Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — FY2021 Earnings Presentation
31 slides from Fti Consulting's earnings presentation, March 2022
Slide 1: Investor Presentation
—— Investor Presentation 1 FTI Consulting, Inc. 2 iitt: a March 2022
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 $4.9B 1982 6,700+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 650+ 88 9 Se
Slide 4: Our Global Reach
Our Global Reach With offices in 89 cities and 30 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
Business Snapshot Five Segments, One Purpose 6
Slide 7: Segment Snapshot
Segment Snapshot Segment Revenues and Total Adjusted Segment EBITDA FY 2021 Segment Revenues FY 2021 Total Adjusted Segment EBITDA (1) 10% 12% 10% 34% 12% 34% 25% 26% 21% 16% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation – Finance & Office of the CFO Solutions – People & Transformations 17 – Revenue & Operations countries – Strategy – Technology Transformation ▪ Transactions – Diligence – Investment Banking & Transaction Opinions – Merger Integrati
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering FY 2021 Key Financial Commentary The Corporate Finance & Restructuring ▪ Revenues increased $28.8 million, or 3.2%, from 2020 to 2021, which included a 2.0% segment focuses on the strategic, estimated positive impact from FX. Acquisition
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions – Asset Lifecycle Management – Capital Program Risk Management – Cost Analytics & Auditing Services 1,496 ▪ Data & Analysis professionals – Anti-corruption and Anti-money Laundering – Dispute Resolutions, Investigat
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering FY 2021 Key Financial Commentary The Forensic and Litigation Consulting ▪ Revenues increased $84.6 million, or 16.9%, from 2020 to 2021, which included a 1.5% segment provides law firms, companies, estimated positive impact from FX. Acq
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Damages Analysis – M&A-related Antitrust – Non-M&A-related Antitrust 19 ▪ Financial Economics countries – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ International Arbitration – Business Va
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering FY 2021 Key Financial Commentary The Economic Consulting segment, including ▪ Revenues increased $98.3 million, or 16.4%, from 2020 to 2021, which included a 2.1% subsidiary Compass Lexecon, provides law estimated positive impact from FX. Excluding th
Slide 14: Technology
Technology Services ▪ Corporate Legal Operations – Advisory on Governance, Policy, Standards and 15 Execution countries – Advisory on Operational Efficiencies – Contract Intelligence – Subscriptions and Managed Services ▪ E-discovery Services and Expertise – Analytics Research – Blockchain Advisory
Slide 15: Technology (continued)
Technology (continued) Segment Offering FY 2021 Key Financial Commentary Our Technology segment provides ▪ Revenues increased $64.4 million, or 28.9%, from 2020 to 2021, which included a 2.1% companies, law firms and government estimated positive impact from FX. Excluding the estimated impact from F
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Digital, Analytics & Insights 814 – ESG & Sustainability professionals – Litigation Communications ▪ Financial Communications – Corporate Governance & Shareholder Activism – M&A Communications – Restructuring & F
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering FY 2021 Key Financial Commentary The Strategic Communications segment ▪ Revenues increased $38.9 million, or 17.0%, from 2020 to 2021, which included a 3.2% develops and executes communications estimated positive impact from FX. Excluding the est
Slide 18: Fourth Quarter 2021 Select Awards & Accolades
im Ftd Fourth Quarter 2021 Select Awards & Accolades Ale fl el 2) Ranked as the #1 Restructuring Adviser Honored as Firm of the Year in seven by dollar volume on The Deal’s Q4 2021 categories at the annual Who’s Who Bankruptcy League Table Legal Awards: * Arbitration Expert Firm of the Year The Deal
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
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Slide 21: FY 2017 – FY 2022 Guidance Revenues
FY 2017 – FY 2022 Guidance Revenues $2,920 - $3,045 21
Slide 22: FY 2017 – FY 2021 Net Income and Adjusted EBITDA
FY 2017 – FY 2021 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 comp
Slide 23: FY 2017 – FY 2022 Guidance EPS and Adjusted EPS
FY 2017 – FY 2022 Guidance Earnings per Diluted Share and Adjusted Earnings per Diluted Share $6.40 - $7.20 (1) $6.76 $6.40 - $7.20 $5.80 $5.99 $4.00 $2.32 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjus
Slide 24: Select Cash Position and Capital Allocation
Full Year 2021, 2020 and 2019 Select Cash Position and Capital Allocation All numbers in thousands, except for DSO 2021 2020 2019 Cash and cash equivalents $ 494,485 $ 294,953 $ 369,373 Accounts receivable, net $ 754,120 $ 711,357 $ 693,372 Days sales outstanding (“DSO”) (1) 94 95 97 Net cash provid
Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Fe Financial Tables Reconciliations of Non-GAAP Financial Measures im F. F usulrind
Slide 26: Reconciliations of Net Income to Adjusted EBITDA
Reconciliations of Net Income to Adjusted EBITDA (in thousands) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Net income $ 234,966 $ 210,682 $ 216,726 $ 150,611 $ 107,962 Income tax provision (benefit) 62,981 51,764 71,724 57,181 (20,857) Interest income and other (6,193) 412 (2,061) (4,977) (3,752) Inter
Slide 27: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS
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) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Net income $ 234,966 $ 210,682 $ 216,726 $ 150,611 $ 107,962 Add back: Special charges — 7,103
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2021 Net income $ 234,966 Add back: Income tax provision 62,981 Interest income and other (6,193) Interest expense 20,294 Unallocated corporate expenses 104,457 Segment depreciation expense 31,072 Amortization of intangi
Slide 29: Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow (in thousands) FY 2021 FY 2020 FY 2019 Net cash provided by operating activities $ 355,483 $ 327,069 $ 217,886 Purchases of property and equipment (68,569) (34,866) (42,072) Free Cash Flow (1) $ 286,914 $ 292,203 $ 175,81
Slide 30: End Notes
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 Uni
Slide 31: Experts with Impact
im F, T YL CONSULTING Experts with Impact” 31