Mcdermott International Ltd · OTC:MCDIF
Mcdermott International — Lehman Brothers CEO Energy/Power Conference 2005
37 slides from Mcdermott International's conference presentation, Sep 6, 2005
Slide 1: McDermott International, Inc. Lehman Brothers CEO Energy/Power Conference
Exhibit 99.1 McDERMOTT Lehman Energy September / Brothers Power 6, 2005 INTERNATIONAL, Conference 2005 NewCEO York INC.
Slide 2: Cautionary Statements
Cautionary Statements settlement prospects statements. the its Lehman Form industry, Brothers 10-Q’s for of in Statements These and B&W’s growing this which such 2005 risks presentation Chapter other its are /CEO and Safe backlog, filed uncertainties factors Energy Harbor 11 which quarterly. proceed
Slide 3: McDermott Consolidated Operating Segments
McDermott Consolidated Government BWX Lifecycle Marine J. Providing Currently Babcock Power [1] Lehman Ray Major Technologies McDermott Generation generation Construction Brothers &management Not subsidiaries solutions Wilcox Operating Operations Operating Consolidated 2005 equipment (J. (B&W) for (
Slide 4: Three Investment Highlights
Investment Three Revised Experienced, Lehmanindustry-leading, settlement Brothers Highlights shareholder-focused 2005 provides CEO franchise-name for Energy retention management / Power businesses of B&W Conference team Economic Solid, September predictable benefit6, of backlog 2005 FAIR4and Act per
Slide 5: Financial and Common Stock Snapshot
Financial Common Stock [1] 535,700 Summary Revenues: billion [2] [3] Lehman As Income Seesymbol of Debt: appendix Brothers August Snapshot Share 1H05 $954 statement $264 (NYSE): Information Financial million 30, B2005 million for 2005 items reconciliation CEO MDR Op. Statistics Unrestricted are Inco
Slide 6: McDermott's Earnings Results
McDermott’s (note: Revenue $500 $0 BWXT Fully $1.05 1Q04 -$0.35 -$0.15 McDermott [1] [2] Lehman See Includes $400 diluted 2Q04 $0.85 excludes Appendix J.Brothers inRay $300 millions EPS 3Q04 $0.65 $50.4 GAAP Consolidated B&W) $200 A 2005 4Q04 $0.45 million for $600 Earnings $100 CEO items 1Q05 $0.25
Slide 7: BWX Technologies, Inc.
BWX BWXT and Powering McDERMOTT customer Technologies, is Transformation the premier confidence. INTERNATIONAL, Inc.SM manager of complex, INC. high-consequence nuclear and national security operations. We are disciplined operators and managers of nuclear production facilities, who deliver value
Slide 8: BWXT Manufactures, Manages and Operates
BWXT Manufactures, 2 Provide Manage 12 Lehman manufacturing sites Serves managed the and Brothers critical operate and Two divisions primarily 2005 is skills Key sites theCEO Roles premier and forbyEnergy Dept. resources LLCs supplier of/with Energy Power that of, JVproduce Conference nuclear partne
Slide 9: BWXT Primary Sites and Statistics
Primary INL Bettis Y-12 LANL SPR SRS Employees 2004 10,940 $555 DOE $1.1 Size More Lehman & of Billion Sites ORNL Revenues: Million Sites Site than Rocky AMW Pantex Nuclear Locations Brothers Budgets 12 NNSA (incl. Flats mmFacilities: site): 2005 Sites sq. Managed: Mound & Statistics ftCEO BWXT NTSE
Slide 10: BWXT Growth Drivers
BWXT Ship Funding Regulatory Lehman & submarine Growth Brothers of strategic and policy Drivers 2005 building & changes environmental CEOrates Energy Refuel / programs Power New Conference DOE M&O September opportunities 6, 2005 Space10reactor programs Down-blending services
Slide 11: BWXT Revenue and Segment Income
$444 $500 $300 $313 Former Revenue BWXT (millions) $100 $110 $60 $80 $52 2000 $0 $20 $40 Operating Equity [1] pension Lehman BWXT $60 $54 $200 2001 Income is Revenue Segment M&O expense. $44 Brothers Growing $400 $86 Income $100 2002 segment Contract 2003 $600 Income[1] See 2005 income Appendix 2004
Slide 12: BWXT Backlog Amortization
BWXT Manufacturing Beyond 2007 2006 Remainder [1] Lehman September Based 22% 31%Backlog 2007 Brothers on 6, 2005 6/30/05 2005 29% Backlog Amortization 18% 2005 12backlog CEO by Estimated Energy of [1]$1.6/ billion Revenue Power Conference Year
Slide 13: BWXT's Strategy
BWXT’sopportunities Maintain Explore Continue Lehman Brothers leadership Strategy strong operational 2005 position selectively CEOandMaintain Energy financial outside / Power customer the performance U.S. Conference confidence September Generate6,cost 2005reductions 13
Slide 14: McDermott International, Inc.
McDERMOTT INTERNATIONAL, INC.
Slide 15: J. Ray's Core Capabilities
J. Ray’s Hulls, Providing Engineering Jackets, Fabrication/Construction: Platforms, Installation: Subsea/Deepwater Lehman Core Brothers solutions Hulls, and Capabilities FPSOs, Procurement FPSOs, 2005 Technology for TLP’s CEO offshore TLP’s, Energy andfield Topsides Topsides /developments Power andC
Slide 16: J. Ray Snapshot
J. Rayof Long, Worldwide Location Asia Caspian Gulf Middle Mexico Engineering 9,100 Lehman September Pacific employees established McDermott East Mexico Ship (Baku) Brothers Facility 6, fabrication/installation (Batam) (Dubai) offices Repair 2005 (Morgan Fabrication Major 2005 track Snapshot 16 in 5
Slide 17: Spectrum of Deepwater Solutions
Spectrum FPSO Fixed Compliant Tieback Mini-TLP Conventional Semi-FPS Truss Classic Control Subsea J. (Graphics Lehman Ray’s Spar Platform (Floating Tieback Manifold Spar Buoy experience Flowline Brothers of compliments (Floating Tower Offshore Tension (CB) Production 2005 (CT) covers Production Infr
Slide 18: Offshore Field Development Lifecycle
Field Seismic Reservoir Well 1 Years Source: Lehman September – 2 Years Development infrastructure ofMorgan /Brothers development Drilling 6, 1 Year 2005 Stanley 2005 1Infrastructure 18 fabrication Lifecycle Year and CEO 1considerable – Energy 2 Years and Production installation /5Power –resources 2
Slide 19: J. Ray Backlog Characteristics
J. Ray Unit Fixed Combination Backlog Asia Caspian Americas [1] Lehman September Based Rate Pacific Price Backlog Middle Brothers by 3% on 4% 6,Type 34% Geographic 11% 6/30/05 62% 2005 Characteristics[1] East of 2005 19 Contract 53% backlog CEO Region 33%Energy of $0.9/ billion Power Conference
Slide 20: Industry Fundamentals Are Promising
Industry Commodity of Worldwide Under 500 C 0 [1] * Lehman September aspian* Strong Mexico Source: 450 construction 400 Brothers Fundamentals J.Latin SE 6, Ray Identified ODS prices 350 2005 Asia/Far Middle presence Petrodata 300 2005 at 20 Planning/design historic 250 Offshore Are East CEO Europe i
Slide 21: Solid, Improving J. Ray Segment Performance
Solid (dollars Improving $40 -$10 J. …and -$ 1Q04 Unrestricted [1] Lehman September Ray 100 See $30 Recent 2Q04 growing Segment Appendix in $20 Brothers millions) quarterly 6,3Q04 Cash $10 Performance 2005 J.Income $0 Ray A 2005 4Q04 Restricted 21 for results cash CEO items [1] 1Q05 bybalances Energ
Slide 22: Bidding Activity
Bidding Bids to Maintain Lehman winoutstanding our Activity Brothers financial share of leads exceeded 2005 discipline remaining to CEO 3rd $2Energy in Qtr. bids billion bids; Awards /manage inPower June Conference 2005 risk and Awarded reward September Saudi Selectively Aramco 6, 2005 pursue projec
Slide 23: J. Ray Well Positioned for Late-cycle Growth
J. Raypositioned Late-cycle Well Strong Lehman Summary franchise Brothers service toin2005 company capture strategic CEOindustry in geographical Energy offshore growth / Power field locations development Conference Management September team 6, leading 2005 23change in all areas $930 million backlog
Slide 24: McDermott International, Inc.
McDERMOTT INTERNATIONAL, INC.
Slide 25: The Babcock & Wilcox Company Snapshot
The Babcock Premier Acquired B&W Product/service Filed Approximately Lehmanfor Snapshot serves coal-fired Brothers Chapter by McDermott industry &6,500 offerings Wilcox 11 2005 boiler inemployees today 2000 CEO Company manufacturer in have 1978 through to Energy increased resolve was 6/ Power operat
Slide 26: B&W Operating Entities
B&W Service Babcock Diamond Vølund Lehman Operating ApS Brothers &Power Wilcox Babcock Company Int’l, Entities 2005 Fossil & Inc. CEO Wilcox Power Babcock Energy Canada Division &/ Power Wilcox Ltd. Construction ConferenceCo., September Inc. 6, 2005 26
Slide 27: Majority of B&W Business Is Service and Upgrades
Majority Plant OEM B&W $1.4 Lehman billion Enhancement PPO/Service 2004 Brothers of Business Revenues 2005 is CEO Services Energy & Upgrades / Power Conference A repeatable,September baseload business 6, 2005 27
Slide 28: B&W Distinguished History, Poised for Growth
B&W (dollars Backlog Revenues Non-GAAP $0 Cash 2000 Unrestricted [1] Note: Lehman Non-GAAP 2001 & pension - Distinguished Cash in Brothers $2,000 $2,000 millions) 2002 Operating cash Equivalents expense Operating $1,500 2003 $1,500 Cash 20052004 History, Income was in CEO $1,000 $1,000 lieu $400 inc
Slide 29: Key Points of Revised MDR Settlement
Revised Key MDR settlement, Consideration 11/30/06) B&W Lehmanpoints retains $352 Settlement Brothers Contingent not of million B&W revised of later settlement 2005 Agreement of –than payments with agreement cash CEO 2/22/06 or available $350 Energy without –dependent 8/29/05 million /on FAIR Power
Slide 30: Comparison of Settlement Consideration with Alternatives
Comparison Consideration with B&W Insurance Gross Net Initial Note Stock Estimated Future Expected [1] Lehman B&W present FAIR / issued amount business/stock cash, cash contingent B&W Brothers Date available rights gross Act payment value assets of /asbestos contingent of paid, of by Settlement tax
Slide 31: Key Dates/Timeline
Key Dates/Timeline 8/29/05 2/22/06 11/30/06 5/29/07 Lehman MDR Revised 180 Brothers Trigger days announces Settlement Date past 2005 ofTrigger on Revised CEO agreement contingent must Energy Date: Settlement be Contingent effective on consideration / Power termsConference of payment Revised determin
Slide 32: Remaining Key Issues and Events
Remaining Key Negotiate Install Achieve Lehman remaining exit Brothers effective and financing Issues sign issues 2005 date / acceptable Events and toby CEO reach book February forEnergy definitive Settlement effective reconsolidation 22, / Power 2006 date agreements Conference Obtain September nece
Slide 33: Key Areas of Focus
Key Areas Expedite Eliminate Successfully Build Maintain Succeed Continue Lehmanprofitable Brothers in B&W strong J.“asbestos delivering of bidding Ray execute Focus Chapter backlog performance on2005 for consistent cloud” value existing additional CEO 11 while for bankruptcy and Energy at backlog M
Slide 34: McDermott International, Inc. Contact
McDERMOTT (NYSE: For Jay Roueche moreMDR) information Director INTERNATIONAL, of contact: Investor Relations INC. 281-870-5462
Slide 35: Appendix: Items Included in Operating Income
Appendix (Unaudited, 12/31/04 1. Contract Pension Miscellaneous Gain Qualified Depreciation Marine Government Corporate TOTAL 2. Estimated Tax Net Lehman ITEMS OTHER After Impact onConstruction $62.4 $15.0 $(33.1) $40.3 funding sale U.K. Brothers cost 12/31/03 Tax pension A & Change INCLUDED ITEMS O
Slide 36: Appendix: Non-GAAP Reconciliation
Appendix McDERMOTT Three 2005 (In (Unaudited) Net Valuation Adjustments: Deferred Pre-tax Tax Weighted NON-GAAP [1] operations considered operational to absent Lehman provide thousands, Presented Income on2004 Months income B&W B&W Brothers tax Average allowance Bthis for 2005 superior performance $
Slide 37: Appendix: B&W Operating Income Reconciliation
Appendix (dollars 2000 GAAP Add Income Asbestos C11 Non-GAAP Presented Operating B&W substitute this considered Lehman supplemental Expenses back: 2001 forin Brothers & the for, above C ($3.2) millions) 2002 by 17.9 $14.7 –periods the management B&W 2003 is 32.6 $41.6 comparable 2005 non-GAAP $74.2
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