[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 ...

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 August 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 of ...

CI&T, Inc. (NYSE:CINT) Q1 2022 Earnings Conference Call May 19, 2022 8:00 AM ET Company Participants Eduardo Galvao - Head of Investor Relations Cesar Gon - Chief Executive Officer Stanley Rodrigues - Chief Financial Officer Bruno Guicardi - Director of Operations Conference Call Participants Ashwin Shirvaikar - Citibank Puneet Jain - JPMorgan Arturo Langa - Itau Jason Kupferberg - Bank of America Eduardo Galvao Good morning, everyone. Welcome to CI&T First Quarter 2022 Results Conference Call. I am Eduardo ...

[PART I](index=5&type=section&id=PART%20I) [Presentation of Financial and Other Information](index=5&type=section&id=PRESENTATION%20OF%20FINANCIAL%20AND%20OTHER%20INFORMATION) This section outlines the basis for the financial statements and other information presented, prepared under IFRS with Brazilian Reais (R$) as presentation currency - CI&T Inc is a Cayman Islands exempted company incorporated on June 7, 2021, which became the ultimate holding company of the group following a corporate reorganization in November 2021[13](index=13&type=chunk) - The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, with the Brazilian real (R$) as the functional and presentation currency[12](index=12&type=chunk)[13](index=13&type=chunk) - The report presents several non-IFRS financial measures, including Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Profit, and Net Revenue at Constant Currency, which management believes provide supplemental measures of core operational performance[16](index=16&type=chunk) [Key Information](index=11&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details significant investment risks, including client concentration, competition, talent retention, and the dual-class share structure [D. Risk factors](index=11&type=section&id=D.%20Risk%20factors) The company faces substantial risks from client concentration, intense competition, talent retention, geopolitical events, and material weaknesses in internal controls - Significant client concentration risk exists, with the top client accounting for **20% of net revenue** and the top ten clients accounting for **63% of net revenue in 2021**[53](index=53&type=chunk) - The company faces intense competition from digital transformation providers like Globant and EPAM, as well as traditional IT services companies like Accenture and Cognizant[65](index=65&type=chunk) - Material weaknesses in internal control over financial reporting have been identified, specifically related to general information technology controls (GITCs) and the review of manual journal entries[42](index=42&type=chunk)[104](index=104&type=chunk) - The dual-class share structure concentrates voting control with Class B shareholders, who hold ten votes per share compared to one vote per Class A share, limiting the influence of public shareholders on corporate matters[50](index=50&type=chunk)[136](index=136&type=chunk) - The business is subject to geopolitical risks, including potential adverse effects from the military conflict between Russia and Ukraine and the resulting economic sanctions[33](index=33&type=chunk)[57](index=57&type=chunk) [Information on the Company](index=47&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides a comprehensive overview of CI&T's business, history, structure, and strategic acquisitions, including its service model and market position [A. History and Development of the Company](index=47&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 1995 in Brazil, CI&T has grown into a global digital transformation specialist through strategic investments and acquisitions, including its 2021 NYSE IPO - In 2019, funds managed by Advent International made a strategic minority investment, enabling the company to accelerate its global growth strategy[151](index=151&type=chunk) - The company completed its initial public offering (IPO) on November 10, 2021, with its Class A common shares trading on the NYSE under the symbol 'CINT'[151](index=151&type=chunk) - CI&T has pursued strategic acquisitions to fuel growth, including Dextra Investimentos S.A. in Brazil (closed August 2021) and Somo Global Ltd in the EMEA region (closed January 2022)[151](index=151&type=chunk)[153](index=153&type=chunk) [B. Business Overview](index=48&type=section&id=B.%20Business%20Overview) CI&T provides end-to-end digital transformation services to large enterprises, operating with a 'Growth Unit' and 'Squads' model, demonstrating strong client retention - CI&T operates in the global digital transformation services market, which IDC forecasts will reach **US$958 billion** in annual spending by 2024[153](index=153&type=chunk) - The company's delivery model is structured around autonomous 'Growth Units' of approximately **400 people**, which are further broken down into 'Squads' of about **10 people** dedicated to specific clients or projects[153](index=153&type=chunk) - The company has demonstrated strong client relationships and expansion, with a five-year average Net Revenue Retention Rate of **120%**[155](index=155&type=chunk)[178](index=178&type=chunk) Net Revenue by Industry Vertical (2021 vs 2020) | By Industry Vertical | 2021 (in thousands of R$) | 2021 (%) | 2020 (in thousands of R$) | 2020 (%) | | :--- | :--- | :--- | :--- | :--- | | Financial Services | 487,177 | 34% | 324,118 | 34% | | Food and Beverages | 340,709 | 24% | 244,590 | 26% | | Pharmaceuticals and Cosmetics | 206,375 | 14% | 134,763 | 14% | | Technology, Media and Telecom | 169,311 | 12% | 81,961 | 9% | | Retail and Manufacturing | 93,871 | 7% | 83,046 | 9% | | Education and Services | 64,336 | 5% | 41,323 | 4% | | Others | 82,600 | 6% | 46,718 | 5% | | **Total Net revenue** | **1,444,380** | **100%** | **956,519** | **100%** | Client Concentration (2021 vs 2020) | Client Concentration | 2021 (in thousands of R$) | 2021 (%) | 2020 (in thousands of R$) | 2020 (%) | | :--- | :--- | :--- | :--- | :--- | | Top Client | 283,311 | 20% | 190,599 | 20% | | Top Ten Clients | 913,890 | 63% | 644,722 | 67% | | **Total Net revenue** | **1,444,380** | | **956,519** | | [C. Organizational Structure](index=60&type=section&id=C.%20Organizational%20Structure) CI&T Inc., a Cayman Islands holding company, became the indirect parent of CI&T Brazil through a U.S. subsidiary following a corporate reorganization prior to its 2021 IPO - The current corporate structure was established through a series of contributions prior to the IPO, resulting in CI&T Inc. (Cayman Islands) holding CI&T Delaware LLC (USA), which in turn holds CI&T Brazil[199](index=199&type=chunk) [Operating and Financial Review and Prospects](index=62&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes CI&T's financial performance, highlighting 2021 revenue growth driven by client expansion and acquisitions, alongside a slight net profit decrease due to increased expenses [A. Operating Results.](index=62&type=section&id=A.%20Operating%20Results.) In 2021, net revenue grew **51%** to **R$1.44 billion**, but net profit decreased **1%** to **R$126.0 million** due to higher operating expenses and acquisition-related costs Consolidated Results of Operations (2021 vs. 2020) | Metric | 2021 (in thousands of R$) | 2020 (in thousands of R$) | Change (%) | | :--- | :--- | :--- | :--- | | Net revenue | 1,444,380 | 956,519 | 51% | | Gross Profit | 508,648 | 355,653 | 43% | | Operating profit | 244,606 | 208,244 | 17% | | Net profit for the year | 125,957 | 127,654 | (1)% | - Net revenue growth in 2021 was driven by a **128% Net Revenue Retention rate**, the addition of **36 new clients** with over **R$1.0 million** in revenue, and a **R$107 million** contribution from the Dextra acquisition[215](index=215&type=chunk) - Operating expenses increased by **79%** in 2021, mainly due to higher employee expenses from new hires, M&A consulting fees, and a **R$21.9 million** impairment charge on intangible assets related to the Dextra acquisition[223](index=223&type=chunk)[224](index=224&type=chunk)[227](index=227&type=chunk) Non-IFRS Financial Measures (2021 vs. 2020) | Metric | 2021 (in thousands of R$) | 2020 (in thousands of R$) | | :--- | :--- | :--- | | Adjusted Gross Profit | 542,463 | 379,877 | | Adjusted Gross Profit Margin | 37.6% | 39.7% | | Adjusted EBITDA | 324,081 | 237,917 | | Adjusted EBITDA Margin | 22.4% | 24.9% | | Adjusted Net Profit | 157,029 | 128,082 | | Adjusted Net Profit Margin | 10.9% | 13.4% | [B. Liquidity and Capital Resources](index=76&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) As of December 31, 2021, the company maintained strong liquidity with **R$934.5 million** in cash and investments, despite significant cash usage for acquisitions and debt financing Cash and Financial Investments (as of Dec 31, 2021) | Item | Amount (in thousands of R$) | | :--- | :--- | | Cash and cash equivalents | 135,727 | | Financial investments | 798,786 | | **Total** | **934,513** | Consolidated Cash Flow Summary (FY 2021) | Cash Flow Activity | Amount (in thousands of R$) | | :--- | :--- | | Net cash from operating activities | 132,379 | | Net cash used in investing activities | (1,507,544) | | Net cash from financing activities | 1,376,766 | - Total outstanding consolidated indebtedness was **R$788.7 million** as of December 31, 2021, an increase of **R$699.5 million** from 2020, mainly to finance the Dextra acquisition[273](index=273&type=chunk) - Capital expenditures in 2021 were **R$29.9 million**, primarily for IT equipment and software investments to support company growth[276](index=276&type=chunk) [E. Critical Accounting Policies and Estimates](index=79&type=section&id=E.%20Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies involve significant judgment in lease term determination, revenue recognition, and fair value measurement in business combinations - Significant judgments are made in determining lease terms, specifically whether the company is reasonably certain to exercise extension options[280](index=280&type=chunk) - A key area of estimation uncertainty is the measurement of fair value for assets acquired and liabilities assumed in business combinations, as demonstrated in the Dextra acquisition[281](index=281&type=chunk) [Directors, Senior Management and Employees](index=81&type=section&id=ITEM%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's seven-member board, executive compensation, and significant employee growth to **5,564** in 2021, with a **15.6%** voluntary attrition rate - The Board of Directors is composed of seven members, including three independent directors: Silvio Romero de Lemos Meira, Maria Helena dos Santos Fernandes de Santana, and Eduardo Campozana Gouveia[286](index=286&type=chunk) - Aggregate compensation for the board of directors and executive officers for the year ended December 31, 2021, was **R$11.1 million**[294](index=294&type=chunk) Employee Headcount by Geography | Region | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | North America & Europe | 210 | 145 | 110 | | Latin America (Brazil) | 5,139 | 2,910 | 2,090 | | Asia Pacific and Japan | 215 | 164 | 150 | | **Total** | **5,564** | **3,219** | **2,350** | - The company's voluntary employee attrition rate for the period 2020 through 2021 was **15.6%** (excluding employees with less than six months of tenure)[303](index=303&type=chunk) [Major Shareholders and Related Party Transactions](index=87&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section outlines CI&T's dual-class share structure, concentrating **92.9%** of voting power with founders and Advent, and details the Shareholders' Agreement Major Shareholders and Voting Power | Shareholder | Class B Shares | % of Class B | % of Total Voting Power | | :--- | :--- | :--- | :--- | | Cesar Nivaldo Gon (Founder) | 23,303,273 | 19.9% | 19.6% | | Fernando Matt Borges Martins (Founder) | 22,722,913 | 19.4% | 19.1% | | Bruno Guiçardi Neto (Founder) | 15,298,381 | 13.0% | 12.9% | | Advent Managed Fund LLCs | 49,081,192 | 41.9% | 41.3% | - Due to the dual-class structure (10 votes per Class B share), the holders of Class B common shares (Founders and Advent) collectively control approximately **92.9%** of the total voting power[305](index=305&type=chunk)[314](index=314&type=chunk) - A Shareholders' Agreement is in place, granting the Founders the right to appoint a majority of the board of directors and giving Advent the right to appoint directors based on its voting power percentage[316](index=316&type=chunk) [Financial Information](index=90&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section confirms the inclusion of consolidated financial statements, notes no material legal proceedings, and states the company's policy of retaining earnings for growth instead of paying dividends - The company is not presently a party to any legal proceedings that would have a material adverse effect on its business[322](index=322&type=chunk) - CI&T has not adopted a dividend policy and does not anticipate paying cash dividends in the foreseeable future, intending to retain earnings for business development and expansion[323](index=323&type=chunk) - The company's Brazilian subsidiary is required by local law to distribute a mandatory minimum dividend of at least **25%** of its adjusted net income for the prior year[325](index=325&type=chunk) [Additional Information](index=92&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION.) This section details CI&T's corporate governance, dual-class share structure with Class B shares having ten votes and preemptive rights, and anti-takeover provisions - The company has a dual-class share structure: Class A common shares with one vote per share and Class B common shares with ten votes per share[334](index=334&type=chunk)[340](index=340&type=chunk) - Each Class B common share is convertible into one Class A common share at the holder's option or automatically upon most transfers, and all Class B shares will automatically convert if their total number falls below **10%** of total outstanding shares[344](index=344&type=chunk) - Holders of Class B shares have preemptive rights to purchase additional Class B shares in new issuances to maintain their proportional ownership, subject to the consent of a majority of Class B shareholders[343](index=343&type=chunk) - The Articles of Association include anti-takeover provisions, such as the dual-class voting structure and the board's authority to issue preferred shares with special rights without shareholder approval[371](index=371&type=chunk)[374](index=374&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=111&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to credit, interest rate, and significant foreign currency exchange rate risks, which are partially hedged using derivative financial instruments - The company's primary market risk is foreign currency exchange rate risk, as most revenue is in foreign currency (mainly USD) while most expenses are in Brazilian Reais (BRL)[416](index=416&type=chunk) - As of December 31, 2021, the company's net exposure to USD was **R$725.4 million**[416](index=416&type=chunk)[770](index=770&type=chunk) Sensitivity Analysis for Interest Rate Risk (Effect on Earnings) | Scenario | Probable | Adverse | Remote | | :--- | :--- | :--- | :--- | | **Effect on earnings (reduction in R$ thousands)** | **(8,367)** | **(12,763)** | **(17,160)** | Sensitivity Analysis for Exchange Rate Risk (Effect on Earnings) | Scenario | Probable (USD/BRL 5.30) | Adverse (USD/BRL 5.50) | Remote (USD/BRL 5.70) | | :--- | :--- | :--- | :--- | | **Effect on earnings (increase/(decrease) in R$ thousands)** | **303** | **88** | **(357)** | [PART II](index=116&type=section&id=PART%20II) [Controls and Procedures](index=118&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls were ineffective as of December 31, 2021, due to material weaknesses in IT and manual journal entry controls, with a remediation plan underway - Management concluded that disclosure controls and procedures were ineffective as of December 31, 2021, due to material weaknesses in internal control over financial reporting[439](index=439&type=chunk) - Two material weaknesses were identified: 1) Ineffective design and implementation of general information technology controls (GITCs) related to user access, and 2) Ineffective design and implementation of formal controls for the review of manual journal entries[441](index=441&type=chunk) - A remediation plan is underway, involving the implementation of new access management processes, a privileged access management (PAM) tool, and automated preventive controls for journal entries within the ERP system, which were implemented in February 2022 and will be monitored for effectiveness[441](index=441&type=chunk) [PART III](index=123&type=section&id=PART%20III) [Financial Statements](index=124&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents CI&T's audited consolidated financial statements for the three years ended December 31, 2021, prepared under IFRS, including notes on corporate restructuring and acquisitions Consolidated Statement of Financial Position (Abridged) | (in thousands of R$) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **2,362,344** | **585,082** | | Total Current Assets | 1,450,905 | 434,552 | | Total Non-Current Assets | 911,439 | 150,530 | | **Total Liabilities and Equity** | **2,362,344** | **585,082** | | Total Current Liabilities | 548,973 | 310,992 | | Total Non-Current Liabilities | 724,076 | 75,630 | | **Total Equity** | **1,089,295** | **198,460** | Consolidated Statement of Profit or Loss (Abridged) | (in thousands of R$) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | :--- | | Net revenue | 1,444,380 | 956,519 | 677,133 | | Gross profit | 508,648 | 355,653 | 228,154 | | Operating profit | 244,606 | 208,244 | 91,699 | | **Net profit for the year** | **125,957** | **127,654** | **56,569** | - The acquisition of Dextra Group on August 10, 2021, involved a total consideration of **R$783.6 million** and resulted in the recognition of **R$595.7 million** in goodwill[635](index=635&type=chunk)[650](index=650&type=chunk) - Subsequent to year-end, on January 27, 2022, the company completed the acquisition of Somo Global Ltd for **R$341 million** in cash and **225,649 Class A common shares**, plus a potential earn-out[815](index=815&type=chunk)

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | click the screen to play video 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.C ...

CI&T, Inc. (NYSE:CINT) Q4 2021 Earnings Conference Call March 10, 2022 8:00 AM ET Company Participants Cesar Gon – Founder & Chief Executive Officer Bruno Guicardi – Founder & NAE President Stanley Rodrigues – Partner, Chief Financial Officer Eduardo Galvão – Head of Investor Relations Conference Call Participants Ashwin Shirvakar – CITI Diego Aragao – Goldman Sachs Puneet Jain – JP Morgan Arturo Lang – Itau Rodrigo Gastim – Clave Capital Eduardo Galvão [Video Presentation] Since the 1990's, companies have ...