Képpel FELS Brasil S.A.

1. Képpel FELS Brasil S.A. Management Presentation: J.D.Edwards System Presenter: Richard L Berry and Paulo de Tarso Rocha Coelho Jr.

2. Agenda • System Overview 10 mins • Project Costing Overview 20 mins • Purchasing Process 20 mins • Stores Processes 20 mins • Payment Process 10 mins • Conclusion 10 mins

3. J.D.Edwards Overview • The J.D.Edwards software is now ‘live’ • Apart from JDE, the KFELS 6 digit Cost Code scheme, and a new standardised Inventory Item Number have also been implemented • There are many changes of procedure that affect daily operations: • Costing • Purchasing • Integration • Fiscal • Payment

4. J.D.Edwards System Overview • Costing • Procurement • Inventory Management • Payments • Billing and Receipts • General Ledger • Fiscal • Fixed Assets

5. Purchasing Fiscal Accounts Payable Consumable Application Inventory Project Ledger Address Book Issue General Ledger Fixed Assets Accounts Receivable J.D.Edwards: Integration

6. Job Cost: Integration • Purchasing • Commitments (as soon as PO or subcontract is entered) • Receiving (immediately updates cost) • Cost is charged to the Job, quantity updates inventory • Inventory • Inventory Issues and Returns of consumable materials • Fiscal • Taxes charged to the Job • Fixed Assets • Assets may be bought for a project • Accounts Receivable • Accounts Payable • General Ledger

7. Job Cost • Cost Types • Labour • Material • Subcontract • Other • Cost Code 6 – digit has been implemented • Labour Costing interfaced from RM Labore, and hours from SAMO.

8. Job Status Inquiry: Cost Code Level 9

9. Job Status Inquiry: Cost Code Level 6

10. Job Status Inquiry: Cost Code Level 4

11. Job Status Inquiry: Cost Type Level 7

12. Job Status Inquiry: Cost Type Level 4

13. J.D.Edwards System Overview:Procurement Management • Purchasing Types: • OI Consumable Inventory • OD Direct Application • OS Subcontract • OF Fixed Assets • Process Changes: • All PO are in JDE • Costing must be entered into the PO • Tax information must be correct in the PO • Benefits • Integration • Consolidated view of purchases • Delivery statistics

14. Procurement Process: Consumable Stores Requisition Requisition and Tabulation outside JDE Purchase Order Enter, print and approve Receive Stores receive, update stock, create Nota Fiscal information Fiscal Verify tax information Accounts Payable Update due date, print espelho Treasury Pay

15. Procurement Process: Application Stock Requisition Requisition and Tabulation outside JDE Purchase Order Enter, print and approve Receive Stores receive, update project costs, update project warehouse, create Nota Fiscal information Fiscal Verify tax information Accounts Payable Update due date, print espelho Treasury Pay

16. Procurement Process: Services Requisition Requisition and Tabulation outside JDE Purchase Order Enter, print and approve Receive Accounts Payable Department ‘receive’, update project costs, create Nota Fiscal information Accounts Payable Update Accounts Payable Calculate ISS/INSS Fiscal Department calculate ISS and INSS withholding taxes Accounts Payable Print Espelho Treasury Pay

17. Procurement Process: Fixed Assets Requisition Requisition and Tabulation outside JDE Purchase Order Enter, print and approve Receive Stores receive, update accounts, create Nota Fiscal information Fiscal Verify tax information Accounts Payable Update due date, print espelho Treasury Pay Fixed Assets Update Fixed Assets Ledger

18. Procurement Management • Procurement History by: • Type of Purchase: Application or Consumable • Project • Supplier • Item • Cost Code • Requisition Number • Dates • Expediting • Promised delivery date revision • Expediting report • Outstanding Order List • Late Delivery

19. Purchase Order History Inquiry

20. Purchase Order Expediting

21. J.D.Edwards System Overview:Inventory Management • Consumable Stores Niterói and Angra • Application Stores Niterói and Angra • FSTP material bought for KFB • Locations have not yet been defined • New structured item number 99.99.99.99999

22. Disponibilidade

23. Disponibilidade

24. J.D.Edwards System Overview:Inventory Management Processes • Receiving: • Application Material • Consumable Material • Overhead Material • Ativo Fixo • Transferencia • Remessa • Devolução • Emissão & Retorno • Physical Count

25. J.D.Edwards System Overview:Payments • Majority of payments now done electronically through Banco Itaú

26. Payment Process Stores Request a Nota Fiscal Print Nota Fiscal Receive Nota Fiscal Calculate ISS and INSS Print Espelho Approve Create Payments Transmit Payment File Receive Notification of Successful Payment Issue Material Credit Note Treasury Treasury Treasury

27. J.D.Edwards System Overview:Financial • Contabilidade Geral • Contas a Pagar • Contas a Receber • Fiscal • Ativo Fixo

28. Contabilidade Geral • Both companies in one environment: • Képpel FELS Brasil (company 00001) • BrasFELS (company 00002) • Yards and Offices: • F7001 Matriz • F7002 Niterói • F7003 Macaé • F7004 Angra • F7005 Képpel FELS Brasil (Angra)

29. Contabilidade Geral Format of accounts in JDE

30. Fiscal • Notas Fiscais Entrada captured when materials or services are ‘received’ • Notas Fiscais Saida for: • Transferencia • Remessa • Devolução • Sales • ICMS and IPI calculated • ISS and INSS calculated • PIS/COFINS/CSLL and IR calculated at the point of payment

31. Fiscal • Livros Fiscais printed from JDE • Sintegra generated from JDE • Payment instruments DARF, DARJ printed by Banco Itaú

32. Ativo Fixo • Combined asset register of all assets • Normal daily operations within JDE: • Additions • Transfers • Disposal • Depreciation

33. Thank you