1

PEOPLE. PERFORMANCE. SOLUTIONS.

Austin’s Culture

2

• Founded in 1918

• 100% Employee-Owned

• 7,500 Austin Industries Employee-Owners

• 5,500 Austin Industrial Employee-Owners

• $2 billion in annual sales

• #41 ENR

• Diversified

₋ Commercial

₋ Bridge & Road

₋ Industrial

• No Debt

3

Austin Industries – Our Parent Company

Company Overview

• Leader in Safety

• Every Employee is an Owner

• One of the largest maintenance contractors in the U.S.

• More than 120 active maintenance and capital construction sites

• Self perform practically all of our work

4

Austin Industrial

Maintenance

• Millwright/Mechanic

• Welder/Pipefitter

• Boilermaker

• Equipment Operator/Rigging

• Electrical/Instrumentation

• Fire Sprinkler Systems

• Vibration Monitoring

• Fiberglass

Construction/Small Cap

• Piping

• Structural Steel erection

• Equipment Setting, Assembly, & Alignment

• Electrical/Instrumentation

• Civil

• Project Controls

• Subcontract Management

Specialty

• Scaffold

• Insulation

• Paint/Coatings

• Asbestos Abatement

• Lead Abatement

• CUI

• Fiberglass

• Steam Tracing

5

Plant Services

•Facilities

•Warehouse

•Logistics Support

•Janitorial

•Grounds

•HVAC

•Tool Room

•Operations Support

Heat Exchanger

•Bundle Insertion/ Extraction

•Rigging

•Tube Replacement

•Torqueing

•Tube Plugging

•Bundle Repair

•Insulation Blanket

Turnarounds

•Boilermaker

•Exchanger Services

•Scaffold/Insulation

•Paint

•Welder/Pipefitter

•Specialty Welder

•Planning/Scheduling

•Equipment Operator/Rigging

Material Handling

•Rail Loading

•Tank/Bulk Truck Loading

•Barge Loading

•Switching

•Packaging

•Drumming

Austin Capabilities

6

• Albemarle

• Advance Aromatics

• BASF

• Baker Petrolite

• Bayer

• Bridgestone

• Clariant

• DSM

• Dixie Chemical

• Duke Energy

• ExxonMobil

• International Paper

• Lanxess

• Linde/BOC

• LCY Elastomers

• Lubrizol

• LyondellBasell

• Marathon

• Miliken

• Motiva

• Navajo Refining

• Noltex

• PCS

• Phillips 66

• Prayon

• Shintech

• Syngenta/GB Bio

• Targa

• Timkin

• TOTAL

Customer Base

Core Safety Values “All Accidents are Preventable”

Austin Driving to Zero

7

Zero is achieved through the following

philosophies and best practices:

• Safety, Health and Environmental Protection Takes Precedence Over All Else

• Management Engagement and Visibility – Boots on the Ground

• Zero in the Hearts and Minds of the Individual

• Safety Culture Survey

• Austin Risk Behavior Assessments

• Safe Work Policies, Procedures and Practice Conformance at All Times

• Employee-owner Empowerment, Engagement And Participation

• Targeted English Training For Spanish Speaking Employee Owners

8

0.76

0.56

0.520.47 0.46

0.22

0.32

0.23

0.35

0.26

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

TRIR

Wo

rk H

ou

rs (

MM

's)

Work Hours (MM's) TRIR

Safety Performance

9

Managing Values and Culture

• Management Visibility and Engagement -

Leading by example

• Risk Behavior Safety Assessment and key

follow ups

• Austin Safety Culture Survey and key follow

ups

• On-Boarding process

• Employee-Owner empowerment expectations

• English language comprehension assessment

• 360 Supervisor Review and Dialogs

• Safety Meetings

• Expectation Meetings

• Employee-Owner Dialog Meetings

• Bilingual JHA/JSC’s

• Audits/Listening Tours

• Mentoring Process

10

Austin Quality Control

• ISO-Based QC Program – All Disciplines

• Project Specific Quality Execution Plan

− Tailored to fit service offering

• Alignment with Project Specifications

• Inspection & Test Plan Process

• Supervisor and Craft Quality Training

− Proprietary Weld Quality Program

− Includes Welders, Supervisors, Pipefitters &

Inspectors

• Non-conformance process

• Corporate Weld Acceptance rate – 97.8% (2013

average)

• Corporate X-Ray acceptance rate – 97.9% (2013

average)

• A Boiler Assembly

• PP Pressure Piping

• U Pressure Vessel

• R Repair & Alteration- National Bd.

Certification

11

Welding Quality

2013 2014 YTD

Butt Welds Made 29,594 21,822

Welds Radiographed 4,582 4,703

Welds Rejected 96 89

Weld Acceptance Rate 97.9% 98.11%

• Establish site steering team & establish benchmarks

• Evaluate effectiveness of current work flow process

• Develop KPIs & targets – mutually agreed

• Develop site-specific strategic plans

• Implement Opportunity for Improvement process

• Review training requirements

• Review indirect staff requirements

12

Maintenance Workflow Process

Work

Selection

Receive

WorkPlanning Scheduling Execution

Scaffolding

• Piping

• Equipment

• Tanks

• Towers

• Boiler Internals & Externals

• Ductwork Internals & Externals

Insulation

• Piping, Towers & Equipment

• Hot and Cold service

• Reusable Blankets

• Fiberglass Panel Systems

• Fireproofing

• Refractory

• Asbestos Abatement

• Steam Tracing

Painting/Coatings

• Piping

• Equipment

• Tank coating and lining

• Sandblasting

• Lead Abatement

• Environmental Compliance

• Epoxy Fireproofing (Chartek)

13

Scaffold Efficiency

• Labor Analysis

• Material Utilization Analysis

• Scaffold Location Analysis

• Scaffold Movement KPI’s

• Historical Data

• Reduced Material and Labor Costs

• Scaffold Elimination

Heat Loss/CUI

• Thermographic Survey Process

• Identify areas of CUI & Heat Loss

• Establish Asset Protection Program

• Quantify potential Energy Savings

• Certified Thermographers

Paint Program

• Paint Survey to identify areas and levels of corrosion

• Prioritize and schedule specific areas to be painted based on:

• Corrosion Levels

• Environment

• Schedule Value

• Equipment Criticality

• Provides cost effective asset protection

Specialty Services

Services

Systematic

Programs

14

Outages

Austin has extensive experience in all phases of the turnaround cycle from the

front-end efforts of planning and scheduling through execution, system turnover and start-up. Performing both embedded and stand-alone turnarounds, Austin has particular in-house expertise in performing Alkylation Unit projects.

Austin routinely performs:

Alloy welding

Bolt torqueing

Offsite pipe fabrication

Pipe installation

Bundle extraction

Valve replacement

Tower and column work

I/E work

Vessel modification

Code work

Millwright work

Scaffolding

Insulation

Planning/scheduling

Purchasing/subcontract

management

PHASE 1

Business Strategy

PHASE 2

Preliminary Development

PHASE 3

Develop/Refine Scope

PHASE 4

Finalize Planning

PHASE 5

Pre-turnaround Activities

PHASE 6

Turnaround Execution

PHASE 7

Close-out/ Review

15

Keys to Success

• Early Involvement

• Goal Alignment

• Detail Execution Planning (Work/Resources)

Outage Execution -

A Phased Approach

16

Construction Capabilities

Civil/Structural

- Site prep & survey

- Underground utilities

- Foundations &

area paving

- Structural steel

erection

Mechanical

- Equipment

installation

- Rotating equipment

assembly &

alignment

- Piping

- Rigging

E&I

- Electrical

- Instrument

installation

- Conduit

- Tubing/piping

- Terminations

Specialty

- Scaffolding

- Painting/coatings

- Insulation & abatement

- Fireproofing

Additional

- Commissioning/

start-up support

- QA/QC program

w/complete ITPs

- Earned value-

based project

controls

- Procurement

- Lean construction

work processes

17

Construction Overview

Project controls in support of Austin’s work include:

• Estimating in support of project development

• Detailed project estimates

• Project control execution plans and control of work processes

• Detailed, logic-driven & resource loaded schedules

• Quantity-driven progress tracking and earned value reporting and forecasting

• Change Management

• Integrated turnover system tracking

• Integrated quality process from award through close-out

• Structured to fit size & complexity of project

• Development of integrated capital projects team philosophy

• Early construction input during FEL 2 & 3

• Project-specific estimates with uniform work breakdown structure

• Project-specific, resource loaded, logic driven schedules

• Timely & accurate physical field progress reporting for earned value progress

18

IPA Best-in-Class Program Award

Small-Cap Capabilities

• Executive Sponsors

• Alliance Steering Teams

• Site Steering Teams

• Site Strategic Plans

• Quarterly Key KPI Reviews

• Individual Accountability Plans (MAPs)

19

Strategic Customer Alignment

• Best in Class Safety Performance

• Employee-Ownership

• Proven Performance and Cost Savings

• Best in Industry Supervision and Crafts

• Resource Capacity/Flexibility

• Geographic Footprint

• Broad Range of Capabilities

• Committed to Customer Key Business Drivers

• Access to Multiple Sites and Industry Best Practices

20

Summary