20 slides from Cgi Inc. Class A's earnings presentation, Jul 31, 2024
Slide 1: Third Quarter Fiscal 2024 Financial results and highlights
Third Quarter Fiscal 2024 Financial results and highlights For the three months ended June 30, 2024 and 2023 July 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: Q3 F2024 vs Q3 F2023
Financial highlights: Q3 F2024 vs Q3 F2023 Revenue $3.67B ▲ 1.3% Constant currency revenue growth1 ▲ 0.2% Earnings before income taxes $594M ▲ 6.3% Earnings before income taxes margin2 16.2% ▲ 80 bps Adjusted EBIT1 $603M ▲ 3.1% Adjusted EBIT margin1 16.4% ▲ 30 bps Net earnings $440M ▲ 6.1% Net earni
Slide 5: CEO remarks
CEO remarks “CGI’s Q3 results reflect the disciplined execution of our plan in this dynamic macro business environment to deliver shareholder value with sustained margin expansion and increased cash from operations,” said George D. Schindler, President and Chief Executive Officer. “Robust quarterly
Slide 6: Talent profile
Talent profile 90,000 Consultants & Professionals 17.2% voluntary attrition (below industry A culture of Balanced Average) ownership delivery model 62% Proximity 87% are shareholders 38% Global delivery through our centers Share Purchase Plan (23% offshore) © 2024 CGI Inc. 6 6
Slide 7: Revenue performance: Q3 F2024
Revenue performance: Q3 F2024 (in millions of dollars and % of revenue) Revenue Revenue mix +1.3% $3,623 $3,672 +0.2% in constant currency1 Q3 F2023 Q3 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 measur
Slide 8: Financial highlights: Q3 F2024
Financial highlights: Q3 F2024 (in millions of dollars and % of revenue) Earnings before income Net earnings Diluted EPS taxes and margin1 and margin1 +6.3% $594 +6.1% $1.91 $440 $559 $415 +9.1% $1.75 15.4% 16.2% 11.3% 11.4% 11.5% 12.0% Q3 F2023 Q3 F2024 Q3 F2023 Q3 F2024 Q3 F2023 Q3 F2024 Adjusted
Slide 9: Book-to-bill ratio 112% for the last twelve months
Book-to-bill ratio 112% for the last twelve months Led by managed services and IP wins Q3 F2024 bookings1 Q3 F2024 Book-to-bill ratio1 $4.3B 116.6% Bookings by contract type Bookings by service type Business and strategic IT consulting 25% New business and systems integration services 35% Extensions
Slide 10: Segmented Results
Segmented Results Q3 F2024 Q3 F2023 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe 643.6 78.1 12.1% 656.8 80.8 12.3% U.S. Commercial and State Government 592.2 94.3 15.9% 569.8 98.4 17.3% Canada 506.8 110.2 21.7% 518.8 115.8 22.3% U.S. Federa
Slide 11: Other Financial Metrics
Other Financial Metrics Cash from operating activities Capital structure ratios Q3 F2024 Last 12 months Return on Invested Capital 2 $497M $2.2B 16.1% ▲ versus 1 5 . 7 % i n p r i o r y e a r 13.5% 15.2% period of revenue1 of revenue1 Net Debt to Capitalization 2 Prior year period $ 409M Prior year
Slide 12: Revenue Trend
Revenue Trend Revenue of $3,672 million, year-over-year growth of 1.3% or 0.2%* on a constant currency basis In millions $3,800 Revenue $3,700 Growth Constant currency growth* 10.0% $3,600 $3,500 5.0% $3,400 1.3% $3,300 0.0% $3,200 0.2% $3,100 -5.0% $3,000 $2,900 -10.0% $2,800 $2,700 -15.0% $2,600 $
Slide 13: Earnings Before Income Taxes and Margin Trend
Earnings Before Income Taxes and Margin* Trend Earnings before incomes taxes of $594 million; margin of 16.2%, up 80 basis from Q3 F2023 In millions Earnings before income taxes $600 Earnings before income taxes margin* 18.0% 16.2% 17.0% 16.0% $500 15.0% 14.0% $400 13.0% 12.0% 11.0% $300 10.0% 9.0%
Slide 14: Adjusted EBIT and Margin Trend
Adjusted EBIT* and Margin* Trend Adjusted EBIT of $603 million; margin of 16.4%, up 30 basis from Q3 F2023 In millions Adjusted EBIT* Adjusted EBIT margin* $650 18.0% 17.5% $550 17.0% 16.4% 16.5% $450 16.0% 15.5% $350 15.0% 14.5% $250 14.0% Global pandemic © 2024 CGI Inc. 14 * Adjusted EBIT and adju
Slide 15: Net Earnings Margin and Diluted EPS Trend
Net Earnings Margin* and Diluted EPS Trend Net earnings of $440 million – diluted EPS of $1.91, up 9.1% from Q3 F2023 12.0% Diluted EPS $2.50 12% Net earnings margin* $2.30 11% $2.10 $1.90 10% $1.70 $1.50 9% $1.30 8% $1.10 $0.90 7% $0.70 $0.50 6% Global pandemic © 2024 CGI Inc. 15 * Net earnings mar
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 $440 million – diluted EPS of $1.91 excluding specific items, up 6.1% from Q3 F2023 $2.00 13.0% Diluted EPS excl. specific items* Net earnings margin - excl. specific items* 12.5% $1.80 12.
Slide 17: Long-Term Debt and Lease Liabilities Trend
Long-Term Debt and Lease Liabilities* Trend Long-term debt and lease liabilities at $3.05 billion, down $0.72 billion from Q3 F2023 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 © 2024 CGI Inc. 17 *Long-term debt and lease liabilities i
Slide 18: Net Debt Trend
Net Debt* Trend Net debt at $1.85 billion or 17.2% net debt to capitalization ratio, down 450 basis points from Q3 F2023 In millions Net debt * $4,000 Net debt to capitalization ratio* 40% $3,500 35% $3,000 30% $2,500 25% $2,000 17.2% 20% $1,500 1,854 15% $1,000 10% $500 5% $0 0% © 2024 CGI Inc. 18
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