Slide 1: Fiscal 3rd Quarter Earnings Conference Call
Fiscal 3rd Quarter Earnings Conference Call August 5, 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 Business Review ▪ Progressing our Culture ▪ Driving Innovation ▪ Q3 FY19 Highlights ▪ Line of Business Review ▪ Financials Review ▪ Q3 FY19 Results ▪ M&A Cost and Synergy Update ▪ Balance Sheet ▪ Cash Flow Outlook and Summary Jacobs and members of the In-Space Manufacturing team at NA
Slide 4: Executing Against our Strategy
Global Network of Expertise Executing Against our Strategy Transformed Portfolio Positioned for Sustained Growth ▪ Major multi-decade secular growth trends underpin long-term growth ▪ Deep technical expertise, global scale and execution discipline a differentiator life science space intelligence ▪ R
Slide 5: Be the Employer of Choice
Be the Employer of Choice Attract, retain and develop the world’s best talent • Inspirational leadership and clarity of strategy • Employee empowerment through inclusion and diversity • Innovative and entrepreneurial opportunities INNOVATION • PlanBeyond℠ sustainability strategy Our Connective Found
Slide 6: Investing in Solutions for Critical Global Challenges and Opportunities
Investing in Solutions for Critical Global Challenges and Opportunities Solutions enabled by digital capability, informed by domain expertise Applied Predictive Geospatial Science Analytics Automated Internet Cybersecurity Design of Things Jacobs’ Domain Expertise and Delivery Experience Investigati
Slide 7: KeyW Update: A Compelling Strategic Fit
KeyW Update: A Compelling Strategic Fit Accelerating Growth Leadership in High-Growth, ✓ Confidential space intelligence contract on track and well funded High-Margin Multi-Billion $ Space-Intelligence Sector ✓ Space intelligence pipeline robust with focus on lower-cost, low-earth orbit satellites F
Slide 8: Aerospace, Technology and Nuclear (ATN)
Aerospace, Technology and Nuclear (ATN) Unique Delivery Model Driving Share Gains ATN TTM Snapshot TTM Revenue by Customer (including KeyW) (including KeyW) ▪ One of the largest diversified government services providers ▪ Leveraging strong technical expertise, localized delivery model and U.S./Inter
Slide 9: Buildings, Infrastructure and Advanced Facilities (BIAF)
Buildings, Infrastructure and Advanced Facilities (BIAF) BIAF Snapshot YTD Gross Revenue by Sector Aligned To Secular Growth Trends ▪ Urbanization driving global infrastructure investments U.S./International 66% / 34% 19% 28% ▪ Sustainability and resiliency – numerous multi-decade opportunities Publ
Slide 10: Fiscal Q3 2019 Results
Fiscal Q3 2019 Results Strong Year-Over-Year Top-line Growth Revenue increased 8% y/y and Organic Net Revenue increased 11% y/y1 GAAP Operating Profit of $90M and Operating Profit Margin of 2.8% Adj. Operating Profit (OP) of $233M and Net Adj. OP Margin of 8.8% GAAP Net Earnings of $90 million and E
Slide 11: Segment Financials
Segment Financials Adjusted Operating Profit Margin On Track to Achieve 2021 Targets $’s in millions Comparable Basis Q3 Q3 YTD PF YTD 20182 2019 20182 2019 ATN Operating Profit 72 76 187 222 as a % of revenue 7.1% 6.6% 6.7% 6.8% BIAF Operating Profit 178 183 462 515 as a % of net revenue 13.4% 12.4
Slide 12: M&A and Divestiture Update
M&A and Divestiture Update M&A Cost Synergies On Track Surpassed Original CH2M Cost Synergy Estimates ▪ Expect to achieve 100% of increased $175M targeted savings by end of CY19 ▪ Total costs to achieve synergies remain approximately $265M ECR Update ▪ Now expect over $200M of ECR related transactio
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Pro Forma Financial Flexibility Strong Underlying Free Cash Flow Generation ▪ Underlying Q3 free cash flow again improved, increased from higher Q2 levels ▪ Q3 DSOs improve by approximately 2 days from Q2 Reported Net Debt Pro Forma Net Debt FY19 Q3 FY19 Q31 ▪ Expect to p
Slide 14: Delivering Superior Shareholder Value
Delivering Superior Shareholder Value ▪ Inspiring employees through a high- performance culture reflecting FY19 Financial Outlook accountability, inclusion and diversity Increasing FY19 adj. EPS1 ▪ Capturing growth opportunities through to $4.75 - $5.00 from $4.45 - $4.85, innovation in sustainable
Slide 15: Thank you!
Thank you! © Copyright Jacobs www.jacobs.com | worldwide
Slide 16: Jacobs: Delivering Innovative Solutions & Disciplined Execution
Jacobs: Delivering Innovative Solutions & Disciplined Execution U.S./Int’l Mix Talent Base Reimbursable Public/Private Q3 FY19 ($ in billions) 74%/26% ~52,000 and Lower Risk Sector Gross Backlog Net Revenue Fixed Price 65%/35% Services ATN ATN ~94% Metrics pro forma for KeyW $8.5 $1.2 $1.5 $14.0 BIA
Slide 17: Recast Segment Financials
Recast Segment Financials $’s in millions PF Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 ATN Backlog 6,641 7,174 7,147 7,130 7,130 7,158 7,285 8,456 Revenue 842 924 1,022 1,069 3,856 1,035 1,060 1,156 Operating Profit 57 581 72 77 2641 72 74 76 as a % of revenue 6.8% 6.2% 7.1% 7.
Slide 18: Recast Consolidated Financials
Recast Consolidated Financials $’s in millions PF Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,467 Revenue 2,746 2,870 2,934 2,992 11,541 3,084 3,092 3,170 Net Revenue 2,059 2,262 2,350 2,341 9,012 2,410 2,459 2,636 Adjus
Slide 19: Other Operational Metrics from Continuing Operations
Other Operational Metrics from Continuing Operations $’s in millions Q1 2018 Q2 2018 Q3 2018 Q1 2019 Q2 2019 Q3 2019 Depreciation (pre-tax) 18,476 26,764 24,423 18,211 23,491 25,851 Amortization of Intangibles 11,547 18,205 19,299 18,671 18,678 18,383 (pre-tax) Pass-Through Costs 411,787 608,720 583
Slide 20: Non GAAP Financial Measures
Non 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 the
Slide 21: Non GAAP Financial Measures
Non 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 the
Slide 22: Reconciliation of Net Earnings from Continuing Operations to Adjusted EBITDA
Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA Three months ended June 28, 2019 Adjusted Operating Profit from Continuing Operations (1) 232,813 Depreciation expense 25,851 Adjusted EBITDA $ 258,664 (1) See prior slides for reconciliation. 22
Slide 23: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) Adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted operating profit and adjusted operating profit margin are non-GAAP financial measures that are calculated by (i) excluding the costs related to the 2015 restructur