1. Annemarie Dorota Anna Daniel PRESENTATION FOR HOLLAND AMERICAN LINE BY:

2. AGENDA Economical situation Short term strategy and its goals Long term strategy and its goals Creating Competitive Advanteges Summary

3. RECESSION The financial crisis which occured on 2007 is going to affect all of the industries and bring the new strategies for companies that want to succed. Main questions are WHEN it will end up? HOW long the recovery will last?

4. 1 cycle 1800 2 cycle 1850 3 cycle 1900 4 cycle 1950 Railway steel Electrical engineering chemistry Information technology Petrochemicals automobiles Steam engine cotton 5 cycle 2000 6 cycle 2050? KONDRIATIEVS CYCLE KONDRIATIEVS CYCLE

5. HOW LONG RECOVERY WILL TAKE? Stock exchange market annual return 131% Is it possible?

6. HOW RECESSION IS CHANGING CONSUMERS BEHAVIOR? Measurements: Consumer Confidence Index Index of Consumer Sentiment Decrease of households savings

7. WHAT CREATS PREMIUM BRANDS PRODUCTS? Technical amendments Extra Functions Emotional sentiment

8. HOW TO SURVIVE RECESSION? Minimalize costs Restructure organization Drop not profitable products Invest in staff which will generate bigger volume of sale Perceive recession as an opportunity to create advanteges

9. SHORT TERM STRATEGY

10. TOURISM one of the most resilient and dynamic economic sector growing contribution to GDP, in some cases over 10% crucial role in the creation of employment Source: World Tourism Organization

11. TOURISM WORLDWIDE 2020 Source: World Tourism Organization

12. TOURISM WORLDWIDE 2020 Source: World Tourism Organization

13. 15 millions 25 millions 2006 CRUISE INDUSTRY 2015 annual growth 6%

14. EUROPE CRUISE INDUSTRY Source: G.P. Wild (International) Limited and Business Research & Economic Advisors

15. EUROPE CRUISE INDUSTRY Europe looks today as the American market looked 15 years ago in terms of cruise interests and potential Robert Sharak The Cruise Line International Association

16. EUROPE CRUISE INDUSTRY The world leader in building cruise ships Large proportion of its population live relatively close to the sea. direct cruise tourism expenditures estimated grow to 12.7 billion by 2010

17. EUROPE – Germany Decreasing unemployment rate during crisis almost 52% of population is confident that has necessary financial resources More than 56% during holidays spend money for shopping and beaty treatment 46% when deciding on a holiday consider value for money

18. EUROPE – Germany Environmentally friendly The Blue Angel (Blauer Engel) a German certification for products and services that have environmentally friendly aspects.

19. EUROPE - Germany Hamburg Cruise Center 30 million euro mega-ship berth Accommodating ships over 300 metres In 2009 Hamburg expects 140,000 passengers on 90 calls

20. SOCIAL NETWORKING Facebook Second Life LonelyPlanet Newsletters Surveys in Internet

21. GREEN situation According to Bluewater Network during one week a large cruise ship generates: 210,000 gallons of human sewage, 1 000 000 gallons of grey water, 25,000 gallons of oily bilge water, up to 11,550 gallons of sewage sludge more than 130 gallons of hazardous waste, much of which is dumped into the ocean.

22. GREEN REGULATIONS Clean Cruise Ship Act of 2008 to achieve a substantial reduction in water-based pollution in the US. prohibit the discharge of sewage, grey water and oily bilge water within 12 nautical miles of the coast. MARPOL Annex VI reduction in sulphur oxide (SOx) emissions from ships reductions in nitrogen oxide (NOx) emissions from marine engines

23. COST OF DISOBEYING THE REGULATIONS Carnival had to pay 18 million fine for illegal discharges in 2002

24. Fuel as the biggest cost Environmental Regulations Gaining capacity 100 % MAIN PROBLEMS TO FACE Oblozenie 100 % Pricing: Trading down

25. How to solve all of these problems ?

26. LONG TERM STRATEGY

29. FINANCIALS OF EOSEAS 2 330 millions net income in 2008 Growth in revenues of 16 % for the tickets The only company in the world that is included in both S&P 500 and FTSE 100 index Can HAL afford it? 214,5 millions $ per solar energy ship ( 30% more than normal ship)

30. ADVERTISING TOOLS

31. Reality Show TV

32. BENEFITS Low cost of using database from social networking Reducing fix costs by spending 50 % less on fuel Less oil prices dependence Fine avoiding from crossing the regulations First mover advantage Creating new product category and trading up Maintaining premium brand 887 000

33. Thank You for Your time. Question session Thank You for Your time. Question session

34. APPENDIX SLIDES

35. EUROPE European Cruise Council Representing the leading cruise companies operating in Europe to promote the interests of cruise operators with the EU Institutions in all matters of shipping policy and ship operations. to promote cruising by the European public and encourage expansion of the European cruise market. European Cruise Academy planning, preparing and realizing Bachelor and Master Programmes for the cruise-ship industry. It is located in Rostock, Germany.

36. EUROPE The yards in Finland, France, Germany and Italy are the most important suppliers to the market and currently have collectively the following shares of the world total of new orders due for completion from 2007 to 2010: 94% by number; 99% by tonnage; 99% by capacity; and 99% by investment.

37. First mover disadvantages: Risk Cost

38. First mover advantages: Scarce resources can be preempted, e.g. occupation of prime retail locations The ability to register patents and trademarks that will protect the first entrant from future competition. Changing the economics of the market in a way that second entrants will not have an economic justification to enter. This can cause total failure for second-movers who go to large expenses to capture a limited market. Early profits can be re-invested in improving the resource base. Reputation will likely have the advantages that come from suppliers, distributors and customers who are familiar with and loyal to their products. Second-movers tend to suffer inherently from being labeled "copy cats" and their product reputation may be unfairly questioned by the general public. Technological leadership Preemption of scarce assets Switching costs

39. Confidence

40. HOW RECESSION IS CHANGING CONSUMERS BEHAVIOR HOW RECESSION IS CHANGING CONSUMERS BEHAVIOR? MONETARY POLICY FED is determining interest rate changes FISCAL POLICY e.g. tax rebate CCI affects stock market prices CCI

42. HOW RECESSION IS CHANGING CONSUMERS BEHAVIOR? ICS Dollar Valuation Interests of Bonds Stock market price

44. RECESSION

45. Fuel

46. ECONOMIC INDICATORS

53. DID FINANCIAL CRISIS HIT ITS BOTTOM DID FINANCIAL CRISIS HIT ITS BOTTOM? Saivings

54. DID FINANCIAL CRISIS HIT ITS BOTTOM ?

56. Recession in different countries USA Germany and Japan Hungary Poland

57. MEDIA

58. Internet The cheapest medium The fastest in implementation The most frequently used Global medium According to Directorate General Enterprise and Industry 38% of European uses to find holiday

59. Technical information Length: 305 Breadth: 60 Propulsion: 20,000 MW - 12,440 sq meters of sail area - 5 masts Passenger cabins: 1,403 Passenger capacity: 3,311 Gross tonnage: 105,000

60. EOSEAS ADVANTAGES - Using alternative energies for propulsion, thanks to sails mounted up on 5 masts covering 12.440 m² surface - Using natural gas for operating a new generation of generators feeding the ship electrically and supplying for heating and cooling. - Solar panels for feeding the ship electrically and a double skin acting as a natural air conditioning system - Using the energy recovered from the waste treatment - Water recycling - Optimization of hydrodynamics characteristics thanks to an air cushion under the main hull. - Innovative propulsion system - Limitation of air emissions - Recovery of raining waters down from the upper decks

62. HAL PRESENT IN EUROPE UK – P&O Spain – Ibero