Empowering Business in Real Time © Copyright 2010, OSIsoft LLC All rights Reserved. Regional Seminar Costa Rica June 29, 2010

2 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Corporate History  Corporate – Founded 1980, Private  Dr. J. P. Kennedy, Founder and CEO  Employees – 685  Engineering – 210 Cust. Support – 200  Sales and Marketing – 175 Operations – 100  Geography  Doing business in 110 countries  23 offices in 13 countries with corporate presence in 10.  Installed Base  Active Customers  Active System licenses (excluding OEM)  I/F licenses (connection, node, server, site)  clients licenses (individual, concurrent, enterprise)  Data Streams  Monitor 500 PI servers, Host computers & interfaces

3 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Calgary, Alberta San Leandro, CA Phoenix, AZ Houston and Longview,TX Perth, Australia Singapore São Paulo, Brazil Tokyo, Japan (OSIsoft) Seoul (AID) Tokyo, Japan (Yokogawa) Manama, Bahrain (MECA / EMI) Shanghai China Montréal, Québec Philadelphia, PA Mayfield Heights, OH Johnson City, TN Savannah, GA OSIsoft Sales Offices Mexico Tech Support Centers Durban South Africa Geographical Locations OSIsoft Offices – in development Madrid Beijing Moscow London Paris Frankfurt Ostrava, CR Mumbai Planned Office Engineering centers

4 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Sales by verticals

5 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Current Core Segments Power & Utilities 40 % Electricity, Water, Fuels, Heating Generation, Transmission, Distribution, Consumption Process Industries 50 % Primary & Secondary processing of raw materials Extraction, Conditioning, Refining, Finishing Discrete Manufacturing 5 %  CPG Automotive Semi Conductors RA Partnership OSIsoft Sales Facilities & Data Center (incl. Non- industrial) 5 %  Financial, Software, Retail, On line businesses, Telecom Energy, Asset Mgt Real-time monitoring

© Copyright 2010, OSIsoft LLC All rights Reserved. 6 Empowering Business in Real Time The PI System

7 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Present View data, identify problems, and take corrective action with familiar, easy-to-use graphical tools. Visuals Analyze Access real-time or historical role-based data for the entire enterprise at any time. Analytics Connect Collect data from hundreds of sources. Interfaces Manage Gather and archive large volumes of data. Scale to meet your growing business needs. Servers – Product offered - The PI System

8 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Present (Visuals) Analyze (Analytics) Connect (Interfaces) Manage (Servers) Connect (Interfaces) Real-time I/F Programmatic Table Based IT AMI - business ERP - Gateway DCS PLC SCADA OPC DA/HDA 3 rd Party COM Connector SDK API OLEDB ODBC/JDBC SQL MDUS (SOA)DataAccessSNMP, PING Event Monitor TCP Response, Etc The PI System: Connect AMI - meters Head End System Interfaces Electric Meters Gas Meters Water Meters Interfaces

9 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PI Data Services PI Data Access (PI SDK) PI Data Access (PI SDK) Relational Data (OLEDB) Relational Data (OLEDB) Web Service Data Managed Provider AF Server SQL Server PI Archive Present (Visuals) Analyze (Analytics) Connect (Interfaces) (Servers) Manage (PI Servers) The PI System: Manage

10 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Present (Visuals) Analyze (Analytics) Connect (Interfaces) Manage (Servers) Analyze (Analytics) PI Advanced Computing Engine PI Notifications PI Analytics Totalizer, Alarm, RTSQC, etc. PI Analytics Totalizer, Alarm, RTSQC, etc The PI System: Analyze

11 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Present (Visuals) Analyze (Analytics) Connect (Interfaces) Manage (Servers) Web PI Web Parts Desktop Present (Visuals) ProcessBook ActiveView RtPM Business Package DataLink DataLink Excel Services Manual Logger The PI System: Present

12 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PI Extends Across the Plant Ecosystem to Improve Operational Visibility Connect (Interfaces) Manage (Servers) Analyze (Analytics) Present (Visuals)

13 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved – Value Proposition Mandates of Customers Quality & Quantity Reliability & Availability (Asset, Product) Compliance Use of capital (ROCE) Environment, Safety, Health & Hygiene Innovation Performance Economic Performance Resource (Energy) Management & Optimization Capabilities of PI Archiving (digital retention) Analysis Reporting Notifications Trending Ease of access to data Ease of use of the data Availability of data Scalability & Extensibility Visualisation Contextualize

14 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. 

15 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Sample Use Cases $ Trend 20 Years of data online Avoided equip. failure Visualization of disparate data sources

16 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved – Reference Customers Avoided $150 Million in Capital Spending to meet Environmental legislation Avoided $150 Million in Capital Spending to meet Environmental legislation Saved $20 million in Energy Costs Saved $20 million in Energy Costs Eliminated $12 million in annual recurring energy costs Eliminated $12 million in annual recurring energy costs Saved $5 per ton in Maintenance costs in Paper Mill operations Saved $5 per ton in Maintenance costs in Paper Mill operations Reduced maintenance costs by 3% and lowered systems management costs by a 3 to 2 ratio Reduced maintenance costs by 3% and lowered systems management costs by a 3 to 2 ratio

17 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. $2.4 million savings in just one chemical plant, in production and maintenance $2.4 million savings in just one chemical plant, in production and maintenance Improved controlling over operations gains 41% return in 3.5 years (OEE, KPI’s) Improved controlling over operations gains 41% return in 3.5 years (OEE, KPI’s) $1M Reduction of Electricity Costs in First Year $1M Reduction of Electricity Costs in First Year Increased diesel yield earned an $1 million increase in profitability Increased diesel yield earned an $1 million increase in profitability Saved over $500,000 in one mill by using PI for real time Saved over $500,000 in one mill by using PI for real time costing and decision support for operators $5 million benefits from capture of KPI’s and related performance data from operating facilities $5 million benefits from capture of KPI’s and related performance data from operating facilities – Reference Customers

© Copyright 2010, OSIsoft LLC All rights Reserved. 18 Empowering Business in Real Time The Smart Grid

19 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Smart Grid – Largest Plant AMIPower Generation Energy Management Support Transmission & Distribution Dashboard Convergence of Energy & Information

20 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Why a “Smarter Grid” UC Presentation – Ice Energy,... Smart Grid Economics, 2009, San Francisco

21 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. The Smart Grid Business Applications Residential GenerationMarketing Operations Substation Automation Grid Operations Commercial and Industrial Distribution Automation

22 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PI System : Foundation for the Smart Grid

23 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. The Smart Grid The Smart Grid will link electricity producers, distributors and end-users with high-speed networks that provide useful, actionable, real-time information about system capacities, demand, prices, and status. The Smart Grid will be self-healing and hence more reliable. The Smart Grid will empower customers.

© Copyright 2010, OSIsoft LLC All rights Reserved. 24 Empowering Business in Real Time Renewable Generation

25 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. The Challenge of Intermittent Generation

26 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Asset Utilization  Availability  Is asset online?  Efficiency  Is asset performing to expected levels?

27 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Value of Availability Hours TurbineClass (kW) Capacity FactorAvailability Annual Expected Output (kWh)* Busbar Price /kWh Annual Cash Flow per WTG %100% 1,734, $ 73, %100% 2,890, $ 122, %100% 4,336, $ 184, %100% 5,781, $ 245, %100% 7,227, $ 307, %100% 14,454, $ 614, *Formula = Hours * Generator Capacity * Capacity Factor * Availability A typical utility scale wind farm may have 30 to 200 Turbines Large owners (e.g. Iberdrola – 3500MWs) may have thousands of turbines A single percentage point gain/loss of “in-market” availability (e.g. turbines available to operate when the wind is blowing) for Iberdrola Total Fleet would result in a 1 st Year ROI/loss of $4.3MUSD. NPV over 5 Years = 18% Discount Rate Based on US prices, power rate in Spain is.07 to.10/kWh produced For a Single Wind Farm of 150MWs: In a 1 st year ROI of $185,000 NPV over 5 years = 18% Discount Rate

28 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Iberdrola WindCORE  Cost reduction in O&M By centralizing operation, resource optimization is achieved with a significant reduction of local staff  Reduction of unavailability costs Continuous monitoring and remote operation of wind farms Remote pre-diagnosis and activation of local maintenance squads for the solution of failures  Implementation of energy control functions To meet new grid operation requirements based on high penetration rate of wind energy…  Centralized way to communicate with other energy management centres

29 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. Iberdrola WindCORE  Historic Data Storage  Historic Reports  Calculation  Reports

30 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PPM  Uses PI to:  Manage “Fuel”  Deal with many units and wide geographic distribution; often in remote locatons.  Normalizes data from several turbine manufacturers  Deal with complexity of Markets

31 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PPM: Reliability and Availability

32 Empowering Business in Real Time. © Copyright 2010, OSIsoft LLC All rights Reserved. PPM: Portfolio Overview

Thank you © Copyright 2010 OSIsoft, LLC 777 Davis St., Suite 250 San Leandro, CA 94577