Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (November 2022)
26 slides from Booz Allen Hamilton's investor presentation, Nov 28, 2022
Slide 1: November 2022 Investor Presentation Deck
November 2022 Investor Presentation Deck
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
2 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
3 20171966 COMPANY HISTORY OUR HERITAGE IS AT THE CORE OF EVERYTHING WE DO 1914 Booz Allen founded in 1914 by Edwin Booz in Chicago With over 100 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 co
Slide 4: Why Invest in Booz Allen
WHY INVEST IN BOOZ ALLEN BOOZ ALLEN HAS A 100+ YEAR HISTORY AS AN INDUSTRY LEADER 4 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 Ca
Slide 5: Leading From the Top
5 LEADING FROM THE TOP OUR PURPOSE, AS A FIRM, IS TO EMPOWER PEOPLE TO CHANGE THE WORLD ~30,000 employees1 ~1,000 LOCATIONS IN 25 COUNTRIES (1) As reported in Booz Allen’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022. (2) As reported in Booz Allen’s Annual Report on
Slide 6: VoLT: Our Growth Strategy
VoLT: OUR GROWTH STRATEGY WE WILL OPERATE WITH INCREASED SPEED, AGILITY AND SCALE IN A RAPIDLY CHANGING, HIGHLY COMPETITIVE AND INCREASINGLY TECHNICAL ENVIRONMENT 6 BUILDING BLOCKS OF VoLT ACHIEVED BY • Doubling-down on innovation • Using strategic M&A and partnerships to build market positions • Ma
Slide 7: Advanced Solutions & Capabilities
ADVANCED SOLUTIONS & CAPABILITIES WE HAVE EXPANDED BEYOND OUR MANAGEMENT CONSULTING FOUNDATION TO DEVELOP DEEP EXPERTISE IN FIELDS THAT ADDRESS OUR CLIENTS’ CORE MISSIONS 7 P R O V E N M I S S I O N S O L U T I O N S ( 1 ) ANALYTICS D I G I TA L S O L U T I O N S E N G I N E E R I N G C Y B E R C O
Slide 8: Broad Customer Base
BROAD CUSTOMER BASE WE SERVE A BROAD CUSTOMER BASE THAT SPANS ACROSS THE U.S. GOVERNMENT AND COMMERCIAL MARKETS 8 + Commercial: Financial Services, Health and Life Sciences, Energy, and Technology + International GLOBAL COMMERCIAL, 3% + U.S. Intelligence Agencies: National Security Agency, National
Slide 9: Strong Financial Returns
9 $569 $935 9.8% 11.2% FY17 FY22 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE $5.8 $8.0 FY17 FY22 6.7% CAGR Returning to Industry-Leading Organic Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Organic Revenue Growth(1)(2)
Slide 10: Capital Deployment: FY22 in Review
CAPITAL DEPLOYMENT: FY22 IN REVIEW OUR DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH THAT MAXIMIZES NEAR- AND LONG-TERM SHAREHOLDER VALUE 10 $B Quarterly Dividends Sustained strong annual dividend growth since 2013 Strategic Acquisitions(2) Strategic investments to fuel growth S
Slide 11: Outperforming the Market
11 OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEMENT 66% 26% 4% 170% 59% 11% 5-year 3-year 1-year Booz Allen Defense Services Total Shareholder Returns vs. Core Peers One-, Three- and Five-Year Periods(1) 170% 108% 158% B
Slide 12: Strong Backlog and Contract-Level Performance
12 STRONG BACKLOG AND CONTRACT-LEVEL PERFORMANCE DEMONSTRATES THE STRENGTH OF OUR VALUE PROPOSITION AND CORE CAPABILITIES 2,685 3,436 3,415 3,510 3,710 4,161 3,687 4,518 6,086 9,925 9,174 12,198 12,796 14,436 15,612 FY18 FY19 FY20 FY21 FY22 Funded Unfunded Priced Options 16,020 19,321 20,729 24,032
Slide 13: ESG highlights
13 Reduced our total greenhouse gas emissions by 65% compared to FY20 emissions3 Maintained a 99% completion rate of firmwide mandatory annual Ethics & Compliance training Facilitated a 13% increase in employee charitable giving ($) through a series of firmwide giving campaigns and our Booz Allen Ca
Slide 14: Second Quarter Fiscal 2023 Financial Results & Fiscal 2023 Outlook
SECOND QUARTER FISCAL 2023 FINANCIAL RESULTS & FISCAL 2023 OUTLOOK
Slide 15: Key Financial Results: Second Quarter Fiscal Year 2023
15 KEY FINANCIAL RESULTS SECOND QUARTER FISCAL YEAR 2023 RESULTS (1) Comparisons are to prior fiscal year period. SECOND QUARTER (1) FIRST HALF (1) Revenue $2.3 billion +9.2% $4.5 billion +11.1% Revenue, Excluding Billable Expenses $1.6 billion +10.1% $3.2 billion +10.0% Adjusted EBITDA $286 million
Slide 16: Financial Outlook: Raising Full Year Fiscal 2023 Guidance
16 FINANCIAL OUTLOOK RAISING FULL YEAR FISCAL 2023 GUIDANCE OPERATING PERFORMANCE Updated FY23 Guidance Original FY23 Guidance Total Revenue Growth1 8.0 – 10.0% 5.0 – 9.0% Adjusted EBITDA $975 – $1,015 million $950 – $1,000 million Adjusted EBITDA Margin on Revenue High 10%-to-Low 11% Mid-to-High 10
Slide 17: Fiscal Year 2023 Operating Cash Bridge
17 FISCAL YEAR 2023 OPERATING CASH BRIDGE (1) Totals may not sum due to rounding. (2) Adding back fiscal year 2022 cash tax payments to show an equal comparison to fiscal year 2023 Operating Cash Flow before cash tax payments. (3) Reflects the expected impact of the midpoints of fiscal 2023 Adjusted
Slide 18: Fiscal Year 2023 ADEPS Bridge
18 FISCAL YEAR 2023 ADEPS BRIDGE ADEPS BRIDGE FROM FY22 TO FY23 Updated Guidance1 Original Guidance1 FY22 ADEPS $4.21 $4.21 Revenue Growth ~$0.43 – $0.53 ~$0.28 – $0.48 Adjusted EBITDA Margin ~$(0.19) – $(0.05) ~$(0.20) – $(0.10) FY23 Operational ADEPS $4.45 – $4.70 $4.29 – $4.59 Depreciation and Am
Slide 19: FY2023 − FY2025 Investment Thesis
FY2023 − FY2025 INVESTMENT THESIS
Slide 20: Investment Thesis
INVESTMENT THESIS EXCEPTIONAL SHAREHOLDER VALUE CREAT Y2023—FY ADJUSTED EBITDA. siscintine GROWTH TO $1.2—1.3B "anita Deployment Organic Strategic Strong Mid 10% $3.5—4.5B Revenue @ Acquisitions & ¢ Adjusted EBITDA - 5-8% Investments Margin :
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Financial Information
22 NON-GAAP FINANCIAL INFORMATION • "Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expenses because it provides management useful information about the Company's operating performance by excluding the impact of costs that are not
Slide 23: Non-GAAP Financial Information (Unaudited)
23 NON-GAAP FINANCIAL INFORMATION (Unaudited) 23 Three Months Ended September 30, Six Months Ended September 30, (In thousands, except share and per share data) 2022 2021 2022 2021 Revenue, Excluding Billable Expenses Revenue $ 2,298,976 $ 2,106,038 $ 4,548,576 $ 4,095,104 Less: Billable expenses 68
Slide 24: Non-GAAP Financial Information (Unaudited)
24 NON-GAAP FINANCIAL INFORMATION (Unaudited) (a) Represents costs associated with the acquisition efforts of the Company related to transactions for which the Company has entered into a letter of intent to acquire a controlling financial interest in the target entity, as well as the divestiture cos
Slide 25: Financial Results – Key Drivers
25 FINANCIAL RESULTS – KEY DRIVERS Second Quarter Fiscal 2023 – Below is a summary of the key factors driving results for the fiscal 2023 second quarter ended September 30, 2022 as compared to the prior year period: • Revenue increased 9.2% to $2.3 billion and Revenue, Excluding Billable Expenses in
Slide 26: Booz Allen Investor & Media Relations Contacts
BOOZ ALLEN INVESTOR & MEDIA RELATIONS CONTACTS 26 • Website: investors.boozallen.com • Contact Information: - Investor Relations Nathan P Rutledge Director & Head of Investor Relations 202-440-3943 Rutledge_Nathan@BAH.com - Media Jessica Klenk Director, Media Relations 703-377-4296 Klenk_Jessica@bah
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