20 slides from Cgi Inc. Class A's earnings presentation, Jan 31, 2024
Slide 1: First Quarter Fiscal 2024 Financial results and highlights
First Quarter Fiscal 2024 Financial results and highlights For the three months ended December 31, 2023 and 2022 January 31, 2024
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. Schindler and Steve Perron
George D. Schindler Steve Perron President and Chief Executive Vice-President and Executive Officer Chief Financial Officer © 2024 CGI Inc. 3
Slide 4: Financial highlights: Q1 F2024 vs Q1 F2023
Financial highlights: Q1 F2024 vs Q1 F2023 Revenue $3.60B ▲ 4.4% Constant currency revenue growth1 ▲ 1.5% Earnings before income taxes $527M ▲ 2.0% Earnings before income taxes margin2 14.6% ▼ (40 bps) Adjusted EBIT1 $584M ▲ 5.4% Adjusted EBIT margin1 16.2% ▲ 10 bps Net earnings $390M ▲ 1.9% Net ear
Slide 5: CEO remarks
CEO remarks “CGI began fiscal year 2024 in a strong position, again demonstrating the resilience of our model and the disciplined execution of our plan,” said George D. Schindler, President and Chief Executive Officer. “The combination of our trusted client partnerships and end-to-end services contr
Slide 6: Talent profile: Consultants & Professionals
Talent profile 90,500 Consultants & Professionals 17.2% voluntary attrition (below industry Balanced 35% +250 86% delivery model Average) year-over-year are shareholders identify as female increase through our 62% Proximity +80 basis points year- Share Purchase Plan over-year A culture of ownership
Slide 7: Revenue performance: Q1 F2024
Revenue performance: Q1 F2024 (in millions of dollars and % of revenue) Revenue mix $3,603 $3,450 +4.4% +1.5% in constant currency1 Q1 F2023 Q1 F2024 © 2024 CGI Inc. 7 1) Constant currency revenue growth is a non-GAAP measure for which we provide the reconciliation to the closest IFRS measure in the
Slide 8: Financial highlights: Q1 F2024
Financial highlights: Q1 F2024 (in millions of dollars and % of revenue) Earnings before income Net earnings Diluted EPS taxes and margin1 and margin1 +2.0% $527 $1.67 $517 +1.9% +4.4% $382 $390 $1.60 15.0% 14.6% 11.1% 10.8% Q1 F2023 Q1 F2024 Q1 F2023 Q1 F2024 Q1 F2023 Q1 F2024 Adjusted EBIT Net ear
Slide 9: Demand for end-to-end services driving bookings
Demand for end-to-end services driving bookings Book-to-bill ratio 114% for the last twelve months Q1 F2024 bookings1 Q1 F2024 Book-to-bill ratio1 $4.2B 116% Bookings by contract type Bookings by service type Managed IT and business process services 33% New business 57% 43% 67% Extensions, renewals
Slide 10: Segmented Results
Segmented Results Q1 F2024 Q1 F2023 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe 653.1 86.7 13.3% 628.1 77.4 12.3% U.S. Commercial and State Government 559.0 70.4 12.6% 566.0 82.3 14.5% Canada 499.2 120.1 24.1% 506.4 119.0 23.5% U.S. Federa
Slide 11: Other Financial Metrics
Other Financial Metrics Cash from operating activities Capital structure ratios Q1 F2024 Last 12 months Return on Invested Capital 2 $577M $2.1B 15.9% ▲ versus 1 5 . 5 % i n p r i o r y e a r 16.0% 14.4% period of revenue1 of revenue1 Net Debt to Capitalization 2 Prior year period $ 605M Prior year
Slide 12: Revenue Trend
Revenue Trend Revenue of $3,603 million, year-over-year growth of 4.4% or 1.5%* on a constant currency basis In millions Revenue Growth $3,700 Constant currency growth* Linear (Constant currency growth*) 4.4% $3,600 $3,500 10.0% $3,400 $3,300 5.0% $3,200 $3,100 $3,000 0.0% $2,900 1.5% $2,800 $2,700
Slide 13: Earnings Before Income Taxes and Margin Trend
Earnings Before Income Taxes and Margin* Trend Earnings before incomes taxes of $527 million; margin of 14.6%, down 40 basis from Q1 F2023 In millions Earnings before income taxes 14.6% $600 Earnings before income taxes margin* 16.0% $500 15.0% $400 14.0% $300 13.0% $200 12.0% $100 11.0% $0 10.0% ©
Slide 14: Adjusted EBIT and Margin Trend
Adjusted EBIT* and Margin* Trend Adjusted EBIT of $584 million; margin of 16.2%, up 10 basis from Q1 F2023 In millions Adjusted EBIT* 16.2% Adjusted EBIT margin* 17.0% $600 16.5% $500 16.0% 15.5% $400 15.0% 14.5% $300 14.0% $200 13.5% 13.0% $100 12.5% $0 12.0% © 2024 CGI Inc. 14 * Adjusted EBIT and
Slide 15: Net Earnings Margin and Diluted EPS Trend
Net Earnings Margin* and Diluted EPS Trend Net earnings of $390 million – diluted EPS of $1.67, up 4.4% from Q1 F2023 Diluted EPS 10.8% $2.00 12% Net earnings margin* $1.80 11% $1.60 $1.40 10% $1.20 $1.00 9% $0.80 8% $0.60 $0.40 7% $0.20 $0.00 6% © 2024 CGI Inc. 15 * Net earnings margin is a key per
Slide 16: 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 $427 million – diluted EPS of $1.83 excluding specific items, up 10.2% from Q1 F2023 $2.00 11.9% 12.0% Diluted EPS - excl. specific items* $1.80 Net earnings margin - excl. specific items*
Slide 17: Long-Term Debt and Lease Liabilities Trend
Long-Term Debt and Lease Liabilities* Trend Long-term debt and lease liabilities at $3.00 billion, down $0.88 billion from Q1 F2023 In millions Long-term debt and lease liabilities* 5,000 4,500 4,000 3,500 $3,001.1 3,000 2,500 2,000 1,500 1,000 500 0 © 2024 CGI Inc. 17 *Long-term debt and lease liab
Slide 18: Net Debt Trend
Net Debt* Trend Net debt at $1.84 billion or 17.6% net debt to capitalization ratio, down 650 basis points from Q1 F2023 In millions Net debt * $4,000 Net debt to capitalization ratio* 40% $3,500 35% $3,000 30% $2,500 25% 17.6% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% © 2024 CGI Inc. 18 * Net
Slide 19: Annual ESG targets, progress and achievements
Annual ESG targets, progress and achievements* (as at September 30, 2023) Our goal: To be recognized by our stakeholders as an engaged, ethical, and responsible corporate citizen ENVIRONMENT SOCIAL GOVERNANCE Climate priority People priority • Data privacy and security • Operating under approved Bin
Slide 20: Contact our investor relations team
Contact our investor relations team to continue the conversation Kevin Linder Senior Vice-President, 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 For more information: cgi.com/inves