shaw group 152A0578-4153-49F7-B4CB-46EA9FAD8C71_SGR_KeyBanc

85M1

0200

6D

Thursday, December 11, 2008

Brian K. FerraioliExecutive Vice President & Chief Financial Officer

The Shaw Group Inc.

Company Overview

02M1

0200

7D

22

1987: Established Shaw Group1987: Established Shaw Group

Annual Revenues ($B)

01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

02M1

0200

7D

33

1993: Initial Public Offering on NASDAQ: “SHAW” 1996: Listing Moved to NYSE: “SGR”

1993: Initial Public Offering on NASDAQ: “SHAW” 1996: Listing Moved to NYSE: “SGR”


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1993 Revenues: $100M1993 Employees: 750

1996 Revenues: $250M1996 Employees: 1,800

1993 Revenues: $100M1993 Employees: 750

1996 Revenues: $250M1996 Employees: 1,800

02M1

0200

7D

44

1998: Acquired Cojafex 1998: Acquired Cojafex


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1998 Revenues: $500M1998 Employees: 4,5001998 Revenues: $500M1998 Employees: 4,500

02M1

0200

7D

55

2000: Acquired Stone & Webster 2000: Acquired Stone & Webster


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2000 Revenues: $750M2000 Employees: 13,0002000 Revenues: $750M

2000 Employees: 13,000

02M1

0200

7D

66

2002: Acquired the IT Group 2002: Acquired the IT Group


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2002 Revenues: $3.1B2002 Employees: 17,0002002 Revenues: $3.1B


02M1

0200

7D

77

2003: First Appeared on the Fortune 500 List2003: First Appeared on the Fortune 500 List


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



02M1

0200

7D

88

2004: 500 MW Gas Plant for NYC Using Modular Construction Techniques

2004: 500 MW Gas Plant for NYC Using Modular Construction Techniques


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

HRSGs built in Indonesia



02M1

0200

7D

99

2005: Hurricane Katrina Floodwaters Removed from New Orleans in 17 Days . . .

2005: Hurricane Katrina Floodwaters Removed from New Orleans in 17 Days . . .


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

. . . Experts said it would take 80 days!



02M1

0200

7D

1010

2006: Acquired 20% of Westinghouse Nuclear 2006: Acquired 20% of Westinghouse Nuclear


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

AP1000 reactor – only NRC-certified 3rd generation reactor technology



02M1

0200

7D

1111

2007: Signing of China Nuclear Contracts; Charlotte, NC Named HQ for Shaw Power 2007: Signing of China Nuclear Contracts; Charlotte, NC Named HQ for Shaw Power


01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



02M1

0200

7D

2008: AP1000™ New Build Contracts 2008: AP1000™ New Build Contracts

12

TVA/NuStartBellefonte site (2 units)

Progress EnergyShearon Harris site (2 units)

Duke EnergyW.S. Lee site (2 units)

South Carolina Electric & Gasand Santee CooperV.C. Summer site (2 units)

Southern CompanyVogtle site (2 units)

Florida Power & LightTurkey Point site (2 units)

Progress EnergyLevy County site (2 units)

Westinghouse / Shaw Consortium furnishes AP1000™ to domestic utilities:

• Conceptual design• Detailed engineering• Project management• Construction management• Engineering and design

services• Site-specific engineering• Turnkey modifications

Executed EPC contracts with Southern Co. & SCANA; Letter agreement in place with Progress Energy


TVA/NuStartBellefonte site (2 units)

Progress EnergyShearon Harris site (2 units)

Duke EnergyW.S. Lee site (2 units)

South Carolina Electric & Gasand Santee CooperV.C. Summer site (2 units)

Southern CompanyVogtle site (2 units)

Florida Power & LightTurkey Point site (2 units)

Progress EnergyLevy County site (2 units)

Westinghouse / Shaw Consortium furnishes AP1000™ to domestic utilities:

• Conceptual design• Detailed engineering• Project management• Construction management• Engineering and design

services• Site-specific engineering• Turnkey modifications




01234567

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



02M1

0200

7D

13

Business SegmentsBusiness Segments

The Shaw Group Inc. is a full service provider of engineering, design, technology, procurement, construction, maintenance, fabrication, manufacturing, consulting and facilities management services for private sector and government clients in the energy, chemicals, environmental,

infrastructure and emergency response markets.

Environmental & Infrastructure

Energy & Chemicals

Fabrication & Manufacturing

Power: Maintenance

Power: Fossil & Nuclear

02M1

0200

7D

• Shaw ranked #1 in Power on ENR’s list of Top 500 Design Firms (published April 2008)

• Power Group (Fossil & Nuclear segment plus Maintenance segment) generated $3.7 billion in revenues in FY08 (over 50% of total Shaw revenues) and 48% of backlog at 8/31/08

• In addition, approx. 40% of the F&M segment’s revenues and 42% of their backlog at 8/31/08 are derived from the Power industry

• Shaw is uniquely positioned to address the global power market demands that are expected to continue for decades

Shaw is Ranked #1 in PowerShaw is Ranked #1 in Power

14

02M1

0200

7D

15

Major Power Market OpportunitiesMajor Power Market Opportunities

South Africa

India

China

Indonesia & The Philippines

Europe

United States

Australia & New Zealand

IEA forecasts $5.2 trillion in global power generation investment from 2005-2030

IEA forecasts $5.2 trillion in global power generation investment from 2005-2030

Brazil

02M1

0200

7D

16

Fossil & NuclearFossil & Nuclear

Fossil & Nuclear Backlog:

$6.1 billion

39%

Total Shaw Backlog: $15.6 billion

• Worldwide demand for new generation still growing – Shaw Power positioned to be EPC provider of choice

• RWE opportunities for U.K. coal projects continue as planned

• Continue to see new interest in AP1000™ projects

• Continue to see strong demand for scrubber work

• Duke Energy: $1.5B AQS for multiple coal-fired facilities

• Duke Energy: $1B+ Cliffside 800 MW Super Critical replacement

• China Nuclear (Engineering services)• Southern Company, SCE&G,

Progress Energy: 6 New Nuclear reactors – (not in backlog)

• RWE: Services contract for U.K. replacement program (not in backlog)

Market Trends Major Projects

Backlog EBITDA

FY 2006 FY 2007 FY 2008 FY 2006 FY 2007 FY 2008

$6.8B$6.1B

($12M)

$51M

$125M

$3.2B

02M1

0200

7D

17

Strong Fossil Power New Build and Emission Control Portfolio

Strong Fossil Power New Build and Emission Control Portfolio

Duke Energy - Marshall, Belews Creek,

Allen, and Cliffside WFGD Retrofits

Dominion - Chesterfield 6WFGD Retrofit

PPL - Montour 1 & 2WFGD Retrofit

PPL - Brunner Island 1-3 WFGD Retrofit

CLECO - Rodemacher 3660MW CFB

Dominion - Brayton Point Mercury Control & DFGD

Retrofit

Reliant - Keystone 1&2WFGD Retrofit

PSEG - Mercer 1&2/ Hudson 2FGD & Mercury Control

Xcel - Comanche 3750MW Super Critical

Mirant - Morgantown, Chalk Point, and Dickerson

WFGD Retrofit

NRG - Huntley 67&68/ Dunkirk 1-4Mercury Control

AEP - Turk600MW Super Critical

Dominion - Virginia City Hybrid Energy Center

600MW CFB

PSEG - Bridgeport HarborMercury Control

Entergy - Little Gypsy 600MW CFB

International:

Castle Peak Units 1-4 (Hong Kong) Limestone/ Gypsum FGD

RWE (UK) Engineering Plans for 5 x 800MW Super Critical Coal-Fired new build

Duke - Cliffside800MW Super Critical

Duke - Buck620MW CC Gas Plant

New Build Projects

NV Energy – Harry Allen500MW CC Gas Plant

02M1

0200

7D

TVA/NuStart Bellefonte site (2 units)

Progress Energy Shearon Harris site (2 units)

Duke Energy W.S. Lee site (2 units)

South Carolina Electric & Gas and Santee Cooper V.C. Summer site (2 units)

Southern Company (Georgia Power) Vogtle site (2 units)

Florida Power & Light Turkey Point site (2 units)

Progress Energy Florida Levy County site (2 units)

AP1000™ Contract UpdateAP1000™ Contract Update

18

Recent activities from Southern Company (Georgia Power):

• Company continues the certification process for Vogtle units 1 and 2 with target startup dates in 2016 and 2017, respectively

• Management indicated on recent earnings call a continued need for baseload capacity in the 2016-2017 timeframe, even under the current economic conditions

• Georgia legislature has passed legislation for cost recovery under certain situations

02M1

0200

7D









19

Recent activities from SCE&G / Santee Cooper:

• Received approval on September 25, 2008 from the Public Service Commission of South Carolina to proceed with initial clearing, excavation and construction work at the site near Jenkinsville

• Management indicated on recent earnings call that the project remains on schedule as previously planned

• We continue to receive strong indications that the project will proceed on schedule

02M1

0200

7D









20

Recent activities from Progress Energy:

• Company expects startup dates for Levy units 1 and 2 to be 2016 and 2017, respectively

• Florida legislature supports nuclear and has passed legislation for pre-construction cost recovery

• We continue to progress the EPC contract; expect an award prior to year-end

02M1

0200

7D

21

MaintenanceMaintenance

Maintenance Backlog: $1.4 billion

9%


• Provide services at 41 of the 104 operating U.S. nuclear reactors

• Life extension and capacity increases expected to lead to increased power maintenance needs

• Seasonal power plant outages in Q-1 and Q-3 are a continued source of revenues

• Exelon: Maintenance & modification services for 17 reactor fleet

• Exelon: Maintenance & modification services for 11 reactor fleet

• Albemarle: Maintenance and construction services at 5 U.S. manufacturing plants

• TVA: Maintenance and modification services at multiple sites


Backlog EBITDA

FY 2006 FY 2007 FY 2008 FY 2006 FY 2007 FY 2008

$1.7B

$1.4B

$23M

$14M

$37M$1.3B

02M1

0200

7D

22

Energy & ChemicalsEnergy & Chemicals

E&C Backlog: $2.2 billion

14%


• Markets remain strong with high global demand for olefins and derivatives

• Substantial growth in engineering and construction industry continuing

• If the petrochemical and ethylene markets slow, E&C companies will likely focus on higher margin technology and consulting services

• ExxonMobil: $1B+ brownfield ethylene project in Singapore

• SHARQ (SABIC): $1B+ ethylene project in Saudi Arabia

• Hyundai Oil: professional services and equipment procurement for major refinery expansion in South Korea

• Hoku Scientific: polysilicon manufacturing facility


Backlog EBITDA

FY 2006 FY 2007 FY 2008 FY 2006 FY 2007 FY 2008

$2.6B

$2.2B

$8M

$35M

$96M

$1.4B

02M1

0200

7D

23

Fabrication & ManufacturingFabrication & Manufacturing

F&M Backlog:$0.8 billion

5%


• Market remains robust, driven by plant expansions and new build opportunities

• Induction bend market continues to be robust

• Capacity continues to drive market pricing

• Middle East market expanding• Other international markets

have high potential to expand

• Marathon Detroit and Garyville, LA refinery expansions

• ExxonMobil: Singapore ethylene project

• U.S. Department of Energy Mixed Oxide (MOX) fuel fabrication facility

• Industrial pipe fabrication for major E&C competitors, including Fluor & Bechtel


Backlog EBITDA

FY 2006 FY 2007 FY 2008 FY 2006 FY 2007 FY 2008

$0.7B$0.8B

$49M

$96M

$126M

$0.4B

02M1

0200

7D

24

Module Fabrication and Assembly Facility Module Fabrication and Assembly Facility

• $100 million / 600,000 square foot facility located in Lake Charles, LA • Will produce structural, piping and equipment modules for new nuclear

power plants utilizing the Westinghouse AP1000™ technology• Facility will employ 1,400 workers or more at full capacity

02M1

0200

7D

25

Environmental & InfrastructureEnvironmental & Infrastructure

E&I Backlog: $5.1 billion

33%


• Federal spending continues with focus on economic stimulus, terrorism and military transformation for the 21st century

• Expect increased demand for infrastructure projects, such as levee systems, bridges, and water treatment plants

• Department of Energy’s MOX fuel fabrication facility: $2.5B construction contract

• U.S. Army Corps of Engineers: $700M design and construction of the Inner Harbor Navigation Canal Hurricane Protection in New Orleans

• Dept. of Energy: principal subcontractor on Yucca Mountain Project

• FEMA: pre-approved emergency response contractor


Backlog EBITDA

FY 2006 FY 2007 FY 2008 FY 2006 FY 2007 FY 2008

$2.6B

$5.1B $136M

($18M)

$50M

$2.8B

02M1

0200

7D

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

26

Backlog by Business Segment

Consolidated Backlog and Backlog Conversion (as of 8/31/08)

Consolidated Backlog and Backlog Conversion (as of 8/31/08)

Consolidated


Fabrication & Manufacturing

Energy & Chemicals

Fossil & Nuclear

$4.8B$5.8B

$6.7B

$9.1B

$14.3B

$2.6B

$2.6B

$6.7B

$0.7BMaintenance

$1.7B

$0.4B

$1.3B

$1.4B

$2.8B

$3.2B

Expected Backlog Conversion

Backlog excludes majority of domestic nuclear work expected to be performed under signed EPC contracts (Georgia Power & SCE&G) and Interim Agreement (Progress Energy Florida)

Backlog excludes majority of domestic nuclear work expected to be performed under signed EPC contracts (Georgia Power & SCE&G) and Interim Agreement (Progress Energy Florida)

$6.1B

$1.4B

$5.1B

$2.2B

$0.8B

$15.6B 13-24 months27%

Next 12 months

37%

Greater than24 months

36%

$5.7B

$4.2B

$5.7B

02M1

0200

7D

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Full Spectrum of Shaw’s Workload Approaching $40B Full Spectrum of Shaw’s Workload Approaching $40B 27

Fossil and Nuclear Projects Present Significant Upside To Current Backlog

Fossil and Nuclear Projects Present Significant Upside To Current Backlog

$6.1B

$1.4B

$0.8B$2.2B

$5.1B$6.7B

$9.1B

$14.3B

$4.8B $5.8B

$37.6B


Fabrication & ManufacturingConsolidated

Energy & Chemicals

Fossil & NuclearMaintenance

Backlog + Projects Where Shaw Has Been Selected But Work Has Not Been Released

$22.0B

• RWE• Progress

Energy• SCE&G /

Santee Cooper • Southern

(Georgia Power)

Total - $15.6B

Fossil & Nuclear – selected but projects not in backlog

02M1

0200

7D

28

Stable Customer Base in Uncertain TimesStable Customer Base in Uncertain Times• Regulated Utilities

– Solid balance sheets backed by the ability to recover costs through the regulatory process; capital projects are long-term (multi-decade) investments not subject to short-term economics

• National or International Oil Companies– Large amounts of cash on hand; long-

term investment horizon; government backing; current oil prices still at historically high levels

• U.S. Government– Spending should remain strong

regardless of the election; focus likely to remain on economic stimulus, military transformation, terrorism, and infrastructure improvements

Shaw’s $15.6B Backlog at 8/31/08 is Comprised of 3 Major

Customer Classes

Regulated Utilities:

37%

National or International Oil

Companies: 15%

U.S. Government:

32%

Other: 16%

Approximately 84%, or $13B, of backlog is comprised of regulated utilities, national or international oil companies, and the U.S. Government, who provide

financial strength and stability, are expected to continue capital investments, and who should reduce the risk of project delays, payment defaults, or cancellations.

Approximately 84%, or $13B, of backlog is comprised of regulated utilities, national or international oil companies, and the U.S. Government, who provide

financial strength and stability, are expected to continue capital investments, and who should reduce the risk of project delays, payment defaults, or cancellations.

02M1

0200

7D

29

Major Project Clients Major Project Clients

02M1

0200

7D

30

FY 2008: Year in SummaryFY 2008: Year in Summary

• Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M• Record EBITDA, Net Income, and EPS• Record Operating Cash Flow; total cash balance $937M• Strong new orders result in a $15.6 billion backlog as we enter 2009

• Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M• Record EBITDA, Net Income, and EPS• Record Operating Cash Flow; total cash balance $937M• Strong new orders result in a $15.6 billion backlog as we enter 2009

FY 2008 FY 2007(in millions, except per share data)

As Reported Westinghouse Segment

Actuals Excluding

Westinghouse

Actuals Excluding

Westinghouse

Revenue $ 6,998.0 $ 0.0 $ 6,998.0 $ 5,723.7

Gross Profit 586.0 0.0 586.0 375.4

GP% 8.4% N/A 8.4% 6.6%

EBITDA 316.6 (45.9) 362.5 92.1

EBITDA % 4.5% N/A 5.2% 1.6%

Net Income 140.7 (50.7) 191.4 19.4

Diluted EPS 1.67 (0.60) 2.27 0.24

Operating Cash Flow 623.9 (25.9) 649.8 477.4

New Awards 8,282.7 N/A 8,282.7 10,941.1

Record Performance

02M1

0200

7D

31

FY 2008: Segment AnalysisFY 2008: Segment Analysis

Fossil & Nuclear: Higher volume and improved margins even with profit reversal on coal project E&C: Significantly improved performance and higher pricing driving bottom-line growthMaintenance: Increase in higher-margin construction projects in FY08, charges in FY07E&I: Improved execution year-over-yearF&M: Continued solid performance

Fossil & Nuclear: Higher volume and improved margins even with profit reversal on coal project E&C: Significantly improved performance and higher pricing driving bottom-line growthMaintenance: Increase in higher-margin construction projects in FY08, charges in FY07E&I: Improved execution year-over-yearF&M: Continued solid performance

1E&C revenues presented excluding pass through costs of $527.6M and $422.6M for Q-4 FY2008 and Q-4 FY2007, respectively.2E&I revenues presented net of recently consolidated military privatization joint venture revenues of $38.8M and $28.3M in Q-4 FY2008 and Q-4 FY2007, respectively.

Revenue Gross Profit Gross Profit %

(in millions) FY 2008 FY 2007 FY 2008 FY 2007 FY 2008 FY 2007

Fossil & Nuclear $ 2,655.1 1,635.6 $ 153.1 $ 75.0 5.8% 4.6%

E&C1 755.7 641.3 124.3 70.2 16.4% 10.9%

Maintenance 1,018.2 1,081.5 49.4 19.9 4.9% 1.8%

E&I2 1,423.3 1,441.0 105.9 94.7 7.4% 6.6%

F&M 576.6 472.8 150.0 115.0 26.0% 24.3%

Corporate 2.7 0.6 3.3 0.6 N/M N/M

$ 6,431.6 $ 5,272.8 $ 586.0 $ 375.4 9.1% 7.1%

Record Performance

02M1

0200

7D

FY 2005 FY 2006 FY 2007 FY 2008

CashDebt

32

Cash and Debt: 2005-2008Cash and Debt: 2005-2008

Operating Cash Flow of $624M for FY 2008Operating Cash Flow of $624M for FY 2008Notes:1. Cash balance represents the sum of cash, cash equivalents and restricted cash.2. Total debt excludes Japanese Yen-denominated bonds secured by Investment in Westinghouse.

Record Performance

$227M$199M

$361M

$937M

$78M$185M

$17M $10M

02M1

0200

7D

33

Summary of FY 2008Summary of FY 2008• Company continued to grow in terms of bookings, revenue, and earnings

• Ranked “#1 in Power” by ENR magazine; F&M continues to be best in class; E&C and E&I much improved; and Maintenance remains steady

• Signed domestic nuclear new build contracts for 6 reactors

• Record financial results: Revenue, EBITDA, Net Income, EPS, Operating Cash Flow, and Cash Balance

• Received credit rating upgrades from Moody’s and S&P

• Increased credit facility from $850M to $1.05B; subsequent to year-end, extended $829M of the credit facility one year and amended facility to allow $200M million cash collateral letters of credit

• Have a strong backlog entering Fiscal 2009

02M1

0200

7D

34

FY2009 Guidance FY2009 Guidance

Metric Guidance

Revenue $7.1 - $7.3 Billion

Diluted EPS, excluding Westinghouse $2.50 - $2.70 per share

Operating Cash Flow $250 - $300 Million

Earnings expected to be driven by projects in backlog from Fossil & Nuclear, F&M, and E&C.

Operating Cash Flow expected to be driven primarily by Fossil & Nuclear.

Earnings expected to be driven by projects in backlog from Fossil & Nuclear, F&M, and E&C.

Operating Cash Flow expected to be driven primarily by Fossil & Nuclear.

02M1

0200

7D

• 2008 was a strong year for Shaw with record earnings and cash flow

• Backlog positions us for a stronger year in 2009

• First EPC Nuclear projects remain on track

• Our focus on regulated electric utilities, national and international oil companies, and the U.S. Government should help shield us from any major economic downturn

35

Conclusion Conclusion

02M1

0200

7D

36

Forward Looking Statements & Regulation G Disclosure

Forward Looking Statements & Regulation G Disclosure

This presentation contains forward-looking information and statements within the meaning of the Private Securities Litigation Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their effect on us. However, the absence of these words does not mean that the statements are not forward-looking. Our forward-looking statements involve significant risks and uncertainties, some of which are beyond our control and actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including the factors we discuss or refer to in the “Risk Factors” section of our most recent Annual Report on Form 10-K, Quarterly Reports on Forms 10- Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission and on our website under the heading “Forward-Looking Statements.”

This presentation contains non-GAAP measures as defined by the Securities and Exchange Commission rules. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached appendix and on our website at www.shawgrp.com in the Investor Relations section under Regulation G Disclosures.

02M1

0200

7D

37

Appendix 1: EBITDA Reconciliation FY 2008


Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance.

(in millions)

Net Income (Loss) 140.7$ (50.7)$ 191.4$ Interest Expense 46.0 37.4 8.6 Depreciation and Amortization 47.1 - 47.1 Provision for Income Taxes 71.4 (42.2) 113.6 Income Taxes on Unconsolidated Subs 11.4 9.6 1.8 EBITDA 316.6$ (45.9)$ 362.5$

Revenue 6,998.0 N/A 6,998.0 EBITDA % 4.5% N/A 5.2%

FY 2008

ConsolidatedWestinghouse

Segment Excluding

Westinghouse

02M1

0200

7D

38



Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance.

(in millions)

Net Income (Loss) (19.0)$ (38.4)$ 19.4$ Interest Expense 43.4 30.6 12.8 Depreciation and Amortization 41.3 - 41.3 Provision for Income Taxes 10.7 (26.1) 36.8 Income Taxes on Unconsolidated Subs (16.8) 1.4 (18.2) EBITDA 59.6$ (32.5)$ 92.1$

Revenue 5,723.7 N/A 5,723.7 EBITDA % 1.0% N/A 1.6%

FY 2007

ConsolidatedWestinghouse

SegmentExcluding

Westinghouse

02M1

0200

7D

39

Appendix 1: Segment EBITDA Reconciliation FY 2008 & FY 2007

Appendix 1: Segment EBITDA Reconciliation FY 2008 & FY 2007

Note: Segment EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance.

(in millions)

Income (loss) before income taxes, and earnings (losses) from unconsolidated entities 42$ 35$ 9$ 18$ 91$ Interest Expense 2 1 - 1 1 Depreciation and Amortization 7 7 5 15 6 Unconsolidated Subs, pre-tax - 1 - (46) 0 Minority Interest, pre-tax - (9) - (6) (2) EBITDA 51$ 35$ 14$ (18)$ 96$

MaintenanceEnvironmental &

InfrastructureFabrication & Manufacturing

FY 2007

Fossil & NuclearEnergy &

Chemicals

(in millions)

Income (loss) before income taxes, and earnings (losses) from unconsolidated entities 113$ 97$ 34$ 39$ 127$ Interest Expense 1 2 (0) 1 (1) Depreciation and Amortization 11 7 3 15 8 Unconsolidated Subs, pre-tax - 3 - (0) 0 Minority Interest, pre-tax - (13) - (5) (8) EBITDA 125$ 96$ 37$ 50$ 126$

FY 2008


Chemicals MaintenanceEnvironmental &


02M1

0200

7D

40

Appendix 1: Segment EBITDA Reconciliation FY 2006

Appendix 1: Segment EBITDA Reconciliation FY 2006

Note: Segment EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance.

(in millions)

Income (loss) before income taxes, and earnings (losses) from unconsolidated entities (18)$ 7$ 18$ 125$ 48$ Interest Expense 1 0 - 0 1 Depreciation and Amortization 5 5 4 12 5 Unconsolidated Subs, pre-tax - 1 - 5 (2) Minority Interest, pre-tax - (5) 1 (6) (3) EBITDA (12)$ 8$ 23$ 136$ 49$


Chemicals MaintenanceEnvironmental &


FY 2006

02M1

0200

7D

41

Appendix 2: FY 08 Reconciliation of Income excluding Westinghouse


Note: Presents our income statement excluding the Investment in Westinghouse segment

(in millions, except per share data)

Westinghouse ExcludingConsolidated Segment Westinghouse

Revenues $6,998.0 $0.0 $6,998.0Cost of revenues 6,412.0 0.0 6,412.0

Gross profit 586.0 0.0 586.0

General and administrative expenses 276.3 0.9 275.4

Operating income (loss) 309.7 (0.9) 310.6

Interest expense (8.6) 0.0 (8.6)Interest expense on JPY-denominated bonds including accretion and amortization (37.4) (37.4) 0.0Interest income 20.9 0.0 20.9Foreign currency translation gains (losses) on JPY-denominated bonds, net (69.7) (69.7) 0.0Other foreign currency transaction gains (losses), net 6.6 0.0 6.6Other income (expense), net (1.0) 0.1 (1.1)

(89.2) (107.0) 17.8Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities (b) 220.5 (107.9) 328.4Provision (benefit) for income taxes (a) 71.4 (42.2) 113.6

Income (loss) before minority interest and earnings (losses) from unconsolidated entities 149.1 (65.7) 214.8

Minority interest (c) (26.1) 0.0 (26.1)Income from 20% Investment in Westinghouse, net of income taxes 15.0 15.0 0.0Earnings (losses) from unconsolidated entities, net of income taxes 2.7 0.0 2.7Net income (loss) $140.7 ($50.7) $191.4

Net income (loss) per common share: Basic income (loss) per common share 1.71$ (0.62)$ 2.33$ Diluted income (loss) per common share 1.67$ (0.60)$ 2.27$

Weighted average shares outstanding:Basic 82.1 82.1 82.1Diluted: 84.2 84.2 84.2

Effective tax rate [a/(b+c)] 37% 39% 38%

FY 2008Twelve months ended August 31, 2008

02M1

0200

7D

42



Note: Presents our income statement excluding the Investment in Westinghouse segment

(in millions, except per share data)

Westinghouse ExcludingConsolidated Segment Westinghouse

Revenues $5,723.7 $0.0 $5,723.7Cost of revenues 5,348.3 0.0 5,348.3

Gross profit 375.4 0.0 375.4

General and administrative expenses 274.5 2.9 271.6

Operating income (loss) 100.9 (2.9) 103.8

Interest expense (12.8) 0.0 (12.8)Interest expense on JPY-denominated bonds including accretion and amortization (30.6) (30.6) 0.0Interest income 13.8 0.0 13.8Foreign currency translation gains (losses) on JPY-denominated bonds, net (33.2) (33.2) 0.0Other foreign currency transaction gains (losses), net (5.3) 0.0 (5.3)Other income (expense), net 0.3 0.0 0.3

(67.8) (63.8) (4.0)Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations (b) 33.1 (66.7) 99.8Provision (benefit) for income taxes (a) 10.7 (26.1) 36.8

Income (loss) before minority interest and earnings (losses) from unconsolidated entities 22.4 (40.6) 63.0

Minority interest (c) (17.7) 0.0 (17.7)Income from 20% Investment in Westinghouse, net of income taxes 2.2 2.2 0.0Earnings (losses) from unconsolidated entities, net of income taxes (25.9) 0.0 (25.9)Net income (loss) ($19.0) ($38.4) $19.4

Net income (loss) per common share: Basic income (loss) per common share (0.24)$ (0.48)$ 0.24$ Diluted income (loss) per common share (0.24)$ (0.48)$ 0.24$

Weighted average shares outstanding:Basic 79.9 79.9 79.9Diluted: 79.9 79.9 81.8

Effective tax rate [a/(b+c)] 70% 39% 45%

FY 2007Twelve months ended August 31, 2007

02M1

0200

7D

43

Appendix 3: E&C Pass-Through Revenues and Cost Reconciliation FY08 & FY07

Appendix 3: E&C Pass-Through Revenues and Cost Reconciliation FY08 & FY07

Note: Reconciliation of revenues and cost of revenues to revenues and costs of revenues excluding pass-through costs

(in millions)Amount % Amount % Amount %

Income: Revenues 1,283.3$ 100.0% (527.6)$ 100.0% 755.7$ 100.0% Cost of Revenues 1,159.0 90.3% (527.6) 100.0% 631.4 83.6% Gross Profit 124.3$ 9.7% -$ 0.0% 124.3$ 16.4%


Income: Revenues 1,063.9$ 100.0% (422.6)$ 100.0% 641.3$ 100.0% Cost of Revenues 993.7 93.4% (422.6) 100.0% 571.1 89.1% Gross Profit 70.2$ 6.6% -$ 0.0% 70.2$ 10.9%

Energy and Chemicals FY 2007

Excluding Pass-Through Costs

Energy and Chemicals FY 2007 (Restated)


Pass-Through Costs





Pass-Through Costs

02M1

0200

7D

44

Appendix 3: E&I Pass-Through Revenues and Cost Reconciliation FY08 & FY07

Appendix 3: E&I Pass-Through Revenues and Cost Reconciliation FY08 & FY07

Note: Reconciliation of revenues and cost of revenues to revenues and costs of revenues excluding pass-through costs


Income: Revenues 1,462.1$ 100.0% (38.8)$ 100.0% 1,423.3$ 100.0% Cost of Revenues 1,356.2 92.8% (38.8) 100.0% 1,317.4 92.6% Gross Profit 105.9$ 7.2% -$ 0.0% 105.9$ 7.4%


Income: Revenues 1,469.3$ 100.0% (28.3)$ 100.0% 1,441.0$ 100.0% Cost of Revenues 1,374.6 93.6% (28.3) 100.0% 1,346.3 93.4% Gross Profit 94.7$ 6.4% -$ 0.0% 94.7$ 6.6%

Environmental & Infrastructure FY 2008



Environmental & Infrastructure FY 2008Pass-Through Costs


(Restated)


FY 2007Pass-Through Costs


FY 2007Excluding Pass-Through

Costs

02M1

0200

7D

45

Appendix 4: Total Debt ReconciliationAppendix 4: Total Debt Reconciliation

Note: To show our total debt excluding the Japanese Yen-denominated bonds

(in millions) FY 2008 FY 2007

Financed Insurance Premiums $0.0 $0.0Current maturities of long-term debt 4.5 5.4Short-term revolving line of credit 0.0 0.2Current portion of obligations under capital leases 1.5 2.1Short-term debt and current maturities of long-term debt 6.0 7.7

Revolving line of credit 0.0 0.0Long-term debt, less current maturities 3.3 7.5Obligations under capital leases, less current portion 0.3 1.8Long-term debt, less current maturities 3.6 9.3

Japanese Yen-denominated long-term bonds secured by Investment in Westinghouse, net 1,162.0 1,087.4

Total Debt $1,171.6 $1,104.4Less: Westinghouse Debt 1,162.0 1,087.4Total Debt, excluding Westinghouse $9.6 $17.0

shaw group 152A0578-4153-49F7-B4CB-46EA9FAD8C71_SGR_KeyBanc

Economy & Finance

Transcript of shaw group 152A0578-4153-49F7-B4CB-46EA9FAD8C71_SGR_KeyBanc