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Investor

Presentation

September 2015

Stuart Bradie – President and Chief Executive Officer Brian Ferraioli – EVP and Chief Financial Officer Zac Nagle – VP, Finance - Investor Relations

Forward-Looking Statements

2

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.

KBR’s Zero Harm 24/7

0.39 0.37

0.35

0.39

0.30

0.22

0.26 0.23

0.21 0.19 0.18

0.34 0.35 0.35 0.32

0.31

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

2010 2011 2012 2013 2014 2015

KBR TRIR IOGP Top Q IOGP Average

5-Year TRIR Performance

3

Agenda

• Introduction

• Overview & Strategy

• Market Outlook

• Financial Results

• Q&A

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• KBR, Inc. is a global technology, engineering,

procurement and construction company serving the

hydrocarbons and government services industries.

• More than 100 year proud history.

• #424 in Fortune 500 rankings.

• 25,000 employees in more than 45 countries.

• Customers in more than 70 countries.

KBR Overview

5

Old KBR operating segment structure (16 business units)

New streamlined operating segment structure (5 business units)

Structure – Streamlined / Focused

6

KBR

Gas Monetization

Hydrocarbons Infrastructure, Government &

Power Services Operations

KBR

Technology & Consulting

Engineering &

Construction

Government

Services

KBR’s Business Groups


Proprietary Technologies

Upstream

• Semi-submersible hull

design

• Monohull vessels

Downstream

• Refining

• Olefins

• Ammonia

• Chemicals

• Coal Gasification

Consulting and Services

Upstream

• Field development

planning

• Project assurance

• Integrity management

• Structural analysis

Downstream

• Downstream consulting

• Feasibility and revamp

studies

• Technical services

• Automation consulting and

project management

Engineering & Construction

Offshore

Fixed Platforms

Floating Facilities

Hulls, Moorings & Risers

SURF

LNG / GTL

Liquefaction

Regasification

FLNG

FSRU

Onshore

Oil & Gas

Refining

Petrochemicals

Chemicals

Ammonia & Fertilizers

Gasification

Asset Services

Maintenance

Modifications

Small Capex Projects

Asset Integrity

Government Services

EMEA

Home Base Operational

Support

Overseas Operational Support

Programme Management

Services

Resilience Planning &

Execution

Training

APAC

Asset Management

Systems Engineering

Integrated Logistics Support

Capability Risk Management

Training

Americas

International Base Operations

Support

Remote Life Support Services

Logistics

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KBR Global Operations

Mexico City

Houston

Gothenburg

London

Moscow

Delhi

Dubai Pune

Jakarta

Tokyo

Seoul

Singapore

Beijing

Shanghai

Caracas

Perth Rio de Janeiro

Kuala Lumpur Monterrey

Wilmington

Birmingham

Edmonton

Luanda

Atyrau

Baku

Saudi Arabia

Bahrain

Chennai

Melbourne

Arlington

Canberra

Baghdad

Kabul

Freetown

Sydney

25,000 Employees in more than 45 Countries

Customers in more than 70 Countries 8

Leadership Team

Engineering & Construction John Derbyshire


37 Years of Industry

Experience

Engineering & Construction Andrew Pringle

Government Services


Experience (37 Years

Military Experience)

Graham Hill

Global Sales & Strategy


Experience

Roy Oelking

E&C Americas


Experience

Jan Egil Braendeland

E&C EMEA


Experience

Ivor Harrington

E&C APAC


Experience

David Zelinski

E&C Americas (Onshore)


Experience

Stuart Bradie

President and CEO

E&C Group President


Experience

Brian Ferraioli

CFO


Experience

Jay Ibrahim

E&C MENA


Experience

Farhan Mujib

Commercial


Experience

Eileen Akerson

Legal


Experience

Nick Anagnostou

HSSE


Experience

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Strategic Priorities

Priority Markets

Global Hydrocarbons (Gas) &

International Government

Services

Early project involvement

via differentiated technology

(gas monetization) &

specialized consultancy

services

Pursue Fixed Price EPC

when differentiated by: - KBR Technology

- Related experience

- Ability to self-perform

construction

(predominantly gas monetization)

Global project delivery focus

organized with regional

accountability

Re-focus

Growth

Strategy

1 2

3 4

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Framework to Support Core Focus

Exit non-strategic businesses:

- Stand-alone Fixed Price EPC Power

- Fixed Price U.S. Infrastructure &

U.S. Minerals

- Building Group

- Fixed Priced Stand-alone Construction

One KBR: Consistent use & application of

standard policies, processes, systems,

tools & procedures to deliver

consistency and efficiency

Allocate capital

in an efficient

and balanced

manner

Efficiencies: Be cost competitive;

$200 million reduction in annual

operating costs by 2016; > $125 million

in savings already identified / actioned

Streamline

Operations

1 2

3 4

Note: All statements current as of KBR’s 2Q15 earnings call on 08/04/2015

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Strategic Objective Progress to date

Exit non-strategic businesses Stand-Alone EPC Power The first of three power plants is now operational. The second will be completed in 1Q 2016. The third is targeted for 1Q 2017 completion. U.S. Minerals & U.S. Infrastructure Closed U.S. Minerals office Selling Infrastructure by year-end 2015 Building Group Sale closed 2Q 2015 realizing cash of $23 million and a gain of $28 million. Fixed Priced Stand Alone Construction Completed existing contracts and team is integrated into E&C Americas

Businesses under review Canadian Module Fabrication Business is pending transfer to announced JV with BCP

Cost reduction initiatives of $200 million by 2016 More than $125 million in savings identified to date

Resolve outstanding disputes Significant progress in closing legacy U.S. Military audits; efforts continue on remaining third party cases

Balanced capital allocation policy $17 million and $35 million in share repurchases and dividends paid, respectively, in 2015

Progress Report on Strategic Objectives

Note: All statements current as of KBR’s 2Q15 earnings call on 08/04/2015 12

Market Outlook: Technology & Consulting

Technology market opportunities led by ammonia, refining and olefins, particularly

revamps.

Opportunities in China and elsewhere for VCC (Veba Combi-Cracker) technology and

converting heavy Hydrocarbons into lighter fuels, esp. diesel.

Consulting opportunities in upstream E&P more challenging but onshore and offshore,

midstream (gas processing, transmission pipelines, terminals) and downstream (LNG,

refining, petrochemicals, fertilizers) opportunities continue to exist.

Looking for additional opportunities to expand T&C technology portfolio.


13

Market Outlook: Engineering & Construction

Q2 developments supporting strategic focus areas:

Statoil award for topsides for phase 1 of multi-staged development of Johan Sverdrup oil & gas field with long-

term follow on opportunities.

Moving to grow industrial services / maintenance business with Brown & Root Industrial Services joint venture.

Forming strategic alliance for pipe fabrication will support EPC in key Gulf Coast / North American markets.

Continued strong base of large projects in backlog through 2015 & 2016:

Executing two mega-LNG projects – Gorgon and Ichthys.

Existing LNG projects expected to remain significant components of earnings in 2015 & 2016; continue to see the

favorable resolution of pending change orders resulting in 2016 LNG income being comparable to 2015.

Significant backlog of ammonia / urea, refining and oil & gas projects.

Shipped final modules on Canadian pipe fabrication/module assembly contracts in July.


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Market Outlook: E&C (Continued)

Good pipeline of near-term and long-term prospects:

Increased focus on Middle East opportunities (refining and petrochemicals).

• Key hire – President, Middle East – J. Ibrahim.

Onshore upstream opportunities in Middle East & Caspian remain positive due to low cost to develop. JV with

National Oil Company of Azerbaijan (SOCAR) announced in 1Q15 also positions us well for offshore brownfield.

Key offshore developments continue in Middle East, North Sea, GoM and West Africa. Additional offshore project

opportunities for North Sea: Maersk Culzean, UK, additional phases of Johan Sverdrup, Norway North Sea;

Thailand, & Qatar.

Early work awarded (Offshore Oil & Gas) under the BG Global Alliance Agreement.

Approximately $2B ammonia / urea complex in the Midwest (confidential client).

Major LNG developments in process support backlog growth in 2016 and beyond:

• Continue to work on Shell Global LNG Agreement, with assignments underway.

• KBR/JGC/Rekayasa JV continue FEED and EPC bid opportunity for Tangguh Train 3. Award expected 2016.

• KBR/SK JV services work underway for Magnolia LNG sole-source 4 train (8mtpa) LNG facility; EPC pricing

by year end.

• Pre-FEEDs and FEED’s underway for projects in Canada and USA.

• Pre-FEED work and tendering ongoing for two major FLNG projects.


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Market Outlook: Government Services

Confirmed preferred bidder for U.K. MoD Fixed Wing Training (MFTS) contract – another

long-term annuity type project. Award expected this year.

U.K. Army re-basing – discussions continue on a sole source basis with decisions

expected by year-end.

Strong operational performance continues for U.K. PFI contracts – primarily MoD long-

term facilities maintenance.

• Backlog now ~$5.4 billion higher with all years of existing O&M contract in backlog.

A number of U.S. overseas base operations support opportunities in process; e.g.,

Kuwait.

Services in Iraq under LogCap IV contract grew in the period with further growth

possible. Significant progress in successfully closing U.S. Gov’t audits of legacy LogCap

III and RIO billings.


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Significantly improved earnings versus 2014 driven by strong operating performance.

Two mega LNG projects continue to perform well.

Won strategically important Johan Sverdrup contract from Statoil – topsides for stage 1 of multi-staged

development with longer-term opportunities for significant follow-on work.

Gov’t Services backlog now reflects value for full contract term vs. previous 5 year limit for U.K. PFI contracts

($5.4 billion increase).

Backlog from ongoing businesses relatively unchanged Q1 to Q2, excluding PFI adjustment.

Sold non-strategic Building Group subsidiary

Formed key strategic partnerships for industrial services, pipe fabrication to accelerate earnings growth:

• 50/50 JV via Brown and Root Industrial Services – will expand our customer base and geographic reach

for maintenance / small construction.

• Pipe fabrication alliance will provide access to facilities on strategic gulf coast.

• Both transactions are expected to close by year-end.

Maintained strong balance sheet and cash position providing flexibility in challenging market.

Q2 Financial Summary


Consolidated Results: Q2 2015 vs Q2 2014

Commentary

Backlog increase reflects GS long-term contract adjustment.

Revenues declined from completion or near completion of

Canadian pipe fabrication and N.A. construction projects and

reduced activity on an LNG project.

Gross profit and equity in earnings reflects improved

underlying business performance, reduced operational costs

and project charges in 2Q14 that did not reoccur in 2Q15.

G&A lower from cost reduction initiatives.

Restructuring charges and impairment of long-lived assets

also related to cost reduction initiatives.

Gain on sale of Building Group subsidiary - $28M.

Net Income reflects improved operational performance and

cost reduction initiatives.

Quarter Ending

($ in millions, except EPS) Jun 30, 2015 Jun 30, 2014

Bookings $ 1,087 $ 1,186

Backlog of Unfilled Orders $ 15,298 $ 12,491

Revenues $ 1,381 $ 1,659

Gross profit $ 74 $ 28

Equity in earnings $ 53 $ 49

General & administrative expenses ($42) ($60)

Asset impairment and restructuring charges ($17) $ 0

Gain on disposition of assets $ 28 $ 8

Provision for income taxes ($23) ($10)

Net income (loss) attributable to KBR $ 62 ($8)

EPS (diluted) $ 0.43 ($0.06)

EBITDA $ 95 $ 22


Segment Reporting: Q2 2015 vs Q2 2014 Revenue

T&C reflects mix shift to technology services and less proprietary

equipment and reduced upstream oil & gas consulting activity;

E&C reflects completion or near completion of Canadian pipe

fabrication and N.A. construction projects and reduced activity on

an LNG project.

Gross Profit and Equity in Earnings

T&C reflects earnings and margins from shift in mix of work

previously noted on olefins, syngas and refining projects and

reduced overhead.

E&C reflects improved underlying business performance / lower

overheads, a $15 million favorable correction of a cumulative error

for an unconsolidated offshore maintenance JV that occurred

throughout the period 2007 to 1Q 2015 and increased progress on

an ongoing LNG project. 2014 included $41 million in losses on

Canadian module assembly projects compared to profit in 2015 as

a result of negotiated settlements. All Canadian modules now

delivered.

GS reflects solid operational performance and reduced

overheads, offset by 2Q15 legacy-related legal fees of $5M. 2014

includes $15 million in reduced project costs and insurance

proceeds received in 2014 that did not reoccur.

Non-Strategic Business reflects solid operational performance,

lower overheads and charges taken on certain power projects in

2Q14 that did not reoccur and sale of Building Group subsidiary.

Quarter Ending ($ in millions) Jun 30, 2015 Jun 30, 2014

Revenues

Technology & Consulting 80 100

Engineering & Construction 953 1,213

Government Services 158 163

Non-Strategic Business 190 183

Consolidated Revenues 1,381 1,659

Gross profit (Loss) and equity in

earnings


Engineering & Construction 92 53


Non-Strategic Business 2 (19)

Consolidated Gross profit & equity in

earnings 127 77

EBITDA


Engineering & Construction 70 27


Non-Strategic Business 28 (17)

Other (34) (32)

Consolidated EBITDA 95 22


Cash / Capital Allocation

KBR Cash Balance Return of Cash to Shareholders

YTD 2015 Since Jan-07

Share Repurchases 17 748

Dividends 35 273

Total Returned to SHs 52 1,021

Q2 2015 Q1 2015

Domestic 289 181

International 381 499

JV 61 78

Total 731 758

Key Impacts to Cash in 2Q15

Settlement payment to former parent (12)

Dividends (11)

Pension (10)

Previously announced loss projects cash exp. (45)

Cash from sale of Building Group 23

Subtotal (55)

*

* One more payment of 12 remaining in 2015

$ in millions

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Financial Summary

Significantly improved earnings vs 2014 driven by strong operational performance.

KBR’s restructuring remains on track to deliver $200 million in annual cost savings by 2016

and gross profit and equity in earnings margin percentages:

• T&C – low 20s.

• E&C – upper single digits.

• GS – low teens range (excluding legacy U.S. Gov’t costs).

Continued success in strategically important areas – topsides for Johan Sverdrup; formed

two strategic alliances for industrial services and pipe fabrication, sold Building Group

subsidiary, Strong balance sheet and cash position, providing flexibility given challenging

market conditions.

Good bookings results with backlog relatively unchanged from Q1 for ongoing business.

Significant progress in closing legacy U.S. Military audits.

Expect two major LNG projects to contribute significantly to 2015 and 2016 earnings;

resolution of pending change orders could result in 2016 LNG income being comparable to

2015.

Post closing, shipped final Canadian modules and first of three power plants now

operational.


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Appendix

Consolidated EBITDA Reconciliation 2Q 2015

Note: EBITDA is defined as earnings before interest, income tax, depreciation and amortization

Quarter Ending

($ in millions) Jun 30, 2015 Jun 30, 2014

Net Income Attributable to KBR $62 ($8)

Add Back:

Interest Income (Expense) ($2) ($2)

Provision for Income Taxes ($23) ($10)

Depreciation & Amortization ($8) ($18)

Consolidated EBITDA $95 $22

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