Slide 1: First Quarter Fiscal 2019
First Quarter Fiscal 2019 December 18, 2018
Slide 2: Forward Looking Statement
Forward Looking Statement Forward Looking Statements: The presentation contains forward-looking statements, including those regarding our anticipated financial results for our first quarter 2019 and our guidance for future financial performance in our second quarter of fiscal year 2019 (including, n
Slide 3: Our People – Jabil's Most Important Asset
Our People – Jabil’s Most Important Asset BUSINESS CONFIDENTIAL | ©Jabil Inc. 2018. All Rights Reserved.
Slide 4: Q1 FY19 Results
Q1 FY19 Results What We’re Doing is Working $6.5Billion NET REVENUE Record Revenue, Core Operating Income & Core EPS Strong YoY Revenue Growth of 16% 3.9% Core Op Income of $254M CORE OPERATING MARGIN Acceleration of Select New Business Awards $200M+ in Capital Returns to Shareholders $0.9
Slide 5: FY19 Management Attention
FY19 Management Attention BROAD SUCCESSFUL OUTSTANDING MARKET/PRODUCT RAMP OF NEW FINANCIAL DIVERSIFICATION BUSINESS AWARDS PERFORMANCE Balanced Earnings and Selective Opportunities – FCF, Core Operating Cash Flow Execution and Economics Margin & Core EPS 5
Slide 6: Market Diversification
Market Diversification DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY19E $ in billions FY19E Mechanics $2.1 Automotive $1.6 Digital Print & Retail $2.2 Healthcare & Packaging $3.1 Industrial & Energy $2.5 Edge Devices & Accessories $4.2 5G / Wireless & Cloud $3.2 AR/VR/Lifestyl
Slide 7: Product Diversification
Product Diversification FY19 Revenue Projection Target: No Product or Product Mechanics Family greater than 5% of Enterprise Operating Income or Cash Healthcare & Flows in any fiscal year Packaging Action: 5G/Wireless Edge Devices & & Cloud Accessories Continue to apply our Solutions and Approach to
Slide 8: Ramp of New Business Awards
Ramp of New Business Awards HEALTHCARE CLOUD $350 million $850 million 5G / WIRELESS AUTOMOTIVE $300 million $300 million OTHER $350 million 8 8
Slide 9: New Business Award – Healthcare
New Business Award – Healthcare Jabil and Johnson & Johnson Medical Devices Companies (JJMDC) have entered into a long- term strategic collaboration, significantly expanding our existing 12-year partnership Expands our Elevates our Healthcare Portfolio Technical Capabilities FINANCIAL STRATEGIC Ac
Slide 10: New Business Award – CLOUD
New Business Award – CLOUD Jabil is thoughtfully moving into the CLOUD space with select Partners. Leverages our Elevates our Operational Excellence Engineering Capabilities FINANCIAL STRATEGIC Strong Free Cash Flows Scale and Global Reach Annual Revenue anticipated to grow in excess of $1B
Slide 11: FY19 Financial Performance Outlook
FY19 Financial Performance Outlook $ 25Billion NET REVENUE $3.00 CORE EPS 3.5% CORE OPERATING MARGIN $350Million $1.65Billion $865Million CORE OP INCOME ADJUSTED FCF CORE EBITDA 11 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
Slide 12: Financial Update
Financial Update December 18, 2018
Slide 13: First Quarter Fiscal Year 2019 Income Highlights
First Quarter Fiscal Year 2019 Income Highlights Three months ended November 30, (In millions, except for per share data) 2018 2017 Net revenue $6,506 $5,586 U.S. GAAP operating income $217 $146 U.S. GAAP net income $124 $64 U.S. GAAP diluted earnings per share $0.76 $0.35 Core operating income (non
Slide 14: First Quarter Segment Results
First Quarter Segment Results Diversified Manufacturing Services (DMS) Net Revenue Increase of 10% Core margin* (non-GAAP) of 5.6% Electronics Manufacturing Services (EMS) $6.5B DMS Net Revenue Increase of 22% EMS 46% 54% Revenue Core margin* (non-GAAP) of 2.4% Total Company Net Reve
Slide 15: Capital Return Framework
Capital Return Framework CUMULATIVE SHAREHOLDER RETURN WEIGHTED AVERAGE DILUTED FY16 – Q1FY19 SHARES OUTSTANDING Share Repurchases 225 Dividends 215 205 15% 195 reduction 185 175 $1.2B 165 193M 155 186M 175M 145 164M 135 125 FY16 FY17 FY18 Q1 FY19 15
Slide 16: Second Quarter 2019 Guidance
Second Quarter 2019 Guidance Segment Revenue Guidance Q2 FY19E YoY Change Diversified Manufacturing Services $2.6B Increase ~6% Electronics Manufacturing Services $3.5B Increase ~23% Consolidated Guidance Q2 FY19E Net revenue $5.8B - $6.4B U.S. GAAP operating income $116M - $168M U.S. GAAP dilut
Slide 17: Q&A
Q&A 17
Slide 18: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations
Slide 19: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (In thousands, except for per share data) (Unaudited) Three months ended November 30, 2018 November 30, 2017 Operating income (U.S. GAAP) $ 216,710 $ 145,754 Amortization of intangibles 7,646 9,979 Stock-base
Slide 20: Calculation of Return on Invested Capital and Core ROIC
JABIL INC. AND SUBSIDIARIES CALCULATION OF RETURN ON INVESTED CAPITAL AND CORE RETURN ON INVESTED CAPITAL (In thousands) (Unaudited) Three months ended November 30, 2018 November 30, 2017 Numerator: Operating income (U.S. GAAP) $ 216,710 $ 145,754 Tax effect (1) (43,083) (44,362) After-tax operating
Slide 21: Supplemental Data: Adjusted Free Cash Flow
JABIL INC. AND SUBSIDIARIES SUPPLEMENTAL DATA ADJUSTED FREE CASH FLOW (in thousands) (Unaudited) Three months ended November 30, 2018 November 30, 2017 Net cash used in operating activities (U.S. GAAP)(1) $ (91,693) $ (649,645) Cash receipts on sold receivables 96,846 596,058 Adjusted cash provided