KBR IR Presentation 2018.06

Investor
Presentation
May / June 2018

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.
2 Investor Presentation | KBR

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.

Business Overview | KBR At A Glance
2017 Revenue 2017 EBITDA (1)
HS 34,000 People Worldwide
HS 30%
40%
GS
$4.2 B GS $393 M Operations in 40 Countries
53% 50%
Tech
Tech
20%
7%
serving government customers globally, capabilities that cover the full lifecycle of
Government Services defense, space, aviation and other government programs and missions
proprietary technology focused on the monetization of hydrocarbons in ethylene and

Technology petrochemicals; ammonia, nitric acid and fertilizers; oil refining and gasification
onshore oil and gas; LNG/GTL; oil refining; petrochemicals; chemicals; fertilizers;
Hydrocarbons Services differentiated EPC; maintenance services; offshore oil and gas floating solutions; program
management and consulting services
(1) Excludes Non-Strategic Businesses and is shown prior to the impact of Corporate / Other expenses.

Business Overview | Core Capabilities across Verticals
Government Services Hydrocarbons
 Science & Space  Licensed technology portfolio

 Engineering  Proprietary equipment
Technology  Consultancy & Advisory  Consulting & Advisory
 Major programs  Major programs

Program Management e.g. Deployed operations, PFIs e.g. LNG, Petrochemicals
 Logistics/Theater opening capability  Logistics

 Platform & Mission Support  FEED & detailed design
Project Delivery  Security Solutions  Differentiated EPC/EPCm
 Base Operations Support Services  Plant operations and reliability

 Facilities management integrator  Predictive & proactive maintenance
Operations & Maintenance  Satellites and prepositioned stock  Turnarounds & Shutdowns

Business Overview | KBR’s Transformative Journey
2014 Today
Centralized operations; inconsistent Regionalized management with appropriate corporate governance (KBR
global strategy Way) and clear global strategy
Reduced to 3 segments focused on 2 end markets; exited all non-strategic

16 business units; numerous end markets; excessive businesses; lean cost structure; $200M+ savings
overhead
Wyle, HTSI and SGT acquisitions for full life-cycle professional services under
OCO dependent in Government Services one global brand KBRwyle
Pivoted to gas-facing hydrocarbons; established Brown & Root IS JV for recurring,

CAPEX dependent; LNG biased; significant oil price exposure in O&M profits; select technology M&A
Hydrocarbons
Resolved several legacy disputes
Significant legal contingent liabilities
Driving to high performance culture – One KBR
Culture – lacking accountability, energy and cohesion Continuing transition to stable, recurring earnings base and attractive cash flow
ONGOING
generation (e.g. acquisition of SGT, Aspire)

Business Overview | KBR’s Transformative Journey
Technology
Technology
14%
5%
Pre-Transformation
Non-Strategic
Fixed Price 14%
43%
69% HS
57% Gov’t Services 29% 57% HS
Cost Reimbursable, 13%
PFI & Services Gov’t Services
Contracts
Technology
Technology
1%
6% 17%
Today
93%
Fixed Price HS
7% Gov’t Services 32%
61%
Gov’t Services 56%
Cost Reimbursable,
27%
PFI & Services
Contracts HS
CONTRACT MIX REVENUE EBITDA (1)

High proportion of cost-reimbursable contracts Increased revenue streams from Gov’t Services Earnings from predictable, higher margins
Note: Pre-Transformation period as of FYE 2013. Current period as of FYE 2017, pro forma for SGT and our increased share in unconsolidated revenues from Aspire JV.
(1) Excludes Non-Strategic Businesses and is shown prior to the impact of Corporate / Other expenses.

Business Overview | KBR Today – Low Risk Contract Portfolio
 Step-change in backlog/future visibility

2017 Backlog by Contract Mix (1)
‒ 77% of earnings for 2018 secured in backlog
93% Fixed Price Contracts  Majority of KBR backlog is currently either long-term,
Cost Reimbursable, 6% (GS, T&C) – Lower Risk
PFI, & Services Contracts
1%
reimbursable, PFI or service contracts with a lower risk
Fixed Price Contracts
(E&C)
profile and predictable cash flows
‒ >75% of 2018 earnings from low risk/predictable GS and Tech
businesses
‒ Higher proportion of HS from services and reimbursable
2017 Backlog with Option Years
projects
 Incremental backlog from SGT and Aspire of ~$9B

$22B
(including Options) is predominantly cost-
$13B
reimbursable/PFI
 GS backlog excludes unexercised options and ID/IQ and
KBR excluding Acquisitions KBR including Aspire & SGT MATOC contract values not yet under task order; work
ultimately realized may be significantly higher
Note: Includes KBR share of unconsolidated JVs ‒ Current estimate $2.8B in additional unrecognized backlog
1. Shown pro forma for Aspire and SGT.

GOVERNMENT SERVICES OVERIEW

GS Overview | Business Overview
 Global scale through over 60 domestic and over 40 international locations
 Highly technical and professional services from Wyle, HTSI, and SGT 2018 Revenues
 Mission support and logistics from the KBR heritage and HTSI
EMEA &
APAC
Critical Differentiators Divers Customer Base Diverse Funding Streams 32%
 Domain expertise  US Department of Defense  RTD&E US

68%
 Mission critical services  UK Ministry of Defence  Operations & Maintenance
 Large scale & complex  Australian Department of  OCO

environments Defence Est. $3.5 B
Expected
 Dedicated client delivery model  NATO / NASA  NASA Revenues*
2018
 Other government entities  International *Includes KBR share of unconsolidated JVs

GS Overview | GS Today – Greater Balance
Current Revenue by Funding Streams (1) Pro Forma Revenue by Funding Streams (1)
OCO
OCO
20% International
15%
International 34%
30%
18% O&M DoD 14% O&M DoD
12% 22% 15%

20%
NASA & Other
NASA & Other RDT&E
US RDT&E
US
Highly technical and professional services across multiple customers, diverse and recurring funding streams,
across the life-cycle and primarily through long-term reimbursable contracts
1. 2017 revenues; includes KBR share of unconsolidated JVs. Pro Forma includes Aspire and SGT in the International and NASA buckets, respectively.

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
 20+ years as a leading provider of expeditionary support services GLOBAL LOGISTICS &
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

GS Overview | Outlook: Strong Growth
 Strong 2018 U.S. Government Budget
‒ Defense spending increase across multiple funding streams, including

Base and OCO Budgets, solidifies LogCAP in 2018/19
‒ Emphasis on technology innovation and Space Based capabilities across

civil, military, and National security programs
 U.K. and Australia governments committed to increase defense spending to

2 % GDP with a focus on intel, simulation, naval engineering, security and
contingency operations
 Expansion opportunities for the U.K. and Australian MoD leveraging

KBRwyle for expanded defense consulting services
US Defense vs. Non Defense Discretionary NASA Budget

Spending Projections $20.0
800 $19.8
700
$ Billions
$19.6
600 $19.4
500 $19.2
400 Target Gross Profit Margins including Equity In Earnings: Upper-
$19.0
Single Digits % to Lower-Double Digits %
$18.8
2016 2017 2018 2019 2020 2021 2022 2023
Defense Non Defense

GS Overview | Business Development Priorities and Pipeline
Re-compete focus for the base business $72B Value

Total GS Pipeline as of April 2018
$11B
Leverage the combined capabilities and track record to Pursuit
increase win rates
$9.9B
Capture
Capture large contracts as a prime contractor
$4.0B
Bid Preparation
Cross-sell capabilities across geographies $8.6B

Bid Submitted
Strong customer relationships and additional capabilities across the life-cycle position GS to deliver topline synergies

TECHNOLOGY OVERIEW

Technology Overview | Business Overview
 Global business providing technologies, equipment, catalyst supply and knowledge based services
 ~35 Technologies in the current portfolio 2018 Revenues
 Serving refining, petrochemicals, specialty chemicals, gasification, ammonia and fertilizer markets Catalyst
10%
Expand Technology Portfolio Increase Scope Offerings Expand Geographically

30%
 Alkylation  Brownfields & revamps  Prioritize sales efforts in 60%
 Isomerization  PEQ, catalysts and solvents growth markets (Russia,

Proprietary License &
 Polycarbonate  Advanced automation and China, Middle East) Eqpt. Eng.
 Mega Nitric Acid digitalization  Expand consulting presence

Est. $0.3 M
 Mega Ammonia  Technical services in Middle East and Asia
Expected
 GVA 10000 Revenues
2018

Technology Overview | Capabilities
Broad Range of Technologies and solutions from Wellhead to Specialty Chemicals All markets
Refining Ammonia and Syngas Proprietary

• ROSE® • Ammonia Equipment &
• VCC™ • Weatherly Nitric Acid Catalysts
• FCC, MAXOFIN, MAXDIESEL • Weatherly Ammonium Nitrate,
• Hydroprocessing UAN
• Advanced Distillation • Syngas, Coal Gasification • Internals
• K-SAAT™ • Specialized service
• MAX-ISOM
• Proprietary design
• Aromatics Extraction
• Proprietary catalysts
Olefins Inorganics
Ecoplanning Evaporation &
• SCORE™ Crystallization
• K-COT™ • Purified Phosphoric Acid
• Fly Ash Crystallization
• Metal Sulfates recovery
Automation and
Chemicals Process Technologies
Plinke Acid Treatment
• Phenol/Acetone
• High concentration
• BPA separation and recovery
• Polycarbonate • InSite® Performance
• Nitration of Benzene
• PVC Monitoring
• Acetic Acid • OTS, OMS
• Vinyl Acetate Monomer • Technical Services
• NExOCTANE™, NExETHERS™
Proprietary Technologies

Technology Overview | Outlook: Steady to Growing
 Increased demand for petrochemical technologies in

feedstock advantaged territories (i.e. North America,
Russia & Middle East) and in strong consumer markets
(China & India)
 Increasing demand for niche refining technologies with

changing maritime fuel specifications and regulations
 Strong demand for new & revamp projects in response

to improving market fundamentals
Target Gross Profit Margins:

Mid-Twenties % On Average
Poised to deliver high growth and earnings

HYDROCARBONS SERVICES OVERIEW

HS Overview | Business Overview
Revenues by Market
 One of the world’s largest and comprehensive
providers of professional services and projects to Other Upstream
the Hydrocarbons industry 13% 11%

 Premier project management and major project
delivery contractor
Downstream 26%
 Complete maintenance and industrial services LNG
through the Brown & Root brand

50%
 Diverse customer base – Tier 1s
 Predominantly gas facing including a leading
position in Olefins, Ammonia, LNG, Petrochemicals Est. $2.4B
& Chemicals Expected
Revenues*
2018
*Includes KBR share of unconsolidated JVs

HS Overview | HS Today – More Services, More Predictable
Revenue Distribution by Contract Size (1) Backlog by Contract Type
44% Lump Sum EPC
74% Services
56%
26% Project Delivery
Services, Maintenance and Reimbursable EPC

2014 2017 Contracts
Growing proportion of contracts in professional services through cost-reimbursable and long-term contracts
providing stability in revenues and consistency of earnings

HS Overview | HS 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 and Delivered world-class solutions in Full service capability in North America,
Recognized leader in LNG with over 50 downstream including more than 65
projects for the world’s most challenging oil Europe, Russia and Middle East, with an
years of continuous experience with access grassroots refineries, 35% of world’s
& gas environments average tenure of over 18 years, and tenure
to all the leading LNG technologies Ammonia plants and 20% of world’s Olefins on some sites for more than 40 years

HS Overview | Outlook: Positioned for CapEx Recovery
 Strong market fundamentals in petrochemicals in North America,
Russia and Middle East producing increased opportunities in
greenfield and brownfield projects
 Mid-term LNG supply / demand rebalancing indicates recovery in LNG

bidding and front end engineering
 Continued focus on brownfield expansion and maintenance services
 Growing services offerings globally allowing greater selectivity on EPC

projects
 Oil price stability signals possible inflection point
90
Brent Crude Prices Global LNG Supply / Demand
80
70
60
50
40
30
20
10
0 Target Gross Profit Margins including Equity In Earnings:
1/1/2016
3/1/2016
5/1/2016
7/1/2016
9/1/2016
11/1/2016
1/1/2017
3/1/2017
5/1/2017
7/1/2017
9/1/2017
11/1/2017
1/1/2018
3/1/2018
5/1/2018
Mid-to-High Single Digits %

HS Overview | Business Development Priorities
Global & regional account focus $69B Value

Total HS Pipeline as of April 2018
Cross selling between T&C, E&C and Industrial Services; $12B

capture government services expertise Pursuit
$5B
Capture
Prospect selectivity & bid scrutiny
$4.5B
Bid Preparation
Customer intimacy $9.3B

Bid Submitted
Good core customers, prospective new customers and a healthy pipeline

FINANCE STRATEGY, TARGETS AND CAPITAL ALLOCATION

Financial Overview | Financial Strategy
Grow Profits Strengthen Business Acumen Emphasize Financial Discipline
 Promote growth/scale  ‘Cash is King’ mindset 1 Invest in growth markets

 Lean back office/heavy BD  Maintain low cap intensity 1 Attractive regular dividend
 Evolve to higher margin work
 Cash flow-focused contracts 1 Maintain targeted leverage
 Commercial discipline &
selectivity in Hydrocarbons  Incentives & accountability
22 Synergistic, accretive M&A
3 Buybacks with excess cash
Near term Focus to De-Lever

Financial Overview | Long-Term Targets / Breakout Potential
2018 2019 thru 2021 2018 2019 thru 2021
5 – 10% 10 – 25+%
Revenue1 Growth Rate 3 – 5% Revenue1 Growth Rate 3 – 5%
CAGR CAGR
10 – 15% Net Income Growth 7 – 11%3 15 – 35%

Net Income Growth Rate2 7 – 11%3
CAGR Rate2 CAGR
Operating Cash Flow Operating Cash Flow

70 – 100% 90 – 110% 70 – 100% 90 – 110%
Conversion ratio4 Conversion ratio4
1. GAAP revenues 1. GAAP revenues

2. Legal legacy costs excluded 2. Legal legacy costs excluded
3. Growth over 2017 after adjusting for PEMEX gain in 2017 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 4. Conversion ratio defined by Operating Cash Flow divided by Net Income attributable to KBR

Financial Overview | Target Operating Cash Flow (OCF)
350
Annual
300
250
200 $100 – 200M / year growing to

In $M
150
$200 – 300M / year
100
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

Financial Overview | 2018 Earnings Guidance
Full Year
Guidance
Adjusted EPS $1.35 - $1.45

Excluding:
• Acquisition & Integration related expense $0.04
• Amortization related to Aspire acquisition $0.06
• Estimated legacy legal fees $0.07
• Aspire gain on consolidation ($0.67)
Effective Tax Rate 22% - 24%

Operating Cash Flow $125M - $175M

APPENDIX

APPENDIX | Reconciliations
($ in millions) FY 2017 Guidance FY 2018
Net Income Attributable To KBR $ 434 EPS (diluted) $1.85 - $1.95
Add Back: Add Back:

Interest Expense, Net $ 18
Legacy Legal Fees $ 0.07
Provision (Benefit) for Income Taxes ($193)
Acquisition & Integration Related Expenses $ 0.06
Other Non-Operating Expense (Income) $ 13
Amortization Related to Aspire Acquisition $ 0.06
Depreciation & Amortization $ 48
Aspire Gain on Consolidation ($0.67)
Consolidated EBITDA $ 320
Add Back: Adjusted EPS $1.35 - $1.45
Non-Strategic Business $1
Corporate $ 72
Business EBITDA $ 393

KBR IR Presentation 2018.06

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Investor

May / June 2018

2 Investor Presentation | KBR

A leading global provider of full life-cycle

3 Investor Presentation | KBR

proprietary technology focused on the monetization of hydrocarbons in ethylene and

4 Investor Presentation | KBR

Government Services Hydrocarbons

 Science & Space  Licensed technology portfolio

 Major programs  Major programs

 Logistics/Theater opening capability  Logistics

 Base Operations Support Services  Plant operations and reliability

5 Investor Presentation | KBR

Reduced to 3 segments focused on 2 end markets; exited all non-strategic

Pivoted to gas-facing hydrocarbons; established Brown & Root IS JV for recurring,

6 Investor Presentation | KBR

CONTRACT MIX REVENUE EBITDA (1)

7 Investor Presentation | KBR

 Step-change in backlog/future visibility

‒ 77% of earnings for 2018 secured in backlog

 Incremental backlog from SGT and Aspire of ~$9B

8 Investor Presentation | KBR

9 Investor Presentation | KBR

 Domain expertise  US Department of Defense  RTD&E US

 Large scale & complex  Australian Department of  OCO

10 Investor Presentation | KBR

12% 22% 15%

11 Investor Presentation | KBR

12 Investor Presentation | KBR

‒ Defense spending increase across multiple funding streams, including

‒ Emphasis on technology innovation and Space Based capabilities across

 U.K. and Australia governments committed to increase defense spending to

 Expansion opportunities for the U.K. and Australian MoD leveraging

US Defense vs. Non Defense Discretionary NASA Budget

13 Investor Presentation | KBR

Re-compete focus for the base business $72B Value

Cross-sell capabilities across geographies $8.6B

14 Investor Presentation | KBR

15 Investor Presentation | KBR

Expand Technology Portfolio Increase Scope Offerings Expand Geographically

 Isomerization  PEQ, catalysts and solvents growth markets (Russia,

 Mega Nitric Acid digitalization  Expand consulting presence

16 Investor Presentation | KBR

Refining Ammonia and Syngas Proprietary

17 Investor Presentation | KBR

 Increased demand for petrochemical technologies in

 Increasing demand for niche refining technologies with

 Strong demand for new & revamp projects in response

Target Gross Profit Margins:

18 Investor Presentation | KBR

19 Investor Presentation | KBR

the Hydrocarbons industry 13% 11%

through the Brown & Root brand

20 Investor Presentation | KBR

Revenue Distribution by Contract Size (1) Backlog by Contract Type

44% Lump Sum EPC

26% Project Delivery

Services, Maintenance and Reimbursable EPC

21 Investor Presentation | KBR

UPSTREAM LNG DOWNSTREAM INDUSTRIAL SERVICES

Fixed Platforms Liquefaction Refining Maintenance

22 Investor Presentation | KBR

 Mid-term LNG supply / demand rebalancing indicates recovery in LNG

 Continued focus on brownfield expansion and maintenance services