Slide 1: Fiscal Year 2016 – 1st Quarter Earnings Conference Call
Fiscal Year 2016 – 1st Quarter Earnings Conference Call February 3rd, 2016 www.jacobs.com | worldwide
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer Statements included in this presentation that are not based on historical fact are forward‐looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial and economic data,
Slide 3: Outline
Outline • Business Review – Q1 Highlights – Business & End-markets Update • Financial Review – Key Financial Metrics – Restructuring & Capital Allocation • Next Steps – Sales Excellence – Project Delivery Excellence • Closing Comments 3
Slide 4: FY16Q1 Highlights
FY16Q1 Highlights * Strong Cost Control Mitigating Challenging Market Conditions • Beyond Zero – Safety Excellence • Revenues of $2.85 Billion • Backlog of $18.2 Billion, Down 3% From FY15Q4 • Significant G&A Cost Reduction, Down 13% From FY15Q1 • Improved Execution of Business Operations • EPS of $
Slide 5: Business Update: Positioning For Growth
Business Update Positioning For Growth • Successful Restructuring & Realignment • New Lines of Business (LOB) Set Foundation for Our Future • Priorities – Continued Cost Efficiency Efforts – Project Delivery – Winning Business – Leadership Accountability – Strategic Review • Strategy Development – P
Slide 6: Petroleum & Chemicals: Uncertain Market Outlook
Petroleum & Chemicals Uncertain Market Outlook Oil and Gas – Challenged • Significant Negative Impact on Capex from Falling Oil Price • Strong Position in Resilient Middle East Market • Focus on Sustaining Capital Projects Refining – Steady • Independent Refiners Increasing Market Share • Continued
Slide 7: Industrial: Life Sciences Driving Backlog
Industrial Life Sciences Driving Backlog Life Sciences – Robust • Notable Increases in PharmaBio Capex, Especially in Biologics • Industry Consolidation Creating Opportunities • Strong Project Pipeline Globally Specialty Chemicals & Manufacturing - Steady • Domestic Pulp & Paper Flat, but Growth Int
Slide 8: Buildings & Infrastructure: Growth Opportunities Globally
Buildings & Infrastructure Growth Opportunities Globally Buildings - Steady • Increase in U.S. and U.K. State/Local Public Buildings Activities • Strong Opportunities Globally in Healthcare, Airports and Education • Mission Critical Investments Remain Strong Infrastructure - Strong • Transportation
Slide 9: Aerospace & Technology: Growing Intelligence & Cyber Opportunities
Aerospace & Technology Growing Intelligence & Cyber Opportunities Building Momentum • $250M+ of Contracts Awarded in FY16Q1 Not Yet in Backlog • Stability of Government Funding with Near-Term Certainty • Strengthening Position in Military Range O&M Market • Continued Growth Opportunities in Intellig
Slide 10: Financial Review
Financial Review * JACOBS
Slide 11: Key Adjusted Financial Metrics
Key Adjusted Financial Strong Execution Metrics * in Tough Market Conditions • Revenues of $2.85 Billion • Gross Margin of $441 Million • G&A Reduced by $48 Million From FY15Q1 • Operating Profit of $128 Million • Backlog of $18.2 Billion • Book-to-Bill for Trailing Twelve of 0.92 • Balance Sheet –
Slide 12: Backlog Impacted by FX and Oil & Gas / Mining Headwinds
Backlog Backlog Impacted by FX and Oil & Gas / Mining Headwinds Professional Engineering Services Backlog ($ Billion) Field Services Backlog ($ Billion) FY16 - Q1 11.4 6.8 18.2 4.9 6.2 FY15 - Q4 11.7 7.1 18.8 FY15 - Q1 13.2 5.9 19.1 2.4 4.7 FY14 - Q1 12.3 5.8 18.1 FY13 - Q1 10.4 5.8 16.2 Aerospace &
Slide 13: Restructuring Update: Savings Continue to Increase
Restructuring Update Savings Continue to Increase • Formal Restructuring Announced in July, 2015 • Momentum Continues to Accelerate – Current Revised Cost Approaching $250 Million – Annualized Savings Estimate Revised to $180 - $200 Million – Headcount Reduction of 3,500 – 70+ Offices Impacted – Cas
Slide 14: End-Market Diversity
End-Market Diversity Revenues Operating Profit Aerospace & Technology Buildings & Infrastructure Industrial (Incl. Life Sci.) Petroleum & Chemicals 14 * Preliminary Estimate of LOB Breakout Based on FY16 Q1 Revenue & Operating Profit
Slide 15: Capital Allocation
Capital Allocation Strong Cash Flow Provides Financial Stability & Flexibility • $422 Million Spent During FY15 on Previous Share Buy-Back Program • New $500 Million Share Buy-Back Over Next 3 Years • Reflects Confidence in Long-Term Value Creation • Balanced Deployment for Profitable Growth & Share
Slide 16: Next Steps
Next Steps 16
Slide 17: Sales Excellence: Taking Sales to a Higher Level
Sales Excellence Taking Sales to a Higher Level • Integrated Sales in Lines of Business (LOB) • Established Sales Center of Excellence – Strategy & Branding – Performance & Innovation – Business Intelligence & Enabling Technology – Talent Engine • Early Results – Alignment of Sales & Operations Team
Slide 18: Project Delivery Excellence
Project Delivery Excellence Quality and Performance That Deliver Value • Driving Change – Greater Client Value – Reduce Jacobs Operating Cost • Immediate Impact – Clearer Accountability – Best Practice Compliance – Noticeable Performance Improvement • Strategic Initiatives – Modernize/Standardize To
Slide 19: Summary: Strong Focus on Execution & Growth
Summary Strong Focus on Execution & Growth • FY16 Outlook – Newly Established Business Structure – Closer Alignment with Global Customers – Confirming FY2016 Adjusted EPS Guidance of $2.80 to $3.30 • Jacobs is Strong – Diverse End-Markets, Customers, & Geography – Smart Use of Cash – Investing in Sy
Slide 20: Thank You!
Thank You! © 3Copyright February 2016 Jacobs www.jacobs.com | worldwide
Slide 21: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following table reconciles, for Q1FY16, net earnings attributable to Jacobs, diluted EPS, Selling General & Administrative expenses, and Operating Profit determined on the basis of U.S. GAAP to their respective “adjusted” (i.e., non-GAAP) amounts. The adjustment re