SOLID ENERGY NEW ZEALAND LTD

March 2010

Solid Energy – A diversified energy business

Solid Energy Coal Business

• • • •

Opencast Mines Rotowaro Stockton Ohai New Vale Underground Mines

•

Huntly East

•

Spring Creek

•

Terrace Renewable Energy Business New Energy Business Coal Mine Methane Gasification Research and Development

Operations overview

•

Rotowaro Opencast

•Thermal Coal •Customers: Genesis, New Zealand Steel, Small industrial •

Stockton Opencast

•Coking coal •Customers: Export, Holcim Cement •

Spring Creek Underground

•Coking Coal •Customers: Export, Industrial •

New Vale Opencast

•Lignite Coal •Customers: Industrial, household •

Coal Seam Gas

•Project Development •

Lyttelton Port Company

•

Export

•

Huntly East Underground

•Thermal coal (used for steel making) •Customers: NZ Steel, small industrial •

Natures Flame

•Biomass •Customers: Industrial, household •

Switch

•Energy design solutions & distribution for household & businesses including solar water heating •

BiodieselNew Zealand

•Biodiesel •Customers: small commercial •

Coal to Liquid Fuels

•Project Development

Solid Energy – A Leading Producer of Primary Energy

 Solid Energy, a state owned enterprise, is a major New Zealand energy producer and a leading producer of high-quality coal for export and for New Zealand markets.

 We invest in research and commercialisation of new sustainable forms of energy that use coal, and in renewables, such as biomass, biodiesel and solar, that help New Zealand in the transition to clean, affordable and renewable energy forms.

 We are committed to achieving a positive net effect on the New Zealand environment across all our businesses, and to the highest levels of health and safety performance in our workplaces. Our target is zero injuries.

 We employ over 728 staff with a further 555 people employed by contractors at our sites across the country.

Major Export Customers India RSA India China Japan: 25 Years Japan Japan Australia Chile America Brazil Coking Coals

Strong demand for premium low ash coking coals, have produced Solid Energy’s core markets in Japan, China, India, South Africa and Brazil.

Specialist Coals

Special low ash coals from Solid Energy have been used in Activated Carbon and Silicon Metal Industries in Japan, North America and Europe for over 20 years.

Thermal

As a result of new mines, thermal coal supply will continue to increase in conjunction with ongoing growth.

Renewable Energy Business

 Solid Energy's Renewable Energy portfolio has three businesses – Biodiesel Natures Flame Switch  Solid Energy’s increasing presence in the bioenergy sector supports national energy objectives of increasing security and affordability by using our indigenous resources while reducing energy-related emissions.

Biodiesel

• The aim is 70 million litres pa (50% of New Zealand biofuels target) in three years. Building new production plant near Christchurch. Stage one output = 15 million litres pa. Feedstock oilseed rape and used cooking oil.

“Good biodiesel”

Switch

 Integrated energy systems for homes and businesses. Nationwide distribution network. Leading distributor of solar hot water heating (Apricus brand) and supplier of biomass central heating systems.

Natures Flame

 Pellets made from waste wood. Currently developing third plant in Taupo (existing near Christchurch and Rotorua). Largest producer of wood pellets in the Southern Hemisphere. Planning exports.

New Energy Business



Coal seam gas

– extract methane from deep coal seams. First project in Waikato, currently appraising potential. Could be as big as Kupe (300 PJ).



Underground coal gasification

– gasify deep coal “in situ” and pipe the resulting ‘syngas’ to the surface. Successful projects in Australia, South Africa, former Soviet Union. Access to leading technology. Looking at a pilot in Waikato. Could be enough gas to run one of more generating units the size of Genesis’ e3p or Contact’s Otahuhu C stations.

New Energy Business continued



Coal to liquids

(Southland lignites) - proceeding with feasibility study. Could replace most of New Zealand’s imported diesel, provide energy security, increase New Zealand’s economic competitiveness and benefit New Zealand’s balance of payments. Many options available to manage the CO2 footprint from such a plant including purchasing credits, forestry offsets and

carbon capture and storage

.



CO2 Emissions Reduction

- multiple initiatives in progress including carbon capture and storage by forest sequestration and geosequestration. Involved in New Zealand and international activities. Founding partner and owner of demonstration and storage project at Otway, Victoria, Australia.

Modules Order Management Purchasing iProcurement Management Accounts Receivable Cash Accounts Payable Inventory Pcard Enterprise Asset Management Project Accounting General Ledger Discoverer/Alerts/Workflow Fixed Assets

R12 Upgrade Timeline

R12 Upgrade (planned schedule) 27-Oct-09 Go Live 6-Apr-10 Fallback Go Live Nov-08 Nov - Jan R12 Setup Feb - May Config, Test & Doc Aug - Oct Train Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Apr-10 R12 Upgrade (actual schedule) 27-Oct-09 Go Live Nov-08 Nov - Jan R12 Setup Feb - Oct Config, Test, Doc. Train Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Apr-10

R12 Upgrade Timeline

          

First Test Upgrade - DSENZI R12 Investigation – Feb 09 Super User Training – Mar-09 Second Test Upgrade User Acceptance Testing – Jan 09 R12 Setup And Configuration – Mar-09 – Apr-09 – TSENZI – Apr-09 – May-09 – Jun-09 Third Test Upgrade – PSENZI – Jul-09 Fourth Test Upgrade – PSENZI – Aug-09 Fifth (dry-run rehearsal) Upgrade Documentation and User Training Go-live Labour Weekend Oct-09 – PSENZI – Sep-09 – Sep-09

New Functionality

     Payments Subledger Accounting Web ADI Balance Forward Billing Collections

Issues

           350 issues logged In process purchase orders Workflow mailer inbound processor Autoinvoice eAM pre-upgrade steps not documented Cannot close AR period with incomplete invoices Some Folder Forms had to be recreated Bank Accounts GST Performance – general – AP Invoice validation Problems with old data – data not migrated – pre 12.0.6 e.g. customers, suppliers

Upgrade or Reimplement?

   Timeframe – shorter to upgrade?

Chart of Accounts change?

Tidy up opportunity?

Q: What was the main business driver for the upgrade?

Q: How did senior management react to the business case?

Q: Describe the project timeframes?

   What tasks were involved What took the longest What took longer/shorter than expected

Q: Describe your project team setup.

What sort of people were involved?

What was outsourced / in-house

Q: What was the impact on integration with other systems?

Q: How did you approach customizations

Customizations

  Register Test Scripts

Customisations Gotchas

   RA_CUSTOMERS Multi-Org Access Control Test each upgrade run

Q: What has the end-user experience been like?

Q: What training was required and how was it delivered?

Q: What considerations were needed given that you are an Oracle OnDemand supported customer

Q: What was the biggest customization impact with data model changes

Q: What was your best information source?

   MOS – Metalink OpenWorld Papers Release Update Documents Took strategy from this and decide plan of attack Defer were possible   Oracle Forums Google!

Q: How was your experience with Oracle Support?

Lessons Learned

     Business commitment to testing Flexible go live timeframes Quality of 12.0.6

Resource leakage to other projects MOS – No

Q: What is your favourite feature in R12?