Kbr, Inc. · NYSE:KBR
Kbr — Macquarie Capital 2009 Global Infrastructure Conference
17 slides from Kbr's conference presentation, Jun 5, 2009
Slide 1: Macquarie Capital 2009 Global Infrastructure Conference
Macquarie Capital 2009 Global Infrastructure Conference Kevin DeNicola – Senior Vice President and CFO June 5, 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 ¾Revenue: Full Year 2008 - $11.6 Billion; First Quarter 2009 - $3.2 Billion ¾ 2008 Fortune 500 Rating - #234 ¾ Income from Continuing Operations: Full Year 2008 - $308 Million; ¾ 69% increase over Full Year 2007 ¾Backlog: 3/31/09 - $12.8 Billion (78% reimbursabl
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 ¾To safely deliver any project, ¾Uncompromising commitment to any time, in any environment for Health, Safety and Environment the benefit of our customers, ¾An open relationship with our sharehold
Slide 5: 2006 – 2008: Cleaning Up Legacy Issues
2006 – 2008: Cleaning Up Legacy Issues ¾Resolved FCPA ¾4 major arbitrations; 3 complete, 1 pending ¾Remediated, converted, completed several legacy problem projects ¾Grew earnings ex-LogCAP from approximately ($0.40) per diluted share to approximately $1.36 per diluted share from 2006 to 2008 ¾Began
Slide 6: KBR 2009 Strategy: Implementing a Value Chain Model
KBR 2009 Strategy: Implementing a Value Chain Model BE&K BE&K BE&K Conceptual Commissioning Operations FEED Engineering Procurement Construction Studies & Start-up Maintenance Catalyst Wabi Catalyst TGI Interactive Interactive Jordan / BE&K JV 4
Slide 7: Upstream – Large Projects On The Horizon
Upstream – Large Projects On The Horizon ¾LNG Market Opportunities ¾ Gorgon (current FEED work) ¾ Inpex Ichthys (current FEED work) ¾ Other Potential FEED work ¾ PNG ¾ Pluto Train 2 ¾ Segas Train 2 ¾Oil & Gas Opportunities ¾ Regional Focus (Caspian, Asia Pacific, GOM, West Africa) ¾ Granherne / GVA
Slide 8: Services – Bidding Activity Remains Robust
Services – Bidding Activity Remains Robust ¾ Market outlook – active bidding ¾ Power markets remain active ¾ Domestic construction ¾ Canadian markets ¾ General industrial 6
Slide 9: Government & Infrastructure – Building on Experience
Government & Infrastructure – Building on Experience ¾LogCAP III & IV ¾ Current LogCAP III status ¾ LogCAP IV transition status ¾Other G&I Opportunities ¾ Americas Operations ¾ International Operations ¾Skopje Embassy Project ¾Media Publicity 7
Slide 10: Downstream – From Prospects to Projects
Downstream – From Prospects to Projects ¾ Ras Tanura Integrated Project ¾ Yanbu Export Refinery ¾ PetroSA Coega Refinery FEED ¾ Sonangol Lobito Refinery FEED 8
Slide 11: KBR – Looking Beyond 2009
KBR – Looking Beyond 2009 ¾Continued excellence in LNG and gas monetization projects ¾Increased emphasis on growing presence in offshore markets ¾Continue to build out value chain strategy internationally ¾Drive diversification in government sector to complement leading logistics capabilities ¾Conti
Slide 12: KBR – Strong Revenue Growth
KBR – Strong Revenue Growth ¾All business units reported Q109 improved revenue year over year: $3.2B ¾ Services up 427% ¾ Upstream up 23% $2.5B + 27% ¾ Downstream up 13% $2.0B + 24% ¾ Technology up 5% ¾ G&I up 3% ¾BE&K acquisition was the main contributor within the Services business unit 2007 2008
Slide 13: KBR – Improving Job Income and Margins
KBR – Improving Job Income and Margins ¾First quarter 2008 included $51 million gain on a favorable arbitration award $207M $192M - 7% ¾Job income growing with revenue + 92% $108M 8.2% ¾Margin improvement 6.0% ¾ Benefits from better profitable 5.3% projects under new management ¾ Zero or lower margi
Slide 14: KBR – Effectively Managing Overhead Costs
KBR – Effectively Managing Overhead Costs ¾Corporate G&A costs essentially flat over past three years despite increased revenue over same time period $226M $226M + 0% $223M - 1% ¾BE&K acquisition added G&A costs, but offset by improvements throughout entire organization 2.6% 2.6% 1.9% ¾Continued ini
Slide 15: KBR – Solid Backlog and Portfolio Risk Profile
KBR – Solid Backlog and Portfolio Risk Profile ¾No material project cancellations; $13.4B $12.8B - 5% ¾First quarter 2009 impacted by $10.7B + 25% LogCAP III task order extension timing and usual project work-off ¾Improved portfolio mix* (cost reimbursable to fix priced) ¾ Q109 – 78% / 22%; respecti
Slide 16: KBR Corporate - Prudent Financial Management & Focus
KBR Corporate - Prudent Financial Management & Focus ¾Returning Cash to Shareholders ¾ Share repurchase program ¾ Quarterly dividend ¾Balance Sheet Strength for Growth ¾ Strong cash position ¾ Debt free ¾ Bonding capacity capabilities ¾Continued Focus on Cost Saving Initiatives ¾ Scaling back costs
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