Cover page
Cover page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Entity Registrant Name | CI&T Inc |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001868995 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2021 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41035 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | R. Dr. Ricardo Benetton Martins, |
Entity Address, Address Line Two | 1,000 Pólis de Tecnologia - Prédio 23B, |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 13086-902 |
Entity Address, Country | BR |
Entity Common Stock, Shares Outstanding | 15,000,000 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Security Exchange Name | NYSE |
Title of 12(b) Security | Class A common shares, par value US$0.00005 per share |
Trading Symbol | CINT |
Auditor Name | KPMG Auditores Independentes Ltda. |
Auditor Location | Campinas, Brazil |
Auditor Firm ID | 1124 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Stanley Rodrigues |
Entity Address, Address Line One | R. Dr. Ricardo Benetton Martins |
Entity Address, Address Line Two | 1,000 Pólis de Tecnologia - Prédio 23B |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 13086-902 |
Entity Address, Country | BR |
City Area Code | +55 19 |
Local Phone Number | 21024500 |
Consolidated statement of finan
Consolidated statement of financial position R$ in Thousands, $ in Thousands | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) |
Assets | ||
Cash and cash equivalents | R$ 135727 | R$ 162827 |
Financial investments | 798,786 | 0 |
Trade receivables | 340,519 | 196,256 |
Contract assets | 134,388 | 50,625 |
Recoverable taxes | 7,785 | 1,016 |
Tax assets | 2,810 | 2,117 |
Derivatives | 896 | 8,837 |
Other assets | 29,994 | 12,874 |
Total current assets | 1,450,905 | 434,552 |
Recoverable taxes | 3,046 | 3,099 |
Deferred tax | 31,989 | 15,152 |
Judicial deposits | 3,079 | 3,083 |
Other assets | 2,974 | 2,494 |
Property, plant and equipment | 57,721 | 38,771 |
Intangible assets | 738,803 | 18,166 |
Right-of-use assets | 73,827 | 69,765 |
Total non-current assets | 911,439 | 150,530 |
Total assets | 2,362,344 | 585,082 |
Liabilities and equity | ||
Suppliers and other payables | 33,566 | 15,312 |
Loans and borrowings | 164,403 | 75,377 |
Lease liabilities | 21,214 | 14,569 |
Salaries and welfare charges | 234,173 | 141,794 |
Accounts payable for business combination | 48,923 | 0 |
Derivatives | 535 | 5,392 |
Tax liabilities | 13,345 | 6,078 |
Other taxes payable | 5,423 | 3,279 |
Dividends and interest on equity payable | 0 | 30,677 |
Contract liability | 13,722 | 9,987 |
Indemnity | 0 | 628 |
Other liabilities | 13,669 | 7,899 |
Total current liabilities | 548,973 | 310,992 |
Loans and borrowings | 624,306 | 13,853 |
Lease liabilities | 60,674 | 60,659 |
Provisions | 633 | 161 |
Accounts payable for business combination | 36,803 | 0 |
Other liabilities | 1,660 | 957 |
Total non-current liabilities | 724,076 | 75,630 |
Equity | ||
Share capital | 36 | 68,968 |
Share Premium | 915,947 | 0 |
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 equity and liabilities | R$ 2362344 | R$ 585082 |
Consolidated statements of prof
Consolidated statements of profit or loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of other comprehensive income | |||
Net revenue | R$ 1444380 | R$ 956519 | R$ 677133 |
Costs of services provided | (935,732) | (600,866) | (448,979) |
Gross profit | 508,648 | 355,653 | 228,154 |
Selling expenses | (89,654) | (65,093) | (44,802) |
General and administrative expenses | (151,681) | (81,161) | (81,197) |
Research and technological innovation expenses | (4) | (3,462) | (12,093) |
Impairment loss on trade receivables and contract assets | (497) | (196) | (1,091) |
Other income (expenses) net | (22,206) | 2,503 | 2,728 |
Operating expenses | (264,042) | (147,409) | (136,455) |
Operating profit before financial income and tax | 244,606 | 208,244 | 91,699 |
Finance income | 69,816 | 47,808 | 23,944 |
Finance cost | (104,048) | (63,261) | (29,855) |
Net finance costs | (34,232) | (15,453) | (5,911) |
Profit before income tax | 210,374 | 192,791 | 85,788 |
Income tax expense | |||
Current | (95,375) | (66,912) | (39,457) |
Deferred | 10,958 | 1,775 | 10,238 |
Net profit for the year | 125,957 | 127,654 | 56,569 |
Income attributable to: | |||
Controlling shareholders | 125,957 | 127,654 | 56,534 |
Non-controlling interest | 0 | 0 | 35 |
Net profit for the year | R$ 125957 | R$ 127654 | R$ 56569 |
Earnings per share | |||
Earnings per share – basic (in R$) | R$ 1.03 | R$ 1.06 | R$ 0.46 |
Earnings per share – diluted (in R$) | R$ 1.01 | R$ 1.04 | R$ 0.46 |
Consolidated statement of other
Consolidated statement of other comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of other comprehensive income | |||
Net profit for the year | R$ 125957 | R$ 127654 | R$ 56569 |
Items that are or may be reclassified subsequently to profit or loss | |||
Exchange variation in foreign investments | 23,830 | 9,620 | 1,185 |
Total comprehensive income for the year | 149,787 | 137,274 | 57,754 |
Total comprehensive income attributed to | |||
Owners of the Company | 149,787 | 137,274 | 57,719 |
Non-controlling interest | 0 | 0 | 35 |
Total comprehensive income for the year | R$ 149787 | R$ 137274 | R$ 57754 |
Consolidated statement of chang
Consolidated statement of changes in equity - BRL (R$) R$ in Thousands | Total | Total equity | Share capital | Share premium | Capital reserve | Legal reserve | Retained earnings reserve | Stock redemption reserve | Retained earnings | Other comprehensive income | Non-controlling interests |
Equity at beginning of the period at Dec. 31, 2018 | R$ 120570 | R$ 118043 | R$ 30098 | R$ 0 | R$ 3931 | R$ 6020 | R$ 26859 | R$ 48520 | R$ 0 | R$ 2615 | R$ 2527 |
Capital increase – Stock redemption reserve | 0 | 0 | 43,500 | 0 | 0 | 0 | 0 | (43,500) | 0 | 0 | 0 |
Net profit for the year | 56,569 | 56,534 | 0 | 0 | 0 | 0 | 0 | 0 | 56,534 | 0 | 35 |
Spin-off of the subsidiaries of Sensedia S.A. and CI&T IOT | (7,541) | (4,979) | (4,630) | 0 | 213 | 0 | (567) | 0 | 0 | 5 | (2,562) |
Additional dividends of previous year | (26,567) | (26,567) | 0 | 0 | 0 | 0 | (26,567) | 0 | 0 | 0 | 0 |
Share-based compensation | 3,170 | 3,170 | 0 | 0 | 3,170 | 0 | 0 | 0 | 0 | 0 | 0 |
Share-based plan cancellation | (29,206) | (29,206) | 0 | 0 | (3,202) | 0 | (26,004) | 0 | 0 | 0 | 0 |
Tax effect on the compensation of the share-based plan | 6,244 | 6,244 | 0 | 0 | 0 | 0 | 6,244 | 0 | 0 | 0 | 0 |
Transfer of stock redemption reserve | 0 | 0 | 0 | 0 | 0 | 0 | 5,020 | (5,020) | 0 | 0 | 0 |
Other comprehensive income for the year | 1,180 | 1,180 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,180 | 0 |
Shareholders' contribution and distributions to shareholders | |||||||||||
Constitution of retained earnings reserve | 0 | 0 | 0 | 0 | 0 | 0 | 38,994 | 0 | (38,994) | 0 | 0 |
Legal reserve | 0 | 0 | 0 | 0 | 0 | 2,826 | 0 | 0 | (2,826) | 0 | 0 |
Dividends | (14,714) | (14,714) | 0 | 0 | 0 | 0 | 0 | 0 | (14,714) | 0 | 0 |
Equity at end of the period at Dec. 31, 2019 | 109,705 | 109,705 | 68,968 | 0 | 4,112 | 8,846 | 23,979 | 0 | 0 | 3,800 | 0 |
Net profit for the year | 127,654 | 127,654 | 0 | 0 | 0 | 0 | 0 | 0 | 127,654 | 0 | 0 |
Additional dividends of previous year | (16,263) | (16,263) | 0 | 0 | 0 | 0 | (16,263) | 0 | 0 | 0 | 0 |
Share-based compensation | 2,652 | 2,652 | 0 | 0 | 2,652 | 0 | 0 | 0 | 0 | 0 | |
Tax effect on the compensation of the share-based plan | 45 | 45 | 0 | 0 | 0 | 0 | 45 | 0 | 0 | 0 | |
Interest on shareholders' equity | (4,276) | (4,276) | 0 | 0 | 0 | 0 | 0 | (4,276) | 0 | 0 | |
Other comprehensive income for the year | 9,620 | 9,620 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9,620 | 0 |
Shareholders' contribution and distributions to shareholders | |||||||||||
Constitution of retained earnings reserve | 0 | 0 | 0 | 0 | 0 | 0 | 87,754 | (87,754) | 0 | 0 | |
Legal reserve | 0 | 0 | 0 | 0 | 0 | 4,947 | 0 | (4,947) | 0 | 0 | |
Minimum mandatory dividends | (30,677) | (30,677) | 0 | 0 | 0 | 0 | 0 | (30,677) | 0 | 0 | |
Equity at end of the period at Dec. 31, 2020 | 198,460 | 198,460 | 68,968 | 0 | 6,764 | 13,793 | 95,515 | 0 | 0 | 13,420 | 0 |
Net profit for the year | 125,957 | 125,957 | 0 | 0 | 0 | 0 | 0 | 0 | 125,957 | 0 | 0 |
Spin-off of the subsidiaries of Sensedia S.A. and CI&T IOT | (8,829) | (8,829) | (9,426) | 0 | 597 | 0 | 0 | 0 | 0 | 0 | 0 |
Merger of Hoshin investment | 108 | 108 | 0 | 0 | 108 | 0 | 0 | 0 | 0 | 0 | 0 |
Additional dividends of previous year | (95,368) | (95,368) | 0 | 0 | 0 | 0 | (95,368) | 0 | 0 | 0 | 0 |
Shares exercised of executive officers | 0 | 0 | 28,697 | 0 | (28,697) | 0 | 0 | 0 | 0 | 0 | 0 |
Share-based compensation | 2,498 | 2,498 | 0 | 0 | 2,498 | 0 | 0 | 0 | 0 | 0 | 0 |
Tax effect on the compensation of the share-based plan | (147) | (147) | 0 | 0 | 0 | 0 | (147) | 0 | 0 | 0 | 0 |
Interest on shareholders' equity | (6,288) | (6,288) | 0 | 0 | 0 | 0 | (6,288) | 0 | 0 | 0 | 0 |
Other comprehensive income for the year | 23,830 | 23,830 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23,830 | 0 |
Corporate restructuring | 0 | 0 | (88,206) | 0 | 95,711 | (13,793) | 6,288 | 0 | 0 | 0 | |
Shareholders' contribution and distributions to shareholders | |||||||||||
Capital contribution | 3 | 3 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Initial public offering proceeds, gross | 915,947 | 915,947 | 0 | 915,947 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Initial public offering costs, net of taxes | (66,876) | (66,876) | 0 | 0 | (66,876) | 0 | 0 | 0 | 0 | 0 | 0 |
Constitution of retained earnings reserve | 0 | 0 | 0 | 0 | 0 | 0 | 125,957 | 0 | (125,957) | 0 | 0 |
Equity at end of the period at Dec. 31, 2021 | R$ 1089295 | R$ 1089295 | R$ 36 | R$ 915947 | R$ 10105 | R$ 0 | R$ 125957 | R$ 0 | R$ 0 | R$ 37250 | R$ 0 |
Consolidated statement of cash
Consolidated statement of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flow from operating activities | |||
Net profit for the year | R$ 125957 | R$ 127654 | R$ 56569 |
Adjustments for: | |||
Depreciation and amortization | 48,354 | 29,882 | 25,577 |
Loss on the sale of property, plant and equipment and intangible assets | 1,237 | 689 | 567 |
Interest, monetary variation and exchange rate changes | 45,627 | 7,789 | 2,971 |
Interest on accounts payable for business combinations | 3,091 | 0 | 0 |
Interest on lease | 6,369 | 5,023 | 6,135 |
Unrealized loss (gain) on financial instruments | 3,084 | (2,512) | (919) |
Income tax expenses | 84,417 | 65,137 | 29,219 |
Impairment losses on trade receivables | 280 | 414 | 52 |
Provision for (reversal of) impairment losses on contract assets | 217 | (218) | 1,039 |
Write-off of intangible assets | 21,894 | 0 | 0 |
Provision for labor risks | 472 | (12) | 23 |
Provision for indemnity | 0 | (18) | 14,891 |
Share-based plan | 2,531 | 942 | 3,170 |
Exchange rate changes on indemnity | 0 | (4,324) | 0 |
Others | 98 | 469 | 205 |
Variation in operating assets and liabilities | |||
Trade receivables | (102,300) | (47,848) | (32,673) |
Contract assets | (52,876) | (8,339) | (4,253) |
Other taxes recoverable | (13,806) | 461 | 20 |
Tax assets | (91) | 507 | 789 |
Judicial deposits | 4 | 0 | (105) |
Suppliers | 12,215 | 6,746 | 1,697 |
Salaries and welfare charges | 63,083 | 49,086 | 16,825 |
Tax liabilities | (17,364) | (12,275) | (11,398) |
Other taxes payable | 1,698 | (407) | (346) |
Contract liabilities | 1,922 | (7,138) | 8,595 |
Payment of share-based indemnity | (628) | (43,354) | 0 |
Other receivables and payables, net | (21,054) | (11,435) | 5,833 |
Cash generated from operating activities | 214,431 | 156,919 | 124,483 |
Income tax paid | (64,150) | (47,044) | (25,085) |
Interest paid on loans and borrowings | (12,149) | (3,880) | (1,912) |
Interest paid on lease | (5,753) | (5,023) | (6,129) |
Net cash from operating activities | 132,379 | 100,972 | 91,357 |
Cash flows from investment activities | |||
Acquisition of property, plant and equipment and intangible assets | (29,907) | (21,391) | (19,893) |
Escrow payment | 0 | 0 | (1,496) |
Redemption of financial investments | 0 | 0 | 4,838 |
Financial investments | (784,915) | 0 | 0 |
Acquisition of subsidiary net of cash acquired | (692,722) | 0 | 0 |
Net cash used in investment activities | (1,507,544) | (21,391) | (16,551) |
Cash flow from financing activities | |||
Share-based plan contributions | 1,282 | 0 | 0 |
Issuance of common shares at initial public offering | 915,947 | 0 | 0 |
Transaction cost of offering | (55,874) | 0 | 0 |
Dividends paid | (126,045) | (30,977) | (40,059) |
Interest on equity, paid | (6,288) | (4,276) | (2,676) |
Payment of lease liabilities | (17,656) | (15,500) | (10,949) |
Proceeds from loans and borrowings | 740,596 | 144,269 | 8,179 |
Payment of loans and borrowings | (75,196) | (88,107) | (24,161) |
Net cash from financing activities | 1,376,766 | 5,409 | (69,666) |
Net increase in cash and cash equivalents | 1,601 | 84,990 | 5,140 |
Cash and cash equivalents as of January 1st | 162,827 | 79,500 | 77,079 |
Exchange variation effect on cash and cash equivalents | (20,949) | (1,663) | (1,464) |
Cash reduction due to spin-off effect | (7,752) | 0 | (1,255) |
Cash and cash equivalents as of December 31st | R$ 135727 | R$ 162827 | R$ 79500 |
Operational context
Operational context | 12 Months Ended |
Dec. 31, 2021 | |
Operational context | |
Operational context | 1 Operational context CI&T Inc (“ CI&T” or “ Company ”), pre viously named CI&T Cayman, is a publicly held company incorporated in the Cayman Islands o n June 2021, headquartered at Rua Dr. Ricardo Benetton Martins, 1000 C ity of Campinas, State of São Paulo, Brazil . As a holding company, it is mainly engaged in the investment, as a partner or shareholder, in other companies, consortia or joint ventures in Brazil and other countries where most of the Company’s operations are located. The Company’s subsidiaries are mainly engaged in the development of customizable software through implementation of software solutions, including Machine Learning, Artificial Intelligence (AI), Analytics, Cloud and Mobility technologies. These consolidated financial statements comprise the Company and its subsidiaries (collectively referred to as the “Group”). Unless otherwise indicated o r if the context otherwise requires, all references in th ese consolidated financial statements to “CI&T Brazil” refer to CI&T Software S.A ., one On November 10, 2021 the Company completed its initial public offering (“IPO”) and CI&T Inc offered 15,000,000 Class A common shares, of which 11,111,111 were offered by CI&T Inc and 3,888,889 were offered by certain selling shareholders. The IPO price per Class A common share was US$15.00. On November 15, 2021, the IPO was concluded with the total offering of US$225,000, of which the Group received net proceeds of R$ 860,993 (US$156,667), after deducting the underwriting discounts and commissions. The Company incurred incremental costs directly attributable to the public offering in the amount of R$ 66,876, net of taxes. The Group Class A common shares are traded on the New York Stock Exchange, or NYSE, under the symbol “CINT”. Corporate restructuring i. Merger s in 2021 - in connection with CI&T Brazil On April 30, 2021, the Extraordinary Shareholders’ Meeting of CI&T Brazil approved the reverse merger of Hoshin Empreendimentos S.A. (“Hoshin”) into CI&T Brazil . The purpose of this merger is to simplify the corporate structure of Hoshin and CI&T Brazil, and to reduce the operational, administrative, and financial expenses of both. The transaction was recorded at book value in the amount of R$ 108. ii. Spin-off in 2021 - in connection with CI&T Brazil The Extraordinary Shareholders’ Meeting of CI&T Brazil , held on April 30, 2021 approved the partial spin-off of the interest in subsidiary CI&T IOT Comércio de Hardware e Software Ltda. (“CI&T IOT”). The valuation of the spin-off portion was carried out at book value based on the statement of financial position of CI&T IOT as of March 31, 2021. iii. R eorganization transactions in 2021 – in connection with CI&T Inc CI&T Inc. was incorporated as an exempted, limited liability company in Cayman Islands to become the holding entity of CI&T Software S.A. (CI&T Brazil) in connection with the initial public offering. Prior to the IPO, CI&T Inc had not begun operations, had nominal assets and liabilities, and no material contingent liabilities or commitments. As a holding company, it is mainly engaged in the investment in other companies, consortia or joint ventures, as a partner or shareholder, in Brazil and other countries where most of the Company's operations are located. On October 04, 2021, CI&T established, as a sole member, the subsidiary CI&T Delaware LLC (“CI&T Delaware”). The main office is located at 251 Little Falls Drive, Wilmington, Delaware, 19808. On November 8, 2021, CI&T Brazil ’s shares were contributed to CI&T Delaware and, subsequently the CI&T Delaware’s shares were transferred to CI&T Inc . Until this corporate reorganization, CI&T Brazil, an operating company, was the ultimate holding of the Group, and it consolidated the results of all companies until that date. The Group accounted for the restructuring as a business combination of entities under common control, and the pre-combination carrying amounts of CI&T Brazil are included in the CI&T’s consolidated financial statements with no fair value uplift. Thus, these consolidated financial statements reflect: (i) The historical operating results and financial position of CI&T Brazil prior the restructuring; (ii) The consolidated results of the Group following the restructuring; (iii) The assets and liabilities of CI&T Brazil and its then subsidiaries at their historical cost; (iv) The number of ordinary shares issued by CI&T, as a result of the restructuring is reflected retroactively to January 1, 2020, for purposes of calculating earnings per share; (v) CI&T Brazil shares were contributed in CI&T Delaware at its book value as at November 8, 2021; (vi) As the remaining equity reserves of CI&T Brazil are no longer applicable to CI&T, they were added to the initial capital reserve balance (see note 22.c). iv. Spin-off in The Extraordinary General Meeting, held on July 31, 2019, approved the partial spin-off of the investment in the subsidiary Sensedia S.A. (related to 64.38% of the total subsidiary’s share capital) with transfer of its net equity to the Company’s shareholders. The valuation of the spin-off portion was carried out at book value based on the statement of financial position of Sensedia S.A. The value of the spin-off portion was R$ 4,630. |
List of direct and indirect sub
List of direct and indirect subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
List of direct and indirect subsidiaries | |
List of direct and indirect subsidiaries | 2 List of direct and indirect subsidiaries Information on the Company's direct and indirect subsidiaries is presented below: December 31, 2021 December 31, 2020 December 31, 2019 Subsidiaries Country of Origin Direct Indirect Direct Indirect Direct Indirect CI&T Delaware LLC (a) United States 100% - - - - - CI&T Software S.A. Brazil - 100% - - - - CI&T, Inc. ("CI&T US") United States - 100% 100% - 100% - CI&T Software Inc. ("CI&T Canada") Canada - 100% - 100% - 100% CI&T UK Limited. ("CI&T UK") United Kingdom - 100% - 100% - 100% CI&T Argentina. S/A Argentina - 100% - 100% - 100% CI&T Japan, Inc. Japan - 100% 100% - 100% - CI&T China Inc. China - 100% - 100% - 100% CI&T IOT (b) Brazil - - 100% - 100% - CI&T Portugal Unipessoal Lda. (c) Portugal - 100% 100% - - - CI&T Australia PTY Ltd. (d) Australia - 100% 100% - - - Dextra Inc. (e) United States - 100% - - - - CINQ Inc. (e) United States - 100% - - - - (a) Refers to note 1.a.iii. (b) In July 2019, the subsidiary CI&T IOT Comércio de Hardware e Software Ltda. started its operations. The subsidiary’s main activity is the sale of technology devices and software on environment management platforms for efficient use of spaces. In A pril 2021 the partial spin-off on the CI&T IOT investment was approved with transfer of its net equity to the CI&T Brazil’s shareholders. (c) In June 2020, the subsidiary CI&T Portugal LDA ("CI&T Portugal") started operations in the city of Lisbon to meet the strategy of global expansion and strengthen the presence in the European market, acting with the same corporate purpose as the Group. (d) In October 2020, the subsidiary CI&T Australia PTY LTD was incorporated in the city of Brisbane, acting with the same corporate purpose as the Group. (e) In August 2021, the CI&T Brazil completed the acquisition of 100% of the shareholding control of Dextra Investimentos S.A. and its subsidiaries (see note 9). |
Basis of accounting
Basis of accounting | 12 Months Ended |
Dec. 31, 2021 | |
Basis of accounting | |
Basis of accounting | 3 Basis of accounting These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The issuance of these consolidated financial statements was authorized by the Company’s Management and Audit Committee on April 22, 2022. |
Functional and presentation cur
Functional and presentation currency | 12 Months Ended |
Dec. 31, 2021 | |
Functional and presentation currency | |
Functional and presentation currency | 4 Functional and presentation currency These consolidated financial statements are presented in Brazilian Reais (“R$”), which is the Company's functional currency. All balances are rounded to the nearest thousands, except when otherwise indicated. The main exchange rates used in the preparation of the Company's financial statements are Brazilian Reais, US dollar, Yen, Euro and Australian dollar, as the Company’s subsidiaries have the following functional currencies: CI&T Brazil has the local currency, the Brazilian Reais, as its functional currency; CI&T Inc (USA) has the local currency, the US dollar, as its functional currency; CI&T Japan Inc has the local currency, Yen, as its functional currency; CI&T Portugal has the local currency, Euro, as its functional currency; and CI&T Australia has the local currency, Australian dollar, as its functional currency. |
Use of judgments and estimates
Use of judgments and estimates | 12 Months Ended |
Dec. 31, 2021 | |
Use of judgments and estimates | |
Use of judgments and estimates | 5 Use of judgments and estimates In preparing these consolidated financial statements , Management has made judgments and estimates that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The revisions to estimates are recognized prospectively. a. Judgments Information about judgments made in the application of accounting policies that have significant effects on the amounts recognized in the financial statements are included in the following notes: • Note 7 - lease term: whether the Group is reasonably certain to exercise extension options ; • Note 23 - revenue recognition: whether service revenue is recognized over time or at point in time. b. Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next fiscal year is included in the following note: • Note 9 – acquisition of subsidiary: fair value of the consideration transferred, fair value of the assets acquired, and liabilities assumed. Measurement of fair values Several of the Company's accounting policies and disclosures require the measurement of fair values for both financial and non-financial assets and liabilities . The Group has established a control framework with respect to the measurement of fair value that includes the review of significant fair value measurements, significant unobservable data and valuation adjustments. If third-party information, such as broker quotes or pricing services, is used to measure fair values, the valuation team assesses the evidence obtained from third parties to support the conclusion that such valuations meet the requirements of the accounting standards, including the level in the fair value hierarchy in which the valuations should be classified. When measuring the fair value of an asset or a liability, the Group uses observable market data as much as possible. Fair values are classified at different levels in a hierarchy based on the information (inputs) used in the valuation techniques as follows: • Level 1: Quoted prices (not adjusted) in active markets for identical assets or liabilities. • Level 2: Inputs, except for quoted prices, included in Level 1, which are observable for the asset or liability, either directly (prices) or indirectly (derived from prices). • Level 3: Inputs for the asset or liability, which are not based on observable market data (unobservable inputs). Additional information on the assumptions used to measure fair values is included in the following notes: • Note 9 • Note 21 – share-based payment transactions and the compensation for the cancellation of the share based plan; and • Note 28 – financial instruments. |
Basis of measurement
Basis of measurement | 12 Months Ended |
Dec. 31, 2021 | |
Basis of measurement | |
Basis of measurement | 6 Basis of measurement The consolidated financial statements were prepared base d on historical cost, except for derivative financial instruments, and liabilities for the cancellation of the share-based plan, which are measured at fair value at each reporting date. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Significant accounting policies | 7 Significant accounting policies The Company applied the accounting policies described below in a consistent manner to all the years presented in the consolidated financial statements. a. Basis of consolidation i. Business combination The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. Any goodwill that may arise is tested annually for impairment. Any gains on a bargain purchase are recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not ii. Subsidiaries The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date in which control commences until the date in which control ceases. iii. Non-controlling interests (“NCI”) NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Company’s interest in a subsidiary that do not result in loss of control are accounted for as equity transactions. According to note 1.a. (iv) a with the partial spin-off of the subsidiary Sensedia S.A. in 2019, the Company no longer has non-controlling interest. iv. Transactions eliminated by consolidation Intra-group balances and transactions, and any unrealized income or expenses (except for foreign currency translation gain or losses) arising from intra-group transactions, are eliminated. Unrealized losses arising are eliminated in the same way as unrealized gain, but only to the extent that there is no evidence of impairment. b. Foreign currency i. Transactions in foreign currency Transactions in foreign currency are translated into the respective functional currencies of the Company and its subsidiaries by the exchange rates at the dates of each such transaction. Monetary assets and liabilities denominated in foreign currencies on the reporting date are translated to the functional currency at the exchange rate on that date. Non-monetary assets and liabilities that are measured at fair value in foreign currency are retranslated to the functional currency at the exchange rate on the date in which the fair value was determined. Non-monetary items that are measured based on historical cost in foreign currency are translated at the exchange rate on the transaction date. Foreign currency differences are generally recognized in profit or loss and presented within finance costs. However, foreign currency differences resulting from the translation of investments abroad are recognized in other comprehensive income. ii. Foreign operations Assets and liabilities from foreign operations, including goodwill and fair value adjustments resulting from acquisitions, are translated into Reais at the exchange rates prevailing at the reporting date. Income and expenses from operations abroad are translated into Brazilian reais at the exchange rates that represent the average monthly rates for the respective period. Foreign currency differences are recognized in other comprehensive income. c. Revenue from contracts with customers Information on the Group's accounting policies related to contracts with customers is provided in note 23 . d. Employee benefits i. Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. These liabilities are recognized at the amount of the expected payment if the Company has a present legal obligation to pay this amount due to service provided by the employee and the obligation can be estimated reliably. ii. Share-based payment arrangements The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as personnel expense, with a corresponding increase in equity, during the period in which employees unconditionally acquire the right to the awards. Amounts recognized as expenses are adjusted to reflect the number of awards for which there is an expectation that service and performance conditions will be met in such a way that the final amounts recognized as expenses are based on the number of awards that actually meet the service and performance conditions on the vesting date. The Group recognizes each expense according to the services rendered for each subsidiary where the employee participating in the plan works, with the counterpart at: (a) increase in equity if the services rendered are received in a transaction with a share-based payment settled in equity instruments; (b) or, if the services rendered are acquired in a transaction with a share-based payment settled in cash (or other assets), a liability must be recognized The fair value of the amount payable to employees related to the rights on the valuation of shares, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities during the period in which employees unconditionally acquire their right to payment. The liability is remeasured at each reporting date and on the settlement date, based on the fair value of the rights on the valuation of the shares. Any changes in the fair value of the liability are recognized in the profit or loss . When the granting of an equity instrument is canceled or settled during the vesting period, the entity must account for the cancellation or settlement as an acceleration of the vesting period and, therefore, must immediately recognize the amount that would be recognized as services received over the remaining vesting period. In cases where the stock option plan is cancelled, any payments made to employees at the time of the cancellation must be accounted for as a repurchase of an equity instrument, that is, in a reduction account of shareholders' equity, except if the payment exceeds the fair value of the equity instruments granted, measured on the repurchase date. Any surplus must be recognized as an expense for the period. However, if the share-based payment arrangement present liabilities components, the entity must remeasurement the fair value of the corresponding liability on the date of cancellation or settlement. Any payment made to settle these liability components should be accounted for as an extinguishment of the liability. e. Financial income and financial expenses The Group's financial income and financial • Interest income; • Interest expense; • The net gains or loss on financial assets measured at fair value through profit or loss; • The foreign currency gains or losses on financial assets and financial liabilities. Interest income or expense is recognized using the effective interest method. The Company classifies dividends and interest on equity paid as cash flows used in financing activities. The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts though the expected life of the financial instrument to: • the gross carrying amount of the financial asset; or • at the amortized cost of the financial liability. In calculating interest income or expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not impaired) or the amortized cost of the liability. However, for financial assets that have become credit-impaired after the initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis. f. Income tax Income tax expenses comprises current and deferred income and social security contribution taxes. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. The Company has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted for them under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. i. Current tax Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year and any adjustment to taxes payable or receivable in respect of prior years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income tax, if any. It is measured using tax rates enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. i i Deferred taxes Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: (i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and (ii) Temporary differences related to investments in subsidiaries to the extent that the Company can control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets are recognized in respect of tax losses and unused deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for each individual subsidiary. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that they are no longer probable. Deferred tax assets and liabilities are measured based on the rates that are expected to be applied to temporary differences when they are reversed, based on the rates that were enacted up to the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the way the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if certain criteria are met. g. Property, plant and equipment i. Recognition and measurement Property, plant and equipment items are measured at the historical cost of acquisition or construction, deducted from accumulated depreciation and any impairment losses. Any gain or loss on the disposal of an item of property, plant and equipment is recognized in profit or loss. ii. Subsequent expenditure Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. iii. Depreciation Depreciation is calculated to write-off the cost of items of property, plant and equipment, less their estimated residual values using the straight-line method based on the estimated useful lives and is recognized in profit and loss. Land is not depreciated. The estimated useful lives of property, plant and equipment for current and comparative years are as follows: IT equipment 2 to 5 years Furniture and fixtures 7-10 years Vehicles 5 years Leasehold improvements 1 to 8 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. h. Intangible assets and goodwill i. Recognition and measurement Goodwill Goodwill arising from the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Brands and Customer relationship Brands and customer relationship acquired through business combinations are recognized at their fair value at the acquisition date and depreciated over their expected benefit period. Software Software licenses are capitalized based on the costs incurred to acquire the software and prepare them to be ready for use and depreciated over their expected benefit period. Costs associated with software maintenance are recognized as expenses as incurred. Development costs directly attributable to the design and testing of identifiable and unique software products, controlled by the Company, are recognized as intangible assets. Directly attributable costs, which are capitalized as a part of the software product, include the costs of employee allocated to software development and an appropriate portion of the applicable indirect expenses. Other development costs that do not meet these criteria for capitalization are recognized as expenses as they are incurred. Development costs previously recognized as expenses are not recognized as assets in subsequent periods. Non-compete agreement Non-compete agreements acquired through business combinations are recognized at their fair value at the acquisition date and are amortized over the term of the agreements. Software in progress Software in progress is capitalized only if the expenditure can be measured reliably, the product or progress is technically and commercial feasible, future economic benefits are probable, and the Company intends to and has sufficient intention and resources to complete development and use or sell the asset. Otherwise, it is recognized in profit and loss as incurred. Subsequent to initial recognition, intangible in progress is measured at cost less any accumulated impairment losses. ii. Subsequent expenditure Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including trademarks and patents, are recognized in profit or loss as incurred. iii. Amortization Amortization is calculated using the straight-line method based on the estimated useful lives of the items, net of their estimated residual values. Amortization is generally recognized in profit or loss. Goodwill is not amortized. The estimated useful lives are as follows: Network software 5 years Internally developed software 3 years Customer relationship 6 - 8 years Non-compete agreement 5 years Brands 1 - 2 years Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate. i) Financial instruments i. Recognition and initial measurement Trade receivables are initially recognized on the date they were originated. All other financial assets and liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not measured at fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issue. Trade receivables without a significant financing component are initially measured at the transaction price. ii. classification and subsequent measurement Financial assets Upon initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI — debt investment; FVOCI — equity investment; or FVTPL — fair value through profit or loss. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the presentation period following the change in business model. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at FVTPL: i. It is maintained within a business model aimed at maintaining financial assets to receive contractual cash flows; and ii. It is contractual terms give rise on specific dates to cash flows that are related to the payment of principal and interest on the outstanding principal value. All financial assets not classified as measured at amortized cost, as described above, are classified as at FVTPL. This includes all derivative financial assets. Upon initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured Financial asset - Business model assessment The Company carries out an assessment of the objective of the business model in which a financial asset is held in the portfolio because it better reflects the way the business is managed, and the information is provided to Management. Information considered includes: i. The stated policies and objectives set for the portfolio and the operation of those policies in practice. They include whether the Management strategy focuses on achieving contractual interest income, maintaining a particular interest rate profile, matching the duration of financial assets with the duration of related liabilities or expected cash outflows, or realizing cash flows through the sale of assets; ii. How the portfolio's performance is assessed and reported to the Group's Management; iii. The risks that affect the performance of the business model (and the financial assets held according to that business model) and how those risks are managed; iv. How the managers of the business are compensated – e.g., whether compensation is based on the fair value of assets managed or on the contractual cash flows earned; and v. The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales. Transfers of financial assets to third parties in transactions that do not qualify for are not considered sales, in a manner consistent with the continuous recognition of the assets of the Company and its subsidiaries. Financial assets held for trading or managed and whose performance is evaluated on a fair value basis are measured at fair value through profit or loss. Financial asset – assessment whether contractual cash flows are solely principal and interest payments For the purposes of this assessment 'principal' is defined as the fair value of the financial asset upon initial recognition. Interest' is defined as consideration for the time value of money and the credit risk associated with the principal amount outstanding over a given period of time and for the other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. The Group considers the contractual terms of the instrument to assess whether contractual cash flows are solely payments of principal and interest. This includes assessing whether the financial asset contains a contractual term that could change the timing or value of the contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: • Contingent events that change the amount or timing of cash flows; • Terms that can adjust the contractual rate, including variable rates features; • Prepayment and extension features; and • Terms that limit the Group's access to cash flows from specific assets (e.g., based on the performance of an asset). The prepayment feature is consistent with the principal and interest payment criteria if the prepayment amount mostly represents unpaid principal and interest on the outstanding principal amount – which may include reasonable additional compensation for early termination of the contract. In addition, for a financial asset acquired for a value less than or greater than the nominal value of the contract, the permission or requirement for prepayment for an amount that represents the nominal value of the contract plus contractual interest (which also may include reasonable additional compensation for early termination of the contract) accumulated (but not paid) is treated as consistent with this criterion if the fair value of the prepayment is insignificant at initial recognition. Financial assets - Subsequent measurement and profit and loss • Financial assets at FVTPL These assets are subsequently measured at fair value. The net gain, including interest, is recognized in profit or loss. • Financial assets at amortized cost These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gains or losses on derecognition are recognized in the profit or loss. Financial liabilities - classification, subsequent measurement and profit and loss Financial liabilities were classified as measured at amortized cost or FVTPL. A financial liability is classified as measured at fair value through profit or loss if it is a derivative or is designated as such upon initial recognition. Financial liabilities measured at FVTPL are measured at fair value and net income, including interest, is recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense, foreign exchange gains and losses are recognized in profit or loss. Any gains or losses on derecognition are also recognized in profit or loss. iii. Derecognition Financial assets The Group derecognizes a financial asset when the contractual rights to the cash flows of the asset expire, or when the Group transfers the contractual rights to receive the contractual cash flows on a financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or in which the Group neither transfers nor substantially maintains all the risks and rewards of ownership of the financial asset nor retains control over the financial asset. Financial liabilities The Group derecognizes a financial liabilities when their contractual obligations are discharged, cancelled or expire. The Group also derecognizes a financial liabilities when their terms are modified and the cash flows of the modified liabilities are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Upon derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. iv. Offsetting The financial assets or liabilities are compensated, and the net value presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the amounts and intends to settle them on a net basis or to dispose of the asset and settle the liabilities simultaneously. v. Derivative financial instruments The Group holds derivative financial instruments to manage its exposures to the risks of changes in foreign currency and interest rates. Derivatives are initially measured at fair value. After initial recognition, derivatives are measured at fair value and changes in fair value are recorded in profit or loss. j. Equity Share capital On December 31, 2021, the Company´s share capital is R$ 36 22.a Share premium The share premium refers to the difference between the subscription price that the shareholders paid for the shares and their nominal value. Capital reserve The breakdown of capital reserves is arising from the corporate restructuring occurred in 2021 (note 1.a), share-based compensation (note 21.d) and the share issuance costs (note 21.c). k. impairment Non-derivative financial assets Financial instruments and contract assets The Group recognizes provisions for expected credit losses on: • Financial assets measured at amortized cost • Contract assets Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime expected credit losses. Management considers a financial asset to be in default when: • It is unlikely that the creditor will fully pay its credit obligations to the Group, without resorting to actions such as the realization of the guarantee (if any); or • The financial asset is more than 360 days overdue; • Lifetime credit losses are the expected credit losses that result from all possible default events over the expected life of the financial instrument. The maximum period considered in the expected credit loss estimate is the maximum contractual period over which the Group is exposed to credit risk. Measurement of expected credit losses The Group considers evidence of impairment of assets measured at amortized cost at the collective level. The assets are assessed collectively for any loss of value that could have occurred but had not yet been identified. Assets are assessed collectively for impairment based on the grouping of assets with similar risk characteristics. In assessing the impairment as a whole, the Group uses historical trends in the probability of default, the recovery period and the loss amounts incurred, adjusted to reflect the Management’s judgment on the assumptions if the current economic and credit conditions are such that actual losses are probable to be higher or lower than those suggested by historical trends. A loss by reduction to the recoverable amount is calculated as the difference between the recorded amount and the present value of estimated future cash flows, discounted by the original effective interest rate of the asset. Losses are recognized in profit or loss and deducted from the gross carrying amount of the assets. The allowance for loss on financial assets measured at amortized cost is deducted from the gross carrying amount of the assets. Write-off The gross carrying amount of a financial asset is written off when the Group has no reasonable expectation of recovering the financial asset in whole or in part. With respect to customers, the Group assesses the time and value of the write-off based on whether there is reasonable expectation of recovery. The Group does not expect any significant recovery of the amount written off. However, written off financial assets may still be subject to credit for the fulfillment of the Group’s procedures for recovering the amounts due. Non-financial assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal. Value in use is based on estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market evaluations of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the carrying amount of the asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. Impairment losses relating to goodwill are not reversed. For other assets, impairment losses are reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization if no impairment losses had been recognized. l. Provisions Disputes and litigations The provision for disputes and litigation is recognized when it is probable that the Group will be required to make future payments as a result of past events. Such payments include, but are not limited to, the various claims, processes and actions initiated by both third parties and the Company, relating to labor disputes, complaints from tax authorities and other judicial matters. Provision for indemnity of the stock options plan The provision for the indemnity of the stock options plan was recognized upon the cancellation of all programs and agreements entered into in the Group’s Stock Option Plan. Payments to the beneficiaries of the plan grant to the Company full discharge on any right related to the Plan. m. Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if the contract transfers the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement or upon the modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component of the lease based on individual prices. However, for property leases, the Group elected to not separate the non-lease components and account for the lease and non-lease components as a single component. The Group recognizes a right-of-use asset and a lease liability at lease commencement. The right-to-use asset is initially measured at cost, which comprises the initial measurement amount of the lease liability, adjusted for any lease payments made at or before the commencement date, less any leasing incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In this case, the right of use will be depreciated over the useful life of the underlying asset, which is determined in same basis as that of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of lease liabilities. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if this rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as a discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external sources of financing and making some adjustments to reflect the terms of the contract and the type of leased asset. Lease payments included in the measurement of the lease liability comprise the following: • Fixed payments, including in-substance fixed payments; and • Amounts expected to be payable under a residual value guarantee. Regarding the option to extend office leases, the Group applies a 5-year additional to determine ROU amounts, except when there is no certain probability of continuity of activities in such locations. Renewal clauses generally use an inflation update index (IGPM or IPCA) that is updated annually. For the periods disclosed, the Group does not have lease agreemen |
Changes in significant accounti
Changes in significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Changes in significant accounting policies | |
Changes in significant accounting policies | 8 The Group has initially adopted Interest Rate Benchmark Reform Phase 2 – Amendments to IFRS9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 beginning January 1, 2021. The Group applied the Phase 2 amendments retrospectively. However, in accordance with the exceptions permitted in the Phase 2 amendments, since the Group had no transactions for which the benchmark rate had been replaced with an alternative benchmark rate as of December 31, 2020, there is no impact on opening equity balances as a result of retrospective application. Specific policies applicable beginning January 1, 2021 for interest rate benchmark reform The Phase 2 amendments provide practical relief from certain requirements in IFRS Standards. These reliefs relate to modifications of financial instruments and hedging relationships triggered by a replacement of a benchmark interest rate in a contract with a new alternative benchmark rate. If the basis for determining the contractual cash flows of a financial asset or financial liability measured at amortized cost changes as a result of interest rate benchmark reform, then the Group updates the effective interest rate of the financial asset or financial liability to reflect the changes required by the reform. Changes in the basis for determining the contractual cash flows are required by interest rate benchmark reform if the following conditions are met: • the change is necessary as a direct consequence of the reform; and • the new basis for determining the contractual cash flows is economically equivalent to the previous basis – i.e. the basis immediately before the change. If changes are made to a financial asset or financial liability, in addition to changes to the basis for determining the contractual cash flows required under interest rate benchmark reform, then the Group first updates the effective interest rate of the financial asset or financial liability to reflect the change required under interest rate benchmark reform. Subsequently, the Group applies the accounting policies to implement the modifications set out above to the additional changes. Amendments also provide for an exception to use a revised discount rate that reflects the change in interest rates when remeasuring a lease liability because of a lease modification that is required by an interest rate benchmark reform. Finally, the Phase 2 amendments provide for a series of temporary exceptions from certain hedge accounting requirements when a change required by interest rate benchmark reform occurs to a hedged item and/or hedging instrument that permits the hedge relationship to be continued without interruption. The Group does not apply hedge accounting. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Business combination | 9 Business combination On June 26, 2021, the CI&T Brazil entered into a purchase agreement to acquire 100% of the shareholding control of Dextra Investimentos S.A. (“Dextra Holding”) and its subsidiaries (“Dextra Group”). On July 22, 2021, the transaction was approved by the Administrative Council for Economic Defense (CADE). All conditions precedent were met on August 10, 2021, the date on which the closing term of the acquisition was formalized and the CI&T Brazil obtained the shareholding control of the Dextra Group. Dextra Group is primarily involved in customized software development. Control of the Dextra Group will enable the Company to increase the available talent pool. The acquisition is also expected to increase the Company’s customer relationship in Brazil. The total consideration of acquisition in the purchase agreement was R$800,000. The Company paid R$ 650,000 on August 10, 2021 and R$ 50,938 on December 02, 2021. The amount of R$30,000 related to a portion of the remaining balance payable was retained for any materialized contingencies, which will be paid on the fifth anniversary of the closing date . For the year ended on December 31, 2021, Dextra Holding contributed R$172,959 in revenue to the Group’s results and a profit of R$ 31,943 for the period. If the acquisition had occurred on January 1, 2021, Management estimates that consolidated revenue would have totaled R$ 1,617,339, and consolidated profit for the year ended on December 31, 2021 would have totaled R$ 129,044. In determining these amounts, Management has assumed that the fair value adjustments, on the acquisition date, would have been the same if the acquisition had occurred on January 1, 2021. a) Consideration transferred The following table summarizes the fair value of each major class of consideration transferred on the acquisition date. Cash 700,938 Accounts payable for business combination (note 18) 82,635 Accounts payable 45,726 Retained amount 30,000 Other 6,909 Total consideration transferred 783,573 b) Acquisition-related cost The Company incurred acquisition-related costs of R $2,109 on legal fees and due diligence costs. These costs have been recognized in “administrative expenses”. c) Identifiable assets acquired and liabilities assumed The following table summarizes the recognized amounts of assets acquired and liabilities assumed on the acquisition date: Assets Fair Current Cash and cash equivalents 8,216 Trade receivables (a) 56,313 Recoverable taxes 1,668 Other assets 2,386 Current assets 68,583 Non-current Recoverable taxes 3,932 Property, plant and equipment (note 13) 9,149 Intangible assets (i) 148,523 Right-of-use assets (note 15) 5,414 Non-current assets 167,018 Total assets 235,601 Liabilities Fair value Current Suppliers 5,627 Lease liabilities (note 15) 3,105 Salaries and welfare charges 23,436 Tax liabilities 10,569 Contract liabilities 1,933 Other liabilities 26 Current liabilities 44,696 Non-current Other liabilities 18 Lease liabilities (note 15) 3,035 Non-current liabilities 3,053 Total liabilities 47,749 Total identifiable net assets acquired 187,852 (a) Gross contractual amount receivable is R$ 56,854 and R$ 541 is not expected to be collected. (i) According to the purchase price on August 10, 2021: Fair value Network software (note 14) 191 Internally developed software (note 14) 22,613 Customer relationship (note 14) 88,961 Non-compete agreement (note 14) 16,257 Brands (note 14) 20,501 Total intangible assets at fair value (note 14 148,523 Measurement of fair values The following fair values have been determined on the assumptions: • The fair value estimate for brands was calculated based on the “Relief from Royalty or Savings of Royalties” method, which estimates the asset's value based on hypothetical royalty payments that would be saved by the asset holder compared to what would be paid for licensing the asset owned by third parties, considering its useful life. The useful life for brands is 1.4 year. • The fair value estimate for non-compete agreement was calculated based on the “With and Without” method. Its useful life is 5 years. • The fair value estimate for customer relationship was calculated based on the multi-period excess earnings. Its useful life is 7.4 years. d) Goodwill Goodwill arising from the acquisition has been recognized as follows : Note Goodwill Consideration transferred 9.a 783,573 Fair value of identifiable net assets 9.c (187,852 ) Goodwill (note 14 595,721 Goodwill is attributable mainly to the skills and technical talent of Dextra’s work force and the synergies expected to be achieved from integrating the Company. The recognized goodwill is expected to be deductible for tax purposes during the merger, which was occurred on December 31, 2021 . |
Cash and cash equivalents and f
Cash and cash equivalents and financial investments | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents and financial investments | |
Cash and cash equivalents and financial investments | 10 Cash and cash equivalents and financial investments 10.1 Cash and cash equivalents . December 31, 2021 December 31, 2020 Cash and cash equivalents 69,720 59,640 Short-term financial investments 66,007 103,187 Total 135,727 162,827 Short-term financial investments are represented by fixed income securities, with interest rate ranging from 100 % to 103% on December 3 1 , 2021 (97% to 101% as of December 31, 2020) of the changes of Interbank Deposit Certificate (CDI) variation which (i) Management expects to use for short-term commitments; (ii) present daily liquidity; and (iii) are readily convertible into a known amount of cash, subject to an insignificant risk of change in value. 10.2 Financial investments . December 31, 2021 December 31, 2020 Financial investments 798,786 - At December 31, 2021, the balance of R$ 798,786 (US$ 143,139) is fully allocated in a USD interest-bearing account, bearing interest of 0,05% p.a., and such account presents immediate liquidity and is readily convertible into a known amount of cash, subject to an insignificant risk of changes in value in USD . The Company holds USD amount for short-term commitments in USD, therefore, such amount may be subject to a significant exchange rate once translated to Brazilian Reais. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivables | |
Trade receivables | 11 Trade receivables The balances of trade receivables are presented, as follows: December 31, 2021 December 31, 2020 Trade receivables - Brazil market 100,581 32,275 Trade receivables - Other markets 240,997 164,673 (-) Expected credit losses (1,059 ) (692 ) Trade receivables, net 340,519 196,256 The balances of trade receivables by maturity date are as follows: December 31, 2021 December 31, 2020 Not due 319,450 167,939 Overdue: from 1 to 60 days (1) 20,020 28,012 61 to 360 days 1,564 939 Over 360 days 544 58 Total 341,578 196,948 (i) As of December 3 1 , 2021 s overdue from 1 to 60 R$ 20,020 (R$ 28,012 as of December 31, 2020), refers to a series of individual clients. The Group considers these extensions and delays as expected in its credit risk analysis. The movement of impairment loss on trade receivables is as follows: Balance as of January 1, 2019 (352 ) Provision (430 ) Reversal 378 Partial investment spin-off 160 Exchange variation (2 ) Balance as of December 31, 2019 (246 ) Provision (1,751 ) Reversal 1,337 Exchange variation (32 ) Balance as of December 31, 2020 (692 ) Provision (3,106 ) Reversal 2,826 Exchange variation (87 ) Balance as of December 31, 2021 (1,059 ) |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2021 | |
Other assets. | |
Other assets | 12 Other assets December 31, 2021 December 31, 2020 Prepaid expenses (a) 29,743 13,221 Rental security deposits 2,471 1,402 Suppliers’ advances 162 673 Other 592 72 Total 32,968 15,368 Current 29,994 12,874 Non-current 2,974 2,494 Total 32,968 15,368 (a) Prepaid expenses are mostly comprised of prepaid insurance, mainly related to directors and officers liability insurance, consulting, software support prepayments. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment. | |
Property, plant and equipment | 13 Property, plant and equipment . December 31, 2021 December 31, 2020 IT equipment 35,230 15,407 Furniture and fixtures 6,283 6,364 Vehicles - 27 Hardware devices - 291 Leasehold improvements (a) 16,051 16,460 Property, plant and equipment in progress 157 222 Total 57,721 38,771 ( a ) Improvements are depreciated on a straight-line basis based over the duration of the lease agreement. The changes in the balances are as follows: . IT equipment Furniture and fixtures Vehicles Leasehold improvements In progress Hardware devices Total Cost: Balance as of January 1, 2020 24,013 11,903 295 22,345 14 - 58,570 Exchange rate changes 1,285 760 69 1,155 - - 3,269 Additions 11,315 1,365 - 461 5,998 487 19,626 Disposals (1,761 ) (1,091 ) (278 ) (1,352 ) (103 ) - (4,585 ) Transfers - 4 - 5,683 (5,687 ) - - Balance as of December 31, 2020 34,852 12,941 86 28,292 222 487 76,880 Exchange rate changes 386 176 - 375 37 - 974 Spin-off (128 ) (4 ) - - (313 ) (625 ) (1,070 ) Addition due to business combination (note 9) 7,379 1,018 - 752 - - 9,149 Additions 22,527 301 - 1,052 1,724 138 25,742 Disposals (1,376 ) (563 ) (86 ) (909 ) (160 ) - (3,094 ) Transfers - - - 1,353 (1,353 ) - - Balance as of December 31, 2021 63,640 13,869 - 30,915 157 - 108,581 Depreciation: Balance as of January 1, 2019 (15,151 ) (5,340 ) (159 ) (7,194 ) - - (27,844 ) Effect of movements in exchange rates (48 ) (22 ) (5 ) (21 ) - - (96 ) Investment spin-off 575 80 - 361 - - 1,016 Depreciation (3,850 ) (1,486 ) (78 ) (2,928 ) - - (8,342 ) Disposals 3,382 1,088 133 21 - - 4,624 Balance as of December 31, 2019 (15,092 ) (5,680 ) (109 ) (9,761 ) - - (30,642 ) Exchange rate changes (565 ) (207 ) (28 ) (154 ) - - (954 ) Additions (5,386 ) (1,616 ) (50 ) (3,245 ) - (196 ) (10,493 ) Disposals 1,598 926 128 1,328 - - 3,980 Balance as of December 31, 2020 ( 19,445 ) (6,577 ) (59 ) (11,832 ) - (196 ) (38,109 ) Exchange rate changes (214 ) (42 ) - 57 - - (199 ) Spin-off 10 2 - - - 280 292 Additions (9,625 ) (1,451 ) (5 ) (3,908 ) - (84 ) (15,073 ) Disposals 864 482 64 819 - - 2,229 Balance as of December 31, 2021 ( 28,410 ) (7,586 ) - (14,864 ) - - (50,860 ) Balance as of: December 31, 2020 15,407 6,364 27 16,460 222 291 38,771 December 31, 2021 35,230 6,283 - 16,051 157 - 57,721 The Group does not have property, plant or equipment pledged as collateral. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Intangible assets | 14 Intangible assets . December 31, 2021 December 31, 2020 Network software 2,399 1,096 Internally developed software (i) 3,911 2,385 Software in progress 391 115 Customer relationship (ii) 84,195 - Non-compete agreement (ii) 13,897 - Brands (ii) 14,541 - Subtotal 119,334 3,596 Goodwill (iii) 619,469 14,570 Total 738,803 18,166 (i) Refer s to internal expenses with software development to be sold by the Group and also for internal use . (ii) Refers to customer relationship, non-compete agreement and brads arising from acquisition of Dextra Technologies S.A., on August 10, 2021 (note 9.c). (i i i ) Refers to goodwill arising from: a) acquisition of Dextra Technologies S.A., on August 10, 2021, in the amount of R$595,721 (note 9.d); b) acquisition of Comrade Inc. in 2017, in the amount of R$19,644 (R$10,969 as of December 31, 2020), which was merged in 2018, into the subsidiary CI&T Inc; c) acquisition of CI&T IN Software Ltda., which was merged into the Company in 2014 in the amount of R$2,871; and d) acquisition of CI&T Japan Inc. in 2015 in the amount of R$1,233 (R$730 as of December 31, 2020). The change in the balances of intangible assets as follows: Network software Internally developed software Software in progress Customer relationship Non-compete agreement Brands Goodwill Total Cost: Balance as of January 1, 2020 9,229 11,444 445 - - - 14,570 35,688 Exchange rate changes 331 - - - - - - 331 Additions 188 646 931 - - - - 1,765 Disposals (16 ) - - - - - - (16 ) Transfers - 1,261 (1,261 ) - - - - - Balance as of December 31, 2020 9,732 13,351 115 - - - 14,570 37,768 Additions due to business combination (note 9) 191 22,613 - 88,961 16,257 20,501 595,721 744,244 Exchange rate changes 38 - - - - - 9,178 9,216 Additions 1,999 1,428 738 - - - - 4,165 Impairment loss (a) - (20,723 ) - - (2,795 ) - - (23,518 ) Write-off (18 ) - (550 ) - - - - (568 ) Transfers - (88 ) 88 - - - - - Balance as of December 31, 2021 11,942 16,581 391 88,961 13,462 20,501 619,469 771,307 Amortization: Balance as of January 1, 2019 ( ) ( ) - - - - - ( ) Effect of movements in exchange rates (165 ) - - - - - - (165 ) Investment spin-off 37 - - - - - - 37 Amortization (874 ) (1,903 ) - - - - - (2,777 ) Disposals 131 - - - - - - 131 Balance as of December 31, 2019 (7,657 ) (9,486 ) - - - - - (17,143 ) Exchange rate changes (298 ) - - - - - - (298 ) Additions (697 ) (1,480 ) - - - - - (2,177 ) Disposals 16 - - - - - - 16 Balance as of December 31, 2020 (8,636 ) (10,966 ) - - - - - (19,602 ) Exchange rate changes (32 ) - - - - - - (32 ) Additions (893 ) (1,708 ) - (4,766 ) (1,189 ) (5,960 ) - (14,516 ) Impairment loss (a) - - - - 1,624 - - 1,624 Write-off 18 4 - - - - 22 Balance as of December 31, 2021 (9,543 ) (12,670 ) - (4,766 ) 435 (5,960 ) - (32,504 ) Balance at: December 31, 2020 1,096 2,385 115 - - - 14,570 18,166 December 31, 2021 2,399 3,911 391 84,195 13,897 14,541 619,469 738,803 (a) After the consummation of the Dextra Group acquisition, the Company decided to discontinue the investment in the intangible assets, acquired in the business combination and initially recognized as internally developed software, in the amount of R$20,723, due to growth strategies in the digital transformation market, with the purpose more directed to the development of customized and on demand software for customers. The residual amount with respect to a non-compete agreement, in the amount of R$1,171, was also recognized as impairment. The total amount of impairment loss of intangible assets was recognized in the caption “Other income (expenses), net” (note 24.1), in the amount of R$21,895, as of December 31, 2021. Impairment test – Goodwill The recoverable amount of the CGU was based on the value in use, determined through the discounted future cash flows to be generated by the continuous use of the CGU. The discounted cash flow methodology was used to determine the value in use of the CGU, calculated based on the capitalization of free cash flows discounted at a weighted-average cost of capital (WACC) that corresponds to the discount rate, considering the weighted average cost of the different financing forms present in the company’s capital structure. The values attributed to the main assumptions, as detailed below, represent the assessment of future management trends in relevant sectors and were based on historical data from internal and external sources. . December 31, 2021 December 31, 2020 Discount rate - before tax 19.06 % 12.54 % Discount rate - after tax 12.94 % 12.38 % Budgeted EBITDA growth rate (average for the next five years) 22 % 20 % Terminal value growth rate 3.5 % 3.5 % The financial projections of the business unit in Brazil were prepared in Brazilian reais, in nominal values for the next five years. The discount rate was estimated after tax based on the historical weighted average cost of capital rate at which the CGU operates. Cash flow projections were prepared for five years and a growth rate in perpetuity after this period was considered. The rate of growth in perpetuity was determined as the lower value between the inflation of the countries where the Company operates and the estimated annual compound rate of long-term growth of EBITDA, which Management believes to be consistent with the market. The key estimates used were as follows: • Revenue growths are projected considering the average growth levels experienced over the past years and the growth for the next five years between 28% and 43%, considered effective tax rates on the base date of assessment. • The scenario with the extinction of the Brazilian payroll tax exemption benefits directly impacted personnel costs, reducing gross margin. • The variation in EBITDA follows revenues, costs, and expenses. The EBITDA margin of Net revenue was maintained at 22% over the projected period. Management’s impairment test for 2021 and 2020 indicated that value in use is substantially higher than the carrying amount of the goodwill. Management therefore believes that no reasonably possible change in any of the above key assumptions would cause the carrying amount of goodwill to materially exceed its recoverable amount. The Company did not recognize any impairment loss for the years ended December 31, 2021, 2020 and 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 15 Leases Right-of-use assets . December 31, 2021 December 31, 2020 Properties 69,441 66,459 Vehicles 4,173 2,809 IT equipment 213 497 Total 73,827 69,765 Some of the Group’s leases have the option of an extension that can be exercised for an indefinite period, and in these cases the Group has already considered in the measurement of the lease amounts the extensions that are reasonably certain to be exercised. The Group applies the short-term lease recognition exemption to its short-term leases of properties (those leases that have a lea se term of 12 months or less). It also applies the lease of low-value assets recognition exemption to leases tha t are considered of low value. Lease payments on short-term leases and leases of low-value assets are recog nized as expenses on a straight- line basis. The remained rental expense s for the year totaled R$ 5,922 as of December 3 1 , 2021 ( R$ 4,669 as of December 3 1 , 2020 ) . The changes to balances of the right-of-use are : Properties Vehicles IT equipment Total Cost: Balance as of January 1, 2020 84,324 3,213 851 88,388 Foreign currency difference 8,370 10 - 8,380 Additions 14,305 2,503 - 16,808 Derecognition of right-of-use assets (18,450 ) (718 ) - (19,168 ) Balance on December 31, 2020 88,549 5,008 851 94,408 Additions due to business combination (note 9.c) 5,414 - - 5,414 Foreign currency difference 2,744 3 - 2,747 Additions 11,815 3,724 - 15,539 Derecognition of right-of-use assets (2,200 ) (2,363 ) - (4,563 ) Remeasurement of right-of-use assets 1,318 - - 1,318 Balance on December 31, 2021 107,640 6,372 851 114,863 Depreciation: Balance at January 1, 2019 - - - - Foreign currency difference (32 ) - - (32 ) Depreciation (13,402 ) (985 ) (71 ) (14,458 ) Balance on December 31, 2019 (13,434 ) (985 ) (71 ) ( 14,490 ) Foreign currency difference (979 ) (9 ) - (988 ) Depreciation (15,320 ) (1,609 ) (283 ) (17,212 ) Derecognition of right-of-use assets 7,643 404 - 8,047 Balance on December 31, 2020 (22,090 ) (2,199 ) (354 ) (24,643 ) Foreign currency difference (856 ) (1 ) - (857 ) Depreciation (16,535 ) (1,944 ) (284 ) (18,763 ) Derecognition of right-of-use assets 1,657 1,945 - 3,602 Remeasurement of right-of-use assets (376 ) - - (376 ) Balance on December 31, 2021 (38,200 ) (2,199 ) (638 ) (41,037 ) Net balance at: December 31, 2020 66,459 2,809 497 69,765 December 31, 2021 69,441 4,173 213 73,827 Lease liabilities . Average discount rate (per year) December 31, 2021 December 31, 2020 Properties 10.88% (2020 : 77,366 71,765 Vehicles 14.54% (2020: 12.69%) 4,285 2,940 IT equipment 7.70% (2020 : 237 523 Total 81,888 75,228 Current 21,214 14,569 Non-current 60,674 60,659 Total 81,888 75,228 The change in lease liabilities is disclosed in the reconciliation of change in liabilities to cash flows in n ote 1 6 . |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Loans and borrowings | |
Loans and borrowings | 16 Loans and borrowings Loans and borrowings operations can be summarized as follows: Currency Average interest rate per year (%) Year of maturity December 31, 2021 December 31, 2020 Itaú (i) USD 4.82% p.a. 2022 2,349 5,936 Santander Bank S/A (iv) BRL 12.87% p.a. 2021 - 33 Bradesco (i) BRL CDI + 3.57% / CDI 2021 / 2023 11,684 52,081 Banco do Brasil (ii) USD 3.05% 2021 - 20,748 HSBC - CI&T Inc. (iii) USD Prime rate + 1% 2021 - 10,432 Citibank - CI&T Inc. (iii) USD Libor 3 months rate + 1.90% 2022 11,164 - Banco do Brasil (ii) USD 2.37% p.a. 2022 56,551 - Citibank (ii) USD 2.28% p.a. / 2.30% p.a. 2022 28,328 - Santander Bank S/A (v) BRL CDI + 1.60% p.a. 2026 204,047 - Bradesco (i) BRL CDI 2026 306,417 - Citibank (ii) USD Libor 3 months rate + 2.07% 2026 168,169 - Total 788,709 89,230 (i) Export credit note - NCE: Refers to financing to export software development services. (ii) Advance on (iii) Refers to Revolving Credit Facility. (vi) Refers to Leasing contracts. (v) Refers to Law 4131 - Foreign currency loans granted by the banks abroad to a Brazilian company. These balances were included as current and non-current borrowings in the consolidated statement of financial position as follows: December 31, 2021 December 31, 2020 Current 164,403 75,377 Non-current 624,306 13,853 Total 788,709 89,230 The principal balances of long-term loans and borrowings as of December 3 1 , 2021 , mature as follows : Maturity 2023 112,031 2024 143,197 2025 196,925 2026 172,153 Non-current liabilities 624,306 The reconciliation of change in liabilities to cash flows arising from financing activities is shown below : Liabilities Leases Share premium Total Loans and borrowings Leases (note 15.b) and Reserves Balance as of January 1, 2021 89,230 75,228 116,072 280,530 Changes in cash flow from financing activities Proceeds from loans and borrowings 740,596 - - 740,596 Loans, borrowings and lease liabilities payments (75,196 ) (17,656 ) - (92,852 ) Issuance of common shares at initial public offering - - 915,947 915,947 Transaction cost of offering - - (66,876 ) (66,876 ) Share-based plan contributions - - 1,282 1,282 Interest on equity paid - - (6,288 ) (6,288 ) Dividends paid (note 22) - - (126,045 ) (126,045 ) Total changes in cash flow from financing activities 665,400 (17,656 ) 718,020 1,365,764 Exchange rate changes 601 2,054 - 2,655 Other changes - liabilities Additions due to business combination (note 9.c) - 6,139 - 6,139 New leases - 15,504 - 15,504 Remeasurement - 1,351 1,351 Interest expenses 23,366 6,369 - 29,735 Interest paid (12,149 ) (5,753 ) - (17,902 ) Other borrowing/lease costs 22,261 (213 ) - 22,048 Lease write-offs - (1,135 ) - (1,135 ) Total other changes - liabilities 33,478 22,262 - 55,740 Total other changes - equity - - 217,950 217,950 Balance as of December 31, 2021 788,709 81,888 1,052,042 1,922,639 Liabilities Leases Net Equity Total Loans and financing Leases (Note 15.b) Reserves Balance as of January 1, 2020 27,849 77,393 36,937 142,179 Financing cash flow variations Proceeds from loans and borrowings 144,269 - - 144,269 Loan and borrowings payments, and lease payments (88,107 ) (15,500 ) - (103,607 ) Interest on own capital - - (4,276 ) (4,276 ) Dividends paid - - (30,977 ) (30,977 ) Total changes in financing cash flows 56,162 (15,500 ) (35,253 ) 5,409 Effect of changes in exchange rates 1,310 7,657 - 8,967 Other changes - related to liabilities New leases - 16,715 - 16,715 Interest expense 5,281 5,023 - 10,304 Interest paid (3,880 ) (5,023 ) - (8,903 ) Other costs 2,508 - - 2,508 Lease write-offs - (11,037 ) - (11,037 ) Total other changes related to liabilities 3,909 5,678 - 9,587 Total other changes related to equity - - 114,388 114,388 Balance as of December 31, 2020 89,230 75,228 116,072 280,530 Liabilities Leases Net Equity Total Loans and financing Leases (Note 15 Reserves Balance as of January 1, 2019 42,288 81,893 85,330 209,511 Financing cash flow variations Loans and borrowings 8,179 - - 8,179 Loan and borrowings payments, and lease payments (24,161 ) (10,949 ) - (35,110 ) Interest on own capital - - (2,676 ) (2,676 ) Dividends paid - - (40,059 ) (40,059 ) Total changes in financing cash flows (15,982 ) (10,949 ) (42,735 ) (69,666 ) Effect of changes in exchange rates 484 (53 ) - 431 Other changes - related to liabilities Capital increase (Note 18.a) - - (43,500 ) (43,500 ) Partial spin-off (Note 1.a) - - 213 213 New leases - 6,496 - 6,496 Interest expense 1,928 6,135 - 8,063 Interest paid (1,912 ) (6,129 ) - (8,041 ) Other borrowing costs 1,043 - - 1,043 Total other changes related to liabilities 1,059 6,502 (43,287 ) (35,726 ) Total other changes related to equity - - 37,629 37,629 Balance as of December 31, 2019 27,849 77,393 36,937 142,179 Loans and borrowings covenants The loans and borrowings described above are subject to covenants, which establish the early maturity of debts. Early maturity of the loans could be caused by: — Disposal, merger, incorporation, spin-off, or any other corporate reorganization process that implies a change in the shareholding control, except for the prior consent from the creditor, and if it does not affect the liquidity capacity of this instrument. During 2021, due to corporate reorganization as mentioned in the note 1.a, the Company obtained the necessary waivers from financial creditors. — Failure to send the annual financial statements within 180 days of the fiscal year-end . — Public notice of default before a relevant not ary , unless it has been proved to the creditor that the public note was issued due to a third-party mistake or bad faith, the public note of default was canceled, or the payment of the relevant debt was deposited in court within 30 days from such public notice default The Group has complied with these covenants as of December 31, 2021 and December 31,2020. |
Salaries and welfare charges
Salaries and welfare charges | 12 Months Ended |
Dec. 31, 2021 | |
Salaries and welfare charges | |
Salaries and welfare charges | 17 Salaries and welfare charges December 31, 2021 December 31, 2020 December 31, 2019 Salaries 31,342 15,258 10,311 Accrued vacation and charges 83,750 50,064 33,983 Bonus 72,810 52,312 26,015 Withholding income tax 20,604 10,604 7,519 Payroll charges (social contributions) 18,124 5,929 4,051 Others 7,543 7,627 6,029 Total 234,173 141,794 87,908 The table below shows the movement of the bonus accrual: 2021 Balance as of January 1, 2021 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2021 Bonus 52,312 65,603 (50,402 ) 5,297 72,810 2020 Balance as of January 1, 2020 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2020 Bonus 26,015 51,916 (28,667 ) 3,048 52,312 2019 Balance as of January 1, 2019 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2019 Bonus 20,466 26,033 (21,024 ) 540 26,015 |
Accounts payable for business c
Accounts payable for business combination | 12 Months Ended |
Dec. 31, 2021 | |
Accounts payable for business combination | |
Accounts payable for business combination | 18 Accounts payable for business combination December 31, 2021 Remaining acquisition cost 48,817 Retained amount 30,000 Other 6,909 Total 85,726 Current 48,923 Non-current 36,803 Total 85,726 The table below shows the movement of the accounts payable for business combination : 2021 Balance as of August 10, 2021 (Note 2 Monetary adjustment Payment Balance as of December 31, 2021 Accounts payable for business combination (note 9) 133,573 3,091 (50,938 ) 85,726 The subsidiary to CI&T Brazil paid R$ 50,938 on December 2, 2021 upon anticipation of part of the remaining balance due to the Company completing its Initial Public Offering in 2021. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
Provisions | |
Provisions | 19 Provisions The Group is involved in tax and labor lawsuits that were considered probable losses and are provisioned according to the table below: Balance as of January 1, 2020 Provisions Reversal Balance as of December 31, 2020 Provisions Balance as of December 31, 2021 Tax 10 1 - 11 120 131 Labor 163 12 (25 ) 150 352 502 Total Provisions 173 13 (25 ) 161 472 633 The main labor lawsuits referred to above refer to the compliance with minimum quota of employees with disabilities and lack of control over working hours . As of December 3 1 , 2021 Group ’s judicial deposits totaled R$ 3,079 (R$ 3,083 as of December 31, 2020) , recognized in the statement of financial position, in non-cur rent assets. Of this amount, R$ 2,933 (R$ 2,932 as of December 31, 2020) refer to tax lawsuits , R$142 (R$151 as of December 31, 2020) refer to labor lawsuits and R$4 refers to civil lawsuits . Additionally, the Group is a party to civil, labor and tax lawsuits, whose likelihood of loss is regarded as possible, for which no provision was recorded, in the amount of R$4,292 as of December 31, 2021 (R$215 as of December 31, 2020) of which R$ 4,093 related to lawsuits assumed in the business combination with Dextra Group. The significant lawsuits assessed as possible loss refer to: (i) The labor infraction notices that addresses the hiring of employees with disabilities. The Group filed an administrative defense, but the notice was maintained. In February 2019, the Group appealed at administrative level (ii) Tax lawsuits related to non-contribution tax credits referring to payroll in the period from January 1 to December 31, 2011. (iii) Civil lawsuit regarding an employee claiming alleged breach of employment contract by Dextra, therefore, requiring receipt of double amounts (undue refund). |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2021 | |
Employee benefits | |
Employee benefits | 20 Employee benefits The Group provides its employees with benefits that include medical care, dental care and life insurance during their employment. These benefits are paid by the Group and according to the category of health plans elected, with a consideration paid by the employee. Additionally, the Group offers its employees the option to adhere to a private pension plan to which voluntary contributions are made. For CI&T Brazil, the contributions are made exclusively by the participants; for CI&T US, CI&T UK and CI&T Canada the companies contribute with the same amount as the participants up to % of the employee salary. In both scenarios there is consideration to be paid by the subsidiaries, as there are post-employment obligations. The nature of the plan allows employees to suspend or discontinue their contributions at any time and allows the Management to transfer the portfolio to another administrator. The Group does not have additional post-employment obligations and none other long-term benefits, such as time-of-service leave, lifetime health plan and other time-service benefits. |
Stock option plan
Stock option plan | 12 Months Ended |
Dec. 31, 2021 | |
Stock option plan | |
Stock option plan | 21 Stock option plan a. Plan in force On March 30, 2020, the Board of Directors approved the 1 st and 2 nd stock option program s and , on February 26, 2021, approved the 3 rd and 4 th stock option program s , through which selected executives were granted options that confer the right to exercise the stock purchase, subject to certain conditions under the “Stock Option Plan”, with the option to settle in equity and cash. On October 29, 2021, in connection with a restructuring pursuant to which the Company became the holding company of the CI&T Group for the purpose of an initial public offering (see note 1.a), the Board of Directors approved the migration of the plan from the subsidiary CI&T Brazil to the Company. The Company recognized to the rights of each participant accrued under the corresponding plan and related programs and shall assume all obligations of CI&T Software under such plan. The options already granted become options granted under the CI&T Cayman Plan, provided that each option shall confer the right to acquire one class A common share issued by Company. Considering that the number of shares forming Company’s capital stock is approximately 68.14 times the number of shares forming the subsidiary CI&T Brazil, the number of granted options and the exercise price were adjusted in the same proportion. According to the above restructuring, the Company remeasured the fair value of the stock options granted, both of the Company and of the subsidiary CI&T Brazil on the date of the plan migration. The remeasurement to fair value of the stock options granted was immaterial. Stock option program (equity settled) The following are the general conditions of the Group’s stock option plan: Characteristics of the plans: Equity-settled 1 st 2 nd Program 3 rd Program 4 th Program Grant date 01/04/2020 01/04/2021 01/04/2021 Exercise Period: 6.8 years (i ) 5.8 years 5.8 years (i ) Exercise - ( i ) - - (i ) Limit date 01/01/2027 ( i ) 01/01/2027 01/01/2027 (i ) Activity of stock option number (+) Total number of granted options 3,940,478 666,616 187,820 (-) Canceled options 78,360 19,900 (=) Number of options not exercised 3,862,118 (ii ) 666,616 167,920 (ii ) (=) Number of outstanding options on 12/31/2021 3,862,118 666,616 167,920 (=) Number of exercisable options on 12/31/2021 1,244,994 - - Inputs used in the measurement Exercise price (in reais) 9.58 (i i 19.84 19.84 (i i Share price on the grant date (in reais) 21.68 (v) 21.68 21.68 (v) Volatility (% p.a.) 24.19% (i v 27.73% 27.73% ( i v Interest rate (% p.a.) 1.53% 2.66% 2.66% Option value (in reais) 0.48 (i ii 1.81 1.85 (i ii Remaining average term (expected lifetime) 3.7 years (vi) 4.3 years 4.3 years Effects on income for the year: Total expense attributed to the granting of options (R$) 1,846 1,275 298 Expenses incurred until December 31, 2020 (R$) 142 - - Expenses incurred until December 31, 2021 (R$) 668 251 48 Expenses to incur 1,036 1,024 250 (i) Conditional upon the grace period and assuming the possibility of anticipated vesting in face of a liquidity event . (ii) Price established was based on valuation at the time the options are granted. (ii) Fair value based on the Black-Scholes method . (iv) The expected volatility was estimated based on the historical volatility of the comparable Companies share price. (v) The share price was determined based on valuation prepared by the Group on the date of plan migration (vi) Average calculated considering that, according to the definition of the plan, The Board of Directors is entitled to select the participants of the program, at its sole discretion, among the Management, e xecutives, e mployees and s ervice p roviders of the Company and its s ubsidiaries. Additionally, the Board of Directors defines the terms of each program, when the o ption granted to the p articipants will become eligible for exercise (“vesting period”), including the possibility of anticipating the vesting period. The fair value of the stock options granted is estimated on the grant date, based on the Black-Scholes model, which considers the terms and conditions for granting the shares. On October 29, 2021, as a result of the corporate reorganization, the exer cise price of the options changed from R$ 653.21 to R$9.58 for the 1 st and 2 nd program s and changed from R$ 1,352.00 to R$19.84 for the 3 rd and 4 th program s , to be updated according to the official national price index (IPCA / IBGE). The participants must pay the exercise price in cash and the program does not provide for alternatives for paying cash back to participants. In the year ended on December 3 1 , 2021, the Group recognized in the statement of profit or loss an amount of R$ 967 ( R$ 142 as of December 3 1 , 2020), see details in item “e”. b. Stock option program (settled in cash) Due to the corporate reorganization as described in item “a”, the stock option program settled in cash was also migrated from the subsidiary CI&T Brazil to the Company. The number of granted options was proportionally adjusted by the equivalent of the Company's shares. The amount to be settled in cash is based on the increase of the Group’s share price between the grant date and the exercise date. Payable in cash Granting date 04/2020 10/2021 Exercise Period: 6.8 years (i) 5.2 years (i) Exercise Date - (i) - (i) Limit date for exercising the options 01/01/2027 (i) 01/01/2027 (i) Total number of options granted 69,774 12,130 Liabilities carrying amount as of December 31, 2021 1,307 52 (i) Conditional upon the grace period and assuming the possibility of anticipated vesting in face of a liquidity event . c. Canceled plans On August 31, 2013, the Group approved the stock option plan, through which the executive officers elected by the Board of Directors were granted the possibility of acquisition of the Company’s shares, subject to certain conditions (“Stock Option Plan”). The Extraordinary Shareholders’ Meeting (“EGM”), held on November 13, 2019, approved the cancellation of all programs and contracts of the Group’s Stock Option Plan, approved at the Company’s Extraordinary Shareholders’ Meeting of May 31, 2013, so that all options to purchase the shares issued by the Group granted to beneficiaries, exercisable or not, were canceled, with no effect for all legal purposes. On November 13, 2019, the Group unilaterally canceled the share-based payment plan, according to the EGM held on that date. On December 19, 2019, at the Board of Directors ’ meeting , the Group and the beneficiaries of the extinguished plan approved the Transaction and Settlement Agreement and Other Covenants , which includes the indemnities to be paid in the amount of R$ 44,000, granting full discharge to the Group of any right related to the Plan. In 2020, the agreements were ratified and paid, in the total amount of R$43,354 . The remaining amount, of R$628, was approved and paid in July 2021. d. Shares granted to executive officers In August, 2017 the Company granted to the former controlling shareholders of the subsidiary Comrade, Inc. (later merged into CI&T, Inc.) the right to receive 16,530 shares. Comrade’s shareholders became executives of the Group , and the granting of the shares is conditioned to continuing employment in the Group for a period of four years from the acquisition date of Comrade. The fair value of the shares was estimated on the acquisition date of the subsidiary, using the “Black-Scholes” pri cing model, in the amount of R$ 5,120. As of De cember 3 1 , 2021, the impact on profit or loss totaled R$246 ( R$ 751 as of December 3 1 , 2020), see details below in item “e” – expenses recognized in profit or loss . On October 8, 2021, the executive officers exercised the options through the issuance of 16,530 new common shares, with no par value, at the total issuance price of R$28,697, subscribed by McMillian Family Trust. The subscribed shares were paid through the transfer of 15,896 shares issued by the subsidiary CI&T Inc to the subsidiary CI&T Brazil. e. Expenses recognized in profit or loss December 31, 2021 December 31, 2020 December 31, 2019 Plan in force: Equity settled 967 142 - Cash settled 1,318 41 - Canceled plan - - 1,677 Shares granted to executives’ officers 246 751 1,522 Expenses recognized in profit or loss (note 24) 2,531 934 3,199 Other effects in shareholders’ equity 1,282 1,751 - Total 3,813 2,685 3,199 (-) Effect of cash settled (1,318 ) (41 ) - Effect of movements in exchange rates 3 8 (29 ) Total shareholders’ equity 2,498 2,652 3,170 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Equity | 22 Equity a. Share capital December 31, 2021 December 31, 2020 Number of ordinary nominative shares 132,197,896 121,086,781 Par value (i) 0.00027 0.56958 Share capital 36 68,968 (i) In November 2021 the Group’s shareholders approved a capital stock share split with a 1 68.14 As at December 31, 2021, after all the corporate restructuring for purposes of the registration of the Company’s common shares in connection with the IPO (see note 1.a), the Company’s share capital is R$ 36 represented by 132,197,896 common shares. Those common shares are represented by 15,000,000 Class A common shares and 117,197,896 Class B common shares. As at December 31, 2020 the CI&T Brazil’s share capital consists of 121,086,781 common shares, in the total amount of R$ 68,968. The holders of the Class A common shares and Class B common shares have identical rights, except that (i) the holders of Class B common shares are entitled to ten votes per share, whereas holders of Class A common shares are entitled to one vote per share, (ii) Class B common shares have certain conversion rights and (iii) the holders of Class B common shares are entitled to maintain a proportional ownership interest in the event that additional Class A common shares are issued, however that such rights to purchase additional Class B common shares may only be exercised with Class B Shareholder Consent. At the Annual and Extraordinary General Meeting held on May 31, 2019 and Extraordinary General Meeting held on July 31, 2019, the shareholders approved the capitalization of the share redemption reserve in the amount of R$ 43,500. The “Extraordinary Shareholders’ Meeting” of July 31, 2019, also approved the partial spin-off of the subsidiary Sensedia SA, in the amount of R$ 4,630, according to note 1.a, which resulted in a decrease in share capital from R$ 73,598 to R$ 68,968, through the cancellation of 59,546 ordinary shares. c. Capital reserve Corporate Restructuring Share-based compensation The Group a share-based compensation plans that are accounted as Capital reserve per a total amount of R$ 2,498 (see note 21). Share issuance costs d. Earnings reserves December 31, 2021 December 31, 2020 December 31, 2019 Retained earnings reserve 125,957 95,515 23,979 The application of earnings reserves will be decided at the Annual and Extraordinary Shareholders’ Meeting. e. Dividends and interest on shareholders’ equity • the payment for interest on equity up to the annual limit of R$6,288; • the distribution of additional dividends on profit for the year ended 2020 in the amount of R$ . As of June 28, 2021, the Company paid the amount of R$ related to the profit for the year ended . Dividends declared and paid totaled R$ per common share of the subsidiary in . Additionally, on October 8, 2021, the Extraordinary Shareholders’ Meeting of CI&T Brazil approved the distribution of additional dividends on profit for the year ended 2020, in the amount of R$55,005, equivalent to R$ 31.24 per common share of the subsidiary In May 31, 2019 the Extraordinary General Meeting approved the additional distribution of dividends, relating to the profits for the year 2018, in the amount of R$ 11,119 and the distribution of dividends from the retained earnings, in the amount of R$ 15,448, totaling a distribution of R $ 26,567. f. Other comprehensive income Accumulated translation adjustments include all foreign currency translation differences on investments abroad. g. Stock redemption reserve |
Net revenue
Net revenue | 12 Months Ended |
Dec. 31, 2021 | |
Net revenue | |
Net revenue | 23 Net revenue The Group generates revenue primarily through the provision of services described in the table below, which is summarized by nature: December 31, 2021 December 31, 2020 Dec ember 31 20 19 Software development revenue 1,394,583 891,012 597,457 Software maintenance revenue 30,026 31,133 37,634 Revenue from software license agent 1,637 2,413 7,005 Consulting revenue 15,922 28,601 25,942 Other revenue 2,212 3,360 9,095 Total net revenue 1,444,380 956,519 677,133 The following table sets forth the net revenue by industry vertical for the periods indicated: . December 31, 2021 December 31, 2020 Dec ember 31 20 19 By Industry Vertical Financial services 487,177 324,118 231,813 Food and beverages 340,709 244,590 116,911 Pharmaceuticals and cosmetics 206,375 134,763 85,410 Technology, media, and telecom 169,311 81,961 92,113 Retail and manufacturing 93,871 83,046 65,130 Education and services 64,336 41,323 21,042 Others 82,600 46,718 64,714 Total net revenue 1,444,380 956,519 677,133 Performance obligations and revenue recognition policies The table below provides information on the nature and timing of performance obligations in contracts with customers, including the revenue recognition policies listed in the main types of services: Type of service Nature and timing of performance obligations Revenue recognition in accordance with IFRS 15 Services provision: The Group has determined that the customer controls all work in progress as the services are provided. This is because, according to these contracts, services are provided according to the client’s specifications and, if a contract is terminated by the client, the Group will be entitled to reimbursement of the costs incurred to date, including a reasonable margin. Invoices are issued in accordance with contractual terms and are usually paid on average in 70 days. Unbilled amounts are presented as contract assets. The associated revenue and costs are recognized over time. The progress of the performance obligation is measured based on the hours incurred. Software License Agency The Group acts as an agent in software license agreements between the developer and the customer. Invoices (related to agency fees) are issued in accordance with the contractual terms and are generally paid on average within 45 days. Revenue related to fees Contract assets Contract assets relate mainly to the Group’s rights to consideration for services performed, for which control has been transferred to the client, but not invoiced on the reporting date. Contract assets are transferred to receivables when the Group issues an invoice to the client . The balances from contract assets are shown and segregated in the statement of financial position as follows: . December 31, 2021 December 31, 2020 Local market 80,107 35,364 Foreign market 55,194 15,936 (-) Expected credit losses from contract assets (913 ) (675 ) Total 134,388 50,625 The movement of expected credit losses of contract assets , is as follows: Balance as of January 1, 2020 (805 ) Reversal 218 Effect of movements in exchange rates (88 ) Balance as of December 31, 2020 (675 ) (Provision) (217 ) Effect of movements in exchange rates (21 ) Balance as of December 31, 2021 (913 ) |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature | |
Expenses by nature | 24 Expenses by nature Information on the nature of expenses recognized in the consolidated statement of profit or loss is presented below : . December 31, 2021 December 31, 2020 December 31, 2019 Employee expenses (1,010,989 ) (628,699 ) (453,872 ) Third-party services and other inputs ( 65,023 ) (55,660 ) (36,179 ) Short-term leases (5,922 ) (4,669 ) (4,165 ) Travel expenses ( 4,156 ) (8,656 ) (25,891 ) Depreciation and amortization (a) (48,354 ) (29,882 ) (25,577 ) Stock options (b) (note 21 ) ( 2,531 ) (934 ) (3,199 ) Consulting (c) (9,177 ) (446 ) (858 ) Expected credit loss ( 497 ) (196 ) (1,091 ) Impairment of intangible assets (note 14) (21,895 ) - - Surplus of indemnity - 18 (14,891 ) Other costs and expenses (31,230 ) (19,151 ) (19,701 ) Total (1,199,774 ) (748,275 ) (585,434 ) Disclosed as: Costs of services provided ( 935,732 ) (600,866 ) (448,979 ) Selling expenses (89,654 ) (65,093 ) (44,802 ) General and administrative expenses ( 151,681 ) (81,161 ) (81,197 ) Research and technological innovation expenses (4 ) (3,462 ) (12,093 ) Impairment loss on trade receivables and contract assets ( 497 ) (196 ) (1,091 ) Other income (expenses) net (22,206 ) 2,503 2,728 Total (1,199,774 ) (748,275 ) (585,434 ) (a) Depreciation and amortization in the total amount of R$ 48,354 29,882 as of December 31, 2019) include R$ 31,884 24,085 16,470 5,797 as of December 31, 2019) as expenses (b) Stock options in the total amount of R$ 2,531 934 1,930 139 601 795 (c) Consulting expenses in the total amount of R$ 9,177 446 6,957 446 2,220 24.1 Other income (expenses), net . December 31, 2021 December 31, 2020 December 31, 2019 Costs attributable to secondary offer (2,220 ) - - Impairment of intangible assets (note 14) (21,895 ) - - Government grant 2,481 1,571 3 Other (572 ) 932 2,725 Total (22,206 ) 2,503 2,728 |
Net finance costs
Net finance costs | 12 Months Ended |
Dec. 31, 2021 | |
Net finance costs | |
Net finance costs | 25 Net finance costs . December 31, 2021 December 31, 2020 December 31, 2019 Finance income: Income from financial investments 4,321 2,626 2,372 Foreign-exchange gain 46,302 28,135 12,489 Gains on derivatives 18,585 16,652 8,775 Interest received 99 170 43 Other finance income 509 225 265 69,816 47,808 23,944 Finance costs: Exchange variation loss (49,237 ) (20,080 ) (11,254 ) Loss on derivatives (18,112 ) (31,575 ) (8,802 ) Interest and charges on loans and leases (note 16) (29,729 ) (10,304 ) (8,063 ) Bank guarantee expenses (17 ) (17 ) (263 ) Commissions and brokerage (2,598 ) - - Negative monetary variation (3,092 ) - - Other finance costs (1,263 ) (1,285 ) (1,473 ) (104,048 ) (63,261 ) (29,855 ) Net finance costs (34,232 ) (15,453 ) (5,911 ) |
Income tax and social contribut
Income tax and social contribution | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and social contribution | |
Income tax and social contribution | 26 Income tax and social contribution Income tax and social security contribution recognized in profit or loss for the year are shown as follows: . December 31, 2021 December 31, 2020 December 31, 2019 Current income tax and social security contribution (95,375 ) (66,912 ) (39,457 ) Deferred income tax 10,958 1,775 10,238 Income tax and social contributions (84,417 ) (65,137 ) (29,219 ) The reconciliation of the effective rate with the average nominal rate is shown as follows: . December 31, 2021 December 31, 2020 December 31, 2019 Profit before income tax and social contribution 210,374 192,791 85,788 Combined income tax and social contribution rate 34 % 34 % 34 % Tax using the Company’s domestic tax rate (71,527 ) (65,549 ) (29,168 ) Interest on own capital 2,138 1,469 - Expected income tax expense and interest on own capital (69,389 ) (64,080 ) (29,168 ) Tax incentives - 219 346 Impairment loss (intangible) (6,864 ) - - Other permanent exclusions (additions) (8,164 ) (1,276 ) (397 ) Income Tax and Social Contribution Expenses (84,417 ) (65,137 ) (29,219 ) Current (95,375 ) (66,912 ) (39,457 ) Deferred 10,958 1,775 10,238 (84,417 ) (65,137 ) (29,219 ) Effective rate 40 % 34 % 34 % Amounts recognized directly in shareholders' equity . December 31, 2021 December 31, 2020 December 31, 2019 Cancellation of the stock option plan - - 6,244 Stock option plan compensation (147 ) 45 - Total (147 ) 45 6,244 Current - 8,698 (2,556 ) Deferred (147 ) (8,653 ) 8,800 Total taxes recognized in equity (147 ) 45 6,244 Deferred tax The composition and changes in the deferred income tax and social contribution are described below: December 31, 2021 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 2,038 - (437 ) - 76 1,677 1,739 (62 ) Salaries and welfare charges 18,447 - 6,354 - 968 25,768 25,768 - Lease 2,168 - (41 ) - (5 ) 2,122 2,122 - Other items (8,629 ) - 2,630 6,913 (307 ) 607 2,440 (1,833 ) Indemnity on stock options plan 214 (147 ) (67 ) - - - - - Tax loss carry amount 914 - 2,519 (1,618 ) - 1,815 3,228 (1,413 ) Net tax liability (assets) 15,152 (147 ) 10,958 5,294 732 31,989 35,297 (3,308 ) December 31, 2020 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 1,597 - 107 - 334 2,038 2,075 (37 ) Salaries and welfare charges 10,122 - 7,236 - 1,090 18,447 18,447 - Lease 1,583 - 486 - 98 2,168 2,168 - Other items (2,435 ) - (1,119 ) (4,956 ) (119 ) (8,629 ) 66 (8,695 ) Indemnity on stock options plan 13,304 (8,653 ) (4,757 ) - 321 214 214 - Tax loss carry amount 806 - (178 ) - 286 914 914 - Net tax liability (assets) 24,977 (8,653 ) 1,775 (4,956 ) 2,010 15,152 23,884 (8,732 ) December 31, 2019 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 1,653 - 350 - (406 ) 1,597 1,597 - Salaries and welfare charges 6,643 - 3,447 - 32 10,122 10,122 - Lease - - 1,589 - (7 ) 1,583 1,583 - Other items (1,335 ) - (493 ) (611 ) 4 (2,435 ) 261 (2,696 ) Indemnity on stock options plan - 8,800 4,527 - (23 ) 13,304 13,304 - Tax loss carry amount - - 818 - (11 ) 806 806 - Net tax liability (assets) 6,961 8,800 10,238 (611 ) (411 ) 24,977 27,673 (2,696 ) |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
Earnings per share | 27 Earnings per share Basic and diluted earnings per share The calculation of basic earnings per share was based on the net income attributed to holders of common shares and the weighted average number of outstanding common shares. The calculation of diluted earnings per share was based on the net income attributed to holders of common shares and the weighted average number of outstanding common shares, after adjustments for all potential diluted common shares. December 31, 2021 December 31, 2020 December 31, 2019 Numerator Profit attributable to holders of common shares 125,957 127,654 56,534 Denominator Weighted average number of basic shares held by shareholders 121,777,128 119,960,383 122,312,323 Earnings per share – basic 1.03 1.06 0.46 Numerator Profit attributable to holders of common shares 125,957 127,654 56,534 Denominator Weighted average number of diluted shares held by shareholders 125,155,798 123,287,891 122,375,414 Net earnings per share – diluted 1.01 1.04 0.46 Weighted average number of common shares December 31, 2021 December 31, 2020 December 31, 2019 Weighted average common shares (basic) 121,777,128 119,960,383 122,312,323 Effect of stock options when exercised 3,378,670 3,327,508 63,091 Weighted average number of common shares 125,155,798 123,287,891 122,375,414 |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments and risk management | |
Financial instruments and risk management | 28 Financial i nstruments and r isk m anagement 28.1 Financial instrument categories The Group maintains operations with derivative and non-derivative financial instruments. These instruments are managed to assure liquidity and profitability. The control policy consists of monitoring the terms contracted against the terms and condition current in the market. The Company does not make investments of a speculative nature in derivatives or any other risk assets. The estimated fair value of the Group's financial instruments considered the following methods and assumptions: • Cash and cash equivalents : recognized at cost plus income earned up to the closing date of the financial statements, which approximate their fair value. • Trade receivables : arise directly from the Group's operations, classified at amortized cost, are recorded at their original values, adjusted based on the exchange rate changes, when applicable, and subject to a provision for losses. Their carrying amount is a reasonable approximation of fair value. • Loans borrowings : borrowings • Derivative financial instruments : The Group used derivative financial instruments to manage the interest rate risk exposure. This risk arises from the possibility of the Group incurring losses because of interest rate fluctuations that increase finance costs related to loans. In April, 2021, the Group has decided to not engage in new derivative agreements to manage the foreign exchange risk exposure. Existing contracts were maintained. — non-deliverable forwards are used for operations with derivative instruments, for the discounted cash flow model for fair value calculation, with future dollar and interest assumptions obtained at B3 — , , . Black and Scholes fair value statistical model is used for transactions with currency option (dollar), with future dollar and interest assumption obtained at B3. The financial instruments were valued by calculating the present value through the use of market curves that impact the specific instrument on the calculation dates. For this, future curves of USD Libor 3M, exchange coupon, and currency quotation are used. For interest rate swaps, the present value of the asset position and the liability position, both are estimated by discounting cash flows at the interest rate of the currency in which the swap is denominated. The difference between the present value of the asset and the liability position of the swap generates its fair value. The following table shows the carrying amounts and fair values of financial assets and financial liabilities, segregated by category: December 31, 2021 Amortized cost Assets/liabilities measured at FVTPL Total Financial assets Cash and cash equivalents 135,727 - 135,727 Financial investments 798,786 - 798,786 Trade receivables 340,519 - 340,519 Contract assets 134,388 - 134,388 Derivatives - 896 896 Other assets 32,949 - 32,949 1,442,369 896 1,443,265 Financial liabilities Suppliers and other payables 33,566 - 33,566 Loans and borrowings 788,709 - 788,709 Lease liabilities 81,888 - 81,888 Accounts payable for business combination 85,726 - 85,726 Derivatives - 535 535 Contract liabilities 13,722 - 13,722 Other liabilities 15,329 - 15,329 1,018,940 535 1,019,475 December 31, 2020 Amortized cost Assets/liabilities measured at FVTPL Total Financial assets Cash and cash equivalents 162,827 - 162,827 Trade receivables 196,256 - 196,256 Contract assets 50,625 - 50,625 Derivatives - 8,837 8,837 Other assets 15,368 - 15,368 425,076 8,837 433,913 Financial liabilities Suppliers and other payables 15,312 - 15,312 Loans and borrowings 89,230 - 89,230 Lease liabilities 75,228 - 75,228 Derivatives - 5,392 5,392 Contract liabilities 9,987 - 9,987 Other liabilities 8,856 - 8,856 198,613 5,392 204,005 28.2 Financial r isk m anagement The Group’s operations ar e subject to the following risk factors: a. Market r isks The Group is exposed to market risks resulting from the normal course of its activities , such as inflation, interest rates and exchange rate changes . Thus, the Group's operating results may be affected by changes in national economic policy, especially regarding short and long-term interest rates, inflation targets and exchange rate policy. Exposures to market risk are measured by sensitivity analysis. a.1 Foreign c urrency – Exchange rate changes Foreign currency risk is inherent to the Group’s business model. The Group’s revenue is mainly denominated in foreign currency and, therefore, is exposed to exchange rate changes. The Group’s expenses, on the other hand, are mainly denominated in the Group’s functional currency (Brazilian Reais) and, therefore, are not exposed to exchange rate changes. The Group is exposed to exchange rate risk on its Financial Investments, suppliers and other payables, trade receivables, loans and borrowings, lease liabilities and derivatives. December, 2021 December, 2020 USD Other USD Other Financial investments 798,786 - - - Suppliers and other payables (8,763 ) (722 ) (3,057 ) (540 ) Trade receivables 233,724 7,273 160,411 3,855 Loans and borrowings (266,561 ) - (37,116 ) - Lease liabilities (32,159 ) (962 ) (30,307 ) - Derivatives 361 - (1,321 ) - Net exposure 725,388 5,589 88,610 3,315 The Group is exposed to exchange rate risk in other currencies. As it is immaterial, the Group did not carry out the sensitivity analysis. a.2 Exchange rate risk The Group is exposed to foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables, and borrowings are denominated and the respective functional currencies of the Company and its subsidiaries. a.3 Interest rate risk Derives from the possibility of the Group incurring gain s or losses resulting from changes in interest rates applicable to its financial assets and liabilities. The Group may also enter into derivative contracts in order to mitigate this risk. Sensitivity analysis of non-derivative financial instruments Exchange rate fluctuation and changes loans and borrowings . The Group mitigates its risks relating to non-derivative financial assets and liabilities substantially, through the contracting of derivative financial instruments. Accordingly , the Group identified the main risk factors that may generate losses for its operations with derivative financial instruments and this sensitivity analysis is based on three scenarios that may impact the Group’s future results and cash flows, as described below: (i) Probable s cenario: The Group's projections, based on internal and external data, considered: (i) the interest rate index in order to analyze the sensitivity of the index in short-term investments, whose average was 10.67% 0.27% for Libor (only applicable for some loans and borrowings) ; (ii) the exchange rate of R$ 5.30 by the Company , for the purpose s (ii) Adverse scenario: The adverse scenario rate is half the difference between the probable rate and the remote rate. (ii i) Remote s cenario: the highest projection expected by the Company for the next 12 months. For each scenario, the gross finance income or finance costs were calculated, excluding taxes and the maturity flow of each agreement. The base date considered was December 3 1 , 2021, projecting the indexes for one year and verifying their sensitivity in each scenario. Sensitivity analysis for interest rate risk Risk Exposure in R$ Probable scenario (i) Adverse Scenario (ii) Remote Scenario (iii) Short-term financial investments Interest rate increase - CDI 66,007 10.67 % 11.39 % 12.11 % 7,043 7,518 7,993 Loans and borrowings Interest rate increase - CDI (609,374 ) 10.67 % 11.39 % 12.11 % (65,020 ) (69,408 ) (73,795 ) Loans and borrowings Interest rate increase - Libor (179,333 ) 0.27 % 0.54 % 0.81 % (484 ) (968 ) (1,452 ) Effect on earnings (reduction) (8,367 ) (12,763 ) (17,160 ) Sensitivity analysis for exchange rate risk Risk Probable scenario (i) Adverse Scenario (ii) Remote Scenario (iii) Net exchange variation on transactions Exchange variation in the year Foreign currency appreciation - USD 5.30 5.50 5.70 Effect on earnings (increase) (5,718 ) (5,933 ) (6,378 ) 303 88 (357 ) As of December 31, 2021, the Group held agreements for financial derivatives (NDFs), with the purpose of reducing exchange rate risk. b. Credit risk Credit risk refers to the risk that a Group to incur financial losses. Credit risk is the risk of a with a client , which would cause financial loss. To mitigate these risks, the Group analyses the The Group applies the simplified standard approach to commercial financial assets, where the provision for losses is analyzed over the remaining life of the asset. In addition, the Group is exposed to credit risk with respect to financial guarantees granted to banks. The Group held cash and cash equivalents of R$ 135,727 on December 31, 2021 (2020: R$ 162,827) and financial investments of R$ 798,786 at December 31, 2021. The cash and cash equivalents and financial investments are held with bank and financial institution counterparties, which are rated BB- to A+, based on Standard & Poor’s ratings. The carrying amount of financial assets represents the maximum credit exposure. The maximum credit risk exposure on the date of the financial statements is: December 31, 2021 December 31, 2020 Hedge financial instruments (current and non-current) 896 8,837 Cash and cash equivalents 135,727 162,827 Financial investments 798,786 - Trade receivables 340,519 196,256 Contract assets 134,388 50,625 Other receivables (current and non-current) 32,949 15,368 At 31 December 2021, the exposure to credit risk for trade receivables, contract assets and other receivables by geographic region was as follows: December 31, 2021 December 31, 2020 NAE (North America and Europe) 297,430 180,522 North America 287,992 179,943 Europe 9,438 579 LATAM (Latin America) 202,528 75,577 APJ (Asia, Pacific and Japan) 7,917 6,150 Total 507,875 262,249 c. Liquidity risk The Group monitors liquidity risk by managing its cash resources and financial investments. Liquidity risk is also managed by the Group through its cash flow projection, which aims to ensure the availability of funds to meet the Group’s both operational and financial obligations. The Group also maintains approved credit lines with financial institutions, and other indebtedness such as working capital agreements in order to adequate levels of liquidity in the short, medium and long term s . The maturities of the long-term installments of the loans are described in note 1 . The following are the remaining contractual maturities of financial liabilities on the reporting date. The amounts are gross and undiscounted, including contractual interest payments and excluding the impact of netting agreements: 2021 Carrying amount Cash contractual cash flow 6 months or less 6- 12 months 1-2 years 2-5 Years Non-derivative financial liabilities Trade payables 33,566 33,566 33,566 - - - Loans and borrowings 788,709 974,942 136,161 88,045 171,022 579,714 Lease liabilities 81,888 87,662 12,435 12,251 22,284 40,682 Accounts payable for business combination 85,726 85,726 1,064 47,860 12,179 24,623 Contract liabilities 13,722 13,722 13,722 - - - Other payables (current and non-current) 15,329 15,329 15,329 - - - Derivatives 535 535 535 1,019,475 1,211,482 212,812 148,156 205,485 645,029 2020 Carrying amount Contractual cash flow 6 months or less 6-12 months 1-2 years 2-6 years Non-derivative financial liabilities Trade payables 15,312 15,312 15,312 - - - Loans and borrowings 89,230 111,779 78,898 7,313 23,901 1,667 Lease liabilities 75,228 93,242 11,393 10,470 19,053 52,326 Contract liabilities 9,987 9,987 9,987 - - - Other payables (current and non-current) 8,856 8,856 8,856 - - - Derivatives 5,392 5,392 1,920 3,472 204,005 244,568 126,366 21,255 42,954 53,993 Financing Lines Guaranteed unsecured account, reviewed annually, and paid upon request: December 30, 2021 December 31, 2020 Used - - Not used - 2,200 - 2,200 Bank credit lines December 30, 2021 December 31, 2020 Used 11,161 89,197 Not used 47,434 61,521 58,595 150,718 The Group has credit lines for working capital with the banks HSBC and Citibank , in the amount of US$10,500 or R$ 58,595 , at the exchange rate of 5.5805, the commercial selling rate for U.S. dollars as of December 31, 2021, as reported by the Brazilian Central Bank, partially used ( note 1 6 ). 28.3 Derivative financial instruments The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. As of December 31, 202 1 , the Group entered into purchase and sale agreement for derivative financial instrum ents (NDFs) in the amount of R$ (17) . Fair value estimated for derivative financial instruments contracted by the Group was determined according to information available in the market, mainly through financial institutions and specific methodologies of assessment. However, considerable judgment is necessary to understand market data in order to produce the fair value estimate for each operation. Consequently, the estimates do not necessarily indicate the amounts that will be effectively realized at settlement. As of December 31, 2021 , the Group had the following agreements for financial derivatives (NDFs): 2021 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value February 25, 2022 (560 ) 5.6220 (3,148 ) 5.3459 (17 ) Total (17 ) 2020 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value June 15, 2021 (3,100 ) 5.4928 (17,064 ) 5.4763 968 April 15, 2021 (800 ) 5.6345 (4,508 ) 5.1909 353 Total 1,321 The Group also uses options in order to protect exports against the risk of exchange variation. The Group may enter into zero-cost collar strategies, which consists of the purchase of a put option and the sale of a call option, contracted with the same counterparty and with a net zero premium. The composition of the balances involving options to buy and sell currencies is as follows: 2021 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value 01/21/2021 - 01/17/2022 875 Put option 4,900 5.8257 (349 ) 02/25/2021 - 02/25/2022 490 Put option 2,909 5.6490 (170) (519 ) 01/21/2021 - 01/17/2022 875 Call option (4,900 ) 5.5563 298 02/25/2021 - 02/25/2022 490 Call option (2,909 ) 5.4690 196 494 (25 ) 2020 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value 15/01 - 15/06/2021 1,800 Call option 587 5.6770 (12 ) 31/05 - 15/12/2021 2,800 Call option 786 5.5656 (569 ) 15/04 - 30/11/2021 6,900 Call option 2,161 5.5116 (1,277 ) (1,858 ) 15/01 - 15/06/2021 1,800 Put option (587 ) 5.4800 512 31/05 - 15/12/2021 2,800 Put option (786 ) 5.2425 862 15/04 - 30/11/2021 6,900 Put option (2,161 ) 5.3388 2,608 3,982 2,124 During 2021, the Group entered into an interest rate swap tr ansaction with the purpose of hedging the exposure to variable interest rate related to the Export Credit Note – NCE with Citibank. The interest rate profile of the Group’s interest-bea r ing financial instruments , as reported to the Group’s Management, is as follows : 2021 Maturity Notional (USD) Amount in R$ Floating rate receivable Fixed rate payable Fair value 07/16/2026 30,000 152,100 3-month LIBOR 3,07% 403 403 28.4 Classification of financial instruments by type of measurement of fair value The Group has financial instruments measured at fair value, which are qualified as defined below: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the group may have access to on the measurement date ; Level 2 - Observable information for the asset or liability, directly or indirectly, except for quoted prices included in Level 1 ; and Level 3 - Unobservable data for the asset or liability. Carrying amount Fair valu e December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Level 2 Derivatives: Non-Deliverable Forward - NDF (17 ) 1,321 (17 ) 1,321 Call and put option term 403 2,124 403 2,124 Interest rate swap (25 ) - (25 ) - 361 3,445 361 3,445 Non-derivatives Lease liabilities (81,888 ) (75,228 ) (87,662 ) (93,242 ) Loans and borrowings (788,709 ) (89,230 ) (974,942 ) (111,779 ) (870,597 ) (164,458 ) (1,062,604 ) (205,021 ) (870,236 ) (161,013 ) (1,062,243 ) (201,576 ) Cash and cash equivalents, financial investments, trade receivables, accounts payable for business combination and suppliers and other payables were not included in the table above. The Group understands that these financial instruments have no classification, as the carrying amount of these items is a reasonable approximation of fair value. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2021 | |
Related parties | |
Related parties | 29 Related parties Transactions with key management personnel The Group paid R$ 11,096 as of December 3 1 , 2021 (R$ 9,519 as of December 3 1 , 2020) as direct compensation to key management personnel. These amounts correspond to the executive board compensation, related social charges and short-term benefits and are recorded under line “General and administrative expenses”. In 202 0 , the amount of R$ 43,354 was paid to the key management personnel, due to the cancellation of the Group's stock option plan as disclosed in note 21 .c. The remaining amount, of R$628, was approved and paid in July 2021. The executive officers also participate in the Group's stock option program (see note 21 ). For the year ended on December 3 1 , 2021, R$ 99 (R$ 22 in 2020) were recognized in the statement of profit or loss. The Group has no additional post-employment obligation , as well as no other long-term benefits, such as premium leave and other severance benefits. The Group also does not offer other benefits in connection with the dismissal of its Senior Management ’s members, in addition to those defined by the Brazilian labor legislation in force. |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2021 | |
Operating segments | |
Operating segments | 30 Operating segments Operating segments are defined based on business activities that reflect how CODM - Chief Operating Decision Maker reviews financial information for decision. The Group's CODM is the Group's Board of Director. The CODM is in charge of the operational decisions of resource allocation and performance evaluation. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a consolidated basis for all subsidiaries. CODM makes decisions and regularly evaluates the performance of Group’s services as a whole in a single operational and reportable segment. The table below summarizes net revenues by geographic region: . December 31, 2021 December 31, 2020 December 31, 2019 NAE (North America and Europe) 699,878 471,763 309,365 North America 684,558 451,999 284,321 Europe 15,320 19,764 25,044 LATAM (Latin America) 694,334 435,987 332,692 APJ (Asia, Pacific and Japan) 50,168 48,769 35,106 Total (Note 23) 1,444,380 956,519 677,133 Net revenues by geographic area were determined based on the country where the sale was made. The net revenue from a single customer represents 20 % of the Company's total net revenues as of December 31, 2021 ( 20 % as of December 31, 2020 and 8% as of December 31, 2019). Revenue b y c lient c oncentration The following table sets forth net revenue contributed by the top client, and top ten clients for the periods indicated: . December 31, 2021 December 31, 2020 December 31, 2019 Top client 283,311 190,599 97,248 Top 10 clients 913,890 644,722 417,547 Geographic information of the Group's non-current assets The table below summarizes non-current assets, except deferred taxes, based on assets geographic location : . December 31, 2021 December 31, 2020 December 31, 2019 Brazil 837,362 97,887 93,016 Abroad: United States of America 38,417 36,010 32,612 Japan 176 398 1,055 China 2,239 776 545 Canada 284 196 - Portugal 387 - - Other countries 82 111 2 Total 878,947 135,378 127,230 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 31 Subsequent events Business combination – Somo acqui sition On January 14, 2022, the Company signed a Sale and Purchase Agreement (“Agreement”) to acquire Somo Global Ltd ("Somo"), a digital product agency headquartered in the United Kingdom (“UK”), to accelerate its growth in EMEA (Europe, Midle East and Africa). On January 27, 2022, the Company announced the completion of the Somo’s acquisition. According to the Agreement signed, the purchase price for the acquisition was R$ 341 million (US$63 million) paid in cash and 225,649 Class A common shares that were issued in connection with the transaction. The final purchase price is subject to adjustments, such as changes in working capital and net debt position. The Agreement also contemplates an earn-out clause of up to R$ 70 million (US$13 million) based on future performance. With this acquisition, CI&T will accelerate its growth in EMEA. With offices in the UK, USA and Colombia, Somo delivers digital ambitions at pace and scale across several verticals including automotive, financial services, utilities and telecom. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Basis of consolidation | a. Basis of consolidation i. Business combination The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. Any goodwill that may arise is tested annually for impairment. Any gains on a bargain purchase are recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not ii. Subsidiaries The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date in which control commences until the date in which control ceases. iii. Non-controlling interests (“NCI”) NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Company’s interest in a subsidiary that do not result in loss of control are accounted for as equity transactions. According to note 1.a. (iv) a with the partial spin-off of the subsidiary Sensedia S.A. in 2019, the Company no longer has non-controlling interest. iv. Transactions eliminated by consolidation Intra-group balances and transactions, and any unrealized income or expenses (except for foreign currency translation gain or losses) arising from intra-group transactions, are eliminated. Unrealized losses arising are eliminated in the same way as unrealized gain, but only to the extent that there is no evidence of impairment. |
Foreign currency | b. Foreign currency i. Transactions in foreign currency Transactions in foreign currency are translated into the respective functional currencies of the Company and its subsidiaries by the exchange rates at the dates of each such transaction. Monetary assets and liabilities denominated in foreign currencies on the reporting date are translated to the functional currency at the exchange rate on that date. Non-monetary assets and liabilities that are measured at fair value in foreign currency are retranslated to the functional currency at the exchange rate on the date in which the fair value was determined. Non-monetary items that are measured based on historical cost in foreign currency are translated at the exchange rate on the transaction date. Foreign currency differences are generally recognized in profit or loss and presented within finance costs. However, foreign currency differences resulting from the translation of investments abroad are recognized in other comprehensive income. ii. Foreign operations Assets and liabilities from foreign operations, including goodwill and fair value adjustments resulting from acquisitions, are translated into Reais at the exchange rates prevailing at the reporting date. Income and expenses from operations abroad are translated into Brazilian reais at the exchange rates that represent the average monthly rates for the respective period. Foreign currency differences are recognized in other comprehensive income. |
Revenue from contracts with customers | c. Revenue from contracts with customers Information on the Group's accounting policies related to contracts with customers is provided in note 23 . |
Employee benefits | d. Employee benefits i. Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. These liabilities are recognized at the amount of the expected payment if the Company has a present legal obligation to pay this amount due to service provided by the employee and the obligation can be estimated reliably. ii. Share-based payment arrangements The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as personnel expense, with a corresponding increase in equity, during the period in which employees unconditionally acquire the right to the awards. Amounts recognized as expenses are adjusted to reflect the number of awards for which there is an expectation that service and performance conditions will be met in such a way that the final amounts recognized as expenses are based on the number of awards that actually meet the service and performance conditions on the vesting date. The Group recognizes each expense according to the services rendered for each subsidiary where the employee participating in the plan works, with the counterpart at: (a) increase in equity if the services rendered are received in a transaction with a share-based payment settled in equity instruments; (b) or, if the services rendered are acquired in a transaction with a share-based payment settled in cash (or other assets), a liability must be recognized The fair value of the amount payable to employees related to the rights on the valuation of shares, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities during the period in which employees unconditionally acquire their right to payment. The liability is remeasured at each reporting date and on the settlement date, based on the fair value of the rights on the valuation of the shares. Any changes in the fair value of the liability are recognized in the profit or loss . When the granting of an equity instrument is canceled or settled during the vesting period, the entity must account for the cancellation or settlement as an acceleration of the vesting period and, therefore, must immediately recognize the amount that would be recognized as services received over the remaining vesting period. In cases where the stock option plan is cancelled, any payments made to employees at the time of the cancellation must be accounted for as a repurchase of an equity instrument, that is, in a reduction account of shareholders' equity, except if the payment exceeds the fair value of the equity instruments granted, measured on the repurchase date. Any surplus must be recognized as an expense for the period. However, if the share-based payment arrangement present liabilities components, the entity must remeasurement the fair value of the corresponding liability on the date of cancellation or settlement. Any payment made to settle these liability components should be accounted for as an extinguishment of the liability. |
Financial income and financial expenses | e. Financial income and financial expenses The Group's financial income and financial • Interest income; • Interest expense; • The net gains or loss on financial assets measured at fair value through profit or loss; • The foreign currency gains or losses on financial assets and financial liabilities. Interest income or expense is recognized using the effective interest method. The Company classifies dividends and interest on equity paid as cash flows used in financing activities. The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts though the expected life of the financial instrument to: • the gross carrying amount of the financial asset; or • at the amortized cost of the financial liability. In calculating interest income or expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not impaired) or the amortized cost of the liability. However, for financial assets that have become credit-impaired after the initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis. |
Income tax | f. Income tax Income tax expenses comprises current and deferred income and social security contribution taxes. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. The Company has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted for them under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. i. Current tax Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year and any adjustment to taxes payable or receivable in respect of prior years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income tax, if any. It is measured using tax rates enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. i i Deferred taxes Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: (i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and (ii) Temporary differences related to investments in subsidiaries to the extent that the Company can control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. Deferred tax assets are recognized in respect of tax losses and unused deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for each individual subsidiary. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that they are no longer probable. Deferred tax assets and liabilities are measured based on the rates that are expected to be applied to temporary differences when they are reversed, based on the rates that were enacted up to the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the way the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if certain criteria are met. |
Property, plant and equipment | g. Property, plant and equipment i. Recognition and measurement Property, plant and equipment items are measured at the historical cost of acquisition or construction, deducted from accumulated depreciation and any impairment losses. Any gain or loss on the disposal of an item of property, plant and equipment is recognized in profit or loss. ii. Subsequent expenditure Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. iii. Depreciation Depreciation is calculated to write-off the cost of items of property, plant and equipment, less their estimated residual values using the straight-line method based on the estimated useful lives and is recognized in profit and loss. Land is not depreciated. The estimated useful lives of property, plant and equipment for current and comparative years are as follows: IT equipment 2 to 5 years Furniture and fixtures 7-10 years Vehicles 5 years Leasehold improvements 1 to 8 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Intangible assets and goodwill | h. Intangible assets and goodwill i. Recognition and measurement Goodwill Goodwill arising from the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Brands and Customer relationship Brands and customer relationship acquired through business combinations are recognized at their fair value at the acquisition date and depreciated over their expected benefit period. Software Software licenses are capitalized based on the costs incurred to acquire the software and prepare them to be ready for use and depreciated over their expected benefit period. Costs associated with software maintenance are recognized as expenses as incurred. Development costs directly attributable to the design and testing of identifiable and unique software products, controlled by the Company, are recognized as intangible assets. Directly attributable costs, which are capitalized as a part of the software product, include the costs of employee allocated to software development and an appropriate portion of the applicable indirect expenses. Other development costs that do not meet these criteria for capitalization are recognized as expenses as they are incurred. Development costs previously recognized as expenses are not recognized as assets in subsequent periods. Non-compete agreement Non-compete agreements acquired through business combinations are recognized at their fair value at the acquisition date and are amortized over the term of the agreements. Software in progress Software in progress is capitalized only if the expenditure can be measured reliably, the product or progress is technically and commercial feasible, future economic benefits are probable, and the Company intends to and has sufficient intention and resources to complete development and use or sell the asset. Otherwise, it is recognized in profit and loss as incurred. Subsequent to initial recognition, intangible in progress is measured at cost less any accumulated impairment losses. ii. Subsequent expenditure Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including trademarks and patents, are recognized in profit or loss as incurred. iii. Amortization Amortization is calculated using the straight-line method based on the estimated useful lives of the items, net of their estimated residual values. Amortization is generally recognized in profit or loss. Goodwill is not amortized. The estimated useful lives are as follows: Network software 5 years Internally developed software 3 years Customer relationship 6 - 8 years Non-compete agreement 5 years Brands 1 - 2 years Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate. |
Financial instruments | i) Financial instruments i. Recognition and initial measurement Trade receivables are initially recognized on the date they were originated. All other financial assets and liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not measured at fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issue. Trade receivables without a significant financing component are initially measured at the transaction price. ii. classification and subsequent measurement Financial assets Upon initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI — debt investment; FVOCI — equity investment; or FVTPL — fair value through profit or loss. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the presentation period following the change in business model. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at FVTPL: i. It is maintained within a business model aimed at maintaining financial assets to receive contractual cash flows; and ii. It is contractual terms give rise on specific dates to cash flows that are related to the payment of principal and interest on the outstanding principal value. All financial assets not classified as measured at amortized cost, as described above, are classified as at FVTPL. This includes all derivative financial assets. Upon initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured Financial asset - Business model assessment The Company carries out an assessment of the objective of the business model in which a financial asset is held in the portfolio because it better reflects the way the business is managed, and the information is provided to Management. Information considered includes: i. The stated policies and objectives set for the portfolio and the operation of those policies in practice. They include whether the Management strategy focuses on achieving contractual interest income, maintaining a particular interest rate profile, matching the duration of financial assets with the duration of related liabilities or expected cash outflows, or realizing cash flows through the sale of assets; ii. How the portfolio's performance is assessed and reported to the Group's Management; iii. The risks that affect the performance of the business model (and the financial assets held according to that business model) and how those risks are managed; iv. How the managers of the business are compensated – e.g., whether compensation is based on the fair value of assets managed or on the contractual cash flows earned; and v. The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales. Transfers of financial assets to third parties in transactions that do not qualify for are not considered sales, in a manner consistent with the continuous recognition of the assets of the Company and its subsidiaries. Financial assets held for trading or managed and whose performance is evaluated on a fair value basis are measured at fair value through profit or loss. Financial asset – assessment whether contractual cash flows are solely principal and interest payments For the purposes of this assessment 'principal' is defined as the fair value of the financial asset upon initial recognition. Interest' is defined as consideration for the time value of money and the credit risk associated with the principal amount outstanding over a given period of time and for the other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. The Group considers the contractual terms of the instrument to assess whether contractual cash flows are solely payments of principal and interest. This includes assessing whether the financial asset contains a contractual term that could change the timing or value of the contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: • Contingent events that change the amount or timing of cash flows; • Terms that can adjust the contractual rate, including variable rates features; • Prepayment and extension features; and • Terms that limit the Group's access to cash flows from specific assets (e.g., based on the performance of an asset). The prepayment feature is consistent with the principal and interest payment criteria if the prepayment amount mostly represents unpaid principal and interest on the outstanding principal amount – which may include reasonable additional compensation for early termination of the contract. In addition, for a financial asset acquired for a value less than or greater than the nominal value of the contract, the permission or requirement for prepayment for an amount that represents the nominal value of the contract plus contractual interest (which also may include reasonable additional compensation for early termination of the contract) accumulated (but not paid) is treated as consistent with this criterion if the fair value of the prepayment is insignificant at initial recognition. Financial assets - Subsequent measurement and profit and loss • Financial assets at FVTPL These assets are subsequently measured at fair value. The net gain, including interest, is recognized in profit or loss. • Financial assets at amortized cost These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gains or losses on derecognition are recognized in the profit or loss. Financial liabilities - classification, subsequent measurement and profit and loss Financial liabilities were classified as measured at amortized cost or FVTPL. A financial liability is classified as measured at fair value through profit or loss if it is a derivative or is designated as such upon initial recognition. Financial liabilities measured at FVTPL are measured at fair value and net income, including interest, is recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense, foreign exchange gains and losses are recognized in profit or loss. Any gains or losses on derecognition are also recognized in profit or loss. iii. Derecognition Financial assets The Group derecognizes a financial asset when the contractual rights to the cash flows of the asset expire, or when the Group transfers the contractual rights to receive the contractual cash flows on a financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or in which the Group neither transfers nor substantially maintains all the risks and rewards of ownership of the financial asset nor retains control over the financial asset. Financial liabilities The Group derecognizes a financial liabilities when their contractual obligations are discharged, cancelled or expire. The Group also derecognizes a financial liabilities when their terms are modified and the cash flows of the modified liabilities are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Upon derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss. iv. Offsetting The financial assets or liabilities are compensated, and the net value presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the amounts and intends to settle them on a net basis or to dispose of the asset and settle the liabilities simultaneously. v. Derivative financial instruments The Group holds derivative financial instruments to manage its exposures to the risks of changes in foreign currency and interest rates. Derivatives are initially measured at fair value. After initial recognition, derivatives are measured at fair value and changes in fair value are recorded in profit or loss. |
Equity | j. Equity Share capital On December 31, 2021, the Company´s share capital is R$ 36 22.a Share premium The share premium refers to the difference between the subscription price that the shareholders paid for the shares and their nominal value. Capital reserve The breakdown of capital reserves is arising from the corporate restructuring occurred in 2021 (note 1.a), share-based compensation (note 21.d) and the share issuance costs (note 21.c). |
Impairment | k. impairment Non-derivative financial assets Financial instruments and contract assets The Group recognizes provisions for expected credit losses on: • Financial assets measured at amortized cost • Contract assets Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime expected credit losses. Management considers a financial asset to be in default when: • It is unlikely that the creditor will fully pay its credit obligations to the Group, without resorting to actions such as the realization of the guarantee (if any); or • The financial asset is more than 360 days overdue; • Lifetime credit losses are the expected credit losses that result from all possible default events over the expected life of the financial instrument. The maximum period considered in the expected credit loss estimate is the maximum contractual period over which the Group is exposed to credit risk. Measurement of expected credit losses The Group considers evidence of impairment of assets measured at amortized cost at the collective level. The assets are assessed collectively for any loss of value that could have occurred but had not yet been identified. Assets are assessed collectively for impairment based on the grouping of assets with similar risk characteristics. In assessing the impairment as a whole, the Group uses historical trends in the probability of default, the recovery period and the loss amounts incurred, adjusted to reflect the Management’s judgment on the assumptions if the current economic and credit conditions are such that actual losses are probable to be higher or lower than those suggested by historical trends. A loss by reduction to the recoverable amount is calculated as the difference between the recorded amount and the present value of estimated future cash flows, discounted by the original effective interest rate of the asset. Losses are recognized in profit or loss and deducted from the gross carrying amount of the assets. The allowance for loss on financial assets measured at amortized cost is deducted from the gross carrying amount of the assets. Write-off The gross carrying amount of a financial asset is written off when the Group has no reasonable expectation of recovering the financial asset in whole or in part. With respect to customers, the Group assesses the time and value of the write-off based on whether there is reasonable expectation of recovery. The Group does not expect any significant recovery of the amount written off. However, written off financial assets may still be subject to credit for the fulfillment of the Group’s procedures for recovering the amounts due. Non-financial assets At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal. Value in use is based on estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market evaluations of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the carrying amount of the asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. Impairment losses relating to goodwill are not reversed. For other assets, impairment losses are reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization if no impairment losses had been recognized. |
Provisions | l. Provisions Disputes and litigations The provision for disputes and litigation is recognized when it is probable that the Group will be required to make future payments as a result of past events. Such payments include, but are not limited to, the various claims, processes and actions initiated by both third parties and the Company, relating to labor disputes, complaints from tax authorities and other judicial matters. Provision for indemnity of the stock options plan The provision for the indemnity of the stock options plan was recognized upon the cancellation of all programs and agreements entered into in the Group’s Stock Option Plan. Payments to the beneficiaries of the plan grant to the Company full discharge on any right related to the Plan. |
Leases | m. Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is or contains a lease if the contract transfers the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement or upon the modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component of the lease based on individual prices. However, for property leases, the Group elected to not separate the non-lease components and account for the lease and non-lease components as a single component. The Group recognizes a right-of-use asset and a lease liability at lease commencement. The right-to-use asset is initially measured at cost, which comprises the initial measurement amount of the lease liability, adjusted for any lease payments made at or before the commencement date, less any leasing incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In this case, the right of use will be depreciated over the useful life of the underlying asset, which is determined in same basis as that of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of lease liabilities. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if this rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as a discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external sources of financing and making some adjustments to reflect the terms of the contract and the type of leased asset. Lease payments included in the measurement of the lease liability comprise the following: • Fixed payments, including in-substance fixed payments; and • Amounts expected to be payable under a residual value guarantee. Regarding the option to extend office leases, the Group applies a 5-year additional to determine ROU amounts, except when there is no certain probability of continuity of activities in such locations. Renewal clauses generally use an inflation update index (IGPM or IPCA) that is updated annually. For the periods disclosed, the Group does not have lease agreements with variable payments. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments resulting from a change in index or rate, if there is a change in the Group’s estimate of the amounts expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment to the carrying amount of the right-of-use asset is made or is accounted for in the profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The right-of-use asset is amortized using the straight-line method from the commencement date to the end of the lease term. Short-term leases and leases of low-value assets The Group has chosen not to recognize right-of-use assets and liabilities for leases of low value assets and short-term leases. The Group recognizes lease payments associated with these leases as expenses on a straight-line basis over the lease term. |
Fair value measurement | n. Fair value measurement ‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date of the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk. A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities (see note 5). When one is available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as ‘active’ if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, the Group uses valuation techniques that maximize the use of relevant observable data and minimize the use of unobservable inputs. The chosen valuation technique incorporates all the factors that market participants would consider in pricing a transaction. |
Segment reporting | o. Segment reporting In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker (“CODM”), is the Board of Directors (“BoD”), in charge for the operational decisions of resource allocation and performance evaluation. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a consolidated basis for all subsidiaries. Disaggregated information is only reviewed at the revenue level (Note 23), with no corresponding detail at any level of margin or profitability. See note 23 for a breakdown of Net Revenue and selected assets by geographic location. |
List of direct and indirect s_2
List of direct and indirect subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
List of direct and indirect subsidiaries | |
Schedule of information on the Company's direct and indirect subsidiaries | Information on the Company's direct and indirect subsidiaries is presented below: December 31, 2021 December 31, 2020 December 31, 2019 Subsidiaries Country of Origin Direct Indirect Direct Indirect Direct Indirect CI&T Delaware LLC (a) United States 100% - - - - - CI&T Software S.A. Brazil - 100% - - - - CI&T, Inc. ("CI&T US") United States - 100% 100% - 100% - CI&T Software Inc. ("CI&T Canada") Canada - 100% - 100% - 100% CI&T UK Limited. ("CI&T UK") United Kingdom - 100% - 100% - 100% CI&T Argentina. S/A Argentina - 100% - 100% - 100% CI&T Japan, Inc. Japan - 100% 100% - 100% - CI&T China Inc. China - 100% - 100% - 100% CI&T IOT (b) Brazil - - 100% - 100% - CI&T Portugal Unipessoal Lda. (c) Portugal - 100% 100% - - - CI&T Australia PTY Ltd. (d) Australia - 100% 100% - - - Dextra Inc. (e) United States - 100% - - - - CINQ Inc. (e) United States - 100% - - - - |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Schedule of estimated useful lives of property, plant and equipment | The estimated useful lives of property, plant and equipment for current and comparative years are as follows: IT equipment 2 to 5 years Furniture and fixtures 7-10 years Vehicles 5 years Leasehold improvements 1 to 8 years |
Schedule of estimated useful lives of intangible assets | The estimated useful lives are as follows: Network software 5 years Internally developed software 3 years Customer relationship 6 - 8 years Non-compete agreement 5 years Brands 1 - 2 years |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Schedule of fair value of each major class of consideration transferred on the acquisition date | The following table summarizes the fair value of each major class of consideration transferred on the acquisition date. Cash 700,938 Accounts payable for business combination (note 18) 82,635 Accounts payable 45,726 Retained amount 30,000 Other 6,909 Total consideration transferred 783,573 |
Schedule of identifiable net assets acquired | The following table summarizes the recognized amounts of assets acquired and liabilities assumed on the acquisition date: Assets Fair Current Cash and cash equivalents 8,216 Trade receivables (a) 56,313 Recoverable taxes 1,668 Other assets 2,386 Current assets 68,583 Non-current Recoverable taxes 3,932 Property, plant and equipment (note 13) 9,149 Intangible assets (i) 148,523 Right-of-use assets (note 15) 5,414 Non-current assets 167,018 Total assets 235,601 Liabilities Fair value Current Suppliers 5,627 Lease liabilities (note 15) 3,105 Salaries and welfare charges 23,436 Tax liabilities 10,569 Contract liabilities 1,933 Other liabilities 26 Current liabilities 44,696 Non-current Other liabilities 18 Lease liabilities (note 15) 3,035 Non-current liabilities 3,053 Total liabilities 47,749 Total identifiable net assets acquired 187,852 (a) Gross contractual amount receivable is R$ 56,854 and R$ 541 is not expected to be collected. |
Schedule of acquired intangible assets at fair value | (i) According to the purchase price on August 10, 2021: Fair value Network software (note 14) 191 Internally developed software (note 14) 22,613 Customer relationship (note 14) 88,961 Non-compete agreement (note 14) 16,257 Brands (note 14) 20,501 Total intangible assets at fair value (note 14 148,523 |
Schedule of goodwill arising from acquisition | Goodwill arising from the acquisition has been recognized as follows : Note Goodwill Consideration transferred 9.a 783,573 Fair value of identifiable net assets 9.c (187,852 ) Goodwill (note 14 595,721 |
Cash and cash equivalents and_2
Cash and cash equivalents and financial investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents and financial investments | |
Schedule of cash and cash equivalents | . December 31, 2021 December 31, 2020 Cash and cash equivalents 69,720 59,640 Short-term financial investments 66,007 103,187 Total 135,727 162,827 |
Schedule of financial investments | . December 31, 2021 December 31, 2020 Financial investments 798,786 - |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivables | |
Schedule of trade receivables | The balances of trade receivables are presented, as follows: December 31, 2021 December 31, 2020 Trade receivables - Brazil market 100,581 32,275 Trade receivables - Other markets 240,997 164,673 (-) Expected credit losses (1,059 ) (692 ) Trade receivables, net 340,519 196,256 |
Schedule of trade receivables by maturity date | The balances of trade receivables by maturity date are as follows: December 31, 2021 December 31, 2020 Not due 319,450 167,939 Overdue: from 1 to 60 days (1) 20,020 28,012 61 to 360 days 1,564 939 Over 360 days 544 58 Total 341,578 196,948 |
Schedule of movement of impairment loss on trade receivables | The movement of impairment loss on trade receivables is as follows: Balance as of January 1, 2019 (352 ) Provision (430 ) Reversal 378 Partial investment spin-off 160 Exchange variation (2 ) Balance as of December 31, 2019 (246 ) Provision (1,751 ) Reversal 1,337 Exchange variation (32 ) Balance as of December 31, 2020 (692 ) Provision (3,106 ) Reversal 2,826 Exchange variation (87 ) Balance as of December 31, 2021 (1,059 ) |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other assets. | |
Schedule of other assets | December 31, 2021 December 31, 2020 Prepaid expenses (a) 29,743 13,221 Rental security deposits 2,471 1,402 Suppliers’ advances 162 673 Other 592 72 Total 32,968 15,368 Current 29,994 12,874 Non-current 2,974 2,494 Total 32,968 15,368 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment. | |
Schedule of property, plant and equipment | . December 31, 2021 December 31, 2020 IT equipment 35,230 15,407 Furniture and fixtures 6,283 6,364 Vehicles - 27 Hardware devices - 291 Leasehold improvements (a) 16,051 16,460 Property, plant and equipment in progress 157 222 Total 57,721 38,771 |
Schedule of changes in the balances of property, plant and equipment | The changes in the balances are as follows: . IT equipment Furniture and fixtures Vehicles Leasehold improvements In progress Hardware devices Total Cost: Balance as of January 1, 2020 24,013 11,903 295 22,345 14 - 58,570 Exchange rate changes 1,285 760 69 1,155 - - 3,269 Additions 11,315 1,365 - 461 5,998 487 19,626 Disposals (1,761 ) (1,091 ) (278 ) (1,352 ) (103 ) - (4,585 ) Transfers - 4 - 5,683 (5,687 ) - - Balance as of December 31, 2020 34,852 12,941 86 28,292 222 487 76,880 Exchange rate changes 386 176 - 375 37 - 974 Spin-off (128 ) (4 ) - - (313 ) (625 ) (1,070 ) Addition due to business combination (note 9) 7,379 1,018 - 752 - - 9,149 Additions 22,527 301 - 1,052 1,724 138 25,742 Disposals (1,376 ) (563 ) (86 ) (909 ) (160 ) - (3,094 ) Transfers - - - 1,353 (1,353 ) - - Balance as of December 31, 2021 63,640 13,869 - 30,915 157 - 108,581 Depreciation: Balance as of January 1, 2019 (15,151 ) (5,340 ) (159 ) (7,194 ) - - (27,844 ) Effect of movements in exchange rates (48 ) (22 ) (5 ) (21 ) - - (96 ) Investment spin-off 575 80 - 361 - - 1,016 Depreciation (3,850 ) (1,486 ) (78 ) (2,928 ) - - (8,342 ) Disposals 3,382 1,088 133 21 - - 4,624 Balance as of December 31, 2019 (15,092 ) (5,680 ) (109 ) (9,761 ) - - (30,642 ) Exchange rate changes (565 ) (207 ) (28 ) (154 ) - - (954 ) Additions (5,386 ) (1,616 ) (50 ) (3,245 ) - (196 ) (10,493 ) Disposals 1,598 926 128 1,328 - - 3,980 Balance as of December 31, 2020 ( 19,445 ) (6,577 ) (59 ) (11,832 ) - (196 ) (38,109 ) Exchange rate changes (214 ) (42 ) - 57 - - (199 ) Spin-off 10 2 - - - 280 292 Additions (9,625 ) (1,451 ) (5 ) (3,908 ) - (84 ) (15,073 ) Disposals 864 482 64 819 - - 2,229 Balance as of December 31, 2021 ( 28,410 ) (7,586 ) - (14,864 ) - - (50,860 ) Balance as of: December 31, 2020 15,407 6,364 27 16,460 222 291 38,771 December 31, 2021 35,230 6,283 - 16,051 157 - 57,721 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Schedule of intangible assets and goodwill | . December 31, 2021 December 31, 2020 Network software 2,399 1,096 Internally developed software (i) 3,911 2,385 Software in progress 391 115 Customer relationship (ii) 84,195 - Non-compete agreement (ii) 13,897 - Brands (ii) 14,541 - Subtotal 119,334 3,596 Goodwill (iii) 619,469 14,570 Total 738,803 18,166 |
Schedule of change in the balances of intangible assets | The change in the balances of intangible assets as follows: Network software Internally developed software Software in progress Customer relationship Non-compete agreement Brands Goodwill Total Cost: Balance as of January 1, 2020 9,229 11,444 445 - - - 14,570 35,688 Exchange rate changes 331 - - - - - - 331 Additions 188 646 931 - - - - 1,765 Disposals (16 ) - - - - - - (16 ) Transfers - 1,261 (1,261 ) - - - - - Balance as of December 31, 2020 9,732 13,351 115 - - - 14,570 37,768 Additions due to business combination (note 9) 191 22,613 - 88,961 16,257 20,501 595,721 744,244 Exchange rate changes 38 - - - - - 9,178 9,216 Additions 1,999 1,428 738 - - - - 4,165 Impairment loss (a) - (20,723 ) - - (2,795 ) - - (23,518 ) Write-off (18 ) - (550 ) - - - - (568 ) Transfers - (88 ) 88 - - - - - Balance as of December 31, 2021 11,942 16,581 391 88,961 13,462 20,501 619,469 771,307 Amortization: Balance as of January 1, 2019 ( ) ( ) - - - - - ( ) Effect of movements in exchange rates (165 ) - - - - - - (165 ) Investment spin-off 37 - - - - - - 37 Amortization (874 ) (1,903 ) - - - - - (2,777 ) Disposals 131 - - - - - - 131 Balance as of December 31, 2019 (7,657 ) (9,486 ) - - - - - (17,143 ) Exchange rate changes (298 ) - - - - - - (298 ) Additions (697 ) (1,480 ) - - - - - (2,177 ) Disposals 16 - - - - - - 16 Balance as of December 31, 2020 (8,636 ) (10,966 ) - - - - - (19,602 ) Exchange rate changes (32 ) - - - - - - (32 ) Additions (893 ) (1,708 ) - (4,766 ) (1,189 ) (5,960 ) - (14,516 ) Impairment loss (a) - - - - 1,624 - - 1,624 Write-off 18 4 - - - - 22 Balance as of December 31, 2021 (9,543 ) (12,670 ) - (4,766 ) 435 (5,960 ) - (32,504 ) Balance at: December 31, 2020 1,096 2,385 115 - - - 14,570 18,166 December 31, 2021 2,399 3,911 391 84,195 13,897 14,541 619,469 738,803 (a) After the consummation of the Dextra Group acquisition, the Company decided to discontinue the investment in the intangible assets, acquired in the business combination and initially recognized as internally developed software, in the amount of R$20,723, due to growth strategies in the digital transformation market, with the purpose more directed to the development of customized and on demand software for customers. The residual amount with respect to a non-compete agreement, in the amount of R$1,171, was also recognized as impairment. The total amount of impairment loss of intangible assets was recognized in the caption “Other income (expenses), net” (note 24.1), in the amount of R$21,895, as of December 31, 2021. |
Schedule of main assumptions used in CGUs | The values attributed to the main assumptions, as detailed below, represent the assessment of future management trends in relevant sectors and were based on historical data from internal and external sources. . December 31, 2021 December 31, 2020 Discount rate - before tax 19.06 % 12.54 % Discount rate - after tax 12.94 % 12.38 % Budgeted EBITDA growth rate (average for the next five years) 22 % 20 % Terminal value growth rate 3.5 % 3.5 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of right-of-use assets | Right-of-use assets . December 31, 2021 December 31, 2020 Properties 69,441 66,459 Vehicles 4,173 2,809 IT equipment 213 497 Total 73,827 69,765 |
Schedule of change in the balances of right-of-use assets | The changes to balances of the right-of-use are : Properties Vehicles IT equipment Total Cost: Balance as of January 1, 2020 84,324 3,213 851 88,388 Foreign currency difference 8,370 10 - 8,380 Additions 14,305 2,503 - 16,808 Derecognition of right-of-use assets (18,450 ) (718 ) - (19,168 ) Balance on December 31, 2020 88,549 5,008 851 94,408 Additions due to business combination (note 9.c) 5,414 - - 5,414 Foreign currency difference 2,744 3 - 2,747 Additions 11,815 3,724 - 15,539 Derecognition of right-of-use assets (2,200 ) (2,363 ) - (4,563 ) Remeasurement of right-of-use assets 1,318 - - 1,318 Balance on December 31, 2021 107,640 6,372 851 114,863 Depreciation: Balance at January 1, 2019 - - - - Foreign currency difference (32 ) - - (32 ) Depreciation (13,402 ) (985 ) (71 ) (14,458 ) Balance on December 31, 2019 (13,434 ) (985 ) (71 ) ( 14,490 ) Foreign currency difference (979 ) (9 ) - (988 ) Depreciation (15,320 ) (1,609 ) (283 ) (17,212 ) Derecognition of right-of-use assets 7,643 404 - 8,047 Balance on December 31, 2020 (22,090 ) (2,199 ) (354 ) (24,643 ) Foreign currency difference (856 ) (1 ) - (857 ) Depreciation (16,535 ) (1,944 ) (284 ) (18,763 ) Derecognition of right-of-use assets 1,657 1,945 - 3,602 Remeasurement of right-of-use assets (376 ) - - (376 ) Balance on December 31, 2021 (38,200 ) (2,199 ) (638 ) (41,037 ) Net balance at: December 31, 2020 66,459 2,809 497 69,765 December 31, 2021 69,441 4,173 213 73,827 |
Schedule of lease liabilities | Lease liabilities . Average discount rate (per year) December 31, 2021 December 31, 2020 Properties 10.88% (2020 : 77,366 71,765 Vehicles 14.54% (2020: 12.69%) 4,285 2,940 IT equipment 7.70% (2020 : 237 523 Total 81,888 75,228 Current 21,214 14,569 Non-current 60,674 60,659 Total 81,888 75,228 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and borrowings | |
Schedule of loans and borrowings | Loans and borrowings operations can be summarized as follows: Currency Average interest rate per year (%) Year of maturity December 31, 2021 December 31, 2020 Itaú (i) USD 4.82% p.a. 2022 2,349 5,936 Santander Bank S/A (iv) BRL 12.87% p.a. 2021 - 33 Bradesco (i) BRL CDI + 3.57% / CDI 2021 / 2023 11,684 52,081 Banco do Brasil (ii) USD 3.05% 2021 - 20,748 HSBC - CI&T Inc. (iii) USD Prime rate + 1% 2021 - 10,432 Citibank - CI&T Inc. (iii) USD Libor 3 months rate + 1.90% 2022 11,164 - Banco do Brasil (ii) USD 2.37% p.a. 2022 56,551 - Citibank (ii) USD 2.28% p.a. / 2.30% p.a. 2022 28,328 - Santander Bank S/A (v) BRL CDI + 1.60% p.a. 2026 204,047 - Bradesco (i) BRL CDI 2026 306,417 - Citibank (ii) USD Libor 3 months rate + 2.07% 2026 168,169 - Total 788,709 89,230 |
Schedule of balances were included as current and non-current borrowings in the consolidated statement of financial position | These balances were included as current and non-current borrowings in the consolidated statement of financial position as follows: December 31, 2021 December 31, 2020 Current 164,403 75,377 Non-current 624,306 13,853 Total 788,709 89,230 |
Schedule of maturities of long-term loans and borrowings | The principal balances of long-term loans and borrowings as of December 3 1 , 2021 , mature as follows : Maturity 2023 112,031 2024 143,197 2025 196,925 2026 172,153 Non-current liabilities 624,306 |
Schedule of reconciliation of change in liabilities to cash flows arising from financing activities | The reconciliation of change in liabilities to cash flows arising from financing activities is shown below : Liabilities Leases Share premium Total Loans and borrowings Leases (note 15.b) and Reserves Balance as of January 1, 2021 89,230 75,228 116,072 280,530 Changes in cash flow from financing activities Proceeds from loans and borrowings 740,596 - - 740,596 Loans, borrowings and lease liabilities payments (75,196 ) (17,656 ) - (92,852 ) Issuance of common shares at initial public offering - - 915,947 915,947 Transaction cost of offering - - (66,876 ) (66,876 ) Share-based plan contributions - - 1,282 1,282 Interest on equity paid - - (6,288 ) (6,288 ) Dividends paid (note 22) - - (126,045 ) (126,045 ) Total changes in cash flow from financing activities 665,400 (17,656 ) 718,020 1,365,764 Exchange rate changes 601 2,054 - 2,655 Other changes - liabilities Additions due to business combination (note 9.c) - 6,139 - 6,139 New leases - 15,504 - 15,504 Remeasurement - 1,351 1,351 Interest expenses 23,366 6,369 - 29,735 Interest paid (12,149 ) (5,753 ) - (17,902 ) Other borrowing/lease costs 22,261 (213 ) - 22,048 Lease write-offs - (1,135 ) - (1,135 ) Total other changes - liabilities 33,478 22,262 - 55,740 Total other changes - equity - - 217,950 217,950 Balance as of December 31, 2021 788,709 81,888 1,052,042 1,922,639 Liabilities Leases Net Equity Total Loans and financing Leases (Note 15.b) Reserves Balance as of January 1, 2020 27,849 77,393 36,937 142,179 Financing cash flow variations Proceeds from loans and borrowings 144,269 - - 144,269 Loan and borrowings payments, and lease payments (88,107 ) (15,500 ) - (103,607 ) Interest on own capital - - (4,276 ) (4,276 ) Dividends paid - - (30,977 ) (30,977 ) Total changes in financing cash flows 56,162 (15,500 ) (35,253 ) 5,409 Effect of changes in exchange rates 1,310 7,657 - 8,967 Other changes - related to liabilities New leases - 16,715 - 16,715 Interest expense 5,281 5,023 - 10,304 Interest paid (3,880 ) (5,023 ) - (8,903 ) Other costs 2,508 - - 2,508 Lease write-offs - (11,037 ) - (11,037 ) Total other changes related to liabilities 3,909 5,678 - 9,587 Total other changes related to equity - - 114,388 114,388 Balance as of December 31, 2020 89,230 75,228 116,072 280,530 Liabilities Leases Net Equity Total Loans and financing Leases (Note 15 Reserves Balance as of January 1, 2019 42,288 81,893 85,330 209,511 Financing cash flow variations Loans and borrowings 8,179 - - 8,179 Loan and borrowings payments, and lease payments (24,161 ) (10,949 ) - (35,110 ) Interest on own capital - - (2,676 ) (2,676 ) Dividends paid - - (40,059 ) (40,059 ) Total changes in financing cash flows (15,982 ) (10,949 ) (42,735 ) (69,666 ) Effect of changes in exchange rates 484 (53 ) - 431 Other changes - related to liabilities Capital increase (Note 18.a) - - (43,500 ) (43,500 ) Partial spin-off (Note 1.a) - - 213 213 New leases - 6,496 - 6,496 Interest expense 1,928 6,135 - 8,063 Interest paid (1,912 ) (6,129 ) - (8,041 ) Other borrowing costs 1,043 - - 1,043 Total other changes related to liabilities 1,059 6,502 (43,287 ) (35,726 ) Total other changes related to equity - - 37,629 37,629 Balance as of December 31, 2019 27,849 77,393 36,937 142,179 |
Salaries and welfare charges (T
Salaries and welfare charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Salaries and welfare charges | |
Schedule of salaries and welfare charges | December 31, 2021 December 31, 2020 December 31, 2019 Salaries 31,342 15,258 10,311 Accrued vacation and charges 83,750 50,064 33,983 Bonus 72,810 52,312 26,015 Withholding income tax 20,604 10,604 7,519 Payroll charges (social contributions) 18,124 5,929 4,051 Others 7,543 7,627 6,029 Total 234,173 141,794 87,908 |
Schedule of the movement of the bonus accrual | The table below shows the movement of the bonus accrual: 2021 Balance as of January 1, 2021 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2021 Bonus 52,312 65,603 (50,402 ) 5,297 72,810 2020 Balance as of January 1, 2020 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2020 Bonus 26,015 51,916 (28,667 ) 3,048 52,312 2019 Balance as of January 1, 2019 Addition Payment Effect of movements in exchange rates Balance as of December 31, 2019 Bonus 20,466 26,033 (21,024 ) 540 26,015 |
Accounts payable for business_2
Accounts payable for business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts payable for business combination | |
Schedule of accounts payable for business combination | December 31, 2021 Remaining acquisition cost 48,817 Retained amount 30,000 Other 6,909 Total 85,726 Current 48,923 Non-current 36,803 Total 85,726 |
Schedule of the movement of the accounts payable for business combination | The table below shows the movement of the accounts payable for business combination : 2021 Balance as of August 10, 2021 (Note 2 Monetary adjustment Payment Balance as of December 31, 2021 Accounts payable for business combination (note 9) 133,573 3,091 (50,938 ) 85,726 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Provisions | |
Provisions | The Group is involved in tax and labor lawsuits that were considered probable losses and are provisioned according to the table below: Balance as of January 1, 2020 Provisions Reversal Balance as of December 31, 2020 Provisions Balance as of December 31, 2021 Tax 10 1 - 11 120 131 Labor 163 12 (25 ) 150 352 502 Total Provisions 173 13 (25 ) 161 472 633 |
Stock option plan (Tables)
Stock option plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock option plan | |
Schedule of general conditions of the Group’s stock option plan | The following are the general conditions of the Group’s stock option plan: Characteristics of the plans: Equity-settled 1 st 2 nd Program 3 rd Program 4 th Program Grant date 01/04/2020 01/04/2021 01/04/2021 Exercise Period: 6.8 years (i ) 5.8 years 5.8 years (i ) Exercise - ( i ) - - (i ) Limit date 01/01/2027 ( i ) 01/01/2027 01/01/2027 (i ) Activity of stock option number (+) Total number of granted options 3,940,478 666,616 187,820 (-) Canceled options 78,360 19,900 (=) Number of options not exercised 3,862,118 (ii ) 666,616 167,920 (ii ) (=) Number of outstanding options on 12/31/2021 3,862,118 666,616 167,920 (=) Number of exercisable options on 12/31/2021 1,244,994 - - Inputs used in the measurement Exercise price (in reais) 9.58 (i i 19.84 19.84 (i i Share price on the grant date (in reais) 21.68 (v) 21.68 21.68 (v) Volatility (% p.a.) 24.19% (i v 27.73% 27.73% ( i v Interest rate (% p.a.) 1.53% 2.66% 2.66% Option value (in reais) 0.48 (i ii 1.81 1.85 (i ii Remaining average term (expected lifetime) 3.7 years (vi) 4.3 years 4.3 years Effects on income for the year: Total expense attributed to the granting of options (R$) 1,846 1,275 298 Expenses incurred until December 31, 2020 (R$) 142 - - Expenses incurred until December 31, 2021 (R$) 668 251 48 Expenses to incur 1,036 1,024 250 |
Schedule of stock option program, settled in cash | Payable in cash Granting date 04/2020 10/2021 Exercise Period: 6.8 years (i) 5.2 years (i) Exercise Date - (i) - (i) Limit date for exercising the options 01/01/2027 (i) 01/01/2027 (i) Total number of options granted 69,774 12,130 Liabilities carrying amount as of December 31, 2021 1,307 52 |
Schedule of expenses recognized in profit or loss | e. Expenses recognized in profit or loss December 31, 2021 December 31, 2020 December 31, 2019 Plan in force: Equity settled 967 142 - Cash settled 1,318 41 - Canceled plan - - 1,677 Shares granted to executives’ officers 246 751 1,522 Expenses recognized in profit or loss (note 24) 2,531 934 3,199 Other effects in shareholders’ equity 1,282 1,751 - Total 3,813 2,685 3,199 (-) Effect of cash settled (1,318 ) (41 ) - Effect of movements in exchange rates 3 8 (29 ) Total shareholders’ equity 2,498 2,652 3,170 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Schedule of share capital | a. Share capital December 31, 2021 December 31, 2020 Number of ordinary nominative shares 132,197,896 121,086,781 Par value (i) 0.00027 0.56958 Share capital 36 68,968 |
Schedule of earnings reserves | December 31, 2021 December 31, 2020 December 31, 2019 Retained earnings reserve 125,957 95,515 23,979 |
Net revenue (Tables)
Net revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net revenue | |
Schedule of net operating revenue summarized by nature | The Group generates revenue primarily through the provision of services described in the table below, which is summarized by nature: December 31, 2021 December 31, 2020 Dec ember 31 20 19 Software development revenue 1,394,583 891,012 597,457 Software maintenance revenue 30,026 31,133 37,634 Revenue from software license agent 1,637 2,413 7,005 Consulting revenue 15,922 28,601 25,942 Other revenue 2,212 3,360 9,095 Total net revenue 1,444,380 956,519 677,133 |
Schedule of net revenue by industry vertical | The following table sets forth the net revenue by industry vertical for the periods indicated: . December 31, 2021 December 31, 2020 Dec ember 31 20 19 By Industry Vertical Financial services 487,177 324,118 231,813 Food and beverages 340,709 244,590 116,911 Pharmaceuticals and cosmetics 206,375 134,763 85,410 Technology, media, and telecom 169,311 81,961 92,113 Retail and manufacturing 93,871 83,046 65,130 Education and services 64,336 41,323 21,042 Others 82,600 46,718 64,714 Total net revenue 1,444,380 956,519 677,133 |
Schedule of the nature and timing of performance obligations in contracts with customers, including the revenue recognition policies listed in the main types of services | The table below provides information on the nature and timing of performance obligations in contracts with customers, including the revenue recognition policies listed in the main types of services: Type of service Nature and timing of performance obligations Revenue recognition in accordance with IFRS 15 Services provision: The Group has determined that the customer controls all work in progress as the services are provided. This is because, according to these contracts, services are provided according to the client’s specifications and, if a contract is terminated by the client, the Group will be entitled to reimbursement of the costs incurred to date, including a reasonable margin. Invoices are issued in accordance with contractual terms and are usually paid on average in 70 days. Unbilled amounts are presented as contract assets. The associated revenue and costs are recognized over time. The progress of the performance obligation is measured based on the hours incurred. Software License Agency The Group acts as an agent in software license agreements between the developer and the customer. Invoices (related to agency fees) are issued in accordance with the contractual terms and are generally paid on average within 45 days. Revenue related to fees |
Schedule of contract assets | The balances from contract assets are shown and segregated in the statement of financial position as follows: . December 31, 2021 December 31, 2020 Local market 80,107 35,364 Foreign market 55,194 15,936 (-) Expected credit losses from contract assets (913 ) (675 ) Total 134,388 50,625 |
Schedule of the movement of expected credit losses of contract assets | The movement of expected credit losses of contract assets , is as follows: Balance as of January 1, 2020 (805 ) Reversal 218 Effect of movements in exchange rates (88 ) Balance as of December 31, 2020 (675 ) (Provision) (217 ) Effect of movements in exchange rates (21 ) Balance as of December 31, 2021 (913 ) |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature | |
Schedule of information on the nature of expenses recognized in the consolidated statement of profit or loss | Information on the nature of expenses recognized in the consolidated statement of profit or loss is presented below : . December 31, 2021 December 31, 2020 December 31, 2019 Employee expenses (1,010,989 ) (628,699 ) (453,872 ) Third-party services and other inputs ( 65,023 ) (55,660 ) (36,179 ) Short-term leases (5,922 ) (4,669 ) (4,165 ) Travel expenses ( 4,156 ) (8,656 ) (25,891 ) Depreciation and amortization (a) (48,354 ) (29,882 ) (25,577 ) Stock options (b) (note 21 ) ( 2,531 ) (934 ) (3,199 ) Consulting (c) (9,177 ) (446 ) (858 ) Expected credit loss ( 497 ) (196 ) (1,091 ) Impairment of intangible assets (note 14) (21,895 ) - - Surplus of indemnity - 18 (14,891 ) Other costs and expenses (31,230 ) (19,151 ) (19,701 ) Total (1,199,774 ) (748,275 ) (585,434 ) Disclosed as: Costs of services provided ( 935,732 ) (600,866 ) (448,979 ) Selling expenses (89,654 ) (65,093 ) (44,802 ) General and administrative expenses ( 151,681 ) (81,161 ) (81,197 ) Research and technological innovation expenses (4 ) (3,462 ) (12,093 ) Impairment loss on trade receivables and contract assets ( 497 ) (196 ) (1,091 ) Other income (expenses) net (22,206 ) 2,503 2,728 Total (1,199,774 ) (748,275 ) (585,434 ) |
Schedule of other income (expenses), net | . December 31, 2021 December 31, 2020 December 31, 2019 Costs attributable to secondary offer (2,220 ) - - Impairment of intangible assets (note 14) (21,895 ) - - Government grant 2,481 1,571 3 Other (572 ) 932 2,725 Total (22,206 ) 2,503 2,728 |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net finance costs | |
Schedule of net finance costs | . December 31, 2021 December 31, 2020 December 31, 2019 Finance income: Income from financial investments 4,321 2,626 2,372 Foreign-exchange gain 46,302 28,135 12,489 Gains on derivatives 18,585 16,652 8,775 Interest received 99 170 43 Other finance income 509 225 265 69,816 47,808 23,944 Finance costs: Exchange variation loss (49,237 ) (20,080 ) (11,254 ) Loss on derivatives (18,112 ) (31,575 ) (8,802 ) Interest and charges on loans and leases (note 16) (29,729 ) (10,304 ) (8,063 ) Bank guarantee expenses (17 ) (17 ) (263 ) Commissions and brokerage (2,598 ) - - Negative monetary variation (3,092 ) - - Other finance costs (1,263 ) (1,285 ) (1,473 ) (104,048 ) (63,261 ) (29,855 ) Net finance costs (34,232 ) (15,453 ) (5,911 ) |
Income tax and social contrib_2
Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and social contribution | |
Schedule of income tax and social security contribution recognized in profit or loss | Income tax and social security contribution recognized in profit or loss for the year are shown as follows: . December 31, 2021 December 31, 2020 December 31, 2019 Current income tax and social security contribution (95,375 ) (66,912 ) (39,457 ) Deferred income tax 10,958 1,775 10,238 Income tax and social contributions (84,417 ) (65,137 ) (29,219 ) |
Schedule of reconciliation of the effective rate with the average nominal rate | The reconciliation of the effective rate with the average nominal rate is shown as follows: . December 31, 2021 December 31, 2020 December 31, 2019 Profit before income tax and social contribution 210,374 192,791 85,788 Combined income tax and social contribution rate 34 % 34 % 34 % Tax using the Company’s domestic tax rate (71,527 ) (65,549 ) (29,168 ) Interest on own capital 2,138 1,469 - Expected income tax expense and interest on own capital (69,389 ) (64,080 ) (29,168 ) Tax incentives - 219 346 Impairment loss (intangible) (6,864 ) - - Other permanent exclusions (additions) (8,164 ) (1,276 ) (397 ) Income Tax and Social Contribution Expenses (84,417 ) (65,137 ) (29,219 ) Current (95,375 ) (66,912 ) (39,457 ) Deferred 10,958 1,775 10,238 (84,417 ) (65,137 ) (29,219 ) Effective rate 40 % 34 % 34 % |
Schedule of income tax recognized directly in shareholders' equity | Amounts recognized directly in shareholders' equity . December 31, 2021 December 31, 2020 December 31, 2019 Cancellation of the stock option plan - - 6,244 Stock option plan compensation (147 ) 45 - Total (147 ) 45 6,244 Current - 8,698 (2,556 ) Deferred (147 ) (8,653 ) 8,800 Total taxes recognized in equity (147 ) 45 6,244 |
Schedule of reconciliation of deferred tax assets and deferred tax liabilities | The composition and changes in the deferred income tax and social contribution are described below: December 31, 2021 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 2,038 - (437 ) - 76 1,677 1,739 (62 ) Salaries and welfare charges 18,447 - 6,354 - 968 25,768 25,768 - Lease 2,168 - (41 ) - (5 ) 2,122 2,122 - Other items (8,629 ) - 2,630 6,913 (307 ) 607 2,440 (1,833 ) Indemnity on stock options plan 214 (147 ) (67 ) - - - - - Tax loss carry amount 914 - 2,519 (1,618 ) - 1,815 3,228 (1,413 ) Net tax liability (assets) 15,152 (147 ) 10,958 5,294 732 31,989 35,297 (3,308 ) December 31, 2020 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 1,597 - 107 - 334 2,038 2,075 (37 ) Salaries and welfare charges 10,122 - 7,236 - 1,090 18,447 18,447 - Lease 1,583 - 486 - 98 2,168 2,168 - Other items (2,435 ) - (1,119 ) (4,956 ) (119 ) (8,629 ) 66 (8,695 ) Indemnity on stock options plan 13,304 (8,653 ) (4,757 ) - 321 214 214 - Tax loss carry amount 806 - (178 ) - 286 914 914 - Net tax liability (assets) 24,977 (8,653 ) 1,775 (4,956 ) 2,010 15,152 23,884 (8,732 ) December 31, 2019 . Net balance on January 1 Recognition in equity Recognition in profit or loss Other Exchange variation effect Net amount Deferred tax asset Deferred tax liabilities Provisions 1,653 - 350 - (406 ) 1,597 1,597 - Salaries and welfare charges 6,643 - 3,447 - 32 10,122 10,122 - Lease - - 1,589 - (7 ) 1,583 1,583 - Other items (1,335 ) - (493 ) (611 ) 4 (2,435 ) 261 (2,696 ) Indemnity on stock options plan - 8,800 4,527 - (23 ) 13,304 13,304 - Tax loss carry amount - - 818 - (11 ) 806 806 - Net tax liability (assets) 6,961 8,800 10,238 (611 ) (411 ) 24,977 27,673 (2,696 ) |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | |
Schedule of earnings per share | December 31, 2021 December 31, 2020 December 31, 2019 Numerator Profit attributable to holders of common shares 125,957 127,654 56,534 Denominator Weighted average number of basic shares held by shareholders 121,777,128 119,960,383 122,312,323 Earnings per share – basic 1.03 1.06 0.46 Numerator Profit attributable to holders of common shares 125,957 127,654 56,534 Denominator Weighted average number of diluted shares held by shareholders 125,155,798 123,287,891 122,375,414 Net earnings per share – diluted 1.01 1.04 0.46 |
Schedule of weighted average number of common shares | Weighted average number of common shares December 31, 2021 December 31, 2020 December 31, 2019 Weighted average common shares (basic) 121,777,128 119,960,383 122,312,323 Effect of stock options when exercised 3,378,670 3,327,508 63,091 Weighted average number of common shares 125,155,798 123,287,891 122,375,414 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments and risk management | |
Schedule of carrying amounts and fair values of financial assets and financial liabilities | The following table shows the carrying amounts and fair values of financial assets and financial liabilities, segregated by category: December 31, 2021 Amortized cost Assets/liabilities measured at FVTPL Total Financial assets Cash and cash equivalents 135,727 - 135,727 Financial investments 798,786 - 798,786 Trade receivables 340,519 - 340,519 Contract assets 134,388 - 134,388 Derivatives - 896 896 Other assets 32,949 - 32,949 1,442,369 896 1,443,265 Financial liabilities Suppliers and other payables 33,566 - 33,566 Loans and borrowings 788,709 - 788,709 Lease liabilities 81,888 - 81,888 Accounts payable for business combination 85,726 - 85,726 Derivatives - 535 535 Contract liabilities 13,722 - 13,722 Other liabilities 15,329 - 15,329 1,018,940 535 1,019,475 December 31, 2020 Amortized cost Assets/liabilities measured at FVTPL Total Financial assets Cash and cash equivalents 162,827 - 162,827 Trade receivables 196,256 - 196,256 Contract assets 50,625 - 50,625 Derivatives - 8,837 8,837 Other assets 15,368 - 15,368 425,076 8,837 433,913 Financial liabilities Suppliers and other payables 15,312 - 15,312 Loans and borrowings 89,230 - 89,230 Lease liabilities 75,228 - 75,228 Derivatives - 5,392 5,392 Contract liabilities 9,987 - 9,987 Other liabilities 8,856 - 8,856 198,613 5,392 204,005 |
Schedule of foreign currency risk | December, 2021 December, 2020 USD Other USD Other Financial investments 798,786 - - - Suppliers and other payables (8,763 ) (722 ) (3,057 ) (540 ) Trade receivables 233,724 7,273 160,411 3,855 Loans and borrowings (266,561 ) - (37,116 ) - Lease liabilities (32,159 ) (962 ) (30,307 ) - Derivatives 361 - (1,321 ) - Net exposure 725,388 5,589 88,610 3,315 |
Schedule of sensitivity analysis of non-derivative financial instruments | Risk Exposure in R$ Probable scenario (i) Adverse Scenario (ii) Remote Scenario (iii) Short-term financial investments Interest rate increase - CDI 66,007 10.67 % 11.39 % 12.11 % 7,043 7,518 7,993 Loans and borrowings Interest rate increase - CDI (609,374 ) 10.67 % 11.39 % 12.11 % (65,020 ) (69,408 ) (73,795 ) Loans and borrowings Interest rate increase - Libor (179,333 ) 0.27 % 0.54 % 0.81 % (484 ) (968 ) (1,452 ) Effect on earnings (reduction) (8,367 ) (12,763 ) (17,160 ) Sensitivity analysis for exchange rate risk Risk Probable scenario (i) Adverse Scenario (ii) Remote Scenario (iii) Net exchange variation on transactions Exchange variation in the year Foreign currency appreciation - USD 5.30 5.50 5.70 Effect on earnings (increase) (5,718 ) (5,933 ) (6,378 ) 303 88 (357 ) |
Schedule of maximum credit risk exposure | December 31, 2021 December 31, 2020 Hedge financial instruments (current and non-current) 896 8,837 Cash and cash equivalents 135,727 162,827 Financial investments 798,786 - Trade receivables 340,519 196,256 Contract assets 134,388 50,625 Other receivables (current and non-current) 32,949 15,368 |
Schedule of exposure to credit risk for trade receivables, contract assets and other receivables by geographic region | At 31 December 2021, the exposure to credit risk for trade receivables, contract assets and other receivables by geographic region was as follows: December 31, 2021 December 31, 2020 NAE (North America and Europe) 297,430 180,522 North America 287,992 179,943 Europe 9,438 579 LATAM (Latin America) 202,528 75,577 APJ (Asia, Pacific and Japan) 7,917 6,150 Total 507,875 262,249 |
Schedule of remaining contractual maturities of financial liabilities | The following are the remaining contractual maturities of financial liabilities on the reporting date. The amounts are gross and undiscounted, including contractual interest payments and excluding the impact of netting agreements: 2021 Carrying amount Cash contractual cash flow 6 months or less 6- 12 months 1-2 years 2-5 Years Non-derivative financial liabilities Trade payables 33,566 33,566 33,566 - - - Loans and borrowings 788,709 974,942 136,161 88,045 171,022 579,714 Lease liabilities 81,888 87,662 12,435 12,251 22,284 40,682 Accounts payable for business combination 85,726 85,726 1,064 47,860 12,179 24,623 Contract liabilities 13,722 13,722 13,722 - - - Other payables (current and non-current) 15,329 15,329 15,329 - - - Derivatives 535 535 535 1,019,475 1,211,482 212,812 148,156 205,485 645,029 2020 Carrying amount Contractual cash flow 6 months or less 6-12 months 1-2 years 2-6 years Non-derivative financial liabilities Trade payables 15,312 15,312 15,312 - - - Loans and borrowings 89,230 111,779 78,898 7,313 23,901 1,667 Lease liabilities 75,228 93,242 11,393 10,470 19,053 52,326 Contract liabilities 9,987 9,987 9,987 - - - Other payables (current and non-current) 8,856 8,856 8,856 - - - Derivatives 5,392 5,392 1,920 3,472 204,005 244,568 126,366 21,255 42,954 53,993 |
Schedule of financing lines and bank credit lines | Financing Lines Guaranteed unsecured account, reviewed annually, and paid upon request: December 30, 2021 December 31, 2020 Used - - Not used - 2,200 - 2,200 Bank credit lines December 30, 2021 December 31, 2020 Used 11,161 89,197 Not used 47,434 61,521 58,595 150,718 |
Schedule of agreements for financial derivatives (NDFs) | As of December 31, 2021 , the Group had the following agreements for financial derivatives (NDFs): 2021 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value February 25, 2022 (560 ) 5.6220 (3,148 ) 5.3459 (17 ) Total (17 ) 2020 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value June 15, 2021 (3,100 ) 5.4928 (17,064 ) 5.4763 968 April 15, 2021 (800 ) 5.6345 (4,508 ) 5.1909 353 Total 1,321 |
Schedule of composition of the balances involving options to buy and sell currencies | The composition of the balances involving options to buy and sell currencies is as follows: 2021 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value 01/21/2021 - 01/17/2022 875 Put option 4,900 5.8257 (349 ) 02/25/2021 - 02/25/2022 490 Put option 2,909 5.6490 (170) (519 ) 01/21/2021 - 01/17/2022 875 Call option (4,900 ) 5.5563 298 02/25/2021 - 02/25/2022 490 Call option (2,909 ) 5.4690 196 494 (25 ) 2020 Maturity Nominal value (USD) Contracted rate Amount in R$ Market rate Fair value 15/01 - 15/06/2021 1,800 Call option 587 5.6770 (12 ) 31/05 - 15/12/2021 2,800 Call option 786 5.5656 (569 ) 15/04 - 30/11/2021 6,900 Call option 2,161 5.5116 (1,277 ) (1,858 ) 15/01 - 15/06/2021 1,800 Put option (587 ) 5.4800 512 31/05 - 15/12/2021 2,800 Put option (786 ) 5.2425 862 15/04 - 30/11/2021 6,900 Put option (2,161 ) 5.3388 2,608 3,982 2,124 |
Schedule of interest rate profile of interest-bearing financial instruments | The interest rate profile of the Group’s interest-bea r ing financial instruments , as reported to the Group’s Management, is as follows : 2021 Maturity Notional (USD) Amount in R$ Floating rate receivable Fixed rate payable Fair value 07/16/2026 30,000 152,100 3-month LIBOR 3,07% 403 403 |
Schedule of financial instruments by type of measurement of fair value | Carrying amount Fair valu e December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Level 2 Derivatives: Non-Deliverable Forward - NDF (17 ) 1,321 (17 ) 1,321 Call and put option term 403 2,124 403 2,124 Interest rate swap (25 ) - (25 ) - 361 3,445 361 3,445 Non-derivatives Lease liabilities (81,888 ) (75,228 ) (87,662 ) (93,242 ) Loans and borrowings (788,709 ) (89,230 ) (974,942 ) (111,779 ) (870,597 ) (164,458 ) (1,062,604 ) (205,021 ) (870,236 ) (161,013 ) (1,062,243 ) (201,576 ) |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operating segments | |
Schedule of net revenues by geographic region | The table below summarizes net revenues by geographic region: . December 31, 2021 December 31, 2020 December 31, 2019 NAE (North America and Europe) 699,878 471,763 309,365 North America 684,558 451,999 284,321 Europe 15,320 19,764 25,044 LATAM (Latin America) 694,334 435,987 332,692 APJ (Asia, Pacific and Japan) 50,168 48,769 35,106 Total (Note 23) 1,444,380 956,519 677,133 |
Schedule of net revenue contributed by the top client, and top ten clients | The following table sets forth net revenue contributed by the top client, and top ten clients for the periods indicated: . December 31, 2021 December 31, 2020 December 31, 2019 Top client 283,311 190,599 97,248 Top 10 clients 913,890 644,722 417,547 |
Schedule of non-current assets, except deferred taxes, based on assets geographic location | The table below summarizes non-current assets, except deferred taxes, based on assets geographic location : . December 31, 2021 December 31, 2020 December 31, 2019 Brazil 837,362 97,887 93,016 Abroad: United States of America 38,417 36,010 32,612 Japan 176 398 1,055 China 2,239 776 545 Canada 284 196 - Portugal 387 - - Other countries 82 111 2 Total 878,947 135,378 127,230 |
Operational context (Details -
Operational context (Details - Textuals) $ / shares in Units, R$ in Thousands, $ in Thousands | Nov. 15, 2021BRL (R$) | Nov. 15, 2021USD ($) | Jul. 31, 2019BRL (R$) | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2019BRL (R$) | Dec. 31, 2021$ / sharesshares | Nov. 10, 2021$ / sharesshares | Apr. 30, 2021BRL (R$) |
Operational context | |||||||||
Number of shares issued through initial public offering | shares | 121,086,781 | 132,197,896 | |||||||
Transaction cost of offering | R$ | R$ 55874 | R$ 0 | R$ 0 | ||||||
Sensedia S.A. | |||||||||
Operational context | |||||||||
Percentage of the total subsidiary’s share capital | 64.38% | ||||||||
Book value of spin-off related transaction | R$ | R$ 4630 | ||||||||
CI&T Brazil | Hoshin Empreendimentos S.A. | |||||||||
Operational context | |||||||||
Book value of merger related transaction | R$ | R$ 108 | ||||||||
Class A common shares | |||||||||
Operational context | |||||||||
Number of shares issued through initial public offering | shares | 15,000,000 | 15,000,000 | |||||||
Number of shares issued by reporting entity | shares | 11,111,111 | ||||||||
Number of shares issued by certain shareholders | shares | 3,888,889 | ||||||||
Subscription price per share | $ / shares | $ 15 | $ 15 | |||||||
Subscription amount through initial public offering | $ | $ 225,000 | ||||||||
Proceeds from issuing shares | R$ 860993 | $ 156,667 | |||||||
Transaction cost of offering | R$ | R$ 66876 |
List of direct and indirect s_3
List of direct and indirect subsidiaries (Details) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
CI&T Delaware LLC | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [1] | United States | ||
CI&T Delaware LLC | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [1] | 100.00% | 0.00% | 0.00% |
CI&T Delaware LLC | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [1] | 0.00% | 0.00% | 0.00% |
CI&T Software S.A. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | Brazil | |||
CI&T Software S.A. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 0.00% | 0.00% | |
CI&T Software S.A. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 0.00% | 0.00% | |
CI&T Inc. (“CI&T US”) | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | United States | |||
CI&T Inc. (“CI&T US”) | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 100.00% | 100.00% | |
CI&T Inc. (“CI&T US”) | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 0.00% | 0.00% | |
CI&T Software Inc. (“CI&T Canada”) | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | Canada | |||
CI&T Software Inc. (“CI&T Canada”) | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 0.00% | 0.00% | |
CI&T Software Inc. (“CI&T Canada”) | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 100.00% | 100.00% | |
CI&T UK Limited. (“CI&T UK”) | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | United Kingdom | |||
CI&T UK Limited. (“CI&T UK”) | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 0.00% | 0.00% | |
CI&T UK Limited. (“CI&T UK”) | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 100.00% | 100.00% | |
CI&T Argentina S/A | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | Argentina | |||
CI&T Argentina S/A | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 0.00% | 0.00% | |
CI&T Argentina S/A | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 100.00% | 100.00% | |
CI&T Japan, Inc. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | Japan | |||
CI&T Japan, Inc. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 100.00% | 100.00% | |
CI&T Japan, Inc. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 0.00% | 0.00% | |
CI&T China Inc. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | China | |||
CI&T China Inc. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 0.00% | 0.00% | 0.00% | |
CI&T China Inc. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | 100.00% | 100.00% | 100.00% | |
CI&T IOT | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [2] | Brazil | ||
CI&T IOT | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [2] | 0.00% | 100.00% | 100.00% |
CI&T IOT | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [2] | 0.00% | 0.00% | 0.00% |
CI&T Portugal Unipessoal Lda. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [3] | Portugal | ||
CI&T Portugal Unipessoal Lda. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [3] | 0.00% | 100.00% | 0.00% |
CI&T Portugal Unipessoal Lda. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [3] | 100.00% | 0.00% | 0.00% |
CI&T Australia PTY Ltd. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [4] | Australia | ||
CI&T Australia PTY Ltd. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [4] | 0.00% | 100.00% | 0.00% |
CI&T Australia PTY Ltd. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [4] | 100.00% | 0.00% | 0.00% |
Dextra Inc. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [5] | United States | ||
Dextra Inc. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [5] | 0.00% | 0.00% | 0.00% |
Dextra Inc. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [5] | 100.00% | 0.00% | 0.00% |
CINQ Inc. | ||||
List of direct and indirect subsidiaries | ||||
Country of Origin | [5] | United States | ||
CINQ Inc. | Direct | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [5] | 0.00% | 0.00% | 0.00% |
CINQ Inc. | Indirect | ||||
List of direct and indirect subsidiaries | ||||
% holding of subsidiary | [5] | 100.00% | 0.00% | 0.00% |
[1] | Refers to note 1.a.iii. | |||
[2] | In July 2019, the subsidiary CI&T IOT Comércio de Hardware e Software Ltda. started its operations. The subsidiary’s main activity is the sale of technology devices and software on environment management platforms for efficient use of spaces. In A pril 2021 the partial spin-off on the CI&T IOT investment was approved with transfer of its net equity to the CI&T Brazil’s shareholders. | |||
[3] | In June 2020, the subsidiary CI&T Portugal LDA ("CI&T Portugal") started operations in the city of Lisbon to meet the strategy of global expansion and strengthen the presence in the European market, acting with the same corporate purpose as the Group. | |||
[4] | In October 2020, the subsidiary CI&T Australia PTY LTD was incorporated in the city of Brisbane, acting with the same corporate purpose as the Group. | |||
[5] | In August 2021, the CI&T Brazil completed the acquisition of 100% of the shareholding control of Dextra Investimentos S.A. and its subsidiaries (see note 9). |
List of direct and indirect s_4
List of direct and indirect subsidiaries (Details 1 - Textuals) | Aug. 31, 2021 | Jun. 26, 2021 |
CI&T Brazil | Dextra Group | ||
List of direct and indirect subsidiaries | ||
Percentage of voting equity interests acquired | 100.00% | 100.00% |
Significant accounting polici_4
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Network software | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 5 years |
Customer relationship | Bottom of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 6 years |
Customer relationship | Top of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 8 years |
Non-compete agreement | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 5 years |
Brands | Bottom of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 1 year |
Brands | Top of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 2 years |
Internally developed | Software | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of intangible assets | 3 years |
IT equipment | Bottom of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 2 years |
IT equipment | Top of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Furniture and fixtures | Bottom of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 7 years |
Furniture and fixtures | Top of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Vehicles | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Leasehold improvements | Bottom of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 1 year |
Leasehold improvements | Top of range | |
Disclosure of significant accounting policies [line items] | |
Estimated useful lives of property, plant and equipment | 8 years |
Significant accounting polici_5
Significant accounting policies (Details 1 - Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 10, 2021 | Dec. 31, 2020 | |
Disclosure of significant accounting policies [line items] | |||
Share capital | R$ 36 | R$ 68968 | |
Number of shares issued | 132,197,896 | 121,086,781 | |
Minimum period of overdue for considering financial assets to be in default | 360 days | ||
Office lease agreements | |||
Disclosure of significant accounting policies [line items] | |||
Additional period of lease term for determine right-of-use assets amounts | 5 years | ||
Class A common shares | |||
Disclosure of significant accounting policies [line items] | |||
Number of shares issued | 15,000,000 | 15,000,000 | |
Class B common shares | |||
Disclosure of significant accounting policies [line items] | |||
Number of shares issued | 117,197,896 |
Business combination (Details)
Business combination (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 02, 2021 | Aug. 10, 2021 |
Consideration transferred | |||
Accounts payable for business combination (note 18) | R$ 85726 | R$ 133573 | |
Accounts payable | 48,817 | ||
Retained amount | 30,000 | ||
Other | 6,909 | ||
CI&T Brazil | Dextra Group | |||
Consideration transferred | |||
Cash | 700,938 | R$ 50938 | R$ 650000 |
Accounts payable for business combination (note 18) | 82,635 | ||
Accounts payable | 45,726 | ||
Retained amount | 30,000 | ||
Other | 6,909 | ||
Total consideration transferred | R$ 783573 |
Business combination (Details 1
Business combination (Details 1) R$ in Thousands | Dec. 31, 2021BRL (R$) | |
Non-current | ||
Gross contractual amount receivable for acquired trade receivables | R$ 56854 | |
Gross contractual amount receivable which is not expected to be collected for acquired trade receivables | 541 | |
CI&T Brazil | Dextra Group | ||
Current | ||
Cash and cash equivalents | 8,216 | |
Trade receivables | 56,313 | [1] |
Recoverable taxes | 1,668 | |
Other assets | 2,386 | |
Current assets | 68,583 | |
Non-current | ||
Recoverable taxes | 3,932 | |
Property, plant and equipment (note 13) | 9,149 | |
Intangible assets (note 14) | 148,523 | |
Right-of-use assets (note 15) | 5,414 | |
Non-current assets | 167,018 | |
Total assets | 235,601 | |
Current | ||
Suppliers | 5,627 | |
Lease liabilities (note 15) | 3,105 | |
Salaries and welfare charges | 23,436 | |
Tax liabilities | 10,569 | |
Contract liabilities | 1,933 | |
Other liabilities | 26 | |
Current liabilities | 44,696 | |
Non-current | ||
Other liabilities | 18 | |
Lease liabilities (note 15) | 3,035 | |
Non-current liabilities | 3,053 | |
Total liabilities | 47,749 | |
Total identifiable net assets acquired | R$ 187852 | |
[1] | Gross contractual amount receivable is R$ 56,854 and R$ 541 is not expected to be collected. |
Business combination (Details 2
Business combination (Details 2) - CI&T Brazil - Dextra Group R$ in Thousands | Dec. 31, 2021BRL (R$) |
Business combinations | |
Total intangible assets at fair value (note 14) | R$ 148523 |
Network software (note 14) | |
Business combinations | |
Total intangible assets at fair value (note 14) | 191 |
Customer relationship | |
Business combinations | |
Total intangible assets at fair value (note 14) | 88,961 |
Non-compete agreement | |
Business combinations | |
Total intangible assets at fair value (note 14) | 16,257 |
Brands | |
Business combinations | |
Total intangible assets at fair value (note 14) | 20,501 |
Internally developed | Software (note 14) | |
Business combinations | |
Total intangible assets at fair value (note 14) | R$ 22613 |
Business combination (Details 3
Business combination (Details 3) - CI&T Brazil - Dextra Group R$ in Thousands | Dec. 31, 2021BRL (R$) |
Goodwill | |
Consideration transferred | R$ 783573 |
Fair value of identifiable net assets | (187,852) |
Goodwill | R$ 595721 |
Business combination (Details 4
Business combination (Details 4 - Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 02, 2021 | Aug. 31, 2021 | Aug. 10, 2021 | Jun. 26, 2021 | |
Business combinations | |||||||
Retained amount for materialized contingencies related to a portion of the remaining balance payable on fifth anniversary of closing date of the acquisition | R$ 30000 | ||||||
Acquisition-related cost | R$ 6957 | R$ 446 | R$ 858 | ||||
Non-compete agreement (note 13) | |||||||
Business combinations | |||||||
Useful life of intangible assets | 5 years | ||||||
CI&T Brazil | Dextra Group | |||||||
Business combinations | |||||||
Percentage of voting equity interests acquired | 100.00% | 100.00% | |||||
Purchase price of acquisition | R$ 800000 | ||||||
Cash paid | R$ 700938 | R$ 50938 | R$ 650000 | ||||
Business Combination, decrease in purchase price based on agreement | 16,427 | ||||||
Total consideration transferred | 783,573 | ||||||
Retained amount for materialized contingencies related to a portion of the remaining balance payable on fifth anniversary of closing date of the acquisition | 30,000 | ||||||
Contribution in total revenue | 172,959 | ||||||
Contribution in profit | 31,943 | ||||||
Consolidated revenue if the acquisition had occurred on January 1, 2021 | 1,617,339 | ||||||
Consolidated profit if the acquisition had occurred on January 1, 2021 | 129,044 | ||||||
Acquisition-related cost | R$ 2109 | ||||||
CI&T Brazil | Dextra Group | Brands (note 13) | |||||||
Business combinations | |||||||
Useful life of intangible assets | 1 year 4 months 24 days | ||||||
CI&T Brazil | Dextra Group | Non-compete agreement (note 13) | |||||||
Business combinations | |||||||
Useful life of intangible assets | 5 years | ||||||
CI&T Brazil | Dextra Group | Customer relationship (note 13) | |||||||
Business combinations | |||||||
Useful life of intangible assets | 7 years 4 months 24 days |
Cash and cash equivalents and_3
Cash and cash equivalents and financial investments (Details) R$ in Thousands, $ in Thousands | Dec. 31, 2021BRL (R$) | Dec. 31, 2021USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Cash and cash equivalents and financial investments | |||||
Cash and cash equivalents | R$ 69720 | R$ 59640 | |||
Short-term financial investments | 66,007 | 103,187 | |||
Total | 135,727 | 162,827 | R$ 79500 | R$ 77079 | |
Financial investments | R$ 798786 | $ 143,139 | R$ 0 |
Cash and cash equivalents and_4
Cash and cash equivalents and financial investments (Details 1 - Textuals) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2021USD ($) | |
Cash and cash equivalents | |||
Financial investments | R$ 798786 | R$ 0 | $ 143,139 |
Interest rate of deposits | 5.00% | ||
Interbank Deposit Certificate (CDI) | Bottom of range | |||
Cash and cash equivalents | |||
Percentage of interest rate | 100.00% | 97.00% | |
Interbank Deposit Certificate (CDI) | Top of range | |||
Cash and cash equivalents | |||
Percentage of interest rate | 103.00% | 101.00% |
Trade receivables (Details)
Trade receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade receivables | ||||
Trade receivables, net | R$ 340519 | R$ 196256 | ||
Gross amount | ||||
Trade receivables | ||||
Trade receivables, net | 341,578 | 196,948 | ||
Trade receivables | ||||
Trade receivables | ||||
(-) Expected credit losses | (1,059) | (692) | R$ 246 | R$ 352 |
Brazil market | Gross amount | ||||
Trade receivables | ||||
Trade receivables, net | 100,581 | 32,275 | ||
Other markets | Gross amount | ||||
Trade receivables | ||||
Trade receivables, net | R$ 240997 | R$ 164673 |
Trade receivables (Details 1)
Trade receivables (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of trade receivables by maturity date | |||
Total | R$ 340519 | R$ 196256 | |
Gross amount | |||
Disclosure of trade receivables by maturity date | |||
Total | 341,578 | 196,948 | |
Not due | Gross amount | |||
Disclosure of trade receivables by maturity date | |||
Total | 319,450 | 167,939 | |
from 1 to 60 days | Gross amount | |||
Disclosure of trade receivables by maturity date | |||
Total | [1] | 20,020 | 28,012 |
61 to 360 days | Gross amount | |||
Disclosure of trade receivables by maturity date | |||
Total | 1,564 | 939 | |
Over 360 days | Gross amount | |||
Disclosure of trade receivables by maturity date | |||
Total | R$ 544 | R$ 58 | |
[1] | As of December 3 1 , 2021 s overdue from 1 to 60 R$ 20,020 (R$ 28,012 as of December 31, 2020), refers to a series of individual clients. The Group considers these extensions and delays as expected in its credit risk analysis. |
Trade receivables (Details 2)
Trade receivables (Details 2) - Trade receivables - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement of impairment loss on trade receivables | |||
Balance at beginning of period | R$ 692 | R$ 246 | R$ 352 |
Provision | (3,106) | (1,751) | (430) |
Reversal | 2,826 | 1,337 | 378 |
Partial investment spin-off | 160 | ||
Exchange variation | (87) | (32) | (2) |
Balance at end of period | R$ 1059 | R$ 692 | R$ 246 |
Trade receivables (Details 3 -
Trade receivables (Details 3 - Textuals) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of trade receivables by maturity date | ||
Trade receivables | R$ 340519 | R$ 196256 |
Gross amount | ||
Disclosure of trade receivables by maturity date | ||
Trade receivables | 341,578 | 196,948 |
from 1 to 60 days | Gross amount | ||
Disclosure of trade receivables by maturity date | ||
Trade receivables | R$ 20020 | R$ 28012 |
Other assets (Details)
Other assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Other assets. | |||
Prepaid expenses | [1] | R$ 29743 | R$ 13221 |
Rental security deposits | 2,471 | 1,402 | |
Suppliers’ advances | 162 | 673 | |
Other | 592 | 72 | |
Total | 32,968 | 15,368 | |
Current | 29,994 | 12,874 | |
Non-current | 2,974 | 2,494 | |
Total | R$ 32968 | R$ 15368 | |
[1] | Prepaid expenses are mostly comprised of prepaid insurance, mainly related to directors and officers liability insurance, consulting, software support prepayments. |
Property, plant and equipment_2
Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | |||
Total | R$ 57721 | R$ 38771 | |
IT equipment | |||
Property, plant and equipment | |||
Total | 35,230 | 15,407 | |
Furniture and fixtures | |||
Property, plant and equipment | |||
Total | 6,283 | 6,364 | |
Vehicles | |||
Property, plant and equipment | |||
Total | 0 | 27 | |
Hardware devices | |||
Property, plant and equipment | |||
Total | 0 | 291 | |
Leasehold improvements | |||
Property, plant and equipment | |||
Total | [1] | 16,051 | 16,460 |
Property, plant and equipment in progress | |||
Property, plant and equipment | |||
Total | R$ 157 | R$ 222 | |
[1] | Improvements are depreciated on a straight-line basis based over the duration of the lease agreement. |
Property, plant and equipment_3
Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, plant and equipment | ||||
Beginning balance | R$ 38771 | |||
Ending balance | 57,721 | R$ 38771 | ||
Balance as of December 31 | 57,721 | 38,771 | ||
Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 76,880 | 58,570 | ||
Exchange rate changes | 974 | 3,269 | ||
Spin-off | (1,070) | |||
Addition due to business combination | 9,149 | |||
Additions | 25,742 | 19,626 | ||
Disposals | 3,094 | 4,585 | ||
Transfers | 0 | 0 | ||
Ending balance | 108,581 | 76,880 | R$ 58570 | |
Balance as of December 31 | 108,581 | 76,880 | 58,570 | |
Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (38,109) | (30,642) | (27,844) | |
Exchange rate changes | (199) | (954) | (96) | |
Spin-off | 292 | 1,016 | ||
Depreciation additions | (15,073) | (10,493) | (8,342) | |
Disposals | (2,229) | (3,980) | (4,624) | |
Ending balance | (50,860) | (38,109) | (30,642) | |
Balance as of December 31 | (50,860) | (38,109) | (30,642) | |
IT equipment | ||||
Property, plant and equipment | ||||
Beginning balance | 15,407 | |||
Ending balance | 35,230 | 15,407 | ||
Balance as of December 31 | 35,230 | 15,407 | ||
IT equipment | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 34,852 | 24,013 | ||
Exchange rate changes | 386 | 1,285 | ||
Spin-off | (128) | |||
Addition due to business combination | 7,379 | |||
Additions | 22,527 | 11,315 | ||
Disposals | 1,376 | 1,761 | ||
Transfers | 0 | 0 | ||
Ending balance | 63,640 | 34,852 | 24,013 | |
Balance as of December 31 | 63,640 | 34,852 | 24,013 | |
IT equipment | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (19,445) | (15,092) | (15,151) | |
Exchange rate changes | (214) | (565) | (48) | |
Spin-off | 10 | 575 | ||
Depreciation additions | (9,625) | (5,386) | (3,850) | |
Disposals | (864) | (1,598) | (3,382) | |
Ending balance | (28,410) | (19,445) | (15,092) | |
Balance as of December 31 | (28,410) | (19,445) | (15,092) | |
Furniture and fixtures | ||||
Property, plant and equipment | ||||
Beginning balance | 6,364 | |||
Ending balance | 6,283 | 6,364 | ||
Balance as of December 31 | 6,283 | 6,364 | ||
Furniture and fixtures | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 12,941 | 11,903 | ||
Exchange rate changes | 176 | 760 | ||
Spin-off | (4) | |||
Addition due to business combination | 1,018 | |||
Additions | 301 | 1,365 | ||
Disposals | 563 | 1,091 | ||
Transfers | 0 | 4 | ||
Ending balance | 13,869 | 12,941 | 11,903 | |
Balance as of December 31 | 13,869 | 12,941 | 11,903 | |
Furniture and fixtures | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (6,577) | (5,680) | (5,340) | |
Exchange rate changes | (42) | (207) | (22) | |
Spin-off | 2 | 80 | ||
Depreciation additions | (1,451) | (1,616) | (1,486) | |
Disposals | (482) | (926) | (1,088) | |
Ending balance | (7,586) | (6,577) | (5,680) | |
Balance as of December 31 | (7,586) | (6,577) | (5,680) | |
Vehicles | ||||
Property, plant and equipment | ||||
Beginning balance | 27 | |||
Ending balance | 0 | 27 | ||
Balance as of December 31 | 0 | 27 | ||
Vehicles | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 86 | 295 | ||
Exchange rate changes | 0 | 69 | ||
Spin-off | 0 | |||
Addition due to business combination | 0 | |||
Additions | 0 | 0 | ||
Disposals | 86 | 278 | ||
Transfers | 0 | 0 | ||
Ending balance | 0 | 86 | 295 | |
Balance as of December 31 | 0 | 86 | 295 | |
Vehicles | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (59) | (109) | (159) | |
Exchange rate changes | 0 | (28) | (5) | |
Spin-off | 0 | 0 | ||
Depreciation additions | (5) | (50) | (78) | |
Disposals | (64) | (128) | (133) | |
Ending balance | 0 | (59) | (109) | |
Balance as of December 31 | 0 | (59) | (109) | |
Leasehold improvements | ||||
Property, plant and equipment | ||||
Beginning balance | [1] | 16,460 | ||
Ending balance | [1] | 16,051 | 16,460 | |
Balance as of December 31 | [1] | 16,051 | 16,460 | |
Leasehold improvements | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 28,292 | 22,345 | ||
Exchange rate changes | 375 | 1,155 | ||
Spin-off | 0 | |||
Addition due to business combination | 752 | |||
Additions | 1,052 | 461 | ||
Disposals | 909 | 1,352 | ||
Transfers | 1,353 | 5,683 | ||
Ending balance | 30,915 | 28,292 | 22,345 | |
Balance as of December 31 | 30,915 | 28,292 | 22,345 | |
Leasehold improvements | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (11,832) | (9,761) | (7,194) | |
Exchange rate changes | 57 | (154) | (21) | |
Spin-off | 0 | 361 | ||
Depreciation additions | (3,908) | (3,245) | (2,928) | |
Disposals | (819) | (1,328) | (21) | |
Ending balance | (14,864) | (11,832) | (9,761) | |
Balance as of December 31 | (14,864) | (11,832) | (9,761) | |
Property, plant and equipment in progress | ||||
Property, plant and equipment | ||||
Beginning balance | 222 | |||
Ending balance | 157 | 222 | ||
Balance as of December 31 | 157 | 222 | ||
Property, plant and equipment in progress | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 222 | 14 | ||
Exchange rate changes | 37 | 0 | ||
Spin-off | (313) | |||
Addition due to business combination | 0 | |||
Additions | 1,724 | 5,998 | ||
Disposals | 160 | 103 | ||
Transfers | (1,353) | (5,687) | ||
Ending balance | 157 | 222 | 14 | |
Balance as of December 31 | 157 | 222 | 14 | |
Property, plant and equipment in progress | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Spin-off | 0 | 0 | ||
Depreciation additions | 0 | 0 | 0 | |
Disposals | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | |
Balance as of December 31 | 0 | 0 | 0 | |
Hardware devices | ||||
Property, plant and equipment | ||||
Beginning balance | 291 | |||
Ending balance | 0 | 291 | ||
Balance as of December 31 | 0 | 291 | ||
Hardware devices | Cost | ||||
Property, plant and equipment | ||||
Beginning balance | 487 | 0 | ||
Exchange rate changes | 0 | 0 | ||
Spin-off | (625) | |||
Addition due to business combination | 0 | |||
Additions | 138 | 487 | ||
Disposals | 0 | 0 | ||
Transfers | 0 | 0 | ||
Ending balance | 0 | 487 | 0 | |
Balance as of December 31 | 0 | 487 | 0 | |
Hardware devices | Depreciation | ||||
Property, plant and equipment | ||||
Beginning balance | (196) | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Spin-off | 280 | 0 | ||
Depreciation additions | (84) | (196) | 0 | |
Disposals | 0 | 0 | 0 | |
Ending balance | 0 | (196) | 0 | |
Balance as of December 31 | R$ 0 | R$ 196 | R$ 0 | |
[1] | Improvements are depreciated on a straight-line basis based over the duration of the lease agreement. |
Intangible assets (Details)
Intangible assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets | |||
Subtotal | R$ 119334 | R$ 3596 | |
Goodwill | [1] | 619,469 | 14,570 |
Total | 738,803 | 18,166 | |
Network software | |||
Intangible assets | |||
Subtotal | 2,399 | 1,096 | |
Total | 2,399 | 1,096 | |
Software in progress | |||
Intangible assets | |||
Subtotal | 391 | 115 | |
Total | 391 | 115 | |
Customer relationship | |||
Intangible assets | |||
Subtotal | [2] | 84,195 | 0 |
Total | 84,195 | 0 | |
Non-compete agreement | |||
Intangible assets | |||
Subtotal | [2] | 13,897 | 0 |
Total | 13,897 | 0 | |
Brands | |||
Intangible assets | |||
Subtotal | [2] | 14,541 | 0 |
Total | 14,541 | 0 | |
Internally developed | Software | |||
Intangible assets | |||
Subtotal | [3] | 3,911 | 2,385 |
Total | R$ 3911 | R$ 2385 | |
[1] | Refers to goodwill arising from: a) acquisition of Dextra Technologies S.A., on August 10, 2021, in the amount of R$595,721 (note 9.d); b) acquisition of Comrade Inc. in 2017, in the amount of R$19,644 (R$10,969 as of December 31, 2020), which was merged in 2018, into the subsidiary CI&T Inc; c) acquisition of CI&T IN Software Ltda., which was merged into the Company in 2014 in the amount of R$2,871; and d) acquisition of CI&T Japan Inc. in 2015 in the amount of R$1,233 (R$730 as of December 31, 2020). | ||
[2] | Refers to customer relationship, non-compete agreement and brads arising from acquisition of Dextra Technologies S.A., on August 10, 2021 (note 9.c). | ||
[3] | Refer s to internal expenses with software development to be sold by the Group and also for internal use . |
Intangible assets (Details 1)
Intangible assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Intangible assets | ||||
Beginning balance | R$ 18166 | |||
Impairment loss | (21,895) | R$ 0 | R$ 0 | |
Ending balance | 738,803 | 18,166 | ||
Balance at December 31 | 738,803 | 18,166 | ||
Cost | ||||
Intangible assets | ||||
Beginning balance | 37,768 | 35,688 | ||
Additions due to business combination (note 9) | 744,244 | |||
Exchange rate changes | 9,216 | 331 | ||
Additions | 4,165 | 1,765 | ||
Impairment loss | [1] | (23,518) | ||
Disposals | 16 | |||
Write-off | (568) | |||
Transfers | 0 | 0 | ||
Ending balance | 771,307 | 37,768 | 35,688 | |
Balance at December 31 | 771,307 | 37,768 | 35,688 | |
Amortization | ||||
Intangible assets | ||||
Beginning balance | (19,602) | (17,143) | (14,369) | |
Exchange rate changes | (32) | (298) | (165) | |
Investment spin-off | 37 | |||
Amortization additions | (14,516) | (2,177) | (2,777) | |
Impairment loss | [1] | (1,624) | ||
Disposals | (16) | (131) | ||
Write-off | 22 | |||
Ending balance | (32,504) | (19,602) | (17,143) | |
Balance at December 31 | (32,504) | (19,602) | (17,143) | |
Network software | ||||
Intangible assets | ||||
Beginning balance | 1,096 | |||
Ending balance | 2,399 | 1,096 | ||
Balance at December 31 | 2,399 | 1,096 | ||
Network software | Cost | ||||
Intangible assets | ||||
Beginning balance | 9,732 | 9,229 | ||
Additions due to business combination (note 9) | 191 | |||
Exchange rate changes | 38 | 331 | ||
Additions | 1,999 | 188 | ||
Impairment loss | [1] | 0 | ||
Disposals | 16 | |||
Write-off | (18) | |||
Transfers | 0 | 0 | ||
Ending balance | 11,942 | 9,732 | 9,229 | |
Balance at December 31 | 11,942 | 9,732 | 9,229 | |
Network software | Amortization | ||||
Intangible assets | ||||
Beginning balance | (8,636) | (7,657) | (6,786) | |
Exchange rate changes | (32) | (298) | (165) | |
Investment spin-off | 37 | |||
Amortization additions | (893) | (697) | (874) | |
Impairment loss | [1] | 0 | ||
Disposals | (16) | (131) | ||
Write-off | 18 | |||
Ending balance | (9,543) | (8,636) | (7,657) | |
Balance at December 31 | (9,543) | (8,636) | (7,657) | |
Software in progress | ||||
Intangible assets | ||||
Beginning balance | 115 | |||
Ending balance | 391 | 115 | ||
Balance at December 31 | 391 | 115 | ||
Software in progress | Cost | ||||
Intangible assets | ||||
Beginning balance | 115 | 445 | ||
Additions due to business combination (note 9) | 0 | |||
Exchange rate changes | 0 | 0 | ||
Additions | 738 | 931 | ||
Impairment loss | [1] | 0 | ||
Disposals | 0 | |||
Write-off | (550) | |||
Transfers | 88 | (1,261) | ||
Ending balance | 391 | 115 | 445 | |
Balance at December 31 | 391 | 115 | 445 | |
Software in progress | Amortization | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | 0 | 0 | 0 | |
Impairment loss | [1] | 0 | ||
Disposals | 0 | 0 | ||
Write-off | 0 | |||
Ending balance | 0 | 0 | 0 | |
Balance at December 31 | 0 | 0 | 0 | |
Customer relationship | ||||
Intangible assets | ||||
Beginning balance | 0 | |||
Ending balance | 84,195 | 0 | ||
Balance at December 31 | 84,195 | 0 | ||
Customer relationship | Cost | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | ||
Additions due to business combination (note 9) | 88,961 | |||
Exchange rate changes | 0 | 0 | ||
Additions | 0 | 0 | ||
Impairment loss | [1] | 0 | ||
Disposals | 0 | |||
Write-off | 0 | |||
Transfers | 0 | 0 | ||
Ending balance | 88,961 | 0 | 0 | |
Balance at December 31 | 88,961 | 0 | 0 | |
Customer relationship | Amortization | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | (4,766) | 0 | 0 | |
Impairment loss | [1] | 0 | ||
Disposals | 0 | 0 | ||
Write-off | 0 | |||
Ending balance | (4,766) | 0 | 0 | |
Balance at December 31 | (4,766) | 0 | 0 | |
Non-compete agreement | ||||
Intangible assets | ||||
Beginning balance | 0 | |||
Ending balance | 13,897 | 0 | ||
Balance at December 31 | 13,897 | 0 | ||
Non-compete agreement | Cost | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | ||
Additions due to business combination (note 9) | 16,257 | |||
Exchange rate changes | 0 | 0 | ||
Additions | 0 | 0 | ||
Impairment loss | [1] | (2,795) | ||
Disposals | 0 | |||
Write-off | 0 | |||
Transfers | 0 | 0 | ||
Ending balance | 13,462 | 0 | 0 | |
Balance at December 31 | 13,462 | 0 | 0 | |
Non-compete agreement | Amortization | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | (1,189) | 0 | 0 | |
Impairment loss | [1] | (1,624) | ||
Disposals | 0 | 0 | ||
Ending balance | (435) | 0 | 0 | |
Balance at December 31 | (435) | 0 | 0 | |
Brands | ||||
Intangible assets | ||||
Beginning balance | 0 | |||
Ending balance | 14,541 | 0 | ||
Balance at December 31 | 14,541 | 0 | ||
Brands | Cost | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | ||
Additions due to business combination (note 9) | 20,501 | |||
Exchange rate changes | 0 | 0 | ||
Additions | 0 | 0 | ||
Impairment loss | [1] | 0 | ||
Disposals | 0 | |||
Write-off | 0 | |||
Transfers | 0 | 0 | ||
Ending balance | 20,501 | 0 | 0 | |
Balance at December 31 | 20,501 | 0 | 0 | |
Brands | Amortization | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | (5,960) | 0 | 0 | |
Impairment loss | [1] | 0 | ||
Disposals | 0 | 0 | ||
Write-off | 0 | |||
Ending balance | (5,960) | 0 | 0 | |
Balance at December 31 | (5,960) | 0 | 0 | |
Goodwill | ||||
Intangible assets | ||||
Beginning balance | 14,570 | |||
Ending balance | 619,469 | 14,570 | ||
Balance at December 31 | 619,469 | 14,570 | ||
Goodwill | Cost | ||||
Intangible assets | ||||
Beginning balance | 14,570 | 14,570 | ||
Additions due to business combination (note 9) | 595,721 | |||
Exchange rate changes | 9,178 | 0 | ||
Additions | 0 | 0 | ||
Impairment loss | [1] | 0 | ||
Disposals | 0 | |||
Write-off | 0 | |||
Transfers | 0 | 0 | ||
Ending balance | 619,469 | 14,570 | 14,570 | |
Balance at December 31 | 619,469 | 14,570 | 14,570 | |
Goodwill | Amortization | ||||
Intangible assets | ||||
Beginning balance | 0 | 0 | 0 | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | 0 | 0 | 0 | |
Impairment loss | [1] | 0 | ||
Disposals | 0 | 0 | ||
Write-off | 0 | |||
Ending balance | 0 | 0 | 0 | |
Balance at December 31 | 0 | 0 | 0 | |
Internally developed | Software | ||||
Intangible assets | ||||
Beginning balance | 2,385 | |||
Ending balance | 3,911 | 2,385 | ||
Balance at December 31 | 3,911 | 2,385 | ||
Internally developed | Software | Cost | ||||
Intangible assets | ||||
Beginning balance | 13,351 | 11,444 | ||
Additions due to business combination (note 9) | 22,613 | |||
Exchange rate changes | 0 | 0 | ||
Additions | 1,428 | 646 | ||
Impairment loss | [1] | (20,723) | ||
Disposals | 0 | |||
Write-off | 0 | |||
Transfers | (88) | 1,261 | ||
Ending balance | 16,581 | 13,351 | 11,444 | |
Balance at December 31 | 16,581 | 13,351 | 11,444 | |
Internally developed | Software | Amortization | ||||
Intangible assets | ||||
Beginning balance | (10,966) | (9,486) | (7,583) | |
Exchange rate changes | 0 | 0 | 0 | |
Investment spin-off | 0 | |||
Amortization additions | (1,708) | (1,480) | (1,903) | |
Impairment loss | [1] | 0 | ||
Disposals | 0 | 0 | ||
Write-off | 4 | |||
Ending balance | (12,670) | (10,966) | (9,486) | |
Balance at December 31 | R$ 12670 | R$ 10966 | R$ 9486 | |
[1] | After the consummation of the Dextra Group acquisition, the Company decided to discontinue the investment in the intangible assets, acquired in the business combination and initially recognized as internally developed software, in the amount of R$20,723, due to growth strategies in the digital transformation market, with the purpose more directed to the development of customized and on demand software for customers. The residual amount with respect to a non-compete agreement, in the amount of R$1,171, was also recognized as impairment. The total amount of impairment loss of intangible assets was recognized in the caption “Other income (expenses), net” (note 24.1), in the amount of R$21,895, as of December 31, 2021. |
Intangible assets (Details 2)
Intangible assets (Details 2) - Cash-generating units [member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of information for cash-generating units | ||
Discount rate - before tax | 19.06% | 12.54% |
Discount rate - after tax | 12.94% | 12.38% |
Budgeted EBITDA growth rate (average for the next five years) | 22.00% | 20.00% |
Terminal value growth rate: | 3.50% | 3.50% |
Intangible assets (Details 3 -
Intangible assets (Details 3 - Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 10, 2021 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible assets | |||||||
Impairment of intangible assets | R$ 21895 | R$ 0 | R$ 0 | ||||
Dextra Technologies S.A. | |||||||
Intangible assets | |||||||
Goodwill arising from acquisition | R$ 595721 | ||||||
Comrade Inc. | |||||||
Intangible assets | |||||||
Goodwill arising from acquisition | 10,969 | R$ 19644 | |||||
CI&T IN Software Ltda. | |||||||
Intangible assets | |||||||
Goodwill arising from acquisition | R$ 2871 | ||||||
CI&T Japan Inc. | |||||||
Intangible assets | |||||||
Goodwill arising from acquisition | R$ 730 | R$ 1233 | |||||
Non-compete agreement | Dextra Technologies S.A. | |||||||
Intangible assets | |||||||
Residual amount of intangible assets | 1,171 | ||||||
Internally developed | Software | Dextra Technologies S.A. | |||||||
Intangible assets | |||||||
Write-off | R$ 20723 |
Intangible assets (Details 4 -
Intangible assets (Details 4 - Textuals) - Cash-generating units [member] | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of information for cash-generating units | |
Forecast period of financial projections | 5 years |
Forecast period of cash flow projections | 5 years |
Forecast period of revenue growth projections | 5 years |
Percentage of EBITDA margin on net revenue per annum | 22.00% |
Bottom of range [member] | |
Disclosure of information for cash-generating units | |
Average revenue growth rate per annum | 28.00% |
Top of range [member] | |
Disclosure of information for cash-generating units | |
Average revenue growth rate per annum | 43.00% |
Leases (Details)
Leases (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Right-of-use asset | ||
Total | R$ 73827 | R$ 69765 |
Properties | ||
Right-of-use asset | ||
Total | 69,441 | 66,459 |
Vehicles | ||
Right-of-use asset | ||
Total | 4,173 | 2,809 |
IT equipment | ||
Right-of-use asset | ||
Total | R$ 213 | R$ 497 |
Leases (Details 1)
Leases (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use asset | |||
Right-of-use asset at beginning of period | R$ 69765 | ||
Right-of-use asset at end of period | 73,827 | R$ 69765 | |
Net balance at | 73,827 | 69,765 | |
Cost | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 94,408 | 88,388 | |
Additions due to business combination (note 9.c) | 5,414 | ||
Foreign currency difference | 2,747 | 8,380 | |
Additions | 15,539 | 16,808 | |
Derecognition of right-of-use assets | (4,563) | (19,168) | |
Remeasurement of right-of-use assets | 1,318 | ||
Right-of-use asset at end of period | 114,863 | 94,408 | R$ 88388 |
Net balance at | 114,863 | 94,408 | 88,388 |
Depreciation | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | (24,643) | (14,490) | 0 |
Foreign currency difference | (857) | (988) | (32) |
Depreciation | (18,763) | (17,212) | (14,458) |
Derecognition of right-of-use assets | 3,602 | 8,047 | |
Remeasurement of right-of-use assets | (376) | ||
Right-of-use asset at end of period | (41,037) | (24,643) | (14,490) |
Net balance at | (41,037) | (24,643) | (14,490) |
Properties | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 66,459 | ||
Right-of-use asset at end of period | 69,441 | 66,459 | |
Net balance at | 69,441 | 66,459 | |
Properties | Cost | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 88,549 | 84,324 | |
Additions due to business combination (note 9.c) | 5,414 | ||
Foreign currency difference | 2,744 | 8,370 | |
Additions | 11,815 | 14,305 | |
Derecognition of right-of-use assets | (2,200) | (18,450) | |
Remeasurement of right-of-use assets | 1,318 | ||
Right-of-use asset at end of period | 107,640 | 88,549 | 84,324 |
Net balance at | 107,640 | 88,549 | 84,324 |
Properties | Depreciation | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | (22,090) | (13,434) | 0 |
Foreign currency difference | (856) | (979) | (32) |
Depreciation | (16,535) | (15,320) | (13,402) |
Derecognition of right-of-use assets | 1,657 | 7,643 | |
Remeasurement of right-of-use assets | (376) | ||
Right-of-use asset at end of period | (38,200) | (22,090) | (13,434) |
Net balance at | (38,200) | (22,090) | (13,434) |
Vehicles | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 2,809 | ||
Right-of-use asset at end of period | 4,173 | 2,809 | |
Net balance at | 4,173 | 2,809 | |
Vehicles | Cost | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 5,008 | 3,213 | |
Additions due to business combination (note 9.c) | 0 | ||
Foreign currency difference | 3 | 10 | |
Additions | 3,724 | 2,503 | |
Derecognition of right-of-use assets | (2,363) | (718) | |
Remeasurement of right-of-use assets | 0 | ||
Right-of-use asset at end of period | 6,372 | 5,008 | 3,213 |
Net balance at | 6,372 | 5,008 | 3,213 |
Vehicles | Depreciation | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | (2,199) | (985) | 0 |
Foreign currency difference | (1) | (9) | 0 |
Depreciation | (1,944) | (1,609) | (985) |
Derecognition of right-of-use assets | 1,945 | 404 | |
Remeasurement of right-of-use assets | 0 | ||
Right-of-use asset at end of period | (2,199) | (2,199) | (985) |
Net balance at | (2,199) | (2,199) | (985) |
IT equipment | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 497 | ||
Right-of-use asset at end of period | 213 | 497 | |
Net balance at | 213 | 497 | |
IT equipment | Cost | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | 851 | 851 | |
Additions due to business combination (note 9.c) | 0 | ||
Foreign currency difference | 0 | 0 | |
Additions | 0 | 0 | |
Derecognition of right-of-use assets | 0 | 0 | |
Remeasurement of right-of-use assets | 0 | ||
Right-of-use asset at end of period | 851 | 851 | 851 |
Net balance at | 851 | 851 | 851 |
IT equipment | Depreciation | |||
Right-of-use asset | |||
Right-of-use asset at beginning of period | (354) | (71) | 0 |
Foreign currency difference | 0 | 0 | 0 |
Depreciation | (284) | (283) | (71) |
Derecognition of right-of-use assets | 0 | 0 | |
Remeasurement of right-of-use assets | 0 | ||
Right-of-use asset at end of period | (638) | (354) | (71) |
Net balance at | R$ 638 | R$ 354 | R$ 71 |
Leases (Details 2)
Leases (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Right-of-use asset | ||
Total | R$ 81888 | R$ 75228 |
Current | 21,214 | 14,569 |
Non-current | 60,674 | 60,659 |
Total | R$ 81888 | R$ 75228 |
Properties | ||
Right-of-use asset | ||
Average discount rate (per year) | 10.88% | 7.56% |
Total | R$ 77366 | R$ 71765 |
Total | R$ 77366 | R$ 71765 |
Vehicles | ||
Right-of-use asset | ||
Average discount rate (per year) | 14.54% | 12.69% |
Total | R$ 4285 | R$ 2940 |
Total | R$ 4285 | R$ 2940 |
IT equipment | ||
Right-of-use asset | ||
Average discount rate (per year) | 7.70% | 7.70% |
Total | R$ 237 | R$ 523 |
Total | R$ 237 | R$ 523 |
Leases (Details 3 - Textuals)
Leases (Details 3 - Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Period of lease term of short-term leases | 12 months | |
Rental expenses | R$ 5922 | R$ 4669 |
Loans and borrowings (Details)
Loans and borrowings (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | ||||
Loans and borrowings | |||||
Total loans and borrowings | R$ 788709 | R$ 89230 | |||
Itaú | 2022 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [1] | R$ 2349 | 5,936 | ||
Loans and borrowings, Currency | [1] | USD | |||
Itaú | 2022 | Weighted average | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | [1] | 4.82% | |||
Santander Bank S/A | 2021 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [2] | R$ 0 | 33 | ||
Loans and borrowings, Currency | [2] | BRL | |||
Santander Bank S/A | 2021 | Weighted average | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | [2] | 12.87% | |||
Santander Bank S/A | 2026 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [3] | R$ 204047 | 0 | ||
Loans and borrowings, Currency | [3] | BRL | |||
Average interest rate per year (%) | [3] | 1.60% | |||
Loans and borrowings, interest rate basis | CDI | ||||
Bradesco | 2021 / 2023 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [1] | R$ 11684 | 52,081 | ||
Loans and borrowings, Currency | [1] | BRL | |||
Loans and borrowings, interest rate basis | [1] | CDI | |||
Bradesco | 2021 / 2023 | Minimum | |||||
Loans and borrowings | |||||
Loans and borrowings, adjustment to interest rate basis | [1] | 3.57% | |||
Bradesco | 2021 / 2023 | Maximum | |||||
Loans and borrowings | |||||
Loans and borrowings, adjustment to interest rate basis | [1] | 1.10% | |||
Bradesco | 2026 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [1] | R$ 306417 | 0 | ||
Loans and borrowings, Currency | [1] | BRL | |||
Loans and borrowings, interest rate basis | CDI | ||||
Loans and borrowings, adjustment to interest rate basis | [1] | 1.75% | |||
Banco do Brasil | 2021 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [4] | R$ 0 | 20,748 | ||
Loans and borrowings, Currency | [4] | USD | |||
Banco do Brasil | 2021 | Weighted average | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | [4] | 3.05% | |||
Banco do Brasil | 2022 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [4] | R$ 56551 | [5] | 0 | |
Loans and borrowings, Currency | [4] | USD | |||
Banco do Brasil | 2022 | Weighted average | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | [4] | 2.37% | |||
HSBC - CI&T Inc. | 2021 | |||||
Loans and borrowings | |||||
Total loans and borrowings | R$ 0 | 10,432 | [5] | ||
Loans and borrowings, Currency | [5] | USD | |||
Loans and borrowings, interest rate basis | [5] | Prime rate | |||
Loans and borrowings, adjustment to interest rate basis | [5] | 1.00% | |||
Citibank - CI&T Inc. | 2022 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [5] | R$ 11164 | 0 | ||
Loans and borrowings, Currency | [5] | USD | |||
Loans and borrowings, interest rate basis | [5] | Libor 3 months rate | |||
Loans and borrowings, adjustment to interest rate basis | [5] | 1.90% | |||
Citibank | 2022 | |||||
Loans and borrowings | |||||
Total loans and borrowings | R$ 28328 | 0 | |||
Loans and borrowings, Currency | USD | ||||
Citibank | 2022 | Minimum | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | 2.28% | ||||
Citibank | 2022 | Maximum | |||||
Loans and borrowings | |||||
Average interest rate per year (%) | 2.30% | ||||
Citibank | 2026 | |||||
Loans and borrowings | |||||
Total loans and borrowings | [4] | R$ 168169 | R$ 0 | ||
Loans and borrowings, Currency | [4] | USD | |||
Loans and borrowings, interest rate basis | [4] | Libor 3 months rate | |||
Loans and borrowings, adjustment to interest rate basis | [4] | 2.07% | |||
[1] | Export credit note - NCE: Refers to financing to export software development services. | ||||
[2] | Refers to Leasing contracts. | ||||
[3] | Refers to Law 4131 - Foreign currency loans granted by the banks abroad to a Brazilian company. | ||||
[4] | Advance on | ||||
[5] | Refers to Revolving Credit Facility. |
Loans and borrowings (Details 1
Loans and borrowings (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and borrowings | ||
Current | R$ 164403 | R$ 75377 |
Non-current | 624,306 | 13,853 |
Total | R$ 788709 | R$ 89230 |
Loans and borrowings (Details 2
Loans and borrowings (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and borrowings | ||
Non-current liabilities | R$ 624306 | R$ 13853 |
2023 | ||
Loans and borrowings | ||
Non-current liabilities | 112,031 | |
2024 | ||
Loans and borrowings | ||
Non-current liabilities | 143,197 | |
2025 | ||
Loans and borrowings | ||
Non-current liabilities | 196,925 | |
2026 | ||
Loans and borrowings | ||
Non-current liabilities | R$ 172153 |
Loans and borrowings (Details 3
Loans and borrowings (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | R$ 740596 | R$ 144269 | R$ 8179 |
Issuance of common shares at initial public offering | 915,947 | 0 | 0 |
Transaction cost of offering | (55,874) | 0 | 0 |
Share-based plan contributions | 1,282 | 0 | 0 |
Interest on equity paid | (6,288) | (4,276) | (2,676) |
Dividends paid (note 22) | (126,045) | (30,977) | (40,059) |
Net cash from financing activities | 1,376,766 | 5,409 | (69,666) |
Other changes - liabilities | |||
Interest expenses | 29,729 | 10,304 | 8,063 |
Aggregated liabilities arising from financing activities | |||
The reconciliation of change in liabilities to cash flows arising from financing activities | |||
Beginning balance | 280,530 | 142,179 | 209,511 |
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | 740,596 | 144,269 | 8,179 |
Loans, borrowings and lease liabilities payments | (92,852) | (103,607) | (35,110) |
Issuance of common shares at initial public offering | 915,947 | ||
Transaction cost of offering | (66,876) | ||
Share-based plan contributions | 1,282 | ||
Interest on equity paid | (6,288) | (4,276) | (2,676) |
Dividends paid (note 22) | (126,045) | (30,977) | (40,059) |
Net cash from financing activities | 1,365,764 | 5,409 | (69,666) |
Exchange rate changes | 2,655 | 8,967 | 431 |
Other changes - liabilities | |||
Additions due to business combination (note 9.c) | 6,139 | ||
Capital increase (Note 18.a) | (43,500) | ||
Partial spin-off (Note 1.a) | 213 | ||
New leases | 15,504 | 16,715 | 6,496 |
Remeasurement | 1,351 | ||
Interest expenses | 29,735 | 10,304 | 8,063 |
Interest paid | (17,902) | (8,903) | (8,041) |
Other borrowing/lease costs | 22,048 | 2,508 | 1,043 |
Lease write-offs | (1,135) | (11,037) | |
Total other changes - liabilities | 55,740 | 9,587 | (35,726) |
Total other changes - equity | 217,950 | 114,388 | 37,629 |
Ending balance | 1,922,639 | 280,530 | 142,179 |
Loans and borrowings | |||
The reconciliation of change in liabilities to cash flows arising from financing activities | |||
Beginning balance | 89,230 | 27,849 | 42,288 |
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | 740,596 | 144,269 | 8,179 |
Loans, borrowings and lease liabilities payments | (75,196) | (88,107) | (24,161) |
Issuance of common shares at initial public offering | 0 | ||
Transaction cost of offering | 0 | ||
Share-based plan contributions | 0 | ||
Interest on equity paid | 0 | 0 | 0 |
Dividends paid (note 22) | 0 | 0 | 0 |
Net cash from financing activities | 665,400 | 56,162 | (15,982) |
Exchange rate changes | 601 | 1,310 | 484 |
Other changes - liabilities | |||
Additions due to business combination (note 9.c) | 0 | ||
Capital increase (Note 18.a) | 0 | ||
Partial spin-off (Note 1.a) | 0 | ||
New leases | 0 | 0 | 0 |
Remeasurement | 0 | ||
Interest expenses | 23,366 | 5,281 | 1,928 |
Interest paid | (12,149) | (3,880) | (1,912) |
Other borrowing/lease costs | 22,261 | 2,508 | 1,043 |
Lease write-offs | 0 | 0 | |
Total other changes - liabilities | 33,478 | 3,909 | 1,059 |
Total other changes - equity | 0 | 0 | 0 |
Ending balance | 788,709 | 89,230 | 27,849 |
Leases (note 15.b) | |||
The reconciliation of change in liabilities to cash flows arising from financing activities | |||
Beginning balance | 75,228 | 77,393 | 81,893 |
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | 0 | 0 | 0 |
Loans, borrowings and lease liabilities payments | (17,656) | (15,500) | (10,949) |
Issuance of common shares at initial public offering | 0 | ||
Transaction cost of offering | 0 | ||
Share-based plan contributions | 0 | ||
Interest on equity paid | 0 | 0 | 0 |
Dividends paid (note 22) | 0 | 0 | 0 |
Net cash from financing activities | (17,656) | (15,500) | (10,949) |
Exchange rate changes | 2,054 | 7,657 | (53) |
Other changes - liabilities | |||
Additions due to business combination (note 9.c) | 6,139 | ||
Capital increase (Note 18.a) | 0 | ||
Partial spin-off (Note 1.a) | 0 | ||
New leases | 15,504 | 16,715 | 6,496 |
Remeasurement | 1,351 | ||
Interest expenses | 6,369 | 5,023 | 6,135 |
Interest paid | (5,753) | (5,023) | (6,129) |
Other borrowing/lease costs | (213) | 0 | 0 |
Lease write-offs | (1,135) | (11,037) | |
Total other changes - liabilities | 22,262 | 5,678 | 6,502 |
Total other changes - equity | 0 | 0 | 0 |
Ending balance | 81,888 | 75,228 | 77,393 |
Share premium and Reserves | |||
The reconciliation of change in liabilities to cash flows arising from financing activities | |||
Beginning balance | 116,072 | ||
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | 0 | ||
Loans, borrowings and lease liabilities payments | 0 | ||
Issuance of common shares at initial public offering | 915,947 | ||
Transaction cost of offering | (66,876) | ||
Share-based plan contributions | 1,282 | ||
Interest on equity paid | (6,288) | ||
Dividends paid (note 22) | (126,045) | ||
Net cash from financing activities | 718,020 | ||
Exchange rate changes | 0 | ||
Other changes - liabilities | |||
Additions due to business combination (note 9.c) | 0 | ||
New leases | 0 | ||
Interest expenses | 0 | ||
Interest paid | 0 | ||
Other borrowing/lease costs | 0 | ||
Lease write-offs | 0 | ||
Total other changes - liabilities | 0 | ||
Total other changes - equity | 217,950 | ||
Ending balance | 1,052,042 | 116,072 | |
Net equity Reserves | |||
The reconciliation of change in liabilities to cash flows arising from financing activities | |||
Beginning balance | R$ 116072 | 36,937 | 85,330 |
Changes in cash flow from financing activities | |||
Proceeds from loans and borrowings | 0 | 0 | |
Loans, borrowings and lease liabilities payments | 0 | 0 | |
Interest on equity paid | (4,276) | (2,676) | |
Dividends paid (note 22) | (30,977) | (40,059) | |
Net cash from financing activities | (35,253) | (42,735) | |
Exchange rate changes | 0 | 0 | |
Other changes - liabilities | |||
Capital increase (Note 18.a) | (43,500) | ||
Partial spin-off (Note 1.a) | 213 | ||
New leases | 0 | 0 | |
Interest expenses | 0 | 0 | |
Interest paid | 0 | 0 | |
Other borrowing/lease costs | 0 | 0 | |
Lease write-offs | 0 | ||
Total other changes - liabilities | 0 | (43,287) | |
Total other changes - equity | 114,388 | 37,629 | |
Ending balance | R$ 116072 | R$ 36937 |
Loans and borrowings (Details 4
Loans and borrowings (Details 4 - Textuals) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$)d | |
Loans and borrowings | |
Borrowings covenants, Threshold number of days for send annual financial statements after fiscal year-end | 180 |
Public note of default amount, borrowings covenants | R$ | R$ 500 |
Number of Tranches for Borrowing Facility | 30 |
Salaries and welfare charges (D
Salaries and welfare charges (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Salaries and welfare charges | ||||
Salaries | R$ 31342 | R$ 15258 | R$ 10311 | |
Accrued vacation and charges | 83,750 | 50,064 | 33,983 | |
Bonus | 72,810 | 52,312 | 26,015 | R$ 20466 |
Withholding income tax | 20,604 | 10,604 | 7,519 | |
Payroll charges (social contributions) | 18,124 | 5,929 | 4,051 | |
Others | 7,543 | 7,627 | 6,029 | |
Total | R$ 234173 | R$ 141794 | R$ 87908 |
Salaries and welfare charges _2
Salaries and welfare charges (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Salaries and welfare charges | |||
Balance at beginning of period | R$ 52312 | R$ 26015 | R$ 20466 |
Addition | 65,603 | 51,916 | 26,033 |
Payment | (50,402) | (28,667) | (21,024) |
Effect of movements in exchange rates | 5,297 | 3,048 | 540 |
Balance at end of period | R$ 72810 | R$ 52312 | R$ 26015 |
Accounts payable for business_3
Accounts payable for business combination (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Aug. 10, 2021 | Dec. 31, 2020 |
Accounts payable for business combination | |||
Remaining acquisition cost | R$ 48817 | ||
Retained amount | 30,000 | ||
Other | 6,909 | ||
Total | 85,726 | R$ 133573 | |
Current | 48,923 | R$ 0 | |
Non-current | 36,803 | R$ 0 | |
Total | R$ 85726 | R$ 133573 |
Accounts payable for business_4
Accounts payable for business combination (Details 1) R$ in Thousands | 5 Months Ended |
Dec. 31, 2021BRL (R$) | |
Accounts payable for business combination | |
Balance at beginning of period | R$ 133573 |
Monetary adjustment | 3,091 |
Payment | (50,938) |
Balance at end of period | R$ 85726 |
Accounts payable for business_5
Accounts payable for business combination (Details 2 - Textuals) - BRL (R$) R$ in Thousands | Dec. 02, 2021 | Dec. 31, 2021 |
Business combinations | ||
Payment upon anticipation of part of the remaining balance | R$ 50938 | |
CI&T Brazil | ||
Business combinations | ||
Payment upon anticipation of part of the remaining balance | R$ 50938 |
Provisions (Details)
Provisions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Balance at beginning of period | R$ 161 | R$ 173 |
Provisions | 472 | 13 |
Reversal | (25) | |
Balance at end of period | 633 | 161 |
Tax | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of period | 11 | 10 |
Provisions | 120 | 1 |
Reversal | 0 | |
Balance at end of period | 131 | 11 |
Labor | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of period | 150 | 163 |
Provisions | 352 | 12 |
Reversal | (25) | |
Balance at end of period | R$ 502 | R$ 150 |
Provisions (Details 1 - Textual
Provisions (Details 1 - Textual) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of other provisions [line items] | |||
Judicial deposits | R$ 3079 | R$ 3083 | |
Provision recorded | 633 | 161 | R$ 173 |
Civil, labor and tax lawsuits contingent liabilities | |||
Disclosure of other provisions [line items] | |||
Provision recorded | 0 | ||
Contingent liabilities | 4,292 | 215 | |
Tax | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | 2,933 | 2,932 | |
Provision recorded | 131 | 11 | 10 |
Labor | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | 142 | 151 | |
Provision recorded | 502 | R$ 150 | R$ 163 |
Civil | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | 4 | ||
Dextra Group [Member] | Civil, labor and tax lawsuits contingent liabilities | |||
Disclosure of other provisions [line items] | |||
Contingent liabilities | R$ 4093 |
Employee benefits (Details - Te
Employee benefits (Details - Textuals) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Employee benefits | |
Maximum percentage of employees' salary to be paid as contribution by participating entities in defined benefit plan | 4.00% |
Consideration to be paid by participants in defined benefit plan | R$ 0 |
Post-employment obligations | 0 |
Other long-term benefits | R$ 0 |
Stock option plan (Details)
Stock option plan (Details) R$ / shares in Units, R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$)sharesR$ / shares | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | ||
Effects on income for the year: | ||||
Expenses incurred until December 31, 2020 (R$) | R$ | R$ 967 | R$ 142 | R$ 0 | |
Expenses incurred until December 31, 2021 (R$) | R$ | R$ 967 | 142 | R$ 0 | |
Equity-settled 1st and 2nd Program | ||||
Share-based payments | ||||
Grant date | 01/04/2020 | |||
Exercise Period: | [1] | 6 years 9 months 18 days | ||
Exercise | [2] | |||
Limit date | [1] | 01/01/2027 | ||
Activity of stock option number | ||||
(+) Total number of granted options | shares | 3,940,478 | |||
(-) Canceled options | shares | 78,360 | |||
(=) Number of options not exercised | shares | [3] | 3,862,118 | ||
(=) Number of outstanding options on 12/31/2021 | shares | [3] | 3,862,118 | ||
(=) Number of exercisable options on 12/31/2021 | shares | 1,244,994 | |||
Inputs used in the measurement | ||||
Exercise price (in reais) | R$ / shares | [3] | R$ 9.58 | ||
Share price on the grant date (in reais) | R$ / shares | [4] | R$ 21.68 | ||
Volatility (% p.a.) | [5] | 24.19% | ||
Interest rate (% p.a.) | 1.53% | |||
Option value (in reais) | R$ / shares | [6] | R$ 0.48 | ||
Remaining average term (expected lifetime) | [7] | 3 years 8 months 12 days | ||
Effects on income for the year: | ||||
Total expense attributed to the granting of options (R$) | R$ | R$ 1846 | |||
Expenses incurred until December 31, 2020 (R$) | R$ | 668 | 142 | ||
Expenses incurred until December 31, 2021 (R$) | R$ | 668 | 142 | ||
Expenses to incur | R$ | R$ 1036 | |||
Equity-settled 3rd Program | ||||
Share-based payments | ||||
Grant date | 01/04/2021 | |||
Exercise Period: | 5 years 9 months 18 days | |||
Exercise | ||||
Limit date | 01/01/2027 | |||
Activity of stock option number | ||||
(+) Total number of granted options | shares | 666,616 | |||
(=) Number of options not exercised | shares | 666,616 | |||
(=) Number of outstanding options on 12/31/2021 | shares | 666,616 | |||
(=) Number of exercisable options on 12/31/2021 | shares | 0 | |||
Inputs used in the measurement | ||||
Exercise price (in reais) | R$ / shares | R$ 19.84 | |||
Share price on the grant date (in reais) | R$ / shares | R$ 21.68 | |||
Volatility (% p.a.) | 27.73% | |||
Interest rate (% p.a.) | 2.66% | |||
Option value (in reais) | R$ / shares | R$ 1.81 | |||
Remaining average term (expected lifetime) | 4 years 3 months 18 days | |||
Effects on income for the year: | ||||
Total expense attributed to the granting of options (R$) | R$ | R$ 1275 | |||
Expenses incurred until December 31, 2020 (R$) | R$ | 251 | 0 | ||
Expenses incurred until December 31, 2021 (R$) | R$ | 251 | 0 | ||
Expenses to incur | R$ | R$ 1024 | |||
Equity-settled 4th Program | ||||
Share-based payments | ||||
Grant date | 01/04/2021 | |||
Exercise Period: | [1] | 5 years 9 months 18 days | ||
Exercise | [2] | |||
Limit date | [1] | 01/01/2027 | ||
Activity of stock option number | ||||
(+) Total number of granted options | shares | 187,820 | |||
(-) Canceled options | shares | 19,900 | |||
(=) Number of options not exercised | shares | [3] | 167,920 | ||
(=) Number of outstanding options on 12/31/2021 | shares | [3] | 167,920 | ||
(=) Number of exercisable options on 12/31/2021 | shares | 0 | |||
Inputs used in the measurement | ||||
Exercise price (in reais) | R$ / shares | [3] | R$ 19.84 | ||
Share price on the grant date (in reais) | R$ / shares | [4] | R$ 21.68 | ||
Volatility (% p.a.) | [5] | 27.73% | ||
Interest rate (% p.a.) | 2.66% | |||
Option value (in reais) | R$ / shares | [6] | R$ 1.85 | ||
Remaining average term (expected lifetime) | [7] | 4 years 3 months 18 days | ||
Effects on income for the year: | ||||
Total expense attributed to the granting of options (R$) | R$ | R$ 298 | |||
Expenses incurred until December 31, 2020 (R$) | R$ | 48 | 0 | ||
Expenses incurred until December 31, 2021 (R$) | R$ | 48 | R$ 0 | ||
Expenses to incur | R$ | R$ 250 | |||
[1] | Conditional upon the grace period and assuming the possibility of anticipated vesting in face of a liquidity event . | |||
[2] | Conditional upon the grace period and assuming the possibility of anticipated vesting in face of a liquidity event . | |||
[3] | Price established was based on valuation at the time the options are granted. | |||
[4] | The share price was determined based on valuation prepared by the Group on the date of plan migration | |||
[5] | The expected volatility was estimated based on the historical volatility of the comparable Companies share price. | |||
[6] | Fair value based on the Black-Scholes method . | |||
[7] | Average calculated considering that, according to the definition of the plan, |
Stock option plan (Details 1)
Stock option plan (Details 1) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021BRL (R$)shares | ||
Cash-settled 1st Program | ||
Share-based payments | ||
Granting date | 04/2020 | |
Exercise Period: | 6 years 9 months 18 days | [1] |
Exercise Date | [1] | |
Limit date for exercising the options | 01/01/2027 | [1] |
Total number of options granted | shares | 69,774 | |
Liabilities carrying amount as of December 31, 2021 | R$ | R$ 1307 | |
Cash-settled 2nd Program | ||
Share-based payments | ||
Granting date | 10/2021 | |
Exercise Period: | 5 years 2 months 12 days | [1] |
Exercise Date | [1] | |
Limit date for exercising the options | 01/01/2027 | [1] |
Total number of options granted | shares | 12,130 | |
Liabilities carrying amount as of December 31, 2021 | R$ | R$ 52 | |
[1] | Conditional upon the grace period and assuming the possibility of anticipated vesting in face of a liquidity event . |
Stock option plan (Details 2)
Stock option plan (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Plan in force: | ||||
Equity settled | R$ 967 | R$ 142 | R$ 0 | |
Cash settled | 1,318 | 41 | 0 | |
Canceled plan | 0 | 0 | 1,677 | |
Shares granted to executives’ officers | 246 | 751 | 1,522 | |
Expenses recognized in profit or loss (note 24) | [1] | 2,531 | 934 | 3,199 |
Other effects in shareholders’ equity | 1,282 | 1,751 | 0 | |
Total | 3,813 | 2,685 | 3,199 | |
(-) Effect of cash settled | (1,318) | (41) | 0 | |
Effect of movements in exchange rates | 3 | 8 | (29) | |
Total shareholders’ equity | R$ 2498 | R$ 2652 | R$ 3170 | |
[1] | Stock options in the total amount of R$ 2,531 934 1,930 139 601 795 |
Stock option plan (Details 3 -
Stock option plan (Details 3 - Textuals 1) R$ / shares in Units, R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$)R$ / shares | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Oct. 29, 2021R$ / shares | |
Share-based payments | ||||
Equity settled share-based payments recognized in the statement of profit or loss | R$ | R$ 967 | R$ 142 | R$ 0 | |
Equity-settled 1st and 2nd Program | ||||
Share-based payments | ||||
Percentage of options can be exercised before vesting period | 25.00% | |||
Equity settled share-based payments recognized in the statement of profit or loss | R$ | R$ 668 | 142 | ||
Equity-settled 1st and 2nd Program | Top of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | R$ 653.21 | |||
Equity-settled 1st and 2nd Program | Bottom of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | 9.58 | |||
Equity-settled 3rd Program | ||||
Share-based payments | ||||
Equity settled share-based payments recognized in the statement of profit or loss | R$ | 251 | 0 | ||
Equity-settled 3rd Program | Top of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | 1,352 | |||
Equity-settled 3rd Program | Bottom of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | R$ 19.84 | |||
Equity-settled 4th Program | ||||
Share-based payments | ||||
Equity settled share-based payments recognized in the statement of profit or loss | R$ | R$ 48 | R$ 0 | ||
Equity-settled 4th Program | Top of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | R$ 1352 | |||
Equity-settled 4th Program | Bottom of range [member] | ||||
Share-based payments | ||||
Exercise price of the options | R$ 19.84 | |||
CI&T Brazil | ||||
Share-based payments | ||||
Number of times for entity's share capital than subsidiary share capital | 68.14 | |||
Class A common shares | ||||
Share-based payments | ||||
Number of shares represented by each option | 1 |
Stock option plan (Details 4 -
Stock option plan (Details 4 - Textuals 2) R$ / shares in Units, R$ in Thousands | Oct. 08, 2021BRL (R$)sharesR$ / shares | Jul. 31, 2021BRL (R$) | Aug. 31, 2017BRL (R$)shares | Dec. 31, 2021BRL (R$)R$ / sharesshares | Dec. 31, 2020BRL (R$)R$ / sharesshares | Dec. 31, 2019BRL (R$) | Dec. 19, 2019BRL (R$) | |
Share-based payments | ||||||||
Shares granted to executives’ officers | R$ 246 | R$ 751 | R$ 1522 | |||||
Par value per share | R$ / shares | [1] | R$ 0.00027 | R$ 0.56958 | |||||
Number of shares issued by the subsidiary | shares | 132,197,896 | 121,086,781 | ||||||
Executive key management | ||||||||
Share-based payments | ||||||||
Amount paid for cancellation of the Group's stock option plan | R$ 628 | R$ 43354 | ||||||
Cash-settled Programs | Executive key management | ||||||||
Share-based payments | ||||||||
Indemnities to be paid | R$ 44000 | |||||||
Amount paid for cancellation of the Group's stock option plan | R$ 628 | R$ 43354 | ||||||
Number of share options exercised during the period | shares | 16,530 | |||||||
Par value per share | R$ / shares | R$ 0 | |||||||
Subscription amount through exercise of options | R$ 28697 | |||||||
Cash-settled Programs | Executive key management | Comrade Inc. | ||||||||
Share-based payments | ||||||||
Number of share options granted during the period | shares | 16,530 | |||||||
Period of continued employment under service conditions | 4 years | |||||||
Fair value of the shares was estimated on the acquisition date of the subsidiary | R$ 5120 | |||||||
Cash-settled Programs | Executive key management | CI&T Inc. | ||||||||
Share-based payments | ||||||||
Number of shares issued by the subsidiary | shares | 15,896 | |||||||
[1] | In November 2021 the Group’s shareholders approved a capital stock share split with a 1 68.14 |
Equity (Details)
Equity (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 1 Months Ended | ||||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Equity | |||||
Number of ordinary nominative shares | 132,197,896 | 121,086,781 | |||
Par value | [1] | R$ 0.00027 | R$ 0.56958 | ||
Share capital | R$ 36 | R$ 68968 | |||
Stock Split, Conversion Ratio | 1</span>:<span style="border-left: none; border-right: none;">68.14</span>" id="sjs-C7"><span style="border-left: none; border-right: none;">1</span>:<span style="border-left: none; border-right: none;">68.14</span> | ||||
Retained earnings reserve | R$ 125957 | R$ 95515 | R$ 23979 | ||
[1] | In November 2021 the Group’s shareholders approved a capital stock share split with a 1 68.14 |
Equity (Details 1 - Textuals)
Equity (Details 1 - Textuals) R$ / shares in Units, $ / shares in Units, R$ in Thousands, $ in Thousands | Oct. 08, 2021BRL (R$)R$ / shares | Jun. 28, 2021BRL (R$)R$ / shares | Apr. 30, 2021BRL (R$) | Jul. 31, 2019BRL (R$)shares | May 31, 2019BRL (R$) | Nov. 30, 2021BRL (R$)R$ / sharesshares | Dec. 31, 2021BRL (R$)ItemR$ / sharesshares | Dec. 31, 2020BRL (R$)R$ / sharesshares | Dec. 31, 2019BRL (R$) | Dec. 31, 2021USD ($)$ / sharesshares | Nov. 10, 2021$ / sharesshares | Aug. 02, 2019BRL (R$) | Jul. 30, 2019BRL (R$) | |
Net equity | ||||||||||||||
Share capital | R$ 36 | R$ 68968 | ||||||||||||
Number of shares issued | shares | 132,197,896 | 121,086,781 | 132,197,896 | |||||||||||
Capital increase – Stock redemption reserve | R$ 0 | |||||||||||||
Share Premium | R$ 915947 | R$ 0 | ||||||||||||
Par value per share | R$ / shares | [1] | R$ 0.00027 | R$ 0.56958 | |||||||||||
Share-based compensation | R$ 2498 | R$ 2652 | 3,170 | |||||||||||
Share issuance costs, net of taxes | (66,876) | |||||||||||||
Dividends liability | 0 | |||||||||||||
Additional dividends of previous year | R$ 26567 | 95,368 | 16,263 | 26,567 | ||||||||||
Dividends paid | R$ 126045 | 30,977 | 40,059 | |||||||||||
Additional distribution of dividends of previous year | 11,119 | |||||||||||||
Distribution of dividends from retained earnings | R$ 15448 | |||||||||||||
Class A common shares | ||||||||||||||
Net equity | ||||||||||||||
Number of shares issued | shares | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||||
Number of voting rights per share | Item | 1 | |||||||||||||
Subscription price per share | $ / shares | $ 15 | $ 15 | ||||||||||||
Share Premium | R$ 915947 | $ 166,666 | ||||||||||||
Par value per share | $ / shares | $ 0.00005 | |||||||||||||
Class B common shares | ||||||||||||||
Net equity | ||||||||||||||
Number of shares issued | shares | 117,197,896 | 117,197,896 | ||||||||||||
Number of voting rights per share | Item | 10 | |||||||||||||
CI&T Brazil | ||||||||||||||
Net equity | ||||||||||||||
Share capital | 68,968 | |||||||||||||
Annual limit of provision for interest on equity | R$ 6288 | |||||||||||||
Additional dividends of previous year | R$ 55005 | R$ 40363 | ||||||||||||
Dividends paid | R$ 71040 | |||||||||||||
Dividends declared and paid per common share in 2020 | R$ / shares | R$ 31.24 | R$ 17.6 | ||||||||||||
Sensedia S.A. | ||||||||||||||
Net equity | ||||||||||||||
Amount of Spin-off of the Sensedia SA | R$ 4630 | |||||||||||||
Share capital | ||||||||||||||
Net equity | ||||||||||||||
Share capital | R$ 73598 | R$ 68968 | R$ 30098 | |||||||||||
Capital increase – Stock redemption reserve | 43,500 | |||||||||||||
Cancellation of ordinary shares | shares | 59,546 | |||||||||||||
Capital increase, shares | shares | 121,086,781 | |||||||||||||
Par value per share | R$ / shares | R$ 0.00027 | |||||||||||||
Capital increase | R$ 33 | |||||||||||||
Share-based compensation | R$ 0 | 0 | 0 | |||||||||||
Share issuance costs, net of taxes | 0 | |||||||||||||
Additional dividends of previous year | 0 | R$ 0 | 0 | |||||||||||
Share capital | CI&T Brazil | ||||||||||||||
Net equity | ||||||||||||||
Number of common shares outstanding | shares | 121,086,781 | |||||||||||||
Capital reserve | ||||||||||||||
Net equity | ||||||||||||||
Capital increase – Stock redemption reserve | 0 | |||||||||||||
Capital increase | 88,206 | |||||||||||||
Share-based compensation | 2,498 | 2,498 | R$ 2652 | 3,170 | ||||||||||
Share issuance costs, net of taxes | R$ 66876 | (66,876) | ||||||||||||
Additional dividends of previous year | 0 | 0 | 0 | |||||||||||
Stock redemption reserve | ||||||||||||||
Net equity | ||||||||||||||
Capital increase – Stock redemption reserve | R$ 43500 | (43,500) | ||||||||||||
Share-based compensation | 0 | 0 | ||||||||||||
Share issuance costs, net of taxes | 0 | |||||||||||||
Additional dividends of previous year | R$ 0 | R$ 0 | R$ 0 | |||||||||||
[1] | In November 2021 the Group’s shareholders approved a capital stock share split with a 1 68.14 |
Net revenue (Details)
Net revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenue | |||
Software development revenue | R$ 1394583 | R$ 891012 | R$ 597457 |
Software maintenance revenue | 30,026 | 31,133 | 37,634 |
Revenue from software license agent | 1,637 | 2,413 | 7,005 |
Consulting revenue | 15,922 | 28,601 | 25,942 |
Other revenue | 2,212 | 3,360 | 9,095 |
Total net revenue | R$ 1444380 | R$ 956519 | R$ 677133 |
Net revenue (Details 1)
Net revenue (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net operating revenue | |||
Net revenue | R$ 1444380 | R$ 956519 | R$ 677133 |
Financial Services | |||
Net operating revenue | |||
Net revenue | 487,177 | 324,118 | 231,813 |
Food and Beverages | |||
Net operating revenue | |||
Net revenue | 340,709 | 244,590 | 116,911 |
Pharmaceuticals and Cosmetics | |||
Net operating revenue | |||
Net revenue | 206,375 | 134,763 | 85,410 |
Technology, Media, and Telecom | |||
Net operating revenue | |||
Net revenue | 169,311 | 81,961 | 92,113 |
Retail and Manufacturing | |||
Net operating revenue | |||
Net revenue | 93,871 | 83,046 | 65,130 |
Education and Services | |||
Net operating revenue | |||
Net revenue | 64,336 | 41,323 | 21,042 |
Others | |||
Net operating revenue | |||
Net revenue | R$ 82600 | R$ 46718 | R$ 64714 |
Net revenue (Details 2)
Net revenue (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Net operating revenue | |||
Total contract assets | R$ 134388 | R$ 50625 | |
Gross amount | |||
Net operating revenue | |||
Total contract assets | 134,388 | 50,625 | |
Contract assets | |||
Net operating revenue | |||
Expected credit losses | (913) | (675) | R$ 805 |
Local market | Gross amount | |||
Net operating revenue | |||
Total contract assets | 80,107 | 35,364 | |
Foreign market | Gross amount | |||
Net operating revenue | |||
Total contract assets | R$ 55194 | R$ 15936 |
Net revenue (Details 3)
Net revenue (Details 3) - Contract assets - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at beginning of period | R$ 675 | R$ 805 |
(Provision) | (217) | |
Reversal | 218 | |
Effect of movements in exchange rates | (21) | (88) |
Balance at end of period | R$ 913 | R$ 675 |
Expenses by nature (Details)
Expenses by nature (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Expenses by nature | ||||
Employee expenses | R$ 1010989 | R$ 628699 | R$ 453872 | |
Third-party services and other inputs | (65,023) | (55,660) | (36,179) | |
Short-term leases | (5,922) | (4,669) | (4,165) | |
Travel expenses | (4,156) | (8,656) | (25,891) | |
Depreciation and amortization | [1] | (48,354) | (29,882) | (25,577) |
Stock options | [2] | (2,531) | (934) | (3,199) |
Consulting | [3] | (9,177) | (446) | (858) |
Expected credit loss | (497) | (196) | (1,091) | |
Impairment of intangible assets | (21,895) | 0 | 0 | |
Surplus of indemnity | 0 | 18 | (14,891) | |
Other costs and expenses | (31,230) | (19,151) | (19,701) | |
Total | (1,199,774) | (748,275) | (585,434) | |
Disclosed as: | ||||
Costs of services provided | (935,732) | (600,866) | (448,979) | |
Selling expenses | (89,654) | (65,093) | (44,802) | |
General and administrative expenses | (151,681) | (81,161) | (81,197) | |
Research and technological innovation expenses | (4) | (3,462) | (12,093) | |
Impairment loss on trade receivables and contract assets | (497) | (196) | (1,091) | |
Other income (expenses) net | (22,206) | 2,503 | 2,728 | |
Total | R$ 1199774 | R$ 748275 | R$ 585434 | |
[1] | Depreciation and amortization in the total amount of R$ 48,354 29,882 as of December 31, 2019) include R$ 31,884 24,085 16,470 5,797 as of December 31, 2019) as expenses | |||
[2] | Stock options in the total amount of R$ 2,531 934 1,930 139 601 795 | |||
[3] | Consulting expenses in the total amount of R$ 9,177 446 6,957 446 2,220 |
Expenses by nature (Details 1)
Expenses by nature (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses by nature | |||
Costs attributable to secondary offer | R$ 2220 | R$ 0 | R$ 0 |
Impairment of intangible assets | (21,895) | 0 | 0 |
Government grant | 2,481 | 1,571 | 3 |
Other | (572) | 932 | 2,725 |
Other income (expenses), net | R$ 22206 | R$ 2503 | R$ 2728 |
Expenses by nature (Details 2 -
Expenses by nature (Details 2 - Textual) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Depreciation and amortization | [1] | R$ 48354 | R$ 29882 | R$ 25577 |
Stock options | [2] | 2,531 | 934 | 3,199 |
Consulting expenses | [3] | 9,177 | 446 | 858 |
Acquisitions expenses | 6,957 | 446 | 858 | |
Costs directly attributable to secondary public share offerings | 2,220 | 0 | 0 | |
Costs of services | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Depreciation and amortization | 31,884 | 24,085 | 19,527 | |
Stock options | 1,930 | 139 | 626 | |
Expense | ||||
Disclosure of attribution of expenses by nature to their function [line items] | ||||
Depreciation and amortization | 16,470 | 5,797 | 6,050 | |
Stock options | R$ 601 | R$ 795 | R$ 2573 | |
[1] | Depreciation and amortization in the total amount of R$ 48,354 29,882 as of December 31, 2019) include R$ 31,884 24,085 16,470 5,797 as of December 31, 2019) as expenses | |||
[2] | Stock options in the total amount of R$ 2,531 934 1,930 139 601 795 | |||
[3] | Consulting expenses in the total amount of R$ 9,177 446 6,957 446 2,220 |
Net finance costs (Details)
Net finance costs (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finance income: | |||
Income from financial investments | R$ 4321 | R$ 2626 | R$ 2372 |
Foreign-exchange gain | 46,302 | 28,135 | 12,489 |
Gains on derivatives | 18,585 | 16,652 | 8,775 |
Interest received | 99 | 170 | 43 |
Other finance income | 509 | 225 | 265 |
Finance income | 69,816 | 47,808 | 23,944 |
Finance costs: | |||
Exchange variation loss | (49,237) | (20,080) | (11,254) |
Loss on derivatives | (18,112) | (31,575) | (8,802) |
Interest and charges on loans and leases | (29,729) | (10,304) | (8,063) |
Bank guarantee expenses | (17) | (17) | (263) |
Commissions and brokerage | (2,598) | 0 | 0 |
Negative monetary variation | (3,092) | 0 | 0 |
Other finance costs | (1,263) | (1,285) | (1,473) |
Finance costs | (104,048) | (63,261) | (29,855) |
Net finance costs | R$ 34232 | R$ 15453 | R$ 5911 |
Income tax and social contrib_3
Income tax and social contribution (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax and social contribution | |||
Current income tax and social security contribution | R$ 95375 | R$ 66912 | R$ 39457 |
Deferred income tax | 10,958 | 1,775 | 10,238 |
Income tax and social contributions | R$ 84417 | R$ 65137 | R$ 29219 |
Income tax and social contrib_4
Income tax and social contribution (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax and social contribution | |||
Profit before income tax and social contribution | R$ 210374 | R$ 192791 | R$ 85788 |
Combined income tax and social contribution rate | 34.00% | 34.00% | 34.00% |
Tax using the Company’s domestic tax rate | R$ 71527 | R$ 65549 | R$ 29168 |
Interest on own capital | 2,138 | 1,469 | 0 |
Expected income tax expense and interest on own capital | (69,389) | (64,080) | (29,168) |
Tax incentives | 0 | 219 | 346 |
Impairment loss (intangible) | (6,864) | 0 | 0 |
Other permanent exclusions (additions) | (8,164) | (1,276) | (397) |
Income tax and social contributions | (84,417) | (65,137) | (29,219) |
Current | (95,375) | (66,912) | (39,457) |
Deferred | 10,958 | 1,775 | 10,238 |
Income Tax and Social Contribution Expenses | R$ 84417 | R$ 65137 | R$ 29219 |
Effective rate | 40.00% | 34.00% | 34.00% |
Income tax and social contrib_5
Income tax and social contribution (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax and social contribution | |||
Cancellation of the stock option plan | R$ 0 | R$ 0 | R$ 6244 |
Stock option plan compensation | (147) | 45 | 0 |
Total taxes recognized in equity | (147) | 45 | 6,244 |
Current | 0 | 8,698 | (2,556) |
Deferred | (147) | (8,653) | 8,800 |
Total taxes recognized in equity | R$ 147 | R$ 45 | R$ 6244 |
Income tax and social contrib_6
Income tax and social contribution (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax and social contribution | |||
Balance at beginning of period | R$ 15152 | R$ 24977 | R$ 6961 |
Recognition in equity | (147) | (8,653) | 8,800 |
Recognition in profit or loss | 10,958 | 1,775 | 10,238 |
Other | 5,294 | (4,956) | (611) |
Exchange variation effect | 732 | 2,010 | (411) |
Balance at end of period | 31,989 | 15,152 | 24,977 |
Deferred tax asset | 35,297 | 23,884 | 27,673 |
Deferred tax liabilities | (3,308) | (8,732) | (2,696) |
Provisions | |||
Income tax and social contribution | |||
Balance at beginning of period | 2,038 | 1,597 | 1,653 |
Recognition in equity | 0 | 0 | 0 |
Recognition in profit or loss | (437) | 107 | 350 |
Other | 0 | 0 | 0 |
Exchange variation effect | 76 | 334 | (406) |
Balance at end of period | 1,677 | 2,038 | 1,597 |
Deferred tax asset | 1,739 | 2,075 | 1,597 |
Deferred tax liabilities | (62) | (37) | 0 |
Salaries and welfare charges | |||
Income tax and social contribution | |||
Balance at beginning of period | 18,447 | 10,122 | 6,643 |
Recognition in equity | 0 | 0 | 0 |
Recognition in profit or loss | 6,354 | 7,236 | 3,447 |
Other | 0 | 0 | 0 |
Exchange variation effect | 968 | 1,090 | 32 |
Balance at end of period | 25,768 | 18,447 | 10,122 |
Deferred tax asset | 25,768 | 18,447 | 10,122 |
Deferred tax liabilities | 0 | 0 | 0 |
Lease | |||
Income tax and social contribution | |||
Balance at beginning of period | 2,168 | 1,583 | 0 |
Recognition in equity | 0 | 0 | 0 |
Recognition in profit or loss | (41) | 486 | 1,589 |
Other | 0 | 0 | 0 |
Exchange variation effect | (5) | 98 | (7) |
Balance at end of period | 2,122 | 2,168 | 1,583 |
Deferred tax asset | 2,122 | 2,168 | 1,583 |
Deferred tax liabilities | 0 | 0 | 0 |
Other items | |||
Income tax and social contribution | |||
Balance at beginning of period | (8,629) | (2,435) | (1,335) |
Recognition in equity | 0 | 0 | 0 |
Recognition in profit or loss | 2,630 | (1,119) | (493) |
Other | 6,913 | (4,956) | (611) |
Exchange variation effect | (307) | (119) | 4 |
Balance at end of period | 607 | (8,629) | (2,435) |
Deferred tax asset | 2,440 | 66 | 261 |
Deferred tax liabilities | (1,833) | (8,695) | (2,696) |
Indemnity on stock options plan | |||
Income tax and social contribution | |||
Balance at beginning of period | 214 | 13,304 | 0 |
Recognition in equity | (147) | (8,653) | 8,800 |
Recognition in profit or loss | (67) | (4,757) | 4,527 |
Other | 0 | 0 | 0 |
Exchange variation effect | 0 | 321 | (23) |
Balance at end of period | 0 | 214 | 13,304 |
Deferred tax asset | 0 | 214 | 13,304 |
Deferred tax liabilities | 0 | 0 | 0 |
Tax loss carry amount | |||
Income tax and social contribution | |||
Balance at beginning of period | 914 | 806 | 0 |
Recognition in equity | 0 | 0 | 0 |
Recognition in profit or loss | 2,519 | (178) | 818 |
Other | (1,618) | 0 | 0 |
Exchange variation effect | 0 | 286 | (11) |
Balance at end of period | 1,815 | 914 | 806 |
Deferred tax asset | 3,228 | 914 | 806 |
Deferred tax liabilities | R$ 1413 | R$ 0 | R$ 0 |
Earnings per share (Details)
Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | |||
Profit attributable to holders of common shares | R$ 125957 | R$ 127654 | R$ 56534 |
Denominator | |||
Weighted average number of basic shares held by shareholders | 121,777,128 | 119,960,383 | 122,312,323 |
Earnings per share – basic | R$ 1.03 | R$ 1.06 | R$ 0.46 |
Numerator | |||
Profit attributable to holders of common shares | R$ 125957 | R$ 127654 | R$ 56534 |
Denominator | |||
Weighted average number of diluted shares held by shareholders | 125,155,798 | 123,287,891 | 122,375,414 |
Net earnings per share – diluted | R$ 1.01 | R$ 1.04 | R$ 0.46 |
Earnings per share (Details 1)
Earnings per share (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share | |||
Weighted average common shares (basic) | 121,777,128 | 119,960,383 | 122,312,323 |
Effect of stock options when exercised | 3,378,670 | 3,327,508 | 63,091 |
Weighted average number of common shares | 125,155,798 | 123,287,891 | 122,375,414 |
Financial instruments and ris_3
Financial instruments and risk management (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets | ||
Financial assets, Amortized cost | R$ 1442369 | R$ 425076 |
Financial assets measured at FVTPL | 896 | 8,837 |
Total financial assets | 1,443,265 | 433,913 |
Financial liabilities | ||
Financial liabilities, Amortized cost | 1,018,940 | 198,613 |
Financial liabilities measured at FVTPL | 535 | 5,392 |
Total financial liabilities | 1,019,475 | 204,005 |
Suppliers and other payables | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 33,566 | 15,312 |
Financial liabilities measured at FVTPL | 0 | 0 |
Total financial liabilities | 33,566 | 15,312 |
Loans and borrowings | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 788,709 | 89,230 |
Financial liabilities measured at FVTPL | 0 | 0 |
Total financial liabilities | 788,709 | 89,230 |
Lease liabilities | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 81,888 | 75,228 |
Financial liabilities measured at FVTPL | 0 | 0 |
Total financial liabilities | 81,888 | 75,228 |
Accounts payable for business combination | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 85,726 | |
Financial liabilities measured at FVTPL | 0 | |
Total financial liabilities | 85,726 | |
Derivatives | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 0 | 0 |
Financial liabilities measured at FVTPL | 535 | 5,392 |
Total financial liabilities | 535 | 5,392 |
Contract liabilities | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 13,722 | 9,987 |
Financial liabilities measured at FVTPL | 0 | 0 |
Total financial liabilities | 13,722 | 9,987 |
Other liabilities | ||
Financial liabilities | ||
Financial liabilities, Amortized cost | 15,329 | 8,856 |
Financial liabilities measured at FVTPL | 0 | 0 |
Total financial liabilities | 15,329 | 8,856 |
Cash and cash equivalents | ||
Financial assets | ||
Financial assets, Amortized cost | 135,727 | 162,827 |
Financial assets measured at FVTPL | 0 | 0 |
Total financial assets | 135,727 | 162,827 |
Financial investments | ||
Financial assets | ||
Financial assets, Amortized cost | 798,786 | |
Financial assets measured at FVTPL | 0 | |
Total financial assets | 798,786 | |
Trade receivables | ||
Financial assets | ||
Financial assets, Amortized cost | 340,519 | 196,256 |
Financial assets measured at FVTPL | 0 | 0 |
Total financial assets | 340,519 | 196,256 |
Contract assets | ||
Financial assets | ||
Financial assets, Amortized cost | 134,388 | 50,625 |
Financial assets measured at FVTPL | 0 | 0 |
Total financial assets | 134,388 | 50,625 |
Derivatives | ||
Financial assets | ||
Financial assets, Amortized cost | 0 | 0 |
Financial assets measured at FVTPL | 896 | 8,837 |
Total financial assets | 896 | 8,837 |
Other assets | ||
Financial assets | ||
Financial assets, Amortized cost | 32,949 | 15,368 |
Financial assets measured at FVTPL | 0 | 0 |
Total financial assets | R$ 32949 | R$ 15368 |
Financial instruments and ris_4
Financial instruments and risk management (Details 1) - Foreign currency risk - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
US dollar | ||
Financial instruments and risk management | ||
Net exposure | R$ 725388 | R$ 88610 |
US dollar | Financial investments | ||
Financial instruments and risk management | ||
Net exposure | 798,786 | 0 |
US dollar | Suppliers and other payables | ||
Financial instruments and risk management | ||
Net exposure | (8,763) | (3,057) |
US dollar | Trade receivables | ||
Financial instruments and risk management | ||
Net exposure | 233,724 | 160,411 |
US dollar | Loans and borrowings | ||
Financial instruments and risk management | ||
Net exposure | (266,561) | (37,116) |
US dollar | Lease liabilities | ||
Financial instruments and risk management | ||
Net exposure | 32,159 | 30,307 |
US dollar | Derivatives | ||
Financial instruments and risk management | ||
Net exposure | 361 | (1,321) |
Other | ||
Financial instruments and risk management | ||
Net exposure | 5,589 | 3,315 |
Other | Financial investments | ||
Financial instruments and risk management | ||
Net exposure | 0 | 0 |
Other | Suppliers and other payables | ||
Financial instruments and risk management | ||
Net exposure | (722) | (540) |
Other | Trade receivables | ||
Financial instruments and risk management | ||
Net exposure | 7,273 | 3,855 |
Other | Loans and borrowings | ||
Financial instruments and risk management | ||
Net exposure | 0 | 0 |
Other | Lease liabilities | ||
Financial instruments and risk management | ||
Net exposure | 962 | 0 |
Other | Derivatives | ||
Financial instruments and risk management | ||
Net exposure | R$ 0 | R$ 0 |
Financial instruments and ris_5
Financial instruments and risk management (Details 2) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2021BRL (R$) | Dec. 31, 2021$ / shares | Dec. 31, 2021R$ / shares | |
Financial instruments and risk management | ||||||
Interest expenses | R$ 29729 | R$ 10304 | R$ 8063 | |||
Probable scenario (i) | ||||||
Financial instruments and risk management | ||||||
Effect on earnings (reduction) | (8,367) | |||||
Adverse Scenario (ii) | ||||||
Financial instruments and risk management | ||||||
Effect on earnings (reduction) | (12,763) | |||||
Remote Scenario (iii) | ||||||
Financial instruments and risk management | ||||||
Effect on earnings (reduction) | (17,160) | |||||
Foreign currency appreciation | Probable scenario (i) | ||||||
Net exchange variation on transactions | ||||||
Effect on earnings (increase) | 303 | |||||
Foreign currency appreciation | Adverse Scenario (ii) | ||||||
Net exchange variation on transactions | ||||||
Effect on earnings (increase) | 88 | |||||
Foreign currency appreciation | Remote Scenario (iii) | ||||||
Net exchange variation on transactions | ||||||
Effect on earnings (increase) | (357) | |||||
Foreign currency appreciation | US dollar | Probable scenario (i) | ||||||
Net exchange variation on transactions | ||||||
Exchange rate variation in the year | 5.3 | 5.3 | ||||
Amount of exchange rate variation in the year | (5,718) | |||||
Foreign currency appreciation | US dollar | Adverse Scenario (ii) | ||||||
Net exchange variation on transactions | ||||||
Exchange rate variation in the year | $ / shares | 5.5 | |||||
Amount of exchange rate variation in the year | (5,933) | |||||
Foreign currency appreciation | US dollar | Remote Scenario (iii) | ||||||
Net exchange variation on transactions | ||||||
Exchange rate variation in the year | $ / shares | 5.7 | |||||
Amount of exchange rate variation in the year | R$ 6378 | |||||
Short-term financial investments | Interest rate increase - CDI | ||||||
Financial instruments and risk management | ||||||
Net exposure | R$ 66007 | |||||
Short-term financial investments | Interest rate increase - CDI | Probable scenario (i) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 10.67% | |||||
Interest income | R$ 7043 | |||||
Short-term financial investments | Interest rate increase - CDI | Adverse Scenario (ii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 11.39% | |||||
Interest income | R$ 7518 | |||||
Short-term financial investments | Interest rate increase - CDI | Remote Scenario (iii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 12.11% | |||||
Interest income | R$ 7993 | |||||
Loans and borrowings | Interest rate increase - CDI | ||||||
Financial instruments and risk management | ||||||
Net exposure | 609,374 | |||||
Loans and borrowings | Interest rate increase - CDI | Probable scenario (i) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 10.67% | |||||
Interest expenses | R$ 65020 | |||||
Loans and borrowings | Interest rate increase - CDI | Adverse Scenario (ii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 11.39% | |||||
Interest expenses | R$ 69408 | |||||
Loans and borrowings | Interest rate increase - CDI | Remote Scenario (iii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 12.11% | |||||
Interest expenses | R$ 73795 | |||||
Loans and borrowings | Interest rate increase - Libor | ||||||
Financial instruments and risk management | ||||||
Net exposure | R$ 179333 | |||||
Loans and borrowings | Interest rate increase - Libor | Probable scenario (i) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 0.27% | |||||
Interest expenses | R$ 484 | |||||
Loans and borrowings | Interest rate increase - Libor | Adverse Scenario (ii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 0.54% | |||||
Interest expenses | R$ 968 | |||||
Loans and borrowings | Interest rate increase - Libor | Remote Scenario (iii) | ||||||
Financial instruments and risk management | ||||||
Interest rate per year (%) | 0.81% | |||||
Interest expenses | R$ 1452 |
Financial instruments and ris_6
Financial instruments and risk management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Hedge financial instruments (current and non-current) | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | R$ 896 | R$ 8837 |
Cash and cash equivalents | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | 135,727 | 162,827 |
Financial investments | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | 798,786 | 0 |
Trade receivables | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | 340,519 | 196,256 |
Contract assets | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | 134,388 | 50,625 |
Other receivables (current and non-current) | ||
Financial instruments and risk management | ||
Maximum credit risk exposure | R$ 32949 | R$ 15368 |
Financial instruments and ris_7
Financial instruments and risk management (Details 4) - Trade receivables, contract assets and other receivables - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments and risk management | ||
Total | R$ 507875 | R$ 262249 |
NAE (North America and Europe) | ||
Financial instruments and risk management | ||
Total | 297,430 | 180,522 |
North America | ||
Financial instruments and risk management | ||
Total | 287,992 | 179,943 |
Europe | ||
Financial instruments and risk management | ||
Total | 9,438 | 579 |
LATAM (Latin America) | ||
Financial instruments and risk management | ||
Total | 202,528 | 75,577 |
APJ (Asia, Pacific and Japan) | ||
Financial instruments and risk management | ||
Total | R$ 7917 | R$ 6150 |
Financial instruments and ris_8
Financial instruments and risk management (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments and risk management | ||
Financial liabilities, carrying amount | R$ 1019475 | R$ 204005 |
Loans and borrowings | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 788,709 | 89,230 |
Lease liabilities | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 81,888 | 75,228 |
Accounts payable for business combination | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 85,726 | |
Contract liabilities | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 13,722 | 9,987 |
Derivatives | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 535 | 5,392 |
Liquidity risk [member] | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 1,019,475 | 204,005 |
Financial liabilities, Contractual cash flow | 1,211,482 | 244,568 |
Liquidity risk [member] | Trade payables | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 33,566 | 15,312 |
Non-derivative financial liabilities, Contractual cash flow | 33,566 | 15,312 |
Liquidity risk [member] | Loans and borrowings | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 788,709 | 89,230 |
Non-derivative financial liabilities, Contractual cash flow | 974,942 | 111,779 |
Liquidity risk [member] | Lease liabilities | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 81,888 | 75,228 |
Non-derivative financial liabilities, Contractual cash flow | 87,662 | 93,242 |
Liquidity risk [member] | Accounts payable for business combination | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 85,726 | |
Non-derivative financial liabilities, Contractual cash flow | 85,726 | |
Liquidity risk [member] | Contract liabilities | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 13,722 | 9,987 |
Non-derivative financial liabilities, Contractual cash flow | 13,722 | 9,987 |
Liquidity risk [member] | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 15,329 | 8,856 |
Non-derivative financial liabilities, Contractual cash flow | 15,329 | 8,856 |
Liquidity risk [member] | Derivatives | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 535 | 5,392 |
Derivative financial liabilities, Contractual cash flow | 535 | 5,392 |
Liquidity risk [member] | 6 months or less | ||
Financial instruments and risk management | ||
Financial liabilities, Contractual cash flow | 212,812 | 126,366 |
Liquidity risk [member] | 6 months or less | Trade payables | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 33,566 | 15,312 |
Liquidity risk [member] | 6 months or less | Loans and borrowings | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 136,161 | 78,898 |
Liquidity risk [member] | 6 months or less | Lease liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 12,435 | 11,393 |
Liquidity risk [member] | 6 months or less | Accounts payable for business combination | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 1,064 | |
Liquidity risk [member] | 6 months or less | Contract liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 13,722 | 9,987 |
Liquidity risk [member] | 6 months or less | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 15,329 | 8,856 |
Liquidity risk [member] | 6 months or less | Derivatives | ||
Financial instruments and risk management | ||
Derivative financial liabilities, Contractual cash flow | 535 | 1,920 |
Liquidity risk [member] | 6- 12 months | ||
Financial instruments and risk management | ||
Financial liabilities, Contractual cash flow | 148,156 | 21,255 |
Liquidity risk [member] | 6- 12 months | Trade payables | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 6- 12 months | Loans and borrowings | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 88,045 | 7,313 |
Liquidity risk [member] | 6- 12 months | Lease liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 12,251 | 10,470 |
Liquidity risk [member] | 6- 12 months | Accounts payable for business combination | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 47,860 | |
Liquidity risk [member] | 6- 12 months | Contract liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 6- 12 months | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 6- 12 months | Derivatives | ||
Financial instruments and risk management | ||
Derivative financial liabilities, Contractual cash flow | 3,472 | |
Liquidity risk [member] | 1-2 years | ||
Financial instruments and risk management | ||
Financial liabilities, Contractual cash flow | 205,485 | 42,954 |
Liquidity risk [member] | 1-2 years | Trade payables | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 1-2 years | Loans and borrowings | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 171,022 | 23,901 |
Liquidity risk [member] | 1-2 years | Lease liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 22,284 | 19,053 |
Liquidity risk [member] | 1-2 years | Accounts payable for business combination | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 12,179 | |
Liquidity risk [member] | 1-2 years | Contract liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 1-2 years | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | 0 |
Liquidity risk [member] | 2-5 Years | ||
Financial instruments and risk management | ||
Financial liabilities, Contractual cash flow | 645,029 | |
Liquidity risk [member] | 2-5 Years | Trade payables | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | |
Liquidity risk [member] | 2-5 Years | Loans and borrowings | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 579,714 | |
Liquidity risk [member] | 2-5 Years | Lease liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 40,682 | |
Liquidity risk [member] | 2-5 Years | Accounts payable for business combination | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 24,623 | |
Liquidity risk [member] | 2-5 Years | Contract liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | |
Liquidity risk [member] | 2-5 Years | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | R$ 0 | |
Liquidity risk [member] | 2-6 Years | ||
Financial instruments and risk management | ||
Financial liabilities, Contractual cash flow | 53,993 | |
Liquidity risk [member] | 2-6 Years | Trade payables | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | |
Liquidity risk [member] | 2-6 Years | Loans and borrowings | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 1,667 | |
Liquidity risk [member] | 2-6 Years | Lease liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 52,326 | |
Liquidity risk [member] | 2-6 Years | Contract liabilities | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | 0 | |
Liquidity risk [member] | 2-6 Years | Other payables (current and non-current) | ||
Financial instruments and risk management | ||
Non-derivative financial liabilities, Contractual cash flow | R$ 0 |
Financial instruments and ris_9
Financial instruments and risk management (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments and risk management | ||
Financial liabilities, carrying amount | R$ 1019475 | R$ 204005 |
Financing Lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 0 | 2,200 |
Used Financing Lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 0 | 0 |
Not used Financing Lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 0 | 2,200 |
Bank credit lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 58,595 | 150,718 |
Used Bank credit lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | 11,161 | 89,197 |
Not used Bank credit lines | ||
Financial instruments and risk management | ||
Financial liabilities, carrying amount | R$ 47434 | R$ 61521 |
Financial instruments and ri_10
Financial instruments and risk management (Details 8) R$ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$)R$ / shares | Dec. 31, 2021USD ($)R$ / shares | Dec. 31, 2020BRL (R$)R$ / shares | Dec. 31, 2020USD ($)R$ / shares | |
NDF | ||||
Financial instruments and risk management | ||||
Fair value | R$ 17 | R$ 1321 | ||
NDF | February 25, 2022 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 3148 | $ 560 | ||
Contracted rate | R$ / shares | 5.622 | 5.622 | ||
Market rate | R$ / shares | 5.3459 | 5.3459 | ||
Fair value | R$ 17 | |||
NDF | June 15, 2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 17064 | $ 3,100 | ||
Contracted rate | R$ / shares | 5.4928 | 5.4928 | ||
Market rate | R$ / shares | 5.4763 | 5.4763 | ||
Fair value | R$ 968 | |||
NDF | April 15, 2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 4508 | $ 800 | ||
Contracted rate | R$ / shares | 5.6345 | 5.6345 | ||
Market rate | R$ / shares | 5.1909 | 5.1909 | ||
Fair value | R$ 353 | |||
Zero-cost collar | ||||
Financial instruments and risk management | ||||
Fair value | (25) | 2,124 | ||
Zero-cost collar | Call option | ||||
Financial instruments and risk management | ||||
Fair value | 494 | (1,858) | ||
Zero-cost collar | Call option | 01/21/2021 - 01/17/2022 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 4900 | $ 875 | ||
Market rate | R$ / shares | 5.5563 | 5.5563 | ||
Fair value | R$ 298 | |||
Zero-cost collar | Call option | 02/25/2021 - 02/25/2022 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 2909 | $ 490 | ||
Market rate | R$ / shares | 5.469 | 5.469 | ||
Fair value | R$ 196 | |||
Zero-cost collar | Call option | 15/01 - 15/06/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 587 | $ 1,800 | ||
Market rate | R$ / shares | 5.677 | 5.677 | ||
Fair value | R$ 12 | |||
Zero-cost collar | Call option | 31/05 - 15/12/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 786 | $ 2,800 | ||
Market rate | R$ / shares | 5.5656 | 5.5656 | ||
Fair value | R$ 569 | |||
Zero-cost collar | Call option | 15/04 - 30/11/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 2161 | $ 6,900 | ||
Market rate | R$ / shares | 5.5116 | 5.5116 | ||
Fair value | R$ 1277 | |||
Zero-cost collar | Put option | ||||
Financial instruments and risk management | ||||
Fair value | (519) | 3,982 | ||
Zero-cost collar | Put option | 01/21/2021 - 01/17/2022 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 4900 | $ 875 | ||
Market rate | R$ / shares | 5.8257 | 5.8257 | ||
Fair value | R$ 349 | |||
Zero-cost collar | Put option | 02/25/2021 - 02/25/2022 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 2909 | $ 490 | ||
Market rate | R$ / shares | 5.649 | 5.649 | ||
Fair value | R$ 170 | |||
Zero-cost collar | Put option | 15/01 - 15/06/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 587 | $ 1,800 | ||
Market rate | R$ / shares | 5.48 | 5.48 | ||
Fair value | R$ 512 | |||
Zero-cost collar | Put option | 31/05 - 15/12/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 786 | $ 2,800 | ||
Market rate | R$ / shares | 5.2425 | 5.2425 | ||
Fair value | R$ 862 | |||
Zero-cost collar | Put option | 15/04 - 30/11/2021 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 2161 | $ 6,900 | ||
Market rate | R$ / shares | 5.3388 | 5.3388 | ||
Fair value | R$ 2608 | |||
Interest rate swap | ||||
Financial instruments and risk management | ||||
Fair value | 403 | |||
Interest rate swap | 07/16/2026 | ||||
Financial instruments and risk management | ||||
Nominal value | R$ 152100 | $ 30,000 | ||
Floating rate receivable | 3-month LIBOR | |||
Fixed rate payable | 307.00% | 307.00% | ||
Fair value | R$ 403 |
Financial instruments and ri_11
Financial instruments and risk management (Details 9) - Level 2 - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | R$ 870236 | R$ 161013 |
Net financial assets (liabilities) at fair value | 1,062,243 | 201,576 |
Derivatives | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | 361 | 3,445 |
Net financial assets (liabilities) at fair value | 361 | 3,445 |
Non-Deliverable Forward - NDF | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | (17) | 1,321 |
Net financial assets (liabilities) at fair value | (17) | 1,321 |
Call and put option term | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | 403 | 2,124 |
Net financial assets (liabilities) at fair value | 403 | 2,124 |
Interest rate swap | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | (25) | 0 |
Net financial assets (liabilities) at fair value | (25) | 0 |
Non-derivatives | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | 870,597 | 164,458 |
Net financial assets (liabilities) at fair value | 1,062,604 | 205,021 |
Lease liabilities | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | 81,888 | 75,228 |
Net financial assets (liabilities) at fair value | 87,662 | 93,242 |
Loans and borrowings | ||
Financial instruments measured at fair value | ||
Net financial assets (liabilities) at carrying value | 788,709 | 89,230 |
Net financial assets (liabilities) at fair value | R$ 974942 | R$ 111779 |
Financial instruments and ri_12
Financial instruments and risk management (Details 10 - Textuals 1) - Dec. 31, 2021 | Total | $ / shares | R$ / shares |
Probable scenario (i) | |||
Financial instruments and risk management | |||
Rate assumed from difference between probable rate and remote rate | 0.50% | ||
Foreign currency appreciation | US dollar | Probable scenario (i) | |||
Financial instruments and risk management | |||
Exchange rate variation in the year | 5.3 | 5.3 | |
Foreign currency appreciation | US dollar | Adverse Scenario (ii) | |||
Financial instruments and risk management | |||
Exchange rate variation in the year | 5.5 | ||
Short-term financial investments | Interest rate increase - CDI | Probable scenario (i) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 10.67% | ||
Short-term financial investments | Interest rate increase - CDI | Adverse Scenario (ii) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 11.39% | ||
Loans and borrowings | Interest rate increase - CDI | Probable scenario (i) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 10.67% | ||
Loans and borrowings | Interest rate increase - CDI | Adverse Scenario (ii) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 11.39% | ||
Loans and borrowings | Interest rate increase - Libor | Probable scenario (i) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 0.27% | ||
Loans and borrowings | Interest rate increase - Libor | Adverse Scenario (ii) | |||
Financial instruments and risk management | |||
Interest rate per year (%) | 0.54% |
Financial instruments and ri_13
Financial instruments and risk management (Details 11 - Textuals 2) $ in Thousands | Dec. 31, 2021BRL (R$)R$ / shares | Dec. 31, 2021USD ($)R$ / shares | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Financial instruments and risk management | |||||
Cash and cash equivalents | R$ 135727000 | R$ 162827000 | R$ 79500000 | R$ 77079000 | |
Financial investments | 798,786,000 | $ 143,139 | 0 | ||
NDF | |||||
Financial instruments and risk management | |||||
Purchase and sale agreement for derivative financial instruments, fair value | (17,000) | 1,321,000 | |||
Zero-cost collar | |||||
Financial instruments and risk management | |||||
Purchase and sale agreement for derivative financial instruments, fair value | R$ 25000 | R$ 2124000 | |||
Net premium of contracted derivatives | R$ / shares | 0 | 0 | |||
Revolving credit facility | |||||
Financial instruments and risk management | |||||
Credit facility, maximum borrowing capacity | R$ 58595000 | $ 10,500 | |||
Revolving credit facility | Brazilian real per US dollar | |||||
Financial instruments and risk management | |||||
Exchange rate variation in the year | 5.5805 |
Related parties (Details - Text
Related parties (Details - Textuals) - BRL (R$) R$ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related parties | |||
Additional post-employment obligation | R$ 0 | ||
Other long-term benefits | 0 | ||
Executive key management | |||
Related parties | |||
Direct compensation to key management personnel related to social charges and short-term benefits | 11,096 | R$ 9519 | |
Amount paid for cancellation of the Group's stock option plan | R$ 628 | 43,354 | |
Compensation to key management personnel for stock option plan, recognized in the statement of profit or loss | R$ 99 | R$ 22 |
Operating segments (Details)
Operating segments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating segments | |||
Total (Note 23) | R$ 1444380 | R$ 956519 | R$ 677133 |
NAE (North America and Europe) | |||
Operating segments | |||
Total (Note 23) | 699,878 | 471,763 | 309,365 |
North America | |||
Operating segments | |||
Total (Note 23) | 684,558 | 451,999 | 284,321 |
Europe | |||
Operating segments | |||
Total (Note 23) | 15,320 | 19,764 | 25,044 |
LATAM (Latin America) | |||
Operating segments | |||
Total (Note 23) | 694,334 | 435,987 | 332,692 |
APJ (Asia, Pacific and Japan) | |||
Operating segments | |||
Total (Note 23) | R$ 50168 | R$ 48769 | R$ 35106 |
Operating segments (Details 1)
Operating segments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue by client concentration | |||
Revenue | R$ 1444380 | R$ 956519 | R$ 677133 |
Top client | |||
Revenue by client concentration | |||
Revenue | 283,311 | 190,599 | 97,248 |
Top 10 clients | |||
Revenue by client concentration | |||
Revenue | R$ 913890 | R$ 644722 | R$ 417547 |
Operating segments (Details 2)
Operating segments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating segments | |||
Non-current assets, except deferred taxes | R$ 878947 | R$ 135378 | R$ 127230 |
Brazil | |||
Operating segments | |||
Non-current assets, except deferred taxes | 837,362 | 97,887 | 93,016 |
United States of America | |||
Operating segments | |||
Non-current assets, except deferred taxes | 38,417 | 36,010 | 32,612 |
Japan | |||
Operating segments | |||
Non-current assets, except deferred taxes | 176 | 398 | 1,055 |
China | |||
Operating segments | |||
Non-current assets, except deferred taxes | 2,239 | 776 | 545 |
Canada | |||
Operating segments | |||
Non-current assets, except deferred taxes | 284 | 196 | 0 |
Portugal | |||
Operating segments | |||
Non-current assets, except deferred taxes | 387 | 0 | 0 |
Other countries | |||
Operating segments | |||
Non-current assets, except deferred taxes | R$ 82 | R$ 111 | R$ 2 |
Operating segments (Details 3)
Operating segments (Details 3) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Top client | |||
Revenue by client concentration | |||
Percentage of total net revenues | 20.00% | 20.00% | 8.00% |
Subsequent events (Details - Te
Subsequent events (Details - Textuals) R$ in Thousands, $ in Millions | Jan. 27, 2022BRL (R$)shares | Jan. 27, 2022USD ($)shares | Dec. 31, 2021BRL (R$) |
Disclosure of non-adjusting events after reporting period [line items] | |||
Maximum amount of earn-out clause based on future performance | R$ | R$ 30000 | ||
Business combination | Somo Global Ltd | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Cash | R$ 341000 | $ 63 | |
Maximum amount of earn-out clause based on future performance | R$ 70000 | $ 13 | |
Business combination | Somo Global Ltd | Class A common shares | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares issued | shares | 225,649 | 225,649 |