Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q4 2023 Earnings Presentation
22 slides from Science Applications International's earnings presentation, Apr 3, 2023
Slide 1: Fiscal Year 2023 Fourth Quarter Earnings Call
Science Applications International Corporation Fiscal Year 2023 Fourth Quarter Earnings Call Supplemental Financial Presentation April 3, 2023
Slide 2: Bring on Tomorrow
SAIC. BRING ON TOMORROVV, We're not just another company that solves problems. No, we're a company that never stops reaching. Never stops pushing beyond our limits. To rethink engineering in a digital world, we reached. To redefine space training through virtual reality, we reached. To redesign new
Slide 3: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “antici
Slide 4: Today's Presenters
Today’s Presenters Nazzic Keene Prabu Natarajan Chief Executive Officer Chief Financial Officer SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 4
Slide 5: SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED
SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 5
Slide 6: FY2023 Highlights & FY2024 Outlook
FY2023 Highlights & FY2024 Outlook ~2% Pro-Forma Organic Revenue Growth; Accelerating to 3% at Midpoint in FY2024 FY2023 Adjusted EBITDA* Margin of 8.8% with FY24 guidance of 9.2% to 9.4% Signed Agreement to Divest Logistics & Supply Chain Business for $350M (11.5x FCF) Targeting >$1.25B of Capital
Slide 7: FY2023 Q4 Results
(1) FY2023 Q4 Results ADJUSTED ADJUSTED REVENUE FREE CASH FLOW (2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) $1.97B $2.04 $148M $1.78B 8.7% 8.2% $1.50 $94M FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 (1) Results of Science Applications International Corporation and
Slide 8: FY2023 Results
(1) FY2023 Results ADJUSTED ADJUSTED REVENUE FREE CASH FLOW (2) EBITDA MARGIN (2)(3) DILUTED EPS (2)(4) $525M (excl. Sec. 174 related payments) $7.70B $467M $7.39B 9.3% $7.55 $457M 8.8% $7.27 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 (1) Results of Science Applications International Co
Slide 9: Divestiture of Logistics & Supply Chain Business
Divestiture of Logistics & Supply Chain Business Strategic Rationale Financial Terms • Accelerates shift of portfolio towards GTA • Transaction expected to close in H1 FY24 with higher, long-term returns • Pre-tax proceeds of $350M represents 11.5x • Consistent with focus to align portfolio and free
Slide 10: Solid Organic Revenue Growth Expected to Continue
Solid Organic Revenue Growth Expected to Continue 6% 5% 4% (4%) (2%) 3% 2% 1% 3% 3% 2% 0% FY22 FY23 FY24 SAIC Adjusted Pro-forma Organic Growth Impact from Contract Transitions FY21 FY22 FY22 FY23 FY23 FY24 + Revenues, as reported $7,056 $7,394 $7,394 $7,704 $7,704 $7,125 Acquired Revenue ($184) ($7
Slide 11: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance Impacts from Impacts from CURRENT Fiscal PRIOR Fiscal Year Fiscal Year 2024 vs. L&SCM sale, FSA, Improved Year 2024 2024 Guidance Fiscal Year 2023 and Section 174 Performance Guidance Revenue $7.6B - $7.8B Less $650M Plus $50M - $100M $7.05B - $7.20B +3%^ Adjusted EBITDA Ma
Slide 12: FY2023 to FY2024 Key Financials Walk
FY23 Adjusted FY23 Revenue 8.8% EBITDA 9 Months 9 Months of of L&SCM L&SCM 12 Months 12 Months of FSA JV Of FSA JV Organic Organic Revenue $135 Growth and Growth Higher Margins in FY2024 FY24 FY24 Adj. Revenue +3% $7,260 EBITDA 9.3% Guidance Pro-Forma Guidance Organic Growth* Impact of five fewer wo
Slide 13: Target FCF Per Share of ~$11 in FY26
Target FCF Per Share of ~$11 in FY26, Offsetting L&SCM Prior Illustrative FY23 to FY27 FCF Walk Impact of L&SCM Sale and FSA Increased Earnings / WC Increased Earnings / WC Increased Earnings / WC Higher Cash Taxes JV Deconsolidation FCF*Taxes Taxes & Interest incl. Section 174 incl. Section 174 Hig
Slide 14: SAIC Historical Share Repurchase Authorizations
SAIC Historical Share Repurchase Authorizations Incremental Repurchase Avg. Annualized Total Approximate Avg. Shares Avg. Price of Authorization Shares Added Authorization FCF** / Share “Current” Months to Repurchased Repurchased Date to as % of Diluted During Authorization Complete per Month Shares
Slide 15: SAIC Historical Backlog and Book-to-Bill
SAIC Historical Backlog and Book-to-Bill $25 2.2x 0.9x 1.2x 1.0x 1.1x 1.1x 0.7x 0.7x 2.7x 0.4x $20 Total Backlog ($ in billions) 2.6x 0.9x 1.5x $15 1.2x 1.4x 0.8x 0.9x 1.4x 1.0x 0.8x $10 $5 $0 F1Q19 F2Q19 F3Q19 F4Q19 F1Q20 F2Q20 F3Q20 F4Q20 F1Q21 F2Q21 F3Q21 F4Q21 F1Q22 F2Q22 F3Q22 F4Q22 F1Q23 F2Q23
Slide 16: Appendix
Appendix
Slide 17: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY24 64 62 63 60 249 FY23 64 62 63 65 254 FY22 64 63 63 60 250 FY21 64 63 63 60 250 FY20 64 63 63 60 250 FY19 64 63 63 60 250 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 17
Slide 18: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are pe
Slide 19: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) Adjusted diluted earnings per share is a performance measure that excludes acquisition and integration costs, impairments, restructuring costs, and any other material non-recurring costs that we do not consider to be indicative of our
Slide 20: Non-GAAP Reconciliation – Free Cash Flow
Non-GAAP Reconciliation – Free Cash Flow (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided by operating
Slide 21: Non-GAAP Reconciliation – FY24 Free Cash Flow Guidance
Non-GAAP Reconciliation – FY24 Free Cash Flow Guidance (1) “Free cash flow” is a non-GAAP financial measure that is reconciled in this schedule to the most directly comparable GAAP financial measures. This non-GAAP financial measure provides investors with greater visibility into cash flows provided
Slide 22: Bring on Tomorrow
BRING ON TOMORROVYS TAKING THE WORLD WHERE IT'S NEVER BEEN BEFORE. SAIC.
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