Jabil Inc.

Greetings, and welcome to the Jabil first quarter of fiscal year 2021 earnings. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Adam Barry, Vice President of Investor Relations.

Good morning, and welcome to Jabil's first quarter of fiscal 2021 earnings call. Joining me on today's call are Chief Executive Officer Mark Mondello and Chief Financial Officer Mike Destor. Please note that today's call is being webcast live, and during our prepared remarks, we will be referencing slides. To follow along with the slides, please visit Jabil.com within our investor relations section. At the conclusion of today's call, the entire call will be posted for audio playback on our website. Before handing the call over to Mark, I'd like to now ask that you follow our earnings presentation with the slides on the website, beginning with the forward-looking statement. During this conference call, we will be making forward-looking statements, including, among other things, those regarding the anticipated outlook for our business such as our currently expected second quarter and fiscal year net revenue and earnings. These statements are based on current expectations, forecasts, and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. An extensive list of these risks and uncertainties are identified in our annual report on Form 10-K for the fiscal year ended August 31, 2020, and other filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With that, it's now my pleasure to turn the call over to Mark.

Thanks, Adam. Good morning. I appreciate everyone taking time to join our call today. I'll begin by offering my sincere gratitude to all of you here at Jabil. And thanks for hanging in there during these trying times. while making safety your number one priority. At Jabil, we're fundamentally in the people business. The manner in which we care for and accept one another is truly what makes us who we are today. And again, thank you. Let's please turn to slide five, where we'll look at our results for the first quarter. The quarter came in well ahead of expectations. as the team delivered core operating income of $365 million on record revenue of $7.8 billion, resulting in a core operating margin of 4.7%. The 4.7% margin is a 100 basis point increase year on year, Q1 21 to Q1 20, which, as a reminder, was a pre-COVID quarter occurring September, October, and November of 2019. Moreover, I'm really pleased with the financial makeup of the quarter. Well-balanced contributions from our EMS and BMS segments, supplemented with substantial upsides from our cloud computing, connected devices, and mobility sectors. Q1 overall gives us excellent momentum to what looks to be another outstanding year. As is customary, Mike will provide more detail around our Q1 results during his prepared remarks. Moving to slide six, you'll see a terrific illustration which underscores the effectiveness of our team. When I look at this slide, what gets me most enthused is the fact that we get one plus one equals three in so many ways across our two business segments. One example of this are the financial goals and objectives for each segment. Our DMS segment focuses on expanding margins while offering reliable cash flows, while our EMS segment focuses on expanding cash flows while offering reliable margins. perfect complements that fortify our financial results. These two segments placed side by side underpin our resiliency, especially when an individual product or product family is faced with a macro disruption, cyclical demand, or unforeseen market dynamics. Speaking of a macro disruption, today more than ever, I look at Jabil as an essential business and a trusted partner. Essential and trusted in a sustainable sense. Knowing that Jabil is a primary manufacturing partner that supports a few trillion dollars of market value. Day in and day out, we deliver high quality products while solving and simplifying complex challenges for the customers we so humbly serve. Add to this the collaboration embedded in our model, plus the deep domain expertise and a longstanding culture of always doing what's right. It's a proven formula which stimulates progress. And since we're on the topic of progress, let's turn to slide seven, where we see management's outlook for the year. Not only is the company well positioned to exceed our financial goals around margins for the year, but we're now predicting core earnings per share will be in the range of $4.60, up 15% compared to 90 days ago, and up 55% to 60% when compared to fiscal year 20. This meaningful increase to earnings is largely driven by two catalysts. The first being our well-diversified commercial portfolio, which gives us a firm and steady foundation on which to operate our business. And the second being the reduction of our net interest expense driven by proactive steps we've taken over the past nine to 12 months. I'd like to offer another round of thanks to our employees. Your stamina and collective efforts in placing the needs of the customer first has enabled an additional $1 billion of revenue for the year. A wonderful mix of revenue and leverage, allowing us the opportunity to raise our core margin by 10 basis points to 4.1% for the year. A clear reflection of our actions, specifically when it comes to margin expansion and growth of earnings. Furthermore, we'll give continued attention to core areas of differentiation and investment. Areas like our homogenous IT framework, factory automation and machine learning, back office data analytics, and specialized supply chain tools. All in the name of greater efficiencies and performance. In closing this morning, I do want to share a thought that encompasses our team. Delivering for shareholders and serving our customers is a must, but we'll only do so by respecting our environmental and social responsibilities, while also safeguarding Jabil's workplace to ensure every Jabil employee can be their true self with acceptance of individual differences. With that, please keep safe, And I wish all of you a peaceful holiday. I'll now turn the call over to Mike.