(All amounts in release are in Canadian dollars)

OTTAWA, November 24, 2022 – Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, today released its fourth quarter and annual results for the year ended September 30, 2022.

Highlights of record performance in Q4:

• Revenue up 26% to $161 million a record high
• Adjusted EBITDA¹ up 54% to $19 million
• New contract signings of $161 million

Highlights of 5^th consecutive record year:

• Revenue up 12% to $582 million
• Gross margin of 29%, a new annual record for the company
• Adjusted EBITDA¹ up 27% to $66 million, surpassing revenue growth
• Operating free cash flow¹ up 39% to $47 million

Access the full report on the Calian Financial Results web page.

Register for the conference call on Friday, November 25, 2022, 8:30 a.m. Eastern Time

“The fourth quarter capped off another record-breaking year for Calian,” said Kevin Ford, Calian CEO. “We continued our growth through acquisitions and margin expansion posting a 5^th consecutive year of double-digit profitable growth. Fourth quarter revenues increased 26% driven by our expansion in the United States and Europe, gross margin set a new record at 31% and adjusted EBITDA grew 54% significantly outpacing top line growth. This strong performance was due to the dedication of our staff, the power of diversification and the successful execution of our strategic plan.”

Fourth Quarter Results

Revenues increased 26%, from $128 million to $161 million, primarily driven by strong performance in our Information Technology & Cyber Solutions (ITCS) and Learning segments.

• ITCS: Revenues tripled to $69 million driven by the company’s strong performance from its expansion into the United States with the acquisition of Computex in March. Supply chain shortages experienced in the last few quarters began to ease allowing the company to deliver a backlog of orders to customers in the quarter.
• Learning: Revenues grew 24% to $22 million driven by the strong performance of the company’s recent acquisition of SimFront and continued push into Europe.
• Advanced Technologies: Revenues declined 31% to $31 million due to the timing of new ground systems projects, combined with ongoing supply chain delays. Despite this, the segment signed new contracts for $60 million and significantly increased its adjusted EBITDA margin, from 13% to 15%, due to a revenue mix with strong contribution from its products and software offerings and cost containment.
• Health: Revenues decreased 11% to $39 million due to lower COVID-19 related business and a gap in the award of new patient support engagements. Despite this, the segment maintained its adjusted EBITDA margin at 16% and signed new contracts for $35 million.

Liquidity and Capital Resources

“Our continued focus on profitable growth, margin expansion, and efficiency as we scale was evident again this year,” said Patrick Houston, Chief Financial Officer. “We generated operating free cash flow of $14 million in Q4 and $47 million for the fiscal year, a 39% increase over the prior year and representing a 72% conversion rate from adjusted EBITDA. This performance along with our solid balance sheet, ample liquidity and proven track record of M&A puts us in a strong position to continue to deploy capital and drive long term value in the coming years.”

Quarterly Dividend

Today, Calian declared a quarterly dividend of $0.28 per share. The dividend is payable December 22, 2022, to shareholders of record as of December 8, 2022. Dividends paid by the Corporation are considered “eligible dividend” for tax purposes.

ESG Report

Today, Calian published its inaugural ESG report. Being socially responsible is part of the fabric of Calian. This report describes the company’s ESG journey and shares the framework for its key priorities. It can be found on the website at www.calian.com.

Guidance

“With new contract signings of $699 million during the year, a robust backlog of $1.3 billion combined with increased recurring revenue streams, we are well positioned to deliver another record year in FY23,” said Mr. Ford.

CAD ‘000s

• Revenue: Low $630,000 High $680,000
• Adjusted EBITDA: Low $70,000, High $75,000
• Adjusted net profit: Low $46,000, High $50,000

About Calian

We keep the world moving forward. Calian® helps others communicate, innovate, learn, stay safe and lead healthy lives with confidence. Every day, our employees live our values of customer-commitment, integrity, innovation and teamwork to engineer reliable solutions that solve complex problems. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American and International markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

Product or service names mentioned herein may be the trademarks of their respective owners.

Media inquiries:[email protected] x 2298Investor Relations inquiries:[email protected]

DISCLAIMER

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8

Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: [email protected]