Slide 1: Fiscal Third Quarter 2021 Earnings Conference Call
Fiscal Third Quarter 2021 Earnings Conference Call August 3, 2021
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 To supplement the financial results presented in accordance with generally of the Securities Act
Slide 3: Today's agenda
Today’s agenda Overview ▪ Strategy and performance update ▪ ESG thought leadership and solutions Lines of business review ▪ Critical Mission Solutions ▪ People & Places Solutions ▪ PA Consulting Financial review ▪ Q3 Fiscal 2021 results ▪ Focus 2023 ▪ Balance sheet and cash flow Outlook & Summary 3
Slide 4: Jacobs: Challenging today. Reinventing tomorrow.
Jacobs: Challenging today. Reinventing tomorrow. Compelling investment thesis with strong track record of execution ▪ Global infrastructure modernization, advanced facilities and national security ▪ ESG solutions embedded throughout global offerings ▪ Effectively deploying capital to maximize long-t
Slide 5: Reimagined Perspectives
Reimagined Perspectives Digital thought leadership publication – with a difference ▪ Challenge us to think differently about the future ▪ Stimulate discussion with thought-provoking insights Inaugural issue on Resilience ▪ Universal theme: adapting to and preparing for change ▪ Explores elements of
Slide 6: Global energy transition opportunities accelerating
Global energy transition opportunities accelerating USA USA UK France Germany Malaysia Australia Carbon Microgrid Power Airport Infrastructure Fusion Energy Solar Photovoltaic HVDC Neutral Facilities for Transportation for Hydrogen Aircraft Power Plant Campus Power Plant Interconnector Consulting se
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including The Buffalo Group) Base of recurring revenue; margin-accretive new business pipeline ▪ Multi-year enterprise contracts provide long-term stability U.S. / International 83% / 17% Government ~89% ▪ High-value solutions and e
Slide 8: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q3 2021) Executing against high-value opportunities U.S. / International 61% / 39% ▪ Deep domain expertise at scale across sectors Public / Private Sector 59% / 41% ▪ Global delivery model benefiting profitability and talent u
Slide 9: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q3 2021) Deep strategic expertise vital during and post pandemic ▪ Trusted partner for UK government’s COVID response U.S. / UK / Other 11% / 77% / 12% Public / Private Sector 50% / 50% ▪ Post-COVID growth projects re-emerging in Consumer and Life Scienc
Slide 10: Fiscal 2021 Q3 results
Fiscal 2021 Q3 results Revenue increased 10% y/y and Net Revenue up 11% y/y Telecom Resilience GAAP Operating Profit (OP) of $264M and OP Margin of 7.4% There’s been lots of excitement around 5G and the possibilities it Adj. OP of $315M (+32%) and Net Revenue Adj. OP Margin of 10.6% (+170 bps) offer
Slide 11: Segment financials
Segment financials $’s in millions Q3 2020 Q3 2021 Y/Y Cities & Infrastructure Critical Mission Solutions Operating Profit 90 108 21% Climate change has been called the as a % of revenue 7.4% 8.9% 150 bps existential threat of our time. People & Places Solutions Operating Profit 190 205 8% as a % of
Slide 12: Balance sheet and cash flow
Balance sheet and cash flow Q3 Leverage Metrics Continued strong cash flow generation for Q3 2021 ▪ Q3 cash flow from operations (CFFO) $173M and FCF1 of $153M $ billions FY21 Q3 ▪ Q3 FCF includes $261M of PA Consulting price consideration and ~$19M of Q3 Net Debt Position $2.2B cash outflows relate
Slide 13: Outlook & Summary
Outlook & Summary Increasing FY21 Outlook Resilience & ▪ Increasing adjusted EBITDA outlook to $1,210 to $1,275M from $1,200 to $1,270M Sustainability ▪ Increasing adjusted EPS outlook to $6.15 to $6.35 from $6.00 to $6.30 What do you think of when you ▪ Increasing expected adjusted EPS accretion fr
Slide 14: We do things right. We challenge the accepted. We aim higher.
We do things right. We challenge the accepted. We aim higher. We live inclusion. 14
Slide 15: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Hydrogen Aircraft Climate Risk Assessment Energy Transition Habitat Restoration Airport Infrastructure for Hydrogen Aircraft, PSA International, Worldwide: standard guidance Shell Energy and Chemicals Park and C
Slide 16: Environmental, Social and Governance (ESG) summary
Environmental, Social and Governance (ESG) summary A sustainable business model aligning purpose and vision with both growth and positive impact ▪ Fully integrating purpose with profit and operationalizing sustainability across all aspects of our business ▪ Drives how we can have the biggest positiv
Slide 17: Selected financial data
Selected financial data $’s in millions Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 Revenue 3,360 3,427 3,260 3,520 13,567 3,382 3,548 3,576 Net Revenue 2,658 2,786 2,681 2,832 10,957 2,733 2,971 2,964 Adjusted Gross
Slide 18: Selected financial data
Selected financial data $’s in millions Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 20211 Q3 2021 Critical Mission Solutions Backlog 8,473 9,135 9,066 9,104 9,104 9,683 9,779 9,565 Revenue 1,182 1,243 1,211 1,329 4,966 1,295 1,310 1,218 Operating Profit as a % of revenue 90 84 90 108 372 110
Slide 19: Other operational metrics from continuing operations
Other operational metrics from continuing operations $’s in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 (pre-tax) Amortization of Intangibles 21,845 22,094 23,135 23,489 90,563 23,155 30,598 49,555 (pr
Slide 20: 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 and acquisition related programs. Also includes $(57.3) million or $(0.44) per share in EPS numerator adjustments relating to th
Slide 21: Non GAAP financial measures
Non GAAP financial measures (1) Includes (a) the removal of pass through revenues and costs for the People & Places Solutions line of business for the calculation of operating profit margin as a percentage of net revenue of $578.7 million, (b) the removal of amortization of intangible assets of $23.
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 22
Slide 23: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 23
Slide 24: Non-GAAP financial measures (cont'd)
Non-GAAP financial measures (cont’d) 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 operations, adjusted