Napa News. Matti Salo, Napa Ltd

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1 1 (6), Napa Ltd 1. Introduction Dear NAPA User Meeting participant, The whole Napa team has the pleasure to organise this year s NAPA User Meeting in Helsinki. This time we have the pleasure to have the UM in the HTC (High Tech Center) in the same PINTA building where Napa Helsinki offices are located. We also hope you will enjoy the day time and late night attractions that Helsinki can offer at this time of the year. During this User Meeting, there will be several presentations given by NAPA user organisations. Herewith, we want to thank all those NAPA users who have contributed to this User Meeting by preparing their own presentations. We believe the real customer presentations will increase the interest and value for all participants. The business year 2007 was a record-breaking year in many aspects. The turnover of the Napa Group reached over 12.7 m for the first time in the history of the Napa Group and the turnover was increased by 22% compared to the year Also, a record number of new organisations joined the NAPA user community last year. Strategic partnerships were continued with a few of the leading maritime organisations in the world. At the same time, we want to express our gratitude for all the long-term relationships with many NAPA user organisations. With these opening words, the whole Napa team welcomes all of you to this 24 th NAPA User Meeting. 2. New customers Since last April, the sales of the NAPA system have been on a record-breaking level. A total of 50 new customer organisations have joined the NAPA user community. Our new customers, listed in alphabetical order grouped by types, are: Authorities: China Classification Society, China Vietnam Register Naval Authorities: Ministry of Defense, United Kingdom Shipyards: Cicek Shipyard, Turkey COSCO Shipyard Group Co Ltd, China 2008 Napa Ltd NAPA User Meeting 2008

2 2 Hakodate Dock Co Ltd, Japan Halong Shipyard, Vietnam Hoang Anh Shipbuilding Industry Joint Stock Company, Vietnam Mitsui Engineering & Shipbuilding, Tamano works, Japan Murakami Hide Shipbuilding Co Ltd, Japan Qingdao Beihai Shipbuilding Heavy Industry Co Ltd, China Scheepswerft Ferus Smit b.v, Netherlands STX Heavy Industries Co Ltd, Korea Tebma Shipyards Limited, India Wuchang Shipyard, China Consultancies: 21 st Century Shipbuilding Co Ltd, Korea ACT Co Ltd, Japan Arti Engineering, Construction, Contract, Ship Ind. & Trade Ltd Co, Turkey China Ship Scientific Research Center, China Far East Ship Design & Engineering Co Ltd, Korea GEO Shipbuilding & Marine Tech Co Ltd, Korea Icepronav SA, Romania JHME Marine Engineering Co Ltd, Korea JUNE Engineering, Korea Korea Maritime Services Co Ltd, Korea Larsen & Toubro Limited, Marine Engineering Centre, India LMG Marin AS, Norway Maritime Projects AS, Norway Ming Sheng Marine Technology Co Ltd, China Mirae Marine Consulting & Engineering Co, Korea Moss Maritime AS, Norway Naval Engineering & Design NED Ltd, Poland Navtek Naval Technologies Inc, Turkey Offshore Oil Engineering Co Ltd, China Saipem s.a., France Saltwater Engineering B.V., Netherlands Sino-Pacific Shipbuilding Group, China Smart Engineering and Design Solutions, India Ship Solutions Fi Ltd Oy, Finland TSD Engineering BV, Netherlands Ulstein ES-CAD, Turkey Uni Marin Engineering, Turkey Volgo-Caspian Design Bureau, Russia Wuhan Ship Development & Design Institute, China Model Basins and Research Institutes: Akashi Ship Model Basin, Japan Maritime & Ocean Engineering Research Institute, Korea Maritime Schools and Universities: Indian Institute of Technology, India Ocean Education & Research Centre Pvt Ltd, India Saint Petersburg State Marine Technical University, Russia NAPA User Meeting Napa Ltd

3 3 Others: Kuok (Singapore) Limited, Singapore Shanghai Dingheng Shipping Co Ltd, China Today, the total number of customer organisations using the NAPA system amounts to 282, and the system is being used in 33 countries NAPA User Organisations Year Amount Figure 1 Accumulated number of NAPA user organisations Onboard-NAPA system The sales of the Onboard-NAPA loading computer system have also continued to increase. The total number of Onboard-NAPA references today is ~850, and we expect the number will increase during next year by more than 150 ships/year. Onboard-NAPA Installations Year Amount Figure 2 Accumulated number of Onboard-NAPA references 2008 Napa Ltd NAPA User Meeting 2008

4 4 3. Organisation and new premises in Helsinki 3.1 Moving into new premises in June 2007 Helsinki office moved into new premises (HTC PINTA building) during mid June last year. Today, we have been running the operations in these premises for almost one year and without hesitation it can be summarized that we are very pleased with the current office infrastructure. Herewith, we wish that you will take the opportunity to visit our office premises in the 5 th and the 6 th floor during the UM. 3.2 New Napa subsidiaries in Japan, India and Romania Napa Group started its operations in Asia during 2001 by opening a Representation office in Japan. Since then, the number of NAPA User organisations has reached the level of over 30 Japanese companies. Due to this fact, the Napa Group decided to establish its first overseas local company in August This company, called Napa Japan Kabushiki Kaisya (Ltd.) is located in Kobe and Mr Naoki Mizutani was naturally appointed as Managing Director as he has been in charge of Napa business activities in Japan since Furthermore, during 2007 the Napa Group decided to establish a subsidiary in India, called Napa Software Services India Pvt. Ms Lakshmi Juttu was appointed as Managing Director for this subsidiary operating in Bangalore. Ms Juttu is an experienced NAPA expert having used and developed the NAPA system for several years. The main goals for the Indian subsidiary have been set to focus on customer driven product development projects and training activities. Currently, the Napa Group has seven customer organisations in India. In addition, the Napa Group founded a subsidiary in Romania in the beginning of This company, called Napa Romania SRL, has a goal to build a centre of expertise in order to serve Napa s own development needs as well as selected customer development projects. Basically, Napa Romania can be seen as an extension of the Napa Technology Unit. Mr Dan Culache was appointed as Managing Director of Napa Romania. Mr Culache is a Naval Architect by education and an experienced Software Engineer. Galati, the location of Napa Romania, is at the heart of Romanian shipbuilding industry. All in all, the Napa Group employs today a total of 110 persons. The present organisation, including the positions of all the current personnel of the Napa Group, is presented in Enclosure 1. We are also pleased to inform that the same persons were elected to the board of Napa for the fiscal year Our economy As an indication of our functional and efficient organisation, we are once again very pleased to report that the year 2007 was a successful business year for the Napa Group. The turnover in 2007 was 12.7m, and when compared to the previous year, there was an increase of 17 %. For year 2008, we forecast to exceed the 14.5 m level. NAPA User Meeting Napa Ltd

5 (millions EUR) B Figure 3 Development of the turnover of the Napa Group 5. Vision and strategy of the Napa Group 5.1 Mission and values A common factor for many high-performing companies and organisations is the fact that they have identified their mission in order to do something meaningful for the society, environment, etc. In our case in the Napa Group, we have defined our mission to be the following: Improving the safety and performance of the global marine industry Furthermore, the Napa Group has carried out a value project during This process was strongly influenced by the whole Napa staff initiated during the Employee Strategy Day. The values were identified and they are as follows: Commitment builds trust Success through knowledge Enjoy working together Courage leads the way 5.2 Success factors of the Napa Group Napa Ltd has been operating as an independent software company for more than 18 years. Before focusing on the future business strategies, this is a good time to review the key factors that have contributed to the successful sales of the NAPA systems over such a long period of time. In our opinion, at least the following factors are worth mentioning: The NAPA system has been developed from the start in a genuine ship design environment. The versatile NAPA system architecture and database management, in addition to the NAPA macro programming language, have provided remarkable technical advantages in comparison to many other systems. Since the foundation of Napa Ltd, the Napa staff members have possessed a good combination of different kinds of competencies. A deep commitment to overall customer satisfaction has been one of our core values ever since the foundation of Napa Ltd Napa Ltd NAPA User Meeting 2008

6 6 The investments in product development and new applications made within the NAPA product family have always been closely associated with providing real added value to our customers and the possibility of making profit. In consequence, both the overall user satisfaction and the financial situation of Napa Ltd are today very good (Napa Ltd has been AAA-rated continuously during the last 11 years!). NAPA User Meetings have proved to be excellent opportunities for exchanging information and further development ideas with our customers. 5.3 Vision and strategy Our vision is for the NAPA software systems to be the global market and technology leaders in the selected application areas. Our core competencies are based on in-depth understanding of 3D modelling of ships and naval architectural and ship performance analyses. According to our corporate strategy, the NAPA system shall play a central role during the initial and basic ship design phases and ship operations. Keys to achieving this goal are the full exploitation of the 3D NAPA ship model concept and close cooperation with the leading shipyards, classification societies, consulting companies, maritime authorities, ship owners and operators. Since the majority of shipyards, classification societies and ship owners is nowadays using the NAPA system, it has become a very important issue to be able to exchange the NAPA databases between these organisations. It is obvious that the ship design/approval process will be much more efficient if the ship model can be exchanged in electronic format (that is, NAPA database). The very same challenge is met when the shipyard delivers a loading computer to the ship owner, and in many cases, complicated direct damage stability calculation results have to be approved by the classification society in question. The main challenge when exchanging the NAPA databases between different organisations is the fact that the shipyard in question wants to protect some critical parts of their design (for example, body plan, lightweight information, etc). In order to solve this currently very hot topic, the functionality to secure the ship design data in the NAPA database has been developed. Therefore, there are different levels of database encryption functions that we hope will solve this matter. 5.4 Onboard-NAPA and NAPA SPS development The Onboard-NAPA product family, Onboard-NAPA Decision Support for Flooding Control (DFC) and NAPA SPS (Ship Performance Systems), will be also presented during this User Meeting. In general, the Onboard-NAPA business is growing steadily and shipyards using the NAPA system are gradually supporting more the sales of Onboard-NAPA. The reasons for this trend are mainly the new rules L5 (direct damage stability calculation capability is a compulsory requirement) and the database security issues which are important especially among Asian shipyards. During the ongoing year, we anticipate, in particular, a significant growth in the sales of the NAPA Power and NAPA Log (Electronic Logbook) products. All in all, we believe that the considerations presented above give the Napa Group and the NAPA user community very good reasons to view the future development and the use of the NAPA product family with confidence. NAPA User Meeting Napa Ltd

7 5 May 2008 ENCLOSURE 1 ORGANISATION OF THE NAPA COMPANIES Board NAPA Business Unit (NBU) Ari Elo Chairman Ilmo Kuutti, Vice President Juhani Saarilahti Deputy Chairman Ilmo Kuutti Member Sales and Marketing Markku Riipinen Member Carl Johan Schauman, Manager, Sales and Marketing Member Ralf Eklund, Manager, Key Customers Carl Johan Schauman Member Tommi Toivonen, Sales Manager Reijo Sulonen Member Maaria Tuikka, Technical Writer Customer Service Björn Schönberg, Manager, Customer Services Katja Lankinen, Naval Architect Ulla Kärkkäinen, Assistant Anna Palonen, Customer Service Manager Christopher Ridgewell, Naval Architect Juhana Salminen, Product Quality Manager Jarkko Suominen, Customer Service and Product Development Finance and Administration Britta Eklund, Manager, Finance Carita Granström-Terho, Financial Accountant Johanna Kourunen, Financial Accountant Jaana Pennala, Financial Accountant Research and Development Mikko Kuosa, Manager, Research and Development Jan Furustam, Customer Service and Product Development Daniel Lindroth, Customer Service and Product Development Jukka Määttänen, Customer Service and Product Development Matthew Patey, Sales Manager Toni Salmela, Customer Service and Product Development NAPA Steel Tomi Holmberg, Manager, NAPA Steel Mikko Forss, Customer Service and Product Development Tapio Hulkkonen, Director, NAPA Steel Business Development Antti Kujala, Structural Engineer Tommi Kurki, Structural Engineer Antti Metsä, Manager, Key Customers Vesa Uppala, Customer Service and Product Development, President Anne-Mari Kantola, Executive Assistant NAPA Technology Unit (NTU) Tom Sundell, Vice President Satu Björkgren, Secretary Robert Brotherus, Software Developer Jan von Haartman, Chief Systems Analyst Pertti Hildén, Senior Systems Engineer Kari Husa, Software Developer Seppo Kalske, Systems Analyst Marketing Antti Karanta, Software Architect Outi Peltoniemi, Marketing Communications Manager Markku Larmela, Senior Systems Analyst Jyri Luukkonen, Systems Analyst Jan Mattsson, Systems Analyst Jani Merikanto, Systems Analyst Jari Myllykangas, IT Manager Heikki Piippo, Systems Analyst Representation Office in China Antti Rautalin, Systems Administrator Ni Bo, Manager Pekka Ruponen, Systems Analyst Harri Seppälä, Senior Systems Analyst Cheng He, Customer Support Engineer Heikki Sutinen, Systems Analyst Sun Weijing, Customer Support Engineer Toivo Vaje, Systems Analyst Ville Ylöstalo, Systems Engineer Representation Office in Korea Young-Woon Jang, Manager Woo-Sung Cho, Onboard-NAPA Project Engineer Min-Jeong Jeong, Secretary Hag-Sung Kim, Customer Support Engineer Sebastian Sjöberg, Onboard-Napa Site Manager Joong-Seok Yoon, Onboard-NAPA Project Engineer Onboard-Napa Ltd, President of Onboard-Napa Oy Sales Jan Schauman, Manager, Sales and Marketing Anna-Liisa Jylhä, Assistant, Sales and Deliveries Morthen Mathisen, Sales Engineer Johan Nyström, Manager, Sales Development Petri Pennanen, Manager, Development Ronny Eriksson, Project Manager Paavo Kojonen, Product Manager, Ship Performance Systems Kimmo Laaksonen, Systems Engineer, Ship Performance Systems Tommi Riijärvi, Product Manager, Tankers and FPSOs Stefan Röblom, Systems Engineer Timo Sihvola, Senior Systems Engineer Tommi Vihavainen, Project Manager, Ship Performance Systems Petteri Vilanen, Product Manager, Passenger and Navy Vessels Deliveries and After Sales Esa Henttinen, Manager, Deliveries and After Sales Jukka Ignatius, Project Engineer Harri Ikävalko, Product Manager, Dry Cargo and Offshore Vessels Risto Kariranta, Project Engineer Vesa Keskinen, Software Engineer Roberto Parodi, Project Engineer Lauri Pöyhönen, Project Manager Ville Villikka, Project Engineer Clas-Johann Westén, Project Manager Napa Japan Ltd Naoki Mizutani, Managing Director Naoko Fukushima, Secretary Akio Watanabe, Manager of Customer Service Napa Software Services India Pvt. Ltd. Lakshmi Juttu, Managing Director Alok Gupta, Trainee, Software Developer Pushkar Jain, Trainee, Software Developer Ramya Ramaswamy, Trainee, Software Developer Ignatius Selvaraj, Trainee, Software Developer Napa Romania Srl Dan Culache, Managing Director Roxana Cocariu, Senior Software Developer Cristian Grajdeanu, Software Developer Roxana Grigore, Team Lead