october 2016 investor update

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  • A World of Solutions

    CB&I Investor PresentationOctober 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.

  • A World of Solutions 3

    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

  • A World of Solutions 4

    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

  • A World of Solutions 5

    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

  • A World of Solutions 6

    Experience and Global ReachCompetitive Advantage: Experience and Global Reach

  • A World of Solutions 7

    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

  • A World of Solutions 8

    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:

    Subcontracted labor, with little continuity from one project to the next

    Reliance upon a variety of other subcontractors, which can create issues with

    quality and schedule conformance / flexibility

    Variable approaches to risk management and screening

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

  • A World of Solutions 9

    Competitive Advantage: Complete Supply Chain Solution

  • A World of Solutions 10

    Competitive Advantage: Diversified Across Energy Infrastructure

  • A World of Solutions 11

    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

  • A World of Solutions 12

    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

  • A World of Solutions 13

    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

  • A World of Solutions 14

    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

  • A World of Solutions 15

    Differentiation

    Most comprehensive provider of products and services

    Global footprint through CB&Is 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

  • A World of Solutions 16

    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

  • A World of Solutions 17

    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

  • A World of Solutions 18

    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

  • A World of Solutions 19