1. Michele FRANCIONI CEO RINA SERVICES S.p.A. Shipping and the Law - October 2014 Why invest in Eco ships?

2. IS THIS THE RIGHT TIME FOR INVESTING? INVESTING…

3. (1) Sources: Banchero Costa research “Dry Bulk Market Update” SHIP SUPPLY - BULK CARRIER

4. Newbuilding prices (mill USD) Sources: Clarkson “World Shipyard Monitor” SHIP SUPPLY - BULK CARRIER

5. Sources: Banchero Costa research “The Product Tanker Market” SHIP SUPPLY - PRODUCT TANKER

6. Newbuilding prices (mill USD) Sources: Clarkson “World Shipyard Monitor”

7. World fleet (mill. dwt) CAGR ’12-’14: + 3.7% WORLD SHIP SUPPLY Sources: Clarkson “World Fleet Monitor” CAGR BULK ’12-’14: + 5% CAGR TANKER ’12-’14: + 1.8%

8. WORLD SHIP DEMAND Sources: Clarkson “Oil and Tanker Trade outlook”, “Dry Bulk Trade outlook”, “Shipping Intelligence Network” Seaborne trade (mill. tons) CAGR ’12-’14: + 3.4% CAGR BULK ’12-’14: + 4.9% CAGR TANKER ’12-’14: + 1.1%

9. CHARTER RATES 1 year time charter tanker (USD) 1 year time charter bulker (USD) Sources: Clarkson “Oil and Tanker Trade outlook”, “Dry Bulk Trade outlook”, “Shipping Intelligence Network”

10. IS THE GAP SUPPLY/DEMAND GOING TO BE RECOVERED SOON?

11. IS DEMOLITION ACTUALLY HELPING TO REDUCE THE GAP? Sources: Banchero Costa research “Dry Bulk Market Update”

12. New orders growth: 55m dwt in 2012  179m dwt in 2013  66m dwt in 2014 First Quarter BANKS PRIVATE EQUITY FUND Sources: Clarkson “Shipping Review and Outlook”; Lloyd’s List on-line DO ECO SHIPS OFFER SIGNIFICANT RETURN ON INVESTED CAPITAL? VS

13. (1) PRO ECO SHIP OWNERS

14. (1) PRO SECOND-HAND SHIP OWNERS

15. KEY FACTORS FOR CHOICE  New building prices  Second-hand prices  Actual fuel saving  Availability of good second-hand/resales  Operational speed required by the market

16. ECO SHIP FUEL SAVING, HOW MUCH? TypeSizeDWT Convent. Ship - Average daily fuel oil consumption (Tons) 2006-2010 Eco Ship - Average daily fuel oil consumption (Tons) 2012-2013 Daily Save per ship (Tons) % Daily Save Speed (kn) Oil Tanker Handysize4000029.722.37.425% 14.4 RINA Analysis

17.  IMO – Air emission: 0.1% SO x in ECA 01.01.2015 New and existing ships  IMO – Air emission: -10% CO 2 EEDI 01.01.2015 (2020 & 2025) New ships  IMO – Air emission – NO x in ECA 01.01.2016 New ships  IMO – GBS 01.07.2016 New ships  IMO – Ballast Water Treatment not yet into force New and existing ships REGULATORY FACTORS

18. SULPHUR OXIDES (SO X ) Exhaust gas cleaning systems (scrubbers) Nitrous Oxides (NO X ) SCR - Selective Catalytic Reduction Ballast Water Convention BWTS NEW ECO FEATURES : Is it worth investing?

19. An holistic approach is needed Regulation Financial Issues Technical Solutions Laws & Authorizations Logistic Scenario Social Perception IS LNG A SOLUTION?

20. The key to success in the risk/return game is not to minimize or maximize risk but to manage risk Mark A. Johnson

21. Thank you for your attention! RINA SERVICES S.p.A. Via Corsica, 12 16128 Genoa - Italy Ph. +39 010 53851 Fax +39 010 5351000 info@rina.org www.rina.org