fy19 earnings & investor briefing...core operating income (non-gaap)1 $255 $246 $864 $877 core...

2020 FOURTH QUARTER EARNINGS & INVESTOR BRIEFING

September 24, 2020

FORWARD LOOKING STATEMENT

2

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 (including, net revenue, segment

revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), core diluted earnings per share (Non-

GAAP), net interest expense, and core tax rate and the components of each); our guidance for future financial performance in full fiscal year 2021

(including, net revenue, segment revenue, core operating margin, segment core margin, core earnings per share (Non-GAAP), adjusted free cash flow, free

cash flow, net capital expenditures, core EBITDA, and the components and drivers of each); and our outlook for end market revenue and core operating

margin. The statements in this presentation are based on current expectations, forecasts and assumptions involving risks and uncertainties that could

cause actual outcomes and results to differ materially from our current expectations. Such factors include, but are not limited to: our determination as we

finalize our financial results for the fourth quarter and fiscal year 2020 that our financial results and conditions differ from our current preliminary

unaudited numbers set forth herein; the scope and duration of the COVID-19 outbreak and its impact on our operations, sites, customers and supply chain;

managing growth effectively; our dependence on a limited number of customers; competitive challenges affecting our customers; managing rapid declines

or increases in customer demand and other related customer challenges that may occur; changes in technology; our ability to introduce new business

models or programs requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering,

technological and manufacturing expertise; retaining key personnel; our ability to purchase components efficiently and reliance on a limited number of

suppliers for critical components; risks associated with international sales and operations; our ability to achieve expected profitability from acquisitions;

risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks; financial and market risks;

and adverse changes in political conditions, in the U.S. and internationally, including, among others, adverse changes in tax laws and rates and our ability to

estimate and manage their impact. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year

ended August 31, 2019 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking

statements.

2020 FOURTH QUARTER EARNINGS

Mike Dastoor

September 24, 2020

1 See U.S. GAAP to non-GAAP reconciliation in appendix.

THREE MONTHS ENDED

AUGUST 31,

FISCAL YEAR ENDED

AUGUST 31,

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

U.S. GAAP diluted earnings per share $0.44 $0.34 $0.35 $1.81

Core operating income (non-GAAP)1 $255 $246 $864 $877

Core earnings (non-GAAP)1 $151 $138 $450 $473

Core diluted earnings per share (non-GAAP)1 $0.98 $0.88 $2.90 $2.98

(In millions, except for per share data)

Fourth Quarter and Fiscal Year 2020Income Highlights

4

Fourth QuarterSegment Results

5

DIVERSIFIED MANUFACTURING SERVICES (DMS)

▪ Net Revenue Increase of 17%

▪ Core margin* (non-GAAP) of 3.5%

ELECTRONICS MANUFACTURING SERVICES (EMS)



TOTAL COMPANY



DMS

39%

EMS

61%

$7.3BREVENUE

* Core margin defined as core operating income divided by net revenue

FY20Segment Results

DIVERSIFIED MANUFACTURING SERVICES (DMS)



ELECTRONICS MANUFACTURING SERVICES (EMS)



TOTAL COMPANY



DMS

39%

EMS

61%

$27.3BREVENUE

* Core margin defined as core operating income divided by net revenue

6

Cash Flow Highlights

7

1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/

FISCAL YEAR ENDED

AUGUST 31,

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

(In millions)

Business Update

Mark Mondello

September 24, 2020

9

THANK YOU for being your True SelfWe all have a voice that is:

Honored

Empowered

Authentic

Respected

Deserving

Leadership ATTENTION

10

Our Approach Our Portfolio Our Outlook

Our ApproachCreating a more Diverse & Inclusive Jabil

ROOTED in Purpose

• Aligned with our Core Values

• Critical to Business Performance

INTENTIONAL in Action

• Employing Diverse Talent

• Advocate for Human Rights

ACCOUNTABLE for Progress

• D&I Council

• Dashboards & Benchmarking

11

Our ApproachCreating a more Sustainable Jabil

Employee Volunteers, Giving Back

and Making a Difference

75,000 hours

Greenhouse gas emission reduction

25% Reduction by 2025

Additional ESG Focus Areas

Water Usage

Supply Chain

United Nations

Sustainable Development alignment

12

Safety

Hazardous Waste

Our PortfolioEnd-Markets

13

1 As of September 1, 2020, certain customers have been realigned within our reporting segments. See appendix for additional information.

Mobility

DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING

$13.2

Healthcare & Packaging

Automotive & Transport

Total Revenue

Core Operating Margin 3.7%

$14.1

Digital Print & Retail

Networking & Storage

Total Revenue


Industrial & Semi-Cap$1.7

$4.2

$3.3

$2.3

$2.8

5G, Wireless & Cloud $5.5

FY201FY201$ in billions $ in billions

$14.0

4.5%

$1.9

$4.8

$3.6

FY21E

$12.5

3.5%

$2.3

$2.2

$4.5

FY21E

$3.5 $3.5

Connected Devices $4.0 $3.7*

* Cloud transitioning to a consignment model

See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/

14

DIVERSIFIED MANUFACTURING

Mobility

Connected

DevicesAutomotive

& Transport

Healthcare

& Packaging

Our PortfolioDMS Segment with Strong Margins

DMS DMS Pedigree and Construct

• Product Validation & Regulated Environments

• Advanced Material Sciences and Mechanics

• Margin Expansion and Reliable Cash Flows

FY21 Financial Plan

• Revenue: ~$14 Billion

• Core Margin: ~4.5%


15

Networking &

Storage

5G, Wireless &

Cloud

Industrial &

Semi-Cap

Digital Print &

Retail

EMS Pedigree and Construct

• Standardized Manufacturing / IT Solutions

• Enduring End-markets

• Strong Cash Flows and Stable Margins

Our PortfolioEMS Segment with Strong Cash Flows

EMS

FY21 Financial Plan

• Revenue: ~$12.5 Billion

• Core Margin: ~3.5%


16

BILLION

~$26.5

NET REVENUE CORE OP MARGIN

4.0%

FREE CASH FLOW

$600+MILLION

$4.00

CORE EPS


MANAGEMENT’S OUTLOOK FOR FY21

Our OutlookDelivering a credible Financial Plan

17

Our OutlookDerived with Harmonious Collaboration

18

Our OutlookGrounded 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 expansion

✓ Deliver reliable Cash flows by leveraging our exposure to varied End-Markets

19

THANK YOU for being your True SelfWe all have a voice that is:

Honored

Empowered

Authentic

Respected

Deserving

Financial Update

Mike Dastoor

September 24, 2020

Financial Priorities

21

ALIGNED & FOCUSED ON DRIVING LONG-TERM VALUE CREATION

GENERATE

STRONG CASH FLOWS

EXPANDOPERATING MARGINS

INCREASE

EARNINGS PER SHARE

Our PortfolioEnd-Markets

22

1 As of September 1, 2020, certain customers have been realigned within our reporting segments. See appendix for additional information.

Mobility

DIVERSIFIED MANUFACTURING ELECTRONICS MANUFACTURING

$13.2

Healthcare & Packaging

Automotive & Transport

Total Revenue


$14.1

Digital Print & Retail

Networking & Storage

Total Revenue


Industrial & Semi-Cap$1.7

$4.2

$3.3

$2.3

$2.8

5G, Wireless & Cloud $5.5

FY201FY201$ in billions $ in billions

$14.0

4.5%

$1.9

$4.8

$3.6

FY21E

$12.5

3.5%

$2.3

$2.2

$4.5

FY21E

$3.5 $3.5

Connected Devices $4.0 $3.7*

* Cloud transitioning to a consignment model


Positioned to DeliverOperating Margin Expansion

23

Drivers of

Y/Y Margin Expansion

3.5%3.2%

4.0%

FY19 FY20 FY21E

Core Operating

Margin

1. Improved business mix

2. Improved efficiency on lower cost

structure

3. Lower COVID-related costs

($ in millions)

See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/

FY21Disciplined Investment

24See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/

FY21 Net Capex($ millions)

Net Capex FY21

Maintenance Investment $550

Growth Investment $250

Company Total $800

FY21EBITDA & Free Cash Flow Generation

See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ 25

$1.6 $1.6

$1.8

FY19 FY20 FY21E

$503 $461

$600

FY19 FY20 FY21E

Adjusted FCF ($ millions)

CORE EBITDA($ billions)

Drivers of Future

Free Cash Flow

1. Earnings expansion

2. Working capital efficiencies

3. Disciplined investment

+

Capital Allocation Framework

26

10%

VALUE CREATION FOR JABIL SHAREHOLDERS

Cash flow from operations

Free Cash Flow

Share Repurchases &

Dividends

~ 60%

Debt Optimization

& M&A

~ 40%

Net Capex

~ 60%

First Quarter FY21Guidance

27

EMS

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 - $283M

U.S. GAAP diluted earnings per share $0.79 - $1.02

Core operating income (non-GAAP)2 $295M - $335M

Net interest expense3 $47M

Core tax rate (non-GAAP)4 26% to 28%

Core diluted earnings per share (non-GAAP)2 $1.15 - $1.35

1 As of September 1, 2020, certain customers have been realigned within our reporting segments. See appendix for additional information.2 See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on September 24, 2020.3 Net interest expense = interest expense + loss on sale of AR - interest income 4 Core tax rate excludes the tax impacts related to amortization of intangibles, stock-based compensation expense and related charges, restructuring,

severance and related charges and acquisition and integration charges.

28

BILLION

~$26.5

NET REVENUE CORE OP MARGIN

4.0%

FREE CASH FLOW

$600+MILLION

$4.00

CORE EPS


MANAGEMENT’S OUTLOOK FOR FY21

Our OutlookDelivering a credible Financial Plan

MARK MONDELLOCHIEF EXECUTIVE OFFICER

MIKE DASTOORCHIEF FINANCIAL OFFICER

APPENDIX GAAP to Non-GAAP Reconciliations

31

August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019Operating income (U.S. GAAP) 197,053$ 189,745$ 499,846$ 701,356$ Amortization of intangibles 12,649 8,890 55,544 31,923 Stock-based compensation expense and related charges 20,870 13,894 83,084 61,346 Restructuring, severance and related charges 12,581 9,732 156,586 25,914 Distressed customer charge - 6,235 14,963 6,235 Net periodic benefit cost 8,680 - 16,078 - Business interruption and impairment charges, net 1,211 - 5,785 (2,860) Acquisition and integration charges 2,162 17,631 32,167 52,697 Adjustments to operating income 58,153 56,382 364,207 175,255 Core operating income (Non-GAAP) 255,206$ 246,127$ 864,053$ 876,611$ - - #REF!

Core operating income (Non-GAAP) 255,206$ 246,127$ 864,053$ 876,611$ Depreciation expense 181,240 187,990 739,038 739,910 Core EBITDA (Non-GAAP) 436,446$ 434,117$ 1,603,091$ 1,616,521$

Net income attributable to the Company (U.S. GAAP) 67,731$ 52,675$ 53,912$ 287,111$ Adjustments to operating income 58,153 56,382 364,207 175,255 Loss on securities 36,420 29,632 48,625 29,632 Net periodic benefit cost (8,680) - (16,078) - Adjustment for taxes (2,259) (796) (1,093) (18,633)

151,365$ 137,893$ 449,573$ 473,365$ - -

Diluted earnings per share (U.S. GAAP) 0.44$ 0.34$ 0.35$ 1.81$ -$ 0Diluted core earnings per share (Non-GAAP) 0.98$ 0.88$ 2.90$ 2.98$ Diluted weighted average shares outstanding (U.S. GAAP & Non-GAAP) 154,453 156,981 155,274 158,647

JABIL INC. AND SUBSIDIARIESOPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION

(In thousands, except for per share data)(Unaudited)

Three months ended Fiscal year ended

Core earnings (Non-GAAP)

32

FY20 Revenue as Recast(1)

Diversified Manufacturing Electronics Manufacturing

$ in billions

Fiscal year

ended $ in billions

Fiscal year

ended

November

30, 2019

February

29, 2020

May 31,

2020

August 31,

2020

August 31,

2020

November

30, 2019

February

29, 2020

May 31,

2020

August 31,

2020

August 31,

2020

Total Revenue $3.7 $2.9 $3.0 $3.6 $13.2 Total Revenue $3.8 $3.2 $3.4 $3.7 $14.1

Core Operatng

Margin 5.0% 3.0% 2.5% 3.9% 3.7%

Core Operatng

Margin 2.4% 2.3% 2.9% 3.1% 2.7%

(1) As of September 1, 2020, certain customers have been realigned within our reporting segments. Beginning in fiscal year 2021, customers within the automotive and transportation and

smart home and appliances industries will be presented and moved from the EMS segment to the DMS segment.

Three months ended Three months ended

fy19 earnings & investor briefing...core operating income (non-gaap)1 $255 $246 $864 $877 core...

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