Slide 1: Fiscal Year 2016 – 3rd Quarter Earnings Conference Call
Fiscal Year 2016 – 3rd Quarter Earnings Conference Call August 9, 2016 www.jacobs.com | worldwide
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer Statements included in this presentation that are not based on historical fact are forward‐looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial and economic data,
Slide 3: Agenda
Agenda • Business Review • Financials Review • Next Steps • Closing Comments 3
Slide 4: FY16Q3 Highlights
FY16Q3 Highlights * Cost and Execution Improvements Continue • Backlog of $18.3B, Up vs Last Quarter • Gross Margin of 16.8%, Sequentially Up 80 bps • G&A Cost Reduction of $102M YTD • Improved Project Delivery Momentum Continues • EPS of $0.78, Stable vs Year Ago Excluding Discrete Tax Benefit • Wo
Slide 5: FY16Q3 Lines of Business Summary
FY16Q3 Lines of Business Summary Revenues Segment Operating Profit * Aerospace & Technology 25% 18% 28% 33% Buildings & Infrastructure 18% 21% Industrial 26% 31% (Incl. Field Services) Petroleum & Chemicals 5 * Financials reflect adjusted figures; GAAP reconciliation tables at end of presentation *
Slide 6: Aerospace & Technology
Aerospace & Technology Strong Sales Execution Driving Sequential Backlog Growth • Steady Growth Markets – $140M of protested govt contracts awarded in FY16 not yet in backlog – Continuing strong trend of contract rebid success – Solid pipeline of US federal services opportunities – Van Dyke acquisit
Slide 7: Buildings & Infrastructure
Buildings & Infrastructure Synergies From New LOB Structure Helping Identify Further Opportunities • Buildings – Steady – Growing healthcare facility opportunities due to aging population – Leveraging existing clients in corporate buildings markets – Mission critical (hardware/software) continues to
Slide 8: Industrial
Industrial Mixed End-Markets With Pockets of Growth • Mining & Minerals – Weak – Modest commodity price improvements; but major projects continue to stall – Rio Tinto award & sustaining capital projects continue to be the focus • Life Sciences – Strong – Robust global pipeline; Ireland, Western Euro
Slide 9: Petroleum & Chemicals
Petroleum & Chemicals Chemical Projects Helping Mitigate Weak Oil & Gas Markets • Oil & Gas – Weak – Low oil prices continue to impact demand and margins – Focus on maintenance, turnaround & sustaining capital – North America midstream opportunities • Refining – Steady – Smaller capex opportunities;
Slide 10: FY16Q3 Financial Metrics
FY16Q3 Financial Metrics * Greater Discipline & Improved Execution Delivering Results • Revenues of $2.7B; Backlog of $18.3B • Book-to-Bill for Trailing Twelve of 0.96, Up vs. Q1 and Q2 • Gross Margin of $451M, Up vs. Q1 and Q2 • G&A Reduced by $102M YTD, Down 9.8% YTD * • Operating Profit of $142M
Slide 11: Backlog
Backlog Stable Backlog Despite Weak Market Conditions Professional Engineering Services Backlog ($ Billion) Field Services Backlog ($ Billion) 5.1 5.1 18.5 18.8 18.2 18.3 17.2 15.6 6.2 6.6 6.4 3.2 4.8 6.1 6.9 5.4 12.3 12.2 11.9 11.1 11.4 10.2 Aerospace & Technology Buildings & Infrastructure Industr
Slide 12: FY16Q3 Adjusted Segment Financials
FY16Q3 Adjusted Segment Financials Line of Business Operating Profit Change vs. FY15Q3 Operating Profit Margin (Change vs. FY15Q3) Aerospace & Tech. $53.7M +16% 8.0% (+140 bps) Buildings & Infra. $50.2M +21% 9.1% (+210 bps) Industrial $28.4M +32% 4.0% (+60 bps) Petroleum & Chem. $29.6M -29% 3.9% (-4
Slide 13: Restructuring Update
Restructuring Update Benefits Continue to Accelerate • Restructuring Efforts Continue On Track – Savings of $240M - $270M (80% cash) – Headcount reduction of 4,900+ – 80+ offices impacted – Cost through end of year of $330M - $350M (cash payback of 0.8 years) • Select Investments in People, Systems,
Slide 14: Capital Allocation
Capital Allocation Share Buy-Back Execution Consistent with Previous Guidance • Share Buy-Back Status – $102M spent YTD – 4.5% reduction in shares outstanding YTD vs. FY15 – On track to execute over 3-year term • Capital Structure Strategy to be aligned with Strategic Review 14
Slide 15: Strategy Update
Strategy Update Positioning for Profitable Growth • Driving Near Term Improvements – Project delivery – new tools initiative – Information Technology – leveraging our scale – Office optimization – Divested JEC France operations • Progressing New Strategic Plan – Completed initial board review – LOB
Slide 16: Summary
Summary On Track to Meet FY16 Guidance • Backlog Stabilized • Continued Margin Improvements • Continuing Benefits From Restructuring • Focus on Continued Project Delivery Improvements • FY16 EPS Guidance Revised to $2.95 - $3.15 • Progressing Strategic Plan 16
Slide 17: Thank You!
Thank You! © Copyright Jacobs August 8, 2016 www.jacobs.com | worldwide
Slide 18: Non-US GAAP Financial Measures
Non-US GAAP Financial Measures The following table reconciles, for Q3FY16 and YTD FY16, net earnings attributable to Jacobs, diluted EPS, Selling General & Administrative expenses, and Operating Profit determined on the basis of U.S. GAAP to their respective “adjusted” (i.e., non-GAAP) amounts. The