B u s i n e s s p r e s e n tat i o n 1 skysails turn Wind into - - PDF document

B u s i n e s s p r e s e n tat i o n

T U R N W I N D I N T O P R O F I T

1 skysails – turn Wind into profit! 1 2 skysails GmBH & Co. kG 2 2.1 exeCutive Board 2 2.2 advisory Board 4 3 History and milestones 5 4 finanCinG 8

B usin ess presentat ion skysa ils G m BH & C o . k G

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T U R N W I N D I N T O P R O F I T

skysails has the objective of reducing the fuel con- sumption of modern shipping by using environmen- tally sound, free of charge wind energy. skysails is developing, producing and selling an internationally patented wind propulsion system based on large towing kites. By using the skysails technology, ship operation will become more profi- table, safer, more environmentally sound and more independent of declining oil reserves. Currently, skysails is offering towing kites for cargo vessels with an effective load* of between 8 and 32 tons. the scheduled product program compri- ses towing kite propulsion systems with an effective load* of up to 250 tons. an effective tractive force of 8 tons by a skysail corresponds to approx. 600 to 1,000 kW installed main engine power - depending on the ship‘s pro- perties (propeller efficiency degree, resistance, etc.) Depending on the prevailing wind conditions, a ship’s average annual fuel costs can be reduced by 10 to 35% by using the skysails-system. under

• ptimal wind conditions, fuel consumption can tem-

porarily be cut by up to 50%. the skysails-system consists of a towing kite pro- pulsion and a wind-optimized routing system. it is used offshore and for relief of the main engine, if wind conditions allow. the skysails technology differs from conventional sailing systems, which fit the sail to a mast and the- reby connect it to the ship, in that the towing kite of the skysails-system is connected to the ship via a towing rope. sail area and ship are thus separate from each other. the resulting characteristics of the skysails technology offer ships an auxiliary wind propulsion with an entirely new performance spec- trum: high performance, high practicability and high safety. Virtually all existing cargo vessels and new builds can be retro- or outfitted with the skysails auxiliary wind propulsion system.

1 skysails – turn Wind into profit!

control pod towing kite towing rope winch control system force transmission point launch and recovery system SYSTEM COMPONENTS

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2 . s k y s a i l s G m B H & C o . k G

skysails was established in Hamburg in 2001 as a company with limited liability. its enrolment in the Commercial register took place at the local court in Hamburg (number HrB 82712) on 15th february 2002. the legal form of the company changed during the financing round in 2004: the legal successor of skysails GmbH and the presently operating enti- ty is the newly established skysails GmbH & Co.

• kG. its enrolment in the Commercial register took

place at the local court in Hamburg (number Hra 100874) on 23rd september 2004. Complemen- tary to that is the former skysails GmbH, which has been renamed skysails Gründungs GmbH for legal reasons. Head office of the company is at the Hanseatic City

• f Hamburg. additionally, skysails has a test centre

at the Hanseatic City of Wismar. the business of the skysails GmbH & Co. kG is lead by Dipl.-ing. stephan Wrage, Dipl.-ing. martin lohss and Dipl.-ing. stephan Brabeck. the executive board of the skysails GmbH & Co. kG is actively supported by an advisory board of four renowned experts. Currently skysails employs 48 members of staff,

• f which most are engineers. additionally external

employees support the development work. skysails has been financed by investors to about 90% and by public finding to about 10% so far. main investor is a renowed ship financer the leer- based Jan luiken oltmann Gruppe GmbH & Co. kG.

2 . 1 e x e C u t i v e B o a r d

the business and operations of skysails GmbH & Co. kG are led by the managing directors and graduate engineers stephan Wrage as chairman

• f the executive board; martin lohss, the admini-

strative executive director; and stephan Brabeck, who as technical director is in charge of skysails development work. stephan Wrage is the chairman of the executive board and is in charge of sales, public relations, investment relations and business development. He was born in Hamburg in 1972 and studied industrial engineering at the technical university of kaiserslautern and the technical university of Dres- den, focusing on mechanical engineering, logistics, innovation management and controlling. He completed his studies with a Diploma in industrial engineering and a honours

• certificate. During his studies he was a

member of the managing board of the “Verein Deutscher Wirtschaftsingeni- eure” (VWi, association of German industrial en- gineers).

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T U R N W I N D I N T O P R O F I T

1993-2000 self-employed as a consultant for it and chip card solutions 1997-1998 factory new-build saD company, Dresden planning of logistics and material flow, design of the factory layout. 1995-1998 top business aG (former philips academy), nürnberg. project management, conceptual design, carrying out management seminars and worshops since 2000 stephan Wrage has worked full time

• n developing and patenting the towing kite pro-

pulsion system. He is an enthusiastic sailor and kite flyer. martin lohss, in his capacity as admi- nistrative executive director, is responsi- ble for the areas finance and controlling, human resources, organizational deve- lopment, information technology, mate- rials management and administration. He was born in Hamburg in 1966 and earned a degree (Dipl.-ing) in biological enginee- ring at the Hamburg university of applied sciences. 1986 1992-2000 1993-1994 since 1997 as a seed investor of skysails, martin lohss has provided advisory support to corporate manage- ment in developing the team since 2002. He has been a member of the executive board since 2004. stephan Brabeck, as technical direc- tor, has had leadership oversight of re- search and development, manufacturing and service since January 2005. He was born in Cologne in 1962 and earned an engineering degree from aachen university where he majored in aerospace enginee- ring. 1981-1989 aachen university, awarded a degree (Dipl.-ing) in aerospace engineering 1991-1992 Developmental engineer, schottel GmbH & Co. kG, spay 1992-2001 Director of research & Development, schottel GmbH & Co. kG, spay 2001-2002 acting managing director, schottel propulsion technology, Wismar 2002-2004 technical director and proxy, schottel GmbH & Co. kG, spay stephan Brabeck has been a managing director and worked as technical director for skysails since 1 January 2005. an avid sailor, he contributes in- depth expertise, years of experience and exceptio- nal market knowledge to the company. study abroad at the university of Cambridge, england studied and earned a degree in biological engineering at the Hamburg university of applied sciences enrolled in the mechanical engineering program at the technical university of Vienna, austria founding partner of the engineering office for social & environmental assets (sumBi), which provides consulting and research in the fields of energy, environmental and material-flow management.

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samuel simonsson (chair- man of the advisory board) has extensive expertise and practical experience in establishing tech- nology companies as co-founder and longstanding chairman of the board of rofin sinar, the leading manufacturer

• f industrial lasers. today he advises and assists

technology companies both inside and outside Ger- many as a member of advisory and supervisory boards.

• prof. dr.-ing. Gerhard Jensen (deputy chair-

man of the advisory board) taught shipbuilding at the technical university of Ham- burg-Harburg and was the head

• f the Hamburg ship model Ba-

sin (HsVa) for many years. He is currently the managing director

• f the ship propulsion manufactu-

ring company schottel GmbH &

• Co. kG. He brings with him many years of expe-

rience in ship design and a solid understanding of the market. andré tonn is the managing director of the olt- mann Group, skysails‘ lead in- vestor, and has over 15 years of professional experience in ship

• financing. as an advisory-board

member, he shares his invaluable market expertise, superb contacts and industry-spanning know-how with the company. Hermann neemann is recog- nized throughout Germany as

• ne of the most successful tax

consultants for shipping compa-

• nies. through the professional

support he has provided to more than 200 ships, he now enjoys close international contacts with shipping companies and detailed knowledge about the maritime industry.

2 . 2 a d v i s o ry B o a r d

skysails is a fledgling technology company that de- pends on the support of experienced experts. the company has succeeded in getting individuals of exceptional professional ability and competence from the fields of corporate development and ship- ping to join its advisory board. With their extensive experience, they make a decisive contribution to driving the developments in a highly focused and timely manner.

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T U R N W I N D I N T O P R O F I T

as testing platform ii skysails used the “Galileo“ an 8-meter, 2-ton scale model of an existing container ship from the Hamburg ship model Basin (HsVa). the first step was to conduct scientific tests in the towing tank at the Hamburg ship model Basin to examine a kite‘s tractive behavior on conventional cargo ships. practical tests on the Baltic sea that used this very same model propelled by a small to- wing kite proved that the skysails technology is sui- table for cargo shipping. the data collected in the test allowed the first back calculation to be made

• n the system in original scale. already at that time

the ship and towing kite were remotely controlled.

February 2003. Testing platform II “Galileo“: Test at the HSVA

3 History and milestones

in 2001 skysails started with the development of the world‘s first practicable towing kite propulsion system for commercial shipping and luxury yachts. then after five years of intense developmental work, the basic research and engineering was completed near the end of 2005. all essential system compo- nents successfully underwent trials off the coast of Wismar on the Baltic sea aboard the 15-meter tes- ting platform “Jan luiken“. in early 2006 the final development phase prior to the market launch of the skysails-system began on board the approximately 55-meter buoy-laying vessel ms “Beaufort“. the first skysails-systems are being installed on pi- lot customer cargo ships in 2007. the first ship to be outfitted with skysails propulsion is the 133-me- ter ms “Beluga skysails“ belonging to the Bremen- based Beluga Group. the following pictures document the development process of the skysails-system: 2003/04: testinG platform ii “Galileo“

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the skysails-system is currently installed on the al- most 55-meter and 800-ton experimental ship ms “Beaufort“ (formerly the „ms Buk“). Work to equip the “Beaufort“ began in January 2006. By the end of 2006 skysails had scaled the towing kite‘s area on this ship all the way up to 160 square

• meters. this marked the first time that the skysails-

system aboard the “Beaufort“ had reached full-sca- le size. small cargo ships, fish trawlers and super yachts can already be equipped with systems of this size. “Galileo“ during practical testing

• n the Baltic Sea in spring 2004

Data “Galileo“ Data original ship length: 8.0m length: 200m Width: 1.12m Width: 30m Draught: 0.38m Draught: 10m Weight: 2t Weight: 40.000t scale: 26.6:1 speed: 20kn 2004/05: testinG platform iii “Jan luiken“ the outfitting of systems components for towing kites having a surface area of up to 40 square meters

• nto the 15-meter, 18-ton my “Jan luiken“ as sky-

sails testing platform iii began in november 2004. all key system components, such as the launch and recovery system, were successfully tested in prac- tice first-hand over the course of 2005. the system

• perated in a semiautomatic mode and the alpha

version of the autopilot was already implemented at that time. 2006: furtHer development skysails-system for CarGo sHips “Jan Luiken“ during practical testing in summer 2005

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T U R N W I N D I N T O P R O F I T

the first skysails-systems are being installed on pi- lot customer cargo ships in 2007. the first ship to be outfitted with skysails propulsion is the 133-me- ter ms “Beluga skysails“ belonging to the Bremen- based Beluga Group. pilot customers will employ the skysails-systems during regular shipping ope- rations and gain thorough and detailed practical experience using them. Due to longer project durations, the marketing of skysails-systems for super yachts was moved ahead and began in 2nd quarter 2007. a first sales con- tract has already been signed with the french super yacht builder 30m+ yachts.

2007: First pilot system on the MS “Beluga SkySails“

2007: pilot series CarGo sHip, market launCH super yaCHt 2008: series produCtion CarGo sHip

MS “Beaufort“ during practical testing

• n the Baltic Sea in summer 2006

the startup of series production of skysails-systems for cargo ships is scheduled for 2008.

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• f skysails‘ funding to date, some 90% has been

provided by investors and about 10% through pu- blic grants and subsidies. the lead investor is the re- spected ship financing company Jan luiken oltmann Gruppe GmbH & Co. kG based in leer. Besides private investors, the group of skysails inve- stors also includes numerous notable shipping com- panies such as triton seatrade, reederei Wessels, reederei Jüngerhans, Briese schiffahrt, and reede- rei opielok. following the establishment phase of 2001-2003, during which skysails was funded primarily by cor- porate founder stephan Wrage and Business an- gels, the first investors acquired an equity interest in conjunction with first round of financing at the end of

• 2003. the investors, mostly renowned experts from

the shipping industry, hold an interest in skysails through the skysails-Beteiligungs-Gbr. skysails conducted its second round of financing in 2004 with the help of the oltmann Group. the pri- vate investors from this second round hold an interest in skysails GmbH & Co. kG through the companies skysails erste Beteiligungs GmbH & Co. kG and skysails Zweite kapitalgesellschafter GmbH & Co.

• kG. the general partner of these two companies

is skysails Verwaltungs GmbH. the managing di- rectors are andré tonn, who is also the managing director of the Jan luiken oltmann Gruppe GmbH & Co. kG, and monika oltmann. the capital raised in this second round of financing was partially co- financed with funds from the German Credit institute for reconstruction (kfW). skysails held its third and final round of financing in cooperation with the leer-based oltmann Group in

• 2006. all together skysails was provided with 13

million euros of equity capital from selected strategic and private investors. these funds will be used to fi- nance the completion of product development of the skysails-system for cargo ships. alongside this, the sales and service networks will be established and a manufacturing capacity and logistics created. the third, and for private investors last, round of skysails financing was completed as scheduled on 31 December 2006. private investors can no longer acquire an equity interest in skysails.

4 f i n a n C i n G

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T U R N W I N D I N T O P R O F I T

*effective load the effective load of the skysails propulsion indicates the maximum tractive force of the system in the direction of the ship’s course under optimal conditions. the effective load is substantial when dimensioning the skysails-system as it can be directly compared to the thrust required by the ship to reach its cruising speed. since ships differ in construction and operate on very diverse routes, it is difficult to make a general statement regarding the propulsion power of the skysails-system. However, and in order to give an indication of the system’s propulsion power, skysails states its effective load under standard conditions. the system’s power is determined for a clearly defined system status at a specified point in time. this system status is defined as follows: skysails standard conditions system variable value Wind speed 12.8 m/s (25 knots) true wind direction 130° ship speed 5.1 m/s (10 knots) sea state 2 propeller efficiency degree 0.6 towing kite flight mode dynamic the skysails’ effective load under standard conditions is specified for an exemplary vessel which cruises at a speed of 10 knots at a true wind course of 130°. the wind speed is 25 knots, waves are up to 60 cm high, and the towing kite is maneuvered dynamically. the determination of the system’s propulsion power under standard conditions is based on field testing results and theoretical calculations.

SkySails GmbH & Co. KG Veritaskai 3 21079 Hamburg Germany Phone: +49 (0)40 – 702 99 – 0 Fax: +49 (0)40 – 702 99 – 333 Email: contact@skysails.com www.skysails.com