Jacobs Solutions Inc. · NYSE:J

Jacobs Solutions — Jacobs — Jefferies 2019 Global Industrials Conference

22 slides from Jacobs Solutions's conference presentation, Aug 7, 2019

  1. Slide 1: Investor Presentation August 2019

    Investor Presentation August 2019 1

  2. Slide 2: Forward-Looking Statement Disclaimer

    Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are i

  3. Slide 3: Jacobs: Delivering Innovative Solutions & Disciplined Execution

    Jacobs: Delivering Innovative Solutions & Disciplined Execution U.S./Int’l Mix Talent Base Reimbursable Public/Private Q3 FY19 ($ in billions) 74%/26% ~52,000 and Lower Risk Sector Gross Backlog Net Revenue Fixed Price 65%/35% Services ATN ATN ~94% Metrics pro forma for KeyW $8.5 $1.2 $1.5 $14.0 BIA

  4. Slide 4: Aerospace, Technology and Nuclear (ATN)

    Aerospace, Technology and Nuclear (ATN) Unique Delivery Model Driving Share Gains ATN TTM Snapshot TTM Revenue by Customer (including KeyW) (including KeyW) ▪ One of the largest diversified government services providers ▪ Leveraging strong technical expertise, localized delivery model and U.S./Inter

  5. Slide 5: With strong markets, focused investment and value extraction from existing platforms drives growth

    With strong markets, focused investment and value extraction from existing platforms drives growth TotalAnnual Addressable Industry Highly Fragmented Market Market 5yr CAGR Key Organic Growth Areas Government Services Sector • Next Gen capabilities of cyber, cloud and analytics Contractors >0.5% • E

  6. Slide 6: ATN has a foundation of large, multi-year highly technical contracts

    ATN has a foundation of large, multi-year highly technical contracts Agency Award Size Duration Contract Scope $4.6B 8.5 years Operating the Missile Defense Integrated Operations Center, supporting its network to 2025 infrastructure, modeling and simulation, and development of systems ✓ ~75% of scop

  7. Slide 7: Jacobs ATN differentiators will continue to enable market share gains

    Jacobs ATN differentiators will continue to enable market share gains Key Areas of Differentiation Customer Responsiveness Performance Innovation Efficiency • Localized accountability • Technically deep • Recognized for innovation • Lean, highly competitive, structure with customized staff with prov

  8. Slide 8: Foundation of recurring work supports operating profit growth

    Foundation of recurring work supports operating profit growth New Bid • Continued growth in Enterprise contracts and expansion of new shorter duration projects • Historical >50% new bid win rate • Estimated new win rate of 30% as we move into adjacent markets Rebid • Rebid cycle of recurring contrac

  9. Slide 9: Strong pipeline with new opportunities in larger, longer contracts

    Strong pipeline with new opportunities in larger, longer contracts Opportunities over $100M in Revenue $30B+ Pipeline 75 7 65 6 • Intelligence Community • U.S. Army Average Duration - Years 55 5 # of Opportunities • U.K. Remediation 45 4 • U.S. Navy 35 3 • NASA 25 • Dept. of Energy / Environmental M

  10. Slide 10: The Jacobs ATN strategy is clear

    The Jacobs ATN strategy is clear • Expand our Government Services core business, becoming a premier provider, and grow in highly profitable, complementary niche markets • Accelerate our Cyber Engineering practice with focus on the Information Technology / Operation Technology (IT/OT) convergence • I

  11. Slide 11: KeyW Update: A Compelling Strategic Fit

    KeyW Update: A Compelling Strategic Fit Accelerating Growth Leadership in High-Growth, ✓ Confidential space intelligence contract on track and well funded High-Margin Multi-Billion $ Space-Intelligence Sector ✓ Space intelligence pipeline robust with focus on lower-cost, low-earth orbit satellites F

  12. Slide 12: Driving scale in Cyber Engineering to enhance overall Jacobs growth

    Driving scale in Cyber Engineering to enhance overall Jacobs growth Targeted Areas for Growth Disciplines Deepen solutions for Government Services clients Security Security Security Industrial Controls Engineering Operations Compliance Security Market Sectors Enable differentiated growth across all

  13. Slide 13: Steady Jacobs ATN organic OP growth despite major economic and defense spending swings

    Steady Jacobs ATN organic OP growth despite major economic and defense spending swings Great Recession Sequestration Expansion 300 250 Jacobs ATN1 Delivering 200 outstanding resiliency 150 Defense Budget 100 50 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 13 1Indexed to 2008 US D

  14. Slide 14: KeyW is Additive to ATN's Organic Growth Outlook

    Aerospace, Technology and Nuclear KeyW is Additive to ATN’s Organic Growth Outlook 2021 Organic Targets Est. KeyW 2018 PF (Feb 2019) Additional Impact >100 Revenue $3.9B 2-3%1 bps >200 Adj. Operating Profit $265M 8-10%1 bps +100 to Adj. Operating Profit Margin ~7% 150 bps >50 bps 1 Three Year CAGR 1

  15. Slide 15: Thank you!

    Thank you! © Copyright Jacobs www.jacobs.com | worldwide

  16. Slide 16: Recast Segment Financials

    Recast Segment Financials $’s in millions PF Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 ATN Backlog 6,641 7,174 7,147 7,130 7,130 7,158 7,285 8,456 Revenue 842 924 1,022 1,069 3,856 1,035 1,060 1,156 Operating Profit 57 581 72 77 2641 72 74 76 as a % of revenue 6.8% 6.2% 7.1% 7.

  17. Slide 17: Recast Consolidated Financials

    Recast Consolidated Financials $’s in millions PF Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Backlog 18,910 19,262 19,840 19,955 19,955 20,335 20,713 22,467 Revenue 2,746 2,870 2,934 2,992 11,541 3,084 3,092 3,170 Net Revenue 2,059 2,262 2,350 2,341 9,012 2,410 2,459 2,636 Adjus

  18. Slide 18: Other Operational Metrics from Continuing Operations

    Other Operational Metrics from Continuing Operations $’s in millions Q1 2018 Q2 2018 Q3 2018 Q1 2019 Q2 2019 Q3 2019 Depreciation (pre-tax) 18,476 26,764 24,423 18,211 23,491 25,851 Amortization of Intangibles 11,547 18,205 19,299 18,671 18,678 18,383 (pre-tax) Pass-Through Costs 411,787 608,720 583

  19. Slide 19: Non GAAP Financial Measures

    Non GAAP Financial Measures The following tables reconcile the U.S. GAAP values of net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For the comparable periods presented below, such adjustments consist of amounts incurred in connection with the

  20. Slide 20: Non GAAP Financial Measures

    Non GAAP Financial Measures The following tables reconcile the U.S. GAAP values of net earnings, EPS, operating profit and operating profit margin to the corresponding "adjusted" amounts. For the comparable periods presented below, such adjustments consist of amounts incurred in connection with the

  21. Slide 21: Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA

    Reconciliation of Net Earnings from Continuing Operations Attributable to Jacobs to Adjusted EBITDA Three months ended June 28, 2019 Adjusted Operating Profit from Continuing Operations (1) 232,813 Depreciation expense 25,851 Adjusted EBITDA $ 258,664 (1) See prior slides for reconciliation. 21

  22. Slide 22: Non-GAAP Financial Measures (cont'd)

    Non-GAAP Financial Measures (cont’d) Adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted operating profit and adjusted operating profit margin are non-GAAP financial measures that are calculated by (i) excluding the costs related to the 2015 restructur

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