Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (February 2024)
26 slides from Booz Allen Hamilton's investor presentation, Feb 6, 2024
Slide 1: February 2024 Investor Presentation Deck
February 2024 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
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 33,800 employees1 ~1,100 LOCATIONS IN 20+ COUNTRIES 28% are Veterans 65% hold security clearances 87% hold bachelor’s degrees 40% hold master’s degrees 3% hold doctoral degrees D IV ER SI TY M EA SU RE S2 CR ED E
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: Technical Experience Groups (TXGs)
7 Justin Neroda (CTO) Scott Jachimski (GDS) PLATFORM & INFRASTRUCTURE Raynor Dahlquist (NSS) Jandria Alexander (GDS) Saurin Shah (NSS) Craig Swanson (CS) Santiago Milan (CS) Cameron Mayer (GDS) Dan Tucker (CS) Dave Gagliano (GDC) Brian Zimmerman (GDS) Adam Weiner (GDS) Osama Malik (CS) Brian MacCart
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 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE Delivering Industry-Leading Organic Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Organic Revenue Growth(1)(2) Strong Cash Flow Generation ($ in millions) Significant Capita
Slide 10: Capital Deployment: FY23 in Review
CAPITAL DEPLOYMENT: FY23 IN REVIEW OUR CAPITAL DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH THAT MAXIMIZES NEAR- AND LONG-TERM SHAREHOLDER VALUE 10 Quarterly Dividends Sustained strong annual dividend growth since 2013 Strategic Transactions Strategic investments to fuel growth
Slide 11: Outperforming the Market
11 OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEMENT Total Shareholder Returns vs. Core Peers One-, Three- and Five-Year Periods(1) Total Shareholder Returns vs. Broader Indexes Five-Year Period(1) (1) As of March 31, 202
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 Historical Backlog(1)(2) ($ in millions) (1) As reported in our Forms 10-K for the fiscal years ended March 31, 2019, 2020, 2021, 2022 and 2023. (2) Backlog presented as of March
Slide 13: FY24 Pipeline and Demand Dynamics
13 FY24 PIPELINE AND DEMAND DYNAMICS (1) Qualified pipeline for FY24 and backlog as of December 31, 2023. (2) Includes awards that were under protest as of December 31, 2023. (3) Rates disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Consideration Conve
Slide 14: 2023 ESG Highlights at a Glance
14 (1) Unless otherwise specified, data points noted on this slide are as of March 31, 2023. (2) As reported in the Company’s annual proxy statement filed with the SEC on June 15, 2023. 2023 ESG HIGHLIGHTS AT A GLANCE ENVIRONMENTAL, SOCIAL, GOVERNANCE IMPACTS SUPPORT LONG-TERM RESILIENCE(1)
Slide 15: Third Quarter Fiscal 2024 Financial Results & Fiscal 2024 Outlook
THIRD QUARTER FISCAL 2024 FINANCIAL RESULTS & FISCAL 2024 Outlook
Slide 16: Key Financial Results: Third Quarter Fiscal Year 2024
16 KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2024 RESULTS (1) Comparisons are to prior fiscal year period. (2) Reconciliations of Adjusted EBITDA and Adjusted EBITDA Margin on Revenue can be found on Slide 22. Net Income attributable to common stockholders was $145.6 million and $477.8 million
Slide 17: Financial Outlook: Full Year Fiscal 2024 Guidance
17 FINANCIAL OUTLOOK FULL YEAR FISCAL 2024 GUIDANCE(1) OPERATING PERFORMANCE Updated Fiscal Year 2024 Guidance Prior Fiscal Year 2024 Guidance Revenue Growth 14.0% – 15.0% 11.0% – 14.0% Adjusted EBITDA $1,155 – $1,175 million $1,115 – $1,145 million Adjusted EBITDA Margin on Revenue ~11% High 10% to
Slide 18: FY2023-FY2025 Investment Thesis
FY2023 − FY2025 INVESTMENT THESIS
Slide 19: Investment Thesis: Exceptional Shareholder Value Creation
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 EBITDA
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Financial Information
21 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)
22 NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (In thousands, except share and per share data) 2023 2022 2023 2022 Revenue, Excluding Billable Expenses Revenue $ 2,569,801 $ 2,277,074 $ 7,890,569 $ 6,825,650 Less: Billable expenses 799,89
Slide 23: Non-GAAP Financial Information (Unaudited)
23 NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, Adjusted Net Income Net income attributable to common stockholders $ 145,644 $ 30,997 $ 477,750 $ 340,213 Change in provision for claimed indirect costs (a) — — (18,345) — Acquisition and div
Slide 24: Non-GAAP Financial Information (Unaudited)
24 NON-GAAP FINANCIAL INFORMATION (Unaudited) (a) Represents the reduction to our provision for claimed indirect costs recorded during the second quarter of fiscal 2024, which resulted in a corresponding increase to revenue, as a result of the Defense Contract Audit Agency's findings related to its
Slide 25: Financial Results – Key Drivers
25 FINANCIAL RESULTS – KEY DRIVERS Third Quarter Fiscal 2024 – Below is a summary of the key factors driving results for the fiscal 2024 third quarter ended December 31, 2023 as compared to the prior year period: • Revenue increased 12.9% to $2.6 billion and Revenue, Excluding Billable Expenses incr
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.co
Booz Allen Hamilton Holding — Investor Presentation (February 2024) on 6ix