19 slides from Cgi Inc. Class A's earnings presentation, April 2019
Slide 1: Second Quarter Fiscal 2019 Results
SECOND QUARTER FISCAL 2019 RESULTS For the three months ended March 31, 2019 © CGI Inc. 1
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: George D. François and Schindler Boulanger
GEORGE D. FRANÇOIS SCHINDLER BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer © CGI Inc. 3
Slide 4: Strong Q2 Fiscal 2019 Results
Strong Q2 Fiscal 2019 Results Revenue Adjusted EBIT and margin Cash provided by operating activities (in dollars and % of revenue) $3,068 $454 $462 +4.0% +7.0% +8.5% $2,950 $424 $426 14.4% 14.8% 14.4% 15.1% Q2-F2018 Q2-F2019 Q2-F2018 Q2-F2019 Q2-F2018 Q2-F2019 Net earnings Diluted EPS Backlog $1.14
Slide 5: Q2 Fiscal 2019 Results
Q2 Fiscal 2019 Results vs Q2 F2018 Revenue $3.1B 4.0% Constant currency revenue growth* 4.7% Adjusted EBIT* $454M 7.0% Adjusted EBIT margin* 14.8% 40 bps Net earnings $318M 16.0% Net earnings margin 10.4% 110 bps Net earnings excluding specific items* $324M 7.0% Net earnings margin excluding specifi
Slide 6: First Half Fiscal 2019 Results
First Half Fiscal 2019 Results vs H1 F2018 Revenue $6.0B 4.6% Constant currency revenue growth* 4.6% Adjusted EBIT* $893M 7.5% Adjusted EBIT margin* 14.8% 40 bps Net earnings $630M 12.5% Net earnings margin 10.4% 70 bps Net earnings excluding specific items* $639M 8.1% Net earnings margin excluding
Slide 7: $3.3B in bookings - backlog grows to $22.9B
Q2 Fiscal 2019 Results $3.3B in bookings - backlog grows to $22.9B, up $898M year-over-year Extensions & New renewals business Q2 F2019 36% $3.3B 106% 64% BOOKINGS BOOK-TO-BILL RATIO CONTRACT TYPE 53% TRAILING TWELVE MONTHS $13.3B 113% 47% Extensions & New renewals business Backlog, bookings and boo
Slide 8: Bookings of $13.3B or 113% of revenue over trailing twelve months
Q2 Fiscal 2019 Results Bookings of $13.3B or 113% of revenue over trailing twelve months Bookings (in thousands) Book-to-bill ratio Q2-F2019 TTM TTM Total CGI $3,255,301 $13,289,918 112.9% Western and Southern Europe $635,509 $2,076,111 102.7% Northern Europe $427,941 $2,152,051 115.0% Canada $463,6
Slide 9: Meeting the demand for digital with an integrated end-to-end portfolio of services
Q2 Fiscal 2019 Results Meeting the demand for digital with an integrated end-to-end portfolio of services • Continued growth in demand for consulting and systems integration work – accounting for 71% of Q2 bookings Management Systems of IT & integration • Opportunities to convert more new business b
Slide 10: Cash provided by operating activities
Q2 Fiscal 2019 Results Cash provided by operating activities Q2 F2019 $462M 15.1% $1.66 CASH PROVIDED BY % OF REVENUE PER SHARE OPERATING ACTIVITIES TRAILING TWELVE MONTHS $1.5B 12.8% $5.34 Cash from operating activities per diluted share (non-GAAP) is a measure of our cash provided by operating act
Slide 11: Revenue and adjusted EBIT segmentation
Q2 Fiscal 2019 Results Revenue and adjusted EBIT segmentation Revenue: $3.1B Adjusted EBIT: $454M Constant currency revenue growth: 4.7% Margin: 14.8% Central and Asia Pacific Eastern Europe 5% Asia Pacific 8% Western and 9% Central and Southern Europe Western and Eastern Europe 15% U.K. 4% 11% Sout
Slide 12: Adj. EBIT of $454 million, margin of 14.8%
Q2 Fiscal 2019 Results Adj. EBIT of $454 million, up $30 million; margin of 14.8%, up 40 bps from Q2-F18 In millions Adjusted EBIT $600 Adjusted EBIT margin 15% $500 14.4% 14.8% 12% $400 9% $300 6% $200 3% $100 $0 0% Adjusted EBIT and adjusted EBIT margin are non-GAAP measures for which we provide t
Slide 13: Net earnings of $318M – diluted EPS of $1.14
Q2 Fiscal 2019 Results Net earnings of $318M – diluted EPS of $1.14, up 21.3% from Q2-F2018 $1.20 12% GAAP Diluted EPS GAAP Net Margin $1.00 10.4% 10% 9.3% $0.80 8% $0.60 6% $0.40 4% $0.20 2% $0.00 0% © CGI Inc. 13
Slide 14: Net earnings excluding specific items of $324M
Q2 Fiscal 2019 Results Net earnings excluding specific items of $324M – diluted EPS of $1.17, up 12.5% from Q2-F2018 $1.40 12% Diluted EPS - excl. specific items 10.6% $1.20 Net Margin - excl. specific items 10% 10.3% $1.00 8% $0.80 6% $0.60 4% $0.40 2% $0.20 $0.00 0% Net earnings, net earnings marg
Slide 15: $1.5 billion in cash provided by operating activities
Q2 Fiscal 2019 Results $1.5 billion in cash provided by operating activities or 12.8% of TTM revenue In millions % revenue $1,600 TTM Cash flow from operations (CFO) 16% TTM CFO (% of revenue) $1,400 14% $1,200 13.2% 12.8% 12% $1,000 10% $800 8% $600 6% $400 4% $200 2% $0 0% © CGI Inc. 15
Slide 16: Net debt at $1.6B or 17.4% net debt to capitalization
Q2 Fiscal 2019 Results Net debt at $1.6B or 17.4% net debt to capitalization ratio In millions $3,500 45% Net debt Net debt to cap ratio 40% $3,000 35% $2,500 30% $2,000 25% $1,500 20% 17.5% 17.4% 15% $1,000 10% $500 5% $0 0% Net debt and net debt to capitalization ratio are Non-GAAP measures for wh
Slide 17: ROE and ROIC year-over-year
Q2 Fiscal 2019 Results ROE up 170 bps and ROIC up 140 bps year-over-year 25% ROE ROIC 20% 17.7% 16.0% 15% 14.9% 13.5% 10% 5% 0% ROE (Return on Equity) and ROIC (Return on Invested Capital) are non-GAAP measures for which we provide more details in the Q2 F2019 MD&A. © CGI Inc. 17
Slide 18: $600M all cash offer for Acando AB
$600M all cash offer for Acando AB Over $1.5B in liquidity still available for build and buy strategy Overview • Public company founded in 1981 and headquartered in Services Country Stockholm, Sweden 8% 2% 19% 14% • Enhances CGI presence in: • Stockholm, Sweden 51% 57% 22% • Oslo, Norway 27% • Hambu
Slide 19: Contact investor relations to continue the conversation
Contact investor relations to continue the conversation Lorne Gorber Mathieu Richard Executive Vice-President Director lorne.gorber@cgi.com mathieu.richard@cgi.com +1 (514) 841-3355 +1 (514) 415-3746 For more information: CGI.com/investors © CGI Inc. 19