Ci&t Inc · NYSE:CINT
Ci&t — Q3 2022 Earnings Presentation
46 slides from Ci&t's earnings presentation, Nov 17, 2022
Slide 1: Global Digital Specialists: Make Their Tomorrow
GLOBAL DIGITAL SPECIALISTS 27 YEARS MAKE THEIR TOMORROW
Slide 2: Safe Harbor and Non-IFRS Measures
SAFE HARBOR AND NON-IFRS MEASURES FORWARD-LOOKING STATEMENTS This presentation 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 st
Slide 3: Agenda
AGENDA WHO THE RESULTS CASE THE CLOSIN WE OPPOR DRIVEN STUDIES CI&T & Q&A ARE TUNITY WAY
Slide 4: Click the screen to play video
click the screen to play video click the screen to play video
Slide 5: Delivering Digital Transformation to the World's Leading Brands
DELIVERING DIGITAL TRANSFORMATION TO THE WORLD'S LEADING BRANDS
Slide 6: Who We Are
WHO WE ARE DRIVEN BY GROWTH 6
Slide 7: We Are Digital Specialists
WE ARE DIGITAL SPECIALISTS 27 years of profitable growth (CAGR 34% L5Y 2017-2021) 6,900+ Top Ranked professionals, including “Great Place to Work” strategists, designers and 16 consecutive years software engineers(1) via GPTW Institute in Brazil 147+ Large Enterprises & 4.6 Overall Glassdoor Rating
Slide 8: 27 Years of Continuous Growth & an Ever Evolving DNA
27 YEARS IPO at NYSE 2021 OF CONTINUOUS GROWTH & AN EVER EVOLVING DNA DRIVEN 2019 BY IMPACT LEAN DIGITAL TRANSFORMATION 2018 HIGH PERFORMANCE Recent Acquisitions TEAMS R&D INTERNET SOFTWARE BOX 1824 2015 2021 2022 2022 2022 2022 Case Studies & Recognitions 2009 2006 2005 Awarded in Brazil Featured a
Slide 9: CI&T Delivers End-to-End Solutions Supporting the Entire Digital Journey
CI&T DELIVERS END-TO-END SOLUTIONS SUPPORTING THE ENTIRE DIGITAL JOURNEY CONSULTING APPROACH ENABLES CI&T TO ENGAGE CLIENTS EARLY STRATEGY • IDENTIFY HIGH-VALUE OPPORTUNITIES • SURFACE KEY INSIGHTS CO-DESIGNING THE SOLUTIONS WITH THE CLIENTS ENABLES BETTER AND FASTER BUSINESS RESULTS DESIGN • FOCUS
Slide 10: Clients Positively Impacting Our Clients
CLIENTS POSITIVELY IMPACTING OUR CLIENTS GIVING GIANTS NIMBLE FEET 10 Note: As of June 30, 2022
Slide 11: Programmatic & Disciplined M&A Strategy
PROGRAMMATIC & DISCIPLINED M&A STRATEGY GLOBAL GEOGRAPHICAL COVERAGE GROWTH ECOSYSTEM STARDUST LOVELACE BOX1824 VOYAGER + LUMIERE AUSTRALIA BOOSTED BY CI&T PLATFORM DRAGONFLY • PEOPLE GALILEO • MARKETING • F&A&IT DA VINCI GEMINI + SOURCING / SCREENING / CRITERIA DESIGNED FOR ORGANIC GROWTH • FOUNDER
Slide 12: Somo Acquisition (Jan 2022)
SOMO ACQUISITION (Jan 2022) GEOGRAPHIC DIVERSIFICATION AND NEW INDUSTRY VERTICALS MAIN CLIENTS MAIN AWARDS #1 Digital Agency in 12 Colombia 12
Slide 13: Box1824 Acquisition (May 2022)
BOX1824 ACQUISITION (May 2022) A strategic consultancy firm that transforms visions of the future and maps behaviors in business strategies. Map scenarios to identify Translate new contexts in a Highlight paths and measures so movements, behaviors and tangible and structured companies can make the m
Slide 14: Transpire Acquisition (Sep 2022)
TRANSPIRE ACQUISITION (Sep 2022) CLIENTS A digital product agency SERVICES PEOPLE based in Australia that User Experience & Mobile & Web Cloud Transpire works in creates digital experiences Design Thinking Development Software technology, but their digital experiences are built for and to transform
Slide 15: Ntersol Acquisition (Nov 22)
NTERSOL ACQUISITION (Nov 22) • Headquartered in Irvine, CA • 170 U.S. based Digital Specialists Custom Consumer / SAAS / PAAS Cloud DevOps / Cloud Data UX / UI Design Product Solutions Enterprise Digital Solution Design & Infrastructure Engineering & Services Strategy Experiences Development Analyti
Slide 16: The Opportunity
THE OPPOR TUNITY BORN DIGITAL 16
Slide 17: Large Market Opportunity for Digital Transformation Continues to Grow
LARGE MARKET OPPORTUNITY FOR DIGITAL TRANSFORMATION CONTINUES TO GROW WORLDWIDE UNITED STATES LATIN AMERICA $648B $225B $16B ~$7T 65% of global GDP is expected to be digitized by 2022, driving approximately $7 trillion in IT spending from 2020 to 2023. (1) 14% 13% 17% 500M From 2018 to 2023, 500 mil
Slide 18: Client Impact: Best of Breed Tech Services Partners Are 100% Digital
BEST OF BREED TECH SERVICES PARTNERS ARE 100% DIGITAL Digital Native Specialists CLIENT IMPACT Focus: End-to-end, scalable digital solutions AAA Focus: Scale, Cost Arbitrage & Engineering Talent AAAA Lack: Strategy Expertise, Agility & Collaborative Culture Traditional IT Services Digital Agencies &
Slide 19: Think Global, Act Local
United Canada Kingdom Germany Ireland France USA Portugal Egypt China Japan Dominican Republic THINK Mexico Puerto Rico Costa Rica GLOBAL, Colombia ACT LOCAL Nigeria Brazil Peru Prisma Australia Global competence centers Uruguay Spot Chile Near-the-customer centers Argentina Spark Strategy & design
Slide 20: Results Driven
RESULTS DRIVEN DRIVEN BY IMPACT 20
Slide 21: 9M22 Financial Highlights
9M22 FINANCIAL HIGHLIGHTS 1. SUPERIOR GROWTH PROFILE 2. RESILIENT BUSINESS MODEL 60% Net Revenue Growth in 9M22 over 9M21 (65% at Constant Currency) 18.6% Adjusted EBITDA Margin 147 Clients Contributing R$1M+ Net addition of 1,5 thousand employees in Revenue in 3Q22 LTM the last 12 months, an increa
Slide 22: 2021 and 9M22 Results: Resilient Top-Line Growth
2021 and 9M22 RESULTS • RESILIENT TOP-LINE GROWTH Net Revenue R$ Million +60% +51% 1,576 1,444 Net Revenue Growth at Constant Currency +41% 66% 988 957 9M22 x 9M21 677 2019 2020 2021 9M21 9M22 Note: net revenue growth at constant currency is a non-IFRS financial measures. Please refer to the appendi
Slide 23: 2021 and 9M22 Results: Solid Profitability Metrics
2021 and 9M22 RESULTS • SOLID PROFITABILITY METRICS Adjusted EBITDA & Margin R$ Million; % 22.5% 24.9% 18.6% 22.4% 20.1% 294 +36% 222 +75% 324 238 136 2019 2020 2021 9M21 9M22 Adjusted EBITDA Margin 23 Note: Adjusted EBITDA and adjusted EBITDA margin are non-IFRS financial measures. Please refer to
Slide 24: 2021 and 9M22 Results: Consistent Adjusted Net Profit Growth
2021 and 9M22 RESULTS • CONSISTENT ADJUSTED NET PROFIT GROWTH Adjusted Net Profit & Margin R$ Million; % 11.3% 10.2% 13.4% 10.7% 10.9% +46% +23% 162.9 157 111.9 +78% 128 72 2019 2020 2021 9M21 9M22 Adjusted Net Profit Margin 24 Note: Adjusted net profit and adjusted net profit margin are non-IFRS fi
Slide 25: Blue Chip Client Base Across Regions & Industries
BLUE CHIP CLIENT BASE ACROSS REGIONS & INDUSTRIES 9M22 NET REVENUE BREAKDOWN NET REVENUE BY GEOGRAPHY NET REVENUE BY INDUSTRY TOP CLIENT’S NET REVENUE SHARE % OF TOTAL % OF TOTAL % OF TOTAL APJ LOGISTIC AND OTHERS TOP 3% TRANSPORTATION 9% CLIENT 4% EDUCATION & OTHER 16% SERVICES FINANCIAL CLIENTS 4%
Slide 26: Client Relationships Growth Engine: Consistently Expanding
CLIENT RELATIONSHIPS GROWTH ENGINE: CONSISTENTLY EXPANDING Number of Multi-million Accounts (cumulative) 128% Net Revenue Retention Rate in 2021(1) 26 Notes: (1) Percentage of recurring revenue retained from existing customers in the prior year
Slide 27: Business Outlook
Business Outlook new guidance of at least 58% Net Revenue Growth (y-o-y) 41% 51% in 2022 in 2021 in 2020 on a constant [1] Digital Strategy as currency basis a core component of our offering Adjusted EBITDA margin [2] our Growth Unit of at least 19% in 2022 business architecture Assuming an average
Slide 28: Numerous Vectors for Continuous Growth
NUMEROUS VECTORS FOR CONTINUOUS GROWTH 4 5 3 PURSUE CONTINUE STRATEGIC 2 GLOBAL ACQUISITIONS EXPANSION CONTINUE 1 EXPAND ATTRACT NEW INNOVATING NEW SOLUTIONS 64% CLIENTS 9M22-9M21 growth RELATIONSHIP in net revenue WITH EXISTING Leverage learnings from generated in North Continually 27 year history
Slide 29: Case Studies
CASE STUDIES DRIVEN BY GLOBAL REACH 29
Slide 30: Powerful Stories
POWERFUL STORIES REINVENTING HOME BOOSTING CUSTOMER LAUNCH A MARKETPLACE AUDIO EXPERIENCE EXPERIENCE AT SCALE IN JUST FOUR MONTHS Sonos is a leading American manufacturer E.ON is a European utility company Next is the digital bank (10M clients) part of of high-end audio products, and we support oper
Slide 31: Powerful Stories
POWERFUL STORIES FROM FRAGMENTED DATA IMPROVING DIABETIC BETTING HIGH ON DIGITAL TO BUSINESS RESULTS PATIENTS’ LIVES We deployed data analytics solutions to Utilizing low-code architecture and the CI&T BEES is a global B2B digital platform that gain a deeper understanding of customers relationship w
Slide 32: Powerful Stories
POWERFUL STORIES SUPPORTING YOUTH REIMAGINING A SALES ECOSYSTEM FOR EMPLOYABILITY THE DRUGSTORES BUSINESS IMPACT One Million Opportunities (1MiO) was Box 1824, part of the CI&T family, facilitated A system made to transform data insights launched in October 2020 by UNICEF Brazil, RD, the biggest dru
Slide 33: Powerful Stories
POWERFUL STORIES SEAMLESS PAYMENT ENABLING TRUST AND LEADING NEW CUSTOMER EXPERIENCES USAGE OF DATA EXPERIENCES The company was founded as a tax-free We helped Bayer organize data in the PEXA's world-first digital settlement platform shopping and payments specialist providing agribusiness sector for
Slide 34: The CI&T Way
THE CI&T WAY MAKING PEOPLE'S TOMORROW CI&T Prisma Campinas/ São Paulo • Brazil 34
Slide 35: CI&T Proprietary Methodology
CI&T PROPRIETARY METHODOLOGY Combining impact-focused Decentralizing the strategy with client-centric design decision-making process and with technical mastery to delivery fostering entrepreneurship and end-to-end programs. autonomy to be able to adapt and learn fast. Using diversity and trust as th
Slide 36: Engagement Model
WAY ENGAGEMENT MODEL STRATEGY + DESIGN + ENGINEERING IMPACT 01 CO-DESIGN STRATEGY 02 DELIVER QUARTERLY IMPACT 03 SCALE & DIGITALLY TRANSFORM DIGITAL BUSINESS INITIATIVE PROBLEM ROADMAP AGILE DELIVERY 2 - 4 WEEKS DISCOVERY PEOPLE, PROCESS & TECHNOLOGY ASSESSMENT 2 -8 WEEKS EVERY 90 DAYS 12 - 24 MONTH
Slide 37: CI&T Platform: Designed for Growth
WAY CI&T PLATFORM • DESIGNED FOR GROWTH Organic, flexible and integrated structure, designed for autonomy and speed LEARNING Atlas Kappa ALLIANCES Dragonfly Alliances are cross GU, cross TAURUS region arrangements based Alpha Zeta on clients, segments, Tauri VELA Tauri opportunities or others. Pyxis
Slide 38: CI&T Power Houses
Consumer WAY Technology Packaged Goods DEEP TECH & DATA Life Sciences Media and and Healthcare Entertainment TALENT & CULTURE LEARNING Future of Work CONTINUOUS BUSINESS GROWTH Retail and Industry Partnerships Commerce Expertise Lean Digital Pollination PRODUCT BASED GROWTH Financial Services Retail
Slide 39: People Platform for Growth
PEOPLE PLATFORM FOR GROWTH CI&Ters +28% Recognized for “Good Employability 6,887 Practices for Disabled Workers” at the UN 6,768 6,435 5,564 5,398 3Q21 4Q21 1Q22 2Q22 3Q22 39 39
Slide 40: People Platform for Growth
WAY PEOPLE PLATFORM FOR GROWTH ACCELERATING ENTREPRENEURSHIP TO ENSURE CORPORATE GOVERNANCE, PEOPLE GLOBAL CULTURE AND SUSTAINABLE TALENT GROWTH. CENTER OF CULTURE, LEADERSHIP & EMOTIONAL SAFETY 11.1 9.3 9.1 8.8 8.8 4.7 96% ATTRACT KEEP 83% Approx. 5% Leadership Attrition 3Q22(1) new hires acceptanc
Slide 41: Solid Management and Governance
SOLID MANAGEMENT AND GOVERNANCE CURRENT BOARD OF DIRECTORS AND MANAGEMENT OF CI&T SOFTWARE S.A., OUR MAIN OPERATING ENTITY BOARD OF DIRECTORS A HIGHLY PREPARED AND QUALIFIED BOARD OF DIRECTORS • Seasoned Entrepreneurs • Maria Helena: Consulting Board of B3 / Former Executive Chairman of the Brazilia
Slide 42: Investment Highlights
INVESTMENT HIGHLIGHTS 2. End-to-End Digital Solutions Differentiated engagement model coupled with deep technical capabilities offer clients a holistic digital transformation solution 1.Massive Market 3. Delivery Model Massive, fragmented and Latin America roots and expanding addressable nearshore m
Slide 43: Make Their Tomorrow
MAKE THEIR TOMORROW WE UNLOCK POTENTIALS. TO TRANSFORM PEOPLE'S LIVES. SO THEY CAN CREATE NEW OPPORTUNITIES. AND BE THE PROTAGONISTS THAT WILL BUILD A BETTER TOMORROW. 43
Slide 44: Thank You
THANK YOU x GLOBAL DIGITAL SPECIALISTS 44
Slide 45: Unaudited Condensed Consolidated Statement of Profit or Loss
Unaudited condensed consolidated statement of profit or loss (In thousands of Brazilian Reais) 45
Slide 46: Appendix - 3Q2022 and 9M2022 Reconciliation of Non-IFRS Measures
Appendix - 3Q2022 and 9M2022 Reconciliation of Non-IFRS measures 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