Slide 1: Fiscal 3rd Quarter Earnings Conference Call – August 6, 2018
Investor Presentation February 2018 Delivering Advanced Solutions for a More Connected, Sustainable World Fiscal 3rd Quarter Earnings Conference Call – August 6, 2018
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
Slide 3: Today's Agenda
Today’s Agenda Business Review ‾ High Performance Culture ‾ Review Q3 Highlights ‾ Line of Business Review ‾ CH2M Integration Update Financials Review ‾ Jacobs Q3 Results ‾ Balance Sheet ‾ Capital Allocation Summary and Outlook 3
Slide 4: Delivering a Strong Fiscal 2018
Delivering a Strong Fiscal 2018 Profitable Growth Driving Results Tracking Well Against 3 Year Strategy Driving inclusion and diversity into our Jacobs “culture of caring” Robust top-line growth while achieving improved profitability Q3 adjusted operating profit margin up 80 bps from fiscal 20
Slide 5: Strengthening Our Winning Culture
Strengthening Our Winning Culture Jacobs Employee Network Group Summit Inclusion and Diversity Core to Strategy and Differentiation 5
Slide 6: Strong Backlog Growth
Strong Backlog Growth Pro Forma Q3 backlog up 8% year over year ~75% of Backlog in Higher Margin Business Backlog ($ in billions) 27.2 Backlog by Line of Business 26.5 ECR ATEN 18.6 $7.0 $8.9 Aerospace, Technology, Environmental and Nuclear Buildings, Infrastructure and Advanced Facilities Energy, C
Slide 7: Aerospace, Technology, Environmental and Nuclear (ATEN)
Aerospace, Technology, Environmental and Nuclear (ATEN) Unique Delivery Model Driving Share Gains Q3 ATEN Snapshot Q3 Revenue by End Market One of the largest diversified government services providers U.S./International 85%/15% Gaining share by leveraging strong technical expertise, Government ~
Slide 8: Buildings, Infrastructure and Advanced Facilities (BIAF)
Buildings, Infrastructure and Advanced Facilities (BIAF) Strong Global Infrastructure Demand Q3 BIAF Snapshot Q3 Revenue by End Market Population, aging infrastructure & urbanization driving growth U.S., Middle East and Asia showing strong demand U.S./International 58% / 42% Despite U.K. uncer
Slide 9: Energy, Chemicals and Resources (ECR)
Energy, Chemicals and Resources (ECR) Q3 ECR Snapshot Q3 Revenue by End Market Energy and Chemicals U.S./International 70% / 30% Investments across refining and crude oil-to-chemicals 2nd wave of U.S. ethane crackers creating global opportunities Reimbursable ~80% Shipping industry regulations
Slide 10: Exceeding CH2M Acquisition Commitments
Exceeding CH2M Acquisition Commitments AUGUST 2017 AUGUST 2018 CH2M Acquisition Criteria Announced Commitments Performance Update ✓ • Ranked #1 Design Firm by ENR • Expand into higher growth sectors of Strategic Rationale • # 1 in Water, # 1 in Airports water, environmental, nuclear and transportati
Slide 11: FY18Q3 Results
FY18Q3 Results Strong Pro Forma Revenue Growth Revenue increased 14% compared with pro forma Jacobs + CH2M prior year period Q3 GAAP Operating Profit Margin 5.1%, Adj. Operating Margin 6.4% - up 80 bps y/y GAAP EPS of $1.05 up 42% y/y Adjusted EPS of $1.35 up 71% y/y Includes $0.07 from lower than
Slide 12: Revenue and Gross Margin Momentum
Revenue and Gross Margin Momentum $4.5 $4.2 25% $4.0 $3.9 $3.5 20% 19% 18% 18% 18% 18% 20% $3.0 16% $2.8 $2.5 15% $2.0 $1.5 $2.9 10% $2.6 $2.7 $2.6 $2.8 $2.3 $2.5 $1.0 5% $0.5 $0.0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 0% Revenue Revenue from CH2M Gross Margin % Year over Year Gross Margin Stron
Slide 13: FY18Q3 Jacobs LOB Segment Financials
FY18Q3 Jacobs LOB Segment Financials As Reported Adjusted Pro Forma vs. OP Margin OP Margin Line of Business Operating Profit vs. FY17Q3 FY17Q3 vs. FY17Q3 vs. FY17Q3 Aerospace, Technology, Environmental 7.3% 7.2%1 $89 M +81% +22% and Nuclear (ATEN) -77 bps -20 bps Buildings, Infrastructure and Advan
Slide 14: CH2M Acquisition Costs & Synergies
CH2M Acquisition Costs & Synergies Increasing Net Cost Synergy Target to $175 M Expected CH2M Net Cost Synergies Increased to $175 Million Achieved net synergies of $50 M through Q3, and now expect to deliver ~$75 M in 2018 Achieved ~60% of targeted $175 M run-rate savings at end of Q3 Targeti
Slide 15: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation On Track to De-lever Strong Cash Flow In Q3 De-levered with $172 M reduction in gross debt Healthy Balance Sheet Maintained Ending Q3 cash and equivalents of $0.8 B Ending Q3 gross debt of $2.3 B ‾ $1.5 B term loan ‾ $0.5 B private placement ‾ $0.3 B drawn
Slide 16: Summary and FY18 Outlook
Summary and FY18 Outlook Delivering on our 3-Year Strategy On Track to Deliver Against 3-Year Strategy CH2M Cost Synergies On Track, Focusing on Revenue Upside Updating FY18 Outlook Continued execution resulting in strong fiscal 2018 Expect FY18 adjusted EPS at high end of $4.00 to $4.401 Initia
Slide 17: Thank you!
Thank you! © Copyright Jacobs www.jacobs.com | worldwide
Slide 18: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following tables reconcile the U.S. GAAP values of net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For the comparable periods presented below, such adjustments consist of amounts incurred in connection with t
Slide 19: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) Adjusted net earnings and adjusted EPS are non-GAAP financial measures that are calculated by excluding (i) the after-tax costs related to the 2015 restructuring activities, which included involuntary terminations, the abandonment of certain leased offices, combi
Slide 20: Jacobs (JEC) | A Global Professional Services Leader
Jacobs (JEC) | A Global Professional Services Leader FY18E Revenue >$15B Net Debt $1.5B $8.9 Q3 BACKLOG $7.0 Q3 Gross Margin 18.7% Quarterly Dividend $0.15 FY19E Adj. EPS Outlook $5.00 to $5.402 Q3 U.S./Int’l Mix ~60/40 $27.2B Q3 Share Count 143M Talent Force ~78,000 $11.3 29% 30% Q3 REVENUE LINES O