Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Bernstein's 2nd Annual Industrials Forum (November 2023)

52 slides from Jacobs Solutions's conference presentation, Nov 30, 2023

1. Slide 1: Jacobs Investor Presentation

   Jacobs Investor Presentation November/December 2023

2. 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 Non-GAAP Financial Measures and Operating Metrics Act of 1995. Forward looking statemen

3. Slide 3: Portfolio Overview FY23: Jacobs today

   Portfolio Overview FY23 Jacobs today By Sector1, 2 Advanced By Region2 Manufacturing 5% APAC & Other ▪ Workforce: ~60,000 Cities & Places 9% 8% ▪ Currently operates across four reporting segments that provide Infrastructure UK & 32% a full spectrum of professional services including consulting, Spac

4. Slide 4: 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%

5. Slide 5: Three needle-moving accelerators catalyze additional growth across all markets

   Three needle-moving accelerators catalyze additional growth across all markets Infrastructure ▪︎ National Security ▪︎ Advanced Manufacturing ▪︎ Health & Life Sciences ▪︎ Energy & Environment ▪︎ Cities & Places ▪︎ Space 5 ©Jacobs 2023

6. Slide 6: 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

7. Slide 7: 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

8. Slide 8: People & Places Solutions – Infrastructure & sustainability leader

   People & Places Solutions – Infrastructure & sustainability leader Approx. revenue by sector (FY 2023) Business Breakdown FY’23 Business breakdown Gross Revenue FY’22 revenue $9,554 million Advanced Adj. Net Revenue* $6,567 million Manufacturing, (% of Total Adj. Net Revenue) (49%)million $8,570 7%

9. Slide 9: Divergent Solutions – Innovative data and digital solutions

   Divergent Solutions – Innovative data and digital solutions Approx. revenue1 by sector (FY 2023) Business breakdown FY’23 Revenue $947 million Adj. Net Revenue* $882 million Commercial, 5% (% of Total Adj. Net Revenue*) (7%) Space, 14% Infrastructure, US / International 97% / 3% 3% Public / Private

10. Slide 10: PA Consulting – Differentiated growth through ingenuity

    PA Consulting – Differentiated growth through ingenuity Approx. revenue by sector (FY 2023) Business breakdown FY’23 $1,158 million Revenue (% of Total Adj. Net Revenue) Transport, 9% (9%) Health & Life US / International 12% / 88% (76% UK) Energy & Utilities, Sciences, 16% 11% Public / Private 52%

11. Slide 11: Critical Mission Solutions – Poised to thrive independently

    Critical Mission Solutions – Poised to thrive independently Approx. revenue by sector (FY 2023) Business breakdown FY’23 $4,693 million Revenue (% of Total Adj. Net Revenue) (35%) Infrastructure, 7% Advanced Manufactureing, 2% US / International 76% / 24% (Telecom) (Auto test and diagnostics) Public

12. Slide 12: Creating a New Government Services Leader

    Creating a New Government Services Leader: Jacobs To Spin-off and Merge Its CMS and C&I Businesses with Amentum ©Jacobs 2023

13. Slide 13: Transaction rationale

    Transaction rationale ▪ 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 related Cyber and Intelligence unit (“C&I”) from Divergent Solutions (“DVS”) ▪ Culmination of

14. Slide 14: 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

15. Slide 15: Combination with Amentum

    Combination with Amentum Merger Partner / Combined Company Transaction Structure ▪ ~$7.9B revenue / ~8% Adj. EBITDA margin business ▪ >40% focused on high-growth, high margin intel and science and technology sectors Amentum ▪ Strong momentum in backlog, revenue and profit growth ▪ <$4B current net d

16. Slide 16: FY2023 Separation Roadmap

    FY2023 Separation Roadmap ▪ Separation of CMS/C&I for FY23 would result in 150bps margin uplift FY2023 CMS/C&I FY2023 Actual Separation Adjusted Adj. Net Revenue* $13,301 ($5,438) $7,863 ▪ Impact before any further benefit from Cost Optimization Plan Adj. EBITDA* 1,436 (465) 971 Margin % 10.8% 8.6%

17. Slide 17: Fiscal 2023 Q4 & Full Year Results

    Fiscal 2023 Q4 & Full Year Results

18. Slide 18: 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%

19. Slide 19: 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

20. Slide 20: 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

21. Slide 21: 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

22. Slide 22: 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

23. Slide 23: 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

24. Slide 24: Balance sheet and capital allocation

    Balance sheet and capital allocation ▪ Committed to an investment grade credit profile ▪ CMS/C&I transaction benefits balance sheet − Dividend proceeds from CMS/C&I separation used to pay down debt − Additional benefit from disposition of Jacobs retained stake within 12 months of transaction close ▪

25. Slide 25: Cost Optimization Plan and Outlook

    Cost Optimization Plan and Outlook ©Jacobs 2023

26. Slide 26: Cost Optimization Plan

    Cost Optimization Plan Streamlining operating model and eliminating stranded costs Driving >300 bps in margin expansion ▪ $40M corporate unallocated cost reduction Standalone Jacobs Adj. EBITDA Margin Over 300 bps of ~$90M of Cost initiative expected Adj. EBITDA Optimization ▪ $50M in costs related

27. Slide 27: Cost Optimization Plan

    Cost Optimization Plan FY2023 FY2024E-FY2025E Commentary + Further Upside As- Adjusted to Elimination of Transitional Net Operating Operating from Additional ▪ At least 300bps of Reported Exclude Overhead Costs Model Leverage Operating margin improvement Results CMS/C&I Efficiencies Leverage in FY24

28. Slide 28: 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 ▪ Annual CAPEX: ~1% of net revenue FY Adjusted EPS $7.20 $7.70 - $8.20 10% ▪ Depreciation

29. Slide 29: FY24 EBITDA and EPS Guidance Recap

    FY24 EBITDA and EPS Guidance Recap Fiscal 2024 Outlook Illustrative FY24 Excl. Transitional Overhead FY24 Guidance1 Transitional Overhead Costs2 FY23 (% Growth) Costs (% Growth) FY Adjusted EBITDA $1.44B $1.53B - $1.60B $40M $1.57B - $1.64B 6% - 11% 9% - 14% FY Adjusted EPS $7.20 $7.70 - $8.20 $0.25

30. Slide 30: Appendix

    Appendix

31. Slide 31: 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

32. Slide 32: 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

33. Slide 33: 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

34. Slide 34: 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

35. Slide 35: 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. 35

36. Slide 36: 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

37. Slide 37: 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. Amounts in the follow

38. Slide 38: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 38 ©Jacobs 2023

39. Slide 39: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 39 ©Jacobs 2023

40. Slide 40: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 40 ©Jacobs 2023

41. Slide 41: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 41 ©Jacobs 2023

42. Slide 42: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 42 ©Jacobs 2023

43. Slide 43: Reconciliation of GAAP to Adjusted Results

    Reconciliation of GAAP to Adjusted Results 43 ©Jacobs 2023

44. Slide 44: Reconciliation of adjusted net earnings to adjusted EBITDA and free cash flow

    Reconciliation of adjusted net earnings from continuing operations attributable to Jacobs to adjusted EBITDA and free cash flow 44 ©Jacobs 2023

45. Slide 45: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs

    Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 45 ©Jacobs 2023

46. Slide 46: 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

47. Slide 47: 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

48. Slide 48: Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment

    Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment 48 ©Jacobs 2023

49. Slide 49: Reconciliation of US GAAP OP to Adj. EBITDA

    Reconciliation of US GAAP OP to Adj. EBITDA (a) (b) (c) (d) (e) = (b) + (c) + (d) (f) = (a) - (e) Total Jacobs Total CMS Total DVS DVS RemainCo CMS/C&I iJacobs GAAP OP from continuing Ops 1,075 378 82 (13) 447 629 Add-back: Restructuring, Transactions and Other (Charges) Recoveries 136 - - - - 136 A

50. Slide 50: Reconciliation of US GAAP Revenue to Adjusted Net Revenue

    Reconciliation of US GAAP Revenue to Adjusted Net Revenue (a) (b) (c) (d) (e) = (b) + (c) + (d) (f) = (a) - (e) Total Jacobs Total CMS Total DVS DVS RemainCo CMS/C&I iJacobs Revenues from External Customers 16,352 4,693 947 (140) 5,500 10,852 Pass Through Revenue (3,051) - (64) 3 (62) (2,989) Adjust

51. Slide 51: 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

52. Slide 52: Challenging today. Reinventing tomorrow.

    vacobs Challenging today. Reinventing tomorrow.

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