22 slides from Cgi Inc. Class A's earnings presentation, Apr 27, 2022
Slide 1: Second Quarter Fiscal 2022 Financial Results and highlights
Second Quarter Fiscal 2022 Financial Results and highlights For the three month period ended March 31, 2022 April 27, 2022
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” w ithin the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United Sta
Slide 3: George D. Schindler and François Boulanger
George D. Schindler François Boulanger President and Chief Executive Vice-President and Executive Officer Chief Financial Officer © 2022 CGI Inc. 3
Slide 4: Financial highlights: Q2 F2022
Financial highlights: Q2 F2022 vs Q2 F2021 Revenue $3.27B ▲ 6.2% Constant currency growth* ▲ 10.0% Adjusted EBIT* $524M ▲ 7.7% Adjusted EBIT margin* 16.0% ▲ 20 bps Net earnings $372M ▲ 9.0% Net earnings margin* 11.4% ▲ 30 bps Net earnings excluding specific items* $374M ▲ 9.4% Net earnings margin ex
Slide 5: CEO remarks
CEO remarks “In the second quarter of fiscal 2022, we delivered on our profitable growth plan with double digit increases year-over-year in both revenue and EPS,” said George D. Schindler, President and Chief Executive Officer. “Across our end-to-end portfolio of services, demand remains strong as c
Slide 6: Talent profile: Consultants & Professionals
Talent profile Consultants & Professionals 17.2% voluntary attrition (below industry 34% 85% Balanced global +7,000 Average) identify as female are shareholders delivery model year-over-year through our +70 bps year-over-year Share Purchase Plan net increase 23% Offshore 77% Proximity, Improving rep
Slide 7: Revenue performance: Q2 F2022
Revenue performance: Q2 F2022 Revenue mix Service type Client geography Vertical market $3,269 H E G A D $3,079 A F B A E +6.2% C D +10.0% B in constant C B currency* Q2 F2021 Q2 F2022 A. Managed IT and Business 54% A. U.S. 30% A. Government 35% Process Services B. Canada 16% B. Manufacturing, retai
Slide 8: Financial highlights: Q2 F2022
Financial highlights: Q2 F2022 (in dollars and % of revenue) Adjusted EBIT Cash provided by operating Net earnings and margin, Diluted EPS and margin* activities excluding specific items* excluding specific items* $524 $573 $1.53 $374 $486 $342 $473 11.5% 11.9% $1.35 15.8% +7.7% 16.0% 18.6% -17.5% 1
Slide 9: Demand for end-to-end services driving bookings
Demand for end-to-end services driving bookings Book-to-bill ratio 109% for the last twelve months Q2 F2022 bookings* Q2 Book-to-bill ratio* Bookings by contract type Bookings by service type Managed IT and business New business process services 31% 48% 52% Extensions, renewals Business consulting,
Slide 10: Segmented Results (quarterly)
Segmented Results (quarterly) Q2-F22 Q2-F21 Revenue Adjusted EBIT* Revenue Adjusted EBIT” In millions of CAD $ $ % $ $ % Western and Southern Europe 558.6 85.9 15.4% 513.6 74.3 14.5% U.S. Commercial and State Government 506.7 72.1 14.2% 430.8 61.4 14.3% Canada 495.3 108.3 21.9% 443.8 98.0 22.1% U.S.
Slide 11: Segmented Results (year-to-date)
Segmented Results (year-to-date) Q2-F22 year-to-date Q2-F21 year-to-date Revenue Adjusted EBIT* Revenue Adjusted EBIT* In millions of CAD $ $ % $ $ % Western and Southern Europe 1,072.1 164.8 15.4% 993.9 140.5 14.1% U.S. Commercial and State Government 990.1 143.8 14.5% 867.2 128.6 14.8% Canada 960.
Slide 12: Cash provided by operating activities
Cash provided by operating activities Q2 F2022 LAST 12 MONTHS $1.94 $7.70 per share* per share* 14.5% 15.4% of revenue of revenue Pr ior year per iod $573M Pr ior year per iod $2. 25B *Cash provided by operating activities per diluted share is a key performance measure of our cash provided by operat
Slide 13: Capital Structure Ratios
Capital Structure Ratios Net Debt to Capitalization* Return on Invested Capital* Return on Equity* ▼ versus 30. 9% in Q 2- F2021 ▲ versus 12. 8% in Q 2- F2021 ▲ versus 17. 2% in Q 2- F2021 * Net debt to capitalization and return on invested capital are non-GAAP measures for w hich we provide more de
Slide 14: Q2 F2022 Build & Buy Profitable Growth Strategy
Q2 F2022 Build & Buy Profitable Growth Strategy Invested back into our business $89M $173M YTD Business acquisitions $36M I n c r e a si ng s h a r e h ol der $158M YTD v a l ue Share buy-back $400M $667M YTD © 2022 CGI Inc. 14
Slide 15: Q2 F2022 Acquisitions
Q2 F2022 Acquisitions Closed In regulatory approval process Acquisition date: Feb 28, 2022 Announcement date: March 11, 2022 Segment: U.K. and Australia Segment: Western & Southern Europe 130 professionals 3,000 professionals The merger, combined with the recent opening of CGI’s Space, Defence and “
Slide 16: Revenue Trend
Revenue Trend Revenue of $3,269 million, year -over-year growth of 6.2% or 10.0% on a constant currency basis In millions Revenue $3,200 Growth 12.0% 10.0% $3,100 Constant currency growth* 6.2% 10.0% $3,000 8.0% $2,900 $2,800 6.0% $2,700 4.0% $2,600 2.0% $2,500 $2,400 0.0% $2,300 -2.0% $2,200 -4.0%
Slide 17: Adjusted EBIT Trend
Adjusted EBIT Trend Adjusted EBIT of $524 million; margin of 16.0%, up 20 basis from Q2 F2021 In millions Adjusted EBIT* $600 17.5% Adjusted EBIT margin* 16.0% 17.0% $500 16.5% 16.0% $400 15.5% $300 15.0% 14.5% $200 14.0% 13.5% $100 13.0% $0 12.5% * Adjusted EBIT and adjusted EBIT margin are non-GAA
Slide 18: Net Earnings Margin and Diluted EPS Trend
Net Earnings Margin and Diluted EPS Trend Net earnings of $372M – diluted EPS of $1.53, up 14.2% from Q2 F2021 Diluted EPS $1.80 Net earnings margin* 14% 11.4% $1.60 12% $1.40 10% $1.20 $1.00 8% $0.80 6% $0.60 4% $0.40 2% $0.20 $0.00 0% * Net earnings margin is a key performance measure for w hich w
Slide 19: Net Earnings Margin and Diluted EPS Trend (excluding specific items)
Net Earnings Margin and Diluted EPS Trend Excluding specific items* Net earnings excluding specific items* of $374M – diluted EPS of $1.53 excluding specific items*, up 13.3% from Q2 F2021 $1.80 Diluted EPS - excl. specific items* 14.0% 11.4% $1.60 Net earnings margin - excl. specific items* 12.0% $
Slide 20: Net Debt Trend
Net Debt Trend Net debt at $2.73B or 28.7% net debt to capitalization ratio In millions Net debt * $4,000 40% Net debt to capitalization ratio* $3,500 35% 28.7% $3,000 30% $2,500 25% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% * Net debt and net debt to capitalization ratio are non-GAAP measures
Slide 21: Corporate social responsibility targets, progress and achievements
Corporate social responsibility targets, progress and achievements Be recognized by our stakeholders as an engaged and responsible corporate citizen Pe ople Com m unities Clim ate Diversity and Education Pro bono Net-zero emissions by 2030 • Reach twice as many program participants for • 100% of bus
Slide 22: Contact our investor relations team to continue the conversation
Contact our investor relations team to continue the conversation Kevin Linder Senior Vice-President, Finance and Treasury, and Head of Investor Relations kevin.linder@cgi.com +1-905-973-8363 Christina Leclerc Director, Investor Relations christina.leclerc@cgi.com +1-514-978-5448 IR@cgi.com cgi.com F