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MARKET TRENDS – SHIP POWER

ROGER HOLM

Day Month Year Presentation name / Author1

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PRODUCTION AND SERVICES GLOBALLY

SERVICES NETWORKPRODUCTION FACILITIES (FULLY OWNED)PRODUCTION FACILITIES (JOINT VENTURES)PRODUCTION FACILITIES (ONGOING FOOTPRINT INITIATIVES)

2 2015 Corporate presentation 2015

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OUR PERSONNEL

17,700 70 200PROFESSIONALS COUNTRIES LOCATIONS

Diesel Engine Portfolio & Application types

4 © Wärtsilä

0 5 10 15

38

20

46F

0.8 -1.8 MW

3.0 – 9.3 MW

7.2 -19.2 MW

20

32

• Offshore (PSV, AHTS, Drill rigs)

• Dredgers• Fishing• Tug• AE on Merchants

• Coastal Tankers• IWW• Fishing• Tugs• Barges• Small ferries• AE on Merchants

• Cruise ships• RO-RO/PAX• Ferries• Dredgers

26

2.0 -5.4 MW

4.4 – 11.6 MW

• Offshore (PSV, AHTS, Drill rigs)

• Dredgers• Fishing• Tug• AE on Merchants

• Dredgers• Heavy Lift• Cruise & Ferry• Fishing

Dual Fuel Engine Portfolio & Application types

5 © Wärtsilä

0 5 10 15

50DF

20DF

46DF

0.5 -1.8 MW

3,0 – 10,0 MW

6.2 -18.3 MW

5.8- 17.5 MW

20

34DF

• LNG Carriers• Cruise ships• RO-RO/PAX• Ferries• Large Offshore Units

• Small LNG / CNG vessel

• Small cargo vessels• Supply vessel• Offshore application &

Production• Aux. engines with

W50DF

• LNG Feeder• Jack-up• Tugs• Small cargo vessels• Barges• Small ferries• Aux. engines with

W34DF & W50DF

• LNG Carriers• Cruise ships• RO-RO/PAX• Ferries• Large Offshore Units

>1,300 engines >12,000,000 running hours

LNG CarrierMultigas CarrierProduct tankerBulk tankerCNG carrier

Offshore supplyFPSOFSRUPlatformFSO

FerriesTugsROPAXNavyIcebreakerIWWGuide ship

168 vessels8 vessels2 vessels1 vessel1 vessel

FPSOROROChemical tankerFerriesIWW

Chemical tankerContainer vesselLNG Carrier

4 vessels4 vessels3 vessels

Plants 75Output 4877 MW Online since 1997

24 vessels5 vessels4 vessels2 vessels1 vessel

9 vessels6 vessels3 vessels1 vessel1 vessel1 vessel1 vessel

4 vessels2 vessels1 vessel1 vessel1 vessel

732 engines

123 engines

61 engines

28 engines

11 engines

352 engines

Wärtsilä Dual Fuel application references

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0

200

400

600

800

1 000

1 200

1 400

2000 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

LNG Carriers Other vessels

LNG as ship fuel gaining ground

LNG fuelled fleetNumber of vessels

7

Fleet growth based on current order book only

DNV estimate(excluding LNGC)

Clarkson estimate(including LNGC)

Source: DNV GL gas report Sept 2014. LNGC order book data and LNGC estimate: Clarkson Research Services 12.03.2015, LNG Trade and Transport study 2014

*LNGC: LNG Carriers

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The marine industry: fundamentals in place despite a challenging 2014

8

Source: Clarkson Research Services, IMF 26.01.2015

-5%

0%

5%

10%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Seaborne trade growth GDP growth

Fundamentals supporting growth in seaborne trade:• Growth in oil products

trade to Asia and OECD countries

• Recovery in global container trade

• Continued consumer demand growth in developing economies

World seaborne trade and GDP development% Yr/Yr

Fleet growth bottoming out:• Slower pace of

deliveries• Removals rate

expected to stay high in the medium-term

Deliveries, removals, and fleet growth# vessels

0500

1 0001 5002 0002 5003 0003 500

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Deliveries Removals Net fleet growth

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Subdued vessel contracting

Source: Clarkson Research Services, figures exclude late contracting* CGT= gross tonnage compensated with workload

*

*

0

1

2

3

4

5

0

50

100

150

200

250

01.0

903

.09

05.0

907

.09

09.0

911

.09

01.1

003

.10

05.1

007

.10

09.1

011

.10

01.1

103

.11

05.1

107

.11

09.1

111

.11

01.1

203

.12

05.1

207

.12

09.1

211

.12

01.1

303

.13

05.1

307

.13

09.1

311

.13

01.1

403

.14

05.1

407

.14

09.1

411

.14

01.1

503

.15

Mill

ion

CG

T

# of

ves

sels

Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

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Shipbuilding volume China continues to dominate

Merchant + Specials order book, 4,083 vessels Offshore order book, 965 vessels

Source: Clarksons World Shipyard Monitor March 2015

10

Total order book: 5,048 vessels

46%

22%

19%

1%

10%

China Japan South KoreaBrazil Rest of world

44%

11%6%

5%

5%

5%

23%

China Brazil USNorway South Korea NetherlandsRoW

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Shipbuilding value A more diversified picture

Merchant + Specials order book,USD 204 billion

Offshore order bookUSD 101 billion

Source: Clarksons World Shipyard Monitor March 2015

11

Total order book value: USD 305 billion

33%

24%

20%

5%

3%3%

14%

South Korea Brazil China Norway

US Netherlands RoW

33%

31%

17%

2%

17%

China South Korea JapanBrazil Rest of world

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