Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Bernstein's 40th Annual Strategic Decisions Conference (May 2024)

48 slides from Jacobs Solutions's conference presentation, May 30, 2024

1. Slide 1: Jacobs Investor Presentation

   Jacobs Investor Presentation May 2024

2. Slide 2: Disclaimer

   Disclaimer Certain statements Forward-Looking contained Statement 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 Disclaimer not directly relate to a

3. Slide 3: Jacobs today

   Portfolio Overview FY23 Jacobs today By Sector1, 2 By Region2 ▪ Workforce: ~60,000 ▪ Currently operates across four reporting segments that provide a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sectors: – Peop

4. Slide 4: Transformation to less volatile and higher value services and solutions

   Transformation to less volatile and higher value services and solutions 1 1 FY14 FY23 FY25E $12.7B $16.4B Standalone 2 + Adj EBITDA Margins At least 300 bps of margin expansion expected post CMS separation 2015-2016 2017-2023 Today & future Assess and Focus De-risk and Shift to Higher Value Services

5. Slide 5: People & Places Solutions – Infrastructure & sustainability leader

   People & Places Solutions – Infrastructure & sustainability leader Approx. revenue by sector (FY 2023) Business Breakdown FY’23 Business breakdown Gross Revenue FY’22 revenue $9,554 million Adj. Net Revenue* $6,567 million (% of Total Adj. Net Revenue) (49%) $8,570 million Revenue (% of Total Net Re

6. Slide 6: P&PS playing in key sectors aligned to critical infrastructure and sustainability

   P&PS playing in key sectors aligned to critical infrastructure and sustainability Transportation Water Cities & Places Energy & Environmental Health and Life Sciences Advanced Manufacturing ▪ Market leading position in ▪ Unique OneWater end-to-end ▪ Integrating data, technology, ▪ Responding to chal

7. Slide 7: Jacobs holds leading positions

   Jacobs holds leading positions Overall Infrastructure Health & Life Sciences №1 Top 500 in Design Firms (2024) №1 Wastewater Treatment №1 Pharmaceuticals №1 Top 100 Pure Designers (2024) №1 Sanitary & Storm Sewers №1 Healthcare №1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste (2024) Pro

8. Slide 8: PA Consulting – Differentiated growth through ingenuity

   PA Consulting – Differentiated growth through ingenuity Approx. revenue by sector (FY 2023) Business breakdown FY’23 $1,158 million Revenue (% of Total Adj. Net Revenue) (9%) US / International 12% / 88% (76% UK) Public / Private 52% / 48% Reimbursable / Fixed Price Services 47% / 53% % Operating Pr

9. Slide 9: Divergent Solutions – Innovative data and digital solutions

   Divergent Solutions – Innovative data and digital solutions Approx. revenue1 by sector (FY 2023) Business breakdown FY’23 Revenue $947 million Adj. Net Revenue* $882 million (% of Total Adj. Net Revenue*) (7%) US / International 97% / 3% Public / Private 91% / 9% Reimbursable / Fixed Price Services

10. Slide 10: Critical Mission Solutions – Poised to thrive independently

    Critical Mission Solutions – Poised to thrive independently Approx. revenue by sector (FY 2023) Business breakdown FY’23 $4,693 million Revenue (% of Total Adj. Net Revenue) (35%) US / International 76% / 24% (Auto test and diagnostics) (Telecom) Public / Private 82% / 18% National Security Reimburs

11. Slide 11: Creating a New Government Services Leader

    Creating a New Government Services Leader Jacobs To Spin-off and Merge Its CMS and C&I Businesses with Amentum

12. Slide 12: Transaction rationale

    Transaction rationale ▪ Jacobs to spin-off and merge its CMS business with Amentum, creating a new independent, publicly- traded company ▪ Transaction perimeter includes Jacobs CMS segment plus the closely related Cyber and Intelligence unit (“C&I”) from Divergent Solutions (“DVS”) ▪ Culmination of

13. Slide 13: Transaction summary

    Transaction summary ▪ Reverse Morris Trust that is intended to be tax-free to shareholders for U.S. federal income tax purposes ▪ Jacobs and Jacobs shareholders to own up to 63% of combined company • Jacobs shareholders: 51% - 55% • Jacobs company retained stake: 7.5% - 8% depending on the achieveme

14. Slide 14: Combination with Amentum

    Combination with Amentum Transaction Structure Merger Partner / Combined Company ▪ ~$7.9B revenue / ~8% Adj. EBITDA margin business ▪ >40% focused on high-growth, high margin intel and science and technology sectors Amentum ▪ Strong momentum in backlog, revenue and profit growth ▪ <$4B current net d

15. Slide 15: FY2023 Separation Roadmap

    FY2023 Separation Roadmap FY2023 CMS/C&I FY2023 Actual Separation Adjusted ▪ Separation of CMS/C&I for FY23 would Adj. Net Revenue* $13,301 ($5,438) $7,863 result in 150 bps margin uplift ▪ Impact before any further benefit from Cost Optimization Plan Adj. EBITDA* 1,436 (465) 971 Margin % 10.8% 8.6%

16. Slide 16: Fiscal 2024 Q2 Results

    Fiscal 2024 Q2 Results ©Jacobs 2024

17. Slide 17: Strategy: Boldly Moving Forward

    Q2 FY 24 Segment Adj. Net Revenue Strategy: Boldly Moving Forward ▪ Culture of inclusion, innovation and inspiration creates competitive advantage ▪ Diverse sector exposure with recurring revenue provides substantial visibility ▪ Climate Response, Data Solutions and Consulting & Advisory key acceler

18. Slide 18: Fiscal 2024 Q2 results

    Fiscal 2024 Q2 results Revenue up 5% y/y, adjusted net revenue increased 3% y/y GAAP Operating Profit (OP) of $281M and OP Margin of 6.6% Adj. OP of $392M up 10%; Adj. OP Margin (% of Adj. Net Revenue) of 11.3% GAAP Net Earnings from Continuing Operations of $163M GAAP EPS from Continuing Operations

19. Slide 19: Segment financials

    Segment financials $’s in millions Q2 2023 Q2 2024 Y/Y Y/Y CC People & Places Solutions Operating Profit 232 268 15.3% 14.5% as a % of adj. net revenue 14.0% 15.3% 128 bps Critical Mission Solutions Operating Profit 94 104 10.3% 8.9% as a % of revenue 7.9% 8.4% 54 bps PA Consulting Operating Profit

20. Slide 20: Balance sheet and cash flow

    Balance sheet and cash flow Strong cash flow generation ▪ Q2 cash flow from operations (CFFO) $(43)M and FCF of $(71)M – Q2 impacted by return to more normalized DSO numbers – 1H remains at approximately 100% reported FCF conversion – Continue to expect >100% FY24 reported FCF conversion1 ▪ Balance

21. Slide 21: Cost Optimization Plan and Outlook

    Cost Optimization Plan and Outlook ©Jacobs 2024

22. Slide 22: Cost Optimization Plan

    Cost Optimization Plan Driving >300 bps in margin expansion Over 300 bps of expected Standalone Jacobs Adj. EBITDA Margin Adj. EBITDA Margin expansion achieved 13.8%+ through: 10.8% ▪ Separation of lower margin business ▪ $140M of cost optimization initiatives ▪ Operating leverage 1 Total Cost Optim

23. Slide 23: Outlook & Summary

    Outlook & Summary Reiterating Fiscal 2024 Outlook Fiscal Year 2024 Assumptions FY23 FY24E1 Y/Y Growth (at mid-point) ▪ Fully diluted average share count: ~127M FY Adjusted EBITDA $1.44B $1.540B - $1.585B 9% ▪ FY effective tax rate: 22% FY Adjusted EPS $7.20 $7.80 - $8.10 10% ▪ Q3-Q4 effective tax ra

24. Slide 24: Appendix

    Appendix

25. Slide 25: Debt & interest overview

    Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of March 29, 2024 Tranche 12/29 Debt Q1 ’24 Rate Q2 ’24 Rate Revolver ($2.25B) $135M 6.7% 6.7% USD Term Loans $179M 6.7% 6.7% GBP Term Loans $810M 6.5% 6.5% Total Floating $1,124M 6.5% 6.5% Sustainability-Linked Bond $500M 5.0%

26. Slide 26: Selected financial data

    Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions (unaudited) 2023 2023 2023 2023 2023 2024 2024 People and Places Solutions Backlog 17,243 17,563 17,498 17,345 17,345 17,857 17,929 Revenue 2,227 2,345 2,470 2,512 9,554 2,470 2,522 Adj. Net Revenue 1,517 $1,661 1,687 1,703 6,567 1,644 1,7

27. Slide 27: Delivering sustainable solutions

    Delivering sustainable solutions Amtrak's Frederick Douglass Tunnel Miami-Dade County Water Los Angeles World Airports Alkimos Seawater Desalination Plant Baltimore, Md., U.S. and Sewer Department LA, Cal., U.S Perth, WA, Australia Miami, Fla., U.S. Modernizing America's busiest passenger Enhancing

28. Slide 28: Environmental, Social & Governance (ESG) at Jacobs

    Environmental, Social & Governance (ESG) at Jacobs Aligned with the United Nations Sustainable Development Goals, Jacobs is focused on creating positive social and economic impact while protecting our environment and improving resilience. ▪ Since 2019 we have voluntarily reported on a wide range of

29. Slide 29: Three needle-moving accelerators catalyze additional growth across all markets

    Three needle-moving accelerators catalyze additional growth across all markets 29 ©Jacobs 2024

30. Slide 30: 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. 30 ©Jacobs 2024

31. Slide 31: 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

32. Slide 32: 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. Free cash flow (FCF) is calculated as net cash provided by operating activities as

33. Slide 33: Reconciliation of Earnings from Continuing Operations Before Taxes

    Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Before Taxes (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Earnings from Continuing Operations Before Taxes $ 241,585 $

34. Slide 34: Reconciliation of Operating Profit to Adjusted Operating Profit

    Reconciliation of Operating Profit to Adjusted Operating Profit (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Operating Profit $ 280,988 $ 289,863 $ 485,052 $ 527,668 Restructuring, Transaction and Other Charges (1) Focus 2023 Transfor

35. Slide 35: Reconciliation of Net Earnings to Adjusted Net Earnings

    Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Net Earnings Attributable to Jaco

36. Slide 36: Reconciliation of Income Tax Expense to Adjusted Income Tax Expense

    Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing Operations (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Income Tax Benefit (Expense) from Continuing Operations $ (67,283)

37. Slide 37: Reconciliation of Diluted EPS to Adjusted Diluted EPS

    Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Diluted Net Earnings from Continuing Operat

38. Slide 38: Reconciliation of Net Earnings to Adjusted EBITDA

    Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands) Twelve Months Three Months Ended Six Months Ended Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Net Earnings Attributable to Jacobs from Continuin

39. Slide 39: Reconciliation of Noncontrolling Interests

    Reconciliation of Noncontrolling Interests from Continuing Operations to Adjusted Noncontrolling Interests from Continuing Operations (in thousands) Twelve Months Three Months Ended Six Months Ended Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Noncontrolling I

40. Slide 40: Reconciliation of Miscellaneous Expense

    Reconciliation of Miscellaneous Expense from Continuing Operations to Adjusted Miscellaneous Expense from Continuing Operations (in thousands) Twelve Months Three Months Ended Six Months Ended Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Miscellaneous Expense

41. Slide 41: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs

    Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs Three Months Ended March 29, March 31, (in thousands) 2024 2023 Other Corporate Expenses $ (117,313) $ (107,623) Amortization of intangibles 52,644 50,475 Other 5,240 (3,164) Adjusted Unallocated Corporate Costs $ (58

42. Slide 42: Reconciliation of Free Cash Flow

    Reconciliation of Free Cash Flow (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Net cash (used for) provided by operating activities $ (42,823) $ 132,041 $ 375,538 $ 434,339 Additions to property and equipment (27,802) (35,202) (45,108)

43. Slide 43: Reconciliation of Jacobs Constant Currency Adjusted Net Revenue

    Reconciliation of Jacobs Constant Currency Adjusted Net Revenue $’s in millions Net Revenue impact of Constant Currency Consolidated Line of People & Places Critical Mission PA Consulting Divergent Solutions Business Solutions Solutions Q2'24 Actual Revenue $3,476 $1,755 $1,229 $294 $198 Currency Im

44. Slide 44: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit

    Reconciliation of Jacobs Constant Currency Adjusted Operating Profit $’s in millions Adj. OP impact of Constant Currency Adj. Unalloc. Corp. Costs impact of Constant Currency Consolidated People & Critical PA Divergent Line of Places Mission Consulting Solutions Corporate Functions Business Solution

45. Slide 45: Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment

    Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment For the Three Months Ended For the Years Ended For the Three Months Ended For the Years Ended September September September September September September 30, September 29, September Unaudited 29, 2023 30, 2022 29, 2023 30, 2022 29, 202

46. Slide 46: Reconciliation of US GAAP OP to Adj. EBITDA

    Reconciliation of US GAAP OP to Adj. EBITDA For the year ended September 29, 2023 ($ in millions) (a) (b) (c) (d) (e) = (b) + (c) + (d) (f) = (a) - (e) Total Jacobs Total CMS Total DVS DVS RemainCo CMS/C&I RemainCo GAAP OP from continuing Ops 1,075 378 82 (13) 447 629 Add-back: Restructuring, Transa

47. Slide 47: Reconciliation of US GAAP Revenue to Adjusted Net Revenue

    Reconciliation of US GAAP Revenue to Adjusted Net Revenue For the year ended September 29, 2023 ($ in thousands) (a) (b) (c) (d) (e) = (b) + (c) + (d) (f) = (a) - (e) Total Jacobs Total CMS Total DVS DVS RemainCo CMS/C&I RemainCo Revenues from External Customers 16,352 4,693 947 (140) 5,500 10,852 P

48. Slide 48: Challenging today.

    | Challenging today. Jacobs wars. in X fa

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