18 slides from Cgi Inc. Class A's earnings presentation, Aug 2, 2017
Slide 1: Third Quarter Fiscal 2017 Results
THIRD QUARTER FISCAL 2017 RESULTS August 2, 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: Q3-F2017: Results
Q3-F2017: Results Excluding specific items vs Q3 F2016 Revenue $2.8B 6.4% Growth @ cc 5.2% Adjusted EBIT $399M 2.2% Adjusted EBIT margin 14.1% Net earnings* $278M 1.7% Net earnings margin* 9.8% Diluted EPS* $0.93 4.5% * Specific items in Q3-F2017:$1.8 million in integration-related costs net of tax.
Slide 5: Revenue growth maintaining the pace
Revenue growth maintaining the pace 5.6% 5.2% 3.7% 2.8% 0.6% -1.0% -1.8% -3.1% -3.5% Q3 F2015 Q4 F2015 Q1 F2016 Q2 F2016 Q3 F2016 Q4 F2016 Q1 F2017 Q2 F2017 Q3 F2017 Change vs prior year at constant currency Constant currency revenue growth is a measure for which we provide the reconciliation to its
Slide 6: Building high quality backlog of $21 billion
Building high quality backlog of $21 billion New contract awards TRAILING TWELVE MONTHS BOOKINGS $11.3 billion 104% book-to-bill 6
Slide 7: Cash provided by operating activities
Cash provided by operating activities TRAILING TWELVE MONTHS OPERATING CASH FLOW $1.4 billion 13.0% of revenue $4.60 per diluted share 7
Slide 8: Bookings of $2.7 billion; TTM book-to-bill of 104%
Bookings of $2.7 billion; TTM book-to-bill of 104% Bookings distribution F G E D A E A B B A A D C B B C Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.S. 31% A. Government 31% renewals 53% and consulting 57% B. Nordics 17% B. MRD 28% B. New busines
Slide 9: Improving mix of high quality revenue
Improving mix of high quality revenue Revenue distribution G E A D A F B A.1 E A D C A.2 B C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 29% A. Government 33% business functions 53% B. Canada 16% B. MRD 23% 1. IT services 42% 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 Adjusted EBIT: $399M Revenue: $2.8B Margin: 14.1% 5% 8% 11% 4% 29% A. U.S. G F A B. Canada 10% FG 37% C. Nordics E A 12% E D. France D 10% D B E. U.K. C C F. ECS B 14% 14% G. Asia Pacific 11% 15% 20% Adjusted EBIT is a measur
Slide 11: Strong profitability maintained
Strong profitability maintained Adj. EBIT at $399 million; margin of 14.1% in Q3 F2017 In millions Logica integration $600 14.9% 16% 14.7% 14.5% 14.8% 14.3% 14.1% 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 EBI
Slide 12: Strong improving profitability with better mix
Strong improving profitability with better mix Net earnings margin $1.00 15% Logica integration $0.80 10% 8.4% 10.3% 10.3% $0.60 9.9% 10.1% 9.8% 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% 12
Slide 13: Generating $1.4 billion in cash TTM
Generating $1.4 billion in cash TTM Cash provided by operating activities 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% 12.9% 13.0% 14% $1,200 12.7% 12.3% 12% 11.0% 12.3% $1,000 10% $800 8.9% 8% $600 6.6% 6
Slide 14: Net debt to cap well within our comfort zone
Net debt to cap well within our comfort zone In millions $3,500 Logica 50% Net debt acquisition Net debt to cap ratio 45% $3,000 44.7% 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% 17.2% 20% 19.4% 18.3% $1,000 15% 10% $500 5% $0 0% 14
Slide 15: Maintaining balance and flexibility to capitalize on strategic opportunities
Maintaining balance and flexibility to capitalize on strategic opportunities Debt maturity schedule In millions $910M due in 5+ years $500 $455 $450 $390 $400 $691M due over next 5 years $350 $299 $300 $262 $250 $200 $150 $100 $65 $65 $65 $50 $0 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Exclud
Slide 16: Delivering superior returns over time
Delivering superior returns over time ROE and ROIC trends 25% Logica integration ROE ROIC 20% 17.2% 15% 14.7% 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. 16
Slide 17: Accelerating actions to capitalize on global demand and the permanent shift to digital
Accelerating actions to capitalize on global demand and the permanent shift to digital Strategic initiative $165 million Double-digit pre-tax charge EPS growth - Continue the alignment proximity-based members to best partner with clients - Accelerate profitable growth - Complete our shift to “as a s
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 Specialist +1 (416) 306-3782 samantha.taccone@cgi.com For more information