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MICHAEL BAKER CORPORATION
Investor Relations Update
June 12, 2002
Engineering & Energy
Engineering & EnergySafe HarborSafe Harbor
This presentation will contain information related to events which may occur in the future. These forward-looking statements may include future business trends,
revenue and earnings forecasts, changes in management and acquisition and corporate finance activity. These statements are subject to market,
regulatory, operating and other risks and uncertainties and, as a result, actual results may vary. Such
forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
This presentation will contain information related to events which may occur in the future. These forward-looking statements may include future business trends,
revenue and earnings forecasts, changes in management and acquisition and corporate finance activity. These statements are subject to market,
regulatory, operating and other risks and uncertainties and, as a result, actual results may vary. Such
forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
Engineering & EnergySummarySummary
Q1 Earnings in Line with Revised Expectations
Rising Insurance Costs Impacting Results
On-Track to Achieve Year-end Estimates Revenue: $430 - $440 million
EPS: $1.40 - $1.45
No Significant Change in Litigation Environment
Changes in Energy Management
Q1 Earnings in Line with Revised Expectations
Rising Insurance Costs Impacting Results
On-Track to Achieve Year-end Estimates Revenue: $430 - $440 million
EPS: $1.40 - $1.45
No Significant Change in Litigation Environment
Changes in Energy Management
Engineering & EnergyFour-Point StrategyFour-Point Strategy
Maximize the growth potential of the Energy business
Optimize the overall performance of the Engineering business
Innovate by investing to enhance service delivery methods
Leverage the relationships and skills of the entire company
Maximize the growth potential of the Energy business
Optimize the overall performance of the Engineering business
Innovate by investing to enhance service delivery methods
Leverage the relationships and skills of the entire company
Engineering & EnergyDifferentiation of ServicesDifferentiation of Services
Energy OPCOSM
Integrated Services and Solutions for Global O&G Upstream Production Operations
Competency-Based Training and Nationalization Programs
Energy OPCOSM
Integrated Services and Solutions for Global O&G Upstream Production Operations
Competency-Based Training and Nationalization Programs
Engineering & EnergyEnergyEnergy
Huber OPCOSM Contract in GOM Burlington & El Paso Divestiture Programs
Delayed Other OPCO Opportunities Pending Ops Engineering Business Expanding International Business in Transition;
Realignment Underway
Huber OPCOSM Contract in GOM Burlington & El Paso Divestiture Programs
Delayed Other OPCO Opportunities Pending Ops Engineering Business Expanding International Business in Transition;
Realignment Underway
Engineering & EnergyEnergyEnergy
Management Changes Don Fusilli: Acting President Realigned International Management
Operations Business Development
Search Firm Retained
Management Changes Don Fusilli: Acting President Realigned International Management
Operations Business Development
Search Firm Retained
Engineering & EnergyThe Energy Value StepsThe Energy Value Steps
Ops. Eng.
Training
Contract Labor
OPCO
Supply Chain Management
Total Asset Management
VA
LU
E
TIME
Engineering & EnergyCore Engineering Service OfferingsCore Engineering Service Offerings
Transportation Engineering Services Highways Bridges (Structures) Program Management Asset Management
Civil InfrastructureServices
DoD / Federal Markets Water/Wastewater Cold Region Pipelines Asset Management
Transportation Engineering Services Highways Bridges (Structures) Program Management Asset Management
Civil InfrastructureServices
DoD / Federal Markets Water/Wastewater Cold Region Pipelines Asset Management
Engineering & EnergyEngineeringEngineering
Delayed/Deferred Projects Getting Underway Transportation Budget Constraints Continue
Federal Virginia Texas
Other Areas Showing Growth Department of Defense Federal Civilian Emergency Management Homeland Security Water/Wastewater
Delayed/Deferred Projects Getting Underway Transportation Budget Constraints Continue
Federal Virginia Texas
Other Areas Showing Growth Department of Defense Federal Civilian Emergency Management Homeland Security Water/Wastewater
Engineering & EnergyTotal RevenuesTotal Revenues
$390.7$403.2
$506.0
$401.8
$348.7
$281.9
$0
$100
$200
$300
$400
$500
$600
1999 2000 2001 2002 Est.
Do
lla
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Total Reported Revenues Engineering Energy
$430-$440m
Engineering & Energy Operating Performance(in Thousands of $)
Operating Performance(in Thousands of $)
Adjusted for $1 Million Non-Recurring ChargeAdjusted for $1 Million Non-Recurring Charge
1999 2000 2001TOTAL CONTRACT REVENUES
Total Reported $506,012 $390,710 $403,222
Less Non-Core 223,236 41,625 1,372
ENERGY 80,158 120,708 158,236
ENGINEERING 202,618 228,377 243,614
Total Core 282,776 349,085 401,850
TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums)
Total Reported (511) 17,543 31,436
% -.1% 4.5% 7.8%
ENERGY 4,252 9,759 12,842
% 6.6% 8.1% 8.1%
ENGINEERING 12,544 16,007 18,582
% 6.2% 7.0% 7.6%
Total Core $17,796 $25,766 $31,424
% 6.4% 7.4% 7.8%
Engineering & EnergyQ1/Q1 RevenuesQ1/Q1 Revenues
$108.3$95.9$95.0
$83.3
$94.5 $95.9
$0
$25
$50
$75
$100
$125
$150
2000 2001 2002
Do
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Total Reported Revenues Engineering Energy
Q1/Q1 Total Reported/Engineering/Energy RevenuesQ1/Q1 Total Reported/Engineering/Energy Revenues
$37.6
$58.3
$25.6
$57.7
$37.5
$57.0
Engineering & Energy Operating Performance – Q1/Q1(in Thousands of $)
Operating Performance – Q1/Q1(in Thousands of $)
Adjusted for $1 Million Non-Recurring ChargeAdjusted for $1 Million Non-Recurring Charge
2000 2001 2002TOTAL CONTRACT REVENUES
Total Reported $108,295 $94,950 $95,922
Less Non-Core 25,016 456 -
ENERGY 25,567 37,477 37,578
ENGINEERING 57,712 57,017 58,344
Total Core 83,279 94,494 95,922
TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums)
Total Reported 5,563 6,536 5,602
% 5.1% 6.9% 5.8%
ENERGY 1,496 2,768 1,680
% 5.9% 7.4% 4.5%
ENGINEERING 3,722 3,596 4,233
% 6.4% 6.3% 7.3%
Total Core $5,218 $6,364 $5,913
% 6.3% 6.7% 6.2%
Engineering & Energy Balance Sheet(in millions of $)
Balance Sheet(in millions of $)
1999 2000 2001ASSETS
Cash $3.7 $9.1 $18.5Short-Term Investment - 9.0 -A/R 77.4 67.7 67.6Cost in Excess of Billing 26.6 20.5 25.3
PPE 17.1 10.1 10.3Intangibles 14.6 10.8 9.8Other 15.6 10.2 20.1
$155.0 $137.4 $151.6LIABILITIES
Current Portion LTD 3.5 2.2 -Trade A/P 28.9 25.7 21.9Accrued Other 62.9 59.1 68.2
Long-Term Debt 14.9 0.1 -
Owners’ Equity 44.8 50.3 61.5$155.0 $137.4 $151.6
Engineering & Energy EPS GrowthEPS Growth
2000 2001 2002 Est.Reported
EPS $.65 $1.33 $1.40 - $1.45
Pro Forma EPSCore Operating Income 25,766 31,424Less Corporate Overhead (7,715) (11,058)Operating Income 18,051 20,366
Provisions for Income Tax (47% for 1999, 51% for 2001 and 45.5% for 2001) (9,206) (9,267)
8,845 11,099
Pro Forma EPS $1.07 $1.32 $1.40 - $1.45
Engineering & EnergyStock Performance (24 mos.)Stock Performance (24 mos.)
$6.50
$15.00
$15.48
$14.90$14.25$14.00
$15.00$15.20
$13.60$13.38
$12.26$12.70
$6.69
$7.13
$7.75$8.06
$8.13
$7.75
$13.85 $14.00
$8.30
$8.93 $10.00
$11.55
$8.25
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Clo
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Engineering & EnergyFinancial HighlightsFinancial Highlights
Debt-free, Leveragable Balance Sheet
Eliminated Series B Super Voting Shares
Secured $40 Million Credit Facility
Added 7 New Institutional Holders 1.3 Million Shares
Debt-free, Leveragable Balance Sheet
Eliminated Series B Super Voting Shares
Secured $40 Million Credit Facility
Added 7 New Institutional Holders 1.3 Million Shares
MICHAEL BAKER CORPORATION
Investor Relations Update
Engineering & Energy
