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

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NRX OverviewSAP IVN Day, Newtown Square

March 22, 2007

© SAP AG 2006 2

NRXThought leaders in asset information management

Our MissionAsset Lifecycle Interoperability and Operational Excellence

Our SolutionsVIP – on SAP pricelistAsset Hub (aka Asset Center)

We ServeProcess IndustriesDiscrete ManufacturingService IndustriesDefense & SecurityPublic Sector

© SAP AG 2006 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

3

© SAP AG 2006 4

Key Stakeholder Objectives

Shop-Floor

IT/CIO

VP, Ops

Plant Manager

Maximize Return On Assets (ROA).

Achieve operational excellence to increase assetreliability and availability.

Maximize efficiency & effectiveness to keep assetssweating.

Maximize ROI by leveraging existing IT investmentsand lower TCO.

© SAP AG 2006 5

The Perfect Plant - Aligns roles, measures and goals within and across manufacturing improving efficiencies and value

VP Operations

Plant Managers

Production Manager

Maintenance Manager

Yield

Cycle Times

Manufacturing Process

Optimized Manufacturing

Processes

Changeovers

Compliance to Plan

Within Supply Chain

Efficient Fulfillment

Asset Availability

Efficiency

Within Assets

Reliable Assets

Manufacturing Costs

Within Plant and Across Processes

Operational Excellence

Return on Assets

Across Plants

Profitability

RoleRoleMeasures

Focus

Goal

Perfect Plant provides a cohesive solution to address the need for complete alignment and efficient execution from shop floor to top floor

Measures

Focus

Goal

Measures

Focus

Goal

Business

Plant

Planner / Scheduler

© SAP AG 2006 6

VIP – Bringing Together People & Processes

Solves the “user acceptance”issue by employing role-based, simplifiedfunctionality

Extends SAP PM to streamline work processes.

Unifies critical functions and information intoone workspace

Integration of other xapps such as xMII to provide a holisticmaintenance solution

Portal-based solution with over 50 iViewsprovides speed-to-value

© SAP AG 2006 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-Feedand Feed ProcurementDetailed

Engineering Construction Commissioning Operations Maintenance SupplyChainReliability EH&SWorkforce

Mgt

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 BasisProjects delivered better, faster, cheaper

Improves maintenance, and MRO supply chain processes

Drives asset performance, reliability & continuous improvement

© SAP AG 2006 8

Perfect Plant Landscape – 360 View Of Your Operations (xMII, VIP, Asset Hub)

SAP ERP

Manufacturing Operations

Users

Production Integration SAP EAM

Operations,Maintenance,

Reliability,Procurement

Users

SAP Enterprise Portal

Disparate plant level systems

Production Intelligence

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.

Together, Asset and Production Data provide a comprehensive solution that includes asset connectivity, performance monitoring and maintenance execution extending the value of SAP EAM.

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.

PerfectPlant

EAMMaintenance

&Material

Planners

Optimize plant assets and related programs by establishing & sustaining a complete and accurate data foundation across the enterprise and the assets’lifecycle.

EngineeringDesign

Asset Hub

SAPMDM

OEMDesign

DocumentManagement

© SAP AG 2006 9

© SAP AG 2006 10

NRX Customers…

© SAP AG 2006 11

Financial Justification for the NRX Solution

Sample Customer ROIs

Oil & Gas Customer Init. Yr Savings $1.76MM Payback 13.7 mthsUtility Customer Init. Yr Savings $.759MM Payback 9.4 mthsUtility Customer Init. Yr Savings $1.05MM Payback 6.9 mths

© SAP AG 2006 12

Thank-you for your attention.

Please visit us at the NRX booth for further informationabout NRX and the Perfect Plant.

© SAP AG 2006 13

ADDITIONAL SLIDES/APPENDIX

© SAP AG 2006 14

A Complete Solution For Asset Information Management

© SAP AG 2006 15

Innovating Asset Management

Going beyond SAP EAM.Going beyond SAP EAM.Going beyond transactions.Going beyond transactions.

© SAP AG 2006 16

Key Opportunities Areas in Manufacturing

2. Energy

4. Mfg Planning

6. Asset Availability& Efficiency

1. Raw Materials

Reduce wasted energy in mechanical and electrical systemsReduce energy loss due to improper PM frequencies in air / steam systemsMaximize use of all available energy throughout plant

Increase asset uptime through improved maintenance planning and scheduling Improved design and life cycle management of the assetsIncreased effectiveness of preventive and predictive maintenance techniques

Manage raw material variability in line with customer expectationsIncreased visibility results in right material – right place – right time Reduce spend on expedited production, labor and freight costs

Key Value Drivers

Improve Cost Structure

8. Quality

Manage Asset Performance

Drive Compliance Decreased variability increases product quality and customer satisfaction

Proactive problem & variance detection and management of quality issuesEnhanced quality compliance supporting continuous quality improvement

Key Strategic Goals

Key Areas of Opportunity

7. ComplianceReduced number of EH&S incidents and associated costsLower overall regulatory compliance costs with increased labor productivityEnhanced management of hazardous goods, disposal, waste & emissions

Increase Operations Efficiency

3. MaintenanceMaterials & Labor

Reduced maintenance labor cost from improved scheduling and executionEnhanced knowledge management, skills sharing and training effectivenessReduced MRO inventory levels and increased turns, supplier performance

Enhanced process visibility supports early detection of potential issuesIncreased efficiency from optimal allocation and tracking of labor and resourcesDetect & resolve manufacturing exceptions minimizing rework & overtime

5. Mfg Execution

Increased customer satisfaction & retention due to accurate order delivery dates Decreased inventory and higher asset utilization due to optimal planningEnhanced ability to sense and respond to schedule and order changes