April 2010 - Keppel Corporation

eppelAPRIL 2010www.kepcorp.com/ekeppeliteKeppel Group NewsletterKeppeliteSustaining goodperformance 4People quotient 22Making the switchfor Earth 40MBFC reachesnew heightsMICA(P) NO. 169/01/2010Keppelite I April 2010

144334ContentsSUSTAINING GROWTHSustaining good performance 4Well-poised to capture more value 6Enhancing collective strengths 8Strong earnings growth for property 10Driving broad-based growth 12Keppel T&T seeks growth opportunities 13New contracts from repeat customers 14Asia’s best business address takes shape 16Encore performances 18Global rig repair specialist 19Cutting an edge in Qatar 20SPECIAL FOCUSThe People Quotient 22Strengthening global network 26Diversifying LNG source 27China focus 28Scoring tops in governance 30Drilling in safety principlesFortifying fundamentals, sustaining growth 31Luxury shores at Keppel Bay 32Exporting Singapore’s urban solutions 33EMPOWERING LIVESEmerging stronger 34Racing to Panama 36Keppelites AbroadEmbracing a new culture 39NURTURING COMMUNITIESMaking the switch for Earth 40Voice of Brazil 42Keppel VolunteersFood for thought 43BACK PAGEKeppel fortifies market leadership in Brazil 44Cover image: (From left to right) Mr Kevin Wong, Group CEO of Keppel Land, Minister for FinanceMr Tharman Shanmugaratnam, Dr Lee Boon Yang, Chairman of Keppel Corporation, and Mr TongChong Heong, ED of Keppel Corporation and CEO of Keppel Offshore & Marine at the topping outceremony of Marina Bay Financial Centre Tower Two.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 FungEditorLee Wan JunEditorial CommitteeAgnes Wu, Andrea Lee, Ang Lai Lee, Cheryl Tang, Catherine Tan, Chua Ying Ying, Diana Chan, Donald Sng, Elizabeth Widjaja, Eva Ho, Geraldine Lai, Grace Chia, Hoo Yao Lin,Ivana Chua, Lee Yin Chiin, Lin Mei Li, Lynette Chong, Lynette Goh, Mak Chui Ling, Mohamed Yusof Mohamed, Raymond Chao, Roy Tan, Say Huan Yuan, Serena Toh, Teri Liew,Wong Chai Yueh, Woon Pek Yong, Vett RamosKeppelite I April 2010CO REG NO: 196800351N

EditorialA thriving climate forsustaining successThrough October to December last year,some 3,000 Keppelites across the Group sharedtheir views in an organisational climate survey (seestory on page 22). The near 90% responsedemonstrated that Keppelites were keen to givefeedback on where the organisation has done well,as well as areas for organisational improvementwhich they are interested in.The high response ratewas also a positive sign that they felt part of theKeppel team and wanted to engage in theorganisation’s growth.If we liken the culture of an organisation to a tree,the values and beliefs are the roots which establishthe deep foundations and keep the tree sturdy.The climate, therefore, has a strong impact on howthe tree thrives.An organisational climate survey is like a weatherreport that quantifies the perceptions towards thewell-being of the tree. Employees’ sharedperceptions of their work climate will impactbehaviour and how the work gets done. Someaspects of climate that effect the culture includemorale, trust, teamwork, rewards, recognition,conflict resolution and career development.Results of an organisational climate survey can helpto create a holistic picture of the organisation andallow the company to leverage its strengths, aswell as identify opportunities for improvement.Importantly, the findings provide a basis foreffective action planning for employeeengagement and organisational development.also encouraged candid and open feedback fromKeppelites.Not surprisingly, the survey surfaced commonthreads such as Keppelites expressing pride in beingpart of Keppel and that they appreciated theGroup’s core values and commitment to safety andenvironment. At the same time, Keppelites did nothold back their views on areas for continuousimprovement. The exercise provided anotherplatform to garner insightful feedback and forhealthy engagement.We can be assured that the findings and feedbackare taken seriously. In 2009 alone, Keppel investeda total of $23.7 million towards training anddevelopment despite the uncertain and challengingglobal economic conditions. The Company willcontinually engage Keppelites through regulardialogues and communication as it reviews andrefines policies and programmes to reinforce itsposition as an employer of choice.Successful organisations understand the needs anddesires of their employees and work to create apositive environment. In turn, employees arecommitted to align behaviour and performance ina shared culture to achieve corporate goals. AtKeppel, we recognise that our success route is atwo-way street.By contributing to a vigorous and robust climate,we can continue to thrive and together, share inthe fruits of our labour.Our Group survey ensured that each employeehad an equal chance of being included and therepresentative sampling size enhanced theaccuracy of the results. Anonymity in the surveyKeppelite I April 2010

4 Sustaining Growth GrowthSustaining good performanceMost of Keppel Corporation’s key lines for the first quarter recordedhealthy double-digit growth.The Offshore & Marine Division secured a creditable $1.6 billion worth of new orders and achieved improved operating margins in the first quarter of 2010The Group achieved anattributable profit of$322 million for the firstquarter of 2010. This was$37 million or 13% higherthan the correspondingperiod in 2009. EPS rose by13% to 20.2 cents. EVA of$240 million was $29 millionhigher than first quarter2009. Annualised ROE was20.3%.REVENUE AND PROFITSGroup revenue of$2,473 million was$505 million or 17% belowthat of the correspondingquarter in 2009. Revenuefrom Offshore & MarineDivision of $1,493 millionwas $626 million or 30%lower. The decline in revenuewas because of loweroutstanding orderbook. TheDivision completed anddelivered three rigs, threespecialised vessels and fivemajor conversions/upgrades.Revenue from InfrastructureDivision decreased by 2%to $624 million. Lowerrevenue from Engineering,Procurement andConstruction contracts inQatar was partially offset byhigher revenue generatedfrom the co-generationpower plant in Singapore.Revenue from PropertyDivision of $355 million was60% above the previousyear. The increase was mainlydue to progressive revenuerecognition from Reflectionsat Keppel Bay and otherresidential projects inSingapore. Revenue fromsale of residential homes inChina, Vietnam, Indonesiaand India were alsohigher. Rental income frominvestment propertiesimproved because ofacquisition of more officespace in Singapore andan investment building inAustralia.At the pre-tax level, Groupprofit of $465 million was16% above that of thecorresponding quarter in2009. Despite the lowerrevenue, Offshore & MarineDivision reported pre-taxprofit of $270 million, anincrease of 13% over theprevious year. This wasmainly due to higheroperating margins achievedduring the quarter.Profit from InfrastructureDivision decreased by 12%to $37 million as a result oflower revenue. Profit fromProperty Division doubledfrom $74 million to$152 million due toimproved contribution fromtrading projects and shareof associated companiesdeveloping Marina Bay Suitesin Singapore. Profit fromInvestments was lower as theprevious year includedcontribution from SingaporePetroleum Company whichwas disposed in June 2009.Keppelite I April 2010

Sustaining Growth 5After taking into accountincome tax expenses andnon-controlling interests,the attributable profitto shareholders was$322 million. Offshore &Marine Division remains thelargest contributor to netprofit with 64%, followed byProperty Division with 26%and Infrastructure Divisionwith 10%.PROSPECTSOffshore & Marine Divisionsecured a creditable$1.6 worth billion of neworders in the first quarter of2010. The net orderbookstands at $5.8 billion withdeliveries into 2013. Globalenergy demand is expectedto continue its upward trendover the next few years,with projected increases incapital spending on oiland gas infrastructureand technology to boostproduction rates. Therecontinues to be a healthylevel of enquiries for ourproducts and solutions.In line with our Near Market,Near Customer strategy, theDivision has identified newinvestment opportunities inBrazil, the Caspian regionand Middle East. The Divisionwill remain focused onexcellent project executionwith continued investment inresearch and development totap opportunities in existingand new markets.In the Infrastructure Division,K-Green Trust is expected tobe listed in the secondquarter of 2010. Thebusiness trust, with SenokoWaste-to-Energy Plant, UluPandan NEWater Plant andKeppel Seghers Tuas Wasteto-EnergyPlant as seedassets, will offer a newvalue-creating earningsplatform for the Group.Keppel Energy’s power andgas businesses in Singaporeare expected to continue todeliver sustainable earningsfor the Group. To meetthe growing demand forclean energy, the Grouphas started to plan theexpansion of its existing500 MW Keppel MerlimauCo-generation Power Plant.The Singapore residentialmarket remains healthy.Governments in the regionhave introduced measures tocool the strengtheningresidential property markets.Strong new homes saleswere achieved in Singaporeand China in the first quarterof 2010. In Singapore, theGroup plans to launch moreunits of Reflections at KeppelBay and Marina Bay Suites inphases during the year.Elsewhere in the region,the Group has severalother planned launches inChina and Vietnam. Thecommercial segment inSingapore is showing signsof bottoming out as thedecline in office rental hasfurther eased. The Groupwill continue to step upits leasing activities atMarina Bay FinancialCentre and Ocean FinancialCentre to improve overallcommitments ahead of theircompletion.With healthy residential sales in Singapore, the Group intends to launch more homes at Reflections at Keppel Bay during the yearWhile economic prospectsseem to be improvingglobally, there are stilluncertainties as businessescontinue to operate withdependence on governmentstimuli. keppeliteKeppelite I April 2010

6 Sustaining GrowthWell-poised to capture more valueKeppel Corporation turned in a creditable set of first quarter results for 2010,amidst a backdrop of global economies recovering at different paces. At theresults webcast, CEO Mr Choo Chiau Beng shared that the Company’s firmfundamentals place it in good stead to capture growth opportunities in theeconomic upturn. Keppelite reproduces excerpts of his speech.RECOVERY GAININGMOMENTUMThe first quarter of this yearsaw the global recoverygaining momentum. Thelatest figures indicate thatthe recovery in the US isgradually broadening toembrace the manufacturingand services sectors, withsigns of a turnaround in thelabour market.Across in Europe, whilerecovery seems to betentative, there appears tobe improved businessconfidence. Economicgrowth in Asia has certainlyremained firm. China grewby 11.9% in the first quarterof the year. Surpassingexpectations, Singapore’seconomy grew by 13.1% inthe first quarter, resulting inforecasts for 2010 to beraised to a higher range ofbetween 7% and 9%. Inpace with the economicrecovery, the credit situationhas eased somewhat andsince the start of April, oilprices have hovered aboveUS$80 a barrel.A number of forecastsindicate that global oilconsumption will continue togrow in the coming years,due to strong demand fromemerging economies such asChina, which has nowovertaken the US as theworld’s largest car market,with 13.5 million cars sold fordomestic consumption in2009.With the higher oil price andimproved sentiments, ordersare returning in the offshoreand marine industry. Whilewe do not anticipate thesame high as the previouspeak, our level of enquirieshas continued to be healthy.The orders that KeppelOffshore & Marine hassecured in the first quarter isclose to that for the entireyear of 2009.To reinforce our Near Market,Near Customer strategy, weare judiciously increasing ourcapacity in key markets suchas Brazil, the Caspian Seaand the Middle East. Inparticular, our newlyacquired yard in Brazil’s SantaCatarina and our stake in anew yard in Baku, Azerbaijanwill complement our existingwell-established yards inthose countries. With theincreasing emphasis on localcontent requirement, thesemoves will position us well tomeet the needs of thesegrowing markets.Our Infrastructure Division isworking hard to ride thegathering momentum of thetrend towards sustainablesolutions. Keppel IntegratedBRIGHTENING OUTLOOKWith the improvingeconomic environment, theoutlook for Keppel’s keybusinesses is brightening.Keppelite I April 2010

Sustaining Growth 7Engineering (KIE) started offthe year with two contractwins in China, one ofwhich involves providingtechnology for the expansionof an existing waste-toenergyplant in Shenzhenwhich will eventuallybecome the largest inChina. KIE is well-positionedto meet the demands of thegrowing China market, inwhich it holds a leadingshare. Other markets withgood potential are the UKand the Middle East, whereKIE is growing a goodportfolio of projects.Meanwhile, KeppelTelecommunications&Transportation has openeda new data centre facilityin Singapore. Additionalwarehousing capacity inHanoi and Ho Chi Minh Cityin Vietnam will come onstream in the coming monthswhile a new distributioncentre in Foshan, China willbe operational in the secondhalf of the year.In power generation, KeppelEnergy is planning theexpansion of our powerplant on Jurong Island tomeet the growing needs ofthe Singapore market. It isalso diversifying its energysources, having recentlysigned a conditionalagreement to purchaseliquefied natural gas fromBritish Gas.For our Property Division,regional markets havecontinued to register growthin the first quarter. PrivateKeppel Energy is planning the expansion of its co-generation power plant to meet the growing needs of the Singapore markethome sales in Singaporehave stayed strong. In thecommercial segment, leasingactivities have picked upwith returning businessconfidence. Phase 1 of ourMarina Bay Financial Centreis now effectively fully leased,ahead of its completion laterthis year.Our sales in China haveremained healthy, reflectinga real demand for homes bythe growing middle class inurban centres. In one of ourChengdu projects alone,more than 300 units weresold over the long weekendholiday in China earlier thismonth. The Chinese havesince introduced a freshround of measures to coolthe property market.BUILDING ON FIRMFUNDAMENTALSKeppel has firmfundamentals. We are wellpoisedto ride an economicupturn and capture morevalue for the Group’ssustainable growth, bothorganically and throughacquisitions. However, thereare cautions that the upturnmay not be very robust.We will continue tostrengthen the synergyamong our businesses.With the growing demandfrom the need for a moresustainable environmentthrough increasingurbanisation, particularly inAsia, we see opportunities inmarrying our competenciesin environmentalengineering and propertyto develop integratedtownships in China, Vietnamand Indonesia.The Sino-Singapore TianjinEco-City is well on its way tobecome a commerciallyviable and sustainableshowcase for China with itsintegrated eco-friendlyresidential, commercial,industrial and cultural-leisuredevelopments.Last year, we benefited fromour enhanced productivityand operational efficiencies.This is an area we willcontinue to hone. To stayahead of competition, wewill also further strengthenour execution excellence andtechnology across the Group.keppeliteKeppelite I April 2010

8 Sustaining GrowthEnhancing collective strengthsStarting the year with a good set of results, Keppel Corporation will continueto further strengthen execution excellence and technology to stay ahead ofcompetition. Excerpts of Senior ED and Group Finance Director Mr TeoSoon Hoe’s remarks are reproduced here.FREE CASH FLOWNet cash generated fromoperations for the quarterwas $457 million, $95 millionhigher than the same periodlast year. After taking intoaccount negative workingcapital changes mainly forexpenditure on Offshore &Marine outstanding orders,net cash used in operatingactivities was $186 million.The Group spent$341 million principallyon the acquisition of acommercial building inAustralia by K-REIT Asia,development cost of MarinaBay Financial Centre (MBFC)and Ocean Financial Centre(OFC), and operationalcapital expenditure ofOffshore & Marine Division.The resultant free cash flowwas an outflow of about$500 million for the quarter.BUSINESS REVIEW &OUTLOOKOffshore & MarineThe Division ushered in 2010on a firm note, securinga healthy order flowamounting to $1.6 billionworth of new orders in thequarter. This almost equalledthe total contract valuesecured for 2009.According to industry expertDouglas-Westwood, bothshallow and deepwateroffshore prospects arebrightening after a dip in2009. It is expected thatoffshore drilling expenditurewill return to the previouspeak recorded in 2008 byyear 2012, and will surpassthat level in 2013 to reachUS$89 billion.We are well-positioned toseize market share withour suite of proprietary rigdesigns, operational trackrecord and commitment toinnovation.The recent acquisitions andinvestments in Brazil, theCaspian region and theMiddle East will reinforce ourNear Market, Near Customerstrategy. We seek to bringour expertise closer to thedoorsteps of our customersand establish morecollaboration with them so asto further add value to theprojects secured.InfrastructureThe increasing adoption ofwaste-to-energy (WTE)solutions as a practical andeffective means for wastemanagement in China willprovide ample prospects forproven technology providersto grow. Capitalising onthe drive for sustainabledevelopment, KeppelIntegrated Engineeringgroup continued tocapture opportunities in theimported WTE solutionsmarket in China.Tapping on growingelectricity needs inSingapore, Keppel Energyhas started to plan theexpansion of its existing500 MW Keppel MerlimauCo-generation Plant. It hasrecently signed long-termKeppelite I April 2010

Sustaining Growth 9contract to purchase LNGfrom British Gas.Asia Pacific’s growth inmanufacturing activities,urbanisation and domesticconsumption will drivedemand for logistics. Theregion’s share of globallogistics will grow from 36%in 2009 to 43% by 2013.We will explore areas forexpansion of our logisticsnetwork and footprint byfocusing on key growthmarkets of China, Vietnamand Indonesia.PropertyContinuing the momentumfrom 2009, the Singaporeresidential market remainedhealthy in the first quarterthis year, registering robusthomes sales at higherprices. Supported by risingaffluence and favourabledemographics, demandfor homes in the region,particularly in China,remained strong.As business confidencereturned, the Singaporeoffice segment witnessed ahealthy level of leasingactivity with a bottoming outof rental rates during thequarter. Our property armbenefited from this improvedsentiment with its portfolioof quality office projects.With the latest take-up ofspace by Barclays Capitaland Prudential AssetManagement, Phase 1 ofMBFC is now practicallyfully leased. The good precommitmentlevels achieved,with well-regarded tenants,are testament to MBFC andOFC as coveted businessaddresses in Asia.Riding on the recovery fromglobal recession and theresilience in demand forhomes in Asia, we will seekacquisitions in selectedmarkets with focus ondeveloping quality residentialand township projects. In linewith the asset-light, feebasedincome strategy, ourproperty fund managementvehicles have recently madeacquisitions to increaseincome and geographicaldiversification of theirportfolios.OUTLOOKWe have started the yearwith a good set of results.We will work to fortify ourcollective strengths andcapabilities across theDivisions, and enhancesustainable growth in ourvarious businesses. keppeliteAcquisitions and investments in overseas yards such as the Nakilat-Keppel Offshore & Marine facility will reinforce Keppel’s Near Market, Near Customer strategyKeppelite I April 2010

10 Sustaining GrowthStrong earnings growth for propertyRecovery in property markets across Asia underpinned Keppel Land’s1Q 2010 results, while K-REIT Asia benefitted from the returning businessconfidence to the Singapore office segment.EARNINGS UPKeppel Land achievedgood results for the quarterended 31 March 2010,bolstered by recovery inthe property markets acrossAsia. Net profit for the firstquarter grew by 75.3% to$64.7 million compared with$36.9 million achieved in thefirst quarter of 2009.Residential sales in Singaporeand overseas remainedrobust. Net profit fromproperty trading grew by53.6% year-on-year to$48.7 million in the firstquarter. Contribution camemainly from Reflections andCaribbean at Keppel Bay,Marina Bay Suites andMarina Bay Residences inSingapore, as well as TheArcadia and Villa Riviera inChina.With recovery in the officemarket, net profit fromproperty investment rose29.2% year-on-year to$12.4 million, due largely tohigher contribution fromK-REIT Asia. Higher feeincome from K-REIT AsiaManagement and AlphaInvestment Partners boostednet profit from fundmanagement activities to$7.4 million, up 60.9% fromthe same period last year.With demand increasing forpremium residences in closeproximity to the integratedMarina Bay Suites will benefit from interest generated by the opening of integrated resort, Marina Bay SandsKeppelite I April 2010

Sustaining Growth 11resorts, Reflections at KeppelBay has achieved strongtake-up, with 97% of 760launched units sold to date.The group plans to launchanother 100 to 200 units atReflections during the year.Marina Bay Suites will berolled out with the openingof Marina Bay Sands.Grade A developments arebenefitting from the “flightto quality” trend as MarinaBay Financial Centre (MBFC)and Ocean Financial Centre(OFC) chalked up increasedcommitments.Prudential AssetManagement and Nomuraare the latest to sign up forspace at MBFC. Togetherwith further commitmentfrom Barclays Capital, MBFCPhase 1 is fully leasedexcept for a small percentageof space reserved forexisting tenants’ expansion.This brings the overallcommitment rate for MBFCPhases 1 and 2 to about78%. OFC has also increasedits total commitment rateto 31%.Take-up remained strongfor the group’s townshipprojects in China. Phase 5 ofThe Botanica in Chengdusold all 376 units whenlaunched in early April.Pent-up demand for qualitylanded homes in Vietnamled to strong sales forRiviera Cove with 83% of82 launched units sold.Take-up at Jakarta GardenCity in Indonesia was alsorobust, with 72 units sold inthe first quarter. In total,77% of the 580 launchedunits were sold.The group’s fundmanagement vehiclescontinue to grow withstrategic acquisitions. K-REITAsia acquired a 50% stake in275 George Street, Brisbane,Australia while AlphaInvestments Partner’s AlphaAsia Macro Trends Fund hasbought a 77% stake inKatong Mall in Singapore.Capitalising on the economicspin-offs from ShanghaiWorld Expo, Keppel Landwill launch The Springdalein Nanhui in the secondquarter, and two blocks at8 Park Avenue in the secondhalf of the year. Tapping oncontinued demand fortownship homes, the groupwill also launch the newphases of The Botanica andCentral Park City in Wuxi inthe second quarter.STEADY PERFORMANCEBY K-REIT ASIAK-REIT Asia achieved adistributable income of$17.8 million for 1Q 2010, a13.8% increase from that forthe same period in 2009. Thiswas due mainly to the highernet property income andincome contribution fromOne Raffles Quay Pte Ltd(ORQPL).Net property income rose28.4% year-on-year to$13.9 million in 1Q 2010.Take-up for Keppel Land’s township homes in China, such as The Botanica in Chengdu, hasbeen strongThis was due to higher rentalincome from the additionalsix strata floors of PrudentialTower and the one-monthincome contribution from275 George Street, Brisbane,Australia. The average grossmonthly rent of K-REIT Asia’sportfolio in Singapore rose to$8.30 psf in March 2010, upfrom $8.16 in December2009.Distribution Per Unit (DPU)for 1Q 2010 was 1.33 cents.This was 12.7% higherthan the 1.18 cents DPU for1Q 2009, restated to takeinto account the effects ofthe rights issue completedin November 2009. Thistranslates into an annualisedDPU of 5.39 cents whichis 12.5% higher than4.79 cents for 1Q 2009.K-REIT Asia is well-positionedto benefit from the uptickin economic growth andpositive spin-offs in theoffice sector as Singaporetransforms into a globalcity, diversifying beyond afinancial hub to establishmulti-hubs in variousindustry sectors. It will alsocontinue to actively pursueopportunities for strategicacquisitions in Singapore andother growth cities withinpan-Asia. keppeliteKeppelite I April 2010

12 Sustaining GrowthDriving broad-based growthKeppelite highlights questions and answers shared at Keppel Corporation’sfirst quarter results webcast.ON OFFSHORE & MARINECCB: All segments in ourOffshore & Marine businesscontributed to the strongmargin expansion in thefirst quarter. We had astrong performance for thisperiod as we were able tocontain costs and keepthem down during executionof projects. As we havebuilt both jackups andsemisubmersibles of repeatdesigns, this improvesproductivity and reducescosts as well.Although these high marginsare not sustainable in thelong haul as this is a verycompetitive business, we stillexpect decent margins forthe current projects we areworking on. It will be moredifficult for new projects.TSH: Capital expenditure(capex) on our three yards inBrazil, Caspian and theMiddle East is around US$50million. Capex for the MiddleEastern and Capsian yardsare not a lot as the former isbuilt by our partners, whilewe have a 10% stake in thelatter. As an existing yard, wehope that the Brazilian TWByard will contribute to theGroup’s earnings in the next12 to 18 months whenprojects are completed.TCH: The weather last yearwas a lot bleaker, but thisSeed asset Senoko Waste-to-Energy Plant has been transferred into the K-Green Trust, which aims to provide long-term, regular and predictabledistributions to unitholders when listed on the Singapore Exchangeyear there is a bit of shine.We are working very hardand we hope that theorders should be more than$2 billion this year.ON NEW BRAZILIANYARDCCB: Petrobras does notnormally own new supplyvessels as they prefer tocharter them. These are fairlylong-term charters and aregiven to different operators,most of which are fromoverseas. From nowonwards, the Braziliangovernment and Petrobraswant most of these vesselsto be built in Brazil. There arefew yards with capabilities tobuild such sophisticatedvessels in Brazil, hence, weare investing in a yard thatcan do so. We expect to havea fair share of the work whenwe are ready to produce thevessels.ON K-GREEN TRUSTTSH: The listing is on trackand will be in the secondquarter of this year. We areworking with the regulatorson this.ON CO-GENERATIONPLANT EXPANSIONOTG: We have the licenseto develop the KeppelMerlimau Co-generationPlant up to an additional900 MW. It is likely that wewill expand in two phases,the first being 450 MW. Weare currently in the processof calling for tenders andour plan is to commenceKeppelite I April 2010

Sustaining Growth 13construction by end of theyear. Commercial operationswill be in 2013.CCB: If more players wish toadd capacity, Singaporeregulators will be very happyas this will increasecompetition in the marketand this, in turn, will be goodfor consumers. The mostcompetitive will win.ON LOGISTICS BUSINESSPHH: The logistics segmentintends to expand intogrowth areas, especially inChina and Vietnam. Weare also looking atprospects in Indonesia. Weintend to increase ourdistribution andwarehousing capacities, aswell as to expand ournetworks in those areas.ON PROPERTY MARKETKW: We are very positive onthe property sector and wesee that the contribution tothe Group will increase overtime. keppeliteCCB – Mr Choo Chiau Beng,CEO of Keppel CorporationTSH – Mr Teo Soon Hoe,Senior ED and Group FinanceDirector of Keppel CorporationTCH – Mr Tong Chong Heong,ED of Keppel Corporation andCEO of Keppel Offshore &MarineOTG – Dr Ong Tiong Guan,MD of Keppel EnergyPHH – Mr Pang Hee Hon,CEO of KeppelTelecommunications &TransportationKW – Mr Kevin Wong, GroupCEO of Keppel LandKeppel T&T seeksgrowth opportunitiesKeppel Telecommunications& Transportation’s(Keppel T&T) revenue at$25.4 million was 15%lower compared to thecorresponding quarter in2009. The decrease was dueto the loss of a majorcustomer in mid-2009 in theLogistics Division and thewinding down of theNetworks Division.Operating profit improvedsignificantly due to betteroperating margins. Profitbefore tax and exceptionalitems rose 33% to$17.0 million due to higheroperating profit andcontributions fromassociated companies. Aftertaking into considerationtaxation and exceptionalitems, the company’sprofit increased 26% to$13.6 million.Keppel T&T will continue todevelop its logistics assetsto maximise returns. Inaddition, port operations inFoshan, China are expectedto operate at maximumcapacity and its newdistribution centre is on trackto be operational in thesecond half of the year.In Vietnam, the company isexpanding its logisticsoperations together with itspartners and will exploreexpansion opportunities fordata centres in Singapore.The data centre in Irelandcontinues to enjoy fulloccupancy. Preparations forthe group’s data centrefund are progressing well.Keppel T&T will explore expansion opportunities for data centres in SingaporeThe company continuesto remain prudent inmanaging costs andimproving operationalefficiency, while seekinggrowth opportunities. keppeliteKeppelite I April 2010

14 Sustaining GrowthNew contracts fromrepeat customersKeppel Offshore & Marine(Keppel O&M) throughits subsidiaries, KeppelShipyard, Keppel FELS andKeppel Verolme, hassecured contracts worth$300 million.These contracts are for twoFloating Production Storageand Offloading (FPSO)conversions, a livestockcarrier conversion and repairsand modifications for twosemisubmersibles (semi).Mr Tong Chong Heong,CEO of Keppel O&M, said,“We would like to thankour customers for theircontinued support and trustin Keppel O&M and oursubsidiaries.“Our Near Market, NearCustomer strategy not onlyallows us to respond swiftyto the needs of our globalcustomers, it also enables usto gain a keen understandingof the offshore environmentsin which they operate.“This intimate knowledge oftheir operational challengesenables us to add value tothe projects entrusted tous.“The fact that our customerskeep returning to Keppelyards across the world,reinforces our strategy andposition as their preferredglobal solutions partner.”FPSO CONVERSIONSKeppel Shipyard wascontracted by the SBMGroup to convert a VeryLarge Crude Carrier, M/TBauhinia, into an FPSOfacility. The FPSO is beingdeveloped for an oil fieldin offshore EquatorialGuinea.Work on the FPSO isexpected to commence inthe second quarter of 2010and be completed inthe third quarter of 2011.Keppel Shipyard’s scopeincludes refurbishment andlife extension works,accommodation blockextensions, the fabricationand installation of a flaretower, an internal turret andtopside module supports, aswell as the installation andintegration of topsidemodules.Mr Tony Mace, CEO of SBMOffshore, said, “Havingworked with KeppelShipyard since 2001, weremain impressed with itsability to deliver projectssafely and to our satisfaction.This is true of the threeprojects it delivered to usrecently and I am confidentthat this FPSO will match thesame high standards.”Keppel Shipyard will also beundertaking the upgradingand conversion of a Suezmaxtanker into an FPSO forrepeat customer BumiArmada Berhad (BumiArmada).The successful delivery of projects, such as FPSO P-57 (above), and the recent winning of the M/T Bauhinia conversion project demonstratethe strong partnership between Keppel Shipyard and the SBM GroupWork on the FPSO isexpected to commence inthe second quarter of 2010.Keppelite I April 2010

Sustaining Growth 15The work scope includesrefurbishment and lifeextension works, fabricationand installation ofaccommodation blocks,turret support structure andtopside modules, upgradingof auxiliary support systemsand installation of ownersupplied equipment.When completed in thesecond quarter of 2011, thefacility will be able toKeppel Shipyard is converting a vehicle carrier into a livestock carrier for repeat customerHijazi & Ghosheh GroupBack for repair and upgrading works, Stena Clyde was previously at Keppel FELS for specialperiodic survey works in 2000 and 2005produce up to 45,000 barrelsof oil per day and store1,000,000 barrels of oil. It isbound for deploymentin offshore Vietnam forHoang Long Joint OperatingCompany.Mr Hassan Basma, ED andCEO of Bumi Armada, said,“We are pleased to workwith Keppel again as it’s atrue partnership built ontrust; a collaboration thatfocuses on quality and timelydelivery.”LIVESTOCK CARRIERCONVERSIONBelonging to Merlion AceCompania Naviera S.A,vehicle carrier Merlion Acewill be given a new purposewhen converted into alifestock carrier by KeppelShipyard. Merlion AceCompania Naviera S.A is anaffiliate of Hijazi & GhoseshGroup, a world leadinglifestock carrier owner andoperator.The work scope includesdesign engineering,procurement of majorequipment, and modificationof ship structural, piping andelectrical systems. To berenamed Ghena, the vesselis targeted for completion inthe third quarter of 2010,and will ply the routebetween Australia and theMiddle East.Mr Issam Hijazi, President ofHijazi & Ghosheh Group,said, “We are glad tobe working with KeppelShipyard again following theconversion of the Maysoralivestock carrier in 2001. Wehad a rewarding experiencewith the team who haslived up to the reliabilityand exceptional servicethat Keppel Shipyard iswell-regarded for. Welook forward to anotheroutstanding job on theGhena livestock carrier, andmore projects together.”SEMISUBMERSIBLEMODIFICATIONSKeppel FELS and KeppelVerolme have each secureda semi repair andmodification project fromStena Drilling.Keppel FELS will beperforming repairs and majorupgrading works on thedrilling semi Stena Clyde.Arriving in April 2010, workon the semi includes a specialperiodic survey, main enginereplacements and a mooringwinch system upgrade.The semi will return to itsdeployment in Perth,Australia for ApacheCorporation, upon itsexpected completion in June2010. Stena Clyde waspreviously at Keppel FELS forsimilar special periodic surveyworks in 2000 and 2005.Over in the Netherlands,Keppel Verolme will carry outrepair and maintenanceworks on the drilling semi,Stena Don. Work on StenaDon is scheduled forcompletion in the secondquarter of 2010. keppeliteKeppelite I April 2010

16 Sustaining GrowthAsia’s best business address takes shapeMarina Bay Financial Centre (MBFC) celebrates the topping out of its 50-storeyTower Two.Minister for Finance Mr Tharman Shanmugaratnam (centre) and members of the JV consortium including Mr Kevin Wong, Group CEO of Keppel Land (second from right), ‘stamp’ their mark ofconfidence in MBFC on a commemorative plaqueLandmark properties suchas MBFC will supportSingapore’s growth as afinancial centre over thenext era of its economicdevelopment. This wasshared by Mr TharmanShanmugaratnam, Ministerfor Finance, who was theGuest-of-Honour at MBFCTower Two’s topping outceremony on 13 April 2010.Joining Minister Tharmanat the ceremony weremembers of the JVconsortium includingMr Justin Chiu, ED ofCheung Kong (Holdings)Limited, Mr YK Pang, ChiefExecutive of Hongkong Landand Mr Kevin Wong, GroupCEO of Keppel Land, as wellas Mr Teruaki Yamaguchi,Senior Executive Officer ofKajima Corporation, themain contractor for thedevelopment.Dr Lee Boon Yang, Chairmanof Keppel Corporation andMr Tong Chong Heong, EDof Keppel Corporation andCEO of Keppel Offshore &Marine were also present atthe event.It is really a new destination forwork, live and play – a new part ofSingapore that is going to be adriver in its own grounds, for people,for business, and for lifestyle option.Mr Tharman ShanmugaratnamMinister for Finance, SingaporeIn his speech, MinisterTharman shared, “Thebusiness and financial districtthat we envisioned someyears ago is becoming areality. It is also part of theincreasing life that we areseeing in the whole newspace in Singapore that wecall Marina Bay.”Mr Wilson Kwong, CEOof Raffles Quay AssetManagement, whichmanages the development,said, “With its strategicKeppelite I April 2010

Sustaining Growth 17location in the Marina Bayand proximity to RafflesPlace, MBFC is a covetedaddress for businesseslooking at capitalising onthe buzz in the Marina Bayarea. Attractions like theMarina Bay Sandsintegrated resort, Art Park,Art Science Museum, thelush greens of the CentralOpen Space, as well as yearround activities willdefinitely see to fruition anew 24/7 vibrancy to theMarina Bay area.“These and more will propelSingapore’s growth as aglobal business and financialhub and in turn drive thedemand for office and retailspaces and inner urban cityliving in MBFC.”Some of the tenants atTower Two include AmericanExpress, Bank Pictet, BHPBilliton, ICAP, Macquarie,Murex, Nomura, OCBC RetailBanking, Servcorp, BarclaysCapital and Prudential AssetManagement (Singapore)(read box story).MBFC comprises threecommercial towers, whichtogether offers nearly threemillion sf of prime Grade Aoffice space. It also includestwo residential towers, thefully-sold Marina BayResidences and soon-to-belaunched Marina Bay Suites,as well as the 176,000-sfMarina Bay Link Mall whichhas already garnered 65%pre-commitment. keppeliteTowers One and Two are fully leasedBarclays Capital hasextended its commitmentand Prudential AssetManagement (Singapore)(PAMS) has signed on. Assuch, MBFC’s Phase 1 isnow fully leased except fora small percentage ofspace reserved for existingtenants’ expansion. Phase1 consists of MBFC TowersOne and Two, which haveabout 1.6 million sf intotal office space.Barclays Capital added 10floors to approximately100,000 sf of office spaceit had committed to inApril 2008. With theaddition, Barclays Capitalis now slated to occupy14 floors of Tower Twofor 10 years, commencingin the first quarter 2011.Mr Quek Suan Kiat, Directorof Barclays Capital, said,“Our existing relationshipwith the landlord, and theproximity of MBFC TowerTwo to our current officespace at One Raffles Quaywere key factors in ourchoice of location. We seethis consolidation of space asbeneficial to our employeesand for service delivery to ourclients.”Meanwhile, PAMS has leasedapproximately 37,000 sf ofspace in Tower Two, fornine years starting in 2011.Mr Ted Pull, CEO of PAMS,cited the opportunity to bepart of a prestigious businessaddress and close proximityto other financial servicesindustry players as MBFC’sattraction.Global names such as American Express, Bank Pictet, BHP Billiton, ICAP, Macquarie,Murex, Nomura, OCBC Retail Banking, Servcorp, Barclays Capital and Prudential AssetManagement (Singapore) will soon occupy MBFCKeppelite I April 2010

18 Sustaining GrowthEncore performancesAmidst another busy yearof ongoing projects,Keppel Offshore & Marineyards continually improveoperational excellence todeliver quality vessels to meetcustomers’ needs.EXCEEDINGEXPECTATIONSTopped with a perfect safetyrecord, the 43-days earlydelivery of the state-of-theartMaersk Deepwater SemiIII to Maersk Drilling (Maersk)has garnered Keppel FELS abonus of US$400,000. Thisis the third unit in a series ofthree semisubmersible (semi)rigs that has been built byKeppel FELS in Singapore.Jointly developed andowned by Keppel’sDeepwater TechnologyGroup and Marine StructureConsultants, the DSS TM Seriesof deepwater rigs is designedfor maximum uptime withreduced emissions anddischarges.GOLAR FREEZE SAILSOUTKeppel Shipyard hassuccessfully completed itsthird consecutive FloatingStorage and RegasificationUnit (FSRU) conversion forGolar LNG without lost-timeincidents. Golar Freeze setsail from the yard on 17 April2010.Kelvin Ang, Project Managerat Keppel Shipyard, said,“Having already completedtwo FSRUs for Golar, wewere able to improve ourprocesses and efficiencywith Golar Freeze. This isa significant addition toKeppel Shipyard’s trackrecord in specialised LNGconversions.”Commenting on therelationship with Keppel,Mr Arvid Nygaard, SiteManager of Golar LNG,shared, “We are pleased toreceive our third FSRU fromKeppel Shipyard. FSRUsGolar Spirit and GolarWinter have been operatingsuccessfully in theirrespective networks and welook forward to Golar Freezedoing the same.Mr Claus V. Hemmingsen,CEO of Maersk, said, “Withthe addition of MaerskDeepwater Semi III, our highspecificationDSS TM 21 rigfleet which is in the leagueof some of the world’s mostadvanced deepwater rigs willhelp position Maersk as theleading offshore solutionsprovider in the industry.”Mr Tong Chong Heong, CEOof Keppel O&M, added, “Thesafe and early completion ofMaersk Deepwater Semi IIIattests to the astute choicemade by Maersk to build thepremium fleet with KeppelFELS, as well as the solidarityand calibre of our teamsworking hand in glove withone another.”Commemorating the delivery of the DSS TM 21 Maersk deepwater semi rig are Mr WongKok Seng (second from right), ED of Keppel FELS and Mr Gregers Kudsk (second from left),Technical VP of Maersk, witnessed by Mr Tong Chong Heong, CEO of Keppel O&M andMr Frederik Smidth, Chief Technical Officer of Maersk“The successful integrationof the FSRU technology istestament to the goodpartnership we have withKeppel Shipyard and this hasbeen manifested in thetimely delivery and exemplarysafety record of the vessel.”keppeliteKeppel Shipyard augments its growing track record for FSRU conversions with the completion of Golar FreezeKeppelite I April 2010

Sustaining Growth 19Global rig repair specialistFrom all over the world,customers send their rigs toSingapore’s shores for repairservices at Keppel FELS.Concurrently, the yard alsodeploys its elite Flying Squadglobally to undertake repairsof offshore rigs of all sortsand sizes.Renowned to be safe, quickand cost-effective, theserepair services continue towin customers’ trust at homeand abroad and hence,fortifies Keppel FELS’ssteadfast name as theleading global rig repairspecialist.GOING THE DISTANCEEven with the associatedtime and costs involvedwhen towing their rigsto Singapore, customersworldwide continue toplace their rigs underKeppel FELS’s care, won overby the yard’s reliable trackrecord and high level ofefficiency.Songa Offshore’ssemisubmersible (semi)drilling unit, Songa Venus,was one such rig whichtravelled from Australia toSingapore for a specialperiodic survey.Backed by Keppel FELS’sstrong project managementcapabilities and rigconstruction and repairexpertise, the repairs onSonga Venus werecompleted on time andwithin budget on 15 March2010 after 45 days. This hadenabled the rig to return towork in offshore Australia inthe shortest possible time.FLYING TO THE RESCUEKeppel FELS’s elite FlyingSquad was recently laudedfor its exceptional 18-dayoffshore repair workonboard Diamond Offshore’sjackup rig, Ocean Heritage,conducted in March 2010at Cairo, Egypt.Mr Paul J. Agnew, SeniorProject Engineer at DiamondOffshore, commended theFlying Squad, “I would liketo express my appreciationand thanks to the KeppelFELS crew under thesupervision of Sim KongPeng for their excellentperformance in the repairs tothe damaged leg braces onthe Ocean Heritage. Theirknowledge and expertisewas instrumental to thesatisfactory completion ofthe project.” keppeliteDrawn by Keppel FELS’s expertise and reliability in repair work, customers like Songa Offshorebring their rigs to the Singapore yard despite costs and time involved in towageOcean Heritage returns to operational mode following timely repairs undertaken by KeppelFELS’s offshore repair specialists, the Flying SquadKeppelite I April 2010

20 Sustaining GrowthCutting an edge in QatarLeveraging the expertise and resources of its businesses, the Keppel Group isproviding choice offshore and marine, and environmental solutions to Qatar.SERVICING THE QATARINAVY’S FLEETNakilat-Keppel Offshore &Marine (Nakilat-KeppelO&M) has signed aMemorandum ofUnderstanding (MOU) withthe Qatari Navy to providerepair services to its militaryand auxiliary fleet.These repairs will be carriedout at Nakilat-Keppel O&M,a shiprepair and shipbuildingfacility in the Port of RasLaffan, Qatar. Expected to beoperational in the fourquarter of 2010, Nakilat-Keppel O&M is the largestshiprepair yard in the country.Mr Muhammad Ghannam,Nakilat’s MD and Chairmanof Nakilat-Keppel O&Msaid, “The MOU with theQatari Navy is not only animportant milestone in thedevelopment and growth ofNakilat-Keppel O&M, it isalso a key initiative for theState of Qatar and movesforward the vision andforesight of His HighnessSheikh Hamad bin KhalifaAl-Thani to open Qatar’sdoors to direct foreigninvestment.”The MOU was signed on30 March 2010 during thesecond Doha InternationalMaritime Defence Exhibitionand Conference (DIMDEX)2010.SUPPORTING THE GASINDUSTRYQatar, the world’s leadingexporter of liquefied naturalgas, is making massiveinvestment in its natural gasfacilities. This will drive thegrowth of the region’smarine industry, includingmarine support services.To harness these growthopportunities, InternationalEnterprise Singaporeorganised a business missionfor 14 Singapore-basedmarine support servicescompanies. Keppel Offshore& Marine (Keppel O&M) wasasked to host the visitingdelegation.Mr Yong Chee Min, CEO ofNakilat-Keppel O&M, said,“Our JV with Nakilat marksthe first partnership forKeppel O&M in Qatar and isin line with our strategy tobe near our customers andmarkets. This collaborationnot only adds value to Qatar’sgrowing oil and gas sector, italso plays a role in developingits marine and marinesupport services industries.Qatar Emiri Naval Force’s Staff Brigadier (Sea) Mohammed bin Nasser Al-Mohannadi (left), Nakilat-Keppel O&M’s CEO Mr Yong Chee Min (second from left), Nakilat-Keppel O&M ChairmanMr Muhammad Ghannam (fourth from left) and HE Chief of Staff of the Qatari Armed Forces Major General Hamad bin Ali Al-Attiyah (extreme right) at DIMDEX 2010Keppelite I April 2010

Sustaining Growth 21Keppel management with HE Abdullah bin Hamad Al-Attiyah (fourth from left), Deputy Prime Minister and Minister of Energy and Industry of Qatar. Standing alongside are Mr Umej Bhatia(fifth from left), Charge d’affaires a.i. from the Singapore Embassy in Qatar, and Muhammad Ghannam, Nakilat-Keppel O&M Chairman (extreme right)“We are pleased to see keeninterest from Singapore-basedcompanies to provide marinesupport services to Nakilat-Keppel O&M’s shipyard. I amcertain that we can leverageour competencies to providevalue-added solutions to theregion.”STRENGTHENING BONDSDeepening Keppel’s tiesin Doha, Qatar, seniormanagement met withseveral important figures inMarch 2010.The Keppel delegationcomprised KeppelCorporation ChairmanDr Lee Boon Yang, KeppelCorporation CEO Mr ChooChiau Beng, Keppel O&MCEO Mr Tong Chong Heong,and Nakilat-Keppel O&MCEO Mr Yong.At Qatargas, the delegationwas welcomed by Mr FaisalM. Al Suwaidi, Vice Chairmanand CEO, who reaffirmedQatargas’ commitment toestablish strong partnershipswith Keppel.In a meeting with Qatar’sDeputy Prime Minister andMinister of Energy andIndustry, HE Abdullah binHamad Al-Attiyah, theDeputy Premier spoke abouthis recent tour of Nakilat-Keppel O&M’s yard andexpressed that he wassatisfied with its progress.The delegation visited theNakilat-Keppel O&M yard, aswell as Keppel IntegratedEngineering’s Domestic SolidWaste Management Centreand Doha North SewageTreatment Plant. keppeliteTransfering expertiseA batch of traineesfrom Keppel IntegratedEngineering (KIE)completed an intensivethree-month operationsand maintenance trainingprogramme on waste-toenergyfacilities.These 27 employees will beheading to Qatar, whereKIE is executing two largescaleenvironmentalprojects, Domestic SolidWaste ManagementCentre and Doha NorthSewage Treatment Works.The course’s best trainee,Nay Lynn Oo, looksforward to working inQatar. He said, “Afterthree months of training,we are eager to put whatwe have learnt intopractice.”Addressing the trainees,Mr Michael Chia, DeputyChairman and CEO of KIE,said, “Through our Qatarprojects, you will begaining a lot of valuableexperience. Growing intandem with the Group’sexpansion in overseasmarkets, the possibilitiesfor personal growthand development areimmense.”Keppelite I April 2010

22 Special FocusThe People QuotientExchanging ideas and views with Keppel’s top management formed part of an invaluable learning experience for the GAMP participantsWith people as a core asset,Keppel adopts a holisticapproach towards hiring,developing and motivatingits employees, aligning themwith a common set of corevalues to influence behaviorand shape the corporateculture of our operationsacross the globe.In continuous effortsto identify areas ofimprovement, a number ofinitiatives and programmeshave been and are beingrolled out to educate,empower and energiseKeppelites to prepare themfor the next level of growth.SCORING AS EMPLOYEROF CHOICETo garner employeefeedback, a Group-wideOrganisational ClimateSurvey (OCS) was conductedfrom October to December2009. The survey builds onan annual exercise which hasbeen conducted by KeppelOffshore & Marine (KeppelO&M) since 2005.A near 90% response wasachieved from a representativesample of 3,000 employees.The sample size determinedwere in accordance to thepercentage of employeesthat each business unitcomprises relative to thewhole Keppel Group.Business units with relativelysmall workforce of less than500 administered the surveyto all employees. The highresponse rate shows thatemployees see value inproviding feedback on theirviews and areas forimprovement.The Company achievedhighest average score inthree categories: Safety &Environment, InternalCommunication andAttitude, Motivation andMorale.Areas for improvement ofinterest to Keppelites areHealth & Work-Life Balance,Total Rewards Strategy andTraining & Development.The OCS provides anotheruseful tool for the Companyto review and refine policiesand programmes to reinforceits position as an employerof choice.LEARNING TO LEADThe Keppel Collegecentralises the Group’sprogrammes for leadershipand executive development.The second run of theKeppel Global AdvancedManagement Programme(GAMP), an executivedevelopment flagshipprogramme, was held underthe auspices of KeppelCollege for 34 participantsfrom 22-29 March 2010.GAMP is conducted forKeppel’s management staffacross the Group incollaboration with NanyangTechnological University’sKeppelite I April 2010

23Nanyang Business School.It involves customisedprogrammes to help sharpenbusiness and managementskills to effectively lead andcreate high performingteams.Given Keppel’s globalpresence that spans morethan 30 countries, it is littlewonder that participantscomprised a diverse globalmix – from regional countriessuch as the Philippines, Chinaand India to Belgium, theNetherlands, the US, Braziland Kazakhstan.Over the course of theprogramme, participantsbrainstormed on businessissues and strategies usingmanagement conceptslearnt during interactivelectures. They also visited thefacilities of the variousKeppel business units to gaininsights of their operations.Continues on page 24...Results of the Organisational Climate SurveyResponse rateBUSINESS UNIT KEPPELITES MANAGEMENT SENIOR OFFICER / JUNIOR TOTALSURVEYED & ABOVE EXECUTIVE STAFFKeppel Corporation 120 63.2% 95.6% 94.7% 91.4%Keppel O&M 1,863 82.9% 76.5% 100% 91.0%Keppel Integrated Engineering 374 100% 67.3% 100% 82.6%Keppel T&T 67 100% 69.7% 100% 88.1%Keppel Energy 95 52.1% 83.0% 76.2% 80.0%Keppel Land 481 74.8% 100% 80.0% 83.8%Overall 3,000 87.2%Average scores6.005.004.004.524.524.39 4.48Neutral score4.654.694.22 4.234.174.904.274.544.643.002.001.000.00Organisation Culture and ValuesWork EnvironmentManagement-GeneralManagement-Employee RelationsAttitude, Motivation and MoraleTotal Rewards StrategyTraining & DevelopmentInternal CommunicationRecognition and Job PerformanceSafety & EnvironmentHealth & Work-Life BalanceManagement-Union RelationsEmployee EngagementKeppelite I April 2010

24 Special Focus...continued from page 23.Mr Ivan Christiaens, GMfrom Keppel SeghersBelgium NV, shared, “GAMPwas a valuable experience. Itwas good meeting so manytalented and motivatedKeppelites from all over theworld, and I look forward tomore of such networkingand exchange opportunitiesin the future.”Peter van Wijk, ProductionManager, Keppel Verolme,could not have agreed more.He said, “I’ve learnt a lot thisweek. I have been enrichedby not only the formallessons but also the insightsand different views of fellowKeppelites.”mastery, strategic importanceof human capitalmanagement, talent andsuccession management andmentoring as well as theKeppel core values. A widevarietyof activities such as roleplayingand sharing sessionswere conducted to enhancethe learning experience.The workshop culminated ina presentation session inwhich the participants sharedtheir learning points, insightsand recommendations.Attending the session wereKeppel Corporation topmanagement as well as HRmanagement from thevarious business units.Mr Choo Chiau Beng, CEO of Keppel Corporation, encourage Keppelites to seek continuousimprovementThe projects presentationcum graduation ceremonyheld at the end of GAMPwas attended by topmanagement across Keppel,including Mr ChooChiau Beng, CEO of KeppelCorporation, Mr Teo SoonHoe, Group Finance Directorof Keppel Corporation, andMr Tong Chong Heong,CEO of Keppel O&M.Addressing the GAMPparticipants, Mr Choo said,“We must have the mindsetthat we can always improveand do things better.”He added that this challengeof continuous improvementcan be partly met bymaximising our strengths,overcoming our weaknesses,learning from ourcompetitors and keepingabreast of the ever-changingbusiness environment.At the project presentationsession, participants sharedtheir thoughts onmanagement issues andchallenges faced by theGroup, including pertinentlearning points they hadgleaned from GAMP andwould apply to theirrespective markets andoperations.EMPOWERING OTHERSRecently, Keppel Collegealso conducted the third runof its in-house ImprovingPeople Quotient for Leadersworkshop, designed toimpart essential humanresources (HR) and peoplemanagement skills.During the two-dayworkshop, 22 newlypromoted line managersfrom the various businessunits engaged in rigorousdiscussions on topics such aspersonal and interpersonalThe exchange during thepresentation proved thatthere are always new ideasto learn and draw upon fromall levels of leadership.INSPIRING NEW BLOODThe Keppel Group’sScholarship Tea is anopportunity for prospectivescholars to meet andinteract with Keppelites andget up close to the Group’soperations and facilities.Held on 27 March 2010, over70 prospective scholarsattended the event.I have been enriched by not onlythe formal lessons but also theinsights and different views ofmy fellow Keppelites.Peter van WijkProduction ManagerKeppel VerolmeKeppelite I April 2010

25The Scholarship Tea sessionincluded site visits toReflections at Keppel Bayshow gallery as well asKeppel Shipyard andKeppel FELS’s facilities.Representatives from thevarious business unitsdelivered corporatepresentations. This wasfollowed by sharing ofinternship and workingexperiences by existingKeppel scholars.In his sharing, Wayne Siek,who works as Senior HSEOfficer at Keppel FELS,elaborated on how thescholarship provided himwith valuable internshipopportunities which hadamply prepared him forentry into the workforce.Subsequently, scholarshiprecipients of the 2009 cohort– Law Yi Ming, Ong CheeLam and Yeo Wei Zhengshared on the merits of theKeppel Group Scholarship.The Scholarship Tea was a platform for prospective scholars to meet Keppelites and learn more about their experiences with the GroupGerard Lim, a GraduateEngineer in the ProcessExcellence department atKeppel FELS, who had sharedat the Scholarship Tea, saidthat he was glad to havehelped these young talentsbetter understand Keppel.At the same time, theScholarship Tea provided himwith the opportunity to workclosely with representativesfrom various business units.keppeliteKeppel Group scholar, Samuel Chong (second from left), an Engineer at Keppel Shipyard, shares his internship and working experiencesKeppelite I April 2010

26 Sustaining GrowthStrengthening global networkKeppel exchanges knowledge and experience with visitors from far and wide.Students and professors from the Norwegian University of Science and Technology visitKeppel O&M to learn from the company’s international experiencePresident of the State Oil Company of Azerbaijan Republic (SOCAR), Mr Rovnag Abdullayev(second from right), and Chairman of Keppel Corporation, Dr Lee Boon Yang (extreme right),touring the Reflections at Keppel Bay show-galleryGROWINGCONNECTIONSDeepening his appreciationof Keppel’s businesses whilein Singapore this month,was the President of theState Oil Company ofAzerbaijan Republic(SOCAR), Mr RovnagAbdullayev.Keppel Corporation’sChairman Dr Lee Boon Yanghosted the Azerbaijanidelegation. He wasaccompanied by seniormanagement includingMr Teo Soon Hoe, KeppelCorporation’s Senior ED andGroup Finance Director, andMr Tong Chong Heong,Keppel Offshore & Marine’s(Keppel O&M) CEO.This visit followed thegroundbreaking ceremony ofthe new SOCAR-KeppelShipyard in Baku, Azerbaijanearlier in March. Fortifying itspresence in the Caspianregion, Keppel O&M hasjoined hands with SOCARto develop and managethe new 52-hectareshipbuilding and ship repairfacility.During his tour of thepicturesque Marina atKeppel Bay, Mr Abdullayevwas given a sneak preview ofBoat Asia 2010, Asia’s mostanticipated water lifestyleshow, which was openingjust a day after.Strolling across Keppel BayBridge, Keppel managementalso shared the company’shistory, which sprung fromthe old Keppel Shipyard inTelok Blangah, occupyingwhat is now Caribbean andReflections at Keppel Bay, aswell as the Keppel Islandacross the bridge.The evening concluded ingood cheer and high spiritsover dinner at Takumi Tokyoat Marina at Keppel Bay.INTERNATIONAL COURSEEager to learn about thedriving forces behind KeppelO&M’s international success,students and professors fromthe Norwegian University ofScience and Technology’sMaster of EngineeringScience, and Information andCommunication Technologyprogramme called at itshead office and yardsin Singapore.Through presentations anddialogue sessions, thedelegation was acquaintedwith Keppel O&M’soperations, research anddevelopment focuses andworking culture as well assome of the challenges it hasfaced.A guided tour of KeppelO&M’s yards rounded up theeducational visit. It waswonderstruck faces all aroundas the students got up closeand personal with theKeppelite I April 2010

Sustaining Growth 27mammoth rigs and vesselsberthed at the facilities.BRAZILIAN RELATIONSMr Choo Chiau Beng, CEOof Keppel Corporation andSingapore’s Non-ResidentAmbassador to Brazil,paid a friendly visit toMr Leonel Arcângelo Pavan,Governor of SantaCatarina, in mid-April2010. Also attended byother Brazilian stateofficials, the meetinghelped foster strongerSingapore-Brazil relations.keppeliteGovernor Luiz Henrique da Silveira (extreme right) giving Mr Choo Chiau Beng a warm welcomeDiversifying LNG sourceKeppel Merlimau Cogen(KMC) inked conditionalagreements to buyliquefied natural gas (LNG)from the BG Groupduring the groundbreakingceremony for Singapore’sfirst LNG terminal.Mr S Iswaran, Senior Ministerof State, Ministry of Tradeand Industry, and Ministryof Education, officiatedthe ceremony held on31 March 2010.Dr Ong Tiong Guan, MD ofKeppel Energy, signed theagreements on behalf ofKMC while Mr Iswaran andother dignitaries, includingthe CEO of KeppelCorporation, Mr Choo ChiauBeng, bore witness.KMC was one of sixcompanies that entered intolong-term gas purchasecontracts with the BG Groupfor an initial tranche ofaround 1.5 million tonnesper annum. This LNG supplyallows KMC to diversify itsenergy source.With regards to these initialLNG deals, Mr Iswarannoted, “This representsabout one quarter of thevolume presently importedby pipelines into Singapore.”The terminal is expected tostart operations in early-2013.It will be Asia’s first openaccessmulti-user terminal,capable of importing andre-exporting LNG frommultiple suppliers. keppeliteKMC diversifies its energy source through purchase of LNG from the BG Group, Singapore’s LNG supplier and gas demand aggregatorKeppelite I April 2010

28 Sustaining GrowthChina focusFacilitated by expansionarymonetary and fiscal stimuli,China continues to lead abroader Asian economicrecovery. The Keppel Group,with its growing presenceand network in China, iswell-positioned to capitaliseon business opportunitiesmushrooming in thiseconomic powerhouse.PROVIDER OF CHOICEHOMESThe Chinese property marketremains strong, underpinnedby sound fundamentals suchas rising household incomeand better-than-expectedemployment figures.The Arcadia, a villa development in Tianjin, has sold 88% of its launched residential units as at end March 2010Keppel Land is poised tomeet the aspirations ofChinese homebuyers. It hasa landbank of 7.2 million smin gross floor area spreadacross 10 cities whichtranslates to more than30,000 homes in thepipeline. For 2010, KeppelLand is planning saleslaunches for its projects inShanghai, Shenyang, Tianjin,Wuxi and Chengdu.Meanwhile, for theresidential township, TheBotanica in Chengdu, some376 launched apartmentswere sold in the firstweekend of April 2010 whilevilla development, TheArcadia in Tianjin, has sold88% of 115 launched unitsas at end March 2010.GATHERING INTERESTAgainst the backdrop ofincreasing interest inKeppel’s businesses, theGroup played host to11 journalists from Beijing,Shanghai and Guangzhoufrom 14 to 15 April 2010.The media delegation,representing business andlifestyle publications suchas Global Entrepreneur,21st Century Business Heraldand Guangzhou Daily, wasintroduced to Keppel’skey business units anddevelopments.To help them betterunderstand the Group’sbusinesses, they were briefedduring tours of Reflections atKeppel Bay’s show gallery,Marina at Keppel Bay, KeppelFELS yard and the KeppelSeghers Tuas Waste-to-Energy Plant.CONTRIBUTING TO TOPINDUSTRIAL PARKSThe Tianjin Economic-Technological DevelopmentArea (TEDA) has been namedthe top industrial park in Chinawhile the China-SingaporeSuzhou Industrial Park a closesecond out of 254 in a newset of ratings of China’sindustrial parks. The BusinessTimes reported on the 2010ratings which were publishedin the report – Manufacturing,Outsourcing and R&D in China– by research and consultingfirm China Knowledge.The parks are rated based onfive key criteria: the macroeconomicperformance of thelocal area; the level ofdevelopment of the park;local investment andoperational costs; local skilllevels and their availability andthe quality of managementand administration.According to the report,China’s industrial parksattract about one-third of thecountry’s realised foreigndirect investment annually.The China-Singapore SuzhouIndustrial Park, developedjointly in 1994 by thegovernments of Singaporeand China, has served as amodel for many of China’sindustrial parks. KeppelKeppelite I April 2010

Sustaining Growth 29had led the Singaporeconsortium in the China-Singapore Suzhou IndustrialPark.In Tianjin, the masterdeveloper of the Sino-Singapore Tianjin Eco-City(Tianjin Eco-City), Sino-Singapore Tianjin Eco-City Investment andDevelopment Co. is a 50/50joint venture between theSingapore Consortium led bythe Keppel Group, and theChinese Consortium led byTianjin TEDA InvestmentHolding Co Ltd. Located inthe Tianjin Binhai New Area,the 30-sq km Tianjin Eco-Cityis envisioned to create aharmonious and sustainablecommunity that meets theneeds of an urbanising Chinaand will be a moderntownship where 350,000residents can live, work andplay.The Chinese media delegation getting a taste of true waterfront lifestyle that is Keppel BayThe Keppel Group is the firstforeign property developer topush ahead with theconstruction of eco-homeson its 35.4-ha site in theStart-Up Area of the Sino-Singapore Tianjin Eco-City.Phase 1 consists of about1,700 homes with a totalGross Floor Area (GFA) ofabout 170,000 sm andcommercial facilities totallingabout 40,000 sm of GFA.keppeliteGaining insights into the offshore and marine industry at the Keppel FELS yardKeppelite I April 2010

30 Sustaining GrowthScoring tops in governanceGarnering a top spot inthe Governance andTransparency Index (GTI),Keppel Corporation camein fourth among 680companies that wereassessed.Other companies from theKeppel Group includingKeppel Telecommunications& Transportation, KeppelLand and M1 also scored wellat ninth, 13th and 42ndpositions respectively.Conducted by TheBusiness Times (BT) andthe Corporate Governanceand Financial ReportingCentre at the NationalUniversity of Singapore,the GTI awarded points fora range of corporategovernance features suchas director remunerationdisclosure and appointmentof a board-level riskcommittee.In a BT article, KeppelCorporation was cited tohave ‘scored points forappointing an independentchairman, havingindependent directorsindependent from majorshareholders and releasingits full year results earlier.’Mr Chaly Mah, President ofCPA Australia’s SingaporeDivision and CEO of DeloitteAsia Pacific, commented onthe top five companies ofthe GTI, saying that ‘thecommon theme amongthese companies is that theyall have ‘best in class’disclosure standards andtruly independent boards.’keppeliteDrilling in safety principlesincrease in workload andmanpower over the last fewyears. Indeed, its accidentfrequency rate has steadilyimproved from 1.73 to 0.11accidents per million manhoursworked from 2005 to2009.Safety champions from Keppel O&M help promote safety at the IADC Drilling HSE Asia Pacific 2010 Conference & ExhibitionKeppel partners its clients,workers and contractors tocreate and refine its safetymanagement systems.This was shared in apresentation by Mr TongChong Heong, CEO ofKeppel Offshore & Marine(Keppel O&M), at theInternational Association ofDrilling Contractors (IADC)Drilling HSE Asia PacificConference & Exhibition heldover 23 and 24 March 2010.Supportive of efforts to raisethe industry’s safetystandards, Keppel O&M wasa Platinum Sponsor of theevent.Mr Tong also touched onthe safety challenges ofthe offshore and marineindustry in a multi-culturalenvironment, as well as thestrategies Keppel O&M haveemployed to meet them.These strategies as wellas the co-operation ofstakeholders have enabledKeppel O&M to achieve andsustain good health, safetyand environment (HSE)records despite a significantJoining Mr Tong at theconference were otherKeppel management andsafety personnel, includingMr Wong Kok Seng, ED ofKeppel FELS, and Mr AbuBakar, Senior GM(Operations) at KeppelShipyard and Chairman ofthe Keppel Group’s Inter-Business Unit SafetyCommittee. Senior HSEManager at Keppel FELS,Derek Sim, was part of apanel which discussedshipyard safety for rigconstruction. keppeliteKeppelite I April 2010

Sustaining Growth 31Fortifying fundamentals,sustaining growthFocusing on how eachKeppel business unitfortifies its fundamentalsto ultimately achievesustainable growth formedthe theme of the Group’s2009 annual reports.Distilling the theme to helmall the reports, the taglineFortifying Fundamentals,Sustaining Growth wasadopted.As most global economiesmake their recovery from thedownturn, the annualreports provide clarity and abetter understanding to theinvesting community as thereports outline how theKeppel Group of companiesstrengthen their businessfundamentals.With firm fundamentals inplace – strong corporategovernance, soundfinancials, safety excellenceand high-quality talentdevelopment – Keppel hasbeen able to ride out thechallenges and emergestronger from this last crisis.Through all these, the Groupis laying a solid foundationfor sustainable growth.“Fundamentals” also alludesto how Keppel, through itskey businesses in Offshore &Marine, Infrastructure andProperty, provides solutionsto meet the fundamentalGroup Corporate Communications worked closely with managementand colleagues from the business units to produce a set of annual reportsthat provide pertinent and insightful informationneeds of communitiesworldwide for energy,quality homes and cleanenvironment.Keppel’s track record andinnovations for a cleanerfuture were elaborated in theKeppel Corporation annualreport special feature onOpportunities in theEnvironmental Business. Withsustainable and practicalsolutions, ecologicalchallenges can be mitigated toensure a better quality of life.On top of providing financialhighlights, strategicdirections and operating &financial reviews, the reportsalso covered the companies’efforts in contributing tothe well-being of theenvironment, society andcommunity.Keppel Corporation’ssustainability report citedthe company’s endeavourto build up a Group-widecorporate social responsibilityframework, which will help toimprove existing efforts andimplement even moreeffective programmes tobenefit stakeholders andreinforce the long-termsustainability of its businesses.In line with the Group’scommitment to embrace aneco-culture, the annualreports were printed onenvironmentally-friendlypaper and produced with aminimum content of 51%recycled paper. keppeliteKeppelite I April 2010

32 Sustaining GrowthLuxury shores at Keppel BayNestled on Singapore’s only private island, the exclusive Marina at Keppel Bayprovided the perfect backdrop for Boat Asia 2010.(From clockwise) Marina at Keppel Bay with its premium berths, facilities and services, hosts Boat Asia 2010, one of the most highly-anticipated luxury lifestyle events; (From left to right)Mrs Lim Hwee Hua, Minister in Prime Minister’s Office and Second Minister for Transport and Finance, Mr Teo Soon Hoe, Senior ED and Group Finance Director, Keppel Corporation,Mr James Egan, General Manager of Horizon Yachts, Ms Wang Look Fung, GM of Group Corporate Communications of Keppel Corporation, and Mr Herman Ho, MD of TMX Show Productions,getting ready for a leisurely sail aboard SunCat 23, a solar powered electric boat; Thronged by boat and sailing aficionados, Boat Asia 2010 showcased a wide-variety of sailing yachts,powerboats and luxury yachtsKeppelite I April 2010

Sustaining Growth 33In recent years, more boatingfacilities have been built inSingapore at Sentosa and here atKeppel Bay. Indeed, Marina atKeppel Bay is world-class.Mrs Lim Hwee HuaMinister in Prime Minister’s Office andSecond Minister for Transport and FinanceThronged by boat and sailingaficionados, Boat Asia 2010,a premier luxury boat andwaterfront lifestyle show,saw the unveiling of severalnautical masterpiecesranging from sailing yachts,powerboats to luxury yachts.Held at Marina at Keppel Bayfor the third time, the fourdayboat and lifestyle showwas declared opened byMrs Lim Hwee Hua, Ministerin Prime Minister’s Officeand Second Minister forTransport and Finance on15 April 2010.Mr Herman Ho, MD of TMXShow Productions, thecompany which brought inBoat Asia, shared, “Coupledwith brisk sales of luxuryproperties in waterfrontprecincts such as Keppel Bay,we can safely say that theboating lifestyle is here tostay.”Besides the opportunity toget up close with the latestand sleekest products of theboat industry, visitors weretreated to a slice of historywith two centenarians,Cariad and Vega, on display.Cariad (beloved in Welsh) isundergoing the last of herrefurbishment works beforereceiving a new lease of lifeas a charter yacht sailing theSouth China Sea.Vega spent nearly a hundredyears carrying freight inthe North Sea and up tothe Arctic, but has sinceredirected her efforts forcharitable work. Goingwhere many modern boatscannot, Vega brings medicaland educational supplies toisolated islands.Visitors of the eventalso enjoyed exhibitionsshowcasing lifestyle brandssuch as Audi, Davidof, Leica,Metakaos, Franck Muller,Nespresso, Royal Selangorand Sony.Mr Trevor Fong, GM ofMarina at Keppel Bay, said,“The Marina with itspremium berths, facilitiesand services, has againsuccessfully hosted Boat Asia2010, one of the mosthighly-anticipated luxurylifestyle events. Such eventswill further establish KeppelBay as a prime waterfrontprecinct.” keppeliteExportingSingapore’surban solutionsAs the leader of the Singaporeconsortia for two landmarkbilateral co-operation projectsbetween Singapore andChina - the Suzhou IndustrialPark and the Sino-SingaporeTianjin Eco-City – KeppelCorporation was invited toshare its extensive experiencein bringing Singapore’s urbansolutions to other countriesat the inaugural Leadersin Urban GovernanceProgramme (LUGP) organisedby the Centre for LiveableCities (CLC). The CLC is apolicy-oriented centre jointlyestablished by the Ministry ofNational Development (MND)and the Ministry of theEnvironment and WaterResources (MEWR).The LUGP aims to impart theknowledge and expertise ofagencies and companiesresponsible for Singapore’surban transformation to ayounger generation, as wellas to prepare future leadersfor urban challenges as partof a continuing drive todevelop Singapore into amore sustainable, distinctiveglobal city. Participants in theinaugural run of LUGPcomprised Directors andDeputy Directors fromMND, MEWR and othergovernment agencies.At a panel session on 12 April2010, Mr Khor Poh Hwa,Advisor (Township andInfrastructure Development)of Keppel Corporation,shared the opportunities andchallenges faced by theCompany in exportingSingapore’s urban experienceand how public agenciescould work with the industryto help unlock and promoteSingapore’s expertise.The participants foundthe sharing useful inunderstanding howSingapore could leverageon opportunities inexporting its expertise, thechallenges faced and theneed to strategicallyposition governmentagencies for such challengesand capitalise on theircompetitive advantage.The other panel membersat the same session wereMr Khoo Teng Chye,Chief Executive of thePublic Utilities Board,Dr John Keung, CEO of theBuilding and ConstructionAuthority of Singapore,and Mr Lee Chuan Seng,Chairman of Beca Asiaand President of theSingapore Green BuildingCouncil. keppeliteKeppelite I April 2010

34 Empowering Lives LivesEmerging strongerWith an increasingly diverseworkforce and geographicalspread, Keppel Landcontinues to create platformsto encourage employeeinteraction and knowledgeexchange.The Annual InternationalConference (AIC), held from5 to 9 April at the GrandCopthorne Waterfront Hotel,was one such platformorganised for overseaspostees as well as localemployees to convene inSingapore.The five-day programmeincluded workshops formanagement training anda career review sessioninvolving senior managementof the various markets.Apart from insights into thedifferent markets andstrategies, the Conferencealso facilitated alignment ofthe overseas units to thegroup’s strategic directions.Keppel Land has weatheredone of the worst recessionsto emerge stronger. Inresponse to the economiccrisis, the group hadreviewed its operating as wellas project costs to staycompetitive and ready itselfto seize opportunities in theupturn.With a people strength of3,300 in nine countries,With a growing presence across Asia, platforms such as AIC help Keppel Land form tighter networksLively discussion on solutions at the AIC enabled all to learn from and build on sharedexperienceKeppel Land is fast growinginternationally. Group CEOof Keppel Land, Mr KevinWong shared in his addressat AIC that market conditionscan change and turn aroundquickly and to drive furthergrowth, Keppel Land needsgood people which includeslocal staff and talents.Ms Luo Sha Sherry,Senior Investment Executiveposted at Chengdu, shared,“AIC is an excellentopportunity for informationexchange and allows usto meet counterpartsstationed overseas whomyou may have worked withperhaps over email andteleconferences but nevermet. It also helps tie usoverseas postees to KeppelLand and reminds us that weare not an isolated unit.”GOING FOR WOWThe WOW (Work of aWinner) Awards, one ofthe highlights at AIC, is ashowcase of team work andgood project management.Keppelite I April 2010

Empowering Lives 35This year, 12 teams whichwere shortlisted from22 entries, presented theircase studies on innovativeproblem-solving methodsand people managementskills.Teams from five countriesshared their experiences witha panel of judges, comprisingsenior representatives fromacross the group, anda voting audience. Theywere assessed on projectpresentation, adaptability,innovation and value add tothe issue at hand.This year, the Chengdu teamtook the Platinum Award fortheir presentation on howthey dealt with the 2008Sichuan earthquake. Theteam shared on how theywere able to get operationsup and running in just fivedays after the 8.0 Richterscale quake and strongaftershocks, despite enforcedevacuation from main officepremises.Team member and City HeadMr Peter Lee shared that“the presentation allowedthe team and I to look backat lessons learned and sharewith fellow colleagues sothat they can adapt thesolutions for their own needsin the future.”Long Service awards werepresented to seven faithfulemployees. Two wereapplauded for 10 years ofservice while five inspiredwith their 20 years ofcontribution. Leading byexample, Group CEO,Mr Kevin Wong, receivedthe most applause when hewas called onstage to receivehis 20-year service award.Celebrating some ofSingapore’s well loved icons,teams came dressed as SIAstewardesses and pilots,Samsui women and coolies,and drawing inspiration fromwithin the Group, the K-REITAsia team gamely donnedthe familiar Keppel boilersuits.Lim Wenjie, Chairperson ofthis year’s Keppel LandDinner and DanceOrganising Committee said“The committee chose thetheme of InspirationalPersonality with the KeppelCan Do! spirit in mind. Whatbetter way to remindourselves that anything ispossible than by emulatingpeople who have inspiredus.” keppeliteMr Kevin Wong, Group CEO of Keppel Land (right) receiving an award recognising his 20years of service from Director, Mr Edward LeeINSPIRING CHARACTERThe AIC week ended on ahigh note with Keppel Land’sannual Dinner and Dance,aptly themed ‘InspirationalPersonality’.K-Reit Asia’s team draws inspiration from colleagues in the yardKeppelite I April 2010

36 Empowering LivesRacing to PanamaPowered by favourable winds, the Keppel-sponsored Uniquely Singapore is enrouteto Panama.After a restful stopover inSan Francisco, California, theClipper Race have returnedto the serious business ofsailing around the globe.They will travel some3,329 miles, or over5,357 km, to Panama. Thecountry’s tropical climate willbe a welcome change forthe crews, who had bravedicy temperatures andblistering winds to get toCalifornia.Californian Governor ArnoldSchwarzenegger was at thesend off ceremony to givethe Clipper fleet hisblessings. He said, “Thisevent brings togetherenthusiastic sailors for a greatcompetition. Everyone herehas trained hard to be readyfor this once-in-a-lifetimeopportunity and you can beproud of what you haveaccomplished so far. To allthe participants, I wish youthe best of luck and happysailing.”When the starting hornAfter a restful stay in San Francisco, Uniquely Singapore heads out to sunshiny PanamaKeppelite I April 2010

Empowering Lives 37sounded, home teamCalifornia pulled ahead of theothers. But it was not longbefore Hull & Humber movedinto the lead with Team Finlandand Uniquely Singaporefollowing closely behind.So far, the weatherconditions have been morethan ideal. Consistent windspushed the boats smoothlypast the iconic GoldenGate Bridge and out ofSan Francisco Bay.The first boats are expectedContinues on page 38...(From clockwise) The Clipper Race has been a wondrous and exhilarating experience for the crew of Uniquely Singapore; Supporters gave a warm round of applause to the crew of the little redboat which had braved icy temperatures and blistering winds to get to San Francisco; A sight to behold: The Clipper Race fleet glides past the iconic Golden Gate BridgeKeppelite I April 2010

38 Empowering Lives...continued from page 37.to reach Panama around11 May 2010, after whichthey will commence Race 9,a 591-mile sprint to Jamaica.RARING TO GOUniquely Singaporesustained quite a few hardknocks during its run fromQingdao to California. Hugewaves and strong windsripped off its companionwayroof, bent its steering wheeland washed some of its crewmembers overboard.Roughed up but undeterred,with the completion of repairworks on the boat, theresilient crew was eager toget on with the next leg ofthe race.Reflecting on the racingconditions, UniquelySingapore skipper Jim Dobieshared that the California-Panama leg could get tacticalshould the winds turn lightwhen the boats movedfurther south.Joining Uniquely Singaporeat San Francisco was 52-yearoldSingaporean bankerStephen Lam. New to sailing,he shared, “I am quiteexcited about the race. I havebeen looking forward to thissince my training in the UKlast August. It has been along wait!”He added, “I have been toldthe race down to Panama isless grueling but stillchallenging. Hopefully, I canembrace and add to theCan Do! spirit of the team.”Back in home portAfter a two-weekadventure onboardUniquely Singapore,Keppel Ambassador BartKregersman is settlingback into life in Belgium.Reminiscing about hissailing trip from Qingdaoto California, the researchengineer at KeppelSeghers Belgium, said, “Ienvy the guys who are onthe race towards Panama!I’m thankful to Keppel forthis great opportunity. Thememories of the journeykeep coming back to me.It has definitely been a lifechangingexperience.”Bart shares details abouthis experiences:What were the racingconditions like?I knew that the Qingdao-California leg wouldbe cold, wet and windy.It surpassed theseexpectations and was a lottougher than I thought itwould be. Despite, orperhaps because of this,it was a wondrousexperience.What was anunforgettable momenton your race?At one point we wereknocked down by a largewave. As a result of theimpact, we lost the doorto the main cabin andAll smiles, Keppel Ambassador Bart Kregersman successfully completes his two-weekadventure onboard Uniquely Singaporethe boom, a long polecontrolling the angle andshape of the sail, became outof control. Fortunately, thecrew was able to remaincalm and manage thesituation appropriately.The knock also drasticallychanged our fates in therace. Up till then, we were insecond position and werehoping for a podium place.After the knockdown,despite our best effortsJamaica Lightning Bolt pulledwell ahead.What are the rewards ofbeing part of the Clipper09-10 race?I sailed across the biggestocean in the world!Moreover, I got to meet greatpeople, which have becomelike family.Any plans to sail in thenear future?My dad wanted to sail withme when I was a teenager,but I was not interested insailing then so he bought amotor boat instead. Whenhe found out I was onClipper 09-10, he suggestedselling the motor boat andgetting a sailboat, which hedid a couple of weeks beforeI flew out to Qingdao. So Iam lucky enough to be ableto sail whenever I like.keppeliteKeppelite I April 2010

Empowering Lives 39Keppelites AbroadEmbracing a new cultureWith experience in bothproperty management andworking in China, Tan LayGuan was an ideal candidateto take on the role as GM(Customer Focus) for KeppelLand International inShanghai. He has since beenre-designated to PropertyManagement Director.The avid traveller began hisoverseas posting in April2008 and has settled incomfortably into his newhome in Shanghai. AlthoughLay Guan had priorexperience working in China,he found the extra supportfrom his new colleagues amuch welcomed help whenhe first arrived.His work scope includesproperty management ofKeppel Land’s residentialdevelopments Villa Riviera,One Park Avenue, Eight ParkAvenue and Springdale, aswell as attending to homeowners’ queries and feedback.Managing customerrelationships is often achallenge and even more soin a foreign country. LayGuan shared that during hisinitial few months, heapplied caution in the way hedealt with any situation.Unlike in Singapore, handlingissues in China is not asstraightforward as thereSoaking in the local culture, Lay Guan enjoys exploring sights of China including Huangshan (Yellow Mountain in Mandarin), a mountain rangein southern Anhui provinceare various stakeholdersinvolved, including localemployees, external serviceproviders and the authorities.Even so, the 46-year-old tookall these in his stride andmaintained a professionaland sincere demeanour inhis undertakings. Hehighlighted that relationshipmanagement with all partiesis a necessary skill to havein China.On top of gaining experienceand sharpening his peopleskills at work, Lay Guanenriches himself throughweekend trips to other citiesin China and soaking in thelocal festivities. Traditionalholidays such as the DragonBoat Festival and Mid AutumnFestival prove to be verycolourful affairs celebratedcountry-wide, as they havebeen declared public holidaysin recent years.Encouraging Keppelites toventure abroad, Lay Guanshared that having workingexperience overseas is notonly beneficial to one’s careerdevelopment, but also leadsto personal enrichment.Exposure to a new cultureand social norms andlearning how to adapt andembrace change are pricelessskills to be had in an age ofglobalisation.Deriving great satisfactionwhen he is able to resolveissues and challenges,without compromising thecompany’s position, LayGuan looks forward tomanaging projects in othercities after localisation. keppeliteKeppelite I April 2010

40 Nurturing Communities CommunitiesMaking the switch for EarthCamaraderie under candlelight at Acacia Lodge, Juniper Lodge and Lantana LodgeLeveraging its collectivestrength and extensivenetwork, the Keppel Groupof companies rallied effortsin Singapore and overseas forEarth Hour on 27 March2010.For one hour from 8.30pmto 9.30pm that Saturdayevening, it was lights outat various Keppelproperties and facilities,including seven yardsin Singapore, Marinaat Keppel Bay and the UluPandan NEWater Plant.Earth Hour started in 2007in Sydney, Australia, when2.2 million homes andbusinesses turned theirlights off for one hour in aunited front for climatechange and since, theinitiative has become a globalsustainability movement.A record of 128 countriesand territories joined theglobal display of action forEarth Hour 2010, making itthe world’s largest everglobal climate changeinitiative.In his note to Keppelites onthe Group’s participation inEarth Hour, Mr ChooChiau Beng, CEO of KeppelCorporation, said, “With theheightened sense of thethreat of climate change, allof us are challenged to handover to the next generationa more developed, yetgreener and cleaner world.“The Group’s three coredivisions have key roles incrystallising our vision ofbecoming a provider ofchoice for solutions to makethe world a better place.“Group capabilities andcohesiveness have beenKeppel’s defining traits andby rallying together in thisgreen cause, we can make adifference. More importantly,we will do so withoutcompromising on safety andsecurity.”LIGHTS OUT ACROSSCITIESAcross Asia, 32 of KeppelLand’s developments hadnon-essential lights andappliances off, achievingestimated energy savingsequivalent to what is neededto power a five-room HDBflat for 7.7 months.At Marina at Keppel Bay,couples and familiesenjoyed time together undercandlelight. Even along theKeppelite I April 2010

Nurturing Communities 41span of Keppel Bay Bridge,lights were dimmed. Over atCaribbean at Keppel Bay,enthusiastic residents withgreen fingers marked theHour with a night gardeningevent.Meanwhile, at Keppel Land’stownship in Indonesia,Jakarta Garden City,residents came together fora lively street party when thelights went off.Keppel Land’s efforts forEarth Hour began evenbefore the official ‘lightsout’.A week before theevent, tenants at itscommercial properties inSingapore’s financial andbusiness district helped saveenergy by turning off alllights during lunch hours.At the same time, KeppelLand’s employees wereencouraged to observe EarthHour at home with thedistribution of special candlesmade by ChaCha Cottage,an organisation whichsupports women in need.Staff also posted plans onparticipation in Earth Hour onthe company’s intranet portal.HR Officer Christina Hopledged to “enjoy one hourof unrushed time with familyand experience a simplemoment of life, without thedistraction of technology”.Tan Pua Chi, Senior Managerof Treasury & CapitalManagement at K-REIT Asia,shared,”I will switch off alllights to create awarenessand encourage my boys toconserve what Mother Naturegives us. We will take theopportunity to light upcandles and have a niceyoga session together.”PLANTS PITCH IN TOOAt Keppel IntegratedEngineering, ‘lights-out’measures were alsoimplemented at both theTuas and Senoko Waste-to-Energy Plants as well as theUlu Pandan NEWater Plant.Concurrently, threewarehousing facilities in Tuasunder Keppel Logistics alsohad their lights out.KEPPEL YARDS INNEW LIGHTDuring Earth Hour, sevenKeppel yards in Singaporepowered down non-essentiallights. Joining their effortswere Keppel Offshore &Marine Technology Centreand workers staying atAcacia Lodge, Juniper Lodgeand Lantana Lodge.In the period leading up toEarth Hour, people atKeppel Offshore & Marine(Keppel O&M) both inSingapore and overseasreceived emails sharing onenergy-saving tips andinitiatives. Subcontractorsand vendors were alsoinvited to participate in thisjoint effort.Wayne Siek, Senior HSEOfficer at Keppel FELS, whowas part of the team thatorganised Keppel O&Minitiatives for Earth Hour2010, said, “Participating inEarth Hour has made merealise just how fragile ourearth is and the importanceof protecting and conservingits resources.“We believe that everyKeppel employee can makea difference, not just duringthis hour, but in sustainedefforts, to make this planeta better place for futuregenerations.” keppeliteCorrectionIn the March issue ofKeppelite on page 16, it wasmentioned that Mr Lim SiongGuan, Chairman of EconomicDevelopment Board (EDB)and his colleagues called onKeppel Offshore & MarineTechnology Centre inFebruary 2010. It should havebeen Mr Leo Yip, Chairmanof EDB. Keppelite apologisesfor this error.Keppel Land’s employees and their families observed Earth Hour with candles from ChaCha Cottage, an organisation which supports womenin needKeppelite I April 2010

42 Nurturing CommunitiesVoice of BrazilQueen of bossa nova, Bebel Gilberto, mesmerised audiences at theKeppel Offshore & Marine-sponsored concert at the Esplanade.Deepening connections at the pre-concert reception were Mr Tong Chong Heong (left), CEO of Keppel O&M and Mr Louis Chow (right), GM (Commercial – Conversion) of Keppel Shipyard, withguests Mr Darren Ahrens, Turret and Mooring System Delivery Manager, BP, and his spouseAfter her two sell-outperformances in Singapore in2005 and 2007, BebelGilberto was back for anencore with songs from hernew album, ‘All In One’,performed on 19 April 2010at the Esplanade ConcertHall. Presenting the show forthe third time was KeppelOffshore & Marine (KeppelO&M).The New York-born,Grammy Award-nominatedsongbird is knownworldwide for embodyingthe heart and soul ofBrazilian music. Her signaturestyle fuses the relaxingBrazilian beat withsophisticated, subtleelectronica, all at oncefluid, romantic and full oflife.At the Esplanade concert,she performed old favouritesand new releases. Blendingclassic bossa nova, samba,pop and electronicaflourishes with her seductive,supple voice, she kept theaudience spellbound.Attended by some 70management representatives,clients and businessassociates, the eventallowed Keppel O&M todeepen customerrelationships and promotean appreciation andunderstanding of Brazilianarts and culture amongstlocal audiences.Keppel O&M’s collaborationwith Brazil began almostthree decades ago,through shiprepair andship conversion work forPetrobras. The win-winrelationship paved the wayfor more partnershipsand today, the companyhas demonstrated itscommitment to grow withthe Brazilian market.Coincidentally, the concertcame at the back of KeppelO&M’s announcement toset up a new yard in Brazil(see page 44) – KeppelSingmarine Brasil – to offera one-stop solution forcustomised vessels.With strong local presence,established networks and aconsistent track record,Keppel O&M is poised tocontinue supporting andgrowing with its valuedBrazilian stakeholders. keppeliteKeppelite I April 2010

Food for thoughtNurturing Communities 43volunteersKeppelConsumers are spoilt forchoice with the variety andabundance of food itemsavailable. However, withoutproper education andguidance, people, especiallychildren, are likely to developpoor eating habits.If left unchecked,unfavourable eatingpractices can lead toundernourishment, obesityand increased risks forillnesses such as heartdisease, high blood pressureor diabetes later in life.Given a budget and timelineto adhere to, the studentspaired up with the KeppelVolunteers to fulfill therequirements of the FoodGuide Pyramid groups,which comprises grains,vegetables, fruits, milk, oils,and meat and beans.On top of making betterfood choices, the APSNbeneficiaries wereencouraged to use theirarithmetic skills to ensuretheir purchases did notexceed the budget and theirchosen items were within therecommended daily caloricintake.Following the groceryshopping activity, thechildren excitedly prepared apicnic with their purchasesand generously shared theirbounty with fellowschoolmates and KeppelVolunteers alike. There wasa profusion of colours asfruits and vegetables werefavourite picks.“It was both an enjoyableand beneficial experience forthe children as the activityhas a fun, yet practicalaspect. The knowledgethey’ve learnt can be appliedto their daily choice of food,which goes a long way toensure that they develophealthy eating habits,”shared volunteer Agnes Wu,who is a Commercial Officerfrom Keppel Shipyard. keppeliteWith such concerns in mind,Keppel Volunteers set out toorganise an activity toaddress the educationalaspect of healthy foodselection for students ofChaoyang School. Theschool is a learning instituteunder the auspices of theAssociation for Persons withSpecial Needs (APSN),Keppel’s adopted charity.Gathering at the GiantHypermarket in VivoCity on10 April 2010, the childrenwere briefed on the objectiveof the grocery shoppingactivity and given worksheetsbefore setting out to explorethe hypermarket’s aisles withthe Keppel Volunteers.Spending a fruitful morning with Keppel Volunteers, APSN beneficiaries were guided to make healthy food choices and eat a balanced dietKeppelite I April 2010

44BackPageKeppel fortifies market leadershipin BrazilKeppel Offshore & Marine(Keppel O&M), through itswholly-owned Braziliansubsidiary, NavegantesMaritime Construction andServices, entered into anagreement with Brazil’sTWB Group to acquire theEstaleiro TWB shipyard inNavegantes, Santa Catarina.This acquisition is subject tothe fulfillment of conditionsby the TWB Group.Keppel Singmarine willoperate the 7.6 hectaresshipyard, which has a300-metre long waterfrontand is equipped with aslipway, pipe and hull shopsand an outfitting quay.Keppel O&M’s totalinvestment in the yard,including further capitalexpenditure to upgrade andmodernise the facility, will beabout US$50 million.Mr Chow Yew Yuen,President (the Americas) ofKeppel O&M, said, “Ourlatest acquisition reinforcesKeppel O&M’s Near Market,Near Customer strategy,and complements ourBrasFELS yard in Angra dosReis in offering a slew ofcomprehensive solutions forBrazil’s offshore oil and gassector.“Petrobras has announcedplans to charter some 147locally-built Offshore SupportKeppel Singmarine Brasil complements Keppel O&M’s existing BrasFELS yard in Angra dos Reis in offering a slew of comprehensive solutions forBrazil’s offshore oil and gas sectorVessels over the next fiveyears, with at least 70% ofthe work on each newbuildto be carried out within thecountry. Through this newfacility, we will bring ourspecialised shipbuildingexpertise to help satisfy thedemand for robust supportvessels at the doorstepsof Brazil’s offshore fielddevelopment market.”To be named KeppelSingmarine Brasil, the newyard will focus on theconstruction of offshoresupport vessels such asAnchor Handling Tug/Supplyvessels, platform supplyvessels, oil recovery supportvessels and harbour tugs,among others. It will alsobe equipped to undertakethe fabrication of offshoremodules, which will be anadded advantage for Keppelto support the execution ofmajor projects at theBrasFELS yard.The modernisationprogramme planned forKeppel Singmarine Brasilincludes upgrading theexisting slipway, as well asconstructing a new slipway,a wharf, heavy lift gantrycranes and pipe and hullshops fitted with modernmachinery and equipment.The new yard is expectedto be operational by thesecond half of 2010. At fullcapacity, it is estimated tobe able to complete anaverage of eight vessels ayear.“Keppel Singmarine Brasilis set to offer a one-stopsolution for customisedvessels, backed by ourproven proprietarytechnology and engineeringcapabilities. I am confidentthat we have a compellingproposition for ship ownersoperating in Brazil, whichwill poise us to capture newopportunities and meetBrazil’s high local contentrequirements,” Mr Chowadded. keppelitePrinted on recycled paperKeppelite I April 2010