Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q3 FY2021 Earnings Presentation
26 slides from Booz Allen Hamilton's earnings presentation, Feb 5, 2021
Slide 1: Fiscal Year 2021 Third Quarter Investor Presentation
FISCAL YEAR 2021 THIRD QUARTER Investor Presentation February 2021
Slide 2: Disclaimer: Forward Looking Safe Harbor Statement
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 include
Slide 3: Why Invest in Booz Allen Hamilton
WHY INVEST IN BOOZ ALLEN HAMILTON INVESTMENT THESIS U N I Q U E M A R K E T P O S I T I O N= + Investments in innovation, talent, and capabilities position us to help clients adopt current and new technologies + First mover advantage enhanced by our ability to combine mission S T R O N G F I N A N C
Slide 4: Company History
COMPANY HISTORY Advisor to Chrysler ensuring a successful recovery with support of government lending Supported GSA in overhauling its telecommunications network (largest contract to date at that time at $620MM) Spin-off of commercial consulting business; Carlyle becomes majority shareholder Acquire
Slide 5: Booz Allen's Leadership Team
BOOZ ALLEN’S LEADERSHIP TEAM OUR PURPOSE, AS A FIRM, IS TO EMPOWER PEOPLE TO CHANGE THE WORLD Horacio D. Rozanski President and CEO Lloyd W. Howell, Jr. CFO and Treasurer Nancy J. Laben Chief Legal Officer Elizabeth M. Thompson Chief People Officer Kristine Martin Anderson Civilian Services Group Le
Slide 6: An Industry Leader
AN INDUSTRY LEADER BOOZ ALLEN CONTINUES ITS 100+ YEAR HISTORY AS AN INDUSTRY LEADER We bring bold thinking and a desire to be the best in our work in consulting, analytics, digital solutions, engineering, and cyber, focused on agencies ranging from defense to health, energy, and international develo
Slide 7: Comprehensive Suite of Service Offerings
COMPREHENSIVE SUITE OF SERVICE OFFERINGS STRATEGICALLY ALIGNED WITH CUSTOMERS’ CURRENT AND FUTURE PRIORITIES Consulting Focuses on the talent and expertise needed to solve client problems and develop mission-oriented solutions. Analytics Focuses on delivering transformational solutions in the areas
Slide 8: Broad Customer Base Spanning U.S. Government, International and Commercial Clients
BROAD CUSTOMER BASE SPANNING THE U.S. GOVERNMENT, INTERNATIONAL AND COMMERCIAL CLIENTS DEFENSE (50%) GLOBAL / COMMERCIAL (3%) REVENUE BY MARKET (1) Q3’21 + Air Force + Army + Joint Combatant Commands + Navy/Marine Corps CIVIL (27%) + Homeland Security + Health & Human Services + Veterans Affairs + T
Slide 9: Vision 2020 Growth Strategy
VISION 2020 GROWTH STRATEGY CURRENTLY IN ITS SEVENTH YEAR OF IMPLEMENTATION, WE’RE IN THE “PAYOFF PERIOD” KEY ELEMENTS OF VISION 2020IMPACT ON PERFORMANCE – “PAYOFF” + Moving closer to the center of our clients’ core mission + Increasing the technical content of our work + Attracting and retaining s
Slide 10: Vision 2020 Results
VISION 2020 RESULTS BOOZ ALLEN ANTICIPATES OUR STRONG FINANCIAL PERFORMANCE WILL CONTINUE NET INCOME (IN MILLIONS) GROWTH… $419 $483 $294 $261 $302 FY16 (1) FY17FY18FY19FY20 …. DRIVES STRONG DILUTED EARNINGS PER SHARE $2.91 $3.41 $1.94 $1.72 $2.03 FY16 (1) FY17FY18FY19FY20 2016 Net Income benefited
Slide 11: Strong Earnings Growth Derivative of Above-Market Organic Revenue Growth
STRONG EARNINGS GROWTH DERIVATIVE OF ROBUST, ABOVE-MARKET ORGANIC REVENUE GROWTH ACCELERATING ADJUSTED EBITDA (IN MILLIONS), ADEPS GROWTH $4.00 $3.50 $3.00 $2.50 $506 $569$584 $1.99 $675 $2.76 $754 $3.18 $800 $700 $600 $500 $2.00 $1.50 $1.65$1.80 FY16FY17FY18FY19FY20 $400 Adj. EBITDAADEPS ORGANIC RE
Slide 12: Historical Backlog & Book-to-Bill
HISTORICAL BACKLOG & BOOK-TO-BILL $22.0 $20.5 (4) $22.9 (4) $22.0 (4) $23.0 (4) (2) (3) (3)(3)(3)(3)(3)(3) (3) (3) (3)(3) BOOK-TO-BILL TRENDS (2) (3) (3) (3) (3)(3)(3)(3)(3)(3)(3) (3) For more information on the components of backlog, and the differences between backlog and remaining performance obl
Slide 13: Delivering Shareholder Value
DELIVERING SHAREHOLDER VALUE BOOZ ALLEN HAS ESTABLISHED A TRACK RECORD OF DEPLOYING CAPITAL $B $1,400 $1,200 $1,000 $800 $600 $400 CAPITAL DEPLOYED AND TSR PERFORMANCE SINCE IPO : 1,108%(1) 1,100% 900% 700% 500% 300% $200 100% $0 FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020 Quarterly
Slide 14: Quarterly Dividend
QUARTERLY DIVIDEND BOOZ ALLEN HAS AND WILL CONTINUE TO MAKE OUR QUARTERLY DIVIDEND A FOCUS OF OUR INVESTMENT THESIS BOOZ ALLEN QUARTERLY DIVIDENDHISTORICAL QUARTERLY DIVIDEND GROWTH RATE(1)(2) +In FY19 we increased our quarterly dividend $0.04 per share (vs. prior increases of $0.02 per share) due t
Slide 15: Quarterly Performance: Q3 FY21
QUARTERLY PERFORMANCE: Q3 FY21
Slide 16: Key Financial Results: Third Quarter Fiscal Year 2021
KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2021 RESULTS Comparisons are to prior fiscal year period 16
Slide 17: Q3 FY'21 Performance Aligned with Investment Thesis
Q3 FY'21 PERFORMANCE ALIGNED WITH INVESTMENT THESIS INVESTMENT THESIS Unique Market Position= Investments in innovation, talent, and capabilities position us to help clients adopt current and new technologies First mover advantage enhanced by our ability to combine mission Strong Financial Returns F
Slide 18: Capital Allocation
CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY Our multi-year capital deployment plan is to follow a disciplined and opportunistic approach, subject to market conditions Deployed $142 million during the third quarter through dividends, share repurc
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Financial Information
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 indic
Slide 21: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION Three Months Ended December 31, Nine Months Ended December 31, Fiscal 2020 debt refinancing costs incurred in connection with the refinancing (In thousands, except share and per share data)2020201920202019 (Unaudited)(Unaudited) Revenue, Excluding Billable Expenses Rev
Slide 22: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION a The use and definition of Non-GAAP financial measurements can be found in the company's public filings. b Reflects the combination of Interest expense and Other income (expense), net from the consolidated statement of operations. c Reflects amortization of intangible
Slide 23: Financial Results – Key Drivers: Third Quarter Fiscal 2021
FINANCIAL RESULTS – KEY DRIVERS Third Quarter Fiscal 2021 – Below is a summary of the key factors driving results for the fiscal 2021 third quarter ended December 31, 2020 as compared to the prior year period: Revenue increased by 3.0% to $1.9 billion and Revenue, Excluding Billable Expenses increas
Slide 24: Financial Results – Key Drivers: Nine Months Ended December 31, 2020
FINANCIAL RESULTS – KEY DRIVERS Nine Months Ended December 31, 2020 – Below is a summary of the key factors driving results for the fiscal 2021 nine months ended December 31, 2020 as compared to the prior year period: Net cash provided by operating activities was $799.0 million for the nine months e
Slide 25: COVID Update
COVID UPDATE In response to the COVID-19 pandemic, Booz Allen implemented a response based on three guiding priorities: To protect the health and safety of our people, their families, and communities To continue supporting the critical missions of our clients To ensure the financial and institutiona
Slide 26: Shareholder and Stock Information
SHAREHOLDER AND STOCK INFORMATION Website: investors.boozallen.com Contact Information: Investor Relations Rubun Dey Investor Relations 703-377-5332 Dey_Rubun@bah.com Media Jessica Klenk Media Relations 703-377-4296 Klenk_Jessica@bah.com Corporate Governance Nancy Laben Chief Legal Officer 703-377-9
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