Slide 1: Jacobs Fiscal 2023 First Quarter Results
Jacobs Fiscal 2023 First Quarter Results February 7, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Non-GAAP Financial Measures and Operating Metrics Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private To supplement the financial results presented in accordance with S
Slide 3: Today's agenda
Today’s agenda ▪ Overview ” − Performance overview Our focus on inclusion helps us − ESG commitment unleash our global talent to deliver − Strategy review excellence to our clients. We are proud that our employees have ▪ Financial review embraced the power of − Q1 Fiscal 2023 results “togetherness”
Slide 4: Strategy: Boldly Moving Forward; Track record of execution
Q1 2023 Segment Net Revenue Strategy: Boldly Moving Forward PA Consulting, 9% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage ▪ Diverse sector exposure with recurring revenue provides substantial visibility Divergent People & Places Solutions, 6% Solutions, 50% ▪ Cli
Slide 5: Our cultural transformation: An inspirational journey for all
Our cultural transformation: An inspirational journey for all + Agile + Learning Culture Innovation + Inclusion & Diversity Empowerment & Accountability When we learn and grow together, we activate Empowerment & Accountability, Inclusion & Diversity, and Innovation. We lead, embrace, and anticipate
Slide 6: Our focus on sustainability results in industry-leading ESG scores
Our focus on sustainability results in industry-leading ESG scores Industry-leading status across several ESG raters and rankers: ▪ Added to Dow Jones Sustainability World Index 2022 and maintained our position in the North American Index for 3rd consecutive year ▪ Secured a position on CDP's "A Lis
Slide 7: Core sectors are positioned for long-term growth
Core sectors are positioned for long-term growth Critical Energy & Advanced Facilities National Security Infrastructure Environment Sectors ▪ Legislative drivers ▪ Infrastructure Investment and Jobs Act, Inflation Reduction Act and CHIPS Act Catalysts ▪ Supply chain and technology investments ▪ Incr
Slide 8: Driving growth in key sectors
Driving growth in key sectors Catalysts Sub-Sectors ▪ Transportation Legislative drivers ▪ Water ▪ Energy transition Double-Digit ▪ Semiconductor manufacturing Pipeline Supply chain and ▪ Life sciences technology investments growth YoY ▪ Electric vehicles ▪ Cyber and intelligence Increased global th
Slide 9: Fiscal 2023 Q1 results
Fiscal 2023 Q1 results Revenue up 12% y/y, Net Revenue up 8% y/y and up 12% in constant currency GAAP Operating Profit (OP) of $238M and OP Margin of 6% Adj. OP of $332M up 8% and up 15% in constant currency; Net Revenue Adj. OP Margin of 10.6% GAAP Net Earnings from Continuing Operations of $136M G
Slide 10: Segment financials
Segment financials $’s in millions Q1 2022 Q1 2023 Y/Y Y/Y CC2 People & Places Solutions Operating Profit 189 227 20.0% 28.4% as a % of net revenue 13.0% 14.5% 143 bps Critical Mission Solutions Operating Profit as a % of revenue PA Consulting Operating Profit 91 9.3% 63 82 7.6% 51 -9.9% (169) bps -
Slide 11: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q1 cash flow from operations (CFFO) $302M and FCF1 of $270M; including a one-time net $60M CARES Act repayment ▪ Expect ~100% underlying FY23 cash conversion to adjusted net income Balance sheet strength affords prudent capital deployment ▪ E
Slide 12: Outlook & Summary
Outlook & Summary Reiterating Fiscal 2023 Outlook ▪ Diverse portfolio of recurring revenue provides opportunity to grow under multiple economic “ scenarios with upside from Climate Response, Data Solutions and Consulting & Advisory accelerators Harambee members were ▪ Based on FX rates in mid Januar
Slide 13: 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. 13
Slide 14: Challenging today. Reinventing tomorrow.
Challenging today. Reinventing tomorrow. 7 wd
Slide 15: Debt & interest overview
Debt & interest overview Fixed vs Floating Debt Trend $22 $25 $31 $36 $15 $19 $19 $18 Fixed Debt ($B’s) Floating Debt ($B’s) $1.39 $0.89 Net Interest Expense ($M’s) $1.43 $1.38 $1.43 $1.42 $1.42 $1.42 $2.18 $2.59 $2.06 $1.70 $1.71 $1.69 $2.03 $1.47 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Deb
Slide 16: Office of Global Climate Response and ESG
Office of Global Climate Response and Climate Response Environmental, Social & Governance (ESG) Climate change: the greatest challenge and opportunity of Energy Transition Natural Resource Stewardship our generation ▪ Clean energy generation ▪ Integrated water management ▪ Grid modernization & energ
Slide 17: Environmental, Social & Governance Summary
▪ Climate Action Plan 2022 Environmental, Social & Governance Summary ▪ FY22 ESG Disclosures ▪ PlanBeyond 2.0 A sustainable business model aligning purpose and vision with both growth and ▪ Climate Risk Assessment FY22 positive impact: ▪ Approved Science-Based Targets ▪ Fully integrates purpose with
Slide 18: Delivering sustainable solutions
Delivering sustainable solutions Cross-market solution Capital Program Delivery Partner Ignalina Nuclear Power Plant Real-time Flood Forecasting for Brooklyn Bridge – Montgomery Delivering work aligned with Contract Decommissioning & Remediation Climate Response Street Coastal Resiliency the United
Slide 19: Delivering sustainable solutions
Delivering sustainable solutions Cross-market solution Electric Vehicle Battery Integrated Health Utility Delivering work aligned with Resiliency Hub Network Confidential Life Sciences Project the United Nations Sustainable Manufacturing Resilience Study Development Goals: The Atlantic Council, Miam
Slide 20: Delivering Data Solutions Across Key Areas of Domain Expertise
Delivering Data Solutions Across Key Areas of Domain Expertise Transportation Platform Water Platform National Security Platform StreetLight Intelligent O&M BlackStack – SearchLynx Software as a Service (SaaS) platform providing Data analytics solution aggregates and analyzes Software accelerating s
Slide 21: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 $’s in millions (unaudited) 2022 2022 2022 2022 2022 2023 People and Places Solutions Backlog 16,930 16,950 17,527 17,014 17,014 17,243 Revenue 1,921 2,163 2,223 2,228 8,535 2,227 Net Revenue 1,449 1,599 1,587 1,581 6,216 1,567 Operating Profit 189 193 214 2
Slide 22: 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. Net revenue is calcul
Slide 23: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjusted EBITDA, and the resulting calculation of adjusted EBITDA margin, is calculated by adding income tax expense, depreciation expense and adjusted interest expense, and deducting interest income from adjusted net earnings from con
Slide 24: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 24
Slide 25: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 25
Slide 26: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 26
Slide 27: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 27
Slide 28: Reconciliation of GAAP to Adjusted Results
Reconciliation of GAAP to Adjusted Results 28
Slide 29: 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 29
Slide 30: Reconciliation of Jacobs Constant Currency Revenue
Reconciliation of Jacobs Constant Currency Revenue 30
Slide 31: Reconciliation of Jacobs Constant Currency Operating Profit
Reconciliation of Jacobs Constant Currency Operating Profit 31