Kbr, Inc. · NYSE:KBR
Kbr — Investor Presentation (March 2024)
23 slides from Kbr's investor presentation, Mar 12, 2024
Slide 1: Sustainable Technology Solutions Primer
Sustainable Technology Solutions PRIMER March 12, 2024
Slide 2: Jamie DuBray, VP Investor Relations
Sustainable Technology Solutions PRIMER Jamie DuBray VP Investor Relations 2
Slide 3: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance, backlog information, future demand expectations and other information that is not historical. When used in this presentatio
Slide 4: Stuart Bradie, President & CEO
Sustainable Technology Solutions PRIMER Stuart Bradie President & Chief Executive Officer 4
Slide 5: Unique, investible, IP-based enabler of energy trilemma
Unique, investible, IP- based enabler of energy trilemma Highly trusted global capability with significant installed base and track record of delivery Underpinned by mega-investment needed to meet growing cleaner energy demand 5
Slide 6: Sustainable Technology Solutions Primer Video
Sustainable Technology Solutions Primer Video 6
Slide 7: What We Do
What We Do Project Management Complex Program Consultancy (PMC) Development Machine Learning (ML) Design & Engineering Solutions Sustainable Enhanced Schedule Optimizations Solutions Strategic Planning Proprietary Procurement and Construction and Advisory Equipment (PEQ) Management (PCm) Proprietary
Slide 8: EBITDA Contribution across asset lifecycle
Lifecyle Customer Capex 75-80% EBITDA Contribution Customer Opex 20-25% Phase 1 Phase 2 Phase 3 Phase 4 (<1 year) (~1 Year) (~2-5 Years) (Ongoing/Perpetual) Strategic Planning Technology and FEED Execution Operation and Feasibility Studies Engineering • Proprietary Equipment (PEQ) • Technology Led I
Slide 9: STS at a Glance
STS at a Glance Enduring growth outlook as STS is enabler of Energy Trilemma 80+ 38 Decades 20%+ Protected technologies Countries of operations Average client tenures 2023 Adj. EBITDA1 % Expanding, sustainability- Global installed base across Loyal, long-term, well- High margin, high cash fl
Slide 10: Key Financial Highlights
Key Financial Highlights KEY HIGHLIGHTS $336M 20%+ 20-25% Double-digit EBITDA growth 2023 Adj. EBITDA1 2023 Adj. EBITDA1 Margin 2022A – 2025E Adj. EBITDA2 CAGR Scalable with high margin IP Low capital intensity; high free cash conversion $5Bn ~100% ~65% Strong geographic 2023 Backlog Free Ca
Slide 11: Leading the Energy Trilemma
Leading the Energy Trilemma SERVICES ORIENTED Service Peers Service w/ Limited Technology IP Peers KBR is the only listed company offering both Services and IP with a Sustainability focus. Sustainable Technology IP Peers NO SERVICES Private Public Peers listed in alphabetical order LIMITED TECHNOLOG
Slide 12: STS Margin Composition
STS Margin Composition Weighted Average Product/Solution Lines (PSLs) Margin PSL Mix EBITDA Contribution Sustainable Technologies ~25% 40% - 55% ~10% - 14% Sustainable Solutions ~15% 45% - 60% ~7% - 9% ~20% All contracts are performance-based and generate positive economies of scale with growth due
Slide 13: Jay Ibrahim, President, Sustainable Technology Solutions
Sustainable Technology Solutions PRIMER Jay Ibrahim President, Sustainable Technology Solutions 13
Slide 14: The Energy Trilemma Market Opportunity
The Energy Trilemma Market Opportunity Delivering More Geopolitical turmoil has exposed the fragility of global energy systems Ensuring adequacy, affordability and reliability of energy sources Competitive advantage: Global presence, installed base, IP for higher throughput Delivering Cleaner
Slide 15: Growth Vectors
Growth Vectors Traditional Vectors New Energy Vectors Blue Ethylene 60X Ammonia 1.5X LNG 50X Green Ammonia 40X Green H2 Grey 30X 1.25X Ammonia 20X Blue H2 Grey H2 Plastics 10X Recycle Nat Gas SAF Crude CCUS 1X 1X 2020 2030 2020 2030 Industry Investment 2020 2025 2030 Traditional Vectors $390B $580B
Slide 16: Global Presence
Global Presence 2023 Revenue 2024-2028 Growth Outlook Middle East 20%+ 2022 Revenue Expect growth from Saudi Arabia Highly capitalized/seeking energy diversification and decarb Middle East North America 5-10% Expect growth from IRA Decarb and blue/green adoption; lower energy consumption growth Nort
Slide 17: Top Customers
Top Customers Traditional Vectors New Energy Vectors Customer EBITDA 1M relative to scale: Excludes unconsolidated JVs 17
Slide 18: Technology Portfolio Expansion
Technology Portfolio Expansion Added 70+ technologies since 2010 Robust and growing portfolio of patented Chematur technologies – from 10 technologies in 2010 to Purchase ~70% 80+ today External Mura Investment Diverse, globally relevant, technology portfolio mitigates risk of regional instabili
Slide 19: Book of Business
Book of Business 2024 Profit Source Trajectory • Over 85% of work for 2024 is in our book of business today with high Book of confidence Business Long Term • Of this, ~50% is coming from long term New 85%+ projects which are 2 years or more Work Short Term • We have significant, long-term visibility
Slide 20: Risk Profile
Risk Profile Highly Controllable; Predominantly Back-to-Back Defined Rate PSL Offering Unit Price Paid in Advance with Suppliers Rates include with Incentives Risk Profile Overhead and Profit Concept and Feasibility Studies Very Low Proprietary Technology Licensing X X Low Sustainable Proprietary Eq
Slide 21: Key Takeaways
Key Takeaways Sustainable Technology Solutions PRIMER SUPPLEMENT 21
Slide 22: Glossary
Glossary Earnings before interest, taxes, depreciation EBITDA MSA Master Service Agreement and amortization Cash flow from operations less capital FCF NOC National Oil Company expenditures IEC International Energy Company PEQ Proprietary Equipment IP Intellectual Property PMC Program Management Cons
Slide 23: Sources
Sources Traditional and New Energy Vectors & Industry Investment OPEC World Oil Outlook ('23) Enterprise Products Analyst Day Presentation ('23) IEA World Energy Outlook ('23) IEA Energy Transition Outlook ('23) BP Energy Outlook - New Momentum ('23) McKinsey Global Energy Perspective ('23) Sh