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www.jacobs.com | worldwide Deutsche Bank Global Industrials & Basic Materials Conference June 2014
www.jacobs.com | worldwide
Deutsche BankGlobal Industrials & Basic Materials Conference
June 2014
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 27, 2013, 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.
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 2
Financial Performance Results Summary
Fiscal Year 2013 2nd Quarter 2014
Diluted EPS $3.23 $0.63
Net Earnings $423.1 million $83.5 million
Cash $1.2 billion $691.3 million
Debt $0.4 billion $1.0 billion
Backlog $17.2 billion $18.4 billion
FY14 Guidance $3.15 to $3.55*
* Excluding unusual items in the first half and announced restructuring costs in the second half
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 3
Second Quarter Results and Outlook
• Q2 solid, absent unusual items– European project issues (-$0.10)
– Holiday and weather (-$0.07)
– SKM related items (-$0.07)
– Sale of VCM technology (+$0.05)
• Second half results to reflect: – Restructuring, largely in Europe
– SKM related
• Underlying business outlook remains solid– Record backlog
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 4
SKM Update
• Accretive in Q2
• Synergy opportunities exceed expectations
– Short-term effects impact second half
– Solid foundation for FY2015
• Significant sales leverage
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 5
Backlog at Record LevelsField Services Backlog ($ billions)
Technical Professional Services Backlog ($ billions)
8.1 8.3 8.7
9.9
10.9
12.6
8.5 6.45.3
5.2
5.9
5.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Q2-FY09 Q2-FY10 Q2-FY11 Q2-FY12 Q2-FY13 Q2-FY14
16.6
14.714.0
15.1
16.8
18.4
Professional Services Backlog a Leading IndicatorJun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 6
Growth Strategy
• Differentiate with our relationship-based business model
• Leverage market diversity
• Expand geographic presence through multi-domestic
strategy
• Use cash position for strategic acquisitions
• Continue to drive down costs
– Synergies from SKM
– Intense focus on operational efficiency
15% Average Earnings Growth GoalJun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 7
Our Relationship Model Fuels Growth
Building a Strong Reputation in Each Market We Serve
Long-Term
RelationshipsTrust/Client
KnowledgeContinuous
ImprovementSuperior
Value
Reinvest
Steady
Earnings
Growth
Growth
Fueled by
Clients
Lower Cost
of Doing
Business
Manageable
Risk
Repurchase
Loyalty
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 8
Our Relationship Model Fuels Growth
Building a Strong Reputation in Each Market We Serve
Long-Term
RelationshipsTrust/Client
KnowledgeContinuous
ImprovementSuperior
Value
Reinvest
Steady
Earnings
Growth
Growth
Fueled by
Clients
Lower Cost
of Doing
Business
Manageable
Risk
Repurchase
Loyalty
>92% in Client Satisfaction Scores
Nearly 96% Repeat Business
>$2.9 billion in Client Savings from Innovative Value-Based Solutions
Sustainability Ideas Resulted in ~5 million tonnes of CO2 Savings
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 9
Market Diversity
Revenues for twelve
months ended
3/28/14: $12.5 billion
Maximizing Opportunities Through Evolving Cycle
33% 49%
18%
PharmaBio
Mining & Minerals
Power, Pulp & Paper, High Tech,
Food & Consumer Products
4%
7%
7%
Buildings
6%
Infrastructure
9%
National
Government
18%
Chemicals
22%
Oil & Gas
(Upstream)
7%
Refining
(Downstream)
20%
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 10
Public & Institutional
National Government: Improving
2-year US budget provides funding certainty; MILCON, RDT&E, Procurement, NASA winners
US military bases in Asia Pacific: >$43b; UK defense remains buoyant
Nuclear cleanup in UK robust; >$1b environmental remediation projects in North America
Infrastructure: Strong
Road, rail and airport opportunities abundant in US, Australia, New Zealand, UK and Morocco
Uptick in water projects globally; notable sales activity in Asia Pacific; Middle East >$70b
US telecom carriers expected to invest ~$35b/year in wireless infrastructure through 2017;
Gas distribution gaining traction
Buildings: Improving
Global construction output growing to $15t by 2025; driven by US, China, and India
Significant high tech, aviation, scientific, education, healthcare,
and commercial opportunities worldwide
End-market diversification a competitive differentiator
Backlog (Billions)
Q2-12 Q2-13 Q1-14 Q2-14
6.7
7.9 8.2 8.4
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 11
Industrial
Backlog (Billions)
2.52.2 2.2 2.2
Q2-12 Q2-13 Q1-14 Q2-14
PharmaBio: Improving
Product pipeline mixed but still driving capital investments
Client investments in India and Asia; India domestic market to grow from $16b to $50b
by 2020
Dominant position; modular, work share, continuity from engineering through construction;
Key differentiators
Mining & Minerals: Growing
Continuing to strengthen market share in tepid environment; SKM strength expands our
capabilities and presence
Asset optimization, continuous presence a key strength
Integrated service delivery and end-market diversification; Key differentiators
Power, Pulp & Paper, High Tech, Food & Consumer Products: Mixed
Alliances with international players; greenfield/brownfield global opportunities
Focus on continuous improvement of safety record having positive impact
Industrial facility upgrades; >$5b estimated CapEx
Growing our share of power market; new build capacity in UK and Europe; increasing
demands in Middle East
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 12
Process
Backlog (Billions)
Q2-12 Q2-13 Q1-14 Q2-14
5.9
6.77.7 7.8
Refining: Strong
High emphasis on reliability and safety projects (ISA 84)
Increasing CapEx investments in US, Middle East and Asia
Asia, South America building capacity; $90b predicted investment in Brazil
Tier 3 gasoline opportunities
Oil & Gas: Very Strong
Important wins with key clients; continued strong investment in North America; client cadence
conservative
Innovation and capital efficiency driving spend in oil sands
Gas monetization projects strong globally
Pipeline services a growth opportunity; ~$4b CapEx in US
Chemicals: Very Strong
US expansion wave extends beyond ethylene crackers
Capital spend anticipated to reach $77.7b this year
Pre-FEED and FEED pipeline robust; methanol derivatives a key strength
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 13
Robust Acquisition Pipeline
Areas of Focus
Geographies North America
MarketsUpstream and
Telecommunications
Pulp & Paper, Buildings
US1994
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
~1/3 of our Growth Historically Comes from AcquisitionsJun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 14
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 organic expansion and strategic acquisitions
• Cost position
– Creates competitive advantage
– Restructuring actions fuel FY2015 growth
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 15
National Government Chemicals PharmaBioFood & Consumer
Products
Buildings Oil & Gas Upstream Mining & Minerals High Tech
Infrastructure Refining Downstream Power Pulp & Paper
Jun-14 | Deutsche Bank – Global Industrials & Basic Materials Conference | 16
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