Caldwell Partners International : F'22 Q3 MD&A

THE CALDWELL PARTNERS

INTERNATIONAL INC

MANAGEMENT DISCUSSION AND ANALYSIS

Third Quarters Ended May 31, 2022 and 2021 (unaudited)

79 Wellington Street West

TD South Tower

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

Management Discussion and Analysis ("MD&A")

(Expressed in CAD $000s, except per share amounts)

PRESENTATION

The following discussion and analysis, prepared on July 13, 2022 should be read in conjunction with the consolidated interim financial statements with related notes for the quarter ended May 31, 2022. Unless otherwise noted, all currency amounts are provided in thousands of Canadian dollars (except per share amounts). All references to quarters or years are for the fiscal periods unless otherwise noted. Unless otherwise noted as a non- GAAP financial measure or other operating measure, financial results are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this document are based on current expectations subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "may," "will," "likely," "estimates," "potential," "continue" or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements.

We are subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, the impact of pandemic diseases, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies; foreign currency exchange rate fluctuations; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; reliance on software that we license from third parties; reliance on third-party contractors for talent acquisition support; our ability to successfully recover from a disaster or other business continuity issues; adverse governmental and tax law rulings; successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses; volatility of the market price and volume of our common shares; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; affiliation agreements may fail to renew or affiliates may be acquired; the impact on profitability from marketable securities valuation fluctuations;

Caldwell - Management Discussion & Analysis

2

increasing dependence on third parties for the execution of critical functions; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the "Risk Factors" section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements. Management's assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

COMPANY DESCRIPTION

The Caldwell Partners International Inc. (the "Company") is a technology-powered talent acquisition firm specializing in recruitment at all levels. We leverage the latest innovations in artificial intelligence to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas, allowing us to have a more significant impact on our clients' long-term success. Services include candidate research and sourcing through to full lifecycle 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.

We operate through two distinct segments - retained executive search and analytics solutions are conducted as Caldwell, and on-demand talent acquisition augmentation solutions are conducted as IQTalent Partners or IQTP. Collectively, we believe talent transforms, and our purpose is to enable organizations to thrive and succeed by helping them identify, recruit and retain the best people.

The Company's common shares are listed on the Toronto Stock Exchange (TSX: CWL) and

also trade on the OTCQX Market in the United States (OTCQX: CWLPF). Please visit our website at www.caldwell.com for further information.

Caldwell - Management Discussion & Analysis

3

BUSINESS SEGMENTS

Identification of Segments

Prior to our acquisition of IQTalent Partners, Inc. ("IQTP") on December 31, 2020, we operated with one brand and our segments were identified geographically as the United States, Canada and Europe. With the acquisition of IQTP, we changed our internal and external reporting and performance measurements and redefined our segments. The services Caldwell offers, the nature of its clients and its pricing and delivery model are uniform across geographies, and those geographies are largely interconnected in economic cycles. We therefore measure the key metrics and reporting of Caldwell as one segment. IQTP's business is managed and measured separately from Caldwell with unique branding, operations and pricing. As a result, we now operate with two distinct business segments differentiated by brand, services, operations and pricing models. The segment presentation of historical periods has been restated.

The following chart explains the spectrum of services we offer our clients:

Together, Caldwell and IQTP are transforming the world of talent. IQTP's unique service model and innovative use of technology - paired with Caldwell's expertise, network and resources - allows us to have a greater impact on our clients' long-term success.

Caldwell - Management Discussion & Analysis

4

Segment Operating Characteristics

Revenue

Caldwell

Caldwell operates with partners in Canada, the United States and Europe, with functional currencies being the Canadian dollar, US dollar and British pound. We take pride in delivering an unmatched level of service and expertise to our clients from 17 locations throughout the world, including Atlanta, Calgary, Charleston, Chicago, Dallas, Houston, London, Los Angeles, Miami, Nashville, New York, Philadelphia, San Francisco, Stamford, Toronto, Vancouver, Zurich. Effective March 7, 2022 we service the Australia/New Zealand region through a non-owned international affiliation arrangement with Johnson Advisory Pty Limited operating as Johnson Partners.

Caldwell's executive search revenue and operating income are difficult to predict and have historically varied significantly from quarter to quarter. There is no discernible seasonality in our business on a quarterly basis, although historically, we have usually seen lower revenue in quarters one and two compared to quarters three and four.

Our capacity to generate revenue increases with the number of partners and affiliations in our network and depends on the fees we are able to charge and our partners' productivity, which is influenced significantly by competition and general economic hiring conditions. Additionally, given our relatively small partner base, we have limited diversification, and consequently, results may fluctuate significantly from quarter to quarter. We are a fully- retained executive search segment and bill our clients based on a fee of approximately one- third of a placed executive's compensation.

IQTP

IQTP operates from its 23,000 square-foot center of excellence office location in Nashville, TN, while also leveraging a virtual, work-from-home workforce based primarily across the United States. IQTP's functional currency is the US dollar.

IQTP provides on-demand talent acquisition augmentation as a managed service to our clients, who are typically in-house talent acquisition departments. We provide research, sourcing and full lifecycle recruiting services at the professional level, with revenue generated per labour hour. IQTP's clients tend to be organizations with ongoing needs. As a result, client relationships and services are more recurring and more predictable than executive search. However, services are on-demand with no long-term contractual commitments and can vary significantly from quarter to quarter with economic cycles or events as experienced with the global pandemic. While monthly and quarterly revenue fluctuates based on the number of working business days, there is no discernible seasonality in the IQTP business on a quarterly basis beyond the number of business days available. There are 251 business days in fiscal 2022 that fall 62 days (24.7%) in Q1, 59 days (23.5%) in Q2, 65 days (25.9%) in Q3 and 65 days (25.9%) in Q4.

Caldwell - Management Discussion & Analysis

5