CI&T Reports Third Quarter Financial Results

CI&T (“Company”, NYSE: CINT), a global digital specialist, today announces its results for the third quarter of 2021 (3Q21) and for the nine months ended September 30, 2021 (9M21). For comparison reasons, we refer to the results for the third quarter of 2020 (3Q20) and for the nine months ended September 30, 2020 (9M20).

Our financial results from 3Q21 and 9M21 contemplate the consolidation of Dextra as of August 10, 2021, while our pro forma results consider the acquisition of Dextra as if the acquisition had occurred on January 1, 2021.

3Q21 Highlights:

• Net revenue of R$376.0 million, a 55% growth year-over-year (57% in constant currency basis).
• 44% net revenue growth in the U.S. market compared with 3Q20.
• Pro forma net revenue of R$411.1 million.

Cesar Gon, CEO of CI&T, commented "This is our first earnings release since we became a publicly traded company a few weeks ago and I would like to thank all investors for your trust and support throughout this process. In a total offering of US$225 million, CI&T raised US$157 million in net proceeds, which we intend to use to fund our continuous growth.

We are very excited to present a robust 55% year-over-year net revenue growth in the quarter with consistent profitability, even compared to a solid 3Q20 results. This growth was boosted by higher demand from existing clients combined with the addition of new clients to our portfolio, representing our 21st consecutive quarter of net revenue growth. We continue to observe a strong demand environment and we expect our net revenue in the fourth quarter of 2021 to be at least R$440.0 million, a 66% growth year-over-year."

On August 10, 2021, we concluded the acquisition of Dextra, a company based in Brazil focused on customized software development and an expert in combining design methodologies, agile development and data science to deliver digital products to its clients. With a solid client portfolio, Dextra will allow us to further diversify our client base, as well as strengthen our ability to deliver high quality services to our clients.

The number of clients with net revenue above R$1 million in the last twelve months (LTM) grew from 62 in 2Q21 to 75 in the quarter in all regions (Latam, North America, Europe and APAC), which we expect will contribute to foster our revenue growth in the following years. In terms of geographies, all regions are on a growth trajectory, with the USA continuing to be a fast growing market, with a 44% growth in the period.

We onboarded 1,364 net new employees during 3Q21, including 1,167 from Dextra, totaling 5,398 CI&Ters by the end of the quarter. We continue to develop our people training actions (CI&T University), fostering career opportunities and growth at all levels.

During the quarter, we began a new R&D joint project, named Cognitive Lab (C-Lab), along with UNICAMP, one of the most respected Brazilian universities, and a few CI&T clients, to develop machine learning tools on human dialogues, aimed at automating customer service processes.

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

For 3Q21⁽¹⁾:

• Pro forma net revenue of R$411.1 million.
• Pro forma adjusted EBITDA of R$91.8 million and 22.3% adjusted EBITDA margin.
• Pro forma net profit of R$1.7 million.
• Pro forma adjusted net profit of R$27.4 million and 6.7% adjusted net profit margin.

For 9M21:

• Pro forma net revenue of R$1,160.5 million.
• Pro forma adjusted EBITDA of R$277.5 million and 23.9% adjusted EBITDA margin.
• Pro forma net profit of R$88.8 million and 7.6% net profit margin.
• Pro forma adjusted net profit of R$117.2 million and 10.1% adjusted net profit margin.

(1) The Pro Forma numbers for the three months ended September 30, 2021 (3Q21) are derived from the difference of the unaudited pro forma condensed statement of profit and loss for the nine months ended September 30, 2021 and the unaudited pro forma condensed statement of profit or loss for the six months ended June 30, 2021.

3Q21 CI&T Financial highlights, including the Dextra acquisition as of August 10, 2021

• Net revenue of R$376.0 million, an increase of R$133.1 million compared to 3Q20, a 55% growth in the period, of which 36% was organic growth and 19% was related to the Dextra acquisition as of August 10th.
• Net revenue growth on a constant currency basis was 57% year-over-year.
• 3Q21 net revenue breakdown:
  • by industry vertical: financial services 36%; food & beverages 21%; pharmaceuticals and cosmetics 14%; technology, media and telecom 12%; and others 17%.
  • by geographic region: USA 44%; Brazil 51%; Asia Pacific and Japan 3%; and Europe 2%.
  • by client concentration: top one client 17%; and top 10 clients 60%.
• Adjusted EBITDA of R$80.1 million, an increase of R$14.8 million or 23% over 3Q20. Adjusted EBITDA margin was 21.3%.
• Net loss of R$2.2 million, compared to a net profit of R$39.5 million in the same quarter of 2020.
• Adjusted net profit of R$24.5 million in the quarter, a reduction of R$15.3 million in relation to 3Q20. Adjusted net profit margin was 6.5%.

Comments on the 3Q21 financial performance

Net revenue was R$376.0 million, an increase of R$133.1 million or 55% year-over-year, mainly due to higher demand for digital transformation from our existing clients and the addition of new clients to our portfolio, combined with the consolidation of Dextra as of August 10, 2021. In terms of geographic region, the highlight for the quarter was the net revenue increase in the U.S., from R$114.6 million in 3Q20 to R$165.0 million in 3Q21, a 44% growth.

The costs of services provided amounted to R$246.8 million in the quarter, an increase of R$96.5 million or 64% in relation to 3Q20, mainly due to higher costs with employees, related to employee promotions and new hires in response to the growing demand for our services.

As a result, gross profit was R$129.1 million in the quarter, R$36.5 million higher than 3Q20. Adjusted gross profit totaled R$139.6 million in 3Q21, an increase of 41% over the same quarter last year, with an adjusted gross margin of 37.1% in the quarter, compared to 40.6% in 3Q20. The gross profit was adjusted for costs related to depreciation and amortization and stock options compensation plan expenses. See "Reconciliation of Non-IFRS measures" for reconciliation of adjusted gross profit to gross profit.

Selling, general and administrative (SG&A) expenses in 3Q21 totaled R$63.1 million, an increase of R$28.0 million or 80% over the same period last year, mainly related to (i) an increase in employee expenses related to new hires to strengthen the finance, accounting, legal and compliance departments in preparation for becoming a publicly-listed company, (ii) an increase of R$ 4.3 million in provisions for profit sharing related to the Dextra acquisition and (iii) M&A expenses associated with legal and accounting due diligence.

Other operating expenses of R$25.3 million in the quarter were related to the impairment of intangible assets of R$21.8 million recognized in 3Q21, a non-cash and one-off effect, as CI&T decided to discontinue investments made by Dextra on certain in progress intangible assets related to digital platforms, and R$3.1 million attributable to the issuance of new shares in connection with the IPO.

Adjusted EBITDA totaled R$80.1 million, 23% higher than 3Q20, with an adjusted EBITDA margin of 21.3% compared to 26.9% in 3Q20. The adjusted EBITDA in the quarter reflects higher costs of services provided and SG&A expenses, as explained above, while 3Q20 recorded an outstanding result, benefited by the favorable foreign exchange rate. See "Reconciliation of Non-IFRS measures" for reconciliation of adjusted EBITDA to net profit.

Net financial expenses were R$22.4 million in 3Q21, compared to R$1.9 million in 3Q20, as the Company incurred R$650 million in new debt during the quarter to finance the Dextra acquisition, which will mature in 2026. Income tax expenses, including current and deferred tax, was R$18.9 million, a R$2.5 million increase or 15% compared to 3Q20.

Therefore, the net loss of R$2.2 million in the quarter was mainly due to the impairment of intangible assets of R$21.8 million, a non-cash effect. Adjusted net profit was R$24.5 million in the quarter, a reduction of R$15.3 million in relation to 3Q20, mainly due to higher financial expenses and an increase in depreciation and amortization, both associated with the Dextra acquisition. Net profit was adjusted for the impairment of intangible assets and consulting expenses associated with the corporate reorganization and the IPO, as well as M&A activities.

Cash Flow and Other Metrics

• Cash generated from operating activities was R$90.2 million in the 9M21, compared to R$102.7 million in the 9M20.
• Cash and cash equivalents totaled R$113.4 million at the end of 3Q21, while total debt (loans and borrowings) ended the quarter at R$782.1 million.
• Net debt (defined as total debt (loans and borrowings) minus cash and cash equivalents) at the end of the quarter was R$668.7 million.
• Considering the net proceeds from the IPO of US$156.7 million, net of underwriting discounts and commissions, the Company has a cash position higher than its outstanding debt as of November, 2021.
• Total headcount at the end of 3Q21 was 5,398 CI&Ters, an addition of 1,364 people, including 1,167 from Dextra, when compared to 2Q21.

Business Outlook

We continue to see strong demand for digital transformation services worldwide. We expect our revenue growth to continue accelerating during 4Q21, based on our engagement with current clients and existing master services agreements, combined with our pipeline of potential new clients, as well as the contribution of net revenue from the consolidation of Dextra.

Therefore, we expect our net revenue in the fourth quarter of 2021 to be at least R$440.0 million, a 66% growth compared to our net revenue of R$ 265.4 million in the fourth quarter of 2020.

For the full year of 2021, we expect our pro forma net revenue to be at least R$1,600 million, a 38% growth compared to our pro forma net revenue of R$1,161 million in 2020.

These expectations are forward-looking statements. See "Cautionary Statement on Forward-Looking Statements" below.

Initial Public Offering (IPO)

On November 15, 2021 we concluded our IPO, consisting of 15 million class A common shares, of which 11.1 million shares were offered by CI&T and 3.9 million shares were offered by certain selling shareholders. The Company did not receive any proceeds from the sale of our common stock by the selling stockholders. We received net proceeds of US$156.7 million upon the closing of the IPO, after deducting the underwriting discounts and commissions. The shares began trading on the New York Stock Exchange (NYSE) on November 10, 2021, under the ticker symbol “CINT”.

Conference Call Information

CI&T's senior management team will host a conference call to discuss the 3Q21 financial and operating results on December 2, 2021 at 8:00 a.m. Eastern Time / 10:00 a.m. BRT. A webcast of the conference call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or by dialing [phone] (USA) or [phone] (Brazil). A replay will be available on the Company’s Investor Relations website or by dialing [phone] (USA) or [phone] (Brazil) and informing the conference ID 9949646#.

About CI&T

CI&T is a global digital specialist, a partner in end-to-end digital transformation for 50+ Large Enterprises & Fast Growth Clients. As digital natives, we bring a 26-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 unaudited consolidated financial statements and the functional currency of our operations in Brazil. CI&T prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS, as issued by the IASB, and International Financial Reporting Standard No 34—Interim Financial Reporting (“IAS 34”).

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. See "Reconciliation of Non-IFRS measures, including Dextra as of August 10, 2021" and "Reconciliation of Non-IFRS measures Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1st, 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. We calculate Net Revenue at Constant Currency and Net Revenue Increase 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.

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.

Reconciliation of Non-IFRS measures, including Dextra as of August 10, 2021

The following table presents a reconciliation of our Non-IFRS measures, such as adjusted gross profit, EBITDA, adjusted EBITDA and adjusted net profit for the following periods:

		Three months ended September						Nine months ended September 30,
		2021			2020			2021			2020
		(in thousands of Brazilian reais)						(in thousands of Brazilian reais)
Net Revenue		375,970			242,897			987,586			691,152
Gross Profit		129,124			92,582			346,600			256,580
Reconciliation of Adjusted Gross Profit
Depreciation and amortization (cost of services provided)		10,345			6,092			23,121			18,091
Stock Options		116			43			348			62
Adjusted Gross Profit		139,584			98,717			370,069			274,733
Adjusted Gross Profit Margin		37.1	%		40.6	%		37.5	%		39.7	%
Reconciliation of EBITDA
Net profit (loss) for the period		(2,208	)		39,538			82,129			98,253
Adjustments
Net finance costs		22,416			1,891			26,102			14,036
Income tax expense		18,857			16,386			57,515			46,287
Depreciation and amortization		14,083			7,559			30,102			22,452
EBITDA		53,147			65,374			195,848			181,028
EBITDA Margin		14.1	%		26.9	%		19.8	%		26.2	%
Reconciliation of Adjusted EBITDA
Net profit for the period		(2,208	)		39,538			82,129			98,253
Adjustments
Net finance costs		22,416			1,891			26,102			14,036
Income tax expense		18,857			16,386			57,515			46,287
Depreciation and amortization		14,083			7,559			30,102			22,452
Stock Options		193			213			693			733
Consulting Expenses		4,895			320			5,357			320
Government grants		(4	)		(673	)		(1,418	)		(1,318	)
Impairment		21,818			-			21,818			-
Adjusted EBITDA		80,048			65,234			222,298			180,763
Adjusted EBITDA Margin		21.3	%		26.9	%		22.5	%		26.2	%
Reconciliation of Adjusted Net Profit (loss)
Net profit (loss) for the period		(2,208	)		39,538			82,129			98,253
Adjustments
Impairment		21,818			-			21,818			-
Consulting Expenses		4,895			320			5,357			320
Adjusted Net profit (loss) for the period		24,504			39,858			109,304			98,573
Adjusted Net profit (loss) Margin for the period		6.5	%		16.4	%		11.1	%		14.3	%
Net Revenue in Constant Currency		380,707			242,832			-			-

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 secondary public offering costs, 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 secondary 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.

Reconciliation of Non-IFRS measures Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1, 2021.⁽¹⁾
(in thousands of Brazilian Reais - R$, unaudited)

	Three months ended September 2021			Nine months ended September 2021
Pro forma Net Revenue	411,106			1,160,545
Pro forma Cost	(267,184	)		(744,193	)
Pro forma Gross Profit	143,922			416,352
Pro forma Selling, general, and administrative	(70,078	)		(193,364	)
Pro forma Impairment loss on trade receivables and contract assets	(1,662	)		(1,938	)
Pro forma Other income (expenses) net	(25,228	)		(24,745	)
Pro forma Operating profit before financial income	46,954			196,305
Pro forma Net finance costs	(28,491	)		(48,691	)
Pro forma Profit before Income tax	18,463			147,614
Pro forma Income Tax	(16,748	)		(58,840	)
Pro forma Net profit (loss) for the period	1,715			88,774
Reconciliation of Pro forma EBITDA
Pro forma Net profit (loss) for the period	1,715			88,774
Adjustments
Net finance costs	28,491			48,691
Income tax expense	16,748			58,840
Depreciation and amortization	18,967			53,527
Pro forma EBITDA	65,921			249,832
Pro forma EBITDA Margin	16.0	%		21.5	%
Reconciliation of Adjusted Pro forma EBITDA
Pro forma Net profit (loss) for the period	1,715			88,774
Adjustments
Net finance costs	28,491			48,691
Income tax expense	16,748			58,840
Depreciation and amortization	18,967			53,527
Stock Options	193			693
Consulting Expenses	3,825			6,617
Government grants	(4	)		(1,418	)
Impairment	21,818			21,818
Adjusted Pro forma EBITDA	91,753			277,542
Adjusted Pro forma EBITDA Margin	22.3	%		23.9	%
Reconciliation of Adjusted Pro forma Net Income
Pro forma Net profit (loss) for the period	1,715			88,774
Adjustments
Consulting Expenses	3,825			6,617
Impairment	21,818			21,818
Adjusted Pro forma Net profit (loss) for the period	27,358			117,209
Adjusted Pro forma Net profit (loss) Margin for the period	6.7	%		10.1	%

Please refer to the previous page for explanations of the reconciliation items for non-IFRS measures.

(1) The Pro Forma numbers for the three months ended September 30, 2021 (3Q21) are derived from the difference of the unaudited pro forma condensed statement of profit and loss for the nine months ended September 30, 2021 and the unaudited pro forma condensed statement of profit or loss for the six months ended June 30, 2021.

CI&T Software S.A.

CI&T Inc was incorporated on June 7, 2021, to become the holding entity of CI&T Software S.A. in connection with the IPO. Prior to the IPO, CI&T Inc had not commenced operations and had nominal assets and liabilities and no material contingent liabilities or commitments. Accordingly, the financial statements presented in this release are those of CI&T Software S.A., the Company’s principal operating company and wholly-owned subsidiary.

Unaudited Condensed Consolidated Interim Financial Information

Statement of profit and loss, including Dextra as of August 10, 2021
(in thousands of Brazilian Reais - R$, unaudited)

		Three months ended September 30,						Nine months ended September 30,
		2021			2020			2021			2020
Net Revenue		375,970			242,897			987,586			691,152
Costs of services provided		(246,846	)		(150,315	)		(640,986	)		(434,572	)
Gross Profit		129,124			92,582			346,600			256,580
Selling expenses		(24,122	)		(14,769	)		(61,902	)		(39,278	)
General and administrative expenses		(38,966	)		(20,268	)		(93,056	)		(58,300	)
Research and technological innovation expenses		-			(690	)		(4	)		(2,652	)
Impairment loss on trade receivables and contract assets		(1,662	)		361			(2,030	)		(5	)
Other income (expenses) net		(25,309	)		599			(23,862	)		2,231
		(90,059	)		(34,767	)		(180,854	)		(98,004	)
Operating profit before financial income		39,065			57,815			165,746			158,576
Finance income		17,591			14,045			43,421			32,851
Finance cost		(40,007	)		(15,936	)		(69,523	)		(46,887	)
Net finance costs		(22,416	)		(1,891	)		(26,102	)		(14,036	)
Profit before Income tax		16,649			55,924			139,644			144,540
Income tax expense
Current		(28,809	)		(14,178	)		(63,367	)		(42,478	)
Deferred		9,952			(2,208	)		5,852			(3,809	)
Net profit (loss) for the year		(2,208	)		39,538			82,129			98,253
Income attributable to:
Controlling shareholders		(2,208	)		39,538			82,129			98,253
Non-controlling interests		-			-			-			-
Net profit (loss) for the year		(2,208	)		39,538			82,129			98,253
Earnings per share
Earnings per share – basic (in R$)		(1.25	)		22.46			46.65			55.81
Earnings per share – diluted (in R$)		(1.25	)		22.46			46.65			55.14

CI&T Software S.A.

Unaudited Condensed consolidated statements of financial information as of September 30, 2021 and December 31, 2020
(in thousands of Brazilian Reais - R$, unaudited)

Assets		September 30, 2021		December 31, 2020
Cash and cash equivalents		113,417		162,827
Trade receivables		318,400		196,256
Contract assets		147,603		50,625
Recoverable taxes		7,933		1,016
Tax assets		2,651		2,117
Derivatives		2,842		8,837
Other assets		27,696		12,874
Total current assets		620,542		434,552
Recoverables taxes		3,086		3,099
Deferred tax		25,985		15,152
Judicial deposits		3,075		3,083
Other assets		2,303		2,494
		34,449		23,828
Property, plant and equipment		55,720		38,771
Intangible assets		745,766		18,166
Right-of-use assets		75,138		69,765
		876,625		126,702
Total non-current assets		911,073		150,530
Total assets		1,531,615		585,082

CI&T Software S.A.

Unaudited Condensed consolidated statements of financial information as of September 30, 2021 and December 31, 2020
(in thousands of Brazilian Reais - R$, unaudited)

Liabilities and equity		September 30, 2021		December 31, 2020
Suppliers		25,053		15,312
Loans and borrowings		138,694		75,377
Lease liabilities		20,952		14,569
Salaries and welfare charges		214,063		141,794
Accounts payable for business combination		97,701		-
Derivatives		3,295		5,392
Tax liabilities		13,671		6,078
Other taxes payable		5,874		3,279
Dividends and interest on equity payable		4,044		30,677
Contract liability		3,014		9,987
Indemnity		-		628
Other liabilities		14,855		7,899
Total current liabilities		541,216		310,992
Loans and borrowings		643,453		13,853
Lease liabilities		62,012		60,659
Provisions		507		161
Accounts payable for business combination		35,872		-
Other liabilities		694		957
Total non-current liabilities		742,538		75,630
Equity
Share capital		59,542		68,968
Capital reserves		9,007		6,764
Profit reserves		146,170		109,308
Other comprehensive income		33,142		13,420
Total equity		247,861		198,460
Total equity and liabilities		1,531,615		585,082

CI&T Software S.A.

Unaudited Condensed Consolidated statement of cash flows for the nine months ended September 2021 and 2020
(in thousands of Brazilian Reais - R$, unaudited)

Cash flows from operating activities		September 30, 2021			September 30, 2020
Net profit for the year		82,129			98,253
Adjustments for:
Depreciation and amortization		30,102			22,452
Gain/loss on the sale of property, plant and equipment and intangible assets		338			275
Interest, adjusted for inflation and exchange rate changes		25,998			9,161
Interest on lease		4,409			3,497
Unrealized gains on financial instruments		3,898			6,006
Income tax expense		57,515			46,287
Provision for (reversal of) impairment losses on trade receivables and contract assets		2,030			5
Write-off (impairment) of intangible assets		21,818			-
Provision for labor risks		346			13
Exchange rate changes on indemnity		-			(4,413	)
Share-based plan		694			733
Remeasurement of Right-of-Use assets		247			-
Others		(195	)		(119	)
Reduction (Increase) in operating assets and liabilities
Trade receivables		(87,669	)		(30,283	)
Contract assets		(67,530	)		(16,272	)
Other taxes recoverable		(13,260	)		(4,548	)
Current tax assets		(2	)		505
Judicial deposits		7			-
Suppliers		4,075			2,821
Salaries and welfare charges		43,788			38,889
Tax liabilities		(3,797	)		(7,940	)
Other taxes payable		1,448			2,295
Contract liability		(9,036	)		(15,479	)
Payment of share-based indemnity		(628	)		(38,386	)
Other receivables and payables, net		(6,538	)		(11,047	)
Cash generated from operating activities		90,187			102,705
Income tax paid		(44,468	)		(30,128	)
Interest paid on loans and borrowings		(2,296	)		(2,243	)
Interest paid on lease		(3,972	)		(3,496	)
Net cash from operating activities		39,451			66,838
Cash flows from investment activities
Acquisition of property and equipment and intangible assets		(22,112	)		(16,422	)
Business combinations		(650,000	)		-
Net cash (used in) investment activities		(672,112	)		(16,422	)
Cash flows from financing activities
Share-based plan contributions		989			1,751
Dividends paid		(71,039	)		(30,977	)
Interest on equity, paid		(713	)		(2,679	)
Payment of lease liabilities		(12,407	)		(12,070	)
Proceeds from loans and borrowings		740,596			144,270
Payment of loans and borrowings		(71,702	)		(69,242	)
Net cash from (used in) financing activities		585,724			31,053
Net increase in cash and cash equivalents		(46,937	)		81,469
Cash and cash equivalents as of January 1st		162,827			79,500
Exchange variation effect on cash and cash equivalents		(2,937	)		(7,565	)
Cash reduction due to spin-off effect		(7,752	)		-
Cash increase due to business combination		8,216			-
Cash and cash equivalents at the end of the period		113,417			153,404

CI&T Software S.A.

Unaudited Pro Forma Condensed Consolidated Financial Information

Pro forma statement of profit and loss for the nine months ended September 30, 2021
(in thousands of Brazilian Reais - R$, unaudited)

		CI&T			Dextra			Transaction Accounting Adjustments			CI&T Pro Forma
Net revenue		987,586			172,959						1,160,545
Costs of services provided		(640,986	)		(103,207	)					(744,193	)
Gross profit		346,600			69,752			-			416,352
Selling expenses		(61,902	)		(1,021	)		-			(62,923	)
General and administrative expenses		(93,056	)		(20,010	)		(17,370	)		(130,436	)
Research and technological innovation expenses		(4	)		-			-			(4	)
Impairment loss on trade receivables and contract assets		(2,030	)		92			-			(1,938	)
Other income (expenses) net		(23,862	)		(884	)		-			(24,746	)
Operating profit before financial income		165,746			47,929			(17,370	)		196,305
Finance income		43,421			224			-			43,645
Finance cost		(69,523	)		(1,852	)		(20,961	)		(92,336	)
Net finance costs		(26,102	)		(1,628	)		(20,961	)		(48,691	)
Profit before Income tax		139,644			46,301			(38,331	)		147,614
Income tax		(57,515	)		(14,358	)		13,033			(58,840	)
Net profit for the period		82,129			31,943			(25,298	)		88,774
Earnings per share
Earnings per share – basic (in R$)		0.047									0.050
Earnings per share – diluted (in R$)		0.047									0.050

 

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