Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (November 2021)
27 slides from Booz Allen Hamilton's investor presentation, Nov 10, 2021
Slide 1: Investor Presentation November 2021 Fiscal Year 2022
Investor Presentation November 2021 FISCAL YEAR 2022
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 and earnings growth Growing backlog, supported by a robust pipeline and sustained win rates Strong Balance Sheet Driven by Robust Cash Gene
Slide 5: Leading From the Top
5 LEADING FROM THE TOP 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 Lead Kar
Slide 6: Vision 2020: Our Transformation Strategy
VISION 2020: OUR TRANSFORMATION STRATEGY IN FY14, OUR TEAM LAUNCHED A COMPREHENSIVE STRATEGY TO CREATE SUSTAINABLE LONG-TERM GROWTH AT THE INTERSECTION OF MISSION AND TECHNOLOGY 6 Moved closer to the center of our clients’ core missions Under the Vision 2020 Strategy, we: Increased the technical con
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 ) C O N S U LT I N G D I G I TA L S O L U T I O N S A N A LY T I C S C Y B E R
Slide 8: Broad Customer Base
BROAD CUSTOMER BASE WE SERVE A BROAD CUSTOMER BASE THAT SPANS ACROSS THE U.S. GOVERNMENT, INTERNATIONAL AND COMMERCIAL MARKETS 8 + Commercial: Financial Services, Health and Life Sciences, Energy, and Technology + International: Middle East and Europe GLOBAL COMMERCIAL, 3% + U.S. Intelligence Agenci
Slide 9: Strong Financial Returns
9 $506M $840M 9.4% 10.7% FY16 FY21 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE $5.4B $7.9B FY16 FY21 7.8% CAGR Strategic Revenue Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Total Revenue Growth(1) Strong Earnings Grow
Slide 10: Capital Deployment: FY21 in Review
CAPITAL DEPLOYMENT: FY21 IN REVIEW OUR DEPLOYMENT PLANS FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH THAT SUPPORTS LONG-TERM SHAREHOLDER VALUE 10 $B Quarterly Dividends Sustained strong annual dividend growth since 2013 Capital Expenditures Driving growth through strategic investments in our infrast
Slide 11: Outperforming the Market
11 OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEMENT 147% 49% 15% 190% 118% 19% 5-year 3-year 1-year Booz Allen Defense Services Total Shareholder Returns vs. Core Peers One-, Three- and Five-Year Periods(1) 118% 61% 112%
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 2,815 2,685 3,436 3,415 3,510 3,098 4,161 3,687 4,518 6,086 7,679 9,174 12,198 12,796 14,436 FY17 FY18 FY19 FY20 FY21 Funded Unfunded Priced Options 13,592 16,020 19,321 20,729 2
Slide 13: Booz Allen FY21 ESG at a Glance
13 BOOZ ALLEN FY21 ESG AT A GLANCE ENVIRONMENTAL, SOCIAL, GOVERNANCE IMPACT SUPPORTS LONG-TERM RESILIENCE
Slide 14: Fiscal 2021 Financial Results & Fiscal 2022 Outlook
FISCAL 2021 FINANCIAL RESULTS & FISCAL 2022 OUTLOOK
Slide 15: Key Financial Results: Fiscal Year 2021 Results
15 KEY FINANCIAL RESULTS FISCAL YEAR 2021 RESULTS (1) Comparisons are to prior fiscal year; totals may not sum due to rounding. FISCAL YEAR 2021 (1) Revenue $7.9 billion 5.3% Increase Revenue, Excluding Billable Expenses $5.5 billion 7.1% Increase Adjusted EBITDA $840 million 11.4% Increase Adjusted
Slide 16: Financial Outlook: Reaffirming Full Year FY22 Guidance
16 FINANCIAL OUTLOOK REAFFIRMING FULL YEAR FY22 GUIDANCE OPERATING PERFORMANCE Revenue Growth 7.0 – 10.0% Adjusted EBITDA Margin on Revenue Mid 10% Adjusted Diluted EPS(1) $4.10 – $4.30 Net Cash Provided by Operating Activities $800 – $850 million (1) Assumes an effective tax rate of 22–24%; an aver
Slide 17: FY22 ADEPS Walk
17 FY22 ADEPS WALK REAFFIRMING FY22 ADEPS GUIDANCE April FY22 ADEPS Guidance $4.10 - $4.30 Bond Interest ~$(0.09) Operational, Other Below-the-Line Items (e.g., Tax, Share Count) $0.09 November FY22 ADEPS Guidance(1) $4.10 - $4.30 (1) Reaffirming our FY22 guidance, which includes the added interest
Slide 18: FY22 Income Tax Drivers
18 FY22 INCOME TAX DRIVERS REAFFIRMING EFFECTIVE TAX RATE BRIDGE FROM FY21 TO FY22 FY21 Effective Tax Rate on an Adjusted Diluted EPS Basis 20.1% Puts and Takes: '– Marginal tax rate on incremental pretax income(1) +~0.5 – 1.0% '– State and local income tax credits(2) +~0.5 – 1.0% '– Other discrete
Slide 19: FY2023 – FY2025 Investment Thesis
FY2023 – FY2025 INVESTMENT THESIS
Slide 20: Exceptional Shareholder Value Creation
EXCEPTIONAL SHAREHOLDER VALUE CREATION ADJUSTED EBITDA. biscitined Capital - Deployment Strong Mid 10% ce 4 5B Adjusted EBITDA
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
23 NON-GAAP FINANCIAL INFORMATION (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. Acquisition costs primarily include costs
Slide 24: (a) Reflects the combination of Interest expense and Other income (expense), net from the
24 (a) Reflects the combination of Interest expense and Other income (expense), net from the consolidated statement of operations. (b) Reflects expenses associated with debt financing activities. (c) Represents the supplemental contribution to employees' dependent care FSA accounts in response to CO
Slide 25: Financial Results – Key Drivers: Second Quarter Fiscal 2022
25 FINANCIAL RESULTS – KEY DRIVERS Second Quarter Fiscal 2022 – Below is a summary of the key factors driving results for the fiscal 2022 second quarter ended September 30, 2021 as compared to the prior year period: • Revenue increased by 4.3% to $2.1 billion and Revenue, Excluding Billable Expenses
Slide 26: Financial Results – Key Drivers: Fiscal Year Ended March 31, 2021
26 FINANCIAL RESULTS – KEY DRIVERS Fiscal Year Ended March 31, 2021 – Below is a summary of the key factors driving results for the fiscal year ended March 31, 2021 as compared to the prior year: • Revenue increased by 5.3% to $7.9 billion and Revenue, Excluding Billable Expenses increased 7.1% to $
Slide 27: Booz Allen Investor & Media Relations Contacts
BOOZ ALLEN INVESTOR & MEDIA RELATIONS CONTACTS 27 • Website: investors.boozallen.com • Contact Information: - Investor Relations Laura S Adams Vice President, Chief Accounting Officer 703-599-8308 Adams_Laura_S@bah.com - Media Jessica Klenk Director, Media Relations 703-377-4296 Klenk_Jessica@bah.co
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