Alithya Group, Inc. Class A · TSX:ALYA
Alithya Group, Inc. Class A — Q3 F2022 Earnings Presentation
16 slides from Alithya Group, Inc. Class A's earnings presentation, Feb 10, 2022
Slide 1: Alithya reports continued growth and record revenues
F2022-Q3 Alithya reports continued growth and record revenues FEBRUARY 10 , 2022
Slide 2: Presenters
PAUL RAYMOND PRESIDENT AND CHIEF EXECUTIVE OFFICER CLAUDE THIBAULT CHIEF FINANCIAL OFFICER PRESENTERS F2022-Q3 February 10, 2022 1
Slide 3: Forward Looking Statements and Non-IFRS Measures
FORWARD LOOKING STATEMENTS AND NON-IFRS MEASURES Certain statements contained herein may constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995
Slide 4: Our acquisitions are catalysts for organic growth
OUR ACQUISITIONS ARE CATALYSTS FOR ORGANIC GROWTH 2011 2015 2017 2019 2021 MANAGEMENT BUY-OUT TELUS' PROFESSIONAL SWI MATRICIS R3D SERVICES RENEWABLE ENERGY, IOT, IA, AIOT IT MANAGEMENT SERVICES TELECOM & PUBLIC SECTOR FINANCE, BI & ANALYTICS & DIGITAL SOLUTIONS TRAVERCENT OSI R3D’s integration was
Slide 5: Vitalyst at a glance
U.S.-BASED VITALYST PROVIDES BEST-IN-CLASS EMPLOYEE EXPERIENCE AND TRANSFORMATIVE CHANGE ENABLEMENT VIA THE ON- DEMAND, SUBSCRIPTION- BASED ADAPTIVE LEARNING™ PROPRIETARY PLATFORM. 400 clients 165 professionals and potential to with a blue-chip in the U.S. supporting expand to Oracle Cloud customer
Slide 6: Our Q3 takeaways
OUR Q3 TAKEAWAYS INDUSTRY-LEADING GROWTH 1. CLIENTS 2. PEOPLE 3. INVESTORS 55% YoY growth 190 new hires Strong cash generation > 34% organic growth > 92% increase in new job > Record revenues of $109.7M > Bookings(1) of $125.2M openings > Record billable hours > Book-to-bill ratio(1) of 1.14 > R3D’s
Slide 7: New reputable partners we do business with
NEW REPUTABLE PARTNERS WE DO BUSINESS WITH WE WANT TO GET THE BEST THAT TECHNOLOGY HAS TO OFFER TO OUR CUSTOMERS F2022-Q3 February 10, 2022 6
Slide 8: Bookings evolution
BOOKINGS EVOLUTION 230 708.5 Part of the R3D acquisition Including the $600M estimated value of the two 10-year contracts signed 126.1 125.2 with Beneva and Québecor. 92.8 90.9 80.9 Last twelve months 62.3 > Bookings(1) (2) : $417.4M > Book-to-bill ratio(1) (2) : 1.05 Q1-F21 Q2-F21 Q3-F21 Q4-F21 Q1-
Slide 9: Quarterly performance
QUARTERLY PERFORMANCE F2022-Q3 F2021-Q3 Organic growth in all geographies 55.4% Revenues of $15.4M from the R3D Acquisition, and growth from the REVENUES $109.7M $70.6M two long-term contracts True organic growth of 35.1%, on a constant currency basis GROSS 38.3% Decreased gross margin in Canada fro
Slide 10: Long-term performance trend
LONG-TERM PERFORMANCE TREND Revenues Gross Margin (in millions of $) (in millions of $, except for margin percentages) 29.3% 30.7% 30.4% 28.6% 28.9% 28.9% 30.1% 27.5% 27.4% 27.0% 25.8% $28.3 $28.5 $28.3 $109.7 $23.5 $105.3 $21.2 $20.7 $20.2 $21.0 $20.4 $102.9 $20.4 $18.7 $72.2 $67.4 $66.2 $73.2 $70.
Slide 11: Long-term performance trend
LONG-TERM PERFORMANCE TREND THE ALITHYA PLAYBOOK (in millions of $) $7.0(2) $5.0 $4.5 Revenues $3.2 $3.5 $3.3 $3.3 > Leading organic growth $3.0 $2.0 $2.3 $0.8 > Accretive acquisitions to support profitable growth and x-selling > $600M three-year objective -1.8 -1.8 Gross Margin(3) -2.6 -2.6 -2.6 >
Slide 12: Liquidity and financial position
> Net cash from operating activities in Q3 0f $10.1M > Representing an increase $9.2M from $0.9M of net cash from operating activities for the same period last year > Conversion of $4.5M of Adjusted EBITDA(1) to $2.3M of cash flow from operating activities before working capital variations, i.e. ove
Slide 13: Liquidity and financial position
$100 8.0 $80 6.0 $60 4.0 $40 $20 2.0 $0 0.0 Q1-F20 Q2-F20 Q3-F20 Q4-F20 Q1-F21 Q2-F21 Q3-F21 Q4-F21 Q1-F22 Q2-F22 Q3-F22 TOTAL LONG-TERM DEBT (EXCL. LEASE LIAB.) NET BANK BORROWING TOTAL LONG-TERM DEBT / TTM ADJUSTED EBITDA RATIO > Total long-term debt of $61.6M, including current portion, a decreas
Slide 14: Liquidity and financial position – post Vitalyst
> Pro Forma Total Debt / Adjusted EBITDA(1) post Vitalyst acquisition of 2.6X when excluding lease liabilities > Reflecting historical profitability of target > Reflecting equity and sub-debt issued after end of Q3 > Steady deleveraging expected going forward, considering profitability of Alithya an
Slide 15: Leading the way for a sustainable future
ESG LEADING THE WAY FOR A SUSTAINABLE FUTURE > Articulating our Environmental, Social and Governance framework and priorities > Completed all external advisor Phase 1 recommendations in Q3 > Phase 2: Finalize our ESG framework and share with public in new fiscal year F2022-Q3 February 10, 2022 14
Slide 16: Questions
_F 2022-03 | QUESTIONS a: INTE