Kbr, Inc. · NYSE:KBR
Kbr — 2012 Goldman Sachs Global Industrials Conference
23 slides from Kbr's conference presentation, Nov 13, 2012
Slide 1: 2012 Goldman Sachs Global Industrials Conference
2012 Goldman Sachs Global Industrials Conference Sue Carter – Executive Vice President and CFO Roy Oelking – Group President, Hydrocarbons November 13, 2012 Zac Nagle – Vice President, Investor Relations & Communications
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 2011 - $9.3 Billion Backlog: September 30, 2012 - $14.8 Billion Headquarters in Houston, Texas ~27,000 employees; 70+ countries KBR is a global engineering, construction, and services company supporting the energy, hydrocarbons, govern
Slide 4: KBR’s Global Footprint
KBR’s Global Footprint Gothenburg Moscow Edmonton Greenford Ontario Leatherhead Atyrau Frankfurt Calgary Chicago Baku Salt Lake City Charlotte Raleigh Birmingham Wilmington Algiers Baghdad Arlington Atlanta Kuwait City Houston Mobile Dammam Beijing Monterrey Doha Dhahran Dubai MMM Abu Dhabi New Delh
Slide 5: KBR’s Three Business Groups
KBR’s Three Business Groups Infrastructure, Hydrocarbons Services Government & Power Gas Monetization N.A. Government & Logistics (NAGL) Construction LNG U.S. Federal Government Refining FLNG Department of Defense Chemicals GTL International Government, Defence Oil & Gas Oil & Gas &
Slide 6: 3Q12 Review - KBR
3Q12 Review - KBR Revenue, excluding LogCAP, up 2% year-over-year Job income margins of 15.6% compared to 11.6% year-over-year On an adjusted Non-GAAP basis*, earnings per diluted share of $0.65 compared to $0.62 year-over-year Backlog of $14.8 billion compared to $11.7 billion year-over-yea
Slide 7: Operating Highlights
Operating Highlights Continued strength in operating performance Strong project execution Robust pipeline of project opportunities – currently involved in 19 Hydrocarbon studies, pre-FEEDs and FEEDs, each with significant contract dollar potential for KBR Maintaining focus on corporate cost
Slide 8: Hydrocarbons – Gas Monetization and Oil & Gas
Hydrocarbons – Gas Monetization and Oil & Gas Current Gas Mon Projects Progressing Expanding Share of Wallet for Oil & Gas Gorgon LNG Trains 1-3 Pursuing EPC projects Skikda LNG SARB project Escravos GTL ZADCO project Ichthys LNG EPC Shah Deniz project Good Investment of LNG pre-FEED
Slide 9: Hydrocarbons – Downstream and Technology
Hydrocarbons – Downstream and Technology U.S. Shale Gas Opportunities Ethylene Project in Uzbekistan Awarded design, construction and technology for Recently awarded ~ $120 million technology and ethylene furnace for INEOS EPC support contract Awarded FEED for fertilizer complex for Ohio Valle
Slide 10: Services
Services Canada Operations Building Group Strong across variety of markets: Strong multi-family residential and manufacturing Turnarounds / maintenance construction Module fabrication $301 million booked into backlog last two quarters Construction projects in Alberta Oil Sands Healthca
Slide 11: Infrastructure, Government & Power
Infrastructure, Government & Power North American Government & Infrastructure Logistics Stable, strong market in Australia Strong bids outstanding with diverse base Expanded opportunities in Middle East market U.S. Army, Navy, and Air Force (Qatar & Saudi Arabia) Army Corps of Engineers
Slide 12: KBR Financials and Backlog
KBR Financials and Backlog 12
Slide 13: 3Q12 Review - KBR
3Q12 Review - KBR Revenue, excluding LogCAP, up 2% year-over-year Job income margins of 15.6% compared to 11.6% year-over-year On an adjusted Non-GAAP basis*, earnings per diluted share of $0.65 compared to $0.62 year-over-year Backlog of $14.8 billion compared to $11.7 billion year-over-yea
Slide 14: Performance Index
Backlog 220 210 200 190 Performance Index 180 170 160 150 140 130 120 110 100 90 80 2006 2007 2008 2009 2010 2011 9/30/2012 Revenue Backlog Job Income Backlog Continued focus on job income backlog: Up 34% from December 31, 2011 Up 104% since December 31, 2006 14
Slide 15: Job Income Margins Improving
Job Income Margins Improving 13.8% 12.0% 11.2% First Nine Months 2010 First Nine Months 2011 First Nine Months 2012 15
Slide 16: Tax Rate Improvement Over Time
Tax Rate Improvement Over Time 80% 70% 60% Tax Percentage 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 Nine Months 2012 Effective Tax Rate Effective Tax Rate Excluding Discrete Items Note: Nine Months 2012 ETR includes the 3Q12 $178 million goodwill impairment 16
Slide 17: Strong Corporate G&A Cost Control
Strong Corporate G&A Cost Control $240 $230 $220 Corporate G&A $ in Millions $210 $200 $190 $180 $170 $160 $150 2007 2008 2009 2010 2011 2012 Guidance* *Note: ERP spending guidance reflective of $20-$25 million as provided in April 2012 ERP Spend 17
Slide 18: Investment Thesis
Investment Thesis Fundamentally strong, global growth company with diverse portfolio of businesses Multiple platforms for acceleration of new orders across global end markets; strategically placing bets on a number of large opportunities through pre-FEEDs and FEEDs Driving higher job income an
Slide 19: GAAP to Non-GAAP Reconciliation Tables
GAAP to Non-GAAP Reconciliation Tables The presentation of non-GAAP measures is intended to enhance the usefulness of financial information by providing measures which KBR management uses internally to evaluate our performance on a comparable basis. Presented below are reconciliations of the reporte
Slide 20: Reconciliation Tables
Reconciliation Tables Reconciliation of EPS Adjusted for Non-cash Goodwill Impairment in 2012 and Discrete Tax Benefits in 2011 (Millions, except per share data) (Unaudited) Three Months Ended September 30, 2012 2011 Adjusted net income attributable to KBR reconciliation: Net income attributable to
Slide 21: Reconciliation Tables
Reconciliation Tables Reconciliation of EPS Adjusted for Non-cash Goodwill Impairment in 2012 and Discrete Tax Benefits in 2011 (Millions, except per share data) (Unaudited) Nine Months Ended September 30, 2012 2011 Adjusted net income attributable to KBR reconciliation: Net income attributable to K
Slide 22: Reconciliation Tables
Reconciliation Tables Reconciliation of Effective Tax Rate as Calculated to Adjusted Effective Tax Rate Excluding Non-cash Goodwill Impairment (Millions, except per share data) (Unaudited) Three Months Ended September 30, 2012 Numerator for effective tax rate for GAAP and adjusted effective tax rate
Slide 23: Proud History
Proud History
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