Kbr, Inc. · NYSE:KBR
Kbr — Credit Suisse 2008 Engineering and Environmental Services Conference
18 slides from Kbr's conference presentation, Jun 5, 2008
Slide 1: Credit Suisse 2008 Engineering and Environmental Services Conference
Credit Suisse 2008 Engineering and Environmental Services Conference Bill Utt – Chairman, President, and CEO June 5, 2008
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 Engineering & Construction Provider
KBR: A Leading Global Engineering & Construction Provider ¾ FY 2007 Revenue: $8.7 Billion; EPS $1.79 (diluted) ¾ 89% International / 11% Domestic Downstream ¾ Backlog at 3/31/08: $13.4 Billion ¾ 76% cost-reimbursable / 24% fixed-price * Government & Infrastructure ¾ Headquarters in Houston, Texas ¾
Slide 4: Upstream Business Unit
Upstream Business Unit Strategic Growth Opportunities Key Projects fMaintain and expand gas monetization leadership fPearl GTL fEscravos GTL fExpand Onshore/Offshore oil and gas fYemen LNG opportunities fTangguh LNG fSkikda LNG fLeverage consulting expertise fKashagan work fNorth Rankin 2 fContinue
Slide 5: Government & Infrastructure Business Unit
Government & Infrastructure Business Unit Strategic Growth Opportunities Key Projects fLeverage capabilities and proven track record to fLogCAP III capture more design and construction work for fLogCAP IV (Awarded) federal, state, and local governments fAllenby & Connaught fCENTCOM fPortfolio divers
Slide 6: Services Business Unit
Services Business Unit Strategic Growth Opportunities Key Projects fGrow domestic construction capability through organic fScotford Upgrader growth and acquisitions Expansion fNorth West Upgrader fExpand industrial services product offerings and projects geographic footprint fBassell chemical plants
Slide 7: Downstream Business Unit
Downstream Business Unit Strategic Growth Opportunities Key Projects fContinue leadership in Program Management fRas Tanura Integrated Consultancy (PMC) Project fYanbu Export Refinery fCapitalize on growing end markets fSaudi Kayan Ethylene/Olefins facility fLeverage in-house and third party technol
Slide 8: Technology Business Unit
Technology Business Unit Strategic Growth Opportunities Key Projects fLeverage intellectual property assets fSUPERFLEX™ - Sasol SA fKAAP™ - MAN Ferrostaal fIncrease pull-through opportunities based on Ammonia plant technology fSCORE™ - Lanzhou China plant fCapitalize on licensing opportunities fNing
Slide 9: Ventures Business Unit
Ventures Business Unit Strategic Growth Opportunities Key Projects fInvest capital and development expertise for pull- fAspire Defence – Allenby & through service opportunities Connaught investment fEBIC Ammonia project fMake/manage equity investments on a stand-alone investment basis fAlice Springs
Slide 10: KBR Investment Thesis
KBR Investment Thesis ¾“Go To” Contractor ¾“Best-in-Class” Risk Awareness ¾Improving Financial Performance ¾Focus on Safety ¾Strategic Uses of Cash 8
Slide 11: “Go To” Contractor
“Go To” Contractor Skikda LNG; Tangguh LNG; Yemen LNG; EBIC Ammonia Project EPC / EPCm Yanbu Export Refinery; Pearl GTL; Ras Tanura; LogCAP III & IV; Lo D Multiple LNG Projects; CONCAP; CONLOG; E gis FE AFCAP; CENTCOM; ti cs EXECUTION ns n / in g Co esig ult PM North Rankin 2; D C Pluto Offshore Pla
Slide 12: “Best-in-Class” Risk Awareness
“Best-in-Class” Risk Awareness Identification Analysis Commercial Risk Measurement Technical Risk Pricing Management Legal Risk Reporting 10
Slide 13: Improving Financial Performance
Improving Financial Performance Recurring Business Unit Income* KBR Total Backlog $13.4B $168M $10.7B + 25% $129M + 30% $117M $8.0B + 34% + 10% 6.7% 6.4% 5.7% Q106 Q107 Q108 Q106 Q107 Q108 Recurring Business Unit Incom e* KBR Backlog Percentages in boxes represent Recurring Business Unit Income Marg
Slide 14: Focus on Safety
Focus on Safety 1.00 0.90 0.83 Construction Industry Institute Rates 2006 CII Recordable Rate 0.56 0.80 2006 CII Lost Time Rate 0.22 0.70 Incident Rate 0.60 0.53 0.50 0.41 0.40 0.30 0.24 0.19 0.20 0.15 0.10 0.00 2006 2007 YTD 2008 Total Recordable Incident Rate Total Lost Time Incident Rate Recordab
Slide 15: Balance Sheet Supports Growth Opportunities
Balance Sheet Supports Growth Opportunities Strategic Uses of Cash Opportunistic Equity Investments in Acquisitions Projects Technology Investments / Return Capital to Acquisitions Shareholders KBR Cash at 3/31/08 ($ in millions) Total Cash & Equivalents 1,927 Cash Associated with JVs 358 Advanced P
Slide 16: Investment Highlights
Investment Highlights Global Compelling Market Growth Leader Opportunities Best-in-Class Stringent Risk Technical Management Expertise Improving Financial Blue-Chip Profile Client Base Strong Balanced Project Management Portfolio Team 14
Slide 17: Slide 17
Slide 18: Appendix - GAAP Reconciliation
Appendix - GAAP Reconciliation Q106 Q107 Q108 Total Business Unit Revenue $ 2,056 $ 2,027 $ 2,519 Total Recurring Business Unit Income $ 117 $ 129 $ 168 Items included in Business Unit Income Government & Infrastructure Barracuda Additional Charge (15) - - Skopje Embassy Provision - (1) (12) Upstrea
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