Kbr, Inc. · NYSE:KBR
Kbr — Barclays Capital Industrial Select Conference 2011
19 slides from Kbr's conference presentation, Feb 9, 2011
Slide 1: Barclays Capital Industrial Select Conference
Barclays Capital Industrial Select Conference Bill Utt – Chairman, President and CEO Sue Carter - Executive Vice President and CFO February 9, 2011 Page 1 of 18
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include statements about the benefits of the split-off, the discussions of K
Slide 3: KBR – A Leading Global E&C Provider
KBR – A Leading Global E&C Provider » Revenue: Full Year 2009 - $12.1 Billion; 2009 Fortune 500 Company #193 Full Year 2008 - $11.6 Billion; Fortune 500 Company #234 » Backlog: September 30, 2010 - $12.3 Billion (79% reimbursable / 21% fixed-price)* September 30, 2009 - $13.5 Billion (82% reimbursab
Slide 4: KBR Operates in 45 Countries
KBR Operates in 45 Countries Gothenburg Edmonton Greenford Moscow Leatherhead Calgary Wilmington Atyrau Arlington Baku Raleigh / Charlotte Algiers Baghdad Houston Atlanta Cairo Kuwait City China Birmingham Monterrey Dhahran Dubai New Delhi MMM Abu Dhabi Lagos Singapore Jakarta Angola Brisbane Johann
Slide 5: KBR's Recent Acquisitions
KBR’s Recent Acquisitions Roberts & Schaefer Company ¾Roberts & Schaefer’s capabilities essentially focus on three distinct markets: mining, conveyance and handling, and power ¾Expands KBR’s existing EPCm capabilities in the minerals market to new geographies and customers, which were largely in the
Slide 6: Roberts & Schaefer Principal Locations
Roberts & Schaefer Principal Locations ¾ Roberts & Schaefer is headquartered in Chicago ¾ Two principal domestic engineering offices, Chicago, IL for its Power division and Salt Lake City, UT for Mining ¾ Red boxes designate major R&S project locations Page 6 of 18
Slide 7: KBR's Recent Acquisitions
KBR’s Recent Acquisitions M.W. Kellogg Limited (MWKL) ¾MWKL becomes a wholly-owned subsidiary of KBR ¾The acquisition allows KBR to build on the unique capabilities of MWKL along with our existing Leatherhead operations creating one of the largest engineering and construction offices in the U.K. ¾Cr
Slide 8: Hydrocarbons
Hydrocarbons ¾LNG remains robust ¾ Skikda LNG progressing well ¾ Gorgon LNG execution is strong ¾ Pluto 2 and 3 FID expected 2nd half of 2011 ¾ Inpex Ichthys FID expected 2nd half of 2011 ¾ Browse LNG Basis of Design completed ¾Improving Gas Monetization margins ¾ Tangguh/Yemen LNG projects complete
Slide 9: Hydrocarbons
Hydrocarbons ¾Oil & Gas ¾ FEEDs being converted to detailed engineering, design, and implementation ¾ Strong level of global offshore activity with several excellent opportunities in Caspian and West Africa over next 18 months ¾ Opened new offices in Kazakhstan and Angola ¾ Expand service offerings
Slide 10: Downstream
Downstream ¾Saudi Arabia projects progressing well ¾ FEED activities continue on Ras Tanura Integrated project ¾ Yanbu Export Refinery project ramping up ¾ Competition in the Middle East on EPC projects remains fierce ¾ KBR staffing EPC project offices in support of Aramco GES Plus initiative ¾Afric
Slide 11: North America Government & Defense
North America Government & Defense ¾ LogCAP Updates and Outlook ¾ Expect 2011 revenue between $1.6 to $1.8 billion ¾ Assuming current 50,000 troop levels until the back half of 2011, with substantial ramp down by end of 2011 ¾ Received $94 million in award fees during 2010 ¾ Positive progression on
Slide 12: Infrastructure, Government, and Power
Infrastructure, Government, and Power ¾ International Government & Defense ¾ Continued support for U.K. Ministry of Defence and NATO in Afghanistan; newly acquired NATO contract ramped up ¾ Building on U.K. based logistics and life support and consultancy and training capabilities in Australia to ex
Slide 13: Services
Services ¾U.S. construction markets ¾ Continued moderate activity for small to mid- size capital projects ¾ Only now seeing the beginnings of a return of larger construction projects ¾Increasing activity in Alberta oil sands region ¾Strong Building Group activity in 2010 with sanctioned projects mov
Slide 14: KBR Financials and Backlog
KBR Financials and Backlog Page 14 of 18
Slide 15: 2011 Earnings Guidance Summary
2011 Earnings Guidance Summary ¾Expected FY2011 earnings per diluted share is $2.05 to $2.30 ¾Includes expected $0.17 contribution for R&S acquisition and MWKL acquisitions ¾FY2011 LogCAP revenue between $1.6 - $1.8 billion ¾Operating effective tax rate approximately 32 percent ¾Diluted shares outst
Slide 16: Effective Cash Deployment
Effective Cash Deployment December 31, 2009 ($ millions) Full Year 2010 Estimates ¾ Operating Requirements Cash and Cash Equivalents $941 Joint Venture Cash $236 ¾ Dividends $32 M Operating / Discretionary Cash $705 ¾ Capex with ERP $70 - $80 M ¾ Share Repurchase $229 M First Nine Months of 2010 ($
Slide 17: Working Capital Management
Working Capital Management ¾Focused on reducing general business accounts receivable ¾Managing accounts payable ¾Resolution of unbilled receivables on uncompleted contracts ¾Collecting on past disputes (EPC 1) ¾Government Business ¾ As LogCAP work declines, less working capital requirements ¾ Dilige
Slide 18: KBR Investment Thesis
KBR Investment Thesis • KBR is a growth company across a broad based and diverse series of businesses • Optimism for acceleration in new orders around growth opportunities across markets • Ample opportunities to replace declining LogCAP work • Strong balance sheet with emphasis on cash management •
Slide 19: We Deliver
We Deliver
KBR — Barclays Capital Industrial Select Conference 2011 on 6ix