Jabil Inc.

Hello, and welcome to the Jabil second quarter fiscal 2022 earnings call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Adam Berry, Investor Relations. Please go ahead. Good morning.

Good morning. And welcome to Jabil's second quarter of fiscal 2022 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 entirety of today's session will be posted for audio playback on our website. I'd like to now ask that you follow our earnings presentation with the slides on the website, beginning with a 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 anger report on form 10 K for the fiscal year ended August 31st, 2021 and other filings. Table 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, I'll now turn the call over to Mark.

Thanks, Adam. Good morning. I appreciate everyone taking time to join our call today. To begin with, our hearts go out to everyone impacted by the war in Ukraine. When I think about our team, along with their families, What comes to mind are words like admiration, courage, and heart. Please know we're in constant communication with those on the ground, and we continue to provide resources and financial assistance as the safety and security of those in Ukraine is our top priority. At Jabil, we're one corporate family. with people located all over the world. And despite the physical distance between us, we'll always face difficult situations together. To all of our employees, thank you for being servant leaders, thank you for your spirit, and thank you for looking after one another. Let's now turn to slide six. where we'll take a look at our second quarter results. Q2 was another strong quarter, both top line and bottom line, driven by double-digit revenue growth year on year and exceptional execution, respectively. Altogether, the team delivered core earnings per share of $1.68 on revenue of $7.6 billion, resulting in a core operating margin of 4.6%, a 40 basis point increase year on year. All in all, I'm pleased with the quarter, as our performance during the first half of the year gives us positive momentum as we push towards the back half of fiscal 22 and into fiscal 23. And when I think about a key catalyst driving our momentum, what comes to mind is the makeup of our commercial portfolio, which I'll now address on the next slide. Slide seven is a wonderful picture, which shows the construct of our portfolio today. Jabil's large-scale diversification serves as a solid foundation from which we run our business. The team has built this foundation over the past five to six years as we target new end markets and optimize our legacy business. The output of this effort is twofold. One, a higher level of resiliency across the company. And two, a substantial presence in secular end markets. Markets that include 5G, electric vehicles, personalized health care, cloud computing, and clean energy. If we dissect the pie chart a bit differently, with an emphasis on financial contribution and economic relevance, we see a terrific blend of reliable margins and sustainable cash flows. a real tribute to the diversified nature of our business today. Lastly, if we look at a third dimension of our portfolio, we find a library of essential capabilities. Capabilities that allow us to simplify the complex for many of the world's most notable brands. And when done correctly, Our unique set of capabilities offer Jabil a real competitive advantage as we lean into a massive market where things need to be built and supply chains need to be developed or modified. Moving on to slide eight, you'll see management's outlook for the year. We've increased core earnings per share to $7.25. an increase of nearly 30% year-on-year. As for revenue, FY22 now looks to be in the range of $32.6 billion, up more than 10% year-on-year. In addition, we remain committed to delivering a minimum of $700 million in free cash flow for the year. while increasing core operating margin to 4.6%, a 40 basis point improvement year on year. For me, this is a positive testament on how the team is managing the business as our strategy has been consistent and what needs to be done is well understood throughout our company. With that, Let's move to my final slide, where I'd like to start with the importance of our purpose. At Jabil, with purpose comes expectations. Expectations around certain behaviors. Behaviors such as keeping our people safe, servant leadership, protecting the environment, giving back to our communities, and offering a workplace which encompasses tolerance, respect, and acceptance. Within Jabil, these behaviors have never been more important than they are today. I'm proud of our team as they fully grasp our purpose. And in doing so, their conduct is exceptional. In closing, our improvement is steady commercially, financially, and operationally. Quite simply, here at Jabil, we build stuff and we do it really well. One factor that makes good companies great is having a value set, a culture, if you will, that enhances the way in which they solve problems. As a team, we embrace this. as we take on the challenges put forth by our customers each and every day. To our entire Jabil team, thank you for making Jabil, Jabil. I'll now turn the call over to Mike.