UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________
Form 8-K
_________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 11, 2023
_________________________________________________________
(Exact name of registrant as specified in its charter)
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| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(703 ) 676-4300
Registrant’s telephone number, including area code
Not Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
On April 11, 2023, Science Applications International Corporation (“SAIC”) will host an Investor Day (the “Presentation”). The slides attached as Exhibit 99.1 to this Current Report on Form 8-K are to be displayed at the Presentation and are incorporated herein by reference. The slides will also be available on the SAIC website at www.investors.saic.com. No information contained on or accessible through such website shall be deemed to be part of or incorporated by reference into this report other than the Exhibit 99.1 identified herein.
The information contained in this Item 7.01 and Exhibit 99.1 is being furnished, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under Section 18. Furthermore, the information contained in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into SAIC’s filings under the Securities Act of 1933, as amended, or the Exchange Act.
Cautionary Note on Forward-Looking Statements
For more information regarding the forward-looking statements included in this report (including Exhibit 99.1 attached hereto), see the slide titled "Forward-Looking Statements" included in Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description of Exhibit | |||||||
2023 Investor Day Presentation | ||||||||
| 104 | Cover Page Interactive Data File, formatted as Inline XBRL | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 11, 2023
Science Applications International Corporation
| By: | /s/ Hilary L. Hageman | |||||||
| Hilary L. Hageman | ||||||||
| Executive Vice President, General Counsel and Corporate Secretary | ||||||||
April 11, 2023
Introduction Joseph DeNardi Vice President, Investor Relations and Strategic Ventures
3SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions identify forward-looking statements in this presentation. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are subject to numerous assumptions, risks, and uncertainties, and other factors, many of which are outside the control of SAIC. These factors could cause actual results to differ materially from such forward-looking statements. Risks, uncertainties and assumptions that could cause SAIC’s actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those described in the “Risk Factors” section of SAIC’s most recent Form 10-K filed with the Securities and Exchange Commission (“SEC”) and updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. The reports referenced above are available on SAIC’s website at www.saic.com or on the SEC’s website at www.sec.gov. No assurance can be given that the results of events described in forward-looking statements will be achieved and actual results may differ materially from these statements. SAIC disclaims any obligation to update any forward-looking statements provided in this presentation to reflect subsequent events, actual results, or changes in SAIC’s expectations. All information in these slides are as of April 11, 2023. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. Forward-Looking Statements INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A This presentation includes non-GAAP financial measures. Such non-GAAP measures should be considered in addition to, not a substitute for, the corresponding GAAP financial measure. A reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP financial measure is included in SAIC's most recent earnings release attached as Exhibit 99.1 to the Current Report on Form 8-K filed with the SEC on April 3, 2023.
4SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Investor Day Agenda 9:00 – 10:00 Breakfast and Registration 9:30 – 10:45 Solutions Demonstrations 10:45 – 10:50 Introduction Joseph DeNardi, Investor Relations 10:50 – 11:20 Strategy and Market Outlook Nazzic Keene, Chief Executive Officer 11:20 – 11:40 11:40 – 12:00 Sector Overview and Outlook Bob Genter, Defense & Civilian Sector President Michael LaRouche, National Security & Space Sector President 12:00 – 12:10 Break 12:10 – 12:40 Financial Update and Outlook Prabu Natarajan, Chief Financial Officer 12:40 – 1:15 Q&A 1:15 – 2:00 Lunch
Strategy and Market Outlook Nazzic Keene Chief Executive Officer
6SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Executive Leadership Team Denotes 2023 Investor Day presenters Nazzic Keene Chief Executive Officer Maria Bishop Chief of Staff Mark Escobar Chief of Business Operations Hilary Hageman General Counsel Michelle O’Hara Chief Human Resources Officer Bob Genter President, Defense & Civilian Sector Michael LaRouche President, National Security & Space Sector Prabu Natarajan Chief Financial Officer INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
7SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy SAIC Fiscal Year 2026 Targets REVENUE $7.3B – $7.5B 2% to 4% organic revenue growth CAGR FREE CASH FLOW* $515M ~$11/share EBITDA* $700M – $725M FY26 adj. EBITDA* margin guidance of 9.5%-9.7% GTA (Growth and Technology Accelerants) ~40% of Revenue INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
8SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy SAIC is a premier technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence and mission solutions. We integrate the best components from our own portfolio and our partner ecosystem to deliver innovative solutions that are critical to achieving our customers’ missions. SAIC at a Glance INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A VISION PURPOSE MISSION VALUES
9SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Building a Differentiated Employee Experience and Culture INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Developing Our Leaders to Be the Best in Our Industry Upskilling Our Talent to Build a Sustainable Workforce for the Future Fostering a Culture of Growth and Wellbeing Increasing Diversity Representation in Our Leadership Connecting and Resonating with Our Dispersed Workforce 2 1 3 4 5Flexibility Diversity, Equity & Inclusion Human- Centered Leadership Continuous Learning Purpose & Connection WELL- BEING
10SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Strategy-Focused on Driving Shareholder Value SPIN M&A FOCUSED ON SCALE AND CUSTOMER ACCESS M&A & VENTURES FOCUSED ON SOLUTIONS AND CAPABILITIES INCREASED CAPITAL RETURNS FOR SHAREHOLDERS AND CAPABILITY-FOCUSED M&A June 2022 Board authorizes additional 8 million shares. Total remaining authorization increased to 16% of shares April 2023 Guidance for $350M-$400M of repurchases in FY24 with similar projected levels in FY25 and FY26 2023 - 20252020 - 20222015 - 20192013 INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Expect >$1.3B of Capital Returns to Shareholders by FY26
11SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Broad Alignment with Key Market Trends Cyber Risk Mitigation Digital Transformation Space Superiority D E F E N S E & C I V I L I A N N AT I O N A L S E C U R I T Y & S PAC E Cloud Migration Civilian & Health Army Navy Space AFDODAC Air Force, DoD Commands & Agencies NIC National Intelligence Community AI Enabled Evolution JADC2 INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Investments Have Driven Alignment Across the Portfolio and in Markets with Higher Growth
12SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Large and Growing Addressable Market 41% 21% 38% GFY23 FORECASTED SPENDING ADDRESSABLE TO SAIC $210 BILLION Defense Civilian Intel and Space BY END MARKET 26% 74% GTA Growth and Technology Accelerants Core $0 $500 $1,000 $1,500 $2,000 $2,500 19 62 19 64 19 66 19 68 19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 20 20 22 20 24 20 26 20 28 20 30 20 32 Defense Discretionary Outlays Nondefense Discretionary Outlays BY FOCUS AREA Denotes an economic recession in U.S. HISTORICAL U.S. GOVERNMENT DISCRETIONARY OUTLAYS
13SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy SAIC’s Enterprise Focus Areas GTA strategy enabled by solutions developed within Innovation Factory GTA GROWTH AND TECHNOLOGY ACCELERANTS Secure Cloud Enterprise IT Systems Integration and Delivery CORE IT and Technical Services Engineering Services FY23 REVENUE $1,100M $800M $500M Innovation Enabled By Digital Factory E.I.T. Factory Engineering Factory FY23 REVENUE $2,900M $1,600M Innovation Enabled By Engineering Factory Digital Factory INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
14SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Pipeline Aligned to Drive Higher GTA, Improved Margins Growth and Technology (GTA) Core Business 40% 60% FY23 SUBMITS FY24-26 PIPELINE COMPOSITION (ESTIMATED) We continue to shift near-term activity towards GTA… ...in an effort to capture this higher-margin work 8.4 10.7~11% High 8% GTACore AVG. EBITDA MARGIN* % FOR FY24-26 PIPELINE (ESTIMATED) Core GTA <50% Core >50% GTA INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Good Momentum to Drive GTA ~40% of Revenues by FY26 * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
15SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Market Opening for Platform Agnostic Tech Integrator MARKET FACTORS SAIC STRATEGY Invest to Provide Speed to Value Identify Best Available Technology Offer Modular and Agile SolutionBecome Integrator of Choice for Emerging Tech Rapid Changes in Available Technology Peer Strategy Shift DoD Initiatives to Adopt Commercial Technology Current Conflicts Driving Demand to Upgrade Legacy Systems Increased Demand for TrustedTechnology Integrator Increased Demand for TrustedTechnology Integrator INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
16SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy ADVANCE CULTURE Sustain competitive advantage through a differentiated employee experience and culture that bring out the best in our people ALIGN INCENTIVES Drive further alignment for SAIC executive leadership between incentive pay and long-term performance to instill owner mindset across the company REINVEST TO DRIVE GROWTH Prioritize internal investment to drive sustained growth with improving margin rate COMMIT TO BUSINESS MODEL Invest to remain the trusted and best-in-class technology integrator for our customers while maintaining a capital light business model DRIVE SHAREHOLDER VALUE Focused capital deployment - maximize free cash flow efficiency and allocate excess cash to highest ROI with a bias towards returning capital to shareholders Focus on Long-term Shareholder Value INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
Sector Overview and Outlook Defense & Civilian Bob Genter Sector President
18SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Defense & Civilian Sector Organization Bob Genter Defense & Civilian Ravi Dankanikote Business Development Josh Jackson Army Barbara Graham Navy Mike Mazzella Civilian Vishal Tulsian State, Local, Health & Financials INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
19SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Defense & Civilian Sector Overview $4.0B FY23 Revenue 9.3%* Adj. EBITDA Margin $15B Total Backlog Cost Plus Firm Fixed Price Time & Materials Civilian Army Navy 52% 22% 26% 42% 33% 25% ** Pro-forma for L&SCM sale and FSA JV deconsolidation ~35% GTA as % of Revenue INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure K E Y M E T R I C S * * C O N T R A C T M I X (% of FY23 Revenue) C U S TO M E R S (% of FY23 Revenue) K E Y C A M PA I G N S Apply technology integrator model across the sector Match increasing customer demand for best-available technology with SAIC role as trusted integrator from IT modernization to counter UAS Capitalize on Enterprise IT momentum Leverage past performance quals and technical differentiators to drive continued EIT market share gains Lead multi-cloud future across U.S. Government Continue investments in CloudScend® to widen competitive advantage and provide value across the cloud journey – explore, migrate and operate
20SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Notable Wins Key DifferentiatorsStrategic Themes / Focus USPTO BOSS IDIQ $2B FAA Systems Engineering Technology Innovative Solutions $400M MK48 Heavy Weight Torpedo $1.1B Treasury T-Cloud $1.3B IRS Enterprise Computing Center Services IDIQ $1B Army Corps of Engineers Revolutionary IT Systems (RITS) $1.3B US Marshals Data Layer and Analysis $148M Army S3I (AMCOM) $8.1B Army DIAMNDSS and STORMS $181M and $208M IT modernization, O&M and software development with focus on customers, opportunities and missions needing Cloud, Analytics and Security Platform/SW Integration & Modernization through Sustainment Lead information warfare & enterprise systems transformation with focus on large application modernization Differentiated solutions and managed services to customers delivering value through mutually beneficial business models Excellent program performance and domain specific expertise Leading the multi-cloud future T-Cloud: Treasury’s only multi-cloud program SAIC branded offerings: CloudScend®, Koverse, Tenjin™ provide tech differentiation C-UAS – tech agnostic engineering integration with Koverse at the core World class digital engineering integration eco-system Common platform Managed Services delivery across customers Defense & Civilian Sector Growth Strategy USG logos included to indicate customer set not to indicate DoD or other USG endorsement
Sector Overview and Outlook National Security & Space Michael LaRouche Sector President
22SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy National Security & Space Sector Organization INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Michael LaRouche National Security & Space Sector Bruce Feldman Business Development David Ray Space Vinnie DiFronzo Air Force, DoD Commands & Agencies Bill Edmunds National Intelligence Community
23SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy National Security & Space Sector Overview K E Y M E T R I C S $2.9B FY23 Revenue 8.8%* Adj. EBITDA Margin $9B Total Backlog Cost Plus Firm Fixed Price Time & Materials C O N T R A C T M I X (% of FY23 Revenue) Space Air Force, DoD Agencies & Commands National Intelligence Community C U S TO M E R S (% of FY23 Revenue) 74% 17% 9% 52% 32% 16% K E Y C A M PA I G N S Integrate and modernize space and C2 systems Address expanding space market as platform/sensor agnostic systems integrator leveraging existing space systems engineering market leadership Accelerate C5ISR to achieve JADC2 vision Address JADC2 transformation as digital solution integrator leveraging innovations in secure cloud, multi-level security, and AI/ML to access protected mission data rapidly Innovate outcomes across enterprise and mission IT Shift IT operations to fixed priced solutions while migrating into secure cloud and modernizing with big data AI/ML, zero-trust cyber protection, and automation INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN SVP Bob Genter NATIONAL SECURITY & SPACE SVP Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A ~35% GTA as % of Revenue * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
24SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy National Security & Space Sector Growth Strategy Notable Wins Key Differentiators Customer satisfaction – excellent evaluations and repeat customers Venture partners and technology acquisitions – market differentiation with Orca, Morpheus, and Koverse SAIC branded offerings – innovation solving customer problems: CloudScend®, Tenjin™, and ReadyOne Multiple multi-cloud programs, including DoD’s only zero-trust implementation (USAF Cloud One) Focused digital engineering innovations – virtually integrated project environment for space system integration and MDA’s authoritative modeling and simulation capability Strategic Themes / Focus Advance IT operations across USAF, DoD Commands and Agencies, and IC by adopting commercial performance- based contracting and infusing cloud, AI/ML, zero-trust, and automation Inject technology advancements into USAF and USSF C5ISR operations to mesh sensor and platform protected data into seamless architecture for speed of use/evolution Expand role as space and space C2 system integrator across civil, commercial, defense, and intelligence markets while sustaining position as best- in-class SETA provider DCSA One IT $900M Cloud Integration and Multi-Cloud Mgt $250M USTRANSCOM Managed IT Services $150M DARPA ACO and DIU JADC2 R&D $40M USAF C2 Air Operations Centers $320M ABMS Cloud-based C2 & Digital Infra. $110M Liberty Bell (classified) $670M USSF GPS Recompete $390M INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN SVP Bob Genter NATIONAL SECURITY & SPACE SVP Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A USG logos included to indicate customer set not to indicate DoD or other USG endorsement
Financial Update and Outlook Prabu Natarajan Chief Financial Officer
26SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Top Areas of Focus INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A TALENT DEVELOPMENT Prioritize talent acquisition and diverse skillset development PROMOTE “OWNER” MENTALITY Leverage strong leadership and incentive compensation structure to drive “owner” mentality further down in the organization ROI-DRIVEN CAPITAL DEPLOYMENT Allocate capital based on highest ROI with a bias towards returning cash to shareholders and healthy skepticism of scale/market-access driven M&A DRIVE LONG-TERM PLANNING RIGOR Develop a disciplined multi-year planning process to ensure proper investment decisions and performance assessments CREATE “CULTURE OF CASH COLLECTION” Notable emphasis on program-level cash performance with performance monitoring and plans to drive improvement
27SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy FINANCIAL METRIC FY26 ORGANIC TARGETS (VS. FY23) Revenue 2% - 4% CAGR** EBITDA %* +80 bps EBITDA $* 3% - 5% CAGR** Free Cash Flow / Share* 10% CAGR FY24 – FY26 Organic Targets Solid Growth, Improving Margins and Strong Free Cash Flow Per Share CAGR COMMITTED TO INCREASING SHAREHOLDER VALUE • Targeting >$1.3B of capital returned to shareholders by FY26 • ~$900M remaining on existing share repurchase authorization • Expect majority of deployable capital to be returned to shareholders with leverage target of ~3.0x • M&A targeted on technology and capabilities INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure ** Pro-forma for L&SCM sale and FSA JV deconsolidation
28SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy SAIC Fiscal Year 2026 Targets INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure REVENUE $7.3B – $7.5B 2% to 4% organic revenue growth CAGR FREE CASH FLOW* $515M ~$11/share EBITDA* $700M – $725M FY26 adj. EBITDA* margin guidance of 9.5%-9.7% GTA (Growth and Technology Accelerants) ~40% of Revenue
29SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Committed to Remaining Capital-Light Margin Improvement Driving Increased ROIC for SAIC 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% CY20 CY21 CY22 CY23 C ap ex a s % o f R ev en ue Peer Average SAIC 2018 ROIC 2022 ROIC ‘22 vs. ‘18 SAIC 9% 13% Peer 1 14% 12% Peer 2 10% 8% Margin improvement expected to drive higher ROIC while maintaining capital light business model INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Focused Business Model and Strategy 0% 2% 4% 6% 8% 10% 12% 14% 16% Peer 1 Peer 2 SAIC 2018 - 2022 2018 - 2022 2018 - 2022 R et ur n on In ve st ed C ap ita l
30SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy FY24 FY25 FY26 Revenue $7.05B - $7.20B $7.1B - $7.3B $7.3B - $7.5B Adjusted EBITDA Margin* 9.2% - 9.4% 9.4% - 9.6% 9.5% - 9.7% Adjusted Earnings per Share* $6.80 - $7.00 $7.60 - $7.80 $8.50 - $8.70 Weighted Average Diluted Shares Outstanding ~54M ~51M ~48M Free Cash Flow* $460M - $480M $480M - $500M $505M - $525M Free Cash Flow per Share* ~$9 ~$10 ~$11 Net Leverage* ~3.0x ~3.0x ~3.0x Multi-Year Financial Targets INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure ~$11 Free Cash Flow per Share Target Assumes ~$1B of Share Repurchases While Maintaining Capacity for Additional Share Repurchases or Capability-focused M&A
31SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Solid Organic Revenue Growth Expected to Continue INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% FY22 FY23 FY24 Target FY25 Target FY26 Target SAIC Adjusted Organic Growth FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 Revenues, as Reported $7,056 $7,394 $7,394 $7,704 $7,704 $7,125 + $7,125 + $7,200 + $7,200 + $7,400 + Acquired Revenue ($184) ($73) Divested Revenue $25 ($650) $150 Working Days Adjustment** ($120) ($135) Adjusted Pro-forma Revenues $7,056 $7,235 $7,394 $7,511 $6,919 $7,125 + $6,975 $7,200 + $7,200 + $7,400 + Adjusted Organic Revenue y/y* 3% 2% 3% 3% 3% ** Results reflect four additional working days in FY23 and five fewer working days in FY24 + Revenue figures reflect midpoint of target range 5 Year Average Growth of 2.5% - 3.0% SAIC Adjusted Organic Growth* excl. Contract Transitions * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
32SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Solid Path to Organic Margin* Improvement FY23 Actual + LSCM Sale & FSA + LSCM Sale + Mix & Execution + Mix & Execution + Mix & Execution FY24 Expected FY25 Expected FY26 Expected 8.8% 9.6% 9.3% 9.5% INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Margin Improvement Expected to Drive Higher ROIC While Maintaining Capital Light Business Model * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
33SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy FY23 – FY26 Free Cash Flow* Bridge FY 23 F C F In cr ea se d Ea rn in gs / W C Im pa ct o f L & SC M S al e an d FS A JV D ec on so lid at io n H ig he r C as h T ax es & In te re st FY 24 F C F (E st im at ed ) In cr ea se d Ea rn in gs / W C H ig he r C as h T ax es in cl . Se ct io n 17 4 FY 25 F C F (E st im at ed ) FY 26 F C F* ( Es tim at ed ) >$8 per share 3.4x leverage ~$9 per share 3.0x leverage In cr ea se d Ea rn in gs / W C H ig he r C as h T ax es in cl . Se ct io n 17 4 ~$10 per share 3.0x leverage ~$11 per share 3.0x leverage ~$10 per share Excl. Sec. 174 ~$11 per share Excl. Sec. 174 ~$12 per share Excl. Sec. 174 FY 26 F C F INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure
34SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Incentive Compensation Structure INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A P E R F O R M A N C E TA R G E T S A N D W E I G H T I N G S Revenue 33.3% Adjusted EBITDA* 33.3% Adjusted Operating Cash Flow* 33.3% P E R F O R M A N C E S C A L E Peer informed and narrowed to drive outperformance M U LT I P L I E R S + / - 10% revenue and EBITDA modifier + / - 20% individual leadership multiplier P E R F O R M A N C E TA R G E T S A N D W E I G H T I N G S Adjusted EBITDA* 33.3% Adjusted Operating Cash Flow* 33.3% Relative TSR 33.3%** M O D I F I E R S +/- 20% Relative TSR M I X 60% Performance Share Units 40% Restricted Share Units Updated Incentive Compensation Structure to Further Align Executive Performance with Shareholder Value SHORT-TERM INCENTIVE PLAN LONG-TERM INCENTIVE PLAN Blue indicates change from FY21 incentive compensation plan * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, the corresponding GAAP financial measure ** Relative TSR is a performance target metric for Executive Leadership only
35SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Driving Change with Incentive Compensation Structure INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A 0% 50% 100% 150% 200% 85% 90% 99% 100% 101% 110% 115% 3rd Tier 2nd Tier 1st Tier % o f T ar ge t Ea rn ed ~95% 100% ~105% % of Target Achieved Peer-Informed S-Curve* with Payout Modifiers Incentivize Material Outperformance • Use of flat spot incentivizes material outperformance vs. plan • Payout modifiers introduce incremental risk & opportunity relative to target Plan and S-Curves Are Peer-Informed • Shape of S-Curve is informed by performance relative to peer group Adapt Metrics throughout Enterprise • Relative weightings of metrics and payouts can be modified based on specific opportunities of the business unit KEY ELEMENTS OF DESIGN * S-Curve is illustrative and not indicative of actual SAIC incentive compensation plan Results in 10% reduction to overall payout Results in 10% increase to overall payout
36SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy Financial Performance and Strategy Resonating with Shareholders -30% -20% -10% 0% 10% 20% 30% 40% 50% D ec -2 1 Ja n- 22 Fe b- 22 M ar -2 2 A pr -2 2 M ay -2 2 Ju n- 22 Ju l-2 2 A ug -2 2 Se p- 22 O ct -2 2 N ov -2 2 D ec -2 2 Ja n- 23 Fe b- 23 M ar -2 3 SAIC Peer Avg. S&P 500 INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A Continued Commitment to Business Model and Shareholder-Focused Capital Deployment
37SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy ADVANCE CULTURE Sustain competitive advantage through a differentiated employee experience and culture that bring out the best in our people ALIGN INCENTIVES Drive further alignment for SAIC executive leadership between incentive pay and long-term performance to instill owner mindset across the company REINVEST TO DRIVE GROWTH Prioritize internal investment to drive sustained growth with improving margin rate COMMIT TO BUSINESS MODEL Invest to remain the trusted and best-in-class technology integrator for our customers while maintaining a capital light business model DRIVE SHAREHOLDER VALUE Focused capital deployment - maximize free cash flow efficiency and allocate excess cash to highest ROI with a bias towards returning capital to shareholders Focus on Long-term Shareholder Value INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A
38SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I Analyst Q&A
39SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED IAsset-light technology integrator with shareholder-focused capital deployment strategy INTRODUCTION STRATEGY & MARKET OUTLOOK CEO Nazzic Keene DEFENSE & CIVILIAN President Bob Genter NATIONAL SECURITY & SPACE President Michael LaRouche FINANCIAL OUTLOOK CFO Prabu Natarajan Q&A