Exhibit 99.2

Interim Condensed Consolidated Financial Statements of

CGI INC.

For the three months ended December 31, 2020 and 2019

(unaudited)

Interim Consolidated Statements of Earnings

For the three months ended December 31

(in thousands of Canadian dollars, except per share data) (unaudited)

	Notes	2020			2019
		$			$
Revenue	8		3,019,441			3,054,747
Operating expenses
Costs of services, selling and administrative			2,526,474			2,579,774
Acquisition-related and integration costs	6c		4,739			20,234
Restructuring costs			—			31,178
Net finance costs			27,178			26,722
Foreign exchange (gain) loss			(2,759	)		867
			2,555,632			2,658,775
Earnings before income taxes			463,809			395,972
Income tax expense			120,358			105,779
Net earnings			343,451			290,193
Earnings per share
Basic earnings per share	5c		1.34			1.08
Diluted earnings per share	5c		1.32			1.06

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 1

Interim Consolidated Statements of Comprehensive Income

For the three months ended December 31

(in thousands of Canadian dollars) (unaudited)

	2020			2019
	$			$
Net earnings		343,451			290,193
Items that will be reclassified subsequently to net earnings (net of income taxes):
Net unrealized (losses) gains on translating financial statements of foreign operations		(78,314	)		35,790
Net gains (losses) on cross-currency swaps and on translating long-term debt designated as hedges of net investments in foreign operations		77,813			(6,062	)
Deferred (costs) gains of hedging on cross-currency swaps		(3,544	)		363
Net unrealized losses on cash flow hedges		(9,831	)		(2,681	)
Net unrealized losses on financial assets at fair value through other comprehensive income		(192	)		(150	)
Items that will not be reclassified subsequently to net earnings (net of income taxes):
Net remeasurement gains (losses) on defined benefit plans		14,758			(20,011	)
Other comprehensive income		690			7,249
Comprehensive income		344,141			297,442

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 2

Interim Consolidated Balance Sheets

(in thousands of Canadian dollars) (unaudited)

	Notes	As at December 31, 2020	As at September 30, 2020
		$	$
Assets
Current assets
Cash and cash equivalents	7c and 9	1,675,099	1,707,985
Accounts receivable		1,307,568	1,219,302
Work in progress		993,495	1,075,252
Current financial assets	9	17,063	18,500
Prepaid expenses and other current assets		156,897	160,406
Income taxes		1,699	29,363
Total current assets before funds held for clients		4,151,821	4,210,808
Funds held for clients		557,396	725,178
Total current assets		4,709,217	4,935,986
Property, plant and equipment		355,930	372,946
Right-of-use assets		651,211	666,865
Contract costs		233,453	239,376
Intangible assets		515,207	521,462
Other long-term assets		186,132	163,739
Long-term financial assets		138,057	156,569
Deferred tax assets		118,309	113,484
Goodwill		8,363,518	8,379,931
		15,271,034	15,550,358
Liabilities
Current liabilities
Accounts payable and accrued liabilities		1,096,556	1,025,963
Accrued compensation		624,799	672,775
Current portion of long-term debt		590,359	310,764
Deferred revenue		503,591	426,393
Income taxes		181,025	136,928
Current portion of lease liabilities		176,990	178,720
Provisions		158,948	175,632
Current derivative financial instruments	9	14,923	8,328
Total current liabilities before clients’ funds obligations		3,347,191	2,935,503
Clients’ funds obligations		553,033	720,322
Total current liabilities		3,900,224	3,655,825
Long-term debt		2,816,173	3,276,331
Long-term income taxes		6,432	6,720
Long-term lease liabilities		685,173	697,650
Long-term provisions		30,832	23,888
Other long-term liabilities		186,439	185,374
Long-term derivative financial instruments	9	96,720	56,622
Deferred tax liabilities		149,444	158,341
Retirement benefits obligations		226,402	225,447
		8,097,839	8,286,198
Equity
Retained earnings		4,647,788	4,703,642
Accumulated other comprehensive income	4	546,400	545,710
Capital stock	5a	1,717,150	1,761,873
Contributed surplus		261,857	252,935
		7,173,195	7,264,160
		15,271,034	15,550,358

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 3

Interim Consolidated Statements of Changes in Equity

For the three months ended December 31

(in thousands of Canadian dollars) (unaudited)

	Notes	Retained earnings			Accumulated other comprehensive income		Capital stock			Contributed surplus			Total equity
			$			$		$			$			$
Balance as at September 30, 2020			4,703,642			545,710		1,761,873			252,935			7,264,160
Net earnings			343,451			—		—			—			343,451
Other comprehensive income			—			690		—			—			690
Comprehensive income			343,451			690		—			—			344,141
Share-based payment costs			—			—		—			11,704			11,704
Income tax impact associated with stock options			—			—		—			6,371			6,371
Exercise of stock options	5a		—			—		17,557			(3,047	)		14,510
Exercise of performance share units	5a		—			—		6,106			(6,106	)		—
Purchase for cancellation of Class A subordinate voting shares	5a		(399,305	)		—		(36,982	)		—			(436,287	)
Purchase of Class A subordinate voting shares held in trusts	5a		—			—		(31,404	)		—			(31,404	)
Balance as at December 31, 2020			4,647,788			546,400		1,717,150			261,857			7,173,195
	Notes	Retained earnings			Accumulated other comprehensive income		Capital stock			Contributed surplus			Total equity
			$			$		$			$			$
Balance as at September 30, 2019			4,557,855			176,694		1,903,977			245,577			6,884,103
Adoption of IFRS 16			(93,873	)		—		—			—			(93,873	)
Balance as at October 1, 2019			4,463,982			176,694		1,903,977			245,577			6,790,230
Net earnings			290,193			—		—			—			290,193
Other comprehensive income			—			7,249		—			—			7,249
Comprehensive income			290,193			7,249		—			—			297,442
Share-based payment costs			—			—		—			13,202			13,202
Income tax impact associated with stock options			—			—		—			3,408			3,408
Exercise of stock options	5a		—			—		27,434			(4,826	)		22,608
Exercise of performance share units	5a		—			—		8,798			(8,798	)		—
Purchase for cancellation of Class A subordinate voting shares	5a		(15,821	)		—		(1,359	)		—			(17,180	)
Purchase of Class A subordinate voting shares held in trusts	5a		—			—		(24,915	)		—			(24,915	)
Balance as at December 31, 2019			4,738,354			183,943		1,913,935			248,563			7,084,795

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 4

Interim Consolidated Statements of Cash Flows

For the three months ended December 31

(in thousands of Canadian dollars) (unaudited)

	Notes	2020			2019
			$			$
Operating activities
Net earnings			343,451			290,193
Adjustments for:
Amortization, depreciation and impairment			132,417			132,381
Deferred income tax (recovery) expense			(3,548	)		3,490
Foreign exchange gain			(9,253	)		(2,506	)
Share-based payment costs			11,704			13,202
Net change in non-cash working capital items	7a		122,702			28,506
Cash provided by operating activities			597,473			465,266
Investing activities
Net change in short-term investments			1,473			(185	)
Business acquisitions (considering the bank overdraft assumed and cash acquired)			(27,268	)		(133,135	)
Purchase of property, plant and equipment			(16,809	)		(29,506	)
Additions to contract costs			(14,307	)		(13,562	)
Additions to intangible assets			(24,904	)		(23,879	)
Purchase of long-term investments			(1,915	)		(3,959	)
Proceeds from sale of long-term investments			2,609			4,144
Cash used in investing activities			(81,121	)		(200,082	)
Financing activities
Net change in unsecured committed revolving credit facility			—			(159,885	)
Increase of long-term debt			6,425			12,738
Repayment of long-term debt			(39,883	)		(21,334	)
Payment of lease liabilities			(41,019	)		(41,684	)
Repayment of debt assumed in business acquisitions			—			(13,063	)
Payment for remaining shares of Acando1			—			(23,123	)
Purchase of Class A subordinate voting shares held in trusts	5a		(31,404	)		(24,915	)
Purchase and cancellation of Class A subordinate voting shares	5a		(436,055	)		(17,180	)
Issuance of Class A subordinate voting shares			14,511			22,771
Cash used in financing activities			(527,425	)		(265,675	)
Effect of foreign exchange rate changes on cash and cash equivalents			(21,813	)		(262	)
Net decrease in cash and cash equivalents			(32,886	)		(753	)
Cash and cash equivalents, beginning of period			1,707,985			213,831
Cash and cash equivalents, end of period			1,675,099			213,078

¹ Related to a business acquisition made during the year ended September 30, 2019.

Supplementary cash flow information (Note 7).

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 5

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

1. Description of business

CGI Inc. (the Company), directly or through its subsidiaries, provides managed information technology (IT) and business process services (BPS), systems integration and consulting, as well as the sale of software solutions to help clients effectively realize their strategies and create added value. The Company was incorporated under Part IA of the Companies Act (Québec), predecessor to the Business Corporations Act (Québec) which came into force on February 14, 2011 and its Class A subordinate voting shares are publicly traded. The executive and registered office of the Company is situated at 1350 René-Lévesque Blvd. West, Montréal, Québec, Canada, H3G 1T4.

2. Basis of preparation

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB). In addition, the interim condensed consolidated financial statements have been prepared in accordance with the accounting policies set out in Note 3, Summary of significant accounting policies, of the Company’s consolidated financial statements for the year ended September 30, 2020 which were consistently applied to all periods presented.

These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended September 30, 2020.

The Company’s interim condensed consolidated financial statements for the three months ended December 31, 2020 and 2019 were authorized for issue by the Board of Directors on January 26, 2021.

3. Accounting policies

USE OF JUDGEMENTS AND ESTIMATES

For the period ended December 31, 2020, the Company assessed the impact of the uncertainties around the outbreak of the novel strain of the coronavirus, specifically identified as the COVID-19 pandemic, on its balance sheet carrying amounts. This review required the use of judgements and estimates and resulted in no material impacts.

The future impact of COVID-19 uncertainties could generate, in future reporting periods, a significant risk of material adjustments to the following: revenue recognition, deferred tax assets, estimated losses on revenue-generating contracts, impairment of property, plant and equipment, right-of-use assets, intangible assets and goodwill as well as litigation and claims.

FUTURE ACCOUNTING STANDARD CHANGES

The following standards have been issued but are not yet effective as of December 31, 2020:

LIBOR reform with amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16

In August 2020, the IASB issued Interest Rate Benchmark Reform-Phase 2, which amends IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures and IFRS 16 Leases. The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. The standard will be effective on October 1, 2021 for the Company. The Company is currently evaluating the impact of this standard on its financial statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 6

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

4. Accumulated other comprehensive income

	As at			As at
	December 31, 2020			September 30, 2020
	$			$
Items that will be reclassified subsequently to net earnings:
Net unrealized gains on translating financial statements of foreign operations, net of accumulated income tax expense of $57,450 ($56,239 as at September 30, 2020)		924,490			1,002,804
Net losses on cross-currency swaps and on translating long-term debt designated as hedges of net investments in foreign operations, net of accumulated income tax recovery of $51,807 ($63,692 as at September 30, 2020)		(339,649	)		(417,462	)
Deferred gains of hedging on cross-currency swaps, net of accumulated income tax expense of $3,790 ($4,049 as at September 30, 2020)		10,509			14,053
Net unrealized losses on cash flow hedges, net of accumulated income tax recovery of $6,057 ($2,554 as at September 30, 2020)		(15,766	)		(5,935	)
Net unrealized gains on financial assets at fair value through other comprehensive income, net of accumulated income tax expense of $1,225 ($1,291 as at September 30, 2020)		4,148			4,340
Items that will not be reclassified subsequently to net earnings:
Net remeasurement losses on defined benefit plans, net of accumulated income tax recovery of $16,101 ($18,920 as at September 30, 2020)		(37,332	)		(52,090	)
		546,400			545,710

For the three months ended December 31, 2020, $398,000 of the net unrealized losses on cash flow hedges, net of income tax recovery of $235,000, previously recognized in other comprehensive income were reclassified in the consolidated statements of earnings ($4,003,000 of the net unrealized gains on cash flow hedges, net of income tax expense of $1,264,000, were reclassified for the three months ended December 31, 2019).

For the three months ended December 31, 2020, $2,523,000 of the deferred gains of hedging on cross-currency swaps, net of income tax expense of $909,000 were also reclassified in the consolidated statements of earnings ($2,611,000 and $941,000, respectively were reclassified for the three months ended December 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 7

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

5. Capital stock, share-based payments and earnings per share

a)    Capital stock

	Class A subordinate voting shares						Class B multiple voting shares							Total
	Number			Carrying value			Number		Carrying value		Number			Carrying value
				$					$					$
As at September 30, 2020		230,690,875			1,721,491			28,945,706		40,382		259,636,581			1,761,873
Issued upon exercise of stock options1		335,276			17,557			—		—		335,276			17,557
Performance share units (PSUs) exercised2		—			6,106			—		—		—			6,106
Purchased and cancelled3		(4,652,400	)		(36,964	)		—		—		(4,652,400	)		(36,964	)
Purchased and not cancelled3		—			(18	)		—		—		—			(18	)
Purchased and held in trusts4		—			(31,404	)		—		—		—			(31,404	)
As at December 31, 2020		226,373,751			1,676,768			28,945,706		40,382		255,319,457			1,717,150

¹ The carrying value of Class A subordinate voting shares includes $3,047,000 ($4,826,000 for the three months ended December 31, 2019), which corresponds to a reduction in contributed surplus representing the value of accumulated compensation costs associated with the stock options exercised during the period.

² During the three months ended December 31, 2020, 103,381 PSUs were exercised (153,512 during the three months ended December 31, 2019) with a recorded value of $6,106,000 ($8,798,000 during the three months ended December 31, 2019) that was removed from contributed surplus. As at December 31, 2020, 1,449,247 Class A subordinate voting shares were held in trusts under the PSU plans (949,040 as at December 31, 2019).

³ On January 26, 2021, the Company’s Board of Directors authorized, subject to regulatory approval, the renewal of the Normal Course Issuer Bid (NCIB) for the purchase for cancellation of up to 19,184,831 Class A subordinate voting shares on the open market through the Toronto Stock Exchange (TSX), the New York Stock Exchange (NYSE) and/or alternative trading systems or otherwise pursuant to exemption orders issued by securities regulators. The Class A subordinate voting shares are available for purchase for cancellation commencing on February 6, 2021 until no later than February 5, 2022, or on such earlier date when the Company has either acquired the maximum number of Class A subordinate voting shares allowable under the NCIB or decided not to make any further purchases for cancellation under it.

During the three months ended December 31, 2020, the Company purchased for cancellation 4,654,700 Class A subordinate voting shares (169,300 during the three months ended December 31, 2019) under its current NCIB for a cash consideration of $436,287,000 ($17,180,000 for the three months ended December 31, 2019) and the excess of the purchase price over the carrying value in the amount of $399,305,000 ($15,821,000 for the three months ended December 31, 2019) was charged to retained earnings. Of the purchased Class A subordinate voting shares, 2,300 shares with a carrying value of $18,000 and a purchase value of $232,000 were held by the Company and were paid and cancelled subsequent to December 31, 2020.

⁴ During the three months ended December 31, 2020, the trustees, in accordance with the terms of the PSU plans and Trust Agreements, purchased 309,606 Class A subordinate voting shares of the Company on the open market (227,070 during the three months ended December 31, 2019) for a cash consideration of $31,404,000 ($24,915,000 during the three months ended December 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 8

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

5. Capital stock, share-based payments and earnings per share (continued)

b)   Share-based payments

i)    Stock options

Under the Company’s stock option plan, the Board of Directors may grant, at its discretion, stock options to purchase Class A subordinate voting shares to certain employees, officers and directors of the Company and its subsidiaries. The exercise price is established by the Board of Directors and is equal to the closing price of the Class A subordinate voting shares on the TSX on the day preceding the date of the grant. Stock options vest annually over four years from the date of the grant conditionally upon achievement of performance objectives and must be exercised within a ten-year period, except in the event of retirement, termination of employment or death.

The following table presents information concerning the number of outstanding stock options granted by the Company:

Outstanding as at September 30, 2020	8,934,097
Granted	992,890
Exercised (Note 5a)	(335,276	)
Forfeited	(552,080	)
Outstanding as at December 31, 2020	9,039,631

The weighted average fair value of stock options granted during the three months ended December 31 and the weighted average assumptions used in the calculation of their fair value on the date of the grant using the Black-Scholes option pricing model were as follows:

	2020		2019
Grant date fair value ($)		16.75		17.72
Dividend yield (%)		0.00		0.00
Expected volatility (%)1		20.76		16.58
Risk-free interest rate (%)		0.40		1.55
Expected life (years)		4.00		4.00
Exercise price ($)		97.84		110.73
Share price ($)		97.84		110.73

¹ Expected volatility was determined using statistical formulas and based on the weekly historical average of closing daily share prices over the period of the expected life of stock options.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 9

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

5. Capital stock, share-based payments and earnings per share (continued)

b)   Share-based payments (continued)

ii)   Performance share units (PSUs)

The Company operates two PSU plans with similar terms and conditions. Under both plans, the Board of Directors may grant PSUs to certain employees and officers which entitle them to receive one Class A subordinate voting share for each PSU. The vesting performance conditions are determined by the Board of Directors at the time of each grant. PSUs expire on the business day preceding December 31 of the third calendar year following the end of the fiscal year during which the PSU award was made, except in the event of retirement, termination of employment or death. Conditionally upon achievement of performance objectives, granted PSUs under the first plan vest annually over a period of four years from the date of the grant and granted PSUs under the second plan vest at the end of the four-year period.

Class A subordinate voting shares purchased in connection with the PSU plans are held in trusts for the benefit of the participants. The trusts, considered as structured entities, are consolidated in the Company’s consolidated financial statements with the cost of the purchased shares recorded as a reduction of capital stock (Note 5a).

The following table presents information concerning the number of outstanding PSUs granted by the Company:

Outstanding as at September 30, 2020	1,231,470
Granted1	666,648
Exercised (Note 5a)	(103,381	)
Forfeited	(346,099	)
Outstanding as at December 31, 2020	1,448,638

¹  The PSUs granted in the period had a grant date fair value of $93.97 per unit.

c)   Earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the three months ended December 31:

					2020						2019
	Net earnings		Weighted average number of shares outstanding1		Earnings per share		Net earnings		Weighted average number of shares outstanding1		Earnings per share
	$				$		$				$
Basic		343,451		256,902,859		1.34		290,193		268,203,274		1.08
Net effect of dilutive stock options and PSUs2				3,517,028						4,918,312
		343,451		260,419,887		1.32		290,193		273,121,586		1.06

¹  During the three months ended December 31, 2020, 4,654,700 Class A subordinate voting shares purchased for cancellation and 1,449,247 Class A subordinate voting shares held in trusts were excluded from the calculation of the weighted average number of shares outstanding as of the date of the transaction (169,300 and 949,040, respectively during the three months ended December 31, 2019).

²  The calculation of the diluted earnings per share excluded 1,333,235 stock options for the three months ended December 31, 2020 (917,791 for the three months ended December 31, 2019), as they were anti-dilutive.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 10

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

6. Investments in subsidiaries

a)   Business acquisition realized in the current fiscal year

The Company made the following acquisition during the three months ended December 31, 2020:

– On December 31, 2020, the Company acquired the assets of Harris, Mackessy & Brennan, Inc.’s Professional Services Division, for a purchase price of $29,218,000. Based in the United States, the division focused on high-end technology consulting and services for commercial and government clients and is headquartered in Columbus, Ohio.

This acquisition was made to further expands CGI’s footprint in the region and to complement CGI’s proximity model and expertise across key sectors, including utilities and energy, manufacturing, retail, insurance and government.

b)  Business acquisitions realized in the prior fiscal year

During the three months ended December 31, 2020, the Company finalized the fair value of assets acquired and liabilities assumed for SCISYS Group Plc and Meti Logiciels et Services SAS with no significant adjustments.

c)  Acquisition-related and integration costs

The Company expensed $4,739,000 for acquisition-related and integration costs during the three months ended December 31, 2020 ($20,234,000 during the three months ended December 31, 2019). This amount includes acquisition-related costs of nil ($5,583,000 during the three months ended December 31, 2019) and integration costs of $4,739,000 ($14,651,000 during the three months ended December 31, 2019). The acquisition-related costs consisted mainly of professional fees incurred for the acquisitions. The integration costs mainly include terminations of employment of $750,000 accounted for in restructuring provisions ($9,095,000 during the three months ended December 31, 2019), as well as other integration costs of $3,989,000 ($5,556,000 during the three months ended December 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 11

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

7. Supplementary cash flow information

a)  Net change in non-cash working capital items is as follows for the three months ended December 31:

	2020			2019
	$			$
Accounts receivable		(97,725	)		(181,369	)
Work in progress		68,234			98,054
Prepaid expenses and other assets		(19,768	)		48,585
Long-term financial assets		(11,062	)		(5,010	)
Accounts payable and accrued liabilities		74,301			82,777
Accrued compensation		(45,909	)		(65,849	)
Deferred revenue		88,933			32,388
Income taxes		60,573			38,627
Provisions		(13,678	)		12,272
Long-term liabilities		183			482
Derivative financial instruments		(126	)		(22	)
Retirement benefits obligations		18,746			(32,429	)
		122,702			28,506

b)  Net interest paid and income taxes paid are classified within operating activities and are as follows for the three months ended December 31:

	2020		2019
	$		$
Net interest paid		25,316		25,885
Income taxes paid		58,064		60,091

c)  Cash and cash equivalents consisted of unrestricted cash as at December 31, 2020 and September 30, 2020.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 12

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

8. Segmented information

The following tables present information on the Company’s operations which are managed through the following nine operating segments, namely: Western and Southern Europe (primarily France and Portugal); United States (U.S.) Commercial and State Government; Canada; U.S. Federal; United Kingdom (U.K.) and Australia; Central and Eastern Europe (primarily Germany and the Netherlands); Scandinavia; Finland, Poland and Baltics; and Asia Pacific Global Delivery Centers of Excellence (mainly India and Philippines) (Asia Pacific).

The operating segments reflect the current management structure and the way that the chief operating decision-maker, who is the President and Chief Executive Officer of the Company, evaluates the business.

															For the three months ended December 31, 2020
	Western and Southern Europe		U.S. Commercial and State Government		Canada		U.S. Federal		U.K. and Australia		Central and Eastern Europe		Scandinavia		Finland, Poland and Baltics		Asia Pacific		Eliminations			Total
		$		$		$		$		$		$		$		$		$		$			$
Segment revenue		480,320		436,424		429,764		410,986		327,795		318,386		274,539		208,001		161,881		(28,655	)		3,019,441
Segment earnings before acquisition-related and integration costs, net finance costs and income tax expense1		66,238		67,127		99,044		54,901		58,813		41,959		24,158		31,031		52,455		—			495,726
Acquisition-related and integration costs (Note 6c)																							(4,739	)
Net finance costs																							(27,178	)
Earnings before income taxes																							463,809
1  Total amortization and depreciation of $131,032,000 included in the Western and Southern Europe, U.S. Commercial and State Government, Canada, U.S. Federal, U.K. and Australia, Central and Eastern Europe, Scandinavia, Finland, Poland and Baltics and Asia Pacific segments is $18,536,000, $18,546,000, $15,528,000, $12,855,000, $13,459,000, $17,638,000, $16,189,000, $12,117,000 and $6,164,000, respectively for the three months ended December 31, 2020. Amortization includes impairments in Western and Southern Europe for $3,058,000 related to a business solution and in Finland, Poland and Baltics for $3,490,000 related to contract costs. These assets were no longer expected to generate future economic benefits.
													For the three months ended December 31, 2019
	Western and Southern Europe		U.S. Commercial and State Government		Canada		U.S. Federal		U.K. and Australia		Central and Eastern Europe		Scandinavia		Finland, Poland and Baltics		Asia Pacific		Eliminations			Total
	$		$		$		$		$		$		$		$		$		$			$
Segment revenue		493,533		447,974		435,969		421,945		325,837		297,779		303,202		199,023		160,817		(31,332	)		3,054,747
Segment earnings before acquisition-related and integration costs, restructuring costs, net finance costs and income tax expense1		73,644		67,434		99,456		56,165		47,753		31,346		23,526		29,705		45,077		—			474,106
Acquisition-related and integration costs (Note 6c)																							(20,234	)
Restructuring costs																							(31,178	)
Net finance costs																							(26,722	)
Earnings before income taxes																							395,972

¹  Total amortization and depreciation of $132,128,000 included in the Western and Southern Europe, U.S. Commercial and State Government, Canada, U.S. Federal, U.K. and Australia, Central and Eastern Europe, Scandinavia, Finland, Poland and Baltics and Asia Pacific segments is $15,025,000, $20,312,000, $17,474,000, $10,247,000, $17,628,000, $20,079,000, $17,089,000, $8,269,000 and $6,005,000, respectively for the three months ended December 31, 2019.

The accounting policies of each operating segment are the same as those described in Note 3, Summary of significant accounting policies, of the Company’s consolidated financial statements for the year ended September 30, 2020. Intersegment revenue is priced as if the revenue was from third parties.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 13

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

8. Segmented information (continued)

GEOGRAPHIC INFORMATION

The following table provides external revenue information based on the client’s location which is different from the revenue presented under operating segments, due to the intersegment revenue, for the three months ended December 31:

	2020		2019
	$		$
Western and Southern Europe
France		421,170		431,973
Others		57,305		62,740
		478,475		494,713
U.S.1		868,531		887,467
Canada		464,610		465,028
U.K. and Australia
U.K.		362,549		361,139
Australia		16,466		15,376
		379,015		376,515
Central and Eastern Europe
Germany		190,442		173,030
Netherlands		117,770		114,756
Others		19,021		18,169
		327,233		305,955
Scandinavia
Sweden		208,855		229,405
Others		77,236		87,573
		286,091		316,978
Finland, Poland and Baltics
Finland		203,283		197,125
Others		9,620		9,803
		212,903		206,928
Asia Pacific
Others		2,583		1,163
		2,583		1,163
		3,019,441		3,054,747

¹ External revenue included in the U.S. Commercial and State Government and U.S. Federal operating segments was $453,109,000 and $415,422,000, respectively for the three months ended December 31, 2020 ($459,691,000 and $427,776,000, respectively for the three months ended December 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 14

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

8. Segmented information (continued)

INFORMATION ABOUT SERVICES

The following table provides revenue information based on services provided by the Company for the three months ended December 31:

	2020		2019
	$		$
Systems integration and consulting		1,345,050		1,398,367
Managed IT and business process services		1,674,391		1,656,380
		3,019,441		3,054,747

MAJOR CLIENT INFORMATION

Contracts with the U.S. federal government and its various agencies, included within the U.S. Federal operating segment, accounted for $392,976,000 and 13.0% of revenues for the three months ended December 31, 2020 ($394,062,000 and 12.9% for the three months ended December 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 15

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

9. Financial instruments

FAIR VALUE

All financial instruments are initially measured at fair value and are subsequently classified either at amortized cost, at fair value through earnings or at fair value through other comprehensive income.

The Company has made the following classifications:

Amortized cost

Trade accounts receivable, cash included in funds held for clients, long-term receivables within long-term financial assets, accounts payable and accrued liabilities, accrued compensation, long-term debt and clients’ funds obligations.

Fair value through earnings (FVTE)

Cash and cash equivalents, derivative financial instruments and deferred compensation plan assets within long-term financial assets.

Fair value through other comprehensive income (FVOCI)

Long-term bonds included in funds held for clients and in long-term investments within long-term financial assets.

FAIR VALUE HIERARCHY

Fair value measurements recognized in the consolidated balance sheet are classified in accordance with the following levels:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included in Level 1, but that are observable for the asset or liability, either directly or indirectly; and

Level 3: inputs for the asset or liability that are not based on observable market data.

FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Valuation techniques used to value financial instruments are as follows:

- The fair value of Senior U.S. and euro unsecured notes, the unsecured committed revolving credit facility, the unsecured committed term loan credit facilities and the other long-term debt is estimated by discounting expected cash flows at rates currently offered to the Company for debts of the same remaining maturities and conditions;

- The fair value of long-term bonds included in funds held for clients and in long-term investments is determined by discounting the future cash flows using observable inputs, such as interest rate yield curves or credit spreads, or according to similar transactions on an arm’s-length basis;

- The fair value of foreign currency forward contracts is determined using forward exchange rates at the end of the reporting period;

- The fair value of cross-currency swaps and interest rate swaps is determined based on market data (primarily yield curves, exchange rates and interest rates) to calculate the present value of all estimated flows;

- The fair value of cash and cash equivalents is determined using observable quotes; and

- The fair value of deferred compensation plan assets within long-term financial assets is based on observable price quotations and net assets values at the reporting date.

There were no changes in valuation techniques during the three months ended December 31, 2020.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 16

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2020 and 2019

(tabular amounts only are in thousands of Canadian dollars, except per share data) (unaudited)

9. Financial instruments (continued)

FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents the financial liabilities included in the long-term debt measured at amortized cost categorized using the fair value hierarchy:

			As at December 31, 2020				As at September 30, 2020
	Level		Carrying amount		Fair value		Carrying amount		Fair value
			$		$		$		$
Senior U.S. and euro unsecured notes		Level 2		1,164,406		1,242,373		1,211,965		1,297,632
Other long-term debt		Level 2		11,409		11,117		44,842		43,536
				1,175,815		1,253,490		1,256,807		1,341,168

For the remaining financial assets and liabilities measured at amortized cost, the carrying values approximate the fair values of the financial instruments given their short term maturity.

The following table presents financial assets and liabilities measured at fair value categorized using the fair value hierarchy:

	Level		As at December 31, 2020		As at September 30, 2020
			$		$
Financial assets
FVTE
Cash and cash equivalents		Level 2		1,675,099		1,707,985
Deferred compensation plan assets		Level 1		80,947		73,156
				1,756,046		1,781,141
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments included in current financial assets		Level 2
Foreign currency forward contracts				12,328		17,027
Interest rate swaps				4,735		—
Long-term derivative financial instruments		Level 2
Cross-currency swaps				10,756		25,362
Foreign currency forward contracts				5,466		8,636
Interest rate swaps				—		6,180
				33,285		57,205
FVOCI
Short-term investments included in current financial assets		Level 2		—		1,473
Long-term bonds included in funds held for clients		Level 2		148,240		148,470
Long-term investments		Level 2		20,528		22,612
				168,768		172,555
Financial liabilities
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments		Level 2
Cross-currency swaps				11,520		5,320
Foreign currency forward contracts				3,403		3,008
Long-term derivative financial instruments		Level 2
Cross-currency swaps				88,804		52,275
Foreign currency forward contracts				7,916		4,347
				111,643		64,950

There were no transfers between Level 1 and Level 2 during the three months ended December 31, 2020.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2020 and 2019 17