KBR 2017 Investor Day at NYSE KBR Investor Day | 2017 | NYSE AGENDA
Time Agenda Speaker 9:00 am – 9:30 am Registration & Breakfast 9:30 am – 10: 50 am Welcome Nelson Rowe, SVP, Investor Relations Welcome Keynote Stuart Bradie, President & CEO Market & Strategy Overview Graham Hill, EVP, Global Business Development & Strategy People, Values & Culture Ian Mackey, Chief Corporate Officer Government Services Overview Byron Bright, President, KBRwyle 10:50 am – 11:00 am Break 11:00 am – 12:15 pm Engineering & Construction Overview Jay Ibrahim, President, EMEA Technology & Consulting Overview Graham Hill, EVP, Global Business Development & Strategy Business Discipline / Risk Mgmt. Eileen Akerson, EVP & General Counsel Financial Targets and Capital Allocation Mark Sopp, EVP and CFO Closing Remarks Stuart Bradie, President & CEO 12:15 pm – 12:30 pm Break / Box Lunches 12:30 pm – 1:30 pm Q&A Session/Lunch KBR Executive Leadership Team
2 2 KBR Investor Day | 2017 | NYSE DISCLAIMER 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 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 such 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 accounting 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.
3 3 KBR Investor Day | 2017 | NYSE Sangachal Terminal, Azerbaijan
Stuart Bradie | President & Chief Executive Officer WELCOME KEYNOTE
KBR Investor Day | 2017 | NYSE ZERO HARM Journey to Zero Harm – Day by Day
100% 90% 80% 70% 73% 60% 70% 62% 50% Zero Harm Not 52% 40% 48% 46% Achieved 30% Zero Harm Achieved 20% 10% 0% 2012 2013 2014 2015 2016 2017
5 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW
. Our Vision . Journey thus far . KBR Today . Corporate Strategy . Long-term Financial Targets
6 6 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Vision
A leading global provider of full life-cycle professional services, project delivery and technologies supporting the Government Services and Hydrocarbons markets, creating exceptional value for customers, employees and shareholders.
7 7 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Vision Breakout growth potential
Attractive, consistent cash flows
Stable, balanced & sustainable growth
Differentiation Operational Excellence Customer Success Financial Strength
Technology Selective Recognized dependable Two end markets at partner global scale Domain expertise Disciplined Long-term engagements Strong balance sheet Program management Risk management Global and Regional Majors Cash flow focused Project delivery Human capital US, UK and Australian Disciplined capital Life-cycle strategy High performance culture Governments allocation
8 8 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Journey thus far
2014 Today
Centralized operations; inconsistent Regionalized management with appropriate corporate global strategy; governance (KBR Way) and clear global strategy
16 business units; numerous end markets; Focus on two end markets through 3 segments; exited all non- excessive overhead strategic businesses; lean cost structure; $200M+ savings Wyle and HTSI acquisitions for full life-cycle professional OCO dependent in Government Services services under one global brand KBRwyle CAPEX dependent; LNG biased; significant oil price Pivoted to gas-facing hydrocarbons; established Brown & exposure in Hydrocarbons Root IS JV for recurring, O&M profits; select technology M&A
Significant legal contingent liabilities Resolved several outstanding disputes; favorable settlement of PEMEX Culture – lacking accountability, energy and Driving to high performance culture – One KBR cohesion
9 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Accountability
. Challenges: − Power project − Downstream EPC − Ichthys LNG − Legacy legal/commercial disputes . Lessons learned . Restructured organization: regionalization, empowerment, appropriate level of corporate governance . Status: − Power project – done − Downstream EPC – on track − Ichthys LNG – managing − Legacy legal disputes – significant progress made 10 10 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW KBR Today
Life-cycle Disciplined Project Technical Attractive Domestic Enduring Industry-leading Professional Services Delivery Differentiation and International Mix Customer Base Safety Record
60%% 75
Recurring Non-Cyclical 40+ 34,000+ Revenues Countries People
11 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW KBR Today – Improved Risk Profile Backlog by Contract Type
Cost Reimbursable, Fixed Price PFI & Services Contracts Contracts (GS, T&C) – Lower 6% Risk ~75% 87% 7% Fixed Price Contracts 2017 earnings (E&C) secured
Total KBR Backlog At 03/31/17: $10.6B + $2.2B Options *Includes KBR share of unconsolidated JVs 12 12 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Core Capabilities across Verticals Government Services Hydrocarbons
. Science & Space . Licensed technology portfolio Technology . Engineering . Proprietary equipment . Consultancy & Advisory . Consulting & Advisory
. Major programs . Major programs Program Management e.g. Deployed operations, PFIs e.g. LNG, Petrochemicals
. Logistics/Theater opening capability . Logistics Project Delivery . Platform & Mission Support . FEED & detailed design . Security Solutions . Differentiated EPC/EPCm
. Base Operations Support Services . Plant operations and reliability Operations & Maintenance . Facilities management integrator . Predictive & proactive maintenance . Satellites and prepositioned stock . Turnarounds & Shutdowns
13 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Life-Cycle Strategy
Visibility
Operations Operations Early Project Longevity Early Project & & Advisory Advisory Contingency Maintenance Track Record Project Project Project Project Delivery Definition Delivery Definition Pull-through
Customer Affinity
Government Services Hydrocarbons
14 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Corporate Strategy
Grow Profits Strengthen Business Acumen Build High Performance Culture
. Leverage full life-cycle . Be selective / manage risk . Lean cost structure offerings . Focus on bottom line and . KBR Way: schedule, cost, . Expand OPEX facing cash quality & safety – business globally Accountability . Strategically allocate capital . Undertake strategic accretive . Human capital and shared M&A values
Customer Affinity & Growth Predictable & Balanced Profitability & Cash Flow
Customer, Employee and Shareholder Success
15 KBR Investor Day | 2017 | NYSE BUSINESS OVERVIEW Financial Targets
Target Target Breakout Potential
Revenues 3 – 5% Revenue CAGR 5 – 10% Revenue CAGR 10 – 25+% Revenue CAGR
7 – 10%1 NI CAGR 10 – 15% NI CAGR 15 – 35% NI CAGR
90 – 110% Cash Flow Conversion 90 – 110% Cash Flow Conversion 90 – 110% Cash Flow Conversion
2018 2019 thru 2021 1. After adjusting for PEMEX gain in 2017 2. NI – Net Income attributed to KBR
16 KBR Investor Day | 2017 | NYSE 16 Graham Hill | EVP, Global Business Development & Strategy MARKET & STRATEGY OVERVIEW
Glen Lyon FPSO, NorthKBR Sea Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW
. Market Overview . Government Services & Hydrocarbons . Our Market Priorities . 2017 Strategic Initiatives . Acquisition Strategy . Business Development Effectiveness . KBR Way
18 18 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Key Takeaways
Positive outlook in Government Services driven by strong US/Europe defense & security focus and international government outsourcing
Positive outlook in Hydrocarbons driven by feedstock advantaged shale gas in the US, LNG supply-demand re-balance in the mid-term and recovering oil prices
Well positioned to capitalize on growth opportunities in Government Services sector and LNG and downstream Hydrocarbons sector in the US and Middle East with significant upside
Strategic culture through the organization improves our market response, differentiation, competitive positioning and M&A focus
19 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Market Overview – Government Services
Market / Funding Addressable Projected Streams Market Growth Rate Market Drivers
. Large effort associated with new generation platforms and other RDT&E $14B 2 – 3% domain specific technologies
Engineering & Program . On-going platform upgrades Management $17B 1 – 2% . Budget pressures and small business inroads US Platform Support / $9B 2 – 3% . Life extension and upgrades to aging fleets MRO
Potential . Continued geo-political threats; increasing troop deployment Logistics & Facilities $25B Breakout . Ongoing Facilities Mgmt requirements in DoE, DoD and NASA
. Geopolitical threats and mass migration challenges Defence & Security $60B 2 – 3% . Fundamental shift towards information enabled capability . UK and Australian commitment to 2% GDP defence spending
Civil Govts & Govt . Increase in outsourcing for non-core and specialist services
EMEA & APAC EMEA $35B 4% Sponsored Entities . Large-scale infrastructure spend – program management
Source: Arena, KBR Analysis Annual Spend; Time frame: 2017 thru 2020 20 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Market Overview – Hydrocarbons Addressable Projected Market Market Growth Rate Market Drivers
. Replacement of declining production to meet growing demand Upstream $33B 11% . Leading to life extension & brownfield – standardization and cost efficiency
LNG . LNG continues to find new markets and importing countries $20B 2% Liquefaction . Increasing demand for low carbon emission fuels globally
. Clean fuels, asset modernization, domestic crude & higher margin push – Revamps Refining $14B 1 – 1.5% . Domestic crude, import reductions, GDP growth – grassroots
. Feedstock advantage Petrochemicals $21B 3.5% . Old & smaller plants – revamps & efficiency improvements Growth rates in . Low cost natural gas KBR focus markets: Fertilizers $9B 4% . 55% capacity >30 years old plants – modernization US – 15% Middle East – 10% Operations & $66B 3% . Reliability, predictive maintenance and remote operations Maintenance . Outsourcing & optimization Source: Rystad, IHS, Fertecon, KBR Analysis Annual Spend; Time frame: 2017 thru 2020 21 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Market Overview – Hydrocarbons Oil Price Forecast Expected 2020 Oil Demand, 100Mbpd
91 Mbpd 9 Mbpd
Demand met by currently producing and Unsanctioned $50 – $60/bbl sanctioned projects oil prices – . Rebound in oil prices provides spur for global upstream spending +ve for KBR . Approx. $55-60/bbl required to meet 2020 demand . American shale to act as a “governor” on oil prices in the medium term Source: IHS & Rystad Gas Price Forecast . Henry Hub prices stabilized at $3/MMBTU . Provides US gas feedstock advantage for the medium to long- term – very positive for US Downstream Industry Low gas prices – . Europe LNG prices set by marginal cost of US gas export +ve for KBR . Asia LNG prices are hybrid – oil indexation and Henry Hub
Source: IHS 22 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW KBR Priorities by Market US EMEA APAC
. Defense . Defense & Security . Defense & Security • Logistics – Sustainment . Civil Governments • Engineering – Platform Support . Government Sponsored Entities • Platform Acquisition . Space • Platform Sustainment • Program Management • Platform Training • Operational Support • Facilities Management Integrator Government Services
Upstream LNG Downstream
. Brownfields . LNG . Refining . Shale oil & gas . FLNG . Petrochemicals . Selective Offshore & Onshore . Ammonia & Fertilizers • US Gulf Coast . Specialty Chemicals • Gulf of Mexico (offshore) • Western Canada • Texas (shale) • Australia (brownfields) • US • North Sea • Russia • Middle East Hydrocarbons • Caspian region (offshore) • East Africa (long-term) • CIS & Russia • West Africa • Caspian (long-term) • SE Asia • Middle East • SE Asia – New Malaysia JV
23 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW 2017 Strategic Initiatives… on target
Grow Profits Strengthen Business Acumen Build High Performance Culture
. Deliver organic growth and . Improve business discipline . Digitalization and Innovation realize synergies in in Hydrocarbons Government Services . Next-Gen technology commercialization . Broaden T&C portfolio and pull through to E&C . Expand life-cycle services model globally (Brown & Root Industrial Services)
24 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW KBR M&A Philosophy Technology Acquisitions Technologies Life-cycle capabilities
Acquisition Wyle and HTSI Strategy
Access to markets or Portfolio optimization geographies B&R IS Acquisitions
. Differentiation Acquisition . Revenue synergies Characteristics . Attractive cash flow
25 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Wyle and HTSI – Philosophy in Action KBRwyle – Fully global integrated life-cycle professional government services business
Legacy KBR Legacy HTSI Legacy Wyle . OCO funded . O&M funded . RDT&E and Fed Civ funded . Logistics & support . Pre-positioned stock . Professional & technical . O&M – BOSS . OEM support services . Outside USA . Domestic USA . Lower margin . NASA satellites . Deep customer relationships . Blue collar . Honeywell contract . Higher margins . Volatile . Reimbursable contracts . UK & APAC business . Cyber security services . Stable
KBR Strategic Objectives in GS: Move up the value chain 26 26 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Business Development Effectiveness
. Robust pipeline . Right leadership . Early engagement Pipeline People . Trained sales personnel . Accountability . Deep market knowledge . Maintain 2-3 year visibility . Close to customers – regional Effective Business Development
Policies & Process Procedures . Pursuit & proposal reviews . Transaction Approval Matrix (TAM) . Partner/Win strategies & process . Appropriate corporate governance . Terms & Conditions / pricing reviews . State-of-the-art CRM tools: . As-Bid and As-Sold quality assurance • Global account management . Win/loss reviews (lessons learned) • Regional account management
Comprehensive, thorough and disciplined
27 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW KBR Way
Right Deal Right Execution Business Project Execution Development Right leadership Client account management Cost & schedule control Sales process, tools & platforms Lessons learned implementation Selective opportunities Productivity & wage risks On Time Sound estimating Corporate Alignment Claims management Competitive pricing On BudgetVendor & subcontract Dynamic team / Return Quality management Realistic schedules Executable strategy Self-perform, Zero Harm Low corporate overhead subcontract or JV Supportive functional departments Balanced risk profile Achievable results Safety in all Right Support
Customer success Employee satisfaction Shareholder returns 28 28 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW An interesting observation…
120.0 35.0 Correlation: 85.3% 30.0 100.0
25.0 80.0
KBR 20.0 60.0 15.0 Brent Crude Oil 40.0 KBR Stock Price 10.0
20.0 Brent Crude 5.0
0.0 0.0 May-13 Nov-13 Jun-14 Dec-14 Jul-15 Jan-16 Aug-16 Mar-17 Sep-17
Brent Crude Oil KBR Stock 29 29 KBR Investor Day | 2017 | NYSE MARKET & STRATEGY OVERVIEW Low oil prices have limited impact on KBR
Upstream Some exposure to low oil price
Refining Low oil prices stimulates this sector 6% 6%
Government % 3 % 45 Services 45% Non-oil facing >40
Government Gas Facing4 Services 43%
1. Shown as a % of expected revenues in 2017 2. Includes KBR share of JVs 3. Non oil-facing Includes LNG, Petrochemicals, Fertilizers, Industrial Services and other sectors 4. Gas-facing sectors include LNG, Petrochemicals, Fertilizers & Industrial Services 30 30 KBR Investor Day | 2017 | NYSE Ian Mackey | EVP & Chief Corporate Officer PEOPLE, VALUES & CULTURE KBR Investor Day | 2017 | NYSE HUMAN CAPITAL
. People . Values & Culture
32 32 KBR Investor Day | 2017 | NYSE HUMAN CAPITAL Human Capital Strategy Aligned to Business Strategy
Attract Develop Retain
. Focus on global/regional/local . Global talent review and . Structured job families and career succession management paths recruitment . Leadership development . Industry benchmarked . Expand in-house talent agency programs for multiple levels compensation and benefits
. Leverage off legacy brands . Global communities focused on . Global/regional/local workforce development planning and mobility . Focus on domain-specific . IMPACT – early career development . Mentor and coaching system for knowledge and skills . ASPIRE – diversity & inclusion talent
Grow profits, strengthen business acumen and build high performance culture
33 KBR Investor Day | 2017 | NYSE HUMAN CAPITAL KBR - A Global Employer
. KBR focuses on leaving a lasting legacy everywhere we work, improving local employment, supply chains, and communities 21,000+ 11,000+ 2,000+ . Setting succession strategies, Americas EMEA APAC including planning, assessment, training needs analysis, management/personal development and coaching . Diverse employee base is a strength 70,000+ Subcontractors
34 34 KBR Investor Day | 2017 | NYSE HUMAN CAPITAL Building a High Performance Culture
Zero Harm Quality . Uncompromising commitment to . Passion to produce quality work health, safety and environment . Value our customer success . Courage to care
Integrity Accountability . Honesty, trust, prudence and tenacity . Empower employees . Corporate social responsibility . Responsibility to stakeholders . Ethics, governance and compliance . Business acumen
Mutual Trust & Respect Leadership . Inclusive and diverse . Lead by example . People-centric . Shared values & purpose . Strategic alignment
35 35 KBR Investor Day | 2017 | NYSE P‐8A | Naval Air Station Patuxent River
Byron Bright | President, KBRwyle GOVERNMENT SERVICES OVERVIEW KBR Investor Day | 2017 | NYSE GS OVERVIEW
. Key Takeaways . GS Vision & Strategy . Business Overview . Project Highlights . Business Development Priorities and Pipeline . Long-term Financial Targets . Breakout Growth Potential
37 37 KBR Investor Day | 2017 | NYSE GS OVERVIEW Key Takeaways
Transformational Wyle and HTSI acquisitions create a global-scale provider of full life-cycle professional and technical services
Dedicated delivery model, under one global brand – KBRwyle generating predictable and sustainable returns
Expanded sales capacity and deep domain expertise allow KBRwyle to take market share and capitalize on breakout growth potential opportunities
38 38 KBR Investor Day | 2017 | NYSE GS OVERVIEW GS Vision & Strategy
Grow Profits Strengthen Business Acumen Build High Performance Culture
. Integrate Wyle and HTSI . Rigorous BD and capture . Bring strategic and cultural under single global brand system – improve sales alignment across integrated effectiveness GS Segment . Take market share . Manage to competitive rates - . Harmonize KPIs to improve . Increase profits via larger highly scalable infrastructure performance, discipline, contracts and select FFP . Relentless focus on business efficiency and common efficiency incentives
Leading provider of full life-cycle professional and technical services to the Government Services Industry 39 39 KBR Investor Day | 2017 | NYSE GS OVERVIEW Business Overview . Global scale through over 60 domestic and over 40 international locations 2017 Revenues . Highly technical and professional services from Wyle and HTSI heritage . Mission support and logistics from the KBR heritage and HTSI heritage . Critical differentiators: EMEA & APAC . Domain expertise 26% . Mission critical services . Large scale & complex environments . Dedicated client delivery model 74% . Diverse customer base with multi-decade relationships: . US Department of Defense . NATO US . UK Ministry of Defence . NASA . Australian Department of Defence Est. $2.7 B . Other government entities Expected Revenues* 2017 . Diverse funding streams – RDT&E, O&M, OCO, NASA & International . Over 90% prime contractor *Includes KBR share of unconsolidated JVs 40 40 KBR Investor Day | 2017 | NYSE GS OVERVIEW GS Today – Greater Balance
Revenue by Funding Streams Backlog by Contract Type Fixed Price Contracts
International OCO 5% 22% 26%
11% O&M DoD
18%
NASA & 23% 95% Other US Cost Reimbursable RDT&E & PFI Contracts 1. Expected 2017 revenues; includes KBR share of JVs Highly technical and professional services across multiple customers, diverse funding streams, across the life-cycle and primarily through long-term reimbursable contracts 41 41 KBR Investor Day | 2017 | NYSE GS OVERVIEW GS Capabilities
. Recognized leader in mission operations and logistics for the world’s most challenging environments . Leading maintenance provider of prepositioned stock for U.S. Army and U.S. Marine Corps GLOBAL LOGISTICS & . 20+ years as a leading provider of expeditionary support services MISSION SUPPORT
. Leading Systems Engineering and Technical Assistance (SETA) provider to US Army Aviation and US Navy . 35+ years of Advisory & Assistance Services to US Army Missile Defense programs and US Navy aviation platforms . Largest independent flight test organization in the US ENGINEERING
. Leading life sciences provider to NASA; Supported every U.S. Astronaut since 1968 . 65+ years of pioneering space engineering and operations . Key provider of ground systems support & mission operations to NASA, USAF & NOAA SCIENCE & SPACE
. UK Army – largest ever UK MoD PFI contract (Allenby Connaught), contract through 2041, including Army 2020 . UK RAF groundbreaking complex, 18-year PFI (MFTS) – awarded in 2016; provision of 38 new training aircraft . UK Army HET 23-year PFI contract including sponsored reserves, contract through 2024 COMPLEX PFI 42 42 KBR Investor Day | 2017 | NYSE GS OVERVIEW Life-Cycle Strategy
. Base Operating Support Services . Space health and human sciences (BOSS) . Advisory & Consulting . Contingency operations & surge . Research & Development capability . Solutions development . Logistics . Inventory / depot management . Maintenance . Prepositioned stock
. Program management . Systems Engineering and Technical . Project delivery Assistance (SETA) . Platform life-cycle support . Sub-systems integration . Test & evaluation . Independent Verification & Validation (IV&V) . Training & syllabus development Government Services . Complex PFI definition
43 KBR Investor Day | 2017 | NYSE GS OVERVIEW Project Highlights
Human Health & Performance NAVAIR: F/A-18 Project Allenby Connaught LOGCAP IV NASA; $1.4B; PoP through 2025 Naval Air Systems Command; UK MoD; $ 11.2B; PoP thru 2041 US Army Sustainment Command; $65m; PoP thru 2020 $3.1B; PoP thru 2018 . Management and integration of NASA . Over 40 years of incumbency on the . Full life sustainment and support for . Theater-opening capabilities for Human Research Program F/A-18 program providing engineering over 20% of the UK Army major U.S. Military operations . Successful astronaut health & & technical support . 530 buildings refurbished or built in . Key support to Operation Inherent performance . Currently leading Service Life first 7 years – ahead of schedule Resolve (Iraq) and Atlantic Resolve . Supported 197 months of continuous Extension Program . Contract expansion in 2017 to provide (Eastern Europe) International Space Station presence . Sole source provider of support to accommodation and support for 3,000 . Unmatched responsiveness to . Leading research, operations and dynamic battlefield requirements – engineering in human space foreign F/A-18 customers additional troops – Army 2020 exploration (Swiss/Kuwait/Finland/Australia) provide all logistics and life support Project Project Project sustainment Operations & Advisory Definition Delivery Contingency
44 KBR Investor Day | 2017 | NYSE GS OVERVIEW Business Development Priorities and Pipeline
Re-compete focus for the base business $64B Value Total GS Pipeline as of April 2017
$13B Leverage the combined capabilities and track Pursuit record to increase win rates $20B Capture Capture large contracts as a prime contractor $24B Bid Preparation
Cross-sell capabilities across geographies $6B Bid Submitted
Strong customer relationships and additional capabilities across the life-cycle position GS to deliver topline synergies 45 45 KBR Investor Day | 2017 | NYSE GS OVERVIEW Capture Revenue Synergies
US EMEA APAC . Leverage SETA expertise . Take FMI and large scale . Exploit KBRwyle System into system life cycle Program Management Engineering principals to sustainment Expertise into ME prove domain knowledge in . Expand facility and government services variety of defense infrastructure asset market programs management across . Capture complex and . Cyber, Sensors, Training, market segments unique programs through Aerospace and Asset . Grow Life Sciences to differentiated PM offerings Sustainment soldier human performance . Platform support / US foreign military sales
46 46 KBR Investor Day | 2017 | NYSE GS OVERVIEW Segment Financial Targets
2018 thru 2021
Revenue CAGR 5 – 8%
GP+EE Margins Upper single digits %
Segment Operating Income Upper single digits % Margins Segment Operating Cash Flow 90 – 110% of Net Income Conversion
Revenue Synergies $300M+ annual run rate by 2020
Target reflects stable and consistent base business; breakout represents upside potential 47 47 KBR Investor Day | 2017 | NYSE GS OVERVIEW Breakout Growth Potential
Opportunities for Breakout Scenarios 8 – 20+% CAGR . Increased global deployment Breakout tempo driving OCO spend . Humanitarian or disaster relief support needs
Revenues Target 5 – 8% 5 – 8% CAGR
2018 2019 thru 2021
Breakout potential can increase exponentially if surge support demands 48 48 KBR Investor Day | 2017 | NYSE GS OVERVIEW
49 49 KBR Investor Day | 2017 | NYSE Ichthys LNG | Darwin Australia
Jay Ibrahim | President, EMEA ENGINEERING & CONSTRUCTION OVERVIEW KBR Investor Day | 2017 | NYSE E&C OVERVIEW
. Key Takeaways . E&C Vision & Strategy . Business Overview . Project Highlights . Business Development Priorities and Pipeline . Long-term Financial Targets . Breakout Growth Potential
51 51 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Key Takeaways
E&C has a balanced risk profile with growing proportion of revenues and earnings from services, in cost-reimbursable and long-term contracts through full life-cycle offerings
E&C focuses strategically on gas and downstream projects together with brownfields and OPEX facing services positioning for pull-through across the life-cycle
With a growing base business, E&C remains well positioned to selectively capture differentiated EPC projects and appropriate breakout growth opportunities when they arise
52 KBR Investor Day | 2017 | NYSE E&C OVERVIEW E&C Vision & Strategy
Grow Profits Strengthen Business Acumen Build High Performance Culture
. Grow core markets: LNG, . Pursue differentiated EPC . Strengthen leadership and Fertilizers, Petrochem & IS projects with lower risk profile supervision
. Capture under-penetrated . Revitalize sales/ BD to exercise . Build a culture of commitment markets: Chemicals & global selectivity and discipline among employees, OPEX facing markets subcontractors and partners . Enhance bid, partner and . Grow in mid-size projects execution scrutiny . Learn from the past ($500M – $1B)
Leading global provider of full life-cycle professional services and project delivery to the Hydrocarbons sector generating attractive and sustainable returns 53 53 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Business Overview
RevenuesChart byTitle Market . One of the world’s largest and comprehensive Other Upstream providers of professional services and projects to 5% the Hydrocarbons industry 11% . Premier project management and major project LNG delivery contractor 30% . Complete maintenance and industrial services 54%
through the Brown & Root brand Downstream . Diverse customer base – Tier 1s Est. $3.0B . Predominantly gas facing including a leading Expected Revenues* position in Olefins, Ammonia, LNG, 2017 Petrochemicals & Chemicals *Includes KBR share of unconsolidated JVs
54 54 KBR Investor Day | 2017 | NYSE E&C OVERVIEW E&C Today – more services, more predictable
Revenue Distribution by Contract Size Backlog by Contract Type Lump Sum EPC 6% 46% 68% Services
54% 32% Major Projects 94%
2014 2017 Services, Maintenance and Reimbursable EPC Contracts 1. Expected 2017 revenues; includes KBR share of JVs
Growing proportion of contracts in professional services through cost-reimbursable and long-term contracts providing stability in revenues and consistency of earnings
55 55 KBR Investor Day | 2017 | NYSE E&C OVERVIEW E&C Capabilities
UPSTREAM LNG DOWNSTREAM INDUSTRIAL SERVICES
Fixed Platforms Liquefaction Refining Maintenance Floating Platforms Regasification Petrochemicals Modifications Hulls, Moorings & Risers FLNG Chemicals & Specialty Chemicals Asset Integrity SURF FSRU Ammonia & Fertilizers Specialty Welding Onshore Turnarounds & Shutdowns Shale Scaffolding
Leading provider of know-how, services Recognized leader in LNG with over 50 Delivered world-class solutions in Full service capability in North America, and projects for the world’s most years of continuous experience with downstream including more than 65 Europe, Russia and Middle East, with challenging oil & gas environments access to all the leading LNG grassroots refineries, 35% of world’s an average tenure of over 18 years, technologies Ammonia plants and 20% of world’s and tenure on some sites for more than Olefins 40 years 56 56 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Life-Cycle Strategy
. Industrial services . Leverage Technology . Maintenance including predictive . Pull-through from T&C . Turnarounds & shutdowns . Early engagement . Specialty welding . Project advisory . Scaffolding . Specialty Consulting . Modifications & small cap projects
. EPC/EPCm . Pre-FEED . Program management . FEED . Construction services . Commissioning & startup Engineering & Construction
57 57 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Operational Excellence Model
. Strong leadership . Effective team design . Lessons learned Plan . Continuous improvement mindset . Focus on project set-up . Training . Efficient processes & tools . Rigorous selection of partners, vendors & subcontractors Operational . Estimating knowledge Learn Execute Excellence
. Vendor & subcontractor management . Accountability . Scope management . Cost & schedule control Control . Design and safety management . Early warning system . Materials and construction management . Quality management . Personnel management & productivity
58 58 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Project Highlights
BP Tortue SADARA Chemical Project . BP . JV between Saudi Aramco and Dow Chemical . Gas Monetization Project . Al-Jubail, KSA . Offshore Mauritania . Pre-FEED + FEED + Program Management . Field Development Planning + Conceptual (including C&SU Support) Engineering . 500M construction manhours . Ongoing Pre-FEED/FEED . TRIR 0.033 . Potential EPC Pull through . 8.5M KBR program management manhours . World's largest petrochemical complex ever built in a single phase Project Project Definition Delivery
59 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Project Highlights
Magnolia LNG Sumatra Oilfield Services . Lake Charles Louisiana . Chevron Indonesia . FEED and EPC of Greenfield . Minas, Duri and Dumai fields, Sumatra . 4 Train x 2.0 Mt/a facility . Just awarded . has all required FERC and DoE permits and approvals . 5 year engineering, program and construction . Shovel Ready management services contract . First mid-scale in the USGC . International Brown & Root Industrial Services . Consortium with local firm
EPC Project O&M Pull Through Delivery 60 60 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Business Development Priorities and Pipeline
Global & regional account focus $81B Value Total E&C Pipeline as of April 2017
Cross selling between T&C, E&C and Industrial $38B Pursuit Services; capture government services expertise $23B Prospect selectivity & bid scrutiny Capture
$15B Bid Preparation Customer intimacy $5B Bid Submitted
Good core customers, prospective new customers and a healthy pipeline
61 61 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Segment Financial Targets
2018 2019 thru 2021
Flat to low Revenue CAGR 10 – 15% single digits
GP + EE Margins Upper single digits %
Segment Operating Income Mid to upper single digits % Margins Segment Operating Cash Flow 80 – 110% of Net Income Conversion
Growing base business, breakout growth opportunities represent significant upside potential
62 62 KBR Investor Day | 2017 | NYSE E&C OVERVIEW Breakout Growth Potential
Breakout Growth Drivers
. Second North American downstream
15 – 30+% CAGR Breakout wave (embryonic) . Feedstock advantage driving LNG export in North America (ongoing) . National government requirements for Target program management for complex projects (US and Middle East Revenues 10 – 15% CAGR infrastructure) . Quicker CAPEX spending recovery
2018 2019 thru 2021
63 63 KBR Investor Day | 2017 | NYSE BP/INEOS Olefins and Polymers | Alvin, Texas
Graham Hill | EVP, Global Business Development & Strategy TECHNOLOGY & CONSULTING OVERVIEW
KBR Investor Day | 2017 | NYSE T&C OVERVIEW
. Key Takeaways . Business Overview . Project Highlights . T&C Vision & Strategy . Long-term Financial Targets
65 65 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Key Takeaways
T&C is a higher growth, high margin business with low risk profile providing key Technologies & Consulting services in the Hydrocarbons sector
T&C’s differentiated technologies and early customer engagement provide selective pull-through opportunities for Engineering & Construction (E&C)
T&C brings key life-cycle capabilities in Hydrocarbons through Early Project Advisory, Licensing, PEQ and Integrity Management
66 66 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Business Overview Broad Range of Technologies and Solutions from Wellhead to Specialty Chemicals Upstream Downstream Proprietary Semi-submersible hull design Olefins (SCORE™, K-COT™) Technologies Monohull vessels Ammonia (KRES™, Purifier™) Chemicals (Phenol, BPA, PC, Acetic Acid, PVC, Nitric Acid, AN & UAN) Acid Treatment, Evaporation & Crystallization Refining (VCC™, ROSE®, FCC, K-SAAT™, MAX-ISOM™) Coal Gasification
Upstream LNG Downstream Consulting Field development planning Concept Development Master planning and Services Project assurance Technology Selection Feasibility and revamp studies Integrity management Project Permitting & Approvals PEQ & Catalysts Structural analysis Constructability & Feasibility Technical services SURF Automation
Specialty Consulting Services
67 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Business Track Record & Key Differentiators
Business Track Record Key Differentiators
Revenues Operating Margins 450 60% T&C capability mix fits well with the needs of 400 emerging markets 50% 350 300 40% 250 Dynamic and dedicated global sales team &
In $M 30% 200 platform – pull-through “watch list” 150 20% 100 10% 50 High value execution centers – engineering & - 0% procurement; and dedicated revamp focus 2009 2010 2011 2012 2013 2014 2015 2016 2017
T&C has consistently delivered high Early customer engagement; global marketing growth and high earnings platform; investment in KBR Consulting
68 KBR Investor Day | 2017 | NYSE T&C OVERVIEW T&C Vision & Strategy
Grow Profits: Expand Grow Profits: Increase Grow Profits: Expand Technology Portfolio Scope of Offerings geographically
. Alkylation . Brownfields & revamps . Prioritize sales efforts in growth markets (Russia, China, Middle . Isomerization . PEQ, catalysts and solvents East) . Polycarbonate . Advanced automation and . Expand consulting presence in digitalization . Mega Nitric Acid Middle East and Asia . Technical services . Mega Ammonia . KBR Consulting . GVA 10000
Selected pull-through opportunities for integrated EPC
Preferred supplier of Technologies and Consulting Services to the Hydrocarbons Industry
69 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Life-Cycle Strategy
. Catalysts . Field development planning . Asset integrity management . Feasibility studies . Remote operations monitoring . KBR Consulting . Real-time advisory . Technology selection . Specialized consulting & advisory . Automation/digitalization
. Proprietary equipment (PEQ) . Technology licensing & BED . Commissioning services . SURF architecture . Training simulators . Revamp FEED . Training services Technology & Consulting . Owner’s engineering
70 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Technology Portfolio Growth Model
PEQ Market/Customer feedback 4. Enhance 1. Identify Catalysts Strategic portfolio review Technical services Technology chain gaps Technology portfolio growth Licensing model In-house Advanced chemical engineering Alliance 3. Commercialize 2. Develop Sales & marketing platform Acquire
Go to Market Channels Direct to Customer
Through KBR in Integrated EPC offering
Through other EPC providers
71 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Project Highlights
Lotte Chemical Titan Haike Ruilin K-SAAT™ Dyno Nobel Ammonia K-COT™
. License + BED + PEQ + . License + BED + EPC+ . License + BED + PEQ + Catalyst Remote Operations Monitoring Proprietary Catalyst . First reference for KBR’s solid . One of the first ammonia plants . First of a kind catalytic cracker acid alkylation technology to be built in the US over the for improving site profitability . Expected online by mid-2017 past 20 years . 5-yr Catalyst sales . China . Plant started up in Oct 2016 . Malaysia . US
Proprietary Life-cycle Proprietary EPC Proprietary Life-cycle Technology Strategy Technology Pull-through Technology Strategy
72 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Project Highlights
Maersk Culzean Hyundai Oilbank ROSE® Eurochem Ammonia Plant
. Concept + FEED + DED for . License + BED+ Equipment + . License + BED + PEQ + topsides facilities + support at . Largest supercritical SDA Catalyst + Automation the Singapore shipyard during designed – in FEED phase Consulting + Asset Integrity fabrication . 58th KBR ROSE® licensee . One of the largest producers in . Ultra-high pressure and high . Expected online by end of 2018 Russia temperature . Daesan, S. Korea . Russia . First gas expected in 2019 . UK
Early Engineering Proprietary Proprietary Life-cycle Engagement Pull-through Technology Technology Strategy
73 KBR Investor Day | 2017 | NYSE T&C OVERVIEW Segment Financial Targets
2018 thru 2021
Revenue CAGR 7 – 10%
GP+EE Margins Low 20s
Segment Operating Income High teens Margins Segment Operating Cash Flow 90 – 110% of Net Income Conversion
Pull-through Potential $500M / year
T&C delivers growth and balance in earnings at relatively low risk; with potential for selective E&C pull-through 74 74 KBR Investor Day | 2017 | NYSE Eileen Akerson | EVP & General Counsel BUSINESS DISCIPLINE / RISK MANAGEMENT
KBR Investor Day | 2017 | NYSE BUSINESS DISCIPLINE
. Business Discipline . Global Ethics Compliance Program . Project Execution Risk Management
76 76 KBR Investor Day | 2017 | NYSE BUSINESS DISCIPLINE Global Ethics Compliance Program
Common Set of Ethics and Legal Legal and Ethical Compliance Principles . In compliance with all applicable laws . KBR does not condone any illegal or unethical . Applicable to all employees, supervisors, directors actions and all third parties acting on behalf of KBR
Culture of Accountability Personal Responsibility . Employees empowered to report any suspected . High standards violations of COBC . Act honestly and ethically . Open communication . Guidance and feedback
Training Ethics Hotline . Company mandated training to the Code of . For guidance when in doubt Business Conduct (COBC) . For reporting suspected violations of COBC
KBR is committed to conducting its business honestly, with integrity, and in compliance with all applicable laws. We do not tolerate illegal or unethical practices by our employees or others working on behalf of the Company
77 77 KBR Investor Day | 2017 | NYSE BUSINESS DISCIPLINE Project Execution Risk Management
. Leveraging lessons learned to improve commercial performance of projects . Adhering to enhanced governance processes in the areas of transaction approval and project oversight to ensure informed risk-based decision making. . Consistent and rigorous application of fit-for-purpose risk processes in particular related to estimating costs, schedule and funding for contractual liabilities. . Increasing and strengthening our commercial risk management teams across all of our business segments. . Training to improve the commercial acumen of our pursuit and project teams with the commitment and energy of our successful Zero Harm initiative.
78 78 KBR Investor Day | 2017 | NYSE BUSINESS DISCIPLINE Reference Project – Ichthys LNG Project status: First train start-up targeted end of 2017 JKC Joint Venture = JGC, Chiyoda, & KBR (30%)
Re-Measurable Lump-Sum Reimbursable 12% of Project 43% of Project 45% of Project
1. Power plant (89% complete): JKC now managing directly 1. Site-based mechanical, Complete with new subcontract labor 2. LNG/LPG tanks (88% electrical, and other work at complete): KHI standing behind Darwin in progress their commitments 3. Remaining work complete
Change orders & entitlement claims being negotiated. JKC has strong commercial, legal, and funding positions.
79 KBR Investor Day | 2017 | NYSE BUSINESS DISCIPLINE Key Takeaways
Robust corporate risk management framework utilizing enhanced, fit-for- purpose policies, processes, tools, training
Global corporate compliance program to prevent, identify and respond to risks
Improved commercial performance via accountability and informed decision making based on lessons learned
Driving a commercially astute culture – shift from “We deliver” to “We win and deliver profitable projects” for KBR
80 80 KBR Investor Day | 2017 | NYSE Mark Sopp | Chief Financial Officer FINANCE STRATEGY, TARGETS AND CAPITAL ALLOCATION
KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW
. Key Takeaways . Overview . Financial Strategy . Long-term Financial Targets . Capital Allocation Strategy
82 82 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Key Takeaways
Professional services and technology oriented – low risk, low capital intensity business generates predictable and attractive cash flows
Net Income growth targeted to outpace revenue growth through scale, selectivity, differentiation, lean cost structure & low capital intensity
Targeting $800M+ of cumulative cash flow over 2017-2021 for deployment actions for enhanced shareholder value creation
83 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW KBR Today
Strategic actions have reduced our risk profile while enhancing our position for breakout opportunities
Operations & Fixed Price GS, T&C, E&C Cost-reimbursable Early Project Maintenance/ – Lower risk E&P services incl. Advisory maintenance Contingency EMEA & APAC 7%
33% 32% 36% 25% Project Definition 64% 62% 5% Americas 36% Fixed Price Project EPC Delivery – Higher risk
High proportion of low risk Life-cycle strategy – No longer Attractive international mix contracts CAPEX or OCO dependent
1. 2017 estimated revenues; includes KBR share of JVs 84 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Financial Strategy
Strengthen Business Emphasize Financial Grow Profits Acumen Discipline
. Promote growth/scale . ‘Cash is King’ mindset . Invest in growth markets . Lean back office/heavy BD . Maintain low cap intensity . Attractive regular dividend . Evolve to higher margin . Cash flow-focused work . Maintain targeted leverage contracts . Commercial discipline & . Synergistic, accretive M&A selectivity in Hydrocarbons . Incentives & accountability . Buybacks with excess cash
Maximizing TSR for Shareholders
85 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Financial Targets – Drivers and Assumptions
. Market outlook: • Moderate growth in government spending in US and UK markets Above market growth in GS contingency operations support • Stable to improving hydrocarbons commodity conditions Modest CAPEX spending recovery in 2018/2019 . Targets reflect current portfolio of KBR; excludes potential M&A . No episodic gains or losses assumed . Annual guidance and long-term targets to be updated beginning each fiscal year
86 86 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Reaffirming Guidance . EPS, excluding legacy legal fees, now expected above mid-point of $1.10 – $1.40 range – Reflects gain on Pemex settlement to be recorded in 2Q17 – Reflects organic growth for GS, T&C and OpEx projects in E&C, contraction in CapEx projects in E&C, and target margins for all segments – Includes $22M, or $0.15 EPS, in amortization – Estimate for legacy legal fees is $9M or $0.07 EPS
. EBITDA range: $300M – $350M
. Effective Tax Rate: 25% – 27%
. Operating Cash Flow: $100M – $200M
87 87 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Adjusted Baseline for 2017
Net Income Range In $Millions Low Consensus High 2017 Street Consensus $189 KBR 2017 Guidance/Implied $179 $200
Pemex Gain 2017 ($26) ($26) ($26) Adj. Baseline for 2017 $153 $163 $174
88 88 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Long-term Targets
2018 2019 thru 2021
5 – 10% Revenue1 Growth Rate 3 – 5% CAGR
2 7 – 10%3 10 – 15% Net Income Growth Rate CAGR
Operating Cash Flow 90 – 110% 90 – 110% Conversion ratio4
1. GAAP revenues 2. Legal legacy costs excluded 3. Growth over 2017 after adjusting for PEMEX gain in 2017 4. Conversion ratio defined by Operating Cash Flow divided by Net Income attributable to KBR 89 89 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Breakout Potential
2018 2019 thru 2021
10 – 25+% Revenue1 Growth Rate 3 – 5% CAGR
2 7 – 10%3 15 – 35% Net Income Growth Rate CAGR
Operating Cash Flow 90 – 110% 90 – 110% Conversion ratio4
1. GAAP revenues 2. Legal legacy costs excluded 3. Growth over 2017 after adjusting for PEMEX gain in 2017 4. Conversion ratio defined by Operating Cash Flow divided by Net Income attributable to KBR 90 90 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Targeted Operating Cash Flow (OCF) 350 Annual 300 250 200 $100 – 200M / year growing to
In $M 150 100 $200 – 300M / year 50 -- 2017 2018 2019 2020 2021 Target Range 1,400 Cumulative 1,200 1,000 800 ~$800M to 1B+ Deployable
In $M 600 Operating Cash Flow 400 200 -- $50 – 100M of CAPEX 2017 2018 2019 2020 2021
91 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Actual Capital Deployed, 2014 – 2016
Capex 6% Dividends Back to 11% shareholders Total % Total 25% Capex $ 74 6%
Buybacks Dividends $140 11% 14% Buybacks $172 14%
M&A and M&A and Divestitures $859 69% Divestitures 69% Total $1,245 100%
92 92 KBR Investor Day | 2017 | NYSE FINANCIAL OVERVIEW Capital Allocation Strategy
. Capex for profitable organic pursuits/projects First Order . Maintain attractive dividend . Maintain gross debt leverage <2.75x EBITDA
Strategic & . Accretive and synergistic M&A Opportunistic . Buybacks with excess cash
$800M+ Targeted cumulative deployable cash by 2021
93 93 KBR Investor Day | 2017 | NYSE North West Shelf LNG | Karratha, Burrup Peninsula, WA, Australia
Stuart Bradie | President & Chief Executive Officer CLOSING REMARKS KBR Investor Day | 2017 | NYSE CLOSING REMARKS Vision
Breakout growth potential
Attractive, consistent cash flows
Stable, balanced & sustainable growth
95 95 KBR Investor Day | 2017 | NYSE CLOSING REMARKS What you can expect
Leverage our full life-cycle professional services, project delivery and technologies to grow profitably
Drive high performance culture through business discipline, operational & delivery excellence and accountability
Capture profitable breakout opportunities by leveraging our differentiated capabilities
Strategically allocate capital with a focus to improve shareholder return
96 KBR Investor Day | 2017 | NYSE CLOSING REMARKS This is the team that is accountable to deliver
Stuart Bradie Mark Sopp Graham Hill Eileen Akerson Ian Mackey Byron Bright President & CEO EVP & CFO EVP, Global BD & EVP & Chief Counsel EVP & Chief Corporate President, KBRwyle Strategy Officer
John Derbyshire Farhan Mujib Jay Ibrahim Greg Conlon Nelson Rowe President, T&C President, E&C President, EMEA President, APAC SVP, Investor Americas Relations
97 97 KBR Investor Day | 2017 | NYSE QUESTIONS? KBR Investor Day | 2017 | NYSE APPENDIX
KBR Investor Day | 2017 | NYSE APPENDIX Glossary of Acronyms
AN – Ammonium Nitrate FSRU – Floating Storage Regasification Unit OEM – Original Equipment Manufacturer APAC – Asia Pacific GAAP – Generally Accepted Accounting Principles OPEX – Operating Expenses bbl – Barrel of Oil GDP – Gross Domestic Product PC - Polycarbonate BD – Business Development GS – Government Services PEQ – Proprietary Equipment BED – Basic Engineering Design IS – Industrial Services PFI – Private Financing Initiative BPA – Bisphenol-A JV – Joint Venture PoP – Period of Performance TM C&SU – Construction & Start-up KCOT – KBR Catalytic Olefins Technology PVC – Polyvinyl Chloride CAGR – Compound annual growth rate KPI – Key Performance Indicators RDT&E – Research & Development and Testing & Evaluation TM TM CAPEX – Capital Expenses KRES – KBR’s Reforming Exchanger System SCORE – Selective Cracking Optimum Recovery TM CIS – Commonwealth of Independent States K-SAAT – KBR's Solid Acid Alkylation Technology SDA – Solvent Deasphalting DED – Detailed Engineering Design LNG – Liquefied Natural Gas SE Asia - South East Asia DoD – Department of Defense LOGCAP – Logistics Civil Augmentation Program SETA - Systems Engineering and Technical Assistance DoE – Department of Energy LPG – Liquid Petroleum Gas SURF – Subsea, Umbilicals, Risers and Flowlines E&C – Engineering & Construction M&A – Mergers & Acquisitions T&C – Technology & Consulting EMEA – Europe, the Middle East and Africa Mbpd – Million Barrels per Day TRIR – Total Recordable Incident Rate EPC – Engineering, Procurement and Construction ME – The Middle East UAN – Urea Ammonium Nitrate EPCm – Engineering, Procurement and Construction management MMBTU – Million British Thermal Units USD - US Dollar EPS – Earnings Per Share MoD – Ministry of Defence USGC – US Gulf Coast TM FCC – Fluid Catalytic Cracking Technology MRO – Maintenance, Repair and Overhaul VCC – Veba Combi Cracking Technology FEED – Front End Engineering Design MTPA – Million Tonnes Per Year FERC – Federal Energy Regulatory Commission NATO – North Atlantic Treaty Organization FFP – Firm Fixed Price NI – Net Income attributed to KBR FLNG – Floating LNG O&M – Operations & Maintenance OCO - Overseas Contingency Operations
100 KBR Investor Day | 2017 | NYSE