21 slides from Cgi Inc. Class A's earnings presentation, Apr 26, 2023
Slide 1: Second Quarter Fiscal 2023 Financial results and highlights
Second Quarter Fiscal 2023 Financial results and highlights For the three months ended March 31, 2023 and 2022 April 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: Q2 F2023 vs Q2 F2022
Financial highlights: Q2 F2023 vs Q2 F2022 Revenue $3.72B ▲ 13.7% Constant currency growth1 ▲ 11.4% Earnings before income taxes $564M ▲ 13.2% Earnings before income taxes margin2 15.2% ▼ (10 bps) Adjusted EBIT1 $601M ▲ 14.7% Adjusted EBIT margin1 16.2% ▲ 20 bps Net earnings $419M ▲ 12.7% Net earnin
Slide 5: CEO remarks
CEO remarks “I am pleased with our performance in the second quarter and throughout the first half of the fiscal year,” said George D. Schindler, President and Chief Executive Officer. “Our team again delivered double-digit EPS accretion and sustained margin expansion, both driven by a combination o
Slide 6: Talent profile
Talent profile Consultants & Professionals 17.2% voluntary attrition (below industry Balanced 35% +8.3% 84% delivery model Average) year-over-year are shareholders identify as female increase through our 61% Proximity +90 bps year-over-year Share Purchase Plan A culture of ownership 39% Global deliv
Slide 7: Revenue performance: Q2 F2023
Revenue performance: Q2 F2023 (in millions of dollars and % of revenue) Revenue mix $3,715 +13.7% +11.4% in constant $3,269 currency1 Q2 F2022 Q2 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 Q2 F2
Slide 8: Financial highlights: Q2 F2023
Financial highlights: Q2 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 $419 $1.76 -0.7% $564 +12.7% $473 +13.2% +15.0% $469 $499 $372 $1.53 15.3% 15.2% 11.4% 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 F2023 bookings1 Q2 F2023 Book-to-bill ratio1 Bookings by contract type Bookings by service type Managed IT and business process services 23% New business 44% 56% Extensions, renewals Business and st
Slide 10: Segmented Results
Segmented Results Q2 F2023 Q2 F2022 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe $714.5 $119.3 16.7% $547.6 $85.3 15.6% U.S. Commercial and State Government $574.9 $64.1 11.2% $506.7 $72.1 14.2% Canada $530.1 $115.3 21.7% $495.3 $108.3 21.9
Slide 11: Cash provided by operating activities
Cash provided by operating activities Q2 F2023 LAST 12 MONTHS 12.6% 14.5% of revenue1 of revenue1 P r i o r ye a r p e r i o d $ 4 7 3 M P r i o r ye a r p e r i o d $ 1 . 9 B © 2023 CGI Inc. 11 1) Cash provided by operating activities as a percentage of revenue is a key performance measure for whic
Slide 12: Capital Structure Ratios
Capital Structure Ratios Return on Invested Capital 1 Return on Equity 1 Net Debt to Capitalization 1 ▼ versus 1 5 . 7 % i n Q 2 F 2 0 2 2 ▼ versus 2 1 . 0 % i n Q 2 F 2 0 2 2 ▼ versus 2 8 . 7 % i n Q 2 F 2 0 2 2 © 2023 CGI Inc. 12 1) Net debt to capitalization and return on invested capital are non
Slide 13: Revenue Trend
Revenue Trend Revenue of $3,715 million, year-over-year growth of 13.7% or 11.4%* on a constant currency basis In millions Revenue 13.7% Growth $3,700 Constant currency growth* Linear (Constant currency growth*) $3,600 $3,500 10.0% $3,400 11.4% $3,300 5.0% $3,200 $3,100 $3,000 0.0% $2,900 $2,800 $2,
Slide 14: Earnings Before Income Taxes and Margin Trend
Earnings Before Income Taxes and Margin* Trend Earnings before incomes taxes of $564 million; margin of 15.2%, down 10 basis from Q2 F2022 In millions Earnings before income taxes 15.2% $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 15: Adjusted EBIT and Margin Trend
Adjusted EBIT* and Margin* Trend Adjusted EBIT of $601 million; margin of 16.2%, up 20 basis from Q2 F2022 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% © 2023 CGI Inc. 15 * Adjusted EBIT and
Slide 16: Net Earnings Margin and Diluted EPS Trend
Net Earnings Margin* and Diluted EPS Trend Net earnings of $419 million – diluted EPS of $1.76, up 15.0% from Q2 F2022 Diluted EPS 11.3% $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. 16 * Net earnings margin is a key pe
Slide 17: 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 $435 million – diluted EPS of $1.82 excluding specific items, up 19.0% from Q2 F2022 $2.00 12.0% Diluted EPS - excl. specific items* 11.7% $1.80 Net earnings margin - excl. specific items*
Slide 18: Long-Term Debt and Lease Liabilities Trend
Long-Term Debt and Lease Liabilities* Trend Long-term debt and lease liabilities at $ 3.85 billion, up $0.12 billion from Q2 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. 18 *Long-term debt and lease liabilities in
Slide 19: Net Debt Trend
Net Debt* Trend Net debt at $2.53 billion or 24.0% net debt to capitalization ratio, down 470 basis points from Q2 F2022 In millions Net debt * $4,000 40% Net debt to capitalization ratio* $3,500 35% 24.0% $3,000 30% $2,500 25% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% © 2023 CGI Inc. 19 * Net
Slide 20: Annual ESG targets, progress and achievements
Annual ESG targets, progress and achievements 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 Binding Corporate Rules (consid
Slide 21: Contact our investor relations team to continue the conversation
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