PT201300015.pptx 1
P R O C U R E M E N T
Fluor Corporate Overview
FLUOR CONFIDENTIAL
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Executive Overview
One of the world’s leading publicly
traded engineering, procurement,
construction, maintenance, and
project management companies
#110 in the FORTUNE 500 in 2013
Over 1,000 projects annually, serving
more than 600 clients in 79 different
countries
41,000 employees executing projects
globally
Offices in 29 countries on 6
continents
Celebrated 100 years in 2012
Fluor Corporate Headquarters
Dallas, Texas
FLUOR CONFIDENTIAL
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2012 Financial Performance
Fluor Corporation
56 Years on NYSE
Revenue: $27.6 billion
New awards: $27.1 billion
Backlog: $38.2 billion
Fluor Corporation is rated at one of the higher investment grade levels:
– Long-term Ratings:
- Standard & Poors “A-”
- Moody’s “A3”
- Fitch “A-”
– Short-term Ratings:
- Standard & Poors “A-2”
- Moody’s “P-2”
- Fitch “F-2”
– Outlook:
- Standard & Poors - Stable
- Moody’s - Stable
- Fitch - Stable
FLUOR CONFIDENTIAL
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Revenue in US$ Billions
Corporate Revenue Performance
2010 2011 2012 0
5
10
15
20
25
30
27.6
23.4 20.8
FLUOR CONFIDENTIAL
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Corporate New Award Performance
New Awards in US$ Billions
2010 0
5
10
15
20
25
30
27.4
2011
26.9
2012
27.1
FLUOR CONFIDENTIAL
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Corporate Backlog Performance
Backlog in US$ Billions
2010 0
5
10
15
20
30
25
35
34.9
2011
39.5 40
2012
38.2
FLUOR CONFIDENTIAL
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Differentiators
Executing work in challenging locations
Mobilizing diverse workforces
Linking global engineering resources
Sourcing material globally
Meeting compressed schedules
Developing innovative and
cost-effective project financing
Optimizing assets over a facility’s
life cycle
Managing joint ventures and alliances
globally
Providing fabrication capabilities
Utilizing modular construction techniques
FLUOR CONFIDENTIAL
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Americas Aliso Viejo, California
Anchorage, Alaska
Arlington, Virginia
Austin, Texas
Baton Rouge, Louisiana
Buenos Aires, Argentina
Calgary, Alberta, Canada
Caracas, Venezuela
Charlotte, North Carolina
Clarksville, Tennessee
Dallas, Texas
Greenville, South Carolina
Houston, Texas
Lima, Peru
Long Beach, California
Mexico City, Mexico
Port of Spain, Trinidad
Richland, Washington
San Francisco, California
San Juan, Puerto Rico
São Paulo, Brazil
Santiago, Chile
Vancouver, B.C., Canada
Washington, D.C.
Europe/Africa/Middle East Abu Dhabi, U.A.E.
Ahmadi, Kuwait
Al Khobar, Saudi Arabia
Antwerp, Belgium
Asturias, Spain
Bergen-op-Zoom, The Netherlands
Dubai, U.A.E.
Dublin, Ireland
Durban, South Africa
Doha, Qatar
Farnborough, England
Gliwice, Poland
Haarlem, The Netherlands
Johannesburg, South Africa
London, England
Madrid, Spain
Moscow, Russia
Rotterdam, The Netherlands
Tarragona, Spain
Asia/Australia Bangkok, Thailand
Beijing, China
Brisbane, Australia
Cebu, Philippines
Jakarta, Indonesia
Manila, Philippines
Melbourne, Australia
New Delhi, India
Perth, Australia
Seoul, South Korea
Shanghai, China
Singapore
Tokyo, Japan
Years of Experience in Region North
America South
America Europe Africa
Middle East
Asia Australia
101 76 65 53 66 62 63
Worldwide Office Locations
FLUOR CONFIDENTIAL
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Outstanding Safety Performance
Fluor's combined self-perform and subcontractors' Lost Workday Case Incidence
rates are significantly better than the average rates reported by the CII.
FLUOR CONFIDENTIAL
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Comprehensive EPCM & PM Services Life Cycle for Client Capital Assets
Client
Solutions
Conceptual
Design
Estimating
Feasibility
Studies
Permitting
Process
Simulation
Project Financing
Routing
Scope Definition
Siting
Technology/
License
Evaluation
Cost Control
Detailed
Engineering
Fabrication
Front-end
Engineering
Modular
Construction
Planning &
Scheduling
Process
Simulation
Safety
Planning
Systems
Integration
Construction
Management
Contractor
Management
Craft Staffing &
Training
Equipment &
Tools Supply
Fabrication
Field Mobilization
Material Control
Modular
Construction
Project & Program
Management
Quality Control
Safety Programs
Commissioning
Engineering
Support
Initial Production
Plant Readiness
Precommissioning
Systems Checkout
Turnover
Validation
Asset Performance
Improvement
Contract Staffing
Equipment, Tools, and
Fleet Services
Facility Management
Operational Readiness
Plant Engineering
Plant Operations &
Maintenance
Small Capital Projects
Turnarounds, Outages &
Shutdowns
Contract Staffing
Contracts
Management
Equipment, Tools,
and Fleet Services
Expediting
Fabrication
Logistics
Low Cost Country
Sourcing
Materials
Management
Purchasing
Requirements
Planning
Sourcing
Supplier Quality
Warehousing
Engineering Procurement Construction Start-up Operations &
Maintenance Design
FLUOR CONFIDENTIAL
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Fluor Corporation
Fluor’s Diversified Industries
FLUOR CONFIDENTIAL
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P R O C U R E M E N T
Fluor MENA Overview
June 04 2013
FLUOR CONFIDENTIAL
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Fluor MENA Overview
In Middle East since 1947
Abu Dhabi is Regional Headquarters office for Middle East Region
Market Focus:
– Oil & Gas, Power, Petrochemical, O&M, and Infrastructure
Long-term commitment to Abu Dhabi, Kuwait, Qatar, Iraq and Saudi Arabia with dedicated local capability and access to regional resources
Commitment and support to ongoing projects
Fluor has been continuously active in the Middle East for over 60 years and in Abu Dhabi for over 30 years and has successfully delivered projects with a total value of more than $150 Billion while establishing a reputation for dependability, expertise and safety.
FLUOR CONFIDENTIAL
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Fluor MENA Overview Current and Recent Regional Projects
JORDAN
LEBANON
IRAQ
IRAN
Kingdom of Saudi Arabia
SUDAN
ERITREA
YEMEN
Kuwait EGYPT
SYRIA
EGYPT
OMAN
Qatar
UAE
Saudi Kayan/PMD
Al-Jubail, Kingdom of Saudi Arabia
Tasnee AA Project - PMC
Al-Jubail, Kingdom of Saudi Arabia
Tasnee SAP Polymers - EPC
Al-Jubail, Kingdom of Saudi Arabia
GASCO IGD-Expansion – Sty & FEED
Abu Dhabi, UAE
QatarGas Jetty Boiloff Gas
FEED/EPCM
Doha, Qatar
Shell Al Karaana Petrochemical
FEED
Doha, Qatar
ADMA-OPCO, Umm Lulu FFD - FEED
Abu Dhabi, UAE
GASCO – Habshan 4 - EPC
Abu Dhabi, UAE
KOC Services Multi-package Project
Kuwait
ADMA-OPCO, Nasr FFD - FEED
Abu Dhabi, UAE
King Abdulaziz University - PMC
Kingdom of Saudi Arabia
Al Hosn Gas Dev’t, Shah Gas Dev’t
FS, FEED, SRU Lisc., PMC
Abu Dhabi, UAE
DOW/Aramco – Sadara U&O - EPCM
Al-Jubail, Kingdom of Saudi Arabia
Ma’aden/Alcoa Aluminum Complex
Overall Project – PMC
Mine & Refinery – EPCM
IIP (offsites) - EPCM
Rolling Mill – PMC
Operations Readiness
Al-Jubail, Kingdom of Saudi Arabia
KNPC – Clean Fuels and New Refinery
FEED
Kuwait
ADMA-OPCO, SARB - FEED
Abu Dhabi, UAE
GASCO, ENRU – FS & PMC
Abu Dhabi, UAE
RasGas – O&M
Doha, Qatar
Sanapco, Chlora-alkal - PMC
Al-Jubail, Kingdom of Saudi Arabia
RasGas Common Offplots
FEED/EPCM
Doha, Qatar
ExxonMobil/SOC - (West Qurna)
Iraq – FEED/EPCM
DowPIC OL2K Petrochemical – EPCM
Kuwait
GASCO, IGD (Habshan 5) - Sty & FEED
Abu Dhabi, UAE
Octal – Petrochemical
FEED/EPCM Services
Salalah, Oman
QatarGas Berth 6 –
FEED/EPCM
Doha, Qatar
Shell GTL Project - O&M
Doha, Qatar
GASCO PIR – Sty
Abu Dhabi, UAE
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P R O C U R E M E N T
Fluor Procurement Overview
June 04, 2013
FLUOR CONFIDENTIAL
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Overview
Center-Led Procurement
FLUOR CONFIDENTIAL
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Procurement Overview
Global Procurement Resources
Asia Pacific│308 North America│1,186
Australia│45 Latin America│290
Africa / Middle East│147
Europe│188
Approximately 2,200 Procurement resources globally
FLUOR CONFIDENTIAL
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Procurement Overview
Procurement 10 Year Spend
$4.0 $3.9 $4.7
$7.6
$11.0 $10.9
$13.6
$10.3 $11.0
$17.0
$20.4
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Bil
lio
ns
Non-Project Project Materials Project Contracts Fluor Backlog
Average Commitment Each
Working Day in 2012:
$78,332,157
FLUOR CONFIDENTIAL
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P R O C U R E M E N T
Strategic Sourcing
June 04, 2013
FLUOR CONFIDENTIAL
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The PEpC Process
pROCUREMENT
ENGINEERING
CONSTRUCTION
Construction Industry Institute (CII) indicates:
4-8% cost savings
10-15% savings in time
The ability to influence the cost of a project is greatest at the beginning of a
project – bringing strategic suppliers in early is essential to success.
PROCUREMENT
Strategic Suppliers
FLUOR CONFIDENTIAL
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Fluor Supply Chain Solutions
Fluor’s Global Sourcing organization
– Manages key supplier relationships
– Provides supply-side market intelligence
– Provides strategic material and equipment sourcing solutions
– Develops strategies to help improve overall return on investment
for our clients
FLUOR CONFIDENTIAL
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Fluor’s Approach to Strategic Sourcing
Fluor’s global sourcing organization
Mechanical Rotating
Civil, Structural, Architectural
Control Systems
Pipe Fabrication
Pipe, Valves, Fittings, Flanges
Contractor Services
MRO/Construction Indirects
Mechanical Static
Logistic / Transportation
Electrical Equipment & Bulks
Commodity experts
Supports global projects
Manage supplier relationships
Collaborate on supply chain strategies
Provide supply chain market
intelligence
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Seven Step Sourcing Process
Negotiated agreements
Continuous
Improvement
Understand spend market dynamics
Develop hypothesis
Determine suppliers and screen
Path for negotiating
RFP analysis
Summary of Activities
FLUOR CONFIDENTIAL
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Optimized Project Supplier Selection
FLUOR CONFIDENTIAL
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Strategic Supplier Program Overview
Over 100 strategic supplier
agreements
– 54 suppliers have operations in
Low Cost Countries
– Additional 24 strategic suppliers
in China managed by the
Shanghai office
Agreements cover over 40
categories of capital goods and
all prime account services
Documented savings across all
categories by strategic
suppliers
– Benchmarked on Fluor spend
through strategic suppliers
FLUOR CONFIDENTIAL
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SRA Program
SRA Benefits
Higher level relationship with suppliers
– Partnering to achieve common goals
– Increased supplier integration opportunities
– Mitigation of raw material and shop space shortages
– Reduced supplier base to build strategic alliances
Benefits for Fluor clients and projects
– Pre-negotiated commercial Terms & Conditions
– Manufacturing and delivery priority
– Greater quality assurance
– Greater influence on supplier performance
FLUOR CONFIDENTIAL
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Material Market Bulletin
Market specific information and
trend analyses for select material
and equipment categories
Target audience: projects,
estimating groups, and clients
Quarterly editions focus on
supply, demand, and pricing
Focus on specific topics and
regions:
– Vol. 1 2013: Year-In-Review,
Malaysia & South Korea
– Vol. 2 2013: Business
Transformation, Brazil & South
Africa
– Vol. 3 2013: New Build Nuclear
Industry, Turkey & UAE
FLUOR CONFIDENTIAL
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P R O C U R E M E N T
Supplier Pre-Qualification Program
FLUOR CONFIDENTIAL
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Supplier Pre-Qualification Program
Process
Online
Questionnaire
Facility Evaluation
Pre-Qualification
Report
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Supplier Pre-Qualification
Improvements
– Formalize a global
program
– Developed a web-
based solution to
allow collaboration
and improve
communication
Fluor
Supplier
Pre-Qualification
Program
Buyers Suppliers
Project A
Project B
Project C
FLUOR CONFIDENTIAL
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Supplier Pre-Qualification Program
Fluor’s Suppliers by Region
Nearly 200 suppliers pre-qualified to date in emerging regions
FLUOR CONFIDENTIAL
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Fluor Supplier Central
If you have not done business with Fluor, please
register using our Supplier Central portal
– www.Fluor.com > go to Services > Procurement
• Then click the link for the Supplier Central
Registry
FLUOR CONFIDENTIAL