KBR, Inc. · NYSE:KBR

KBR — Q1 2015 Earnings Presentation

14 slides from KBR's earnings presentation, Apr 29, 2015

  1. Slide 1: Q1 2015 Financial Results

    Q1 2015 FINANCIAL RESULTS April 29, 2015 Stuart Bradie – President and Chief Executive Officer Brian Ferraioli – EVP and Chief Financial Officer Zachary Nagle – VP, Investor Relations

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding our plans, objectives, goals, strat

  3. Slide 3: KBR HSE Performance

    KBR HSE Performance 5-Year TRIR Performance 0.50 0.39 0.39 0.37 0.40 0.35 0.30 0.30 0.34 0.35 0.35 0.32 0.20 0.26 0.16 0.23 0.21 0.19 0.10 0.00 2010 2011 2012 2013 2014 2015 400 KBR TRIR OGP Top Q OGP Average 364 350 300 12-Month Rolling TRIR 250 234 0.50 200 0.40 0.41 150 0.30 0.37 0.32 0.20 100 77

  4. Slide 4: Q1 Summary

    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 LNG projects continue to perform well and are expected to re

  5. Slide 5: Consolidated Results: Q1 2015 vs Q1 2014

    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 and reduced activity on Backlog of Unfilled Orders $ 10,287 $ 1

  6. Slide 6: Segment Reporting: Q1 2015 vs Q1 2014

    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 LNG project ($ in millions) Mar 31, 2015 Mar 31, 2014 in 2014 an

  7. Slide 7: Cash / Capital Allocation

    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 $80 Total $758 $970 Total Returned to SHs $28 $998 Key Uses o

  8. Slide 8: Market Outlook: Technology & Consulting

    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 revamps (Q2 award).  Award of Technical Services and EPC Pricin

  9. Slide 9: Market Outlook: E&C

    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 & Gas Projects.  Major reimbursable construction services awa

  10. Slide 10: Market Outlook: E&C (Continued)

    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 ammonia/urea complex in Mid-West USA.  Onshore upstream oppo

  11. Slide 11: Market Outlook: Government Services

    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 performance continues for U.K. MoD Work – long-term facilities mai

  12. Slide 12: Summary

    Summary  Significantly improved earnings vs 2014.  KBR’s 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 digits.  GS – low teens range (excluding legacy U.S. Gov

  13. Slide 13: Appendix

    Technology & Consulting Engineering & Construction Government Services

  14. Slide 14: Consolidated EBITDA Reconciliation 1Q 2015

    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) Depreciation & Amortization ($11) ($18) Consolidated EBITDA $76 ($2) Note:

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