Kbr, Inc. · NYSE:KBR
Kbr — Barclays Capital Second Annual Industrials Select Conference (February 2010)
18 slides from Kbr's conference presentation, Feb 17, 2010
Slide 1: Barclays Capital Second Annual Industrials Select Conference
Barclays Capital Second Annual Industrials Select Conference Bill Utt – Chairman, President and CEO Sue Carter, Senior Vice President and CFO February 17, 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 2008 - $11.6 Billion; 2008 Fortune 500 Company #234 First Nine Months: 2009 - $9.1 Billion vs. 2008 - $8.1 Billion » Backlog: 12/31/08 - $14.1 Billion (80% reimbursable / 20% fixed-price); September 30, 2009 - $13.5 Billion (82% reimbursable /
Slide 4: KBR Operates in 45 Countries
KBR Operates in 45 Countries Gothenburg Edmonton Greenford Moscow Leatherhead Calgary Atyrau Baku Arlington Algiers Baghdad Houston Cairo Kuwait City China Monterrey MMM Dhahran Dubai New Delhi Abu Dhabi Lagos Singapore Jakarta Angola Brisbane Johannesburg Perth Sydney Adelaide Canberra Melbourne 2
Slide 5: KBR Organizational Structure in 2006
KBR Organizational Structure in 2006 Chief Executive Officer Energy & Government & Corporate Chemicals Infrastructure Finance Administration Legal 3
Slide 6: KBR Proposed Organizational Structure in 2010
KBR Proposed Organizational Structure in 2010 Chief Executive Officer Government, Defense, Corporate Hydrocarbons Services & Infrastructure; Power & Industrial Finance Gas Monetization Building Group N. America G&D Administration Oil & Gas Canada Operations International G&D Legal Downstream Constru
Slide 7: KBR’s Backlog
KBR’s Backlog ¾Creating a more profitable portfolio during 2009 ¾ Working off lower margin Escravos GTL, LogCAP, and Skikda LNG (reimbursable component) ¾ Adding higher margin projects (Gorgon LNG, Qatar-Bahrain Causeway, Yanbu utilities) ¾What grows backlog? ¾ Gorgon LNG, Solid Waste Authority, Pro
Slide 8: KBR Reported Job Income
KBR Reported Job Income $627M +15% $546M +44% $379M $193M $183M $193M 2007 2008 2007 2009 Nine Months Ended September 30, ME Operations Job Income (LogCAP) KBR excluding ME Operations Job Income 6
Slide 9: LogCAP – Strategically Replacing Income
LogCAP – Strategically Replacing Income Incremental Revenues to Replace LogCAP Volumes LogCAP* Hydrocarbon, Services, or Other G&I Today Future** Revenue ~ $5B Revenue Range ~ $1B - $2B Margin ~ 2.4% Margin Range ~ 6 - 12% Income ~ $120M Income ~ $120M Focus on Prospective Income Drivers * LogCAP ma
Slide 10: Hydrocarbons Market Update
Hydrocarbons Market Update ¾LNG remains robust ¾ Pluto 2 and 3 FEED award ¾ Inpex Ichthys FEED work continues ¾ Browse LNG Basis of Design award ¾Capturing offshore opportunities ¾ Convert FEEDs to detailed engineering, design, and implementation ¾ Expand service offerings from engineering to projec
Slide 11: Government, Defense, Infrastructure, Minerals, Power and Industrial Market Update
Government, Defense, Infrastructure, Minerals, Power and Industrial Market Update ¾ Government & Defense ¾ Expect LogCAP 2010 revenue decline of approximately 50% of 2009 levels ¾ Replacing LogCAP work by diversifying customer base, building on logistical expertise, and expanding geographically ¾ Ne
Slide 12: Services Market Update
Services Market Update ¾Bid/proposal activity continues to strengthen ¾Building Group ¾ Boeing Dreamliner award; Medical College of Georgia, North Carolina Department of Health and Human Services, several hospital construction awards ¾ Gained stability late 2009 with sanctioned projects moving forwa
Slide 13: KBR Financials
KBR Financials
Slide 14: What’s new over past several months?
What’s new over past several months? ¾2010 EPS Guidance ¾ Range of $1.60 to $1.80 per diluted share ¾ Assumes 50% LogCAP revenue decline based on reduced troop levels and LogCAP III to IV transition ¾Fourth Quarter 2009 Events ¾ EPC-1 PEMEX arbitration ¾ The Event Source court ruling ¾ West-side cam
Slide 15: Strong Balance Supports Functional Options
Strong Balance Supports Functional Options Capitalization @ 9/30/09 ($ in millions) Available Cash $ 1,020 Cash Associated with JVs & Projects 205 Discretionary Cash $ 815 Acquisitions Share Repurchases Dividends Reinvest in Existing Business 13
Slide 16: 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 17: Presentation Summary
Presentation Summary • Greater transparency into the KBR organization for stakeholders • KBR is selling work and will continue to sell work • Ample opportunities to replace declining LogCAP work • Strong balance sheet with emphasis on cash management • Patience, prudence, and thoughtfulness in manag
Slide 18: We Deliver
We Deliver
KBR — Barclays Capital Second Annual Industrials Select Conference (February 2010) on 6ix