(All amounts in this release are in Canadian Dollars)

OTTAWA, Ontario, Nov. 25, 2019 — Calian Group Ltd. (TSX.CGY) today released its annual results for the year ended September 30, 2019.

Fourth quarter and fiscal year 2019 highlights:

• Revenue at an annual record of $343 million, an increase of 12% from the prior year
• Revenue at a quarterly record of $90.9 million for Q4, up 16% from the same period in the prior year
• EBITDA(1) at a record $27.1 million for 2019; and a record $8.1 million for the fourth quarter
• 72nd consecutive profitable quarter
• Introduction of new operating segments to better reflect Calian’s core businesses
• Dividend of $0.28 per share for the fourth quarter

The Company reported revenues for the quarter of $90.9 million, representing a 16% increase from the $78.5 million reported in the same quarter of the previous year. For the year ended September 30, 2019, the Company reported revenues of $343.0 million, a 12% gain compared to $305.1 million in the prior year.

EBITDA(1) for the fourth quarter was $8.1 million or $1.03 per share basic and $1.02 per share diluted, an increase from $6.7 million or $0.86 per share basic and diluted in the same quarter of the previous year. For the year ended September 30, 2019, EBITDA(1) was $27.1 million or $3.46 per share basic and $3.45 per share diluted, a 7.9% increase compared to $25.3 million or $3.28 per share basic and $3.26 per share diluted in the same period of the previous year.

Adjusted net profit,(1) which excludes non-cash items related to our recent acquisitions and adjustments to our earnout payments, was $2.43 per share basic and $2.41 diluted; this compares to $2.27 per share basic and $2.25 diluted in the previous year. Net profit for the fourth quarter was $8.5 million or $1.08 per share basic and diluted, an increase from $4.3 million or $0.56 per share basic and $0.55 per share diluted in the same quarter of the prior year. On a year-to-date basis, net profit was $20.0 million or $2.55 per share basic and $2.54 per share diluted, an increase of 23% compared to $16.3 million or $2.11 per share basic and $2.10 diluted in the same period of the previous year.

Calian is announcing a change in its operating segments which is reflected in our results released today. The two-divisional structure comprised of the former BTS Division and the Systems Engineering Division has been replaced by the following four operating segments to better reflect Calian’s core businesses and align with our broader business strategy: Advanced Technologies, Health, Learning and Information Technology. Advanced Technologies is comprised of the Systems Engineering Division, the Engineering and Technical Services team of BTS, and the recent acquisitions IntraGrain Technologies and SatService. The remainder of BTS has been split into the Health, Learning and Information Technology segments.

Further information, discussion, and a view of current and prior year performance for these four segments is available in Calian’s annual 2019 Financial Statements and Management’s Discussion and Analysis (MD&A).

“As I look back at a year of record revenues and EBITDA, I was particularly pleased to see all four of our segments grow in terms of both revenues and earnings contribution,” stated Patrick Houston, CFO. “We believe that this diversified profitable growth is one of our Company’s unique strengths.”

“The 2019 fiscal year has been exciting for Calian on many fronts. We reported record quarterly revenue for all four quarters in 2019, leading to the Company’s highest reported annual revenue and earnings. This year we also executed two acquisitions, launched innovative products, strengthened our global presence, and gained new customers across all lines of business,” stated Kevin Ford, President and CEO.

“I am excited that our reporting is now aligned to four segments: Advanced Technologies, Health, Learning and Information Technology. This new reporting segmentation demonstrates our focus going forward, and I believe it is an important development for shareholders as we move away from the previous two-divisional construct, which we had outgrown. This will help simplify the Company for our customers and shareholders, while providing insight into our diverse lines of business,” said Ford.

“We continue to see positive momentum for Calian’s growth path as we execute our organic and acquisitive growth strategy. Calian has now closed nine acquisitions in the past eight years, including two in the 2019 fiscal year for the Advanced Technologies segment. Regina, Saskatchewan-based IntraGrain Technologies has enabled our push into the AgTech market with complementary capabilities for this segment. The acquisition of SatService, based in Germany, has provided Calian with a foothold in Europe and supports the Company’s expansion in the European market with turnkey satellite solutions as well as products,” Ford added.

“Overall, our 2019 results indicate that our growth framework – based on the four pillars of customer retention, customer diversification, service line evolution and continuous improvement – is working. We posted another record year while demonstrating that Calian as an investment opportunity represents both growth and stability,” Ford stated.

“Today we reported our 72nd consecutive profitable quarter, and I am proud of the total shareholder return of 21% for the current year. With strong cash flows, acquisitive and organic revenue growth, investments in innovation, and a dedicated employee base, we are well-positioned to continue the execution of our growth plan,” said Ford.

Traditional markets in which Calian operates are stable and management expects organic revenue and earnings growth in most, or all of its segments through the successful execution of our growth strategy. However, we must caution that revenues realized are ultimately dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. Please refer to the section regarding forward-looking statements which forms an integral part of this release.

Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2020 to be in the range of $365 million to $395 million, EBITDA per share in the range of $4.00 to $4.30, and adjusted net profit per share in the range of $2.35 to $2.65.

For Calian’s Financial Statements, MD&A and other disclosures, please visit our IR webpage at https://www.calian.com/en/investor-relations; for more information contact us at [email protected].

(1) Caution regarding non-GAAP measures:

This press release is based on reported earnings in accordance with IFRS. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, adjusted net profit and adjusted net profit per share. These non-GAAP measures do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.