Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (June 2020)
24 slides from Booz Allen Hamilton's investor presentation, Jun 2, 2020
Slide 1: Investor Presentation Fiscal Year 2020
Investor Presentation MAY 20 20 FISCAL YEAR 2020
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 STRONG FINANCIAL RETURNS 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 positi
Slide 4: Booz Allen's Leadership Team
BOOZ ALLEN’S LEADERSHIP TEAM OUR PURPOSE, AS A FIRM, IS TO EMPOWER PEOPLE TO CHANGE THE WORLD 4 Our employees work at 500+ LOCATIONS IN 25+ COUNTRIES ~27,200 Number of employees (1) ~29% (1) are Veterans ~66% (1) of staff with security clearances ~86% (1) hold bachelor’s degrees ~40% (1) hold master
Slide 5: An Industry Leader
AN INDUSTRY LEADER BOOZ ALLEN CONTINUES ITS 100+ YEAR HISTORY AS AN INDUSTRY LEADER 5 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 6: 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 7: Broad Customer Base Spanning U.S. Government, International and Commercial Clients
BROAD CUSTOMER BASE SPANNING THE U.S. GOVERNMENT, INTERNATIONAL AND COMMERCIAL CLIENTS 7 • Commercial: Aerospace, Financial Services, Health and Life Sciences, Energy, Transportation • International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (4%) • U.S. Intellige
Slide 8: Vision 2020 Growth Strategy
VISION 2020 GROWTH STRATEGY CURRENTLY IN ITS SEVENTH YEAR OF IMPLEMENTATION, WE’RE IN THE “PAYOFF PERIOD” 8 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 9: Vision 2020 Results
VISION 2020 RESULTS BOOZ ALLEN ANTICIPATES OUR STRONG FINANCIAL PERFORMANCE WILL CONTINUE 9 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 (IN
Slide 10: Strong Earnings Growth
STRONG EARNINGS GROWTH DERIVATIVE OF ROBUST, ABOVE - MARKET ORGANIC REVENUE GROWTH 10 $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 11: Historical Backlog & Book-to-Bill
11 HISTORICAL BACKLOG & BOOK - TO - BILL BACKLOG (1) BOOK - TO - BILL TRENDS (3) (2) (2) (2) (2) (2) (3) (3) (3) (3) (3) (3) (2) (2) (2) (2) (2) (3) (3) (3) (3) (3) $20.5 (3) (3) $22.9 (4) $22.0 (4) (1) For more information on the components of backlog, and the differences between backlog and remain
Slide 12: 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 12 1) TSR as of 4/30/2020 and assum
Slide 13: Quarterly Dividend
QUARTERLY DIVIDEND BOOZ ALLEN HAS AND WILL CONTINUE TO MAKE OUR QUARTERLY DIVIDEND A FOCUS OF OUR INVESTMENT THESIS 13 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 14: Fiscal Year 2020 Performance
FISCAL YEAR 2020 PERFORMANCE
Slide 15: Key Financial Results Fiscal Year 2020
15 KEY FINANCIAL RESULTS FISCAL YEAR 2020 RESULTS (1) Comparisons are to prior fiscal year period FOURTH QUARTER (1) FISCAL YEAR 2020 (1) Revenue $2.0 billion 10.6% Increase $7.5 billion 11.3% Increase Revenue, Excluding Billable Expenses $1.4 billion 9.8% Increase $5.2 billion 9.9% Increase Adjuste
Slide 16: FY'20 Performance: Aligned with Investment Thesis
16 FY'20 PERFORMANCE: ALIGNED WITH INVESTMENT THESIS – Organic growth in revenue of 11.3% year - over - year driven by strong client demand – Headcount and backlog year - over - year growth of 4.2% and 7.3%, respectively, to support future growth – Adj. EBITDA Margin on Revenue of 10.1%; Adj. EBITDA
Slide 17: Capital Allocation
17 CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY – Multi - year capital deployment plan remains on track, subject to market conditions – Deployed ~$333 million during fiscal 2020, including ~$199 million during the fourth quarter – Reaffirming thr
Slide 18: Appendix
18 APPENDIX
Slide 19: Non-GAAP Financial Information
19 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 20: Non-GAAP Financial Information
20 NON - GAAP FINANCIAL INFORMATION (a) Fiscal 2020 and fiscal 2019 reflect debt refinancing costs incurred in connection with the refinancing transactions consummated on November 26, 2019 and July 23, 2018, respectively. (b) Represents the supplemental contribution to employees dependent care FSA a
Slide 21: Unaudited Non-GAAP Financial Information
21 Unaudited Non-GAAP Financial Information (a) $ in thousands, except for shares and per share data FY2016 FY2017 FY2018 FY2019 FY2020 Revenue, Excluding Billable Expenses Revenue 5,405,738$ 5,809,491$ 6,167,600$ 6,704,037$ 7,463,841$ Billable Expenses 1,513,083 1,751,077 1,861,312 2,004,664 2,298,
Slide 22: Financial Results – Key Drivers Fourth Quarter Fiscal 2020
22 FINANCIAL RESULTS – KEY DRIVERS Fourth Quarter Fiscal 2020 – Below is a summary of the key factors driving results for the fiscal 2020 fourth quarter ended March 31, 2020 as compared to the prior year period: • Revenue increased by 10.6% to $2.0 billion driven by sustained strength in client dema
Slide 23: Financial Results – Key Drivers Fiscal Year Ended March 31, 2020
23 FINANCIAL RESULTS – KEY DRIVERS Fiscal Year Ended March 31, 2020 – Booz Allen's cumulative performance for fiscal 2020 has resulted in: • Net cash provided by operating activities was $551.4 million for the year ended March 31, 2020 as compared to $499.6 million in the prior year. The increase in
Slide 24: Shareholder and Stock Information
SHAREHOLDER AND STOCK INFORMATION 24 • Website: investors.boozallen.com • Contact Information - Investor Relations Nicholas Veasey Vice President of Investor Relations 703 - 377 - 5332 Veasey_Nicholas@bah.com - Media James Fisher Principal, Media Relations 703 - 377 - 7595 Fisher_James_W@bah.com - C
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