The contribution of maintenance to the performance and economic value of your assets

1. The contribution of maintenance to the performance and economic value of your assets Presentation to European Plant Engineering Life Cycle Conference The Hague April 11th, 2005

2. Contents • Introduction to Stork Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions

3. Established in 1827 - World-wide presence today

4. Investors recognise Stork’s consistent performance Stork Share Price growing strongly Solid, profitable business Revenue $2,3bln Operating profit $150mln Employees 12500 Market capitalisation $1,2bln Net cash (debt) $142mln Major Locations Benelux, USA, Caribbean, Middle East EUR +180%

5. Stork comprises four core businesses – Technical Services the largest Technical Services Food Processing Aerospace Prints Other Revenue Emp. $1,011mln 6,300 $629mln 3,200 $259mln 1,500 $189mln 800 $229mln 700 $2,316mln 12,500 Data: 2004

6. We deliver a comprehensive range of value added services to our customers Program Management Integrated Services Contracts Technical Services Shutdowns, turnarounds, modifications, plant relocations Project Management Asset performance improvement, CMMS, RCM, consulting,change management Maintenance Management Power Services Steam and Gas turbine solutions Medium & High Voltage Services, Industrial automation Electrical & Instrumentation Conceptual design, FEED, Construction and Fabrication Engineering & Construction Integrity testing, Calibration, Rotating Equipment,, Safety, equipment rental Specialist Services

7. Leading customers across most industries – a strong track record in Oil & Gas • Energy and utilities • Other • Oil, Gas • Chemicals

8. Stork (GLT) manages long term upgrade of largest onshore gas production facilities in Europe Project Scope Project Description • Engineering and construction Maintenance “We are extremely satisfied with the performance and teamwork. All work is executed according to plan. It is worth noting that by now over 1000 man years work has been carried out without a lost time injury” Henk Niezen,NAM project manager 8 year Contract signed in 2002 - Value >EUR100mln/year Stork-NAM working relationship since 1996 Total investment in upgrades EUR1,95bln

9. Stork (AJS) currently managing the only cross- border Integrated Services Contract in the North Sea Project Scope Project Description • Engineering and construction Maintenance Services Projects Contract management of projects 7 year ISC - Value >EUR100mln/year ~ 50 offshore production locations &2 gas treatment centers Support facilities in UK and NL

10. Contents • Introduction to Stork Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions Trends & developments in maintenance

11. Trends & developments in maintenance • Global economics are forcing an increased emphasis on asset performance improvement • Lower cost and increased reliability/availability • Without compromising SHEQ • Reduced amount of investment in building new plants • Emphasis on performance of existing assets • EPC companies EPC Maintenance providers • Asset managers are seeking to apply proven concepts, best practices and new technologies • Looking for new innovative ways to improve Maintenance and improve cash flow • Owners are focussing on core competences and are making increased use of outsourcing and partnering with maintenance providers

12. Contents • Introduction to Stork • Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions Asset Performance improvement

13. CASH Asset Performance Do the Right Things - effectiveness - Do the Things Right - efficiency - @ The Right Price - (sub)contract costs - The Stork Way to Asset Performance Improvement Improve Cash Flow Relative Impact: High PROformerIntegrated Services Contract Reliability Centred Maintenance Workflow managementTurn-around management Subcontractor management Low

14. Improve Asset Performance Avalaible Time Production open Prod.closed Available time for production Other No Prod. Operational time Stand still Nett operational time Speed loss. OEE Effect. Operat. time Qual.Loss • Effective OEE are often as low as 50 – 60 % • Ice cream 75% 86%, Production Line (TPM) • Natural gas 94% 98,2%, Installation Availability • Bottling line 75% 85% Production Line • Pet food 75% 85% Prod. Line, Maint.Costs. -15% Increases of OEE with 10 – 20% can be achieved

15. technical departure reliability 24 hrs 97% down-time A-check 80% Increases in inspection intervals are based on analysis of inspecton findings, operational info and modifications 750 fh 8 hrs 100 fh example: Boeing 747 1972 2002 time The contribution of maintenanceto the asset performance and economic valueof the Boeing 747

16. PROformeranalyses asset performance across value chain

17. Contents • Introduction to Stork • Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions Asset Performance improvement

18. Production Inboundlogistics Outboundlogistics Invoer Produktie & & Uitvoer Verkoop Service Service Inkoop logistiek onderhoud logistiek Purchasing Sales Maintenance 01096039 - 0001 Structure organisation - Prepare job descriptions - Auditing of processes - Update organisation chart and staffing Organisation performance Structure organisation - Prepare job descriptions - Auditing of processes MM 1 - 31 MM 1 - 18 MM 1 - 16 - Update organisation chart and staffing Organisation performance - Communication internal - Prepare communication matrix - Management reports - Update consignation agreements - Change Board (unsolved conflicts) - Communication internal - Prepare communication matrix - Management reports - Update consignation agreements - Change Board (unsolved conflicts) - Communication Stork - Nam - Define organisation structure - Evaluate organisation Maintenance organisation - Competence philosophy - Communication Stork - Nam - Define organisation structure - Evaluate organisation Maintenance organisation - Competence philosophy - Communication Stork - third parties - Define consignment agreement - Evaluate structure - Communication Stork - third parties - Define consignment agreement - Evaluate structure - Consignment service - Consignment service - Supervision on site, housekeeping included - Supervision on site, housekeeping included - Meetings - Meetings Prepare workpackage MRP Planning of activities Evaluate work packages - Reports Prepare workpackage MRP MM 1 - 06 Planning of activities SGSP - 303 MM 1 - 05 MM 1 - 13 MM 1 - 07 Evaluate work packages - Reports - Check lists - Create PO plan (SAP) including clustering - Review task lists - Improve workpackage SGSP - 301 MM 1 - 15 - Check lists MM 1 - 10 MM 1 - 14 - Create PO plan (SAP) including clustering - Review task lists - Improve workpackage - Estimate costs Maintenance concept - Define Shutdown organisation - Notification research Maintenance process - Datahistorian MM 1 - 20 MM 1 - 30 SGSP - 301 - Estimate costs Maintenance concept - Define Shutdown organisation - Notification research Maintenance process - Datahistorian Þ Þ - Documents (vendor / design) RCM (FMEA) Dexter activity register - Determine shutdown package, EXOP’s & modifications included MM 1 - 21 MM 1 - 26 - Design Þ Þ - Documents (vendor / design) RCM (FMEA) Dexter activity register - Determine shutdown package, EXOP’s & modifications included - Design - Work permit System SGSP - 305 - Update MRP & MYP - Work permit System - Update MRP & MYP - Legal obligations - Define TRA’s Evaluate inspection - Define TRA’s - Legal obligations MM 1 - 11 MM 1 - 27 Evaluate inspection - NEN3140 Report - parts (purchase / spares) - Spares list - Integrity inspection MM 1 - 03 - parts (purchase / spares) MM 1 - 22 MM 1 - 29 - NEN3140 Report - Spares list - Integrity inspection - RBI Report - tools - Technical integrity report MM 1 - 24 Common - tools - RBI Report - Technical integrity report Common - IPF Report - personell - Keep archive up - to - date - personell - IPF Report - Keep archive up - to - date - QCP Common - Improve as built procedure - QCP Common MM 1 - 12 - Improve as built procedure - Equipment history - Keep safeguarding memorandum up - to - date - Equipment history New Operational Support (OPS) - Keep safeguarding memorandum up - to - date SGSP - 306 Operational Support (OPS) - Spare parts philosophy - Hand - over register / documents MM 1 - 03 - Spare parts philosophy - Hand - over register / documents - Definition and evaluation of improvements SGSP - 204 - Definition and evaluation of improvements Execute work package - Selection of spare parts - Manuals Execute work package SGSP - 302 Inspection - Selection of spare parts - Manuals - Controlling and maintaining ‘As Built’ drawings Inspection - Controlling and maintaining ‘As Built’ drawings - site access - site access - Close - out of inspection stops - Handling and controlling requests for design changes - Close - out of inspection stops - Handling and controlling requests for design changes - workpermit Inspection - workpermit Inspection - as built job order - Set - up Maintenance year plan / 5 - year plan - Inspection files control - as built job order MM 1 - 08 - Inspection files control - Set - up Maintenance year plan / 5 - year plan - ‘ Stookboek’ VISA - ‘ Stookboek’ VISA Reports update Reports update - Knowledge & function of inspection - Knowledge & function of inspection Common Common MM 1 - 25 Document control philosophy MM 0 - 03 Document control philosophy - Archiving documents / drawings / jobs - Archiving documents / drawings / jobs MM 1 - 19 - Document control philosophy MM 1 - 07 - Document control philosophy - Archiving jobs MM 1 - 28 - Archiving jobs - Define cluster data set MM 1 - 17 - Define cluster data set - As built documentation (on site) SGSP - 107 - As built documentation (on site) - Management system procedures - Management system procedures - As built drawings (on site) - As built drawings (on site) - Document / Certificate control, structure & accessability - Document / Certificate control, structure & accessability - Usage of applications - Usage of applications - Structuring archive - Structuring archive - Usage of commisioning check sheets - Usage of commisioning check sheets - Documentation Procedure / Workinstruction - Documentation Procedure / Workinstruction - Application management (Matrix, SAP, CDW, etc.) - Application management (Matrix, SAP, CDW, etc.) Inspection Inspection - Change Procedure / Workinstruction - Change Procedure / Workinstruction - Archiving documents / drawings / jobs - Archiving documents / drawings / jobs - Determine inspection stops - Determine inspection stops Documentation Documentation - Check documents on - site - Check documents on - site PROCES PLAN DO CHECK ADJUST Configuration management philosophy - Material management - Configuration management Configuration management philosophy MM 1 - 02 - Material management - Configuration management - Equipment history control (including legal obligations) - BOM (Bill Of Material) - Identification of critical equipment - Equipment history control (including legal obligations) - BOM (Bill Of Material) - Identification of critical equipment MM 1 - 03 - Asset management / information - Certificering tools & service equipment - Update Asset information - Asset management / information - Certificering tools & service equipment - Update Asset information - Equipment data in SAP - Asset / Tag information - Equipment data in SAP - Asset / Tag information - Assignment of equipment to partners - Equipment record cards - Assignment of equipment to partners - Equipment record cards - List NAM equipment / materials / tools - List NAM equipment / materials / tools - Control on site of tools & service equipment certification - Control on site of tools & service equipment certification - Toolbox meeting - Define VGWM plan Evaluate QC documentation Update PGVP plan Management system - Define VGWM plan - Toolbox meeting Management system Evaluate QC documentation Update PGVP plan Quality, Health, Safety, - SMAT rounds - Define Toolbox / WVO planning - QCP Equipment inspection files - Update schema Toolbox / WVO - Procedures / Workinstructions Quality, Health, Safety, - Define Toolbox / WVO planning - SMAT rounds - Procedures / Workinstructions - QCP Equipment inspection files - Update schema Toolbox / WVO - WVO meeting - Workinstructions QC - Prepare annual inspection file - Review of chemicals on site - Workinstructions QC - WVO meeting Environment and Well - being - Prepare annual inspection file - Review of chemicals on site Environment and Well - being - Review QCP’s - QC plans - Review QCP’s - QC plans (PGVP) - Review QC documents (PGVP) PGVP - Review QC documents PGVP Evaluate PGVP - PGVP Management system Evaluate PGVP Update inspection assurance system - PGVP Management system Update inspection assurance system - Control of waste disposure - VCA certificering - Control of waste disposure - VCA certificering - Control of chemicals on site - Procedure / Workinstruction Chemicals on site - Control of chemicals on site - Procedure / Workinstruction Chemicals on site - Entrance procedures - Procedure / Workinstruction waste disposure - Entrance procedures - Procedure / Workinstruction waste disposure Update Management systems - Job descriptions Update Management systems - Job descriptions - Meeting schedule - Meeting schedule - Auditing of processes - Auditing of processes Inspection assurance system Inspection assurance system - NAM ‘inspectie zorgsysteem’ requirements - NAM ‘inspectie zorgsysteem’ requirements IM/IT philosophy w.r.t. maintenance - Set up IM/IT plan w.r.t. maintenance - Support of applications / programs office Evaluate IM/IT tools & systems - Update IM/IT plan w.r.t. maintenance IM/IT philosophy w.r.t. maintenance - Set up IM/IT plan w.r.t. maintenance - Support of applications / programs office - Update IM/IT plan w.r.t. maintenance Evaluate IM/IT tools & systems Information - IM/IT plan - Working practices Maintenance w.r.t. applications & program Information - Support of applications / programs on site - IM/IT plan - Working practices Maintenance w.r.t. applications & program - Support of applications / programs on site - Back - up philosophy - Back - up management - Make Back - up’s Management & Technology - Back - up philosophy - Back - up management - Make Back - up’s Management & Technology - Analyse process data - Analyse process data - Define / update CBM requirements (IM/IT) (IM/IT) - Define / update CBM requirements - Report on technical performance - Report on technical performance Condition Based Maintenance (CBM) Condition Based Maintenance (CBM) - Maintenance Monitoring Centre (MMC) - Maintenance Monitoring Centre (MMC) - Define systems & requirements - Define systems & requirements Procure / acquire / store spares & materials - Stock material plan Evaluate CP&L suppliers performance CP&L philosophy - Update CP&L plan Procure / acquire / store spares & materials SGSP - 508 SGSP - 509 - Stock material plan Evaluate CP&L suppliers performance CP&L philosophy - Update CP&L plan Contracting, Procurement - Use NAM contracts - Spares management - Turnover rate Contracting, Procurement - Define CP&L plan - Update service agreements - Use NAM contracts - Spares management - Turnover rate - Define CP&L plan - Update service agreements - Finalize Contracts services / material - Determine material criticality - Delivery time - Procedure / Workinstruction material / ordering of services - Update warehousing plan - Finalize Contracts services / material and Logistics - Determine material criticality - Delivery time - Procedure / Workinstruction material / ordering of services - Update warehousing plan and Logistics - Materials standards / traceability - Material management - Reliability - Materials standards / traceability - Material management - Reliability (CP&L) - Warehousing of material - Subcontract qualification plan - Accessability (CP&L) - Warehousing of material - Subcontract qualification plan - Accessability - Warehousing plan - Controllability - Warehousing plan - Controllability - Transport plan - Transport plan - Lump Sum prizes - Costs & time registration in SAP Finance Philosophy - Update RFM 01 till RFM 10 SGSP - 521 SGSP - 522 Evaluate Finance philosophy - Lump Sum prizes - Costs & time registration in SAP Finance Philosophy - Update RFM 01 till RFM 10 Evaluate Finance philosophy - CBA estimates & unit rates - Auditable system - Handling of invoices - Update requirements w.r.t. cost control - Contract reports - CBA estimates & unit rates - Auditable system - Handling of invoices - Update requirements w.r.t. cost control - Contract reports - MEB - CBA final - OPS support budget - Performance Incentives (IF1 t/m IF4) Finance & cost control - MEB - CBA final - OPS support budget - Performance Incentives (IF1 t/m IF4) Finance & cost control - Budget RFM - 01 t/m RFM - 10 - As built workpackages - Budgets RFM 01 till RFM 10 - Budget RFM - 01 t/m RFM - 10 - As built workpackages - Budgets RFM 01 till RFM 10 - Make plan for costs registration - Budget Management & Cost Control - Make plan for costs registration - Budget Management & Cost Control - Budget 2003 - 2007 - Monthly reports - Budget 2003 - 2007 - Monthly reports Blueprint for maintenance processes: the essentials for a best in class maintenance strategy and organisation Value chain Quality model(EFQM) Organisation & Processes (SM3)

19. Gate-keeper FMEA Planning task 1 task 2 task 3 task 4 task 5 Description CMMS Reliability Centred Maintenance (continuous development) - objectcode Workflow management - discipline - interval Work-instructions Organising the Maintenance Process Maintenance Delivery Break– down

20. The maintenance scan:a structured approach to establish the potential for asset improvement • Areas of Improvement Potential • Reliability • More revenue from production due to less and shorter breakdowns • Availability • More revenue from production due to less and shorter shut-downs • Costs • Effective; meet target • Efficient; less resources, less waste • Quality; less re-work • Risks • HSE • Assets and customer performance • Image

21. PLAN DO CHECK ADJUST Maintenance strategy 55% 40% 46% 63% 1 Asset managment 74% 54% 46% 77% 2 Maintenance program / RCM 48% 70% 11% 0% 3 Workflow management 40% 53% 29% 13% 4 1st line maintenance 13% 30% 0% 5 Shutdown 64% 71% 38% 3% 6 Materials management 70% 87% 40% 75% 7 Facility management 95% 97% 100% 100% 8 Subcontracting 47% 64% 75% 68% 9 Human resource management 45% 58% 0% 10 Master data 22% 20% 11 SHEQ 93% 91% 90% 87% 12 Financial 50% 76% 50% 0% 13 Maintenance scan results will be linkedto theSM³ modelfor rapid prioritisation

22. MMS = Maintenance Management System • Andere gangbare afkortingen: OBS;OIS;CMMS;EAM • Actie • Omschrijving van de activiteit(-en) om de storing te verhelpen/herstellen • Afdeling • Zelfstandig opererende unit binnen een bedrijf met financiele verantwoordelijkheid • Voorbeelden: TD, Produktie, logistiek, etc • Voorwaarde: elke afdeling heeft minimaal een Kostenplaats • Discipline • Onderverdeling personeel a.h.v. technische discipline • Op discipline niveau worden verrekeningstarieven PROCESSES DEFINITIONS ORGANISATION QUALITY COST STRUCTURE CODES People People Management Satisfaction USER GUIDES Policy & Strategy Customer Business Leadership Processes PLANNING BUDGET Satisfaction Results REPORTING Impact on Resources Society Maintenance Templates

23. Performance Monitoring Standard Management Reports Modules • Maintenance • Accounting • Purchasing • Warehouse • Labor

24. Contents • Introduction to Stork • Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions Asset Performance improvement

25. How do we get the organisations of the customer and the service provider work jointly towards asset performance improvement? B A • Value creation • Promotion of best practices • Sharing of common processes • Integrated team • Planning integration • Optimisation and management of supply chain • HSE performance • Cost reductions • Them – us culture • Double work • Misaligned interests and objectives • Managing the KPI’s instead ofthe business • No attention given to transition/ change management • Customer dissatisfaction ?

26. ISC objective is delivery excellence and realisation of continuous improvement Transition Transformation Delivery Excellence B • Get the basics right first • Manage Integrity & Safety • No Compromises • Maturity of relationship • Value Generation • Perfect Delivery Joint Review & Improve Loop Innovation • Businessas Usual A Shorten Steepen Extend • Time

27. Technical Service Manager Supply Chain Manager SHEQ Manager Business Performance Manager Individual Capital Project Managers ISC Capital Projects Manager Integrated team:focus on delivery and continuous improvement ISC Project Director UK Delivery Manager HR Manager Finance Manager NL Delivery Manager Asset West Delivery T/Leader AssetSouth Delivery T/Leader Asset Central Delivery T/Leader Asset North Delivery T/Leader Delivery Engineers Delivery Engineers KPI’s Scorecards Business Reporting Performance Measurement and Improvement Contractual Alignment Commercial T/Leader Bus Performance Cost Planning T/Leader Cost/Planning Business Planning Cost Management and Information Operational Planning Progress Reporting & AFC’s Modifications Maintenance Operational Support Modifications Maintenance Operational Support Modifications Maintenance Operational Support Modifications Maintenance Operational Support IM / IT IM/IT T/Leader Information and Knowledge Management Document Management Systems Alignment and Development SHEQ Safety Management and Guidance Quality System Management Occupational Health Control SHEQ Improvement Co-ordination Supply Chain NL & UK Capital Projects Operational Procurement Sub-contracts management and improvement Materials management Logistics Interface Maintenance Engineering Maintenance Strategy and Challenge Best Practice Conduit Analyse and Improve Maintenance Maintenance Manager Engineering Process and Procedural Management Resource management Specialist Skills Pool Management Technology Enhancement and Challenge Engineering T/Leader Asset Central delivery teams Asset South delivery teams Asset North delivery teams Asset West delivery teams Construction Construction T/Leader Process and Procedural Management CAT Team Leadership and Development Modifications Implementation Scaffolding Painting Insulation Architectural Fabric Services Fabric Services Close Out T/Leader Close Out Close Out - Modifications - Maintenance Input - SAP Updates - Punch-lists

28. Contents • Introduction to Stork • Trends & developments in maintenance Asset Performance Improvement • Overview • “Best in class” maintenance • Integrated Services Contract Conclusions

29. Conclusions • Global economics are forcing an increased emphasis on performance improvement of existing assets • Best in class maintenance significantly contributes to better business results • Asset performance improvement • Reduction of maintence costs • Partnership i.e. Integrated Service Contracts provide a sound basis for achieving asset performance improvement

30. Thank You !