18 slides from Cgi Inc. Class A's earnings presentation, May 2, 2018
Slide 1: Second Quarter Fiscal 2018 Results
SECOND QUARTER FISCAL 2018 RESULTS For the three months ended March 31, 2018 May 2, 2018 © CGI Group Inc. CONFIDENTIAL
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: Presenters: 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: Q2-F2018: Results
Q2-F2018: Results vs Q2 F2017 Revenue $3.0B 8.3% Growth in constant currency 4.9% Adjusted EBIT $424M 7.4% Adjusted EBIT margin 14.4% Net earnings $274M Flat Net earnings margin 9.3% Net earnings excluding specific items* $303M 10.2% Net earnings margin excluding specific items* 10.3% Diluted EPS $0
Slide 5: First half 2018 summary
First half 2018 summary vs H1 F2017 Revenue $5.8B 6.8% Growth in constant currency 4.9% Adjusted EBIT $831M 4.9% Adjusted EBIT margin 14.4% Net earnings $560M 1.7% Net earnings margin 9.7% Net earnings excluding specific items* $591M 6.9% Net earnings margin excluding specific items* 10.3% Diluted E
Slide 6: $3.5 billion in bookings - backlog grows to $22 billion
$3.5 billion in bookings - backlog grows to $22 billion High quality awards in every operating segments Q2 F2018 $3.5 billion 119% book-to-bill TRAILING TWELVE MONTHS $12.1 billion 108% book-to-bill 6
Slide 7: Cash provided by operating activities
Cash provided by operating activities Q2 F2018 $426 million 14.4% of revenue $1.46 per diluted share TRAILING TWELVE MONTHS $1.5 billion 13.2% of revenue $5.01 per diluted share 7
Slide 8: Bookings of $3.5 billion; TTM book-to-bill of 108%
Bookings of $3.5 billion; TTM book-to-bill of 108% Bookings distribution G E A D F A B B A A E B C D C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. Northern Europe 22% A. Financial Services 30% renewals 65% and consulting 54% B. U.S. Commercial an
Slide 9: Bookings of $3.5 billion; TTM book-to-bill of 108%
Bookings of $3.5 billion; TTM book-to-bill of 108% Bookings summary by segment Bookings (in thousands) Book-to-bill TTM Q2-F2018 TTM Total CGI $3,513,029 $12,076,929 107.7% Northern Europe $770,430 $2,064,081 114.1% Canada $503,568 $1,590,724 88.7% France $483,664 $1,687,507 99.9% U.S. Commercial an
Slide 10: 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 C A.2 D B C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 28% A. Government 32% business functions 48% B. Canada 16% B. MRD 24% 1. IT services 38% C. France 15% C. Financial services 2
Slide 11: Well balanced profitability across the Globe
Well balanced profitability across the Globe Revenue and EBIT segmentation Revenue: $3.0B Adjusted EBIT: $424M Growth @cc of 4.9% Margin: 14.4% A. Northern Europe 5% 7% 16% B. Canada 11% 11% 7% C. France H A G D. U.S. Commercial and 12% GH A 11% State Government F 22% F B 15% B E. U.S. Federal E E C
Slide 12: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $424 million up $29 million; margin of 14.4% in Q2 F2018 In millions $600 Adjusted EBIT 15.3% 15.2% 16% 14.9% 14.7% 14.5% 14.4% Adjusted EBIT margin 14.2% 14.0% 14% $500 12.7% 12.6% 12% 10.4% $400 10% $300 8% 6% $200 4% $100 2% $0 0% Adjusted EBIT is a me
Slide 13: Improving profitability with better mix of revenue
Improving profitability with better mix of revenue GAAP Net earnings margin $1.20 12% GAAP Diluted EPS 10.6% GAAP Net Margin 10.3% 10.1% 9.7% $1.00 10% 9.0% 8.5% 8.6% 9.3% $0.80 8% 8.0% $0.60 6% 5.7% $0.40 4.5% 4% $0.20 2% $0.00 0% 13
Slide 14: Net earnings margin excluding specific items
Net earnings margin excluding specific items Strong improving profitability with better mix of revenue $1.20 12% Diluted EPS - excl. specific items 10.6% 10.6% 10.3% 10.1% 10.1% Net Margin - excl. specific items 9.7% 9.8% $1.00 9.4% 10% 8.7% 8.5% $0.80 8% 7.0% $0.60 6% $0.40 4% $0.20 2% $0.00 0% Net
Slide 15: $5.01 in cash per share over TTM
$5.01 in cash per share over TTM $426 million provided by operating activities; 14.4% of Q2 revenue In millions % revenue $1,600 TTM Cash flow from operations (CFO) 15% 13.8% TTM CFO (% of revenue) 13.4% 13.2% $1,400 12.5% 12.5% 12.5% 11.8% 12% 11.2% $1,200 9.5% $1,000 9% $800 6.7% 6.9% 6% $600 $400
Slide 16: Net debt at $1.5B or 17.5% net debt to cap ratio
Net debt at $1.5B or 17.5% net debt to cap ratio In millions $4,500 43.0% 45% Net debt 39.6% $4,000 Net debt to cap ratio 40% 35.6% $3,500 35% $3,000 27.6% 30% 24.4% 23.8% $2,500 25% 21.7% 21.5% $2,000 18.2% 20% 17.5% $1,500 15% 15.8% $1,000 10% $500 5% $0 0% Net debt and net debt to capitalization
Slide 17: Investing in the highest return opportunities
Investing in the highest return opportunities ROE and ROIC trends 25% ROE ROIC 20% 16.0% 15% 13.5% 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