MacGregor TTS Acquisition Overview

Market Trade tension & the concerns of recession casting clouds; shipowners prioritizing regulatory compliance MERCHANT Soft short term demand continues, RoRo/Cruise/Navy in positive cycle Emerging economies growth insufficient to compensate the slowing growth in advanced economies Clarkson downgraded 2019 seaborne tonne-mile growth forecast from 3.4% to 2.2% in September Bulker, container and tanker demand disappointing, RoRo positive cycle OFFSHORE Oil price supports O&G development though pressured by demand outlook Offshore field development slowly picking up, activities in offshore wind Slow increase in offshore support vessel demand expected, e.g. tugs and research Fishery vessel market more steady from a slower start, promising outlook (e.g. fleet renewal in Russia) SERVICES Ship owners prioritising regulatory compliance retrofits over other spending Ship owner earnings at low level Regulatory driven investment limit owners' ability to spend elsewhere BDI 5+ year high, owners delaying repairs to enjoy high charter rates Financing tight → risk of bankruptcies and further consolidation MACGREGOR 4

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