fluor corporate overview -...

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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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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


Tasnee SAP Polymers - EPC


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


Ma’aden/Alcoa Aluminum Complex

Overall Project – PMC

Mine & Refinery – EPCM

IIP (offsites) - EPCM

Rolling Mill – PMC

Operations Readiness


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


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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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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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

FLUOR CONFIDENTIAL

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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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Supplier Pre-Qualification Program

FLUOR CONFIDENTIAL

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Process

Online

Questionnaire

Facility Evaluation

Pre-Qualification

Report

FLUOR CONFIDENTIAL

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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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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

http://www.fluor.com/

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