Hyatt Hill Country Management Meeting August 4, 2000 Process Industry Overview

1. Hyatt Hill Country Management MeetingAugust 4, 2000Process Industry Overview

2. Focus • The “Process Industry” represents a huge number of companies and areas of opportunity. • The key for us going forward is to focus on those solutions sets that are required and bring value to our clients, but also to focus so that we have the ability to deliver. • To do this we must determine those areas of opportunity by ourselves and with our alliance partners and then pursue them. Major areas include: • ERP • Supply Chain • e-Business

3. Why this Focus? • E-Business and Supply Chain “The customer now expects a level of visibility into the selling organization that was previously available only to internal employees. Buyers want to know not only the price and availability of the product, but the ship date and the dates that the seller will receive the item or its components.” “E-supply chain and logistics operations offer customers an integrated view of corporate operations. Businesses that excel in this type of environment can slash costs and increase margins by earning customer loyalty. But companies that don’t take the customer experience seriously stand to lose even more, because customers have come to expect the information to be available immediately and at their fingertips. If your competitor can provide this and you can’t, they won’t be your customer for long.” Building and tuning e-supply chain operations to optimize the customer experience is a multiphase effort. The e-supply chain effort requires not only a comprehensive strategy, and state-of-the-art technology, but implementation expertise and, in most cases, corporate cultural change. Sam Kapreilian - global CRM partner - PwC

4. Leverage • Within the Process Industry space, we cannot work the opportunities alone. • Leverage of other PwC resources is a key. • One area of leverage is the IP (Industrial Process) area of CIP • Key relationship with Global IP Leader - Doug Hayhurst • Key relationships with other leaders in East BU and EMEA • Working relationship with IP to gain “critical mass” for our marketing/ sales efforts as well as knowledge base and resource needs • Global IP areas include: • Chemicals (exclusion of MWBU) • Forestry Products • Metals (exclusion of MWBU)

5. Acquire Materials Process (mix, react, package) Specialty Chemical Petro-Chemical Supply & Transport Market & Sell Distribute & Transport Acquire Feedstocks & Materials Process (crack, react, distill) Petroleum Value Chain & Process Areas Refine & Process Feedstocks Forestry Products Metals Supply & Transport Supply & Transport Market & Sell Market & Sell Acquire Materials Fiber and Material Supply Mgm’t Process (Chip, mix, form, cut, shape, package) Process (Refine, Form, Shape) Distribute & Transport Distribute & Transport The Process Industry Mining Explore & Dev. Reserves Extract & Process Market & Sell Acquire & Admin. Leases Acquire Materials Refine Distribute & Transport

6. Key Initiatives • Consult • e-Business (Strategy) • Value Chain Enablement • Stategic Sourcing • VBM • IT Strategy • Business Case • BPO Due Diligence • ERP • Build • ERP • (SAP, IS-OIL) • e-Procurement • Commerce One • Ariba • mySAP.com • IPM/BW • Supply Chain and e-Supply Chain Operate SAP ASP • New Ventures • STARS Disposition • Oilmonitor.com • Potential • ASP/APO

7. Key Initiatives • e-Business • What is the need: • Assist companies in defining (or identifying) the value proposition • Identify offensive (top line growth) as well as defensive (bottom line maintenance) strategies • Develop the understanding that efficiency of internal processes and systems is critical for any e-Business project to be successful. • Create the vision of what the future (2 - 3 years) will look like, and a roadmap to get there. Clients know that e-Business is real • Opportunity • Clients are confused as to how this will play out • Nobody has introduced a product analogous to what SAP was to the ERP space • AC and IBM are formidable competitors. After the three of us, there is a significant drop off, but AC dominates the marketplaces in process industries

8. Key Initiatives • e-Business - Opportunity (continued) • The game is almost over on MRO procurement and browser to browser areas • Next big things will be the industry backed Hubs and Exchanges, CPFR, and ex-Sourcing (using the internet to enable outsourcing of processes) • BPO would be an excellent entry to ex-Sourcing • AspenTech is an entry into CPFR • e-Supply Chain • Clients beginning to look beyond ‘e-commerce’ to what underpins e-business. Several exchanges showing interest. • Gartner/ AMR suggest 10:1 leverage of back end to front end needs • Energy needs to work with e-SCM vendors to get into this space. • AspenTech Integrated e-supply Chain • i2/ Honeywell Value Chain Optimization

9. Key Initiatives • Supply Chain • Whether “e” or not, supply chain is beginning to get more press. • Once again, the supply chain efforts are looked at as supporting the other business initiatives. Key areas of opportunity include: • Downstream planning and scheduling within and without the gates • Chemical and Downstream integrated supply chain as well as point solutions • e-Procurement • Commerce One, Ariba, and mySAP.com are key enablers and thus initiatives in their own right. • Strategy is to sell them alone or as a bundle with ERP. • Also tend to be an outcome of the “consult” work in e-Business strategy • SAP • Always a key initiative based on upgrades and expansion of services to existing clients

10. Key Initiatives • STARS Disposition • What are we doing or planning to do • Doing ongoing Koch and PdVSA support • Potential to leverage STARS for integration between Petrolsoft/AspenTech • Potential to sell 2.3 code base to PdVSA/INTESA so they can market in South America • Potential ASP situation for Koch • React to all other opportunities • Why key to find partner/ buyer • Probably not likely that a standalone implementation will ever sell in U.S. • STARS establishes our credibility in industry space • Means for developing staff • Excellent code base/knowledge/experience to leverage into other work

11. Key Initiatives • IPM/BW • Leverage Upstream work/templates (VBM, data warehouse) and credentials to develop an offering for process markets • Create a discussion document to present to targets that includes benefits, approach, and high-level technology • Work with Ron Brennan/Bob Gruman/Brian Harry to develop • Determine target companies based on relationships, existing technology • Oilmonitor.com • Develop plan to spin-off into more integrated offerings (e.g. Honeywell myplant.com, Aspen Tech’s processcity.com, oil trading site - PEPEX.net) • Quality Management module - work with testing companies (SGS, worldwidetesting.com) to develop critical user mass • Competitive Analysis and Crude Valuation modules - work with oil media companies -- Platt’s, Argus -- to tap existing channels to market

12. Key Alliances Consult Build SAP AG Commerce One Ariba mySAP.com AspenTech i2/ Honeywell Operate BP Solution SAP AG New Ventures STARS Disposition

13. Key Alliances • AspenTech • Functionally cover downstream (refining), petrochemicals, chemicals, and utilities. Span supply chain (integrated), MES spaces, and e-supply chain. • Target Energy clients include: Marathon, BP Chemical, OxyChem, Hess, Koch, Citgo, Equilon Lubes • Currently 15 overall staff trained in MIMI Supply Chain tools (all engaged either on MIMI or non-MIMI projects). Looking to hire more experience and continue training programs. • Investment in Energy relating to integrated supply chain in downstream and chemicals relating to e-supply chain. • AspenTech/Petrolsoft • Functional coverage - STARS 3.x functionality: refinery to rack; probably volumetric logic mainly • Target clients - Aspen/Petrolsoft targets including BP, PdVSA, Chevron(?) • Staff trained - None in Petrolsoft, but Petrolsoft has offered to provide free training to some of our staff.

14. Key Alliances • i2/ Honeywell • Functionally cover downstream (refining) for this alliance (Energy related). Span supply chain (integrated), and MES spaces. • Currently staff training requirements are to be determined. Will leverage the i2 relation in other industries as well as trained staff as appropriate. • Investment in Energy relating to this alliance is to be determined.

15. Key Alliances • Commerce One, Ariba, mySAP.com • Will work with the national/ regional groups to further these alliances as they apply to Energy • Focus on standalone and/or bundled with ERP selling • Key enabling toolsets for FVP and strategic work as money saved with these tools drops straight to the bottom line • SAP • Don Domangue to speak separately

16. Key Solution Sets • Consult • IPM • FVP • e-Strategy • 4 box model • 7 co model • Build • ERP • SAP IS-OIL • BW • mySAP.com • Commerce One • Ariba • AspenTech • i2 / Honeywell Operate Chemical BPO/ APO New Ventures Oilmonitor.com

17. Key Solution Sets • AspenTech • Primary solutions sets identified include: • Trading/ optimization/ scheduling linkage for crude supply • Integrated supply chain from refinery to retail station - vision and solution • Improved planning and operations linkage inside and outside of plants • Focus on those key issues facing our downstream client base. Similar chemical focus solutions sets are being determined. • PwC needs to understand tools required, help build value proposition, leverage business case, and provide implementation abilities • i2 / Honeywell • Value Chain Optimization • Across downstream market looking at integrated supply chain abilities • PwC needs to understand tools required, help build value proposition, leverage business case, and provide implementation abilities

18. Key Solution Sets • Oilmonitor.com • Per “key initiative”: Develop plan to spin-off into more integrated offerings (e.g. Honeywell myplant.com, AspenTech’s processcity.com, oil trading site - PEPEX.net) • IPM/ BW • Demonstration prototype? - VBM linked to performance management, also showing leverage of existing technology (e.g. SAP BW)

19. Key Solution Sets • e-Strategy • The game is almost over on MRO procurement and browser to browser areas • Next big things will be the industry backed Hubs and Exchanges, CPFR, and ex-Sourcing (using the internet to enable outsourcing of processes) • Leverage leadership in the area of Exchanges and utilize alliance partner abilities to deliver Hub and Exchange solutions, especially focusing on the B2B area and supply chain support behind the B2B

20. Key Solution Sets • FVP • While there may be some settling of the demand for MRO procurement in the future, it has not abated as of yet. • Continue to leverage this area with our key clients to gain up front savings that can then be utilized to drive other value initiatives such as integrated supply chain, etc. • Leverage good relations with our alliance vendors • Commerce One • Ariba • mySAP.com

21. Key Solution Sets • ERP • Most of major downstream and chemical clients have already initially implemented • Drive continued ERP expansion into existing clients through upgrades, expansion of capabilities, and/or improvements (including process improvements) to existing. • Chemical APO/ BPO • Leverage and expand on successes at BP Chemicals in this area. • Work closely with the BPO/ APO group to position this as a business value proposition that can be copied at other larger chemical clients.

22. Process Markets “A” List BP Marathon Magnet Exchange Chevron Shell Tosco ExxonMobil Process Markets “B” List Amerada Hess ISPAT Unocal Key Targets