Kbr, Inc. · NYSE:KBR
Kbr — Investor Presentation (June 2015)
20 slides from Kbr's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
Investor Presentation June 2015 Stuart Bradie – President and Chief Executive Officer Brian Ferraioli – EVP and Chief Financial Officer Zachary Nagle – VP, Investor Relations
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
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 12-Month Rolling TRIR 300 0.50 234 250 0.40 0.41 200 0.30 0.37 0.32 150 0.20 0.24 1
Slide 4: KBR Overview
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 employees in more than 45 countries. • Customers in more than 7
Slide 5: KBR Overview
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 government services. • We have begun to streamline operations and signifi
Slide 6: Structure – Streamlined / Focused
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 business units) KBR Technology & Engineering & Government Consulting Const
Slide 7: KBR’s Business Groups
KBR’s Business Groups Technology & Consulting Engineering & Construction Government Services Proprietary Technologies Offshore EMEA Upstream Fixed Platforms Home Base Operational • Semi-submersible hull Floating Facilities Support design Hulls, Moorings & Risers Overseas Operational Supp
Slide 8: Strategic Priorities
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 Pursue Fixed Price EPC when differentiated by: Global project delivery - KBR Techn
Slide 9: Framework to Support Core Focus
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 tools & procedures to deliver - Building Group consistency and efficien
Slide 10: 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 $100M savings identified and actioned to-date; will be realized throughout 2015. Two mega LNG projects continue to perform well and are expected to re
Slide 11: Consolidated Results: Q1 2015 vs Q1 2014
Consolidated Results: Q1 2015 vs Q1 2014 Quarter Ending Commentary ($ 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
Slide 12: 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
Slide 13: 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
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: 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
Slide 18: Summary
Summary Significantly improved earnings vs 2014. KBR’s restructuring remains on track to deliver $200 million in annual cost savings by 2016 and gross profit and equity in earnings margin percentages: T&C – low 20s. E&C – upper single digits. GS – low teens range (excluding legacy U.S. Gov
Slide 19: Appendix
Technology & Consulting Engineering & Construction Government Services
Slide 20: Consolidated EBITDA Reconciliation 1Q 2015
Consolidated EBITDA Reconciliation 1Q 2015 Quarter Ending ($ 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: