Calian Group Ltd. · TSX:CGY
Calian — Q4 2024 Earnings Presentation
37 slides from Calian's earnings presentation, Nov 26, 2024
Slide 1: FY24 Review and Management Update
FY24 Review and Management Update For the year ended September 30, 2024
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements Certain information included in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally ac
Slide 3: Introductory Remarks
Introductory Remarks Kevin Ford, CEO 3 Calian Group Ltd. | Management Update Q4-24
Slide 4: FY24 Key Achievements
FY24 Key Achievements FY24 Results Globalization Acquisitions Customers Another record International 3 strategic acquisitions Partnerships and revenue and adjusted revenues represent collaborations that EBITDA year over 30% of total raise brand awareness revenues in FY24 4 Calian Group Ltd. | Manage
Slide 5: FY24 Financial Review
FY24 Financial Review Patrick Houston, CFO 5 Calian Group Ltd. | Management Update Q4-24
Slide 6: FY24 KPIs – Revenue & Adj. EBITDA Growth
FY24 KPIs – Revenue & Adj. EBITDA1 Growth Revenue Adj. EBITDA1 and Margin (in millions of $) (in millions of $, except margin) 13% 30% Growth Growth Double-digit revenue and adj. EBITDA1 growth 1 This is a non-GAAP measure. Please refer to the MD&A. 6 Calian Group Ltd. | Management Update Q4-24
Slide 7: FY24 KPIs – Operating FCF Generation & Capital Deployment
FY24 KPIs – Operating FCF Generation1 & Capital Deployment Operating FCF1 & Conversion1 Capital Deployment (in millions of $, except %) (in millions of $) 29% Growth Capital allocation priority is M&A 1 This is a non-GAAP measure. Please refer to the MD&A. 7 Calian Group Ltd. | Management Update Q4-
Slide 8: FY24 KPIs – Creating Value for Shareholders
FY24 KPIs – Creating Value for Shareholders Adj. EBITDA1 per diluted OFCF1 per diluted share Adj. EPS1 diluted share (in $) (in $) (in $) 1 This is a non-GAAP measure. Please refer to the MD&A. 8 Calian Group Ltd. | Management Update Q4-24
Slide 9: FY24 KPIs – Leverage & Cash Availability
FY24 KPIs – Leverage & Cash Availability Net debt1/Adj. EBITDA1 Cash Availability (ratio) (in millions of $) Strong balance sheet to pursue growth 1 This is a non-GAAP measure. Please refer to the MD&A. 9 Calian Group Ltd. | Management Update Q4-24
Slide 10: Acquisitions
Acquisitions 10 Calian Group Ltd. | Management Update Q4-24
Slide 11: FY24 Acquisitions - Closed Transactions
FY24 Acquisitions - Closed 3 Transactions 3 Acquisitions $90M 4.9x $83M $19M 21% Capital Average EBITDA Annual Annual EBITDA Deployed Multiple Revenue EBITDA Margin 11 Calian Group Ltd. | Management Update Q4-24
Slide 12: Decisive Group (ITCS) – Pricing and Rationale
Decisive Group (ITCS) Pricing and Rationale • Improves unit economics with larger scale • Complements and rounds out current ITCS portfolio in North America • Generates synergies with existing defence and security customers Price Paid Upfront LTM EBITDA Multiple $50M 6.3x (+ potential earnout) 12 Ca
Slide 13: Decisive Group (ITCS) – Performance Since Acquisition
Decisive Group (ITCS) Performance Since Acquisition High value, high margin engagements Acting as an entry point to Federal government defence and security clients Adj. EBITDA1 Growth2 Dedicated outbound Canadian sales team +25% For higher value, portfolio consistency across North American markets s
Slide 14: Nuclear Assets of MDA (AT) – Pricing and Rationale
Nuclear Assets of MDA (AT) Pricing and Rationale • Benefits from growing nuclear technology market • Adds new capabilities and services to Calian’s nuclear business • Enhances ability to better service Bruce Power, a mutual client Price Paid Upfront LTM EBITDA Multiple $8M 3.2x (no earnout) 14 Calia
Slide 15: Nuclear Assets of MDA (AT) – Performance Since Acquisition
Nuclear Assets of MDA (AT) Performance Since Acquisition Gained synergies Leveraged new expertise for growth and identified cross selling opportunities Adj. EBITDA1 Growth2 Tailwinds from nuclear industry +25% Announcements by federal and provincial governments supporting nuclear energy in Canada Ra
Slide 16: Mabway (Learning) – Pricing and Rationale
Mabway (Learning) Pricing and Rationale • Strengthens and expands relationships with U.K. Ministry of Defence (MOD) • Provides scale in the U.K. and Europe to support expansion • Benefits from large addressable market with opportunities for growth Price Paid Upfront LTM EBITDA Multiple $32M 4.0x (+
Slide 17: Mabway (Learning) – Performance Since Acquisition
Mabway (Learning) Performance Since Acquisition Robust market in Europe Proximity to multiple conflicts is fueling Defence investment at an accelerated pace Adj. EBITDA1 Large scale capacity Growth2 Ability to scale with over 850 staff and a larger +25% accessible network across a broad range of tra
Slide 18: Partnerships
Partnerships 18 Calian Group Ltd. | Management Update Q4-24
Slide 19: FY24 Partnerships - Signed Milestone Agreements
FY24 Partnerships - Signed 2 Milestone Agreements 2 Fortune 100 Companies Building blocks for Health Cloud Services Learning Services Cybersecurity future growth Brand Awareness 19 Calian Group Ltd. | Management Update Q4-24
Slide 20: Collaboration with Microsoft (ITCS)
Collaboration with Microsoft (ITCS) Service expansion Enhances our ability to deliver comprehensive solutions for complex client challenges Innovation Powers Calian’s agility with cutting-edge technology for rapid response to market Diversification Broadens Calian’s reach across cloud, AI and securi
Slide 21: Collaboration with Walmart Canada (Health)
Collaboration with Walmart Canada (Health) Example of cross selling: health services, training, cloud services and infrastructure security monitoring and protecting Provides visibility for Calian’s NexiTM platform Exemplifies Calian’s commitment to providing leading-edge healthcare solutions 21 Cali
Slide 22: Conclusion FY24
Conclusion FY24 Kevin Ford, CEO 22 Calian Group Ltd. | Management Update Q4-24
Slide 23: FY26 Strategic Plan – On Track After One Year
FY26 Strategic Plan – On Track After One Year Adj. EBITDA1 (in $) Doubling Adj. EBITDA1 in 3 Years 1 This is a non-GAAP measure. Please refer to the MD&A. 23 Calian Group Ltd. | Management Update Q4-24
Slide 24: FY25 Guidance and Disclosure Changes
FY25 Guidance and Disclosure Changes Patrick Houston, CFO 24 Calian Group Ltd. | Management Update Q4-24
Slide 25: Adj. EBITDA – Changing Definition Going Forward
Adj. EBITDA – Changing Definition Going Forward • Adj. EBITDA1 will now exclude equity WHAT? expense and transaction/M&A costs WHY? • Aligns with many of our peers • FY24 Adj. EBITDA1 (old): $86M RESULT? • FY24 Adj. EBITDA1 (new): $92M 1 This is a non-GAAP measure. Please refer to the MD&A. 25 Calia
Slide 26: FY25 - Guidance
FY25 - Guidance Revenue Adj. EBITDA1 (in millions of $) (in millions of $) 1 This is a non-GAAP measure. Please refer to the MD&A. 26 Calian Group Ltd. | Management Update Q4-24
Slide 27: Looking Forward – Growing Beyond $1 Billion
Looking Forward – Growing Beyond $1 Billion Kevin Ford, CEO 27 Calian Group Ltd. | Management Update Q4-24
Slide 28: $1 Billion Revenue Target is Just a Goalpost
$1 Billion Revenue Target is Just a Goalpost M&A The objective Track record of performance is to build a multi-billion dollar HOW? Tailwinds in target markets global growth Revenue diversification company Industry solutions 28 Calian Group Ltd. | Management Update Q4-24
Slide 29: Track Record of Performance
Track Record of Performance Revenue (in millions of $) Consistent double-digit growth over time 1 This is a non-GAAP measure. Please refer to the MD&A. 29 Calian Group Ltd. | Management Update Q4-24
Slide 30: Tailwinds in Target Markets
Tailwinds in Target Markets Significant Defence & Public Safety Space programs growth projected in our target markets Cybersecurity Healthcare 1 This is a non-GAAP measure. Please refer to the MD&A. 30 Calian Group Ltd. | Management Update Q4-24
Slide 31: Revenue Diversification
Revenue Diversification Revenue (in millions of $) Diversify revenue streams in higher margin areas 31 Calian Group Ltd. | Management Update Q4-24
Slide 32: Opportunity for More Cross Selling
Opportunity for More Cross Selling Defence Space Health Focus on • Cybersecurity • Health services • Cybersecurity • Training • Digital health services industry • Military • Software • Training equipment engineering • Manufacturing • Cloud services • Cybersecurity solutions • Training • Communicatio
Slide 33: Solid Base to Build and Grow
Solid Base to Build and Grow ✓ Track record of performance ✓ Robust M&A pipeline Supported by ✓ Tailwinds in target markets strong financial ✓ Revenue diversification position ✓ Industry solutions 33 Calian Group Ltd. | Management Update Q4-24
Slide 34: Q&A Period
Q&A Period 34 Calian Group Ltd. | Management Update Q4-24
Slide 35: Thank you
Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations ir@calian.com
Slide 36: Appendix
Appendix 36 Calian Group Ltd. | Management Update Q4-24
Slide 37: Adj. EBITDA – Historical Adjustments
Adj. EBITDA1 – Historical Adjustments 2020 2021 2022 Q1-23 Q2-23 Q3-23 Q4-23 2023 Q1-24 Q2-24 Q3-24 Q4-24 2024 Adj. EBITDA1 as reported 35,621 51,930 65,932 14,255 16,845 14,506 20,381 65,987 19,514 25,692 17,650 22,677 85,533 Equity expense 1,359 2,334 2,587 620 699 808 1,743 3,870 1,190 1,128 1,37