Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Investor Presentation (March 2022)

68 slides from Jacobs Solutions's investor presentation, Mar 3, 2022

1. Slide 1: Jacobs Strategy: Boldly moving forward

   Jacobs Strategy Boldly moving forward March 2022

2. Slide 2: Forward-Looking Statement Disclaimer

   Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are i

3. Slide 3: Non-GAAP Financial Measures and Pro Forma Figures

   Non-GAAP Financial Measures and Pro Forma Figures Non-GAAP Financial Measures To supplement the financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures within the meaning of Regulation G und

4. Slide 4: Agenda

   Agenda Culture of Caring Boldly moving forward Delivering the vision Bringing it back to people Value-creating earnings power Link to Strategy launch video ©Jacobs 2022

5. Slide 5: Why we start with culture … Our people!

   Why we start with culture … Our people! 5 ©Jacobs 2022

6. Slide 6: Our cultural transformation: An inspirational journey for all

   Our cultural transformation: An inspirational journey for all + Inspiration + Innovation + Inclusion & Diversity Empowerment & Accountability 6 ©Jacobs 2022

7. Slide 7: Diversity achievements

   Diversity achievements  Executive Leadership 55% female / overall diversity ~66%  Reshaped Board of Directors – 30% female / overall diversity 50%  ~ 45% of new graduate hires female  Improving year-over-year in all other diversity categories  All senior leaders (300+) have Inclusion goals tied

8. Slide 8: Delivering on our Purpose … living our Values

   Delivering on our Purpose … living our Values To create a more connected, sustainable world. We do things right. We aim higher. We always act with integrity — taking We do not settle — always looking beyond responsibility for our work, caring for to raise the bar and deliver with excellence. our peo

9. Slide 9: Capital deployment aligned to organic growth strategy

   Capital deployment aligned to organic growth strategy 2021 Net Revenue Invested in leading Strategic and Digital Consultancy $2B $ 11.7B PA Consulting 2016A Net Revenue1 $ 8.5B Added series of Data, Cyber and Technologies ~$2B Critical Mission Oil/Gas E&C Solutions $ 2.3 Government Acquired Water, E

10. Slide 10: Significant shareholder value created

    Significant shareholder value created 4.70 5-year Results 4.20 Net Revenue CAGR 7% 3.70 Adjusted OP Margin +340 bps 3.20 Adjusted OP CAGR 15.7% 2.70 Adjusted ROIC +260 bps Jacobs Jacobs 2.20 Total Shareholder Return ~230% 1.70 1.20 S&P 500 S&P 500 0.70 10/1/15 10/1/16 10/1/17 10/1/18 10/1/19 10/1/20

11. Slide 11: A tremendous opportunity to disrupt and transform

    A tremendous opportunity to disrupt and transform 11 ©Jacobs 2022

12. Slide 12: Deep dive review reveals opportunities

    Deep dive review reveals opportunities  Core markets growing, placing Jacobs in strong position  World facing generational challenge with climate change  Clients looking for front-end solutions and thought leadership  Data and technology changing how we process and make decisions National Energy

13. Slide 13: 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 13 ©Jacobs 2022

14. Slide 14: $6B in ESG and Climate Response revenue across all markets

    $6B in ESG and Climate Response revenue across all markets Approximate FY’21 ESG revenue by market ITER Fusion Project Green Fleets World’s largest fusion energy experiment: Brisbane Metro Bus Rapid Transit (BRT), Australia: designing and delivering the First Plasma technical advisor for fleet of ne

15. Slide 15: Establish high value consulting with PA investment

    Establish high value consulting with PA investment Collective strengths drive value creation Major UK Pacific Gas & Confidential Tier 1 Government client Electric Life Sciences client  Calendar YoY growth Strategic advisory Multi-year State-of-the-art − Revenue 32% / Adj. EBITDA 44% program for 10,

16. Slide 16: Platform of capabilities and technology enhance client offerings

    Platform of capabilities and technology enhance client offerings Specialized data and Geospatial and edge Data analytics cyber consulting services computing technology Software platforms  Strategy, Risk & Governance  Advanced Analytics  Collection Automation  Digital Operations Center  Workforc

17. Slide 17: Additional growth through the U.S. Infrastructure Investment Act

    Additional growth through the U.S. Infrastructure Investment Act Jacobs’ market alignment with IIJA spend Advanced M'facturing Other/Not Aligned Airports 2% 4% 5% $550B IIJA Telecom Highways & Bridges above-baseline spend 36% 7% Transportation $1.2 Trillion $284 billion Energy & IIJA Environment Inf

18. Slide 18: Data + technology: changing the way we process and make decisions

    Data + technology: changing the way we process and make decisions Client driven digital Pressures on labor Security of smart, transformation and efficiencies in connected decision making infrastructure Sweet spot: digitally-enabled decision making in a secure environment 18 ©Jacobs 2022

19. Slide 19: Positioned for long-term growth … driven by our people

    Positioned for long-term growth … driven by our people Connected to purpose Partners to our clients Digitally-enabled 19 ©Jacobs 2022

20. Slide 20: A powerful portfolio entering 2025

    A powerful portfolio entering 2025 People & Places Solutions Data & Consulting Capability Critical Mission Solutions ~$7B revenue ~$3B revenue ~$5B revenue Divergent Solutions PA Consulting Investment ~$1.5B revenue ~$1.5B revenue 20 ©Jacobs 2022

21. Slide 21: FY22 – 24 Organic Targets

    FY22 – 24 Organic Targets FY24 Organic Targets Financial (vs FY21) Net Revenue Growth 7% - 10% CAGR Adjusted Operating Profit Margin Expansion +60 to 100 bps Adjusted Operating Profit Growth Double-digit CAGR Adjusted ROIC +125 to 175 bps New Strategic Metrics FY24 Organic Targets Gender diversity 4

22. Slide 22: Delivering the Vision

    Delivering the Vision ©Jacobs 2022

23. Slide 23: Portfolio decisions strongly aligned with most attractive secular growth

    Portfolio decisions strongly aligned with most attractive secular growth Jacobs portfolio by market1  ~$8T addressable market – highly fragmented (approx. from FY’21 Gross Revenue)  Targeting higher growth and higher margin sub-segments Advanced Manufacturing  Client segments expected to outpace

24. Slide 24: Jacobs deep domain knowledge across diverse markets

    Jacobs deep domain knowledge across diverse markets Intel Penn Station Access, Metropolitan Leverage digital replication to design and program Jacobs portfolio by market1 Transportation Authority: manage increased semiconductor manufacturing Prime designer for the largest expansion of Metro- capacit

25. Slide 25: Three needle-moving accelerators catalyze additional growth

    Three needle-moving accelerators catalyze additional growth Infrastructure ▪ National Security ▪ Advanced Manufacturing ▪ Health & Life Sciences ▪ Energy & Environment ▪ Cities & Places ▪ Space 25 ©Jacobs 2022

26. Slide 26: Providing solutions & technologies that touch every aspect of Climate Response

    Providing solutions & technologies that touch every aspect of Climate Response Infrastructure Energy & Environment Cities & Places Health & Life Sciences Advanced Manufacturing National Security Space 26 ©Jacobs 2022

27. Slide 27: Climate Response Accelerator focus areas

    Climate Response Accelerator focus areas Energy Transition Decarbonization  Renewable & clean energy  Clean & smart mobility  Grid modernization  Green buildings  Energy storage  Business operations decarbonization  Electric vehicle & battery manufacturing  Industrial operations decarbonizat

28. Slide 28: Combined value proposition drives growth in both organizations

    Combined value proposition drives growth in both organizations Broad-based domain expertise Strategic thought leadership Applied science and engineering World-class, end-to-end innovation Global footprint Organizational transformation Large and diverse client base Applied technology Real value creat

29. Slide 29: Data Solutions – Cyber and robust analytics underpinned by domain knowledge

    Data Solutions – Cyber and robust analytics underpinned by domain knowledge Specialized Data and Geospatial and Edge Data Analytics Cyber Consulting Services Computing Technology Software Platforms Critical Infrastructure National Security Landscape of opportunity 29 ©Jacobs 2022

30. Slide 30: Data Solutions value proposition: technology + expertise

    Data Solutions value proposition: technology + expertise 1. 2. 3. Collection technology, Broad cross-market Multi-market hardware/software, analytical expertise application of deep platforms cyber domain expertise Sweet spot: deriving actionable insights for decision-making 30 ©Jacobs 2022

31. Slide 31: Critical Mission Solutions – Driving continued margin expansion

    Critical Mission Solutions – Driving continued margin expansion Approx. revenue by market Business breakdown Q1 FY’22 revenue Infrastructure 5% (Telecom) Advanced Manufacturing 3% US / International ~81 / 19% National Security (Auto test & diagnostics) Public / Private ~86 / 14% Cyber and Reimbursab

32. Slide 32: People & Places Solutions – Capturing infrastructure investment spend

    People & Places Solutions – Capturing infrastructure investment spend Approx. revenue by market Business breakdown Q1 FY’22 revenue Advanced Manufacturing 6% (Semiconductors and Data Centers) US / International ~60 / 40% Transportation Public / Private ~62 / 38% 30% Cities & Places 14% Reimbursable

33. Slide 33: IIJA to drive significant multi-year growth

    IIJA to drive significant multi-year growth Jacobs’ market alignment with IIJA spend Spend in $B Advanced M'facturing FY21 Current baseline IIJA 2% (over 5 years) (above-baseline Other/Not Aligned 4% increase) Airports 5% Highways and bridges 47.0 236.0 304.0 +29% Highways & Telecom Bridges Mass tra

34. Slide 34: PA Consulting – Achieving differentiated growth through ingenuity

    PA Consulting – Achieving differentiated growth through ingenuity Approx. revenue Approx. revenue Business breakdown Q1 FY’22 revenue by market by capability (December 2021 TTM) (December 2021 TTM) UK / US / Other ~77% / 12% / 11% Public / Private ~50 / 50% Backlog Growth y/y (GBP) +11% Energy & Tra

35. Slide 35: Accelerating shift to higher value solutions

    Accelerating shift to higher value solutions Approximate revenue mix % 100% Conventional services  Planning  Engineering  Design  Program Management  O&M  Asset Management 50% ~50% / 50% High-value solutions  Consulting  Product & service- based solution  Incentive-based commercial model 

36. Slide 36: Overview of FY’21-’24 organic financial targets

    Overview of FY’21-’24 organic financial targets Critical Mission People & Places PA Consulting Solutions Solutions Net Revenue Growth 6% to 9% 6% to 9% 12% to 15% Margin +25 – 100 bps +100 – 150 bps +/- Flat Operating Profit Margin 10%+ 10%+ 12% to 15% 36 ©Jacobs 2022

37. Slide 37: Bringing it back to people

    Bringing it back to people ©Jacobs 2022

38. Slide 38: Looking towards 2025

    Looking towards 2025  Excited about a future that builds on our purpose and strong culture foundation  Doubling-down on the fundamentals – while evolving our existing culture to accelerate our strategy  Uncompromising in our approach to people and talent  Our strategy, culture and people ensure

39. Slide 39: Our cultural transformation: An inspirational journey for all

    Our cultural transformation: An inspirational journey for all + Agile + Learning Culture Innovation + Inclusion & Diversity Empowerment & Accountability When we learn and grow together, we activate Empowerment & Accountability, Inclusion & Diversity, and Innovation. We lead, embrace and anticipate c

40. Slide 40: 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. 40 ©Jacobs 2022

41. Slide 41: Total employment value

    Total employment value Purpose Compensation & Benefits Flexible Ways of Working Employee Experience Wellbeing Inclusion & Diversity Career Opportunities Learning & Development 41 ©Jacobs 2022

42. Slide 42: Value of a learning culture to Jacobs

    Value of a learning culture to Jacobs A learning culture is a company-wide shift in mindsets and work approaches resulting in:  External orientation that allows us to sense trends; take rapid action  Stronger, more adaptable work teams; ready for change and disruption  Increased efficiency and pr

43. Slide 43: Jacobs. A world where you can.

    Jacobs. A world where you can. 43 ©Jacobs 2022

44. Slide 44: An engaged talent ecosystem to fuel long-term growth

    An engaged talent ecosystem to fuel long-term growth  Workforce Planning  Performance Management Connect talent with sales pursuits & Rewards and active projects to maximize Connect career development plans, utilization of our global teams. performance management and Talent rewards with client out

45. Slide 45: Value-creating earnings power

    Value-creating earnings power ©Jacobs 2022

46. Slide 46: Strategy results in value-creating earnings power

    Strategy results in value-creating earnings power  Diversified business model aligned to multiple secular growth trends  Strong track record of execution and resilience  Accelerating organic growth and improved profitability  Robust cash flow conversion allows for additional capital deployment C

47. Slide 47: A diversified business profile; continue to reshape toward higher growth

    A diversified business profile; continue to reshape toward higher growth Diversified Revenue Mix Aligned Portfolio Actions Result in Higher Growth to Secular Growth Trends1 Addressable Market PA Consulting Divergent Solutions Digital Modernization Data Analytics 2016-2019 2019-2021 2021-2024 Beyond

48. Slide 48: Track record of strong financial growth through volatile economic cycles

    Track record of strong financial growth through volatile economic cycles Net Revenue1 and GAAP Revenue ($B) Return on Invested Capital ROIC $12.7 $13.6 $14.1 $11.0 $11.7 $9.1 $10.6 $10.2 10.2% 11.1% 11.5% 9.2% 2018 2019 2020 2021 2022E 2018 2019 2020 2021 2022E Net Revenue GAAP Revenue Adjusted EBIT

49. Slide 49: Robust underlying Cash Flow trend with improving GAAP to Adj. results

    Targeted based on ~100% of $1,0931 adj. EPS outlook Robust underlying Cash Flow trend with $261M Repayment of Gov’t improving GAAP to Adj. results PA Investment consideration treated as Stimulus Restructuring & deal costs compensation $6991 $199M restructuring and Net restructuring other net charges

50. Slide 50: Advancing our strategic direction with Focus 2023

    Advancing our strategic direction with Focus 2023 Foster Speed, Agility and Productivity  Engage entire business in transformation  Drive continuous learning, enabling talent to be agile and forward leaning Focus 2023 expected to deliver $100 million in gross savings by end of FY22  Streamlining

51. Slide 51: Highly attractive Lines of Business with strong growth characteristics

    Highly attractive Lines of Business with strong growth characteristics FY21 Profile People & Places Solutions Critical Mission Solutions PA Consulting Investment1  $8B gross revenue  $5B revenue  $1B revenue  $6B net revenue  8.8% OP Margin  23.3% OP Margin  13.0% OP Margin Strong base of rec

52. Slide 52: FY22 to FY24 Organic Financial Targets

    FY22 to FY24 Organic Financial Targets Critical Mission People & PA Consulting Jacobs Solutions Places Net Revenue Growth 6% to 9% 6% to 9% 12% to 15% 7% to 10% Adj. Operating Profit +25 – 100 bps +100 – 150 bps +/- Flat +60 to 100 bps Margin Adj. Operating Profit 10%+ 10%+ 12% to 15% Double-Digit G

53. Slide 53: Jacobs today: Higher value, long-term organic earnings power

    Jacobs today: Higher value, long-term organic earnings power Semiconductor, ESG & Infrastructure Data & Consulting Life Sciences & National Security & Modernization Portfolio Electrification Space Ecosystem $7B $2B $1B $1.5B Strong Organic Growth + Continued Margin Expansion ~$10 adjusted EPS in fis

54. Slide 54: Divergent Solutions

    Divergent Solutions >$1B Annual FY22E Revenue Platforms, Cyber & Technical & Technologies & Intelligence Innovative Software Solutions Solutions Solutions  Strategy, Risk & Governance  Advanced Analytics  Collection Automation  Digital Operations Center  Workforce enablement  Artificial Intell

55. Slide 55: A powerful portfolio exiting 2024 and entering 2025

    A powerful portfolio exiting 2024 and entering 2025 People & Places Solutions PA Consulting Critical Mission Solutions Entering 2025 People & Places Solutions Data & Consulting Capability Critical Mission Solutions ~$7B revenue ~$3B revenue ~$5B revenue Divergent Solutions PA Consulting Investment ~

56. Slide 56: Capital Deployment accelerates organic focus to higher value solutions

    Capital Deployment accelerates organic focus to higher value solutions Strategic Infrastructure & Energy Cyber, Space & Digital & Strategic Software & Data Impact Environment Transition National Security Consulting Enabled Solutions Wood Nuclear 10.1% 11.5% 8.9% 6.8% 4.9% 4.0% P&PS Portfolio by the

57. Slide 57: Capital deployment accelerates EPS growth

    Capital deployment accelerates EPS growth FY 16 FY 21 FY 25 earnings earnings organic Potential FY 25 earnings power (Actual) (Actual) earnings with capital deployment ~$11.00 ~$12.00 ~$10.00 Adj. EPS Adj. EPS Adj. EPS $6.29 Adj. EPS $3.081 Adj. EPS Net Net Net Net Net Leverage Leverage Leverage Lev

58. Slide 58: Appendix

    Appendix ©Jacobs 2022

59. Slide 59: Growing markets

    Growing markets Approximate % Markets P&PS CMS of Jacobs Portfolio  Water  Telecom Infrastructure 32%  Transport  Defense National Security  Intelligence 16%  Cyber  Electronics and Data Centers  Automotive Advanced Manufacturing 4%  Specialized Manufacturing  Health Health & Life Sciences

60. Slide 60: Our market growth is aligned with strong secular trends

    Our market growth is aligned with strong secular trends Markets Definitions Addresses global national governments’ focus on modernizing aging infrastructure and post-pandemic economic stimulus. As an example, over 80% of the $550B US Infrastructure Investment and Jobs Act is aligned with our Infrast

61. Slide 61: Selected financial data

    Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 26,631 26,631 28,006 Revenue 3,360 3,427 3,260 3,520 13,567 3,382 3,548 3,576 3,586 14,093 3,381 Net Revenue

62. Slide 62: Selected financial data

    Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 $’s in millions 2020 2020 2020 2020 2020 2021 20211 2021 2021 2021 2022 Critical Mission Solutions Backlog 8,473 9,135 9,066 9,104 9,104 9,683 9,779 9,565 10,589 10,589 10,798 Revenue 1,182 1,243 1,211 1,329 4,966 1,295 1,310 1,218 1,264 5,087

63. Slide 63: Other operational metrics from continuing operations

    Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $’s in thousands 2020 2020 2020 2020 FY 2020 2021 2021 2021 2021 FY 2021 2022 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 26,540 101,024 26,237 (pre-tax) Amortization of Intangibles 21,845 22,094

64. Slide 64: PA Consulting’s strong growth and margin provides upside to valuation

    PA Consulting’s strong growth and margin provides upside to valuation Strategy firms Design houses $’s in millions Teams with End-to-end real-world experience innovation capabilities Q1 . Jacobs Fiscal Year Ending September FY20 FY21 2022 PA Consulting Revenue 770 1,028 290 y/y local currency 24% 21

65. Slide 65: PA modeling 101

    PA modeling 101 Income Statement Adjusted EBITDA Calculation Adjusted EBITDA reflects GAAP requires PA NCI including minority Adj. Net Earnings From Continuing Revenue Consulting to be fully Operations interest reduction for PA consolidated on P&L Consulting Gross Profit Adj. Income Tax Expense from

66. Slide 66: Capital deployment supplemental

    Capital deployment supplemental Close Date Investment Strategic Rationale Status of Forecast vs Business Case 12/17 CH2M Water, Environmental & Infrastructure Consultancy & Design Exceeding original expectation driven by accelerating $3.3B demand for ESG & Technology solutions 4/19 Divested -Oil/Gas

67. Slide 67: 2018 to 2022E financial slide footnotes

    2018 to 2022E financial slide footnotes  The difference between net revenue and GAAP revenue is the impact of pass-through revenue.  Fiscal 2022E represents the mid-point of the company’s guidance or implied based off such guidance  Adjusted EPS = GAAP EPS without Amortization of Intangibles Rest

68. Slide 68: i | Challenging today. e >

    i | Challenging today. e > vacobs ware, inoyfira

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