Cb&i november 2016 investor update

A World of Solutions

CB&I Investor PresentationNovember 2016

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, 2015, 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.


Overview

Leading provider of technology and infrastructure for the energy industry

Market Cap of ~$2.9 Billion (October 2016)

$20 Billion Backlog (September 30, 2016)

More than 40,000 employees worldwide

125 years of experience and expertise in reliable solutions

Relentless focus on safety: 0.02 LTIR for the first nine months of 2016


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


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


Experience and Global ReachCompetitive Advantage: Experience and Global Reach


Backlog Profile

U.S.80%

Other20%

By Geography

Fixed-Price70%

Cost-Reimbursable30%

By Contract Type

Engineering & Construction

$11,070 56%

Capital Services$5,451

27%

Fabrication Services$2,309

12%

Technology$941 5%

By Operating Group

Source: 2016-Q3 CB&I Financial ResultsNote: Fixed-Price contract type includes: Fixed-Price, Hybrid and Unit Based contracts


Competitive Advantage: 70% Fixed-Price Backlog

Lower Risk

CB&I Fixed-Price Approach

Direct control of critical-path elements of

project:

Direct-hire labor, with continuity from one

project to the next

Vertically integrated supply chain

Disciplined risk management process in

screening prospective work

Elevated Risk

Traditional Fixed-Price Approach

Indirect control of critical-path elements of

project:

Х Subcontracted labor, with little continuity

from one project to the next

Х Reliance upon a variety of other

subcontractors, which can create issues with

quality and schedule conformance / flexibility

Х Variable approaches to risk management

and screening

Note: Fixed-Price contract type includes: Fixed-Price, Hybrid and Unit Based contracts


Competitive Advantage: Complete Supply Chain Solution


Competitive Advantage: Diversified Across Energy Infrastructure


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


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


LNG Supply and Demand

0

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

LNG

Vo

lum

e (m

mtp

a)Long Term Demand Growth Expected to Continue

Operating Plants Sanctioned Demand

Sources: BP, ShellAssumptions: 4.5 mmtpa average train size

~8-10 additional trains


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


Differentiation

Most comprehensive provider of products and services

Global footprint through CB&I’s network

Standardized processes, systems and tools

Experience and expertise to reduce customer OpEx

Capital Services Group Overview

Strategic Benefit

Diversification

Integrated offerings

Long-term customer relationships

Stable revenues and earnings

Capabilities

Operations & Maintenance

Environmental Services

Program Management


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

• Target S&A expense at 3% of revenue

Drive shareholder returns through:

Capital Allocation

• Organic and strategic growth opportunities

• Share repurchases

• Dividends

Drive valuation through:

Financial Performance

• Generate operating cash Flows ≥ net income

• Reduce total debt

• Strategic tax planning


Selected Strategy Metrics

Target

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2016 Q1 2016 Q2 YTD 2016 Q3 YTD 2016 Guidance Midpoint

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%Target S&A Expense at 3.0% of Revenue

Revenue S&A Expense % of Revenue

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

106.0

108.0

110.0

YE 2012 YE 2013 YE 2014 YE 2015 Q3 2016 TargetLevel

Shares Outstanding

22.0%

22.5%

23.0%

23.5%

24.0%

24.5%

25.0%

25.5%

26.0%

26.5%

27.0%

27.5%

2016 Q1 2016 Q2 YTD 2016 Q3 YTD

Tax Rate


2016 Guidance Drivers

Revenue Guidance

$10.6-$11.0 Billion

Over 75% of 2016 revenue guidance in backlog at the end of 2015

EPS Guidance

$4.70-$5.00

Ramp-up in Gulf Coast projects

Improvement in equity earnings, tax benefits and lower non-controlling interest

Includes expected one-time Q4 tax benefit of $0.35 per share

Operating Cash Flow Guidance

At or above net income


Investor Relations

Cb&i november 2016 investor update