Fiscal Year 2015 - 2nd Quarter Earnings Conference Call April 28, 2015 www.jacobs.com | worldwide 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 26, 2014, 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. Outline • Kevin Berryman – Financial Highlights and Key Metrics • Noel Watson – Growth Strategy • Gary Mandel and George Kunberger – Business Overview and Outlook 3 Fiscal Year 2015 – Q2 Results FY15- Q2 Financial Results (GAAP) • FY15 compared to FY14: – Revenues - 8.6 % – Operating Profit + 8.7 % – EPS + 1.6 % • Cash of $465 million, net debt $290 million • Revenue in the quarter impacted by: 5 – Foreign Exchange (5 ppt) – Lower Pass-through Revenue (3 ppt) Underlying revenue growth excluding impacts is down low single digits. FY15- Q2 Financial Results (Non-GAAP/Adjusted) • Adjusted figures (excluding restructuring and discrete items from FY14 Q2 and FY15 Q2): – Operating Profit -15 % – EPS -12 % • Adjusted operating profit impacted by: – Weather/Holiday impact not adjusted in Q2 FY15 (7 ppt) – Employee Related Costs (7 ppt) – Foreign Exchange (2 ppt) • Effectively flat year-over-year 6 Underlying adjusted operating profit trend in Q2 is effectively flat year-over-year. Backlog From one year ago: Field Services Backlog ($ billions) Technical Professional Services Backlog ($ billions) Backlog Q2-FY15 12.6 6.3 Q2-FY14 12.6 5.8 Q2-FY13 10.9 Q2-FY12 Q2-FY11 7 9.9 8.7 5.3 18.9 18.4 16.8 5.9 5.2 2.5% 15.1 14.0 Book-to-Bill for trailing twelve is 1.04 Growth Strategy & Future Opportunities Growth Strategy • Differentiate with our relationship-based business model; and drive innovative solutions to support our client’s business agenda • Leverage end-market diversity and geographic presence • Use cash position to pursue profitable growth • Align costs with environment 9 Our model results in +95% client satisfaction and +90% repeat business, and lower risk, steady long-term profitable growth for our shareholders. End-Market Diversity Maximizing Opportunities Through Evolving Cycle National Government, 20% Refining (Downstream), 16% Oil & Gas (Upstream), 7% Revenues for twelve months ended 03/27/15: $12.5 billion Infrastructure, 12% Chemicals, 23% Downstream/Upstream 23% Buildings 7% PharmaBio, 4% Mining & Minerals, 5% 10 Chemicals 23% Power, Pulp & Paper, HighTech, Food & consumer Products, 6% Industrial 15% Public & Institutional 39% Process Refining: CapEx, Mixed; OpEX, Stable Delayed investment greenfield capex, but maintenance & brownfield work increasing Continued investment in North America; ME; though certain projects delayed Focus on upgrades, operating efficiency, safety regulations, energy savings Globally we’ve saved our clients $5.8 billion and reduced their carbon footprints by 18.87 metric tons – this year. For our integrated oil customers, this Value+® and Sustainability+® approach helps them adjust to their current environment. Oil & Gas: CapEx, Mixed; OpEX, Stable Backlog Oil prices stabilized; focused spend on brownfield and enhanced recovery projects 7.8 Canada oil sands weak; offset by global opportunities Global EPCM agreements with majors in place for installed base; sustaining cap 7.3 7.5 6.7 Chemicals: Strong Broadly, chemical investment remains strong globally Some delays with large energy clients experiencing ROI hurdles Our strong chemical resume + global delivery = Key Strengths 11 11 Q2-13 Q2-14 Q1-15 Q2-15 Industrial PharmaBio: Strong New immune technology Globalization of end-markets Our strong relationships and successful delivery model position us well when clients are restructuring and consolidating. Jacobs is an award-winning industry leader among competition Backlog Mining & Minerals: Under Pressure Clients remain cautious, but certain sustaining cap work is still being funded Studies are ongoing even amidst continued pressure on commodities Brownfield projects present opportunities; mid-tiers, majors 2.2 2.2 2.1 Power, Pulp & Paper, High Tech, Food & Consumer Products: Mixed 2.0 Power market; New build capacity in UK & Europe solid Greenfield/brownfield global opportunities; facility upgrades >$5B in US Industrial Agriculture sector in New Zealand growing; long-term investment 12 12 Q2-13 Q2-14 Q1-15 Q2-15 13 13 Public & Institutional National Government: Steady Growth Down slightly quarter-over-quarter; up nicely year-over-year Defense & security opportunities growing; broadening portfolio for gov’t clients Gaining market share in Intelligence Community; >$300M in contracts Nuclear clean-up business solid Infrastructure: Strong Backlog Transportation markets solid in US, AUS, ME and UK 9.7 Strong utility and water demand globally Growing opportunities in KSA and UAE; well-established presence and relationships 7.9 8.4 9.4 Frameworks with global commercial clients yielding additional infrastructure work Buildings: Steady Growth Increase in public sector work: federal, state, local public infrastructure projects Strong global healthcare and education Buildings business growing among commercial clients: offices, mission critical, retail Q2-13 Q2-14 Q1-15 Q2-15 Summary • Diversity of portfolio remains a strength – Downstream/Upstream offset by strength in Public and Institutional • Backlog remains at near record levels • Accelerating cost reduction efforts via restructuring – Real estate – Labor – Internal re-organization as a response to changes in the market • FY15 outlook adjusted to recognize short-term headwinds 14 Diversity of portfolio remains a strength; we are optimistic in our mid-term and long-term growth outlook. Key Takeaways One of the largest, most diversified full-lifecycle, technical professional and construction services firms in the world with unmatched scale and geographic footprint 15 Long-term presence with some of the worlds largest public, private and government customers; Uniquely positioned for sustaining and small and mid-cap work Most end-markets remain robust reflected in very strong backlog; Headwinds continue in Downstream/Upstream and continued pressure in Mining Opportunities to grow profitably and increase shareholder value in the long-term through strategic use of cash, improvements in cash flow and on-going quest for cost competitiveness 16 National Government Chemicals Pharma Bio Food & Consumer Products Buildings Oil & Gas Upstream Mining & Minerals High Tech Infrastructure Refining Downstream Power Pulp & Paper Non-U.S. GAAP Financial Measures: The following table reconciles certain elements of the Company's results of operations excluding the 2015 restructuring in the second quarter of fiscal 2015 and those fiscal 2014 second quarter events and losses to its U.S GAAP results of operations. Although such information is non-GAAP in nature, it is presented because management believes it provides a better view of the Company’s operating results to investors to assess the Company’s performance and operating trends. Q2 FY2015 Q2 FY2014 $ 81,967 $ 83,460 9,616 - - 25,874 Net earnings attributable to Jacobs - adjusted $ 91,583 $ 109,334 Diluted earnings per share: US GAAP Adjusted $ $ $ $ Net earnings attributable to to Jacobs - US GAAP 2015 Restructuring Non-recurring costs & losses of certain events 17 0.64 0.72 0.63 0.82 Thank You! www.jacobs.com © Copyright 2015 Jacobs. All rights reserved. www.jacobs.com | worldwide