28 slides from Cgi Inc. Class A's earnings presentation, Nov 8, 2023
Slide 1: Fourth Quarter & Fiscal 2023
Fourth Quarter & Fiscal 2023 Financial results and highlights For the three and twelve months ended September 30, 2023 and 2022 November 8, 2023
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. Schindler and Steve Perron
George D. Schindler Steve Perron President and Chief Executive Vice-President and Executive Officer Chief Financial Officer © 2023 CGI Inc. 3
Slide 4: Financial highlights: Q4 F2023 vs Q4 F2022
Financial highlights: Q4 F2023 vs Q4 F2022 Revenue $3.51B ▲ 8.0% Constant currency growth1 ▲ 2.2% Earnings before income taxes $558M ▲ 14.8% Earnings before income taxes margin2 15.9% ▲ 90 bps Adjusted EBIT1 $573M ▲ 9.8% Adjusted EBIT margin1 16.3% ▲ 20 bps Net earnings $414M ▲ 14.4% Net earnings ma
Slide 5: CEO remarks
CEO remarks “CGI’s resilience and strong positioning—strategically, operationally, and financially—underpinned our team’s ability to deliver on our profitable growth plan for the fourth quarter and fiscal year 2023,” said George D. Schindler, President and Chief Executive Officer. “During Q4, client
Slide 6: Talent profile
Talent profile Consultants & Professionals 17.2% voluntary attrition (below industry Balanced 35% +1,500 85% delivery model Average) year-over-year are shareholders identify as female increase through our 61% Proximity +120 basis points year- Share Purchase Plan over-year A culture of ownership 39%
Slide 7: Revenue performance: Q4 F2023
Revenue performance: Q4 F2023 (in millions of dollars and % of revenue) Revenue mix $3,507 +8.0% +2.2% $3,247 in constant currency1 Q4 F2022 Q4 F2023 © 2023 CGI Inc. 7 1) Constant currency growth is a non-GAAP measure for which we provide the reconciliation to the closest IFRS measure in the F2023 M
Slide 8: Financial highlights: Q4 F2023
Financial highlights: Q4 F2023 (in millions of dollars and % of revenue) Earnings before income Net earnings Cash provided by operating Diluted EPS taxes and margin1 and margin1 activities and as a % of revenue1 $1.76 $414 $629 +14.8% $558 +14.4% +16.6% 28.6% $486 $362 $1.51 $489 15.0% 15.9% 11.2% 1
Slide 9: Demand for end-to-end services driving bookings
Demand for end-to-end services driving bookings Book-to-bill ratio 114% for the last twelve months Q4 F2023 bookings1 Q4 F2023 Book-to-bill ratio1 Bookings by contract type Bookings by service type Managed IT and business process services 37% New business 40% 60% 63% Extensions, renewals Business an
Slide 10: Segmented Results
Segmented Results Q4 F2023 Q4 F2022 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe 606.5 78.1 12.9% 547.5 55.9 10.2% U.S. Commercial and State Government 567.3 94.6 16.7% 557.2 85.4 15.3% Canada 509.4 127.4 25.0% 496.0 122.1 24.6% U.S. Federa
Slide 11: Financial highlights: F2023 vs F2022
Financial highlights: F2023 vs F2022 Revenue $14.30B ▲ 11.1% Constant currency growth1 ▲ 8.0% Earnings before income taxes $2.20B ▲ 11.7% Earnings before income taxes margin2 15.4% ▲ 10 bps Adjusted EBIT1 $2.31B ▲ 10.8% Adjusted EBIT margin1 16.2% - - Net earnings $1.63B ▲ 11.3% Net earnings margin2
Slide 12: Segmented Results
Segmented Results F2023 F2022 Revenue Adjusted EBIT1 Revenue Adjusted EBIT1 In millions of CAD $ $ % $ $ % Western and Southern Europe 2,605.9 355.6 13.6% 2,152.1 289.7 13.5% U.S. Commercial and State Government 2,278.0 339.4 14.9% 2,075.3 304.8 14.7% Canada 2,064.7 477.5 23.1% 1,981.4 463.3 23.4% U
Slide 13: Other Financial Metrics
Other Financial Metrics Cash from operating activities Capital structure ratios Q4 F2023 Last 12 months Return on Invested Capital 2 17.9% 14.8% ▲ versus 1 5 . 7 % i n F 2 0 2 2 of revenue1 of revenue1 Net Debt to Capitalization 2 Prior year period $489M Prior year period $1.9B ▼ versus 2 8 . 8 % i
Slide 14: Revenue Trend (Quarterly)
Revenue Trend (Quarterly) Revenue of $3,507 million, year-over-year growth of 8.0% or 2.2%* on a constant currency basis In millions Revenue Growth $3,700 Constant currency growth* 8.0% Linear (Constant currency growth*) $3,600 $3,500 10.0% $3,400 $3,300 5.0% $3,200 $3,100 $3,000 0.0% $2,900 2.2% $2
Slide 15: Earnings Before Income Taxes and Margin Trend (Quarterly)
Earnings Before Income Taxes and Margin* Trend (Quarterly) Earnings before incomes taxes of $558 million; margin of 15.9%, up 90 basis from Q4 F2022 In millions Earnings before income taxes 15.9% $600 Earnings before income taxes margin* 16.0% $500 15.0% $400 14.0% $300 13.0% $200 12.0% $100 11.0% $
Slide 16: Adjusted EBIT and Margin Trend (Quarterly)
Adjusted EBIT* and Margin* Trend (Quarterly) Adjusted EBIT of $573 million; margin of 16.3%, up 20 basis from Q4 F2022 In millions Adjusted EBIT* 16.3% Adjusted EBIT margin* 17.0% $600 16.5% $500 16.0% 15.5% $400 15.0% 14.5% $300 14.0% $200 13.5% 13.0% $100 12.5% $0 12.0% © 2023 CGI Inc. 16 * Adjust
Slide 17: Net Earnings Margin and Diluted EPS Trend (Quarterly)
Net Earnings Margin* and Diluted EPS Trend (Quarterly) Net earnings of $414 million – diluted EPS of $1.76, up 16.6% from Q4 F2022 Diluted EPS 11.8% $2.00 12% Net earnings margin* $1.80 11% $1.60 $1.40 10% $1.20 $1.00 9% $0.80 8% $0.60 $0.40 7% $0.20 $0.00 6% © 2023 CGI Inc. 17 * Net earnings margin
Slide 18: Net Earnings Margin and Diluted EPS Trend (Quarterly)
Net Earnings Margin* and Diluted EPS* Trend (Quarterly) Excluding specific items* Net earnings excluding specific items of $421 million – diluted EPS of $1.79 excluding specific items, up 14.7% from Q4 F2022 12.0% $2.00 12.0% Diluted EPS - excl. specific items* $1.80 Net earnings margin - excl. spec
Slide 19: Long-Term Debt and Lease Liabilities Trend
Long-Term Debt and Lease Liabilities* Trend Long-term debt and lease liabilities at $3.74 billion, down $0.23 billion from Q4 F2022 In millions Long-term debt and lease liabilities* 5,000 4,500 4,000 3,742.3 3,500 3,000 2,500 2,000 1,500 1,000 500 0 © 2023 CGI Inc. 19 *Long-term debt and lease liabi
Slide 20: Net Debt Trend
Net Debt* Trend Net debt at $2.13 billion or 20.4% net debt to capitalization ratio, down 840 basis points from Q4 F2022 In millions Net debt * $4,000 40% Net debt to capitalization ratio* $3,500 35% $3,000 30% 20.4% $2,500 25% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% © 2023 CGI Inc. 20 * Net
Slide 21: Revenue Trend (Annual)
Revenue Trend (Annual) Revenue of $14.30 billion, year-over-year growth of 11.1% or 8.0%* on a constant currency basis In millions Revenue Growth $15,000 Constant currency growth* 11.1% Linear (Constant currency growth*) $14,000 10.0% $13,000 $12,000 8.0% 5.0% $11,000 $10,000 0.0% $9,000 -5.0% $8,00
Slide 22: Earnings Before Income Taxes and Margin Trend (Annual)
Earnings Before Income Taxes and Margin* Trend (Annual) Earnings before incomes taxes of $2.20 billion; margin of 15.4%, up 10 basis from F2022 In millions Earnings before income taxes $2,400 17.0% Margin 15.4% $2,200 16.5% 16.0% $2,000 15.5% $1,800 15.0% $1,600 14.5% $1,400 14.0% $1,200 13.5% $1,00
Slide 23: Adjusted EBIT Trend (Annual)
Adjusted EBIT Trend (Annual) Adjusted EBIT of $2.31 billion; margin of 16.2%, stable when compared to F2022 In millions Adjusted EBIT* 16.2% $2,400 17.0% Adjusted EBIT margin * $2,200 16.5% 16.0% $2,000 15.5% $1,800 15.0% $1,600 14.5% $1,400 14.0% $1,200 13.5% $1,000 13.0% © 2023 CGI Inc. 23 * Adjus
Slide 24: Net Earnings Margin and Diluted EPS Trend (Annual)
Net Earnings Margin* and Diluted EPS* Trend (Annual) Net earnings of $1.63 billion – diluted EPS of $6.86, up 13.6% from F2022 $7.50 11.4% 12.0% Diluted EPS $7.00 Net Margin (GAAP) * $6.50 11.5% $6.00 11.0% $5.50 $5.00 10.5% $4.50 $4.00 10.0% $3.50 $3.00 9.5% $2.50 $2.00 9.0% $1.50 $1.00 8.5% $0.50
Slide 25: Net Earnings Margin and Diluted EPS Trend (Annual)
Net Earnings Margin* and Diluted EPS* Trend (Annual) Excluding specific items* Net earnings excluding specific items* of $1.68 billion – diluted EPS of $7.07 excluding specific items*, up 15.3% from F2022 $7.50 11.8% 12.0% Diluted EPS excluding specific items * $6.50 Net Margin excluding specific it
Slide 26: Cash from Operations Trend (Annual)
Cash from Operations Trend (Annual) Cash from operations of $2.11 billion, representing 14.8% of revenue In millions % revenue $2,500 20% Cash Flow from Operations (CFO) CFO (% of revenue) 14.8% 19% $2,000 18% 17% $1,500 16% 15% $1,000 14% 13% $500 12% 11% $0 10% © 2023 CGI Inc. 26
Slide 27: Annual ESG targets, progress and achievements
Annual ESG targets, progress and achievements* (as at September 30, 2022) Our goal: To be recognized by our stakeholders as an engaged, ethical, and responsible corporate citizen ENVIRONMENT SOCIAL GOVERNANCE Climate priority People priority • Data privacy and security • Operating under approved Bin
Slide 28: Contact our investor relations team to continue the conversation
Contact our investor relations team to continue the conversation Kevin Linder Senior Vice-President, Investor Relations kevin.linder@cgi.com +1-905-973-8363 Christina Leclerc Director, Investor Relations christina.leclerc@cgi.com +1-514-978-5448 IR@cgi.com cgi.com For more information: cgi.com/inves