Michael%20Baker%20Corporation%20Overview

1
Engineering Energy
MICHAEL BAKER CORPORATION
Investor Relations Update June 12, 2002
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, changes in management and acquisition
and corporate finance activity. These statements
are subject to market, regulatory, 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

• Q1 Earnings in Line with Revised Expectations
• Rising Insurance Costs Impacting Results
• On-Track to Achieve Year-end Estimates
• Revenue 430 - 440 million
• EPS 1.40 - 1.45
• No Significant Change in Litigation Environment
• Changes in Energy Management

4
Four-Point Strategy

• Maximize the growth potential of the Energy
  business
• Optimize the overall performance of the
  Engineering business
• Innovate by investing to enhance service delivery
  methods
• Leverage the relationships and skills of the
  entire company

5
Differentiation of Services

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

6
Energy

• Huber OPCOSM Contract in GOM
• Burlington El Paso Divestiture Programs Delayed
• Other OPCO Opportunities Pending
• Ops Engineering Business Expanding
• International Business in Transition Realignment
  Underway

7
Energy

• Management Changes
• Don Fusilli Acting President
• Realigned International Management
• Operations
• Business Development
• Search Firm Retained

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The Energy Value Steps
Total Asset Management

Supply Chain Management

OPCO

VALUE
Contract Labor

Training

Ops. Eng.
TIME
9
Core Engineering Service Offerings

• Transportation Engineering Services
• Highways
• Bridges (Structures)
• Program Management
• Asset Management
• Civil InfrastructureServices
• DoD / Federal Markets
• Water/Wastewater
• Cold Region Pipelines
• Asset Management

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Engineering

• Delayed/Deferred Projects Getting Underway
• Transportation Budget Constraints Continue
• Federal
• Virginia
• Texas
• Other Areas Showing Growth
• Department of Defense
• Federal Civilian
• Emergency Management
• Homeland Security
• Water/Wastewater

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Total Revenues
430-440m
Energy
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Operating Performance(in Thousands of )
1999 2000 2001
TOTAL CONTRACT REVENUES
Total Reported 506,012 390,710 403,222
Less Non-Core 223,236 41,625 1,372

ENERGY 80,158 120,708 158,236
ENGINEERING 202,618 228,377 243,614

Total Core 282,776 349,085 401,850

TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums)
Total Reported (511) 17,543 31,436
-.1 4.5 7.8

ENERGY 4,252 9,759 12,842
6.6 8.1 8.1
ENGINEERING 12,544 16,007 18,582
6.2 7.0 7.6

Total Core 17,796 25,766 31,424
6.4 7.4 7.8
Adjusted for 1 Million Non-Recurring Charge
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Q1/Q1 Revenues
Q1/Q1 Total Reported/Engineering/Energy Revenues
37.6
37.5
25.6
57.7
58.3
57.0
Energy
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Operating Performance Q1/Q1(in Thousands of )
2000 2001 2002
TOTAL CONTRACT REVENUES
Total Reported 108,295 94,950 95,922
Less Non-Core 25,016 456 -

ENERGY 25,567 37,477 37,578
ENGINEERING 57,712 57,017 58,344

Total Core 83,279 94,494 95,922

TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums) TOTAL OPERATING INCOME (Pre-Corp. O/H and I/C Ins. Premiums)
Total Reported 5,563 6,536 5,602
5.1 6.9 5.8

ENERGY 1,496 2,768 1,680
5.9 7.4 4.5
ENGINEERING 3,722 3,596 4,233
6.4 6.3 7.3

Total Core 5,218 6,364 5,913
6.3 6.7 6.2
Adjusted for 1 Million Non-Recurring Charge
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Balance Sheet(in millions of )
1999 2000 2001
ASSETS
Cash 3.7 9.1 18.5
Short-Term Investment - 9.0 -
A/R 77.4 67.7 67.6
Cost in Excess of Billing 26.6 20.5 25.3

PPE 17.1 10.1 10.3
Intangibles 14.6 10.8 9.8
Other 15.6 10.2 20.1
155.0 137.4 151.6
LIABILITIES
Current Portion LTD 3.5 2.2 -
Trade A/P 28.9 25.7 21.9
Accrued Other 62.9 59.1 68.2

Long-Term Debt 14.9 0.1 -

Owners Equity 44.8 50.3 61.5
155.0 137.4 151.6
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EPS Growth
2000 2001 2002 Est.
Reported
EPS .65 1.33 1.40 - 1.45

Pro Forma EPS
Core Operating Income 25,766 31,424
Less Corporate Overhead (7,715) (11,058)
Operating Income 18,051 20,366

Provisions for Income Tax (47 for 1999, 51 for 2001 and 45.5 for 2001) (9,206) (9,267)
8,845 11,099

Pro Forma EPS 1.07 1.32 1.40 - 1.45
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Stock Performance (24 mos.)
18
Financial Highlights

• Debt-free, Leveragable Balance Sheet
• Eliminated Series B Super Voting Shares
• Secured 40 Million Credit Facility
• Added 7 New Institutional Holders
• 1.3 Million Shares

19
Engineering Energy
MICHAEL BAKER CORPORATION
Investor Relations Update