Slide 1: Fiscal 1st Quarter Earnings Conference Call
Fiscal 1st Quarter Earnings Conference Call February 6, 2019 1
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
Slide 3: Today's Agenda
Today’s Agenda ▪ Financial Reporting Changes ▪ Business Review – PlanBeyondSM Sustainability Strategy – Review FY19 Q1 Highlights – Line of Business Review ▪ Financials Review – FY19 Q1 Results – Balance Sheet – Capital Allocation ▪ Outlook and Summary 3 Australian Education City Master Plan, Melbou
Slide 4: Financial Reporting Changes
Financial Reporting Changes Financial Metric Current Changes in Fiscal Q1 2019 Result Document Segment Reporting1 Global Environmental Services backlog of approximately $1.5 billion, revenue of $230 million and See appendix slides operating profit of $20 million moves from Aerospace, Technology and
Slide 5: PlanBeyond: Driving to the Triple Bottom Line
PlanBeyond℠: Driving to the Triple Bottom Line People Places Partnership Being the employer Creating sustainable Enabling change through of choice places to live and work smart solutions • Improving our health • Optimizing our • Leading through & wellbeing footprint innovation • Maximizing diverse •
Slide 6: Executing Against Our Strategy
Executing Against Our Strategy Solid Start to Fiscal Year 2019 ▪ Pro forma revenue growth of 12% year-over-year1 life science space exploration ▪ Adjusted EPS of $1.14 above the mid-point of our guidance Positioned for Accelerated Profitable Growth ▪ Cost structure improved through a continued focus
Slide 7: New Jacobs: Global, Data-Driven Solutions Provider
New Jacobs: Global, Data-Driven Solutions Provider FY19 Q1 excluding ECR FY19 Q1 ($ in billions) Revenue Backlog U.S./Int’l Mix Talent Base Reimbursable Public/Private 71%/29% ~50,000 and Low Risk Sector ATN ATN Fixed Price 63%/37% $1.0 $7.2 Services ~94% $2.1 $13.2 BIAF BIAF Increasing portfolio mi
Slide 8: Aerospace, Technology and Nuclear
Aerospace, Technology and Nuclear ATN Focus on High Priority Federal Programs ATN Snapshot TTM Revenue by Customer ▪ Business resiliency built on long-term enterprise contracts ▪ Robust government services pipeline U.S./International 87% / 13% 9% Unique Delivery Model Driving Share Gains Government
Slide 9: Buildings, Infrastructure and Advanced Facilities
Buildings, Infrastructure and Advanced Facilities BIAF BIAF Snapshot TTM Revenue by Sector Aligned To Secular Growth Trends 11% ▪ Sustainability and resiliency present a multi-decade opportunity U.S./International 66% / 34% 20% ▪ Favorable Electronics and Life Sciences CAPEX environment Public / Pri
Slide 10: Impact of ECR Related Costs On Continuing Operations
Impact of ECR Related Costs On Continuing Operations 250 Excess corporate ECR costs in overhead to be reduced 200 operating profit from through restructuring continuing operations that will go to Worley 150 Parsons or be eliminated at close 100 50 0 Operating Profit From Continuing Operating Profit
Slide 11: Fiscal 2019 Q1 Results
Fiscal 2019 Q1 Results Double-Digit Pro-Forma Revenue Growth Pro Forma revenue increased 12% y/y (excluding ECR) Gross Margin of 18.5% (excluding ECR) Operating Profit Margin up at least 75 bps versus year ago GAAP EPS of $0.86 – impacted by: ▪ $0.25 of CH2M restructuring, other integration-related
Slide 12: Segment Financials
Segment Financials ECR Costs Not Included In Discontinued Operations Impact Reported Profits $’s in millions Includes stub Comparable Basis CH2M period Q1 2018 Q1 20182 Q1 2019 (reported) (pro forma) ((reported)d) ATN Operating Profit 61.1 57.0 72.2 as a % of revenue 8.6% 6.8% 7.0% BIAF Operating Pr
Slide 13: CH2M Synergies and ECR Separation
CH2M Synergies and ECR CH2M Cost Synergies Remain Above Expectations Separation Q1 Net Synergies To Date of Above $120M ex ECR ▪ ~90% of targeted $175 M run-rate savings at end of Q1 Continue to Expect Net Cost Synergies of $175M after ECR sale ▪ Excluding ECR, expect to approach $175M in run rate s
Slide 14: Balance Sheet
Balance Sheet ECR Sale to Improve Pro Forma Financial Flexibility Maintained Healthy Balance Sheet ▪ Q1 cash and equivalents of $0.9B and gross debt of $2.7B Reported Net Debt Net Cash ▪ Ending Q1 with $0.9B of liquidity capacity remaining on revolver FY19 Q1 FY19 Q11 $1.0 ▪ Repurchased 3.4 million
Slide 15: Disciplined, Value-Driven Capital Allocation
Disciplined, Value-Driven Capital Allocation Track record of Accelerate organic and external growth solid returns for ▪ Strong organic growth opportunities in core business shareholders ▪ Pipeline of strategic M&A opportunities ▪ Targeted M&A using rigorous evaluation ▪ Strong M&A execution and retu
Slide 16: Delivering Superior Shareholder Value
Delivering Superior Shareholder Value ▪ Inspiring employees through a high FY19 Financial Outlook performance culture reflecting accountability, inclusion and diversity Increasing FY19 adj. EPS1 ▪ Aggressively capturing growth opportunities to $5.10 - $5.50 from $5.00 - $5.40, assuming full-year ECR
Slide 17: Save the date
Save the date Investor Day Feb. 19, 2019 in Miami, FL • 12:30-5:00 pm – Corporate Strategy Presentation • 5:00-6:00 pm – Reception with Executive Management 1 Hotels | www.1hotels.com 17
Slide 18: Thank you!
Thank you! © Copyright Jacobs www.jacobs.com | worldwide
Slide 19: Recast Jacobs Consolidated Financials (Preliminary)
Recast Jacobs Consolidated Financials (Preliminary) $’s in millions Q1 2018 1, 2 Q2 2018 1 Q3 2018 1 Q4 2018 1 (pro forma) (pro forma) (pro forma) (pro forma) Revenue 2,746 2,871 2,933 2,992 Direct Costs (2,201) (2,286) (2,341) (2,398) Gross Profit 545 585 592 594 SG&A (425) (434) (394) (377) Adjust
Slide 20: Recast Segment Financials (Preliminary)
Recast Segment Financials (Preliminary) Includes CH2M Comparable Basis stub period $’s in millions Q1 2018 Q1 20182 Q2 2018 Q3 2018 Q4 2018 Q1 2019 (reported) (pro forma) (pro forma) (pro forma) (pro forma) ((reported)d) ATN Backlog 6,642 6,642 7,174 7,148 7.130 7,158 ATN Revenue 711 842 924 1,021 1
Slide 21: Impact From Accounting Changes and ECR Sale
Impact From Accounting Changes and ECR Sale Impacted Line Item Description ATN and BIAF Backlog CH2M backlog alignment and GES moving from ATN into BIAF line of business1 ATN and BIAF Revenue GES moving from ATN into BIAF line of business and ASC 606 revenue recognition adoption Total Revenue ASC 60
Slide 22: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following tables reconcile the U.S. GAAP values of net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For the comparable periods presented below, such adjustments consist of amounts incurred in connection with t
Slide 23: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) Adjusted net earnings, adjusted EPS and adjusted operating profit margin are non-GAAP financial measures that are calculated by (i) excluding the costs related to the 2015 restructuring activities, which included involuntary terminations, the abandonment of certa