Sinqia S A : Dados Econômico-Financeiros

4Q21 Earnings Release

Results webcast in Portuguese with

simultaneous translation into

English

03.18.2022 (Friday)

11 a.m. (Brasília) / 10 a.m. (New York) /

2 p.m. (London)

Webcast:Register here

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Price: R$16.10

Market Cap.: R$1,415 million

Number of shares: 87,941,972

Base 03.17.2022

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Investor Relations

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[phone]

[e-mail]

ri.sinqia.com.br/en/

4Q21 | Earnings Release

São Paulo, March 17, 2022. Sinqia S.A. (B3: SQIA3) ("Company"), a leading provider of technology for the financial system, announces its consolidated results for the fourth quarter of 2021 ("4Q21") and the fiscal year ended December 31, 2021 ("2021").

Highlights

Consolidation Strategy

We announced the acquisition of NewCon and assumed a dominant position in Consortium;

We announced the acquisition of LOTE45 and reached a relevant position in Funds;

We closed the acquisition of Mercer Seguridade's pension management business and reached an outstanding position in Pension;

Innovation Strategy

We announced an investment in Data Rudder by Torq Ventures, a startup focused on data analysis;

Software ARR

Pro forma1 of R$446.4 million (+155% vs. 4Q20), 4Q21 of R$316.0 million (+80% vs. 4Q20);

Net Revenues

Pro forma2 of R$552.2 million (+163% vs. 2020), 2021 of R$352.6 million (+68% vs. 2020);

Adjusted EBITDA

Pro forma3 of R$149.2 million (+394% vs. 2020), 2021 of R$70.5 million (+134% vs. 2020);

Adjusted EBITDA Margin

Pro forma3 of 27.0% (+12.6p.p. vs. 2020), 2021 de 20,0% (+5,6p.p. vs. 2020).

Legal Disclaimer

This material was prepared by Sinqia S.A. ("Sinqia") (B3: SQIA3) and may contain forward-looking statements that express management's expectations, beliefs, and/or projections of future events or results. These forward-looking statements involve risks and uncertainties that could cause results to differ materially from our projections. Such forward-looking statements are based on information currently available related to Sinqia and Sinqia's operating sector and are not intended to be comprehensive or provide advice to potential investors, so readers should not rely exclusively on the information contained herein. The investment in Sinqia's securities involves certain risks. Before making any investment decision, potential investors should carefully analyze all the information contained in the Reference Form, in the financial statements accompanied by the respective notes, and, if applicable, in the offering documents. The business, financial condition, operating results, cash flow, liquidity, and/or prospects may be adversely affected by currently known or unknown risk factors. This document does not constitute an offer to sell or a solicitation to buy any securities of Sinqia.

1. Sinqia's 4Q21 ARR added to NewCon, LOTE45 and Mercer Seguridade's 4Q21 ARR
2. Sinqia's 4Q21 Run Rate Net Revenues plus 2021FY Net Revenues from NewCon, LOTE45 and Mercer Seguridade
3. Considers Sinqia's 4Q21 Run Rate Adjusted EBITDA plus 2021FY Adjusted EBITDA from NewCon, LOTE45 and Mercer Seguridade

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	4Q21 | Earnings Release
SUMMARY
MESSAGE FROM MANAGEMENT ...........................................................................................	4
RECENT EVENTS........................................................................................................................	6
OPERATIONAL PERFORMANCE ............................................................................................	8
Software ARR...........................................................................................................................................................................................	8
Number of Customers ............................................................................................................................................................................	8
FINANCIAL PERFORMANCE ...................................................................................................	9
Net Revenue.............................................................................................................................................................................................	9
Recurring Revenues................................................................................................................................................................................	9
Costs........................................................................................................................................................................................................	10
Gross Profit and Gross Margin ............................................................................................................................................................	10
Software Unit ..........................................................................................................................................................................................	11
Services Unit ..........................................................................................................................................................................................	13
Operating Expenses..............................................................................................................................................................................	15
EBITDA and Adjusted EBITDA .............................................................................................................................................................	16
Financial Result .....................................................................................................................................................................................	17
Income Tax and Social Contribution..................................................................................................................................................	18
Net Income .............................................................................................................................................................................................	18
FINANCIAL POSITION.............................................................................................................	20
Gross Cash.............................................................................................................................................................................................	20
Gross Debt .............................................................................................................................................................................................	20
Net Cash (Debt) ....................................................................................................................................................................................	20
CAPITAL MARKET ...................................................................................................................	21
Stock Performance ...............................................................................................................................................................................	21
EXHIBIT - FINANCIAL STATEMENTS ................................................................................	23
Exhibit I - Income Statement (Consolidated) .................................................................................................................................	23
Exhibit II - Balance Sheet (Consolidated)........................................................................................................................................	25

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4Q21 | Earnings Release

MESSAGE FROM MANAGEMENT

Today we report the results for 2021. We have made significant progress in our objective of building the most integrated technology ecosystem for the financial sector in Brazil: as part of the consolidation plan, we carried out 5 acquisitions, and within the scope of the innovation, we made 6 investments. Over and above that, we delivered excellent financial results, with significant revenue growth (+67.9%) and adjusted EBITDA margin gain (+6.6 p.p.). Certainly 2021 was an exceptional year for Sinqia, but 2022 will be even better - much better - and we will explain why in this message.

We started 2021 committed to the consolidation plan and made significant progress on multiple fronts. On one side, we created a new business unit, Sinqia Digital, focused on promoting digital transformation in the financial sector. This unit results from the acquisition of 3 companies - Simply (digital onboarding), FEPWeb (digital signature), and QuiteJá (credit recovery). Its constitution will be a prime catalyst for Sinqia's revenue growth and margin gains in the coming years.

In Parallel, we reinforced the existing business units. In Funds, we acquired LOTE45 in early 2022. In Pension, we acquired Mercer Brasil's pension management business (Mercer Seguridade). In Consortium, we acquired Newcon. These three stories have something in common: a few years after entering these segments, Sinqia took the lead and became a company with the most integrated product portfolio on the market, as well as the most expressive installed base. These are relevant differences that are difficult to replicate.

Furthermore, we were also committed to the innovation agenda. Last January, we launched Torq Ventures, our corporate venture capital program, which celebrated its first anniversary, with many reasons to celebrate. During this period, we made a collaboration agreement with Distrito, invested in Darwin and 3 other venture capital funds, Astella, Canary, and Parallax, invested in 3 startups and made 2 commercial partnerships with Sensedia and TechRules. Including indirect investments, the Torq Ventures' portfolio already has more than 60 startups, and we're just getting started. In this short period, these assets have already presented a positive performance in financial terms.

All this was possible because of Sinqia was capitalized capitalization. We carried out a R$250 million debentures offering (R$150 million paid-in), and due to the rapid progress of the consolidation plan, we also carried out a R$400 million secondary stock offering, totaling R$550 million. These resources were efficiently and quickly used. Regarding the stock offering, we delivered a plan designed for 18 months in 4 months because we were ready to take advantage of the various opportunities available in our market.

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4Q21 | Earnings Release

These achievements regarding the consolidation plan and innovation, in addition to the revenue growth and margin gains in the business, emerged as record results presented in 2021. In this sense it is important to emphasize that the numbers referent to 2021 still do not include acquisitions closed in early 2022: NewCon, LOTE45, and Mercer Seguridade, which will be consolidated in the 1Q22 results, which will release in May, 2022.

Therefore, we reaffirm that 2021 was an excellent year for the Company and that2022 will be even better. We will reap the results of the acquisitions closed at the beginning of the year, and that alone would be enough to, once again, place Sinqia on a new level of delivery, considering the sum of net revenue unaudited from these acquisitions from the last twelve months ended on December 2021 is R$139.7 million.

For that reason, our starting point in 2022 will be a net revenue of approximately R$552.2 million (+56.6% vs. 2021), which could be even better with the initiatives that will produce more organic and inorganic growth. It is worth noting that in a year that started marked by instability caused by political and economic events, having guaranteed growth is a privilege.

Lastly, we will continue to work on integrating and expanding our product portfolio, to constantly improve customer satisfaction, maintain the best team of professionals in financial technology, deliver the result from acquisitions made, and continue consolidating the market with new acquisitions.

We are proud of everything we delivered in 2021 and confident with what awaits us in 2022: a growing and more relevant Sinqia, making the financial market pulsate!

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