Jabil Inc.

Hello, and welcome to Jabil's third quarter 2021 earnings call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Adam Berry, Vice President, Investor Relations. Please go ahead, sir.

Good morning. Good morning. and welcome to Jabil's third 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 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 now ask that you follow our earnings presentation with slides on the website, beginning with our 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 third 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. JABL 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 saying thank you to all of our people here at Jabil. Thanks for the attention you give to our customers and the care you offer one another. At Jabil, It's people that drive our success. And it's these same people that truly make us who we are. Each day they carry our culture and they cement our values. Again, thanks to all. Please turn to slide five, where we'll now take a look at our Q3 financial results. The quarter came in ahead of expectations, driven by solid execution and a moderate uptick in demand. Said differently, we saw well-balanced contributions across the company. Altogether, the team delivered core operating income of $277 million on revenue of $7.2 billion, creating a core operating margin of 3.8% for the quarter. For sure, I'm pleased with these results, although what's most interesting to me is the current construct of the business and the improvements we've made to our balance sheet. This powerful combination has us feeling confident as we look towards fiscal 22. As customary, Mike will provide more detail around the quarter and speak to our forward guidance during his prepared remarks. Moving to slide six, you'll see a pie chart, a colorful chart that represents our commercial portfolio and underscores the effectiveness of our team. Today, our business is diversified, and it's diversified at scale, providing more resiliency than ever before. And in my opinion, it offers Jabil a real competitive advantage. especially when we consider our performance and the sustainability of the business. Furthermore, each individual piece of the pie harbors specific domain expertise and deep technical knowledge, all of which make up our library of essential and valuable capabilities. Add to this the method in which our team weaves together these capabilities It elevates the way in which we serve our customers, particularly when we move with speed and precision. This approach is enabled by our structure and open collaboration across the enterprise. And when it's done correctly, it yields a proven formula that allows us to simplify the complex for many of the world's most remarkable brands. With that, let's turn to slide seven. where you'll see management's outlook for the year. And looking at this slide, you can see the earnings power of the company and imagine our potential as we look to FY22 and beyond. For this year, we now anticipate core earnings per share to be in the range of $5.50 on revenue of $29.5 billion. But most importantly, we're maintaining our outlook of 4.2% for core operating margin and increasing our outlook for free cash flow by 5% to $630 million. For me, a positive testament on how the team is managing the business. And wrapping up our forecast for FY21, I'd like to note, when we communicate inside the company, our strategy is understood and our path is clear. During these internal discussions, the thing that stands out to me is our team's obsession with how we produce outcomes. And when we think about the how, we think about our behaviors. Behaviors such as keeping our people safe, servant leadership, ensuring a fully inclusive work environment, and giving back to our communities. I'm proud that our teams dialed in on all of these areas. In fact, their conduct is exceptional. Consistent with the past few years, we're looking forward to hosting our annual investor briefing. This year, the briefing will be held on the morning of September 29th. We'll open the session by reporting our fourth quarter and full year results. We'll then follow with a complete review of our priorities and we'll connect the dots on how these priorities will guide us throughout fiscal 22. Add to this a discussion on end markets and our observations specific to the macro environment. Our management team will also share how we plan to expand core operating margin year on year. In addition, We'll also describe the hard work put forth that reinforces our goal to deliver double-digit growth in core earnings per share and free cash flow for fiscal 22. In wrapping up the September session, Mike will break down the shape of the year and share our capital return framework for the coming one to two years ahead. We have lots to share, and we have a good story to tell. As we transition to my final slide, I'll once again say thanks to our team. Their efforts over the past two to three years have allowed us to reshape the business as we've targeted growth in select markets. A few examples of these markets are areas of 5G infrastructure, electric vehicles, personalized healthcare, cloud computing, clean energy, and eco-friendly packaging. I really like the decisions we're making, and we're doing so while ensuring each employee can be their true self while respecting the environment in which we work. In closing, we've made tremendous progress, financially, operationally, and commercially. At Jabil, we solve problems over and over again. It's why we welcome the continued challenges put forth by our customers. Thank you. I'll now turn the call over to Mike.