19 slides from Cgi Inc. Class A's earnings presentation, Apr 27, 2016
Slide 1: Second Quarter Fiscal 2016 Results
SECOND QUARTER FISCAL 2016 RESULTS April 27, 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: Presenters: Michael E. Roach and François Boulanger
MICHAEL E. FRANÇOIS ROACH BOULANGER President and Executive Vice-President and Chief Executive Officer Chief Financial Officer 3
Slide 4: Q2-F2016: Results
Q2-F2016: Results vs Q2 F2015 Revenue $2.8B 5.7% Adjusted EBIT $391M 7.6% Adjusted EBIT margin 14.2% 20 bps Net earnings $283M 12.6% Net earnings margin 10.3% 60 bps Diluted EPS $0.90 15.4% Excluding specific items, net earnings were $268 million and diluted EPS was $0.86 * Specific items excluded i
Slide 5: New contract awards
New contract awards Q2 bookings up $481 million; high quality backlog of $21 billion Q2 F2016 $2.7 billion 100% book-to-bill TRAILING TWELVE MONTHS $11.0 billion 104% book-to-bill 5
Slide 6: Cash provided by operating activities
Cash provided by operating activities Q2 F2016 $251 million $0.80 per diluted share TRAILING TWELVE MONTHS $1.2 billion 11.8% of revenue $3.92 per diluted share 6
Slide 7: Revenue trend continues improving
Revenue trend continues improving Year-over-year at constant currency 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% -8% 7
Slide 8: Q2 F2016: Bookings distribution
Q2 F2016: Bookings distribution Bookings of $2.7 billion; book-to-bill of 100% F G A E D A B E B A A B C D C B Contract Type Service Type Segment Vertical Markets A. Extensions and A. Systems integration A. Nordics 20% A. Government 35% renewals 56% and consulting 61% B. U.S. 20% B. MRD 25% B. New b
Slide 9: Q2 F2016: Revenue distribution
Q2 F2016: Revenue distribution Improving mix of high quality revenue G E F A D A B A.1 E A D B C A.2 C B Service Type Client Geography Vertical Markets A. Management of IT and A. U.S. 29% A. Government 33% business functions 55% B. U.K. 15% B. MRD 23% 1. IT services 44% C. Canada 14% C. Financial se
Slide 10: Revenue and EBIT segmentation
Revenue and EBIT segmentation Well balanced profitability across North America and Europe Adjusted EBIT: $391M Revenue: $2.8B Margin: 14.2% 5% 6% 11% 8% 27% G A. U.S. 31% F G A B. Canada 11% F C. Nordics A 13% E E D. France D B E. U.K. D C F. ECS 11% B 14% C 14% G. Asia Pacific 12% 21% 16% 10
Slide 11: Improving profitability
Improving profitability Adj. EBIT at $391 million; margin expands by 20 points in Q2 F2016 In millions Logica integration $600 14.9% 16% 14.7% 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 EBIT i
Slide 12: Improving profitability
Improving profitability Net earnings margin returning to pre-acquisition level $1.00 15% Logica integration $0.80 10.7% 10.3% 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% 12
Slide 13: Cash provided by operating activities
Cash provided by operating activities On a trailing twelve months (TTM) basis In millions % revenue $1,600 Logica integration 18% 16.6% $1,400 16% 14.9% 13.9% 14% $1,200 12.5% 12.5% 12.2% 11.8% 12% $1,000 9.5% 10% TTM Cash flow from operations (CFO) $800 TTM CFO (% of revenue) 8.9% 8% $600 6.6% 6% $
Slide 14: 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% Share repurchase 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% 19.4% $1,000 15% 10% $500 5% $0 0% 14
Slide 15: Debt maturity schedule
Debt maturity schedule Maintaining balance and flexibility to capitalize on strategic opportunities In millions $500 $454 $450 $400 $389 $350 $298 $300 $262 $250 $215 $200 $150 $110 $100 $65 $65 $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% 15% 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: Share buyback program update
Share buyback program update Q2 FISCAL 2016 9.1 million shares purchased for cancellation Investment of $509 million Average price of $55.73 17
Slide 18: Income tax expense impact on EPS
Income tax expense impact on EPS $ / share $0.92 Tax rate +1.3% $0.90 in Q2-F2016 $0.88 ($0.04) $0.02 $0.86 $0.90 $0.84 $14.4 million tax $0.88 adjustment $0.86 $0.82 $0.80 Q2-F2016 Net Less : Tax Q2-F2016 Net Q2-F2015 vs Net Earnings at earnings adjustment Earnings ex- Q2-F2016 tax constant income
Slide 19: 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