| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | TODAY'S SPEAKERS Cesar Gon Founder & CEO Bruno Guicardi Founder & NAE President Stanley Rodrigues Partner, CFO Eduardo Galvão IR Director Q&A SESSION investors.ciandt.com Submit your question via email to INVESTORS@CIANDT.COM SAFE HARBOR AND NON-IFRS MEASURES FORWARD-LOOKING STATEMENTS This presentation includes "forward-looking statements" within the meaning of the "safe harbor"provisions ...

[1Q23 Earnings Release](index=3&type=section&id=1Q23_Earnings_Release) [Operating and Financial Highlights](index=3&type=section&id=Operating_and_Financial_Highlights) CI&T reported strong Q1 2023 results, with significant year-over-year growth in net revenue, net profit, and adjusted EBITDA 1Q23 Key Financial and Operating Metrics (BRL million, vs. 1Q22) | Metric | 1Q23 | 1Q22 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | BRL 610.0 million | BRL 491.9 million | +24.0% | | Net Profit | BRL 52.4 million | BRL 29.2 million | +79.2% | | Adjusted EBITDA | BRL 116.5 million | BRL 84.5 million | +37.9% | | Adjusted EBITDA Margin | 19.1% | 17.2% | +1.9 p.p. | | Adjusted Net Profit | BRL 67.2 million | BRL 39.5 million | +70.0% | | Cash from Operations | BRL 116.5 million | -BRL 47.0 million | N/A | | Clients > BRL 1M Revenue (LTM) | 180 | 110 | +63.6% | [Comments on Financial Performance](index=3&type=section&id=Comments_on_Financial_Performance) Q1 2023 revenue growth was driven by regional expansion, maintaining gross profit margin and improving SG&A efficiency - Net revenue grew **24.0%** YoY (**24.3%** at constant currency), with growth observed in all operating regions[270](index=270&type=chunk) - Adjusted Gross Profit Margin was **35.1%**, in line with the **35.2%** margin in 1Q22[13](index=13&type=chunk)[26](index=26&type=chunk) - SG&A and other operating expenses as a percentage of revenue decreased to **19.1%** in 1Q23 from **20.4%** in 1Q22, indicating improved operational efficiency[280](index=280&type=chunk) - Net financial expenses rose **19.5%** YoY to **BRL 20.0 million**, primarily due to higher debt, increased interest rates, and a negative foreign exchange variation[271](index=271&type=chunk) - Adjusted Net Profit margin expanded by **3 percentage points** to **11.0%**, benefiting from SG&A dilution and lower income tax[14](index=14&type=chunk) [Business Outlook](index=4&type=section&id=Business_Outlook) CI&T forecasts Q2 2023 net revenue of at least BRL 570 million, maintaining full-year revenue growth and EBITDA margin guidance 2023 Business Outlook | Period | Metric | Guidance | | :--- | :--- | :--- | | **Q2 2023** | Net Revenue | At least BRL 570 million | | **Full Year 2023** | Net Revenue Growth (Constant Currency) | 13% to 17% YoY | | **Full Year 2023** | Adjusted EBITDA Margin | At least 19% | [Non-IFRS Financial Measures and Reconciliations](index=4&type=section&id=Non-IFRS_Financial_Measures_and_Reconciliations) The company uses non-IFRS measures like Adjusted Gross Profit, EBITDA, and Net Profit to clarify operational performance - CI&T uses non-IFRS measures like Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Profit, and Net Revenue at Constant Currency to enhance investor understanding of its financial performance, excluding items not directly related to service management[48](index=48&type=chunk) Reconciliation of Gross Profit to Adjusted Gross Profit (in BRL thousand) | Description | 1Q23 | 1Q22 | | :--- | :--- | :--- | | **Gross Profit (IFRS)** | **202,130** | **162,880** | | Depreciation and amortization | 9,410 | 9,318 | | Stock-based compensation | 2,376 | 1,182 | | **Adjusted Gross Profit** | **213,916** | **173,380** | | *Adjusted Gross Profit Margin* | *35.1%* | *35.2%* | Reconciliation of Net Profit to Adjusted EBITDA (in BRL thousand) | Description | 1Q23 | 1Q22 | | :--- | :--- | :--- | | **Net profit for the period (IFRS)** | **52,382** | **29,223** | | Net financial cost | 19,968 | 16,712 | | Income tax expense | 11,723 | 15,314 | | Depreciation and amortization | 25,053 | 19,390 | | Stock-based compensation | 5,393 | 1,239 | | Government grants | (140) | (58) | | Acquisition-related expenses | 2,124 | 2,695 | | **Adjusted EBITDA** | **116,504** | **84,515** | | *Adjusted EBITDA Margin* | *19.1%* | *17.2%* | Reconciliation of Net Profit to Adjusted Net Profit (in BRL thousand) | Description | 1Q23 | 1Q22 | | :--- | :--- | :--- | | **Net profit for the period (IFRS)** | **52,382** | **29,223** | | Acquisition-related expenses | 14,836 | 10,323 | | **Adjusted Net Profit** | **67,218** | **39,546** | | *Adjusted Net Profit Margin* | *11.0%* | *8.0%* | [Unaudited Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Unaudited_Condensed_Consolidated_Interim_Financial_Statements) [Statement of Financial Position](index=7&type=section&id=Statement_of_Financial_Position) CI&T's total assets were BRL 3.018 billion as of March 31, 2023, with liabilities at BRL 1.631 billion and equity at BRL 1.387 billion Condensed Statement of Financial Position (in BRL thousands) | Account | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **3,018,407** | **3,026,763** | | Cash and cash equivalents | 251,550 | 185,727 | | Intangible assets and goodwill | 1,719,226 | 1,750,898 | | **Total Liabilities** | **1,631,338** | **1,688,584** | | Loans and borrowings | 948,324 | 974,231 | | Accounts payable for business combination | 204,686 | 204,949 | | **Total Equity** | **1,387,069** | **1,338,179** | [Statement of Profit or Loss](index=6&type=section&id=Statement_of_Profit_or_Loss) CI&T reported Q1 2023 net revenue of BRL 610.0 million (up 24.0%) and net profit of BRL 52.4 million (up 79.2%) Condensed Statement of Profit or Loss (in BRL thousands) | Account | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net Revenue | 609,991 | 491,872 | | Gross Profit | 202,130 | 162,880 | | Operating profit | 84,073 | 61,249 | | Profit before Income tax | 64,105 | 44,537 | | **Net profit for the period** | **52,382** | **29,223** | | **Earnings per share – basic (in BRL)** | **0.39** | **0.22** | [Statement of Cash Flows](index=8&type=section&id=Statement_of_Cash_Flows) In Q1 2023, CI&T generated BRL 93.1 million net cash from operating activities, a strong turnaround from prior year Condensed Statement of Cash Flows (in BRL thousands) | Activity | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net cash from (used in) operating activities | 93,072 | (72,719) | | Net cash from (used in) investment activities | (2,773) | 92,830 | | Net cash used in financing activities | (23,269) | (39,843) | | **Net increase/(decrease) in cash** | **67,030** | **(19,732)** | | **Cash and cash equivalents at end of period** | **251,550** | **131,827** | [Notes to the Financial Statements](index=19&type=section&id=Notes_to_the_Financial_Statements) The notes detail accounting policies, business combinations, intangible assets, revenue, expenses, and risk management [Note 1 & 2: Reporting Entity and Business Combination](index=19&type=section&id=Note_1_and_2_Reporting_Entity_and_Business_Combination) CI&T Inc. is a holding company developing software solutions, completing several acquisitions in 2022 including Somo and Ntersol - The company is a holding entity for subsidiaries that develop customizable software solutions, including AI, analytics, and cloud technologies[302](index=302&type=chunk) - In **2022**, the company acquired Somo, Box **1824**, Transpire, and Ntersol. The total consideration transferred for these acquisitions was **BRL 447.4 million**, **BRL 34.2 million**, **BRL 77.3 million**, and **BRL 664.7 million**, respectively[35](index=35&type=chunk)[303](index=303&type=chunk) [Note 11: Intangible Assets and Goodwill](index=26&type=section&id=Note_11_Intangible_Assets_and_Goodwill) Intangible assets and goodwill totaled BRL 1.719 billion as of March 31, 2023, mainly comprising goodwill and customer relationships Intangible Assets and Goodwill Breakdown (in BRL thousands) | Asset | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Customer relationship | 274,890 | 288,943 | | Brands | 5,849 | 7,464 | | Software & Other | 21,488 | 21,567 | | **Goodwill** | **1,416,999** | **1,432,894** | | **Total** | **1,719,226** | **1,750,898** | Goodwill by Acquisition (in BRL thousands) | Acquisition | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Dextra | 595,721 | 595,721 | | Ntersol | 456,887 | 469,235 | | Somo | 260,715 | 260,466 | | Transpire | 61,187 | 63,702 | | Other | 42,489 | 47,470 | | **Total Goodwill** | **1,416,999** | **1,432,894** | [Note 13: Loans and Borrowings](index=29&type=section&id=Note_13_Loans_and_Borrowings) Total loans and borrowings were BRL 948.3 million as of March 31, 2023, with compliance to financial covenants maintained - Total loans and borrowings were **BRL 948.3 million**, with **BRL 233.6 million** classified as current and **BRL 714.7 million** as non-current[116](index=116&type=chunk)[355](index=355&type=chunk) - The debt contracts include covenants, such as maintaining a specific Net Debt to EBITDA ratio, which could trigger early maturity if breached[140](index=140&type=chunk)[264](index=264&type=chunk) - The company was in compliance with all loan covenants as of March **31**, **2023**[357](index=357&type=chunk) [Note 18: Stock-based Compensation](index=33&type=section&id=Note_18_Stock-based_Compensation) The Group maintains equity and cash-settled stock-based compensation plans, with Q1 2023 expenses at BRL 5.4 million - The company has multiple stock-based payment arrangements, including Stock Option Plans (SOP), Incentive Stock Options (ISO), and Restricted Stock Units (RSU) for its employees[147](index=147&type=chunk)[124](index=124&type=chunk) - Total stock-based compensation expense recognized in profit or loss for Q1 **2023** was **BRL 5.39 million**, compared to **BRL 1.24 million** in Q1 **2022**[130](index=130&type=chunk) - As of March **31**, **2023**, there were **4,131,273** outstanding stock options and **1,437,030** outstanding RSUs[130](index=130&type=chunk) [Note 20: Net Revenue](index=37&type=section&id=Note_20_Net_Revenue) Q1 2023 net revenue was BRL 610.0 million, mainly from software development, with Technology and Telecommunications leading growth Net Revenue by Type (in BRL thousands) | Revenue Type | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Software development | 580,876 | 470,662 | | Software maintenance | 17,020 | 13,380 | | Consulting | 10,599 | 5,173 | | Other | 1,506 | 2,657 | | **Total net revenue** | **609,991** | **491,872** | Net Revenue by Industry Vertical (in BRL thousands) | Industry Vertical | March 31, 2023 | March 31, 2022 | Change YoY | | :--- | :--- | :--- | :--- | | Financial services | 174,783 | 156,326 | +11.8% | | Technology and telecommunications | 125,060 | 68,056 | +83.8% | | Consumer goods | 116,156 | 104,369 | +11.3% | | Retail and industrial goods | 75,814 | 73,222 | +3.5% | | Life sciences | 63,281 | 62,893 | +0.6% | | Others | 54,897 | 27,006 | +103.3% | | **Total net revenue** | **609,991** | **491,872** | **+24.0%** | - Revenue from a single customer represented **11.1%** of total net revenues as of March **31**, **2023**, down from **15.4%** in the prior year period[254](index=254&type=chunk) [Note 21: Expenses by Nature](index=39&type=section&id=Note_21_Expenses_by_Nature) Total costs and expenses for Q1 2023 were BRL 525.9 million, with employee expenses as the largest component Expenses by Nature (in BRL thousands) | Expense Category | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Employee expenses | (443,313) | (365,596) | | Third-party services and other inputs | (34,070) | (24,226) | | Depreciation and amortization | (25,053) | (19,390) | | Stock-based compensation | (5,393) | (1,239) | | Other costs and expenses | (17,789) | (18,072) | | **Total** | **(525,918)** | **(430,623)** | [Note 24: Earnings Per Share](index=41&type=section&id=Note_24_Earnings_Per_Share) For Q1 2023, basic EPS was BRL 0.39 and diluted EPS was BRL 0.38, based on net profit of BRL 52.4 million Earnings Per Share Calculation | Metric | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net Profit (in BRL thousands) | 52,382 | 29,223 | | Weighted average basic shares | 133,834,456 | 132,639,430 | | **Basic EPS (in BRL)** | **0.39** | **0.22** | | Weighted average diluted shares | 137,279,821 | 132,963,392 | | **Diluted EPS (in BRL)** | **0.38** | **0.22** | [Note 25: Financial Instruments and Risk Management](index=42&type=section&id=Note_25_Financial_Instruments_and_Risk_Management) The Group manages market, credit, and liquidity risks, utilizing hedges and swaps for foreign currency and interest rate exposures - The Group is exposed to foreign exchange risk as revenue is mainly denominated in foreign currency while expenses are mainly in Brazilian Reais (BRL)[194](index=194&type=chunk)[215](index=215&type=chunk) - To mitigate currency risk, the company uses cash flow hedge accounting, designating non-derivative financial instruments (long-term debt in USD) to hedge highly probable future export revenues[179](index=179&type=chunk)[215](index=215&type=chunk) - The company is exposed to interest rate risk from changes in CDI, LIBOR, and SOFR on its financial assets and liabilities. It uses interest rate swaps to hedge this exposure[201](index=201&type=chunk)[221](index=221&type=chunk)[229](index=229&type=chunk) - Credit risk is managed by analyzing the financial condition of counterparties and setting credit limits. The maximum credit risk exposure from financial assets was **BRL 1.068 billion** as of March **31**, **2023**[241](index=241&type=chunk)[243](index=243&type=chunk) - Liquidity risk is managed through cash flow projections and maintaining credit lines to ensure funds are available to meet obligations[208](index=208&type=chunk)[245](index=245&type=chunk) [Share Repurchase Program](index=55&type=section&id=Share_Repurchase_Program) CI&T's Board approved a share repurchase program for up to 1.5 million Class A common shares over a 12-month term - The Board of Directors approved a share repurchase program for up to **1.5 million** Class A common shares[238](index=238&type=chunk)[258](index=258&type=chunk) - The program has a term of **12 months** and was established to meet obligations from stock-based compensation plans and M&A deals[273](index=273&type=chunk)[260](index=260&type=chunk) - Repurchases may occur through open market purchases, privately negotiated transactions, or other means, and the program can be suspended or discontinued at any time[262](index=262&type=chunk)

Table of Contents ITEM 16. RESERVED 113 A. Audit Committee Financial Expert 113 113 113 114 114 114 114 114 114 115 115 115 115 | --- | |---------------------------------------------------------------------------| | | | B. Code of Ethics | | C. Principal Accountant Fees and Services | | D. Exemptions from the listing standards for audit committees | | E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers | | F. Change in registrant's certifying accountant | | G. Corporate governance | | ...

Financial Data and Key Metrics Changes - The net revenue for 2022 reached BRL2.19 billion, a 51% year-over-year increase, or 58% growth at constant currency [23][31] - Adjusted EBITDA for the fourth quarter was BRL127.4 million, a 25% increase compared to Q4 2021, with an adjusted EBITDA margin of 20.8% [12][30] - Adjusted net profit for Q4 2022 was BRL54.5 million, a 4.3% increase from Q4 2021, with a net profit margin of 8.9% [12][34] Business Line Data and Key Metrics Changes - The adjusted EBITDA margin for the full year was 19.1%, reflecting the impact of acquired companies [5][33] - The number of clients generating more than BRL20 million annually doubled from 2020 to 2022, indicating strong growth in high-value accounts [32] Market Data and Key Metrics Changes - The U.S. and Europe are the fastest-growing regions, with over 55% of revenue coming from mature economies, expected to trend towards 60% by the end of 2023 [6][14] - The share of revenue from the top 10 clients decreased from 67% in 2020 to under 50% in 2022, with a target of 40% by the end of 2023 [6][14] Company Strategy and Development Direction - The company emphasizes digital efficiency and aims to help clients capture digital opportunities effectively, positioning itself as a leader in digital innovation [4][17] - CI&T's strategy includes a disciplined approach to adding new clients and focusing on sustainable growth through M&A and organic expansion [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about technology advancements and the necessity for companies to invest in digital initiatives, despite a conservative approach to new projects due to economic uncertainty [17][60] - The company expects net revenue for Q1 2023 to be at least BRL590 million, representing a 20% year-over-year growth, with a full-year growth projection of 13% to 17% [36][60] Other Important Information - The company has been actively working on its ESG initiatives, including a commitment to sustainability and diversity in hiring practices [10][28] - CI&T's attrition rate improved to 14% in 2022 from 16% in 2021, with leadership attrition remaining below 5% [27][54] Q&A Session Summary Question: Are you seeing any signs of demand stabilization improvement? - Management noted that while there is uncertainty in the budget process, clients are maintaining current digital investments but are more conservative with new initiatives [60][70] Question: Can you comment on the FX losses during the fourth quarter? - The CFO explained that FX variations impacted accounts receivable in the Brazilian operation, which is recorded through the P&L [52] Question: What are the hiring trends expected over the near term? - Management indicated that hiring is typically slower in Q1 but is expected to pick up in subsequent quarters, with a more favorable hiring environment due to economic conditions [51] Question: How is the company preparing for the disruption of generative AI? - The company is experimenting with generative AI tools to enhance productivity across various functions, indicating a proactive approach to leveraging new technologies [55][73] Question: What is the outlook for M&A in 2023? - Management stated that while there will be less M&A activity in 2023, the focus will be on integrating recent acquisitions and preparing for future opportunities [74][75]

During 2022, CI&T added 84 new clients with annual revenue above R$1.0 million to our portfolio, demonstrating CI&T's capability to onboard new clients and the resilience in the demand for digital services. Business Outlook Table of Contents In 4Q22, net financial expenses were R$31.9 million, an increase of R$23.8 million, compared to 4Q21, mainly as a result of a net foreign exchange loss of R$15.8 million in 4Q22, compared to a net foreign exchange gain of R$9.2 million in 4Q21. In 2022, the net profit w ...

Financial Performance - CI&T achieved a net revenue of approximately R$1.44 billion in FY 2021 with an Adjusted EBITDA margin of 22.4%[7] - The company's net revenue grew by 60% in 9M22 compared to 9M21, or 65% at constant currency[30] - Adjusted EBITDA for 9M22 reached R$294 million, representing a margin of 18.6%[30] - Adjusted Net Profit for 9M22 was R$162.9 million, resulting in a margin of 10.3%[35] Growth and Expansion - CI&T has experienced 27 years of profitable growth, with a CAGR of 34% from 2017 to 2021[7] - The company's net revenue retention rate in 2021 was 128%[8] - CI&T is targeting at least 41% year-over-year net revenue growth in 2022, or 58% on a constant currency basis, with an Adjusted EBITDA margin of at least 19%[45] - The company is expanding its global presence, with 64% of 9M22-9M21 net revenue growth generated in North America and Europe[46] Market Opportunity - The worldwide digital transformation market is estimated at $648 billion with 14% growth[26] - The United States digital transformation market is estimated at $225 billion with 13% growth[26] - The Latin America digital transformation market is estimated at $16 billion with 17% growth[26]

Financial Data and Key Metrics Changes - The company's net revenue for Q3 2022 was BRL 559 million, representing a 49% year-over-year growth, with 35 percentage points from organic growth and 14 percentage points from acquisitions [14][23] - Adjusted EBITDA margin for the quarter was 19.2%, showing a sequential improvement from 19.1% in Q2 2022 and 17.5% in Q1 2022 [28] - Adjusted net profit reached BRL 69.5 million, a 157% increase compared to Q3 2021, with an adjusted net profit margin of 12.4% [29] Business Line Data and Key Metrics Changes - The company added 71 new clients in the last 12 months, increasing the total number of clients with annual revenue above BRL 1 million to 147 [14] - Revenue from financial services grew by 38%, food and beverage by 27%, TMT by 99%, and farming and cosmetics by 50% year-over-year [27] Market Data and Key Metrics Changes - North America remains the fastest-growing market, with expectations for further growth following the acquisition of NTERSOL [26] - The company recorded revenue growth across all regions and industry verticals year-over-year [26] Company Strategy and Development Direction - The company completed its first wave of acquisitions, including NTERSOL, which enhances its capabilities in the financial services sector and nearly doubles its onshore team in the U.S. [8][10] - The focus remains on organic growth, leveraging recent acquisitions to expand presence in new geographies and verticals [13][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver solid growth in 2023, despite macroeconomic challenges, citing a strong pipeline and long-term client visibility [39][65] - The company anticipates net revenue growth of at least 58% year-over-year on a constant currency basis for the full year of 2022 [31] Other Important Information - The company was recognized as a Great Place to Work in Brazil and all countries of operation, highlighting its talent retention and engagement strategies [19][20] - The adjusted EBITDA margin was impacted by lower margins from recently acquired companies and increased G&A expenses due to the IPO [28] Q&A Session Summary Question: Changes in client priorities and project delays - Management noted a strong client pipeline but acknowledged trends towards shorter investment cycles and a focus on efficiency due to the macro environment [34][35] Question: Expectations for 2023 growth - Management is still finalizing the 2023 budget but anticipates solid growth based on a strong 2022 performance and new client additions [37][39] Question: Specific geographies or verticals showing strength or weakness - Management reported consistent growth across all verticals and geographies, with notable trends in financial services and retail [42][44] Question: Supply-side dynamics and wage inflation - Attrition rates have decreased to 15%, and while the market remains competitive, wage inflation pressures have subsided [46] Question: Pipeline of projects and client project postponements - Existing clients are taking a more meticulous approach to project initiation, focusing on initiatives with quicker returns [48][49] Question: Future M&A activity - Management indicated that the focus will shift to leveraging recent acquisitions for organic growth rather than pursuing new M&A in the immediate future [51][53] Question: Integration capacity for multiple M&A - The company has a structured approach to integrating acquisitions as independent growth units, allowing for parallel integration processes [55][59] Question: Financial contribution of recent acquisitions - Acquired companies are expected to initially operate at lower EBITDA margins, with plans to enhance their profitability over the next 1 to 3 years [62]

[Third Quarter 2022 Earnings Release](index=3&type=section&id=CI%26T%20Reports%20Solid%20Third%20Quarter%202022%20Financial%20and%20Operational%20Results) CI&T reported strong third-quarter 2022 financial results, driven by significant revenue growth, improved profitability, and strategic acquisitions [Financial and Operational Highlights](index=3&type=section&id=Third%20Quarter%20%283Q22%29%20Operating%20and%20Financial%20Highlights) CI&T achieved strong 3Q22 growth with net revenue up 48.7% to BRL 559.0 million, a significant turnaround to BRL 40.6 million net profit, and a near doubling of high-value clients 3Q22 Key Financial Highlights (vs. 3Q21) | Metric | 3Q22 | Change (YoY) | | :--- | :--- | :--- | | Net Revenue | BRL 559.0 million | +48.7% | | Net Profit | BRL 40.6 million | From BRL 2.2 million Loss | | Adjusted EBITDA | BRL 107.3 million | +34.1% | | Adjusted Net Profit | BRL 69.5 million | +156.7% | | Clients > BRL 1 million Revenue | 147 | +93.4% (from 76) | | Employees (CI&Ters) | 6,887 | +27.6% | 9M22 Key Financial Highlights (vs. 9M21) | Metric | 9M22 | Change (YoY) | | :--- | :--- | :--- | | Net Revenue | BRL 1,575.9 million | +59.6% | | Net Profit | BRL 95.8 million | +16.7% | | Adjusted EBITDA | BRL 293.8 million | +32.2% | | Adjusted Net Profit | BRL 162.9 million | +45.6% | [Operational and Financial Performance Review](index=3&type=section&id=Comments%20on%20the%203Q22%20financial%20performance) 3Q22 revenue growth was driven by organic expansion and acquisitions, though adjusted gross and EBITDA margins slightly contracted due to acquisition-related costs, showing sequential improvement - Net revenue in 3Q22 was **BRL 559.0 million**, a **48.7%** increase YoY (**51.3%** at constant currency), with acquisitions contributing **14 percentage points** to this growth[12](index=12&type=chunk) - The company added **20 new clients** with annual revenue above **BRL 1.0 million**, increasing the total from **127** in 2Q22 to **147** in 3Q22[13](index=13&type=chunk) - Adjusted gross profit margin slightly decreased to **36.9%** from **37.1%** in 3Q21, mainly due to lower margins from newly acquired companies[14](index=14&type=chunk) - Adjusted EBITDA margin decreased to **19.2%** from **21.3%** in 3Q21, impacted by increased SG&A expenses, but showed sequential improvement from **17.5%** in 1Q22 and **19.1%** in 2Q22[16](index=16&type=chunk) - Net profit for 3Q22 was **BRL 40.6 million**, a significant improvement from a net loss of **BRL 2.2 million** in 3Q21, with Adjusted net profit growing **156.7%** to **BRL 69.5 million**[19](index=19&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) CI&T raised its full-year 2022 guidance, projecting at least BRL 605 million in Q4 net revenue and at least 58% constant currency growth for the full year Financial Guidance | Period | Metric | Guidance | | :--- | :--- | :--- | | **Q4 2022** | Net Revenue | At least BRL 605 million | | | Net Revenue Growth (Constant Currency) | 41% YoY | | **Full Year 2022** | Net Revenue Growth (Constant Currency) | At least 58% YoY | | | Net Revenue Growth (Reported) | At least 51% YoY | | | Adjusted EBITDA Margin | At least 19% | [Non-IFRS Measures and Reconciliation](index=6&type=section&id=Reconciliation%20of%20Non-IFRS%20financial%20measures%20to%20comparable%20IFRS%20financial%20measures) The company uses non-IFRS measures like Adjusted EBITDA and Adjusted Net Profit to clarify operational performance by excluding non-recurring items, with 3Q22 Adjusted EBITDA at BRL 107.3 million - The company uses non-IFRS measures like Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Profit to enhance understanding of its financial performance by excluding items not related to direct management of services[28](index=28&type=chunk) Reconciliation of Net Profit to Adjusted EBITDA (3Q22, in BRL thousands) | Description | Amount | | :--- | :--- | | **Net profit for the period** | **40,608** | | Net financial cost | 7,432 | | Income tax expense | 16,537 | | Depreciation and amortization | 23,558 | | Stock-based compensation | 761 | | Write-off and Impairment | 2,156 | | Acquisition-related expenses | 16,497 | | Other adjustments | (204) | | **Adjusted EBITDA** | **107,343** | Reconciliation of Net Profit to Adjusted Net Profit (3Q22, in BRL thousands) | Description | Amount | | :--- | :--- | | **Net profit for the period** | **40,608** | | Write-off and Impairment | 2,156 | | Acquisition-related expenses | 26,743 | | **Adjusted Net Profit** | **69,507** | [Unaudited Condensed Consolidated Interim Financial Statements](index=15&type=section&id=Unaudited%20condensed%20consolidated%20interim%20financial%20statements) The unaudited condensed consolidated interim financial statements detail the company's financial position, performance, and cash flows, reflecting significant growth and strategic acquisitions [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for 9M 2022 show significant growth, with total assets reaching BRL 2.43 billion and net revenue at BRL 1.58 billion, despite a net cash outflow from operating activities [Statement of Profit or Loss](index=18&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20profit%20or%20loss) For 9M 2022, net revenue surged 59.6% to BRL 1,575.9 million, with gross profit increasing 56.3% and net profit growing 16.7% to BRL 95.8 million Key Profit or Loss Items (in BRL thousands) | Metric | 9M 2022 | 9M 2021 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | 1,575,905 | 987,586 | +59.6% | | Gross Profit | 541,794 | 346,600 | +56.3% | | Operating Profit | 187,374 | 165,746 | +13.0% | | Net Profit for the period | 95,830 | 82,129 | +16.7% | | Earnings per share – basic (in BRL) | 0.72 | 0.68 | +5.9% | [Statement of Financial Position](index=17&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20financial%20position) As of September 30, 2022, total assets reached BRL 2.43 billion, with a significant shift from cash to intangible assets and goodwill due to acquisitions Key Balance Sheet Items (in BRL thousands) | Metric | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and financial investments | 333,707 | 934,513 | | Intangible assets and goodwill | 1,123,626 | 738,803 | | **Total Assets** | **2,429,911** | **2,362,344** | | **Liabilities & Equity** | | | | Loans and borrowings | 706,358 | 788,709 | | Accounts payable for business combination | 119,226 | 85,726 | | **Total Liabilities** | **1,324,507** | **1,273,049** | | **Total Equity** | **1,105,404** | **1,089,295** | [Statement of Cash Flows](index=21&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20cash%20flows) For 9M 2022, the company reported a net cash outflow from operating activities of BRL 60.7 million, with investing activities generating BRL 176.0 million, primarily from financial investment redemptions Cash Flow Summary (9M 2022 vs 9M 2021, in BRL thousands) | Activity | 9M 2022 | 9M 2021 | | :--- | :--- | :--- | | Net cash (used in)/from operating activities | (60,711) | 39,451 | | Net cash from/(used in) investment activities | 175,987 | (663,896) | | Net cash (used in)/from financing activities | (102,800) | 585,724 | | **Net (decrease)/increase in cash** | **12,476** | **(38,721)** | - Cash used for acquisitions in 9M 2022 totaled **BRL 321.8 million** for Somo, Box 1824, and Transpire, offset by a **BRL 582.4 million** redemption of financial investments[55](index=55&type=chunk) [Notes to the Financial Statements](index=23&type=section&id=Notes%20to%20the%20unaudited%20condensed%20consolidated%20interim%20financial%20statements) The notes detail significant accounting policies and events, focusing on 2022 business combinations, diversified revenue streams, financial risk management, and stock-based compensation plans [Business Combinations](index=24&type=section&id=2%20Business%20combination) In 2022, CI&T significantly expanded its global presence and capabilities through strategic acquisitions of Somo, Box 1824, and Transpire, adding substantial goodwill - Acquired **Somo Global Ltd** on January 27, 2022, for a total consideration of **BRL 447.4 million**, resulting in **BRL 317.2 million** of goodwill[76](index=76&type=chunk)[79](index=79&type=chunk)[83](index=83&type=chunk) - Acquired **Box 1824** on June 1, 2022, for a total consideration of **BRL 34.2 million**, resulting in **BRL 21.5 million** of goodwill[85](index=85&type=chunk)[89](index=89&type=chunk)[96](index=96&type=chunk) - Acquired **Transpire Technology Pty Ltda** on September 1, 2022, for a total consideration of **BRL 76.6 million**, resulting in a preliminary goodwill of **BRL 75.0 million**[100](index=100&type=chunk)[103](index=103&type=chunk)[108](index=108&type=chunk) - Subsequent to the reporting period, on November 1, 2022, the company completed the acquisition of **NTERSOL Consulting LLC** to expand its financial services expertise in North America[286](index=286&type=chunk) [Revenue Analysis](index=56&type=section&id=19%20Net%20revenue) The company's 9M 2022 net revenue, primarily from software development, is diversified across geographies and industries, with NAE as the largest region and financial services as the top vertical Net Revenue by Geography (9M22, in BRL thousands) | Region | 9M22 Revenue | % of Total | | :--- | :--- | :--- | | NAE (North America & Europe) | 798,751 | 50.7% | | LATAM (Latin America) | 724,480 | 46.0% | | APJ (Asia, Pacific & Japan) | 52,674 | 3.3% | | **Total** | **1,575,905** | **100.0%** | Net Revenue by Industry (9M22, in BRL thousands) | Industry | 9M22 Revenue | % of Total | | :--- | :--- | :--- | | Financial Services | 476,250 | 30.2% | | Food and Beverages | 316,891 | 20.1% | | Technology, Media and Telecom | 215,153 | 13.7% | | Pharmaceuticals and Cosmetics | 208,837 | 13.3% | | Others | 358,774 | 22.7% | | **Total** | **1,575,905** | **100.0%** | - The top client accounted for **16%** of net revenue in 9M22 (**BRL 249.4 million**), while the top 10 clients accounted for **51.6%** (**BRL 812.8 million**)[285](index=285&type=chunk) [Financial Instruments and Risk Management](index=60&type=section&id=24%20Financial%20instruments%20and%20risk%20management) The company manages foreign exchange risk, primarily from USD and GBP revenue exposure against BRL expenses, through cash flow hedge accounting using non-derivative financial instruments - The Group is exposed to foreign exchange risk as revenue is mainly in foreign currency while expenses are mainly in BRL[230](index=230&type=chunk)[231](index=231&type=chunk) - The company applies cash flow hedge accounting to mitigate exchange rate risk on highly probable future acquisitions and future export revenues, using non-derivative financial instruments like USD-denominated investments and debt[234](index=234&type=chunk)[241](index=241&type=chunk) Net Foreign Currency Exposure (as of Sep 30, 2022, in BRL thousands) | Currency | Net Exposure | | :--- | :--- | | USD | 169,030 | | GBP | (47,817) | | Other | 8,795 | [Stock Option and Share-Based Compensation](index=50&type=section&id=17%20Stock%20option%20plan%20and%20share-based%20compensation) The company maintains various stock option and share-based compensation plans to incentivize employees, with BRL 1.9 million in expenses recognized for 9M 2022 - The company has multiple stock option plans, including equity-settled and cash-settled programs, which were migrated from its Brazilian subsidiary to the parent company during its corporate restructuring[167](index=167&type=chunk)[181](index=181&type=chunk) - A new equity-settled stock option plan was approved on June 9, 2022[177](index=177&type=chunk) - Total expenses related to share-based compensation recognized in the statement of profit or loss for the nine months ended September 30, 2022, were **BRL 1,894 thousand**[192](index=192&type=chunk)

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | TODAY'S SPEAKERS Cesar Gon Founder & CEO Bruno Guicardi Founder & NAE President https://www.linkedin.com/in/ cesargon/ https://www.linkedin.com/in/ bguicardi/ https://www.linkedin.com/in/ stanley-rodrigues-152113/ Stanley Rodrigues Partner, CFO Eduardo Galvão Head of IR https://www.linkedin.com/in/ eduardo-galv%C3%A3o-b4 7bb315/ Q&A SESSION Submit your question via email to INVESTORS@CIANDT.COM investors.ciandt.com SAFE HA ...

CI&T, Inc. (NYSE:CINT) Q2 2022 Earnings Conference Call August 18, 2022 8:00 AM ET Company Participants Eduardo Galvao - Head of Investor Relations Cesar Gon - Chief Executive Officer Bruno Guicardi - Co-Founder and President, North America and Europe Stanley Rodrigues - Chief Financial Officer Gabriel Marostegam - Head of Data, CI&T, Member of Data Analytics Powerhouse Leadership Team Paula Englert - CEO, Box 1824 Conference Call Participants Ashwin Shirvaikar - from Citi Diego Aragão - Goldman Sachs Tyler ...