Kbr, Inc. · NYSE:KBR
Kbr — D.A. Davidson Eighth Annual E&C Conference (September 2009)
24 slides from Kbr's conference presentation, Sep 17, 2009
Slide 1: D.A. Davidson Eighth Annual E&C Conference
D.A. Davidson Eighth Annual E&C Conference Bill Utt – Chairman, President, and CEO September 17, 2009
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 Half 2009 - $6.3 Billion vs. First Half 2008 - $5.2 Billion » Backlog: 12/31/08 - $14.1 Billion (80% reimbursable / 20% fixed-price); June 30, 2009 - $12.3 Billion (79% reimbursable / 2
Slide 4: Our Aspiration: To be the world's premier engineering, construction and services company
Our Aspiration: To be the world’s premier engineering, construction and services company Mission Values ¾ To safely deliver any project, ¾ Uncompromising commitment to any time, in any environment Health, Safety and Environment for the benefit of our ¾ An open relationship with our customers, shareh
Slide 5: 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 Abu Dhabi Lagos Singapore Angola Jakarta Brisbane Johannesburg Perth Sydney Adelaide Canberra Melbourne 3
Slide 6: Hydrocarbons
Hydrocarbons ¾Gas Monetization ¾Oil & Gas ¾Downstream ¾Technology
Slide 7: Gas Monetization – Solid Market
Gas Monetization – Solid Market Gas Monetization provides pre-feasibility, front-end engineering and design (FEED), and engineering, procurement, and construction (EPC) and construction management (EPCm) services for large, complex liquefied natural gas and gas-to-liquids projects. ¾KBR Current Port
Slide 8: Gas Monetization – Gorgon LNG
Gas Monetization – Gorgon LNG ¾Gorgon LNG Project Details ¾ Kellogg Joint Venture Group (KJVG) – KBR led with 30% JV interest ¾ AUD $2.7 billion EPCm services for KJVG (app. US $2.3 billion) ¾ Three 5 MTPA LNG trains (modular construction strategy) ¾ Gas processing and treatment facilities ¾ Product
Slide 9: Oil and Gas – Growing Opportunities
Oil and Gas – Growing Opportunities Oil and Gas provides field development, feasibility, and detailed engineering and design services for onshore and offshore production facilities and pipelines. ¾KBR Current Portfolio ¾ North Rankin 2 Platform ¾ BP Chirag Oil Project ¾ Chevron Jack/St. Malo ¾ Chevr
Slide 10: Downstream – From Prospects to Projects
Downstream – From Prospects to Projects Downstream serves clients in the petrochemical, refining, coal gasification, and syngas markets, executing EPC projects and providing program management consultancy throughout the world. ¾ KBR Current Portfolio and Prospects ¾ Ras Tanura Integrated Project ¾ Y
Slide 11: Technology – A KBR Differentiator
Technology – A KBR Differentiator KBR Technology Business Segment offers highly efficient, proprietary, and differentiated process technologies, some of which are the most efficient, value-added solutions available in the market for the coal monetization, petrochemical, refining and syngas markets.
Slide 12: Government, Defense & Infrastructure
Government, Defense & Infrastructure ¾U.S. Government and Defense ¾International Government and Defense ¾Global Infrastructure
Slide 13: U.S. Government & Defense – Building on Experience
U.S. Government & Defense – Building on Experience U.S. Government & Defense delivers on-demand support services, life sustainment services, and defense support infrastructure across the full military mission cycle and project program cycle for a diverse client base. ¾LogCAP III & IV ¾ Current LogCA
Slide 14: International Government & Defense
International Government & Defense International Government & Defense provides support and life sustainment services, and defense support infrastructure for Non- U.S. clients across the globe. ¾KBR Current Portfolio ¾ Allenby & Connaught ¾ Australian Defence construction projects ¾ CONLOG and TDA ¾
Slide 15: Global Infrastructure – Design/Build Expertise
Global Infrastructure – Design/Build Expertise Global Infrastructure serves diverse civil infrastructure markets, including recreational and commercial developments, transportation, waste and water treatment, and minerals throughout the world. ¾KBR Current Portfolio ¾ Qatar-Bahrain Causeway ¾ Palm I
Slide 16: Power, Industrial and Commercial
Power, Industrial and Commercial
Slide 17: Power, Industrial and Commercial
Power, Industrial and Commercial ¾Power ¾ Increased bidding activity ¾ Progress Energy Carolinas, Inc. ¾ Solid Waste Authority of Palm Beach ¾ Other projects in Georgia and Texas ¾Industrial and Commercial ¾ Red River Activated Carbon plant ¾ Facility operations and maintenance ¾ Education and healt
Slide 18: KBR Corporate
KBR Corporate
Slide 19: KBR – Strong Revenue Growth
KBR – Strong Revenue Growth ¾Most business units reported improved revenue in first six $6.3B months of 2009 compared to 2008: ¾ Services up 388% $5.2B + 22% ¾ Downstream up 18% $4.2B + 24% ¾ Upstream up 17% ¾ Technology up 2% ¾ G&I down 3% ¾BE&K acquisition was the main 2007 2008 2009 contributor w
Slide 20: KBR – Improving Job Income and Margins
KBR – Improving Job Income and Margins ¾First quarter 2008 included $51 million gain on a favorable $539M arbitration award $457M + 18% + 31% ¾Job income growing with revenue $348M ¾Margin improvement 8% 9% 9% ¾ Benefits from better profitable projects under new management ¾ Zero or lower margin leg
Slide 21: KBR – Quality of Earnings
KBR – Quality of Earnings ¾ Potential disallowed costs for U.S. contracts for Middle East work ¾ Charges on Skopje Embassy in Macedonia in (multiple quarters) ¾ Impairment charges on BRC joint venture in Algeria FY 2007 ¾ Gain on sale of BRC joint venture in Algeria ¾ Lease restructuring ¾ U.K. Road
Slide 22: Solid Backlog & Portfolio Risk Profile
Solid Backlog & Portfolio Risk Profile ¾ No material project cancellations; $12.6B $12.3B - 2% $9.6B + 31% ¾ Second quarter 2009 impacted by LogCAP III task order extension timing and usual project work-off ¾ Improved portfolio mix* (cost reimbursable to fix priced) ¾ Q209 – 79% / 21%; respectively
Slide 23: Prudent Financial Management & Focus
Prudent Financial Management & Focus ¾ Returning Cash to Shareholders ¾ Share repurchase program - $217 million since August 2008 ¾ Quarterly dividend – approximately $32 million per year ¾ Balance Sheet Strength for Growth ¾ Strong cash position - $1.1 billion as of June 2009 ¾ Debt free ¾ Bonding
Slide 24: We Deliver
We Deliver
KBR — D.A. Davidson Eighth Annual E&C Conference (September 2009) on 6ix