Deutsche Bank Global Industrials & Basic Materials Conference

Transcription

1 Deutsche Bank Global Industrials & Basic Materials Conference June worldwide

2 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. Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 2

3 Financial Performance Results Summary Fiscal Year nd Quarter 2014 Diluted EPS $3.23 $0.63 Net Earnings $423.1 million $83.5 million Cash $1.2 billion $691.3 million Debt $0.4 billion $1.0 billion Backlog $17.2 billion $18.4 billion FY14 Guidance $3.15 to $3.55* * Excluding unusual items in the first half and announced restructuring costs in the second half Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 3

4 Second Quarter Results and Outlook Q2 solid, absent unusual items European project issues (-$0.10) Holiday and weather (-$0.07) SKM related items (-$0.07) Sale of VCM technology (+$0.05) Second half results to reflect: Restructuring, largely in Europe SKM related Underlying business outlook remains solid Record backlog Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 4

5 SKM Update Accretive in Q2 Synergy opportunities exceed expectations Short-term effects impact second half Solid foundation for FY2015 Significant sales leverage Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 5

6 Backlog at Record Levels Field Services Backlog ($ billions) Technical Professional Services Backlog ($ billions) Q2-FY09 Q2-FY10 Q2-FY11 Q2-FY12 Q2-FY13 Q2-FY14 Professional Services Backlog a Leading Indicator Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 6

7 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 Synergies from SKM Intense focus on operational efficiency Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 7 15% Average Earnings Growth Goal

8 Our Relationship Model Fuels Growth Long-Term Relationships Trust/Client Knowledge Continuous Improvement Superior Value Reinvest Steady Earnings Growth Growth Fueled by Clients Lower Cost of Doing Business Repurchase Loyalty Manageable Risk Building a Strong Reputation in Each Market We Serve Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 8

9 Our Relationship Model Fuels Growth Long-Term Relationships Reinvest Steady Earnings Growth Trust/Client Knowledge >92% in Client Satisfaction Scores Continuous Improvement Nearly 96% Repeat Business Growth Fueled by Clients Lower Cost of Doing Business Superior Value >$2.9 billion in Client Savings from Innovative Value-Based Solutions Repurchase Loyalty Sustainability Ideas Resulted in ~5 million tonnes of CO 2 Savings Manageable Risk Building a Strong Reputation in Each Market We Serve Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 9

10 Market Diversity National Government 18% Chemicals 22% 33% 49% Infrastructure 9% Buildings 6% Oil & Gas (Upstream) 7% PharmaBio 4% 7% Refining (Downstream) 20% Mining & Minerals 18% 7% Power, Pulp & Paper, High Tech, Food & Consumer Products Revenues for twelve months ended 3/28/14: $12.5 billion Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 10 Maximizing Opportunities Through Evolving Cycle

11 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 Public & Institutional Infrastructure: Strong Road, rail and airport opportunities abundant in US, Australia, New Zealand, UK and Morocco Uptick in water projects globally; notable sales activity in Asia Pacific; Middle East >$70b US telecom carriers expected to invest ~$35b/year in wireless infrastructure through 2017; Gas distribution gaining traction Buildings: Improving Global construction output growing to $15t by 2025; driven by US, China, and India Significant high tech, aviation, scientific, education, healthcare, and commercial opportunities worldwide 6.7 Backlog (Billions) End-market diversification a competitive differentiator Q2-12 Q2-13 Q1-14 Q2-14 Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 11

12 PharmaBio: Improving Product pipeline mixed but still driving capital investments Client investments in India and Asia; India domestic market to grow from $16b to $50b by 2020 Dominant position; modular, work share, continuity from engineering through construction; Key differentiators Industrial Mining & Minerals: Growing Continuing to strengthen market share in tepid environment; SKM strength expands our capabilities and presence Asset optimization, continuous presence a key strength Integrated service delivery and end-market diversification; Key differentiators Backlog (Billions) Power, Pulp & Paper, High Tech, Food & Consumer Products: Mixed Alliances with international players; greenfield/brownfield global opportunities Focus on continuous improvement of safety record having positive impact Industrial facility upgrades; >$5b estimated CapEx Growing our share of power market; new build capacity in UK and Europe; increasing demands in Middle East Q2-12 Q2-13 Q1-14 Q2-14 Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 12

13 Refining: Strong High emphasis on reliability and safety projects (ISA 84) Increasing CapEx investments in US, Middle East and Asia Asia, South America building capacity; $90b predicted investment in Brazil Process Tier 3 gasoline opportunities Oil & Gas: Very Strong Important wins with key clients; continued strong investment in North America; client cadence conservative Innovation and capital efficiency driving spend in oil sands Gas monetization projects strong globally Backlog (Billions) Pipeline services a growth opportunity; ~$4b CapEx in US Chemicals: Very Strong US expansion wave extends beyond ethylene crackers Capital spend anticipated to reach $77.7b this year Pre-FEED and FEED pipeline robust; methanol derivatives a key strength Q2-12 Q2-13 Q1-14 Q2-14 Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 13

14 Robust Acquisition Pipeline 2014 Buildings, Infrastructure, Water, Mining & Minerals, Power, Process, Telecommunications, National Government(intelligence/IT), Upstream (pipelines) Australia, China, South Africa, South America, UK, US Geographies Areas of Focus North 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 Upstream and Telecommunications 1994 Pulp & Paper, Buildings US ~1/3 of our Growth Historically Comes from Acquisitions Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 14

15 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 fuel FY2015 growth Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 15

16 National Government Chemicals PharmaBio Food & Consumer Products Buildings Oil & Gas Upstream Mining & Minerals High Tech Infrastructure Refining Downstream Power Pulp & Paper Jun-14 Deutsche Bank Global Industrials & Basic Materials Conference 16

17 Copyright 2014 Jacobs Engineering Group Inc. All rights reserved. Jacobs and BeyondZero are trademarks of Jacobs Engineering Group Inc. CC 06/14 worldwide