Slide 1: 2020 Fourth Quarter Earnings & Investor Briefing
2020 FOURTH QUARTER EARNINGS & INVESTOR BRIEFING September 24, 2020
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 and fiscal year 2020; our guidance for future financial performance in our first quarter of fiscal year 2021
Slide 3: 2020 Fourth Quarter Earnings
2020 FOURTH QUARTER EARNINGS Mike Dastoor September 24, 2020
Slide 4: Fourth Quarter and Fiscal Year 2020 Income Highlights
Fourth Quarter and Fiscal Year 2020 Income Highlights THREE MONTHS ENDED FISCAL YEAR ENDED AUGUST 31, AUGUST 31, (In millions, except for per share data) 2020 2019 2020 2019 Net revenue $7,300 $6,573 $27,266 $25,282 U.S. GAAP operating income $197 $190 $500 $701 U.S. GAAP net income $68 $53 $54 $287
Slide 5: Fourth Quarter Segment Results
Fourth Quarter Segment Results DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue Increase of 17% ▪ Core margin* (non-GAAP) of 3.5% DMS ELECTRONICS MANUFACTURING SERVICES (EMS) 39% $7.3B ▪ Net Revenue Increase of 8% ▪ Core margin* (non-GAAP) of 3.5% REVENUE EMS 61% TOTAL COMPANY ▪ Net Revenue In
Slide 6: FY20 Segment Results
FY20 Segment Results DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue Increase of 8% ▪ Core margin* (non-GAAP) of 3.9% ELECTRONICS MANUFACTURING SERVICES (EMS) DMS ▪ Net Revenue Increase of 8% $27.3B 39% ▪ Core margin* (non-GAAP) of 2.7% REVENUE EMS 61% TOTAL COMPANY ▪ Net Revenue Increase of
Slide 7: Cash Flow Highlights
Cash Flow Highlights FISCAL YEAR ENDED AUGUST 31, (In millions) 2020 Cash flow from operations $1,257 Net capital expenditures1 $796 Adjusted Free cash flow (non-GAAP)1 $461 Core EBITDA (non-GAAP)1 $1,603 1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions lo
Slide 8: Business Update
Business Update Mark Mondello September 24, 2020
Slide 9: Thank you for being your True Self
THANK YOU for being your True Self We all have a voice that is: Honored Empowered Authentic Respected Deserving 9
Slide 10: Leadership Attention: Our Approach, Our Portfolio, Our Outlook
Leadership ATTENTION Our Approach Our Portfolio Our Outlook 10
Slide 11: Our Approach: Creating a more Diverse & Inclusive Jabil
Our Approach Creating a more Diverse & Inclusive Jabil ROOTED in Purpose INTENTIONAL in Action ACCOUNTABLE for Progress • Aligned with our Core Values • Employing Diverse Talent • D&I Council • Critical to Business Performance • Advocate for Human Rights • Dashboards & Benchmarking 11
Slide 12: Our Approach: Creating a more Sustainable Jabil
Our Approach Creating a more Sustainable Jabil Employee Volunteers, Giving Back United Nations and Making a Difference Sustainable Development alignment 75,000 hours Greenhouse gas emission reduction Additional ESG Focus Areas Safety Water Usage 25% Reduction by 2025 Hazardous Waste Supply Chain 12
Slide 13: Our Portfolio: End-Markets
Our Portfolio End-Markets DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY201 FY21E $ in billions FY201 FY21E Healthcare & Packaging $4.2 $4.8 Digital Print & Retail $2.3 $2.3 Automotive & Transport Industrial & Semi-Cap $3.5 $3.5 $1.7 $1.9 Connected Devices $4.0 $3.7 5G, Wireles
Slide 14: Our Portfolio: DMS Segment with Strong Margins
Our Portfolio DMS Segment with Strong Margins DIVERSIFIED MANUFACTURING DMS DMS Pedigree and Construct • Product Validation & Regulated Environments • Advanced Material Sciences and Mechanics Mobility • Margin Expansion and Reliable Cash Flows Healthcare & Packaging FY21 Financial Plan • Revenue: ~$
Slide 15: Our Portfolio: EMS Segment with Strong Cash Flows
Our Portfolio EMS Segment with Strong Cash Flows EMS EMS Pedigree and Construct • Standardized Manufacturing / IT Solutions Digital Print & Networking & Retail • Enduring End-markets Storage • Strong Cash Flows and Stable Margins Industrial & FY21 Financial Plan Semi-Cap • Revenue: ~$12.5 Billion •
Slide 16: Our Outlook: Delivering a credible Financial Plan
Our Outlook Delivering a credible Financial Plan NET REVENUE CORE OP MARGIN CORE EPS FREE CASH FLOW $ ~ 26.5 4.0% $4.00 $600+ BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY21 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/ 16
Slide 17: Our Outlook: Derived with Harmonious Collaboration
Our Outlook Derived with Harmonious Collaboration 17
Slide 18: Our Outlook: Grounded by a Straight-forward Strategy
Our Outlook Grounded by a Straight-forward Strategy ✓ Ensure our Business mix remains well Diversified ✓ Obsess over our Customers while leading with Engineering ✓ Drive Growth through collaborative sharing of Capabilities across the Enterprise ✓ Continue to contour our Portfolio for Margin expansio
Slide 19: Thank you for being your True Self
THANK YOU for being your True Self We all have a voice that is: Honored Empowered Authentic Respected Deserving 19
Slide 20: Financial Update
Financial Update Mike Dastoor September 24, 2020
Slide 21: Financial Priorities
Financial Priorities EXPAND INCREASE GENERATE OPERATING MARGINS EARNINGS PER SHARE STRONG CASH FLOWS ALIGNED & FOCUSED ON DRIVING LONG-TERM VALUE CREATION 21
Slide 22: Our Portfolio: End-Markets
Our Portfolio End-Markets DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING $ in billions FY201 FY21E $ in billions FY201 FY21E Healthcare & Packaging $4.2 $4.8 Digital Print & Retail $2.3 $2.3 Automotive & Transport Industrial & Semi-Cap $3.5 $3.5 $1.7 $1.9 Connected Devices $4.0 $3.7 5G, Wireles
Slide 23: Positioned to Deliver Operating Margin Expansion
Positioned to Deliver Operating Margin Expansion Drivers of Core Operating Y/Y Margin Expansion Margin ($ in millions) 1. Improved business mix 4.0% 2. Improved efficiency on lower cost 3.5% 3.2% structure 3. Lower COVID-related costs FY19 FY20 FY21E See U.S. GAAP to non-GAAP definitions and reconci
Slide 24: FY21 Disciplined Investment
FY21 Disciplined Investment FY21 Net Capex ($ millions) Net Capex FY21 Maintenance Investment $550 Growth Investment $250 Company Total $800 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ 24
Slide 25: FY21 EBITDA & Free Cash Flow Generation
FY21 EBITDA & Free Cash Flow Generation Drivers of Future CORE EBITDA Adjusted FCF Free Cash Flow ($ billions) ($ millions) $1.8 $1.6 $1.6 $600 + 1. Earnings expansion $503 $461 2. Working capital efficiencies 3. Disciplined investment FY19 FY20 FY21E FY19 FY20 FY21E See U.S. GAAP to non-GAAP defini
Slide 26: Capital Allocation Framework
Capital Allocation Framework Cash flow from operations Net Capex ~ 60% Free Cash Flow Debt Optimization Share Repurchases & & M&A Dividends ~ 40% 10% ~ 60% VALUE CREATION FOR JABIL SHAREHOLDERS 26
Slide 27: First Quarter FY21 Guidance
First Quarter FY21 Guidance Segment Revenue Guidance Q1 FY201 Q1 FY21E1 YoY Change ▪ Diversified Manufacturing Services $3.75B $3.8B Increase 1% ▪ Electronics Manufacturing Services $3.76B $3.2B Decrease 15% Consolidated Guidance Q1 FY21E Net revenue $6.7B - $7.3B U.S. GAAP operating income $238M -
Slide 28: Our Outlook: Delivering a credible Financial Plan
Our Outlook Delivering a credible Financial Plan NET REVENUE CORE OP MARGIN CORE EPS FREE CASH FLOW $ ~ 26.5 4.0% $4.00 $600+ BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY21 See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/ 28
Slide 29: Mark Mondello, CEO; Mike Dastoor, CFO
MARK MONDELLO MIKE DASTOOR CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Slide 30: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non-GAAP Reconciliations
Slide 31: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (In thousands, except for per share data) (Unaudited) Three months ended Fiscal year ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Operating income (U.S. GAAP) $ 197,053 $ 189,745 $ 49
Slide 32: FY20 Revenue as Recast
FY20 Revenue as Recast(1) Diversified Manufacturing Electronics Manufacturing Fiscal year Fiscal year $ in billions Three months ended ended $ in billions Three months ended ended November February May 31, August 31, August 31, November February May 31, August 31, August 31, 30, 2019 29, 2020 2020 2