DKG IM Final

STRICTLY PRIVATE & CONFIDENTIAL

PROJECT EMISSION SAVER

CONFIDENTIAL INFORMATION MEMORANDUM

NOVEMBER, 2006

Recipient: Wilhelm WilhelmsenIM #: 2,664

Confidential Information Memorandum

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Copenhagen November, 2006

Disclaimer

Handelsbanken Capital Markets (“Handelsbanken”) has been retained by DK Group NA NV, (“DK Group” or the

“Company”) to act as its exclusive financial adviser in connection with a potential private offering of securities. This

Confidential Information Memorandum (the “Memorandum”) has been prepared for use by a limited number of

prospective investors in considering an investment in the Company (the “Transaction”). The sole purpose of this

Memorandum is to assist the recipient in deciding whether to invest in the Company and each recipient acknowledges

that this Memorandum will be used solely for such purpose.

This Memorandum is being delivered subject to the terms, and the prior execution, of a Confidentiality Agreement. It

may be used only for the purposes set forth in the Confidentiality Agreement and may not be distributed to any other

person at any time except strictly in accordance with the terms of such Confidentiality Agreement.

This Memorandum does not purport to be all-inclusive or to contain all the information that a prospective investor may

desire in deciding whether or not to invest in the Company. Each prospective investor should conduct its own

investigation of the Company and its prospects to determine the merits and risks of the investment. The contents of this

document have been prepared from information provided by the Company and have not been independently verified by

Handelsbanken. The Company and Handelsbanken expressly disclaim any and all liability for the contents of, or

omissions from, this Memorandum and for any written or oral communication transmitted or made available to a

prospective investor. This Memorandum includes certain statements, estimates and projections with respect to the

Company’s business and its anticipated performance. No representations and warranties expressed or implied have

been or will be made by the Company or Handelsbanken and no responsibility is or will be accepted as to the accuracy

or completeness of such statements or estimates, and any liability is therefore hereby expressly disclaimed. In addition,

any projections and estimates included herein that are subject to economic and competitive uncertainties are beyond the

control of the Company. There can be no assurance that any projected results can be realised or that actual results will

not differ from those projected.

The information contained herein is subject to change, completion or amendment without notice. Handelsbanken and

the Company undertake no obligation to update this Memorandum or provide additional information.

It should be noted that the Company undertakes no obligation to accept offers or proposals and reserves the right to

change the terms of the Transaction and the procedure or terminate negotiations at any time prior to any investment in

the Company.

This Memorandum does not constitute a prospectus in accordance with the Danish Securities Trading etc. Consolidated

Act. Each prospective investor should consult their own tax advisor or other suitable advisor(s) as to legal, tax or other

matters, which the Transaction may involve for that investor’s part.

Distribution of the Information Memorandum in certain jurisdictions and to certain persons may be restricted by law or

regulation. Any recipient of this Memorandum is required to inform themselves about and observe such restrictions. If

you have not received this document directly from Handelsbanken or the Company, your receipt is unauthorised. In

such case, please return this document to Handelsbanken as soon as possible.

Notice in respect of the United Kingdom:

An investment in the Company cannot be promoted in the United Kingdom to the general public. The promotion in the

United Kingdom of securities of the Company and the issue or distribution of this document if made by a person who is

not an authorised person under the Financial Services and Markets Act 2000, as amended (“FSMA”) to carry on

designated investment business in the United Kingdom, is being made, or directed at, only to the following persons: (i)

persons who are “investment professionals” as defined in article 19(5) of the Financial Services and Markets Act 2000

(Financial Promotion) Order 2005, as amended (the “Financial Promotion Order”) and (ii) persons falling within any

of the categories of persons described in article 49(2)(a) to (d) of the Financial Promotion Order and any other person to

whom it may otherwise lawfully be made in accordance with the Financial Promotion Order (collectively referred to as

“relevant persons”). Securities in the Company will only be available to relevant persons and this communication must

not be acted upon by anyone who is not a relevant person.

Except as described above, any invitation or inducement to engage in investment activity (within the meaning of

Section 21 of FSMA) in connection with, or relating to, the sale or purchase of any Shares, may only be communicated

or caused to be communicated in circumstances in which Section 21(1) of the FSMA does not apply. It is the

responsibility of all persons under whose control or into whose possession this document comes to inform themselves

about and to ensure observance of all applicable provisions of FSMA in respect of anything done in relation to an

investment in the company in, from or otherwise involving, the United Kingdom.



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European Economic Area

Securities in the Company will not be offered or sold, to the public in any Member State of the European Economic

Area (including Members of the European Union plus Iceland, Liechtenstein and Norway) which has implemented

Directive 2003/71/EC (the “Prospectus Directive”) except:

(a) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or

regulated, whose corporate purpose is solely to invest in securities; or

(b) to any legal entity that has two or more of (i) an average of at least 250 employees during the last financial year;

(ii) a balance sheet with a total balance of more than EUR 43,000,000; and (iii) an annual net turnover of more

than EUR 50,000,000;

in the case of (ii) and (iii) as shown in its last annual or consolidated accounts; or

(c) in any other circumstances which do not require us to publish a prospectus pursuant to Article 3 of the Prospectus

Directive.

Forward-Looking Statements

Some of the statements contained in this Memorandum are “forward-looking statements” that involve risks,

uncertainties and assumptions with respect to DK Group, including some statements concerning the transactions

described in this Memorandum, future results, plans, goals and other events which have not yet occurred. You can find

many, but not all, of these statements by looking for words like “will,” “may,” “believes,” “expects,” “anticipates,”

“forecast,” “future,” “intends,” “plans” and “estimates” and for similar expressions.

Because forward-looking statements, including those which may impact the forecasting of the financial performance

involve risks and uncertainties, there are many factors that could cause DK Group’s actual financial results,

performance or achievements to differ materially from those expressed or implied in this Memorandum. These factors

include, but are not limited to the following:

! general economic and business conditions which may impact levels of investments by ship owners and the revenue

forecast for DK Group;

! conditions in the shipping industry, including charter rates, new build activity, pricing and environmental taxation;

! the international political and economic climate, the recent military action in the Middle East, other armed

conflicts, terrorist attacks, availability of air service, and other world events and negative publicity and their impact

on the demand for cruises;

! continued good relationships with ship owners, ship yards and other relevant industry participants; and

! continuing financial viability of DK Group’s ACS design to commercial vessels

Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing

obligations under applicable law or any relevant listing rules, DK Group and Handelsbanken expressly disclaims any

obligation to disseminate, after the date of this Memorandum, any updates or revisions to any such forward-looking

statements to reflect any change in expectations or events, conditions or circumstances on which any such statements

are based.

An investor will be required to make certain representations relating to their status which will determine the suitability

of the investor as a purchaser of securities in the Company, which will survive the completion of the issuance of any

securities in the Company.

Handelsbanken will act as the sole point of contact with prospective investors. The Company should not be

contacted. Any communications or inquiries relating to this Memorandum and any matters relating to the Transaction

should be directed to Handelsbanken, and should be referred to:

Handelsbanken Capital Markets

Amaliegade 3

P.O. Box 1032, DK-1007 Copenhagen

Denmark

Frederik Anesen Scheibel

Tel: + 45 33 41 85 76 Fax: + 45 33 41 82 08

e-mail: [email protected]



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Table of contents

1. Executive summary................................................................................................................................................... 5

1.1. Company overview.......................................................................................................................................... 5

1.2. Business strategy ............................................................................................................................................. 6

1.3. Technology and intellectual property .............................................................................................................. 6

1.4. Illustrations of selected relevant vessel classes to DK Group’s ACS.............................................................. 6

1.5. Well-defined and sizable target market suffering under high oil prices .......................................................... 7

1.6. Strong investment proposition to ship-owners ................................................................................................ 7

1.7. Experienced, execution oriented CEO and strong development team............................................................. 7

1.8. Financial forecast, 2007-2015 ......................................................................................................................... 8

2. Proposed transaction ................................................................................................................................................. 9

3. History and legal structure ...................................................................................................................................... 10

3.1. DK Group legal corporate structure............................................................................................................... 10

4. Market opportunity and shipbuilding industry dynamics........................................................................................ 11

4.1. Current addressable market ........................................................................................................................... 11

4.2. Review of shipbuilding dynamics.................................................................................................................. 12

4.3. Key vessel design selection criteria ............................................................................................................... 14

5. Introduction to DK Group’s Air Cavity System (”ACS”)....................................................................................... 18

5.1. Application and commercial advantages ....................................................................................................... 18

6. Strategy, business model and positioning ............................................................................................................... 20

6.1. Strategy.......................................................................................................................................................... 20

6.2. Royalty based, high margin revenue model................................................................................................... 21

6.3. Key project mile stones to completing “basic designs”................................................................................. 21

6.4. Analyses of operating savings per vessel class.............................................................................................. 22

7. Competition and competing technologies ............................................................................................................... 26

7.1. History of ACS technology ........................................................................................................................... 26

8. Development pipeline and “time-to-market” .......................................................................................................... 27

9. Sales and marketing strategy................................................................................................................................... 30

10. IPR and patent strategy....................................................................................................................................... 32

10.1. Patent strategy - DK Group’s future patent portfolio................................................................................ 32

10.2. Legal protection / ship arrest within the maritime industry ...................................................................... 32

11. Corporate structure and governance ................................................................................................................... 33

11.1. Connected company advisors ................................................................................................................... 33

11.2. Organisational structure and executive team ............................................................................................ 33

11.3. Board structure.......................................................................................................................................... 34

11.4. Current shareholder structure.................................................................................................................... 34

12. Financials ........................................................................................................................................................... 35

12.1. Historical financials .................................................................................................................................. 35

12.2. Forecasting methodology and fundamental assumptions.......................................................................... 36

12.3. Conservative approach.............................................................................................................................. 36

12.4. Road to profitability – Phase I monthly cash flow budget to Dec-09 ....................................................... 36

12.5. Financial forecast – Annual assumptions to 2015..................................................................................... 38

Appendices ....................................................................................................................................................................... 46

Appendix A: Investment case studies per vessel class for a ship owner........................................................................... 47

Appendix B: Impact of DK Group’s ACS on global CO2 emission – environmentally and financially.......................... 51

Appendix C: Patent statement - Nederlandsch Octrooibureau ......................................................................................... 52

Appendix D: Classification statement - Germanischer Lloyd .......................................................................................... 57

Appendix E: Technical statement - Knud E. Hansen........................................................................................................ 59

Appendix F: Tank test scaling results – HSVA (Hamburgische Schiffbau-Versuchsanstalt) + Knud E. Hansen -

Aframax with ACS ........................................................................................................................................................... 62

Appendix G: Tank test scaling results – HSVA (Hamburgische Schiffbau-Versuchsanstalt) + Knud E. Hansen - VLCC

with ACS .......................................................................................................................................................................... 70


Confidential Information Memorandum Executive summary

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1. Executive summary

General information 1.1. Company overview

CEO: Christian Eyde Møller

Founder: Jørn Winkler

COO: Jørgen Clausen

Target

customers:

! Ship owners

! Shipyards

Product

focus:

Air cavity system for

ocean-going large

commercial vessels

Ownership Private

Website: www.dkgroup.dk

DK Group develops and markets fuel saving technologies and vessel designs to the

global shipping and shipbuilding industry. The Company’s unique and patent pending

technology, air cavity system (“ACS”), could potentially revolutionise the commercial

vessel building industry.

Tank test verified by HSVA support bunker ("ship fuel") savings of 5% to 15%

depending on vessel classes. These significant savings translate directly into financial

benefits and a cleaner environment from reduced CO2 emission and reduced emission

of other greenhouse gasses.

DK Group’s target customers include ship owners and shipyards. And the Company

has strong and long standing relationships with leading target customers. DK Group

has signed a contract with one of the largest ship brokers globally, Maersk Broker, for

it to act as global sales channel for DK Group.

DK Group expects to start generating revenue from ACS in calendar year 2007, with

estimates of reaching EUR 345m in revenue and EUR 328m in EBITDA by calendar

year 2013.

DK Group’s ACS from below DK Group’s air supply system for an Aframax

!"#$%&'%($$$$$$$)*+,-$./

!"#$0123.'($$4*5,-$.)

Source: DK Group Source: DK Group

DK Group’s ACS from the front Additional hull requirements from DK Group’s ACS

Additional Shell Plating

Additional Floor Plating

Area equivalent to basis vessel


DK Group’s ACS technology only requires limited changes to a vessels original design, through a slight reshaping of

the hull form, as illustrated by the above figures. The top left figure shows the Company’s ACS from below, while the

bottom left shows the system from the front. On the top right hand side is a schematic drawing of the air compressor

supply system for ACS and the bottom right figure illustrates the additional steel requirements to implement ACS on a

vessel.

Established, leading industry participants have provided vendor due diligence statements on DK Group, including

Germanischer Lloyd, Knud E. Hansen, Nederlandsch Octrooibureau, and HSVA. These are included in the appendix.

Compressor

Air deflection before propeller

Air cavity

Air cavityCompressor



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Vendor due diligence 1.2. Business strategy

! Germanischer Lloyd

! Knud E. Hansen

! Nederlandsch Octrooibureau

! HSVA

Benefits from DK Group’s ACS

! Bunker savings up to 15%

! Reduce CO2 and GHG emission

! Improve manoeuvring capabilities

! Shortened emergency stop distance

! Decrease overgrowing on hull

DK Group's objective is to be the world-leading supplier of fuel efficient and

environmentally friendly ACS designs to the marine industry. The Company will

continue to capitalise on its technology, design and time-to-market advantage to

develop and build the premier franchise in the navel design industry. To secure

successful execution of this strategy DK Group is leveraging its navel design

expertise, intellectual property and its experienced and execution oriented

management team.

The revenue model is royalty based and works on a one-percent fee per bought

ACS vessel. The relevant vessel unit price range is USD 30m-USD220m, which

forms the basis for a high-margin, highly scalable and asset light business model.

In the short-term, the Company focuses on completing basic designs for the

shipping industry's common vessel classes, Aframax tanker and 8,000 TEU

container ship.

Technology and IP 1.3. Technology and intellectual property

DK Group’s patent pending ACS technology provides a way of reducing the

resistance of a forward moving body in water.

The Company holds numerous trade secrets and intellectual property including 3

patent families pending, and no direct ACS competitors have been identified to

date.

As the ACS market evolves to incorporate all the large ocean-going vessel classes,

DK Group (“DKG”) is using its first-mover advantage to position its standard ACS

vessel designs as “designs of choice” for ship owners and shipyards.

1.4. Illustrations of selected relevant vessel classes to DK Group’s ACS

Pioneering the development of low

speed ACS

Numerous successful tank tests on own

vessel models

Patent families pending:

1. “Air cavity vessel with wedge-

shaped cavities, longitudinally

offset cavities and roll control

means”

2. “Air cavity vessel with air

deflector”

3. “Wave deflector in an air cavity

vessel”

Below figures illustrates four relevant vessel classes for DK Group’s ACS

technology. The resistance improvements are outlined below each vessel class,

indicating the significant potential of this technology.

Aframax tanker (115,000 dwt) 8,000 TEU Container

DKG’s test result: Resistance improvement: 15-20% DKG’s resistance improvement simulations: c. 7.5%

VLCC tanker LNG tanker

DKG’s test result: Resistance improvement: c. 15% DKG’s resistance improvement simulations: 7-9%

ACS area: 3,650 m

2

ACS volume: 4,850 m3

ACS area: 4,300 m2


ACS area

ACS area: 4,230 m2




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1.5. Well-defined and sizable target market suffering under high oil prices

The target market for DK Group’s current ACS technology includes the ocean-going commercial fleet of vessels with a

minimum length of 175m. More specifically, tankers, containerships, bulk carriers, general cargo ships and LNG/LPG

vessels that have an expected new build market size of approximately USD 60bn in 2006 from the building of

approximately 930 new vessels.

The new build activity is expected to increase in the coming years driven by technological development,

legislation/policy (CO2 emission, double hull requirements, etc.), and general benefits from having a “young fleet”.

Furthermore, the clear “follow-the-leader” tendency in shipping and particularly in container shipping is also likely to

impact positively new build activities.

DK Group’s ACS is likely to increase the speed of retirement of old vessels, as these will not be able to compete with

newly build more efficient and environmentally friendly ACS vessels.

The short-term focus segments being 115,000 dwt Aframax tanker and 8,000 TEU container ships have an estimated

2006 market size of USD 3.9bn and USD 1.7bn, respectively.

1.6. Strong investment proposition to ship-owners

The last year’s steep increase in oil prices, the industry wide focus on fuel savings technologies and increased

environmental awareness and punitive legislation are the fundamental demand drivers behind DK Group’s ACS

technology.

Tank tests have shown significant bunker savings potential, with individual runs in calm waters giving as high as 20%

resistance reduction. Nevertheless, in all financial models outlining the economical benefit from DK Group’s ACS, the

Company has conservatively assumed resistance reduction of 10% for tanker vessels and bulk carriers, 5% for

containerships and 7.5% for LNG vessels.

Zooming in on vessels daily operational expenses (“Opex”) is an illustrative way of highlighting the magnitude of the

abovementioned resistance reductions to ship owners. Bunker fuel (IFO 380) is the largest expense item in the

operational cost structure of a commercial vessel. For instance, bunker cost comprises 78% of other Opex for an

Aframax tanker and 90% of Opex for an 8,000 TEU container ship.

Applying the abovementioned and other conservative assumptions, an investment to apply DK Group’s ACS provides

vessel IRRs of 20% and 39% and a payback time of less than five and two years for an Aframax tanker and an 8,000

TEU container ship, respectively. Given a 20-30 year economical life of the vessels these returns are significant.

The environmental benefits from applying DK Group’s ACS are considerable. Approximately 40m tons of annual CO2

emission would be saved if the technology were applied to the current global fleet of target vessel classes. This would

equate to potential emission tax savings of around USD 800m at USD 20 per ton (Kyoto protocol).

Including the abovementioned estimated CO2 emission taxes the above IRRs would increase to 25% for the Aframax

tanker and to 48% for the 8,000 TEU containership.

1.7. Experienced, execution oriented CEO and strong development team

The three person management team has over 40 years of shipping related experience.

Christian Eyde Møller joins as CEO as part of the transaction. He comes from a position as International President at

TDC Solutions A/S and brings 20 years of executive experience from international technology, trading and service

companies. Prior to joining TDC he was Regional President, responsible for all Sprint operations within EMEA, Asia

Pacific and Australia. Christian brings relevant shipping expertise and execution experience from multiple cases where

he grew businesses and subsequently successfully exited the ventures. He has held senior executive positions with

Ebone (GTS), Equinix, and The East Asiatic Company (EAC). Currently, Christian is vice-chairman at HTCC. Inc.,

(listed on American Stock Exchange) and on the board ECTA (European Competitive Telecommunications

Association).

The Company’s founder, Jørn Winkler, has unique in-depth knowledge of the ACS technology and aerodynamics from

his years as airplane and helicopter pilot. DK Group will focus on development of leading ACS technologies and on

continued growth and strengthening of the Company’s patent families.

COO, Jørgen Clausen has over 30 years in global shipping at leading shipping companies including French CMA CGM

(JV with Norwegian Wilhelmsen), British Inchcape Shipping Services, Danish Chr. Jensen and Danish Lehmann

Junior.



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1.8. Financial forecast, 2007-2015

DK Group has applied a thorough and conservative approach to its financial projection model. The Company expects

to start generating revenues from its ACS vessel designs in 2007. As ship owners and shipyards migrate towards

applying DK Group’s ACS on more and more vessels, the forecast vessels on order are expected to grow to 551 in 2013

from 34 in 2009. Revenue growth is expected reach a steady-state in 2015 with a top line of EUR 390m.

DK Group’s limited fixed and variable cost structure business model and the high order unit price revenue model

support EBITDA margins in excess of 90% and free cash flow margins of above 80% in the long-term. Driven by this

limited cost structure the Company anticipates to reach cash flow breakeven by early 2009, following the expected

proof-of-concept at the end of 2008.

During 2007 and 2008 DK Group will have focus on developing vessel design packages (“basic designs”) to enable

penetration of the market. Extensive development activities are planned for 2010 onwards to develop basic designs for

all identified and future applicable vessel classes. The Company has cumulated projected capital expenditure in excess

of EUR 100m for the forecast period to 2015.

The projected cumulative cash flow generated by DK Group in the forecast period to 2015 adds up to approx. EUR

1,250m, highlighting the significant potential of the Company.

Table 1: Summary financial forecast, 2006-2015

Financial projections (EURm),

FYE to Dec2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Vessel on order (in units) - 2 2 34 95 242 422 551 549 519

Total revenues - 0.2 2.2 12.9 48.9 123.1 237.6 345.0 392.3 389.7

Gross profit - 0.2 2.2 12.5 47.8 118.7 229.5 333.1 378.3 375.4

EBITDA (0.5) (1.7) (0.6) 8.9 43.5 114.1 224.3 327.5 372.3 369.1

EBIT (0.5) (2.0) (1.0) 8.4 42.4 112.3 221.7 324.1 367.9 363.6

Total Capex - (4.7) (3.2) (1.7) (11.7) (13.2) (15.7) (17.2) (19.0) (20.9)

Free cash flow (0.5) (6.5) (4.1) 5.3 28.9 88.3 188.4 285.6 331.2 330.3

Cumulative cash flow (0.5) (7.0) (11.0) (5.7) 23.2 111.6 300.0 585.5 916.7 1,247.0

Key financial ratios

Sales growth 996% 476% 280% 152% 93% 45% 14% -1%

EBITDA margin % -26% 69% 89% 93% 94% 95% 95% 95%

EBIT Margin % -45% 65% 87% 91% 93% 94% 94% 93%

Free cash flow margin % -181% 41% 59% 72% 79% 83% 84% 85%

Source: DK Group



Proposed transaction

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2. Proposed transaction

Background

Steep increases in oil prices and an increasing global focus on technologies supporting a cleaner environment have let to

an increased appreciation of the value proposition DK Group’s air cavity system (“ACS”) technology/design for

building of ocean-going commercial vessel. DK Group is the only global developer of ACS technology for low speed

application and ideally positioned to capture and monetise on the significant market opportunity.

DK Group has retained Handelsbanken Capital Markets as exclusive financial advisor in a structured private placement

process, whereby a limited number of potential investors are invited to evaluate a potential investment in DK Group

(the “Transaction”). DK Group is a limited Netherlands Antilles Corporation, domiciled in Willemstad, Curacao,

Netherlands Antilles.

Summary investment terms of the Transaction

DK Group intends to raise an amount of EUR 15 million in the Transaction. The investment in the Company will be structured as a

fixed price subscription of new shares against contribution in cash to the Company.

The Company will be offering new Series C shares for subscription. The Series C shares offered for subscription will rank pari passu

with the Company’s current series A shares in relation to, inter alia, voting rights and rights to dividends from the Company.

Pre-issue number of

issued shares:

18,947,500 to shares comprised of

11,187,500 Series A shares, voting shares with a par value of EUR 0.001

7,760,000 Series B shares, non-voting shares with a par value of EUR 0.001

Pre-money share

price:

EUR 1.90 (Series A shares). Pre-money valuation: EUR 36,000,250

Post-money Series C

ownership

29.41% Post-money Series C voting control 41.37%

Pre-emptive rights: The Series A and Series C shareholders, respectively, have a preferential right to subscribe newly issued

Series A and Series C shares, respectively. The Series A and Series C shareholders shall not have a

secondary right to subscribe shares which are not subscribed by the other preferential right-holders. The

Series B shareholders do not hold any preferential rights.

Board Representation: The Series C shareholders will jointly be offered one common position on the Company’s board of directors.

Legal Documentation: A shareholders’ agreement will be concluded between the Series C and major Series A shareholders. This

agreement will include provisions which allow the Series C Shares a tag along right in connection with a

potential sale of a majority of Series A and Series C shares. There will also be a corresponding drag along

obligation in connection with a sale of a majority of the Series A and Series C shares in the Company.

The Series C shareholders will be obligated to vote with the majority of the Series A shareholders in relation

to certain specific resolutions (such as a merger or an IPO).

The shareholders’ agreement will provide for some veto rights of the board member appointed by the Series

C shareholders, to be agreed

Listing of the Company

The key shareholders and management team are positive to seek a public listing of DK Group within 3-5 years from

today. No listing of the Company’s shares is envisaged in the near future.

Use of proceeds

The net proceeds from the Transaction are envisaged to fund the DK Group to ensure that the Company is well

positioned for long-term success and bring the Company to cash flow profitability, through:

! Primary product focus is the development of “basic design” packages for the most relevant vessel segments to ACS

technology. These are initially a) 115,000 dtw Aframax tanker and b) 8,000 TEU container ship

! Penetration of new build markets for 115,000 dtw Aframax tanker and 8,000 TEU container ship

! Secondary, product focus is the development of additional “basic design” packages for VLCC tanker (very large

crude carrier) and 10,000 TEU container ship

! Penetration of new build markets for VLCC tanker and 10,000 TEU container ship

The executive management team strongly believes in DK Group’s market opportunity and will co-invest as part of the

Transaction on similar terms as new investors.



History and legal structure

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3. History and legal structure

Initially established in June 2000, to design and develop environmentally friendly, fuel efficiency technologies and

applications to high speed vessels in the global maritime market, DK Group began focusing on low speed application of

ACS for the ocean-going commercial fleet in 2003.

DK Group initially tested high speed container vessel and RoPax during 2000-2001. The results for RoPax were highly

successful and DK Group received positive media attention in Holland with articles in Speed at Sea and Algemeen

Dagblad. The development focus was subsequently changed to the much larger low speed market.

In 2002 and early 2003, DK Group tested ACS attached to existing bulk vessels; also know as “retrofit”. The testing

showed that retrofit designs had some commercial and technical issues and all efforts have since been concentrated on

developing ACS for new vessels with a particular focus on larger vessels. Oil prices have risen significantly since 2003

highlighting the substantial savings potential to ship owners and operators.

In 2004 to 2006 DK Group has undertaken intense studies on Aframax and VLCC showing significant fuel savings and

has now completed the basic development of its ACS technology. The Company’s go-to market strategy is preparing

and marketing two full vessel basic design packages with its ACS technology.

3.1. DK Group legal corporate structure

DK Group Netherlands BV, a Netherlands corporation, and DK Group NA NV, a Netherlands Antilles corporation were

established on 30 June 2000 as private companies with limited liability.

All patents and intellectual property rights (“IPR”) are 100% legally and economically owned by DK Group NA NV.

DK Group Netherlands BV licenses the rights to sublicense this IPR, and is the legal entity that will engage into IPR

contracts and agreements on behalf of the Company. Administration, research and development, sales and marketing,

and operations are headquartered out of the Rotterdam Office.

Figure 1: DK Group legal corporate structure

Source: DK Group

The DK Group corporate structure, shown in Figure 1 above, was developed with leading Dutch law firm, Nauta Dutilh,

Rotterdam, in 2001 to secure a mechanism for efficient corporate tax rate and investor taxation.

100%

DK Group NA NV

Netherlands Antilles Corporation

Kaya W.F.G. (Jombi), Mensing 36,

Willemstad, Curacao, Netherlands Antilles

DK Group Netherlands BV

Dutch Corporation

Weena 340, Rotterdam

The Netherlands



Market opportunity and shipbuilding industry dynamics

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4. Market opportunity and shipbuilding industry dynamics

The global new shipbuilding industry market is of significant size with a total value of USD 76.6bn in 2005 (Clarkson

Research Services, Q2-06).

The fundamental demand driver for the building of new commercial vessels is the growth in world trade and correlated

growth in global transportation services. Strong Chinese and Indian growth rates are specific drivers supporting global

growth.

Specific new vessel build drivers include technological development, legislation/policy, and benefits from having a

“young fleet”. Additionally, there is a clear “follow-the-leader” tendency in the shipping industry, and particularly

within the container vessel segment. Once a leading ship owner such as Maersk Line or KG build a new (larger) vessel,

other ship owners have traditionally follow suit.

New technologies and designs are significant drivers of the replacement market, as most of these are only applied to

new builds. As an example, a new engine is approximately 60% more efficient compared to a 25 years old engine.

MARPOL 73/78 (International Convention for the Prevention of Pollution from Ships) prescribes mandatory

application of double hull for all new building of tankers larger than 5,000 dwt. Additionally, tankers without a double

hull must be converted or taken out of service when they are 30 years old.

Regular wear and tear requires retirement of vessels prior to reaching 30 years of age – this is especially the case for

heavy handling bulkers that have shorter life than other vessels. Additionally, insurance premia increase as vessels

become older, supporting the economical feasibility to a ship operator of “modernising” his/her fleet. Having a young

fleet is also a strong argument for ship owners when selling their services, as this signals high performance efficiency

and a focus on being at the forefront of the environmental debate.

4.1. Current addressable market

DK Group’s focus is on the large commercial ocean-going vessels market including tankers, container ships, bulk

carriers, general cargo ships, and LNG/LPG vessels. The current target vessel designs are characterised by a few

operational characteristics:

! Daily fuel burn: 40 to 400 ton/day

! Cruise speed: 15-30 knots

! Min. length: 175m

The new shipbuilding value of the total tanker, container, bulk, general cargo and LNG/LPG vessels above 175 m was

USD 34.7bn in 2004 and USD 50.2bn in 2005, as outlined in Table 3, below.

The current global shipyard order book is full till 2008, however from 2009 onwards shipbuilding orders are still being

placed. Accordingly, the tables below show declining volume and values from 2008 onwards.

Table 2: Number of ships above 175 m in current global order books (delivery dates)

Ships due or delived 2003A 2004A 2005A 2006E 2007E 2008E 2009E 2010E 2011E Total

Tanker vessels 294 297 311 320 365 366 263 32 3 2,251

LNG vessels 15 20 19 30 33 52 37 2 0 208

LPG vessels 13 6 6 10 14 30 17 0 0 96

Containerships 124 129 179 241 268 264 120 17 1 1,343

Bulker carriers 161 240 282 333 257 213 116 21 0 1,623

Total 607 692 797 934 937 925 553 72 4 5,521

Source: Maersk Broker, Sep-06




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Table 3: Market value of ships above 175 m in current global order books

(1) (delivery dates)

USDm 2003A 2004A 2005A 2006E 2007E 2008E 2009E 2010E 2011E Total

Tanker vessels 11,446 14,301 18,991 18,677 22,764 23,690 19,178 2,966 325 132,339

LNG vessels 2,274 3,410 3,887 6,438 7,259 11,724 8,551 474 0 44,016

LPG vessels 769 435 545 914 1,312 2,881 1,673 0 0 8,528

Containerships 4,908 6,869 12,719 18,379 19,967 20,486 10,698 1,542 170 95,738

Bulker carriers 4,321 9,683 14,031 15,067 11,735 10,303 6,138 1,463 0 72,741

Total 23,718 34,698 50,173 59,475 63,036 69,084 46,238 6,445 495 353,362

Source: Maersk Broker, Sep-06; www.oanda.com, Sep-06

1) Figures are calculated by multiplying the vessel numbers from Table 2 with vessel prices provided by Maersk Broker

2) The market size is calculated assuming 2.5% inflation

3) Exchange rate: USD/EUR 0.785, as at 15-Aug-06

4.1.1. DK Group’s applicable market – New vessels and vessels already in the order book

Table 2, above indicates a current global yard capacity of approx. 940 vessels annually. This yard capacity is growing

in line with increasing demand for new ship building.

From DK Group’s perspective the evident market opportunity is new orders to the shipyards. Based on the ship

building dynamics described below, DK Group expects that 2008 is the first year where the Company can capture new-

build orders. Accordingly the identified approachable market is approx. 15 (940-925) vessels in 2008, 390 (940-550) in

2009 and around 870 and 900 in 2010 and 2011, respectively.

Additionally, vessels already in the order book are also a relevant target market for the Company. As long as there is

sufficient notice to change the architectural drawings to DK Group’s ACS application, a vessel design can be changed.

This period is around six months prior to steel cutting, which implies that DK Group can also target orders for

construction commencing in 2007.

4.2. Review of shipbuilding dynamics

Commercial vessel building process traditionally includes construction of vessels based on a “standard design”. The

relevant parties in the process include shipping companies, investors and shipyards. Vessel design testing is an integral

part of any vessel construction highlighting the importance of classification societies.

4.2.1. “Standard designs” for the most common vessel classes

Standard vessel classes have standard designs. These are highly uniform on a global basis, however, each shipyard

have their own version of a standard design e.g. for an Aframax tanker. These designs are standardised to such a degree

that ship owners and ship investors may only have limited influence on the design and may only have minor individual

items changed for their own purpose. Nevertheless, new and significantly improved standard design for a vessel class

has the potential to become the new standard for shipyards globally. Shipping companies and vessel investors.

Traditionally a shipping company/vessel investor will only place an order with a shipyard, after obtaining adequate

financing. The larger shipping companies typically place orders in series of 6-8 vessels at a time for larger vessels, in

order to benefit from economies of scale. The scale advantages are both in the pre-contract design phase, (such that the

shipping company only has to expense the design cost for one vessel type), and in the construction phase (to capture the

benefit from the shipyard becoming more efficient over time as it continues to construct similar vessels).

The process of introducing a new vessel design by a shipping company entails the production of a “tender design” and

thereafter a “basic design”. The “tender design” is a design package which has sufficient details to enable the shipyard

to bid for the tender sent to a number of shipyards. Once the tender has been agreed, the detailed full design package of

the vessel has to be completed. This full design is called the “basic design”, and is suitably detailed to enable

authorities and classification companies to approve the vessel. Based on the “basic design”, the shipyard produces its

own production procedure manual for the actual construction process.

4.2.2. Shipyards

The yards have two approaches to constructing vessels. The first is build-to-order of individual vessels or series vessels

based on a shipping company/investor’s individual design, whereas the second approach focuses on series production of

the shipyard’s “standard design”. Each individual yard promotes their standard design as a superior design and is

continuously looking for ways to improve this.

When a shipyard has constructed a vessel using a “basic design”, and prefer the characteristics of this design, the

shipyard may decide to market this as its new “standard design”, subject to approval by the design rights holders.




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4.2.3. Shipbrokers

Shipbrokers play a significant role in the shipbuilding industry as 70-80% of new build commercial vessels are sold

through a broker. These companies have relationships with both shipyards and shipping companies. Inherently, the

brokers then have expertise in sourcing contracts as well as experience in dealing with the complexities of negotiating

vessel contracts. Major shipbrokers include Maersk Broker, Clarksons, SSY, Howe Robinson, Braemar Seascope,

Gibsons, Galbraiths, Fearnleys, J.E.Hyde, of which Maersk Broker is among the largest with a extensive reach having

offices in Seoul, Tokyo, Beijing, Shanghai, Hong Kong, Singapore, Taipei, New York and Athens.

4.2.4. Construction process

The shipbuilding sector is unusual among industries in that one can estimate future revenue direction with a fair degree

of accuracy. Currently, ship yards are receiving orders 2-4 years into the future, and many yards have full order books

for the coming 2 years.

Typically, it takes 12-18 months to build a conventional vessel such as a bulk carrier, tanker or containership, and 28-32

months to construct an LNG vessel. Shipbuilding companies recognise revenue based on the proportion of input of raw

materials. There are five cut-off stages/milestones in the shipbuilding process: 1) contracting, 2) steel-cutting, 3) keel-

laying, 4) launch, and 5) delivery. In simple terms, from a typical vessel construction period of 12-18 months, it takes

3-9 months from contracting to steel-cutting (design period), 3 months from steel-cutting to keel-laying, 3 months from

keel-laying to launch and 3 months from launch to delivery. For highly standard vessel classes such as Aframax, the

building time is much faster, e.g. 11-13 months.

Figure 2: Shipbuilding process - standard vessel (12-18 months)

Source: Smith Barney, Sep-04; Maersk Brokers, Sep-06

4.2.5. The role of the classification society

The International Association of Classification Societies (“IACS”) is dedicated to safe ships and clean seas, with a

focus on compliance verification and research & development. In excess of 90% of the world's cargo carrying tonnage

is covered by the classification design, construction and through-life compliance rules and standards set by IACS. As

such, a classification by one of the IACS members is required to launch any maritime vessel and a close co-operation

with one of these is key to a vessel design company.

DK Group has had an extensive dialogue with Germanischer Lloyd and as portrayed in Appendix D, Germanischer

Lloyd is a strong supporter of DK Group’s ACS design and is confident that the system can be applied to ocean-going

vessels and also confident that the design will receive classification for the applicable vessel classes. Figure 3, below

illustrates the market share of each of the IACS members, and highlights that Germanischer Lloyd is one of the largest,

leading and most credible classification bureaus.

Contract Steel-cutting Keel-laying Launching Delivery

Period 3-9 Months 3 Months 3 Months 3 Months




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Figure 3: Market share of classification companies, vessels on order globally

China

Classification

Society

2.4%

Germanischer

Lloyd

16.9%

Other

9.4%

Indian Register of

Shipping

0.6%

Lloyd's Register

16.7%

Korean Register

of Shipping

1.5%

Det Norske

Veritas

12.8%

Bureau Veritas

5.5%

American Bureau

of Shipping

13.7%

Nippon Kaiji

Kyokai

16.3%

Registro Italiano

Navale

3.0%

Russian Maritime

Register of

Shipping

1.1%

Source: Ships and Shipping, Jan-06

4.2.6. Key test requirements applicable to the building of new vessels

New vessels are not being constructed without having performed a tank test. Standard vessels perform mainly fine

tuning tests on the design. More extensive tank tests are required for the development of new and improved designs.

The basic tank test procedure for any commercial vessel takes approx. 3 months excluding ice testing, which would add

another month. A test model must be manufactured and used for each vessel/vessel series that are tank tested. These

models are traditionally in a scale of approx 1:30.

DK Group’s proprietary wooden tank test vessel models have appendages and air cavity and a scale of approx. 1:30, in

line with industry standards. The main milestones and timing for going through the various tank tests for a new vessel

design are outlined in the table below. All tests can be completed within a 6 months timeframe as tests can overlap.

Table 4: Tank testing for vessels Test Time to tender design Scope and description of test

Basic 3 Basic tests are made to test and optimise the behaviour and performance of the air cavity. Tests are made

as resistance and self-propulsion tests with a running propeller. During tests the behaviour of the air cavity

is documented by video recordings.

Sea keeping 2 Sea keeping tests are made to document the effect of the air cavity in waves. Sea keeping tests are made as

part of the basic tests for optimisation of the air cavity. In the optimisation phase sea keeping tests are

made for a limited number of regular sine waves. In a later phase sea keeping tests are to be made in

irregular sea states.

Manoeuvring 1 Manoeuvring tests are made with and without air cavity to document the effect of the air cavity on the

manoeuvring characteristics.

Ice 1 Ice tests are made with air cavity to document and test the implications of ice pieces in the air cavity.

Operation in ice is expected to increase rapidly in the coming years.

Cavitation 1 Cavitation tests are made with the air cavity to document the possible cavitation on propeller blades.

Source: DK Group

4.3. Key vessel design selection criteria

Earnings capacity for a given new-build vessel price is the main new-build criterion for shipping companies and

ultimately also ship owners/investors. The earnings capacity of a vessel may be expressed by the transport efficiency

formula, defined as:

Payload (capacity) * Speed

Transport efficiency =

Power

This definition provides a means to compare different ship designs that are used for the same standard vessel. Table 5,

below outlines how each of these three parameters can increase the transport efficiency of a vessel:




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Table 5: Parameters to increase transport efficiency Parameter Improvement description Effect

Power reduction Reduction of required main engine power at a given

speed.

" Reduction of bunker/fuel consumption

" Reduction of environmental “taxes”

" Smaller engine investment required

Payload increase I Increase payload capacity though reduction of required

bunker/fuel for a certain voyage.


" Increase payload capacity

Payload increase II Increase payload capacity though reduction of

dimensions of machinery equipment.


" Increase payload capacity

Speed increase Increase speed at a given engine power. " Decrease in transport time of cargo under consideration

" Increase scope of a ships trade possibilities

" Roundtrip schedule ships could perform a larger number of

roundtrips in the same time span

Source: DK Group

Power reduction is the most interesting of the abovementioned parameters, as bunker/fuel (IFO 380) is the largest

expense item in the operational cost structure of a commercial vessel. Using an Aframax tanker as an example, the

daily bunker cost comprise 78% of the tankers total daily operational cost. The similar cost percentage for an 8,000

TEU container ship is 90% as outlined in Table 6, below.

Table 6: Bunker cost as pct. of vessel Opex Vessel type Present charter

hire

Opex excl. bunker Bunker cost (USD) Bunker cost % of

total Opex

Daily bunker

consumption

IFO 380 cost

(USD/ton)

Aframax 33,000 5,000 17,400 77.7% 58 tons 300

8,000 TEU 45,000 8,000 75,000 90.4% 250 tons 300

Source: Maersk Broker, Sep-06 , DK Group

This magnitude of importance of bunker cost to the shipping industry highlights that technology designs/applications

that can save bunker cost are likely to have a defining impact on the shipbuilding industry.

4.3.1. Constant focus on increasing oil prices

The value of bunker/fuel consumption savings depend on current and future oil prices. Bunker prices have increased

significantly the last four years in line with overall oil prices and are expected to remain high in the coming years.

Figure 4: Nominal bunker fuel prices 2000-2010 (USD per ton)

50

100

150

200

250

300

350

Q1-00A Q1-01A Q1-02A Q1-03A Q1-04A Q1-05A Q1-06A Q1-07E Q1-08E Q1-09E Q1-10E

US

D/t

on

(B

un

ker

s)

10

20

30

40

50

60

70

US

D/b

bl

(Bre

nt)IFO380 Bunker (Rotterdam)

IFO380 Bunker (forecast)

Brent

Source: Historical prices from 04-Jan-00 to 02-Oct-06; Maersk Broker; JCF; forecast oil prices based on consensus forecast from Handelsbanken,

Deutsche Bank, Citigroup, CreditSuisse, Goldman Sachs, Morgan Stanley, J.P. Morgan.

Note: The implied bunker prices are nominal and calculated based on the historical price relationship between Brent and Bunker. Bunker is

estimated to cost 65% of Brent oil on a like-for-like basis.




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4.3.2. Environmental “taxes” expected to increase shipping costs further

The Kyoto Protocol was ratified by more than 160 countries by 2005. These countries committed to reducing CO2

emission and emission of five other greenhouse gases (“GHG”) and to engage in emission certificate trading if emission

of these gas emissions were maintained or increased. The graph below shows the development of CO2 emission trading

prices per certificate per ton.

Figure 5: CO2 emission prices in USD per ton

5

10

15

20

25

30

35

40

Mar-2005 Jun-2005 Sep-2005 Dec-2005 Apr-2006 Jul-2006

US

D

Average price

USD 24.32

Source: www.eex.de (European Energy Exchange), Oct-06

Exchange rate: USD/EUR 0.785, as at 15-Aug-06

The Kyoto Protocol outlines that the International Maritime Organisation (“IMO”) is in charge of legislation on

limitation/reduction of GHG from ships as CO2 is the main gas emitted by ships. In 2005, the Marine Environment

Protection Committee (“MEPC”) under IMO, approved “Interim Guidelines for Voluntary Ship CO2 Emission Indexing

for Use in Trials”. Future CO2 emission “taxes” are expected to be levied based on this CO2 emission indexing,

expressing the ships CO2-efficiency in terms of CO2-emissions per unit transport work in tonne-km. The index can also

be used to assess fuel efficiency. CO2 emission trading for the shipping industry is expected to commence in 2011. The

current commercial vessel fleet has an annual CO2 emission of approx. 500,000,000 tons. If CO2 emission tax was set

at e.g. USD 20 per ton, the fleet CO2 emission would cost the shipping industry approx. USD 10bn. Please see

Appendix B for further details.

The environmental benefits from applying DK Group’s ACS are considerable. Approximately 40m tons of annual CO2

emission would be saved if the technology were applied to the current global fleet of target vessel classes. This would

equate to potential emission tax savings of around USD 800m at USD 20 per ton (Kyoto protocol).

IMO’s Annex VI describes SOx Emission Control Areas (SECAS) relating to the maximum sulphur content of fuel oil

used onboard ships. Present price for low sulphur fuel is around 10% higher than normal fuel. The Baltic Sea countries

have ratified SECAS by mid-2006 and the North Sea will become the second SECAS by late 2007. Additional

countries are expected to join thereafter as outlined below in Table 7. As the SECAS areas grow, vessels may have to

only use the more expensive low sulphur bunker, highlighting the need to apply technologies that reduce fuel

consumption and exhaust emission.

Table 7: SECAS areas

SECAS areas Joining date

The Baltic Sea mid-2006

The North Sea late-2007

US west coast expected 2007

Caribbean expected 2007

Mediterranean after 2007

Hong Kong after 2007

Japan after 2007

Source: International Maritime Organisation, Aug-06

Additionally, the IMO has set limits on emission of nitrogen oxides (NOx) from diesel engines and also prohibits

deliberate emissions of ozone depleting substances. A committee has been put together to identify and develop

necessary means required to achieve the limitation/reduction of GHG emissions from international shipping.

4.3.2. Steel prices have increased the overall price level of building new vessels

The largest investment cost item of constructing a vessel is the cost of steel plates. The cost savings from a given vessel

design will have to be held up against any marginal construction cost of applying a particular design. Given that the

improved vessel design is primarily on the haul, additional marginal expenses will be driven by the volume of extra




of 76

steel required and by the steel prices. The table below outlines the historical development in ship steel plate prices. The

prices have increased substantially over the last years, which have driven new-build prices upwards.

Figure 6: Steel plate price development 2001-06 (USD per ton)

200

300

400

500

600

700

800

Oct-01 Apr-02 Nov-02 May-03 Dec-03 Jul-04 Jan-05 Aug-05 Feb-06

US

D/t

on

Import from Japanese POSCO Dongkoon steel

Source: Goodmorning Shinhan Securities, Aug-06

4.3.3. Engines

The engine is the second largest cost component when constructing a commercial vessel. The ship owner has a strong

interest in reducing this significant initial investment as long as that the vessel maintains its operational

characteristics/speed performance.

Engines are manufactured to meet individual operational characteristics/speed requirements for different vessel classes.

The choice of engine is based on a foregoing tank test showing the power requirement. The engine manufacturer such

as MAN B&W will present various options that are suitable for the individual requirements of the vessel.

Normally there is a direct relationship between the speed requirement for a vessel and the size and cost of the engine.

This is of particular relevance for faster container ships and also highly relevant for slower tanker/LNG and bulker

segments. For instance, the cost of an engine for a 8,000 TEU container sailing at 25 knots is approx. USD 33m, the

engine cost of an Aframax sailing 15 knots is approx. USD 7.5m, while an engine for a 300,000 dwt VLCC sailing at

15.5 knots is approx. USD 13.5m (Source: MAN B&W Diesel, 2006).



Introduction to DK Group’s Air Cavity System (”ACS”)

of 76

5. Introduction to DK Group’s Air Cavity System (”ACS”)

DK Group’s main technology for ships and vessels is the Air Cavity System (“ACS “). This technology provides a way

of reducing the resistance of a forward moving body in water. This is, in principle, done by lubricating the wetted

surface of the body using air. The table below describes a high level overview of DK Group’s ACS concept of creating

artificial air cavities to reduce vessels’ water friction for both low-speed application and for high-speed application.

Additionally, the table below shows schematic layouts of DK Group’s low-speed ACS, and high-speed ACS.

Figure 7: Overviews of the DK Group’s ACS Schematic layout of low-speed application (from below) Schematic layout of high-speed application (from below)

Description of low-speed application Description of high-speed application ! A significant part of a ship’s hull is constructed with multiple

rigid cavities at the bottom part to prevent the air from

escaping sideways

! Air is mechanically forced into each of the cavities using an

air pumping system

! The cavities are filled with a film of air

! The air is continuously escaping at the back end of the

cavities, and to the sides of the vessel

! Constant re-supply of air to the cavities to maintain the air

film and limited friction

! A ship hull is supplied with one single dagger-shaped rigid cavity at the

bottom part to prevent the air from escaping sideways

! Air is mechanically forced into the forward end of the cavity of the hull

using an air pumping system

! The air forms a film which covers a significant part of the hull bottom.

! The air film is extended towards the aft end of the hull bottom by the

water flow at high-speed

! The air is continuously escaping at the back end of the cavity

! Constant re-supply of air to the cavity to maintain the air film and limited

friction

Source: DK Group

Figure 8 illustrates the air supply system for ACS on an Aframax tanker.

Figure 8: Schematics of DK Group’s ACS air supply system for an Aframax tanker

!"#$%&'%($$$$$$$)*+,-$./

!"#$0123.'($$4*5,-$.)

Source: DK Group

5.1. Application and commercial advantages

DK Group’s ACS vessels are expected to have superior operational characteristics vis-à-vis traditional vessels in the

various operational scenarios, as highlighted in Table 8, below.

Compressor

Air deflection before propeller

Air Cavity



Introduction to DK Group’s Air Cavity System (”ACS”)

of 76

Table 8: Superior transport efficiency of DK Group's ACS Scenario Payload

(Capacity)

Power

(Engine usage)

Speed

(Operational)

Comments

High payload: " Higher ! Same ! Same Higher transport volume per timeframe

Low engine

use:

! Same " Lower ! Same Reduce operational cost (reduction in bunker usage/cost and maintenance

from less wear on engines)

High speed: ! Same ! Same " Higher Higher transport volume per timeframe

Source: DK Group

DK Group’s strong strategic focus is on ACS designs for high payload and low engine use scenarios, and the designs

being tested and developed are solely for standard size vessels with significant new build market size potential.

Independent of operational scenario, DK Group’s ACS will add additional features and value adding components to

vessels, as outlined below:

Table 9: Additional operational strengths of DK Group's ACS design Improvement to current ship designs Description

Reduce CO2 and GHG emission Less bunker consumption on a like-for-like basis will reduce CO2 and other GHG emission

Improve manoeuvring capabilities Due to longitudinal keels

Shortened emergency stop distance By dumping air through an exhaust valve the water friction will increase and thereby stop the

vessel much faster

Decrease overgrowing on the hull An ACS vessel has a relatively smaller area of the hull as wetted surface and accordingly

exposed to resistance created by overgrowing. This factor reduces the average water friction of

the vessel versus a ship without ACS, and is a positive contribution to the overall fuel economy

Source: DK Group

The abovementioned financial and operational advantages will last through-out an ACS vessel’s 20-30 year economic

life. Accordingly, one must expect a positive impact on the resale value of an ACS vessel versus a comparable

traditional vessel.



Strategy, business model and positioning

of 76

6. Strategy, business model and positioning

6.1. Strategy

DK Group’s objective is to be the world-leading supplier of fuel efficient and environmentally friendly ACS designs to

the marine industry. The company will continue to capitalise on its technology, design and time-to-market advantage to

develop and build the premier franchise in the navel design industry.

In order to effectively penetrate the market, DK Group has decided to initially target two highly standardised vessel

classes:

! Aframax tanker

! 8,000 TEU container

These are the two large segments in the tanker and container ship segments, respectively. Once bunker consumption

savings of 10%-15% for tankers and 5-9% for container ships have been shown on large ocean-going commercial

vessels, demand is expected to build rapidly.

DK Group’s strategy is based on four key initiatives as outlined below:

! Complete and own “basic design” packages

! Protect intellectual property rights (“IPR”)

! Build relationships with the right industry partners and safe-guard independence

! Monetise on significant time-to-market advantage

6.1.1. Complete and own “basic design” packages

The best way of securing a vessel in the water as soon as possible is through completing basic design packages. A

“basic design” is a complete design of a vessel that has been classified by an IACS member. This design enables ship

owners and shipyards alike to easily evaluate and therefore price the vessel. Additionally, the ship yard, will be able to

immediately apply the design to vessels already in the order book - a dock slot.

The initial “phase I” focus is on completing “basic design” packages for an Aframax tanker and for an 8,000 TEU

container ship, and to secure initial “test” orders for two vessels of each class.

6.1.2. Protect intellectual property rights (“IPR”)

The proprietary technologies and designs must be protected in two phases: 1) Self-funding of “basic-design”

developments; 2) Relevant and appropriate patent protection of IPR.

6.1.3. Build relationships with the right industry partners and safe-guard independence

DK Group has close cooperation with renowned maritime industry experts to ensure best-of-class vessel designs. These

include navel architect company Knud E. Hansen, and tank testing facilities MARIN, FORCE and HSVA. As the scope

and scale of the business increase, new additional partners may be considered.

Close cooperation with Germanischer Lloyd, a leading ships classifications bureau c.f. 4.2.5 above, ensures that the

Company’s basic designs are classified in a timely and efficient manner. Retaining a good relationship remains a top

priority.

Given the potential of DK Group’s ACS technology and based on dialogues with major shipping companies, shipyards

and ship owners, these would all be interested in exclusivity. This, however, would limit the potential market size

opportunity to the Company and DK Group is focused on maintaining its independence. The Company’s relationship

with Maersk Broker, a top 5 worldwide broking house, ensures an arms-length relationship with potential future

customers. As the Company grows, additional broker relationships will be formed.

6.1.4. Monetise on significant time-to-market advantage

Once “proof-of-concept” has been delivered in the shape of a launched vessel, DK Group will focus on monetising on

its first mover advantage. The immediate approach is focus on penetrating and growing market share in the Aframax

and 8,000 TEU segments, as well as launch and marketing of two additional “basic design” packages for VLCC and

10,000 TEU vessels. Once the Company has captured meaningful traction and contracts in these vessel classes, DK

Group will focus on developing additional “basic designs” to expand scope and scale of the business. This will be

pursued through continued product development and expansion in applicable vessel segments relevant for ACS

technology.




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6.2. Royalty based, high margin revenue model

DK Group will charge its customers a fee of 1% of the vessel price, which is an equivalent revenue to that of

shipbrokers’. Figure 9, below outlines average prices for 2006 to date for identified target vessels classes. These high

unit price support the scalable high margin business model of the Company.

Figure 9: 2006 prices in USDm for identified target vessels

Tanker prices 2006

45.6 49.463.4

73.4

121.0

0

25

50

75

100

125

150

175

200

225

Handymax

(45,000 dwt)

Panamax

(70,000 dwt)

Aframax

(115,000

dwt)

Suezmax

(160,000

dwt)

VLCC

(300,000

dwt)

US

Dm

Container prices 2006

41.0

59.0

87.0

110.0123.0

150.0

180.0

0

25

50

75

100

125

150

175

200

225

1,700 -

3,000

TEU

3,500

TEU

5,500

TEU

7,000

TEU

8,000

TEU

10,000

TEU

12,000

TEU

US

Dm

Bulker prices 2006

29.035.0

59.7

95.0

0

25

50

75

100

125

150

175

200

225

Handymax Panamax Capesize VLBC

US

Dm

LNG / LPG prices 2006

91.4

214.6

0

25

50

75

100

125

150

175

200

225

LPG (82,000 cmb) LNG (154.000 cbm)

US

Dm

Source: Maersk Broker, Aug-06

The Company’s payment terms will follow the general ship building process as outlined below:

Figure 10: Standard payment terms in the shipbuilding industry

Source: Maersk Broker, Aug-06

The revenue model supports high revenue per order, which will translate into a high margin business given the limited

fixed cost structure in DK Group. The Company applies a flexible cost model to any given vessel project, which will

include outsourcing to subcontractors of project management, design and technical tasks. DK Group’s technical team

will work closely together with design and technical consultants to ensure the best application of the Company’s

proprietary technology and designs.

6.3. Key project mile stones to completing “basic designs”

The Company expects to have complete “basic designs” for Aframax tanker and 8,000 TEU container ship by Oct-07

and Dec-07, respectively. At the same time DK Group will build a large demonstrator vessel model, to ensure

additional precision of the scaling numbers. This kind of model is used by naval designers to support test results from

smaller models and give significant comfort. The model is expected to visually illustrate how the air system will work

on a full scale vessel.

Table 10, below outlines the Company’s development time table for these two basic designs.

Contract Steel-cutting Keel-laying Launching Delivery

20% 20% 20% 20% Payment: 20%




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Table 10: Development milestones and time to "Basic design"

Dates R&D Completion % Dates R&D Completion %

Tank tests

Resistance Jan-07-Jun-07 100% M ar-07-Aug-07 25%

Sea M ar-07-Jun-07 90% M ay-07-Jul-07 25%

Navel architects

Initial design Jan-07-Aug-07 100% M ar-07-M ay-07 10%

Basic design Apr-07-Sep-07 15% Jun-07-Nov-07 0%

Classification Oct-07 20% Dec-07 0%

M onths to classification 12 M onths 14 M onths

Total costs (EURk) 1,500 1,700

Aframax ContainerKey milestones

Source: DK Group

6.4. Analyses of operating savings per vessel class

Test results from tank testing support high resistance improvement levels. Dependant on vessel class, the general

resistance improvements are tested to be between 5% – 15%. Recent individual tank tests show approximately 15%

resistance reduction for the VLCC class and over 16% resistance reduction for the Aframax class. These tank test

results have been undertaken at FORCE in Denmark and the results have been computed by Knud E. Hansen. HSVA

has subsequently verified the scaling results, which have been enclosed in appendices Appendix F and Appendix G.

Table 11, below outlines the marginal financial impact DK Group’s ACS has on key investment and operational cost

items on a commercial vessel, based on a standard vessel cost breakdown.

Table 11: Investment and operation effects of applying DK Group's ACS Key items Costs savings Additional costs Cargo Handling " Increased payload capacity per timeframe " None Variable cost

Bunker

" Reduced propulsion power

" SECAS regions (low sulphur)

! Power supply for air system

Port Dues

Environmentally friendly ship (e.g.

Hamburg-Germany)

" None

Canal Tolls & Misc. ! None " None

Environmental taxes " CO2 emission taxes

" Other GHG taxes

" None

SG&A

Manning ! None " None

Paint " Less cleaning due to constant water air film (flow)

" None

Stores ! None " None

Repair & Maintenance

" Less maintenance as less engine power installed

" Reduced engine average load leading to less

wear on engine components

" Reduce overgrowing on significant part of

the hull

! Surface conservation of cavity area

! Air supply and control systems

! Auxiliary systems

Insurance

! None ! Increased value of Hull and Machinery

Administration ! None " None

Initial investment " Smaller engine requirement ! Additional steelwork

! Air system (compressor and piping)

Final disposal of vessel " Increased value of Hull and Machinery " None

Source: DK Group

6.4.1. Significant quantifiable net savings from reduced bunker use and potentially from smaller CO2 emission taxes

The precise quantifiable financial impact on a given vessel will differ from case to case, however, the application of DK

Group’s ACS will secure significant bunker cost savings as well as have the potential for savings on future CO2

emission taxes.

Figure 11, below highlights the significant opex savings potential from applying ACS. Annual net savings potential of

USD 600k for an Aframax tanker, USD 1.1m for a VLCC tanker, and USD 1.2m for a 8,000 TEU container ship.




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Figure 11: Annual net savings using ACS for Aframax, VLCC and Container 8,000 TEU

496

900 950106

193 224

602

1,1741,093

0

500

1,000

1,500

2,000

Aframax - 115,000 dwt VLCC - 300,000 dwt Container 8,000 TEU

Savings

(in USDk) CO2 emission savings

Bunkers savings

Source: MAN B&W Diesel, 2006, DK Group

Note: Operational savings are net of required bunker to run DK Group’s ACS compressor system

Consensus bunker prices assumed till 2010, thereafter grown by 2.5% inflation

CO2 certificate prices assumed at USD 20 per ton

20 year economic life of vessel, net ACS investment cash flows are discounted at 10%

For additional assumptions please see Appendix A

6.4.2. Vessel cost analysis

While DK Group’s ACS reduces operating cost from smaller fuel consumption, DK Group’s development team also has

a priority focus on minimising the impact of the additional cost arising from ACS.

The ACS system has no significant and no quantifiable operational cost over and above the required engine power for

running the ACS compressor. This cost item is netted off when calculating the net bunker savings.

Figure 12: Schematics of DK Group’s ACS hull plating requirements Schematic layout of additional plating requirements from ACS

Aframax example:

Weight of ACS sides 95 t

Weight of keels 260 t

ACS weight increase 355 t

Wider beam weight 345 t

Total weight increase 700 t

Additional Shell Plating

Additional Floor Plating

Area equivalent to basis vessel

Source: DK Group

Additional initial investments cost for the application of DK Group’s ACS amounts to approximately 2.0%-4.0% of the

total vessel cost. This includes additional investments in steel to build the cavities as outlined in Figure 12 and the

purchase of the air compressor system.

Table 12 and Table 13, below outline the breakdown investment cost for an 8,000 TEU container ship and an Aframax

tanker.

Table 12: Marginal initial vessel investment cost analysis for an 8,000 TEU container

Main marginal investment items for DK Group's ACS USD in % Steel (tons) in %

Standard new build 123,000,000 100.0% 16,000 100%

Additional hull cost to apply DK Group's ACS 1,750,000 1.4% 700 4%

DK Group's ACS Compressor/piping 350,000 0.3%

Reduced engine requirement due to DK Group's ACS (990,000) (0.8%)

Total construction cost 124,110,000 100.9% 16,700 104%

Royalty payment to DK Group 1,241,100 1.0%

Total vessel cost 125,351,100 101.9% Source: DK Group, input from MAN B&W Diesel , 2006 regarding engine cost




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Table 13: Marginal initial vessel investment cost analysis for a 115.000 dwt Aframax tanker


Standard new build 63,425,000 100.0% 16,000 100%

Additional hull cost to apply DK Group's ACS 1,750,000 2.8% 700 4%

DK Group's ACS Compressor/piping 350,000 0.6%


Total construction cost 65,150,000 102.7% 16,700 104%

Royalty payment to DK Group 651,500 1.0%

Total vessel cost 65,801,500 103.7%

Source: DK Group, input from MAN B&W Diesel , 2006 regarding engine cost

6.4.3. Expected higher vessel resale value

A vessel with ACS is expected to have a higher resale value than a regular vessel, given the improved financial and

operational characteristics.

6.4.4. Financial impact analysis of investment in a DK Group ACS vessel

As a general rule, the return on applying DK Group’s ACS technology increases with the size of the hull surface

covered by ACS, the daily bunker consumption of a given vessel and the bunker price.

The two figures below (Figure 13 and Figure 14) show the financial impact of an investment in a DK Group’s ACS

technology for Aframax, VLCC and 8,000 TEU container vessels. The financial impact is calculated using two

different methodologies. The first is the payback period, or the number of years it takes the vessel to break-even for the

marginal investment in DK Group’s ACS technology. The second figure shows the IRR% from investing in applying

DK Group’s ACS technology to a vessel.

Two scenarios have been applied. The first scenario includes savings from bunker/fuel, while the second scenario

includes savings from bunker/fuel as well as saved future CO2 emission taxes.

Figure 13 shows short payback periods of 2-5 years from application of DK Group’s ACS technology to the selected

commercial vessels classes.

Figure 13: Payback period in two scenarios – Aframax, VLCC and Container 8,000 TEU

4.8

3.5

2.5

3.9

2.9

2.0

0

1

2

3

4

5


Yea

rs

Bunker savings

Bunker savings + CO2 emission tax savings

Source: DK Group








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The IRR of applying DK Group’s ACS technology to commercial ocean going vessels range from 20% – 50%

dependent on vessel type and selected scenario, as outlined in the table below.

Figure 14: IRR% in two scenarios – Aframax, VLCC and Container 8,000 TEU

20%27%

39%

25%

34%

48%

0%

25%

50%

75%

100%


IRR

Bunker savings

Bunker savings + CO2 emission tax savings

Source: DK Group







Competition and competing technologies

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7. Competition and competing technologies

DK Group’s ACS technology with focus on ocean-going low-speed applications is an industry wide paradigm shift and

DK Group does not expect any competition on the low-speed ACS application in the near to mid-term. To date the

Company has neither faced any competition for its low-speed ACS application, nor has DK Group identified any

competing developer of ACS technology, globally.

Other technologies offered to the market in order to increase efficiency or reduce fuel consumption are primarily

complementary as described in the table below:

Table 14: Competing technologies to DK Group's ACS

Technology Description Effect on ACS

Heat recovery

system

Overall engine efficiency on large vessel engines is approximately 49 %, with 51 %

of the effect lost as heat. A heat recovery system may recover 6-12% of the heat as

electrical energy. Transferring this energy to the propeller shaft is at a 5 % energy

loss

The potential net fuel saving from a heat recovery system is estimated at 6-11 %

A complementary technology:

Heat recovery systems are totally unaffected

by ACS

Higher efficiency

propellers

More efficient propellers such as the ‘Kappel’ propeller may increase the efficiency.

The potential bunker saving is estimated to be around 3-5 %


More efficient propellers are unlikely to

affect ACS

Contra rotating

propeller

Contra rotating propellers utilizes the rotation energy of the main propeller slip

stream to increase efficiency from a contra rotating propeller. Most optimistic

estimates suggest a total propulsion efficiency increase of 8-10 %. However this is

for fast, high-powered ships with high propeller loads. For slower ocean-going

commercial vessels with less propeller load the fuel saving will be significant less


Increased efficiency of contra rotating

propellers is unlikely to affect ACS

“Shark” skin

paint

Shark skin paint is a way of reducing the frictional resistance of the entire wetted

surface of the hull

No sufficiently efficient paint has been developed to date


Shark skin paint is applicable to ACS hulls

Source: Knud E. Hansen

However, none of these technologies are a direct competitor to ACS. As per the table, they could all be classified as

complementary technologies.

7.1. History of ACS technology

Systematic research on Air Cavity applications for ship resistance reduction was started at the Russian Krylov

Shipbuilding Research Institute in the 1960s. Successful laboratory tests were followed by implementation of the Air

Cavity concept on full-scale river cargo ships and barges. Those trials demonstrated significant reduction of up to 30%

of the power needed for vessel motion in optimal speed regimens.

In the early 1970s, the first high-speed, full-scale ACS was built under the initiative of I.I. Matveev at the Central

Hydrofoil Design Bureau. The speed increment achieved on the ACS boat reached 27% over and above an analogous

boat without the ACS. The energy expense for air supply was below 3% of the total power usage. R&D activity at the

Central Hydrofoil Design Bureau has resulted in the several vessel types. Examples include landing boat Serena (cargo:

45 t vehicles) and ACS Mercury, a sea-going patrol boat capable of safe sailing in Sea State 5. Besides these mid-size

vessels, runabouts using artificial cavitations are also built in Russia. Due to low commercial applications and success

of high speed ACS these Russian initiatives have faded.

Marin in Holland is performing an EU funded research program for low speed air lubricated ships. These tests are less

advanced and sophisticated than those of DK Group, as they are only for river ships and coastal navigation. These test

are focused on river ships (barges) and coastal navigation. The use of air lubrication does not apply to large ocean-

going vessels, hence Marin does not focus on DK Group’s target segment.



Development pipeline and “time-to-market”

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8. Development pipeline and “time-to-market”

Applying ACS, to ocean going vessels in a commercial environment, is a technically demanding and inherently

complex task. Significant understanding of physical multi-phase flows is required to achieve positive outcome.

Numerous analyses by computer based navel design models and tank tests have been undertaken to understand the

impact of DK Group’s design to various vessel classes. Since year 2000 the Company has performed around 20

individual tank test projects under an umbrella focussed on five vessel classes:

Table 15: Overview of DK Group's tank test results

Vessel type Date Size Speed in knotsVLCC Tanker 2004-2006 320 meter 15-17

Aframax Tanker 2004-2006 245 meter 14-16

Bulker (Retrofit) 2002-2003 110 meter 14-16

Ropax 2001 120 meter 45

Container 2000 1,500 TEU 35

Source: FORCE, Marin, Knud. E. Hansen, HSVA

Figure 15 and Figure 16 depict two of DK Group’s tank test models for tanker/bulkers and for RoPax vessels,

respectively.

Today, DK Group’s core competences are full vessel design packages of ACS vessels to ship owners and shipyards,

with a short term strategy focused on two basic design packages for Aframax tankers and 8,000 TEU container ships, as

outlined in section 6.1 above. The Company will then be in a position to go to market (shipyards and ship

owners/investors) with these two complete products.

The Company’s basic technology, understanding and designs are at such an advanced level that the required time for

development, fine tuning and completion of “basic design”/ full product is limited. In fact, management expects that it

will take between six months and a year to complete the testing and finish a “basic design” for tanker and container,

VLCC and LNG. Accordingly, the company can turn up the development speed on any specific vessel class, as

appropriate. This means that time-to-market can be much quicker for any one vessel class.

Nevertheless, it is important to understand the current status of each vessel class to appreciate DK Group’s time-to-

market. The development pipeline of DK Group’s identified target vessel classes can be arranged in two main progress

categories:

1) “Ready for market”: Tankers (Aframax and VLCC), Bulk carriers, general cargo

2) “Additional development required”: LNG/LGP, Container

8.1.1. Category 1: Ready for market

Tankers are typical low-speed displacement vessel for which an ACS would be beneficial from a powering perspective.

Additionally, tankers are ideal for ACS as they have a highly compatible double skinned hull construction, which can

be added as a simple recess in the bottom area’s outer skin.

DK Group has carried out extensive studies on Aframax and VLCC types. The pre-studies concluded good economic

viability for applying ACS to new vessels. Accordingly, a model scale tank test was completed on a 240.000-tonnes

VLCC tanker. This test demonstrated fuel savings ranging from 10% to 15%. The various pieces of analyses were

performed at FORCE’s facilities in close cooperation with Knud E. Hansen. The development study included

Figure 15: DK Group’s low speed ACS model of an

Aframax/VLCC/bulk vessel

Figure 16: DK Group’s high speed ACS model of a

RoPax





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calculations of the cavity layout and arrangement, performance of model tests, and a thorough general shipbuilding and

operational issue review of ACS.

Figure 17, below shows the outline of an Aframax tanker and the area on the hull bottom that can have DK Group’s

ACS applied is 3,650m2. The graph in Figure 18 shows the tank test results verified by HSVA. The tank test supports

resistance improvement levels between 15%-20%.

Figure 17: Aframax Tanker Modified for ACS Figure 18: Resistance improvements: Aframax

Principal Dimensions Consumables

Length over all 244.00 m Heavy fuel oil 2800 m3

Length between pp 234.00 m Marine diesel oil 185 m3

Breadth, moulded 45.32 m Lubricating oil 130 m3

Depth, moulded 21.00 m Fresh water 410 m3

Design draught 11.90 m Ballast water 39,600 m3

Gross tonnage 58,500 GT

Speed, service, 15 % s.m. 14.4 kn Cargo capacity

Propulsion power, 85 % MCR: 9780 kW Cargo tanks 1 to 5, P+S 120,000 m3

Fuel consumption: 1.65 t/h Slop tanks P+S 2,200 m3

Deadweight

Deadweight at design draught with air in cavity: 80,385 t

Fuel saving by ACS ~ 18% ~ 10.8 t/day

or speed increase ~ 0.8 knots

Source: DK Group Source: HSVA

Figure 19, below, shows the outline of a VLCC tanker and the area on the hull bottom that can have DK Group’s ACS

applied is 4,300m2 – larger than for the Aframax. The graph in Figure 20 below shows the tank test results verified by

HSVA. The tank test supports resistance improvement levels of around 15%.

Figure 19: VLCC Tanker Modified for ACS Figure 20: Resistance improvements: VLCC







Speed, service, 15 % s.m. 15.9 kn

Propulsion power, 85 % MCR: ~21.000 kW Cargo capacity

Fuel consumption: 90 t/day Cargo tanks 1 to 5, P+S 340,000 m3Slop tanks P+S 10,100 m3

Deadweight

Deadweight at design draught with air in cavity: 283,125 t

Fuel saving by ACS ~ 15% ~ 13.5 t/day


Source: DK Group Source: HSVA

The ship hulls of tankers are very similar to those of low-speed (approx. 15 knots speed) bulk and general cargo vessels.

Therefore, DK Group’s current designs for tankers are applicable to these vessels and limited additional tank testing and

development is required. Completion of basic designs for these vessel types could require additional testing including

sea keeping test and manoeuvring test. Also, testing in ice may be considered important.

High-speed bulk vessels have slimmer design than low-speed bulkers, and tank testing would be more advanced to

progress “basic designs” for these vessel classes.

ACS area: 3,650 m

2


ACS area: 4,300 m2





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8.1.2. Category 2: Additional development required

Container segment power/speed predictions show significant potential for fuel saving, and product development is

focused on dealing with speed of 25-27 knots - 80% faster than tankers.

Figure 21: 8,000 TEU Container Ship with ACS Figure 22: Resistance improvements: Container

Fuel saving by ACS ~ 7.6% ~ 28 t/day


Source: DK Group Source: Knud E. Hansen

The above Figure 21 shows a drawing of an 8,000 TEU containership and outlines the area where ACS can be applied.

Figure 22 to the right shows that the resistance potential from applying ACS is in the range of 7.5%.

LNG/LPG vessels are highly specialized ships in a nascent but fast growing new build-market. The hull shapes are

close to those of tanker vessels, making these relevant and significant market opportunities for DK Group. Ship owners

may have varying requirements for speed, requiring addition tank testing and design development by DK Group, before

a market ready product is developed.

Figure 23: LNG Tanker Modified for ACS Figure 24: Predicted HFO saving per day







Speed, service, 10 % s.m. 19.5 kn

Propulsion power, 90 % MCR: ~25,800 kW Cargo capacity

Fuel consumption: ~110 t/day Cargo tanks 1 to 4 215,000 m3

Deadweight

Deadweight at design draught with air in cavity: ~113,950 t

Fuel saving by ACS ~ 13.3% ~ 14.7 t/day


Source: DK Group Source: Knud E. Hansen

Figure 23, above, shows the outline of an LNG tanker and the area on the hull bottom that can have DK Group’s ACS

applied is 4,230m2 – larger than that of an Aframax. The graph in Figure 24 shows the predicted resistance

improvement levels computed based on the characteristics of an LNG tanker in calm water. DK Group estimates the

overall ACS potential range to be 7-9%. The additional test requirements for containerships and LNG/LPG vessels are

expected to add up to 4 months to the development time of a tanker vessel.

ACS area

ACS area: 4,230 m2




Sales and marketing strategy

of 76

9. Sales and marketing strategy

DK Group has had direct ongoing dialogues with ship owners, shipyards and most other relevant industry parties, over

the past years and has developed strong relationships. As part of this dynamic interaction, the Company receives

continuous feedback on its technology development and this is then incorporated into the R&D efforts. DK Group

believes these dialogues are important to ensure successful product development and sales.

At the same time, DK Group recognises that an effective and scalable third party sales channel should be in place for

the commercial launch. For this reason DK Group has developed a strong relationship with Maersk Broker, one of the

industry leading shipbrokers in the new-build vessel market. Maersk Broker was established in 1914, employs more

than 200 staff and is the shipbroker that has the largest global reach with eleven offices worldwide.

In fact, Maersk Broker and DK Group recently entered into a formal agreement whereby Maersk Broker acts as sales

channel for DK Group. The formalisation of this relationship adds significant credibility to DK Group’s ACS

technology and supports the long-term success of the Company. Working with Maersk Broker allows DK Group to

draw on specialised sales competencies for the new-build market, and this will be critical as the Company negotiates

contracts.

As mentioned in chapter 6, the short-term focus for DK Group is on two initial target vessel classes:

! Aframax 115,000 DWT tankers

! 8,000 TEU container ships

Maersk Broker and DK Group are developing a joint go-to-market strategy for the abovementioned vessel classes,

targeting both ship owners and shipyards.

The two vessel classes represent two highly active new-build segments in the tanker and container markets,

respectively. The focus on these should secure effective market awareness and create a strong basis to expand DK

Group’s offering from and to penetrate other vessel segments. DK Group expects to have completed two additional

basic design packages by the time the initial “test” orders have been launched and proven the viability of the

Company’s ACS design. The vessel classes are VLCC and 10,000 TEU, c.f. 6.1.4 above.

Sales and marketing efforts will be timed and coordinated to fit the completion of DK Group’s basic design packages

for these vessel classes.

Table 16: Largest identified ship owners and shipyards

Ship owners Shipyards

Tanker vessels Containerships Name Country

Fredriksen Group A.P. Møller - Mærsk A/S Dalian New shipbuilding China

Mitsui OSK MSC Jiangnan China

Nippon Yusen Evergreen New Century China

Teekay NSB Niederelbe Waigaoqiao China

Overseas Shipholding ER Schiffahrt Liaoning China

Zodiac Maritime COSCO Hudong-Zhonghua China

Euronav (UK) Hapag-Lloyd Chengxi (CSSC) China

Angelicoussis Group CP Offen KHI (Nantong) China

MISC CMA-CGM China Shipbuilding Taiwan

Dynacom Tankers Kawasaki Kisen IHI (Kure Shipyard) Japan

Imabari Japan

Bulker carriers LNG vessels Kawasaki Japan

Koyo Japan

COSCO MISC Mitsui Japan

Mitsui OSK Shell Universal Japan

Nippon Yusen Mitsui OSK Imari Japan

Kawasaki Kisen Nigeria LNG Oshima Japan

Zodiac Maritime Fredriksen Group Mitsubishi Japan

China Shipping Group Nippon Yusen Hyundai Korea

Enterprises Shipping Bergesen Samsung Korea

Hanjin National Gas Shipping Daewoo Korea

Cardiff BGT Hanjin Korea

Angelicoussis Group Kawasaki Kisen Lindø Denmark

Source: Maersk Broker, Oct-06, Size based on total DWT size of fleet.



Sales and marketing strategy

of 76

Maersk Broker and DK Group will be developing a detailed joint go-to-market strategy for the abovementioned vessel

classes, targeting both ship owners and shipyards. This approach will seek to address the most important ship owners

and shipyards as listed above, in Table 16.

The overall marketing strategy will also include a market communication program to industry organisations such as

IMO, environmental agencies and legislators. This way the Company will push for acknowledgement of the significant

environmental benefits DK Group’s ACS technology provides.

Additional third party sales channels will be added as required.

DK Group will continue to work closely with ship owners, with whom the Company already has a direct dialogue and

whom are awaiting the Company’s basic design packages. These indications of interest represent a significant market

potential of a new-build pipeline of more than 200 vessels relevant for DK Group’s ACS technology.



IPR and patent strategy

of 76

10. IPR and patent strategy

DK Group’s strong product development capabilities are essential to support the strategy of enhancing its core

technology to cover additional vessel classes. The Company has made and will continue to make substantial

investments in R&D to extend the technological lead over any potential competitors. The extensive knowledge of ACS

technology has materialised in three ever-growing patent families.

The inventions described in the patent applications were developed by Jørn Winkler and Professor Konstantin Matveev,

the son of I.I. Matveev, Russian Central Hydrofoil Design Bureau. Professor Matveev is professor at Washington State

University and granted a US Permanent Resident status.

Professor Matveev is bringing to DK Group a significant knowledge base of ACS from his past Russian experience

with air cavity technology. He is acting as consultant to DK Group and assists Jørn Winkler in the design and

development of ACS models. In particularly, he is assisting in resolving peculiarities of testing air cavity models,

interpreted test results, as well as modification suggestions for further improvement of hydrodynamic performance.

Results achieved in tests allow DK Group to market the ability of practical development of full-scale ACS. Innovations

developed by DK Group’s Jørn Winkler and Professor Matveev are documented in the international patent applications

filed by DK Group.

Table 17: DK Group's patent families Patent family # Description Developer

PCT/NL03/00326

Relates to an air cavity vessel with wedge-shaped cavities,

longitudinally offset cavities and roll control means, and to a

method of constructing the same

Jørn Winkler / Konstantin Matveev

PCT/NL03/00328 Relates to an air cavity vessel with air deflector Jørn Winkler / Konstantin Matveev

EP06114535.5 Relates to a wave deflector in an air cavity vessel Jørn Winkler / Konstantin Matveev

Source: DK Group

Table 17: DK Group's patent families, provides an overview of the patent families belonging to DK Group NA NV.

The most recent development is EP06114535.5 where DK Group found an innovative air cavity design. A patent

application for this was filed with the European Patent office on 25 May 2006.

Nederlandsch Octrooibureau certifies the strength, ownership and validity of the DK Group’s patent portfolio in the

document attached in Appendix C.

10.1. Patent strategy - DK Group’s future patent portfolio

DK Group operates at the forefront of the navel vessel technology/design market and employs an aggressive patent

strategy. The dynamic patent drafting and filing process is undertaken in corporation with Nederlandsch Octrooibureau

and is key in the nascent large ocean-going commercial vessel ACS market.

The Company’s development strategy is to order and pay for “basic design” approved by a classification bureau such as

Germanischer Lloyd. This way DK Group secures that the Company retains all the rights to any future use of the

design.

The Company expects to file 3-4 new patent applications a year, through the PCT, for the next five years. 2.5 years

from each filing, on a case by case basis, the development team will decide if the technology has matured sufficiently

and whether chances for patent grant are sufficient to proceed to the national proceedings for grant. The Company

expects that 20% of PCT applications will result in significant patent protection in 10 ship-building countries.

As an associate to DK Group, Knud E. Hansen is in daily contact with the Maritime Institute, where all computer

simulations and model testing for ACS are being performed under a Research and Development Services Agreement.

10.2. Legal protection / ship arrest within the maritime industry

National and International Law, including the TRIPs Agreement (The World Trade Organization's Agreement on Trade

Related Aspects of Intellectual Property Rights), ensure that granted patent rights can be enforced through, e.g.,

injunction proceedings and/or arrest proceedings. Any ship builder, ship owner or ship operator who exploits any

patent rights belonging to DK Group without permission from DK Group, will thus risk the possibility of DK Group

filing an application for injunction and/or arrest with a court of competent jurisdiction.

The vessel classes that DK Group targets are of such a large size that they are almost only used in international

shipping. If a ship owner were to purchase an ACS vessel without permission from DK Group, he would run an

ongoing risk of injunction and/or arrest when applying the vessel in its operations. The result could be a vessel out of

commission, failed/delayed delivery of cargo and additional harbour cost. Altogether, a significant financial and

reputational risk. DK Group’s management and Dutch legal advisor are of the opinion that the downside to the ship

owners is too high compared with the limited benefit of saving one percent on the initial vessel purchase price.



Corporate

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11. Corporate structure and governance

DK Group’s founder and executive team have extensive shipping experience gained with both multinational enterprises

and successful start-up ventures. This provides the organisation with the relationships and experience required to

source and structure strategic alliances and well as the entrepreneurial agility necessary to lead the ship building

industry to the next level.

11.1. Connected company advisors

DK Group has historically drawn on significant industry expertise and relationships from selected industry and

commercial experts including Ulrik Schmidt, founder of High-Tech Ship Management; Johannes Johannesson, project

engineer and naval architect, Scanlines Danmark and Jürg M. Schmid, CEO at BNP Paribas Private Bank, Monaco.

Additionally, the Company continues to work closely with Professor Konstantin Matveev on product development

initiatives.

11.2. Organisational structure and executive team

Christian Eyde Møller joins the Company as CEO in connection with the fund raising, and the post transaction

organisational structure is outlined in Figure 25 below. The Company has historically operated as a virtual organisation

and outsourced all functions, not core to the business. Going forward the DK Group aims to add relevant personnel to

ensure strong technical sales support as the Company grows. Over and above this, the Company will focus on

remaining a lean organisation.

A share based incentive programme has been created for current and future management and key employees. The

programme comprises 5% of the post transaction shares outstanding.

Figure 25: Company organisational structure

Christian Eyde Møller

CEO

Jørgen Clausen

COOTo be hired

(1)

Operations

Jørn Winkler

Founder/R&D

Source: DK Group

1) Candidate identified

Christian Eyde Møller, Chief Executive Officer

Christian joins the Company as CEO, from a position as International President at TDC Solutions A/S. He brings 20

years of executive experience from international telecoms, trading and shipping industries, as well as a strong

connection to the shipping industry. Prior to joining TDC he was Regional President at Sprint, responsible for all Sprint

operations outside the Americas. Christian has successful experience in shipping, as he commenced his career at The

East Asiatic Company (EAC) in 1985, where he build-up a highly profitable shipping route in Vietnam for EAC – The

initial investment was paid back within 12 months. Christian entrepreneurial experiences include senior executive

positions at Ebone (GTS) and Equinix. At both companies he grew the businesses through acquisitions and secured

successful trade sale exits for the investors. Currently, Christian is vice-chairman at HTCC. Inc., (listed on American

Stock Exchange) and on the board ECTA (European Competitive Telecommunications Association).

Christian graduated in business and economics from the London School of Foreign Trade in 1984 and graduated in

maritime law from Copenhagen Business School in 1987. He was born in 1963, and is married with three children.

Jørn Winkler, Founder

Jørn is the founder of DK Group and the drive behind the Company’s unique approach to ACS technology. Going

forward he will mainly be focused on the ongoing R&D efforts and sales. Jørn has in-depth understanding of

aerodynamics from his years as an airplane and helicopter pilot and from being an airplane test pilot. Applying this

highly relevant, yet new approach and knowledge to maritime vessel designs, he has been the driving force behind DK

Group’s industry defining ACS technology. Jørn was born in 1964.

Jørgen Clausen, Chief Operating Officer

Jørgen has significant relevant industry experience and management expertise from over 30 years in global shipping at

leading shipping companies. He joined DK Group’s management team in 2000, while retaining his role as managing

director for Scandinavia at French CMA CGM (JV with Norwegian Wilhelmsen). From 1997-2003 Jørgen was



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managing director for Denmark at British Inchcape Shipping Services, which remains the largest private global provider

of marine management service.

Prior to this he joined Chr. Jensen in 1982 with responsibilities for traffic to/from Far East, the Middle East, Central-

and South America, South- and East Africa and Australia. Further to the liner traffic activities Jørgen was manager for

the logistic department. He was involved in Russian business development as the world wide commercial traffic

commenced into Russia in the early nineties. Jørgen commenced his career at Lehmann Junior in 1975 working with

the Japanese carrier Nippon Yusen Kaisha (NYK Line) on import and export to/from Far East/Japan. Jørgen was born

in 1957, and is married with two children.

11.3. Board structure

In order to ensure a strong corporate governance structure going forward, the Company is in close dialogue with

individuals globally that have an appropriate background and experience to support the healthy development of DK

Group. The international group comprises senior shipping industry executives and renowned individuals from financial

and advisory sectors. Further details on identified potential board members will be disclosed at management

presentations, as appropriate, and DK Group looks to discuss the final composition of the Board together with the lead

investor.

11.4. Current shareholder structure

Table 18, shows DK Group’s shareholder’s register as at 01-Oct-06.

Table 18: DK Group’s shareholders

Name Role Class A shares Class B shares % of capital % of votes

Jørn Winkler Founder 2,814,583 2,500,000 28.0% 25.2%

Rosnoen (Switzerland) Investment company 1,604,167 - 8.5% 14.3%

Fivecom Ltd. (Jørgen Clausen) COO 1,250,000 - 6.6% 11.2%

Industriselskabet A/S (Leon Sass) Private 979,167 - 5.2% 8.8%

Thorben Nielsen Private 858,333 - 4.5% 7.7%

Fleetwood Ltd. (Vinnie Andersen) Private 795,834 - 4.2% 7.1%

Jørgen Fredelund ex. CEO 750,000 - 4.0% 6.7%

John Silvin Private 700,000 - 3.7% 6.3%

Konstantin Matveev Private, Consulent 500,000 - 2.6% 4.5%

Laurant Biousse Private 389,583 - 2.1% 3.5%

Kaare Sørensen Private 247,917 - 1.3% 2.2%

Patrick Delahaye Private 175,000 - 0.9% 1.6%

Ulrik Schmidt Private 122,917 - 0.6% 1.1%

Other Private - 5,260,000 27.8% 0.0%

Total 11,187,500 7,760,000 100.0% 100.0% Source: DK Group, as of 01-Oct-06



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12. Financials

12.1. Historical financials

The financial information for fiscal year 2005 to December and 2006 to 31 July is based on the unaudited consolidated

accounts for DK Group. DK Group applies International Financial Reporting Standards (“IFRS”) as its accounting

standard. Ernst & Young is the Company’s auditor.

Table 19: P&L 2005 & 7 months to 31-Jul-06

Profit and Loss account (in EURk) Jan-Dec 2005 Jan-Jul 2006

Consolidated revenues 0 0

Consolidated operating expenses (825) (370)

Result from operations (825) (370)

Net financial income/(expense) (14) (1)

Result before taxation (839) (372)

Profit tax (1) (0)

Result after taxation (839) (372)

Source: DK Group

DK Group has not generated any third party revenue to date, and operating expenses comprise technology and product

development as well as general and administrative expenses. The Company has not filed its tax returns for calendar

year 2005. DK Group expects to have a small not material tax asset from tax loss carry forwards since inception.

Table 20: Balance Sheet as at 31-Jul-06

Assets (in EURk)

Intangible assets 2,347 Share Capital 18

Tangible assets 0 Share Premium 3,133

Total fixed assets 2,347 Cummulated profit (1,596)

Total shareholdes' equity 1,556

Recivables and prepayments 39

Cash at bank 53 Accrued liabilities 884

Total current assets 93 Total current liabilities 884

Total assets 2,440 Total shareholders' equity and liabilities 2,440

Equity and Liabilities (in EURk)

Source: DK Group

The Company’s main asset comprises its patent families pending, highlighting that the total paid in capital of EUR

3,125k has predominantly be applied to research and development.

Table 21: Net debt as at 31-Jul-06 Table 22: Net working capital as at 31-Jul-06

Net debt schedule (in EURk)

Interst bearing liabilities 0

Cash at bank (53)

Net debt/(net cash) (53)

Net working capital schedule (in EURk)

Recivables and prepayments 39

Total current liabilities (884)

Net working capital (845)


As at 31-Jul-06 DK Group had a net cash balance of EUR 53k and its net working capital (“NWC”) balance was

negative EUR 845k. Accordingly, DK Group requires EUR 791k as at 31-Jul-06 to finance its NWC net of its net cash

balance.



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12.2. Forecasting methodology and fundamental assumptions

DK Group has developed a detailed bottom-up financial model to describe the Company’s financial development in

detail. The order contracting and financial forecasts are made on a monthly basis for the period from Oct-06 to Dec-09

(Phase I) and on a yearly basis for the fiscal years 2010 to 2015 (Phase II).

Given the significant impact from the roll-out of one individual vessel class, revenue and capital expenditure forecasts

are made for each class separately.

The USD/EUR exchange rate is assumed to be 0.785 throughout the forecast period.

12.3. Conservative approach

Acknowledging the uncertainty in quantifying DK Group’s market opportunity and the fact that no financial model is

better than its input data, DK Group has looked to apply reasonable and conservative assumptions. This implies that

deviations are more likely to be on the positive side. Examples of this conservative approach include:

! New build commercial vessel contract market size is assumed to only 900 units in 2008, c.f. Table 2 on page

11

! Only the LPG/LNG unit market is expected to grow from 2008-2015, whereas tanker, container and bulker

vessel unit markets are kept flat at conservative levels throughout the forecast period

! DK Group assumes market entry of an “ACS-copycat” in 2012 who will capture 25% of the ACS market by

2015

! After launching a ship and successful proof-of-concept of DK Group’s ACS design, the Company estimates to

capture only 25% of the new build market in the following first full year

! DK Group assumes revenue model based on 1% royalty fee of new build price throughout the forecast period,

while a higher fee level also supports a strong investment case for the ship owner

! No signing of orders/contracting while the four “test” order vessels are being constructed

! Payment terms of 30 days for accounts receivable throughout the forecast period in an industry with payment

on milestone date (contracting, steel-cutting, keel-laying, launch, delivery)

12.4. Road to profitability – Phase I monthly cash flow budget to Dec-09

Figure 26, below shows the monthly revenue forecast and net cash flow generation by DK Group from Oct-06 to Dec-

09. The figure illustrates that the Company expects to start generating monthly positive free cash flow from the

beginning/middle of 2009. This section describes the underlying assumptions supporting these revenue and cash flow

streams.

Figure 26: Monthly revenue and free cash flow generation to Dec-09

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09

EU

Rm

DK Group revenue

Free cash flow

Source: DK Group

Note: Free cash flow defined as EBITDA less tax on EBIT less change in net working capital less Capex

12.4.1. Phase I revenue forecast – Oct-06 – Dec-09

Following the expected completion of DK Group’s basic design of an Aframax tanker in Oct-07, the Company expects

to sign its first contract in the same month, and then its second contract in Nov-07. DK Group conservatively expects



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these two initial “test” orders to comprise the entire revenue generation from the Aframax class in 2007 and 2008. The

two Aframax tankers are expected to be delivered in Nov-08 and Dec-08, respectively.

The two initial “test” orders for 8,000 TEU container ships are expected to be signed in Feb-08 and Mar-08, giving DK

Group two months to win the first contract, following the completion of the 8,000 TEU container ship basic design.

Delivery of these vessels is expected in Mar-09 and Apr-09, respectively.

Proof-of-concept for DK Group’s design is predominantly secured in the testing period between launch and delivery;

however, commercial use of the appropriate vessels is the ultimate proof-of-concept.

While the “test” vessels are being built, and DK Group is awaiting proof-of-concept, the Company plans to proceed

with the development of two additional basic designs for a VLCC tanker and a 10,000 TEU container ship. This way

DK Group is in a position to commence marketing and start selling additional designs as soon the proof-of-concept has

been delivered for the “test” vessels.

As illustrated in Figure 27, above the first wave of regular orders is expected to commence shortly after delivery of

the first vessels. Contracting for Aframax and VLCC is expected to commence in Jan-09 and Feb-09, respectively, and

the Company expects to contract 17 Aframax tankers and nine VLCC tankers throughout 2009. Similarly, the second

wave of orders for container vessels is expected to commence in May-09. DK Group estimates that they will contract

four 8,000 TEU and four 10,000 TEU container ship orders in 2009. The revenue streams from the four vessel classes

in Phase I are illustrated in Figure 28, above.

12.4.2. Phase I operational and capital expenditure

DK Group’s lean cost structure business model has limited employees and is focused on outsourcing of non-core work

streams. This strategy aims to secure limited overhead and a targeted allocation of funds to value generation purposes

such as development of new basic designs, direct sales and the building of sales channels. Figure 29, below illustrates

DK Group’s forecast operational expenditure (“Opex”) and capital expenditure (“Capex”).

The figure shows how funds are allocated to developing the two first basic designs until Dec-07, then commencing the

process of developing the next two designs in Jan-08, while the “test” orders are being built. 2009 is focused on sales

and marketing with no new basic design packages being developed. The total Capex through to 2009 is forecast at EUR

9.6 million.

Figure 27: ACS vessels on order to Dec-09 Figure 28: Monthly revenues to Dec-09

0

5

10

15

20

25

30

35

40

Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09

# V

esse

ls i

n p

rod

uct

ion 10,000 TEU

VLCC (300,000 dwt)

8,000 TEU

Aframax (115,000 dwt)

-

0.5

1.0

1.5

2.0

2.5

Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09

EU

Rm 10,000 TEU

VLCC (300,000 dwt)

8,000 TEU


Source: DK Group



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Figure 29: Monthly Opex and Capex to Dec-09

-

0.2

0.4

0.6

0.8

1.0

1.2

Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09

EU

Rm

CAPEX

R&D and

technical

General &

administrative

Sales and

marketing

Cost of sales

Source: DK Group

Total Opex from Oct-06 to Dec-09 is forecast at EUR 8.8 million, of which R&D and technical support comprises EUR

1.7 million, G&A EUR 3.6 million, sales and marketing EUR 3.0 million, and cost of sales sum up to EUR 0.5 million.

12.5. Financial forecast – Annual assumptions to 2015

12.5.1. Forecast new build activity 2010-2015

The forecast applicable market size is conservatively estimated by assuming a total new order activity around 900

vessels in 2008 growing slightly to approx. 920 vessels in 2015. The only vessel segment with a forecast growth is the

LNG/LPG market that expects to grow from 50 orders in 2008 to 70 orders in 2015. Orders for the remaining vessel

categories are kept constant in unit terms.

The market forecast does, however, include the migration trend in shipping towards larger vessels within each vessel

category. Additionally, the unit prices outlined in Figure 9 on page 21 are forecast to grow with an inflation of 2.5%.



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Figure 30: Forecast target market forecast (value and unit size), 2006-2015

17 18 18 18 19 19 20 20 21 21

711

7 8 9 9 10 11 12 1315

1616 17 18 19 20 21 21 239

89

9 1010

1111

1212

4853

5053

5558

6063

6569

-

10

20

30

40

50

60

70

80

2006A 2007A 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E

EU

Rb

n

Bulker

Container

LNG/LPG

Tanker

365 366 351 351 351 350 350 350 350 350

47 8250 53 56 59 62 65 68 71

268264

250 251 249 249 250 251 248 251

257 213250 250 249 251 250 249 250 251

937 925 901 905 905 909 912 915 916 923

-

100

200

300

400

500

600

700

800

900

1,000

2006A 2007A 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E

# u

nit

s

Bulker

Container

LNG/LPG

Tanker

Source: Maersk Brokers for 2006A and 2007A, DK Group for 2008E-2015E

Note: 2006A and 2007A are based on current order books, whereas 2008E-2015E are based on DK Group estimates.

12.5.2. Revenue forecast 2010-2015

DK Group has applied one general market share penetration assumption for ACS for all vessel class. When a basic

design has been completed in the beginning of/prior to the beginning of a year, a new order market share of 25% is

assumed for that year. This market share grows to 50% in year two and to 75% in year three and subsequent years.

Given the industry changing effect of DK Group’s ACS design, the Company also forecast that a “copycat” (none have

been identified to date c.f. chapter 7, on page 26) will enter the market. Accordingly, DK Group moderately forecast to

only take 95% of the ACS market in 2012, 90% in 2013 and 80% and 75% in 2014 and 2015, respectively.



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Figure 31: Forecast DK Group-unit orders by vessel class, 2007-2015

2 2

34

95

242

422

551 549

519

-

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015

# o

f v

esse

ls Handymax (Bulker)

Panamax (Bulker)

Capesize (Bulker)

VLBC (Bulker)

1,700 - 3,000 TEU

3,500 TEU

5,500 TEU

7,000 TEU

8,000 TEU

10,000 TEU

12,000 TEU

LPG (82,000 cmb)

LNG (154.000 cbm)

Handymax (45,000 dwt)

Panamax (70,000 dwt)


Suezmax (160,000 dwt)

VLCC (300,000 dwt)

Source: DK Group

Figure 31, illustrates DK Groups forecast order intake to 2015 including both phase I and phase II orders. The decline

in 2015 is a function of expected competition from a “copycat”.

Figure 32: Revenue forecast by vessel type, 2007-2015

2957

86111 123 122

-

10

33

5871 72

14

32

72

112

129 128

6

24

47

65

69 68

9

410

49

123

238

345

392 390

213

-

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015

EU

Rm

Bulker

Container

LNG / LPG

Tanker

Source: DK Group

Based on this order forecast, Figure 32, above illustrates that revenue is expected to reach approx. EUR 390 million in

2015.

12.5.3. EBITDA, cost of sales forecast, 2007-2015

Figure 33 outlines the forecast development in EBITDA, cost of sales margin % and EBITDA margin % for the period

from 2007 – 2015. The Company expects to turn EBITDA and cash flow positive by 2009 and to reach an EBITDA

margin above 90% by 2011. In 2015, DK Group is forecast to generate EUR 369 million in EBITDA and has a long-

term target EBITDA margin of around 95%.



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Figure 33: EBITDA and EBITDA margin forecast, 2007-2015

9

114

224

328

372 369

44

3.9% 3.0% 2.9% 2.3% 3.7%3.6%3.5%3.4%

3.5%

95%95%95%

94%93%89%

69%

-

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015

EU

Rm

-25%

0%

25%

50%

75%

100%EBITDA

Cost of sales as % of sales

EBITDA margin %

Source: DK Group

Cost of sales is driven by the cost of ship inspectors. In phase I the Company plans to outsource the ship inspection

function, while in-house inspectors are planned to be hired from 2010 onwards. The in-house ship inspector work force

is expected to grow to 110 by 2014 and then decrease to 107 in 2015.

12.5.4. SG&A forecast, 2007-2015

The sharp decline in SG&A as % of sales is a function of DK Group’s lean cost structure and scalable revenue model of

selling intellectual property rights at high unit prices.

SG&A is expected to grow by a CAGR of 70.6% from 2006-2010 and then by CAGR 8.5% from 2010-2015. This is

driven by a work force growth from 4 in 2006 to 139 in 2015. The sales and marketing department (“S&M”) is

expected to comprise of 5 employees in 2010, which should sufficient to cover the target c. 30 major ship owners and

target c. 25 major target shipyards involved in approx. 80% of all relevant global new vessel building activities.

Additional contracts are expected sourced through relationships with shipbrokers.

Figure 34: SG&A forecast, 2006-2015

0.10.7 1.0 1.3

1.6 1.8 2.1 2.3 2.6 2.7

0.3

0.9

1.21.5

1.71.9

2.02.2

2.32.4

0.3

0.5

0.8

1.01.0

1.11.1

1.21.2

1.9

2.8

3.6

4.2

4.6

5.25.6

6.06.4

0.1

0.5

123%

28%

9%4% 2% 2% 2% 2%-

1

2

3

4

5

6

7

8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EU

Rm

0%

25%

50%

75%

100%

125%

150%

% o

f sa

les

R&D and

tech

G & A

S & M

SG&A % of

sales

Source: DK Group

12.5.5. Group taxation

DK Group’s legal structure ensures an overall consolidated tax rate of approximately 5%. The Company is unable to

guarantee that this tax structure is sustainable in the long term. If, for instance, for whatever reason, the Company in the

future were to be taxed as a Danish tax resident, the equivalent tax rate would be 28%.



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12.5.6. Capital expenditure forecast, 2007-2015

DK Group has taken a vessel-class by vessel-class approach to the Capex forecast for the development of basic design

packages to 2011. Figure 35, illustrates the Capex forecast 2006-2015. The two first design packages are planned to be

developed in 2006-2007 and completed in 2007, while future designs are expected to be completed in the year the

development process is initiated. This approach has been applied to cover the development of 18 identified different

basic design packages with additional funds allocated to cover additional “improvement” tests to developed designs.

Five basic designs have been budgeted for through 2009 and Capex for seven basic designs is allocated for 2010. Six

basic designs are planned to be developed in 2011 and additional EUR 3 million of design capex has been allocated for

that year. Over EUR 15.7 million has been allocated to Capex in 2012 and this figure is forecast to grow by 10%

annually.

Figure 35: Capital expenditure forecast, 2006-2015

-

4.7

3.2

1.7

11.7

13.2

15.7

17.2

19.0

20.9

2 2 2

7

6

- - - -

1

-

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EU

Rm

-

1

2

3

4

5

6

7

8

# B

asic

des

ign

Total capital expenditures

Total # of identified basic

designs in progress

Source: DK Group

12.5.7. Working capital forecast, 2007-2015

Net working capital (“NWC”) is defined as accounts receivables (“AR”) plus inventories less accounts payable (“AP”).

DK Group has applied a conservative approach to working capital forecasting. Accounts receivables are assumed to be

outstanding for 30 days, despite the industry standard that payment is made to shipyards and shipbrokers on the day of

reaching one of the five building milestones. Accounts payable is assumed to be 30 days throughout the forecast

period.

Figure 36: Net working capital forecast, 2007-2015

(0.0) 0.32.0

2.8

9.7

18.9

27.4

31.1 30.9

(5)

-

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012 2013 2014 2015

EU

Rm

AP

AR

NWC

Source: DK Group

The major working capital item is AR, which is expected to tie EUR 2.0 million of capital in 2009, growing to EUR

32.0 million in 2015. The Company is highly focused on optimising the payment terms in both the short- and long-

term. Accordingly, the capital tied in NWC in 2005 is projected to be EUR 30.9 million.

12.5.8. DK Group summary financial statements, 2007-2015

Based on the above forecasting principles and assumptions, DK Group is envisaging the following financial

development to 2015 as shown in Table 23 and Table 24.



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Table 23: Summary income statement 2006 to 2015

Income statement (EURm) FYE

to Dec2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total revenues - 0.2 2.2 12.9 48.9 123.1 237.6 345.0 392.3 389.7

Total cost of sales - (0.0) (0.1) (0.4) (1.1) (4.4) (8.1) (11.9) (14.0) (14.3)

Gross profit - 0.2 2.2 12.5 47.8 118.7 229.5 333.1 378.3 375.4

Total SG&A (0.5) (1.9) (2.8) (3.6) (4.2) (4.6) (5.2) (5.6) (6.0) (6.4)

EBITDA (0.5) (1.7) (0.6) 8.9 43.5 114.1 224.3 327.5 372.3 369.1

Depreciation - (0.3) (0.4) (0.5) (1.1) (1.8) (2.6) (3.5) (4.4) (5.5)

EBIT (0.5) (2.0) (1.0) 8.4 42.4 112.3 221.7 324.1 367.9 363.6

Cash tax on EBIT at 5% - - - (0.2) (2.1) (5.6) (11.1) (16.2) (18.4) (18.2)

Net profit (0.5) (2.0) (1.0) 8.2 40.3 106.7 210.6 307.9 349.5 345.4

Key financial ratios

Sales growth 996% 476% 280% 152% 93% 45% 14% -0.7%

EBITDA margin % -26% 69% 89% 93% 94% 95% 95% 95%

EBIT Margin % -45% 65% 87% 91% 93% 94% 94% 93%

Net profit margin % -45% 63% 82% 87% 89% 89% 89% 89%

Source: DK Group

12.5.9. Estimated financing requirement, 2007-2015

Based on the above detailed forecast, the table below outlines DK Group’s estimated pure equity financing requirement.

The negative cash flow in 2006, 2007 and 2008 totals EUR 11.0 million at year end 2008. The monthly cash flow

analysis shows a cumulated pure equity financing requirement of EUR 11.2 million to Mar-09. Wit a net debt and

NWC balance of EUR 0.8m, outlined on page 35, the total equity financing requirement amounts to EUR 12.0m.

Table 24: Summary cash flow statement 2006 to 2015

Cash flow statement (EURm)

FYE to Dec2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total revenues - 0.2 2.2 12.9 48.9 123.1 237.6 345.0 392.3 389.7

EBITDA (0.5) (1.7) (0.6) 8.9 43.5 114.1 224.3 327.5 372.3 369.1

Cash tax on EBIT at 5% - - - (0.2) (2.1) (5.6) (11.1) (16.2) (18.4) (18.2)

Cash flow from NWC - 0.0 (0.3) (1.7) (0.8) (6.9) (9.1) (8.5) (3.7) 0.2

Total Capex - (4.7) (3.2) (1.7) (11.7) (13.2) (15.7) (17.2) (19.0) (20.9)

Free cash flow (0.5) (6.5) (4.1) 5.3 28.9 88.3 188.4 285.6 331.2 330.3

Cumulative cash flow (0.5) (7.0) (11.0) (5.7) 23.2 111.6 300.0 585.5 916.7 1,247.0

Source: DK Group

To address and allow sufficient margin for potential forecasting inadequacies, DK Group acknowledges the need for a

certain margin of error and consequently aims to raise gross proceeds of EUR 15.0 million to be able to cover such

contingencies.



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Table of figures

Figure 1: DK Group legal corporate structure ................................................................................................................. 10

Figure 2: Shipbuilding process - standard vessel (12-18 months) ................................................................................... 13

Figure 3: Market share of classification companies, vessels on order globally ............................................................... 14

Figure 4: Nominal bunker fuel prices 2000-2010 (USD per ton) .................................................................................... 15

Figure 5: CO2 emission prices in USD per ton ................................................................................................................ 16

Figure 6: Steel plate price development 2001-06 (USD per ton).................................................................................... 17

Figure 7: Overviews of the DK Group’s ACS................................................................................................................. 18

Figure 8: Schematics of DK Group’s ACS air supply system for an Aframax tanker..................................................... 18

Figure 9: 2006 prices in USDm for identified target vessels ........................................................................................... 21

Figure 10: Standard payment terms in the shipbuilding industry .................................................................................... 21

Figure 11: Annual net savings using ACS for Aframax, VLCC and Container 8,000 TEU............................................ 23

Figure 12: Schematics of DK Group’s ACS hull plating requirements ........................................................................... 23

Figure 13: Payback period in two scenarios – Aframax, VLCC and Container 8,000 TEU............................................ 24

Figure 14: IRR% in two scenarios – Aframax, VLCC and Container 8,000 TEU .......................................................... 25

Figure 15: DK Group’s low speed ACS model of an Aframax/VLCC/bulk vessel......................................................... 27

Figure 16: DK Group’s high speed ACS model of a RoPax............................................................................................ 27

Figure 17: Aframax Tanker Modified for ACS ............................................................................................................... 28

Figure 18: Resistance improvements: Aframax.............................................................................................................. 28

Figure 19: VLCC Tanker Modified for ACS................................................................................................................... 28

Figure 20: Resistance improvements: VLCC ................................................................................................................. 28

Figure 21: 8,000 TEU Container Ship with ACS ............................................................................................................ 29

Figure 22: Resistance improvements: Container ............................................................................................................ 29

Figure 23: LNG Tanker Modified for ACS ..................................................................................................................... 29

Figure 24: Predicted HFO saving per day........................................................................................................................ 29

Figure 25: Company organisational structure.................................................................................................................. 33

Figure 26: Monthly revenue and free cash flow generation to Dec-09............................................................................ 36

Figure 27: ACS vessels on order to Dec-09..................................................................................................................... 37

Figure 28: Monthly revenues to Dec-09 ......................................................................................................................... 37

Figure 29: Monthly Opex and Capex to Dec-09.............................................................................................................. 38

Figure 30: Forecast target market forecast (value and unit size), 2006-2015 .................................................................. 39

Figure 31: Forecast DK Group-unit orders by vessel class, 2007-2015 .......................................................................... 40

Figure 32: Revenue forecast by vessel type, 2007-2015.................................................................................................. 40

Figure 33: EBITDA and EBITDA margin forecast, 2007-2015...................................................................................... 41

Figure 34: SG&A forecast, 2006-2015............................................................................................................................ 41

Figure 35: Capital expenditure forecast, 2006-2015........................................................................................................ 42

Figure 36: Net working capital forecast, 2007-2015 ....................................................................................................... 42



Indices

of 76

Table of tables

Table 1: Summary financial forecast, 2006-2015.............................................................................................................. 8

Table 2: Number of ships above 175 m in current global order books (delivery dates) .................................................. 11

Table 3: Market value of ships above 175 m in current global order books(1) (delivery dates) ....................................... 12

Table 4: Tank testing for vessels ..................................................................................................................................... 14

Table 5: Parameters to increase transport efficiency ....................................................................................................... 15

Table 6: Bunker cost as pct. of vessel Opex .................................................................................................................... 15

Table 7: SECAS areas ..................................................................................................................................................... 16

Table 8: Superior transport efficiency of DK Group's ACS ............................................................................................ 19

Table 9: Additional operational strengths of DK Group's ACS design ........................................................................... 19

Table 10: Development milestones and time to "Basic design" ...................................................................................... 22

Table 11: Investment and operation effects of applying DK Group's ACS ..................................................................... 22

Table 12: Marginal initial vessel investment cost analysis for an 8,000 TEU container ................................................. 23

Table 13: Marginal initial vessel investment cost analysis for a 115.000 dwt Aframax tanker....................................... 24

Table 14: Competing technologies to DK Group's ACS ................................................................................................. 26

Table 15: Overview of DK Group's tank test results ....................................................................................................... 27

Table 16: Largest identified ship owners and shipyards.................................................................................................. 30

Table 17: DK Group's patent families ............................................................................................................................. 32

Table 18: DK Group’s shareholders ................................................................................................................................ 34

Table 19: P&L 2005 & 7 months to 31-Jul-06 ................................................................................................................. 35

Table 20: Balance Sheet as at 31-Jul-06 .......................................................................................................................... 35

Table 21: Net debt as at 31-Jul-06 .................................................................................................................................... 35

Table 22: Net working capital as at 31-Jul-06 .................................................................................................................. 35

Table 23: Summary income statement 2006 to 2015....................................................................................................... 43

Table 24: Summary cash flow statement 2006 to 2015 ................................................................................................... 43



Appendices

of 76

Appendices



Appendices

of 76

Appendix A: Investment case studies per vessel class for a ship owner



Appendices

of 76

Appendix A I: DK Group's ACS - Vessel investment case summary: Aframax - 115,000 dwt DK Group's ACS - Vessel investment case summary

Payback period analysis

(in USD) Scenario I Scenario II

Additional hull cost to apply DK Group's ACS 1,750,000 1,750,000 DK Group's ACS Compressor/piping

(3)350,000 350,000

Reduced engine requirement due to DK Group's ACS (375,000) (375,000)

Royalty payment to DK Group 651,500 651,500

Total marginal building cost for DK Group's ACS 2,376,500 2,376,500

Net annual savings from reduced bunker/fuel consumption (2006 prices) 495,932 495,932

Annual savings from reduced CO2 emission 106,498 Payback period in years 4.8 3.9

IRR analysis - Scenario I: Bunker/fuel savings only (vessel life of 20 Years)

(in USD) 2006 2007 2008 2009 2026

Initial investment / additional scrap value (2,376,500) -

Annual bunker savings at forecast bunker prices 506,566 455,517 463,371 658,729

Projected cash flows from investment in DK Group's ACS (2,376,500) 506,566 455,517 463,371 658,729

IRR from investment in DK Group's ACS 20%

NPV of investment in DK Group's ACS at 10.0% discount rate 1,741,432

IRR analysis - Scenario II: Bunker/fuel savings + CO2 emission tax savings

(in USD) 2006 2007 2008 2009 2026


Annual bunker savings at forecast bunker prices 506,566 455,517 463,371 658,729

Annual CO2 savings at constant certificate price 106,498 106,498 106,498 106,498

Projected cash flows from investment in DK Group's ACS (2,376,500) 613,065 562,016 569,869 765,228



DK Group's ACS - Operational analysis: Bunker and CO2 savings

Fuel/bunker savings potential

Net savings (USD)

Metric tons in % Per day Annually

Standard bunker/fuel consumption per day(2)

58.6 100.0%

% ACS savings (5.9) (10.0%)

Consumption before compressor power use 52.7 90.0%

Compressor power use 0.5 1.0%Net bunker/fuel consumption savings from DK Group's ACS (5.3) 9.1% 1,600 495,932

CO2 emission tax savings potential

Net savings (USD)


Standard CO2 emission per day(1)

188.8 100.0%Net emission reduction from DK Group's ACS 17.2 9.1% 344 106,498

DK Group's ACS - Marginal initial vessel investment cost and resale analyses

Marginal initial vessel investment cost analysis


Standard new build 63,425,000 100.0% 16,000 100.0%

Additional hull cost to apply DK Group's ACS 1,750,000 2.8% 700 4.4%

DK Group's ACS Compressor/piping(3)

350,000 0.6%


Total construction cost 65,150,000 102.7% 16,700 104.4%

Royalty payment to DK Group 1% 651,500 1.0%


Vessel resale value after 20 years 20

(In USD) USD % of new price

Standard resale value 32,900,750 50%

Estimated increase due to DK Group's ACS 0 0%

Estimated resale value of DK Group's ACS 32,900,750 50%

NPV of increase at 10.0% discount rate 0

DK Group's ACS - Key analysis assumptions

Welded steel USD/metric ton 2,500 Vessel specifics

Installed engine package price in USD 7,500,000 Year contracted 2006

Savings from reduced engine requirements due to DK Group's ACS 5% Length (meters) 245

Active sailing days per year 310 Ship capacity (metric tons) 115,000

DK Grooup's ACS bunker consumption saving 10%

SMCR Power in KWh(2)

14,300 CO2 emission USD/ton 20

CO2 emission gram per KWh 550

Bunker price forecast (IFO 380) USD/metric ton 2006 2007 2008 2009 2026

Estimated bunker/fuel prices 300 306.4 275.6 280.3 398

Inflation 2.5%

Discount rate 10%

(1) CO 2 emission computation formula: SMCR power use*CO2 emission per KWh*24 hours/1,000,000 (grams per ton)

(2) Source: MAN B&W Diesel, 2006: average speed of knots 15.0

(3) Source: Atlas Copco



Appendices

of 76

Appendix A II: DK Group's ACS - Vessel investment case summary: Container 8,000 TEU DK Group's ACS - Vessel investment case summary




(3)350,000 350,000


Royalty payment to DK Group 1,241,100 1,241,100





(in USD) 2006 2007 2008 2009 2026


Annual bunker savings at forecast bunker prices 970,627 872,812 887,860 1,262,185

Projected cash flows from investment in DK Group's ACS (2,351,100) 970,627 872,812 887,860 1,262,185




(in USD) 2006 2007 2008 2009 2026




Projected cash flows from investment in DK Group's ACS (2,351,100) 1,194,734 1,096,919 1,111,967 1,486,292





Net savings (USD)



250.0 100.0%

% ACS savings (12.5) (5.0%)




Net savings (USD)


Standard CO2 emission per day(1) 884.4 100.0%Net emission reduction from DK Group's ACS 40.0 4.5% 800 224,107







350,000 0.3%







Standard resale value 62,675,550 50.0%

Estimated increase due to DK Group's ACS 0 0.0%

Estimated resale value of DK Group's ACS 62,675,550 50.0%






Active sailing days per year 280 Ship capacity (TEU) 8,000







Inflation 2.5%

Discount rate 10%






Appendices

of 76

Appendix A III: DK Group's ACS - Vessel investment case summary: VLCC - 300,000 dwt DK Group's ACS - Vessel investment case summary




(3)350,000 350,000


Royalty payment to DK Group 1,229,250 1,229,250





(in USD) 2006 2007 2008 2009 2026



Projected cash flows from investment in DK Group's ACS (3,154,250) 918,908 826,305 840,552 1,194,931




(in USD) 2006 2007 2008 2009 2026




Projected cash flows from investment in DK Group's ACS (3,154,250) 1,111,797 1,019,194 1,033,440 1,387,819





Net savings (USD)



106.3 100.0%

% ACS savings (10.6) (10.0%)




Net savings (USD)


Standard CO2 emission per day(1) 341.9 100.0%Net emission reduction from DK Group's ACS 31.1 9.1% 622 192,889







350,000 0.3%







Standard resale value 62,077,125 50.0%

Estimated increase due to DK Group's ACS 0 0.0%

Estimated resale value of DK Group's ACS 62,077,125 50.0%






Active sailing days per year 310 Ship capacity (metric tons) 300,000







Inflation 2.5%

Discount rate 10%





Confidential Information Memorandum Confidential Information Memorandum Appendices

of 76

Appendix B: Impact of DK Group’s ACS on global CO2 emission – environmentally and financially Potential for reduction of CO2 emission from DK Group's ACS - environmentally and financially

(In tons) Size of SMCR Active CO2 emission Reduction CO2 emission reduct. potential Value of reduction (USDk)

global Power Saling Vessel Fleet potential Vessel Global fleet Vessel Global fleet

Vessel types fleet (#) use days Day Day Year from ACS Day Year Day Year Day Year Day Year

Tankers(1)

VLCC/ULCC 482 25,525 310 337 162,400 50,344,081 10% 34 10,445 16,240 5,034,408 0.7 209 325 100,688

Suezmax 345 16,000 310 211 72,864 22,587,840 10% 21 6,547 7,286 2,258,784 0.4 131 146 45,176

Aframax 692 13,333 310 176 121,789 37,754,576 10% 18 5,456 12,179 3,775,458 0.4 109 244 75,509

Panamax 292 10,450 310 138 40,278 12,486,329 10% 14 4,276 4,028 1,248,633 0.3 86 81 24,973

Handymax 788 8,950 310 118 93,094 28,859,239 10% 12 3,662 9,309 2,885,924 0.2 73 186 57,718

Bulkers

Capesize 687 13,942 310 184 126,432 39,193,806 10% 18 5,705 12,643 3,919,381 0.4 114 253 78,388

Panamax 1,356 10,273 310 136 183,878 57,002,329 10% 14 4,204 18,388 5,700,233 0.3 84 368 114,005

Handymax 1,458 7,915 310 104 152,329 47,221,966 10% 10 3,239 15,233 4,722,197 0.2 65 305 94,444

Containers

Post Panamax(2)

444 53,800 280 710 315,311 88,287,091 5% 36 9,942 15,766 4,414,355 0.7 199 315 88,287

Panamax 613 36,100 280 477 292,107 81,789,893 5% 24 6,671 14,605 4,089,495 0.5 133 292 81,790

Sub-Panamax 602 17,300 280 228 137,473 38,492,362 5% 11 3,197 6,874 1,924,618 0.2 64 137 38,492

Total 504,019,512 132,551 39,973,484 2,651 799,470

Notes

(1) Tankers include LNG/LPG vessels

(2) 5,000 TEU applied as a conservative average for the Post Panamax market


(4) Fuel/Bunker type IFO 380

(5) CO 2 certificate price per ton (USD) 20

(6) CO 2 emission per KWh 550 g

Source: Maersk Broker, Aug-06; MAN B&W Diesel, 2006; DK Group



Appendices

of 76

Appendix C: Patent statement - Nederlandsch Octrooibureau



Appendices

of 76

Appendix D: Classification statement - Germanischer Lloyd



Appendices

of 77

Appendix E: Technical statement - Knud E. Hansen


KNUD E. HANsEN A'S

NAVAL ARCHITECTS. DESIGNERS. MARINE ENGINEERS

TO WHOM IT MA y CONCERN 2006.10.03

Corr.01/FWP.ela

Re.: DK Group's and Knud E. Hansen A/S' co-operation

I would like to confirm that DK Group and Knud E. Hansen NS have been co-operating on

Air Cavity System for nearly 4 years.

We believe that the system can reduce fuel consumption on ships, if correctly implemented,

and that it is an interesting business concept especially in a world with increasing oil prices.

The common work during these years has shown that the Air Cavity System is a way to go

in order to reduce fuel consumption on vessels, and as a consequence also create more

environmental friendly vessels.

Knud E. Hansen NS has acted as naval architect consultant and has also produced a

complete concept design of an AFRAMAX tanker for DK Group. We have also undertaken

pre-studies for various other vessel types.

Another important work stream has been tank testing of vessels with Air Cavity System,

which has been done at both Force Technologies in Copenhagen and at HVSA in Hamburg.

These tests have yielded significant information and know-how regarding DK Group's Air

Cavity System and its application on various vessel types.

Specifically, our co-operation has resulted in an order from the German ship-owner

Reederei PHOENIX GmbH where we have designed a 10,000 row Arctic Multi-Purpose

Vessel for use in arctic areas.

The common work undertaken by DK Group and Knud E. Hansen AlS supports a business

case with significant potential, especially in a world with focus on environmentally friendly

energy us~,~nd savings. In particular we would like to highlight Air Cavity System's

reduction of CO2 emission from propulsion.

To develop the technology, additional tests and tank testing are needed. Also

further development of the vessel design has to be performed in order to lift various vessel

types from a pre-study stage into concept and finalized basic designs. Our goal has been to

have a resistance savings of 8 -12% and the tank tests undertaken have shown that this is

possible -in some cases the efficiency during testing is actually above these targets.

ISLANDS BRYGGE 41-43. DK-2300 COPENHAGEN S. DENMARK. PHONE: +4532831391 .FAX: +4532831394

[email protected] .WWW.KNUDEHANSEN.COM .MEMBER OF THE SEMCOM GROUP


~KN u D E. HANSEN A'S

NAVAL ARCHITECTS. DESIGNERS. MARINE ENGINEERS

An alternative application of the better efficiency of DK Group's Air Cavity System is to

increase the speed of the vessel, and consequently increase the service range of the vessel in

its lifetime.

Enclosed please find our company profile for your info, also please visit our homepage

www:KNUDEHANSEN .COM

If you have any questions or comments on the above, please do not hesitate to contact the

undersigned.

KNUD E. HANSEN A/S

~-11oSa.. 1/) ~ ~

Finn Wollesen Petersen

Managing DirectorDirect phone: (+45) 32 64 30 69SKYPE. FWP-KEH

e- mail: wollesen @ knudehansen.com

ISLANDS BRYGGE 41-43. DK-2300 COPENHAGEN S .DENMARK. PHONE: +4532831391 .FAX: +4532831394

[email protected] .WWW.KNUDEHANSEN.COM .MEMBER OF THE SEMCOM GROUP

2



Appendices

of 76

Appendix F: Tank test scaling results – HSVA (Hamburgische Schiffbau-

Versuchsanstalt) + Knud E. Hansen - Aframax with ACS


Islands Brygge 41, DK-2300 Copenhagen S, Denmark Telephone: +45 32 83 13 91, Fax: +45 32 83 13 94 www.knudehansen.com E-mail: [email protected]

March 2006 CHJ

HSVA Scaling Results

for

Aframax with ACS


05047.01.0510.01 November 2005

OLO/CHJ K N U D E . H A N S E N A / S Page 1

Principal Dimensions

Length overall. abt. 244,00 m

Length between p.p. 244,00 m

Breadth, moulded 45,32 m

Depth moulded 21,00 m

Design draught 11,90 m

Gross Tonnage abt. 58.500

Deadweight

Deadweight all told on design draft to be (with air) 80.385 t

Design draft (with air) 11,90 m

Capacities

Heavy fuel oil abt. 2800 m!

Marine Diesel oil abt. 185 m!

Lubricating oil abt. 130 m!

Fresh water abt. 410 m!

Ballast water abt. 39.600 m!

Cargo Tanks

Cargo Tank No. 1 P+S abt. 13.740 m!






Slop Tanks P+S abt. 2.217 m!

Total number of tanks 14 abt 122.287 m!


March 2006

!"#$%&'%()"*&"%)+* KEH No. 03057.01

HSVA extrapolation of model scale results to full scale.

HSVA full-scale extrapolation

0

100

200

300

400

500

600

700

800

9.0 10.0 11.0 12.0 13.0 14.0 15.0

Speed (kn)

Po

wer

(kW

)

BASIS Aframax

ACS Aframax

Full scale results Standard ACS

Speed Pe(s) Pe(s) Saving

Kn kW kW %

Faired Faired

9.0 291 230 20.9

10.0 362 284 21.6

11.0 435 341 21.5

12.0 513 406 20.9

13.0 599 481 19.7

14.0 698 571 18.1

15.0 812 680 16.2

Main particulars of vessel: Vesseltype: Aframax Lpp: 244.00 m B: 45.32 m Draught: 11.85 m Disp: ~94,563 m3

Graph: Below graph shows the full scale data points, and the corresponding faired curve, according to HSVA extrapolation from model test data.


Diagramm Seite 1

Full Scale Prediction based on Model Test Data

DK Group Netherlands B.V. - AfraMax Project with ACS

0

200

400

600

800

1000

1200

8 10 12 14 16 18

VS [kts]

Rt S

[k

N]

Model 10-01 - Closed Cavity

Model 20-01 - Open Cavity 1

Model 40-01 - Open Cavity 2

LWL = 236.57 m

B = 45.32 m T = 11.85 m

Disp = 94,522 m!


Model 10-01, Closed Cavity

full Model For all Model 10-01, 20-01 and 40-01 following particulars are valid:Scale 33,3333 Lwl 236,57 mLwl 236,57 7,10 m B 45,32 mS 13141,6 11,83 T 11,85 mVisc 1,19E-06 1,14E-06 Disp m3Density 1025 1000

1+k 1,00Ca -1,55E-04

V(m) Fn Rt(m) Ct(m) Re(m) Cf(m) Cr V(s) V(s) Re(s) Cf(s) Ct(s) Rt(s)m/s N Knots m/s kN

2000 0,839 0,101 17,050 4,10E-03 5,22E+06 3,37E-03 7,28E-04 9,42 4,843 9,63E+08 1,54E-03 2,11E-03 333,412001 0,862 0,103 17,579 4,00E-03 5,37E+06 3,35E-03 6,45E-04 9,68 4,978 9,90E+08 1,53E-03 2,02E-03 337,692002 0,897 0,108 18,689 3,93E-03 5,59E+06 3,33E-03 5,98E-04 10,07 5,180 1,03E+09 1,53E-03 1,97E-03 355,622003 0,932 0,112 20,045 3,90E-03 5,80E+06 3,30E-03 5,95E-04 10,46 5,383 1,07E+09 1,52E-03 1,96E-03 381,992004 0,955 0,114 20,970 3,89E-03 5,95E+06 3,29E-03 5,97E-04 10,72 5,514 1,10E+09 1,51E-03 1,96E-03 400,422005 0,993 0,119 23,199 3,98E-03 6,18E+06 3,27E-03 7,12E-04 11,14 5,733 1,14E+09 1,51E-03 2,06E-03 456,572006 1,028 0,123 25,147 4,03E-03 6,40E+06 3,25E-03 7,79E-04 11,53 5,933 1,18E+09 1,50E-03 2,12E-03 503,612007 1,064 0,127 25,704 3,84E-03 6,62E+06 3,23E-03 6,16E-04 11,94 6,140 1,22E+09 1,49E-03 1,95E-03 496,212008 1,121 0,134 28,987 3,90E-03 6,98E+06 3,20E-03 7,02E-04 12,59 6,474 1,29E+09 1,48E-03 2,03E-03 573,192009 1,157 0,139 30,212 3,81E-03 7,21E+06 3,18E-03 6,35E-04 12,99 6,683 1,33E+09 1,48E-03 1,96E-03 588,902010 1,203 0,144 33,033 3,86E-03 7,49E+06 3,16E-03 7,02E-04 13,50 6,947 1,38E+09 1,47E-03 2,02E-03 655,872011 1,250 0,150 34,838 3,77E-03 7,78E+06 3,13E-03 6,34E-04 14,03 7,218 1,43E+09 1,46E-03 1,94E-03 681,8820122013 1,343 0,161 40,960 3,84E-03 8,36E+06 3,10E-03 7,47E-04 15,07 7,752 1,54E+09 1,45E-03 2,04E-03 826,912014 1,424 0,171 46,338 3,86E-03 8,87E+06 3,06E-03 7,98E-04 15,99 8,224 1,63E+09 1,44E-03 2,08E-03 949,48

94522

Model 10-01 Seite 2


Model 20-01, Open Cavity

full ModelScale 33,3333Lwl 236,57 7,10 mS 13141,6 11,83Visc 1,19E-06 1,14E-06Density 1025 10001+k 1,00 (measured 1.17)Ca -1,55E-04

V(m) Fn Rt(m) Ct(m) Cr Re(m) Cf(m) Cf(m)* V(s) V(s) Re(s) Cf(s) Cf(s)* Ct(s) Rt(s)m/s N Mod. 10-01 Knots m/s kN

2000 0,840 0,101 13,058 3,13E-03 7,28E-04 5,23E+06 3,37E-03 2,40E-03 9,43 4,85 9,64E+08 1,54E-03 1,10E-03 1,67E-03 264,392001 0,863 0,103 13,362 3,03E-03 6,45E-04 5,37E+06 3,35E-03 2,39E-03 9,69 4,98 9,90E+08 1,53E-03 1,09E-03 1,58E-03 264,562002 0,898 0,108 14,161 2,97E-03 5,98E-04 5,59E+06 3,33E-03 2,37E-03 10,08 5,18 1,03E+09 1,52E-03 1,09E-03 1,53E-03 276,942003 0,933 0,112 15,044 2,92E-03 5,95E-04 5,81E+06 3,30E-03 2,33E-03 10,47 5,38 1,07E+09 1,52E-03 1,07E-03 1,51E-03 294,822004 0,957 0,115 16,482 3,04E-03 5,97E-04 5,96E+06 3,29E-03 2,44E-03 10,75 5,53 1,10E+09 1,51E-03 1,12E-03 1,57E-03 322,252005 0,993 0,119 17,909 3,07E-03 7,12E-04 6,18E+06 3,27E-03 2,36E-03 11,14 5,73 1,14E+09 1,51E-03 1,09E-03 1,65E-03 363,982006 1,028 0,123 18,792 3,01E-03 7,79E-04 6,40E+06 3,25E-03 2,23E-03 11,54 5,94 1,18E+09 1,50E-03 1,03E-03 1,65E-03 392,272007 1,077 0,129 20,587 3,00E-03 6,16E-04 6,71E+06 3,22E-03 2,38E-03 12,09 6,22 1,24E+09 1,49E-03 1,10E-03 1,56E-03 407,692008 1,106 0,133 21,041 2,91E-03 7,02E-04 6,88E+06 3,20E-03 2,21E-03 12,41 6,38 1,27E+09 1,49E-03 1,02E-03 1,57E-03 431,222009 1,168 0,140 24,326 3,02E-03 6,35E-04 7,27E+06 3,17E-03 2,38E-03 13,10 6,74 1,34E+09 1,48E-03 1,11E-03 1,59E-03 486,132010 1,195 0,143 25,572 3,03E-03 7,02E-04 7,44E+06 3,16E-03 2,32E-03 13,42 6,90 1,37E+09 1,47E-03 1,08E-03 1,63E-03 522,802011 1,259 0,151 28,387 3,03E-03 6,34E-04 7,84E+06 3,13E-03 2,39E-03 14,13 7,27 1,45E+09 1,46E-03 1,12E-03 1,60E-03 568,572012 1,294 0,155 30,545 3,08E-03 6,90E-04 8,06E+06 3,12E-03 2,39E-03 14,53 7,47 1,49E+09 1,46E-03 1,12E-03 1,65E-03 622,482013 1,341 0,161 32,536 3,06E-03 7,47E-04 8,35E+06 3,10E-03 2,31E-03 15,06 7,75 1,54E+09 1,45E-03 1,08E-03 1,68E-03 676,752014 1,429 0,171 39,122 3,24E-03 7,98E-04 8,89E+06 3,06E-03 2,44E-03 16,03 8,25 1,64E+09 1,44E-03 1,15E-03 1,79E-03 821,41

Model 20-01 Seite 3



full ModelScale 33,3333Lwl 236,57 7,10 mS 13141,6 11,83Visc 1,19E-06 1,14E-06Density 1025 10001+k 1,00 (measured 1.17)Ca -1,55E-04

V(m) Fn Rt(m) Ct(m) Cr Re(m) Cf(m) Cf(m)* V(s) V(s) Re(s) Cf(s) Cf(s)* Ct(s) Rt(s)m/s N Mod. 10-01 Knots m/s kN

2000 0,839 0,101 14,326 3,44E-03 7,28E-04 5,22E+06 3,37E-03 2,71E-03 9,42 4,84 9,63E+08 1,54E-03 1,24E-03 1,81E-03 286,232001 0,863 0,103 14,889 3,38E-03 6,45E-04 5,37E+06 3,35E-03 2,74E-03 9,68 4,98 9,90E+08 1,53E-03 1,25E-03 1,74E-03 291,032002 0,897 0,108 15,569 3,27E-03 5,98E-04 5,59E+06 3,33E-03 2,67E-03 10,07 5,18 1,03E+09 1,53E-03 1,22E-03 1,67E-03 301,362003 0,933 0,112 17,130 3,33E-03 5,95E-04 5,81E+06 3,30E-03 2,74E-03 10,47 5,38 1,07E+09 1,52E-03 1,26E-03 1,70E-03 331,182004 0,967 0,116 18,702 3,38E-03 5,97E-04 6,02E+06 3,28E-03 2,78E-03 10,86 5,58 1,11E+09 1,51E-03 1,28E-03 1,72E-03 361,902005 0,991 0,119 19,614 3,38E-03 7,12E-04 6,17E+06 3,27E-03 2,67E-03 11,12 5,72 1,14E+09 1,51E-03 1,23E-03 1,79E-03 393,552006 1,026 0,123 20,948 3,37E-03 7,79E-04 6,39E+06 3,25E-03 2,59E-03 11,51 5,92 1,18E+09 1,50E-03 1,20E-03 1,82E-03 429,722007 1,074 0,129 22,644 3,32E-03 6,16E-04 6,68E+06 3,22E-03 2,71E-03 12,05 6,20 1,23E+09 1,49E-03 1,25E-03 1,71E-03 443,472008 1,121 0,134 24,822 3,34E-03 7,02E-04 6,98E+06 3,20E-03 2,64E-03 12,58 6,47 1,29E+09 1,48E-03 1,22E-03 1,77E-03 499,742009 1,167 0,140 26,734 3,32E-03 6,35E-04 7,27E+06 3,17E-03 2,68E-03 13,10 6,74 1,34E+09 1,48E-03 1,25E-03 1,73E-03 528,642010 1,202 0,144 28,581 3,35E-03 7,02E-04 7,48E+06 3,16E-03 2,64E-03 13,49 6,94 1,38E+09 1,47E-03 1,23E-03 1,78E-03 576,912011 1,260 0,151 31,475 3,35E-03 6,34E-04 7,84E+06 3,13E-03 2,72E-03 14,14 7,28 1,45E+09 1,46E-03 1,27E-03 1,75E-03 623,462012 1,294 0,155 33,085 3,34E-03 6,90E-04 8,06E+06 3,12E-03 2,65E-03 14,53 7,47 1,49E+09 1,46E-03 1,24E-03 1,77E-03 667,612013 1,343 0,161 35,028 3,28E-03 7,47E-04 8,36E+06 3,10E-03 2,54E-03 15,08 7,76 1,54E+09 1,45E-03 1,19E-03 1,78E-03 721,41

Model 40-01 Seite 4



Appendices

of 76

Appendix G: Tank test scaling results – HSVA (Hamburgische Schiffbau-

Versuchsanstalt) + Knud E. Hansen - VLCC with ACS


Islands Brygge 41, DK-2300 Copenhagen S, Denmark Telephone: +45 32 83 13 91, Fax: +45 32 83 13 94 www.knudehansen.com E-mail: [email protected]

March 2006 CHJ

HSVA Scaling Results

for

VLCC with ACS


05047.01.0510.01 November 2005

OLO/CHJ K N U D E . H A N S E N A / S Page 1

Principal Dimensions

Length overall. abt. 333,30 m

Length between p.p. 318,00 m

Breadth, moulded 58,00 m

Depth moulded 32,10 m

Design draught 21,35 m

Gross Tonnage abt. 161.000

Deadweight

Deadweight all told on design draft to be (with air) 283.125 t

Design draft (with air) 21,35 m

Capacities

Heavy fuel oil abt. 8600 m!

Marine Diesel oil abt. 375 m!

Lubricating oil abt. 300 m!

Fresh water abt. 500 m!

Ballast water abt. 99.000 m!

Cargo Tanks

Cargo Tank No. 1 P+S+C abt. 62.425 m!





Slop Tanks P+S abt. 10.080 m!

Total number of tanks 17 abt. 350.100 m!


March 2006

!"#$%&'%()"*&"%)+* KEH No. 03057.01

HSVA extrapolation of model scale results to full scale.

Full scale results Standard ACS

Speed Rt(s) Rt(s) Saving

Kn kN kN %

Faired Faired

11.0 735 619 15.7

12.0 886 745 15.8

13.0 1051 885 15.7

14.0 1228 1039 15.4

15.0 1418 1208 14.9

16.0 1619 1390 14.2

17.0 1830 1586 13.3

HSVA full-scale extrapolation

0

200

400

600

800

1000

1200

1400

1600

6.0 8.0 10.0 12.0 14.0 16.0

Speed (kn)

Po

we

r (k

W)

BASIS VLCC

ACS VLCC

Main particulars of vessel: Vesseltype: VLCC Lpp: 316.00 m B: 61.20 m Draught: 19.22 m Disp: ~287,200 m3

Graph: Below graph shows the full scale data points, and the corresponding faired curve, according to HSVA extrapolation from model test data.


Diagramm Seite 1

Full Scale Prediction based on Model Test Data

DK Group Netherlands B.V. - VLCC Project with ACS

0

200

400

600

800

1000

1200

1400

1600

1800

6 8 10 12 14 16

VS [kts]

Rt S

[k

N]

Model 20-01 - Open Cavity

Model 10-01 - Closed Cavity

LWL = 322.75 m

B = 61.20 m

T = 19.22 m

Disp = 287379 m!


Model 10-01, Closed Cavity

full Model For both Model 10-01 and 20-01 following particulars are valid:

Scale 45.014 Lwl 322.75 m

Lwl 322.75 7.17 m B 61.2 m

S 26656.6 13.16 T 19.22 m

Visc 1.19E-06 1.14E-06 Disp m3Density 1025 1000

1+k 1.00

Ca -2.55E-04

V(m) Fn Rt(m) Ct(m) Re(m) Cf(m) Cr V(s) V(s) Re(s) Cf(s) Ct(s) Rt(s)

m/s N Knots m/s kN

2204 0.511 0.061 6.835 3.98E-03 3.21E+06 3.69E-03 2.85E-04 6.67 3.430 9.30E+08 1.54E-03 1.57E-03 252.90

2205 0.605 0.072 9.907 4.12E-03 3.80E+06 3.58E-03 5.43E-04 7.89 4.057 1.10E+09 1.51E-03 1.80E-03 404.90

2206 0.711 0.085 12.878 3.88E-03 4.47E+06 3.47E-03 4.09E-04 9.27 4.767 1.29E+09 1.48E-03 1.64E-03 508.24

2207 0.804 0.096 16.204 3.81E-03 5.06E+06 3.39E-03 4.18E-04 10.49 5.397 1.46E+09 1.46E-03 1.62E-03 645.82

2208 0.863 0.103 18.732 3.83E-03 5.43E+06 3.35E-03 4.80E-04 11.25 5.788 1.57E+09 1.45E-03 1.67E-03 765.83

2209 0.932 0.111 21.478 3.76E-03 5.86E+06 3.30E-03 4.59E-04 12.16 6.254 1.70E+09 1.43E-03 1.64E-03 875.44

2210 0.968 0.115 24.103 3.91E-03 6.09E+06 3.28E-03 6.35E-04 12.62 6.494 1.76E+09 1.43E-03 1.81E-03 1041.69

2211 1.003 0.120 25.266 3.82E-03 6.31E+06 3.26E-03 5.64E-04 13.08 6.728 1.82E+09 1.42E-03 1.73E-03 1070.65

2212 1.050 0.125 27.387 3.78E-03 6.60E+06 3.23E-03 5.50E-04 13.69 7.043 1.91E+09 1.41E-03 1.71E-03 1158.14

2213 1.073 0.128 28.364 3.75E-03 6.75E+06 3.22E-03 5.32E-04 13.99 7.196 1.95E+09 1.41E-03 1.69E-03 1194.14

2214 1.118 0.133 31.123 3.78E-03 7.03E+06 3.19E-03 5.90E-04 14.59 7.504 2.04E+09 1.40E-03 1.74E-03 1337.70

2215 1.156 0.138 33.547 3.81E-03 7.27E+06 3.17E-03 6.41E-04 15.08 7.759 2.10E+09 1.40E-03 1.78E-03 1467.00

2216 1.203 0.143 36.209 3.81E-03 7.56E+06 3.15E-03 6.54E-04 15.69 8.070 2.19E+09 1.39E-03 1.79E-03 1593.20

2217 1.237 0.148 37.364 3.71E-03 7.78E+06 3.14E-03 5.76E-04 16.14 8.301 2.25E+09 1.39E-03 1.71E-03 1607.44

287379

Model 10-01 Seite 2



full Model

Scale 45.014

Lwl 322.75 7.17 m

S 26656.6 13.16

Visc 1.19E-06 1.14E-06

Density 1025 1000

1+k 1.00 (measured 1.28)

Ca -2.55E-04

V(m) Fn Rt(m) Ct(m) Cr Re(m) Cf(m) Cf(m)* V(s) V(s) Re(s) Cf(s) Cf(s)* Ct(s) Rt(s)

m/s N Mod. 10-01 Knots m/s kN

2000 0.510 0.061 6.128 3.58E-03 2.85E-04 3.21E+06 3.69E-03 3.29E-03 6.66 3.42 9.29E+08 1.54E-03 1.38E-03 1.41E-03 225.28

2001 0.604 0.072 8.026 3.34E-03 5.43E-04 3.80E+06 3.58E-03 2.80E-03 7.88 4.05 1.10E+09 1.51E-03 1.18E-03 1.47E-03 330.48

2002 0.710 0.085 10.968 3.31E-03 4.09E-04 4.46E+06 3.47E-03 2.90E-03 9.26 4.76 1.29E+09 1.48E-03 1.24E-03 1.39E-03 431.87

2003 0.803 0.096 14.245 3.36E-03 4.18E-04 5.05E+06 3.39E-03 2.94E-03 10.48 5.39 1.46E+09 1.46E-03 1.27E-03 1.43E-03 566.88

2004 0.861 0.103 16.219 3.32E-03 4.80E-04 5.42E+06 3.35E-03 2.84E-03 11.24 5.78 1.57E+09 1.45E-03 1.23E-03 1.45E-03 664.04

2005 0.884 0.105 16.897 3.29E-03 4.70E-04 5.56E+06 3.33E-03 2.82E-03 11.53 5.93 1.61E+09 1.44E-03 1.22E-03 1.44E-03 690.10

2006 0.933 0.111 18.059 3.16E-03 4.59E-04 5.87E+06 3.30E-03 2.70E-03 12.16 6.26 1.70E+09 1.43E-03 1.17E-03 1.38E-03 736.43

2007 0.967 0.115 19.217 3.12E-03 6.35E-04 6.08E+06 3.28E-03 2.49E-03 12.62 6.49 1.76E+09 1.43E-03 1.08E-03 1.46E-03 842.46

2008 1.002 0.119 20.468 3.10E-03 5.64E-04 6.30E+06 3.26E-03 2.53E-03 13.07 6.72 1.82E+09 1.42E-03 1.11E-03 1.42E-03 874.56

2009 1.048 0.125 23.029 3.18E-03 5.50E-04 6.59E+06 3.23E-03 2.64E-03 13.67 7.03 1.91E+09 1.41E-03 1.15E-03 1.45E-03 979.46

2010 1.074 0.128 24.640 3.25E-03 5.32E-04 6.75E+06 3.22E-03 2.72E-03 14.00 7.20 1.95E+09 1.41E-03 1.19E-03 1.47E-03 1041.49

2011 1.120 0.134 26.332 3.19E-03 5.90E-04 7.04E+06 3.19E-03 2.60E-03 14.61 7.51 2.04E+09 1.40E-03 1.14E-03 1.48E-03 1140.91

2012 1.155 0.138 27.950 3.19E-03 6.41E-04 7.26E+06 3.17E-03 2.55E-03 15.06 7.75 2.10E+09 1.40E-03 1.12E-03 1.51E-03 1236.02

2013 1.200 0.143 29.924 3.16E-03 6.54E-04 7.55E+06 3.15E-03 2.50E-03 15.66 8.05 2.18E+09 1.39E-03 1.11E-03 1.50E-03 1333.07

2014 1.236 0.147 32.455 3.23E-03 5.76E-04 7.77E+06 3.14E-03 2.66E-03 16.12 8.29 2.25E+09 1.39E-03 1.18E-03 1.50E-03 1404.10

Model 20-01 Seite 3


DKG IM Final

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Transcript of DKG IM Final