23 slides from Cgi Inc. Class A's earnings presentation, Nov 7, 2018
Slide 1: Fourth Quarter and Fiscal 2018 Results
FOURTH QUARTER AND FISCAL 2018 RESULTS For the year and three month period ended on September 30, 2018 November 7, 2018 © CGI Group Inc.
Slide 2: Forward-looking information and statements
Forward-looking information and statements Our presentations contain “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United Stat
Slide 3: George D. François and Schindler Boulanger
GEORGE D. FRANÇOIS SCHINDLER BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer © CGI Group Inc.
Slide 4: Q4-F2018 Results
Q4-F2018 Results vs Q4 F2017 Revenue $2.8B 7.3% Growth in constant currency 5.0% Adjusted EBIT* $436M 10.1% Adjusted EBIT margin* 15.6% 40 bps Net earnings $293M 40.8% Net earnings margin 10.5% 250 bps Net earnings excluding specific items* $310M 12.4% Net earnings margin excluding specific items* 1
Slide 5: Fiscal 2018 Results
Fiscal 2018 Results vs F2017 Revenue $11.5B 6.1% Growth in constant currency 4.6% Adjusted EBIT* $1.7B 7.3% Adjusted EBIT margin* 14.8% 20 bps Net earnings $1.1B 10.3% Net earnings margin 9.9% 40 bps Net earnings excluding specific items* $1.2B 9.4% Net earnings margin excluding specific items* 10.5
Slide 6: Demand for digital driving high quality awards
Demand for digital driving high quality awards $3.5B in Q4 bookings, book-to-bill of 126%, Backlog up $1.8B to $22.6B Extensions & New renewals business Q4 F2018 $3.5B 126% 49% 51% BOOKINGS BOOK-TO-BILL CONTRACT TYPE 45% FISCAL 2018 $13.5B 117% 55% Extensions & New renewals business Additional detai
Slide 7: F2018 Bookings of $13.5B; TTM book-to-bill of 117%
F2018 Bookings of $13.5B; TTM book-to-bill of 117% Bookings summary by segment Bookings (in thousands) Book-to-bill Q4-F2018 F2018 F2018 Total CGI $3,533,650 $13,492,959 117.3% Northern Europe $518,917 $2,331,847 123.3% Canada $365,785 $1,647,927 90.6% France $457,771 $1,775,929 101.0% U.S. Commerci
Slide 8: Meeting the demand for digital with integrated end-to-end portfolio of services
Meeting the demand for digital with integrated end-to- end portfolio of services • Higher SI&C volumes, fueled by business from new mergers and client demand for our digital Managem transformation consulting services Systems ent of IT & integration business • Based on buying plans our clients have s
Slide 9: Cash provided by operating activities
Cash provided by operating activities Q4 F2018 $340M* 12.2% $1.20 CASH FLOW % OF REVENUE PER SHARE FISCAL 2018 $1.5B* 13.0% $5.17 * Including cash disbursements related to Restructuring of $22M during Q4 F2018 and $120M during F2018. © CGI Group Inc. 9
Slide 10: Fourth quarter Fiscal 2018
Fourth quarter Fiscal 2018 For the three months ended on September 30, 2018 © CGI Group Inc.
Slide 11: Well balanced profitability across all segments
Well balanced profitability across all segments Q4 F2018 Revenue and adjusted EBIT segmentation Revenue: $2.8B Adjusted EBIT: $436M Growth @cc of 5.0% Margin: 15.6% ECS Asia Pacific Northern Asia Pacific Europe 11% 5% 8% 12% Northern ECS Europe 7% U.K. 14% 12% U.K. 10% Canada 21% U.S. Federal Canada
Slide 12: Strong profitability maintained in Q4
Strong profitability maintained in Q4 Adj. EBIT at $436 million, up $40 million; margin of 15.6%, up 40 basis points In millions Adjusted EBIT Adjusted EBIT margin 15.3% 15.6% $600 15.2% 16% 14.9% 14.7% 14% $500 11.5% 12% $400 10% $300 8% 6% $200 4% $100 2% $303 $342 $342 $370 $344 $363 $371 $379 $3
Slide 13: GAAP net earnings of $293M; EPS of $1.03, up 47.1%
GAAP net earnings of $293M; EPS of $1.03, up 47.1% Net margin of 10.5%, up 250 basis points $1.20 12% GAAP Diluted EPS GAAP Net Margin 10.5% $1.00 10.6% 10% 9.0% $0.80 8.6% 8% 8.0% 7.2% $0.60 6% $0.40 4% $0.20 2% $0.89 $0.60 $0.73 $0.71 $0.67 $0.74 $0.78 $0.80 $0.73 $0.75 $0.90 $0.89 $0.89 $0.90 $0.
Slide 14: Net earnings ex-items of $310M - EPS of $1.09, up 17.2%
Net earnings ex-items of $310M - EPS of $1.09, up 17.2% Net earnings margin ex-items of 11.1%, up 50 basis points $1.20 12% Diluted EPS - excl. specific items 11.1% Net Margin - excl. specific items 10.6% 10.6% 10.1% $1.00 9.4% 10% 7.9% $0.80 8% $0.60 6% $0.40 4% $0.20 2% $0.90 $0.63 $0.72 $0.72 $0.
Slide 15: Net debt at $1.6B or 19.2% net-debt-to-cap ratio
Net debt at $1.6B or 19.2% net-debt-to-cap ratio Over $1.5B in readilly available liquidity – more as needed In millions $3,000 45% Net debt Net debt to cap ratio 38.9% 40% $2,500 35% $2,000 27.6% 30% 25% 21.7% 21.5% $1,500 19.2% 20% 15.8% $1,000 15% 10% $500 $2,890 $2,678 $2,389 $1,925 $1,870 $1,79
Slide 16: Fiscal 2018
Fiscal 2018 For the year ended on September 30, 2018 © CGI Group Inc.
Slide 17: Well balanced profitability across all segments
Well balanced profitability across all segments F2018 Revenue and adjusted EBIT segmentation Revenue: $11.5B Adjusted EBIT: $1.7B Growth @cc of 4.6% Margin: 14.8% ECS Asia Pacific Northern Asia Pacific Europe 11% 5% 7% ECS 11% Northern 6% U.K. Europe 11% 16% U.K. 11% Canada 22% U.S. Federal 13% Cana
Slide 18: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $1.7B , up $115 million; margin of 14.8%, up 20 basis points In millions Adjusted EBIT $1,800 16% Adjusted EBIT margin 14.6% 14.6% 14.8% 14.2% $1,600 14% 12.9% $1,400 12% 10.7% $1,200 10% $1,000 8% $1,702 $800 $1,560 $1,587 $1,457 $1,357 6% $600 $1,076 4%
Slide 19: GAAP Net earnings of $1.1B - EPS of $3.95, up 15.8%
GAAP Net earnings of $1.1B - EPS of $3.95, up 15.8% GAAP Net earnings margin of 9.9%, up 40 basis points $4.00 12% Diluted EPS (GAAP) Net Margin (GAAP) $3.50 10.0% 9.9% 9.5% 9.5% 10% $3.00 8.2% 8% $2.50 $2.00 $3.95 6% 4.5% $3.42 $3.41 $1.50 $3.04 $2.69 4% $1.00 $1.44 2% $0.50 $0.00 0% © CGI Group In
Slide 20: Net earnings ex-items of $1.2B - EPS of $4.19, up 14.8%
Net earnings ex-items of $1.2B - EPS of $4.19, up 14.8% Net earnings margin of 10.5%, up 30 basis points $4.50 12% Diluted EPS adj. Net Margin adj. 10.5% $4.00 10.1% 10.2% 9.8% 10% $3.50 8.5% $3.00 8% 7.2% $2.50 6% $2.00 $4.19 $3.65 $3.46 $1.50 $3.13 4% $2.80 $2.30 $1.00 2% $0.50 $0.00 0% Net earnin
Slide 21: $1.5 billion provided by operating activities or 13% of revenue
$1.5 billion provided by operating activities or 13% of revenue $5.17 in cash per share in Fiscal 2018 In millions % revenue $1,600 18% Cash Flow from Operations (CFO) CFO (% of revenue) $1,400 15% 13.0% $1,200 12.5% 12.5% 12.5% 13% 11.2% $1,000 10% $800 $1,493 6.7% $1,333 $1,359 8% $1,289 $600 $1,1
Slide 22: Net debt at $1.6B or 19.2% net-debt-to-cap ratio
Net debt at $1.6B or 19.2% net-debt-to-cap ratio Over $1.5B in readilly available liquidity – more as needed In millions $3,000 50% Net debt Net debt to cap ratio $2,500 39.6% 40% $2,000 27.6% 30% $1,500 21.7% 21.5% $2,740 19.2% 20% $2,113 15.8% $1,000 $1,780 $1,749 $1,641 $1,333 10% $500 $0 0% Net
Slide 23: Contact investor relations to continue the conversation
Contact investor relations to continue the conversation. Lorne Gorber Mathieu Richard Samantha Taccone Executive Vice-President Director Senior Consultant Investor and Public Relations Investor Relations Investor Relations lorne.gorber@cgi.com mathieu.richard@cgi.com samantha.taccone@cgi.com +1 (514