Slide 1: Fiscal Third Quarter Earnings Conference Call
Fiscal Third Quarter Earnings Conference Call August 3, 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Certain statements contained in this presentation constitute forward-looking statements as such term is To supplement the financial results presented in accordance with generally accepted defined in Section 27A of the Securi
Slide 3: Today's agenda
Today’s agenda Business Review ▪ Advancing Justice and Equality ▪ COVID-19 Update ▪ Financial Summary ▪ Lines of Business Review Financial Review ▪ Q3 Results ▪ Segment Results ▪ Integration and Divestiture Update ▪ Balance Sheet and Cash Flow Outlook & Summary 3
Slide 4: Jacobs Action Plan for Advancing Justice and Equality
Jacobs Action Plan for Advancing Justice and Equality Leadership Commitment & Accountability Culture Building & Engagement Developing our Talent Growing our Business Amplify culture Recruit, retain and Contribute to of belonging advance Black structural change in employees the broader society ▪ Expa
Slide 5: COVID-19 Update: Challenging today. Reinventing tomorrow.
COVID-19 Update: Challenging today. Reinventing tomorrow. Keeping our people safe and engaged ▪ Ongoing communications; bi-weekly virtual town halls ▪ Increased emphasis on positive mental health ▪ Advancing future of work solutions Supporting our clients with COVID-19 solutions ▪ Rapid facility sol
Slide 6: A Resilient Business Model
A Resilient Business Model Diversified Portfolio Aligned to Multiple Growth Opportunities ▪ Successfully demonstrated high productivity in virtual work environment ▪ Achieved better than expected return to on-site operations ▪ Aligned to resilient economic sectors; upside from infrastructure stimulu
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including KeyW and Wood Nuclear) Maintaining Resilient Base while Expanding into Higher Value Solutions U.S. / International 85% / 15% ▪ Quickly ramped to virtual and COVID compliant on-site client requirements Government ~88% ▪ Bac
Slide 8: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q3 2020) Growth Through Competitive Advantage and Secular Trend Alignment U.S./International 67% / 33% Public / Private Sector 62% / 38% ▪ Globally connected talent driving integrated delivery and innovation Reimbursable and
Slide 9: Fiscal 2020 Q3 results
Fiscal 2020 Q3 results Revenue increased 3% y/y and Pro Forma Net Revenue decreased 4% y/y GAAP Operating Profit (OP) of $194M (+116%) and OP Margin of 6.0% (+310 bps) Adj. OP of $239M (+3%) and Net Revenue Adj. OP Margin of 8.9% (+10 bps) GAAP Net Earnings of $227M and EPS from Continuing Operation
Slide 10: Segment financials
Segment financials $’s in millions Q3 Q3 Y/Y 2019 2020 Critical Mission Solutions Operating Profit 76 90 17% as a % of revenue 6.6% 7.4% 80 bps People & Places Solutions Operating Profit 183 190 4% as a % of net revenue 12.4% 13.0% 60 bps Adjusted Unallocated Corporate Costs1 (27) (41) (14) Adjusted
Slide 11: Integration and divestiture update
Integration and divestiture update ECR Update ▪ Incurred ~$215M to date of expected ~$230M transaction, separation and restructuring costs ▪ Final stages of separation and restructuring to be reached by end of year Wood Nuclear Acquisition Update ▪ Closed Wood acquisition on March 6, 2020 ▪ On track
Slide 12: Balance sheet and cash flow
Balance sheet and cash flow Positive Free Cash Flow (FCF) Generation for Remainder of 2020 Q3 Leverage Metrics $ billions FY20 Q3 ▪ Q3 positive FCF1 of $332M; includes net ~$25M benefit from one-time items ▪ Now expect total FY20 reported FCF1 to approach $400M, including Q3 Net Debt Position $1.1 B
Slide 13: Outlook & Summary
Outlook & Summary Underlying Fiscal 2020 and 2021 COVID-19 Related Assumptions ▪ Fiscal 2020 outlook reflects continued virtual work environment with gradual improvement in on-site client delivery ▪ Physical distancing headwinds likely continuing into early fiscal 2021 Updating Fiscal Year 2020 Outl
Slide 14: Resilient business driven by strong culture and diversified portfolio aligned to growth opportunities
Resilient business driven by strong culture and diversified portfolio aligned to growth opportunities ▪ Continue to prioritize employee health and safety during COVID-19 crisis ▪ Launched action plan for advancing justice and equality As part of NASA's Mars 2020 Mission launch on July 30, Jacobs and
Slide 15: Environmental, Social and Governance (ESG) Summary
Environmental, Social and Governance (ESG) Summary Jacobs ESG Investor Page 2019 ESG Data Disclosure for Analysts Water Business Overview Environmental and PFAS Overview Jacobs FY19 revenue for global Environmental Market as defined by ENR was $4.3B 15
Slide 16: Jacobs: Delivering innovative solutions & disciplined execution
Jacobs: Delivering innovative solutions & disciplined execution Q3 Fiscal 2020 ($ in billions) Reimbursable and Net Revenue TTM Gross Backlog Lower Risk Fixed Public/Private As Reported As Reported U.S./Int’l Mix Talent Base Price Services Sector 76%/24% ~55,000 93% 74%/26% ▪ Increasing portfolio mi
Slide 17: Recast consolidated financials
Recast consolidated financials $’s in millions PF Q1 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 20181 Critical Mission Solutions Backlog 6,641 7,174 7,148 7,130 7,130 7,158 7,285 8,393 8,460 8,460 8,473 9,135 9,066 Revenue 842 924 1,021 1,069 3,85
Slide 18: Recast consolidated financials
Recast consolidated financials $’s in millions Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 1 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,404 22,569 22,569 22,671 23,291 23,674 Revenue 2,746 2,870 2,934 2,992 11,541 3,084 3,0
Slide 19: Other operational metrics from continuing operations
Other operational metrics from continuing operations $’s in thousands Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Depreciation (pre-tax) 25,607 1 26,764 24,423 21,567 98,361 1 18,211 23,491 25,851 20,508 88,061 22,152 22,566 22,276 Amortiza
Slide 20: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of June 26, 2020 net revenue, net earnings, EPS, operating profit and Effects of operating profit margin to the corresponding Restructuring, "adjusted" amounts. For the comparable periods Transaction a
Slide 21: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For Three Months Ended the comparable periods presented below, such adjustments June 28, 2019 consi
Slide 22: Reconciliation of net earnings from continuing operations to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA Three Months Ended Three Months Ended 6/28/2019 6/26/2020 Adj Net earnings from Continuing Operation
Slide 23: Non-GAAP financial measures (cont'd)
Non-GAAP financial measures (cont’d) Net revenue is calculated excluding pass-through revenue of the Company’s People & Places Solutions segment from the Company’s revenue from continuing operations. Adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted