Baird 2014 Business Solutions...

Baird 2014 Business Solutions Conference

February 2014

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 27, 2013. 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 27, 2013 (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 for a further description of the Company’s Risk Factors.

Feb-14 | Baird – 2014 Business Solutions Conference | 2

Financial Performance Results Summary

Fiscal Year 2013 1st Quarter 2014

Diluted EPS $3.23 $0.71

Net Earnings $423.1 million $93.7 million

Cash $1.2 billion $1.0 billion

Debt $0.4 billion $1.1 billion

Backlog $17.2 billion $18.1 billion

Continuous Pursuit of Profitable Growth

FY14 Guidance $3.35 to $3.90


Earnings History

Delivering Lower Risk Double-Digit Growth 0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

0

75

150

225

300

375

450

525

21.3%

2009

16.6%

2010

15.9%

2011

14.5%

2012

14.2%

2013

$ 399.9

$ 331.0

$ 2.60

$ 3.23

$ 423.1

$ 306.3 (1)

$ 379.0

$ 3.21

$ 2.44 (1)

$ 2.94

Diluted EPS

(1) Excluding the SIVOM Judgment

10

Ye

ar

CA

GR

Net Earnings

($ millions)

$ 450.0

$ 3.35

$ 3.90

$ 520.0

2014

14.4%

16.2%


Consolidated Backlog

Professional Services Backlog a Leading Indicator

Field Services Backlog ($ billions)

Technical Professional Services Backlog ($ billions)

8.1 6.7 5.1

5.0 5.8

5.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Q1-FY09 Q1-FY10 Q1-FY11 Q1-FY12 Q1-FY13 Q1-FY14

16.0 14.9

13.0

14.5

16.2

18.1


Why Jacobs

•  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 earnings growth goal


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


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

>92% in Client Satisfaction Scores

Nearly 96% Repeat Business

>$724 million in Client Savings from Innovative Value-Based Solutions

Sustainability Ideas Resulted in ~2 million tonnes of CO2 Savings


Market Diversity

Maximizing Opportunities Through Evolving Cycle

PharmaBio

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

33%

49%

18%

4%

7%

7%

Buildings 6%

Infrastructure 9%

National Government

18%

Chemicals 22%

Oil & Gas (Upstream)

7%

Refining (Downstream)

20%

Revenues for twelve months ended 12/27/13: $12.1 billion


33%

Public & Institutional

Buildings 6%

Infrastructure 9%

National Government

18%

Backlog (Billions)

Q1-‐12 Q1-‐13 Q4-‐13 Q1-‐14

6.7 7.2

8.1 8.2

•  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 –  Abundant prospects in all geographies –  Uptick in water projects globally; notable sales activity in

Asia Pacific –  Growing our telecommunications and gas distribution

businesses

•  Buildings: Improving –  Global construction output to grow from $8.7t in 2012 to

$15t by 2025; driven by US, China, and India –  Significant aviation, scientific, education, healthcare, and

commercial opportunities worldwide –  End-market diversification a competitive differentiator



18%

Industrial

PharmaBio 7%

Mining & Minerals

4%

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

Backlog (Billions)

7%

•  PharmaBio: Improving –  Product pipeline still driving capital investment;

especially with biotech –  Investments in India and Asia accelerating; India

domestic market to grow from $16b to $50b by 2020 –  Reach and innovation imperative for our clients

•  Mining & Minerals: Growing –  Continuing to strengthen market share in tepid

environment –  Asset optimization, continuous presence a key strength –  Buildings and infrastructure capability a competitive

differentiator

•  Power, Pulp & Paper, High Tech, Food & Consumer Products: Mixed –  Alliances with international players; greenfield/

brownfield global opportunities –  Industrial facility upgrades: $5.4b estimated cap spend –  Growing our share of power market; new build capacity

in UK and Europe; increasing demands in Middle East

Q1-‐12 Q1-‐13 Q4-‐13 Q1-‐14

2.2 2.4

1.9 2.2



49%

Process

Backlog (Billions)

Chemicals 22%

Oil & Gas (Upstream)

7%

Refining (Downstream)

20%

Q1-‐12 Q1-‐13 Q4-‐13 Q1-‐14

5.6

6.6 7.2

7.7


•  Refining: Strong –  Low energy cost and increase in exports drive investment –  Europe: upgrades, operational efficiency and maintenance

support capital investment –  Asia, South America building capacity; $90b predicted

investment in Brazil

•  Oil and Gas: Very Strong –  5-7% global spending increase in 2014; North American

capital investment ~$100b; key clients investing –  Gas monetization projects strong globally –  Brazil to become major oil exporter –  Innovation and capital efficiency driving spend in oil sands

•  Chemicals: Very Strong –  US expansion wave driven by availability of low cost gas;

strong growth in Asia, Middle East –  Capital spend anticipated to reach $77.7b this year; 10 million

tons of new ethylene capacity proposed for North America –  Technically complex facilities, modularization key strengths;

Pre-FEED and FEED pipeline very robust


Cash Invested in Attractive Return Opportunities

Areas of Focus

Geographies Asia-Pacific and South America

Markets Oil & Gas, Infrastructure, and niche additions

Acquisitions Fuel Long-Term Organic Growth

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, Chemicals, Telecommunications, Information Technology Australia, China, South Africa, South America, UK, US


Summary

•  15% average annual earnings growth rate targeted •  Focused relationship-based model •  Broad service offering, critical scale, and extensive

geographic presence •  Reputation for quality, safety, and predictable project

outcomes •  Continuous presence, multi-year awards, and

relationship-based clients driving backlog

Long History of Stable, Profitable Growth Feb-14 | Baird – 2014 Business Solutions Conference | 14

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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