Juha Koskela, 30.8.2011

ABB in Marine Industry A short introduction

© ABB Month DD, YYYY | Slide 1

ABB Marine overview

Global leader in power and automation Leading supplier of  Electric power plant & propulsion    Azipod @ propulsors and thrusters Drives for offshore oil drilling process Automation and electrification for Harbor cranes Market leader  Cruise ships  Ice breakers    Offshore supply vessels LNG carriers Oil drilling vessels Global operations  Presence in > 20 countries  Main business centers in Finland, Norway, China and Singapore © ABB Group May 1, 2020 | Slide 2

Moving people and goods safely and efficiently

You will find ABB marine solutions  opening new seaways between Europe and Asia  powering the world’s largest and most energy-efficient cruise ships  reducing fuel cost by 20% in ferries in Japan  powering LNG carriers into new era of energy efficiency  installed in more than 125 offshore drilling rigs and jack ups © ABB Group May 1, 2020 | Slide 3

ABB Marine business is based on electric propulsion

• Conventional mechanical propulsion • Diesel engines, gearboxes and controllable pitch propellers for propulsion • Separate auxiliary engines for electricity generation for ship use • Still main propulsion concept in cargo vessels • Electric propulsion • Diesel-Generator sets to produce electricity to common grid for propulsion and ship use • Variable speed drives to rotate fixed pitch propellers • Commonly used in Cruise vessels, LNG tankers, Off-shore vessels and Ice breaking vessels due to reduced fuel oil consumption, lower emissions and increased pay-load © ABB Group May 1, 2020 | Slide 4

Innovation is part of our tradition

New ideas and proven performance 1930’s ABB’ s first electric propulsion systems 1950’s-70’s DC technology based propulsion systems for ice breakers 1983 ABB delivered the world’s first AC electric propulsion system, which remains the leading technology today 1987 1990 First order of electric propulsion system for cruise liners, which lead to electric propulsion penetration to many new ship types Delivery of the first Azipod propulsion system to water way service vessel “Seili” 1995 2011 Breakthrough order for cruise vessel with Azipod propulsion (over 200 units in operation today) ABB launched onboard DC Grid © ABB China May 1, 2020 | Slide 5

Major changes over a vessels life time

New regulations, new technology, a new generation

Key business drivers:

 Energy efficiency  Safety and environmental sustainability  Oil and gas exploration in offshore, and especially in deep water and arctic areas  Global increase in container transportation © ABB Group May 1, 2020 | Slide 6

Market Growth

The market for electrical propulsion will grow significantly 5000 25 % 4000 3000 2000 1000 20 % 15 % 10 % 5 % 0 2003 05 07 09 11 13 15 17 19

Ordered vessels over 2000GT by vessel number, (ABB Estimate)

0 %

Share of vessels with electrical propulsion, % (ABB Estimate) Electrical propulsion share of vessels by number, % (ABB estimate based on Diesel&Gas Turbine Worldwide 2010)

© ABB Group May 1, 2020 | Slide 7  Electric propulsion has become the technology of choice for several vessel segments due to the fuel efficiency and low emissions.  Electric propulsion will emerge as the solution for new merchant vessel segments, e.g.: container, dry cargo vessels.

 Electrical or hybrid propulsion vessels are projected to represent 20% of vessel numbers in 2020

Marine solutions

Optimized performance Vessel information and control Proven systems for marine applications Quality components with service and support available throughout their lifecycle.

Smart control systems Specialized for each vessel type On average 90% ABB products © ABB Group Month DD, Year | Slide 8

Smart control systems

From data to decision support Vessel information and control Proven systems for marine applications Quality components with service and support available throughout their lifecycle.

Fleet management reporting systems Smart Advisory systems control systems Specialized for each vessel type ABB products © ABB Group Month DD, Year | Slide 9