Exhibit 99.2

Interim Condensed Consolidated Financial Statements of

CGI INC.

For the three months ended December 31, 2021 and 2020

(unaudited)

Interim Consolidated Statements of Earnings

For the three months ended December 31

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

	Notes	2021		2020
		$		$
Revenue	8		3,092,396		3,019,441
Operating expenses
Costs of services, selling and administrative			2,570,607		2,526,474
Acquisition-related and integration costs	6b		2,617		4,739
Net finance costs			25,578		27,178
Foreign exchange loss (gain)			327		(2,759	)
			2,599,129		2,555,632
Earnings before income taxes			493,267		463,809
Income tax expense			125,819		120,358
Net earnings			367,448		343,451
Earnings per share
Basic earnings per share	5c		1.51		1.34
Diluted earnings per share	5c		1.49		1.32

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 1

Interim Consolidated Statements of Comprehensive Income

For the three months ended December 31

(in thousands of Canadian dollars) (unaudited)

	2021			2020
	$			$
Net earnings		367,448			343,451
Items that will be reclassified subsequently to net earnings (net of income taxes):
Net unrealized losses on translating financial statements of foreign operations		(94,040	)		(78,314	)
Net gains on cross-currency swaps and on translating long-term debt designated as hedges of net investments in foreign operations		9,849			77,813
Deferred costs of hedging on cross-currency swaps		(828	)		(3,544	)
Net unrealized gains (losses) on cash flow hedges		7,233			(9,831	)
Net unrealized losses on financial assets at fair value through other comprehensive income		(1,048	)		(192	)
Items that will not be reclassified subsequently to net earnings (net of income taxes):
Net remeasurement (losses) gains on defined benefit plans		(12,585	)		14,758
Other comprehensive (loss) income		(91,419	)		690
Comprehensive income		276,029			344,141

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 2

Interim Consolidated Balance Sheets

(in thousands of Canadian dollars) (unaudited)

	Notes	As at     December 31, 2021		As at September 30, 2021
		$		$
Assets
Current assets
Cash and cash equivalents	7c and 9		1,184,641		1,699,206
Accounts receivable			1,385,574		1,231,452
Work in progress			961,708		1,045,058
Current financial assets	9		20,294		18,961
Prepaid expenses and other current assets			166,985		172,371
Income taxes			6,455		4,936
Total current assets before funds held for clients			3,725,657		4,171,984
Funds held for clients			638,041		593,154
Total current assets			4,363,698		4,765,138
Property, plant and equipment			353,959		352,092
Right-of-use assets			554,387		586,207
Contract costs			234,089		230,562
Intangible assets			533,553		506,793
Other long-term assets			172,748		191,512
Long-term financial assets			159,146		152,658
Deferred tax assets			100,498		96,358
Goodwill			8,232,782		8,139,701
			14,704,860		15,021,021
Liabilities
Current liabilities
Accounts payable and accrued liabilities			938,292		891,374
Accrued compensation and employee-related liabilities			1,014,076		1,084,014
Current portion of long-term debt			74,193		392,727
Deferred revenue			471,489		445,740
Income taxes			223,476		160,651
Current portion of lease liabilities			168,401		167,819
Provisions			50,061		63,549
Current derivative financial instruments	9		6,411		6,497
Total current liabilities before clients’ funds obligations			2,946,399		3,212,371
Clients’ funds obligations			637,159		591,101
Total current liabilities			3,583,558		3,803,472
Long-term debt			3,003,812		3,008,929
Long-term income taxes			—		5,719
Long-term lease liabilities			576,707		609,121
Long-term provisions			21,836		26,576
Other long-term liabilities			195,197		202,662
Long-term derivative financial instruments	9		27,715		41,784
Deferred tax liabilities			128,838		132,038
Retirement benefits obligations			197,961		204,488
			7,735,624		8,034,789
Equity
Retained earnings			4,867,423		4,732,229
Accumulated other comprehensive income	4		240,161		331,580
Capital stock	5a		1,571,878		1,632,705
Contributed surplus			289,774		289,718
			6,969,236		6,986,232
			14,704,860		15,021,021

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 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, 2021				4,732,229			331,580			1,632,705			289,718			6,986,232
Net earnings				367,448			—			—			—			367,448
Other comprehensive loss				—			(91,419	)		—			—			(91,419	)
Comprehensive income (loss)				367,448			(91,419	)		—			—			276,029
Share-based payment costs				—			—			—			15,041			15,041
Income tax impact associated with stock options				—			—			—			1,579			1,579
Exercise of stock options		5a		—			—			13,450			(2,279	)		11,171
Exercise of performance share units		5a		—			—			14,285			(14,285	)		—
Purchase for cancellation of Class A subordinate voting shares		5a		(232,254	)		—			(18,259	)		—			(250,513	)
Purchase of Class A subordinate voting shares held in trusts		5a		—			—			(70,303	)		—			(70,303	)
Balance as at December 31, 2021				4,867,423			240,161			1,571,878			289,774			6,969,236
	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

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 4

Interim Consolidated Statements of Cash Flows

For the three months ended December 31

(in thousands of Canadian dollars) (unaudited)

	Notes	2021			2020
		$			$
Operating activities
Net earnings			367,448			343,451
Adjustments for:
Amortization, depreciation and impairment			118,255			132,417
Deferred income tax recovery			(7,271	)		(3,548	)
Foreign exchange gain			(1,440	)		(9,253	)
Share-based payment costs			15,041			11,704
Net change in non-cash working capital items	7a		(7,708	)		122,702
Cash provided by operating activities			484,325			597,473
Investing activities
Net change in short-term investments			—			1,473
Business acquisitions (considering the bank overdraft assumed and cash acquired)			(121,672	)		(27,268	)
Purchase of property, plant and equipment			(42,593	)		(16,809	)
Additions to contract costs			(16,222	)		(14,307	)
Additions to intangible assets			(25,493	)		(24,904	)
Purchase of long-term investments			(691	)		(1,915	)
Proceeds from sale of long-term investments			813			2,609
Cash used in investing activities			(205,858	)		(81,121	)
Financing activities
Increase of long-term debt			—			6,425
Repayment of long-term debt			(326,788	)		(39,883	)
Payment of lease liabilities			(36,570	)		(41,019	)
Repayment of debt assumed in business acquisitions			(84,558	)		—
Purchase of Class A subordinate voting shares held in trusts	5a		(70,303	)		(31,404	)
Purchase and cancellation of Class A subordinate voting shares	5a		(266,915	)		(436,055	)
Issuance of Class A subordinate voting shares			11,159			14,511
Cash used in financing activities			(773,975	)		(527,425	)
Effect of foreign exchange rate changes on cash and cash equivalents			(19,057	)		(21,813	)
Net decrease in cash and cash equivalents			(514,565	)		(32,886	)
Cash and cash equivalents, beginning of period			1,699,206			1,707,985
Cash and cash equivalents, end of period			1,184,641			1,675,099

See Notes to the Interim Condensed Consolidated Financial Statements.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 5

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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, business consulting, strategic IT consulting and systems integration, 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, 2021 which were consistently applied to all periods presented, except for the new accounting standard adopted on October 1, 2021, as described below in Note 3, Accounting policies.

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, 2021.

The Company’s interim condensed consolidated financial statements for the three months ended December 31, 2021 and 2020 were authorized for issue by the Board of Directors on February 1, 2022.

3. Accounting policies

USE OF JUDGEMENTS AND ESTIMATES

For the period ended December 31, 2021, the Company assessed the impact of the uncertainties around 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 Company will continue to monitor the impact of the development of the COVID-19 pandemic in future reporting periods.

ADOPTION OF ACCOUNTING STANDARD

The following standard has been adopted by the Company on October 1, 2021:

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.

For financial instruments at amortized cost, the amendment introduces a practical expedient such that if a change to contractual cash flow occurs as a direct consequence of the interbank offered rates (IBORs) reform and on economically equivalent terms to the previous basis, it will not result in an immediate gain or loss recognition. As for hedge accounting, the practical expedient allows hedge instrument relationships directly affected by the reform to continue. However, additional ineffectiveness might need to be recorded.

The Company has financial instruments exposed to the 1 month USD Libor rate, which is planned to expire in June 2023. As at December 31, 2021, the only instruments with a maturity date subsequent to June 2023 directly impacted by the IBORs reform are the unsecured committed term loan credit facility and the related cross-currency interest rate swaps (the hedging instruments) expiring in December 2023.

The implementation of this amendment resulted in no impact on the Company’s interim condensed consolidated financial statements. The Company is currently managing the process to transition the existing impacted agreements to an alternative rate.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 6

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

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

3. Accounting policies (continued)

FUTURE ACCOUNTING STANDARD CHANGES

The following standards have been issued but are not yet effective as of December 31, 2021:

In May 2020, the IASB amended IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The amendment clarifies that for assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental cost of fulfilling that contract and an allocation of other costs that relates directly to fulfilling the contract. The standard will be effective on October 1, 2022 for the Company, with earlier application permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

Accounting standards currently issued by the IASB, but effective on October 1, 2023 for the Company, with earlier application permitted, are described in Note 3, Summary of significant accounting policies, of the Company’s consolidated financial statements for the year ended September 30, 2021.

4. Accumulated other comprehensive income

	As at December 31, 2021			As at September 30, 2021
	$			$
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 $43,152 ($43,208 as at September 30, 2021)		517,190			611,230
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 $40,107 ($41,611 as at September 30, 2021)		(257,300	)		(267,149	)
Deferred gains of hedging on cross-currency swaps, net of accumulated income tax expense of $1,529 ($2,369 as at September 30, 2021)		5,741			6,569
Net unrealized gains on cash flow hedges, net of accumulated income tax expense of $3,818 ($1,252 as at September 30, 2021)		12,262			5,029
Net unrealized gains on financial assets at fair value through other comprehensive income, net of accumulated income tax expense of $261 ($592 as at September 30, 2021)		1,143			2,191
Items that will not be reclassified subsequently to net earnings:
Net remeasurement losses on defined benefit plans, net of accumulated income tax recovery of $15,031 ($11,084 as at September 30, 2021)		(38,875	)		(26,290	)
		240,161			331,580

For the three months ended December 31, 2021, $360,000 of the net unrealized gains on cash flow hedges, net of income tax expense of $249,000, previously recognized in other comprehensive income, were reclassified in the consolidated statements of earnings ($398,000 of the net unrealized losses on cash flow hedges, net of income tax recovery of $235,000, were reclassified for the three months ended December 31, 2020).

For the three months ended December 31, 2021, $2,647,000 of the deferred gains of hedging on cross-currency swaps, net of income tax expense of $955,000, were also reclassified in the consolidated statements of earnings ($2,523,000 and $909,000, respectively for the three months ended December 31, 2020).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 7

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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, 2021		219,171,329			1,595,811			26,445,706		36,894		245,617,035			1,632,705
Performance share units (PSUs) exercised1		—			14,285			—		—		—			14,285
Issued upon exercise of stock options2		183,730			13,450			—		—		183,730			13,450
Purchased and cancelled3		(2,460,766	)		(18,259	)		—		—		(2,460,766	)		(18,259	)
Purchased and held in trusts4		—			(70,303	)		—		—		—			(70,303	)
As at December 31, 2021		216,894,293			1,534,984			26,445,706		36,894		243,339,999			1,571,878

¹ During the three months ended December 31, 2021, 212,611 PSUs were exercised (103,381 during the three months ended December 31, 2020) with a recorded value of $14,285,000 ($6,106,000 during the three months ended December 31, 2020) that was removed from contributed surplus. As at December 31, 2021, 1,862,969 Class A subordinate voting shares were held in trusts under the PSU plans (1,449,247 as at December 31, 2020).

² The carrying value of Class A subordinate voting shares includes $2,279,000, which corresponds to a reduction in contributed surplus representing the value of accumulated compensation costs associated with the stock options exercised during the three months ended December 31, 2021 ($3,047,000 during the three months ended December 31, 2020).

³ On February 1, 2022, the Company’s Board of Directors authorized, subject to regulatory approval from the Toronto Stock Exchange (TSX), the renewal of the Normal Course Issuer Bid (NCIB) for the purchase for cancellation of up to 18,781,981 Class A subordinate voting shares on the open market through the 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, 2022 until no later than February 5, 2023, 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 elects to terminate the bid.

During the three months ended December 31, 2021, the Company purchased for cancellation 2,310,766 Class A subordinate voting shares (4,654,700 during the three months ended December 31, 2020) under its current NCIB for a cash consideration of $250,513,000 ($436,287,000 for the three months ended December 31, 2020) and the excess of the purchase price over the carrying value in the amount of $232,254,000 ($399,305,000 for the three months ended December 31, 2020) was charged to retained earnings.

As of September 30,2021, 150,000 Class A subordinate voting shares purchased for cancellation, for a cash consideration of $16,402,000 and with a carrying value of $1,181,000, were held by the Company, and they were paid and cancelled during the three months ended December 31, 2021.

⁴ During the three months ended December 31, 2021, the trustees, in accordance with the terms of the PSU plans and Trust Agreements, purchased 643,629 Class A subordinate voting shares of the Company on the open market (309,606 during the three months ended December 31, 2020) for a cash consideration of $70,303,000 ($31,404,000 during the three months ended December 31, 2020).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 8

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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) Performance share units (PSUs)

During the three months ended December 31, 2021, 782,522 PSUs were granted, 212,611 were exercised (Note 5a) and 126,066 were forfeited. The PSUs granted in the period had a grant date fair value of $109.21 per unit.

ii) Stock options

During the three months ended December 31, 2021, 183,730 stock options were exercised (Note 5a) and 146,447 were forfeited.

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:

					2021						2020
	Net earnings		Weighted average number of shares outstanding1		Earnings per share		Net earnings		Weighted average number of shares outstanding1		Earnings per share
	$				$		$				$
Basic		367,448		242,953,751		1.51		343,451		256,902,859		1.34
Net effect of dilutive stock options and PSUs2				3,857,311						3,517,028
Diluted		367,448		246,811,062		1.49		343,451		260,419,887		1.32

¹ During the three months ended December 31, 2021, 2,460,766 Class A subordinate voting shares purchased for cancellation and 1,864,539 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 (4,654,700 and 1,449,247, respectively during the three months ended December 31, 2020).

² The calculation of the diluted earnings per share excluded 324,089 stock options for the three months ended December 31, 2021 (1,333,235 for the three months ended December 31, 2020), as they were anti-dilutive.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 9

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

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

6. Investments in subsidiaries

a) Business acquisitions realized in the current fiscal year

The Company made the following acquisitions during the three months ended December 31, 2021:

– On October 1, 2021, the Company acquired all of the outstanding shares of Array Holding Company, Inc. (Array), for a purchase price of $63,279,000. Based in the United States, Array is a leading digital services provider that optimizes mission performance for the U.S. Department of Defense and other government organizations and is headquartered in Greenbelt, Maryland.

– On October 28, 2021, the Company acquired all of the outstanding shares of Cognicase Management Consulting (CMC), for a purchase price of $93,080,000. Based in Spain, CMC is a leading provider of technology and management consulting services and solutions, headquartered in Madrid.

The following table presents the preliminary fair value of assets acquired and liabilities assumed for the acquisition of CMC based on the acquisition-date fair values of the identifiable tangible and intangible assets acquired and liabilities assumed:

	$
Current assets		54,783
Property, plant and equipment		1,534
Rights-of-use assets		3,354
Contract costs		1,812
Intangible assets		21,997
Goodwill1		90,835
Current liabilities		(43,034	)
Long-term debt		(38,406	)
Lease liabilities		(3,806	)
Deferred tax liabilities		(2,893	)
		86,176
Cash acquired		6,904
Net assets acquired		93,080
Consideration paid		78,358
Consideration payable		14,722

¹ The goodwill arising from the acquisition mainly represents the future economic value associated to acquired work force and synergies with the Company’s operations. The goodwill is not deductible for tax purposes.

The fair value of assets acquired and liabilities assumed is expected to be completed as soon as management will have gathered all the significant information available and considered necessary in order to finalize this allocation.

For the three months ended December 31, 2021, the above acquisitions would have contributed approximately $50,000,000 of revenues and $2,500,000 of earnings before acquisition-related and integration costs, and income taxes to the financial results of the Company had both the acquisition dates been October 1, 2021. These pro-forma figures are estimated based on the historical financial performance of the acquired businesses prior to the business combinations and do not include any financial synergies.

These acquisitions were made to further expands CGI’s footprint in the region and to complement CGI’s proximity model.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 10

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

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

6. Investments in subsidiaries (continued)

b) Acquisition-related and integration costs

During the three months ended December 31, 2021, the Company expensed $2,617,000, for acquisition-related and integration costs ($4,739,000 during the three months ended December 31, 2020). This amount includes acquisition-related costs of $140,000 (nil during the three months ended December 31, 2020), and integration costs of $2,477,000 ($4,739,000 during the three months ended December 31, 2020). The acquisition-related costs consist mainly of professional fees incurred for the acquisitions. The integration costs include terminations of employment of $998,000 accounted for in restructuring provisions ($750,000 during the three months ended December 31, 2020), and other integration costs of $1,479,000 ($3,989,000 during the three months ended December 31, 2020).

7. Supplementary cash flow information

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

	2021			2020
	$			$
Accounts receivable		(122,740	)		(97,725	)
Work in progress		89,834			68,234
Prepaid expenses and other assets		10,309			(19,768	)
Long-term financial assets		(3,823	)		(11,062	)
Accounts payable and accrued liabilities		60,682			34,404
Accrued compensation and employee-related liabilities		(78,229	)		(6,012	)
Deferred revenue		31,610			88,933
Income taxes		56,970			60,573
Provisions		(19,311	)		(13,678	)
Long-term liabilities		(31,858	)		183
Derivative financial instruments		(292	)		(126	)
Retirement benefits obligations		(860	)		18,746
		(7,708	)		122,702
b)   Net interest paid and income taxes paid are classified within operating activities and are as follows for the three months ended December 31:
	2021			2020
	$			$
Net interest paid		15,633			23,041
Income taxes paid		43,693			58,064

c)   Cash and cash equivalents consisted of unrestricted cash as at December 31, 2021 and September 30, 2021.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 11

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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, Spain 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, 2021
	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		513,539		483,434		465,515		416,575		298,462		331,695		244,957		192,276		183,965		(38,022	)	3,092,396
Segment earnings before acquisition-related and integration costs, net finance costs and income tax expense1		78,890		71,683		119,270		58,859		47,166		47,741		13,818		24,976		59,059		—		521,462
Acquisition-related and integration costs (Note 6b)																						(2,617)
Net finance costs																						(25,578)
Earnings before income taxes																						493,267
1  Total amortization and depreciation of $118,047,000 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 $14,600,000, $17,274,000, $15,540,000, $13,852,000, $9,661,000, $16,447,000, $15,588,000, $8,405,000 and $6,680,000, respectively for the three months ended December 31, 2021.
															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 6b)																						(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 are $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 business solutions 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.

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, 2021. 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, 2021 and 2020 12

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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:

	2021		2020
	$		$
Western and Southern Europe
France		431,823		421,170
Spain		26,895		8,293
Portugal		26,084		26,144
Others		23,007		24,079
		507,809		479,686
U.S.1		935,296		868,531
Canada		502,692		464,610
U.K. and Australia
U.K.		327,306		362,549
Australia		16,154		16,466
		343,460		379,015
Central and Eastern Europe
Germany		198,371		190,442
Netherlands		126,832		117,770
Others		18,003		19,021
		343,206		327,233
Scandinavia
Sweden		191,361		208,855
Others		67,139		77,236
		258,500		286,091
Finland, Poland and Baltics
Finland		191,735		203,283
Others		8,705		9,620
		200,440		212,903
Asia Pacific
Others		993		1,372
		993		1,372
		3,092,396		3,019,441

¹ External revenue included in the U.S. Commercial and State Government and U.S. Federal operating segments was $515,714,000 and $419,582,000, respectively for the three months ended December 31, 2021 ($453,109,000 and $415,422,000, respectively for the three months ended December 31, 2020).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 13

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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:

	2021		2020
	$		$
Managed IT and business process services		1,711,958		1,674,391
Business consulting, strategic IT consulting and systems integration		1,380,438		1,345,050
		3,092,396		3,019,441

MAJOR CLIENT INFORMATION

Contracts with the U.S. federal government and its various agencies, included within the U.S. Federal operating segment, accounted for $402,541,000 and 13.0% of revenues for the three months ended December 31, 2021 ($392,976,000 and 13.0% for the three months ended December 31, 2020).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 14

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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 their 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 and employee-related liabilities, 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)

Short-term investments included in current financial assets, long-term bonds included in funds held for clients and 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 the Senior U.S. unsecured notes, the 5 and 10 year Senior U.S. unsecured notes (2021 U.S. Senior Notes), the 7 year Senior unsecured notes (2021 CAD Senior Notes), the unsecured committed revolving credit facility, the unsecured committed term loan credit facility 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 cash flows;

- The fair value of cash and cash equivalents and short-term investments included in current financial assets 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, 2021.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 15

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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, 2021				As at September 30, 2021
	Level	Carrying amount		Fair value		Carrying amount		Fair value
		$		$		$		$
Senior U.S. unsecured notes	Level 2		569,574		605,860		888,307		936,084
2021 U.S. Senior Notes	Level 2		1,251,685		1,232,012		1,253,226		1,255,055
2021 CAD Senior Notes	Level 2		595,500		571,442		595,331		585,506
Other long-term debt	Level 2		28,654		27,863		31,169		30,345
			2,445,413		2,437,177		2,768,033		2,806,990

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.

During the three months ended December 31, 2021, the Company entered into Canadian dollar to euro fixed for fixed cross-currency swap agreements for a notional amount of $600,000,000, related to the 2021 CAD Senior Notes which has a maturity date of September 2028. The cross-currency swaps were designated as hedging instruments on the Company’s net investment in European operations.

In December 2021, the Company repaid the last tranche of the Senior U.S. unsecured notes issued in 2011 of U.S. $250,000,000, for a total amount of $319,663,000 and settled the related interest rate swaps.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 16

Notes to the Interim Condensed Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(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 financial assets and liabilities measured at fair value categorized using the fair value hierarchy:

	Level		As at December 31, 2021		As at September 30, 2021
			$		$
Financial assets
FVTE
Cash and cash equivalents		Level 2		1,184,641		1,699,206
Deferred compensation plan assets		Level 1		87,551		81,633
				1,272,192		1,780,839
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments included in current financial assets		Level 2
Cross-currency swaps				5,166		4,146
Foreign currency forward contracts				14,102		12,745
Interest rate swaps				—		1,043
Long-term derivative financial instruments		Level 2
Cross-currency swaps				26,530		24,347
Foreign currency forward contracts				9,921		9,231
				55,719		51,512
FVOCI
Short-term investments included in current financial assets		Level 2		1,026		1,027
Long-term bonds included in funds held for clients		Level 2		135,405		136,629
Long-term investments		Level 2		19,416		19,354
				155,847		157,010
Financial liabilities
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments		Level 2
Cross-currency swaps				5,857		5,762
Foreign currency forward contracts				554		735
Long-term derivative financial instruments		Level 2
Cross-currency swaps				26,550		39,918
Foreign currency forward contracts				1,165		1,866
				34,126		48,281

There were no transfers between Level 1 and Level 2 during the three months ended December 31, 2021.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three months ended December 31, 2021 and 2020 17