2020 ANNUAL REPORT 2020 ANNUAL REPORT 2020 ANNUAL REPORT 2020 ANNUAL REPORT CEO MESSAGE: BOARD OF DIRECTORS AND DEAR EMPLOYEES, PARTNERS SHAREHOLDER INFORMATION AND SHAREHOLDERS: In reflecting on the astonishing challenges the world faced during our fiscal year 2020, I’m inspired and humbled by the effort and fortitude put forth by so many, both within and beyond Jabil – What a year! By the time we completed our first fiscal quarter of 2020, we had what appeared to be the start of another solid year for Jabil, as evidenced by our record Q1 revenue of $7.5 billion. Then, out of nowhere, we abruptly learned firsthand of the novel coronavirus directly from our team in Wuhan, China. What followed would TIMOTHY L. THOMAS A. MARK T. ANOUSHEH MARTHA F. test and stress: (a) the fabric of our people; (b) the purpose in our approach; and (c) the resiliency of our MAIN SANSONE MONDELLO ANSARI BROOKS commercial portfolio. And I couldn’t be prouder of the results. Chairman of the Board Vice Chairman of Chief Executive Officer Director since 2016 Director since 2011 Director since 1999 the Board Director since 2013 Age 54 Age 61 Age 63 Director since 1983 Age 56 Age 71 We’re fundamentally in the “people business.” Our people are Jabil’s most important and valued differentiator, making us who we are today. CHRISTOPHER S. JOHN C. STEVEN A. DAVID M. KATHLEEN A. HOLLAND PLANT RAYMUND STOUT WALTERS – Mark T. Mondello Director since 2018 Director since 2016 Director since 1996 Director since 2009 Director since 2019 Age 54 Age 67 Age 65 Age 66 Age 69 Jabil’s Board of Directors has standing Audit, Compensation, Cybersecurity and Nominating & Corporate Governance Committees. THE FABRIC OF OUR PEOPLE AUDIT: Raymund (Chair), Ansari, Holland, Walters COMPENSATION: Stout (Chair), Brooks, Plant We’re fundamentally in the “people business.” Our In parallel, our employees established first-rate people are Jabil’s most important and valued COVID-19 processes and protocols and openly NOMINATING & CORPORATE GOVERNANCE: Sansone (Chair), Brooks, Stout differentiator, making us who we are today. We derive shared these COVID-related safety measures with CYBERSECURITY: Ansari (Chair), Holland and Main innovative solutions and advance our service offerings customers, suppliers and competitors on an on- Jabil’s Corporate Governance Guidelines, the charters of these committees and the Jabil Code of Conduct can be found on Jabil’s website: www.jabil.com through non-parochial collaboration, where customers going basis. are top-of-mind day-in and day-out. For all on this, I again say – Thank you. When I think about the last eight months of FY20, they ANNUAL MEETING TRANSFER AGENT AND REGISTRAR INVESTOR INQUIRIES & INFORMATION The transfer agent maintains shareholder Investor Relations were anything but typical as the impact of COVID-19 January 21, 2021 at 10:00 AM ET THE PURPOSE IN OUR APPROACH records for Jabil Inc. Please contact the Jabil Inc. Virtual Meeting adversely engulfed all of us, directly and indirectly. agent directly for change of address, transfer 10560 Dr. Martin Luther King Jr. Street N. of stock, replacement of lost certificates, and Additionally, much of the past year was www.virtualshareholdermeeting.com/JBL2021 St. Petersburg, Florida 33716 I want to THANK all of our Jabil employees – employees dividend checks. Phone: 877.498.8865. who number more than 260,000 strong and reside in unquestionably characterized by global tensions, E-mail: [email protected] The Annual Meeting proxy statement 30+ countries. They exhibited the very qualities which set divisiveness and on-going social injustice. At Jabil we were neither immune nor tone deaf to the sweeping contains a description of procedures to INDEPENDENT REGISTERED PUBLIC Our Form 10-K for our fiscal year ended Jabil apart – tenacity, perspective, empathy and stamina. sentiments. Much to the contrary, as our culture and nominate persons for election as directors ACCOUNTING FIRM August 31, 2020 has been filed with the Ernst & Young LLP audited the consolidated or to introduce an item of business at that Securities and Exchange Commission and Through it all, our teams optimized product output for value-set were founded on one simple premise: a financial statements and the effectiveness of meeting, as well as certain Securities and is included as a part of this Annual Report. customers, while providing critical support to “essential deep and unrelenting RESPECT for every individual. internal control over financial reporting of Jabil An online version of the 2020 Annual Report businesses” fighting the pandemic in the face of real This is a core premise which has endured and Exchange Commission requirements for the fiscal year ended August 31, 2020. A risk and tremendous adversity. remains a priority for Jabil today. regarding the date by which we must receive representative of Ernst & Young LLP is is available at: shareholder proposals for inclusion in our expected to be present at the Annual Meeting proxy materials. and available to respond to questions. https://investors.jabil.com 2020 ANNUAL REPORT Diversity & Inclusion Chain and the use of Rare Minerals. Some customers value this, others merely appreciate it. At Jabil, we work to ensure every employee is heard, as this is our stepping-stone to guarantee our collective Lastly on this topic, but certainly not least, we now track voices make a positive difference. the volunteer hours put forth by our generous employees. These efforts are gratuitous and selfless. We value their Operating in roughly 100 sites around the world, time and contributions in making better the communities our broad-based team is comprised of varying and environments where they so proudly work and live ethnicities, nationalities, genders, sexual orientations their lives. and life experiences. In a word, we embody and embrace “diversity.” THE RESILIENCY OF OUR COMMERCIAL PORTFOLIO Never satisfied and always striving to improve, we reflected on our shortcomings this past year and When thinking of the current construct of our business, recognized the need to fortify our approach to diversity I’m certain that the whole is more valuable than an and inclusion. For that reason, we formed an internal elementary sum of the parts. Jabil’s intentional balance Council for Diversity and Inclusion. This Council of businesses across a wide range of end-markets, the advocates and stewards our exploration in the tough likes of: Healthcare / Consumer Packaging, Mobility / act of introspection, while actively engaging employees Connected Devices, Automotive / Transportation, Industrial across the Jabil enterprise. The talented individuals who / Energy / Semi-Cap Equipment, 5G / Wireless / Cloud make up our Council, will serve the first of what will Computing, Digital Print / Retail, Defense / Aerospace be two-year rotational appointments. The measurable and Networking / Storage allowed us to successfully goals are – expanding tolerance, reducing unconscious withstand the headwinds we faced during the year. biases, and widening our aperture of inclusion for all. We report our business results under two operating Consistent with this focus, we’re also very excited about segments: Diversified Manufacturing Services (DMS) our work with Special Olympics USA. This relationship and Electronic Manufacturing Services (EMS). is not simply a donation, but a comprehensive Across both segments we help our customers “win” by engagement of our employees around the world with offering comprehensive product solutions that meet their these amazing athletes and their coaches. needs and enhance their respective customer experiences. Our culture is about caring and cementing our ethos of Around the manufacturing and delivery of these products, “One Jabil family.” As CEO, I encourage every individual we wrap a growing number of services, leading with to be their true self and to do so without fear or anxiety, custom engineering and digital supply chain analytics. but with complete assurance of dignity and respect. We DMS – Approximately half of our DMS segment is warmly welcome the differences that make us all unique. comprised of businesses that operate in regulated- markets, such as Healthcare, Automotive and Sustainability Transportation, Defense and Aerospace. These markets often require complex compliance, validation and At Jabil, we aim to “always do what’s right” in helping regulatory processes and controls, resulting in longer to preserve the planet – not just today, but for future term and more stable product life cycles. generations to come. We see this as our responsibility as sound corporate citizens. The other half of our DMS segment is comprised of businesses in the Mobility, Connected Devices and In FY20, we launched our first Climate Action Plan, Consumer Packaging end-markets. Our teams serve committing to expand clean energy production and these businesses with their excellence in advanced reduce our greenhouse gases emissions by 25 percent material sciences, aesthetically complex molding, over the coming 5-6 years. To achieve this bold target, precision machining and custom automation. we’ll utilize renewable energy sources throughout our operations, leveraging both technology and the tailored Our DMS segment delivered FY20 revenues of $10.7 expertise of our customers who excel in this space. billion, reflecting an 8 percent increase over fiscal 2019. We’re excited about the balanced portfolio within our As you may know, the next 10 years have been declared DMS segment, with intention placed on expanding by the UNITED NATIONS as “the decade to deliver” on operating margins while offering reliable cash flows. sustainability. EMS – Jabil’s EMS segment represents our largest We, at Jabil, contribute to many of these well-defined and most assorted collection of businesses, serving a goals, while also proudly serving as a founding member wonderful blend of end-markets that include 5G and of the Responsible Business Alliance (RBA) since 2004. Cloud Computing, Energy, Industrial and Semi-cap In doing so, we effort to lead our industry to the highest Equipment, Digital Print and Retail, and Networking standards in our behaviors around: Labor, Water, Supply and Storage.