FY21 Earnings & Investor Briefing
2021 FOURTHQUARTER EARNINGS &INVESTOR BRIEFINGSeptember 29, 2021
WELCOMEADAM BERRYSeptember 29, 2021
Our Foundation is SolidJABIL 2021OUR FY21 FINANCIAL HIGHLIGHTS:ABOUT JABIL:WE MAKE ANYTHING POSSIBLE ANDEVERYTHING BETTER FOR OVER 400OF THE WORLD’S MOST RECOGNIZABLEBRANDS. OUR AGILITY AND GLOBALSCALE ENABLE US TO RESPOND RAPIDLYAND FLEXIBLY TO CUSTOMER NEEDS. 29.3B4.2%NET REVENUECORE OP MARGIN* 5.61CORE DILUTED EPS1 640MFREE CASH FLOW1100 SITES LOCATEDSTRATEGICALLYAROUND THEWORLD260K OUREND-MARKETS:DEDICATED, BESTIN THE INDUSTRYEMPLOYEES50M SQUARE FEET OFMANUFACTURINGSPACEHEALTHCARE & PACKAGING*Core operating margin Core operating income divided by revenue1See U.S. GAAP to non-GAAP reconciliation in appendix.3
Intentional Diversified GrowthKey End-MarketsREVENUEBY END-MARKETREVENUE(In billions)11%CAGR 25.3Mobility 27.3 29.3Healthcare &Packaging 22.1 19.1Digital Print& RetailIndustrial& Semi-Cap5G Wireless& CloudConnectedDevicesNetworking& StorageFY17FY18FY19FY20FY21Automotive &Transportation4
Long-termPartnershipsMOBILITY &CONNECTEDDEVICESHEALTHCARE &PACKAGINGAUTOMOTIVE& TRANSPORTATIONDIGITAL PRINT &RETAILINDUSTRIAL &SEMI-CAP5G WIRELESS &CLOUDNETWORKING& STORAGE5
Financial PrioritiesShareholder FocusEXPANDOPERATING MARGINSINCREASEEARNINGS PER SHAREGENERATESTRONG CASH FLOWSALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY6
Financial Update FY21 Results End-Market & SupplyChain UpdateMIKE DASTOORCHIEF FINANCIAL OFFICER FY22 Outlook
Business Update Our People Our CultureMARK MONDELLOCHIEF EXECUTIVE OFFICER Factory Innovation
Forward Looking StatementForward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for the fourth quarter andfull fiscal year 2021; our guidance for future financial performance in our first quarter of fiscal year 2022 (including, net revenue, segment revenue, U.S. GAAP operatingincome, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), core diluted earnings per share (Non-GAAP), net interest expense, and core tax rate andthe components of each); our guidance for future financial performance in full fiscal year 2022 (including, gross profit margin, net capex, growth investment capex,maintenance investment capex, net revenue, core operating income, core operating margin, core diluted earnings per share (Non-GAAP), free cash flow, adjusted free cashflow, core EBITDA, core return on invested capital, and the components and drivers of each); and our outlook for secular trends, the future components of our capitalstructure and allocation, segment revenue and core operating margin and end market revenue. They also include our expectations for greenhouse gas reduction. Thestatements in this presentation are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and resultsto differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for the fourth quarter andfull fiscal year 2021 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; the scope and duration of the COVID-19outbreak and its impact on our operations, sites, customers and supply chain; managing growth effectively; our dependence on a limited number of customers; competitivechallenges affecting our customers; managing rapid declines or increases in customer demand and other related customer challenges that may occur; risks arising fromrelationships with emerging companies; changes in technology; our ability to introduce new business models or programs requiring implementation of new competencies;competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; our ability to purchasecomponents efficiently and reliance on a limited number of suppliers for critical components; risks associated with international sales and operations; our ability to achieveexpected profitability from acquisitions; risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks(including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; and intellectual property risk);financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currencyfluctuations; energy prices; and asset impairment); changes in financial accounting standards or policies; and risk of natural disaster, climate change or other global events.Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2020 and our other filings with theSecurities and Exchange Commission. We assume no obligation to update these forward-looking statements.9
2021 FOURTHQUARTEREARNINGSMIKE DASTOORSeptember 29, 2021
Financial PrioritiesShareholder FocusEXPANDOPERATING MARGINSINCREASEEARNINGS PER SHAREGENERATESTRONG CASH FLOWSALIGNED & FOCUSED ON DRIVING CONSISTENT CASH FLOWS & PROFITABILITY11
Fourth QuarterFY 2021 Highlights Revenue Year-over-year growth in Mobility, Automotiveand Healthcare Core Operating Margin* Solid operating leverageNET REVENUE 7.4BILLIONCORE OP MARGIN*4.2%CORE EARNINGS PER SHARE1 Core Earnings Per Share1 Strong year-over-year growth 1.44*Core operating margin Core operating income divided by revenue1See U.S. GAAP to non-GAAP reconciliation in appendix.12
Fourth Quarter & FY21Income HighlightsTHREE MONTHS ENDEDAUGUST 31,2021202020212020 7,409 7,300 29,285 27,266U.S. GAAP operating income 265 197 1,055 500U.S. GAAP net income 175 68 696 54U.S. GAAP diluted earnings per share 1.16 0.44 4.58 0.35Core operating income (non-GAAP)1 314 255 1,241 864Core earnings (non-GAAP)1 216 151 853 450Core diluted earnings per share (non-GAAP)1 1.44 0.98 5.61 2.90(In millions, except for per share data)Net revenue1FISCAL YEAR ENDEDAUGUST 31,See U.S. GAAP to non-GAAP reconciliation in appendix.13
Fourth Quarter FY21Segment ResultsDIVERSIFIED MANUFACTURING SERVICES (DMS) Net Revenue Increase of 9.7% Core margin* (non-GAAP) of 4.1%ELECTRONICS MANUFACTURING SERVICES (EMS) Net Revenue Decrease of 6.4% Core margin* (non-GAAP) of 4.3%TOTAL COMPANY Net Revenue Increase of 1.5% Core margin* (non-GAAP) of 4.2%* Core margin defined as core operating income divided by net revenueEMS47% 7.4BREVENUEDMS53%
Our PortfolioRevenue by End-MarketsDIVERSIFIED MANUFACTURINGELECTRONICS MANUFACTURING in billionsFY20FY21Auto & Transportation 1.7 2.2Healthcare & Packaging 4.2Connected DevicesMobilityTotal RevenueCore Operating Margin*FY20FY21Digital Print & Retail 2.3 2.3 4.5Industrial & Semi-Cap 3.5 3.4 4.0 4.55G Wireless & Cloud 5.5 5.3 3.3 4.2Networking & Storage 2.8 2.8 13.2 15.4 14.1 13.93.7%4.8%2.7%3.7% in billionsTotal RevenueCore Operating Margin*Numbers may not foot due to rounding.* Core margin defined as core operating income divided by net revenueSee U.S. GAAP to non-GAAP reconciliation in appendix.15
Net CapexFY21FY21 Net Capex( millions)Fiscal Year EndedAugust 31, 2021Acquisition of property, plant and equipmentProceeds and advances from sale of property,plant and equipmentNet CapexSee U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/( 1,159) 366( 793)16
Strong Cash Flow &Disciplined Investment( millions) 1,433 1,400 1,257 1,193 1,200 1,000 796 787 800 793 600 400 200 0FY19FY20Cash Flow from OperationsNet capex1 as a % ofnet revenue13.1%2.9%FY21Net CapEx2.7%See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
ConsistentShareholder ReturnSHARE COUNTCUMULATIVE SHAREHOLDER RETURNFY13 – FY21Share 0 100FY13FY14FY15FY16FY17FY1818
Jabil 2021A Tremendous YearCORE OP INCOME & CORE MARGIN1(In millions) 1,241 877 7683.5% 864(In millions) 640 5.614.2% 2.623.5%ADJ. FREE CASH FLOW1CORE EPS1 2.98 2.90FY19FY20 503 461 2473.2%FY18FY191FY20FY21FY18FY21FY18See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/FY19FY20FY21
Secular Trends Driving GrowthAcross Multiple End-MarketsHEALTHCARERising Costs, Aging Population,Connectivity, DigitizationPACKAGINGSustainability,Eco-friendly &Smart PackagingSEMI-CAPAccelerated Convergenceof TechnologyAUTOMOTIVEClimate Change, Fuel EfficiencyACE - Autonomous, Connected,Electric5GInfrastructure & Devices.Accelerated Connectivity,Work & Learn from HomeCLOUDAccelerated Connectivity,Digitization, Massive Data Growth,Security20
Secular TrendsHealthcareWHAT WE DO:DRIVING GROWTHEND-TO-END GLOBAL SOLUTIONSRISINGCOSTSAGINGPOPULATIONDIAGNOSTICS ATIONMEDICALDEVICESPHARMACEUTICALDELIVERY DEVICES21
Secular TrendsVehicle ElectrificationAADAS / AUTONOMOUSShort-term: emergency braking, lanedeparture, etc.Long-term: hands, eyes & brain-off drivingCCONNECTIVITYRemote diagnostics, over the air updates,V2X, V2I, V2V, self parking, etc.EELECTRIFICATIONIncreasing electrification of the powertrainfrom mild HEV’s to full HEV’s, PHEV’s and EV’s,charging infrastructureADAS CameraLiDARDriver Monitoring CamerasDomain ComputeRADARDisplay ModulesDriver InformationExternal ChargerCombiner HUD KinematicsWindshield HUD OpticsPark AssistTelematics Control UnitV2X CommunicationGateway ModuleCharging CableCharging StationBattery MonitoringInverterDCDC ConverterOn-Board ChargingSurround View Cameras22
Secular TrendsInfrastructure Spending 5G MICRO-GRID CLOUD SMART INFRASTRUCTURE SEMI-CAP POWER GENERATION EDGE COMPUTING ENERGY STORAGE23
Revenue by End-MarketsContinued Mix Shift in Targeted AreasDIVERSIFIED MANUFACTURINGELECTRONICS MANUFACTURINGFY20FY21FY22 Y/YGrowth*Auto & Transportation 1.7 2.241%Healthcare & Packaging 4.2 4.5Connected Devices 4.0Mobility in billionsTotal RevenueCore Operating Margin** Growth rates rounded.Numbers may not foot due to rounding.FY20FY21FY22 Y/YGrowth*Digital Print & Retail 2.3 2.313%11%Industrial & Semi-Cap 3.5 3.49% 4.52%5G Wireless & Cloud 5.5 5.38% 3.3 4.20%Networking & Storage 2.8 2.8(7%) 13.2 15.4 16.9Total Revenue 14.1 13.9 14.63.7%4.8%5.0%Core OperatingMargin*2.7%3.7%3.8% in billions* Core margin defined as core operating income divided by net revenue24
Continued Mix Shift in Targeted AreasDriving Margin ExpansionGross Profit MarginCore Operating Margin ** Core margin defined as core operating income divided by net revenue25
Net CapexDisciplined InvestmentFY22E Net CapexNet Capex( millions)Net Capex( millions)FY22EGrowth Investment 330Maintenance Investment 500900Replacement Factory Innovation Engineering & InnovationCompany Total 796 793 8302.7%2.6%FY21FY22E700600500 7878003.1%4002.9%3002001000 830FY19FY20Net CapexSee U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/Net CapEx % of Revenue26
Solid Liquidity ProfileConsistent Free Cash Flow GenerationDrivers of FutureFree Cash FlowAdjusted FCFCORE EBITDA( millions)( billions) 2.11. Earnings expansion 1.6 2.3 700 640 1.6 5032. Working capital efficiencies 4613. Disciplined investmentFY19FY20FY21FY22ESee U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/FY19FY20FY21FY22E27
Actively DrivingCore ROICCORE RETURN ONINVESTED CAPITALCONSISTENT RETURNS Aligning investments with highergrowth and more profitable endmarkets Disciplined approach towardsoptimal capital structure and investorreturns30%19%FY1821%20%FY19FY20FY21See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/28
Financial FlexibilitySolid Capital StructureFINANCIAL STRENGTH( in millions)3,000 Balance sheet debt of 2.9B, asof August 31, 20212,5002,000 Credit Agency Ratings/Outlook1,5002 Moody’s: Baa3 / Stable1,000 S&P: BBB- / Stable500 Fitch: BBB- / Positive2022202320242025Sr. Note & Private evolver capacityFully committed to maintaininginvestment grade profileNote: Years reflect calendar year. All other slides reflect fiscal years (September to August).1 Undrawn capacity as of August 31, 2021.2 A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time. Each credit rating should be evaluated independently of any other credit rating.29
Balanced and ThoughtfulCapital Allocation FrameworkCash flow from operationsNet Capex 55% Continued reinvestment to expandcapabilities and support customerrelationshipsFree Cash FlowDebt Optimization& M&A 20% Prioritize share repurchases & dividendsShare Repurchases& Dividends 80%VALUE CREATION FOR JABIL SHAREHOLDERS Disciplined approach to M&A Continue optimize capital structure30
First Quarter FY22GuidanceSegment Revenue GuidanceQ1 FY21Q1 FY22EYoY Change Diversified Manufacturing Services 4.2B 4.7BIncrease 10% Electronics Manufacturing Services 3.6B 3.6B0%Q1 FY22EConsolidated GuidanceNet revenue 8.0B - 8.6BU.S. GAAP operating income 321M - 381MU.S. GAAP diluted earnings per share 1.41 - 1.61Core operating income (non-GAAP)1 365M - 425MNet interest expense2Core tax rate (non-GAAP)3Core diluted earnings per share (non-GAAP)1EMS 38M 25% 1.70 - 1.90See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on September 29, 2021.interest expense interest expense loss on sale of AR - interest income3 Core tax rate excludes the tax impacts related to amortization of intangibles, stock-based compensation expense and related charges.12 Net
Our OutlookThe Momentum ContinuesCORE OP INCOME & CORE OP MARGIN(In millions) 7683.5%(In millions) 1,405 1,241 877ADJ. FREE CASH FLOWCORE EPS 8644.2% 5.61 6.35 640 5034.5% 2.623.5% 2.98 2.90FY19FY20 700 461 2473.2%FY18FY19FY204.5%FY21FY22EFY18CORE OPERATING MARGINFY21FY22E 6.35CORE EPSSee U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/FY18FY19FY20FY21 700FY22EADJ. FREE CASH FLOW
Our FY22 OutlookDeliver a Credible Financial PlanNET REVENUE 31.5CORE OP MARGINCORE EPSFREE CASH FLOW4.5% 6.35 700MILLIONBILLIONMANAGEMENT’S OUTLOOK FOR FY22See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
We have a VisionTo be the most Technologically Advanced and Trusted manufacturing solutions provider.MARK MONDELLOSeptember 29, 202134
OUR PEOPLEA Team which promotes an Inclusive EnvironmentThank you for being your True Self
JabilConstruct and PedigreeOUR SOLUTIONSOUR APPROACHOUR OUTLOOKOUR PORTFOLIO36
Our ApproachA more Diverse, Equitable & Inclusive JabilWe’re ListeningWe’re LearningDei EnterpriseStrategyWe’re sesDiverse TalentDevelopment
Our ApproachA more Sustainable JabilEnvironmental ActionNew strategy and our 3 sustainability pillars50%OUR PEOPLE &COMMUNITIESOUR OPERATIONS& RESOURCESAllOUR INNOVATIVESOLUTIONSEmployee well-beingHealth & Safety remains a core valueEmployee well-being includes feeling welcomed,valued, and respected.Community service, human rights, and diversity, equity, andinclusion.3Factories strive formaximum landfill diversionGreenhouse Gas reductionby 2030Factories to have a planfor conserving waterUnited NationsSustainable Development– alignmentDECENT WORK8& ECONOMICGROWTHSeek more QUALITY10REDUCEDINEQUALITIES16PEACE, JUSTICEAND STRONGINSTITUTIONS6CLEAN WATER& SANITATION11SUSTAINABLECITIES ANDCOMMUNITIES17PARTNERSHIPSFOR THEGOALSAFFORDABLE& CLEANENERGY12RESPONSIBLECONSUMPTION& PRODUCTION7
Our SolutionsEnabled by Structure, Investments, TIONAT OUR VERY CORE WE ‘BUILD STUFF’OBSESSION
Our PortfolioCritical and Trusted PartnerMobilityDigital Print & RetailIndustrial & Semi-CapHealthcare & Packaging5G Wireless & CloudConnected DevicesAutomotive & TransportationNetworking &Storage
Our PortfolioIntentionally Diversified and Evermore ResilientDIVERSIFIED MANUFACTURINGELECTRONICS MANUFACTURINGFY20FY21FY22Auto & Transportation 1.7 2.2 3.1Healthcare & Packaging 4.2 4.5Connected Devices 4.0Mobility in billionsTotal RevenueCore Operating Margin*FY20FY21FY22Digital Print & Retail 2.3 2.3 2.6 5.0Industrial & Semi-Cap 3.5 3.4 3.7 4.5 4.65G Wireless & Cloud 5.5 5.3 5.7 3.3 4.2 4.2Networking & Storage 2.8 2.8 2.6 13.2 15.4 16.9 14.1 13.9 14.63.7%4.8%5.0%2.7%3.7%3.8% in billionsTotal RevenueCore Operating Margin*Numbers may not foot due to rounding.* Core margin defined as core operating income divided by net revenue41
Our OutlookCredible FY22 Financial PlanNET REVENUE 31.5CORE OP MARGINCORE EPSFREE CASH FLOW4.5% 6.35 700MILLIONBILLIONMANAGEMENT’S OUTLOOK FOR FY22See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
Our OutlookWhat we’re doing is WorkingREVENUECORE OP INCOMECORE EPS10%CAGR15%CAGR25%CAGR(In billions) 22.1FY18 25.3 27.3(In millions) 29.3 31.5 1,241 768FY19FY20FY21FY22EFY18 877 864FY19FY20FY21 1,405 5.61FY22ESee U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/ 2.62 2.98 2.90FY18FY19FY20FY21 6.35FY22E
OUR PURPOSEEnables our path forward, as we care for each other, treat one another withcomplete respect, give back to those in need and respect the environment.44
Our Path ForwardTrust and Belief in our Team A well Diversified Portfolio with solid exposure to Secular Trends Proven ability to Execute fueled by operational investments Innovative solutions put forth as we obsess about our Customers Unique combination of Approach, Structure, Scale and Experience The commitment and continuation of Capital returns to Shareholders
OUR PEOPLEA Team which promotes an Inclusive EnvironmentThank you for being your True Self
Our PathGrounded by a Straight-forward Strategy Jabil has undergone deep and sustainable improvements The business is extremely well-diversified Demand for innovative global manufacturing partners with robust supply chain capabilities hasnever been stronger Jabil is well-positioned to benefit from long-term secular trends Management is focused on achieving industry-leading Core Margins and Adjusted Free CashFlow, at scale Well-balanced and disciplined capital allocation framework47
MARK MONDELLOCHIEF EXECUTIVE OFFICERMIKE DASTOORCHIEF FINANCIAL OFFICERADAM BERRYVP, INVESTOR RELATIONS
APPENDIXGAAP to Non-GAAPReconciliations49
JABIL INC. AND SUBSIDIARIESOPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION(In millions, except for per share data)(Unaudited)Operating income (U.S. GAAP)Amortization of intangiblesStock-based compensation expense and related chargesRestructuring, severance and related chargesDistressed customer chargeNet periodic benefit costBusiness interruption and impairment charges, netAcquisition and integration chargesAdjustments to operating incomeCore operating income (Non-GAAP) Core operating income (Non-GAAP)Depreciation expenseCore EBITDA (Non-GAAP) Net income attributable to the Company (U.S. GAAP)Adjustments to operating incomeLoss (gain) on securitiesNet periodic benefit costAdjustment for taxesCore earnings (Non-GAAP) Diluted earnings per share (U.S. GAAP)Diluted core earnings per share (Non-GAAP)Diluted weighted average shares outstanding (U.S. GAAP & Non-GAAP) (inthousands) Three months endedAugust 31, 2021August 31, 2020265 1971213262141279124958314 255314 255219181533 43617549(7)(1)2161.161.44150,124 685836(9)(2)1510.440.98154,453 Fiscal year endedAugust 31, 2021August 31, 20201,055 50047561028310157152416(1)64311863641,241 864#REF!#REF!1,241 8648287392,069 1,603696186(2)(24)(3)8534.5805.61152,051 5436449(16)(1)4500.3502.90155,27450
Secular Trends Vehicle Electrification ELECTRIFICATION Increasing electrification of the powertrain from mild HEV's to full HEV's, PHEV's and EV's, A E . Mobility 3.3 4.2 0% Networking & Storage 2.8 2.8 (7%) Total Revenue 13.2 15.4 16.9 Total Revenue 14.1 13.9 14.6 Core Operating Margin* 3.7% 4.8% 5.0% Core Operating Margin*
PSI AP Physics 1 Name_ Multiple Choice 1. Two&sound&sources&S 1∧&S p;Hz&and250&Hz.&Whenwe& esult&is:& (A) great&&&&&(C)&The&same&&&&&
Argilla Almond&David Arrivederci&ragazzi Malle&L. Artemis&Fowl ColferD. Ascoltail&mio&cuore Pitzorno&B. ASSASSINATION Sgardoli&G. Auschwitzero&il&numero&220545 AveyD. di&mare Salgari&E. Avventurain&Egitto Pederiali&G. Avventure&di&storie AA.&VV. Baby&sitter&blues Murail&Marie]Aude Bambini&di&farina FineAnna
The program, which was designed to push sales of Goodyear Aquatred tires, was targeted at sales associates and managers at 900 company-owned stores and service centers, which were divided into two equal groups of nearly identical performance. For every 12 tires they sold, one group received cash rewards and the other received
College"Physics" Student"Solutions"Manual" Chapter"6" " 50" " 728 rev s 728 rpm 1 min 60 s 2 rad 1 rev 76.2 rad s 1 rev 2 rad , π ω π " 6.2 CENTRIPETAL ACCELERATION 18." Verify&that ntrifuge&is&about 0.50&km/s,∧&Earth&in&its& orbit is&about p;linear&speed&of&a .
– Payout Ratio p: dividend/earnings DPS/EPS – Retained Earnings: (earnings - dividends) – Plowback Ratio b: retained earnings/total earnings – Book Value BV: cumulative retained earnings – Return on Book Equity ROE: earnings/BV Using these concepts, different valuation formulas may be derived
_Payout ratio: dividend/earnings DPS/EPS p _Retained earnings: (earnings - dividends) _Plowback ratio: retained earnings/total earnings b _Book value (BV): cumulative retained earnings _Return on book equity (ROE): earnings/BV 16 EPS and ROE
theJazz&Band”∧&answer& musical&questions.&Click&on&Band .
financial reporting in terms of quality of earnings, that is, the degree to which reported earnings reflect economic reality. Penman (2003) submitted that high quality earnings are the earnings that contain a good indicator for future earnings, with regard to the current performance of the company. In other words, quality of earnings currently .
