Welcome To Methanol Technical Workshop 20th March 2018

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Welcome to Methanol Technical Workshop 20thMarch 2018 in CopenhagenThis technical workshop is a cooperation between Methanol Institute and MDTdesigned to address options for ship owners in efforts to comply with IMO regulationson emission reduction strategies with methanol dual-fuel technologyKjeld AaboDirectorNew technologiesPromotion 2 strokeMAN Diesel & Turbo-Methanol Technical Workshop, Copenhagen 20.03.2018 1

Methanol Technical Workshop,Copenhagen 20th March 2018 – Programme8.30 – 9.00Registration and Coffee9.00 – 9.15Welcome9.15 – 9.35Introduction to MDT andMDT 2-stroke engines and applicationsKjeld AaboService experience and latest enginedesign for Methanol applicationLars Bay9.35– 10.05Gregory DolanKjeld Aabo10.05 – 10.25 CoffeeMAN Diesel & Turbo-Methanol Technical Workshop, Copenhagen 20.03.2018 2

Methanol Technical Workshop,Copenhagen 20th March 2018 – Programme10.25 – 10.45 FGSS system for Methanolhandling onboardRoberto Camelli10.45 – 11.05 Emission test and TIER III complianceRene S. Laursen11.05 – 11.25 Evaluation of MethanolDaniel Sahnen, Dipl.-Ing.Research andDevelopment (RD)MEYER WERFTGmbH & Co. KG11.25 – 12.10 Lunch – (and walk to DA/DRC)12.10 – 12.30 Methanol vessel operator safety trainingat Diesel Academy12.30 – 13.30 Presentation of test engine4T50ME-GI/ LGI atthe Diesel Research CentreMAN Diesel & Turbo-Dan PorupLars BayMethanol Technical Workshop, Copenhagen 20.03.2018 3

Volkswagen Group12 brandsMAN Diesel & TurboGGKCompany Presentation 2017 4

MAN GroupKey Figures 2016MAN SEBusinessareasDivisionsInvestmentsCommercial VehiclesPower EngineeringMANTruck & BusMANLatin AmericaMANDiesel & TurboRenkRevenue ‘16: 9.2 bnRevenue ‘16: 0.7 bnRevenue ‘16: 3.1 bnRevenue ‘16: 0.5 bn(76 %)Sinotruk (25.0 % 1 share), Scania (17.4 %*)* Voting rightsThe MAN Group in 2016: 13.6 billion revenue, 53,824 employeesMAN Diesel & TurboGGKCompany Presentation 2017 5

Design and production networkMAN Diesel & Turbo sites in Europe and adHamburgBangaloreBerlinOberhausenVelká BítešDeggendorfAugsburgSaint NazaireZürichDiesel PlantsTurbo PlantsDiesel & Turbo PlantMAN Diesel & TurboGGKCompany Presentation 2017 6

TurbomachineryWide-ranging product range for various industrial applications Compressors, expanders, gas turbinesand steam turbines for the oil & gasindustry, the process industry andpower generation Full machinery train competenceincluding compressor, drive andexpander Reactors for the chemical andpetrochemical industry, specialapparatus for scienceMAN Diesel & TurboGGKCompany Presentation 2017 7

Power PlantsBroad portfolio for engine-based diesel and gas power plants Two-stroke and four-stroke enginesfrom 1,100 kW to 77.500 kW Diesel and gas power plants up to 300MW Combined heat and power plants, motorcombined cycle Excellent fuel flexibility: diesel, heavyfuel oil, biofuels, gas, dual fuel incl.Methanol. Operation and maintenance, completeservices Expandable, modular conceptsMAN Diesel & TurboGGKCompany Presentation 2017 8

Engines & Marine SystemsComprehensive product portfolio for marine applications Two-stroke and four-stroke engines formarine applications Output range from 450 kW to 82.4 MW Marine GenSets from 450 kW to 11.2 MW Fuels: heavy fuel oil, diesel, gas, dual fuel Propellers and complete marinepropulsion systems incl. fuel gas systems(MAN Cryo) Axial and radial turbochargers for twostroke and four-stroke engines, injectionsystems, systems electronicsMAN Diesel & TurboGGKCompany Presentation 2017 9

MAN Diesel & TurboSystem Supplier for the Maritime IndustryMAN Diesel & Turbo – Out of one hand:Auxiliary dual fuel GenSetsMAN PrimeServPropulsion systemTurbochargerMAN 2-stroke dual fuel main engineFuel gas supply systemLNG tanksMAN Diesel & TurboEmission after treatmentDr. U. Lauber / R. SchmidtMDT for 2x 7,000 CEU Car Carrier Feb.2017 10

Marine applicationsPowered by two-stroke and four-stroke enginesContainer ShipLNG TankerGeneral CargoCruiseBulkerMAN Diesel & TurboNavyOffshoreFishingTankerGGKCompany Presentation 2017 11

Design and ManufacturingCopenhagen, DenmarkDesign of TwoStroke EnginesProduction ofSpare PartsPrimeServAcademyR&D CenterDiesel HouseMAN Diesel & TurboEmployees (31.12.2016) : 1,250GGKCompany Presentation 2016 12

Most comprehensive engine programmeDiesel engines from 450 kW to 82,440 kWFour-stroke engines450 - 21.600 kWComparison 429Two-stroke engines 3.200 - 82.440 kW195747(number VWGolf TDI)MAN Diesel & TurboGGKCompany Presentation 2017 13

Licensees NetworkMore than 100 years of license businessJapanChina P.R.nnn nnCSIC, Shanghai Qiyao Engine (SQE)nnn198019782007198019892014n2017n nn n nnnnnnn19801978200720162018200820082009CSIC, Shaanxi Diesel Engine Heavy Ind., (SXD)CSIC, Henan Diesel Engine Heavy Industry (HND)CSIC, Dalian Marine Diesel (DMD)CSIC, Yichang Marine Diesel (YMD)CSIC, Qingdao Haixi Marine Diesel (QMD)CSIC, China Shipbuilding Industry CorporationDiesel Engine Co., Ltd.(CSE)CSSC, CSSC Marine Power (CMP)CSSC, Hudong Heavy Machinery (HHM)CSSC – CSSC-MES Diesel (CMD)Yuchai Marine Power Co., Ltd. (YCMP)JingJiang Dingkun Machinery Co., Ltd. (DKM)Weichai Heavy Machinery (WHM)Hefei RongAn Power Machinery (RPM)CNPC Jichai Power Company Limited (CNPC)Kawasaki Heavy Industries (KHI)Mitsui Engineering (MES)Mitsubishi Heavy Industries (MHI)Hitachi Zosen Corp.J.F.E. Engineering (JFE)Diesel United (DU)Niigata Power Systemsn n n n 1911nn 1926n1929n1951n1964n1963n1973KoreaHyundai Heavy Industries (HHI)STX Engine (STX)STX Heavy Industries (STX HI)Doosan Enginen19761977nn 1977n n n1983nPolandH. Cegielski Poznan (HCP)Fabryka Silnikow Agregatowych (FSA)nn19591995n1965n n1995SpainNavantiaCroatian nnBrodosplitUljanikn Low-SpeedMAN Diesel & Turbo19671954n Medium-Speed/MANGGKU.S.A.Fairbanks Morse Engine (FME)n Medium-Speed/Pielstick n TurbochargerCompany Presentation 2017 14

Worldwide locationGlobal network of service hubsMAN Diesel & TurboGGKCompany Presentation 2017 15

Global megatrendsDrivers of our business Worldwide seaborne trade will double until2030 Growing demand of energy efficient shipsand propulsion solutionsIncrease of world trade andinternational passenger trafficTRANSPORTMAN Diesel & TurboGGKCompany Presentation 2017 16

Global megatrendsDrivers of our businessIncrease of world trade andinternational passenger traffic Worldwide seaborne trade will double until2030 Growing demand of energy efficient shipsand propulsion solutionsIncrease of energy demand Global energy demand will almost doubleuntil 2030 Growing importance of decentralized energygenerationTRANSPORTENERGYMAN Diesel & TurboGGKCompany Presentation 2017 17

Global megatrendsDrivers of our businessIncrease of world trade andinternational passenger traffic Worldwide seaborne trade will double until2030 Growing demand of energy efficient shipsand propulsion solutionsIncrease of energy demand Global energy demand will almost doubleuntil 2030 Growing importance of decentralized energygenerationIncreasing demand ofindustrial products Worldwide consumption will nearly doubleuntil 2025 with another 1.8 billion peopleentering the global consuming classTRANSPORTENERGYINDUSTRYMAN Diesel & TurboGGKCompany Presentation 2017 18

Global megatrendsDrivers of our businessIncrease of world trade andinternational passenger traffic Worldwide seaborne trade will double until2030 Growing demand of energy efficient shipsand propulsion solutionsIncrease of energy demand Global energy demand will almost doubleuntil 2030 Growing importance of decentralized energygenerationIncreasing demand ofindustrial products Worldwide consumption will nearly doubleuntil 2025 with another 1.8 billion peopleentering the global consuming classTRANSPORTENERGYINDUSTRY Introduction of emission standardsClimate change Growing significance of gas as fuelCLIMATEMAN Diesel & TurboGGKCompany Presentation 2017 19

Influencing Factors on Fuel GSustainability offuelsFlexibilityBiofuelMethanolDistillatesHeavy fuelULSFOLNGLogistics(dualfuel)EthaneMAN Diesel & TurboDorthe Jacobsen/Ioannis Gekas 19.12.2017 20

Fuel aneBiofuel(2nd 3rdgen.)MAN Diesel & Turbo supports allMAN Diesel & TurboDorthe Jacobsen, Fuel & Lube, Emission Reduction TechnologyDiesel Technology Seminar – Fuels in 2020 – two-stroke11.10.2017 21

ME-GI engineGI componentsMAN Diesel & Turbo 22

Comparing Transport EfficiencyFuel consumption per tonne-kilometersFuel needed per 1km transport of 1 ton of goodsShip1,5 gTrain7gTruck18 gPlane224 g 50% of world trade powered by MAN enginesMAN Diesel & TurboGGKCompany Presentation 2017 23

2018MAN Diesel & TurboMAN Diesel & Turbo„Engineering the Future – since 1758.“Company PresentationGGKCompany Presentation 2017 24

DisclaimerAll data provided in this document is non-binding.This data serves informational purposes only and is especiallynot guaranteed in any way. Depending on the subsequentspecific individual projects, the relevant data may be subjectto changes and will be assessed and determined individuallyfor each project. This will depend on the particularcharacteristics of each individual project, especially specificsite and operational conditions.MAN Diesel & TurboGGKCompany Presentation 2017 25

Hyundai Heavy Industries (HHI) n 1976 STX Engine (STX) n 1977 STX Heavy Industries (STX HI) n 1977 Doosan Engine n 1983 Korea Fairbanks Morse Engine (FME) n 1995 U.S.A. Navantia n 1965 Spain CSIC, Shanghai Qiyao Engine (SQE) n n 1980 CSIC, Shaanxi Diesel Engine Heavy Ind., (SXD) n n 1978 CSIC, Henan D

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