Kbr, Inc. · NYSE:KBR
Kbr — Capital One 6th Annual Energy Conference (December 2011)
21 slides from Kbr's conference presentation, Dec 6, 2011
Slide 1: Capital One 6th Annual Energy Conference
Capital One 6th Annual Energy Conference Sue Carter - Executive Vice President and CFO December 6, 2011 Page 1 of 20
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 ¾ Revenue: Full Year 2010 - $10.1 Billion; Fortune 500 Company #242 ¾ Backlog: September 30, 2011 - $11.7 Billion (77% reimbursable / 23% fixed-price)* ¾ Current 2011 Earnings Guidance - $3.15 to $3.30 per diluted share ¾ Headquarters in Houston, Texas ¾ ~35,000 e
Slide 4: KBR's Global Footprint
KBR’s Global Footprint Gothenburg Edmonton Greenford Moscow Leatherhead Calgary Frankfurt Wilmington Atyrau Arlington Baku Raleigh / Charlotte Algiers Baghdad Houston Atlanta Beijing Kuwait City Birmingham Monterrey Dhahran Dubai New Delhi MMM Abu Dhabi Lagos Singapore Jakarta Angola Rio De Janeiro
Slide 5: KBR 2012 Objectives
KBR 2012 Objectives In 2012, KBR Plans to: ¾ Sign up our “Big Elephants” – Inpex LNG, Kitimat LNG, Browse LNG, Pluto LNG and the Angola Refinery projects ¾ Continue to grow KBR’s Power, Mineral, Infrastructure, Services and Other Hydrocarbons Businesses ¾ Successfully manage the transition of our mi
Slide 6: Hydrocarbons
Hydrocarbons ¾Market-leading position on 6 major LNG projects ¾ Ichthys FID expected fourth quarter of 2011 ¾ Kitimat FEED expected completion end of 2011 with FID in first half 2012 ¾ Pluto Expansion pre-FID services continuing ¾ Browse expected FEED completion for mid- 2012 FID ¾ Gorgon 4 pre-FEED
Slide 7: Hydrocarbons
Hydrocarbons ¾Oil & Gas ¾ FEEDs being converted to detailed engineering, design, and implementation ¾ GOM: Big Foot; Jack & St. Malo ¾ North Sea: Quad 204 - West of Shetlands; South Arne ¾ West Africa: CLOV; ¾ Caspian: Chirag; Shah Deniz 2; Kashagan ¾ Western Australia: GDF SUEZ Bonaparte; ¾ Brazil:
Slide 8: Downstream
Downstream ¾Lobito 200,000 barrels-per-day refinery project ¾ FEED complete; working under EPCm bridging agreement ¾Saudi Arabia projects progressing well ¾ Yanbu Export Refinery project - KBR’s PMC team moving to site ¾ Ras Tanura Integrated project – FEED completion and FID expected later this yea
Slide 9: Technology
Technology KBR develops new technologies that reduce cost while improving efficiency and safety. This allows KBR to offer customers unsurpassed value through a suite of technologies, including: ¾ Ammonia: Purifier™; Purifierplus™; KAAP™; KAAPplus™ ¾ Refining: Veba Combi-Cracking (VCC); ROSE©; FCC ¾
Slide 10: North America Government & Logistics
North America Government & Logistics ¾ LogCAP Updates and Outlook ¾ Expected 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 Awarded LogCAP IV contract for base life-support activities in Iraq f
Slide 11: Infrastructure, Government, and Power
Infrastructure, Government, and Power ¾ Power & Industrial ¾ $450 million KBR award for Palm Beach Solid Waste Authority new state- of-the-art waste to energy facility ¾ Infrastructure & Minerals ¾ Minerals markets strengthening; Hope Downs 4 EPCm award and Roberts & Schaefer opportunities ¾ Interna
Slide 12: Services
Services ¾U.S. construction markets ¾ Now seeing the beginnings of a return of larger construction projects ¾ Chevron’s Base Oil expansion project award ¾ Southern Company’s Plant Scherer project award ¾Increasing activity in Alberta oil sands region ¾Building Group benefitting from strong sales act
Slide 13: KBR Financials and Backlog
KBR Financials and Backlog Page 13 of 20
Slide 14: 2011 Earnings Guidance
2011 Earnings Guidance Third Quarter 2011 Guidance $3.15 to $3.30 $0.45 for Barracuda/Caratinga arbitration $0.10 to lower end of range for stronger operating performance and G&A expense control Second Quarter 2011 Guidance $2.60 to $2.85 $0.37 for discrete tax items & lower ETR $0.09 for stronger o
Slide 15: Strengthening Backlog Contributing to Margins
Strengthening Backlog Contributing to Margins 13.0% 2011* 12.0% 2010 11.0% Job Income Margin 10.0% 2009 9.0% 2007 2008 8.0% 2006 7.0% 6.0% $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 Revenue (in millions) *Note: Annualized based on First Nine Months of 2011 Actual Reported financials from Form 10-
Slide 16: Backlog Growth Expected
Backlog Growth Expected Prospect List Indicates Backlog Growth for KBR’s 3-Year Planning Horizon 9/30/2011 2012E 2013E 2014E Page 16 of 20
Slide 17: Cash Generation & Cash Deployment
Cash Generation & Cash Deployment $549M $319M 2010 Business Cash $312M $164M Acquisitions $265M Generation & Licensing Arrangements 9 Months 2011 MWKL $119M Business $941M Acquisition Share Cash $120M Generation Repurchases & Dividends Share Repurchases $125M CAPEX; $786M & Dividends Other Investing
Slide 18: Financial Focus Areas
Financial Focus Areas ¾Backlog continues to strengthen to enhance margin improvement ¾Backlog growth expected through strong prospect list ¾Strong cash generation ¾Corporate G&A control ¾Continued thoughtful and strategic deployment of cash ¾KBR has strong financials to support growth Page 18 of 20
Slide 19: KBR's 2012 Preliminary Guidance Items
KBR’s 2012 Preliminary Guidance Items Preliminary 2012 Guidance Items ¾ Anticipated LogCAP revenue between $300 - $500 million ¾ Effective Tax Rate expected to be approximately 28% Page 19 of 20
Slide 20: KBR Investment Thesis
KBR Investment Thesis ¾ KBR is a catalyst driven growth company across a broad based and diverse series of businesses ¾ Optimism for acceleration in new orders around growth opportunities across markets ¾ Strong balance sheet with emphasis on cash management ¾ Patience, prudence, and thoughtfulness
Slide 21: Proud History
Proud History
KBR — Capital One 6th Annual Energy Conference (December 2011) on 6ix