Slide 1: Fiscal 4th Quarter Earnings Conference Call
Fiscal 4th Quarter Earnings Conference Call November 20th, 2018 1
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 a
Slide 3: Today's Agenda
Today’s Agenda ▪ Business Review – A Tribute to Noel Watson – Inclusion and Diversity – Review FY18 Highlights – Line of Business Review – Recap of Portfolio Transformation ▪ Financials Review – Q4 and FY18 Results – Balance Sheet – Capital Allocation ▪ Summary and Outlook NASA Johnson Space Center
Slide 4: In Honor of Noel Watson
In Honor of Noel Watson Noel Watson created a Foundation of Excellence at Jacobs 4
Slide 5: #WeAreJacobs
#WeAreJacobs ▪ Engagement and empowerment of employees ▪ Creativity to solve critical challenges ▪ Attraction and retention of the brightest talent Careers Network VetNet Prism Women’s Network OneWorld Harambee Enlace Global commitment to Inclusion and Diversity drives shareholder value 5
Slide 6: Strong Execution; Transforming Portfolio
Strong Execution; Transforming Portfolio Tracking Well Against 3 Year Strategy ▪ Culture of accountability, operational execution and profitable growth life science space exploration ▪ Portfolio positioned to higher margin, less cyclical businesses Strong Fiscal Year 2018 Performance ▪ Pro forma rev
Slide 7: Continued Backlog Growth
Continued Backlog Growth FY18 Backlog Growth Across All Segments Ex ECR Gross Margin In Backlog +150 bps Energy, Aerospace, $26.7 $27.3 Chemicals and Technology, Resources Environmental (ECR) and Nuclear (ATEN) ATEN $19.8 $7.1 $8.9 $8.9 $11.4 $11.4 2 BIAF FY17Q41 PF FY17Q4 FY18Q4 Buildings, Infrastr
Slide 8: Energy, Chemicals and Resources Delivers Performance
Energy, Chemicals and Resources Delivers Performance Strategic Initiatives Accomplishments ECR Operating Profit ($ in millions) Shift Market N. A. and Europe transitioned to Focus refining and chemicals $218 Expand Successful growth in Middle East Internationally and Asia $154 $161 Grow FY18 pro for
Slide 9: Jacobs: Global, Data-Driven Solutions Provider
Jacobs: Global, Data-Driven Solutions Provider FY18 Q4 Pro Forma excluding ECR FY18 Revenue U.S./Int’l Mix Talent Force Public/Private Sector 71%/29% ~50,000 67%/33% $4.4 BIAF ATEN $6.2 Driving revenue mix in high value markets Leveraging innovation across interconnected portfolio Aligning around na
Slide 10: Aerospace, Technology, Environmental and Nuclear
Aerospace, Technology, Environmental and Nuclear ATEN Focus on High Priority Federal Programs Q4 ATEN Snapshot Q4 Revenue by Sector ▪ Demand healthy in Defense, Intelligence and Cyber U.S./International 86% / 14% ▪ Robust, long-term nuclear remediation pipeline Government ~85% Reimbursable ~80% Uniq
Slide 11: Buildings, Infrastructure and Advanced Facilities
Buildings, Infrastructure and Advanced Facilities BIAF Strong Global Infrastructure Demand FY18 Q4 BIAF Snapshot FY18 Q4 Revenue by Sector ▪ Urbanization driving infrastructure and built environment needs ▪ U.S. mid-terms a positive for infrastructure spending U.S./International 60% / 40% ▪ U.K. dem
Slide 12: Fiscal 2018 Q4 Results
Fiscal 2018 Q4 Results Another Strong Quarter of Margin Expansion Revenue increased 7% pro forma – growth across all lines of business GAAP Operating Profit Margin 5.8% Adj. Operating Margin 6.8% – up 130 bps y/y GAAP EPS of ($0.16) – impacted by: ▪ $1.18 charge from tax reform impact ▪ $0.18 of CH2
Slide 13: Fiscal Year 2018 Results
Fiscal Year 2018 Results Strong Pro Forma Growth + CH2M Accretion Revenue increased 9% pro forma GAAP Operating Profit Margin 4.3% Adj. Operating Profit Margin 6.0% – up 60 bps y/y GAAP EPS of $1.28 – impacted by: ▪ $1.75 charge from tax reform impact ▪ $1.34 of CH2M restructuring and other integrat
Slide 14: Q4 and FY18 Jacobs LOB Segment Financials
Q4 and FY18 Jacobs LOB Segment Financials FY18 Fourth Quarter Fiscal Year 2018 Adjusted OP Margin Operating vs. Operating vs. OP Margin OP Margin Line of Business Profit PF FY17Q44 vs. PF Profit PF FY174 vs. PF FY174 vs. PF FY173 FY17Q44 Aerospace, Technology, $95 M +14% 7.3% $312 M +12% 7.1% 7.5%1
Slide 15: CH2M Acquisition Costs & Synergies
CH2M Acquisition Costs & Synergies Effectively Raising Cost Synergy Targets FY18 Net Synergies of $85 M ex ECR, exceeded $75 M Prior Estimate ▪ ~80% of targeted $175 M run-rate savings at end of Q4; above 70% prior estimate Expected CH2M Net Cost Synergies will remain $175 M after ECR sale ▪ Excludi
Slide 16: Balance Sheet
Balance Sheet Reported Fourth Quarter Results ECR Sale to Improve Pro Forma Financial Flexibility Maintained Healthy Balance Sheet Net Cash Reported Net Debt ▪ Update to opening balance sheet reserves for Inpex legal matter $1.5 FY18 Q4 FY18 Q41 ▪ Q4 cash and equivalents of $0.8 B and gross debt of
Slide 17: Disciplined, Value-Driven Capital Allocation
Disciplined, Value-Driven Capital Allocation Track record of Accelerate organic and external growth solid returns for ▪ Strong organic growth opportunities in core business shareholders ▪ Pipeline of strategic M&A opportunities ▪ Targeted M&A using rigorous evaluation ▪ Strong M&A execution and retu
Slide 18: Delivering Superior Shareholder Value
Delivering Superior Shareholder Value ▪ Inspiring employees through a high performance culture reflecting Reaffirms FY19 Financial Outlook accountability, inclusion and diversity ▪ Aggressively capturing growth opportunities Expect fiscal 2019 pro forma adj. EBITDA1 of through innovation in sustaina
Slide 19: Save the date
Save the date Investor Day Feb. 19, 2019 in Miami, FL • 12:30-5:00 pm – Corporate Strategy Presentation • 5:00-6:00 pm – Reception with Executive Management 1 Hotels | www.1hotels.com 19
Slide 20: Thank you!
Thank you! © Copyright Jacobs www.jacobs.com | worldwide
Slide 21: 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
Slide 22: 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
Slide 23: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) Adjusted net earnings, adjusted EPS and adjusted operating profit are non-GAAP financial measures that are calculated by excluding (i) the costs related to the 2015 restructuring activities, which included involuntary terminations, the abandonment of certain leas