Slide 1: Jacobs Fiscal 2023 Fourth Quarter & Full Year Results
Jacobs Fiscal 2023 Fourth Quarter & Full Year Results November 21, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of Non-GAAP Financial Measures and Operating Metrics 1995. Forward-looking statemen
Slide 3: Today's agenda
Today’s agenda Overview Transaction review Performance overview Financial review Q4 and Fiscal 2023 results Q4 Segment review Balance sheet and cash flow Outlook & Summary Q&A 3 ©Jacobs 2023
Slide 4: Transaction Rationale
Transaction Rationale We have announced an agreement to spin and merge our CMS and C&I businesses with Amentum ▪ Jacobs to spin-off and merge its CMS business with Amentum, creating a new independent, publicly-traded company ▪ Transaction perimeter includes Jacobs CMS segment plus the closely relate
Slide 5: Transaction Summary
Transaction Summary ▪ Reverse Morris Trust that is intended to be tax-free to shareholders for U.S. federal income tax purposes ▪ Jacobs and Jacobs shareholders to own up to 63% of combined company – Jacobs shareholders: 51% Transaction – Jacobs company retained stake: 7.5% - 12% based on achievemen
Slide 6: Transformation to less volatile and higher value services and solutions
Transformation to less volatile and higher value services and solutions PA Consulting Government Services 7% PA Consulting 18% Energy, Chemicals Critical and Resources CMS/C&I Infrastructure 54% 34% 1 1 FY14 FY23 FY25E $12.7B $16.3B Standalone Critical Critical Infrastructure Infrastructure 28% 59%
Slide 7: Strategy: Boldly Moving Forward; Track record of execution
Q4 2023 Segment Adj. Net Revenue Strategy: Boldly Moving Forward PA Consulting, 8% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage ▪ Diverse sector exposure with recurring revenue provides substantial visibility Divergent People & Places Solutions, 7% Solutions, 49%
Slide 8: Delivering sustainable solutions
Delivering sustainable solutions City of Farmington Water & Wastewater Argon Data Solutions: Boston Water & Sewer EDF Nuclear Operations: Project Management Copenhagen Metro Operations Utilities Commission Sewer Assessments Resources Framework & Maintenance Farmington, New Mexico, USA Boston, Massac
Slide 9: P&PS playing in key sectors aligned to critical infrastructure and sustainability
P&PS playing in key sectors aligned to critical infrastructure and sustainability Transportation Water Cities & Places Energy & Environmental Health and Life Sciences Advanced Manufacturing ▪ Market leading position in ▪ Unique OneWater end-to- ▪ Integrating data, technology, ▪ Responding to challen
Slide 10: Jacobs holds leading positions
Jacobs holds leading positions Overall Infrastructure Health & Life Sciences № 1 Top 500 in Design Firms №1 Wastewater Treatment №1 Pharmaceuticals № 1 Top 100 Pure Designers №1 Sanitary & Storm Sewers №1 Healthcare № 1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste Professional Services
Slide 11: Fiscal 2023 Q4 results
Fiscal 2023 Q4 results Revenue up 10.5% y/y, adjusted net revenue increased 8.9% y/y and up 7.3% in constant currency GAAP Operating Profit (OP) of $278M and OP Margin of 6.5% Adj. OP of $383M up 10% and up 9% in constant currency; Adj. OP Margin (% of Adj. Net Revenue) of 11% GAAP Net Earnings from
Slide 12: Fiscal 2023 results
Fiscal 2023 results Revenue up 10% y/y, adjusted net revenue up 7% y/y GAAP Operating Profit (OP) of $1,075M and OP Margin of 6.6% Adj. OP of $1,433M up 9% and up 11% in constant currency; Adj. OP Margin of 10.8% GAAP Net Earnings from Continuing Operations of $667M GAAP EPS from Continuing Operatio
Slide 13: Segment financials
Segment financials $’s in millions Q4 2022 Q4 2023 Y/Y Y/Y CC2 People & Places Solutions Operating Profit 229 256 11.7% 10.9% as a % of adj. net revenue1 14.9% 15.0% 16 bps Critical Mission Solutions Operating Profit 81 103 26.4% 24.0% as a % of revenue 7.0% 8.3% 128 bps PA Consulting Operating Prof
Slide 14: Segment financials
Segment financials $’s in millions 2022 2023 Y/Y Y/Y CC2 People & Places Solutions Operating Profit 825 958 16.1% 19% as a % of adj. net revenue1 13.6% 14.6% 100 bps Critical Mission Solutions Operating Profit 356 378 6.4% 8% as a % of revenue 8.1% 8.1% (7 bps) PA Consulting Operating Profit 232 237
Slide 15: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q4 cash flow from operations (CFFO) $219M and FCF1 of $180M ▪ Generated $837M in FY23 FCF resulting in YTD 126% FCF conversion of Net Income ▪ 104% underlying FY23 FCF conversion to adjusted net income; expect >100% underlying FY24 conversion
Slide 16: Cost Optimization Plan
Cost Optimization Plan Streamlining operating model and eliminating stranded costs Driving >300 bps in margin expansion ▪ Reducing corporate unallocated costs from $60M Standalone Jacobs Adj. EBITDA Margin ~$90M of Cost per quarter to $50M per quarter post-separation1 Optimization ▪ $50M in costs re
Slide 17: Outlook & Summary
Outlook & Summary Initiating Fiscal 2024 Outlook1 Full Year 2024 Assumptions FY23 FY24E2 Y/Y Growth (at mid-point) ▪ FY 2024 fully diluted average share FY Adjusted EBITDA $1.44B $1.53B - $1.60B 9% count: ~127M FY Adjusted EPS $7.20 $7.70 - $8.20 10% ▪ Annual CAPEX: ~1% of net revenue ▪ Depreciation
Slide 18: Appendix
Appendix
Slide 19: 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. 19 ©Jacobs 2023
Slide 20: Debt & interest overview
Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of September 29, 2023 Tranche 9/29 Debt Q3 ’23 Rate Q4 ’23 Rate Revolver ($2.25B) $10M 6.5% 6.7% $37.1 $33.0 $36.0 $36.1 USD Term Loans $197M 6.5% 6.7% $31.1 $21.6 $25.1 GBP Term Loans $799M 6.2% 6.5% Total Floating $1,006
Slide 21: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY $’s in millions (unaudited) 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 People and Places Solutions Backlog 16,930 16,950 17,527 17,014 17,014 17,243 17,562 17,498 17,345 17,345 Revenue 1,921 2,163 2,223 2,228 8,535 2,227 2,345 2,470 2,512
Slide 22: Environmental, Social & Governance (ESG) at Jacobs
Environmental, Social & Governance (ESG) at Jacobs Aligned with the United Nations Sustainable Development Goals, Jacobs is focused on creating positive social and economic impact while protecting our environment and improving resilience. ▪ Since 2019 we have voluntarily reported on a wide range of
Slide 23: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics In this presentation, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Adjusted Net revenue
Slide 24: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Free cash flow is calculated using the reported statement of cash flows, net cash
Slide 25: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 25 ©Jacobs 2023
Slide 26: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 26 ©Jacobs 2023
Slide 27: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 27 ©Jacobs 2023
Slide 28: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 28 ©Jacobs 2023
Slide 29: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 29 ©Jacobs 2023
Slide 30: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 30 ©Jacobs 2023
Slide 31: Reconciliation of net earnings to adjusted EBITDA and free cash flow
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA and free cash flow 31 ©Jacobs 2023
Slide 32: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 32 ©Jacobs 2023
Slide 33: Reconciliation of Jacobs Constant Currency Adj. Net Revenue
Reconciliation of Jacobs Constant Currency Adj. Net Revenue $’s in millions Adjusted Net Revenue impact of Constant Currency Consolidated People & Places Critical Mission Divergent PA Consulting Line of Business Solutions Solutions Solutions Q4'23 Actual Revenue $3,467 $1,703 $1,236 $288 $240 Curren
Slide 34: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit Adj. Unalloc. Corp. $’s in millions Adj. OP impact of Constant Currency Costs impact of Constant Currency Consolidated People & Critical PA Divergent Line of Places Mission Corporate Functions Consulting Solutions Business Solution
Slide 35: Copyright notice
Copyright notice Important © Copyright Jacobs 2023 . All rights reserved. The content and information contained in this presentation are the property of the Jacobs Group of companies (“Jacobs Group”). Publication, distribution, or reproduction of this presentation in whole or in part without the wri
Slide 36: Challenging today. Reinventing tomorrow.
vacobs Challenging today. Reinventing tomorrow.