CGI Inc (GIB) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to CGI's Fourth Quarter Fiscal 2023 Conference Call.

早安，女士們，先生們。歡迎參加 CGI 2023 財年第四季電話會議。

I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.

現在我想將會議交給投資者關係資深副總裁 Kevin Linder 先生。請繼續，林德先生。

Thank you, Colin, and good morning. With me to discuss CGI's Fourth Quarter and Fiscal 2023 Results are George Schindler, our President and CEO; and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9:00 a.m. Eastern Time on Wednesday, November 8, 2023. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our fiscal 2023 MD&A, audited financial statements and accompanying notes, all of which have been filed with both SEDAR plus and EDGAR.

謝謝你，科林，早安。與我一起討論 CGI 第四季和 2023 財年業績的是我們的總裁兼執行長 George Schindler；以及執行副總裁兼財務長 Steve Perron。本次電話會議正在cgi.com 上播出，並於2023 年11 月8 日星期三東部時間上午9:00 進行現場錄製。補充幻燈片以及我們今天上午早些時候發布的新聞稿以及我們的2023 財年MD&A 可供下載、經審計的財務報表和附註，所有這些均已向 SEDAR plus 和 EDGAR 備案。

Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete safe harbor statement is available in both our MD&A and press release as well as on cgi.com. We recommend our investors read it in its entirety. We are reporting our financial results in accordance with International Financial Reporting Standards or IFRS.

請注意，電話會議中所做的一些陳述可能具有前瞻性。實際事件或結果可能與明示或暗示的事件或結果有重大差異，CGI 不承擔任何更新或修改任何前瞻性陳述的意圖或義務，無論是由於新資訊、未來事件或其他原因。完整的安全港聲明可在我們的 MD&A 和新聞稿以及 cgi.com 上找到。我們建議投資人閱讀全文。我們根據國際財務報告準則或國際財務報告準則報告我們的財務表現。

As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian, unless otherwise noted.

像往常一樣，我們還將討論非 GAAP 績效指標，這應被視為補充。 MD&A 包含我們報告中使用的每一項的定義。除非另有說明，本次電話會議中所使用的所有美元數字均為加幣數字。

I'll now turn it over to Steve to review our Q4 financials and then George will comment on our full year performance and business and market outlook. Steve?

我現在將把它交給史蒂夫來審查我們第四季度的財務狀況，然後喬治將評論我們的全年業績以及業務和市場前景。史蒂夫？

Thank you, Kevin, and good morning, everyone. I'm pleased to share with you the results of our fourth quarter of fiscal 2023. In Q4, we delivered $3.51 billion of revenue, up 8% year-over-year or up 2.2% when excluding the impact of foreign exchange. Constant currency growth was 3.4% in Europe and 1.1% in North America. From an industry perspective, we had growth across 4 of 5 sectors with particular strength in both health and government growing at a combined rate of 7.2% in constant currency.

謝謝你，凱文，大家早安。我很高興與您分享 2023 財年第四季的業績。第四季度，我們實現了 35.1 億美元的收入，年增 8%，排除外匯影響後成長 2.2%。歐洲的恆定貨幣成長率為 3.4%，北美為 1.1%。從產業角度來看，我們 5 個產業中有 4 個產業實現了成長，其中健康產業和政府產業的成長尤其強勁，以固定匯率計算，綜合成長率為 7.2%。

Government continues to be CGI's largest vertical market now representing 37% of revenue, up 200 basis points when compared to the prior year. CGI delivers services and business solutions to support our government clients with their mission-critical functions such as cybersecurity, logistics, financial management and citizen services. IP as a percentage of total revenue was 22.6% in the quarter with the vast majority contracted as longer-term recurring engagements.

政府仍然是 CGI 最大的垂直市場，目前佔收入的 37%，比前一年增加了 200 個基點。 CGI 提供服務和業務解決方案，以支援我們的政府客戶履行網路安全、物流、財務管理和公民服務等關鍵任務職能。本季知識產權佔總收入的百分比為 22.6%，其中絕大多數是長期經常性業務。

Overall, IP revenue growth was 4.1% in constant currency with more than half comprised of Software-as-a-Service arrangements, which were up 300 basis points from the prior year. IP constant currency revenue growth was strongest in Government and Financial Services, our largest IP revenue basis. Government represents the largest proportion of our IP revenue base, which is at 47% of total IP revenue and financial services represent the single largest commercial revenue base which is at 26% of total IP revenue.

整體而言，以固定匯率計算，IP 收入成長 4.1%，其中超過一半來自軟體即服務安排，比上年增加 300 個基點。 IP 固定貨幣收入成長在政府和金融服務領域最為強勁，這是我們最大的 IP 收入基礎。政府在我們的智慧財產權收入基礎中所佔比例最大，佔智慧財產權總收入的 47%，金融服務是最大的單一商業收入基礎，佔智慧財產權總收入的 26%。

Our IP solutions become even more attractive to clients in times where discretionary capital is constrained as they shorten their business cycle from decision to realization of business value. We once again had a strong quarter of overall contract wins, booking $4 billion in the quarter, up 10% year-over-year for a robust book-to-bill ratio of 114% led by U.S. Federal with a book-to-bill ratio of 188%. Canada with a book-to-bill ratio of 121% and U.S. commercial and state government also with a book-to-bill ratio of 121%.

在可自由支配資本受到限制的時期，我們的智慧財產權解決方案對客戶更具吸引力，因為它們縮短了從決策到實現業務價值的業務週期。我們再次取得了強勁的季度總合約贏得量，本季預訂了 40 億美元，年增 10%，訂單出貨比高達 114%，其中美國聯邦訂單出貨比領先。比例達188%。加拿大的訂單出貨比為 121%，美國商業和州政府的訂單出貨比也為 121%。

Importantly, managed services, which translates to longer-term recurring revenue for CGI, represented 60% of total bookings, up significantly from 52% in the prior year aligned with the demand we are seeing from our clients. Overall, our global backlog reached a record of $26.1 billion, representing 1.8x revenue.

重要的是，託管服務（即 CGI 的長期經常性收入）佔總預訂量的 60%，比前一年的 52% 大幅上升，這與我們從客戶看到的需求一致。整體而言，我們的全球積壓訂單達到創紀錄的 261 億美元，相當於營收的 1.8 倍。

Turning to profitability. Earnings before income taxes were $558 million, up 14.8% year-over-year for a margin of 15.9%, up 90 basis points year-over-year. Adjusted EBIT in Q4 was $573 million, up 9.8% year-over-year. This represents a margin of 16.3%, up 20 basis points year-over-year. This increase was driven by the combination of profitable revenue growth and operational discipline partially offset by 1 less calendar or day.

轉向盈利能力。所得稅前利潤為 5.58 億美元，年增 14.8%，利潤率為 15.9%，年增 90 個基點。第四季調整後息稅前利潤為 5.73 億美元，年增 9.8%。這意味著利潤率為 16.3%，年比上升 20 個基點。這一增長是由盈利收入增長和運營紀律共同推動的，但被減少 1 個日曆或天所部分抵消。

We delivered strong margins in the following segments: Asia Pacific at 27%, Canada at 25% and U.S. commercial and state government at 16.7%. Our effective tax rate in Q4 was 25.7% compared to 25.4% in the prior year. We expect our tax rate for future quarters to be in the range of 25% to 26.5%. Net earnings improved to $414 million, up 14.4% when compared to Q4 last year for a margin of 11.8%, up 60 basis points year-over-year.

我們在以下細分市場實現了強勁的利潤率：亞太地區為 27%，加拿大為 25%，美國商業和州政府為 16.7%。我們第四季的有效稅率為 25.7%，而前一年為 25.4%。我們預計未來幾季的稅率將在 25% 至 26.5% 之間。淨利潤增至 4.14 億美元，較去年第四季成長 14.4%，利潤率為 11.8%，較去年同期成長 60 個基點。

Diluted EPS was $1.76, representing an increase of 16.6% year-over-year when compared to $1.51 in Q4 last year. In September, we initiated a cost optimization program to accelerate actions to rightsize our real estate portfolio and improve operational efficiencies focused on administrative activities. In the quarter, $9 million was expensed, and we plan to incur approximately $65 million of additional expense over the first half of fiscal 2024. When excluding specific items, net earnings improved to $421 million, up 12.9% when compared to Q4 last year for a margin of 12%, up 50 basis points. On the same basis, diluted EPS was $1.79, an accretion of 14.7% when compared to Q4 last year.

稀釋後每股收益為 1.76 美元，較去年第四季的 1.51 美元成長 16.6%。 9 月份，我們啟動了一項成本優化計劃，以加快調整房地產投資組合規模並提高行政活動營運效率的行動。本季支出了 900 萬美元，我們計劃在 2024 財年上半年額外支出約 6,500 萬美元。排除特定項目後，淨利潤增至 4.21 億美元，與去年第四季相比增長 12.9%利潤率為12 %，上升50 個基點。在同一基礎上，稀釋後每股收益為 1.79 美元，較去年第四季成長 14.7%。

In the quarter, Cash provided by operating activities was $629 million, representing 17.9% of total revenue, an increase of 28.6% when compared to the prior year. On a trailing 12-month basis, cash provided by operating activities represented 14.8% of total revenue. DSO was 44 days in the quarter, in line with our target of 45 days.

本季經營活動提供的現金為6.29億美元，佔總營收的17.9%，較上年成長28.6%。在過去 12 個月的基礎上，經營活動提供的現金佔總收入的 14.8%。本季的 DSO 為 44 天，符合我們 45 天的目標。

In Q4, we invested $107 million into our business and $325 million to buy back our stock. As of the end of September, we have the opportunity to buy back up to an additional 12.6 million shares under our current NCIB program, which will be up for renewal in February 2024. In the quarter, we continued to deliver a strong return on invested capital at 16%, up 30 basis points year-over-year demonstrating our proficiency and discipline on deployment of capital.

第四季度，我們向業務投資了 1.07 億美元，並投資了 3.25 億美元回購股票。截至 9 月底，我們有機會根據目前的 NCIB 計劃額外回購最多 1,260 萬股股票，該計劃將於 2024 年 2 月更新。本季度，我們繼續實現強勁的投資回報資本利率為16%，同比增長30個基點，體現了我們在資本部署方面的熟練程度和紀律。

Looking ahead, our focus continues to be on delivering value to shareholders by investing in our business, including in AI, pursuing and closing accretive acquisitions, and repurchasing our stock and/or paying down our debt. CGI has a strong balance sheet with a net debt to capitalization ratio of 20.4% at the end of September as well as $3.1 billion of cash readily available and access to more if needed. Moving forward, CGI has the strength and capital resources to continue to execute on both our build and buy profitable growth strategy.

展望未來，我們的重點仍然是透過投資我們的業務（包括人工智慧）、尋求並完成增值收購、回購我們的股票和/或償還我們的債務，為股東創造價值。 CGI 擁有強大的資產負債表，截至 9 月底的淨債務與資本比率為 20.4%，並且擁有 31 億美元的可用現金，並在需要時可以獲得更多現金。展望未來，CGI 擁有實力和資本資源，可以繼續執行我們的建置和收購獲利成長策略。

Now I will turn the call over to George to recap the full year results and to provide business and market outlook. George?

現在我將把電話轉給喬治，回顧全年業績並提供業務和市場前景。喬治？

Thank you, Steve, and good morning, everyone. Our team's performance in the quarter contributed to a strong fiscal 2023. In both the quarter and year, we delivered results in line with our full year plan to continue delivering double-digit EPS accretion and to profitably grow at/or ahead of the markets in which we operate.

謝謝你，史蒂夫，大家早安。我們團隊在本季度的表現為2023 財年的強勁表現做出了貢獻。在本季度和本年度，我們的業績都符合我們的全年計劃，即繼續實現兩位數的每股收益增長，並實現獲利成長，達到/或領先市場我們經營的。

Financial highlights for the year included 8% year-over-year constant currency revenue growth. 15.3% year-over-year adjusted EPS accretion, $2.1 billion of cash from operating activities, up 13.3% year-over-year and $16.3 billion of bookings, up $2.3 billion or 16.4% compared to last year.

本年度的財務亮點包括貨幣收入年增 8%。調整後每股盈餘較去年同期成長 15.3%，經營活動現金年增 21 億美元，年增 13.3%，預訂量年增 23 億美元，成長 16.4%，達到 163 億美元。

Now I will review the performance highlights by stakeholders, starting with clients. CGI's strong results this year would not be possible without the trust of our clients. Once again, we ended the year with signed client satisfaction rating that were higher on every dimension we measure. Importantly, two of the highest increases in satisfaction were for the degree to which our services are valued and for the level of innovation we introduced into our engagement. These qualities are fundamental to delivering the ROI-led digitization outcomes that are currently in high demand, especially as clients apply a sharper focus on IT spending given the current economic conditions.

現在，我將從客戶開始回顧利害關係人的績效亮點。如果沒有客戶的信任，CGI 今年的強勁業績就不可能實現。我們再次以在我們衡量的每個維度上都更高的客戶滿意度結束了這一年。重要的是，滿意度增幅最大的兩個因素是我們的服務受到重視的程度以及我們在參與中引入的創新水平。這些品質對於提供當前需求旺盛的以投資回報率為主導的數位化成果至關重要，特別是在當前經濟狀況下，客戶更加關注 IT 支出。

Turning to our employees, and we now call CGI partners as 85% are also shareholders of CGI. Our performance in 2023 is the result of the world-class partnership behaviors that our consultants and professionals embody as they deliver advice, expertise and insights our clients can act on to achieve their business objectives. We continue to prioritize training for our talented consultants through interactive courses of CGI Academia, in both development of industry knowledge and technical expertise, including regenerative AI-based applied learning in labs and sandbox environment. And for our shareholders, we delivered broad-based constant currency revenue growth in all geographic segments and industry sectors.

至於我們的員工，我們現在稱 CGI 合作夥伴為 85%，也是 CGI 的股東。我們 2023 年的表現是我們的顧問和專業人員在提供建議、專業知識和見解時所體現的世界級合作行為的結果，我們的客戶可以據此採取行動以實現其業務目標。我們繼續優先透過 CGI 學術界的互動課程對我們的才華橫溢的顧問進行培訓，包括行業知識和技術專業知識的發展，包括在實驗室和沙箱環境中基於人工智慧的再生應用學習。對於我們的股東來說，我們在所有地理區域和行業領域實現了廣泛的恆定貨幣收入成長。

For the fiscal year, our book-to-bill ratio was 114%, up 500 basis points compared to the prior year. And on profitability, our results for the year continued to push CGI in the top quartile of our IT services peer group. Adjusted EBIT was up 10.8% year-over-year or 16.2% margin. Adjusted net earnings were up 12.9% year-over-year, a margin of 11.8%, up 20 basis points, and adjusted EPS was up 15.3%.

本財年，我們的訂單出貨率為 114%，較上年上升 500 個基點。在獲利能力方面，我們今年的業績持續推動 CGI 在 IT 服務同業中名列前茅。調整後息稅前利潤年增 10.8%，利潤率 16.2%。調整後淨利年增 12.9%，利潤率為 11.8%，成長 20 個基點，調整後每股收益成長 15.3%。

Before turning to the outlook and priorities for fiscal 2024, I would like to comment on the recent cost optimization program we initiated, which provides a tailwind for the fiscal year ahead. This program is focused on SG&A to embed additional profitability improvements into our business plans for fiscal 2024. We'll streamline our expense profile to drive higher efficiency in our internal business operations, including through the increased use of automation and global delivery. By being proactive now, while we are strong, we expect this action to help us increase EBIT margin in line with our plan, while also freeing up capital to be allocated towards higher yield growth investments, such as innovation, including in AI, learning and development to deepen industry knowledge and technology expertise, delivery, focus on our offerings and for large deal pursuits and for accretive M&A transactions.

在談到 2024 財年的前景和優先事項之前，我想先評論一下我們最近啟動的成本優化計劃，該計劃為未來財年提供了推動力。該計劃的重點是 SG&A，將額外的盈利能力改進納入我們 2024 財年的業務計劃中。我們將簡化費用狀況，以提高內部業務運營的效率，包括透過更多地使用自動化和全球交付。透過現在積極主動，在我們實力雄厚的同時，我們預計這一行動將幫助我們按照我們的計劃提高息稅前利潤率，同時也釋放資本，分配給更高收益增長的投資，例如創新，包括人工智慧、學習和開發以深化行業知識和技術專業知識、交付、專注於我們的產品以及大型交易追求和增值併購交易。

As we look ahead to fiscal 2024, I would like to share some observations from recent meetings held with client executives across Europe and North America. Client sentiment emphasized the complexity of the IT services demand environment. Clients indicate that they are facing significant pressures from simultaneous and overlapping market dynamics. They need to navigate rapidly evolving geopolitical and economic conditions. They need to adapt to broad societal, technological and cultural changes. In short, it's a complicated operational and strategic challenge. Clients need to reduce spending while continuing to progress their digitization and innovation agendas.

在我們展望 2024 財年時，我想分享最近與歐洲和北美客戶高層舉行的會議的一些觀察。客戶情緒強調了 IT 服務需求環境的複雜性。客戶表示，他們面臨同時且重疊的市場動態帶來的巨大壓力。他們需要應對快速變化的地緣政治和經濟狀況。他們需要適應廣泛的社會、技術和文化變革。簡而言之，這是一個複雜的營運和策略挑戰。客戶需要減少支出，同時繼續推動數位化和創新議程。

CGI's end-to-end services and solutions continue to position us well in this environment, particularly with our managed services offering, which helps clients achieve cost savings and drive transformation. Our pipeline reflects its positioning as the value of new opportunities grew by more than 20% on a year-over-year basis, with managed services up nearly 40%. Second half, managed services bookings were nearly $4.9 billion, up by more than $900 million compared to the first half of the year. Driven by continued strong opportunities in CGI's largest industry sectors of government and financial services. These larger engagements continue to increasingly require a tailored combination of our end-to-end offerings and global delivery.

CGI 的端到端服務和解決方案繼續使我們在這種環境中佔據有利地位，特別是我們的託管服務產品，它可以幫助客戶節省成本並推動轉型。我們的管道反映了其定位，即新機會的價值同比增長超過 20%，託管服務增長近 40%。下半年，託管服務預訂金額接近 49 億美元，較上半年成長逾 9 億美元。受到 CGI 最大的政府和金融服務業持續強勁機會的推動。這些更大規模的業務越來越需要我們的端到端產品和全球交付的客製化組合。

In line with the higher proportion of managed services bookings, billable hiring in our offshore delivery centers once again outpaced global hiring in the second half of the year. Given the current geopolitical environment, we saw particular strength in government bookings across our end-to-end offerings. On a year-over-year basis, awards from government sector clients were up by more than $1.3 billion or 25%. This rising government sector demand was driven by continued spending to support new policy initiatives in areas such as cloud, data analytics, defense logistics and technology programs, cybersecurity and AI. Based on historical economic and IT spending patterns, we expect that governments around the world will accelerate investments in the near term, which will continue to provide a stable growth platform for CGI.

隨著託管服務預訂比例的提高，我們的離岸交付中心的計費招聘在今年下半年再次超過了全球招聘。鑑於當前的地緣政治環境，我們看到政府預訂在我們的端到端產品中特別強大。與去年同期相比，政府部門客戶的獎勵增加了 13 億美元以上，即 25%。政府部門不斷增長的需求是由持續支出支援雲端、數據分析、國防後勤和技術項目、網路安全和人工智慧等領域的新政策舉措所推動的。根據歷史經濟和IT支出模式，我們預期世界各國政府將在短期內加快投資，這將繼續為CGI提供穩定的成長平台。

Representative Q4 wins for broader scope engagements, including Circle K, a leading global convenience retailer, selected CGI for a 10-year strategic partnership to deliver managed IT services. Through this engagement, we will help strengthen our capacity to enhance customer and employee experience and advance their business goals.

代表 Q4 贏得了更廣泛的合作，其中包括全球領先的便利零售商 Circle K 選擇 CGI 建立 10 年策略合作夥伴關係，以提供託管 IT 服務。透過這種參與，我們將幫助增強我們的能力，以提高客戶和員工的體驗並推進他們的業務目標。

As (inaudible) revenue and customs authority, named CGI, a partner on the government-wide Crown Commercial Service digitization framework. CGI is positioned to deliver user center design services and application management and delivery will support the U.K. government's digital strategy. The French National Center for Scientific Research expanded its relationship with CGI with reward of an 8-year managed services engagement to be the institution's strategic digital transformation partner. We will help modernize their technical and business systems, including the secure migration of enterprise applications to the cloud. And Scotiabank, a leading Canadian multinational bank, selected CGI's all payment solution to advance the bank's payments innovation agenda. By deploying our modular cloud-based enterprise payments platform, it will help the bank accelerate benefits for their global customers and ease payment processes.

作為（聽不清楚）稅務和海關當局，CGI 是政府範圍內的皇家商業服務數位化框架的合作夥伴。 CGI 的定位是提供使用者中心設計服務以及應用程式管理和交付，以支援英國政府的數位策略。法國國家科學研究中心擴大了與 CGI 的關係，並獲得為期 8 年的託管服務合作獎勵，成為該機構的策略性數位轉型合作夥伴。我們將協助他們實現技術和業務系統的現代化，包括將企業應用程式安全地遷移到雲端。加拿大領先的跨國銀行豐業銀行選擇了 CGI 的全額支付解決方案來推進該銀行的支付創新議程。透過部署我們基於雲端的模組化企業支付平台，它將幫助銀行加快為全球客戶帶來利益並簡化支付流程。

CGI's overall bookings for the all payment solutions were up this year by more than 13%. In the quarter, all payments were certified as one of the first solutions to participate in the U.S. Federal Reserve Bank's FedNow Service, a new real-time payments network. Leveraging our global alliance with Microsoft, all payments is also now available in the Microsoft Azure marketplace, providing a new channel for clients to easily purchase and deploy our industry-leading IP.

今年，CGI 所有支付解決方案的整體預訂量成長了 13% 以上。本季度，所有支付均被認證為首批參與美國聯邦儲備銀行全新即時支付網路 FedNow 服務的解決方案之一。透過我們與 Microsoft 的全球聯盟，所有付款方式現在也可在 Microsoft Azure 市場上進行，為客戶輕鬆購買和部署我們領先業界的 IP 提供了新管道。

Our business plan for fiscal 2024 incorporates continued investments in our end-to-end services, enabling our consultants to bring CGI's full offering value proposition to clients. For managed services, we will accelerate deals through expanded capacity in our business engineering function and through continued investments to embed innovation and efficiencies into our delivery solution. Our managed services value proposition provides clients with the ability to generate cost savings and drive forward the digital transformation agenda. CGI, managed services provides longer-term recurring revenue, which deepens our resilience through all economic cycles.

我們 2024 財年的業務計畫包括對端到端服務的持續投資，使我們的顧問能夠為客戶帶來 CGI 的全面產品價值主張。對於託管服務，我們將透過擴大業務工程功能的能力以及持續投資將創新和效率融入我們的交付解決方案來加速交易。我們的託管服務價值主張使客戶能夠節省成本並推動數位轉型議程。 CGI 託管服務可提供長期經常性收入，從而增強我們在所有經濟週期中的抵禦能力。

In IP, we will continue to develop new solutions and enhance existing solutions in line with emerging client needs, including the traditional and generative AI. Our IP value proposition provides clients with digital accelerators, lower capital costs and built-in security and innovation. CGI, IP provides recurring revenue with a higher margin profile expanding our overall profitability. And we will focus our business and strategic IT consulting and systems integration capabilities on industries and offerings where discretionary spending remains strong.

在智慧財產權方面，我們將繼續開發新的解決方案，並根據新興的客戶需求（包括傳統人工智慧和生成人工智慧）增強現有解決方案。我們的智慧財產權價值主張為客戶提供數位加速器、更低的資本成本以及內建的安全性和創新。 CGI、IP 提供經常性收入和更高的利潤率，從而擴大了我們的整體獲利能力。我們將把我們的業務和策略 IT 諮詢以及系統整合能力集中在可自由支配支出仍然強勁的行業和產品上。

Our SI&C value proposition provides clients with the actionable advice and implementation capabilities they need to realize business value. For CGI, our SI&C services provides a strategic client relationship entry point while creating opportunities to deliver end to end value. Our fiscal 2024 business plan also includes continued investments in M&A as macroeconomic and geopolitical dynamics continue to reshape the consolidation activities within the IT services industry.

我們的 SI&C 價值主張為客戶提供實現業務價值所需的可行建議和實施能力。對於 CGI，我們的 SI&C 服務提供了策略性客戶關係切入點，同時創造了交付端到端價值的機會。隨著宏觀經濟和地緣政治動態持續重塑 IT 服務產業內的整合活動，我們的 2024 財年業務計畫還包括持續投資併購。

We started the fiscal year by closing the merger of Momentum Consulting, Miami-based IT and business consulting firm specializing in digital transformation and data analytics. This merger strengthens our position in the U.S. metro market in Miami, bringing new client relationships in the manufacturing, retail and distribution sectors. I'd like to warmly welcome the more than 175 new consultants who joined CGI through this merger.

我們在本財年伊始就完成了 Momentum Consulting 的合併，Momentum Consulting 是一家總部位於邁阿密的 IT 和商業諮詢公司，專門從事數位轉型和數據分析。此次合併增強了我們在邁阿密美國地鐵市場的地位，在製造、零售和分銷領域帶來了新的客戶關係。我熱烈歡迎透過這次合併加入 CGI 的超過 175 位新顧問。

We will continue to focus on building critical mass in strategic metro markets within all CGI geographies. Our goal is to gradually grow this presence to mirror the economic sector distribution in each metro market and to deploy our full range of services and solutions. We are in dialogue with a large number of merger targets, and we are seeing a better alignment of M&A conditions as compared to last year, with valuation multiples now moving into a more reasonable zone. As always, we will be disciplined to make sure that all CGI mergers will be accretive to each of our statements.

我們將繼續專注於在所有 CGI 地區的策略性地鐵市場中建立足夠的規模。我們的目標是逐步擴大這種影響力，以反映每個地鐵市場的經濟部門分佈，並部署我們全方位的服務和解決方案。我們正在與大量併購目標進行對話，我們看到併購條件比去年更好，估值倍數現在進入更合理的區域。一如既往，我們將遵守紀律，確保所有 CGI 合併都會增加我們的每一份聲明。

Finally, our business plan incorporates investment and innovation. Generative AI continues to be at the top of innovation discussion agendas with clients with trust and responsibility as key priorities. The engagement of our experts and government initiatives and councils around the world reinforces our commitment to continue upholding the highest standards in the development and deployment of emerging technologies as for CGI's responsible used framework. And we are now a signatory of the Canadian voluntary code of conduct on the responsible development and management of advanced generative AI systems.

最後，我們的商業計劃包含投資和創新。生成式人工智慧持續處於客戶創新討論議程的首位，信任和責任是關鍵優先事項。我們的專家以及世界各地的政府倡議和理事會的參與強化了我們的承諾，即在 CGI 負責任的使用框架方面繼續堅持新興技術的開發和部署的最高標準。我們現在是加拿大關於負責任地開發和管理先進生成人工智慧系統的自願行為準則的簽署者。

Importantly, we announced last week a new AI focused initiative. Leveraging our global alliance with Google to use our cloud platform to enhance the capabilities of CGI's PulseAI Solution. Under this initiative with Google, we will also develop innovative industry-specific use cases, help clients accelerate their time to value from new generative AI applications.

重要的是，我們上周宣布了一項新的以人工智慧為重點的計劃。利用我們與 Google 的全球聯盟，利用我們的雲端平台增強 CGI PulseAI 解決方案的功能。根據與Google的這項計劃，我們還將開發創新的行業特定用例，幫助客戶加快從新的生成式人工智慧應用程式中實現價值的時間。

Overall, client adoption of generative AI remains in the early stages, which is resulting in focused opportunities for CGI and data consulting and SI projects, proof-of-concept efforts and targeted use case implementations, particularly using our IP. They are currently engaged in over 600 active projects with various AI components. In Q4, CGI's bookings, which incorporated AI, totaled more than $175 million. Examples of recently awarded engagements using AI include the U.S. Department of State selected CGI's Atlas360 solution, which incorporates AI-based technologies to help the agency improve efficiency, effectiveness and security in their Asia Pacific piece of processes.

總體而言，客戶對生成式人工智慧的採用仍處於早期階段，這為CGI 和資料諮詢以及SI 專案、概念驗證工作和有針對性的用例實施（特別是使用我們的IP）帶來了集中機會。他們目前正在參與 600 多個包含各種人工智慧組件的活躍專案。第四季度，包含人工智慧的 CGI 預訂總額超過 1.75 億美元。最近獲得的使用人工智慧的專案範例包括美國國務院選擇了 CGI 的 Atlas360 解決方案，該解決方案結合了基於人工智慧的技術，幫助該機構提高亞太地區流程的效率、有效性和安全性。

Several U.S. regional banks expanded their relationship with CGI to upgrade to our AI-enabled collections IP. Our solution will help each of the banks deliver data-driven customer journeys as part of the debt relief and recovery initiatives. And as part of Canada's indigenous digital health ecosystem initiative, CGI will work with partners to use an array of advanced nonintrusive technologies, including AI, to build a digital twin and risk model for advancing fire safety and preparedness in First Nation community.

幾家美國地區銀行擴大了與 CGI 的關係，升級到我們的人工智慧催收 IP。作為債務減免和追收計劃的一部分，我們的解決方案將幫助每家銀行提供數據驅動的客戶旅程。作為加拿大本土數位健康生態系統計畫的一部分，CGI 將與合作夥伴合作，使用包括人工智慧在內的一系列先進的非侵入式技術，建立數位孿生和風險模型，以促進原住民社區的消防安全和準備工作。

In closing, the combination of our strong performance in fiscal 2023, the actions we initiated in Q4 and the initiatives embedded in our business plan underscore our continued confidence for fiscal 2024 to deliver double-digit EPS accretion, incremental margin expansion and revenue growth consistent with the current IT services demand environment. CGI's resilience and positioning strategically, operationally and financially, enable us to be one of the few leading global firms with the scale, reach, insights, capabilities and commitment to remain a partner and expert of choice for clients and empowering environment for our consultants and professionals, and engage ethical and responsible corporate citizen and investment of choice for our shareholders. Thank you for your continued interest and support.

最後，我們在2023 財年的強勁業績、我們在第四季度採取的行動以及我們業務計劃中包含的舉措，這一切都突顯了我們對2024 財年實現兩位數每股收益增長、增量利潤率擴張和與預期一致的收入成長的持續信心。當前的IT服務需求環境。 CGI 在策略、營運和財務方面的韌性和定位，使我們成為少數具有規模、影響力、洞察力、能力和承諾的全球領先公司之一，始終是客戶首選的合作夥伴和專家，並為我們的顧問和專業人員提供有利的環境，並吸引有道德和負責任的企業公民以及我們股東的首選投資。感謝您一直以來的關注與支持。

Go to questions now, Kevin.

現在開始提問，凱文。

Thanks, George. Colin, please provide the logistics to the participants for the Q&A.

謝謝，喬治。 Colin，請為問答參與者提供後勤支援。

(Operator Instructions) Your first question comes from Thanos Moschopoulos from BMO Capital Markets.

（操作員說明）您的第一個問題來自 BMO 資本市場的 Thanos Moschopoulos。

George, as you talk to your clients, do you see this very much playing out like prior periods of macro uncertainty? Or are there some key differences to call out? And so what I mean is at a high level, you're seeing strength in managed services, slowdown in SI&C. And so that's exactly like in prior cycles. But underlying that, there's obviously a lot of technological change happening with public cloud, GenAI, things like that. So is that finding a different dynamic here in terms of how things might lay out over the next year? Or do you see it being like prior cycles?

喬治，當您與客戶交談時，您是否認為這與之前的宏觀不確定性時期非常相似？還是有一些關鍵的差異需要被指出？所以我的意思是，在高水準上，您會看到託管服務的實力，而 SI&C 的放緩。這與之前的周期完全一樣。但在此基礎上，公有雲、GenAI 等顯然正在發生許多技術變革。那麼，就明年的情況而言，是否會發現不同的動態？或者您認為它與之前的周期相似嗎？

No. Here's what I would see. And I personally was in Europe for a week been throughout North America. And what I'm hearing is I kind of mentioned this, it's a bit of a dilemma. That's how one of the clients put it to me. They know that in order to meet their business goals, they need to continue spending in IT beyond just the managed services, but in some of the other areas, both in the systems integration and projects and pushing the innovation agenda further. At the same time, like prior downturns, of course, cost and spending comes under scrutiny. And so I think it's a matter of we're seeing a bit more tempered than in prior economic cycles like this. And I think we're going to recover maybe a little bit sooner, but time will tell. But that's the discussions that I'm having to give you the color commentary there.

不，這就是我會看到的。我個人在歐洲待了一周，並走遍了整個北美。我聽到的是我提到過這一點，這有點兩難。一位客戶是這樣告訴我的。他們知道，為了實現業務目標，他們需要繼續在 IT 方面進行投資，而不僅僅是託管服務，還需要在其他一些領域進行投資，包括系統整合和項目，並進一步推動創新議程。同時，就像之前的經濟低迷一樣，成本和支出當然受到嚴格審查。所以我認為問題是我們看到的經濟比之前的這樣的經濟週期更溫和。我認為我們可能會更快恢復，但時間會證明一切。但這就是我必須在那裡給你們提供色彩評論的討論。

Great. On the restructuring initiative, is that pretty broad-based in terms of across the business units? Or is it really more focused on the subset of the business?

偉大的。關於重組計劃，就跨業務部門而言，其基礎是否相當廣泛？或者它真的更關注業務的子集嗎？

No. It's broad-based across everywhere. As you know, our SG&A, we run a proximity model and our SG&A is embedded in those geographies. So it's pretty broad-based. And again, it's focused on both real estate and the costs associated with running our own business and then, of course, introducing just like we're doing for our clients, introducing more global delivery and more automation into the process. So that's what we're focused on.

不。它的基礎廣泛，遍及各地。如您所知，我們的 SG&A，我們運行鄰近模型，並且我們的 SG&A 嵌入到這些地區。所以它的基礎相當廣泛。再說一次，它關注的是房地產和與經營我們自己的業務相關的成本，然後，當然，就像我們為客戶所做的那樣，在流程中引入更多的全球交付和更多的自動化。這就是我們關注的重點。

Your next question comes from Paul Treiber from RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Paul Treiber。

Just a couple of questions here. Just on constant currency growth has decelerated, it applies mostly to SI&C, but then managed services bookings are strong. So what's your outlook for constant currency growth in the near term, just with the strong managed services bookings? When do you see those helping offset the slowness in SI&C?

這裡只有幾個問題。就貨幣持續成長放緩而言，這主要適用於 SI&C，但託管服務預訂量強勁。那麼，在託管服務預訂量強勁的情況下，您對近期貨幣持續成長的前景有何看法？您什麼時候看到這些措施有助於抵消 SI&C 的緩慢成長？

Yes. So maybe I'll just start with kind of the revenue growth we did have, like you said, it is pretty centered both on managed services, but it's really spread differently across different industry and services. So we -- it is driven by government and health, which is strong in all of our geographies.

是的。因此，也許我會從我們確實實現的收入成長開始，就像您所說，它非常集中在託管服務，但它在不同行業和服務中的分佈確實不同。所以我們——它是由政府和衛生部門推動的，這在我們所有地區都很強大。

Financial Service is a little bit different. Insurance was strong. I think that's where you see probably the most pronounced weakness in SI&C and strength in IP and managed services. It's really in the banking space. Insurance, like I said, was pretty strong. And we're seeing that pretty much across, again, all geographies. And then, of course, utilities is strong (inaudible) you saw communication slowing. So in those industries that are a little more impacted by some of what's going on, including MRD, Manufacturing, Retail and Distribution, that's where you see maybe a little more pronounced in the SI&C and a little more opportunities in the managed services and IP, which again are strong across but that's kind of what we see.

金融服務有點不同。保險很強大。我認為這可能是 SI&C 中最明顯的弱點以及 IP 和託管服務中最明顯的優勢。這確實是在銀行領域。正如我所說，保險非常強大。我們在所有地區都看到了這一點。然後，當然，公用事業很強大（聽不清楚），你看到通訊速度減慢。因此，在那些受某些事件影響更大的行業中，包括 MRD、製造、零售和分銷，您可能會在 SI&C 中看到更明顯的情況，並且在託管服務和 IP 方面有更多的機會，這再次是強大的，但這就是我們所看到的。

And so if you look at the outlook then, those are the tailwinds or some of what I just mentioned, kind of built into our model and our approach are really those strong 12-month bookings -- trailing 12-month bookings and expanding pipeline, particularly in managed services, government, health and IP. But there are still some headwinds, particularly in Q1, we're still seeing some slower decision-making even on those managed services discretionary spending given some of the uncertainty from the clients as a headwind. And then we always have some normal year-end furloughs that we probably expect to be a little more pronounced this year, and that's just at the end of the year around the holidays and the new year. We see some -- particularly in banking, it's just a situation where the kind of almost slow down everything and then they start back up in the new year. So I think that's going to be a little more pronounced. So when you look at that, it's kind of harder to predict on a quarter basis. But overall, we think that the weighting will shift to the tailwinds that I just described as we move throughout the year.

因此，如果你看看前景，這些都是順風車或我剛才提到的一些東西，有點內置於我們的模型中，我們的方法實際上是那些強勁的12 個月預訂——跟踪12 個月的預訂和擴大管道，特別是在管理服務、政府、衛生和智慧財產權領域。但仍存在一些阻力，特別是在第一季度，考慮到客戶的一些不確定性作為阻力，即使在那些託管服務可自由支配支出方面，我們仍然看到一些決策速度較慢。然後我們總是有一些正常的年終休假，我們可能會預計今年會更加明顯，而且只是在年底假期和新年期間。我們看到了一些——特別是在銀行業，這只是一種幾乎所有事情都放慢速度，然後在新的一年又開始恢復的情況。所以我認為這會更加明顯。因此，當你看到這一點時，會發現按季度預測有點困難。但總體而言，我們認為隨著全年的發展，權重將轉向我剛才描述的順風車。

That's helpful. And then just in regards to the cost optimization, what's the typical target of annual cost savings to the investments that you anticipate? Or in other words, how do you think about the potential year-over-year margin expansion from those initiatives?

這很有幫助。然後就成本優化而言，您預期的投資年度成本節省的典型目標是什麼？或者換句話說，您如何看待這些措施可能帶來的年比利潤成長？

Steve?

史蒂夫？

Yes. Look, in terms of real estate, the payback is a bit longer. So it would be more than a year. But in terms of the action where we are using the global delivery and also automation, it's going to be faster and payback will be about a year.

是的。你看，就房地產而言，投資回收期要長一些。所以這會是一年多的時間。但就我們使用全球交付和自動化的行動而言，速度會更快，投資回報期約為一年。

Your next question comes from Richard Tse from National Bank.

您的下一個問題來自國家銀行的 Richard Tse。

With respect to the government vertical, what do you attribute that sort of strength to? Is it a vertical that historically -- I guess it has historically sort of played a bit of catch-up to commercial enterprises. Is that really the big driver here and maybe you can elaborate on that a bit, please?

就政府垂直領域而言，您將這種力量歸因於什麼？從歷史上看，它是一個垂直行業嗎？我想它在歷史上一直在追趕商業企業。這真的是這裡的主要驅動力嗎？也許您可以詳細說明一下嗎？

Yes. What we see is government tends to be a bit countercyclical. So when you go into times of periods of economic slowdown, what you see is governments get very active. They get active around policy initiatives to spur the economy, to help the citizens, et cetera. And so that's a lot of activities around us helping government implement their policy initiatives, which, by the way, always incorporate IT. And then the more you get of those policy initiatives, quite frankly, it puts more of a spotlight on kind of some of the modernization that has to happen so that they can actually implement those quicker. And so governments get more active on that front. And then finally, in general, governments do look to stimulate the economy. And so that's what we kind of see, we're in a period of that. And that governments around the globe, at least in the geographies that we're in, we're seeing that strength in governments, both in North America and across Europe.

是的。我們看到的是政府往往有點反週期。因此，當你進入經濟放緩時期時，你會看到政府變得非常活躍。他們積極參與刺激經濟、幫助公民等的政策措施。因此，我們周圍有很多活動幫助政府實施其政策舉措，順便說一下，這些活動總是將 IT 納入其中。坦白說，你獲得的這些政策舉措越多，它就越會關注必鬚髮生的一些現代化，以便他們能夠更快地實際實施這些舉措。因此，各國政府在這方面變得更加積極。最後，總的來說，政府確實希望刺激經濟。這就是我們所看到的，我們正處於這樣一個時期。全球各地的政府，至少在我們所在的地區，我們都看到了北美和整個歐洲政府的實力。

Okay. And then when you look at the existing base, it seems to be that it's still contributing a fair amount of growth here. So my guess is that some of these existing deals are expanding at a larger size or there's sort of add-ons there. Are there any sort of commonalities to sort of that expansion in terms of like the product area or service that you're looking for?

好的。然後，當你看看現有的基地時，它似乎仍然在這裡貢獻了相當大的成長。所以我的猜測是，其中一些現有交易正在以更大的規模擴張，或者有一些附加項目。在您正在尋找的產品領域或服務方面，這種擴張是否有任何共同點？

Well, actually, one of the common areas, and we did have a pretty strong new business in the quarter, 37% was new business. But you're right, there's a significant number of add-ons. A lot of that is clients looking to consolidate their partners for both quality and efficiency purposes. And so it's not necessarily focused on a specific function. It's more about adjacencies to the work that we're doing to expand that, consolidate some of their partners again for both quality, which CGI is known for and then also the efficiency purposes, which includes us being able to, as a bigger partner with bigger volumes, be able to provide better cost savings to the client.

嗯，實際上，這是一個共同領域，我們在本季確實有相當強勁的新業務，37% 是新業務。但你是對的，有大量的附加元件。其中許多客戶希望出於品質和效率的目的整合其合作夥伴。因此它不一定專注於特定功能。更多的是與我們正在做的工作相鄰，以擴大這一範圍，再次整合他們的一些合作夥伴，以提高品質（CGI 以其聞名）和效率目的，其中包括我們能夠作為更大的合作夥伴更大的產量，能夠提供客戶更好的成本節約。

Okay. And just one last quick one for me. In terms of capital allocation, you've been fairly active on the buyback. Do you think a dividend is sort of entering the next year over the next 12 months as part of that capital allocation?

好的。對我來說，這只是最後一件事。在資本配置方面，你們在回購方面相當積極。您認為股息是否會作為資本配置的一部分在未來 12 個月內進入明年？

Yes. We look at that capital allocation at the Board meeting when we look at our NCIB and our use of cash. So it continues to be a discussion. Right now, given what I just described about the outlook, not just this current environment, but the next wave of growth, particularly around AI and the opportunities in M&A, I don't see that right now. But of course, we'll have that discussion.

是的。當我們查看 NCIB 和現金使用時，我們會在董事會會議上查看資本分配。所以這仍然是一個討論。目前，考慮到我剛才描述的前景，不僅是當前的環境，而且是下一波成長，特別是圍繞人工智慧和併購機會，我現在不認為這一點。但當然，我們會進行討論。

Usually, we are renewing our NCIB program early Feb. So we'll come back to that, obviously, with the Board and discuss that at the Board meeting in February.

通常，我們會在 2 月初更新 NCIB 計劃。因此，顯然，我們會與董事會一起討論這個問題，並在 2 月的董事會會議上進行討論。

But what I can say in the meantime is we will be active in returning cash through the -- returning cash to our shareholders through the stock buyback program.

但同時，我可以說的是，我們將積極透過股票回購計畫向股東返還現金。

Your next question comes from Divya Goyal from Scotiabank.

您的下一個問題來自豐業銀行的 Divya Goyal。

George and Steve, if you could provide some colors specifically on the geographic segment, we noticed that the U.S. commercial in the Western and Southern Europe segment saw a decline in revenues. If you could provide some sort of directional guidance on how do you see some of these segments trending? I know last quarter, Canada was a weaker segment. How do you see some of these segments progressing on a go-forward basis?

喬治和史蒂夫，如果您能具體提供一些關於地理區域的顏色，我們注意到美國商業廣告在西歐和南歐區域的收入有所下降。您是否可以提供某種方向性指導來說明您如何看待其中一些細分市場的趨勢？我知道上個季度，加拿大是一個較弱的市場。您如何看待其中一些細分市場的進展？

Yes. And thanks for the question, Divya, and thanks for noting that, as we talked about, Canada has returned back to growth in the quarter. In U.S. commercial and state government, maybe I'll take that one first. Certainly, what we do see is that some of the growth that we would naturally have is masked by some of it moving on the managed services side to global delivery. So you saw again some growth there, strong growth in global delivery. So we're moving more of that U.S. work to global delivery. And in fact, we're seeing a lot of interest, continued interest in global delivery. In fact, I was just in India last month for clients. I can tell you that the interest is palpable right now.

是的。感謝 Divya 提出的問題，也感謝您指出，正如我們所討論的，加拿大在本季恢復了成長。在美國商業和州政府，也許我會先考慮這個。當然，我們確實看到的是，我們自然會實現的一些成長被託管服務方面向全球交付的一些成長所掩蓋。所以你再次看到了一些成長，全球交付的強勁成長。因此，我們正在將更多美國工作轉移到全球交付。事實上，我們看到了人們對全球交付的濃厚興趣，持續的興趣。事實上，我上個月才剛在印度拜訪客戶。我可以告訴你，現在人們的興趣是顯而易見的。

In fact, our Q4 client business to the India offices, just the India offices alone this quarter. If we go back, and I didn't go back a year ago and, of course, it's higher. But I went all the way back to 2019, which is the last quarter prior to the pandemic. That's a good benchmark quarter for us, twice as many client visits to our India offices. So a lot of movement towards global delivery, of course, that masks some of the segment growth. And then we had strong IP growth, but we're moving IP more to a Software-as-a-Service that's up in the quarter, as Steve mentioned. And so that actually masked some of the growth.

事實上，我們第四季的客戶業務轉向了印度辦事處，本季僅印度辦事處。如果我們回去，一年前我沒有回去，當然，它會更高。但我一路回到了 2019 年，也就是疫情爆發前的最後一個季度。這對我們來說是一個很好的基準季度，造訪我們印度辦事處的客戶數量是我們的兩倍。當然，全球交付的大量舉措掩蓋了部分細分市場的成長。然後我們的智慧財產權成長強勁，但正如史蒂夫所提到的那樣，我們正在將智慧財產權更多地轉移到本季成長的軟體即服務中。所以這實際上掩蓋了一些成長。

Having said that, I think we'll still see some softness in SI&C, particularly in the financial services area. Those furloughs I mentioned in the year will still has this next quarter. But as we move throughout the year, I think you'll see the growth there in the U.S. commercial. Similar story, a bit in Western and Southern Europe. Maybe 1 caveat, the 1 day, probably hit them a little harder in the quarter. So again, I think you're going to see these are traditionally very strong, well-managed organizations with a good diverse portfolio of clients. So I'm not very concerned about that.

話雖如此，我認為我們仍然會看到 SI&C 的一些疲軟，特別是在金融服務領域。今年我提到的那些休假將在下個季度仍然存在。但隨著我們全年的發展，我想你會看到美國商業廣告的成長。類似的故事也發生在西歐和南歐。也許有一個警告，即第一天，可能會在本季對他們造成更大的打擊。再說一遍，我認為您會看到這些傳統上非常強大、管理良好的組織，並擁有良好的多元化客戶組合。所以我對此不太關心。

That's helpful. And maybe if I may ask a question on the M&A. I know it's been an important strategic priority for CGI. But could you give some color on the M&A pipeline? And I know it's a slightly different question, but how are you prioritizing M&A as compared to the $1 billion investment allocation in AI on the side as well?

這很有幫助。也許我可以問一個關於併購的問題。我知道這一直是 CGI 的重要策略重點。但您能否對併購管道進行一些說明？我知道這是一個略有不同的問題，但與人工智慧方面 10 億美元的投資分配相比，您如何優先考慮併購？

Yes. Well, here's how I look at that. The -- we're prioritizing them both. The -- and they kind of come together where some of those M&A will provide us AI capabilities and skills. And so that's something that -- where they kind of converge. But the $1 billion is really over a period of 3 years. Focus right now, more on the training and the partnerships, I just announced the partnership with Google. But it's the partnership, the alliances and it's our intellectual property. On the M&A side, it's really about building out that scale through additional relationships with clients. So they're both prioritized. You saw the cash generation we have. We've got plenty of cash generation to invest in both as priority elements in our go-forward plan.

是的。嗯，我是這麼看的。我們正在優先考慮它們。他們聚集在一起，其中一些併購將為我們提供人工智慧能力和技能。這就是他們的共同點。但10億美元實際上是3年的時間。現在的重點是，更多地關注培訓和合作夥伴關係，我剛剛宣布與Google建立合作關係。但這是夥伴關係、聯盟，也是我們的智慧財產權。在併購方面，實際上是透過與客戶的額外關係來擴大規模。所以他們兩個都是優先的。您看到了我們的現金產生能力。我們有大量的現金產生可以投資於這兩個方面，作為我們未來計劃的優先要素。

Your next question comes from Stephanie Price from CIBC.

您的下一個問題來自 CIBC 的 Stephanie Price。

Maybe just following up on Divya's question on M&A. So Momentum was the first M&A deal that CGI has done in several quarters. Just if you can elaborate a little bit on what you're seeing in the M&A market at this point? And also curious if you wanted to provide an M&A target for the coming year. I know you had that $1 billion target last year.

也許只是跟進 Divya 關於併購的問題。因此，Momentum 是 CGI 幾個季度以來完成的第一筆併購交易。您能否詳細說明一下目前在併購市場中看到的情況？我也很好奇您是否想提供來年的併購目標。我知道您去年的目標是 10 億美元。

Yes. So on the M&A kind of landscape, as I mentioned, it's -- the valuations have been jumping around. There was a bit of a disconnect that we talked about over the last several quarters. But valuations are definitely, as I mentioned, moving into a more reasonable range. And so we're very -- remain very active.

是的。因此，正如我所提到的，在併​​購領域，估值一直在跳躍。在過去的幾個季度中，我們談到了一些脫節。但正如我所提到的，估值肯定正在進入更合理的範圍。因此，我們仍然非常活躍。

Looking at the pipeline, the pipeline, quite frankly, even some of the pipeline is being refilled with some activity we had in the past that maybe the valuations were far apart and they're coming back together. And so the pipeline has both new entrants, but also some that we're very familiar with and been in discussions with before. That bodes well for the activity here in the coming quarters. So that can maybe give you some idea of kind of how that pipeline is shaping up and what the market looks like. And again, in this type of a period, a slowdown, it helps companies to come together. And so again, I think there's a richer opportunity set. But for that reason, given where the volatility was and now where it's going, we're not setting a specific target, but again, it's a priority for us in the coming year.

看看管道，坦白說，甚至一些管道正在重新填充我們過去進行的一些活動，也許估值相差甚遠，但它們正在回歸到一起。因此，該管道既有新進入者，也有一些我們非常熟悉並之前討論過的人。這對未來幾季的活動來說是個好兆頭。因此，這也許可以讓您了解該管道的形成方式以及市場的情況。再說一次，在這種經濟放緩的時期，它有助於公司團結起來。同樣，我認為還有更豐富的機會。但基於這個原因，考慮到波動的情況和現在的走勢，我們沒有設定具體目標，但同樣，這是我們來年的首要任務。

Perfect. And then just in terms of bookings, obviously, been very solid despite the uncertain macro here. Just curious if you could expand a little bit on what you're seeing around pipeline conversion and the decision cycle? Just curious how confident you're feeling in being able to replenish bookings as we kind of look ahead here?

完美的。然後就預訂而言，顯然，儘管宏觀環境不確定，但仍然非常穩定。只是好奇您是否可以擴展一下您在管道轉換和決策週期方面所看到的內容？只是好奇，當我們展望未來時，您對補充預訂有多大信心？

Yes. I'm feeling very good about the bookings outlook given some of the opportunity set, as I mentioned, some of the discussions we've had with clients, the visits that we've taken with them to our operations around the globe because it's not just offshore, it's really that whole global delivery model that is attractive to clients right now. And I do believe that as we move throughout the year, I think you'll see for all the reasons I outlined around business needs, you'll see some of that even SI&C coming back. And remember, it's not every industry that SI&C is not remaining strong. There's, like I said, in government and in health, life sciences and even insurance utilities, you see some of that SI&C remaining. So I think we're feeling pretty good about the outlook.

是的。我對預訂前景感覺非常好，因為正如我所提到的，我們與客戶進行了一些討論，並與他們一起參觀了我們在全球各地的業務，因為這不是就近海而言，目前真正對客戶有吸引力的是整個全球交付模式。我確實相信，隨著我們全年的發展，我認為您會看到我圍繞業務需求概述的所有原因，您會看到其中一些甚至 SI&C 又回來了。請記住，SI&C 並不是每個行業都無法保持強勢。正如我所說，在政府、健康、生命科學甚至保險公用事業領域，您會看到一些 SI&C 仍然存在。所以我認為我們對前景感覺很好。

And the other is that they're bigger deals. And so we're looking at bookings that are bigger size, some of that consolidation that's going on. So we're feeling still pretty good. Of course, bookings are always lumpy. And to the one part of your question, yes, we do see that just given the environment, the decisions tend to be a bit slower. And so we did have a number of deals, in fact, slip, including in some of the areas where we had very strong bookings like U.S. CSG, we had some bookings that actually slipped from the fourth quarter to the first quarter. So we are still seeing some of that happen. And that's just natural in the current environment.

另一個是它們是更大的交易。因此，我們正在考慮規模更大的預訂，其中一些整合正在進行中。所以我們的感覺還是很好的。當然，預訂總是不穩定。對於你問題的一部分，是的，我們確實看到，鑑於環境，決策往往會慢一些。因此，我們確實有很多交易，事實上，下滑了，包括在一些我們預訂量非常強勁的領域，例如美國 CSG，我們的一些預訂量實際上從第四季度下滑到了第一季。所以我們仍然看到其中一些發生。在當前環境下，這是很自然的。

Your next question comes from Jerome Dubreuil from Desjardins.

您的下一個問題來自 Desjardins 的 Jerome Dubreuil。

Just want to make sure we're all on the same page in terms of your outlook for '24. You mentioned you expect revenue growth to be consistent with the IT demand environment. If I'm looking quickly at what Gartner expects for 2024, they're in the high single digits, that seems a bit high and maybe you're not referring to that and (inaudible) is not exactly the same period given your fiscal year. So if you can provide a bit more detail on this please.

只是想確保我們在您對“24”的展望方面意見一致。您提到您預期營收成長將與 IT 需求環境保持一致。如果我快速查看 Gartner 對 2024 年的預期，它們處於較高的個位數，這似乎有點高，也許您沒有提到這一點，而且（聽不清楚）與您的財年的時期並不完全相同。因此，如果您可以提供更多詳細資訊。

Yes. We don't give guidance, as you know, Jerome, but the current market, it's not really what Gartner says, it's really what the market actually is producing. And that's right now is obviously in the low single digits. So that's where we are today. I do believe that's going to evolve as we move throughout the year. I think the back half of the year will be stronger than the front half of the year here regarding everything I talked about. But for us, we can't control the decision-making speed and the market, but we do control the model and the approach that we have.

是的。如你所知，Jerome，我們不會提供指導，但目前的市場並不是 Gartner 所說的那樣，而是市場實際產生的。現在這顯然是低個位數。這就是我們今天的處境。我確實相信，隨著我們全年的發展，這種情況將會改變。我認為就我所談論的一切而言，今年下半年將會比上半年更加強勁。但對我們來說，我們無法控制決策速度和市場，但我們可以控制我們擁有的模型和方法。

Resilience to economic slowdowns is built into our model, managed services at 55% of the revenue in Q4 and 60% of the bookings gives us that long-term outlook intellectual property. 22.6% of revenue in Q4 and rising. It's sticky, it's recurring. So that's going to be a focus of ours. And then as I mentioned, the government industry work now at 37%, up 20 basis points, it tends to be countercyclical. So we feel pretty confident in where we're going. We're really going to focus on the things that we can control. And like I said, I think those tailwinds in that approach and that model outweigh some of the headwinds. I can't tell you exactly what those -- how those headwinds book as we move through the year, but that's why we feel pretty confident. And that's why we believe we can continue to deliver that double-digit EPS accretion.

我們的模型內建了對經濟放緩的抵禦能力，第四季度收入的 55% 的託管服務和預訂的 60% 為我們提供了知識產權的長期前景。佔第四季營收的 22.6%，而且還在不斷上升。它很粘，反覆出現。所以這將是我們的重點。然後如我所提到的，政府產業現在的工作率為 37%，上升了 20 個基點，它往往是反週期的。所以我們對我們的前進方向非常有信心。我們真的會專注於我們可以控制的事情。就像我說的，我認為這種方法和模型的順風大於一些逆風。我無法確切地告訴你這些是什麼——在我們度過這一年的過程中，這些逆風是如何發生的，但這就是為什麼我們感到非常有信心。這就是為什麼我們相信我們可以繼續實現兩位數的每股盈餘成長。

Yes. That's very helpful. And then second, a bit related and a different angle on bookings. We've seen you had very strong bookings, obviously, not exactly the same trend as we're seeing in the revenue, and we've seen it for some of the global peers as well. Is there a difference in terms of trends you're seeing in terms of booking conversion to revenue? Maybe some of the contracts that were already booked that are taking a little bit longer to translate into revenue? Is this something you're seeing right now?

是的。這非常有幫助。其次，與預訂有關的一點相關且不同的角度。我們看到你們的預訂量非常強勁，顯然，這與我們在收入中看到的趨勢並不完全相同，而且我們也看到了一些全球同行的情況。您所看到的預訂轉化為收入的趨勢是否有差異？也許一些已經預訂的合約需要更長的時間才能轉化為收入？這是你現在看到的嗎？

Yes. Well, there's 2 things going on as we talked about in the last couple of calls, the conversion for managed services always takes a little longer because you have a transition. Same goes for IP. In many cases, particularly, if it's a Software-as-a-Service, but there's implementation associated with it at the beginning. So there is just naturally a longer cycle there. And of course, that's at the same time that, that shorter-term revenue is under some pressure. And so it's just a matter of timing and balancing those out. I think we're on the back end of that type of situation. I don't think we're past it yet, just given the dynamics that we see going on and a little bit of the slowness, not just even in making the decision, but then going from decision to starting the projects. It's just taking a little bit longer. But with the model that CGI has being ROI-led, that's kind of our antidote to some of that slowness because we put that business case right in front of the client, and we all align on it. That's our antidote, but still a little bit slowness there.

是的。嗯，正如我們在過去幾次通話中談到的，有兩件事正在發生：託管服務的轉換總是需要更長的時間，因為您需要轉換。 IP 也是如此。在許多情況下，特別是如果它是軟體即服務，但一開始就有與之相關的實作。所以自然有一個較長的周期。當然，同時，短期收入也面臨一些壓力。因此，這只是一個時間安排和平衡這些問題的問題。我認為我們正處於這種情況的後端。我認為我們還沒有過去，只是考慮到我們所看到的動態和一點點緩慢，不僅是在做出決定方面，而且是從決定到啟動專案。只是需要的時間稍微長一點而已。但是，透過 CGI 以 ROI 為主導的模型，這可以說是我們解決某些緩慢問題的解藥，因為我們將業務案例放在客戶面前，我們都對此保持一致。這是我們的解藥，但還是有點慢。

Your next question comes from Robert Young from Canaccord Genuity.

您的下一個問題來自 Canaccord Genuity 的 Robert Young。

Maybe just a quick question on M&A. I think in the prepared comments, you emphasized building critical mass and strategic metro markets. I didn't hear anything about large deals, but then in response to one of the questions, you said that the deals are getting larger. And so is that larger metro markets? Or are you still evaluating larger -- I mean maybe mega deals? And what would be the biggest things that prevents CGI from looking at or executing on the very large deals?

也許只是一個關於併購的簡單問題。我認為在準備好的評論中，您強調建立關鍵的大眾和策略性地鐵市場。我沒有聽說任何有關大型交易的消息，但在回答其中一個問題時，您說交易規模越來越大。那是更大的地鐵市場嗎？或者您仍在評估更大的交易——我的意思是也許是大型交易？阻礙 CGI 審查或執行大型交易的最大因素是什麼？

We're still active in looking at larger acquisition targets. I don't -- when I talk about what we're trying to do in M&A is build out those metro markets, it's both for the small ones and the large ones. We look at large targets that have operations across Europe and North America. When we integrate it, it will still help us in specific metro market. So it really is -- it works on both sides of the avenues. So thanks for asking for the clarification because we are looking at both -- there's no real hurdles from a valuation, from an integration, obviously, from an access to capital perspective for us to do a larger one. It really is about making sure that they are accretive and making sure that we have an understanding of how we would make that accretive. And as we discussed in the past, some companies aren't in a position where we could make that happen. So that's what we're discerning on. But there's no -- there's absolutely no barrier from an internal integration or access to capital perspective, or appetite, quite frankly.

我們仍在積極尋找更大的收購目標。我不——當我談到我們在併購中試圖做的事情是建立這些都市市場時，它既適用於小型市場，也適用於大型市場。我們著眼於在歐洲和北美開展業務的大型目標。當我們整合它時，它仍然對我們在特定的地鐵市場有幫助。事實確實如此——它在大道兩邊都有效。因此，感謝您要求澄清，因為我們正在考慮兩者——顯然，從估值、整合、從獲得資本的角度來看，我們做更大的事情都沒有真正的障礙。這實際上是為了確保它們具有增值性，並確保我們了解如何使其增值。正如我們過去討論的那樣，有些公司無法讓我們實現這一目標。所以這就是我們要辨別的。但坦白說，內部整合、資本觀點或興趣絕對不存在任何障礙。

Okay. That's great. I'm curious about the pace of hiring and the restructuring. I know the emphasis has been on your global delivery. You're growing the mix there. Is attrition slowing down? And then I'm just trying to maybe get drive to the impact on utilization and eventually margins from the hiring and maybe a different hiring environment.

好的。那太棒了。我對招募和重組的速度感到好奇。我知道重點是你們的全球交付。你正在那裡增加混合。消耗速度是否正在放緩？然後我只是想了解招募以及不同的招募環境對利用率和最終利潤的影響。

Yes. Well, look, the turnover continues to be below the industry average, but our turnover is also well below. I just looked at these numbers well below the pre-pandemic levels. And that's important to note because if you look at where we were just right before the pandemic, of course, it dropped during the pandemic and then rose again. But now we're back below where we started even before the pandemic. That does have a -- it's an opportunity for us because then it allows us to be a little more discerning on the hiring. At the same time, of course, hiring has eased and the difficulty of getting the hires. So we can -- all this adds up to, we can be really focused on keeping the utilization high, not hiring in advance of the demand, not having to hire as much for replacement. And so that puts us in a better spot from a talent perspective.

是的。嗯，你看，營業額繼續低於行業平均水平，但我們的營業額也遠低於。我剛剛看到這些數字遠低於大流行前的水平。值得注意的是，如果你看看我們在大流行之前的情況，當然，它在大流行期間下降，然後又上升。但現在我們甚至回到了大流行之前的起點以下。這確實對我們來說是一個機會，因為這樣我們就可以在招募時更加挑剔。當然，同時，招募和招募難度也有所緩解。所以我們可以——所有這些加起來，我們可以真正專注於保持高利用率，而不是在需求出現之前招聘，也不必僱用那麼多的人來替換。因此，從人才角度來看，這使我們處於更好的位置。

Great. And then that growth in or the emphasis on hiring in global delivery, I assume that's mostly in India. Has that become an easier place for you to find good talent? Are you relatively -- given if attrition is low and it's a better hiring environment and visits are up 2x from last year. Are you able to get the people that you need? Or is it easier to get the people you need relative to during the pandemic?

偉大的。然後，全球交付的成長或對招募的重視，我認為這主要是在印度。這是否成為您更容易找到優秀人才的地方？如果人員流失率較低、招聘環境更好且訪問量比去年增加了 2 倍，那麼您是否相對而言。你能找到你需要的人嗎？或者在大流行期間更容易找到您需要的人嗎？

I hate to say easy because it's -- talent is always -- is an important one. But yes, it has eased. Our value proposition, particularly in India, like I said, I was just there. It's a pretty strong value proposition. And so we're doing quite well. And remember, though, we also look to build our own. And so we bring a lot of individuals, very talented individuals out of school, put them through various training programs. So we can also build our own. And so it's a combination of those factors.

我討厭說“容易”，因為天賦總是很重要。但是是的，情況已經有所緩解。我們的價值主張，特別是在印度，就像我說的，我就在那裡。這是一個非常強大的價值主張。所以我們做得很好。但請記住，我們也希望建立自己的。因此，我們將許多非常有才華的人帶出學校，讓他們接受各種訓練計畫。所以我們也可以建立自己的。所以這是這些因素的結合。

Last little one, end of year budget flush, given government is so strong. And I mean, I know there's the looming shutdown again. But is that a factor at the end of the year across your business? Or does the macro change any opportunity for budget flush in the pipeline?

最後一點是，考慮到政府如此強大，年底預算會充裕。我的意思是，我知道即將再次關閉。但這是您公司年底的因素嗎？或者宏觀經濟會改變正在醞釀中的預算充裕的機會？

Yes. Are you asking from Q4? Or are you asking for Q1?

是的。你是從Q4開始問的嗎？還是你問的是Q1？

Yes. So at the end of the year, so fiscal Q1, I guess.

是的。我想是今年年底，也就是第一財季。

Yes. So actually, the government fiscal year was -- in the U.S., for example, was the same as CGI's fiscal year. So we saw a little bit of bump from that. But no, I don't think you're going to see a bump from that specifically here as we move through. I think it's getting more of the other factors that I mentioned around policy initiatives and around stimulating income.

是的。事實上，例如在美國，政府的財政年度與 CGI 的財政年度相同。所以我們看到了一點點的衝擊。但不，我認為當我們通過時，你不會看到特別是在這裡的碰撞。我認為它更多地體現了我提到的圍繞政策舉措和刺激收入的其他因素。

And outside of government? Is there anything budget flush wise?

那麼在政府之外呢？有什麼明智的預算嗎？

Well, unfortunately, it's not so much budget flush on the commercial side. Unfortunately, what we're going to see, I think, a bit of is that at end of year kind of slow down, temporary shutdowns of various clients where they just slowed down all the projects until the beginning of the next year. So I think it's going to almost be the opposite of a flush.

不幸的是，商業方面的預算並不充裕。不幸的是，我認為我們將看到的是，在年底，各種客戶的速度會放緩，暫時關閉，他們只是放慢了所有項目，直到明年年初。所以我認為這幾乎與同花相反。

(Operator Instructions) Your next question comes from Daniel Chan from TD Cowen.

（操作員說明）您的下一個問題來自 TD Cowen 的 Daniel Chan。

I just wanted to dig into a point you made earlier about the backlog. Can you give us a sense of where you are in converting that managed services backlog into revenue? And is the expectation still for organic growth to accelerate from here as that backlog gets converted? Or have some of the macro factors that you pointed out kind of tempered that expectation?

我只是想深入探討您之前提出的有關積壓的觀點。您能否讓我們了解一下您在將託管服務積壓轉化為收入方面的進展？隨著積壓訂單的轉化，有機成長是否仍有望從現在開始加速？或者您指出的一些宏觀因素是否會緩和這種預期？

Yes. The -- I think your last point is a true one. We're seeing some of that managed services from the beginning of the year already come into some of the revenue, but the -- it's being counteracted by some of the macro trends we're discussing. Having said that, we just had 60% of a very strong bookings quarter of 114% come in to the backlog. And so that will be working its way through over the next couple of quarters. So it really is going to be, like I said, I think the tailwinds will more than overcome the headwinds as we move through the year. But point in time and when that happens, that's something we'll have to stay close to.

是的。我認為你的最後一點是正確的。我們看到，從今年年初開始，一些託管服務已經帶來了一些收入，但它正在被我們正在討論的一些宏觀趨勢所抵消。話雖如此，在非常強勁的預訂季度（114%）中，我們只有 60% 出現積壓。因此，這將在接下來的幾個季度中發揮作用。所以，正如我所說，我認為在這一年中，順風將遠遠超過逆風。但當這種情況發生時，我們必須密切注意。

Okay. That's helpful. I also wanted to double click on the point you made earlier where new businesses bookings were 37% this quarter, and that's the highest mix we've seen this year, which is great to see. So anything to call out there in terms of the new business mix being so high, which seems to be counter to what we're seeing in the macro with all the uncertainty?

好的。這很有幫助。我還想雙擊您之前提出的觀點，即本季新企業預訂率為 37%，這是我們今年看到的最高組合，這很高興看到。那麼，就新業務組合如此之高而言，有什麼值得指出的嗎？這似乎與我們在宏觀經濟中看到的充滿不確定性的情況相反？

Yes. I think it's really a matter of the investments we were making in getting our story and our message out to the market. We've got targeted campaigns to bring the value proposition we have to both new clients but also existing clients in new areas that we have not worked in. And so I think it's just a realization of some of the investments that we've made over the past couple of years.

是的。我認為這實際上是我們為向市場傳播我們的故事和訊息而進行的投資的問題。我們開展了有針對性的活動，將我們的價值主張帶給新客戶，也給我們尚未涉足的新領域的現有客戶。所以我認為這只是我們已經進行的一些投資的實現過去幾年。

There are no further questions at this time. I'll turn it over to Kevin for closing remarks.

目前沒有其他問題。我將把它交給凱文做總結發言。

Thanks, everyone, for participating. As a reminder, a replay of the call will be available either via our website or by dialing 1877-674-7070 and using the passcode 584974. As well, a podcast of this call will be available for download within a few hours. Follow-up questions can be directed to me at 1905-973-8363. Thanks again, everyone, and I look forward to speaking soon.

謝謝大家的參與。謹此提醒，您可以透過我們的網站或撥打 1877-674-7070 並使用密碼 584974 重播本次通話。此外，本次通話的播客將在幾個小時內可供下載。後續問題可以直接聯絡我：1905-973-8363。再次感謝大家，我期待著盡快發言。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。