Austin Overview and Capabilities

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Founded in 1918

100% Employee-Owned

7,500 Austin Industries Employee-Owners

5,500 Austin Industrial Employee-Owners

$2 billion in annual sales

#33 Contractor Engineering News Record

Diversified

- Commercial

- Bridge & Road

- Industrial

No Debt

Austin Industries – Our Parent Company

Company Overview

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Employee Stock Ownership Plan Established in 1986

By 2000, Austin Industries was 100% employee-

owned (at no cost to the employees)

Austin Industries has paid out over $300 million in

retirement benefits through the ESOP.

How It Benefits You

Because our company is 100% employee-owned, our customers know that each individual they contact throughout our company has a vested interest in the success of their projects.

Employee-Ownership

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Austin’s Culture

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Safety Performance and Improvement

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0.76

0.560.52

0.47 0.46

0.22

0.32

0.23

0.36

0.43

0.19

0

0.2

0.4

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0.8

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

TRIR

Wo

rk H

ou

rs (

MM

's)

Work Hours (MM's) TRIR

Safety Culture Surveys - 2008

Life Critical Rules - 2009

Boots on Ground Initiative - 2010

HSE Mgt Steering Team - 2009

Driving to Zero Initiative - 2011

Risk Assessment for Hiring - 2013

Leadership Cross Audits - 2012

Risk Assessment for Existing - 2014

A+ Accelerated Comprehension - 2015

Task Between the Task - 2016

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Austin is an active participant in the OSHA Voluntary Protection Program and has been since 1993.

We were the first merit shop contractor in the U.S. to be recognized for having exemplary safety and health programs and processes in place.

It is the requirements of the VPP Star certification that form the foundation of Austin's HSE program.

Austin is the only contractor in our industry that serves on the National VPP Board of Directors.

Austin currently has four Star sites.

- LyondellBasell – Channelview – 2 sites

- LyondellBasell – La Porte

- LyondellBasell – Bayport

Austin & OSHA VPP

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Current and recentsite locations

Austin Offices

Company OverviewWhere We Work

Austin Offices

La Porte, TX Augusta, GA Spartanburg, SC Baton Rouge, LA Nederland, TX Borger, TX Corpus Christi, TX

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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

Plant Services

• Facilities

• Warehouse

• Logistics Support

• Janitorial

• Grounds

• HVAC

• Tool Room

• Operations Support

• Raw Material handling

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

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Customer Base

Oil, Gas & Chemicals Manufacturing Energy - Power

Albemarle BASF Bayer Material Chevron

Oronite Clariant DSM ExxonMobil Lanxess Linde/BOC Lubrizol LyondellBasell

Marathon

Motiva

Navajo

Refining

PCS

Phillips 66

Prayon

Shintech

Syngenta/

Targa

TOTAL

Bridgestone (BATO)

Fuji

International Paper

Kimberly-Clark

Milliken

Roche Carolina

WestRock

American Electric

Power

Austin Energy

Bryan Texas Utilities

Calpine

CPS Energy

GE Energy

KiOR

Nordic Biofuels of NE

Orlando Utilities

Duke/Progress

Energy

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Maintenance Execution Resident Contractor - Overview

Establish site/project 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 – maintenance, capital, operations support

Review indirect staff requirements

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Continuous Improvement

KEY BUSINESS DRIVERS (KBDs)

IDENTIFIED

(shared with Austin)

KEY PERFORMANCE INDICATORS

(KPIs) IDENTIFIED

(support KBDs)

• Definition & calculationagreed to for each KPI

• Target level of performanceagreed to for each KPI

DEVELOP PERFORMANCE

SCORECARD

DEVELOP TACTICAL

ACTION PLAN FOR EACH KPI

Communicated to Austin supervisors & employee-owners

PERFORMANCE MEASUREMENT

(monthly reporting)

REGULAR PERFORMANCE

REVIEW SESSIONS

(Owner & Austin)

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Continuous ImprovementOpportunity for Improvement (OFI)

Implemented & championed at sites

Participation by all employee-owners is encouraged & expected

Assists in continually driving down operating costs

-Each site has an annual savings target

Creates additional value for our customers

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Austin Quality Control

Code Stamps: A, PP, U, & R

Tailored to fit service offering

Alignment with Project Specifications

Supervisor and Craft Quality Training

− Proprietary Weld Quality Program

− Includes Welders, Supervisors, Pipefitters & Inspectors

Non-conformance process

A Boiler Assembly PP Pressure Piping U Pressure Vessel R Repair & Alteration- National Bd. Certification

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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

Cost Analysis

Material / Equipment procurement & Controls

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Structured to fit size & complexity of project

Development of integrated capital projects team philosophy

Early construction input during FEL

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

IPA Best-in-Class Program Award(Independent Project Analysis Group Benchmarking)

Small-Cap Capabilities

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Subcontract Management

Experienced in management of both Austin and

owner subcontractors

Require subs to adhere to site HSE & QCC

standards

Costs rolled up in Austin’s forecasting & progress

reporting

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Austin has extensive experience in all phases of the outage 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 routinely performs

Alloy weldingBolt torqueingOffsite pipe fabricationPipe installationBundle extractionValve replacement

Catalyst ReplacementI/E workPreheater ReplacementCode workMillwright workScaffolding

InsulationPlanning/schedulingPurchasing/subcontract management

Turnaround Group

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The Austin Advantage Specialty Management Programs

Austin Scaffold Asset Program(ASAP)

Heat Loss Survey

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Training/Certification Process

In-house training prior to 1990

ABC Contractor of the Year – 1991

Subject Matter Expert

involvement

In-house, validated assessment –

1993

Leading role in national

certification process

Transition to national assessment

– 2002

Training based on assessment

prescription

Performance Plus

Assess through NCCER written testing

Develop individualized training prescriptions

Skills upgrade training

Performance verification

Austin – A Leader in Craft Training

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Local/community emphasis

One-stop shop

Transition existing workforce

Austin database

Employee referral program

Advertising

- Billboards/radio

- Email blasts

- Postcards to former Austin employee-owners

- Weld testing offices

- Craft journals

Staffing/Recruiting/Retention

Job fairs

Local schools/Youth Construction Committee

Resource sharing

Austin recruiting centers

- Augusta, GA

- Baton Rouge, LA

- Beaumont, TX

- Deer Park, TX

- Spartanburg, SC

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International PaperOngoing Maintenance & Capital

Project Overview

Services:

Ongoing maintenance &

capital work in all

disciplines.

Locations:

Start Date:

IP Pensacola 12/01/13IP Riverdale 12/01/13IP Eastover 01/27/14

Project Size $:

$25 Million/Yr.Scope:

Perform maintenance and project work in all work disciplines. Perform S/D’s, Outages and Field Cycle Days in all work disciplines. Work is performed on both a time & material and lump sum basis.

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Kimberly-ClarkOngoing Maintenance & Capital

Project Overview

Services:

Ongoing maintenance

& capital work in all

disciplines

Location/

Start Date:

Beech island, SC-1991

Owensboro, KY-2004

Ogden, UT-2005

Neenah, WI-2009

Project Size $:

$15 million/year

Scope:

Perform maintenance and project work in all disciplines. Removal and installation of equipment.

Four K-C facilities. Work is performed on both a time & material and lump sum basis.

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WestRock Maintenance

Project Overview

Services:

Ongoing maintenance

& capital work in all

disciplines.

Location: Dublin, GA

Start Date: 01/16/17

Project Size: $2

Million/Yr.

Scope:

Perform maintenance and project work in all work disciplines. Perform S/D’s, Outages and Field Cycle Days in all work

disciplines. Work is performed on both a time & material and lump sum

basis.

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Bridgestone AmericasMaintenance

Project Overview

Location:

Wilson, NC

Graniteville, SC (PSR)

Trenton, SC (ORR)

Start Date: 2011

Contract Value: $25 M/year

Headcount: 315

Scope:

Preventative maintenance, supplemental maintenance, machining, stores,

janitorial, battery attendants, capital projects, other.

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Potash CorporationMaintenance, Specialty, Capital

PROJECT SUMMARY Services:

Total Maintenance

(mechanical, I/E)

Material Handling

Operations Support &

Capital

Location:

Augusta, GA

Start Date: 1977

Project Size:

$40 million/year

Austin provides mechanical, electrical, civil, I&C, and specialty services at the Augusta site. .

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BASF CorporationMaintenance, Specialty, Capital

Project Overview

Services:Ongoing Maintenance (mechanical, electrical, specialty), warehousing, tool room, capital

Location:Texas, Georgia, and Tennessee

Start Date:1994

Project Size $:$7-10 million/year

Austin began providing services to BASF in Bayport, TX in 1994.

Added: - Pasadena, TX site in 2005- Savannah, GA site in 2010- Chattanooga, TN site in 2011

Performed a C4 construction/turnaround project – BASF/ Sabina facility in Port Arthur, TX in 2007 – 150,000 work hours

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Austin provides mechanical, electrical, civil, I&C, and specialty services at various plants in the Carolina’s, Florida, and Kentucky.

PROJECT SUMMARY

Services:Capital Construction (mechanical, electrical, specialty),

Location:Throughout NC, SC, FL, IN

Start Date:2010

Project Size $:$25 - 30 million/year

Duke EnergySmall Cap Construction

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Summary

Best in Class Safety Performance

National contractor – Regional approach

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

Continuous improvement methodology/customer

alignment

Core competencies in construction, maintenance,

specialty & plant services

Access to Multiple Sites and Industry Best Practices