18 slides from Cgi Inc. Class A's earnings presentation, Jan 31, 2018
Slide 1: First Quarter Fiscal 2018 Results
FIRST QUARTER FISCAL 2018 RESULTS January 31, 2018 © 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: Q1-F2018: Results
Q1-F2018: Results vs Q1 F2017 Revenue $2.8B 5.3% Growth in constant currency 4.9% Adjusted EBIT $406M 2.4% Adjusted EBIT margin 14.4% Net earnings $285M 3.5% Net earnings margin 10.1% Net earnings excluding specific items* $288M 3.7% Net earnings margin excluding specific items* 10.2% Diluted EPS $0
Slide 5: High quality bookings push backlog to $21 billion
High quality bookings push backlog to $21 billion Contract awards Q1 F2018 $3.0 billion 106% book-to-bill TRAILING TWELVE MONTHS $11.3 billion 103% book-to-bill 5
Slide 6: Cash provided by operating activities
Cash provided by operating activities Q1 F2018 $410 million 14.6% of revenue $1.41 per diluted share FISCAL 2017 $1.4 billion 12.9% of revenue $4.76 per diluted share 6
Slide 7: Strategic initiative to accelerate profitable growth
Strategic initiative to accelerate profitable growth Update as of December 31, 2017 PLAN AS ANNOUNCED IN Q3-F2017 $165 million to be expensed Benefit starting Q1-F2018 and throughout F2018 Q1-F2018 PROGRESS AGAINST PLAN $33 million expensed in Q1 74% of total plan expensed since initiation Cash disb
Slide 8: Bookings of $3.0 billion; TTM book-to-bill of 103%
Bookings of $3.0 billion; TTM book-to-bill of 103% Bookings distribution G H E A D F B C A B A E A B D C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.K. 21% A. Government 43% renewals 62% and consulting 56% B. Northern Europe 17% B. MRD 24% B. N
Slide 9: Improving mix of high quality revenue
Improving mix of high quality revenue Revenue distribution G E A D A F A A.1 B E D C A.2 B C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 28% A. Government 31% business functions 48% B. Canada 16% B. MRD 25% 1. IT services 38% C. France 15% C. Financial services 2
Slide 10: Well balanced profitability across the Globe
Well balanced profitability across the Globe Revenue and EBIT segmentation Revenue: $2.8B Adjusted EBIT: $406M Growth @cc of 4.9% Margin: 14.4% A. Northern Europe 6% 8% B. Canada 11% 17% 4% 11% C. France H A G D. U.S. Commercial and 12% GH A 10% State Government F 22% F B 14% B E. U.S. Federal E E C
Slide 11: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $406 million; margin of 14.4% in Q1 F2018 In millions $600 Adjusted EBIT 16% 14.5% 14.8% 14.3% 14.1% 14.4% Adjusted EBIT margin 14.6% 14% $500 13.5% 11.3% 12.8% 12% $400 11.5% 10% $300 8.3% 8% 6% $200 4% $100 2% $0 0% Adjusted EBIT is a measure for which
Slide 12: Strong improving profitability with better mix
Strong improving profitability with better mix GAAP Net earnings margin $1.20 12% GAAP Diluted EPS GAAP Net Margin 10.3% 10.3% 10.1% 10.1% 9.8% $1.00 9.3% 10% 8.9% 8.4% $0.80 8% 7.2% 6.9% $0.60 6% $0.40 4% $0.20 2% 0.9% $0.00 0% 12
Slide 13: Strong improving profitability with better mix
Strong improving profitability with better mix Net earnings margin excluding specific items $1.20 12% Diluted EPS - excl. specific items 10.2% Net Margin - excl. specific items $1.00 10% 10.3% 10.4% 10.1% 9.9% 9.8% 8.6% 9.3% 7.8% $0.80 8% 7.9% $0.60 6% 5.4% $0.40 4% $0.20 2% $0.00 0% Net earnings, N
Slide 14: Generating $1.4 billion in cash TTM
Generating $1.4 billion in cash TTM Cash provided by operating activities In millions 13.9% % revenue $1,600 TTM Cash flow from operations (CFO) 14% 12.9% 13.0% 12.9% 12.7% TTM CFO (% of revenue) 12.3% 12.3% $1,400 12% 11.0% $1,200 10% $1,000 8.9% 8% $800 6.6% 6% $600 5.0% 4% $400 2% $200 $0 0% 14
Slide 15: Net debt to cap well within our comfort zone
Net debt to cap well within our comfort zone In millions $4,500 44.7% 45% 41.1% Net debt 38.9% Net debt to cap ratio $4,000 40% $3,500 32.6% 35% $3,000 30% $2,500 25% 22.7% 25.1% 20.5% 19.3% $2,000 18.3% 18.2% 20% 17.2% $1,500 15% $1,000 10% $500 5% $0 0% 15
Slide 16: Maintaining balance and flexibility to capitalize on strategic opportunities
Maintaining balance and flexibility to capitalize on strategic opportunities Debt maturity schedule In millions $600 $535 $500 $438 $400 $300 $288 $259 $200 $100 $63 $63 $63 $0 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing loans. 16
Slide 17: Delivering superior returns over time
Delivering superior returns over time ROE and ROIC trends 25% ROE ROIC 20% 16.2% 15% 13.7% 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. 17
Slide 18: Contact information
Contact information Mathieu Richard Lorne Gorber Director Executive Vice-President mathieu.richard@cgi.com Global Communications +1 (514) 415-3746 and Investor Relations lorne.gorber@cgi.com Samantha Taccone +1 (514) 841-3355 Specialist +1 (416) 306-3782 samantha.taccone@cgi.com For more information