Page 1 REWARDING SUSTAINABILITY Anuj Chopra 23 October 2014

Page 2 RightShip Finding a green ship in a blue ocean EVDI - Environmental ratings Port Incentive Program Conclusion RightShip – Rewarding Sustainability TODAY’S DISCUSSION

Page 3 ABOUT RIGHTSHIP Independent company formed in Oct 2001 Houston, Melbourne & London 240+ customers globally Ship Vetting & Risk Management Petroleum & dry cargo vetting service Environmental rating & CO 2 benchmarking Largest provider of third party vetting services Removed over 950 Ships from customer supply chains in 2013 Award winning Proven System ISO9001 & ISO27001 certified Australian Prime Minister’s 2013 Exporter of the Year RightShip – Rewarding Sustainability

Page 4 RightShip – Rewarding Sustainability FINDING A GREEN SHIP IN A BLUE OCEAN

Page 5 WHO ARE OUR STAKEHOLDERS? RightShip – Rewarding Sustainability

Page 6 COMBAT INFORMATION ASYMMETRY RightShip – Rewarding Sustainability

Page 7 RightShip - Rewarding Sustainability RIGHTSHIP’S ENVIRONMENTAL RATINGS

Page 8 DEFINING EFFICIENCY RightShip - Rewarding Sustainability Energy Efficiency Design Index (EEDI) / Existing Vessel Design Index (EVDI) A formula to calculate the amount of CO 2 emitted (in grams) by a vessel for every tonne of cargo carried per nautical mile based on Total engine power Fuel type & specific fuel consumption Cargo carrying capacity Speed EVDI – vessels built prior to 01 Jan 2013 / EEDI – vessels built post 01 Jan 2013

Page 9 EVDI – Basis for Comparison Data sources e.g. IHS Fairplay, SVIS, Owners, etc. Ship types – 75,000+ vessels Data verification during vetting process Approximately 7,000 ships in RightShip database verified A-G GHG Emissions Rating Relative comparison of peer group Provides industry framework for comparison Identify most efficient vessel Fact: ~15% of world fleet will have EEDI by RightShip - Rewarding Sustainability RIGHTSHIP’S A-G GHG EMISSIONS RATING EVDI = CO 2 emission transport work

Page 10 RightShip - Rewarding Sustainability CALCULATING THE A-G GHG EMISSIONS RATING 100,000 DWT Bulker 90,000 DWT Bulker 10% smaller in DWT 10% larger in DWT EVDI / EEDI Calculate EVDI Log Value Apply Weights to Log Values Calculate Z-Score GHG Emissions Rating 110,000 DWT Bulker

Page 11 LET’S COMPARE RightShip - Rewarding Sustainability

Page 12 Holistic Rating Recognises performance and behaviours above compliance. Calculated environmental risk parameters Vessel performance Third party environmental factors RightShip - Rewarding Sustainability ENVIRONMENTAL STAR RATING

Page 13 PORT INCENTIVE PROGRAM

Page 14 PORT METRO VANCOUVER ECO ACTION PROGRAM RightShip - Rewarding Sustainability

Page 15 GHG Emissions Rating – Environmental Star Rating Over $72,000 in discounts in first six months alone Access to rating provided free to ports RightShip - Rewarding Sustainability PRINCE RUPERT ENVIRONMENTAL INCENTIVE PROGRAM First Six Months Discounts to 83 vessels (127 total calls) 91 of these calls qualified through RightShip’s A to G

Page 16 Efficient ships Act Local, Think Global Reduce overall emissions in the port area Ultimately reduce emissions for entire voyage Links between green ships and safer ships Recognition of sustainability efforts Prince Rupert / Port Metro media campaign – 6.7 million opportunities to view Increasing focus on emission reduction RightShip - Rewarding Sustainability PORT INCENTIVE PROGRAM – KEY BENEFITS

Page 17 RightShip - Rewarding Sustainability COMMERCIAL BENEFITS

Page 18 RightShip - Rewarding Sustainability A VOYAGE...

Page 19 RightShip - Rewarding Sustainability A VOYAGE...

Page 20 RightShip - Rewarding Sustainability A VOYAGE...

Page 21 MARKET MOVES FASTER THAN REGULATION Twenty three charterers factor energy efficiency into the Charter selection process —1.8 billion tons of cargo —23% of global non-containerized shipments —21,500 vessel movements annually —Research data —22,000t CO 2 saving in 12 months —approx. $4.5M bunker saving Three ship-owners publicly endorse energy efficiency Three ports factor energy efficiency into the vetting acceptance process ABN Amro —Complimentary to internal risk management procedures —Factor vessels’ energy efficiency into underwriting process RightShip - Rewarding Sustainability

Page 22 THE CHARTERERS RightShip - Rewarding Sustainability

Page 23 THE CHARTERERS RightShip - Rewarding Sustainability

Page 24 SURVIVAL OF GREENEST RightShip - Rewarding Sustainability

Page 25 Sustainability is now a Standard Consideration in Shipping A-G GHG Emission’s Rating —Compares 75,000+ vessels —Common platform for comparison —relative and absolute efficiency Environmental Star Rating —Performance / behaviors above compliance Industry Acceptance —Charterers —Banks —Ship-owners —Port Incentive Program WORKING TOWARDS A CLEANER ENVIRONMENT RightShip - Rewarding Sustainability

Page 26 PORTS USING THE “A” TO “G” - 6-STEP ROADMAP RightShip - Rewarding Sustainability

Page 27 STAKEHOLDERS OUR STAKEHOLDERS RightShip - Rewarding Sustainability

Page 28 STAKEHOLDERS OUR STAKEHOLDERS Way Forward... Way Forward... RightShip - Rewarding Sustainability

Page 29 ¡Muchas Gracias!