SAGE METERING INC 2012 ANNUAL SALESMEETING SAGE METERING

SAGE METERING, INC. 2012 ANNUAL SALESMEETING

SAGE METERING PIONEERS IN THERMAL TECHNOLOGY DEVELOPMENT

WIN A SAGE PRISM! Vote on the following Rep and Distributor presentations for the most informative and beneficial application Turn in the bottom half of the perforated Worksheet Form after the Presentations The Rep/ Distributor with the most votes wins the Prism! u 3 -Calibrations Channel A: Air 4” Channel B: Air 6” Channel C: NG 2”

MEETING OVERVIEW – Monday AM u REPS & DISTRIBUTORS SHARE SUCCESSES u MARKETS & APPLICATIONS – Industrial & Heavy Industrial – Environmental & Flare Gas – Energy Reduction and Combustion Control – Other u NEW SIMPLIFIED BROCHURE + WEBSITE PART# AND DRAWING GENERATOR

MEETING OVERVIEW – Monday PM u REP BINDER REVIEW u TECHNOLOGY REVIEW – Benefits – Demos – In-Situ Calibration – Introducing ATEX Zone 1 u APPLICATION CONSIDERATIONS – Flow Profile Considerations – Flow Conditioners – Remote or Integral – Motors & Generators

COCKTAIL RECEPTION – Monday Evening

MEETING OVERVIEW – Tuesday AM u INNOVATION AND AUTOMATION u PRODUCTION AND FACILITIES u DOCUMENTATION CONTROL & QUALITY CONTROL u CUSTOMER SERVICE u SELLING AGAINST COMPETITION u SALES SUPPORT

MEETING OVERVIEW – Tuesday PM u ADDRESSER SOFTWARE DEMONSTRATION u FUTURE PLANS & GOALS u PLANT TOUR u MEETING CONCLUSION

SAGE REPRESENTATIVES AND DISTRIBUTORS u INTEGRAL PART OF OUR SAGE FAMILY u. A CRITICAL LINK TO OUR CUSTOMERS u REASON FOR OUR STRONG GROWTH u KEY TO OUR CONTINUED SUCCESS

OUR MUTUAL GROWTH

OUR MARKET SHARE

THERMAL MFM’S GROWTH

THERMAL VS OTHER TYPES

MEETING CONTINUES WITH NEW SESSION

REPS TO SHARE YOUR SUCCESSFUL APPLICATIONS

VOTING FOR THE SAGE PRISM! Vote on the previous Rep and Distributor presentations for the most informative and beneficial application Turn in the bottom half of the perforated Worksheet Form after the Presentations The Rep/ Distributor with the most votes wins the Prism! u 3 -Calibrations Channel A: Air 4” Channel B: Air 6” Channel C: NG 2”

MEETING CONTINUES WITH NEW SESSION

APPLICATION REVIEW

MEETING CONTINUES WITH NEW SESSION

NEW SAGE BROCHURE u COMPLETELY NEW FORMAT u DESIGNED TO DRAW ATTENTION u EASIER TO READ - LESS TEXT u MORE APPLICATION PHOTOS u NEWER PRODUCT PHOTOS u CROSS LINKED TO WEBSITE u QR CODE TO BUILD PART NUMBER FOR CUSTOMER’S APPLICATION

BROCHURE LINKS u http: //www. sagemetering. com/prime (PAGE 4) u http: //www. sagemetering. com/prism (PAGE 4) u http: //www. sagemetering. com/rio (PAGE 5) u http: //www. sagemetering. com/clear (PAGE 5) u http: //www. sagemetering. com/applicationsdata (PAGE 5) – – – – Select Model (Prime, Rio, Clear or Prism) Select Pipe Size (inches or millimeters) Select Insertion or In-Line Select Mounting Option Select Integral or Remote Select Power Select Gas Generates Part Number and Ranges

LUNCH BREAK

MEETING CONTINUES WITH NEW SESSION

SALES BINDER REVIEW

MEETING CONTINUES WITH NEW SESSION

PRODUCT AND TECHNOLOGY REVIEW

SAGE PRODUCTS u PRIME u RIO (SIP/SRP)–Our Premier TMFM (SIX/SRX)–ATEX Zone 1 (Gary at 3: 45 PM) u CLEAR (SIA/SRA) – Our Most Economical TMFM u PRISM (SID/SCD)–Portable Datalogging TMFM u MOUNTING u FLOW HARDWARE – SVA 05, STCF 05 CONDITIONERS – Standard in ½” and up In-Line Flow Meters – Optional Captive Flow Conditioners for Insertions u ADDRESSER SOFTWARE

WHAT IS A THERMAL MASS FLOW METER? u It is a Meter that directly measures the Gas Mass Flow based on the principle of conductive and convective heat transfer

WHAT DO THE SENSORS CONSIST OF? u The Sensors are RTDs, which are Resistance Temperature Detectors u They consist of highly stable reference-grade platinum windings clad in 316 SS u One of the RTDs is self-heated by the circuitry and serves as the Flow Sensor u The other RTD acts as a Reference Sensor. Essentially it is used for temperature compensation

HOW DOES IT WORK? u The Sage proprietary Sensor Drive Circuitry maintains a constant overheat (ΔT) between the Flow Sensor and the Reference Sensor u As gas flows by the heated sensor (Flow Sensor), the molecules of flowing gas carry heat away from this sensor, and the sensor cools down as it loses energy u The circuit will automatically (within 1 second) replace this lost energy by heating up the flow sensor so the overheat temperature is restored u The current required to maintain this overheat represents the Mass Flow signal

WHY THERMAL MFMs over OTHER TECHNOLOGIES?

WHY THERMAL? u DIRECT MASS FLOW – No need for separate T or P transmitters u RANGEABILITY AND SENSITIVITY – Turndown of 100 to 1 – Resolution as much as 1000 to 1 (for Sage) – Sage can easily detect even 5 SFPM u LOW PRESSURE DROP – Will not impede the flow or waste energy u NO MOVING PARTS – Eliminates costly bearing replacements, and prevents undetected accuracy shifts u EASE OF INSTALLATION – Insertion Style for pipes 1” and up

ADDITIONAL BENEFITS (Pressure Independence) 15 Data Points at 110 psig (BP), than same output, even at 0 psig (No Back Pressure)

THERMAL MFM ADVANTAGES (OVER OTHER SPECIFIC TECHNOLOGIES) u Temperature and Pressure measurement needed on Vortex, Turbine, Positive Displacement, Orifice, etc. to obtain Mass Flow u Coriolis expensive and has large head loss u All above have limited turn-down (poor low-end sensitivity) and have substantial pressure drop u Turbine and Positive Displacement have moving parts (may need frequent maintenance) u Insertion Style meters not available on above technologies (except on some Vortex models)

SAGE METERING A PIONEER IN TECHNOLOGY DEVELOPMENT u Brought to Market the Hybrid Digitally. Driven bridge (vs Wheatstone bridge) u Introduced In-Situ Calibration Verification at No Flow (0 SCFM) u First u Lead Graphic Display in TMFM Industry Length Compensation on Remote Style (up to 1000 Ft)

SAGE METERING TECHNOLOGY BENEFITS u Hybrid-Digital u Provides eliminates analog drift a reproducible zero point u Maintain higher resolution and greater rangeability u Improved temperature compensation (digital drive eliminates self-heating) u Match overheat to application

EXTRAORDINARY TEMPERATURE COMPENSATION

SAGE COMPETITIVE ADVANTAGES SUMMARIZED OVER OTHERMAL u u u u Hybrid-Digital In-Situ Cal Check Higher Resolution Greater Rangeability Better Temp Comp Adjustable Overheat Lead-Length Compensation OVER OTHER TECHNOLOGIES u u u u Direct Mass Flow (No need for separate T&P) 100 to 1 Min Turndown Very Low-End Sensitivity Negligible Pressure Drop No Moving Parts Dirt Insensitive Ease of Installation

SAGE TM PRIME Our Top Selling Flow Meter!

TM INTRODUCING SAGE PRIME u PRIME REPRESENTS 80% OF ALL SALES u HIGH CONTRAST ORGANIC LEDS (OLEDS) – Graphical Display with Flow Rate, Total and Temp – Photocell activated Screen Saver-extends display life – Displays Calibration Milliwatts (mw) for ongoing diagnostics and In-Situ Calibration Check u RUGGED DUAL-SIDED NEMA 4 ENCLOSURE – Large easy-to-access terminals – clearly marked – Lightweight and attractively designed – UL & CSA approved (24 VDC) and CE compliant – Powered from 24 VDC, 115 VAC/230 VAC or 12 VDC

DUAL COMPARTMENT (Separate Rear Enclosure) u Sage Prime has a dualcompartment windowed enclosure featuring a very high contrast photo-emissive OLED display u The rear compartment, which is separated from the electronics, has large, easy-to-access and well marked terminals, for ease of customer wiring

SAGE PRIME TERMINALS

SAGE PRIME ORGANIC LED (OLED) DISPLAY

SAGE PRIME DISPLAY CLOSE-UP u HIGH CONTRAST OLEDS VISIBLE EVEN IN SUNLIGHT u GRAPHICAL DISPLAY – DISPLAYS PCTG OF FS RATE u FLOW RATE IN ANY UNITS (PER SEC, MIN OR HOUR) u TOTALIZES UP TO 9 DIGITS, THEN ROLLS OVER u DISPLAYS TEMPERATURE IN ºF OR ºC u CONTINUOUSLY DISPLAYS RAW MILLIWATTS (mw) FOR ONGOING DIAGNOSTICS (In-Situ Calibration) u DIAGNOSTIC LEDS FOR POWER AND MODBUS

TM SAGE PRIME KEY FEATURES u POWERFUL STATE-OF-THE-ART MICROPROCESSOR TECHNOLOGY – Hybrid-Digital sensor drive circuit – Provides enhanced signal stability – Excellent temperature compensation – Extraordinary reproducibility – Low power dissipation, under 2. 5 watts (<100 m. A at 24 VDC) – Ideal for Solar Power u VARIETY OF OUTPUT SIGNALS – Isolated or ground based 4 -20 m. A of Flow Rate – Pulsed outputs of Totalized Flow – Modbus® compliant RS 485 communications – Field reconfigurable with Addresser software

SAGE PRIME REMOTE BRACKET* *Also supplied with SRE Enclosures

IN-SITU CALIBRATION CHECK & DEMO – 3 EASY STEPS Loosen, Lift, Look

IN-SITU CALIBRATION CHECK FOR SAGE INSERTION THERMAL MFMs 3 -Easy Steps

IN-SITU CALIBRATION CHECK FOR SAGE Step 1 – “Loosen”

IN-SITU CALIBRATION CHECK FOR SAGE Step 2 – “Lift”

IN-SITU CALIBRATION CHECK FOR SAGE Step 3 – “Look”

IN-SITU CALIBRATION EXPLANATION u The reason sage can perform the In-Situ Calibration Check, is due to the meter’s extraordinary reproducibility, even at a “No Flow” (0 SCFM) condition u This reproducibility is a direct result of having developed a hybrid-digital method of driving the sensors vs the drift prone Wheatstone bridge u Essentially, the customer can recreate an identical data point to that taken at Sage, at the one condition they can accurately reproduce – “No Flow” (0 SCFM) u See Section 4 in Binder for further information

SAGE ZEROING CHAMBER (USED TO GENERATE A “NO FLOW” CONDITION)

RAW NIST FLOW DATA AND LINEARIZATION

LINEARIZED DATA IS STORED AS COEFFICIENTS

SAGE VIDEO IN-SITU CALIBRATION CHECK u http: //www. sagemetering. com/ in-situ-calibration-video. html

FCI VIDEO Veri. Cal IN-SITU CALIBRATION DEMONSTRATION (ST 100) u http: //www. fluidcomponents. co m/Industrial/News/ST 100 Verical. asp

INTRODUCING SAGE CLEAR THERMAL MFM FOR GASES Packed with Features – yet Affordable

SAGE CLEAR DESCRIPTION u The Sage Clear is an economical Thermal Mass Flow Meter featuring a bright, high contrast, photoemissive OLED display of Flow Rate, Total and Temperature in a lightweight NEMA 4 enclosure u Clear has large, easy-to-access, well marked terminals for ease of customer wiring. It is powered by 24 VDC (or optionally 115/230 VAC) and includes a built-in power switch. The power dissipation is under 2. 5 watts (e. g. , under 100 ma at 24 VDC)

SAGE CLEAR FEATURES u u u Economical packaging Calibration mw continuously displayed – for ongoing diagnostics & In-Situ Calibration Check Photocell activated screen saver – extends display life Proprietary digital sensor drive circuit provides enhanced signal stability & is unaffected by process temperature & pressure changes Remote Style has Lead-Length compensation – up to 1000 feet to Junction Box & its terminals

CLEAR OPPORTUNITIES u PURSUE LARGE QUANTITY BIDS u HELP SATISFY CUSTOMERS WITH TIGHT BUDGETS u OFFER ALTERNATIVE TO OUR LESS QUALIFIED COMPETITORS WHO COMPETE ON PRICE ALONE u OBTAIN MORE OEM END USERS

INTRODUCING SAGE PRISM PORTABLE DATALOGGING MASS FLOW METER Recipient of Flow Control 2011 Innovation Award

SAGE PRISM PORTABLE BATTERY OPERATED DATALOGGING TMFM

SAGE PRISM OVERVIEW u The versatile Sage Prism™ combines our innovative digital technology for Gas Thermal Mass Flow Measurement with extensive datalogging capability and portability The ergonomically designed Prism portable operates up to 10 hours on a built-in rechargeable lithium-ion battery, and can capture up to 3800 data points of gas flow in up to 99 different pipes u Shipped with 3 separate gas calibrations (up to 16 Field Configurable u

SAGE PRISM FEATURES u CAPTURES UP TO 3800 POINTS – Auto Logs every 10 seconds – or Manual Logging (display flashes w/Log) u DISPLAYS ALL PARAMETERS – Numerical and Graphical Flow Rate & Temp – Log #, Time & Date Stamps – Channel ID (A-P) and 8 Character Label – Optional Tag ID (99 Tags) and its Label u RECONFIGURABLE W/KEYPAD or LAPTOP – Includes free Addresser software u DATA OUTPUTS TO EXCEL FORMAT

PRISM INITIALLY HAS 3 CHANNELS u 3 CALIBRATIONS (CHANNELS A, B, C) INITIALLY SHIPPED – Configure for different pipes – Configure for different gases – Configure for different combinations of pipes & gases u 16 CHANNELS AVAILABLE – Copy data from existing Channels and create new Channels – Change Units, or put in K-Factors for different CH 4/CO 2 mix u USE SAGE ADDRESSER FOR FIELD RECONFIGURATION u CHANNEL MODE FOR CHANGING CHANNELS u TAG MODE FOR SELECTING TAGS (Up to 99 PIPE IDs)

PRISM OPENING SCREEN

PRISM KEYPAD SCREEN

CHANNEL A and LOG DATA

UP ARROW TO CHANNEL B

EXAMPLE OF CHANNEL G

TAG MODE TAG #01

UP ARROW TO TAG #02

MEETING CONTINUES WITH NEW SESSION

SAGE VS COMPETITION u SAGE METERING SALES TRENDS u VIEW OF OUR COMPETITORS

THERMAL MFM ADVANTAGES (OVER OTHER SPECIFIC TECHNOLOGIES) u Temperature and Pressure measurement needed on Vortex, Turbine, Positive Displacement, Orifice, Pitot Tube, etc. to obtain Mass Flow u Coriolis is very expensive and has large head loss (also sizing challenging) u All above have limited turn-down (poor low end sensitivity) and substantial pressure drop u Turbine and positive displacement have moving parts (may need frequent maintenance) u Insertion Style meters not available on above technologies (except on Pitot Tube and some Vortex models)

OTHERMAL MANUFACTURES u u u u FCI (FLUID COMPONENTS INT’L SIERRA INSTRUMENTS KURZ INSTRUMENTS ENDRESS+HAUSER MAGNETROL FOX THERMAL INSTRUMENTS ELDRIDGE PRODUCTS

THEIR STRENGTHS & WEAKNESSES (also see Handout) u FLUID COMPONENTS, INT’L u SIERRA INSTRUMENTS u KURZ INSTRUMENTS u FOX THERMAL INSTRUMENTS u ENDRESS+HAUSER - Poor Flow Response and Low-End Sensitivity and Temp Comp +Excellent Marketing; Oldest & Most Well Known TMFM - Boiler Trak is Inexpensive, but very Fragile; Focuses on MFCs +Excellent Marketing; Well Known; Innovative - Has complicated Software; Weak Sales & Marketing +Technically very Competent; Strong in Power Industry - Poor Low-End Sensitivity; Reports of Drift; Small Company +Stays “Under the Radar”; is Knowledgeable of Projects - Draws 16 Watts of Power (vs 2. 5 Sage); Too Diversified +Strong Global Company with lots of Resources

SAGE VERSUS THERMAL COMPETITORS u PIONEERED NUMEROUS INNOVATIONS – Introduced a hybrid-digital method of driving the sensors (vs the traditional driftprone Wheatstone Bridge) – Sage is the only TMFM Manufacturer that provides an "In-Situ Calibration Check" that assures that the Meter still retains the original NIST Calibration – Lead-Length Compensation up to 1000 ft on Remote Style - yet Junction Box has no electronics – just terminals

THE SAGE ADVANTAGE - BENEFITS u BENEFITS OF PROPRIETARY TECHNOLOGY – Enhanced signal stability – Improved temperature compensation – Greater sensitivity to flow changes and improved resolution – Fast Response Time to Flow Changes – Ability to digitally adjust the dynamic operating range of the meter for specific process conditions

ADDITIONAL BENEFITS (Extraordinary Temperature Compensation)

DEMOS OF THE COMPETITORS

ROLE PLAYING Selling against the Competitors

NEW SESSION

MEETING CONTINUES WITH NEW SESSION

ELEMENTS OF SUCCESS u INNOVATIVE u FOCUS PRODUCTS ON PROVIDING VALUE u ON-TIME DELIVERY u DEDICATED PERSONNEL ……. and

ELEMENTS OF SUCCESS u EXTRAORDINARY u STRONG CUSTOMER SERVICE COMMITMENT TO QUALITY u RESPONSIVE u CONDUCT TO REPS & CUSTOMERS BUSINESS HONORABLY

And all of this leads to ….

SAGE GROWTH

SAGE GROWING MARKET SHARE

SAGE METERING, INC. We thank you for your time and attention, and welcome the opportunity to assist you with your gas flow application For additional information, please visit our website at www. sagemetering. com (User’s name: “sage”; Passcode for the O & M Manual is 7243737)