Slide 1: Fiscal Fourth Quarter Earnings Conference Call
Fiscal Fourth Quarter Earnings Conference Call November 24, 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures 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 To suppleme
Slide 3: Today's agenda
Today’s agenda Business review ▪ Jacobs Focus 2023 ▪ Sustainable solutions ▪ Results summary Lines of business review ▪ Critical Mission Solutions ▪ People & Places Solutions Financial review ▪ Q4 and FY20 results ▪ Focus 2023 and integration update ▪ Balance sheet and cash flow Outlook & summary 3
Slide 4: Focus 2023 - Deliver Growth In Accelerating Technology Shift
Focus 2023 - Deliver Growth In Accelerating Technology Shift Provide workforce flexibility to promote a dynamic and inclusive culture ▪ Drive continuous learning, enabling our talent to be agile and forward leaning ▪ Redefine the purpose of place to support a company like no other Enhance cost struc
Slide 5: A resilient business model
A resilient business model Diversified portfolio aligned to multiple growth opportunities ▪ Continued strong productivity in virtual and hybrid work environments ▪ Aligned well to thematic growth opportunities across both lines of business ▪ Strategy combines global scale, deep expertise and enhance
Slide 6: Delivering sustainable solutions
Delivering sustainable solutions Recently added to Dow Jones Sustainability™ North America Index PFAS Remediation Hydrogen Economy Climate Action Plan Value Chain World’s First Field-scale Biogeochemical Jacobs and Yarra Valley Water: White Paper Meridian Water, North London: £7bn Western Digital: G
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including Wood Nuclear) Strengthening resilient base and expanding into higher value solutions U.S. / International 85% / 15% ▪ Multi-year enterprise contracts provide long-term stability Government ~86% ▪ Next 18-month new business
Slide 8: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q4 2020) U.S./International 65% / 35% Growth through competitive advantage and secular trends Public / Private Sector 60% / 40% ▪ Deep domain expertise delivering diverse solutions in resilient markets Reimbursable and Lower R
Slide 9: Fiscal 2020 Q4 results
Fiscal 2020 Q4 results Revenue increased 4% y/y and Pro Forma Net Revenue increased 2.3% y/y GAAP Operating Profit (OP) of $22M and OP Margin of 0.6% Adj. OP of $258M (+2%) and Net Revenue Adj. OP Margin of 9.1% (-30 bps) GAAP Net Earnings of $70M and EPS from Continuing Operations of $0.53 impacted
Slide 10: Fiscal 2020 results
Fiscal 2020 results Revenue increased 7% y/y and Pro Forma Net Revenue increased 2.5% y/y GAAP Operating Profit (OP) of $536M and OP Margin of 4.0% Adj. OP of $970M (+9%) and Net Revenue Adj. OP Margin of 8.9% (+10 bps) GAAP Net Earnings of $354M and EPS from Continuing Operations of $2.67 impacted
Slide 11: Segment financials
Segment financials $’s in millions Q4 Q4 Fiscal Fiscal Y/Y Y/Y 2019 2020 2019 2020 Critical Mission Solutions Operating Profit 88 108 23% 310 372 20% as a % of revenue 6.7% 8.1% 140 bps 6.8% 7.5% 70 bps People & Places Solutions Operating Profit 199 183 (8)% 714 741 4% as a % of net revenue 14.3% 12
Slide 12: Focus 2023 and integration update
Focus 2023 and integration update Enhancing Operations for Next Stage of Growth ▪ Incurred $194M charge in Q4 2020 related to Focus 2023 ▪ 80% of charge related to real estate lease impairment ▪ ~$1M of cash flow impact in Q4 Wood Nuclear Acquisition and Integration Update ▪ On track to achieve expe
Slide 13: Balance sheet and cash flow
Balance sheet and cash flow Positive Free Cash Flow generation for Fiscal 2020 Q4 Leverage Metrics ▪ Fiscal 2020 cash flow from operations $807 million $ billions FY20 Q4 ▪ Q4 DSOs down 9 days q/q due to focus on improving collections Q4 Net Debt Position $0.8B ▪ FY20 reported FCF1 $689M, including
Slide 14: Outlook & Summary
Outlook & Summary Underlying FY21 assumptions ▪ Fiscal 2021 outlook reflects accelerating awards and revenue burn in 2H as customers adjust and prioritize spending under new U.S. administration FY21 Outlook ▪ Initiating adjusted EBITDA outlook at $1,055 to $1,155M ▪ Initiating adjusted EPS outlook a
Slide 15: FY2020: Performance through our people
FY2020: Performance through our people We do things right. We challenge the accepted. We aim higher. We live inclusion. 15
Slide 16: Environmental, Social and Governance (ESG) summary
Environmental, Social and Governance (ESG) summary Jacobs ESG Investor Page 2019 ESG Data Disclosure for Analysts ▪ 100% renewable energy for our Water Business Overview operations in 2020. ▪ Net zero carbon for our operations Environmental and PFAS Overview and business travel in 2020. ▪ Carbon neg
Slide 17: Jacobs: Delivering innovative solutions & disciplined execution
Jacobs: Delivering innovative solutions & disciplined execution Fiscal 2020 ($ in billions) Reimbursable and Net Revenue FY20 Gross Backlog Lower Risk Fixed Public/Private As Reported As Reported U.S./Int’l Mix Talent Base Price Services Sector 75%/25% ~55,000 89% 72%/28% ▪ Increasing portfolio mix
Slide 18: Recast consolidated financials
Recast consolidated financials PF Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 20181 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Critical Mission Solutions Backlog 6,641 7,174 7,148 7,130 7,130 7,158 7,285 8,393 8,460 8,460 8,473 9,135 9,066 9,104 9,104 Reve
Slide 19: Recast consolidated financials
Recast consolidated financials Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 2018 1 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,404 22,569 22,569 22,671 23,291 23,674 23,818 23,818 Revenue 2,746 2,87
Slide 20: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $’s in thousands FY 2018 FY 2019 FY 2020 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Depreciation (pre-tax) 25,607 1 26,764 24,423 21,567 98,361 1 18,211 23,491 25,851 20,508 88,061 22,152 22,566
Slide 21: Non GAAP financial measures
Non GAAP financial measures Three Months Ended The following tables reconcile the U.S. GAAP values of net October 2, 2020 revenue, net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For Effects of the comparable periods presented below, such adju
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 Three Months Ended periods presented below, such adjustments consist of amounts
Slide 23: Non GAAP financial measures
Non GAAP financial measures For the Year Ended The following tables reconcile the U.S. GAAP values of net October 2, 2020 revenue, net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For Effects of the comparable periods presented below, such adju
Slide 24: 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 Non GAAP financial measures below, such adjustments consist of amounts incurred in connect
Slide 25: Reconciliation of net earnings to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA Three Months Ended Three Months Ended 9/27/2019 10/2/2020 Adj Net earnings from Continuing Operation
Slide 26: Reconciliation of net earnings to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA Twelve Months Ended Twelve Months Ended 9/27/2019 10/2/2020 Adj Net earnings from Continuing Operati
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