Philly Shipyard — Investor Presentation 2014

Jan 17, 2014

Aker Philadelphia Shipyard

Building the Future

Company Presentation 16 January 2014

No shares or other securities are being offered pursuant to this document

Important information

• This presentation (the "Company Presentation") has been prepared solely for information purposes. In this Company Presentation, references to "Aker Philadelphia", "AKPS", the "Company", the "Issuer", "we", "our", "us", or similar terms refer to Aker Philadelphia Shipyard ASA, except where context otherwise requires.
• This Company Presentation is furnished by the Company, and it is expressly noted that no representation or warranty, express or implied, as to the accuracy or completeness of any information included herein is given by the Company and its financial advisors
• The Manager and/or its respective employees may hold shares, options or other securities of the Company and may, as principal or agent, buy or sell such securities. The Manager may have other financial interests in transactions involving these securities.
• An investment in the Company should be considered as a high-risk investment. Certain risk factors relating to the Company which the Company deems most significant as at the date of this Company Presentation, is included under the caption "Risk Factors" in this Company Presentation.
• This Company Presentation is current as of 16 January 2014. Neither the delivery of this Company Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This Company Presentation contains several forward-looking statements relating to the business, future financial performance and results of the Company and/or the industry in which it operates. In particular, this Company Presentation contains forward-looking statements such as with respect to the Company's potential future revenues and cash flows, the potential future demand and market for the Company's services, the Company's equity and debt financing requirements and its ability to obtain financing in a timely manner and at favorable terms. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development.

Summary of risk factors

Business and Industry Risks

• The Company is exposed to changes in the demand and prices for shipping vessels in the U.S. Jones Act trades.
• The Company's business would be adversely affected if provisions under the U.S. Jones Act were waived, modified or repealed.
• The Company's projects are associated with risk of cost overruns on fixed price contracts.
• The Company is subject to uncertainty of future contract awards and increased competition in shipbuilding in the U.S. Jones Act market.
• The contracts in the Company's order backlog may be adjusted or cancelled, and the order reserve is accordingly not necessarily indicative of future earnings of the Company.
• Reductions in activity may be difficult and costly, especially with regard to reductions of workforce.
• The Company may be subject to liability under environmental laws and regulations.
• There are uncertainties related to the Company's intellectual proprietary rights.
• The Company is subject to risk of the outcome of pending and future claims under legal proceedings and contractual disputes.
• The Company is dependent upon its ability to hire, retain, and utilize qualified personnel.
• The Company's insurance coverage may not provide sufficient funds to protect the Company from liabilities that could result from its operations.
• Construction and maintenance sites are inherently dangerous workplaces, and the Company is subject to risk of harm to persons and property in its course of business.
• The Company is exposed to risks relating to unionized labor and general labor interruptions.
• The Company depends on a limited number of customers and are dependent on the successful execution of significant projects it is engaged in from time to time.
• There is no assurance that the Company will receive any profit share under its profit sharing agreement with Crowley relating to the Pennsylvania and the Florida.
• The Company has ownership interests in companies that will own, charter and operate vessels, which expose the Company to additional risks relating to operation of vessels.

Financial Risks

• The Company may not be able to satisfy liquidity requirements and to finance future operations.
• APSI, which constitutes the Company's principal asset, may not be able to transfer available cash resources to the Company.
• The Company may not be able to generate sufficient cash to service all of its indebtedness and to pay dividend distributions on it Shares.
• The Company is exposed to changes in steel prices.
• The Company is subject to exchange rate risk.
• The global economy affects the Company's funding and investments.
• Financing agreements containing operating and financial restrictions may restrict the Company's business and financing activities.
• The Company's future financing arrangements may have floating interest rates, and as a result interest rate fluctuations could negatively affect the financial performance of the Company.

Risks Relating to the Shares

• The price of the Shares of the Company has fluctuated significantly in the past, and may continue to do so in the future.
• Investors may not be able to exercise their voting rights for Shares registered in a nominee account.
• Future issuance of Shares or other securities may dilute the holdings of shareholders and could materially affect the price of the Shares.
• The transfer of Shares is subject to restrictions under the securities laws of the United States and other jurisdictions.
• Shareholders outside Norway are subject to exchange rate risk.
• The Company has a major shareholder with significant voting power and the ability to influence matters requiring shareholder approval.

Investment Highlights

1

4

1. Leading Jones Act shipyard with strong earnings potential

• State-of-the-art facility with more than USD 650m invested since 1997
• Built >50% of all large ocean going Jones Act commercial ships since 2000
• High barriers to entry; no idle facilities or shipbuilding labor significant investments required

2. High visibility out 2018 2

• Over \$1 billion in backlog with last delivery in 2018
• Expect operations at full capacity of ~3.0 product tanker equivalents a year
• Strong need to replace aging Jones Act fleet

3. Direct exposure to tight oil revolution; Six Jones Act PTs with profit sharing 3

• Strong market fundamentals with increasing T/C rates
• Partnership with first-class tanker operator Crowley
• Option for 4 additional PTs in JV

4. Paying dividends starting in Q2 2014

• Record strong financial position
• High confidence in expected profit sharing cash flows out 2020
• Experienced management focused on investor-friendly capital allocation

Aker Philadelphia Shipyard ASA

Purpose of the Equity Raise

Enhance AKPS's ability to capitalize on attractive investment opportunities in market with strong fundamentals

• Near-term funding of construction for Crowley JV (21-24)
• Fund portion of equity investments in Crowley JV (21-24)
• Fund potential equity investments in future vessels
• General corporate purposes

Agenda

Company

Market

Financials

Supporting material

World-class shipyard facilities

Most modern full-scale shipyard in the Jones Act

• Over \$650 million invested in facility, equipment and workforce training since 1997
• Kvaerner applied generations of shipbuilding experience in design of APSI's facilities
• Average age of major equipment is ~12 years with average lifespan of ~25 years
• Minimal near and medium-term capex requirements

Redesigned and transformed from ground up to be a worldclass, highly efficient shipyard

• Unique facility layout and design leverages best-in-class techniques from shipbuilders in Europe and Asia
• Unique production flow with ~ 80% of production occurring indoors
• Largest gantry crane in commercial Jones Act shipbuilding enabling significant pre-dock outfitting

High barriers to entry in Jones Act shipbuilding

• No idle facilities with cost effective equipment and layout. Significant investment in automated facilities is required.
• Excess shipbuilding labor non-existent.. In house training programs, sophisticated processes, and experienced management are required.
• International partnerships are required for competitive design and procurement of modern vessels
• Strong network of local supplies required to support daily operations
• Significant political support required

To day

Highly competent and motivated local workforce

Key comments

• ~\$300 million invested in training since APSI's founding
• Productive relationship with union
• Single union contract
• ~40% of workforce represented by CBA
• PMTC acts as umbrella for 11 unions
• Contract extends to 2015
• Proven ability to match workforce to workload as evidenced by on-time and below budget delivery of last OSG/AMSC ship in 2011
• Successful apprenticeship program since 2004
• ISO 9000 certified labor force

1 600 Total Workforce

Committed to World Class Safety

Key comments

• Highly developed safety program through partnership with other Aker companies
• Strong union partnership around HSE
• Committed to continually improving safety performance
• Decreasing insurance claims and premiums

All Incident Frequency

Track record & backlog

Timeline Capabilities

APSI has built > 50% of all of the large ocean going Jones Act commercial ships delivered since 2000

Process and production efficiencies

• Throughout twelve ship OSG/AMSC series of product tankers, APSI was able to reduce vessel cost by over 30%
• From inception of the yard through 2010, vessel throughput increased to approximately 2.8 vessels per year through continued efficiency improvements and significant workforce training
• Demonstrating APSI's ability to adjust production levels to market demand, APSI significantly reduced vessel throughput in 2011 and now, with improved contracted backlog, management expects throughput levels to exceed levels experienced in 2007–2010

Key comments Annual vessel throughput

Number of product tanker equivalents per year

Continually improving production efficiency to maintain leadership position

Newbuild program | High visibility out 2018

						2014				2015				2016				2017			2018
Counterparty	Type	Unit	Size	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
	Aframax	19	115,000 dwt
	Aframax	20	115,000 dwt
	Product	21	50,000 dwt
	Product	22	50,000 dwt
	Product	23	50,000 dwt
	Product	24	50,000 dwt
	Container	29	3,600 teu
	Container	30	3,600 teu
	Product	"25"	50,000 dwt
	Product	"26"	50,000 dwt
	Product	"27"	50,000 dwt
	Product	"28"	50,000 dwt
						Firm contracts									Options

Innovative delivery model | Korean partners

Delivery model example Sample Korean partners

Aker Philadelphia Shipyard:

• Delivery responsibility
• Hull structure production
• Final assembly of ship components in U.S.
• Testing and commissioning

Hyundai/Samsung co-operation:

• Concept, design and detailed engineering
• Procurement support
• Planning information
• Advanced production methods and expertise

Modularization:

• Completely packaged / skid mounted equipment
• Prefabricated and painted pipe and outfitting components from Korean supplier network
• Structured to comply with U.S. build requirements

Attractive customers and partnerships

ExxonMobil Aframax tankers Crowley partnership

• Contract signed September 2011
• AKPS project value ~\$400M including equipment purchased by buyer
• Samsung Heavy Industries used as design partner
• Vessels to transport ANS crude oil from Alaska to U.S. West Coast
• Deliveries April and Dec. 2014

NB019 on Nov. 19, 2013

• Signed standard shipbuilding contract for four product tankers (21-24) on August 8
• AKPS to invest ~\$115M in vessels 21-24
• Vessels are fully Jones Act compliant, with Crowley 75% owner and 100% technical and commercial manager
• AKPS will enjoy 49.9% economic interest in the deal through a combination of AKPS equity and debt
• Currently working to grow partnership

"Working together to build and deliver these two vessels, APSI and Crowley proved to be a winning team."

– Tom Crowley

Matson Aloha Class Project

Key comments

• Signed contract in Nov. 2013 for two container vessels with repeat customer Matson
• Total contract value of \$418M
• 3,600 TEU; will be largest containerships ever built in the U.S.
• Cash neutral progress payments
• Deliveries both in 2018
• Built ready for LNG conversion

Age Profile (CV & Ro/Ro)

Significant competitive advantages

Competitive Advantages Shareholder Benefits

• State-of-the-art facilities
• Management bench strength
• Strong labor relationships
• Skilled and flexible workforce
• Impressive track-record
• Creative approach to enhancing shareholder returns (e.g. 21-24 JV)
• Advantageous relationships with governmental parties
• Access to global shipbuilding expertise
• Longstanding vendor relationships Built ~3x product tankers as nearest
• competitor

• 100% commercial focus

• High barriers to entry

• Predictable operational performance
• Proven ability to win profitable contracts competitively
• Flexibility across market cycles
• Attractive shareholder returns

Well positioned for shale play and future containership renewals

Management team

Kristian Rokke, President & CEO

• 10 years industry experience
• Previously SVP Operations and steel fabrication manager
• Completing MBA at The Wharton School. Previously studied Economics at Colby College

Dean Grabelle, General Counsel

• Over 15 years of corporate law experience
• Previous experience at Drinker Biddle and Reath LLP
• Studied economics and public policy at Duke University and law at University of Pennsylvania

Jeff Theisen, CFO

• Over 20 years experience in financial industry
• Previously CFO of The Regulus Group, a transaction processing services firm
• Studied accounting at Villanova University
• CPA

Steinar Nerbøvik, SVP Operations

• Over 25 years of industry experience
• Previously the Managing Director of Vard's Langsten Yard and also VP of Projects at APSI
• Studied Ship Engineering at the Norwegian Institute of Technology

Scott Clapham, SVP

• Over 15 years industry experience
• With APSI since inception in 1998; previously Engineering manager and SVP Projects
• Studied naval architecture and marine engineering at the University of Michigan

Bob Fitzpatrick, VP Production

• Over 15 years industry experience
• Joined APSI in 2001 and has held various Production and Quality management roles; VP Production since 2007
• Studied mechanical engineering at Spring Garden College in Philadelphia, PA

Experienced senior management team with deep shipbuilding expertise

Agenda

Company

Market

Financials

Supporting material

Demand driven by need to replace aging Jones Act fleet

Key comments

Vessel age across Jones Act segments

• Jones Act fleet comprised of more than 100 vessels over 10,000 DWT
• While vessels in international trades are typically scrapped after 20 years, the vast majority of Jones Act industry participants have fleets that are 30+ years old
• The containership market has significant potential for newbuilds going forward
• All older steam ships must be removed from service

by 2020 Source: Navigistics Consulting ©, United States Maritime Administration (MARAD) / IHS / Clarksons, Managers

Tight oil revolution

• Tight oil production doubled < 2 years with significant future increases predicted
• Total recoverable reserves estimated to be as much as 120 billion bbls
• U.S. imports of crude trending down
• Existing pipeline and rail infrastructure not able to meet transportation needs
• Tankers offer superior flexibility in transport of oil throughout coastal United States

Continued shift of U.S. refining to Gulf Coast further increases demand for Jones Act tanker vessels Key comments

U.S. Shale Crude Production Forecast

Product tanker market

Key comments

• Fleet utilization currently at 100%
• TC rates reported as high as \$100,000/day in 2013 according to industry sources
• Constrained capacity to build new vessels for fleet renewal and growth. Only two yards with proven track record.
• Estimated 20%+ fuel savings on new generation product tankers vs. most recent deliveries
• Longer term charters being offered at attractive rates

Jones Act Fleet

Representative TCE Rates

Product tanker owners

• Crowley is the largest Jones Act tanker/barge operator & owner
• Industry dynamics continue to change
• AKPS in position as lowest-cost PT builder to opportunistically grow profit sharing assets
• AKPS is opportunistic with respect to its ownership in shipping assets

Includes only companies with > one product tanker | Includes tankers on order | Options included under AKPS | AKPS vessels are owned ≥75% by Crowley 1) OSG ATB fleet includes 2 lightering vessels, which are illustrated separate ly in OSG's own fleet reports

Agenda

Company

Market

Financials

Supporting material

Introduction to the Financials

Revenue and cost recognition principles Shipping asset adjustments

• APSI uses the percentage of completion method for accounting for customer projects in process, which requires the Company to estimate the stage of completion of contract activity at the date of each statement of financial position.
• The stage of completion is based on production hours incurred to total estimated production hours for the project
• Hulls 19 and 20 are treated as one combined project

• As Hulls 17 and 18 were originally being built for APSI's own account no revenue or cost recognition was done until delivery to Crowley. (Hull 17 –August 2012/Hull 18-January 2013)

• The profit sharing component for 17 and 18 are recognized once a firm charter is in place.

• The Company recognized revenues on Hull 17 and Hull 18 based on the firm three year charters in August 2012 and January 2013.
• Payments will be made annually on this amount over three years.
• The profit sharing covers the entire useful life of the vessel so profit sharing revenues may be recognized several times over multiple years

Historical Financials | Income Statement

Condensed Consolidated P&L Key comments

USDm	Q3 2013	Q3 2012	2012a	2011a
Operating revenues	227.7	114.2	141.0	30.6
Operating expenses		(199.6) (100.0)	(123.1)	(33.8)
EBITDA	28.1	14.2	17.9	(3.2)
Depreciation	(5.2)	(0.9)	(1.8)	(4.6)
EBIT	22.9	13.3	16.1	(7.8)
Net financial items	0.1	(0.2)	(0.4)	(1.7)
EBT	23.0	13.1	15.7	(9.5)
Tax (expense)/benefit	(7.9)	(5.0)	(6.2)	5.3
Net Income	15.1	8.1	9.5	(4.2)

• 2011 activity consisted of completion of the OSG/AMSC series and early construction on Hulls 17/18
• 2012 activity involved completion of Hulls 17/18 and start up of the SeaRiver project (Hulls 19/20)
• 2013 activity was mainly comprised of progress on the SeaRiver vessels
• ‒ SeaRiver gross margin expected between 6.0% and 7.0% 1
• Hulls 21-30, including option prices from current discussions, are expected to have avg. gross margin of approx. 13.0% 1
• Company forecasts 2013 full-year EBITDA to be approx. \$30M
• Normalized annual capex levels of approx. \$4.0M

EBITDA margin in general expected to be slightly higher than gross margin ¹

Historical Financials | Balance Sheet

Consolidated Statement of Financial Position Key comments

USDm	30-Sep-13	30-Sep-12	31-Dec-12	31-Dec-11	 Strong balance sheet with USD 95m in cash per
ASSETS					Q3 2013 vs USD 90.5m per Q3 2012
Non-current assets
Property, plant and equipment	55.4	55.4	57.0	54.8
Deferred tax assets	2.7	-	3.5	-	 Reduction in total assets per Q3 2013 compared
Restricted cash	20.0	20.0	20.0	20.0
Other non-current assets	5.3	0.6	3.3	0.7	to Q3 2012 as a result of the completion and sale
Total non-current assets	83.4	76.0	83.8	75.5	of Hulls 17/18
Current assets
Vessels-under-construction receivable			-	-
Work-in-process	-	57.4	67.7	70.1	 Equity of USD 113.5m per Q3 2013 vs USD 97m
Prepayments and other receivables	10.4	9.3	20.5	11.9	per Q3 2012
Income tax receivable
Cash and cash equivalents	95.0	90.5	58.3	18.9
Total current assets	105.4	157.2	146.5	100.9	Metrics per Share
Total assets	188.8	233.2	230.3	176.4
EQUITY AND LIABILITIES
Total equity	113.5	97.0	98.4	88.9
Non-current liabilities					Share Book values per 30 Sept, 2013 USD/NOK 6.1
Interest-bearing long-term debt	3.6	6.2	5.5	31.9
Other long-term liabilities	6.9	5.4	6.0	3.6	Net cash 45.7 NOK
Deferred tax liabilities	6.4	0.3	0.9	0.8
Total non-current liabilities	16.9	11.9	12.4	36.3	Book equity 68.1 NOK
Current liabilities					Share price (10 Jan, 2014) 181.5 NOK
Customer advances, net	32.7	53.6	60.1	-
Interest-bearing short-term debt	2.6	33.5	33.8	20.2
Taxes, trade payables & accrued liabilities	23.1	37.2	25.6	31.0
Total current liabilities	58.4	124.3	119.5	51.2
Total liabilities	75.3	136.2	131.9	87.5
Total equity and liabilities	188.8	233.2	230.3	176.4

• Q3 2013 vs USD 90.5m per Q3 2012
• Reduction in total assets per Q3 2013 compared to Q3 2012 as a result of the completion and sale of Hulls 17/18
• Equity of USD 113.5m per Q3 2013 vs USD 97m per Q3 2012

Metrics per Share

	Per
Book values per 30 Sept, 2013 USD/NOK 6.1	Share
Net cash	45.7 NOK
Book equity	68.1 NOK
Share price (10 Jan, 2014)	181.5 NOK

Financing under Commitments

The Welcome Fund

Facility Key terms

• \$120 million facility to cover Hulls 21-24
• Max funding \$60 million per vessel
• Interest rate: 3-month LIBOR plus 3% (subject to an increase depending upon the lenders cost of funds as defined in the agreement)
• \$60M secured term-loan
• Five year interest only facility with balloon payment at maturity
• Interest at 2.75%
• \$65M secured term-loan
• Five year term with maturity in 2018
• Interest at LIBOR + 700 bps

AKPS has executed commitments on the loans above and currently finalizing loan documents

Historical Financials | Key Financial Ratios

Key Financial Ratios Key comments

		Sep-13	Sep-12	Dec-12	Dec-11
Working Capital	USDm	47.0	32.9	27.0	49.7
Net Interest Bearing Debt	USDm	-76.1	-48.1	-10.1	5.2
Current Ratio	x	1.8	1.3	1.2	2.0
Equity Ratio	%	60%	48%	49%	53%
Debt to Equity	x	0.7	1.1	1.0	0.9
ROE	%	13%	8%	10%	-5%
ROA	%	8%	3%	4%	-2%
ROCE	%	18%	12%	15%	-6%
Dividend Target	USD/share/quarter	0.25

Definitions

Working Capital	Current Assets - Current Liabilities
Net Interest Bearing Debt	((Interest Bearing Debt - Construction Loans) + Customer Advances) - (Cash & Cash Equivalents + Restricted Cash)
Current Ratio	Current Assets / Current Liabilities
Equity Ratio	Total Equity / ((Total Liabilities - Construction Loans) + Total Equity)
Debt to Equity	(Total Liabilities - Construction Loans) / Total Equity
Return on Equity	Net Income / Total Equity
Return on Assets	Net Income / Total Assets
Return on Capital Employed	EBIT / (Total Assets - Current Liabilities)

• AKPS has improved its financial standing in recent years
• ‒ Net cash position has increased significantly over time
• ‒ ROA, ROCE and ROE have increased steadily
• AKPS expects to increase dividends over time
• ‒ Targeting quarterly dividends, starting with USD 0.25 per share in Q2 2014

Summary

Accomplishments since 2011 We will…

• Delivered all vessels on-time
• Delivered all vessels below budget
• Tripled size of organization
• Successfully implemented SAP
• Invested heavily in automated equipment
• Won orders > \$1.1 billion
• Implemented major culture enhancements
• Increased investor communications
• Delivered record earnings

• Positioned AKPS for tight oil revolution

• Deliver on operational commitments

• Capitalize on newbuilding demand and pursue profit sharing opportunities

• Maximize value of shipping assets with opportunistic ownership strategy

• Start paying dividends

Agenda

Company

Market

Financials

Supporting material

Introduction to Converto AS

• Norwegian investment management firm established in 2009 to manage Converto Capital Fund
• Team of 7 investment professionals located in Oslo and Ålesund
• Arm's length relation to Aker ASA

Converto AS Converto Capital Fund

• Closed-end investment fund established in 2009 by Aker ASA
• Seven-year investment horizon
• Originally 11 portfolio companies within seafood, offshore and U.S. Jones Act shipping and shipbuilding

Shareholder structure

Top 20 Shareholders as of 6th January 2014

#	Shareholder	Shares	Percent	Type	Country
1	CONVERTO CAPITAL FUND AS	7,237,631	71.2 %	Comp.	NOR
2	DEUTSCHE BANK AG	1,205,047	11.9 %	Nom.	GBR
3	GOLDMAN SACHS & CO EQUITY SEGREGAT	224,994	2.2 %	Nom.	USA
4	CITIBANK, N.A.	205,176	2.0 %	Nom.	USA
5	SEB PRIVATE BANK S.A. (EXTENDED)	128,902	1.3 %	Nom.	LUX
6	CITIBANK, N.A.	92,350	0.9 %	Nom.	USA
7	NORDNET PENSJONSFORSIKRING	59,868	0.6 %	Comp.	NOR
8	JP MORGAN CLEARING CORP.	59,284	0.6 %	Nom.	USA
9	RO LARS	46,000	0.5 %	Priv.	NOR
10	KOVACI RAMADAN	45,412	0.5 %	Priv.	NOR
11	SUNDE FRANK ROBERT	40,201	0.4 %	Priv.	NOR
12	RIKA AS	21,420	0.2 %	Comp.	NOR
13	WILSON OLE JOHNNY	20,614	0.2 %	Priv.	NOR
14	FIRST CLEARING A/C LLC	20,500	0.2 %	Comp.	GBR
15	THE BANK OF NEW YORK MELLON SA/NVT	20,426	0.2 %	Nom.	BEL
16	BODIN PER ASGEIR	20,000	0.2 %	Priv.	NOR
17	WERNER JØRGEN	15,000	0.2 %	Priv.	NOR
18	CITIBANK, N.A.	14,643	0.1 %	Nom.	GBR
19	STATE STREET BANK AND TRUST CO.	14,498	0.1 %	Nom.	USA
20	HAUGEN JARLE	12,600	0.1 %	Priv.	NOR
	Total top 20	9,504,566	93.5 %
	Other	660,739	6.5 %
	Total	10,165,305	100 %

Source: Oslo Stock Exchange as of 6 January 2014

Track record | Matson Navigation

Key comments

• Delivered four vessels to Matson between 2003 and 2006
• Total order consisted of:
• Three Philadelphia Class CV2600
• One Independence Class CV2500
• Extensive use of in-house Design and Engineering on vessels 001-003

"Matson is very satisfied with the performance of the first two KPSI-built vessels that are now part of the company's Hawaii service…we are confident that these additional two KPSI ships will further enhance the overall quality and operating efficiencies of the Matson fleet."

• Matson Navigation

M.V. Manukai M.V. Maunawili

M.V. Manulani M.V. Maunalei

Track record | OSG & American Shipping

Key comments

• Production started in 2005
• \$1.3+ billion build program
• Delivered 12 vessels from 2007 to 2011
• All vessels were of Veteran Class MT46 Design
• Partnered with Hyundai Mipo Dockyard for Design and Procurement services

"…everyone seems to be taking pride in doing his job…The yard seems to have their act together…very impressed"

• OSG Crew

DRAFT

Track record | Crowley Maritime

Key comments

• Production started in Nov. 2010 (Hull 017) and July 2011 (Hull 018)
• Identical to OSG/American Shipping vessels (Veteran Class MT46 Design)
• Crowley purchased vessels for \$90 million each plus profit sharing component over full life of vessels
• MV Pennsylvania delivered Aug. 2012
• MV Florida delivered Jan. 2013

"Crowley is thrilled to partner with Aker Philadelphia Shipyard and to take delivery of these new Jones Act tankers."

• Tom Crowley, President & CEO of Crowley Maritime

Yard Layout

Aker Philadelphia Shipyard