Slide 1: Fourth Quarter & Fiscal Year 2023 Results
FOURTH QUARTER & FISCAL YEAR 2023 RESULTS September 28, 2023
Slide 2: Forward Looking Statement
Forward Looking Statement Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for the fourth quarter of and full fiscal year 2023; our guidance for future financial performance in our first quarter of fiscal y
Slide 3: Fourth Quarter & FY 2023 Income Highlights
Fourth Quarter & FY 2023 Income Highlights THREE MONTHS ENDED FISCAL YEAR ENDED AUGUST 31, AUGUST 31, 2023 2022 2023 2022 (In millions, except for per share data) Net revenue $8,458 $9,030 $34,702 $33,478 U.S. GAAP operating income $441 $409 $1,537 $1,393 U.S. GAAP net income $155 $315 $818 $996 U.S
Slide 4: Fourth Quarter FY 2023 Segment Results
Fourth Quarter FY 2023 Segment Results DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue flat y/y ▪ Core margin* (non-GAAP) of 6.1% ELECTRONICS MANUFACTURING SERVICES (EMS) ▪ Net Revenue decrease of 13% y/y EMS $8.5B 48% DMS ▪ Core margin* (non-GAAP) of 5.2% REVENUE 52% TOTAL COMPANY ▪ Net Reve
Slide 5: Secular Trends Driving Growth Across Multiple End-Markets
Secular Trends Driving Growth Across Multiple End-Markets Revenue by End-Market $ in billions FY22 FY23 Y/Y $ in billions FY22 FY23 Y/Y Auto & Transportation $3.1 $4.4 42% Digital Print & Retail $3.1 $3.1 0% Healthcare & Packaging $5.0 $5.6 12% Industrial & Semi-Cap $4.0 $4.4 10% Connected Devices $
Slide 6: Fiscal 2023 Cashflow Highlights
Fiscal 2023 Cashflow Highlights FISCAL YEAR ENDED AUGUST 31, ($ millions) 2023 Net cash provided by operating activities $1,734 Acquisition of property, plant and equipment ($1,030) Proceeds and advances from sale of property, $322 plant and equipment Net capital expenditures1 ($708) Adjusted free c
Slide 7: Jabil's 5-Yr Financial Performance
Jabil’s 5-Yr Financial Performance What We’re Doing is Working CORE OP INCOME & CORE OP MARGIN1 CORE EPS1 FREE CASH FLOW1 (In millions) (In millions) $1,026 $1,733 $1,543 $8.63 $810 $7.65 $1,241 5.0% $640 4.6% $5.61 $503 $461 $877 $864 4.2% $2.98 $2.90 3.5% 3.2% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY
Slide 8: 6th Annual Investor Briefing
6th ANNUAL INVESTOR BRIEFING September 28, 2023
Slide 9: No Changes in Roadmap
No Changes in Roadmap Evolutionary, not Revolutionary FINANCIAL PRIORITIES GROWTH DRIVERS AI Cloud Data Centers Electric Vehicles Renewables • Profitable Revenue Growth • Margin Expansion • Free Cash Flow Growth • EPS Growth Energy Storage Digital Health Automation/AI/ML • Shareholder-centric Capita
Slide 10: Key Updates Today
Key Updates Today MOBILITY UPDATE TO FINANCIAL DIVESTITURE REPURCHASE OUTLOOK AUTHORIZATION 10
Slide 11: Business Update
Business Update September 28, 2023 Kenny Wilson
Slide 12: FY23 Year in Review
PERFORMANCE HIGHLIGHTS FY23 Y/ Y GROWTH FY23 RECOGNITION YEAR IN TIME’s Newsweek: 100% on the 4% 12% World’s Best America’s Disability:IN Equality REVIEW Companies Most Responsible Index Report 2023 — of 2023 Companies Third Year in a Row REVENUE CORE OPERATING INCOME 1 ENVIRONMENTAL, SOCIAL AND GOV
Slide 13: 10 Year Journey
2023 10 Year Journey Shifted to AI Datacenter Growth and Diversification Divestiture of Mobility Business Signed JJMD Agreement Entered EV Business Go Bucs! 2013 Capital Scaled Allocation Established Acquired Renewable Framework Cloud Nypro Energy Business Business Healthcare 13
Slide 14: Mobility Divestiture
Mobility Divestiture Signed definitive agreement to divest Mobility business for $2.2 billion Strategic Rationale • Accelerates ability to invest and expand in key secular growth areas: o Electric Vehicles, Healthcare, Renewable Energy, and AI cloud data centers • Enhances Jabil’s shareholder-centri
Slide 15: Thank You
xi SWIFT Coder ~ sent Program.”
Slide 16: Value Creation For Shareholders
Value Creation For Shareholders Financial Priorities EXPAND INCREASE GENERATE RETURN CAPITAL OPERATING EARNINGS STRONG CASH TO MARGINS PER SHARE FLOWS SHAREHOLDERS ALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY See U.S. GAAP to non-GAAP definitions located at https://investors.ja
Slide 17: End-Market Update
End-Market Update Fred McCoy
Slide 18: Secular Trends Driving Growth in Key End-Markets
Secular Trends Driving Growth in Key End-Markets Revenue Growth by End-Market Electric Vehicles Y/Y Revenue Growth FY24E Industrial & Semi-Cap 20% Energy Storage Auto & Transportation 20% Healthcare & Packaging 9% Cloud Digital Print & Retail 0% Networking & Storage -6% Renewables 5G Wireless & Clou
Slide 19: Our FY 2024 Portfolio: Industrial & Semi-Cap
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Industrial & Semi-Cap FY24E 20% Infrastructure Energy Storage Building Technology, Data Energy Storage Systems, EV Charging Centers, Metering Residential & Grid Scale Energy Storage Systems Energy Management Battery Modules Power & Controls System Enclosures
Slide 20: Our FY 2024 Portfolio: Automotive & Transportation
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Automotive & Transportation FY24E 20% ADAS/Autonomous Vehicle Connectivity Vision Systems Driver Information Connectivity Electrification Central Compute Software-defined Vehicle / Centralized Architecture Electric Vehicle Charging Solutions Traction Motor Dr
Slide 21: Our FY 2024 Portfolio: 5G Wireless & Cloud
Our FY 2024 Portfolio Y/Y REVENUE GROWTH 5G Wireless & Cloud FY24E -11%1 5G Wireless Carrier-Grade Radios Integrated Antenna Subsystems Integrated Optical Interfaces Optical Transceivers Optical Line Termination Broadband access WDM Systems Cloud AL/ML Solutions Liquid cooled infrastructure Data Cen
Slide 22: Our FY 2024 Portfolio: Healthcare & Packaging
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Healthcare & Packaging FY24E 9% Diagnostics Clinical Chemistry Molecular Lab Genomics Life Sciences Test & Measurement Orthopedics, Precision Health & Medical Devices Cardiovascular Diabetes Care Endo Surgery Patient Monitoring / Medication Management Orthope
Slide 23: Our FY 2024 Portfolio: Digital Print & Retail
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Digital Print & Retail FY24E 0% Digital Print Additive Materials 3D Printers Industrial Printers Retail Contactless & Biometric Payments Frictionless Checkout & Self Service AI & Data Analytics Omnichannel Shopping Warehouse Automation E-Commerce & Fulfillmen
Slide 24: Our FY 2024 Portfolio: Networking & Storage
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Networking & Storage FY24E -6% Optical Switches Network Switches High-performance data center Telecom Routers On premises storage Hybrid cloud storage 24
Slide 25: Our FY 2024 Portfolio: Connected Devices
Our FY 2024 Portfolio Y/Y REVENUE GROWTH Connected Devices FY24E -15% Mobile Devices AR/VR Action Cameras Safety & Security Consumer Robotics Optics Commercial Drones Smart Home & Appliance Major Appliances Small Appliances Home Gym Outdoor Living Floor Care Personal Care Appliances 25
Slide 26: Secular Trends Driving Growth in Key End-Markets
Secular Trends Driving Growth in Key End-Markets Revenue by End-Market $ in billions FY23 FY24E $ in billions FY23 FY24E Auto & Transportation $4.4 $5.3 Digital Print & Retail $3.1 $3.1 Healthcare & Packaging $5.6 $6.1 Industrial & Semi-Cap $4.4 $5.3 Connected Devices $4.0 $3.4 5G Wireless & Cloud $
Slide 27: Finance Update
«FFP = STOTT. es Finance Update Mike Dastoor
Slide 28: Finance Update Key Messages
Finance Update 3 Key Messages MOBILITY CAPITAL FINANCIAL DIVESTITURE ALLOCATION OUTLOOK 28
Slide 29: Expected Net Proceeds Transaction
Expected Net Proceeds Transaction Source and Use of Funds Source of Funds $ in Millions Use of Funds • Expand buyback authorization through a series of TOTAL accelerated share repurchases Proceeds $2,200 • Drive growth in key secular end-markets Total costs & Tax -$300 • Accelerate future core opera
Slide 30: Value Creation For Shareholders
Value Creation For Shareholders Financial Priorities EXPAND INCREASE GENERATE RETURN CAPITAL OPERATING EARNINGS STRONG CASH TO MARGINS PER SHARE FLOWS SHAREHOLDERS ALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY See U.S. GAAP to non-GAAP definitions located at https://investors.ja
Slide 31: Our FY 2024 Portfolio: Diversified and Resilient
Our FY 2024 Portfolio Diversified and Resilient Digital Print & Retail Healthcare & Packaging Y/Y Revenue Growth FY24E Networking & Storage Industrial & Semi-Cap 20% Auto & Transportation 20% Healthcare & Packaging 9% REVENUE Connected Devices Auto & F Y 2 4 E Digital Print & Retail 0% Transportatio
Slide 32: FY24 Modeling Assumptions
FY24 Modeling Assumptions • Softness in consumer markets continues • Strong growth in key end-markets continues: • Renewable energy infrastructure • Electric vehicles • Healthcare • AI Cloud • Networking & Storage optimization • AI Cloud 1H FY24 customer-controlled consignment shift • Shift in work
Slide 33: First Quarter FY24 Guidance
First Quarter FY24 Guidance Segment Revenue Guidance Q1 FY23 Q1 FY24E Diversified Manufacturing Services $5.1B $5.1B Electronics Manufacturing Services $4.5B $3.6B Consolidated Guidance Q1 FY24E Net revenue $8.4B - $9.0B U.S. GAAP operating income $423 - $483M U.S. GAAP diluted earnings per share $2
Slide 34: FY24 Revenue Drivers
FY24 Revenue Drivers Secular Trends Driving Growth in Key End-Markets $ in billions Revenue by End-Market FY23 FY24E Y/Y % ∆ Industrial & Semi-Cap $4.4 $5.3 20% Auto & Transportation $4.4 $5.3 20% Healthcare & Packaging $5.6 $6.1 9% Digital Print & Retail $3.1 $3.1 0% Networking & Storage $3.1 $2.9
Slide 35: Continued Mix Shift in Targeted Areas
Continued Mix Shift in Targeted Areas Driving Margin Expansion Core Operating Income & Margin1 Core Operating Income ($ millions) Margin Drivers $1,733 $1,543 1. Growth in higher-margin end- markets $1,241 5.3%-5.5% 5.0% 2. Continued innovations and $877 $864 4.6% 4.2% efficiencies across our factor
Slide 36: Net Capex
Net Capex Disciplined Investment Net Capex1 Disciplined Investments ($ millions) Aligned with Profitable Growth $787 $796 $793 $841 1. Growth in secular end- $708 markets 3.1% 2. Innovation: 2.9% 2.7% • Factory automation 2.5% • Engineering capabilities 2.2%-2.5% 2.0% • Supply chain tools and capabi
Slide 37: Solid Liquidity
Solid Liquidity Consistent Free Cash Flow Generation Free Cash Flow1 ($ millions) Drivers of Future Free Cash Flow $1,026 $1,000+ $810 1. Earnings expansion $640 2. Working capital efficiencies $503 $461 3. Disciplined investment FY19 FY20 FY21 FY22 FY23 FY24E 1 See U.S. GAAP to non-GAAP definitions
Slide 38: Financial Flexibility
Financial Flexibility Balanced Capital Structure ($ in millions) Financial Strength 3000 1. Balance sheet debt of $2.9B, as of August 31, 2023 2500 2. Credit Agency 2000 Ratings/Outlook2 1500 • Moody’s: Baa3 / Stable 1000 • S&P: BBB- / Stable 500 • Fitch: BBB- / Stable 0 2024 2025 2026 2027 2028 202
Slide 39: Capital Allocation Framework
Capital Allocation Framework Supported by a $2.5 Billion share Repurchase Authorization Organic Capex VALUE CREATION Capability M&A Shareholder Return FOR OUR Investment SHAREHOLDERS • Capex investments in • Tuck-in acquisitions to • $2.5 billion share secular end-markets bolster capabilities repurc
Slide 40: Our Outlook
Our Outlook FY24 Financial Plan Dependent on Timing of Transaction Close NET REVENUE CORE OP MARGIN 1 CORE EPS 1 FREE CASH FLOW 1 $ 33.0 - $34.0 5.3% - 5.5% $ 9.30 - $9.70 $1+ BILLION BILLION MANAGEMENT’S OUTLOOK FOR FY24 1 See U.S. GAAP to non-GAAP definitions and reconciliations located at https:/
Slide 41: FY25 Management Outlook
FY25 Management Outlook What We’re Doing is Working 5.1% 5.6%+ 1100 $10.65+ 4.9% 1000 4.7% 900 5.0% 4.5% 800 $8.63 4.3% 700 4.1% 600 3.9% 500 3.7% 400 3.5% 300 FY23 FY25E FY23 FY25E CORE OPERATING MARGIN1 CORE EARNINGS PER SHARE1 • Growth in higher-margin end-markets • Higher Profitability • Continu
Slide 42: Made Possible.
MADE POSSIBLE. JABIL | MAdEBossie
Slide 43: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP TO NON-GAAP RECONCILIATIONS
Slide 44: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. & SUBSIDIARIES OPERATING INCOME, EBITDA AND NET INCOME NON-GAAP RECONCILIATION (in millions, except for per share data) (Unaudited) Three Months Ended Fiscal Year Ended August 31, 2023 August 31, 2022 August 31, 2023 August 31, 2022 Operating income (U.S. GAAP) $ 441 $ 409 $ 1,537 $ 1,393