Slide 1: Investor Presentation
Investor Presentation FTI Consulting, Inc. October 2023
Slide 2: Cautionary Note about Forward-Looking Statements
Cautionary Note about Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-loo
Slide 3: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes FCN $7.7B 1982 8,000+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 780+ 84 31 1
Slide 4: Our Global Reach
Our Global Reach With offices in 84 cities and 31 countries, FTI Consulting has a presence in every major financial center and every corner of the globe, and we successfully serve our clients wherever challenges and opportunities arise. The Americas Europe, the Middle East, Africa Asia Australia Arg
Slide 5: Investment Thesis
Investment Thesis Leading global business advisory firm with strong people and strong positions: corporations, law firms and governments come to us when there is a critical need Organic growth strategy with an emphasis on profitable revenue growth Committed to building a profitable business with sus
Slide 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Forensic and Litigation Consulting ▪ Construction Solutions Corporate Finance & ▪ Data & Analytics Restructuring ▪ Disputes ▪ Business Transformation & ▪ Health Solutions Strategy ▪ Risk and Investigations ▪ Transactions ▪ Turnaround & Restructuring Econ
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA 3Q 2023 Segment Revenues 3Q 2023 Total Adjusted Segment EBITDA (1) 10% 9% 11% 10% 39% 47% 22% 19% 18% 15% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation & Strategy – Enterprise Transformation 22 – Environmental, Social and Governance ("ESG") countries & Sustainability – Office of the CFO & Finance Transformation – People & Change – Revenue & Operations – Strategy – Technology Trans
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q3 2023 Key Financial Commentary Our Corporate Finance & Restructuring ▪ Revenues increased $65.5 million, or 23.2%, to $347.6 million for the three months ended segment focuses on the strategic, September 30, 2023, which included a 1.1%
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction Solutions 1,503 – Asset Lifecycle Management – Capital Program Risk Management – Cost Analytics and Auditing Services ▪ Data & Analytics professionals – Anti-Corruption and Anti-Money Laundering – Dispute Resolutions, Investigations and Reme
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Q3 2023 Key Financial Commentary Our Forensic and Litigation Consulting segment provides law firms, companies, ▪ Revenues increased $22.8 million, or 15.9%, to $166.1 million for the three months ended boards of directors, government en
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Merger & Acquisition (“M&A”)-related 18 Antitrust – Non-M&A-related Antitrust countries ▪ Financial Economics – Contractual Claims – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ Internationa
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q3 2023 Key Financial Commentary Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides ▪ Revenues increased $0.7 million, or 0.4%, to $193.9 million for the three months ended law firms, companies, government entities Sep
Slide 14: Technology
Technology Services ▪ Corporate Legal Department Consulting – Advisory on Governance, Policy, Standards and Execution – Advisory on Operational Efficiencies – Contract Services 17 – Legal Technology Selection and Implementation countries – Subscriptions and Managed Services ▪ E-discovery Services an
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q3 2023 Key Financial Commentary Our Technology segment provides companies, law firms, private equity firms ▪ Revenues increased $13.9 million, or 16.4%, to $98.9 million for the three months ended and government entities with a September 30, 2023, which inclu
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Cybersecurity & Data Privacy Communications 1,010 – Digital, Analytics & Insights professionals – ESG & Sustainability – Litigation Communications – People & Transformation ▪ Financial Communications – Corporate
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q3 2023 Key Financial Commentary Our Strategic Communications segment develops and executes communications ▪ Revenues increased $14.4 million, or 19.9%, to $86.8 million for the three months ended strategies to help management teams, September 30
Slide 18: Third Quarter 2023 Select Awards & Accolades
Third Quarter 2023 Select Awards & Accolades 18
Slide 19: Environmental, Social & Governance ("ESG"): Our Commitment & Progress
Environmental, Social & Governance (“ESG”): Our Commitment & Progress FTI Consulting’s approach to ESG underscores our commitment to being Experts With Impact™ who make a positive difference for our clients and communities. Environmental Social Governance We strive to do our part in addressing clima
Slide 20: Financial Overview
Financial Overview im F. F usulrind
Slide 21: FY 2020 – Q3 2023 and FY 2023 Guidance: Revenues
FY 2020 – Q3 2023 and FY 2023 Guidance: Revenues $3,350 - $3,400 21
Slide 22: FY 2020 – Q3 2023: Net Income and Adjusted EBITDA
FY 2020 – Q3 2023: Net Income and Adjusted EBITDA Net income Adjusted EBITDA (1) (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to the most directly com
Slide 23: Earnings per Diluted Share and Adjusted Earnings per Diluted Share
FY 2020 – Q3 2023 and FY 2023 Guidance: Earnings per Diluted Share and Adjusted Earnings per Diluted Share $6.70 - $7.20 (1) $6.70 - $7.20 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings per
Slide 24: Select Cash Position and Capital Allocation
Q3 2023, Q2 2023 and Q3 2022: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q3 2023 Q2 2023 Q3 2022 Cash and cash equivalents $ 201,148 $ 203,539 $ 327,047 Accounts receivable, net $ 1,207,016 $ 1,138,061 $ 947,993 Days sales outstanding (“DSO”) (1) 114 111 106
Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 26: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q3 2023 Q2 2023 Q1 2023 FY 2022 FY 2021 FY 2020 Net income $ 83,317 $ 62,395 $ 47,547 $ 235,514 $ 234,966 $ 210,682 Add back: Income tax provision 24,385 22,708 14,974 62,235 62,981 51,764 Interest income and other (5,147) 584 1,342 (3,9
Slide 27: Reconciliations of Net Income to Adjusted Net Income and Earnings per Diluted Share
Reconciliations of Net Income to Adjusted Net Income and Earnings per Diluted Share to Adjusted Earnings per Diluted Share (in thousands, except for per share data) Q3 2023 Q2 2023 Q1 2023 FY 2022 FY 2021 FY 2020 Net income $ 83,317 $ 62,395 $ 47,547 $ 235,514 $ 234,966 $ 210,682 Add back: Special c
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q3 2023 Net income $ 83,317 Add back: Income tax provision 24,385 Interest income and other (5,147) Interest expense 4,474 Unallocated corporate expenses 27,589 Segment depreciation expense 9,699 Amortization of intangible
Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (in thousands) Q3 2023 Q2 2023 Q3 2022 Net cash provided by (used in) operating activities $ 106,675 $ (10,994) $ 128,292 Purchases of property and equipment (14,199) (11,052) (13,316) Free Cash Flow (1) $ 92,476
Slide 30: End Notes: FTI Consulting Non-GAAP Financial Measures
End Notes: FTI Consulting Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the Un
Slide 31: Experts with Impact
im F, TY CONSULTING Experts with Impact” 31