1. TM “New” Kvaerner Corporate Structure Kjell Almskog President & CEO KVAERNER ASA Jan T. Jørgensen CEO Oil & Gas Core Business Area EPC and Technology provider to Process-based Industrial sectors Keith Henry CEO Engineering & Construction EPC and Technology provider to Offshore oil & gas installation and services Discontinuing businesses * Shipbuilding* Property Development* Misc. businesses * Energy* Infrastructure Investments* Construction * Mechanical Fabrication* Pulp & Paper

2. TM Kvaerner Oil & Gas / E&C - Worldwide Locations Canada UK Russia South East Asia South America USA Norway Oslo, Bergen, Moss, Stavanger, Egersund Scandinavia Moscow Thailand Singapore Malaysia Indonesia Philippines Melbourne Brisbane Perth Brazil - Curitiba Venezuela - Caraccas Chile Peru Houston Wellsville Bridgewater Charleston Louisville Merrillville Pittsburgh San Francisco San Remon Salt Lake City Tucson Washington, PA Calgary Edmonton St. Johns Hamilton Toronto Aberdeen London Portsmouth Methil / Teesside Northampton Warrington Australia Algeria Nigeria - Lagos Angola - Luanda South Africa Africa Mumbai Pune India Saudi Arabia UAE Iran Middle East Beijing Shanghai Baku China Azerbaijan Belgium France Holland Switzerland Europe

3. TM Conducting business internationally Today’s topic: Project execution in light of local framework conditions Understanding people & cultures Managing communications Creating network & alliances Securing team spirit and participation Build on lessons learned

4. TM..based on personal experience / observations 3 years 5 years 2 years 6 years 2 years

5. TM 3rd Dimension.…..managing the 3rd Dimension.…locally The need to “think global - act local”  Quality /Technology  Price Contract  Network  Alliances  Culture  Presence  Credibility  Financial Engineering  Facilitation X

6. TM SENDER CODE SIGNAL DECODE RECEIVER Standardisation of decoders are required to improve multi-cultural communication to improve multi-cultural communication COMMUNICATION

7. TM WHAT WE KNOW - WE KNOW WHAT WE KNOW - WE DON’T KNOW HAVE YOU SEEN THE LIGHT ? WHAT WE DON’T KNOW - WE DON’T KNOW

8. TM THE SHORTEST DISTANCE BETWEEN TWO POINTS IS NOT A LESSONS LEARNED REMEMBER NORWAY RULES THE WAVES “INDONESIA” WAVES THE RULES

9. TM THE INDIVIDUAL DIMENSION Perception –( how impressions are created ) Cognition –( how we think ) Emotion –( How we feel ) THE GLOBAL DIMENSION The global perception is an understanding that members of a culture adhere to. The global perception is used to form values and norms, to explain the meaning of life and the role of the human being in relation to: the universe / super natural powers / other human beings Def. THE SOCIAL DIMENSION Status & role Family, age & authority Sex Politics

10. TM CULTURAL BACKGROUND PERSONALITY PROFESSIONALISM WHAT CONTROLS YOUR MIND ?

11. TM -5-4-3-2+1+2+3+4+5 GERMANY NORWAYUSAENGLAND FRANCE ASIA THE CULTURAL GAPIMPORTANCE POSITION WORDS STATUS SENTIMENT AGE BODYLANGUAGE BACKGROUND EXPRESSION SOCIALCONDITIONS SITUATION EVENT CONVERSATION SOUTH AMERICA ITALY/SPAIN M. EAST AFRICA GERM. SUISSE HIGHCONTEXT LOWCONTEXT

12. TM PUNCTUALITY PUNCTUALITY JOBCONCENTRA-TION INITIATIVE LOYALTY INDONESIA MALAYSIA SINGAPORE THAILAND PHILIPPINES A 4,5 % 19,0 % 16,7 % 6,3 % 3,7 % A 4,5 % 19,0 % 16,7 % 6,3 % 3,7 % B 49,3 % 59,5 % 50,0 % 50,0 % 48,1 % B 49,3 % 59,5 % 50,0 % 50,0 % 48,1 % C 46,3 % 21,4 % 33,3 % 43,8 % 48,1 % C 46,3 % 21,4 % 33,3 % 43,8 % 48,1 % A 1,5 % 4,8 % 5,6 % 1,6 % 0 % A 1,5 % 4,8 % 5,6 % 1,6 % 0 % B 39,8 % 47,6 % 72,2 % 45,3 % 18,5 % B 39,8 % 47,6 % 72,2 % 45,3 % 18,5 % C 59,7 % 47,6 % 22,2 % 53,1 % 81,5 % C 59,7 % 47,6 % 22,2 % 53,1 % 81,5 % A 0 % 0 % 1,9 % 1,6 % 3,7 % A 0 % 0 % 1,9 % 1,6 % 3,7 % B 9,0 % 23,8 % 37,0 % 21,9 % 22,2 % B 9,0 % 23,8 % 37,0 % 21,9 % 22,2 % C 91,0 % 76,2 % 61,1 % 76,6 % 74,1 % C 91,0 % 76,2 % 61,1 % 76,6 % 74,1 % A 0 % 0 % 0 % 1,6 % 0 % A 0 % 0 % 0 % 1,6 % 0 % B 16,4 % 11,9 % 18,5 % 14,1 % 18,5 % B 16,4 % 11,9 % 18,5 % 14,1 % 18,5 % C 83,6 % 88,1 % 81,5 % 84,4 % 81,5 % C 83,6 % 88,1 % 81,5 % 84,4 % 81,5 % A = EXCELLENT; B = GOOD; C = POOR; % = Percentage of workers within a single category SOURCE ; ICHIMURA SHINICHI ; NIHON KOGYO IN ASIA (JAPANESE COMPANIES IN ASIA), 1988 (JAPANESE COMPANIES IN ASIA), 1988 ATTITUDE TOWARDS WORK IN ASEAN

13. TM Experiences from Asia ….. from one of Kvaerner’s Fab.shop supervisors in Malaysia Not only Norway can.. - also Asia has capabilities / competence Hard-working people - who with proper guidance and follow-up can achieve great results Pleasant people to work with Don’t have too many “white people” in the loop All over Asia there are different cultures - we have to recognise this Need to make an effort to understand the different culture(s) –mindset, mentality, work-practices & attitudes, etc. Willing - and able - to learn If they say “no problem” - then you have a problem ! Asians recognise that they have to “import” knowledge & technology from Western cultures Have to take weather / seasons into account. Heat, humidity & rain Oil & Gas industry is very attractive - as the region is energy scarce

14. TM RELOCATION OF EMPLOYEES & THEIR FAMILIESNORMAL PREDEPARTURE ARRIVAL IN THE NEW COUNTRY THE PARTY IS OVER CRISIS CRISIS HEALTHYADJUSTMENTHEALTHYADJUSTMENT WHAT’SNEXT? RETURN TO HOME COUNTRY WELCOME HOME PREDEPARTURE ADAPTED FROM HARRIS & MORAN 1979, DE CIERI1989 HONEYMOONPHASE PHASES OF PSYCHOLOGICAL ADJUSTMENT

15. TM AN OLD POEM A WISE OLD OWL SAT IN AN OAK. THE MORE HE HEARD, - THE LESS HE SPOKE. THE LESS HE SPOKE, - THE MORE HE HEARD. WHY CAN’T WE ALL BE LIKE THAT WISE OLD BIRD

16. TM....a practical example Offshore N.W. Shelf Australia - The Greater Gorgon Area Mission: Deliver an Integrated Business Solution for the Greater Gorgon Area which provided a superior investment opportunity Front-end Engineering Design - Using an Alliance Framework Contract Long term vision: Progress from front end loading support into design, procurement, construction assistance and finally into operations / maintenance / op’s engineering support

17. TM What should be the relationship framework? “Client participating alliance” Pipelines Subsea Platform Drilling Pipelines Operations

18. TM Strategies to Achieve Vision & Mission Relationships: Build lasting relationships. Work Processes: Identify and apply best practice. TOOL BOX Technology: Apply creative technology. People: Use the best talent from around the world.

19. TM Why Start Early to Form the Relationship? Shall we shout to communicate? Shall we wait to see what happens? Shall we build a bridge? Start Early!! Risky! Shall we jump? Misunderstanding No progress That takes time

20. TM World Class Team Mobilised Total Integration Best in Class approach

21. TM 3rd Dimension.…..managing the 3rd Dimension.…locally The need to “think global - act local”  Quality /Technology  Price Contract  Network  Alliances  Culture  Presence  Credibility  Financial Engineering  Facilitation X Q & A