Jacobs 2011 Summary Annual Reports24.q4cdn.com/280511176/files/doc_financials...Pharmaceuticals & Biotechnology 48 Success Through The Relationship 50 Board of Directors 52 Leadership

2 0 11 S U M M A R Y A N N U A L R E P O R T

Financial Highlights 1

Shareholders Message 2

Inside The Relationship 4

Features 6

Market Profiles 22

Chemicals 24

Oil & Gas 26

Refining & Petrochemical 28

Aerospace & Defense 30

Automotive & Industrial 32

Transportation 34

Environmental, Water & Wastewater 36

Buildings 38

Mission-Critical & High-Tech Facilities 40

Power & Utilities 42

Mining & Minerals 44

Food, Beverage, Forest 46& Consumer Products

Pharmaceuticals & Biotechnology 48

Success Through The Relationship 50

Board of Directors 52

Leadership 54

Analysis 60

Financial Data 62

JACOBS®

2011 SUMMARY ANNUAL REPORT

Jacobs Engineering Group Inc. is one of the world’s

largest and most diverse providers of technical,

professional, and construction services, including all

aspects of engineering, architecture, and construction,

operations and maintenance, as well as scientific and

specialty consulting. We serve a broad range of

companies and organizations, including industrial,

commercial, and government clients across multiple

markets and geographies.

Our global network includes more than 170 offices in

more than 25 countries, with operations in

North America, South America, Europe, the Middle East,

India, Australia, Africa, and Asia. Jacobs was founded in

1947 and our headquarters are in Pasadena, California.

www.jacobs.com

Louisville Water Company has a 150-yearhistory in Louisville, Kentucky, USA. Read about our Riverbank Filtration

Project on page 20.

Photo courtesy Louisville Water Company

www.jacobs.com 1

Dollars in thousands, except per share information

F I N A N C I A L H I G H L I G H T S

2011 2010 2009September 30 October 1 October 2

Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376

Net earnings attributable to Jacobs 331,029 245,974 399,854

Per share information:

Basic EPS $ 2.63 $ 1.98 $ 3.26

Diluted EPS 2.60 1.96 3.21

Stockholders’ equity 25.93 22.71 21.14

Closing year-end stock price 32.29 39.01 43.51

Total assets $ 6,049,428 $ 4,683,917 $ 4,428,614

Total Jacobs stockholders’ equity 3,312,988 2,859,048 2,625,913

Return on average equity 10.73% 8.97% 16.42%

Stockholders of record 1,394 1,467 1,461

Backlog:

Technical professional services $ 9,100,100 $ 7,588,900 $ 8,209,300

Total 14,289,800 13,202,000 15,219,400

Permanent staff 45,700 38,500 38,900

$11,467,376

09 10

$9,915,517

11

$10,381,664

$399,854

09 10

$245,974

11

$331,029

09

$13,202,000

10

$15,219,400

$14,289,800

11

REVENUESin thousands

NET EARNINGSin thousands

TOTAL BACKLOGin thousands

Net earnings for fiscal 2010 include a non-recurring after-tax charge of $60.3 million, or $0.48 per diluted share.

2 2011 Summary Annual Report

Before discussing our year in review and key performance indicators, we’d like to first

touch on an issue that’s of critical importance to Jacobs: safety and BeyondZero®. As

everyone who follows our Company knows, safety — that of our employees, their

families, our suppliers, our clients, and all those who belong to the communities which

we serve — is top priority for us. BeyondZero® is integral to our culture and meant to inspire our

employees, clients, and industry to understand that all accidents are preventable and that we have

the power to eliminate them from the workplace.

Our safety statistics improved in 2011 versus 2010, although not nearly enough. We continue to

focus on eliminating accidents and making BeyondZero® a reality.

Fiscal 2011 EPS improved to $2.60. We ended 2011 with $14.3 billion in backlog versus $13.2 billion

in 2010. Our balance sheet remains strong with working capital in excess of $1 billion and over

$900 million in cash.

The global economy remained uncertain and difficult in 2011. Notwithstanding, our private sector

markets gained strength as the year progressed and at year-end we have an abundance of

prospects. We were also able to grow our public sector (government) business in 2011 in spite of

budget turmoil at the government level. We had many important wins during the year in the public

sector and we expect that business to continue to grow.

Our ability to consistently perform is based on our fundamental strategies:

Drive repurchase loyalty through our relationship-based business model;

Maximize opportunities by remaining committed to a diversified market strategy;

Support our clients as they enter new geographies then penetrate those markets to develop a

strong local presence as part of our multi-domestic approach;

Leverage our cash position through strategic acquisitions; and

Continue to drive down cost.

Regardless of economic conditions around the world, our business model has proven to be the

right strategy for attaining the growth you and Jacobs expect — 15 percent average annual growth.

In 2011, our relationship-based business model delivered more than 91 percent client satisfaction

scores and more than 92 percent repeat business.

We believe the innovative solutions, high level of quality, and tangible, value-based results we

deliver to our clients every day drive our customers’ loyalty. In 2011, we produced more than

$3.7 billion in client savings through our JacobsValue+SM program, surpassing our record numbers

from last year. We continue to raise the bar for the client experience, and we expect no less in

the year ahead.

FY11 HIGHLIGHTS

Revenues of $10.4 billion

Net earnings of $331 million

Backlog of $14.3 billion

Cash of more than$900 million

2011 diluted EPS of $2.60

$3.7 billion in savings toour clients through ourJacobsValue+SM program

To Our Shareholders, Clients & Employees:

S H A R E H O L D E R S M E S S A G E

We further strengthened our offerings by leveraging our strong balance sheet to enhance our

competitive position through several important acquisitions this year. First, the acquisition of Aker

Solutions ASA’s Process & Construction business expanded our global presence in the mining and

minerals market, making us a top-tier contractor in that market. It also provides us new geographic

regions within South America and Australia, and increases our strength in Europe, North America,

and China.

Our acquisition of CES, a leading India infrastructure and civil engineering company, makes us

one of the largest consulting, engineering, and construction forces in India and fortifies our

resources to address the strong emerging infrastructure market in India, Asia, and the Middle East.

This, coupled with our strong infrastructure presence in the U.S. and U.K., creates tremendous

synergies and market opportunities for us across the globe. Other niche acquisitions enhanced our

position in the government, information technology, and telecommunication markets.

We operate in an extremely competitive marketplace and our success continues to depend on

delivering superior value to our clients while maintaining an industry leading cost posture.

Much like safety, managing costs — both internally and

for our clients — is in our nature. It is fundamental

to the way we operate.

We are encouraged by our performance in the past

year and the fact that the majority of our businesses

are in a growth mode. Our employees are energized

about the future and focused on the most

important aspect of our business: our

clients. Thanks to our employees, our

clients, and our shareholders for

their continued support and

commitment.

Craig L. Martin

President & Chief Executive Officer

Noel G. Watson

Chairman of the Board

3

Inside

We are a relationship-based company. This is our

fundamental business strategy. We focus on

developing strong, long-term relationships with our

clients in all of our markets around the world. Each individual

relationship is different, with its own unique needs and demands. In the

following pages we take an inside look at just a few of our client

relationships and explore the myriad ways these relationships have

contributed to our clients’ businesses.


The Relationship “Jacobs’ team provided invaluable services starting with pre-bid input on the

constructability of the design, bidding support, and construction management servicesin the field that provided value to us. Their experience on the guts of moderate scaleconstruction provided a service that was integral to the success of the project.”

Kevin W. Burke, AOLCP, ASLA, ABIProject Manager

ATLANTA BELTLINE “Jacobs’ dedication to safety was important to us, andwe did not have one work-related accident on site.The project was delivered efficiently and professionally,and, importantly, below the original budget.”

Kimberly ParmerProject ManagerCOA Department of Watershed ManagementBureau of Engineering Services

CITY OF ATLANTA

Learn more about the

Historic Fourth Ward

Park on page 36.

5

6 2011 Summary Annual Report6 2011 Summary Annual Report

NASA contractors have always fulfilled a significant role for the American space

program — from building rockets to preparing astronauts’ meals — but as NASA’s

budgetary pressures increase, the Agency turns to its contractors to develop

cost-effective solutions while maintaining a deep commitment to safety. Failure isn’t

an option when lives are on the line. In 2005, NASA’s Johnson Space Center (JSC) sought a partner

to fulfill its Engineering and Science Contract, a partner who could execute complex tasks while

preserving both the bottom line and the safety of the mission.

The Right Stuff

Winning the contract established Jacobs as the primary supplier of engineering, science,

operations, maintenance, and manufacturing services at JSC. With a track record of delivering

technical projects on time and on budget, our team of space experts and scientists also brought to

NASA our company-wide passion for safety.

Stellar Performance

Throughout the contract, until the space shuttle program concluded, we contributed to 22

successful missions providing support services before and after each flight and solving problems

while the spacecraft were in orbit. Current efforts focus on rover prototypes, the James Webb Space

Telescope, the Alpha Magnetic Spectrometer, and many others. NASA continues to face pressure to

do more with less, and Jacobs continues to help the Agency achieve its aims. NASA has extended

the original five-year contract to eight years. Priorities for space exploration may change, but

Jacobs’ commitment to ensuring NASA advances the scientific and exploratory goals of the nation

remains firm.

FEATURE

NASA’s Johnson Space Center relies on Jacobsfor cost efficiency and safety

Abo

ve & Beyon

d

“The contractor’s work [on thevacuum chamber] has beenoutstanding. Vigilance towardscost saving and avoidance isreadily apparent.”

NASA Performance Evaluation

Board Report

An average day at NASA mightfind the team updating missioncontrol software, developingrover prototypes, and testingspace suits that keep astronautssafe in the space environment.

When a computer failure on theInternational Space Stationthreatened the Atlantis Shuttle,our staff worked around theclock to fix it. NASA awardedthe team a Flight Safety Awardfor their efforts.

Space Shuttle Program

NASA Johnson’s Chamber “A”

Space Shuttle Team

“The Alpha Magnetic Spectrometer(AMS) Team continues to set thestandards for excellence…Thanksfor the outstanding folks on the[Jacobs] AMS Team.”

Steve PorterDirector of Special Projects

JOHNSON SPACE CENTER

Space Shuttle Atlantis

In 2010, NASA recognized ourefforts with the George M. LowAward for outstanding qualityand performance, noting thecompany’s commitment toexcellence, safety, andcustomer service.

We are modifyingNASA Johnson’s largest thermalvacuum chamber for the JamesWebb Space Telescope.

For the Alpha MagneticSpectrometer, we designed andfabricated the support structurethat attaches the equipment tothe International Space Station.

Alpha Magnetic Spectrometer in Space

Alpha Magnetic Spectrometer

Alpha Magnetic Spectrometer Team

George M. Low Award

Supplying 565 million liters of water every day to 2.1 million customers is no easy task,

especially in the water-stressed region of the United Kingdom in which South East

Water (SEW) operates. Add the burden of aging infrastructure, plus scheduled regular

improvement, and the task becomes a real challenge. SEW managers realized that the

delivery model, working with a number of engineering consultants, was no longer able to meet the

increasing demands of the company and the U.K. water industry. To increase the company’s

efficiency in capital investment and ensure delivery of projects on time and on budget, SEW

determined to embark on a new strategy. The solution: build a relationship with a single firm to

support SEW in the delivery of the entire five-year program.

Pooling Resources

In 2010, SEW partnered with Jacobs to create an integrated team, combining SEW’s knowledge of

asset management and stakeholder engagement with Jacobs’ expertise in delivering complex

infrastructure programs. Employees work side-by-side in a combined office and are arranged in a

matrix-style organizational structure, grouping technical experts into a central resource pool from

which the most qualified individuals can target areas of priority.

Smooth Flow

The result? In the first year the team completed more than £48.3 million in projects — achieving

regulatory outputs and on budget. Pre-construction costs were reduced by 20 percent;

environmental consents were obtained without requiring environmental impact assessments; and

communications with customers affected by construction projects increased by 90 percent. The

combined team model exceeded SEW’s expectations, and did so without a single work-related injury

thanks to Jacobs’ influence within the integrated team.

FEATURE

United Kingdom’s South East Water and Jacobs formcombined team to maximize results


Pure

Perform

ance

SEW honors the teamwith 2011 SEWManaging Director’sAward for Departmentof the Year.

“The matrix managementapproach has bene]ts to allinvolved. It gives the Deliveryand Project Managers ^exibilityand peace of mind that theresources will be available todeliver their projects but alsogives the engineers a variety ofdifferent projects to work on,ensuring continued learning anddevelopment and alsomaintaining interest andenthusiasm.”

James SmithDelivery Manager

Capital Delivery Team

“Jacobs has brought a fresh set ofskills into South East Water that havehelped to ensure the EngineeringTeam deliver on time, on budgetand to the highest quality.”

Paul BeamishProject Manager, South East WaterCapital Delivery Team

SOUTH EAST WATER

The integratedteam delivered£48.3 million ofcapital projectsin 2010, ontime and onbudget from astanding start.

Increasing customercommunicationsimproved relationswith local residents,businesses, andgovernments.

By revising the planningprocess, the integrated teamwas able to obtain allenvironmental consents atsignificantly reduced costs.

Jacobs’ influence was key totransforming the safety culturewithin the team. Zero work-related accidents were reportedin the first year.

Across-the-board cost savings— such as a 20 percentreduction in pre-constructioncosts — translate directly intomore resources available forfuture water improvements.More than £350 million remainsin the capital investment budget for the next four years.

Projects were taken from initial concept through ]nal commissioning.


FEATURE

OCP grows global reserves, formsjoint venture with Jacobs

Opportunities within the grasp of Morocco’s OCP Group (OCP) are enormous. The country

possesses more than half of known global phosphate reserves, a fertilizer component

essential to healthy crops and productive soils. By expanding mining and production

operations, OCP could reach its potential as the largest producer of phosphate and

phosphate derivatives in the world. The challenge? OCP needed a partner to help execute its expansion

plans, a partner who combined expertise in phosphate technology with experience implementing

multibillion-dollar industrial projects. OCP turned to Jacobs.

Growing Strong

We completed our first project — a small study — for OCP in 1999. That project expanded into an

opportunity to provide full engineering on the revamp of four fertilizer plants in 2001. Over time, services

provided to OCP grew to include technology implementation, detailed engineering, procurement,

construction management and staff augmentation. As the complexity of projects increased, we relied on

in-house experience in complex industrial projects, as well as expertise in phosphate production from the

Jacobs Center for Excellence in Phosphate Technology in Lakeland, Florida, USA.

Well Blended

By 2008, when OCP embarked on its ambitious expansion plans, we’d proven both our capabilities and

our commitment to the company. OCP invited us to form a 50/50 joint venture (Jacobs Engineering SA)

to support OCP’s 12-year/$12 billion investment program to increase production capacity by 70 percent.

The program includes a massive new industrial hub in the port city of Jorf Lasfar, as well as the expansion

or opening of three mines and a 187-kilometer pipeline to carry phosphate ore slurry from the mines to the

industrial hub. Innovative planning and design at the Jorf Phosphate Hub is expected to allow for easy

future expansion; up to 10 new production facilities are expected to “plug in” to the hub’s infrastructure.

Work has only just begun on the expansion program, but through this joint venture, OCP and Jacobs look

forward to helping Morocco become the largest supplier of phosphate rock and fertilizers by 2015.

The Right M

ix

Caption here

The new slurry pipelinethat transports rock phosphatefrom mines to processing plantsis expected to not only speedproduction, but also greatlyreduce transport costs and saveup to one million cubic metersof water per year.

Demand forphosphates is risingworldwide as globalpopulation boomsand farmers look toincrease agriculturalproduction.

Our support of OCPhelps bolster the entireMoroccan economy.Phosphate and itsderivatives account for,on average, about onequarter of Morocco’sexports and 3.4 percentof its gross domesticproduct.

We are delighted to see almost 400 people

working in Morocco (and hundreds more in Lakeland and Mumbai), all of

whom are supporting OCP business objectives through the execution of our

massive investment programs. We are also gratified that we are building a

professional services powerhouse that will contribute to the long-term

economic success of the Kingdom. The future is bright.”Mr. Mostafa TerrabChairman & Chief Executive Officer

OCP, S.A.

“Having now worked closely togetherfor two years on this new enterprise,we are ever more convinced that wemade the right decision to partner with Jacobs.

Between OCPand Jacobspersonnelattached to thejoint venture, thejoint venture’smore than 200local employees,the Lakeland,Fla., technologycenter, and ourIndia detaileddesign group,there are morethan 700 peoplededicated toOCP’s program.

Caption here

We’re helping OCP modernizeits facilities while remainingcommitted to highenvironmental standards.

The new Jorf Lasfar Hub willhave a “plug-and-play” designthat allows new fertilizer plantsto be added to the existinginfrastructure quickly, easily, andat low cost.

As a result of the successful start of the joint venture’s industrial support,OCP asked it to take over management of its $1 billion facility investmentprogram as well. Nearly 100 projects are now in progress throughout thesouthern half of Morocco to construct a “green city,” the Mohammed VIPolytechnic University, housing, schools, recreation centers, and otherfacilities essential to the quality of life of OCP’s personnel.


FEATURE

Highways Agency accelerates systemwidesustainability as Jacobs plots course

Jacobs supports the Highways Agency in its role to help improve and maintain the strategic

road network in England. We’ve designed highway improvements, overseen construction

and developed road specifications. But in 2010 the Agency needed assistance with a task

requiring more than bridge schematics, and wanted a long-term perspective on how to

deliver its goal of making sustainability central to every aspect of the Agency’s work. Developing the

framework for this forward plan would require a close look at every aspect of the Agency’s

operations as well as creative thinking about how sustainability reaches across internal and external

areas of operation. The Highways Agency didn’t need to look far for help: Jacobs’ sustainability staff

has extensive experience in developing corporate sustainability strategies for major clients.

Talent Merge

The first step was to put together a team that combined the skills of highways experts with the

knowledge of sustainability specialists. The team researched worldwide best practices across

multiple business sectors, as well as within transportation agencies. We talked to both internal and

external stakeholders to understand opportunities and develop priorities. We examined current

processes and policies, then went beyond the immediate issues to consider the complex challenge

of planning sustainably for future economic, social, and environmental change.

The Road Ahead

This leading sustainability work from Jacobs and the Agency drew together all of the research and

stakeholder views, creating a robust new approach that is expected to lead the Agency through its

own sustainable development journey. The plan ensures that sustainability principles are clearly

understood and centrally positioned in the Agency’s future thinking and work with its partners.

Driving Cha

nge

The Highways Agency is onlyas sustainable as its suppliers.We worked to understandsustainability issues all along thesupply chain.

Sustainability extends into everyaspect of operations at theHighways Agency.

All images Open Government

Licence, Highways Agency

The Highways Agency/Jacobsteam combined the skills ofhighway experts with theknowledge of sustainabilityspecialists.

The Highways Agencychallenges suppliers to makesavvy decisions aboutsustainability.

Developing the framework forthe sustainability plan entailedcreative thinking about howsustainability reaches acrossinternal and external areas ofoperation.


FEATURE

TVA responds to environmental disaster, selectsJacobs to lead recovery effort

Early the morning of December 23, 2008, 5.4 million cubic yards of coal-ash poured from a

failed dike at the Tennessee Valley Authority (TVA) Kingston Fossil Plant in Roane County,

Tennessee, USA. The sludge filled the Emory River and nearby ponds, covered roads and

railroads, ruptured a natural gas line and contaminated 300 acres of land. TVA needed to

clean up — fast — and couldn’t do the job alone. They needed a partner to plan and execute the

recovery effort, and to help coordinate with regulators and the public. Armed with years of

experience in environmental remediation, Jacobs took on the challenge.

A Clean Sweep

Highest priority went to cleaning the Emory River. Over 12 months, the team removed more than

3.5 million cubic yards of ash and sediment with up to five hydraulic dredges running

simultaneously. The ash was then loaded into railcars for disposal at an Alabama landfill; ultimately,

414 train shipments encompassing 40,000 railcars of recovered ash left the site. Meanwhile, a

comprehensive environmental monitoring program got underway, assessing potential

contamination of air, water, sediment, wildlife, and vegetation.

A River Restored

Work is still underway, but already the view from the Kingston plant is a long way from the

devastated landscape of winter 2008. The Emory River reopened in May 2010, swallows frequent

the riverbank, and staff say fishing has never been better. Air- and water-quality tests indicate no

long-term environmental problems. TVA is still rebuilding its relationship with the surrounding

community, and Jacobs is assisting TVA in restoring the surrounding area for public recreational

use. Best of all, a new slurry wall around the failed coal-ash pond combined with a new dry-ash

storage system should prevent future disasters. The industry now understands the risks of coal-ash,

and, thanks in part to the hard work of the entire team, including Jacobs, Roane County is safe

and clean once more.

A Clear Cou

rse

Kingston is one of the largestenvironmental cleanups inU.S. history with project costsexpected to exceed $1 billion.

Before Cleanup

During Cleanup

“From early in this project, Jacobshas been an integral part of theteam dedicated to restoring thearea after the ash spill. The Jacobsteam can be proud of the workwe’ve accomplished so far, and welook forward to the work to come.”

Steve McCrackenGeneral Manager

KINGSTON ASH RECOVERY PROJECT

A new dry-ash storage system is expected to preventfuture spills.

Jacobs assisted with aneducational initiative thatinformed Roane County highschool students about thereasons behind the spill, theimmediate response, ongoingcleanup efforts, and futureenvironmental monitoring.

Our community relations andpublic involvement teamsupported TVA’s near-dailyinteraction with a publicshocked by the ash spill.

Unexpected con^icts had to besolved fast. When constant railtraf]c in and out of the sitecaused public traf]c delays, webrought in rail experts to designmodi]cations to the track andswitching system that eliminatedthe problem.

An on-site team of 65 Jacobsstaff coordinated with the TVA,regulators and contractors,staying on top of a constantlychanging situation.


FEATURE

Diesel creates stylish new headquarters weaving itsfashion sense with Jacobs’ expertise

When edgy fashion company Diesel decided to build a new headquarters near

Vicenza, Italy, clearly no cookie-cutter corporate campus would do. Diesel built its

fame on high-quality, cutting-edge style, and the company needed a space that

combined functionality and fashion as effortlessly as a favorite pair of blue jeans.

Diesel’s solution? Rely on Jacobs. We had the right combination of engineering savvy, architectural

finesse, and construction know-how to get the job done.

Green. Bold. Comfortable.

On the 90,000-square-meter abandoned industrial site selected for its headquarters, Diesel needed to

combine multiple functions, including offices, a restaurant, sports facilities, an auditorium, warehouses,

a museum of Diesel fashions, and a daycare center. We helped organize the space, working closely with

Diesel employees to ensure the building supported smooth business operations. The campus

incorporates seven buildings arranged around two courtyards; the final design is unobtrusively stylish,

combining industrial sleekness with warm, natural materials. Every design decision took sustainability

into account, and the structure includes energy-efficient HVAC, a rainwater recycling system, green

roofs, integrated solar panels, and the largest green wall in Europe with more than 10,000 plants. These

efforts won the project Italy’s highest-level energy certification.

Fashionably Safe

A tight construction schedule meant addressing issues before they became problems. The team set a

goal of a zero-accident worksite, a challenge made more difficult by the large number of sub-

contractors and sub-sub-contractors — 209 total — representing more than a dozen nationalities. A

massive education and communication program in multiple languages was put into place to educate

workers on safety procedures, and ultimately the project achieved more than 762,000 hours without

time lost to accident. The headquarters opened on schedule and within budget in September 2010,

with Diesel staff finding their new home as comfortable and stylish as that favorite pair of jeans.

At 250 squaremeters, the green

wall in the receptionarea is the largest

in Europe.

Wall-to-WallS

tyle

Embracing natural quality, theDiesel design incorporateswarm, natural materials such ascopper and wood that slowlyage and change color.

Energy efficiency promotes asustainable workplace. Thecentral heating system producesthe thermal energy neededto heat/air condition thecomplex with twocogeneration units.

Careful space planningand programming, choice of thebest technological solutions forindoor comfort, andimplementation of the latestconstruction techniques,informed the design to achievean effective workplace.

DIESEL

“The Diesel Creative Team worked sideby side with Jacobs and the architectto put the vision of our Village intopractice. Designed on a human scale,with respect to the natural environment,the space promotes innovativesolutions. Jacobs’ understanding of our creative and business

ideas and their experience in the industry were a great support to

effectively drive our Headquarters project, perfectly responding to our

attitude towards innovation, free-thinking, and success.”

Motorized sun-shades and amotorized brise-soleil systemprotect the building from the hotsummer sun but allow passivesolar heating in the winter. Theresulting increased indoorcomfort enhances well-beingand supports creativity.

Illustrating thecommitment tosafety, Diesel pitchedin and offered morethan 500 items ofDiesel clothing asawards for improvingsite safety.


FEATURE

Eastman Chemical Company chooses Jacobs forsupport, maintenance of huge manufacturing complex

Eastman Chemical Company operates one of North America’s largest chemical

manufacturing sites in Kingsport, Tennessee. With more than 7,500 employees, the site

occupies some 900 acres and includes more than 550 buildings, of which 400 are

production facilities. Small issues require close attention — interruptions are time-

consuming and costly. Eastman needed a long-term alliance partner they could trust to work on

capital construction projects, and provide site maintenance support — an alliance partner as

dedicated to Eastman’s success as Eastman itself. They turned to Jacobs.

Formula for Success

As with all heavy industrial chemicals work, Eastman’s work is complex. The projects involve work

in an operating chemical manufacturing complex. Since Eastman and Jacobs became alliance

partners, we’ve completed more than 250 projects, including work on the cellulose triacetate (CTA)

and Eastman Tritan™ Copolyester projects. Add to this equation 37 projects Eastman terms critical

to its business, which Jacobs delivered on time and on budget. Our services also include

maintenance, reconfiguration of labs, as well as fabrication of piping, structural steel, and

equipment to support both maintenance and capital projects. Our team continuously looks for

areas to provide real dollar value to Eastman. Not including savings from budget performance, we

have implemented innovative ideas resulting in significant savings for Eastman.

Savings & Solutions

As the team enters its second year at Eastman, we are a key alliance partner becoming

more integrated with Eastman and its strategic vision for growth. Working together we are creating

an environment where collaborative teamwork, continual improvement, and trust build a

foundation for success.

Stable Solutions

“You have truly delivered on yourend of the partnership deal. Wethank you for owning the Eastmangrowth vision and look forward toa prosperous future together.”

Mark CoxVice President,Worldwide Engineering and Construction

EASTMAN CHEMICAL COMPANY

Photos courtesy of Eastman

Chemical Company

From left to right: Jeff Fain, Parker Smith,

“Eastman expected Jacobs to begood corporate citizens. In the]rst year, Jacobs hasdemonstrated their commitmentto the Kingsport community inmany ways. By serving on theBoard of Directors for theGreater Kingsport Chamber ofCommerce, United Way ofGreater Kingsport campaigncommittee, FunFestparticipation, and continuoussupport of a great number ofother charities and thevocational-technical trainingvenues in the local community,Jacobs has exceededEastman’s expectations in thisdimension.”

Parker SmithVice President and General

Manager, Worldwide Operations

Support and Global Quality

Eastman Chemical Company

“Jacobs’ outstanding focus on safety, attention to detailand control, and delivery of quality work product, in theface of a tremendous workload increase, has beenrefreshing and impressive.”

Mark CoxVice President, Worldwide Engineering and Construction

Eastman Chemical Company

Through our work with Eastman Chemical Companywe’ve become a part of thecommunity of Kingsport. Forexample, our employees raisedmore than $88,000 for KingsportUnited Way.

In FY 2011 we worked withEastman to achieve more than$2 million in JacobsValue+SM

savings.

Sarah Daly


FEATURE

Louisville Water Company channels Jacobs’ talents tobuild one-of-a-kind water supply system

Throughout its 150-year history, Louisville Water Company in Louisville, Kentucky, USA, has

never been content with merely adequate. They’ve always strived to be leaders in treating

water to high standards, staying ahead of the regulatory curve, and setting the benchmark for

other utilities. So when it needed to enhance its water supply, the company looked beyond

conventional strategies to a solution that improves safety, quality, and energy efficiency: riverbank

filtration (RBF). The approach relies on sand and gravel under the riverbed to naturally filter water.

Implementation in Louisville was tricky — it had to provide a large volume of water and needed to

satisfy the community’s desire to preserve the pristine riverscape view. Louisville Water needed a

partner with the skill and vision to execute a complex, creative project. They found one in Jacobs.

It Runs Deep

Making RBF work in Louisville required ground-breaking engineering — in more than one sense.

Previous bank filtration projects would have relied on multiple collector wells — large concrete

structures, each equipped with an above-grade pump station, but the public balked at ruining the view

of the Ohio River. Jacobs developed a new strategy: a mile-and-a-half-long tunnel in bedrock, 150 feet

below the ground surface that can channel up to 60 million gallons of water per day to a new pump

station on the treatment plant site, out of the public’s view. Louisville was the first in the world to

combine RBF with tunneling.

Crystal-Clear Savings

The RBF project began supplying water to the treatment plant in December 2010. RBF water contains

fewer impurities, requires less treatment, and naturally tastes and smells better. Water temperature

hovers around 55 degrees Fahrenheit year-round, reducing stress on the distribution system. Plus, it’s

cost-effective — yearly operating costs are expected to run about $500,000, compared to $1 to $2 million

for conventional filtration systems. The Louisville project won the 2011 Outstanding Civil Engineering

Achievement Award from the American Society of Civil Engineers (ASCE), the first time in the award’s

50-year history that it went to a water supply project.

Bread

th & Dep

th

When the public rejected theidea of 20 or so large wellsblocking the view of the OhioRiver, we helped come up with asolution that moved the bulk ofthe system underground.

As part of the tunneling process,we oversaw a comprehensivesubsurface investigation thathelped determine the ]naldesign.

“Our company has a 150-yearhistory of advancing the scienceof drinking water; this project isanother example of innovationthat will benefit our customersfor years to come.”

Greg HeitzmanPresident & Chief Executive Officer

LOUISVILLE WATER COMPANY

All photos are courtesy Louisville

Water Company except where noted

Riverbank ]ltrationnaturally reducesthe impurities inwater, reducingthe chemicals andenergy required fortreatment.

The RBF project is avital part of LouisvilleWater Company’sstatewide educationprogram to increasekids’ knowledgeabout the importanceof clean water.

The American Society of CivilEngineers noted the project,“represents a signi]cantcontribution to civil engineeringprogress and society.”

Shown at right: Louisville WaterOriginal Pumping Station andWater Tower, circa 1860

The Louisville project is one ofthe largest riverbank ]ltrationsystems in the world, and theonly one to use tunnels inconjunction with collector wells.

Jacobs staff worked hard tounderstand the concerns of thecommunity and ensure thoseconcerns were met.

Photo by David Hathcox/ASCE

M A R K E T P R O F I L E S

CHEMICALS 24

Organic and inorganic chemicals

Olefins

Specialty polymers

Polyolefins

Phosphates and potash

AEROSPACE & DEFENSE 30

Technical, engineering, andscientific mission support

Advanced aerospaceresearch/development/testand evaluation facilities andlaboratories

Information technology andenterprise information support

OIL & GAS 26

Gas compression, transmission,treatment, and handling

Sulfur recovery

Water treatment, disposal, andwater flooding

Offshore platforms and topsides

Oil and gas production

Heavy oil production and oil sandsextraction

REFINING 28& PETROCHEMICAL

Crude and vacuum units

Conversion: FCCU,hydroprocessing, coking

Clean fuels: gasoline and diesel

Reforming/aromatics

Sulfur removal and treatment

MISSION-CRITICAL 40& HIGH-TECH FACILITIES

High-energy physics installations

Nanoscience research andproduction facilities

Semiconductor facility base buildprogramming, tool installation, andsustaining engineering

Program management

Building Information Modeling (BIM)

Computational Fluid Dynamics(CFD) Modeling

POWER & UTILITIES 42

Utility and infrastructure masterplanning

Feasibility studies and conceptdesign

Central plant design

CHP/cogeneration

Electrical distribution/substationdesign

Commissioning

Gasification and carbon capturetechnology

Renewable technologies

MINING & MINERALS 44

Minerals processing

Hydrometallurgy

Electrorefining and electrowinning

Pyrometallurgy

Pelletizing technology

Materials handling

Bio-oxidation

Infrastructure

Sulfuric acid technology

Environmental

FOOD, BEVERAGE, FOREST 46& CONSUMER PRODUCTS

Food processing, packaging, andmaterials handling

Bottle, can, and keg packaging

Malting, brewing, fermenting, andblending processes

New paper machines and rebuilds

Mill optimization: energy/utilitymaintenance and shutdowns

Personal care product facilities

Converting


ENVIRONMENTAL, 36WATER & WASTEWATER

Environmental consulting,contaminated lands, flood control,accelerated environmental cleanup

Water-quality compliance and long-term groundwater monitoring

Nuclear facilities decontaminationand decommissioning

Chemical and explosive ordinancedemilitarization

Water/wastewater conveyance andtreatment

BUILDINGS 38

Government: administrative,security, and defense installations

Health/Research: replacementhospitals and advanced research

Education: K-12 and highereducation

Justice: courts, prisons, and jails

Corporate buildings and industrialfacilities

Retail and mixed-use centers,recreation complexes, andcommercial facilities

PHARMACEUTICALS 48& BIOTECHNOLOGY

Sterile products manufacturing

Bulk pharmaceuticals

Pharmaceutical finishing

Research and developmentlaboratories, and pilot plants

Biotechnology

Fine chemicals

AUTOMOTIVE 32& INDUSTRIAL

Building, equipment, and systemslayout and integration

Automotive test facilities:powertrain test cells, emissionschambers, climatic wind tunnels,and aero/acoustic wind tunnels

Test facilities operations,maintenance, and metrology

Modeling and simulation

www.jacobs.com 23

“We put client priorities ahead of our ownby thinking, ‘It is not about us.’ The keyto our growth is the success of ourclients’ projects.”

BengtJacobs, Vice President, OperationsGermany and Sweden

TRANSPORTATION 34

Roadways, bridges, and intelligenttransportation systems

Railroads and transit

Underground structures and tunnels

Locks, dams, ports, and marine

Aviation


Dow Corning

Third Asian Pillar Project Phase II

Engineering, procurement, construction, and pre-commissioning

Zhangjiagang, People’s Republic of China

Image courtesy of Dow Corning

“A sustainable business depends on a reputation of trust and deliveringresults. By getting deeply involved with our clients’ business objectives,

we advise our clients on their best possible investments, such asoptimizing a process versus new capital investment. Our core valuesprovide the tools for supporting every business decision we make.”

AméricoJacobs, Vice President, Latin America

Santiago, Chile

North American producers are also responding to both

the challenge and the opportunity posed by inexpensive

natural gas from shale. Older plants often can’t process

the gas, limiting options for some but opening doors for

those with the right capabilities. Shale gas production also creates

fewer valuable by-products such as propylene and butadiene,

increasing demand on those able to manufacture the

chemicals directly. In 2012, we expect manufacturers to

begin adding new facilities to take advantage of these

opportunities. We can assist these customers in

assessing market potential as well as in the design,

construction, management, and maintenance of

new or retrofitted facilities. We also help clients

make the most of their investments with cost-

cutting strategies such as global sourcing of

materials; our worldwide reach gives customers

maximum purchasing power with maximum

confidence, since our expediting and inspection

capabilities ensure quality control. Clients can draw on

the expertise of our staff around the world, and customers

in China, India, the Middle East, and Morocco can also

rely on local personnel who understand local conditions.

CONTROLLING COSTS

Our strengths in cost control were critical

on a recent project for a key client in this

market to design a new petrochemical

manufacturing plant. Our experts

proposed and developed design changes

totaling $103 million that resulted in

lowering the estimated installed cost

by approximately 11 percent.

www.jacobs.com 25

Slow, Steady Growth Sparks Construction, Expansion

Growth in the chemicals and basic resources market has been steady to strong through 2011. Demand was driven

by thriving Asia-Pacific, Middle Eastern, and Indian markets, offsetting slower recovery in Europe and North America.

Producers in these newer markets are challenging North American and European manufacturers, whose aging

facilities must compete against newer petrochemical plants in developing countries. North American and European

companies are responding by revamping existing facilities and evaluating the construction of new plants — investments

unthinkable a few years ago.

C H E M I C A L S

Artlant PTA (previously Artenius Sines PTA SA)

Artlant MegaPTA (Previously Artenius MegaPTA)

Basic and detailed engineering, procurement,and construction management services

Sines, Portugal

Arkema

Acrylic Acid Expansion

Engineering, procurement, and construction management

Clear Lake, Texas, USA


O I L & G A S

Accessing Reserves and Maximizing Resources Key to Sustained Growth

Growth in the oil and gas exploration and production sector remained strong through 2011 and should continue to pick

up in 2012. Expanding markets in India and China improved, while economic conditions in Europe and North America

increased demand for oil and gas worldwide, in particular in the Canadian oil sands. International oil companies

are responding by developing reserves, as well as getting more out of existing resources. Our expertise in a range of

production methods, combined with our commitment to safety and strength in project management, makes Jacobs

the go-to firm for oil and gas operators.

The long-term challenge for oil and gas companies

continues to be access to reserves, which are either in

remote locations or deep water. Pressure is on to

maximize the potential of existing resources. We can

help clients extend the life of their investment through both

brownfield development and modification and maintenance of

existing infrastructures. Operators are also looking to shale

gas as an alternative to conventional oil and gas.

Trends in this sector include exploration of shale gas

resources in India and Europe, and the buyout of

independent shale gas producers by major oil

companies. Clients seeking to expand into shale gas

turn to us for specialized expertise in this field.

Overall, our reach in the oil and gas market is

expanding as clients recognize our strengths in a

wide range of technologies and engineering

capabilities. Companies particularly value our

experience in project management systems for

increasingly complex projects, as well as our

geographic diversity that enables us to resource

projects locally and in extreme locations.

SAFETY INNOVATION

Our brownfield experience is evident

on a regenerative gas heater project for

Santos. The project team – an alliance

between Jacobs, UGL, and Santos –

developed an innovative equipment

design that eliminated a high-risk

maintenance activity on a gas heater

project. The project team received

Santos’ Directors EHS Award for

the design.

BP Products, North America

Whiting Refinery Modernization Project

Preliminary and detailed engineering, procurement,and modular fabrication

Whiting, Indiana, USA

EnerSea Transport, LLC

Centrica Energy Block 22 pre-FEED Marine CompressedNatural Gas Transport

Project management, gas plant engineering and design

Caribbean

Santos

Moomba Regenerative Gas Heater project

O&G Solutions is a joint venture between Jacobsand UGL, forming an EPC Alliance with Santos.The alliance has been implementing brownfieldsprojects for more than seven years.

Adelaide, South Australia, Australia

Shell (Operator), BP, and Chevron

Perdido Surveillance Engineering Support

Surveillance engineering support

Gulf of Mexico

www.jacobs.com 27

“We are here because of our clients and all our daily activities revolvearound this theme. In our day-to-day operations, we give the bestservice to our clients, which helps to build trust and goes a long wayin building a sustainable long-term relationship.”

KoyeliJacobs, General Manager, ProcessMumbai, India


ExxonMobil

BS2B Electrical Infrastructure Project


Baton Rouge, Louisiana, USA

“I strive to build team unity in our project work.Our success is inextricably tied to our clients’ success.

We are all in this together.”

ValettaJacobs, Process Engineer, Process Engineering Section Manager

Houston, Texas, USA

BP

G10 Project at BP Refinery Kwinana


Queensland, Australia

Image © BP p.l.c.

Booming Automotive Markets Fuel Continued Expansion

The improving economy resulted in overall growth for refining and petrochemical companies in 2011. Expansion is

expected to continue through 2012 with demand from the booming automobile market in India and China making up for

the slow recovery and unpredictable regulatory climate in North America and Europe. Oil companies are making

the most of their improved situation to reduce costs, increase efficiencies, and provide value. We’re well-positioned to

build long-term relationships with clients to help them achieve these goals.

R E F I N I N G & P E T R O C H E M I C A L

Investment activity in the refining and petrochemical business is

concentrated in the Middle East and Asia. Canada is also

experiencing substantial growth in heavy oil processing to the

point many operators are struggling to find experienced labor.

Our worldwide reach, supplemented by long-term alliances and

teaming agreements with local experts, allows us to support

clients wherever they need to be. The long-term market

situation is less certain in the United States and Europe.

Demand is expected to decline as fleet fuel efficiency

increases, and production costs are expected to rise as

environmental regulations tighten. Companies are

responding by increasing their feedstock diversity

and improving the conversion of conventional oil.

We provide clients process expertise in heavy oil

production, as well as with “bottom of the barrel”

projects that convert a higher percentage of crude

oil than traditional technologies. We can also develop

big-picture strategies that allow companies to cut costs

and improve efficiencies.

Hindustan Petroleum Corporation Limited (HPCL)

LOBS upgradation project

PMC for ISBL, design, and procurement assistancefor long lead items, and EPCM for OSBL facilities

Mumbai, India

EFFICIENT PRODUCTION

Evolving, tightening environmental

regulations are affecting many of our

clients, and we’re there to help develop

the project solutions needed to meet

those demands. For the G-10 project

at the BP Kwinana Refinery in Australia,

we revamped the refinery’s existing high-

pressure hydrotreater to better equip

the unit to reliably produce diesel at 10

parts-per-million (ppm) sulfur, meeting

Australian Federal Government regulations.

Indian Oil Corporation Limited

DHDT Reactor

Engineering, procurement, construction management,and commissioning assistance

Vadodara, India

www.jacobs.com 29

BUDGET-SMARTEFFICIENCY

Our skills at reducing costs were put to

the test at NASA’s new Thermal

Protection System Development Facility,

located at the Marshall Space Flight

Center. The facility develops insulation

materials to protect spacecraft from the

dangerous accumulation of ice on the

vehicle before launch. NASA planned to

build two processing facilities, one for

applying primer and another for spraying

insulating foam onto vehicles, but Jacobs

found a way to combine these activities

under one roof. This saved NASA

$10 million, allowing the agency to meet

its priorities in a budget-smart way.


Cost Pressures Spur Market Transitions

Transition characterized the aerospace and defense market in the past year, particularly in the United States,

United Kingdom, and Australia, the result of growing demand to reduce defense spending. In the U.S. aerospace market,

this pressure resulted in the cancellation of several initiatives, while aggressive cost cutting at the Department of Defense

has put new emphasis on doing more with less. However, in the last few months NASA has revamped its mission and

has a positive forward outlook.

A E R O S P A C E & D E F E N S E

Going forward, we anticipate these trends continuing,

although new opportunities may arise as commercial

operators develop private spaceflight. Opportunity also

exists in the related IT and facilities sectors worldwide.

Military customers are expected to select contractors primarily on the

basis of cost, seeking the “lowest price, technically acceptable” vendor.

As drawdowns in Iraq and Afghanistan continue, the

U.S. military needs training and logistics support to

accommodate returning troops. Our competitive costs

and high-quality services allow us to ease customers

through difficult times. For example, we can help

NASA retain the specialized skills essential to future

space programs. As new programs emerge, we

can help design, build, maintain, and operate

test facilities, as well as conduct the tests

needed to prove the capabilities of new

systems. We can assist defense customers by

providing quality services at low cost and have

the agility to step in at short notice.

Australian Customs and Border Protection

Acquisition of Customs Vessel Ocean Protector

Contract management and project support

Canberra, ACT, Australia

NASA Langley

ROME Hydro Impact Basin, Langley Research Center

Construction support, facilities maintenance and operations,site services, production support and integration, projectmanagement and engineering, safety, health andenvironmental services

Hampton, Virginia, USA

NASA Stennis

A-3 Test Facility, Stennis Space Center

Conceptual and detailed design, constructionmanagement services

Hancock County, Mississippi, USA

“We use internal experts who have been in the client’s position tohelp plan and evaluate the services provided. For example, as we developmission planning tools for the Air Force, we use ex-flyers,-navigators, and -aircrew members on requirements and testing teams.”

Jim Jacobs, Vice President/Deputy General ManagerFort Walton Beach, Florida, USA

NASA

Mid-Air Delivery System “MDS” Sled Project,Michoud Assembly Facility

Manufacturing of sled: procurement ofmaterial, fabrication, weld, proof load, andapplication of primer

New Orleans, Louisiana, USA

www.jacobs.com 31


Scania

Scania CD7 Climatic Wind Tunnel

Engineering, procurement, and construction

Södertälje, Sweden

Rendering

“In my job, everything I do is done with lenses focused from the clients’perspective. Translating everything we say, everything we do, helpsgive the client an inside view of how and why we make decisions.

It advances trust and deepens the relationship.”

JulesJacobs, Vice President, Northern Region Sales

Conshohocken, Pennsylvania, USA

www.jacobs.com 33

A U T O M O T I V E & I N D U S T R I A L

Global Economy Stabilizes, Recovery Accelerating

Market conditions continue to improve for automotive and industrial firms worldwide. Automobile manufacturers

experienced increased production for the third year running, with 76 million light vehicles expected to roll off the line

worldwide this year. Market share increased for U.S. automakers but declined for those in Japan affected by the

earthquake and tsunami; however, recovery is proceeding faster than expected, and Japanese manufacturers should

regain full production capability by the end of 2011. Meanwhile, the industrial sector improved as the global

economy stabilized.

Manufacturers worldwide are cautiously optimistic in

expecting growth to continue, though ongoing concerns

about the economy are cause for some uncertainty in the

2012 outlook, particularly in Europe where the debt crisis is

undermining confidence. The automotive market, however, is anticipating

steady improvement, with decline in the Eurozone offset by rising demand

in India and China. We are well-placed to help automotive and industrial

clients confront the various pressures they face. Automotive test

facilities are growing increasingly important to clients seeking

to improve fuel economy and develop active safety

systems. Our strength in the design/build and operation

of test facilities can improve the quality of data

gathered while cutting utility costs. Manufacturers

need to keep costs low while investing in their

facilities. Our depth of experience allows

us to draw on experts from around the

world, even providing expertise lost within

a company to retirement, downsizing or

outsourcing. We can also extend the life of

existing facilities through smart maintenance processes

that minimize downtime.

Windshear

Windshear Rolling Road Wind Tunnel

Design, construction, ongoing engineering, operations,management, and business development services

Concord, North Carolina, USA

CONTINUOUS IMPROVEMENT

Our skills are at work with a major

automotive client, where our maintenance

program has resulted in more than

$3.5 million of annual operational savings.

Our continuous improvement process

identified areas of inefficiency, and

experts tackled them one by one, allowing

the company to maximize its investment

in its facility.

Honda R&D

R&D Wind Tunnel

Engineering, procurement, and construction

Sakura, Japan

WilliamsF1

Wind Tunnels 1 and 2 Test Operating Systems

Software development, supply, and installation

Grove, Wantage, Oxfordshire, England, United Kingdom


Road Ahead: Speed and Innovation Merge to Create Opportunities

While some bright spots provided welcome opportunities, on the whole the transportation sector remained flat in 2011.

With economic recovery continuing to be sluggish, 2012 is unlikely to provide much change. That’s the big picture —

look at the details and positive signs emerge, ranging from major investment in freight rail in the United States to massive

expansion of the Chinese highway network. We’re working closely with clients to make the most of these opportunities,

building on long-term relationships with transportation authorities. We’re also helping cash-strapped governments take

advantage of alternative delivery methods and public-private partnerships to expand their infrastructure systems.

T R A N S P O R TA T I O N

New Jersey Department of Transportation

Route 36 Highlands Bridge over the Shrewsbury River

Detailed superstructure, engineering design, andconstruction phase services

Highlands and Sea Bright Boroughs, Monmouth County,New Jersey, USA

Signs of growth hold promise for the transportation sector

long term. In the United Kingdom, rail ridership is

climbing. In the Middle East, Qatar is embarking on major

infrastructure improvements in advance of the World Cup.

China continues to expand its highway network at a remarkable rate,

while India intends to double its highway project pipeline in 2012.

Investment in freight rail is up in the United States, and 20 states

have announced plans for high-speed rail. What many of

these projects have in common is an emphasis on speed

and innovation: Projects are often fast-tracked and many

rely on alternative financing and delivery methods. We’re

positioned to help clients with both challenges. Workshare

among offices and high-value design centers can

complete designs quickly and keep costs low, while our

experience in public-private partnerships, innovative

financing, and design/build helps clients save money and

balance risk. We offer these unique skills alongside our

full life-cycle capabilities, including planning,

environmental permitting, design, engineering,

construction and program management for highway,

rail, and aviation projects.

MULTI-OFFICE EXECUTION

Our expertise in multi-office project

execution was instrumental in helping the

North Texas Tollway Authority achieve

on-time delivery of the Sam Rayburn

Tollway/U.S. 75 Interchange project in

McKinney, Texas. In addition, the project

schedule demanded accelerated project

delivery, resulting in completely revised

schematic documents in three months,

and final plans, specifications, and

engineering documents completed in a

precedent-setting nine months.

Heathrow Airport Limited

Energy Infrastructure Project (EIP), Heathrow Airport

Project management, architecture, building services, civiland infrastructure, structural engineering, environmentaland fire engineering

London, England, United Kingdom

Highways Agency

Sustainable Development Framework

Strategic sustainability advice

Nationwide, England, United Kingdom

Image courtesy of the Highways Agency www.highways.gov.uk

Exposition Construction Authority

Exposition Light Rail Line, Phase 1

Construction management support services, includingplanning, project and construction management, projectcontrol, estimating, and field inspection

Los Angeles, California, USA

www.jacobs.com 35

“I’m constantly working to identify best practices and lessons learned.While we are aware of what we’re doing in a specific sector for aspecific client or group of clients, an innovative idea from elsewherein the company can often add the most value.”

ChrisJacobs, Inside Sales ManagerGlasgow, Scotland, United Kingdom


Atlanta Beltline, Inc.

Historic Fourth Ward Park – Phase I Project

Construction management

Atlanta, Georgia, USA

“Understanding the way our clients define success is essential.Delivering projects that meet specific client expectations

advances our client relationships.”

LevitteJacobs, Director, Federal Operations Sales

Oak Ridge, Tennessee, USA

www.jacobs.com 37

Old Meets New: Emerging Economies and Aging Infrastructure Add to Growth

The state of environmental, water, and wastewater industries varied across regions and markets in 2011. The thriving

economies of India, China, and the Middle East saw heavy investment in water and wastewater systems, while

cash-strapped governments in North America and Europe struggled to address the challenges of drought and aging

infrastructure. The environmental market experienced widespread growth in 2011, with worldwide spending up by

more than six percent over 2010.

E N V I R O N M E N TA L, W AT E R & W A S T E W AT E R

United States Army Corps of EngineersNew England District

New Bedford Harbor Superfund Site

Engineering, remediation/dredging, construction and construction oversight, modeling, and sampling

New Bedford, Massachusetts, USA

Looking forward, public sector clients in North America

and Europe are expected to face continued pressure to cut

spending through 2012, although new waste reduction

legislation in the European Union is expected to result in

new recycling and waste processing projects. Governments in Asia,

India, and the Middle East may invest in both conventional water

supply systems and water recycling and desalination

projects. With economic improvement, private sector

clients expanding facilities may increase spending on

environmental studies and permits. Our breadth and

depth of experience allow us to assemble teams of

experts who put together the pieces of water,

wastewater, and environmental projects. We can assist

public sector clients in maximizing taxpayer dollars

and private sector clients in the entire permitting

process. One of the greatest strengths of our

environmental practice is the ability to demonstrate

the benefits of sustainable solutions — we don’t

just promise results, we prove them. We also offer

expertise in innovative, cost-saving engineering

solutions such as tunneling and trenchless

technology for water and wastewater projects.

CARBON CONSCIOUS

Our skills in both environmental services

and water infrastructure came together

as part of the @One Alliance, delivering

$1.3 billion of capital improvements to

the U.K.’s Anglian Water Services.

Through construction and process

innovations, embodied carbon has been

reduced by 40 percent and operational

carbon by 120 percent as of April 2011,

coming close to achieving zero

construction waste.

Magnox Limited

Trawsfynydd decommissioning site

Working in joint venture to provide decommissioningservices across three waste streams

North Wales, Wales, United Kingdom

URENCO ChemPlants Limited

Tails Management Facility

Project management, design engineering, procurement,construction management, and inactive commissioning

Capenhurst, England, United Kingdom


B U I L D I N G S

Jacobs has planned, designed, and constructed buildings

for a variety of clients and markets for more than 60 years.

Our global presence and unique understanding of

contracting and delivery demands keep us in excellent

position to provide professional services worldwide. Our recent

acquisition of design firm KlingStubbins reinforces our

commitment and portfolio, increasing our leverage in the

pharma-bio, data center, government intelligence,

corporate headquarters/interiors, and science

and technology-based education markets

around the globe. Our philosophy balances

creativity, functional requirements, technical

excellence, and cost effectiveness. We strive to

develop unequaled building solutions for our

clients. Our integrated, Building Information

Modeling (BIM) driven project delivery technology

platform advances design, cost, schedule, and operations

data, while our programming and planning expertise allows

us to help clients determine the most appropriate design,

procurement, and construction options for their projects.

AN INTEGRATED APPROACH

Jacobs’ multi-discipline approach was

evident on the Northern Ballet project,

delivered as part of Jacobs’ Strategic

Design Alliance with the client, Leeds City

Council, and for which we provided a

range of services, including architecture,

engineering, and cost consultancy.

The integrated approach enabled us to

re-site the building, reducing groundwork

costs and allowing surplus land to be sold

off – thereby bringing to fruition a project,

which had been more than 10 years in

the making.

U.S. General Services Administration

Christopher S. Bond United States Courthouse

Construction management and commissioning

Jefferson City, Missouri, USA

Chinese Hospital Foundation

New Chinese Hospital

Full architecture and engineering design services

San Francisco, California, USA

Sustainable Design Trends and Construction in Asia, India Improve Market Outlook

The buildings market weathered the economic turbulence of recent years fairly well and continues to improve. We anticipate

ongoing investment in national security, government buildings, education, lab research and development, and mission-

critical facilities, while the global healthcare and high-tech markets are showing signs of strength. Looking forward, we expect

clients worldwide to continue to focus on total cost of ownership, asset management, and energy and life-cycle cost, with

emphasis on sustainable building design, appropriate technologies, and advanced materials. We anticipate an upsurge of

sustainable projects in the Middle East, and are well-equipped to help our clients there and around the globe meet their goals.

Internal Revenue Service

IRS Philadelphia Campus Consolidation

Strategic planning, space programming, conceptual andinterior design, and construction management

Philadelphia, Pennsylvania, USA

Leeds City Council

New Headquarters for Northern Ballet and PhoenixDance Theatre

Architecture, structural engineering, building services,cost consultancy, BREEAM assessor, constructiondesign, and management coordinator

Leeds, England, United Kingdom

www.jacobs.com 39

“With true understanding of a client’s priorities and expectationscomes a full comprehension of value and the definition of success.Those priorities become yours as well: There is no longer a need todecipher between the client’s priorities and mine.”

NinaJacobs, Principal, Asset Management and Assessment Services Fort Worth, Texas, USA


Chinese Academy of Sciences

Information Science Building

Architecture and engineering services

Beijing, People’s Republic of China

TonyJacobs, HSE Project Specialist

Houston, Texas, USA

“In our business we often work in integrated project teams in sharedoffice spaces, so it’s key to build personal relationships with client teammembers and work to meet their needs and exceed their expectations.Availability and reliability are two critical areas where we build trust and

show our clients the Jacobs difference.”

Mission-Critical and High-Tech market growth not

only remained firm in 2011, but also should

continue into 2012 and beyond. Experts note this

growth is sustainable, based on demand, not

speculative, as was seen in the run-away market of the late 1990s.

As they plan new facilities, clients emphasize efficiency.

They’re seeking the reduced energy costs and lower cost

of ownership that can result from “greening” the data

center. They also want intelligent facilities that can

ramp up as usage increases and ramp down as it

decreases, a strategy that can reduce operating costs

while satisfying business requirements. Public and

private market demand for high-computing

facilities is strong. As the private market strives

for energy efficiency, the public market looks for

consolidation into new facilities both owned

and leased. This includes expansion of cloud-

based services and cloud service providers. We

are poised to leverage both sides of this market.

www.jacobs.com 41

M I S S I O N - C R I T I C A L & H I G H - T E C H F A C I L I T I E S

Gaining Green: Efficiency and Agility Drive Tomorrow's High-Tech Facilities

Strong growth continued in the market for mission-critical and high-tech facilities for the tenth year running. Demand

in the sector is evolving as clients shift their strategy from a focus on keeping facilities and critical systems running

24/7/365 to a modular approach that can accommodate different levels of demand and operation depending on business

needs. At the same time, a paradigm shift in technology is allowing clients to dramatically improve the energy efficiency

of their operations. With our one-stop, turnkey services, we can help clients meet new needs and create the

mission-critical and high-tech facilities of tomorrow.

GLOBAL RESOURCES

Development of sophisticated

mission-critical and high-tech facilities

requires expertise in every member of the

design team, giving us a distinct

advantage. With experts on staff

worldwide, we can put together diverse

project teams from our own roster, as well

as provide design, program management,

commissioning, network consulting, and

procurement services. We also have

unmatched experience in energy

modeling, advance controls, building

information modeling, and infrastructure

modularity.

U.S. Army Corps of Engineers, Baltimore District

NGA Campus East Technology Center and Central Utility Plant

Architecture, engineering, and interior design services(RTKL/KlingStubbins joint venture)

Fort Belvoir, Virginia, USA

SLAC National Accelerator Laboratory

Linac Coherent Light Source I

Full architecture and engineering services, tunneling design,and contract administration

Stanford University, Menlo Park, California, USA


P O W E R & U T I L I T I E S

Bonneville Power Administration (BPA)

Build and replacement of transmission lines, substations,and ancillary communications projects

On-site construction administration and inspection services

Northwestern USA

Power & Water Utility Company for Jubail and Yanbu(MARAFIQ)

Steam Turbine Generators 5 & 6

Project management consultancy services

Yanbu, Saudi Arabia

Market Enjoys Strong Long-Term Forecast, Faces Questions About Nuclear Safety

The long-term outlook for the energy market remains bright, with worldwide demand expected to grow more than

50 percent through 2035. Short term is less certain, as the economies of North America and Europe continue to struggle.

The damage to the Fukushima nuclear plant in the earthquake and tsunami raised new questions about nuclear power

safety. With years of experience in nuclear engineering, we help clients address concerns and develop solutions to meet

their local needs. We’re ready to plan, design, and deliver conventional energy projects ranging from small-scale renewable

programs to multibillion-dollar power-generating facilities.

Industrialization and economic growth in emerging markets are

creating soaring demand for energy. Power companies seeking to

expand into these regions need partners with the right

combination of energy expertise and local know-how. Our strength

working across regions and local presence in countries, including India,

makes us an important player in this market. Meanwhile, U.S.

energy companies are turning to natural gas as an energy

source, and we’re involved in bringing several

gas-powered plants online. Energy investment in Europe

is concentrated on extending the lifetimes of aging

facilities, and European governments are also closely

examining their reliance on nuclear power in the

aftermath of Fukushima. Some have decided to shut

down existing nuclear plants, while others have

confirmed their support for nuclear energy and are

looking at improving safety measures. Worldwide, all

power and utility providers are seeking the greatest

return on their investment, making us a preferred

partner for energy projects. Our emphasis on continuous

improvement aligns with the market’s need for

cost-effective, high-quality solutions.

EFFICIENT UTILITIES

Efficiency was key for Texas A&M

University (TAMU), where we provided

detailed design, start-up, and

commissioning services for its new

Combined Heat & Power (CHP) Upgrade

project. This CHP system is expected to

provide the majority of the TAMU campus

electrical and thermal loads year round

for the next 25–30 years, and should

increase the process efficiency from

55–75 percent, saving the University

approximately $500,000 per month in

utility costs.

www.jacobs.com 43

Thermal Energy Corporation (TECO)

Master Plan Implementation Program

Master planning, technical reviews, on-site programand construction management

Houston, Texas, USA

Ashish Jacobs, Finance ManagerAbu Dhabi, United Arab Emirates

“By providing the right opportunity and intense focus, Jacobs not onlyextracts the best out of its employees, but also instills a sense ofdedication toward our clients. Our focus is all about clients’ priorities,and how we can not only meet but exceed their expectations.”


Compañía Minera Doña Inés de Collahuasi SCM

EPCM Nuevo Chancador Primario y Correas Transportadoras


Iquique, Tarapacá Region, Chile

“Our strategy puts client priorities first, and is agile enough toadapt to changing needs. Jacobs’ procurement strategy is

like the chameleon. It adapts to the color of our clients,without losing its own norms and standards.”

ZouJacobs, Procurement Director

Shanghai, People’s Republic of China

www.jacobs.com 45

Golden Opportunity: Vast Demand Drives Robust Investment

The mining and minerals market had a strong finish in 2011 and expects an even more successful 2012. Demand is

consistently outpacing supply, driving up commodity prices around the world. Our clients are responding by investing

in new development. Their efforts are limited by a tight labor market and economic concerns, but we’re able to help

overcome these challenges through our expertise in the issues unique to each mining region.

M I N I N G & M I N E R A L S

Masan Resources Corporation

Nui Phao Mining and Minerals Project

Engineering and procurement for a new mineralsprocessing facility at a poly-metallic deposit

Thai Nguyen Province, Northern Vietnam, Vietnam

CHALLENGING ENVIRONMENTS

We help clients operate in some of the

world’s most challenging environments.

For Antamina Mining Company, we’re

participating in the expansion project in

the Peruvian Andes at more than

14,500 feet. The expansion is expected

to allow Antamina Mining Company to

increase production while maximizing

investment in its current plant

and equipment.

Minera Chinalco Peru S.A.

Toromocho Project


Morococha District, Peru

Mining companies have seen the prices of several metals and

minerals soar — copper tripled over the past three years, and

gold rose by more than 50 percent in the same period. It’s a

case of supply not meeting demand, and clients are looking to

expand operations to take advantage of the market. Investment is limited

by the difficulty of finding workers — the mining labor market is tight in

several key regions — and concerns that governments may seek to grab a

greater share of mining profits. With our recent acquisition of Aker

Solutions ASA’s Process & Construction business, we are even

more well-positioned to help clients address these challenges

in places like Australia, South America, and Africa. Our

mining and minerals business operates worldwide,

targeting non-ferrous and ferrous metal markets,

precious metals, energy minerals such as uranium

and coal, and industrial and fertilizer minerals such

as phosphates and potash. Our long-term

relationships with clients and our global reach allow

customers to tap into an experienced and familiar

labor pool. Clients can count on us for new plant construction,

brownfield expansion, and maintenance, either through our

construction management practice or our specialized direct-hire

construction team. We also offer clients proprietary technologies

for sulfuric acid production and iron-ore pelletization.


Globalization, Efficiency and Specialty Products Offer Opportunities for Growth

Food, beverage, forest, and consumer products manufacturers continue to find ways to thrive in a largely flat market.

In 2011, food and beverage companies discovered innovative ways to cut costs and improve market share through

globalization, while mergers and acquisitions increased capabilities and offerings for many organizations. The forest

products market saw exceptional growth in the manufacture of specialty pulp used for products from filters to

pharmaceuticals, and fabrics to food additives.

F O O D, B E V E R A G E, F O R E S T & C O N S U M E R P R O D U C T S

Sustainability is expected to be a major theme in 2012.

Our clients recognize that cutting energy and water

costs improves their bottom line while a corporate

commitment to sustainable practices improves their

reputation in the market. We expect clients within the forest

products market to focus on getting the most out of existing

resources by mothballing inefficient assets and optimizing the

performance of critical facilities. Forest products clients in

the United States are also keeping a close eye on

pending regulation of boilers, which could require

significant investment in retrofitted or replacement

equipment. With hundreds of LEED-accredited

professionals on staff, we can help clients achieve

maximum reductions of water, carbon, waste, and

energy. We can also combine our strengths in

sustainability with our full-service engineering,

procurement, and construction management

services to develop the most cost-effective, “lean”

solutions for our clients. Our global reach allows us

to support clients moving production to emerging

markets either to find cost savings or to produce

products for the growing middle class in countries

such as India and China.

EFFICIENT, ON BUDGET

We provide expertise in vertical start-up

and immediate achievement of full

performance of a new line. For a new

high-speed packaging line for a

food-and-beverage client, we saved

thousands of dollars in start-up labor,

material, and lost-production costs and

increased production from 700,000 to

900,000 cases per year, all while staying

on time and within budget.

Marico, Ltd.

200TPD Edible Oil Facility

Engineering, procurement, construction management,and commissioning assistance

Himachal Pradesh, India

Shandong Chenming Paper Holdings, Ltd.

Zhanjiang Chenming (ZC) Chlorine Dioxide Plant

Technology, engineering, equipment, and site services,including technical advisory for installation of equipmentand commissioning

Zhanjiang, Guangdong province, People’s Republic of China

www.jacobs.com 47

Nestlé Servicios Industriales S.A. de C.v.

Toluca Line 3

Construction management support

Toluca, Mexico State, Mexico

“The key to providing the best value to our clients is to always listento their needs. I also always bear in mind the available Jacobs tools,in particular JacobsValue+SM. Achieving value helps promote clientsatisfaction and loyalty.”

RichardJacobs, Vice President, OperationsHong Kong


Chiesi Farmaceutici

Chiesi Farmaceutici Research & Development Centre

Masterplan, conceptual and programming, basic anddetailed design, permitting, procurement and constructionmanagement, commissioning. Statutory roles: safetycoordination in design and execution, a responsibility rolein construction management

Parma, Italy

“It is critical to truly understand our clients’ needs, expectations, andwhat brings value to them. We are often aligned with them, but

really listening and understanding their goals allows us to tap intoJacobs’ extensive resources and deliver flawlessly.”

DonnaJacobs, Deputy Program Manager

Kingsport, Tennessee, USA

The long-term outlook for pharmaceuticals and

biotechnology, based on growing demand from emerging

markets, is positive. The short term presents more

challenges, including expiring patents, a scarce pipeline,

and cost pressures from generics. Clients are responding by

optimizing every link in the supply chain, including, of course,

production facilities. We can help clients maximize their

investment with our Facility of the Future model, which

balances initial costs, technology trends, and long-

term client needs to develop the most

cost-effective design for the entire life of the facility.

We’re also able to assist companies expanding

into emerging markets through our global delivery

model and staff on the ground in key regions.

Our experts provide turnkey services, from

consulting and conceptual studies, process

development and value engineering, to

construction management and

commissioning. We can even step in

with site services or act as owners’

representatives for clients seeking to

outsource non-core operations.

P H A R M A C E U T I C A L S & B I O T E C H N O L O G Y

Meeting Short-Term Challenges Anticipated to Result in Long-Term Growth

The future holds promising opportunities for the pharmaceuticals and biotechnology market, even though 2011, other

than experiencing a slight uptick in the biotechnology sector, was largely flat. While market pressures challenge clients to

stay competitive, long-term economic growth in regions such as India, China, Singapore, and Brazil is anticipated to

create new customers for drugs and medical devices. We help clients make the most of the changing marketplace with

expertise in developing specialized facilities that save money upfront while remaining flexible into the future.

Productos Roche, S.A. de C.V.

Granulation Line in Module 4

Basic and detail engineering

Toluca, Mexico State, Mexico

FOCUS ON SAFETY

Integrated teamwork and a focus on safety

played a key role in the project execution of

the Chiesi Research & Development Center

in Parma, Italy. The combined team of Chiesi

and Jacobs focused on meeting quality,

schedule, and cost targets, using a

sustainable design approach to minimize

energy consumption and waste production.

Our experience in construction

management allowed site activities to be

executed in 29 months, according to

schedule and with more than 740,000 work

hours without injuries. This project also

is the winner of Jacobs’ President’s

BeyondZero® Excellence Award in the

Construction category, for exemplifying

the best of our safety culture.

GlaxoSmithKline (GSK)

Alliance Contract, Glaxo Wellcome Manufacturing Pte. Ltd.

Engineering, procurement, construction management,and validation

Jurong, Singapore

www.jacobs.com 49

We are a relationship-based company. The relationships

between our clients and our employees are the heart

of our business. Worldwide, we work every day to really

listen and understand the needs of our clients, and to meet their project goals

and business objectives. Our relationship-based business model strengthens

our long-term client relationships, leads to successful projects,

and to repeat business. Our clients and employees describe the

benefits of their relationships best in their own words.

NourJacobs, Telecommunication Engineer Al-Khobar, Saudi Arabia

“We stay in constant contact with our clients to keepthem informed and updated on the progress of their projects.By being efficient, ethical, and transparent, we honor ourvalues as well as the values of our clients, and build arelationship of trust.”

50

“Based on their experience as industry leaders, as well as on a long-termcollaboration on our important projects, we awarded Jacobs the EPCM contractfor this strategic investment. Jacobs delivered on promise, embracing ourimpulse toward innovation, working with us to put our vision into practice, andfully meeting our requirements of a sustainable facility to be our ‘House ofResearch,’ designed to promote the exchange of ideas, scientific collaborations,and innovation.”

Andrea ChiesiR&D Planning and Control Director

CHIESI FARMACEUTICI

Success Through

The Relationship

“Relationships are built on trustand tested on performance. Weoperate in “task-force” environmentswhich enhance project teamcommunications and foster close

client and discipline relationships.Our project teams spanmultiple geographies, butfunction as a unified teamwhich practicestransparentinformation sharing.”

“Emphasizing safety every day, in allareas of my job, brings added value to our

clients. I promote BeyondZero® throughleading by example, caring for

employees and, by extension,their families.”

Anthony

Jacobs, Electrical Foreman

Texas City, Texas, USA


“[The Moomba Regenerative Gas Heater project] is a great example wheresafety has been improved, costs reduced, and productivity improvedthrough clever design.”

Andrew AntonyGeneral Manager, Engineering, Safety, and Environment

SANTOS LTD.

“As the primary engineering service provider for the Neenah Cold Spring Facility expansionproject, I was especially impressed by the teamwork and individual commitment shown by each ofthe Jacobs engineers throughout the project and especially during the technical checkout phaseof the project. Everyone worked toward the common goal of exceeding expectations and leavingnothing to chance. The results were spectacular — our project was safely completed ahead ofschedule, within budget, and production reached end of curve in record time.”

Thomas VanselowProject Manager

KIMBERLY-CLARK CORPORATION

Laura

Jacobs, Manager Civil-Structure-Architecture

Conshohocken,Pennsylvania, USA

“We achieve value for our clients byreally listening to what their issues are,thinking about it as a group, and

bringing all the Jacobs skills tohelp them solve theirproblems. In short, wedevelop a focused solutionusing our whole toolkit andpicking the most appropriatesupport for them.”

“We strive to understand our clients’specific goals and work to achievethem, no matter how challenging.

The clients receive additionalvalue from Jacobs’ toolsand practices, such asJacobsValue+SM andBeyondZero®.”

A.L.

Jacobs, Managerof Construction

Navi Mumbai, India

“Jacobs’ staff has worked extremely well with us as part of our integrated managementapproach to field operations. The Jacobs team has been a significant contributor to thesuccess of the project.”

Richard D. Thorpe, P.E.Chief Executive Officer

EXPOSITION METRO LINE CONSTRUCTION AUTHORITY

“The MAF team did an outstanding job of supporting the Capsule Parachute AssemblySystem (CPAS) Project in preparation for the September drop test by manufacturing theMid-Altitude Deployment System (MDS). You folks stepped up when we were in a bindand delivered on time and on cost, even when we came to you late in the game. The CPASteam was very impressed with the product and the capability at MAF, look forward tocontinue working with you folks. Thanks.”

Bruce W. SauserChief, Systems Architecture & Integration Office

JOHNSON SPACE CENTER, NASA

Selma

Jacobs, Vice President,Operations

Glasgow, Scotland,United Kingdom


B O A R D O F D I R E C T O R S

Thomas M.T. NilesDirector

Vice Chairman of UnitedStates Council forInternational Business;Former Ambassador toCanada

Linda Fayne LevinsonDirector

Former Partner ofGRP Partners

Craig L. MartinPresident& Chief Executive Officer

Noel G. WatsonChairman of the Board

Peter J. RobertsonDirector

Former Vice Chairman ofChevron Corp.

Linda K. JacobsDirector Emerita

John F. CoyneDirector

President & ChiefExecutive Officerof Western DigitalCorporation

Edward V. FritzkyDirector

Retired. FormerDirector of Amgen;Former President &Chairman of theBoard of ImmunexCorporation

Joseph R. BronsonDirector

Principal & ChiefExecutive Officer,TheBronsonGroup, LLC

Benjamin F. MontoyaDirector

Retired. FormerCommander of NavalFacilities EngineeringCommand

Robert C. Davidson, Jr.Director

Retired. FormerChairman & ChiefExecutive Officer ofSurface ProtectionIndustries, Inc.

John P. JumperDirector

Retired. FormerChief of Staff,U.S. Air Force

www.jacobs.com 53

54 2011 Summary Annual Report54 2011 Summary Annual Report54 2011 Summary Annual Report

L E A D E R S H I P

Jay Michael CoyleGroup Vice President,Middle East

Micheal T. AutreyGroup Vice President,Southern

Cora L. CarmodySenior Vice President,Information Technology

Terence D. HagenGroup Vice President,Technology

Thomas R. HammondExecutive Vice President,Operations

www.jacobs.com 55www.jacobs.com 55www.jacobs.com 55www.jacobs.com 55

Allyn B. TaylorGroup Vice President,India

Christopher E. NagelGroup Vice President,Eastern

Colin M. EdwardsSenior Vice President,Quality & Safety

Robert V. PragadaGroup Vice President,Northern

Robert G. NorfleetGroup Vice President,Technology


L E A D E R S H I P


William C. Markley, IIISenior Vice President,General Counsel

Dante V. CaravaggioSenior Vice President,Heavy Process Sales

J. Gary MandelExecutive Vice President,Operations

H. Thomas McDuffie, Jr.Group Vice President,Global Buildings NA

Rogers F. StarrPresident,Jacobs Technology, Inc.

www.jacobs.com 57www.jacobs.com 57

Thomas J. QuinnGroup Vice President,Asia-Pacific

Patricia H. SummersSenior Vice President,Global Human Resources

George A. Kunberger, Jr. Executive Vice President,Global Sales & Marketing

Philip J. StassiGroup Vice President,Global Field Services

John W. Prosser, Jr.Executive Vice President,Finance, Administration& Treasurer


L E A D E R S H I P


William J. BirkhoferSenior Vice President,Public Sector Sales

Gregory J. LandryExecutive Vice President,Operations

Andrew F. KremerGroup Vice President,Americas Mining& Minerals

John McLachlanSenior Vice President,Strategy & Acquisitions

E.J. (Chip) Mitchell, Jr.Group Vice President,Western

www.jacobs.com 59www.jacobs.com 59

Kevin J. McMahonGroup Vice President,North AmericanInfrastructure

Robert C. MathaGroup Vice President,Mainland Europe

Nazim G. ThawerbhoySenior Vice President& Controller

Robert A. IrvinGroup Vice President,U.K. Process

Robert S. DuffGroup Vice President,U.K. Infrastructure


FORWARD-LOOKING STATEMENTS AND OTHER SAFE HARBOR APPLICATIONS

Statements included in this 2011 Summary Annual Report that are not based on

historical facts are “forward-looking statements,” as that term is defined in the private

Securities Litigation Reform Act of 1995. 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

involve risks and uncertainties that could cause the results of the Company to differ

materially from what is contained in these forward-looking statements. You should not

place undue reliance on these forward-looking statements.

When used in this 2011 Summary Annual Report, words such as “anticipate,” “estimate,”

“expect,” “seek,” “intend,” “plan,” “believe,” and similar words are intended in part to

identify forward-looking statements. Some of the factors that could cause or contribute

to such differences are listed and discussed in Item 1A—Risk Factors of the Company’s

most recent Annual Report on Form 10-K and include the following: exposure to

financial losses and civil and criminal liabilities due to failure to maintain safe work sites

or to comply with various government regulations or contracts; negative conditions in

the credit markets; fluctuations in commodity prices; the cyclical nature of the markets

in which the Company and its clients operate; loss of one or a few customers or projects;

adjustment, cancellation or suspension of contracts in the Company’s backlog; the

outcome of pending and future claims and litigation; employee, agent or partner

misconduct; the risks and uncertainties relating to acquiring other businesses and

operating internationally; actual results differing from estimates and assumptions in the

Company’s financial statements; and the Company’s ability to hire and retain qualified

personnel. The list set forth in Item 1A—Risk Factors of the Company’s most recent

Annual Report on Form 10-K and the list set forth above—are not all-inclusive, and the

Company undertakes no obligation to release publicly any revisions or updates to any

forward-looking statements that are contained in this 2011 Summary Annual Report.

Readers of this 2011 Summary Annual Report are encouraged to read carefully the

Company’s most recent Annual Report on Form 10-K (including discussions contained

in Items 1—Business, 1A—Risk Factors, 3—Legal Proceedings, and 7—Management’s

Discussion and Analysis of Financial Condition and Results of Operations contained

therein) and other documents the Company files from time to time with the United

States Securities and Exchange Commission for a further description of some of the

factors that could cause actual results to differ from the forward-looking statements

contained herein.

A N A LY S I S

www.jacobs.com 61

REPORT BY MANAGEMENT

The management of Jacobs Engineering Group Inc. has prepared the accompanying

consolidated financial statements and other financial information included in this

summary annual report and is responsible for their integrity and objectivity.

Management maintains a system of internal controls over financial reporting which is

designed to provide reasonable assurance that, among other things, transactions are

properly authorized, executed, and recorded, and that the Company’s records and

reports are reliable. Management’s Report on Internal Control over Financial Reporting

appears under Item 9A in the Company’s 2011 Annual Report on Form 10-K filed with

the Securities and Exchange Commission.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON CONDENSEDFINANCIAL STATEMENTS

The Board of Directors and Stockholders of Jacobs Engineering Group Inc.

We have audited, in accordance with the standards of the Public Company Accounting

Oversight Board (United States), the consolidated balance sheets of Jacobs Engineering

Group Inc. and subsidiaries at September 30, 2011 and October 1, 2010 and the related

consolidated statements of earnings, comprehensive income, stockholders’ equity, and

cash flows for each of the three fiscal years in the period ended September 30, 2011 (not

presented separately herein) and in our report dated November 21, 2011, we expressed

an unqualified opinion on those consolidated financial statements. In our opinion, the

information set forth in the accompanying condensed consolidated financial statements

is fairly stated in all material respects in relation to the consolidated financial statements

from which it has been derived.

We also have audited, in accordance with the standards of the Public Company

Accounting Oversight Board (United States), the effectiveness of Jacobs Engineering

Group Inc. and subsidiaries’ internal control over financial reporting as of September

30, 2011, based on criteria established in Internal Control - Integrated Framework

issued by the Committee of Sponsoring Organizations of the Treadway Commission and

our report dated November 21, 2011 (not presented separately herein) expressed an

unqualified opinion thereon.

Los Angeles, California

November 21, 2011


Dollars in thousands, except per share information

F I N A N C I A L D A TA

2011 2010 2009 2008

Results of Operations:

Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376 $ 11,252,159

Net earnings attributable to Jacobs 331,029 245,974 399,854 420,742

Financial Position:

Current ratio 1.53 to 1 2.23 to 1 2.17 to 1 1.74 to 1

Working capital $ 1,099,308 $ 1,527,589 $ 1,522,548 $ 1,173,237

Current assets 3,157,353 2,767,042 2,818,449 2,750,234

Total assets 6,049,428 4,683,917 4,428,614 4,278,238

Long-term debt 2,042 509 737 55,675

Total Jacobs stockholders’ equity 3,312,988 2,859,048 2,625,913 2,245,147

Return on average equity 10.73% 8.97% 16.42% 20.58%

Backlog:

Technical professional services $ 9,100,100 $ 7,588,900 $ 8,209,300 $ 8,085,200

Total 14,289,800 13,202,000 15,219,400 16,696,600

Per Share Information:

Basic EPS $ 2.63 $ 1.98 $ 3.26 $ 3.47

Diluted EPS 2.60 1.96 3.21 3.38

Stockholders’ equity 25.93 22.71 21.14 18.30

Average Number of Shares of Common

Stock and Common Stock

Equivalents Outstanding (Diluted) 127,235 125,790 124,534 124,357

Common Shares Outstanding

At Year End 127,785 125,909 124,230 122,701


2011 20 2007 2006 2005 2004 2003 2002

R $ 8,473,970 $ 7,421,270 $ 5,635,001 $ 4,594,235 $ 4,615,601 $ 4,555,661

N 287,130 196,883 131,608 115,574 112,645 97,475

C 1.78 to 1 1.75 to 1 1.70 to 1 1.58 to 1 1.59 to 1 1.32 to 1

W $ 1,001,644 $ 776,766 $ 552,336 $ 397,599 $ 358,683 $ 234,486

C 2,278,078 1,817,961 1,337,431 1,083,513 970,097 974,903

T 3,389,421 2,853,884 2,378,859 2,093,819 1,688,096 1,688,093

L 40,450 77,673 89,632 78,758 17,806 85,732

T 1,843,662 1,423,214 1,165,780 1,027,802 859,669 703,722

R 17.58% 15.21% 12.00% 12.25% 14.41% 14.92%

B

T $ 6,188,500 $ 5,153,400 $ 4,329,000 $ 3,989,000 $ 3,383,200 $ 3,045,600

T 13,585,800 9,777,700 8,643,000 7,452,500 7,041,000 6,674,200

B $ 2.42 $ 1.69 $ 1.15 $ 1.03 $ 1.02 $ 0.90

D 2.35 1.64 1.12 1.01 1.00 0.88

S 15.34 12.06 10.03 9.06 7.70 6.42

S

E 122,226 120,373 117,379 114,867 112,784 110,792

A 120,222 117,992 116,260 113,397 111,672 109,531

www.jacobs.com 63


08 09 1002 03 04 05 06 07

$4,555,661

$4,615,601

$4,594,235

$5,635,001

$7,421,270

$8,473,970

$11,252,159

$9,915,517

$11,467,376

11

$10,381,664

0802 03 04 05 06 07 09 10

$7,041,000

$7,452,500$6,674,200

$16,696,600

$15,219,400$13,585,800

$13,202,000

11

$14,289,800

$9,777,700

$8,643,000

0802 03 04 05 06 07 09 10

$1.64

$2.35

$3.38

$1.96

11

$2.60

$3.21

$1.00 $1.12 $0.88 $1.01

0802 03 04 05 06 07

14.92%14.41%

12.25%12.00%

15.21%

17.58%

8.97%

20.58%

16.42%

09 10

10.73%

11

REVENUESin thousands

TOTAL BACKLOGin thousands

EARNINGS PER SHARE (DILUTED) RETURN ON AVERAGE EQUITY


www.jacobs.com 65

2011 2010 September 30 October 1

Assets

Current Assets:

Cash and cash equivalents $ 905,633 $ 938,842

Receivables 2,077,494 1,659,844

Deferred income taxes 110,680 117,698

Prepaid expenses and other current assets 63,546 50,658

Total current assets 3,157,353 2,767,042

Property, Equipment and Improvements, Net 284,633 215,032

Other Noncurrent Assets:

Goodwill 1,745,708 1,118,889

Miscellaneous 861,734 582,954

Total other noncurrent assets 2,607,442 1,701,843

$ 6,049,428 $ 4,683,917

Liabilities and Stockholders’ Equity

Current Liabilities:

Notes payable $ 566,031 $ 79,399

Accounts payable 351,299 303,877

Accrued liabilities 837,217 661,278

Billings in excess of costs 276,739 194,899

Income taxes payable 26,759 —

Total current liabilities 2,058,045 1,239,453

Long-term Debt 2,042 509

Other Deferred Liabilities 665,956 579,027

Commitments and Contingencies

Stockholders’ Equity:

Capital stock

Preferred stock, $1 par value,

authorized—1,000,000 shares; issued and outstanding—none — —

Common stock, $1 par value,

authorized—240,000,000 shares; issued and outstanding—127,784,884

shares and 125,909,073 shares, respectively 127,785 125,909

Additional paid-in capital 858,460 767,514

Retained earnings 2,564,281 2,251,366

Accumulated other comprehensive loss (237,538) (285,741)

Total Jacobs stockholders’ equity 3,312,988 2,859,048

Noncontrolling Interests 10,397 5,880

Total Group stockholders’ equity 3,323,385 2,864,928

$ 6,049,428 $ 4,683,917

CONSOLIDATED BALANCE SHEETS

In thousands, except share information



2011 2010 2009 September 30 October 1 October 2

Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376

Costs and Expenses:

Direct costs of contracts (8,822,171) (8,582,912) (9,906,493)

Selling, general and administrative expenses (1,040,575) (932,522) (940,310)

Operating Pro]t 518,918 400,083 620,573

Other Income (Expense):

Interest income 4,917 4,791 13,145

Interest expense (8,799) (9,874) (2,916)

Miscellaneous income (expense), net 1,625 (3,066) (6,670)

Total other income (expense), net (2,257) (8,149) 3,559

Earnings Before Taxes 516,661 391,934 624,132

Income Tax Expense (181,440) (145,647) (224,919)

Net Earnings of the Group 335,221 246,287 399,213

Net (Earnings) Loss Attributable to Noncontrolling Interests (4,192) (313) 641

Net Earnings Attributable to Jacobs $ 331,029 $ 245,974 $ 399,854

Net Earnings Per Share:

Basic $ 2.63 $ 1.98 $ 3.26

Diluted $ 2.60 $ 1.96 $ 3.21

CONSOLIDATED STATEMENTS OF EARNINGS

In thousands, except share information


www.jacobs.com 67

2011 2010* 2009 September 30 October 1 October 2

Cash Flows from Operating Activities:

Net earnings attributable to the group $ 335,221 $ 246,287 $ 399,213

Depreciation and amortization 95,370 88,495 86,342

Write-off of the SIVOM receivable — 25,894 —

Purchase accounting gain (3,716) — —

Stock based compensation, net of excess tax bene]ts 22,247 21,477 20,571

Equity in earnings of investees, net of dividends (8,729) (1,759) (1,808)

Changes in working capital (183,405) (160,908) 27,360

Other, net (20,498) 1,619 (19)

Net cash provided by operating activities 236,490 221,105 531,659

Cash Flows from Investing Activities:

Additions to property and equipment, net of disposals (94,889) (34,696) (53,258)

Acquisitions of businesses, net of cash acquired (711,421) (259,492) (23,329)

Other, net 4,474 (104,298) (16,519)

Net cash used for investing activities (801,836) (398,486) (93,106)

Cash Flows from Financing Activities:

Net change in long-term borrowings 586,492 (217) (45,963)

Net change in short-term borrowings (82,339) 58,090 15,933

Proceeds from issuance of common stock 45,943 36,209 43,361

Other, net 6,837 1,548 (52,334)

Net cash provided by (used for) ]nancing activities 556,933 95,630 (39,003)

Effect of Exchange Rate Changes (24,796) (13,026) 29,649

Increase (Decrease) in Cash and Cash Equivalents (33,209) (94,777) 429,199

Cash and Cash Equivalents at Beginning of Period 938,842 1,033,619 604,420

Cash and Cash Equivalents at End of Period $ 905,633 $ 938,842 $ 1,033,619

Other Cash Flow Information:

Interest paid $ 7,800 $ 11,700 $ 1,700

Income taxes paid $ 139,200 $ 170,800 $ 255,500

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

In thousands

* Restated to reflect the effect of the write-off of a $25.9 million claim receivable related to the SIVOM judgment previously reported in cash flows from investing

activities in cash flows for operating activities.

© Copyright 2012 Jacobs Engineering Group Inc. All rights reserved.

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are trademarks of Jacobs Engineering Group Inc.

20048 CP 01/12

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Stockholder Contact

A copy of our Annual Report on Form 10-K,

as filed with the Securities and Exchange

Commission, will be furnished without charge to

any stockholder upon written request to:

John W. Prosser, Jr.

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Finance and Administration and Treasurer

Jacobs Engineering Group Inc.

P.O. Box 7084

Pasadena, California 91109-7084

+ 1.626.578.3500

Image Credits

Pages 8-9, John Connor Press Associates Ltd.,

Andy James, Adrian Kerry, Leigh Quinnell,

and South East Water

Page 9, copyright Igor Terekhov

Pages 16-17, Daniele Domenicali, photographer,

with the exception of the green-roof image on the

right-hand foldout

ON THE COVER

From back to front, left to right

Peel Media LtdMediaCityUK

Salford Quays, England, United Kingdom

Louisville Water CompanyRiverbank Filtration Project

Louisville, Kentucky, USA

Exposition Construction Authority Exposition Light Rail Line, Phase 1

Los Angeles, California, USA

ExxonMobilBS2B Electrical Infrastructure Project

Baton Rouge, Louisiana, USA

Dow CorningThird Asian Pillar Project Phase II

Zhangjiagang, People’s Republic of China

Image courtesy of Dow Corning

Thermal Energy Corporation (TECO)Master Plan Implementation Program

Houston, Texas, USA

DieselCorporate Headquarters

Vicenza, Italy

NASAAlpha Magnetic Spectrometer

Houston, Texas, USA

Leeds City CouncilNew Headquarters for Northern Ballet and

Phoenix Dance Theatre

Leeds, England, United Kingdom

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recovered ]ber; and was produced using electricity

generated from renewable resources, such as wind,

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1111 South Arroyo Parkway 91105Post Office Box 7084Pasadena, California 91109-7084 USA

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