Baird 2014 Business Solutions Conference. February 2014

Transcription

1 Baird 2014 Business Solutions Conference February 2014

2 Forward-Looking Statement Disclaimer Statements included in this presentation that are not based on historical facts are forwardlooking statements, as that term is defined in the Private Securities Litigation Reform Act of 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 forwardlooking 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, That list is not all-inclusive, and the Company undertakes no obligation to release publicly any revisions or updates to any forwardlooking 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

3 Financial Performance Results Summary Fiscal Year st 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 FY14 Guidance $3.35 to $3.90 Feb-14 Baird 2014 Business Solutions Conference 3 Continuous Pursuit of Profitable Growth

4 Earnings History Net Earnings ($ millions) Diluted EPS $ $ $ $ $ $ $ 3.21 $ $ 3.23 $ $ (1) $ 2.44 (1) $ 2.60 $ % % 15.9% 14.5% 14.2% 16.2% 14.4% 10 Year CAGR (1) Excluding the SIVOM Judgment Feb-14 Baird 2014 Business Solutions Conference Delivering Lower Risk Double-Digit Growth

5 Consolidated Backlog Field Services Backlog ($ billions) Technical Professional Services Backlog ($ billions) Q1-FY09 Q1-FY10 Q1-FY11 Q1-FY12 Q1-FY13 Q1-FY14 Professional Services Backlog a Leading Indicator Feb-14 Baird 2014 Business Solutions Conference 5

6 Why Jacobs 15% average annual earnings growth goal 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 Feb-14 Baird 2014 Business Solutions Conference 6

7 Our Relationship Model Fuels Growth Long-Term Relationships Trust/Client Knowledge Continuous Improvement Superior Value Reinvest Growth Fueled by Clients Repurchase Loyalty Steady Earnings Growth Lower Cost of Doing Business Manageable Risk Building a Strong Reputation in Each Market We Serve Feb-14 Baird 2014 Business Solutions Conference 7

8 Our Relationship Model Fuels Growth Long-Term Relationships Reinvest Steady Earnings Growth Trust/Client Knowledge Continuous Improvement >92% in Client Satisfaction Scores Nearly 96% Repeat Business Growth Fueled by Clients Lower Cost of Doing Business Superior Value Repurchase Loyalty >$724 million in Client Savings from Innovative Value-Based Solutions Sustainability Ideas Resulted in ~2 million tonnes of CO 2 Savings Manageable Risk Building a Strong Reputation in Each Market We Serve Feb-14 Baird 2014 Business Solutions Conference 8

9 Market Diversity Revenues for twelve months ended 12/27/13: $12.1 billion National Government 18% Chemicals 22% 33% PharmaBio Mining & Minerals Infrastructure 9% Buildings 6% 4% 7% 18% 7% Refining (Downstream) 20% Oil & Gas (Upstream) 7% Power, Pulp & Paper, High Tech, Food & Consumer Products 49% Maximizing Opportunities Through Evolving Cycle Feb-14 Baird 2014 Business Solutions Conference 9

10 Public & Institutional Revenues for twelve months ended 12/27/13: $12.1 billion 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 33% National Government 18% Infrastructure 9% 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 6.7 Buildings 6% Backlog (Billions) Q1-12 Q1-13 Q4-13 Q1-14 Feb-14 Baird 2014 Business Solutions Conference 10

11 Industrial Revenues for twelve months ended 12/27/13: $12.1 billion 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 PharmaBio 4% Mining & Minerals 2.2 7% 18% Backlog (Billions) % Power, Pulp & Paper, High Tech, Food & Consumer Products 2.2 Q1-12 Q1-13 Q4-13 Q1-14 Feb-14 Baird 2014 Business Solutions Conference 11

12 Process Revenues for twelve months ended 12/27/13: $12.1 billion 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 22% Refining (Downstream) 20% Oil & Gas (Upstream) 7% 49% 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 5.6 Backlog (Billions) Q1-12 Q1-13 Q4-13 Q1-14 Feb-14 Baird 2014 Business Solutions Conference 12

13 Acquisitions Fuel Long-Term Organic Growth 2014 Buildings, Infrastructure, Water, Mining & Minerals, Power, Chemicals, Telecommunications, Information Technology Australia, China, South Africa, South America, UK, US Geographies Areas of Focus Asia-Pacific and South America Buildings, Water/Wastewater, Mining & Minerals, Infrastructure Australia, China, India, UK, South America, US Buildings, Telecommunications, National Government, Information Technology UK, US Field Construction, Infrastructure, Buildings, Process Canada, UK, Saudi Arabia Infrastructure, Upstream Oil & Gas Hong Kong, US, Scandinavia Upstream Oil & Gas, Chemicals Belgium, Canada, Germany, Netherlands Infrastructure, Aerospace & Defense US, Australia Chemicals, Pharmaceuticals, Buildings France, India, Italy, Mexico, Spain, UK Markets Oil & Gas, Infrastructure, and niche additions 1994 Pulp & Paper, Buildings US Cash Invested in Attractive Return Opportunities Feb-14 Baird 2014 Business Solutions Conference 13

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

15 National Government Chemicals PharmaBio Food & Consumer Products Buildings Oil & Gas Upstream Mining & Minerals High Tech Infrastructure Refining Downstream Power Pulp & Paper Feb-14 Baird 2014 Business Solutions Conference 15

16 Copyright 2014 Jacobs Engineering Group Inc. All rights reserved. Jacobs and BeyondZero are trademarks of Jacobs Engineering Group Inc. xxxxx CC 02/14