CGI 2016 Annual Review

CGI 2016 Annual Review

2016 Annual Review HIGH-END BUSINESS AND IT CONSULTING SYSTEMS INTEGRATION TRANSFORMATIONAL OUTSOURCING IP-BASED SERVICES AND SOLUTIONS Your end-to-...

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CGI
CGI Group Inc., the world's fifth largest IT and business process services company. Headquartered in Montréal, Québec,

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Didsbury Rd. GatleyRd. High St. Stockport Rd. Chea. dleRd. K in gsw ay. K in g sw a y. K in gsw ay. K in gsw a y. From.

2016 Annual Review

HIGH-END BUSINESS AND IT CONSULTING SYSTEMS INTEGRATION TRANSFORMATIONAL OUTSOURCING IP-BASED SERVICES AND SOLUTIONS

Your end-to-end partner in digital transformation

At CGI, we’re building upon a 40 year history of listening to the needs of our clients, innovating together to create business value, leading the industry to help clients with their digital transformation, and delivering to achieve stakeholders’ long-term success. This 2016 Annual Review showcases how we serve as our clients’ partner and expert of choice via our unique proximity model in helping drive forward their end-to-end digital transformation. End-to-end digital transformation: Through our end-to-end services and solutions, we deliver digital strategies and technologies and connect them to legacy systems to help clients transform how they operate and engage with digital customers and citizens. Client proximity: CGI’s client proximity model fosters deep understanding of clients’ businesses and strong relationships to provide best-fit digital transformation solutions, supported by our global delivery capabilities and in-depth industry and technology expertise.

DREAM INSPIRED. CLIENT DRIVEN. Since our founding in 1976, we’ve seen computers come out of labs and into our offices, our homes and our pockets. We’ve watched our connected world get smaller and smaller, transcending cultures, languages and borders. We’ve seen bubbles, booms and busts — and, through it all, we’ve helped our clients persevere and grow. Today, we help businesses efficiently and securely move the money that moves the goods that benefit people, communities, countries and continents. We help people save for homes and an education, and provide a safe and secure financial future for their families. We help governments meet the everyday needs of their citizens, supporting a backbone of services that enable healthcare, justice and transportation systems. We help clients maximize the technologies that run their business and then help them change their business by moving through the doors the digital world has opened. We accomplish all this and more through our people. Committed and creative, CGI members understand our clients’ business and the technology that drives forward their digital transformation. We are inspired by the CGI Dream. To create an environment in which we enjoy working together and, as owners, contribute to building a company we can be proud of. We are driven to help our clients succeed.

Watch the video at cgi.com/driven.

2016 ANNUAL REVIEW

WE LISTEN. WE INNOVATE. WE LEAD. WE DELIVER. CONTENTS 2 Built to grow and last Founder and Executive Chairman of the Board Serge Godin and President and Chief Executive Officer George D. Schindler 6 CGI by the numbers 8 14 22 30

Our client commitment To listen To innovate To lead To deliver

36 38 40 42

About CGI Global footprint Leadership team Our strong foundation CGI in our communities

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Built to grow and last Serge Godin, Founder and Executive Chairman of the Board

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George D. Schindler, President and Chief Executive Officer

2016 ANNUAL REVIEW

It’s an extraordinary time to be in business. The digital needs of customers and citizens are bringing about the transformation of commercial and government organizations around the world — and CGI is at the forefront of this change, serving as a leading IT services partner and expert of choice to support our clients’ journeys. As we look ahead, Serge Godin and George D. Schindler share how CGI is best positioned to help our clients transform to become customer-centric, digital enterprises. George was appointed as the third President and CEO in CGI’s 40 year history. How does this change affect CGI’s stakeholders? Serge: When I founded CGI in 1976, my objective was to build a company where our professionals, whom we call members, share in the same CGI Dream: “To create an environment in which we enjoy working together and, as owners, contribute to building a company we can be proud of.” From this ambition, we have built a company that operates based on a uniform set of values, policies, frameworks, processes, operational principles and measures, which make up the CGI Management Foundation. This Foundation provides for the consistent, high-quality execution of our commitments to our three stakeholders — clients, members and shareholders — no matter where CGI operates in the world. George becoming CEO does not represent a change but a continuation of CGI’s ongoing commitment to being the best in the industry — a partner and expert of choice to our clients, a rewarding place in which to build a career for our members, and a long-term profitable investment for our shareholders. With 30 years of experience, George has successfully managed large operations in IT and management consulting. He joined CGI in 2004 and has led our U.S. business, North American operations and, most recently as Chief Operating Officer, all global operations reported to him. I have every confidence that as CEO, George is the right leader at the right time to continue our track record of delivering on our promises to all stakeholders. George: I feel deeply privileged to serve as just the third CEO of CGI — and to do so during such a dynamic time in our industry. Our clients are asking for our help as they work to digitally transform to meet the needs of their customers and citizens, and technology plays a central role in supporting them as it moves from being an enabler to a driver of this change. Digital transformation offers our stakeholders endless opportunities to grow. I thank Serge and the Board for their confidence, and look forward to continuing to execute CGI’s Build and Buy profitable growth strategy and taking CGI forward as clients’ trusted and innovative partner on the digital journey ahead. Another milestone from this year is the publication of the CGI Global 1000, which is an outlook on trends and priorities from more than 1,000 in-person conversations with business and technology client executives. What did we learn and how do the findings help shape our strategy? George: Every year as part of CGI’s strategic planning process, we meet in person with business and technology executives to discuss the trends influencing their industries and their key strategic initiatives. We analyze the findings to develop CGI insights and a comprehensive global outlook that we then share with each participating executive. This year, given the clear and compounding trends over the years surrounding the digital agenda globally, we published a report for the benefit of all existing and prospective clients. This outlook is then reflected in our strategic plans to ensure we are best positioned to meet client demand and, as a result, drive value for all CGI stakeholders.

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“ CGI is one of the few global firms with the talent, scale and

end‑to‑end services and solutions necessary to help clients succeed holistically with their digital transformation. ”

In 2016, our clients across the industries we serve said that digital transformation is no longer just an enabler but a driver of their business. More than 70% of leaders cited the pressures from the rapid rise in influence of digital customers and citizens as their top trend. This represents a significant shift in thinking in terms of how clients run, change and grow their organizations. They must modernize and transform today’s legacy assets and connect them to digital business and operating models. Serge: We are the only IT services company that engages in such a comprehensive process to identify the top trends and priorities that are most significant to our clients. We also engage members and shareholders in the strategic planning process, ensuring they have a voice on how to continually advance our strategic goals. These consultations are reflective of our strong culture in which we continuously refine and evolve our strategy to meet the needs of our three stakeholders. In addition to these consultations, we also conduct ongoing satisfaction assessments of each stakeholder group to measure our performance. This ongoing consultation and measurement with a focus on seeking the best equilibrium between our three stakeholders are what produce the best results over the long term. Why is CGI in the best position to serve as clients’ digital transformation partner and expert of choice? George: Clients have a competitive urgency to become digital in a sustainable way. They realize they need to invest in the digital future and transform their organizations across the people, process and technology areas of their business. CGI is one of the few global firms with the talent, scale and end-to-end services and solutions necessary to help clients succeed holistically. Our client proximity model fosters a deep understanding of clients’ businesses and strong relationships to build best-fit innovative digital solutions, supported by our global delivery model that brings forward industry and technology expertise. On the Build side of our strategy, we exploit four strategic levers to help them become digital organizations: • High-end business and IT consulting with a focus on digital • Systems integration to connect legacy assets with digital business and operating models • Transformational outsourcing to improve both how they run and change their organizations • Intellectual property that acts as a digital business accelerator This is an extraordinary time to be in business, and change will continue to happen faster and more expansively than ever before. CGI has all the capabilities required to help clients create a clear, customer-focused vision; a digital-first culture; and an operating model that will deliver accelerated and ongoing value. Serge: The CGI Management Foundation that I discussed earlier is a differentiator and success factor in helping clients transform. Operational discipline is part of CGI’s DNA, and the Foundation has and will continue to serve as a platform for accelerated growth over the years to come. When a client partners with CGI, they can be assured that our model is focused on providing them with the best value, both in terms of project delivery and in bringing forward innovative services and solutions designed specifically to address their industry and market needs. George: On the Buy side, we focus on both transformational deals to further expand our geographic scale and niche acquisitions to strengthen our local proximity metro markets. Together, these two pillars bolster our industry expertise, services and solutions so we can continuously add new capabilities to best serve our clients and help them succeed in a digital world.

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2016 ANNUAL REVIEW

This year’s Annual Review is focused on how CGI listens, innovates, leads and delivers. Can you share a few words on why these four attributes are so important? George: Today, we partner with clients on their most strategic and visible initiatives, helping to protect, grow, improve, develop and innovate the technology that runs their business. This Annual Review demonstrates how we listen to our stakeholders’ perspectives, innovate to solve complex challenges and create new opportunities, lead through our industry and domain expertise, and deliver through operational excellence. Reading through this Annual Review provides a demonstration of how CGI helps clients realize the promises of digital transformation. We thank our clients and shareholders for choosing CGI. Our 68,000 members are committed to striving each day to continue earning your trust and loyalty. We look forward to working together with our clients to gain from the opportunities that our digitally connected world will bring us. Now that CGI has been in business for more than four decades, what can clients, members and shareholders expect in the years to come? Serge: As George mentions, it is a rewarding time to be in the IT services industry. Our long-term commitment to serving our stakeholders is only accelerating as we support clients with their digital transformation. CGI is an institution built to grow and last. As I look ahead to our next 40 years in business, we will continue to be a consolidator within the industry, always evolving to best serve our stakeholders’ needs. Our stakeholders can expect to continue to benefit from CGI’s deep commitment to their success, no matter the economic environment and the business and technology trends leading them forward. To all those with whom we have had the privilege of working, thank you. I look forward with great anticipation to the value we will continue to create for all of our stakeholders in the years to come.

“ Our stakeholders can expect to continue to benefit from CGI’s deep commitment to their success, no matter the economic environment and the business and technology trends leading them forward. ”

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CGI by the numbers CGI is a financially strong and growing company. At CGI, financial strength is not an objective, but a duty — a responsibility that each of our professionals takes seriously. In fact, financial strength is one of our core values. It enables us to continuously invest in the best services and solutions that benefit our clients, support our members in their continuous development, and sustain long-term growth and superior returns for our shareholders. Our global reach combined with our proximity model of serving clients from hundreds of metro markets around the world provides the scale and immediacy required to rapidly respond to clients’ digital transformation needs. Our experts apply deep industry and technology expertise to help clients innovate to deliver great value to their customers and citizens.

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2016 ANNUAL REVIEW

Fiscal 2016 year-over-year results Revenue $10.7B

Backlog $20.9B

Bookings $11.7B

Net earnings $1.1B

EPS (diluted) $3.42

Cash flow from operations $1.3B

up 3.9%

up $181.8M

110% of revenue

up 9.3%

up 12.5%

up 3.4%

History of profitable growth CGI has experienced significant growth through the disciplined execution of our Build and Buy profitable growth strategy — growth that has been key to fulfilling our vision of being a global world-class information technology and business process services leader helping our clients succeed. $70

Members: 68,000 Revenue: $10.7B Share price: $62.49

Since our initial public offering in 1986, we have provided an average return of 19%.

$60

Members: 25,000 Revenue: $3.5B Share price: $7.32

$50

$40

Members: 1,800 Revenue: $122M Share price: $0.42

$30

$20

$10

Members: 450 Revenue: $22M Share price: $0.41 Stock price adjusted for stock splits

1986

1996

2006

2016

Global footprint • One of the largest IT and business process services companies in the world • 68,000 professionals (80% are shareholders) • Geographic footprint that accounts for 81% of IT spend worldwide • 10 focused industry segments that represent 100% of IT spend worldwide • Global delivery capabilities through centers located on 5 continents

Offerings • High-end business and IT consulting • Systems integration • Transformational outsourcing • 150+ IP-based services and solutions

Clients • More than 5,000 clients across the globe in the commercial and public sectors • 8.9 satisfaction score and 9.1 client loyalty score out of 10 based upon 6,378 signed assessments • Strong investment of $350M in the operations, such as in our innovation, cybersecurity, robotics and automation programs, to drive further digital transformation capabilities All figures in Canadian dollars

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We listen. Listening is built into CGI’s DNA We invest in listening to our clients, members and shareholders with one purpose in mind — to better understand how we can exceed their expectations and create ongoing value. We’ve learned throughout more than 40 years in business that the input of our stakeholders combined with the insights of our experts enables us to continuously improve to drive their success. • For our clients, we invest in annual face-to-face conversations and ongoing client satisfaction assessments to give us a deep understanding of their challenges and opportunities. • For our professionals, whom we call members, we conduct an annual consultation to solicit their ideas on how to better serve our clients and grow our business, and also measure their satisfaction throughout each year. • For our shareholders, we hold hundreds of meetings and conduct an independent assessment every year to gain their insight for developing our strategy and improving our execution. Continuously and passionately listening to our stakeholders has enabled us to balance their interests and fulfill their needs. Ultimately, it’s been fundamental to helping our clients succeed, providing rewarding careers for our members and delivering superior returns to our shareholders.

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2016 ANNUAL REVIEW

CLIENTS Digitally transforming for the future — together In today’s digital world, technology has moved beyond its traditional role of enabling business to becoming a driver of business change. At CGI, we use advanced digital technologies and our industry expertise to support clients at every stage of their digital journey.

Aligning our investments with clients’ top trends and priorities In 2016, as part of our annual Voice of Our Clients program, CGI met face-to-face with more than 1,000 business and IT leaders across 10 industries and 20 countries to hear their perspectives on the trends impacting their organizations and the implications these trends have on their businesses. In these in-depth conversations, we discussed their challenges and opportunities, as well as their business and IT priorities, budgets and plans. Each year, CGI incorporates the findings and insights from these conversations into our annual strategic planning process to help refine our thinking, inform our investments and evolve our strategy to better address clients’ evolving needs. We also share the results with participants to help guide their own strategic planning. This year, we went a step beyond and published the findings and insights in the 2016–2017 edition of the CGI Global 1000. The trends and priorities identified in this outlook reflect the acceleration of digital transformation across the industries we serve.

Top 5 global industry trends 71% 62% 51% 34% 27%



Rising influence of consumerization



Evolution of security from defense to differentiator



Relentless regulatory demands



Restructuring of industry business models



Emergence of IT as a driver of business change

Top 5 global business priorities 62% 52% 50% 50% 50%





Improve the customer experience/journey



Generate customer and business insights for better and faster decision-making



Collaborate internally and partner/acquire externally



Optimize and modernize to reduce the costs of running the organization (e.g., automation)



Protect the organization from cyber and other emerging trends

Top 5 global IT priorities 75% 56% 55% 46% 44%



Rationalize and modernize IT to reduce the costs of running the organization



Generate customer and business insights for better and faster decision-making



Protect the organization from cyber and other threats



Develop real-time, end-to-end digital processing



Adopt new delivery models (e.g., SaaS, PaaS, cloud, outsourcing)

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WE LISTEN

Commitment to continuous improvement Satisfying clients is our business. CGI’s commitment to client satisfaction and high-quality and innovative delivery is reflected in our high client satisfaction scores. At CGI, client satisfaction is a key indicator of our success and is carefully measured and managed on a continuous basis through a comprehensive Client Satisfaction Assessment Program (CSAP). As part of the CSAP, clients engage in regular in-person discussions with their account managers to discuss the level of satisfaction with the quality and value of services and expertise provided, identify areas for improvement, and promptly address new opportunities. In response, CGI makes ongoing adjustments to ensure service excellence. The collective results of these client satisfaction meetings across CGI lead to an overall “report card” on CGI’s performance that helps us to better understand our clients’ expectations and requirements and what more we can do to help clients achieve their digital transformation.

2016 Client Satisfaction Assessment Program (CSAP) highlights Number of CSAP surveys Client loyalty Expert of choice



6,378 9.1/10 8.9/10

Industry knowledge Technology expertise

As a leader in food and pharmaceutical distribution in Quebec and Ontario, it’s important that Metro grows its competitive advantage by continuously driving customers’ satisfaction and long-term loyalty. CGI listens to and understands our business priorities and has served as our long-term IT services partner in supporting the efficiency of our back-end operations. Given our mutual trust and successful 15-year history, CGI is a natural partner to help execute our digital transformation roadmap. This year, CGI helped with the implementation and the launch of a comprehensive website and e-commerce service that will enable us to best support our customers as they increasingly choose to shop digitally. The partnership between Metro and CGI has enabled us to deliver a leading technological solution that offers a differentiated and streamlined experience. Marc Giroux, Senior Vice-President Metro Montréal, Canada

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8.9/10 8.8/10

2016 ANNUAL REVIEW

MEMBERS

CGI’s client-driven talent approach CGI has a 40-year track record of investing in talent. Today, we’re 68,000 members strong, serving clients across the globe from hundreds of locations. At CGI, our talent strategy is 100% client centric. We align our hiring with the needs of our clients, and the process is owned by the business leaders closest to our clients. Key client-centric principles that define and guide our talent strategy include: • Client proximity: Our members live and work near clients to provide a high level of accountability and responsiveness. Our local CGI team speaks the clients’ languages, understands their business, and collaborates to advance their goals. • Global expertise: We complement client proximity with the sharing of expertise from CGI members around the world who bring ideas, best practices and solutions to local accounts. We offer best-fit global delivery options, including onsite, onshore, nearshore and offshore delivery. • Ownership culture: CGI’s ownership culture is one of our key differentiators. An impressive 80% of members are CGI shareholders, reflecting a strong personal commitment to the company and our clients’ success. • Learning and development: CGI invests in comprehensive learning and development programs through the CGI Leadership Institute to ensure our members build, maintain and increase the skills they need to respond to clients’ evolving digital needs. • Talent integration: We successfully integrate talent into CGI, with half of our members joining the company through acquisitions or large outsourcing engagements. Our proven practices ensure seamless integrations, with significant value-add to our clients’ businesses. Another key principle is our commitment to listening to members and using their input to shape our strategy, offerings and delivery. This input has proved to be invaluable in aligning our business to client needs and exceeding expectations.



CGI is focused on serving as clients’ partner and expert of choice. This requires the right talent — professionals with the experience and skills to build digital, customer-centric enterprises. At CGI, we invest in recruiting, training and retaining professionals with extensive industry and technology expertise. Through this investment, we help clients accelerate their digital transformation while achieving high client satisfaction and service excellence. We’ll continue to build our team in direct alignment with ensuring our clients’ success on their digital transformation journeys.



Julie Godin Vice-Chair of the Board, Chief Planning and Administration Officer

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WE LISTEN

Client satisfaction drives member satisfaction at CGI Year after year, members rate client satisfaction as key to their own work satisfaction. Through our Member Satisfaction Assessment Program (MSAP), members have the opportunity to provide input related to our client work and suggest ideas for improvement. The program also helps members — through continuous two-way dialogue — to build successful careers by assessing their satisfaction, goals and needs, and ensuring they receive the right support. In addition to the MSAP, CGI conducts an annual Member Consultation that solicits member input on the direction of our company, including how we can better serve clients. In 2016, 74% of members participated in the consultation and provided 51,000 suggestions and observations. As an integral part of our clients’ day-to-day operations, CGI members are in the best position to identify ways to help clients achieve their business goals. Our members are keen to apply their expertise to help clients implement digital strategies that accelerate their transformation. Their input on how we can continue to drive forward our clients’ success is applied to our business plans to ensure we’re well positioned to address client needs in the year ahead and beyond.

2016 Member Satisfaction Assessment Program (MSAP) highlights Number of MSAP surveys

45,127

Client satisfaction provides work satisfaction

8.6/10

Commitment to the company

8.4/10

Living the company’s values

8.3/10

Bordeaux, France

Montréal, Canada

CGI’s Annual Tour: Aligning members with our strategic direction Every year CGI hosts the Annual Tour to launch our business plans across the company. A key part of our strategic planning process, the global event provides an opportunity for leaders to meet with members to share our strategic priorities and engage in two-way dialogue about our performance and future course. Through this in-person gathering, our members gain a greater understanding of our business and clients, equipping them to help improve our performance and better respond to client needs. The event also ensures alignment on the company’s strategic priorities and understanding of the goals to pursue, as a team, during the coming year.

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2016 ANNUAL REVIEW

SHAREHOLDERS Executing a growth strategy to best serve as clients’ partner of choice In the IT industry, companies come and go. CGI is the exception. Our Build and Buy growth strategy is central to ensuring we satisfy the needs of our clients, offer rewarding careers for our members, and provide a superior return over time for our shareholders. As market conditions increasingly favor consolidation, CGI will continue to execute our strategy to meet client demand for global partners. • On the Build side, we invest in our end-to-end digital transformation capabilities, including high-end consulting, systems integration, transformational outsourcing and digital intellectual property (IP), with IP representing 20% of CGI’s revenue. In fiscal 2016, CGI’s book-to-bill ratio was 110%, and 57% of bookings included extensions and renewals, and 43% represented new business. • On the Buy side, we focus on large, transformational acquisitions to further expand our geographic presence and critical mass, and small, niche acquisitions that provide deep local relationships, rich industry expertise, and digital transformation skillsets. These opportunities are identified through our client conversations and CGI Global 1000 insights (see pages 9 and 10). This year, we made the following strategic niche acquisitions: JSL, a leading Toronto-based consultancy specializing in banking and agile development; Alcyane, a French high-end consulting firm, also specializing in banking; and Collaborative Consulting, a Boston-based consulting firm with a focus on digital solutions, particularly in the areas of financial services and life sciences. Both sides of the strategy complement one another: We build organically to invest on the Build side, while the Buy side drives organic growth by offering clients additional resources and capabilities. CGI is well recognized by the investment community for this strategy, and our financial strength will continue to support CGI’s ability to help clients drive forward their digital transformation.

2016 Shareholder Satisfaction Assessment Program (SSAP) highlights Number of investor meetings Operational discipline

223 9.4/10

M&A execution

8.9/10

Credibility

8.9/10

Helsinki, Finland

Rotterdam, Netherlands

Stockholm, Sweden

This year’s event — Dream inspired. Client driven. — placed an emphasis on how CGI members are driven to help bring our clients’ digital transformation dreams to life. The gathering brought together CGI professionals from across our global operations.

37,000 participants | 18 countries | 4 days | 11 global broadcasts Throughout the Annual Tour, members were invited to share stories of how they are collaborating across the globe to bring forward the full strength of CGI’s digital capabilities to benefit our clients. These stories provided further demonstration of how the work we do helps clients satisfy their digital customers and citizens.

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We innovate. Aligning innovation programs and investments to the needs of our clients CGI is a trusted partner with more than 40 years of experience in delivering innovative, client-inspired business solutions. These solutions accelerate our clients’ digital transformation and enable them to achieve their goals faster with reduced risk and enduring results. From the creation of a new solution to the ongoing evolution of our top commercial intellectual property (IP), CGI uses the CGI Global 1000 outlook — insights from our annual 1,000 in-person conversations with business and IT leaders — and our day-to-day work with clients to inform our investments.

Helping a Swedish biobank benefit from 3D modeling



Working in an environment with extreme conditions creates great demands. Every day, we handle several hundred samples stored at minus 80 degrees Celsius. Up to now, there has been no means to meet these conditions and provide support in our daily work. Together with CGI and HoloLens, we see several opportunities that can contribute to the efficiency and management of these important research samples while the working environment for our employees greatly improves. This is a very exciting project for us that also might lead to many new ideas and applications in healthcare and research. Jenny Åkerblom, Department Head Biobank North, Västerbotten County Council Umeå, Sweden

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2016 ANNUAL REVIEW

TURNING IDEAS INTO OUTCOMES Programs that harness, generate, assess and fund innovation CGI’s Innovation, Creativity and Experimentation (ICE) program is a cross-company initiative that harnesses new solutions to help clients with their digital transformation. Through “calls to action,” CGI professionals submit ideas to solve a business challenge, and the best ideas are funded to create proofs of concept and demos for clients. Proven solutions are then further developed to become part of the CGI commercial intellectual property (IP) portfolio. To further support client innovation, CGI also runs an On-the-Job Innovation program to harvest ideas from proposals and from those ideas developed while working on a client project. Learn more at cgi.com/innovation.

Innovation, Creativity and Experimentation (ICE) program highlights

61 calls to action   2,782 ideas submitted   40 ideas funded In 2016, funded ideas included… Automation and artificial intelligence

• Genomics as a service offering that supports improved diagnostic decisions • Migration management tool that allows IT infrastructure modernization projects to be completed with cost and time efficiencies • Automated incident response management platform to speed IT and security incident responses through machine learning, analytics and automation technologies

Customer experience and digital insights

• Digital retail queue mobile app to enable retailers to digitalize the in-store shopping experience, such as finding the least congested checkout, scheduling an appointment with a sales clerk, and self‑returning a product • BIBO (“Be-In, Be-Out”) charging model to enable train passengers to pay fares on the move • Digital municipal services to provide governments with a pre-packaged suite of standardized services offered via SaaS • Public services app to alert citizens of nearby public services and enable them to make suggestions or report issues • Trusted digital services solution through scalable/adaptive cloud brokerage services to integrate identity, authentication, multilevel electronic/digital signatures, transaction management, certification and safekeeping of reliable original or official electronic records

Cybersecurity

• Car2Car certificate service to enable secure, encrypted communications based on new automotive standards • Cybersecurity monitoring to apply data analysis and predictive modeling to improve operational efficiency and effectiveness within clients’ cyber analytics capability

Internet of • Asset-finding digital tool to attach iBeacon transmitters to mobile resources to help Things (IoT) hospitals quickly locate equipment and measure equipment performance and intelligent • Automated identification technology (AIT) solution to provide data exchange between machines legacy enterprise systems on a secure IoT and SaaS platform • Remote monitoring of high-value assets through the research and development of long‑range wireless communications Trade finance • Automated decision tree for CGI’s trade and transaction reporting services to provide transformation clients with end‑to‑end regulatory reporting • Blockchain for trade finance to store invoice assets and track their status, enabling banks to validate if another bank has already financed them to avoid duplicate financing Digital insights • Analytics as a service platform that extracts meaningful data while reducing IT and business process development time • Digital collaboration platform that enables organizations to share agreed data without the overhead of changing legacy systems or creating a new data warehouse • CGI platform for Microsoft® HoloLens™ to create “information boxes” that display valuable data and to detect and fix data errors automatically while improving the visualization of tasks

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WE INNOVATE

ICE PROGRAM SPOTLIGHT

Driving savings and increasing productivity in running clients’ operations

Robotics process automation Clients seek solutions that will help them better run, change and grow their businesses as they work to become more digital to meet customer and citizen demands. One way they can achieve this is through robotics process automation — or RPA. In August 2016, CIBC World Markets cited that CGI is well positioned to benefit from this technology in an equity research report titled, “Leveraging Robotics And AI To Drive New Opportunities.” To support clients and further CGI’s market position, the ICE program funded two RPA ideas that became solutions to automate the filtering, aggregation and identification of IT events and to manage IT and security incident responses. Proofs of concept were run with several clients, demonstrating successful outcomes such as self-healing workflows and service request automation.



CGI has initiatives such as its central ICE (Innovation, Creativity, Experimentation) programme, plus a central investment committee that all service managers are part of which helps determine the direction. It is investing in digital IP by modernising existing assets (e.g. adding automation around processes, building SaaS solutions, adding BI and IoT capabilities, and paying a lot of attention to visualisation).



Source: Digital Transitions Supplier Progress: CGI (TechMarketView — ESASViews, February 2016)

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2016 ANNUAL REVIEW

POWERING CLIENTS’ BUSINESSES WITH PROVEN IP Accelerating digital transformation through CGI’s business solutions We offer client-driven intellectual property (IP) solutions that include commercial software applications and digital enablers (reusable frameworks, tools and methodologies) that represent years of continuous investment in capturing our industry and technology expertise. These solutions, which include cloud/SaaS, mobility, IoT, data analytics and cybersecurity capabilities, are at the heart of CGI’s end-to-end offerings, which include business process services delivered by highly skilled professionals to increase our clients’ efficiency, services and savings. During 2016, we focused on the IP global initiative, which takes proven solutions within a local market and expands their footprint to benefit additional geographies and industries. Through the initiative, more clients benefitted from CGI’s time-tested, repeatable and differentiated IP. In addition, we continued our focus on pulling together robust IP and business architectures to provide clients with comprehensive offerings most critical to addressing their needs, such as: • The Protect the Bank offering leverages key CGI IP solutions, such as our HotScan filtering software, with a number of digital enablers (cyber protection, command and control, artificial intelligence, intelligent self-learning and big data) to help banks drive efficiency and effectiveness in protecting against financial crime. • The Protect the Payer solution suite draws on our experience in recovering $2.5 billion of improperly paid health claims and combines key CGI IP, such as our data-driven CGI ProperPay solution for claims fraud, waste and abuse, along with our HotScan filtering software and cybersecurity solutions, backed by CGI’s audit services. • The Future Cities solution suite supports local governments in building smarter, more sustainable cities through a robust suite of IP services and solutions that support citizen participation, energy management, government administration, health and social services, education, public safety, transformation and tourism, recreation and culture.

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WE INNOVATE

2016 business solution highlights Portfolio of

150+ mission-critical IP solutions

Representative sampling of CGI’s digital IP footprint: • CGI Atlas360 is used in 100 locations and 70 countries to provide a cost-efficient, global contact center network via SaaS and omni-channel customer relationship management solutions. • Leveraged by clients across industries and geographies, CGI Collections360 is a comprehensive managed services approach to collections and recovery that combines software, business processes and IT services to manage and improve the collections life cycle for commercial and government organizations. • CGI Trade360 supports global trade services for more than 33,000 portal users in 90 countries. • CGI CommunityCare360 is a patient-centric care management solution used by more than 10,000 clinicians and mobile care workers, increasing time dedicated to in-home patients by up to 65%. • With nearly 100 client implementations, Ratabase provides insurance rating and underwriting software across personal and commercial lines of business. • CGI Unify360 is an integrated suite of software, services and tools — including a backbone of analytics, automation and robotics — that provides for the unified management of clients’ hybrid IT environments and enables improved service quality and operational efficiency. • Utilities solutions include the Asset Resource Management (ARM) and Pragma solution suites, which provide asset, outage and mobile workforce management for some of the largest electric utilities in the world; [email protected], which enables meter data management (MDM), data collection, network supervision and other smart grid functionalities; and RMS (Renewables Management System) for the supervision, control and analysis of renewable power plants. View more CGI IP at cgi.com/solutions.

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2016 ANNUAL REVIEW SOLUTION SPOTLIGHT

Evolving with the needs of our clients

CGI Advantage enterprise resource planning CGI Advantage ERP represents CGI’s largest IP solution, and it continues to grow. Our first client was the City of New York 40 years ago, and today the solution is a digital accelerator for hundreds of state and local government ERP programs in the United States. Listening to our clients, we have continuously evolved CGI Advantage. Its next major release will include further digital transformation functionality, such as an enhanced user experience based on responsive design and the integration of leading data analytics capabilities. As a testament to the solution’s continuous growth and evolution, CGI renews and adds new clients to its expansive user base on an ongoing basis. In September 2016, for example, CGI announced that it had been awarded a contract to maintain and modernize financial management systems for the State of Maine through 2026. CGI will provide managed services and solutions that strengthen cloud security, improve financial management and streamline case workflow for 139 state agencies. The media announcement included this testimonial:



The state will benefit from CGI’s innovative private-cloud approach to reduce risk and deliver to our needs. The solution offered us the ability to leverage CGI’s knowledge and experience without the need for us to provide our own infrastructure, security or technical expertise. This approach provides us the greatest level of efficiency and keeps our focus and attention on serving the needs of the state. Doug Cotnoir, State Controller State of Maine Augusta, Maine, United States



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WE INNOVATE

INNOVATING WITH AND FOR OUR CLIENTS Sharing best practices through CGI and industry conferences At CGI, client projects make up our “shop floor” and, through these projects, we innovate together with clients to digitally transform their businesses. At the core of this co-innovation with clients is engaging regularly through our Client Partnership Management Framework and Voice of Our Clients program (see pages 9-10). We also engage through leading user conferences, industry events and more. Here are some example events:

CLIENT CONFERENCES CGI Forum: Every year, the CGI Forum brings together CGI Advantage users to share best practices for maximizing their investment in this leading, built-for-government solution. In 2016, 380 clients attended, taking advantage of more than 80 educational sessions. Innovations (Credit Management Conference): Nearly 200 clients attended CGI’s annual Innovations conference in 2016 to learn more about credit and default management trends, best practices and solutions. Key focus areas included operations, fraud prevention, lending and risk management. Ratkaisu: CGI’s business unit in Finland organizes the Ratkaisu (English meaning Solution) event each year to bring together clients and prospects to discuss key trends such as digitalization, cybersecurity, innovation and the customer experience. In 2016, the event — “A Digital Journey” — brought together more than 1,000 clients, prospects, partners and CGI subject matter experts to discuss innovative ideas for how clients can accelerate their digital transformation. The in-person event also brought the conversation into digital channels, with #Ratkaisu16 being the most popular hashtag in Finland on the day of the event.

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2016 ANNUAL REVIEW

INDUSTRY EVENTS HIMSS: CGI participates in HIMSS (Health Information and Management Systems Society) — the health information management industry’s largest annual conference and exhibition. CGI health experts present the latest innovations in health IT. In 2016, they showed clients how CGI can help deliver safer, more cost-effective and personalized care through digital technologies such as next-generation analytics, cybersecurity and cyberprivacy. Sibos: Sibos is attended by thousands of finance leaders from across the globe. Our experts participate in the event each year, hosting educational and networking sessions that cover key trends and related CGI offerings. During the 2016 event, CGI announced our Protect the Bank offering and released two industry-leading studies — the “Global Transaction Banking Survey” and “FinTech Disruption in Financial Services.” CGI experts and clients meet at the CGI booth at Sibos 2016 in Geneva, Switzerland.

CGI’s Ratkaisu16 conference held in Helsinki, Finland, brought together executives from Finland’s commercial and government organizations with CGI leaders and experts to discuss innovative ideas for how clients and prospects can accelerate their digital transformation.

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We lead.

Bringing legacy and digital together to drive enterprise-wide transformation Our face-to-face interviews with more than 1,000 business and IT leaders in 2016 revealed an accelerated focus on integrating legacy and digital technologies to deliver enterprise-wide change in today’s digital world. CGI applies our industry knowledge and technology expertise to help clients navigate the complexity of digitalization across people, processes and technology and create strategic advantage.

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2016 ANNUAL REVIEW

INDUSTRY EXPERTISE Industries are digitally transforming at different paces Sixty percent of business and technology executives as shared in the CGI Global 1000 outlook said their organizations are in the early stages of digital transformation. The CGI Global 1000 outlook explores the findings and insights across our 10 focused industries as organized against the digital transformation S-curve as seen at right. An organization’s climb up the S-curve depends on the market dynamics of its industry and the nature of its business. Organizations within consumer‑intensive industries are ahead of the pack in terms of their progress, followed by asset-intensive and risk- and investment-intensive industries, respectively. The outlook (see page 47) draws out the similarities and differences of these industries in terms of trends, priorities and plans. In this Annual Review, we share examples of how we are a leading IT services partner to the industries we serve and how we are helping to lead their digital transformation.

Communications

CONSUMER INTENSIVE

Business Urgency

Banking

Retail

Manufacturing BUSINESS INTENSIVE

Transport & Logistics Utilities

RISK & INVESTMENT INTENSIVE

Government

Healthcare Political Urgency

Insurance

Oil & Gas

CGI is helping to lead clients on their digital transformation journeys We understand our clients’ digital challenges and opportunities, and are working closely with them to define and implement digital strategies and roadmaps.

Consumer-intensive industries Banking, communications, retail and consumer services Organizations in consumer-intensive industries are experiencing a high urgency to digitally transform their business models to meet increasing customer demands for new products and services, as well as omni-channel, real-time and personalized service delivery. CGI works with banks, communications service providers (CSPs) and retailers across the globe to help them win the battle for today’s digital customer. Banking • We serve 22 of the top 30 banks globally and 23 of the top 25 banks in both North America and Europe. • We’ve completed 350+ implementations of our collections, recoveries and loan origination solutions. • CGI Trade360 supports global trade finance for 33,000+ portal users in 90+ countries. • Nearly $1.6 trillion in assets are managed through CGI’s portfolio management, investment fund and asset management solutions. • CGI has been leading global payments infrastructure for over 40 years. • We have worked with our top 10 banking clients as their strategic partner for an average of 25 years. Communications • We partner with 6 of the world’s top CSPs in support of their billing, order orchestration, revenue assurance or customer care transformation. • CGI works closely with Bell Canada to create IT solutions that enhance efficiency, reduce costs and improve the customer experience at Canada’s largest and fastest-growing communications company. • We support 18 million+ active machine-to-machine devices globally, helping our clients to grow average revenue per user and diversify revenues. • We manage 1 billion+ wireless call detail records every day for leading CSPs through network mediation systems, helping our clients optimize operations through re-engineering and process automation. Retail and consumer services • Our 4,300 retail professionals support 700+ clients globally across the retail, wholesale, consumer packaged goods and consumer services sectors. • CGI partners with 6 of the largest grocery chains in Europe, delivering omni-channel services and solutions that improve and enhance the customer experience. • CGI has partnered with 5 of the world’s top 10 luxury good brands, improving personalization through the better use of data and analytics. • Our world-class Retail and Consumer Services Center of Excellence, which incorporates the latest retail technologies and solutions, enables our clients to look into their future and understand the type of differentiated experience they can provide to their end customers.

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WE LEAD

Asset-intensive industries Utilities, manufacturing, transportation Whether keeping the lights on, producing goods or transporting goods from one port to another, companies in asset-intensive industries must make massive operational investments and maintain complex technologies. CGI is helping them to reduce their run costs to free up investment for change through digital technologies, such as robotics, Internet of Things, cloud and mobility. Utilities • We partner with 250+ electric, water and gas clients worldwide, as well as 8 of the 10 largest utilities in both Europe and North America. • CGI designed and built 12 of the 18 central market systems in the world, with a majority still operated by CGI in multiple countries. • Our smart data services for smart metering are deployed by a majority of UK electricity suppliers. • CGI’s involvement with high-profile smart grid projects such as Low Carbon London has led to our recognition as a smart grid systems integrator worldwide. • Our award-winning Renewables Management System (RMS) solution controls more than 7,000 turbines on 600 wind farms in 9 countries across the globe. Manufacturing • We serve 700+ manufacturing clients in a wide range of sectors, including automotive, aerospace, high tech, mining, metals, pulp and paper, and chemicals. • Our 2,800+ supply chain experts help clients drive down costs and increase productivity and agility to transform and grow. • CGI’s Manufacturing Atlas methodology has helped hundreds of clients optimize manufacturing IT, drive operational excellence and enable greater personalization. • For the past 17 years, we have tracked the latest trends in manufacturing execution systems (MES) through our MES product survey, which captures key data from 66 MES suppliers from around the world to help our clients and partners navigate this complex market. • A Michelin partner for many years, CGI is working with Michelin to transform and optimize business processes and IT across customer services, including supply chain and logistics, and marketing and sales. Transportation, Post and Logistics • We work with 207 clients in the post and logistics, aviation, rail, maritime, and road and regional transit sectors. • CGI uses predictive analytics, mobile apps, gamification and sensor technology to help clients, such as Helsingin Bussiliikenne Oy (HelB), a bus operator in Helsinki, the City of Rotterdam and transport provider DHL Express in the Netherlands to reduce fuel consumption and carbon emissions and improve driver safety. • CGI is supporting transport and logistics companies by using iBeacon technology to improve operational efficiencies and the customer experience. CGI helped Posti in Finland, for example, become the first in the world to integrate iBeacon technology for indoor parcel tracking, making it easier for customers to pick up and drop off parcels.

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2016 ANNUAL REVIEW

• Using CGI Traffic360, we monitor more than 22,000 kilometers of tolled roads in the Czech Republic, Slovakia and Poland to ensure maximum toll collection. • Pro Logistica is a CGI-built, enterprise-wide mobile retail solution used by 28 airlines worldwide that provides flexible mobile retailing functionality for managing onboard sales and stock movement. • Our GO Airport Operations Suite offers a comprehensive business and technology platform used by 10 airports in Portugal serving approximately 39 million passengers per year to optimize airport operations management. • We offer award-winning customer intelligence solutions, such as our mobile apps iNStapp for train occupancy, My Train for train arrival and Helsinki Journey Planner for trip planning.



Transforming legacy systems with digital solutions to drive operational excellence and customer satisfaction “We turned to CGI for digital solutions and system integration and maintenance services to help streamline our power grid operations, as well as implement innovative mobile workforce management capabilities across the organization. CGI’s Pragma outage and workforce management solutions have played a key role in our strategy to transform our legacy electric power system into an intelligent, integrated and automated smart grid. Both solutions have enabled us to drive operational excellence, while reducing costs and delivering a higher level of customer engagement and satisfaction.” David Thomas, Executive Corporate Technical Consultant, Strategic Systems EPB Chattanooga, Tennessee, United States Helping drive tangible innovation through CGI’s Retail and Consumer Services Center of Excellence “In the retail industry, we hear much about technology, at times just for technology’s sake. But what is showcased here, is close — at least as close as possible — to the real in-store customer experience, and this allows us to visualize how clients can use these solutions and how it improves their experience.” Medhi Zouari, Chief Digital Officer Auchan Lille, France “The customer journey we experienced at the Center of Excellence highlights how technologies can be integrated. I found this extremely interesting.” David Haverlant, Chief Information Officer Auchan Lille, France



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WE LEAD

Risk- and investment-intensive industries Government, health, insurance, oil and gas Within risk- and investment-intensive industries, the urgency to digitally transform is driven by regulation and politics, as well as consumer or citizen demands. In addition, competition from new digital players is hindered by heavy regulation and high levels of required investment. Most organizations are in the digital race, but moving at a slower pace than organizations in other industries. CGI is partnering with them for the long term. Government • CGI has partnered with 2,000+ national, state, provincial and local governments. • CGI solutions have enabled U.S. public sector tax and revenue clients to collect $5 billion+ in additional revenues that otherwise would not have been collected. • Our community policing solution, Burgernet, is a great success in the Netherlands, with 1.5 million+ people participating nationwide. • CGI is part of the European Space Operations Centre team, which guided Rosetta’s Philae probe to land on a comet. • We help clients support NATO’s “Smart Defense” approach through solutions such as a command and control collaboration portal that is interoperable in all NATO structures. Health • Around the world we support 1,000+ health facilities, health plans serving 195 million+ people, and 3 million providers. • CGI CommunityCare360 enables mobility and streamlines care delivery by connecting patients, clinicians, home care workers and first responders. It is used by more 10,000 clinicians and mobile care workers, increasing time dedicated to in-home patients by up to 65%. • CGI ProperPay for reducing claims fraud, waste and abuse has helped payers recover $2.5 billion in lost payments due to improper claims. • 200,000 professionals use our Sovera solution to improve efficiencies in managing 6 billion+ patient records. • CGI’s e-CareLogic Integrated Clinical Electronic Records system integrates with various clinical systems within the hospital and across care settings, building a holistic view of patient data. Mypatient is the mobile version of this solution, providing clinicians with access to results on their mobile devices. • We support 55 million+ Americans served by Medicare.gov, which has been made more accessible and customer-centric with the help of CGI. Insurance • We work with 7 of the top 10 global insurers. • CGI’s Ratabase rating and pricing engine has been successfully implemented for more than 100 P&C and life insurers. Ratabase received top honors from Celent in three of its four award categories in 2016, including Customer Base, Depth of Client Services and Breadth of Functionality, as cited in its report, “North American Rating Engines: 2016 Property & Casualty ABCD Vendor View.” • We provide nearly 16 million risk information reports annually to insurers, brokers and agents.

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2016 ANNUAL REVIEW

• We help insurers enter the world of cyber insurance through end-to-end services and solutions. • We have worked with our top 30 insurance clients as their strategic partner for an average of 16 years. Oil and gas • We are a partner to all oil and gas majors globally, providing services across the value chain, including exploration and production, refining, supply and distribution and B2B/B2C retail. • CGI’s Exploration2Revenue (X2R) Business Suite delivers robust solutions for joint venture, land and production management using mobile, digital and cloud technologies. • CGI systems process 1.5 billion fuel card transactions and manage $100 billion in fuel card payments per year. • 95% of UK oil and gas offshore personnel movements are tracked by CGI’s VantagePoB solution. • We are a cloud services provider for 30 upstream operators, managing more than 700 joint ventures.



Leveraging transformational outsourcing and digital services to drive forward digital transformation “We partnered with CGI in the outsourcing of our life and non-life insurance and administrative application services to boost our operational efficiency and provide even better services to our customers — and, as a result, reduced our application management and development costs and increased productivity. OP also is enhancing the agility of our functions with CGI’s help through the adoption of the scaled agile framework model (SAFe). We chose CGI because of its industry knowledge, scalability and international expertise, in addition to its ability to meet our high standards of service delivery excellence. Our partnership with CGI helps us to continue to take advantage of the new opportunities brought by digitalization so we can continue to be the best financial provider to our customers.” Juho Malmberg, Chief Information Officer OP Financial Group Helsinki, Finland Developing a digital system that improves data insights and patient care “This system has helped us greatly at Helsinki City Rescue Department as it gives us an effective tool for emergency care situations offering the same standard of service to all our patients. On a single emergency care situation it’s beneficial that the patient’s vital data can be measured by a multi-defibrillator and that together with the data entered by paramedics can be viewed in real time at the treating hospital. This allows the ER doctor in charge to easily get a snapshot of the patient’s situation and hence be fully prepared on arrival of the patient. Merlot Medi is one of the main reasons why our patients’ care has improved in recent years.” Kari Porthan, EMS Chief Helsinki City Rescue Department Helsinki, Finland Merlot Medi was developed by CGI with the Hospital District of Helsinki and Uusimaa and Helsinki City Rescue Department.



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WE LEAD

Representative thought leadership PROVIDING INSIGHTS FOR OUR CLIENTS As digital transformation accelerates, CGI provides clients with insights into the latest industry and technology topics most important to their business. Each year, we produce a number of original reports — through our own research and in co-authorship with leading institutions — to capture the current state and the road ahead. These reports, many of which are produced year-over-year, support our clients in informing their priorities and investments. As part of our commitment to being an expert of choice, CGI continuously works to provide thought leadership that addresses common challenges or opportunities facing our clients and proposing sound and successful solutions. Representative research for 2016 includes: Global

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In 2016, we met in-person with 1,000+ business and technology leaders across 10 industries and 20 countries to discuss trends, challenges and priorities. The resulting insights formed the CGI Global 1000 outlook, which shares the trends impacting clients’ organizations and how they plan to address the challenges and opportunities through their business and technology priorities and plans.

CGI surveyed 1,670 bank consumers in 2016 to learn about their digital banking preferences and the implications for our bank clients. The CGI report, FinTech Disruption in Financial Services, confirms that consumers want digital services from their current financial institutions.

Since 2012, CGI has partnered with GTNews to conduct a global transaction banking survey that assesses the perspectives of both corporates and their banks. The 2016 Transaction Banking Survey: Report of Survey Insights examines the relationship between corporates and banks, what banks see as their biggest barriers to growth, and how the implementation of the revised Payment Services Directive (PSD2) has had an impact on the industry.

CGI’s Data to Diamonds book discusses in detail the transformation of data into value-driving products, services and insights. Authored by CGI’s global digital insight experts, the 2016 edition points the way forward for businesses and government organizations looking to build stronger customer relationships, improve operations and generate new sources of revenue.

2016 ANNUAL REVIEW

France

Nordics

The 2016 edition of Baromètre is based upon the insights gained from CGI’s Voice of Our Clients program’s face-to-face interviews with our clients in France. It highlights the digital innovations, challenges and priorities of the French market.

For the 2016 CGI Nordic Citizen Survey, CGI surveyed 2,000 people aged 16-30 years across the Nordics to assess their expectations and preferences for digital services in the public sector. The report shares knowledge of these citizens’ digital lives and their willingness to engage with public services, and provides recommendations for how public organizations can make the most of this situation.

United Kingdom

United States

In the 2016 report, Cyber Security in the Boardroom: UK plc at Risk, CGI, in conjunction with the Centre for Economics and Business Research, surveyed 150 business leaders from the UK’s largest commercial companies. The resulting report offers insight into how UK boardrooms prioritize, govern and invest in cybersecurity.

The CGI-Governing Institute Guide to Cybersecurity as Risk Management: The Role of Elected Officials helps elected officials effectively combat cyber risks through assessing, identifying, analyzing and managing risks to the government enterprise. It spells out cyber risks and provides information to help public officials fulfill their responsibilities and safeguard their communities.

CGI also maintains a series of global and country-level blog channels that cover top industry and technology topics. Discover our latest thinking at cgi.com/blogs.

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We deliver.

Building on a foundation of operational excellence CGI clients want consistency of service wherever they engage us, whenever they engage us. In 2016, we continued our outstanding track record of on-time, within‑budget delivery as a result of our passion for excellence and alignment with the ISO-certified CGI Management Foundation. This Foundation gives us a common business language, standards and frameworks to conduct all operations consistently across the globe, with a focus on continuous improvement.

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2016 ANNUAL REVIEW

HOLISTIC APPROACH Helping clients transform to become digital organizations end-to-end The CGI Global 1000 outlook reveals that our client executives are challenged to balance investments in running the business and those needed to change the business. With more than 40 years of experience, we have put in place the key building blocks to help clients succeed in a holistic manner at every point along their digital journeys: • End-to-end services equip us to work with clients to design, build, secure and operate for their digital future • Strong foundation enables us to deliver in a consistent and successful manner around the world • Client proximity model co-locates our members with our clients, fostering and delivering innovation from the “shop floor” • Enabling solutions help accelerate our clients’ digital transformation through CGI’s intellectual property, global delivery network, methodologies and strategic partnerships • Talented professionals bring expertise and these capabilities to our clients each day

CASE STUDY

California Franchise Tax Board

Increasing revenue, transparency and taxpayer service Government agencies are optimizing business processes and modernizing their IT environments to free up resources for transformational programs. A case in point is the California Franchise Tax Board (FTB). As the second largest U.S. tax agency after the Internal Revenue Service, FTB handles 20 million tax returns and 80 million website visits each year. Since 2011, FTB has partnered with CGI to modernize its tax systems through the Enterprise-Data-to-Revenue (EDR) project. It is one of the largest IT projects for the State, touching nearly every taxpayer in California. The EDR project has successfully addressed business problems FTB hired CGI to achieve, including: • Data availability: Returns are now corrected, payments and taxpayers are properly identified, more fraud goes detected, and cases are properly prioritized and assigned the most effective strategy and resources because more data is now available, shared and less costly to maintain. • Filing business processes: Returns take less overall time to process, business changes take a shorter time to implement, data is captured, returns are corrected and performance can be monitored because return filing processes have been updated. • System redundancy and reuse: Systems and functionality are less costly to develop and maintain because they are no longer redundant, have a common technology platform and are integrated. • Filing self-services: Taxpayer self-services are no longer limited due to outdated technologies and limited security. • Data analysis: Noncompliance discovery and fraud detection, tracking and prevention are improved through state‑of-the-art enterprise modeling. EDR is a continuous digitization project that replaces manual paper processes and uses leading data and analytics techniques to enable FTB to administer the tax system more effectively. It provides a common view of information to improve transparency and citizen service. To date, EDR revenue increases have exceeded targets, realizing $2.8 billion as of October 2016 and hitting its goal for the entire project early. As a performance-based, benefits-funded project, CGI services are paid from state revenue generated.



The EDR project success is not a fluke. The CGI team has been successful due to strengths in five key areas. These include planning and phasing the project; effective processes, including risk management; teaming with the FTB staff; use of modern technology tools; and optimizing the solution for success and taxpayer needs. Cathy Cleek, Chief Information Officer California Franchise Tax Board Sacramento, California, United States



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WE DELIVER

2016 new business and renewal highlights Digital technologies are changing fundamentally how our clients operate and innovate. Throughout 2016, CGI began, extended and renewed client partnerships at all phases of their digital journeys, as reported in these sample media announcements:



Transport giant DB Schenker expands outsourcing agreement with CGI to cover more mission-critical applications “It is extremely important to us that we have an IT partner that understands our business and can meet our need for modern, efficient and business-critical IT support.” Tina Rundström, Senior Vice-President IT Sweden, DB Schenker, Gothenburg, Sweden ELEXON contracts CGI for three-year £20m business processing and IT outsourcing agreement “This outsourced agreement with CGI provides significant expertise, capability and a modern, scalable infrastructure at highly competitive rates. We will save over £1 million annually in our fixed IT running costs, which is great news for our customers and demonstrates ELEXON’s ability to continue to deliver value for money to the industry.” Mark Bygraves, CEO, ELEXON, London, United Kingdom Scottish Borders Council awards long-term £92 million outsourced digital services contract to CGI “This is a landmark deal for the Scottish Borders as we join forces with one of the leading IT companies in the world to offer a once in a generation transformational opportunity for the region.” David Parker, Scottish Borders Council Leader, Scotland, United Kingdom SNC‑Lavalin and CGI sign IT outsourcing agreement “The agreement will yield an average annual savings of 20% in terms of our IT operating costs for the duration of the contract. This will enable us to reinvest to improve our competitiveness in the global engineering and construction marketplace. It is the first of many business improvement initiatives that will be completed as part of our Operational Excellence approach, which we launched at the end of March. Designed to improve our efficiency and execution, it will enable us to focus on what we do best — leveraging our global engineering and construction expertise to deliver on our clients’ specific needs.” Neil Bruce, President and Chief Executive Officer, SNC‑Lavalin, Montréal, Canada CGI enters into 10-year modernization agreement with Sears Canada “CGI’s long-term commitment, hands-on approach, and the alignment of the agreement with Sears Canada’s goals made CGI an ideal partner to provide technology support and services for our current platform.” Becky Penrice, Executive Vice-President and Chief Operating Officer, Sears Canada Inc., Toronto, Canada CGI signs eight-year contract with La Banque Postale “We’ve worked together for 12 years now, and CGI’s teams know how to organize and assist us to ensure that our major transformation projects are successful by helping us achieve greater flexibility for financing some of our key investments.” Patrick Renouvin, Chief Information Officer, La Banque Postale and Réseau La Poste, Paris, France DCNS entrusts CGI with its technology support “The approach proposed by CGI ensures a more appropriate allocation of our resources and an application support model focused much more on prevention and user satisfaction. Under the agreement, our partner is also committed to helping us achieve our overall performance objectives on a day-to-day basis. And, with its global presence, CGI is the ideal partner to help us achieve our ambitions by providing efficient, agile support for our international development strategy.” Michèle Fouchard, Chief Information Officer, DCNS, Brest, France Hydro Tasmania extends 15-year relationship with CGI “Tasmania has the competitive advantage of being the nation’s renewable energy powerhouse, but it is important for us to manage risks and improve efficiencies in the highly competitive National Electricity Market given the current challenges facing the industry across the country. To date, our partnership with CGI has enabled us to focus on our core business and position us well for leaner financial times ahead.” Luke Stow, Chief Information Officer, Hydro Tasmania, Melbourne, Australia

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2016 ANNUAL REVIEW CGI realizes cross-channel e-commerce solution for mobilcom-debitel “Our new e-commerce platform is the foundation for the further digitalization of our business model. With CGI, we have a partner that optimally supports us because they understand our organization and business requirements.” Florian Wolf, Head of IT Customer & Commerce Systems, mobilcom-debitel, Berlin, Germany Awards recognize CGI as top tech integrator in government: Engagements in California and Kentucky earn Center for Digital Government honors “From the first meeting, CGI performed as a true partner and collaborated with the City to establish a unified and cohesive City-CGI team. Our partnership on this innovative performance budgeting solution is putting the multiple benefits of centralization, standardization and automation to work for the City of Los Angeles. We are pleased to see the company receive this prestigious honor.” Ben Ceja, Assistant City Administrative Officer, City of Los Angeles, California, United States “CGI not only provided an offering that addressed the Commonwealth’s challenges, but also brought the staff and expertise required to deliver the project within budget and on schedule. Congratulations to CGI for this recognition as a best fit integrator. Working together, we are realizing DOR’s vision of improved citizen service and increased revenue recovery.” Mark Gillim, Executive Director of the Office of Processing and Enforcement, Kentucky Department of Revenue, Frankfort, Kentucky, United States



DIGITAL EXPERTISE Strategy and technology to create digitally connected enterprises

As an expert of choice, CGI helps clients maximize the benefits of digital technology identified in our CGI Global 1000 outlook as key enablers of transformation. Today, we partner with our clients to support their most strategic and visible initiatives to innovate and secure their mission-critical technology. The combination of listening, innovating and leading ensures operational excellence in delivering on-target solutions for our clients. CGI’s enablers of digital transformation Enterprise transformation • digital strategy and roadmap • human capital strategy • technology strategy and architecture Customer-centric business transformation • customer experience • innovation and collaboration • digital first customer • customer value People, process and technology transformation • digital insights • digital employee • intelligent automation • Internet of Things • SaaS • digital BPS IT operating model transformation • IT modernization • transformational outsourcing • cybersecurity • agile and DevOps • hybrid IT/cloud

CGI Global 1000 client insights

72%

identified overcoming internal resistance to embedding a digital-first culture as the top barrier to implementing digital transformation

62%

rated improve customer/citizen experience as their top business priority

76%

plan to increase or maintain investment in changing their organizations including new digital services

75%

cited rationalizing and modernizing IT to reduce costs as their top IT priority

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WE DELIVER

BEST-FIT DELIVERY Providing local accountability and global delivery CGI’s best-fit delivery model combines the deep talent pool of our extensive global delivery network with locally based teams to deliver competitive services that are highly responsive to client needs. Our client proximity model empowers local teams to develop strong client relationships and gain deep knowledge of our clients’ industries and businesses, as well as be firmly rooted in our clients’ markets and communities. These teams are backed by a comprehensive global delivery network of onshore, nearshore and offshore delivery technology and industry experts who operate seamlessly to provide consistent, high-value results.

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CGI is ranked as a “Leader” on The 2016 Global Outsourcing 100® of the International Association of Outsourcing Professionals® giving CGI “Sustained Excellence” status for having made the GO100 list for 5 consecutive years.

2016 ANNUAL REVIEW

2016 highlights Global delivery CGI enhanced our global delivery capabilities and celebrated milestones and recognition, including: • Marking 10 years of service from centers in Prague, Czech Republic, and Lebanon, Virginia, United States • Receiving the “Innovation and New Market” award from the Chamber of Commerce and Industry of Shawinigan in recognition of CGI’s Shawinigan Center of Excellence in Quebec, Canada • Dedicating our 50,000 square foot center in Lafayette, Louisiana, United States “CGI’s arrival in Louisiana has helped elevate our state’s status as a leading destination for knowledge-based employers and the creative professionals who help them thrive.” John Bel Edwards, Governor of Louisiana (from May 17, 2016, media announcement on the dedication) • Hiring 500 members in South Wales, United Kingdom, where our team has been awarded both 5-Star Service Desk Certification from the Service Desk Institute (SDI) and Transformation Project of the Year at the DataCenterDynamics EMEA Awards “CGI is one of our Anchor Companies and I am delighted to hear it has already created hundreds of jobs well ahead of schedule.” Edwina Hart, former Minister of Business, Enterprise, Technology and Science, South Wales (from March 31, 2016, media announcement to mark the milestone)

Specialized expertise • A Digital Transformation — Industrialization and Innovation Center of Excellence was established jointly in Montpellier and Toulouse, France, to drive forward clients’ digital transformation with the latest innovations in social, mobility, analytics, cloud and security (SMACS). • Cybersecurity centers were opened in Finland, France, the Netherlands and the U.S., adding to our global network of security operations centers (SOCs) and security capabilities.

Adding to our team CGI is committed to being a consolidator in the industry. We target firms identified by clients as partners of choice through the CGI Global 1000 insights to augment our metro market footprint and industry and digital capabilities. In 2016, key acquisitions included: • Alcyane in Paris, providing consulting and applications services with an emphasis on investment banking to financial institutions in France and globally • Collaborative Consulting in Boston, providing IT and consulting services capabilities throughout New England in areas such as business process and program management; IT strategy, performance and quality services; and end-to-end digital solutions • JSL in Toronto, with deep relationships in Canada’s banks and strong capabilities in high-end IT consulting, including agile development

Spotlight on Asia-Pacific In 2016, CGI’s Asia-Pacific delivery centers continued to expand their capabilities and grew by more than 20% to meet ever-growing demand from CGI clients. Solution architects and other experts from these centers play an integral role in working with our client-facing metro market teams to develop best-fit solutions for our clients. Key focus areas include: • Information technology with vertical industry specialization • Card-based systems • Voice-based services and business process services

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GLOBAL FOOTPRINT

A strong local presence in hundreds of communities around the world

Juneau

CANADA

Edmonton Markham Mississauga Toronto

Saskatoon Calgary

Regina

Vancouver

Victoria

Saguenay Seattle

Québec City Stratford Shawinigan Fredericton Montréal Moncton Ottawa Sherbrooke Halifax Waterville St. Albans City

Olympia Minneapolis

UNITED STATES OF AMERICA

Wausau

Lansing Chicago

Fairview Heights

Louisville Frankfort

Oklahoma City Los Angeles San Diego

Lawton Phoenix

Hot Springs

Huntsville

Lebanon

Greenville Atlanta

Tempe

Tucson

Hartford Gales Ferry Jersey City New York City Philadelphia Trenton Athens

Columbus

Sacramento Oakland

Buffalo

Boston Burlington Mansfield Wilmington

Cleveland Pittsburgh

Denver Aurora Lakewood San Francisco

Somersworth Portsmouth Albany

Detroit

Birmingham Fort Worth Dallas El Paso Troy San Angelo Belton Sierra Vista Lafayette Austin Houston New Orleans San Antonio Tampa

Durham Fayetteville Columbia Charleston Orange Park

Miami

Annapolis Junction Baltimore Fairfax Lexington Park Manassas Newport News Norfolk Richmond Sterling Washington, D.C.

Americas

San Juan

Honolulu

PUERTO RICO

BRAZIL

São Paulo

cgi.com/offices

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Mogi das Cruzes

2016 ANNUAL REVIEW

Kiruna

Europe

FINLAND

Gällivare Tornio

SWEDEN Luleå

Oulu

Skellefteå Umeå Örnsköldsvik Östersund Sundsvall

NORWAY

Vaasa Kuopio Härnösand Jyväskylä Joensuu Mikkeli Lappeenranta

Pori Gävle

Haugesund Stavanger Aberdeen

UNITED KINGDOM

Tønsberg

Didsbury St Asaph

Turku Västerås Stockholm

Tallinn

Aalborg

Malmö Arnhem Eindhoven Groningen Hoofddorp Maastricht Rotterdam

Hamburg

BELGIUM LUXEMBOURG

Berlin

POLAND Warsaw

GERMANY Wroclaw CZECH REPUBLIC

Rennes Le Mans Brest Orléans Nantes

Prague Krakow Brno Ostrava

Munich

Bertrange

Bratislava

Bremen Darmstadt Düsseldorf Erfurt Karlsruhe Köln Leinfelden-Echterdingen Mannheim Sulzbach Wolfsburg

Niort Limoges Lyon Clermont-Ferrand Grenoble Bordeaux Nice Toulouse ITALY Pau Montpellier Aix-en-Provence Frascati

SPAIN Madrid

PORTUGAL Lisbon Odivelas Sacavém Sintra

Espoo Helsinki Hämeenlinna Kouvola Lahti Riihimäki Tampere

Brussels

SLOVAKIA

FRANCE

Porto

Bromölla Eskilstuna Göteborg Jönköping Kalmar Karlskrona Karlstad Linköping Norrköping Örebro Oskarshamn Skara

DENMARK

NETHERLANDS

Bridgend

ESTONIA

Tartu

Herning Aarhus Edinburgh Copenhagen Newtown St Boswells Kolding Newcastle

Glasgow

Birmingham Bristol Chelmsford Gloucester Leatherhead London Milton Keynes Reading

Borlänge

Oslo Sarpsborg

Amiens Lille Paris Saint-Denis Strasbourg

Málaga

Rabat Casablanca

MOROCCO

INDIA Mumbai Hyderabad Bangalore

Manila

Chennai

PHILIPPINES

Kuala Lumpur

MALAYSIA

AUSTRALIA Brisbane

Sydney

Asia Pacific

Melbourne

Hobart

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LEADERSHIP TEAM

CGI’s leadership team Corporate services Serge Godin Founder and Executive Chairman of the Board

George D. Schindler President and Chief Executive Officer

Julie Godin Vice-Chair of the Board, Chief Planning and Administration Officer Stuart A. Forman Senior VP, Global Chief Information Officer

Luc Pinard Executive VP, Corporate Performance

Bernard Labelle Senior VP, Global Human Resources

Stanley L. Sims VP, Chief Security Officer

FRANCE, LUXEMBOURG AND MOROCCO

Global operations ASIA PACIFIC

CANADA

EASTERN, CENTRAL AND SOUTHERN EUROPE

Colin Holgate President

Mark Boyajian President

Doug McCuaig President

Jean-Michel Baticle President

Rakesh Aerath Multi-Industry and Government Delivery Center, India

Réjean Bernard Global Technology Operations

Ron de Mos Netherlands

Philippe Bouron Business Consulting

Christian G. Brosseau Greater Montréal Financial Services

José Carlos Gonçalves Southern Europe and Brazil

Fabien Debû East

Dariusz Gorzeń Poland

Laurent Gerin Innovation Center of Excellence

Mark Aston South East Asia Robert Dewar Australia Vinayak Hegde Financial Services Delivery Center, India George Mattackal Communication and Enterprise Services Delivery Center, India Sridhar Ramamurthy Global Technology Operations Delivery Center, India Sudhir Subbaraman Solutions Delivery Center, India

Chantal Buteau Québec City Lisa Carroll National Capital Region Shawn R. Derby Western Canada Michael Godin Greater Montréal Commercial and Public Services Marie T. MacDonald Greater Toronto Commercial and Public Services Jay Maclsaac Atlantic Canada Peter Sweers Greater Toronto Banking and Global Wealth

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Torsten Straß Germany Štefan Szabó Czech Republic, Slovakia and Eastern Europe Frank van Nistelrooij Services to Shell Ben Vicca Belgium

Stéphane Jaubert Consumer Packaged Goods Retail and Manufacturing David Kirchhoffer Financial Services Daniel Lecerf North Gilles Le Franc West Michel Malhomme Global Delivery Center Pierre-Dominique Martin Transportation, Public Sector and Human Resources Sassan Mohseni Energy and Utilities, Telecommunications

2016 ANNUAL REVIEW

François Boulanger Executive VP, Chief Financial Officer Kevin Linder Senior VP, Corporate Controller

Steve Perron Senior VP, Finance and Treasury

Guy Vigeant Senior VP, Mergers and Acquisitions

Benoit Dubé Executive VP, Chief Legal Officer and Corporate Secretary

Lorne Gorber Executive VP, Global Communications and Investor Relations

Tim Gregory Executive VP, Business Engineering, Marketing and IP Strategy

NORDICS

UNITED KINGDOM

UNITED STATES

Heikki Nikku President

Steve Thorn President

David L. Henderson President

Pär Fors Sweden

David Fitzpatrick Global Technology Operations

Lynne Bushey Mid-Atlantic

Tim Hurlebaus President, CGI Federal

Tom Hauge Norway

Matthew Grisoni Oil, Gas and Consumer Services

Dave Delgado West

Patrick Dougherty Defense Programs

Ned Hammond Global Technology Operations and Onshore Delivery

Candice Ling Regulatory Agency Programs

Leena-Mari Lähteenmaa Global Technology Operations Martin Petersen Denmark Tapio Volanen Finland and Estonia

Michael Herron Health, Local Public Services and Scotland Elwyn Jones Central Government and Justice

Christopher James Industry Solutions Bill Robichaud New England

Tara McGeehan Energy, Utilities and Telecommunications

John Roggemann Central

Neil Sadler Banking and Financial Markets

Vijay Srinivasan South

Steve Smart Space, Defence, National and Cyber Security

Steven Starace East

Stephanie Mango Security, Administrative, Judicial and Enforcement Dave Ralston Government Secure Solutions, CGI Inc. George Strader Health Compliance Programs Kenyon Wells International Diplomacy, Assistance and Commerce

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OUR STRONG FOUNDATION

The CGI Constitution While most companies have a vision and mission, CGI goes a step beyond. We have a company dream, which emphasizes the enjoyment and ownership principles essential to our success. The CGI Dream, together with our vision, mission and values, make up the CGI Constitution. With frameworks and programs founded upon this Constitution, CGI provides for the consistent growth that benefits our clients, members and shareholders.

Our dream To create an environment in which we enjoy working together and, as owners, contribute to building a company we can be proud of.

Our vision

Our mission

To be a global world class information technology and business process services leader helping our clients succeed.

To help our clients succeed through outstanding quality, competence and objectivity, providing thought leadership and delivering the best services and solutions to fully satisfy client objectives in information technology, business processes and management. In all we do, we foster a culture of partnership, intrapreneurship, teamwork and integrity, building a global world class information technology and business process services company.

Our values PARTNERSHIP AND QUALITY

RESPECT

For us, partnership and quality are both a philosophy and a way of life. We constantly deepen our understanding of our clients’ business and we develop and follow the best management practices. We entrench these approaches into client relationship and service delivery frameworks in order to foster long term and strong partnerships with our clients. We listen to our clients and we are committed to their total satisfaction in everything we do.

In all we do, we are respectful of our fellow members, clients, business partners and competitors. As a global company, we recognize the richness that diversity brings to the company and welcome this diversity while embracing the overall CGI business culture.

OBJECTIVITY AND INTEGRITY We exercise the highest degree of independent thinking in selecting the products, services and solutions we recommend to clients. In doing so, we adhere to the highest values of quality, objectivity and integrity. We do not accept any remuneration from suppliers. We always act honestly and ethically. We never seek to gain undue advantages and we avoid conflicts of interest, whether real or perceived. INTRAPRENEURSHIP AND SHARING Our collective success is based on our competence, commitment and enthusiasm. We promote a culture of innovation and initiative where we are empowered with a sense of ownership in supporting clients, thus ensuring our profitable growth. Through teamwork, sharing our know-how and expertise across our global operations, we bring the best of CGI to our clients. As members, we share in the value we create through equity ownership and profit participation.

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FINANCIAL STRENGTH We strive to deliver strong, consistent financial performance which sustains long term growth and benefits both members and shareholders. Financial strength enables us to continuously invest in our members’ capabilities, our services and our business solutions to the benefit of our clients. To this end, we manage our business to generate industry superior returns. CORPORATE SOCIAL RESPONSIBILITY Our business model is designed to ensure that we are close to our clients and communities. As members, we embrace our social responsibilities and contribute to the continuous development of the communities in which we live and work.

2016 ANNUAL REVIEW

I S O 9 0 0 1 C E R T I F I E D O P E R A T I O N S

CGI Constitution

Dream Vision

Code of Ethics

Mission Values

Strategic Directions and Plans

Human Resources Policies

Corporate and Operations Governance

Organizational Model and Adjustments

Business Unit Processes Client Relationship and Business Development

Assignment and Recruitment

Managing for Excellence

Proposal

Contract

Technology Management

© 2016 CGI Group Inc.

Engagement Governance

Application Management

Engagement Risk Management

Business Development Health Check

Delivery

Consulting, System Integration and Development

Client Satisfaction Assessment Program

Quality Policy Management Frameworks

Corporate Processes Business Unit Performance Review

Client Partnership Management Framework IT Management Best Practices

Security Policies

Financial Policies

Member Partnership Management Framework

Closing

Business Process Management

Innovation, IP and Efficiency Investments



Integration



Team meetings



Performance management & career planning



Leadership Institute

Member Satisfaction Assessment Program

Financial Management

Shareholder Partnership Management Framework •

Relationship management



Disclosure guidelines



Communications

Shareholder Satisfaction Assessment Program

The CGI Management Foundation At CGI, we are committed to being the best in our industry. To be the best, we need to operate as the best, and the CGI Management Foundation includes the key elements that define and guide the management of our company, including the CGI Constitution and our common policies, frameworks, processes, operational principles and measures. The Foundation encompasses the best practices that enable us to deliver in a consistent and successful manner no matter where CGI operates around the world.

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CORPORATE SOCIAL RESPONSIBILITY Working together to build stronger communities Corporate social responsibility (CSR) is a key part of CGI’s day-to-day operations. Everything we do — from delivering sustainable services and solutions to donating our time and talents to strengthen our communities — ties back to the communities in which we, and our clients, live and work. At CGI, our focus is to work together with our stakeholders and our communities to make a difference in the world around us. CGI renewed listings and was included within top CSR indices that cover sustainability-driven companies worldwide, including RobecoSAM and S&P Dow Jones Sustainability Indices, MSCI and ECPI. CGI is also a constituent of the FTSE4Good Index Series.

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2016 ANNUAL REVIEW

PARTNERING FOR GOOD CGI at work in our communities CGI professionals are passionate about the communities in which we live and work. We take the skills required to be a leading IT services company — problem solving, creativity and collaboration — and put them to work to make a positive difference. Through volunteer and pro-bono initiatives and financial investments, we are committed to contributing to those causes that benefit the well-being of our communities.

2016 highlights Hacking for good CGI members from around the world combine technology expertise and an innovative mindset to participate in “hackathon” events aimed at generating new ideas and solving problems for clients and their communities. Here are examples of how we hacked for good this year: • Digital Lifestyle — CGI members in Düsseldorf, Germany, participated in a 24 hour in-office hackathon, where teams brainstormed ideas to bring digital transformation to life. The winning idea was a solution called Smarking — a smart parking solution for cities — to help residents find street parking in congested areas and enable cities to increase the efficiency of parking enforcement and capacity planning. • Earth Day Hackathon — The U.S. General Services Administration hosted an event to encourage teams of government employees, students and industry professionals to develop eco-friendly technology ideas. One of the four winning teams included CGI members who created a climate change indicator map for the Environmental Protection Agency.

Members in Düsseldorf, Germany, spent a weekend participating in a 24-hour in-office hackathon to brainstorm ideas to bring digital transformation to life.

• Ministry of Justice (MoJ) Hackathon — Members from across the United Kingdom participated in the first ever MoJ Hackathon to help the MoJ enable the courts to deliver justice more swiftly, offer better rehabilitation to offenders nationwide, and reduce the risk to the Legal Aid fund. • Steel City Codefest — This annual citywide event brings together volunteers to develop applications for local organizations in Pittsburgh, Pennsylvania (United States). In 2016, CGI members developed an app for the Children’s Museum of Pittsburgh to help improve the visitor experience, and another for the Allegheny Children’s Initiative to make data collection for families easier and more reliable. Research for resilient communities

Members from across the United Kingdom attended the first ever Ministry of Justice (MoJ) Hackathon.

To support building strong and healthy communities, CGI works with clients and organizations to study issues and present recommendations for driving a more sustainable future. Here are examples of research we conducted this year: • “Better business” — CGI supported a groundbreaking study conducted by Social Value Lab to analyze business, CSR and reporting practices among Scotland’s 500 leading companies. The study found emerging business leaders and the public at large are ethically motivated and less tolerant of corporate negligence and corrupt practices. It offered practical recommendations to encourage more responsible and progressive business practices. • “Identifying and analyzing digital payment flows regarding illegal purposes on the Internet” — In Sweden, CGI is part of a coalition of financial institutions and NGOs that collaborate to prevent payments related to the sexual abuse of children. This year, CGI supported a master thesis at Linköping University that studied unexplored illegal exploitation of legal businesses, with the purpose of limiting this market and especially the related transactions. • “Partnering with the Leaders of Tomorrow” — Every year in France, CGI partners with leading universities to mentor students and work with them in carrying out meaningful projects. This year, CGI and the CentraleSupélec engineering school joined forces to explore millennials’ views on the future of digital. By understanding and anticipating this generation’s expectations, French decision-makers in both the public and private sectors can better understand and anticipate this group’s expectations and needs.

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CORPORATE SOCIAL RESPONSIBILITY

CGI leaders in the United Kingdom participated in 40 different fundraising events to raise money for the Prince’s Trust.

Dedicating our time and talents Across our global operations, CGI members work together with charities and community organizations to support needed causes. Here are examples of community service initiatives from the year: • Driving technology education — CGI serves as the digital partner for the TEKNIK project in France, which mobilizes companies to educate young students on key industries and help them discover promising careers. CGI is working to create a positive perception among young people of the digital industry and promote it as one of the most dynamic and largest job providers in France. • Empowering rural education — CGI members began working with the Swami Vivekananda Adivasi Ashram Shala residential school outside of Mumbai, India, to help provide the underprivileged students with the basic necessities of life and tools to thrive in modern society. Nearly each month, CGI hosts an initiative to support the school, including providing medical treatment for the children, teaching spoken English and offering career guidance. • Partnering with the Prince’s Trust — This past year, both CGI and the Prince’s Trust celebrated their 40th anniversaries. A leading charity in the United Kingdom, the Prince’s Trust helps 13 to 30 year olds who are unemployed or struggling at school to transform their lives. To commemorate the joint milestones, CGI’s members engaged in 40 different ways to dedicate their time and talents to the charity and raised more than £50,000 for the organization. • The Ride to Conquer Cancer — CGI members in Quebec, Canada, once again participated in the two-day Enbridge Ride to Conquer Cancer to raise money for cancer research and treatment. The CGI cyclists collected more than $63,000 with the help of CGI-matched donations. CGI’s five-year total contribution to the organization now exceeds $500,000.

DRIVING SUSTAINABILITY Services and solutions that benefit clients and society Across industries, we partner with clients to deliver solutions that support energy and environmental sustainability, make cities smarter and improve the lives of citizens, protect the welfare of children and more. Here are examples of our innovative sustainability services and solutions: Smart utilities • Smart grids: In collaboration with Smart Society Services, CGI developed the Open Smart Grid Platform (OSGP) that uses Internet of Things (IoT) technology to integrate applications and link them to smart devices not only for utilities, but also for critical infrastructures such as roads and railways. The platform supports energy conservation solutions for public lighting, smart metering, energy distribution automation and more. • Smart meters: CGI is playing a key role in the rollout of 53 million smart meters in the UK between 2015 and 2020, one of the largest rollouts of smart meters in the world. We’re designing, developing and implementing the technology solutions required to support the rollout and ensure its success. • Renewable energy: Our Renewables Management System (RMS) solution controls more than 7,000 turbines on 600 wind farms in 9 countries across the globe. Our clients, including Energias de Portugal Renewables (EDPR), the third largest wind energy producer in the world, use RMS for remote farm control, decreased downtime and maintenance costs, immediate connection to the grid, and more.

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2016 ANNUAL REVIEW Environmental protection • Driver performance: CGI’s BestDriver mobile app helps transportation and logistics companies improve driving performance by combining big data analytics with gamification. The end result is reduced fuel consumption and carbon emissions, and improved safety and cost-efficiencies. • Hazardous materials: CGI’s ProSteward360 solution provides for the safe handling of hazardous chemicals. In use in 100+ countries, the solution effectively manages chemical data, increases product safety and supports global regulatory compliance. • Regulatory management: CGI Advantage Regulatory Management helps agencies improve a wide range of regulatory functions, such as permitting, licensing and inspections, and provides constituents with self-service capabilities. • Disaster recovery: In partnership with the New Jersey Department of Community Affairs, CGI developed the Sandy Integrated Recovery Operations and Management System (SIROMS) to manage the distribution of federal funds in support of Superstorm Sandy recovery efforts. Smart cities • Public spaces: CGI’s IBOR is an IoT-based solution that enables cities to remotely control public assets such as traffic lights to increase public safety, decrease energy consumption and reduce CO2 emissions. • Community policing: Working with the Dutch police, CGI developed a mobile application that allows Dutch citizens to report suspicious activities to police, as well as receive crime and other security alerts. • Emergency response: CGI developed an innovative emergency response system for Estonia’s Ministry of the Interior that uses digital technologies to enable faster emergency response, better information sharing, and improved decision-making. • Patient-centered care: Using the latest digital technologies, CGI CommunityCare360 connects patients, primary care physicians, case coordinators, first responders and other healthcare workers to provide patientcentric care, whenever and wherever it’s needed. Child welfare • Child safety: More than 35,000 case workers across the U.S. depend on CGI-implemented State-wide Automated Child Welfare Information Systems (SACWIS) every day to protect the safety of children. • Exploitation: CGI is deeply involved with the Swedish Financial Coalition and NGOs in using technology, including the development of an innovative payment solution, to prevent payments related to the sexual abuse of children. PROJECT SPOTLIGHT

Minimizing the impact of Hurricane Matthew for utility clients and their customers Utility companies were bracing for widespread outages as Hurricane Matthew wreaked havoc on the East Coast of the United States in October 2016. With persistent tropical force winds and potential damage from storm surge and seawater incursion, Hurricane Matthew presented a serious test to utilities and their mission-critical systems. With Florida home to several CGI utility clients operating our Pragma portfolio of outage, network and mobile workforce management solutions, we took a proactive approach to ensuring our clients were prepared to manage the incoming surge of outages and hazardous incidents as a result of Matthew’s impact. CGI provided onsite resources who offered critical technical support to safeguard system stability and help maintain business continuity during the actual storm response process, as well as the restoration efforts that followed. This work helped to increase safety and minimize downtime for the communities our clients serve.



Our name, OUC–The Reliable One, demonstrates our commitment to being one of the most reliable utilities in the nation every day. So when we wanted to upgrade our Outage Management System (OMS), we recently chose CGI for a major update to our advanced digital metering and computer-aided dispatch systems. We appreciate that CGI went above and beyond to come to Orlando before the impact of Hurricane Matthew. This helped ensure our team had the support they needed to restore power to our customers as quickly and safely as possible. Clint Bullock, Vice-President of Electric & Water Delivery Orlando Utilities Commission (OUC–The Reliable One) Orlando, Florida, United States



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CORPORATE SOCIAL RESPONSIBILITY

DREAM CONNECTORS Making a difference in our communities around the world In 2016, in commemoration of CGI’s 40th anniversary, we launched the CGI Dream Connectors program to deepen our commitment to serving our communities. In this inaugural year, after a company-wide vote, seven projects — one from each of CGI’s Strategic Business Units — were selected to receive CGI support, which includes access to IT, facilities and funding, as well as the strength of thousands of member volunteers.

2016 Dream Connectors projects ASIA PACIFIC

NORDICS

Providing Education and Sports Facilities for Children at Gowdihalli Village Primary School CGI is working to help raise the literacy rate in the Gowdihalli Village Primary School and nearby villages in India by improving access to education and school supplies.

Helping Hand App — Digital Volunteering Center CGI members are developing an app to help the Finnish Association for Mental Health match volunteers to people in need.

CANADA Habitat for Humanity (HFH) CGI professionals are helping HFH to develop an e-commerce solution to connect with the community on a larger scale and to better coordinate donations across chapters. EASTERN, CENTRAL AND SOUTHERN EUROPE CGI Mimar Project In Portugal, CGI is helping the Mimar youth shelter build a database and an application to organize its services and information, and is sponsoring much-needed repairs and enhancements to its facilities. FRANCE, LUXEMBOURG AND MOROCCO RéZo City RéZo City, a non-profit organization that provides career development tools and guidance to young job seekers, is teaming with CGI volunteers to provide instructional classes and one-on-one training sessions on IT topics.

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UNITED KINGDOM Fighting cybercrime CGI members in the UK are taking a stand against cybercrime by supporting the Cyber Made Simple initiative, which teaches positive online behaviors to children and parents. UNITED STATES CGI STEM Camp CGI is offering CGI STEM (Science, Technology, Engineering and Math) camps in five office locations across the country to provide students with valuable IT and networking skills. Learn more about the program and projects at cgi.com/dream-connectors.

CGI GLOBAL 1000 Sharing the voice of our clients and CGI insights There has never been a more extraordinary opportunity to transform how organizations create value for their stakeholders, and central to this opportunity is the role of technology. To best understand the disruptive forces at work in today’s digital world and how technology can drive transformation, CGI conducts annual in-person conversations with business and technology executives to listen to and discuss their challenges and priorities What emerge from these meetings are practical insights — based on quantitative and qualitative data — that shape future strategies, both for participants and for CGI. For many years, we shared the findings and insights from these conversations with those who participated. This year, for the first time, we’ve also published a full report — the 2016–2017 CGI Global 1000 outlook. Request your copy at cgi.com/global1000.

Founded in 1976, CGI is one of the largest IT and business process services providers in the world. With 68,000 professionals operating in hundreds of locations around the globe, CGI helps clients become customer-centric digital organizations. We deliver high-quality business consulting, systems integration and transformational outsourcing services, complemented by more than 150 IP-based solutions, to support clients in transforming into digital enterprises end-to-end. CGI works with clients across the globe through a unique client proximity and best-fit global delivery model to accelerate their digital transformation and drive competitive advantage. cgi.com

© 2016 CGI Group Inc. BestDriver, CGI Advantage, CGI Atlas360, CGI Collections360, CGI CommunityCare360, CGI ProperPay, CGI Trade360, CGI Traffic360, CGI Unify360, Data2Diamonds, Experience the commitment, Exploration2Revenue, GIOS, HotScan, Pragma, Pro Logistica, ProSteward360, Ratabase, [email protected] and Sovera are trademarks or registred trademarks of CGI Group Inc. or its related companies. Microsoft and Hololens are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. iBeacon is a trademark of Apple Inc.