Slide 1: Jacobs Fiscal 2023 Second Quarter Results
Jacobs Fiscal 2023 Second Quarter Results May 9, 2023 ©Jacobs 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to a
Slide 3: Today's agenda
Today’s agenda ▪ Overview − Separation of CMS − Performance overview − Strategy review ▪ Financial review − Q2 Fiscal 2023 results − Q2 Segment review − Balance sheet and cash flow ▪ Outlook & Summary ▪ Q&A 3 ©Jacobs 2023
Slide 4: Establishing two leading companies
Establishing two leading companies Jacobs (excluding CMS) Critical Mission Solutions Premier Technology-Enabled Solutions Provider Leading Pure-Play Government Services Provider Focused on Critical Infrastructure and Sustainability ~$10.5B ~12% ~$4.4B ~8% FY22 Revenue FY22 Adj. Op. Margin(1) FY22 Re
Slide 5: Separation details
Separation details Perimeter ▪ Critical Mission Solutions segment ▪ Spin-Off of Critical Mission Solutions to Jacobs shareholders Transaction Structure ▪ Intended to be tax-free to Jacobs shareholders for U.S. federal income tax purposes ▪ Committed to maintaining an investment grade profile for Jac
Slide 6: Our cultural transformation: An inspirational journey for all
Our cultural transformation: An inspirational journey for all + Agile + Learning Culture Innovation + Inclusion & Diversity Empowerment & Accountability When we learn and grow together, we activate Empowerment & Accountability, Inclusion & Diversity, and Innovation. We lead, embrace, and anticipate
Slide 7: Strategy: Boldly Moving Forward / Track record of execution
Q2 2023 Segment Net Revenue Strategy: Boldly Moving Forward PA Consulting, 9% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage ▪ Diverse sector exposure with recurring revenue provides substantial visibility Divergent People & Places Solutions, 7% Solutions, 50% ▪ Cli
Slide 8: A recognized global vision for sustainability
A recognized global vision for sustainability Gold Medal for International Corporate Achievement in Sustainable Development awarded by The World Environment Center 8 ©Jacobs 2023
Slide 9: Well positioned for long-term growth
Well positioned for long-term growth Transportation Legislative drivers Water & Environment Supply Chain and Energy Transition = Double Digit Pipeline Growth Technology Investments Advanced Facilities ▪ Semiconductors ▪ Life Sciences ▪ Electric Vehicles 9 ©Jacobs 2023
Slide 10: Fiscal 2023 Q2 results
Fiscal 2023 Q2 results Revenue up 6% y/y, Net Revenue up 5% y/y and up 8% in constant currency “ We have delivered a robust second GAAP Operating Profit (OP) of $290 and OP Margin of 7% Adj. OP of $356M up 7% and up 11% in constant currency; Net Revenue Adj. OP Margin of 10.4% quarter focused on “ G
Slide 11: Segment financials
Segment financials $’s in millions Q2 2022 Q2 2023 Y/Y Y/Y CC2 People & Places Solutions Operating Profit 193 232 20.5% 25.4% as a % of net revenue 12.0% 13.5% 148 bps Critical Mission Solutions Operating Profit 95 94 -0.7% 2.8% as a % of revenue 8.3% 7.9% (45) bps PA Consulting Operating Profit 68
Slide 12: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation “ We have delivered solid second quarter Q2 cash flow from operations (CFFO) $132M and FCF1 of $97M, resulting in YTD 104% ▪ FCF conversion of Net Income results with strong ▪ Expect ~100% underlying FY23 cash flow conversion to adjusted net in
Slide 13: Outlook & Summary
Outlook & Summary Reiterating Fiscal 2023 Outlook ▪ Diverse portfolio of recurring revenue provides opportunity to grow under multiple economic scenarios with upside from Climate Response, Data Solutions and Consulting & Advisory accelerators ▪ The company has revised its outlook for fiscal 2023 adj
Slide 14: Our foundation is strong
Our foundation is strong Purpose To create a more connected, sustainable world. Values We do things right. We challenge the accepted. We aim higher. We live inclusion. Employee Value Jacobs. A world where you can. Statement Where you Where you Where you can be you. can do. can grow. 14 ©Jacobs 2023
Slide 15: Debt & Interest overview
3 As of March 31st, 2023 Fixed vs Floating Debt Trend Debt & Interest overview $19.0 $19.2 $17.9 $21.6 $25.1 $31.1 $37.1 $33.0 $14.9 Fixed Debt ($B’s) $1.4 $0.9 $1.4 $1.4 $1.4 Floating Debt ($B’s) $1.4 $1.4 $1.4 $1.4 Net Interest Expense ($M’s) $2.2 $2.6 $2.1 $1.7 $1.7 $1.8 $2.0 $2.1 $1.5 Q2’21 Q3’2
Slide 16: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions (unaudited) 2022 2022 2022 2022 2022 2023 2023 People and Places Solutions Backlog 16,930 16,950 17,527 17,014 17,014 17,243 17,563 Revenue 1,921 2,163 2,223 2,228 8,535 2,227 2,345 Pass-Through Revenue (472) (564) (636) (647) (2,319) (660
Slide 17: Environmental, social and governance summary
▪ Climate Action Plan 2022 Environmental, social and governance summary ▪ ▪ FY22 ESG Disclosures PlanBeyond 2.0 ▪ Climate Risk Assessment FY22 A sustainable business model aligning purpose and vision with both growth and ▪ Approved Science-Based positive impact: Targets ▪ Fully integrates purpose wi
Slide 18: Delivering sustainable solutions
Delivering sustainable solutions No. 1 Top 500 Design Firms Engineering News-Record Sustaining LA’s Supporting clean energy Integrating renewable sources Offshore wind capacity building drinking water supply in the U.K. into Germany’s electricity grid “ Together with our clients, we continue to conc
Slide 19: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics In this presentation, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Net revenue is calcul
Slide 20: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjusted EBITDA, and the resulting calculation of adjusted EBITDA margin, is calculated by adding income tax expense, depreciation expense and adjusted interest expense, and deducting interest income from adjusted net earnings from con
Slide 21: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 21 ©Jacobs 2023
Slide 22: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 22 ©Jacobs 2023
Slide 23: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 23 ©Jacobs 2023
Slide 24: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 24 ©Jacobs 2023
Slide 25: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 25 ©Jacobs 2023
Slide 26: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 26 ©Jacobs 2023
Slide 27: Reconciliation of net earnings to adjusted EBITDA and free cash flow
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA and free cash flow 27 ©Jacobs 2023
Slide 28: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 28 ©Jacobs 2023
Slide 29: Reconciliation of Jacobs Constant Currency Net Revenue
Reconciliation of Jacobs Constant Currency Net Revenue Consolidated PA Consulting Net Revenue impact of CC ($M) Net Revenue impact of CC ($M) Q2'23 Actual Revenue $3,432 Q2'23 Actual Revenue $301 Currency Impact 101 Currency Impact 31 Net Revenue in CC $3,532 Net Revenue in CC $332 Q2'22 Revenue $3,
Slide 30: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit Consolidated PA Consulting Adj. OP impact of Constant Currency ($M) OP impact of Constant Currency ($M) Q2'23 Adj. Operating Profit $356 Q2'23 Operating Profit $66 Currency Impact 12 Currency Impact 7 Adjusted Operating Profit in C