Jabil Inc.

Greetings. Welcome to Jabil's third quarter fiscal year 2022 earnings call. At this time, all participants are in list only mode. Any question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. At this time, I'll turn the conference over to Adam Berry, Vice President of Investor Relations. Adam, you may now begin.

Good morning, and welcome to Jabil's third 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 now like to ask that you follow our earnings presentation with 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 fourth 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 31st, 2021 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, I'd now like 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 thanks to all of our people here at Jabil. Thank you for the tireless attention you offer our customers. And thank you for the manner in which you care for and accept one another. Let's now turn to slide five and review our third quarter results. Q3 was another strong quarter, driven by double-digit revenue growth and outstanding execution. Altogether, the team delivered core earnings per share of $1.72 on revenue of $8.3 billion. This resulted in a core operating margin of 4.2%, a 40 basis point increase year on year. All in all, I'm quite pleased with the quarter. We're carrying good momentum as we start to think about And when I think about momentum, I think about the primary catalyst behind our business, that being the makeup and scale of our commercial portfolio, which I'll now address on the next slide, slide six. The pie chart shown here reflects Jabil's commercial portfolio, which our team has built over the past five to six years. In essence, a large-scale, well-diversified foundation from which we run our business today. And the resultant output in having built this business is threefold. One, a higher level of resiliency for the corporation, either during trying times of macro and geopolitical disruptions or during more typical times when we're simply faced with never-ending demand fluctuations. Two, Jabil's presence in new markets. Markets that include 5G, electric vehicles, personalized health care, cloud computing, and clean energy. Markets that we believe will drive earnings growth. especially when combined with the continued refinement and improvement of our traditional businesses. And finally, the third result in output of our team's hard work is the assembly and collection of our many capabilities. Capabilities that allow us to simplify the complex for many of the world's most notable brands as we lean into a massive market where things need to be built and supply chains need to be developed or modified. Moving to slide seven, you'll see management's outlook for the year. We're anticipating core earnings per share to be $7.45, an increase of 33 percent year-on-year. As for revenue, fiscal 22 now looks to be $32.8 billion, while our outlook for core operating margin remains steady at 4.6 percent, a 40 basis point improvement year on year. In addition, we remain committed to delivering a minimum of $700 million in free cash flow for FY22. Altogether, this year is a terrific blend of reliable margins and sustainable cash flows. And although we're navigating a tough environment, we have ample opportunities to consider as we formalize our business plan for fiscal 23. With this in mind, we look forward to hosting our fifth annual investor briefing. And consistent with past years, The briefing will be held in late September. Adam will be confirming an exact date later this summer. We'll open the session by reporting our fourth quarter and foyer results. We'll then follow with a complete review of our priorities and explain how these priorities will guide us through FY23. Management will also share how we plan to further expand our core operating margin while sharing observations on end markets. And wrapping up the September session, Mike will share our capital return framework for FY23 and FY24. We have lots to share and a wonderful story to tell financially, operationally, and commercially. With that, Let's look at my final slide, where I'd like to talk about the importance of purpose. At Jabil, we act with purpose, and with purpose comes expectations, expectations around certain behaviors, behaviors such as keeping our people safe, protecting the environment, giving back to our communities, in ensuring a workplace of tolerance, respect, and acceptance. Within Jabil, these behaviors have never been as important as they are today. I'm proud of our team as they embrace our purpose, and in doing so, their conduct is exceptional. In closing, I like the decisions we're making. At Jabil, we build stuff, and we do it really, really well. It's why we welcome the challenges put forth by our customers. And when addressing these challenges, we do our best to make the world a little bit better, a little bit healthier, and a little bit safer each and every day. As I alluded to earlier in my prepared remarks, The world's a bit messy at the moment. What I do believe is Jabil executes well when times are steady. But I'm even more passionate in my belief that Jabil executes really well when times are difficult. Thank you for joining our call, and thanks for your interest in Jabil. I'll now turn the call over to Mike.