Calian Group Ltd. · TSX:CGY
Calian — Q1 2025 Earnings Presentation
25 slides from Calian's earnings presentation, Feb 13, 2025
Slide 1: Conference Call Presentation Q1-25
Conference Call Presentation Q1-25 For the quarter ended December 31, 2024
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: Q1-25 Highlights
Q1-25 Highlights Q1 results aligned with expectations • Signed new contracts • Maintaining guidance Our core markets – Space, valued at $154M • On track to deliver Health, Cybersecurity and • Ended the quarter with our 8th consecutive Defence – are backed by a backlog of $1.1B year of double-digit s
Slide 4: Doubling Down on Defence Opportunity
Doubling Down on Defence Opportunity Significant macro tailwinds Pressure on Canada to Canada’s recent budget Political discussion around Ongoing conflicts in Europe increase spending from the increase for border security accelerating the timeline to new U.S. administration meet the 2% of GDP target
Slide 5: Go-To-Market Strategy in Defence
Go-To-Market Strategy in Defence Comprehensive military operational readiness portfolio Cybersecurity Solutions Healthcare Digital Solutions Solutions Operational Readiness Portfolio Training & Space & Terrestrial Simulation Communications & Connectivity Solutions Custom Manufacturing © 2024 Calian
Slide 6: Market Opportunity
Market Opportunity Defence and public safety – operational readiness portfolio National militaries International Organizations SOLUTIONS E Q U I P M E NT PE O PL E Operational Readiness Public Safety & National Portfolio Security Defence OEMs PRO D U CTS © 2024 Calian Group Ltd. 6
Slide 7: Defence Has Long Been a Key Market for Calian
Defence Has Long Been a Key Market for Calian Defence solutions = 44% of consolidated revenues in FY24 Annual Defence Revenues (in millions of $) 330 271 Strategic Initiatives: 228 235 • Strategic enabler for CAF 185 16% • Investments in technology • Geographical expansion • New senior hires • Launc
Slide 8: Recent Investments in Defence
Recent Investments in Defence Strengthening our footprint in Canada, Europe and the U.S. Takeaways Calian is a significant Calian has a proven track Calian’s operational Uniquely positioned to player in the defence record of successful global readiness portfolio stands respond to growing industry de
Slide 9: FY25 Q1 KPIs - Revenue & Adj. EBITDA
FY25 Q1 KPIs - Revenue & Adj. EBITDA Closed the quarter as expected Adj. EBITDA1,2 & Margin1,2 Revenues (in millions of $, except margin) (in millions of $) 747 752 100 92 89 1. Record Q1 revenues 659 90 2. Headwinds from contract 22.0% 582 69 70 80 518 70 delays, budget reductions 56 17.0% in CAF &
Slide 10: FY25 Q1 KPIs – Operating FCF & Capital Deployment
FY25 Q1 KPIs – Operating FCF & Capital Deployment $5M invested in share repurchases Operating FCF1,2 & Conversion1,2 Capital Deployment (in millions of $, except %) (in millions of $) 80 72 180% 1. Very active on the M&A 68 front 160% 55 70 55 140% 54 2. Targets have not met our 60 120% 44 39 intern
Slide 11: FY25 Q1 KPIs – Leverage and Cash Availability
FY25 Q1 KPIs – Leverage and Cash Availability Over $200M available to invest in growth Net Debt1,2/Adj. EBITDA1,2 Cash Availability (ratio) (in millions of $) <2.5x 232 214 207 217 200 Solid balance 0.6x 0.6x 0.6x sheet 0.3x 0.4x Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Unused cre
Slide 12: FY25 Q1 KPIs – Shareholder Value Creation
FY25 Q1 KPIs – Shareholder Value Creation We are yielding strong returns Adj. EBITDA1,2/Diluted Share OFCF1,2/Diluted Share Adj. EPS1,2/Diluted Share (in $) (in $) (in $) $7.68 $7.38 $6.07 $5.98 $6.02 $5.28 $5.68 $4.84 $4.57 $4.86 $4.57 $4.15 $4.15 $3.89 $3.81 2021 2022 2023 2024 LTM Q1-25 2021 2022
Slide 13: FY25 Guidance Maintained
FY25 Guidance Maintained Seeing positive momentum across our diverse markets Revenues Adj. EBITDA1,2 (in millions of $) (in millions of $) 96-106 800-880 92 747 659 12% 10% At the midpoint it 69 70 Mid point 582 Mid point growth 518 growth 56 represents double-digit growth 2021 2022 2023 2024 2025E
Slide 14: Closing Remarks
Closing Remarks Calian is well-positioned to achieve another record year © 2024 Calian Group Ltd. 14
Slide 15: Question Period
Question Period Kevin Ford Patrick Houston Jennifer CEO CFO McCaughey Director, Investor Relations © 2024 Calian Group Ltd. | 15
Slide 16: Appendix A – Reconciliation of Non-GAAP measures
Appendix A – Reconciliation of Non-GAAP measures © 2024 Calian Group Ltd. | 16
Slide 17: Reconciliation of Non-GAAP Measures – Adj. EBITDA
Reconciliation of Non-GAAP Measures – Adj. EBITDA Three months ended (in thousands of $) December 31, 2024 December 31, 20231 Net profit ($976) $5,525 Stock based compensation 1,091 1,190 Restructuring expense 692 - Depreciation and amortization 11,540 9,006 Mergers and acquisition costs 2,320 1,980
Slide 18: Reconciliation of Non-GAAP Measures – Adj. Net Profit
Reconciliation of Non-GAAP Measures – Adj. Net Profit Three months ended (in thousands of $, except # of shares and per share data) December 31, 2024 December 31, 20231 Net profit ($976) $5,525 Stock based compensation 1,091 1,190 Restructuring expense 692 - Mergers and acquisition costs 2,320 1,980
Slide 19: Reconciliation of Non-GAAP Measures – Operating FCF
Reconciliation of Non-GAAP Measures – Operating FCF Three months ended (in thousands of $, except per share amounts and %) December 31, 2024 December 31, 20231 Cash flows generated from operating activities (free cash flow) $4,382 $17,538 M&A costs included in operating activities 199 650 Change in
Slide 20: Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA
Reconciliation of Non-GAAP Measures – Net Debt/Adj. EBITDA (in thousands of $, except ratio) December 31, 2024 December 31, 20231 Cash 61,040 52,267 Debt facility 115,750 93,750 Net debt (net cash) 54,710 41,483 Trailing twelve month adjusted EBITDA 88,602 65,987 Net debt to adjusted EBITDA 0.6 0.6
Slide 21: Appendix B – OFCF Historical Adjustments
Appendix B – OFCF Historical Adjustments © 2024 Calian Group Ltd. | 21
Slide 22: OFCF – Historical Adjustments
OFCF1 – Historical Adjustments 2020 2021 2022 Q1-23 Q2-23 Q3-23 Q4-23 2023 Q1-24 Q2-24 Q3-24 Q4-24 2024 Cash flows generated from (2,755) 46,542 43,141 25,323 6,203 2,545 22,704 56,775 17,538 35,788 14,478 19,417 87,221 operating activities M&A costs included in 316 1,963 792 35 98 207 205 545 650 3
Slide 23: Appendix C – Adj. EPS Historical Adjustments
Appendix C – Adj. EPS Historical Adjustments © 2024 Calian Group Ltd. | 23
Slide 24: Adj. EPS – Historical Adjustments
Adj. EPS1 – Historical Adjustments 2020 2021 2022 Q1-23 Q2-23 Q3-23 Q4-23 2023 Q1-24 Q2-24 Q3-24 Q4-24 2024 Net profit 20,361 11,155 13,604 4,576 4,517 4,673 5,119 18,885 5,525 4,925 1,297 (568) 11,179 Share based 1,359 2,334 2,587 620 699 808 1,743 3,870 1,190 1,128 1,371 683 4,372 compensation Res
Slide 25: Thank you
Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations ir@calian.com