March Investor Update

A World of Solutions

CB&I Investor PresentationMarch 2017

A Leading Provider of Technology and Infrastructure for the Energy Industry

A World of Solutions 2

Safe Harbor Statement

This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning

future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements

provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks

and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or

conditions, or use or contain words, terms, phrases or expressions such as “achieve,” “forecast,” “plan,” “propose,” “strategy,”

“envision,” “hope,” “will,” “continue,” “potential,” “expect,” “believe,” “anticipate,” “project,” “estimate,” “predict,” “intend,” “should,”

“could,” “may,” “might” or similar forward-looking statements, we refer you to the cautionary statements concerning risk factors

and “Forward-Looking Statements” described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed with

the SEC for the year ended December 31, 2016, and any updates to those risk factors or “Forward-Looking Statements”

included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated

herein by reference.


Overview

Leading provider of technology and infrastructure for the energy industry, with a focus on key end markets

LNG

Petrochemical

Refining

Natural Gas Fired Power Plants

Market Cap of ~$3.4 Billion (February 2017)

$18.5 Billion Backlog (December 31, 2016)

Business model generates strong operating cash flows: $802 million for 2016

More than 40,000 employees worldwide

More than 125 years of experience and expertise in reliable solutions

Relentless focus on safety: 0.01 LTIR for 2016

Note: Full Year 2016 Operating Cash Flows includes contributions from equity-method ventures


More than 125 Years of Excellence

CB&I Values Safety Ethics Teamwork Innovation

Customers Quality Reliability Delivery Scale

Shareholders Earnings growth Sustainability Share value

CB&I Values

Customers

Shareholders


Breadth of Services

Fabrication Services

Fabrication & erection

Process & modularization

Pipe fitting and distribution

Engineered products

Specialty equipment

Engineering

Procurement

Construction

Commissioning

Engineering & ConstructionTechnology

Licensed technology

Proprietary catalysts

Technical services

Capital Services

Program management

Maintenance services

Remediation and restoration

Emergency response

Environmental consulting

Note: Adjusted Operating Income excludes impact of a goodwill impairment charge and a transaction receivable reserve recorded in the fourth quarter of 2016


Experience and Global ReachCompetitive Advantage: Experience and Global Reach

50+ years

75+ years

125+ years 70+ years

100+ years

75+ years

70+ years


Backlog Profile

Note: Fixed-Price contract type includes: Fixed-Price, Hybrid and Unit Based contracts


Competitive Advantage: Complete Supply Chain Solution

Ve

rtic

all

y I

nte

gra

ted

Project Lifecycle

Add value throughout the project lifecycle

Operational consistency through standardization

Traditional EPC solutions

Specialized project lifecycle offerings

Technology

FEED

Permitting

Engineering

Procurement

Fabrication

Construction

Close-out


Competitive Advantage: Diversified Across Energy Infrastructure


Technology Group Overview

Differentiation

Most complete portfolio of olefins technologies

World leader in heavy oil upgrading technologies

Breadth of technologies provides complete solutions

Strategic Benefit

Operating income driver

Recurring earnings streams

Early visibility to customers

Capabilities

Petrochemical, gas processing and refining technologies

Proprietary catalysts

Consulting and technical services


Differentiation

Execution excellence

Global footprint

Self-perform capabilities

Direct-hire labor

Contracting flexibility

Strategic Benefit

Critical mass

Backlog and revenue driver

Integrated offerings

Engineering & Construction Group Overview

Capabilities

Engineering, procurement and construction (EPC)

Energy-focused, end-market diversity including:

Petrochemicals

LNG

Refining

Combined-cycle power


Fabrication Services Group Overview

Differentiation

Global brand leadership; mega-project capability in plate structures, pipe fabrication, modules

Large-scale fabrication facilities and yards

Induction bending technology drives quality and savings

Strategic Benefit

Stable business underpinning

Diversification of offerings

Client access

Capabilities

Engineering, procurement, fabrication and erection of liquid and gas structures

Pipe fabrication; process modules; pipe & fitting distribution

Self-perform fabrication and erection capabilities worldwide

Proprietary equipment and engineered products


Capital Services Business: Divestiture

Enables CB&I to focus on core capabilities in E&C, Fabrication and Technology

$755 million, earmarked for debt reduction

Will enable a significant reduction in total debt of $2.2 billion (at December 31, 2016)

Expected to close in the second quarter of 2017

Context: Capital Services contribution to CB&I’s 2016 consolidated results

$2.2 billion of revenue

$2.2 billion of new awards

$5.4 billion of backlog

$63 million of operating income (excluding impairment charge)


Objective: Deliver Improved P/E Multiple & Long Term Value

Drive revenue and earnings growth through:

Operational Performance

• Disciplined approach to margins and risk

• Successful backlog execution

• Integrated Self Perform Model

Drive shareholder returns through:

Capital Allocation

• Organic and strategic growth opportunities

• Reduce Total Debt

• Share repurchases

• Dividends

Drive valuation through:

Financial Performance

• Generate operating cash Flows ≥ net income

• Strategic tax planning

• Target S&A expense at 3% of revenue


2017 Guidance Drivers

Revenue Guidance: $9.5 - $10.5 billion

Approximately 80% of 2017 revenue guidance in backlog at the end of 2016

EPS Guidance: $4.00 - $4.60

Operating Cash Flow Guidance: At or above net income

CB&I will update 2017 guidanceafter closing the sale of Capital Services

March Investor Update

Investor Relations

Transcript of March Investor Update