Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Goldman Sachs Industrials & Materials Conference 2022
30 slides from Jacobs Solutions's conference presentation, May 12, 2022
Slide 1: Jacobs Investor Presentation
Jacobs Investor Presentation May 2022 ©Jacobs 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures 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
Slide 3: Our foundation is strong
Our foundation is strong Purpose To create a more connected, sustainable world. Values We do things right. We challenge the accepted. We aim higher. We live inclusion. Employee Value Jacobs. A world where you can. Statement Where you Where you Where you can be you. can do. can grow. 3 ©Jacobs 2021
Slide 4: Jacobs – Company Overview
Jacobs – Company Overview Fiscal 2021 By Sector1 By Region By Mix Advanced Manufacturing APAC Other Reimbursable UK & 7% 4% Solutions Solutions 76% Cities & Places Europe 24% 8% Infrastructure 23% Space 32% 11% Health & Life Sciences ▪ Jacobs provides a full spectrum of professional 11% Energy & ser
Slide 5: Jacobs Fiscal 2021 Segment Summary
Jacobs Fiscal 2021 Segment Summary Critical Mission People & Places PA Consulting Solutions Solutions Investment1 Gross revenue $8,378 million Revenue (% of Total) $5,087 million ($1,028M Pro Forma)1 Net revenue $5,996 million US / International 82% / 18% 61% / 39% 13% / 87% (~78% UK) Public / Priva
Slide 6: Jacobs deep domain knowledge across diverse markets
Jacobs deep domain knowledge across diverse markets Intel Penn Station Access, Metropolitan Leverage digital replication to design and program Jacobs portfolio by market1 Transportation Authority: manage increased semiconductor manufacturing capacity (approx. from FY’21 Gross Revenue) Prime designer
Slide 7: $6B in ESG and Climate Response revenue across all markets
$6B in ESG and Climate Response revenue across all markets Approximate FY’21 ESG revenue by market ITER Fusion Project Green Fleets World’s largest fusion energy experiment: Brisbane Metro Bus Rapid Transit (BRT), Australia: designing and delivering the First Plasma technical advisor for fleet of ne
Slide 8: IIJA to drive significant multi-year growth
IIJA to drive significant multi-year growth Jacobs’ market alignment with IIJA spend Spend in $B Advanced M'facturing FY21 Current baseline IIJA 2% Other/Not Aligned (over 5 years) (above-baseline 4% increase) Airports 5% Highways and bridges 47.0 236.0 304.0 +29% Highways & Telecom Bridges Mass tra
Slide 9: 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 81% / 19% ▪ Multi-year enterprise contracts provide long-term stability Government ~87% ▪ High-value solutions and ef
Slide 10: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q2 2022) Deep Domain Expertise + Data-Driven Solutions + Global Scale ▪ Client-recognized impact of expertise at scale driving differentiated solutions U.S. / International 60% / 40% ▪ Global delivery model benefiting capacity
Slide 11: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q2 2022) Unique combination of outcome-driven strategic and digital consulting UK / US / Other 78% /12% / 10% ▪ End-to-end innovation by combining strategists, scientists and digital experts Public / Private Sector 46% / 54% ▪ Deep industry expertise acr
Slide 12: Fiscal 2022 Q2 results
Fiscal 2022 Q2 results Revenue up 8% y/y and Pro Forma Net Revenue up 4% y/y GAAP Operating Profit (OP) of $166M and OP Margin of 4.3% Adj. OP of $332M (+7%) and Net Revenue Adj. OP Margin of 10.1% GAAP Net Earnings from Continuing Operations of $89M Climate Response GAAP EPS from Continuing Operati
Slide 13: Segment financials
Segment financials $’s in millions Q2 2021 Q2 2022 Y/Y Critical Mission Solutions Operating Profit 114 113 -1% as a % of revenue 8.7% 8.3% (40) bps People & Places Solutions Operating Profit 202 191 -5% as a % of net revenue 12.9% 11.9% (105) bps Boldly Moving Forward PA Consulting Operating Profit
Slide 14: Balance sheet and cash flow
Balance sheet and cash flow Continued strong cash flow generation ▪ Q2 cash flow from operations (CFFO) $125M and FCF1 of $96M; includes net one-time cash benefits of $40M related to FX hedge offset by cash restructuring and other items ▪ Quarterly DSO up ~3 days compared to Q2 FY21 ▪ On track to ac
Slide 15: Outlook & Summary
Outlook & Summary Updating Fiscal 2022 Outlook; reiterating mid-point of guidance ▪ Updating adjusted EBITDA outlook to $1,385 to $1,435M from $1,370 to $1,450M and adjusted EPS outlook of $6.95 to $7.35 from $6.85 to $7.45 Affirming financial targets communicated during March 2022 strategy update F
Slide 16: FY22 to FY24 Organic Financial Targets
FY22 to FY24 Organic Financial Targets Critical Mission People & PA Consulting Jacobs Solutions Places Net Revenue Growth 6% to 9% 6% to 9% 12% to 15% 7% to 10% (CAGR) Adj. Operating Profit +25 – 100 bps +100 – 150 bps +/- Flat +60 to 100 bps Margin Adj. Operating Profit 10%+ 10%+ 12% to 15% Double-
Slide 17: 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 55,000 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 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 & e
Slide 19: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Water Security Offshore Wind Climate Adaptation PFAS Investigations Delta Conveyance Design and Construction Empire Offshore Wind, South Brooklyn Marine Pacific Gas and Electric, Electric Undergrounding Australi
Slide 20: Environmental, Social & Governance Summary
▪ Climate Action Plan 2022 Environmental, Social & Governance Summary ▪ FY21 ESG Disclosures ▪ PlanBeyond 2.0 ▪ Climate Risk Assessment FY21 A sustainable business model aligning purpose and vision with ▪ Approved Science-Based Targets both growth and positive impact: ▪ 2021 CDP Submission ▪ Fully i
Slide 21: Revenue by Sector
Revenue by Sector Approximate % Markets P&PS CMS of Jacobs FY21 Revenue ▪ Water ▪ Telecom Infrastructure 32% ▪ Transportation ▪ Defense National Security ▪ Intelligence 16% ▪ Cyber ▪ Electronics & Data Centers ▪ Automotive Advanced Manufacturing 4% ▪ Specialized Manufacturing ▪ Health Health & Life
Slide 22: 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 23: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 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 Revenue 3,360 3,427 3,260 3,520 13,567 3,382 3,548 3,576 3,586 14,093 3,
Slide 24: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions 2020 2020 2020 2020 2020 2021 20211 2021 2021 2021 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 Revenue 1,182 1,243 1,211 1,329 4,966 1,295 1,310 1,
Slide 25: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 $’s in thousands FY 2020 Q1 2021 FY 2021 2020 2020 2020 2020 2021 2021 2021 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 (pre-tax) Amortization of 21,845 22,
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 initiatives and acquisition related programs, including $91.3 million related to the final pre- tax settlement of the Legacy CH2
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, along with after-tax $292.0 million in one time PA Consulting transaction- related
Slide 28: Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA (1) Six months ended April 2, 2021 have been adjusted to exclude one-time PA Consulting deal related finance costs of $4.0 million. 28 ©Jacobs 2022
Slide 29: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 29 ©Jacobs 2022
Slide 30: 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
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