Slide 1: Q1 Financial Results
Q1 Financial Results June 19, 2014 Stuart Bradie – President and Chief Executive Officer Brian Ferraioli – EVP and Chief Financial Officer Zachary Nagle – VP Investor Relations
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding our plan
Slide 3: Q1 2014 Overview
Q1 2014 Overview New CEO in place and Strategic Review is being launched 10-K Restatement and Q-1 filing complete; current with financial reporting to SEC Q-1 results adversely impacted by Services and IGP Groups while Gas Mon and Hydrocarbons remain strong Canada fabrication / modular assem
Slide 4: Canadian Pipe Fabrication and Module Assembly
Canadian Pipe Fabrication and Module Assembly Seven pipe fabrication/module assembly contracts, unique to our Canada business, that were signed in 2012 – 2013 Represented significant sales growth but modules were larger and more complex than historic projects. Costs increased / productivity decr
Slide 5: KBR First Quarter Consolidated Results
KBR First Quarter Consolidated Results Quarter Ending Commentary ($ in millions, except EPS) Mar 31, 2014 Mar 31, 2013 As expected, bookings light for quarter. Significant improvement in Q-2 (Hydrocarbons Bookings $ 559 $ 1,143 and IGP) Backlog of Unfilled Orders $ 13,013 $ 14,215 Gas Mon perfor
Slide 6: Segment Reporting – Q1 2014 vs Q1 2013
Segment Reporting – Q1 2014 vs Q1 2013 Quarter Ending ($ in millions) Mar 31, 2014 Mar 31, 2013 Revenue Revenue Decrease primarily due to reduced revenues on Gas-to- Liquids and LNG projects in Africa nearing completion Gas Monetization 400 595 Hydrocarbons 452 342 Increase in Hydrocarbons from
Slide 7: Cash / Capital Allocation
Cash / Capital Allocation KBR Cash Balance Return of Cash to Shareholders YTD Since Q1 '14 Q1 '13 Q1 '14 $ in millions $ in millions May-14 Jan-07 Domestic $249 $164 Share Repurchases $56 $94 $681 International $641 $543 Dividends $12 $12 $204 JV $106 $197 Total $996 $904 Total Returned to SHs $68 $
Slide 8: Market Outlook: Gas Monetization
Market Outlook: Gas Monetization Commenced work under Shell Global LNG frame agreement Continued strong pipeline of Pre-Front End Engineering Design, FEED, and EPC opportunities Recently awarded & working on Gulf LNG FERC FEED in U.S. Recently awarded & working an LNG liquefaction Pre-FEED f
Slide 9: Market Outlook: Hydrocarbons
Market Outlook: Hydrocarbons Well placed for additional offshore engineering opportunities for UK, Norway and the Gulf of Mexico FLNG activity growing; engaged in a number of early stage developments with the opportunity of participating into the EPC phase Have won multiple North American refi
Slide 10: Market Outlook: IGP
Market Outlook: IGP Seeing good opportunities with international governments and continued movement in US power markets Aspire defense project in the U.K. – construction phase ending in 2014 with continuation of services phase Multiple additional expansion opportunities in international govern
Slide 11: Market Outlook: Services
Market Outlook: Services Continued opportunities in North American construction and industrial services markets; remains competitive Mexican offshore industrial services business – longer term contracts (i.e., 3 years), reoccurring Well placed to capitalize on the growing industrial services m
Slide 12: Summary
Summary 2014 is a transition year and a strategic review is being launched. However, KBR remains a strong, global company with a diverse portfolio of businesses and technical capabilities Plan to capitalize on strong opportunities using core strengths: LNG, Hydrocarbons and International Governm
Slide 13: Appendix
KBR Appendix
Slide 14: Consolidated EBITDA Reconciliation Q1 2014
Consolidated EBITDA Reconciliation Q1 2014 Quarter Ending ($ in millions) Mar 31, 2014 Mar 31, 2013 Net Income (Loss) Attributable to KBR ($43) $ 88 Add Back: Interest Income (Expense) ($2) ($1) Provision for Tax ($21) ($30) Depreciation & Amortization ($18) ($15) Consolidated EBITDA ($2) $ 134 Note
Slide 15: KBR’s Four Business Groups
KBR’s Four Business Groups Gas Monetization Services • Liquefied Natural Gas • Modular Construction and Fabrication • Turn-Around Services • Pipe Fabrication • Startup Services • Gas-to-Liquids • Construction • Industrial Services Hydrocarbons Infrastructure, Government & Power • Upstream • Propriet