Slide 1: 1st Quarter 2019 Financial Results
1st Quarter 2019 Financial Results May 1, 2019 Stuart Bradie – President and Chief Executive Officer Mark Sopp – Executive Vice President and Chief Financial Officer Alison Vasquez – 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: Stuart Bradie, Chief Executive Officer
Stuart Bradie Chief Executive Officer
Slide 4: Leading Health, Safety, Security & Environmental Excellence
Leading Health, Safety, Security & Environmental Excellence Total Recordable Incident Rate (TRIR) Performance: 2012 – 1Q191 100% 0.50 80% 76% 0.42 0.40 Improvement in incident 79% rates since launch of Zero 60% 70% 72% 0.30 0.28 62% Harm in 2014 0.24 0.22 52% 0.19 40% 0.20 20% 2 0.10 0.10 Zero Harm
Slide 5: Highlights | 1st Quarter 2019
Highlights | 1st Quarter 2019 $ in millions, except EPS Revenues Adjusted EBITDA1 Adjusted EBITDA1 Revenue, Adjusted EBITDA and Adjusted Margin EPS growth fueled by industry leading organic growth and acquisitions $1,340 $97 $84 $1,038 8.1% 7.2% 29% top-line Revenue growth ‐ 44% growth in Govern
Slide 6: Market Outlook
Market Outlook Healthy government spending budgets, both domestic and international Government Full life-cycle capabilities aligned with defense strategy objectives Solutions (GS) Excellent execution, contract performance and client relationships Continued strong demand for petrochemical, re
Slide 7: LOGCAP V
LOGCAP V • Won three of seven major contracts • Afghanistan • European command (EUCOM) • Northern command (NORTHCOM) • LOGCAP IV work will continue through 2019 • No change to 2019 guidance • LOGCAP V is a strategic expansion towards increased sustainment, training and long- term programs • Expands
Slide 8: Mark Sopp, Chief Financial Officer
Mark Sopp Chief Financial Officer
Slide 9: Consolidated Results
Consolidated Results Quarter Ending ($ in millions, except EPS) Mar 31, 2018 Mar 31, 2019 Strong growth in Revenues and Adjusted EBITDA Revenues $ 1,038 $ 1,340 All segments met/exceeded Adjusted EBITDA targets Gross Profit $ 115 $ 153 Equity in Earnings $ 23 $0 EBITDA up 15% over 1Q18 on high
Slide 10: KBR Segment Results | GS, TS and ES
KBR Segment Results | GS, TS and ES $150 $1,000 $75 $500 Revenues of $975 million, up $298 million or 44% from Q12018 Fifth straight quarter of double-digit organic growth; 13% excluding Tyndall GS $0 $0 Continued focus on cash collections and DSO 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 $
Slide 11: Capital Allocation and Liquidity
Capital Allocation and Liquidity Quarter Ending Dec 31, 2018 Mar 31, 2019 Ending Cash Balance $ 739 $ 708 Gross Debt $ 1,336 $ 1,334 TTM Adjusted EBITDA1 $ 414 $ 427 Gross Debt/Adjusted EBITDA1 3.2 3.1 Payments of Dividends to Shareholders $ 11 $ 11 De-leveraging aligned with growing Adjusted EBITDA
Slide 12: Reaffirming 2019 Full-Year Guidance
Reaffirming 2019 Full-Year Guidance Reaffirming 2019 Guidance GAAP EPS $1.29 - $1.44 Adjusted EPS1 $1.58 - $1.73 Effective Tax Rate 23% - 25% Operating Cash Flow $175M - $205M 12 Adjusted EPS reconciliation provided in the Appendix 1
Slide 13: Final Thoughts
Final Thoughts Excellent start to 2019 – strong growth, execution, cash collection and bookings Quality cash conversion Healthy Energy Solutions BTB and key wins in Q2 supporting our growth outlook and 2019 guidance LOGCAP V win removes uncertainty and provides growth opportunities for many
Slide 14: 2019 KBR Investor Conference
2019 KBR Investor Conference Friday, May 3 New York Stock Exchange 14
Slide 15: Appendices
APPENDICES 15 Investor Presentation | KBR
Slide 16: Appendix: Ichthys LNG Project Status
Appendix: Ichthys LNG Project Status Operations Temporary Complex Power Plant All of the components of the LNG facility, except for CCPP, are complete and turned over to the client Combined Cycle Power Plant Butane GTG GTG GTG GTG GTG Tank CCPP is on track to export combined cycle power in 1 2 3
Slide 17: Financial Snapshot | Nine Quarters of Consistent Results
Financial Snapshot | Nine Quarters of Consistent Results Adjusted Earnings Per Share Guidance and Results Annual Guidance Achieved Annual AEPS $1.58 to $1.73 Results $1.53 Raised Guidance 1Q ’19 $1.45 to $1.55 4Q ‘18 AEPS $0.36 Raised Guidance $1.40 to $1.50 AEPS $0.39 Annual Guidance 3Q ‘18 $1.35 t
Slide 18: Appendix: Backlog Trend
Appendix: Backlog Trend $ in millions $13,495 $13,481 $13,497 $13,602 $13,157 Majority of KBR backlog is currently $1,601 $2,144 $1,898 $1,898 $2,280 Energy Solutions associated with long-term, reimbursable, PFI and/or service contracts with a lower risk $547 Technology Solutions $10,595 $423 $544
Slide 19: Non-GAAP Reconciliation: Adjusted EPS, Adjusted EPS Guidance
Non-GAAP Reconciliation: Adjusted EPS, Adjusted EPS Guidance Quarter Quarter Ending Quarter Ending Ending Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 FY17 Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 FY18 Mar 31, 2019 EPS (Diluted) $0.26 $0.54 $0.32 $1.94 $3.06 $0.97 $0.30 $0.41 $0.31
Slide 20: Non-GAAP Reconciliation: Consolidated, Adjusted and TTM Adjusted EBITDA
Non-GAAP Reconciliation: Consolidated, Adjusted and TTM Adjusted EBITDA EBITDA is defined as earnings before interest income / expense, income taxes, other non- operating income / expense (including FX), depreciation and amortization Quarter Ending ($ in millions) Mar 31, 2018 Mar 31, 2019 Sep 30, 2