CGI Inc. (GIB) Earnings Call Transcript & Summary

[Foreign Language] [Interpreted] Hello, everyone. My name is Benoit DubA, and on behalf of the Board of Directors and senior management, I would like to welcome you to CGI's Annual General Meeting of Shareholders. The meeting will be conducted in French and English and simultaneous interpretation is available. [Operator Instructions] The webcast platform allows shareholders to ask questions and allows shareholders and duly appointed proxy holders to vote during the meeting if they haven't not already done so. We would now like to draw your attention to the information on the screen. Our presentations and statements made during the meeting may be forward-looking and subject to risks and uncertainties. Therefore, we recommend that you review and consider all relevant risk factors identified in our continuous disclosure documents and not place undue reliance on them. We would like to remind you that only persons whose names appeared in the register of shareholders at the close of business on Monday, December 1, 2025, our reference date and duly appointed proxy holders are entitled to vote at the meeting. If you have not already voted and wish to vote during the meeting, please follow the instructions in the notice of meeting and the management proxy circular as well as a form of proxy or voting instructions form. Please use the window on the right-hand side of your screen to review the items submitted for voting. You must make your selection and confirm each vote afterwards. You can vote at each motion or wait until the last item on the agenda has been put to the vote. All votes cast by registered shareholders or duly appointed proxy holders during the meeting shall be counted and added to the votes received by proxy. Proxy holders may submit questions at any time during the meeting by using the question box at the bottom left of your screen. [Operator Instructions] Questions will be answered during the Q&A session following the adjournment of the formal part of the meeting. I would now like to invite Mrs. Julie Godin, Executive Chair of the Board of Directors, to open the meeting.

Thank you, Benoit. [Foreign Language] [Interpreted] Ladies and gentlemen, good day. I'm very glad to have you with us today. Before we begin, I would like to introduce my colleagues, Serge Godin, CGI Founder and Co-Chair of the CGI Board of Directors; Francois Boulanger, President and Chief Executive Officer; Steve Perron, Executive Vice President and Chief Financial Officer; and Benoit DubA, Executive VP, Legal and Economic Affairs and Corporate Secretary. In accordance with the notice of meeting that you received, our proposed agenda is as follows: presentation of financial results for the fiscal year ended September 2025, election of the Board of Directors', appointment of the auditor and shareholders' proposals. We will then close the meeting and Q&A period will follow. Please note that I will act as meeting's chair. And Benoit Dubé will act as Secretary. Benoit, were notices and other relevant documents sent to shareholders?

[Interpreted] Madam Chair, CGI has used the Canadian rules on notification access for the distribution of meeting documents to shareholders. The shareholders received a notice of meeting and notice of availability of meeting materials. This notice explains how to access the documents online and request a paper copy of the documents and presents the agenda items for the meeting. Shareholders also received a voting instruction form or form of proxy. We also received confirmation that the relevant materials have been made available to the shareholders entitled to vote. As Secretary, I'm including a copy of the notice of meeting, the management proxy circular, the affidavit and other documents distributed in relation to this AGM in the meeting record.

[Interpreted] Thank you, Benoit. In accordance with Section 8 of the company's bylaws, I hereby appoint Steve Gilbert and [ Vlad Telibasa ] of Computershare to act as scrutineers for the meeting. I have been advised that we have a quorum. I would like to have the scrutineers to submit the report to the Secretary as soon as it is ready. The report will be filed along with the minutes of the last shareholders' general meeting held on January 29, 2025. The first item on the agenda is the presentation of the results for the fiscal year ended September 30, '25, including the financial statements, the auditor's report and the management discussion and analysis. These documents were previously made available to shareholders and a paper copy was sent to shareholders who requested it. The documents are also available on cgi.com as well as on this platform. They have also been filed with the appropriate regulatory authorities. Since you've had the opportunity to review them, I would ask the secretary to include these documents in the meeting record. Before continuing, I would like to note that Mr. Frank Witter has decided not to stand for reelection as a Director this year. Frank served on the Board of Directors and as a member of its Audit and Risk Management Committee for 5 years. On behalf of the Board of Directors and all CGI partners, I would like to warmly thank him for his valuable guidance, insight and significant contribution to the success of our company. I declare the nominations open. On the recommendation of the Corporate Governance Committee, the Board of Directors proposes that the following 13 nominees be elected as Directors of the company. I am proud to introduce the nominees for election to our Board of Directors, Francois Boulanger, Sophie Brochu, George Cope, Jacynthe Côté, Serge Godin, Gilles Labbé, Michael Pedersen, Stephen Poloz, Mary Powell, Alison Reed, George Schindler, Kathy Waller and myself. I would therefore ask for a motion for the election of directors, please.

[Interpreted] My name is [ David Marinot ] and I'm a shareholder of CGI. I move that the 13 people who were just introduced by the meeting chair, be elected to the company's Board of Directors.

[Interpreted] Thank you Mr. [ Marinot ]. [ I am proud to introduce the nominees ] for election to our Board of Directors. The appointment of the auditor is the next item on the agenda. The Board of Directors on the recommendation of the Audit and Risk Management Committee proposes that PricewaterhouseCoopers be reappointed as the company's auditor. I would now ask for a motion for the appointment of the auditor, please?

[Interpreted] My name is [ Kristina Wang ] and I'm a CGI shareholder. I move that PricewaterhouseCoopers be appointed as the company's auditor until the next Shareholders' Annual Meeting and that the Audit and Risk Management Committee be authorized to fix its compensation.

[Interpreted] Thank you, Ms. [ Wang ]. We are now ready to proceed with the vote. Please vote on the appointment of PricewaterhouseCoopers as CGI's auditor. [Foreign Language].

[Interpreted] Can you hear me?

[Interpreted] Yes.

My name is [ Willie Gagnon ]. I represent MEDAC. As you mentioned, the Mouvement d’éducation et de défense des actionnaires. We have been a shareholder of your company for a number of years. We submitted 4 proposals. Two of those had been submitted in the past. I will briefly mention them. As for proposal #1, regarding the participation to the AGM. Amongst the individual shareholders, you know that [ local ] society had various discussions last year on the various assumptions why they hadn't reached a quorum, so we would like to be able to identify amongst those causes. Those that are true causes because apparently, there would be systemic reasons. So we ask all companies to disclose the level of participation to AGM. So we would have liked CGI to give us a chart showing the number of institutional shareholders and compassion to the individual shareholders. If we had that, we would have not requested to call a vote on these proposals. Our Proposal #3 -- #2, it has to do with the practices of -- CGI's practices in view of the tensions with the United States. We would have liked CGI to directly mention these tensions with the United States, but there is not enough details according to us about this topic. So this is why I would call a vote on this proposal. We call upon all shareholders to adopt this under Proposal 2. It includes disclosing the results of the vote per share categories. We've had that question to various other companies and each company, we've asked that has accepted, except CGI. It's a CMP vote. It is according to the remuneration vote. You are practically the only company that doesn't do that, and we would like you to do so. And the company has publicly mentioned what is being done in -- for the individual shareholders. So that's done, but not about the 2 other points. This is why we call upon shareholders to vote on the proposals and the other proposal. Last year, we decided to withdraw it. It had to with the strike at Canada Post. So in the past, we had obtained almost 17% support to that proposal in the past. So we are asking that the AGM be held live not just in a virtual format because the virtual presentation does not replace everything that is taking place during a live meeting. So today, we are wondering why it's not the case. We would like to have the privilege of meeting you in person, at least once a year. And what we are asking you has been asked to all other companies, and they've all accepted to go back to a hybrid format, that is a live meeting plus a virtual presentation. Since the pandemic is over, it could be done. We're not against virtual events, but we'd like to have the hybrid format. So I've covered those 4 proposals. And we invite all shareholders to support our proposals. Thank you, Madam Chair.

[Interpreted] Well, Mr. [ Gagnon ], in the view of the -- what has been considered, we recommend voting against the 4 motions. We're now ready to vote. We will now take a 1-minute break to allow those who have not already done so to submit their votes. [Voting]

The poll is now closed. The scrutineers have confirmed the following preliminary results. All directors were elected with, on average, 98.4% of the votes cast. PricewaterhouseCoopers has been reappointed as auditor of the company with -- sorry, 99.4% of the votes cast. The 4 shareholder proposals have not been approved with, on average, 91.5% of the votes cast against them. The resolutions concerning the election of directors and the appointment of the auditor are therefore adopted and the 4 shareholder proposals are not. A report on the final vote results will be available on the SEDAR + website, and a report on the final results of the election of directors will be published in a press release. As all items of the meeting's agenda have been covered, I declare the formal part of the Annual General Shareholder Meeting closed. [Foreign Language] Steve?

Thank you, Julie. [Foreign Language] This morning, we announced our results for the first quarter of fiscal 2026. We recorded revenue of $4.1 billion, up 7.7% year-over-year or 3.4% when excluding the impact of foreign exchange. Bookings were $4.5 billion, representing a Q1 book-to-bill ratio of 110%. Our backlog remained strong at $31.3 billion or 1.9x our revenue. Earnings before income taxes in Q1 were $600 million for a margin of 14.7% of revenue. Adjusted EBIT in the quarter was $655 million, up 7.1% year-over-year for a margin of 16.1% of revenue. Net earnings were $442 million and diluted EPS was $2.03, representing an increase of 5.7% year-over-year. On an adjusted basis, Net earnings improved to $461 million for a margin of 11.3% of revenue and diluted EPS was $2.12, an accretion of 7.6% when compared to the same quarter last year. Cash provided by operating activities was $872 million, representing 21.4% of revenue. On a trailing 12-month basis, cash provided by operating activities represented 15.2% of total revenue. In Q1, we used our cash to invest $87 million into our business, including our AI investments, $106 million for business acquisition, and we returned $614 million to our shareholders through both the buyback of our stock and dividends. In addition, yesterday, our Board of Directors approved the renewal of our normal course issuer bid program until February 2027, authorizing us to purchase for cancellation up to $19 million of CGI share over the next 12 months. CGI's Board of Directors also approved a quarterly cash dividend of $0.17 per share. This dividend is payable on March 20, 2026, to shareholder of record as of the close of business on February 18, 2026. As part of our profitable growth strategy, CGI's capital allocation priorities continue to remain focused on investing back in the business and pursuing accretive acquisitions. Julie, over to you.

Thank you, Steve. Before I turn it over to Serge, I'd like to invite you to watch a short video featuring some members of our Board of Directors, who share their perspective on CGI's journey and what lies ahead. [Presentation]

There's never been a time where that was more important with what's happening now around digitization and AI and banks needing to transform legacy systems, they've never needed what we can provide more than they do today.

I've just been so excited by the transformation that I've seen CGI drive in their client work and helping advance all of the technological innovation that we need in energy to deliver the right experience for customers in the future.

CGI is perfect to be the adviser for those companies as they go through what looks like the biggest evolution we've had in the IT space, certainly in all of our lifetimes.

Technology continues to come at us at a very, very fast pace. And they are the trusted company to bring, to help people understand that technology and transform their businesses so they can take advantage of that technology.

[Foreign Language].

So they're very magnifying effect involved in CGI deploying its tools, its expertise, especially embedding AI into the public sector so that we can all have a better life.

[Foreign Language].

The other thing I think our clients love is our deep technical expertise. So CGI works doing some of the most complicated tech in the world. And is absolutely valued by the clients who choose us for that specialist work, recognizing the deep skills of our employees.

If you think about it, the scope of what we do in a number of organizations that we serve across the -- spanning across a number of industries that we work for and within some of the largest economies and geographies in the world. We are positioned using all the changes and evolutions of technology to bring the best to our clients and have a positive impact.

[Interpreted] [Foreign Language] Good day, everyone. I would like to start by reflecting on what 2026 represents for CGI. It is much more than a moment in time. It is a defining milestone, half a century of history, commitment and collective achievement. Fifty years ago in 1976, I created CGI in the basement of my house. I was guided by the desire to create a consulting firm where employees would feel at home, have a strong sense of belonging and would be committed to serving their clients. At that time, I could not have imagined what this journey would become, and I am deeply grateful to everyone who has been part of it. Four months later, I was joined by my friend, André Imbeau as a co-founder and as a second employee of CGI. Back then, we were united by a shared belief. We would build a different kind of company. Over time, that belief grew into a dream that we still embrace today, which is to create an environment in which we enjoy working together and as owners, contribute to building a company we can be proud of. This dream has carried us through every technological shift, every geopolitical cycle and every economic transformation. It inspires and drives us across generations and geographies. It remains a solid foundation for everything we do. It -- we wanted to build a strong company culture that is lived every day and that defines how CGI is governed. We wanted to give the opportunity to our employees to be fully involved in the life of their company as owners. We then created an ownership program for them, which would be the anchor of CGI's culture, and it worked. To date, 88% of our consultants and professionals are shareholders of their firm, collectively holding over 8% of CGI shares. This represents $2.1 billion. It makes them the second largest shareholder group of CGI. This is why we call our employees CGI Partners. We wanted them to be entrepreneurs and to have a say in the future of their company as you see their interests are closely aligned with yours as investors. Fundamentally, CGI is a consulting services firm. In this designation, the word services is key. To be successful in the services business, it is essential to love serving clients, show empty and to continuously strive to earn the privilege to serve them from the very beginning in terms of evaluation of the quality of our services. Our goal was simply to earn a pat on the back from our clients. Over time, this objective remains the same, but it is now a specific and measurable indicator. Today, client satisfaction is our highest performance score year after year. We were a private company as we entered a phase of rapid growth and needed to scale we chose to become a publicly traded company. This required an additional level of discipline. At that time, we intentionally designed our stakeholder triangle to guide us in continuously seeking the best equilibrium between the interest of all 3 of our stakeholders, our clients, CGI partners and shareholders. Every year, we conduct extensive consultation with each of them, enabling us to better understand and anticipate their needs. These consultations give them a voice and are known as voice of our clients, voice of our parts -- CGI partners and voice of our shareholders. Let me give you the example of the voice of our clients, through which our client insights help us identifying emerging needs and global trends. In return, we share our findings with them, providing valuable benchmarks and industry foresight for their benefit. This is why we call it our global antenna, highly appreciated by our clients. In addition, we measure stakeholder satisfaction for each of these groups because we believe that what is measured and related results made visible get done. These measures are applied consistently across CGI for each governance body, all the way to the Board of Directors. Over the decades, we have been successful in navigating and leading every major wave of IT evolution from enterprise software to outsourcing, global outsourcing, cybersecurity, data, automation and now to advanced artificial intelligence. Every step of the way, CGI has supported that to the macro environment, technological change and economic cycles. This history has prepared CGI, not only to manage change but to lead it. We do so with discipline, purpose and a clear commitment to create value for our 3 stakeholders for the long term. I am proud of our journey. From the early days to becoming a company of nearly 100,000 CGI partners established in more than 40 countries operating in over 30 languages and serving more than 5,500 clients worldwide. Our company has built a strong reputation and earned numerous recognitions. For example, for several years now, CGI is globally recognized by forums as one of the leading management consulting firms and by Time Magazine as one of the world's best companies. This success is the result of passion, hard work and the expertise of the best team in the world and I led by Julie as Executive Chair of the Board of Directors and Francois as our President and CEO. I remain as committed to ensuring the success of CGI as I was on day 1, and I continue to pursue this ambition through large transformational projects, namely large managed services and acquisitions. Now Francois will share how these foundations translate into CGI's position today.

[Interpreted] Thank you, Serge, and good day, everyone. The foundations you just described translate directly into how CGI performs today and why we believe CGI represents a compelling investment for you, our shareholders. The effectiveness of our model is reflected in our results for fiscal 2025. CGI's revenue increased 8.4% or 4.6% on a constant currency basis. Adjusted EBIT margin was 16.4%. Among the highest in our peer group. Adjusted earnings per share increased 8.9% year-over-year, driven by a higher mix of recurring revenue and ongoing operational excellence initiatives. Bookings reached $17.6 billion, an increase of $1.5 billion year-over-year. And cash from operations totaled $2.2 billion or 14% of revenue. Strong cash generation enable CGI to deploy capital with discipline and consistency. In fiscal 2025, we invested over $3.7 billion of capital. Notably $1.8 billion in accretive acquisitions and $1.4 billion returned to shareholders through share buybacks and dividends. These results demonstrate CGI's value creation strategy in action, which fosters continuous returns for our shareholders. We are focused on building what's next which is our theme for this milestone. With this focus, we are expressing that CGI create value through our strategy, which is built on 4 key streams: systems integration and consulting, including the services related to IP, managed services, also including our IP solutions, accretive acquisitions and finally, share buybacks and dividend programs. These streams are complementary and countercyclical to external market dynamics and have been designed to foster continuous revenue growth and EPS accretion for the benefit of our shareholders. This positions CGI to deliver results even as the global business environment remains complex and uneven. First, our systems integration and consulting stream leverage our deep industry insight and experience to help our clients choose the best path for their AI-enabled digital journey. Our advisory services are informed by the voice of our clients consultation and closely connected to execution, enabling us to bridge strategy and delivery and to support clients through multiyear transformations. Furthermore, we develop, modernize and deliver at enterprise scale and connect complex ecosystems through CGI's intellectual property. These capabilities accelerate value creation for clients while addressing their reliability, security and regulatory requirements of mission-critical operations. Additionally, our managed services streams plays a central role in this model as a primary driver for efficiency and innovation, stability and cost predictability for our clients. Through managed services, which are often large engagements, we embed innovation directly into operations, including cloud, automation, data and advanced AI allowing clients to modernize while maintaining resilience. This approach deepens client relationships strengthens recurring revenue and enhances long-term visibility. Demand for these services is typically stronger in slower economic condition since clients look for cost optimization to improve their financial flexibility with the goal of reinvesting in their digitization. Those who have followed CGI over the years may recall that pattern from previous economic downturns. Another differentiator within our managed services is our portfolio of intellectual property solutions. Our IP platforms modernize core systems in areas such as payments, collections, trade finance and government mission-critical operations. These solutions embed industry knowledge and operational best practices, allowing clients to move faster with lower risk while creating scalable recurring value for CGI. Innovation is at the core of all of these services. This includes how advanced AI is integrated in everything we do, including embedding AI into our services, leading with AI integrated platforms, uniting talent and AI technology and finally, accelerating internal adoption. For our clients, advanced AI should be should not be a cost center, but a value driver that improves their productivity, strengthens productivity strengthens, profitability and enhances their customer value propositions. Our ROI-focused approach to AI integration delivers tangible results, including productivity gains and software development activities. These gains translate into higher margins on existing contracts and more competitive positioning to win new work. Let's now turn to the third stream accretive acquisitions, a core element of our profitable growth strategy. In fiscal 2025, we completed 5 acquisitions, all expected to be accretive within their first year. All have expanded our industry sector depth, breadth of capabilities and local market scale across the U.S., the U.K. and Continental Europe. As we look to the future, we remain disciplined in our M&A approach, with a robust pipeline of opportunities and a clear focus on acquiring the right company at the right time and at the right price. Lastly, share buybacks and dividends provide additional value creation to our shareholders, especially now even that we believe that CGI stock is undervalued. So we plan to remain very active in our share repurchase program, while these conditions persist. Together, this strategy and the full spectrum of our capabilities is what building what's next means today at CGI. An integrated business model that delivers tangible client outcomes while supporting our growth, strong margins and sustainable value creation. And most importantly, our performance is rooted in the care we bring to our clients and our people. Our day-to-day work and long-standing relationships consistently earn us signed client satisfaction score of 9.5 out of 10. Internally, the strength of our culture is reflected in the engagement of our CGI partners with a satisfaction score of 9 out of 10. And we continue to earn your trust as shareholders with a satisfaction score of 9 out of 10. As we look ahead, while the environment is still uncertain, we are observing gradual improvements in some industries and geographies. As such, we anticipate continuing improvement for the rest of the year. I want to thank our 3 stakeholders, our clients, our CGI partners and you, our shareholders, for your trust and commitment. Julie will now speak about how our culture, resilience and vision will enable CGI to continue building what's next, not just for the coming years, but for the next half decade. Julie?

[Interpreted] Thank you, Francois, for this overview of where CGI stands today. I would now like to look ahead and speak about what will enable CGI to continue growing profitably for decades to come. This year, we celebrate our 50th year in a world that is changing faster than ever. Global geopolitical dynamics continue to evolve on a daily basis. Economic conditions remain uncertain and demographic shifts are reshaping economies. However, globally, digital infrastructure has become essential to how economies, governments and societies function. Several countries around the world are now listing information technology as one of the most critical infrastructures just like energy, transportation and supply chains, for example. In addition, technology sovereignty is a key topic in many countries. Technology is no longer simply supporting organizations that is shaping how they operate and make decisions. Several evolutions are expected over the next decade. Beyond supporting decision-making, artificial intelligence will orchestrate operating systems capable of automatically adjusting their actions in real time. Organizations will increasingly operate as connected ecosystems rather than stand-alone entities. Simulation and digital wins, which are virtual replicas of real-world systems will become everybody every day tool for planning and decision-making. They will evolve from projects into true organizational nervous systems continuously testing scenarios to inform real-world decisions. And business models will be designed towards outcomes rather than products or transactions. Across every industry, resilience, trust, empathy and human-centered technology will be the true differentiators. This is where CGI's foundations become even more important. CGI's ability to grow and remain relevant is built on 3 key elements that drive long-term value creation. They are our proximity model, our learning mindset and our culture. First, our operating model is based on close client proximity. We make it a priority to live and work in the same communities as our clients as it is by far the best way to build trusted relationships with them. We live in the same cities. Our children attend the same schools. We are involved in the same community organizations, and we are part of the same local business ecosystem. By being close to our clients, we continuously anticipate and adapt to local needs. This proximity model begins with building a strong presence in metro markets. Today, our geographic presence spans over 40 countries in which we have identified 282 metro markets. In some of these markets, we have reached critical mass. In others, we are expanding our footprint. In those markets where we do not have a presence, this represents future opportunities for us to develop. This geographic densification contributes to our resilience as economic conditions tend to vary across regions. For each of these metro markets, we built our resilience by ensuring a balanced revenue distribution by economic sector and offerings. Globally, we have a well-balanced distribution on each of these elements. Our ambition is to achieve the same level of diversification locally in each metro market. As for the revenue by economic sector knowing that each industry reacts to economic cycles in different ways, we take great care in maintaining a good distribution of our revenue across economic sectors to mitigate risk at the global level. As we continue to grow, our objective is to mirror the GDP spend by economic sector within each metro market. Furthermore, the revenue distribution among the services and our end-to-end offerings in our metro markets is also a key element of our resilience. We believe the right combination between these services is highly strategic as economic conditions drive different business opportunities for each element of our offerings. Together, the dimensions I just explained form the concept of our proximity model. Now let me turn to the second element that supports our long-term value creation, which is our continuous learning mindset. CGI has always been a knowledge-driven organization. Our strength as a partner comes from understanding our clients' industries and staying closely connected to how their needs evolve, both locally and globally. Our experience has enabled us to develop large-scale intelligence assets such as industry blueprints supply chain ecosystem by industry and macro trends informed by more than 1,800 client conversations annually. These assets allow us to anticipate trends, identify emerging challenges and support our clients in areas such as advanced AI, platform modernization, cybersecurity and data-driven transformation. This intelligence is shared across our global teams and equips us with the knowledge needed to remain relevant and forward-looking. The third key element that fosters value creation is our culture. It is the foundation of CGI's success. We are guided by a dream that brings us together driven by a vision to help our clients succeed and committed to a mission of quality and integrity. Our values, partnership, respect, objectivity, innovation and social responsibility shape how we work, collaborate and deliver value. This culture unites all of us at CGI partners, empowering us to innovate, serve our clients with excellence and make a positive impact in our communities. It is a shared culture that is lived every day in every market. Another cornerstone of our culture is our discipline and our managing for excellence approach. Wherever we operate in the world, everything is managed using the same principles, governance and metrics across all levels of the company. For every qualitative ambition, we have established a corresponding quantitative measure. In addition, our operations rely on world-class management practices that are embedded in our management foundation, which has been defined and continuously refined over the years. These practices guide us in honoring all our commitments to our stakeholders and serve as a compass to ensure sustainability of our company. The principle documented in the management foundation ensure that empowerment, accountability, recognition and sound judgment are not left to chance, but are embedded in how we manage the company. We are committed to empowering our CGI partners by nurturing a learning organization and providing them with an environment where they have training and professional growth opportunities. We also remain dedicated to our responsibilities towards society, including ethics, resilience, digital inclusion and sustainability. CGI's role in world remains clear. We help governments modernize public services to citizens. We support competitiveness across industries. We develop talent and future digital leaders. We build systems that make society safer, economy stronger and organizations more effective. And we deliver superior returns to you, our shareholders. As we mark 50 years, I would like to sincerely thank you and thank you to our clients for your trust. To our CGI partners, we are grateful for your commitment, expertise and entrepreneurial mindset. Thank you. To our shareholders, we value your continued support of our long-term strategy and to the Board of Directors, thank you for your exceptional contributions. Finally, I want to thank the communities in which we are established for welcoming us supporting our growth and allowing us to contribute meaningfully to the economic and social fabric of the regions we serve. On this year of celebration, we are proud of our history, and we reaffirm the functions that have brought us here. Our dream continues to inspire us today and into the future. On a more personal note, I am proud to be part of our company. It's an honor to shape CGI's future alongside Serge, Francois, our leadership team and the best team in the world. Together, let's build the next 50 years. Let's move on now to the Q&A session. We remind you that shareholders and duly appointed proxy holders may submit questions by using the question box at the bottom left of your screen. Please note that questions can be asked in English or French. I will read them in the language in which they are submitted and may answer them directly or direct them to my colleagues. [Operator Instructions] So we have a question which I'll submit to Serge. In the current environment and results, why does stock price hasn't shown improvement?

Thank you, [indiscernible]. It is a question which would deserve a couple of hours discussion. However, when you look and so there was an article this morning, the stock went down from $171 to $120-ish. And so nothing in what is related to CGI because we -- the fundamentals we apply in managing CGI, it is exactly to grow across all those uncertainties. What Francois just explained with our 4-stream strategies, so let's say, last year, it started with that hype related to AI. So -- and then there was some uncertainties relating to the future of consulting companies, especially in the services committee in IT, such as us. So -- and then -- so it has been more and more. And so that hype is disappearing because what we are doing is highly fundamental, not only for us, but for all IT people across the world are working for organization and working with us. So when you have the introduction of a new technology, new innovation, it is the exact opposite and it is helping us to be more performant, to bring more productivity to our clients. When I look at that, I've been with CGI obviously, for 50 years. And then every time there was a new innovation, it always served us very, very, very rapidly. And then we were the first to initiate that with our client, joining with our clients because the team, the IT team of the client, they were doing the same thing. Naturally, those people, they are IT specialists every time there is something new. So very rapidly, they are going to absorb knowledge related to that technology. You have seen the explanation coming from Francois. So we are -- it's a huge advantage for us. Second aspect, it's not -- when you look at the -- in terms of when you dissect the 4 streams, so Francois just talked about, in tougher economies, okay, such as when you look, for instance, we have 60-ish percent of our revenue, which is coming from Europe. I'll give you an example. In Germany, the GDP growth last year was 0. When you look at France, in France, it was 1.5 or 1.4. So in such, let's say, flat economies, let's say, obviously, the -- and then I'm talking about the first stream you described, the system integration. In such period, so companies are going to be tempted to reduce what they are -- how much they are investing in new systems and so on. And so -- and on the other side, in so -- in tougher economy. When you look at managed services, it is the exact opposite. Such as Francois explained, every time you have tougher market condition, the client, they are going to try. And so obviously, their solution is to digitize their operations to continue to innovate. And then -- but they need to reduce their costs to free up some money to digitize themselves. So this is why and also with those 2, it's counter cyclical really so. And then as a proof of that, look at the CGI history over years. We've developed the company much more rapidly in a period of uncertainties of when it was tougher in terms of economic conditions. Look at all of that. So why? That's because, obviously, today, we have 60% of our business, which is coming from recurring revenue. It is the managed services are included in their IP. And it is probably close to 40%, 45%, which is coming from system integration. And then when you look, you know what Francois demonstrated. So the pipeline is much bigger in managed services. By the way, we did a survey. We have identified 1,000 targets in the 40 countries in which we have operations, which are a target for us in terms of partnership with them. So -- and in such time, by the way, when you have tougher economies. So we like -- Julie, we did 130 acquisitions over the years.

Yes.

We always develop acquired more operations through acquisition in such time. Why? And that maybe I could give you so a very, very good transaction for us was AMS. But when we acquired AMS for instance, we paid 57% of the revenue. So that was a bargain. So -- and then a bit later, so we acquired Logica, 57% of the revenue again. So it means that also -- and in good time, in strong economy. It was not able -- we were not able to design transaction. Why? That's because the multiples and also in order to buy companies, it was 2, 3x. And obviously, when we -- when I said we are managing as per fundamentals, we usually is not responsible -- has been responsible for that. So in calculating what would be the payback period in such time when it is too strong. So it means the time we need, the payback period could be 20, 25 years. This is why in such period, we are very, very -- so we are calm. So we are doing very, very -- we are -- we're taking care of that because we have a role of the -- beauty role we have is for you as shareholders and to make sure that we are going to create value and so on. See? Look at the history of -- and then I'm talking to investors of CGI and what -- so and then put on 2 pages where we have signed managed services contract. And for each, you know what the period. And then you're going to see -- including acquisition, we were much -- we were growing much more rapidly in such economy. In strong economy, so then this is the system integration. Clients, they want to invest more and so on. And it has nothing to do with AI. There's nothing. Those uncertainties, it's because of the economic condition. But again, I repeat, it's favorable for us. Does that answer your question?

[Interpreted] Yes, I think it does. Thank you very much, Serge. We don't have any other questions. So this concludes the Q&A session. We hope you can join us next year. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]