Amentum Holdings, Inc. · NYSE:AMTM
Amentum — Investor Day (August 2024)
68 slides from Amentum's investor day presentation, Aug 13, 2024
Slide 1: Capital Markets Day
Capital Markets Day New York Stock Exchange New York, NY August 13, 2024 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 2: Disclosures
Disclosures Cautionary Note Regarding Forward Looking Statements This investor presentation contains or incorporates by reference statements that relate to future events and expectations and, as such, constitute forward-looking statements under the securities laws, including statements regarding the
Slide 3: Disclosures (cont’d)
Disclosures (cont’d) Trademarks, Trade Names and Service Marks We own or have rights to various trademarks, trade names and service marks that we use in connection with the operation of our business. Solely for convenience, trademarks, trade names and service marks referred to in this information st
Slide 4: Agenda
Agenda 10:00AM 12:00PM Welcome Break & Lunch Nathan Rutledge Senior Vice President & Head of Investor Relations 10:05AM 12:30PM Introducing a New Industry Leader Engineering and Technology Advantage Steve Demetriou Jill Bruning Executive Chair of the Board Chief Technology Officer 10:15AM 12:45PM St
Slide 5: Introducing a New Industry Leader
Introducing a New Industry Leader STEVE DEMETRIOU Executive Chair of the Board 5 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 6: Complementary Businesses With Aligned Cultures Unlock Value For All Stakeholders
Complementary Businesses With Aligned Cultures Unlock Value INTRODUCING A NEW For All Stakeholders INDUSTRY LEADER Legacy Critical Mission Solutions and Cybersecurity & Intelligence Units $7.9B 35K+ $27B $5.5B 18K+ $21B FY23 Global FY23 FY23 FY23 Revenue Workforce(1) Backlog(1) Advancing Revenue Glo
Slide 7: Transformational Combination Redefining the Industry
Transformational Combination Redefining the Industry INTRODUCING A NEW INDUSTRY LEADER Expanded capabilities and deeper Improved competitive positioning as customer relationships around the world. one of the largest players in the sector. Legacy Further diversification of business Deeper talent base
Slide 8: Experienced Management Team and Independent Board
Experienced Management Team and Independent Board INTRODUCING A NEW INDUSTRY LEADER Steve Demetriou (Executive Chair) John Heller (CEO) Steve Arnette (COO) 30 years of Public Company Experience 17 years of Public Company Experience 29 years of Public Company Experience ® ® ® ® ® ® ® Travis Johnson (
Slide 9: Strategy and Investment Highlights
Strategy and Investment Highlights JOHN HELLER Chief Executive Officer 9 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 10: Advancing the Future Together
Advancing the Future Together STRATEGY AND INVESTMENT HIGHLIGHTS FY25 OUR VISION ~$14B Revenue(1) To create a secure and vibrant future FY25 OUR MISSION ~$1.1B Adjusted EBITDA(1) Bringing advanced engineering and technology solutions to the most Combined significant challenges in science, security a
Slide 11: Strategically Positioned for Growth and Margin Expansion in a Stable and Attractive Industry
Strategically Positioned for Growth and Margin Expansion STRATEGY AND in a Stable and Attractive Industry INVESTMENT HIGHLIGHTS Attractive Industry… …Where Amentum is Differentiated Longstanding and Trusted Partner of Choice Complex Geopolitical Landscape for solving our customers’ largest, most cri
Slide 12: Longstanding and Trusted Partner of Choice for Solving Customers’ Most Complex Challenges
Longstanding and Trusted Partner of Choice for Solving Our Customers’ Most Complex Challenges STRATEGY AND INVESTMENT HIGHLIGHTS 100+ Year History Supporting Programs for Our Nation and Its Allies Legacy Current Projects Future Innovations ® Apollo Program Artemis Program Mission to Mars Cold War Oa
Slide 13: Industry Leader with Differentiated Scale and an Outstanding Competitive Position to Win
Industry Leader with Differentiated Scale and an STRATEGY AND Outstanding Competitive Position to Win INVESTMENT HIGHLIGHTS $B FY23 Revenue(1) $15.2 Amentum’s Benefits of Scale (1) $13.4 $10.0 Breadth of capabilities, depth of domain $7.7 $6.9 $6.8 expertise, and extensive customer access $5.1 Meani
Slide 14: Providing Full Lifecycle, Advanced Engineering and Technology Solutions in a Large Addressable Market
Providing Full Lifecycle, Advanced Engineering and STRATEGY AND Technology Solutions in a Large Addressable Market INVESTMENT HIGHLIGHTS Total Addressable Market $320B / Year (1) Growth Accelerators Across Markets Next-Generation Technologies Modernization Initiatives Proliferation of Data Evolving
Slide 15: Global Business Providing Innovative Solutions at Scale
Global Business Providing Innovative Solutions at Scale STRATEGY AND INVESTMENT HIGHLIGHTS United Kingdom NPIA: Nuclear propulsion support (U.K. MOD) U.S. WEST CPCCo: Environmental France remediation (U.S. DOE) Europe CMA: Construction and project 12%(1) management (ITER) U.S. EAST COMET: Space engi
Slide 16: Industry Leading Diversity Provides Stability and Growth Opportunities
Industry Leading Diversity Provides Stability and Growth STRATEGY AND Opportunities INVESTMENT HIGHLIGHTS END-MARKETS (1) CUSTOMER ACCESS CONTRACT COMPOSITION (1) International 3% Prime Contractor at Every Major U.S. Federal Agency Top contract Other U.S. DOD 4% Environment #2-5 contracts Navy 8% 15
Slide 17: Strategic Approach Leverages Differentiated Position to Drive Long Term Value Creation
Strategic Approach Leverages Differentiated Position to STRATEGY AND Drive Long Term Value Creation INVESTMENT HIGHLIGHTS Strategic Approach Amentum Today Value Creation Business Model Outcomes Focus on Large and Long-Term Advanced Engineering and Leverage Cross Selling to Technology Projects Global
Slide 18: Core Markets
Core Markets STEVE ARNETTE JILL BRUNING Chief Operating Officer Chief Technology Officer 18 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 19: Diverse Markets With Significant Runway for Growth
Diverse Markets With Significant Runway for Growth CORE MARKETS Environment Space Intelligence Defense Civilian 15% 46% 11% $2.1B $1.4B $1.4B $6.2B $2.3B FY23 Pro Forma FY23 Pro Forma FY23 Pro Forma FY23 Pro Forma FY23 Pro Forma Revenues Revenues Revenues Revenues Revenues 11% 17% (1) (1) (1) (1) $8
Slide 20: Environment
Environment CORE MARKETS Market Overview: Promoting Sustainable Solutions for Our Environment OVERVIEW AND KEY CAPABILITIES MARKET PROFILE Delivering engineering capabilities critical to FY23 Pro Forma Revenue Market Size and Growth(1,2) addressing global environmental challenges and Environment 15%
Slide 21: Environment: Our Differentiated Capabilities
Environment CORE MARKETS Our Differentiated Capabilities Environmental Laboratory and Energy Clean Energy Remediation Research Operations Consulting Solutions Comprehensive approach to Environmental remediation Extensive laboratory and Designing and advising on address sufficiency of of contaminated
Slide 22: Case Study: Environment – Oak Ridge Remediation
Case Study: CORE MARKETS Environment Contract Overview: Competitive Advantage: Oak Ridge Remediation for the Department of Energy(1) • Leading environmental cleanup • Completed first-ever cleanup of efforts across Oak Ridge uranium gaseous diffusion Reservation in Tennessee plant (ETTP) • Follows hi
Slide 23: Case Study: Environment – Energy Transition Programs
Case Study: CORE MARKETS Environment Contract Overview: Competitive Advantage: Energy Transition Programs Create clean, reliable and cost- • Depth and breadth of capability effective energy in Europe. throughout entire nuclear lifecycle: Projects include: ✓ Played key role in all U.K. nuclear • U.K.
Slide 24: Environment: Technology-Enabled Growth Strategy
Environment CORE MARKETS Technology-Enabled Growth Strategy Market Tailwinds Amentum Advantage • A global leader in environmental and • Differentiated capabilities in research DOE Environment Liability: energy solutions and development, technical consultancy, $500B+ and Growing and design engineerin
Slide 25: Space
Space CORE MARKETS Market Overview: Providing Innovative Solutions to Explore the Limits of the Universe ® OVERVIEW AND KEY CAPABILITIES MARKET PROFILE Delivering high-end solutions on technical and critical FY23 Pro Forma Revenue Market Size and Growth(1,2) Space contracts for earth observation, in
Slide 26: Space: Our Differentiated Capabilities
Space CORE MARKETS Our Differentiated Capabilities Space Mission Intelligence, Surveillance, and Development & Deployment Next-Generation Network Development, Integration Reconnaissance (ISR) of Space Flight Hardware / and Satellite and Execution Integration Systems Communications Development and De
Slide 27: Case Study: Space – NASA COMET
Case Study: CORE MARKETS Space NASA’s Consolidated Operations, Management, Contract Overview: Competitive Advantage: Engineering, and Test • Full-scale operations for the ✓ Broad range of lifecycle (COMET) Kennedy Space Center’s aerospace capabilities launch complex (1) ✓ Track record of strong ~$3.
Slide 28: Space: Technology-Enabled Growth Strategy
Space CORE MARKETS Technology-Enabled Growth Strategy Market Tailwinds Amentum Advantage • A leading non-OEM provider of • Employing advanced digital engineering and technology solutions engineering methods to transform Proliferation of Space Assets in support of the entire mission the development a
Slide 29: Intelligence
Intelligence CORE MARKETS Market Overview: Safeguarding National Interests Through Critical Intelligence Solutions OVERVIEW AND KEY CAPABILITIES MARKET PROFILE Delivering an information advantage for customers FY23 Pro Forma Revenue Market Size and Growth(1,2) Intelligence through next-generation so
Slide 30: Intelligence: Our Differentiated Capabilities
Intelligence CORE MARKETS Our Differentiated Capabilities All-Source Intelligence Software Development Counter Threat Cyber Operations and Collection & Analytics and Engineering Training Employ advanced Full lifecycle agile software Physical and cyber threat Comprehensive offensive analytical techni
Slide 31: Case Study: Intelligence – Solutions for Intelligence Analysis (SIA 3)
Case Study: CORE MARKETS Intelligence Solutions for Intelligence Contract Overview: Competitive Advantage: Analysis (SIA 3) • Supports analytic-enabling ✓ Extensive past performance solutions that range from and deep customer scientific and engineering relationships ~$17.1B (1) research to programma
Slide 32: Intelligence: Technology-Enabled Growth Strategy
Intelligence CORE MARKETS Technology-Enabled Growth Strategy Market Tailwinds Amentum Advantage • Strategically positioned at the cross- • Best-in-class cybersecurity training Increased Geopolitical section of analysis and technology, solutions for the U.S. government Tension utilizing 3,000+(1,2) c
Slide 33: Jill Bruning
JILL BRUNING Chief Technology Officer 33 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 34: Defense
Defense CORE MARKETS Market Overview: Delivering Reliable, Innovative Solutions to Defense Agencies OVERVIEW AND KEY CAPABILITIES MARKET PROFILE Delivering solutions to strengthen the warfighter’s FY23 Pro Forma Revenue Market Size and Growth(1,2) competitive advantage, by providing end-to-end lifec
Slide 35: Defense: Our Differentiated Capabilities
Defense CORE MARKETS Our Differentiated Capabilities Research, Development, Global Logistics & Supply All-Domain Engineering C5ISR Solutions Test & Evaluation (RDT&E) Chain Management Provides advanced test Engineering and Engineering, integration, Subject matter expertise, capabilities and best-in-
Slide 36: Case Study: Defense – ITEAMS INDOPACOM
Case Study: CORE MARKETS Defense Contract Overview: Competitive Advantage: ITEAMS INDOPACOM Technology, • Deliver critical C5ISR systems, • Amentum’s comprehensive including complex analysis, expertise and deep knowledge Experimentation, Analysis, experimentation, and testing to in C5ISR domains ena
Slide 37: Defense: Technology-Enabled Growth Strategy
Defense CORE MARKETS Technology-Enabled Growth Strategy Market Tailwinds Amentum Advantage • Over 70 years of providing multi- • Strong global presence with a domain solutions to all major U.S. strategic market leadership position Geopolitical Tension DOD customers in INDOPACOM • Decades long relati
Slide 38: Civilian
Civilian CORE MARKETS Market Overview: Empowering Lives with Cutting-Edge Civilian Solutions OVERVIEW AND KEY CAPABILITIES MARKET PROFILE Delivering highly-complex and critical citizen-based FY23 Pro Forma Revenue Market Size and Growth(1,2) Civilian solutions to our customers through the integratio
Slide 39: Civilian: Our Differentiated Capabilities
Civilian CORE MARKETS Our Differentiated Capabilities Integrated Biometrics Humanitarian and Stability Medical & Disaster Processing Analytics Solutions Operations Operations Integration of biometric- State-of-the art Peacekeeping and Rapidly integrated based information to investigative and capacit
Slide 40: Case Study: Civilian – Critical Management of Seized Assets
Case Study: CORE MARKETS Civilian Contract Overview: Competitive Advantage: U.S. Department of Treasury Critical Management of • Technology enabled processing ✓ Proven history of best-in- Seized Assets solutions for the logistics and class business processes program management of hundreds of thousan
Slide 41: Civilian: Technology-Enabled Growth Strategy
Civilian CORE MARKETS Technology-Enabled Growth Strategy Market Tailwinds Amentum Advantage Citizen Experience • Longstanding history integrating • Prime contractor for a diverse set of leading-edge technologies into civilian customers including HHS, various business process solutions DHS, State, FA
Slide 42: Leveraging Strength of Combined Business to Expand Pipeline and Accelerate Growth
Leveraging Strength of Combined Business to Expand Pipeline CORE MARKETS and Accelerate Growth Expansion of Current Addressable International Market Growth Utilize cross-selling to expand pipeline by bidding a Leverage combined geographic presence to broader range of opportunities in existing addres
Slide 43: Break and Lunch
Break and Lunch 30 MINUTES We will restart promptly at 12:30 43 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 44: Engineering and Technology Advantage
Engineering and Technology Advantage JILL BRUNING Chief Technology Officer 44 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 45: Integrating Next-Gen Technologies to Enhance Outcomes
Integrating Next-Gen Technologies to Enhance Outcomes ENGINEERING AND TECHNOLOGY ADVANTAGE DIGITAL SMART ENGINEERING AI / ML CYBERSECURITY INFRASTRUCTURE Key Enablers That Power Amentum’s Growth Across Our Core Markets 45 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 46: Engineering Centers of Excellence Advance Innovation
Engineering Centers of Excellence Advance Innovation ENGINEERING AND TECHNOLOGY ADVANTAGE Rapid Solutions Severn, MD Model-based Systems Systems Development Laboratory Engineering Tullahoma, Tennessee Crane, Indiana Technology and innovation approach drives strong Design Engineering Advanced Space E
Slide 47: Digital Engineering
Digital Engineering ENGINEERING AND TECHNOLOGY ADVANTAGE Case Study: Model-Based Systems Engineering Solutions Delivering Differentiated Capabilities RDT&E and systems engineering solutions Microelectronics for NSWC Crane’s Strategic and Trusted Microelectronics Division RDT&E and systems engineerin
Slide 48: Leveraging Engineering and Technology Solutions to Drive Growth Across Customers
Leveraging Engineering and Technology ENGINEERING AND Solutions to Drive Growth Across Customers TECHNOLOGY ADVANTAGE Developing key competencies on cutting edge ... to deploy with other customers technologies with our customers... across different markets Autonomous Marine Intelligence USAF Solutio
Slide 49: Financial Overview and Outlook
Financial Overview and Outlook T R AV I S J O H N S O N Chief Financial Officer 49 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 50: Industry Leading Financial Profile
Industry Leading FINANCIAL OVERVIEW AND OUTLOOK Financial Profile Key Highlights T&M ✓ Attractive financial profile with a 12% $47B demonstrated track record of FY23 Combined Backlog execution and performance Fixed (3.5x coverage)(1) Price 23% 23% Contract ✓ Achievable synergy objectives Type(4) 65%
Slide 51: Demonstrated Track Record of Execution and Performance
Demonstrated Track Record of Execution and Performance FINANCIAL OVERVIEW AND OUTLOOK REVENUE (1) ADJUSTED EBITDA (2) ADJUSTED EBITDA MARGIN (2) ($M) ($M) ($M) +3% +6% +80 CAGR CAGR BPS(4) ~8% $13,700 $1,100 $13,371 $12,831 $996 $929 $1,040 7.2% 7.5% 7.6% FY22A FY23A FY24E FY22A FY23A FY24E FY22A FY
Slide 52: Achievable Synergy Objectives to Support Margin Expansion and Organic Investment
Achievable Synergy Objectives to Support Margin FINANCIAL OVERVIEW AND Expansion and Organic Investment OUTLOOK Target Gross Cost Synergies Identified cost synergies generated from: (as a % of Revenue) 1.6% • Integration of enterprise systems and technology infrastructure • Consolidated operating st
Slide 53: Prudent Capital Structure with Attractive Terms as a Result of Well Received Debt Offering
Prudent Capital Structure with Attractive Terms as a Result of FINANCIAL OVERVIEW AND Well Received Debt Offering OUTLOOK ✓ Successful syndication of TLB (inclusive of SpinCo Expected Combined Capital Structure ($ in millions) Financing) and pricing of senior unsecured notes in Rate Maturity Amount
Slide 54: FY24 Pro Forma Financial Outlook and FY25 Guidance
FY24 Pro Forma Financial Outlook and FY25 Guidance FINANCIAL OVERVIEW AND OUTLOOK FY24(1) FY25 FY25 Assumptions ~3% Revenue growth at mid-point Revenue(2) $13.6B - $13.8B $13.8B - $14.2B excluding impact of SITEC ramp-down ~8% Adjusted EBITDA margin at mid-point Adjusted EBITDA(3) $1,030M - $1,050M
Slide 55: Long-Term Financial Outlook
Long-Term Financial Outlook FINANCIAL OVERVIEW AND OUTLOOK REVENUE(1) ADJUSTED EBITDA(2) FREE CASH FLOW(2) ($M) ($M) ($M) 4 - 6% 6 - 8% 10%+ CAGR CAGR CAGR $14,000 $1,125 $500 $1,080 FY25 FY28 FY25 FY28 FY25 FY28 Key Enablers and Assumptions ✓ Combined $47B backlog (3.5x coverage)(3) ✓ Mid-point $60
Slide 56: Clear Path to Continued Adjusted EBITDA Growth and Margin Expansion
Clear Path to Continued Adjusted EBITDA(2) Growth and Margin(2) FINANCIAL OVERVIEW AND Expansion OUTLOOK Key Enablers of Adjusted EBITDA Margin(2) Growth Adjusted EBITDA Margin(2) Expansion Accelerators Cost synergy Operational performance benefits and business mix Synergies Above +30-50bps +50-75bp
Slide 57: Disciplined Capital Deployment Strategy to Drive Sustained Value Creation
Disciplined Capital Deployment Strategy to FINANCIAL OVERVIEW AND Drive Sustained Value Creation OUTLOOK Near-Term Objectives Medium-Term Objectives ~3x Targeted Net Leverage(2) within 24 months of close via free cash flow generation and conservative earnings growth ~4x ~(1x) ~3x Invest for Strategi
Slide 58: Closing Remarks
Closing Remarks JOHN HELLER Chief Executive Officer 58 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 59: Amentum is Well Positioned to Drive Long-term Value for Stakeholders
Amentum is Well Positioned to Drive Long-term Value for Stakeholders Environment Space Intelligence Defense Civilian Trusted Culture of collaboration Innovative and experienced industry leader and performance excellence engineering and technology with global scale and outstanding delivering exceptio
Slide 60: Q&A
Q&A 60 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 61: Appendix
Appendix 61 A M E N T U M P R O P R I E T A R Y . A L L R I G H T S R E S E R V E D .
Slide 62: Key Customer Budget Profile Provides Stability and Enables Long-Term Growth
Key Customer Budget Profile Provides Stability and Enables Long-Term Growth Key Customer Budgets Grew in 17 of the Last 20 Years Global Threat and Near-peer Adversaries are Accelerating Growth KEY CUSTOMER AGGREGATE BUDGET – LAST 20 YEARS(1) KEY CUSTOMER AGGREGATE BUDGET ($B) CAGR (2019-24) DOD (O&M
Slide 63: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures Adjusted EBITDA: For the SpinCo Business: GAAP Net Earnings adjusted for interest income, affiliate interest income, income tax expense, and depreciation and amortization, and excludes the following discrete items: • Non-cash GAAP charges – Represents non-cash impair
Slide 64: Amentum Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Amentum Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation Adj. EBITDA and Adj. EBITDA Margin Reconciliation LTM ($M) FY22 FY23 H1 2023 H1 2024 Mar 2024 Revenue $7,676 $7,865 $3,772 $4,034 $8,127 Net income ($84) ($314) ($275) ($83) ($121) Interest expense, net 153 397 195 222 424 Provision (
Slide 65: Jacobs CMS + C&I Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Jacobs CMS + C&I Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation Adj. EBITDA and Adj. EBITDA Margin Reconciliation LTM ($M) FY22 FY23 H1 2023 H1 2024 Mar 2024 Revenue $5,176 $5,525 $2,661 $2,782 $5,646 Net income $238 $246 $110 $136 $272 Interest income (1) (3) (1) (2) (4) Affiliate intere
Slide 66: Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow Conversion
Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow Conversion Amentum LTM ($M) FY22 FY23 H1 2023 H1 2024 Mar 2024 Adjusted EBITDA $559 $597 $279 $310 $628 Capital Expenditure (18) (12) (3) (5) (14) Non-GAAP Free Cash Flow $541 $585 $276 $305 $614 Non-GAAP Free Cash Flow conversion % 96.8% 97.9% 98.
Slide 67: Footnote References
Footnote References Slide 21: #1) Source: https://www.energy.gov/em/articles/doe-awards-hanford-central-plateau-cleanup-contract #2) Source: https://www.amentum.com/amentum-team-awarded-21-billion-integrated-mission-completion-contract-at-the-savannah-river-site/ Slide 22: #3) Source: https://www.oa
Slide 68: Glossary
Glossary A G O ASC Application Support Center GAAP Generally Accepted Accounting Principles O&M Operations and Maintenance AMR Advanced Modular Reactors OEM Original Equipment Manufacturer H AV / VR Augmented Virtuality / Virtual Reality OSD Office of the Secretary of Defense HBTSS Hypersonic and Ba