Improvements in Podded Thrusters Bollard pull measurements & market response to Azipod DZ thrusters

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DP ASIA CONFERENCE, 28 JUNE 2018 Improvements in Podded Thrusters Bollard pull measurements & market response to Azipod DZ thrusters Kimmo Kokkila, Product Manager, 2018 3AFV6055900 A

Azipod gearless thruster family Power range 1 22 MW July 2, 2018 Slide 2

Azipod gearless thruster References from all vessel segments July 2, 2018 Slide 3 3AFV6055900 A

Azipod gearless thruster Experience 27 years 5,900 megawatts 14 million operation hours July 2, 2018 Slide 4 3AFV6055900 A

Azipod gearless thruster Azipod Global Service Azipod factory or service workshop ABB Marine Service Center Azipod Global Service headcount: >100 persons >50 % of Azipod installed base covered by maintenance agreements Global 24/7 Technical Support Remote Diagnostic Services (RDS) available July 2, 2018 Slide 5 3AFV6055900 A

Azipod D gearless thruster New Azipod D product series Open (DO) and ducted (DZ) propellers Power range 2 7.5 MW Public launch in Apr 2015, 1st contract in Dec 2015 July 2, 2018 Slide 6 3AFV6055900 A

Azipod D gearless thruster Complements the Azipod family Azipod C Azipod D Azipod ICE Azipod VI Azipod XO Azipod XL Power (MW) 1 4.7 2 7.5 2 5 6 17 8 22 14 22 Cooling Sea Air + Sea Sea Air Air Air Motor type Permanent magnet (PM) PM or induction PM Synchronous Synchronous Synchronous Max ice class 1A PC 5 PC 3 PC 2 PC 5 Max thrust 93 t 130 t July 2, 2018 Slide 7 3AFV6055900 A

Azipod D motor technology More power with hybrid cooling Frame size Azipod DZ Azipod CZ Voltage 980 2.4 MW 1.9 MW 690 V 1100 3.1 MW - 690 V 1250 4.2 MW 3.3 MW 690 V 1400 5.5 MW 4.7 MW 3000 V / 690 V 1600 7.5 MW - 3000 V July 2, 2018 Slide 8 3AFV6055900 A

Azipod D gearless thruster Reliability the least amount of critical components in the market 0 Gears 3 Bearings 2 Gears 10 Bearings July 2, 2018 Slide 9 3AFV6055900 A

Six Azipod CZ configuration Full-scale bollard pull test Exceeded contractual values about 10%

Introduction Subject vessel is DP3 accommodation / work barge The propulsion system 115.5 m in length Breadth of 34 m and depth of 9.1 m. The maximum draft is 6.1 m The vessel was built in China 2017 Hull shape is basic pram type Three thrusters in the stern/bow respectively Side thrusters positioned ahead of center thruster Bollard pull requirement was 30 tons per thruster July 2, 2018 Slide 11

The thruster selection Specification called for a thruster w/ 1.8 MW capacity to achieve the 30 t bollard pull The vessel has 6 thrusters, three in the bow and three in the stern Side thrusters positioned ahead of center thrusters ABB was selected based on performance predictions Based on reference data it concluded there could be a 3-4% thrust loss for the side thrusters due to the configuration As a result the power rating was increased to 1.9 MW AZIPOD CZ980 Pushing podded thruster with a ducted propeller PM motor Prop diameter 2.4 m RPM is 301 at max power of 1.9 MW July 2, 2018 Slide 12

Bollard Pull Test at COSCO Zhoushan shipyard

Bollard Pull Test Preparations ABB recommendations based on ITS2002 Bullard Pull trial code Current, waves, water depth, water density Testing protocol, time and frequency Load cell arrangement and calibration Towing length Orientation of the vessel July 2, 2018 Slide 14

Bollard Pull Test Conditions COSCO Zhoushan Shipyard July 26 th 2017 Measured bollard pull every 30 seconds over 10 minute 4 tests completed as follows, 1) Centre pod in the bow (#5) 2) Side pods in the bow (#4 and 6) 3) Centre pod in the stern (#2) 4) Side pods in the stern (#1 and 3) Beautiful summer day in Shanghai! Testing the thruster in the bow! July 2, 2018 Slide 15

Bollard Pull Test Conditions Ocean Currents For Azipod thrusters 4-6 the towing line was attached to the bow with the vessel backing out. For Azipod thrusters 1-3 the towing line was attached to the stern. Current speed and direction was measured throughout the test Speed 0.3-1.1 kts Direction relative to thruster ranging from ahead/port side stern/port side July 2, 2018 Slide 16

CFD Analysis to compensate varying current impact Impact of Ocean Current at 1.8 MW Power Current direction Current velocity (m/s) Pod open water thrust (t) From the front 0.1 33.1 1 30.1 From the rear 0.1 33.9 1 37.6 Side 0.1 33.2 Opposite side 0.1 33 1 kn current have about 2.5 tonnes impact on BP values July 2, 2018 Slide 17

Summary of Results with Thrust Deductions for Current Impact Pod # Static bollard pull (t) Current Impact (t) Adjusted Static BP (t) 1 34.1-2-2.5 ~ 32.1 2 37.2-2-2.5 ~ 35.0 3 34.1-2-2.5 ~ 32.1 4 33.1 +0.1-0.5 ~ 33.3 5 34.7 +0.5-1 ~ 35.5 6 33.1 +0.1-0.5 ~ 33.3 Contractual bollard pull value 30 t was clearly exceeded with each Azipod thurster

Conclusions 6 5 4 1 3 2 Bollard pull results in line with estimations Seldom opportunity to test BP of this size vessel CFD used to estimate influence of varying current Current adjusted static BP estimates very close to original CFD estimates Adjusted BP test results (including the current effect) indicate that the side thrusters (#1, #2, #4, and #6) produced a thrust that was 5-7% lower than the center thrusters (#2 and #5) Azipod Thruster # Static bollard pull (t) Current Impact (t) Adjusted Static BP (t) BP Estimate from CFD 1 34.1-2-2.5 ~ 32.1 33.4 2 cntr 37.2-2-2.5 ~ 35.0 3 34.1-2-2.5 ~ 32.1 33.4 4 33.1 +0.1-0.5 ~ 33.3 33.4 Contractual bollard pull value 30 t was clearly exceeded with each Azipod thruster 5 cntr 34.7 +0.5-1 ~ 35.5 6 33.1 +0.1-0.5 ~ 33.3 33.4 July 2, 2018 Slide 19

Azipod DZ feedback from 1 st operating vessel Multipurpose Rescue Tug for Guangzhou Salvage Bureau

Azipod DZ operation experience Rescue & salvage tugs, deliveries 2017-2018 for Guangzho, Shanghai and Yantai Salvage Bureaus 3 vessels now in operation 2 x 4.2MW Azipod DZ1250P July 2, 2018 Slide 21 3AFV6055900 A

Azipod DZ operation experience Rescue & salvage tugs, deliveries 2017-2018 for Guangzho, Shanghai and Yantai Salvage Bureaus 2 x 4.2MW Azipod DZ1250P July 2, 2018 Slide 22 3AFV6055900 A

Azipod DZ operation experience Feedback from 1st Azipod DZ vessel in operation by Guangzhou Salvage Bureau Feedback from 1st Azipod DZ vessel Performance exceeded expectations on sea trial for both DP performance and transit speed Captain Shaohua Liu (Guangzhou Salvage Bureau): We are really impressed with the vessel s performance. Response time and maneuverability, both of which are critical in our operations, are excellent. Less power was required than we expected for a given function. The Azipod D has exceeded our expectations by far. No major warranty claims for any of the three operating vessel now after 4-5 months of operation. July 2, 2018 Slide 23

Azipod D reference projects

Azipod D references Offshore vessels, deliveries 2018, Norwegian owner 2 vessels (1 delivered) 2 x 4.2MW Azipod DZ1250P July 2, 2018 Slide 25 3AFV6055900 A

Azipod D references Rescue tugs, deliveries 2017-2018 for CN salvage bureaus 3 vessels in operation 2 x 4.2MW Azipod DZ1250P July 2, 2018 Slide 26 3AFV6055900 A

Azipod D references Scenic Eclipse the first Polar Class cruise ship Scenic Eclipse Discovery yacht owned by Scenic Cruises Ice class PC 6 by Bureau Veritas 2 x 3 MW Azipod DO1250A L 166 m, B 21.5 m Able to navigate in both Arctic and Antarctic waters* Scheduled to start operation in August 2018* *Source and image credit: Scenic July 2, 2018 Slide 27

Azipod D references Endeavor class the world s largest Polar Class expedition yachts Endeavor class Three expedition yachts for Crystal Cruises Ice class PC 6 by DNV GL 2 x 5 MW Azipod DO1600A L 160 m, B 23 m Will cruise in the Arctic; then follow the route along the coast of the Americas and Europe to Antarctica during winter* First passenger ships to be classified according to the new DNV GL rules* Delivery scheduled 2019 onwards* *Source: MV Werften July 2, 2018 Slide 28

Azipod D references Ritz Carlton Yacht Collection Ritz Carlton cruise yacht 2 x 4.4 MW Azipod DO1250P DNV GL LOA 187.5 m, B 23.8 m, S 18 kts, 298 passengers Captain Erik Bredhe, Marine Operations Director at The Ritz-Carlton Yacht Collection: We wanted to select the critical systems and equipment from among the most experienced suppliers known for their reliability and quality. The obvious choice for power and propulsion was ABB, and we expect them to meet and exceed our quality standards as partners for many years Delivery scheduled 2019 July 2, 2018 Slide 29

Azipod D references National Geographic Endurance Lindblad Expeditions cruiser Polar expedition cruiser owned by Lindblad Expeditions PC 5 and Silent E notations by DNV GL 2 x 3.5 MW Azipod DO1400A-PC5 L 120 m, B 20 m, 126 passengers Delivery scheduled 2020 from Ulstein Verft shipyard July 2, 2018 Slide 30

Azipod D references Undisclosed contracts Other recently signed contracts Yacht, 2 x Azipod DO1100A Construction vessel, 3 x Azipod DZ1250P, European owner July 2, 2018 Slide 31

Full-scale bollard pull test & experience with 1st Azipod D units Summary Full-scale BP test results according to estimates 1 st Azipod D vessel in operation exceeded expectations Azipod D series launched 2015 have been successful in challenging market July 2, 2018 Slide 32 3AFV6055900 A

Azipod D Questions..? Thank you! July 2, 2018 Slide 33 3AFV6055900 A