Caldwell Partners International : 2022 Annual Report

TRANSFORMING THE WORLD OF TALENT

ANNUAL REPORT 2022

WE BELIEVE TALENT TRANSFORMS

Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent

• the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.

Caldwell Partners' common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF).

www.caldwell.com

@CaldwellSearch

Dear Shareholders, Clients, and Friends:

Fiscal 2022 was an exceptional year in Caldwell's history - one that saw shattered records for revenue and profit, amidst our highest client satisfaction scores to date. It was a year of marked revenue and profit achievement and overall execution excellence, as we continue our transformation into a high growth business.

The year began with strong and growing business activity in both business segments, at levels previously unseen at either company. This growth peaked shortly after mid-year yet remained solid and above historical averages through the fourth quarter, despite sequential softness.

The Caldwell executive search team generated $104.6 million in revenue, an 8% increase over the previous year. The surge in search volume we saw in Fiscal 2021 continued through the first three quarters, with partners averaging 14.3 assignments each - well above the historical average of 12 assignments per partner. We saw softer demand in the fourth quarter, and the early booking trend to begin Fiscal 2023 suggests search volumes per partner returning closer to our historical average. Partner recruitment remains a priority, and we continue to add new partners to our existing record partner headcount to drive revenue performance.

The IQTalent team saw sustained and significant growth in demand for its services since pandemic lows, generating $51.6 million - a tremendous 122% increase over the prior year. IQTalent's clients are weighted toward the technology sector, which has seen strong economic headwinds and market performance challenges since late summer. In light of clients significantly pulling back on their hiring and expansion plans, we have taken quick action to reduce and align our staff with business levels. While a difficult environment in the near-term, IQTalent's flexible on-demand pricing model coupled with our innovative use of AI technology has resonated with clients and we remain excited about our expansion into the future.

Fiscal 2022 was also another year of innovation and investment in our processes and the spectrum of services we are able to provide to our clients, as we strive to disrupt the search industry. We acquired behavioral and cognitive psychometrics consultancy Applied Behavioral Academy, establishing Caldwell Analytics as a Master Certified Trainer of The Predictive Index, strengthening the ability to help clients align talent and business strategies. We also made an investment in Skyminyr, an early-stage company with an artificial intelligence software platform designed to deliver the power of human capital intelligence through a combination of behavioral analytics, sector mapping, and relationship intelligence.

79 Wellington Street West

TD South Tower

Suite 2410, P.O. Box 75 Toronto, ON M5K 1E7 [phone]

Caldwell - Shareholders Letter

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We're confident about the strength of our company, our team, our service offerings, our balance sheet, and our future. Our clients appreciate our ability to provide seamless support for their talent acquisition needs at all levels, and by continuing to diversify our mix of products and services and identify opportunities to cross-collaborate between our two business segments, we expect to amplify our success in the long-term. We also continue to seek out strategic business and technology acquisition opportunities that align with our client-driven talent offerings. Our most recent acquisition of The Counsel Network has been a terrific addition to our Caldwell service offering in Canada, bringing a high- caliber group of search professionals focused on legal roles for law firms and corporate in- house functions.

As always, we are grateful to the entire Caldwell/IQTalent team - their dedication to our clients, our candidates, and to each other is what drives this company forward every day. We couldn't be prouder.

Yours sincerely,

Elias Vamvakas	John Wallace
Chair of the Board	Chief Executive Officer

Caldwell - Shareholders Letter

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THE CALDWELL PARTNERS INTERNATIONAL INC

For the years ended August 31, 2022 and August 31, 2021

Caldwell - Management Discussion & Analysis

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