November / December 2015 Stuart Bradie President and Chief - PowerPoint PPT Presentation

Investor Presentation November / December 2015 Stuart Bradie – President and Chief Executive Officer Brian Ferraioli – EVP and Chief Financial Officer Zachary Nagle – VP, Investor Relations

Forward-Looking Statements This presentation contains “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Sect ion 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical information. When used in this presentation, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs su ch as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward -looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will be achieved. There are numerous risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from the forward- looking statements contained in this presentation. These risks and uncertainties include, but are not limited to: current or future economic conditions; our ability to obtain and perform under contracts from existing and new customers, including the U.S. Government; exposure to cost overruns, operating cost inflation and potential liability claims and contract disputes; access to trained engineers and other skilled workers; risks relating to operating through joint ventures and partnerships; risks inherent in doing business internationally; potential tax liabilities; maritime risks; changes in the demand for our services and increased competition; protection of intellectual property rights; risks associated with possible future acquisitions; risks related to our information technology systems; impairment of goodwill and/or intangible assets; reduction or reversal of previously recorded revenues; risks relating to audits and investigations, including by governments; compliance with laws and regulations, and changes thereto, including those relating to the environment, trade, exports and bribery; our creditworthiness and ability to comply with the financial covenants in our credit agreement; and other risk factors discussed in our most recently filed Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings. All forward-looking statements attributable to us, or persons acting on our behalf, apply only as of the date made and are expressly qualified in their entirety by the cautionary statements in this presentation. Except as required by law, we undertake no obligation to revise or update forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. This presentation contains the financial measure “EBITDA,” which is not calculated in accordance with generally accepted acco unting principles in the U.S. (“GAAP”). A reconciliation of the non-GAAP financial measure EBITDA to the most directly comparable GAAP financial measure has been provided in the Appendix to this presentation. 2

KBR’s Zero Harm 24/7 5-Year TRIR Performance 0.45 0.4 0.39 0.39 0.37 0.35 0.35 0.35 0.35 0.31 0.34 0.32 0.3 0.30 0.26 0.25 0.23 0.22 0.21 0.2 0.19 0.18 0.15 0.1 0.05 KBR TRIR IOGP Top Q IOGP Average 0 2010 2011 2012 2013 2014 2015 3

KBR Overview • KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons (predominantly Gas Monetization) and government services industries. • More than 100 year proud history. • #424 in Fortune 500 rankings. • ~ 25,000 employees in more than 40 countries. • Customers in more than 70 countries. 4

Strategic Objectives • Focus on differentiated offerings in core markets / clients with emphasis on global sales, commercial rigor and consistent delivery • Streamline operations and significantly reduce costs • Rebalance business portfolio • Continue efforts to proactively resolve commercial disputes – i.e. less litigation • Retain strong balance sheet and employ a balanced capital allocation policy 5 5

Strategic Priorities Early project involvement Priority Markets via differentiated technology Global Hydrocarbons (Gas) & (gas monetization) & International Government specialized consultancy Services services 2 1 Re-focus Growth Strategy 3 4 Pursue Fixed Price EPC when differentiated by: - KBR Technology Global project delivery focus - Related experience organized with regional - Ability to self-perform accountability construction (predominantly gas monetization) 6

Framework to Support Core Focus One KBR: Exit non-strategic businesses: Consistent use & application of - Stand-alone Fixed Price EPC Power standard policies, processes, systems, - Fixed Price U.S. Infrastructure & tools & procedures to deliver U.S. Minerals - Building Group consistency and efficiency 2 1 - Fixed Priced Stand-alone Construction Streamline Operations 3 4 Efficiencies: Allocate capital Be cost competitive; in an efficient $200 million reduction in annual and balanced operating costs by 2016; > $150 million manner in savings already identified / actioned Note: All statements current as of KBR’s 3Q15 earnings call on 11/02/2015 7

Structure – Streamlined / Focused Old KBR operating segment structure (16 business units) KBR Infrastructure, Gas Hydrocarbons Government & Services Operations Monetization Power New streamlined operating segment structure (5 business units) KBR Engineering & Government Technology & Consulting Construction Services 8

Global Leadership Team Stuart Bradie President and CEO E&C Group President 27 Years of Industry Experience Brian Ferraioli John Derbyshire Andrew Pringle Engineering & Construction Engineering & Construction CFO Technology & Consulting Government Services 37 Years of Industry 37 Years of Industry 14 Years of Industry Experience Experience Experience (37 Years Military Experience) Roy Oelking Jan Egil Braendeland Ivor Harrington E&C Americas E&C EMEA E&C APAC 40 Years of Industry 22 Years of Industry 30 Years of Industry Experience Experience Experience David Zelinski Jay Ibrahim Graham Hill E&C Americas (Onshore) E&C MENA Global Sales & Strategy 30 Years of Industry 21 Years of Industry 37 Years of Industry Experience Experience Experience Farhan Mujib Eileen Akerson Nick Anagnostou Commercial General Counsel HSSE 19 Years of Industry 27 Years of Industry 25 Years of Industry Experience Experience Experience 9

Technology and Consulting Business Broad Range of Technologies and Solutions from Wellhead to Specialty Chemicals – Primarily Gas Focused Upstream Downstream Proprietary Semi-submersible hull design Refining (VCC, ROSE, FCC, Hydroprocessing, Distillation) Technologies Monohull vessels Olefins (SCORE, K-COT) Ammonia (KRES, KAAP, Purifier) Chemicals (Phenol, BPA, Acetic Acid, PVC, specialty technologies) Coal Gasification Upstream Downstream Consulting Field development planning Downstream consulting and Services Project assurance Feasibility and revamp studies Integrity management Technical services Structural analysis Automation consulting and project management 10

E&C Core Sectors – Full Service Offering Full service EPC with primary focus on Natural Gas related projects ONSHORE OFFSHORE LNG / GTL ASSET SERVICES Oil & Gas Fixed Platforms Liquefaction Maintenance Refining Floating Facilities Regasification Petrochemicals Modifications Chemicals Hulls, Moorings & Risers FLNG Small Capex Projects Ammonia & Fertilizers SURF FSRU Asset Integrity Gasification Total Pazflor BP Tangguh EBIC Ammonia Plant Maintenance BP Thunderhorse GDF Suez Bonaparte Saudi Kayan MMM 11

Government – Core Services EMEA APAC AMERICAS Home Base Operational Support Asset Management International Base Operations Support Overseas Operational Support Systems Engineering Remote Life Support Services Programme Management Services Integrated Logistics Support Logistics Resilience Planning & Execution Capability Risk Management Training Training Djibouti BOS Project Allenby/Connaught Amphibious and Afloat Support System Heavy Equipment Transporter PMKeyS Technical Refresh Embassy Training and User Support Security Upgrades National Emergency Police Firearms Training Mortuary Arrangements Land 121 Joint eHealth Data and Information Met Police Landing Helicopter Dock Bahrain Life Support Facilities Management Integrator FCO Embassy Life Support Capability Support Contractor 12

KBR Global Operations Moscow Gothenburg Atyrau Edmonton London Seoul Beijing Baku Kabul Wilmington Tokyo Baghdad Delhi Arlington Houston Bahrain Birmingham Kuala Lumpur Monterrey Caracas Saudi Arabia Dubai Mexico City Singapore Pune Freetown Chennai Jakarta Luanda Rio de Janeiro Perth Sydney Canberra Melbourne ~25,000 Employees in more than 40 Countries Customers in more than 70 Countries 13