Engineering Risk Managementecrisponsor.org/presentations/lo17-15 - Jean-Claude Air Liquide.pdf · Agenda 1. Air Liquide Group overview 2. Engineering & Construction brief presentation

ENGINEERING& CONSTRUCTION

Date

Name & Function • Department

Doc

Title •

THIS DOCUMENT IS CONFIDENTIAL RESTRICTED AIR LIQUIDE, THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH ITHIS DOCUMENT IS CONFIDENTIAL RESTRICTED

June 2017Air Liquide Engineering & Construction

Engineering& Construction Risk Management

ECRI June 2017

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April 2017

Air Liquide Engineering & Construction •

THIS DOCUMENT IS CONFIDENTIAL RESTRICTED Air Liquide, the world leader in gases, technologies and services for Industry and Health

Air Liquide Engineering & Construction presentation 2

Agenda

1. Air Liquide Group overview

2. Engineering & Construction brief presentation

3. E&C Enterprise Risk Mngt

4. E&C Project Risk Mngt & lessons learnt

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Air Liquide Engineering & Construction presentation

Air Liquide Group

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Air Liquide Group : profileThe world leader in gases, technologies and services for Industry and Health

The world leader in gases, technologies and services for Industry and Health, Air Liquide ispresent in 80 countries with approximately 67,000 employees and serves more than 3 millioncustomers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life,matter and energy. They embody Air Liquide’s scientific territory and have been at the core ofthe company’s activities since its creation in 1902.

Air Liquide’s ambition is to lead its industry, deliver long-term performance and contribute tosustainability. The company’s customer-centric transformation strategy aims at profitablegrowth over the long term. It relies on operational excellence, selective investments, openinnovation and a network organization implemented by the Group worldwide. Through thecommitment and inventiveness of its people, Air Liquide leverages energy and environmenttransition, changes in healthcare and digitization, and delivers greater value to all itsstakeholders.

Air Liquide’s revenues amounted to € 18.1 billion in 2016 and its solutions that protect life andthe environment represented more than 40% of sales.

Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, Euro STOXX 50 and FTSE4Good indexes.

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2016 Key figures(Following the acquisition of Airgas on May 23rd, 2016)

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~67,000EMPLOYEES (1)

Present in

80COUNTRIES

Revenue

€ 18.1BILLION (2)

Net profit

€ 1.844BILLION

More than

3 MILLION

CUSTOMERS

& PATIENTS

(1) As of December 31st, 2016.

(2) Excluding Welding and Diving, restated as discontinued operations.

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The world leader ingases, technologies and services for…

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INDUSTRY

● wide range of industrial processes for customers:

– energy, metals, food, chemicals, automotive, pharmaceuticals…

HEALTH

● hospitals

● patients at home

● hygiene and specialty ingredients

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One business, several activities

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The Air Liquide business is founded on technicaland scientific expertise in essential smallmolecules for life, matter and energy, as well ason recognized operational know-how. Today,around 67,000 employees are working toward theshared goal of the Group’s sustainabledevelopment, driven by a true entrepreneurialspirit and the unrelenting desire for innovationthat better serves our customers.

Air Liquide’s value creation model works byintegrating and sharing our industrial assets.

This efficient industrial system brings Air Liquide closer to its customers so that it can anticipate their needs and offer them innovative solutions. The Group currently serves more than 3 million customers and patients from a wide range of sectors.

Human resources, industrial assets, innovation, and technologies – these strengths combine to enable Air Liquide’s growth and long-term value creation for all its stakeholders.

Refining/Steel/Chemicals/Energy Refining Steel Chemicals

Materials& Energy

Automotive & Manufacturing

Food & Pharmaceuticals

Professionals& Retail

Technology& Research

Specialtyingredients

Hygiene

Homehealthcare

Medicalgases

Flat panels

Photovoltaic

Semi-conductors

Maritime

Advanced technologies

Energytransition

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Group revenue

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GAS & SERVICES

96%Industrial Merchant

Large IndustriesElectronicsHealthcare

2016Revenue (1)

€18.1bn

ENGINEERING& CONSTRUCTION

2%

GLOBAL MARKETS& TECHNOLOGIES

2%Markets:Energy transition, Aerospace,Extreme cryogenics, Maritime

(1) Excluding Welding and Diving, restated as discontinued operations.

Air Separation Units

Hydrogen/CO production units

Technologies

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Air LiquideEngineering & Construction

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A technology-driven organization

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Patents

1,600

Proprietary technologies

60Engineering centers and

front end offices

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Manufacturing centers

3

Key figures

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Our expertise

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WITHIN AIR LIQUIDE GROUP

● Design and build Group’s industrial gas production units

– Solution oriented towards our gas customers

– Plant life-cycle optimization

– Supporting operations

● Sustainable and competitive technology & process solutions

– Industrial gases (O2, N2, H2, CO, CO2, rare gases)

– Energy conversion and clean fuels

– CO2 capture

– Gas conditioning and purification

– Leveraging Group’s operation experience

FOR OUR EXTERNAL

CUSTOMERS

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Full coverage of the entire project life cycle

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Process TechnologyConceptual & Front-End

Engineering Design Integrated Solutions

Licensing engineering services &

proprietary equipment

High-end engineering & design

capabilities

Project management and execution

services

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Product lines managing our technology portfolio

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Standard PlantsDownstream & PetrochemicalsCryogenic

s

Hydrogen

Customer Services

Hydrocarbons Oleochemicals

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Our technology portfolio

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● Standard Plants

● Cryogenics

● Hydrogen

● Syngas

● Petrochemicals

● Natural Gas Treatment

● Sulfur

● Liquefied Natural Gas

● Oleochemicals

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Health, Safety, Environment & Security (HSES)

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Our HSES goal is to achieve zero accidents and zero environmental incidents by:

Providing a secure work environment

Preventing all injuries, damage to the environment and damage to property

Identifying and reducing risks and exposure to hazards in a sustainable way

Improving our HSES performance continuously

Enforcing Air Liquide Life Saving Rules

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Our locations worldwide

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CalgaryMontrealHouston

VitryChampignyFrankfurtKrakowKievMoscow

New Delhi

BeijingHangzhouShanghaiKobeSeoul

Johannesburg

Ras Al KhaimahAbu DhabiDubai

SingaporeKuala Lumpur

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THIS DOCUMENT IS PUBLIC Air Liquide, the world leader in gases, technologies and services for Industry and Health


Discover more:www.engineering-airliquide.com

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http://www.engineering-airliquide.com

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Air LiquideEngineering & ConstructionEnterprise Risk Mngt

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ITHIS DOCUMENT IS CONFIDENTIAL RESTRICTED AIR LIQUIDE, THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH

Air Liquide Engineering & Construction presentation April 2017


The 3 Steps Risk Management Process (‘RMP’)

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Segmentation of ext’l / int’l risks

Probability

Impact

1- MAPPING

Industrial

Financial

Human resources

Etc.

3- MITIGATION

No progress

Contrasted progress

Satisfactory progress

Action plan progress

Action plan prioritization

Group priorities

Initia

l

Development

Matu

rity

Excellence

Components to consider

2- ASSESSMENT

4 level scale

Organization

competencies

Policies

Procedures

Rules,

standards

KPIs / IS

Audits

Controls

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I AIR LIQUIDE, THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH THIS DOCUMENT IS ••CONFIDENTIAL-RESTRICTED

April 2017

Air Liquide Engineering & Construction •Air Liquide Engineering & Construction presentation 20

ERM process

Actio

n P

lan

& K

RI’s

Monitoring / actions re-

definition

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Business Portfolio

UnbalanceWorkload Unbalance

Availability &

competenciessustainability

Project Execution

Contractual risks

Quality Control

Suppliers Reliability

Internal control

efficiencyPiloting

Business PracticesFatal

Accident at AL facilities

ProtectionOf

SensitiveData

Protection of AL

Employees

Air Liquide PRIORITIES

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Air LiquideEngineering & ConstructionProject Risk Mngt& Lessons Learnt

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Project Risk Management Process

Selection of prospects

Proposal work

Risk Analysis

Risk Board

ERC

Contract Award

Concentrate on relevant bidsMaturity/Reality of prospectPotential profitsE&C chances to win

Provide recommendationsChallenge mitigationsReview contingency levelValidate before OfferWhen low level of risk

Validate before OfferRisk Review by Corporate Sr Mngt when high level of risk

G&S

Thresholds

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Risk management process - Tool boxes

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Lessons Learnt

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What makes a

successful project &

why

● Real Time capitalization● Management support● Appropriated Staffing ● Humility● Right estimate● Client Management● Right Engineering phase● Local market understanding

What makes a disaster

● Move out of the comfort zone● ...and Imagine we can do without

preparation● Blame the team ● Forget our weaknesses● Not being realistic (or pessimistic) enough

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What’s next?

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● Big data

● Real Time connectivity

● Experience sharing

● Lighter tools -> Culture

Documents

Engineering Risk Managementecrisponsor.org/presentations/lo17-15 - Jean-Claude Air Liquide.pdf · Agenda 1. Air Liquide Group overview 2. Engineering & Construction brief presentation