1. DNV GL © 2015 1 What’s around the Corner? Paal Johansen, VP & Regional Director, Americas New York, 29 th October 2015

2. DNV GL © 2015 SAFER, SMARTER, GREENER DNV GL © 2015 MARITIME 2 Global trends shaping the shipping industry

3. DNV GL © 2015 Four areas with significant impact on shipping 3 World population and economy Information and communication technology Energy Climate change and environment

4. DNV GL © 2015 BIG DATA – DNV GL’s view DEVELOPMENTS TOWARDS 2050  Data explosion  Powering up  Increased connectivity  Software everywhere IMPLICATIONS FOR SHIPPING  More automation  Digital information management  Advanced modelling and simulation tools for design  Increased seafarer welfare and safety

5. DNV GL © 2015 Massive change is ongoing Increasing volume Increasing velocity Increasing variety Increasing veracity Big Data Things become smart Smart products will radically change product boundaries and competition Internet of Things People are connected Things become connected Connectivity Moore’s law turned 50 this year. Experts expect continuation to 2020 Computing power Opportunity & challenge Automating knowledge services 5

6. DNV GL © 2015 The digital universe is exponentially growing 2013  Data created: 4.4 zettabyte (or 4.4 trillion gigabytes)  45% of adults have a smartphone  3 billion connected devices 2020  Data to be created: 44 zettabyte, which is a doubling every two years  80% of adults will have a smartphone  25 billion devices will be connected 6 Sources: IDC 2014, Gartner 2015, Economist 2015 The DU is all the digital data created, replicated and consumed in a single year.

7. DNV GL © 2015 Data generated onboard a modern ship today is at +20 GB per day 7 Source: Maersk 2015 2800 sensors 20 GB per day 7000 channels 200 E/R sensors 1 TB per day for fleet transmitted 5000 data tags

8. DNV GL © 2015 Big Data is already disrupting and creating businesses 8 … and the next is UBER Cargo?

9. DNV GL © 2015 Our customers tell us that Big Data will change the way we work 9 Big Data radically changes operational practices and processes. The winners will be those that take bold decisions, not incremental steps. Data ownership and access rights define competitive advantage. Data is becoming the raw material. Data security and privacy are top on the agenda. Ship owners Ship yards Equipment suppliers Oil majors Oil & gas service suppliers Electrical utilities Energy service suppliers Based on survey performed in mid 2014

10. DNV GL © 2015 Data in a classification society – what is changing? 10  Class societies are always managing data.  We have collected data from ships, analysed them and provided decision support, with the main focus on safety and on performance.  With Big Data becoming available, we expect – easier access to data – real-time availability – advanced analytics and additional advice – more transparency (a general trend)  Core class services will not change in essence, but they will be enriched, the third-party role will likely become more important.  Additional advisory services and software products will become available, adding value beyond what is possible today.

11. DNV GL © 2015 Big data opportunities – a class view 11  Improve knowledge on actual condition of ship and its systems through – analysing more data collected on-board – merging with existing survey data – including data collected by customers – merging with publicly available data  Share systematically information with ship owners to facilitate safer and more efficient ship operations and more effective integrity management.  Enrich existing and create new services related to, e.g., – enhanced survey and inspection services – real-time advisory services

12. DNV GL © 2015 DNV GL Maritime has already big data inspired / ready products ECO Insight Voyage Performance Mgt ShipManager Hull – Integrity Mgt Safety Dashboard 12

13. DNV GL © 2015 ECO Insight – fleet performance at a glance 13  Detailed analysis and timelines for every vessel based on “snapshot reports”  Comparisons within fleet, benchmarks based on peer groups and AIS  Offers multiple filtering  Advanced analytics by DNV GL  “My Dashboard” for teams and individual users  Web access  PDF option for print or mail, option to display in tables  the first Big Data-inspired new DNV GL product

14. DNV GL © 2015 Hull integrity management based on an 3D structural model  Life-cycle access to all information on hull condition  Observations done by crew (text, photos)  Thickness measurements  Fatigue hot spots based on design analysis  Survey records/data 14  ShipManager Hull is Big Data-ready (to take in more data)

15. DNV GL © 2015 Big data challenges – is the maritime industry gearing up for this?  Support rapid technology uptake by maritime industry through – building common information platforms – developing data standards and best practices  Ensure data quality for decision-making by – understanding the data sources – verifying against future standards  Ensure data security related to – safeguarding data ownership and access – protecting against cyber attacks  Build competences and capabilities (fast) 15

16. DNV GL © 2015 SAFER, SMARTER, GREENER DNV GL © 2015 MARITIME 16 Thank you for your attention!