keppelite february 2013 issue - tj giavridis marine services co. ltd.

172539ContentsSUSTAINING GROWTHRobust results 4Poised for the future 7Financial resilience 11Navigating with fortitude 14Growing with China 17Tianjin blossoms 18Ties that bind 19Special FocusOn track for record deliveries 20Mark of excellence 24Strengthening partnershipsAdvancing in Wuhu 25Bolstering leadership 26Progress in Perth 27Forging tiesSustainable developer 28Shaping industry agenda 29Spurring innovation 30EMPOWERING LIVESSharing best practices 31Broadening skill setsNurturing bicultural leaders 32Time for talents 33Keppelites AbroadCamaraderie in the Philippines 34Sporting friendship 35Joyous rhythm 36Victorious debutUshering in good tidings 37Living her mother’s dreamNURTURING COMMUNITIESGet going for good 38Keppel VolunteersWarming hearts 39BACK PAGESeizing growth opportunities 40Cover image: Christening the twin KFELS B Class jackup rigs, Transocean Andaman and Transocean Siam Driller on 2 February2013 are Lady Sponsors Mrs Duantem Voradejviseskrai (seated, on left) and Mrs Lamiad Charoensaeng (seated, on right),Mr Masagos Zulkifli (back row, third from left), Senior Minister of State, Ministry of Home Affairs and Ministry of ForeignAffairs, Mr Choo Chiau Beng (back row, second from left), CEO of Keppel Corporation and Chairman of Keppel Offshore &Marine (Keppel O&M), Mr Tong Chong Heong (back row, third from right), CEO of Keppel O&M and Mr Chow Yew Yuen(back row, second from right), COO of Keppel O&M.eppelPublished 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 AdvisorWang Look FungEditorSue Ann HuangEditorial CommitteeAng Lai Lee, Carol Huang, Casiopia Low, Chan Suan Sim, Cheryl Goh, Chew Chong Peng, Clement Lim, Diana Chan, Donald Sng, Eileen Tan, Elizabeth Widjaja, Eva Ho,Frances Teh, Grace Chia, Hayley Teo, Hoo Yao Lin, Ivana Chua, Jocelyn Chan, Karin Xiao, Lee Chin Siang, Lee Wan Jun, Li Zhen Bei, Liang Hui Hui, Lim Xuehui, Ng Boon Hwee,Priscilla Chong, Razali Maulod, Roy Tan, Serena Toh, Teri Liew, Tracy Pham, Vett Ramos, Woon Pek Yong, Yolanda Guo, Yu ZehanKeppelite I February 2013CO REG NO: 196800351N

EditorialDelivering excellenceWhen Keppel FELS delivered 13 offshorerigs in 2009, it was considered a record feat thatmany had not expected to be repeated so soon,especially when the world was then in recessionand new orders were drying up. Keppel Offshore& Marine (Keppel O&M) only had $1.7 billion innew orders that year.Just two years later, Keppel O&M secured contractsamounting to $10 billion for the year, a new recordwhich was repeated in 2012. The result is that, in2013, Keppel O&M will deliver an unprecedented46 projects, of which 20 will be delivered byKeppel FELS.For Keppel, it is not just about breaking recordsbut about doing things better and safer. It is aboutconstantly challenging ourselves to exceed ourcustomers’ expectations.The world economy, though, continues to bevolatile. This compels rig owners to be budgetconscious,and value the timely delivery of theirrigs so that they can be promptly deployed.With a record number of rigs ordered worldwide,equipment costs are escalating. There is also ashortage of skilled labour worldwide. In Singapore,the government is presently looking to tighten theinflux of foreign labour which make up a significantportion of the yards’ workforce. Post Macondo,safety regulations are even more stringent, withrigorous safety audits required. As the shippingmarket declines, there is also increased competitionfrom shipbuilding yards in China and Korea lookingto enter the offshore rig-building market.Amid this challenging scenario, Keppel FELS hascontinued to secure new orders while deliveringrigs on time. The yard has already delivered fourrigs this year with perfect safety records and aheadof schedule, some even as much as a month early.(See Special Focus)We are off to a good start but to achieve this newrecord will be no mean feat.Process improvements in our rig constructionhave been put in place in tandem with facilityenhancements. Our yards have been efficientlylaid out like assembly lines, significantly reducingthe time it would take to build a jackup rig. Withmost rigs being built to Keppel’s proprietary design,we have better control and can reap efficienciesthrough replication of the construction process.More automation has also been introduced,reducing the dependence on unskilled labour.Even as our yards work toward the deliveries, safetyremains our top priority and this is reinforced bynew initiatives such as the Keppel Group SafetyTarget 2013 which aims to reduce incident ratesby at least 20% and achieve zero fatality.Keppel continues to win strong votes of confidencefrom customers over the years because of ourreputation for delivering quality products on time,on budget and in a safe manner. In a year whichwould see unprecedented deliveries, we have theopportunity to showcase our mettle, exactingexecution and collective strength, proving to ourcustomers that we are indeed the provider ofchoice, with a clear lead from our competitors.The need to safeguard our reputation as a marketleader of quality products with timely deliveriesmust reverberate across companies in the KeppelGroup. Whether in infrastructure or propertyprojects, we are only as good as our last project.Even as we set new records, we must deliver onour promises.Keppelite I February 2013

4 Sustaining Growth GrowthRobust resultsAmidst an uncertain macro environment, Keppel Corporation leveraged its corecompetencies and capitalised on opportunities to achieve another year of sterlingperformance.Senior management presented another year of record net profitThe Group performedw e l l i n 2 0 1 2 d e s p i t ethe challenging globalenvironment. Group netprofit including revaluation,major impairment anddivestments increased 15%to reach $2,237 million whileEarnings per Share rose by14% to 124.8 cents. Returnon Equity was 26.4% whileEconomic Value Added was$1,430 million, an increaseof $592 million from 2011.Full year 2012 Grouprevenue of $13,965 millionwas 39% higher than in2011. Revenue from theOffshore & Marine Divisionwas $7,963 million, 40%above that of the previousyear due to higher volumeof work. The Divisioncompleted and deliveredtwo semisubmersible rigs,one semisubmersible rigupgrade, four jackup rigs,one Multi-Purpose Self-Elevating Platform, onedrillship outfitting, fourFloating Production Storageand Offloading (FPSO)conversions/upgrades, oneFPSO module fabricationand integration, one FloatingStorage Unit upgrade, onepipelay vessel completion,two specialised vesselsand several upgrade/repairprojects.R e v e n u e f r o m t h eInfrastructure Divisiondecreased slightly by$31 million or 1% to$2,832 million. Lowerrevenue from Engineering,P r o c u r e m e n t a n dConstruction contractswas partly offset by higherrevenue generated from theco-generation power plant inSingapore.Revenue from the PropertyDivision of $3,018 millionwas 106% above that of2011. The lumpy revenuewas mainly due to highercontributions fromReflections at Keppel Bayfollowing the delivery ofresidential units sold underthe deferred paymentscheme. This high level ofrevenue is not expected in2013 as revenue recognitionfrom sale of Reflections atKeppel Bay units is expectedto be lower.At the pre-tax level, GroupKeppelite I February 2013

Sustaining Growth 5KEPPEL CORPORATIONIncluding revaluation, majorimpairment and divestmentsExcluding revaluation, majorimpairment and divestments(S$’m) 2012 2011 % Change 2012 2011 % ChangeRevenue 13,965 10,082 39 13,965 10,082 39Operating Profit 2,621 2,824 -7 2,396 1,897 26Profit before tax 3,256 3,312 -2 2,695 2,177 24Net Profit 2,237 1,946 15 1,914 1,491 28EPS 124.8 109.4 14 106.8 83.8 27profit of $3,256 million was2% lower than in 2011.Pre-tax earnings from theOffshore & Marine Divisiondecreased by 13% to$1,193 million, due to rigbuilding contracts withlower margins. Profit fromthe Infrastructure Divisioni n c re a s e d b y 6 6 % t o$59 million as a result ofbetter performance fromKeppel Energy, partly offsetby losses from KeppelIntegrated Engineering.Profit from the PropertyD i v i s i o n d e c r e a s e df ro m $ 1 , 8 7 5 m i l l i o nt o $ 1 , 8 0 9 m i l l i o ndue to a lower net fairvalue gain on investmentproperties, partly offset byhigher contributions fromassociated companies andReflections at Keppel Bay.Taxation expenses wereup 13% because of the higherprofit from Keppel Bay. Noncontrollinginterests were44% or $405 million lower,mainly due to a lower minorityshare of net fair value gainon investment properties.After taking into accountincome tax expensesa n d n o n - c o n t r o l l i n ginterests, net profit was$2,237 million, 15% higherthan the previous year’s.The Property Division wasthe largest contributor to netprofit, contributing 48% ofnet profit. Net fair value gainson investment propertiescontributed 13% of net profit.Offshore & Marine Divisioncontributed 42% to netprofit. Infrastructure Divisionand Investments made up theremaining 10%.PROSPECTSThe Offshore & MarineDivision secured $10 billionof new orders in 2012.Continues on page 6...With a net orderbook of $12.8 billion as at end 2012, Keppel yards will focus on execution excellence to deliver the projects safely, on time and within budgetKeppelite I February 2013

6 Sustaining Growth...continued from page 5.In 2012, Keppel REIT raised its stake in Ocean Financial Centre to 99.9%The net orderbook stoodat $12.8 billion as at31 December 2012, withdeliveries extending into2019.The long-term fundamentalsfor the offshore and marineindustry remain good,underpinned by growingenergy demand fromdeveloping economies.Demand for rigs isexpected to remain strongin view of an ageing fleetworldwide, a preference fornewer rigs and increasingdemand in many partsof the world, particularlyBrazil, Africa, the NorthSea and the Gulf of Mexico.The Division will continueto focus on executing theprojects on-hand well,improving the competenciesand productivity of its yards,and exploring value-addingacquisitions.In the Infrastructure Division,the 800MW expansion ofthe Keppel Merlimau Cogenpower plant is on trackfor commercial operationin 2013, enabling KeppelEnergy to meet the growingdemand in the Singaporeenergy market. KeppelIntegrated Engineeringcontinues to selectivelypursue opportunities in itstarget markets. Keppel T&Twill seek opportunities toexpand its logistics businessand assess opportunitiesfor further acquisitions ofdata centres.The Property Division soldabout 430 residential unitsin Singapore for the year,mostly from The Luxuriein Sengkang. The Divisionacquired a prime residentialsite near Tanah Merah MRTstation in October 2012,which will yield about 700residential units.The Singapore governmentintroduced the seventh roundof measures in January 2013to further cool the residentialmarket. These measureshave dampened sentimentsand are likely to weigh downthe market.Overseas, the Division soldabout 1,900 residentialunits for the year, of whichChina accounted for about1,650 units. In December2012, the Division securedits fifth site in Wuxi for amixed-use development. The6.6-ha prime city-centre sitewill comprise about 1,135residential units coupled withcommercial components.T h e G r o u p ’ s f u n dmanagement businesscontinued to grow throughselective acquisition anddivestment opportunities.In 2012, Keppel REITexpanded its portfolio withthe acquisition of a 50%stake in a new Grade Aoffice development in Perth,Australia and raised itsstake in Ocean FinancialCentre to 99.9%. AlphaAsia Macro Trends Fund II,which is managed by AlphaInvestment Partners, acquireda 50% stake in 78 ShentonWay and 17 high-endresidential units at 8 Napierin 2012. The Group’s totalassets under management byKeppel REIT and Alpha havegrown to $15.3 billion at theend of 2012.Moving forward, the PropertyDivision will focus on itscore markets of Singaporeand China, and strengthenits position in Vietnamand Indonesia. It will alsocontinue to grow assetsunder management forsustainable income.The global economy remainschallenging with unresolvedfiscal cliff issues faced bythe United States economyand uncertainties over theEurozone debt crisis. Againstthis backdrop, the Groupwill continue to sharpen itscompetencies and fortifyits capabilities to navigatethe challenges. keppeliteKeppelite I February 2013

Sustaining Growth 7Poised for the futureAt Keppel Corporation’s FY 2012 results press and analyst conference on 24 January2013, CEO Mr Choo Chiau Beng touched on the Group’s developments in 2012, andhow the Group is shaping the future. Keppelite reproduces his speech.DELIVERING VALUEI am pleased to announcethat Keppel Corporation hasachieved another creditableyear in 2012. Excludingrevaluations, our net profitgrew by 28% to a high of$1.9 billion. Our Return onEquity remained healthyat 22.6%. Economic ValueAdded also grew to about$1.4 billion for the year.The Board of Directors willbe recommending a totaldistribution of 72.4 cents pershare to shareholders for thewhole year. This comprisesthe interim dividend of18 cents per share, aproposed final dividend of27 cents per share, anda proposed dividend inspecie of Keppel REIT unitsequivalent to 27.4 cents.CHALLENGING GLOBALTERRAIN2012 was a difficult yearas the global economy wasfraught with uncertainties.At the start of 2013, theUnited States (US) managedto stave off a fiscal cliff withinterim measures but growthprospects remain sluggish.Over in the EuropeanUnion (EU), efforts madewere not enough to pulleconomies out of the mire.The unresolved EurozoneKeppel Corporation CEO, Mr Choo Chiau Beng in a robust discussion with media and analystscrisis will continue to cast ashadow over 2013.With the modestimprovements in the fourthquarter, Singapore avoided arecession and is expected torecord a 1.2% GDP growthfor the whole of 2012.Meanwhile, China and mostof Asia were affected byweak export demand fromthe EU and US. For the mostof 2012, Brent crude hoveredabove US$100 a barrel.In shaping Keppel’s future, we willbuild on our core strengths andharness human, knowledge andfinancial capital. We have to investfurther in our human capital andmaintain a safe work environmentfor our people. We will also givemore responsibilities to the youngand able, grooming them to takeover leadership roles in the Group.Mr Choo Chiau Beng,CEOKeppel Corporation2013 is expected to be anextension of previous years, Continues on page 8...Keppelite I February 2013

8 Sustaining Growth...continued from page 7.and filled with uncertaintiesand potential risks. However,in navigating such anenvironment, there will alsobe ripe opportunities foracquisitions.This year, Keppel Corporationcelebrates 45 years of growth.We have laid firm foundationsthat have allowed us todeliver creditable resultsyear on year, as well asemerge stronger throughevery challenge. Against thestrong headwinds, we willremain resilient and agile,as we have been over fourdecades.SHAPING THE FUTUREOffshore & MarineStaying focused on nichesegments of the offshoreand marine industry hasallowed us to pursue ourNear Market, Near Customerstrategy, and define our edgein areas where we choose tocompete.Our core strengths – aglobal network of 20 yards,robust technology andexecution competencies –have propelled the Group’sgrowth in the last decade,as we continue to reapthe rewards of ourinvestments.For the whole of 2012,Keppel Offshore & Marine(Keppel O&M) secured$10 billion in contractsfrom customers acrossBrazil, the Caspian Sea andMexico. This brings our netorderbook to $12.8 billionas at end-December 2012,with visibility into 2019. In2013, we will be completinga record of 22 newbuildunits, which we aim to deliveron time, on budget andsafely to our customers.T h e w o r l d ’s s w e l l i n gdemand for energy continuesto drive Exploration &Production (E&P) into newfrontiers which are deeperand harsher. Political pressurehas also nudged governmentsof emerging countries toquickly exploit their own oiland gas resources.Stable Brent crude pricesof above US$100 perbarrel continue to supportindustry capital expenditurefor sizeable discoveries inthe Gulf of Mexico, theNorth Sea, Brazil andAfrica. Scaling new frontiersrequires highly advancedsolutions; therefore, weexpect global E&P spendingto rise further.Meanwhile, keen rivalryfrom Chinese and Koreanyards have suppressedp r i c e s a n d s q u e e z e dmargins on newbuilds. AtKeppel, we will continue todistance ourselves from thecompetition. We will secureour stronghold in both keyand emerging oil and gasmarkets, as well as furtherimprove the productivity ofall our yards.Our Asian network of yardsacross the Philippines,Indonesia and China hasbeen assisting the Singaporeyards with offshore work.I am happy that some ofthem have garnered theconfidence of internationalThe BrasFELS yard in Brazil bolsters the Group’s Near Market, Near Customer strategyKeppelite I February 2013

Sustaining Growth 9Jilin Food Zone InternationalLogistics Park and embarkedon its second logistics hub inAnhui. It also expanded intoIndonesia to provide servicesfor the local consumer andretail goods sector.Maintaining its pace ofgrowth in data centres,the company acquired twomore facilities in the UKand Malaysia respectively.In addition, it is investinganother US$50 million as partof the Securus Data PropertyFund’s second capital raising.This will make Keppel T&Tthe single largest shareholderof the Fund.Keppel Wanjiang International Coldchain Logistics Park in Lu’an City will be Keppel T&T’s second logistics project in Anhuioperators and drillers. KeppelSubic Shipyard, for instance,was recently engaged byShell to build a DepletionCompression Platform thatwill support the recoveryof natural gas from theMalampaya gas field in thePhilippines. This adds tothe yard’s growing offshoretrack record, which includesdrillship upgrading and otherconversion work.Contracts like these arethe fruition of sustainedinvestments to equip oursatellite yards for biggeroffshore contracts. Suchefforts will help to ease theforeign labour constraint thatwe are facing in Singapore.To fortify our leadingposition, we will alsocontinue to partner trendsettingcustomers to innovatesolutions for new offshorefrontiers, and sharpen ourtechnological know-how.The Front-End Engineeringand Design study that weare doing for Golar’s FLNGprojects is a good exampleof our holistic partnershipwith customers from startto finish.InfrastructureWithin our InfrastructureDivision, we have chosen tooffer sustainable solutionsfor power generation,environmental engineeringand business connectivity.We are mindful of selectingonly projects that are valueenhancing.Keppel Energy has donewell in keeping up theefficiency of its power plantoperations on Jurong Island.The 800MW expansion is ontrack for completion by mid-2013, and will soon add tothe Group’s recurring incomestream.K e p p e l I n t e g r a t e dEngineering is focused onexecuting and deliveringits United Kingdom (UK)projects despite challenges.During the year, it alsocommenced work on a newWaste-to-Energy combinedheat and power project inPoland and expanded itsdistrict cooling capacities inSingapore.M e a n w h i l e , K e p p e lTelecommunications &Transportation (Keppel T&T)has been growing its logisticsbusiness. In 2012, it startedwork on the Sino-SingaporeUrbanisation along withinfrastructure developmentwill continue to be a majorgrowth driver for mostemerging economies. Ournascent infrastructurebusinesses are deepeningtheir roots and will focus onhoning expertise, efficiencyand execution in scalablebusinesses.PropertyIn the Property Division,Keppel Land sold 2,350homes across the region,leveraging its quality trackrecord and experience.Notably, homes sold atReflections at Keppel Baystrongly boosted our propertyprofits for the year.The company continuedto grow its land bankselectively, adding fourquality residential sitesi n C h i n a , S i n g a p o r eContinues on page 10...Keppelite I February 2013

10 Sustaining Growth...continued from page 9.and Sri Lanka. It alsostrengthened its commercialportfolio and embarked onfour office and mixed-usedevelopments in China,Indonesia and Vietnam.Meanwhile, Keppel REITand Alpha InvestmentPartners’ combined assetsunder management grew to$15.3 billion.Urbanisation trends and lowinterest rates are drivingstrong demand for qualityhomes and office spaces inAsia. Singapore hit a recordhigh of 21,600 homes soldlast year. New private homeprices were also lifted byrobust demand for massmarket homes in suburbanareas.Earlier last month, thegovernment announced itsseventh wave of coolingmeasures. This, coupledw i t h t h e r i s k y g l o b a leconomy, and a fairly bigsupply of newly completedunits, is likely to depress themarket.Meanwhile, Singapore’soffice market was resilientwith a deceleration in Grade Aoffice rental corrections andlow vacancy levels, especiallyin Marina Bay. The sector’soutlook remains encouragingwith Singapore’s growingattractiveness to financialinstitutions and regionalhead offices.In China, residential volumesa n d p r i c e s h a v e a l s orecovered slightly. The newChinese leaders are expectedto maintain a tight rein overproperty speculation andprices, balancing coolingmeasures with economicgrowth.The global uncertaintiesremain the biggest risk tothe Asia Pacific’s propertysector. However, given theregion’s rising urbanisationand wealth, industryf u n d a m e n t a l s r e m a i npositive in the mid-to-longterm. Improved liquidityand availability of cheapfinancing options will alsosupport growing officevalues in the region.Moving forward, we willleverage our regionalpresence and Keppel’sbrand value to acquire goodsites and grow our assets.Keppel Land has built up astrong balance sheet withlow gearing, which willenable it to seize the rightopportunities when theyarise.We will also harness ourexpertise in developing andmanaging homes, officesand mixed-use propertiesto enhance our valueproposition, as well as furtherimprove the quality andperformance of our assets.PeopleIn shaping Keppel’s future,we will continue to buildon our core strengths andharness human, knowledgeand financial capital. Wehave to invest further in ourhuman capital and maintaina safe work environment forour people.W e w i l l g i v e m o r eresponsibilities to the youngand able, grooming them totake over leadership roles inthe Group.Last year, Mr Teo Soon Hoehanded over his role asCFO smoothly to Mr LohChin Hua. Mr Chow YewYuen was promoted asKeppel O&M’s COO, whileMr Michael Chia andMr Wong Kok Seng wererespectively made MDs ofits Marine and Offshoredivisions. Mr Chor How Jatwas promoted to MD ofKeppel Shipyard. At thestart of this year, Mr AngWee Gee was appointedas CEO of Keppel Landfollowing Mr Kevin Wong’sdeparture.Reflections at Keppel Bay is an iconic and award-winning waterfront property in Singapore (Photo credit: Woh Hup)With these key positionsanchored by experiencedpeople embracing Keppel’score values, I am confidentthat the Group will continuecreating sustainable value forour shareholders. keppeliteKeppelite I February 2013

Sustaining Growth 11Financial resilienceWith strong financial discipline, Keppel will be resilient in navigating throughvolatility and strategic in seizing opportunities. Keppelite reproduces CFO Mr LohChin Hua’s speech at the FY 2012 results press and analyst conference.CFO Mr Loh Chin Hua highlighted the Group’s financial strength and prospects at the FY2012 results press and analysts conferenceAs we celebrate our 45thanniversary this year, I ampleased to report that theGroup has delivered anotherset of record results for thefull year. 2012 was a yearof strong growth for theGroup as our full year netprofit rose by 28% to hita record $1.9 billion. If weinclude revaluation gains,major impairment anddivestments, our net profitwas $2.2 billion, 15% abovelast year’s.The credit market in 2012was relatively benign,and the low interest rateenvironment allowed us totap the debt capital marketat competitive terms and forlonger tenures. As a Group,we raised about $1.8 billionin medium to long datedbonds to position ourselvesto seize value-enhancingopportunities in our corebusinesses.We ended the year with a netgearing of 0.23x. Weightedaverage tenor of our loanbook was termed out fromaround three years at thebeginning of 2012 to overfive years at the end of theyear with only a marginalincrease of less than 20basis points in average costof funds.FREE CASH FLOW2012 saw robust cash flowof $2.6 billion generatedfrom operations. This wasa significant increase ofabout $500 million from theprevious year.Although higher workingcapital requirements fromthe Work in Progress at boththe Offshore & Marine andProperty Divisions consumedabout $1.45 billion of cash,net cash from operationsimproved from negative$224 million in 2011 topositive $1 billion in 2012.The Group spent $1.3 billionon acquisitions and capitalexpenditure (capex). Thispertains mainly to capexfor the expansion of KeppelMerlimau Cogen (KMC)p l a n t , i n v e s t m e n t s i nassociated companies andother operational capex.After taking into accountd i v i d e n d i n c o m e a n ddivestment proceeds of$254 million, net cash usedin investing activities was$1.07 billion. The resultantcash outflow was $63 millionfor the year.BUSINESS REVIEW &OUTLOOKOffshore & MarineGlobal energy demand isexpected to continue rising,driven primarily by populationgrowth and increasedurbanisation in developingcountries. In line with therising energy demand,Exploration & Productionspending is expected toincrease further.This quarter saw $1.1 billionworth of new orders won byour strong global network ofyards. The Division ended theyear well with new orders of$10 billion and a robust netorderbook of $12.8 billion asat end 2012, with deliveriesextending through to 2019.Continues on page 12...Keppelite I February 2013

12 Sustaining Growth...continued from page 11.The Group’s consistent growth in earnings and creditable ROE and dividend are testament to its financial strengthSuccessful deliveries madeby Offshore & Marine in thequarter reflect our strongtrack record of qualityproject execution. Withrecord deliveries expectedin 2013, we will continueto focus on enhancing ourexecution, engineering anddesign capabilities to sustainour market leadership andfurther distance ourselvesfrom competitors. We willcontinue to increase theefficiency of our yards aswe pursue our Near Market,Near Customer strategy.InfrastructureThe 800MW expansion ofthe KMC is on track for fulloperations in the middle of2013. With the increasedcapacity, Keppel Energy iswell-positioned to meetthe growing demand in theSingapore energy market. Thecompletion of the expansionwill see us operating one ofthe most efficient plants inthe market.K e p p e l I n t e g r a t e dEngineering (KIE) has recentlycommenced work on theWaste-to-Energy (WTE)combined heat and powerplant in Poland. We willleverage on our proven WTEtechnology and experienceto ensure successful deliveryof this project. In light ofthe challenges faced in ourEngineering, Procurementand Construction contracts,KIE will be more deliberateand selective in its pursuit ofnew projects.We will continue to expandour portfolio of energyefficient district coolingplants and selectively pursueFacilities Management andOperation projects locallyand overseas that providesuitable margins with limiteddownside risk.Keppel Telecommunications& Transportation (KeppelT&T) continues to strengthenits presence in China withthe Sino-Singapore Jilin FoodZone International LogisticsPark and the upcomingdevelopment of KeppelWanjiang International ColdChain Logistics Park in AnhuiProvince. These two projectswill further boost KeppelT&T’s capabilities in providinghigh quality and reliable foodlogistics services.Keppel T&T has also expandedits logistics footprint intoIndonesia by partneringPuninar Logistics to provideintegrated logistics servicesfor the consumer productssector.PropertyOur home sales in Singaporehave moderated with theabsence of new launches.However, the sale of 115homes in the quarter fromour existing stock is healthy.In our overseas markets, wesold about 730 homes inthis quarter, primarily fromour properties in China. TheChinese property market maytake a while to fully recoveras its new leaders are notexpected to remove all theproperty cooling measuresso quickly.On the commercial front,w e c o n t i n u e t o s e ehealthy interest in qualityoffice spaces, with strongcommitted occupancy ratesfor MBFC Office Tower 3 andOcean Financial Centre.Keppel REIT continues toproduce good returns from itsportfolio of quality incomeproducingcommercial assets,registering strong growth of79% in distributable incomeand maintaining an almostfull occupancy rate.Alpha Investment Partnershas successfully raisedmore than US$700 millionfor the Alpha Asia MacroTrends Fund II, reflecting theconfidence of institutionalKeppelite I February 2013

14 Sustaining GrowthNavigating with fortitudeKeppelite shares highlights from FY 2012 results briefing’s Q&A session, whichfocused on the Group’s prospects and strategies.ON DIVIDEND IN SPECIECCB: As Keppel REIT is veryclosely held with a free float of25%, the dividend in speciewould allow the units to bemore widely traded. KeppelCorporation’s shareholderswill be rewarded with thesedividend-yielding REIT unitsand would have the flexibilityto keep the units or tradethem for cash.TSH: In terms of cash dividend,we are distributing 45 centsper share, higher than in2011. This cash dividendis further supplementedby dividend in specieequivalent to 27.4 cents pershare. We think that thisis a good balance to have,taking into account that theKeppel REIT units areyielding close to 6%.Analysts and media had the opportunity to engage senior management for insights into the Group’s prospectsON OFFSHORE & MARINETCH: Enquiries are prettyactive and we will make theappropriate announcementwhen new contracts aresigned. We are participatingin tenders and are inactive discussion for othertenders.The Naftogaz contract hasbeen signed but is still subjectto approvals. We are in themidst of discussing terms andconditions. We may acceptthe contract or we may haveto walk away. Keppel willWith a strong focus on technology, Keppel works closely with customers to develop innovative and cost-effective solutionsKeppelite I February 2013

Sustaining Growth 15not take on projects thatdo not create value for ourstakeholders.On the progress of the firstSete Brasil semisubmersible,we have already struck steeland started fabrication inBrazil, Singapore and thePhilippines. We will startrevenue recognition whenwe reach 20% physicalconstruction.In view of the competitionand cost, the long-terms u s t a i n a b l e o p e r a t i n gprofit margins guidanceof 10% to 12% is quitereasonable. Nonetheless,we are continuously strivingto improve margins withincreased efficiency andenhanced productivity.ON INFRASTRUCTURELCH: We have made furtherprovisions for both the DohaNorth Sewage TreatmentWorks and the DomesticSolid Waste ManagementCentre in Qatar, as wellas the Greater ManchesterEnergy from Waste projectsin the fourth quarter of2012. We do not usuallydisclose the total amount ofprovisions made.Phase One of Doha NorthSewage Treatment Works isexpected to be completedlater in 2013 and PhaseTwo in 2014. Phase Oneof the Greater ManchesterEnergy from Waste projectis expected to be completedin 2013 and Phase Two thefollowing year.TCH: We think that sufficientprovisions have been madefor the environmentalengineering projects.ON ACQUISITIONOPPORTUNITIESCCB: We are focused ingrowing our core strengthsor in areas which we havecapabilities. We will alsoventure into adjacencieswhich are very attractive.keppeliteCCB – Mr Choo Chiau Beng,CEO of Keppel CorporationTSH – Mr Teo Soon Hoe,Senior ED of KeppelCorporationTCH – Mr Tong Chong Heong,Senior ED of KeppelCorporation, CEO of KeppelOffshore & Marine, Chairmanof Keppel IntegratedEngineeringLCH – Mr Loh Chin Hua,CFO of Keppel CorporationContinues on page 16...Work has begun for the first of six Sete Brasil’s DSS 38E semisubmersibles, based on enhancement of Keppel’s proven proprietary designKeppelite I February 2013

16 Sustaining Growth...continued from page 15.On an even keelCEO Mr Choo Chiau Beng commented on Keppel’s business outlook in an exclusive interview with CNBCafter Keppel Corporation’s FY 2012 result release.Would 2013 be ableto match 2011 and2012’s record$10 billion of neworders?We will try our bestbut we cannot predictor guide new orders.Fundamentals are intactwith requirements forb o t h j a c k u p s a n ddeepwater rigs. Thereare many different projectsand opportunities that wecan seize.In light of the recentdiscoveries in the Gulfof Mexico, Africa andthe North Sea, are theresufficient investments tokeep the ex-Brazil ordermomentum up?There is enough work tokeep established yardsbusy. Nonetheless, thereis increasing competitiona n d w e w i l l n e e d t omonitor marketdevelopments. We have asuite of good proprietaryrig designs and a proventrack record of deliveringon time, safely and withinbudget which bodes wellfor us.In view of rising costsand introductionof further propertycooling measures,would the PropertyDivision offerdiscounts?We do not need to offerdiscounts for our propertydevelopments.Keppel’s suite of proprietary rig designs and proven track record of delivering on time,safely and within budget put it in good stead to seize opportunities in the offshore andmarine marketKeppel Corporation CEO Mr Choo Chiau BengKeppelite I February 2013

Sustaining Growth 17Growing with ChinaKeppel Land China hasbeen ranked among the“Top 10 ASEAN Companiesin China”. The inauguralaward, organised by theChina-ASEAN BusinessCouncil (CABC), honoursmodel ASEAN companiesfor their economic andsocial contributions inChina.The award ceremony,graced by Mr Xu Ningning,Deputy Secretary General ofCABC, was held at the JWMarriott Hotel Beijing on24 January 2013.Mr Ang Wee Gee, CEO ofKeppel Land and ExecutiveVice Chairman of KeppelLand China, said, “KeppelLand was one of the firstforeign developers to enterChina in the early 90s. Overthe years, we have built astrong foundation in Chinaand have grown in tandemto meet the country’surbanisation needs. Today,China is one of Keppel Land’score markets. Leveraging ourstrong track record in China,we remain committed togrow further with China tomeet the demand for qualityhomes and premium officespaces in key cities whereKeppel is present.“Beyond sustaining growthin our businesses, KeppelLand China is also committedto nurture communitieswherever we operate.As a global citizen, webelieve that as communitiesthrive, we thrive. As such,we strive to give back tocommunities through ourmulti-faceted approachtowards corporate socialresponsibility.”Over the years, Keppel Landhas been expanding itsfootprint in China to over10 cities. To date, theC o m p a n y h a s a t o t a lgross floor area ofabout 7.7 million sm,which translates to about43,000 homes. Keppel LandChina is also an investoras well as developer cumproject manager for theKeppel Group developmenti n t h e S t a r t - U p A re aw i t h i n t h e l a n d m a r kSino-Singapore T ianjinEco-City.In an interview with Chinesemedia following the awardceremony, Mr Ang shared,“Over the years, we havedeveloped strong teamsin the various high-growthcities in China. We haveexecuted projects thathave been profitable, andnurtured good relationshipswith the local stakeholders.We have also built our brandname in these cities andunderstand the market inthese cities well. In the nextfew years, we will continueto grow in the cities wherewe are already present. Weare also looking for newcities with high growthpotential where we canbuild up a strong operatingplatform.”On behalf of Keppel Land China, Mr Ang Wee Gee (centre), CEO of Keppel Land and Executive Vice Chairman of Keppel Land China, receivesthe award for “Top 10 ASEAN Companies in China” from Mr Yu Ping (left), Vice Chairman of China Council for the Promotion of InternationalTrade, and Mr Tan Lui Hai, Counsellor (Economic) of Embassy of the Republic of Singapore in China, at the China-ASEAN Business Councilaward ceremonyCandidates for theaward were assessed onfour key areas – volumeof investment in China;rate of development inChina; contribution to theeconomic development ofthe local community; andphilanthropic efforts. keppeliteKeppelite I February 2013

18 Sustaining GrowthTianjin blossomsSino-Singapore T ianjinEco-City Investment andDevelopment Co., Ltd.(SSTEC), the master developerfor the Sino-SingaporeTianjin Eco-City (TianjinEco-City) project, continuesto make good progress inattracting leading propertydevelopers to participatein the development of theTianjin Eco-City.The Tianjin Eco-City was alsorecently earmarked as one ofthe 90 cities and towns thatwill pilot China’s “Smart City”programme, reaffirming theimportance of the landmarkbilateral project betweenSingapore and China. SSTECis a 50-50 joint ventureformed by a Singaporeconsortium led by the KeppelGroup and Tianjin Eco-CityInvestment & DevelopmentCo., Ltd (TECID), the Chineseconsortium partner.NEW RESIDENTIALDEVELOPMENTMr Ho Tong Yen, CEO ofSSTEC, and Mr Tang Jun, CEOof Beijing Capital Land, signeda framework agreement on18 January 2013 to develop an11.72 ha site located in theheart of the Tianjin Eco-City’sStart-Up Area.The residential project, whichcovers a gross floor area ofapproximately 134,400 sm,is a short 15-minute drivefrom Tianjin Economic-Technological DevelopmentArea, and 45 km fromTianjin’s city centre.The project is near theN a t i o n a l A n i m a t i o nIndustrial Park and next tothe upcoming Shimao-HiltonHotel. It is within walkingdistance to the CommercialStreet, which provides awide range of amenitiesfor residents. Renownedschools, the Tianjin BinhaiForeign Language Schooland Ivy Kindergarten, bothof which commenced classesin September 2012, are alsoimmediately adjacent tothe site.Continues on page 19...Deepening tiesMr Cui Guangzhi, TECIDChairman Mr Wang Weijias well as TECID GMMr Meng Qun.Keppel Corporation Chairman Dr Lee Boon Yang (left) called on Mayor of Tianjin Municipal Government Mr Huang Xingguo (right) andother leaders in a recent trip to TianjinKeppel Corporation seniormanagement, includingChairman Dr Lee BoonYang, CEO Mr ChooChiau Beng, Senior EDMr Teo Soon Hoe andDirector of Group Strategy& Development Mr OngYe Kung, recently visitedTianjin during the LunarNew Year season to conveytheir well wishes to leadersand partners in the TianjinEco-City.The delegation met withMayor of Tianjin MunicipalGovernment Mr HuangXingguo, Chairman ofTianjin Municipal Committeeof the Chinese People’sP o l i t i c a l C o n s u l t a t i v eConference Mr He Lifeng,V ice-Chairman of theSino-Singapore T ianjinEco-City AdministrativeCommittee (ECAC)Senior management alsocelebrated the Lunar NewYear with SSTEC andTianjin-based Keppeliteswith a traditional lo heidinner. At the dinner, DrLee expressed appreciationto all employees for theirhard work during the pastyear.Separately, Keppel seniormanagement hosted agroup of Tianjin officials, ledby Vice-Chairman of ECACMr Meng Xianzhang,during their study visit toSingapore in end January2013.Keppelite I February 2013

Sustaining Growth 19Construction of the projectis expected to commencein mid 2013 and homes areexpected to be launched forsale before end 2013.Beijing Capital Land is alarge, integrated propertydeveloper in China, focusingprimarily on developing andinvesting in high qualityClean and renewable energy sources will be used in the Tianjin Eco-City to supplementtraditional energy suppliesand high-end commercialproperties as well as mediumto high-end residentialproperties. Over the years,Beijing Capital Land hassuccessfully developedmultiple integrated projectsand commercial projectswhich include the BeijingWorld Centre, North RingWorld Centre and FinancialStreet NO.1.SMART CITYOn 29 January 2013, China’sMinistry of Housing andUrban-Rural Development(MOHURD) announced thefirst batch of 90 cities andtowns that will pilot China’s“Smart City” programme.The Tianjin Eco-city wasearmarked to be a part ofthe programme due to itssuccessful implementationof green building, renewableenergy and water treatmentprojects.The cities were selectedbased on nominations andjudging by MOHURD andan expert panel. They will beevaluated by MOHURD afterthree to five years and begraded according to a threestarrating system. Between2013 and 2015, MOHURDwill partner with the ChinaDevelopment Bank toinvest RMB 80 billion in thevarious cities. keppeliteTies that bindKeppel Offshore & Marine(Keppel O&M) hostedMadam Halimah Yacob,Speaker of Parliament,to a luncheon at KeppelO&M on 31 January 2013,in appreciation of hertireless efforts in the labourmovement over the years.Madam Halimah receiveda warm reception fromthe 30-strong seniormanagement team whichincluded Mr Choo ChiauBeng, Chairman of KeppelO&M and Mr Tong ChongHeong, CEO of Keppel O&M,as well as union heads fromthe Keppel FELS EmployeesUnion, Keppel EmployeesSpeaker of Parliament Madam Halimah Yacob (front row, sixth from left) was hosted to a luncheon by the Keppel O&M senior managementteamUnion and the Shipbuilding& Marine EngineeringEmployees’ Union.Also present at the luncheonwas Ms Soh Sor Imm,Deputy Executive Directorof the National TradesUnion Congress (NTUC),who represented the NTUCin acknowledging KeppelO&M’s efforts in engagingthe unions.The event also affirmedKeppel O&M’s supportfor Madam Halimah,who recently became thefirst woman Speaker ofParliament.Thanking her hosts, MadamHalimah said, “I am indeedmost honoured and deeplyhumbled by your warmreception. I will always valueyour friendship, and thiswill make my job as the firstwoman speaker all the morepleasant knowing that I haveyour support.” keppeliteKeppelite I February 2013

20 Special FocusOn track for record deliveriesKeppel FELS is expected todeliver 20 offshore rigs thisyear, a record number forany yard worldwide.The yard is on track for itsrecord-setting year, christeningits first five rigs of 2013 inJanuary. Four of the rigs havealready been delivered, allahead of schedule and withperfect safety records. Thefifth rig is due for delivery atthe end of March this year.For the early completion ofthese rigs, Keppel FELS willreceive bonuses totallingabout US$1.5 million.Mr Chow Yew Yuen, COOof Keppel Offshore & Marine(Keppel O&M) said, “In ayear where Keppel FELStargets to deliver a record20 rigs, we remain committedto go beyond our customers’expectations and providevalue-added services. Weare continually innovatingand improving our processesto increase productivityand safety.”VISION DRILLINGThe first delivery of 2013 isDynamic Vision, a KFELS BClass jackup rig for VisionDrilling, a subsidiary of theDynamic Offshore DrillingGroup. The rig will be VisionDrilling’s first such rig and hasbeen delivered almost twomonths ahead of schedulewith a perfect safety record.At the naming ceremonyheld on 26 January 2013,Guest of Honour, Mr LamYi Young, Chief Executiveof the Maritime and PortAuthority of Singapore(MPA), said, “The offshoreand marine industry is akey part of Singapore’seconomy and we are proudthat Keppel, a home-growncompany, has establisheditself as a global leader inthe design, constructiona n d re p a i r o f m o b i l eoffshore rigs. The successfuldelivery of Dynamic Vision istestament to Keppel’s provencapabilities and the strongindustry partnerships it hasbuilt up.”Mr Wong Kok Seng, MD(Offshore), Keppel O&M andMD, Keppel FELS, added,“We are pleased to be ableto deliver our first rig of2013 two months ahead ofschedule. It augurs well forthe rest of the rigs that weexpect to deliver this year. Wehave a very good partnershipwith Vision Drilling and lookforward to enhancing ourrelationship with them andcontinuing to service India’soil and gas market.”Deepwater Drilling & ServicesPvt. Ltd, an India-basedcompany in the DynamicOffshore Drilling Group,has a five-year charter withFortune 500 India’s NationalOil Company, Oil & NaturalGas Corporation (ONGC) forwork in the western part ofOffshore India.Mr Naresh Kumar, Chairmanof Dynamic Offshore DrillingTouring the rig Dynamic Vision were (front, from left to right) Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman of KeppelO&M, Mr Lam Yi Young, Chief Executive of MPA, Lady Sponsor Mrs Manju Agarwal (back, from left to right) Mr Naresh Kumar, Chairmanof Dynamic Offshore Drilling, Mr Chow Yew Yuen, COO of Keppel O&M and Mr V K Nagpaul, Project Manager at Vision DrillingAboard jackup rig Dynamic Vision, the management ofKeppel O&M, Dynamic Offshore Drilling and Vision Drillingparticipated in the smashing of coconuts, in a traditionalIndian blessing of a vesselKeppelite I February 2013

21said, “India’s growing energydemand is driving the countryto actively increase its offshoreoil and gas production. Theproven KFELS B Class jackupdesign, coupled with ourestablished experience inoffshore drilling, places VisionDrilling in a good positionto meet this demand. Ingrowing our fleet of highspecificationjackup rigs, welook to continue to workwith reliable shipyards, andKeppel FELS has again livedup to its reputation as theworld leader in rig buildingwith this early delivery.”TRANSOCEANA week later, on 2 February2013, Keppel FELS christenedtwin KFELS Super B ClassBigfoot jackup rigs built forTransocean.Transocean Siam Drillerand Transocean Andamanwere named in the presenceof Guest-of-Honour, MrMasagos Zulkifli, SeniorMinister of State, Ministryof Home Affairs and Ministryof Foreign Affairs.Mr Masagos said, “WhileSingapore has no oil andgas resources, thanks tocompanies like Keppel FELS,Singapore has made its markin the industry. We are todaythe world leader in designingand building jackup rigswith a 70% market share.Keppel FELS has establisheda reputation for developingwinning rig designs wellsuitedto its customers’needs.”Customised to meetTransocean’s requirements,the two rigs are contractedt o C h e v ro n f o r w o r kin offshore Thailand.Transocean Siam Driller wasThe KFELS B Class/Super B Class rig design is today the industry standard for modern jackuprigsContinues on page 22...Lady Sponsors Mrs Duantem Voradejviseskrai (front row, third from right) and Mrs Lamiad Charoensaeng (front row, second from left) christen Transocean Siam Driller and Transocean Andamanon 2 February 2013, in the presence of Mr Masagos Zulkifli (front row, centre), Senior Minister of State, Ministry of Home Affairs and Ministry of Foreign Affairs and senior management ofTransocean, Chevron and Keppel O&MKeppelite I February 2013

22 Special Focus...continued from page 21.handed to Transocean 22days ahead of schedule atthe end of January 2013,while Transocean Andaman’sshipyard construction isexpected to be completedin March 2013.Lady Sponsor Mrs Unni Marie Østhus (third from left), Mr Jon Olav Østhus, Vice President, Legal & Commercial, Seadrill Management AS andCEO of AOD (second from left) tour their jackup rig AOD I with Mr Tong Chong Heong, CEO of Keppel O&M (front row, extreme right)Mr Wong added, “We arepleased with the industry’sacceptance of our rig designs,which enables us to replicateour building process whilestill providing value-addedand customised solutions. Ofthe rigs to be delivered thisyear, 15 are built to our KFELSB Class family of designs,four to our KFELS Super AClass design and one to ourproprietary semisubmersibledrilling tender design. Weare glad to be able to supportour long-term customers asthey grow their fleet of highspecification rigs.”The KFELS Super B ClassBigfoot is designed withlarger spud cans, expandingits operational capabilityto more places, especiallyareas where soft soil ispredominant.ASIA OFFSHOREDRILLINGOn 3 February 2013,another customer, AsiaOffshore Drilling (AOD),which is majority ownedand managed by SeadrillLimited, named its KFELS BClass jackup rig AOD I.The growing number of females working in the yard are playing important roles in the construction of the rigs in Keppel FELSThe first of three KFELS BClass jackup rigs that AODis currently building atKeppel FELS, AOD I has beendelivered 29 days ahead ofKeppelite I February 2013

23Celebrating a strong partnership between Keppel and UMW are (first row, left to right) Mr Choo Chiau Beng, CEO of Keppel Corporation and Chairman of Keppel Offshore & Marine; Mr TongChong Heong, CEO of Keppel Offshore & Marine; Lady Sponsor Puan Sri Habibah Mohd Salleh; Tan Sri Asmat Kamaludin, Group Chairman of UMW Holdings Berhad; Datuk Syed Hisham SyedWazir, President and Group CEO, UMW Corporation; Datin Engku Naimah Engku Embong, wife of Group CEO, UMW Corporation, and Mr Chow Yew Yuen, COO of Keppel Offshore & Marineschedule and with a perfectsafety record. The rig hasbeen contracted by SaudiAramco for work in offshoreSaudi Arabia.Mr Jon Olav Østhus, CEO ofAOD, and Vice-President ofSeadrill Management AS,said, “Seadrill already hasthree KFELS B Class rigs inour fleet of jackup rigs, sowe know the strength of thisdesign and are pleased toshortly add another three toour fleet. The early delivery ofthe first of these three newrigs will enable us to put it towork earlier than expectedand generate immediatereturns on our investment.“ W e h a v e a s t r o n grelationship with KeppelFELS, having built some14 rigs with them since1993, and they have alwaysdelivered rigs to our highestsatisfaction. This reliabilityis also something that ourcustomers can count onwhen they require highquality rigs on time.”When completed, the AODseries of KFELS B Class rigswill be able to operate ina water depth of 400 feet,drilling depth of 30,000feet, and accommodate150 people.UMWThe fourth jackup rigdelivered by Keppel FELS in2013 was UMW Naga 4 toUMW Oil & Gas CorporationSdn. Bhd, a wholly ownedsubsidiary of the Malaysiancompany, UMW Group.Naga is the term for dragonin Malay.Completed five days aheadof schedule, on budget andwith a perfect safety record,the rig had its handoverceremony on 16 February2013.Mr Chow said, “With a strongfocus on technology, wework closely with customersto develop innovative andcost-effective solutions fortoday’s market. We are gladto have new customer UMWchoose the KFELS B Class astheir preferred rig design. Itis ideally suited to meet thecurrent shortage of highspecificationrigs needed forshallow water fields and canbe deployed in many parts ofthe world.”UMW Naga 4 is built toKeppel’s proprietary KFELSB Class design which isthe industry standard formodern jackup rigs today.With another 16 KFELS BClass/Super B Class rigs onorder, it reflects the strongmarket demand for thedesign.En. Rohaizad Darus,President of UMW Oil & GasCorporation, added, “UMWNAGA 4 is a testimonyof UMW’s commitmenttowards establishing a longterm and active involvementin the oil and gas sector inthis region. Naga 4 wouldnot be here today withoutthe good work of our newfriend, Keppel FELS, and theclose cooperation betweenboth our teams. I would liketo express my appreciationand thanks to Keppel FELSfor completing the rig ontime.” keppeliteKeppelite I February 2013

24 Sustaining GrowthMark of excellenceMr Emilio Lozoya Austin (left), CEO of Pemex, walks alongside Mr Choo Chiau Beng (right),CEO of Keppel Corporation and Chairman of Keppel O&M as they toured the Keppel FELSyardMr Edmund Mah (right), GM (Finance) of Keppel O&M receiving the “Singapore 1000 – Sales/Turnover Excellence Award” on behalf of Keppel O&M from Mr Teo Ser Luck, Minister of Statefor Trade and IndustryStrengtheningpartnershipsKeppel Offshore & Marine(Keppel O&M) was conferredt h e “ S i n g a p o re 1 0 0 0Sales/Turnover ExcellenceAward” at the 26th AnnualSingapore 1000 (S1000)& Singapore SME 1000Awards, setting the companyapart from its peers in theTransport/Storage industry.An awards presentationceremony cum gala dinnerwas held at Shangri-laHotel on 1 February 2013to recognise exemplarycompanies across eightindustries.Receiving the award onbehalf of Keppel O&Mwas Mr Edmund Mah, GM(Finance) of Keppel O&M.For the full year2012, the company’srevenue was $8 billionwith $10 billion worth ofnew contracts. Net orderbook as at end December2012 was $12.8 billion, withdeliveries into 2019.Keppel O&M’s impressiveperformance is due to itsfocus on strengtheningits core competencies,maintaining a reputationfor on-time deliveries,leveraging its global networkof yards, and having a suiteof proprietary technology.The S1000, SingaporeSME 1000 and SingaporeInternational 100 awardsrepresent the most extensiveaudit of Singapore’s corporatesector performance. The finallist of award recipients isarrived at after reviewingthe financial returns of morethan 40,000 companies.keppeliteHaving recently signed acontract in December 2012to build two jackup rigsfor Petroleos Mexicanos(Pemex), Keppel FELS hosteda visit for the Mexicanstate oil company’s topexecutives, led by its CEO,Mr Emilio Lozoya Austin,on 30 January 2013.Mr Choo Chiau Beng, CEOof Keppel Corporationand Chairman of KeppelO f f s h o r e & M a r i n e( K e p p e l O & M ) , a n dMr Chow Yew Yuen, COOof Keppel O&M, togetherwith Keppel management,were on hand to elaborateon Keppel’s efficient rigbuilding process and thestrengths of the KFELS BClass design.Besides touring the yard,Mr Lozoya Austin alsodiscussed potential areasfor mutual cooperation andPemex’s plans for the future.He said Pemex intended toadd between eight and 12offshore platforms to itsfleet, which would make itthe world’s largest operatorof jackup rigs.Keppel FELS is building twojackup drilling rigs to itsproprietary KFELS B Classdesign for Pemex. The rigswill be deployed in theshallow waters of the Gulfof Mexico in the first halfof 2015. The yard’s otherprojects for Mexico includea KFELS B Class jackup rig,which was recently deliveredto Mexican customer, OroNegro, as well as a repeat rigwhich is under construction.keppeliteKeppelite I February 2013

Sustaining Growth 25Advancing in WuhuWuhu Sanshan Port, a jointventure between KeppelTelecommunications &Transportation (KeppelT&T) and Sinotrans Ltd,successfully completedits maiden trial unloadingexercise on 25 January 2013for Phase 1 of the project.The port will be one ofthe largest inland gradeone river ports in AnhuiProvince when it turns fullyoperational in 2014.During the trial, a 10,000-dwt barge fully loaded withiron ore was unloaded. Theload was then successfullyconveyed, via a purposebuiltmaterial transfer andreceiving system to one ofWuhu Sanshan Port’s keycustomers, Wuhu XinxingDuctile Iron Pipes, which islocated beside the port.GM of Wuhu Sanshan Port,Mr Au Yong Kong Sengsaid, “To achieve smoothoperations, we exercisedgreat caution in every detailand ensured that necessaryresources, such as the quaycranes, ship unloaders, skidloaders, manpower, utilitysupply, remote surveillancesystem and conveyor system,were in good workingcondition.” Mr Au Yong isthe first GM appointed forthe joint venture.Alongside the preparationsand execution of the trialrun, the team had toWorking in harsh conditions for successful trial operations are the first management team of the joint venture: (from left) Max Ng, Deputy CFO,Fu Tao, Deputy GM, Au Yong Kong Seng, GM, Luo Ye Wen, CFO and Kuang Ping Jian, Assistant GM (Projects & Operations)simultaneously manage thewharf operations as well asoversee the construction ofthe main storage yard areaand auxiliary facilities.With a land area of553,000 sm and four10,000-dwt berths, theport will have an annualhandling capacity of morethan seven million tonnes,serving China’s centralregion.Apart from port operations,Wuhu Sanshan Port willoffer integrated logisticsservices such as internationalfreight forwarding, bondedwarehousing, customsdeclaration and other thirdparty logistics services.keppeliteA ship unloader at Wuhu Sanshan Port in action during trial operationsKeppelite I February 2013

26 Sustaining GrowthBolstering leadershipMr Hoe Eng Hock Mr Toh Ko Lin Mr Johnnie TngKey appointments weremade at Keppel Offshore& Marine (Keppel O&M)and Keppel REIT recently,bolstering the leadershipteam and helping to sustainthe continued growth of thecompany.KEPPEL OFFSHORE &MARINEMr Hoe Eng Hock, previouslyED of Keppel Singmarine, hasbeen appointed MD of KeppelSingmarine with effect from1 February 2013. He willcontinue to oversee theoverall business operationsand strategic developmentof Keppel Singmarine, aswell as the overseas yardsof Keppel Nantong Shipyardand Keppel Singmarine Brasil.He will report directly toMr Michael Chia, MD (Marine)and MD (Technology), KeppelO&M, and Mr Chow YewYuen, Chairman of KeppelSingmarine.Mr Toh Ko Lin, previouslySGM (Commercial), will takeover the baton from Mr Hoeas ED of Keppel Singmarinefrom 1 February 2013. Hewill oversee the planningand operations of the yard,and concurrently serve asChairman and President ofKeppel Philippines Marineto manage and strengthenthe yards’ infrastructure,production methodology,and technical and projectsupervision. He will reportdirectly to Mr Hoe.KEPPEL REITMr Johnnie Tng ChinHwee joined Keppel REITManagement on 1 February2013 as its CFO.Mr Tng, 45, has more than22 years of experiencein corporate finance andprivate equity investmentwhere he has held varioussenior roles. He started hiscareer with the MonetaryAuthority of Singaporebefore joining SBC Warburgand Nomura thereafter.Prior to joining KeppelREIT Management, he wasthe CFO of the Trustee-Manager for Ascendas IndiaTrust, the first India-focusedproperty trust listed on theSingapore Exchange. Hewas also Vice-President(Corporate Finance) at RGMInternational, a resourcebasedconglomerate,w h e r e h e o v e r s a w anumber of global mergersand acquisitions, debtrestructuring and crossborderfinancing deals.Ms Ng Hsueh Ling, CEO ofKeppel REIT Management,said, “Johnnie’s financialexpertise and experiencewill add to our strongmanagement talent pool andcontribute to Keppel REIT’sgrowth as one of Singapore’sleading office REITs.”Mr Tng will be responsible forKeppel REIT Management’sfinancial and reportingf u n c t i o n s , i n c l u d i n gaccounting, taxation, treasury,capital management andcompliance. Mr Tng holdsa Bachelor of Accountancy(Honours) degree from theNanyang TechnologicalUniversity of Singapore.keppeliteKeppelite I February 2013

Sustaining Growth 27Progress in PerthMs Ng Hsueh Ling, CEO ofKeppel REIT Management,said, “This acquisitionreflects our commitment tocontinually invest in qualitycommercial properties thatwill provide stable andsustainable returns to ourUnitholders.Keppel REIT is on track to complete theacquisition of a 50% interest in the officetower on the site of the Old TreasuryBuilding in Perth by March 2013Keppel REIT is on track tocomplete the acquisition ofa 50% interest in the newoffice tower on the site ofthe Old Treasury Buildingin Perth, Western Australia(WA), by March 2013,following Mirvac Group’sapproval from the WA StateGovernment to sell its interestto Keppel REIT.Keppel REIT announced on26 September 2012 thatit had entered into anagreement with Mirvacto acquire the stake forA$165 million (approximatelyS$209.7 million).“Keppel REIT currently ownsthree quality office assetsin the CBDs of Sydney andBrisbane. This property onthe historic Old TreasuryBuilding site is our first inPerth’s prime office sector.We are confident thatthis new premium-gradeoffice development willcomplement our portfolioof quality properties.”When completed in thesecond half of 2015,the 34-storey towerwill have an estimated331,370 sf of net lettablearea and 208 carpark lots.T h e b u i l d i n g i s 9 8 %pre-committed to the WAState Government undera long-term lease of 25years with options to extendfor another 25 years. Theproperty is targeting a5 Star Green Star rating(by the Green Building Councilof Australia) and is designedto achieve a 4.5 Star NABERS(National Australian BuiltEnvironment Rating System)Energy Rating. keppeliteKeppel Corporation and Keppel REIT management toured 8 Chifley Square, a KeppelREIT-Mirvac owned property in SydneyForging tiesKeppel Corporation’s CFOMr Loh Chin Hua and Directorfor Group Corporate Affairs,Ms Wang Look Fung metwith senior management ofMirvac Group (Mirvac) duringKeppel’s investor roadshowin Sydney, Australia, on30 January 2013.Mr Loh and Ms Wang startedwith an introduction tothe Keppel Group and itsstrategic direction. Mirvac’sCEO and MD, Ms SusanLloyd-Hurwitz, gave a briefbackground on Mirvac,including the company’shistory and its strategy in theshort- to medium-term.T h e d i s c u s s i o n s w e refollowed by a tour of 8 ChifleySquare, a Keppel REIT-Mirvacowned property in the heartof Sydney’s CBD. JoiningMr Loh and Ms Wang onthe tour were Keppel REITManagement’s CEO Ms NgHsueh Ling and Senior VP forInvestment Mr Chua HsienYang as well as Mirvac’sMr Adam Crowe, GroupGM for Group Strategy;Mr Karsten Simpson, GMfor Business Development,Platform; and Mr SimonHealy, Project Director forApartments & CommercialDevelopment.T h e 3 0 - s t o r e y t a l l8 Chifley Square, locatedat the junction of HunterStreet and Elizabeth Street,is currently underc o n s t r u c t i o n . W h e ncompleted in the third quarterof 2013, this premiumcommercial building willhave an estimated 205,700 sfof net lettable area. keppeliteKeppelite I February 2013

28 Sustaining GrowthSustainable developerAs a testament to its steadfastcommitment to sustainablepractices, Keppel Land wasincluded in RobecoSAM’sSustainability Yearbook forthe third year running.Published in cooperation withKPMG, the tenth edition ofthe yearbook is a leadingreference guide to the world’ssustainability leaders.Over 3,000 of the world’slargest companies areinvited to participate inRobecoSAM’s CorporateSustainability Assessmenteach year, wherebycompanies’ sustainabilityscores derived from theassessment, as well astheir responses to criticalsustainability issues, areevaluated. The top 15%of companies from eachsector are included in theyearbook. keppeliteAs a sustainable developer, Keppel Land continues to improve energy efficiency through the development of high-performance commercial buildingsWalking the talkKwok Yan Hoe, Deputy GM (Sustainable Design), Keppel Land, promotes a green lifestyle.When asked howcompanies could promotea strong culture of ecofriendlinessamong staff,Kwok Yan Hoe, DeputyGM (Sustainable Design),Keppel Land, repliedmatter-of-factly, “It hasto be made a way of life.Ultimately, it all comesdown to our lifestyle andpersonal habits”.Yan Hoe shared that notonly does Keppel Landencourage staff to recycleand minimise waste, thecompany also endorsesgreen initiatives such asNational Library Board’s(NLB) Book Exchange, winterclothes donation drives, andeco-bazaars.Walking the talk, Yan Hoereduces, reuses, and recycleswherever he can. Growingup, he was inculcated witha green mindset, and hehas since put rules in placeto ensure that his childrenimbibe the same values.The Kwok family usesrainwater for washing, andminimises electricity usageby ensuring that lights andappliances are turned offwhen they are not beingused. Every fortnight,they sort recyclable wastematerials and recycle them.Such habits are what YanHoe hopes his children willpractice in years to come.He concluded, “Thebiggest challenge is notin green design, but ineducation.”Keppelite I February 2013

Sustaining Growth 29Shaping industry agendaSea Asia 2013, a keymaritime conference andexhibition, will take placeon 9 to 11 April this year.The event will comprisepanel discussions on a broadrange of topics, includings h i p f i n a n c e , g r e e ntechnologies, and theprospects of various segmentsof the maritime industry.Mr Chow Yew Yuen, COOof Keppel Offshore & Marine(Keppel O&M), has beeninvited to particpate inthe Sea Asia 2013 paneldiscussion on the offshoresector, which will takeplace on the second day ofthe event.In shaping the themes tobe discussed at Sea Asia2013, Mr Aziz Merchant,ED of Keppel Offshore &Marine Technology Centre(Deepwater Technology) andDeepwater Technology Groupas well as ED (Engineering) ofKeppel FELS, participated ina roundtable discussion inDecember 2012 involvingindustry experts.Mr Merchant shared on therig replacement market. Heindicated that demand for rigreplacement is being drivenby the industry’s growingpreference for newer, highspecificationrigs, whichboasts strong safety andefficiency features.Mr Merchant also explainedthat as the requirements ofoil companies are gettingmore stringent, the costsand schedule differences ofmeeting these requirementsvia conversion and upgradingversus newbuilding havenarrowed. As such,newbuilding is increasinglymore attractive.On the matter of projectfinance, Mr Merchant notedthat working with reputableyards and acquiring rigs builtto proven designs supportcustomers’ efforts in gettingfavourable financing terms.His thoughts were sharedby Mr Ian Thia, Senior Vice-President & Head of OffshoreAsia at DNB Bank ASA. Also aparticipant of the roundtablesessions, Mr Thia said thathis team would hesitate tofinance a complex project atan inexperienced facility.When asked about the newrequirements that Keppelhas to factor into its rigdesigns, Mr Merchant listedexamples such as havingmore advanced equipment,higher redundancies andlarger capacities as wellas ensuring higher energyefficiency.Keppel O&M will have astrong booth presence atSea Asia 2013. For moreinformation on Sea Asia2013 and to register, pleasevisit www.sea-asia.com.keppeliteMr Aziz Merchant (third from right), ED of Keppel Offshore & Marine Technology Centre (Deepwater Technology) and Deepwater Technology Group as well as ED (Engineering) of Keppel FELS,shared on the outlook for the offshore market and some of the challenges of the sector at a breakfast roundtable with management representatives from various organisationsKeppelite I February 2013

30 Sustaining GrowthSpurring innovationF o r S i n g a p o r e t ocontinue to grow its roleas a strategic innovationpartner for multinationalcompanies, it will need toexplore strategies such aspioneering innovations inengineering systems as wellas spearheading innovationsfor emerging marketsto capture first-moveradvantage.This was the message sharedby Prof Hang Chang Chieh,ED, Institute of EngineeringLeadership, and Head,Division of Engineering &Technology Management,National University ofSingapore, during the 27thinstallment of the ChuaChor Teck Memorial Lectureon 31 January 2013 atthe Singapore PolytechnicConvention Centre.Speaking to a packedauditorium, Prof Hangpresented on the topic“Technological Innovation:Strategies for Singapore’sEconomic Development”,and touched on strategiesand opportunities forinnovation in the offshoreand marine industry.The lecture session wasmoderated by Mr ChooChiau Beng, CEO of KeppelCorporation and Chairmanof Keppel Offshore & Marine( K e p p e l O & M ) . B o t hProf Hang and Mr Choofielded questions fromKeppel Corporation CEO and Chairman of Keppel O&M, Mr Choo Chiau Beng (right) moderated the lecture session by Prof Hang ontechnological innovationthe audience who werelargely from the marine andoffshore industry.The Chua Chor TeckMemorial Lectures, heldannually in memory ofthe late Mr Chua ChorRenewing tiesTeck, Keppel Shipyard’sformer MD and a pioneerin Singapore’s maritimesector, seek to promotemarine-related industriesby spurring discussion ontopics spanning the fields ofmarine engineering, navalarchitecture, shipbuilding,ship repairing, offshoretechnology and shipping.Since its inauguration in1986, the lecture series havebenefited more than 5,000people. keppeliteKeppel O&M Alumni Committee organised a get-together session for its members as a prelude to the 27th Chua Chor Teck MemorialLecture. The intimate gathering took place at the Singapore Polytechnic Convention Centre and saw 45 alumni members and Keppelmanagement getting together to renew old ties and honour the memory of the late Mr Chua Chor Teck, a much-loved Keppel son.Keppelite I February 2013

Empowering Lives 31Sharing best practicesTo provide a sharing platformon human resource (HR)best practices, KeppelOffshore & Marine (KeppelO&M) hosted the KeppelO&M HR Symposium inSingapore from 28 Januaryto 1 February 2013. Theprogramme involved 30 HRprofessionals from acrossKeppel O&M’s local andoverseas business units.Centre and Keppel’s workerdormitories.Reaffirming Keppel O&M’scommitment to peopledevelopment, the eventhighlighted people asKeppel’s key asset, and theimportance of valuing eachcontribution through fairreward and opportunities fordevelopment. keppeliteThe symposium compriseddiscussions between unionrepresentatives and HRmanagers of the shipyards,sharing sessions by HRpractitioners from variousindustries, and visits tothe Keppel O&M TrainingThe Keppel O&M HR symposium saw professionals from across Keppel O&M’s local and overseas business units share on best practicesBroadening skill setsTo provide Keppeliteswith a practical foundationon the administrationof commercial contractsand contract law, GroupHuman Resourcesorganised the inauguralEssential Contract Laws forNon-Legal Professionalsworkshop from 23 to 25January 2013. The course wasattended by 29 Keppelitesacross the Group.Participants were guidedthrough the essentials ofcontract law, and learnthow to avoid draftingunenforceable contracts.To meet the Group’sbusiness needs, trainingon engineering, marine andconstruction contracts, aswell as background on theassociated regulations wereprovided.The session also sharedinsights into the legalimplications of commercialrelationships, and exploredthe traps and pitfalls ofcontracting and contractdrafting.Chew Chong Peng,Development Manager fromKeppel Energy, found theworkshop beneficial. Heshared, “In the developmentof power projects, we oftenhave to enter into multimilliondollar contracts onthe construction, operationand maintenance of powerplants. The course is usefulas I learned to identify theareas in contracts wheredisputes usually occur, thedifferent approaches tominimise such disputes, andthe preferred legal positionto adopt for the Group.”keppeliteWorkshop participants like Chew ChongPeng (left), a Development Managerat Keppel Energy, gained a practicalfoundation on the administration ofcommercial contracts and contract lawKeppelite I February 2013

32 Empowering LivesNurturing bicultural leadersKeppel is focused on growingstrategic investments inChina, and establishing itselfas a partner of choice in thecountry. The company hasnurtured a strong relationshipwith the country sincethe 1980s.The Chinese economyhas outpaced every othereconomy in the past twodecades, and much ofthe economic and socialdynamism in China todayresult from its growinginterdependence with therest of the world.Mr Goh Toh Sim, ChiefRepresentative (China)of Keppel Corporation,witnessed a fair share ofChina’s development overthe years, having beenbased in China since 1994when he joined the China-Singapore Suzhou IndustrialPark Development as ayoung officer.In addressing Keppelites at thefirst Keppel Young Leaders’Leadership Series talk of theyear on 19 January 2013,Mr Goh shared that as notwo countries share the sameculture, Keppelites who arebicultural can reach deeperinside China to understandits growth story.GUAN XI IN THEBUSINESS WORLDMr Goh walked Keppelitesthrough the businessclimate in China, and gavean insight into its businessculture. He shared thatguan xi, or one’s personalisednetworks of influence, is acritical factor in determiningthe success of business deals.Guan xi is about cultivatingbusiness relationships ona more personal level,compared to one that drawsthe line between work andprivate life.CULTURALUNDERSTANDINGMr Goh emphasised thatlearning about China isnot just about learning thelanguage, but also aboutunderstanding the intricaciesof the culture. He sharedthat in doing business theChinese way, there has tobe mutual understandingthat the signing of anagreement is the beginningof a long friendship inwhich adjustments aremade along the way. Thisis unlike business dealingsin Western countries,where the signing of anagreement signifies finalityin negotiations.Mr Goh also shared howvarious aspects of the legalsystem in China differ tothat of Singapore’s. Headvised Keppelites to takethis into consideration intheir business deals.He added that as a result ofChina’s growth, there will be agreater demand for bilingualand bicultural talents, andwhile Singaporeans havea distinct advantage giventheir ability to read, writeand speak both English andMandarin, it does not meanthey fully understand theChinese culture.To this end, he said, “If youwant to be successful inChina, understanding itspolitics and of course, itsculture, is a prerequisite.”keppeliteMr Goh Toh Sim, Chief Representative (China), Keppel Corporation, shared his insights on China with Keppel Young LeadersKeppelite I February 2013

Empowering Lives 33Time for talentsWith people as its mostvaluable asset, the KeppelGroup is committed toconstantly nurture its talentpool and broaden staffengagement through variousinitiatives.TalenTime, which is organisedby Group HR, aims to fosteropen communication andgive high-potential Keppelitesthe opportunity to connectwith senior management.See Toh Wei Han, Senior Executive (Investment) at Keppel Land likened Keppel to be his extended familyOver at Keppel Land, seniorm a n a g e m e n t b o n d e dwith employees over a teasession.EMPLOYER OF CHOICEWould you recommend yourbest friend to work in Keppel,and why?13 young Keppelites fromacross the Group shared theirviews at the first TalenTimesession of the year on6 February 2013.Keppel Land’s inaugural afternoon tea session provided a platform for senior management to interact with staffT h e s e s s i o n s p a r k e doff a lively discussion onthe attributes that makea company attractive topotential employees, andhow Keppel could continueto build a strong reputationas an employer of choice.A few common themeshighlighted by participantsinclude a solid companyculture, opportunities forcareer advancement, anda clear understanding ofthe company’s businesspriorities.See Toh Wei Han, SeniorExecutive (Investment) atKeppel Land, cited Keppel’speople-oriented policies andinclusive culture to be adraw for potential recruits.Wei Han extolled thenumerous platforms used toengage employees, and theopportunities that he hashad to build camaraderiewith his team through sportsand recreational events.Sharing that he had ropedin his colleagues to help himpropose to his fiancée duringa vacation, Wei Han likenedKeppel to be his extendedfamily.BONDING OVER TEAAs part of ongoing effortsto engage employees,Keppel Land HR organisedan inaugural tea sessionfor senior management toconnect with employees.In attendance at the sessionwere Keppel Land CEOMr Ang Wee Gee, KeppelLand President (Singapore)Mr Tan Swee Yiow, and MD,Alpha Investment Partners,Ms Christina Tan.During the session, Mr Angemphasised the importanceof face-to-face interactionin building rapport amongemployees, and in creatingan enjoyable workingenvironment. keppeliteKeppelite I February 2013

34 Empowering LivesKeppelites AbroadCamaraderie in the Philippines“At the end of the day, it’sthe relationship with ourcolleagues that determineshow productive the teamis, and how much we enjoyour job. I am grateful forthis opportunity to workin the Philippines, whereeveryone is willing to lend ahelping hand and share thefruits of their labour,” sharedJarod Lee Jian Run, projectengineer with Keppel SubicShipyard.One of his biggest takeawaysf r o m h i s e x p e r i e n c eabroad is the importanceof communication, whichgoes a long way towardsunderstanding the newculture.Jarod took on the challengeof working in the Philippinesto add a new dimension tohis professional developmentand broaden his horizons.The journey, Jarod shared,has been nothing short ofrewarding and fruitful.Having been based at SubicShipyard since September2012, Jarod notes that animportant part of Filipinoculture is camaraderie,or the need to maintains m o o t h i n t e r p e r s o n a lrelations. This is one of thereasons why the Philippinesis viewed as a friendlycountry where people tendto smile and engage incasual conversation. Jarodattributes his positiveexperience in the countryto Filipino hospitality andgenuine warmth.Jarod believes in fosteringa c o l l a b o r a t i v e w o r kenvironment by treatingall people, regardless ofnationality and status, withdignity and sincerity.“Adapting to a newworking environment,especially one that is totallyforeign, is not dauntingif we engage othersearnestly and with respect.The strong bonds forgedwith my colleagues havegreatly boosted overallteam morale and producedefficient work outcomes inour engineering projects,”shared Jarod.It is not just all work andno play for Jarod, as thePhilippines is blessed withfine beaches such as the oneat Boracay, located south ofManila.“My wife and I had theopportunity to visit thebeautiful beaches here, whichare lauded to be among thebest in the world,” sharedJarod. keppeliteIt is not all work and no play for Jarod, who takes time to exploreBoracay’s beachesKeppelite I February 2013

Empowering Lives 35Sporting friendshipK e p p e l i t e R e c r e a t i o nClub (KRC) continues topromote sporting excellenceand camaraderie amongK e p p e l i t e s t h r o u g hrecreational activities andfriendly competitions.IN RAIN OR SHINEThe eighth KRC CricketTournament was held on3 February 2013 at theSingapore Indian Associationcricket field. Bringingtogether eight teams fromvarious business units inthe Keppel Group, theday-long tournament sawplayers racing against timeto complete the tournamentin the face of intermittentrain.Showing grit and theKeppel Can-Do! spirit, theparticipants competedintensely against each otherwhen the sun came up, butjoined hands in unity to shieldthe expansive grounds withlarge canvas sheets when therain fell, in order to ensurethat the pitch remained safefor playing. This scenario wasrepeated a few times, withspirits remaining high.Mr Hoe Eng Hock, Presidentof KRC.PRACTICE FOR PADDLERSKRC continues to offer itsmembers free use of tabletennistables at ClementiSports Hall from 6pm to 9pmevery Thursday evening. Thebenefit was extended bythe Singapore Table TennisAssociation in appreciationof Keppel Corporation’sdonation made to theassociation in 2011.Mr Richard Ong, OperationsExecutive from Keppel SeaScan, who regularly makesuse of the tables to practisewith his friends, sharedhow this arrangementpromoted healthy lifestyleand interaction amongKeppelites. He said, “Theavailability of these freetable tennis tables givesus a greater incentive totrain regularly and keep fit.After a grueling rally, there isnothing better than to cooldown and bond with otherKeppelites over a refreshingdrink.”The booking and use ofthe tables are open to KRCmembers only. For moreinformation on joining thesesessions, please contactainon@keppelshipyard.com.keppeliteMr Richard Ong, Operations Executive at Keppel Sea Scan, sharpens his paddling skills withfellow Keppelites at the Clementi Sports Hall every weekKeppel Singmarine emergedas the overall team champion,with Keppel FELS closebehind as the first runnerup. Keppel Shipyard (Benoi)and Keppel Shipyard (Tuas)took third and fourth placesrespectively. The teamsreceived their awards fromWhen the rain fell, the steely competitors at the eighth KRC Cricket Tournament banded together to cover up the pitch in order to ensure that itremained safe for playing laterKeppelite I February 2013

36 Empowering LivesVictorious debutBenjamin Boo performs at OFC with his distinctive jazzy flair and seamless improvisationsAmidst keen competition, theteam from Keppel Bay SailingAcademy (KBSA) showedtheir skill and mettle to clinchsecond in class during theirdebut at the 19th SingaporeStraits Regatta.Meng with Chief InstructorLynnette Leong and sevenother ex-KBSA studentsand sailing friends, bravedstrong, unpredictable windsand charged to the finish,beating seasoned teams.Joyous rhythmUshering in the LunarNew Year, Keppel REITManagement organised a‘live’ piano recital by talentedlocal artists, Benjamin Booand Christel Yeo, at the lobbyof Ocean Financial Centre(OFC) on 25 January 2013.In a separate segment onValentine’s Day, youngvocalists Amni MusfirahAbdul Rashid and SaraDowlatkhah belted out loveballads to the accompanimentof Aqram Mydin and ShaunNg on piano.To commemorate its namechange, Keppel REIT hadpurchased a Steinway grandpiano, which now takescentrestage at OFC. Suchperformances are part ofKeppel REIT’s efforts tosupport young aspiring artistsand professional musicians,while at the same timefoster stronger and moremeaningful relationshipswith its tenants and thecommunity-at-large.Benjamin Boo, who made hismark as one of Singapore’smost talented child prodigies,shared, “I think it is greatthat Keppel REIT supportsgifted young musicians inSingapore by giving them aplatform to showcase theirtalent and spread cheer tothe financial and businessdistrict through music.”Ms Pauline Lim, ExecutiveDirector at DMG & Partners,a tenant at OFC, added,“With the arrival of the sleekSteinway grand piano, wedon’t need to go very farto be treated to world-classmusic. It makes even thebusiest person pause to listenand enjoy.”Monthly performancesranging from classical, jazzto choral music, will continueto be held for a period oftwo years, after which thepiano will be donated to theSingapore School Of TheArts. keppeliteThe event witnessed elitesailors from countries suchas Singapore, Hong Kong,Belgium and Great Britaincontesting in seven actionpackedraces over fourdays.In spite of challengingmonsoon conditions, theKBSA team displayed trueCan-Do! spirit in theirpassage from Singaporeto Nongsa Point Marina inBatam, Indonesia and back,performing commendably.S.Y. Endeavour, helmed byKBSA Principal Tan ThongKBSA actively participatesin other regional races suchas the Horsburgh Challenge2012, where they clinchedthe title, and Mayor’s Cup2010 and 2011, where theycame in seventh and fourthrespectively.KBSA is an integral part ofthe award-winning Marinaat Keppel Bay. Established in2008, the marina providesthe ideal live-work-playenvironment for residentsof the world-class Keppel Bayprecinct. keppeliteAn integral part of the award-winning Marina at Keppel Bay, KBSA clinched second-in-classduring its debut at the 19th Singapore Straits RegattaKeppelite I February 2013

Empowering Lives 37Ushering in good tidingsSenior management of Keppel Corporation celebrated the Lunar New Year with staff on 15 February 2013, and hosted a Lo Hei lunch organised by Group Human Resources to usher in goodfortune for the year ahead. Hosting the lunch were Chairman Dr Lee Boon Yang, CEO Mr Choo Chiau Beng, SED Mr Teo Soon Hoe, CFO Mr Loh Chin Hua, and other senior management. Theycommended all staff for their efforts over the past year, and expressed their well wishes to all. Staff were also greeted by the “God of Wealth” who brought fortune cookies and “gold coins”,which are auspicious symbols of abundanceLiving her mother’s dreamSafarah Asmada (left), a productionengineer at Keppel Singmarine, lives hermother’s dream of working in the marineindustryWhen Safarah Asmadagraduated from the SingaporeInstitute of Technology (SIT)and joined Keppel Singmarineas a production engineer inJune last year, her motherglowed with pride.“My mum always wanted towork in the marine industry,but an accident 20 years agomade her paralysed fromthe waist down and shecouldn’t achieve her dream,”explained Safarah.Safarah, who has a diplomain marine and offshoretechnology from Ngee AnnPolytechnic, had receiveda scholarship from KeppelOffshore & Marine (KeppelO&M) to complete a degreeprogramme in engineeringwith honours in navalarchitecture. The industryfocusedprogramme byNewcastle University isconducted in collaborationwith SIT.Safarah is grateful for KeppelO&M’s scholarship, whichrelieved her family of financialburden, given her mother’scostly medical expenses.She said, “I am veryappreciative of Keppel’ssupport over the years.Not only has the companyhelped to fund my furthereducation, it has also givenme opportunities to learnand grow in a meaningfuljob that I enjoy.”Safarah shared thatgraduating from SIT wasonly the start of her journeyas an engineer, and thatexcelling at her job requirestenacity and hard work.The offshore and marineindustry is male-dominated,and Safarah was initiallytasked to supervise some80 male employees workingon panels for shipping vesselsand rigs.“It was tough at thebeginning, and being a newengineer, I had to earn therespect of my team,” saidSafarah.Perseverance is key toexcelling in the industry, andSafarah has since adaptedwell in her role.Keppelite wishes Safarah allthe best for a fulfilling careerat Keppel. keppeliteKeppelite I February 2013

38 Nurturing Communities CommunitiesGet going for goodAlways ready to rally behind meaningful causes, Keppelites recently supportedinitiatives to enhance the welfare of needy families and inspire others to do good.SPREADING CHEERKeppel Land employeesbrought Lunar New Yearfestive cheer to the lessfortunate by partneringwith Metropolitan YMCASingapore to sponsor anddistribute goodies such asroast chicken, love lettersand mandarin orangesto 85 needy familiesbenefiting from the MYManna (Provision with aMission) programme.CHAMPIONING LITERACYKeppel Land has been astrong supporter of theNational Library Board’s(NLB) initiatives over thepast few years, including theNLB kidsREAD programme.The nationwide readingcampaign by NLB aimsto cultivate good readinghabits among children fromlow-income families byhaving volunteer readersregularly read aloud storiesto them. Keppel Land held avolunteer recruitment drivein early February this year,successfully rallying a newteam of volunteers to jointhe meaningful outreachactivity.RUN FOR A CAUSEMr Lim Nghee Huat’sstrong finish at Brazil 135Ultramarathon – a gruelling217km race in the mountainsheld from 18 to 20 January2013 – is an achievementwhich inspires passion,endurance and care for thecommunity.The 59-year-old Singaporeanwas one of 90 runnersworldwide, and one of fourAsians invited to participatein the race. Clocking animpressive timing of 44hours and 57 minutes,Mr Lim completed the eventin the 22nd place.Giving Mr Lim an addedboost for this challenge washis pledge to concurrentlyraise funds for a rehabilitationcentre for the elderly. Wonover by Mr Lim’s Can Do!spirit and his meaningfulcause, Keppel Corporationcontributed $5,000 to hisrace participation.The new centre, which willbe located at KampongArang Road, will cater toelderly with problems inmobility or function. Runby St Hilda’s CommunityServices, the premise willprovide integrated day careand home nursing services.Brazil 135 Ultramarathonis one of the world’stoughest marathons. Somecompare the hill route toclimbing Mount Everest.keppeliteKeppel Land partnered with Metropolitan YMCA Singapore to provide Lunar New Yeargoodies to 85 needy familiesKeppel contributed $5,000 to Mr Lim Nghee Huat’s participation in Brazil 135 Ultramarathon,which he pledged to raise funds for a rehabilitation centre for the elderlyKeppelite I February 2013

Nurturing Communities 39Warming heartsWhether it was reaching outto the elderly or engagingyouths with special needs,Keppelites took time to bondwith the less privileged thisLunar New Year.BRINGING SMILES TOTHE ELDERLYKeppel Care Foundationdonated $100,000 to theCommunity Chest’s FestiveCare and Share Campaign,in aid of social serviceprogrammes supportedby the Community Chest.To build on Keppel CareFoundation’s contribution,Keppel Volunteers andKeppel Young Leadersteamed up to bring cheer tothe residents of Bright HillEvergreen Home, a nursingfacility for the aged whichKeppel Volunteers Liow Lian Kiaw (left) and Yvonne Wong (right) made festive lanterns withMadam Chua Seok Hwee (centre), resident of Bright Hill Evergreen Homeis under the CommunityChest umbrella.More than 45 volunteersrallied to usher in the LunarNew Year with elderlyresidents of the Home on21 January 2013. Volunteersworked hand-in-hand withthe residents to make festivelanterns and other LunarNew Year decorations, anddistributed ang pows, goodiebags containing orangesand chicken’s essence to allresidents of the home.Yvonne Wong, Manager(Knowledge Management),Keppel Land, shared, “MdmChua, a resident, keptsaying gan en (‘grateful’in Mandarin) to me and Isaid the same thing to hertoo. I am grateful to herfor reminding me of howimportant it is to appreciatethe elderly in my life.”Teo Wei Kiat, Director ofCommunity Projects, KeppelYoung Leaders, and ProjectManager, Keppel Shipyard,added, “It was a pricelessexperience for me to seethe faces of the elderlyresidents light up when wegreet them. Keppel YoungLeaders looks forward tomore collaboration withKeppel Volunteers to buildup a culture of volunteerismamong young leaders ofthe Group”.FESTIVE MAKEOVEROver at the Katong branch ofthe Association for Personswith Special Needs (APSN),Keppel Volunteers organiseda “best-dressed cai shen (Godof Wealth)” competition,which brought out the bestof the students’ teamworkand creative flair.The activity, which waschaperoned by KeppelVolunteers, saw eightclasses of students competeto dress the best cai shenwith costumes made withcrepe and cellophane paper,glitter, coloured tape andempty red packets.Keppel Volunteers teamed up with young students from APSN Katong School to usher in the year of the Snake with a cai shen dress-up activityThe cai shens then paradedtheir costumes on stage,to loud cheers from all.CEO of APSN, Mr KennethTham, Principal of the APSNKatong School, Mdm LimCheng Liew and Presidentof Keppel Volunteers,Mr Kwok Yan Hoe, judgedthe competition. keppeliteKeppelite I February 2013

40BackPageSeizing growth opportunitiesLatest acquisition is in line with Keppel Land’s strategy to further expand itscommercial portfolio in high-growth cities.Keppel Land China andAlpha Investment PartnersLimited (Alpha), the propertyfund management arm ofKeppel Land, have partneredfor the first time to acquirea mixed-use development,Lifehub @ Jinqiao (Lifehub),in the key gateway city ofShanghai, China.Keppel Land China,through its wholly-ownedsubsidiary, Hillsvale Resort,has entered into a jointventure agreement toacquire a 42.5% stakein Equity Rainbow II for acash consideration ofUS$126.5 million (S$157million). The remaining57.5% is held by Alpha’sAlpha Asia Macro TrendsFund II and its co-investor,for a cash considerationo f U S $ 1 7 1 . 1 m i l l i o n(S$211.8 million). EquityRainbow II owns 80%of the issued shares inSparkle Bright Holdings,which holds an indirect100% stake in Lifehub.Mr Ang Wee Gee, CEO ofKeppel Land and ExecutiveVice Chairman of KeppelLand China, said, “This isthe first time that KeppelLand China and Alpha arecollaborating to acquirea premium property in agood location in Shanghai.This is also in line withour strategy to scale upKeppel Land China and Alpha Investment Partners have partnered for the first time to acquire a mixed-use development, Lifehub @ Jinqiao inShanghai, Chinain high-growth cities suchas Shanghai where KeppelLand China has established afirm foothold.“We remain confident aboutthe opportunities in thecommercial property market inShanghai, one of China’s keygateway cities. Leveragingthe synergistic businessmodels of Keppel Land Chinaand Alpha, we believe thatthe latest acquisition of themixed-use development,Lifehub, will see us benefitfrom Shanghai’s continuedgrowth as one of China’slargest retail markets.”In 2011, Shanghai recordeda total of RMB 677.7 billionretail sales and was thesecond-largest retail marketin China. According toGlobal Insight, this figureis expected to grow furtherwith retail sales projectedto increase further by 75%between 2011 and 2016.Strategically located nextto the Metro Line 6 JinqiaoStation, Lifehub comprises98,630 sm of retail and16,102 sm of office space.The development hasbeen operational sinceend-2009 and enjoys amonthly average footfall of1.25 million visitors.The mall is more than99% leased, with leadingbrands including E-Mart,GOME, Uniqlo, Nike, Adidas,Minsheng Bank, Lexus andMercedes Benz.Forbes reported in 2011that the number of middleincomeconsumers in Chinais expected to grow toapproximately 1.4 billionby 2030, double that ofthe US and Western Europecombined. The EconomistIntelligence Unit has alsoestimated that about 35%of Shanghai’s more than23 million population aremiddle-income earners andabove. This figure is expectedto grow to 50% by 2015.Mr Ang added, “The growingaffluence and rising incomeamong the Shanghainesewill see strong demand forwell-located premier retailmalls. We are confidentthat Lifehub, which iswell connected via majortransport nodes and featuresa good mix of internationaland local retailers, will meetthe lifestyle needs of thoseliving and working in thevicinity.” keppelitePrinted on recycled paperKeppelite I February 2013