Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Investor Presentation (August 2024)

45 slides from Jacobs Solutions's investor presentation, August 2024

1. Slide 1: Jacobs Investor Presentation

   Jacobs Investor Presentation August 2024

2. 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

3. Slide 3: Jacobs today

   Portfolio Overview FY23 Jacobs today By Sector Advanced 1, 2 By Region 2 APAC & Other Manufacturing 9% 5% ▪ Workforce: ~60,000 Cities & Places 8% ▪ Currently operates across four reporting segments that provide Infrastructure Space a full spectrum of professional services including consulting, 9% 32

4. Slide 4: Transformation to less volatile and higher value services and solutions

   Transformation to less volatile and higher value services and solutions PA Consulting , 7% PA Consulting Government Energy, Services, 18% Chemicals and Resources, 54% Critical Infrastructure CMS/C&I, 34% 1 1 FY14 FY23 FY25E $12.7B $16.4B Standalone Critical Infrastructure, Critical 28% Infrastructur

5. Slide 5: People & Places Solutions – Infrastructure & sustainability leader

   People & Places Solutions – Infrastructure & sustainability leader Approx. revenue by sector (FY 2023) Business Breakdown FY’23 Business breakdown Gross Revenue FY’22 revenue $9,554 million Advanced Adj. Net Revenue* $6,567 million (% of Total Adj. Net Revenue) (49%) Manufacturing, 7% $8,570 million

6. Slide 6: P&PS playing in key sectors aligned to critical infrastructure and sustainability

   P&PS playing in key sectors aligned to critical infrastructure and sustainability Transportation Water Cities & Places Energy & Environmental Health and Life Sciences Advanced Manufacturing ▪ Market leading position in ▪ Unique OneWater end-to-end ▪ Integrating data, technology, ▪ Responding to chal

7. Slide 7: Jacobs holds leading positions

   Jacobs holds leading positions Overall Infrastructure Health & Life Sciences №1 Top 500 in Design Firms №1 Wastewater Treatment №1 Pharmaceuticals №1 Top 100 Pure Designers №1 Sanitary & Storm Sewers №1 Healthcare №1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste Professional Services Re

8. Slide 8: Divergent Solutions – Innovative data and digital solutions

   Divergent Solutions – Innovative data and digital solutions 1 Approx. revenue by sector (FY 2023) Business breakdown FY’23 Revenue $947 million Commercial, 5% Adj. Net Revenue* $882 million Space, 14% (% of Total Adj. Net Revenue*) (7%) Infrastructure, 3% US / International 97% / 3% Energy & Environ

9. Slide 9: PA Consulting – Differentiated growth through ingenuity

   PA Consulting – Differentiated growth through ingenuity Approx. revenue by sector (FY 2023) Business breakdown FY’23 $1,158 million Revenue (% of Total Adj. Net Revenue) Transport, 9% (9%) Health & Life Sciences, 16% US / International 12% / 88% (76% UK) Energy & Utilities, 11% Public / Private 52%

10. Slide 10: Critical Mission Solutions – Poised to thrive independently

    Critical Mission Solutions – Poised to thrive independently Approx. revenue by sector (FY 2023) Business breakdown FY’23 $4,693 million Revenue (% of Total Adj. Net Revenue) (35%) Advanced Manufactureing, 2% US / International 76% / 24% Infrastructure, 7% Public / Private 82% / 18% National Security

11. Slide 11: Creating a New Government Services Leader

    Creating a New Government Services Leader Jacobs To Spin-off and Merge Its CMS and C&I Businesses with Amentum

12. Slide 12: Transaction rationale

    Transaction rationale ▪ Jacobs to spin-off and merge its CMS business with Amentum, creating a new independent, publicly- traded company ▪ Transaction perimeter includes Jacobs CMS segment plus the closely related Cyber and Intelligence unit (“C&I”) from Divergent Solutions (“DVS”) ▪ Culmination of

13. Slide 13: Transaction summary

    Transaction summary ▪ Reverse Morris Trust that is intended to be tax-free to shareholders for U.S. federal income tax purposes ▪ Jacobs and Jacobs shareholders to own up to 63% of combined company • Jacobs shareholders: 51% - 55% • Jacobs company retained stake: 7.5% - 8% depending on the achieveme

14. Slide 14: Separation Transaction Updates

    Separation Transaction Updates ▪ An updated Form 10 was publicly filed on August 5, 2024 with the Save the date U.S. Securities and Exchange Commission, but not yet declared effective. Jacobs Investor Day ▪ This filing is part of the planned spin-off of Critical Mission February 18, 2025 Solutions b

15. Slide 15: Fiscal 2024 Q3 Results

    Fiscal 2024 Q3 Results ©Jacobs 2024

16. Slide 16: Strategy: Boldly Moving Forward Q3 FY24 Results

    Q3 FY 24 Segment Adj. Net Revenue Strategy: Boldly Moving Forward PA Consulting , 8% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage Divergent ▪ Diverse sector exposure with recurring revenue provides substantial visibility Solutions, 6% ▪ Climate Response, Data Solu

17. Slide 17: Fiscal 2024 Q3 results

    Fiscal 2024 Q3 results Revenue up 1% y/y, adjusted net revenue increased 1% y/y GAAP Operating Profit (OP) of $260M and OP Margin of 6.2% Adj. OP of $386M up 7%; Adj. OP Margin (% of Adj. Net Revenue) of 11.3% GAAP Net Earnings from Continuing Operations of $146M GAAP EPS from Continuing Operations

18. Slide 18: Segment financials

    Segment financials $’s in millions Q3 2023 Q3 2024 Y/Y Y/Y CC People & Places Solutions Operating Profit 243 271 12% 12% as a % of adj. net revenue 14.4% 15.3% 95 bps Critical Mission Solutions Operating Profit 99 100 1.2% 1% as a % of revenue 8.3% 8.7% 35 bps PA Consulting Operating Profit 61 63 3.

19. Slide 19: Balance sheet and cash flow

    Balance sheet and cash flow Strong cash flow generation ▪ Q3 cash flow from operations (CFFO) $483M and FCF of $445M 1 ▪ Continue to expect >100% FY24 reported FCF conversion ▪ Balance sheet strength affords prudent capital deployment ▪ Expect to maintain an investment grade credit profile ▪ $1B Rep

20. Slide 20: Cost Optimization Plan and Outlook

    Cost Optimization Plan and Outlook ©Jacobs 2024

21. Slide 21: Cost Optimization Plan

    Cost Optimization Plan Driving >300 bps in margin expansion Over 300 bps of expected Standalone Jacobs Adj. EBITDA Margin Adj. EBITDA Margin expansion achieved 13.8%+ through: 10.8% ▪ Separation of lower margin business ▪ $140M of cost optimization initiatives ▪ Operating leverage 1 FY23 As-Reported

22. Slide 22: Outlook & Summary

    Outlook & Summary Consolidated Fiscal 2024 Outlook Fiscal Year 2024 Assumptions 1 FY23 FY24E Y/Y Growth (at mid-point) ▪ Fully diluted average share count: ~126M FY Adjusted EBITDA $1.44B $1.540B - $1.585B 9% ▪ FY adjusted effective tax rate: ~22% FY Adjusted EPS $7.20 $7.85 - $8.05 10% ▪ Q4 adjuste

23. Slide 23: Appendix

    - Appendix

24. Slide 24: Debt & interest overview

    Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of June 28, 2024 Tranche 6/28 Debt Q2 ’24 Rate Q3 ’24 Rate Revolver ($2.25B) $61M 6.7% 4.9% USD Term Loans $37.1 $186M 6.7% 6.7% $36.0 $36.1 $35.1 $35.5 $34.8 GBP Term Loans $823M 6.5% 6.5% $33.0 Total Floating $1,070M 6.5% 6.5%

25. Slide 25: Selected financial data

    Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 $’s in millions (unaudited) 2023 2023 2023 2023 2023 2024 2024 2024 People and Places Solutions Backlog 17243 17,563 17,498 17,345 17,345 17,857 17,929 19,277 Revenue 2227 2,345 2,470 2,512 9,554 2,470 2,522 2,565 Adj. Net Revenue 1517 1,661 1,687 1,70

26. Slide 26: Delivering sustainable solutions

    Delivering sustainable solutions FUJIFILM Diosynth Biotechnologies’ Larger- Hertfordshire County Council PUB, Singapore's National Water Agency City of Omaha Scale Biologics Manufacturing Site Hertfordshire, U.K. Singapore Omaha, NE, U.S. Holly Springs, NC, U.S. Supporting EPCM delivery of a $1.2 bi

27. Slide 27: Environmental, Social & Governance (ESG) at Jacobs

    Environmental, Social & Governance (ESG) at Jacobs Aligned with the United Nations Sustainable Development Goals, Jacobs is focused on creating positive social and economic impact while protecting our environment and improving resilience. ▪ Since 2019 we have voluntarily reported on a wide range of

28. Slide 28: Three needle-moving accelerators catalyze additional growth across all markets

    Three needle-moving accelerators catalyze additional growth across all markets 28

29. Slide 29: 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. 29

30. Slide 30: 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. Adjusted net revenue

31. Slide 31: Use of Non-GAAP financial measures and operating metrics (cont.)

    Use of Non-GAAP financial measures and operating metrics (cont.) Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Free cash flow (FCF) is calculated as net cash provided by operating activities as

32. Slide 32: Reconciliation of Earnings from Continuing Operations Before Taxes

    Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Before Taxes (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Earnings from Continuing Operations Before Taxes $ 226,150 $ 226

33. Slide 33: Reconciliation of Operating Profit to Adjusted Operating Profit

    Reconciliation of Operating Profit to Adjusted Operating Profit (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Profit $ 260,464 $ 269,741 $ 745,516 $ 797,408 Restructuring, Transaction and Other Charges (1) Focus 2023 Transformat

34. Slide 34: Reconciliation of Net Earnings to Adjusted Net Earnings

    Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Earnings Attributable to Jacobs

35. Slide 35: Reconciliation of Diluted EPS to Adjusted Diluted EPS

    Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Diluted Net Earnings from Continuing Operation

36. Slide 36: Reconciliation of Net Earnings to Adjusted EBITDA

    Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands) Twelve Months Three Months Ended Nine Months Ended Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Net Earnings Attributable to Jacobs from Continuing O

37. Slide 37: Reconciliation of Noncontrolling Interests to Adjusted Noncontrolling Interests

    Reconciliation of Noncontrolling Interests from Continuing Operations to Adjusted Noncontrolling Interests from Continuing Operations (in thousands) Twelve Three Months Ended Nine Months Ended Months Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Noncontrolling Inte

38. Slide 38: Reconciliation of Miscellaneous Expense to Adjusted Miscellaneous Expense

    Reconciliation of Miscellaneous Expense from Continuing Operations to Adjusted Miscellaneous Expense from Continuing Operations (in thousands) Twelve Three Months Ended Nine Months Ended Months Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Miscellaneous Expense fro

39. Slide 39: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs

    Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs Three Months Ended (in thousands) June 28, 2024 June 30, 2023 Other Corporate Expenses $ (118,040) $ (118,486) Amortization of intangibles 52,529 51,985 Other 4,718 4,016 Adjusted Unallocated Corporate Costs $ (60,793

40. Slide 40: Reconciliation of Free Cash Flow

    Reconciliation of Free Cash Flow (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net cash (used for) provided by operating activities $ 482,602 $ 321,061 $ 858,141 $ 755,400 Additions to property and equipment (37,664) (30,851) (82,772) (98

41. Slide 41: Reconciliation of Jacobs Constant Currency Adjusted Net Revenue

    Reconciliation of Jacobs Constant Currency Adjusted Net Revenue $’s in millions Net Revenue impact of Constant Currency Consolidated Line of People & Places Critical Mission PA Consulting Divergent Solutions Business Solutions Solutions Q3'24 Actual Revenue $3,406 $1,768 $1,156 $288 $194 Currency Im

42. Slide 42: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit

    Reconciliation of Jacobs Constant Currency Adjusted Operating Profit Adj. Unalloc. Corp. Costs $’s in millions Adj. OP impact of Constant Currency impact of Constant Currency Consolidated People & Critical PA Divergent Line of Places Mission Corporate Functions Consulting Solutions Business Solution

43. Slide 43: Reconciliation of Operating Profit to Adjusted Earnings Per Share

    Reconciliation of Operating Profit to Adjusted Earnings Per Share (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Profit $ 260,464 $ 269,741 $ 745,516 $ 797,408 Restructuring, Transaction and Other Charges 68,254 35,245 175,827 94

44. Slide 44: Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment

    Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment For the Three Months Ended For the Years Ended For the Three Months Ended For the Years Ended September September September September September September 30, September September Unaudited 29, 2023 30, 2022 29, 2023 30, 2022 29, 2023 20

45. Slide 45: Challenging today.

    | Challenging today. vacobs wane. in X f @

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