Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Investor Presentation (November 2018)
18 slides from Leidos's investor presentation, Nov 29, 2018
Slide 1: Leidos Investor Presentation
Leidos Investor Presentation November 29, 2018 Jim Reagan Executive Vice President, Chief Financial Officer
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "
Slide 3: Key Messages
KEY MESSAGES ► Leveraged to multiple markets & geographies Diverse & Growing ► Improving win rates across larger pipeline expected to drive growth Revenue Stream ► Countercyclical benefits from exposure to defense & civil markets ► EBITDA Growth Long-Term ► Balance Sheet Optimization Cash Flow Growt
Slide 4: Mission Vision Values
Mission Vision Values Become the global leader in the integration and application of information Leidos makes the world Integrity technology, engineering, and science safer, healthier, and to solve our customers’ most demanding more efficient through Innovation challenges. information technology, Ag
Slide 5: The Leidos Team
THE LEIDOS TEAM Bottom Row Top Row from Left to Right from Left to Right Jim Cantor George Reiter Chief Technology Officer Acting Chief Human Resource Officer Jerry Howe Vicki Schmanske General Counsel President, Intelligence Group Paul Engola Jon Scholl Chief Administrative Officer President, Healt
Slide 6: Key Messages
KEY MESSAGES ► Leveraged to multiple markets & geographies Diverse & Growing ► Improving win rates across larger pipeline expected to drive growth Revenue Stream ► Countercyclical benefits from exposure to defense & civil markets ► EBITDA Growth Long-Term ► Balance Sheet Optimization Cash Flow Growt
Slide 7: Diversified Revenues
DIVERSIFIED REVENUES Leveraged to Multiple Markets & Geographies CIVIL - $3.4B DEFENSE - $4.9B HEALTH $1.8B 16% International 3% DoD 11% 1% Commercial 7% International 71% Civil & State 20% DoD Commercial 4% Civil & State 70% Civil & State 9% Commercial 88% DoD Key Customers Key Customers Key Custom
Slide 8: Leidos Technical Core Competencies
LEIDOS TECHNICAL CORE COMPETENCIES Mission Sensors, Enterprise IT Cyber Operations Integrated Mission Software Collections, & Modernization Operations & Logistics Systems Support Systems Phenomenology SLA and mission Mission-effective Mission solutions via Advanced Cyber Transformational Disruptive
Slide 9: Defense & Civil Exposure Provides Counter-Cyclical Benefits
DEFENSE & CIVIL EXPOSURE PROVIDES COUNTER-CYCLICAL BENEFITS DI S CRE TI O NARY BUDG E T AUTHO RI TY ($ BI LLI O N) $900 LE I DO S HI S TO RI CAL RE V E NUE MI X $800 Defense Civil Health $700 13% 17% 16% $600 34% 71% $500 49% $400 F Y1 4 * * F Y1 8 YT D Civil / Defense Budgets Counter-cyclicality **
Slide 10: Increasing Backlog & Book-to-Bill
INCREASING BACKLOG & BOOK-TO-BILL 20.3 17.7 17.7 17.5 17.6 18.3 Backlog1 ($B) 16.9 17.1 4QFY16 1QFY16 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 Book to Bill2 1.4 1.8 1.2 1.0 1.0 0.9 0.7 0.7 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 (1) Backlog presented at exchange rate in effect at qu
Slide 11: Key Messages
KEY MESSAGES ► Leveraged to multiple markets & geographies Diverse & Growing ► Improving win rates across larger pipeline expected to drive growth Revenue Stream ► Countercyclical benefits from exposure to defense & civil markets ► EBITDA Growth Long-Term ► Balance Sheet Optimization Cash Flow Growt
Slide 12: Long-Term Targets
LONG-TERM TARGETS Disciplined Revenue Adjusted Strong Cash Prudent Capital Growth and EBITDA Generation Leverage Allocation Diversification Margin1 and Efficiency Strategy 3-year Revenue 10%+ Target Cash Conversion2: Leverage Ratio Balanced CAGR ~3%+ 100% Target ~3.0x deployment of excess cash (1) S
Slide 13: Key Messages
KEY MESSAGES ► Leveraged to multiple markets & geographies Diverse & Growing ► Improving win rates across larger pipeline expected to drive growth Revenue Stream ► Countercyclical benefits from exposure to defense & civil markets ► EBITDA Growth Long-Term ► Balance Sheet Optimization Cash Flow Growt
Slide 14: Disciplined Capital Deployment Philosophy
DISCIPLINED CAPITAL DEPLOYMENT PHILOSOPHY Committed to Returning Excess Cash 1 Maintain Dividend ► $0.32 regular quarterly dividend ► Organic growth: Business development, internal R&D, capex 2 Invest for Growth ► Inorganic growth: M&A 3 Reduction of Outstanding Debt ► Target leverage ratio of ~3.0x
Slide 15: Balanced Capital Deployment
Balanced Capital Deployment Year-To-Date Capital Deployment Debt Reduction, 16% Quarterly Dividend, 41% Quarterly Dividend Share Repurchase Debt Reduction Share Repurchase, 43% Note: Chart Reflects Capital Deployment to Debt Reduction, Quarterly Dividend, and Share Repurchase, through Q3’2018 report
Slide 16: Key Messages
KEY MESSAGES ► Leveraged to multiple markets & geographies Diverse & Growing ► Improving win rates across larger pipeline expected to drive growth Revenue Stream ► Countercyclical benefits from exposure to defense & civil markets ► EBITDA Growth Long-Term ► Balance Sheet Optimization Cash Flow Growt
Slide 17: Thank You
Thank You
Slide 18: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; (ii) adjustments to the income tax provision to reflect non-GAAP adjustments; and (iii) the following discrete items: Integration and restructuring co
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