Fiscal Year 2014 – 3rd Quarter Earnings...

www.jacobs.com | worldwide

Fiscal Year 2014 – 3rd Quarter Earnings Conference Call

July 29, 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.

July 2014 | Fiscal Year 2014 – 3rd Quarter Earnings | Slide 2

Outline •  John Prosser

–  Financial highlights

•  Craig Martin –  Growth strategy –  Business overview


Financial Highlights •  Diluted EPS of $0.49 for the quarter

–  Includes the impact of restructuring in the amount of $0.35 per share

•  Backlog of $18.5 billion •  Book-to-bill 1.10 for trailing twelve •  Strong balance sheet •  Cash of $772.6 million •  FY14 EPS near the midpoint of Q2 guidance

–  Excludes the impact of first half adjustments and second half restructuring expenses


Backlog

Field Services Backlog ($ billions)

Technical Professional Services Backlog ($ billions)

7.4 5.7

5.3

5.4 6.1

6.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Q3-FY09 Q3-FY10 Q3-FY11 Q3-FY12 Q3-FY13 Q3-FY14

15.8

13.5 14.0

15.6

17.2

Professional Services Backlog a Leading Indicator

18.5


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

15% Average Earnings Growth Goal July 2014 | Fiscal Year 2014 – 3rd Quarter Earnings | Slide 6

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 6/27/14:

$12.6 billion

Maximizing Opportunities Through Evolving Cycle

34% 48%

18%

PharmaBio

Mining & Minerals

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

4%

8%

6%

Buildings 6%

Infrastructure 10%

National Government

18% Chemicals

22%

Oil & Gas (Upstream)

7%

Refining (Downstream)

19%


Public & Institutional

National Government: Improving

Steady opportunities in US; new national security opportunities with FNS acquisition

UK and Australia defense remain stable; major opportunities in Asia-Pacific

Nuclear cleanup in UK robust; >$1b environmental remediation projects in North America

Infrastructure: Strong

US telecom business growing: Total 5 yr global investment >$2 trillion

Uptick in water projects globally; notable sales activity in UK, Asia Pacific, Middle East

Major opportunities in airports, roads, rail; gaining market share

Buildings: Improving

Growing buildings business globally; Increase in new awards year-over-year

Aviation, scientific, high-tech, healthcare, and commercial wins worldwide

Increase in US public sector work anticipated

End-market diversification a competitive differentiator

Backlog (Billions)

Q3-‐12 Q3-‐13 Q2-‐14 Q3-‐14

6.9 7.9 8.4 8.5


Industrial

Backlog (Billions)

2.4 2.2 2.2 2.2

Q3-‐12 Q3-‐13 Q2-‐14 Q3-‐14

PharmaBio: Improving Strong skill set in both Western and Eastern hemispheres; integrated EPCM capabilities; innovative leader in lean project delivery

Product pipeline driving capital investments; significant uptick in opportunities

Client investments in India and Asia; India domestic market to grow from $16b to $50b by 2020

Opportunities in adjacent businesses such as animal health and consumer products

Mining & Minerals: Growing

Sustaining capital work continues, particularly with mid-tiers; strong relationships

Asset optimization, integrated service delivery and end-market diversification key strengths

Spending trends toward emerging markets; a few major project prospects

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

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

Alliances with international players; greenfield/brownfield global opportunities

Focus on continuous improvement of safety record having positive impact

US industrial facility upgrades; >$5b estimated CapEx


Process

Backlog (Billions)

Q3-‐12 Q3-‐13 Q2-‐14 Q3-‐14

6.3 7.2

7.8 7.8

Refining: Strong

Increasing investment in the US, Middle East, Asia, South America

Compliance- and safety-driven projects business (Tier 3 & ISA 84) in US

Geographic footprint advanced through acquisition; key to competing in global opportunities

Oil & Gas: Very Strong

Continued strong investment in North America; CapEx still at historic highs

Pipeline services a growth opportunity

Surge in domestic crude oil production; midstream infrastructure investment in North America

Gas monetization projects strong globally

Chemicals: Strong

Pre-FEED and FEED pipeline robust

Methanol and derivatives are key strengths

Prospects robust; owners taking a measured approach to releasing next phases


Acquisition Focus Areas of Focus

Geographies North America

Markets Upstream and Telecommunications

~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


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 create a foundation for FY15 growth


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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