Meriteollisuusyhdistyksensyysseminaari

Tapani Pulli

19.11.2020

AGENDA

2

Market and customers

Meyer Turku

Seven cruise ships in order book – no cancellations

How cruising business is going to recover from the crisis and how we as shipyard and whole network can adopt ourselves to totally new situation will be key for future success

Short term corona crisis

• Production running with 80% capacity, projects progressing relatively well

• No diagnosed cases of covid-19 at the shipyard

• Extensive and multiple measures in place to avoid a local epidemic

• We will continue with the restrictions and release them only gradually

Long term effects and measures

• Customers suffering and the recovery will take time – difficult to predict how much

• We expect no new ship orders in the market until 2023 earliest

• We will need to spread our order book to adopt to customer’s needs and to build a bridge until new orders can be expected

• We have been preparing the shipyard for years for strong growth which now suddenly vanished and therefore we need to restructure the shipyard including temporary and permanent lay-offs

• Most likely output volume will still be one 1 very large cruise ship delivered every year

What we said in METY webinar this spring

3

11.5.2020

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

P&O

SAGA

AIDA

CARNIVAL

RCCL

VIKING

SILVERSEA

TUI

COSTA

Observation date:30.03.20

30.04.

30.04.

30.04.

01.05.

15.05.

11.05.

13.05.

13.05.

28.04.

30.06.

Indication of the shipping companies until when they suspend cruises

SHIPS ON CHAIN

30.06.20

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

P&O

SAGA

AIDA

CARNIVAL

RCCL

VIKING

SILVERSEA

TUI

COSTA

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

P&O

SAGA

AIDA

CARNIVAL

RCCL

VIKING

SILVERSEA

TUI

COSTA 31.07.

31.07.

31.08.

01.09.

15.10.

30.09.

31.10.

11.11.

15.09.

31.08.

Indication of the shipping companies until when they suspend cruises

Observation date:

SHIPS ON CHAIN

30.09.20

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

P&O

SAGA

AIDA

CARNIVAL

RCCL

VIKING

SILVERSEA

TUI

COSTA 31.03.2021

01.04.2021

31.10.

04.02.2021

31.12.

31.12.

31.12.

31.10.

12.12.

31.12.

Indication of the shipping companies until when they suspend cruises

Resumption of some sporadic cruises (‚blue voyages‘)

Observation date:

SHIPS ON CHAIN

16.10.20

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

RCCL

VIKING

SAGA

COSTA

SILVERSEA

P&O

AIDA

TUI

CARNIVAL

31.03.2021

01.04.2021

15.11.

04.02.2021

31.12.

31.12.

30.11.

30.11.

12.12.

31.12.

Indication of the shipping companies until when they suspend cruises

Resumption of some sporadic cruises (‚blue voyages‘)

Observation date:

SHIPS ON CHAIN

04.11.20

2020 2021

Q1 Q2 Q3 Q4 Q1 Q2März Apr. Mai Juni Juli Aug. Sept. Okt. Nov. Dez. Jan. Febr. März Apr. Mai Juni

DISNEY

RCCL

VIKING

SAGA

COSTA

SILVERSEA

P&O

AIDA

TUI

CARNIVAL

31.03.2021

01.04.2021

04.01.2021

03.05.2021

05.03.2021

31.12.

31.12.

30.12.

12.12.

31.12.

Indication of the shipping companies until when they suspend cruises

Resumption of some sporadic cruises (‚blue voyages‘)

Observation date:

SHIPS ON CHAIN

→ forecast before Corona

MILLION PASSENGERS

TODAY (Jan 2020)

CRUISE TOURISTS

Cruise Industry - Tourism

25%

75%

MILLION PASSENGERS

CRUISE TOURISTS

TODAY (Jan 2020)

Cruise Industry - Tourism

Existing Fleet and Orderbook Cruise Ships

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CCL40%

RCL25%

Others13%

NCL9%

MSC9%

Star Cruises3%

Disney Cruise Line1%

CCL27%

RCL23%Others

11%

NCL10%

MSC21%

Star Cruises

5%

Disney Cruise Line3%

CCL37%

RCL25%

Others12%

NCL9%

MSC12%

Star Cruises3%

Disney Cruise Line2%

October 2020

Existing Fleet Orderbook Total Fleet+ =Ships: 362Lower Berth: 597.006

Ships: 110Lower Berth: 236.004

Ships: 472 (-demolished)Lower Berth: 833.010

6 Years of Meyer Turku

Before Corona:

Constant investments

Constant increase in staff

Stable Orderbook until 2025

After Corona:

Investments in place

YT negotiations

Stable Orderbook until 2026

Direct employment effect 9500

13

0

50

100

150

200

250

300

350

2015 2016 2017 2018 2019 2020 2021 2022

Cumulative Investments

0

500

1000

1500

2000

2500

Meyer Turku own employees

MEY

ER T

UR

KU 2020 2021 2022 2023 2024 2025 2026

NB1396CCL

08/2020

NB1395Costa

05/2021

NB1400RCI

05/2022

NB1397CCL

10/2022

NB1404TUI

05/2023

NB1401RCI

05/2024

NB1402RCI

05/2025

2020 2021 2022 2023 2024 2025

ORIGINAL OUTPUT PLAN

Pre-corona Orderbook Scenario MEYER TURKU

MEY

ER T

UR

KU 2020 2021 2022 2023 2024 2025 2026

NB1396CCL

08/2020

NB1395Costa

05/2021

NB1400RCI

05/2022

NB1397CCL

10/2022

NB1404TUI

05/2023

NB1401RCI

05/2024

NB1402RCI

05/2025

MEY

ER T

UR

KU 2020 2021 2022 2023 2024 2025 2026

2020 2021 2022 2023 2024 2025 2026

NEW OUTPUT AND CAPACITY PLANORIGINAL OUTPUT PLAN

NEW

Ø

Ø

New Orderbook Scenario MEYER TURKU

16

THANK YOU!