Feadship, for a few dollars more

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Feadship, for a few dollars more The Feadship story Based in the Netherlands and with roots dating back to 1849, Feadship (First Export Association of Dutch SHIPbuilder).

1 Feadship, for a few dollars more The Feadship story Based in the Netherlands and with roots dating back to 1849, Feadship (First Export Association of Dutch SHIPbuilder). is recognised as the world leader in the field of pure custom superyachts. Because every new Feadship is the best they ever built, all boats in the fleet set a new standard in terms of craftsmanship, design, engineering and construction. It's the relentless pursuit of perfection. All Feadships are created in partnership with clients who invest in a wonderful building experience. They start their project with a blank page and set out to create a superyacht that is unlike any other in the world. In the beginning Feadship has three yacht building facilities in Aalsmeer, Makkum and Kaag, and one design and engineering centre, De Voogt Naval Architects in Haarlem. Formed as a group in 1949, Feadship has roots that can be traced back a further century. The generations of craftsmen who launched iconic boats under the leadership of the De Vries, Van Lent and De Voogt families in the 1800s and first half of the 1900s are an integral part of the Feadship story. Indeed, many of their descendants have continued to create Feadships well into the 21st century. The roots of the Van Lent yard go back to 1849, the first De Vries yard opened its doors in 1906 and the earliest De Voogt designs stem from : The formation of Feadship All three companies that make up the Feadship group served owners around the world before World War II. In that period very few people in Europe could afford to buy luxury yachts. Ever innovative, always adventurous, the De Vries, Van Lent and De Voogt families came together with several other Dutch yards to approach the American market, where sales were booming in the late 1940s. The first meeting of the First Export Association of Dutch SHIPbuilders took place in 1949 in Amsterdam s Rode Leeuw café restaurant. History was made and Feadship was born. The other yards were Van de Stadt (left in 1953), Witsen & Vis (1957), De Vries Lentsch (1958) and Akerboom (1968). Restaurant de Rode Leeuw, Amsterdam

Feadship Capri The 1950s: Early successes Feadship was introduced to the American public at the 1951 New York Boat Show and immediately sold three boats.

They were especially wowed by Feadship s skill with steel, which was rarely used for yachts in North America at the time.

2 Feadship Capri The 1950s: Early successes Feadship was introduced to the American public at the 1951 New York Boat Show and immediately sold three boats. The first new order came a month later for Hilda V. In 1953 Capri was crowned Queen of the 1953 International Motor Boat Show as the high quality offered by Feadship impressed judges and owners alike. They were especially wowed by Feadship s skill with steel, which was rarely used for yachts in North America at the time. As orders started flowing in for motorboats in both steel and aluminium, Feadship stopped building wooden yachts Souris II in 1955 was the last. Feadship was now firmly established in the lucrative American market and coming to the attention of some pretty famous people. These included Malcolm Forbes, who launched the first of three The Highlander Feadships in The 1960s: The brand This decade was a period of steady growth in terms of both reputation and the complexity of the Feadships being launched. Camargo IV (1961), for example, showcased high-tech (for the time) features such as retractable stabiliser fins (which reduced roll by 85%) and air conditioning. These comforts prompted more well-known figures to order custom yachts. They included Henry Ford II (Santa Maria) and Arthur Wirtz (Blackhawk), among others. The relentless pursuit of perfection which already characterised Feadship then, and has continued to do so ever since, was revolutionising

3 the way people saw motoryacht cruising. It was a golden era for new ideas, and fully raised wheelhouses or a genuine trans-atlantic capability were just two of the various markers in construction history to be reached and surpassed during the 1960s. Many of the cool yachts built in this era are leading members of the Feadship Heritage Fleet today. Feadship Camargo IV The 1970s: Larger than life One of the factors in Feadship s rise to prominence was the way in which owner satisfaction translated into repeat orders. The trend accelerated in the 1970s. It was typified by James Ryder, who so enjoyed his first Feadship Jardell when she was launched in 1970 that he immediately ordered a new, larger one, Big R. Sizes continued to grow throughout the decade until 1978, when the giant 65 meter Al Riyadh was launched (it remained the largest Feadship until Wedge Too in 2002). Al Riyadh was a bespoke boat made for clients in the Middle East, and showed without a doubt that Feadship s appeal was going global. Nonetheless, the US remained the company s biggest market and a dedicated Feadship America office was established in The first Feadship with a satcom system was launched in 1979: Daria opened up the market to people who wanted to carry on working while on their yacht. 1980s: Outside influences As the superyacht industry expanded, so too did the different parties with whom Feadship partnered. Lac II had already become the first Feadship to feature the work of an interior designer (Pierre Tanter) in 1975 and Susan Puleo s extraordinary glass interior on Circus II in 1983 showed that this movement was here to stay. The 1980s was also the decade that Feadships started incorporating the work of legendary exterior designers, including the amazing profiles drawn by Jon Bannenberg on yachts like Azteca, Paraiso, New Horizon L, Cedar Sea and the green The Highlander. Feadship s ability to absorb and deploy fresh ideas and influences would prove crucial in the years ahead. Meanwhile, 1984 saw the first Gallant Lady built for Jim and Jan Moran, who would order no fewer than eight Feadships by The Feadship brand had become synonymous with excellence and those who could afford the best now knew to look no further.

4 The 1990s: Bold owners, intrepid motoryachts The 1990s were a time of rapid expansion in the luxury yacht market. Feadship made sure it maintained and extended its leading position via continuous research & development and upgrading of facilities. The ingenuity of Feadship owners helped power this relentless pursuit of innovation and perfection throughout the decade. Virginian set new design and layout standards by having four full decks. Mylin IV was the first Feadship with a bulbous bow. Solemates became the world s first fully MCA-compliant superyacht, while Sussurro featured jet propulsion and speeds as high as 46 knots. No place was off limits to Feadship owners by this time: Méduse and Charade made an epic voyage up the Amazon in 1997 and Battered Bull completed two circumnavigations. The end of the decade also saw Excellence II launched for an owner who was pioneering the construction of Feadships with chartering in mind. The 2000s: Pure custom creations The new millennium saw a surge in demand for very large superyachts. With the resale value of Feadships secure, owners took the custom approach to yacht building to new heights. The wonderful Wedge Too set a new size record and featured an incredible Phillippe Starck- designed oval superstructure clad with oiled teak. Andiamo was the first expedition-type Feadship, created for a lady who loves cruising far seas in exceptional comfort. The 86m speed machine Ecstasea added 20 metres to the length record while combining 30+ knots of gas turbine power with a helicopter hangar hidden in the bow. Predator s owner also required high speeds but wanted this achieved through a revolutionary axe-bow concept. With its low profile and slightly sinister appearance, this sleek seakeeper made clear that nothing was out of bounds for Feadship clients. 2010s: History in the making There have already been a lot of highlights in the period, including Feadship becoming the first western yard to build a superyacht for a client from the Chinese mainland (Blue Sky). Feadship now showcases its quality to a global audience with award-winning masterpieces such as Tango, a superb example of seamless cooperation between builders, naval architects, designers and owners. Sea Owl re-drew the map for bespoke interiors with her 200 hand-carved statues and four-story tree of life staircase. An inspirational owner requested an unprecedented amount of glass on his Venus, and much more besides. Savannah became the first hybrid motor-superyacht in an amazing style. And Feadships continue to grow in size: Mushashi (88m) and Madame GU (99m) led us inexorably to crossing the 100-metre mark with Symphony. Competition has some achievements also. Eclipse for example; by Blohm and Voss (Germany) Eclipse, Fact sheet Yacht Length: 162 m (533 ft) Guests: 36 in 18 cabins Crew: 70

5 Yacht Value: estimated at more than US$ 500 million Owners name: Roman Abramovich (owner of Chelsea) Owners Net Worth: US$ 8.3 Owners company: Gazprom (sold) Owners Country: Russia Now the 2nd largest yacht in the world. Year Yachts sold Length of yachts sold Value of yachts sold Source: boatinternational (in ass. with the superyachts experts), January 2016 Total fleet as per end of year 2015; superyachts. A superyacht is defined as a yacht over 30 meters length, both sail and motor. Feadship services Feadship Charter What better place to spend your holiday than on a luxury yacht? The charter fleet offers a wide range of custom built beauties suitable for any kind of charter experience. They serve a global client base of discerning individuals who appreciate the value of spending their leisure time onboard the world s finest motor yachts. The yacht charter experience can be tailored to meet everyone s needs. An owner of a Feadship can also be supported in chartering the yacht out. The Feadship after sales promise Feadships have always been built to last, and today there are several hundred in the global fleet. Like any other premium product, the world's finest custom yachts must be looked after to the highest standards if they are to stay in peak condition and retain their unrivalled value. The after Sales Services division is dedicated to the care, maintenance and technical support of the Feadship fleet. A highly specialised team will resolve any challenge involving the performance of a yacht and upgrade of operations. Long-term continuity of employment at Feadship means that many of the people who originally built a Feadship are still in place and remember her well. Dedicated teams offer comprehensive back up to captains, engineers, owners and managers of Feadships. Everything from spare parts delivery to technical service visits and product updates is handled with optimal efficiency. It is not always necessary to come to the Netherlands for special maintenance work. An international flying team is ready to serve Feadships around the globe. Together with the worldwide service centres Feadship has an excellent service infrastructure. Preserving the Feadship pedigree Feadship has launched well over 425 superyachts during its long and distinguished history. The vast majority are still sailing today due to their excellent build quality and the love and care with which they have been maintained by their owners. Feadship s heritage fleet is a club of owners of Feadships over 30 years old.

6 Dedicated refit department Over the decades Feadship has carried out various major refit and maintenance projects on the fleet. This was the background to the decision in 2005 to structurally support refits by forming a dedicated Feadship Refits team. Today we provide extensive refits and rebuilds both in Holland and abroad. Projects cover the entire range of refit work, from guest area redecorations, technical upgrades and Class surveys to comprehensive rebuilds that include a hull and superstructure extension. Steve Jordan Steve Jordan is an engineer with exceptional skills with regard to superyachts. He build up the skill level in twenty years of employment at Feadship. One day he left Feadship and went truly global in travelling worldwide and working on superyachts all over the world. Steve considers himself a human resources expert in the way he is able to manage boat crews that operate like clockwork. The teams he normally hires to handle superyachts include captains, captain's mate, boatswain, deck hands, cooks, stewards and household staff. The crew should be able to give either an owner or people who charter a superyacht, an exceptional experience. Steve knows there are quite a number of yacht owners who transport their superyachts in specialized vessels or boats all across the oceans. Those vessels are able to transport superyachts but also other specialized boats which have to be in different places in the world. A traditionally popular route for superyachts is from the Mediterranean to the Caribbean and vice versa, looking at the most fitting weather and environment for the season. Other favourites routes include the East Coast of the US. Some vessels even make a round trip, including port calls in the Caribbean, Florida, Costa Rica, as well as Tahiti, before reaching Sydney and Auckland by the end of January.

Steve works on a new concept in maintaining and refitting a superyacht. What he intends to do is working with a mobile crew on the superyachts when they are in the transport vessel.

In that drydock period he intends to have a crew available who can handle a technical and an interior or colour update.

7 Steve works on a new concept in maintaining and refitting a superyacht. What he intends to do is working with a mobile crew on the superyachts when they are in the transport vessel. In those vessels the ship will effectively be drydocked, only to float when entering and when leaving the transport vessel. In that drydock period he intends to have a crew available who can handle a technical and an interior or colour update. As superyachts will retain their value only when they are kept up to date, both with regard to technique and with regard to interiors and colour schemes. In the three weeks period those vessels cross the oceans he can obviously not match the extensive refits the building yard can deliver, but he can make sure there is a yearly minor update. Steve feels this market is no exception to the rule of thumb that customers are getting interested in keeping the yacht operational (and available for charter) as much as possible, for the longest possible period. Taking into account that charter rates will range from up till over per week; total availability is going to be crucial. Steve estimates that 20% of the total superyacht market is available for charter. That part of the total superyacht fleet will always be in the area where charter is most probable in the period, or booked in advance. Commercially he realizes that he has to find new ways to come up with the commercial initiative needed to secure the business. He plans a market research project in order to find out how he can effectively work on the people who are making the decisions in a market like this. And he realizes one of the

8 issues here is to determine pricing levels for the different refit or maintenance jobs he can execute for his customers. Note: case based on public information with some adjustment, Steve Jordan and questions by R.J. Fetter, Intersumm Questions 1. Perlmutter developed a model of internationalization (EPRG model) that characterizes international markets. Describe the Perlmutter (EPRG) model in relevant detail. Assess the market for superyachts in the context of the Perlmutter model. 2. In strategic planning there are several strategies which could be used, o. value strategies (Treacy and Wiersema) and competitor based strategies (Porter). Describe those strategies in relevant detail. Indicate the strategic direction you would choose to tackle the Superyacht market for Feadship and the refit and maintenance market for Steve Jordan. 3. In the market research project Steve Jordan assesses the commercial viability of the maintenance and refit project in the transport vessels. Describe the structure of a market research plan in general. Execute the chi square test for the outcome of the market survey, indicating whether buying behaviour for the European and the US market differs. Use o. attachment A 4. Howard and Seth developed a model for buying behaviour. Explain the model in relevant detail. Describe the buying process for a superyacht. c. Describe the buying proces for the maintenance and refit service Steve Jordan is going to offer.

9 5. Hofstede developed a model to analyse different cultures. Describe the model Hofstede developed to analyse cultural differences. How would you incorporate the Hofstede model in analysing both the market for superyachts and the market for refit and maintenance. 6. There are a number of ways to establish pricing for a product or service. Indicate which concepts can be used to establish pricing levels. Advice Steve on the way he could develop pricing for his refit and maintenance program (use o. attachment B) 7. In any market there is a need for a communications program. Describe the structure of a communications plan. Develop a communications program for Feadship in relevant detail. c. Develop a communications program for Steve Jordan in relevant detail. 8. Steve asks you to help him putting a sales forecast together for his refit and maintenance program. Based on the information now available, how would you advice Steve. Indicate four areas of sensitivity you would have with regard to this forecast.

10 Attachment A Outcome of market research project with regard to intention to buy. Europe United States Will use refit and maintenance program Will use refit and maintenance program and will continue to do so Will not use refit and maintenance program Will not use refit and maintenance program and will never to so Supporting information on degrees of freedom and reliability Degrees of freedom Reliability 0.95 Reliability ,84 5,02 2 5,99 7,38 3 7,81 9,35 4 9,49 11, ,07 12,83

11 Attachment B Estimated costs of a superyacht. General Turn the key of a 71-meter-plus yacht and 10 minutes later you will have spent 400 ($540) on fuel, according to research by yachting Web site Superyachts.com. Cruise to Porto Cervo in Sardinia in your 50-meter boat, and a berth in the marina will cost you over 2,500 a day, according to Swiss yacht management company Floating Life. Owning a super yacht is obviously an expensive hobby. Super-yacht prices range from around 3.5 million for a 30-meter boat to more than 135 million for a 70-meter-plus mega yacht. But few people realize how the running costs can mount up. Operating a yacht costs approximately 10% of the initial value of the boat every year, according to Tork Buckley, the Côte d'azur-based editor of The Yacht Report. But this does not take into account unanticipated expenses, breakdown, berthing and accessories, which can easily raise costs by another 10%. Fuel A boat measuring more than 70 meters consumes a staggering 500 litres of diesel an hour, according to Superyachts.com and that's only if the engine is on but the boat isn't moving. If you want to actually go anywhere, you will be spending over 2,000 an hour, based on cruising speeds of between 15 and 22 knots. So, a 10-hour cruise in one of the larger motor yachts will cost you over 20,000 in fuel, based on the current price of diesel in France. Smaller yachts can hold around 5,000 litres of fuel, while the larger ones have capacity for up to 400,000 litres. It can cost in the region of 500,000 to fill the tanks of a large yachts. Staff The financial crisis has led to widespread redundancies among yachting staff and pushed down wages, according to Mr. Buckley. But the best captains still charge as much as 20,000 a month while top chefs can command up to 9,000 a month. Depending on the size of your boat, you could also need a captain's mate, boatswain, deck hands, engineers and stewards. The largest yachts may have as many as 50 permanent staff, generating a wage bill of 100,000 a month during the summer.

COLUMBUS FEADSHIP. Builder: FEADSHIP. LOA: 55' 0" (16.76m) Year Built: Model: Motor Yacht. Price: PRICE ON APPLICATION. Location: Netherlands

COLUMBUS FEADSHIP. Builder: FEADSHIP. LOA: 55' 0 (16.76m) Year Built: Model: Motor Yacht. Price: PRICE ON APPLICATION. Location: Netherlands COLUMBUS FEADSHIP Builder: FEADSHIP LOA: 55' 0" (16.76m) Year Built: 1965 Model: Motor Yacht Price: PRICE ON APPLICATION Location: Netherlands Our experienced yacht broker, Andrey Shestakov, will help