Slide 1: 1Q 2017 Financial Results
1Q 2017 Financial Results April 28, 2017 Stuart Bradie – President and Chief Executive Officer Mark Sopp – Executive Vice President and Chief Financial Officer Nelson Rowe – Senior Vice President, Investor Relations
Slide 2: 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,
Slide 3: Safety: Moving Towards Zero Harm
SAFETY Safety: Moving Towards Zero Harm Total Recordable Incident Rate (TRIR) Performance: 2011- Q1 2017 0.50 0.43 0.38 0.40 0.36 0.42 0.31 0.30 0.35 0.35 0.28 0.32 0.22 0.24 0.20 0.23 0.21 0.24 KBR is focused on an 0.19 0.18 0.16 industry-leading 0.10 commitment to employee safety 0.00 2011 2012 20
Slide 4: 1Q17: Highlights
1Q17 HIGHLIGHTS 1Q17: Highlights Substantial completion final domestic EPC power project in Non-Strategic Business In April 2017, settled legal claim against Pemex. Received $435M and dismissal of all pending litigation (2Q event) Settlement of major legal matters Settlement reached on class
Slide 5: Significantly Lower Risk Profile
1Q17 BACKLOG Significantly Lower Risk Profile Backlog by Contract Type ~75% of earnings for 2017 secured in backlog Cost Fixed Price Reimbursable, Majority of KBR backlog is currently either Contracts PFI & Services (GS, T&C) – long-term, reimbursable, PFI or service Contracts Low Risk contracts
Slide 6: Consolidated Results: 1Q17 vs 1Q16
RESULTS Consolidated Results: 1Q17 vs 1Q16 Quarter Ending ($ in millions, except EPS) Mar 31, 2017 Mar 31, 2016 Bookings $ 772 $ 711 1Q17 revenues reflect the impact of the two Backlog of Unfilled Orders $ 10,595 $ 12,019 GS acquisitions and organic growth in U.S gov’t contracts Revenues $ 1,106 $
Slide 7: Segment Results: 1Q17 vs 1Q16
SEGMENT Segment Results: 1Q17 vs 1Q16 RESULTS Quarter Ending ($ in millions) Mar 31, 2017 Mar 31, 2016 Government Services Revenues ‒ Increases in revenue and gross profit & equity Government Services 515 210 in earnings are driven by acquisitions and Technology & Consulting 76 97 organic growth.
Slide 8: 2017 Forward Expectations
MARKET 2017 Forward Expectations OUTLOOK Foundation for 2017 Performance Expectations: ‒ Revenue o Strong Gov’t Services growth, both organic and acquisitive along with steady T&C revenue offsetting challenging E&C market conditions o Continued expansion in global industrial services market o Stro
Slide 9: 2017 Guidance
2017 GUIDANCE EPS, excluding legacy legal fees, now expected above mid-point of $1.10 - $1.40 range – Reflects gain on Pemex settlement to be recorded in 2Q17 – Reflects organic growth for GS, T&C and OpEx projects in E&C, contraction in CapEx projects in E&C, and target margins for all segments –
Slide 10: 2017 is Starting off Strong
CONCLUSION 2017 is Starting off Strong Solid financials, growing revenue with strategic wins Well positioned for growth in both Gov’t Services & Hydrocarbons sectors. Increasing project pursuit pipeline and consulting activity. More predictable earnings from high- level of secured backlog. No
Slide 11: Join Us For Investor Day
Join Us For Investor Day Friday, May 12 at the New York Stock Exchange www.kbr.com | We Deliver © Copyright KBR February 24, 2017
Slide 12: Appendix
APPENDIX
Slide 13: Consolidated EBITDA Reconciliation
NON-GAAP RECONCILIATION Consolidated EBITDA Reconciliation Quarter Ending ($ in millions) Mar 31, 2017 Mar 31, 2016 Net Income Attributable To KBR $ 37 $ 42 Add Back: Interest Expense (Income) $5 $1 Provision for Income Taxes $ 13 $ 15 Depreciation & Amortization $ 13 $9 Consolidated EBITDA $ 68 $ 6
Slide 14: Adjusted EPS Reconciliation
NON-GAAP RECONCILIATION Adjusted EPS Reconciliation Quarter Ending Mar 31, 2017 Mar 31, 2016 EPS (diluted) $ 0.26 $ 0.30 Add Back: Legacy Legal Fees $ 0.02 $ 0.04 Adjusted EPS $ 0.28 $ 0.34