Slide 1: Fiscal Year 2017 – 1st Quarter Earnings Conference Call
Fiscal Year 2017 – 1st Quarter Earnings Conference Call February 8, 2016 www.jacobs.com | worldwide
Slide 2: Forward-Looking Statement Disclaimer; Non-GAAP Financial Measures
Forward-Looking Statement Disclaimer Statements included in this presentation that are not based on historical fact are forward‐looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial and economic data,
Slide 3: Agenda
Agenda • Business Review • Financials Review • Summary & FY17 Outlook 3
Slide 4: Jacobs Board of Directors
Jacobs Board of Directors New Appointee Robert McNamara Recent Retirees 4
Slide 5: FY17Q1 Highlights
FY17Q1 Highlights Nearing Completion of Successful Restructuring; Pivoting to Growth • Backlog of $18.1B; Professional Services up $217M • Strong First Quarter Sales Bookings • Gross Margin of 16.4% vs. 15.5% Year Ago • SG&A Cost Down 13% vs Last Year • Stabilizing EPS vs. Year Ago • Continued Stron
Slide 6: Backlog
Backlog Higher-Value Professional Services Growth Trend Continues Field Services Backlog ($ Billion) Professional Services Backlog ($ Billion) 5.1 5.2 18.2 18.2 18.3 18.8 18.1 2.5 6.8 6.9 6.4 6.7 5.9 5.4 11.9 12.0 12.2 11.4 11.4 Aerospace & Technology Buildings & Infrastructure Industrial Petroleum
Slide 7: Aerospace & Technology
Aerospace & Technology Strong Operating Profit, With Record Pipeline of New Opportunities Emerging • Steady Growth Markets – Focus shifting to significant new-business pipeline – Portfolio shift to higher margin mix continues – ION software investment bolsters Jacobs Connected Enterprise – Position
Slide 8: Buildings & Infrastructure
Buildings & Infrastructure Growing Pipeline of Opportunities Driving Backlog Growth • Buildings – Momentum Building – Continued success with federal clients in the US and Australia – Opportunities in global framework agreements for corporate buildings – Mission Critical remains high priority growth
Slide 9: Industrial
Industrial Increasing Opportunities Across Industrial Markets • Life Sciences – Strong – Market remains strong, specifically European biotech – Backlog impacted by project cancellation • Consumer Goods and Manufacturing – Steady – Favorable outlook in organic, health, and wellness – Upward trend in
Slide 10: Petroleum & Chemicals
Petroleum & Chemicals Continued Positive Trend in Chemical Awards • Oil & Gas – Early Indications of Potential Recovery – OPEC deal impacting crude pricing – Optimism for midstream post US election – Investment continues on maintenance and sustaining capital programs • Refining – Steady – Independen
Slide 11: FY17Q1 Financial Metrics
FY17Q1 Financial Metrics Key Financial Metrics Continue to Benefit From Greater Discipline • Revenue of $2.6B; GAAP EPS of $0.50 (Adj. $0.681) • Backlog at $18.1B; Book-to-Bill for TTM of 0.99 • Gross Margin up 90 bps vs. FY16Q1, flat vs. FY16Q4 • SG&A Down $50M (Adj. Down $14M1) vs. FY16Q1 • Operat
Slide 12: FY17Q1 Lines of Business Segment Financials
FY17Q1 Lines of Business Segment Financials Operating Profit vs. FY16Q1 OP Margin vs. FY16Q1 Line of Business FY17Q1 FY17Q1 Aerospace & Tech. $51.1M +6.4% 8.8% (+170 bps) Buildings & Infra. $38.8M -4.1% 6.7% (-50 bps) Industrial $25.1M -8.1% 3.3% (-70 bps) Petroleum & Chem. $23.7M -25.2% 3.7% (+30 b
Slide 13: Portfolio Continues to Evolve in Alignment With Strategy
Portfolio Continues to Evolve in Alignment With Strategy Segment Operating Profit (TTM)1,2 14% 21% 36% 33% +9 ppts 24% 30% 22% 20% 13 FY16Q1 FY17Q1 (1) Numbers rounded to equal 100% percent; (2) Excludes non-allocated corporate expenses and restructuring costs
Slide 14: Restructuring & Investments
Restructuring & Investments Strategic Investments to Enhance Our Capabilities • 2015 Formal Restructuring Program – Final savings estimate of $260-$270M – Final cost estimate of $390-$400M – Final cash costs/savings are $225M/$235M • Previously Announced FY17 Strategic Investments of $30M – Focused
Slide 15: Capital Allocation
Capital Allocation Balanced Use of Cash to Support Growth & Enhance Shareholder Value • $500M Share Buy-Back Authorization Over 3 Years – Repurchased 3.4M shares in FY16 ($153M) – Repurchased 600K shares in FY17Q1 ($30M) – Continued measured approach to remaining $317M • Board Approval to Implement
Slide 16: Summary
Summary Our Transformation is Underway • Continued Stable FY17 Outlook Projected – Stronger underlying operational performance – No change to adj. EPS guidance • Margin & Cash Flow Improvements Continue • One-time Strategic Investments Continue in Q2 • Pivot to Growth Building Optimism for 2018+ Mom
Slide 17: Thank You!
Thank You! © Copyright Jacobs November 22, 2016 www.jacobs.com | worldwide
Slide 18: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following table reconciles, for Q1FY17, the non-GAAP financial measures of adjusted EPS, adjusted selling general & administrative (“G&A”) expenses and adjusted operating profit to the most directly comparable U.S. GAAP financial measures of net earnings attributab
Slide 19: Non-US GAAP Financial Measures (cont’d)
Non-US GAAP Financial Measures (cont’d) • Adjusted earnings and adjusted EPS are non-GAAP financial measures that are calculated by excluding the after-tax costs related to certain restructuring activities that began in fiscal year 2015 (the “2015 Restructuring”), which are not considered by managem