Jabil Inc.

Overview Key strengths Key risks Leading global outsourced manufacturer with significant manufacturing scale and diverse end-market exposure, as evidenced by expected revenue of more than $30 billion in fiscal year 2022. Significant customer concentration risk given top five customers represent nearly half of total revenues, and a single customer, Apple, represents 22%, though has improved in recent years through revenue diversification. Focus on higher-margin, faster-growing end markets such as healthcare, packaging, 5G, cloud, and electric transportation Highly competitive industry dynamics with large global peers and low customer switching costs. Lower adjusted leverage relative to similarly rated peers of about 1.4x expected in fiscal 2022 and 2023 and strong liquidity position provide some flexibility to pursue shareholder returns or acquisitions. Significant

...We expect Jabil Inc.'s good global market position and industry growth drivers will support a strong balance sheet while achieving its capital allocation goals. Jabil is well-positioned to deliver long-term revenue growth given its highly diversified product portfolio and capabilities in multiple end markets, which increase its revenue diversification. The company has strategically focused on fast- growing, high-margin segments such as health care, electric vehicles (EVs), 5G, cloud computing, data storage, and renewable energy, while benefiting from outsourcing industry trends. While there are emerging demand risks given geopolitical concerns and lower global economic growth that may impede capital investments, we expect long-term demand for cloud infrastructure, increasing electrification of vehicles, 5G infrastructure investments, industrial automation, and technological advances in health care will support solid revenue growth and earnings prospects over time. We forecast high-single-digit...

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