HSE focus in all we do. health, safety, environment

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1 HSE focus in all we do health, safety, environment

2 FMC Technologies goal is to be the leading provider of technology solutions and services to the Energy Industry. Our progress towards achieving that goal is measured not only in the dollars of revenue we earn or in the quality and innovation of the products and services we provide, but also in how we protect the health and safety of our employees, reduce the impact of our operations on the environment and support our communities. Health, safety and environmental (HSE) excellence has always been a core value of FMC Technologies. Over the past several years, our results clearly demonstrate our ability to continue to deliver a strong HSE performance, even in periods of significant change. This includes global expansion of our businesses, complex HSE challenges related to construction of new facilities, more temporary and full-time employees and the current global economic downturn. These changes have also affected the way we do business. Whereas our company once centered on manufacturing, the focus has now broadened to encompass service, outsourcing and technology. Those factors, coupled with increasing demand from our customers, have resulted in more functions that must have a good understanding of HSE risks and liabilities. In 2008, we completed another year of outstanding performance, including a new record for lost workday incidents. Though a focus on incidents is a critical component in managing an effective HSE culture, we know there are other areas than can have an equal or greater impact on our total performance. To promote a more comprehensive awareness and focus on our key initiatives, we also defined four long-term objectives in 2008 that include: I am proud of our industry-leading performance. In this report we would like to share with you some of the ways we are striving to accomplish our long-term objectives and maintain an HSE focus in all we do.

3 HSE vision HSE focus in all we do Our policy FMC Technologies accepts our responsibility to protect the environment and the health and safety of our employees, their families and the public. HSE is a core value of the corporation and will be managed as an integral part of our business to benefit employees, customers, employees are responsible for ensuring that we achieve continuous and measurable improvement. We will: Steven W. Ward and occupational health, employee safety and the environment. HSE management system elements incidents. considerations a priority in manufacturing existing products and planning for new products, facilities and processes. laws and regulations. natural resources efficiently and intelligently. partners to promote responsible management of products and processes. suppliers, customers, neighbors and shareholders regarding health, safety and environmental issues. This policy will be enabled through corporate standards guided by our HSE Management System, and appropriate business or site policies and management plans that establish objectives and targets. Implementation will be achieved through management and organizational commitment, allocation of sufficient human and capital resources and rigorous measurement and corrective systems. our growth and success. The safety of our employees and customers is paramount. We all benefit by leading our industry in health and safety performance, and by conducting our business in an environmentally friendly manner.

4 Corporate profile Our HSE Commitment Our long-term goals Our plan of action What we accomplished Our performance (NYSE:FTI) is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment measurement solutions and marine loading systems for the oil and gas industry. Our promise To maintain an HSE culture that reflects the highest ethical standards and values HSE as a priority in everything that we do. maintain In addition to specific HSE objectives, executive management will establish an HSE agenda for each site visit. meetings. We refer to this as an HSE Moment. Conduct employee perception surveys as needed to gain and receive more detailed information to understand safety culture and identify areas for improvement. pressure test activities and incident reviews. HSE Moments are now being conducted at the majority of our meetings. We establish standards to operate in the safest manner possible, promote employee health and protect the environment. To understand our customers business and develop technology and service solutions that help them overcome their most difficult challenges. We put you first. And keep you ahead. To achieve an injury-free workplace. Total Recordable Incident Rates (TRIR) and Lost Workday Incident Rates (LWIR) will be maintained at levels better than the top oil and gas services companies. Incident rates for 2008 were 0.57 for TRIR and 0.06 for LWIR. This compares to an average of 0.77 for TRIR and 0.23 for We are committed to delivering value to our customers through partnership and reliability, efficiency and performance in every business segment and in every location where we operate. We have a total of 93 manufacturing and service sites that are included in our HSE audit program. Of these, 44 sites are located within the United States, and the remaining 49 are international sites located in Europe, achieve Sites are required to achieve and maintain compliance at 90% or greater with our HSE Management System. Formal behavioral observation programs will be in place at all sites to identify and prevent at-risk behavior that can lead to incidents. High-risk activity assessments will be completed for all sites. Most FMC Technologies sites conduct behavioral observations, and our 2008 HSE Management System audits included an assessment of site behavioral processes. This resulted in additional training and renewed efforts to improve the overall effectiveness of our observation programs. HSE Golden Rules, was initiated in It includes 12 areas that represent the highest potential risk for employees. Sites will be implementing this procedure and conducting formal risk assessments over the next three to five years for the areas that have the greatest risk for their work environment Recordable Incidents Lost Workday Incidents Companies * Incident rate is calculated as the number of incidents / 200,000 hours worked * * Incident rate is calculated by the number of incidents per million miles driven. Financial highlights Total revenue* $ 4,550.9 Income from continuing operations* $ Common stock price range $ To ensure that incidents that have the highest potential for serious consequences are identified and actions are taken to prevent recurrence. ensure lost workday, near miss, first aid, environmental) will be developed that utilizes our internal risk matrix. Incidents falling into a high-risk or red shaded area of the matrix will be thoroughly investigated and formal action plans established to prevent recurrence. equipment, working at heights and the lifting of heavy equipment. This has led to improvements in global procedures, better equipment design, training and increased communications. One of our high risk areas is pressure testing of equipment. To address this area, a global forum was conducted in 2008, training. sites to investigate incidents, especially high risk red incidents. Red Incident Rate * 0.39 * Incident rate is calculated as the number of incidents / 200,000 hours worked. psi/bar HSE focus in all we do Number of employees 9,800 * In millions To prevent damage to the environment, preserve our resources and mitigate environmental risks. prevent CO2 emissions, hazardous waste and recycling. environmental risks, energy usage, CO2 emissions, hazardous waste and recycling. Environmental data has been collected for It includes energy usage, CO2 emissions, hazardous waste and recycling. The 2008 data will be used as a baseline for determining our long-term environmental improvement targets. The majority of our large sites have established environmental projects during the past three years in one or more of the following areas: energy conservation, recycling and waste reduction. Energy Usage Green Sources CO2 Emissions Hazardous Waste Recycling 0.03 kwh / $ Sales 35% of Total Energy 0.03 lbs CO2 / $ Sales lbs / $ Sales 17% of Total Waste Source: Information based on internal reporting and has not been verified by a third party. A strong Health, Safety & Environmental (HSE) culture is essential to the success of our company. FMC Technologies has established a strong foundation for HSE that includes a relentless pursuit for protecting our employees, customers, the communities where we do business and the environment. HSE will remain an even more important issue as we prepare to meet the challenges of the future. Steven W. Ward Corporate Director, Health, Safety and Environment Site Milestones Site milestones based on million hours worked without a lost-time incident 1 million 2 million 3 million 4 million 5 million 6 million 7 million Corpus Christi, Texas Ellerbek, Germany Nusajaya, Malaysia Integrated Service Sites millions of hours worked without a lost-time incident Lafayette, Louisiana Jakarta, Indonesia Sens, France Macae, Brazil Subsea Systems Customer Support Singapore Material Handling Solutions Tupelo, Mississippi Material Handling Solutions Stephenville, Texas

5 FMC Technologies Inc 1803 Gears Road Houston TX