Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Jefferies Industrials Conference 2023
43 slides from Jacobs Solutions's conference presentation, Sep 6, 2023
Slide 1: Jacobs Investor Presentation
Jacobs Investor Presentation September 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures and Operating Metrics Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation To supplement the financial results presente
Slide 3: Jacobs today
Portfolio Overview FY22 Jacobs today By Sector1, 2 Advanced By Region2 Manufacturing 7% APAC & Other Workforce: ~60,000 9% Cities & Places Currently operates across four reporting segments that provide 10% Infrastructure UK & a full spectrum of professional services including consulting, 35% Eur
Slide 4: Transformation to less volatile and higher value services and solutions
Transformation to less volatile and higher value services and solutions Advanced Manufacturing National Government 7% 18% Cities & Places Infrastructure 10% 35% Oil, Gas & Chemicals 47% Space Infrastructure 5% 12% 1 1,2 2014 Health & Life 2022 $12.7B Sciences $14.9B 6% Buildings 6% PharmaBio Energy
Slide 5: Three needle-moving accelerators catalyze additional growth across all markets
Three needle-moving accelerators catalyze additional growth across all markets Infrastructure ▪ National Security ▪ Advanced Manufacturing ▪ Health & Life Sciences ▪ Energy & Environment ▪ Cities & Places ▪ Space 5 ©Jacobs 2023
Slide 6: Jacobs holds leading positions
Jacobs holds leading positions Overall Infrastructure Health & Life Sciences № 1 Top 500 in Design Firms №1 Wastewater Treatment №1 Pharmaceuticals № 1 Top 100 Pure Designers №1 Sanitary & Storm Sewers №1 Health Care № 1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste Professional Service
Slide 7: 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 7 © Jacobs 2023
Slide 8: People & Places Solutions – Infrastructure & sustainability spend
People & Places Solutions – Infrastructure & sustainability spend Approx. revenue1 by end market (FY 2022) Business Breakdown FY’22 Advanced Manufacturing 10% Business breakdown Gross Revenue FY’22 revenue $8,535 million (Semiconductors and Data Centers) Adj. Net Revenue* $6,072 million (% of Total
Slide 9: 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 10: PA Consulting – Differentiated growth through ingenuity
PA Consulting – Differentiated growth through ingenuity Approx. revenue1 by end market (FY 2022) Business breakdown FY’22 Transport $1,119 million Revenue (% of Total Adj. Net Revenue*) 9% (9%) Health & Life US / International 13% / 87% (~77% UK) Energy & Utilities Sciences 8% 22% Public / Private 4
Slide 11: Divergent Solutions – Innovative data and digital solutions
Divergent Solutions – Innovative data and digital solutions Approx. revenue1 by end market (FY 2022) Business breakdown FY’22 Revenue $892 million Commercial Adj. Net Revenue* $862 million 5% (% of Total Adj. Net Revenue*) (7%) Space Infrastructure 14% 4% Energy & US / International 98% / 2% Environ
Slide 12: Critical Mission Solutions – Poised to thrive independently
Critical Mission Solutions – Poised to thrive independently Approx. revenue1 by end market (FY 2022) Business breakdown FY’22 Infrastructure 5% $4,377 million (Telecom) Advanced Manufacturing 2% (Auto Revenue1 (% of Total Adj. Net Revenue*) test & diagnostics) (35%) US / International 82% / 18% Nati
Slide 13: Fiscal 2023 Q3 Results
Fiscal 2023 Q3 Results
Slide 14: 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 15: 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 16: 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 17: 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 18: CMS Separation Overview
CMS Separation Overview
Slide 19: Critical Mission Solutions spin-off overview
Critical Mission Solutions spin-off overview On May 9, 2023, Jacobs announced its intention to spin-off its Critical Mission Solutions business (“the Spin-off”) The spin-off will create a streamlined higher-growth, higher-margin business portfolio focused on critical infrastructure and sustainab
Slide 20: Separation details
Separation details Perimeter Critical Mission Solutions segment Spin-Off of Critical Mission Solutions to Jacobs shareholders Transaction Structure Intended to be tax-free to Jacobs shareholders for U.S. federal income tax purposes Committed to maintaining an investment grade profile for Jac
Slide 21: Establishing two leading companies
Establishing two leading companies Jacobs (excluding CMS) Critical Mission Solutions Premier Technology-Enabled Solutions Provider Leading Pure-Play Government Services Provider Focused on Critical Infrastructure and Sustainability ~$10.5B ~12% ~$4.4B ~8% FY22 Revenue FY22 Adj. Op. Margin1 FY22 Reve
Slide 22: Jacobs will remain diversified and focused on profitable markets
Jacobs will remain diversified and focused on profitable markets Adj. Net Revenue1 Segment Adjusted Operating Profit2 Backlog Profit Jacobs Today $12.4B $1.3B $27.9B 2022 2022 2022 Excluding CMS $8.1B $1.0B $20.2B 2022 2022 2022 1 Reflects Adj. Net Revenue, defined as Revenue minus pass-through Reve
Slide 23: Appendix
_ Appendix
Slide 24: 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 25: 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 26: Delivering sustainable solutions
Delivering sustainable solutions Delivering work aligned with the Expanding sustainable electric Supporting the global 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. Develo
Slide 27: 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 28: 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. 28
Slide 29: 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 30: 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 31: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 31
Slide 32: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 32
Slide 33: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 33
Slide 34: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 34
Slide 35: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 35
Slide 36: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 36
Slide 37: 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 37
Slide 38: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 38
Slide 39: Reconciliation of Jacobs Constant Currency Adj. Net Revenue
Reconciliation of Jacobs Constant Currency Adj. Net Revenue 39
Slide 40: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit 40
Slide 41: Reconciliation to adjusted EBITDA, adjusted EBITDA margin and adj. net revenue
Reconciliation to adjusted EBITDA, adjusted EBITDA margin and adj. net revenue 41 ©Jacobs 2023
Slide 42: Selected financial data
Selected financial data FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 LTM $’s in millions 2020 2021 20211 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2Q23 Critical Mission Solutions Backlog 9,104 9,683 9,779 9,565 10,589 10,589 7,524 7,509 7,219 7,622 7,622 7,632 8,136 8,097 8,097 Revenue 4,9
Slide 43: Reconciliation to adjusted operating profit and margin
Reconciliation to adjusted operating profit and margin 43 ©Jacobs 2023
Jacobs Solutions — Jefferies Industrials Conference 2023 on 6ix