CI&T Reports Strong Fourth Quarter 2021 and Full Year Financial Results

NEW YORK--(BUSINESS WIRE)-- CI&T (NYSE: CINT, “Company”), a global digital specialist, today announces its unaudited results for the fourth quarter of 2021 (4Q21) and audited results for the year ended December 31, 2021 (2021), in accordance with International Standards on Auditing (ISAs). 4Q21 and 2021 financial results are presented in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the fourth quarter of 2020 (4Q20) and for the year ended December 31, 2020 (2020).

4Q21 Operating and Financial Highlights

• Net revenue reached R$456.8 million, a 72% growth compared to 4Q20.
• Net revenue growth in constant currency was 69% over 4Q20.
• Net profit was R$43.8 million, 49% higher than 4Q20.
• Adjusted EBITDA was R$101.8 million, with an adjusted EBITDA margin of 22.3%.
• Adjusted net profit totaled R$47.7 million, 62% higher than the same quarter of 2020.

2021 Operating and Financial Highlights

• Net revenue was R$1,444.4 million in 2021, up 51.0% year-over-year.
• Pro forma net revenue of R$1,617.4 million, 39.4% higher than in 2020.
• Pro forma net profit for the year was R$129.0 million, up 13% compared to 2020.
• Pro forma adjusted EBITDA was R$380.5 million, with an adjusted EBITDA margin of 23.5%.
• Pro forma adjusted net profit totaled R$160.1 million, equivalent to a pro forma adjusted net margin of 9.9%
• CI&T generated R$214.4 million in cash from operating activities, 37% higher compared to the amount of R$156.9 million recorded in 2020, and 66% cash-conversion from adjusted EBITDA.
• CI&T ended the year with 5,564 employees, a net addition of 2,345 employees in 2021.
• The number of clients with annual revenue above R$1 million grew from 58 in 2020 to 94 in 2021, a net addition of 36 new clients, and the net revenue retention rate (NRR) was 128% in 2021.

A word from our CEO

We are delighted to end 2021 with robust results, outperforming our growth guidance for the quarter and year in our first year-end as a public Company. Our net revenue grew 51% in 2021 year over year, with a solid adjusted EBITDA margin of 22.4%. This growth was boosted by higher demand from existing clients, the addition of new clients to our portfolio combined with our selective M&A strategy. We added 36 new clients with annual revenue above R$1 million, totaling 94 in 2021. Our top 10 client concentration reduced from 67% of our net revenue in 2020 to 54% in 2021. We are also providing strong growth guidance for 2022. What a great year, and I'm very proud of what we've done as CI&Ters, as a team.

It is worth looking back to understand how we will move forward: founded in 1995, CI&T has 27 years of consecutive growth and profitability. From 2006, the emblematic year we launched CI&T in the USA, to 2016, we had an organic CAGR of 30% in revenue. From 2016 on, we introduced three new growth forces: [1] a domain-driven Digital Strategy as a core component of our offering; [2] our Growth Unit business architecture, fostering a scalable entrepreneur organizational model; and [3] a programmatic approach for M&A as an enduring new capability focused on a flow of selective and strategic acquisitions. As a result of those moves, we are accelerating our annual growth pace: 41% in 2020, 51% in 2021, and guiding at least 56% in 2022. To operate at this new pace, we are constantly increasing our investments in hiring, training, and leadership development while keeping solid margins and cash conversion rates.

Now let's move our eyes forward. And yes, there are clouds in the sky: the global economy is yet to recover from a devastating pandemic, and we have a new set of geopolitical threads on the table. In parallel, "software continues to eat the world," enabling unprecedented and radical changes in society, values, and consumer behaviors. Digital is the answer to reconnect companies to a new breed of consumers. The result is a secular demand for digital services in the corporate world and an extraordinary opportunity for a decade of high growth for CI&T.

As CEO, my primary mission is to harmonize the interlinked needs of our stakeholders: we will increase our transformational impact through digital for our clients. And we will continue to do that by fostering meaningful and fast careers in a psychologically safe environment where people can fulfill their personal purpose and ambitions. Our talent density enables a long-term value creation journey for our shareholders by way of high growth and profitability. And for our communities is about solving complex human problems, fostering diversity and inclusion, and ESG in a broader perspective, concretely contributing to making a better world. It's the equation of building a company that makes sense through the lens of the future and not the past.

With these foundations, we are confident we are on the right track. Here is my special gratitude to all CI&Ters that provide this incredible environment of joy and accomplishment at CI&T. A warm thank you to all our clients, partners, investors, and stakeholders that believe in our audacious ambitions as a company.

Through hardships to the stars!
And stay safe.

Cesar Gon

Comments on the 4Q21 and 2021 financial performances

Net Revenue

Revenue (in BRL thousand)		4Q21		4Q20		Var. 4Q21 x 4Q20		2021		2020		Var. 2021 x 2020
Net Revenue		456,794		265,367		72.1%		1,444,380		956,519		51.0%

In 4Q21, net revenue was R$456.8 million, an increase of 72.1% compared to 4Q20, of which 40% was organic growth. Net revenue in constant currency grew 69% in the comparable period. This performance was attributed to our expansion of current contracts, combined with the addition in the quarter of 19 new clients with revenue above R$1.0 million in the last twelve months, from 75 to 94 clients.

In 2021, CI&T’s net revenue was R$1,444.4 million, an increase of 51.0% year-over-year. Net revenue growth in constant currency was 47.0% and the net revenue retention rate was 128% in 2021, demonstrating the recurrency and resilience of our business.

We reduced our top one and top 10 client concentration from 21% and 72% in 4Q20, respectively, to 16% and 54% in 4Q21, and we diversified our revenue breakdown by industry verticals. While all segments presented significant growth, Technology, Media and Telecom (TMT) and Retail and Manufacturing were the verticals that grew faster in terms of revenue from 4Q21 compared to 4Q20.

Net Revenue by industry - % in 4Q21			Net Revenue by client - % in 4Q21
Financial services	31%		Top Client	16%
Food and beverages	20%		Top 10 clients (ex-top 1)	38%
Pharmaceuticals and cosmetics	15%		Other Clients	46%
Technology, media and telecom	13%
Retail and manufacturing	8%
Education and services	5%
Others	8%

In terms of geography, Brazil and the U.S. continue to be our most relevant markets. The U.S. operation recorded the fastest growth rate of 50% organically in 4Q21 compared to 4Q20.

Net Revenue by geography - % in 4Q21
Brazil	50%
United States	45%
Asia	3%
Europe	1%

Cost of Services Provided

Gross Profit (in BRL thousand)		4Q21			4Q20			Var. 4Q21 x 4Q20			2021			2020			Var. 2021 x 2020
Net Revenue		456,794			265,367			72.1	%		1,444,380			956,519			51.0	%
Cost of Services		(294,746	)		(166,294	)		77.2	%		(935,732	)		(600,866	)		55.7	%
Gross Profit		162,048			99,073			63.6	%		508,648			355,653			43.0	%
Adjustments
Depreciation and amortization (cost of services provided)		8,764			5,995			46.2	%		31,884			24,085			32.4	%
Stock Options		1,582			76			1981.6	%		1,930			139			1288.5	%
Adjusted Gross Profit		172,394			105,144			64.0	%		542,462			379,877			42.8	%
Adjusted Gross Profit Margin		37.7	%		39.6	%		-1.9p.p			37.6	%		39.7	%		-2.2p.p

In 4Q21, the cost of services provided totaled R$294.7 million, an increase of 77.2% compared to 4Q20, and the gross profit was R$162.0 million. Eliminating the depreciation and amortization and stock option expenses, the adjusted gross profit in 4Q21 was R$172.4 million, with an adjusted gross profit margin of 37.7%.

In 2021, the cost of services provided was R$935.7 million, an increase of 55.7% compared to 2020, and the gross profit reached R$508.6 million. Adjusted gross profit totaled R$542.5 million, with an adjusted gross profit margin of 37.6%, compared to 39.7% in 2020. The decline in gross profit margins is explained mainly by employee promotions and compensation adjustments that were postponed during the first year of the pandemic, aligned with current market conditions and our continuous investments in our people to foster a higher pace of growth.

SG&A and Other Expenses

SG&A expenses (in BRL thousand)		4Q21			4Q20			Var. 4Q21 x 4Q20			2021			2020			Var. 2021 x 2020
Selling		(27,752	)		(25,815	)		7.5	%		(89,654	)		(65,093	)		37.7	%
General and administrative		(58,685	)		(22,861	)		156.7	%		(151,681	)		(81,161	)		86.9	%
SG&A expenses		(86,437	)		(48,676	)		77.6	%		(241,335	)		(146,254	)		65.0	%
Other income (expenses) net(1)		1,716			(538	)		-			(22,210	)		(959	)		2216.0	%
Impairment loss on trade receivables and contract assets		1,533			(191	)		-			(497	)		(196	)		153.6	%
SG&A and other operating expenses		(83,188	)		(49,405	)		68.4	%		(264,042	)		(147,409	)		79.1	%
(1)Include Research and technological innovation expenses

Selling, General and Administrative (SG&A) expenses grew 77.6% in 4Q21 compared to 4Q20, mainly due to (i) an increase in people expenses, associated with new hires and the strengthening of the Human Resources, Finance, Administrative and Legal teams, (ii) IPO, M&A and accounting advisory services and related expenses and (iii) higher depreciation and amortization expenses due to the recognition of intangible assets related to the acquisition of Dextra. These incremental expenses are mainly related to M&A activities and to the IPO, which occurred in November 2021. In 2021, SG&A expenses grew 65.0% in relation to 2020, due to the same reasons explained above.

Other net expenses in 2021 totaled R$22.2 million, due to the impairment of intangible assets in the amount of R$21.9 million recorded in 3Q21, a non-cash and one-off effect that are not related to Dextra core ongoing services and shall not impact CI&T nor Dextra operations going forward.

EBITDA and Adjusted EBITDA

EBITDA (in BRL thousand)		4Q21			4Q20			Var. 4Q21 x 4Q20			2021			2020			Var. 2021 x 2020
Net profit for the period		43,828			29,401			49.1	%		125,957			127,654			-1.3	%
(+) Net financial expense		8,130			1,417			473.7	%		34,232			15,453			121.5	%
(+) Income tax expense		26,902			18,850			42.7	%		84,417			65,137			29.6	%
(+) Depreciation and amortization		18,251			7,429			145.7	%		48,354			29,882			61.8	%
EBITDA		97,111			57,097			70.1	%		292,960			238,126			23.0	%
EBITDA Margin		21.3	%		21.5	%		-0.3p.p			20.3	%		24.9	%		-4.6p.p
Adjustments
Stock Options		1,838			201			814.4	%		2,531			934			171.0	%
Consulting expenses (1)		3,821			108			3438.0	%		9,177			428			2044.2	%
Government grants		(1,063	)		(253	)		320.2	%		(2,481	)		(1,571	)		57.9	%
Impairment		77			0			0.0	%		21,895			0			-
Adjusted EBITDA		101,784			57,153			78.1	%		324,082			237,917			36.2	%
Adjusted EBITDA Margin		22.3	%		21.5	%		0.7p.p			22.4	%		24.9	%		-2.4p.p
(1)Include R$18 thousand from indemnity expenses in 4Q20 and 2020

In 4Q21, EBITDA was R$97.1 million, 70.1% higher than 4Q20. Adjusted EBITDA in the quarter was R$101.8 million, an increase of 78.1% compared to 4Q20. Adjusted EBITDA margin was 22.3% in 4Q21, slightly above the adjusted EBITDA margin of 21.5% reported in 4Q20.

The reported EBITDA in 2021 was R$293.0 million, an increase of 23% in relation to 2020. Adjusted EBITDA was R$324.1 million, 36.2% higher than in 2020. Adjusted EBITDA margin was 22.4% in 2021, below the level of 24.9% reported in 2020, when the result benefited from lower costs and expenses during the first year of the pandemic.

Net Financial Expenses

Net financial expenses was R$8.1 million in 4Q21, compared to R$1.4 million in 4Q20, mainly due to new debt in the amount of R$650 million incurred by the Company in July to finance the Dextra acquisition, which will mature in 2026. In 2021, net financial expenses totaled R$34.2 million, an increase in relation to the R$15.4 million expense in 2020. Interest on loans increased from R$10.3 million in 2020 to R$29.7 million in 2021 due to the increase in the gross debt position, as explained above, combined with the increase in interest rates (CDI) during the year. Income from financial investments grew from R$2.6 million in 2020 to R$4.3 million in 2021.

Depreciation and Amortization

Depreciation and amortization expenses totaled R$18.3 million in 4Q21, an increase of R$10.8 million compared to 4Q20. In 2021, depreciation and amortization expenses reached R$48.3 million, compared to R$29.9 million in 2020, mainly due to the recognition of intangible assets related to the acquisition of Dextra in 2021 in the amount of R$148.5 million from customer relationships, non-compete agreement and brands.

In addition, the Company recognized R$595.7 million in goodwill from the acquisition of Dextra, which is expected to be deductible for tax purposes, considering the merger of Dextra and CI&T that occurred on December 2021.

Net Profit and Adjusted Net Profit

Net Profit (in BRL thousand)		4Q21			4Q20			Var. 4Q21 x 4Q20			2021			2020			Var. 2021 x 2020
Net profit(loss) for the period		43,828			29,401			49.1	%		125,957			127,654			-1.3	%
Adjustments
Consulting expenses (1)		3,821			108			3438.0	%		9,177			428			2044.2	%
Impairment		77			0			0.0	%		21,895			0			-
Adjusted Net Profit		47,726			29,509			61.7	%		157,029			128,082			22.6	%
Adjusted Net Profit Margin		10.4	%		11.1	%		-0.7p.p			10.9	%		13.4	%		-2.5p.p
(1)Include R$18 thousand from indemnity expenses in 4Q20 and 2020

In 4Q21, net profit was R$43.8 million, 49.1% higher than 4Q20. Adjusted net profit reached R$47.7 million, an increase of 61.7% compared to 4Q20. The adjusted net profit margin reduced slightly from 11.1% in 4Q20 to 10.4% in 4Q21, mainly due to higher depreciation and amortization and financial expenses, as explained above.

In 2021, net profit totaled R$125.9 million, 1.3% lower than in 2020. The adjusted net profit was R$157.0 million, 22.6% higher than in 2020. The adjusted net profit margin was 10.9% in 2021, a reduction of the level observed in 2020, explained mainly by the increase in the cost of service provided and higher expenses with depreciation and amortization and financial expenses.

Cash Flow from Operations

In 2021, CI&T generated R$214.4 million in cash from operating activities, 37% higher compared to the amount of R$156.9 million recorded in 2020. Deducting payment for income tax and interest on loans, borrowings and leasing, net cash from operating activities was R$132.4 million, an increase of R$31.4 million in relation to 2020.

Investments on acquisition of property, plant and equipment and intangible assets represented R$29.9 million in 2021 and R$21.4 million in 2020, and are mainly related to IT equipments for the growing number of employees.

Indebtedness

CI&T ended December 31, 2021 with a financial net cash position of R$145.8 million, composed of a gross debt position of R$788.7 million and R$934.5 million in cash, cash equivalents and financial investments, including the net proceeds of our IPO. Lease liabilities amounted to R$81.9 million at the end of the quarter. Currently, 34% of the total debt is USD denominated and 66% is denominated in Brazilian Reais, which is linked to the Brazilian interest rate, CDI.

Business Outlook

We expect our net revenue in the first quarter of 2022 to be at least R$485.0 million, a 64% growth compared to our net revenue of R$ 296.3 million in the first quarter of 2021.

For the full year of 2022, we expect our net revenue to be at least R$2,250 million or USD433 million, a 56% growth compared to our net revenue of R$1,444 million in 2021. In addition, we estimate our adjusted EBITDA to be at least 20% for the full year of 2022. This guidance for 2022 assumes an average exchange rate of 5.20 Brazilian Reais to the U.S. dollar for the full year.

These expectations are forward-looking statements and actual results may differ materially. See "Cautionary Statement on Forward-Looking Statements" below.

Pro forma financial highlights, including the Dextra acquisition as if the acquisition had occurred on January 1, 2021

• Pro forma net revenue of R$1,617.4 million, 39.4% higher than in 2020.
• Pro forma net profit for the year was R$129.0 million
• Pro forma adjusted EBITDA was R$380.5 million, with an adjusted EBITDA margin of 23.5%.
• Pro forma adjusted net profit totaled R$160.1 million, equivalent to an adjusted net margin of 9.9%

Pro Forma Income Statement (in BRL thousand)		2021			2020			Var. 2021 x 2020
Net Revenue		1,617,339			1,160,555			39.4	%
Costs of services provided		(1,038,939	)		(717,701	)		44.8	%
Gross Profit		578,400			442,854			30.6	%
SG&A		(277,293	)		(210,678	)		31.6	%
Other income (expenses) net (1)		(23,499	)		(1,047	)		-
Operating profit before financial income		277,608			231,129			20.1	%
Net finance expense		(64,654	)		(58,825	)		9.9	%
Profit before Income tax		212,954			172,304			23.6	%
Income tax expense		(83,910	)		(57,702	)		45.4	%
Net profit for the year		129,044			114,602			12.6	%
(1) includes impairment loss on trade receivables and contract assets and research and technological innovation expenses.

Pro Forma Non-IFRS Financial Measures (Unaudited)

Please refer to the appendix for non-IFRS financial adjustments.

Pro Forma (in BRL thousand)		2021			2020			Var. 2021 x 2020
Adjusted Gross Profit		617,334			471,584			30.9	%
EBITDA		349,387			295,716			18.1	%
Adjusted EBITDA		380,509			296,767			28.2	%
Adjusted EBITDA Margin		23.5	%		25.6	%		-2.0
Adjusted Net Profit		160,116			116,290			37.7	%
Adjusted Net Profit Margin		9.9	%		10.0	%		-0.1

The unaudited pro forma condensed statements of profit or loss for the year ended December 31, 2021 is based on (a) the audited consolidated statements of profit or loss of CI&T Inc for the year ended December 31, 2021; and (b) the unaudited financial information of Dextra Tecnologia for the period from January 1, 2021 to August 9, 2021 and gives effect on a pro forma basis to the Dextra Acquisition as if it had been consummated on January 1, 2021.

The transaction accounting adjustments totaled a negative effect of R$28.8 million in the pro forma net income in 2021, and it relates to (a) amortization expense of intangible assets (customer relationship, brand and non-compete agreement), (b) estimated interest expenses on the new debt to finance the Dextra acquisition, and (c) expected income taxes based on the pro forma adjustments. Please refer to the table Pro Forma - Statement of profit and loss (Unaudited) below.

Conference Call and Webcast Information

Cesar Gon, Bruno Guicardi, Stanley Rodrigues and Eduardo Galvão will host a video conference call to discuss the 4Q21 and 2021 financial and operating results on March 10 at 8:00 a.m. Eastern Time / 10:00 a.m. BRT. The earnings call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or at the following link:

http://investors.ciandt.com/investors-info/events-and-presentations/CIT-4Q21-Earnings-Call.

About CI&T

CI&T is a global digital specialist, a partner in end-to-end digital transformation for 100+ Large Enterprises & Fast Growth Clients. As digital natives, we bring a 27-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in 8 countries with a nearshore delivery model, CI&T is the Employer of Choice for more than 5,500 professionals in strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience, and driving operational efficiency.

Basis of accounting and functional currency

CI&T maintains its books and records in Brazilian reais, the presentation currency for its audited consolidated financial statements, and the functional currency of our operations in Brazil. CI&T prepares its audited consolidated financial statements in accordance with IFRS, as issued by the IASB.

Non-IFRS Financial Measures

We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit for the period, Adjusted Net Profit Margin for the period, Net Revenue at Constant Currency and Net Revenue Increase at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of the historical and current financial performance of our operations. Please refer to the previous pages for reconciliations and explanation of the reconciliation items for Non-IFRS measures and see appendix below "Reconciliation of Non-IFRS measures Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1, 2021" for reconciliations of our Non-IFRS measures to the nearest IFRS measure.

We monitor our net revenue at constant currency and net revenue increase at constant currency. As the impact of foreign currency exchange rates is highly volatile and difficult to predict, we believe Net Revenue at Constant Currency and Net Revenue Increase at Constant Currency allow us to better understand the underlying business trends and performance of our ongoing operations on a period-over-period basis by eliminating the effect of fluctuations in the exchange rates we use in the translation of our Net revenue in foreign currencies into Brazilian reais.

CI&T is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted EBITDA to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, stock-based compensation expense, acquisition-related charges, the tax effect of non-IFRS adjustments and other items. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

In calculating Adjusted Gross Profit, we exclude cost components that are not related to the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock options compensation plan expenses.

In calculating Adjusted EBITDA, we exclude components that are not related to the direct management of our services. For the periods herein, the adjustments were: (i) consulting expenses related to corporate reorganization and initial public offering expenses, as well as mergers and acquisitions activity; (ii) government grants related to tax reimbursement in the Chinese subsidiary; (iii) stock options compensation plan expenses; and (iv) the impairment related to the discontinuation of certain investments made by Dextra on certain in progress intangible assets related to digital platforms following the closing of the Dextra acquisition. CI&T does not expect a continuing impact in its operations related to this impairment.

In calculating Adjusted Net Profit, we exclude cost components that are not related to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to corporate reorganization and initial public offering costs, as well as mergers and acquisitions activity; and (ii) the impairment related to the discontinuation of certain investments made by Dextra on certain in progress intangible assets related to digital platforms following the closing of the Dextra acquisition. CI&T does not expect a continuing impact in its operations related to this impairment.

We calculate Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange rates from the prior period. Net Revenue Retention Rate is calculated by dividing Net revenue, less Net revenue generated from new clients in a given year, over Net revenue from the previous year. Cash conversion rate is calculated by dividing cash generated from operating activities over adjusted EBITDA.

Cautionary Statement on Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” "scheduled,” “forecasts” and similar words are intended to identify estimates and forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. 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 differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate Dextra; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's registration statement on Form F-1. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC. Except as required by law, CI&T assumes no obligation and does not intend to update these forward-looking statements or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Consolidated statement of profit and loss, including Dextra as of August 10, 2021
(in BRL thousand)
	Three months ended December 31,						Full year ended December 31,
	2021			2020			2021			2020
Net Revenue	456,794			265,367			1,444,380			956,519
Costs of services provided	(294,746	)		(166,294	)		(935,732	)		(600,866	)
Gross Profit	162,048			99,073			508,648			355,653
Selling expenses	(27,752	)		(25,815	)		(89,654	)		(65,093	)
General and administrative expenses	(58,685	)		(22,861	)		(151,681	)		(81,161	)
Research and technological innovation expenses	-			(810	)		(4	)		(3,462	)
Impairment loss on trade receivables and contract assets	1,533			(191	)		(497	)		(196	)
Other income (expenses) net	1,716			272			(22,206	)		2,503
Operating profit before financial income and tax	78,860			49,668			244,606			208,244
Finance income	26,395			14,957			69,816			47,808
Finance cost	(34,525	)		(16,374	)		(104,048	)		(63,261	)
Net finance expense	(8,130	)		(1,417	)		(34,232	)		(15,453	)
Profit before Income tax	70,730			48,251			210,374			192,791
Income tax expense
Current	(32,008	)		(24,434	)		(95,375	)		(66,912	)
Deferred	5,106			5,584			10,958			1,775
Net profit for the year	43,828			29,401			125,957			127,654
Income attributable to:
Controlling shareholders	-			-			125,957			127,654
Non-controlling interests	-			-			-			-
Earnings per share
Earnings per share – basic (in R$)	-			-			1.03			1.06
Earnings per share – diluted (in R$)	-			-			1.01			1.04

Consolidated statements of financial position
(in BRL thousand)
Assets		December 31, 2021		December 31, 2020			Liabilities and equity		December 31, 2021		December 31, 2020
Cash and cash equivalents		135,727		162,827			Suppliers and other payables		33,566		15,312
Financial Investments		798,786		-			Loans and borrowings		164,403		75,377
Trade receivables		340,519		196,256			Lease liabilities		21,214		14,569
Contract assets		134,388		50,625			Salaries and welfare charges		234,173		141,794
Recoverable taxes		7,785		1,016			Accounts payable for business combination		48,923		-
Tax assets		2,810		2,117			Derivatives		535		5,392
Derivatives		896		8,837			Tax liabilities		13,345		6,078
Other assets		29,994		12,874			Other taxes payable		5,423		3,279
Total current assets		1,450,905		434,552			Dividends and interest on equity payable		-		30,677
							Contract liability		13,722		9,987
							Indemnity		-		628
Recoverable taxes		3,046		3,099			Other liabilities		13,669		7,899
Deferred tax		31,989		15,152			Total current liabilities		548,973		310,992
Judicial deposits		3,079		3,083
Other assets		2,974		2,494			Loans and borrowings		624,306		13,853
Property, plant and equipment		57,721		38,771			Lease liabilities		60,674		60,659
Intangible assets		738,803		18,166			Provisions		633		161
Right-of-use assets		73,827		69,765			Accounts payable for business combination		36,803		-
Total non-current assets		911,439		150,530			Other liabilities		1,660		957
							Total non-current liabilities		724,076		75,630
							Equity
							Share capital		36		68,968
							Share premium		915,947		-
							Capital reserves		10,105		6,764
							Profit reserves		125,957		109,308
							Other comprehensive income		37,250		13,420
							Total equity		1,089,295		198,460
Total assets		2,362,344		585,082			Total equity and liabilities		2,362,344		585,082

Cash Flow Statement
(in BRL thousand)
		December 31, 2021			December 31, 2020
Cash flow from operating activities
Net profit for the year		125,957			127,654
Adjustments for:
Depreciation and amortization		48,354			29,882
Gain/loss on the sale of property, plant and equipment and intangible assets		1,237			689
Interest, monetary variation and exchange rate changes		45,627			7,789
Interest on accounts payable for business combinations		3,091			-
Interest on lease		6,369			5,023
Unrealized loss (gain) on financial instruments		3,084			(2,512	)
Income tax expenses		84,417			65,137
Impairment losses on trade receivables		280			414
Provision for (reversal of) impairment losses on trade receivables and contract assets		217			(218	)
Write-off of intangible assets		21,894			-
Provision for labor risks		472			(12	)
Provision for indemnity		-			(18	)
Share-based plan		2,531			942
Exchange rate changes on indemnity		-			(4,324	)
Others		98			469
Variation in operating assets and liabilities
Trade receivables		(102,300	)		(47,848	)
Contract assets		(52,876	)		(8,339	)
Other taxes recoverable		(13,806	)		461
Tax assets		(91	)		507
Judicial deposits		4			-
Suppliers		12,215			6,746
Salaries and welfare charges		63,083			49,086
Tax liabilities		(17,364	)		(12,275	)
Other taxes payable		1,698			(407	)
Contract liabilities		1,922			(7,138	)
Payment of share-based indemnity		(628	)		(43,354	)
Other receivables and payables, net		(21,054	)		(11,435	)
Cash generated from operating activities		214,431			156,919
Income tax paid		(64,150	)		(47,044	)
Interest paid on loans and borrowings		(12,149	)		(3,880	)
Interest paid on lease		(5,753	)		(5,023	)
Net cash from operating activities		132,379			100,972
Cash flows from investment activities:
Acquisition of property, plant and equipment and intangible assets		(29,907	)		(21,391	)
Financial investment application		(784,915	)		-
Acquisition of subsidiary net of cash acquired		(692,722	)		-
Net cash used in investment activities		(1,507,544	)		(21,391	)
Cash flow from financing activities:
Share-based plan contributions		1,282			-
Issuance of common shares at initial public offering		915,947			-
Transaction cost of offering		(55,874	)		-
Dividends paid		(126,045	)		(30,977	)
Interest on equity, paid		(6,288	)		(4,276	)
Payment of lease liabilities		(17,656	)		(15,500	)
Proceeds from loans and borrowings		740,596			144,269
Payment of loans and borrowings		(75,196	)		(88,107	)
Net cash from financing activities		1,376,766			5,409
Net increase in cash and cash equivalents		1,601			84,990
Cash and cash equivalents as of January 1st		162,827			79,500
Exchange variation effect on cash and cash equivalents		(20,949	)		(1,663	)
Cash reduction due to spin-off effect		(7,752	)		-
Cash and cash equivalents as of December 31, 2021		135,727			162,827

Pro Forma- Statement of profit and loss (Unaudited)
(in BRL thousand)
		CI&T			Dextra			Transaction Accounting Adjustments			CI&T Pro forma 2021
Net revenue		1,444,380			172,959						1,617,339
Costs of services provided		(935,732	)		(103,207	)					(1,038,939	)
Gross profit		508,648			69,752						578,400
Selling expenses		(89,654	)		(1,021	)					(90,675	)
General and administrative expenses		(151,681	)		(20,010	)		(14,927	)		(186,618	)
Research and technological innovation expenses		(4	)		-						(4	)
Impairment loss on trade receivables and contract assets		(497	)		92						(405	)
Other income (expenses) net		(22,206	)		(884	)					(23,090	)
Operating profit before financial income and tax		244,606			47,929			(14,927	)		277,608
Finance income		69,816			224						70,040
Finance cost		(104,048	)		(1,852	)		(28,794	)		(134,694	)
Net finance costs		(34,232	)		(1,628	)		(28,794	)		(64,654	)
Profit before Income tax		210,374			46,301			(43,721	)		212,954
Income tax		(84,417	)		(14,358	)		14,865			(83,910	)
Current		(95,375	)		(12,740	)		14,865			(93,250	)
Deferred		10,958			(1,618	)					9,341
Net profit for the period		125,957			31,943			(28,856	)		129,044
Income attributable to:
Controlling shareholders		125,957			31,943			(28,856	)		129,044
Net profit for the period		125,957			31,943			(28,856	)		129,044
Earnings per share
Earnings per share – basic (in R$)		1.030									1.060
Earnings per share – diluted (in R$)		1.010									1.030

APPENDIX

Reconciliation of Non-IFRS measures - Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1, 2021 (Unaudited)
(in BRL thousand)
		2021			2020
Pro forma Net Revenue		1,617,339			1,160,555
Pro forma Cost		(1,038,939	)		(717,701	)
Pro forma Gross Profit		578,400			442,854
Pro forma Selling, general, and administrative		(277,297	)		(210,678	)
Pro forma Impairment loss on trade receivables and contract assets		(405	)		(258	)
Pro forma Other income (expenses) net		(23,090	)		(789	)
Pro forma Operating profit before financial income		277,608			231,129
Pro forma Net finance expense		(64,654	)		(58,825	)
Pro forma Profit before Income tax		212,954			172,304
Pro forma Income Tax		(83,910	)		(57,702	)
Pro forma Net profit for the period		129,044			114,602
Reconciliation of Pro forma Adjusted Gross Profit
Pro forma Gross Profit		578,400			442,854
Adjustments
Depreciation and amortization (cost of services provided)		37,004			28,591
Stock Options		1,930			139
Adjusted Pro forma Gross Profit		617,335			471,584
Adjusted Pro forma Gross Profit Margin		38.0	%		40.6	%
Reconciliation of Pro forma EBITDA
Pro forma Net profit for the period		129,044			114,602
Adjustments
Net finance expense		64,654			58,825
Income tax expense		83,910			57,702
Depreciation and amortization		71,779			64,587
Pro forma EBITDA		349,387			295,716
Pro forma EBITDA Margin		21.6	%		25.5	%
Reconciliation of Adjusted Pro forma EBITDA
Pro forma Net profit for the period		129,044			114,602
Adjustments
Net finance expense		64,654			58,825
Income tax expense		83,910			57,702
Depreciation and amortization		71,779			64,587
Stock Options		2,531			934
Consultant Expenses		9,177			1,706
Government grants		(2,481	)		(1,571	)
Impairment		21,895			0
Indemnity		0			(18	)
Adjusted Pro forma EBITDA		380,508			296,767
Adjusted Pro forma EBITDA Margin		23.5	%		25.6	%
Reconciliation of Adjusted Pro forma Net Income
Pro forma Net profit for the period		129,044			114,602
Adjustments
Business Consultant Cost		9,177			1,706
Impairment		21,895			0
Indemnity		0			(18	)
Adjusted Pro forma Net profit for the period		160,116			116,290
Adjusted Pro forma Net profit Margin for the period		9.9	%		10.0	%

NET REVENUE AT CONSTANT CURRENCY		Three months ended December 31,				Full year ended December 31,
		2021		2020		2021		2020
Net Revenue at Constant Currency		448,375		265,292		1,408,679		958,142

 

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Investor Relations Contact:

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Source: CI&T Inc.