Slide 1: Fiscal Year 2017 – 2nd Quarter Earnings Conference Call
Fiscal Year 2017 – 2nd Quarter Earnings Conference Call May 9, 2017 www.jacobs.com | worldwide
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer Statements included in this presentation that are not based on historical fact are forward‐looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial and economic data,
Slide 3: Agenda
Agenda • Business Review – Q2 Highlights – Line of Business Markets • Financials Review – Q2 Results – Restructuring & Investments – Capital Allocation • Summary & FY17 Outlook 3
Slide 4: FY17Q2 Highlights: Strong Operational Execution; Focused on Profitable Growth
FY17Q2 Highlights Strong Operational Execution; Focused on Profitable Growth • Safety Milestone - 10 year Anniversary of Beyond Zero • Strong Execution Against New Strategic Agenda – Continued Realignment of Revenue Portfolio – Significant Gross Margin Improvement – Continued SG&A Cost Reduction – O
Slide 5: Backlog Highest Professional Services Backlog in Quarters
Backlog Highest Professional Services Backlog in 8 Quarters Field Services Backlog ($ Billion) Professional Services Backlog ($ Billion) 18.2 18.1 18.5 5.5 5.3 5.9 6.1 6.9 12.2 12.4 2.4 11.4 5.3 Aerospace & Technology Buildings & Infrastructure Petroleum & Chemicals Industrial Industrial & Chemicals
Slide 6: Aerospace & Technology Driving Strong Backlog Growth
Aerospace & Technology Driving Strong Backlog Growth; Large Pipeline of Opportunities • Increasing Sales; Steady Markets – Strong sales quarter with a continuing shift to higher margin projects – Significant improvement in backlog vs. Q1 and vs. prior year – Over $400M in contract wins not yet backl
Slide 7: Buildings & Infrastructure Leveraging Global Capabilities
Buildings & Infrastructure Leveraging Global Capabilities; Profitable Growth Continues • Buildings – Steady – Key global wins due to positive movement in a variety of sub-sectors – Growth in program and construction management services • Infrastructure – Strong – Global rail and transit spending con
Slide 8: Industrial Revenue Growth Projected for 2H
Industrial Revenue Growth Projected for 2H • Life Sciences – Strong – Innovation driving client investments – Effectively executing growth strategy • Consumer Goods and Manufacturing – Steady – Strong position to capitalize on large U.S. pulp and paper investments – Growth in sustaining services and
Slide 9: Petroleum & Chemicals Backlog Stabilizing as Downstream Growth Offsets Upstream Weakness
Petroleum & Chemicals Backlog Stabilizing as Downstream Growth Offsets Upstream Weakness • Upstream – Continued Near-term Uncertainty – Oil prices remain weak despite efforts to rebalance supplies – Some producers divesting Canadian assets – Emerging opportunities in pipeline & midstream infrastruct
Slide 10: FY17Q2 Financial Metrics
FY17Q2 Financial Metrics • Revenues of $2.3B; GAAP EPS of $0.41 (Adj. EPS1 of $0.78) • Gross Margin Up 220 bps YoY; Adj. GM1 Up 300 bps YoY • Backlog at $18.5B (Up $307M Sequentially) • Book-to-Bill for TTM of 1.02 (Up Sequentially & YoY) • SG&A Down $6M YoY; Adj. SG&A1 Down $22M YoY • OP Margin of
Slide 11: FY17Q2 Lines of Business Segment Financials
FY17Q2 Lines of Business Segment Financials Operating Profit vs. FY16Q2 OP Margin vs. FY16Q2 Line of Business FY17Q2 FY17Q2 Aerospace & Tech. $45M -18% 7.8% (-43 bps) Buildings & Infra. $44M +3.6% 7.5% (+18 bps) Industrial $24M +94% 4.1% (+227 bps) Petroleum & Chem. $36M +15% 6.4% (+281 bps) Non-all
Slide 12: Restructuring & Investments
Restructuring & Investments Strategic Investments to Enhance Our Capabilities • 2015 Restructuring Program Substantially Completed in Q2 – Final cost estimate of $445M – Final annual savings estimate of $285M – Remaining office consolidation activities expected to be completed in Q3 (cost estimate o
Slide 13: Capital Allocation
Capital Allocation Balanced Use of Cash to Support Growth & Enhance Shareholder Value • $500M Share Buy-Back Authorization Over 3 Years – Repurchased 4.9M shares to date ($234M) – Repurchased 0.9M shares in FY17Q2 ($51M) – Continued measured approach to remaining $266M • Dividend Program – Inaugural
Slide 14: Summary: Our Transformation is Underway
Summary Our Transformation is Underway • Continued Stable FY17 Outlook Projected – Stronger underlying operational performance – Sequential 2H revenue/profit increase – Adj. EPS guidance remains at $3.00 - $3.30 • Margin Improvements Continue • Strategic Investments Continue in Q3 • Growth Prospects
Slide 15: Thank You!
Thank You! © Copyright Jacobs May 9, 2017 www.jacobs.com | worldwide
Slide 16: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following tables reconcile the U.S. GAAP values of net earnings, EPS, revenue, SG&A expenses, operating profit, gross margin, and operating profit margin and total other income and expense, to the corresponding "adjusted" amounts. For the comparable periods present
Slide 17: Non-US GAAP Financial Measures (cont’d)
Non-US GAAP Financial Measures (cont’d) Adjusted net earnings and adjusted EPS are non-GAAP financial measures that are calculated by excluding the after-tax costs related to the 2015 Restructuring activities and other charges associated with our Europe, UK, and Middle East region (collectively refe