Calian Group Ltd. · TSX:CGY

Calian — Non-Deal Roadshow (September 2024)

47 slides from Calian's roadshow presentation, Sep 30, 2024

  1. Slide 1: Investor Presentation

    Investor Presentation European Roadshow in collaboration with Phoenix IR September 30, 2024

  2. 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

  3. Slide 3: Agenda

    Agenda • Investment Thesis • Appendix 1: Overview of Calian • Appendix 2: 3-Year Strategic Plan • Appendix 3: Four Operating Segments © 2024 Calian Group Ltd. 3

  4. Slide 4: Investment Thesis

    Investment Thesis © 2024 Calian Group Ltd. | 4

  5. Slide 5: Capitalizing on Market Trends

    Capitalizing on Market Trends 1 ITCS Cyberattacks Surge in ransomware creating financial and reputational damage. Higher insurance costs with reduced coverage. 2 Health Healthcare demand Increased healthcare demand due to aging population, mental health awareness, population growth, use of virtual c

  6. Slide 6: Tracking After Q3-24 - Revenue and Adj. EBITDA

    Tracking After Q3-24 - Revenue and Adj. EBITDA1 Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 741 300 45.0%90 83 20.0% 659 246 80 18.0% 582 250 40.0% 66 66 518 204 70 16.0% 200 169 35.0%60 52 14.0% 432 33.

  7. Slide 7: 3-Year Objective: Revenues and Adj. EBITDA

    3-Year Objective: Revenues and Adj. EBITDA1 $1B $125M Revenues Adj. EBITDA1 ~15% ~24% Revenue CAGR Adj. EBITDA1 CAGR Includes ~ 5% organic and ~10% acquisitive growth Nearly doubling adjusted EBITDA1 from $66M to $125M 1 This is a non-GAAP measure. Please refer to the MD&A. Achievable objectives bas

  8. Slide 8: Objective: Reaching $1 Billion in Revenues by FY26

    Objective: Reaching $1 Billion in Revenues by FY26 Revenue Bridge2 Revenue Bridge1 Adj. EBITDA1 Bridge 2 Adj. EBITDA1 Bridge2 (in millions of $) (in millions of $) (in millions of $) (in millions of $) Note: 5% was used for organic growth and 10% for acquisition growth Note: A margin of 10% was used

  9. Slide 9: Tracking After Q3-24 - Revenue Growth

    Tracking After Q3-24 - Revenue Growth Organic Revenue Growth Total Revenue Growth1 (in %) Acquisitive Revenue Growth (in %) (in %) 19% 21% 26% 12% 20% 12% 17% 12% 12% 13% 8% 7% 7% 6% 5% 5% 5% 10% 2019 2020 2021 2022 2023 YTD Q3- 2019 2020 2021 2022 2023 YTD Q3- 2019 2020 2021 2022 2023 YTD Q3- 24 24

  10. Slide 10: Generating Significant Growth With Past Acquisitions

    Generating Significant Growth With Past Acquisitions Results 11 Number of recent acquisitions1 31% Revenue growth $256M After 2 years Price paid (including paid earnouts) 53% 4.9x EBITDA growth After 2 years Avg. multiple paid upfront (TTM EBITDA) Average multiple reduced after earnout © 2024 Calian

  11. Slide 11: Paying Reasonable Prices for Past Acquisitions

    Paying Reasonable Prices for Past Acquisitions TRANSACTION VALUE (in millions) DATE ACQUISITION SEGMENT GEOGRAPHY TOTAL UPFRONT EARNOUT EARNOOUT PAID Q3-24 Mabway Learning U.K. $41.0 $32.4 $8.6 n/a Q2-24 MDA nuclear assets Advanced Technologies Canada $7.9 $7.9 $0.0 n/a Q1-24 Decisive Group ITCS Can

  12. Slide 12: Creating Value for Shareholders

    Creating Value for Shareholders OFCF1 per share2 Adj. EBITDA2/diluted share Adj. EPS Diluted2 (in $) (in $) (in $) $7.42 $6.80 $10.59 $7.05 $4.42 $4.46 $3.87 $4.16 $3.83 $5.80 $5.62 $3.50 $3.45 $3.08 $3.27 $4.85 $2.41 $2.59 $4.02 $2.19 $3.26 $3.45 $2.25 $1.65 2018 2019 2020 2021 2022 2023 LTM FY26 E

  13. Slide 13: Appendix 1: Overview of Calian

    Appendix 1: Overview of Calian © 2024 Calian Group Ltd. | 13

  14. Slide 14: Calian FY23 Snapshot

    Calian FY23 Snapshot +40 years 4,400 Ottawa $603M CGY History Workforce Head office Market cap TSX Revenue segmentation 16% 29% Learning ITCS Customers Geography Offering $659M 52% 29% 24% commercial international products 2023 Revenues 27% 28% Advanced Health 48% 71% 76% technologies government Can

  15. Slide 15: Key Milestones in 40+ Year History

    Key Milestones in 40+ Year History Building Assets Reorganizing Capital & Growth (1982-2014) (2015-2019) (2020-beyond) 1982 1993 1996 2015 2019 2021 2023 Calian Acquisition Acquisition KevIn Ford Calian Acquisition Acquisition Technology Ltd. Skywave Pricon Staffing Services becomes CEO announces Da

  16. Slide 16: Stability & Diversity Through Four Operating Segments

    Stability & Diversity Through Four Operating Segments 29% 28% 27% 16% FY23 ITCS HEALTH ADVANCED TECHNOLOGIES LEARNING REVENUES $189M $185M $178M $106M SUB-SEGMENTS • XaaS & Cyber MDR2 (36%) • Health Services (83%) • Space (47%) • Defence Learning (93%) • On-demand Talent & Gov. • Pharma Solutions (1

  17. Slide 17: Calian – FY23 Defence Industry Exposure

    Calian – FY23 Defence Industry Exposure Segment FY23 Defence Description ITCS Revenues ~$20M Delivers IT professional services ~$250M to both private and government FY23 Defence Revenues customers operating in the Defence space Delivers primary care and Health ~$100M occupational health services to

  18. Slide 18: ESG Mindset

    ESG1 Mindset Our Journey 2022 2023 2024 2025 1. Set priorities 2. Tell our story 3. Define key metrics 4. Track - Report ESG1 Strategic Emissions Inaugural Materiality Net-Zero TCFD2 Climate Net-Zero Framework Inventory ESG1 Report Assessment Challenge Road Map Scenario Road Map Commitment Analysis

  19. Slide 19: Appendix 2: 3-Year Strategic Plan

    Appendix 2: 3-Year Strategic Plan © 2024 Calian Group Ltd. | 19

  20. Slide 20: 3-Year Objective: Revenues and Adj. EBITDA

    3-Year Objective: Revenues and Adj. EBITDA1 $1B $125M Revenues Adj. EBITDA1 ~15% ~24% Revenue CAGR Adj. EBITDA1 CAGR Includes ~ 5% organic and ~10% acquisitive growth Nearly doubling adjusted EBITDA1 from $66M to $125M 1 This is a non-GAAP measure. Please refer to the MD&A. Achievable objectives bas

  21. Slide 21: Tracking After Q3-24 - Revenue and Adj. EBITDA

    Tracking After Q3-24 - Revenue and Adj. EBITDA1 Revenues Gross Profit & Margin Adj. EBITDA1 & Margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 741 300 45.0%90 83 20.0% 659 246 80 18.0% 582 250 40.0% 66 66 518 204 70 16.0% 200 169 35.0%60 52 14.0% 432 33.

  22. Slide 22: Tracking After Q3-24 - Revenue Growth

    Tracking After Q3-24 - Revenue Growth Organic Revenue Growth Total Revenue Growth1 (in %) Acquisitive Revenue Growth (in %) (in %) 19% 21% 26% 12% 20% 12% 17% 12% 12% 13% 8% 7% 7% 6% 5% 5% 5% 10% 2019 2020 2021 2022 2023 YTD Q3- 2019 2020 2021 2022 2023 YTD Q3- 2019 2020 2021 2022 2023 YTD Q3- 24 24

  23. Slide 23: 3-Year Objective: Capital Deployed for M&A

    3-Year Objective: Capital Deployed for M&A $250–300M 6x–8x Capital Deployed Implied EBITDA Multiple $210–250M $36–43M 17% Revenue Adj. EBITDA1 Adj. EBITDA1 Margin 1 This is a non-GAAP measure. Please refer to the MD&A. Targeting IRR >15% before synergies & leverage © 2024 Calian Group Ltd. 23

  24. Slide 24: Tracking After Q3-24 – Capital Deployed for M&A

    Tracking After Q3-24 – Capital Deployed for M&A Acquisition Purchase Price (M$) Revenue (M$) Adj. EBITDA1 (M$) Adj. EBITDA1 Margin (%) Multiple Decisive 50 40 8 20% 6.3x MDA Nuclear Assets 8 8 2.5 31% 3.2x Mabway 32 35 8 23% 4.0x Total 90 83 18.5 21% 4.9x Targets 250-300 210-250 36-43 17% 6x-8x % Ta

  25. Slide 25: 3-Year Objective: OFCF and Balance Sheet

    3-Year Objective: OFCF1 and Balance Sheet $220M ~70% Operating FCF1 OFCF1 Conversion from adj. EBITDA1 <2.5x Internally Net Debt to Adj. EBITDA1 Funded Growth 1 This is a non-GAAP measure. Please refer to the MD&A. No requirement for equity issuance © 2024 Calian Group Ltd. 25

  26. Slide 26: Tracking After Q3-24 – Operating Free Cash Flow

    Tracking After Q3-24 – Operating Free Cash Flow Adj. EBITDA1 Operating Free Cash Flow OFCF Conversion1&2&3 (in millions of $) (OFCF)1&2 (in %) 83 (in millions of $) 53 76% 66 66 72% 47 66% 68% 45 63% 64% 52 35 37 28 27 17 2019 2020 2021 2022 2023 LTM Q3- 2019 2020 2021 2022 2023 LTM Q3- 2019 2020 20

  27. Slide 27: Tracking After Q3-24 - Leverage

    Tracking After Q3-24 - Leverage Total Debt Cash & Cash Equivalents Net Debt to Adj. EBITDA1 (in millions of $) (in millions of $) (ratio) 94 3.0x 79 2.5x 2.5x Target 2.0x 43 46 1.5x 38 34 24 1.0x 13 17 0.6x 8 0.5x 0 0.0x 0.1x 0 0.0x 0.0x 0.0x 0.0x 2019 2020 2021 2022 2023 Q3-24 2019 2020 2021 2022 2

  28. Slide 28: Tracking After Q3-24 - Liquidity

    Tracking After Q3-24 - Liquidity Credit Facility Cash & Cash Equivalents Cash Available (in millions of $) (in millions of $) (in millions of $) 251 255 255 79 207 199 75 75 75 40 155 75 43 46 40 120 120 34 84 40 40 159 176 24 132 60 17 44 115 40 2019 2020 2021 2022 2023 Q3-24 2019 2020 2021 2022 20

  29. Slide 29: Key Takeaways

    Key Takeaways Realistic and Track record Successful Strong capital Solid balance achievable of double-digit M&A strategy allocator sheet growth profitable objectives growth © 2024 Calian Group Ltd. 29

  30. Slide 30: Appendix 3: Four Operating Segments

    Appendix 3: Four Operating Segments © 2024 Calian Group Ltd. | 30

  31. Slide 31: IT and Cyber Solutions (ITCS)

    ITCS IT and Cyber Solutions (ITCS) © 2024 Calian Group Ltd. 31

  32. Slide 32: ITCS FY23 Snapshot

    ITCS FY23 Snapshot -13% 22% 12% $247M $141M organic growth acquisitive growth EBITDA % contract signings backlog 29% IT solution provider Revenue segmentation Customers Geography Offering $189M ~78% ~49% 24% 2023 Revenues commercial international products 36% 35% XaaS1 and cyber MDR1 ~22% ~51% 76% O

  33. Slide 33: ITCS Business Description

    ITCS Business Description 36% 35% 29% On-demand talent & XaaS1 and Cyber MDR1 gov. solutions IT Solution Provider Manages and protects data: Provides IT consulting services Designs, builds and maintains primarily to the government: enterprise IT infrastructure: • Outsourced IT & Cyber Ops. • Cyber c

  34. Slide 34: ITCS 5-Year Financial Performance

    ITCS 5-Year Financial Performance Revenues Gross profit & margin Adj. EBITDA1 & margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 70.0 68.7 55.0% 35.0 25.0% 189 61.1 29.5 50.0% 60.0 173 30.0 20.0% 45.0% 23.5 50.0 25.0 40.0% 17.1% 36.3% 15.0% 35.3% 40.0 20

  35. Slide 35: Health

    Health © 2024 Calian Group Ltd. 35

  36. Slide 36: Health FY23 Snapshot

    Health FY23 Snapshot 11% 0% 18% $115M $633M organic growth acquisitive growth EBITDA % contract signings backlog Revenue segmentation 16% 1% Digital health Pharma solutions Customers Geography Offering $185M ~25% ~0% 0% 2023 Revenues commercial international products 83% Health ~75% ~100% 100% servi

  37. Slide 37: Health Business Description

    Health Business Description 83% 16% 1% Health Services Pharma Solution Digital Health Manage a network of more than Provide clinical trial Provides digital health solutions 2800 healthcare professionals management services, specialty for patient care collaboration, delivering primary care and medica

  38. Slide 38: Health 5-Year Financial Performance

    Health 5-Year Financial Performance Revenues Gross profit & margin Adj. EBITDA1 & margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 55.0% 40.0 25.0% 195 34.8 60.0 185 33.4 50.0% 23.0% 35.0 163 167 48.7 50.0 47.8 45.0% 21.0% 30.0 28.3 41.6 40.0% 18.1% 19.0

  39. Slide 39: Advanced Technologies

    Advanced Technologies © 2024 Calian Group Ltd. 39

  40. Slide 40: Advanced Tech FY23 Snapshot

    Advanced Tech FY23 Snapshot 16% 3% 16% $192M $149M organic growth acquisition growth EDITDA % contract signings backlog Revenue segmentation 18% Defence Customers Geography Offering 47% Space $178M ~79% ~53% 60% 2023 Revenues commercial international products 35% ~21% ~47% 40% Terrestrial government

  41. Slide 41: Advanced Tech Business Description

    Advanced Tech Business Description 47% 35% 18% Space Terrestrial Defence Provides sophisticated ground- Provides products and solutions Provides engineering and based products and solutions to to a variety of markets: technical services along with the satellite industry: electronics design and produ

  42. Slide 42: Advanced Tech 5-Year Financial Performance

    Advanced Tech 5-Year Financial Performance Revenues Gross profit & margin Adj. EBITDA1 & margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 55.0% 30.0 25.0% 59.9 28.3 60.0 50.0% 23.0% 178 25.0 167 50.0 45.0% 21.0% 153 21.0 20.9 20.7 150 43.3 41.6 40.0% 20.

  43. Slide 43: Learning

    Learning © 2024 Calian Group Ltd. 43

  44. Slide 44: Learning FY23 Snapshot

    Learning FY23 Snapshot 16% 0% 16% $26M $248M organic growth acquisitive growth EBITDA % contract signings backlog Revenue segmentation 7% Commercial Customers Geography Offering $106M ~7% ~12% 6% 2023 Revenues 93% commercial international products Defence learning ~93% ~88% 94% government Canadian s

  45. Slide 45: Learning Business Description

    Learning Business Description 93% 7% Defence Commercial Provides a range of military Provides high-quality customized training for the CAF1 and NATO learning solutions to countries: government, academic and corporate customers: • Design, develop and deliver complex training exercises • Learning stra

  46. Slide 46: Learning 5-Year Financial Performance

    Learning 5-Year Financial Performance Revenues Gross profit & margin Adj. EBITDA1 & margin1 (in millions of $) (in millions of $, except margin) (in millions of $, except margin) 30.0 55.0% 18.0 25.0% 16.9 16.6 27 106 50.0% 16.0 23.0% 25.0 23.3 92 45.0% 14.0 21.0% 12.4 75 20.0 40.0% 12.0 19.0% 17.3

  47. Slide 47: Thank you

    Thank you Jennifer McCaughey, CFA, F.CIRI Director, Investor Relations [email protected]

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