#1Booz Allen Hamilton® Investor Presentation Deck February 2024 CONSULTING | ANALYTICS | DIGITAL SOLUTIONS | ENGINEERING | CYBER#2DISCLAIMER 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 information concerning Booz Allen's preliminary financial results, financial outlook and guidance, including forecasted revenue, Adjusted EBITDA, Diluted EPS, Adjusted Diluted EPS, future quarterly dividends, and future improvements in operating margins, as well as any other statement that does not directly relate to any historical or current fact. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "could," "should," "forecasts," "expects," "intends," "plans," "anticipates," "projects," "outlook," "believes," "estimates," "predicts," "potential," "continue," "preliminary," or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. These forward-looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in or implied by these forward-looking statements, including those factors discussed in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, which can be found at the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Note Regarding Non-GAAP Financial Data Information Booz Allen discloses Revenue, Excluding Billable Expenses, Organic Revenue, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Free Cash Flow Conversion, which are not recognized measurements under accounting principles generally accepted in the United States, or GAAP, and when analyzing Booz Allen's performance or liquidity, as applicable, investors should (i) evaluate each adjustment in our reconciliation of revenue to Revenue, Excluding Billable Expenses, and Organic Revenue, operating income to Adjusted Operating Income, net income attributable to common stockholders to Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses, Adjusted Net Income and Adjusted Diluted EPS, and net cash used in operating activities to Free Cash Flow and Free Cash Flow Conversion, and the explanatory footnotes regarding those adjustments, each as defined under GAAP, (ii) use Revenue, Excluding Billable Expenses, Organic Revenue, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA Margin on Revenue Excluding Billable Expenses, Adjusted Net Income, and Adjusted Diluted EPS in addition to, and not as an alternative to, revenue, operating income, net income attributable to common stockholders or diluted EPS as measures of operating results, each as defined under GAAP, and (iii) use Free Cash Flow, and Free Cash Flow Conversion, in addition to, and not as an alternative to, net cash used in operating activities as a measure of liquidity, each as defined under GAAP. The Appendix includes a reconciliation of Revenue, Excluding Billable Expenses, Organic Revenue, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Free Cash Flow Conversion, to the most directly comparable financial measure calculated and presented in accordance with GAAP. Booz Allen presents these supplemental performance measures because it believes that these measures provide investors and securities analysts with important supplemental information with which to evaluate Booz Allen's performance, long term earnings potential, or liquidity, as applicable, and to enable them to assess Booz Allen's performance on the same basis as management. These supplemental performance and liquidity measurements may vary from and may not be comparable to similarly titled measures by other companies in Booz Allen's industry. With respect to our expectations under "Financial Outlook", reconciliation of Adjusted Diluted EPS guidance, Adjusted EBITDA, and Adjusted EBITDA Margin on Revenue to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to our inability to predict our stock price, equity grants and dividend declarations with respect to Adjusted Diluted EPS, and our net income, net interest and other expenses with respect to Adjusted EBITDA and Adjusted EBITDA Margin on Revenue, during the course of fiscal 2024. With respect to Adjusted Diluted EPS guidance, projecting future stock price, equity grants and dividends to be declared would be necessary to accurately calculate the difference between Adjusted Diluted EPS and GAAP EPS as a result of the effects of the two-class method and related possible dilution used in the calculation of EPS. Consequently, any attempt to disclose such reconciliation would imply a degree of precision that could be confusing or misleading to investors. We expect the variability of the above charges to have an unpredictable, and potentially significant, impact on our future GAAP financial results. For the same reason, a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin on Revenue guidance for fiscal 2024 and 2025 and of Adjusted EBITDA guidance through fiscal 2025 to the closest corresponding GAAP measures are not available without unreasonable efforts on a forward-looking basis due to our inability to predict specific quantifications of the amounts that would be required to reconcile such measures. Accordingly, Booz Allen is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations. 2#3COMPANY HISTORY OUR HERITAGE IS AT THE CORE OF EVERYTHING WE DO Booz Allen founded in 1914 by Edwin Booz in Chicago Spun off commercial consulting business; Carlyle became majority shareholder Launched Vision 2020 Strategy-transforming the company from a consulting firm to leading solutions provider Acquired Aquilent, Inc., a digital services business Acquired EverWatch Corporation Divested MENA management consulting business and Managed Threat Services (MTS) business Awarded $1.5B eMAPS2 contract-single largest TO in Company's history 1914 1940 2008 2010 2013 2016 2017 2021 2022 2023 Hired to help U.S. Navy prepare for WWII Initial Public Offering Acquired Defense Systems Engineering & Support Carlyle completed ownership exit Acquired Liberty IT Solutions Awarded $1.1B BID contract by the VA Acquired Tracepoint Holdings Launched VOLT- new firmwide growth strategy Awarded $1.9B Thunderdome contract With over 100 years of industry leadership, Booz Allen is one of the most respected names in government contracting 3#4WHY INVEST IN BOOZ ALLEN BOOZ ALLEN HAS A 100+ YEAR HISTORY AS AN INDUSTRY LEADER History of Driving Industry Leading Organic Growth Strong Balance Sheet Driven by Robust Cash Generation Prudent Capital Deployment Strategy Strategic Organic Revenue Growth and earnings growth Growing backlog, supported by a robust pipeline and sustained win rates Strong level of operating cash generation Low leverage and our investment grade rating provide flexibility to pursue future growth opportunities Growing pipeline of strategic M&A opportunities Consistent shareholder returns through sustained dividend growth and opportunistic share repurchases Leveraging Innovations to Deliver Differentiated Solutions Relentless Focus on our Clients' Core Missions Operating in Large Addressable Markets First-mover advantage; proven industry leader with transformative capabilities (Al, cyber, 5G) Continued investment in new capabilities and solutions 100+ year legacy as a trusted partner to our clients Single P&L enables operational agility to react quickly to evolving client needs Aligned with critical modernization efforts across the federal government Operating in fundamentally strong core markets at the intersection of mission and technology 4#5LEADING FROM THE TOP OUR PURPOSE, AS A FIRM, IS TO EMPOWER PEOPLE TO CHANGE THE WORLD Horacio D. Rozanski President and Chief Executive Officer Matthew Calderone Chief Financial Officer Kristine Martin Anderson Chief Operating Officer Richard Crowe President Civil Sector Judi Dotson President Global Defense Sector Nancy Laben Chief Legal Officer Susan L. Penfield Chief Technology Officer Thomas Pfeifer President National Security Sector Elizabeth M. Thompson Chief People Officer CREDENTIALS² DIVERSITY MEASURES² 33,800 employees ~1,100 LOCATIONS IN 20+ COUNTRIES 36% of global workforce identified as female, including 37% of senior management 34% of U.S. workforce identified as people of color, including 20% of senior management 31% of new employee hires globally identified as female and 40% of new employee hires in the U.S. identified as people of color 32% of employee departures globally identified as female and 36% of employee departures in the U.S. identified as people of color 28% are Veterans 65% hold security clearances 87% hold bachelor's degrees 40% hold master's degrees 3% hold doctoral degrees (1) As reported in Booz Allen's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023. Numbers are rounded. (2) As reported in Booz Allen's Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Numbers are rounded, and percentages are based on voluntary self-reporting. 5#6VOLT: OUR GROWTH STRATEGY WE WILL OPERATE WITH INCREASED SPEED, AGILITY AND SCALE IN A RAPIDLY CHANGING, HIGHLY COMPETITIVE AND INCREASINGLY TECHNICAL ENVIRONMENT BUILDING BLOCKS OF VOLT ACHIEVED BY VELOCITY: GET THERE FIRST Leverage our mission knowledge to get to the future at speed and scale Doubling-down on innovation Using strategic M&A and partnerships to build market positions Making decisions closer to the needs of clients LEADERSHIP: TRANSFORM WITH CONVICTION Redefine mission leadership to stand apart in this new era Identifying client needs ripe for hyper- growth Scaling businesses at the nexus of mission and technology TECHNOLOGY: DIFFERENTIATE TO WIN Put technology at the heart of the client mission to define the next generation of impact Using mission insights to develop solutions Identifying, building and scaling next generation technology to transform mission 6#7TECHNICAL EXPERIENCE GROUPS (TXGs) A MULTI-YEAR JOURNEY TO BUILD RICH, SELF-SUSTAINING TECHNICAL TALENT COMMUNITIES ACROSS BOOZ ALLEN TXGS are designed to build technical affiliation and skills, generate opportunities for career growth, and advance our technical capabilities and solutions around eight functional areas that are important to the Company's growth. ARTIFICIAL INTELLIGENCE CYBER DATA SCIENCE & DATA ENGINEERING EXPERIENCE & IMMERSIVE PLATFORM & INFRASTRUCTURE SOFTWARE ENGINEERING SYSTEMS & DIGITAL ENGINEERING of (1) For more information on our technical communities, please refer to our Form 10-K for the fiscal year ended March 31, 2023. ☑ TECH STRATEGY & PRODUCT MANAGEMENT 7#8BROAD CUSTOMER BASE WE SERVE A BROAD CUSTOMER BASE THAT SPANS ACROSS THE U.S. GOVERNMENT AND COMMERCIAL MARKETS DEFENSE, 45% + Aerospace: Air Force, Space Force, NASA + Army + Joint Combatant Commands + Navy/Marine Corps INTELLIGENCE, 18% + U.S. Intelligence Agencies: National Security Agency, National Geospatial-Intelligence Agency, National Reconnaissance Office + Military Intelligence Agencies: Defense Intelligence Agency, Service Intelligence Centers, Intelligence Surveillance Reconnaissance Units Broad Customer Base (1) CIVIL, 34% + Homeland Security + Health & Human Services + Justice + Treasury + Veterans Affairs GLOBAL COMMERCIAL, 3% + Commercial: Financial Services, Health and Life Sciences, Energy, and Technology + International (1) All percentages of revenue are approximate; exact percentages of revenue are reported in our Form 10-K for the fiscal year ended March 31, 2023. 80#9STRONG FINANCIAL RETURNS WE HAVE A PROVEN TRACK RECORD OF STRONG FINANCIAL PERFORMANCE Delivering Industry-Leading Organic Growth ($ in billions) $6.0 8.5% CAGR $9.1 FY18 FY23 Organic Revenue Growth (1)(2) Strong Cash Flow Generation ($ in millions) (1) (2) (3) (4) $718.7 $736.5 $602.8 $551.4 $499.6 117% 116% Sustained Adjusted EBITDA & Margin Expansion ($ in millions) 11.7% CAGR ($) +150 bps (%) 11.0% 9.5% $584 FY18 Adjusted EBITDA $1,014 FY23 (3)(4) Adjusted EBITDA Margin (3) (4) Significant Capital Deployment ($ in millions)(3)(5) $1,494 865.5 $905 $571 445.3 103% 94% $364 72.2 $333 87% 419.3 318.1 224.0 250.0 186.6 114.2 146.6 181.1 209.1 235.7 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Operating Cash Flow (3)(4) Free Cash Flow Conversion (3) (4) Quarterly Dividends Share Repurchases M&A Organic revenue of $6.0 billion as of March 31, 2018 is calculated as $6.2 billion of consolidated revenue less revenue from acquisitions of approximately $140 million. Organic revenue of $9.1 billion as of March 31, 2023 is calculated as $9.3 billion of consolidated revenue less revenue from acquisitions of approximately $185 million. As reported in our Forms 10-K for fiscal years ended March 31, 2019, 2020, 2021, 2022 and 2023; totals may not sum due to rounding. A reconciliation of non-GAAP financial measures can be found in the Appendix. 6#10CAPITAL DEPLOYMENT: FY23 IN REVIEW OUR CAPITAL DEPLOYMENT PRIORITIES FOLLOW A DISCIPLINED, OPPORTUNISTIC APPROACH THAT MAXIMIZES NEAR- AND LONG-TERM SHAREHOLDER VALUE In FY23, we deployed ~$905M through a mix of quarterly dividends, strategic M&A, and share repurchases Quarterly Dividends Strategic Transactions Share Repurchases Capital Expenditures ~$236M in quarterly dividends 10th consecutive fiscal year of a double- digit increase in our quarterly dividend ~39% historical dividend payout ratio (¹) Sustained strong annual dividend growth since 2013 Acquisition of EverWatch for ~$440M Strategic investments in leading-edge technical solutions, like Hidden Level and Reveal Technologies, to accelerate mission delivery Strategic investments to fuel growth ~$224M in share repurchases Opportunistically look for periods where shares trade below market value; balance with other capital needs Opportunistic share buybacks, based on changing economic conditions and market performance Focused investments in IP/IC to help deliver differentiated mission solutions Ongoing investments that support the shifting needs of the business, including modernizing secured facilities and supporting a hybrid work model Driving growth through strategic investments in our infrastructure We remain committed to a balanced capital allocation strategy to maximize long-term shareholder value (1) As measured over a five-year period. 10#11OUTPERFORMING THE MARKET DRIVING LONG-TERM SHAREHOLDER VALUE THROUGH STRONG FINANCIAL PERFORMANCE AND PRUDENT CAPITAL MANAGEMENT Total Shareholder Returns vs. Core Peers One-, Three- and Five-Year Periods (1 (1) Total Shareholder Returns vs. Broader Indexes Five-Year Period (1) 8% 1-Year 1% 42% 3-Year 32% 5-Year 66% Booz Allen Core Peers (1) As of March 31, 2023. Core peers include: CACI, LDOS, and SAIC. 160% 160% 68% 67% Booz Allen Russell 1000 Index S&P Software and Services Select Industry Index 11#12STRONG BACKLOG AND CONTRACT-LEVEL PERFORMANCE DEMONSTRATES THE STRENGTH OF OUR VALUE PROPOSITION AND CORE CAPABILITIES Historical Backlog" ($ in millions) (1)(2) 31,202 29,247 24,032 20,729 17,064 19,321 15,612 14,436 12,796 12,198 9,925 9,519 3,687 4,518 6,086 3,436 3,415 3,510 3,710 4,619 FY19 FY20 FY21 FY22 FY23 Funded Unfunded Priced Options Historical Book-to-Bill LTM Book-to-Bill Ratios 1.49 FY19 1.19 FY20 1.42 1.36 FY21 FY22 1.18 FY23 (1) As reported in our Forms 10-K for the fiscal years ended March 31, 2019, 2020, 2021, 2022 and 2023. (2) Backlog presented as of March 31, 2023; includes backlog acquired from acquisitions made during fiscal 2023, which was approximately $282 million as of March 31, 2023. 12#13FY24 PIPELINE AND DEMAND DYNAMICS QUALIFIED PIPELINE OF $14B+(1)(2) Diverse portfolio with limited concentration risk Strong demand environment aligned to innovation agenda PROPOSALS IN PROCESS OF $2B+ ~66% win rate on new work ~88% on recompetes (3) SUBMITTED PROPOSALS OF $8.2B+(2) Backlog of $34B+ ~15% of which is funded (¹) Ample demand and strong growth prospects support momentum across the business. (1) Qualified pipeline for FY24 and backlog as of December 31, 2023. བསེ་ཏེ (2) (3) Includes awards that were under protest as of December 31, 2023. Rates disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023. 13#142023 ESG HIGHLIGHTS AT A GLANCE ENVIRONMENTAL, SOCIAL, GOVERNANCE IMPACTS SUPPORT LONG-TERM RESILIENCE (1) ENVIRONMENTAL. SOCIAL, GOVERNANCE HIGHLIGHTS Employee Giving Increased employee giving by 5% year over year to $1.45M. Career Mobility 18% of our open positions were filled by current employees. Al Ready Developed an Al Ready Training Program, a multitiered learning experience for all employees that leverages the firm's badging framework. Leadership Diversity² 63% (7 of 11) of our Board of Directors is gender and/or racially diverse, and 36.7% of senior leadership is female. Continuous Learning 25% of employees participated in our FlexEd tuition benefit program; participation is correlated with higher retention rates and annual employee experience survey scores. Supplier Diversity Approximately 40% of our supplier spend was with businesses owned by members of historically underrepresented groups. Employee Belonging Nearly a quarter of our employees are members of at least one Business Resource Group, and more than 46% of Booz Allen employees belong to a Technical Experience Group. Climate Action Committed to science-based targets that align with 1.5°C ambition and net-zero emissions by 2050. (1) Unless otherwise specified, data points noted on this slide are as of March 31, 2023. (2) As reported in the Company's annual proxy statement filed with the SEC on June 15, 2023. 14#15THIRD QUARTER FISCAL 2024 FINANCIAL RESULTS & FISCAL 2024 Outlook#16KEY FINANCIAL RESULTS THIRD QUARTER FISCAL YEAR 2024 RESULTS Revenue (1) THIRD QUARTER FISCAL YEAR-TO-DATE (12/31/23) (1) $2.6 billion +12.9% $7.9 billion +15.6% Revenue, Excluding Billable Expenses $1.8 billion +13.0% $5.5 billion +14.7% Net Income $146 million +374.6% $478 million +40.7% Adjusted EBITDA² $291 million +19.1% $888 million +13.5% Adjusted EBITDA Margin on Revenue² 11.3% +5.6% 11.3% (1.7)% Adjusted Net Income $184 million +29.4% $547 million +16.0% Diluted EPS $1.11 +382.6% $3.62 +42.5% Adjusted Diluted EPS $1.41 +31.8% $4.17 +17.5% Net Cash Provided by Operating Activities $234 million 68.8% $115 million (68.5)% (1) Comparisons are to prior fiscal year period. (2) Reconciliations of Adjusted EBITDA and Adjusted EBITDA Margin on Revenue can be found on Slide 22. Net Income attributable to common stockholders was $145.6 million and $477.8 million for the three and nine months ended December 31, 2023, respectively. Net income margin attributable to common stockholders was 5.7% and 6.0% for the three and nine months ended December 31, 2023, respectively. 16#17FINANCIAL OUTLOOK FULL YEAR FISCAL 2024 GUIDANCE (1) OPERATING PERFORMANCE Revenue Growth Adjusted EBITDA Adjusted EBITDA Margin on Revenue Updated Fiscal Year 2024 Guidance 14.0% 15.0% $1,155 $1,175 million ~11% $5.25 - $5.40 Adjusted Diluted EPS Updated Net Cash Provided by Operating Activities (2) $200 $275 million Prior Fiscal Year 2024 Guidance 11.0% 14.0% $1,115 $1,145 million High 10% to 11% $4.95 - $5.10 $160 $260 million KEY ASSUMPTIONS Inorganic Revenue Contributions Effective Tax Rate Average Diluted Shares Outstanding Interest Expense Depreciation and Amortization Cash Taxes Related to Section 174 Capital Expenditures Updated Fiscal Year 2024 Assumptions ~1.0% 22% -23% 129 131 million $170 - $180 million ~$165 million ~$125 million $75 $95 million Prior Fiscal Year 2024 Assumptions ~1.0% 23%-25% 129 131 million $170 $180 million ~$165 million ~$100 million $75 $95 million (1) Reconciliations omitted in reliance on Item 10(e)(1)(i)(B) of Regulation S-K. See "Disclaimer." (2) Reflects estimated net impact of settlement with the Department of Justice. 17#18FY2023 - FY2025 INVESTMENT THESIS#19INVESTMENT THESIS EXCEPTIONAL SHAREHOLDER VALUE CREATION FY2023-FY2025 GOALS Competitive ADJUSTED EBITDA Disciplined Edge at the GROWTH TO $1.2-1.3B Mission- Capital Deployment Innovation Organic + Revenue Strategic Acquisitions & Strong Mid 10% + Intersection 5-8% Investments Adjusted EBITDA Margin $2.0-3.5B#20APPENDIX#21NON-GAAP FINANCIAL INFORMATION . • "Revenue, Excluding Billable Expenses" represents revenue less billable expenses. Booz Allen uses 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 indicative of the level of productivity of its client staff headcount and its overall direct labor, which management believes provides useful information to its investors about its core operations. "Adjusted Operating Income" represents operating income before the change in provision for claimed indirect costs, acquisition and divestiture costs, financing transaction costs, significant acquisition amortization, and the reserve associated with the U.S. Department of Justice investigation disclosed in Note 15 to the Condensed Consolidated Financial Statements in the Company's Form 10-Q for the quarter ended December 31, 2023. Booz Allen prepares Adjusted Operating Income to eliminate the impact of items it does not consider indicative of ongoing operating performance due to their inherent unusual, extraordinary or non- recurring nature or because they result from an event of a similar nature. "Adjusted EBITDA" represents net income (loss) attributable to common stockholders before income taxes, net interest and other expense and depreciation and amortization and before certain other items, including the change in provision for claimed indirect costs, acquisition and divestiture costs, financing transaction costs, and the reserve associated with the U.S. Department of Justice investigation disclosed in Note 15 to the Condensed Consolidated Financial Statements in the Company's Form 10-Q for the quarter ended December 31, 2023, and restructuring costs. "Adjusted EBITDA Margin on Revenue" is calculated as Adjusted EBITDA divided by revenue. "Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses" is calculated as Adjusted EBITDA divided by Revenue, Excluding Billable Expenses. Booz Allen prepares Adjusted EBITDA, Adjusted EBITDA Margin on Revenue, and Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses to eliminate the impact of items it does not consider indicative of ongoing operating performance due to their inherent unusual, extraordinary or non-recurring nature or because they result from an event of a similar nature. "Adjusted Net Income" represents net income attributable to common stockholders before: (i) the change in provision for claimed indirect costs, (ii) acquisition and divestiture costs, (iii) financing transaction costs, (iv) significant acquisition amortization, (v) the reserve associated with the U.S. Department of Justice investigation disclosed in Note 15 to the Condensed Consolidated Financial Statements in the Company's Form 10-Q for the quarter ended December 31, 2023, (vi) gains associated with divestitures or deconsolidation, and (vii) amortization and write-off of debt issuance costs and debt discount, in each case net of the tax effect where appropriate calculated using an assumed effective tax rate. Booz Allen prepares Adjusted Net Income to eliminate the impact of items, net of tax, it does not consider indicative of ongoing operating performance due to their inherent unusual, extraordinary or non-recurring nature or because they result from an event of a similar nature. Booz Allen views Adjusted Net Income as an important indicator of performance consistent with the manner in which management measures and forecasts the Company's performance and the way in which management is incentivized to perform. "Adjusted Diluted EPS" represents diluted EPS calculated using Adjusted Net Income as opposed to net income. Additionally, Adjusted Diluted EPS does not contemplate any adjustments to net income as required under the two-class method as disclosed in the footnotes to the consolidated financial statements of the Company's Form 10-K for the fiscal year ended March 31, 2023. "Free Cash Flow" represents the net cash generated from operating activities less the impact of purchases of property, equipment and software. "Free Cash Flow Conversion" is calculated as Free Cash Flow divided by Adjusted Net Income. "Organic Revenue" and "Organic Revenue Growth" represent growth in consolidated revenue adjusted for revenue from acquisitions and divestitures. 21#22NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (In thousands, except share and per share data) Revenue, Excluding Billable Expenses Revenue Less: Billable expenses Revenue, Excluding Billable Expenses * Adjusted Operating Income 2023 2022 2023 2022 $ 2,569,801 $ $ 799,896 1,769,905 $ 2,277,074 $ 710,526 1,566,548 $ 7,890,569 $ 2,436,988 5,453,581 $ 6,825,650 2,069,733 4,755,917 Operating Income $ 247,558 $ 58,640 $ Change in provision for claimed indirect costs (a) 748,965 $ (18,345) 489,756 Acquisition and divestiture costs (b) 1,952 19,096 5,480 40,121 Financing transaction costs (c) 820 6,888 Significant acquisition amortization (d) 13,597 14,101 40,301 36,275 Legal matter reserve (e) 124,000 27,453 124,000 Adjusted Operating Income $ 263,107 $ 215,837 $ 804,674 $ 697,040 EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin on Revenue & Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses Net income attributable to common stockholders $ 145,644 $ 30,997 $ 477,750 $ 340,213 Income tax expense 61,740 10,539 156,291 103,286 Interest and other, net (f) Depreciation and amortization EBITDA Change in provision for claimed indirect costs (a) Acquisition and divestiture costs (b) Financing transaction costs (c) Legal matter reserve (e) Adjusted EBITDA Net income margin attributable to common stockholders 40,174 17,412 114,924 46,907 41,113 42,046 123,867 121,200 288,671 100,994 872,832 611,606 (18,345) 1,952 19,096 5,480 40,121 820 6,888 124,000 27,453 124,000 $ 290,623 $ 244,090 $ 888,240 $ 782,615 5.7 % Adjusted EBITDA Margin on Revenue Adjusted EBITDA Margin on Revenue, Excluding Billable Expenses 11.3 % 1.4 % 10.7 % 6.1 % 5.0% 11.3 % 11.5 % 16.4 % 15.6 % 16.3 % 16.5 % * Revenue, Excluding Billable Expenses includes $18.3 million of revenue resulting from the reduction to our provision for claimed indirect costs as noted on slide 24. 22#23NON-GAAP FINANCIAL INFORMATION (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, Adjusted Net Income Net income attributable to common stockholders $ 145,644 $ 30,997 $ 477,750 $ 340,213 Change in provision for claimed indirect costs (a) (18,345) Acquisition and divestiture costs (b) 1,952 19,096 5,480 40,121 Financing transaction costs (c) Significant acquisition amortization (d) Legal matter reserve (e) 820 6,888 13,597 14,101 40,301 36,275 124,000 27,453 124,000 Gains associated with divestitures or deconsolidation (g) (13,472) (44,632) Amortization or write-off of debt issuance costs and debt discount 1,062 780 2,950 5,780 Adjustments for tax effect (h) 22,048 (33,020) 10,094 (37,518) Adjusted Net Income Adjusted Diluted Earnings Per Share $ 184,303 $ 142,482 $ 546,503 $ 471,127 Weighted-average number of diluted shares outstanding $ 130,489,050 $ 132,759,877 $ Diluted earnings per share Adjusted Net Income Per Diluted Share (i) $ 1.11 $ 0.23 $ 131,058,754 $ 3.62 $ 132,831,569 2.54 $ 1.41 $ 1.07 $ 4.17 $ 3.55 Free Cash Flow Net cash provided by operating activities 233,985 138,582 115,068 365,674 Less: Purchases of property, equipment and software (23,096) (21,664) (50,532) (51,398) Free Cash Flow $ 210,889 $ 116,918 $ 64,536 $ 314,276 Operating cash flow conversion 161 % 447 % 24 % 107 % Free cash flow conversion 114 % 82 % 12% 67 % 23#24NON-GAAP FINANCIAL INFORMATION (Unaudited) (a) Represents the reduction to our provision for claimed indirect costs recorded during the second quarter of fiscal 2024, which resulted in a corresponding increase to revenue, as a result of the Defense Contract Audit Agency's findings related to its audit of our claimed indirect costs for fiscal 2022. See Note 15, "Commitments and Contingencies," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further information. (b) Represents costs associated with the acquisition efforts of the Company related to transactions for which the Company has entered into a letter of intent to acquire a controlling financial interest in the target entity, as well as the divestiture costs incurred in divesting a portion of our business. Acquisition and divestiture costs primarily include costs associated with (i) buy-side and sell-side due diligence activities, (ii) compensation expenses associated with employee retention, and (iii) legal and advisory fees, primarily associated with the acquisitions of Liberty IT Solutions, LLC ("Liberty") and Tracepoint Holdings, LLC ("Tracepoint") in fiscal 2022, and the acquisition of EverWatch Corp. ("EverWatch") and the divestitures of our management consulting business serving the Middle East and North Africa ("MENA") and our Managed Threat Services business ("MTS") in fiscal 2023. See Note 5, "Acquisition, Goodwill and Intangible Assets," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further information. (c) Reflects expenses associated with debt financing activities incurred during the second quarters of fiscal 2024 and 2023. (d) Amortization expense associated with acquired intangibles from significant acquisitions. Significant acquisitions include acquisitions which the Company considers to be beyond the scope of our normal operations. Significant acquisition amortization includes amortization expense associated with the acquisition of Liberty in the second quarter of fiscal 2022 and EverWatch in the third quarter of fiscal 2023. (e) Reserve associated with the U.S. Department of Justice's investigation of the Company. See Note 15, "Commitments and Contingencies," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further information. (f) Reflects the combination of Interest expense and Other income, net from the condensed consolidated statement of operations. (g) Represents the gain recognized on the divestitures of the Company's MENA business in the second quarter of fiscal 2023, its MTS business in the third quarter of fiscal 2023, and the gain on the deconsolidation of an artificial intelligence software platform business in the third quarter of fiscal 2023. (h) Reflects the tax effect of adjustments at an assumed effective tax rate of 26%, which approximates the blended federal and state tax rates, and consistently excludes the impact of other tax credits and incentive benefits realized. The tax effect of certain discrete items is calculated specifically and may vary from the general 26% rate. The tax effect also includes the indirect effects of uncertainty around the application of Section 174 of the Tax Cuts and Jobs Act of 2017 ($26.0 million and $22.0 million for the three and nine months ended December 31, 2023, respectively). See Note 10, "Income Taxes," to the condensed consolidated financial statements in the Company's Form 10-Q for the quarter ended December 31, 2023 for further information. (i) Excludes adjustments of approximately $1.2 million and $3.9 million of net earnings for the three and nine months ended December 31, 2023, respectively, and approximately $0.5 million and $2.6 million of net earnings for the three and nine months ended December 31, 2022, respectively, associated with the application of the two-class method for computing diluted earnings per share. 24#25FINANCIAL RESULTS – KEY DRIVERS - Third Quarter Fiscal 2024 - Below is a summary of the key factors driving results for the fiscal 2024 third quarter ended December 31, 2023 as compared to the prior year period: . • Revenue increased 12.9% to $2.6 billion and Revenue, Excluding Billable Expenses increased 13.0% to $1.8 billion. Revenue growth was primarily driven by strong demand for our services and solutions as well as continued headcount growth. Operating income increased 322.2% to $247.6 million and Adjusted Operating Income increased 21.9% to $263.1 million. The increase was primarily driven by the same drivers benefiting revenue growth as well as strong contract-level performance coupled with ongoing cost management efforts. In addition, fiscal 2023 operating income was negatively impacted by a $124.0 million reserve associated with the U.S. Department of Justice's investigation of the Company recorded in the third quarter. The increase in Adjusted Operating Income was driven by the same factors impacting operating income with the exception of the aforementioned legal matter reserve, which did not impact Adjusted Operating Income. Net income increased 374.6% to $145.6 million and net income attributable to common stockholders increased 369.9% to $145.6 million. These changes were primarily driven by the same factors as operating income, partially offset by a net gain in the prior year of $8.9 million from the de-consolidation of an artificial intelligence software platform business, and a $4.6 million pre-tax gain associated with the divestiture of the Company's Managed Threat Services business. In addition, an increase in the provision for income taxes associated with the reversal of an uncertain tax position related to Section 174 of the Tax Cuts and Jobs Act of 2017 had a negative impact on net income. Adjusted Net Income increased 29.4% to $184.3 million. The change in Adjusted Net Income was primarily driven by the same factors as Adjusted Operating Income, as well as higher interest expense. EBITDA increased 185.8% to $288.7 million and Adjusted EBITDA increased 19.1% to $290.6 million. These changes were due to the same factors as operating income and Adjusted Operating Income, respectively. Diluted EPS increased to $1.11 from $0.23 and Adjusted Diluted EPS increased to $1.41 from $1.07. The changes were primarily driven by the same factors as net income and Adjusted Net Income, respectively, partially offset by a lower share count in the third quarter of fiscal 2024. Net cash used in operating activities was $234.0 million for the quarter ended December 31, 2023, as compared to $138.6 million in the prior year. Free Cash Flow was $210.9 million for the quarter ended December 31, 2023, as compared to $116.9 million in the prior year. Operating cash was aided by strong collection performance and overall revenue growth. 25#26BOOZ ALLEN INVESTOR & MEDIA RELATIONS CONTACTS . Website: investors.boozallen.com Contact Information: Investor Relations Nathan P. Rutledge Director & Head of Investor Relations 202-440-3943 [email protected] Media Jessica Klenk Director, Media Relations 703-377-4296 [email protected] 26