Slide 1: First Quarter 2020 Results
FIRST QUARTER 2020 RESULTS December 17, 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward Looking Statements: The presentation contains forward-looking statements, including those regarding our anticipated financial results for our first quarter 2020; our guidance for future financial performance in our second quarter of fiscal year 2020 (including, net
Slide 3: Our Most Important Asset
OUR MOST IMPORTANT ASSET An Inclusive Environment which Promotes Diversity PUBLIC | ©Jabil Inc. 2019. All Rights Reserved. 3
Slide 4: Q1 FY20 Results
Q1 FY20 RESULTS What We’re Doing is Working NET REVENUE Revenue $7.5 • Growth of 15% Year-on-Year BILLION CORE OP MARGIN Core Operating Margin • Strong operational execution in Cloud, 3.7% Mobility, and Healthcare CORE EPS Core EPS • 17% growth Year-on-Year $1.05 See U.S. GAAP to non-GAAP reco
Slide 5: Values and Conduct of Our Leadership Team
VALUES AND CONDUCT OF OUR LEADERSHIP TEAM Keeping Ensuring a healthy Obsession with Perfect Balance of Long GIVING BACK OUR PEOPLE work environment of CUSTOMER Term VISION and to Global SAFE INCLUSION CARE Short Term EXECUTION COMMUNITIES 5
Slide 6: Composition of Jabil's Commercial Portfolio Is Key
COMPOSITION OF JABIL’S COMMERCIAL PORTFOLIO IS KEY ENTERPRISE MOBILITY HEALTHCARE & PACKAGING WIRELESS & CLOUD INDUSTRIAL & ENERGY EDGE DEVICE & LIFESTYLE DIGITAL PRINT & RETAIL AUTOMOTIVE & SEMI-CAP 6
Slide 7: Fiscal Year Update: Management's Outlook for FY20
FISCAL YEAR UPDATE NET REVENUE CORE OP MARGIN CORE EPS ADJ FREE CASH FLOW ~ $ 26.7 3.7% $ 3.60 $ 500+ BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY20 See U.S. GAAP to non-GAAP reconciliation in appendix. Core operating margin defined as core operating income divided by net revenue. 7
Slide 8: Thank You
THANK YOU 8
Slide 9: Financial Update
FINANCIAL UPDATE
Slide 10: First Quarter 2020 Income Highlights
FIRST QUARTER 2020 INCOME HIGHLIGHTS THREE MONTHS ENDED NOVEMBER 30, (In millions, except for per share data) 2019 2018 Net revenue $7,506 $6,506 U.S. GAAP operating income $153 $217 U.S. GAAP net income $40 $124 U.S. GAAP diluted earnings per share $0.26 $0.76 Core operating income (non-GAAP)1 $277
Slide 11: First Quarter Segment Results
FIRST QUARTER SEGMENT RESULTS DIVERSIFIED MANUFACTURING SERVICES (DMS) Net Revenue Increase of 3% Core margin* (non-GAAP) of 5.6% ELECTRONICS MANUFACTURING SERVICES (EMS) DMS Net Revenue Increase of 26% $7.5B 41% Core margin* (non-GAAP) of 2.4% EMS REVENUE 59% TOTAL COMPANY Net Revenue Inc
Slide 12: Cash Flow Highlights
CASH FLOW HIGHLIGHTS THREE MONTHS ENDED NOVEMBER 30, (In millions) 2019 Cash flow from operations $21 Net capital expenditures1 $207 Adjusted free cash flow (non-GAAP)2 ($186) Core EBITDA (non-GAAP)1 $464 Share repurchases $96 1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to n
Slide 13: Second Quarter FY20 Guidance
SECOND QUARTER FY20 GUIDANCE Segment Revenue Guidance Q2 FY20E YoY Change Diversified Manufacturing Services $2.35B Increase ~4% Electronics Manufacturing Services $4.00B Increase ~5% Consolidated Guidance Q2 FY20E Net revenue $6.0B - $6.7B U.S. GAAP operating income $70M - $189M U.S. GAAP dilut
Slide 14: FY20 End-Markets
FY20 END-MARKETS DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY19 FY20E $ in billions FY19 FY20E Automotive & Semi-Cap $1.9 $2.5 Mobility $3.3 $3.1 Digital Print & Retail $2.4 $2.6 Healthcare & Packaging $3.2 $4.2 Industrial & Energy $2.5 $2.8 Wireless / 5G & Cloud $4.3 $4.6 Ed
Slide 15: FY20 Outlook Assumptions
FY20 OUTLOOK ASSUMPTIONS Semi-Cap normalizes in summer of CY20 Double-digit growth in Healthcare & Packaging No material contributions from future M&A Stable economic environment 15
Slide 16: Fiscal Year Update: Management's Outlook for FY20
FISCAL YEAR UPDATE CORE OP CORE OP ADJ FREE NET REVENUE CORE EPS CASH FLOW INCOME MARGIN ~$ 26.7 $ 980 3.7% $ 3.60 $ 500+ MILLION BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY20 See U.S. GAAP to non-GAAP reconciliation in appendix. Core operating margin defined as core operating income divided by net
Slide 17: Q&A
Q&A MARK MONDELLO MIKE DASTOOR CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Slide 18: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations PUBLIC | ©Jabil Inc. 2019. All Rights Reserved. 18
Slide 19: 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 November 30, 2019 November 30, 2018 Operating income (U.S. GAAP) $ 152,779 $ 216,710 Amortization of intangibles 16,140 7,646 Stock-bas