Slide 1: Fiscal Fourth Quarter 2021 Earnings Conference Call
Fiscal Fourth Quarter 2021 Earnings Conference Call November 23, 2021 Nurturing our next generation of climate change-makers … driven by our purpose to create a more connected, sustainable world ©Jacobs 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures Certain statements contained in this presentation constitute forward-looking statements as such term is defined in Section 27A To supplement the financial results presented in accordance with generally of the Securities Act
Slide 3: Today's agenda
Today’s agenda Overview ▪ Strategy and performance update ▪ ESG thought leadership and solutions Lines of business review ▪ Critical Mission Solutions ▪ People & Places Solutions ▪ PA Consulting Financial review New Image Coming 11/11 ▪ Q4 and Fiscal 2021 results ▪ Balance sheet and cash flow Outloo
Slide 4: Jacobs: Challenging today. Reinventing tomorrow.
Jacobs: Challenging today. Reinventing tomorrow. Compelling investment thesis ▪ Global infrastructure modernization, climate response and industry digitization ▪ U.S. Infrastructure Investment and Jobs Act to fuel 2H 22 growth and beyond ▪ ESG and digital solutions embedded throughout global offerin
Slide 5: Jacobs + PA: Standing up for sustained climate action at COP26
Jacobs + PA: Standing up for sustained climate action at COP26 5
Slide 6: 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 Decarbonization Natural & Social Capital our generation ▪ End-to-end net zero delivery ▪ Natural capital stewardship ▪ Clean & smart mobility ▪ Ca
Slide 7: Critical Mission Solutions
Critical Mission Solutions Critical Mission Solutions Snapshot Base of recurring revenue; new business pipeline margin-accretive (TTM including The Buffalo Group) ▪ Multi-year enterprise contracts provide long-term stability U.S. / International 83% / 17% ▪ High-value solutions and efficient cost st
Slide 8: People & Places Solutions
People & Places Solutions Executing against high-value opportunities People & Places Solutions Snapshot (Net Revenue Q4 2021) ▪ Deep domain expertise at scale across sectors ▪ Global delivery model benefiting profitability and talent utilization U.S. / International 61% / 39% Strong secular trend al
Slide 9: PA Consulting
PA Consulting PA Consulting Snapshot (Revenue Q4 2021) Deep strategic expertise vital for value enhanced solutions ▪ Trusted partner for UK government’s pandemic response U.S. / UK / Other 13% / 78% / 9% ▪ Growth in US Consumer and Life Sciences Public / Private Sector 45% / 55% Innovation-focused s
Slide 10: Fiscal 2021 Q4 results
Net Zero Labs Fiscal 2021 Q4 results Revenue increased 2% y/y and Pro Forma Net Revenue1 up 6% y/y GAAP Operating Profit (OP) of $252M and OP Margin of 7.0% Adj. OP of $303M (+17%) and Net Revenue Adj. OP Margin of 9.9% (+85 bps) Drawing from our greatest GAAP Net Earnings from Continuing Operations
Slide 11: Fiscal 2021
Low-Carbon Computing Fiscal 2021 Revenue increased 4% y/y and Pro Forma Net Revenue1 up 3% y/y Fiscal Year 2021 Revenue book-to-bill 1.1x GAAP Operating Profit (OP) of $688M and OP Margin of 4.9% Harnessing digital modernization Adj. OP of $1,188M (+23%) and Net Revenue Adj. OP Margin of 10.1% (+130
Slide 12: Segment financials
Segment financials Global Energy Transition $’s in millions Q4 Q4 Y/Y FY20 FY21 Y/Y 2020 2021 Critical Mission Solutions 108 115 7% 372 447 20% Operating Profit as a % of revenue 8.1% 9.1% 100 bps 7.5% 8.8% 130 bps Decarbonizing our energy People & Places Solutions systems and sources is the critica
Slide 13: Balance sheet and cash flow
Fleet Greening Balance sheet and cash flow Continued strong cash flow generation ▪ Q4 cash flow from operations (CFFO) $203M and FCF1 of $176M; includes ~$22M of cash outflows mainly related to new ways of working related costs ▪ FY21 CFFO $726M and FCF1 $633M; mainly impacted by $261M from PA inves
Slide 14: Outlook & Summary
Outlook & Summary Blue Carbon Introducing Fiscal 2022 Outlook ▪ Expect adjusted EBITDA outlook to $1,370 to $1,450M ▪ Expect adjusted EPS outlook to $6.85 to $7.45 Positioned for double-digit adj. EBITDA growth in FY22 and beyond ▪ Expect benefits from U.S. Infrastructure Investment and Jobs Act in
Slide 15: Challenging today and reinventing tomorrow, our commitment to climate action
Challenging today and reinventing tomorrow, our passion and commitment to take immediate action on climate change comes from our leadership and our 55,000 employees who, together, are pushing the limits of what’s possible by creating sustainable solutions that leave no one behind. We do things right
Slide 16: Reimagined Perspectives
Reimagined Perspectives Continue to drive thought leadership ▪ Climate Response: Are we going to be proactive or reactive? ▪ Jacobs is helping build a healthier, safer, more sustainable and resilient future for all Current issue of Reimagined Perspectives focus on ▪ Global Energy Transition Explore
Slide 17: Delivering sustainable solutions
Delivering sustainable solutions Member of Dow Jones Sustainability™ North America Index Sustainable Global Events Decarbonized Construction Climate Risk Assessment Net Zero Energy Campus Expo 2020 Dubai, UAE: program management British Construction Industry award - Carbon Net PSA International, Wor
Slide 18: Environmental, Social & Governance Summary
Environmental, Social & Governance Summary A sustainable business model aligning purpose and vision with both growth and positive impact: ▪ Fully integrates purpose with profit and operationalizes ▪ Achieved 100% renewable energy for sustainability across all aspects of our business our operations i
Slide 19: Selected financial data
Selected financial data $’s in millions Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Backlog 22,671 23,291 23,674 23,818 23,818 25,105 25,571 25,436 26,631 26,631 Revenue 3,360 3,427 3,260 3,520 13,567 3,382 3,548 3,576 3,586 14,093 Net Revenue 2,658 2,786 2,681 2,
Slide 20: Selected financial data
Selected financial data Q2 $’s in millions Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q3 2021 Q4 2021 FY 2021 20211 Critical Mission Solutions Backlog 8,473 9,135 9,066 9,104 9,104 9,683 9,779 9,565 10,589 10,589 Revenue 1,182 1,243 1,211 1,329 4,966 1,295 1,310 1,218 1,264 5,087 Operating Prof
Slide 21: Other operational metrics from continuing operations
Other operational metrics from continuing operations $’s in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Depreciation 22,152 22,566 22,276 24,076 91,070 22,989 25,090 26,405 26,540 101,024 (pre-tax) Amortization of 21,845 22,094 23,135 23,489 90,563 23,15
Slide 22: 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 and acquisition related programs. (2) Includes (a) the removal of pass through revenues and costs for the People & Places Soluti
Slide 23: Non GAAP financial measures
Non GAAP financial measures (1) Includes after-tax charges for the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate of $123.1 million, and other staffing programs of $23.5 million and $14.4 million of other restructuring, transaction and other charges. (2) Incl
Slide 24: 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 and acquisition related programs, impairment charges relating to our investment in AWE, along with pre-tax $297.8 million in PA
Slide 25: Non GAAP financial measures
Non GAAP financial measures (1) Includes after-tax charges for the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate of $123.1 million, and other staffing programs of $23.5 million, and $101.6 million of other restructuring, transaction and other charges. (2) In
Slide 26: Reconciliation of net earnings from continuing operations to adjusted EBITDA
Reconciliation of net earnings from continuing operations attributable to Jacobs to adjusted EBITDA 26
Slide 27: Reconciliation of Jacobs free cash flow
Reconciliation of Jacobs free cash flow 27
Slide 28: Reconciliation of Jacobs pro forma net revenue
Reconciliation of Jacobs pro forma net revenue This presentation includes comparisons of current period net revenue to prior periods on a pro forma basis. Prior fiscal periods are calculated as if all acquisitions had occurred prior to the comparable periods and excludes the impact from an extra wee
Slide 29: Non-GAAP financial measures
Non-GAAP financial measures 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 operations, adjusted operating