First Quarter Fiscal 2016

Investment profile (as of Decemer 2015)

At CGI, our goal is to be recognized as an investment of choice. We have a passion for running a competitive and financially strong business. Since 1976, we've maintained best practices in managing and measuring how we create long-term value, resulting in consistent performance, no matter the economic environment.

Stock overview

  • TSX: GIB.A
  • NYSE: GIB
  • Fiscal year end: September 30

Company overview

Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 65,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).

Q1-F2016 year-over-year highlights

  • Revenue of $2.7 billion, up 5.6%; 
  • Bookings of $3.2 billion, or 119.2% of revenue;
  • Backlog of $21.5 billion, up $1.3 billion;
  • Adjusted EBIT of $384.1 million, up 11.6%;
  • Adjusted EBIT margin of 14.3%, up 80 basis points;
  • Net earnings of $264.9 million ex-items*, up 12.1%;
  • Net earnings margin of 9.9% ex-items*, up 60 basis points;
  • Diluted EPS of 84 cents ex-items*, up 13.5%;
  • Cash provided by operating activities of $328.2 million or 12.2% of revenue;
  • Net debt of $1.6 billion, down $350.8 million; and, 
  • Return on equity of 16.9%.

*Specific items excluded in Q1-F2016: $21.2 million in restructuring costs net of tax and a $5.9 million tax adjustment.

Revenue distribution

  • Service type:

55% Management of IT and business functions (outsourcing)

- IT services 45%
- Business process services 10%

45 % Systems integration and consulting

  • Client geography:

28%     United States
15%     U.K.
14%     Canada
13%     France
  8%     Sweden
  6%     Finland
16%     Rest of the world

  • Vertical markets:

34%   Government
23%   Manufacturing, retail and distribution
20%   Financial services
15%   Telecommunications and utilities
  8%   Health

Competitive strengths

CGI's competitive strengths provide an enhanced value proposition for clients. CGI combines strategic and technical expertise in five high growth vertical markets. It provides flexibility and cost competitiveness through its end-to-end service offerings and global delivery model. It achieves client intimacy through its metro market approach and a strong local presence. It consistently provides high quality service through the application of its management frameworks.

Enhanced value proposition

  • End-to-end IT services
  • Deep industry expertise (five verticals)
  • Unique global delivery model
  • Quality delivery track record
  • Flexible client partnerships


Our Build and Buy profitable growth strategy

Investment profile
Organic growth Growth by acquisitions
Systems integration
contracts and
projects
Outsourcing
contracts
Niche market
acquisitions
Transformational
acquisitions
  • Extend service offerings to existing clients
  • Win new contracts and renewals
  • Develop new client relationships
  • Grow pipeline of outsourcing proposals
  • Win outsourcing contracts with new and existing clients
  • Enhance vertical offerings
  • Increase geographic presence
  • Strengthen our solutions portfolio
  • Increase critical mass to qualify for more large contracts
  • Increase geographic presence
  • Ensure strategic fit and accretion to net earnings

Note:

Note: All figures in Canadian dollars. Q1 F2016 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at www.cgi.com/investors and have been filed with both SEDAR in Canada and EDGAR in the U.S.