Pulp & Paper meets the Challenge

2. Pulp & Paper meets the Challenge Pulp & Paper Industry Forum INPP_01 Presented by Roger Evans, Director Global P&P Solutions 9/Nov/11

3. Pillars of Operational Excellence and Focus of This Discussion Operational Excellence Level 3 (Multi-plant/Multi-site) Environment And Safety People Level 2 (Plant Floor/Area) Asset Level 1 (Resource/Asset) Control

4. Where The Offerings We Will Discuss Fit Within TheInFusion Enterprise Control System

5. Invensys Enterprise Control Offerings Corporate Systems Industry Solutions Services: Consulting, Project Execution, Learning, Operational Improvement, Maintenance & Support Partner Ecosystem Corporate Operations Management Invensys and Third Party Manufacturing / Production Operations Automation Invensys and Third Party Enterprise Control System IT Platform Integration and Collaboration Platform

6. Agenda 9.00am P&P Industry update & Solutions Overview Roger Evans 9.30am Dynamic Performance Management Framework for a Pulp & Paper mill Ertan Yuzak 10.00amRoundtable discussion

7. Industry Update

8. Major Invensys Customers • AbitibiBowater • CMPC Celulosa S.A. • Fibria (Aracruz-VCP) • Georgia-Pacific • International Paper • MeadWestvaco • NewPage • RockTenn • Suzano Papel e Celulose • Verso Paper • Weyerhaeuser

9. Invensys Operations Management We work with: 23 of the top 25 petroleum companies 47 of the top 50 chemical companies 19 of the top 20 pharmaceutical companies 30 of the top 50 nuclear power plants More than 650 fossil power plants • We help produce: • 50% of Brazil’s Pulp • 20% of the world’s metals • 23% of the world’s chemicals • 62% of the world’s Liquid Natural Gas • 20% of the world’s electricity generation • 36% of the world’s nuclear energy generation • Annual sales US $2 Billion • 9,000 employees serving 35,000 customers, in more than 200,000 locations across 180 countries • Over 600,000 active software licenses

10. Lots of Restructuring • Industry Consolidation: • Rock-Tenn buys Smurfit - Packaging • IP buys Inland Empire - Packaging • UPM buys Myllykoski – printing & writing papers • Kapstone buys US Corrugated – Packaging, vertical integration • Asian companies closing in on global giants IP, StoraEnso, UPM and SCA: • APP – Paper Excellence regroups mills in mature economies (7 mills) • Nine Dragons • APRIL

11. NA Paper - bottoming out • AbitibiBowater out of Chapter 11 • White Birch and NewPage under Ch 11 protection • Tissue virtually recession-proof – several new machines in construction • Operating rates on Packaging grades back in the 90s • Recycle prices driven by Asian demand – NA mills struggle • Virgin fiber mills can expect a promising future

12. Pulp – Still Strong • Fiber demand growth driven by Asian countries. • Niche markets particularly strong: • Fluff pulp – several conversions: Plymouth, ARC, • Dissolving pulp – Fortress, Cosmopolis, Prince Albert

13. Overseas Developments • Europe – largely the same as N. America • Only one large pulp mill project under way (IP-Ilim, Bratsk Russia) • Asia – several large new machine projects dependant on imported pulp/recycle • Latin America – paper demand firm and growing steadily • –Rigesa (MWV) new linerboard machine • Latin America –New large pulp mills under construction: • Montes del Plata – 1.3 Million Tonnes • Eldorado, Brazil – 1.5 Million Tonnes • Suzano, Maranhao, Brazil – 1.5 Million Tonnes • Several more in planning phase in Brazil/Tasmania/Malaysia/Russia

14. Invensys Strategy • Solutions that meet recognized mill needs: • Advanced controls • Operator training simulators • Real-time costing and energy management • Data integration, manipulation and visualization • InFusion Enterprise Management System-based solutions and industry packages to reduce engineering of applications • Condition Monitoring • Mobile solutions

15. Solution Map for Invensys Operations Management in Pulp & paper O Operations Management MES Raw Materials Management Raw Materials Management Environmental Monitoring & Control Environmental Monitoring & Control Sales & Distribution Sales & Distribution Woodyard Mgmt. Long-term Planning & Scheduling Long-term Planning & Scheduling Financials Financials Loss Prevention Loss Prevention Metals Accounting Yield Accounting Product Quality Management Process History & Reporting Daily Production Planning Work-order Management Production Management Laboratory Information Management Enterprise Asset Mgmt. Alarm Management Plant Info Mgmt. Systems Logistics Management Roll tracking Operator Logbook Control and Optimization QCS control Trim Optimization Operator Training Simulator Grade change Optimization Utilities Optimization Paper machine Defect detection Water & effluent control Tie-line Control Coating Kitchen Control Stock Blending Control Dryer control Winder Control Steam distribution Control Chemical plant control Turbo Generator Control Paper machine Wet-end Control Digester Control Bleach Plant Control Pulp Dryer Control Washing & Screening Control Recovery Boiler control Recaustisizing Processing Lime Kiln. Control Evaporator Control

16. Business Value Creation

17. Business Value Creation Process Empower Real Time Business Empowerment Measure Real Time Business Measurements Improve Real Time Business Improvement

18. POC Value Site Engagement Model Improvement n o oo Improvement 2 $ Improvement 1 Empower Site Measurement & Empowerment Measure Improve BVS Audit Strategy, Financial , HR , Technology , Improvement Projects

19. Overall Business Value Solution Process Figure 4

20. Dynamic Performance Management Framework for a Pulp & Paper Mill Presented by Ertan Yuzak Invensys proprietary & confidential

21. Pulp & Paper Break-out Session Roundtable Discussion