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NORTH SEA PASSENGER AND FERRY CONFERENCE 09.10 2008

Destination Norway on a Danish, German and continental market and Fjord Line’s role there

By Ingvald Fardal, President / CEO Fjord Line

Bergen-Stavanger-Hirsthals

• Both cargo and passenger segment• Full year operation• 3% market share Norway - EU

• 180.00 pax (105.000 from Norway, 75 000 from EU)• 50.000 cars• 15.000 trailers

• 170 employees• Revenue approximately 25 MEURO

MS Bergensfjord

• 100% owned by Fjord Line• Build: 1993 (Bruce Shipyards,Landskrona/Fosen Mek)

• Length: 134,5 meters• Dead weight: 16.749 tonnes• Engine: 2 * Wartsila 8ZA40S diesel• Max speed: 19 knots• Cabins: 207 (559 beds)• Max #pax: 882• Lane meters: 720 (350 cars/ 150 cars & 45 trailers)

Kristiansand - Hirtshals

• Passenger segment• Summer season only• 4% market share Norway - EU

• 250.000 pax (170 000 Norwegian & 80 000 EU)

• 118/28 employees (hi/lo season)• Revenue approximately 12,0 MEURO

Fjord Cat

• 100% owned by Fjord Line• Build: 1998 (Incat Australia Pte Ltd., Hobart)

• Length: 91,3 meters• Dead weight: 486 tonnes• Engine: 4 * Ruston 20RK270• Max speed: 48.1 knots• Seats: 674 + 26• Max #pax: 660

• (The ship is certified for 900 pax, but this will require installments of more seats)

• Lane meters: 900 (220 cars & 4 busses)

The new Fjord Line

“The preferred ferry partner to and from Norway”

Vision

• Entering established monopolies and taking a clear number 2 position

• Low price profile• Take part in further consolidation in the

industry• Cost efficient compared to the larger

operators

Business idea

• To be number 2 within the ROPAX segment between Norway and EU

• At least 15% market share between Norway and EU in the pax market

• At least 20% market share in the cargo market

Main goals

Market

• Color Line is dominating with approx 70% market share from Norway to EU (65% from South-/West-Norway)

• The company is presently in the ropax market between South-/West- Norway and EU, which represents 30% of the total market from Norway to EU

• Steady growth in the passenger segment, 54.000 new passengers in yoy growth from 1990

• Significant growth in the cargo segment, from approx 45.000 units in 2004 to 60.000+ units in 2006

Market from Norway to EU

Source: Cruise & Ferry News

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#Pax from Norway to EU#pax (1000)

Market from South- and West-Norway

• Steady growth in passenger market• CAGR of 54.000 pax since 1990

Source: Cruise & Ferry News

Pax from South-/West-Norway

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Pax

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Outlook

• European travel industry is in a steady growth phase• Cargo and transport motivated market is expected to continue

growing• High growth in numbers of caravans and motor home vehicles sold

in Norway and EU• Restructuring opportunities still possible• Market is non-cyclical, in periods of low economic growth, an

increasing number of people will choose a cheaper form for holiday, compensating for the loss of cargo trasportation

Sales & marketing in EU

Past• Worked via General Sales Agents and Travel Agents

Future, 2009+• Fjord Line sales office in Germany• General Sales Agents and Travel Agents in other markets

Main marketing activities

• Advertising• Web• Catalogues• Sales Promotion• Public Relation• Fairs• Mischellaneous

Advertisement

Consumers• Primarily via Innovation Norway and Fjord Norway

Group (Buss) , touroperators• Via partner catalogues

Individual, touroperators• Via partner catalogues

Web

Fjordline.no• Special designed web pages

Partner web sites• Banner advertising• Links

Catalogue distribution

Schedules & fares• Previous customers & on request

Products• Previous customers & on request

Sales Promotion

Roadshows• Travel Agents and special interest groups (fishing, nature)

Window-display• Travel agents

Public Relation

Press leases• Travel industry media• Special interest media• Consumer media

Study trips• Co-operation Innovation Norway and Fjord Norway

Fairs

Travel fairs• ITB• RDK Touristic

Special interest fairs• Fishing• Hunting• Nature and adventure

Miscellaneous

Travel related membership associations• RDA• DNF• VFF