Fourth Quarter Fiscal 2013

Investment profile (as of September 2013)

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
• Company overview
• Investment highlights
• Q4 F2013 highlights
• Revenue distribution
• Competitive strengths
• Enhanced value proposition
• "Build and buy" profitable growth strategy

Stock overview

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

Company overview

Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 68,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices and centers of excellence across the Americas, Europe and Asia Pacific. CGI's shares are listed on the NYSE (GIB) and the TSX (GIB.A) and are included in the FTSE4Good Index.

Investment highlights

• Strong profitability and cash flow
• Value proposition and critical mass position CGI to increase its market share in Canada, the US and Europe
• Proven growth strategy—a balanced mix of organic growth and acquisitions guided by a disciplined financial model and supported by CGI's commitment to quality processes
• Competitive global delivery model, which includes the leading nearshore offering
• CGI's significant backlog provides good revenue visibility

Q4 F2013 year-over-year highlights

• Revenue of $2.5 billion, up 52.7%; 
• Bookings of $2.5 billion, up 64.2%;
• Backlog of $18.7 billion, up more than $1.0 billion;
• Adjusted EBIT of $313.4 million, up 174.6%;
• Adjusted EBIT margin of 12.7%;
• Net earnings of $213.6 million or diluted EPS of 67 cents, excluding acquisition-related and integration costs and unfavorable tax adjustments;
• Net earnings of $141.0 million, or diluted EPS of 44 cents on a GAAP basis, including acquisition-related and integration costs and unfavorable tax adjustments;
• Cash provided by operating activities of $166.4 million, or 52 cents per diluted share;
• Net debt reduced by $133.1 million and repurchased 365,200 shares during the quarter;
• Return on invested capital of 11.8%.

Revenue distribution

• Service type:

56% Management of IT and business functions (outsourcing)

- IT services 44%
- Business process services 12%

44 % Systems integration and consulting

• Client geography:

26%     United States
17%     Canada
12%     France
12%     U.K.
  9%     Sweden
  6%     Finland
18%     Rest of the world

• Vertical markets:

32%   Government
26%   Manufacturing, retail and distribution
18%   Financial services
16%   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

Note: All amounts in Canadian dollars unless otherwise specified. This is CGI's third quater reporting under International Financial Reporting Standards ("IFRS"). All prior periods presented here have been retrospectively revised in accordance with IFRS.