© CGI Group Inc. CONFIDENTIAL

Unlocking organizational value through digital transformation

George Schindler President & CEO, CGI 25 January 2018

The Fourth Industrial Revolution is spurring economic and industry transformation around the world

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1780s

1.0

Mechanization

1870s

2.0

Mass Production

1960s

3.0

Computing

PRODUCT CENTRIC SERVICES CENTRIC

The Fourth Industrial Revolution is spurring economic and industry transformation around the world

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Now

4.0

1780s

1.0

Mechanization

1870s

2.0

Mass Production

1960s

3.0

Computing

DATA CENTRIC

Intelligent Computing

PRODUCT CENTRIC SERVICES CENTRIC

> Robotic-first approach > Focus on automation > Machine learning, cognitive > Knowledge arbitrage > Cost per transaction, per robot, per machine > Preventive, self-heal, self-serve ►Algorithms and software as key drivers

> Human-first approach > Focus on recruitment & training > Offshoring, labor arbitrage > Cost per human hour > Standardization, repetitive processes, reporting > Break-fix ►Humans are the key asset

Traditional business operations Digital business operations

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Organizations are evolving from traditional to digital business operations

> Robotic-first approach > Focus on automation > Machine learning, cognitive > Knowledge arbitrage > Cost per transaction, per robot, per machine > Preventive, self-heal, self-serve > Algorithms and software as key drivers ► Humans remain the key asset

> Human-first approach > Focus on recruitment & training > Offshoring, labor arbitrage > Cost per human hour > Standardization, repetitive processes, reporting > Break-fix > Humans are the key asset

Traditional business operations Digital business operations

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Organizations are evolving from traditional to digital business operations

Business value

Efficiency & Productivity

Security & Compliance

Customer Satisfaction &

Loyalty

Practical Innovation

Competitive Advantage

Growth Employee Retention & Engagement

Decades of technology investment and innovation have given consumers unprecedented power in today’s marketplace

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Every consumer has a choice and voice – individually and collectively

Consumers’ digital behaviors and expectations carry into their lives as citizens

Technology is now an extension of organizations’ consumer relationships and brands

Consumers are using their power to redefine value propositions for both businesses and governments

CGI leaders hold in-person interviews every year with business and technology executives to discuss the shifting market dynamics

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10 INDUSTRIES

GLOBAL NORTHERN EUROPE FINLAND

1,300 interviews

17 countries

200 interviews

5 countries 83 interviews

2017 Client Interviews

More than 60% of interviews are with C-level executives

Asset Intensive

• Utilities • Manufacturing • Transportation

Risk & Investment Intensive

• Government • Healthcare • Insurance • Oil & Gas

Consumer Intensive

• Banking • Communications • Retail & Consumer Services

Executives are aligned on the view that technology is now driving, not just enabling new value propositions

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Becoming a digital organization to meet consumer / citizen expectations was the top trend, business and IT priority

Global ▲ 2016 Northern Europe ▲

2016 Finland ▲ 2016

Top Industry Trend 85% 87% 88%

Top Business Priority 76% 78% 80%

Top IT Priority 76% 82% 82%

K E Y I N S I G H T

Alignment on digital transformation as a top focus is up year-over-year across geographies

2017 CGI Clients Global Insights

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R E C O M M E N D A T I O N # 1

Unlock organizational value by aligning your team on what it takes to create tomorrow’s value

PRODUCT CENTRIC SERVICES CENTRIC DATA CENTRIC

Tomorrow’s IT Value Yesterday’s IT Value > Lower operating costs

> Ability to scale operations

> Access to technology skills

> Standard processes

> Meet compliance / regulatory requirements

> New business and operating models

> Monetization of data and security

> Contextual customer and employee experience

> Predictive analytics for decision making with intelligent enterprise processes

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Executives are starting to place more emphasis on enterprise-wide digital strategies

K E Y I N S I G H T 60% of organizations do not have an enterprise digital strategy

Percentage of organizations with a digital strategy across their enterprise

Global

40% Northern Europe

37% Finland

39%

2017 CGI Clients Global Insights

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Becoming a digital organization is highly complex for established organizations

To create sustainable value, digital transformation initiatives must:

> Span business & operating models

> Address existing systems complexity

> Evolve the roles and expectations of people, process & technology

K E Y I N S I G H T

Finnish organizations report more mature digital strategies compared to their global peers

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R E C O M M E N D A T I O N # 2

Unlock organizational value by adopting an agile, iterative approach to your enterprise digital strategy – and how you innovate and govern

Decisions made based on insights from customer and operational data

Employees equipped and freed up to work on value-add activities

Smaller, focused units that collaborate across the enterprise and make faster decisions

Culture and management system that encourages a curious mind-set, collaboration and innovation

Co-designed products & services informed by customer needs & behaviors

Integrated ecosystem of partners to collaborate, share, innovate and deliver

Iterative delivery through agile, simplified operational processes

Smart, fast, integrated and automated technology platforms and solutions

Source: CGI

Business Product, Service, Model

Technology

Organization Structure, Culture, People

Agile business

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R E C O M M E N D A T I O N # 2

Unlock organizational value by adopting an agile, iterative approach to your enterprise digital strategy – and how you innovate and govern

Decisions made based on insights from customer and operational data

Employees equipped and freed up to work on value-add activities

Smaller, focused units that collaborate across the enterprise and make faster decisions

Culture and management system that encourages a curious mind-set, collaboration and innovation

Co-designed products & services informed by customer needs & behaviors

Integrated ecosystem of partners to collaborate, share, innovate and deliver

Iterative delivery through agile, simplified operational processes

Smart, fast, integrated and automated technology platforms and solutions

Source: CGI

Business Product, Service, Model

Technology

Organization Structure, Culture, People

Agile business

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Executives cite cultural change and talent as the biggest barriers to implementing digital transformation

K E Y I N S I G H T

Compared to last year, Finnish executives say they have made progress on addressing culture and talent challenges

Northern Europe

79% Finland

75% Global

81%

In our client interviews, there is alignment on:

Culture and talent as the top barrier to achieving digital transformation

2017 CGI Clients Global Insights

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R E C O M M E N D A T I O N # 3

Unlock organizational value by using data to address your human capital strategy holistically – it requires more than a change management plan

Recruitment

Partnerships

Leadership

Management

Development

Retention

More than two-thirds of organizations have analytics initiatives underway but they are not consistently part of an enterprise strategy

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Canada

USA

Australia

United Kingdom Northern Europe

Eastern, Central and Southern Europe

France

67%

65%

67% 68%

82%

70%

71%

70%

2017 CGI Clients Global Insights

The three-year investment horizon favors analytics, and modernization and cyber remain priorities

Applying analytics to optimize the business

Becoming digital to meet customer needs

Need to modernize

Addressing cyber risk

Growing use of digital technologies

Global Northern Europe Finland

35%

51%

65%

69%

78%

35%

48%

60%

67%

76%

36%

44%

59%

66%

73%

K E Y I N S I G H T

Northern Europe and Finland were early analytics adopters and are planning to invest in emerging technologies to better use the data

17 2017 CGI Clients Global Insights

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Most organizations are in early stages of using emerging technologies, including robotics

Investigating Proof of Concept Transformation in Progress Transformation Largely Achieved Not For Us

Robotics

Global

Finland

Northern Europe

36%

40%

32%

23%

23%

20%

27%

22%

14%

10%

13%

32%

K E Y I N S I G H T

Finnish organizations are investigating and adopting emerging technologies faster than global peers

2017 CGI Clients Global Insights

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Unlock organizational value by accelerating analytics initiatives through an intelligent automation framework

R E C O M M E N D A T I O N # 4

User experience

Analytics

Data classes

Use case Interaction

Video, image, gesture, speech, social, IoT

Cognitive, emotion, reasoning, deep neural nets

Virtual agent, fully autonomous, sentiment / empathy, avatar

Artificial Intelligence

Operation

Predictive, machine learning, NLP, narrow AI

Unstructured + big data, IoT

Scripted chat bots, text & speech, hybrid human handoff

Algorithmic automation

Transaction

Decision support analytics

FAQ text chat bots, human back-up

Structured + unstructured

Enhanced process automation

Rules-driven

Structured

Process

Humans supervise

Robotic process automation

Basic automation

Source: CGI

SUMMARY

Unlocking organizational value through digital transformation

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Align your team on what it takes to create tomorrow’s value

Adopt an agile, iterative approach to your enterprise digital strategy – and how you innovate and govern

Address your human capital strategy holistically and by using data – it requires more than a change management plan

Accelerate your analytics initiatives through an intelligent automation framework

NEW Select the right partner to meet you where you are and help design and execute your digital transformation journey

Global consistency at scale • CGI Dream • Core Values • Vision & Mission • CGI Management Foundation

Applied innovation through our client proximity model • Metro Markets • Industries • Emerging Technology Practices

End-to-end services and solutions

• High-End IT and Business Consulting • Systems Integration • Outsourcing • Intellectual Property (IP)

Accelerated value creation • Intellectual Property (IP) • Global Delivery Centers of Excellence • Consulting and IT Delivery Methodologies • Strategic Partnerships

Select the right partner to meet you where you are and help design and execute your digital transformation journey

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R E C O M M E N D A T I O N # 5

Global consistency at scale • CGI Dream • Core Values • Vision & Mission • CGI Management Foundation

Applied innovation through our client proximity model • Metro Markets • Industries • Emerging Technology Practices

End-to-end services and solutions

• High-End IT and Business Consulting • Systems Integration • Outsourcing • Intellectual Property (IP)

Accelerated value creation • Intellectual Property (IP) • Global Delivery Centers of Excellence • Consulting and IT Delivery Methodologies • Strategic Partnerships

Right Talent • Consultative Skills • Industry Knowledge • Technical Expertise • Learning Agility

Select the right partner to meet you where you are and help design and execute your digital transformation journey

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R E C O M M E N D A T I O N # 5

THANK YOU Our commitment We approach every engagement with one objective in mind: to help clients succeed