CI&T Inc (NYSE:CINT) Q1 2023 Earnings Conference Call May 19, 2023 8:00 AM ET Company Participants Eduardo Galvao - Investor Relations Director Cesar Gon - Founder and Chief Executive Officer Bruno Guicardi - Founder and President for North America and Europe Stanley Rodrigues - Chief Financial Officer Conference Call Participants Tyler DuPont - Bank of America Ashwin Shirvaikar - Citi Eduardo Galvao Good morning, and welcome to CI&T Earnings Call for the First Quarter of 2023. I am Eduardo Galvao, Investor ...

Cesar Gon Founder & CEO Eduardo Galvão IR Director investors.ciandt.com Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to diff ...

For the month of May 2023 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: TABLE OF CONTENTS CI&T Reports Solid Results in 1Q23 At the same time, I believe that we are on the verge of probably the most disruptive moment in the history of computers on Earth. AI is a transformative technology with real-world applications and rapid advancements. And we, at CI&T, are moving thoughtfully fast with our clients, co-creating the future in this ne ...

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 ...

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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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K Report Of Foreign Private Issuer Pursuant To Rule 13a-16 Or 15d-16 Of The Securities Exchange Act Of 1934 For the month of November 2022 Commission File Number: 001-41035 CI&T Inc (Exact Name of Registrant as Specified in its Charter) N/A (Translation of registrant's name into English) R. Dr. Ricardo Benetton Martins, 1,000 Pólis de Tecnologia-Prédio 23B, Campinas-State of São Paulo 13086-902 - Brazil +55 19 21024500 (Address o ...

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | 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 ...