KBRAnalyst Day

December 11th 2014

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/A, 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 GAAPfinancial measure has been provided in the Appendix to this presentation.

2

Forward Looking Statements

• Clear and consistent Health, Safety, Security and Environment (HSSE) messaging from Senior Management in town halls and videos

• Structured HSSE Campaign Strategy launched

• HSSE Global Branding Strategy developed, driving single point of focus

• Improvement in Total Recordable Incident Rate (TRIR):

– 18% improvement year-to-date since Q1– 38% improvement - Q3 versus Q1

3

Safety

0.32

0.39

0.24

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Q1 Q2 Q3

YTD

Actual By Quarter

0.36

0.34

2014 – KBR TRIR* Driving to Zero Harm

* Recordable Incidents per 200k man-hours

• KBR has a solid base business (“good bones”), but…

• Going forward, focus will be on differentiated offerings in core markets / clients with emphasis on global sales, commercial rigor and consistent delivery

• We will streamline operations and significantly reduce costs

• We will rebalance our current business portfolio

• We will continue our efforts to commercially resolve disputes –i.e. less litigation

• We will employ a balanced capital allocation policy

4

What You Will Hear Today

5

Strategic Priorities

Priority MarketsGlobal Hydrocarbons &

International Government Services

Early project involvementvia specialized

consultancy services(Granherne/GVA)

Pursue Fixed Price EPCwhen differentiated by:

- KBR Technology- Related experience- Ability to self-performconstruction

Differentiate offeringsvia proprietarytechnology and

equipment

Re-focusGrowthStrategy

1 2

34

6

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

Businesses still under review:- Considering options for U.S. military

support activities- Canadian Module Fabrication

Allocate capitalin an efficientand balanced

manner

Efficiencies:Be cost competitive;

$200 million reduction in annual operating costs by 2016

StreamlineOperations

1 2

34

Current operating segment structure (16 business units)

New streamlined operating segment structure (5 business units)

7

Structure – Streamlined / Focused

KBRKBR

Gas Monetization

Gas Monetization HydrocarbonsHydrocarbons

Infrastructure, Government &

Power

Infrastructure, Government &

PowerServicesServices OperationsOperations

KBR

Technology & Consulting

Technology & Consulting

Engineering &ConstructionEngineering &Construction

GovernmentServices

GovernmentServices

8

Strategic Overview

• Targeted Industries:– Hydrocarbons– Government– EPC Power– Fixed Price U.S. Infrastructure– U.S. Minerals– Building Group– Fixed Price Stand-Alone Construction

Old KBR New KBR

• Focus on Core Industries:– Hydrocarbons

– International Government

• 16 Business Units • 5 Business Units

• Structured in Silos • Synergistic Regional Organization

• Mixed Project Delivery Performance • Project Delivery Accountability, Discipline of Application and Increased Commercial Rigor

• FY 2013 Revenue: $7.2B • FY 2013 Revenue: $6.2B

• FY 2013 Gross Profit & Equity in Earnings Margin: 7.7%

• FY 2013 Gross Profit & Equity in Earnings Margin: 11.0%

9

Business Leaders Here Today

Brian Ferraioli Engineering & Construction Engineering & Construction

CFO

37 Years of IndustryExperience

Graham HillGlobal Sales & Strategy

37 Years of IndustryExperience

Jan Egil BraendelandE&C EMEA

22 Years of IndustryExperience

John DerbyshireTechnology & Consulting

37 Years of IndustryExperience

Farhan MujibCommercial

27 Years of IndustryExperience

Ivor HarringtonE&C APAC

30 Years of IndustryExperience

Andrew PringleGovernment Services

14 Years of IndustryExperience (37 Years Military Experience)

Roy OelkingE&C Americas

40 Years of IndustryExperience

David ZelinskiE&C Americas (Onshore)

30 Years of IndustryExperience

Stuart BradiePresident and CEOE&C Group President

27 Years of IndustryExperience

10

KBR Global Operations

Mexico City

Houston

Gothenburg

London

Moscow

Delhi

DubaiPune

Jakarta

Tokyo

Seoul

Singapore

Beijing

Shanghai

Caracas

PerthRio de Janeiro

Kuala LumpurMonterrey

Wilmington

Birmingham

Edmonton

Luanda

Johannesburg

Atyrau

Baku

Saudi Arabia

Bahrain

Chennai

Melbourne

Arlington

Canberra

BaghdadKabul

Freetown

Sydney

27,000 Employees in over 70 Countries

Global KBR Markets

Graham Hill

Oil MarketGlobal Oil Supply Economics

2015 – continued oil price volatility due to over-supply (U.S. Shale Oil and Libya), and higher dollar

Longer term support for higher oil prices

Short term decline in high cost production –oil sands, ultra deep water, some U.S. shale

Knock-on effect –decline in cash flow, leading to capital discipline – some reduction / delays –majors using $75-85/bbl

Source: Rystad Energy

Brent closing Fri 5th Dec

12

29

4349 53 54 55

62

74

57

13

Oil Market (Contd…)

Global Oil Supply & Demand

Oversupply to 2016, but demand growth requires new developments. Such developments are underway in 2015 for 2017-2018 production

Investment critical to meet growing demand and decline in existing fields –Capex forecast to decline marginally (3%/yr) for next 2 yrs

Low production cost major developments, shallow water, onshore production, subsea tiebacks, and brownfields expected to proceed. Plays to KBR “sweet spot”

Million bbl/d

Source: Rystad Energy

14

LNG MarketLNG Economics

LNG demand expected to grow 4.7%/yr – demand growth is centered in Asia, but Europe is expected to rebound

15% of announced capacity to be online by 2025 – means 110 million tpa additional capacity required

US, Canada and East Africa projects have better economics for Asia destinations

Growth Regions:o U.S. Gulf Coast Brownfield o Canada – due to new tax

ruleso East Africa due to successful

appraisals o Asia-Pacific expansions

Source: IHS, KBR Analysis

Asia

EUR

2015

2025

2015

2025

Brent Crude Pricefor LNG Indexing

$111/bbl

$77/bbl

15

Downstream: Oil RefiningRefined Products Demand

-

20

40

60

80

100

120

2000 2005 2010 2015 2020 2025 2030 2035 2040

Gasoline DieselJet/Kero NaphthaResidual Fuel Oil Other

Million bd

Source: IHS

Rapid consumption growth in non-OECD, mainly Asia and Middle East

Diesel is growing the fastest while gasoline is slowing. Fuel oil consumption declines

To meet demand, World needs annual additional of 800 kbpd

Advantage crude processing and fuel import reductions driving grassroots and expansions

Change in product mix – driving refinery complexity: high diesel vs. lower gasoline, residue upgrades, modernization and regulatory changes driving refinery conversions

Provides opportunities for KBR Technology

16

Downstream: Petrochem/ChemicalsEthylene Demand and Capacity

Source: IHS

Demand for plastics and advanced materials (PE, PP etc.) driven by GDP

Low cost feedstock / production driving petrochemical investments

Resource rich countries moving up the value chain

New capacity in areas with either feedstock advantages e.g. North America and Middle East or high demand growth e.g. China

In mature regions, producers are focusing on cost efficiency and feedstock flexibility

Ethane-based ethylene plants market share expected to increase beyond 40%, due to natural gas availability and cost advantages

Years

17

Downstream: FertilizersUrea Demand and Capacity

Source: Fertecon

Demand growth strong in developing world, largely driven by population growth

Capacity addition driven by either low feedstock costs or urea import reduction

Urea capacity growth ~3.2%/y (i.e. 4-5 new plants each year)

Production costs are driven mainly by feedstock costs – U.S. Gulf Coast and Middle Eastern projects have feedstock cost advantages

High production cost regions expected to focus on energy efficiency improvements (revamps) –provide opportunities for KBR Technology

Years

18

Market Summary: Impact on KBR

Key markets for KBR:

Upstream: oil & gas in GoM, North Sea, W. Africa, Brazil, Middle East, & Caspian

Midstream: LNG in U.S. Gulf Coast, Canada BC, East Africa, SE Asia

Downstream: mainly N. America and Middle East (others N. Africa, Latin America, CIS, & Asia)

KBR is well placed to capitalize in these growth markets (with technology, resources, track-record, geographical reach and key customers)

KBR has a balanced portfolio – Upstream, Midstream and Downstream, with more focus on natural gas and downstream, with a relatively low dependence on oil compared with peers

Technology&

Consulting

John Derbyshire

Technology and Consulting Business

20

Broad Range of Technologies and Solutions from Wellhead to Specialty Chemicals

ProprietaryTechnologies

Consultingand Services

UpstreamSemi-submersible hull design Monohull vessels

DownstreamRefining (VCC, ROSE, FCC, Hydroprocessing, Distillation)Olefins (SCORE, K-COT)Ammonia (KRES, KAAP, Purifier)Chemicals (Phenol, BPA, Acetic Acid, PVC, specialty technologies)Coal Gasification

UpstreamField development planning Project assuranceIntegrity managementStructural analysis

DownstreamDownstream consultingFeasibility and revamp studiesTechnical servicesAutomation consulting and project management

Business Model

21

Low Risk

• Smaller Project Size• Home Office Only Engineering• Multiple Markets/Geographies• Limited Liability

• License• Basic Engineering• Proprietary Equipment• Catalyst• Services

Superior Margins

Portfolio Offerings – Consulting

22

Upstream Consulting Field Development Planning• Technology Selection• Risk Management• Capital Spending Optimization

Offshore Integrity Management• Recurring Business• About 1,000 Production Platforms Globally

Petrochemical Complex• Feasibility Studies• Integration Planning

Refinery Planning• Configuration Studies• Efficiency, Capacity, Life Extension

Downstream Consulting

Portfolio Offerings – Upstream Technology

23

Semi-Submersible Design and Proprietary Technology• Proven Semi-Submersible Designs for 12,000

to 40,000 tons topside• Drilling, Production, and Accommodation Units

Monohull Vessel Design• Ultra-deep, Harsh Environments• Drill Ship and FPSO

Portfolio OfferingsDownstream & Syngas Technologies

24

Veba Combi Cracking (VCC™)• Convert Heavy Hydrocarbon Streams to Fuels• Produces On-Spec Fuels with 95%+ Once-Through

Conversion

KBR Catalytic Olefins Technology (K-COT™)• Highest Propylene-to-Ethylene Ratio• Flexibility to Process High- or Low-Quality Feedstocks

Fertilizer Technology• Global Market Leader in Ammonia Technology• Over 200 Plants Globally• Energy Efficient Technology

Transport Integrated Gasification (TRIG™)• Only Gasification Technology Designed to Process

High-Moisture, High-Ash Coals• Chemicals, Synthetic Natural Gas or Power

Applications

Recent Wins

25

QAFCO Revamp (2 units)Qatar Fertilizer Co.(Mesaied, Qatar)KBR KRES revamp: Increase capacity from 1150 to 1650 MTPD

Fertial Revamp (2 units)Fertial (Arzew & Annaba, Algeria)KBR KRES revamp: Increase capacity from 1000 to 1500 MTPD and energy reduction

UFN‐ 5Petrobras (Brazil)KBR Purifier: 1500 MTPD

Lotte‐Titan KCOTLotte Chemical Titan Sdn Bhd (Pasir Gudung, Johor, Malaysia)K‐COT: 127 KTA propylene and 93 KTA ethylene

KPIC Ethylene Revamp of Lummus PlantKorea Petrochemical Ind. Co., Ltd (Onsan, South Korea)SCORE: Increase capacity from 486 KTA to 800 KTA Ethylene

Kashima ROSE UnitJX Nippon Oil and Energy (Kashima, Japan)ROSE: 18,000 BPD

Dyno Nobel Ammonia PlantDyno Nobel Inc. (Waggaman, LA USA)Ammonia Plant: 2300 MTPD

Iowa Fertilizer Ammonia PlantIowa Fertilizer Co (Wever, IA USA)Ammonia Plant: 2200 MTPD

Maddog 2BP (Gulf of Mexico, USA)Semi‐Submersible Hull Design –Lazy  Wave Configuration

Ethylene ExpansionLyondellBasell (Channelview, TX USA)SCORE: Increase capacity by 250 MMlb/yr

Refinery FCC ModernizationPhillips 66 (various locations, USA)FCC: various capacities

HebronExxonMobil (Offshore Newfoundland, Canada)Advanced Analysis, Earthquake Eng., Structural Dynamics

Deepwater Tano/Cape Three PointsHess Ghana Exploration Ltd. (Ghana)FPSO Pre‐FEED

NSikoChevron (Offshore Nigeria)PreFEED 

Captain Enhanced Oil Recovery (EOR) Phase 2Chevron North Sea LimitedPre‐FEED Study

HereemaWorldwideSemi‐Heavy Lift Vessel

Statoil Cat DStatoil (North Sea)Joint Design of Semi‐Submersible Drilling Unit

Technology & Consulting Growth Strategy

26

• Continue to Broaden T&C Consulting Offerings through Acquisitions And Alliances

• Add Scope Extensions that Focus on Recurring Revenues

Acquisitions andScope Expansions

• Additional Sales Coverage in Growth Regions

• Localized Technical Support

• Localized Product Marketing

Extending Geographic Coverage

• Expansion of Existing HVEC Centers

• Expansion of Mechanical, Structural and Equipment Specialists

OrganizationalEffectiveness

Early Customer Engagement

27

Trusted Advisor Status

Early Project Involvement

Feasibility Studies

Field Development Planning

Revamp and Capacity Studies

Technology Selection

Consulting

Continuity for EPC

Business

Engineering&

Construction

Stuart BradieRoy Oelking

Farhan MujibIvor Harrington

Jan Egil BraendelandDavid Zelinski

E&C Group Organization

29

Stuart BradiePresident and CEOE&C Group President

27 Years of IndustryExperience

Jan Egil BraendelandE&C EMEA

22 Years of IndustryExperience

Ivor HarringtonE&C APAC

30 Years of IndustryExperience

Roy OelkingE&C Americas

40 Years of IndustryExperience

David ZelinskiE&C Americas (Onshore)

30 Years of IndustryExperience

E&C Core Sectors – Full Service Offering

30

OFFSHOREFixed Platforms

Floating FacilitiesHulls, Moorings & Risers

SURF

BP Thunderhorse

LNG / GTLLiquefaction

RegasificationFLNGFSRU

BP Tangguh

ONSHOREOil & GasRefining

PetrochemicalsChemicals

Ammonia & FertilizersGasification

Saudi Kayan

ASSET SERVICESMaintenanceModifications

Small Capex ProjectsAsset Integrity

Maintenance

GDF Suez Bonaparte

Total Pazflor EBIC Ammonia Plant

MMM

E&C Addresses a Broad Rangeof Industries / Types of Projects:

Project Delivery

Industry

Offshore

Onshore

LNG / GTL

Scope of Services

Engineering

EPC

Asset Services

Commercial

Reimbursable

Hybrid

Fixed Price

31

Project Delivery

What Does “Everyone Want”?

Consistency Predictability Certainty of Outcome

All Executed in a Safe Manner

32

Project Delivery

Common Fundamentals of ALL PROJECTS

Safety is theFirst Priority

Good Execution Plan

Integrated EPC Schedule

Experienced / Trained Project Management Team

Complete Front EndEngineering Design (FEED)

Accurate Estimatew / Appropriate Contingency

Risk Identification / Funding / Mitigation Plan

Corporate Capabilityto Execute

33

Project Delivery

People

ProcessesTools

CorporateCapabilityto Execute“KBR Way”

GOAL

On a consistent basis, every

time, throughout the

world

“We Deliver”

34

The Single Biggest Difference Going Forward?

ORGANIZATION STRUCTURE

• Global Project Support Organization • Capability Embedded in Business vs. Oversight • Streamlined Structure Drives Consistency • Management Discipline to Implement “KBR Way”• Increased Commercial Rigor from Bid Through Delivery

Project Delivery

35

36

KBR Portfolio – E&C Projects

Commercial & Risk Management

Consistency Predictability Certainty of Outcome

Right Deal

Balanced Risk ProfileSelf Perform or JVSound EstimateRealistic ScheduleAchievable Results

Execution

Right Leadership Change Management Cost & Schedule Control Productivity & Wage Risks Claim Management Vendor Performance Proactive Management

Outcome

ON Time

ON Budget

ON Spec

Zero Harm

Risk Management

37

KBR’s History in LNG

38

Strong Portfolio of LNG Experience

EPC Awards every 2-3 years

EPC

FEED

NWS Train 5Australia2003

Olokola LNGNigeria2006

Nigeria Trains 4, 5Nigeria2001

Malaysia Tiga Trains 7, 8 Malaysia2000

Nigeria Trains 4, 5Nigeria2002

Nigeria Train 6Nigeria2003

Peru LNGPeru2002

Angola LNGAngola

2005

Gorgon LNGAustralia

2005

Skikda New TrainSkikda, Algeria2006

Nigeria Train 7Nigeria2007

Arzew New TrainArzew, Algeria2006

Skikda New TrainSkikda, Algeria2007

Gorgon Trains 1, 2 & 3Australia2009

Ichthys LNGAustralia 2009

Pluto Trains 2, 3Australia2009

Yemen LNGYemen2005

Browse LNGAustralia2011

SEGAS LNGEgypt2000

2010

2005 2015

2000

Kitimat LNGCanada2011

Ichthys Trains 1 & 2Australia2012

Tangguh Trains 1, 2Indonesia2005

Pacific Northwest LNGCanada2013

We DeliverMozambiqueFLNG 2014

TangguhTrain 3 2014

Shell LNG Alliance

Nigeria Train 6Nigeria 2005

Gorgon LNG 3 Trains 15.6 mtpa LNG Barrow Island, Australia

LNG Loading Wharf

Project Execution in Progress

LNG Tank Farm

Delivery of LNG Train 2 Modules

39

Ichthys LNG 2 Trains 8.4 mtpa LNG Darwin, Australia

Blaydin Point SiteCentral Piperack Module Loadout

First Module Delivery Construction Workers’ Village

40

Major Sales Prospects

41

Pacific Northwest LNG Client: Petronas Scope: EPC Award: 2Q 2015

ConfidentialLNG Facility Scope: FEED & EPC

Price Award: 1Q 2015

Lake Charles LNG Client: BG Group Scope: EPC Award: 3Q 2015

Tangguh LNG Train 3 Client: BP Scope: FEED & EPC

Price Award: 1Q 2016

Tanzania LNG Client: BG Group/ Statoil/

ExxonMobil Scope: FEED/ EPC Award: 3Q 2015/ 1Q 2017

ConfidentialFLNG Scope: FEED Award: 2Q 2015

ConfidentialLNG Facility Expansion Scope: FEED Award: 1Q 2015

Mozambique LNG Client: Anadarko Scope: PMC Award: 1Q 2016

Mozambique FLNG Client: Eni Scope: FEED & EPC

Price Award: 4Q 2015

Break

Oil & Gas – Offshore Project Experience

43

Oil & Gas – Existing Major ProjectsBP Shah Deniz Phase II

ADMA OPCO NASR Phase II

Maersk Culzean

Chevron Big Foot

44

FPSO in Fabrication Yard

45

Statoil Johan Sverdrup EPC

BP Rumaila Offsites EPC

BP Mad Dog Phase II

Oil & Gas – Major Sales Prospects

Chevron UBON

46

Confidential ClientGlobal Strategic Alliance

47

Scope of work will span the venture stages and project types

Create Appraise Select Define Execute Operate

CapabilitySupport

Services

PMTs

VentureTypes

Surf Floater / FPSO Jacket / Topside

Pipeline / Offshore

Pipeline / Onshore

Onshore Processing

LNG (except for Services) Unconventionals Brownfield

1

2

3

Onshore – Rich Experience and Capability

48

Color KeyPetrochemicalsBiofuels SyngasRefiningOil & Gas

KBR Technology Project

Diversified Portfolioo Execute ~50 Projects per yearo Leverage KBR Technologyo Project Size = Thousands to Billions $o Global Footprinto Grassroots, Revamps & Continuing Services

2000 2005 2010 2015

WRB Refining Borger NGL

INEOS New Cracker Furnace

BP-Husky Toledo Reformer 3

UGCC Ethylene Cracker

Saudi Kayan Ethylene Project

Shell Pearl GTL Project

EBIC Ammonia Plant

Chevron Escravos GTL Plant

Sasol SuperFLEX

Sonaref Refinery FEEDEsso Chad Cameroon Project

BP/Sonatrach/Statoil In Amenas Gas Project

BP/Sonatrach In Salah Gas Plant

Saudi Aramco GES+ MSA

DuPont Blackhawk

Syncrude Canada Ltd. Upgrader

Lyondell NOx Reduction EPC Saudi Aramco Jazan Refinery

Saudi Aramco Shaybah NGL Program

Pequiven Moron Ammonia Project

BP Amoco Olefins Project

CNOOC Ammonia/Urea Plant

PetroSA Refinery

ExxonMobil Mogas EPC Project

DuPont MSA for EPCm

Equistar LDPE FEED

Major Projects Completed

Onshore – Existing Major Projects

49

o YASREF Grassroots Refinery• Client: Saudi Aramco / Sinopec• Scope: Pre-FEED, FEED, PMC

o SADARA Chemical Complex• Client: Dow / Saudi Aramco• Scope: Pre-FEED, FEED, PMC

o Channelview Ethylene Furnace Expansion• Client: Equistar Chemicals Lp• Scope: EPC & Tech. License

o Dyno Nobel Ammonia Plant• Client: Dyno Nobel Louisiana• Scope: EPC & Tech. License

o ENOC Refinery Expansion• Client: Emirates National Oil

Company• Scope: FEED

o SADAF Petrochemical Complex• Client: SABIC / Shell• Scope: Pre-FEED, FEED

o Omsk Refinery Revamp• Client: Gazpromneft• Scope: PMC

o Sonaref Grassroots Refinery• Client: Sonangol• Scope: FEED / CM

o INEOS Gemini HDPE Project• Client: INEOS Olefins &

Polymers• Scope: EPC

o Crude Oil Flexibility Project• Client: Lima Refining Co. • Scope: EPCm

o Toledo Feedstock Optimization / Post Treater• Client: BP-Husky Refining LLC• Scope: FEED

o Koch Enid Expansion• Client: Koch Nitrogen Co.• Scope: EPC Services

o Borger Ammonia Revamp / Grassroots Urea • Client: Agrium Wholesale• Scope: EPC

FEED / PMC / Eng. Services

Reimbursable EPC / Cm

Lump Sum EPC / Cm

Commercial Basis

Key Strategies:• Balanced Risk Profile• Differentiated EPC through Technology / Construction• Market Diversification across Industries and Geographies

o DuPont Master Services• Client: DuPont• Scope: Engineering / CM

Onshore – Major Prospects

50

Onshore Pipeline of Prospects• 70+ Prospects totaling > $6 Billion• 50+ Prospects to be Awarded in 2015• Spans industries covered with significant

opportunities in Petrochemicals & Ammonia/Syngas

• FEED and EPC

Major Prospects – 2015

20%

36%

20%

22%Petro -chemicals

Ammonia & Syngas

RefiningBiofuels 2%

Oil & Gas

Onshore – Reference Project

51

Burrup 2200 MTPD Ammonia Plant

Government Services

Andrew Pringle

Government - Principal Execution Offices / Key Clients

AmericasEMEA (UK) APAC

53

Bahrain Life Support

Government – Core Services

AMERICASInternational Base Operations Support

Remote Life Support ServicesLogistics

EMEAHome Base Operational SupportOverseas Operational Support

Programme Management ServicesResilience Planning & Execution

Training

APACAsset Management

Systems EngineeringIntegrated Logistics SupportCapability Risk Management

Training

Djibouti BOS

EmbassySecurity Upgrades

Heavy Equipment Transporter

Police Firearms Training

Met Police Facilities Management Integrator FCO Embassy Life Support

National Emergency Mortuary Arrangements Land 121

Landing Helicopter Dock Capability Support Contractor

Joint eHealth Data and Information

Amphibious and Afloat Support System

PMKeyS Technical Refresh Training and User Support

Project Allenby/Connaught

54

Government – Key Market Opportunities

EMEA

APAC

Americas

Ebola Treatment Centres Military Flying Training System Army 2020 Rebasing Communications Integrator Facilities Management Integrator

Deployable Health Capability HMAS Choules Catalyst Interactive TrainingRAAF Ground Support EquipmentMaritime Acquisition Branch

Kuwait Base Support AFCAP IV Djibouti Base Rebid Nevada Training Ranges Air Force Material Reserves

55

Financial Overview & Summary

Brian FerraioliStuart Bradie

57

Pro-forma Historical Financial Results Continuing Businesses

$ Millions

Technology & Consulting 296 331 285

Engineering & Construction 5,539 4,946 3,542

Government Services 1,095 928 522

Revenues 6,930 6,205 4,349

Technology & Consulting 80 27% 69 21% 48 17%

Engineering & Construction 589 11% 463 9% 257 7%

Government Services 145 13% 151 16% 79 15%

Gross Profit and Equity in earnings of unconsolidated affiliates 814 12% 683 11% 384 9%

EBITDA 619 401 229

- Excludes US Construction losses of $75M and $8M for 2012 and 2014 3Q YTD, respectively. - Excludes Canadian Fabrication losses of $132M and $80M for 2013 and 2014 3Q YTD, respectively.

2012 2013 2014 3Q YTD

• Goal: Reduce annual operating expenses by $200 Million by 2016

• Goal: By 2016, Gross Profit and Equity in Earnings

% by group:

– Technology & Consulting Low 20s %

– Engineering & Construction Upper single digits %

– Government Services Low teens % (excluding legacy LogCap issues)

58

Cost Reduction / Streamline Activities

Item Cash ImpactGoodwill / Intangibles Impairment 275$ - 325$ Non-Cash

ERP & Other Impairments 165 - 200 $35M Potential Future Cash, Balance Non-Cash

Foreign Tax Credits 180 - 200 Non-Cash

Allowance: U.S. Power Projects 100 - 125 Future Cash (3 Years)

Allowance: U.S. Government 50 - 100 Non-Cash

Restructuring 30 - 50 Cash

Total 800$ - 1,000$

Cash 30$ - 50$ Future Cash 135$ 160$ Non-Cash 635$ - 790$

$ Millions

59

Potential Pre-Tax Financial Impacts from Restructuring

Cash Balance ~ $1 billion / Bank Amendment Approved

60

Capital Allocation

Balanced Capital Allocation Strategy

Focus on core businesses

Continueto pay a

dividend with competitive

yield(currently 1.91%

vs. industry average of

0.76%)

Continuewith an

opportunisticshare

buybackprogram($265M

remainingunder current authorization)

Selective M&A (priority on

hydrocarbons focused

technologies)

• Pemex long-term receivable $401M

– In litigation until 2016

• U.S. Government long-term receivable $191M

– Ongoing discussions to create path to resolution

61

Major Commercial Disputes

Disputes: LogCap III Tort Cases:

• Burn Pits– Filed petition with U.S. Supreme

Court. Awaiting Solicitor General Brief and Supreme Court decision to accept the case. May impact two cases below.

• Electrocution– Pending Supreme Court decision

• Sodium Dichromate – Appealing jury trial award of

$81M. Additional cases pending in Texas.

Note: The above is a partial list of pending litigation. See Company’s Forms 10-Q and 10-K for additional details.

62

Summary• KBR has a solid base business

• Strategic focus will be on core markets and quality of earnings

• Clear objective and positive changes towards greater predictability of Project Delivery

• Will significantly reduce costs and streamline operations– Annual Operating Expenses reduced by $200 Million

– Achieve target Gross Profit and Equity in Earnings % by 2016

• Rebalance current business portfolio– Three core business segments structured on delivery lines and customer facing

– Exit non-strategic businesses

• Balanced capital allocation– Dividends

– Share buyback program

– Selective M&A (priority focused on hydrocarbons based technology)

Q&A

63

BP Atlantis EBIC Ammonia

Navajo Refinery ROSE Unit SEGAS

Appendix

65

Pro-forma Historical Financial ResultsNon-Strategic Businesses to Exit

Note: Non-Strategic Businesses to Exit include:• Stand-alone Fixed Price EPC Power• Fixed Price U.S. Infrastructure & U.S. Minerals• Building Group

$ Millions

Revenues 840 1,009 600

Gross Profit and Equity in earnings of unconsolidated affiliates (70) -8% 3 0% (81) -14%

2012 2013 2014 3Q YTD

$ Millions

Gross Profit + Equity in Earnings (Continuing Businesses) 814 683 384

General and administrative expenses (222) (248) (178)

Other Income 33 2 8

Depreciation & Amortization 56 61 51

Net income attributable to noncontrolling interests (58) (96) (54)

Other non-operating income (expenses) (4) (1) 18

Consolidated EBITDA (Continuing Businesses) 619 401 229

$ Millions

Gross Profit + Equity in Earnings (Continuing Businesses) 814 683 384

Gross Profit + Equity in Earnings (Non-Strategic Businesses to Exit) (70) 3 (81)

US Construction and Canadian Fabrication Losses (75) (132) (88)

Gross Profit + Equity in Earnings (KBR as Reported) 669 554 215

2012 2013 2014 3Q YTD

2012 2013 2014 3Q YTD

Pro-forma EBITDA Reconciliation – Continuing Businesses:

66

Reconciliations

Reported Gross Profit + Equity in Earnings Reconciliation: