Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (July 2018)
36 slides from Booz Allen Hamilton's investor presentation, Jul 9, 2018
Slide 1: Investor Presentation July 2018 - Fiscal Year 2018 Full Year and Fourth Quarter
Investor Presentation July 2018* Fiscal Year 2018 FULL YEAR AND fourth Quarter The following presentation contains financial and other information set forth in the Company’s presentation dated June 6, 2018, and previously filed with the SEC on June 6, 2018. Such information speaks only as of June 6,
Slide 2: Forward Looking Safe Harbor Statement
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 include
Slide 3: Investment thesis
UNIQUE MARKET POSITION Investment thesis 50% ADEPS Growth (+~2% Dividend Yield) OPTION VALUE STRONG FINANCIAL RETURNS = + ~$2 3-year goals: ADEPS ADEPS 6–9% 10–30 bps ~$1.4B Annual Revenue Growth Margin Expansion Capital Deployment, Incl Dividends ~$3 FY18 FY21
Slide 4: A leader with a proud history
A leader with a proud history Company Overview We are a global firm of approximately 24,600 diverse, passionate, and exceptional people driven to excel, do right, and realize positive change in everything we do. We bring bold thinking and a desire to be the best in our work in consulting, analytics,
Slide 5: Company history
Company history 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 $100M) Supported GSA in overhauling its telecommunications network (largest contract to date at that time at $620M) Spin-of
Slide 6: Service offerings
Service offerings Digital Solutions Engineering Analytics Directed Energy Machine Intelligence Engineering delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems. Cyber focuses on active prevention, detection, and cost effectiveness
Slide 7: Growth strategy
Growth strategy Key Elements Moving closer to the center of our clients’ core mission Increasing the technical content of our work Attracting and retaining superior talent in diverse areas of expertise Leveraging innovation to deliver complex, differentiated, end-to-end solutions Creating a broad ne
Slide 8: Successful results from Vision 2020
Successful results from Vision 2020 ACCELERATING ADJUSTED EBITDA, ADEPS GROWTH ORGANIC REVENUE GROWTH CONSISTENTLY ABOVE MARKET (1), (2), (3) Gov Services Industry comprised include Leidos, SAIC, ManTech, CACI, Engility, and CSRA Organic growth encompasses any disclosed commentary (through SEC filin
Slide 9: Key areas of differentiation
Key areas of differentiation We attribute our business and financial success to five key features Our culture Our purpose, as a firm, is to empower people to change the world, and we are committed to our employees Our strategy Successful execution of Vision 2020 reflects our ability to reinvent ours
Slide 10: History of growing faster than market
History of growing faster than market Source: Federal Procurement Data Systems (FPDS) FY09 and FY10 discretionary government budget growth rates impacted by the American Reinvestment and Recovery Act (ARRA) Based on government fiscal year; assumes government fiscal year 2017 aligns to Booz Allen fis
Slide 11: High-quality and diversified contract portfolio
High-quality and diversified contract portfolio Our Diversified revenue base minimizes volatility Delivered on 4,997 U.S. government contracts and task orders (1) Largest definite contract accounted for 2.2% of revenue 75% of revenue was derived from over 3,900 active task orders under indefinite de
Slide 12: Diversified client base
Diversified client base Commercial: Financial Services, Health and Life Sciences, Energy, Transportation International: Middle East, North Africa Region, and Select Asian Markets GLOBAL / COMMERCIAL (3.2%) U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agency,
Slide 13: Large and growing addressable market
LARGE AND GROWING ADDRESSABLE MARKET U.S. Office of Management and Budget. 2017 Budget U.S. Government Total Contracted Addressable Contracted + INTEL, COMMERCIAL & INTERNATIONAL U.S. GOVERNMENT 2018 DISCRETIONARY BUDGET (1) + INTEL CAGR 2017-23 +4.4% Historical = Projected = TOTAL CONTRACTOR-ADDRES
Slide 14: Strong backlog growth
strong backlog growth FY13 backlog excludes backlog gained in the BES acquisition. SOLID BACKLOG GROWTH PROVIDES STRONG REVENUE VISIBILITY ($B) Expecting Strong FY19 Bookings $25B QUALIFIED PIPELINE, +10% YOY (60% New Work) $8B in Proposals Submitted $17B in Opportunities in Pre-Proposal +15% +18% +
Slide 15: Long-term shareholder value
Long-term shareholder value We are creating value from accelerating growth through a virtuous cycle Results in high-quality work for clients and strong financial performance Doing work at the center of clients’ missions Allows us to identify and invest in high-demand capabilities Positions us to win
Slide 16: Track record of deploying capital to deliver shareholder value
Track record of deploying capital to deliver shareholder value As of 5/31/2018; Assumes dividend reinvested Capital deployed since IPO: ~$2.9B ($B) Capital deployed and TSR Performance SINCE IPO TSR Since IPO : 499% (1) Quarterly Div.
Slide 17: Quarterly performance: Q4 FY18
Quarterly performance: Q4 FY18
Slide 18: FY18 highlights
FY18 highlights KEY PERFORMANCE INDICATORS Delivered record earnings—with our highest Adjusted EBITDA since the firm went public Exceeded $6 billion in revenue and $2.00 in earnings per share for the first time Maintained industry-leading organic revenue growth Significantly accelerated growth in Re
Slide 19: Key financial results
Key financial results FISCAL YEAR 2018 RESULTS Comparisons are to prior fiscal period Fourth Quarter (1) Fy18 (1) Revenue $1.6 billion 3.4% Increase $6.2 billion 6.3% Increase Revenue, Excluding Billable Expenses $1.2 billion 4.7% Increase $4.3 billion 6.3% Increase Net Income $84.9 million 28.1% In
Slide 20: Income tax drivers
Income tax drivers Effective tax rate and drivers Previous Fiscal 2018 Effective Tax Rate Guidance 37% - 38% Puts and Takes: - Federal statutory tax rate (1) - ~3.5% - State and local income taxes, net of federal tax + ~0.5% - Tax credits and other discrete items - ~0.5% Revised Fiscal 2018 Annual E
Slide 21: Capital allocation
Capital allocation DELIVERING STRONG CAPITAL RETURNS THROUGH EFFICIENT CAPITAL DEPLOYMENT STRATEGY Exceeded Fiscal Year 2018 goal of returning 100% of FCF to investors Returned $373 million to shareholders in Fiscal Year 2018 (~130% of FCF) Paid $269.6 million to repurchase 7.6 million shares (1) Pa
Slide 22: Second highest full-year book-to-bill since our IPO
Second Highest full-year BTB since our IPO Quarterly book to bill trend Fiscal year book to bill trend
Slide 23: Investment thesis
UNIQUE MARKET POSITION Investment thesis 50% ADEPS Growth (+~2% Dividend Yield) OPTION VALUE STRONG FINANCIAL RETURNS = + ~$2 3-year goals: ADEPS ADEPS 6–9% 10–30 bps ~$1.4B Annual Revenue Growth Margin Expansion Capital Deployment, Incl Dividends ~$3 FY18 FY21
Slide 24: Adjusted EBITDA margin outlook
ADJUSTED EBITDA MARGIN OUTLOOK Goal of 10-30 bps adjusted EBITDA margin improvement over 3 years Margin levers Mix shift—commercial, international Fixed-price technology work Emerging businesses Operating scale Potential Limits on Margin expansion Growth in defense and intelligence work – typically
Slide 25: Appendix
appendix
Slide 26: Non-GAAP financial information
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 indic
Slide 27: Non-GAAP financial information
Non-GAAP financial information a Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group. b Reflects debt refinancing costs incurred in connection with the refinancing transaction consummated on July 13, 2016. c Reflects the combination of Intere
Slide 28: Shareholder and stock information
Shareholder and stock information Booz ALLEN Hamilton holding corporation’s class a common stock began trading on the new York stock exchange (NYSE) on Nov 17, 2010 Fiscal Year – Booz Allen Hamilton Holding Corporation’s fiscal year starts April 1 and ends March 31 Share Price Information – Booz All
Slide 29: Shareholder and stock information
Shareholder and stock information Booz Allen has utilized distributions (recurring and special) as part of its capital deployment strategy Regular: The firm has issued regular dividends each quarter since FY12 and has increased the dividend periodically when deemed appropriate. A history of past div
Slide 30: Shareholder and stock information
Shareholder and stock information Transfer Agent & Registrar Computershare www.computershare.com/investor/ P.O. Box 30170 College Station, TX 77842-3170 Phone: 866-390-3908 Computershare maintains records for registered stockholders and provides stockholder services at no charge, including: Independ
Slide 31: Shareholder and stock information
Shareholder and stock information Website: investors.boozallen.com Contact Information Investor Relations Nick Veasey Director of Investor Relations 703/377-2124 Veasey_Nicholas@bah.com Media James Fisher Principal, Media Relations 703/377-7595 Fisher_James_W@bah.com Corporate Governance Nancy Laben
Slide 32: Financial and operational highlights
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Basic and diluted weighted average shares outstanding and earnings per common share amounts are calculated using the two-class method. Condensed consolidated statement of operatio
Slide 33: Financial and operational highlights
Financial and operational highlights Unaudited non-GAAP financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the Company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 34: Financial and operational highlights
Financial and operational highlights Unaudited non-GAAP financial information (a) a The use and definition of Non-GAAP financial measurements can be found in the company's public filings. b Reflects amortization of intangible assets resulting from the acquisition of our Company by The Carlyle Group.
Slide 35: Financial and operational highlights: additional operating data
Financial and operational highlights Additional operating data (a) a All interim periods reflect unaudited numbers while annual numbers are audited. b Calculated as the change in total backlog during the relevant fiscal period plus the relevant fiscal period revenue, all divided by the relevant fisc
Slide 36: Financial and operational highlights: other key financial metrics
Financial and operational highlights a All interim periods reflect unaudited numbers while annual numbers are audited. b Cash flow numbers are on a year-to-date basis for all periods presented. Other Key Financial Metrics (a)
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