Finpro's Maritime Business Day seminar event, February 10th 2016

1. Maritime Business Day
Current activities at
North German Shipyards
Dipl.-Phys. Jörg Polzer
Helsinki, 10 February 2016

2. Agenda
• Impact of global economy crisis on German
Shipbuilding Industry
The Past
• Lessons learned
• Global Challenges of today
• Market Outlook
The Present
• New approach to Makers List Entries
• Upcoming Projects
The Future

3. 0
2
4
6
8
10
12
14
16
18
20
0
5
10
15
20
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Orderbook New Orders Completions
EU 28 + Norway Commercial Shipbuilding Activities
1.000CGT
CGT - Compensated Gross Tonnes Source: CESA
Community of European Shipyards Association

4. New Orders Market Share
0
10
20
30
40
50
2005 2006 2007 2008 2009 2010 2011 2012 2013/3.Q.
Europe China Japan S. Korea
%ofCGT
Source: CESA
Community of European Shipyards Association

5. Reaction to global economy crisis shows largescale changes to both the
structure and also the players involved.
FSG → Siem Industries Inc.
Wadan Werft/Volkswerft Stralsund → Nordic Yards
Lloyd Werft → Genting
HDW → GNYG / Privinvest
German Shipyards today

6. Flensburg
Kiel
Wismar
Stralsund
Rostock
Bremerhaven
Hamburg
Papenburg
Lemwerder
Rendsburg
German Major Shipyards
Bremen
Wolgast
Berne

7. Meyer Werft Gruppe
Thyssen Krupp Marine
Systems
Lürssen Gruppe
Nordic Yards
German Naval Yards
Rönner Gruppe
Meyer Werft GmbH
(3.008)
Neptun Werft GmbH
(479)
TKMS Kiel
GmbH (2.307)
TKMS Hamburg GmbH
(411)
TKMS Emden GmbH
(267)
Fr. Lürssen Werft GmbH
(978)
Norderwerft Repair
GmbH (94)
Lürssen Kröger Werft
GmbH&CoKG (363)
Neue Jade Werft GmbH
(99)
Peene-Werft GmbH &
Co KG (259)
Nordic Yards
Warnemünde (1.400)
GNYG Kiel GmbH
(329)
Nobiskrug GmbH
(587)
Lindenau Werft GmbH
(29)
Bremerhavener Dock
GmbH (95)
Stahlbau Nord GmbH
(30)
Mützelfeldtwerft GmbH
& Co KG (49)
Meyer Turku
(1.450)
Volkswerft Stralsund
German Shipyard Groups
Nordic Yards Wismar
Source: CESA
Community of European Shipyards Association

8. Abeking & Rasmussen
AG (393)
Blohm & Voss Repair
GmbH (403)
Blohm & Voss Ship-
yards GmbH (659)
Cassens Werft GmbH
(105)
Elsflether Werft AG (98)
Fr. Fassmer Werft
GmbH & Co KG (421)
Ferus Smit
Leer GmbH (43)
Flensburger Schiffbau
Gesellschaft mbH & Co KG
(780)
Husumer Dock u. Repair
GmbH & Co KG (27)
Hitzler Werft GmbH (50)
Pella Sietas GmbH
(100)
MAN Diesel & Turbo SE
PrimeServ (285)
German Dry Docks GmbH
(50)
Peters Werft
GmbH(102)
Schiffswerft Diedrich
GmbH & Co KG (22)
Unaffiliated German Shipyards
Lloyd Werft Bremer-
haven GmbH (362)
Source: CESA
Community of European Shipyards Association

9. German Shipyards Basics
Turnover of German shipyards in 2014 amounted to 6.4 bn Euro
16 New Orders on Vessels worth 4.3 bn Euro
Orderbook covers 41 vessels worth 10.8 bn Euro
18,270 persons employed directly by the yards in 2015, 91% of these at
the ten largest shipbuilders spread over 20 locations in Northern
Germany
There are currently around 130 shipyards involved in all types of activities
from cruise ships to submarines or repair and retrofitting (60 ocean
& 50 inland)

10. 2015 German Orderbook by Ship Types
41 Ships
10.8 bn EUR
23
11
2
2
2 1 Cruise Ferries
Mega Yachts
Ferries
RoRo Cargo
Offshore Platforms
Offshore Transport
Vessels
Source: CESA
Community of European Shipyards Association

11. Specialization & Leading-Edge technologies
Concentration on Cruise vessels, Megayachts and Special Task & Operation
vessels shows positive effect
Ship yards produce mainly special vessels which are tailor-made (“batch size 1”)
German shipyards have evolved into successful integrators of complex systems
Germany shipyards have increased productivity and efficiency
Key to Success

12. Driving the Changes
New development strategy recently approved by the national government
National Master Plan for Marine Technology (NMMT)
Significant increase of the volume of German shipbuilding raise Germany’s
worldwide visibility in the marine and on-board equipment industry
Maritime Cluster Northern Germany with more than 250 members from all
sectors

13. Technology Driver
Fuel Price Image
Regulation
Energy
Policy

14. Fuel Price
Hydrodynamic 3D Modelling Ship Hull
Propulsion Unit
Energy Consumers (HVAC, Illumination, etc)
Regulation
Nox, SOx, CO2 Emmissions
Ballast Water Management
Information & Documentation
Safety on board
Technology Driver

15. Yard
Number
of
Projects
Support
(1.000
EUR)
R&D Areas
FSG Flensburg 5 1.403
1. Analyse dynamic positioning of
vessels during the early stage of the
design phase.
2. Integrating 3D-based process
chains for the design phase of
vessels.
3. Productivity management during
production processes
4. Efficient processing of planning
data to optimize prototypes.
5. Development, evaluation and
assessment of technical security
using methanol to operate RoRo
passenger ships.
Research & Development support

16. Yard
Number
of
Projects
Support
(1.000
EUR)
R&D Areas
Fr. Lürssen Bremen 2 536
1. Productivity management
2. Interior expansion of mega-
yachts.
TKMS Hamburg
2 517
1. Development of 3D-typoloical
coordination of the production
with the aim to optimize the
design of complex vessels
2. Modelling hybrid propulsion by
taking account of
hydrodynamic interaction.
3. Lithium Ion Batteries
Research & Development support

17. Yard
Number
of
Projects
Support
(1.000
EUR)
R&D Areas
Meyer Werft
Papenburg
7 1.656
1. Development of a security
concept for vessels for
navigation purposes.
2. Dynamic positioning of
vessels
3. Productivity management for
clocked production of
unicums
4. Optimizing passenger ships
in swell.
Research & Development support

18. Yard
Number
of
Projects
Support
(1.000
EUR)
R&D Areas
Meyer Werft
Papenburg
(continued)
7 1.656
5. Navigation system for
security, logistics and
measurement purposes.
6. Production planning of
complex unicums in the
construction of passenger
ships.
7. Development, evaluation and
assessment of technical
security
Research & Development support

19. Potential for new Shipbuilding Contracts
Offshore Oil & Gas
Exploration
Construction
Service Vessels
Production Vessels
Seismic Vessels
Drilling Vessels
Multipurpose Constructions
Heavy Lift Constructions
Plattform Supply Vessels
Anchor Handling Vessels
Accommodation Vessels
FSO
FPSO
FLNG
Short Term Mid Term
Source: KfW IPEX 2015

20. Potential for new Shipbuilding Contracts
Shipping
Gas Tankers
Tankers Wet
Container Vessels
LNG
LPG/LEG
VLGC
Crude Oil
Product Tankers
Chemical Tankers
< 8.000
> 8.000
Multipurpose Heavylift
Short Term Mid Term
Source: KfW IPEX 2015

21. Potential for new Shipbuilding Contracts
Passenger Vessels
Cruises
Ferries
Contemporary
Luxury/Expedition
River Cruises
RoPax / Pax
Fast Ferries
Short Term Mid Term
Source: KfW IPEX 2015

23. Subcontractor System Integrator Investor
Korea
Japan
USA
Finland
Norway
400
German
Subcont
ractors
Shipyards
Germany
4 x Korea
20 x China
2 x Singapore
and others worldwide
Shipowner global
Europe
Japan
Brazil
Mexico
Nigeria
Export I
0.2 – 2.0 Mio USD
Short Term 1-2 years
Export II
30 – 1.000 Mio USD
Long Term 12 years
Equipment Based Finance

24. Equipment Based Finance

25. Potential/Example Master Makers List
Machinery

26. IMO Yard
Shipname
Orderer
Hull # Shiptype
Delivery
Date
9735232 Ferus Smit Symphony Ventures 422
Multi Purpose
Freight
2017/09
9721657 Ferus Smit Symphony Sea 419
Multi Purpose
Freight 2016/05
9735220 Ferus Smit Symphony Spirit 421
Multi Purpose
Freight 2017/02
9721669 Ferus Smit Symphony Sun 420
Multi Purpose
Freight
2016/08
Current Activities I

27. IMO Yard
Shipname
Orderer
Hull # Shiptype
Delivery
Date
9733117
Meyer
Papenburg
World Dream S712 Cruise Vessel 2017/10
9733466
FSG
Flensburg
Siem Helix1 766
Well
Stimulation
Vessel
2017/08
9733454
FSG
Flensburg
Siem Helix2 765
Well
Stimulation
Vessel
2017/03
9734252
Lürssen Werft
Bremen
Sasha 13698 Luxury Yacht 2017/11
Current Activities II

28. IMO Yard
Shipname
Orderer
Hull # Shiptype
Delivery
Date
9751511
Meyer
Papenburg
Norwegian Bliss III S708 Cruise Vessel 2019/10
9751509
Meyer
Papenburg
Norwegian Bliss II S707 Cruise Vessel 2018/05
9703796
Meyer
Papenburg
Norwegian Bliss S694 Cruise Vessel 2017/05
GNYG
Nobiskrug
Rendsburg
DamTysk
Vattenfall
Accommodation
Plattform
2016/07
Current Activities III

29. IMO Yard
Shipname
Orderer
Hull # Shiptype
Delivery
Date
1012531
Lürssen Werft
Rendsburg
Mistral 13688 Luxury Yacht 2016/05
9661792
Lürssen Werft
Bremen
Omar 13690 Luxury Yacht 2016/06
9783124
Neptun Werft
Rostock
Anthony Veder 575 LNG Tanker 2017/10
1012763
Abeking &
Rasmussen
Unknown Owner 6499 Luxury Yacht 2016/07
Current Activities IV

30. IMO Yard
Shipname
Orderer
Hull # Shiptype
Delivery
Date
9751511
Meyer
Papenburg
Norwegian Bliss III S708 Cruise Vessel 2019/10
9751509
Meyer
Papenburg
Norwegian Bliss II S707 Cruise Vessel 2018/05
9783124
Neptun Werft
Rostock
Anthony Veder 575 LNG Tanker 2017/10
GNYG
Nobiskrug
Rendsburg
DamTysk
Vattenfall
Accommodation
Plattform
2016/07
Current Activities V

31. Global Challenges
Distortion of market rules by increasing protectionism measures
U.S.A Jones Act on Coastal Shipping
South Korea Financing Aid
China Shipyard White List
Political commitment pro European Shipbuilding
industry required!

32. German Naval Shipbuilding
Frigate MKS 180
- 4 FoC Vessels worth 4.0 bn EURO
- Procurement via European open competitive biding process
- Contract award expected 2017
RAN SEA 1000 Future SubmarineProgramme
- 6 + 6 Options AIP Submarines for Collins Class replacement
-15.0 -20.0 bn EURO
- Competition with Japan and France
- Contract Award 2016/2017

33. Thank You!
Please contact us for any information
www.jpsc.global