Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Stifel 2021 Virtual Cross Sector Insight Conference
26 slides from Jacobs Solutions's conference presentation, Jun 9, 2021
Slide 1: Investor Presentation
Investor Presentation Credit: Expo 2020 Dubai
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 defined in To supplement the financial results presented in accordance with generally accepted accounting Section 27A of
Slide 3: Jacobs: Challenging today, reinventing tomorrow
Jacobs: Challenging today, reinventing tomorrow Compelling investment thesis with strong track record of execution ▪ Global infrastructure modernization, advanced facilities and national security ▪ End-to-end sustainable solutions embedded throughout global offerings ▪ Effectively deploying capital
Slide 4: Jacobs' Transformation Journey
Jacobs’ Transformation Jacobs’ Journey Transformation Journey 2015 - 2016 2017 - 2020 Future Fix and Focus Inspiration, Innovation & Inclusion A Company like no other • New management team joins Jacobs • Transitioned to solutions-based company • Foundation of extremely efficient, competitive busines
Slide 5: Significant ESG growth opportunities across Jacobs
Significant ESG growth opportunities across Jacobs A sustainable business model aligning purpose and vision with both growth and positive impact ▪ ISS environmental and social scores significantly improve; annualized ESG related revenue approaching $5B ▪ Operationalizing sustainability across all as
Slide 6: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Energy Transition Sustainable Transport Net Zero Development Resource Management SuedLink: Integrating renewable sources King County Metro: new battery electric bus Meridian Water, North London: £7bn Western Dig
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including Buffalo Group and Wood Nuclear) Demonstrated resilient base and strong pipeline of innovative solutions U.S. / International 85% / 15% ▪ Multi-year enterprise contracts provide long-term stability Government ~90% ▪ High-va
Slide 8: CMS Leadership Team
CMS Leadership Team Dawne Hickton Steve Arnette Bruce Crawford Caesar Nieves Jennifer Richmond Brian Shelton Ron Wallace Karen Wiemelt Clive White EVP & COO SVP SVP SVP SVP SVP & CFO SVP SVP SVP CMS AERO Sales/Strategic Dev Cyber Intelligence National Security CMS Operations Support Nuclear Internat
Slide 9: A Deliberate and Focused Journey
A Deliberate and Focused Journey Growth-Oriented Strategic M&A: Capabilities, Customers, Contract Vehicles, Past Performance,People MISSION CRITICAL FOCUS Expands cyber, data analytics, and application development capabilities. Expands capabilities Adds Cyber capabilities Expands capabilities within
Slide 10: CMS Existing Capabilities 2013 Expanded Capabilities Today
CMS Existing Capabilities 2013 Expanded Capabilities Today ⌂ Operations and Maintenance ⌂ C5ISR ⌂ Platform/Program Testing and Evaluation ⌂ Nuclear ⌂ Software Design and Implementation ⌂ Cybersecurity ⌂ Facility Design, Build ⌂ Information Technology Services (advanced facilities, wind tunnels) ⌂ Fa
Slide 11: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q2 2021) Executing against high-value opportunities U.S./International 63% / 37% ▪ Deep domain expertise at scale across sectors Public / Private Sector 59% / 41% Reimbursable and Lower Risk Fixed ▪ Global delivery model enabl
Slide 12: PA Consulting Investment
PA Consulting Investment PA Consulting Snapshot (Revenue Q2 2021) Deep strategic expertise vital during and post pandemic U.S. / UK / International 10% / 79% / 11% ▪ Trusted partner for UK government’s COVID response Public / Private Sector 53% / 47% ▪ Engaged across sectors for digital transformati
Slide 13: Fiscal 2021 Q2 results
Oxford to Cambridge Arc We are currently implementing major adaptation pathway pilot studies for the Environment Agency Fiscal 2021 Q2 results across three important national projects for flood risk management in the U.K. Revenue increased 4% y/y and Net Revenue up 7% y/y GAAP Operating (Loss) Profi
Slide 14: Segment financials
Segment financials $’s in millions Q2 Q2 Y/Y 2020 2021 Critical Mission Solutions Operating Profit 84 114 35% as a % of revenue 6.8% 8.7% 190 bps People & Places Solutions Operating Profit 189 202 7% as a % of net revenue 12.3% 12.9% 70 bps Testing VIPER's suspension NASA’s VIPER rover is an autonom
Slide 15: Focus 2023 and integration update
Focus 2023 and integration update Focus 2023: Enhancing Operations for Next Stage of Growth ▪ Incurred ~$5M charge in Q2 2021 related to Focus 2023 ▪ ~$12M of cash flow impact in Q2 Acquisition integration and other net charges of $13M PA Consulting Investment ▪ Incurred $42M in P&L deal and other c
Slide 16: Balance sheet and cash flow
Balance sheet and cash flow Q2 Leverage Metrics Continued strong cash flow generation for Q2 2021 $ billions FY21 Q2 ▪ Q2 cash flow from operations $238 million; driven by improved collections Q2 Net Debt Position $2.6B ▪ Q2 reported FCF1 $209M, including ~$116M of net one-time headwinds Worley equi
Slide 17: Outlook & Summary
Outlook & Summary Additional Metrics FY21 Outlook $ billions Q2 FY21 share count 131M ▪ Updating adjusted EBITDA outlook to $1,200 to $1,270M from $1,075 to $1,155M Q2 FY21 effective Tax Rate ~24% ▪ Updating adjusted EPS outlook to $6.00 to $6.30 from $5.30 to $6.00, assumes ~1% of net share count o
Slide 18: We do things right. We challenge the accepted. We aim higher.
We do things right. We challenge the accepted. We aim higher. We live inclusion. 18
Slide 19: Environmental, Social and Governance (ESG) summary
Environmental, Social and Governance (ESG) summary A sustainable business model aligning purpose and vision with both growth and positive impact ▪ Fully integrating purpose with profit and operationalizing sustainability across all aspects of our business ▪ Achieved 100% renewable energy for ▪ Drive
Slide 20: Recast consolidated financials
Recast consolidated financials Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 Critical Mission Solutions Backlog 7,158 7,285 8,393 8,460 8,460 8,473 9,135 9,066 9,104 9,104 9,683 9,779 Revenue 1,035 1,060 1,156 1,300 4,551 1,182 1,243
Slide 21: Recast consolidated financials
Recast consolidated financials Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 Backlog 20,335 20,713 22,404 22,569 22,569 22,671 23,291 23,674 23,818 23,818 25,105 25,571 Revenue 3,084 3,092 3,170 3,393 12,738 3,360 3,427 3,260 3,520 13
Slide 22: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $’s in thousands FY 2019 FY 2020 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Depreciation (pre-tax) 18,211 23,491 25,851 20,508 88,061 22,152 22,566 22,276 24,076 91,070 22,989 25,090 Amortization of Intangibles
Slide 23: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of April 2, 2021 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 24: 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 consist of amounts
Slide 25: Reconciliation of net earnings to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Three Months Ended Three Months Ended 3/27/2020 4/2/2021 Adj Net earnings from Continuing Operations (1) $ 186,188 $ 218,289 Adj. Income Tax Expense for Continuing Operations (1) (38,060) (73,541) Adj
Slide 26: 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
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