1. EPC & Alliances

2. PONTICELLI REASONSTYPES Interview of Philippe LECOIS Business Development Manager

3. EPC & Alliances PONTICELLI REASONSTYPES Founded in 1921 PONTICELLI Frères is the major French mechanical contractor Thanks to a highly skilled manpower, PONTICELLI Frères has been able to develop both in France and abroad its activities in the following fields : Construction works : Piping prefabrication and erection

4. EPC & Alliances PONTICELLI REASONSTYPES Machining works Lifting/rigging Equipment erection

5. EPC & Alliances PONTICELLI REASONSTYPES Maintenance : - Maintenance management (sizing of maintenance activities, technical data- base management, maintenance documentation drafting & management) - Total maintenance contracts (long-term, incentive based, multi-skilled) - Large shutdowns

6. EPC & Alliances PONTICELLI REASONSTYPES Turnover : 500 Millions d' Euros Manpower: 5000

7. PONTICELLI REASONSTYPES EPICC: Engineering, Procurement, Installation, Construction and Comissioning ≈ Turn-Key EPC: Engineering, Procurement and Construction A common form of contracting arrangement within the construction industry

8. EPC & Alliances PONTICELLI REASONSTYPES Under an EPC contract, the contractor: Design the installation, Procure the necessary materials Construct it, Carries the project risk for schedule as well as budget in return for a fixed price, called Lump sum or LSTK Construction risk too great for the contractor Preference of the owner to do the construction himself Either through own labour or by subcontracting part of the work EP or E+P contract

9. REASONS PONTICELLITYPES EPC & Alliances Reduction of risks for the contractor Criterias to analyseYes?No? Client Client’s process Technologic know-how Country Finance Delay Ressources Turn a « No » into a « Yes »

10. REASONS PONTICELLITYPES EPC & Alliances Criterias to analyse0 to 4 Client Client’s process Technologic know-how Country Finance Delay Ressources TOTAL??? 0 : less risks … 4 : more risks 0<TOTAL<14 comfort zone 15<TOTAL<28 risky zone Expectations of a decrease in margin

11. REASONS PONTICELLITYPES EPC & Alliances Live up to clients' expectations in terms of Security Term Quality Cost Economic intelligence Each companiesAlliances SpecificitiesCommon goal GoalsTemporary Strategy ≠

12. TYPES PONTICELLIREASONS EPC & Alliances Buying a service Subcontracting More elaborate than buying Provide ressources locally or a specific technical know- how Made after the command with the clients

13. TYPES PONTICELLIREASONS EPC & Alliances Consortium Consortium between Ponticelli ( 40%) Saipem et and Desicon For Total An association of two or more, companies, organizations or governments with the objective of participating in a common activity GME (Groupement Momentané d’Entreprises)

14. TYPES PONTICELLIREASONS EPC & Alliances Consortium Share of the risks No share of the ressources and benefits Reduce the costs Apply together for the call for tenders Might be interdependent Common responsibility or All responsibilities given to representative

15. TYPES PONTICELLIREASONS EPC & Alliances Joint Venture JV between Imer, Ponticelli and Suez, for a Mitsubishi Heavy Industries An entity formed between two or more parties To undertake economic activity together Equity

16. TYPES PONTICELLIREASONS EPC & Alliances Joint Venture Only exists fiscally No existence legally Share of ressources, costs and margins Temporary In France: « Société En Participation »

17. TYPES PONTICELLIREASONS EPC & Alliances The Project Manager: guarantee security meet the deadline ensure quality control the costs Must plane, organize, and manage ressources Need technical knowledge and understand all the players

18. Thank you Any Question?