17 slides from Cgi Inc. Class A's earnings presentation, Jul 27, 2016
Slide 1: Third Quarter Fiscal 2016 Results
THIRD QUARTER FISCAL 2016 RESULTS July 27, 2016 © CGI Group Inc. CONFIDENTIAL
Slide 2: Forward-looking statements
Forward-looking statements All statements in our presentations that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United
Slide 3: Presenters: Michael E. Roach and François Boulanger
MICHAEL E. FRANÇOIS ROACH BOULANGER Executive Vice-President and Chief Executive Officer Chief Financial Officer 3
Slide 4: Q3-F2016: Results
Q3-F2016: Results vs Q3 F2015 Revenue $2.7B 4.2% Adjusted EBIT $390M 5.2% Adjusted EBIT margin 14.6% 10 bps Net earnings $274M 6.5% Net earnings margin 10.3% 20 bps Diluted EPS $0.89 11.3% Adjusted EBIT is a measure for which we provide the reconciliation to its closest IFRS measure in the MD&A. 4
Slide 5: New contract awards
New contract awards Q3 bookings up $712 million; high quality backlog of $21 billion Q3 F2016 $2.9 billion 110% book-to-bill TRAILING TWELVE MONTHS $11.7 billion 110% book-to-bill 5
Slide 6: Cash provided by operating activities
Cash provided by operating activities Q3 F2016 $352 million 13.2% of revenue $1.14 per diluted share TRAILING TWELVE MONTHS $1.4 billion 12.9% of revenue $4.40 per diluted share 6
Slide 7: Revenue trend returns to profitable growth
Revenue trend returns to profitable growth Year-over-year at constant currency 1% 0.6% 0% -1.0% -1% -1.9% -1.8% -2% -2.3% -3.1% -3% -3.4% -3.5% -3.5% -3.9% -4% -5% -6.0% -6% -7% -8% 7
Slide 8: Q3 F2016: Bookings distribution
Q3 F2016: Bookings distribution Bookings of $2.9 billion; book-to-bill of 110% F G E D E A C A A A B B D C B B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. Canada 37% A. MRD 43% renewals 46% and consulting 48% B. U.S. 16% B. Government 31% B. New bu
Slide 9: Q3 F2016: Revenue distribution
Q3 F2016: Revenue distribution Improving mix of high quality revenue G E A D F A B A A.1 E D B C A.2 C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 28% A. Government 33% business functions 53% B. U.K. 15% B. MRD 23% 1. IT services 44% C. Canada 15% C. Financial se
Slide 10: Revenue and EBIT segmentation
Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $390M Revenue: $2.7B Margin: 14.6% 5% 7% 11% 5% 26% G A. U.S. 32% F 10% G A B. Canada F C. Nordics E A 14% E D. France B 11% D E. U.K. D C C F. ECS B 14% 14% G. Asia Pacific 12% 16% 23% Adjusted
Slide 11: Improving profitability
Improving profitability Adj. EBIT at $390 million; margin of 14.6% in Q3 F2016 In millions Logica integration $600 14.9% 16% 14.7% 14.5% 14.3% 14.6% 13.8% 14% $500 12.7% 13.5% 12.8% 12% 10.4% 11.5% $400 10% $300 8.8% 8% Adjusted EBIT 7.1% 6% $200 Adjusted EBIT margin 4% $100 2% $0 0% Adjusted EBIT i
Slide 12: Improving profitability
Improving profitability Net earnings margin of 10.3% - back to pre-acquisition level $1.00 15% Logica integration $0.80 9.9% 10% 10.7% 10.3% $0.60 10.1% 6.9% 9.3% 8.9% 8.4% 7.2% 6.9% $0.40 5% $0.20 0.9% 0% $0.00 -$0.20 -5% Diluted EPS (GAAP) Net Margin (GAAP) -$0.40 -10% -$0.60 -10.4% -$0.80 -15% 12
Slide 13: Cash provided by operating activities
Cash provided by operating activities Generating $1.4 billion on a trailing twelve months (TTM) basis In millions % revenue $1,600 Logica integration 18% 16.6% $1,400 16% 14.9% 13.9% 14% $1,200 12.9% 12.5% 12.3% 12.3% 11.0% 12% $1,000 12.2% 10% TTM Cash flow from operations (CFO) $800 TTM CFO (% of
Slide 14: Net debt
Net debt Net debt to cap of 20.5% - well within our comfort zone In millions Logica $3,500 50% Net debt acquisition 44.7% Net debt to cap ratio 45% $3,000 41.1% 38.9% Share repurchase 40% $2,500 35% 32.6% 31.1% 28.7% 30% $2,000 26.6% 25.1% 22.7% 25% 20.5% $1,500 20% 19.4% 18.3% $1,000 15% 10% $500 5
Slide 15: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $500 $455 $450 $400 $390 $350 $299 $300 $259 $250 $200 $150 $111 $100 $65 $65 $65 $50 $0 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing
Slide 16: ROE and ROIC trends
ROE and ROIC trends Delivering superior returns over time 25% Logica integration ROE ROIC 20% 16.9% 15% 14.4% 10% 5% 0% Return on equity (ROE) and return on invested capital (ROIC) are measures for which we provide definitions and details in the MD&A. 16
Slide 17: Contact information
Contact information Mathieu Richard Lorne Gorber Director Executive Vice-President mathieu.richard@cgi.com Global Communications +1 514-415-3272 and Investor Relations lorne.gorber@cgi.com Samantha Taccone +1 514-841-3355 Coordinator samantha.taccone@cgi.com +1 514-415-3123 For more information: CGI