1. Trusted to deliver excellence © 2015 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. A VISION OF THE INTELLIGENT SHIP The Digital Ship Hamburg, 18.3.2015 Justin Norman, Strategic Research Centre - Land & Sea Team

2. © 2015 Rolls-Royce plc Justin Norman Fundamental Changes in Shipping Historic changes: –From sail to steam –Coal to diesel –Introduction of the container ship –Cross Atlantic airflights (end of the ocean liners) –etc. What will be the most fundamental changes in shipping during your career?

3. © 2015 Rolls-Royce plc Justin Norman Trends

4. © 2015 Rolls-Royce plc Justin Norman Ship Intelligence

5. © 2015 Rolls-Royce plc Justin Norman Ship Intelligence - Customer value Energy saving Maintenance cost Availability Revenue optimization Safety Usability

6. © 2015 Rolls-Royce plc Justin Norman Data we are logging Vessel Operational Performance Data Product condition specific data (temp, pressures, etc.) Product usage specific data Vessel Position Data Environmental data Fuel and efficiency specific data Selection of Control Systems data Vibration, Oil monitoring (particles, moisture), speed, load, steering angle Other available data: RCI data, safety records, Doc Library, maintenance data, ERP/Baan/SAP data, Design data from PLM, test records, service reports

7. © 2015 Rolls-Royce plc Justin Norman Data usage today Offerings to customers: Equipment health monitoring services Energy management services Marine Care offerings (predictive maintenance) Operational performance reporting at customer request. Input to Onboard Vessel Optimization functionalities. Data analytics to build vessel and fleet performance optimization consultancy business

8. © 2015 Rolls-Royce plc Justin Norman Unified Bridge 8

9. © 2015 Rolls-Royce plc Justin Norman oX – Personal Preferences 9 1.Adjusting workstations 2.Adjusting HUD graphics

10. © 2015 Rolls-Royce plc Justin Norman oX – Augmented Reality 10 1.Augmented Navigation 2.Adjusting HUD graphics

11. © 2015 Rolls-Royce plc Justin Norman oX – Situation Awareness 11 1.Augmented Assistance 2.Remote Operated Sub-Systems

12. © 2015 Rolls-Royce plc Justin Norman A Vision of the Intelligent Ship Unmanned Remote Controlled Ships Making ship transport more efficient and safe!

13. The Market Pull 13 Safer seafaring Emissions reduction Recruitment and retention Reduction in manning costs No deckhouse => reduced weight, drag & hotel load => fuel savings More cargo, potential for slow steaming © 2015 Rolls-Royce plc Justin Norman

14. The Market Push Other unmanned vehicles: - Airplanes Helicopters Cars Trains and subways Submarines ROV:s Offshore installations... It is not if, but when... Marine is only following todays trend!

15. © 2015 Rolls-Royce plc Justin Norman Crew Trends Crew size for ocean going ships ?

16. © 2015 Rolls-Royce plc Justin Norman Interpreting Autonomy 16 Sheridan's Levels of Autonomous Decision-Making Candidate vessel navigation functions

17. © 2015 Rolls-Royce plc Justin Norman Remote Controlled Ships - Features Lower LWT New possibilities New machinery locations Novel machinery types Better cargo handling Etc… New possibilities New machinery locations Novel machinery types Better cargo handling Etc… Communications Ship-to-shore Ship-to-ship IT security Etc… Communications Ship-to-shore Ship-to-ship IT security Etc… No hotel systems Water production Water heating AC Sewage treatment Etc… No hotel systems Water production Water heating AC Sewage treatment Etc… Lower power demand Lower resistance from reduced LWT Lower hotel load Etc… Lower power demand Lower resistance from reduced LWT Lower hotel load Etc… Redundant machinery Lower costs Better weight distribution More cargo No deck house

18. © 2015 Rolls-Royce plc Justin Norman ROADMAP for Unmanned Ships

19. © 2015 Rolls-Royce plc Justin Norman Operation optimization Fleet optimization e-Navigation and route optimization Performance management Decision support systems Operation optimization Fleet optimization e-Navigation and route optimization Performance management Decision support systems Health & safety management Remote diagnostics and predictive maintenance Reliability and redundancy Safety and security systems Health & safety management Remote diagnostics and predictive maintenance Reliability and redundancy Safety and security systems Communications Ship-to-shore and ship-to-ship Communication infrastructure Data filtering and processing Communications Ship-to-shore and ship-to-ship Communication infrastructure Data filtering and processing Remote controlled systems Machinery, propulsion and auxiliary systems Cargo handling and payload systems Mooring Ship level integration of functions Remote controlled systems Machinery, propulsion and auxiliary systems Cargo handling and payload systems Mooring Ship level integration of functions Remote control centre Operations management Situational awareness interface Human interaction interface Remote control centre Operations management Situational awareness interface Human interaction interface Situational awareness systems Obstacle detection, classing and tracking Near field path planning and execution Environmental condition monitoring Situational awareness interfacing with remote control center Situational awareness systems Obstacle detection, classing and tracking Near field path planning and execution Environmental condition monitoring Situational awareness interfacing with remote control center Key Development Areas

20. © 2015 Rolls-Royce plc Justin Norman 20152020202520302035 o Remote machinery diagnostics o Remote machinery monitoring o Remote machinery control o Remote watch-keeping o Remote deep sea navigation o Autonomous deep sea navigation o Shore-side Bridge Proxy o Fleet monitoring & control o Machine collision avoidance o Automated ship-shore administration SOLAS Ch. IV 12 COLREG Pt. A-B SUA Art.3-8 Load lines Ax. 1 SOLAS Ch.V Reg 11, 14, 22, 33, 44, … GMDDS, Ship Registration Convention STCW Ch.III ILO C179- 180 UNCLOS Art. 94, ISM Code, SALVAGE Ch.2 ISPS code SOME EXAMPLES OF CONFLICTS WITH PRESENT INTERNATIONAL RULES AND REGULATIONS REISSUE 2024? International Regulatory Obstacles

21. © 2015 Rolls-Royce plc Justin Norman 20152020202520302035 o Remote machinery diagnostics o Remote machinery monitoring o Remote machinery control o Remote watch-keeping o Remote deep sea navigation o Autonomous deep sea navigation o Shore-side Bridge Proxy o Fleet monitoring & control o Machine collision avoidance o Automated ship-shore administration CABLE FERRY COASTAL CARGO SHIP SEMI-AUTONOMOUS OCEAN GOING CARGO SHIP AUTONOMOUS OCEAN GOING CARGO SHIP Potential Timeline For Ship Concepts Adoption of the technologies and functionalities towards autonomy is likely to start from locally operating vessels

22. © 2015 Rolls-Royce plc Justin Norman The most fundamental change in shipping: Ship Intelligence is the main technology trend! Unmanned ships