22 slides from Cgi Inc. Class A's earnings presentation, Nov 8, 2017
Slide 1: Fourth Quarter and Fiscal 2017 Results
FOURTH QUARTER AND FISCAL 2017 RESULTS November 8, 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 Schindler Boulanger
GEORGE D. FRANÇOIS SCHINDLER BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer 3
Slide 4: F2017: Results
F2017: Results Excluding specific items vs F2016 Revenue $10.8B 1.5% Growth in constant currency 4.3% Adjusted EBIT $1.6B 1.7% Adjusted EBIT margin 14.6% Net earnings* $1.1B 2.4% Net earnings margin* 10.2% 10 bps Diluted EPS* $3.65 5.5% * Specific items in F2017 include : $65.3 million in restructur
Slide 5: Q4-F2017: Results
Q4-F2017: Results Excluding specific items vs Q4-F2016 Revenue $2.6B 1.0% Growth in constant currency 2.5% Adjusted EBIT $396M 0.2% Adjusted EBIT margin 15.2% Net earnings* $276M 0.5% Net earnings margin* 10.6% Diluted EPS* $0.93 4.5% * Specific items in Q4-F2017 include: $65.3 million in restructur
Slide 6: High quality bookings push backlog to $21 billion
High quality bookings push backlog to $21 billion Contract awards Q4 F2017 $2.9 billion 112% book-to-bill FISCAL 2017 $11.3 billion 104% book-to-bill 6
Slide 7: Cash provided by operating activities
Cash provided by operating activities Q4 F2017 $352 million 13.5% of revenue $1.18 per diluted share FISCAL 2017 $1.4 billion 12.5% of revenue $4.48 per diluted share 7
Slide 8: Strategic initiative to accelerate profitable growth
Strategic initiative to accelerate profitable growth Update as of September 30th, 2017 PLAN AS ANNOUNCED IN Q3-F2017 $165 million to be expensed Benefit starting Q1-F2018 and throughout F2018 Q4-F2017 PROGRESS AGAINST PLAN $88.6 million expensed 54% of total plan expensed in Q4 Cash disbursement min
Slide 9: Fiscal 2017
FISCAL 2017
Slide 10: Bookings of $11.3 billion; book-to-bill of 104%
Bookings of $11.3 billion; book-to-bill of 104% F2017 Bookings distribution F G E D E A B A B A A C D C B B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.S. 34% A. Government 36% renewals 58% and consulting 52% B. Nordics 15% B. MRD 24% B. New busi
Slide 11: Improving mix of high quality revenue
Improving mix of high quality revenue F2017 Revenue distribution G E A D F A B A i. E D B C ii. C B Service Type Client Geography Vertical Markets A. Management of IT and business A. U.S. 29% A. Government 33% functions 53% B. Canada 16% B. MRD 23% i. IT services 43% C. France 14% C. Financial servi
Slide 12: Well balanced profitability across the Globe
Well balanced profitability across the Globe F2017 Revenue and EBIT segmentation Revenue: $10.8B Adjusted EBIT: $1.6B Growth @cc of 4.3% Margin: 14.6% 5% 8% 11% 6% 28% A. U.S. G 31% G B. Canada 10% F F A C. Nordics E A 12% E D. France D E. U.K. D B 12% C B F. ECS C 14% 15% G. Asia Pacific 11% 22% 15
Slide 13: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $1.6 billion; adj. margin of 14.6% in F2017 In millions $1,750 16% 14.6% 14.6% Adjusted EBIT 14.2% 13.7% Adjusted EBIT margin 14% $1,500 12.7% 12.9% 12.0% 11.6% 11.5% 11.2% 12% $1,250 10.7% 10% $1,000 8% $750 $1.6B $1.6B $1.5B $1.4B 6% $500 $1.1B 4% $250
Slide 14: Improving profitability with better mix
Improving profitability with better mix Net earnings margin excluding specific items $3.75 12% Diluted EPS adj. Net Margin adj. 10.1% 10.2% $3.25 9.7% 9.8% 9.4% 9.5% 10% 8.5% $2.75 8.1% 8.3% 8% 6.8% 7.2% $2.25 6% $3.65 $3.46 $1.75 $3.13 $2.80 4% $1.25 $2.30 $1.44 $1.50 2% $0.75 $1.24 $0.92 $1.02 $0.
Slide 15: Cash generated in F2017 of $1.4 billion
Cash generated in F2017 of $1.4 billion Cash provided by operating activities $1,400 Cash Flow from Operations (CFO) CFO (% of revenue) 18% 16.5% 16% $1,200 14.8% 14.8% 14% 12.9% $1,000 13.5% 12% 11.2% 12.5% 12.5% 12.5% $800 10% 9.6% $1.3B $1.4B $1.3B 8% $600 $1.2B 6.7% 6% $400 $630M $671M 4% $570M
Slide 16: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $500 $450 $438M $400 $375M $350 $300 $288M $257M $263M $250 $200 $150 $100 $63M $63M $50 $0 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing loans 16
Slide 17: Fourth Quarter F2017
FOURTH QUARTER F2017
Slide 18: Well balanced profitability across the Globe
Well balanced profitability across the Globe Q4 F2017: Revenue and EBIT segmentation Revenue: $2.6B Adjusted EBIT: $396M Growth @cc 2.5% Margin: 15.2% 6% 9% 11% 29% 7% 28% A. U.S. G G F A B. Canada F C. Nordics 10% A 11% E E D. France D B E. U.K. D C F. ECS 11% C B 14% 15% G. Asia Pacific 25% 10% 14
Slide 19: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $396 million; adj. margin of 15.2% in Q4 F2017 In millions $600 15.3% 15.2% 16% 14.7% 14.9% 14.7% 14.2% 14.5% 14.0% 14% $500 12.7% 12.6% 12% 10.4% $400 10% $300 8% 7.1% Adjusted EBIT 6% $200 Adjusted EBIT margin 4% $100 2% $0 0% Adjusted EBIT is a measure
Slide 20: Delivering strong profitability
Delivering strong profitability Net earnings margin excluding specific items Diluted EPS adj. $1.20 12% Net Margin adj. 10.6% 10.6% 10.1% 10.1% 9.9% 9.7% 9.8% $1.00 9.6% 10% 9.4% 8.7% 8.5% $0.80 8% 7.0% $0.60 6% $0.40 4% $0.20 2% $0.00 0% 20
Slide 21: Net debt
Net debt Net debt to cap within our comfort zone In millions $4,000 Logica 50% 46.5% acquisition Net debt 43.0% Net debt to cap ratio 45% $3,500 39.6% 40% $3,000 35.6% Share repurchases 35% $2,500 27.6% 30% 26.6% 24.4% 23.8% $2,000 25% 21.7% 21.5% 18.2% 20% $1,500 19.4% 15% 15.8% $1,000 10% $500 5%
Slide 22: 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 Specialist samantha.taccone@cgi.com +1 (416) 306-3782 For more information