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Investor PresentationAugust 2021
Program Management | Project Management | Construction Management
Project Management Oversight | Management Consulting | Facilities Management
DELIVERING THE INFRASTRUCTURE OF CHANGE
Forward Looking StatementsCertain statements contained herein may be considered "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, and it is the intent of Hill International, Inc. referred to throughout as “Hill” the “Company”, “we”, “us” and “our” that any
such statements be protected by the safe harbor created thereby. Except for historical information, the matters set forth herein including, but
not limited to, any statements of belief or intent, any statements concerning our plans, strategies, and objectives for future operations; and
any statements regarding our intent to file late periodic reports or relisting on a national securities exchange, are forward-looking statements.
These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and
uncertainties. Although we believe that the expectations, estimates, and assumptions reflected in our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important
factors that could cause our actual results to differ materially from estimates or projections contained in our forward-looking statements are
set forth in the Risk Factors section and elsewhere in the reports we have filed with the Securities and Exchange Commission, including the
preparation of and the audit or review, as applicable, of filings may take longer than currently anticipated. We do not intend, and undertake no
obligation, to update any forward-looking statement.
2
Non-GAAP MeasuresThe following measures below are not measures of financial performance under U.S. generally accepted
accounting principles ("GAAP") and should be considered in addition to and not as a substitute for, or superior
to, the related measure of performance prepared in accordance with GAAP.
Backlog
Backlog represents the Company's estimate of the amount of uncompleted projects under contract and awards
in-hand that are expected to be recognized as CFR in future periods as a component of total revenue. Hill's
backlog is based upon the binding nature of the underlying contract, commitment or letter of intent, and other
factors, including the economic, financial and regulatory viability of the project and the likelihood of the
contract being extended, renewed or canceled. The company has added additional controls on the booking
rules to reflect more accurate actual backlog at any period. Although backlog reflects business that the
Company considers to be firm, cancellations or scope adjustments may occur. It is an important indicator of
future performance and is used by the Company in planning Hill's operational needs. Backlog is not a measure
defined in GAAP and the Company's methodology for determining backlog may not be comparable to the
methodology used by other companies in determining their backlog.
Adjusted Operating Profit (Loss)
Adjusted operating profit (loss) is operating profit (loss), adjusted to exclude non-cash items including
unrealized foreign currency exchange losses (gains), share-based compensation and the write-off of leasehold
improvements previously included in property and equipment on the Company's consolidated balance sheets.
The Company believes that adjusted operating profit (loss) is useful to investors and other external users of
Hill's financial statements as a measure of a company's core ongoing operations, without regard to non-cash
activity.
EBITDA & Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), in addition to operating profit, net
income, and other GAAP measures, is a useful indicator of Hill's financial and operating performance and its
ability to generate cash flow from operations that are available for taxes and capital expenditures. Investors
should recognize that EBITDA might not be comparable to similarly titled measures of other companies. The
Company believes that EBITDA is useful to investors and other external users of Hill's financial statements in
evaluating its operating performance because EBITDA is widely used by investors to measure a company’s
operating performance without regard to items such as interest expense, taxes, and depreciation and
amortization, which can vary substantially from company to company depending upon accounting methods
and book value of assets, capital structure and the method by which assets were acquired.
Adjusted EBITDA is EBITDA, adjusted to exclude the impact of certain items, including non-recurring, one-time
costs (as presented in the table below) and non-cash items such as unrealized foreign currency exchange
losses (benefit) and share-based compensation expense.
Adjusted Net Income (Loss) Attributable to Hill
Adjusted net income (loss) attributable to Hill is net income (loss) attributable to Hill, adjusted to exclude non-
cash items including unrealized foreign currency exchange losses (gains), share-based compensation and the
write-off of leasehold improvements previously included in property and equipment on the Company's
consolidated balance sheets. The Company believes that adjusted net income (loss) attributable to Hill is
useful to investors and other external users of Hill's financial statements as a measure of a company's
operating performance, without regard to non-cash activity.
Free Cash Flow
Free cash flow, a non-GAAP measure, includes net cash provided by (used in) continuing operations, less
purchases of property and equipment. Free cash flow is a useful indicator that provides additional perspective
on Hill's ability to generate cash that is available to the Company for taxes and other corporate purposes.
Investors should recognize that free cash flow might not be comparable to similarly-titled measures of other
companies. This measure should be considered in addition to, and not as a substitute for or superior to, any
measure of performance prepared in accordance with GAAP.
3
A Global Leader in Project ManagementDelivering the Infrastructure of Change
Hill’s internationally recognized team of program, project, and construction management experts have helped our clients deliver thousands of successful
projects across the world. HQPhiladelphia, PA
72 Offices 36 Countries
~2,900Employees
45 Years Industry Experience
10,000 + Project Assignments
$600 BN Total Construction Value
of Projects
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Investment Considerations
New Container Terminal Facility at Tangiers MedPort, Morocco
• 45-year track record of successful global project completion
• Q2 2021: • higher CFR and new bookings • backlog up from 12/31/20, with highest 12-month backlog in two years
• Diverse revenue profile driven by varied geographic, end market, and client exposure allows us to quickly adapt to changing market environments
• Low-risk professional services model combined with disciplined project execution
• Deliberate pivot towards global infrastructure projects, especially in the U.S. and Europe
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Sole Focus on Project / Construction Management
Program Management
Project Management
Oversight
Facilities Management
Troubled Project Turnaround
Estimating & Cost Management
Integrated Management
System
Staff Augmentation
PLA Consulting
ProjectCommissioning
Project Management
Construction Management
Q2 2021 Overview• CFR improved quarter-over-quarter and
sequentially from Q1 2021, with continued improvement expected throughout 2021
• SG&A was 34.9% of CFR in Q2 2021 vs. 35.5% of CFR in Q2 2020
• Operated profitably
• Strong new bookings • Q2 2021 book-to-burn of 116.4%• 1H 2021 book-to-burn of 121%
CFR
$77.7 MSG&A
$27.1 MOperating Income
$2.9 M
Bookings
$90.4 MAdj. EBITDA*
$3.8 MNet Loss
$(0.5) M
* non-GAAP measure
7
2021 Wins
Los Angeles World Airports (LAWA)
Commercial Development Services Contract to Provide Program Management for Airport Concessions Development, Tenant Projects, and Airport Commercial Analysis and Development
Municipality of Bucharest
Glina Wastewater Treatment Plant Phase 2, Bucharest, Romania
Metro Gold Line Foothill Extension Construction Authority
Contract Continuation of Program Management Services for the Foothill Gold Line Light Rail Project
Loudoun County
Recreation and Community Center, Ashburn, VA
Rua Al-Madinah Holding Company
Project Management Services to Support the Advance Roadways Package of the Madinah Central Area (MCA) Development, KSA
8
City of Philadelphia, Division of Aviation
Capital Program Administration Support Services for Philadelphia International Airport
Miami-Dade County Aviation Department (MDAD)
Program Management Services for Capital Improvement Program including Miami International Airport and County executive and general aviation airports
Evolving Our Business: Facilities Management
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• Introduces recurring revenue business model by extending project relationship to long-term operations
• Current focus on Middle East / North Africa with opportunities in all markets in which Hill currently conducts business
• Multiple solutions based on facility complexity, purpose, client requirements, installed equipment, and budget
• Average contract duration = 3 years
• Performance:
o $8.2 M of CFR for 6 months ended June 30, 2021o 9.5% of total Middle East / North Africa backlog at
June 30, 2021
Acquisition: Hill International Technical Services
10
• New entity formed following the Q4 2020 acquisition of a licensed NYS engineering corporation
• Expected to provide a significant growth engine in one of our largest U.S. operating regions beginning in 2021
• Positions Hill to pursue major aviation, highway and bridge, and rail and transit programs and projects
Acquisition: NEYO Group
• Acquired June 30, 2021
• 120 professionals provide cost management, estimating, project management, and project monitoring services
• Offices in Bangalore, Chennai, Delhi, and Mumbai, as well as project offices in Hyderabad, Pune, and Kolkata
• Strengthens Hill’s presence in India
COMMERCIAL RESIDENTIAL HEALTHCARE / HOSPITALITY
INDUSTRIAL RETAIL
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Infrastructure Update
TRANSIT & RAIL
AVIATION
HIGHWAY & BRIDGE PORTS & HARBORS• Bi-partisan agreement on $1.0 trillion
U.S. Infrastructure legislation
• Focus on physical infrastructure projects such as roads, bridges, passenger rails, drinking water, and wastewater systems
• NextGenerationEU contemplates €750 billion in loans and grants to support reforms and investments undertaken by EU countries
• Hill is well-positioned to capture these opportunities
• 46% of 1H 2021 new awards were infrastructure related
• $193 M 2020 infrastructure awards
WATER POWER
https://www.cnbc.com/2021/07/28/heres-whats-in-the-550-billion-bipartisan-infrastructure-deal.html
Significant Experience in End Markets Targeted for Funding
12
Source:
Statement of Operations Summary ($ in Thousands)
Q2 2021 Q2 2020
Consulting fee revenue $ 77,688 $ 75,760
Total revenue $ 101,546 $ 94,449
Gross profit $ 31,283 $ 29,417
Selling, general and administrative expenses $ 27,098 $ 26,857
Operating profit (loss) $ 2,897 $ 3,309
Interest and related financing fees, net $ 1,504 $ 1,296
Other loss, net $ 2 $ 3,847
Earnings (loss) before income taxes $ 1,391 $ (1,834)
Income tax expense $ 1,793 $ 102
Net loss attributable to Hill Int’l., Inc. $ (493) $ (1,954)
1H 2021 1H 2020
$ 150,097 $ 152,910
$ 188,632 $ 187,757
$ 58,514 $ 57,677
$ 54,784 $ 54,955
$ 2,743 $ (556)
$ 2,851 $ 2,595
$ -- $ 3,502
$ (108) $ (6,653)
$ 2,869 $ 1,705
$ (3,184) $ (8,535)
13
CFR: U.S. Focus, Global Reach Q2 2021 Total CFR = $77.7 M
Americas(predominantly U.S.)
$34.6 M
44.6%
Europe
Africa
$9.0 M
11.6%
Middle East Asia Pacific
$21.0 M
27.0%
(predominantly Middle East)
Africa8.3%
26.2%
31.8%
$13.1 M
16.8%
6 Months 2021Total CFR = $150.1 M
Americas (pred. U.S.)
EuropeAfrica
ME / Asia-Pac (pred. ME)
$66.5 M
44.3%
$40.8 M
27.2%
$24.6 M
16.4%
$18.2 M 12.1%
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Financial Overview ($ in MMs)
* Non-GAAP measure
Adjusted Operating Profit * Adjusted Net Income (loss)* Adjusted EBITDA *
Q2 ‘20 Q2 ‘21 6 Mo.‘20 6 Mo. ‘21
$4.8
$3.3
$7.0
$3.5 $3.6
$0.1
$3.1
$(2.4)
$3.8
$5.3
$8.5
$4.6
Q2 ‘20 6 Mo.‘20
Q2 ‘20 Q2 ‘21 6 Mo.‘20 6 Mo. ‘21
6 Mo. ‘21
Q2 ‘21
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Total Cash ($ in MMs)
6/30 9/30 12/31 3/31/21 6/30/21
$31.6$8.4*
$23.2
$42.1
$33.3
$8.8*$41.4
$34.2
$7.2*
$18.9
$7.8*
$26.7• Q2 2021 cash position improved from Q1 2021
• Q2 2021 total liquidity improved to $28.3 M
• Unrestricted cash at 12/31/2021 should exceed 12/31/20 unrestricted cash
9/30 –12/312021
(F)* Restricted Cash
$28.7
$21.0
$7.7*
16
Free Cash Flow ($ in MMs)
$6.2
6/30
* Non-GAAP measure
$7.7
9/30 12/31/20
$8.3
3/31/21
$(17.5)
• Return to positive free cash flow
• Expect to be cash flow positive for full year 2021
• Continuing focus on debt paydown 9/30 –12/312021
(F)
6/30/21
$3.3
17
Total Backlog ($ in MMs)
6/30/20 9/30/20 12/31/20 3/31/21 6/30/21
Backlog by Geography6/30/21
$647.9
Americas41.9%
Europe15.0%
Middle East / Asia / Pacific
24.7%
Africa18.4%
$672.9 $666.7
$681.3
$672.3
18
2021 Outlook
• Higher CFR to be driven by new awards, extensions to existing contracts
• Forecast significant improvement in unrestricted cash and free cash flow in 2H 2021
• Will balance with working capital requirements associated with an anticipated resumption in growth during 2021
CFR
$320 - $330 M
Adjusted EBITDA
$20 - $22 M
8% -11%*
5%-16%*
*Compared to FY 202019
Reconciliation Tables
(1) The write-off of leasehold improvements that was incurred during thequarter ended March 31, 2020 as a result of the sublease of theCompany's corporate headquarters as part of its cost reductioninitiatives was included in depreciation and amortization expense and isreflected in SG&A in the Company's consolidated statements ofoperations.
(2) Non-recurring activity includes the settlement of Hill's employer taxliability under its former subsidiary recognized during Q2 2020, whichis reflected in SG&A within the Company's consolidated statements ofoperations and the partial collection of a fully reserved receivable inLibya.21
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