Honesty and openness with all of our stakeholders are among our core values. KBR believes that we can only experience effective operations where mutual trust exists. As we work toward an even safer, healthier, cleaner and more diverse future, KBR is pleased to share the programs that drive — and the data that backs up — our sustainability initiatives.

Safety ProgramsAs a result of the implementation of safety programs designed to raise awareness about potential hazards on the project site and in the office and how to avoid or correct them, total recordable safety incidents at KBR have declined by 73 percent since our first year as an independent company. Between 2011 and 2013, KBR attained 448 days without any recordable safety incident throughout all business groups. With each passing year, KBR strives to achieve an incident- and injury-free workplace — and our many safety programs are critical to this progress.

Health and Safety Management SystemThe OHSAS 18001 Health and Safety Management System, in which KBR is certified, reinforces the health and safety protocols that we use in our business operations through

adherence to strict global standards of risk management, emergency response planning and incident prevention. For more information about the certification programs in which KBR participates, please refer to page 27.

S.A.F.E. KBR developed the S.A.F.E. (Shaping Accident-Free Environments) program to reinforce our goal of achieving incident- and injury-free work. This program emphasizes the need for individuals to take ownership of their own safety and their colleagues’ safety, and provides employees with the necessary tools to empower them to make safety decisions — even stopping work when a potential hazard is identified, until the problem is corrected. KBR believes that a workplace culture that values self-responsibility fosters other important performance indicators, including high employee satisfaction, quality and profitability. It also instills attitudes and practices that encourages employees’ off-the-job environment to be as safe and healthful as the one at work. The S.A.F.E. program, with its goal of having each employee return home daily as healthy, functional and productive as they came to work, embodies our health and safety values as established in our Code of Business Conduct (COBC).

TransparencyProudly sharing our forward progress 13

Americas

Middle East

Europe

Australia

AsiaAfrica

51.8%

28.2%

7%

4.6%7%

1.4%

Recordable Incidents

Lost-Time Incidents

0

.10

.20

.40

.30

.50

.60

2013201220112010200920082007

.53(1045)

.47(1065)

.49(1048)

.20(389)

.19(424)

.19(398)

.39(629)

.12(201)

.37(468)

.10(128)

.38(279)

.06(47)

.35(284)

.09(73)

When transparency and mutual trust exist, our performance excels.

Safety Incidents, 2007 – 2013 Safety Incidents by Country/Region, 2011 – 20132011 2012 2013

Americas

Middle East

Europe

Australia

AsiaAfrica

44.7%

43.4%

4.5%

0.4%

5.3%

1.7%

Americas

Middle East

Europe

Australia

AsiaAfrica

59.5%

14.3%

7.9%

2.2%

15.4%

0.7%

Opposite and Above: KBR employees demonstrate safety practices

Safety incident numbers include subcontractors and joint ventures.

Life Safety — The KBR WayKBR is committed to being the company against which all others benchmark their safety performance. The only acceptable safety performance standard is the one that strives to eliminate workplace injuries. At KBR, no job or service is so important that we cannot take the time necessary to perform our work safely. We recognize that we cannot accomplish this goal alone — it must be a team effort, which includes our subcontractors and anyone who works on behalf of KBR.

KBR has identified seven high-risk activities and the associated safety behaviors that should be practiced to prevent injuries. Compliance is mandatory and a condition of employment with KBR.

KBR’s “7 Keys to Life” are:

1. Working at Heights — Fall Prevention2. Heavy Equipment Operations3. Lifting Operations — Certified Operator, Riggers and

Signalmen4. Work Hazard Control — Housekeeping, Overhead Work

and Motorized/Rotating Equipment5. Confined Space6. Hazardous Energy7. Vehicle Operations

KBR measures all safety incidents against the “7 Keys to Life.” By analyzing where and when failures occur, we establish trends regarding a higher risk for serious incidents and implement corrective actions to prevent recurrences.

Leading Indicators ManagementManaging safety incidents to minimize lost time or restricted duty, or to focus only on the total recordable incident rate, does little to promote an incident- and injury-free workplace. By the time an incident occurs, it is too late. Managing “leading indicators” of an incident allows KBR to proactively approach safety, and identify and correct problems, before an accident happens. With a forward-looking perspective, KBR promotes positive interventions and data collection, rather than report failures or catalogue lessons from failures, and assesses safety issues versus negative safety events.

Total Safety Task InstructionsTotal Safety Task Instructions (TSTI) is a safety communication, task-planning and risk management system where knowledge is shared among all project stakeholders to ensure tasks are completed without incidents, injuries, occupational health hazards or damage to equipment, facilities and the environment. By identifying hazards associated with performing specific tasks, controls are installed

to eliminate hazards, communicate safe work practices and implement preventative measures. KBR employees study and complete a safety instruction card, which demonstrates that employees have the required knowledge of and training in these processes before starting work on a specific task.

The TSTI program maximizes safety awareness through teamwork among business unit leadership, project management and workers, in alignment with our belief that all employees should participate in safety planning and decision making, take ownership of work processes and focus on continuous improvement.

Total Safety Task ObservationTotal Safety Task Observation (TSTO) is an observation program designed to reinforce safe working behaviors and practices, and help employees take ownership of their safety. In this program, observers spend an allotted amount of time each day watching work being performed and engaging the workforce in positive conversations. Work performance is deemed “Safe,” “Unsafe” or “Unseen” — and work behaviors and processes are always commended or challenged in a positive way. Observers submit their findings to the Health, Safety and Environment Department, which collects and interprets the data. These observations help us measure whether our people exhibit more safe behaviors versus unsafe behaviors. If TSTOs indicate an increase in unsafe behaviors, KBR management implements corrective actions.

KBR’s TSTO program offers many benefits, including frequent opportunities for management and workers to engage in safety conversations and work together to effect improvements.

Toolbox Safety MeetingsSafety meetings are required daily, weekly or monthly, per project assignment. Additionally, KBR provides Toolbox Safety Meetings, which are required as part of our company’s safety culture. Before starting work, each contractor hosts a daily meeting during which superintendents describe the activities to be performed and review appropriate safety practices. These meetings, as well as all safety and general meetings at KBR, begin with the presentation of a safety value moment to keep safety at the forefront of employees’ minds.

Management at every level of KBR is involved in safety discussions. Discussion of company safety trends, initiatives and performance occurs at weekly division and monthly regional meetings. The Vice President of Quality, Health, Safety and Environment also hosts a weekly meeting that involves the distribution of safety reports that summarize all injury, vehicle, equipment, property and environmental incidents.

14 15Job Name Year Hours Type

Akzo Nobel – Pasadena, Texas Since Last Lost-Time Incident

Alaska Occ Jov V Jv – Richardson, Alaska Since Last Injury/Illness Incident

Aspire Capital Works – Aldershot / Salisbury Plain, U.K. Since Last Injury/Illness Incident

BASF – McIntosh, Alabama Since Last Lost-Time Incident

Big Foot Topsides CVX – Gulf of Mexico (U.S.) Without Recordable Incident

BP Chemicals – Decatur, Alabama Since Last Lost-Time Incident

Camp Bondsteel – Camp Bondsteel, Kosovo Without Lost-Time Incident

Children’s Hospital of Alabama – Birmingham, Alabama Since Last Lost-Time Incident

Chirag Oil – Caspian Sea (Azerbaijan) Injury/Illness-Free Project

Clinton Facilities – Houston, Texas Since Last Lost-Time Incident

Conlog Interim – Balkans (International) Since Last Injury/Illness Incident

Duke Medicine Pavilion – Durham, North Carolina Without Lost-Time Incident

DuPont – Delisle, Mississippi Without Lost-Time Incident

DuPont – LaPorte, Texas Without Recordable Incident

DuPont – Orange, Texas Without Lost-Time Incident

DuPont Kevlar – Cooper River, South Carolina Without Lost-Time Incident

Eastman Chemical – Longview, Texas Since Last Lost-Time Incident

Escravos GTL – Escravos, Nigeria Since Last Lost-Time Incident

ExxonMobil Facilities – Houston, Texas Without Lost-Time Incident

Goodyear – Pasadena, Texas Without Lost-Time Incident

International Paper – Kwidzyn, Poland Since Last Lost-Time Incident

International Paper – Svetogorsk, Russia Since Last Recordable Incident

International Paper – Valiant, Oklahoma Since Last Lost-Time Incident

JCCI O&M – Basra, Iraq Since Last Lost-Time Incident

Kashagan PMSC ROK – Kashagan, Kazakhstan Without Recordable Incident

KPC 1 Melawan Spile – Sangatta, Indonesia Without Lost-Time Incident

Progress Energy – Hamlet, North Carolina Without Lost-Time Incident

Sadara – Dhahran, Saudi Arabia Since Last Recordable Incident

Shell Const A&V SRC – Edmonton, Canada Since Last Lost-Time Incident

Shell Gasmer – Houston, Texas Without Lost-Time Incident

Shell Westhollow – Houston, Texas Since Last Lost-Time Incident

Skikda New LNG Train – Skikda, Algeria Since Last Lost-Time Incident

Solvay Chemicals – Longview, Washington Without Lost-Time Incident

Sonangol Refinery – Luanda, Angola Injury/Illness-Free Project

Syncrude ESP 25 1 Rebuild – Fort McMurray, Canada Without Lost-Time Incident

Tangguh LNG – Papua, Indonesia Since Last Lost-Time Incident

Texas Instruments – Stafford, Texas Without Lost-Time Incident

Yanbu Export Refinery – Yanbu, Saudi Arabia Without Recordable Incident

11

10

1

7

3

3

1

1

3

15

2

3

3

3

3

3

3

1

20

32

3

1

4

2

8

1

2

3

1

31

18

2

23

3

3

4

21

5

791,918

715,936

3,606,749

1,561,497

1,053,569

1,021,922

3,800,000

1,615,011

1,288,958

1,612,659

1,980,680

1,659,364

1,978,672

1,531,594

2,076,174

2,050,742

1,603,294

26,505,740

2,291,305

699,345

4,017,298

1,330,777

1,485,843

3,262,650

1,571,128

1,240,025

1,795,134

2,374,910

1,765,388

2,368,102

4,897,764

29,101,132

411,898

1,248,471

1,135,799

12,471,367

1,456,408

1,895,579

2011 – 2013 Major Safety Milestones

Above: KBR’s “7 Keys to Life” symbols represent different safety hazards

Environmental InitiativesKBR’s commitment to the environment is established in our COBC, and there are a myriad of ways that we deliver on this promise.

Environmental Management SystemThe ISO 14001 Environmental Management System, in which KBR is certified, uses internationally accepted standards to identify our impact on the environment and the actions KBR will take to minimize those impacts. For more information about the certification programs in which KBR participates, please refer to page 28.

Proud Project Portfolio According to project requirements and client expectations, KBR incorporates a variety of sustainable features into our work. From constructing buildings with features that minimize energy use to creating designs that are conscious of surrounding vegetation and wildlife, the environment is an integral consideration at our project sites. For more information about our projects, please refer to page 31.

Sustainable Operations In addition to the work that we perform on our projects, KBR leads by example by ensuring that our own operations are as sustainable and energy-efficient as possible. We constantly evaluate ways to minimize our carbon footprint and enact these initiatives when economically feasible. At KBR offices

worldwide, our efforts are centered on reducing our consumption of paper, natural gas, electricity and water. To help reduce carbon emissions from vehicle use at our corporate headquarters in Houston, Texas, KBR subsidizes a portion of our employees’ costs to use public transportation services to travel to and from work. In 2013, approximately 675 employees participated in the KBR Metro Rideshare program each month.

KBR also strives to make our office buildings safer and healthier for our employees and customers, as well as decrease our operating costs, by increasing energy efficiencies and reducing waste. We achieve this goal by working within nationally and internationally accepted green building certification systems, including LEED (Leadership in Energy & Environmental Design). For more information about these certification programs and our certified office spaces and projects, please refer to page 27.

KBR’s U.K. offices achieved the prestigious Carbon Trust Standard, having reduced more than 1,000 tons of carbon emissions.

Between 2011 and 2013, KBR’s U.S. offices recycled more than 1,950,000 pounds of paper.

Promoting Green Lifestyles at Green WeekEach year in honor of World Environment Day, KBR offices around the world host Green Week to raise awareness and explore actions for preserving our natural resources and living sustainably. This international celebration takes place in eight countries across five continents and features diverse activities ranging from lectures to community volunteer events that support environmental causes. Focus topics include themes like ecology and biodiversity, water resources, energy efficiency, waste and recycling, and carbon emissions.

Green Week activities include:

Green Week EXPO | Houston, Texas. Hundreds of employees attended this annual exposition, where they heard from environmental organizations that KBR supports, such as the Galveston Bay Foundation and Buffalo Bayou Partnership, and learned about products, services and local businesses that can help them enjoy healthier, more sustainable lives.

Cycle to Work Day | U.K., Australia and Indonesia. Employees opted out of their typical methods of transportation and traveled to work on bikes to promote the reduction of carbon emissions.

Waste Removal | Birmingham, Alabama. Employees cleaned a local lake to remove foreign waste.

Celebrating Green Technology | Singapore. A team of employees and their families visited Aerogreen Farm, which uses aeroponics technology — a method that saves up to 90 percent of water and land space — to grow vegetables.

A Green Education | New Delhi, India. This KBR office screened a documentary called Home, which discusses humans’ impact on the Earth’s environment; hosted a poster-making competition based on a “Save the Planet” theme to educate children about concepts such as deforestation, emissions and pollution; and initiated “Green Moments,” where each day employees shared their views on how individuals can contribute to the protection of our environment.* This data includes KBR’s three owned offices in Leatherhead and Greenford, U.K., and Birmingham, Alabama.

Reducing KBR’s Carbon Footprint, 2011 – 2013

230,846

34,492

309,032325,986

27,492 30,819

837,756

682,021

Greenford

Leatherhead

Birmingham (paper only)

553,360

0

200,000

400,000

600,000

800,000

1,000,000

201320122011

Total Weight of Office Waste* (Pounds)

Greenford

Leatherhead

Birmingham

0

246

808

0

281

740

0

328

835

0

200

400

600

800

1000

201320122011

Natural Gas Consumption* (tCO2e)

Greenford

Leatherhead

Birmingham

2013201220110

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

201320122011

4,588,845

2,918,308

5,433,490

4,165,421

2,242,127

3,053,036 3,064,966

2,242,127

2,920,157

Water Consumption* (Gallons)

Air

Car

Hotel

1,814

78,380

122 1,361

44,316

106 1,690

35,176

10

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

201320122011

KBR’s Global Travel Emissions (tCO2e)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

201320122011Greenford

Leatherhead

Birmingham

2,802

2,372

3,662

2,448

2,121

3,443

2,315

1,743

3,493

Electricity Consumption* (tCO2e)

0

10,000

20,000

30,000

40,000

50,000

201320122011

45,11247,886

14,330 13,648

31,854

24,185

36,904

7,143

22,531

Greenford

Leatherhead

Birmingham

Paper Consumption* (Pounds)

16 17

18 19

Data includes executive, technical and administrative (ETA) employees. Data includes executive, technical, administrative (ETA) and craft employees.

Male

Female

Unknown/Undisclosed

17%

4%

79%

Between 30 and 50 Years

50 Years or More

30 Years or Less

33%

16%

52%

Innovative Technologies KBR’s commitment to developing and investing in new technologies, as well as enhancing existing technologies, dates back to our co-founder M.W. Kellogg’s research laboratory in the 1920s. We take pride in using the most advanced technologies in our industry for our customers’ benefit, and we consistently strive to improve efficiency.

In response to today’s environmental regulatory pressures and client demands for increased efficiency, KBR delivers innovative equipment and proprietary process technologies that offer feed stock flexibility, reliability, cost savings, reduced emissions and energy consumption, and performance advantages. KBR’s efforts give our clients a competitive edge while increasing the value of their assets and helping them operate within the confines of increasingly stringent government and industry standards.

Refining. KBR’s portfolio includes high-yield solutions for heavy crude oil processing, clean fuels, and refinery upgrading and modernization, all designed to safely improve the quality and amount of yield, increase capacity and

maximize on-stream time. We offer key technologies in fluid catalytic cracking, hydroprocessing, residuum upgrading and Veba Combi-Cracking (VCC).

Hydrogen, Ammonia & Syngas. As the world’s largest ammonia licensor, KBR has licensed process designs and basic engineering packages for more than 200 synthetic gas plants built around the world in the last 60 years — half of global ammonia production. Our key technologies include KRES™ for Ammonia Plant and Refinery Hydrogen Plant Revamp, Purifier™, PURIFIERplus™ Process, KAAP™ and KAAPplus™. These technologies provide low energy consumption, safe operations and superior on-stream time.

Coal Gasification. With unpredictable global prices and supply of crude oil and natural gas, there is increasing interest in technologies that improve the utility of low-quality, lower cost and preferably domestic feed stocks. KBR’s TRIG™ technology converts low-cost, low-rank coal into high-value, clean, particulate-free synthetic gas for power generation, chemicals, fuels and a variety of other industrial applications.

Fueling the Potential of AlgaeMore than 80 percent of the world’s energy demand is for fuel — making the development of clean fuels one of the most important challenges facing our society.

In partnership with government and other corporations, KBR is supporting a project to determine the most efficient way to produce affordable, high-value fuel from algae, using sunshine, nutrient-rich wastewater and carbon dioxide. KBR provided engineering services for the design of a pilot plant, the Solar Biofuels Research Centre (SBRC), in Queensland, Australia. The SBRC will identify the most efficient, cost-effective and environmentally friendly way to grow algae and produce biofuels.

Because algae has the added benefit of cleaning wastewater, biofuel technology also has exciting possibilities for waste recycling and wastewater treatment or clean-up in both developed and developing countries. Other potentially valuable products derived from algae include vaccines and pharmaceuticals.

Olefins. KBR’s state-of-the-art catalytic olefins technologies help clients boost propylene production and increase capacity without impacting the environment. Our SCORE™ steam cracking technology provides the highest olefins yields available in the industry, using a low-capital, high-efficiency product recovery system.

Chemicals. KBR has provided process technology, equipment and services for the production of specialty and intermediate chemicals on more than 700 projects. Our key technologies include NExOCTANE™, a flexible solution that allows

blenders to convert isobutylene to high-quality iso-octene/iso-octane, and Phenol capabilities to reduce emissions, maximize on-stream time and lower production costs.

Above, Top Left: Christies Beach, Australia / Above, Bottom Left: Shell Scotford Upgrader, Canada / Above Right: TRIG™ Gasifier Pilot Plant, Alabama

From 2011 to 2013, KBR’s total spend with diverse suppliers was $100,820,833.

Occupation Types, 2013Employees by Country/Region, 2013

Workforce Diversity by Gender, 2013 Workforce Diversity by Age, 2013

Executive, Technical or Administrative (ETA)

Craft

38%

62%

Americas

Europe

Australia

Middle EastAsia

62%12%

8%

12%

5%

2%

Africa

KBR continues to bring to market new technologies that improve our clients’ profitability by maximizing conversion and energy efficiencies in a sustainable manner. We actively pursue partnerships and licensing technologies that enhance our ability to provide the best available solutions. We help our customers meet the challenges posed by the evolving environmental and market condition, and in response to changing regulatory pressures.

Alternative Energy SourcesAs the world looks for new, cleaner sources of energy, KBR is at the forefront. We believe that the global drive to reduce carbon emissions provides significant, long-term growth opportunities for our business. We invest in research and development proj-ects, and partner with governments and other corporations around the world, to identify viable sources of clean energy — and be part of the effort to create a sustainable future.

Already an established participant in the offshore and onshore wind farm industry, KBR is involved with projects to produce biofuels, or the processing of high-quality liquid fuel from living organisms or their byproducts. We are also engaged in engineering, procuring and constructing of renewable energy facilities such as waste-to-energy, which produces electricity and heat from the incineration of waste. This process is also a safe, technologically advanced method for waste disposal.

KBR is excited about the widespread future potential for these processes and continues to embrace our role in enhancing the viability of new energy sources.

The KBR Workforce KBR is proud of the diverse team that we have cultivated, with each valued member bringing a unique perspective and background to his or her role. Countries from every corner of the globe and a variety of age groups are represented within our workforce, and we offer abundant opportunities for both craft positions and executive, technical or administrative roles — anywhere in the world, on projects of international importance, within a broad range of industries.

At KBR, the hiring of diverse suppliers (including minority- and women-owned enterprises) and local or indigenous workers at our project sites continues to be a priority, as is the recruitment of women into the science, technology, engineering and math fields, where they are typically underrepresented. In recognition of the integrity, discipline, global perspective, teamwork, proven leadership and other important skills they contribute to the workplace, KBR is also proud to support and encourage the employment of military veterans.

Employee EngagementIn 2013, KBR distributed a survey to employees company-wide to determine what our people think of the company’s direc-tion. We are pleased to report that 60 percent of employees participated — a record number at KBR. Of the respondents, 82 percent think their colleagues are committed to KBR and 89 percent say their work gives them a sense of personal accom-plishment. Employees also give KBR high marks in teamwork, safety, diversity and offering a positive work environment.

By consistently soliciting our employees’ feedback, KBR ensures that we provide an open environment that encourages the best, most innovative work possible — and a place where our employees are proud to stay and develop their careers.

Employee Development and Well-BeingKBR values the contributions that each team member brings to our organization. None of the work that we perform would be possible without the dedication, talent, knowledge and skills of our thousands of employees around the world. Every day, our employees produce fresh ideas and innovative work that help KBR maintain our outstanding reputation across a variety of industries. And we believe in rewarding our employees for a job well done, from a competitive compensation and benefits package to standing firm on our value to take care of our peo-ple, through our commitment to integrity, health and safety.

KBR “Total Rewards” Employee Benefits:• Health insurance• Retirement savings plans• Income protection (short- and long-term disability)• Access to diverse continuing education and career

development opportunities• Health and wellness programs

Continuing Education and TrainingKBR UniversityWith KBR University (KBRU), employees around the world have access to a wealth of information and training designed to develop the knowledge and skills necessary for our employees to excel in their careers. Accessible from an online employee communications portal, we offer a variety of flexible, cost- effective e-learning options, from workshops and webinars to self-paced learning modules and e-books — within a range of topics and career disciplines. KBR’s success depends upon our support of a diverse workforce that is continuously learning and growing.

20 21Education Assistance ProgramIt is KBR’s intent that every employee realizes his or her full potential in an environment that values productivity and results. Beyond on-the-job training, we are pleased to help support employees in their efforts to develop skills that will enhance their performance and expand their opportunities for career advancement at KBR. All eligible employees may apply for financial support to complete formal education, at a KBR-approved or accredited institution, in an area of study that is relevant to their position.

Professional Development and VolunteerismIMPACTEstablished in 2001, IMPACT is an international network of developing KBR professionals. Any employee with seven or fewer years of experience — in any industry affiliated with KBR — is eligible to join. Its more than 1,500 members work diligently to create opportunities for personal and professional development, including informational, training, mentoring and networking events, as well as project site visits and team-building activities.

This organization flourishes in 10 countries across six continents: the U.S., U.K., Australia, South Africa, India, Indonesia, Singapore, Mexico, Angola and China. New IMPACT chapters are launching in Russia and Poland.

Primarily intended to motivate, retain and develop professionals who are just entering the workforce, IMPACT also exposes members to diverse leadership and volunteer opportunities with organizations that KBR supports. As a powerful force for positive action around the world, IMPACT

members participate in a variety of charitable and fundraising activities. Each year, two of IMPACT’s largest responsibilities are planning and hosting KBR’s Charity Golf Tournament (page 24) and Green Week (page 17).

The IMPACT Mentor Program connects upper-level KBR employees with IMPACT members as part of a long-term career development opportunity. Through a combination of educational, training and networking events, mentors’ experience and knowledge are shared with future KBR leaders. Mentors also assist mentees in establishing career goals.

Discover Engineering Committee For many children and teenagers, the spark of excitement about a possible career path originated with their interaction with a KBR employee.

KBR invests in the future through our Discovering Engineering Committee (DEC). The KBR-DEC is a volunteer organization that gives our engineers the opportunity to promote and generate enthusiasm for science, technology, engineering and math (STEM) careers. Through a variety of educational initiatives that include classroom visits, workshops, mentor programs and science fair judging, we aim to reach bright young students with the potential to be among future generations of KBR innovators — including low- income children and groups that are traditionally underrepre-sented in STEM careers, such as females and minorities. One of the KBR-DEC’s major annual events is Engineering Week, during which KBR hosts students from local schools at our offices and exposes them to a day of engineering education.

Employee Health and Wellness Wellness ProgramThe most successful and productive employees are usually the healthiest. Out of awareness for the many stressors and obligations that exist in our employees’ lives, the valuable contributions our dedicated employees make to our company and the challenges involved in maintaining wellness with so many competing demands in today’s world, KBR makes the

Based on independent employee reviews, job website CareerBliss ranked KBR the No. 4 Happiest Company in the U.S.

Between 2011 and 2013, 66,027 employees completed KBRU courses.

Employees dedicated 501,228 hours to KBRU courses, leadership development and classroom training.

Between 2011 and 2013, 586 employees acquired higher education or training through the Education Assistance Program.

KBR spent $1,721,690 on employees’ education.

Mission to MarsThey may still be in high school, but the students at Booker T. Washington High School in Houston, Texas, and the Ormiston Victory Academy in Norwich, England, are charting the course for a mission on Mars.

These students are part of a transatlantic partnership to design and plan every aspect of interplanetary living on a Mars base, from determining environmental conditions to constructing living facilities and work spaces. In addition to gaining an important, real-world introduction to the engineering field, these students are learning to work with remote project teams that offer a different perspective — a common scenario in today’s globally connected workplaces.

And KBR is the link that brought these students together. This program is part of the KBR-DEC’s global initiative to engage and mentor students in science and engineering projects, in collaboration with industry.

27,311Global employees

Above: Students in Texas communicate with students in England via Skype

health of our employees a top priority. Through our many health-focused programs, we want to show our employees that we care and want to retain them as valued, long-term team members. At KBR, we put our people first.

Destination: You. This program requires participants to wear a wireless activity tracker that counts the number of steps taken, distances walked and calories burned as they move around, exercise and perform daily tasks. Participants may view their progress from a personal webpage. The goal is for each participant to reach 1 million steps, which 1,458 employ-ees achieved between 2011 and 2013. Since the program’s inception, more than 1.4 billion steps have been taken.

Health Screenings. Between 2011 and 2013, 6,006 employees across the U.S., U.K. and Australia participated in free on-site health screenings. These screenings include a blood pressure, body fat and body mass index measurement; a cholesterol test (glucose, HDL/LDL and triglycerides) and a waist- circumference measurement. At the screening, participants may discuss their test results and options for improving their health with a health coach. As a result of this successful program, the numbers of high-risk cases for glucose and cholesterol levels, blood pressure and body fat percentage are steadily decreasing each year.

Flu Shots. Between 2011 and 2013, 5,124 employees received free flu shots at seven KBR offices throughout the U.S. We also provided flu shot vouchers for use at local pharmacies to 1,075 employees who work at locations where it is not feasible to provide on-site flu shots.

Healthy Steps. This points-based program rewards U.S. employees financially for taking specific measures to protect and improve their health. From attending a KBR on-site health screening or an annual physical with their personal physician, to completing 1 million steps through the Destination: You program, attending wellness coaching and receiving a dental exam, cancer screening and flu shot, employees have the opportunity to rack up points for each activity and receive a Healthy Reward — payable directly to each employee as an add-on to their regular paycheck. Between 2011 and 2013, 8,792 employees received a Healthy Reward.

In addition to these wellness programs, KBR offers other ini-tiatives to help employees stay healthy, including on-site health fairs, coaching for lifestyle and chronic conditions, on-site chair massages and discounts for fitness facilities, weight-loss programs and retailers that offer healthy food options.

Employee Assistance Program Since 1980, KBR’s Employee Assistance Program (EAP) has confidentially helped U.S. employees and their dependents resolve personal or work-related difficulties, such as stress or anxiety, job-related concerns, child-rearing, alcohol or sub-stance abuse, elder care, family relations, financial concerns and grief. EAP counselors, who are all licensed mental health professionals, help develop comprehensive assessments of problems and identify resources and courses of action. EAP

counselors are available by phone or in-person, and all services they provide directly are free.

Additionally, EAP counselors routinely consult with managers on issues that include workplace crisis intervention, high-ly critical employee interventions and individual employee performance problems, as well as provide supervisory training on a variety of topics involving change, human relations and communications, and stress management.

In the U.K., KBR works with an external firm to provide comparable services for our employees.

This program helps KBR develop and retain an outstanding workforce that is ready to serve our customers in the most professional and able manner possible, and it positively contributes to our financial success.

Dispute Resolution ProgramKBR’s Dispute Resolution Program (DRP) is available for U.S. employees who experience a work-related problem that they are unable to resolve on their own, or for managers who are responsible for handling or responding to employee concerns and would like assistance. The Ombudsman’s Office of the DRP is a confidential, neutral and informal place for KBR employees to discuss their issue “off the record” with a resolution professional.

DRP professionals provide internal and external options to help employees resolve issues that include the hiring process, termination, compensation, conflicts with co-workers or supervisors, policies and procedures, performance reviews and promotions. Staff members are available 24/7 for emergencies.

Corporate Giving and VolunteerismService is a value at KBR. We believe it is our obligation to add value to communities beyond the professional services we provide in the areas where we live, work and do business. Not only does community service generate goodwill and directly assist local populations in need, but above all, leveraging our company’s success to benefit the world around us is the right thing to do.

With a focus on organizations and causes that improve health, education and the environment, KBR contributed more than $7.4 million to charities between 2011 and 2013. Additionally, our company sponsored or participated in a variety of com-munity events and fundraisers.

KBR recognizes and is grateful for the outstanding generosity of our employees, who collectively contributed more than $2.6 million and approximately 70,000 volunteer hours to charitable causes between 2011 and 2013. As active donors and volunteers, our employees are our strongest brand ambassadors and provide a “heart and soul” connection between KBR and communities around the world.

KBR VolunteersWhenever KBR fulfills a need in the community, we deploy an official team of volunteers.

Our rich tradition of corporate volunteerism dates back to 1985, when our legacy company Brown & Root created the first corporate volunteer council in Houston, Texas, called the Brownbuilders Volunteer Council. Today, that same spirit of generosity still thrives at KBR’s global offices and within our two established Volunteer Councils in Houston, Texas, and Birmingham, Alabama — known as “KBR Volunteers.” In addition to these established councils, employee volun-teerism occurs worldwide, from the U.K. and Australia, to Singapore, Canada, Mexico and many other countries.

KBR employees volunteer at nonprof-it organizations and events that our company supports — a broad variety of exciting opportunities that enable networking, leadership development and expanded capabilities to positively impact communities.

Volunteer ChallengeTo encourage more employees to engage in community service and allow them to pursue their own volunteer experience, KBR initiated the Volunteer Challenge in 2012. Each quarter, employees from the Americas, Europe/Africa and Asia/Pacific regions compete to earn the highest amount of volunteer hours while serving at the charity of their choice. Using KBR’s online Volunteer Tracking Tool, employees report their time spent performing volunteer work.

KBR selects one individual and one team from each region as the quarterly winners. As their prize, KBR donates $500 to their selected charity. The Volunteer Challenge has so far benefit-ed many organizations, including the American Heart Association, National Multiple Sclerosis Society, British Red Cross, Habitat for Humanity, SPCA, Project C.U.R.E., Cub Scouts and the Fred Hollows Foundation.

22 23Between 2011 and 2013, KBR employees volunteered approximately 70,000 hours.

Event Funds Raised

March of Dimes BP MS 150 MS Walk Junior Achievement Susan G. Komen Foundation Race for the Cure

Total

KBR’s Top 5 Fundraising Beneficiaries, 2011 – 2013

Country Funds Raised

US $2,549,618 (95%)UK $98,183 (4%)Australia $30,097 (1%)

Total $2,677,898

Employee Charitable Giving, 2011 – 2013

KBR Wins Corporation of the Year for Blood Donations For patients in need, a safe supply of blood may be the difference between life and death. For every person who donates blood, up to three lives can be saved. At KBR, our employees consistently demonstrate how selfless and giving we can be.

$341,444$332,181$177,571$134,052

$37,480

$1,022,728

U.S./Canada Funds Raised

Health Education Environment

Total

$1,026,775 $1,317,894$664,936

$3,009,605 (40%)

Asia/Pacific Funds Raised

HealthEducation Environment

Total

Europe/Africa Funds Raised

Health Education Environment

Total

Other (Matching, Combined Regional Areas) $3,898,166 (52%)

Cumulative Total $7,489,762

KBR Charitable Giving, 2011 – 2013

$7,031$106,614$52,305

$165,950 (2%)

$110,172$303,629

$2,240

$416,041 (6%)

KBR Blood Drives, 2011 – 2013

51 blood drives2,288 volunteers/donors2,694 blood products donated8,106 lives potentially saved

Teeing Up the Green for CharityEach year, KBR’s Charity Golf Tournament supports the communities we serve and raises awareness about sustainability and our company’s worldwide efforts to reduce our environmental impact. The tournament is our showcase event for charitable giving, while promoting and encouraging environmental stewardship. Since the tournament’s inception in 2007, KBR has raised more than $2 million for 34 charities that align with our mission of improving health, education and environment.

Tournament Charitable Giving, 2007 – 2013

$171,000

$233,250 $220,000

$315,000$330,000

$416,000 $413,000

0

$100,000

$200,000

$300,000

$400,000

$500,000

200920082007 2012 201320112010

Total $2,098,250

Health $763,950

Education $758,650

Environment $455,650

Other/Disaster $120,000

36%

36%

22%

6%

KBR Goes to the Head of the ClassIn school, students learn fundamental skills in math, reading, science, history and other topics. But many students reach adulthood without knowing how to make informed career choices, interview for a job, create a budget or balance a checkbook. That’s where Junior Achievement (JA) comes in — bridging the gap between the academic lessons students receive in school and the practical skills needed for success.

JA relies on volunteer teachers from area businesses to educate students from elementary school to high school about topics ranging from personal finance to business principles and entrepreneurship. Since the mid-1980s, KBR’s volunteer teachers have positively impacted thousands of students and contributed to many successful outcomes.

24 25

For more stories about how KBR is positively impacting communities around the world, visit www.kbr.com/Social-Responsibility/Community

Above Left: Charity representatives pose with their checks / Above Right: KBR executives, vendors and suppliers play in the tournament

Above, Top Left: KBR walkers at the March of Dimes / Above, Top Right: KBR volunteers build a home for Habitat for Humanity / Above, Center Left: KBR volunteers at KBR Kids Day on Buffalo Bayou / Above, Bottom Left: KBR employees clean trash from Qatar beaches / Above, Right: KBR employees plant trees

Above: KBR employee teaches a class for Junior Achievement