Slide 1: FY18 Earnings & Investor Briefing
FY18 Earnings & Investor Briefing September 25th 2018
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward Looking Statements: These presentations contain forward-looking statements, including those regarding our anticipated financial results for our fourth quarter and full fiscal year 2018; our guidance for future financial performance in our first quarter of fiscal ye
Slide 3: Agenda
Agenda 8:30 AM Adam Berry, IR Opening Remarks 8:35 AM Michael Dastoor, CFO Q4 & FY18 Review 8:45 AM Mark Mondello, CEO Jabil Update 9:30 AM Michael Dastoor, CFO FY19 Financial Details 10:00 AM Q&A
Slide 4: Fourth Quarter 2018 Earnings and First Quarter 2019 Guidance
Fourth Quarter 2018 Earnings and First Quarter 2019 Guidance September 25th 2018
Slide 5: Fourth Quarter and Fiscal Year 2018 Income Highlights
FOURTH QUARTER AND FISCAL YEAR 2018 INCOME HIGHLIGHTS Three months ended Fiscal year ended August 31, August 31, (In millions, except for per share data) 2018 2017 2018 2017 Net revenue $5,772 $5,023 $22,095 $19,063 U.S. GAAP operating income $154 $118 $542 $410 U.S. GAAP net (loss) income ($57) $46
Slide 6: Fourth Quarter 2018 Segment Results
FOURTH QUARTER 2018 SEGMENT RESULTS § Diversified Manufacturing Services (DMS) § Net Revenue Increase of 11% § Core margin* (non-GAAP) of 2.7% DMS § Electronics Manufacturing Services (EMS) $5.8B 42% § Net Revenue Increase of 18% EMS Revenue § Core margin* (non-GAAP) of 4.4% 58% § Total Company EMS
Slide 7: First Quarter 2019 Guidance
FIRST QUARTER 2019 GUIDANCE Segment Revenue Guidance Q1 FY19E YoY Change § Diversified Manufacturing Services $2.85B Increase 5% § Electronics Manufacturing Services $3.25B Increase 13% Consolidated Guidance Q1 FY19 Net revenue $5.8B - $6.4B U.S. GAAP operating income $158M - $223M U.S. GAAP diluted
Slide 8: Investor Briefing
Investor Briefing Mark Mondello Chief Executive Officer September 25th 2018
Slide 9: Our People – Jabil's Most Valued Asset
OUR PEOPLE – JABIL’S MOST VALUED ASSET PUBLIC | ©Jabil Inc. 2018. All Rights Reserved. 9
Slide 10: What We're Doing Is Working
WHAT WE’RE DOING IS WORKING “ ISN’T IT FUNNY HOW DAY-BY-DAY NOTHING CHANGES, BUT WHEN YOU LOOK BACK SO MUCH IS DIFFERENT? ” - C.S. LEWIS 10 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved.
Slide 11: Jabil FY18 Results
JABIL FY18 RESULTS $ 22Billion NET REVENUE $ 2.62 CORE EPS 3.5% CORE OPERATING MARGIN $250Million FREE CASH FLOW $1.5Billion CORE EBITDA 19% CORE ROIC FY18 11 RESULTS See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/
Slide 12: Jabil FY19 Guidance
JABIL FY19 GUIDANCE $ 24.5Billion NET REVENUE $ 3.00 CORE EPS 3.5% CORE OPERATING MARGIN $350Million FREE CASH FLOW $1.65Billion CORE EBITDA 20% CORE ROIC FY19 12 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ GUIDANCE
Slide 13: Jabil Navigational Beacon
JABIL NAVIGATIONAL BEACON $ 28Billion NET REVENUE $ 4.00 CORE EPS 4.0% CORE OPERATING MARGIN $600Million FREE CASH FLOW $2.0Billion CORE EBITDA 20% CORE ROIC Navigational 13 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ BEACON
Slide 14: Deliberate Actions for Continued Earnings Growth
DELIBERATE ACTIONS FOR CONTINUED EARNINGS GROWTH Core Core Core (In millions, except for per share data) Revenue Op Income Op Margin EPS FY18 (Results) $22,000 $770 3.5% $2.62 14 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved. See U.S. GAAP to non-GAAP definitions and reconciliations located at http
Slide 15: Deliberate Actions for Continued Earnings Growth
DELIBERATE ACTIONS FOR CONTINUED EARNINGS GROWTH Core Core Core (In millions, except for per share data) Revenue Op Income Op Margin EPS FY18 (Results) $22,000 $770 3.5% $2.62 FY19 (Guidance) $24,500 $850 3.5% $3.00 FY18 as the Baseline @ 2.5% growth $22,500 $830 3.7% New Business Awards $2,000 $20
Slide 16: Deliberate Actions for Continued Earnings Growth
DELIBERATE ACTIONS FOR CONTINUED EARNINGS GROWTH Core Core Core (In millions, except for per share data) Revenue Op Income Op Margin EPS FY18 (Results) $22,000 $770 3.5% $2.62 FY19 (Guidance) $24,500 $850 3.5% $3.00 FY18 as the Baseline @ 2.5% growth $22,500 $830 3.7% New Business Awards $2,000 $20
Slide 17: $2 Billion in New Business Awards
$2 BILLION IN NEW BUSINESS AWARDS HEALTHCARE CLOUD $300million $800million INVESTMENTS IN CAPABILITIES AND 5G / WIRELESS AUTOMOTIVE TECHNOLOGY DRIVING SELECT REVENUE GROWTH $300million $300million OTHER $300million 17 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved.
Slide 18: 3D / Additive Manufacturing
3D / ADDITIVE MANUFACTURING ADDITIVE MANUFACTURING 18 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved.
Slide 19: Diversification Underpins Our Deliberate Actions
DIVERSIFICATION UNDERPINS OUR DELIBERATE ACTIONS Core Income and Cash Flows by Product Set DI· VER· SI· FI· CA· TION : The act or policy of increasing the variety of products : The act of intentionally balancing different assets or asset classes 19 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved. See
Slide 20: Accelerating Healthcare Innovation
ACCELERATING HEALTHCARE INNOVATION Jabil and Johnson & Johnson Medical Devices Companies (JJMDC) have entered into a long- term strategic collaboration, significantly expanding on a 12 year partnership ** Expands our Elevates our Bolsters our Healthcare Portfolio Technical Capabilities Diversificati
Slide 21: What We're Doing Is Working
WHAT WE’RE DOING IS WORKING Revenue Core Op Income Core EPS (In billions) (In millions) $29.0 $27.0 +10% +10% CAGR +17% CAGR CAGR $25.0 $23.0 $21.0 $19.0 $24.5 $850 $3.00 $17.0 $768 $2.62 $22.1 $15.0 $19.1 $667 $2.11 $18.4 $630 $1.86 $13.0 $11.0 FY16 FY17 FY18 FY19E FY16 FY17 FY18 FY19E FY16 FY17 FY
Slide 22: Our Navigational Beacon
OUR NAVIGATIONAL BEACON $ 28Billion NET REVENUE $ 4.00 CORE EPS 4.0% CORE OPERATING MARGIN $600Million FREE CASH FLOW $2.0Billion CORE EBITDA 20% CORE ROIC Navigational 22 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ BEACON
Slide 23: FY19 Financial Details
FY19 Financial Details Michael Dastoor Chief Financial Officer September 25th 2018
Slide 24: Financial Priorities
FINANCIAL PRIORITIES Operating Earnings Per Free Cash Margin Share Flow 24 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved.
Slide 25: FY19 Diversification
FY19 DIVERSIFICATION DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING End-Market FY19E End-Market FY19E Mechanics $2.3B Automotive $1.5B Digital Print & Retail $2.0B Healthcare & Packaging $3.0B Industrial & Energy $2.4B Edge Devices & Accessories $3.9B 5G & Cloud $3.0B AR/VR/Lifestyle $1.0B Ente
Slide 26: $2 Billion in New Business Awards
$2 BILLION IN NEW BUSINESS AWARDS HEALTHCARE CLOUD $300 million $800million INVESTMENTS IN CAPABILITIES AND 5G / WIRELESS AUTOMOTIVE TECHNOLOGY DRIVING SELECT REVENUE GROWTH $300million $300million OTHER $300million 26 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved.
Slide 27: FY19 Cash Flow Generation & Capital Expenditures
FY19 CASH FLOW GENERATION & CAPITAL EXPENDITURES CASH FLOWS AND NET CAPEX ($ millions) Cash Flows Net Capex Solid Cash Flows & $934 $1,150 $800 Disciplined Capex $686 FY18 FY19E Net capex as a % 3% ~3% of net revenue Free Cash Flow $248 $350 27 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved. See U.S
Slide 28: Actively Driving Our Business to Grow ROIC
ACTIVELY DRIVING OUR BUSINESS TO GROW ROIC CORE RETURN ON INVESTED CAPITAL CONSISTENT RETURNS • Maximizing the efficiency of our sales cycle • Aligning investments with higher 20% growth and more profitable end- 19% markets 15% 15% • Disciplined approach towards optimal capital structure and investo
Slide 29: Jabil FY19
JABIL FY19 $ 24.5Billion NET REVENUE $ 3.00 CORE EPS 3.5% CORE OP MARGIN $350Million FREE CASH FLOW $1.65BillionCORE EBITDA 20% CORE ROIC 29 PUBLIC | ©Jabil Inc. 2018. All Rights Reserved. See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/
Slide 30: Q&A
Q&A