Fluor Corporation Investor Overview FOURTH QUARTER AND YEAR END 2017
Safe Harbor Statement This presentation contains forward-looking statements concerning the expected financial performance of Fluor Corporation and its subsidiaries ( we, our or the Company ) and the Company s strategic and operation plans, including statements about our projected earnings level, expenses, market outlook, new awards, backlog levels, and client capital investments. Words such as believes, expects, anticipates, assumes, may, positions, looking ahead, views, think, target, trend, can, appears, estimates, should, outlook, guidance or other similar expressions often identify forward-looking statements. Such statements are based on current management expectations as to what may occur in the future. Risks and uncertainties may cause actual results to differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Investors are cautioned not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof. The company disclaims any intent or obligation, other than as required by law, to update this information in light of new information or future events. Additional information about potential risk factors that could affect the Company s business and financial results is included in our Form 10-K filed on February 20, 2018. During this presentation, we may discuss certain non-gaap financial measures. Reconciliations of these amounts, with the comparable GAAP measures, are reflected in our earnings release and are posted in the investor relations section of our website at investor.fluor.com. FOURTH QUARTER AND YEAR END 2017
Fluor Profile A leading Engineering, Procurement, Fabrication, Construction and Maintenance (EPFCM) company Integrated Solutions delivery model Long term global presence and mega-project experience Diversified across energy, industrial, infrastructure and government markets Strong Front-End Engineering and Design (FEED) capability $2.1 billion in cash and marketable securities at quarter-end Quarterly dividend $0.21 per share 2017 new awards of $12.6 billion and ending backlog of $30.9 billion 3
Global Business Segments REVENUE 4Q 2017 $5.0 BILLION BACKLOG 31 DEC 2017 $30.9 BILLION 14% 8% 12% BACKLOG LEGEND 19% Energy, Chemicals & Mining Upstream, Downstream, Refining, Chemical, Petrochemical, Offshore, LNG, Pipeline, Mining 47% 25% 55% Industrial, Infrastructure & Power Infrastructure, Power EPC, Life Sciences & Advanced Manufacturing, NuScale 20% Government U.S. and International Government Agencies 4 Diversified Services AMECO, TRS, Stork, Power Services
New Awards & Backlog NEW AWARDS ($B) BACKLOG ($B) $6.4 $7.0 $46.0 $47.3 $44.3 $45.0 $41.6 $37.6 $4.7 $32.9 $30.9 $3.8 $2.8 $2.3 $3.2 $3.2 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 55
Backlog $30.9 Billion GEOGRAPHY CONTRACT TYPE ASIA PACIFIC 5% 10% AMERICAS 43% EUROPE, AFRICA & MIDDLE EAST 42% UNITED STATES 37% Fixed Price 63% Reimbursable 66
Fourth Quarter 2017 Financial Performance Quarter Ended ($ in millions, except EPS) 12/31/2017 12/31/2016 Revenue $ 5,027 $ 4,990 Segment Profit 195 249 Net Earnings 60 71 EPS (diluted) 0.43 0.50 New Awards 3,235 2,825 Backlog 30,915 45,011 FOURTH QUARTER AND YEAR END 2017
Earnings Per Share $4.48 $3.89 $3.10 $3.50 $2.00 $1.36 2014 2015* 2016 2017 2018 (est)** * Excludes pension settlement costs; ** Guidance as of 2/20/2018 earnings call 88
SEGMENT UPDATES 2018 FLUOR CORPORATION. ALL RIGHTS RESERVED. 9
Energy, Chemicals & Mining 4Q new awards of $1.1 billion Offshore project in the North Sea Oil & Gas opportunities include petrochemical, LNG and refining Shortlisted for LNG Canada project Increased capex profile along U.S. Gulf Coast, including additional cracker capacity and derivative units Mining prospects include copper, gold and iron ore replacement projects Opportunities in South America, Africa and Australia CONSOLIDATED NEW AWARDS AND BACKLOG (Dollars in Billions) AWARDS BACKLOG $29.4 $21.8 $17.0 $12.0 $8.4 $5.4 2015 2016 2017 10
Industrial, Infrastructure & Power 4Q new awards of $483 million Greenline light-rail extension project in Massachusetts Significant progress on infrastructure projects Light rail: Purple Line in Baltimore, Greenline in Boston, LA People mover Road: Southern Gateway in Dallas; Connect 202 in Phoenix; A10 in Amsterdam CONSOLIDATED NEW AWARDS AND BACKLOG (Dollars in Billions) $7.1 $9.7 $6.2 $15.1 $7.7 Bridge: Gov. Mario M. Cuomo bridge in New York Expect ongoing power projects to be complete by December 2018 AWARDS BACKLOG $2.6 2015 2016 2017 11
Government 4Q new awards of $1.1 billion Task order awards to restore power in Puerto Rico for the U.S. Army Corps of Engineers Currently winding down USACE operations in Puerto Rico Prospects in 2018 include LOGCAP V, Hanford liquid waste Remain well positioned for future disaster relief efforts CONSOLIDATED NEW AWARDS AND BACKLOG (Dollars in Billions) $3.6 $5.2 $4.6 $2.6 $3.8 $1.4 AWARDS BACKLOG 2015 2016 2017 12
Diversified Services Segment includes: Stork (operations & maintenance) AMECO (construction equipment) TRS (professional staffing) Power Services (Power facility maintenance) 4Q new awards of $568 million CONSOLIDATED NEW AWARDS AND BACKLOG (Dollars in Billions) $1.4 $2.1 $1.8 $2.9 $2.0 $2.5 Outlook for maintenance spending improving AWARDS BACKLOG 2015 2016 2017 13
Summary Backlog of $30.9 billion $2.1 billion in Cash & Marketable Securities 2018 guidance of $3.10 - $3.30 per diluted share Reflects new revenue recognition model and U.S. tax reform Major end markets improving Oil & Gas (LNG, petrochemicals) Infrastructure (roads and bridges) Mining (copper, iron ore, bauxite, gold) Commitment to disciplined capital strategy Focus on managing internal costs 14