Kbr, Inc. · NYSE:KBR
Kbr — Credit Suisse Engineering & Environmental Services Conference 2007
25 slides from Kbr's conference presentation, June 2007
Slide 1: Credit Suisse Engineering & Environmental Services Conference
Credit Suisse Engineering & Environmental Services Conference Bill Utt – Chairman, President, and CEO Cedric Burgher – Senior Vice President and CFO June 2007
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 Service Provider
KBR: A Leading Global Engineering & Construction Service Provider $12.0 Billion Backlog at 3/31/07 f Headquarters: Houston, TX Backlog f FY2006 Revenue: $9.6 Billion Ventures, 5% f Operating History: 100+ years Other E&C, 11% Other G&I, 33% f Employees: 56,000+ G&I-Middle E&C-Gas Engineers: 4,000+
Slide 4: Investment Highlights
Investment Highlights fGlobal market leader in oil and gas (including LNG/GTL) engineering, construction and defense services fCompelling long-term growth opportunities in energy, petrochemicals, defense and infrastructure fBest-in-class technical expertise across business lines fDiverse, blue-chip
Slide 5: Strategic Initiatives
Strategic Initiatives fImprove risk/return profile and achieve “Best-in-Class Risk Awareness” in project pursuits fGrow the North American industrial services and construction business to historic levels fSupplement existing LNG/GTL sales activities by building on legacy refining and petrochemicals
Slide 6: KBR's Global Footprint: Well Positioned for Growth
KBR’s Global Footprint: Well Positioned for Growth Key Growth Drivers Greenford Leatherhead Energy Supply / Demand Imbalance Arlington Houston LNG and GTL Monterrey Dubai Refining and Singapore Petrochemical Capacity Jakarta Geographically Remote Energy Resources Numerous Offices Homeland Security K
Slide 7: Energy & Chemicals
Energy & Chemicals
Slide 8: E&C Services Addressing the Full Facility Lifecycle
E&C Services Addressing the Full Facility Lifecycle Hydrocarbon Resource Project Execute Operate & Monetized Resources Planning Definition Maintain Resources f Feasibility f Technology f EPC-CS (1) f Modifications Studies Packages f EPCm f Mature Facility (2) f Alternative f Front-end f Program and
Slide 9: KBR: The Leading LNG Contractor
KBR: The Leading LNG Contractor Worldwide Natural Gas Demand Gas Monetization Investment (Billion cubic meters) Projected Capital Investment Through 2020 ($ in billions) Growth +31% $200 3,643 Total: 3,245 $250 billion 2,784 $50 2004 2010E 2015E GTL LNG Source: International Energy Agency (IEA). Sou
Slide 10: Broad Energy & Chemicals Expertise
Broad Energy & Chemicals Expertise KBR Capabilities Market Opportunity f Onshore production facilities Global Oil and Gas Demand (Million tons of oil equivalent) row th 9,444 f Pipelines 6,242 +51% G 3,869 OIL & GAS f Offshore fixed platforms / 2,302 FPSOs / SEMIs 3,940 5,575 f 70 year history 2004
Slide 11: Major Awards Drive Significant Backlog Growth
Major Awards Drive Significant Backlog Growth E&C Backlog ($ in millions) BP Tangguh LNG Yemen LNG (Indonesia) (Yemen) 2004 to Q107 CAGR Total E&C: 37% Gas Monetization: 151% $5,713 $5,437 $2,000MM $2,400MM Scope of Service: EPC-CS Scope of Service: EPC-CS $4,799 $1,700 $1,511 Orlando Coal Gasifier
Slide 12: Government & Infrastructure
Government & Infrastructure
Slide 13: World's Largest Government Services Provider
World’s Largest Government Services Provider A Stable Half Trillion Dollar Market… Key Business Drivers U.S. / U.K. Defense Expenditures ($ in billions) CAGR: 8.6% $677 $696 3Overseas Force Sustainment $544 $607 $74 $76 $76 $70 $601 $620 $533 $474 3U.K. MoD Outsourcing 2005 2006 2007 2008 DoD MoD So
Slide 14: LogCAP III – Unmatched Military Support Experience
LogCAP III – Unmatched Military Support Experience (1) COUNTRIES 8 MANAGED WORKFORCE 50,000+ MEALS SERVED 600MM 1ST CONTINGENCY (2) 1994 BOOTS ON GROUND 200,000+ TRUCK MILES 303MM CONTRACT BASE CAMP SUPPORT LOGISTICS SUPPORT Ice Rations & Water Fuel Equipment/Tools/Supplies Support Services Corps Lo
Slide 15: G&I New Project Awards Diversifying Backlog
G&I New Project Awards Diversifying Backlog Allenby & G&I Backlog Connaught AFCAP III ($ in millions) $7,803 $6,536 $3,066 $16.5B(1) $820MM(2) Construction and O&M Contingency Logistics $5,152 $2,543 $4,743 DHS Nationwide $1,079 $2,139 Contingency USAREUR Support $1,732 $1,220 Response Balkans $883
Slide 16: Ventures
Ventures
Slide 17: Ventures
Ventures f New business unit created to provide independent assessment and accountability for project investments f Makes and manages equity investments on a stand-alone basis f No longer participating in project equity investments that would expose us to merchant risk. EBIC Heavy Equipment Transpor
Slide 18: Financial Overview
Financial Overview
Slide 19: KBR Revenue & Backlog
KBR Revenue & Backlog Revenue Backlog ($ in millions) ($ in millions) $13,516 $11,906 $11,963 $10,146 $9,633 $10,589 $2,246 $2,251 $7,092 2004* 2005* 2006* Q106 Q107 2004* 2005* 2006* Q107 G&I E&C Ventures G&I E&C Ventures 2006 Revenue by Geography 3/31/2007 Backlog by Contract Type ($ in billions)
Slide 20: Items Impacting Historical Results
Items Impacting Historical Results Key Items Impacting Results Adjusted Operating Income Less Minority Interest $485 ($ in millions) f Nigeria GTL Project and offshore project losses 5.2% $301 3.8% 3.6% 3.4% f Write-downs on government and $188 infrastructure projects and BRC $72 1.8% f Restructurin
Slide 21: Balance Sheet Supports Growth Opportunities
Balance Sheet Supports Growth Opportunities f Unlevered capital structure f Significant liquidity to pursue prospects and drive continued growth Capitalization @ 3/31/07 Strategic Uses of Cash ($ in millions) •Opportunistic Acquisitions Available Cash 817 Cash Associated with JVs 470 •Technology Inv
Slide 22: Investment Highlights
Investment Highlights Global Compelling E&C Market Growth Leader Opportunities Strong Best-in-Class Management Technical Team Expertise Improving Financial Blue-Chip Profile Client Base Stringent Risk Balanced Project Management Portfolio 21
Slide 23: Appendix
Appendix
Slide 24: Financial Reconciliation
Financial Reconciliation ($ in millions) 2004 2005 2006 Q107 Reported Revenue $11,906 $10,146 $9,633 $2,251 (–) Barracuda-Caratinga & Belanak Projects 245 96 28 0 Adjusted Revenue $11,661 $10,050 $9,605 $2,251 Reported Operating Income ($357) $455 $246 $62 % Margin (3.0%) 4.5% 2.6% 2.8% Losses on Ba
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