Slide 1: Fiscal 4th Quarter Earnings Conference Call
Fiscal 4th Quarter Earnings Conference Call November 25, 2019
Slide 2: See how our discoveries today create a lasting impact for tomorrow
See how our discoveries today create a lasting impact for tomorrow. Video will play prior to call beginning. Re-watch video here.
Slide 3: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Pro Forma Figures Certain statements contained in this presentation constitute forward- To supplement the financial results presented in accordance with During this presentation, we may discuss comparisons of current looking
Slide 4: Today's agenda
Today’s agenda Business Review ▪ Financial and Strategic Highlights ▪ Progressing our Culture ▪ Driving Innovation ▪ Line of Business Review Financials Review ▪ Q4 and FY19 Results ▪ Segment Financials ▪ Acquisition and Divestiture Update ▪ Balance Sheet and Cash Flow Outlook and Summary 4
Slide 5: Becoming "A Company Like No Other"
Becoming “A Company Like No Other” Our Strategy Transformed Portfolio Positioned for Sustained Growth ▪ Diversified multi-decade secular trends underpin long-term growth ▪ Strategy strengthened by new brand embracing innovation as connective foundation ▪ Revenue synergies: CH2M accelerating; KeyW ma
Slide 6: Challenging today. Reinventing tomorrow.
Arrow pointing up and to the right signaling: Impact on the future Infinite potential and optimism Forward advancement through innovative and creative solutions 2 Reinventing tomorrow. Challenging today. 1 Upward arc symbolizing: Agility to change course Boldness to go against convention Courage to
Slide 7: To create a more connected, sustainable world.
To create a more connected, sustainable world. We do things right. We challenge the accepted. We aim higher. We live inclusion. 7
Slide 8: Jacobs' domain knowledge drives data gravity for IT/OT convergence
Jacobs’ domain knowledge drives data gravity for IT/OT convergence Solutions enabled by digital capability, informed by domain expertise Applied Automated Internet Predictive Cyber- Geospatial security Design of Things Analytics Science 8
Slide 9: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot Unique Delivery Model (TTM including KeyW) U.S./International 89% / 11% ▪ One of the largest diversified government services providers Government ~86% ▪ Leveraging strong technical expertise, localized delivery model and efficient cost s
Slide 10: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (TTM) U.S./International 70% / 30% Growth Underpinned by Multiple Secular Trends Public / Private Sector 59% / 41% ▪ Climate change resiliency driving long-term opportunities Reimbursable and ~91% ▪ Urbanization creating infrastructure dev
Slide 11: Fiscal Q4 2019 results
Fiscal Q4 2019 results Revenue increased 13% y/y and Pro Forma Net Revenue increased 10% y/y GAAP Operating Profit of $99M and Operating Profit Margin of 2.9% Adj. Operating Profit (OP) of $253M and Net Revenue Adj. OP Margin of 9.4% GAAP Net Earnings of $22 million and EPS from Continuing Operation
Slide 12: Fiscal 2019 results
Fiscal 2019 results Revenue increased 20% y/y and PF Net Revenue increased 11% y/y GAAP Operating Profit of $405M and Operating Profit Margin of 3.2% Adj. Operating Profit (OP) of $893M and Net Adj. OP Margin of 8.8% GAAP Net Earnings of $291 million and EPS from Continuing Operations of $2.09 impac
Slide 13: Segment financials
Segment financials $’s in millions Q4 Q4 Fiscal Fiscal 20182 2019 20182,3 2019 Critical Mission Solutions Operating Profit 77 88 264 310 as a % of revenue 7.2% 6.7% 6.9% 6.8% People & Places Solutions Operating Profit 167 199 629 714 as a % of net revenue 13.1% 14.3% 12.2% 12.7% Adjusted Unallocated
Slide 14: M&A and divestiture update
M&A and divestiture update ECR Update ▪ Incurred $153M of over $200M transaction, separation and restructuring costs to date ▪ On track to complete separation and restructuring costs by mid CY20 KeyW Acquisition at Year End ▪ Achieved $11M of $15M in run-rate synergies ▪ Incurred $17M of estimated $
Slide 15: Balance sheet and cash flow
Balance sheet and cash flow Healthy Underlying Free Cash Flow Generation ▪ Negative free cash flow in Q4 impacted primarily by ECR cash taxes of $390M ▪ Underlying FY19 free cash flow conversion to adjusted net income in-line with Q4 Leverage Metrics expectations over course of year versus slow Q1 s
Slide 16: Focused on delivering superior Shareholder Value
Focused on delivering superior Shareholder Value ▪ Inspiring a high-performance culture ▪ Capturing growth opportunities through innovation ▪ Disciplined capital allocation that drives value creation FY20 Financial Outlook Initiating adj. EBITDA1 of $1,050M to $1,150M Initiating adj. EPS1 of $5.30 -
Slide 17: se rs xa Cr
se rs xa Cr
Slide 18: Jacobs: Delivering innovative solutions & disciplined execution
Jacobs: Delivering innovative solutions & disciplined execution FY19 ($ in billions) Reimbursable and Net Revenue Lower Risk Fixed Public/Private Pro forma for KeyW Gross Backlog U.S./Int’l Mix Talent Base Price Services Sector 73%/27% ~52,000 94% 69%/31% $8.5 • Increasing portfolio mix in high valu
Slide 19: Recast consolidated financials
Recast consolidated financials PF Q1 $’s in millions Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 20181 Critical Mission Solutions Backlog 6,641 7,174 7,148 7,130 7,130 7,158 7,285 8,393 8,460 8,460 Revenue 842 924 1,021 1,069 3,856 1,035 1,060 1,156 1,300 4,551 Operating
Slide 20: Recast consolidated financials
Recast consolidated financials PF Q1 $’s in millions Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 20181 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,404 22,569 22,569 Revenue 2,746 2,870 2,934 2,992 11,541 3,084 3,092 3,170 3,393 12,738 Net Revenue 2,059 2,2
Slide 21: Other operational metrics from continuing operations
Other operational metrics from continuing operations $’s in thousands Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Depreciation (pre-tax) 25,6071 26,764 24,423 21,567 98,3611 18,211 23,491 25,851 20,508 88,061 Amortization of 11,547 18,205 19,299 18,352 67,403 18,6
Slide 22: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, 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 connect
Slide 23: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, 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 connect
Slide 24: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, 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 connect
Slide 25: Non GAAP financial measures
Non GAAP financial measures The following tables reconcile the U.S. GAAP values of net revenue, 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 connect
Slide 26: Reconciliation of net earnings from continuing operations to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA 26
Slide 27: Non-GAAP financial measures (cont'd)
Non-GAAP financial measures (cont’d) 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 operations, adjusted