Slide 1: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS March 16, 2023 BUSINESS CONFIDENTIAL / ©Jabil Inc. 2022. All Rights Reserved.
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 second quarter of fiscal year 2023; our guidance for future financial performance in our third quarter of fiscal year 2023
Slide 3: Second Quarter FY23 Highlights
Second Quarter FY23 Highlights NET REVENUE ✓ 8% y/y revenue growth $8.1 BILLION • Strength in Automotive, Healthcare and Industrial CORE OP MARGIN1 ✓ Core Operating Margin1 up 20 bps y/y • Solid execution and operating leverage 4.8% ✓ Core Diluted EPS1 • 12% growth year-on-year CORE DILUTED EPS1 $1.
Slide 4: Income Highlights
Second Quarter FY 2023 Income Highlights THREE MONTHS ENDED FEBRUARY 28, (In millions, except for per share data) 2023 2022 Net revenue $8,134 $7,553 U.S. GAAP operating income $359 $313 U.S. GAAP net income $207 $222 U.S. GAAP diluted earnings per share $1.52 $1.51 Core operating income (non-GAAP)1
Slide 5: Segment Results
Second Quarter FY 2023 Segment Results DIVERSIFIED MANUFACTURING SERVICES (DMS) ▪ Net Revenue Increase of 8% ▪ Core margin* (non-GAAP) of 4.6% ELECTRONICS MANUFACTURING SERVICES (EMS) EMS $8.1B DMS ▪ Net Revenue Increase of 7% 50% REVENUE 50% ▪ Core margin* (non-GAAP) of 5.1% TOTAL COMPANY ▪ Net Rev
Slide 6: Financial Update
FINANCIAL UPDATE MIKE DASTOOR 6
Slide 7: Second Quarter FY 2023 YTD: Solid First Half Performance
Second Quarter FY 2023 YTD Solid First Half Performance Amid Dynamic Environment NET REVENUE CORE OP INCOME 1 CORE EPS 1 Y/ Y GROW TH Y/ Y GROW TH Y/ Y GROW TH 10% 15% 16% 1 See U.S. GAAP to non-GAAP reconciliation in appendix. 7
Slide 8: Cashflow Highlights
Second Quarter FY 2023 Cashflow Highlights ($ millions) THREE MONTHS ENDED FEBRUARY 28, 2023 Days in inventory net of deposits1 69 Net cash provided by operating activities $414 Acquisition of property, plant and equipment ($323) Proceeds and advances from sale of property, plant and equipment $19 N
Slide 9: Third Quarter FY23 Guidance
Third Quarter FY23 Guidance Segment Revenue Guidance Q3 FY22 Q3 FY23E Diversified Manufacturing Services $3.8B $4.1B Electronics Manufacturing Services $4.5B $4.1B Consolidated Guidance Q3 FY23E Net revenue $7.9B - $8.5B U.S. GAAP operating income $336M - $396M U.S. GAAP diluted earnings per share $
Slide 10: Continued Mix Shift to Recession-Resilient Areas
Continued Mix Shift to Recession-Resilient Areas Revenue by End-Market $ in billions FY22 FY23E Y/Y $ in billions FY22 FY23E Y/Y Auto & Transportation $3.1 $4.4 42% Digital Print & Retail $3.1 $3.2 3% Healthcare & Packaging $5.0 $5.5 10% Industrial & Semi-Cap $4.0 $4.5 13% Connected Devices $4.7 $3.
Slide 11: Our Outlook: The Momentum Continues
Our Outlook The Momentum Continues CORE OP INCOME & CORE OP MARGIN1 CORE EPS1 FREE CASH FLOW1 (In millions) (In millions) $1,700 $900+ $1,543 $8.40 $810 $7.65 $1,241 4.9% $640 4.6% $5.61 $503 $461 $877 $864 4.2% $2.98 $2.90 3.5% 3.2% FY19 FY20 FY21 FY22 FY23E FY19 FY20 FY21 FY22 FY23E FY19 FY20 FY21
Slide 12: Business Update
BUSINESS UPDATE KENNY WILSON 12 12
Slide 13: What You Can Expect From Jabil's Leadership Team
What You Can Expect From Jabil’s Leadership Team • Deliver value to our customers • Enhance operational excellence • Empower our people • Drive long-term value to shareholders 13
Slide 14: Targeted End-Markets
Targeted End-Markets Secular Trends Driving Growth Across Multiple End-Markets 5G / CLOUD ENERGY STORAGE AING INFRASTRUCURE ELECTRIC VEHICLES DIGITAL HEALTH RENEWABLES WAREHOUSE AUTOMOTION 14
Slide 15: Updated FY23 Financial Plan
Our Outlook Updated FY23 Financial Plan NET REVENUE CORE OP MARGIN 1 CORE EPS 1 FREE CASH FLOW 1 $ 34.5 4.9% $ 8.40 $ 900+ BILLION MILLION MANAGEMENT’S OUTLOOK FOR FY23 1See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/ 15
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: Thank You
Our People Thank You
Slide 18: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP TO NON-GAAP RECONCILIATIONS BUSINESS CONFIDENTIAL / ©Jabil Inc. 2022. All Rights Reserved. 18
Slide 19: Operating Income, EBITDA and Net Income Non-GAAP Reconciliation
JABIL INC. AND SUBSIDIARIES OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION (in millions, except for per share data) (Unaudited) Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Operating income (U.S. GAAP) $ 359 $ 313 $ 721