Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q1 FY2021 Earnings Presentation
25 slides from Booz Allen Hamilton's earnings presentation, Aug 5, 2020
Slide 1: Investor Presentation Fiscal Year 2021 First Quarter
Investor Presentation AUGUST 2020 FISCAL YEAR 2021 FIRST QUARTER
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 i
Slide 3: Why Invest in Booz Allen Hamilton
3 WHY INVEST IN BOOZ ALLEN HAMILTON INVESTMENT THESIS UNIQUE MARKET POSITION 70 – 80 % ADEPS GROWTH BY FY21 + ~2% Dividend Yield 6 - 10 % ~10% ~$1.4B Annual Revenue Growth Adj. EBITDA Margins Capital Deployment = + + Investments in innovation, talent, and capabilities position us to help clients ado
Slide 4: Company History
COMPANY HISTORY With over 75 years of industry leadership, Booz Allen is one of the most respected names in government contracting 1914 1940 1949 1987 1992 1996 2001 2008 2010 2012 2013 2014 2015 2016 Founded by Edwin Booz in Chicago Received NASA space station contract (first contract over $100MM)
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 5 Our employees work at 500+ LOCATIONS IN 25+ COUNTRIES ~27,400 Number of employees (1) ~29% (2) are Veterans ~66% (2) of staff with security clearances ~86% (2) hold bachelor’s degrees ~40% (2) hold master
Slide 6: An Industry Leader
AN INDUSTRY LEADER BOOZ ALLEN CONTINUES ITS 100+ YEAR HISTORY AS AN INDUSTRY LEADER 6 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 deve
Slide 7: Comprehensive Suite of Service Offerings
Focuses on delivering transformational solutions in the areas of decision analytics, automation, and data science, as well as new or emerging areas. Combines the power of modern systems development techniques and cloud platforms with machine learning to transform customer and mission experiences. De
Slide 8: Broad Customer Base Spanning U.S. Government, International and Commercial
BROAD CUSTOMER BASE SPANNING THE U.S. GOVERNMENT, INTERNATIONAL AND COMMERCIAL CLIENTS 8 + Commercial: Aerospace, Financial Services, Health and Life Sciences, Energy, Transportation + International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (3%) + U.S. Intellige
Slide 9: Vision 2020 Growth Strategy
VISION 2020 GROWTH STRATEGY CURRENTLY IN ITS SEVENTH YEAR OF IMPLEMENTATION, WE’RE IN THE “PAYOFF PERIOD” 9 KEY ELEMENTS OF VISION 2020 IMPACT ON PERFORMANCE – “PAYOFF” + Moving closer to the center of our clients’ core mission + Increasing the technical content of our work + Attracting and retainin
Slide 10: Vision 2020 Results
VISION 2020 RESULTS BOOZ ALLEN ANTICIPATES OUR STRONG FINANCIAL PERFORMANCE WILL CONTINUE 10 (1) 2016 Net Income benefited from one time release of pre - acquisition income tax reserves assumed by the Company in connection with the acquisition of our Company by The Carlyle Group (1) (1) NET INCOME (
Slide 11: Strong Earnings Growth
STRONG EARNINGS GROWTH DERIVATIVE OF ROBUST, ABOVE - MARKET ORGANIC REVENUE GROWTH 11 $506 $569 $584 $675 $754 $1.65 $1.80 $1.99 $2.76 $3.18 $450 $520 $590 $660 $730 $800 FY16 FY17 FY18 FY19 FY20 $1.50 $1.88 $2.25 $2.63 $3.00 $3.38 $3.75 Adj. EBITDA ADEPS 2.5% 7.1% 5.2% 8.7% 11.3% (3.5%) (1.3%) 0.5%
Slide 12: Historical Backlog & Book-to-Bill
12 HISTORICAL BACKLOG & BOOK - TO - BILL BACKLOG (1) BOOK - TO - BILL TRENDS (1) For more information on the components of backlog, and the differences between backlog and remaining performance obligations, please see the Company's Form 10 - K for the fiscal year ended 3/31/20 (2) Revenue as adjuste
Slide 13: Delivering Shareholder Value
$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Quarterly Div. Special Div. Share Repo M&A DELIVERING SHAREHOLDER VALUE BOOZ ALLEN HAS ESTABLISHED A TRACK RECORD OF DEPLOYING CAPITAL 13 1) TSR as of 6/30/2020 and assum
Slide 14: Quarterly Dividend
QUARTERLY DIVIDEND BOOZ ALLEN HAS AND WILL CONTINUE TO MAKE OUR QUARTERLY DIVIDEND A FOCUS OF OUR INVESTMENT THESIS 14 Quarterly dividend initiated in 2012 + In FY’19 we increased our quarterly dividend $0.04 per share (vs. prior increases of $0.02 per share) due to: – The fundamental strength in ou
Slide 15: Quarterly Performance: Q1 FY21
QUARTERLY PERFORMANCE: Q1 FY21
Slide 16: Key Financial Results First Quarter Fiscal Year 2021
16 KEY FINANCIAL RESULTS FIRST QUARTER FISCAL YEAR 2021 RESULTS 1) Comparisons are to prior fiscal year periods FIRST QUARTER (1) Revenue $2.0 billion 7.2% Increase Revenue, Excluding Billable Expenses $1.4 billion 10.5% Increase Adjusted EBITDA $213 million 7.0% Increase Adjusted EBITDA Margin on R
Slide 17: Q1 FY21 Performance: Aligned with Investment Thesis
Q1 FY'2 1 PERFORMANCE: ALIGNED WITH INVESTMENT THESIS – Organic growth in revenue of 7.2% year - over - year driven by strong client demand – Headcount and backlog year - over - year growth of 3.8% and 15.9%, respectively, to support future growth – Adj. EBITDA Margin on Revenue of 10.9%; Adj. EBITD
Slide 18: Capital Allocation
CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY + Multi - year capital deployment plan remains on track, subject to market conditions – Deployed ~$119 million during the first quarter – ~$580 million remaining in three - year target to deploy ~$1.4
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Financial Information
20 NON - GAAP FINANCIAL INFORMATION ⦁ "Revenue, Excluding Billable Expenses" represents revenue less billable expenses. We use Revenue, Excluding Billable Expense s because it provides management useful information about the Company's operating performance by excluding the impact of costs tha t are
Slide 21: a The use and definition of Non - GAAP financial measurements can be found
21 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 assets resulting from the
Slide 22: Non-GAAP Financial Information
22 NON - GAAP FINANCIAL INFORMATION (a) Represents the supplemental contribution to employees' dependent care FSA accounts in response to the COVID - 19 outbreak. (b) Reflects the combination of Interest expense and Other (expense) income, net from the condensed consolidated statement of operations.
Slide 23: Financial Results – Key Drivers
23 FINANCIAL RESULTS – KEY DRIVERS First Quarter Fiscal 2021 – Below is a summary of the key factors driving results for the fiscal 2021 first quarter ended June 30, 2020 as compared to the prior year period: • Revenue increased by 7.2% to $2.0 billion primarily driven by sustained strength in clien
Slide 24: COVID Update
24 COVID UPDATE Booz Allen has been able to quickly respond to the challenges of COVID. Because so much of its work is mission - critical, it must continue without interruption, and the key strategic trends that fuel the business have not changed. Booz Allen believes the demand for integrated techno
Slide 25: Shareholder and Stock Information
SHAREHOLDER AND STOCK INFORMATION 25 • Website: investors.boozallen.com • Contact Information - Media James Fisher Principal, Media Relations 703 - 377 - 7595 Fisher_James_W@bah.com - Corporate Governance Nancy Laben Executive Vice President and Chief Legal Officer 703 - 377 - 9042 Laben_Nancy@bah.c
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