Slide 1: 1Q21 Earnings Presentation
1 1Q21 Earnings Presentation
Slide 2: Important Disclosure
2 Important Disclosure IN REVIEWING THE INFORMATION CONTAINED IN THIS PRESENTATION, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER . THIS INFORMATION IS BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT . This presentation is prepared by XP Inc
Slide 3: Index
3 Index 01 Banking Update 02 1Q21 KPIs and Financials 03 Q&A 04 Opening Remarks
Slide 4: Opening Remarks
1 Opening Remarks
Slide 5: Highlights
5 Highlights ▪ Strongest Quarter Ever: Records in all KPIs and Financials ▪ Cost discipline and efficiency as a competitive advantage ▪ Operating leverage enabling reinvestments in the platform 1Q21 Results Governance ▪ Elimination of Material Weaknesses within the first year as listed company Banki
Slide 6: Banking Update
2 Banking Update
Slide 7: Banking: Recent Developments
7 Banking: Recent Developments Solid deliveries over the last twelve months COLLATERALIZED CREDIT CREDIT CARD MARGIN LOANS ▪ R $ 5 . 0 billion book (Individuals and Companies) ▪ Conservative approach to risk aiming zero NPL ▪ Lower capital vs traditional credit lines ▪ XP VISA INFINITY card official
Slide 8: Banking: What's Next
8 Banking: What’s Next Connecting the dots to execute an ambitious business plan and grow our revenue SAM (serviceable available market) with expanded product offering INDIVIDUALS (MASS AFFLUENT AND PRIVATE) • Scale existing products: Investments, FX, Collateralized Credit, Derivatives • Scale Energ
Slide 9: 1Q21 KPIs and Financials
3 1Q21 KPIs and Financials
Slide 10: 1Q21 KPIs summary
10 Total AuC R $ 715 Billion +96% YoY Collateralized Credit Portfolio R $ 4 . 7 Billion +74x YoY Gross Revenue R $ 2 . 8 Billion +50% YoY Active Clients 3 . 0 Million +47% YoY Credit Card TPV R $ 505 Million Adjusted EBITDA 2 R $ 1 . 0 Billion +75% YoY DARTS 3 . 2 Million NPL Ratio 1 0 % Adjusted Ne
Slide 11: KPIs: AUC, Active Clients and Net Inflows
11 KPIs AUC, Active Clients and Net Inflows Assets Under Custody (AUC) (in R$ bn) Net Inflow (in R$ bn) 2,993 1Q20 1Q21 2,039 +47% Active Clients (‘000) Net Inflow Adj. by Extraordinary Inflows (in R$ bn) 366 715 252 Market Appreciatio n 1Q20 97 Net Inflow 1Q21 +96% 29 117 37 69 3Q20 2Q20 4Q20 1Q21
Slide 12: Revenue and Breakdown
12 Revenue and Breakdown Total Gross Revenues (in R$ mn) Highlights ▪ Strong growth leading to a new record, driven mainly by the Retail business, with 90 % of growth contribution . RETAIL INSTITUTIONAL ISSUER SERVICES DIGITAL CONTENT 75 % 11 % 8 % 1 % Other Revenue represented 5% of Total Gross Rev
Slide 13: Retail Revenue and Take Rate
13 Retail Revenue and Take Rate Resili ent monetization and strong trading volumes, following client net adds and net inflows LTM Take Rate (LTM Retail Revenue / Average AUC) Retail Revenue (in R$ mn) 3Q18 1.5% 1.4% 4Q18 1.4% 2Q19 1.3% 1.3% 1Q19 1.3% 3Q19 1.3% 2Q20 4Q19 1.3% 1Q20 1.3% 1.3% 3Q20 4Q20
Slide 14: Adjusted EBITDA and Margin
14 1,043 1Q20 1Q21 595 +75% Highlights ▪ Adjusted EBITDA grew 75 % , from R $ 595 million to R $ 1 , 043 million . The growth was driven by ( 1 ) increases in the top line, mainly coming from Retail ; ( 2 ) better COGS as a percentage of Net Revenues, and consequently higher gross margins and ( 3 )
Slide 15: Adjusted Net Income and Margin
15 1Q20 1Q21 415 846 +104% +104% +75% Adj. Net Income +104% Adj. EBITDA Gross Revenue +75% Adjusted Net Margin Adjusted Net Income and Margin Net margin expansion driven by strong growth in Retail, operating leverage and a lower tax rate Adjusted Net Income (in R$ mn) Note: See appendix for a reconc
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Slide 17: Investors Relations
17 Investors Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 18: Appendix
Appendix
Slide 19: COGS and SG&A
19 579 841 1Q21 1Q20 +45% 29.1% 32.3% % of Net Revenue 561 765 1Q20 1Q21 +36% COGS and SG&A Gross margin expansion and efficiency gains despite investments in the platform COGS (in R$ mn) Operating Expenses (in R$ mn) Highlights ▪ Year - over - year gross margin expansion, despite the impact of long
Slide 20: Institutional and Issuer Services
20 Institutional and Issuer Services Institutional benefited from volumes and Issuer Services from market window Issuer Services Revenue (in R$ mn) Institutional Revenue (in R$ mn) 331 294 1Q21 1Q20 - 11% 1Q20 1Q21 132 234 +77% Highlights ▪ Despite the growth in core trading desks in 1 Q 21 , the sa
Slide 21: KPIs: Average Trades and Market Share
21 KPIs Average Trades and Market Share Retail Equity DARTs (million) 1Q21 1Q20 1.7 3.2 91% XP Inc. Retail Equity Market Share Mar - 21 33% Custody Traded Volume 56%
Slide 22: Non-GAAP Financial Information: Normalized ETR
22 Non - GAAP Financial Information A low ETR driven by ( i ) corporate structure and (ii) share based compensation expenses 22 (1) Share - Based Compensation and Offering expenses effects on EBT and Income Tax (2) A portion of Total Revenue and Income generated is recognized already net of income t
Slide 23: Non-GAAP Financial Information: Adjusted Assets
23 Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically 23 [B] Pension Funds ▪ AUM from XP Vida & Previdência is accounted in both assets and liabilities [C] Floating ▪ Uninvested cash from clients allocated in sovereign bonds [D]
Slide 24: Floating and Adjusted Gross Financial Assets
24 Floating Balance (=net univested clients' deposits) 1Q21 4Q20 Assets (3,184) (1,052) (-) Securities trading and intermediation (3,184) (1,052) Liabilities 20,399 20,303 (+) Securities trading and intermediation 20,399 20,303 (=) Floating Balance 17,214 19,252 Non - GAAP Financial Information Floa
Slide 25: Adjusted Net Income and Adjusted EBITDA
25 1Q21 1Q20 YoY 4Q20 QoQ EBITDA 864 567 52% 705 23% (+) Share Based Compensation 178 28 528% 180 -1% (+) Offering expenses - - n.a. 6 -100% Adj. EBITDA 1,043 595 75% 891 17% Non - GAAP Financial Information Adjusted Net Income and Adjusted Gross Financial Assets 25 Adjusted Net Income (in R $ mn )