I N V E S T O R E V E N T || 2021
Byron Bright, President Government Solutions UBS SPACE SUMMIT J UNE 1 7 , 2 0 2 1 FORWARD-LOOKING STATEMENT
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,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” or future or conditional verbs such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Such statements are based upon our current expectations and various assumptions, which are made in good faith, and we believe there is a reasonable basis for them. However, because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from the forward looking statements contained in this presentation.
Additional information about potential risk factors that could affect our business and financial results is included in our Form 10-K filed on February 25, 2021 and any subsequent Forms 10-Q and 8-K. We caution you not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update this information to reflect new information or future events or circumstances. This presentation contains the financial measures “Adjusted EBITDA” and “Adjusted EPS” which are not calculated in accordance with U.S. GAAP. A reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EPS and Adjusted Operating Cash Flow to the most directly comparable GAAP financial measure has been provided in the Appendix to this presentation.
D E L I V E R I N G S O L U T I O N S . C H A N G I N G T H E W O R L D We deliver science, technology and engineering solutions to governments and companies around the world.
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . KBR’S VALUE CREATION MODEL
ATTRACTIVE, RESILIENT INVESTMENT THESIS BUSINESS MODEL ▪ Attractive growth and ▪ Future focused, upmarket profitability outlook ▪ Innovative, digitally enabled, THE PEOPLE OF KBR ▪ Healthy margins ADVANCE OUR STRATEGY differentiated solutions ▪ Low risk ▪ Connected and collaborative ▪ Sustainable solutions to enable ▪ “Team of Teams” clients to achieve their ESG goals ▪ Low capital intensity; ▪ Innovative problem solvers ▪ Highly technical, scientific, excellent free cash ▪ Market-leading technical experts classified, operational programs conversion ▪ Deep domain expertise ▪ Protected intellectual property ▪ Unwavering operational focus ▪ Attractive capital ▪ Empowered and accountable ▪ Agile and adaptive to meet the deployment strategy to ▪ Renowned experts most complex requirements accelerate growth and ▪ Experienced management ▪ Deep mission understanding value ▪ Attractive program tenor; Sustainable Defense & resilient portfolio Technology Intel ▪ Well-funded end markets ~$6B ▪ High-quality clients Revenue GS Int’l Profile
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . Science & Readiness & Space Sustainment Leveraging Capabilities across a Broad Client Set
Space Force AFRL SMDC SMC
Innovation Technology NRO NGA DIA NASIC Defense and Intelligence Expertise
NASA NOAA USGS FAA FED-CIV
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . Themes Driving Growth across the Space Domain
▪ Collaboration: Convergence of defense, intelligence, civil and commercial We have acknowledged that Space is a warfighting“ domain similar to air, land, and sea. ▪ Now we must organize and develop the joint force Speed: Rapid capability development to posture for space superiority across the continuum of conflict – and that work is ongoing.
▪ Digitalization: Technology-enabled transformation GENERAL JAY RAYMOND CHIEF OF SPACE OPERATIONS, UNITED STATES SPACE FORCE
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . Defense and Intelligence
Space Position, Modeling Missile Warning C4ISR and Geo-Positioning Situational Navigation & Simulation and & Defense Cyber and Targeting Awareness Timing (PNT) Analysis
High growth, high barriers to entry platform aligned with national security priorities across the highly contested space domain.
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . Federal / Civilian
Mission Systems Satellite Design, ISS Systems Astronaut Health, Remote Sensing for Base, Launch and Engineering Development & Development & Training and Space Climate Research Range Operations Operations Operations Medicine
Highly technical, mission critical platform enabling scientific exploration and research in important areas such as climate change and human performance.
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . KBR – a Leading Space Playing
▪ KBR… an at scale, leader across military, intelligence, fed/civ and commercial space domains
▪ High priority budget and funding environment
▪ Capabilities and solutions enabling clients to progress their most critical objectives across national security, climate change and human performance
▪ Highly technical deep domain expertise, IP and programs create high barriers to entry
▪ Attractive, growing pipeline of opportunities
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . I N V E S T O R E V E N T || 2021
APPENDICES
D E L I V E R I N G S O L U T I O N S , C H A N G I N G T H E W O R L D . Space Superiority | Threats and Demand Signals
Accelerating Contested Space Domain Technology Proliferation Strategic Threats • Re-emergence of long-term, Threat • Adversaries investing in space • Available to adversaries and and counter-space commercial industry strategic adversaries Environment capabilities • Lower barriers to enter space • Adversaries modernizing • Threatens military and civilian domain — launch costs, militaries interests smaller spacecrafts • Near peers investing in space, • Proliferated AI/ML and big data cyber, nuclear, longer standoff capabilities capabilities
• Space domain awareness • Digital systems engineering • Advanced R&D Customer • Multi-domain C2 enabling faster development • Speed/rapid prototyping Capability • Advanced sensors cycles • Integrated missile defense Needs • AI/ML and advanced • Continuous integration of new • Advanced military systems algorithms for autonomy and capabilities big data analysis Space Superiority | Space Mission Operations
Providing secure, reliable command and control, communications, telemetry, and tracking for dozens of DoD, intelligence, civil and allied satellites. As activity in space increases, KBR is partnered with customers in executing mission-critical operations to ensure the safety and availability of space operations for all stakeholders
▪ KBR offers a complete set of ▪ Range operations, including radar, telemetry, tracking, and spacecraft operations, mission communications services for rockets, aircraft, satellites and planning, and command and unmanned aerial systems control solutions. ▪ Launch facility services such as design, ▪ Launch and early orbit analysis and certification of pressure ▪ Flight operations vessels, cryogenic technologies, piping ▪ Network scheduling systems, ground support equipment ▪ Flight dynamics support design, test and integration ▪ Mission data collection and ▪ Provide reliable command and control, distribution communications, telemetry and tracking ▪ Solution portfolio includes for 170+ DoD, intelligence, civil and allied propriety mission operations tools satellites; support of launch, surveillance, and patents supporting navigation, weather and communication constellation management, tasking missions and mission performance Space Superiority | Digital Engineering
KBR is designing and conducting missions in virtual environments to help optimize use of assets. We provide thought leadership to our space customers, enabling the future space enterprise to rapidly deploy capability.
▪ Digital engineering capabilities ▪ Supporting the U.S. Space Force in defining providing rapid insight for development and implementing future command and and modernization of space programs control architecture ▪ Building physics-based models or ▪ Executing DevSecOps pipeline “digital twins” of space assets for U.S. Space Force missions to build the rapid capability ▪ “Flying” digital missions hundreds of deployment infrastructure of times, optimizing use of space assets the future ▪ Collaborating with intelligence analysts ▪ Positioned to provide a full and mission planners on priorities spectrum of support for agile ▪ Providing thought leadership supporting software development for digital engineering research and space programs education for defense and intelligence customers Space Superiority | Space Domain Awareness
No longer is space a benign environment where space objects are only tracked. KBR provides innovations and domain expertise that deliver robust intelligence of what objects in space are doing and why, enabling safe operations for all.
▪ Extensive experience in developing ▪ Solution portfolio includes propriety end-to-end operational space domain mission operations tools and patents awareness (SDA) systems, from supporting constellation management, requirements generation through tasking and mission performance operational test and evaluation SDA systems encompassing all TCPED ▪ Positions in R&D through mission functions (including real-C2 systems) ▪ Expertise developing solutions that operations with multiple customer automate space intelligence positions gives KBR end-to-end processes capability and domain expertise High- Precision ▪ Positioned as the leading R&D Propagation provider for space domain awareness and Change Detection capabilities Tools for Cataloging Space Superiority | Climate Change, Earth Science
KBR is on the frontlines with our customers providing solutions to deliver data to scientist performing critical climate change research. Our capabilities supporting NASA and U.S. Geological Survey (USGS) include operating constellations of spacecraft; receipt, archive, distribution and analysis of Earth observations; and developing advanced technology solutions.
▪ Support USGS science center serving ▪ Operate NASA Earth Science Spacecraft and sustain worldwide climate and research command and control systems communities use of space-collected ▪ Mission systems software development, sensed land data maintenance, upgrade and operations ▪ Receipt, archive, distribution and ▪ Science, research and technology development analysis of Earth observation data efforts for climate change and Earth science and products for understanding of missions natural resources, hazards, land characterization and climate change ▪ Sustaining engineering for life sciences experiments onboard the ▪ Operation of the central data International Space Station exchange for real-time collection and dissemination of commercial and ▪ Data analysis, science data state meteorological data processing and algorithm development Space Superiority | Human Space Flight
KBR is the industry leader in human spaceflight operations. Our deep domain expertise spans human performance, astronaut training, space suit development and mission operations. As NASA and commercial providers position to return to the moon and beyond, KBR has the domain expertise to enable these inspiring future missions.
▪ Operations and maintenance of ▪ Enhancing human health and ground control systems for human performance for spaceflight spaceflight ▪ Extravehicular suit development ▪ Mission operations support including and sustaining for training and mission planning, astronaut and space operations flight controller training, and mission ▪ Development, testing and execution for all humans in space implementation of human ▪ Training simulators systems spaceflight systems and subsystems ▪ SW/HW systems providing space ▪ Space medicine and medical craft simulators for astronaut and equipment flight controller training