23 slides from Cgi Inc. Class A's earnings presentation, Nov 9, 2016
Slide 1: Fourth Quarter and Fiscal 2016 Results
FOURTH QUARTER AND FISCAL 2016 RESULTS November 9, 2016 © 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 that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United
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: F2016: Results
F2016: Results Net earnings top a billion dollars; Net margin reach 10% vs F2015 Revenue $10.7B 3.9% Adjusted EBIT $1.6B 7.1% Adjusted EBIT margin 14.6% 40 bps Net earnings excluding specific items* $1.1B 7.6% Net earnings margin* 10.1% 30 bps Diluted EPS excluding specific items* $3.46 10.5% Cash f
Slide 5: Q4 F2016: Results
Q4 F2016: Results vs Q4 F2015 Revenue (growth @ cc) $2.6B 2.8% Adjusted EBIT $395M 4.3% Adjusted EBIT margin 15.3% 60 bps Net earnings excluding specific items* $274M 5.4% Net earnings margin* 10.6% 50 bps Diluted EPS excluding specific items* $0.89 8.5% Cash flow from operations $402M -11.0% * Spec
Slide 6: Contract awards
Contract awards High quality bookings push backlog to $21 billion Q4 F2016 $2.9 billion 111% book-to-bill FISCAL 2016 $11.7 billion 110% book-to-bill 6
Slide 7: Cash provided by operating activities
Cash provided by operating activities Q4 F2016 $402 million 15.6% of revenue $1.30 per diluted share FISCAL 2016 $1.3 billion 12.5% of revenue $4.26 per diluted share 7
Slide 8: Fiscal 2016
FISCAL 2016
Slide 9: F2016: Bookings distribution
F2016: Bookings distribution Bookings of $11.7 billion ; book-to-bill of 110% F G E A D E A B A A B C D B C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. U.S. 25% A. Government 33% renewals 57% and consulting 53% B. Canada 21% B. MRD 30% B. New bus
Slide 10: F2016: Revenue distribution
F2016: Revenue distribution Improving mix of high quality revenue G E A D F A B i. E A D B C ii. C B Service Type Client Geography Vertical Markets A. Management of IT and business A. U.S. 28% A. Government 34% functions (outsourcing) 54% B. Canada 15% B. MRD 23% i. IT services 44% C. U.K. 15% C. Fi
Slide 11: F2016: Revenue and EBIT segmentation
F2016: Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $1.6B Revenue: $10.7B Margin: 14.6% 5% 6% 11% 8% 27% A. U.S. G 31% G B. Canada 10% F F A C. Nordics E A 13% E D. France D B E. U.K. 11% D C B F. ECS C 14% G. Asia Pacific 14% 12% 22% 16% A
Slide 12: Improving profitability
Improving profitability Adjusted EBIT of $1.5 billion demonstrates operational strength In millions Logica integration $1,750 16% 14.6% Adjusted EBIT 14.2% 13.7% Adjusted EBIT margin 14% $1,500 12.7% 12.9% 12.0% 11.6% 11.5% 11.2% 12% $1,250 10.7% 10% 8.9% $1,000 8% $750 $1,560 $1,457 $1,357 6% $500
Slide 13: Improving profitability
Improving profitability Net earnings margin returning to pre-acquisition level $3.50 Logica integration 12% Diluted EPS (GAAP) 10.4% Net Margin (GAAP) 10.0% $3.00 9.7% 9.5% 10% $2.50 8.3% 8.2% 7.9% 8% $2.00 6.4% 6% $3.42 $1.50 $3.04 4.5% 4.2% $2.69 4% $1.00 $1.65 2.8% $1.44 $1.24 2% $0.50 $0.92 $1.0
Slide 14: Cash provided by operating activities
Cash provided by operating activities Disciplined focus and collection generates more than $1.3 billion $1,400 Logica integration 18% Cash Flow from Operations (CFO) CFO (% of revenue) 16.5% 16% $1,200 14.8% 14.8% 14% 12.9% $1,000 13.5% 12% 12.5% 12.5% $800 11.2% 10% 9.6% $1,333 8.8% $1,289 8% $600
Slide 15: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $500 $459 $450 $394 $400 $350 $302 $300 $263 $250 $200 $150 $112 $100 $66 $66 $66 $50 $0 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Excluding capital leases and asset financing
Slide 16: ROE and ROIC trends
ROE and ROIC trends Delivering superior returns over time 25% Logica integration ROE ROIC 20% 17.2% 15% 14.5% 10% 8.5% 7.5% 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. Data prior to F2011 is presented under
Slide 17: Fourth Quarter F2016
FOURTH QUARTER F2016
Slide 18: Q4 F2016: Revenue and EBIT segmentation
Q4 F2016: Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $395M Revenue: $2.6B Margin: 15.3% 6% 7% 11% 8% 28% G A. U.S. 32% F 7% G A B. Canada F C. Nordics E A E 13% D. France 11% D D B E. U.K. C F. ECS C B 13% 15% G. Asia Pacific 11% 24% 14%
Slide 19: Revenue trend returns to profitable growth
Revenue trend returns to profitable growth Year-over-year at constant currency 3% 2.8% 2% 1% 0.6% 0% -1.0% -1% -1.9% -1.8% -2% -2.3% -3.1% -3% -3.4% -3.5% -3.5% -3.9% -4% -5% -6.0% -6% -7% 19
Slide 20: Improving profitability
Improving profitability Adj. EBIT at $395 million; margin expands by 60 points in Q4 F2016 In millions Logica integration $600 15.3% 16% 14.7% 14.9% 14.7% 14.0% 14.2% 13.8% 14% $500 12.7% 12.6% 12% 10.4% $400 10% $300 8.8% 8% Adjusted EBIT 7.1% 6% $200 Adjusted EBIT margin 4% $100 2% $0 0% Adjusted
Slide 21: Improving profitability
Improving profitability Net earnings margin returning to pre-acquisition level $1.00 15% Logica integration $0.80 10.7% 10.3% 10.6% 9.9% 9.7% 8.6% 9.0% 10% 8.5% $0.60 5.7% 6.9% 4.5% $0.40 5% $0.20 0% $0.00 -$0.20 -5% Diluted EPS (GAAP) Net Margin (GAAP) -$0.40 -10% -$0.60 -10.4% -$0.80 -15% 21
Slide 22: Net debt
Net debt Net debt to cap well within our comfort zone In millions Logica $3,500 50% Net debt 46.5% acquisition Net debt to cap ratio 43.0% 45% $3,000 39.6% 40% 35.6% $2,500 35% 30.6% 28.7% 27.6% 30% $2,000 26.6% 24.4% 23.8% 25% 21.7% $1,500 20% 15.8% 19.4% $1,000 15% 10% $500 5% $0 0% 22
Slide 23: 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 Coordinator samantha.taccone@cgi.com +1 514-415-3123 For more information: CGI