2013 Credit Suisse Engineering & Construction Conference Bill - PowerPoint PPT Presentation

2013 Credit Suisse Engineering & Construction Conference Bill Utt – Chairman, President and CEO Sue Carter – Executive Vice President and CFO June 6, 2013 Zac Nagle – Vice President, Investor Relations & Communications

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 KBR’s business strategies and KBR’s expectations concerning future operations, profitability, liquidity and capital resources. You can generally identify forward- looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should” or other similar words. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from those in the future that are implied by these forward-looking statements. Many of these factors cannot be controlled or predicted. These risks and other factors include those described under “Risk Factors” in KBR’s Annual Report on Form 10-K dated February 20, 2013, Forms 10-Q, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings. Those factors, among others, could cause KBR’s actual results and performance to differ materially from the results and performance projected in, or implied by, the forward-looking statements. As you read and consider this presentation, you should carefully understand that the forward-looking statements are not guarantees of performance or results. KBR cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, KBR cannot assure you that actual results will not differ materially from those expressed or implied by forward-looking statements. The forward-looking statements included in this presentation are made only as of the date of this document. New risks and uncertainties arise from time to time, and KBR cannot predict those events or their impact. KBR assumes no obligation to update any forward-looking statements after the date of this presentation as a result of new information, future events or developments, except as required by the federal securities laws. Note: All statements reflected on this presentation are as of KBR’s 1Q13 earnings conference call on April 26, 2013 2

KBR – A Leading Global E&C Provider  Revenue: Full Year 2012 - $7.9 Billion  Backlog: March 31, 2013 - $14.2 Billion  Headquarters in Houston, Texas  ~ 27,000 employees ; 70+ countries  KBR is a global engineering, construction, and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets. 3

KBR’s Global Footprint Gothenburg Moscow Greenford Edmonton Atyrau Ontario Leatherhead Frankfurt Calgary Chicago Baku Salt Lake City Raleigh Charlotte Algiers Birmingham Wilmington Baghdad Kuwait City Arlington Atlanta Dammam Beijing Mobile Houston Doha Monterrey Dhahran Dubai MMM Abu Dhabi New Delhi Lagos Singapore Jakarta Luanda Rio De Janeiro Brisbane Adelaide Sydney Johannesburg Perth Canberra Buenos Aires Melbourne 4

KBR’s Three Business Groups Infrastructure, Hydrocarbons Services Government & Power Gas Monetization Construction N.A. Government & Logistics (NAGL)  LNG  Refining  U.S. Federal Government  FLNG  Chemicals  Department of Defense  GTL  Oil & Gas International Government, Defence  Power Oil & Gas & Support Services (IGDSS)  U.K. Ministry of Defence  Offshore Canada Operations  Oil Sands  Middle East  Onshore  Mining  Asia Pacific (APAC)  Pipelines  Gas Treating Downstream Infrastructure  Transportation  Refining Building Group  Water  Life Sciences and Education  Petrochemicals  Facilities  Government Buildings  Biofuels  Healthcare  Fertilizers Minerals  Coal, Iron Ore  General Industrial & Aerospace Technology  Base Metals  Food & Beverage  Refining  Material Handling Industrial Services  Petrochemicals  Refining & Chemicals Power & Industrial  Syngas  Power  Oil & Gas  Coal Gasification  Pulp & Paper  Power  Industrial Manufacturing  Pulp and Paper 5

1Q13 Review - KBR  Revenue at $1.9 billion, down 7% year-over-year  Operating Income of $133 million, up 19% year-over-year  Earnings per diluted share of $0.59 compared to $0.61 year-over-year  Backlog of $14.2 billion compared to $15.8 billion year-over-year Note: All statements reflected on this slide are as of KBR’s 1Q13 earnings conference call on April 26, 2013 6

Hydrocarbons – Gas Monetization and Oil & Gas Current Gas Mon Projects Progressing Expanding Share of Wallet for Oil & Gas  Gorgon LNG Trains 1-3  Expansion opportunities at Shah Deniz 2 project in Caspian for EPCm for both onshore and offshore  Skikda LNG  Escravos GTL  Ichthys LNG EPC FLNG Opportunities  FLNG Study for Hoegh LNG  GDF SUEZ Bonaparte Good Investment of LNG pre-FEEDs and FEEDs  Gorgon Train 4 Pre-FEED with expected FEED Oil & Gas Geographically transition  FEED for FPSO topsides and hull in Angola  Kitimat FEED  Recently awarded topsides design for Chevron  Tanzania pre-FEED Lianzi development  Recently awarded Petronas LNG FEED  Activity recovering in U.S. Gulf of Mexico  Caspian Region Opportunities in GTL in the U.S.  North Sea  Australia  Brazil (GVA) 7

Hydrocarbons – Downstream and Technology U.S. Shale Gas Opportunities Ethylene Project in Uzbekistan  KBR last week signed an EPC contract for an  ~ $120 million technology and EPC support contract ammonia plant in excess of $250 million to be  Utilizes KBR’s SCORE™ technology constructed in North America  Recently awarded ~$600 million Dyno Nobel ammonia EPC and technology project in Louisiana Growth in Technology  Recently awarded ~$100 million for EPC for two  Continue to see strong bookings across portfolio of new ethylene furnaces using KBR’s SCORE™ technologies, including ammonia, VCC, and technology ethylene  Working on FEED for fertilizer complex for Ohio  20% job income growth year-over-year Valley Resources  Design, construction and technology for ethylene furnace for INEOS Technology Inroads in China & India  Doubled headcounts in offices during 2011 in Beijing, China and Delhi, India Middle East Remains Robust for  Strong suite of technologies Downstream  Advanced Catalytic Olefins (ACO™)  KBR-AMCDE joint venture increasing work volumes  Veba Combi-Cracker (VCC)  Sadara Petrochemical Complex PMC  Transport Gasifier (TRIG™)  Yanbu Export Refinery  Selective Cracking Optimum Recovery  Jazan Refinery FEED for Gasifier unit (SCORE™)  Ammonia Technology (Purifier™) 8

Services Canada Operations Industrial Services  Strong across variety of markets:  Steady and consistent performance  Turnarounds / maintenance  Successful expansion into Saudi Arabia with SATORP to provide maintenance services at its  Module fabrication Jubail refinery over the next seven years  Construction projects in Alberta Oil Sands  Gas processing projects in Western Canada  Client camp support Building Group  Booked approximately $1 billion in backlog in 2012  Challenging by stabilizing business environment from:  Project awards grew 50% in 2012 compared to 2011  Module fabrication work  Stronger multi-family residential and industrial  Turnaround work manufacturing markets  Gas processing work  Healthcare spending remains slow  Recently awarded:  3-year turnaround services contract for Suncor U.S. Construction Energy’s refinery in Edmonton, AB, Canada  Off-site modularization and pipe fabrication for  3 Gulf Coast projects execution consistent with Shell Canada’s Quest Carbon Capture and project provisions in fourth quarter 2012 Storage project  Bidding only reimbursable work for construction only projects 9