18 slides from Cgi Inc. Class A's earnings presentation, Jan 27, 2016
Slide 1: First Quarter Fiscal 2016 Results
FIRST QUARTER FISCAL 2016 RESULTS January 27, 2016 © 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 that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United
Slide 3: Michael E. Roach and François Boulanger
MICHAEL E. FRANÇOIS ROACH BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer 3
Slide 4: Q1-F2016: Results
Q1-F2016: Results vs Q1 F2015 Revenue $2.7B 5.6% Adjusted EBIT $384M 11.6% Adjusted EBIT margin 14.3% 80 bps Net earnings ex-items* $265M 12.1% Net earnings margin ex-items* 9.9% 60 bps Diluted EPS ex-items* $0.84 13.5% * Specific items excluded in Q1-F2016: $21.2 million in restructuring costs net
Slide 5: Contract awards
Contract awards High quality backlog above $21 billion Q1 F2016 $3.2 billion 119% book-to-bill TRAILING TWELVE MONTHS $10.5 billion 101% book-to-bill 5
Slide 6: Cash provided by operating activities
Cash provided by operating activities Q1 F2016 $328 million 12.2% of revenue $1.04 per diluted share TRAILING TWELVE MONTHS $1.3 billion 12.3% of revenue $3.99 per diluted share 6
Slide 7: Revenue trend continues improving
Revenue trend continues improving Year-over-year at constant currency 0% -1% -1.9% -1.8% -2% -2.3% -3.1% -3% -3.4% -3.5% -3.5% -3.9% -4% -5% -6.0% -6% -7% -8% 7
Slide 8: Q1 F2016: Bookings distribution
Q1 F2016: Bookings distribution Bookings of $3.2 billion; book-to-bill of 119% F G E D A A E B B A A C D B C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.S. 28% A. Financial services 31% renewals 58% and consulting 58% B. Canada 19% B. MRD 27% B
Slide 9: Revenue distribution
Revenue distribution Improving mix of high quality revenue G E A F D A B A.1 A E D B C A.2 C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 28% A. Government 34% business functions 55% B. U.K. 15% B. MRD 23% 1. IT services 45% C. Canada 14% C. Financial services 20%
Slide 10: Revenue and EBIT segmentation
Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $384M Revenue: $2.7B Margin: 14.3% 5% 5% 11% 9% 27% 28% G A. U.S. F G A B. Canada F C. Nordics 12% A 14% E E D. France D B E. U.K. D C F. ECS 12% B 14% C 13% G. Asia Pacific 21% 16% 13% 10
Slide 11: Improving profitability
Improving profitability Adj. EBIT at $384 million; margin expands by 80 points in Q1 F2016 In millions Logica integration $600 16% 14.7% 14.9% 14% $500 12.7% 14.5% 14.3% 13.6% 13.9% 13.8% 13.5% 12.6% 12% 10.4% $400 10% $300 8.8% 8% Adjusted EBIT Adjusted EBIT margin 7.1% 6% $200 4% $100 2% $0 0% Adj
Slide 12: Improving profitability
Improving profitability Net earnings margin returning to pre-acquisition level $1.00 15% 12.2% 12.2% Logica integration 11.6% $0.80 10.3% 10.1% 9.5% 9.3% 8.9% 10% 8.4% 8.2% $0.60 6.9% 7.2% $0.40 5% $0.20 0.9% 0% $0.00 -$0.20 -5% Diluted EPS (GAAP) Net Margin (GAAP) -$0.40 -10% -$0.60 -$0.80 -15% Dat
Slide 13: Cash provided by operating activities
Cash provided by operating activities On a trailing twelve months (TTM) basis In millions % revenue $1,600 Logica integration 18% 16.6% $1,400 16% 14.9% 13.9% 14% $1,200 12.9% 12.3% 12.5% 12% 12.3% $1,000 11.2% 10% TTM Cash flow from operations (CFO) 9.5% $800 TTM CFO (% of revenue) 8% $600 6.7% 6.9
Slide 14: Net debt – reduced by $1.5 billion since F2012
Net debt – reduced by $1.5 billion since F2012 Net debt to cap improves to 18% from peak of 47% In millions $3,500 50% Net debt 46.5% Logica 44.7% acquisition Net debt to cap ratio 45% $3,000 41.1% 38.9% 40% $2,500 35% 32.6% 30.6% 28.7% 30% $2,000 26.6% 25.1% 22.7% 25% $1,500 Stanley 18.3% 20% acqui
Slide 15: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $600 $500 $485 $415 $400 $318 $300 $273 $200 $118 $100 $69 $69 $69 $0 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing loans. Schedule as
Slide 16: 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. Data prior to F2011 is presented under Canadian GAAP. 16
Slide 17: Share buyback program renewal
Share buyback program renewal Potential to purchase and cancel up to 21.4 million shares 17
Slide 18: 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