Slide 1: Delivering Solutions, Changing the World
Stuart Bradie, President and CEO DELIVERING SOLUTIONS, CHANGING THE WORLD. Mark Sopp, Executive VP and CFO Alison Vasquez, VP of Investor Relations
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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,”
Slide 3: Stuart Bradie, President and Chief Executive Officer
// Stuart Bradie President and Chief Executive Officer D E L I V E R I N G S OL U T I O N S , C H A N G I N G T H E W O R L D . D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E WO R LD. 3
Slide 4: ESG Framework
RECYCLE/ HEALTH SAFETY REUSE & SECURITY EFFICIENT GOVERNANCE ENERGY SUSTAINABLE INCLUSION & TRAVEL DIVERSITY SUPPLY COMMUNITY PARTNERS ENGAGEMENT CLIMATE RISK CHANGE MANAGEMENT D E L I V E R I N G S OL U T I O N S , C H A N G I N G T H E W O R L D . 4
Slide 5: 2021 ESG Scorecard
2021 ESG Scorecard D E L I V E R I N G S OL U T I O N S , C H A N G I N G T H E W O R L D . 5
Slide 6: Continued Momentum Toward 2025 Growth Targets
CONTINUED MOMENTUM TOWARD 2025 GROWTH TARGETS ▪ Delivering robust revenue growth, earnings expansion, and free cash generation ▪ Winning attractive awards in strategic areas to deliver the future ▪ Deploying capital across organic growth, strategic M&A, and return of capital to shareholders ▪ Initia
Slide 7: Market Outlook: Government Solutions
MARKET OUTLOOK GOVERNMENT SOLUTIONS MARKET DRIVERS AND OUTLOOK TRENDS, WINS & MOMENTUM The proposed 2022 U.S. defense spending budget prioritizes investments to address near-peer threats, enhance cyber security strategy, increase military space priority, and $6.7B 1.3X FY 2021 AWARDS 4Q 2021 BTB str
Slide 8: Market Outlook: Sustainable Technology Solutions
MARKET OUTLOOK SUSTAINABLE TECHNOLOGY SOLUTIONS MARKET DRIVERS AND OUTLOOK TRENDS, WINS & MOMENTUM Accelerating demand for technology and solutions to enable energy transition, including leveraging blue and green $1.1B 1.1X ammonia as a hydrogen energy enabler. FY 2021 AWARDS 4Q 2021 BTB 1.4X in Her
Slide 9: Robust Pipeline Underpins Growth Momentum
ROBUST PIPELINE UNDERPINS GROWTH MOMENTUM KBR Pursuit Pipeline $7.8B FY 2021 AWARDS AND OPTIONS $45B Lead 1.2X $44B 4Q 2021 BOOK-TO-BILL Positioning & Pursuit $12B Proposal and Negotiation 150+ PURSUITS > $100 MILLION $101B TOTAL 10+ PURSUITS > $1 BILLION D E L I V E R I N G S OL U T I O N S , C H A
Slide 10: Mark Sopp, Executive Vice President & Chief Financial Officer
// Mark Sopp Executive Vice President & Chief Financial Officer D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E WO R LD. 10
Slide 11: FY 2021 Financial Snapshot
FY 2021 FINANCIAL SNAPSHOT Revenues Adj. EBITDA1 Adj. EBITDA1 Margin $7,339 27% 31% $625 growth growth $5,767 9% $478 8% FY20 FY21 FY20 FY21 FY20 FY21 Adj. EPS1 Adj. OCF1 Backlog $319 40% $290 10% $5B $2.42 Capex Options $4B Capex AOCF growth growth $1.73 $289 $270 Free cash Backlog $15B $15B Free c
Slide 12: FY 2021 Segment Results
FY 2021 SEGMENT RESULTS In millions GOVERNMENT SOLUTIONS SUSTAINABLE TECHNOLOGY SOLUTIONS CORPORATE Revenue Adj. EBITDA1 Revenue Adj. EBITDA1 Adj. EBITDA1 $6,149 9% $1,712 11% $538 $4,055 $427 16% $1,190 6% $191 $(104) $111 $(60) FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 ▪ 52% growth in GS r
Slide 13: Capital Deployment Priorities
BALANCED CAPITAL DEPLOYMENT & HEALTHY LIQUIDITY PROFILE Moody’s Highlights in the Year ▪ Moody’s upgraded KBR rating to Ba2 S&P ▪ S&P upgraded KBR rating to BB CAPITAL CREDIT RATING ▪ Completed funding of Frazer Nash acquisition INCREASES ▪ DEPLOYMENT Completed $78 million of share repurchases PRIOR
Slide 14: FY 2022 Guidance
FY 2022 GUIDANCE FY 2022 Guidance 70%+ Consolidated revenue $6.3B to $6.8B WORK UNDER CONTRACT Adjusted EBITDA1 margin ~10% FY 2022 Adjusted EPS1 $2.45 to $2.60 ▪ FY 2022 guidance is on pace with or above KBR 2025 long-term targets Effective tax rate 24% to 25% ▪ FY 2022 guidance does not reflect th
Slide 15: In Summary
IN SUMMARY D O I N G W H AT W E S A I D W E WO U L D D O ▪ Accelerating demand for KBR solutions and technology aligned with accelerating global market dynamics ▪ Highly differentiated commercial and international footprint positioned to deliver growth and stability ▪ Balanced capital deployment, fo
Slide 16: Q&A
Q&A D E L I V E R I N G S OL U T I O N S , C H A N G I N G T H E W O R L D .
Slide 17: Appendices
APPENDICES D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E WO R LD.
Slide 18: Non-GAAP Reconciliations: Adj EPS and Adj OCF
Non-GAAP Reconciliations: Adj EPS and Adj OCF Adjusted EPS FY 2020 FY 2021 FY 2022 Guidance Actual Actual EPS (Diluted) $(0.51) $0.12 $2.04 $2.19 Add Back: Amortization related to acquisitions 0.14 0.28 0.19 Ichthys interest and commercial dispute costs 0.12 1.64 0.10 Acquisition, integration and re
Slide 19: Non-GAAP Reconciliation: Adj EBITDA
Non-GAAP Reconciliation: Adj EBITDA Adjusted EBITDA 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 TTM Net income (loss) attributable to KBR ($104) ($39) $52 $19 $47 ($152) $55 $68 $18 Add Back: Interest Expense 23 19 18 23 22 23 23 24 92 Provision (benefit) for income taxes (1) 6 19 2 16 40 19 33 108 Othe
Slide 20: Non-GAAP Reconciliations: Segment Adj EBITDA
Non-GAAP Reconciliations: Segment Adj EBITDA Government Solutions Adjusted EBITDA 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Net income (loss) attributable to GS $90 $93 $97 $71 $74 $90 $112 $133 Add Back: Interest Expense 0 0 0 1 1 1 1 (1) Other non-operating (income) expense 0 1 0 1 0 (1) 1 3 Depreci
Slide 21: Non-GAAP Reconciliations: Segment Adj EBITDA
Non-GAAP Reconciliations: Segment Adj EBITDA Reconciliation of Operating Income to Adj. EBITDA Twelve months ended December 31, 2021 Government Sustainable Corporate Total KBR Solutions Technology Solutions Operating Income $413 ($31) ($151) $231 Noncontrolling interest 1 (9) 0 (8) Depreciation & am
Slide 22: Non-GAAP Reconciliations: Adj EBITDA Margin
Non-GAAP Reconciliations: Adj EBITDA Margin FY 2022 Guidance for Adjusted EBITDA Margin Mid Pt of Guidance Adjusted EPS (at the midpoint of the guided range) $2.53 Multiplied by expected share count 141 Adjusted Net Income $357 Plus: Depreciation & Amortization 130 Plus: Interest expense 80 Plus: Pr
Slide 23: Selected Recast 2020 Income Statement Information
Selected Recast 2020 Income Statement Information Unaudited 1Q20 2Q20 3Q20 4Q20 FY20 Revenues: The following 2020 quarterly and Government Solutions $ 982 $ 953 $ 1,013 $ 1,107 $ 4,055 annual unaudited, condensed Sustainable Technology Solutions 555 432 366 359 1,712 income statement information Tot