Oil Industry Challenges SurveyPreliminary Results

Pradeep AnandSeeta Resources

+1 281 797 0797; pa@seeta.com; www.seeta.com

Be Better…in Important Ways

February 2016

Introduction

•The objective of the survey was to discover how the oil & gas industry was responding to its current challenges•About 550 survey requests were emailed•Results are based on responses received from the

first 5%•About 85% of the respondents were from oilfield

service companies and their suppliers.•About 86% of the respondents were from USA, 7%

from Europe and about 4%, each, from Canada and Asia

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Summary

• Respondents see that industry is implementing the first phase of the “Absorb the Pain, Position for Gain” strategy, with a focus on cost reductions

•However, a substantial number of people in the oilfield service industry is convinced that senior executives are doing the right things today

•Many respondents had recommendations for how their firms can increase their revenues in the current environment

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Preliminary Results

•What are senior executives primarily focused on? Cost Reduction was the winner, by an overwhelming margin

•Has the firm changed and improved its sales management processes to be successful today? About two-thirds do think that processes and practices have improved; the others don’t agree or are unaware of changes in this area

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Preliminary Results

•Questions: “Has your firm changed and improved its marketing management processes & practices to be successful in today’s competitive markets?” and “Has your firm changed and improved its pricing management processes & practices to be successful in today’s competitive markets?”

•Two-thirds think that marketing and pricing processes and practices have improved for the better and one-third don’t agree or are unaware of changes in this area

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Preliminary Results

•Two-thirds believe that their firm has the right demographic mix to face current market challenges

•When asked “On a scale of 1 to 5, how likely is the younger workforce able to replace the quality work of the retiring generation?” the average result was a tepid 3.25• This shows that there’s a need for mentoring and training

to move this performance higher

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Preliminary Results

•Does your firm have technologies to help your firm’s processes and people to be successful in today’s competitive markets?

•Again, two-thirds of the respondents believe that their firms have the right technologies to be successful in the today’s competitive markets.

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Preliminary Results

•Question: “If there is one thing that you would like your firm to do to increase its revenues, what would it be?” •Pursue New Markets: 34%• Improve Sales Management Practices: 18%•Focus on New Products/Solutions: 16%

•Customer Demand & Interest Creation: 11%• Investing in Human Capital: 5%• Investor Relations: 5%•Customer Training: 5%•Change Customer Engagement Model: 5%

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Charts & GraphsOil Industry Challenges: Survey Preliminary Results

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If there is one thing you would like your company to do to increase its revenues, what would it be?

Improvement Criterion %

Demand & Interest Creation 11%

Marketing Communications

Convince Customers

New Markets 34%

Non-O&G Industries

International markets

Renewable

Sales Management 18%

Client management

Qualify Opportunities

People 5%

Human Capital Management

Investor connections 5%

Customer Training 5%

Product 16%

Automate Processes

More Technology

Expand capabilities

Business Model 5%

Joint Partnerships w/customers

Total 100% 17

If there is one thing you would like your company to do to increase its revenues, what would it be?

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About Seeta ResourcesCatalyze Swift Revenue & Margin Growth

Pradeep AnandPresident, Seeta Resources

+1 281 797 0797; pa@seeta.com; www.seeta.com

Be Better…in Important Ways

Focus: Successful Commercialization of Technologies in B2B/Oilfield/Industrial Markets

• Vice-President, Marketing, Landmark Graphics

• Manager, North American Operations, Baker CAC, Baker Hughes

• Marketing/Business Development Manager, LWD/MWD, NL Sperry-Sun

• Oil & Gas – AirXChangers, Baker Hughes, Baroid Corporation, Daniel Industries, Dresser Industries, Dresser Oil Tools, Key Energy, InnovationNorway, Integrated Exploration Systems (Germany), Landmark Graphics, NL Industries, Numar, Oildex, OFS Portal, Oildex, Petrabytes, Photon, PGS-Tigress, Praxis, Preng & Associates, Sigma Cubed, Sperry-Sun, Object Reservoir (US Venture Partners), Volumetrix

• Engineering/Manufacturing — Aggreko, Astralloy, CompX, Continental Carbon, Excell Minerals, Express Integrated Technologies, Fabsco, Fort Lock, Gundle/SLT Environmental, Harsco Corporation, Harsco Industrial, Harsco Infrastructure, Harsco Metals & Minerals, Harsco Track Technologies, Hendrickson Trailer, IKG Industries, Metal Networks, MultiServ, National Cabinet Lock, Nutter Engineering, Ohmstede, OnePoint, Patent Construction Systems, Patterson-Kelley, Reed Minerals, SGB, SteelPhalt, VisionMonitor Aviation Software, Viswa Lab, Waterloo Furniture Components

• Technology — AMD, Sun Microsystems, Wipro, Syntel, WNS, FuelFX, Gnosys, Management Controls, Metasolv, NobleTek, Avalon Imaging, Scicom, Silicus, Laversab, Facet, Zresearch

• Other — Kanaly Trust, Fort Bend Independent School District, American Sleep; Willy, Nanayakkara, Rivera & Goins

• Adjunct Faculty, Rice University’s MBA Program: Teach “Marketing in the Energy Industry”; Commercializing Technologies in the Oil & Gas Industry

• Engineer (IIT Bombay) + MBA (University of Houston)

Sin

ce 1

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Pradeep Anand

• Developed and improved proprietary Go-to-Market and Pricing Effectiveness processes over more than 30 years

• Have applied these processes to more than sixty business units in North America and Europe

• Facilitated large and small groups of professionals of varied backgrounds

• Adjunct Faculty, Rice University’s MBA Program: Teach “Marketing in the Energy Industry”; Commercializing Technology in the Oil & Gas Industry

• Mentor startups in the Greater Houston area, with a focus on "Go-to-Market" strategies & tactics for startups, “Pricing Effectiveness" and Customer Contacts

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We Catalyze Swift Revenue & Margin Growth

Where you want to be!

Where you are!

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How We Do It

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How we do it

Our Process

Your Team Our Catalyst

Market-Facing

DiagonalCross-Section Change Champions

Strategists/Tacticians

Where are we?Where can we go? Where should we go?

How do we get there?

Facilitates Process

Educates/Trains

Commercialization Execution Focus

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Principle 1. Purpose of a Business

Deliver Value to Customers

Realize Value for Stakeholders

• Revenue Addition• Cost Reduction• Improve Return on Capital

Benefits

Value

Products Services

Pricing Effectiveness

Price on Valueand

What the Market can Bear

Get & Keep Right Customers

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Principle 1. Purpose: Create Value Spiral

Deliver Value to Customers

Realize Value for Stakeholders

• Revenue Addition• Cost Reduction• Improve Return on Capital

Benefits

Value

Products Services

Pricing Effectiveness

Price on Valueand

What the Market can Bear

Get & Keep Right Customers

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Market Capitalization

Principle 2. Focus on Quality Revenues & Margins to Increase Market Capitalization

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MultipleX

Earnings

IncreaseMargins

Introduce New Products

Enter New Markets

Increase Market Share

Improve Pricing Effectiveness

Take Advantage of Market Activity

IncreaseRevenue

ReduceCost

2. Five Gears of Growth of Market Capitalization

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Principle 3Go-to-Market Process

Competition

Customers

Company

Climate

Strategy&

Tactics

Where are we? Where can/should we go? How do we get there?

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Principle 3Go-to-Market Process

Competition

Customers

Company

Climate

Strategy&

Tactics

4Cs

5Gs

3Qs: Where are we? Where can/should we go? How do we get there?

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Process: Answer 3Qs, Start with 4Cs to Execute 5Gs

3Qs

4Cs

5Gs

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Competition

Customers

Company

Climate

Principle 4. Your Market Facing Team Mining Tacit Information & Tribal Knowledge

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How we do itClient Team + Our Process + Our Catalyst

• Client team• Drawn from diagonal cross-section of the firm • Market facing• Future champions of change

• Our process• Answer three questions: Where are we? Where

can/should we go? How do we get there? • Unlock team’s latent knowledge• Guide team to rediscover markets and market dynamics• Guide team to design and identify key Go-to-Market &

Pricing strategies & tactics• Guide team to reinvent/redesign the business

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How we do itOur Catalyst: Pradeep Anand

• Developed and improved the process over more than 30 years

• Have applied the process to more than fifty business units in North America and Europe

• As an employee, helped commercialize three oilfield major technologies, whose revenues today exceed US$3 Billion

• Facilitated large and small groups of professionals of varied backgrounds

• Adjunct Faculty, Rice University’s MBA Program: Teach “Marketing in the Energy Industry”; Commercializing Technology in the Oil & Gas Industry

• Mentor startups in the Greater Houston area, with a focus on "Go-to-Market" strategies & tactics for startups, “Pricing Effectiveness" and Customer Contacts

• Engineer with an MBA

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How we do itResults

• Team members become champions of change• Overcome internal resistance• Team learns and comprehends market dynamics of

business• Speedy and effective implementation • Deft adjustments/corrections over longer term

• Results• Revenue growth, enriched margins • Quick results, long-term effectiveness

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Results:Revenue & Margin Growth

Pricing for Profit

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Revenue/Margin Growth Results

•Redirected OFS firm for sales growth from $300 Million to $1 Billion in 5 years

•4X to 5X increase in market value in 4 years at a manufacturing firm

•Redirected engineered products firm for revenue growth of 2X and margin growth of 5X in 3 years

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Revenue/Margin Growth Results

•Rapid growth from 0% share to 55% share for a latecomer OFS/software firm in Canadian markets

•Redirected a manufacturing firm's market focus that quickly turned major distributors and competitors into customers - stemmed negative cash flow in three months

•Product rationalization at an OFS firm to immediately reduce costs; increased margins by 20% in 1 year

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Revenue/Margin Growth Results

• Insulated $100 Million manufacturing company from ravages of economic and competitive forces, to maintain revenue and margin growth in declining markets

•Swift execution of a major, multi-million dollar offshore outsourcing initiative for a $100 Million publicly-traded software firm

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Country Competitive Price Increase Increase(Local Currency) (Local Currency) %

Belgium 30,000 13,433 45%

Czech Republic 700,000 218,500 31%

Czech Republic 700,000 301,000 43%

France 50,000 88,554 177%

Germany 900,000 740,000 82%

Netherlands 90,000 70,297 78%

Poland 50,000 10,000 20%

Poland 520,000 354,400 68%

Slovania 35,000 14,464 41%

UK 50,000 81,302 163%

UK 22,500 21,102 94%

USA 30,000 30,260 101%

PricingCase Studies

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Industries

•Oilfield Equipment•Oilfield Services•Software• IT Services• Iron & Steel•Construction Services•Power Plant Services•Petrochemicals

Countries

•USA •Germany•UK• Canada• France• The Netherlands• Belgium• Czech Republic• Poland

Pricing Case Studies

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Summary

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About Seeta ResourcesCatalyze Swift Revenue & Margin Growth

Pradeep AnandPresident, Seeta Resources

+1 281 797 0797; pa@seeta.com; www.seeta.com

Be Better in Important Ways