Slide 1: 2Q22 Earnings Presentation
1 2Q22 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 2Q22 KPIs and Financials 02 Q&A 03 01 Highlights
Slide 4: Highlights
1 Highlights
Slide 5: Quarter Highlights
5 1 Business Model Resilience : record quarterly revenues, R$3.6 billion , with all - time - high Retail Revenues, up 15% QoQ 3 Cost Discipline : despite investing ~R$500 million in early - stage initiatives¹ in 1H22, Adj. EBITDA Margin stood above 35% and Adj. Net Margin above 30% Quarter Highlight
Slide 6: Recent Developments: Direct International Investments Platform for Retail Clients
6 Recent Developments Service available through XP International, the US Broker Service of XP Inc. Learn more about the product: https://lp.xpi.com .br /mercadointernacional Direct International Investments Platform for Retail Clients Democratizing access to International Investments » Already avail
Slide 7: Recent Developments: Clients investing in crypto assets
7 Recent Developments Note: internal research made with ~3,000 clients from the XP Brand. 59% Of our clients already invest in crypto assets 58% Of them invest directly in cryptocurrencies 88% Of them have the intention of investing in crypto through XP XTAGE
Slide 8: 2Q22 KPIs and Financials
2 2Q22 KPIs and Financials
Slide 9: 2Q22 Highlights and Main KPIs
9 Notes: (1) See Company fillings for a reconciliation of Adjusted Net Income and Adjusted EBITDA; (2) This portfolio is net of pr ovisions and does not include Intercompany and Credit Card related loans and receivables. Adjusted Net Income¹ R $ 1 . 0 Bn +1% YoY Gross Revenue R $ 3 . 6 Bn Highlights
Slide 10: Total Revenues
10 Total Revenues Total Gross Revenues (in R$ mn ) Highlights ▪ Driven mainly by the Retail business, with growing contribution from Fixed Income products and Float revenues YoY ▪ Pick up in Capital Markets activity, especially in DCM, led to a rebound in Issuer Services revenue QoQ 3,200 3,270 3,61
Slide 11: Retail Revenues
11 Retail Revenues Retail Revenue (in R$ mn ) (1) LTM Take Rate (LTM Retail Revenue / Average AUC), with Average AUC = (Sum of AUC from the beginning of period and each qu art er - end in a given year, being 5 data points in one year)/5 Highlights ▪ Strong demand for fixed income products and a larg
Slide 12: Adjusted EBITDA and Adjusted Net Income
12 Adjusted EBITDA and Adjusted Net Income Higher SG&A due to New Verticals and Internal Advisors (1) See Company fillings for a reconciliation of Adjusted Net Income and Adjusted EBITDA. Highlights ▪ Adjusted EBITDA decreased 2 % YoY, driven mainly by higher relative SG&A expenses due to our invest
Slide 13: Q&A
Q&A
Slide 14: Investor Relations
14 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 15: Appendix
Appendix
Slide 16: Institutional and Issuer Services
16 375 548 436 2Q21 1Q22 2Q22 +16% Institutional and Issuer Services Institutional Revenue (in R$ mn ) Highlights ▪ Institutional revenue has increased 16 % YoY, especially related to FICC strategies ▪ In 2 Q 22 , Institutional revenue accounted for 12 % of consolidated Net Income from Financial Ins
Slide 17: Non-GAAP Financial Information: Floating and Adjusted Gross Financial Assets
17 Non - GAAP Financial Information Floating and Adjusted Gross Financial Assets 17 Adjusted Gross Financial Assets (in R $ mn ) Float Balance (in R $ mn ) Float Balance (=net uninvested clients' deposits) 2Q22 1Q22 Assets (3,149) (2,489) (-) Securities trading and intermediation (3,149) (2,489) Lia
Slide 18: Non-GAAP Financial Information: Adjusted Assets
18 Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically 18 [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 19: Non-GAAP Financial Information: Adjusted EBITDA and Adjusted Net Income
19 2Q22 2Q21 YoY 1Q22 QoQ EBITDA 1,001 1,080 -7% 980 2% (+) Share Based Compensation 214 165 29% 212 1% Adj. EBITDA 1,215 1,245 -2% 1,191 2% Non - GAAP Financial Information Adjusted EBITDA and Adjusted Net Income 19 Adjusted Net Income (in R $ mn ) Adjusted EBITDA (in R $ mn ) 2Q22 2Q21 YoY 1Q22 Qo