July 2015

Why Isle of Man? Low Cost High Quality Great Service A quality flag which matches client’s expectations A centre of maritime excellence Building lasting relationships Providing the ideal solution Putting the client first

Isle of Man offers support Full Isle of Man Government support for shipping The right to fly the "Red Ensign" and access the support of British consular services world-wide Technical support and information provision for new conventions and regulations e.g. ILO MLC & BWM Convention

Isle of Man offers lower risk The Isle of Man Ship Register is high quality and one of the world’s best: Paris MOU White List and ‘low risk’ status Tokyo MOU White List and ‘low risk’ status USCG Qualship 21 Top of Industry’s Flag State Performance Table Less scrutiny of Isle of Man ships in ports around the world

Isle of Man is business friendly Easy for shipyards – No change to standard specification used e.g. for Panama Pragmatic approach to regulation Strong focus on customer service and relationship building Parallel registration (demise-in or demise-out) available Crew matters - simple & speedy STCW endorsements. In-house technical expertise , advice, and assistance. Registry at out-of-hours times to suit shipyard delivery 24/7 assistance guaranteed

Isle of Man offers value Keeping costs low by charging: no tonnage dues no annual inspection fees no consular fees no casualty investigation fees High quality register with the prestige this brings Discount scheme for multi-ship fleets registered (up to 25%) Non-profit making maritime administration funded by government Annual registry fee £1625 per year (approx. USD $2,500) Block fee scheme available for survey and audit fees ‘Green ship’ incentive - fee reduction for eco-friendly ships

Growth of Register Number of vessels

Tonnage Growth in GRT(m)

Fleet by type (merchant ships)

Registry Statistics as at 30 June 2015 Merchant Ships >500GRT 381 Merchant Ships >500GRT (Demise-in) 39 Commercial Yacht >24m 80 Pleasure Yacht 366 Small Ships (local vessels <24m) 126 Fishing Vessels 70 Total 1062 Total Gross Registered Tonnage 15.7 million Average Age 12.4 years 500

Competition – Top 20 flags by GRT(m) Source: Clarkson Research Services

Cost comparison over 5 years 5 year Registry costs in USD

Denotes - Isle of Man office Clients include:

Class Societies: Pilot Approval Project in process

Ownership Ship Ownership structures are accepted from : EU/EEA countries UK Territories British Commonwealth countries Australia, Bahamas, Canada, China, Hong Kong, India, Japan, Monaco, New Zealand, Pakistan, Russia, Singapore, South Africa, Switzerland, United Arab Emirates, USA Panama, Liberia, Marshall Islands

Crew matters STCW endorsements Manning ILO/ITF Issued from the Isle of Man Extensive list of accepted countries Simple and speedy process 90% issued within 5 working days Manning Flexible manning requirements Safe Manning documents issued ILO/ITF Recognised by Shipping Unions (not FOC) Crew complaints procedure direct to Flag

Survey coverage – Isle of Man surveyors

LRIT - Global Fleet

Developments in Asia Business Development Manager (Asia) Capt Raja Ray Director Ray Marine Services captraja@gmail.com +65 9822 4550 Over 40% tonnage from Asia Agents in Tokyo - Mitsui-Soko daisuke_yamamoto@mitsui-soko.co.jp Growing presence for surveys: Singapore; Manila; Hong Kong; Shanghai KR Class – pilot project for Approval Tax agreements - Singapore; Japan; China and India

The Isle of Man Secure and stable Government Financially secure Preferred flag by banks and insurers Located in Europe but not EU member state Tax friendly – OECD white listed 0% corporate tax British Isles but NOT part of UK Independent of UK for Tax matters VAT linked with UK Shipping centre with maritime tradition

Economic Benefit Centre of excellence providing: Ship Management Crew Management Yacht Management Commercial management Private Client Services Insurance Fiduciary & Corporate Services Ship Finance Legal Services Chartering and commercial operations Representative Services for Manx registered ships Local maritime sector: 580 Employees Average Salary > £45K Local spend (excl. Salaries) > £70m

C.Eng; F.I.MarEST; M.I.Mech.E; MIoD Dick Welsh C.Eng; F.I.MarEST; M.I.Mech.E; MIoD Director St. George’s Court Upper Church Street Douglas Isle of Man IM1 1EX BRITISH ISLES Tel: +44 (0)1624 688500 Mob: +44 (0)7624 451242 dick.welsh@gov.im www.iomshipregistry.com