Welcome Jason Landkamer Director of Investor Relations 2011 Fluor Corporation 1
Agenda 1:00 pm Welcome Jason Landkamer 1:10 pm Corporate / Financial Overview David Seaton / Biggs Porter 1:30 pm Government Bruce Stanski 1:50 pm Operations Overview Peter Oosterveer 2:10 pm Power Matt McSorley 2:30 pm BREAK…
Safe Harbor Statement Any forward-looking statements (including without limitation statements to the effect that the company or its management believes, expects, anticipates, plans, or other similar expressions) made in this…
HSE Topic Proper PPE While On a Job Site Geoff Telfer Vice President, Financial Planning and Investor Relations 2011 Fluor Corporation
Site Safety & Personal Protective Equipment (PPE) 5 2014 Fluor Corporation
PPE Gear required at Site Clothing Long-sleeve shirts and long pants Safety vests or approved safety colored shirts No loose clothing or jewelry Rings can cause extreme damage Head Protection All visitors and employees are…
PPE Gear at Site Hearing Protection Hearing protection is required on site at all times This PPE includes earplugs, canal caps, and or earmuffs based on noise decibels Eye Protection Eye protection is required at all times on…
PPE Gear at Site Hand Protection Protective gloves are required at all times Gloves should not be too tight or too loose Gloves should be inspected before each use Foot Protection There are many different types of foot PPE.…
Things to Remember Every job function in every department is assessed for hazards Each part of the body is taken into consideration during assessments PPE is selected in response to specific hazards Proper wear and care of PPE is…
Value Creation Fluor Innovation Driving Capital Efficiency Nicole Davies Director, Office to the Chairman 2011 Fluor Corporation
Value Creation Topic: 3rd Gen Modular ExecutionSM 11 2014 Fluor Corporation
Value Creation Topic: 3rd Gen Modular ExecutionSM 12 2014 Fluor Corporation
Value Creation Topic: Welder Training Centers 15 2014 Fluor Corporation
Fluor Builds Video 16 2014 Fluor Corporation
Corporate Overview David Seaton Chairman and CEO 2011 Fluor Corporation
Fluor Profile A leading Engineering, Procurement, Construction and Maintenance Services (EPCM) company Integrated solutions delivery model Long term global presence and mega-project experience Diversified across energy, industrial…
Fluor Organization Chairman & CEO David Seaton Business Chief Government Project Development Operating Group Support & Strategy Officer Services Peter Dave Dunning Oosterveer Bruce Stanski Garry Flowers Chief Legal…
Commercial Business Line Overview 2014 Fluor Corporation
Areas of Strength Integrated One Fluor approach Oil and Gas petrochemical, upstream and downstream Infrastructure road, bridge and rail projects Mining iron ore, copper, gold, nickel and aluminum Government Department of Energy,…
Strategy Overview Global Trends Primary global drivers Urbanization and prosperity fuels demand for clients Government regulation Capital efficiency requirements leading to modular, controlled construction solutions Competitors…
Growth Strategy EPCM Services Integrated Solutions Delivery Company Company STRATEGIC IMPERATIVES Fabrication, Supply Chain, Vertical Integration Self-Perform Construction Functional Re-Alignment One Fluor Mindset This…
Recent Accomplishments Early successes in LNG market (Kitimat, Anadarko) Significant share of U.S. petchem market (Dow, CPChem, Sasol) Backlog up 16% y-o-y; Record Oil & Gas backlog up 41% Strengthened global supply chain Expanded…
Backlog Growth 42.3 in Billions Power Global Serv. Govt. I&I O&G 14.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 28 2014 Fluor Corporation
Backlog - 42.3 Billion Geography Contract Type 33% 28% 18% 82% 9% 30% United States The Americas Reimbursable Fixed Price Europe, Africa and the Middle East Asia Pacific 29 2014 Fluor Corporation
Segment Profit Nine Months Ended 2013 2014 892 M 916 M 6% 9% 6% 10% 1% 2% 33% 44% 36% 53% Oil & Gas Power Upstream, Downstream, Petrochemicals Gas, Coal, Nuclear, Renewables Industrial & Infrastructure Global Services…
2014 Year to Date Financial Performance Nine months ended ( in millions, except EPS) 9/30/2013 9/30/2014 Revenue 21,060 16,076 Segment Profit 892 916 Net Earnings* 501 495 EPS (diluted) 3.05 3.08 New Awards 19,311 22,543…
Company Financial Objectives Achieve shareholder return expectations Earnings and cash, earnings and cash Deliver capital structure to support growth & access to financial resources Balance Sheet and credit standing as a competitive…
Return of Capital ( in millions) 1.8 billion in share repurchases and 478 million in dividends since 1/1/10 Cash Returned to Shareholders Return of Capital / Net Earnings % 1,000 150% Dividends Share Repurchases 122% 125% 120%…
Summary New awards: 6.0 billion in 3Q Prospects and FEED activity remain strong Strong growth in Oil & Gas segment 3Q Profit up 65 percent y-o-y Large prospects including upstream, downstream, petrochemical and LNG Backlog 42.3…
Government Group Bruce Stanski President, Government Group 2011 Fluor Corporation
Government Revenue & New Awards Revenue New Awards 4.5 3.4 3.3 4.0 in Billions in Billions 3.0 3.7 2.7 3.2 2.8 1.8 2010 2011 2012 2013 Q3 2014 2010 2011 2012 2013 Q3 2014 YTD YTD 36 2014 Fluor Corporation
Government Business Lines 37 2014 Fluor Corporation
US Government Market in 2014 38 2014 Fluor Corporation
Government Revenue by Customer Current Future 5% 8% 9% 11% 48% 46% 39% 34% Department of Defense Department of Energy International Other 39 2014 Fluor Corporation
Government Market Dynamics Shifting Customer Strategies & Priorities Overseas Contingency Global Contingency Provider Hardware Services & Infrastructure Big Military Special Operations Long-Term Programs Measurable…
LOGCAP Operation United Assistance Libreville Dakar 72-hour deployment Training,execution, and exit protocol Voinjama Zorzor Daily coordination Bopolu with multiple Monrovia constituencies Totota Accra Harbel Ganta…
Strategic Petroleum Reserve Commercially-proven Smart Plant and reliability-centered maintenance 3-D laser scanning/equipment mapping for construction tie-ins and drawings Commercial craft training center and pre-qualified…
Magnox/Research Sites Restoration Limited 28customer program milestones supported by 124 Fluor project milestones Specificwork activities Hunterston Chapelcross for repeatable solution delivery Discrete cost savings…
Growth Platform The Value Chain 44 2014 Fluor Corporation
Operations Overview Peter Oosterveer Chief Operating Officer 2011 Fluor Corporation
EPCM to an Integrated Solutions Company Transformation from a EPCM company to an Integrated Solutions Company What are Integrated Solutions One Stop shop solutions including; Engineering, Supply Chain, Fabrication, Construction…
EPCM to Integrated Solutions Provider Fluor Traditionally One Fluor Project Management Project Management Engineering Engineering Procurement Supply Chain strategic sourcing Construction Management Procurement Fabrication…
Fully Integrated Solutions Model CLIENT CENTRIC FOCUS Capital Efficiency Schedule Predictability ENGINEERING & SUPPLY CHAIN PROCUREMENT STRATEGIC SOURCING FULL EPFC PROJECT DELIVERY SELF PERFORM MODULAR CONSTRUCTION…
Distributed Execution Overview of distributed execution strategy Performing collaborative engineering on a Global basis, creating a virtual project team In a distributed execution model, a Fluor office acts as a lead office and the…
Distributed Execution Actual Project Example Fort McMurray 400,000 Calgary MHs New Delhi 300,000 MHs Benefits of Distributed Execution Improved Utilization, Retention, Quality and Client Satisfaction Improved Efficiency &…
Global Supply Chain 51 2014 Fluor Corporation
Global Fabrication/Modularization Capability Supreme Fab Yard Freeport, Texas ICA Fluor Fab Yards AGP Fluor Dow PDH Gulfstream Project Modules 52 2014 Fluor Corporation
Self Perform Construction Worldwide GLOBAL SUMMARY Craft 10,000 Staff 11,000 JV Self-Perform 18,000 JV Contractor 22,000 Countries with construction activities indicated in yellow Contractor 37,000 Average Total 98,000 53 2014…
Fluor Self Perform Construction with AMECO Example of Fluor Self Performed Construction along with AMECOs support on the Dow Gulfstream project AMECO is supplying Fluor with more than 1000 pieces of equipment and scaffolding services…
Integrated Solutions provider - Example How we benefit by providing a Integrated Solutions ( Actual project example ) PROJECT RISK MANAGEMENT ENGINEERING & PROJECT DELIVERY PROCUREMENT FULL EPFC GM MODULAR…
Operations Overview Summary Key markets increasingly demand Integrated Solutions Integrated Solutions will significantly contribute to Growth Fluor differentiators for Integrated Solutions Current Service Offerings Human Capital…
Power Matt McSorley President, Power 2011 Fluor Corporation
Current Portfolio of Projects LS Power Centinela Solar LCRA Ferguson Replacement Duke Energy Lee Steam Station Duke Energy Citrus County South Carolina Electric & Gas 60 2014 Fluor Corporation
Current Portfolio of Projects (cont.) Dominion Brunswick County Dominion North Anna 3 AEP Northeastern ENEC Barakah Piping Maintenance and outage work 61 2014 Fluor Corporation
Regulatory Impact and Timing REGULATION DESCRIPTION STATUS IMPACT TO BUSINESS Coal Combustion Establishes Final rulemaking expected Only affects coal plants Residuals Rule (CCR) requirements for the December 2014 May lead to…
2015 Prospects & Opportunities Power Services Nuclear New Build, MI Nuclear New Build & Gas Fueled, Environmental Growth of current PJM Grid Compliance Gas Fueled, accounts United Kingdom MISO New prospects across the U.S. Solar…
One Fluor Cross-selling with Oil & Gas and Mining Co-Generation facilities Dedicated power facilities Regional intelligence and contacts Geographic Reach 64 2014 Fluor Corporation
NuScale Small Modular Reactor (SMR) 2011 Fluor Corporation
NuScale Addressable Market US Market 70 to 80 GW of plants targeted for retirement by 2030 At least seven electric utilities considering SMRs as a replacement DOE endorsement and funding of NuScale NuScales first customer targeting…
Why NuScale Comparison to other technologies NuScales capital cost structure has been validated by an independent review and by several US electric utilities Most passively safe technology in response to the Fukushima events…
Fluor Mining & Metals Profile Extractive, non-renewable Industry with significant secondary processing Industry dominated by 15 to 20 large global public Global companies and handful of state enterprises Primacy of our approach to…
Major EPC/CM projects 2006 2014 Saudi Arabia: Mongolia: Canada: Oyu Tolgoi Maaden Refinery Highland Valley EPCM 3 B EPCM 5B EPC 0.6 B Maaden Rolling Mill Mt. Milligan EPCM 0.6 B EPCM 1.2 B Moscow Vale Long Harbour Australia:…
BHPB Iron Ore Projects Since 2001, a Fluor led JV has managed and executed the Rapid Expansion Program (RGP) in Western Australia Iron Ore Capacity Increase from 67Mtpa to 237Mtpa Our Scope/Responsibility was 19.3B over this…
BHP BILLITON IRON ORE PORT HEDLAND INNER HARBOUR NELSON POINT 2014 Fluor Corporation
BHP BILLITON IRON ORE YANDI MINE PROJECT 2014 Fluor Corporation
Cerro Verde II Arequipa, Peru Worlds Largest One-Time Constructed Copper Concentrator - 240,000 tpd Capacity Freeport McMoran (FMI) Fluor performed initial study work and currently executing EPCM 25year continuous relationship…
CERRO VERDE 2 SITE CV2 Site CV1 Site 2014 Fluor Corporation
CERRO VERDE 2 SITE 2014 Fluor Corporation
Mining & Metals 2015 and Beyond Key Demand Side Considerations Social Migration and meeting the aspirations of worlds urbanising population will continue to be a significant demand overlay Key Supply Side Considerations Depleting…
Mining & Metals 2015 and Beyond Clients Clients continue to reflate balance sheets but many are eager to enact growth plans Sweat the assets continues to be mantra Expect greater capital discipline by clients Economy/GeoPolitics…
Mining & Metals 2015 and Beyond Near Term Focus on Copper, Iron Ore and Aluminum Increased consumption driving need for new mines Opportunities are capital intensive, logistically complex and remote We have seen increased study…
Mining & Metals Key Prospects Russia Canada - Gold, Copper, Platinum Copper & Potash EPCM FEED, EPC United States Aluminum EPC/CM USA Copper, Gold EAME EPC/CM Saudi Arabia NORTH Phosphates, Gold Mongolia Copper AMERICA…
Industrial Services Business Line Profile EPC Engineering Industries Procurement Life Sciences (Pharmaceutical & Biotechnology) Construction Management Advanced Materials Self-perform construction Fast Moving Consumer Goods…
Industrial Services EPCM/CV AstraZeneca (formerly MedImmune) Location: Frederick, Maryland Scope: EPCM TIC: 300M Baxter Blood Fractionation Location: Covington, GA Award Date: 2010 Scope: CM TIC: 1.2B 86 2014 Fluor…
Industrial Services EPCM/CV Hexcel Location: Multiple U.S. locations, UK Award Date: 2004-present Scope: EPCM TIC: aggregate 1B+ Showa Denko Location: Ridgeville, SC Award Date : 2011 Scope: EPC TIC: 250M 87 2014…
Industrial Services Continuous Site Presence Procter & Gamble Location: 16 U.S. sites Award Date : 40+ year relationship Scope: construction and supplemental maintenance Avg. Annual Rev: 100M Rio Tinto Iron Ore Location:…
Industrial Services Continuous Site Presence GDF Suez Hazelwood Location: Australia Award Date : 1997 (16+ years) Scope: maintenance and repair Avg. Annual Rev: 50M IBM Location: various U.S. locations Award Date : 2008…
Industrial Services Key Prospects Fast Moving Consumer Goods Oil & Gas EPCM Maintenance Europe Canada Advanced Materials Life Sciences EPC Engineering United States Ireland Food & Beverage EAME EPC United States NORTH…
Infrastructure Business Profile Focus on Road/Bridge and Rail projects in North America for public clients Typically contract Design Build, Design Build/Finance and PPP Fluor is a preferred partner Strong Balance Sheet Renowned…
Recent Projects Tappan Zee Hudson River Crossing DB Tarrytown, New York Eagle P3 Commuter Rail Line DBFOM Denver, Colorado Horseshoe Project DB Dallas, Texas 95 Express Lanes DBF Northern Virginia A9 Holendrecht DBFOM…
Signature Projects 94 2014 Fluor Corporation
Tappan Zee Bridge 3.1 billion design build Fluorled team consisting of Fluor, Traylor Bros, Granite Const. & American Bridge Construct the new main span, approaches and The largest single bridge project in NY history landings…
I-95 700M PPP project Fluor led team consisting of Fluor and Lane Construction 29 miles of express (HOT) lanes 91% complete. Opening scheduled for mid-December 2014 96 2014 Fluor Corporation
Infrastructure 2015 & Beyond Large Market Much of US Infrastructure nearing end of service life Average age of bridges is 42 years service life is 50, some 20B per annum for next 16 years needed Opportunities show a good mix of DB…
Infrastructure Prospects Illiana Corridor (Illinois DOT) I-70 East (Colorado DOT) Illinois Portion Colorado South Mountain Freeway, SR 202 Phoenix, Arizona US 183 Bergstrom Expressway (Texas DOT) Austin, Texas Purple…
Oil & Gas Jose Bustamante Senior Vice President Business Development, Energy & Chemicals 2011 Fluor Corporation
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