Kbr, Inc. · NYSE:KBR
Kbr — D.A. Davidson Ninth Annual Engineering & Construction Conference (September 2010)
17 slides from Kbr's conference presentation, Sep 28, 2010
Slide 1: D.A. Davidson Ninth Annual Engineering & Construction Conference
D.A. Davidson Ninth Annual Engineering & Construction Conference Bill Utt – Chairman, President and CEO Sue Carter - Senior Vice President and CFO September 28, 2010 Page 1 of 16
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: June 30, 2010 - $12.4 Billion (79% reimbursable / 21% fixed-price)* June 30, 2009 - $12.3 Billion (79% reimbursable / 21% f
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: Gas Monetization
Gas Monetization ¾LNG remains robust ¾ Skikda LNG progressing well ¾ Gorgon LNG execution is strong ¾ Pluto 2 and 3 FID expected mid-2011 ¾ Inpex Ichthys FID expected 2nd half of 2011 ¾ Browse LNG Basis of Design ¾Improving Gas Monetization margins ¾ Tangguh/Yemen LNG projects complete; negotiating
Slide 6: Oil & Gas
Oil & Gas ¾Capturing opportunities 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 Expand service offerings from engineering to project executi
Slide 7: Downstream
Downstream ¾Saudi Arabia projects progressing well ¾ FEED activities continue on Ras Tanura Integrated project ¾ Yanbu EPC packages awarded ¾ KBR staffing up EPC project offices in support of Aramco GES Plus initiative ¾African refinery projects moving forward ¾ Lobito project negotiations for first
Slide 8: North America Government & Defense
North America Government & Defense ¾ LogCAP Updates and Outlook ¾ Expect 2011 revenue at approximately second half of 2010 levels ¾ Once troop level at 50,000 levels, expect our staffing to remain reasonable consistent through end of 2011 ¾ Received $60 million in prior period award fees during seco
Slide 9: Infrastructure, Government, and Power
Infrastructure, Government, and Power ¾International Government & Defense ¾ Continued support for U.K. Ministry of Defence and NATO in Afghanistan; newly acquired NATO contract ramped up ¾ Building on U.K. based logistics and life support and consultancy and training capabilities in Australia to exp
Slide 10: Services
Services ¾U.S. construction markets ¾ Continued moderate activity for small to mid- size capital projects ¾ Only now seeing the beginnings of a return of larger construction projects ¾Increasing activity in Alberta oil sands region ¾Strong Building Group activity this year with sanctioned projects m
Slide 11: KBR Financials and Backlog
KBR Financials and Backlog Page 11 of 16
Slide 12: Creating a More Profitable Backlog
Creating a More Profitable Backlog 155 150 ¾Less impact from legacy projects Job Income Backlog 145 ¾Less impact from LogCAP project 140 ¾Success from risk focus on new Performance Index projects 135 ¾Pursuit of selective projects 130 125 120 115 Revenue Backlog 110 105 100 2006 2007 2008 2009 Page
Slide 13: Risk Profile of Backlog
Risk Profile of Backlog 80% 82% 79% 72% 43% 12/31/06 12/31/07 12/31/08 12/31/09 6/30/10 Future Backlog as of Date Reported Reimbursable Backlog Fixed-price Backlog Improved Risk Profile Over Time Page 13 of 16
Slide 14: Effective Cash Deployment
Effective Cash Deployment Full Year 2010 Outlook ¾ Operating Requirements June 30, 2010 ($ millions) ¾ Dividends $32 M Cash and Cash Equivalents $1,235 ¾ Capex with ERP $70 - $80 M Joint Venture Cash $267 ¾ Share Repurchase* Up to $220 M Operating / Discretionary Cash $968 ¾ Pension Contribution $30
Slide 15: 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 16: 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 17: We Deliver
We Deliver
KBR — D.A. Davidson Ninth Annual Engineering & Construction Conference (September 2010) on 6ix