Stock Market SymbolsGIB.A (TSX)GIB (NYSE)www.cgi.com/newsroom New modernization initiative will evolve the agency's Health Plan Management System  FAIRFAX, Va., March 19, 2024 /PRNewswire/ - CGI Federal Inc. (CGI), a wholly-owned U.S. operating subsidiary of CGI Inc. (TSX: GIB.A) (NYSE: GIB), has been awarded a single award, firm-fixed price contract by the Centers for Medicare & Medicaid Services (CMS) to help improve access to Medicare for millions of beneficiaries by modernizing the agency's Health Plan ...

Investors interested in Computer - Services stocks are likely familiar with Perficient (PRFT) and CGI Group (GIB) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific ...

FAIRFAX, Va., March 1, 2024 /PRNewswire/ -- CGI's (NYSE: GIB) (TSX: GIB.A) U.S. operations has demonstrated its commitment to fostering an inclusive workplace by achieving a perfect score for the third year in a row in the Human Rights Campaign Foundation's (HRC) 2023 Corporate Equality Index. The HRC Foundation's Corporate Equality Index is the nation's foremost benchmarking tool measuring corporate policies, practices and benefits related to lesbian, gay, bisexual, transgender and queer (LGBTQ+) workplace ...

Stock Market SymbolsGIB.A (TSX)GIB (NYSE)www.cgi.com/newsroom BOSTON, Feb. 27, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) today announced it has been awarded a contract by the Commonwealth of Massachusetts to deliver a financial management solution through CGI Advantage®, a cloud-based platform that integrates financial data in a modern, unified platform. CGI will deploy a built-for-government solution to meet the Commonwealth's transformation goals, including increased data transparency and complianc ...

This Management's Discussion and Analysis of the Financial Position and Results of Operations (MD&A) is a responsibility of management and has been reviewed and approved by the Board of Directors. This MD&A has been prepared in accordance with the rules and regulations of the Canadian Securities Administrators. The Board of Directors is ultimately responsible for reviewing and approving the MD&A. The Board of Directors carries out this responsibility mainly through its Audit and Risk Management Committee, w ...

Financial results and highlights For the three and twelve months ended September 30, 2023 and 2022 All amounts are in Canadian dollars unless otherwise indicated. Note: All figures in Canadian dollars Fourth Quarter & Fiscal 2023 Our presentations contain "forward-looking information "within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All suc ...

[Introduction and Basis of Presentation](index=2&type=section&id=Introduction%20and%20Basis%20of%20Presentation) This section outlines the report's preparation basis, forward-looking statement caveats, key performance measures, and reporting segments [Basis of Presentation](index=2&type=section&id=Basis%20of%20Presentation) This MD&A, prepared under Canadian securities rules, should be read with IFRS-compliant audited financial statements for fiscal years 2023 and 2022 - The MD&A is prepared under Canadian securities rules and should be read in conjunction with the IFRS-compliant audited financial statements for fiscal years 2023 and 2022[2](index=2&type=chunk)[3](index=3&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to inherent risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based on current assumptions but are subject to significant risks and uncertainties, such as economic conditions, competition, and cybersecurity breaches, that could cause actual results to differ[5](index=5&type=chunk) - Readers are cautioned not to place undue reliance on these statements and are directed to Section 10 - Risk Environment for a more detailed discussion of potential risks[6](index=6&type=chunk) [Key Performance Measures](index=4&type=section&id=Key%20Performance%20Measures) CGI uses IFRS and non-GAAP measures like constant currency revenue growth, adjusted EBIT, and net debt to assess core operating performance and financial strength - The company uses non-GAAP measures like constant currency revenue growth and adjusted EBIT to facilitate period-to-period comparisons by excluding impacts of currency fluctuations and non-operational items[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) - Key growth indicators include Bookings (new contracts), Backlog (contracted future revenue), and Book-to-bill ratio, which management targets to keep above **100%** on a trailing twelve-month basis[9](index=9&type=chunk) - Liquidity and capital structure are monitored through metrics such as Days Sales Outstanding (DSO), Net Debt, Net Debt to Capitalization Ratio, and Return on Invested Capital (ROIC)[12](index=12&type=chunk) [Reporting Segments](index=7&type=section&id=Reporting%20Segments) CGI manages and reports results across nine geographic operating segments, including distinct U.S. government and commercial units, and an Asia Pacific global delivery center - CGI is organized into nine geographic operating segments, including distinct units for U.S. Commercial/State and U.S. Federal government clients, as well as an Asia Pacific segment for global delivery centers[14](index=14&type=chunk) [Corporate Overview](index=9&type=section&id=1.%20Corporate%20Overview) This section provides an overview of CGI's business, its strategic vision, and its competitive positioning in the global IT and business consulting market [About CGI](index=9&type=section&id=1.1.%20ABOUT%20CGI) CGI is a global IT and business consulting firm with 91,500 professionals, offering end-to-end services and IP solutions across key industries - CGI is a leading IT and business consulting firm with **91,500 professionals** worldwide, offering end-to-end services to help clients with their digital transformation[19](index=19&type=chunk) - The service portfolio includes: - Business and strategic IT consulting & systems integration - Managed IT and business process services - Intellectual property (IP) solutions[22](index=22&type=chunk) - Key target industries include financial services, government, manufacturing, retail, communications, utilities, and health[22](index=22&type=chunk) [Vision and Strategy](index=10&type=section&id=1.2.%20VISION%20AND%20STRATEGY) CGI's vision is to be a global IT and business consulting leader, pursued through a disciplined 'Build and Buy' profitable growth strategy with four key pillars - CGI's strategy is a 'Build and Buy' model focused on both profitable organic growth (Build) and accretive acquisitions (Buy)[29](index=29&type=chunk) - The four pillars of the strategy are: 1. Win, renew, and extend contracts 2. Secure new large managed IT and business process services contracts 3. Pursue metro market acquisitions 4. Execute large, transformational acquisitions[29](index=29&type=chunk)[32](index=32&type=chunk) - The business model emphasizes local relationships and accountability, complemented by a global delivery network for scale and 24/7 access to capabilities[34](index=34&type=chunk)[35](index=35&type=chunk) [Competitive Environment](index=12&type=section&id=1.3.%20COMPETITIVE%20ENVIRONMENT) CGI competes with diverse firms, differentiating through industry expertise, local presence, global delivery, and digital IP solutions to meet comprehensive client needs - The competitive landscape includes local specialists, government contractors, and global IT service providers[42](index=42&type=chunk) - Key competitive factors include: - Industry and technology expertise - Local client relationships - Flexible global delivery network - Digital IP solutions - Value and cost of services - Consistent on-time, within-budget delivery[43](index=43&type=chunk) [Highlights and Key Performance Measures](index=13&type=section&id=2.%20Highlights%20and%20Key%20Performance%20Measures) This section presents key financial highlights for fiscal year 2023, including revenue, earnings, bookings, and capital structure metrics, along with stock performance and a subsequent acquisition [Selected Yearly Information & Key Performance Measures](index=13&type=section&id=2.1.%20SELECTED%20YEARLY%20INFORMATION%20%26%20KEY%20PERFORMANCE%20MEASURES) For FY2023, CGI reported **$14.3 billion** revenue, **$1.63 billion** net earnings, **$16.3 billion** bookings, and a **113.7%** book-to-bill ratio, improving net debt and ROIC Fiscal Year 2023 vs. 2022 Performance | Metric | 2023 (CAD millions) | 2022 (CAD millions) | Change (CAD millions) | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | $14,296.4M | $12,867.2M | +$1,429.2M | +11.1% | | Constant Currency Revenue Growth | 8.0% | 10.5% | - | - | | Bookings | $16,259M | $13,966M | +$2,293M | +16.4% | | Book-to-bill ratio | 113.7% | 108.5% | +5.2% | - | | Adjusted EBIT | $2,312.7M | $2,086.6M | +$226.1M | +10.8% | | Net earnings | $1,631.2M | $1,466.1M | +$165.1M | +11.3% | | Diluted EPS | $6.86 | $6.04 | +$0.82 | +13.6% | | Cash provided by operating activities | $2,112.2M | $1,865.0M | +$247.2M | +13.3% | | Net debt | $2,134.6M | $2,946.9M | -$812.3M | -27.6% | - The company's backlog as of September 30, 2023, stood at **$26.1 billion**, with approximately **$10.0 billion** expected to be converted into revenue within the next twelve months[44](index=44&type=chunk) [Stock Performance](index=14&type=section&id=2.2.%20STOCK%20PERFORMANCE) CGI repurchased **6.2 million** Class A Shares for **$786.9 million** in fiscal 2023, with approximately **205.9 million** Class A and **26.4 million** Class B shares outstanding - Under its Normal Course Issuer Bid (NCIB), the company purchased **6,202,546 Class A Shares** for cancellation at a total cost of **$786.9 million** during fiscal 2023[50](index=50&type=chunk) - As of September 30, 2023, the company has authorization to purchase up to an additional **12,566,848 Class A Shares** for cancellation under the current NCIB[51](index=51&type=chunk) [Subsequent Event](index=15&type=section&id=2.3.%20SUBSEQUENT%20EVENT) Post-fiscal year-end, CGI acquired Momentum Consulting Corp. for **$50.5 million** on October 10, 2023, adding **175** professionals - On October 10, 2023, CGI acquired Momentum Consulting Corp. for **$50.5 million**, adding **175 professionals** specializing in digital transformation and data analytics[53](index=53&type=chunk) [Financial Review (Fiscal Year 2023)](index=16&type=section&id=3.%20Financial%20Review) This section details CGI's fiscal year 2023 financial performance, including bookings, revenue, operating expenses, adjusted EBIT, net earnings, and earnings per share [Bookings and Book-to-Bill Ratio](index=16&type=section&id=3.1.%20BOOKINGS%20AND%20BOOK-TO-BILL%20RATIO) CGI achieved **$16.3 billion** in bookings for FY2023, with a strong **113.7%** book-to-bill ratio, indicating robust future revenue potential across all segments FY2023 Bookings and Book-to-Bill Ratio by Segment | Segment | Bookings (CAD thousands) | Book-to-bill ratio % | | :--- | :--- | :--- | | **Total CGI** | **16,259,144** | **113.7%** | | U.S. Federal | 2,878,094 | 148.1% | | Western and Southern Europe | 2,829,306 | 110.3% | | U.S. Commercial and State Government | 2,734,687 | 110.9% | | Canada | 2,518,745 | 112.7% | | Scandinavia and Central Europe | 1,831,999 | 105.3% | | U.K. and Australia | 1,763,767 | 105.2% | | Finland, Poland and Baltics | 883,321 | 101.7% | | Northwest and Central-East Europe | 819,224 | 102.4% | [Revenue by Segment](index=19&type=section&id=3.4.%20REVENUE%20BY%20SEGMENT) FY2023 total revenue increased **11.1%** to **$14.3 billion** (8.0% constant currency), driven by organic growth and acquisitions, with strong performance in Western and Southern Europe and Asia Pacific - FY2023 revenue grew to **$14.3 billion**, an **11.1%** increase YoY. Constant currency growth was **8.0%**, driven by organic growth and acquisitions[63](index=63&type=chunk) FY2023 Revenue Growth by Segment (Constant Currency) | Segment | Revenue (CAD thousands) | Constant Currency Growth % | | :--- | :--- | :--- | | Western and Southern Europe | 2,605,926 | 16.7% | | Asia Pacific | 918,056 | 16.4% | | U.K. and Australia | 1,455,529 | 11.3% | | Finland, Poland and Baltics | 828,951 | 9.4% | | Scandinavia and Central Europe | 1,648,356 | 5.2% | | U.S. Federal | 1,935,238 | 4.6% | | Northwest and Central-East Europe | 755,901 | 4.4% | | Canada | 2,064,659 | 4.1% | | U.S. Commercial and State Government | 2,277,996 | 4.0% | - The U.S. federal government and its agencies represented **13.5%** of total revenue for Fiscal 2023, up slightly from **13.3%** in Fiscal 2022[58](index=58&type=chunk) [Operating Expenses](index=22&type=section&id=3.5.%20OPERATING%20EXPENSES) FY2023 operating expenses increased to **$12.0 billion** but remained stable at **83.8%** of revenue, with cost of services slightly up and selling/administrative costs down as a percentage of revenue - Costs of services, selling and administrative expenses were **$11,982.4 million**, remaining stable at **83.8%** of revenue compared to the prior year[81](index=81&type=chunk)[84](index=84&type=chunk) - Cost of services as a percentage of revenue increased due to fewer billable days and higher travel expenses, while selling and administrative costs decreased due to lower performance-based compensation accruals[85](index=85&type=chunk)[86](index=86&type=chunk) [Adjusted EBIT by Segment](index=23&type=section&id=3.6.%20ADJUSTED%20EBIT%20BY%20SEGMENT) FY2023 Adjusted EBIT rose **10.8%** to **$2.31 billion**, with the margin stable at **16.2%**, driven by profitable growth offsetting increased costs and project adjustments - Adjusted EBIT increased by **$226.1 million** to **$2,312.7 million**, while the adjusted EBIT margin remained stable at **16.2%**[89](index=89&type=chunk) FY2023 Adjusted EBIT Margin by Segment | Segment | Adjusted EBIT (CAD thousands) | Adjusted EBIT Margin % | | :--- | :--- | :--- | | Asia Pacific | 277,598 | 30.2% | | Canada | 477,502 | 23.1% | | U.S. Federal | 306,362 | 15.8% | | U.S. Commercial and State Government | 339,410 | 14.9% | | U.K. and Australia | 216,517 | 14.9% | | Western and Southern Europe | 355,578 | 13.6% | | Northwest and Central East-Europe | 101,871 | 13.5% | | Finland, Poland and Baltics | 110,583 | 13.3% | | Scandinavia and Central Europe | 127,320 | 7.7% | [Net Earnings and Earnings Per Share](index=26&type=section&id=3.8.%20NET%20EARNINGS%20AND%20EARNINGS%20PER%20SHARE) FY2023 net earnings increased **11.3%** to **$1.63 billion**, with diluted EPS up **13.6%** to **$6.86**, benefiting from higher earnings and share repurchases FY2023 Net Earnings and EPS Performance | Metric | 2023 (CAD millions) | 2022 (CAD millions) | Change % | | :--- | :--- | :--- | :--- | | Net earnings | $1,631.2M | $1,466.1M | +11.3% | | Diluted EPS | $6.86 | $6.04 | +13.6% | | Net earnings excluding specific items | $1,680.0M | $1,487.9M | +12.9% | | Diluted EPS excluding specific items | $7.07 | $6.13 | +15.3% | - The effective tax rate for FY2023 was **25.8%**, a slight increase from **25.5%** in FY2022. Excluding specific items, the rate was **25.7%**[106](index=106&type=chunk)[112](index=112&type=chunk) - The weighted average number of diluted shares outstanding decreased by **2.1%** due to the company's share repurchase program[109](index=109&type=chunk) [Liquidity](index=28&type=section&id=4.%20Liquidity) This section reviews CGI's cash flow activities, capital resources, and key liquidity metrics for fiscal year 2023, highlighting improvements in financial position [Consolidated Statements of Cash Flows](index=28&type=section&id=4.1.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) FY2023 operating cash flow increased to **$2.11 billion**, while investing activities decreased due to lower acquisitions, and financing activities focused on share repurchases FY2023 Summary of Cash Flows (in millions CAD) | Cash Flow Activity | 2023 (CAD millions) | 2022 (CAD millions) | Change (CAD millions) | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | 2,112.2 | 1,865.0 | 247.2 | | Cash used in investing activities | (561.9) | (911.9) | 350.1 | | Cash used in financing activities | (1,192.4) | (1,591.1) | 398.7 | - The increase in operating cash flow was mainly due to improved collections and higher net earnings[117](index=117&type=chunk) - Financing activities were dominated by the purchase and cancellation of Class A shares for **$788.0 million**[120](index=120&type=chunk) [Capital Resources](index=30&type=section&id=4.2.%20CAPITAL%20RESOURCES) As of September 30, 2023, CGI had **$3.1 billion** in available capital, including **$1.6 billion** in cash and investments, deemed sufficient for operations and growth strategy Available Capital Resources as of Sep 30, 2023 (in thousands CAD) | Resource | Amount Available (CAD thousands) | | :--- | :--- | | Cash and cash equivalents | 1,568,291 | | Short-term investments | 7,332 | | Long-term investments | 17,113 | | Unsecured committed revolving credit facility | 1,495,858 | | **Total** | **3,088,594** | - The company was in compliance with all financial covenants related to its long-term debt agreements[125](index=125&type=chunk) [Selected Measures of Capital Resources and Liquidity](index=32&type=section&id=4.5.%20SELECTED%20MEASURES%20OF%20CAPITAL%20RESOURCES%20AND%20LIQUIDITY) CGI improved its capital structure in FY2023, with net debt to capitalization decreasing to **20.4%**, ROIC improving to **16.0%**, and DSO reducing to **44 days** Key Capital and Liquidity Ratios | Metric | As at Sep 30, 2023 | As at Sep 30, 2022 | | :--- | :--- | :--- | | Net debt | $2,134.6M | $2,946.9M | | Net debt to capitalization ratio | 20.4% | 28.8% | | Return on invested capital (ROIC) | 16.0% | 15.7% | | Days sales outstanding (DSO) | 44 days | 49 days | - The decrease in the net debt to capitalization ratio was primarily due to strong cash generation, partially offset by share repurchases[134](index=134&type=chunk) [Fourth Quarter Results (Q4 2023)](index=34&type=section&id=5.%20Fourth%20Quarter%20Results) This section presents CGI's financial performance for Q4 2023, covering revenue, adjusted EBIT, net earnings, and cash flows, highlighting key drivers and segment contributions [Revenue by Segment (Q4)](index=37&type=section&id=5.4.%20REVENUE%20BY%20SEGMENT%20(Q4)) Q4 2023 revenue increased **8.0%** to **$3.51 billion** (2.2% constant currency), driven by organic expansion, with strong growth in Asia Pacific and Northwest and Central-East Europe - Q4 2023 revenue increased **8.0%** to **$3.5 billion**; constant currency growth was **2.2%**[155](index=155&type=chunk) - Growth was partially offset by the calendar impact of one less available billable day compared to Q4 2022[155](index=155&type=chunk) - The U.S. federal government represented **14.0%** of revenue in Q4 2023[150](index=150&type=chunk) [Adjusted EBIT by Segment (Q4)](index=40&type=section&id=5.5.%20ADJUSTED%20EBIT%20BY%20SEGMENT%20(Q4)) Q4 2023 Adjusted EBIT rose **9.8%** to **$573.0 million**, with the margin expanding to **16.3%**, driven by profitable organic growth despite project cost adjustments - Q4 Adjusted EBIT was **$573.0 million**, an increase of **9.8%** YoY. The adjusted EBIT margin improved to **16.3%** from **16.1%**[173](index=173&type=chunk) - The margin increase was mainly due to profitable organic growth, partly offset by one less billable day and project cost reevaluations[173](index=173&type=chunk) [Net Earnings and Earnings Per Share (Q4)](index=42&type=section&id=5.6.%20NET%20EARNINGS%20AND%20EARNINGS%20PER%20SHARE%20(Q4)) Q4 2023 net earnings increased **14.4%** to **$414.5 million**, with diluted EPS up **16.6%** to **$1.76**, benefiting from higher earnings and a stable tax rate Q4 2023 Net Earnings and EPS Performance | Metric | Q4 2023 (CAD millions) | Q4 2022 (CAD millions) | Change % | | :--- | :--- | :--- | :--- | | Net earnings | $414.5M | $362.4M | +14.4% | | Diluted EPS | $1.76 | $1.51 | +16.6% | | Net earnings excluding specific items | $421.2M | $373.1M | +12.9% | | Diluted EPS excluding specific items | $1.79 | $1.56 | +14.7% | [Consolidated Statements of Cash Flows (Q4)](index=44&type=section&id=5.7.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(Q4)) Q4 2023 operating cash flow was strong at **$628.7 million** (17.9% of revenue), driven by improved collections, while financing activities increased due to share repurchases - Cash from operating activities was **$628.7 million** (**17.9%** of revenue), up from **$488.9 million** in Q4 2022, mainly due to better collections[189](index=189&type=chunk)[190](index=190&type=chunk) - Cash used in financing activities increased to **$603.6 million**, largely due to repurchasing **2.4 million Class A shares** for **$324.7 million**[193](index=193&type=chunk) [Eight Quarter Summary](index=46&type=section&id=6.%20Eight%20Quarter%20Summary) This section summarizes key performance trends over the past eight quarters, noting the impact of seasonality, billable days, client cycles, and foreign exchange on results [Eight Quarter Summary](index=46&type=section&id=Eight%20Quarter%20Summary) Quarterly performance is influenced by seasonality, billable days, client business cycles, and foreign exchange, while cash flow varies due to payment and tax credit timing - Quarterly performance can be impacted by seasonality, the number of billable days, client business cycles, and foreign exchange fluctuations[198](index=198&type=chunk)[201](index=201&type=chunk) - Cash flow from operations can vary significantly quarter-to-quarter due to the timing of client payments, acquisition costs, and tax credit reimbursements[200](index=200&type=chunk) [Changes in Accounting Policies](index=48&type=section&id=7.%20Changes%20in%20Accounting%20Policies) This section details the adoption of new accounting standard amendments, noting no significant impact on financial statements, and anticipates no future impact from upcoming changes [Changes in Accounting Policies](index=48&type=section&id=Changes%20in%20Accounting%20Policies) Adopted amendments to IAS 37, IAS 12, and IAS 1 had no significant financial statement impact, and future changes to IAS 8 and IAS 12 are also not expected to impact - Adopted amendments to IAS 37 (Onerous Contracts) and IAS 1 (Disclosure of Accounting Policy Information), which had no significant impact on the financial statements[203](index=203&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - Adopted amendments to IAS 12 (Income Taxes) related to Pillar Two model rules, which introduced a temporary recognition exception for deferred taxes and had no impact as of September 30, 2023[204](index=204&type=chunk)[205](index=205&type=chunk) - Future amendments to IAS 8 (Accounting Estimates) and IAS 12 (Deferred Tax) effective October 1, 2023, are not expected to impact the financial statements[208](index=208&type=chunk)[209](index=209&type=chunk) [Critical Accounting Estimates](index=50&type=section&id=8.%20Critical%20Accounting%20Estimates) This section highlights critical accounting estimates requiring significant management judgment, including revenue recognition, goodwill impairment, lease liabilities, business combinations, and income taxes [Critical Accounting Estimates](index=50&type=section&id=Critical%20Accounting%20Estimates) Management makes subjective judgments for revenue recognition, goodwill impairment, right-of-use assets, business combinations, income taxes, and provisions for litigation and claims - Key areas requiring critical accounting estimates include: - Revenue recognition - Goodwill impairment - Right-of-use assets and lease liabilities - Business combinations - Income taxes - Litigation and claims[215](index=215&type=chunk) - For fixed-fee contracts, revenue is recognized using the percentage-of-completion method, primarily based on labor costs incurred versus total estimated costs. This requires ongoing monitoring and re-evaluation of project forecasts[217](index=217&type=chunk) - Goodwill is tested for impairment annually using a value-in-use calculation, which relies on estimates of future cash flows. Historically, no impairment charge on goodwill has been recorded[219](index=219&type=chunk)[220](index=220&type=chunk) [Integrity of Disclosure](index=53&type=section&id=9.%20Integrity%20of%20Disclosure) This section describes the oversight of disclosure integrity and internal controls by the Audit and Risk Management Committee, with CEO/CFO concluding effectiveness as of September 30, 2023 [Integrity of Disclosure](index=53&type=section&id=Integrity%20of%20Disclosure) The Audit and Risk Management Committee oversees disclosure and controls, with the CEO and CFO affirming the effectiveness of disclosure controls and internal financial reporting as of September 30, 2023 - The Board of Directors' Audit and Risk Management Committee, comprised of independent directors, oversees financial reporting, risk management, and internal controls[230](index=230&type=chunk)[231](index=231&type=chunk) - As of September 30, 2023, the CEO and CFO concluded that the Company's disclosure controls and procedures were effective[232](index=232&type=chunk) - Management also concluded that the Company's internal controls over financial reporting were effective as of September 30, 2023, based on the COSO 2013 framework[233](index=233&type=chunk) [Risk Environment](index=54&type=section&id=10.%20Risk%20Environment) This section details the external, industry-related, and business-specific risks that could impact CGI's strategic objectives, including economic conditions, competition, and cybersecurity [Risks and Uncertainties](index=54&type=section&id=10.1.%20RISKS%20AND%20UNCERTAINTIES) CGI faces external, industry, and business-specific risks, including economic volatility, intense competition, IP protection, strategy execution, cybersecurity, and talent retention [External Risks](index=54&type=section&id=10.1.1.%20External%20Risks) External risks include volatile economic/political conditions, armed conflict, inflation, climate change, and pandemics, which can disrupt operations and client spending - Volatile economic and political conditions can negatively affect clients' business activity, leading to contract cancellations, reductions, or delays[236](index=236&type=chunk)[237](index=237&type=chunk) - The company faces risks from armed conflict (e.g., in Ukraine), inflation, climate change, and health emergencies, which can disrupt operations and reduce demand[238](index=238&type=chunk)[239](index=239&type=chunk) - Pandemics can cause significant disruptions, affect client financial viability, and increase the frequency of cybersecurity incidents due to widespread remote work[243](index=243&type=chunk)[245](index=245&type=chunk) [Risks Related to our Industry](index=56&type=section&id=10.1.2.%20Risks%20Related%20to%20our%20Industry) Industry risks include intense competition, the need for continuous service evolution, potential IP infringement, and challenges in protecting proprietary intellectual property - The IT services market is highly competitive, with pressure on pricing from global players, specialized niche firms, and competitors with large, low-cost offshore operations[251](index=251&type=chunk) - The rapid pace of technological change requires continuous development of service offerings; failure to keep pace could adversely affect client retention and new business[254](index=254&type=chunk) - The company faces risks of infringing on others' IP rights, which could lead to costly litigation, and challenges in protecting its own proprietary methodologies and solutions[255](index=255&type=chunk)[257](index=257&type=chunk) [Risks Related to our Business](index=57&type=section&id=10.1.3.%20Risks%20Related%20to%20our%20Business) Business risks include challenges in executing the 'Build and Buy' strategy, cybersecurity threats, talent retention, and reliance on U.S. federal government revenue - Successful execution of the 'Build and Buy' strategy is not guaranteed and depends on identifying suitable acquisition targets and achieving organic growth[263](index=263&type=chunk)[265](index=265&type=chunk) - The company faces significant cybersecurity risks from sophisticated threats, and a failure to protect client or company data could result in financial loss, litigation, and reputational damage[299](index=299&type=chunk)[301](index=301&type=chunk)[307](index=307&type=chunk) - Attracting and retaining qualified IT professionals is critical, and failure to do so could result in lost revenue or increased costs. The company also depends on key employees and senior management[286](index=286&type=chunk)[287](index=287&type=chunk) - A significant portion of revenue is derived from the U.S. federal government, making the business vulnerable to changes in government spending policies or budget priorities[290](index=290&type=chunk)[291](index=291&type=chunk) [Legal Proceedings](index=67&type=section&id=10.2.%20LEGAL%20PROCEEDINGS) CGI is involved in various legal proceedings, but management does not anticipate any current matter will have a material adverse effect on the company's financial position or operations - CGI is involved in legal proceedings and claims in the ordinary course of business, but management does not expect any current matter to have a material adverse effect on the company[321](index=321&type=chunk)

Financial Data and Key Metrics Changes - In Q3 2023, the company reported revenue of CAD 3.62 billion, an increase of 11.2% year-over-year, or 6.3% when excluding foreign exchange impacts [6] - Earnings before income taxes were CAD 559 million, up 14.3% year-over-year, with a margin of 15.4% [9] - Adjusted EBIT was CAD 585 million, reflecting a 12.5% year-over-year increase and a margin of 16.1% [9] - Diluted EPS increased to CAD 1.80, a 16.9% improvement compared to CAD 1.54 in Q3 last year [10] - Net earnings improved to CAD 415 million, up 13.9% year-over-year, with a margin of 11.5% [18] Business Line Data and Key Metrics Changes - The company's IP revenue as a percentage of total revenue was 21%, up CAD 85 million year-over-year, with overall IP portfolio growth of 12.4% year-over-year [7] - Managed services accounted for 57% of total bookings, up from 48% in the prior year [16] - The number of consultants and professionals increased by 3,000 year-over-year, totaling 91,500 worldwide [15] Market Data and Key Metrics Changes - The UK and Australia segments grew by 15%, Asia Pacific by 13%, and Western and Southern Europe by 10% in constant currency [14] - The government sector, the largest vertical market, generated constant currency growth of 11% [14] - The global backlog reached a record CAD 25.6 billion, representing 1.8 times revenue [16] Company Strategy and Development Direction - The company continues to focus on delivering shareholder value through business investments, accretive acquisitions, and stock repurchases [21] - The company is committed to a disciplined approach to M&A, aiming for higher-quality mergers despite a slowdown in the IT services industry's M&A activity [22] - The strategy emphasizes ROI-led digital transformation, with a focus on managed services and IP offerings to drive margin expansion and improve EPS [42] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing macroeconomic uncertainty is intensifying client efforts to prioritize ROI-led digitization [40] - The company anticipates that the demand for broader transformation programs will put pressure on client decision cycles [40] - Management expressed confidence in the company's ability to weather short-term challenges due to strong bookings and a shift towards managed services and IP [104] Other Important Information - The effective tax rate in Q3 was 25.8%, slightly up from 25.5% in the prior year [17] - Cash provided by operating activities was CAD 409 million, with a DSO of 44 days, in line with the target of 45 days [19] - The company plans to allocate CAD 1 billion over the next three years to expand its AI services and solutions [48] Q&A Session Summary Question: Can you expand on the level of engagement with leading players in the AI market? - Management indicated that discussions are broad and focused on preparing data for AI model training [55] Question: How do you see operating costs playing out in the next quarters? - Management expressed satisfaction with the current position, noting strong bookings and increased utilization [56] Question: Will investment in IP increase as a percentage of revenue? - Management stated that investments will be balanced and aligned with client demand [66] Question: What is the outlook for the Canadian business given recent deceleration? - Management believes the deceleration is temporary and expects a return to growth in the next quarter [70] Question: What is driving the strong growth in U.S. Federal bookings? - Management attributed growth to backloaded spending and the need for government digitization [75] Question: Can you elaborate on the valuation gap in the M&A market? - Management noted that sellers are holding onto 2021 valuations while buyers are looking at current market realities [77] Question: Are you seeing pricing pressure in the market? - Management acknowledged some pricing pressure but emphasized opportunities to gain market share through value propositions [85]

Exhibit 99.1 Management's Discussion and Analysis For the three and nine months ended June 30, 2023 and 2022 Management's Discussion and Analysis For the three and nine months ended June 30, 2023 and 2022 July 26, 2023 BASIS OF PRESENTATION This Management's Discussion and Analysis of the Financial Position and Results of Operations (MD&A) is a responsibility of management and has been reviewed and approved by the Board of Directors. This MD&A has been prepared in accordance with the rules and regulations o ...

CGI, Inc. (NYSE:GIB) Q2 2023 Earnings Conference Call April 26, 2023 9:00 AM ET Company Participants Kevin Linder - Senior Vice President, Investor Relations Steve Perron - Executive Vice President and Chief Financial Officer George Schindler - President and Chief Executive Officer Conference Call Participants Thanos Moschopoulos - BMO Capital Markets Paul Treiber - RBC Capital Markets Richard Tse - National Bank Financial Daniel Chan - TD Securities Jerome Dubreuil - Desjardins Securities Divya Goyal - Sco ...