Feb 11, 2016

ZERO HARM DAY 2016

Message from Stuart Bradie, KBR President and Chief Executer Officer:
“Traditionally, year-end is a time for reflections, predictions and resolutions. I would like to take a moment to share my thoughts with you as we close out 2015.Since we announced our new strategy for KBR last year, I have been impressed and encouraged by your positive attitude, your dedication, and your belief in our company as we endeavored to transform KBR structurally and culturally. Despite incredible market challenges, the success we have had this year is a direct result of your commitment to our strategy. From a renewed spirit of One KBR teamwork across the company to improved financial performance, your hard work has paid off. And though the transformation continues, we can all take pride in how far we have come.

With the introduction of our Zero Harm initiative this year, we have seen significant improvement in our safety performance. KBR’s senior leadership has completed more than 70 safe tours, well over the targeted goal. Our Total Recordable Incident Rate (TRIR) has improved by 32%, and our 12-month rolling TRIR by 38%, major progress from where we were last year. And notably, recordable incidents are down 34%.

Through Zero Harm, our employees not only look out for themselves but also have the Courage to Care about the safety of those around them. Although our vastly improved record is an accomplishment for which we should all be proud and for which each employee’s commitment to working safely has contributed, when it comes to safety, nothing less than Zero Harm is success. The unfortunate tragedy this year where we lost one of our own should remind us all that safety is personal, and that we must continue to do everything we can to work safely all day, every day, to ensure our goal of zero incidences is achieved.

From a strategic perspective, we have had success maintaining our focus on winning the right work, executing on our commitments and driving our unnecessary costs. We are concentrating our efforts on seeking out opportunities for long-term customer value and success within our priority markets, hydrocarbons and international government services.
We are seeing wins across the business segments with projects and prospects for Engineering & Construction and with Technology & Consulting in LNG, ammonia, fertilizers, petrochemicals, and revamps. In Government Services, we have had some substantial awards and see opportunities in U.S. and U.K. government sectors.

To refocus on our core strengths, we have sold our Building Group and Infrastructure Americas business. And on the industrial services side, in an effort to seek new clients and expand offerings to current customers, we entered into a partnership to maximize opportunities for what is now our Brown & Root Industrial Services group.

Internally, we have simplified our corporate structure, embedding corporate functions in the businesses to reduce overhead and foster collaboration. We have also placed our business leads around the world where the opportunities are in order to maximize our potential for success and to create a more customer-focused business. Approval matrixes, policies and procedures have been streamlined to reduce bureaucracies and redundancies and to ensure consistency across all of our businesses and regions.

As far as predictions for 2016, what I have seen this year gives me tremendous confidence in the future of our company. Although we expect our markets will remain depressed and highly competitive next year, if we maintain our strategy, focus and cost consciousness, we will continue to be well-positioned for success. KBR is a great company with many more exciting chapters yet to be written.

Perhaps our greatest strengths as we pursue opportunities going forward are our experience and work ethic. We know our business. We know how to solve complex problems. We know how to collaborate with customers to develop solutions. And most of all we know how to roll up our sleeves, work together, and go beyond what’s expected to get the job done. That is the heart of our One KBR spirit and behaviors, which are the key to our success, and it is the essence of you, the people of KBR. Empowered, collaborative, committed, accountable, and passionate – our people are the foundation on which we will meet and conquer the challenges of the future.

My resolutions for KBR in 2016 are simple: to build on what we started. We will continue to execute our strategy and maintain our focus. We will strengthen our commitment to Zero Harm, not only because it creates a safer work environment, but also because our employees, communities and our stakeholders deserve it. We will invest in growing our people because that is where our future lies. We will build on the gains we have made with investors this year and continue to grow our shareholder base. We will pursue growth opportunities in a focused strategic way as we continue to make strides toward becoming a truly sustainable company.

I can’t end this message without a big thank you to all of you, our wonderful KBR employees. In the midst of our own business and cultural transformation and a major downturn in the oil and gas industry, you have worked hard and performed magnificently, delivering excellent customer service and positive financial results. I am immensely proud of all that we have accomplished in 2015 and I look forward to an exciting and successful 2016 working with all of you as One KBR.

Wishing all of you a safe and happy holiday and New Year.”
Announcement on holding Zero Harm Day in ZAO “KBR East”.
Zero Harm Day in ZAO “KBR East” will take place on February 26, 2016.
As part of morning safety talks, the company Management, Chief Specialists, and structural unit Managers will go to Company structural units with the same message on importance of “Zero Harm 24/7” concept. In late afternoon in a “Pine” conference hall on the 5th floor of SA-1, a special ceremony will take place devoted to the Zero Harm Day with recognition of the best employees who showed leadership in safety in 2015; hence, their non-indifferent and proactive approach resulted in significant improvements of working conditions, elimination of risks at workplaces, prevention of equipment failures, improvement of safety communication. Also awarded will be the most active participants of safety conduct audit and TSTI champions. Although the Day is devoted to a very serious matter, the format of the ceremony includes cooperation with the audience, mass games. We will be happy to see both Engineers and Workers at the ceremony.