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TOTAL COST OF OWNERSHIP OF MARINE PROPULSION ENGINES

CIMAC CIRCLE AT SMM/HAMBURGSEPTEMBER 9, 2010

ROLF VESTERGRENVP ADVISORY SERVICES

WÄRTSILÄ

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Customer drivers

Shipowner/Operator“uninterrupted operations

with lowest possibleoperating costs”

Shipbuilder“build vessels which

meet the requirementswith lowest possible cost”

Wärtsilä“Design, build and support innovative

high quality lifecycle solutions”

• Price• Quality

• Availability• Design

• Innovativeness (energy,efficiency, economy)

• Lifecycle support 24/7• Design support• Asset optimisation

• Price• Quality• Availability• Design

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Example of Total Cost of Ownership for Main Engines

Installed power 12600 kWAverage load 85 %Fuel price 335 €/tonFuel consumption 183 g/kWhLube oil consumption 0.6 g/kWhCapex 4.5 M€Man power 63 k€/monthInsurance 1 %/yearInterest rate 7 %Maintenance cost based on manual + experience

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Example of 25 years ownership

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Total Cost of Ownership

How can we as an engine builder help optimising the Total Cost of Ownership for our customers assets?

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Wärtsilä Optimisers

The VisionAn major part of the interactions and businesses will rely on modern communication and information technology. How can we efficiently use

the technical possibilities to reduce risks and improve the OPEX

Wärtsilä OptimisersWärtsilä Optimisers is a new information based service model in the

industry that supports co-creation and an optimization of asset performance through a collaboration between customers, OEM expertise

and other stakeholders.

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To any application

The technical solution

Connect any type of

equipment

Through any type of

communication

Anywhere

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Collaboration

• Back-office experts• 24/7 response• Global support

OEMexpertise

• Safety manning level onboard • Assistance from onshore

Onboard personnel

•Optimisation•Support

Online services

• Operational planning• Monitoring• Reporting

On-shore management

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Legislation changes

2006 2008 2010 2012 2014 2016 2018 2020

Marine CO2 cap / IMO Energy Efficiency Operational Index

US-EPA Tier III & IV / NOX, PM, THC/ US flagged,eng<30 l/cyl

EU SOX regulation/ 0.1 % sulphur in fuel/ EU ports + all inland waterways

EU SOX regulation / 1.5 % sulphur in fuel/ passenger ships in EU + all ships in SECA

IMO SOX regulation / Sulphur in fuel/ SECA 2010 & 2015, globally 2020

IMO Tier III on NOX / new shipsin NECA

Differentiated tonnage tax / NOX/ Norway

Differentiated fairway & harbour fee / NOX, SOX/ Sweden / Finland

Foreseen, not yet in place

Air emission legislation/regulation developments

IMO emission regulation/ Expansion of the ECA to USA and Canada

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Wärtsilä dual-fuel (DF) engine portfolio

0 5 10 15

34DF

20V34DF 9.0 MW

12V34DF 5.4 MW

9L34DF 4.0 MW

6L34DF 2.7 MW

16V34DF 7.2 MW

18V50DF 17.55 MW

16V50DF 15.6 MW

12V50DF 11.7 MW

9L50DF 8.8 MW

8L50DF 7.8 MW

6L50DF 5.85 MW50DF Higher output for 60Hz / Main engines

20DF

9L20DF 1.6 MW

8L20DF 1.4 MW

6L20DF 1.0 MW

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Lightweight engine, designed for reliability and lowest possibleTotal Cost of OwnershipFirst delivery in August 2011

Extension of Wärtsilä‘s low-speed engine portfolioNew RT-flex 35 and 40 bore engines

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Tier II tuning variants illustration (RT-flex68-D)

162

164

166

168

170

172

174

176

178

40% 50% 60% 70% 80% 90% 100% 110% 120%

bsfc

, g/k

Wh

load

RTA RT-flex cost-opt. RT-flex StandardRT-flex Delta RT-flex Low-load

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Wärtsilä’s Global Service Network and Trading Routes

11 000 professionals160 service stations70 countries

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14 © Wärtsilä 22 September 2010 Presentation name / Author, DocumentID:

Thank You!