Slide 1: Second Quarter Fiscal 2019
Second Quarter Fiscal 2019 March 14, 2019
Slide 2: Forward Looking Statement
Forward Looking Statement Forward Looking Statements: The presentation contains forward-looking statements, including those regarding our anticipated financial results for our second quarter 2019 and our guidance for future financial performance in our third quarter of fiscal year 2019 (including, n
Slide 3: Our People: Jabil's Most Important Asset
3 Our People: Jabil’s Most Important Asset 2
Slide 4: Q2 FY19 Results
Q2 FY19 Results Revenue $6.1 Billion • Strong Growth of 14% Year-on-Year NET REVENUE • Strength in Healthcare, CLOUD, Retail, Industrial Core Operating Margin 3.1% • 10 bps above mid-point of Guidance CORE OPERATING MARGIN Core EPS $0.64 • 3 cents above mid-point of Guidance CORE EPS See U.S.
Slide 5: FY19 Management Attention
FY19 Management Attention MARKET/PRODUCT SUCCESSFUL OUTSTANDING DIVERSIFICATION RAMP OF NEW FINANCIAL BUSINESS AWARDS PERFORMANCE Balanced Earnings and Selective Opportunities – FCF, Core Operating Cash Flow Targeted Fit & Execution Margin & Core EPS 4
Slide 6: Market & Product Diversification
Market & Product Diversification FY19 Revenue Projection Target: Mechanics No Product or Product Family Enterprise greater than 5% of Operating Healthcare & Income or Cash Flows in any Packaging fiscal year Action: 5G/Wireless Edge Devices & Accessories & Cloud Continue to apply our Solutions and Ap
Slide 7: Targeted New Business Awards
7 Targeted New Business Awards HEALTHCARE CLOUD $350 million $1,000+ million 5G / WIRELESS AUTOMOTIVE $350 million $300 million OTHER $350 million 6
Slide 8: New Business Award – Healthcare
New Business Award – Healthcare Jabil and Johnson & Johnson Medical Devices Companies (JJMDC) Strategic Collaboration on Target and Proceeding as Planned. Expands our Elevates our Healthcare Portfolio Technical Capabilities Proceeding to Plan WAVE 1 Integration Complete – Transferred two N. Americ
Slide 9: New Business Award – Cloud
New Business Award – Cloud Jabil has thoughtfully and diligently moved into the CLOUD space with select Partners. STRATEGIC RATIONALE Leverages our Jabil’s Scale, Global Reach, Factory Automation Operational Excellence Simplify Supply Chain / Reduce Invested Capital Optimize Design Cycles FINA
Slide 10: FY19 Outlook
FY19 Revenue • 13% Growth Year-on-Year $25 Billion • DMS Strength in Healthcare and Packaging NET REVENUE • EMS Strength in CLOUD, Retail and Industrial $400 Million Adjusted Free Cash Flow ADJUSTED FCF • Current Outlook – 60% Increase Year-on-Year Core EPS ~ $3 • Current Outlook – In the Rang
Slide 11: Financial Update
Financial Update JABIL
Slide 12: Second Quarter Fiscal Year 2019 Income Highlights
Second Quarter Fiscal Year 2019 Income Highlights Three months ended February 28, (In millions, except for per share data) 2019 2018 Net revenue $6,067 $5,301 U.S. GAAP operating income $154 $130 U.S. GAAP net income $67 $37 U.S. GAAP diluted earnings per share $0.43 $0.21 Core operating income (non
Slide 13: Second Quarter Segment Results
Second Quarter Segment Results Diversified Manufacturing Services (DMS) Net Revenue Decrease of 7% Core margin* (non-GAAP) of 4.5% DMS Electronics Manufacturing Services (EMS) $6.1B 37% Net Revenue Increase of 33% EMS Revenue Core margin* (non-GAAP) of 2.3% 63% Total Company Net Reve
Slide 14: Market Diversification
Market Diversification DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY19E $ in billions FY19E Mechanics $1.9 Automotive $1.6 Digital Print & Retail $2.3 Healthcare & Packaging $3.2 Industrial & Energy $2.5 Edge Devices & Accessories $4.0 5G / Wireless & Cloud $3.8 AR/VR/Lifestyl
Slide 15: Cash and Balance Sheet Metrics
Cash and Balance Sheet Metrics Three months ended ($ in millions) February 28, 2019 Cash flow from operations $199 Net capital expenditures2 $171 Free cash flow (non-GAAP)1 $28 Core EBITDA (non-GAAP)2 $376 Core ROIC (non-GAAP)1 16.5% 1 See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on Mar
Slide 16: Capital Return Framework
Capital Return Framework CUMULATIVE SHAREHOLDER RETURN WEIGHTED AVERAGE DILUTED FY16 – Q2 FY19 SHARES OUTSTANDING Share Repurchases 225 Dividends 215 205 19% 195 reduction 185 175 $1.4B 165 193M 155 186M 175M 145 157M 135 125 FY16 FY17 FY18 Q2 FY19 15
Slide 17: Third Quarter 2019 Guidance
Third Quarter 2019 Guidance Segment Revenue Guidance Q3 FY19E YoY Change Diversified Manufacturing Services $2.0B Decrease ~12% Electronics Manufacturing Services $4.0B Increase ~27% Consolidated Guidance Q3 FY19E Net revenue $5.7B - $6.3B U.S. GAAP operating income $106M - $167M U.S. GAAP dilut
Slide 18: Q&A
MIKE DASTOOR MARK MONDELLO CHIEF EXECUTIVE OFFICER Q&A CHIEF FINANCIAL OFFICER
Slide 19: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations
Slide 20: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (In thousands, except for per share data) (Unaudited) Three months ended Six months ended February 28, 2019 February 28, 2018 February 28, 2019 February 28, 2018 Operating income (U.S. GAAP) $ 153,983 $ 129,5