Slide 1: Jacobs Fiscal Fourth Quarter and Full Year Earnings Results
Jacobs Fiscal Fourth Quarter and Full Year Earnings Results November 21, 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Certain statements contained in this presentation constitute forward-looking statements within the meaning of the Private Securities To supplement the financial results presented in accordance with Litigation Reform Act of 1
Slide 3: Today's agenda
Today’s agenda ▪ Overview − Strategy and performance update − Data Solutions accelerator ▪ Lines of business review − Critical Mission Solutions − People & Places Solutions − PA Consulting ▪ Financial review − Q4 and Fiscal 2022 results − Balance sheet and cash flow ▪ Outlook & Summary 3
Slide 4: Jacobs: Challenging today. Reinventing tomorrow.
Jacobs: Challenging today. Reinventing tomorrow. Q4 2022 Line of Business Operating Profit Strategy: Boldly Moving Forward 13% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage ▪ Diverse sector exposure with recurring revenue provides substantial visibility ▪ Climate R
Slide 5: Delivering Data Solutions Across Key Areas of Domain Expertise
Delivering Data Solutions Across Key Areas of Domain Expertise Transportation Platform Water Platform National Security Platform StreetLight Intelligent O&M BlackStack – SearchLynx Software as a Service (SaaS) platform providing Data analytics solution aggregates and analyzes Software accelerating s
Slide 6: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot Deep domain expertise + data-driven solutions + global scale (Net Revenue Q4 2022) ▪ Impact of expertise at scale driving differentiated solutions U.S. / International 62% / 38% ▪ Global delivery model benefiting capacity demands and talen
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including BlackLynx) Strong base of recurring revenue; new business pipeline margin-accretive U.S. / International 82% / 18% ▪ Multi-year enterprise contracts provide long-term stability Government ~88% ▪ High-value solutions and ef
Slide 8: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q4 2022) Unique combination of outcome-driven strategic and digital consulting ▪ End-to-end innovation by combining strategists, scientists and digital experts UK / US / Other 78% /13% / 9% ▪ Deep industry expertise across a diverse set of sectors and cu
Slide 9: Fiscal 2022 Q4 results
Fiscal 2022 Q4 results Revenue up 8% y/y, Net Revenue up 6% y/y and up 11% in constant currency GAAP Operating Profit (OP) of $309M and OP Margin of 8% Adj. OP of $347M up 15% and up 19% in constant currency; Net Revenue Adj. OP Margin of 10.7% GAAP Net Earnings from Continuing Operations of $225M T
Slide 10: Fiscal 2022 results
Fiscal 2022 results Revenue up 6% y/y, Net Revenue up 8% y/y and up 10% in constant currency GAAP Operating Profit (OP) of $918M and OP Margin of 6.2% Adj. OP of $1,314M up 11% and up 14% in constant currency; Net Revenue Adj. OP Margin of 10.4% GAAP Net Earnings from Continuing Operations of $644M
Slide 11: Segment financials
Segment financials $’s in millions Q4 2021 Q4 2022 Y/Y Y/Y CC2 Critical Mission Solutions Operating Profit 115 95 -17.1% -14.1% as a % of revenue 9.1% 6.9% (223) bps People & Places Solutions Operating Profit 177 231 30.5% 39.2% GeoPod “ as a % of net revenue 11.7% 14.5% 275 bps PA Consulting Operat
Slide 12: Segment financials
Segment financials $’s in millions 2021 2022 Y/Y Y/Y CC2 Critical Mission Solutions Operating Profit 447 424 -5.1% -3.2% as a % of revenue 8.8% 8.1% (68) bps People & Places Solutions Operating Profit 780 824 5.5% 9.9% Extreme search “ as a % of net revenue 13.0% 13.2% 16 bps PA Consulting Operating
Slide 13: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ FY22 cash flow from operations (CFFO) $475M and FCF1 of $347M; includes net one-time cash headwinds of $526M; comprised of $475M Inpex legal matter, $55M CARES Act repayment and a net benefit of $4M from other items ▪ Achieved 97% FY22 adj. F
Slide 14: Outlook & Summary
Outlook & Summary Initiating Fiscal 2023 Outlook ▪ Diverse portfolio of recurring revenue provides opportunity to grow under multiple economic scenarios with upside from Climate Response, Consulting & Advisory and Data Solutions accelerators ▪ Based on fiscal 2022 average rates, the company's outloo
Slide 15: Challenging today. Reinventing tomorrow.
Challenging today. Reinventing tomorrow. Our passion and commitment to take immediate action on climate change comes from our leadership and our 60,000 employees who, together, are pushing the limits of what’s possible by creating sustainable solutions that leave no one behind. We do things right. W
Slide 16: Debt & Interest Overview
Debt & Interest Overview Fixed vs Floating Debt Trend 4 $14.9 $25.1 $31.1 Fixed Debt ($B’s) $19.0 $17.9 $21.6 Floating Debt ($B’s) $19.2 3 $1.39 Net Interest Expense ($M’s) $1.43 $1.38 $14.2* $1.43 $1.42 $1.42 2 $1.42 1 $1.43 $2.06 $2.18 $2.03 $1.70 $1.47 $1.71 $1.69 0 $0.37 Q1 ’21 Q2 ’21 Q3 ’21 Q4
Slide 17: Jacobs Fiscal 2022 Segment Summary
Jacobs Fiscal 2022 Segment Summary Critical Mission People & Places PA Consulting Solutions Solutions Investment Gross revenue $8,570 million Revenue (% of Total) $5,234 million $1,119 million Net revenue $6,251 million US / International 82% / 18% 62% / 38% 13% / 87% (~77% UK) Public / Private 88%
Slide 18: Office of Global Climate Response and Environmental, Social & Governance (ESG)
Office of Global Climate Response and Climate Response Environmental, Social & Governance (ESG) Climate change: the greatest challenge and opportunity of Energy Transition Natural Resource Stewardship our generation ▪ Clean energy generation ▪ Integrated water management ▪ Grid modernization & energ
Slide 19: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Nature-based Solutions Green Fleets Pumped Hydro Justice40 Photo credit: Origin Energy Tyndall Air Force Base, FL: Jacobs is partnering with New York City Metropolitan Transportation Authority: Origin Energy, Au
Slide 20: Environmental, Social & Governance Summary
▪ Climate Action Plan 2022 Environmental, Social & Governance Summary ▪ FY21 ESG Disclosures ▪ PlanBeyond 2.0 A sustainable business model aligning purpose and vision with both growth and ▪ Climate Risk Assessment FY22 positive impact: ▪ Approved Science-Based Targets ▪ Fully integrates purpose with
Slide 21: Sector description
Sector description Markets Definitions Addresses global national governments’ focus on modernizing aging infrastructure and post-pandemic economic stimulus. As an example, over 80% of the $550B US Infrastructure Investment and Jobs Act is aligned with our Infrastructure markets (Water, Transportatio
Slide 22: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 26,631 26,631 28,006 27,790 28,090 27,862 27,862 Revenue 3,360 3,427 3,260 3
Slide 23: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 1 2021 2021 2022 2022 2022 2022 2022 Critical Mission Solutions Backlog 8,473 9,135 9,066 9,104 9,104 9,683 9,779 9,565 10,589 10,589 10,798 10,556 10,222 10,561 10,561 Revenu
Slide 24: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q2 Q3 Q4 FY $’s in thousands Q1 2022 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 26,540 101,024 26,237 26,383 25,301 24,53
Slide 25: Non GAAP financial measures
Non GAAP financial measures (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. (2) Includes (a) the removal of pass through revenues and costs for the People & Places Soluti
Slide 26: Non GAAP financial measures
Non GAAP financial measures (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation and acquisition related programs. (2) Includes (a) the removal of pass through revenues and costs for the People & Places Soluti
Slide 27: Non GAAP financial measures
Non GAAP financial measures (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, including $91.3 million pre-tax related to the final settlement of the Legacy CH2M
Slide 28: Non GAAP financial measures
Non GAAP financial measures (1) (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, impairment charges relating to our investment in AWE ML, along with pre-tax $2
Slide 29: Reconciliation of net earnings from continuing operations to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA 31
Slide 30: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 32
Slide 31: Reconciliation of Jacobs Revenue and EPS Detail
Reconciliation of Jacobs Revenue and EPS Detail 33
Slide 32: Selected financial data
Selected financial data Three Months Ended Twelve Months Ended September October 1, September October 1, (in thousands) 30, 2022 2021 % Change 30, 2022 2021 % Change Total Adjusted EBITDA Adjusted EBITDA $ 350,177 $ 310,102 12.9% $ 1,363,608 $ 1,243,700 Exchange rate effect 11,627 30,357 Constant cu
Slide 33: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics 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 o
Slide 34: 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