Wilh. Wilhelmsen ASA > Capital Markets Day 2011 Jan Eyvin Wang President and CEO 8 December 2011, Lysaker
> Disclaimer This presentation may contain forward- looking expectations which are subject to risk and uncertainties related to i.a. economic and market conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wilh. Wilhelmsen ASA group undertake no liability and make no representation or warranty for the information and expectations given in the presentation. Shaping the maritime industry 2
> Capital Markets Day - Agenda Driving Energy Efficiency for Sustainable Growth Per Brinchmann - Vice President Technical WW ASA Filip Svensson - Vice President Marine Operations WW ASA Hyundai Glovis Je Seo Park - CFO Hyundai Glovis Ji Won Jung - Assistant Manager Hyundai Glovis Shaping the maritime industry 3
> Wilh. Wilhelmsen ASA > Driving Energy Efficiency for Sustainable Growth Shaping the maritime industry 4
> Energy figures, total fleet (approximate figures, 2011) 135 vessels operated in 3 companies in collaboration with our partner Wallenius Lines Total fuel consumption: Total fuel cost (700USD/t) 1,500,000 [tons/year] 1,000,000,000 [USD/year] 1 % saved = 10 mill. [USD/year] 1 % saved = 45 000 tons less [CO 2 /year] 1 % saved = 500 tons less [SO x /year] 1 % saved = 65 tons less [NO x /year] Shaping the maritime industry 5
> Bunker price development It didn t start today USD/mt 800 700 600 500 400 300 200 100 - jan.05 jan.06 jan.07 jan.08 jan.09 jan.10 jan.11 Source: WPMF Shaping the maritime industry 6
> Environmental Focus It s about reducing your environmental footprint Vessel by Vessel MKII FO consumption ~ 90tons/day MKV FO consumption ~ 70tons/day Cargo unit by Cargo unit Shaping the maritime industry 7
Players in the shipping industry Flag states IMO Port states Class Insurance broker Ship Owner Bunker broker Port Services Crew/Manager Commercial Operator Cargo owner Canals Inland transport Port/Terminal Yard Finance Designer/ Consult Equipm Supplier 8
WW Group companies - unique network and competence Flag states IMO Port states Class Insurance broker Ship Owner Bunker broker Port Services Crew/Manager Commercial Operator Cargo owner Canals Inland transport Port/Terminal Yard Finance Designer/ Consult Equipm Supplier 9
Mk IV; Our new, efficient RoRo vessels 10
Wilh. Wilhelmsen ASA > Driving Energy Efficiency for Sustainable Growth Per Brinchmann - Vice President Technical WW ASA Filip Svensson - Vice President Marine Operations WW ASA 11
Our global routes and network Central and regional offices Terminals Technical sites (VPCs) Technical sites (Plant VPCs) WWL Ocean routes Main ports EUKOR Ocean routes Inland distribution ARC Ocean routes For illustrative purposes not accurate 12
New regulations challenge our operations Emission Control Area (ECAs) Baltic Sea: 19/5 2006 North Sea: 11/8 2007 US & Canada: 1/8 2012 ECA sulphur limits 1/7 2010: Max 1% 1/1/ 2015: Max 0.1% EU directive 2055/33/EC 1/1/2010: Max 0.1% at berth ECA NOx limits Now: Tier II 1/1/2016: Tier III California Air Resource Board 1/1/2012: Max 0.1% 24nm zone CO2 Market based measures EEDI SEEMP Global sulphur limits Now: Max 4.5% 1/1 2012: Max 3.5% 1/1/ 2020 OR 2025: Max 0.5%* Ballast Water Treatment (convention not yet ratified) 1/1/ 2012 New building BWT system installed 1/1/2016 All vessels BWT installed For illustrative purposes not accurate 13
WW Group companies - unique network and competence Flag states IMO Port states Class Insurance broker Ship Owner Bunker broker Port Services Crew/Manager Commercial Operator Cargo owner Canals Inland transport Port/Terminal Yard Finance Designer/ Consult Equipm Supplier 14
Meeting new regulations pro-actively Utilizing total WW Group resources, competence and network to advocate fair and practicable regulations secure unrestricted operations and an even playing field in all trades seek competitive advantages and minimize cost impact by early actions 15
Vessel design - reducing energy consumption Hull lines and main dimensions Propeller and rudder integration Sea and wind resistance reduction Extended model testing in sea states 16
Vessel design - optimizing machinery composition Main engine; flexibility in speed Generators; types and configuration Waste heat recovery systems (exhaust gas heat utilisation) 17
Vessel design - efficient cargo operations Close co-operation with cargo owners and commercial operators Flexibility for vessel capacity utilization Cut time in ports by ramp and cargo hold design Avoid cargo damages and delays through smart design 18
Vessel design - saving energy of all consumers Ventilation of cargo holds and engine room Pumps Accomodation; size, insulation and air conditioning 19
Developing and investing for the future Running R&D projects for future fuels (LNG) and energy systems Using sailing vessels as test labs, i.e. New propeller and rudder applications Anti-fouling Fuel treatment innovations Fuel flexibility through exhaust gas cleaning (scrubber) 20
WW Group companies; - unmatched opportunities Flag states IMO Port states Class Insurance broker Ship Owner Bunker broker Port Services Crew/Manager Commercial Operator Cargo owner Canals Inland transport Port/Terminal Yard Finance Designer/ Consult Equipm Supplier 21
Operation; Ensuring awareness and motivation Crew training and incentives Measuring and reporting tools Route planning Communication vessel port 22
Operation; Reducing speed by 20% saves fuel by 40-50% 90 Tons /d 72 54 36 12 16 20 Knots Shown; Mk IV RoRo 23
Operation; Sailing with optimal conditions Weather routing and speed optimization Hull and propeller cleaning Machinery adjustments Fuel treatment Ballast and trim optimization 24
Summing up about the future Challenges in energy and environmental issues are met by; Utilization Pro-activeness Designing Investing Motivating Vessel efficiency Energy efficiency 25
Summing up about the future; - smooth and efficient sailing! 26