Apply Best Practice

The

360 Solution

Apply offers a full spectrum of competencies, products and services within our business areas. By coordinating and integrating processes and resources, and by building on our core capabilities, we deliver complete and seamless EPCI- and MMOsolutions to our customers – both offshore and onshore. Apply has an annual

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turnover of some 3 billion NOK and approximately 2000 permanent employees, of which more than 900 are working within engineering and project management. We are well positioned for further expansion. The Apply companies have shown a growth rate of 40% per year from 2005 - 2008 – with satisfactory margins.

MMO & EPCI > Complete turnkey contract capabilities, including engineering, procurement, construction and installation – covering both MMO and EPCI contracts.

Living Quarters & Assembly > State of the art living quarters - both in steel and aluminium. Available as standard modules or as made-to-order. World wide delivery.

Systems & Products > Delivery of state of the art control systems and system packages related to drilling, well intervention and subsea, as well as being a service provider within these areas.

Subsea > Design and fabrication of products and systems for subsea pipelines.

Solutions & Services > Complete technical solutions covering piping, HVAC, telecom and electro services for buildings & plants, and the maritime industry.

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APPLY BEST PRACTICE

APPLY BEST PRACTICE The Apply companies have unified in a simple but challenging strategy: Apply Best Practice. In these words lies our commitment to continually seek improvement in our work processes – in all areas. Demanding customers and owners are effective catalysts for this strategy. We have established professional forums for cooperation across the various business areas in Apply, in order to strengthen our processes. This applies to HSE as well as HR, procurement, marketing, IT and finance. The idea is to draw on the best expertise available within – as well as outside – the group, and to implement improvements. By forming Apply, we have utilised the opportunity to strengthen our project completion capabilities, and emerge today as a seamless total supplier within both maintenance and modifications.

> “By forming Apply, we have utilised the opportunity to strengthen our project completion capabilities, and emerge today as a seamless total supplier to the oil and gas industry.”

Resource management across the group assures the customer that necessary priorities are made. This approach was recently honoured by Statoil awarding the new M&M framework agreements for Kvitebjørn and Brage to Apply Sørco. We have developed great teamwork between Apply Leirvik and Apply Leirvik Emtunga, within the business area LQ & Assembly, wherein the team players fulfil each other within material expertise (aluminium and steel), and constructional engineering (integrated and modular) – so that we now can offer modularised aluminium solutions to the global market. Surely, this teamwork is a good example of implementation of Best Practice. Apply Oil & Gas has long drawn on their expertise within automation and control systems in order to develop product solutions for the oil and gas industry, all over the world. The examples of Best Practice here are numerous, and we sell the product solutions to oil service companies for use both on the NCS and abroad. In Apply TB, the development of multidisciplinary expertise, and execution of multidisciplinary turnkey contracts have been the cornerstones in the company’s evolvement. This reduces subcontractor interfaces for the customer, and improves coordination between the disciplines during implementation of the project. In this way our customers can pocket considerable savings when they enter into turnkey contracts. Best Practice! In subsea, our colleagues in Nemo have developed a range of specialised hi-technology products which truly deserve the title Best Practice. Just think of the “hot-tap” solution on Ormen Lange, where the connection of a gas-bearing pipeline was made possible at a depth of 800 meters. We are eager to draw on the expertise and experience of all our customers, suppliers and co-workers in our work to continually improve our products and services.

Per Bjørn Habbestad CEO Apply 4

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ABOuT APPLY

Apply > Revenue & EBITDA Margin MNOK 10 %

3500

9% 3000

2500

2000

1500

S&P S&S

8%

SubSea

7%

LQ

6%

MMO

5%

EBITDA Margin

4% 3%

1000

2% 500

1% 0%

0 2006

2007

2008

2009

APPLY > key figures and financial development Over the past four years, the Apply companies have experienced significant revenue growth and maintained solid EBITDA margins. The current financial performance represents a solid base for further growth and financial development. With an all time high 2008 turnover of 3,1 billion NOK Apply’s track record proves the potential for a recovery upside from the market driven reduction in 2009 revenue and margin. applY summarY

Apply is supported by strong owners and banks, representing solid financial conditions for further growth. Apply’s financial performance in the upcoming three year period is expected to be driven by a market increase, as well as an increase in Apply’s relative market share. The synergy of a joint market approach, as well as the cost effectivity of large-scale economising, is expected to contribute to a positive margin development. The diversification within Apply’s business areas represents a combination of high synergy potential in Apply sales and deliveries, as well as a balanced risk exposure to the various markets and segments.

> business areas: • MMO & EPCI • Living Quarters & Assembly • Systems & Products • Subsea • Solutions & Services > turnover 2009: 2700 MNOK > ebitda margin 2009: 8,2% > no. of employees 2010: 2000

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BuSINESS AREA

Complete turnkey contract capabilities, including engineering, procurement, construction and installation – covering both MMO and EPCI contracts.

Our best practice perfOrmance upgrade activities will: • Improve safety and technical integrity of production facilities • Reduce environmental impact factors • Develop topside solutions for field tie-ins to existing facilities • Optimise process facilities • Enhance production capacity • upgrade safety, automation and process control systems • Improve operational flexibility • Improve availability and regularity of facilities and systems • upgrade drilling facilities • Develop tail-end production scenario

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Operations Support Services 13 %

Engineering & Studies 20 %

M&M Contracts / Frame Contracts 33 %

EPCI Projects / Topside Modifications 34 %

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MMO & APPLY SØRCO > represents the Centre of Excellence for Apply’s business area “MMO & EPCI”.

BuSINESS AREA

facts > group companies: • Apply Sørco AS • Apply Sørco Installasjon AS • Apply Capnor AS • Apply Poland • Apply Consultants Ltd. > turnover 2010e: 1050 MNOK > no. of employees: 600 > main office location: Stavanger, Norway > Oil & gas experience: More than 30 years

applY capnOr apply capnor is a leading provider of 3d laser scanning and as-built documentation, and represents state of the art technology solutions. we provide our services to the oil & gas industry and civil engineering companies.

& EPCI Apply Sørco is focusing its activities on upgrading performance of oil and gas facilities within the area of Maintenance, Modifications, Operations support and EPCI projects. For more than 30 years, Apply Sørco has delivered services to fields and installations operated by upstream oil and gas companies in Norway. The services include complete turnkey contract responsibilities, and comprise multidisciplinary Engineering, Procurement, Construction and offshore Installation capabilities. It is our mission to improve value and asset performance of oil and gas facilities, based on best practice developed over more than 30 years of operation within the oil and gas industry.

Our services can be implemented at all stages of a project, from tender phase to installation phase and optimised through our Integrated Operations solutions. Apply Capnor supplies best practice solutions to clients and their projects by supporting their teams in utilising the benefits of laser scanning, and in optimising their own workflows, offshore and onshore.

implementatiOn Of best practice will cOntribute tO: • Improving HSE by reducing the need for engineers on-site, and optimising 3D models in engineering phases in order to eliminate safety risks in planning, design and installation phases • Assisting our clients in optimising solutions, by identifying concepts that improve flexibility and reduce operational costs at an early stage • Flexible design solutions and reduced clash potentials • Maintaining prime focus on increasing efficiency by optimising resources and workflows

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BuSINESS AREA

State of the art living quarters – both in steel and aluminium. Available as standard modules or as made-to-order. World wide delivery.

Living Quarters

Our reputatiOn is built On: • • • •

uncompromised quality Light weight aluminium solutions Durable solutions One-stop-shop solutions, including: » After Sales service & Maintenance » An efficient and flexible project organisation

after sales and applY leirviK reancO apply leirvik will increase its focus within after sales, and organise all its after sales activities in a new business unit in 2011, offering lQ after sales, spares, and maintenance and modifications.

Apply Leirvik Reanco is an experienced player in the field of upgrading offshore living quarters, specialising in Offshore and Marine floorings including raised access floor and accommodation systems. Apply Leirvik Reanco has a proven track record based on: • 35 years of experience on the Norwegian shelf • Turnkey project planning and delivery • Cost-effective and smart solutions • Multi-discipline skilled workers • Good service and follow-up • Competitive prices

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APPLY LEIRVIK > represents the Centre of Excellence for Apply’s business area “Living Quarters & Assembly”.

BuSINESS AREA

facts

rs & Assembly

> group companies: • Apply Leirvik AS • Apply Leirvik Emtunga AS • Apply Leirvik Reanco AS > > > > >

turnover 2010e: 700 MNOK no. of employees: 330 Yard capacity: 120 000 m2 main location: Stord, Norway Oil & gas experience: More than 35 years

applY leirviK emtunga apply leirvik emtunga is the leading world supplier of advanced steel modular facilities to the offshore and marine industry.

Apply Leirvik is one of the leading EPC Contractors for major offshore Living Quarters (LQ). We have specialised in building, assembling and installing accommodation and utility modules for offshore installations since 1973, and have developed best practice methods for fabrication and assembly of aluminium LQs. In recent years we have also constructed and assembled customer-fitted process modules. Apply Leirvik’s total package covers all work from client’s functional requirements to sail-away. This includes: Project Management, engineering, procurement, construction, assembly and testing (EPCM).

With over 30 years of experience, Apply Leirvik Emtunga produces steel Living Quarters and service modules of all types and sizes for fixed platforms, jack-up rigs, accommodation vessels and FPSOs, according to either the Emtunga standard concept or to the client’s own specifications. We cover all engineering and sourcing disciplines necessary for a successful project execution. Our extensive and long-term modular know-how provides our customers with: • • • •

Short time to market High delivery precision Flexible solutions Structurally strong and low weight design • Competitively priced products

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BuSINESS AREA

facts > group companies: • Apply Oil & Gas AS • Apply Oil & Gas Project Services AS > > > >

turnover 2010e: 450 MNOK no. of employees: 340 Yard capacity: 10 000 m2 main location: Stavanger, Norway > Oil & gas experience: More than 30 years

we prOmOte best practice tO Our custOmers tHrOugH: • using the best suitable technology • Being a frontrunner in new environmentally friendly solutions (both working and external environments) • Delivering solutions with lower operating costs through automation • Extensive experience • Flexibility • Development of tailor-made systems • Superior product range • Highly dedicated and motivated employees

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Photo: Shutterstock

Delivery of state of the art control systems and system packages related to drilling, well intervention and subsea, as well as being a service provider within these areas.

Systems & Products APPLY OIL & GAS > represents the Centre of Excellence for Apply’s business area “Systems & Products”. Apply Oil & Gas is a leading contractor and supplier for projects, products & services for Drilling Rigs, Offshore Vessels, Service Companies and Production Facilities offshore and onshore.

apply Oil & gas covers the whole process from design, via fabrication, assembly and installation to testing and start-up within the following areas:

• Mechanical system packages and container based solutions

• State of the art control system and system packages related to drilling, well intervention and subsea, as well as being a service provider

• Explosion-proof solutions

• Automation • Electrical • Safety systems • Telecommunications • HVAC (Heat, Ventilation and Air Conditioning)

BuSINESS AREA

Subsea NEMO ENGINEERING > represents the Centre of Excellence for Apply’s business area “Subsea”.

> turnover 2010e: 200 MNOK > no. of employees: 130 > main office location: Oslo, Norway > Oil & gas experience: More than 20 years

Our products and services are delivered as an integrated part of a subsea system package, or as a stand-alone delivery. We offer continuous support during design, manufacturing, testing and installation of the products. Suitable tools for installation and operation of the products are designed and manufactured as required.

Haatech is specialised in the fabrication of subsea products for all the major companies in the Norwegian subsea industry, by combining highly qualified and skilled staff with new and modern production facilities.

facts > group company: • Nemo Engineering AS

Nemo Engineering is a specialist company within the design and delivery of subsea products and structures for transportation of oil and gas. This involves all phases of a development, from early phase field studies, through concept and detail design and finally, fabrication, testing and delivery.

HAATECH >

Design and delivery of small and medium sized subsea structures, as part of a subsea system package, or as a stand-alone delivery.

Our services include: • • • •

Structures and Systems Subsea System Components Special Solutions Pipeline Engineering

Our competitive edge stems from:

Haatech, in cooperation with Nemo, represent an interesting combination of product development and fabrication, providing excellent hands-on experience, and the ability to follow a product from start to finish. We aim to be the ultimate partner for provision of all complex and highly challenging subsea tools and equipment for a wide variety of projects, all over the world.

• Compact and robust design • Cost effective solutions minimising installation costs • Independent tie-in systems • A unique combination of product development skills and fabrication facilities • Hands-on experience • Speed and efficiency

After Nemo’s purchase of the company Land & Marine Technology Systems (LMTS) based in Perth, Western Australia, LMTS has changed its name to Nemo Offshore Pty Ltd. The acquisition is part of a strategic plan to increase Nemo’s broader international presence and penetration into the global subsea market.

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business area

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BuSINESS AREA

Solutions & Services

Complete technical solutions covering piping, HVAC, telecom and electro services for buildings & plants, and the maritime industry.

facts > group companies: • Apply TB AS > turnover 2010e: 570 MNOK > no. of employees: 580 > main location: Stavanger, Norway > industry experience: More than 100 years

apply tb offers solutions within a broad range of services: • projects: Specialised and multidisciplinary projects for general industry, the public sector, the private sector, the corporate market, shipping and the energy industry

APPLY TB > represents the Centre of Excellence for Apply’s business area “Solutions & Services”.

• services: Specialised and multidisciplinary assignments and framework agreements for the corporate and private markets, industry, shipping and the energy industry • technical services: Commissioning, start-up, service and internal monitoring of technical systems, as well as implementation of energy analyses

Apply TB is a leading supplier of piping, HVAC, telecom and electrical services (Hi and Lo voltages) for facilities, plants and the maritime industry.

• facility management: Comprehensive concepts for facility management – from operation of technical systems to complete facility management

We have expertise within all the technical disciplines, and represent one of the few players who are able to deliver complete technical solutions, within piping, HVAC, telecom and electrical services.

• telecom: Tasks requiring specialist expertise in fibre-optic and telecommunications technology

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HSE VISION

PEOPLE FIRST HSE VISION & STRATEGY

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HSE VISION

HSE is a key element in the culture of our corporation, and a prerequisite for our commercial success. We aspire to demonstrate a clear commitment in the way we operate and undertake those obligations wich are necessary to be in the forefront of this area of our industry. We have developed an HSE vision in which we put “People First”. For us, this means that Apply shall be a healthy workplace - without accidents or damage to people, the environment, or property. We sincerely believe that every accident can be prevented, and that our working environment shall be characterised by commitment and acknowledgement. Apply has a universal overriding HSE policy and procedures, as well as ambitious goals and follow-up routines. Arenas for exchanging experiences and learning have been established in this area too, so that we can draw on networks within the various companies’ expertise and establish Best Practice for the corporation as a whole. We have a strong focus on integrating an HSE-mindset into our business, and to ensure that learning and continual improvement become a natural part of our corporative culture.

> Our approach is that all accidents and injuries can be prevented. This is an ambitious goal, but working towards achieving zero incidents will still, always be right.

In addition to establishing technical barriers for the prevention of accidents, Apply is also concentrating strongly on skills and expertise development and awareness strategies for our personnel. This is implemented both through training in the various business units and also through corporative strategies, such as the publication of the Personal HSE Manual, and the execution of an HSE campaign for all our employees. Our approach is that all accidents and injuries can be prevented. This is an ambitious goal, but working towards achieving zero incidents will still, always be right. It’s all about making our workplaces as safe as possible, in a working environment where we all can thrive and evolve.

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www.apply.no