Bachelor of International Sales and Marketing

Professionsbachelor International Handel og Markedsføring

MacArtney A/S

Written exam 1st semester/Skriftlig eksamen 1. Semester

7th January 2015/7. Januar 2015

The basis for the company´s sale / Virksomhedens salgsgrundlag

This examination paper consists of four assignments. For grading purposes, the
assignments are given the following approximate weights

Dette opgavesæt består af 4 opgaver, der indgår i bedømmelsen af den samlede

opgavebesvarelse med følgende vejledende vægte:

Assignment 1/Opgave 1: 30%

Assignment 2/Opgave 2: 25%

Assignment 3/Opgave 3: 20%

Assignment 4/Opgave 4: 25%

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Contents

Assignments (English) 3

Opgaver (dansk) 5

MacArtney solutions 7

Background 7

Organic growth 8

Underwater Technology 8

MacArtney products, systems and solutions 9

MacArtney steps up presence in offshore Asia 12

MacArtney Singapore opens slip ring service facility 15

Cledirsa set to represent MacArtney in Uruguay and Paraguay 18

Appendix 1: Financial highlights in 1.000 DKK 20

Appendix 2 MacArtney’s global presence 21

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Assignments (English)

Assignment 1 (30%)

MacArtney is a systems supplier in a highly technology driven market, where customers

often are global corporations. This places great demands on a relatively small company.

Describe the buying behavior in the market and with this in mind, please explain how they
can optimize or adjust their set-up in such a way that they can achieve their goals of
continued growth.

Assignment 2 (25 %)

Assignment 2.1 (5%): In appendix 1 you find an extract from MacArtney’s latest annual
report. Calculate key ratios on the profitability and solvency of the company and comment
on the development.

As a supplier to the Oil and Gas Industry as well as the Renewable Energy Industry,
MacArtney is also a part of the Danish Offshore Cluster that has its home in the Energy
Metropolis of Esbjerg. According to a mapping of the Danish Offshore Industry made by the
Region of Southern Denmark the total revenue of the offshore companies has grown by 16
% from 2010 to 2012. Asked about their future expectations the offshore companies say
that they expect the employment to grow from 27.000 people in total in 2012 to 36.000
people in 2015 and further to 50.000 in 2020 – and the expectations of growth in revenue
are correspondingly high.

Assignment 2.2 (5%): How do the above mentioned numbers for the Offshore Industry
correspond to the growth that MacArtney has experienced, and the goal of future growth
that MacArtney has?

Assignment 2.3 (5%): What potential problems might there be with choosing the Offshore
Industry as a benchmark to MacArtney? What could be done to address these problems and
make a better basis for benchmarking – and what information should be collected in order
to perform a financial benchmarking?

MacArtney is considering which markets to target in their pursuit of new customers. The
impressive growth expectations of the Offshore Industry make it seem obvious to
MacArtney to aim at that industry. However, competition is tough and other industries offer
opportunities of getting new customers – and keeping them – at less effort.

MacArtney estimates that the yearly profit from an average, new customer in the Offshore
Industry will be 3 million DKK. However, competition is tough, and MacArtney therefore also
expects that the average customer acquisition cost will be very high, approximately 5
million DKK per customer, and that the customer retention rate – the probability of keeping
a particular customer - will be as low as 75% per year. In other industries the average
acquisition cost and yearly profit is estimated to be half of the amounts of the Offshore
Industry, and the retention rate to be 10%-points higher than that of the Offshore Industry.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Assignment 2.4 (10%): In a 6 year perspective should MacArtney try to get new customers
from the Offshore Industry or from other industries? You may assume a cost of capital of
8%.

Assignment 3 (20%)

Referring back to your answer in question 1 regarding MacArtneys set-up, please discuss
the advantages and disadvantages of MacArtney’s strategy of growing organically.

Assignment 4 (25%)

Macartney A/S is considering placing an advertisement in several international magazines

with the following text: Our specialized underwater technology design has a wide range of
systems specially made for and with you in focus – always first class quality in opposition
to the following firms (and here the name of the competitors are mentioned). We are the
best in the world!

Assignment 4.1(10%): Describe and analyze the legal problems and consider whether the
advertisement in question is in accordance with current rules

Macartney A/S is sending some of their equipment to a buyer in Spain named ’’Submarine
III’’. The goods are placed directly at a large facility in the nearer of ‘’Submarine III’’ and
after 4 months the factory needs the equipment for a job in Asia. When they start using the
equipment it suddenly stops functioning and ‘’Submarine III’’ therefore wants to return the
goods and have compensation for their loss

Assignment 4.2 (10%): Which legal advices would you give the manager at ‘’Submarine III’’

Macartney A/S is normally having a standard in their contract that any dispute has to be
settled in court in Copenhagen. They have heard that there might be alternatives to the
court settlement but are uncertain of the alternatives and the differences between the
different tools

Assignment 4.3 (5%): Which other possibilities are there for a settlement of dispute and
what is the difference between the different possibilities

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Opgaver (dansk)

Opgave 1 (30 %)

MacArtney er system leverandør i et meget teknologi drevet marked, hvor kunderne ofte er
store globale koncerner. Dette stiller store krav til en relativ lille virksomhed.

Beskriv købsadfærden i markedet og på baggrund heraf redegør for, hvordan

virksomheden kan optimere eller justere deres setup således, at de kan nå målene om
fortsat vækst.

Opgave 2 (25 %)

Opgave 2.1 (5%): Tal fra MacArtney’s seneste årsregnskab er vedlagt i uddrag i bilag 1.
Udregn centrale nøgletal for virksomhedens rentabilitet og soliditet og kommenter på
udviklingen.

Som leverandør til olie- og gasindustrien og offshore vindindustrien er MacArtney også en

del af den danske Offshore Klynge, som har hjemsted i Dannmarks EnergiMetropol,
Esbjerg. Ifølge en kortlægning af den danske offshore branche, som Region Syddanmark
har foretaget, er omsætningen i offshore branchen steget med 16 % fra 2010 til 2012. Hvis
man spørger offshore-virksomhederne om deres forventninger til fremtiden, siger de, at de
forventer beskæftigelsen vil stige fra 27.000 beskæftigede i alt i 2012 til 36.000 i 2015 og
yderligere til 50.000 i 2020 – og forventningerne til omsætningsvækst er tilsvarende høje.

Opgave 2.2 (5%): Hvordan stemmer de ovennævnte tal overens med den vækst, MacArtney
har oplevet, og det mål for fremtidig vækst, som MacArtney har?

Opgave 2.3 (5%): Hvilke potentielle problemer kan det give at vælge offshore branchen
som benchmark for MacArtney? Hvad kan der gøres for at adressere disse problemer og
dermed forbedre grundlaget for benchmarking – og hvilke informationer skal samles for at
foretage en finansiel benchmarking?

MacArtney overvejer i hvilke markeder, de skal forsøge at skaffe nye kunder. De

imponerede vækstforventninger i offshore branchen får det til at virke oplagt for
MacArtney at forsøge sig her. Men konkurrencen er hård og i andre brancher er der
mulighed for at skaffe nye kunder – og beholde dem – med mindre indsats.

MacArtney forventer, at den årlige indtjening på en gennemsnitlig, ny kunde i offshore

industrien vil være 3 millioner DKK. Men da konkurrencen er hård, forventer MacArtney
også, at den gennemsnitlige omkostning ved at erhverve kunderne vil være høj, ca. 5
millioner DKK per kunde, og sandsynligheden for at fastholde kunden vil kun være 75 % pr.
år. I andre brancher er omkostningen ved at erhverve kunder og den årlige indtjening
forventeligt kun det halve, til gengæld er sandsynligheden for at fastholde kunden hvert år
10%-point højere end i offshore branchen.

Opgave 2.4 (10%): Set over en 6-årig periode skal MacArtney så forsøge at skaffe nye
kunder i offshore branchen eller fra andre brancher? Du kan antage en kalkulationsrente på
8 %.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Opgave 3 (20%)

Med henvisning tilbage til din besvarelse i opgave 1 vedrørende MacArtneys setup skal du
diskutere fordele og ulemper ved MacArtneys strategi om organisk vækst.

Opgave 4 (25 %)

Macartney A/S overvejer at annoncere I flere international blade med det følgende tekst:
Vores specialiserede undervands teknologi designs har en stor bredde og de laves specielt
til dig – dine behov er i fokus – altid første klasses kvalitet i modsætning til disse firmaer
(og her nævnes deres konkurrenter ved navn). Vi er de bedste i verden !!

Opgave 4.1 (10%): Beskriv og analyser de juridiske problemer og overvej om

annonceteksten, der nævnes ovenover er i overensstemmelse med gældende ret

Macartney A/S sender noget af deres udstyr til en køber i Spanien, der hedder ‘’Submarine
III’’. Varerne placeres direkte på et stort lager i nærheden af ’’Submarine III’’ og efter 4
måneder skal fabrikken bruge udstyret i forbindelse med et job i Asien. Da de starter
udstyret stopper det pludseligt med at fungere og ’’Submarine III’’ ønsker derfor at
returenere udstyret og få kompensation for deres tab

Opgave 4.2 (10%): Hvilke juridiske råd vil du give lederen på ’’Submarine III’’

Macartney A/S har normalt som standard i deres kontrakter at en eventuel tvist/uenighed
skal afgøres af en domstol I København.

De har hørt at der måske er alternativer til en domstolsafgørelse, men de er usikre på disse
alternativer og hvad forskellen er på de forskellige muligheder

Opgave 4.3 (5%): Hvilke andre muligheder er der for at afgøre en tvist/uenighed og hvad er
forskellen på de forskellige muligheder?

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

(The following case is based on material extracted from www.macartney.com)

MacArtney solutions

The MacArtney Underwater Technology Group is a global supplier of underwater technology

specializing in design, manufacture, sales and service of a wide range of systems to
offshore operators, surveyors, the renewable energy sector, ocean sciences, security forces
and navies across the world.

Our customers’ projects vary enormously, as has our role. Sometimes our part has been a
small one in a much larger venture; sometimes it has been large, supplying most if not the
entire solution. At times is has been a role that no other underwater technology supplier
can fill. We emplace the challenges underwater and strive to help our customer to provide
solutions for an industry ranging from oil and gas, diving and defense to ocean science,
fishing and renewable energy. The underwater stories campaign highlights just some of the
many interesting projects that MacArtney is proud to have witnessed and been part of over
the last 3 decades.

Underwater technology covers a highly diverse market including offshore oil and gas
geophysical exploration, development and production, diverse military activities including
MCM, civil engineering, underwater security; ocean sciences, environmental studies and
research, nuclear plant inspection and leisure activities.

We offer a range of advanced and reliable systems from proven components, cables and
connectors, to state-of-the-art integrated packages, including fiber optic telemetry systems
and remotely operated towed vehicle systems. All the products we supply are designed and
tested to supply high quality, reliable performance in the challenging underwater
environment.

Our success is based on understanding our customers’ needs and expectations and using
our experience and expertise to provide reliable, advanced technology. Our proven systems
and components are backed by an international network of subsidiaries, providing local
access to global service.

MacArtney has been supplying products and engineering solutions for over 30 years and is
a privately owned corporation with group headquarters in Esbjerg on the west coast of
Denmark. From the head office in Denmark, they have been providing logistical, technical,
financial and marketing support to all of the companies within the group since 1978.

And they are doing well, really well, actually….

Background
The company was founded by former Royal Air Force-pilot Martin MacArtney – known as
Mac, as is today run by sons Marco and Glenn MacArtney and managing director Niels
Hedeager.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

The company employs approximately 300 people, 120 of them in headquarters, which is
still placed in Hjerting outside Esbjerg despite the fact that the majority of the company’s
advanced solutions within underwater technologies are used in seas around the globe.

The company has operations in Aberdeen (United Kingdom), Stavanger (Norway), Aix-En-
Provence (France), Rotterdam (The Netherlands), Kiel (Germany), Houston, Boston and San
Diego (United States), Victoria (Canada), Hamela (Bahrein), Perth (Australia) and
Singapore. Each independent company has been incorporated to meet the indigenous
requirements of the local area while being fully supported by the parent company,
MacArtney A/S which co-ordinates activities such as product development, system
integration, training, quality assurance, financial support and marketing. The global reach
of the MacArtney Group is further strengthened by an extensive network of dedicated
agents and representatives in major as well as upcoming markets for underwater
technology.

Organic growth
MacArtney has a fundamental value of organic growth. This has created a robust company
with an equity of close to DKK 170 million, a record turnover in 2013 of DKK 611 million
and a profit of DKK 61 million. The goal is to reach a turnover of 1 billion in 2016 and with
present growth rates of 20%, the company is well on its way.

Underwater Technology
MacArtney is a systems supplier and our state-of-the-art underwater technology equipment
and system solutions are capable of supporting any underwater project and marine
application, from deck to seabed. At every level in the supply of a MacArtney solution, from
the initial contact, during the design phase, the manufacturing process and the
commissioning - MacArtney clients are guaranteed to encounter a dedicated team of
skilled, experienced and highly trained engineers and technicians that bring years of
underwater technology expertise and know-how to the table.

The MacArtney Groups product and system supply ranges from industry leading connector,
cable and termination solutions via advanced fibre optic telemetry systems, sensors,
sonars, cameras and lights to the state of the art remotely operated towed vehicle (ROTV)
systems. In support of these and other sophisticated underwater systems, MacArtney
designs and supplies a full range of launch and recovery systems (LARS) including winches,
A-frames and complete vehicle and equipment handling solutions.

Common for all MacArtney system solutions is that they are designed according to the
requirements of, and often developed in collaboration with the end user. Moreover, all
systems are manufactured according to the DNV-ISO 9001-2000 quality assurance system,
documented and delivered as turnkey solutions including installation, testing and training.
As a key element of after sales service, MacArtney offers a dedicated service programme for
each system - including global 24/7 access to local service with global support.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

MacArtney products, systems and solutions

MacArtney takes pride in the ability to put together solutions that can effectively take on
any underwater challenge. MacArtney solutions are generally composed of elements from
the main categories below which are also supplied as standalone systems and products.

Winch and handling systems

The MacArtney winch and handling system portfolio includes the powerful and advanced
range of MERMAC winches and A-frames, dedicated to the safe and efficient deployment,
handling and recovery of remotely operated vehicles (ROV), sophisticated subsea
equipment and oceanographic applications. Moreover, MacArtney supplies the CORMAC
range of rugged, modular and compact stainless steel winches for the immaculate handling
of underwater equipment and instruments.

Connectivity
MacArtney is renowned for supplying the industry leading SubConn® wet mateable
connector range. Easily recognised by their characteristic red locking sleeves, SubConn®
connectors are used on all types of underwater systems and applications, from ROVs to
theme park rides. MacArtney also supplies a broad range of standard and custom cables
and umbilicals, terminations, mouldings and assemblies. What is more, MacArtney
manufactures and supplies a complete range of OptoLink fibre optic connectors and
MacAPI critical connectors for use in harsh subsea environments.

Telemetry
MacArtney designs, manufactures and supplies the NEXUS range of multiplexers and
underwater telemetry solutions, which are used extensively to facilitate the swift transfer of
data and signal between surface and seabed.

Remote Technology
MacArtney is recognised throughout the industry for its FOCUS-2, TRIAXUS and lately the
FLEXUS ROTV systems, which are deployed by surveyors, oceanographic operators and
institutes alike to effectively gather high quality data for various purposes.

Instruments
MacArtney supplies its own range of LUXUS underwater cameras, lights, controllers and
accessories to professional divers, ROV manufacturers and civil engineering contractors.
MacArtney also supplies and supports a broad range of acoustic equipment, position and
altitude sensors and oceanographic instruments from leading global manufacturers.

Rotary
MacArtney supplies the full range of Moog Focal rotary products including slip rings for
various underwater applications and complete swivel solutions for floating production,
storage and offloading (FPSO) vessels.

Commitment of safety, quality and credibility

MacArtney is certified according to ISO 9001:2008, DS / OHSAS 18001:2008 and holds
hold the highest possible (AAA) credit rating with Dun & Bradstreet (D&B).

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Industries

Oil and Gas

Since its foundation in 1978, the MacArtney Group has been supplying
underwater technology solutions to operators and developers within the oil
and gas industry. Decades of experience in providing products and systems
for even the toughest marine environments means that MacArtney is
familiar with the conditions and challenges faced offshore. This knowledge
enables us to offer expert advice and dependable solutions to industry
leading operators of subsea locations from our operations across the world.

Supplying the entire value chain

MacArtney takes pride in its ability to offer solutions that span the entire oil
and gas industry value chain and our products and systems hold several
useful applications within areas such as exploration, production and
decommissioning.

Several MacArtney standard products and systems make for an ideal

solution, when challenging installation and maintenance conditions call for
solutions to minimize valuable downtime.

Unique solutions for unique challenges

Beyond standard products and systems, several of the MacArtney solutions
delivered to the oil and gas industry comprise custom designed and
engineered systems - tailor made to accommodate advanced customer
specifications brought forward by the unique challenges faced offshore.

Ocean Science
For many years, the MacArtney Group has been recognized by our
customers and by the leading manufacturers of oceanographic instruments
and sensors as a systems integrator, supplying turnkey solutions to
operators and developers within the science community, environmental
authorities and companies providing monitoring and consultancy services
as well as research institutions.

MacArtney holds a strong background and track record within the

manufacturing and distribution of connectivity and infrastructure products.
MacArtney underwater connectors and cables, our diverse range of
underwater telemetry systems, winches and launch and recovery systems
(LARS) combined with our engineering competences, enable us to provide
tailor made systems to accommodate advanced customer specifications for
any particular project.

For more than 35 years, the MacArtney Group has been representing
leading manufacturers of underwater instruments and sensors either on a
worldwide basis or within the European marketplace.

Our competencies within underwater technology systems and instruments

are diverse and our product portfolio falls into 3 main categories including
'Acoustic equipment' - covering the full range of instruments based on
underwater acoustic technology, 'Oceanographic Instruments' - covering a
variety of the instruments for the ocean science community, environmental
monitoring authorities as well as hydrologic engineering and finally, our
own LUXUS range of underwater cameras, lights and media controllers.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Renewable Energy
The MacArtney Underwater Technology Group has been actively working with
offshore renewable energy projects for over a decade, supplying state-of-the-art
solutions to wave, tidal and offshore wind applications and projects across the
world.

The MacArtney portfolio of underwater technology systems and products has

proven itself an ideal basis for advising and supplying the rapidly growing renewable
energy sector. Many of our existing products are directly transferable to offshore
renewable energy applications, where our termination, rotary, infrastructure and
connectivity solutions offer reliability and a proven track record.

MacArtney’s skilled and experienced engineers also further develop and customize
products and conceive innovative solutions to suit specific projects and
advanced customer specifications. This way. MacArtney is able to tailor make
entirely new systems using the latest techniques and modelling software.

Advice can be crucial for finding the right solution

Our 35 years of experience has given us specialist knowledge that is essential for
providing effective engineering advice and project support for offshore renewable
energy technologies, solutions and products. Expert advice reduces lead-time and
ensures optimal pricing from the outset.

We know the value of time. Expert advice throughout the design stage coupled with
qualified and timely service and support helps to reduce lead-time, optimize pricing
and minimize downtime during service, maintenance and repair. Installed offshore
renewable energy systems are supported by MacArtney’s commitment to local
service and global support, empowered by our 24 hour engineering support service.

Civil Engineering
The discipline of civil engineering is extremely broad and is characterized by
ingenuity, innovation and close to boundless opportunities concerning the scope of
solutions and technologies applied.

Within this diverse industry, MacArtney is dedicated to provide underwater

technology products and solutions to a wide range and variety of projects, operators
and developers. MacArtney holds good track record of supporting customers to
design, build, refit and maintain structures, machines, devices and systems across
the world.

Worldwide technical support

At MacArtney, an experienced technical department ensures that projects and
solutions match customer expectations - both technically and economically. As an
important part of its civil engineering support portfolio, the MacArtney Group has in-
house access to capable and fully trained technical support teams. These provide
customers with project management and engineering assistance on several
disciplines including acoustics, robotics, electronics, hydrodynamics, hydraulics,
software, design and mechanics.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

MacArtney steps up presence in offshore Asia

Driven by a major strategic expansion of its operations in Singapore, the MacArtney Group
is significantly growing its presence and activities in all Asian markets for underwater
technology.
Over the next few months, MacArtney Singapore is securing several new staff members,
implementing a major expansion of stock and workshop facilities and opening a dedicated
slip ring repair and service center. What is more, the MacArtney Singapore operations will
be streamlined to provide direct local access to global MacArtney support for all Asian and
Asia Pacific markets.

MacArtney in Asia
With experienced and long standing MacArtney sales professional, Steen Frejo, at the helm
as Managing Director, the MacArtney Singapore area of operation has expanded to
encompass the entire Asian and Asia Pacific region including major markets such China,
Japan, South Korea, Taiwan and support for MacArtney’s Australia based office.

In addition, MacArtney Singapore will actively manage the coordination of the entire Asian
representative network. Empowered by local market expertise and access to clients, these
MacArtney representatives comprise an invaluable asset to the regional success of
MacArtney products and systems.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

With the expanded MacArtney

Singapore operations,
MacArtney is able work even
closer with its regional
representative network, which
will also benefit from direct
access to the Singapore based
stock of MacArtney and
SubConn® products.

Demand for local supply with

global support
To local offshore oil and gas,
marine renewable energy,
oceanographic and defense
industries, the expansion of
MacArtney Singapore will mean
shorter lead times and better
local service for underwater
technology systems and
products. Further adding to the
list of the advantages, direct
MacArtney technical support is
enabled through the limitation
of time zone differences - and
with local language proficient
sales and technical staff in
place at the Singapore office,
MacArtney clients and With Group operations in Singapore (regional HQ), Australia and
representatives alike will have representatives in Japan (Marimex Japan and Nishiyama Corporation),
China (SeaTech China), South Korea (GeoTech System Corp and
access to Asian as well as
Shinyang Technology) and Taiwan (Royalty Technology Instrument),
English language support. MacArtney is geared for catering to the need for underwater
technology solutions in the Asia Pacific region
"The expansion of MacArtney
Singapore will definitely bring
us much closer to our Asian
customers than what has been possible so far", says Steen Frejo and continues: "What
started as a one-man regional sale outpost has now become a fully-fledged MacArtney
location with local access to global support".

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

A good start
Since the official opening one year ago, MacArtney has received a warm welcome by all Asia
Pacific marine technology markets and segments. Spearheaded by a surging interest in
integrated MacArtney system solutions, this development is present across the entire
MacArtney portfolio. A good example is the Asia based demand for MacArtney winch and
handling solutions which has recently seen a MERMAC S winch system delivered to a
defense client in Taiwan, a powerful Active Heave Compensation MERMAC R winch ordered
by a Chinese scientific institute and a complete MERMAC research vessel winch solution
ordered by a Japanese oceanographic institute.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

MacArtney Singapore opens slip ring service facility

MacArtney is pleased to announce the opening of a dedicated slip ring service facility in
Singapore.

Operating out of a new and purpose designed in-house workshop equipped with the latest
tools and equipment, the new service facility is capable of performing complete
refurbishment, repair and maintenance of all
standard Moog Focal slip ring models.

All jobs at the MacArtney Singapore slip

Trained technicians and state of the art ring service facility are executed by fully
equipment trained and experienced technicians
All jobs at the MacArtney Singapore slip ring supported by the latest technology
service facility are executed by fully trained and
experienced technicians supported by the
latest technology - including inductive During its mere few weeks in operation,
soldering machinery and advanced test the MacArtney Singapore slip ring
equipment. Whether performing basic slip ring service facility has experienced a terrific
maintenance or a complete system overhaul, amount of interest in the services offered
MacArtney technicians work to ensure that
official manufacturer procedures and
instructions are meticulously followed.

One stop slip ring service for the Asia Pacific region
During its mere few weeks in operation, the MacArtney Singapore slip ring service facility
has experienced a terrific amount of interest in the services offered, and numerous orders
for complete slip ring refurbishment are already being processed.

While these initial orders originate from Singapore based Moog Focal slip ring users within
subsea, survey, ROV and seismic sectors, the new facility is expected to serve as a one stop
slip ring service hub for the entire Asia Pacific region. "This way, the new facility will
provide local and regional slip ring users with short lead time system service without the
constraints of time zone differences and complex logistics - and at the end of the day, this
will mean less system downtime" says MacArtney Singapore managing Director, Steen Frejo
and continues: "We have high expectations for the new facility which we will continuously
expand alongside our Asia Pacific operations in general."

Global slip ring expertise

While the new MacArtney slip ring service facility is certainly among the first of its kind in
the Asia Pacific region, MacArtney holds extensive experience, expertise and a profound
track record as a Moog Focal slip ring service provider with dedicated workshops already in
place at MacArtney Group operations in Denmark, Norway, the United Kingdom, USA,
France and the Netherlands.

Increased focus on the sea floor

Since the 1990’s, governments and action groups have been increasingly aware of the

Page/Side 15
 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

environmental effects of offshore oil drilling. Apart from the potential for leaks and spills,
the actual drilling process can have substantial effects on the area surrounding the drilling
site.

As drills are driven down into the seabed, material is pushed up out of the well. In the past,
this slurry waste was dumped on the seabed around the site. The mixture of mud, sands
and other sediments clouds the water, potentially choking life in the immediate area. It
then settles onto the sea floor where it can cover floor bound sea life and creatures too
slow moving to move out of the way.

Government action led to innovation

Governmental awareness and action led to national guidelines for waste control. They
stipulate that companies with drilling operations on the sea floor now must clean up after
themselves and leave the sea floor in the condition they found it. Some areas were also
designated off limits in order to protect the particularly sensitive or important
environments.

Such legislation and requirements to control waste prompted leading drilling support
company, AGR, to design and develop a sea bottom vacuum cleaner that would remove
mud and waste from the drilling point. In the mid 1990’s they designed a suction and
pump system that would vacuum the waste away from the seafloor and up to the drilling
platform where it could be processed.

Once they had developed their groundbreaking Riserless Mud Recovery system, or RMR,
they needed a launch and recovery system that could safely and reliably lower the system
to the boring hole on the sea floor.

Designing the right handling system

Together with MacArtney acting as offshore launch and recovery system experts, they
developed an integrated RMR system that could be launched from a drilling platform down
to the seafloor when needed. MacArtney designed a self-contained launch and recovery
system that included the winch, cable and A-frame. It was designed specifically for the task
and integrates the RMR into the self-contained design. The launch and recovery system
provides safe and effective handling of the suction module, the suction hose and the pump
module down to and up from the drilling site on the seabed. The entire system is built into
one unit that can be moved from one location to another as needed.

MacArtney Launch and recovery system including winch, cable and A-frame

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Successfully protecting the sea floor

The combination of inspired design and robust final system has given drilling operators an
effective method of complying with government anti-dumping regulations. The cleaner
drilling process has also opened up some areas for drilling that were otherwise off limits
due to environmental restrictions.

35 Riserless Mud Recovery systems with MacArtney’s offshore launch and recovery system
have been delivered since the system was launched onto the market almost 15 years ago.
Deployed from one drilling operation to another across the world, they have been helping
to preserve seabed life and conditions in countless locations in the seas and oceans of our
planet.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Cledirsa set to represent MacArtney in Uruguay and Paraguay

Cledirsa Ltda. (Montevideo, Uruguay) has put pen to paper on an exclusive agreement to
represent, market and sell MacArtney underwater technology products and systems in
Uruguay and Paraguay. As the ambition and global reach of the MacArtney Group continues
to expand, the agreement marks a strengthening of MacArtney’s strategic presence in
South America.

Cledirsa
Founded in 1997, Cledirsa launched operations by selling navigational electronics and
cartography to the regional shipping industry. With their existing product range spanning
advanced electronic sea maps, navigational software, hydrographic and acoustic
instruments from leading manufacturers - MacArtney’s extensive underwater technology
portfolio represents a natural extension of Cledirsas business area.

“The timing could not have been better” says Adriana Duarte Eggel, Commercial Director of
Cledirsa, and continues: “In all respects, Cledirsa was feeling ready for a new business
development challenge, and having just appointed a dedicated colleague responsible for
business expansion into new markets, the agreement with MacArtney represents a great
growth opportunity for our business. Undoubtedly, MacArtney solutions such as SubConn
connectors and marine winches will help solve the challenges faced by our clients. In
Uruguay and Paraguay, key MacArtney markets are likely to include dredging Global
solutions and local expertise

According to MacArtney Sales and Marketing Director, Marco MacArtney, the partnership
with Cledirsa is bound to be a rewarding venture for both companies: “MacArtney and
Cledirsa share a first mover mentality and understand the need to sell and support
products and systems locally - giving clients access to rapid response to enquiries and
mobilization of service. Coupled with an extensive network of good contacts within river
authorities, national port organization of ports and navies, this dedication to local presence
will be of key importance to the success of Cledirsa representing MacArtney products and
systems”.

Dedicated representation from day ’three’

Just three days after having signed the agreement with MacArtney, Cledirsa was in place at
the major ‘Navegistic’ maritime exhibition in Asuncion, Paraguay, to promote MacArtney
products and systems to potential local clients. To support Cledirsa’s efforts, MacArtney
overnighted a large marketing package with catalogues and product data sheets directly to
Cledirsa at the show site. “The show was a great success and several of our stand visitors
expressed great interest in our involvement with MacArtney”, says Adriana Duarte Eggel,
and civil engineering contractors, harbor authorities, navies and the tentatively blooming
regional oil and gas industry”.

Global solutions and local expertise

According to MacArtney Sales and Marketing Director, Marco MacArtney, the partnership
with Cledirsa is bound to be a rewarding venture for both companies: “MacArtney and
Cledirsa share a first mover mentality and understand the need to sell and support
products and systems locally - giving clients access to rapid response to enquiries and
mobilization of service. Coupled with an extensive network of good contacts within river
authorities, national port organization of ports and navies, this dedication to local presence
will be of key importance to the success of Cledirsa representing MacArtney products and
systems”.

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Dedicated representation from day ’three’

Just three days after having signed the agreement with MacArtney, Cledirsa was in place at
the major ‘Navegistic’ maritime exhibition in Asuncion, Paraguay, to promote MacArtney
products and systems to potential local clients. To support Cledirsa’s efforts, MacArtney
overnighted a large marketing package with catalogues and product data sheets directly to
Cledirsa at the show site. “The show was a great success and several of our stand visitors
expressed great interest in our involvement with MacArtney”, says Adriana Duarte Eggel

Page/Side 19
 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Appendix 1: Financial highlights in 1.000 DKK

2012/13 2011/12 2010/11 2009/10

Revenue 569.331 610.941 448.637 327.865

Gross profit 223.244 224.980 165.979 128.637

EBIT 40.867 65.992 36.234 19.850

Profit/loss for the year 27.438 42.732 21.432 11.912

Equity 166.940 154.277 115.025 99.772

Balance sheet total 310.043 353.482 269.245 202.411

Average number of staff 272 240

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 Bachelor of International Sales and Marketing
Professionsbachelor International Handel og Markedsføring

Appendix 2 MacArtney’s global presence

Europe North America
Denmark USA
MacArtney A/S (Headquarters) MacArtney Inc. - Gulf of Mexico
Tel: +45 7613 2000 Tel: +1 713 266 7575
info@macartney.com mac-us@macartney.com

Norway USA
MacArtney Norge AS MacArtney Inc. - Northeast
Tel: +47 5195 1800 Tel: +1 781 829 4440
mac-no@macartney.com mac-us@macartney.com

United Kingdom USA

MacArtney UK Ltd. MacArtney Inc. - West Coast
Tel: +44 (0) 1224 358 500 Tel: +1 858 674 6605
mac-uk@macartney.com mac-us@macartney.com

France Canada
MacArtney France S.A.S. MacArtney Inc. - Pacific Northwest
Tel: +33 (0) 442 394 985 Tel: +1 250 744 0550
mac-fr@macartney.com mac-us@macartney.com

The Netherlands
MacArtney Benelux BV
Tel: +31 10 2041166
mac-nl@macartney.com

Germany
MBT GmbH
Tel: +49 (0) 431 535500 70
mac-de@macartney.com

Middle East
Kingdom of Bahrain
MacArtney Middle East
Tel: + 973 39023234
mac-me@macartney.com

Asia
Singapore
MacArtney Singapore Pte. Ltd.
Tel: +65 65424500
mac-sg@macartney.com

Oceania
Australia and New Zealand
MacArtney Australia Pty Ltd
Tel: +61 (0) 862 58 5670
mac-au@macartney.com

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