Updates to Our NACE Offering Welcome and thank you for taking the time to review this breeze. Today, we are going to walk you through some recent updates to our NACE offering, so you are better prepared to handle customer requests for NACE.

What does NACE mean to us? Standard applicable to Oil & Gas industry Two material standards for metal materials (recommends materials for sour services): ISO 15156/MR0175, Sour Production MR0103, Sour Refining We have material options in our products that meet NACE requirements Our customers ask us for NACE complaint materials Some customers assume that if they’ve asked for NACE compliant materials, they will get a cert What does NACE mean to us? First of all, NACE is a standard that applies specifically to the Oil & Gas industry. There are two material standards for metal materials – ISO 15156 or MR0175 for sour production applications and MR0103 for sour refining applications. There are material options within our products that meet NACE. Our customers often request NACE compliant materials and when they do, they expect to receive a certificate stating compliance to NACE.

How Do We Identify and Order a Product that Meets NACE today? We are inconsistent across our products Options in the Model Number for CPS Items Examples: J5 for DP Flow, T for 1199, SG for Manifolds Q15 and Q25 Order Level Certs One certificate for the entire shipment Other supporting documents: Footnote on Product Datasheets NACE Compliant Specification Control Drawings Technical Datasheet “Corrosion and Its Effects”, p/n 00816-0100-3045 How do we identify and order a product that meets NACE today? First of all, we are very inconsistent from product to product. Some models have options in the model number that specify NACE. Code J5 for DP flowmeters and Code T for 1199 remote seals are good examples. However, when it comes to the actual certificate, we process Q15 and Q25 as an order level certificate – one cert for the entire shipment. We also have various support documents to help identify NACE compliant materials, including footnotes in our product datasheets and NACE compliant spec control drawings.

How are NACE orders processed today? Our NACE certificates today are processed as order level certs One certificate for the entire shipment Customer care should be indicating which lines meet NACE Customer has to know to ask for a NACE certificate Cert Generation Process provides many opportunities for error Many manual checks and steps to verify NACE compliance Risk of providing a NACE compliant cert for non-compliant assembly So, how are NACE orders processed today? As mentioned, we process our NACE certificates as order level certificates – one certificate for the entire shipment. Customer care should be indicating which lines meet NACE. In reality, this seldom happens. Furthermore, the customer has to know to ask for a NACE certificate. The actual cert generation process has a lot of opportunities for errors. There are many manual checks that need to be made to ensure the products meet NACE – these checks are sometimes made by a non-technical group. This poses a risk of providing a NACE cert for non-compliant assemblies.

New Q15 & Q25 Option Codes Drive Unit Level Certificates We have created Q15 and Q25 option codes for all pressure transmitter models Database drives logic to validate model number at time of order entry Eliminates guess work, validation logic in our global database systems allows only those options that meet NACE We will send out Q15 and Q25 as unit level certificates Every transmitter will get a certificate Assemblies will have one cert for both the transmitter and CPS component Ultimate goal is to have consistent Q15 and Q25 option codes for all product families worldwide Pressure first, other products to follow Our new Q15 and Q25 option codes will now drive unit level certificates. These new option codes have been created for all of our pressure transmitter models. Database logic is in place to ensure a valid model number when the order is entered. This eliminates guess work and ensures that we only send out certificates for NACE compliant models. With the change to unit level certificates, we will send out one certificate for each transmitter ordered. If there is an assembly, such as a transmitter assembled to a manifold, one cert will be issued for the transmitter and the CPS component. Our ultimate goal is to provide consistent Q15 and Q25 option codes across Rosemount on a global basis. We are starting with pressure and other products will follow.

Global NACE Cert Advantages We gain visibility to the applications where our products are being used We will be providing customers with what they need Opportunity to show that we are focused on the customer’s needs in these applications We can be confident that every NACE specified product meets NACE requirements There are many advantages to globally consistent Q15 and Q25 NACE certs. For starters, we gain visibility to NACE applications and can track how often customers order NACE. We will provide customers with the documentation they need. It’s also a great opportunity to show our oil and gas customers that we are focused on their NACE application needs. And we can be confident that when we say we meet NACE, we really DO meet NACE.

New NACE Option Code Descriptions Available Now For Sour Production: Q15: Certificate of Compliance to NACE MR0175/ISO 15156 for wetted materials For Sour Refining: Q25: Certificate of Compliance to NACE MR0103 for wetted materials Price adder is $42 US List With this change, there are two new model option codes for NACE. The first is for sour production – Q15, Certificate of Compliance to NACE MR0175/ISO 15156 for wetted materials. The second is for sour refining - Q25, Certificate of Compliance to NACE MR0103 for wetted materials. Each option will be a $42 US list adder, which is consistent with our hazardous location certifications. Remember this will be charged per unit versus per order. Our past order level certificate for Q15 or Q25 was $50 per order, independent of quantity, so the new pricing will impact our customers, especially on large projects. If you encounter pricing issues, please work with world area marketing. All supporting documentation, such as Product Data Sheets, will be updated the next time they are revised to include these new option codes. Supporting documentation will be updated at next revision

Detailed Model Plan by Phases Phase I Models (Dec 2012) 3051S (SAM, SAL, SMV) 3051C/T/L 2051C/T/L 2088 3095FB/FT 4088 205 4600 Phase II Models (Q3 FY13) 304, 305, 306 1199 1195 405 485 585 3051SFx 3051CFx 2051CFx The detailed plan is as follows. In Phase I, which has been officially implemented, all pressure models will have the Q15 and Q25 model codes. The CPS items----manifolds, 1199 seals, and primary elements will need to be specified with their existing NACE codes if they are assembled to a transmitter that has a Q15 or Q25 code. We will go through some examples in the following slides to walk through this. In Phase II, we will be adding the Q15 and Q25 options to all CPS models codes and to our flowmeters. You will hear more about this later in FY13.

Pressure Example Customer requests a 3051S1CD2A2A11A1A with a 305RC32B11 that meets NACE MR0175. What do you quote? Let’s walk through a few examples. In this first basic pressure example, a customer calls up and requests a 3051S with a 305 manifold and asks that it meet NACE MR0175. What should you quote?

Pressure Example Customer requests a 3051S1CD2A2A11A1A with a 305RC32B11 that meets NACE MR0175. What do you quote? Answer: Add Q15 to the transmitter model: 3051S1CD2A2A11A1AQ15 Add SG to the manifold model: 305RC32B11SG You would need to add Q15 to the transmitter model. Per the current process, you would add the SG code to the manifold to drive the appropriate materials. Notice that both the transmitter model and the manifold model each have a NACE option code. Remember in Phase II, summer 2013, we will be adding the Q15 and Q25 options to all CPS models codes including manifolds.

DP Flow Example Customer requests a 3051SFC Conditioning Orifice Flowmeter that meets NACE MR0175. What do you quote? The current model number is 3051SFC1CS060N065T32JA1A3 Let’s try a DP Flow example. Your customer calls up and requests a 3051SFC Conditioning Orifice flowmeter that meets NACE MR0175. What would you quote? Based on the customer’s application requirements, you’ve built up the current model number as shown. But now you need to add NACE.

DP Flow Example Customer requests a 3051SFC Conditioning Orifice Flowmeter that meets NACE MR0175. What do you quote? The current model number is 3051SFC1CS060N065T32JA1A3 Answer: Add J5 to the flowmeter model number: 3051SFC1CS060N065T32JA1A3J5 In this case, you would add J5 to the flowmeter model number to include NACE. Remember in Phase II, summer 2013, we will be adding the Q15 and Q25 options to all CPS models codes including flowmeters.

DP Level Example Customer wants to order a Tuned System that meets NACE MR0103. What do you quote? The current model number is 3051SAL1CD2AA1A1020DFFW71DA00 and 1199MDB10AFFW71DA00 Our final example is a DP Level example. Your customer calls up and wants to order a Tuned System that meets NACE MR0103. Based on application requirements, you’ve determined the following model number – a 3051SAL with a remote seal attached to the low side. But now you need to meet NACE. What should you quote?

DP Level Example Customer wants to order a Tuned System that meets NACE MR0103. What do you quote? The current model number is 3051SAL1CD2AA1A1020DFFW71DA00 and 1199MDB10AFFW71DA00 Answer: Add Q25 to the 3051SAL model number: 3051SAL1CD2AA1A1020DFFW71DA00Q25 Add T to the diaphragm seal model number: 1199MDB10AFFW71DA00T You will need to add Q25 to the model code for NACE compliant materials on the 3051SAL. Then, you will need to add code “T” to the 1199 diaphragm seal model number. In Phase II, summer 2013, we will be adding the Q15 and Q25 models to diaphragm seal models as well.

Sample Q15 Certificate For your reference, here is an example of the new Q15 unit level certificate. You can see that it has been issued for one specific serial number and states compliance to NACE MR0175/ISO 15156.

Sample Q25 Certificate Here is an example of the new Q25 unit level certificate. It states compliance to NACE MR0103.

How does this apply to other products? Continue to specify NACE compliance as you have in the past Temperature uses the R05 for thermowells or sensors with thermowells Radar Level uses the N2 option where applicable Mobrey uses 2120 N option or 2130 with Q15/Q25 All products will adopt the new NACE unit level certificate One certificate per unit NACE certificates will be consistent for customers across product lines How does this apply to other Rosemount products? You should continue to specify NACE compliance as you have in the past. One example is the R05 on temperature thermowells. A few other examples of existing codes are shown here as well. Moving forward, all products will adopt the new NACE unit level certificate. That means that there will be one certificate per unit. This will ensure consistency for our customers across product lines.

Call to Action We are launching on January 28th You will need to ask your customer whether they need sour production or sour refining Q15: MR0175 (Sour Production) Q25: MR0103 (Sour Refining) So, what do you need to do going forward? Be aware of the upcoming launch and start quoting the new NACE option codes. Be sure to clarify your customers NACE requirements before you quote. And talk to your local specialists or world area marketing leader if you have any questions. Thanks and have a great day!