Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Q2 FY2021 Earnings Presentation
26 slides from Booz Allen Hamilton's earnings presentation, Nov 12, 2020
Slide 1: Investor Presentation November 2020 Fiscal Year 2021 Second Quarter
Investor Presentation NOVEMBER 2020 FISCAL YEAR 2021 SECOND 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 ~80 – 90 % ADEPS GROWTH BY FY21 + ~2% Dividend Yield 7 - 9 % Low to Mid 10% ~$1.4B Annual Revenue Growth Adj. EBITDA Margins Capital Deployment = + + Investments in innovation, talent, and capabilities position us to help c
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 ~27,600 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 Clients
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 $400 $500 $600 $700 $800 FY16 FY17 FY18 FY19 FY20 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 Adj. EBITDA ADEPS 2.5% 7.1% 5.2% 8.7% 11.3% (3.5%) (1.3%) 0.5% 4.0% 5.6%
Slide 12: Historical Backlog & Book-to-Bill
12 $22.0 HISTORICAL BACKLOG & BOOK - TO - BILL LARGEST BACKLOG ON RECORD (1) For more information on the components of backlog, and the differences between backlog and remaining performance obligations, please see the Company's Form 10 - K for the fiscal year ended 3/31/20 BACKLOG ($ IN MILLIONS) (1
Slide 13: Delivering Shareholder Value
-100% 100% 300% 500% 700% 900% 1,100% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 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
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: Q2 FY21
QUARTERLY PERFORMANCE: Q2 FY21
Slide 16: Key Financial Results: Second Quarter Fiscal Year 2021
16 KEY FINANCIAL RESULTS SECOND QUARTER FISCAL YEAR 2021 RESULTS (1) Comparisons are to prior fiscal year period SECOND QUARTER (1) FIRST HALF (1) Revenue $2.0 billion 11.0% Increase $4.0 billion 9.1% Increase Revenue, Excluding Billable Expenses $1.4 billion 10.6% Increase $2.8 billion 10.5% Increa
Slide 17: Q2 FY'21 Performance Aligned with Investment Thesis
17 Q2 FY'21 PERFORMANCE ALIGNED WITH INVESTMENT THESIS – Organic growth in revenue of 11.0% year - over - year driven by strong client demand – Headcount and backlog year - over - year growth of 2.4% and 7.3%, respectively, to support future growth INDUSTRY LEADING ORGANIC REVENUE GROWTH CONTRACT PE
Slide 18: Capital Allocation
18 CAPITAL ALLOCATION DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY – Our multi - year capital deployment plan is to follow a disciplined and opportunistic approach, subject to market conditions – Deployed $73 million during the second quarter – $388 million of shar
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Measure Definitions
20 • "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 that are not indicative of the level of pro
Slide 21: Non-GAAP Reconciliation Notes
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: Second Quarter Fiscal 2021
23 FINANCIAL RESULTS – KEY DRIVERS Second Quarter Fiscal 2021 – Below is a summary of the key factors driving results for the fiscal 2021 second quarter ended September 30, 2020 as compared to the prior year period: • Revenue increased by 11.0% to $2.0 billion and Revenue, Excluding Billable Expense
Slide 24: Financial Results – Key Drivers: Six Months Ended September 30, 2020
24 FINANCIAL RESULTS – KEY DRIVERS Six Months Ended September 30, 2020 – Below is a summary of the key factors driving results for the fiscal 2021 six months ended September 30, 2020 as compared to the prior year period: • Net cash provided by operating activities was $566.0 million for the six mont
Slide 25: COVID Update
25 COVID UPDATE In response to the COVID - 19 pandemic, Booz Allen implemented a response based on three guiding priorities: 1. To protect the health and safety of our people, their families, and communities 2. To continue supporting the critical missions of our clients 3. To ensure the financial an
Slide 26: Shareholder and Stock Information
SHAREHOLDER AND STOCK INFORMATION 26 • Website: investors.boozallen.com • Contact Information: - Investor Relations Rubun Dey Principal, Investor Relations 703 - 377 - 5332 Dey_Rubun@bah.com - Media James Fisher Principal, Media Relations 703 - 377 - 7595 Fisher_James_W@bah.com - Corporate Governanc
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