Gdansk Shipyard Group Company presentation

Agenda

• About us

• What we do

• What we have

• Where we are

• Potential for further

expansion

GSG

Gdańsk Shipyard

Group

GSG

Towers

Gdańsk

Shipyard

GSG Group

GSG Kooperacja

GSG

Gdańsk

POLAND GERMANY

UKRAINE

BALTIC

SEA

EUROPE

Gdańsk Shipyard is one of the biggest shipyards in Central

and Eastern Europe. Established in 1945, it has a long

tradition in maritime industry. Up to now, it has effected the

deliveries of more than 1000 vessels or hulls. Currently

Gdansk Shipyard has approximately 1800 employees and

it’s steel processing capacity is equal to 150 th tons.

Paid-in Capital: 455 m PLN Location

Shareholders ARP (Industrial

Development Agency) 25,00%

Gdansk Shipyard Group 75,00%

Overiew – Gdansk Shipyard

Products

Ships

Steel constructions

Wind towers

Hulls of specialized ships

Offshore vessels, research vessels

Seismic vessels, trawlers

Elements of offshore platforms

Cranes/ exterior arms

Elements of large steel containers

Constructions and bridges

>50 YEARS EXPERIENCE

COMMENCED IN 2010

COMMENCED IN 2007

Onshore and offshore towers

Current capacity - 100 towers, expected

increase to 400 towers within few years

Foundations sections

Key assets

Operating in

SEMITANDEM method

enabling to work on

two vessels on one

slipway at the same

time.

SL

IPW

AY

P

RO

DU

CT

ION

HA

LL

K1

The biggest production

hall in Middle-Eastern

Europe with steel

processing

opportunities at the

level of 150 th. tonnes

annually.

QU

AY

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PA

INT

ING

AN

D

GR

IND

ING

HA

LL

OU

TF

ITT

ING

AN

D

PR

EFA

BR

ICA

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Gdańsk Shipyard has two quays , with

the total length of almost 900 metres.

Modern painting and grinding hall

equipped with 2 painting and 2 grind

cabins.

Halls with modern equipment like

plasma and gas cutting machines,

overhead cranes, mould clamps and

many others.

Key assets

Baltic Sea

PERFECT LOCATION OF ALL OFFSHORE ACTIVITIES

PLUS

PROXIMITY OF EASTERN MARKETS (BALTIC COUNTRIES, RUSSIA)

Warszawa, listopad 2010

Wind Energy Supply Chain at Gdańsk Shipyard Group

Gdańsk, April 2011

10

Our overall goal is to develop as a world class supplier

Supplying components in the onshore category as a standardised and

modularized market on a low cost and efficient based production

basis to local and regional markets in Eastern and Central Europe

Developing the capability to produce offshore components to

position itself for the market development and to create value to

the stakeholders and thus exploiting the strategic harbor production

facility to offer solutions on a full range level to the maturing offshore wind

industry market.

Full range tubular towers and onshore foundations, and other steel

structures for Wind Energy Industry

Transition pieces and foundation structures for offshore wind

industry; monopiles, jacket structures, tripods and floating

structures

GSG Towers – fast development of capacities, change of Stocznia Gdansk market perception

GSG Towers offer full-scope of wind tower and foundations business

Onshore towers Offshore towers Monopiles/jackets

All locations – as by the end of

the year the New

Painting Line will be ready

Hall 33 will have possibility to

produce thick plate foundations

as well as lower sections of

onshore and offshore towers

In existing K1 line as well

as in all locations

After all investments (value of around 250m

PLN), the workplaces will equal to around

250-300 employees

13

Upgrading the quality program in force

Backwards integration of quality control

Optimizing efficiency by use of quality management programs

FMEA Analysis toolkit

Six Sigma quality control program

Full utilization of equipment and machinery park

Improving productivity enhances competitiveness

Introduction of third customer to the facility

Next steps are in full progress

14

We offer unique competitive advantages to be shared with our customers

Excellent location

Competitive shipping conditions of finished products by vessels or trucks to wind farms construction areas in northern part of Poland with the most suitable wind conditions. Ideally suitable for shipping wind towers to offshore production sites in Northern Europe.

State of the art technology

Construction of fully automated plant, which characterizes in-line production process, and utilizes modern welding, zinc coating, and painting techniques.

Major dedicated player in the specific market

Production based on long-term strategic agreements with large delivery quantities utilizing economies of scale.

Extensive experience in steel constructions production

The group has significant experience in production of steel constructions, particularly in manufacturing of elements for wind towers. Steel construction unit located in Częstochowa in 2008 processed 100 thousand tonnes of plates assigned for steel construction, mainly for wind towers, bridge constructions and elements of cranes.

15

Integrated steel supply secures our joint future

Access to high quality steel manufactured in ISD HCz

ISD Huta Częstochowa is one of the most modern steelworks, characterized by competitive

level of production costs, and the largest manufacturer of thick steel sheets in Poland with output

capacity at the level of 800,000 tons of steel plates in 2008 (and maximum output of 1.2m tons).

Guaranteed availability

Stable agreed deliveries

Optimised stock inventory

Competitive steel prices

Gdańsk Shipyard Group has agreed 10-years agreement for plate

delivery from Częstochowa Steel Plant.

The agreement provides the quarterly indexation clause.

The agreement secures Gdańsk Shipyard Group against

unexpected steel price fluctuations.

From plate mills to cargo lifting, the „snow ball” effect of the development of economy is massive

… but also: dedigners,

technicians, welding

specialists etc.

Qualified employees

Cental location

Low labour cost in comparison to EU average

Polish onshore market potential still unexploited

Access to high quality products and infrastructure

Poland has unique chance to be the European leader in creation of wind energy market

MANUFACTURERS

DEVELOPERS

CONSTRUCTION COMPANIES

ENERGY PRODUCERS

OTHERS

Źródło: EWEA, pracownicy bezpośrednio związani z sektorem

59% work places

16% work places

11% work places

9% work places

5% work places

Manufacturing in this business is key to

development

1. Financing of investments/production – financial

institutions must understand the potential of this market

to offer various instruments.

2. Infrastructure development - (cargo, harbours).

3. Education in all aspects (technology, designers, direct

production).

4. Support of Poland image as attractive place to invest.

Unique chance needs some mechanism in order to support