Sustainable Technology Solutions
PRIMER
March 12, 2024
Sustainable
Technology Solutions
PRIMER
Jamie DuBray
VP Investor Relations
2
Forward-Looking Statement
This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance, backlog information, future demand expectations and other information that is not historical. When used in this presentation, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" or future or conditional verbs such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that are difficult to predict, and which could cause actual results to differ materially from the forward-looking statements contained in this presentation. Our most recently filed Annual Report on Form 10-K, any subsequent Form10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that the company has identified that may affect its business, results of operations and financial condition.
We caution you not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof. We disclaim any intent or obligation, except as required by law, to revise or update publicly any forward-looking statements for any reason.
This presentation includes certain non-GAAP financial measures. Because not all companies calculate non-GAAP financial measures identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, such non-GAAP financial information should not be considered superior to, as a substitute for or as an alternative to the historical financial information of the company, if any, prepared in accordance with GAAP. Please refer to our fourth quarter and full year 2023 earnings release and investor presentation posted on kbr.com for definitions and a reconciliation of Adj. EBITDA to the nearest GAAP measure.
The company does not provide reconciliations of Adj. EBITDA, Free Cash Flow and Free Cash Conversion to the most comparable GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, and acquisition-related expenses without unreasonable effort, which could be material to the company's results computed in accordance with GAAP.
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Sustainable
Technology Solutions
PRIMER
Stuart Bradie
President & Chief Executive Officer
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Unique, investible, IP- based enabler of energy trilemma
Highly trusted global capability with significant installed base and track record of delivery
Underpinned by mega-investment needed to meet growing cleaner energy demand
5
Sustainable Technology Solutions Primer Video
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What We Do
Project Management | Complex Program |
Consultancy (PMC) | Development |
Design & Engineering Solutions
Sustainable
Solutions
Machine Learning (ML)
Enhanced Schedule
Optimizations
Strategic Planning | Proprietary | Procurement and Construction |
and Advisory | Equipment (PEQ) | Management (PCm) |
Proprietary | and Catalyst | Technology Led |
Technology | Industrial | |
Licensing | Solutions (TLIS) |
Concept and
Feasibility
Studies
Sustainable
Technologies
Efficiency
Improvement
and Emission
Reductions
Technology | |
Expertise | |
Extensive | Differentiated |
Patent | Datasets & |
Portfolio | Libraries |
Scalable Datacentric
Systems
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Lifecyle
EBITDA Contribution
Customer 75-80%
Capex
Customer 20-25%
Opex
Phase 1 | Phase 2 | Phase 3 | Phase 4 | |
(<1 year) | (~1 Year) | (~2-5 Years) | (Ongoing/Perpetual) | |
Strategic Planning | Technology and FEED | Execution | Operation | |
and Feasibility Studies | Engineering | • | Proprietary Equipment (PEQ) | • Technology Led Industrial Solutions |
• Concept and Feasibility Studies | • Proprietary Technology Licensing | and Catalyst | (TLIS) | |
• Project Management Consultancy (PMC) | • Efficiency Improvement and Emission | |||
• Strategic Planning and Advisory | • Design & Engineering Solutions | |||
• | Complex Program Development | Reductions | ||
• Machine Learning (ML) Enhanced | ||||
Schedule Optimizations | ||||
• | Procurement and Construction | |||
Management (PCm) |
STS provides solutions across the full asset lifecycle from end-to-end.
Our support starts from ideation and continues all the way through plant startup and beyond.
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STS at a Glance
Enduring growth outlook as
STS is enabler of Energy Trilemma
80+
Protected technologies
- Expanding, sustainability- centered IP portfolio
- Broad and differentiated; sustained, protected advantage
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Countries of operations
- Global installed base across diverse product lines
- Global IP and differentiated service delivery platform
Decades
Average client tenures
- Loyal, long-term, well- funded blue-chip clients
- NOCs, IECs, industrials, developers, early adopters
20%+
2023 Adj. EBITDA1 %
- High margin, high cash flow, growth vehicle
- Strong visibility and resiliency; solutions across multiple verticals and cycles
1 Refer to fourth quarter FY 2023 earnings presentation for reconciliation of non-GAAP financial measure.
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Key Financial Highlights
KEY HIGHLIGHTS
$336M 20%+ 20-25%
2023 Adj. EBITDA12023 Adj. EBITDA1 Margin2022A - 2025E Adj. EBITDA2 CAGR
$5Bn | ~100% | ~65% | |||||||
2023 Backlog | Free Cash Conversion2,3 | Profit from Repeat Customers | |||||||
DIVERSIFIED MIX | |||||||||
EBITDA By PSL | EBITDA By Contract Mix | ||||||||
5% | |||||||||
45% | |||||||||
52% | Sustainable | Time & Materials | |||||||
Solutions | |||||||||
Unit Price | |||||||||
Sustainable | Fixed Price | ||||||||
48% | Technologies | 50% | |||||||
- Refer to fourth quarter FY 2023 earnings presentation for reconciliation of non-GAAP financial measure.
- Refer to slide 3 regarding forward looking non-GAAP financial measure.
3 Free cash conversion computed as Free cash flow / Pretax income attributable to STS.
- Double-digitEBITDA growth
- Scalable with high margin IP
- Low capital intensity; high free cash conversion
- Strong geographic diversification
- Multi-productline diversification
- Cycle-resistantwith capex and opex funding streams
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Disclaimer
KBR Inc. published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 14:35:02 UTC.