HIGHLY CONFIDENTIAL

Supply Chain

THiiiNK Flettner Rotor

Folding Flettner Rotor Wing §  The Flettner Rotor is a large upright cylinder that rotates creating a magnus effect

when wind passes around it, creating thrust

§  THiiiNK has developed a Rotor with a special sail design flap (THiiiNKSail©) that increases efficiency of a standard Flettner Rotor by over 50%

§  THiiiNK also has developed and patented technologies that allow the rotor to be hydraulically folded down onto the ship allowing passage under bridges, access to ports and ease of loading and unloading

§  THiiiNK patents protect the IP for the THiiiNKSail© and the folding mechanism

Production

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§  The production of THiiiNK’s rotor is undertaken by a committed group of world class industrial suppliers

§  Key strong relationships with main subcontractors have been developed and maintained by THiiiNK’s management for 3 years

§  Based on THiiiNK’s proven technology, individual parts comprising a rotor installation have been designed for THiiiNK by these subcontractors

§  All parties have been involved in the R&D and testing processes from an early stage involving significant supplier investments

§  Cost commitments have been verified and pre-production agreements are in place

§  Folding process uses 2 hydraulic cylinders

§  Operates similar to any normal crane – standard parts from sub contractor catalogue

§  Cylinders are powered by the same hydraulic PowerPack used to drive the rotor motors if hydraulic

Folding/lifting mechanism

Aspects of a THiiiNKsail© rotor

Motor & PowerPack §  The Hydraulic PowerPack is situated on the vessel’s deck and is responsible

for driving the the complete rotor system, (motor)*, flap positioning including folding mechanism * Not if electric

§  PowerPack utilises power from a ship’s generator to pressurise hydraulic fluid that drives the rotor system, the system can also be all electric driven

Main rotor & flap §  The main rotor is continually spun via the electric or hydraulic motor. The

Magnus effect is created when the wind hits the rotor creating thrust driving the vessel forward

§  The THiiiNK designed flap (THiiiNKsail©) increases the efficiency of this effect, by dramatically increasing lift and up wind performance

Folding mechanism §  A THiiiNK customised folding mechanism is used to allow the rotors to be lowered

onto the vessel’s deck in order to pass through bridges and access all ports

Deck reinforcement structure §  The ship’s deck requires reinforcements to install the rotors and to cope with

the additional stress when they are driving the vessel or being lowered via the folding mechanism

THiiiNKsail©

Flettner Rotors

PowerPack

Foldable

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Retrofit strengthening

Hydraulic hinge

Rotor system overview

Deck fitting

Rotor fold actuator

THiiiNKSAIL©

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Folding THiiiNKsail©

Folding/lifting mechanism

Foldable End cap

Mast

Rotor

Huisman or BLADT are responsible for manufacturing the rotor mast and the FLAP hinge and will also perform the final assembly…

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Key subcontractor parts

Example complex drilling vessel that Huisman & BLADT would typically manufacture all parts for in house

(except for hull and engine) and then assemble

Final assembly Rotor mast

FLAP hinge fabrication

Subcontractor

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2

3

4

5

6

Parts supplied % of value1

6 Note: 1 – Estimated contracted value of parts supplied, prices subject to vary with each contract; 2 – Each contractor is fully liable for their parts and any damaged caused as a result of failure or engineering faults. Similar to any structure (e.g. crane on ship), any incident would be covered by insurers and then subject to full investigation to determine cause and any liable parties

Assumption of product Liability2

Rotor End cap

FLAP 14% ü

Rotor bearings 10% ü

Hydraulic Cylinders

Motor Power-pack

30% ü

Lifting hinge 18% ü

Rotor mast FLAP hinge

Rotor system final assembly

20% ü

FLAP bearings FLAP drive motor 8% ü

Contractor commitments

Sub-contractor volumes have been under pressure recently and they are therefore highly motivated to explore / develop to new growth business areas

Suppliers have provided significant R&D support and on going commitments to THiiiNK – estimated to have invested €4.5m between them

The complete rotor system has a very low parts count of only 36 parts mainly sourced from just 5 companies in Europe, making production supply chain simple and straightforward

SC

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§  All subcontracts will deliver their individual components for final assembly by Huisman in the Netherlands or BLADT in Denmark

§  The vessel will simultaneously be prepared with deck strengthening and deployment of the rotor control systems

Process

FINAL ASSEMBLY GER

SWI SWI

GER

GER GER

Swiss-German-Danish Supply chain overview

NED

FINAL ASSEMBLY DK

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Approvals and safety

1 Class Approval §  The objective of ship classification is to verify the structural strength, reliability, and integrity of essential

parts of the vessel, such as the ship’s “propulsion system” in THiiiNK’s rotor case ‒  THiiiNK has a safety factor of 2.0 vs the 1.4 required by the Lloyd’s Code for Lifting Appliances

(COLA)

§  International Class approval can be provided by 13 societies that meet the full definition of a “Classification Society” and these form the International Association of Classification Societies (IACS)

1.  A technical review by a Classification Society of THiiiNK’s design plans and related documents for the new vessel equipment, including checks that individual parts comply with their Rules has been completed and approved by Lloyd’s

2.  A Classification Society surveyor will visit relevant production facilities providing key components (including those of THiiiNK’s) to verify that they conform to the applicable Rule requirements

3.  A Classification Society surveyor attends sea trials (2-3 days) / other related trials prior to delivery in order to verify conformance with the applicable Rule requirements

4.  In service vessel must be subject to periodical class surveys, carried out on-board to verify that the ship continues to meet the relevant Rule requirements

Stages of Class Approval for THiiiNK:

THiiiNK have been working closely with Lloyd’s Register (the oldest of all the 13 IACS societies)

There will be no issues getting Classification approval from Lloyd’s on the THiiiNK rotor design to be used on vessels

A surveyor will still be required to verify that the installation process is undertaken according to the Class rules

The particular installation method and design of the deck strengthening is decided upon by the ship owners each time

§  Babcock, appointed by the Oil Major, has conducted an independent engineering report verifying that THiiiNK rotors could be installed and operated safely on vessels using the proposed hull strengthening support

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Insurance company approval §  Leading shipping insurance specialist Lockton were consulted at the start of the development of THiiiNK’s

rotor and confirmed that the rotor would fall under their normal overall hull insurance that also covers almost all other typical structures on the deck (such as a ship’s crane) – no additional premium would therefore be incurred

Oil Major

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Customer rotor ordering process

1 Order administration

•  Rotor purchase agreement signed with THiiiNK •  Vessel deck specifications reviewed and deck reinforcement

designs drawn up by THiiiNK in consultation with ship owner’s engineers

•  THiiiNK places parts orders with subcontractors and notifies Huisman or BLADT on final assembly

•  Installation scheduled to tie in with vessel dry docking cycle (mandatory requirement every 2-5 years)

2 Rotor assembly

•  Sub-contractors manufacturer individual parts •  THiiiNK conducts transfer checks on all shipments from the

parts manufacturers to Huisman or BLADT for final assembly •  THiiiNK inspects assembled rotors •  Rotors are shipped to location for installation (if not installed by

Huisman or BLADT)

3 Installation

•  Docking cycles normally allow 14 days for complete overhaul and class inspections – optimum time to install rotors

•  THiiiNK engineers oversee the deck reinforcement organised by the ship owner pre rotor installation – typically this would be completed by the shipyard or by Huisman or BLADT

•  THiiiNK engineers oversee rotor installation •  Rotor installation completed in a maximum of 7 days •  Installed rotors are surveyed for Class approval by on site

surveyors

4 After sales service

•  THiiiNK rotorman on board all ships with installed rotors for minimum of 3 months to:

•  provide immediate assistance •  on site crew training •  ensure the ship owner gets the maximum benefit from the

rotors •  confirm rotors are not misused

•  Technical data monitored by THiiiNK specialists

6-9 months1

7 days

Notes: 1 – 9 month maximum assumes 4 months as the longest lead time rotor part given no pre-warning to the subcontractor. This time can be reduced when there is greater capacity and also will be pre-ordered to align with the docking cycle of the ship

How it works

§  The Magnus effect is something that has been observed in many different applications around the world

§  It is created by a spinning object accelerating the air passing over one side of it whilst decelerating the air on the other side

§  Due to pressure difference this creates a thrust or push from the slow to fast side, similar to an airplane wing

Tennis §  In tennis the Magnus effect is the reason behind the dip in the

ball's trajectory after being hit with “topspin”

Football §  When a football player curves the football by applying spin, this is

the Magnus effect working

§  The force is proportional to ball area, hence why it moves much more than a tennis ball

Rotor ship §  A ship that uses rotorssails which are powered by an engine, first

built by German engineer Anton Flettner in early 1900s

§  Vertical cylinders using the Magnus effect create propulsion to drive the ship

§  Back then the propulsion force generated was less than if the motor had been connected to a regular propeller

§  See history and validation pack for further details

Flettner airplane §  A flettner airplane or rotor airplane is an airplane that has no

wings but instead uses the Magnus effect to create lift.

§  Such airplanes were first built by Anton Flettner. Flettner airplane should not be confused with the cyclogyro, which uses a different aerodynamic effect, but has a similar configuration of rotors.

THiiiNK flap technology

With THiiiNK flap Without flap

Wind Wind

Low pressure

High pressure

Increased force

Appendix – Magnus effect

www.thiiink.com

DISCLAIMER The technical data contained herein is by way of example and should not be relied on for any specific application. THiiiNK Holding Switzerland AG will be pleased to provide specific technical data or specifications with respect to any customer's particular applications. Use of the technical data or specifications contained herein without the express written approval of THiiiNK Holding Switzerland AG is at user's risk and THiiiNK Holding Switzerland AG expressly disclaims responsibility for such use and the situations that may result therefrom. THiiiNK Holding Switzerland AG makes no warranty, express or implied, that utilization of the technology or products disclosed herein will not infringe any industrial or intellectual property rights of third parties. THiiiNK Holding Switzerland AG is constantly involved in engineering and development. Accordingly, THiiiNK Holding Switzerland AG reserves the right to modify, at any time, the technology and product specifications contained herein. All technical data, specifications and other information contained herein is deemed to be the proprietary intellectual property of THiiiNK Holding Switzerland AG. No reproduction, copy or use thereof may be made without the express written consent of THiiiNK Holding Switzerland AG.