Slide 1: Q4 2022 Results
Q4 2022 Results February 21, 2023 © 2023 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 Safety ̶ 2022 Total Case Incident Rate 0.31, better than 0.38 corporate goal and industry benchmark of 0.90 ̶ Silver Medallion award was established in 1992 to recognize employees who embody our vital commitment to protect one another ̶ 26 employees received a Silver Medallion in
Slide 4: Opening Comments
Opening Comments 2022 New awards of $19.8 billion ̶ Double 2021 new awards NEW ̶ 1.5X book-to-burn AWARDS 71% 68% 87% 58% ̶ 87% of FY new awards were reimbursable Backlog now 63% reimbursable FY 2019 FY 2020 FY 2021 FY 2022 Current FEED and study packages represent ~$147 billion in high-qualit
Slide 5: Segment Updates
SEGMENT UPDATES a ° ~ a u
Slide 6: Urban Solutions
Urban Solutions FY 2022 segment profit of $3 million ̶ Results reflect cost growth on three legacy Infrastructure projects in the first 3 quarters and Denver commuter ruling in Q4 FY 2022 new awards of $6.8 billion ̶ More than double last year’s $2.7 billion Segment backlog 55% reimbursable $9
Slide 7: Urban Solutions – Mining & Metals
Urban Solutions – Mining & Metals Q4 2022 new awards ̶ $2.4 billion metals project in the U.S. ̶ $600 million new award in Greece for Hellas Gold Clients continuing to move into execution phase Currently executing $2 billion of LNTP work to support demand for copper, gold, lithium and metals ©
Slide 8: Urban Solutions – Advanced Technologies & Life Sciences
Urban Solutions – Advanced Technologies & Life Sciences Awarded $100 million in Q4 front-end study work for semiconductors and biopharmaceuticals Work packages are supporting nearly $12 billion in prospects – $7 billion in life sciences – $4.5 billion in semiconductors © 2023 Fluor Corporation.
Slide 9: Urban Solutions – Infrastructure
Urban Solutions – Infrastructure In January 2023, entered into design, construction and maintenance contract for the A27 motorway project in the Netherlands ̶ Fluor’s $220 million share was booked in Q1 ̶ Reducing risk by using a two-phase contracting approach Progress made on claims and schedul
Slide 10: Mission Solutions
Mission Solutions FY 2022 segment profit of $136 million Prospects include – Intelligence community contracts – Multi-billion-dollar sole sourced award on existing DOE site – Portsmouth extension – Continuation of our services to NuScale and UAMPS Exploring opportunities with the U.S. Air Forc
Slide 11: Energy Solutions
Energy Solutions FY segment profit of $301 million – 20% increase over 2021 – Strength in LNG and chemical markets New awards – $6.5 billion in new awards, nearly double 2021 – FNTP on 3rd New Fortress Energy Fast LNG project – Additional package for BASF Integrated $9,324 $9,134 CONSOLIDATED BA
Slide 12: Energy Solutions – LNG & Chemicals
Energy Solutions – LNG & Chemicals LNG Canada – Joint venture scope is approaching 80% complete – Out of 215 modules, 169 have shipped and 149 were onsite at the end of 2022 Strong start for chemicals in 2023 – Initial award for a reimbursable multi- billion-dollar chemical facility in North Ame
Slide 13: Energy Transition
Energy Transition Energy Transition opportunities across all business lines Recently completed EPCM contract for SoCal Gas’s Hydrogen Home – First–of-a-kind U.S. project aimed to show how a carbon-free gas from renewable electricity can be used to power a clean energy system Energy transition
Slide 14: Financial Results
2022 FINANCIAL RESULTS © 2023 Fluor Corporation. HO20220115 14
Slide 15: FY 2022 Financial Results
FY 2022 Financial Results $13.7 $427 $327 billion million million revenue segment profit adjusted EBITDA $0.82 Diluted Corporate New awards of Cash and adjusted EPS G&A $19.8 marketable $237 billion securities million Book to burn: 1.5x $2.6 billion © 2023 Fluor Corporation. GV20230147 15
Slide 16: FY 2022 Financial Results
FY 2022 Financial Results Cash and marketable securities balance was $2.6 billion ̶ Excludes cash at proportionately consolidated ventures FY operating cash flow of $31 million ̶ ~$250 million was used to fund cash needs on legacy projects ̶ Expect to see modest improvement in cash flow for 2023
Slide 17: Capital Structure
Capital Structure Net Debt to Capital Ratio Moody’s outlook upgraded from 54.8% negative to stable Retired 2023 Euro Notes in January 40.7% Extended credit facility maturity 32.0% to February 2026 In final negotiations for remaining AMECO operations and Stork’s European operations Reviewin
Slide 18: Strategy Update and Outlook
STRATEGY UPDATE AND OUTLOOK 18
Slide 19: Strategy Update
Strategy Update Drive growth New awards for 2022 Pursue contracts Year ended with a majority included approximately 63% reimbursable backlog across our 81% of non-traditional Oil with fair and and well on our way to our portfolio & Gas projects balanced terms 75% goal by 2024. Reduced outstanding de
Slide 20: Outlook
Outlook Establishing 2023 guidance – Adjusted EBITDA guidance: $450 to $600 million – Adjusted EPS range: $1.50 to $1.90 Introducing long-term 2026 guidance – Adjusted EBITDA guidance: $800 to $950 million – Adjusted EPS range: $3.10 to $3.60 2023 assumptions – Revenue: ~10% growth – G&A expens
Slide 21: Q&A
Q&A © 2023 Fluor Corporation. GV20230147 21
Slide 22: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations © 2023 Fluor Corporation. GV20230147 22
Slide 23: 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 TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, (In millions, except per share amounts) 2022 2021 2022 2021 Net earnings (loss) from Cont Ops available to Fluor $ 9 $ (278) $ 145 $ (405) Les
Slide 24: Reconciliation of U.S. GAAP Net Earnings to Adjusted EBITDA
Reconciliation of U.S. GAAP Net Earnings to Adjusted EBITDA(1) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, (in millions) 2022 2021 2022 2021 Net earnings from Cont Ops attributable to Fluor $ 9 $ (278) $ 145 $ (405) Interest (31) 10 (35) 73 Taxes 82 (14) 171 20 Depreciation & Am
Slide 25: Reconciliation of Earnings Before Taxes to Total Segment Profit
Reconciliation of U.S. GAAP Net Earnings from Continuing Operations Before Taxes to Total Segment Profit(1) THREE MONTHS ENDED DECEMBER 31, TWELVE MONTHS ENDED DECEMBER 31, (in millions) 2022 2021 2022 2021 Earnings (loss) from Cont Ops before taxes 50 (276) 244 (346) G&A 89 82 237 226 Impa i rment
Slide 26: Net Debt to Capital Reconciliation
Net Debt to Capital Reconciliation (1) (in millions) Debt (ST + LT) Shareholders' Equity Debt/Cap 2022 Net Debt to Capital $ 1,130 $ 1,786 38.7% Adjustments: Discount & Unamortized Debt Cost (5) - Capital Leases 13 - AOCI - (365) Adjusted Net Debt to Capital $ 1,148 $ 2,152 34.8% January 2023 Notes