Slide 1: XP Inc.
XP#inc.
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 3Q22 Financials 02 Q&A 03 01 Highlights
Slide 4: Highlights
1 Highlights
Slide 5: Quarter Highlights
5 1 Revenue and Client Assets Disclosure : Improving communication and the understanding of XP’s business through different cycles 3 Share Based Compensation : Discontinuing guidance of Adjusted Net Income Margin. New guidance announced: EBT Margin Quarter Highlights 4 Capital Distribution : Amendme
Slide 6: 3Q22 KPIs and Financials
2 3Q22 KPIs and Financials
Slide 7: Client Assets
7 Client Assets Client Segment and Product Breakdown Highlights ▪ Client Assets growth decelerated due to the challenging environment for Retail Net inflow, which fell 28 % from R $ 14 billion monthly average in 4 Q 21 to R $ 11 billion in 3 Q 22 . Client Assets (in R$ bn) 709 757 829 80 89 95 3Q21
Slide 8: Gross Revenue Breakdown Segments (Old)
8 Digital Content Digital Content Retail Institutional Institutional Issuer Services Issuer Services Other Other & Corporate Retail Institutional Institutional Issuer Services Issuer Services Other Other & Corporate Retail Institutional Institutional Issuer Services Issuer Services Digital Content D
Slide 9: Gross Revenue Breakdown Segments (New)
9 Digital Content Digital Content Retail Institutional Institutional Issuer Services Issuer Services Other Other & Corporate OLD Gross Revenue Breakdown Segments Segments NEW Retail Institutional Institutional Corporate & Issuer Services Issuer Services Other Other + - Breakdown Fixed Income Equitie
Slide 10: Gross Revenue
10 Gross Revenue Total Gross Revenues (in R$ mn ) Highlights ▪ Amidst a risk - off scenario, which weighs mainly on Retail, Gross Revenue grew due to the diversified profile of XP’s business . 3,368 3,618 3,811 3Q22 3Q21 2Q22 +13% RETAIL INSTITUTIONAL 69 % 15 % of 3Q22 Total Gross Revenue 11 % CORPO
Slide 11: Retail Revenue Breakdown
11 Retail Revenue Breakdown Risk - off scenario driving changes on revenue mix ¹ Includes Float, former Digital Content, FX, among others (in R$ mm) Funds Platform Fixed Income Retirement Plans Retail Revenue Equities Cards Credit Insurance Other¹ 3Q22 282 489 85 2,629 1,120 146 40 21 447 3Q21 354 4
Slide 12: Retail Take Rate
12 Retail Take Rate Highlights ▪ Without performance fees, annualized Retail Take Rate was 1 . 32 % on 2 Q 22 , in line with 3 Q 22 . Annualized Retail Take Rate 1.45% 1Q22 3Q21 4Q21 1.49% 1.23% 2Q22 3Q22 1.40% 1.33% Funds Platform and Retirement Plans Take Rate¹ Highlights ▪ Management Fee portion
Slide 13: Institutional and Corporate & Issuer Services
13 281 436 577 3Q21 2Q22 3Q22 +105% Institutional and Corporate & Issuer Services Institutional Revenue (in R$ mn ) Highlights ▪ Institutional performance was mainly driven by increased activity on FICC¹ onshore and offshore desks ahead of the election period in Brazil . Corporate & Issuer Services
Slide 14: SG&A and EBT Margin
14 SG&A and EBT Margin Highlights ▪ Sequential headcount expansion was mainly driven by internal advisors and recent graduated developers ; ▪ Expense growth is expected to be lower in 2023 relative to 2022 . Total SG&A (in R$ mn ) 5,527 6,339 Headcount 924 1,094 1,057 348 374 405 3Q21 2Q22 3Q22 1,27
Slide 15: Net Income and Net Margin
15 Net Income and Net Margin (in R$ mm) Adjusted Net Income¹ Basic EPS (in R$) Adjusted Net Margin Net Income Net Margin Adj. Diluted EPS (in R$) 3Q22 1,149 1.85 31.7% 1,031 28.5% 2.00 3Q21 1,039 1.67 32.8% 936 29.5% 1.82 YoY +11% +11% - 102bps +10% - 105bps +10% 2Q22 1,046 1.63 30.5% 913 26.6% 1.81
Slide 16: Net Asset Value
16 Net Asset Value 16 (in R $ bn) Adj. Gross Financial Assets NAV = Gross Debt - 3Q22 2Q22 Financial Assets 171.1 156.7 Securities & Derivatives 137.5 130.4 Loans 20.4 16.4 Repos 8.0 4.8 Other 5.2 5.0 (-) Financial Liabilities (140.6) (128.3) (-) Retirement Plans Liabilities (42.7) (39.1) (-) Market
Slide 17: NAV Bridge – from IPO (4Q19) to 3Q22
17 6.4 16.3 9.9 8.5 1.4 M&As NAV 3Q22 NAV 4Q19 Follow - On Net Income 1Q20 - 3Q22 Investment in IFAs Share Buyback Other (4.2) (1.4) (0.5) (0.3) NAV Bridge – from IPO (4Q19) to 3Q22 In R$bn
Slide 18: Q&A
Q&A
Slide 19: Investor Relations
19 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 20: Appendix
Appendix
Slide 21: ROA and ROE
21 ROA and ROE Return metrics have been trending down since mid - 2021 Return on Average Assets¹ 2.2% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4% 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% 3.3% 2Q22 3Q21 4.5% 4Q20 4.1% 3.5% 2Q21 3Q20 4.3% 1Q21 4.7% 4Q21 1Q22 3Q22 Return on Average Equity² ROA (LTM) ROA (Annualized) 14% 1
Slide 22: Non-GAAP Financial Information: Adjusted Assets
22 Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically 22 [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 23: Non-GAAP Financial Information: Adjusted Gross Financial Assets, NAV and Float
23 Non - GAAP Financial Information Adjusted Gross Financial Assets, Net Asset Value and Float 23 Adjusted Gross Financial Assets (in R $ mn ) Adjusted Gross Financial Assets 3Q22 2Q22 Assets 171,130 156,711 (+) Cash 2,601 3,244 (+) Securities - Fair value through profit or loss 73,101 67,521 (+) Se
Slide 24: Non-GAAP Financial Information: Adjusted Net Income
24 Non - GAAP Financial Information Adjusted Net Income 24 Adjusted Net Income (in R $ mn ) 3Q22 3Q21 YoY 2Q22 QoQ Net Income 1,031 936 10% 913 13% (+) Share Based Compensation 186 165 13% 214 -13% (+/-) Taxes (68) (62) 9% (81) -15% Adj. Net Income 1,149 1,039 11% 1,046 10%
Slide 25: XP Inc.
XP#inc.