17 slides from Cgi Inc. Class A's earnings presentation, Feb 1, 2017
Slide 1: First Quarter Fiscal 2017 Results
FIRST QUARTER FISCAL 2017 RESULTS February 1, 2017 © CGI Group Inc. CONFIDENTIAL
Slide 2: Forward-looking statements
Forward-looking statements All statements in our presentations that do not directly and exclusively relate to historical facts constitute “forward- looking statements” within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchan
Slide 3: George D. François and Steve Schindler Boulanger
GEORGE D. FRANÇOIS SCHINDLER BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer 3
Slide 4: Q1-F2017: Results
Q1-F2017: Results vs Q1 F2016 Revenue – growth @ cc $2.7B 3.7% Adjusted EBIT $397M 3.3% Adjusted EBIT margin 14.8% 50 bps Net earnings – excluding specific items* $278M 4.8% Net earnings margin* 10.4% 50 bps Diluted EPS – excluding specific items* $0.90 7.1% * Specific items in Q1-F2017:$1.9 million
Slide 5: New contract awards
New contract awards Q1 bookings at 3 billion; high quality backlog of $21 billion Q1 F2017 $3.0 billion 111% book-to-bill TRAILING TWELVE MONTHS $11.5 billion 108% book-to-bill 5
Slide 6: Cash provided by operating activities
Cash provided by operating activities Q1 F2017 $350 million 13.1% of revenue TRAILING TWELVE MONTHS $1.4 billion 12.7% of revenue $4.36 per diluted share 6
Slide 7: Q1 F2017: Bookings distribution
Q1 F2017: Bookings distribution Bookings of $3 billion; book-to-bill of 111% FG E E D A A B A A B D C B C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.S. 29% A. Financial services 32% renewals 62% and consulting 45% B. Canada 19% B. Government 2
Slide 8: Q1 F2017: Revenue distribution
Q1 F2017: Revenue distribution Improving mix of high quality revenue G E A D F A B A.1 E A D B C A.2 C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 27% A. Government 34% business functions 55% B. Canada 16% B. MRD 23% 1. IT services 46% C. France 14% C. Financial
Slide 9: Revenue and EBIT segmentation
Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $397M Revenue: $2.7B Margin: 14.8% 5% 8% 11% 5% 27% 29% G A. U.S. G F A B. Canada F 13% A C. Nordics E 13% E D. France B E. U.K. D D C B C F. ECS 12% 15% 14% G. Asia Pacific 22% 15% 11% Adjusted
Slide 10: Improving profitability
Improving profitability Adj. EBIT at $397 million; margin of 14.8% in Q1 F2017 In millions Logica integration $600 14.9% 16% 14.7% 14.5% 14.8% 14.3% 14.6% 14% $500 12.7% 12.6% 13.5% 12% $400 10.4% 10% $300 8% 7.1% 6% $200 Adjusted EBIT Adjusted EBIT margin 4% $100 2% $0 0% Adjusted EBIT is a measure
Slide 11: Improving profitability
Improving profitability Net earnings margin of 10.3% - back to pre-acquisition level $1.00 15% Logica integration $0.80 10% 8.4% 10.3% 10.3% $0.60 9.9% 10.1% 7.2% 9.3% 8.9% $0.40 4.5% 5% 5.7% $0.20 0% $0.00 -$0.20 -5% -$0.40 -10% -$0.60 -10.4% Diluted EPS (GAAP) Net Margin (GAAP) -$0.80 -15% 11
Slide 12: Cash provided by operating activities
Cash provided by operating activities Generating $1.4 billion on a trailing twelve months (TTM) basis In millions % revenue $1,600 Logica integration 18% TTM Cash flow from operations (CFO) 16.6% TTM CFO (% of revenue) $1,400 16% 14.9% 13.9% 14% $1,200 12.9% 12.7% 12.3% 12% 11.0% 12.3% $1,000 10% $8
Slide 13: Net debt
Net debt Net debt to cap of 18.2% - well within our comfort zone In millions $3,500 Logica 50% Net debt acquisition 44.7% Net debt to cap ratio 45% $3,000 Share 38.9% 40% 41.1% repurchase $2,500 35% 32.6% 30% $2,000 26.6% 25.1% 22.7% 25% 20.5% $1,500 18.2% 20% 19.4% 18.3% $1,000 15% 10% $500 5% $0 0
Slide 14: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $500 $470 $450 $403 $400 $350 $309 $300 $261 $250 $200 $150 $100 $67 $67 $67 $50 $0 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing loans. 14
Slide 15: ROE and ROIC trends
ROE and ROIC trends Delivering superior returns over time 25% Logica integration ROE ROIC 20% 15% 10% 5% 0% Return on equity (ROE) and return on invested capital (ROIC) are measures for which we provide definitions and details in the MD&A. 15
Slide 16: Share buyback program renewal
Share buyback program renewal Potential to purchase and cancel up to 21.2 million shares 16
Slide 17: Contact information
Contact information Mathieu Richard Lorne Gorber Director Executive Vice-President mathieu.richard@cgi.com Global Communications +1 514-415-3272 and Investor Relations lorne.gorber@cgi.com Samantha Taccone +1 514-841-3355 Coordinator samantha.taccone@cgi.com +1 514-415-3123 For more information: CGI