Vilnius September 23, 2016 Henrik Badin CEO Disclaimer This - - PowerPoint PPT Presentation

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Vilnius September 23, 2016 Henrik Badin CEO Disclaimer This - - PowerPoint PPT Presentation

Sc Scans nshi hip p Hol oldi ding AS ASA Vilnius September 23, 2016 Henrik Badin CEO Disclaimer This presentation (the Presentation) has been produced by Scanship Holding ASA ("Scanship" or the "Company")


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Sc Scans nshi hip p Hol

  • ldi

ding AS ASA

Vilnius

September 23, 2016

Henrik Badin – CEO

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This presentation (the “Presentation”) has been produced by Scanship Holding ASA ("Scanship" or the "Company") exclusively for information purposes. This Presentation includes forward-looking statements regarding Scanship, including projections and expectations, which involve risk and

  • uncertainty. Such statements are included without any guarantee as to their future realization. Although Scanship currently believes that

the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered a long with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial

  • r legal changes in the markets in which Scanship does business, and competitive developments or risks inherent to the Company’s

business plans. Many of these factors are beyond Scanship’s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future accuracy of the forward-looking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors,

  • missions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or

indirectly from the use of this Presentation. By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial information, as well as other publicly disclosed information. Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else.

Disclaimer

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Cruise Industry

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Cruise Industry in 2016 – fact sheet

11,2 11,4 12,2 … 13,2 14,5 15,4 16,3 16,8 17,9 18,1 19,5 20,4 21,5 22,1 23,6 26,0 27,4 29,6 31,2 31,7

Passenger Development

(million passengers)

Cruise Fleet

315 ships

Passenger Cruising

23,6 million

Total Economic Impact

$120 billion

53 % 25 % 5 % 3 % 14 % US Europe Australia China Others

Passenger Origin

34 % 30 % 17 % 9 % 6 % 4 % Caribbean Europe Others Asia Australia Alaska

Capacity Deployment Industry Capacity 2016 = 505,000 lower berths

What about China ? What about China ?

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Cruise Space 2016 – largest players

185 cruise ships ≈ 420,000 berths ≈ 83% of market ≈ 38% growth with firmed newbuilds until 2021

capacity 5 year newbuld plan current berth capacity

+

Will NCL allow MSC to pass in size during the next 5 years ?

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18 newbuilds $14 billion 70,000 berths 11 newbuilds $8,2 billion 40,000 berths 4 newbuilds $3,5 billion 13,000 berths 8 newbuilds $7,9 billion 38,000 berths 8 newbuilds $6,6 billion 20,000 berths 3 newbuilds $1,8 billion 8,400 berths 4 newbuilds $1,2 billion 3,800 berths 12 newbuilds $3,5 billion 9,000 berths

68 newbuilds ≈ $47 billion of aquisitions ≈ 200,000 berths

Cruise newbuilding market until 2021

When will NCL confirm new orders ? Market rumorus: 50+ projects in the expedition / luxury segment TPG with partner injected $500m to strenghten balance sheet = to build more ships ? (TPG took NCL public) Rumours speaks of 22 newbuilds and a total investment of $15 billion Carnival placed an order for 2+2 newbuilds September 23, 2016 in addition

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In brief Company structure

About Scanship

  • Cruise industry greentech company
  • Revenue driven by industry growth, adoption of

new environmental policies, need for efficient waste handling aboard.

  • Headquartered in Norway with subsidiaries in

USA and Canada for sales and service and Poland for production

  • FY2015 - Revenue NOK200m, EBITDA NOK

11,3m and Net Pre-Tax NOK 7m

  • Orderbook 2Q16. NOK 200m
  • New game changing technologies in pipeline

R&D Sales & marketing Engineering & Design Procurement Installation Manufacturing & assembly (outsourced) Commissioning Aftersales Service, spares & chemicals

Business model scope of services Financials Q performance

15% 20% 25% 30% 35%

  • 10

20 30 40 50 60

Revenue & Gross margin

Project Aftersales Margin %

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Company offering

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Scanship AWP – NCL & RCCL newbuilds

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Scanship Waste Mgmt. System

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Scanship references – with the biggest players

AWP newbui uild ld Waste mgmt. newbui uild ld 7 4 1 7 9 5 10 11 8 8 21 5 6 3 2 23 12 24 22 26

  • ResidenSea, SilverSea Cruises, Viking Ocean Cruises, TUI Cruises, Jamaica

Airport Authority, Paul Gauguin Cruises for newbuilds –total 10 newbuilds

  • Discovery Sun, Regent Seven Seas Navigator, Hurtigruten, Star Cruises;

Color Line, Paul Gauguin for retrofits – 8 retrofits

  • Number of Scanship Total Clean Ship Systems – 4 newbuilds

Other

Waste mgmt. retrofit fit AWP retrofit fit

1) Scanship has delivered systems to previous NCL vessels that have been sold explaining higher number of deliveries than current NCL fleet

Customers # of system installed [total system] Main Projects

2) Includes 2 land based waste managment plants at airports in Jamaica 2) 1)

  • Retrofit of AWP for Alaska of the entire NCL fleet between 2002-06,

Retrofit on Oceania Sirena in 2016

  • On all NCL newbuilds from 2004 including ship class Jewel, PoA, Epic,

Breakaway (from 2010) and Breakaway Plus (from 2013)

  • 6 newbuilds with total clean ship systems
  • AWP Retrofit on Serenade of the Seas for Alaska in 2004
  • AWP Retrofit of Voyager Class and Vision class prepared for Helcom 2010 -

2014

  • Total Clean ship on Freedom Class 2005-08 & Waste on VI/RP 1996-98
  • AWP on Quantum class (Helcom) & Oasis class (Alaska) from 2012

[ ] [ ] [ ] [ ] [ ]

  • Carnival Destiny & Conquest Class, 7 newbuilds 1995-04
  • HAL’s Vista Class, 7 newbuilds & Cunards QM2 1999-05
  • P&O Arcadia 1999-05 and Costa newbuilds, 5 newbuilds 2003-09
  • Foodwaste retrofits Costa Tropical 2001 & Queen Elisabeth 1995
  • Carnival Vista in in service 2016 with Scanship AWP
  • Waste mgmt systems on the Musica Class – 4 newbuilds 2005-12
  • Total Clean ship systems with waste mgmt & AWP on Fantasia Class –

4 newbuilds 2006-2013

[ ] [ ] [ ] [ ]

28 5 26 48

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NCL Brekaway Class RCCL Quantum Class RCCL Harmony (Oasis) Class TUI Mein Schiff Class Genting Dream Class Viking Star Class CCL Vista Class Silver Muse Class MSC Meraviglia Class

Scanship orderbook - 21 newbuilds until 2020

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Shipyard orderbook until 2021

20 newbuilds $17,9 billion 78,000 berths 25 newbuilds $12,3 billion 54,000 berths 12 newbuilds $10,7 billion 52,000 berths 5 newbuilds $1,2 billion 5,000 berths 6 newbuilds $4,7 billion 13,000 berths

Fwd project revenue opportunity for Scanship ≈ NOK 500 million in existing yard orderbook

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AWP retrofit growth opportunity

  • High tendering activity expected to bring
  • rders - higher industry focus
  • IMO decision on Helcom implementation

is expected to re-boost demand

  • Oceania Cruises placed an order with

Scanship for a Helcom compliant system

  • n the Oceania Sirena
  • AWP retrofit cruise market size is

estimated to be ~ NOK 2.3bn

382 116 128 138

Total Already installed AWP Excluded Retrofit potential

AWP retrofit potential

(# of vessels)

~ NOK 2.3bn

Fwd project revenue opportunity for Scanship ≈ NOK 2,3 billion in retrofits

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New technology to “fuel” growth

  • Waste to energy system based on microwave

assisted pyrolysis

  • More compact than conventional waste

management systems

  • Will operate unrestricted 24/7/365 as it will not

have a flue gas, Zero discharges to the sea,

  • ther than clean water
  • Significant carbon capture in char, with revenue
  • pportunities
  • Expected attractive ROI for ship-owner will drive

growth within newbuilds, retrofits and new markets

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Scansh nship ip Holding ng ASA

Lysaker Torg 12 P.O. Box 465 1327 Lysaker Norway Phone: +47 67 200 300 E-mail: mail@scanship.no www.scanship.no