Investor%20Relations%20Presentation

1
MICHAEL BAKER CORPORATION
2001

• Investor Relations Presentation

e ngineering
and
e nergy
solutions
2
Safe 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, and acquisition and corporate finance
activity. These statements are subject to
market, 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.
3
Summary / Highlights

• Leader in Professional Services
• Oil Gas Production OM
• Transportation and Civil Infrastructure
  Engineering
• Positioned to Accelerate Margin Growth, Led by
  Energy Segment
• Focused on Two Segments with New Management Team
  in Place
• Recognized Expertise in Transportation, Pipeline
  and Power Generation Markets
• Under-followed Micro Cap Valued at 4x EBITDA

4
Decade of Performance
5
Core Energy Service Offerings

• Oil Gas
• Operations Maintenance
• Competency-Based Training
• Operations Engineering
• Supply Chain Management

• Power
• Operations Maintenance
• New Equipment Installation
• Outage Planning/Overhauls
• Engineering / Start-up Assistance

6
Differentiation of Services

• Energy
• Integrated Services and Solutions for Global OG
  Upstream Production Operations
• Competency-Based Training and Nationalization
  Programs
• OPCOSM

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OPCOSM
OPCO Integrated Decision-making in Production
Operations
Management
Operations
Maintenance
Network Growth
OPCO
Supply Chain Management
HSE
Production Operations Functions and Critical
Decisions
Human Resources
Training Development
8
Growth Drivers
Outsourcing Trends
GOM
10 GOM Outsourced OM Market
4 bil. Total GOM Market
International
? Intl. Outsourced OM Market
? bil. Total Intl. Market
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Growth Drivers

• Energy
• Outsourcing and Industry Growth Commitments of
  Major and Independent Oil and Gas Producers
• Political and Economic Requirements to Develop
  Nationalized Workforce
• Favorable Environment for Fossil Fuel Sources
• Bush Administration Energy Proposal
• Deregulation of Electric Power Industry

10
Energy Growth Drivers
Fixed Fee Income Annual Performance Bonus Sharing
Cost Savings
Baker
VALUE CREATION SHARED SAVINGS LEVERAGED ECONOMIES
of SCALE
OPCOSM
Client
Reduced Operating Costs
Increased Revenues Increased Efficiency
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Our Potential Market
12
Our Served Market
13
OPCOSM
Top Producers in the GOM
OPCO Total Operated Production
14
eOPS

• Fully-Integrated, Operations and Maintenance
  System for Upstream Energy Industry
• Alliance
• Baker - Content
• SAIC - Technology, Telecom and Knowledge
  Management
• Deloitte - Planning, Strategy and Analysis
• Global Market - 160 Billion
• Benefits
• Shortened Cycle Time
• Improved Operating Performance
• Lower Cost of Operation
• Greater Asset Return

15
Energy - Recent Contracts
CLIENT INITIAL TERM INITIAL CV
Chevron (Thailand) 5 YR. 25m Burlington
Resources 3 YR. 60m El Paso Production 3
YR. 64m Nigeria LNG Limited 3 YR. 10m BP
(Various) 5m Magnum Hunter gt1m Panaco
gt1m EnerVest gt1m Mitsubishi Heavy
Industries Sonatrach
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Core Engineering Service Offerings

• Transportation Engineering Services
• Highways
• Bridges (Structures)
• Airports
• Civil InfrastructureServices
• Cold Region Pipelines
• Water/Waste Water
• Power / Utilities

17
Alignment of Services

• Engineering
• Large Infrastructure
• Design Market Presence
• 17th Transportation
• 19th Highways
• 12th Bridges
• 23rd Airports

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Growth Drivers

• Transportation TEA-21

3rd
9th
4th
11th
7th
8th
12th
35th
1st
10th
29th
6th
23rd
2nd
5th
22nd
Ranking TEA-21 Funded States
Baker Office
Source Projected TEA-21 Apportionments
1998-2003, ENR (08/00)
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Growth Drivers

• Transportation TEA-21

Total Federal Authorizations
Source Federal Highway Administrations, U.S.
Department of Transportation
20
Growth Drivers

• Transportation AIR-21

10th (Tied)
10th (Tied)
14th
18th
9th
3rd
Ranking AIR-21 Funded States
Baker Office
Source Annual Airport Grant Entitlement Funds,
ENR (08/00)
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Growth Drivers

• Transportation AIR-21

AIR-21 Conference Agreement Funding Levels
01-03Compared to FY 2000 Enacted Level ( in
billions)
Source U.S. Department of Transportation
22
Growth Drivers
Oil Gas Pipelines

• Cold Regions Expertise
• Trans-Alaska Pipeline
• Alpine Extension - Colville River
• Sakhalin Island
• Alas-Can Project

23
Competitive Barriers to Entry

• Energy
• Customer Relationships
• Content and Information Delivery Systems
• Implementation/Delivery Capability
• OPCO Network
• Engineering
• Alignment of Services to Meet Customer Needs
• Long-Term Relationships

24
Key Customer Relationships

• Engineering

• Energy

25
Blur the Segments
OM
Alaska
Engineering Design
GIS Database --Facilities Management
Aberdeen
CMMS Implementation
OM
Nigeria
Environmental Assessmentand Design
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Acquisition Growth Opportunities

• Geographic and Capacity Expansion
• Energy Opportunities
• Engineering Opportunities
• Additional Capabilities
• Energy
• Training Program Development
• Maintenance Management Systems
• Engineering
• Power
• Water/Wastewater
• Asset Management

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Total Revenues
Energy
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Revenues
Q1/Q1 Total Reported/Engineering/Energy Revenues
35.1
25.6
19.3
57.6
57.0
43.6
Energy
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Operating Performance(in Thousands of )
5,471
Adjusted for 1 Million Non-Recurring Charge
30
Operating Performance (Q1/Q1)(in Thousands of )
31
Cash Flow(in millions of )
32
Balance Sheet(in millions of )
33
EPS Growth
2001 Estimate 1.25 - 1.30
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Ownership
Holders Shares Baker ESOP 3,420,821Goldm
an Sachs Asset Management 720,900 Lord,
Abbett Co. 525,200 Dimensional Fund
Advisors Inc. 478,214 Seacor Smit, Inc.
340,000 Management/Insiders
296,445 Pennsylvania Public School ERS
236,400 Corbyn Investment Management 141,600
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Conclusion

• Leader in
• Oil Gas Production OM
• Transportation and Civil Infrastructure
  Engineering
• Energy Market Conditions Catalyst for Significant
  Growth
• Investment in Transportation Infrastructure
  Providing Substantial Opportunity
• Debt-free, Leverageable Balance Sheet
• Under-followed Micro Cap Valued at 4x EBITDA

36
MICHAEL BAKER CORPORATION
2001

• Investor Relations Presentation

e ngineering
and
e nergy
solutions