Slide 1: 2021 Fourth Quarter Earnings & Investor Briefing
2021 FOURTH QUARTER EARNINGS & INVESTOR BRIEFING September 29, 2021
Slide 2: Welcome
WELCOME ADAM BERRY September 29, 2021
Slide 3: Our Foundation is Solid
Our Foundation is Solid JABIL 2021 ABOUT JABIL: OUR FY21 FINANCIAL HIGHLIGHTS: WE MAKE ANYTHING POSSIBLE AND $29.3B 100+ EVERYTHING BETTER FOR OVER 400 OF THE WORLD’S MOST RECOGNIZABLE 4.2% $5.61 $640M SITES LOCATED STRATEGICALLY BRANDS. OUR AGILITY AND GLOBAL AROUND THE SCALE ENABLE US TO RESPOND R
Slide 4: Key End-Markets: Intentional Diversified Growth
Intentional Diversified Growth Key End-Markets REVENUE REVENUE (In billions) BY END-MARKET Digital Print 11% Mobility & Retail CAGR $29.3 Industrial $27.3 & Semi-Cap $25.3 Healthcare & $22.1 Packaging $19.1 5G Wireless & Cloud Connected Devices Networking & Storage Automotive & FY17 FY18 FY19 FY20 F
Slide 5: Long-term Partnerships
Long-term Partnerships MOBILITY & CONNECTED DIGITAL PRINT & DEVICES RETAIL INDUSTRIAL & SEMI-CAP HEALTHCARE & PACKAGING 5G WIRELESS & CLOUD AUTOMOTIVE NETWORKING & TRANSPORTATION & STORAGE 5
Slide 6: Financial Priorities: Shareholder Focus
Financial Priorities Shareholder Focus EXPAND INCREASE GENERATE OPERATING MARGINS EARNINGS PER SHARE STRONG CASH FLOWS ALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY 6
Slide 7: Financial Update
Financial Update ❖ FY21 Results ❖ End-Market & Supply Chain Update MIKE DASTOOR ❖ FY22 Outlook CHIEF FINANCIAL OFFICER
Slide 8: Business Update
Business Update ❖ Our People ❖ Our Culture ❖ Factory Innovation MARK MONDELLO CHIEF EXECUTIVE OFFICER
Slide 9: Forward Looking Statement
Forward Looking Statement Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for the fourth quarter and full fiscal year 2021; our guidance for future financial performance in our first quarter of fiscal year
Slide 10: 2021 Fourth Quarter Earnings
2021 FOURTH QUARTER EARNINGS MIKE DASTOOR September 29, 2021
Slide 11: Financial Priorities: Shareholder Focus
Financial Priorities Shareholder Focus EXPAND INCREASE GENERATE OPERATING MARGINS EARNINGS PER SHARE STRONG CASH FLOWS ALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY 11
Slide 12: FY 2021 Highlights
Fourth Quarter FY 2021 Highlights ✓ Revenue NET REVENUE Year-over-year growth in Mobility, Automotive • and Healthcare $ 7.4 BILLION CORE OP MARGIN* ✓ Core Operating Margin* • Solid operating leverage 4.2% CORE EARNINGS PER SHARE1 ✓ Core Earnings Per Share1 $1.44 • Strong year-over-year growth *Core
Slide 13: Income Highlights
Fourth Quarter & FY21 Income Highlights THREE MONTHS ENDED FISCAL YEAR ENDED AUGUST 31, AUGUST 31, (In millions, except for per share data) 2021 2020 2021 2020 Net revenue $7,409 $7,300 $29,285 $27,266 U.S. GAAP operating income $265 $197 $1,055 $500 U.S. GAAP net income $175 $68 $696 $54 U.S. GAAP
Slide 14: Segment Results
Fourth Quarter FY21 Segment Results DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue Increase of 9.7% ▪ Core margin* (non-GAAP) of 4.1% ELECTRONICS MANUFACTURING SERVICES (EMS) EMS $7.4B ▪ Net Revenue Decrease of 6.4% 47% DMS ▪ Core margin* (non-GAAP) of 4.3% REVENUE 53% TOTAL COMPANY ▪ Net Re
Slide 15: Revenue by End-Markets
Our Portfolio Revenue by End-Markets DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY20 FY21 $ in billions FY20 FY21 Auto & Transportation $1.7 $2.2 Digital Print & Retail $2.3 $2.3 Healthcare & Packaging $4.2 $4.5 Industrial & Semi-Cap $3.5 $3.4 Connected Devices $4.0 $4.5 5G Wi
Slide 16: Net Capex
Net Capex FY21 FY21 Net Capex ($ millions) Fiscal Year Ended August 31, 2021 Acquisition of property, plant and equipment ($1,159) Proceeds and advances from sale of property, $366 plant and equipment Net Capex ($793) See U.S. GAAP to non-GAAP definitions and reconciliations located at https://inves
Slide 17: Strong Cash Flow & Disciplined Investment
Strong Cash Flow & Disciplined Investment ($ millions) $1,433 $1,400 $1,193 $1,257 $1,200 $1,000 $787 $796 $793 $800 $600 $400 $200 $0 FY19 FY20 FY21 Cash Flow from Operations Net CapEx Net capex1 as a % of net revenue 3.1% 2.9% 2.7% 1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GA
Slide 18: Consistent Shareholder Return
Consistent Shareholder Return CUMULATIVE SHAREHOLDER RETURN SHARE COUNT (millions) FY13 – FY21 Share Repurchases 220 Dividends 200 29% reduction 180 160 $3B 140 203 194 192 187 178 165 154 150 120 144 100 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 18
Slide 19: A Tremendous Year
Jabil 2021 A Tremendous Year CORE OP INCOME & CORE MARGIN1 CORE EPS1 ADJ. FREE CASH FLOW1 (In millions) (In millions) $1,241 $640 $5.61 $503 $461 $877 $864 $768 4.2% $2.98 $2.90 $2.62 $247 3.5% 3.5% 3.2% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 1 See U.S. GAAP to non-GAAP reconcil
Slide 20: Secular Trends Driving Growth Across Multiple End-Markets
Secular Trends Driving Growth Across Multiple End-Markets HEALTHCARE AUTOMOTIVE Rising Costs, Aging Population, Climate Change, Fuel Efficiency Connectivity, Digitization ACE - Autonomous, Connected, Electric PACKAGING 5G Sustainability, Infrastructure & Devices. Eco-friendly & Accelerated Connectiv
Slide 21: Secular Trends: Healthcare
Secular Trends Healthcare WHAT WE DO: DRIVING GROWTH END-TO-END GLOBAL SOLUTIONS RISING AGING DIAGNOSTICS & ORTHOPEDICS COSTS POPULATION INSTRUMENTATION MEDICAL PHARMACEUTICAL PERSONALIZED DIGITIZATION DEVICES DELIVERY DEVICES CARE 21
Slide 22: Secular Trends: Vehicle Electrification
Secular Trends Vehicle Electrification A C E ADAS / AUTONOMOUS ELECTRIFICATION Short-term: emergency braking, lane CONNECTIVITY Increasing electrification of the powertrain departure, etc. Remote diagnostics, over the air updates, from mild HEV’s to full HEV’s, PHEV’s and EV’s, Long-term: hands, eye
Slide 23: Secular Trends: Infrastructure Spending
Secular Trends Infrastructure Spending • 5G • MICRO-GRID • CLOUD • SMART INFRASTRUCTURE • SEMI-CAP • POWER GENERATION • EDGE COMPUTING • ENERGY STORAGE 23
Slide 24: Continued Mix Shift in Targeted Areas
Revenue by End-Markets Continued Mix Shift in Targeted Areas DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING FY22 Y/Y FY22 Y/Y $ in billions FY20 FY21 Growth* $ in billions FY20 FY21 Growth* Auto & Transportation $1.7 $2.2 41% Digital Print & Retail $2.3 $2.3 13% Healthcare & Packaging $4.2 $4.5
Slide 25: Driving Margin Expansion
Continued Mix Shift in Targeted Areas Driving Margin Expansion Gross Profit Margin Core Operating Margin * * Core margin defined as core operating income divided by net revenue 25
Slide 26: Disciplined Investment: Net Capex
Net Capex Disciplined Investment FY22E Net Capex Net Capex ($ millions) ($ millions) Net Capex FY22E $796 $830 900 $787 $793 Growth Investment $330 800 700 Maintenance Investment $500 600 500 3.1% • Replacement 400 2.9% 300 2.7% 2.6% • Factory Innovation 200 100 • Engineering & Innovation 0 Company
Slide 27: Consistent Free Cash Flow Generation
Solid Liquidity Profile Consistent Free Cash Flow Generation Drivers of Future CORE EBITDA Adjusted FCF Free Cash Flow ($ billions) ($ millions) $2.3 $2.1 $700 $640 1. Earnings expansion $1.6 $1.6 $503 $461 2. Working capital efficiencies 3. Disciplined investment FY19 FY20 FY21 FY22E FY19 FY20 FY21
Slide 28: Actively Driving Core ROIC
Actively Driving Core ROIC CORE RETURN ON CONSISTENT RETURNS INVESTED CAPITAL • Aligning investments with higher growth and more profitable end- markets 30% 21% 20% • Disciplined approach towards 19% optimal capital structure and investor returns FY18 FY19 FY20 FY21 See U.S. GAAP to non-GAAP definit
Slide 29: Solid Capital Structure
Financial Flexibility Solid Capital Structure FINANCIAL STRENGTH ($ in millions) 3,000 2,500 • Balance sheet debt of $2.9B, as of August 31, 2021 2,000 2 • Credit Agency Ratings/Outlook 1,500 ➢ Moody’s: Baa3 / Stable 1,000 ➢ S&P: BBB- / Stable 500 ➢ Fitch: BBB- / Positive - 2022 2023 2024 2025 2026
Slide 30: Capital Allocation Framework
Balanced and Thoughtful Capital Allocation Framework Cash flow from operations ➢ Continued reinvestment to expand Net Capex capabilities and support customer ~ 55% relationships Free Cash Flow ➢ Prioritize share repurchases & dividends Debt Optimization Share Repurchases & M&A & Dividends ~ 20% ~ 80
Slide 31: First Quarter FY22 Guidance
First Quarter FY22 Guidance Segment Revenue Guidance Q1 FY21 Q1 FY22E YoY Change ▪ Diversified Manufacturing Services $4.2B $4.7B Increase 10% ▪ Electronics Manufacturing Services $3.6B $3.6B 0% Consolidated Guidance Q1 FY22E Net revenue $8.0B - $8.6B U.S. GAAP operating income $321M - $381M U.S. GA
Slide 32: The Momentum Continues
Our Outlook The Momentum Continues CORE OP INCOME & CORE OP MARGIN CORE EPS ADJ. FREE CASH FLOW (In millions) (In millions) $1,405 $700 $1,241 $6.35 $640 $5.61 $503 $461 $877 4.5% $864 $768 4.2% $2.98 $2.90 $2.62 $247 3.5% 3.5% 3.2% FY18 FY19 FY20 FY21 FY22E FY18 FY19 FY20 FY21 FY22E FY18 FY19 FY20
Slide 33: Our FY22 Outlook
Our FY22 Outlook Deliver a Credible Financial Plan NET REVENUE CORE OP MARGIN CORE EPS FREE CASH FLOW $31.5 4.5% $6.35 $700 BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY22 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
Slide 34: We have a Vision
We have a Vision To be the most Technologically Advanced and Trusted manufacturing solutions provider. MARK MONDELLO September 29, 2021 34
Slide 35: Our People
OUR PEOPLE A Team which promotes an Inclusive Environment Thank you for being your True Self
Slide 36: Construct and Pedigree
Jabil Construct and Pedigree OUR SOLUTIONS OUR OUTLOOK OUR APPROACH OUR PORTFOLIO 36
Slide 37: A more Diverse, Equitable & Inclusive Jabil
Our Approach A more Diverse, Equitable & Inclusive Jabil We’re Listening We’re Learning Dei Enterprise Strategy We’re Actioning BELONGING Mitigating Inclusive Biases Leadership Diverse Talent Development
Slide 38: A more Sustainable Jabil
Our Approach A more Sustainable Jabil New strategy and our 3 sustainability pillars Environmental Action Factories strive for 50% Greenhouse Gas reduction by 2030 maximum landfill diversion All Factories to have a plan Seek more circular OUR PEOPLE & OUR OPERATIONS OUR INNOVATIVE for conserving wate
Slide 39: Enabled by Structure, Investments, Customers
Our Solutions Enabled by Structure, Investments, Customers IT Operations Supply Chain COLLABORATION EXECUTION OBSESSION AT OUR VERY CORE WE ‘BUILD STUFF’
Slide 40: Critical and Trusted Partner
Our Portfolio Critical and Trusted Partner Digital Print & Retail Mobility Industrial & Semi-Cap Healthcare & Packaging 5G Wireless & Cloud Connected Devices Networking & Automotive & Transportation Storage
Slide 41: Intentionally Diversified and Evermore Resilient
Our Portfolio Intentionally Diversified and Evermore Resilient DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY20 FY21 FY22 $ in billions FY20 FY21 FY22 Auto & Transportation $1.7 $2.2 $3.1 Digital Print & Retail $2.3 $2.3 $2.6 Healthcare & Packaging $4.2 $4.5 $5.0 Industrial & S
Slide 42: Credible FY22 Financial Plan
Our Outlook Credible FY22 Financial Plan NET REVENUE CORE OP MARGIN CORE EPS FREE CASH FLOW $31.5 4.5% $6.35 $700 BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY22 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
Slide 43: What we're doing is Working
Our Outlook What we’re doing is Working REVENUE CORE OP INCOME CORE EPS (In billions) (In millions) 10% 15% 25% CAGR CAGR CAGR $1,405 $31.5 $1,241 $6.35 $29.3 $5.61 $27.3 $25.3 $22.1 $877 $864 $768 $2.62 $2.98 $2.90 FY18 FY19 FY20 FY21 FY22E FY18 FY19 FY20 FY21 FY22E FY18 FY19 FY20 FY21 FY22E See U.
Slide 44: Our Purpose
OUR PURPOSE Enables our path forward, as we care for each other, treat one another with complete respect, give back to those in need and respect the environment. 44
Slide 45: Trust and Belief in our Team
Our Path Forward Trust and Belief in our Team • A well Diversified Portfolio with solid exposure to Secular Trends • Proven ability to Execute fueled by operational investments • Innovative solutions put forth as we obsess about our Customers • Unique combination of Approach, Structure, Scale and Ex
Slide 46: Our People
OUR PEOPLE A Team which promotes an Inclusive Environment Thank you for being your True Self
Slide 47: Our Path Grounded by a Straight-forward Strategy
Our Path Grounded by a Straight-forward Strategy ✓ Jabil has undergone deep and sustainable improvements ✓ The business is extremely well-diversified ✓ Demand for innovative global manufacturing partners with robust supply chain capabilities has never been stronger ✓ Jabil is well-positioned to bene
Slide 48: Mark Mondello, Mike Dastoor, Adam Berry
MARK MONDELLO MIKE DASTOOR ADAM BERRY CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER VP, INVESTOR RELATIONS
Slide 49: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations 49
Slide 50: Jabil Inc. and Subsidiaries: Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (In millions, except for per share data) (Unaudited) Three months ended Fiscal year ended August 31, 2021 August 31, 2020 August 31, 2021 August 31, 2020 Operating income (U.S. GAAP) $ 265 $ 197 $ 1,055 $ 500