www.rolls-royce.com/nuclear NUCLEAR INNOVATION & TECHNOLOGY CAPABILITY OFFERING NUCLEAR SERVICES Inventory Analysis Identify Inventory Gaps and Provide Recommendations For Inventory Reduction Opportunities and to Address Inventory Vulnerabilities. Rolls-Royce Inventory Analysis provides timely, reliable recommendations for disposition of stock material, recommends changes to existing stock information, potential adjustments on reorder rules and other cost avoidance opportunities. Utilizes a unique, wide range of industry, vendor, fleet and site information Using a unique, wide range of industry and vendor as well as fleet and site information Inventory Analysis classifies each unique stock number into three primary dispositions of excess, keep and partial. Inventory Analysis has an individual set of filtering criteria for each disposition based on historical inventory data, forecasted future usage, and stocking/impact data (stocking level, vendor discontinued and lead time) which enables Rolls-Royce to develop recommendations for changes and improvement opportunities. In addition, Rolls-Royce Inventory Analysis uses an outstanding and comprehensive pool of industry and vendor information to identify improvement and cost saving opportunities. The analysis forecasts industry demand to identify best investment recovery opportunities. Higher return on investment recovery Identification of industry needs for excess or stranded material increases the opportunity to sell off that material and increase investment recovery return. Nuclear Energy Institute’s Top Industry Practice Award (TIP) 2013 TIP award in Management Processes and Support Services for implementation of PIERSS program Inventory Analysis is a key initiative in the award winning Rolls-Royce Proactive Integrated Equipment Reliability and Strategic Sourcing (PIERSS) program. PIERSS is a comprehensive approach that uses early identification of needs and leveraging of knowledge from industry and site organizations to improve Equipment Reliability and Supply Chain processes. Utilities implementing Inventory Analysis have realized Rolls-Royce identified confirmed $28,200,00 of excess inventory material at one utility. Rolls-Royce identified $16,800,000 of excess inventory at another utility. Rolls-Royce purchased $22,300,00 of excess inventory to source the industry. Leveraging engineering, maintenance, and operation intelligence Inventory Analysis identifies PM demand challenges and other material vulnerabilities. This allows supply chain to proactively address these gaps, ensuring the proper material is available when required reducing deferred work and increasing equipment reliability.