27 slides from Cgi Inc. Class A's earnings presentation, Nov 9, 2022
Slide 1: Fourth Quarter & Fiscal 2022
Fourth Quarter & Fiscal 2022 Financial results and highlights For the three and twelve months ended September 30, 2022 and 2021 November 9, 2022
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 © 2022 CGI Inc. 3
Slide 4: Financial highlights: Q4 F2022
Financial highlights: Q4 F2022 vs Q4 F2021 Revenue $3.25B ▲ 8.0% Constant currency growth* ▲ 13.9% Adjusted EBIT* $522M ▲ 5.7% Adjusted EBIT margin* 16.1% ▼ (30 bps) Net earnings $362M ▲ 4.7% Net earnings margin* 11.2% ▼ (30 bps) Net earnings excluding specific items* $373M ▲ 7.6% Net earnings margi
Slide 5: CEO remarks
CEO remarks “I am very pleased with our team’s performance in the fourth quarter, delivering double-digit increases in both constant currency revenue and EPS through the successful execution of our build and buy profitable growth strategy” said George D. Schindler, President and Chief Executive Offi
Slide 6: Talent profile: Consultants & Professionals
Talent profile Consultants & Professionals 17.2% voluntary attrition (below industry 34% 84%* Balanced +12.5% Average) identify as female are shareholders delivery model year-over-year through our +70 bps year-over-year Share Purchase Plan net increase 62% Proximity Improving representation of A cul
Slide 7: Revenue performance: Q4 F2022
Revenue performance: Q4 F2022 Revenue mix $3,247 $3,007 +8.0% +13.9% in constant currency* Q4 F2021 Q4 F2022 Dollar figures in millions * Constant currency growth is a non-GAAP measure for which we provide the reconciliation to the closest IFRS measure in the F2022 MD&A © 2022 CGI Inc. 7
Slide 8: Financial highlights: Q4 F2022
Financial highlights: Q4 F2022 (in dollars and % of revenue) Adjusted EBIT Cash provided by operating Net earnings and margin, Diluted EPS and margin* activities* excluding specific items* excluding specific items* +5.7% $522 $527 -7.2% $373 $1.56 $493 +7.6% $489 +11.4% $347 11.5% 11.9% $1.40 16.4%
Slide 9: Demand for end-to-end services driving bookings
Demand for end-to-end services driving bookings Book-to-bill ratio 109% for F2022 Q4 F2022 bookings* Q4 F2022 Book-to-bill ratio* Bookings by contract type Bookings by service type Managed IT and business New business process services 37% 48% 52% 63% Extensions, renewals Business consulting, strateg
Slide 10: Segmented Results (quarterly)
Segmented Results (quarterly) Q4 F2022 Q4 F2021 Revenue Adjusted EBIT* Revenue Adjusted EBIT* In millions of CAD $ $ % $ $ % Western and Southern Europe 547.5 55.9 10.2% 458.6 64.2 14.0% U.S. Commercial and State Government 557.2 85.4 15.3% 485.7 78.3 16.1% Canada 496.0 122.1 24.6% 438.6 91.7 20.9%
Slide 11: Financial highlights: F2022
Financial highlights: F2022 vs F2021 Revenue $12.87B ▲ 6.1% Constant currency growth* ▲ 10.5% Adjusted EBIT* $2,087M ▲ 6.9% Adjusted EBIT margin* 16.2% ▲ 10 bps Net earnings $1,466M ▲ 7.1% Net earnings margin* 11.4% ▲ 10 bps Net earnings excluding specific items* $1,488M ▲ 8.2% Net earnings margin e
Slide 12: Segmented Results (full year)
Segmented Results (full year) F2022 F2021 Revenue Adjusted EBIT* Revenue Adjusted EBIT* In millions of CAD $ $ % $ $ % Western and Southern Europe 2,152.1 289.7 13.5% 1,917.8 269.4 14.0% U.S. Commercial and State Government 2,075.3 304.8 14.7% 1,800.7 281.2 15.6% Canada 1,981.4 463.3 23.4% 1,755.8 3
Slide 13: Cash provided by operating activities
Cash provided by operating activities Q4 F2022 F2022 $2.04 $7.68 per share* per share* 15.1% 14.5% of revenue of revenue P r i o r ye a r p e r i o d $ 5 2 7 M P r i o r ye a r p e r i o d $ 2 . 1 2 B *Cash provided by operating activities per diluted share is a key performance measure of our cash p
Slide 14: Capital Structure Ratios
Capital Structure Ratios Return on Invested Capital* Return on Equity* Net Debt to Capitalization* ▲ versus 1 4 . 9 % i n Q 4 F 2 0 2 1 ▲ versus 1 9 . 8 % i n Q 4 F 2 0 2 1 ▲ versus 2 6 . 6 % i n Q 4 F 2 0 2 1 * Net debt to capitalization and return on invested capital are non-GAAP measures for whic
Slide 15: Q4 and F2022 Build & Buy Profitable Growth Strategy
Q4 and F2022 Build & Buy Profitable Growth Strategy Q4: $103M Invested back into our business F2022: $374M Increasing Business acquisitions F2022: $572M* shareholder value Share buy-back Q4: $133M F2022: $913M *Net of cash acquired © 2022 CGI Inc. 15
Slide 16: F2022 Mergers and Acquisitions
F2022 Mergers and Acquisitions Closed Closed Closed Closed Closed Acquisition date: Acquisition date: Acquisition date: Acquisition date: Acquisition of control October 1, 2021 October 28, 2021 February 28, 2022 May 25, 2022 date: May 31, 2022 Segment: Western and Segment: Western and Segment: Weste
Slide 17: Revenue Trend (Quarterly)
Revenue Trend (Quarterly) Revenue of $3,247 million, year-over-year growth of 8.0% or 13.9% on a constant currency basis In millions Revenue 13.9% $3,300 Growth 15.0% $3,200 Constant currency growth* $3,100 8.0% 10.0% $3,000 $2,900 $2,800 5.0% $2,700 $2,600 $2,500 0.0% $2,400 $2,300 -5.0% $2,200 $2,
Slide 18: Adjusted EBIT Trend (Quarterly)
Adjusted EBIT Trend (Quarterly) Adjusted EBIT of $522 million; margin of 16.1%, down 30 basis from Q4 F2021 In millions Adjusted EBIT* $600 17.5% Adjusted EBIT margin* 16.1% 17.0% $500 16.5% $400 16.0% 15.5% $300 15.0% $200 14.5% 14.0% $100 13.5% $0 13.0% * Adjusted EBIT and adjusted EBIT margin are
Slide 19: Net Earnings Margin and Diluted EPS Trend (Quarterly)
Net Earnings Margin* and Diluted EPS* Trend (Quarterly) Net earnings of $362 million – diluted EPS of $1.51, up 8.6% from Q4 F2021 Diluted EPS $1.80 Net earnings margin* 14% 11.2% $1.60 12% $1.40 10% $1.20 $1.00 8% $0.80 6% $0.60 4% $0.40 2% $0.20 $0.00 0% * Net earnings margin and diluted earnings
Slide 20: Net Earnings Margin and Diluted EPS Trend (Quarterly), Excluding Specific Items
Net Earnings Margin and Diluted EPS Trend (Quarterly) Excluding specific items* Net earnings excluding specific items* of $373 million – diluted EPS of $1.56 excluding specific items*, up 11.4% from Q4 F2021 $1.80 Diluted EPS - excl. specific items* 12.5% 11.5% $1.60 Net earnings margin - excl. spec
Slide 21: Net Debt Trend
Net Debt Trend Net debt at $2.95 billion or 28.8% net debt to capitalization ratio In millions Net debt * $4,000 40% Net debt to capitalization ratio* $3,500 35% 28.8% $3,000 30% $2,500 25% $2,000 20% $1,500 15% $1,000 10% $500 5% $0 0% * Net debt and net debt to capitalization ratio are non-GAAP me
Slide 22: Adjusted EBIT Trend (Annual)
Adjusted EBIT Trend (Annual) Adjusted EBIT of $2,087 million; margin of 16.2%, up 10 basis from F2021 In millions Adjusted EBIT* 16.2% $2,200 17.0% Adjusted EBIT margin * 16.5% $2,000 16.0% $1,800 15.5% $1,600 15.0% 14.5% $1,400 14.0% $1,200 13.5% $1,000 13.0% * Adjusted EBIT and Adjusted EBIT margi
Slide 23: Net Earnings Margin and Diluted EPS Trend (Annual)
Net Earnings Margin* and Diluted EPS* Trend (Annual) Net earnings of $1,466 million – diluted EPS of $6.04, up 11.6% from F2021 $6.50 12.0% Diluted EPS 11.4% $6.00 Net Margin (GAAP) * 11.5% $5.50 $5.00 11.0% $4.50 $4.00 10.5% $3.50 10.0% $3.00 $2.50 9.5% $2.00 9.0% $1.50 $1.00 8.5% $0.50 $0.00 8.0%
Slide 24: Net Earnings Margin and Diluted EPS Trend (Annual), Excluding Specific Items
Net Earnings Margin* and Diluted EPS* Trend (Annual) Excluding specific items* Net earnings excluding specific items* of $1,488 million – diluted EPS of $6.13 excluding specific items*, up 12.9% from F2021 $7.00 12.0% Diluted EPS excluding specific items * 11.3% Net Margin excluding specific items *
Slide 25: Cash from Operations Trend (Annual)
Cash from Operations Trend (Annual) Cash from operations of $1,865 million, representing 14.5% of revenue In millions % revenue $2,500 20% Cash Flow from Operations (CFO) CFO (% of revenue) 19% $2,000 14.5% 18% 17% $1,500 16% 15% $1,000 14% 13% $500 12% 11% $0 10% © 2022 CGI Inc. 25
Slide 26: ESG targets, progress and achievements
ESG targets, progress and achievements : be recognized by our stakeholders as an engaged and responsible corporate citizen ENVIRONMENT SOCIAL GOVERNANCE ➢ Data privacy and security Climate Priority People Priority Approval of CGI’s Binding Corporate Rules in July 2021 (considered the ‘Gold’ standard
Slide 27: Contact our investor relations team
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