Kbr, Inc. · NYSE:KBR

Kbr — Jefferies 2019 Industrials Conference

18 slides from Kbr's conference presentation, Aug 7, 2019

  1. Slide 1: Jefferies 2019 Industrials Conference

    Jefferies 2019 Industrials Conference August 7, 2019 The future, designed and delivered. ©2019 KBR Inc. All Rights Reserved.

  2. Slide 2: Mark Sopp and Byron Bright

    Mark Sopp Executive Vice President and CFO Byron Bright President, Government Services US Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  3. Slide 3: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this presentation, the words “estimates,

  4. Slide 4: KBR | Executing our Strategy

    KBR | Executing our Strategy  Delivering disciplined growth; strong market outlook and pipeline  Partnering with customers to develop and provide digital solutions  Fostering a culture of teamwork and safety  Delivering on our financial commitments 4 Proud history, bright future. ©2019 KBR Inc.

  5. Slide 5: Government Solutions

    Government Solutions Critical Differentiators Diverse Customer Base Diverse Funding Streams ~$4B  Deep domain expertise  U.S. Department of  International 2019  Mission critical services Defense  RDT&E Revenue (est.)  Large scale & complex  U.K. Ministry of Defence  O&M environments  NASA /

  6. Slide 6: Technology Solutions

    Technology Solutions Expand Technology Portfolio Increase Scope Offerings Expand Geographically ~$0.3B  Petrochemical & ethylene  Brownfields &  Global presence 2019 Revenue  Refining and gasification revamps  Prioritize sales efforts (est.)  Ammonia, nitric acid and  PEQ, catalysts and in gr

  7. Slide 7: Energy Solutions

    Energy Solutions Full Life Cycle Capabilities Expanded Services Portfolio LNG Experts ~$1.3B  Design and concept  Reimbursable  Recognized leader 2019  Pre-FEED and FEED construction  Access to all leading Revenue (est.)  Engineering,  Downstream and gas LNG technologies procurement, monetiza

  8. Slide 8: Quality catalysts for profitable growth

    Quality catalysts for profitable growth 10-14% Base 2019 – 2022 KBR Revenue CAGR 8 Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  9. Slide 9: YTD 2019 Highlights

    YTD 2019 Highlights $ in millions, except EPS Revenues Adjusted EBITDA1 Adjusted EBITDA  Growth fueled by industry leading organic growth in favorable markets Margin $223 ‐ 20% top line revenue growth $2,762 $183 • 30% growth in GS, 19% organic 7.9% 8.1% $2,305 • 38% growth in TS, all organic ‐ EBI

  10. Slide 10: 2019 Full-Year Guidance and Long-Term Targets

    2019 Full-Year Guidance and Long-Term Targets FY 2019 Guidance GAAP EPS $1.29 - $1.44 14-18% Base Adjusted EPS1 $1.58 - $1.73 Adjusted EPS CAGR Effective Tax Rate 23% - 25% Operating Cash Flow $175M - $205M 2019-2022 long-term targets Revenue CAGR, organic 10-14% EBITDA margin Upper single % Adjuste

  11. Slide 11: Growth Outlook

    Growth Outlook Our Pursuit Pipeline 2019-22 Revenue Growth Profile New business: ~27% Our robust pursuit pipeline affords $120B significant growth opportunities. $68B $22 $24 One LNG project: ~10% $40 $56 Today’s book of business: ~63% Our recurring, long-term contracts $6 $40 provide stability and

  12. Slide 12: Capital structure and deployment priorities

    Capital structure and deployment priorities Guiding principles 2019-22 | Operating Cash Flow Targets Maintain low capital intensity Continued improvements to maximize cash flow Balanced liquidity profile Maximize shareholder value on a per share basis Capital deployment priorities Fund organic growt

  13. Slide 13: Capital Structure and Liquidity

    Capital Structure and Liquidity Gross 3.4x Leverage 3.3x 3.2x 3.1x 2.9x Net 1.8x Leverage 1.7x 1.4x 1.4x 1.5x 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Cash $ 519 $ 581 $ 739 $ 708 $ 611 Gross debt 1,078 1,169 1,336 1,334 1,295 TTM adjusted EBITDA1 316 353 412 436 452 43% TTM EBITDA growth and discipl

  14. Slide 14: KBR… a growth and value story

    KBR… a growth and value story  Strong Growth… revenue growth underpinned by industry leading organic growth in GS and TS  Predictable Performance… 10 consecutive quarters of meeting or exceeding expectations  Cash Focus… strong 2019 net income to operating cash conversion of 92%; reducing leverag

  15. Slide 15: APPENDICES

    APPENDICES Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  16. Slide 16: Appendix: Backlog Trend

    Appendix: Backlog Trend $ in millions $13,602 $13,824 $13,495 $13,481 $13,497 $13,157  Majority of KBR backlog is currently associated $1,601 $2,144 $1,898 $1,898 $2,280 $2,635 Energy Solutions with long-term, reimbursable, PFI and/or $423 $544 $594 $10,342 $10,570 $509 $547 $500 Technology service

  17. Slide 17: Non-GAAP Reconciliations: Adjusted EPS

    Non-GAAP Reconciliations: Adjusted EPS Adjusted EPS Reconciliation Adjusted EPS Guidance Quarter Ending 2Q18 2Q19 2019 Guidance EPS (Diluted) $0.31 $0.34 EPS (Diluted) $1.29 $1.44 Add Back: Add Back: Legacy Legal Fees 0.02 0.01 Legacy Legal Fees 0.06 Non-cash imputed interest on conversion option 0.

  18. Slide 18: Non-GAAP Reconciliation: Consolidated, Adjusted and TTM Adjusted EBITDA

    Non-GAAP Reconciliation: Consolidated, Adjusted and TTM Adjusted EBITDA EBITDA is defined as earnings before interest income / expense, income taxes, other non-operating income / expense (including FX) and depreciation & amortization. Adjusted EBITDA Reconciliation Quarter Ending Sep 30, 2017 Dec 31

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