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.
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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
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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
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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
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Experience and Global ReachCompetitive Advantage: Experience and Global Reach
50+ years
75+ years
125+ years 70+ years
100+ years
75+ years
70+ years
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Backlog Profile
Note: Fixed-Price contract type includes: Fixed-Price, Hybrid and Unit Based contracts
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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
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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
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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
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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
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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)
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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
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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
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