Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Jacobs — Barclays Industrial Select Conference 2018
21 slides from Jacobs Solutions's conference presentation, Feb 22, 2018
Slide 1: Delivering Advanced Solutions for a More Connected, Sustainable World
Investor Presentation February 2018 Delivering Advanced Solutions for a More Connected, Sustainable World
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
Slide 3: A Global Professional Services Leader
A Global Professional Services Leader • FY17 Execution Repositioned Jacobs For Profitable Growth – Allocated resources toward growing end-markets with lower risk postures – Made strategic acquisitions of CH2M and Blue Canopy to accelerate strategy – Increased investments in digital technology across
Slide 4: Jacobs (NYSE:JEC) – A Global Professional Services Leader
Jacobs (NYSE:JEC) – A Global Professional Services Leader Q1 Backlog $6.3 B FY Revenue1 ~$15 B Net Debt $1.5 B $6.6 CH2M B Q1 Gross Margin2 18% Quarterly Dividend $0.15 $5.3 $26 B B FY18E Adj. EPS6 $3.85 to $4.25 Q1 U.S./Int’l Mix ~60/40 $2.6 $5.4 B B Fixed Price Construction ~5% Employees 74,000 Q1
Slide 5: Aerospace & Technology (A&T) Snapshot (JEC Legacy)
Aerospace & Technology (A&T) Snapshot (JEC Legacy) FY17 Segment Results4 End Markets Served (% OF 2017 Revenue) Backlog $6.2 B Gov't Services 74% Revenue $2.4 B Comm. Auto/Aero 9% Revenue w/CH2M >$4 B Comm. Telecom 7% OP Margin 8.6 % Nuclear 7% US/Int’l Mix 88% / 12% Environmental 3% Business Model
Slide 6: A&T – Large, Growing & Fragmented Market Presents Significant Opportunities
A&T – Large, Growing & Fragmented Market Presents Significant 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 operat
Slide 7: A&T – Large Multi-Year Highly Technical Contracts
A&T – Large Multi-Year Highly Technical Contracts Agency Award Size Duration Incumbent Project Scope Operating the Missile Defense Integrated Operations Center, supporting its 8.5 years $4.6 B network infrastructure, modeling and simulation, development of systems to 2025 • ~75% of scope is related
Slide 8: A&T – Competitive Landscape
A&T – Competitive Landscape CY2018E Revenue ($B) Leidos GDIT + Booz Allen Jacobs CACI DXC NewCo SAIC ManTech Engility CSRA ATEN Source: Bloomberg estimates, GD/CSRA presentation - http://investorrelations.gd.com and Jacobs company estimates Jacobs Aerospace, Technology, Environmental and Nuclear (AT
Slide 9: Summary - Aerospace & Technology
Summary - Aerospace & Technology Continuing to Deliver Strong Backlog Growth • Large Market Opportunity With Highly Recurring Revenue Model – Portfolio centers around national priority programs – Differentiated delivery model combing expertise, delivery and cost posture – Ongoing integration of Blue
Slide 10: Buildings & Infrastructure
Buildings & Infrastructure Water, Transportation & Resilience • Global Modernization of Infrastructure Unfolding Investments Driving Opportunities – ‘Big 3’ priorities – Water, Transportation and Resilience – Continued success driving Jacobs Connected Enterprise (JCE) digital solutions • Infrastruct
Slide 11: Industrial
Industrial Stable Life Sciences Performance with Expected Recovery in • Life Sciences – Steady Mining/Minerals – Growth expected to be driven by Gene and Cell Therapy – Jacobs + CH2M expands advanced facility leadership position • Mining, Minerals, and Specialty Chemicals – Improving – Currently see
Slide 12: Petroleum & Chemicals
Petroleum & Chemicals Positioned Well for Improving • Upstream and Midstream – Improving End-Market Demand – CAPEX spend expected to improve on oil prices stabilizing at 3-year highs • Chemicals - Steady – Next cycle of petrochemicals facilities on the horizon • Refining - Steady – U.S. refining CAP
Slide 13: Revenue and Gross Margin %
Revenue and Gross Margin % Revenue GM % $3.0 20% 18% 18% 18% 18% 16% 2.8 15% 2.7 Billions $2.5 2.6 2.5 10% 2.3 $2.0 5% F1Q17 F2Q17 F3Q17 F4Q17 F1Q18 Delivering Revenue Growth, While Maintaining Gross Margins FY18Q1 revenue includes impact from CH2M stub period 12/15-12/29 of $131 M in total revenue
Slide 14: CY17 CH2M Performance
CY17 CH2M Performance Full Year CH2M Results • Strong Backlog Performance Year over Year Demonstrates Improved Performance – Backlog up over 18% y/y excluding Chalk River, MoPac and Inpex • Increase due to multi-year Federal, program management & O&M awards – Gross margin in backlog up 14% y/y, ex C
Slide 15: CH2M Acquisition Costs and Synergies
CH2M Acquisition Costs and Synergies CH2M Integration On Target • Integration Management Office (IMO) – Dedicated cross-functional team aligned to drive value capture program • On Track to Achieve Estimated CH2M Cost Synergies – Over 25% of $150 M estimated run-rate savings achieved at end of Q1; ex
Slide 16: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Near Term Focus to De-Lever • Healthy Balance Sheet Post Close – Ending Q1 cash and equivalents of $1.1 B – Ending Q1 gross debt of $2.6 B • $1.5 B term loan • $1.1 B revolver – $500 M of liquidity capacity remaining on revolver • Expect to de-lever throughout 20
Slide 17: Summary and FY18 Outlook
Summary and FY18 Outlook Executing Well Against 3-Year • On Track to Execute Against 3 Year Strategy Strategy – Maintain Culture Of Safety, Integrity and Innovation – Financial Discipline to Drive Profitable Growth – Solid Start to FY18 with Improving Macro Backdrop • Updated FY18 Outlook – Reiterat
Slide 18: Thank You!
Thank You! © Copyright Jacobs February 20, 2018 www.jacobs.com | worldwide
Slide 19: Consolidated Footnotes
Consolidated Footnotes 1) FY Combined Jacobs + CH2M Revenue as of FY18Q1 TTM 2) FY18 Q1 financials include 2 week CH2M stub period 3) FY18 Q1 line of business margins exclude unallocated corporate expenses 4) FY17 ending September 29, 2017 5) Expected cumulative 2017-2021; based on internal assessme
Slide 20: 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
Slide 21: Non-US GAAP Financial Measures (cont’d)
Non-US 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, co