Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — RBC Capital Markets Engineering, Construction, Infrastructure Solutions Conference 2022
42 slides from Jacobs Solutions's conference presentation, Sep 7, 2022
Slide 1: Jacobs Investor Presentation
Jacobs Investor Presentation September 2022
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 of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934
Slide 3: Jacobs – Company Overview
Jacobs – Company Overview Fiscal 2021 By Sector1 By Region By Mix Advanced Manufacturing APAC Other Reimbursable UK & 7% 4% Solutions Solutions 76% Cities & Places Europe 24% 8% Infrastructure 23% Space 32% 11% Health & Life Sciences ▪ Jacobs provides a full spectrum of professional 11% Energy & ser
Slide 4: Our foundation is strong
Our foundation is strong Purpose To create a more connected, sustainable world. Values We do things right. We challenge the accepted. We aim higher. We live inclusion. Employee Value Jacobs. A world where you can. Statement Where you Where you Where you can be you. can do. can grow. 4
Slide 5: Our cultural transformation: An inspirational journey for all
Our cultural transformation: An inspirational journey for all + Agile + Learning Culture Innovation + Inclusion & Diversity Empowerment & Accountability When we learn and grow together, we activate Empowerment & Accountability, Inclusion & Diversity, and Innovation. We lead, embrace, and anticipate
Slide 6: Jacobs fiscal 2021 segment summary
Jacobs fiscal 2021 segment summary Critical Mission People & Places PA Consulting Solutions Solutions Investment1 Gross revenue $8,378 million Revenue (% of Total) $5,087 million $1,028M Pro Forma1 Net revenue $5,996 million US / International 82% / 18% 61% / 39% 13% / 87% (~78% UK) Public / Private
Slide 7: A diversified business profile; continue to reshape toward higher growth
A diversified business profile; continue to reshape toward higher growth Diversified Revenue Mix Aligned Portfolio Actions Result in Higher Growth to Secular Growth Trends1 Addressable Market PA Consulting Cyber & Intel Digital Modernization Data Analytics National Security Global Infrastructure Cri
Slide 8: Portfolio strongly aligned with most attractive secular growth
Portfolio strongly aligned with most attractive secular growth Jacobs portfolio by market1 ▪ ~$8T addressable market – highly fragmented (approx. from FY’21 Gross Revenue) ▪ Targeting higher growth and higher margin sub-segments Advanced Manufacturing ▪ Client segments expected to outpace market gro
Slide 9: Jacobs deep domain knowledge across diverse markets
Jacobs deep domain knowledge across diverse markets Intel Penn Station Access, Metropolitan Leverage digital replication to design and program Jacobs portfolio by market1 Transportation Authority: manage increased semiconductor manufacturing capacity (approx. from FY’21 Gross Revenue) Prime designer
Slide 10: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Nature-based Solutions Net Zero Campus Nuclear Decommissioning Clean Energy Permitting Sidmouth Amphitheatre, UK: in partnership with Devon Sandia National Laboratories, CA: roadmap and technical Norsk Nukleær D
Slide 11: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including BlackLynx) Strong base of recurring revenue; new business pipeline margin-accretive U.S. / International 81% / 19% ▪ Multi-year enterprise contracts provide long-term stability Government ~88% ▪ High-value solutions and ef
Slide 12: Enabling the client mission
Enabling the client mission CMS creates, delivers and succeeds with certainty for its customers FEDERAL CIVILIAN DEFENSE INTELLIGENCE INTERNATIONAL COMMERCIAL ▪ NASA’s largest non-OEM ▪ Delivers warfighter ▪ Enables critical U.S. national ▪ Supports U.K. and Australia ▪ Complete end-to-end 5G servic
Slide 13: Critical Mission Solutions – recent notable contract wins
Critical Mission Solutions – recent notable contract wins Awarded Operating the Missile Defense Integrated Operations Awarded Department of Energy’s Idaho National Lab as the Center, supporting its network infrastructure, prime partner to use our nuclear tech-driven $4.6B modeling and simulation, an
Slide 14: Cyber – recent notable contract wins
Cyber – recent notable contract wins Awarded Providing wide-ranging cyber, digital services and modern software engineering that support geospatial intelligence Awarded $302M (GEOINT) for accessing and delivering intelligence and Providing strategic and tactical warning, exposing and exploiting terr
Slide 15: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot Deep domain expertise + data-driven solutions + global scale (Net Revenue Q3 2022) ▪ Impact of expertise at scale driving differentiated solutions U.S. / International 65% / 35% ▪ Global delivery model benefiting capacity demands and talen
Slide 16: People & Places Solutions markets
People & Places Solutions markets P&PS provides end-to-end solutions for our clients’ most complex challenges – whether climate change, energy transition, connected mobility, integrated water management, smart cities or vaccine manufacturing Advanced Health and Life Sciences Energy & Environmental C
Slide 17: People and Places Solutions project highlights
People and Places Solutions project highlights Ellinikon Urban Thames Tunnel Expo 2020 Dubai The Elizabeth Line Regeneration Supported London’s As the official program Supporting delivery of Overall program Thames Tideway Tunnel delivery management the Elizabeth line, the management consultant ‘supe
Slide 18: Global integrated delivery provides access to leading domain knowledge at scale
Global integrated delivery provides access to leading domain knowledge at scale Poland GDC 2,270 people Offices in Krakow and Warsaw India GDC 3,180 people Offices in New Delhi, Hyderabad, Mumbai, Kolkata, Pune & Bangalore Philippines GDC Malaysia GDC 330 people 265 people Office in Manila ▪ Drives
Slide 19: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q3 2022) Unique combination of outcome-driven strategic and digital consulting ▪ End-to-end innovation by combining strategists, scientists and digital experts UK / US / Other 76% /13% / 11% ▪ Deep industry expertise across a diverse set of sectors and c
Slide 20: Collaborating for a successful partnership
Collaborating for a successful partnership Status PA Consulting KPIs Current Update Culture and Number of Key new hires across Launched Women in Leadership team partners up >20% operations, research, Talent Leadership Program now 50% women since investment technology & sales Resilient Scientific Thr
Slide 21: Advisory Services accelerating our positive social impact
Advisory Services accelerating our positive social impact Our teams are motivated by a common desire to create a better future for all. Improving healthcare for families Connecting communities Forestry protection Impacting air quality for all In collaboration with PA, on behalf of a Jacobs was recen
Slide 22: PA Consulting indicative projects
PA Consulting indicative projects Improving Peoples Lives: Building a More Sustainable World: Protecting the World: Designing Next Gen, Smart Infrastructure: Working across the ecosystem with priority focus on Embracing sustainability to transform business Helping organizations evolve, reshape & reo
Slide 23: Fiscal 2022 Q3 results
Fiscal 2022 Q3 results Revenue up 7% y/y, Net Revenue up 8% y/y and up 11% pro forma in constant currency GAAP Operating Profit (OP) of $266M and OP Margin of 6.9% Adj. OP of $327M up 4% and up 8% in constant currency; Net Revenue Adj. OP Margin of 10.3% Improving pediatric GAAP Net Earnings from Co
Slide 24: Segment financials
Segment financials $’s in millions Q3 2021 Q3 2022 Y/Y Y/Y CC2 Critical Mission Solutions Operating Profit 108 104 -3.5% 0.1% as a % of revenue 8.9% 7.9% (96) bps People & Places Solutions Operating Profit 205 210 2.3% 8.1% . as a % of net revenue 13.8% 13.2% (62) bps Putting people first PA Consult
Slide 25: Balance sheet and cash flow
Balance sheet and cash flow Continued strong cash flow generation ▪ Q3 cash flow from operations (CFFO) ($249M) and FCF1 of ($281M); includes net one-time cash impacts of $490M related to $480 Inpex legal matter and other items ▪ Quarterly DSO of up half a day compared to Q3 FY21 ▪ On track to achie
Slide 26: Outlook & Summary
Outlook & Summary Updating Fiscal 2022 Outlook ▪ Diverse portfolio with significant recurring revenue provides ability to grow under multiple economic scenarios ▪ Expect fiscal fourth quarter adjusted EBITDA of $340M to $360M and adjusted EPS of $1.75 to $1.85 ▪ Since providing original fiscal 2022
Slide 27: Challenging today. Reinventing tomorrow.
Challenging today. Reinventing tomorrow. Our passion and commitment to take immediate action on climate change comes from our leadership and our 55,000 employees who, together, are pushing the limits of what’s possible by creating sustainable solutions that leave no one behind. We do things right. W
Slide 28: Office of Global Climate Response and Environmental, Social & Governance (ESG)
Office of Global Climate Response and Climate Response Environmental, Social & Governance (ESG) Climate change: the greatest challenge and opportunity of Energy Transition Natural Resource Stewardship our generation ▪ Clean energy generation ▪ Integrated water management ▪ Grid modernization & energ
Slide 29: Environmental, Social & Governance Summary
▪ Climate Action Plan 2022 Environmental, Social & Governance Summary ▪ FY21 ESG Disclosures ▪ PlanBeyond 2.0 A sustainable business model aligning purpose and vision with both growth and ▪ Climate Risk Assessment FY22 positive impact: ▪ Approved Science-Based Targets ▪ Fully integrates purpose with
Slide 30: Revenue by sector
Revenue by sector Approximate % Markets P&PS CMS of Jacobs FY21 Revenue ▪ Water Infrastructure ▪ Transportation ▪ Telecom 32% ▪ Defense National Security ▪ Intelligence 16% ▪ Cyber ▪ Electronics & Data Centers Advanced Manufacturing ▪ Specialized Manufacturing ▪ Automotive 4% ▪ Health Health & Life
Slide 31: Sector description
Sector description Markets Definitions Addresses global national governments’ focus on modernizing aging infrastructure and post-pandemic economic stimulus. As an example, over 80% of the $550B US Infrastructure Investment and Jobs Act is aligned with our Infrastructure markets (Water, Transportatio
Slide 32: Successful acquisition track record
Successful acquisition track record Close Investment Amount Segment Strategic Rationale Performance Relative to Plan Date 12/17 CH2M $3.3B CMS / P&PS / Water, Environmental & Infrastructure Consultancy & Exceeding original expectation driven by ECR (Eliminated Design accelerating demand for ESG & Te
Slide 33: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $’s in millions FY 2020 FY 2021 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 26,631 26,631 28,006 27,790 28,090 Revenue 3,360 3,427 3,260 3,520 13,567 3,382 3,548 3,576
Slide 34: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 $’s in millions 2020 2020 2020 2020 2020 2021 20211 2021 2021 2021 2022 2022 2022 Critical Mission Solutions Backlog 8,473 9,135 9,066 9,104 9,104 9,683 9,779 9,565 10,589 10,589 10,798 10,556 10,222 Revenue 1,182 1,243 1,211 1,329 4,966
Slide 35: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $’s in thousands FY 2020 FY 2021 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 26,540 101,024 26,237 26,383 25,301 (pre-tax) Amortizatio
Slide 36: 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 initiatives and acquisition related programs. (2) Includes (a) the removal of pass through revenues and costs for the People & P
Slide 37: 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 38: Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA 38
Slide 39: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 39
Slide 40: Reconciliation of Jacobs Revenue Detail
Reconciliation of Jacobs Revenue Detail 40
Slide 41: Selected financial data
Selected financial data Reported Q3 Constant $’s in millions FX Impact 2022 Currency Q3 2022 Critical Mission Solutions Revenue 1,317 27 1,344 Operating Profit 104 4 108 People & Places Solutions Net Revenue 1,597 52 1,649 Operating Profit 210 12 222 PA Consulting Revenue 278 34 312 Operating Profit
Slide 42: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics 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 o