Slide 1: 1Q22 Earnings Presentation
1 1Q22 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 1Q22 KPIs and Financials 02 Q&A 03 01 Highlights
Slide 4: Highlights
1 Highlights
Slide 5: Highlights
5 New Verticals growth of 3x YoY , representing 7.6% of total revenues 4 1 Resilience – Gross Revenue growth of +17% YoY with Adj. Net Margin 30%+ 3 Distribution Network (IFAs + B2C) growing more than 5% QoQ Highlights 5 XP was rewarded Best Advisory for the 4th consecutive year by Datafolha 2 Portf
Slide 6: Recent Developments
6 Recent Developments Automated Equity Portfolios ▪ Efficiency & scale : push adherence ▪ Greater client loyalty and lower churn Alternative Funds Secondary Trading ▪ Launch of Secondary Trading Tool for Alternative Funds through XP Platform ▪ Fostering liquidity in both secondary and primary market
Slide 7: New Verticals Update: Credit
7 New Verticals Update Credit Mortgage Partnership with Direto ▪ Pilot phase with selected clients ▪ Important milestone of our credit marketplace ▪ XP acts only as a platform : n o risk on our balance sheet and no funding needs Collateralized Credit ▪ Improved client journey ▪ Launch of end - to -
Slide 8: New Verticals Update: Private Pension and Insurance
8 New Verticals Update Private Pension¹ (Portability, in R$ bn) Highlights ▪ 50 % of market share in NNM in 1 Q 22 ▪ We still have a long way to go, with only 3 . 3 % market share in AUM as of March 2022 Source: Susep ,. (1) Considers only funds managed by XPV&P. - 4.1 3.2 Top 5 Players XPV&P Insura
Slide 9: 1Q22 KPIs and Financials
2 1Q22 KPIs and Financials
Slide 10: 1Q22 Highlights and Main KPIs
10 Notes: (1) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA; (2) This portfolio does not include Int ercompany and Credit Card related loans and receivables. Adjusted Net Income¹ R $ 987 Mn +17% YoY Gross Revenue R $ 3 . 3 Bn Highlights KPIs R $ 2 . 2 Bn Gross Profit +
Slide 11: Total Revenues
11 Total Revenues Total Gross Revenues (in R$ mn ) Highlights ▪ Driven mainly by the Retail and Institutional businesses, with growing contribution from new verticals, fixed income and floating revenues ▪ Portfolio effect also present in non - retail businesses 1Q21 4Q21 1Q22 2,784 3,447 3,270 +17%
Slide 12: Retail Revenue and LTM Take Rate
12 4Q19 4.5% 2.3% 2Q20 3.8% 1Q20 1.3% 1.3% 1Q22 2.0% 3Q20 2.0% 4Q20 2.8% 1Q21 4.3% 2Q21 6.3% 3Q21 1.3% 9.3% 4Q21 11.8% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% Retail Revenue LTM Take Rate 1 (LTM Retail Revenue / Average AUC) Highlights ▪ Ability to add new products and services in the platform – such as
Slide 13: Adjusted EBITDA and Adjusted Net Income
13 Adjusted EBITDA and Adjusted Net Income Operational Leverage despite investments in technology, client experience and product offering (1) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA. (2) Normalized Effective Tax Rate. Highlights ▪ Adjusted EBITDA grew 14 % year o
Slide 14: Q&A
Q&A
Slide 15: Investor Relations
15 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 16: Appendix
Appendix
Slide 17: Institutional and Issuer Services
17 1Q22 4Q21 1Q21 294 326 548 +86% Institutional and Issuer Services Institutional Revenue (in R$ mn ) Highlights ▪ Market volatility boosted overall volumes in trading desks, mainly the ones related to derivatives ▪ Leadership in Retail secondary markets allows for greater synergies with Institutio
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) 1Q22 4Q21 Assets (2,489) (1,406) (-) Securities trading and intermediation (2,489) (1,40
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: Non-GAAP Financial Information: Adjusted EBITDA and Adjusted Net Income
20 1Q22 1Q21 YoY 4Q21 QoQ EBITDA 980 864 13% 1,241 -21% (+) Share Based Compensation 212 178 19% 149 42% Adj. EBITDA 1,191 1,043 14% 1,390 -14% Non - GAAP Financial Information Adjusted EBITDA and Adjusted Net Income 20 Adjusted Net Income (in R $ mn ) Adjusted EBITDA (in R $ mn ) 1Q22 1Q21 YoY 4Q21