q3 2013 jacobs earnings conference call final

Fiscal Year 2013 – 3rd Quarter Earnings Conference Call July 30, 2013

July 2013 | Fiscal Year 2013 – 3rd Quarter Earnings | Slide 2

Forward-Looking Statement Disclaimer

Statements included in this presentation that are not based on historical facts are “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. 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 involve risks and uncertainties that could cause actual results of the Company to differ materially from what may be inferred from the forward-looking statements. When used in this presentation, words such as “anticipate,” “estimate,” “expect,” “seeks,” “intend,” “plan,” “believe,” and similar words are intended in part to identify forward-looking statements. Some of the factors that could cause or contribute to such differences are listed and discussed in Item 1A - Risk Factors of the Company’s most recent Annual Report on Form 10-K for the period ended September 28, 2012. That list is not all-inclusive, and the Company undertakes no obligation to release publicly any revisions or updates to any forward-looking statements that are contained in this presentation. Readers of this presentation are encouraged to read carefully the Company’s most recent Annual Report on Form 10-K for the period ended September 28, 2012 (including discussions contained in Items 1 – Business, 1A - Risk Factors, 3 – Legal Proceedings, and 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations contained therein) and other documents the Company files from time to time with the United States Securities and Exchange Commission (“SEC”) for a further description of the Company’s Risk Factors.

• John Prosser – Financial highlights

• Craig Martin – Growth strategy – Business overview

Outline


• Diluted EPS of $0.83 • Net earnings of $108.9 million • Backlog of $17.2 billion • Book-to-Bill ratio of 1.14 for trailing twelve • Strong balance sheet • Cash of $1.3 billion (net cash of $850.5 million) • FY13 guidance of $3.00 to $3.50

Positive Outlook

Third Quarter Financial Highlights


0

50

100

150

200

250

300

350

400

450

Delivering Lower Risk Double-Digit Growth

Earnings History

23.6%

2008

21.3%

2009

16.6%

2010

15.9%

2011

14.5%

2012

14.4% (1)

2013

$3.38

$420.7

$399.9

$331.0

$2.60

$3.22 (1)

$419.7 (1)

$306.3 (2)

$ 379.0 $3.21

$2.44 (2)

$2.94

Net Earnings ($ millions)

Diluted EPS

(1) Trailing twelve months to 6/28/13 (2) Excluding the SIVOM Judgment

10 Y

ear

CA

GR


Professional Services Backlog a Leading Indicator

Field Services Backlog ($ billions)

Technical Professional Services Backlog ($ billions)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Q3-FY08 Q3-FY09 Q3-FY10 Q3-FY11 Q3-FY12 Q3-FY13

10.3 7.4 5.7

5.3

5.4

8.0 8.4 7.8

8.7

10.2

18.3

15.8

13.5 14.0

15.6

Professional Services Backlog a Leading Indicator

17.2

Consolidated Backlog

6.1

11.1


• Committed to our relationship-based business model • Focus on selective market diversity • Expand geographic presence through multi-domestic

strategy • Leverage cash position for strategic acquisitions • Continue to drive down costs

Ongoing Commitment to an Average of 15% EPS CAGR

Growth Strategy


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

Our Relationship Model Fuels Growth


Market Diversity

Maximizing Opportunities Through Evolving Cycle

PharmaBio

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

36%

47%

17%

5%

5% 7%

Buildings 7%

Infrastructure 9%

National Government

20%

Chemicals 20%

Oil & Gas (Upstream)

8%

Refining (Downstream)

19%

Revenues for twelve months ended 6/28/13: $11.5 billion


Public & Institutional

• National Government: Stable – Aerospace & Defense; sequestration impacts manageable – Significant awards during quarter – Funding in UK for nuclear cleanup over $4b; key clients

releasing major opportunities

• Infrastructure: Strong – Abundant long-term prospects globally – User fee-funded projects increasing; telecom, rail, water,

utilities, toll roads – Major investments in Utility pipeline and natural gas

infrastructure

• Buildings: Improving – Mission Critical market expected to reach $80b – Healthcare, corporate, aviation prospects strong worldwide – Healthy K-12 and Higher Ed funding; managing 8 major

programs, 9 others in assessment/study phase

36%

Buildings 7%

Infrastructure 9%

National Government

20%


7.6 6.7 6.9 7.2

0

2

4

6

8

Q3 2011 Q3 2012 Q2 2013 Q3 2013

Backlog (billions)

7.1 6.9

7.9 7.9


Industrial

17%

PharmaBio 5%

Mining & Minerals

5%

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

7%

• PharmaBio: Improving – Improving product pipeline driving capital investment – Biotech, secondary manufacturing growth – Increasing work for core clients strengthens our

competitive posture – Clients investing in China and India

• Mining & Minerals: Strong

– Growing share in tepid environment – Market conducive to relationship model, sustaining

capital focus and cost posture – Buildings and infrastructure capability a competitive

differentiator – New opportunities in uranium, phosphates, potash

• Power, Pulp & Paper, High Tech, Food

& Consumer Products: Mixed – Alliances with international clients expanding;

greenfield/brownfield opportunities – Capital spending healthy; industrial facility upgrades – 30GW of addressable new build power capacity

anticipated in UK and Europe; increasing demands in ME


0

1

2

3

4

Q3 2011 Q3 2012 Q2 2013 Q3 2013

Backlog (billions)

7.6

2.4 2.2 2.1 1.5


Process

Chemicals 20%

Oil & Gas (Upstream)

8%

Refining (Downstream)

19%

47%


0

2

4

6

8

Q3 2011 Q3 2012 Q2 2013 Q3 2013

Backlog (billions)

5.4 6.3 6.7 7.2


• Refining: Strong – Market transition; increase in shale gas & tight light oil production – Cash flow drives investments in North America – Focus on cost control and efficiency – Uptick in capital spending; Ultra Low Sulfur Gasoline (ULSG) – Majors investing in brownfield refineries to process changing

feedstocks

• Oil and Gas: Very Strong – $100/barrel oil price sustainable – Worldwide E&P capital spending to increase 6.6% in 2013;

amenable spend $160b – Maintenance, sustaining capital spend increasing – Oil sands clients driven by cost control and capital efficiency – key

strengths – Unconventional gas market significant; average annual spend per

client $~2b

• Chemicals: Very Strong – Market transition due to feedstock pricing globally – Technically-complex facilities a historic strength – Low cost feedstock driving unprecedented growth in North

America – Strong growth in Asia; continuing major investments in Middle

East

We Go Where Our Clients Need Us to Be

Geographic Diversity


Presenter

Presentation Notes

FOR PRINTING

Acquisitions a Key Factor in Long-Term Growth

Areas of Focus

Geographies China, Australia, and South America

Markets Oil & Gas, Mining, Infrastructure and niche additions

Clients Add new key and core clients

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

2013

Balanced Growth through Acquisition

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


• 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

15% Average Annual EPS Growth Goal

Why Jacobs : A History of Solid Growth


National Government Chemicals PharmaBio Food & Consumer Products

Buildings Oil & Gas Upstream Mining & Minerals High Tech

Infrastructure Refining Downstream Power Pulp & Paper


q3 2013 jacobs earnings conference call final

Investor Relations

rd quarter earnings

fiscal year

rd quarter earnings

net earnings

growth earnings history

steady earnings growth

quarter funding

quarter financial highlights