NRX Overview. SAP IVN Day, Newtown Square. March 22, 2007

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1 NRX Overview SAP IVN Day, Newtown Square March 22, 2007

2 NRX Thought leaders in asset information management Our Mission Asset Lifecycle Interoperability and Operational Excellence Our Solutions VIP on SAP pricelist Asset Hub (aka Asset Center) We Serve Process Industries Discrete Manufacturing Service Industries Defense & Security Public Sector SAP AG

3 Chronology of the SAP/NRX Partnership SAP Certified Software Partner (2001) Cooperation Agreement (2002) (NRX transfers IP to SAP OCI code for R/3 4.7) SAP xapp Development Partner (2003) SAP America Reseller Agreement for NRX VIP (2004) SAP Manufacturing Shop Floor Partner (2005) SAP VIP by NRX on SAP America Price List (Dec 2005) NRX Asset Hub is Powered by NetWeaver certified (June 2006) Member of SAP IVNs for Oil & Gas, Chemicals, and Mill Products SAP AG

4 Key Stakeholder Objectives VP, Ops Maximize Return On Assets (ROA). Plant Manager Achieve operational excellence to increase asset reliability and availability. Shop-Floor IT/CIO Maximize efficiency & effectiveness to keep assets sweating. Maximize ROI by leveraging existing IT investments and lower TCO. SAP AG

5 The Perfect Plant - Aligns roles, measures and goals within and across manufacturing improving efficiencies and value Measures Focus Goal VP Operations Return on Assets Across Plants Profitability Business Measures Focus Goal Plant Managers Manufacturing Costs Within Plant and Across Processes Operational Excellence Plant Role Role Maintenance Manager Production Manager Planner / Scheduler Measures Asset Availability Yield Changeovers Efficiency Cycle Times Compliance to Plan Focus Within Assets Manufacturing Process Within Supply Chain Goal Reliable Assets Optimized Manufacturing Processes Efficient Fulfillment Perfect Plant provides a cohesive solution to address the need for complete alignment and efficient execution from shop floor to top floor SAP AG

6 VIP Bringing Together People & Processes Solves the user acceptance issue by employing role-based, simplified functionality Extends SAP PM to streamline work processes. Unifies critical functions and information into one workspace Integration of other xapps such as xmii to provide a holistic maintenance solution Portal-based solution with over 50 iviews provides speed-tovalue SAP AG

7 Asset Hub Build & Sustain Your Asset Information Foundation Solves the engineering & construction handover challenge for new plants and assets Solves the challenge of creating, enhancing, and sustaining the asset information foundation for legacy plants and assets Pre-Feed and Feed Detailed Engineering Procurement Construction Commissioning Operations Maintenance Reliability Workforce Mgt EH&S Supply Chain P a r t n e r a n d S u p p l i e r C o l l a b o r a t i o n Design Basis Maintenance Basis Reliability Basis Projects delivered better, faster, cheaper Improves maintenance, and MRO supply chain processes Drives asset performance, reliability & continuous improvement SAP AG

8 Perfect Plant Landscape 360 View Of Your Operations (xmii, VIP, Asset Hub) Together, Asset and Production Data provide a comprehensive solution that includes asset connectivity, performance monitoring and maintenance execution extending the value of SAP EAM. SAP Enterprise Portal Aggregation of information for execution of common EAM transactions from a single, role-based workspace. Integration of key information such as BOMS, maintenance work orders, materials, and technical content significantly improves decision support and Operate & Maintain work process execution. Performance and provides intelligence over the performance data. Monitoring of asset performance trends and trigger alerts in SAP EAM such as a Maintenance Notification or dashboard before bad product is produced. xmii provides integration with and visualization of key performance data from plant level systems that can then be viewed in VIP. Manufacturing Operations Users Production Intelligence Production Integration Operations, Maintenance, Reliability, Procurement Users SAP EAM Optimize plant assets and related programs by establishing & sustaining a complete and accurate data foundation across the enterprise and the assets lifecycle. EAM Maintenance & Material Planners Asset Hub Disparate plant level systems SAP ERP SAP MDM Perfect Plant SAP AG Engineering Design OEM Design Document Management

9 SAP AG

10 NRX Customers SAP AG

11 Financial Justification for the NRX Solution Sample Customer ROIs Oil & Gas Customer Init. Yr Savings $1.76MM Payback 13.7 mths Utility Customer Init. Yr Savings $.759MM Payback 9.4 mths Utility Customer Init. Yr Savings $1.05MM Payback 6.9 mths SAP AG

12 Thank-you for your attention. Please visit us at the NRX booth for further information about NRX and the Perfect Plant. SAP AG

13 ADDITIONAL SLIDES/APPENDIX SAP AG

14 A Complete Solution For Asset Information Management SAP AG

15 Innovating Asset Management Going beyond SAP EAM. Going beyond transactions. SAP AG

16 Key Opportunities Areas in Manufacturing Key Strategic Goals Improve Cost Structure Increase Operations Efficiency Manage Asset Performance Drive Compliance Key Areas of Opportunity 1. Raw Materials 2. Energy 3. Maintenance Materials & Labor 4. Mfg Planning 5. Mfg Execution 6. Asset Availability & Efficiency 7. Compliance 8. Quality Key Value Drivers Manage raw material variability in line with customer expectations Increased visibility results in right material right place right time Reduce spend on expedited production, labor and freight costs Reduce wasted energy in mechanical and electrical systems Reduce energy loss due to improper PM frequencies in air / steam systems Maximize use of all available energy throughout plant Reduced maintenance labor cost from improved scheduling and execution Enhanced knowledge management, skills sharing and training effectiveness Reduced MRO inventory levels and increased turns, supplier performance Increased customer satisfaction & retention due to accurate order delivery dates Decreased inventory and higher asset utilization due to optimal planning Enhanced ability to sense and respond to schedule and order changes Enhanced process visibility supports early detection of potential issues Increased efficiency from optimal allocation and tracking of labor and resources Detect & resolve manufacturing exceptions minimizing rework & overtime Increase asset uptime through improved maintenance planning and scheduling Improved design and life cycle management of the assets Increased effectiveness of preventive and predictive maintenance techniques Reduced number of EH&S incidents and associated costs Lower overall regulatory compliance costs with increased labor productivity Enhanced management of hazardous goods, disposal, waste & emissions Decreased variability increases product quality and customer satisfaction Proactive problem & variance detection and management of quality issues Enhanced quality compliance supporting continuous quality improvement SAP AG

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