Slide 1: Delivering Advanced Solutions for a More Connected, Sustainable World
Investor Presentation February 2018 Delivering Advanced Solutions for a More Connected, Sustainable World Fiscal 2nd Quarter Earnings Conference Call – May 8th
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 ‾ Discuss Core Values ‾ Q2 Highlights ‾ Line of Business Review ‾ CH2M Integration Update Financials Review ‾ Jacobs Q2 Results ‾ Balance Sheet ‾ Capital Allocation Summary and FY18 Outlook 3
Slide 4: Strong Focus on Core Values
Strong Focus on Core Values 2018 Catalyst Awards Dinner in New York to celebrate exceptional efforts to advance women in business Focus on Values Directly Translates Into Superior Business Results 4
Slide 5: On Track for a Strong Fiscal 2018
On Track for a Strong Fiscal 2018 Delivering Profitable Growth Continued Focus on Driving Our Strategy Maintain winning culture of safety, project excellence and client centricity Drive increased profit margin across all lines of business Grow profitably by pursuing higher margin opportunities
Slide 6: Strong Backlog Growth
Strong Backlog Growth Pro Forma Q2 backlog up 9% year over year1 Higher Margin Professional Services Backlog Continues to be a Driver of Growth Backlog by Line of Business 26.2 26.5 8.9 8.9 18.5 $6.9 $8.8 Aerospace, Technology, 6.1 Environmental and Nuclear Buildings, Infrastructure 17.7 and Advance
Slide 7: Aerospace, Technology, Environmental and Nuclear (ATEN)
Aerospace, Technology, Environmental and Nuclear (ATEN) Share Gains Driven By Unique Delivery Model Q2 ATEN Snapshot Q2 Revenue by End Market One of the largest government services providers US/International 85% / 15% Gaining share by leveraging strong technical expertise, Government ~85% locali
Slide 8: Buildings, Infrastructure and Advanced Facilities (BIAF)
Buildings, Infrastructure and Advanced Facilities (BIAF) Q2 BIAF Snapshot Q2 Revenue by End Market Strong Global Infrastructure Demand U.S. infrastructure poised to accelerate driven by Omnibus US/International 54% / 46% Spending Bill and state/local funding measures U.K. transportation market r
Slide 9: Energy, Chemicals and Resources (ECR)
Energy, Chemicals and Resources (ECR) Energy Asia and Middle East clients investing to meet local fuel requirements Q2 ECR Snapshot Q2 Revenue by End Market Rising U.S. and Canadian oil production is continuing to create opportunity for logistics infrastructure in the region US/International 65%
Slide 10: CH2M Integration On Track
CH2M Integration On Track CH2M Acquisition Off To a Great Start Employees Energized and Cultures Aligning Well New organizational structure fully implemented worldwide CH2M voluntary attrition remains below pre-acquisition levels High Confidence in Cost Synergies All major cost synergy work st
Slide 11: FY18Q2 Results
FY18Q2 Results Strong Pro Forma Revenue Growth Revenue increased 16%1 compared with pro forma Jacobs + CH2M prior year period Q2 GAAP Operating Profit Margin 3.7%, Adjusted Op Margin 5.6%2 GAAP EPS $0.34 Adjusted EPS of $1.00 up 28% y/y2 Includes a headwind from a legal matter of $0.09 Excludes
Slide 12: Revenue and Gross Margin %
Revenue and Gross Margin % $4.5 $3.9 25% $4.0 20% $3.5 18% 18% 18% 18% 20% 16% $3.0 $2.8 $2.5 15% $2.0 10% $1.5 $2.6 $2.7 $2.6 $2.8 $2.3 $2.5 $1.0 5% $0.5 $0.0 0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Revenue Revenue from CH2M Gross Margin % Revenue Step Up at an Accretive Gross Margin FY18Q1 revenue
Slide 13: FY18Q2 Jacobs LOB Segment Financials
FY18Q2 Jacobs LOB Segment Financials Operating OP Margin Adj. OP Margin Line of Business vs. FY17Q24 Profit vs. FY17Q24 vs. PF FY17Q23 5.5% 7.1%1 Aerospace, Technology, Environmental and Nuclear (ATEN) $61 M +38% -180 bps +90 bps 7.8% 7.8% Buildings, Infrastructure and Advanced Facilities (BIAF) $13
Slide 14: CH2M Acquisition Costs & Synergies
CH2M Acquisition Costs & Synergies CH2M Cost Synergies On Track On Track to Achieve CH2M Cost Synergies Approximately 1/3 of targeted $150 M estimated run-rate savings achieved at end of Q2 Targeting to achieve 50% of $150 M of synergies on run-rate basis by end of year Continue to expect $50
Slide 15: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Near Term Focus to De-Lever Strong Cash Flow Expected in 2H18 Approximately $250 million in cash used in Q2 for CH2M related payments including final deal consideration payment Expect de-leveraging in the second half 2018 Healthy Balance Sheet Maintained En
Slide 16: Summary and FY18 Outlook
Summary and FY18 Outlook Executing Well Against 3-Year Strategy On Track to Execute Against 3 Year Strategy Maintain culture of safety, execution and innovation Financial discipline to drive margin improvement Leverage combined innovation to fuel profitable organic growth Increasing FY18 Outlo
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 ~$15 B Net Debt $1.7 B Q2 Gross Margin 20% Quarterly Dividend $0.15 Q2 $8.8 Backlog $6.9 BIAF ATEN FY18E Adj. EPS $4.00 to $4.403 Q2 U.S./Int’l Mix ~60/40 $26.5 B ECR $10.9 FY18E Share Count 139 M Employees ~77,000 Three Global Lines