Capabilities Presentation 1

Risk Management

in the Government

Services Market

Byron Bright - December 2018

Capabilities Presentation 2

Life-cycle

ServicesEnduring

Customer Base

Attractive Domestic

and International MixIndustry-leading

Safety Record

Technical

DifferentiationDisciplined Project

Delivery

KBR | Did You Know?

Delivering clean energy

solutions through the

design and construction of

a third of the world’s LNG

production.

Serving the UK MoD

through a comprehensive

construction and facilities

management program that

extends through 2041.

Providing solutions and

proprietary technologies that

cater to growing demand for

cleaner fuels and consumer

products.

Leading service provider to

the space community,

supporting mission control,

astronaut life science,

research and operations.

34,000+

People40+ Countries

Capabilities Presentation 3

Driving Progress, Delivering Value

About KBR

▪ Founded in 1901 – Proud History built from legacy companies M.W. Kellogg & Brown & Root

▪ $5B approx. annual revenue

▪ 34,000 global employees

▪ Operations in over 40 countries

▪ Recognized for operational excellence and industry-leading safety record

KBR

KBRwyle

Capabilities Presentation 4

Providing Industry-Leading Solutions

Proprietary technology focused on the

monetization of hydrocarbons in ethylene

and petrochemicals; ammonia, nitric acid

and fertilizers; oil refining and gasification

Onshore oil and gas; LNG/GTL; oil

refining; petrochemicals; chemicals;

fertilizers; differentiated EPC; maintenance

services; offshore oil and gas floating

solutions; program management and

consulting services

HYDRCARBON SERVICES TECHNOLOGY

Serving government customers globally,

capabilities that cover the full lifecycle of

defense, space, aviation and other

government programs and missions

GOVERNMENT SERVICES

GS50%

Tech20%

HS30%

GS53%

Tech7%

HS40%

2017 Revenue

2017 EBITDA

Capabilities Presentation 5

GS Overview | Business Overview

68%

32%

*Includes KBR share of unconsolidated JVs

2018 Revenues

US

EMEA &

APAC

Est. $3.5 B

Expected

Revenues*

2018

▪ Global scale through over 45 domestic and 35 international locations

▪ Highly technical and professional services from Wyle, HTSI, and SGT

▪ Mission support and logistics from the KBR heritage and HTSI

▪ RTD&E

▪ Operations & Maintenance

▪ Overseas Contingency

▪ NASA

▪ Domain expertise

▪ Mission critical services

▪ Large scale & complex

environments

▪ Dedicated client delivery model

▪ US Army

▪ US Navy

▪ US Air Force

▪ NASA

▪ Other government entities

Critical Differentiators Diverse Customer Base Diverse Funding Streams

HIGH IMPACT, MISSION CRITICAL SERVICES

Capabilities Presentation 6

GS Overview | Capabilities and Customers

▪ Leading Systems Engineering and Integration (SE&I) provider to US Army Aviation

▪ 35+ years of engineering services to US Army Missile Defense and US Navy aviation platforms

▪ Largest independent flight test organization in the US

▪ 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

GLOBAL LOGISTICS &

MISSION SUPPORT

▪ 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

ENGINEERING

▪ UK Army – largest ever UK MoD PFI contract, contract through 2041, including Army 2020

▪ UK RAF groundbreaking complex, 18-year PFI (MFTS) – provision of 38 new training aircraft

▪ UK Army HET 23-year PFI contract including sponsored reserves, contract through 2024

Space & Mission Solutions

COMPLEX PFI

Army

NASA

Navy

Air Force

Other Defense & Civil

ClassifiedCommercial Aerospace

CustomerPortfolio

29%

27%

17%

9%

8%

4% 5%

U.S. Government Breakdown

Capabilities Presentation 7

Global Logistics & Mission Support

Capabilities Presentation 8

Base Operations & Life Support is like running small cities…

Capabilities Presentation 9

DIEGO GARCIA Atoll in the British Indian Ocean Territory2200+ Supported Population

Capabilities Presentation 10

CAMP LEMONNIER, DJIBOUTI, Africa

With Two forward operating basesAt Chabelley, Djibouti and Manda

Bay, Kenya5000+ Supported Population

Capabilities Presentation 11

Prepositioned Stock &Supply Chain Management

Capabilities Presentation 12

Systems Engineering

Capabilities Presentation 13

Experienced expertise across all major defense platforms

Outstanding employees• 3200 employees

• Scientists, engineers, technicians, program managers, aircrew

• 900 degreed engineers

• Near weekly citations for excellence by our customers

• Many recognized as experts and leaders in their fields

• Over 40% are Veterans

57%18%

10%

9%6%

Employee Tenure

0-5 Years 5-10 Years

10-15 Years 15-25 Years

25+ Years

56%16%

6%

22%

Security Clearances

Secret: Top Secret:

Top Secret SCI: Uncleared:

39%

25%2%

34%

Education

BA/BS Degrees Masters Degrees

PhD Degrees No Degrees

Capabilities Presentation 14

Key Customer Focus Areas

SPAWAR

Air Force Materiel

Command

Army Systems Commands

Military Space and Missile

Defense

Naval Aviation Enterprise

*Represents 80% of 2018 revenue plan

Capabilities Presentation 15

Space & Mission Solutions

Capabilities Presentation 16

Human Space Flight Exploration

KBRwyle supports all aspects of Human Space Flight:

1. Research & Development / Engineering Design

2. Plan, Train, Fly

3. Mission Control Operations & Support

4. Astronaut Health and Human Performance

5. Spacesuit Testing, Management, and Operations

Capabilities Presentation 17

Setting the Standard in Mission Development & Operation

KBRwyle’s Full Life-Cycle Involvement• Concept Definition to Disposal• Ground and Space System Development• Requirements, Development, Integration, and Test• Flight Operations and Mission Data Management• End of Mission planning; Passivation and Disposal operations

Over 700 Spacecraft Since 1958 inEvery Orbit, Application, and Configuration

Remote SensingSpace PhysicsDefenseEarth Science

Deep SpaceIntelligenceSmallsatsAstrophysicsCommunications

The Most Experience in the Aerospace Community

FUSE

SWAS

TRMM

SOHO

FAST

ACE

RXTE

SAMPEX

TIMATIONI & II

NTSI & II

LIPS

SLD/TLD

Clementine

TERRAAQUA

LANDSAT 7

Quickscat

EO-1 Int’l Space Station

TDRSS

HUBBLEWIND

MARS GLOBALSURVEYOR

CASSINI

STS

GOES

SDO

LRO

GPM

FERMI

OSIRIS-Rex

MMS

LANDSAT 8

AURA

And more…

CUBESAT

WFIRST

JWST

PACE

JPSS

Capabilities Presentation 18

Risk Management

Capabilities Presentation 19

Risk takes on many forms in KBR’s Government Support Missions

Capabilities Presentation 20

KBR Risk Management

KBR Enterprise Risk Management implemented from

strategic decision making thru project execution

Capabilities Presentation 21

KBR Risk Management Overview

Commercial Risk

Execution Risk

Financial Risk

Contractual Risk

Joint Ventures

Commercial Agents

External (Geopolitical, environmental)

Resources (Key Personnel, HVEC’s etc)

KB

R P

RO

JEC

T R

isk

Co

nsi

der

atio

ns Project Execution (Vendors, Subs etc)

Project Schedule & Cost

Bonds, Guarantees

Credit (Client, Partner, Subcontractor)

Currency, Taxes

Rely Upon & Acceptance of Work

Liabilities & Indemnities

Performance & WarrantiesKB

R E

NTE

RP

RIS

E R

isk

Co

nsi

der

atio

ns

Political Risk

Economic Risk

Sociological Risk

Technological Risk

Legal Risk

Environmental Risk

Mitigations

• Strategic Planning• Operational CONOPS• Resource Allocations• Partnering (share risk)• Pricing

• Contingency• Risk Premiums• Fee Levels

Capabilities Presentation 22

Unique Risk Considerations in Government Markets

Applying robust Risk Awareness Tools to manage a diversity of mission environments

• Employee Safety & Securityo Insider Threats

• U.S. Government Political & Budget Environmentso Mid-Term Electionso Changing Priorities between Defense & Civiliano Budget Caps

• Geopolitical Landscapeo Changing threats to “near-peer” countries

• Staffingo Highly skilled and/or Security Clearances

• Project Executiono Customer CPARS

• Contract / Change Management• Government Audit & Contract Closeout

Capabilities Presentation 23