fiscal year 2015 – 1st quarter earnings conference...

www.jacobs.com | worldwide

Fiscal Year 2015 – 1st Quarter Earnings Conference Call

January, 2015

Forward-Looking Statement Disclaimer

Statements included in this presentation that are not based on historical facts are forward-looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial and economic data, forward-looking statements are inherently uncertain and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. For a description of some of the risks, uncertainties and other factors that may occur that could cause actual results to differ from our forward-looking statements see our Annual Report on Form 10-K for the period ended September 26, 2014, and in particular the discussions contained in Item 1 – Business, Item 1A - Risk Factors, Item 3 – Legal Proceedings, and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations, as well as the Company’s other filings with the Securities and Exchange Commission. We also caution the readers of this presentation that we do not undertake to update any forward-looking statements made herein.

January 2015 | Fiscal Year 2015 – 1st Quarter Earnings | Slide 2

Outline •  Kevin Berryman

–  Financial highlights

•  Noel Watson –  Growth strategy

•  George Kunberger –  Business Overview and Outlook


Financial Highlights for the Quarter •  Diluted EPS of $.77, up 8.5% from $.71 a year ago •  Net earnings of $100.1 million, up 6.8% from $93.7 million a year ago •  Backlog rose to $19.1 billion, up 5.8% from $18.1 billion a year ago •  Book-to-bill 1.08 for trailing twelve •  Strong balance sheet •  Repurchase of 2.5 million shares; total repurchases of 4.0 million shares •  Cash of $670.1 million •  Cautious stance on guidance


Backlog

Professional Services Backlog a Leading Indicator January 2015 | Fiscal Year 2015 – 1st Quarter Earnings | Slide 5

Q1-FY11 Q1-FY12 Q1-FY13 Q1-FY14 Q4-FY14 Q1-FY15

5.8

5.1

5.0

12.6

7.9

9.5

18.4

13.0

14.5

5.8

10.4

16.2

5.8

12.3

18.1 Field Services Backlog ($ billions) Technical Professional Services Backlog ($ billions)

5.9

13.2

19.1

Growth Strategy •  Differentiate with our relationship-based business model •  Leverage market diversity •  Expand geographic presence through multi-domestic

strategy •  Use cash position to promote growth •  Continue to drive down costs


Our Relationship Model Fuels Growth

Building a Strong Reputation in Each Market We Serve

Long-Term Relationships

Trust/Client Knowledge

Continuous Improvement

Superior Value

Reinvest

Steady Earnings Growth

Growth Fueled by

Clients

Lower Cost of Doing Business

Manageable Risk

Repurchase Loyalty


Market Diversity

Revenues for twelve months ended

12/26/14: $12.8 billion

Maximizing Opportunities Through Evolving Cycle

37% 46%

17%

PharmaBio

Mining & Minerals

Power, Pulp & Paper, High Tech, Food & Consumer Products

4%

7% 6%

Buildings 7%

Infrastructure 11%

National Government

19% Chemicals

23%

Oil & Gas (Upstream)

7%

Refining (Downstream)

16%


Public & Institutional

National Government: Steady Growth

Opportunities worldwide; defense and security in US, UK, AUS and Asia

US midterm elections: greater budget certainty; increasing DoD & federal civilian task orders

Nuclear business overall robust; opportunities increasing in US and UK

Intelligence submarket strong; gaining market share

Infrastructure: Strong

Transport infrastructure market buoyant in US, AUS, ME, UK; steady spending growth

Growing utility and water demand globally

Social development policies in KSA yield opportunities; presence & relationships key

Frameworks w/global commercial clients; infrastructure and building skills + global footprint

Buildings: Steady Growth

Increase in US public sector work; upsurge in DoD federal spending

Strong global healthcare prospects; healthcare facility spending in GCC up 86% since 2009

Education strong globally; US bond elections; conversions

Growing buildings work with non-public sector clients: headquarters, mission critical, retail January 2015 | Fiscal Year 2015 – 1st Quarter Earnings | Slide 9

Backlog (Billions)

Q1-‐13 Q1-‐14 Q4-‐14 Q1-‐15

7.2 8.2

9.3 9.7

Industrial

PharmaBio: Strong

Client investments in India, Asia, Europe; historic strength + global footprint differentiators

Standing strong amidst competitive pressures; award-winning industry leader

Exciting opportunities in immunotherapy and vaccine manufacturing facilities

Mining & Minerals: Stable

Sustaining capital work continues to grow

Studies and spending from majors beginning; Q1 stronger than expected

Brownfield projects present ongoing opportunities, yet clients still cautious; mid-tiers; strong relationships

Power, Pulp & Paper, High Tech, Food & Consumer Products: Mixed

Middle East power market gaining momentum; new build capacity in UK and Europe

Greenfield/brownfield global opportunities: facility upgrades >$5b in US; paper machine conversions

Industrial Agriculture sector in Australia/New Zealand growing; long term investment


Backlog (Billions)

2.4 2.2 2.1 2.1

Q1-‐13 Q1-‐14 Q4-‐14 Q1-‐15

Process

Refining: Mixed

Continued investment in North America, Europe, ME; certain projects likely delayed

ISA 84 regulations drive new spending

Upgrades, improvements for operating efficiency and output still strong

Oil & Gas: Weak

Brownfield & enhanced recovery work still economical; some greenfield delays/cancellations

Shift to high ROI basins in US; clients seeking new onshore & offshore capacity; footprint key

Sustaining capital work continues to be stable

Chemicals: Strong

Broadly, chemical investment remains strong globally; pure chemical companies benefit

Large energy clients experience ROI hurdles for certain projects

Strong chemical resume plus global delivery are key strengths


Backlog (Billions)

6.6 7.7

7.0 7.3

Q1-‐13 Q1-‐14 Q4-‐14 Q1-‐15

Acquisitions

~1/3 of our Growth Historically Comes from Acquisitions

Pulp & Paper, Buildings US 1994

Infrastructure, Aerospace & Defense US, Australia

Chemicals, Pharmaceuticals, Buildings France, India, Italy, Mexico, Spain, UK

Upstream Oil & Gas, Chemicals Belgium, Canada, Germany, Netherlands

Infrastructure, Upstream Oil & Gas Hong Kong, US, Scandinavia

Field Construction, Infrastructure, Buildings, Process Canada, UK, Saudi Arabia

Buildings, Telecommunications, National Government, Information Technology UK, US

2014

Buildings, Water/Wastewater, Mining & Minerals, Infrastructure Australia, China, India, UK, South America, US

Buildings, Infrastructure, Water, Mining & Minerals, Power, Process, Telecommunications, National Government (Intelligence/IT), Upstream (pipelines) Australia, China, South Africa, South America, UK, US


•  Historic strength •  Important to our growth model •  Strong cash position enables

action on large and small acquisition opportunities

Why Jacobs: A History of Solid Growth •  Relationship-based business model

–  Drives client loyalty, opportunities and results

•  Diversified markets/geographies/services –  Fuels growth and manages exposures

•  Strong balance sheet and cash position –  Enables growth

•  Cost position –  Creates competitive advantage


National Government Chemicals PharmaBio Food & Consumer Products

Buildings Oil & Gas Upstream Mining & Minerals High Tech

Infrastructure Refining Downstream Power Pulp & Paper


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