MAN Diesel & Turbo

1. MAN Diesel & Turbo GO BU-L Seminar 2013 How to competewithWartsila X62/72/92 series Michael Jeppesen Promotion Manager Sales & Customer Support Marine Low Speed Disclaimer All data provided on the following slides is for information purposes only, explicitly non-binding and subject to changes without further notice.

2. GO BU-L Seminar 2013How to competewithWartsilaX-Series

3. GO BU-L Seminar 2013How to competewithWartsilaX-Series

4. Marketing, Engine Layout, ComparisonsWartsila’s promotion methods • W has an aggressive marketing policy, and they are very active. • W is “the little brother”, so in their presentations they are making comparisons and are constantly trying to make their products appear better than ours. They often present our products in the worst case scenario and compare it with their products in the best case scenario. • Tolerances on performance data are generally smaller than ours. • In earlier years B&W Diesel was “the fast follower”, now with our dominant market position, it is the other way around. • W is still giving cash benefits and royalty free

5. Market, Engine Layout, ComparisonsMDT G- and S-engines, Wartsila X-engines

6. Market, Engine Layout, ComparisonsMDT G- and S-engines, Wartsila X-engines

7. Market, Engine Layout, ComparisonsMDT G- and S-engines, Wartsila X-engines • With the new X-series Wartsila is claiming • Better fuel economy • Better fuel flexibility • Better steam capacities • More compact engines, lower weight • Less electrical aux. power requirement Wartsilaila X-72 comparison MDT G70 ME-C9.2 Comparison

8. GO BU-L Seminar 2013How to competewithWartsilaX-Series

9. Installation Aspects Dimensions, Weight D H1 C B * To exh. valve ** Normal vertical lift *** Length, 6 Cyl. **** Weight in Tonnes 06.02.2013

10. Installation AspectsPropeller / engineoptimisation parameters • MDT can offer complete propulsion systems • MDT Alpha can offer specialist assistance with aft ship design Overhaulheight Tip clearance Propeller diameter Cl. crankshaft Base line

11. The SteamChallengewithincreasedengineefficiency Fuel consumption is reduced by • Increasing the Max- and Mean effective combustion pressures • Gas fuel operation • Engine deration • High efficiency turbochargers • Tuning methods • Slow steaming This causes • Lower exhaust gas volume and temperature from the main engine • Lower steam capacity Consequence • The traditional economiser may not be able to produce enough steam • The oil fired section must be started

12. The SteamChallengeNew trends for solutions • Installation of conventional turbocharger(s) • Opening the EGB valve at any load • Increasing ΔT over the economiser or lowering the steam pressure • Utilizing the aux. engine exhaust gas in the economiser • Installing individual aux. engine exhaust gas economisers • Electrical heaters for steam production • Other WHR solutions

13. GO BU-L Seminar 2013How to competewithWartsilaX-Series

14. Reference lists G – engines, Firm orders, February 2013 RASA/ Dept LSP 22.02.2013

15. G engine – Tier II Reference list Firm orders RASA/ Dept LSP 22.02.2013

16. Reference lists X - Engines, Firm orders, November 2012 LSP/ RASA 06.02.2013

17. Reference listsS90ME-C9.2, Firm orders, February 2013 Total no. of S90ME-C9.2 engine is 106 All data provided on the following slides is for information purposes only, explicitly non-binding and subject to changes without further notice. LSP/ RASA 31.01.2013071.2011

18. Propulsion13,000 - 14,000 teu container vessel, 23 kn

19. Market Shares ContractingFour Quarter Moving Ships Larger than 2,000 DWT/GT

20. GO BU-L Seminar 2013How to competewithWartsilaX-Series

21. Recent newbuildingprojectsA goodexample • Technomar Shipping, 2 + 2 x 6600 TEU C/V at Hanjin, Korea • Main engine alternatives: 8G80ME-C9.2 >< 8RT-Flex82T • Initial project status: • Owner generally in favour of MAN B&W engines • Hanjin was asking 1.200.000 USD more for the G-engine • HHI Licensee probably subsidising the RT-Flex82 engine • Owner could accept MDT engine, only if price gap narrowed to 300.000 USD • LSP Promotion action: • Meetings in Athens with owner, intense correspondence and contact via local office in Athens. • Incentives of spare parts credit line, extra warrantee, free ME training, LEP QA, etc. • Pressure at HHI and Hanjin from local Korean MDT office. • We got the order !!

22. Recent newbuildingprojectsA bad example • Ariston Navigation, 6 + 4 x Seahorse 35 B/C at Jingling SY, China • Main engine alternatives: 5S50ME-B9.2 >< 5RT-Flex82T • Gensets alternatives: Yanmar >< MAN B&W Holeby • Initial project status: • Owner generally in favour of MAN B&W engines, but very demanding on equipment selection conditions • Wartsila very strongly promoting their products • LSP Promotion action: • Several meetings in Athens, intense correspondence and contact via local office in Athens. We were a confident “winner” and comfortably in the lead. • Extensive Incentives for both main engine and gensets. • We lost the order !!.... • .........To WartsilaDoosan due to price reduction, royalty reduction and other unknown reasons.

23. How to competewithWartsilaX-SeriesConclusions • Our G- and Mrk. 9 engines are very competitive • (SFOC, steam capacities, dimensions, weights, DF, TIER III, ref. lists, 90 % market share) • We must focus the cooperation in our GO by • Close communication • Local support from GO to main office and vice versa • We must constantly be alert, observe the actions from W • Counteract price differences with Incentives, package • solutions and strong support to our licences. • We have the best product and a very strong brand • We must strive to maintain this position with a positive and • professional attitude in our promotion activities • This is how to compete (beat) Wartsilas X-series !!

24. Thank You for Your Attention • All data provided in this document is non-binding. This data serves informational purposes only and is especially not guaranteed in any way. Depending on the subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend on the particular characteristics of each individual project, especially specific site and operational conditions.