Credit Suisse 2012 Engineering and Construction Conference

June 7, 2012Bill Utt - Chairman, President and CEOSue Carter - Executive Vice President and CFO

Forward Looking Statements

This presentation contains “forward-looking statements.” All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include statements about the benefits of the split-off, the discussions of KBR’s business strategies and KBR’s expectations concerning future operations, profitability, liquidity and capital resources. You can generally identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,”“objective,” “plan,” “potential,” “predict,” “projection,” “should” or other similar words. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from those in the future that are implied by these forward-looking statements. Many of these factors cannot be controlled or predicted. These risks and other factors include those described under “Risk Factors” in KBR’s Annual Report on Form 10-K dated February 22, 2012, Forms 10-Q, recent Current Reports on Forms 8-K, and other Securities and Exchange Commission filings. Those factors, among others, could cause KBR’s actual results and performance to differ materially from the results and performance projected in, or implied by, the forward-looking statements. As you read and consider this presentation, you should carefully understand that the forward-looking statements are not guarantees of performance or results. KBR cautions you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, KBR cannot assure you that actual results will not differ materially from those expressed or implied by forward-looking statements.

The forward-looking statements included in this presentation are made only as of the date of this document. New risks and uncertainties arise from time to time, and KBR cannot predict those events or their impact. KBR assumes no obligation to update any forward-looking statements after the date of this presentation as a result of new information, future events or developments, except as required by the federal securities laws.

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KBR – A Leading Global E&C Provider

Revenue: Full Year 2011 - $9.3 Billion

Backlog: March 31, 2012 - $15.8 Billion

Headquarters in Houston, Texas

~27,000 employees; 70+ countries

KBR is a global engineering, construction, and services company supporting the energy, hydrocarbons, government services, minerals, civil infrastructure, power, industrial, and commercial markets.

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KBR’s Global Footprint

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Edmonton

Calgary

WilmingtonArlington

RaleighCharlotte

AtlantaHouston

Birmingham

MMM

Rio De Janeiro

Monterrey

Buenos Aires

GothenburgGreenford

Leatherhead Frankfurt

Algiers

MoscowAtyrau

BakuBaghdad

Kuwait City

DubaiAbu Dhabi

Dhahran

Lagos

Luanda

Johannesburg

New Delhi

Beijing

SingaporeJakarta

PerthAdelaide

MelbourneCanberra

SydneyBrisbane

Ontario

ChicagoSalt Lake City

DohaDammam

KBR’s Three Business Groups

LNGFLNGGTL

Gas Monetization

OffshoreOnshorePipelines

Oil & Gas

RefiningPetrochemicalsBiofuelsFertilizers

Downstream

RefiningPetrochemicalsSyngasCoal Gasification

Technology

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Infrastructure, Government & Power Services

InfrastructureTransportationWaterFacilities

N.A. Government & Logistics (NAGL)U.S. Federal GovernmentDepartment of Defense

International Government, Defence & Support Services (IGDSS)

U.K. Ministry of DefenceMiddle EastAsia Pacific (APAC)

Power & IndustrialPowerPulp & PaperAlternate Energy

MineralsCoal, Iron OreBase MetalsMaterial Handling

ConstructionRefiningChemicalsOil & GasPower

Industrial ServicesRefining & ChemicalsOil & GasPower Pulp and Paper

Canada OperationsOil SandsMining Gas Treating

Building GroupLife Sciences and EducationGovernment BuildingsHealthcareGeneral Industrial & AerospaceFood & Beverage

Hydrocarbons

Global Industry Drivers

mmcf/d

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1995 2000 2005 2010 2015 2020 2025

North America South America EU / EurasiaMiddle East Africa Asia Pacific

World Gas Demand by Region

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Source: PFC Energy

Global Industry Drivers

Global Oil Demand: Two Paths

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Source: PFC Energy

mmb/d

0

10

20

30

40

50

60

70

80

90

100

OECD

Non - OECD

2000

2006

2007

2008

2010

2012

2001

2002

2003

2004

2005

2009

2011

2013

Global Industry Drivers

0%

2%

4%

6%

8%

10%

12%

Germany

ChinaIndia

World

US

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Real GDP Growth % changefrom prior year

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Source: PFC Energy

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Australia

LNG Remains RobustGorgon Trains 1-3 EPCMIchthys LNG EPCGorgon Train 4 Pre-FEED with expected FEED transitionBrowse EPC bidding phasePluto Expansion Trains

Industry-Wide Cost and Labor Challenges in Australia

Mining Resources AbundantKBR’s global Minerals Business Unit headquarters located in AustraliaRio Tinto’s Hope Downs 4 EPCM

PerthAdelaide

MelbourneCanberra

Sydney

Brisbane

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China, India and Japan

KBR’s Technology Business Unit Continues Making Strong Inroads

Doubled headcount in Beijing, China office during 2011Doubled headcount in Delhi, India office during 2011

Strong Suite of TechnologiesAdvanced Catalytic Olefins (ACO™)Veba Combi-Cracker (VCC)Transport Gasifier (TRIG™)Selective Cracking Optimum Recovery (SCORE™)Ammonia Technology (Purifier™)

New Delhi

Beijing

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Middle East

Seeing Significantly Stronger Downstream and Infrastructure Activity Compared to Last Two Years

KBR-AMCDE joint ventureSadara Petrochemical Complex PMCYanbu Export Refinery PMCJazan Refinery FEED and PMSDoha Expressway PMS and engineering support

Iraq

Decline in LogCAP as work transitions from military focus to Department of StateAnticipate establishing hydrocarbons related Baghdad office in 2012

DubaiAbu Dhabi

DhahranDoha

Dammam

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Africa

LNG

Skikda LNG EPCMozambique LNG FEED tenderingEast Africa could provide lower cost options for LNG development

Seeing a Reawakening with Customers Discussing Large Projects

Refining

Lobito Refinery

Algiers

Lagos

Luanda

Johannesburg

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Europe / Former Soviet Union

United Kingdom

Leatherhead officeGreenford officeAllenby & Connaught project

Caspian

Kashagan projectShah Deniz projectChirag Oil project

GothenburgGreenford

Leatherhead

Frankfurt

Moscow

Atyrau

Baku

Russia

Sales officeVeba Combi-Cracker (VCC)International Paper maintenance and small capital construction projects

PolandInternational Paper maintenance and small capital construction projects

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South America

Strong Technology Presence for KBR

Successful Completion of 8 FPSO Hull Designs for Petrobras in 2011

Establishing Regional Office in Rio De Janeiro for Industrial and Engineering Offerings

Rio De Janeiro

Buenos Aires

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Canada

Stronger Levels of Investment and Seeing Projects Moving More Quickly; KBR Had Approximately $2 Billion in Tenders Outstanding at End of April, 2012, including:

TurnaroundsModule fabricationConstruction projects in Alberta Oil SandsGas processing projects in Western CanadaClient camp support

LNG

Kitimat LNG open book tendering processTwo additional LNG prospects in Western Canada

KBR Positioning for Stronger Mining MarketEdmonton

CalgaryOntario

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United States

Wilmington

AtlantaHouston

Birmingham

Chicago

Salt Lake City CharlotteRaleigh

Favorable Natural Gas Forward Price Curves Providing Opportunities in Downstream and Technology Businesses

New ethylene and ammonia facilitiesAnticipate significantly higher levels of capital investment in coming years

Low Priced Natural Gas And Air Quality Regulations Driving Power-Related Opportunities

Compelling value proposition for new gas-fired, combined cycle power plantsConstruction of pollution control facilities

Maintenance Business

Increase in Export LNG and GTL Opportunities

KBR currently bidding FEED for LNG project Gulf Coast areaAnticipate pursuing one or more FEEDs for GTL projects

U.S. Construction and Industrial Services Businesses

Strong bookings in 2011, but 2012 started out slower than expectedLow natural gas prices providing opportunities in gas processing

KBR Building GroupStrong multi-family residential and manufacturing constructionHealthcare and higher education spending remains slow

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KBR Financials and Backlog

Full year 2012 earnings per dilute share guidance in $2.45 to $2.80 range:

Full year G&A expense between $240 million and $250 million of which an estimated $20 million to $25 million is related to ERP

Full year CAPEX of approximately $100 million of which an estimated $60 million to $65 million related to ERP

Estimated overall effective tax rate in mid 20% (as of April 26, 2012)

Share count of approximately 148 million shares outstanding

Full year LogCAP revenue between $300 million and $500 million

KBR 2012 Guidance*

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*Note: All comments based on original 2012 guidance provided on December 20, 2012; unless otherwise noted

Cash Generation and Deployment

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$497M$1.2B

$413M

$265M

12/31/09 12/31/11

Acquisitions & Licensing

Arrangements

Share Repurchases & Dividends

$941M

2010 and 2011

Operating Cash

Generation

CAPEX; Other

Investing & Financing Activities

$966M

Future

Cash Deployment OptionsCapital ExpendituresAcquisitionsShare repurchasesDividends

Backlog

20

80

90

100

110

120

130

140

150

160

170

180

190

200

210

220

2006 2007 2008 2009 2010 2011 3/31/2012

Perf

orm

ance

Inde

x

Revenue Backlog Job Income Backlog

Continued focus on job income backlog:

Up 40% from December 31, 2011

Up 113% since December 31, 2006

Tax

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Effective Tax Rate Effective Tax Rate Excluding Discrete Items

0%

10%

20%

30%

40%

50%

60%

70%

80%

2006 2007 2008 2009 2010 2011 1Q12

Tax

Perc

enta

ge

1Q12 Earnings Summary - KBR

Revenue, excluding LogCAP, up 5% year-over-year

Operating income of $112 million compared to $144 million year-over-year

Effective tax rate of 9% compared to 16% year-over-year

Earnings per diluted share of $0.61 compared to $0.69 year-over-year

Cash and equivalents of $837 million compared to $788 million year-over-year

Backlog of $15.8 billion compared to $12.0 billion year-over-year

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Note: All statements reflected on this slide are as of KBR’s 1Q12 earnings conference call on April 26, 2012

1Q12 Earnings Summary - Hydrocarbons

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($ in millions)

$ Change % Change $ Change % Change

Revenue: $ 1,116 $ 1,047 69 7% $ 989 127 13%

Job Income: 136 125 11 9% 129 7 5%

2012 2011 2011

Three Months EndedMarch 31, March 31, December 31,

Job Income (JI) up $11 million compared to first quarter 2011; related to: Gas Mon JI up $15M, primarily related to start-up of Ichthys LNG proj and increased activity on other LNG projects, partially offset by lower work vol on Skikda LNG and Pearl GTL projects; and

Downstream JI down $5M, primarily related to lower vol on projects in the Middle East nearing completion and lower volon a refinery proj in Africa, partially offset by increased profits from projects in the U.S. and KBR-AMCDE in Saudi Arabia

1Q12 Earnings Summary - IGP

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($ in millions)

$ Change % Change $ Change % Change

Revenue: $ 518 $ 855 (337) -39% $ 707 (189) -27%

Job Income: 75 107 (32) -30% 94 (19) -20%

March 31, March 31, December 31,Three Months Ended

2012 2011 2011

Job Income (JI) down $32 million compared to first quarter 2011; related to: NAGL JI down $40M, primarily related to completion of ops under LogCAP III and $16M in award fees received in 1Q11 which did not reoccur in 1Q12, partially offset by JI related to the LogCAP IV contract

IGDSS JI up $19M, primarily related to reduced cost est for construction activities on Allenby & Connaught project, increased activity on a NATO contract in Afghanistan, and a project close-out on an Afghanistan infrastructure project

Infrastructure JI down $7M, primarily related to 1Q11 incentive fee of $10M received on transport project which did not reoccur in 1Q12, partially offset by higher work vol on two expressway projects in Qatar and Australia

Minerals JI down $8M, primarily related to costs and schedule issues to complete a legacy EPC proj, partially offset by higher activity on Hope Downs 4 iron ore proj and Rio Tinto fuels infrastructure and logistics proj

P&I JI up $4M, primarily related to increased activity on waste-to-energy and coal gasification projects, partially offset by lower work vol from the completion of a waste-to-energy refurbishment project

1Q12 Earnings Summary – Services

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($ in millions)

$ Change % Change $ Change % Change

Revenue: $ 348 $ 397 (49) -12% $ 378 (30) -8%

Job Income: 28 32 (4) -13% 30 (2) -7%

2012 2011 2011March 31, March 31, December 31,

Three Months Ended

Job Income (JI) down $4 million compared to first quarter 2011; related to: Lower work vol on U.S. Const and Indust Svcs’ projects and lower activity due to maintenance on a vessel in the MMM JV, partially offset by increased activity on a new module assembly project and other projects in the Canada Operations

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Why KBR?

Investment Thesis

Fundamentally strong, global growth company with diverse portfolio of businesses

Multiple platforms for acceleration of new orders across global end markets

Strong balance sheet with emphasis on cash management

Patience, prudence and discipline in managing KBR’s businesses

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