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Investor Day 2008New York | April 22, 2008
Forward-Looking StatementsStatements contained in this presentation that are not historical facts may constitute forward-looking statements, including statements relating to future revenues and revenue growth, future earnings, future cash flows, future operating margins and other financial measures, future business trends, future tax obligations, future contractual backlog, future debt payments, future outstanding shares, future integration of the Washington Group and future economic and industry conditions. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward-looking statements by their nature involve risks and uncertainties. We caution that a variety of factors could cause the Company’s business and financial results to differ materially from those expressed or implied in the Company’s forward-looking statements. These factors include, but are not limited to: an economic downturn; changes in the Company’s book of business; the Company’s compliance with government contract procurement regulations; the Company’s leveraged position and ability to service its debt; restrictive covenants in the Company’s Credit Facility; the Company’s integration of the Washington Group International, Inc.; the Company’s ability to procure government contracts; the Company’s reliance on government appropriations; the ability of the government to unilaterally terminate the Company’s contracts; the Company’s ability to make accurate estimates and control costs; the Company’s and its partners’ ability to bid on, win, perform and renew contracts and projects; the Company’s dependence on subcontractors and suppliers; customer payment defaults; availability of bonding and insurance; environmental liabilities; liabilities for pending and future litigation; the impact of changes in regulations and laws; a decline in defense spending; industry competition; the Company’s ability to attract and retain key individuals; employee, agent and partner misconduct; risks associated with international operations; business activities in high security risk countries; third party software risks; terrorist and natural disaster risks; the Company’s relationships with its labor unions; the Company’s ability to protect its intellectual property rights; anti-takeover risks and other factors discussed more fully in the Company's Form 10-K for the year ended December 28, 2007, as well as in other reports filed from time to time with the Securities and Exchange Commission. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks onlyas of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.
Non-GAAP Financial MeasuresOur presentation includes net income and EPS guidance excluding the impact of the amortization of the intangible assets related to the Washington Group International (“WGI”) acquisition, which are financial measures not computed in accordance with generally accepted accounting principles ("GAAP"). We presented these amounts primarily to demonstrate the impact of the WGI acquisition on our projected fiscal year 2008 results as well as reflect additional financial metrics used by the investment community to measure companies in our industry. These non-GAAP measures may be useful to investors seeking to compare the expected performance of our underlying business with the actual performance of our business in prior periods. These non-GAAP measures should not be used as a substitute for financial measures prepared according to GAAP.
Investor Day 2008New York | April 22, 2008
Martin KoffelChairman & CEO
Agenda
Time Topic Presenters8:00 – 8:20 am Opening Remarks Martin Koffel8:20 – 8:55 am Federal Sector
Q&ARandy WotringDave Pethick
8:55 – 9:30 am Infrastructure SectorQ&A
Tom Bishop
9:30 – 9:45 am Break
9:45 – 10:20 am Industrial and Commercial SectorQ&A
Gary JandegianRobert Zaist
10:20 – 10:55 am Power SectorQ&A
Tom Zarges Lou Pardi
10:55 – 11:30 am Financial Review / Guidance Tom Hicks11:30 – 12:15 pm General Q&A12:15 – 1:15 pm Lunch
Positioned for Performance
• Top-tier diversified engineering, construction and technical services firm with leading positions in:
• High growth power sector, including resurgent nuclear market
• Expanding oil & gas market
• Strong U.S. DOE and rapidly emerging UK nuclear waste management markets
• Growing military outsourcing and global threat reduction markets
• Long-term, dynamic infrastructure market
• FY 2007 - achieved strong growth across all key marketsand completed landmark acquisition
• $30B book of business provides foundation for growth
• $5.4B in combined company revenues
• 56,000 employees in offices in 30 countries
• Ability to service full project life cycle across key markets
• Very well positioned to benefit from fast growing markets over the next decade, particularly power/nuclear and oil & gas
$0.1 $0.3
$ 0.0
$ 1.0
$ 2.0
$ 3.0
$ 4.0
$ 5.0
$ 6.0
$ 7.0
$ 8.0
$ 9.0
$ 10.0
1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1. Expected revenue (approximate) for FY 2008.
(Rev
enue
s, $
Bn)
Infrastructure/Public Sector
Strategically Compelling, Well Timed Acquisitions
Transportation
$0.4
Commercial / Industrial
$0.8
PM/CM, Transit, Private Sector, International
$1.4
Federal O&M
$2.2 $2.3 $2.4$3.2 $3.4
$3.5 $4.2
$5.4
Washington Group International Construction, Power, DOE
$9.8(1)
FacilityStart-up
Construction &
ConstructionManagement
Decommissioning &
Closure
Significantly Expanded Service Offering
Power Federal
Industrial & Commercial Infrastructure
TechnicalConsulting
Planning, Design &
Engineering
Operations &Maintenance
ProjectDevelopment
ProgramManagement
Acquisition Transformed Business Mix
Power Sector14%Industrial &
Commercial22%
Federal Sector40%Infrastructure
24%
2007 Revenue Mix:$5.4 billion
Acquisition Transformed Business Mix
* Based on midpoint of guidance range for sector revenues.
Federal Sector35%Infrastructure
18%
Power Sector21%
14%22%
24%40%
Expected 2008 Revenues*:$9.8 billion
Industrial &Commercial
26%
Oil & Gas9%
Federal Sector Stronger, More Diversified
• Leading DOE contractor for environmental management and closure
• Leader in chemical threat reduction
• Top Ten O&M Defense Contractor*
• Over 25 federal agency clients, including DOD and DOE
• Demand driven by reconfiguration of U.S. military, increased outsourcing, bundled, multi-service worldwide contracts
• Revenue mix balanced across separately-funded DOD and DOE work
• Less than 10% of revenues related to Middle East operations
35%
* Source: Ranking by Defense News; URS estimates
Enhanced Infrastructure Capabilities• Leading position in long-term growth markets:
• Transportation• Port and harbors• Public facilities• Water and wastewater
• Acquisition added to strong legacy infrastructure engineering business, with expanded construction and O&M capabilities
• Ability to manage through entire project life-cycle, extend duration of services and revenue with existing client base
• Growing demand to rebuild/upgrade vital but aging infrastructure
• Competitive advantages• National delivery system• Long-term client relationships with state and local agencies• Unparalleled experience in project development• Breadth of services
• Planning, Design, and PM/CM• Design-Build• Design-Build-Operate-Maintain
18%
Industrial and Commercial: Complete Range of Services Is Our Competitive Edge
• Major end-markets• Oil & Gas• Mining• Industrial, manufacturing, chemicals
• Clients want fully integrated engineering solutions
• Relationship-based Master Service Agreements with nearly half of Fortune 500
• Demand driven by energy exploration, facility expansion, strong demand for metals and minerals
• URS provides full scope of project delivery
• Engineering• Procurement• Construction• Operations & Maintenance• Contract Mining
26%
Leading Position In Power Sector
• One of the largest EPC companies in the U.S. power market• One of only two steam generator placement contractors for U.S.
nuclear plants• A leading provider of U.S. FGD retrofits in last ten years• Demand driven by need for power generation, emissions regulations
21%
Every Major Nuclear or Fossil Technology
Every Region of The World
Every Segment ofThe Life CycleLatin America
20,600 MW
North America184,100 MW
Europe8,000 MW
Middle East/Africa2,400 MW
Asia/Pacific37,000 MW
Designed and / or Constructed 250,000 MW WorldwideDesigned and / or Constructed 250,000 MW Worldwide
Long-term Revenue Growth Potential
1 2 3 4 5 6 7 8 9 10
Federal
Infrastructure
Industrial & Commercial
Power
GROWTH UPSIDE
STRONG BASE
Year
TOTAL MARKET GROWTH OPPORTUNITY10%-12%
$30 Billion Book of Business Drives Revenue and Earnings Growth
0
3
6
9
12
15
18
21
24
27
30
33
FY 2004 FY 2005 FY 2006 FY 2007
IDCs DesignationsOption Years
$12.4B$10.1B
$11.5B
$30B
$2.5B
$5.7B
$3.1B
$18.7B($ B
illion
)
Backlog
Investor Day 2008New York | April 22, 2008
Federal Sector Overview / DOD and Related Business
Randy WotringPresident, EG&G Division
David Pethick President, Energy & Environment Business Unit
Washington Division
Leading Federal Sector Business
• Client relationships with over 25 agencies, including DOD (all military branches), DOE, NASA, DHS and others
• Leading DOE environmental management contractor
• Demand driven by multi-service bundled worldwide contracts, reconfiguration of U.S. military, increased outsourcing
DOD
35%
• Installations and logistics management
• Flight services and training
• Global threat reduction
• Critical infrastructure
• Mission support
DOE• Site management and
operations
• EPC and operations for complex, high hazard facilities
• Hazardous and nuclear waste management
• Risk, safety, threat analysis
More Diversified Revenue Mix
Estimated Mix of 2008 Federal Sector Revenues: $3.3 - $3.5 billion
• Structure of DOE contracts understates revenue exposure • $2.3 billion “imputed DOE revenue”
Department of Defense
65%
Department of Energy
20%
Other FederalAgencies
15%
8% Directly Related to Military Operations in
Middle East
Enhanced Opportunities with DOD and Other Agencies
• Enhanced scale and global reach better position URS to win large, bundled multi-service DOD contracts
• Addition of construction capability provides new opportunities
• Military construction• Military base realignment and closure (BRAC)
• Increased opportunities under existing contracts with the Air Force, Navy and other military branches
• Heavy Engineering, Repair and Construction (HERC) program for the Air Force
• Air Force Contract Augmentation Program (AFCAP)• Navy Global Contingency Construction Contract (GCCC)
Positive DOD Budget Trends
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009
$ B
illio
ns
Supp. RequestSupp. ApprovedBaseline
DOD ToplineBudget
Significant O&M Spending
-
Consistent O&M Growth
182
214
301282
240
0
50
100
150
200
250
300
350
FY05 FY06 FY07 FY08 FY09
$ B
illio
ns
MILCON4.1%
Revolving Funds0.4%
Family Housing0.6%
RDT&E15.4%
Military Personnel
24.3%
Procurement20.2% O&M
34.9%
501526
601669
685
Source: DOD FY09 Budget Submission; URS Estimates for FY08 and FY09
8.1% CAGR
13.4% CAGR
FY09 O&M Spending Estimated to Increase to FY09 O&M Spending Estimated to Increase to $300B Including $300B Including SupplementalsSupplementals
Enhanced Capabilities to Meet Military Base Realignment and Closure Projects
• U.S. realigning base locations to meet post-Cold War threats• Focus on Eastern Europe, Central Asia, and Africa • Major base realignment and closure (BRAC) program- $20B market;
$10B addressable by URS• New system organized around three tiers of overseas bases
• Retaining some of large existing “main operating bases”• Establishing austere overseas “forward operating sites”• Establishing minimalist “cooperative security locations”
KeyExpeditionary Operations CampaignCONUS BRACEuropeanAsia-Pacific RimAFRICOM
Quadrennial Defense Review (QDR) Determines Military Priorities
• Realign the military to combat a broad range of threats
• Four priority areas:• Defeating terrorist networks• Defending the U.S. homeland• Shaping the choices of countries at strategic
crossroads• Preventing hostile states and non-state actors
from acquiring or using WMD
Key Projects
• Chemical weapons destruction - U.S. Army• Johnson Atoll (Closed)• Tooele, UT• Anniston, AL• Pine Bluff, AR• Umatilla, OR• Pueblo, CO• Bluegrass, KY
• Significant international demilitarization work• Demilitarization project for Defense Threat
Reduction Agency (DTRA) in Europe and former Soviet Union
• Joint range technical services (J-Tech) support- U.S. Air Force
• Test and training ranges in Utah, Nevada, Edwards AFB, CA, and Navy Electronic Combat Range at China Lake, CA
• JT-3 joint venture with Raytheon
Key Projects
• Contract field teams - U.S. Air Force/U.S. Army
• DOD contractor providing maintenance and repair services to military ground and aviation systems worldwide
• Weapons of Mass Destruction Proliferation Prevention Initiative (WMD-PPI)- Defense Threat Reduction Agency (DTRA)
• Installation of nuclear detection portal monitors, communication, and data storage at over 30 points of entry in Eurasia
• Hickam Air Force Base• Design and construction services
supporting C-17• 60,000 sq. ft. corrosion control hangar• 20,000 sq. ft. maintenance shop
Department of Energy BusinessDavid Pethick
President, Energy & Environment Business UnitWashington Division
DOE Business Foundation
• Leading provider of environmental management services to the DOE (37% share)*
• Strong, long-term relationship with DOE and predecessor agencies dates to Manhattan Project• Won 9 of past 11 major DOE project awards pursued
since 2001
• Highly talented team with advanced skills in nuclear, high hazard, classified and regulatory driven environments
• Separate funding sources from other URS federal businesses
* Source: URS current estimates
Leading Capabilities in Three DOE Business Areas
Management Services
Consulting
Engineering, Procurement and Construction
Large, Stable Funding Source
• Expect DOE budget to remain stable for near term
• Current oil prices will drive increased funding for nuclear and renewable energy, and clean coal technology
DOE Budget(as appropriated)
$ Billions
Other DOE
9.1 9.2 9.2
7.2 6.6 6.2
8.7 8.8
7.0 5.6
7.2 107.9 8.3 9.0
2004 2005 2006 2007 2008
22.9 24.2 24.1 24.424.4
National Nuclear Security AdministrationEnvironmental Management
DOE Complex-Wide InvolvementDecontamination, decommissioning, and environmental remediation work
Part of teams that manage Los Alamos, Lawrence Livermore, and Idaho National Laboratories
Lead contractor for West Valley decommissioning and closure project
Lead contractor for management and operations of the Savannah River Site and National Laboratory
Manage deep geological nuclear waste repository
─ Team with Power Business Unit
• Licensing• Services• Operations
Operations/Projects/ConsultingOperations/Projects/Consulting
UK MarketUK Market
Increase National Nuclear Security Administration and
Other DOE Market Share
• Expand to UK by Transporting DOE Model
• Expand high hazard expertise / technology to adjacent government markets
• NASA
Recognized Global Market Leader in High Hazard Risk Reduction
Retain #1 DOE Environmental Market Share
• Hydrogen• Advanced Nuclear
Plants• Advanced Nuclear
Fuel Cycles• Reprocessing
Future EnergyFuture Energy
Nuclear RenaissanceNuclear Renaissance
Diversified Growth Strategy
Management Services Projects
Savannah River SiteAiken, South Carolina
• Largest integrated site in the DOE complex
• 310 square miles encompassing parts of 3 counties
• $1.1B annual budget
• $26.7B since 1989
Waste Isolation Pilot ProjectCarlsbad, New Mexico
• Only licensed deep geological nuclear waste repository in U.S.
• $2.2B facility
• $230M annual budget
• Managing contractor since 1985
Management Services Projects (continued)
Idaho National LaboratoryIdaho
• $500M Annual budget
• National energy and space research
Los Alamos National LaboratoryNew Mexico
• $2.2B annual budget
• National security research
Lawrence Livermore National LaboratoriesCalifornia
• $1.6B annual budget
• Prevent spread and use of weapons of mass destruction
Cleanup/Closure Projects
West Valley Demonstration ProjectWest Valley, New York
• Nation’s only commercial nuclear fuel reprocessing center – shutdown in 1972
• $2.4B project • Managing contractor since inception in 1982• First high-level liquid radioactive waste
solidification program completed in U.S.
Hanford Waste Treatment PlantRichland, Washington
• Largest nuclear construction project in U.S.• $12B EPC contract • Plant will treat 53 million gallons of high-level
liquid nuclear waste stored in 177 underground storage tanks
• Builds on West Valley, Savannah River, and Idaho Cleanup Project experience
Cleanup/Closure Projects (continued)
River Corridor Closure ContractHanford Site, Washington
• Cleanup of 210 square mile site• $1.9B project • 7 year contract awarded in March 2005• Placement of deactivated plutonium
production reactors in interim safe storage, clean up of waste sites and burial grounds and demolition of contaminated facilities
Idaho Cleanup ProjectIdaho National Laboratory, Idaho
• Environmental cleanup of 890-square-mile national laboratory in Eastern Idaho
• $2.9B project• 10 year contract awarded in March 2005 • Decommissioning and dismantlement of
215 excess facilities including three reactors, management of spent nuclear fuel, remediation of subsurface disposal area
UK Market Characteristics
• Stable funding• Cost-reimbursable contracts• Predictable earnings and cash flow• Minimal working capital
5.7 5.6 5.54.9
0.0
2.0
4.0
6.0
2007/8 2008/9 2009/10 2010/11
UK Nuclear Decommissioning Authority Budget(as appropriated)
$ in Billions
* Source: Nuclear Decommissioning Authority
Significant UK Opportunity
• UK is in early stages of cleaning up and decommissioning governmental nuclear complexes
• $25B expected to be spent over next 5 years*
• Nuclear decommissioning
• Waste reprocessing
• Remediation
• Facility management
• Preferred bidder announcement for Sellafield Site contract expected in 2008 ($12B budget for initial 5 year term)
• Several additional opportunities expected in next 5 years ranging from $800M to $12.5B (5 – 17 year terms)
* Source: Nuclear Decommissioning Authority
Areas of Strength for URS
UK Management Services Project
Low Level Waste RepositoryUnited Kingdom
• March 2008, URS-led team signed agreement to manage and operate UK’s national low-level-nuclear waste repository and develop national UK low level waste strategy
• $300M over 5 years
• First of series of large contracts to be awarded by the Nuclear Decommissioning Authority
Federal Sector Business Positioned for Growth
• Leading Federal sector business with diversified DOD and DOE revenue mix
• Well positioned to seize long-term growth opportunities in DOD market and maintain/grow DOE market share
• Strategic opportunity to participate in emerging UK market by transporting our DOE business models overseas
Federal SectorQuestions & Answers
Investor Day 2008New York | April 22, 2008
Infrastructure SectorTom Bishop
Senior Vice President, URS Division
Leading Infrastructure Business
• Leading position in long-term growth markets• Transportation: highways, transit, airports,
ports and harbors• Public facilities: schools, courthouses, hospitals• Water resources
• Competitive advantages• Client-driven project delivery models:
• Plan, Design and Construct• Design-Build• Design-Build-Operate-Maintain
• National delivery system• Long-term relationships with state/local agencies
• The New URS: full service capability• Project development• Program management• Planning and design• Construction/construction management services• Operations and maintenance• Demolition
20%
Well Diversified End Markets
Transportation
Water Resources
Facilities65%
22%
13%
Estimated Mix of 2008 Infrastructure Sector Revenues: $1.7 – $1.9 Billion
Expanded Service Capabilities
• Program management• Planning and permitting• Environmental consulting• Architectural design• Design and engineering• Construction management• Demolition
“Old” URS
Expanded Service Capabilities
“New” URS• Project development• Procurement• Construction• Design build• Facility start-up• Operations and maintenance
• Program management• Planning and permitting• Environmental consulting• Architectural design• Design and engineering• Construction management• Demolition
FullyFully--Integrated Design/Build/Operate/Maintain CapabilitiesIntegrated Design/Build/Operate/Maintain Capabilities
Full Life Cycle Capabilities
Operations & Maintenance
70%
Construction
Estimated Mix of 2008 Infrastructure Sector Revenues: $1.7 – $1.9 Billion
Engineering Services
25%5%
Capabilities Added Through Washington
Group acquisition
National Delivery System
Nationwide operations through 300+ offices
Long-Term Need for Infrastructure Investment is Clear
• $30-40B of additional annual highway investment required
• More than 25% of nation’s bridges rated structurally deficient
• $200B in investments needed in water over next 20 years
Aging Infrastructure*
Population Growth/Migration
Regulations/ Compliance
Technical Innovations
Public Awareness
• Regional population growth driving need for new schools, hospitals, water, transportation infrastructure (Texas, Nevada, Arizona)
• Aging boomer generation requiring additional health care facilities
• Clean Water and Safe Drinking Water Acts
• Smaller class sizes mandated by the No Child Left Behind Act
• Technology in classrooms driving renovation of facilities
• Medical advances require retrofitting of medial centers and hospitals
• Mass transit increased 21% from 1993 to 2002, faster than any other mode of transport
• Water quality issues and shortages focusing attention on infrastructure needs
• Political Initiatives (Coalition for Building America’s Future, National Infrastructure Bank Act)
*Source: American Society of Civil Engineers; Urban Land Institute, May 2007
Increasing Use of Bond Financing
0
50
100
150
200
250
300
350
400
'01 '02 '03 '04 '05 '06 '07 '08E
General Fund Revenues -Top URS States ($B)
Total Annual Bond Issuance -All States ($B)
Source for Graphs: Thomson Financial, National Association of State Budget Officers and individual state estimates for 2008
150
200
250
300
350
400
450
500
'01 '02 '03 '04 '05 '06 '07
Funding Environment Estimated to Support MidFunding Environment Estimated to Support Mid--to Highto High--Single Single Digit Growth in URS Infrastructure Revenues in 2008 Digit Growth in URS Infrastructure Revenues in 2008
Bond Sales Accelerating Investments
2002 2007
General Purpose
Utilities
Transportation
Public Facilities
Housing
Environmental Facilities
Education
$430 B
$360 B
Bond Sales by Major Categories Top Bond Issuing States
1. California
2. Texas
3. New York
4. Florida
5. Pennsylvania
6. Illinois
7. Ohio
8. New Jersey
9. Massachusetts
10. Georgia
Source: Thomson Financial
Leader in Transportation Markets
Representative Markets:• Highways, bridges, tunnels
• Rail systems: commuter, heavy, light, freight and high speed
• Airport terminals, runways, towers
• Ports and harbors
• Other transportation structures: stations, parking, maintenance facilities
Long-Term Funding Sources in Place
• Federal funding for highway, transit and airport projects
• SAFETEA-LU: $286.5B over FY2004 – FY2009 (up 31% from TEA-21 bill)
• Vision 100-Century of Aviation Re-authorization Act
• State and local discretionary and capital budgets
• Funding delivery accelerated through increased use of bonds
• Public Private Partnerships (PPPs)
General Fund
Bonds
State Taxes/User
Fees
Federal Funds
Surface Transportation: Funding Sources/Methods*
*Source: Represents current estimated funding sources for capital spending at state level
Hudson-Bergen Light Rail Transit
• Design-Build-Operate-Maintain (DBOM) contract $1.4B light rail system in Northern New Jersey
• Largest DBOM transit project in U.S.
• 20 rail miles
• Transports more than 20,000 commuters each day with 98-99% reliability
Significant Player in Facilities Markets
Representative Markets:
• Health care facilities
• Education: K-14 and universities
• Judicial and corrections facilities
• Public use buildings
• Government office buildings
• Transportation facility structures
General Fund
Federal FundsOther
State/Local Funds
Bonds
Educational Facilities: Funding Sources/Methods*
Bonds are Major Funding Source for Facilities Projects
• Majority of funding from bond issuances
• Local real estate taxes
• State general funding (limited to a few states)
• Private endowments
• Funding delivery accelerated through use of bonds
*Source: Represents current estimated funding sources for capital expenditure on K-14 and higher education facilities
England Airpark and Community
• Transformation of former England Air Force Base into a business and industrial campus, including a commercial airport
• Decommissioning and closure
• Planning, design and engineering
• Highly successful base realignment and closure project (BRAC) in Rapides Parish, Louisiana
Leader in Water / Wastewater Market
Representative Markets:• Dams and reservoirs• Water treatment• Storm and ground water management• Wastewater collection and treatment• Flood control• Coastal erosion• Hydropower facilities• Levees
Significant Majority of Funding from Bonds and User Fees
• Increasing user fees
• Accelerated funding delivery through use of bonds
• Federal funding for waterways, flood control and wetlands under Water Resources Development Act of 2007 (WRDA)
• $23B authorization
Federal Funds
Other State Programs
User Fees
Bonds
Water/Wastewater Funding*
*Source: Represents current estimated funding sources for capital expenditure in URS water/wastewater markets
Olmsted Dam
• Construction of 2,700-foot-long concrete dam across Ohio River near Olmsted, IL
• Addition of dam and locks to maintain navigable depths for shipping routes
• $865M construction cost
• Technically innovative construction program using “in-the-wet”, or underwater, method
The New URS Can Deliver Infrastructure
URS Division Washington Division
The New URS
• Project development
• Detailed engineering
• Procurement
• Construction
• Design build
• Facility start-up
• Operations and maintenance
• Program management
• Planning and permitting
• Environmental consulting
• Architectural and engineering design
• Construction management
• Demolition
• National footprint of +300 offices
• Relationships with local decision makers
• Early entry into projects as program managers and planners
• Full Scope of project Services
• Responds to client trends:
• One-stop-shop
• Public / Private / Partnerships
• Outsourcing of O&M
• Improved marketknowledge, including upcoming projects
• Improved intelligence of project issues
• Ability to selectively pursue optimal projects
Stronger Combined Service Offering to Capture LongerStronger Combined Service Offering to Capture Longer--Term GrowthTerm Growth
Infrastructure SectorQuestions & Answers
Investor Day 2008New York | April 22, 2008
Industrial & Commercial SectorGary Jandegian
President, URS Division
Robert ZaistSenior Executive Vice President
Washington Division
Strongly Positioned in Industrialand Commercial Sector
• Relationship based model• Master Service Agreements with nearly half
of Fortune 500• Clients seeking fully integrated engineering
and construction solutions for ongoing operations and capital projects
• URS provides services for full project life cycle• Consulting• Planning, siting, permitting, environmental studies• Engineering• Procurement• Construction• Project and program management• Operations & maintenance• Decommissioning, demolition and asset recovery
• Major end-markets• Industrial and manufacturing• Mining• Oil & Gas
26%
Focused on Three Growth Markets
• Oil & Gas EPC and EPCM• Gas monetization• Heavy maintenance• Refining• Pipelines• Asset recovery• Environmental compliance
• Aerospace & electronics • Automotive• Food & beverage• Pulp & paper• Metals• Chemicals• Pharmaceuticals
• Base & precious metals• Energy minerals• Industrial minerals
Industrial & Manufacturing Mining Oil & Gas
Balanced Revenue Mix
Oil & Gas
35%
Industrial & Manufacturing
50%
Mining
15%
Estimated Mix of 2008 Industrial and Commercial Revenues: $2.4 – $2.6 Billion
• Expected 2008 Oil & Gas revenues of approximately $875M
• Expected 2008 Mining revenues of approximately $375M
Expanded Service Offering – Old URS
Environmental
Consulting
Construct
ionFaci
lity Star
t-up
Procurement
Engineering & Desi
gn
Process E
ngineering
O&M and
Facility
Management
Expanded Service Offering – New URS
Environmental
Consulting
Engineering & Desi
gn
Construct
ionFaci
lity Star
t-up
O&M and
Facility
Management
Process E
ngineering
Procurement
Fully Integrated Engineering, Construction and Operations & Maintenance Services
Revenues Across Project Life Cycle
Engineering
50%Construction
30%
Operations & Maintenance
20%
Estimated Mix of 2008 Industrial and Commercial Revenues:$2.4 – $2.6 Billion
Holcim Cement Project
Client: Holcim CementLocation: MissouriService: ConstructionContract Value: $500M+Duration: 2007 – 2009Scope:• Construction management
and general contractor services
Caterpillar Global ServicesGlobal Facilities Management Alliance
Client: CaterpillarLocation: 40 sites on four continentsServices: Bundled FMContract Value: $242MDuration: 2006 – 2011Scope:• Facilities management services for over
100 million sq. ft. of industrial space Services include:• Program management; building and
production maintenance; utilities and security; mail and shipping; hazardous material removal; and water/wastewater treatment
Servicing a Range of Mining Projects
• Base and Precious Metals• Industrial Minerals• Coal / Lignite• Uranium
Clients Include:
TechnicalConsulting
ProjectDevelopment
Engineering& Design
ProjectManagement Construction
FacilityStart-up
Operations&
Management
Reclamation& Closure
Pinto Valley Copper Mine Restart
Client: BPH Copper, Inc. (Subsidiary of BHP Billiton Ltd.)
Location: ArizonaProduct: CopperContract Value: $310MProduction: 33 million tonnes per
year of ore Duration: 2007-2012Scope:• Contracting mining services including
drilling and blasting, and loading and hauling of ore, leach and waste
Oil & Gas MarketRobert Zaist
Senior Executive Vice President, Washington Division
Well Positioned In Oil & Gas Market
• URS provides complete life cycle of services – planning, environmental, engineering, procurement, constructionand O&M
• Old URS business was almost entirely downstream – new URS business portfolio balanced between upstream and downstream
• $350B global market• Early project involvement transitioning to full scale projects
FeasibilityStudies
Environmental Services
Engineering & Design Procurement Construction Operations &
Management
Combination of URS Division’s MSA Relationships and Washington Division’s Major Strength in Programs and Broader Service Offering
Provide Company with a Unique Competitive Position
Opportunities Across Oil & Gas Process
• Oil Sands
• Oil and Gas
SulfurRecovery
Gas Delivery
Fuel Distribution
Petrochemicals
ChemicalsOil Sands Mining
Oil Production
Gas
Gas Monetization
Current Focus Area Strategic Growth Area Future Potential Areas
OilExtraction
and Upgrading
RefiningBitumen
Sand Production
MidstreamProcessing
LiquefiedNatural Gas
(LNG)
LNGTerminal
Gas-to-Liquid(GTL)
Gas-Oil Separation
Field Processing
Global Reach
Confidential ClientPolymers Project
Louisiana
Upstream GasColorado
Ohio Refinery
Sulfur HandlingQatar
SRU/TGCUOntario
Oil SandsAlberta
New JerseyRefining
MethanolEquatorial Guinea
Upstream GasColorado
Upstream GasColorado
Sulfur HandlingAbu Dhabi GOSP
Abu Dhabi
Upstream GasSakhalin Island
OfficesProjects
Strong Energy Demand Growth
Source: Engineering and Construction Contracting Association 38th Annual Engineering Construction Contracting Conference
Energy by Type World Oil and Gas Demand
50
0
350
300
250
200
150
100
1980 20302020201020001990
MBDOE
Oil
Gas
Coal
Other
50
0
350
300
250
200
150
100
1980 20302020201020001990
MBDOE
Required NewProduction
Producing FieldsDecline
~4-6% per year
Existing IndustryProduction
Industry Outlook
Significant Opportunities in Oil Sands
• Recoverable reserves • 175 billion barrels
• Capital investment • $14B in 2006
• $16B in 2007
• Major producers announce CAPEX expansions• Facilities able to produce
3.0 - 3.4 million barrels per day by 2015
Source: CAPP; “Canadian Oil and Gas Industry Outlook: Opportunities and Challenges -2007,” January 2008
Favorable Market Trends
• Upstream oil & gas development• Oil & gas demand growth projected to remain robust
and support investment• Industry collaboration and equitable risk profile• Staged execution – Pre-FEED, FEED, EPC
• Downstream refining & petrochemicals• Refining investment driven by crude mix changes• Petrochemical facility expansion driven by product demand• Staged execution, FEED to EPC
• Increased investment in other energy sources• Oil sands• Gas• Coal gasification
ExxonMobilPiceance Basin Program
Client: ExxonMobil
Location: Piceance Valley, NW Colorado
Capacity:• 200 MMSCFD natural gas production• 20,000 bbl produced water• 17,000 bbl gas condensates
Scope:• FEED, engineering, procurement,
construction management
Project Features:• Gas, water, and condensate separation and
administrative facilities at three locations• Well pad production/separation facilities;
nine wells per pad• 17-mile gathering pipeline truck system• Administration complex
ConocoPhillipsWood River Construction and O&M
Client: ConocoPhillips
Location: Roxana, Illinois
Scope: Construction and O&M services
Projects:• Sulfur block unit and CCU-3 restart
Project Features:• 322,000 bpd crude oil refinery, largest
in ConocoPhillips system• Construction projects are part of the Coker
and Refinery Expansion (CORE) Program• Supplemental maintenance, turnarounds,
and capital projects support since 1992• Award-winning safety program • Approximately 320,000 work
hours annually
QatarGas IICommon Sulfur Project
Client: QatarGas
Location: Ras Laffan, Qatar
Project:• QatarGas II• Common Sulfur Project
Capacity: 12,000 LTPD
Scope:• Engineering, procurement, construction
Project Features:• 12,000 tons/day liquid sulfur gathering• Molten sulfur collected from 11 gas plants;
34 kilometers of electrically-heated pipelines • Solidification, granulation, storage and shipping• Achieved 5,000,000 safe work hours to date
Combined CapabilitiesWashington URS New URS
Market Focus
• Upstream – Onshore processing• Midstream – Gas storage, NGL
fractionation, LNG• Downstream – Sour water
treatment• Other – Chemicals, ethanol, coal
gasification studies, oil sands
• Midstream – Pipelines, NGL recovery, fractionation and storage
• Downstream – Refining & chemicals
• Other – Industrial wastewater, environmental permitting, assessments (non-P&EG) and control
• Fully integrated upstream capability
• Broad midstream capabilities• Upstream field development
and operational support• Downstream facilities
upgrades and expansions
• Full life-cycle services
• Full project range capabilities
• Expanded global reach
• Broad offerings to the oil, gas and chemicals industries
Services • FEED• EPC, EPCM, C• Maintenance
• Permitting (non-P&EG)• FEED• EPCM
Project Size
• Range – Mid-size to large • Range – Small to mid-size
Geography • U.S. • Canada• Middle East
• U.S. and selected international locations
Sweet Spots
• Gas processing• Sulfur recovery/handling• Gasification• EPC project delivery• Union/non-union construction
• Liquids fractionation• Select refining/chemical processes • Industrial wastewater treatment• Emissions control• EP project delivery• Small project alliances
Industrial & Commercial SectorQuestions & Answers
Investor Day 2008New York | April 22, 2008
Power Sector OverviewTom Zarges
President, Washington Division
Lou PardiPresident, Power Business Unit
Washington Division
Leading Power Sector Business
• Demand from increasing power generation needs, emissions regulations• One of the largest EPC companies in the U.S. power market• One of two steam generator replacement contractors for U.S. nuclear plants• Leading provider of U.S. FGD retrofits in last ten years
21%
Every Major Nuclear or Fossil Technology
Every Region of the World
Every Segment ofthe Life CycleLatin America
20,600 MW
North America184,100 MW
Europe8,000 MW
Middle East/Africa2,400 MW
Asia/Pacific37,000 MW
Designed and/or Constructed 250,000 MW WorldwideDesigned and/or Constructed 250,000 MW Worldwide
Unmatched Experience
• One of the largest power generation contractors, with over 250,000 MW installed capacity worldwide
• Full in-house service capability –from conceptual engineering through turnkey construction
• More than 100 years of power generation experience
• Long-term client relationships through alliances, services and outsourcing agreements (DTE, Reliant, TVA, NRG)
Strong Presence in Fossil and Nuclear Power
Fossil Fuel
85%
Nuclear
15%
Fossil Fuel markets • Coal• Natural gas• Retrofits
Nuclear markets • Steam generator
replacement• New nuclear
Note: Percentages represent approximate proportion of expected 2008 Power Sector revenues
Estimated Mix of 2008 Power Sector Revenue: $2.0 – $2.2 Billion
Client Base of Leading Energy Companies
Representative Clients
Allegheny Energy
Alliant Energy
Constellation Energy
Detroit Edison
Suncor Energy
Tennessee Valley Authority
We Energies
Fossil NuclearRepresentative Clients
Entergy
Exelon
Florida Power & Light
General Electric - Hitachi
Louisiana Energy Services
Pacific Gas & Electric
Public Service Enterprise Group
New Generation• Coal-fired power plants
• Conventional• Circulating fluidized bed• Gasification (IGCC)
• Combustion turbine plants• Combined cycle• Simple cycle
• Nuclear• Boiling water• Pressurized water
• 30% of Power revenue
• Clean air retrofits• Sulfur oxides, nitrous
oxides, particulates, mercury
• Maintenance• Component replacement
• Steam generators• Pressurizers• Reactor vessel heads
• 60% of Power revenue
• Fossil and nuclear• Transmission and
distribution• Studies• Licensing• Consulting• Engineering• Construction management• Utility management• Outsourcing / seconding• 10% of Power revenue
Serving a Broad Range of Markets
Modification Services Technical Services
Comprehensive Service Offering
Planning and Consulting• General planning• Siting and licensing• Environmental permitting
Grassroots Development• Engineering and construction, startup• Transmission and distribution
Operations• Expansion, retrofit and modification• Operations and maintenance
Closure• Decontamination / decommissioning
FacilityStart-up
Construction &
ConstructionManagement
Decommissioning &
Closure
TechnicalConsulting
Planning, Design &
Engineering
Operations &Maintenance
ProjectDevelopment
ProgramManagement
URS Offers Broadest Range of Services
Fossil New Generation
Nuclear New Generation
Nuclear Steam
Generator Replacement
Air Quality Control Systems
Transmission &
Distribution
BECHTEL
FLUOR
SHAW
BLACK & VEATCH
QUANTASERVICES
Fossil Power Opportunities
Key Market Drivers and Trends• New nuclear plants in U.S. will not come online until at least 2014-2015 • Natural gas-fired plants will fill gap due to short schedules and low CAPEX• Renewable energy will provide only modest competition for investment dollars• Clean Air Interstate/Clean Air Mercury rules will continue to drive air quality
investments until 2020; second wave may be driven by CO2 legislation
0
2000
4000
6000
8000
10000
12000
2006 2007 2008 2009 2010
Combined Cycle Gas
Coal
Simple Cycle Gas
U.S. Fossil Capacity Additions by Technology Type (MW)*
*Source: Platts Power Outlook Research Service, February 2008
Strategic Growth Priorities
• Customer Base• Maintain U.S. focus; expand overseas around existing platforms• Relationship-based, focused on repeat business
• Roles• Bundled services as EPC contractor, program manager• Professional services
• Markets• New fossil and nuclear generation• Major modifications (clean air retrofits, steam generator replacements)• Transmission, distribution, substations, SCADA• Technological neutrality
• Risk Management• Maintain appropriate risk/reward balance
• Sustain strong market position in major nuclear and fossil retrofits• Pursue natural gas and new-generation coal projects• URS is positioned for nuclear renaissance
Majority of URS Projects are Target Price
Spectrum of options• The risk extremes are “turnkey” and “cost plus”• The cost extremes are “turnkey” and “target price”• The control extremes are “turnkey” and “cost plus”• Owner chooses optimal cost/risk/control allocation
Owner’s Contingency
$
Risk Allocation
Cost Plus
minmax
Owner’s RiskContractor’s Risk
maxmin
Target PriceFirm Fixed PriceThrough Mechanical Completion
Base Project Cost
Project TIC
Contractor’sContingency & Margin
Turnkey
We EnergiesPort Washington Generating Station
Location: Port Washington, WisconsinMajor Equipment:• 4 GE FR7FA combustion turbines• 4 Alstom HRSGs• 2 GE steam turbines• DCS – Emerson Ovations SystemScope:• Engineering, procurement and construction - target price Completion Date: Mid-2008Unique Features/Challenges:• OSHA VPP Construction Star status (highest level available)• New plant is located on existing coal fired power station• SCR for NOX Control• Existing circulating water tunnel was adapted for new plantAwards:• Power Engineering’s Best Gas-Fired Project, 2005
Salt River ProjectSpringerville Unit 4 Coal-Fired Power Plant
Location: Springerville, ArizonaMajor Equipment:• Boiler (Foster Wheeler)• Steam Turbine Generator (Mitsubishi) • SCR (Alstom)• Dry FGD System (Alstom)• Baghouse (Alstom)Scope:• Engineering, design, procurement support
and construction managementCompletion Date: December 2009Unique Features/Challenges:• Tight site due to existing Unit 3, railroad tracks
and existing U/G Systems• Short engineering and construction schedule
Tennessee Valley AuthorityFlue Gas Desulfurization (FGD) System
Location: Paradise, Kentucky, and other sitesScope:• Engineering, design, procurement and
construction/construction managementUnique Features/Challenges:
• URS-MHI (Mitsubishi Heavy Industries) joint venture for FGD projects
• $1.5B 10-year FGD scrubber program(since 2002)
• In 2007, completed the design and installation of scrubber for TVA’s 1,050 MW plant in Paradise, KY – among the largest FGD scrubber projects in the world
Nuclear MarketLou Pardi
President, Power Business UnitWashington Division
A Rich Nuclear Power Heritage
Extensive U.S. Nuclear Experience
Diablo Canyon
IndianPoint
Fort Calhoun
Comanche Peak
Waterford St.Lucie
Crystal River
Robinson
Brunswick
Harris 1
J.A. FitzpatrickSeabrook
Engineer of Record
Watts Bar
Millstone
Vermont Yankee
(Puerto Rico)Bonus
Constructor of Record
Dresden
South Texas
Quad Cities
Three Mile Island
Ft. St. Vrain
West Valley
Hanford River
Corridor
Idaho Falls Laboratory
Mound Facility
Savannah River
Rocky Flats
INEL (M&O)
Oak Ridge
WIPP
DOE Projects
Salem
Calvert Cliffs
Wolf Creek
Byron
Palo Verde
Connecticut Yankee
Browns Ferry
Callaway
ClintonBraidwood
LaSalle
Prairie IslandPoint Beach
PalisadesFermiFermi
LimerickPeach Bottom
Nine MilePoint
Oconee
Engineering Modifications
Susque-hanna
Columbia
Hatch
Vogtle
PerryPerry
Maintenance Services
Arkansas Nuclear One
Shoreham
Quality Programs
Pilgrim
Princeton – PA Accelerator
McGuire Catawba
River Bend
Grand Gulf
San Onofre
Zion
U.S. SGR/RVCH Projects
DCCook
Decommissioning
ShippingportWaltz Mill
Worldwide Nuclear Experience
EngineeringConstruction
Angra 1
Laguna Verde 1Laguna Verde 2
Chin Shan 1Chin Shan 2
Torai 1Tsuruga 1Mihama 1Ohi 1Ohi 2
Almaraz 1Almaraz 2Cofrentes
Santa Marid de GaronaJose Cabera
Ringhals 2
Beznau 1Beznau 2
Lungmen 1Lungmen 2
Nuclear Fuel Market Drivers
• Solution to greenhouse gas emissions• Rising fuel prices• Provides fuel diversity• Energy Policy Act stimulation
• Production tax credit of $18/MWh for the first 6,000MW (first 8 years online)• 80 percent loan guarantees• Standby support for delays in the first 6 plants (due to process breakdown or litigation)• Price Anderson Act renewal to plants online before 2025
• Technology improvements; one-stop licensing; spent fuel storage and reprocessing
U.S. Nuclear Power Status: Uprate Approvals and New Plant Applications*
Power uprate approvals**
Applications for new plants 0
2
4
6
8
10
12
14
16
2004 2005 2006 2007 2008 2009 2010
ExpectedActual
*Source: Nuclear Regulatory Commission, April, 2008 **Assumes average 1 year approval time for anticipated uprate applications
Best CaseMost LikelyWorst Case
Key*
7
0
10
2006 - 2016
Emerging Markets Keys to success …Certainty—of technology, cost & schedule
Capacity—resource & supply chain to deliver
Credibility—experienced delivery team
Commitment—to industry for the long term
Keys to success …Certainty—of technology, cost & schedule
Capacity—resource & supply chain to deliver
Credibility—experienced delivery team
Commitment—to industry for the long term
Projected Nuclear New Build
Estimated New Plant Orders by 2016 Estimated New Plant Orders by 2016 ——Scenarios Worth $35 to $150B Over Next 10 YearsScenarios Worth $35 to $150B Over Next 10 Years
106
16
2006 - 2016
Europe
93
16
2006 - 2016
AIM
23
42
10
2006 - 2016
Asia
North America
157
24
2006 - 2016
*Source: GE
Nuclear Power Plants – The New Way
• Advanced designs are pre-licensed
• Engineering is largely completed before construction begins
• More regulatory certainty
• Increased collaboration among project participants
• Utilize information technology
• New techniques, such as open-top construction and composite structuresConstruction Cycle Shorter Construction Cycle Shorter –– Verification and Verification and Configuration Management are Integrated into DesignConfiguration Management are Integrated into Design
Well Positioned for Nuclear Renaissance
• Advancing construction management techniques• Louisiana Energy Services, National Enrichment Facility
• Real time construction on a multi-billion dollar facility• Steam Generation Team (SGT) joint venture with AREVA
• One of only two major component replacement contractors in the U.S.
• Alignment with technology suppliers• GE - Economic Simplified Boiling Water Reactor (ESBWR) • Mitsubishi – Advanced Pressurized Water Reactor (APWR)• AREVA – SGT joint venture
• Expanding international customer base through project management work in China
• New Nuclear Center near Charlotte, North Carolina
AmerenUECallaway Nuclear Power Plant Unit 1
Location: Fulton, Missouri
Major Equipment:• Standardized Nuclear Unit Power Plant System• Westinghouse water reactor• General Electric turbine generator
Scope:• Engineering, PM, licensing, training,
and construction to support steam generator replacement
Completion Date: November 2005
Unique Features/Challenges:• Work completed in record time: 63 days, 13 hours
(set 3 world records for a Westinghouse system)• Successfully installed large components ― each generator
is 68 feet tall, 17 feet in diameter at widest part and weighs 372 tons ― in complex environment
Awards/Records:• Platts Global Energy Award; ENR/McGraw-Hill Construction
Energy Project of Year, 2006
Louisiana Energy ServicesNational Enrichment Facility
Location: Eunice, New Mexico
Scope:• Construction, CM and procurement
Completion Date: August 2011
Unique features/challenges:• First new nuclear construction
in last 25 years• Largest grassroots new nuclear
construction project in the U.S. today• First new nuclear facility in U.S. licensed
under the NRC’s one-step process
Power Sector is Positioned for Growth
• Well positioned to benefit from high-growth market, including nuclear renaissance
• Significantly enhanced capabilities with the addition of the Washington Division
• Unmatched experience, serving a broad range of markets
• Poised to maintain leading market position, while expanding overseas business
Power SectorQuestions & Answers
Investor Day 2008New York | April 22, 2008
Financial OverviewTom Hicks
Chief Financial Officer
History of Strong Earnings Growth and Cash Flow
Net Income
($ M
)
Estimated and EPS excludes non-cash charge related to amortization of purchased intangibles from the Washington Group acquisition. See reconciliation table at the end of presentation for a reconciliation of non-GAAP financial measures to GAAP.
*Expected EPS for 2008 is $2.61 - $2.73
0
50
100
150
200
'04 '05 '06 '0750
100
150
200
250
300
350
'04 '05 '06 '07
Cash Flow
($ M
)
Operating Cash Flow
Earnings Per Share
1.00
1.50
2.00
2.50
3.00
'04 '05 '06 '07 '08*(Estimated)
2004-2007 CAGR of 15.4% 2004-2007 CAGR of 28.9% 2004-2007 Op Cash FlowCAGR of 48.4%
Attractive Operating and Financial Profile
• Diversified revenue base, with over 12,000 contracts• Focused on long-term customer relationships• Approximately 80% of 2007 revenues from repeat customers
• Very limited exposure to lump-sum fixed-price contracts
• Low CAPEX needed to support growth (~$100M in 2008, less than D&A)
• High percentage of net income converts to operating cash flow
• NOLs and tax benefit of intangible amortization from Washington Group acquisition should largely offset federal taxes for next two years
Very Limited Fixed-Price Contract Exposure
Cost Plus (40 - 50%)
Time & Materials (20 - 25%)
Target Cost, Unit Delivery & Other (20 – 25%)
Fixed-Price (10 - 15%)
Estimated 2008 Revenue Base
Fixed Price Only 10 Fixed Price Only 10 -- 15% of Total Outstanding Contract Value15% of Total Outstanding Contract Value
Balanced Revenue Mix & Operating Margins
URS33%
EG&G22%
WD45%
Estimated 2008 Revenues
Estimated Operating Margins*• URS Division 6-8%• EG&G Division 5-7%• Washington Division 4-6%
*Estimated long-term average
Expected 2008 Revenue Breakdown
$2.5B$1.8B$2.1B$3.4BTotal
1.40.41.90.7WD
2.2EG&G
1.11.40.20.5URS
Industrial & CommercialInfrastructurePowerFederal
$3.2B
Total
$2.2B
$4.4B
$9.8B
$30 Billion Book of Business Drives Growth
0
3
6
9
12
15
18
21
24
27
30
33
FY 2004 FY 2005 FY 2006 FY 2007
IDCs DesignationsOption Years
$12.4B$10.1B
$11.5B
$30B
$2.5B
$5.7B
$3.1B
$18.7B
($ B
illio
n)
Backlog
Approximately 65% of Expected 2008 Approximately 65% of Expected 2008 Revenue is in Year End 2007 BacklogRevenue is in Year End 2007 Backlog
Washington Group Integration On-Plan
• Expected annual expense savings of $50-55M already identified• $50-55M annual run rate achieved as of April 1, 2008• Expect to capture approx. 90% of savings in calendar 2008• Expect to identify and capture additional expense synergies
in 2009
• Businesses have been realigned
• Corporate offices integrated – all redundant positions eliminated
• Retained all key operating staff
Long-Term Margin Improvement Opportunities
• Maintain and expand contract margins
• Operational efficiencies
• Reduction of corporate G&A as percentage of revenues
• Lower interest expense through debt reduction
Demonstrated Capacity to Pay Down Debt
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07
Total Debt / Total Capital
Debt from acquisition of
EG&G
Debt from acquisition of
Washington Group
Capital Structure Approach
• Goal to maintain prudent debt level given our business portfolio
• Debt/total capitalization ratio of 25%-30% is optimal, given our business portfolio and long-term outlook
• No current plan, or need, to issue equity to reduce debt or execute business plan
2008 Guidance
($M) 2007 2008E
Net Income $132.2 $187-197
Net Income (Excluding amortization)* $139.3 $218-228
Average Shares O/S (M) 56.3 83.5
EPS (GAAP) $2.35 $2.24-2.36
EPS (Excluding intangible amortization)* $2.42 $2.61-2.73
*See reconciliation table at the end of presentation for a reconciliation of non-GAAP financial measures to GAAP.
Investor Day 2008New York | April 22, 2008
Summary
• Strong track record of earnings growth and cash flow
• Current business mix offers balance and attractive long-term growth opportunities
• Washington Group integration is on plan
• There are opportunities for long-term margin improvement
• Reaffirming guidance for 2008
• Continued deleveraging in 2008
Reconciliation Table
($M) 2007 2008Net Income $132.2 $187-$197
Amortization of Intangible Assets $7.1 $31
EPS (GAAP) $2.35 $2.24-$2.36
EPS Impact of Amortization of Intangible Assets 0.07 $0.37
EPS (Excluding Amortization of Intangible Assets) $2.42 $2.61-$2.73
Net Income Excluding Amortization of Intangible Assets $139.3 $218-$228
Average Diluted Shares Outstanding 56.3 83.5
Our presentation includes net income and EPS guidance excluding the impact of the amortization of the intangible assets related to the Washington Group International (“WGI”) acquisition, which are financial measures not computed in accordance with generally accepted accounting principles ("GAAP"). We presented these amounts primarily to demonstrate the impact of the WGI acquisition on our projected fiscal year 2008 results as well as reflect additional financial metrics used by the investment community to measure companies in our industry. These non-GAAP measures may be useful to investors seeking to compare the expected performance of our underlying business with the actual performance of our business in prior periods. These non-GAAP measures should not be used as a substitute for financial measures prepared according to GAAP.
Investor Day 2008New York | April 22, 2008
Investor Day 2008New York | April 22, 2008
Investor Day 2008New York | April 22, 2008
Investor Day 2008New York | April 22, 2008
Investor Day 2008New York | April 22, 2008
Investor Day 2008New York | April 22, 2008