Slide 1: Q2 2022 Results
Q2 2022 Results August 5, 2022 © 2022 Fluor Corporation. All Rights Reserved.
Slide 2: Safe Harbor Statement
This presentation contains forward-looking statements (including without limitation statements to the effect that the Company or its management “will,” “believes,” “expects,” “plans,” “intends,” “continue,” is “positioned” or other similar expressions). These forward-looking statements, including st
Slide 3: Opening Comments
OPENING COMMENTS a ° ~ wl u
Slide 4: Opening Comments
Opening Comments Accelerating Sustainability ̶ Driving towards our Net Zero 2023 commitment Q2 new awards of $3.6 billion ̶ 73% reimbursable ̶ Nearly 40% of new awards support Energy Transition related opportunities Strong demand for technical and construction services Margins on new awards
Slide 5: Urban Solutions
URBAN SOLUTIONS ® FLUOR
Slide 6: Urban Solutions
Urban Solutions Q2 segment profit of $8 million ̶ Results reflect cost growth on three legacy infrastructure projects Closed P3 Infrastructure transaction New awards of $1.9 billion ̶ Book-to-burn of 2x $8,014 $7,711 $1,943 CONSOLIDATED Q2 2021 BACKLOG AND NEW AWARDS $617 Q2 2022 (Dollars in M
Slide 7: Urban Solutions – Infrastructure
Urban Solutions – Infrastructure $547 million new award for I-35 Capital Expressway South Near-term prospect pipeline includes A27 project in The Netherlands Q2 results include charges on three legacy projects – $32 million increase in cost estimate on Gordie Howe driven by inflation pressure
Slide 8: Urban Solutions – Mining & Metals
Urban Solutions – Mining & Metals New awards ̶ Rare earths refinery for Iluka Resources Limited ̶ Copper project in Indonesia Prospect pipeline ̶ $5 billion of LNTP and FNTP awards Quellaveco ̶ Initial operations began in July ̶ Expect average production of 300,000 tons of copper per year © 20
Slide 9: Urban Solutions – Advanced Technologies & Life Sciences
Urban Solutions – Advanced Technologies & Life Sciences Semiconductor manufacturing demand across multiple clients Currently working on projects in Arizona and Malaysia for Intel Prospect pipeline – Prospects include the expansion of existing biologics manufacturing facility for Fujifilm in Eu
Slide 10: Mission Solutions
MISSION SOLUTIONS 10
Slide 11: Mission Solutions
Mission Solutions Q2 segment profit of $28 million Pantex Y-12 update – Award was cancelled by the NNSA due to an accelerating workload at both facilities – Pantex RFP expected by the end of this year Savannah River – DOE stated intent to extend current contract for four additional years with
Slide 12: Energy Solutions
ENERGY SOLUTIONS 12
Slide 13: Energy Solutions
Energy Solutions Q2 segment profit of $65 million includes: – Cost growth, FX impacts and estimated recoveries on a legacy upstream project – $17 million embedded derivative gain New Awards – Lithium chemicals project in China – ICA Fluor award for a refinery project in Mexico $10,633 $1,339 – N
Slide 14: LNG Canada
LNG Canada Joint venture scope well over 60% complete Out of 215 modules, 93 modules are onsite Working collaboratively with the client to resolve COVID-related impacts © 2022 Fluor Corporation. HO20220115 14
Slide 15: NuScale
NUSCALE FLUOR.
Slide 16: NuScale
NuScale Fluor’s ownership currently at 57% ̶ Represents 126.4 million shares Recent developments: ̶ United States providing Romania with a NuScale small modular reactor simulator ̶ United States committing $14 million toward a front-end-engineering and design study for a VOYGR-6 SMR power plant
Slide 17: Q2 2022 Financial Results
Q2 2022 FINANCIAL RESULTS © 2022 Fluor Corporation. HO20220115 17
Slide 18: Q2 2022 Financial Results
Q2 2022 Financial Results $3.3 $108 $65 $0.13 billion million million Diluted revenue segment profit adjusted EBITDA adjusted EPS Results include higher than anticipated tax Corporate New awards of Cash and expenses, project G&A of $3.6 billion marketable charges, FX impact $45 securities million
Slide 19: Q2 2022 Financial Results
Q2 2022 Financial Results Q2 operating cash flow of $55 million ̶ Expect cash balance will be flat for the full year Project FIT ̶ Approaching $100 million in ongoing cost savings ̶ Expect annual savings well above this amount by 2024 © 2022 Fluor Corporation. HO20220115 19
Slide 20: Capital Structure
Capital Structure Liability management Debt to Capital Ratio – $23 million in 2023 notes retired 54.8% – Debt-to-capital ratio is under 40% Asset management 40.7% 38.7% – $18 million cash proceeds from Canadian P3 investment – Stork Europe exclusivity agreement progressing well – AMECO Mozambiqu
Slide 21: Outlook
Outlook Guidance – Tightening 2022 adjusted EPS guidance to $1.15 to $1.35 – Adjusted EBITDA range of $380 to $430 million In-line with original expectations for 2022 2022 Assumptions: – Revenue similar to FY 2021 – Adjusted G&A expense of $50M/quarter – 2H effective tax rate of 36% 2H 2022
Slide 22: Question and Answers
Question and Answers “If there is one thing that unites all of us, it’s a commitment to building a more sustainable future for everyone.” David E. Constable Chairman and Chief Executive Officer Fluor Corporation 22
Slide 23: Appendix
APPENDIX © 2022 Fluor Corporation. HO20220115 23
Slide 24: Reconciliation of U.S. GAAP Net Earnings and EPS to Adjusted EPS
Reconciliation of U.S. GAAP Net Earnings and U.S. GAAP Earnings per Share to Adjusted EPS(1) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, (In millions, except per share amounts) 2022 2021 2022 2021 Net earnings (loss) attributable to Fluor $ 66 $ (83) $ 114 $ (168) Less: Earnings from Stork
Slide 25: Reconciliation of Net Earnings to Adjusted EBITDA
(1) Reconciliation of Net Earnings to Adjusted EBITDA THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, (in millions) 2022 2021 2022 2021 Net earnings from Cont Ops attributable to Fluor $ 66 $ (83) $ 114 $ (168) Interest 1 12 10 30 Taxes 32 2 63 5 Depreciation & Amortization 20 19 35 43 EBITDA