After Hurricane Ike, Houston team wins three contracts to restore ExxonMobil facility.

l S E E P A G E 4

Weatheringthe Storm

ALSO INSIDE

l IPS Brazil wins major contracts with Petrobras. PAGE 6

l Global team of industry experts to support the Sales team. PAGE 8

l Say what? See what industry insiders have to say about IPS. PAGE 16

S H A R P E N I N G Y O U R W O R L D V I E W O F I P S 3 Q 0 8 • V O L . 1 N O . 1

l IPs has new technology that integrates automation and information into a single operating system. Technology has become an enabler, not an obstacle. IPS has served Petrobras for more than 50 years. Now, IPS Brazil can celebrate the largest contract in its history with this long-time client.

closeupsnapshot

F O C U S l 3

Inside this issue

4

6

8

l IPs professionals work in a consultative frame of mind to first understand our clients’ business needs, markets, competitive pressure and future state. Read more on how the IPS Team in North America pulled together to serve a key client, ExxonMobil, after a massive hurricane hit the Gulf Coast.

l IPs has solutions designed to meet specific business needs in key markets. Few can match our vast industry knowledge, information technology capability, business performance expertise and a track record of success over 100 years. Take a look inside the Strategic Sales Centers and how IPS employs a team of the best and the brightest to collaborate, analyze and win major deals across all industries.

Asia Pacific 10—––––—————––—EURA 11—––––—————––—Latin America 12—––––—————––—MEA 13—––––—————––—North America 14—––––—————––—

driven by IPS people

enabled by IPS technology

created by IPS solutions

worldwide updates

Welcome to focusGreetings IPs readers,

Welcome to the first issue of focus magazine. We’ve designed a vibrant and informative publication to be a valuable source of information about IPS. Each quarter, you’ll learn more about our performance, strategic direction and the industries we serve. The goal of focus is to share information on key events, contract wins, success stories and new business in one convenient magazine delivered in print and on the IPS intranet site.

When I joined the Global Communications team just a few months ago, I found out the employee VOICE survey indicated a need for more consistent communications about our business, market trends and the people driving the company’s success. This publication aims to help do just that. We heard your feedback and focus magazine is simply one of several solutions in store to deliver communications that inspire, inform and involve the IPS team around the world.

as you turn the pages of focus, you’ll notice three sections that mirror the framework of our tagline, “A Revolution in Performance,” which is how IPS is completely changing the game when it comes to impacting performance for clients. The Revolution in Performance comes to life for our clients through IPS people, technology and solutions, and each section features articles and highlights from the quarter.

anchoring the magazine are progress and performance snapshots from the five regions that make up IPS. Plus, each section features a short message from the region’s president. And finally, the back cover has the last word, a place to feature comments from clients, media, and industry analysts, providing an external view on the direction of IPS.

Please take a few moments to read your first focus, and join us in making it a valued resource for your colleagues. You can help by sending feedback, great story ideas and dynamic photos to focus.mail@ips.invensys.com. The best stories and photos from the world over will shape the content of focus magazine going forward.

so grab a camera, capture the innovative spirit of IPS and always remember to focus.

Enjoy,

cynthia BakerEDITOR OF focus AND IPS DIRECTOR OF INTERNAl COMMuNICATIONS

Global Communications publishes focus magazine for the team members of IPS. Please let us know what you think: focus welcomes feedback from our readers by email at focus.mail@ips.invensys.com or mail to IPS - Global Communications – focus Editor, 5601 Granite Parkway III, Suite 1000, Plano, TX 75024.

All correspondence must include your name, department, region, and phone number. letters may be edited for clarity and length. For more IPS news and information, visit the IPS intranet site.

After Hurricane Ike, Houston team wins three contracts to restore ExxonMobil facility

4 l F O C U S

driven by IPS people

Hurricane Ike smashed into the Gulf Coast as a Category 2 hurricane on September 12, destroying homes and businesses with powerful winds, rain and flooding.

No one knows what to expect during hurricane season. Yet, after the devastation from Hurricane Ike, ExxonMobil knew who to call. The ExxonMobil Chemical Facility in Beaumont, Texas, was under 7-feet of water. Plus, the facility had a severely damaged control room and numerous electronic devices were inoperable.

IPS quickly became the key business partner to support ExxonMobil during their recovery phase after the storm. Hurricane Ike was the third most destructive hurricane to ever hit the u.S. The storm hit the Gulf Coast as a Category 2 hurricane in September destroying homes and businesses with powerful winds, rain and flooding. Fortunately, no IPS team members were injured.

ExxonMobil approached IPS for its IA/Intelligent Automation/Foxboro® system to control the plant and for the Triconex® safety monitoring systems, with one caveat – their timeframe was six weeks. The chemical facility manufactures an additive used in fuel and downtime significantly hurts business.

“We realized the criticality of getting the plant back online and immediately began locating the global resources at IPS to address this issue,” said Eric Moorehead, Enterprise Client Executive for ExxonMobil.

Brian Smith, Client Executive for ExxonMobil explained that projects like these take much longer, but IPS was able to put the wheels in motion and make the deadline.

“ExxonMobil had a phenomenally accelerated schedule, and projects of this magnitude typically take six months,” said Smith. “We just looked at every angle of the project, singled out the elements with long-lead times and found ways to cut our time.”

Equipment at the ExxonMobil Chemical Facility in Beaumont, Texas, was under 7-feet of water.

IPS Wins Three Contracts to Restore ExxonMobil Facility near Houston IPS Wins Three Contracts to Restore ExxonMobil Facility near Houston

F O C U S l 5

Overall storm damages in the U.S.l u.S. coastal areas are

estimated at $27 billion in damages.

l Ike is the third costliest storm of all time.

Project Manager Rosemary Hollick said this project holds special significance for her because IPS was helping a client recover after such a devastating storm.

“We could all relate to what the client was going through,” she said. “Many of us had flood damage and no power for weeks. I think the fact that we were all in recovery mode energized the team, and we were thrilled to meet the deadline.”

Hollick explained the complete DCS functional system has been replaced in the plant with tremendous support from delivery, manufacturing and supply chain service team.

Two additional projects also got the green light as a part of the plant’s recovery. In Phase 2, with the replacement of numerous transmitters in the field, control valves and wiring

New incentive bonus plansIPS has established a new

framework for incentive pay. The new strategy ensures that top performers at IPS are rewarded for their exemplary work to drive the business forward, and it encourages all employees to meet their goals for professional success and development. The new framework was designed to address employee feedback from the IPS VOICE survey, which urged a creative focus on reward and recognition.

This framework contains a number of new bonus plans and modifications to some existing plans, which are in effect for the 2008-2009 fiscal year. The “All Employee Plan” (introduced in 2007) is discontinued and replaced by the revised programs.

Check with your manager or HR Business Partner for more details.

Incentive plans overviewl Leadership Bonus Plans (LBP) are

modified with a new funding model and award determination guidelines.

l Project Management Plan (PMP) is a globally consistent approach to reward Delivery project managers, lead engineers, and project teams based on improving revenue and margin performance and exceeding customer expectations.

l Technical & Professional Plan (TPP) provides an annual incentive opportunity for top performing engineering and professional employees.

l Above & Beyond Recognition Program is enhanced to provide more funding and opportunities to reward behaviors and results that reflect our core values and improve the business. All employees are eligible for awards under this program.

by ExxonMobil, loop checking became a critical path activity. Tom Azbell, Principal Service Engineer, is leading the effort with the support of nearly 20 IPS engineers from Canada and more than 100 instrument technicians from local companies.

For Phase 3, the third contract is for assistance to identify damaged instruments and specify and procure replacements for the aromatics plant. leading a small group of contractors on this project is Jean Rivard, IPS Senior Project Manager, from Montreal. “It’s a great experience here in Texas helping out my fellow North America team members,” said Rivard. “We are working hard to meet a very aggressive schedule, and the client seems pleased with the progress we have achieved so far.”

Gene Stewart, who works for ExxonMobil as the DCS team lead, said he couldn’t agree more. “The entire plant is impressed with what IPS was able to pull off here in a matter of weeks,” he said. “The process has worked extremely well, and the level of support has really exceeded our expectations. The (North America) president, Steve Blair came out and did a site visit. That says a lot to me about the kind of organization IPS is – they have employed some great people.”

totally new

Equipment at the ExxonMobil Chemical Facility in Beaumont, Texas, was under 7-feet of water.

IPS Wins Three Contracts to Restore ExxonMobil Facility near Houston IPS Wins Three Contracts to Restore ExxonMobil Facility near Houston

Making history results for the first half of this year are breaking records in IPs Brazil. the sales team has secured

one of the largest contracts in the history of the region.

As an international oil and gas giant and one of the world’s largest companies, Petrobras signed two contracts for IPS solutions.

under the terms of the agreements, IPS Brazil will implement Triconex® safety and critical controls and Avantis® asset management technology to upgrade and modernize many of the Petrobras refineries throughout Brazil. The Global Triconex agreement for existing refineries and the Safety Integrated System contract for the upcoming RNEST refinery will have a significant impact on IPS Brazil operations.

“Petrobras has 12 refineries in Brazil as well as huge new oil field discoveries,” said Francisco Casulli, IPS Brazil Managing Director. “At these refineries they are modifying their processes and adding new units to process the heavy oils produced locally, while remaining in compliance with strict new environmental

requirements for processing clean fuels. IPS services and solutions are helping Petrobras meets its goals.”

Additionally, IPS will provide new integrated safety systems for all the refineries, along with Triple Modular Redundant technology, supply engineering, systems integration, systems installation, and simulation and safety control services to help Petrobras meet its strategic goal of becoming one of the five largest integrated energy companies in the world.”

“This contract is an excellent extension of the relationship that IPS has built with Petrobras over five decades,” said Ricardo Agostinelli, President of latin America region. “We stand ready to support this loyal client and work with them to meet their environmental, health and safety goals.”

Based on their new oil discoveries off the coast of Brazil, Petrobras could possibly be the largest oil and gas company in the world by 2015.

clientcloseupPetrobrasl Petroleo Brasileiro s.a. (Petrobras) is the 8th largest oil

company in the world.

l Produces more than 2.2 million BPd worldwide and will be investing $85 billion over the next 5 years to increase this production to 3.5 million BPd.

l Maintains an aggressive growth strategy in key markets

l Goes beyond oil and is leading a true “green revolution” with the usage of biodiesel and ethanol.

l cooking gas, gasoline, kerosene, asphalt and paraffin are a few of the by-products produced by Petrobras.

6 l F O C U S

enabled by IPS technology

‘‘We stand ready

to support this loyal

client and work with

them to meet their

environmental, health

and safety goals.’’— RICARDO AGOSTINELLI, PRESIDENT, LATIN AMERICA REGION

Kraton partners with IPsThe neXt tIMe you pick up a kitchen spatula or touch the handle

of a car door, think of IPS. Kraton Polymers, a global producer of copolymers or what we know as plastics, has a five-year,

$22 million services agreement with IPS for the InFusion™ enterprise control technology solution.

Without knowing it, most of us use products every day that are made with Kraton copolymers. Kraton manufactures plastics that are uniquely strong, flexible and elastic, and can be found in toothbrushes, bicycle handle grips, disposable diapers, wipes, surgical drapes, medical IV bags and toys. Kraton copolymers are also used to modify oils for use in cosmetics for skin, hair and nails.

This multi-million dollar contract between Kraton and IPS came to life thanks to the smart thinking and teamwork of sales team members in North America. Apparently, Kraton’s two primary partners for DCS systems were failing to address Kraton’s overall business issues. That’s where IPS stepped in. A team of IPS employees quickly assembled to meet with the client to understand the issues and opportunities and discuss what IPS could do to help.

Kraton’s existing systems had become obsolete. And this time, they wanted more than just another upgrade – they wanted a business partner who could provide real, long-term value.

omar halaseh, IPS Client Sales Executive, and Mike Kletti, IPS District Sales Manager, recognized immediately that Kraton had significant opportunities to improve their business processes, as well as reap more value from their investments.

“Kraton engaged IPS as the single source, long-term services and solutions partner to help them modernize their Belpre, Ohio, plant,” Halaseh said. “using our migration services and solutions, Kraton will be able to leverage their previous investments in automation technology. Our solution will mitigate risks, reduce costs, prevent manufacturing interruptions and provide continuously current technology, enabling Kraton to achieve their operational objectives.”

In addition to InFusion, the solution of integrated platforms encompass Foxboro® instrumentation and batch management software, Foxboro I/A Series distributed control system, migration solutions, and linear and non-linear advanced process control (APC) applications to reduce energy consumption.

‘‘Kraton engaged IPS as the single source, long-term services and solutions partner to help them modernize their Belpre, Ohio, plant.’’ — OMAR HALASEH, IPS CLIENT SALES ExECUTIVE

F O C U S l 7

one process promotes accuracy, efficiency

HE VENdOR dATABASE maintenance process is one, all encompassing,

global process that was established by IPS over the past year to manage supplier data. Information within the database has one consistent format that also has been adopted by Invensys Controls. ultimately, the Vendor Database application will serve as a model for other Invensys entities.

setting up a single process between the

organizations will allow Invensys to

collaborate on an Approved Supplier list

(ASl). This will help maximize the use of

preferred vendors; that offering the best

possible leverage of price incentives.

currently, two projects are underway to

advance the Vendor Database. The first is

Purchase to Payment for automatic

documentation transmittal with vendors.

Once a requisition request is approved, a

purchase order will be automatically

transmitted to the vendor. In return, a

confirmation of the order will be received

from the vendor, invoicing the order and

scheduling an automatic wire transfer of

payment after the goods or services arrive.

secondly, Invensys plc has established

a Central Payment Factory (CPF) with our

service provider Genpact for all Invensys

entities. This CPF will allow a single wire

transfer for payments due by all Invensys

entities to a given vendor.

to support this project, be sure all

vendors’ records are accurate with the

legal entity name and business address.

For more information, contact edward

racca, an IPS Process Excellence

Manager.

T

don Clark l Vice President,

Global Industry Solutions

created by IPS solutions

head of the classSPEAKING the complicated,

industry-specific language of our key client industries is no

easy task. So at IPS, that is left to the experts on the Global Industry Solutions team.

These in-house experts are well versed in the day-to-day business issues and trends that affect our client’s industries. The Sales teams in all regions can tap into this wealth of knowledge when pursuing deals.

With a team of nine managers and directors, the group led by don clark, Vice President of Global Industry Solutions (GIS), serves all of IPS. Their primary focus is to help the sales team close deals by lending their industry expertise and knowledge to the process.

Knowledge is power “Our new team possesses an in-depth

understanding of the industry, technologies and processes,” said Clark. “We put that to work by helping communicate how IPS delivers real business value for our clients.”

The GIS staff is strategically located the world over close to the Sales teams. They work closely with the Regional Marketing and Global Consulting teams to define global and regional business strategies and plans for the industry. By organizing specific industry meetings, the GIS directors keep the sales teams up to date on trends and collaborate on concepts.

The GIS staff utilizes a three-phase model: l 5 – Deals that each director is working on with

sales teamsl 7 – Deals that are

under review l 2 – Deals that are

in the closing phase.

“We do whatever it takes,” said Clark. “Our work also extends to delivering specific analyses of major deals to ensure we don’t leave any money on the table. The 5-7-2 model works on a global scale for us. It’s a good checkpoint for us no matter where you are.”

In the first half of this year, GIS team members met with the latin America Sales team to communicate the mission, relationship model and identify key opportunities by industry.

8 l F O C U S

IPS experts put industry knowledge to work

Roger Evansl Director Global

Industry Solutions (Pulp & Paper)

l GIS Americas

Victor Gopul Director, upstream Oil &

Gas, APAC

l APAC

Michael Zeng l Regional Industry

Solutions Manager

l Global Industry Solutions, Hydrocarbon Processing Industry

Paul dacruzl Vice President Power

l Global Industry Solutions

GLOBAL INDUSTRY SOLUTIONS TEAM

F O C U S l 9

hot pursuitsStrategic sales centers give IPS an edge

IN THE HIGHLy competitive industries where IPS does business, the best practices, tools and methodologies must be in place to have a chance at winning. That’s the story behind the new Strategic Sales Centers

(SSC) at IPS. The best at IPS

The SSC brings the best teams together to devise plans to consistently compete for the largest sales opportunities in the marketplace. By delivering high-impact proposals that show how IPS adds business value, the SSC positions IPS as a trusted business partner and innovator.

“The work that comes from the SSC teams represents the company’s best concepts and strategies for every deal,” said rick Burges, Director of Strategic Sales Centers. “The energy, teamwork and productivity at the SSC continues to be effective and profitable. The collaboration rooms are where some of our best ideas come to life.”

For an opportunity to reach a Strategic Sales Center, it must meet three criteria:

1. The total contract value is greater than $10 million. (opportunities are evaluated on a case-by-case basis)

2. The Client Executive champion must be engaged in the process.

3. The Client is ready to develop a deal.

Due to the confidentiality of the deals, the centers are not open to all employees and special access is required to enter. However, as projects progress, clients are invited to the SSC for presentations and meetings.

Closing the deal The SSC has plenty of white board space, comfortable seating and

an atmosphere to inspire and generate the flow of creativity. The teams are focused on the best ways to deliver innovation, quality and continuous improvements to win business for IPS.

When top sales deals are on the table, Pursuit Teams are established with clearly defined roles and responsibilities. The groups are lead by Pursuit Team leaders (PTl), who are key to SSC process.

“The PTls provide day-to-day leadership and proposal development all the way to the contract win,” Burges explained.

The Strategic Sales Center in Houston, Texas, recently closed its first deal with Valero Energy Corporation. The contract is valued at $10 million for the Foxboro I/A Series® distributed control technology and Triconex® safety and security solutions.

Strategic Sales Centers are now open in: l Houston, Texasl Crawley, UK l Singapore

John Gilmore Jr.l Director, Global

Industry Solutions, upstream Oil & Gas

l Sales/Global Industry Solutions

Martin Turk, Ph.d.l Director

l Global Industry Solutions, HPI

Robert Cookl Director, Global

Industry Solutions

Louis Meyerl Director, Global Industry

Solutions – Spec Chem & Pharma

l Sales - Global

GLOBAL INDUSTRY SOLUTIONS TEAM

The GIS staff is strategically located the world over close to the Sales teams.

business update asia pacific

10 l F O C U S

our transformation into a customer solution-centric organization is helping IPs asia Pacific to seize all the untapped opportunities and capture the growing market demand in the asia Pacific region, which represents 30 percent ($20 billion) of the global process automation spend. We are strengthening our share in verticals like Power, refinery, oil & Gas, hPI and gaining traction in new verticals such as environmental. the team’s hard work has effectively reaped a good harvest with penetration into India’s lucrative power market. We have further strengthened the IPs asia Pacific executive leadership team with the addition of technology heavyweights tony ho, Vice President, sales, IPs aP and Vijay srinivasan, Managing director, IPs India. together with the existing team, I am confident that we will lead IPs asia Pacific to higher grounds!— LAWRENCE WEE, PRESIDENT, ASIA PACIFIC

THE FIRST HALF of the year has been demanding with the implementation of strategic plans and launching the IPS business transformation across the

region. The APAC team shares the new vision to become an integrated solutions company that embraces the IPS Way and continues to provide valuable insight to help clients overcome industry and economic challenges.

Presently, clients in the Asia Pacific region are calling for more intensive technology-based solutions that will directly impact business performance. Key market drivers such as globalization, demand outpacing energy supply, rising costs in emerging markets like China and India, and rising pressure from regulations and compliance to cut carbon emissions by 20 percent by 2010, are all contributing factors to the need for more technology solutions.

The global financial crisis will to a certain extent impact Asia Pacific. We are seeing some delays in key infrastructure projects, but the market is still looking relatively strong. In challenging times like these, we need to be more nimble and innovative to find opportunities to stay close to the market and our clients.

The issue of sustainability continues to be top-of-mind for senior executives of large corporations in our region. With a strong portfolio of success stories, IPS APAC is poised to be a leading player in industrial integrated energy and carbon management.

In October and November, the IPS APAC Vision Forum has successfully inspired more than 800 clients, prospects, partners and media in Japan, China, Korea and Thailand with the message of

how IPS could truly bring a ‘Revolution in Performance’ to their business, especially in the six verticals where we focused. Many clients were impressed by the richness of solutions and applications and had a keen interest to dive deeper into the portfolio capabilities IPS offers. Recently, we have gained strong client endorsements with the launch of our Client Success Story program to showcase our wins with leading players in all six verticals. Here are some examples of the program highlights:

l IPS helped ClP Power, Hong Kong’s largest power generator, meet sustainability targets ahead of schedule.

l Rasgas, one of the world’s largest suppliers of lNG, has chosen IPS as the preferred MAC partner.

l IPS Advanced Operator Training Simulator has been implemented by BP Zhuhai, the world’s largest single-train PTA unit.

l In Australia, IPS identified significant cost savings for one of the world’s largest base metal mine for Perilya, with the potential to reap significant energy savings.

l Engaging the largest power generation group in China, China Huaneng Group (CHNG), IPS is the pioneer in powering the first digital power plant for CHNG.

l In India, Reliance Jamnager, the world’s largest single-site Greenfield refinery is once again driven by the IPS solutions portfolio.

rising to the challenge

snapshotRecent successesMulti-million contract wins:

l dung Quat Polypropylene plant project for PetroVietnam

l Project in India for shandong no. 3 electric Power construction corporation

l fuzhou power plant huaneng Power International, Inc.

l Jiangsu Guoxin Jingjiang project for Jiangsu Guoxin Jingjiang Power Generation co., ltd.

With the exception of our new unit in russia, orders growth across the european economies has been slower than expected for the first half of the year. the overall orders pipeline has been growing steadily, and we expect a strong second half performance. despite this orders weakness, the delivery organization has been able to maintain momentum in backlog conversion to drive revenue and profit. all the support teams have done a great job in addressing the cash position. our russian team is showing what can be done with very limited resources, tremendous dedication and teamwork as they aggressively grow our business. there is no doubt that we face some difficult challenges in the months ahead with the current economic climate, but I strongly believe with the total commitment of our team we can make a significant impact in the second half of the year. the recent contract success for more than $8 million with sonatrach in algeria shows what we can do when we get the right team focused on winning business for IPs.— PHIL CLARk, SR. VICE PRESIDENT GLObAL SALES & MARkETING/INTERIM PRESIDENT, EURA

business update EURA

F O C U S l 11

THE EURA region is experiencing significant change as it works to align resources to business

needs. Still, several key areas are showing encouraging progress and advancing the business.

After many months of pursuit, IPS France has won a key contract with Sonatrach. located in central Algeria, this project is an upgrade to help Sonatrach meet their export commitments to key European markets by increasing the production capacity and the reliability of the installation. The project scope is a complete turnkey system: M&I, SCADA System (RTu), Photovoltaic System, pylons and telecommunications.

Also, more upgrades are in store for BP. The company recently chose the Triconex® solution for the safety system upgrade at the Kinneil terminal. Kinneil is a new client site for IPS and an excellent BP reference. It is the major receiving terminal for Forties North Sea oil. This is an important contract for IPS, as 40 percent of all

uK oil production flows through Kinneil. The team explained the benefits of a single source project and that IPS had the solution to deliver. The project is valued at approximately $1.5 million for the first phase with a second phase scheduled for 2011.

In addition, a significant M&I order from NAK Azot, a subsidiary of Eurochem, Russia’s largest manufacturer of mineral fertilizers, was recently secured. The main automation order, which included a DCS and Instrumentation for this site was lost to Yokogawa in 2005. As the client planned for the expansion of their Karbamid-3 unit, they needed a significant amount of additional M&I equipment.

The IPS team prepared the proposal covering the complete project scope and the proposal was deemed to be the most complete. Delivery times were critical for the client, so the team defined an optimal solution with both the factory and a third party partner to offer schedules that surpassed the client’s expectations.

Building for growth

snapshotRecent successesl enI s.P.a. leader Project l heineken, the netherlands l IPs spain, repsol Puertollano site migration

The EURA region comprises Europe,

Russia and portions of Africa.

business update latin america

12 l F O C U S

It is a pleasure to share with you some of the relevant events during the first half of this fiscal year. our latin american team worked very hard to embrace the IPs transformation, and the results were more than expected. We have largely surpassed our orders targets for the first half of the year, with an increase of 149 percent over last year. and the latin america team is on track to continue this success over the rest of the year. the most significant contract win is Petrobras, and it is one of the largest wins for latin america. Petrobras is one of the world’s largest companies, and based on oil discoveries off the coast of Brazil it may become the world’s largest oil and gas company in 2015. We are set to maintain a long-term relationship with Petrobras, as they become an increasingly important industry player. the latin america team has earned many successful wins and these represent our consistent service to clients over the years. — RICARDO AGOSTINELLI, PRESIDENT, LATIN AMERICA

latin America is having a successful first half of year due to the team’s hard work and determination to win business for IPS. The latin America region has numerous areas that are rich in oil and gas, mining and forest industries, which drives the team to constantly evaluate and search for ways to expand business opportunities.

IPs Brazil had another large win with Aracruz, the world’s largest producer of bleached eucalyptus pulp, which is used to manufacture fine printing, writing, tissue and specialty papers. The contract employs the IPS team to deliver services and solutions to help modernize the whole existing Aracruz’s Guaiba mill and expand their Guaíba production facility, located in Rio Grande do Sul in Brazil. IPS will install and implement the Foxboro® I/A Series distributed control system, as well as provide configuration, installation, commissioning and start-up support, operator and maintenance training, and Avantis® asset management implementation services to help Aracruz achieve its strategic goal of supplying 25 percent of the hardwood pulp to the global market by 2015. In addition, IPS Brazil also received an I/A Series contract to automate bleaching lines for Aracruz.

PeMeX / salamanca refinery awarded IPS Mexico an important contract to automate the H-Oil unit. The importance of this order is that it has opened the door to work with PEMEX on new

technologies and they have chosen our InFusion™ based automation solution.

Petrobras (see related story on page 6)

Petrobras signed one of the largest agreements in the history of IPS Brazil, by approving two contracts with a combined value of close to the yearly budget of our Brazil operation. under the terms of this contract, IPS will implement Triconex™ safety and critical controls and Avantis asset management technology to upgrade and modernize many of Petrobras refineries throughout Brazil. Along with the triple Modular Redundant technologies, IPS will also supply engineering, systems integration, systems installation, and simulation and safety control services to help Petrobras meet its strategic goal of becoming one of the five largest integrated energy companies in the world. In addition, IPS Brazil won an important Real time Optimization (RTO) project with Petrobras REPlAN. This is the largest Petrobras refinery, so it will bring high visability to our RTO Solution to the market.

In October, IPS sucessfully started the Quattor (ex PQU) turbo Machinery control project for the ethylene plant. This is a remarkable milestone for IPS Brazil that completes the 10th successful TMC project in Brazil with Triconex support. Today, Brazil has a total of 15 turbo machine retrofit projects completed and operating on Triconex.

orders increase in 2008

snapshotRecent successesl Maire tecnimont Group for endesa chilel aracruz celulose, s.a. l Petrobrasl Pemex/ salamanca refinery l PdVsa refinería el Palito

business update MEA

F O C U S l 13

the Middle east and africa experienced excellent orders intake during the first half of the year. We had a huge increase of 175 percent in orders over last year. the Manifa field development project and the dammam sec orders are two of several important orders booked in the second quarter. Both are significant due to their size and strategic positioning for IPs to win more mega projects across the region. service revenue also was excellent in the first half, which helped improve gross margin despite the strong cost inflation pressures in the region. the Middle east and africa enters the second half of the year with a healthy orders backlog and a strong orders funnel. With client satisfaction continuously on the rise and the efficiency and quality of delivery improving, things are working well.

— NAbIL kASSEM, PRESIDENT, MEA

ahead of schedule

snapshotRecent successesl saBIc – saudi Basic Industries corporation,

Petrokemya olefins II (esd & tMc)l rc (royal commission of saudi arabia) Jubail

Methane/ethane Pipeline Projectl Qatar engineering & construction co.,

QatarGas common Voc Project Phasel tecnicas reunidas, ManIfa coGen contract

Stellar results in the Middle East and Africa are the result of the incredible effort by the MEA team. Pursuit leaders, sales executives, delivery, supply chain, finance and contracts teams all worked together to meet and significantly beat the annual operating plan.

Petrochemical Industries Company (PIC) in Kuwait

That’s another three years – Petrochemical Industries Company has renewed with IPS MEA for full resident engineering support. After successfully communicating and explaining the business value to the client, PIC accepted the renewal proposal with an expanded scope of work and improved pricing. The commitment of Sukdeb Chatterjee and his Kuwait delivery team, and the consistent high level of service they provided to PIC over the past three years were a major contributor to closing the deal.

nabil Kassem, President of MEA, added, “This is a great example of how we can bring the Revolution in Performance to our clients. When our people earn the trust of the clients and prove the value that IPS brings to them, the clients reciprocate by translating that trust into more business for IPS.”

SABIC – Saudi Basic Industries Corp., Petrokemya Olefins II (ESd & TMC)salem al Khaldi booked a huge upgrade and revamp project comprising an ESD, TMC and VMS system for Petrokemya, one of the 19 affiliates of SABIC – Saudi Basic Industries Corporation. Petrokemya operates 10 plants and Olefins II is the largest. Petrokemya produces ethylene, propylene, butadiene and benzene. IPS is acting

as the Main Automation Contractor (MAC), subcontracting to GE Bentley Nevada and Honeywell. This is the largest project for IPS with SABIC and it will be executed in the new IPS facility in Saudi Arabia. Delivery will begin in February 2009.

The excellent work and co-operation of the Sales and Delivery organizations was instrumental to win this single-source order for IPS. tecnicas reunidas, ManIfa coGen contract IPS booked the CoGen order received from Tecnicas Reunidas for the Aramco Manifa Project in Saudi Arabia. This is the third order received for work on the mega project, which is possibly the largest capital project ever undertaken by Saudi Aramco. The work on Manifa was secured after Aramco pre-selected IPS as the Process Control Supplier for the whole project after a successful pursuit led by Arif youssef and assisted by Mahmoud Tulbah and countless contributors from IPS in Saudi, Middle East and worldwide.

RC (Royal Commission of Saudi Arabia) Jubail Methane/Ethane Pipeline Project

IPS has won its first project with the Royal Commission of Saudi Arabia, currently a stronghold of competitors. The client’s first interest was in the Triconex® system, but the sales team successfully sold the client DCS, RTu and field instrumentation, as well as an outsourced leak detection system. This is phase one of the Jubail-II feedstock pipeline infrastructure project, so there is a good chance that IPS will have the opportunity to repeat this success on future phases.

The MEA region comprises the Middle

East and portions of Africa.

the north america team is undergoing an impressive turnaround, and the success has been noted at IPs and throughout Invensys. We had orders growth of 24.5 percent over last year and a solid first half overall. our results are a clear indication that the north america team is quick to embrace change and focus on adding value to clients’ business operations. as many of you know, the IPs teams in houston and Beaumont, texas, experienced disruptions due to hurricanes Ike and Gustav in september. fortunately, no one in the IPs family was injured. You can read more in this publication on how we assembled a response team for our exxonMobil client that experienced a significant amount of damage to their facility. I’m personally excited about the rest of this fiscal year. We are getting traction and will make every effort to carry that momentum forward. — STEVE bLAIR, PRESIDENT, NORTH AMERICA

IN NORTH AMERICA, we have changed to single sales, delivery and consulting teams that are easier for our clients because the responsibilities are clearly defined. We have

also put senior managers on the ground within three major regions of North America to work directly with clients. This has resulted in healthier relationships between IPS and our clients. Seemingly small things, like dedicating an account person or a team to work on complex proposals, make a big difference in how clients interact with us and in our success in the market.

We’ve had a few recent successes to highlight:l In August, we were awarded a five-year,

more-than-$20 million contract to provide comprehensive industrial automation services and solutions to Kraton Polymers. We will begin with automation solutions for Belpre, Ohio, site modernization.

l In January, we celebrated the flawless startup of a comprehensive enterprise control system at the ExxonMobil Port Allen lubricants Plant in louisiana. The InFusionTM-based system provides functional integration from the plant’s SAP enterprise resource planning system (inventory, order/shipments, etc.), through batch process control, and on to final packaging and shipping operations. Although originally implemented to address an end of life issue with the existing control system, the final solution provided the added benefit of facilitating production flexibility and improved work flow. In addition, the system’s scalability has enabled the InFusion-based system to become a template for other ExxonMobil lubricant facilities. We were recently awarded a

new contract for ExxonMobil Beaumont lubes as the next step in this adoption across their business. Thanks to the delivery team, we have another great win for IPS.

We had a strong presence at the annual ISA Expo in Houston as well as the Texas A&M Turbomachinery symposium. At ISA, IPS hosted two booths with one featuring our DCS technology and the other promoting our M&I solutions, we also actively participated in standards booths around digital fieldbus technology. Overall, we were in four different booths and came away with some excellent opportunities. Because we are celebrating Foxboro’s 100th Anniversary, we brought in original instrumentation spanning the last century to showcase in the booth. Foxboro’s 100 years of innovation leads the way to a Revolution in Performance.

The 2008 North American Client Conference was our largest event this year, attracting more than 600 clients, IPS partners, employees and guest speakers. During the four-day event, conference participants chose from more than 190 presentations, panels, roundtable discussions and training offerings that spanned our entire portfolio. The theme this year was “Imagine, Interact, Implement” and the event featured activities that fueled clients’ imagination, provided them plenty of opportunities to network and interact, and ultimately, gave them a head start towards implementing performance improvements in their businesses. To download a copy of presentations from the event, visit Conference Proceedings on the sales portal.

business update north america

on the right track

14 l F O C U S

snapshotRecent successesl santee cooper: Unit 2 BMs & Upgradel Bechtel-shell scottford Upgrader tank farm consolidationl sinclair Wyoming: service contract

l exxonMobil: Beaumont chemicall exxonMobil: Beaumont lubesl MIsc Berhad: tenega fleet cts Upgrade

successstory

Way to Go! Check out five high-impact client stories below. These success stories each carry an economic value of more than $20 million a year in savings to the client. Now that’s adding real value to the bottom line.

1 32 54duke Power upgrades Oconee Nuclear Station turbine to digital controll Duke Power is

committed to plant safety, security, and keeping costs among the lowest of all u.S. nuclear plants. Duke uses analog turbine controls, and when one component fails, the entire system must be shut down, adding risk and costing hundreds of thousands of dollars a day in downtime. After evaluating alternative solutions, Duke selected IPS’ turbomachinery controls to meet all their technology specifications along with the expertise to simplify and reduce costs. By implementing IPS’ fault-tolerant digital control system, Duke has virtually eliminated one of the top sources of system trips in its turbines, contributing to safe, reliable plant operations.

United dairy improves custody transfer accuracy and reduces costs with IPS Coriolis measurement systeml united Dairy, Inc., one of

the largest family-owned dairies in the united States is consistently improving its operations to provide customers with quality products from the farm to the fridge. IPS developed a custody transfer solution that requires little or no maintenance, is certified nationally for accurate fiscal metering of milk, reduces costs, and improves material accountability. using IPS’ custody transfer solution provided a reliable, indisputable measurement of the milk received at the dairy, resulting in substantial savings and paying for the iinvestment within 60 days. Additional revenue was saved by not overpaying for milk transfer, saving thousands of dollars previously spent on maintaining scales.

America’s third-largest public power utility quells nuisance alarmsl To reduce alarm floods

that were increasing with frequency, Arizona’s Salt River Project (SRP) implemented IPS alarm management solution at two of its generating stations, Navajo and Santan. In one 18-hour period, operators were confronted with 5,000 alarms, each requiring intervention and designated a top priority. using IPS’ solution, the Santan station dramatically reduced the frequency of alarms. Plant startup previously took two people up to four hours; now takes one operator less than two hours. At the Navajo station, results were even more dramatic. The alarm management team reduced the frequency of alarms by 44 percent.

Cascades Tissue Group achieves quality, cost, and operating efficiencies with IPS automationl Cascades Tissue Group, a

leading supplier of tissue paper products for more than 100 years, recently experienced growing concern that outdated controls at its Eau Claire mill would jeopardize its position in the increasingly competitive global paper industry. utilizing IPS I/A Series® process control system, Cascades Tissues Group reduced standard deviation of both basis weight and moisture that resulted in more uptime, greater overall capacity utilization, and lower maintenance costs. System maintainability and reliability also improve dramatically. Consolidated controls reduced the overall number of system components, with many of the components deployed equipped with self-diagnostics.

PdA-based planning and scheduling solution cuts costs and paperwork for Southern Nevada Water Systeml Southern Nevada Water

System (SNWS), a department of the Southern Nevada Water Authority, manages treatment of up to 900 million gallons of water every day. Maintaining a system of this magnitude is an enormous undertaking, with the primary objective to reduce paperwork. SNWS took the first step toward automated maintenance planning and scheduling installing IPS Avantis.PRO. using IPS’ Avantis planning and scheduling client for personal data assistants (PDAs), SNWS can plan and schedule field maintenance, and communicate schedules to the technicians on a timely basis. SNWS is expecting to save $50,000 for the first year in work order processing and administrative costs.

F O C U S l 15

High 5

the last word

IPSToday is coming your wayWatch your email for details on the launch of the new intranet site, IPS Today – the site designed with yOU in mind!

“We were really impressed by the breadth of applications featured during the IPS Vision Forum. With increasing financial challenges in the areas of the 3 ‘E’s - Economics, Energy and Environment, IPS has a new, confident direction that the company will continue to evolve, grow and dominate the market in technological innovation.”— Man Jun, D IrEctor, chIna chEMIcal nEWS, octobEr 2008

“IPS understood our specific needs, and by being able to include instrumentation and advanced process control, along with the core distributed control system, they were, in our judgment, the lowest risk, single-source supplier of an automation solution that should be completely manageable and scalable. We feel that the entire IPS team showed strength and capability in dealing with our timing and

budgetary needs, and we look forward to working with them in the years to come as Kraton pursues continued improvements to our operating efficiencies.”— KEn Stach, V IcE PrESIDEnt oF oPEratIonS, Kraton

“It Is apparent that [IPS] is reinventing itself with a clearly defined strategy. the IPS view of the major challenges faced by industry was summarized by Paulett Eberhart, president and cEo of IPS:

‘Industrial business is now a real-time business, and the only way to effectively perform in a real-time business is in real time.’ the organizational changes are designed help clients achieve this

objective.”— bIll lyDon, autoMatIon.coM, octobEr 2008

“It Is hard to Imagine a company whose roots go back 100 years to look and feel like a startup, but that is exactly what [IPS] is looking like these days... the old days of Invensys just selling products to end users are gone.”— GrEG halE, IntEch, SEPtEMbEr 2008

©2008 Invensys Systems, Inc.