2016 JABIL ANALYST & INVESTOR MEETING SEPTEMBER 27, 2016

Transcription

1 2016 JABIL ANALYST & INVESTOR MEETING 1 SEPTEMBER 27, 2016

2 Forward Looking Statements Forward looking statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for our full fiscal year 2016; and our estimated positioning for future financial performance in our fiscal years 2017 through 2019 (including, net revenue, segment net revenue, cash flow from operations, core operating income, core margin, segment core margin, and core diluted earnings per share results). 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 our full fiscal year 2016 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; unexpected, adverse seasonal impacts on demand; performance in the markets in which we operate; changes in macroeconomic conditions; the occurrence of, success and expected financial results from, product ramps; our ability to maintain and improve costs, quality and delivery for our customers; whether our restructuring activities and the realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing rapid declines in customer demand and other related customer challenges that may occur; our ability to successfully consummate acquisitions and divestitures; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; and our dependence on a limited number of large customers. 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, 2015, subsequent Reports on Forms 10-Q and 8-K and our other securities filings. We assume no obligation to update these forward-looking statements. 2

3 Innovation at the Speed of Digital Jabil Digital Industry Launch Bill Muir, Chief Operating Officer, Jabil 3

4 Definitions Digital For Jabil The continual application of technology, analytics, information & insights to Enhance the customer experience Improve operational performance Deliver accretive value through new business models and digital solutions all aimed at driving up shareholder value. 4 **Decided by Core Team, based on input/feedback from our Digital Summit, 25 of our customers CDO s; our survey, speaking to industry analysts, authors, journalists, reading McKinsey, Deloitte and other papers, as well as input from MIT professor George Westerman.

5 Digital Disruption For Demand And Supply Ubiquitous Connectivity, Abundance of Data Needs fulfilled whenever, wherever Linking Digital and Physical world not just products anymore DEMAND FORCES SUPPLY FORCES Re-Imagine Business Systems New value chains Step changes in fixed and variable cost 5

6 What we are staring at The Digital Opportunity Is Here Now 100 submarkets, in will transform the way people live, work, and interact in the world 6 Source: Marc Theeuwes-ETS, IDC & Jabil Market Intelligence

7 Introducing Jabil Innovation Acceleration Services A New BUSINESS MODEL Enabled through Digital innovation CORE BUSINESS & CAPABILITIES GRID Product Acceleration Services ESG E&I HC PKG JGP STRATEGIC CAPABILITIES Supply Chain idsc & Procurement Digital Manufacturing (3DP, M2M) Radius Digital Radius Prototyping & API as as a a Service as as a a Service As a Innovation Service & Innovation Consulting Consulting DELIVERING BUSINESS VALUE TO CUSTOMERS Speed Agility DIGITAL SERVICES THAT SPEED TIME TO MARKET & CUT COSTS New service models that enable customers to achieve incremental value from Jabil while achieving speed gains and cost savings. 7

8 How We Got Here 2013 February. Internal Skunk Works Project Digital Strategy Summit Hanover Messe Predictive Analytics Jabil s Digital Evolution May HP 3D Launch at Rapid SAP 3D Partnership Jabil Wins Chainnovator Award for InControl Market Launch Jabil Digital Acceleration Services Today Keynote by Microsoft CEO Satya Nadella highlighted Jabil Predictive Analytics and positioned Jabil as industry leader in digital manufacturing: 8 The Digital Thread Improved Customer experience Better business performance Ability to create new business models Our 3D printing platform is unique in its ability to address over 340 million voxels per second, versus one point at a time, giving our prototyping and manufacturing partners radically faster build speeds, functional parts and breakthrough economics. The new HP Jet Fusion 3D Printing Solution delivers a combination of speed, quality, and cost never seen in the industry. Businesses and manufacturers can completely rethink how they design and deliver solutions to their customers. Stephen Nigro - President, HP 3D Printing

9 Vision To keep our customers relevant and thriving in the Digital Age, by becoming the most technologically advanced manufacturing services company on the planet, delivering innovation at the speed of digital. Value Cut time to market in half at a fraction of the cost, enabling our customers to unlock the $5.5 trillion dollar Digital Economy. Jabil. Innovation At The Speed Of Digital. 9

10 Jabil Innovation Acceleration Services Offering Overview 3 pillars to support our goal of delivering products to market in half the time, while slashing costs and lowering risk. User Experience Proof Of Concepts Manufacturing, Supply Chain, & Consulting Expertise State Of The Art Technology Strategic Services offered through a separate Go-to-Market Platform DIGITAL MANUFACTURING: 3D Fully Integrated 3d Printing Rapid Prototype To Solution Process Certification Supply Chain Integration Large Scale Manufacturing Stand alone or integrated offerings Differentiated services providing unique value to our customers INTELLIGENT DIGITAL SUPPLY CHAIN SERVICES Managed Portfolio Procurement Managed Services Supply Chain Managed Services All Powered By Jabil Incontrol TM 10

11 Differentiated Business Model Idea to Prototype User Experience Design (UXD) HARDWARE PRODUCT 1992 DIGITAL EXTENSIONS 2013 FULL ECO-SYSTEM DESIGN & SERVICE 2016 We are focused on innovating the connected ecosystem 11 O u r D i f f e r e n c e : D e s i g n f o r M a n u f a c t u r a b i l i t y, S c a l a b i l i t y, S e l l - a b i l i t y & D i g i t a l

12 New Offering Radius Digital Prototyping Lab Global Manufacturing & Supply Chain DISCOVER/DESIGN DEVELOP DELIVER At Scale OUTSTANDING USER EXPERIENCES products that customers want to buy & create engagement. SPEED streamlined & frictionless Idea to Value LESS RISK Quickly Iterate/Fail Fast/Build Right SCALE: Jabil s 17,000 partner supply chain/101 Manufacturing Plants/180k people Proof Points: 71 Customers through in 6 months. Time to Prototype: Cut to 5 weeks what normally takes 3 months. 12

13 Jabil Intelligent Digital Supply Chain Solutions Managed services portfolio and general availability Customer Experience Optimize & Manage the Supply Chain PROCUREMENT AS A SERVICE Procurement Strategy & Vision Procurement Sourcing & Negotiations Purchasing Execution Inbound Supply Chain Business Process Outsourcing (BPO)/Procure to Pay General Availability: September 2016 Strategy Provide Strategic Guidance & Advice SUPPLY CHAIN AS A SERVICE Network Optimization Compliance and Conflict Minerals General Availability: September 2016 Design for Supply Chain Supply Chain Risk Management End to End Visibility Planning & Inventory Optimization General Availability: Q Including Supply Chain Orchestration SaaS 13 Performance Innovation & Design Implement & Integrate Plan & Architect Supply Chain Solutions Solutions Powered by Jabil InControl and Procurement Intelligence Platform Underpinned by Industry Expertise, Intelligence & Analytics, Operational Practitioners, Supplier Relationship Management

14 Additive Manufacturing Inflection Point Open ecosystem drives innovation and costs enabling transition to Production Chasm Inflection Point 50X Cost Reduction Open Source Table-Top Printers Disrupt Market Production Plastic Printers Arrive Legacy Market Leaders Struggling PROTOTYPING PRODUCTION Digital Thread Ecosystem Expanding 10X Speed Improvement

15 Jabil Additive Manufacturing Product Acceleration Service FOCUSED ON Fully integrating 3D PRINTING INTO MANUFACTURING Vision To be the leader in additive manufacturing solutions that accelerate the adoption of 3D printing in manufacturing Materials development and certification Process development and validation 3D supply chain integration Hardware, software, materials and services We are going to change the way things are made Materials Development NPI Consulting Equipment Sales Recurring Services Process Development Tooling Fixtures Digital Thread Production Equipment Training Installation Support Materials IP 15

16 Digital Value Across Product Life Cycle Idea to Prototype Prototype to Production External Vendors External Vendors 25 Weeks What to make Strategy External Vendors Design Build External Vendors Expansive time to launch Launch External Vendors IDSC Idea Concept Prototype EVT DVT PVT Ramp Production What to make Strategy Design Analyze & Test Make it right External Vendors Build Faster time to Production 7.5 Weeks Digital Manufacturing 16 Analyze & Test

17 Radius Jabil Case Study: Superfeet Seamless collaboration Revolutionary manufacturing platform Localized manufacturing Up- Ended consumer supply chain Partnership for entry into new markets to stay competitive 17

18 18 Innovation at the Speed of Digital

19 19 THANK YOU