Slide 1: XP Inc.
XPVinc.
Slide 2: Important Disclosure
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. (th
Slide 3: Index
Index 01 Opening Remarks 02 1Q23 Financials 03 Q&A 3
Slide 4: Opening Remarks
1 Opening Remarks
Slide 5: 1Q23 Highlights
1Q23 Highlights R$ 954 Billion + 89k + 688 Client Assets Net New Clients Net New IFAs R$ 3.5 Billion R$ 977 Million R$ 927 Million Gross Revenue¹ EBT¹ Net Income¹ +7% YoY¹ +14% YoY¹ +8% YoY¹ Notes: 1 – Excluding the one-time non-recurring loss related to the bonds of a large corporate issuer that fi
Slide 6: 1Q23 Highlights
1Q23 Highlights New EBT Margin Brand Return to Verticals¹ Milestones Shareholders R$2.7bn returned in LTM Revenue (in R$ mn) EBT Margin (in %) Best financial Net Income and Payout (in R$ bn) advisory 3.8 - 4.4 64% platform 405 by Folha 32% 29.6% 3.6 3,6% 5th 26% consecutive year 247 12th Expected 26
Slide 7: Long-term strategy
Long-term strategy Leadership in Cross sell Quality Investments Keep expanding our Expand offering to Superior service level Core Business, aiming attend client needs to deliver a unique absolute leadership in throughout their value proposition the segment financial life 7
Slide 8: Long-term strategy
Long-term strategy Leadership in Cross sell Quality Investments Keep expanding our Expand offering to Superior service level Core Business, aiming attend client needs to deliver a unique absolute leadership in throughout their value proposition the segment financial life 8
Slide 9: Long-term strategy
Long-term strategy Leadership in Cross sell Quality Investments Keep expanding our Expand offering to Superior service level Core Business, aiming attend client needs to deliver a unique absolute leadership in throughout their value proposition the segment financial life 9
Slide 10: Long-term strategy
Long-term strategy Leadership in Cross sell Quality Investments Keep expanding our Expand offering to Superior service level Core Business, aiming attend client needs to deliver a unique absolute leadership in throughout their value proposition the segment financial life 10
Slide 11: 1Q23 Financials
2 1Q23 Financials
Slide 12: Gross Revenue
Gross Revenue Total Gross Revenue (in R$ mn) 1Q23 One-time 1Q22 4Q22 1Q23¹ 1Q23¹ Δ QoQ¹ Δ YoY¹ Reported loss Mix Mix Mix Gross Revenue 3,326 (164) 3,489 +5% +7% 100% 100% 100% Retail 2,569 (95) 2,664 +5% +15% 71% 76% 76% Institutional 332 - 332 -7% -39% 17% 11% 10% Corporate & Issuer Services 266 -
Slide 13: Retail Revenue (1/2)
Retail Revenue (1/2) Total Retail Revenue (in R$ mn) 1Q23 One-time 1Q23¹ Δ QoQ¹ Δ YoY¹ Reported loss Retail 2,569 (95) 2,664 +5% +15% Core Retail Investments 1,715 (95) 1,809 +6% +1% Equities 1,069 - 1,069 +7% -3% Fixed Income 332 (95) 427 +9% +0% Funds Platform 313 - 313 +1% +17% New Verticals 364
Slide 14: Retail Revenue (2/2)
Retail Revenue (2/2) Core¹ New Verticals² Other One-time loss³ +64% 10,515 95 9,793 1,756 914 571 +R$749 mn 1,320 6,401 780 194 8,309 7,345 +R$2.9 bn -R$964 mn 5,426 2020 2021 1Q23³ LTM ▪ Macroeconomic environment mostly affects the core investments (Equities, Fixed Income and Funds Platform). ▪ New
Slide 15: SG&A and Comp Ratio
SG&A and Comp Ratio SG&A¹ (in R$ mn) LTM Comp Ratio² (in %) People Non-People -17% 1,377 29.8% 1,255 485 1,045 355 285 28.5% 899 892 760 26.9% 1Q22 4Q22 1Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 LTM 40.1% 42.0% 40.4% Efficiency Ratio² ▪ Total SG&A excluding incentives¹ reflected the cost str
Slide 16: EBT and Net Income
EBT and Net Income EBT and EBT Margin (in R$ mn, %) Net Income and Net Margin (in R$ mn, %) +14% +8% 977 927 854 856 160 783 131 738 817 796 1Q22 4Q22 1Q23¹ 1Q22 4Q22 1Q23¹ 29.6%¹ 28.1%¹ EBT Net 27.4% 23.2% 26.0% 27.4% 24.6% 25.4% Margin Margin ▪ EBT margin consistent with annual guidance between 26
Slide 17: Q&A
Q&A
Slide 18: Investor Relations
Investor Relations ir@xpi.com.br https://investors.xpinc.com/ 18
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically Simplified Balance Sheet (in R$ mn) Key factors inflating our balance sheet [B] Retirement Adjusted Assets Assets [A] [C] Float Plans [A-B-C] Total 194,441 47,806 15,269 131,365 [B
Slide 21: Net Asset Value
Net Asset Value (in R$ mn) 1Q23 4Q22 1Q23 4Q22 Financial Assets 180,747 177,761 (=) Adjusted Gross Financial Assets 18,772 18,775 Securities & Derivatives 139,577 140,481 (-) Gross Debt (9,950) (9,389) Loans 23,107 22,211 (-) Bonds (3,497) (3,561) Repos 11,830 7,604 (-) Debentures (2,235) (2,029) Ot
Slide 22: XP Inc.
XPinc.