What does it take to make electric & hybrid boats mainstream? Welcome, Ladies & Gentlemen and thank you for coming. We would like to share with you our innovations for 2016. Those of you who have been following us, know, that it is our aspiration to bring something new every year. But 2016 is special. So I appreciate that you are with us today. Japec Jakopin & Christoph Ballin 030131MS8_070413_010v5

Intro Every mainstream technology came from a disruptive technology. BUT not every disruptive technology became a mainstream one. Electric and hybrid propulsion are disruptive technologies, but will they become mainstream in boating? What will it take? 030131MS8_070413_010v5

About J&J Design and Greenline Hybrid 300 designs for 55 production boat builders since 1983 60,000 boats built based on J&J designs Greenline Hybrid Pioneering hybrid propulsion since 2009 Most successful hybrid boat 600 hybrid boats in the field worldwide 7 kW to 70 kW electric motors coupled to diesel power up to 800 HP 030131MS8_070413_010v5

About Torqeedo Leader in marine electric propulsion Volume: 60,000 electric propulsion systems in the field. Best performance in addressed segments Latest technologies True international leadership Power classes equivalents from 1 to 80 HP Founded February 2005, headquartered near Munich, subsidiary in Crystal Lake, IL (USA) 100 employees Offering sales and service for electric propulsion systems in >40 countries Source: Torqeedo 030131MS8_070413_010v5

Lessons learned from developing and marketing electric &hybrid propulsion systems Sustainable green boating is possible New & better owner experience Lessons learned Leveraging strengths from electric propulsion and combustion engines Providing AC convenience A winning package will combine convenience, efficiency & value 030131MS8_070413_010v5

Key elements: #1 hybrid diesel-electric propulsion 2 sailing modes: slow and fast need new hull geometries (superdisplacement, catamaran,..) need more energy storage and/or @range extenders@ need larger choice of D/E systems 030131MS8_070413_010v5

Key elements: #2 AC convenience Power consumption Propulsion 24 V hotel loads 110/230 VAC hotel loads 12 V system startup Power Supply Onshore power PV modules Hydro-generation Efficient diesel genset System control Connection box Throttle Display 2 3 2 2 2 3 Storage & conversion 345 V battery 24 V battery 12 V AGM Bi-directional DC/DC converter DC/AC inverter 1 2 4 4 5 4 1 3 2 1 4 1 3 Source: Torqeedo 030131MS8_070413_010v5

Key elements: #3 value use automotive hybrid/electric technology and elements use general-use technology, systems and elements abandon design elements and features which create no value for the customer reduce complexity and cost 030131MS8_070413_010v5

Key elements: #4 User interface providing leading edge user experience The benchmark: Progressive user interface in Tesla model S 030131MS8_070413_010v5

User interface providing leading edge user experience Source: Torqeedo 030131MS8_070413_010v5

Issues to solve Range / Energy storage Better / cheaper batteries Better use of solar power E-power & speed Better hydrodynamics, lower weight More powerful E-motors Better storage capacity (see above) Cost/Value Use automotive elements in boating Use home appliances and general use AC solutions New electric propulsion solutions Convenience – handling – functionality Improve functionality and use of electric hybrid systems Improve charging, inverting Better owner experience (fun, convenience, comfort) Optimised package 030131MS8_070413_010v5

Developments related to automotive electric and hybrid solutions Conclusion Fuel cost Eco-awareness Green legislation Developments related to automotive electric and hybrid solutions Intelligent use of technologies, solutions and materials for better marine electric and hybrid products 030131MS8_070413_010v5

Contact Torqeedo is about making marine mobility cleaner. It is exactly 10 years ago, that we presented here in Duesseldorf for the very first time. Aspiration was to be the spearhead, the pioneer in establishing electric mobility in boating. If we look back over these 10 years, we feel very fortunate, that our work really had an impact in various market segments. That we have changed boating and made it more sustainable in various segments. Electric and hybrid marine propulsion is an attractive market segment and will experience significant growth in the future. Torqeedo is by far the #1 player in marine electric propulsion. In 2016 Torqeedo is also entering the marine hybrid segment, which is so far undeveloped. Over the past years, Torqeedo has developed the prerequisites to continue leading the development in electric and hybrid marine propulsion. In 2016 Torqeedo will conduct another financing round, raising 5-10 EUR millions from existing and potentially new investors. Dr. Japec Jakopin CEO J&J Design +386 59 938 324 japec@jnj.design Dr. Christoph Ballin CEO Torqeedo GmbH +49 (8153) 9215-160 christoph.ballin@torqeedo.com 030131MS8_070413_010v5