MICHAEL BAKER CORPORATION
April 17, 2001
2001 IPAA Oil & Gas Investment Symposium
e ngineeringe nergy
andsolutions
Presented by
2001 IPAA
Engineering & EnergySafe 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.
2001 IPAA
Engineering & EnergyProfile/Summary
AMEX - listed: BKR Founded in 1940; Publicly Traded Since 1969 A Leader in Professional Services
Oil & Gas Production O&M Transportation and Civil Infrastructure Engineering
Large Global Markets Under-followed Micro-Cap, Valued at 3x
EBITDA
2001 IPAA
Engineering & EnergyEngineering
2001 IPAA
Engineering & EnergyEnergy
2001 IPAA
Engineering & Energy
OPCOe-OPS
Manpower Supply
Knowledge Management
T2B
Decisional
Price-Sensitive
Business Model Evolution
Transactional
2001 IPAA
Engineering & EnergyGrowth Drivers
Outsourcing and Industry Growth Outsourcing and Industry Growth Commitments of Major and Independent Oil Commitments of Major and Independent Oil and Gas Producersand Gas Producers
Political and Economic Requirements to Political and Economic Requirements to Develop Nationalized WorkforceDevelop Nationalized Workforce
Favorable Environment of Cost Per Barrel Favorable Environment of Cost Per Barrel of Oilof Oil
Deregulation of Electric Power IndustryDeregulation of Electric Power Industry
2001 IPAA
Engineering & EnergyEnergy
Houston
Lafayette
London
Lagos
Caracas
Bangkok
Anchorage
Abu Dhabi
Supply Chain Management
Mechanical MaintenanceO&M Services
Operations Engineering
Manpower
Training
Recruiting
Major and Large Independent Oil & GasU.S. Electric Utilities and I.P.P.
LOCATIONSERV
ICES
CUSTOMERS Abu Dhabi
Challenge Us
2001 IPAA
Engineering & EnergyOur Domestic Market
2001 IPAA
Engineering & EnergyOPCOSM
Operations
SupplyChain
HSE OPCO
Training &Development
Maintenance
Management
HumanResources
SM
BusinessGrowth
2001 IPAA
Engineering & EnergyOPCOSM
Total GOM OPCO-Type Market: $3.0b
$10.0
$37.5
$60.0
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
1999 2000 2001
Baker OPCO Revenues in $ Millions
(Estimated)
2001 IPAA
Engineering & EnergyOur Domestic Market
2001 IPAA
Engineering & EnergyOPCOSM Value Drivers
Penetrate Cost Floor More Efficient Use of Critical Resources Maintain HSE Excellence Cost Savings of 10-20% Performance-based Contracts
2001 IPAA
Engineering & Energy
OPCOSM
Client
BakerVALUE CREATIONSHARED SAVINGS
LEVERAGED ECONOMIES of SCALE
Fixed Fee IncomeAnnual Performance Bonus
Sharing Cost Savings
Reduced Operating Costs
Increased RevenuesIncreased Efficiency
OPCOSM Value Drivers
2001 IPAA
Engineering & Energye-OPS
Fully-Integrated, Operations and Maintenance System for Upstream Energy Industry
Alliance: Baker - Content SAIC - Technology, Telecom and Knowledge Management
Global Market - $160 Billion Benefits
Shortened Cycle Time Improved Operating Performance Lower Cost of Operation Greater Asset Return
2001 IPAA
Engineering & EnergyTotal Revenues
$506.0
$391.0
$521.3
$349$288
$247
$0
$100
$200
$300
$400
$500
$600
1998 1999 2000
Dol
lars
in M
illio
ns
Revenues Continuing Business Energy
2001 IPAA
Engineering & EnergyOperating Performance(in Thousands of $)
‘98 ‘99 ‘00NET REVENUES
Total Reported $521,270 $506,012 $390,710Less Non-Core 274,249 224,132 42,018
Energy 68,607 80,158 120,708Engineering 178,414 201,722 227,984
Total Core 247,021 281,880 348,692
TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums)Total Reported 7,075 (511) 17,543
% 1.4% -.1% 4.5%
Energy 5,297 9,314% 7.7% 6.8% 7.7%
Engineering 13,796 13,356 16,783% 7.7% 6.6% 7.4%
Total Core $19,093 $18,827 $26,097% 7.7% 6.7% 7.5%
Adjusted for $1 Million Non-Recurring Charge
5,471
2001 IPAA
Engineering & EnergyEPS Growth
‘98 ‘99 ‘00Reported
EPS $(.30) $(1.00) $.65
Pro Forma EPSCore Operating Income $19,093 $17,827 $26,097Less Corporate Overhead (8,744) (7,664) (7,715)Operating Income 10,349 10,163 18,382
Provision for Income Taxes(47% Rate for 1998 & 1999 and51% Rate for 2000) (4,864) (4,777) (9,375)
5,485 5,386 9,007
Pro Forma EPS $.67 $.66 $1.09
2001 IPAA
Engineering & EnergyConclusion
Under-followed Micro-Cap, Valued at 3x EBITDA
A Leader in Professional Services Oil & Gas Production O&M Transportation and Civil Infrastructure Engineering
Expanding Outsourcing Trend in Core Business
OPCOSM Model Driving Energy Segment Growth and Margin Improvement
MICHAEL BAKER CORPORATION
April 17, 2001
2001 IPAA Oil & Gas Investment Symposium
e ngineeringe nergy
andsolutions
Presented by
2001 IPAA
Engineering & Energy
‘98 ‘99 ‘00
Net Income $(2.4) $(8.2) $5.4 Depreciation & Amortization 5.0 7.4 7.1 Other (4.0) 1.9 (0.1)
Cash from Operations (1.4) 1.1 124
Capital Expenditures (10.6) (5.3) (2.9)Acquisition/Investments (.8) (4.9) (9.0)Share Repurchase (.8) - -Proceeds from Sale of Assets/Stock Options - - -15.0NET Borrowings (Repayments) 2.7 7.8 (10.1)
NET Increase (Decrease) in Cash $(10.9) $(1.3) $5.4
Cash Flow(in millions of $)
2001 IPAA
Engineering & Energy
‘98 ‘99 ‘00ASSETSCash $5.0 $3.7 $9.1Short-Term Investment - - 9.0A/R 82.7 78.0 68.0Cost in Excess of Billing 22.4 20.8 16.1
PPE 17.5 17.1 10.1 Intangibles 7.5 14.6 10.8 Other 16.8 15.0 10.3
151.9 149.2 133.4LIABILITIESCurrent Prt LTD .8 3.5 2.2Trade A/P 43.4 28.9 25.7Accrued Other 51.7 57.1 55.1
Long Term Debt 3.1 14.9 0.1
Owners’ Equity 52.9 44.8 50.3$151.9 $149.2 $133.4
Balance Sheet(in millions of $)