Investor Presentation June 2015 Stuart Bradie President and Chief Executive Officer Brian Ferraioli EVP and Chief Financial Officer Zachary Nagle VP, Investor Relations
KBR Overview KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries. More than 100 year proud history. 360 in Fortune 500 rankings. 25,000…
KBR Overview Company recently undertook a strategic review and the plan is underway. Going forward, focus will be on differentiated offerings in core markets / clients with emphasis on global hydrocarbons and international…
Structure Streamlined / Focused Old KBR operating segment structure (16 business units) KBR Infrastructure, Gas Hydrocarbons Government & Services Operations Monetization Power New streamlined operating segment structure (5…
KBRs Business Groups Technology & Consulting Engineering & Construction Government Services Proprietary Technologies Offshore EMEA Upstream Fixed Platforms Home Base Operational Semi-submersible hull Floating Facilities Support…
Strategic Priorities Priority Markets Early project involvement Global Hydrocarbons & via differentiated International Government technology & specialized Services consultancy services 1 2 Re-focus Growth Strategy 3 4…
Framework to Support Core Focus Exit non-strategic businesses: One KBR: - Stand-alone Fixed Price EPC Power Consistent use & application of - Fixed Price U.S. Infrastructure & standard policies, processes, systems, U.S. Minerals…
Q1 Summary Significantly improved earnings versus 2014. Strategy on track to achieve targeted margins and cost savings by Y/E 2016. More than 100M savings identified and actioned to-date; will be realized throughout 2015. Two mega…
Consolidated Results: Q1 2015 vs Q1 2014 Quarter Ending Commentary ( in millions, except EPS) Mar 31, 2015 Mar 31, 2014 Revenues declined from completion of N.A. construction and Bookings 899 559 Canadian module assembly projects…
Segment Reporting: Q1 2015 vs Q1 2014 Revenue T&C reflects mix shift to more technology services and less proprietary equipment; E&C reflects completion of certain N.A. Quarter Ending construction and module assembly projects, and an…
Cash / Capital Allocation KBR Cash Balance Return of Cash to Shareholders ( in millions) Q1 2015 Q4 2014 ( in millions) Q1 2015 Since Jan-07 Domestic 181 200 Share Repurchases 16 747 International 499 690 Dividends 12 251 JV 78…
Market Outlook: Technology & Consulting Technology market opportunities led by ammonia, refining, olefins & other chemicals received a significant order for license, basic engineering and pre-FEED work for a series of ammonia plant…
Market Outlook: E&C Q1 awards supporting strategic focus areas: Yara / BASF grassroots ammonia complex, EPC award. BG Alliance partnership award for front end project development. Saudi Aramco - long term agreement for Offshore Oil &…
Market Outlook: E&C (Continued) Good pipeline of near-term and long-term prospects: Increased focus on Middle East opportunities (refining and petrochemicals). Award of Technical Services and EPC Pricing for potential appx. 2 billion…
Market Outlook: Government Services U.K. Army re-basing Client confirmed intention to contract with existing KBR JV for facilities construction, subject to satisfactory negotiation. Award expected in 3Q 2015. Strong operational…
Summary Significantly improved earnings vs 2014. KBRs restructuring remains on track to deliver 200 million in annual cost savings by 2016 and gross profit and equity in earnings margin percentages: T&C low 20s. E&C upper single…
Appendix
Consolidated EBITDA Reconciliation 1Q 2015 Quarter Ending ( in millions) Mar 31, 2015 Mar 31, 2014 Net Income Attributable to KBR 44 (43) Add Back: Interest Income (Expense) (2) (2) Provision for Income Taxes (19) (21)…
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