Slide 1: KBR to Acquire Centauri
KBR to Acquire Centauri A Highly Strategic, Accretive Acquisition August 19, 2020 The future, designed and delivered. Stuart Bradie – President and Chief Executive Officer Byron Bright – President, Government Solutions Mark Sopp – Executive Vice President and Chief Financial Officer Alison Vasquez –
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this presentation, the words “estimates,
Slide 3: Highly strategic, complementary, accretive acquisition
Highly strategic, complementary, accretive acquisition ▪ Accelerating growth and building long-term value across strategic growth vectors ▪ Centauri – Strategic, high end, accretive ▪ Bolsters KBR’s leadership in space superiority – military/intel, civil (NASA) and commercial ▪ Delivers immediate sc
Slide 4: Accelerating growth and building long-term value across strategic vectors
Accelerating growth and building long-term value across strategic vectors Defense Human Sustainable Space Exploitation Performance Technology Modernization Proud history, bright future. 4 ©2020 KBR Inc. All Rights Reserved.
Slide 5: Centauri: A Highly Strategic, Complementary Acquisition - Why Centauri? Why Now?
Centauri | A Highly Strategic, Complementary Acquisition Why Centauri? Why Now? ▪ Accelerates KBR’s leadership position in space ▪ Strong bipartisan support for investment to superiority – civil, commercial, military/intel sustain and advance critical national security interests across space, cyber,
Slide 6: Centauri At a Glance
Centauri | At a Glance $700M+ ~10% $1B+ Compelling FY2021E REVENUE EBITDA MARGIN BACKLOG & OPTIONS Growth Opportunities ~1,750 ~75% ~80% SPACE SUPERIORITY EMPLOYEES TS / SCI+ CLEARANCES WIN RATE REVENUE BY CAPABILITY REVENUE BY CLIENT DIRECTED ENERGY SPACE DOMAIN AWARENESS Space Space & ISR Intellig
Slide 7: Leading Technology & Expertise Enabling End-to-End Space Solutions
Centauri | Leading Technology & Expertise Enabling End-to-End Space Solutions Space Domain Awareness Communications + Intelligence, Surveillance, Space Superiority & Missile Defense Reconnaissance & Targeting (ISR&T) Orbital Threats Space-Based Space Sensor for Directed Energy Missile Warning & Trac
Slide 8: Franchise Position at the Center of Space Superiority
Centauri | Franchise Position at the Center of Space Superiority Priority Intelligence SIGINT Multi-INT Multi-INT Space Superiority Activity Based Priority-INT GEOINT Intelligence MASINT & Radar Signatures SIGINT - Signals Intelligence GEOINT - Geospatial Intelligence Proud history, bright future. 8
Slide 9: Deep Expertise across Critical DOD Priorities
Centauri | Deep Expertise across Critical DOD Priorities ▪ Leading expertise in computational fluid Space Offense ▪ 1 of 2 contractors with a presence within Hypersonics dynamics and advanced materials rapid and Defense all NRO flying SPOs prototyping ▪ Strong history of utilizing ground and ▪ Natio
Slide 10: Expanding KBR's Platform for Growth
Centauri | Expanding KBR’s Platform for Growth Platform for Growth Space domain awareness, Franchise civil space player; Scale and balance across the & military space and intel emerging commercial space dynamic space frontier Trusted microelectronics and Cyber range expertise, Scale across cyber and
Slide 11: Transaction Overview
Centauri | Transaction Overview EV Multiple ~11x 2021 Adjusted EBITDA Purchase Price ~$800 million, net of tax benefits Leverage 2.5x Net Leverage, with ample liquidity Funding ~$300 million cash, $500 million borrowings Business Centauri will become part of the Government Structure Solutions segmen
Slide 12: Provides Near- and Long-Term Value
Centauri | Provides Near- and Long-Term Value Accelerates growth Attractive returns High cash in strategic vectors and earnings efficiency ❑ Expands KBR “upmarket” into ❑ Adjusted 2021 EPS accretion ❑ ~100%+ cash conversion of new, adjacent vectors with $0.25-$0.30 with >80% of 2021 net income to op
Slide 13: In Summary
IN SUMMARY ✓ Accelerating strategic priorities opposite national security and defense modernization priorities ✓ Expanded high-end capabilities and broadened, deepened customer relationships – great fit ✓ Shared values, mission focus, cultural priorities ✓ Attractive accretion, CAGR, margin expansio
Slide 14: KBR At a Glance (pro forma with Centauri)
KBR | At a Glance (pro forma with Centauri) Business Description Key Factors KBR ensures mission and project success for customers globally with capabilities supporting defense, intelligence, space, aviation and industrial. ~$6B ~9% 30,000 $16.5B 2021(E) Adj. EBITDA EMPLOYEES BACKLOG & KBR creates s
Slide 15: Q&A / Appendices
Q&A Appendices DOING THE RIGHT THING FOR THE PLANET, OUR PEOPLE AND OUR COMMUNITIES WHILE PURSUING BUSINESS GROWTH