Booz Allen Hamilton Holding Corporation · NYSE:BAH
Booz Allen Hamilton — Investor Presentation (August 2022)
25 slides from Booz Allen Hamilton's investor presentation, Aug 8, 2022
Slide 1: August 2022 Investor Presentation Deck
August 2022 Investor Presentation Deck
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 of Everything We Do
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 ~29,300 employees1 ~1,000 LOCATIONS IN 25 COUNTRIES (1) As reported in Booz Allen’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. (2) As reported in Booz Allen’s Annual Report on Form
Slide 6: VoLT: Our Growth Strategy
VoLT: OUR GROWTH STRATEGY WE WILL OPERATE WITH INCREASED SPEED, AGILITY AND SCALE IN A RAPIDLY CHANGING, HIGHLY COMPETITIVE AND INCREASINGLY TECHNICAL ENVIRONMENT 6 BUILDING BLOCKS OF VoLT ACHIEVED BY • Doubling-down on innovation • Using strategic M&A and partnerships to build market positions • Ma
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 ) ANALYTICS D I G I TA L S O L U T I O N S E N G I N E E R I N G C Y B E R C O
Slide 8: Broad Customer Base
BROAD CUSTOMER BASE WE SERVE A BROAD CUSTOMER BASE THAT SPANS ACROSS THE U.S. GOVERNMENT AND COMMERCIAL MARKETS 8 + Commercial: Financial Services, Health and Life Sciences, Energy, and Technology + International GLOBAL COMMERCIAL, 3% + U.S. Intelligence Agencies: National Security Agency, National
Slide 9: Strong Financial Returns
9 $569 $935 9.8% 11.2% FY17 FY22 STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE $5.8 $8.0 FY17 FY22 6.7% CAGR Returning to Industry-Leading Organic Growth ($ in billions) Sustained Adjusted EBITDA & Margin Expansion ($ in millions) Organic Revenue Growth(1) St
Slide 10: Capital Deployment: FY22 in Review
CAPITAL DEPLOYMENT: FY22 IN REVIEW OUR DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH THAT MAXIMIZES NEAR- AND LONG-TERM SHAREHOLDER VALUE 10 $B Quarterly Dividends Sustained strong annual dividend growth since 2013 Strategic Acquisitions(2) Strategic investments to fuel growth S
Slide 11: Outperforming the Market
11 OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEMENT 66% 26% 4% 170% 59% 11% 5-year 3-year 1-year Booz Allen Defense Services Total Shareholder Returns vs. Core Peers One-, Three- and Five-Year Periods(1) 170% 108% 158% B
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 2,685 3,436 3,415 3,510 3,710 4,161 3,687 4,518 6,086 9,925 9,174 12,198 12,796 14,436 15,612 FY18 FY19 FY20 FY21 FY22 Funded Unfunded Priced Options 16,020 19,321 20,729 24,032
Slide 13: Environment, Social and Governance
13 GOVERNANCE 23,700 metric tons CO2e in total greenhouse gas emissions (down from 96,400 in FY20)(1) Achieved goals set in 2015 to reduce Scope 2 emissions by 15% well ahead of schedule Committed to set science-based targets through the Science Based Targets initiative Joined Business Ambition for
Slide 14: First Quarter Fiscal 2023 Financial Results & Fiscal 2023 Outlook
FIRST QUARTER FISCAL 2023 FINANCIAL RESULTS & FISCAL 2023 OUTLOOK
Slide 15: Key Financial Results: First Quarter Fiscal Year 2023
15 KEY FINANCIAL RESULTS FIRST QUARTER FISCAL YEAR 2023 RESULTS (1) Comparisons are to prior fiscal year period. FIRST QUARTER (1) Revenue $2.2 billion +13.1% Revenue, Excluding Billable Expenses $1.6 billion +9.9% Adjusted EBITDA $253 million +6.1% Adjusted EBITDA Margin on Revenue 11.2% (6.2)% Net
Slide 16: Financial Outlook: Reaffirming Full Year Fiscal 2023 Guidance
16 FINANCIAL OUTLOOK REAFFIRMING FULL YEAR FISCAL 2023 GUIDANCE OPERATING PERFORMANCE Total Revenue Growth(1) 5.0 - 9.0% Adjusted EBITDA $950 - $1,000 million Adjusted EBITDA Margin on Revenue Mid-to-High 10% Adjusted Diluted EPS(2) $4.15 - $4.45 Net Cash Provided by Operating Activities(3) $850 – $
Slide 17: Fiscal Year 2023 Operating Cash Bridge
17 FISCAL YEAR 2023 OPERATING CASH BRIDGE (1) Totals may not sum due to rounding. (2) Adding back fiscal year 2022 cash tax payments to show an equal comparison to fiscal year 2023 Operating Cash Flow before cash tax payments. (3) Reflects the expected impact of the midpoints of fiscal 2023 Adjusted
Slide 18: Fiscal Year 2023 ADEPS Bridge
18 FISCAL YEAR 2023 ADEPS BRIDGE ADEPS BRIDGE FROM FY22 TO FY23 FY22 ADEPS $4.21 5 – 9% Revenue Growth ~$0.28 – $0.48 Mid-to-High 10% Adjusted EBITDA Margin ~$(0.20) – $(0.10) FY23 Operational ADEPS $4.29 – $4.59 Depreciation and Amortization1 ~$(0.02) Interest Expense2 ~$(0.10) Income Tax Expense3
Slide 19: FY2023 – FY2025 Investment Thesis
FY2023 – FY2025 INVESTMENT THESIS
Slide 20: Investment Thesis: FY2025 Goals
INVESTMENT THESIS EXCEPTIONAL SHAREHOLDER VALU Y2 E CREATION a~FY2025 GOALS ADJUSTED EBITDA tisintne GROWTH TO $1.2—1.3B _ faial Deployment Organic Strategic Strong Mid 10% $3.5—4.5B Revenue @ Acquisitions & @ Adjusted EBITDA - 5-8% Investments Margin :
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 (Unaudited)
23 NON-GAAP FINANCIAL INFORMATION (Unaudited) (a) Represents costs associated with the acquisition and divestiture efforts of the Company related to transactions for which the Company has entered into a letter of intent to either acquire a controlling financial interest in the target entity or dives
Slide 24: Financial Results – Key Drivers
24 FINANCIAL RESULTS – KEY DRIVERS First Quarter Fiscal 2023 – Below is a summary of the key factors driving results for the fiscal 2023 first quarter ended June 30, 2022 as compared to the prior year period: • Revenue increased 13.1% to $2.2 billion and Revenue, Excluding Billable Expenses increase
Slide 25: Booz Allen Investor & Media Relations Contacts
BOOZ ALLEN INVESTOR & MEDIA RELATIONS CONTACTS 25 • Website: investors.boozallen.com • Contact Information: - Investor Relations Nathan P Rutledge Director & Head of Investor Relations 202-440-3943 Rutledge_Nathan@BAH.com - Media Jessica Klenk Director, Media Relations 703-377-4296 Klenk_Jessica@bah
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