Slide 1: Jacobs Fiscal 2023 Third Quarter Results
Jacobs Fiscal 2023 Third Quarter Results August 8, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to a
Slide 3: Today's agenda
Today’s agenda ▪ Overview − Performance overview − Strategy review ▪ Financial review − Q3 Fiscal 2023 results − Q3 Segment review − Balance sheet and cash flow ▪ Outlook & Summary ▪ Q&A 3
Slide 4: World-class global talent pool
World-class global talent pool 4 Delivering operational excellence to optimize and accelerate growth
Slide 5: Well positioned for long-term growth
Well positioned for long-term growth Transportation Legislative drivers Water & Environment Supply Chain and Energy Transition = Double Digit Pipeline Growth Technology Investments Advanced Facilities ▪ Semiconductors ▪ Life Sciences ▪ Electric Vehicles 5 © Jacobs 2023
Slide 6: Strategy: Boldly Moving Forward; Track record of execution
Q3 2023 Segment Adj. Net Revenue Strategy: Boldly Moving Forward PA Consulting, 8% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage Divergent ▪ Diverse sector exposure with recurring revenue provides substantial visibility People & Places Solutions, 6% ▪ Climate Respo
Slide 7: P&PS playing in critical sectors aligned to infrastructure and sustainability
P&PS playing in critical sectors aligned to infrastructure and sustainability Transportation Water Cities & Places Energy & Environmental Health and Life Sciences Advanced Manufacturing ▪ Market leading position in ▪ Unique OneWater end-to- ▪ Integrating data, ▪ Responding to challenges ▪ Largest pr
Slide 8: Jacobs holds leading positions
Jacobs holds leading positions Overall Infrastructure Health & Life Sciences № 1 Top 500 in Design Firms (2023) № 1 Bridges № 1 Pharmaceuticals № 1 Top 100 Pure Designers (2023) № 1 Mass Transit & Rail № 1 Health Care № 1 Top 20 Firms in Combined Design and CM-PM № 1 Telecommunications Professional
Slide 9: Fiscal 2023 Q3 results
Fiscal 2023 Q3 results Revenue up 9.4% y/y, adjusted net revenue increased 7.5% y/y and up 8% in constant currency GAAP Operating Profit (OP) of $270M and OP Margin of 6.4% Adj. OP of $361M up 10.2% and up 10.7% in constant currency; Adj. OP Margin (% of Adj. Net Revenue) of 10.7% GAAP Net Earnings
Slide 10: Segment financials
Segment financials $’s in millions Q3 2022 Q3 2023 Y/Y Y/Y CC2 People & Places Solutions Operating Profit 214 243 13.4% 15.0% as a % of adj. net revenue1 13.8% 14.4% 58 bps Critical Mission Solutions Operating Profit 88 99 12.2% 12.5% as a % of revenue 8.0% 8.3% 36 bps PA Consulting Operating Profit
Slide 11: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q3 cash flow from operations (CFFO) $321M and FCF1 of $290M, resulting in YTD 127% FCF conversion of Net Income ▪ Expect ~100% underlying FY23 cash conversion to adjusted net income ▪ Balance sheet strength affords prudent capital deployment
Slide 12: 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. 12
Slide 13: Outlook & Summary
Outlook & Summary Reiterating Fiscal 2023 Outlook ▪ Diverse portfolio of recurring revenue provides opportunity to grow under multiple economic scenarios with upside from Climate Response, Data Solutions and Consulting & Advisory accelerators. ▪ The company reiterates its outlook for fiscal 2023 adj
Slide 14: CFO transition effective on August 14, 2023
CFO transition effective on August 14, 2023 Claudia Jaramillo Kevin Berryman EVP, Chief Financial Officer Special Advisor to the CEO 14 ©Jacobs 2021
Slide 15: Appendix
Appendix
Slide 16: Debt & interest overview
Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of June 30, 2023 Tranche 6/30 Debt Q2 ’23 Rate Q3 ’23 Rate Revolver ($2.25B) $675M 6.3% 6.5% $37.1 $33.0 $36.0 USD Term Loans $286M 6.3% 6.5% $31.1 GBP Term Loans $833M 5.6% 6.2% $21.6 $21.6 $17.9 Total Floating $1,794M 6.0%
Slide 17: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 $’s in millions (unaudited) 2022 2022 2022 2022 2022 2023 2023 2023 People and Places Solutions Backlog 16,930 16,950 17,527 17,014 17,014 17,243 17,562 17,498 Revenue 1,921 2,163 2,223 2,228 8,535 2,227 2,345 2,470 Adj. Net Revenue1 1,419 1,564 1,549
Slide 18: Delivering sustainable solutions
Delivering sustainable solutions Delivering work aligned with the Expanding sustainable electric Supporting the U.K. energy Increasing mental health support First full-scale wave energy test United Nations Sustainable vehicle capacity in the U.S. transition in Australia facility in the U.S. Developm
Slide 19: Environmental, Social and Governance summary
▪ Climate Action Plan 2022 Environmental, Social and Governance summary ▪ ▪ FY22 ESG Disclosures PlanBeyond 2.0 ▪ Climate Risk Assessment FY22 A sustainable business model aligning purpose and vision with both growth and ▪ Approved Science-Based Targets positive impact: ▪ 2022 CDP Submission ▪ Fully
Slide 20: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics In this presentation, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Adjusted Net revenue
Slide 21: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Adjusted EBITDA is calculated by adding income tax expense, depreciation expense a
Slide 22: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 22
Slide 23: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 23
Slide 24: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 24
Slide 25: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 25
Slide 26: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 26
Slide 27: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 27
Slide 28: Reconciliation of net earnings to adjusted EBITDA and free cash flow
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA and free cash flow 28
Slide 29: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 29
Slide 30: Reconciliation of Jacobs Constant Currency Adj. Net Revenue
Reconciliation of Jacobs Constant Currency Adj. Net Revenue 30
Slide 31: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit 31