land has a portfolio of assets worth about $7.1 billion (RMB32.3 billion) in China. China is the largest market for Keppel Land, accounting for about 48% of total assets. keppelite

On behalf of the company, Mr William Tan (second from left), Regional Head of Keppel Land China, received the award for Top 10 ASEAN Companies in China by the China-ASEAN Business Council in a ceremony held in Beijing on 19 January 2016. On his left is Mr Liu Guchang (third from left), former Chinese Vice Foreign Minister and Chairman of China Foundation for International Studies. This is the fourth consecutive year that Keppel Land China has been honoured for its economic and social contributions to local Chinese communities



Promoting a culture of safetyKeppel Verolme introduced its safety theme for 2016 – ‘Play Your Part’ . The theme emphas ises the respons ib i l i ty of every individual in creating a safer

work environment at the yard. In daily operations, s t a f f a re expec ted to abide by the five C’s of Commitment, Competence, Cooperation, Control and

Communication. Appointed safety ambassadors, 29 in total, have been trained to guide workers to work safely and develop practices that improve safety.

Keppel Verolme’s ambassadors of safety (in orange shirts), Danny Peters, (left) a Steelworker, and Mark Heuders, (right) a Project Manager, receive a cheque for their efforts in championing safety, as Keppel Verolme’s management (from L-R): Mr Harold Linssen, MD of Keppel Verolme; Hein Mangroe, Health, Safety & Environment (HSE) Manager and Bert van Schijndel, GM of Human Resource and HSE and Quality look on

In addition to the safety theme, Keppel Verolme set up a Safety Training Centre to equip all stakeholders with the right skillsets.

Mr Harold Linssen, MD of Keppel Verolme, said, “It is important for everyone to ‘Play Your Part’ to improve sa fe ty awareness and processes at the yard. We promote the five C’s to all our stakeholders, and at the same time, foster a culture of accountability so that we help look out for each other’s safety. The Safety Training Centre was set up to better equip workers with the right skills and capabilities.”

T h e K e p p e l Ve r o l m e Safety Tra in ing Centre was officially opened on 10 December 2015. Its set up simulates typical safety-related scenarios at the yard. Specifically, separate booths within the Centre provide training on the seven High Impact Risk Activities (HIRA) of hot work, working in a confined space, working at height, electrical work, lifting safety, risk assessment or permit to work, and operating of heavy vehicles.

Employees as well as vendors and subcontractors will betrained to detect and respond effectively to potential risks as they arise. The centre can accommodate a maximum of 10 to 15 people at a time. keppelite

Keppel Verolme’s Safety Training Centre was set up to better equip workers with the right skills and foster a culture of safety and responsibility



Igniting innovationKeppel i tes at BrasFELS were recognised for their innovative ideas during the company’s annual Inove competition on 18 December 2015.

The team from Painting and Maintenance clinched the first prize for their idea that improved the process of treating hydro-blasting effluents.

C o m m e n d i n g t h e participants on the projects, Luiz Queiroz, Quality, Health, Safety and Environment Manager, BrasFELS, said,

“The winning pro jects demonstrated excellence in a variety of metrics such as cost saving, productivity, optimisation of resources, cons ide ra t ion fo r the environment and safety. This is truly a showcase of

our employees’ creativity a n d t a l e n t . We l o o k f o r w a r d t o m o r e innovative projects next year which will go a long way towards improving the working environment at BrasFELS.”

The Inove programme aims to spark ideas that reduce costs and enhance productivity, product and service quality, as well as employee wellbeing. keppelite

Keppelites at BrasFELS were recognised for their innovative projects at the annual Inove competition held on 18 December 2015

New developer in the Tianjin Eco-CityOn 13 January 2016, CIFI Holdings (Group) Co. Ltd (CIF I ) successful ly b id, through a subsidiary, for a 9.6 ha residential land plot in the Sino-Singapore Tianjin Eco-City (Sino-Singapore Eco-City), the landmark bilateral project between Singapore and China.

Put up by the Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC), the site is located adjacent to the beautiful Huifeng Creek Park, and in close proximity to Nankai High School (opening in September 2016) and the

future LRT Station along the Z4 Line (completion by 2020).

Future residents living here will also be able to enjoy the wide range of facilities and amenities that have already been established in the neighbouring Start-Up Area. One of the Top 100 property developers in China, CIFI will develop the land into a low-density eco-community comprising townhouses and western-style houses, with a total gross floor area of around 96,008 sm.

Mr Wu Xue, GM of Tianjin Business Division, CIFI, said,

“The Tianjin Binhai New Area (TBNA) is an important part of the integrated development of Beijing, Tianjin and Hebei, and it has been taking the lead in economic development, industry architecture and environmental protection in the region. Over the past few years, the Sino-Singapore Eco-City, as a key area in TBNA, has made remarkable achievement in building an ecological and liveable city. We are honoured to be able to join in the development of the city and will endeavour to build high-quality green homes.”

CEO of SSTEC Mr Liew Choon Boon said, “We are delighted to welcome CIFI to participate in the Sino-Singapore Eco-City’s next phase of development in the central district - the core area, with more Singaporean elements such as a Sino-Singapore Friendship Park and a S ino-S ingapore Friendship Library. There will also be a more conducive living environment, well-connected transportation, b u s i n e s s a n d c u l t u re amenities and renowned schools in this area.” keppelite



Vigilance bears fruitKeppel AmFELS’ continued vigilance on its projects bore fruit as it recorded another impressive safety milestone on the P209 project. The yard achieved 1.5 million man-hours with zero lost time incidents.

At a ceremony held on 19 November 2015, the customer presented the team with a plaque as well as jackets as tokens of appreciation to everyone working on the project. Mr Simon Lee, President of Keppel AmFELS, said, “We are pleased to continue on this safety journey with our valued customer. It is a demonstration of the yard and our partners’ strong

commitment to safety. I want to commend everyone involved in the project and the hard work and close cooperation between the teams in accomplishing this milestone. Our focus is to reinforce safety practices in our day-to-day operations. We must not be complacent but maintain this rigour to ensure everyone, not just on this project, but in the entire yard, is safe.”

On the P209 project, a safety committee comprising yard and customer representatives promote and evaluate safety initiatives, such as campaigns and awareness programmes, and ensures alignment and collaboration during the execution of the project.

K e p p e l A m F E L S a l s o launched the End Safe 2015 and Start Safe 2016 campaign in December to encourage continued safety vigilance during the festive period. With the motto of “Safety is a journey; all accidents are preventable”,

employees p ledged to ensure a safe working environment for themselves and their fellow coworkers. Those wi th exemplary safety performances were recognised by the company. keppelite

Keppel AmFELS and customers celebrate the strong teamwork in achieving another excellent safety achievement on the P209 project

Keppelites at AmFELS stood shoulder to shoulder in pledging a safe working environment for all



Spurring Innovations

Hook to be safe

Keppel Merlimau Cogen power p lant , which i s o p e r a t e d b y K e p p e l Infrastructure, is a combined cycle gas turbine generation fac i l i t y located in the Tembusu sector of Jurong Island in Singapore.

With a generation capacity of 1,300 MW, the plant has clocked more than two million man-hours without any reportable lost-time incidents since it started commercial operations in April 2007.

Over 50 employees handle day-to-day operations and maintenance in sh i f ts , ensuring that the plant is working efficiently round-the-clock.

While most sections of the plant are accessible via stairs and other permanent

s t ruc tu re s , t empora r y scaffolding is sometimes used to support the workers in their maintenance work. These temporary platforms can be as high as 15 to 20m. Any worker accessing them is required to wear a full-body harness attached via two carabiners to a secure anchor point on the scaffolding.

As they focus on their work, workers may sometimes overlook to hook their carabiners to a secured anchor point. Since the harness is only effective when secured, this unsafe practice may result in injuries or even a fatality if the worker falls.

According to the Workplace Safety and Health Council, incidents from working at heights account for more than half of total workplace fatalities in Singapore.

To mitigate the r isk of falls, a team from Keppel Merlimau Cogen Operations and Maintenance sought to improve the safety equipment.

The team attached a pair of sensors, a buzzer and a flashing red light to a standard body harness, w h i c h a l e r t w o r k e r s when their carabiners are unsecured or detached from an anchor point.

Team leader of the project, Praveen Kumar, Senior Mechanical Engineer, Keppel Infrastructure, shared, “With the improved harness design, staff working at height will be reminded to secure their carabiners to an anchor point at all times. The risk of falling is significantly reduced, and supervisors are able to keep a closer eye on their workers.”

Powered by a battery, the weather-proofed sensors, buzzer and light are activated the moment the harness chest straps are fastened, and can only be deactivated when sensors attached to each carabiner detect that either one of the hooks has been secured to an anchor point. The flashing light acts as an additional visual alert mechanism in the event that the buzzer cannot be heard in a noisy environment.

With the modification to the safety harness, workers working at height are always reminded to secure their carabiners to safeguard themselves against potential falls.

The team’s ingenuity scored them a Safety Innovation project Gold Award at Keppel Safety Convention 2015. keppelite

To mitigate the risk of falls from height, a team from Keppel Merlimau Cogen Operations and Maintenance worked to improve the standard body harness used by the workers

By attaching a pair of sensors, a buzzer and a flashing red light to the standard body harness, staff working at height are always reminded to secure their carabiners to safeguard against potential falls

Empowering Lives 41


Empowering LIves 41

Indomitable spiritIf you asked Marc Chiang four years ago, he would have scarcely imagined himself representing Singapore at a regional sporting event, much less leading a team as its captain. Marc is afflicted with retinis pigmentosa, a degenerative eye disease that severely impairs vision.

In December 2015 however, that’s exactly what the 35 year-old Facilities Engineer at Keppel Digihub did, when he headed Singapore’s first Goalball team at the ASEAN

Para Games (APG). Goalball is a sport that requires athletes to don blindfolds and roll a ball into opposing teams’ goals. They dive to block the attempts by listening to bells embedded in the ball.

A l t hough S i ngapo re ’s inaugural foray into the sport at the APG ended with a 4-14 and 6-16 defeat by Laos and Indonesia respectively, Marc considers the event a success at showcasing the abilities of para-athletes. He said, “It’s the first time

that the APG was held in Singapore. Holding the event at a public venue like Marina Bay Sands and flooding the venue with physically and intellectually impaired people really raised awareness of what we were capable of. To me, the athletes really personified the Can Do! spirit.

“I was personally motivated by t he chee r s o f my friends and particularly my colleagues who came to support me during the matches. They have been very supportive all along the way, helping me whenever they can,” he added.

Marc first joined Keppel Digihub in 2008 at the age of 28. He had normal vision then, until he started losing his sight when he was 31.

“I was initially apprehensive about sharing about my vision-loss in the beginning. Fortunately, everyone at w o r k h a s b e e n v e r y supportive, and my work scope was redesigned to accommodate my condition. Initially, my work was very front-end facing. I was going to data centres and inspect ing equipment . Now, even though I am more desk-bound, the team taps my experience and I help them with developing processes and certification submissions.

“My job is very exciting and fast paced, as the data centre industry is growing rapidly. I contribute the best I can, helped by assistive technology on the computer.”

Marc’s contributions to the company and Singapore’s s p o r t i n g s c e n e w e re recognised during Keppel Te lecommunicat ions & Transportation’s (Keppel T&T) annual Dinner and Dance on 11 December 2015, where he was presented with a token of appreciation by Mr Thomas Pang, CEO of Keppel T&T.

With the excitement of the games fading, life is returning to normal for Marc. He remains modest about his efforts. He said, “It doesn’t matter if you are able-bodied or a special-needs individual. At the end of the day, it’s about teamwork and putting your heart and mind to whatever you do. It might mean a different way o f do ing th ings , perhaps a little slower, but things can still be done. Just like playing Goalball. You use your sense of hearing instead of sight, and you get through together as a team. keppelite

Supportive colleagues helped Marc Chiang (first row, second from left), Facilities Engineer at Keppel Digihub, juggle his work and training commitments for the ASEAN Para Games 2015 where he led Singapore’s Goalball team

42 Empowering Lives


Passing the batonMr Tong Chong Heong, former Senior Advisor to the Board of Keppel Offshore & Marine (KOM), assumed the role of KOM Alumni Chairman on 15 December 2015. He had taken the helm from Mr David Chin, who stepped down as Chairman of the Alumni after five years of service.

Du r i ng h i s t enu re a s t he Cha i rman o f t he KOM Alumni, Mr Chin spearheaded various events which strengthened the camaraderie and goodwill among Keppelites. This included the KOM Alumni

Get-Together Tea Session cum Chua Chor Teck Memorial Lecture and KOM Alumni Dinner.

Th rough the A lumn i , K e p p e l i t e s p a s t a n d present have been able to stay connected and build meaningful networks with each other, sharing an affinity for Keppel.

Mr Tong shared in his first letter to members that he would strive to continue Mr Chin’s good work and make participation in the Alumni interesting and meaningful. keppeliteMr Tong Chong Heong (pictured ) succeeds Mr David Chin as Chairman of the KOM Alumni

Distinguished serviceFormer Director (Special Duties) of BrasFELS Mr Low Tiau Tong was conferred the title of Honorary Angrense Citizen by the City Council of the municipality of Angra dos Reis in Rio de Janerio where BrasFELS is located.

T h e r e c o g n i t i o n w a s presented to Mr Low, who is affectionately known as TT to colleagues and friends, for his many years of service to the development of BrasFELS and its surrounding communities.

Counci lman Mr Cleber Antônio da Silva presented Mr Low with a plaque reflecting his honorary title.

For his contributions to the municipality of Angra dos Reis, Former Director (Special Duties) of BrasFELS Mr Low Tiau Tong (pictured holding certificate) was conferred the title of Honorary Angrense Citizen by the municipality’s City Council

The Councilman shared his delight in presenting Mr Low with the award and expressed his appreciation

for the great professionalism and expertise shown by Mr Low during his years of service at BrasFELS. keppelite

Empowering Lives 43


Welcoming the New YearKeppelites across Keppel Offshore and Marine (Keppel O&M) came together in December 2015 to celebrate successes of the past year and welcome the New Year. Their camaraderie

was evident as they gathered with their respective business units to bond over games and performances, and enjoy a festive meal together as one Keppel family. keppelite

1. From L-R: Mr Tong Chong Heong, Chairman of Keppel Offshore & Marine Alumni; Mr Choo Chiau Beng, Chairman of Keppel Fellows; and Mr Wong Kok Seng, MD, Keppel O&M (Offshore) and Keppel FELS, join in the Keppel FELS New Year celebrations; 2. Keppelites from Keppel FELS bonded over the yearend festivities; 3. Mr Michael Chia, MD, Keppel O&M (Marine and Technology), presents the first prize of Keppel Shipyard’s lucky draw contest to the jubilant winner; 4. The Keppel Singmarine family gathered to celebrate the New Year at a yearend luncheon on 30 December 2015; 5-6. Keppelites across Keppel O&M’s business units celebrated the end of a fruitful year in 2015 and welcomed 2016 with cheers, music and laughter

1 2

3 4

5 6

44 Empowering Lives


Sound strategyHaving renewed its leadership and brought on fresh insights with the appointments of Ms Tan Eng Hwa as CFO,

Keppel Telecommunications & Transportation (Keppel T&T); Mr Desmond Gay as CEO of Keppel Logistics Pte

At a Townhall discussion on 11 December 2015, senior management from Keppel T&T engaged staff in a robust panel discussion on the company’s strategy for the year ahead

Appreciation to staffTo thank staff for their hard work over the past year and to facilitate cross-cultural exchange, Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd. (SSTEC), together with its fully-owned subsidiaries Tianjin Sino-Singapore Eco-City Eco-Homes Investment and Development Co., L td . and T ian j in Eco -C i t y Shengheng E co -Maintenance and Services Co., Ltd. held its Annual Staff Conference and Dinner on 8 January 2016.

More than 300 staff and management gathered at

Hilton Tianjin Eco-City for an evening of merriment. Participants reflected on the achievements of SSTEC over the past year and looked forward to the year ahead.

Reveal ing their hidden talents, different teams put up interesting performances, dancing and singing to the delight of everyone present.

SSTEC is a 50-50 joint venture formed by the Keppel-led Singapore consortium and its Chinese consortium partners to lead the development of the Sino-Singapore Tianjin Eco-city. keppelite

Management of SSTEC toasted the New Year in Singapore fashion with a traditional Yam Seng

Ltd and Mr Wong Wai Meng as CEO of the data centre division, Keppel T&T held a Townhall on 11 December

2015 to communicate the company’s strategy and outlook for 2016.

Mr Thomas Pang, CEO of Keppel T&T, joined stalwarts Ms Chan Shui Har, Deputy CEO of Keppel T&T, and Mr Chua Hsien Yang, CEO of Keppel DC REIT, to recap the company’s performance for the year.

Following a robust panel d i scuss ion, s ta ff were convinced of Keppel T&T’s strategy to gear up and continue achieving new growth milestones. keppelite

Empowering Lives 45


Keppelites Around the World

It may not have been an easy decision at the start to embark on an overseas attachment, but Shuping (middle, in black sleeveless top) now relishes the challenges that each new day on the job brings, and the learning opportunities that come along with the dynamic environment in Vietnam

Looking back at the past year and a half spent in Ho Chi Minh City (HCMC), Vietnam, Lim Shuping, Project Executive at Keppel Te lecommunicat ions & Transportation (Keppel T&T) has no regrets about making the big leap with an overseas stint in her first job out of university.

As a wide-eyed graduate upon joining Keppel T&T in 2013, Shuping entered the Group’s Management Trainee Programme, which provides exposure to working in various departments, job functions and business units in the Group on a rotational basis. Part of the rotation involves a minimum six-month overseas attachment with one of Keppel T&T’s business units in the region. Fast forward one year and Shuping has not looked back since, even jumping at the opportunity to extend her stint when offered.

“Sure, it was not easy adapting at the start when I first came to HCMC. I’ve been to Vietnam before as a tourist, but living and working here is a whole different thing altogether,” recalled Shuping.

“Part of my role when I

Relishing challengefirst came required me to help localise and implement initiatives from headquarters in S ingapore down to the ground staff. I soon realised that what worked in Singapore might not necessarily work in other countries with different cultures. It’s challenging, but I enjoy it, being on the forefront in such a fast-growing nation and fast-growing market like Vietnam, and making things happen.”

In true blue Singaporean style, Shuping used food as an analogy to elaborate further. “Living in Vietnam, you have to expect the unexpected. There will be surprises thrown at you. In Singapore, we’re pampered with franchised restaurants that open seven days a week with predictable opening hours, but in Vietnam where most establishments are family-owned and operated, you might visit a café and find it unexpectedly closed for random reasons. You have to expect the unexpected and be adaptive. That’s what makes this place so exciting.”

From bridging and rolling out initiatives, Shuping has progressed to helping Keppel T&T’s subsidiary, Indo-Trans

Keppel Logistics with project operations and account management for its many logistics clients.

The same adaptability that has served Shuping well on the job has also proven useful during visits back home, where she demonstrates her acquired cooking skills for her family. “I remember

not being able to find the exact same ingredients in Singapore to make authentic Vietnamese spring rolls. I improvised to the best of my ability and used what I could find, like Japanese sesame dressing. My family loved it.

“Or so they tell me!” laughed Shuping. keppelite

46 Empowering Lives


Decades of serviceKeppelites are renowned for their relentless work ethic. The unwavering dedication of Keppelites who have served the Group over the years has helped the Group grow from strength to strength. Such is their loyalty that many have stayed with Keppel through thick and thin, some for their entire careers.

One such example is Mr Mah Chan Wah, who recently retired as GM, Commercial, at Keppel Shipyard. Mr Mah first joined Keppel Shipyard in 1973 as a fresh-faced trainee Ship Repair Manager straight out of university.

In a thank you note to his colleagues upon his r e t i r e m e n t , M r M a h desc r ibed how i t had been “an invaluable and inspirational experience to have worked with a great Keppel team”. He expressed his “deep gratitude and appreciation to the company and senior management for all the years of support and nurturing”, with special thanks going to Mr Tong Chong Heong for being a firm but caring mentor during the formative years of his career.

Mr Tong, who himself spent 44 years at Keppel, is the former CEO of Keppel Offshore & Marine.

Expressing confidence in Keppel’s future, Mr Mah said, “With Keppel’s Can Do! spirit, there is little doubt that the current management team wi l l success fu l l y write the next chapter of Keppel’s story, as did the p ioneers before them, despite the very challenging times ahead. Without fail, having overcome so many cyclical changes and sailed many stormy seas, in this dynamic marine and offshore business, ‘MV Keppel’ will be guided by strong leadership and steady hands towards calmer waters.”

Also retir ing with fond memories is Mr Goh Han Kee, who recently stepped down as Deputy GM, Projects, at Keppel Land. At his farewell lunch, Mr Goh thanked his colleagues for their teamwork and observed that “Keppel’s core values are also relevant and applicable to our personal lives”.

Having spent over 26 years at Keppel Land, Mr Goh re coun ted how many Keppelites return to the fold after leaving the company, a testament to Keppel’s enduring appeal as an employer.

S ince s tepp ing down, Mr Goh has embraced his new role as a full-time doting

grandfather. When he does not have his hands full helping to look after his 10-month old granddaughter, he is busy with a regular exercise schedule of table tennis, bowling, badminton and even Zumba.

A lifelong learner, Mr Goh has taken the opportunity to pick up wildlife and landscape photography, as well as to catch up on his reading. keppelite

Mr Goh Han Kee (centre), who recently retired as Deputy GM, Projects, Keppel Land, is enjoying his retirement by spending time with his family, including his wife and 10-month old granddaughter

Nurturing Communities 47



Educational outreachIn October 2015, Keppel Verolme, participated in a three-day event to raise awareness among local students about the nature of Keppel Verolme’s work and about the marine industry at large.

Called Tech2Do, the event was jointly organised by the municipalities of Rotterdam and saw some 1,100 student visitors from high schools across the Rotterdam- Botlek region in the Netherlands participating in a wide range of activities.

It was Keppel Verolme’s second time participating in

the event. At the company’s booth, hands-on activities, such as the building of paper models of jackup rigs or cruise vessels, were very popular with the students. A training school teacher, two apprentices and a Human Resource (HR) officer from Keppel Verolme assisted the young enthusiasts in building their favourite paper models.

Ms Maureen Prins, HR officer at Keppel Verolme, who had been supervising the students, shared, “Tech2Do, with its interactive activities, serves as a good platform for the young to learn about the offshore and marine industry.

The offshore and marine industry is an important one in Rotterdam. As a major employer in the industry, Keppel Verolme supports

exposing students to the workings of the industry, so as to spur their interest in it. This will help grow our future talent pool.” keppelite

Students of elementary schools in Rotterdam trying their hand at building a miniature model cruise vessel at Keppel Verolme’s Tech2Do booth

Warm tidingsBrasFELS volunteers and members of its Trainee E n g i n e e r s A l u m n i programme shared the joy of Chr i s tmas wi th chi ldren and elderly in Angra dos Reis, Rio de Janeiro.

On 19 December 2015, c h i l d r e n f r o m t h e neighbourhood of Lambicada awoke to more than 500 toys and gifts donated by volunteers from BrasFELS. The gifts were distributed at a Christmas celebration with

brightly coloured mascots and cake.

Separately on 20 December 2015, 29 elderly residents of Residencial Vila Viver received Christmas cheer from volunteers at BrasFELS

who brought essential items donated by more than 240 employees at the shipyard.

“We’re glad that our elderly friends were very happy to see us. This initiative strengthened my view that simple things like having a conversation, walking together or even a simple smile can make a world of difference for the elderly,” said Leon Ribeiro, Engineer in the Cost department, membe r o f B r a s FELS ’ Alumni programme, and one of the organisers of this social action at Residencial Vila Viver. keppeliteVolunteers from BrasFELS spent time with the children from the neighbourhood of Lambicada (left) and elderly at Residencial Vila Viver (right)

and celebrated Christmas with them

48 Nurturing Communities


Caring for the communityOver the months of November and December, Keppel Land staff in Singapore, Vietnam and Myanmar organised activities to bring smiles to the less fortunate.

SINGAPOREKeppel Land participated in the Metropolitan YMCA’s MY Blessings community o u t r e a c h e v e n t o n 18 December 2015. Eleven staff volunteers took part in the event, distributing goodie bags and food items to over 150 needy families, to spread cheer during the Christmas season.

Els ie Lee, Conf ident ia l S e c r e t a r y, a t K e p p e l Land, said, “It was such a humbling and heartwarming experience to be able to do something meaningful for the less fortunate during this season of giving.”

In a separate event, staff from Keppel Land and Keppel Infrastructure joined hands in a donation drive to collect secondhand toys and games for children from low-income families residing in the Marine Terrace precinct. The hard work of the volunteers yielded 183 toys,

Staff from Keppel Land and Keppel Infrastructure banded together to collect secondhand items for children from underprivileged families

Keppel Land participated in Metropolitan YMCA’s MY Blessings community outreach event where staff volunteers distributed goodie bags and food items to spread Christmas cheer



educational game sets and stationery items which were subsequently distributed to the beneficiaries.

In another initiative, Keppel Land’s Project Management and Sustainable Design Unit spearheaded a bento-making session with the elderly residents of Ren Ci Nursing Home. Over 20 Keppel Land staff took part in the initiative to brighten up the lives of the beneficiaries.

VIETNAMSedona Suites Hanoi held its annual charity bazaar on 5 December 2015, which saw residents donate secondhand items to raise money for charity. Sedona staff also rallied with the hotel’s business partners to canvass for donations in cash or in-kind.

The event saw over 600 members of the public lend thei r support for the event. Proceeds from the bazaar were used to purchase powdered milk, diapers and clothes for Thuy An Orphanage in Ba Vi district, which houses children with disabilities and underprivileged families. The items were then delivered to the orphanage by the volunteers.

MYANMARSedona Hote l Yangon held a charity drive from

1 November to 31 December 2015 in support of Grace Home, a local orphanage for children aged three to 18. The hotel sponsored over 350 teddy bears, which were then sold to raise funds for the orphanage. The activity raised over US$3,500, which was then used to purchase educational materials and basic necessities for the children.

The hotel also sponsored gifts for chi ldren, and distributed these to them during their visit to the hotel on 19 November 2015. keppelite Mr Saman Sarathchandra (foreground, in brown jacket), Senior GM at Sedona Suites Hanoi,

led a team of volunteers to deliver donated items to Thuy An Orphanage in Ba Vi district

Mr Mok Kok Meng (right, in suit), GM of Sedona Hotel Yangon, distributed goodie bags to the children of Grace Home on behalf of the hotel

50 Nurturing Communities


Bringing festive cheerVolunteers from Keppel Te lecommunicat ions & Transportat ion (Keppel T&T) spent the afternoon of 17 December 2015 spreading the warmth of Christmas with 30 primary school children from needy families under Fei Yue Student Care Centre.

The children were treated to McDonald’s Happy Meals and joined volunteers for party games, filling the restaurant with laughter and good cheer. This was followed by a surprise appearance by Keppel T&T’s own Santa

Claus and Santarina who rounded off the eventful

Volunteers from Keppel T&T spread the Christmas spirit with bright-eyed children from Fei Yue Student Care Centre at its ‘Wish Upon an Xmas Tree’ CSR event

Sharing culinary delightsTo celebrate the Christmas spirit of giving and sharing, S ino-S ingapore T ian j in Eco-City Investment and Development Co., Ltd. (SSTEC), Tianjin Eco-City

Volunteers Assoc iat ion a n d E c o - C i t y L O H A S Cooking Studio jo int ly organised a gastronomical g e t - t o g e t h e r f o r t h e community.

Residents of the Sino-Singapore Tianjin Eco-City gathered in mirth over the sharing of Chinese and Singaporean cuisines

T h e m e d C h i n e s e -S i n g a p o r e a n C u i s i n e Exchange, the gathering aims to foster neighbourliness and harmony among residents from the Sino-Singapore

Tianjin Eco-City through the sharing of scrumptious treats. Local delights such as Bak-Kut-Teh and Rojak were dished out alongside popular Chinese dishes, such as the dumpling.

Over 20 residents participated in the event, where they not only enjoyed lively interaction through the sharing of food items, but learnt healthy dietary and cooking tips from nutritionists. keppelite

afternoon by distributing sweet treats and presents

that were donated by Keppel T&T volunteers. keppelite


Keppelite I January 2016Keppelite I January 2016

Keppelites donated nearly 400 bags of blood in a drive organised by Keppel Volunteers and the Red Cross

Season for giving Keppel Volunteers wrapped up 2015 in the season of giving, bringing joy and cheer to children and elderly beneficiaries, as well as giving the gift of life during a blood donation drive with the Singapore Red Cross.

HO-HO-WHOLESOME FESTIVITIESWhen Santa arrived together with 21 Keppelites to bring festive cheer at the KK Women’s and Children’s Hospital on 11 December 2015, he found only nice children all around. The visit, organised by Keppel Vo l u n t e e r s , b r o u g h t an afternoon filled with p re sen t s and ba l l oon s cu l p t i ng t o ch i l d ren aged one to 14 and their families at five wards in the hospital.

“When I saw the excitement and joy on the faces of the children, I was glad to have played a part in such a meaningful activity,” shared Michelle Ng from Keppel Infrastructure.

CELEBRATIONS WITH SENIORSIn two separate events with the elderly from Thye Hua Kwan Moral Society (THK), Keppel Volunteers dug deep into their hidden talents to bring the gifts of nature and song.

Armed with gardening tools

and green fingers, Keppel Volunteers joined 40 elderly for a terrarium workshop held at the Keppel Leadership Institute at Keppel Bay Towers on 5 December 2015. Unleashing their creativity, the volunteers and elderly tenderly combined colourful plants, sand and decorative elements to create beautifully potted terrariums.

At a separate Christmas party on 12 December 2015, 18 Keppel Volunteers a n d 7 5 e l d e r l y f r o m Bedok THK ushered in the Christmas spirit with a hearty karaoke session. Volunteers and elderly alike sang their hearts out to tunes from their favourite Ch r i s tmas c a ro l s and evergreen hits in different dialects.

GIFT OF LIFESupporting the efforts of the Singapore Red Cross, Keppelites gave the precious gift of life by donating blood in December. This is when blood stock levels at the Health Sciences Authority’s Blood Bank are typically lower as less donors come forward over the holiday season.

The blood donation drive spanned five days and five locations, including new outreach venues such as Arcadia Lodge.

“Over the past seven years, Keppe l i t e s have been contributing to the Red Cross Blood Donation Drive to help meet dire needs during June and December. We have expanded our reach this year to engage and include our foreign colleagues who

have been responsive in showing care for others in the community,” shared Teh Ming Ching, Executive C o m m i t t e e M e m b e r from Keppel Volunteers, who oversaw the blood donation drive. keppelite

Keppel Volunteers play Santa and elves to bring festive cheer to children at the KK Women’s and Children’s Hospital

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Keppel Offshore & Marine secures contracts from repeat customers

Keppel Offshore & Marine (Keppe l O&M) ’s l o ca l and overseas subsidiaries continue to win strong s u p p o r t f r o m r e p e a t customers by securing four contracts worth a total of about $125 million.

In Singapore, Keppel O&M’s wholly-owned subsidiary Keppel Shipyard secured two conversion contracts – the first is for a Liquefied Natural Gas (LNG) Floating Storage Unit (FSU) vessel awarded by Armada Floating Gas Storage Limited, a wholly-owned subsidiary of Bumi Armada Berhad (Bumi Armada); the second is for a Floating Production Storage and Offloading

(FPSO) vessel awarded by Yinson Production (West Africa) Pte Ltd (Yinson), a wholly-owned subsidiary of Yinson Holdings Berhad.

Work on the LNG FSU c o n v e r s i o n f o r B u m i Armada is scheduled to be completed in 3Q 2016. Upon completion, the LNG FSU vessel will operate at the Delimara LNG Regasification Terminal in Malta.

As for the FPSO conversion for Yinson, work is expected to commence in 1Q 2016. Upon completion, the FPSO will be deployed to the Offshore Cape Three Point block located in offshore Ghana.

Mr Chow Yew Yuen, CEO of Keppe l O&M, sa id , “E v en i n c ha l l eng i ng market condit ions, we are glad to be the choice yard for operators. This is the 14th conversion/upgrading project that we are undertaking for Bumi Armada. It is also their first LNG FSU conversion project and we are proud to be their trusted partner again. The confidence shown in us is a reflection of Keppel’s proven track record in delivering quality products competitively, with high standards of safety and to customers’ satisfaction.

“We are also grateful for the opportunity to support Yinson again on a conversion project. Having worked with them on an FPSO project in 2012, we will be able to leverage the past experience and close relationship to fast-track this project to meet their requirements.”

As fo r Keppe l O&M’s overseas yards, Keppel FELS Brasil’s BrasFELS shipyard in Rio de Janeiro, Brazil, secured a FPSO integration c o n t r a c t a w a rd e d b y MODEC Offshore Production Systems (Singapore) Pte Ltd. (MODEC), while Caspian Shipyard Company in Baku, Azerbaijan, secured a barge enhancement contract

awarded by BP Exploration (Shah Deniz) Limited (BP), operator of the Shah Deniz gas field development.

For MODEC’s contract, BrasFELS will be carrying o u t i n t e g r a t i o n a n d commissioning works on the FPSO vessel, Cidade de Caraguatatuba MV27. Cidade de Caraguatatuba MV27, which i s to be deployed in the Lapa field, Santos Basin, Brazil, will depart from Keppel Shipyard and arr ive at BrasFELS in 2Q 2016. In the past five years, BrasFELS has successfully completed five FPSO projects safely and ahead of schedule, of which three were for companies affiliated to MODEC.

For BP’s contract, Caspian Shipyard Company will be strengthening the steel structure of the hull of STB-1 Vessel, a purpose- built jacket transportation and launch barge. This is the third time that Caspian Shipyard Company has been chosen to ca r r y ou t re fu rb i shmen t o r enhancement works for STB-1 Vessel. Once the hull strengthening work is completed, STB-1 Vessel will be deployed to transport and launch two jackets for the Stage 2 development of the Shah Deniz field. keppelite

Work on the FPSO vessel, Cidade de Caraguatatuba MV27 (pictured in the foreground on the right at Keppel Shipyard, Tuas), leverages the synergy of Keppel’s network of yards. After module integration work at Keppel Shipyard in Singapore, the vessel will depart for BrasFELS for further integration and commissioning works in 2Q 2016

first jackup delivery for 2016 - keppellandchina.com › uploads › 01_january_2016.pdfsustaining...

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