Tor Svensen DNV-GL merger: increased safety focus Nor-Shipping press conference,

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger  DNV-GL merger on track  Setting the direction for Class  Increased safety focus  Moving the industry towards better risk management  Strengthening innovation and technology development 2

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger DNV-GL merger on track  December 2012: DNV and GL announced the merger  April 2013: New executive management team announced  Today: - On-going integration planning process in both companies - Competition filing in progress globally - Business as usual for both companies until competition clearance is completed 3

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger 17,000 employees 5,600 maritime employees 2,500 Mill. EURO (2012) 100 countries DNV-GL: A leading classification society 4 Americas 3,000 staff Asia / Oceania 4,000 staff Europe / Africa / Middle East 10,000 staff

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Setting the direction for Class  Continuous drive to improve safety a no.1 priority  Drive the agenda for improved risk management  Leading the industry on technology and innovation by investing significantly in R&D  Strong focus on competence development and the human element 5 A strong and competent Class will help the maritime industry becoming safer and more efficient A strong and competent Class will help the maritime industry becoming safer and more efficient

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Safety trends are negative  The improving trend on safety has reversed  Navigational error still accounts for more than half the accidents and serious incidents  Best safety trend in Offshore Shipping  Increased use of risk management and safety barriers is the way forward 6

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Safety trends and major accidents 7 Source: IHS Fairplay

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Big differences in safety between vessel categories 8  Offshore Supply No. 1 in safety performance  Average accident frequency within the other ship segments are six times that of Offshore Supply in 2012 Source: IHS Fairplay “Other categories”: General Cargo, Tankers, Ro-Ro, Bulk, Container

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Navigational accidents - around 50% of the total 9 Non-navigational Navigational Source: IHS Fairplay

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Our main focus moving forward  Identifying high risk areas  Safety barrier approach to prevent large scale accidents  Focus on risk based rules and survey procedures 10 We aim to drive the industry forward on safety using better risk management We aim to drive the industry forward on safety using better risk management

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger 11 Consequences Barrier 1Barrier 2 Barrier 3 Harm / Loss

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Learning from major accidents  Recent large scale accidents demonstrate the need for effective safety barriers  Costa Concordia, Macondo, Fukushima 12

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Learning from Offshore Shipping  Structured work processes and well trained staff on board technology advanced vessels  Pro-active risk management and barrier approach  Further development of competence standards  A new DPO (Dynamic Positioning Operator) certification concept launched in 2012 to ensure safer and more efficient operation 13

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Embedded software - a new risk area addressed by DNV  Software errors represent a significant source of systems malfunctions and can lead to accidents  DNV launched in 2009 ISDS (Integrated Software Dependent Systems)  ISDS installed onboard more than 10 mobile offshore units and fixed platforms  Introducing the same practices into shipping 14

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Strengthening Innovation and Technology Development  Investing 5% of turnover in R&D  Investing in R&D will be a catalyst for innovation and technology development in the maritime industry  Research in collaboration with the industry through JIPs  Leading to safer and more cost efficient shipping  R&D is a key enabler to developing highly competent people 15

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger The power to take the lead  Increased safety focus - Identifying high risk areas - Safety barrier approach - Goal based rules - Risk based approach towards rules and survey procedures  Superior technological skills and research and innovation competence 16

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Safeguarding life, property and the environment 17

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger 18

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Decreasing likelihood of loss of life in Tanker and Bulk 19

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Decreasing likelihood of loss of life in Tanker segment 20 Source: IHS Fairplay Vessel categories: Tankers (A1)  Tanker segment showing positive trend in terms of fatalities  Trend in light of approximately flat accident trend the past 22 years

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Decreasing likelihood of loss of life in Bulk Carrier segment 21 Source: IHS Fairplay Vessel categories: Bulk Carriers (A2)  Bulk Carrier segment showing similar trend as Tankers

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Set the right direction and be the leader  Rethink the safety approach - Must focus on the big-consequence incidents - How should class address this? - Rethink the safety pyramid - Barrier thinking – risk based rules - Software and complex systems at sea – learning from offshore - Focus on human elements 22

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Big differences in safety between vessel categories 23  Offshore Supply No 1 in safety performance  Oil majors focus on safety in the tanker industry  General Cargo has mixed fleet quality and aging vessels  Average accident frequency within General Cargo is six times that of Offshore Supply in this period Source: IHS Fairplay Vessel categories: General Cargo (A31), Oil (A13), Ro-Ro Cargo (A35), Bulk Dry (A21), Chemical (A12), Container (A33), Offshore Supply (B21)

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Extended and improved focus on safety  Focus on human factors - Safety culture / Safety climate - Human centred solutions - Operational competence - Safety through consensus is yesterday’s solutions  Turn our focus even more into the technological and innovative way to achieve continuously safer shipping 24

© Det Norske Veritas AS. All rights reserved. Strengthening the role of class through the DNV-GL merger Safety first  Safety first – an undisputable goal  Class represents an independent 3rd party  Prevent class from being just a commodity  A strong class concept represents shipping’s future  Together with GL, DNV has the power to take the lead 25