Kbr, Inc. · NYSE:KBR
Kbr — Credit Suisse 2011 Engineering & Construction Conference
18 slides from Kbr's conference presentation, Jun 2, 2011
Slide 1: Credit Suisse 2011 Engineering & Construction Conference
Credit Suisse 2011 Engineering & Construction Conference Bill Utt – Chairman, President and CEO Sue Carter - Executive Vice President and CFO June 2, 2011 Page 1 of 17
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 2010 - $10.1 Billion; Fortune 500 Company #242 Full Year 2009 - $12.1 Billion; Fortune 500 Company #193 » Backlog: March 31, 2011 - $12.0 Billion (80% reimbursable / 20% fixed-price)* March 31, 2010 - $13.3 Billion (79% reimbursable / 19% fixe
Slide 4: KBR's Global Footprint
KBR’s Global Footprint Gothenburg Edmonton Greenford Moscow Leatherhead Calgary Wilmington Frankfurt 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: Hydrocarbons
Hydrocarbons ¾Market-leading position on 5 major LNG projects ¾ Total capital spend ~$46 billion ¾ Pluto 2 FID expected fourth quarter of 2011 ¾ Ichthys FID expected fourth quarter of 2011 ¾ Kitimat FEED expected completion end of 2011 with FID in first quarter 2012 ¾ Browse expected FEED completion
Slide 6: 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 7: 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 8: North America Government & Defense
North America Government & Defense 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 LogCAP III modified to cost-plus-fixed-fee ¾ Expect final award fee und
Slide 9: 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 Ramp-up in North America capital investment: up 10-15% year-over-year ¾ Infrastructure & Minerals ¾ Middle East infrastructure act
Slide 10: 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 ¾Increasing activity in Alberta oil sands region ¾Building Group benefitting from strong sales activity in 2010; seven on-going major hospital proj
Slide 11: KBR Financials and Backlog
KBR Financials and Backlog Page 11 of 17
Slide 12: First Quarter 2011 Earnings Summary
First Quarter 2011 Earnings Summary ¾Revenue up 7% year-over-year excluding LogCAP revenue ¾Operating income of $144 million, up 45% compared to the first quarter of 2010 ¾Earnings per diluted share of $0.69 compared to $0.29 for first quarter of 2011 ¾Cash flows from operating activities of $225 mi
Slide 13: Performance Index
Strengthening Backlog 2006 160 155 Job Income 150 Backlog 145 140 135 Performance Index 130 125 120 115 110 105 100 Revenue 95 Backlog 90 12/06 12/07 12/08 12/09 12/10 3/11 Page 13 of 17
Slide 14: KBR's Backlog Methodology
KBR’s Backlog Methodology ¾For long-term contracts, the amount included in backlog is limited to five years ¾Only projects for actual awards where work scope is definitized are added to backlog ¾IDIQ / MATOC style contracts are only added to backlog when awarded or definitized ¾For projects where KB
Slide 15: Cash Generation & Cash Deployment
Cash Generation & Cash Deployment $569M $319M 2010 Business Cash Acquisitions $265M Generation* & Licensing Arrangements $225M $164M $941M Share $66M 1Q 2011 $786M Repurchases Business & Dividends CAPEX $20M Cash MWKL Pension $54M Generation Acquisition Contribution Other $786M Investing & Financing
Slide 16: Working Capital Management
Working Capital Management ¾Focused on balance sheet ¾Cash neutral or greater on projects ¾Balanced receivables and payables ¾Process efficiencies ¾Collecting on past disputes (EPC 1) ¾Diligently working to resolve disputed withhold amounts Page 16 of 17
Slide 17: KBR Investment Thesis
KBR Investment Thesis • KBR is a catalyst driven growth company across a broad based and diverse series of businesses • Optimism for acceleration in new orders around growth opportunities across markets • Strong balance sheet with emphasis on cash management • Patience, prudence, and thoughtfulness
Slide 18: We Deliver
We Deliver
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