Meyer Turku Company Presentation

Meyer Turku ja yhteistyöverkostot

7.11.2018 Ville Laaksonen Executive Board Member, Outfitting 2

18.10.2017 Business environment Leisure Market Cruise Vacation Ship Operation Ship Building

Value for money Guest satisfaction Ticket revenue Vacation experience Financing Onboard revenue Marketing & Sales Project execution Operational efficiency Environment Supply chain management Lifecycle cost Product innovation Energy efficiency Capital cost 7.11.2018 4 Passenger Growth 2000-2025

40,00

2,60 35,00 3,70

30,00 2,10 2,90 25,00 12,00 Rest of the World 1,61 2,09 Asia 9,80 20,00 1,13 Passengers 1,17 Europe 7,50 0,34 Mio. Mio. 15,00 0,76 5,70 North America 3,20 10,00 0,780,12 18,10 2,00 14,90 12,80 10,00 11,10 5,00 6,70

0,00 2000 2005 2010 2015 2020 2025

Quelle: CLIA/Ocean Shipping Longterm stable passenger development Consultants 5 The back bone of Meyer Turku

Fire safety and other statutory items Comfort, Noise Delivery on time and quality Stability, Weight Design innovations Concept Design Energy efficiency Hydrodynamics Project management&execution

18.10.2017 6 Fixed Order Book extending until 2024

Ship Delivery Owner LNG

Cruise ship New Mein Schiff 1 2018 TUI Cruises (110 000 GT)

Cruise ship New Mein Schiff 2 2019 TUI Cruises (110 000 GT)

Cruise ship for Costa Crociere 2019 Carnival X (180 000 GT)

Cruise ship for Carnival Cruise Line 2020 Carnival X (180 000 GT) 7 Fixed Order Book extending until 2024

Ship Delivery Owner LNG

Cruise ship for Costa Crociere 2021 Carnival X (180 000 GT)

Cruise ship for Carnival Cruise Line 2022 Carnival X (180 000 GT)

Cruise ship for RCCL (210 2022 RCCL X 000 GT) +Fuel cell

Cruise ship Mein Schiff 7 2023 TUI Cruises (110 000 GT)

Cruise ship for RCCL (210 2024 RCCL X 000 GT) +Fuel cell

7 Growth with fixed orderbook 450 400 1 large ~190.000 GT 350 1 large ship every RCI ~190.000 GT 8 months Allure ship every 300 of the 1 Costa ship 10 months Seas with (Oasis ~180.000 GT 250 2 ships with

[Thousand GTs] [Thousand Class) per year in total 17000 200 150.000 GT 1 TUI ship per year 15000 volume 150 100.000 GT per year 100 9000

Annual Annual 7000 50 5000 0 2010 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Ship deliveries: MS 4 MS 5 Tallink 1 NMS 1 NMS 2 Carnival 1 RCI 1 MS 7 RCI 2 MS 6 Costa 1 Costa 2 Carnival 2 Employment effect (FTE persons) including the shipyard and network companies 7.11.2018 9 Floating Smart Cities up to 10 000 persons LNG Propulsion Air Conditioning Spa & Fitness High Voltage Power System & Heating Large modern Theatres Electrical Power Plant Exhaust Cleaning Swimming pools Heat Recovery Systems Stabilizers (Wings) Fuel Treatment Systems Child care for different ages Water Desalination Systems Cold provision rooms Waste Water Treatment

Bridge IP Telephone System Ship Safety Center On-Board GSM WLAN everywhere Hospital Fire fighting systems phone tower Crew Mess & Recreation Areas Fiber Optic Network Satellite Communication IP Video & TV Room Booking System Something world‘s first: Fuel Cells e.g. 270 with robotic screens Cruise vessel cost distribution

Materials Turn - Key Own Production Subcontracting Others

7.11.2018 11

Outdated and in many cases Production increasing broken machinery possibility to build a new, data based ship assembly 150 kGT factory. We are getting ready for 400 kGT/year increasing international competition from mostly government owned competitors.

Investment programme 200 M€

Steel storage and pre-treatment line (MT) Panel line (MT) Factory ICT early 2018 early 2019 by the end of 2018

Plate cutting line (MT) Gantry crane (MT) Social premises 2018 early 2018 by the end of 2018

Profile cutting line | Profile materials storage Hull production logistics And more coming… early 2019 early 2018 7.11.2018 Ship building in Turku has a future • Focus on special ships as cruise ships and ferries  no overheated markets!

• Complex non-commodity products demanding ◦ Integrated systems, safety, reliability and energy efficiency ◦ Project reliability and time schedule adherence

• Customers with appreciation for European Quality

• High demands for flexibility ◦ Product is still optimized during design and production  Advantage towards Asian competitors

• Leveraging the strength of an established environment of leading suppliers in FIN and D ◦  Advantage towards Asian competitors

One of the few ways to stay competitive with intelligent and flexible > manufacturing in high wage countries in Europe 7.11.2018 Meyer Turku in the region • 1 600 employees direct employed, at least 20 000 persons indirectly through the maritime network

• One of the biggest tax payers in the region

• High fraction of skilled work for blue-collar craftsmen

• High-tech jobs for creative, professional, flexible academics

• 80% of value chain „Made in Finland“

• Positive influence on Finnish exports

• Iconic products – a show case of the capabilities of Finnish industry

7.11.2018 [email protected]

Kiitos!

7.11.2018 Meyer Turku Oy

P.O. Box 666 Telakkakatu 1 FI-20101 Turku, Finland

Tel. +358 10 6700 [email protected] [email protected] www.meyerturku.fi

7.11.2018