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The Shaw Group Inc.
               FY 2008 Annual Meeting

                     Wednesday, January 28, 2009

                          J.M. Bernhard Jr.
             Chairman, President & Chief Executive Officer
54M012008B
Forward Looking Statements &
                           Regulation G Disclosure
                 This presentation contains forward-looking information and statements within the
                 meaning of the Private Securities Litigation Act of 1995. The words “believe,” “expect,”
                 “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar
                 expressions are intended to identify forward-looking statements, which are generally not
                 historical in nature. These forward-looking statements are based on our current
                 expectations and beliefs concerning future developments and their effect on us.
                 However, the absence of these words does not mean that the statements are not
                 forward-looking. Our forward-looking statements involve significant risks and
                 uncertainties, some of which are beyond our control and actual results may differ
                 materially from those expressed or implied by forward-looking statements as a result of
                 many factors or events, including current economic conditions and resulting capital
                 constraints, as well as the factors we discuss or refer to in the “Risk Factors” section of
                 our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
                 Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC)
                 and on our website under the heading “Forward-Looking Statements.”

                 This presentation contains non-GAAP measures as defined by the SEC rules and
                 regulations. A reconciliation of these measures to the most directly comparable GAAP
                 measures is included in the attached appendix and on our Web site at
54M012008B




                 www.shawgrp.com in the Investor Relations section under “Regulation G Disclosures.”

             2
Summary of FY 2008
             •   Company continued to significantly grow its operations

             •   Ranked “#1 in Power” by ENR magazine

             •   Signed first 3 nuclear EPC contracts (one subsequent to fiscal
                 year end)

             •   Record financial results: Revenue, EBITDA, Net Income, EPS,
                 Operating Cash Flow, and Cash Balance

             •   Received credit rating upgrades from Moody’s and S&P

             •   Increased credit facility from $850M to $1.05B
54M012008B




             •   Entering Fiscal 2009 with a strong backlog

             3
Selected Major Projects Underway In FY 2008




                 MOX – South Carolina

                                                                              SHARQ – Saudi Arabia




                                                IHNC Hurricane Protection –
                                                                              AP1000 Nuclear - China
                                                Louisiana
54M012008B




                 Cleco Rodemacher – Louisiana


             4

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financeearningsbusiness
FY 2008: Financial Results
                     Record                                                    FY 2008                                FY 2007
                         (in millions, except per      As Reported         Westinghouse             Actuals          Actuals
                         share data)                                         Segment              Excluding        Excluding
                                                                                                 Westinghouse*    Westinghouse*


                         Revenue                      $        6,998.0     $               0.0   $      6,998.0   $       5,723.7
                         Gross Profit                            586.0                     0.0           586.0             375.4
                         EBITDA*                                 316.6                (45.9)             362.5              92.1
                         Net Income                              140.7                (50.7)             191.4              19.4
                         Diluted EPS                               1.67               (0.60)              2.27              0.24
                         Operating Cash Flow                     623.9                (25.9)             649.8             477.4
                         New Awards                            8,282.7                     N/A          8,282.7          10,941.1

                              •• Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M
                                 Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M
                              •• Record EBITDA, Net Income, and EPS
                                 Record EBITDA, Net Income, and EPS
                              •• Record Operating Cash Flow; total cash balance $937M
                                 Record Operating Cash Flow; total cash balance $937M
                              •• Strong new orders result in a $15.6 billion backlog entering 2009
                                 Strong new orders result in a $15.6 billion backlog entering 2009
02M102007D




                 *See Appendices for a reconciliation to the corresponding GAAP measure.
             5
Shaw Experienced Significant EBITDA Growth
                                In FY 2008
                                                                                                                                $363
                  ($ in millions)



                                      Increase of nearly 300% year-over-year
                                       Increase of nearly 300% year-over-year

                               69% compound annual growth over last 4 years
                               69% compound annual growth over last 4 years


                                                                                  $124
                                                                                                         $92
                                                            $90

                                      $45




                                FY 2004                FY 2005               FY 2006                FY 2007                  FY 2008
54M012008B




                 Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization;
                 values for FY2007 and FY2008 exclude the Westinghouse segment.

                 See Appendices for a reconciliation to the corresponding GAAP measure.
             6
Cash and Debt at End of FY08
                                                                                                                           Record
                                                                                                                                        937
                                 ($ in millions)


                                          Cash
                                          Debt
                                                                                                                              688
                                                                                                               663



                                                                                                482


                                                                                361


                                                                 218
                                   178            165
                                   107
                                                   86
                                                                   28                            28
                                                                                  17                            18                       10
                                                                                                                               13


                               Q-1 FY07        Q-2 FY07       Q-3 FY07       Q-4 FY07       Q-1 FY08        Q-2 FY08       Q-3 FY08   Q-4 FY08

                                                    Operating Cash Flow of $624M for FY 2008
                                                    Operating Cash Flow of $624M for FY 2008
02M102007D




                 Notes:
                 1. Cash balance represents the sum of cash, cash equivalents and restricted cash.
                 2. Total debt excludes Japanese Yen-denominated bonds secured by Investment in Westinghouse. See Appendices for a
                    reconciliation to the corresponding GAAP measure.
             7
Consolidated Backlog and Backlog Conversion
                                          (as of 8/31/08)
                           Backlog by Business Segment                          Expected Backlog Conversion

                   ($ in billions)
                    Consolidated
                                                                                   Next
                    Fabrication & Manufacturing
                                                                       $15.6                         13-24 months
                                                                                12 months
                    Energy & Chemicals                       $14.3                                       27%
                                                                         $0.8      37%
                    Environmental & Infrastructure
                                                               $0.7      $2.2
                                                                                             $4.2B
                    Maintenance
                                                               $2.6
                    Fossil & Nuclear
                                                                                     $5.7B
                                                     $9.1                $5.1
                                                                                              $5.7B
                                                               $2.6
                                                     $0.4
                                         $6.7        $1.4
                                                               $1.7
                             $5.8                                        $1.4
                   $4.8                              $2.8                                       Greater than
                                                                                                 24 months
                                                                         $6.1
                                                               $6.7
                                                     $1.3                                           36%
                                                     $3.2



                 FY 2003   FY 2004     FY 2005    FY 2006   FY 2007   FY 2008

                   Backlog excludes majority of domestic nuclear work expected to be performed under signed
                   Backlog excludes majority of domestic nuclear work expected to be performed under signed
54M012008B




                             EPC contracts (Georgia Power, SCE&G, and Progress Energy Florida)
                              EPC contracts (Georgia Power, SCE&G, and Progress Energy Florida)


             8

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Fossil and Nuclear Projects Present
                         Significant Upside To Backlog At 8/31/2008
                 Backlog + Projects Where Shaw Has Been Selected But Work Has Not Been Released
                                                                                      $37.6
                 ($ in billions)
                  Consolidated
                  Fabrication & Manufacturing                                                  • RWE
                                                                                               • Progress
                  Energy & Chemicals
                                                                                                 Energy
                  Environmental & Infrastructure                                               • SCE&G /
                                                                                      $22.0
                  Maintenance                                                                    Santee Cooper
                                                                                               • Southern
                  Fossil & Nuclear                                                               (Georgia
                  Fossil & Nuclear – selected but                                                Power)
                  projects not in backlog

                                                                           $14.3              Total - $15.6
                                                                                       $0.8
                                                                                       $2.2

                                                                 $9.1
                                                                                       $5.1
                                                       $6.7
                                       $5.8
                        $4.8                                                           $1.4

                                                                                       $6.1
54M012008B




                    FY 2003        FY 2004          FY 2005   FY 2006   FY 2007    FY 2008

                        Full Spectrum of Shaw’s Workload Approaching $40B
                        Full Spectrum of Shaw’s Workload Approaching $40B
             9
Shaw Has Created Significant
                            Long-Term Value For Shareholders
                                                                                                        End of FY 2008
                                      SGR vs. S&P 500: Sept. 1, 1999 – Jan. 27, 2009
             700%

                                                                                              SGR
             600%

                                               SGR up nearly 175% over past 10+ years, even
                                               SGR up nearly 175% over past 10+ years, even
             500%
                                                    when considering the recent economic
                                                    when considering the recent economic
                                               downturn, as compared to the S&P 500, which
                                               downturn, as compared to the S&P 500, which
             400%
                                                is down approx. 40% during the same period
                                                 is down approx. 40% during the same period

             300%


             200%


             100%
                                                                                               S&P 500
                  0%


             -100%
02M102007D




                   9/1/99    9/1/00   9/1/01     9/1/02   9/1/03   9/1/04   9/1/05   9/1/06    9/1/07     9/1/08


             10
FY08 Summary
                  • 2008 was a strong year for Shaw
                    with record earnings and cash flow
                  • Backlog positions us for a stronger
                    year in 2009
                  • First EPC Nuclear projects remain
                    on track
                  • Our focus on regulated electric
                    utilities, national and international
                    oil companies, and the U.S.
                    Government should continue to
                    provide us with stability through
                    these tough economic times
02M102007D




             11
FY2009 Guidance
              Communicated on Q-4 FY08 Earnings Call
                  Metric                                        Guidance

                  Revenue                                   $7.1 - $7.3 Billion

                  Diluted EPS, excluding
                                                         $2.50 - $2.70 per share
                  Westinghouse

                  Operating Cash Flow                      $250 - $300 Million

                                Earnings expected to be driven by projects in
                                Earnings expected to be driven by projects in
                                backlog from Fossil & Nuclear, F&M, and E&C.
                                 backlog from Fossil & Nuclear, F&M, and E&C.
                                 Operating Cash Flow expected to be driven
                                 Operating Cash Flow expected to be driven
02M102007D




                                        primarily by Fossil & Nuclear.
                                         primarily by Fossil & Nuclear.


             12

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The Shaw Group Inc.
             FY 2008 Annual Meeting

             Regulation G Appendices

                Wednesday, January 28, 2009
02M102007D
Appendix 1: EBITDA Reconciliation
                                      FY 2008

                                                                                          FY 2008

                                                                                       Westinghouse         Excluding
                        (in millions)                                 Consolidated       Segment           Westinghouse

                        Net Income (Loss)                         $           140.7   $           (50.7)   $       191.4
                        Interest Expense                                       46.0                37.4              8.6
                        Depreciation and Amortization                          47.1                  -              47.1
                        Provision for Income Taxes                             71.4               (42.2)           113.6
                        Income Taxes on Unconsolidated Subs                    11.4                 9.6              1.8
                        Income Taxes on Discontinued Ops                         -                   -                -
                        EBITDA                                    $           316.6   $           (45.9)   $       362.5
02M102007D




                  Note: EBITDA is defined as earnings before interest expense, income taxes,
                  depreciation and amortization. EBITDA is an important financial measure used by The
                  Shaw Group Inc. to assess performance.

             15
Appendix 1: EBITDA Reconciliation
                                      FY 2007

                                                                                            FY 2007
                                                                                        Westinghouse        Excluding
                        (in millions)                                 Consolidated        Segment          Westinghouse

                        Net Income (Loss)                         $            (19.0)   $         (38.4)   $        19.4
                        Interest Expense                                        43.4               30.6             12.8
                        Depreciation and Amortization                           41.3                 -              41.3
                        Provision for Income Taxes                              10.7              (26.1)            36.8
                        Income Taxes on Unconsolidated Subs                    (16.8)               1.4            (18.2)
                        Income Taxes on Discontinued Ops                          -                  -                -
                        EBITDA                                    $             59.6    $         (32.5)   $        92.1
02M102007D




                  Note: EBITDA is defined as earnings before interest expense, income taxes,
                  depreciation and amortization. EBITDA is an important financial measure used by The
                  Shaw Group Inc. to assess performance.

             16

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statementsheetresults
Appendix 1: EBITDA Reconciliation
                                 FY 2004- FY 2006

                                                                                FY 2004         FY 2005          FY 2006
                        (in millions)
                        Net Income (Loss)                                      $      (33)    $         16   $        50
                        Interest Expense                                               38               29            19
                        Depreciation and Amortization                                  59               28            35
                        Provision for Income Taxes                                    (15)              17            18
                        Income Taxes on Unconsolidated Subs                                                            2
                                                                                        -               -
                        Income Taxes on Discontinued Ops                               (4)              -              -
                        EBITDA                                                 $       45     $         90   $       124
02M102007D




                  Note: EBITDA is defined as earnings before interest expense, income taxes,
                  depreciation and amortization. EBITDA is an important financial measure used by The
                  Shaw Group Inc. to assess performance.

             17
Appendix 2: FY 2008 Reconciliation of
                            Income excluding Westinghouse
                                                                                                                                                      FY 2008
                                  (in millions, except per share data)
                                                                                                                                         Twelve months ended August 31, 2008
                                                                                                                                                   Westinghouse          Excluding
                                                                                                                                  Consolidated        Segment         Westinghouse

                                  Revenues                                                                                             $6,998.0              $0.0          $6,998.0
                                  Cost of revenues                                                                                      6,412.0               0.0           6,412.0
                                   Gross profit                                                                                           586.0               0.0             586.0
                                  General and administrative expenses                                                                     276.3               0.9             275.4
                                  Operating income (loss)                                                                                 309.7              (0.9)            310.6
                                  Interest expense                                                                                         (8.6)              0.0              (8.6)
                                  Interest expense on JPY-denominated bonds including accretion and amortization                          (37.4)            (37.4)              0.0
                                  Interest income                                                                                          20.9               0.0              20.9
                                  Foreign currency translation gains (losses) on JPY-denominated bonds, net                               (69.7)            (69.7)              0.0
                                  Other foreign currency transaction gains (losses), net                                                    6.6               0.0               6.6
                                  Other income (expense), net                                                                              (1.0)              0.1              (1.1)
                                                                                                                                          (89.2)           (107.0)             17.8
                                  Income (loss) before income taxes, minority interest, earnings (losses) from
                                     unconsolidated entities (b)                                                                          220.5            (107.9)            328.4
                                  Provision (benefit) for income taxes (a)                                                                 71.4             (42.2)            113.6
                                  Income (loss) before minority interest and earnings (losses) from unconsolidated entities               149.1             (65.7)            214.8
                                  Minority interest (c)                                                                                   (26.1)              0.0             (26.1)
                                  Income from 20% Investment in Westinghouse, net of income taxes                                          15.0              15.0               0.0
                                  Earnings (losses) from unconsolidated entities, net of income taxes                                       2.7               0.0               2.7
                                  Net income (loss)                                                                                      $140.7            ($50.7)           $191.4

                                  Net income (loss) per common share:
                                    Basic income (loss) per common share                                                      $            1.71    $        (0.62)   $         2.33
                                    Diluted income (loss) per common share                                                    $            1.67    $        (0.60)   $         2.27

                                  Weighted average shares outstanding:
                                   Basic                                                                                                   82.1              82.1              82.1
                                   Diluted:                                                                                                84.2              84.2              84.2
02M102007D




                                   Effective tax rate [a/(b+c)]                                                                            37%               39%               38%




             18 Note: Presents our income statement excluding the Investment in Westinghouse segment
Appendix 2: FY 2007 Reconciliation of
                            Income excluding Westinghouse
                              (in millions, except per share data)                                                                                FY 2007
                                                                                                                                     Twelve months ended August 31, 2007
                                                                                                                                               Westinghouse          Excluding
                                                                                                                              Consolidated        Segment         Westinghouse

                              Revenues                                                                                             $5,723.7              $0.0          $5,723.7
                              Cost of revenues                                                                                      5,348.3               0.0           5,348.3
                               Gross profit                                                                                           375.4               0.0             375.4
                              General and administrative expenses                                                                     274.5               2.9             271.6
                              Operating income (loss)                                                                                 100.9              (2.9)            103.8
                              Interest expense                                                                                        (12.8)              0.0             (12.8)
                              Interest expense on JPY-denominated bonds including accretion and amortization                          (30.6)            (30.6)              0.0
                              Interest income                                                                                          13.8               0.0              13.8
                              Foreign currency translation gains (losses) on JPY-denominated bonds, net                               (33.2)            (33.2)              0.0
                              Other foreign currency transaction gains (losses), net                                                   (5.3)              0.0              (5.3)
                              Other income (expense), net                                                                               0.3               0.0               0.3
                                                                                                                                      (67.8)            (63.8)             (4.0)
                              Income (loss) before income taxes, minority interest, earnings (losses) from
                                 unconsolidated entities and loss from and impairment of discontinued operations (b)                   33.1             (66.7)             99.8
                              Provision (benefit) for income taxes (a)                                                                 10.7             (26.1)             36.8
                              Income (loss) before minority interest and earnings (losses) from unconsolidated entities                22.4             (40.6)             63.0
                              Minority interest (c)                                                                                   (17.7)              0.0             (17.7)
                              Income from 20% Investment in Westinghouse, net of income taxes                                           2.2               2.2               0.0
                              Earnings (losses) from unconsolidated entities, net of income taxes                                     (25.9)              0.0             (25.9)
                              Net income (loss)                                                                                      ($19.0)           ($38.4)            $19.4

                              Net income (loss) per common share:
                                Basic income (loss) per common share                                                      $           (0.24)   $        (0.48)   $         0.24
                                Diluted income (loss) per common share                                                    $           (0.24)   $        (0.48)   $         0.24

                              Weighted average shares outstanding:
                               Basic                                                                                                   79.9              79.9              79.9
                               Diluted:                                                                                                79.9              79.9              81.8
02M102007D




                               Effective tax rate [a/(b+c)]                                                                            70%               39%               45%




             19 Note: Presents our income statement excluding the Investment in Westinghouse segment
Appendix 3: Total Debt Reconciliation


                                                                                      Restated     Restated                               Restated     Restated     Restated
             (in millions)                                              Q4 FY 2008   Q3 FY 2008   Q2 FY 2008   Q1 FY 2008   Q4 FY 2007   Q3 FY 2007   Q2 FY 2007   Q1 FY 2007

             Financed Insurance Premiums                                      $0.0         $2.4         $7.4        $11.1         $0.0         $3.1        $6.6        $10.4
             Current maturities of long-term debt                              4.5          4.4          2.7          4.6          5.4          8.8         9.1          9.5
             Short-term revolving line of credit                               0.0          0.0          1.0          2.3          0.2          2.8         2.7          2.5
             Current portion of obligations under capital leases               1.5          1.8          1.9          2.2          2.1          2.2         2.2          1.8
             Short-term debt and current maturities of long-term debt          6.0          8.6         13.0         20.2          7.7         16.9        20.6         24.2
             Revolving line of credit                                          0.0          0.0          0.0          0.0          0.0          0.0        39.0         53.0
             Long-term debt, less current maturities                           3.3          3.5          3.8          6.6          7.5          8.6        23.8         26.7
             Obligations under capital leases, less current portion            0.3          0.4          0.8          1.3          1.8          2.2         2.8          3.0
             Long-term debt, less current maturities                           3.6          3.9          4.6          7.9          9.3         10.8        65.6         82.7
             Japanese Yen-denominated long-term bonds secured by
             Investment in Westinghouse, net                               1,162.0      1,197.1      1,187.8      1,145.6      1,087.4      1,033.9      1,048.3      1,080.6

             Total Debt                                                   $1,171.6     $1,209.5     $1,205.4     $1,173.7     $1,104.4     $1,061.6     $1,134.5     $1,187.5
             Less: Westinghouse Debt                                       1,162.0      1,197.1      1,187.8      1,145.6      1,087.4      1,033.9      1,048.3      1,080.6
             Total Debt, excluding Westinghouse                               $9.6        $12.5        $17.6        $28.1        $17.0        $27.7        $86.2      $106.9
02M102007D




                      Note: To show our total debt excluding the Japanese Yen-denominated bonds
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shaw group 8C04E297-E3DD-4F1E-8BB2-56C5BB51CEDA_SGR_AnnualShareholdersMeeting012809

  • 1. The Shaw Group Inc. FY 2008 Annual Meeting Wednesday, January 28, 2009 J.M. Bernhard Jr. Chairman, President & Chief Executive Officer 54M012008B
  • 2. Forward Looking Statements & Regulation G Disclosure This presentation contains forward-looking information and statements within the meaning of the Private Securities Litigation Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their effect on us. However, the absence of these words does not mean that the statements are not forward-looking. Our forward-looking statements involve significant risks and uncertainties, some of which are beyond our control and actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including current economic conditions and resulting capital constraints, as well as the factors we discuss or refer to in the “Risk Factors” section of our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission (SEC) and on our website under the heading “Forward-Looking Statements.” This presentation contains non-GAAP measures as defined by the SEC rules and regulations. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached appendix and on our Web site at 54M012008B www.shawgrp.com in the Investor Relations section under “Regulation G Disclosures.” 2
  • 3. Summary of FY 2008 • Company continued to significantly grow its operations • Ranked “#1 in Power” by ENR magazine • Signed first 3 nuclear EPC contracts (one subsequent to fiscal year end) • Record financial results: Revenue, EBITDA, Net Income, EPS, Operating Cash Flow, and Cash Balance • Received credit rating upgrades from Moody’s and S&P • Increased credit facility from $850M to $1.05B 54M012008B • Entering Fiscal 2009 with a strong backlog 3
  • 4. Selected Major Projects Underway In FY 2008 MOX – South Carolina SHARQ – Saudi Arabia IHNC Hurricane Protection – AP1000 Nuclear - China Louisiana 54M012008B Cleco Rodemacher – Louisiana 4
  • 5. FY 2008: Financial Results Record FY 2008 FY 2007 (in millions, except per As Reported Westinghouse Actuals Actuals share data) Segment Excluding Excluding Westinghouse* Westinghouse* Revenue $ 6,998.0 $ 0.0 $ 6,998.0 $ 5,723.7 Gross Profit 586.0 0.0 586.0 375.4 EBITDA* 316.6 (45.9) 362.5 92.1 Net Income 140.7 (50.7) 191.4 19.4 Diluted EPS 1.67 (0.60) 2.27 0.24 Operating Cash Flow 623.9 (25.9) 649.8 477.4 New Awards 8,282.7 N/A 8,282.7 10,941.1 •• Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M Strong revenue growth continues – led by Fossil & Nuclear, E&C, and F&M •• Record EBITDA, Net Income, and EPS Record EBITDA, Net Income, and EPS •• Record Operating Cash Flow; total cash balance $937M Record Operating Cash Flow; total cash balance $937M •• Strong new orders result in a $15.6 billion backlog entering 2009 Strong new orders result in a $15.6 billion backlog entering 2009 02M102007D *See Appendices for a reconciliation to the corresponding GAAP measure. 5
  • 6. Shaw Experienced Significant EBITDA Growth In FY 2008 $363 ($ in millions) Increase of nearly 300% year-over-year Increase of nearly 300% year-over-year 69% compound annual growth over last 4 years 69% compound annual growth over last 4 years $124 $92 $90 $45 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 54M012008B Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization; values for FY2007 and FY2008 exclude the Westinghouse segment. See Appendices for a reconciliation to the corresponding GAAP measure. 6
  • 7. Cash and Debt at End of FY08 Record 937 ($ in millions) Cash Debt 688 663 482 361 218 178 165 107 86 28 28 17 18 10 13 Q-1 FY07 Q-2 FY07 Q-3 FY07 Q-4 FY07 Q-1 FY08 Q-2 FY08 Q-3 FY08 Q-4 FY08 Operating Cash Flow of $624M for FY 2008 Operating Cash Flow of $624M for FY 2008 02M102007D Notes: 1. Cash balance represents the sum of cash, cash equivalents and restricted cash. 2. Total debt excludes Japanese Yen-denominated bonds secured by Investment in Westinghouse. See Appendices for a reconciliation to the corresponding GAAP measure. 7
  • 8. Consolidated Backlog and Backlog Conversion (as of 8/31/08) Backlog by Business Segment Expected Backlog Conversion ($ in billions) Consolidated Next Fabrication & Manufacturing $15.6 13-24 months 12 months Energy & Chemicals $14.3 27% $0.8 37% Environmental & Infrastructure $0.7 $2.2 $4.2B Maintenance $2.6 Fossil & Nuclear $5.7B $9.1 $5.1 $5.7B $2.6 $0.4 $6.7 $1.4 $1.7 $5.8 $1.4 $4.8 $2.8 Greater than 24 months $6.1 $6.7 $1.3 36% $3.2 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Backlog excludes majority of domestic nuclear work expected to be performed under signed Backlog excludes majority of domestic nuclear work expected to be performed under signed 54M012008B EPC contracts (Georgia Power, SCE&G, and Progress Energy Florida) EPC contracts (Georgia Power, SCE&G, and Progress Energy Florida) 8
  • 9. Fossil and Nuclear Projects Present Significant Upside To Backlog At 8/31/2008 Backlog + Projects Where Shaw Has Been Selected But Work Has Not Been Released $37.6 ($ in billions) Consolidated Fabrication & Manufacturing • RWE • Progress Energy & Chemicals Energy Environmental & Infrastructure • SCE&G / $22.0 Maintenance Santee Cooper • Southern Fossil & Nuclear (Georgia Fossil & Nuclear – selected but Power) projects not in backlog $14.3 Total - $15.6 $0.8 $2.2 $9.1 $5.1 $6.7 $5.8 $4.8 $1.4 $6.1 54M012008B FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Full Spectrum of Shaw’s Workload Approaching $40B Full Spectrum of Shaw’s Workload Approaching $40B 9
  • 10. Shaw Has Created Significant Long-Term Value For Shareholders End of FY 2008 SGR vs. S&P 500: Sept. 1, 1999 – Jan. 27, 2009 700% SGR 600% SGR up nearly 175% over past 10+ years, even SGR up nearly 175% over past 10+ years, even 500% when considering the recent economic when considering the recent economic downturn, as compared to the S&P 500, which downturn, as compared to the S&P 500, which 400% is down approx. 40% during the same period is down approx. 40% during the same period 300% 200% 100% S&P 500 0% -100% 02M102007D 9/1/99 9/1/00 9/1/01 9/1/02 9/1/03 9/1/04 9/1/05 9/1/06 9/1/07 9/1/08 10
  • 11. FY08 Summary • 2008 was a strong year for Shaw with record earnings and cash flow • Backlog positions us for a stronger year in 2009 • First EPC Nuclear projects remain on track • Our focus on regulated electric utilities, national and international oil companies, and the U.S. Government should continue to provide us with stability through these tough economic times 02M102007D 11
  • 12. FY2009 Guidance Communicated on Q-4 FY08 Earnings Call Metric Guidance Revenue $7.1 - $7.3 Billion Diluted EPS, excluding $2.50 - $2.70 per share Westinghouse Operating Cash Flow $250 - $300 Million Earnings expected to be driven by projects in Earnings expected to be driven by projects in backlog from Fossil & Nuclear, F&M, and E&C. backlog from Fossil & Nuclear, F&M, and E&C. Operating Cash Flow expected to be driven Operating Cash Flow expected to be driven 02M102007D primarily by Fossil & Nuclear. primarily by Fossil & Nuclear. 12
  • 14. The Shaw Group Inc. FY 2008 Annual Meeting Regulation G Appendices Wednesday, January 28, 2009 02M102007D
  • 15. Appendix 1: EBITDA Reconciliation FY 2008 FY 2008 Westinghouse Excluding (in millions) Consolidated Segment Westinghouse Net Income (Loss) $ 140.7 $ (50.7) $ 191.4 Interest Expense 46.0 37.4 8.6 Depreciation and Amortization 47.1 - 47.1 Provision for Income Taxes 71.4 (42.2) 113.6 Income Taxes on Unconsolidated Subs 11.4 9.6 1.8 Income Taxes on Discontinued Ops - - - EBITDA $ 316.6 $ (45.9) $ 362.5 02M102007D Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance. 15
  • 16. Appendix 1: EBITDA Reconciliation FY 2007 FY 2007 Westinghouse Excluding (in millions) Consolidated Segment Westinghouse Net Income (Loss) $ (19.0) $ (38.4) $ 19.4 Interest Expense 43.4 30.6 12.8 Depreciation and Amortization 41.3 - 41.3 Provision for Income Taxes 10.7 (26.1) 36.8 Income Taxes on Unconsolidated Subs (16.8) 1.4 (18.2) Income Taxes on Discontinued Ops - - - EBITDA $ 59.6 $ (32.5) $ 92.1 02M102007D Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance. 16
  • 17. Appendix 1: EBITDA Reconciliation FY 2004- FY 2006 FY 2004 FY 2005 FY 2006 (in millions) Net Income (Loss) $ (33) $ 16 $ 50 Interest Expense 38 29 19 Depreciation and Amortization 59 28 35 Provision for Income Taxes (15) 17 18 Income Taxes on Unconsolidated Subs 2 - - Income Taxes on Discontinued Ops (4) - - EBITDA $ 45 $ 90 $ 124 02M102007D Note: EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA is an important financial measure used by The Shaw Group Inc. to assess performance. 17
  • 18. Appendix 2: FY 2008 Reconciliation of Income excluding Westinghouse FY 2008 (in millions, except per share data) Twelve months ended August 31, 2008 Westinghouse Excluding Consolidated Segment Westinghouse Revenues $6,998.0 $0.0 $6,998.0 Cost of revenues 6,412.0 0.0 6,412.0 Gross profit 586.0 0.0 586.0 General and administrative expenses 276.3 0.9 275.4 Operating income (loss) 309.7 (0.9) 310.6 Interest expense (8.6) 0.0 (8.6) Interest expense on JPY-denominated bonds including accretion and amortization (37.4) (37.4) 0.0 Interest income 20.9 0.0 20.9 Foreign currency translation gains (losses) on JPY-denominated bonds, net (69.7) (69.7) 0.0 Other foreign currency transaction gains (losses), net 6.6 0.0 6.6 Other income (expense), net (1.0) 0.1 (1.1) (89.2) (107.0) 17.8 Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities (b) 220.5 (107.9) 328.4 Provision (benefit) for income taxes (a) 71.4 (42.2) 113.6 Income (loss) before minority interest and earnings (losses) from unconsolidated entities 149.1 (65.7) 214.8 Minority interest (c) (26.1) 0.0 (26.1) Income from 20% Investment in Westinghouse, net of income taxes 15.0 15.0 0.0 Earnings (losses) from unconsolidated entities, net of income taxes 2.7 0.0 2.7 Net income (loss) $140.7 ($50.7) $191.4 Net income (loss) per common share: Basic income (loss) per common share $ 1.71 $ (0.62) $ 2.33 Diluted income (loss) per common share $ 1.67 $ (0.60) $ 2.27 Weighted average shares outstanding: Basic 82.1 82.1 82.1 Diluted: 84.2 84.2 84.2 02M102007D Effective tax rate [a/(b+c)] 37% 39% 38% 18 Note: Presents our income statement excluding the Investment in Westinghouse segment
  • 19. Appendix 2: FY 2007 Reconciliation of Income excluding Westinghouse (in millions, except per share data) FY 2007 Twelve months ended August 31, 2007 Westinghouse Excluding Consolidated Segment Westinghouse Revenues $5,723.7 $0.0 $5,723.7 Cost of revenues 5,348.3 0.0 5,348.3 Gross profit 375.4 0.0 375.4 General and administrative expenses 274.5 2.9 271.6 Operating income (loss) 100.9 (2.9) 103.8 Interest expense (12.8) 0.0 (12.8) Interest expense on JPY-denominated bonds including accretion and amortization (30.6) (30.6) 0.0 Interest income 13.8 0.0 13.8 Foreign currency translation gains (losses) on JPY-denominated bonds, net (33.2) (33.2) 0.0 Other foreign currency transaction gains (losses), net (5.3) 0.0 (5.3) Other income (expense), net 0.3 0.0 0.3 (67.8) (63.8) (4.0) Income (loss) before income taxes, minority interest, earnings (losses) from unconsolidated entities and loss from and impairment of discontinued operations (b) 33.1 (66.7) 99.8 Provision (benefit) for income taxes (a) 10.7 (26.1) 36.8 Income (loss) before minority interest and earnings (losses) from unconsolidated entities 22.4 (40.6) 63.0 Minority interest (c) (17.7) 0.0 (17.7) Income from 20% Investment in Westinghouse, net of income taxes 2.2 2.2 0.0 Earnings (losses) from unconsolidated entities, net of income taxes (25.9) 0.0 (25.9) Net income (loss) ($19.0) ($38.4) $19.4 Net income (loss) per common share: Basic income (loss) per common share $ (0.24) $ (0.48) $ 0.24 Diluted income (loss) per common share $ (0.24) $ (0.48) $ 0.24 Weighted average shares outstanding: Basic 79.9 79.9 79.9 Diluted: 79.9 79.9 81.8 02M102007D Effective tax rate [a/(b+c)] 70% 39% 45% 19 Note: Presents our income statement excluding the Investment in Westinghouse segment
  • 20. Appendix 3: Total Debt Reconciliation Restated Restated Restated Restated Restated (in millions) Q4 FY 2008 Q3 FY 2008 Q2 FY 2008 Q1 FY 2008 Q4 FY 2007 Q3 FY 2007 Q2 FY 2007 Q1 FY 2007 Financed Insurance Premiums $0.0 $2.4 $7.4 $11.1 $0.0 $3.1 $6.6 $10.4 Current maturities of long-term debt 4.5 4.4 2.7 4.6 5.4 8.8 9.1 9.5 Short-term revolving line of credit 0.0 0.0 1.0 2.3 0.2 2.8 2.7 2.5 Current portion of obligations under capital leases 1.5 1.8 1.9 2.2 2.1 2.2 2.2 1.8 Short-term debt and current maturities of long-term debt 6.0 8.6 13.0 20.2 7.7 16.9 20.6 24.2 Revolving line of credit 0.0 0.0 0.0 0.0 0.0 0.0 39.0 53.0 Long-term debt, less current maturities 3.3 3.5 3.8 6.6 7.5 8.6 23.8 26.7 Obligations under capital leases, less current portion 0.3 0.4 0.8 1.3 1.8 2.2 2.8 3.0 Long-term debt, less current maturities 3.6 3.9 4.6 7.9 9.3 10.8 65.6 82.7 Japanese Yen-denominated long-term bonds secured by Investment in Westinghouse, net 1,162.0 1,197.1 1,187.8 1,145.6 1,087.4 1,033.9 1,048.3 1,080.6 Total Debt $1,171.6 $1,209.5 $1,205.4 $1,173.7 $1,104.4 $1,061.6 $1,134.5 $1,187.5 Less: Westinghouse Debt 1,162.0 1,197.1 1,187.8 1,145.6 1,087.4 1,033.9 1,048.3 1,080.6 Total Debt, excluding Westinghouse $9.6 $12.5 $17.6 $28.1 $17.0 $27.7 $86.2 $106.9 02M102007D Note: To show our total debt excluding the Japanese Yen-denominated bonds 20