Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (November 2024)
25 slides from Booz Allen Hamilton's investor presentation, Nov 12, 2024
Slide 1: Investor Presentation November 2024
Copyright © 2023 Booz Allen Hamilton Inc. November 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
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
4 LEADING FROM THE TOP OUR PURPOSE IS TO EMPOWER PEOPLE TO CHANGE THE WORLD 35,800 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 DI VE RS IT Y M EA SU RE S2 CR ED EN TI AL S2 3
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, AGILITY AND SCALE IN A RAPIDLY CHANGING, HIGHLY COMPETITIVE AND INCREASINGLY TECHNICAL ENVIRONMEN
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-SUSTAINING TECHNICAL TALE
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. GOVERNMENT AND COMMERCIAL MARKETS + Intel + Space and Military Intelligence + National Cyber Platform + EverWatch INTELLIGENCE, 17% + Aerospace: Air Force, Space Force, NASA + Army + Joint Combatant Co
Slide 9: Strong Financial Returns
8 $675 $1,175 10.1% 11.0% FY19 FY24 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE Delivering Robust Organic Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Organic Revenue Growth(1)(2) Strong Cash Flow Generation ($ in mill
Slide 10: Capital Deployment: FY24 in Review
9 CAPITAL DEPLOYMENT: FY24 IN REVIEW OUR DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH 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 ~$692M through
Slide 11: Outperforming the Market
10 150% 108% 76% Category 1Booz Allen Russell 1000 Index S&P Software and Services Select Industry Index 101% 77% 58% 150% 116% 51% 5-year 3-year 1-year Booz Allen Core Peers OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEM
Slide 12: Strong Backlog and Contract-Level Performance
11 1.19x 1.42x 1.36x 1.18x 1.25x 1.52x FY20 FY21 FY22 FY23 FY24 Q2 FY25 STRONG BACKLOG AND CONTRACT-LEVEL PERFORMANCE DEMONSTRATES THE STRENGTH OF OUR VALUE PROPOSITION AND CORE CAPABILITIES Historical Backlog(1)(2)(3) ($ in millions) (1) As reported in our Forms 10-K for the fiscal years ended Marc
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 September 30, 2024. (2) Includes awards that were under protest as of September 30, 2024. (3) Rates disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended M
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 ENVIRONMENTAL, SOCIAL, GOVERNANCE IMPACTS SUPPORT LONG-TERM RESILIENCE(1) (1) Unless otherwise specified, data points noted on
Slide 15: Second Quarter Fiscal 2025 Financial Results; Fiscal 2025 Outlook
Copyright © 2023 Booz Allen Hamilton Inc. SECOND QUARTER FISCAL 2025 FINANCIAL RESULTS FISCAL 2025 OUTLOOK
Slide 16: Key Financial Results: Second Quarter Fiscal 2025
15 KEY FINANCIAL RESULTS SECOND 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 Slides 21 and 22. Net income margin was 12.4% and 9.1% for the three and six months ended September 30, 2024. SECO
Slide 17: Financial Outlook: Full Year Fiscal 2025 Guidance
16 FINANCIAL OUTLOOK FULL YEAR FISCAL 2025 GUIDANCE(1) OPERATING PERFORMANCE Updated FY25 Guidance Original FY25 Guidance Revenue Growth 11.0% – 13.0% 8.0% – 11.0% Adjusted EBITDA $1,300 – $1,330 million $1,260 – $1,300 million Adjusted EBITDA Margin on Revenue ~11% ~11% Adjusted Diluted EPS $6.10 –
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 September 30, Six Months Ended September 30, (In thousands, except share and per share data) 2024 2023 2024 2023 Revenue, Excluding Billable Expenses Revenue $ 3,146,386 $ 2,666,282 $ 6,088,183 $ 5,320,768 Less: Billable expenses 968,0
Slide 23: Non-GAAP Financial Information (Unaudited) Footnotes
22 NON-GAAP FINANCIAL INFORMATION (UNAUDITED) (a) Represents the reduction to our provision for claimed costs for years prior to fiscal 2025 recorded during the second quarters of fiscal 2025 and 2024, which resulted in a corresponding increase to revenue, as a result of the Defense Contract Audit A
Slide 24: Financial Results – Key Drivers
23 FINANCIAL RESULTS – KEY DRIVERS Second Quarter Fiscal 2025 – Below is a summary of the key factors driving results for the fiscal 2025 second quarter ended September 30, 2024 as compared to the prior year period: • Revenue increased 18.0% to $3.1 billion and Revenue, Excluding Billable Expenses i
Slide 25: Booz Allen Investor & Media Relations Contacts
24 • Website: investors.boozallen.com • Contact Information: ― Investor Relations Dustin Darensbourg Head of Investor Relations Investor_Relations@bah.com ― Media Jessica Klenk Director, Media Relations 703-377-4296 Klenk_Jessica@bah.com BOOZ ALLEN INVESTOR & MEDIA RELATIONS CONTACTS
Booz Allen Hamilton Holding — Investor Presentation (November 2024) on 6ix