Slide 1: 3Q21 Earnings Presentation
1 3Q21 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 Highlights 02 3Q21 KPIs and Financials 03 01 Opening Remarks Q&A 04
Slide 4: Opening Remarks
1 Opening Remarks
Slide 5: Main corporate pillars to successfully deliver our purpose
5 Main corporative pillars to successfully deliver our purpose Where are we investing in? 1 FOUNDATIONS 2 PROTECT THE CORE 3 CORE EXPANSION 4 BUILD THE FUTURE
Slide 6: Highlights
2 Highlights
Slide 7: Highlights
7 Highlights ▪ All time high quarterly Gross Revenue and Adjusted Net Income ▪ Highest gross margin since the IPO, of 71.8% ▪ Consistent Adj. Net Inflow +R$15bn monthly average 3Q21 Results Product Highlights ▪ Record Pension Funds Inflows ▪ Strong Credit Card TPV growth of +55% QoQ Improved Governa
Slide 8: 3Q21 KPIs and Financials
3 3Q21 KPIs and Financials
Slide 9: 3Q21 KPIs
9 (1) This portfolio does not include Intercompany and Credit Card related loans and receivables (2) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA (3) NPS, is an independent widely known survey methodology that measures the willingness of customers to recommend a Compa
Slide 10: Revenue and Breakdown
10 Revenue and Breakdown Total Gross Revenues (in R$ mn) Highlights ▪ Strong Retail and Issuer Services revenue, with growth contribution of 80 % and 10 % , respectively ; ▪ Growing contribution from banking revenues and record quarter for fixed income . 3Q20 3Q21 2,245 3,368 +50% RETAIL INSTITUTION
Slide 11: Retail Revenue and Take Rate
11 Highlights ▪ Ability to add new products and services in the platform – such as credit cards and credit, and diversified revenue profile . Retail Revenue and Take Rate Resili ent monetization and product diversification LTM Take Rate (LTM Retail Revenue / Average AUC) Retail Revenue (in R$ mn ) 2
Slide 12: Adjusted EBITDA and Margin; Operating Expenses
12 3Q20 3Q21 669 1,116 +67% 728 3Q20 3Q21 1,170 +61% Adjusted EBITDA and Margin Operational Leverage despite investments in technology, client experience and product offering Highlights ▪ Main drivers were ( 1 ) top line increase, mainly coming from Retail ; ( 2 ) higher gross margins, partially off
Slide 13: Non-GAAP Financial Information: Normalized Effective Tax Rate
13 Non - GAAP Financial Information Normalized Effective Tax Rate reconciliation 1Q21 2Q21 3Q21 Accounting ETR [A] EBT 784 1,002 908 [B] Income tax (50) (71) 28 A/B ETR -6.4% -7.1% 3.1% Normalized ETR [C] Tax witholding 105 126 179 [A+C] Tax equivalent EBT 889 1,128 1,087 [B-C] Normalized tax expens
Slide 14: Adjusted Net Income and Margin
14 3Q20 3Q21 570 1,039 +82% +104% +75% +61% +50% Adjusted EBITDA Gross Revenue Adjusted Net Income +82% 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 Income¹ (in R$ mn ) Note: See append
Slide 15: Q&A
Q&A
Slide 16: Investor Relations
16 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Financial Information: Floating and Adjusted Gross Financial Assets
18 Non - GAAP Financial Information Floating and Adjusted Gross Financial Assets 18 Adjusted Gross Financial Assets (in R $ mn ) Floating Balance (in R $ mn ) Floating Balance (=net uninvested clients' deposits) 3Q21 2Q21 Assets (1,065) (2,776) (-) Securities trading and intermediation (1,065) (2,77
Slide 19: Non-GAAP Financial Information: Adjusted Assets
19 Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically 19 [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 20: Adjusted EBITDA and Adjusted Net Income
20 3Q21 3Q20 YoY 2Q21 QoQ EBITDA 1,005 681 48% 1,080 -7% (+) Share Based Compensation 165 45 269% 165 0% (+) Offering expenses - 2 -100% - n.a. Adj. EBITDA 1,170 728 61% 1,245 -6% Non - GAAP Financial Information Adjusted EBITDA and Adjusted Net Income 20 Adjusted Net Income (in R $ mn ) Adjusted EB
Slide 21: Institutional and Issuer Services
21 3Q21 3Q20 239 281 +17% Institutional and Issuer Services Institutional Revenue (in R$ mn ) Highlights ▪ The result was largely driven by a strong fixed income activity – also benefiting from recent increases in interest rates in Brazil . Issuer Services Revenue (in R$ mn ) 3Q20 3Q21 169 284 +68%