Presentation of the “ND” Group Corporation “Philosophy of the ND-OFFICE use in the filling station” Kiev, 2009

Operational control and analytics by means of the ND-OFFICE Presentation Plan 1. Standard functions description in the work of the fuel company. 2. Software and Hardware assistance based on the ND-OFFICE in organization of procedures performance and monitoring. 3.Practical use of the Software and Hardware in realization of control and monitoring function in the filling station 4.Why are the Software and Hardware from the ND. 5.Analysis of the ND-OFFICE use effect. 2

Operational control and analytics by means of the ND-OFFICE Introduction:) - our view on the possibility of the software use in the filling station can be different from the customer’s view, and is also our view on the processes, taken place in the filling station, we are speaking about base concepts; - this is a report about the control over the company management system with the help of the device; - this is an instruction as to the result of the proper use of the device; - we are speaking about the firm management philosophy with the help of the device – about the strategic moments; - the device revision performance specification – this is the result of the device examination of the correspondence to the given technical description (the first) and the correspondence to the business-projects view of the company itself (the second). The second without the first is extremely complicated. - revision purposes – removal of the identified disadvantages, bringing of the device to the convenient practical form – these are tactical moments. 3

Operational control and analytics by means of the ND-OFFICE Part 1: Standard functions description in the work of the fuel company (the company in its operational activity must perform a set of functions): 1.1 Functions are divided to the main (business-functions) and auxiliary (service-functions); 1.2 The main – are functions, connected with the movement of goods, fuel, financial resources by acquisition, processing and analysis of the information, analytics; auxiliary – are functions, connected with the providing of the object business-functions performance: public services, overall providing, security, training, etc.; 1.3 The ND-OFFICE deals with the main functions; 1.4 Procedure – is the mechanism for the realization of functions, i.е. The set of actions (business-process), directed to the realization of functions. (Example: fuel reception – driver, cashier, shift supervisor, etc. are involved in – all use their own procedures); 4

Operational control and analytics by means of the ND-OFFICE 1.5 List of the main standard functions for the typical filling station: income, expenditure, return, write-off; stock-taking; price formation; loyalty, discount system; accounting, analysis, i.e. functions, maintained in the company and somebody deals with them and is responsible for the result. 1.6 Practically functions are performed by employees (individuals) with their own distinctive faults: - low operational efficiency of acquisition, processing, analysis and transmission of the information; - introduction of faults to the information (unintended or intended). 1.7 The introduction purpose of the Software and Hardware: the obtaining of known accurate and prompt information, necessary for the company management for making of proper managerial decisions. 1.8 Programs themselves do not make decisions and do not run the companies. They are – the device. Programs do not cancel the management process, but help the head to run the company based on operational accurate information. Decision making, based on facts, is the requirement of paragraph 7 of the main principles of the standard of quality management ISO

Operational control and analytics by means of the ND-OFFICE Part 2: Software and Hardware assistance based on the ND-OFFICE in organization of procedures monitoring. 2.1 The ND Software and Hardware in full configuration consists of: specialized electronic cash register, fuel distribution panel; The ND-OFFICE information integration system (IIS); ultrasonic stationary level gage; scanners, reader units, terminals (connected with the specialized electronic cash registers); communication support (secured communication channels, hardware tools); servers on the filling stations and in central office. 6

Operational control and analytics by means of the ND-OFFICE 2.2 Software and Hardware based on the “ND-OFFICE” allow: - to realize the functions of movement of goods: income, expenditure, return, write-off, transfer; - to realize control functions: stock-taking, residual stock control. - to realize the price formation functions: extra charge, price change; to set up regulations of price change and mechanism (administrative – through orders, automated – is developed under the ND view, regional – is developed under the ND view and under the request of companies); - to realize loyalty functions: discount system, share support, reception of loyalty cards, etc. - to realize accounting functions: data acceptance (the scheme of data receipt to the ND-OFFICE), accounting, analysis, analytics, recommendations for managerial decision making 7

Operational control and analytics by means of the ND-OFFICE Part 3: Practical use of the ND-OFFICE in realization of control and monitoring functions in the filling station; what will get every department/head of the company in the result of the introduction of the ND-OFFICE (expected results) (another type of the classification – beneficial from the ND-OFFICE – for various positions): 3.1 List of the considered positions, using of the ND-OFFICE in their work : staff of the filling station complex(operator-cashier, shift supervisor, goods manager, manager of the filling station complex); central office staff (group manager – subdivision manager, categorical fuel and goods managers, accountant, analyst, controller; maintenance department; the head of the company. 3.2 General: necessary data for the work of the departments received promptly and in full, and that results in decreasing of the conflict between the departments and increasing of the moral environment in group; 8

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.3 Operator-cashier: convenient interface of the work in the system; automated processes of data input (scanners, readers). 3.4 Shift supervisor: simplified fuel reception procedure (readings of actual remaining quantities are taken automatically – level gage); simple procedure of price change (automatic price change from office is possible – by the additional inquiry of the filling station); automatic shift report preparation (including printing and transfer to the central office). 9

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.5 Goods manager: obtaining of the operational information about the sales and residual stocks (automatic data transfer to the central office and, possible in future, to the supplier of the corresponding category); control of the incoming goods to their presence in Common data base, automated process of the stock-taking (automatic preparation of the report sheets, use of the storage scanners); convenient input interface of the incoming bill of parcels; automatic transfer of input incoming bill of parcels to the central office. 10

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.6 Manager of the filling station complex, group manager (subdivision manager): convenient interface for planning and accounting of the filling station complex; operational monitoring of the work of the filling station complex (filling station): income (the time of the tank track arrival, discharge time, duration of the sales downtime over the drainable fuel type, check of the level gage readings and book residue), expenditure (determination of the daily and weekly peaks – planning of the effective work of the staff, monitoring of the correctness of fuel delivery by cards and coupons); ease of the realization control by payment types, by fuel types; logistics optimization of fuel and goods (with the further passage to the automatic orders); possibility of the obtaining of full information concerning the work of the filling station complex (filling stations) due to automatic event logs. 11

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.7 Fuel and goods categorical managers: simple and operative acquisition of full information in the filling station as to a residual stock and realization; simple procedures of the residual stock and sales analysis, management by the stock (providing of the standard turnover); introduction of the common base of range of goods and fuel throughout the whole filling station; operative price control throughout the whole filling station (maybe random); income/expenditure/write-off automated workflow of goods throughout the whole filling station/filling station complex; maintenance of the connection to the supplier of goods in inner movements; increasing of the realization level by means of the improvement of the control and manageability; operative control of fuel availability (movement) in all tanks of the filling station; 12

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.8 Accountant: simple and operative obtaining of the data charts and documents for the computerized loading to the accounting software; access to the database of the ND-OFFICE for the obtaining of the additional information; 3.9 Analytics department: automated procedures of realization, cost-benefit, profitability, turnover analysis; calculation of the range of analytic characteristics: average check, bargain per square meter of the square of shop, customer share of the related goods and services towards the fuel customers, bargain of the related goods and services per liter of the realized fuel (fuel – anchor), etc.; 13

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.10 Control department – security service: full picture state of the residual stock of fuel, related goods and cash funds in safes of the specialized electronic cash registers (constant stock-taking, operational readings of level gages); full operative picture of the resulted fuel movement in tanks in comparison with book reading (in level gage use, connected with the specialized electronic cash registers); embezzlement control procedure (reading of the storage counters, event, operator activities log: the specialized electronic cash register – log TS, financial memorandum – the inner accounts, ND-OFFICE – all transactions); statistics by cards, used several times during the day, by cards and coupons, served without the connection of the receive terminal to the specialized electronic cash register (in sale base the transaction number is absent). 14

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.11 Maintenance department: constant remote monitoring of the filling station configuration: specialized electronic cash register, tanks, level gages, fuel distribution panel, database maintenance of the equipment used in the filling station (just now – in minimum configuration, extension of the functional is possible); installation automation to the objects of new specialized electronic cash registers and manager WKS (workstation); remote control of the work of the fuel distribution panel with the help of reading non-zeroed electronic counters; fuel spill control in the filling station in general and in separate fuel distribution panels; assistance in working off the off-nominal situations in the filling station,occurred in the result of equipment error (closing of the checks of different types of payment, transaction checking, received by the central office with Z-accounts); decreasing of costs on service by means of the prompt equipment maintenance prevention. 15

Operational control and analytics by means of the ND-OFFICE Expected results from the introduction of the ND-OFFICE 3.12 The head of the company: operative monitoring of the work of the company in convenient format, form (performance specification is necessary); possibility of the influence on certain processes or work of the subdivisions by means of the problem localization (deviation from the practice «punishment of guiltless, awarding of the not implicated in», «who was the first when one was cross…»); improvement of coordination of subdivisions work; sufficient information for the determination of «bottle neck» and directions of growth (range, seasonality, necessity of services); shift of priorities of the work of the headship from administrative-and-household to the economic planning and strategic; appearance of the parallel irrespective of the staff channels for the obtaining of the operational information (under appropriate right of access) – monopoly of the staff to the information supply is lost (any monopoly is inclined to distortion). 16

Operational control and analytics by means of the ND-OFFICE Part 4: 4. Why are the Software and Hardware from the ND: 4.1 ND-OFFICE – is not a half-finished product, but a complete solution, built on the basis of the evolutionary performance specification (nowadays – base performance specification); 4.2 Introduction experience – Ukrainian largest companies (Lukoil, Galneftegas, KLO, filling stations of AGNKS, more than 200 filling stations); 4.3 Availability of the sufficient resources for the modernization and software revision (construction department, production); 4.4 Availability of the sufficient resources and contacts for the coordination of the work of the ND-OFFICE system with software products of the outside producers; 4.5 Providing of the format and data presentations in bases of the ND-OFFICE for functional growth by programmers of the filling stations; 4.6 Availability of full complex of introduction and support (hardware and software) of product: introduction department and network of the service centers throughout the Ukrainian territory; 4.7 In Ukraine there are no any worthy and good-enough price decisions for the automation of the filling stations. 17

Operational control and analytics by means of the ND-OFFICE Part 5: The realization of the accurate making of the management decisions consists of such stages: А) information acquisition in the central office and its storage 22

Operational control and analytics by means of the ND-OFFICE Part 5: B) information systematization in central office 23

Operational control and analytics by means of the ND-OFFICE Part 5: C) analysis of the systematic information in central office (passing to the questions, solved by the head, maybe, using advices; the field of the consulting responsibility– the field of work with people – regulations of the work of people is necessary, possibly different from the existing in the company): - who and by which criteria analyses, of what frequency, provides somebody the results of the analysis, which decisions are made; - who can set the performance specification and compare with the existing possibilities of the ND-OFFICE and procedures in company (the question is partially solved); - the use of the OLAP (examples of constructions of graphs in various criteria: by fuel type, by payment type, by filling station complex); - the policy of the report revision is necessary (independent use of the FastReport is possible). 24

Operational control and analytics by the means of the ND-OFFICE Part 5: D) Making of decisions based on the analysis of the processed data – is realized in case of the full performance of ALL preceding points (the development of the configuration of the working place of the manager is possible for the obtaining the parallel short information about the situation in digital and graphic forms, for the configuration development the order formalization to the revision is possible). E) The receiving of the additional profit by means of the accurate decisions making – is realized in case of full performance of ALL preceding points. 25

Operational control and analytics by means of the ND-OFFICE 26

Operation scheme of the complex of the “ND-OFFICE” 27