Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (August 2024)
24 slides from Booz Allen Hamilton's investor presentation, Aug 13, 2024
Slide 1: Investor Presentation August 2024
Copyright © 2023 Booz Allen Hamilton Inc. August 2024 INVESTOR PRESENTATION
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
1 DISCLAIMER Forward Looking Safe Harbor Statement Certain statements contained in this presentation and in related comments by our management include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements inclu
Slide 3: Company History: Our Heritage Is at the Core of Everything We Do
2 COMPANY HISTORY OUR HERITAGE IS AT THE CORE OF EVERYTHING WE DO 20171966 1914 Booz Allen founded in 1914 by Edwin Booz in Chicago With 110 years of industry leadership, Booz Allen is one of the most respected names in government contracting Hired to help U.S. Navy prepare for WWII Spun off commerc
Slide 4: Why Invest in Booz Allen
3 WHY INVEST IN BOOZ ALLEN BOOZ ALLEN HAS A 110-YEAR HISTORY AS AN INDUSTRY LEADER History of Driving Industry Leading Organic Growth Strategic organic revenue growth and earnings growth Growing backlog, supported by a robust pipeline and sustained win rates Strong Balance Sheet Driven by Robust Cas
Slide 5: Leading From the Top: Our Purpose Is to Empower People to Change the World
4 LEADING FROM THE TOP OUR PURPOSE IS TO EMPOWER PEOPLE TO CHANGE THE WORLD 35,100 employees1 ~1,100 LOCATIONS IN 20+ COUNTRIES 28% are Veterans 65% hold security clearances 87% hold bachelor’s degrees 40% hold master’s degrees 4% hold doctoral degrees D IV ER SI TY M EA SU R ES 2 C R ED EN T IA LS
Slide 6: VoLT: Our Growth Strategy
5 • Doubling-down on innovation • Using strategic M&A and partnerships to build market positions • Making decisions closer to the needs of clients VOLT: OUR GROWTH STRATEGY OPERATE WITH INCREASED SPEED, AGIL ITY AN D SCALE IN A RAPIDLY CHA NGING, HIGHLY COMPETITIVE AND INCREASINGLY TECHNICAL ENVIRON
Slide 7: Technical Experience Groups (TXGs)
6 ARTIFICIAL INTELLIGENCE CYBER DATA SCIENCE & DATA ENGINEERING EXPERIENCE & IMMERSIVE PLATFORM & INFRASTRUCTURE SOFTWARE ENGINEERING SYSTEMS & DIGITAL ENGINEERING TECH STRATEGY & PRODUCT MANAGEMENT TECHNICAL EXPERIENCE GROUPS (TXGS) A MULTI-YEAR JOURNEY TO BUILD RICH, SELF-SUSTAININ G TECHNICAL TAL
Slide 8: Broad Client Base
7 Broad Customer Base(1) BROAD CLIENT BASE WE SERVE A BROAD CLIENT BASE THAT SPANS ACROSS THE U.S. GOVERNME NT AND COMMERCIAL MARKETS + Intel + Space and Military Intelligence + National Cyber Platform + EverWatch INTELLIGENCE, 17% + Aerospace: Air Force, Space Force, NASA + Army + Joint Combatant C
Slide 9: Strong Financial Returns
8 $675 $1,175 10.1% 11.0% FY19 FY24 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINAN CIAL PERFORMANCE Delivering Robust Organic Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Organic Revenue Growth(1)(2) Strong Cash Flow Generation ($ in mil
Slide 10: Capital Deployment: FY24 in Review
9 CAPITAL DEPLOYMENT: FY24 IN REVIEW OUR DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC AP PROACH THAT MAXIMIZES NEAR- AND LONG- TERM SHAREHOLDER VALUE We remain committed to a balanced capital allocation strategy to maximize long-term shareholder value In FY24, we deployed ~$692M through
Slide 11: Outperforming the Market: Total Shareholder Returns
10 177% 99% 69% Category 1Booz Allen Russell 1000 Index S&P Software and Services Select Industry Index 104% 53% 32% 177% 94% 63% 5-year 3-year 1-year Booz Allen Core Peers OUTPERFORMING THE MARKET DRIVIN G LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEME
Slide 12: Strong Backlog and Contract-Level Performance
11 1.19x 1.42x 1.36x 1.18x 1.25x FY20 FY21 FY22 FY23 FY24 STRONG BACKLOG AND CONTRACT-LEVEL PERFORMANCE DEMON STRATES THE STRENGTH OF OUR VALUE PROPOSITION AND CORE CAPA BILITIES Historical Backlog(1)(2)(3) ($ in millions) (1) As reported in our Forms 10-K for the fiscal years ended March 31, 2020,
Slide 13: FY25 Pipeline and Demand Dynamics
12 FY25 PIPELINE AND DEMAND DYNAMICS EXPANDING PIPELINE FUELS GROWTH MOMENTUM (1) Qualified pipeline and backlog as of June 30, 2024. Does not include the Dept. of Veterans Affairs PTEMS contract, which the Company learned has not been awarded to Booz Allen (and the Company is evaluating its options
Slide 14: ESG Highlights at a Glance
13 LEADERSHIP DIVERSITY(2) 64% (7 of 11) of our Board of Directors is gender and/or racially diverse, and 37% of our senior leadership is female. ESG HIGHLIGHTS AT A GLANCE ENVIRON MENTAL, SOCIAL, GOVERNAN CE IMPACTS SUPPORT LONG-TERM RESILIENCE(1) (1) Unless otherwise specified, data points noted o
Slide 15: First Quarter Fiscal 2025 Financial Results; Fiscal 2025 Outlook
Copyright © 2023 Booz Allen Hamilton Inc. FIRST QUARTER FISCAL 2025 FINANCIAL RESULTS FISCAL 2025 OUTLOOK
Slide 16: Key Financial Results: First Quarter Fiscal 2025
15 KEY FINANCIAL RESULTS FIRST QUARTER FISCAL 2025 RESULTS (1) *NM = not meaningful. (1) Comparisons are to prior fiscal year period. Reconciliations of non-GAAP metrics can be found on Slide 21. Net income margin was 5.6% for the three months ended June 30, 2024. FIRST QUARTER Revenue $2.9 billion
Slide 17: Financial Outlook: Full Year Fiscal 2025 Guidance
16 FINANCIAL OUTLOOK FULL YEAR FISCAL 2025 GUIDANCE (1) OPERATING PERFORMANCE Fiscal Year 2025 Revenue Growth 8.0% – 11.0% Adjusted EBITDA $1,260 – $1,300 million Adjusted EBITDA Margin on Revenue ~11% Adjusted Diluted EPS $5.80 – $6.05 Net Cash Provided by Operating Activities $825 – $925 million F
Slide 18: Investment Thesis
Copyright © 2023 Booz Allen Hamilton Inc. FY2023 – FY2025 INVESTMENT THESIS
Slide 19: Investment Thesis: Exceptional Shareholder Value Creation
18 INVESTMENT THESIS EXCEPTIONAL SHAREHOLDER VALUE CREATION FY2023–FY2025 GOALS Competitive Edge at the Mission- Innovation Intersection ADJUSTED EBITDA GROWTH TO $1.2–1.3B Disciplined Capital Deployment $2.0–3.5B Organic Revenue 5–8% Strategic Acquisitions & Investments Strong Mid 10% Adjusted EBIT
Slide 20: Appendix
Copyright © 2023 Booz Allen Hamilton Inc. APPENDIX
Slide 21: Non-GAAP Financial Information
20 NON-GAAP FINANCIAL INFORMATION • “Revenue, Excluding Billable Expenses” represents revenue less billable expenses. Booz Allen uses Revenue, Excluding Billable Expenses because it provides management useful information about the Company’s operating performance by excluding the impact of costs that
Slide 22: Non-GAAP Financial Information (Unaudited)
21 NON-GAAP FINANCIAL INFORMATION (UNAUDITED) Three Months Ended June 30, (In thousands, except share and per share data) 2024 2023 Revenue, Excluding Billable Expenses Revenue $ 2,941,797 $ 2,654,486 Less: Billable expenses 944,981 812,304 Revenue, Excluding Billable Expenses $ 1,996,816 $ 1,842,18
Slide 23: Financial Results – Key Drivers
22 FINANCIAL RESULTS – KEY DRIVERS First Quarter Fiscal 2025 – Below is a summary of the key factors driving results for the fiscal 2025 first quarter ended June 30, 2024 as compared to the prior year period: • Revenue increased 10.8% to $2.9 billion and Revenue, Excluding Billable Expenses increase
Slide 24: Booz Allen Investor & Media Relations Contacts
23 • Website: investors.boozallen.com • Contact Information: ― Investor Relations Lindsay Joyce Vice President, Financial Planning & Analysis and Investor Relations Investor_Relations@bah.com ― Media Jessica Klenk Director, Media Relations 703-377-4296 Klenk_Jessica@bah.com BOOZ ALLEN INVESTOR & MED
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