D.A. Davidson 11th Annual Engineering and Construction Conference

September 11, 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: June 30, 2012 - $15.2 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 Mobile

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 & PaperIndustrial Manufacturing

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

2Q12 Review - KBR

Revenue, excluding LogCAP, up 2% year-over-year

Job income margins of 13.1% compared to 12.3% year-over-year

Backlog of $15.2 billion compared to $12.0 billion year-over-year

FY12 earnings per diluted share guidance in $2.60 to $2.80 range from previous range of $2.45 to $2.80

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Note: All statements reflected on this slide are as of KBR’s 2Q12 earnings conference call on July 26, 2012

Operating Highlights

Continued strength in operating performance

Strong project execution

Robust pipeline of project opportunities – currently involved in 19 Hydrocarbon studies, pre-FEEDs and FEEDs, each with significant contract dollar potential for KBR

Maintaining focus on corporate cost controls and support function execution

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Hydrocarbons – Gas Monetization and Oil & GasCurrent Gas Mon Projects Progressing

Gorgon LNG Trains 1-3Skikda LNGEscravos GTLIchthys LNG EPC

Good Investment of LNG pre-FEEDs and FEEDs

Gorgon Train 4 Pre-FEED with expected FEED transitionBrowse EPC bids submittedMozambique FEED tenders submittedKitimat open book tendering processPluto Expansion TrainsU.S. Gulf Coast pre-FEED with FEED option2 additional global pre-FEEDs (TBA)

Opportunities in GTL in the U.S.

Expanding Share of Wallet for Oil & GasPursuing EPC projects

SARB projectZADCO projectShah Deniz project

FLNG OpportunitiesFLNG Studies for Hoegh LNG

AustraliaIsrael

GDF SUEZ Bonaparte

Oil & Gas GeographicallyFEED award for FPSO topsides and hull in AngolaActivity recovering in U.S. Gulf of MexicoCaspian RegionNorth SeaAustraliaBrazil (GVA)

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Hydrocarbons – Downstream and TechnologyU.S. Shale Gas Opportunities

Awarded design, construction and technology for ethylene furnace for INEOSTracking 12 different ammonia projects in U.S.

Middle East Remains Robust for Downstream

KBR-AMCDE joint ventureSadara Petrochemical Complex PMCJazan Refinery

FEED substantially completeEPC packages out for bidKBR awarded FEED for Gasifier unit

Ethylene Project in UzbekistanRecently awarded ~ $120 million technology and EPC support contractUtilizes KBR’s SCORE™ technologyProvide detailed engineering and design and in-country construction support

Growth in TechnologyContinue to see strong bookings and significant revenue and job income growth

Technology Making Inroads in China & India

Doubled headcounts in offices during 2011Beijing, ChinaDelhi, India

Strong suite of technologiesAdvanced Catalytic Olefins (ACO™)Veba Combi-Cracker (VCC)Transport Gasifier (TRIG™)Selective Cracking Optimum Recovery (SCORE™)Ammonia Technology (Purifier™)Residuum Oil Supercritical Extraction (ROSE®)

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ServicesCanada Operations

Strong across variety of markets:Turnarounds / maintenanceModule fabricationConstruction projects in Alberta Oil SandsGas processing projects in Western CanadaClient camp support

Booked approximately $750 million in backlog in 2Q12 from:

Module fabrication workTurnaround workGas processing work

Expect continued strong bookings through 2H12

Industrial ServicesSteady and consistent performancePromising opportunities in Middle East

Building GroupStrong multi-family residential and manufacturing construction$120 million booked into backlog in 2Q12Healthcare and higher education spending remains slowExpect continued strong bookings through 2H12

U.S. ConstructionProspect list growingCurrently have approximately $3 billion in identified pursuits through end of 2013

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Infrastructure, Government & PowerNorth American Government & Logistics

Strong bids outstanding with diverse baseU.S. Army, Navy, and Air ForceArmy Corps of EngineersDepartment of StateField camp support

Awarding of projects progressing slowly

International Government, Defence & Support Services

Diversification strategy from contingency operationsNon-military clientsTraining (military & non-military)Expeditionary life support servicesBack office services Equipment facilitation

InfrastructureStable, strong market in AustraliaExpanded opportunities in Middle East market (Qatar & Saudi Arabia)More optimism in U.S.

MineralsNew management team headquartered in AustraliaSeveral early-stage studies in progress for large capital projectsCurrently working on several projects for Rio TintoGlobal mining companies examining capital expenditures

Power & IndustrialAir quality & combined cycle opportunities still strongAnticipate significant capital expenditures over next several yearsSeveral large bids outstanding expected to be awarded in next 9 months

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KBR Financials and Backlog

2Q12 Review - KBRRevenue, excluding LogCAP, up 2% year-over-year

Job income margins of 13.1% compared to 12.3% year-over-year

Effective tax rate of 14% compared to 23% year-over-year

Backlog of $15.2 billion compared to $12.0 billion year-over-year

Corporate G&A of $52 million compared to $58 million year-over-year

Cash and equivalents of $824 million compared to $712 million year-over-year

FY12 earnings per diluted share guidance in $2.60 to $2.80 range from previous range of $2.45 to $2.80

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Note: All statements reflected on this slide are as of KBR’s 2Q12 earnings conference call on July 26, 2012

Full year 2012 earnings per diluted share guidance in $2.60 to $2.80 range:

Previous earnings per diluted share guidance in $2.45 to $2.80 range

Full year G&A expense approximately $230 million (previous guidance range of $240 million and $250 million)

Full year CAPEX of approximately $80 million (previous guidance of approximately $100 million)

Estimated overall effective tax rate approximately 21% (previous guidance in mid 20%)

Share count of approximately 148 million shares outstanding

Full year LogCAP revenue between $375 million and $450 million (previous range of $300 million to $500 million)

KBR 2012 Guidance*

14*Note: All guidance comments based on KBR’s Second Quarter 2012 quarterly earnings call on July 24, 2012; unless otherwise noted

Backlog

15

80

90

100

110

120

130

140

150

160

170

180

190

200

210

220

2006 2007 2008 2009 2010 2011 6/30/2012

Perf

orm

ance

Inde

x

Revenue Backlog Job Income Backlog

Continued focus on job income backlog:

Up 38% from December 31, 2011

Up 111% since December 31, 2006

Job Income Margins Improving

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First Half 2010 First Half 2011 First Half 2012

10.8%

12.2%

12.8%

Tax Rate Improvement Over Time

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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 1H12

Tax

Perc

enta

ge

Strong Corporate G&A Cost Control

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$150

$160

$170

$180

$190

$200

$210

$220

$230

$240

2007 2008 2009 2010 2011 2012 Guidance*

Cor

pora

te G

&A

$ in

Mill

ions

ERP Spend*Note: ERP spending guidance reflective of $20-$25 million as provided in April 2012

Investment Thesis

Fundamentally strong, global growth company with diverse portfolio of businesses

Multiple platforms for acceleration of new orders across global end markets; strategically placing bets on a number of large opportunities through pre-FEEDs and FEEDs

Driving higher job income and job income margins in the P&L and backlog

Strong focus on corporate G&A cost control and tax planning

Patience, prudence and discipline in managing KBR’s businesses

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