NOVEMBER / DECEMBER 2015 THE NEWSLETTER …

1 NOVEMBER / DECEMBER 2015 THE NEWSLETTER FOR THE EMPLOYEES, FAMILIES AND FRIENDS OF ZACHRY GROUP. COVER: Gulf Coast Partners, the joint venture between Zachry and Technip, is constructing a polyethylene plant for Chevron Phillips Chemical Company LP (CPChem). in Old Ocean, Texas. DEAR READERS, Our focus and Photo/Alissa Rosebrough commitment to It is an honor for me to share a few words with you as deliver safe, quality we conclude a tremendously exciting year at Zachry Group. work will always be the We all can see and feel an unprecedented level of activity and accomplishment throughout the enterprise.

2 More importantly, foundation to support it has become clear that, thanks to an unwavering commit- ment to doing things the right way, we are well prepared for an enduring legacy that the challenges ahead. Becoming a leader in each of us is building this robust market did not just happen. In fact, we made a commitment, years ago, to prepare for what we face today. at Zachry.. I recall my early years with the company in which we began Steve Brauer, Group President, Industrial Services to partner with engineering companies and major manufac- CONTENTS turers to deliver some of the earliest EPC power projects in the country.

3 We learned as the power market grew, and our Photo/Alissa Rosebrough leadership had the foresight to recognize that having internal engineering capacity would serve us well. As we strengthened INEOS and BASF. Zachry has been asked to perform services DEAR READERS TOP STORY KEY FEATURES work for power customers like South Carolina Gas & Electric A letter from Steve Brauer, and grew these capabilities, we also became a big buyer TOWERING HEIGHTS and Oklahoma Gas & Electric, whose previous experience Group President, Industrial Services SPOTLIGHT VALUES of critical equipment and commodities.

4 Once again, the enter- CPChem Polyethylene with Zachry was principally with our Construction Group. PAGE 3 Project Rises Up, Moves prise recognized this and invested. We now have a world class procurement organization supported by a It is especially gratifying for me to visit so many of our Toward New Phase in 2016. NEWS UPDATES cadre of outstanding fabrication shops. sites where multiple operating groups are working for the PAGE 6 same customer. This is becoming the norm, rather than As others moved their focus away from domestic work and a the exception.

5 Direct-hire model, we doubled down and re-energized our PHOTO ESSAY In this edition of the Force Report, you will see profiles of commitment to the craft workforce. We invested significantly HIGHER AND HIGHER ZACHRY AND JVIC Zachry's commitment to our customers, employees and in our safety and employment groups and developed the AT PORT EVERGLADES EMPLOYEES EMPOWERED communities that should fill you with pride! These include a best practices in the business. Zachry also committed to an Unusual Lift Required to Put TO EXERCISE massive job for Chevron Phillips Chemical in Sweeny, Texas increasingly robust petrochemical and process market.

6 Having Steam Turbine-Generator in Place STOP WORK AUTHORITY (where ISG has been providing continuous presence mainte- learned from our success in power, we expanded PAGE 12 PAGE 16 our process engineering expertise and continued to use nance support for years), and a beautiful photo essay of ZACHRY AROUND. our strong relationship-driven culture to seek out great engi- work for another long-time customer, Florida Power & Light, THE NATION SPOTLIGHT STRATEGY. neering and OEM partners to be able to execute the volume of in Port Everglades, Fla.

7 You will also read about our invest- PAGE 4 CONSTRUCTION. INDUSTRY INSTITUTE work our long-term customers needed. We further prepared ment in support of industry, community and employees ourselves for today's robust market by adding a highly through our involvement with Construction Industry Institute ZACHRY'S INDUSTRY INFLUENCE. SERVICE AWARDS regarded turnaround and specialty services business. (CII) research teams, Zachry's internship program and a EVIDENT FROM KEY ROLES IN. Third quarter 2015 nutrition and fitness initiative in our Omaha Design Center.

8 PRESTIGIOUS CONSORTIUM The decisions to transform the enterprise into what it is today PAGE 21 Our commitment to safety is reflected in an article PAGE 15 were very deliberate and took considerable planning and a on recent awards from industry associations. willingness to challenge ourselves. Above all, they required commitment: a commitment to excellence and being a valued I would like to especially highlight an article on Stop Work EQUAL EMPLOYMENT I AM ZACHRY. INTERNSHIPS partner to our tremendous portfolio of customers. The result Authority.

9 It examines Zachry and JVIC practices that OPPORTUNITY POLICY Interviews with Zeke Reyna LESSONS THAT CAN'T is that we are growing and working on some of the most empower employees to stop tasks when questions and PAGE 24. and Juan Sifuentes BE LEARNED IN SCHOOL interesting and demanding projects in the industry, bringing concerns arise relative to the ability to provide quality work PAGES 22 & 23 a depth and breadth of services unique to Zachry Group. and to execute the work safely. Our focus and commitment PAGE 18. Our customers appreciate that we committed the necessary to deliver safe, quality work will always be the foundation resources and planned in advance to be of service to them.

10 To support an enduring legacy that each of us is building at Zachry. Our commitment is rewarded by our customers. Within our We want to hear from you. Please share your feedback on Zachry Force Report or story ideas, Have a great safe day! including contact information to Industrial Services Group, we have added new customers including Valero and Motiva. We have also entered new sites FIND US ON FACEBOOK @ @ with existing customers including LyondellBasell, Monsanto, Steve 2 ZACHRY FORCE REPORT NOVEMBER / DECEMBER 2015 NOVEMBER / DECEMBER 2015 ZACHRY FORCE REPORT 3.