Kbr, Inc. · NYSE:KBR
Kbr — Credit Suisse 2010 Engineering & Construction Conference
16 slides from Kbr's conference presentation, Jun 3, 2010
Slide 1: Credit Suisse 2010 Engineering & Construction Conference
Credit Suisse 2010 Engineering & Construction Conference Bill Utt – Chairman, President and CEO Sue Carter - Senior Vice President and CFO June 3, 2010
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: March 31, 2010 - $13.3 Billion (81% reimbursable / 19% fixed-price)* March 31, 2009 - $12.8 Billion (78% reimbursable / 22%
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 FEED progressing ¾ Inpex Ichthys FEED work continues ¾ Browse LNG Basis of Design award ¾Improving Gas Monetization margins ¾ Tangguh/Yemen LNG projects complete with expected change o
Slide 6: Oil & Gas
Oil & Gas ¾Capturing opportunities ¾ Expect to convert FEEDs to detailed engineering, design, and implementation during 2010 ¾ Iraq infrastructure opportunities ¾ Strong level of global offshore activity with several excellent opportunities in Caspian and West Africa over next 18 months ¾ Expand ser
Slide 7: Downstream
Downstream ¾Saudi Arabia projects progressing well ¾ FEED activities continue on Ras Tanura Integrated project ¾ Yanbu EPC packages currently being evaluated by customer ¾ Believe pull-out by Aramco partner may delay construction by only one month ¾African refinery projects moving forward ¾ Lobito p
Slide 8: North America Government & Defense
North America Government & Defense ¾ LogCAP Updates and Outlook ¾ CTP LogCAP IV Award and Basic Life Support services in Iraq to be continued under LogCAP III ¾ Bahrain LogCAP IV Award ¾ Received $60 million in prior period award fees ¾ Continue to expect 2010 revenue decline of approximately 50% fr
Slide 9: Infrastructure, Government, and Power
Infrastructure, Government, and Power ¾International Government & Defense ¾ Continued support for U.K. Ministry of Defence and NATO in Afghanistan ¾ Building on U.K. based logistics and life support and consultancy and training capabilities in Australia to expand services within the Asia-Pacific reg
Slide 10: Services
Services ¾U.S. construction markets ¾ Renewed activity for small to mid-size capital projects ¾ Not yet seeing a return of larger construction projects ¾Increased activity in Alberta oil sands region ¾Strong Building Group activity over past several quarters with sanctioned projects moving forward ¾
Slide 11: KBR Financials and Backlog
KBR Financials and Backlog
Slide 12: KBR’s Backlog
KBR’s Backlog ¾Creating a more profitable backlog portfolio ¾ Working off lower margin Escravos GTL, LogCAP, and Skikda LNG (reimbursable component) ¾ Adding higher value services to backlog ¾ Engineering and technical services ¾ Project and construction management ¾What grows backlog? ¾ Gorgon LNG,
Slide 13: Strong Balance Supports Functional Options
Strong Balance Supports Functional Options Capitalization @ March 31, 2010 ($ in millions) Cash and Cash Equivalents $ 908 Cash Associated with Joint Ventures 264 Discretionary Cash $ 644 Stable cash balance which will grow upon receipt of EPC 1 arbitration and LogCAP award fees. KBR intends to use
Slide 14: 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 15: 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 16: We Deliver
We Deliver
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