Kbr, Inc. · NYSE:KBR
Kbr — D.A. Davidson 11th Annual Engineering and Construction Conference (September 2012)
20 slides from Kbr's conference presentation, Sep 11, 2012
Slide 1: D.A. Davidson 11th Annual Engineering and Construction Conference
D.A. Davidson 11th Annual Engineering and Construction Conference Bill Utt - Chairman, President and CEO September 11, 2012 Sue Carter - Executive Vice President and CFO
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 2011 - $9.3 Billion Backlog: June 30, 2012 - $15.2 Billion Headquarters in Houston, Texas ~27,000 employees; 70+ countries KBR is a global engineering, construction, and services company supporting the energy, hydrocarbons, government
Slide 4: KBR's Global Footprint
KBR’s Global Footprint Gothenburg Moscow Edmonton Greenford Ontario Leatherhead Atyrau Frankfurt Calgary Chicago Baku Salt Lake City Charlotte Raleigh Birmingham Wilmington Algiers Baghdad Arlington Atlanta Kuwait City Houston Mobile Dammam Beijing Monterrey Doha Dhahran Dubai MMM Abu Dhabi New Delh
Slide 5: KBR's Three Business Groups
KBR’s Three Business Groups Infrastructure, Hydrocarbons Services Government & Power Gas Monetization N.A. Government & Logistics (NAGL) Construction LNG U.S. Federal Government Refining FLNG Department of Defense Chemicals GTL International Government, Defence Oil & Gas Oil & Gas &
Slide 6: 2Q12 Review - KBR
2Q12 Review - KBR Revenue, excluding LogCAP, up 2% year-over-year Job income margins of 13.1% compared to 12.3% year-over-year Backlog of $15.2 billion compared to $12.0 billion year-over-year FY12 earnings per diluted share guidance in $2.60 to $2.80 range from previous range of $2.45 to $2
Slide 7: Operating Highlights
Operating Highlights Continued strength in operating performance Strong project execution Robust pipeline of project opportunities – currently involved in 19 Hydrocarbon studies, pre-FEEDs and FEEDs, each with significant contract dollar potential for KBR Maintaining focus on corporate cost
Slide 8: Hydrocarbons – Gas Monetization and Oil & Gas
Hydrocarbons – Gas Monetization and Oil & Gas Current Gas Mon Projects Progressing Expanding Share of Wallet for Oil & Gas Gorgon LNG Trains 1-3 Pursuing EPC projects Skikda LNG SARB project Escravos GTL ZADCO project Ichthys LNG EPC Shah Deniz project Good Investment of LNG pre-FEED
Slide 9: Hydrocarbons – Downstream and Technology
Hydrocarbons – Downstream and Technology U.S. Shale Gas Opportunities Growth in Technology Awarded design, construction and technology for Continue to see strong bookings and significant ethylene furnace for INEOS revenue and job income growth Tracking 12 different ammonia projects in U.S. Tec
Slide 10: Services
Services Canada Operations Building Group Strong across variety of markets: Strong multi-family residential and manufacturing Turnarounds / maintenance construction Module fabrication $120 million booked into backlog in 2Q12 Construction projects in Alberta Oil Sands Healthcare and hig
Slide 11: Infrastructure, Government & Power
Infrastructure, Government & Power North American Government & Infrastructure Logistics Stable, strong market in Australia Strong bids outstanding with diverse base Expanded opportunities in Middle East market U.S. Army, Navy, and Air Force (Qatar & Saudi Arabia) Army Corps of Engineers
Slide 12: KBR Financials and Backlog
KBR Financials and Backlog 12
Slide 13: 2Q12 Review - KBR
2Q12 Review - KBR Revenue, excluding LogCAP, up 2% year-over-year Job income margins of 13.1% compared to 12.3% year-over-year Effective tax rate of 14% compared to 23% year-over-year Backlog of $15.2 billion compared to $12.0 billion year-over-year Corporate G&A of $52 million compared to
Slide 14: KBR 2012 Guidance
KBR 2012 Guidance* Full year 2012 earnings per diluted share guidance in $2.60 to $2.80 range: Previous earnings per diluted share guidance in $2.45 to $2.80 range Full year G&A expense approximately $230 million (previous guidance range of $240 million and $250 million) Full year CAPEX of app
Slide 15: Performance Index / Backlog
Backlog 220 210 200 190 Performance Index 180 170 160 150 140 130 120 110 100 90 80 2006 2007 2008 2009 2010 2011 6/30/2012 Revenue Backlog Job Income Backlog Continued focus on job income backlog: Up 38% from December 31, 2011 Up 111% since December 31, 2006 15
Slide 16: Job Income Margins Improving
Job Income Margins Improving 12.8% 12.2% 10.8% First Half 2010 First Half 2011 First Half 2012 16
Slide 17: Tax Rate Improvement Over Time
Tax Rate Improvement Over Time 80% 70% 60% Tax Percentage 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 1H12 Effective Tax Rate Effective Tax Rate Excluding Discrete Items 17
Slide 18: Strong Corporate G&A Cost Control
Strong Corporate G&A Cost Control $240 $230 $220 Corporate G&A $ in Millions $210 $200 $190 $180 $170 $160 $150 2007 2008 2009 2010 2011 2012 Guidance* *Note: ERP spending guidance reflective of $20-$25 million as provided in April 2012 ERP Spend 18
Slide 19: Investment Thesis
Investment Thesis Fundamentally strong, global growth company with diverse portfolio of businesses Multiple platforms for acceleration of new orders across global end markets; strategically placing bets on a number of large opportunities through pre-FEEDs and FEEDs Driving higher job income an
Slide 20: Proud History
Proud History
KBR — D.A. Davidson 11th Annual Engineering and Construction Conference (September 2012) on 6ix