Calian Group Ltd. · TSX:CGY
Calian — Investor Presentation (November 2022)
41 slides from Calian's investor presentation, Nov 25, 2022
Slide 1: Investor Presentation
Investor Presentation November 25, 2022
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements Certain information included in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally ac
Slide 3: Overview of Calian
Overview of Calian
Slide 4: Calian - Snapshot
Calian - Snapshot 40 years 4,500 Ottawa $649M CGY History Workforce Head Office Market Cap TSX 30% REVENUE SEGMENTATION ITCS 26% Advanced Technologies Customers Geography Technology $582M 53% 29% 27% 2022 Revenues Commercial International Products 47% 71% 73% 16% Government Canada Services Learning
Slide 5: Key Milestones in 40-Year History
Key Milestones in 40-Year History 2021 Acquisition 1993 2015 Dapasoft/iSecurity 1982 2004 2019 Calian Technology Acquisition Strategic Health KevIn Ford Calian Bought deal public Ltd. Established Skywave Contract win for becomes announces offering of $80M at DND (HSSC) President and 4-segment Initia
Slide 6: Leadership Team
Leadership Team Kevin Ford Patrick Houston Michele Bedford Sean Hamer Sue Ivay Michael Muldner CEO CFO & Corporate Secretary CCO CTO CHRO CIO Gordon McDonald Patrick Thera Don Whitty Sasha Gera Health Advanced Technologies Learning ITCS Capable and experienced Leadership Team
Slide 7: Four-Piston Engine
Four-Piston Engine 30% 29% 26% 16% ITCS Health Advanced Technologies Learning $173M $167M $150M $92M 2022 Revenues 2022 Revenues 2022 Revenues 2022 Revenues • Consulting Services • Digital Health Technologies • Space • Military Training & Synthetic • IT Solutions Provider • Health Solutions & Servic
Slide 8: Four Pillars of Growth
Four Pillars of Growth 5% 5% 10% Organic Growth + Acquisitive Growth = Target Growth 1 2 3 4 Customer Retention Customer Diversification Innovation Continuous Improvement Through continued delivery Through continued Through continued investment Through continued leverage of excellence, each segment
Slide 9: Executing on our Growth Objective
Executing on our Growth Objective
Slide 10: Growing Revenues, Profitability & Margins
Growing Revenues, Profitability & Margins Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $, except margin) (in millions of $, except margin) (in millions of $) 582 180 169 40.0% 70 66 160 60 22.0% 518 52 140 127 35.0% 432 50 120 17.0% 343 89 29.1% 30.0% 40 37 305 100 75 27 11.
Slide 11: Diversifying Revenue Streams
Diversifying Revenue Streams Geography Offering Customer 20% 19% 25% 22% 18% 20% 25% 27% 29% 33% 32% 31% 47% 49% 53% 80% 81% 75% 78% 82% 80% 75% 73% 71% 67% 68% 69% 53% 51% 47% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Canada International Service Product Government
Slide 12: Surpassing 10% Annual Revenue Growth Objective
Surpassing 10% Annual Revenue Growth Objective Acquisitive Revenue Growth Total Revenue Growth Organic Revenue Growth (in %) (in %) (in %) 19% 21% 26% 12% 20% 11% 12% 12% 8% 8% 7% 5% 5% 3% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 -6% Lapping tough year in Health and
Slide 13: Delivering on Guidance
Delivering on Guidance Revenues Adj. EBITDA1 Adj. Net Profit1 (in millions of $) (in millions of $) (in millions of $) 630-680 70-75 46-50 582 518 66 44 432 52 37 343 37 24 27 19 2019 2020 2021 2022 2023E 2019 2020 2021 2022 2023E 2019 2020 2021 2022 2023E 1) This is a non-GAAP measure. Please refer
Slide 14: Deploying Capital Effectively
Deploying Capital Effectively
Slide 15: Generating Increasing Operating FCF
Generating Increasing Operating FCF Adj. EBITDA2 Operating Free Cash Flow (OFCF)1&2 OFCF Conversion1&2 (in millions of $) (in millions of $) (in %) 70 66 76% 47 72% 60 66% 52 63% 50 35 50% 40 37 28 30 25 27 17 13 20 10 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2) T
Slide 16: Deploying Capital to Maximize Shareholder Return
Deploying Capital to Maximize Shareholder Return Acquisitions Dividends Capex1 (in millions of $) (in millions of $) (in millions of $) 13 66 12 8 7 10 7 49 9 9 6 5 29 21 5 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 1) Capex = Equipment and application software + Capi
Slide 17: Completing EBITDA Accretive Acquisitions
Completing EBITDA Accretive Acquisitions TRANSACTION VALUE DATE ACQUISITION SEGMENT GEOGRAPHY (in millions, including potential earnouts) Q2-22 Computex ITCS U.S. $38.0 Q1-22 SimFront Learning Canada $15.0 Q2-21 Dapasoft ITCS Canada $83.0 Q2-21 InterTronic Advanced Technologies Canada $22.0 Q1-21 Ca
Slide 18: Well Positioned for the Future
Well Positioned for the Future
Slide 19: Maintaining a Strong Balance Sheet
Maintaining a Strong Balance Sheet Total Debt Cash & Cash Equivalents Net Liquidity (in millions of $) (in millions of $) (in millions of $) 79 159 13 115 8 43 84 62 24 22 44 17 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 1) Net Liquidity= Unused portion of credit line
Slide 20: Driving Future Revenues
Driving Future Revenues Backlog New Contract Signings R&D Investments1 (in billions of $) (in millions of $) (in millions of $) 699 5.9 1.29 5.5 5.5 1.19 1.31 1.27 1.14 492 442 447 3.2 3.2 270 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 1) R&D investments = R&D expense
Slide 21: Gaining Momentum From the Street
Gaining Momentum From the Street CGY $80.00 400,000 $55.93 TSX Close 350,000 $70.00 300,000 8 $60.00 $51.99 Analysts 250,000 52-week Low $50.00 200,000 11.6M 150,000 $72.11 $40.00 # Shares 52-week High 100,000 $30.00 50,000 19,641 $649M $20.00 0 Avg. Daily Volume 2-Oct-17 2-Apr-18 2-Oct-18 2-Apr-19
Slide 22: Why Invest in Calian?
Why Invest in Calian?
Slide 23: Investment Value Proposition
Investment Value Proposition 1 REVENUE DIVERSIFICATION 6 HIGH FCF CONVERSION RATE 2 STRONG BALANCE SHEET 7 SOLID BACKLOG 3 SUCCESSFUL M&A STRATEGY 8 FOCUS ON ORGANIC GROWTH 4 EXPANDING MARGINS 9 GROWING R&D INVESTMENTS 5 POSTIVE TRENDS IN END MARKETS 10 10 AMPLE DRY POWDER TO GROW Established Manage
Slide 24: Appendix – 4 Segments
SN CALIAN . Appendix — 4 Segments
Slide 25: Health – Snapshot
Health – Snapshot 29% Canada, U.S. 0% / 100% $707M FY22 % Revenue Geography FY22 Product/Service FY22 Backlog 1 2 3 What We Do Digital Health Health Solutions & Pharmaceutical Solutions Technologies Services • Health Enterprise Resource • Clinical Services • Contract Research Planning (ERP) Platform
Slide 26: Health – Financial Performance
Health – Financial Performance Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 195 55.0 40 50.0% 30.0% 47.8 34.8 163 167 45.0% 35 45.0 41.6 25.0% 40.0% 30 28.3 35.0 32.4 35.0% 23.4 116 25 20.0% 30.0% 18.5 99
Slide 27: Advanced Technologies – Snapshot
Advanced Technologies – Snapshot 26% International 62% / 38% $160M FY22 % Revenue Geography FY22 Product/Service FY22 Backlog 1 2 3 What We Do Space Defence Terrestrial • Communication & Space • Aerospace & Defence • Wired & Terrestrial Wireless Exploration Ground Systems Electronics Products • Sate
Slide 28: Advanced Technologies – Financial Performance
Advanced Technologies – Financial Performance Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 167 50.0 25.0 30.0% 150 45.0 41.6 43.3 50.0% 21.0 20.9 20.7 153 40.0 20.0 17.7 25.0% 34.0 40.0% 16.5 35.0 30.6 99
Slide 29: ITCS – Snapshot
ITCS – Snapshot 30% Canada, U.S. 36% / 64% $97M FY22 % Revenue Geography FY22 Product/Service FY22 Backlog 1 2 3 What We Do 24x7 Managed IT & Consulting Services IT Solution Provider Cyber Services • Cloud Strategy / Migration • Enterprise Architecture • MDR (Managed Detection and Response) • Applic
Slide 30: ITCS – Financial Performance
ITCS – Financial Performance Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 173 70.0 50.0%35.0 25.0% 61.1 29.5 45.0% 60.0 30.0 40.0% 20.0% 50.0 35.3% 35.0%25.0 17.1% 40.0 30.0%20.0 15.0% 82 24.3% 25.0% 12.1
Slide 31: Learning – Snapshot
Learning – Snapshot 16% Canada, Europe 4% / 96% $328M FY22 % Revenue Geography FY22 Product/Service FY22 Backlog 1 2 3 What We Do Military Training & Synthetic Digital Learning Solutions Emergency Management Training Simulation Env • Exercise Design, Development • Learning Management • Risk Assessme
Slide 32: Learning – Financial Performance
Learning – Financial Performance Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 92 25.0 23.3 50.0% 18.0 16.9 30.0% 45.0% 16.0 75 20.0 17.3 40.0% 14.0 25.0% 12.4 62 63 35.0% 58 12.0 15.0 12.5 12.5 30.0% 20.0
Slide 33: Appendix – Q4-22 Results
SN CALIAN . Appendix — Q4-22 Results
Slide 34: Q4-22 Consolidated Results
Q4-22 Consolidated Results $161M $1.3B -11% 36% New Contract Signings Backlog Organic Growth Acquisitive Growth Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 60 40.0% 150 161 20.0 19.1 50 22.0% 142 50 46 1
Slide 35: Q4-22 Revenue Diversification
Q4-22 Revenue Diversification Geography Technology Customer 22% 23% 22% 26% 23% 22% 29% 33% 40% 34% 49% 48% 48% 51% 61% 78% 77% 78% 74% 77% 78% 71% 67% 60% 66% 51% 52% 52% 49% 39% Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Canada International Service P
Slide 36: Q4-22 Health
Q4-22 Health $35M $707M -11% 0% New Contract Signings Backlog Organic Growth Acquisitive Growth Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $, except margin) (in millions of $, except margin) (in millions of $) 10.0 40.0% 35.0% 14.0 9.0 44 42 45 7.9 8.0 30.0% 40 12.0 11.1 1
Slide 37: Q4-22 Advanced Technologies
Q4-22 Advanced Technologies $60M $160M -31% 0% New Contract Signings Backlog Organic Growth Acquisitive Growth Gross Profit & Margin Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $, except margin) (in millions of $) 45.0% 7.0 12 11.3 11.2 11.2 43 10.7 27.0% 41 40
Slide 38: Q4-22 ITCS
Q4-22 ITCS $56M $97M 12% 185% New Contract Signings Backlog Organic Growth Acquisitive Growth Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $, except margin) (in millions of $, except margin) (in millions of $) 69 30 65.0% 14.0 35.0% 12.4 25.1 60.0% 25 12.0 49 55.0% 30.0% 19.
Slide 39: Q4-22 Learning
Q4-22 Learning $10M $328M 8% 16% New Contract Signings Backlog Organic Growth Acquisitive Growth Gross Profit & Margin Adj. EBITDA1 & Margin1 Revenues (in millions of $, except margin) (in millions of $) (in millions of $, except margin) 8.0 6.0 40.0% 5.4 25 6.8 32.0% 23 7.0 5.0 22 22 5.7 5.9 35.0%
Slide 40: Q4-22 Balance Sheet
Q4-22 Balance Sheet Total Debt Cash & Cash Equivalents Net Liquidity (in millions of $) (in millions of $) (in millions of $) 159 25 79 147 67 124 59 114 115 51 43 8 8 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 1) Net Liquidity= Unused portion of credit
Slide 41: Thank you
See CALIAN . Thank you ir@calian.com