Inter & Co. Inc. · NASDAQ:INTR
Inter & — Investor Day (May 2024)
90 slides from Inter &'s investor day presentation, May 13, 2024
Slide 1: Form 6-K Report of Foreign Private Issuer
United States Securities and Exchange Commission Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of May 2024 Commission File Number 132-02847 INTER & Co, INC. (Exact name of registrant as speci
Slide 2: Inter&Co TechDay
sinter&co TechDay
Slide 3: Disclaimer
E A R N I N G S P R E S E N T A T I O N | 1 Q 2 4 Disclaimer This report may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements reflect our Management’s good faith beliefs, they invo
Slide 4: TechDay Agenda
3 TechDay Agenda Vision CEO overview with João Vitor Foundation Our technology with Guilherme Ximenes Innovation Business cases with Alexandre Riccio Monetization Financial impacts with Santiago Stel Firechat Cocktail
Slide 5: The Vision
4 The Vision João Vitor Menin | Inter&Co CEO
Slide 6: The vision
5 • What we built • Technology as the bedrock The vision
Slide 7: The vision
6 The vision Data centers Monolithic systems IT servers Wired connections Branches From
Slide 8: The vision
7 Cloud-based Digital Microservices Single App Simple To The vision
Slide 9: The vision: what we built so far
8 Cloud-based Digital Microservices Single App Simple To The vision What we built so far Through Technology Creativity People Innovation Data
Slide 10: What we built so far
What we built so far lents 7 verticals 25™™ clients ainter “26 8.5" clients 6 verticals eins Tony ace 5 verticals = comm gt R$ 1.234,00 > =D = oe te ce = ~ Ss * A coal io) a 7 tee ~ _ evestir —Recerge Shopping Mostrar mals = * 4 ee) Ee Loop == VE s °° @ —— — os oo 2017 2020 2022
Slide 11: What we built so far
10 What we built so far 124 app versions since 2015 +160x more data processing capability than 2015 2024 32MM clients 7 verticals
Slide 12: Technology as the bedrock of everything we do
11 Enabling our operations to exceed expectations through 3 pillars: Technology as the bedrock of everything we do Scalability Acceleration Focus Combining Growth And Profitability Driven By Cost Efficiency Data-Based Business Model Providing Deeper and Faster Insights Highly Scalable and Extensible
Slide 13: Technology as the bedrock of everything we do
12 Technology as the bedrock of everything we do These foundations allowed us to be the 1st mover in several markets & Retail digital banking & Digital underwriting & Integrated Investments Platform & Integrated Insurance Platform & Integrated Marketplace & Integrated Global Account & Integrated Loy
Slide 14: Which product exemplifies the power of our technology stack?
13 Which product exemplifies the power our technology stack?
Slide 15: Deposits
14 DEPOSITS Which product exemplifies the power our technology stack?
Slide 16: Deposits
15 Which product exemplifies the power our technology stack? DEPOSITS
Slide 17: 191,000 cash-in transactions per hour
16 191’000 cash-in transactions1 per hour DEPOSITSWhich product exemplifies the power our technology stack? Note 1: Incoming resource transactions into Inter account, such as PIX, transfers, deposits and others.
Slide 18: Foundation
17 17 Foundation Guilherme Ximenes | Inter&Co CTO
Slide 19: Strategic Use of Technology
18 18 Strategic Use of Technology • Digital Transformation • Financial Super App • Proprietary Technologies • Data Platform + AI • Scaling Beyond Brazil • Gen AI Cases • Beyond The Horizon Foundation
Slide 20: Laying out the foundations
19 Laying out the foundations Until 2018 Less scalable Slower process High dependency Computing restraints Legacy systems Rigid structure Cloud based infrastructure 2018 & beyond Automated process Scalable computing Time to market 1st bank in Latin America to operate 100% in the cloud1 DevOps Micros
Slide 21: Financial Super App: the visionary approach
20 Financial Super App: the visionary approach The Super App Launch Everything integrated in a Single App
Slide 22: The problem and the opportunity
21 100,000 requests per minute1 3rd party API Gateway 1 bottleneck Scaling from 1 million clients 4 million clients The problem and the opportunity to Note 1: Considering peak periods, such as the Inter Day campaign (07/07/2020).
Slide 23: Inter API Gateway: the solution
22 Inter API Gateway The solution
Slide 24: Designing the solution for the future
23 ~6 months market median vs. ~15 days to create new features4 -95% Easy to EvolveRamp-up Speed Inter Gateway cost2 vs. 3rd Party Gateway cost2 Efficiency 1/10 of the cost USD 120’000 Inter Cost Inter API Gateway Performance 0.1 2 3rd Party Inter Inter Gateway’s capacity to process requests per min
Slide 25: Inter API Gateway: designing the solution for the future
24 Inter API Gateway Designing the solution for the future 0 1 Linear Exponential
Slide 26: Unleashing an immense potential
25 Tailor-Made Super Fast to evolve Ultra-High Performance Cost Efficiency Unleashing an immense potential Inter Shop APIs Strong Authentication DevOps Pipe Digital Banking Core Pix Inter Freedom & speed to create and customize
Slide 27: Everything, everywhere, all at once
26 15 million logins per day1 + 3,500 micro services2 Hundreds of Millions of interactions+ Note 1: The login volume used in this calculation is based on the average between May 5th, 2024 to May 10th, 2024. Note 2: The microservices used in this calculation are from the production environment of Jan
Slide 28: Volume of data increased significantly
27 Volume of data increased significantly Note 1: Stored data in AWS servers. 2020 +25 PB 2019 20232021 2022 0,1PB Data in our Data Lake In Petabytes Various types of storageExponencial growth 2024 Version 1 Version 2 Version 3
Slide 29: Dashboard Live moment
28 Dashboard Live moment
Slide 30: AI: Empowering the existing data & creating more insights
29 Time-to-insight2 Time taken to deploy a model AI: Empowering the existing data & creating more insights 68 day s 36 day s Quality + +Scale Flexibility Note 1: Internal models used across Inter&Co’s teams and processes. Note 2: Interviews were conducted with data scientists in July 2023, November
Slide 31: Fraud Prevention AI
30 ~30 AI touch points1 Geo Location4 Transaction Speed3 -68% -52%Face Recognition2 loss and theft claims6 (mar/23 - mar/24) financial fraud losses5 (2022 vs. 2023) Fraud Prevention AI: Empowering the existing data & creating value Note 1: 30 microservices that support the current AI models. Note 2:
Slide 32: Scalable beyond Brazil
31 Scalable beyond Brazil New frontiers Same components Cloud Infrastructure Backend Systems User Experience Developers Team Highly scalable bussines model, from products to countries
Slide 33: Live logins Worldwide Live moment
32 Live logins Worldwide Live moment
Slide 34: Impressive capability for deep customer insights
33Note 1: Data points gathered in an unified internal data basis, which has client’s credentials and app usage. Cr os s & u p se lli ng ca pa bi lit y Data gathering+ Data gathering+ Data gathering+ Data gathering+ Data gathering+ Data gathering+Data gathering+ Open Account Geolocation Day to day ba
Slide 35: Constant improvements in the journey
34 Previous models Win OneBlack Digital 4 clusters Constant improvements in the journey 2018
Slide 36: Constant improvements in the journey
35 Previous models Win One Black Digital Constant improvements in the journey Demographic Data 2020 To more than 80
Slide 37: Constant improvements in the journey
36 Constant improvements in the journey Per cluster Per client Per context / client 2022 To Thousands From 80
Slide 38: From thousands to personalized app tailor made for each customer
37 From thousands to 1 personalized app tailor made for each customer Constant improvements in the journey Beyond
Slide 39: We are now unleashing the power of Gen AI
38 We are now unleashing the power of Gen AI AI Machine Learning Deep Learning Gen AI Again, being one of the early users of a new solution
Slide 40: Enhancing the power of our platform with Gen AI
39 Note 1: The implementation of Chat GPT by Open IA occurred in November 2022, while Inter GPT was implemented on March 10, 2024. Note 2: Interactions refer to each message responded by Inter GPT. 3 months1 For all Inter’s employees after Open Al launch Enhancing the power of our platform with Gen
Slide 41: Enhancing the power of our platform with Gen AI
40 Note 1: Gen AI assistant test made by a portion of the contact center team in October 2023. Note 2: Increase noticed at the same time as the Gen AI assistant was being tested in October. Contact center Summarizing 2,500 articles into a chat conversation From 18minutes To 14minutes1 using Gen AI A
Slide 42: Inter Gen AI at Scale
41 Inter Gen AI at Scale Orchestration Layer Gen AI platform Prompt Eng. Services Client issues the command Optimizes the best models for the best outcomes Memory Services Data Lake Integration New Gen AI solution Propriatery Model Recover previous conversation Enriches responses from LLM Models wit
Slide 43: Looking ahead: Next Chapter
42 Modern Apps Intelligent Apps Natural language interaction with GenAi Driven by data + Personalized experiences Next Chapter… Looking ahead Modern app development principles Rapid innovation with CI/CD Microservices-based architecture Pa ra di gm Sh ift
Slide 44: Exploring new opportunities to push the frontier, again
43 Exploring new opportunities to push the frontier, again Voice command Next chapter… Or the future could be…
Slide 45: Exploring new opportunities to push the frontier, again
44 Exploring new opportunities to push the frontier, again No need of smartphone Next chapter… Or the future could be…
Slide 46: Exploring new opportunities to push the frontier, again
45 Exploring new opportunities to push the frontier, again Predictive solutions? Next chapter… Or the future could be…
Slide 47: Exploring new opportunities to push the frontier, again
46 Exploring new opportunities to push the frontier, again Imagine everything together
Slide 48: We are looking beyond the horizon
47 We are looking beyond the horizon
Slide 49: Innovation
48 Innovation Alexandre Riccio | SVP – Banking Rodrigo Gouveia | Inter Shop CEO
Slide 50: Business and IT together delivering results: 4 cases
49 1 2 3 Credit Underwriting PIX Global Account Shopping 4 Business and IT together delivering results: 4 cases of success at Inter
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Slide 52: Prioritizing the best UX & products
51 Prioritizing the bestUX& products
Slide 53: Credit Underwriting: 0 to 1 approach to product development
52 Launching unsecured products BNPL Overdraft Withdrawal financing Bill pay financing PIX financing Launching Cashback CC Processor Launch 0.8 1.9 4.8 6.9 9.5 10.1 Gross Credit Card Portfolio In R$ Billion Scaling unsecured products Repricing the Portfolio Scaling CDB+Limite Offering Credit card on
Slide 54: Credit Underwriting: mature set of models for consistent growth
53 1. Income Estimator 2. Onboarding Scoring 3. Behavior Scoring 4. Credit Limit Maintanance 5. Credit Collection Scoring 1. Income Estimator 2. Onboarding Scoring 3. Behavior Scoring 4. Credit Limit Maintenance 5. Credit Collection Scoring InterLake Data Marts Other S3 Bucket EC2 Instance Data + IT
Slide 55: PIX: eliminating cash and revolutionizing payments
54 8% PIX Market Share PIX: eliminating cash and revolutionizing payments
Slide 56: PIX: transactional banking at a scale never seen before
55 163 177 198 230 234 541 647 761 889 928 1 0 1 50 2 0 0 2 50 3 0 0 3 50 4 0 0 1Q23 2Q23 3Q23 4Q23 1Q24 Clients using PIX per day2 in Millions Number and Volume of PIX Transactions In million & in R$ billion R$ 6.7 bn Cash-In Balance1 3.1 4.9 April, 2023 April, 2024 487 PIX transactions per second
Slide 57: PIX: Inter establishing the industry benchmark
56 Service Quality Index (IQS)1 Monthly stability of PIX Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Months2 at Grade A 23 23 22 19 11 12 25 How? Most stable PIX in Brazil IQS Methodology Service Quality Index Complaints Availability Timeouts + + PIX: Inter establishing the industry benchmark
Slide 58: PIX: capitalizing on experience to find the best solution
57 Cloud-Based Continuous Monitoring Independent Architecture Our Own Code and Solutions Preventive Routines Adaptive Architecture How? Most stable PIX in Brazil Faster and Independent Quick Reactive Responses Scalable and Stable PIX: capitalizing on experience to find the best solution
Slide 59: Inter Shop
58 First ever e-commerce platform integrated into a bank in the Americas Banking Shopping Global Investments Loyalty Insurance Credit Inter Shop
Slide 60: Inter Shop: integration unlocking value across the Financial Super App
59 Shopping Loyalty Travel Shell Box Connectivity Credit Digital Account Gift Card Insurance End to End Affiliates Integration is the key for the Shop success Inter Shop: integration unlocking value across the Financial Super App
Slide 61: Inter Shop: integration driving efficiency
60 Close Loop “On-Us” Processing = On-Us payments + Frictionless experience + Upsell options Banking Global Investments Insurance Credit Shopping Loyalty Inter Shop: integration driving efficiency
Slide 62: Inter Shop: integration generating revenue
61 Debit Loop points Credit BNPL Flexible installments options Faster approval Higher control of payment flow On-Us Payments 37% 83% 63% 17% 2Q20 1Q24 On-us Off-us GMV1 In % Note 1: Gross merchandise value, or GMV, for a given period as the total value of all sales made or initiated through our Inte
Slide 63: Inter Shop: AI models boosting better targeting and hyper personalization
62 Targeting better clients Customer Potential new customer Probability of buying Pr ob ab ili ty o f S pe nd in g H ig h 12 4 3 Lo w HighLow +40% average ticket1 AI Predictive Models Leads to Better Targeting & Omnichannel Leads to Better Communication = More Sales & Higher Revenue Using of AI prop
Slide 64: Inter Shop: Gen AI unlocking new possibilities
63 \ Gen AI SHOP CONCIERGE Note 1: AI predictive models allow us to better target customers leading to a 40% increase on the average ticket. Note 2: AI predictive models allow us to better target customers leading to a 100% increase on the conversion rate. Inter Shop: Gen AI unlocking new possibilit
Slide 65: Global Account: addressing market demand with a unique UX
64 to Replication ˜3.0 3x million clients more product adoption Modularity Time-to-market Lower costs 0 to 5 verticals in less than 2 years Global Account: addressing market demand with a unique UX
Slide 66: One password. One Financial Super App. Live moment
65 One password. One Financial Super App. All solutions you need. Live moment
Slide 67: Monetization
66 Monetization Santiago Stel | SVP - CFO
Slide 68: Tech and innovation driving operational leverage
67 7 0 10 0 13 0 16 0 19 0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Net revenue1 Adm. & Personnel Expenses 114 119 115 137 140 158 172 179 193 100 89 89 95 108 96 91 98 100 101 7 0 10 0 13 0 16 0 19 0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1.9X Tech and innovation driving operati
Slide 69: Optimizing our cost structure by embracing technology
68 914 - 500 1,000 1,500 2,000 2,500 3,000 2020 1,702 2021 2,392 2022 2,413 2023 628 628 4Q23 1Q24 Expenses remaining flat since 2022 Optimizing our cost structure by embracing technology Boosting efficiency Note 1: SG&A Expenses consider personnel expenses, administrative expenses and depreciation
Slide 70: Optimizing our spending in personnel expenses
69 25%, 229 26%, 443 31% 734 33% 791 75% 685 74% 1,258 69% 1,658 67% 1,622 914 1,702 2,392 2,413 2020 2021 2022 2023 Personnel Expenses Optimizing our spending in personnel expenses SG&A Expenses1 In R$ Million Note 1: SG&A Expenses consider personnel expenses, administrative expenses and depreciati
Slide 71: And resulting in more productivity
70 +3X YoY And resulting in more productivity
Slide 72: And resulting in more productivity
71 Net Revenue per Employee1 In R$ Thousand Active Clients per Employee 1 Employee = 1Q24 ˜5.2 Thousand active clients + 1.5X YoY 475 532 812 1,334 - 200 400 600 800 1,000 1,200 1,400 2020 2021 2022 2023 And resulting in more productivity Note 1: Net revenue = total net revenue - tax expenses. +3X Y
Slide 73: Scaling up tech workforce
72 30% 37% 40% 40% 44% 28% 30% 32% 34% 36% 38% 40% 42% 44% 2020 2021 2022 2023 Apr-24 Tech Employees as % of Headcount1 In % Inspiring innovative thinking Headcount increasingly more tech-based Note 1: Tech employees include IT employees and employees with technology background. Scaling up tech work
Slide 74: Re-allocating resources to ensure continued innovation
73 861 546 373 315 1,521 1,563 1,400 1,420 1,440 1,460 1,480 1,500 1,520 1,540 1,560 1,580 Operations Client Services Technology Headcount Breakdown In number of employees Technology 44% of HC Client Services 15% of HC Operations 9% of HC 2021 Apr/24 Re-allocating resources to ensure continued innov
Slide 75: Optimizing our spending in administrative expenses
74 25% 229 26% 443 31% 734 33% 791 75% 685 74% 1,258 69% 1,658 67% 1,622 914 1,702 2,392 2,413 2020 2021 2022 2023 Administrative Expenses Optimizing our spending in administrative expenses SG&A Expenses1 In R$ Million Note 1: SG&A Expenses consider personnel expenses, administrative expenses and de
Slide 76: Optimizing our spending in administrative expenses
75 25% 229 26% 443 31% 734 33% 791 26% 175 42% 532 38% 637 40% 650 914 1,702 2,392 2,413 2020 2021 2022 2023 Top 6 Providers Optimizing our spending in administrative expenses SG&A Expenses1 In R$ Million Note 1: SG&A Expenses consider personnel expenses, administrative expenses and depreciation and
Slide 77: Optimizing our cost structure across vendors
76 -16% -40% -23% -75%+58%-52% Optimizing our cost structure across vendors 1 2 3 4 5 6 MasterCard Expense per Cards TPV In R$ AWS Expense per Active Client In R$ ATM Expense per Active Client In R$ Contact Center Expense per Active Client In R$ Printing & Shipping per Cards Active Client In R$ Goog
Slide 78: Optimizing our cost structure across vendors
77 2021 2022 2023 13.2 7.9 -40% 2021 2023 0.0029 0.0024 -16% 8.7 6.7 4.2 2021 2022 2023 -52% 11.7 7.9 2.9 2021 2022 2023 -75% 2021 2022 20236.6 7.8 8.6 -23% 6.9 10.9 10.8 2021 2022 2023 +58% 1 2 3 4 5 6 MasterCard Expense per Cards TPV In R$ AWS Expense per Active Client In R$ ATM Expense per Active
Slide 79: Increasing revenues at a fast pace
78 Revenue In R$ Billion Increasing revenues at a fast pace 71%, 0.7 72%, 1.6 66%, 2.3 68%, 3.2 29%, 0.3 28%, 0.6 34%, 1.2 32%, 1.5 1.0 2.2 3.6 4.8 1.3 3.1 6.0 8.1 2020 2021 2022 2023 Net Revenue Net Fee Revenue NII Gross Revenue +135% +120% +92% +60% +35% +33%
Slide 80: Increasing revenues at a fast pace
79 2023 Interest Income Breakdown In R$ Million & in % 926 15% 1,117 18% 522 9%1,246 21% 738 12% 1,546 25% 2023 Gross Fee Revenue Breakdown In R$ Million & in % 1,040 52% 341 17% 121 6% 170 9% 89 5% 222 11% R$1,983R$6,096 Real Estate Personal SMB Securities & Derivatives Anticipation of Credit Card
Slide 81: Increasing revenues at a fast pace
80 2023 Interest Income Breakdown In R$ Million & in % 926 15% 1,117 18% 522 9%1,246 21% 738 12% 1,546 25% 2023 Gross Fee Revenue Breakdown In R$ Million & in % 1,040 52% 341 17% 121 6% 170 9% 89 5% 222 11% R$1,983R$6,096 Real Estate Personal SMB Securities & Derivatives Anticipation of Credit Card
Slide 82: Boosting operational leverage
81 Credit Card Revenue per Credit Card Active Client In R$ FGTS ROE In % Home Equity ROE In % Banking Revenue per Cards Active Client In R$ Shop Revenue per Inter Shop Active Client In R$ Insurance Revenue per Insurance Active Client In R$ +4x +33 p.p. +8 p.p. +62%+89%+8% Boosting operational levera
Slide 83: Boosting operational leverage
82 Insurance Revenue per Insurance Active Client In R$ 0% 15% 48% 2022 2023 318 89 202 2021 2022 2023 +33 p.p.+4x +89% +62% +8 p.p. +8% 107 110 115 2021 2022 2023 57 30 2021 2022 20232021 100 62 2023 2021 23% 15% Banking Revenue per Cards Active Client In R$ Shop Revenue per Inter Shop Active Client
Slide 84: In the end, it all comes down to the 60-30-30 plan
83 Total Clients Efficiency Ratio Return on Equity What we achieved so far Our 5-year north star By 2027 ~60 MM ~30 % ~30 % Where we started 3Q22 Year 0 Year 5 23MM 75% (2%) G ro w th O pe ra tio na l Le ve ra ge Pr of ita bi lit y Year 1 4Q23 Year 2 4Q24 Year 3 4Q25 Year 4 4Q26 Year 1 4Q23 Year 2 4
Slide 85: Inter&Co | INTR Nasdaq Listed
sinter&co INTR | Nasdaq Listed
Slide 86: Non-IFRS measures and KPIs
Non-IFRS measures and KPIs Activation Rate: Number of active clients at the end of the quarter Total number of clients at the end of the quarter Active clients: We define an active client as a customer at any given date that was the source of any amount of revenue for us in the preceding three month
Slide 87: Non-IFRS measures and KPIs
Card+PIX TPV: PIX, debit and credit cards and withdrawal transacted volumes of a given period. PIX is a Central Bank of Brazil solution to bring instant payments among banks and financial institutions in Brazil. Card+PIX TPV per active client: Card+PIX TPV for a given period divided by the number of
Slide 88: Non-IFRS measures and KPIs
Gross loan portfolio: Loans and Advance to Customers + Loans to financial institutions Gross merchandise volume (GMV): Gross merchandise value, or GMV, for a given period as the total value of all sales made or initiated through our Inter Shop & Commerce Plus platform managed by Inter Shop & Commerc
Slide 89: Non-IFRS measures and KPIs
Risk-Adjusted NIM 2.0: Net interest income − Impairment losses on Linancial assets x 4 Average of 2 Last Quarters Earning Portfolio (Loans to Linancial institutions + Securities + Derivatives + Net loans and advances to customers) SG&A: Administrative Expenses + Personnel Expenses + Depreciation and
Slide 90: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTER & Co, INC. By: /s/ Santiago Horacio Stel Name: Santiago Horacio Stel Title: Senior Vice President