The Art of War

1. The Art of War “If you follow the crowd, you will only get as far as the crowd goes”

2. Issue/Opportunity The Eastern Hemisphere Strategic Process is currently addressed at the Region level focusing on Imperatives and Competition Analysis by Region. This resulted in a limited understanding of our competition which inhibited our ability to deliver to our true potential set forward since the ONE Baker Hughes reorganization. Although Regions have optimized operations by focusing on cost reductions; share growth and margin performance are reaching a plateau. The competition continues to be the first mover in most strategic decisions. A leap forward requires a cross-regional competitor analysis to understand their strategies and winning tacticsacross the eastern hemisphere. Additionally, the current focus of our plan review is on short-term results and tactics. Therefore, a separate process needs to be created to provide an environment for strategic long-term discussions resulting in strategies and actions that drive stronger and competitive performance.

3. Strategic Framework – Then and Now Baker Hughes undergoes a bi-yearly process to define its corporate strategy through the SMP. This results in regional strategies which feed the corporate and technology strategies. Since the market place is dynamic, regional strategies need to be continuously re-calibrated, while competitor and customer dynamics need to be re-assessed . This results in validation or modification of imperatives allowing us to continuously improve our relative performance to our peers.

4. The Art of War – Objectives Review current regional strategies Understand the competition horizontally across Regions Validate current strategies Define clear actions to leverage/expand what we have been doing right and improve our currently unacceptable relative peer performance

5. Workshop Agenda

6. Workshop Agenda

7. SMP Update and Competition Highlights – Regions Regions will be provided by the 3rd of October with a group of selected slides from the SMP Roadmaps. Please update these slides as needed (“Calibration”) and drill deeper into the competitors’ outlook and strategies. Each region will have 30 minutes to present their regional strategy updates and an overview of the competition in their regions followed by 15 min of Q&A. Focus on what competitors are doing and their strategies in your region. “If you know yourself but not the enemy, for every victory gained you will also suffer a defeat.” – Sun Tzu

8. External Competitors Analysis – Global Marketing • Global Marketing will provide an external view of: • what the competition is doing, and • expected growth of each one of the markets and market segments. • Fernando Lopez will provide an external view of competitors trends “It is only the enlightened ruler and the wise general who will use the highest intelligence of the army for the purposes of spying, and thereby they achieve great results.” – Sun Tzu

9. Profiling the Competition – Group Work • Objectives: • Obtain a cross hemisphere view of competitors strategies – SLB, HAL & WFT • Fully understand what are their key differentiators are • Regions need to be prepared to discuss the following questions: • Where are they focusing their growth? • What are their key differentiators? • Do they have a cohesive hemisphere strategy or is it regional? • How do they compete? • What are their business models? • How are they delivering superior margins? • How are they are they perceived by customers? • How are they perceived by investors? How do they influence investors and stock price? • How do they perceive their competitors? • How do they attract talent? How are they perceived by prospect and current employees? • What is their organizational structure? • What is their management style? • What’s their position towards nationalization/expats? • How do they source their technology? • What business are they in that they are not? • How are they segmenting the market? • How do they decide where they play? • How are they partnering with customers • Are they generating JVs? What’s their M&A strategy? • What is their recipe for success? “Though the enemy be stronger in numbers, we may prevent him from fighting. Scheme so as to discover his plans and the likelihood of their success.” – Sun Tzu

10. Logistics Venue Palace Hotel, Dubai for lodging and all meetings The Palace Downtown Dubai Emaar Boulevard, The Old Town Island, Downtown Dubai P.O. Box 9770, Dubai, UAE T: +971 4 4287888 F: +971 4 4287999E: info@thepalace-dubai.com Prepare to arrive no later than Sunday afternoon 21st of October. The meeting starts at 18:00 hours with cocktails and an opening address from Belgacem, followed by dinner at Asado restaurant. Our meetings will be held in the hotel’s “Regent Meeting Room”. Dress code for meetings and dinners is casual. No BB’s, laptops, iPads, mobiles, etc. allowed in the meeting room. A separate room will be provided which can be used during breaks. You can plan your return flights from 19:00 hours onward on Wednesday the 24th of October. It is expected that you come to the meeting fully prepared to discuss anything and everything about the competitors we are focusing on (SLB, HAL, WFT). We plan to have fun but work very hard to achieve the objective set for this meeting. Who is Sun Tzu? You will learn more about him we hope….