Exhibit 99.2

Interim Condensed Consolidated Financial Statements of

CGI INC.

For the three and six months ended March 31, 2020 and 2019

(unaudited)

Interim Consolidated Statements of Earnings

For the three and six months ended March 31

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

			Three months ended March 31				Six months ended March 31
	Notes		2020		2019		2020		2019
				$		$		$		$
Revenue		9		3,131,141		3,068,263		6,185,888		6,032,209
Operating expenses
Costs of services, selling and administrative				2,645,600		2,610,879		5,225,374		5,137,668
Acquisition-related and integration costs		7c		31,097		8,554		51,331		12,992
Restructuring costs		4		443		—		31,621		—
Net finance costs				26,628		18,781		53,350		33,391
Foreign exchange loss				2,295		3,263		3,162		1,248
				2,706,063		2,641,477		5,364,838		5,185,299
Earnings before income taxes				425,078		426,786		821,050		846,910
Income tax expense				110,230		108,505		216,009		217,155
Net earnings				314,848		318,281		605,041		629,755
Earnings per share
Basic earnings per share		6c		1.19		1.16		2.28		2.29
Diluted earnings per share		6c		1.18		1.14		2.24		2.25

See Notes to the Interim Condensed Consolidated Financial Statements.

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

Interim Consolidated Statements of Comprehensive Income

For the three and six months ended March 31

(in thousands of Canadian dollars) (unaudited)

	Three months ended March 31						Six months ended March 31
	2020			2019			2020			2019
	$			$			$			$
Net earnings		314,848			318,281			605,041			629,755
Items that will be reclassified subsequently to net earnings (net of income taxes):
Net unrealized gains (losses) on translating financial statements of foreign operations		470,348			(214,053	)		506,138			127,502
Net (losses) gains on cross-currency swaps and on translating long-term debt designated as hedges of net investments in foreign operations		(96,867	)		55,156			(102,929	)		(20,036	)
Deferred gains of hedging on cross-currency swaps		16,069			13,763			16,432			20,790
Net unrealized (losses) gains on cash flow hedges		(24,722	)		(49	)		(27,403	)		39,426
Net unrealized (losses) gains on financial assets at fair value through other comprehensive income		(39	)		1,912			(189	)		2,682
Items that will not be reclassified subsequently to net earnings (net of income taxes):
Net remeasurement gains (losses) on defined benefit plans		46,833			(18,415	)		26,822			(25,347	)
Other comprehensive income (loss)		411,622			(161,686	)		418,871			145,017
Comprehensive income		726,470			156,595			1,023,912			774,772

See Notes to the Interim Condensed Consolidated Financial Statements.

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

Interim Consolidated Balance Sheets

(in thousands of Canadian dollars) (unaudited)

	Notes		As at March 31, 2020		As at September 30, 2019
			$		$
Assets
Current assets
Cash and cash equivalents		8c and 10		302,487		213,831
Accounts receivable				1,489,951		1,357,090
Work in progress				1,184,785		1,096,031
Current financial assets		10		30,707		39,931
Prepaid expenses and other current assets				162,538		172,182
Income taxes				1,079		10,206
Total current assets before funds held for clients				3,171,547		2,889,271
Funds held for clients				558,967		368,112
Total current assets				3,730,514		3,257,383
Property, plant and equipment				403,341		397,661
Contract costs				239,564		222,965
Right-of-use assets				685,601		—
Intangible assets				579,778		517,982
Other long-term assets				216,791		180,480
Long-term financial assets				181,861		176,899
Deferred tax assets				99,973		100,539
Goodwill				8,459,816		7,767,837
				14,597,239		12,621,746
Liabilities
Current liabilities
Accounts payable and accrued liabilities				1,201,420		1,108,895
Accrued compensation				626,143		642,897
Current derivative financial instruments		10		10,024		4,902
Deferred revenue				504,760		397,370
Income taxes				184,635		176,243
Provisions				74,064		73,509
Current portion of long-term debt				117,075		113,511
Current portion of lease liabilities				171,831		—
Total current liabilities before clients’ funds obligations				2,889,952		2,517,327
Clients’ funds obligations				557,851		366,796
Total current liabilities				3,447,803		2,884,123
Long-term income taxes				8,805		7,690
Long-term provisions				27,688		24,946
Long-term debt				3,156,573		2,217,696
Long-term lease liabilities				720,704		—
Other long-term liabilities				117,465		213,392
Long-term derivative financial instruments		10		11,802		18,322
Deferred tax liabilities				161,849		178,265
Retirement benefits obligations				184,989		193,209
				7,837,678		5,737,643
Equity
Retained earnings				4,190,821		4,557,855
Accumulated other comprehensive income		5		595,565		176,694
Capital stock		6a		1,740,658		1,903,977
Contributed surplus				232,517		245,577
				6,759,561		6,884,103
				14,597,239		12,621,746

See Notes to the Interim Condensed Consolidated Financial Statements.

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

Interim Consolidated Statements of Changes in Equity

For the six months ended March 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, 2019				4,557,855			176,694		1,903,977			245,577			6,884,103
Adoption of IFRS 16		3		(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				605,041			—		—			—			605,041
Other comprehensive income				—			418,871		—			—			418,871
Comprehensive income				605,041			418,871		—			—			1,023,912
Share-based payment costs				—			—		—			19,885			19,885
Income tax impact associated with stock options				—			—		—			(15,630	)		(15,630	)
Exercise of stock options		6a		—			—		48,427			(8,459	)		39,968
Exercise of performance share units		6a		—			—		8,856			(8,856	)		—
Purchase for cancellation of Class A subordinate voting shares		6a		(878,202	)		—		(165,315	)		—			(1,043,517	)
Purchase of Class A subordinate voting shares held in trusts		6a		—			—		(55,287	)		—			(55,287	)
Balance as at March 31, 2020				4,190,821			595,565		1,740,658			232,517			6,759,561

	Notes		Retained earnings			Accumulated other comprehensive income		Capital stock			Contributed surplus			Total equity
			$			$		$			$			$
Balance as at September 30, 2018				4,251,424			201,596		2,018,592			213,195			6,684,807
Net earnings				629,755			—		—			—			629,755
Other comprehensive income				—			145,017		—			—			145,017
Comprehensive income				629,755			145,017		—			—			774,772
Share-based payment costs				—			—		—			20,714			20,714
Income tax impact associated with stock options				—			—		—			4,378			4,378
Exercise of stock options		6a		—			—		38,627			(6,936	)		31,691
Exercise of performance share units		6a		—			—		7,651			(7,651	)		—
Purchase for cancellation of Class A subordinate voting shares		6a		(454,228	)		—		(49,172	)		—			(503,400	)
Purchase of Class A subordinate voting shares held in trusts		6a		—			—		(30,740	)		—			(30,740	)
Balance as at March 31, 2019				4,426,951			346,613		1,984,958			223,700			6,982,222

See Notes to the Interim Condensed Consolidated Financial Statements.

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

Interim Consolidated Statements of Cash Flows

For the three and six months ended March 31

(in thousands of Canadian dollars) (unaudited)

		Three months ended March 31						Six months ended March 31
	Notes	2020			2019			2020			2019
		$			$			$			$
Operating activities
Net earnings			314,848			318,281			605,041			629,755
Adjustments for:
Amortization and depreciation			130,694			97,966			263,075			193,666
Deferred income taxes			(13,763	)		(13,195	)		(10,273	)		(6,358	)
Foreign exchange loss (gain)			3,155			(5,353	)		649			7,981
Share-based payment costs			6,683			11,250			19,885			20,714
Net change in non-cash working capital items	8a		(45,125	)		53,056			(16,619	)		7,776
Cash provided by operating activities			396,492			462,005			861,758			853,534
Investing activities
Net change in short-term investments			(1,406	)		—			(1,591	)		—
Business acquisitions (considering the bank overdraft assumed and cash acquired)			(139,451	)		(741	)		(272,586	)		(24,249	)
Investment in Acando AB			—			(61,729	)		—			(61,729	)
Purchase of property, plant and equipment			(40,037	)		(43,352	)		(69,543	)		(76,522	)
Additions to contract costs			(22,166	)		(14,279	)		(35,728	)		(34,069	)
Additions to intangible assets			(26,951	)		(24,993	)		(50,830	)		(52,990	)
Purchase of long-term investments			(900	)		(5,480	)		(4,859	)		(8,823	)
Proceeds from sale of long-term investments			1,236			5,025			5,380			5,770
Cash used in investing activities			(229,675	)		(145,549	)		(429,757	)		(252,612	)
Financing activities
Net change in unsecured committed revolving credit facility			(74,738	)		—			(234,623	)		(194,795	)
Increase of long-term debt			1,076,131			3,205			1,088,869			677,728
Repayment of long-term debt			(6,303	)		(13,751	)		(27,637	)		(214,393	)
Payment of lease liabilities			(47,723	)		—			(89,407	)		—
Repayment of debt assumed in business acquisitions			(10,169	)		—			(23,232	)		—
Payment for remaining shares of Acando	7b		—			—			(23,123	)		—
Settlement of derivative financial instruments			—			—			—			(1,934	)
Purchase of Class A subordinate voting shares held in trusts	6a		(30,372	)		—			(55,287	)		(30,740	)
Purchase and cancellation of Class A subordinate voting shares	6a		(1,026,337	)		(159,254	)		(1,043,517	)		(507,580	)
Issuance of Class A subordinate voting shares			17,305			15,340			40,076			30,721
Cash used in financing activities			(102,206	)		(154,460	)		(367,881	)		(240,993	)
Effect of foreign exchange rate changes on cash and cash equivalents			24,798			(24,170	)		24,536			(62	)
Net increase in cash and cash equivalents			89,409			137,826			88,656			359,867
Cash and cash equivalents, beginning of period			213,078			406,132			213,831			184,091
Cash and cash equivalents, end of period			302,487			543,958			302,487			543,958

Supplementary cash flow information (Note 8).

See Notes to the Interim Condensed Consolidated Financial Statements.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 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 CompaniesAct (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, 2019 which were consistently applied to all periods presented, except for the new accounting standards adopted on October 1, 2019, 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, 2019.

The Company’s interim condensed consolidated financial statements for the three and six months ended March 31, 2020 and 2019 were authorized for issue by the Board of Directors on April 28, 2020.

3. Accounting policies

USE OF JUDGEMENTS AND ESTIMATES

The uncertainties around the outbreak of the novel strain of the coronavirus, specifically identified as COVID-19 pandemic required the use of judgements and estimates which resulted in no material impacts for the period ended March 31, 2020. The future impact of COVID-19 uncertainties could generate, in future reporting periods, a significant risk of material adjustment to the carrying amounts of the following: revenue recognition, deferred tax assets, estimated losses on revenue-generating contracts, goodwill impairment, leases, business combinations, provisions for uncertain tax treatments and litigation and claims.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

3. Accounting policies (continued)

ADOPTION OF ACCOUNTING STANDARDS

The following standards have been adopted by the Company on October 1, 2019:

IFRS 16 - Leases

Adoption IFRS 16 - Leases

In January 2016, the IASB issued IFRS 16, Leases, to set out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement. The standard supersedes IAS 17, Leases, and other leases related interpretations, eliminates the lessee’s classification of leases as either operating leases or finance leases and introduces a single lessee accounting model. Lessees recognize a right-of-use asset representing its control of, and right to use, the underlying asset and a lease liability representing its obligation to make future lease payments. The Company adopted IFRS 16 using the modified retrospective method, with no restatement of comparative figures. The Company applied the new standard to contracts that were classified as leases under IAS 17 at the date of initial application. The right-of-use assets were recognized as if IFRS 16 had been applied since the commencement date for real estate leases. For all other leases, the right-of-use assets were measured at an amount equal to the lease liability adjusted by the prepaid amount and the accrued lease payment related to the lease in the balance sheet as at September 30, 2019.

The Company made use of the following practical expedients available on transition date: the definition of a lease, the use of hindsight in determining the lease term, the exclusion of initial direct costs from the measurement of the right-of-use asset at the transition date, the usage of a single incremental borrowing rate for a portfolio of leases with reasonably similar characteristics and adjusting the right-of-use assets for any onerous lease provisions as an alternative to an impairment review.

Accounting policy

The Company identifies a lease if it conveys the right to control the use of an identified asset for a specific period in exchange for a determined consideration. At inception, a right-of-use asset for the underlying asset and corresponding lease liability are presented in the consolidated balance sheet measured on a present value basis. Discount rate used in the present value calculation is the incremental borrowing rate unless the implicit interest rate in the lease can be readily determined. The Company does not recognize a lease liability for short-term leases (expected term of 12 months or less) and leases with low value underlying assets. Payments for those leases are recorded as an expense on a straight-line basis over the lease term.

Lease liabilities are measured at present value of non-cancellable payments, which are mostly made of fixed payments of rent excluding maintenance fees; variable payments that are based on an index or a rate; amounts expected to be payable as residual value guaranties and extension or termination option if reasonably certain to be exercised.

The lease liabilities are subsequently adjusted to reflect interest on the lease liabilities and lease payments made. Lease liabilities are remeasured when there is a modification in the lease term, in the assessment of an option to purchase, in the residual guarantees or in future lease payments due to a change of an index or rate tied to the payments.

The right-of-use assets are measured at initial lease liabilities adjusted by lease payments made before the commencement date, indirect costs and cash incentives received.

The right-of-use assets are depreciated on a straight-line basis over the expected lease term of the underlying asset and is reduced by impairment losses, if any.

The Company estimates the lease term in order to calculate the value of the lease liability at the initial date of the lease. Management uses judgement to determine the appropriate lease term based on the conditions of each lease. To determine the term, the Company considers all factors that create economic incentives to exercise an extension or a termination option. The extension or termination options are only included in the lease term if it is reasonably certain of being exercised. Management considers all facts that create incentive to exercise an extension option or not to take a termination option including leasehold improvements, significant modification of the underlying asset or a business decision.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

3. Accounting policies (continued)

ADOPTION OF ACCOUNTING STANDARDS (CONTINUED)

IFRS 16 - Leases (continued)

Accounting policy (continued)

The discount rate is used to determine the initial carrying amount of the lease liabilities and the right-of-use assets. The Company estimates the incremental borrowing rate for each lease or portfolio of leased assets, as most of the implicit interest rates in the leases are not readily determinable. To calculate the incremental borrowing rate, the Company considers its credit worthiness, the term of the arrangement, any collateral received and the economic environment. The incremental borrowing rates are subject to change mainly due to changes in the economic environment.

Impacts at adoption date

The following table shows the impacts of the adoption of IFRS 16 on the Company’s consolidated balance sheet as of October 1, 2019:

	Balance sheet as at September 30, 2019		IFRS 16 adoption			Balance sheet as at October 1, 2019
	$		$			$
Assets
Accounts receivable		1,357,090		3,319			1,360,409
Prepaid expenses and other current assets		172,182		(6,365	)		165,817
Property, plant and equipment		397,661		(21,863	)		375,798
Right-of-use assets		—		701,346			701,346
Other long-term assets		180,480		607			181,087
Deferred tax assets		100,539		14,778			115,317
Other assets		10,413,794		—			10,413,794
		12,621,746		691,822			13,313,568
Liabilities
Accounts payable and accrued liabilities		1,108,895		(8,037	)		1,100,858
Current portion of provisions		73,509		(3,723	)		69,786
Current portion of long-term debt		113,511		(14,086	)		99,425
Current portion of lease liabilities		—		172,402			172,402
Long-term provisions		24,946		(2,264	)		22,682
Long-term debt		2,217,696		(16,253	)		2,201,443
Long-term lease liabilities		—		739,123			739,123
Other long-term liabilities		213,392		(64,655	)		148,737
Deferred tax liabilities		178,265		(16,812	)		161,453
Other liabilities		1,807,429		—			1,807,429
		5,737,643		785,695			6,523,338
Equity
Retained earnings		4,557,855		(93,873	)		4,463,982
Other equity		2,326,248		—			2,326,248
		6,884,103		(93,873	)		6,790,230
		12,621,746		691,822			13,313,568

Upon adoption of IFRS 16, all operating lease commitments that were presented in the Note 29 of the consolidated financial statements as at September 30, 2019 were recognized as lease liabilities and are now presented in the balance sheet. The Company used its incremental borrowing rates as at October 1, 2019 to measure lease liabilities. The weighted average incremental borrowing rate was 3.69% at the initial application.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

3. Accounting policies (continued)

ADOPTION OF ACCOUNTING STANDARDS (CONTINUED)

IFRS 16 - Leases (continued)

Impacts at adoption date (continued)

The following table reconciles operating lease commitments presented in the consolidated financial statements as at September 30, 2019 and the lease liabilities recognized on October 1, 2019:

Operating lease commitments as at September 30, 2019	847,502
Discounted using the weighted average incremental borrowing rate as at October 1, 2019	(96,638	)
Finance lease obligations presented as at September 30, 2019	30,339
Termination options reasonably certain to be exercised	(22,748	)
Extension options reasonably certain to be exercised	153,070
Lease liabilities recognized as at October 1, 2019	911,525
Current portion of lease liabilities	172,402
Long-term lease liabilities	739,123
Total lease liabilities recognized as at October 1, 2019	911,525

For the three and six months ended March 31, 2020, the impacts of the application of IFRS 16 are a decrease in property costs of $47,972,000 and $95,750,000, respectively, an increase in amortization and depreciation of $38,715,000 and $76,823,000, respectively, as well as an increase in finance costs of $6,899,000 and $14,807,000, respectively. In addition, the cash provided by operating activities increased by $45,200,000 and $84,400,000, respectively, with the offset presented in the cash used in financing activities.

Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest rate benchmark reform

In September 2019, the IASB has amended some of its requirements to address the uncertainty arising from the planned phasing out of interest-rate benchmarks such as interbank offered rates (IBORs). The amendments provide temporary relief from applying specific hedge accounting requirements affected by the interest rate benchmark reform. The amendments impact IFRS 9 Financial instruments, IAS 39 Financial instruments: Recognition and measurement and IFRS 7 Financial instruments: Disclosures. The amendments come into effect for annual periods beginning on or after January 1, 2020 but early adoption is permitted. The Company elected to early adopt the Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest rate benchmark reform as at October 1, 2019 and applied retrospectively the reform to hedging relationship that existed on the application date and to the amount accumulated in the cash flow hedge reserve at that date.

The Company has a debt expiring in December 2023 with a principal amount of U.S. $500,000,000 bearing interest based on the 1 month USD LIBOR rate. The debt has a carrying value of $706,050,000 as at March 31, 2020. The Company has entered into and designated as cash flow hedge cross-currency interest rate swaps with aggregate notional amounts of U.S. $500,000,000 and maturing on the same date as the debt (the hedging instruments) on which it receives interest based on the same 1 month USD LIBOR rate. During the three months ended March 31, 2020, the Company has entered into a new unsecured committed term loan credit facility with a principal amount of U.S. $750,000,000 expiring in March 2022, please refer to note 10. The new facility bears interest based on the 1 month USD LIBOR rate and has a carrying value of $1,058,714,000 as at March 31, 2020.

The Company is planning to renegotiate the terms of the debts and the swaps to replace the related LIBOR elements once a replacement rate for LIBOR is known. Until then, the Company assumes that the LIBOR interest rates used for the settlements on the debts and the swaps will continue to be available beyond the planned phase out date at the end of December 2021.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

4. Restructuring costs

On November 6, 2019, the Company announced a restructuring plan through which it will incur up to $40,000,000 of restructuring costs over the current fiscal year related to the closure of the Brazil operations, the refocusing of the Portugal infrastructure business towards nearshore delivery and the optimization of the Sweden infrastructure business. The Company incurred $443,000 and $31,621,000 of costs related to the announced plan for the three and six months ended March 31, 2020, respectively. These amounts include mostly restructuring costs for terminations of employment.

5. Accumulated other comprehensive income

	As at     March 31, 2020			As at September 30, 2019
	$			$
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 $76,328 ($63,579 as at September 30, 2019)		1,102,497			596,358
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 $80,846 ($67,165 as at September 30, 2019)		(529,305	)		(426,376	)
Deferred gains (costs) of hedging on cross-currency swaps, net of accumulated income tax expense of $1,054 (net of accumulated income tax recovery of $1,113 as at September 30, 2019)		12,341			(4,091	)
Net unrealized (losses) gains on cash flow hedges, net of accumulated income tax recovery of $1,248 (net of accumulated income tax expense of $13,003 as at September 30, 2019)		(3,247	)		24,157
Net unrealized gains on financial assets at fair value through other comprehensive income, net of accumulated income tax expense of $301 ($352 as at September 30, 2019)		1,297			1,486
Items that will not be reclassified subsequently to net earnings:
Net remeasurement gains (losses) on defined benefit plans, net of accumulated income tax expense of $1,091 (net of accumulated income tax recovery of $8,698 as at September 30, 2019)		11,982			(14,840	)
		595,565			176,694

For the six months ended March 31, 2020, $7,737,000 of the net unrealized gains on cash flow hedges, net of income tax expense of $2,503,000, previously recognized in other comprehensive income were reclassified in the consolidated statements of earnings. For the six months ended March 31, 2020, $12,341,000 of the deferred gains of hedging cross-currency swaps, net of income tax expense of $1,054,000 were also reclassified in the consolidated statements of earnings.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

6. 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, 2019		239,857,462			1,863,595			28,945,706		40,382		268,803,168			1,903,977
Issued upon exercise of stock options1		897,125			48,427			—		—		897,125			48,427
Performance share units (PSUs) exercised2		—			8,856			—		—		—			8,856
Purchased and cancelled3		(10,605,464	)		(165,315	)		—		—		(10,605,464	)		(165,315	)
Purchased and held in trusts4		—			(55,287	)		—		—		—			(55,287	)
As at March 31, 2020		230,149,123			1,700,276			28,945,706		40,382		259,094,829			1,740,658

¹  The carrying value of Class A subordinate voting shares includes $8,459,000 ($6,936,000 for the six months ended March 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 six months ended March 31, 2020, 154,318 PSUs were exercised (160,694 during the six months ended March 31, 2019) with a recorded value of $8,856,000 ($7,651,000 during the six months ended March 31, 2019) that was removed from contributed surplus. As at March 31, 2020, 1,246,408 Class A subordinate voting shares were held in trusts under the PSU plans (875,480 as at March 31, 2019).

³  On January 29, 2020, the Company’s Board of Directors authorized and subsequently received the regulatory approval for the renewal of the Normal Course Issuer Bid (NCIB) for the purchase for cancellation of up to 20,149,100 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, 2020 until no later than February 5, 2021, 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 March 31, 2020, the Company purchased for cancellation 6,008,905 Class A subordinate voting shares from the Caisse de dépôt et placement du Québec for a cash consideration of $600,000,000 (nil during the three months ended March 31, 2019). The excess of the purchase price over the carrying value in the amount of $471,455,000 was charged to retained earnings (nil during the three months ended March 31, 2019). The purchase was made pursuant to an exemption order issued by the Autorité des marchés financiers and is considered within the annual aggregate limit that the Company is entitled to purchase under its current NCIB.

In addition, during the six months ended March 31, 2020, the Company purchased for cancellation 4,596,559 Class A subordinate voting shares (6,080,600 during the six months ended March 31, 2019) under its previous and current NCIB for a cash consideration of $443,517,000 ($503,400,000 for the six months ended March 31, 2019) and the excess of the purchase price over the carrying value in the amount of $406,747,000 ($454,228,000 for the six months ended March 31, 2019) was charged to retained earnings.

⁴  During the six months ended March 31, 2020, the trustees, in accordance with the terms of the PSU plans and Trust Agreements, purchased 525,331 Class A subordinate voting shares of the Company on the open market (374,995 during the six months ended March 31, 2019) for a cash consideration of $55,287,000 ($30,740,000 during the six months ended March 31, 2019).

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

6. 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, 2019	9,891,592
Granted	910,440
Exercised (Note 6a)	(897,125	)
Forfeited	(327,907	)
Outstanding as at March 31, 2020	9,577,000

The weighted average fair value of stock options granted during the six months ended March 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 ($)		17.72		16.28
Dividend yield (%)		0.00		0.00
Expected volatility (%)1		16.58		20.07
Risk-free interest rate (%)		1.55		2.32
Expected life (years)		4.00		4.00
Exercise price ($)		110.73		81.30
Share price ($)		110.73		81.30

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 and six months ended March 31, 2020 and 2019 12

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

6. 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 6a).

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

Outstanding as at September 30, 2019	861,485
Granted1	599,317
Exercised (Note 6a)	(154,318	)
Forfeited	(60,345	)
Outstanding as at March 31, 2020	1,246,139

¹  The PSUs granted in the period had a grant date fair value of $107.67 per unit.

c) Earnings per share

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

					2020				Three months ended March 31 2019
	Net earnings		Weighted average number of shares outstanding1		Earnings per share		Net earnings		Weighted average number of shares outstanding1		Earnings per share
		$				$		$				$
Basic		314,848		263,638,028		1.19		318,281		273,390,984		1.16
Net effect of dilutive stock options and PSUs2				4,138,847						4,688,016
		314,848		267,776,875		1.18		318,281		278,079,000		1.14
					2020				Six months ended March 31 2019
	Net earnings		Weighted average number of shares outstanding1		Earnings per share		Net earnings		Weighted average number of shares outstanding1		Earnings per share
		$				$		$				$
Basic		605,041		265,933,573		2.28		629,755		275,200,796		2.29
Net effect of dilutive stock options and PSUs2				4,577,000						4,764,524
		605,041		270,510,573		2.24		629,755		279,965,320		2.25

¹  During the three months ended March 31, 2020, 10,436,164 Class A subordinate voting shares purchased for cancellation and 1,246,408 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 (1,636,500 and 875,480, respectively during the three months ended March 31, 2019). During the six months ended March 31, 2020, 10,605,464 Class A subordinate voting shares purchased for cancellation and 1,246,408 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 (6,080,600 and 875,480, respectively during the six months ended March 31, 2019).

²  The calculation of the diluted earnings per share excluded 914,521 stock options for the three and six months ended March 31, 2020 (1,791,227 for the three and six months ended March 31, 2019), as they were anti-dilutive.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

7. Investments in subsidiaries

a) Significant business acquisitions realized in the current fiscal year

The Company made the following acquisitions during the six months ended March 31, 2020:

– On December 18, 2019, the Company acquired all of the outstanding shares of SCISYS Group Plc (SCISYS), for a purchase price of $130,260,000. Predominantly based in United Kingdom and Germany, SCISYS operates in several sectors, with deep expertise and industry leading solutions in the space and defense sectors, as well as in the media and broadcast news industries, headquartered in Dublin, Ireland.

– On January 20, 2020, the Company acquired all of the outstanding shares of Meti Logiciels et Services SAS (Meti), for a purchase price of $43,404,000. Based in France, Meti is specialized in the development of software solutions for the retail sector across Europe and works with some of Europe’s largest retailers.

– On March 31, 2020, the Company acquired all of the outstanding shares of TeraThink Corporation (TeraThink), for a purchase price of $101,856,000. Based in the United States of America, TeraThink is an information technology and management consulting firm providing digitization, enterprise finance, risk management, and data analytics services to the U.S. federal government and is headquartered in Reston, Virginia.

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

	SCISYS			TeraThink
		$			$
Current assets		56,654			14,457
Property, plant and equipment		15,422			1,475
Right-of-use assets		827			3,843
Intangible assets		26,297			16,952
Goodwill1		130,492			89,951
Current liabilities		(90,173	)		(10,772	)
Deferred tax liabilities		(4,020	)		—
Long-term debt		(9,587	)		(10,160	)
Lease liabilities		(2,147	)		(4,400	)
		123,765			101,346
Cash acquired		6,495			510
Net assets acquired		130,260			101,856
Consideration paid		130,260			101,856

¹  The goodwill arising from the acquisitions mainly represents the future economic value associated to acquired work force and synergies with the Company’s operations. The goodwill of SCISYS is not deductible for tax purposes and the goodwill of TeraThink is 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 six months ended March 31, 2020, the above acquisitions would have contributed approximately $125,000,000 of revenues and individually between 6.0% and 10.5% of earnings before acquisition-related and integration costs, and income taxes to the financial results of the Company had the acquisition dates been October 1, 2019. These figures are indicative of the actual contribution when considering the specific dates of acquisition.

With significant strategic consulting, system integration and customer-centric digital innovation capabilities, these acquisitions were made to complement CGI’s proximity model and expertise across key sectors, including communications, retail, space and defense and government.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

7. Investments in subsidiaries (continued)

b) Business acquisition realized in the prior fiscal year

During fiscal year 2019, the Company acquired 96.1% of the outstanding shares of Acando AB (Acando) and the remaining 3.9% on October 11, 2019 for $23,123,000. During the three months ended March 31, 2020, the Company finalized the fair value of assets acquired and liabilities assumed for Acando with no significant adjustments.

c) Acquisition-related and integration costs

During the three and six months ended March 31, 2020, the Company expensed $31,097,000 and $51,331,000, respectively, for acquisition-related and integration costs. These amounts include acquisition-related costs of $962,000 and $6,545,000, respectively, and integration costs of $30,135,000 and $44,786,000, respectively. The acquisition-related costs consist mainly of professional fees incurred for the acquisitions. The integration costs mainly include terminations of employment of $22,512,000 and $31,607,000, respectively, accounted for in restructuring provisions, as well as other integration costs of $7,623,000 and $13,179,000, respectively.

During the three and six months ended March 31, 2019, the Company expensed $8,554,000 and $12,992,000, respectively, for acquisition-related and integration costs. These amounts included acquisition-related costs of $604,000 and $699,000, respectively, and integration costs of $7,950,000 and $12,293,000, respectively. The acquisition-related costs consist mainly of professional fees incurred for the acquisitions. The integration costs mainly included terminations of employment of $5,956,000 and $8,881,000, respectively, accounted for in restructuring provisions, as well as other integration costs of $1,994,000 and $3,412,000, respectively.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

8. Supplementary cash flow information

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

	Three months ended March 31						Six months ended March 31
	2020			2019			2020			2019
		$			$			$			$
Accounts receivable		166,336			21,901			(15,033	)		60,372
Work in progress		(77,716	)		(56,014	)		20,338			(104,871	)
Prepaid expenses and other assets		(38,659	)		(32,894	)		9,926			(20,831	)
Long-term financial assets		8,562			(3,855	)		3,552			806
Accounts payable and accrued liabilities		(87,206	)		(3,780	)		(4,429	)		22,122
Accrued compensation		(5,511	)		(8,501	)		(71,360	)		(7,712	)
Deferred revenue		2,647			141,697			35,035			51,703
Provisions		(7,517	)		(3,266	)		4,755			(7,256	)
Long-term liabilities		(13,717	)		9,064			(13,235	)		3,404
Retirement benefits obligations		29,686			2,053			(2,743	)		89
Derivative financial instruments		(37	)		(892	)		(59	)		(1,474	)
Income taxes		(21,993	)		(12,457	)		16,634			11,424
		(45,125	)		53,056			(16,619	)		7,776

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

	Three months ended March 31				Six months ended March 31
	2020		2019		2020		2019
		$		$		$		$
Net interest paid		45,773		29,060		71,658		49,316
Income taxes paid		136,697		109,815		196,788		168,937

c)   Cash and cash equivalents consisted of unrestricted cash as at March 31, 2020 and September 30, 2019.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

9. Segmented information

Effective October 1, 2019, the Company realigned its management structure, resulting primarily in the creation of two new operating segments, namely Scandinavia (Sweden, Denmark and Norway) and Finland, Poland and Baltics, collectively formerly known as Northern Europe in the prior fiscal year. As a result, the Company is now managed through nine operating segments, namely: Western and Southern Europe (primarily France, Portugal and Belgium); United States of America (U.S.) Commercial and State Government; Canada; U.S. Federal; United Kingdom (U.K.) and Australia; Central and Eastern Europe (primarily Germany and Netherlands); Scandinavia; Finland, Poland and Baltics; and Asia Pacific Global Delivery Centers of Excellence (mainly India and Philippines) (Asia Pacific). This realignment of management structure also included, to a lesser extent, transfers of some lines of business between our operating segments.

The operating segments reflect the revised 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. The following tables present information on the Company’s operations based on its revised management structure. The Company has retrospectively revised the segmented information for the comparative period to conform to the new segmented information structure.

															For the three months ended March 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		528,472		468,109		435,462		416,884		344,436		309,547		294,279		201,496		168,814		(36,358	)		3,131,141
Segment earnings before acquisition-related and integration costs, restructuring costs, net finance costs and income tax expense1		84,936		69,601		91,552		49,325		53,376		30,549		24,349		31,896		47,662		—			483,246
Acquisition-related and integration costs (Note 7c)																							(31,097	)
Restructuring costs (Note 4)																							(443	)
Net finance costs																							(26,628	)
Earnings before income taxes																							425,078

¹  Total amortization and depreciation of $130,482,000 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 $15,205,000, $19,581,000, $16,659,000, $10,273,000, $16,733,000, $19,705,000, $16,970,000, $9,119,000 and $6,237,000, respectively for the three months ended March 31, 2020.

															For the three months ended March 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		524,833		484,634		448,409		383,943		355,189		293,164		258,725		202,243		149,217		(32,094	)		3,068,263
Segment earnings before acquisition-related and integration costs, net finance costs and income tax expense1		67,077		98,168		88,001		47,860		47,971		19,384		24,097		26,018		35,545		—			454,121
Acquisition-related and integration costs (Note 7c)																							(8,554	)
Net finance costs																							(18,781	)
Earnings before income taxes																							426,786

¹  Total amortization and depreciation of $97,692,000 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 $13,571,000, $18,635,000, $15,709,000, $6,315,000, $16,676,000, $8,959,000, $6,325,000, $7,842,000 and $3,660,000, respectively for the three months ended March 31, 2019.

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

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

9. Segmented information (continued)

															For the six months ended March 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		1,022,005		916,083		871,431		838,829	670,273			607,326		597,481		400,519		329,631		(67,690)		6,185,888
Segment earnings before acquisition-related and integration costs, restructuring costs, net finance costs and income tax expense1		158,580		137,035		191,008		105,490	101,129			61,895		47,875		61,601		92,739		—		957,352
Acquisition-related and integration costs (Note 7c)																						(51,331)
Restructuring costs (Note 4)																						(31,621)
Net finance costs																						(53,350)
Earnings before income taxes																						821,050

¹  Total amortization and depreciation of $262,610,000 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 $30,230,000, $39,893,000, $34,133,000, $20,520,000, $34,361,000, $39,784,000, $34,059,000, $17,388,000 and $12,242,000, respectively for the six months ended March 31, 2020.

															For the six months ended March 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		1,036,897		925,865		894,126		762,676		678,372		574,243		517,829		407,206		294,170		(59,175)		6,032,209
Segment earnings before acquisition-related and integration costs, net finance costs and income tax expense1		139,085		165,004		177,603		100,488		99,195		43,519		43,566		54,791		70,042		—		893,293
Acquisition-related and integration costs (Note 7c)																						(12,992)
Net finance costs																						(33,391)
Earnings before income taxes																						846,910

¹  Total amortization and depreciation of $193,201,000 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 $24,396,000, $36,423,000, $32,158,000, $12,784,000, $33,743,000, $17,545,000, $12,705,000, $15,886,000 and $7,561,000, respectively for the six months ended March 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, 2019, except for the adoption of IFRS 16 as at October 1, 2019. Intersegment revenue is priced as if the revenue was from third parties.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 18

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

9. 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 and six months ended March 31:

	Three months ended March 31				Six months ended March 31
	2020		2019		2020		2019
	$		$		$		$
Western and Southern Europe
France		467,231		456,937		899,204		902,626
Others		61,976		68,822		124,716		138,039
		529,207		525,759		1,023,920		1,040,665
U.S.1		902,465		857,307		1,789,932		1,692,168
Canada		465,992		480,327		931,020		954,130
U.K. and Australia
U.K.		382,435		399,310		743,574		741,049
Australia		12,823		22,461		28,199		47,033
		395,258		421,771		771,773		788,082
Central and Eastern Europe
Germany		183,497		158,066		356,527		309,591
Netherlands		118,234		120,007		232,990		236,627
Others		18,089		19,250		36,258		37,251
		319,820		297,323		625,775		583,469
Scandinavia
Sweden		221,568		203,976		450,973		411,330
Others		87,227		68,678		174,800		135,042
		308,795		272,654		625,773		546,372
Finland, Poland and Baltics
Finland		198,856		202,548		395,981		405,379
Others		9,125		9,512		18,928		19,053
		207,981		212,060		414,909		424,432
Asia Pacific
Others		1,623		1,062		2,786		2,891
		1,623		1,062		2,786		2,891
		3,131,141		3,068,263		6,185,888		6,032,209

¹  External revenue included in the U.S. Commercial and State Government and U.S. Federal operating segments was $479,913,000 and $422,552,000, respectively for the three months ended March 31, 2020 ($467,719,000 and $389,588,000, respectively for the three months ended March 31, 2019). In addition, external revenue included in the U.S. Commercial and State Government and U.S. Federal operating segments was $939,604,000 and $850,328,000, respectively for the six months ended March 31, 2020 ($918,345,000 and $773,823,000, respectively for the six months ended March 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 19

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

9. Segmented information (continued)

INFORMATION ABOUT SERVICES

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

	Three months ended March 31				Six months ended March 31
	2020		2019		2020		2019
	$		$		$		$
Systems integration and consulting		1,457,673		1,574,014		2,856,040		3,131,244
Management of IT and business functions		1,673,468		1,494,249		3,329,848		2,900,965
		3,131,141		3,068,263		6,185,888		6,032,209

MAJOR CLIENT INFORMATION

Contracts with the U.S. federal government and its various agencies, included within the U.S. Federal operating segment, accounted for $400,486,000 and 12.8% of revenues for the three months ended March 31, 2020 ($382,737,000 and 12.5% for the three months ended March 31, 2019) and $794,548,000 and 12.8% of revenues for the six months ended March 31, 2020 ($739,255,000 and 12.3% for the six months ended March 31, 2019).

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 20

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

10. 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 and 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 categorized 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 six months ended March 31, 2020.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 21

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

10. 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 March 31, 2020				As at September 30, 2019
	Level		Carrying amount		Fair value		Carrying amount		Fair value
			$		$		$		$
Senior U.S. and euro unsecured notes		Level 2		1,347,575		1,384,281		1,256,554		1,330,809
Obligations under finance leases		Level 2		—		—		30,339		29,792
Other long-term debt		Level 2		43,135		42,108		33,710		32,783
				1,390,710		1,426,389		1,320,603		1,393,384

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 March 31, 2020, the Company has entered into an unsecured committed term loan credit facility with a principal amount of U.S.$750,000,000 expiring in March 2022. The new unsecured committed term loan credit facility was designated as a hedge of a portion of the Company’s net investment in its U.S. operations.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 22

Notes to the Interim Condensed Consolidated Financial Statements

For the three and six months ended March 31, 2020 and 2019

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

10. 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 March 31, 2020		As at September 30, 2019
			$		$
Financial assets
FVTE
Cash and cash equivalents		Level 2		302,487		213,831
Deferred compensation plan assets		Level 1		62,475		62,627
				364,962		276,458
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments included in current financial assets		Level 2
Cross-currency swaps				1,342		4,243
Foreign currency forward contracts				17,888		25,799
Long-term derivative financial instruments		Level 2
Cross-currency swaps				50,451		45,193
Foreign currency forward contracts				14,908		25,069
Interest rate swaps				8,119		1,380
				92,708		101,684
FVOCI
Short-term investments included in current financial assets		Level 2		11,477		9,889
Long-term bonds included in funds held for clients		Level 2		169,736		180,289
Long-term investments		Level 2		25,693		24,596
				206,906		214,774
Financial liabilities
Derivative financial instruments designated as hedging instruments
Current derivative financial instruments		Level 2
Cross-currency swaps				94		2,982
Foreign currency forward contracts				9,930		1,920
Long-term derivative financial instruments		Level 2
Cross-currency swaps				2,531		16,560
Foreign currency forward contracts				9,271		1,762
				21,826		23,224

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

11.   Subsequent event

On April 2, 2020, the Company amended and restated the two-year unsecured committed term loan credit facility entered into during the three months ended March 31, 2020 to increase the principal amount by U.S. $500,000,000 to a total principal amount of U.S. $1,250,000,000, under the same terms and conditions.

CGI Inc. – Interim Condensed Consolidated Financial Statements for the three and six months ended March 31, 2020 and 2019 23