20 slides from Cgi Inc. Class A's earnings presentation, Jul 26, 2023
Slide 1: Third Quarter Fiscal 2023 Financial results and highlights
Third Quarter Fiscal 2023 Financial results and highlights For the three months ended June 30, 2023 and 2022 July 26, 2023
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 © 2023 CGI Inc. 3
Slide 4: Financial highlights: Q3 F2023 vs Q3 F2022
Financial highlights: Q3 F2023 vs Q3 F2022 Revenue $3.62B ▲ 11.2% Constant currency growth1 ▲ 6.3% Earnings before income taxes $559M ▲ 14.3% Earnings before income taxes margin2 15.4% ▲ 40 bps Adjusted EBIT1 $585M ▲ 12.5% Adjusted EBIT margin1 16.1% ▲ 10 bps Net earnings $415M ▲ 13.9% Net earnings
Slide 5: CEO remarks
CEO remarks “In the third quarter of fiscal 2023, our team again delivered double-digit EPS accretion and sustained margin expansion on a year-over-year basis,” said George D. Schindler, President and Chief Executive Officer. “Our results were supported by the combination of our profitable growth st
Slide 6: Talent profile
Talent profile Consultants & Professionals 17.2% voluntary attrition (below industry Balanced 35% +3,000 85% delivery model Average) year-over-year are shareholders identify as female increase through our 61% Proximity +2,688 year-over-year Share Purchase Plan A culture of ownership 39% Global deliv
Slide 7: Revenue performance: Q3 F2023
Revenue performance: Q3 F2023 (in millions of dollars and % of revenue) Revenue mix $3,623 +11.2% +6.3% $3,259 in constant currency1 Q3 F2022 Q3 F2023 © 2023 CGI Inc. 7 1) Constant currency growth is a non-GAAP measure for which we provide the reconciliation to the closest IFRS measure in the Q3 F20
Slide 8: Financial highlights: Q3 F2023
Financial highlights: Q3 F2023 (in millions of dollars and % of revenue) Earnings before income Net earnings Cash provided by operating Diluted EPS taxes and margin1 and margin1 activities and as a % of revenue1 $1.75 $559 $415 -2.4% +14.3% +13.9% +15.9% $419 $409 $489 $364 $1.51 15.0% 15.4% 11.2% 1
Slide 9: Demand for end-to-end services driving bookings
Demand for end-to-end services driving bookings Book-to-bill ratio 113% for the last twelve months Q3 F2023 bookings1 Q3 F2023 Book-to-bill ratio1 Bookings by contract type Bookings by service type Managed IT and business process services 24% New business 43% 57% Extensions, renewals Business and st
Slide 10: Segmented Results
Segmented Results Q3 F2023 Q3 F2022 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe 656.8 80.8 12.3% 553.5 70.1 12.7% U.S. Commercial and State Government 569.8 98.4 17.3% 528.0 75.6 14.3% Canada 518.8 115.8 22.3% 524.5 113.6 21.7% U.S. Federa
Slide 11: Other Financial Metrics
Other Financial Metrics Cash from operating activities Capital structure ratios Q3 F2023 Last 12 months Return on Invested Capital 2 11.3% 14.1% ▼ versus 1 5 . 8 % i n Q 3 F 2 0 2 2 of revenue1 of revenue1 Net Debt to Capitalization 2 Prior year period $419M Prior year period $1.9B ▼ versus 3 0 . 6
Slide 12: Revenue Trend
Revenue Trend Revenue of $3,623 million, year-over-year growth of 11.2% or 6.3%* on a constant currency basis In millions Revenue 11.2% Growth $3,700 Constant currency growth* Linear (Constant currency growth*) $3,600 $3,500 10.0% $3,400 $3,300 5.0% $3,200 $3,100 6.3% $3,000 0.0% $2,900 $2,800 $2,70
Slide 13: Earnings Before Income Taxes and Margin Trend
Earnings Before Income Taxes and Margin* Trend Earnings before incomes taxes of $559 million; margin of 15.4%, up 40 basis from Q3 F2022 In millions Earnings before income taxes 15.4% $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% © 20
Slide 14: Adjusted EBIT and Margin Trend
Adjusted EBIT* and Margin* Trend Adjusted EBIT of $585 million; margin of 16.1%, up 10 basis from Q3 F2022 In millions Adjusted EBIT* 16.1% 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% © 2023 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 $415 million – diluted EPS of $1.75, up 15.9% from Q3 F2022 11.5% Diluted EPS $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% © 2023 CGI Inc. 15 * Net earnings margin is a key pe
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 $426 million – diluted EPS of $1.80 excluding specific items, up 16.9% from Q3 F2022 $2.00 12.0% Diluted EPS - excl. specific items* 11.7% $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 $3.77 billion, down $0.07 billion from Q3 F2022 In millions Long-term debt and lease liabilities* 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 © 2023 CGI Inc. 17 *Long-term debt and lease liabilities i
Slide 18: Net Debt Trend
Net Debt* Trend Net debt at $2.28 billion or 21.7% net debt to capitalization ratio, down 890 basis points from Q3 F2022 In millions Net debt * $4,000 40% Net debt to capitalization ratio* $3,500 35% $3,000 21.7% 30% $2,500 25% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% © 2023 CGI Inc. 18 * Net
Slide 19: Annual ESG targets, progress and achievements
Annual ESG targets, progress and achievements (as at September 30, 2022) 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 Bind
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