Kirby Corporation · NYSE:KEX

Kirby — Investor Day (May 2018)

9 slides from Kirby's investor day presentation, May 2018

  1. Slide 1: Capital Allocation Strategy

    Capital Allocation Strategy Analyst Day 2018 Bill Harvey – Executive VP and CFO

  2. Slide 2: Kirby's Capital Allocation Strategy

    Kirby’s Capital Allocation Strategy  Intense focus on earning cost of capital  Disciplined investment approach  Prudent risk management (safety, environmental, and insurance)  Protect the balance sheet – Opportunities tend to emerge counter cyclically  Invest to preserve Kirby’s existing franch

  3. Slide 3: Capital Structure

    Capital Structure 2010 – 2018 Debt-to-Total Capital 39.9% Targa 40% Allied 16 Barges Transp. $69MM 36.0% 10 units Penn $109MM 6 Pressure Maritime Seacor Barges 18 units 27 Barges $41MM $301MM $89MM 31.2% 32.5% 30% 26.9% 26.4% Higman 25.4% 161 Barges $419MM Stewart & K-Sea Stevenson $603MM $757MM 24.

  4. Slide 4: Substantial Cash Generation Capability

    Substantial Cash Generation Capability Kirby consistently generates free cash flow In $ Millions $700 Operating cash flow $601 Capital expenditures $600 (ex-acquisitions) $524 $500 $439 $416 $400 $355 $345 $353 $312 $326 $312 $300 $245 $253 $226 $231 $200-$225 $200 $177 $137 $100 $0 2010 2011 2012 2

  5. Slide 5: Kirby Marine Progression (2014 – 2018)

    Kirby Marine Progression (2014 – 2018) Q1 2014 Q1 2018 Change Number of Inland Barges 878 1,009 +15.0% ç Number of Coastal Barges 72 55 -23.6%  Total Number of Barges 950 1,064 +12.0% ç Inland Bbl Capacity (MM Bbls) 17.4 22.2 +27.3% ç Coastal Bbl Capacity (MM Bbls) 6.0 5.2 -13.3%  Total Capacity 2

  6. Slide 6: Kirby Distribution & Services Transformation (2014 – 2018)

    Kirby Distribution & Services Transformation (2014 – 2018) Q1 2014 Q1 2018 Change D&S Quarterly Revenues $153 MM $401 MM +162.1% ç D&S Quarterly Margins 8.4% 9.6% +1.2% ç D&S Quarterly Operating Income $13 MM $37 MM +186.0% ç Total D&S Assets $573 MM $1,631 MM +184.6% ç  Kirby has created a major n

  7. Slide 7: Substantial Increase in Earnings Power (2014-2018)

    Substantial Increase in Earnings Power (2014-2018) $4.93 $4.11 Increase in Marine Bbl Capacity +17.1% Increase in D&S Revenues +162% $2.502-$3.002 $2.62 Increase in D&S Margins +3% $1.991 Change in Tax Rate 37%  25% Change in Shares (millions) 56.8  59.8 2014 2015 2016 2017 2018 Guidance (1) 2017

  8. Slide 8: Why Invest in Kirby?

    Why Invest in Kirby?  Two strong franchises – Marine Transportation – Distribution and Services  Proven growth ability  Strong outlook in both core businesses – Pricing momentum in key areas – Robust demand outlook in the near future  Conservative financial management – Strong balance sheet – In

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