Slide 1: Fourth Quarter & Fiscal Year 2022 Results: 5th Annual Investor Briefing
FOURTH QUARTER & F I S C A L Y E A R 2 0 2 2 R E S UL T S 5TH ANNUAL INVESTOR BRIEFING Our strategy, Our path, Our outlook BUSINESS CONFIDENTIAL / ©Jabil Inc. 2022. All Rights Reserved.
Slide 2: Today's Agenda
TODAY’S AGENDA • Welcome and Jabil Overview • End-market Update • 4th Quarter and FY 2022 Results • FY 2023 Outlook • Capital Allocation Framework Update BUSINESS CONFIDENTIAL / ©Jabil Inc. 2022. All Rights Reserved.
Slide 3: Forward Looking Statement
Forward Looking Statement Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for the fourth quarter and full fiscal year 2022; our guidance for future financial performance in our first quarter of fiscal year
Slide 4: Jabil FY 2022: Our Foundation is Solid
Jabil FY 2022 | Our Foundation is Solid FY22 FINANCIAL HIGHLIGHTS DEDICATED END MARKETS $33.5B Net Revenue 5G WIRELESS MOBILITY & CLOUD PACKAGING 4.6% Core Margin1 $7.65 Core Diluted EPS1 DIGITAL PRINT NETWORKING & RETAIL AND STORAGE HEALTHCARE $810M Free Cash Flow1 INDUSTRIAL AUTOMOTIVE & CONNECTED
Slide 5: Global Operations Enable Localized Manufacturing
Global Operations Enable Localized Manufacturing 100+ SITES LOCATED AROUND THE WORLD ASIA Bandung Gotemba Penang Singapore Beijing Hajioji Pune Taichung GLOBAL HEADQUARTERS Changhua Ho Chi Minh Shanghai Tianjin ST. PETERSBURG, FL Chengdu Hsinchu City Shenzhen Weihai Deqing Huangpu Suzhou EUROPE & MI
Slide 6: Intentional Diversified Growth | Key End-Markets
Intentional Diversified Growth | Key End-Markets REVENUE Digital Print (In billions) Mobility & Retail Industrial & Semi-Cap 11% CAGR $33.5 $29.3 Healthcare & $33.5B $27.3 Packaging $25.3 $22.1 5G Wireless R E V E N U E & Cloud F Y 2 2 Connected Devices Networking & FY18 FY19 FY20 FY21 FY22 Storage
Slide 7: End-Market: Automotive & Transport
End-Market: Automotive & Transport ADAS/AUTONOMOUS Short-term: emergency braking, lane departure, etc. AUTO & TRANSPORT Long-term: hands, eyes & brain-off driving FY18-22 Revenue CONNECTIVITY Growth: 121% Remote diagnostics, over the air updates, V2X, V2I, V2V, self parking, etc. ADAS Camera Display
Slide 8: End-Market: 5G Wireless & Cloud
End-Market: 5G Wireless & Cloud CLOUD NATIVE PLATFORMS Edge Compute Enterprise App Migration NEW & EXCITING 5G WIRELESS WORKLOADS & CLOUD AI / ML FY18-22 Revenue Growth: 150% TAM: $88B MOBILE & DIGITAL LIFE Internet of Things (IoT) 8
Slide 9: End-Market: Healthcare
End-Market: Healthcare HOSPITAL & URGENT CARE Aging Population PHARMACY & HEALTHCARE & CLINICS PACKAGING Point of Care Solutions FY18-22 Revenue Growth: 108% TAM: $577B IN HOME Personalized Medicine Patient Administered 9
Slide 10: End-Market: Industrial & Semi-cap
End-Market: Industrial & Semi-cap CAPITAL EQUIPMENT Trends Will Continue to Spur Demand Increased precision and global INDUSTRIAL & CLEAN implementation SEMI-CAP TECHNOLOGY Microgrids 18-22 Revenue Shifting use Patterns Growth: 43% TAM: $521B ENERGY STORAGE SYSTEMS Intelligent Grid Management Utilit
Slide 11: Our Portfolio: Revenue by End-Markets
Our Portfolio Revenue by End-Markets DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING FY18 – FY22 FY18 – FY22 $ in billions FY18 FY22 Growth $ in billions FY18 FY22 Growth Auto & Transportation $1.4 $3.1 121% Digital Print & Retail $2.1 $3.1 48% Healthcare & Packaging $2.4 $5.0 108% Industrial &
Slide 12: Fourth Quarter Income Highlights
Fourth Quarter Income Highlights THREE MONTHS ENDED AUGUST 31, (In millions, except for per share data) 2022 2021 Net revenue $9,030 $7,409 U.S. GAAP operating income $409 $265 U.S. GAAP net income $315 $175 U.S. GAAP diluted earnings per share $2.25 $1.16 Core operating income (non-GAAP)1 $447 $314
Slide 13: Fourth Quarter Segment Results
Fourth Quarter Segment Results Income Highlights DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue Increase of 12.6% ▪ Core margin* (non-GAAP) of 5.1% ELECTRONICS MANUFACTURING SERVICES (EMS) EMS $9.0B DMS ▪ Net Revenue Increase of 32.3% 51% REVENUE 49% ▪ Core margin* (non-GAAP) of 4.8% TOTAL C
Slide 14: Financial & Business Update
FINANCIAL & BUSINESS UPDATE FY22 Results End-Market Outlook Supply Chain Update MIKE DASTOOR FY23 Guidance CHIEF FINANCIAL OFFICER 14
Slide 15: Shareholder Focus
Shareholder Focus Financial Financial Priorities Priorities Shareholder Focus EXPAND INCREASE GENERATE OPERATING EARNINGS STRONG CASH MARGINS PER SHARE FLOWS ALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY 15
Slide 16: FY22 Income Highlights
FY22 Income Highlights FISCAL YEAR ENDED AUGUST 31, (In millions, except for per share data) 2022 2021 Net revenue $33,478 $29,285 U.S. GAAP operating income $1,393 $1,055 U.S. GAAP net income $996 $696 U.S. GAAP diluted earnings per share $6.90 $4.58 Core operating income (non-GAAP)1 $1,543 $1,241
Slide 17: Our Portfolio: Revenue by End-Markets
Our Portfolio Revenue by End-Markets DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY21 FY22 $ in billions FY21 FY22 Auto & Transportation $2.2 $3.1 Digital Print & Retail $2.3 $3.1 Healthcare & Packaging $4.5 $5.0 Industrial & Semi-Cap $3.4 $4.0 Connected Devices $4.5 $4.7 5G Wi
Slide 18: Strong Cash Flow & Disciplined Investment
Strong Cash Flow & Disciplined Investment ($ millions) $1,651 $1,600 $1,433 $1,400 $1,193 $1,257 $1,200 $1,000 $796 $841 $800 $787 $793 $600 $400 $200 $0 FY19 FY20 FY21 FY22 Cash Flow from Operations Net CapEx Net capex1 as a % of net revenue 3.1% 2.9% 2.7% 2.5% 1 See U.S. GAAP to non-GAAP reconcili
Slide 19: FY22 Net Capex
FY22 Net Capex FY22 Net Capex ($ millions) Fiscal Year Ended August 31, 2022 Acquisition of property, plant and equipment ($1,385) Proceeds and advances from sale of property, plant and equipment $544 Net Capex1 ($841) 1See U.S. GAAP to non-GAAP definitions and reconciliations located at https://inv
Slide 20: Consistent Shareholder Return
Consistent Shareholder Return CUMULATIVE SHAREHOLDER RETURN SHARE COUNT (millions) FY13 – FY22 Share Repurchases 220 Dividends 200 33% reduction 180 160 203 $3.6B 140 194 192 187 178 165 154 150 120 144 135 100 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 See U.S. GAAP to non-GAAP definitions a
Slide 21: Driving Consistent Cash Flows & Profitability
Driving Consistent Cash Flows & Profitability CORE OP INCOME & CORE MARGIN1 CORE EPS1 FREE CASH FLOW1 (In millions) $1,543 (In millions) $810 $7.65 $640 $1,241 $5.61 $503 4.6% $461 $877 $864 4.2% $768 $2.98 $247 $2.62 $2.90 3.5% 3.5% 3.2% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 F
Slide 22: High Technology. High Growth.
High Technology. High Growth. Secular Trends Driving Growth Across Multiple End-Markets ENERGY EV REVOLUTION CLOUD & 5G DIGITAL TRANSFORMATION INFRASTRUCTURE HEALTHCARE 22
Slide 23: Continued Mix Shift in Targeted Areas: DMS
Continued Mix Shift in Targeted Areas Revenue by End-Markets FY23E DMS REVENUE MIX $ in billions FY22 FY23E Y/Y1 Auto & Transportation $3.1 $4.0 29% Healthcare & Connected Packaging Devices 30% 25% Healthcare & Packaging $5.0 $5.3 6% Connected Devices $4.7 $4.3 (9%) $17.4B Mobility $3.9 $3.8 (3%) RE
Slide 24: Continued Mix Shift in Targeted Areas: EMS
Continued Mix Shift in Targeted Areas Revenue by End-Markets FY23E EMS REVENUE MIX $ in billions FY22 FY23E Y/Y1 Digital Print & Retail $3.1 $3.2 3% Networking & Storage 5G Wireless & 19% Industrial & Semi-Cap $4.0 $4.3 8% Cloud 37% 5G Wireless & Cloud $6.5 $6.3 (3%)2 $17.1B Networking & Storage $3.
Slide 25: Continued Mix Shift in Targeted Areas
Continued Mix Shift in Targeted Areas Revenue by End-Markets $ in billions FY22 FY23E Y/Y1 $ in billions FY22 FY23E Y/Y1 Auto & Transportation $3.1 $4.0 29% Digital Print & Retail $3.1 $3.2 3% Healthcare & Packaging $5.0 $5.3 6% Industrial & Semi-Cap $4.0 $4.3 8% Connected Devices $4.7 $4.3 (9%) 5G
Slide 26: Driving Margin Expansion
Continued Mix Shift in Targeted Areas Driving Margin Expansion Core Operating Income & Margin1 Core Operating Income ($ millions) Margin Drivers $1,640 $1,543 1. Growth in higher-margin end- $1,241 markets $877 $864 4.8% 2. Continued digitization and 4.6% 4.2% innovations of our factory network 3.5%
Slide 27: Net Capex: Disciplined Investment
Net Capex Disciplined Investment Net Capex1 Disciplined Investments ($ millions) Aligned with Profitable Growth $841 $875 1. Growth in secular end- $787 $796 $793 markets 3.1% 2. Innovation: 2.9% 2.7% • Factory digitization and 2.5% 2.5% automation • Engineering capabilities FY19 FY20 FY21 FY22 FY23
Slide 28: Solid Liquidity Profile
Solid Liquidity Profile Consistent Free Cash Flow Generation CORE EBITDA1 Free Cash Flow1 Drivers of Future ($ billions) ($ millions) Free Cash Flow $2.6 $900+ $2.4 $810 $2.1 1. Earnings expansion $640 $1.6 $1.6 2. Working capital efficiencies $503 $461 3. Disciplined investment FY19 FY20 FY21 FY22
Slide 29: Financial Flexibility
Financial Flexibility Solid Capital Structure ($ in millions) Financial Strength 3,000 1. Balance sheet debt of $2.9B, as 2,500 of August 31, 2022 2,000 2. Credit Agency Ratings/Outlook2 1,500 • Moody’s: Baa3 / Stable 1,000 • S&P: BBB- / Stable 500 • Fitch: BBB- / Positive - 2023 2024 2025 2026 2027
Slide 30: Capital Allocation Framework
Capital Allocation Framework $1 Billion Share Repurchase Authorization CASH FLOW FROM OPERATIONS NET CAPEX FREE CASH FLOW DEBT OPTIMIZATION SHARE REPURCHASES & M&A & DIVIDENDS ~ 20% ~ 80% VALUE CREATION FOR OUR SHAREHOLDERS 30
Slide 31: First Quarter FY23 Guidance
First Quarter FY23 Guidance Segment Revenue Guidance Q1 FY22 Q1 FY23E YoY Change ▪ Diversified Manufacturing Services $4.7B $4.8B Increase 2% ▪ Electronics Manufacturing Services $3.9B $4.5B Increase 15% Consolidated Guidance Q1 FY23E Net revenue $9.0 - $9.6 U.S. GAAP operating income $367M - $427M
Slide 32: Our Outlook: The Momentum Continues
Our Outlook The Momentum Continues CORE OP INCOME & CORE OP MARGIN1 CORE EPS1 FREE CASH FLOW1 (In millions) $1,640 (In millions) $900+ $1,543 $8.15 $810 $7.65 $1,241 $640 4.8% $5.61 4.6% $503 $877 $461 $864 4.2% $2.98 $2.90 3.5% 3.2% FY19 FY20 FY21 FY22 FY23E FY19 FY20 FY21 FY22 FY23E FY19 FY20 FY21
Slide 33: Business Update
BUSINESS UPDATE MARK MONDELLO CHAIRMAN AND CHIEF EXECUTIVE OFFICER 33
Slide 34: Our People
Our People Jabil’s Most Valued Differentiator 34
Slide 35: Construct and Pedigree
Jabil Construct and Pedigree OUR APPROACH OUR SOLUTIONS OUR PORTFOLIO OUR OUTLOOK 35
Slide 36: Our Approach: Diverse, Equitable and Inclusive Jabil
Our Approach A more Diverse, Equitable and Inclusive Jabil Each and every Jabil employee will be treated with dignity and respect, while always being their True Self. 36
Slide 37: Our Approach: ESG and Sustainability
Our Approach ESG and Sustainability 50% REDUCTION IN GREENHOUSE GAS EMISSIONS BY FY30 ACHIEVE 30% LANDFILL DIVERSION ESTABLISH WELL-BEING PROGRAMS AT ALL MANUFACTURING SITES GLOBAL REDUCTION OF ACQUIRED OR PURCHASED ONE MILLION WATER VOLUNTEER COMPREHENSIVE TRAINING HOURS IN CALENDAR ON MENTAL HEALT
Slide 38: One Million Volunteer Hours
Our Approach One Million Volunteer Hours 38
Slide 39: Our Solutions
Our Solutions Enabled by Structure, Investments, Customers Digital Print Industrial & 5G Automotive Connected Mobility Operations Cloud Healthcare Packaging & Retail Semi-cap Wireless & Transport Devices JABIL PLATFORM COLLABORATION EXECUTION COMMON & CONNECTED PROCESSES, DATA & INFRASTRUCTURE OBSES
Slide 40: Our Portfolio: Critical and Trusted Partner
Our Portfolio Critical and Trusted Partner Digital Print Mobility & Retail Industrial & Semi-Cap Healthcare & Packaging REVENUE F Y 2 3 E 5G Wireless & Cloud Connected Devices Automotive & Networking & Transportation Storage 40
Slide 41: Our Portfolio: Intentionally Diversified and Evermore Resilient
Our Portfolio Intentionally Diversified and Evermore Resilient 5-YR 5-YR $ in billions FY18 FY23E CAGR1 $ in billions FY18 FY23E CAGR1 Auto & Transportation $1.4 $4.0 23% Digital Print & Retail $2.1 $3.2 9% Healthcare & Packaging $2.4 $5.3 17% Industrial & Semi-Cap $2.8 $4.3 9% Connected Devices $4.
Slide 42: Our Outlook: Credible FY23 Financial Plan
Our Outlook Credible FY23 Financial Plan NET REVENUE CORE OP MARGIN CORE EPS FREE CASH FLOW $34.5 $8.15 $900+ BILLION 4.8% MILLION MANAGEMENT’S OUTLOOK FOR FY23 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/ 42
Slide 43: Our Outlook: What We're Doing is Working
Our Outlook What We’re Doing is Working REVENUE CORE OP INCOME1 CORE EPS1 (In billions) (In millions) ~10% ~15% ~25% CAGR CAGR CAGR $33.5 $34.5 $1,543 $1,640 $29.3 $7.65 $8.15 $27.3 $1,241 $25.3 $5.61 $22.1 $877 $864 $768 $2.62 $2.98 $2.90 FY18 FY19 FY20 FY21 FY22 FY23E FY18 FY19 FY20 FY21 FY22 FY23
Slide 44: Our Purpose
Our Purpose We Strive to Make a Difference 44
Slide 45: Our Path Forward
Our Path Forward Trust and Belief in our Team • Our Unique combination of Approach, Structure and Experience • Our Confidence in our ability to Execute, combined with our Engineering Expertise • Our Financial Outlook being grounded in Rationale Assumptions • Our Commitment to returning Capital to Sh
Slide 46: Thank You
JABIL vase eerren
Slide 47: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations
Slide 48: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (in millions, except for per share data) (Unaudited) Three Months Ended Fiscal Year Ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Operating income (U.S. GAAP) $ 409 $ 265 $ 1,393 $ 1,0