Slide 1: Q4 2014 Financial Results
Q4 2014 FINANCIAL RESULTS February 27, 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 Safety
KBR Safety 2014 – KBR TRIR* Driving to Zero Harm 0.40 Clear and consistent Health, Safety, Security 0.38 and Environment (HSSE) messaging from 0.35 Senior Management in town halls, videos 0.35 Structured HSSE Campaign Strategy 0.30 0.28 launched 0.25 0.25 0.20 HSSE Global Branding Strategy dev
Slide 4: Summary
Summary KBR’s restructuring has begun and is on track to deliver segment margin percentage targets and $200M annualized savings T&C gross profit and equity in earnings margin – low 20 range E&C gross profit and equity in earnings margin – upper single digits range GS gross profit and equity
Slide 5: Restructuring Charge Reconciliation to Reported P&L
Restructuring Charge Reconciliation to Reported P&L Impacts from Restructuring (Estimates vs Actual) in USD millions High End Mapping to 10-K Analyst Day Consolidated Statement of Item Range 4Q14 Actual Cash Future Cash Non-cash Operations Goodwill Impairment $ 325 $ 446 $ - $ - $ 446 Impairment of
Slide 6: Consolidated Results: Q4 2014 vs Q4 2013
Consolidated Results: Q4 2014 vs Q4 2013 Quarter Ending Commentary ($ in millions, except EPS) Dec 31, 2014 Dec 31, 2013 Bookings (New Awards) $ 380 $ 1,116 Gross Profit includes $130M previously Backlog of Unfilled Orders $ 10,859 $ 14,118 announced charge on U.S. Power projects Revenue $ 1,417 $
Slide 7: Segment Reporting: Q4 2014 vs Q4 2013
Segment Reporting: Q4 2014 vs Q4 2013 Revenue Quarter Ending T&C primarily impacted by completion of Basic Engineering and Design (BED) activities in 2014 ($ in millions) Dec 31, 2014 Dec 31, 2013 Reflects higher revenue from ammonia and oil & gas projects, Revenue offset by lower volume on larg
Slide 8: Cash / Capital Allocation
Cash / Capital Allocation KBR Cash Balance Return of Cash to Shareholders ($ in millions) Q4 2014 Q4 2013 ($ in millions) Q4 2014 YTD Dec-14 Since Jan-07 Domestic $200 $355 Share Repurchases $4 $106 $731 International $690 $675 Dividends $12 $47 $239 JV $80 $76 Total $970 $1,106 Total Returned to SH
Slide 9: Market Outlook: Technology & Consulting
Market Outlook: Technology & Consulting Technology market opportunities strong, led by ammonia, refining, olefins & other chemicals Prospects include a solid balance of new facilities and rebuilds Opportunities in China and elsewhere for VCC (Veba Combi-Cracker) technology and converting heavy
Slide 10: Market Outlook: E&C
Market Outlook: E&C Recent awards supporting strategic focus areas Yara / BASF Grassroots Ammonia Complex, EPC award (1Q15) BG Alliance Partnership Award for front end project development Saudi Aramco - Long Term Maintenance Agreement for Offshore Oil & Gas Projects Magnolia LNG technical se
Slide 11: Market Outlook: E&C (Continued)
Market Outlook: E&C (Continued) Good pipeline of near- and long-term prospects Continue to work on Shell Global LNG Agreement, with several assignments underway Downstream opportunities (refining and petrochemicals) in the Middle East remain strong Continued work on several North America downs
Slide 12: Market Outlook: Government Services
Market Outlook: Government Services U.K. Army Re-Basing – Client has confirmed intention to contract with existing KBR JV for facilities construction, subject to satisfactory negotiation. Award expected in 2015 Strong operational performance continues for U.K. MoD Work – long-term facilities mai
Slide 13: Summary
Summary Restructuring has begun and is on track to achieve margins and cost savings targets 4Q14 results include significant restructuring and tax valuation related charges 4Q14 segment operating results reflect some discrete items not expected to reoccur Market somewhat challenged but encou
Slide 14: Appendix
Technology & Consulting Engineering & Construction Government Services
Slide 15: Consolidated EBITDA Reconciliation 4Q 2014
Consolidated EBITDA Reconciliation 4Q 2014 Quarter Ending ($ in millions) Dec 31, 2014 Dec 31, 2013 Net Income Attributable to KBR ($1,241) ($56) Add Back: Interest Income (Expense) ($5) ($2) Provision for Tax ($391) ($24) Depreciation & Amortization ($17) ($19) Consolidated EBITDA ($828) ($11) Note
Slide 16: 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