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January 2016

Content

1. General Overview

2. Quality and HSE Management System

3. DMHI’s ERP System

4. Facilities and Capacities

5. Performance Record

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1. General Overview

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Location

Mangalia Harbor

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Mangalia

Daewoo Mangalia Heavy Industries

DMHI Mangalia

History

EARLY STAGE

INTEGRATION

MODERNIZATION INNOVATION

1974

1997

2 Mai Mangalia Shipyard

Daewoo Brand

DMHI - Most Competitive Heavy Industry in Europe

2008 Present Joint Venture

1974-1978 – Construction of shipyard’s site, Dry Dock No. 1 & 2 1976-1997 – Construction of various newbuilding projects such as Bulkcarrier 65,000 TDW / 100,000 TDW, Crude Oil Tankers of 89,000 TDW, as well as Offshore Jackets and the hull of the Frigate “Marasesti”

1985 – Start operating the 3rd and largest dry dock used for shiprepair business

Jan. 22 1997 – Daewoo-Mangalia Heavy Industries S.A. is founded as a joint venture company between Daewoo Shipbuilding & Marine Engineering Co.,Ltd.(Korea) and 2 Mai Mangalia Shipyard S.A.(Romania) 2004 – DMHI shifts its newbuilding strategy on the construction of complete big size commercial vessels only (Panamax / Post- Panamax Containerships, Panamax Tankers, Capesize BC) End 2007 – DMHI stops its ship repair business activity in order to construct only large-size new buildings

2008~2009 – Expansion of the shipyard site for new assembly and painting facilities and conversion of Dry Dock No.3 for newbuilding activity 2009 – Delivery of the biggest vessels ever built in Black Sea and Mediterranean Sea area : > 5,905 TEU for Hamburg Sud/Germany > 180K Capesize B/C for Tsakos / Greece 2011 – Setting a record in number of vessels delivered: 11 vessels, of which 5 Containerships, 3 Bulk Carriers, 2 AHTs and 1 submersible drilling barge 2015 – Delivery of 2 unit of 9,100 TEU Containership for Capital Ship Management, which is the biggest vessel ever built in the Black Sea and Mediterranean Sea area

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DSME (Korea) Daewoo Shipbuilding & Marine Engineering

51%

ROMANIAN GOVERNMENT

2 Mai Mangalia Shipyard

49%

Shareholder Structure

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Organization Chart of DMHI

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HULL OUTDOOR DIVISION

OUTFITTING DIVISION

PAINTING DIVISION

PRODUCTION MANAGEMENT DIVISION

` MANAGEMENT UNIT PRODUCTION UNIT

VICE PRESIDENT

PRESIDENT & CEO

BOARD OF DIRECTORS

QUALITY / HSE MANAGEMENT DIVISION

INOVATION OFFFICE

ADMINISTRATION MANAGEMENT DIVISION

TECHNICAL SUPPORT DIVISION INDOOR DIVISION

Organization & People

DMHI 2,512 employees

Subsidiaries 1,083 employees

Subcontractors 4,746 employees

TOTAL 8,341 employees

As of December 2015

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INTERNAL SUBCONTRACTORS 4,746 employees

PRODUCTION (WORKERS AND FOREMEN)

1,694 employees

Business Concept

An industry leader in the global shipbuilding and offshore market. Most advanced competitive edge shipbuilding and offshore.

Vessel with high quality & technology

DESIGN

DSME Initial & Basic Design

(R&D, Model Test)

DSME / DSEC(*) Detail Engineering

(Class Approved Drawing)

DMHI Production

Design

SUPPLY CHAIN

DSME / DSEC Supply for Main Equipment

(Mainly Korea & Far East)

DMHI Purchase Bulk Material

(Plate / Profile / Paint)

DMHI Storage and Inventory Management (through ERP System)

PRODUCTION

DSME Know-How

Method / Machine

DMHI Production Planning

(through ERP System)

DMHI Production

DMHI Quality Control at DSME

Standard

Continuous know how transfer Client satisfaction

DSME Marketing Engineering Tendering &

Concept Design

DMHI Production Engineering Support

DMHI HSE Strong Policy

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(*) DSEC: DSME subsidiary for engineering and procurement

2. Quality and HSE Management System

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Integrated Management System (IMS) - Since December 2010

Implementing the Integrated Management System for Quality, Environmental and

Occupational Health & Safety, designed and documented in accordance with requirements of

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SănătateHealth

SiguranţăSafety

MediuEnvironment

CalitateQuality

HSE Statistics

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Lost Time Incident Rate (LTIR) = (no of Lost Time Incidents) x 200,000 Total Working Hours Total Recordable Incident Rate (TRIR) = (no of Total Recordable Cases x 200,000) Total Working Hours Fatalities = total no. of fatalities cases, recorded during one year; Pollutions = no. of pollutions (oil spills, etc.) recorded during one year; * Formulas source : Occupational Safety & Health Administration, United States

Department of Labor (www.osha.gov)

HSE Indicators 2012 2013 2014

LTIR 0,20 0,45 0,33

TRIR 0,39 0,50 0,56

Fatalities 0 0 1

Pollutions 0 0 0

3. DMHI’s ERP System

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DMHI’s ERP System - MAGICS

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Production Management System

Basic Information

Hull BOM

MAGICS

Production Planning System

Quality Management System Design Management System

Material Management System

Outfitting BOM

Basic Information

PO Request

Purchase Order

PML

Material Delivery

Material Arrival

Inventory/Closing

Owner Supply Item

Basic Information

Production Design

Production Plan

Logistics

Production Analysis

Work Order Basic Information

Long Term Schedule 1 Month Schedule

3 Months Schedule

Inspection Plan

Inspection Request Inspection Schedule

Inspection Results Quality Problem

Quality Analysis

Basic Information Drawing Plan

Drawing Results Drawing Analysis

Document Control

Subcontractor Work Control

Block Control

[ MAGICS Log-in Screen ]

Human Resource Management

Basic Human Mgmt Salary Calculation

Job Evaluation Training & Education

Facility Management System

Basic Information Preventive Maintenance

Break Down Maint. Analysis

4. Facilities and Capacities

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Docks Length Width Depth Cranes

Dry Docks

No. 1 302M 48M 9M G 2 x 480T

J 2 x 120T

J 1 x 50T

J 2 x 16T No. 2 320M 48M 9M

No. 3 360M 60M 13M

G 1 x 1,000T

J 2 x 50T

J 2 x 16T

YARD ENVIRONMENTAL DATA Water Depth : 8 ~ 11 m Wave Height : 0.2 m Tide : Null Current : Null Ground Elevation : 3 m above MSL (quay) Median annual temperature : 12.4°C Thermal amplitude : 23…25°C Climatic type : Moderate Dry

ANNUAL PRODUCTION CAPACITY Production capacity : 12 Vessels / year, in equivalent of 12 vessels/year of 180,000 DWT bulk carriers and / or 11,000 TEU containerships. Site Area : 980,000 m2 Outfitting Quay : 1,590 m Covered Shop : 95,960 m2 Storage Area : 6,500 m2 (Covered) Steel Stock : 13,800 m2

35,000 Ton Steel Cutting : 15,000 Ton/month Pre-Erection Platform : 20,000 m2

DMHI’s Production Facilities

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Shipyard Layout & Natural Environments

1. SSY - Steel Stock Yard 2. TLS - Treatment Line Shop 3. CAS – Cutting & Assembly Shop 4. CSS – Component & Sub-ass’y Shop 5. OHS – Outfitting & Hull Shop 6. EAS – Engine Ass’y Shop 7. CMS – Comp. Fabr. & Maintenance shop 8. BTC – Blasting Cells (Old) 9. PTC – Painting Cells (Old) 10. BPC – New Blasting & Painting Cells 11. SBC – Steel Outfitting Blasting Cells 12. UGS – Unit Module & Galanization Shop 13. APS – Accommodation Preoutfitting Shop 14. HCS – Hatch Cover Grand Ass'y Shop 15. MES – M/E Storage Shop 16. PBS – New Panel Block Shop 17. NGA – New Grand Ass’y Platform 18. QAP – Quay “A” Platform 19. QBP - Quay “B” Platform 20. QCP - Quay “C” Platform 21. PEP – Pre-erection Platform 22. 1DK – No.1 Dry Dock 23. 2DK – No.2 Dry Dock 24. 3DK – No.3 Dry Dock

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Facilities for Hull Fabrication

Activity/Layout Code Facilities Concept / Remarks

Steel Stock Yard (SSY)

Capacity (Area, Bays): Cranes:

~35,000 ton (~16,100 m2, 6 ) 8 x 20 ton mag. O/H

Treatment Line Shop (TLS)

Capacity (Lane): Max. Breadth & Length:

~30,000 ton / month, (2 Lanes) 4.2 m, 15 m

Modern facilities with blasting system, dry oven and marking

Cutting (CAS/CSS/PBS)

Plasma (Dry & Wet) : Oxy-Gas: Oxy-Gas Parallel Cutting:

~15,000 ton / month 4.2 m 15 m

− Marshalling systematization (DSME know-how);

− Automatic beveling

Bending (CAS)

Equipments: − 2,000 ton roll bending − 1,000 ton press − Profile bending

Maximum length of plate in case of 2,000 ton roll bending: 13 m

T-Bar Fabrication (CMS)

Area: Automatic T-Bar Line:

1,836 m2 − Edge preparation − Automatic Weld, Straightening

The facility has two N/C Oxy-Gas cutting machines. Feeding Roller conveyor

Hatch Cover Fabrication (OHS / HCS)

Indoor: Outdoor: Cranes:

3,504 m2 , 3 bays

2,880 m2, 2 bays

2 x 50 ton, 2 x 5 ton, 1 x 3.2 ton

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Facilities for Outfitting Fabrication

Activity/Layout Code Facilities Concept / Remarks

Pipe Fabrication (OHS)

Bays: Bending M/C: Pipe Rotators:

3 5 10

Facilities based on JIS Standard TIG 300, Semi-auto Arc CO2

Steel Outfitting Fabrication (OHS)

Bays: Blasting & Painting:

2 Separate shops inside shipyard

Galvanizing (UGS)

Area (bays): Treatment Baths: Galvanizing Baths:

1,000 m2, (1) 9 7.5 m x 1.5 m x 1.7 m (435~450°C)

Automatic control of temperature and environmental friendly

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Facilities for Indoor Assembly

Activity/Layout Code Facilities Concept / Remarks

Minor Assembly (CAS/CSS/PBS)

Cutting & Assembly (CAS): Components & Sub-Ass’y (CSS): Panel and Block (PBS) :

2 (296 m x 36 m x 25 m) 1 (296 m x 36 m x 14 m) 6 (60 m x 24 m x 10 m)

Largest 167 m x 45 m x 39.8 m

Panel Lines (CAS/PBS)

Cutting & Assembly (CAS): Panel and Block Shop (PBS):

2 (296 m x 36 m x 25 m) 1 (296 m x 36 m x 14 m) 1 (300 m x 32 m x 36.3 m)

PBS –Semi-automatic line

Curved Assembly (CAS/NGA)

Cutting & Assembly (CAS): New Grand Assembly (NGA): Gantry Cranes:

1 (296 m x 36 m x 25 m) 1 (296 m x 36 m x 14 m) 1 x 250 ton / 4 x 30 ton

Largest 270 m x 22.5 m Submerged Arc Welding with metallic powder (FGB)

Grand Assembly (NGA/PBS)

NGA Platform and Cranes: PBS – Panel Line Output:

1 x 250 ton / 4 x 30 ton 600 ton Block Transfer Car O/H Crane: 250 ton

PBS: Automated panel line Max. block size: 30 m x 30 m

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Facilities for Indoor Pre-outfitting

Activity/Layout Code Facilities Concept / Remarks

Unit Module Fabrication

(UGS)

Area: Cranes:

1,000 m2, 1 bay 2 x 10 ton O/H

Maximize the productivity of pre-outfitting through pre-assembly of: supports, pipes, equipment, electrical etc.

General Pre-outfitting Shop

North Platform Bays: Cranes: NGA Bays: Welding: Tools:

4 (largest: 22m x 20m x 12m) 4 x 2.0 ton (1 for each bay) 3 (largest: 25m x 25m x 16.5m) Semiautomatic CO2 Specialized related Pipe, Steel Outfitting, Electrical – Pneumatic impact wrench, etc.

Pre-outfitting ratio: 85 - 90% Similar with Top Korean Shipyard

Accommodation Pre-Outfitting (APS)

Dimensions: Cranes:

34 m x 18 m x 10 m, 2 bays 1 x 3.2 ton O/H

Pre-outfitting ratio: 80 – 85%

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Facilities for Indoor Blasting and Painting

Activity/Layout Code Facilities Concept / Remarks

Block Blasting Cells (BTC)

No. of Cells: Blasting Nozzles:

2 (30m x 22m x 15m) 16 sets

Steel shot blasting

Block Painting Cells / Shelters (PTC)

No. of Cells: Painting Shop: Shelter:

1 (36m x 22m x 15m) 1 (97m x 22m x 13.5m) 1 (40m x 22m x 10m)

Steel shot blasting

New Block Blasting Cells (BPC)

No. of Cells: Blasting Nozzles:

2 (32.5mx31mx18.5m) 12 sets

Steel shot blasting Environmentally friendly

New Block Painting Cells (BPC)

No. of Cells: 2 (32.5mx31mx18.5m ) Environmentally friendly

Steel Outfitting Blasting Cells (SBC)

No. of Cells:

2 (18.4m x 17.6m x 9m) Steel shot blasting Environmentally friendly

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Facilities for Pre-erection & Outfitting

Activity/Layout Code Facilities Concept / Remarks

Pre-erection Platform For Dock no. 1 & 2

(PEP/1DK/2DK)

Area: Cranes (Working in Tandem): Jib Cranes:

20,000 m2 2 x 480 ton (850 ton) 2 x 120 ton, 2 x 50 ton, 2 x 15 ton

Pre-erection welding joint paint remedy is performed before erection in Dry Dock

Pre-erection Platform For Dock no.3

(3DK)

Total Area: Goliath Crane: Jib Cranes:

16,800 m2 1 x 1,000 ton 2 x 50 ton, 2 x 15 ton

Pre-erection welding joint paint remedy is performed before erection in Dry Dock

Transportation

Heavy Transporters: 1 x 500 ton 2 x 450 ton 1 x 330 ton 1 x 138 ton

450 ton units - possibility to work in tandem: −Maximum capacity 800 ton −Maximum load dimension:

52m x 22m x 15m

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Facilities for Erection in Dock Stage

Activity/Layout Code Facilities Concept / Remarks

Dry Dock no.1 (1DK)

Dimensions (Water Draft): Gantry Cranes (Tandem): Jib Cranes: Utilities:

302m x 48m x 9m (7.35m) 2 x 480 ton (850 ton) 2 x 120 ton, 2 x 50 ton, 2 x 15 ton Electric power, CO2, O2, LPG, Compressed Air

Above Sea level with 9 m, in line with Dry Dock no. 2 Launching of Dock no. 1 shall be related with Dock no. 2 launching/partial launching

Dry Dock no.2 (2DK)

Dimensions (Water Draft): Gantry Cranes (Tandem): Jib Cranes: Utilities:

318m x 48m x 18m (7.35m) 2 x 480 ton (850 ton) 2 x 120 ton, 2 x 50 ton, 2 x 15 ton Electric Power, CO2, O2, LPG, Compressed Air

Sea Level, aligned with Dry Dock no.1

Dry Dock no.3 (3DK)

Dimensions (Water Draft): Gantry Cranes: Jib Cranes: Utilities:

360m x 60m x 13m (8.5m) 1 x 1,000 ton 2 x 50 ton, 2 x 15 ton Electric Power, CO2, O2, LPG, Compressed Air

Sea Level

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Facilities for Outdoor Outfitting in Quay Stage

Activity/Layout Code Facilities Concept / Remarks

Quay A (QAP)

Length (Platform Area): Jib Cranes: Bearing Capacity: Utilities:

620m (620m x 20m) 1 x 50 ton, 1 x 15 ton 100 ton / m2 Electric Power, CO2, O2, LPG, Compressed Air

Quay B (QBP)

Length (Platform Area): Jib Cranes: Bearing Capacity: Utilities:

430m (430m x 20m) 1 x 120 ton, 1 x 15 ton 200 ton / m2 Electric Power, CO2, O2, LPG, Compressed Air

Quay C (QCP)

Length (Platform Area): Jib Cranes: Bearing Capacity: Utilities:

540m (540m x 10m) 2 x 50 ton 200 ton / m2 Electric Power, CO2, O2, LPG, Compressed Air

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5. Performance Record

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Barges: 5 Pontoon Barges: 46

Performance Record (After Joint Venture)

AHT: 2

Drilling Rig Barge: 1

PSV: 3 OSV: 3

Bulk Carriers

Capesize: 7 Kamsarmax: 6 Handysize: 13 Coaster: 30 Coaster Combi Freighter: 6

Tankers

Crude Oil Tanker: 4 Product Carrier: 3 Chemical: 5 Handymax Juice Carrier: 2

Containerships

Post Panamax: 18 Panamax: 10 Feeder: 43

Pure Car Truck Carriers

6,500 CEU PCTC: 2

Total: 148

Commercial Vessels

Total: 3 Floating Docks

Total: 9

Offshore and Offshore Support Vessels

Total: 51 Barges

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L x B x D x d 228.0 x 32.2 x 19.8 x 12.2 (m) Class American Bureau of Shipping Units built 3 (HNs. 5003 / 04 / 05) Buyer / Actual Owner LMZ – Greece / ELETSON Corporation - Greece

DMHI’s New Building Performance Record 69,000 TDW Crude Oil Tanker

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L x B x D x d 275.0 x 32.2 x 21.5 x 12.0 (m) Class Germanischer Lloyd Units built 4 (HNs. 4052 / 53 / 54 / 55) 4 (HNs. 4062 / 63 / 64 / 65) 2 (HNs. 4073 / 75) Buyer NSB – GEBAB – CONTI / Germany

DMHI’s New Building Performance Record 4,860 TEU Containership

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L x B x D x d 272.0 x 40.0 x 24.2 x 12.5 (m) Class Germanischer Lloyd Units built 3 (HNs. 4066 / 67 / 68) Buyer Hamburg Süd / Germany

DMHI’s New Building Performance Record 5,560 TEU Containership “Monte Class”

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L x B x D x d 286.45 x 40.0 x 24.2 x 12.5 (m) Class Germanischer Lloyd Units built 3 (HNs. 4069 / 70 / 71) Buyer Hamburg Süd / Germany

DMHI’s New Building Performance Record 5,905 TEU Containership “Rio Class”

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L x B x D x d 292.0 x 45.0 x 24.7 x 16.5 (m) Class BV (3 units) / DNV (1 unit) / LRS (1 unit) / GL (2 unit) Units built 7 (HNs. 1045 / 46 / 47 / 48 / 50 / 51 / 52) Buyer Tsakos (2 units) / Greece Anangel Maritime Services (3 units) / Greece Claus Peter Offen (2 units) / Germany

DMHI’s New Building Performance Record 180,000 TDW Bulkcarrier

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L x B x D x d 270.4 x 40.0 x 21.7 x 12 (m) Class Germanischer Lloyd Units built 6 (HNs. 4082 / 83 / 84 / 85 / 86 / 87) Buyer Claus Peter Offen / Germany

DMHI’s New Building Performance Record 5,550 TEU Containership

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L x B x D x d 48.87 x 13.8 x 7 x 5.2 (m) Class Lloyd’s Register Units built 2 (HNs. 6003 / 6004) Buyer AHT Commander / Germany

DMHI’s New Building Performance Record 100 TBP Anchor Handling Tugboat

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L x B x D x d 229.0 x 32.26 x 20.2 x 12.2 (m) Class 3 Bureau Veritas / 1 NKK / 2 LR Units built 6 (HNs. 1053 / 54 / 55 / 56 / 57 / 58) Buyer Larus (2 units) / Greece Dalnave (2 units) / Greece KC Maritime (2 units) / Hong Kong

DMHI’s New Building Performance Record 82,000 TDW Bulkcarrier

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DMHI’s New Building Performance Record 8,600 TEU Containership

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L x B x D x d 299.9 x 48.4 x 24.8 x 14.5 (m) Class Lloyd’s Register Units built 4 (HNs. 4091 / 92 / 93 / 94) Buyer Zodiac Maritime Agencies Ltd. / U.K

DMHI’s New Building Performance Record 6,500 CEU Pure Car Truck Carrier

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L x B x D x d 199.90 x 32.26 x 32.59 x 10 (m) Class Det Norske Veritas Units built 2 (HNs. 4401 / 4402) Buyer Ocean Yield AS / Norway

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DMHI’s New Building Performance Record 9,100 TEU Containership

L x B x D x d 299.9 x 48.4 x 24.8 x 14.5 (m) Class Lloyd’s Register Units built 2 (HNs. 4095/4096) Buyer Capital Ship Management Corp. / Greece

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DMHI’s New Building Performance Record 112,000 TDW Product Carrier

L x B x D x d 249.9 x 44.0 x 21.2 x 15 (m) Class American Bureau of Shipping Units built 3 (HNs. 5006/5007/5008) Buyer Eastern Mediterranean Maritime Ltd. / Greece

DMHI’s Orderbook

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TYPE CAPACITY NUMBER OWNER COUNTRY

Product Carrier 112,000 TDW 1 Eastern Mediterranean

Maritime Greece

Containership 9,100 TEU 2 Capital Ship Management Greece

Crude Oil Tanker 112,700 TDW 9 Tsakos Energy Navigation Greece

Bulk Carrier

180,000 TDW

3 Anangel Maritime Greece

Crude Oil Tanker 112,000 TDW 2 Minerva Marine Greece

Crude Oil Tanker 156,000 TDW 4 Maran Tankers Management

Greece

DAEWOO-MANGALIA

HEAVY INDUSTRIES

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