Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 1 of 6 PageID #: 1192
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`Exhibit B
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`Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 2 of 6 PageID #: 1193
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`Flowmeter Worldwide Outlook
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`
`M A R K E T A N A L Y S I S A N D F O R E C A S T
`T H R O U G H 2 0 1 5
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`
`Project Team:
`Allen Avery
`Wil Chin
`
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`
`
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`

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`Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 3 of 6 PageID #: 1194
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`Copyright  2011
`ARC Advisory Group
`All data contained in this report are proprietary to and copyrighted by ARC Advisory Group and
`no part of it may be reproduced or published, orally or in written form, or distributed in either
`original or reproduced form to anyone outside the client's internal organization within five (5)
`years of the report date without prior written permission of ARC Advisory Group.
`
`
`
`Market Forecast Updates
`ARC has provided five year forecasts in order to show long-term trends in this marketplace. To-
`day, however, the outlook for any market can dramatically change due to rapidly changing
`technology and global economic conditions. ARC typically updates our long-term forecasts peri-
`odically as required. Therefore, we recommend that clients obtain the latest market information
`from ARC before making any important decisions. ARC does not recommend clients to use the
`market forecast data beyond two years for future business planning.
`
`
`
`Disclaimer
`While every effort has been made to ensure the accuracy and the completeness of the information
`presented in this report, ARC Advisory Group accepts no liability what so ever for consequences
`of any actions taken upon the findings of the report.
`
`
`
`Report Follow up Services
`An ARC industry report, while comprehensive, cannot possibly answer every question or pro-
`vide all information desired by each and every client. In order to ensure that our clients have
`access to ARC's data base and consulting staff, we provide follow up services at cost. The goal of
`this program is to provide clients with additional data and analysis which are of specific interest.
`We hope that through the use of these services our clients will have the best possible information
`for making decisions and developing strategies. Naturally, questions that are procedural, or in-
`volve clarification of methodology or definitions, are welcome at no charge to subscribers.
`
`Telephone us at 781-471-1000 or email at info@ARCweb.com and tell us the information you de-
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`is recommended that clients seek a quote in advance.
`
`

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`Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 4 of 6 PageID #: 1195
`Flowmeter Worldwide Outlook
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`
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`Figure 3-14
`Leading Suppliers of Flowmeters for Oil & Gas
`
`
`2010 Revenues = $267.6 Million
`
`
`
`Emerson Process Management
`
`45.1%
`
`General Electric
`
`12.9%
`
`KROHNE
`
`9.6%
`
`Endress+Hauser
`
`Yokogawa
`
`6.5%
`
`5.6%
`
`Siemens
`
`2.8%
`
`0.0%
`
`10.0% 20.0% 30.0% 40.0% 50.0%
`
`
`
`
`
`Other = 17.5 Percent
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`
`Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • 45
`
`

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`Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 5 of 6 PageID #: 1196
`Flowmeter Worldwide Outlook
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`Figure 3-17
`Leading Suppliers of Flowmeters for Refining
`
`
`2010 Revenues = $108.3 Million
`
`
`
`Emerson Process Management
`
`38.4%
`
`General Electric
`
`15.2%
`
`KROHNE
`
`10.6%
`
`Yokogawa
`
`8.0%
`
`Siemens
`
`Endress+Hauser
`
`5.8%
`
`4.9%
`
`ABB
`
`2.0%
`
`0.0%
`
`10.0% 20.0% 30.0% 40.0% 50.0%
`
`
`
`
`
`Other = 15.1 Percent
`
`
`48• Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
`
`

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`Case 6:12-cv-00799-JRG Document 26-4 Filed 02/11/13 Page 6 of 6 PageID #: 1197
`Flowmeter Worldwide Outlook
`
`used as a billing meter, maintenance requirements, and production costs,
`due to the inaccuracy of older mechanical technologies. Installing modern,
`intelligent flowmeters can help organizations reduce these costs through
`improved metering accuracy in custody transfer applications, eliminating
`the need to take meters offline for inspection and overhaul, and reducing
`feedstock usage during the production process.
`
`Volatile Markets
`Volatile markets cause disruptions to every industry. For instance, fluctua-
`tions in the price of oil and commodities can fundamentally shift operating
`and investment priorities. When the price of oil is too high, for example,
`projects downstream in the chemical industry get delayed. And when the
`price of oil is low, oil projects are held back.
`
`Shipments by Flowmeter Type
`
`Coriolis flowmeter revenues will grow at slightly above average rates, due
`in part to the higher average selling price per unit, but more to the perva-
`sive use of Coriolis meters in the chemical industry, and the increasing
`demand for large meters for oil & gas offloading at marine terminals, the
`emerging use of compressed natural gas (CNG) as a transportation fuel,
`and steady growth in the food & beverage industry.
`
`Ultrasonic meters will see the highest growth rates during the forecast peri-
`od. The role of highly accurate spool piece ultrasonic meters in custody
`transfer applications in the LNG and oil & gas upstream and midstream
`sectors will boost revenues significantly; as such models carry high price
`tags. Clamp-on ultrasonic meters, the most common configuration, are ar-
`guably the ultimate retrofit and check meters, as they can be installed
`permanently or temporarily without penetrating pipes or interrupting the
`process. Ultrasonic meters are broadly applicable, particularly in power
`generation, where they can be used to measure non-conductive power plant
`feed water.
`
`Magnetic flowmeters, due their low average selling price, will see slower
`revenue growth over the forecast period. The largest market segment
`among flowmeters, magnetic meters have broad applicability in the chemi-
`cal and water & wastewater markets. In mining applications, magnetic
`flowmeters are ideal for erosive applications such as the measurement of
`tailing when suitable polyurethane or ceramic lined meters are used.
`
`58• Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only