Investor Day 2016 Client-driven market approach Doug McCuaig, EVP, Global Client Transformation Services CGI Group Inc.
CGI s go to market strategy is client-centric Listening to our clients We listen to our clients perspectives to refine our thinking, inform our investments, and evolve our strategy Enabling digital transformation Clients are challenged to achieve their vision but identified key digital enablers to execute on their enterprise digital transformation Focusing on profitable growth To help clients run, change, and grow, CGI is focusing on 3 key growth levers: Digital Transformation Consulting, Digital IP and Transformational Outsourcing 2
CGI s strategic planning process engages our three key stakeholders JANUARY APRIL APRIL JULY JULY SEPTEMBER OCTOBER Business Intelligence Strategy Process Business Planning Annual Tour Our Clients interviews Member Consultation Investor interviews Economic perspectives Industry sector trends IT trends Competitive analysis Vision building Strategic assessment and formulation Leadership Conference Directions & Priorities JUNE Strategic Plan Executive Committee & Board discussions JULY Operational plan and budget BUs, SBUs and global functions develop annual business plans Strategic Plan and Operational Plan Board approval SEPTEMBER Launching of operational plans at company and business unit levels Our Clients go to market initiatives Incorporating client insights ensures we are market-driven 3
Our go-to-market model connects the best of global and local to deliver value to our clients and CGI Market Dynamics Our Shareholders Canada US Eastern, Central & Southern Europe Our Clients Strategic Business Units Our Members CGI Business Imperatives France Nordics UK Asia Pacific Global Delivery Network 4
Our go-to-market model connects the best of global and local to deliver value to our clients and CGI Global Practices & Global Industries Market Dynamics Our Shareholders Our Clients Our Members CGI Business Imperatives Communications Financial Services Government Health Manufacturing Oil & Gas Post & Logistics Retail & Consumer Transport Utilities Digital Transformation Digital Insights Digital Business Svcs Cybersecurity Canada US Eastern, Central & Southern Europe Strategic Business Units France Nordics UK Asia Pacific Global Delivery Network 5
Our go-to-market model connects the best of global and local to deliver value to our clients and CGI Global Practices & Global Industries Market Dynamics Our Shareholders Our Clients Our Members CGI Business Imperatives Communications Financial Services Government Health Manufacturing Oil & Gas Post & Logistics Retail & Consumer Transport Utilities Digital Transformation Digital Insights Digital Business Svcs Cybersecurity Canada US Eastern, Central & Southern Europe Strategic Business Units France Nordics UK Asia Pacific Annual Business Plans & Growth Levers CGI Services & IP Solutions Portfolio Strategy CGI Thought Leadership & Subject Matter Experts Proactive Client Meetings Proactive & Responsive Client Proposals Client References & Case Studies Global Delivery Network 6
enabled by one digital operating model, CGI s Management Foundation Global Practices & Global Industries Market Dynamics Our Shareholders Our Clients Our Members CGI Business Imperatives Communications Financial Services Government Health Manufacturing Oil & Gas Post & Logistics Retail & Consumer Transport Utilities Digital Transformation Digital Insights Digital Business Svcs Cybersecurity Canada US Eastern, Central & Southern Europe Strategic Business Units France Nordics UK Asia Pacific Annual Business Plans & Growth Levers CGI Services & IP Solutions Portfolio Strategy CGI Thought Leadership & Subject Matter Experts Proactive Client Meetings Proactive & Responsive Client Proposals Client References & Case Studies Global Delivery Network 7
In 2015, we held 965 in-person client interviews as part of CGI s Our Clients program 10 Industries 17 countries covering all SBUs 34% Government 21% Financial Services 9% Utilities 8% Retail & Consumer 7% Manufacturing 7% Communications 6% Health 4% Oil & Gas 3% Transport 1% Post & Logistics 44% 56% Business Executives IT Leaders Source: CGI Our Clients (2015) 8
Globally, our clients are focused on becoming customer-centric digital organizations Top 2015 Business Priorities Meet increased Omni-Channel customer/citizen expectations Accelerate digital transformation Deliver regulatory compliance Address cost / budget pressures Protect through cybersecurity Source: CGI Our Clients (2015) 9
Our clients IT priorities are aligned with the business Top 2015 Technology Priorities Transform and connect with all stakeholders to become a digital enterprise Drive IT Modernization to become more agile and reduce the cost of run to invest in change Develop the capabilities to deliver the benefits of data & business insight Protect stakeholders through enhanced cybersecurity Embrace new delivery models to align costs with revenue (SaaS, Cloud, Managed Services / Outsourcing) Source: CGI Our Clients (2015) 10
However, organizations are struggling to transform Revenue growth / budgets are under pressure & costs are rising Clients are challenged by their ability to fund digital transformation Revenue pressure Investments to Change challenged Only 18% of CapEx budgets are allocated to change 18% 82% $ Cost to Run increasing 65% have not been able to reduce run costs to invest in change 15% Increase 50% Flat 35% Decrease Time Source: CGI Our Clients (2015) 11
Clients identified enablers to reduce the run and execute on change to become digital Current State Enterprise Digital Transformation Future State: To be a customer-centric digital organization Customer-Centric Business Transformation Drive growth Revenue Investments to Change challenged Digital Customer Experience (Omni-channel) Agile + Digital Insights (Data) People & Technology Transformation Cybersecurity by building a digital organization Increasing run cost of legacy platforms Human Capital Strategy Digital Employees Automation + Internet of Things Operating Model Transformation SaaS on a modern platform Operating Model (Process & Data) IT Modernization (Apps & Systems) Cloud/ IaaS Managed Services/ Outsourcing Regulatory Compliance Source: CGI Our Clients (2015) 12
CGI s helps clients achieve superior value through end-to-end digital transformation Secure Digitization Discrete Digital Services Optimization Transformational Outsourcing Connected Enterprise Digital Transformation Channels Increases cost 15-25% total typical business savings 25-45% total typical business savings Workforce Processes Technology Data > 150 Mission- Critical IP Solutions Customer-centric omni-channel Strategic & execution talent Digital business processes Modern technology platform Connected data, predictive insights Enterprise Digital Transformation Strategy & Roadmap Customer-Centric Business Transformation People & Technology Transformation Operating Model Transformation 13
Global Delivery CGI s go-to-market profitable growth accelerators focus on delivering these client-centric enablers Grow 1 High-End Digital Consulting enabled by Proximity Design customer-centric digital strategies informed by deep domain expertise Digital Customer Experience (Omni-channel) Agile Digital Insights (Data) Cybersecurity Change 2 IP30 Digital Solutions Digitize functions and processes using new delivery models and CGI assets + Human Capital Strategy Digital Employees Automation Internet of Things Transformational Outsourcing SaaS + > 150 Mission- Critical IP Solutions Run 3 Execute IT modernization to deliver agility and reduce run costs to invest in change Operating Model (Process & Data) IT Modernization (Apps & Systems) Cloud/ IaaS Managed Services/ Outsourcing Regulatory Compliance 14
THANK YOU 15