CEO UpdateJuly 2012

Strategy • Defining what we can do most profitably e.g. we may rent not own facilities• Improving structure and strategy across all businesses, with specific execution plans• More focus on recurring revenue e.g. repair and overhaul• Governance; Treasury structure & stronger role of our Board for approvals

Customers• Relationship building to see more and better deals• Stronger customer relationships at senior levels• Professionalising but stay innovative and fast to act• Focus is on winning and executing high margin lower risk projects • Commercial disciplines and risk management improving e.g. 3 in house counsel.

Operations• EBIT & Cash Flow Focus • Improving margins, via cost reduction, & price increases. • Earn your right to grow• Business Optimisation Projects - sales and lean initiatives• Optimising Employee Performance• Leveraging our investments in systems and processes e.g. IT, ERP• Nepean Asia

CEO Update – Our Focus is now more on our Operating Performance

We Measure Success By

We achieve sustainable financial growth & return {Min ROA of 25%}

Our customers choose us over our competitors, and our customers achieve superior outcomes {97% DIFOTTQ, Audited customer satisfaction, EBIT, and 40% market share}

Our employees prefer to work with Nepean than competitors {95% retention & ease of attraction & leading job satisfaction KPI’s}

Our employees and our customers see Nepean as an intrinsically safe place to work {Zero Harm Culture, TRIFR 2.5%}

Our employees work together in accordance with our values and have created a culture of success.{Financial Reward for effort, internal culture survey, engagement and extraordinary outcomes}

We are an innovation leader, and an exciting business to partner with. {10% intrinsic sales growth from commercialized innovation}