Jacobs Solutions Inc. · NYSE:J
Jacobs Solutions — Credit Suisse 10th Annual Global Industrials Conference (November 2022)
40 slides from Jacobs Solutions's conference presentation, Nov 30, 2022
Slide 1: Jacobs Investor Presentation
Jacobs Investor Presentation December 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Certain statements contained in this presentation constitute forward-looking statements within the meaning of the Private Securities To supplement the financial results presented in accordance with Litigation Reform Act of 1
Slide 3: Jacobs – Company Overview
Jacobs – Company Overview Fiscal 2022 By Sector1 By Region By Contract Mix Fixed -price Advanced Manufacturing APAC & other Fixed -price at risk 7% 9% limited risk 5% Cities & Places 21% Infrastructure UK & 10% Space 35% Europe 5% 23% Health & Life Sciences 6% ▪ Jacobs provides a full spectrum of pr
Slide 4: Jacobs Fiscal 2022 Segment Summary
Jacobs Fiscal 2022 Segment Summary Critical Mission People & Places PA Consulting Solutions Solutions Investment Gross revenue $8,570 million Revenue (% of Total) $5,234 million $1,119 million Net revenue $6,251 million US / International 82% / 18% 62% / 38% 13% / 87% (~77% UK) Public / Private 88%
Slide 5: 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. 5
Slide 6: 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
Slide 7: 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 Trends Addressable Market PA Consulting Cyber & Intel Digital Modernization Data Analytics National Security Global Infrastructure Crit
Slide 8: Portfolio strongly aligned with most attractive secular growth
Portfolio strongly aligned with most attractive secular growth ▪ ~$8T addressable market – highly fragmented ▪ Targeting higher growth and higher margin sub-segments Jacobs portfolio by market1 ▪ Client segments expected to outpace market growth rates (approx. from FY’22 Gross Revenue) ▪ US Infrastr
Slide 9: 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 Transportation Authority: manage increased semiconductor manufacturing Jacobs portfolio by market1 Prime designer for the largest expansion of Metro- capacit
Slide 10: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Nature-based Solutions Green Fleets Pumped Hydro Justice40 Photo credit: Origin Energy Tyndall Air Force Base, FL: Jacobs is partnering with New York City Metropolitan Transportation Authority: Origin Energy, Au
Slide 11: Delivering Data Solutions Across Key Areas of Domain Expertise
Delivering Data Solutions Across Key Areas of Domain Expertise Transportation Platform Water Platform National Security Platform StreetLight Intelligent O&M BlackStack – SearchLynx Software as a Service (SaaS) platform providing Data analytics solution aggregates and analyzes Software accelerating s
Slide 12: People & Places Solutions
People & Places Solutions People & Places Solutions Snapshot (Net Revenue Q4 2022) Deep domain expertise + data-driven solutions + global scale ▪ Impact of expertise at scale driving differentiated solutions U.S. / International 62% / 38% ▪ Global delivery model benefiting capacity demands and talen
Slide 13: People & Places Solutions markets
People & Places Solutions markets P&PS provides end-to-end solutions for our clients’ most complex challenges – whether climate change, energy transition, connected mobility, integrated water management, smart cities or vaccine manufacturing Advanced Health and Life Sciences Energy & Environmental C
Slide 14: People and Places Solutions project highlights
People and Places Solutions project highlights Ellinikon Urban Thames Tunnel Expo 2020 Dubai The Elizabeth Line Regeneration Supported London’s As the official program Supporting delivery of Overall program Thames Tideway Tunnel delivery management the Elizabeth line, the management consultant ‘supe
Slide 15: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot (TTM including BlackLynx) Strong base of recurring revenue; new business pipeline margin-accretive U.S. / International 82% / 18% ▪ Multi-year enterprise contracts provide long-term stability Government ~88% ▪ High-value solutions and ef
Slide 16: Enabling the client mission
Enabling the client mission CMS creates, delivers and succeeds with certainty for its customers FEDERAL CIVILIAN DEFENSE INTELLIGENCE INTERNATIONAL COMMERCIAL ▪ NASA’s largest non-OEM services provider ▪ Delivers warfighter ▪ Enables critical U.S. national ▪ Supports U.K. and Australia ▪ Complete en
Slide 17: Critical Mission Solutions – recent notable contract wins
Critical Mission Solutions – recent notable contract wins Awarded Operating the Missile Defense Integrated Operations Awarded Department of Energy’s Idaho National Lab as the Center, supporting its network infrastructure, prime partner to use our nuclear tech-driven $4.6B modeling and simulation, an
Slide 18: Cyber – recent notable contract wins
Cyber – recent notable contract wins Awarded Providing wide-ranging cyber, digital services and modern Awarded Providing strategic and tactical warning, exposing and exploiting software engineering that support geospatial intelligence $302M terrorist vulnerabilities, supporting DOD combating terrori
Slide 19: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q4 2022) Unique combination of outcome-driven strategic and digital consulting ▪ End-to-end innovation by combining strategists, scientists and digital experts UK / US / Other 78% /13% / 9% ▪ Deep industry expertise across a diverse set of sectors and cu
Slide 20: PA Consulting indicative projects
PA Consulting indicative projects Improving Peoples Lives: Building a More Sustainable World: Protecting the World: Designing Next Gen, Smart Infrastructure: Working across the ecosystem with priority focus on Embracing sustainability to transform business Helping organizations evolve, reshape & reo
Slide 21: Advisory Services accelerating our positive social impact
Advisory Services accelerating our positive social impact Our teams are motivated by a common desire to create a better future for all. Improving healthcare for families Connecting communities Forestry protection Impacting air quality for all In collaboration with PA, on behalf of a Jacobs was recen
Slide 22: Segment financials
Segment financials $’s in millions 2021 2022 Y/Y Y/Y CC2 Critical Mission Solutions Operating Profit 447 424 -5.1% -3.2% as a % of revenue 8.8% 8.1% (68) bps People & Places Solutions Operating Profit 780 824 5.5% 9.9% Extreme search “ as a % of net revenue 13.0% 13.2% 16 bps PA Consulting Operating
Slide 23: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ FY22 cash flow from operations (CFFO) $475M and FCF1 of $347M; includes net one-time cash headwinds of $526M; comprised of $475M Inpex legal matter, $55M CARES Act repayment and a net benefit of $4M from other items ▪ Achieved 97% FY22 adj. F
Slide 24: Outlook & Summary
Outlook & Summary Initiating Fiscal 2023 Outlook ▪ Diverse portfolio of recurring revenue provides opportunity to grow under multiple economic scenarios with upside from Climate Response, Consulting & Advisory and Data Solutions accelerators ▪ Based on fiscal 2022 average rates, the company's outloo
Slide 25: Challenging today. Reinventing tomorrow.
Challenging today. Reinventing tomorrow. Our passion and commitment to take immediate action on climate change comes from our leadership and our 60,000 employees who, together, are pushing the limits of what’s possible by creating sustainable solutions that leave no one behind. We do things right. W
Slide 26: Debt & Interest Overview
Debt & Interest Overview Fixed vs Floating Debt Trend 4 $14.9 $25.1 $31.1 Fixed Debt ($B’s) $19.0 $17.9 $21.6 Floating Debt ($B’s) $19.2 3 $1.39 Net Interest Expense ($M’s) $1.43 $1.38 $14.2* $1.43 $1.42 $1.42 2 $1.42 1 $1.43 $2.06 $2.18 $2.03 $1.70 $1.47 $1.71 $1.69 0 $0.37 Q1 ’21 Q2 ’21 Q3 ’21 Q4
Slide 27: Office of Global Climate Response and Environmental, Social & Governance (ESG)
Office of Global Climate Response and Climate Response Environmental, Social & Governance (ESG) Climate change: the greatest challenge and opportunity of Energy Transition Natural Resource Stewardship our generation ▪ Clean energy generation ▪ Integrated water management ▪ Grid modernization & energ
Slide 28: Environmental, Social & Governance Summary
▪ Climate Action Plan 2022 Environmental, Social & Governance Summary ▪ FY21 ESG Disclosures ▪ PlanBeyond 2.0 A sustainable business model aligning purpose and vision with both growth and ▪ Climate Risk Assessment FY22 positive impact: ▪ Approved Science-Based Targets ▪ Fully integrates purpose with
Slide 29: Sector description
Sector description 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 Infrastructure markets (Water, Transportatio
Slide 30: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 26,631 26,631 28,006 27,790 28,090 27,862 27,862 Revenue 3,360 3,427 3,260 3
Slide 31: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions 2020 2020 2020 2020 2020 2021 2021 2021 1 2021 2021 2022 2022 2022 2022 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 10,556 10,222 10,561 10,561 Revenu
Slide 32: Other operational metrics from continuing operations
Other operational metrics from continuing operations Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q2 Q3 Q4 FY $’s in thousands Q1 2022 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 26,540 101,024 26,237 26,383 25,301 24,53
Slide 33: Non GAAP financial measures
Non GAAP financial measures (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, including $91.3 million pre-tax related to the final settlement of the Legacy CH2M
Slide 34: Non GAAP financial measures
Non GAAP financial measures (1) (1) Includes charges associated with various restructuring, transaction and other related activity costs associated with Company transformation initiatives and acquisition related programs, impairment charges relating to our investment in AWE ML, along with pre-tax $2
Slide 35: 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 35
Slide 36: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 36
Slide 37: Reconciliation of Jacobs Revenue and EPS Detail
Reconciliation of Jacobs Revenue and EPS Detail 37
Slide 38: Selected financial data
Selected financial data Three Months Ended Twelve Months Ended September October 1, September October 1, (in thousands) 30, 2022 2021 % Change 30, 2022 2021 % Change Total Adjusted EBITDA Adjusted EBITDA $ 350,177 $ 310,102 12.9% $ 1,363,608 $ 1,243,700 Exchange rate effect 11,627 30,357 Constant cu
Slide 39: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics 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 o
Slide 40: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjusted EBITDA, and the resulting calculation of adjusted EBITDA margin, is calculated by adding income tax expense, depreciation expense and adjusted interest expense, and deducting interest income from adjusted net earnings from con
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