Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Jacobs — Merger or Acquisition (October 2018)

17 slides from Jacobs Solutions's merger presentation, Oct 22, 2018

  1. Slide 1: Accelerating Jacobs’ Transformation for Growth

    Accelerating Jacobs’ Transformation for Growth October 2018

  2. Slide 2: Forward-Looking Statement Disclaimer

    Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are i

  3. Slide 3: Accelerating Jacobs’ Transformation for Growth

    Accelerating Jacobs’ Transformation for Growth  $3.3B sale of ECR business to WorleyParsons – a compelling value  Reinforces focus on higher margin, higher growth, less cyclical business lines  Leverages enterprise capabilities to drive integrated solutions portfolio-wide  Increases financial fl

  4. Slide 4: Continuing to Deliver on Strategic Imperatives

    Continuing to Deliver on Strategic Imperatives Build a high Build culture of accountability, inspirational leadership and performance innovation that will lead to outperformance over the long term culture Transform Fundamentally change the way we operate to improve project the core delivery, sales e

  5. Slide 5: Building on Record of Strategic Execution and Value Creation

    Building on Record of Strategic Execution and Value Creation Focus on improved New line of business Profitable growth CH2M acquisition Exceeding CH2M cost business and workforce structure drives strategy launched accelerates growth synergies and overall efficiency accountability December 2016 in key

  6. Slide 6: Transaction Overview

    Transaction Overview  Sale to WorleyParsons of the entire ECR segment, as reported in most recent 10Q Asset  Includes petroleum, chemicals and mining  $3.3 B Enterprise Value Price  ~$2.6 B net proceeds at closing 1  Greater than 11.5x Enterprise Value / Adj. TTM EBITDA Valuation  Premium to r

  7. Slide 7: Jacobs: Global, Next-Generation Solutions Provider

    Jacobs: Global, Next-Generation Solutions Provider Aerospace, Technology, Environmental and Nuclear (ATEN) FY18 Q3 Pro Forma excluding ECR 42% U.S./Int’l Mix 70%/30% Talent Force ~50,000 Public/Private Sector 65%/35% FY18 Q3 58% Revenue Buildings, Infrastructure and Advanced Facilities Driving reven

  8. Slide 8: Buildings, Infrastructure and Advanced Facilities – BIAF

    Buildings, Infrastructure and Advanced Facilities – BIAF Strong Global Infrastructure Demand FY18 Q3 BIAF Snapshot FY18 Q3 Revenue by Sector  Population, aging infrastructure & urbanization driving growth  U.S., Middle East and Asia strong demand U.S./International 58% / 42% Public/Private Sector

  9. Slide 9: Aerospace, Technology, Environment and Nuclear – ATEN

    Aerospace, Technology, Environment and Nuclear – ATEN Q3 ATEN Snapshot Q3 Revenue by Sector Positioned for Strong Growth  Demand healthy in U.S. Federal and commercial markets U.S./International 86%/14%  Cross selling cyber and analytics solutions across Jacobs Government ~85% Reimbursable ~80% 

  10. Slide 10: One of the Largest Government Services Providers

    One of the Largest Government Services Providers CY2018E Revenue $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- Leidos GDIT Booz Allen SAIC + Jacobs CACI Perspecta Northrop ManTech BAE Cyber & Engility Tech Svs Intel Source: Bloomberg estimates and Jacobs company estimates 10

  11. Slide 11: Improved Profitability and Return Profile

    Improved Profitability and Return Profile Pro Forma Excluding ECR Revenue growth Accretive to long-term growth rates FY19E Adjusted EBITDA1 $0.92-$1.0 B FY18 Q3 Share Count 143M FY18 Q3 Net Cash2 + WorleyParsons Shares $1.2 B Gross margin Increase >150 bps FY18 Q3 ROIC >9% FY18 Q3 Tangible Net Worth

  12. Slide 12: Jacobs: Positioned for Enhanced Multiple

    Jacobs: Positioned for Enhanced Multiple Current Enterprise Value / 13.0x Infrastructure (58% of PF Jacobs) Next Twelve Months Adj. EBITDA1 Infra. Peers 11.0x 10.9x 11.8x Jacobs 10.9x 9.0x 9.1x 9.1x 7.0x 5.0x Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 15.0x Government Services (42% of PF Jacob

  13. Slide 13: Significant Financial Flexibility

    Significant Financial Flexibility  Short term plan to use ECR proceeds to repay term loan and revolver Reported Net Debt Pro Forma Net Cash FY18 Q3 FY18 Q31 $1.5 Pro Forma $1.1 $ Billions FY18 Q3 FY18 Q3 $1.0 $0.5 Gross Debt $2.3 $0.5 $0.0 Gross Debt/Adj. EBITDA 2.2x 0.6x ($0.5) ($1.0) Cash and Equ

  14. Slide 14: Disciplined, Value-Driven Capital Allocation

    Disciplined, Value-Driven Capital Allocation Accelerate organic and external growth  Strong organic growth opportunities in core business Track record of solid  Pipeline of strategic M&A opportunities returns for shareholders  Targeted M&A using rigorous evaluation  Strong M&A execution and retu

  15. Slide 15: Delivering Superior Shareholder Value

    Delivering Superior Shareholder Value  Inspiring employees through Longer-term a high performance culture reflecting financial outlook accountability, inclusion and diversity  Aggressively capturing growth Organic growth opportunities through innovation in complemented with M&A sustainable infrast

  16. Slide 16: Save the date

    Save the date Investor Day Feb. 19, 2019 in Miami, FL • 1-5 p.m. – Corporate Strategy Presentation • 5-6 p.m. – Reception with executive management 1 Hotels | www.1hotels.com 16

  17. Slide 17: Non-US GAAP Financial Measures

    Non-US GAAP Financial Measures Pro-forma adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the Energy, Chemicals and Resources (“ECR”) Non-GAAP Reconciliation Table TTM ended 6/29/2018 business is calculated by adding back ECR Segment Operating profit $ 205,965 d

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