Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Raymond James Defense & Government Services Conference 2018

20 slides from Jacobs Solutions's conference presentation, May 30, 2018

  1. Slide 1: Delivering Advanced Solutions for a More Connected, Sustainable World

    Investor Presentation February 2018 Delivering Advanced Solutions for a More Connected, Sustainable World May 2018 Investor Presentation

  2. 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

  3. Slide 3: Jacobs (JEC) – A Global Professional Services Leader

    Jacobs (JEC) – A Global Professional Services Leader FY18E Revenue ~$15 B Net Debt $1.7 B Q2 Gross Margin 20% Quarterly Dividend $0.15 Q2 $8.8 Backlog $6.9 BIAF ATEN FY18E Adj. EPS $4.00 to $4.403 Q2 U.S./Int’l Mix ~60/40 $26.5 B ECR $10.9 FY18E Share Count 139 M Employees ~77,000 Three Global Lines

  4. Slide 4: Aerospace, Technology, Environmental and Nuclear (ATEN)

    Aerospace, Technology, Environmental and Nuclear (ATEN) Share Gains Driven By Unique Delivery Model Q2 ATEN Snapshot Q2 Revenue by End Market  One of the largest government services providers US/International 85% / 15%  Gaining share by leveraging strong technical expertise, Government ~85% locali

  5. Slide 5: ATEN – Large, Growing & Fragmented Market Presents Opportunities

    ATEN – Large, Growing & Fragmented Market Presents Opportunities Differentiated Operating Model Driving Share Gains $2.0T 5 Total Global Addressable Delivery Cost Market Expertise + Model + Structure • Solid reputation with • Our dedicated • Third-party validated strong CPAR scores operational model

  6. Slide 6: ATEN – Large Multi-Year Highly Technical Contracts

    ATEN – Large Multi-Year Highly Technical Contracts Agency Award Size Duration Incumbent Project Scope Operating the Missile Defense Integrated Operations Center, supporting 8.5 years its network infrastructure, modeling and simulation, development of $4.6 B to 2025 systems • ~75% of scope is related

  7. Slide 7: ATEN – Competitive Landscape

    ATEN – Competitive Landscape CY2018E Revenue ($B) Leidos GDIT + CSRA Booz Allen Jacobs ATEN CACI DXC NewCo SAIC ManTech Engility Source: Bloomberg estimates, GD/CSRA presentation - http://investorrelations.gd.com and Jacobs company estimates Jacobs Aerospace, Technology, Environmental and Nuclear (A

  8. Slide 8: Buildings, Infrastructure and Advanced Facilities (BIAF)

    Buildings, Infrastructure and Advanced Facilities (BIAF) Q2 BIAF Snapshot Q2 Revenue by End Market Strong Global Infrastructure Demand  U.S. infrastructure poised to accelerate driven by Omnibus US/International 54% / 46% Spending Bill and state/local funding measures  U.K. transportation market r

  9. Slide 9: Energy, Chemicals and Resources (ECR)

    Energy, Chemicals and Resources (ECR) Energy  Asia and Middle East clients investing to meet local fuel requirements Q2 ECR Snapshot Q2 Revenue by End Market  Rising U.S. and Canadian oil production is continuing to create opportunity for logistics infrastructure in the region US/International 65%

  10. Slide 10: CH2M Integration On Track

    CH2M Integration On Track CH2M Acquisition Off To a Great Start Employees Energized and Cultures Aligning Well  New organizational structure fully implemented worldwide  CH2M voluntary attrition remains below pre-acquisition levels High Confidence in Cost Synergies  All major cost synergy work st

  11. Slide 11: Strong Backlog Growth

    Strong Backlog Growth Pro Forma Q2 backlog up 9% year over year1 Higher Margin Professional Services Backlog Continues to be a Driver of Growth Backlog by Line of Business 26.2 26.5 8.9 8.9 18.5 $6.9 $8.8 Aerospace, Technology, 6.1 Environmental and Nuclear Buildings, Infrastructure 17.7 and Advance

  12. Slide 12: FY18Q2 Results

    FY18Q2 Results Strong Pro Forma Revenue Growth Revenue increased 16%1 compared with pro forma Jacobs + CH2M prior year period Q2 GAAP Operating Profit Margin 3.7%, Adjusted Op Margin 5.6%2 GAAP EPS $0.34 Adjusted EPS of $1.00 up 28% y/y2  Includes a headwind from a legal matter of $0.09  Excludes

  13. Slide 13: Revenue and Gross Margin %

    Revenue and Gross Margin % $4.5 $3.9 25% $4.0 20% $3.5 18% 18% 18% 18% 20% 16% $3.0 $2.8 $2.5 15% $2.0 10% $1.5 $2.6 $2.7 $2.6 $2.8 $2.3 $2.5 $1.0 5% $0.5 $0.0 0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Revenue Revenue from CH2M Gross Margin % Revenue Step Up at an Accretive Gross Margin FY18Q1 revenue

  14. Slide 14: FY18Q2 Jacobs LOB Segment Financials

    FY18Q2 Jacobs LOB Segment Financials Operating OP Margin Adj. OP Margin Line of Business vs. FY17Q24 Profit vs. FY17Q24 vs. PF FY17Q23 5.5% 7.1%1 Aerospace, Technology, Environmental and Nuclear (ATEN) $61 M +38% -180 bps +90 bps 7.8% 7.8% Buildings, Infrastructure and Advanced Facilities (BIAF) $13

  15. Slide 15: CH2M Acquisition Costs & Synergies

    CH2M Acquisition Costs & Synergies CH2M Cost Synergies On Track On Track to Achieve CH2M Cost Synergies  Approximately 1/3 of targeted $150 M estimated run-rate savings achieved at end of Q2  Targeting to achieve 50% of $150 M of synergies on run-rate basis by end of year  Continue to expect $50

  16. Slide 16: Balance Sheet and Capital Allocation

    Balance Sheet and Capital Allocation Near Term Focus to De-Lever Strong Cash Flow Expected in 2H18  Approximately $250 million in cash used in Q2 for CH2M related payments including final deal consideration payment  Expect de-leveraging in the second half 2018 Healthy Balance Sheet Maintained  En

  17. Slide 17: Summary and FY18 Outlook

    Summary and FY18 Outlook Executing Well Against 3-Year Strategy Continued Focus on Driving Our Strategy  Maintain winning culture of safety, project excellence and client centricity  Drive increased profit margin across all lines of business  Grow profitably by pursuing higher margin opportunitie

  18. Slide 18: Thank you!

    Thank you! © Copyright Jacobs www.jacobs.com | worldwide

  19. Slide 19: Non-US GAAP Financial Measures

    Non-US 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 t

  20. Slide 20: Non-GAAP Financial Measures (cont’d)

    Non-GAAP Financial Measures (cont’d) Adjusted net earnings and adjusted EPS are non-GAAP financial measures that are calculated by excluding (i) the after-tax costs related to the 2015 restructuring activities, which included involuntary terminations, the abandonment of certain leased offices, combi

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