CGI : Q3 F2023 Press Release EN

GLOBAL PRESS RELEASE

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GIB.A (TSX)

GIB (NYSE)

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CGI reports strong third quarter Fiscal 2023 results

Revenue up 11.2% and diluted Earnings Per Share (EPS) up 15.9%

Q3-F2023 performance highlights

• Revenue of $3.62 billion, up 11.2% year-over-year or 6.3% year-over-year in constant currency1;
• Earnings before income taxes of $559.0 million, up 14.3% year-over-year, for a margin1 of 15.4%;
• Adjusted EBIT1 of $584.8 million, up 12.5% year-over-year, for a margin of 16.1%1;
• Net earnings of $415.0 million, up 13.9% year-over-year, for a margin of 11.5%;
• Net earnings excluding specific items1,2 of $425.7 million, up 14.7% year-over-year, for a margin of 11.7%1;
• Diluted EPS of $1.75, up 15.9% year-over-year;
• Diluted EPS excluding specific items1,2 of $1.80, up 16.9% year-over-year;
• Cash from operating activities of $409.1 million, representing 11.3% of revenue;
• Bookings1 of $4.39 billion, for a book-to-bill ratio of 121.1%; and
• Backlog1 of $25.63 billion or 1.8x annual revenue.

Note: All figures in Canadian dollars. Q3-F2023 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at cgi.com/investorsand have been filed with the Canadian securities regulators on SEDAR+ at www.sedarplus.caand the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

Montréal, Quebec, July 26, 2023 - CGI (TSX: GIB.A) (NYSE: GIB)

Q3-F2023 results

"In the third quarter of fiscal 2023, our team again delivered double-digit EPS accretion and sustained margin expansion on a year-over-year basis," said George D. Schindler, President and Chief Executive Officer. "Our results were supported by the combination of our profitable growth strategy, proven operational discipline, and clients' continued trust in CGI as their partner of choice for delivering ROI-led digitization. Strong quarterly bookings were driven by managed services and intellectual property solutions across geographies, highest in government and financial services sectors. Given the current macro-economic environment, CGI's diverse portfolio of geographies, industries and services serve as a resilient foundation for profitable growth."

For the third quarter of Fiscal 2023, the Company reported revenue of $3.62 billion, representing a year-over- year increase of 11.2%. When excluding foreign currency impacts, revenue grew by 6.3% year-over-year.

1 Constant currency growth, diluted EPS excluding specific items, adjusted EBIT, adjusted EBIT margin, net earnings excluding specific items, net earnings margin excluding specific items and diluted EPS excluding specific items are non-GAAP financial measures or ratios. Earnings before income taxes margin, net earnings margin, cash from operating activities as a percentage of revenue, bookings and backlog are key performance measures. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS) measure, as applicable. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies.

2Specific items in Q3-F2023 include: $10.7 million in acquisition-related and integration costs, net of tax; Specific items in Q3-F2022 include: $6.9 million in acquisition-related and integration costs, net of tax.

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Earnings before income taxes were $559.0 million, up 14.3% year-over-year, for a margin of 15.4%, up 40 basis points compared to the same period last year. Adjusted EBIT was $584.8 million, up 12.5% year-over-year, for a margin of 16.1%, up 10 basis points compared to the same period last year.

Net earnings were $415.0 million, up 13.9% compared with the same period last year, for a margin of 11.5%. Diluted earnings per share, as a result, were $1.75 compared to $1.51 last year, representing an increase of 15.9%. When excluding acquisition-related and integration costs, net of tax, net earnings were $425.7 million. This represents an increase of 14.7% year-over-year, and a margin of 11.7%. On the same basis, diluted earnings per share increased by 16.9% to $1.80, up from $1.54 for the same period last year.

The number of CGI consultants and professionals worldwide currently stands at approximately 91,500, representing a year-over-year net increase of 3,000 people.

Cash provided by operating activities was $409.1 million, or 11.3% of revenue, representing a decrease of 2.4% on a year-over-year basis. On a fiscal 2023 year-to-date basis, cash provided by operating activities was $1.48 billion, or 13.8% of revenue, representing an increase of 7.8% on a year-over-year basis.

Bookings were $4.39 billion, up $978 million on a year-over-year basis, representing a book-to-bill ratio of 121.1%. As of June 30, 2023, the Company's backlog stood at $25.63 billion or 1.8x annual revenue.

	Financial highlights			Q3-F2023			Q3-F2022			Change
In millions of Canadian dollars except earnings per share and where noted
Revenue		3,623.4		3,258.6			364.8
Growth		11.2%		7.9%			330 bps
Constant currency growth		6.3%		11.5%			(520 bps)
Earnings before income taxes		559.0		489.0			70.0
	Margin %		15.4%		15.0%			40 bps
Adjusted EBIT		584.8		519.9			64.9
	Margin %		16.1%		16.0%			10 bps
Net earnings		415.0		364.3			50.7
	Margin %		11.5%		11.2%			30 bps
Net earnings excluding specific items1		425.7		371.2			54.5
	Margin %		11.7%		11.4%			30 bps
Diluted EPS		1.75		1.51			0.24
Diluted EPS excluding specific items1		1.80		1.54			0.26
Weighted average number of outstanding shares (diluted)		236.9		240.8			(3.9)
Net finance costs		12.8		22.9			(10.1)
Long-term debt and lease liabilities2		3,765.9		3,840.1			(74.2)
Net debt3		2,279.6		3,073.0			(793.4)
Net debt to capitalization ratio3		21.7%		30.6%			(890 bps)
Cash provided by operating activities		409.1		419.2			(10.1)
	As a percentage of revenue		11.3%		12.9%			(160 bps)
Days sales outstanding (DSO) 3		44		48			(4)
Return on invested capital (ROIC) 3		15.7%		15.8%			(10 bps)
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Bookings	4,388	3,410	978
Backlog	25,633	23,238	2,395

1. Specific items in Q3-F2023 include: $10.7 million in acquisition-related and integration costs, net of tax; Specific items in Q3-F2022 include: $6.9 million in acquisition-related and integration costs, net of tax.
2. Long-termdebt and lease liabilities include both the current and long-term portions of the long-term debt and lease liabilities.
3. Net debt, net debt to capitalization ratio and ROIC are non-GAAP financial measures or ratios. DSO is a key performance measure. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS) measure, as applicable. These are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other companies.

During the third quarter of Fiscal 2023, the Company invested $101.5 million back into its business and $53.1 million under its current Normal Course Issuer Bid to purchase for cancellation 390,100 of its Class A subordinate voting shares, at a weighted average price of $136.02.

Return on invested capital (ROIC) was 15.7%, a decrease of 10 basis points when compared to the prior year, and up 10 basis points sequentially.

As at June 30, 2023, long-term debt and lease liabilities, including both their current and long-term portions, were $3.77 billion, down from $3.84 billion at the same time last year. As of the same date, net debt stood at $2.28 billion, down from $3.07 billion at the same time last year. The net debt-to-capitalization ratio stood at 21.7% at the end of June 2023, down 890 basis points when compared to the prior year.

At the end of June 2023, with cash of $1.5 billion on hand excluding funds held for clients, and a fully available revolving credit facility, the Company had $3.0 billion in readily available liquidity to pursue its Build and Buy profitable growth strategy.

To access the financial statements - click here

To access the Q3-F2023 MD&A - click here

Q3-F2023 results conference call

Management will host a conference call this morning at 9:00 a.m. (EDT) to discuss results. Participants may access the call by dialing [phone] or [phone] Conference ID: 22098618 or via cgi.com/investors. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at cgi.com/investors. Interested parties may also access a replay of the call by dialing [phone] Passcode: 098618, until August 26, 2023.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2022 reported revenue is $12.87 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

Forward-looking information and statements

This press release contains "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

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1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward- looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward- looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem

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to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

For more information:

Investors

Kevin Linder

Senior Vice-President, Investor Relations

[e-mail]

[phone]

Media

Andrée-Anne Pelletier, ARP, PRP

Manager, Global Media and Public Relations [e-mail]

[phone]

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