Delivering Business Value from Digital Transformation

1 Delivering Business Value from Digital Transformation The Journey Continues with Advanced Analytics and Machine Learning Presented by Tibor Komr czki EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC. Delivering Business Value from Digital Transformation MOL Downstream Overview Perspective on Digital Transformation Delivering Business Value The Importance of the OT Infrastructure The Journey Continues- Advanced Analytics & Machine Learning: Defining Advanced Analytics Predicting Diesel Sulfur in Diesel Hydrotreater Predicting & Optimizing Coke Yield & eliminate steam eruption in a DCU. Closing Comments Q&A. EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC.

2 MOL Downstream at a Glance EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 3. An Integrated Downstream Fuels Value Chain Integrated Fuels Value Chain: 4 refineries, 2 Petrochem plants Logistics including 2,000 retail stations, 8 brands, 13 countries PI System Overview: 4 HA collectives, ~400K tags Elements: ~300 smart templates ~21K elements Notifications: ~150K templates ~6K notifications ~61K event frames including dynamic PI Coresight is primary visualization tool Advanced Analytics and Microsoft Azure EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 4. MOL GROUP AWARDS. Petroleum Economist Award 2016 for FieldComm Group's Plant of the Year Best Downstream Company of the Year The Petroleum Economist Awards aim to celebrate the people, companies and FieldComm Group's Plant of the Year award is given annually to recognize the projects which epitomize the best of the energy industry and to identify and reward people, companies and plant sites around the world using the advanced examples of innovation and excellence.

3 Capabilities of FOUNDATION Fieldbus, HART Communication and/or FDI. technologies,IOT,IIOT,ML in real-time applications to improve operations, In 2015 MOL Group's Downstream delivered its strongest ever performance with a lower costs and increase availability. Clean CCS EBITDA of USD alongside with strong free cash flow generation of more than USD 1bn. This is a supplier and industry independent awards program. The New Downstream Program (2012-2014), which targeted USD 500mn EBITDA To qualify, nominees must be able to supply documented examples of real- was successfully complemented, MOL Group decided to react to further boost its time integration of device diagnostics and multi-variable implementations with profitability and competitiveness by launching the Next Downstream Program 2015- control, safety and plant information / asset management systems that have 2017 (NxDSP).

4 Delivered significant benefits to the operation. The significant incremental improvement of the NxDSP may realize a 3 USD/bbl profitability boost by 2017. EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 5. Perspectives on Digital Transformation EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 6. Triad of Digital Transformation Enablement of Contextual Data Based Decision Making & Management Improving skills Reengineering the workflow knowledge capture around enhanced &. consistent data changing paradigms about data Revised roles/Responsibilities leading by example EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 7.

5 2016. Tactical to Strategic 2010. Tags to Assets 2006. 2002. Enterprise Division IoT. Machine learning 1998 Team Individual Digital Transformation is a Journey USERS CONFERENCE 2016 Copyright 2016 OSIsoft, LLC 8. Moving to PI AF is a Vision and a Journey .. Just do It! . Start PI AF with a key Business initiative and build, capability, momentum and awareness;. Market PI AF vision, capability, and Value to leadership with alignment to strategic initiatives;. Leverage PI AF Jumpstarts, OSIsoft consultation, PI AF templates, SIs, etc. to lower the barriers to PI AF use;. Once PI AF critical mass is achieved, adoption will accelerate and be seen as transformative and strategic.

6 MOL sees PI AF as enabling to many PI System capabilities like PI Coresight, PI Connectors, Integrators, etc.;. USERS CONFERENCE 2016 Copyright 2016 OSIsoft, LLC 9. Tactical Historian to Strategic Infrastructure Supporting Strategic Business Initiatives New Downstream Program Safety first (HSE,PSM). INA Industrial MOL Logistics implementation PI System PI HA / PVS implementation (2012) (2012/ Q2) (2014) (2016). PI AF. PI Coresight MOL Petchem SN Upgrade PI System & Machine (2010). 2012 / Q1 implementation (2015) learning Main PI Milestones (2014) Integration (2017). USERS CONFERENCE 2016 Copyright 2016 OSIsoft, LLC 10. Digital Transformation with PI AF. Interlock statuses APC Crude blending control Energy monitoring IOW.

7 Integrity operating Control loop Yield optimization KPI breakdown Alarm management envelopes Monitoring (2013) Flaring Hydrogen Pressure Swing (2010) (2011 / Q2) (2015 / Q1) adsorbers (2016 / Q1). PI AF SEMAFOR column ARGUS MOL Plan vs Actual Analytics NG and Fuel (2010) efficiency dashboard Analyzer reliability PI HA / PVS Future data demand gas (2011/ Q1) Sigmafine (2014) Azure forecasting (2012) (2015 / Q2) (2016 / Q2). Main PI System Milestones USERS CONFERENCE 2016 Copyright 2016 OSIsoft, LLC 11. Delivering Strategic Business Value EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 12. Next Downstream Program Objectives/Goals + % white product yield by 2017.

8 Operational Maintenance Increase conversion Availability Efficiency More efficient crude distillation Adapt yields to volatile market trends Energy Yield Diesel / Mogas ratio from to Efficiency improvement Motor fuels vs. Petchem products Hydrocarbon Loss Management Flare gas recovery - 0,15 GJ/t Specific Energy Consumption Slop reprocessing Energy KPI Breakdown Regular Monitoring & Reporting Energy monitoring System EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 13. Delivering Business Value : $500M + $500M = $1B in 5 years + 1% Operational availability by 2017. Optimize maintenance cost Asset Integrity and Process Safety Management Monitoring & reporting CMS controlling SAP development New DS program delivered USD $500M.

9 Corrosion management Clean EBITDA improvement in 2014 vs Corrosion Upgrading program (CUP) 2011 targets Authority compliance ADDITIONAL $500M. increase by end of year 2016 vs 2014. EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 14. Digital Transformation of New & Next Downstream program Yields Safety & Asset Operational integrity (PSM) optimization Product quality Interlock statuses Analyser reliability (Argus) Operating envelopes Integrity Operating Windows Yield Accounting via NG (natural gas) and fuel Corrosion control (HTHA) Sigmafine (PI AF based) gas demand forecasting Alarm management Normal mode of control loops Preventing coke steam APC control monitoring eruption Diesel sulphur optimization Coker yield optimization Operational Maintenance Availability Efficiency Asset Reliability from Energy Proactive & Predictive Advanced Analytics Energy monitoring and management SAP PM Integration Energy KPI breakdown Health Score in PI AF.

10 Column energy efficiency Energy Yield CBM on all rotating equipment dashboard Efficiency improvement PSA Pressure Swing Adsorbers Hydrogen, utilities - energy balances Chillers Flaring Heat Exchangers Electrical Infrastructure EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 15. The Journey Continues: Advanced Analytics & Machine Learning EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC 16. The Importance of Having an OT Data Infrastructure Rapid development and scalability of applications Reinforce the use of data and analytics based decision making Support cultural change and normalization Leverage advanced technologies including advanced analytics and IOT to accelerate Business Value Enable sustainable Business Value in the 21st century EMEA USERS CONFERENCE BERLIN, GERMANY Copyright 2016 OSIsoft, LLC.