New Corporate OrganizationOctober 2010

Presentation To

2Privileged & Confidential

Matthew NissenBIOGRAPHY

»Matthew NissenSr. Manager Business Development

KBR Power and Industrial Group

»Matthew has over 30 years of

experience in Engineering and

Construction industry, having held

positions in project and construction

management. Nissen holds a

bachelor of Building Construction

from University of Florida.

3Privileged & Confidential

KBR History

1900Kellogg is founded by Morris W. Kellogg as a small pipe fabrication company

1919Brown & Root is founded as a road construction company in Houston, Texas by George and Herman Brown along with their brother-in-law Dan Root

1947Brown & Roots builds the world‟s first offshore platform 43 miles south of Morgan City, Louisiana, beyond the sight of land

1956Kellogg builds the firstCrude oil-based liquid Ethylene cracking facilityIn Europe.

1977Kellogg constructs Skikda LNGIn Algeria, its first LNGliquefaction plant.

1965Brown & Root builds the first offshore platform in the North Sea for Conoco, which would later become a major offshore hub.

1997KBR wins LOGCAP contract to support the U.S. military with base camps and other life support services.

1997Brown & Roots starts construction of the automated People Mover system, which connects terminals at Houston‟s Bush Intercontinental Airport.

1998M.W. Kellogg Company merges with Brown & Root to form Kellogg Brown & Root (KBR).

2004KBR draws upon its extensive experience designing CO2

compression systems to help build the world‟s first full-scale CO2 capture project in Algeria.

2005KBR begins Pearl GTL in Qatar, its first GTL project and what will be the largest GTL plant in the world.

2006KBR proceeds with separation from Halliburton and an Initial Public Offering of KBR shares receives positive public reception.

2008Acquisition of BE&K

2008Acquisition of Wabi

2000The Astros‟ Minute Maid Park, which features a unique retractable roof, is completed in a record 27 months under the direction of KBR.

4Privileged & Confidential

KBR Business Overview

»FY 2009 Revenue: $12.1 Billion

»Backlog as of 2Q2010: $12.4 Billion

»No long term debt

»$1.2 Billion Cash and Equivalents (2Q2010)

»Ranked No. 3 - ENR Top 400 Contractors

»Headquarters in Houston, Texas

»100+ years of operating history,

»~57,000 employees (~5,000 engineers) in over 45

countries

»Publicly traded on the NYSE (KBR)

5Privileged & Confidential

Safety - Commitment

Chairman’s Safety Award

Achieved 1,000,000 hours without

a lost time incident on 29 Projects

(Achieved on 5 Sites)

North American Safety Statistics 1,000,000 Hour Club

Accomplishments Voluntary Protection Program

» EMR = 0.41

» Recordable Incidents = 0.65

» Lost Time Incidents = 0.10

(7 Times)13 ContractorSafety Awards

Excellence in Safety AwardExcellence in Safety Award

UPDATE: Our Richmond County project has just

passed 1MM hours without a lost time or recordable

for a new total of 30 projects!

6Privileged & Confidential

New KBR Organization

CEOBill Utt

OPERATIONSDennis Calton

SERVICESDavid Zimmerman

VENTURESMark Barry

HYDROCARBONSJohn Rose

NON-HYDROCARBONSMark Williams

• Downstream

• Gas Monetization

• Oil & Gas

• Technology

• Power & IndustrialJim Stewart, President

• N.A. Government & Defense

• Intl. Government & Defense

• Infrastructure & Minerals

COMMERCIAL

& STRATEGY

ADMINISTRATION

CFO

LEGAL

7Privileged & Confidential

SHARED SERVICES

A&F, Legal, Human Resources

D. Joehl, N. Bouler, C. Hicks

New Organization

Power & Industrial

Business Unit President

Jim Stewart

SalesPower

Lance Hendrix

Industrial

Stuart Stoves

Group President

Power & Industrial Business Unit

OperationsEngineering

Project Oversight & Controls

Purchasing & Material Mgmt.Paul Turner

Construction Execution

Kenny Smith (B’ham)

8Privileged & Confidential

KBR Power

VP & Gen. Mgr

Lance Hendrix

VP, Operations

TBD

Mgr of Projects

Steve Johnson

Mgr of Projects

Tony Calderone

Construction

Kenny Smith

Engineering

Bill Nelson

Startup

TBD

Safety

Larry Webb

Procurement

Ross Cates

Project Controls

& Estimating

Dave Trent

Human

Resources

Clay Hicks

Legal

Nick Bouler

Services

Shared Services

9Privileged & Confidential

Power Project Map

Southern Company

Scherer Baghouses

Scherer Limestone

Macon, GA

Progress Energy

Richmond County Combined Cycle

Rockingham, NC

Progress Energy

Weatherspoon Biomass

Lumberton, NC

Palm Beach County SWA

Waste to Energy Retrofit

Palm Beach Gardens, FLADA ES

Activated Carbon Facility

Red River, LALCRA

Fayette Scrubbers

LaGrange, TX

UNITED KINGDOM

LEGEND

Current Projects

Completed Projects

Estimates in Progress

National Grid

Barrow Wind Farm

Scottish & Southern PMC

Entergy

CalpineSouthernPower

TallahasseeRepowering

OglethorpeDynegyJEA

SouthernCompany

Dynegy

FP&L

CPS Energy ProgressEnergy

Confidential

Confidential

10Privileged & Confidential

Total Domestic Power Market Addressable Domestic Power Market

$46.5$45.0

$37.1

$31.7

$44.0

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

2008 2009 2010 2011 2012

US

$ b

illi

on

s

$4.84$4.26

$13.22

$11.03

$5.30

$-

$2

$4

$6

$8

$10

$12

$14

2008 2009 2010 2011 2012

US

$ b

illi

on

s Status Quo

Impact of new Strategies

KBR Power

1. Increase Current Domestic Market Share in Gas

and AQCS

– Increase Business Development Coverage

– Add Power Operations Personnel to Support Growth

– WorleyParsons Engineering Alliance

2. Penetrate International Power Market via KBR Footprint

– Initial focus on United Kingdom, Australia, & South Africa

Strategy

3. Position for “Emerging” Power Generating Technologies

• Renewables (immediate focus on biomass)

• Transmission (emerging EPC market)

• Nuclear (may be some opportunities with GE)

• Carbon (KBR, OEMs technology)

Premise: The Power Market Wants Another Large Power EPC Contractor

11Privileged & Confidential

Domestic Expansion

Washington

Oregon

California

Nevada

Idaho

Montana

Wyoming

Utah

Colorado

Kansas

Oklahoma

Missouri

Arkansas

Louisiana

Mississippi

Alabama Georgia

Florida

Tennessee

Kentucky

Virginia

MDDE

West

Virginia

North

Carolina

South

Carolina

Texas

New

Mexico

Arizona

Nebraska

Iowa

South

Dakota

North

DakotaMinnesota

Wisconsin

Michigan

IllinoisIndiana

Ohio

PennsylvaniaNJ

New York

Maine

Massachusetts

CT

VT NH

RI

Canada

Southeast

Gulf Coast

Middle Atlantic

West

Midwest

Canada

Northeast

Predominately Union Construction

12Privileged & Confidential

International Targets

UnitedKingdom

SouthAfrica Australia

13Privileged & Confidential

KBR Power Services

»Engineering

– Major Design Engineering

Outsourced Projects

– Options Analysis, FEL Studies

– Seconded Engineers/Designers

(AllStates)

»Construction

– Large packages or GC projects

– Small Construction packages

(SW&B)

– Boiler Outages

– Full Outsourced Maintenance

14Privileged & Confidential

Birmingham Engineering

VP/General ManagerPaul Turner

VP/Chief EngineerKen Collier

Engineering

Managers

Project ControlsDanny ScottCivil/Struct/Arch

Danny Armstrong

Mechanical ServicesDavid Templin

Power & ControlsBill Reitzammer

Chemical ProcessJohn Winters

Scheduling

Cost

Document Ctrl

Secretaries

Industrial ProcessBarry Seidel

Drew Ricketts

Bryan Reed

Power Staff

15Privileged & Confidential

Monterrey

1,297 Employees

Engineering Centers

Perth

308 Employees

Houston

3,193 Employees

Leatherhead

3,051 Employees

Jakarta

268 Employees

Birmingham

575 Employees

Raleigh

112 Employees

16Privileged & Confidential

Birmingham Engineering

»KBR Birmingham

– Build Power engineering resume

(the future of the Birmingham office)

– KBR provides „turn the crank‟ detail design

– Can provide:

»Lower costs (multiplier, W2 Wage Rate, Travel, etc.)

»Lower travel costs

»Competent detail design engineering

»EPC based engineering (detail for construction, constructability, etc.)

»EPC based engineering controls (scheduling, document control,

EVMS, etc.)

»BE&K Management Commitment

17Privileged & Confidential

Construction Capabilities

Large ConstructionProjects

Small ConstructionProjects

Boiler Outages Maintenance

Summary

19Privileged & Confidential

Summary

»We view the new Power & Industrial Group as a reaffirmation of the

basic purchase of BE&K

– Rebuild the historic Brown & Root domestic construction business

– Leverage BE&K capabilities and experience, with KBR financial and large

project acumen, to „enter‟ the Power market as an EPC Contractor

– BE&K name will gradually go away

»KBR Executive Management feels that Domestic Power is a major

KBR growth engine

»The Power & Industrial Group business will be headquartered in

Birmingham

»We are committed to adding Power personnel to enhance our

capabilities