Slide 1: 2Q21 Earnings Presentation
1 2Q21 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 1. Opening Remarks 2. Highlights 3. 2Q21 KPIs and Financials 4. Q&A
Slide 4: Opening Remarks
1 Opening Remarks
Slide 5: Connecting the Dots to Build a Leading Ecosystem
5 Connecting the Dots to Build a Leading Ecosystem XP’s revenue represent slightly more than 1% of the Brazilian Financial Industry 2001 - 2019 Building a unique business while competing with large banks INROADS INTO NEW VERTICALS TAM EXPANSION LEVERS TO ACCELERATE GROWTH THE BIG DREAM GETS BIGGER I
Slide 6: Highlights
2 Highlights
Slide 7: Highlights
7 Highlights ▪ Strongest Quarter Ever (Again) 2Q21 Results Bond Is s uance ▪ Access to a sizeable and liquid market M&As ▪ Broker Dealers ▪ Independent Asset Managers Brand Awareness ▪ XP Private awarded by Euromoney as Latin America’s best bank for wealth management 2021 ▪ Main Sponsor Investor in
Slide 8: 2Q21 KPIs and Financials
3 2Q21 KPIs and Financials
Slide 9: KPIs
9 (1) Does not include Credit Card related loans and receivables (2) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA (3) NPS, is an independent widely known survey methodology that measures the willingness of customers to recommend a Company’s products and services. The
Slide 10: Revenue and Breakdown
10 Revenue and Breakdown Total Gross Revenues (in R$ mn) 2Q20 2Q21 Highlights ▪ Strong growth leading to a new record, across different channels, with Retail contributing with 84 % of the growth . ▪ Institutional recorded the best quarter so far, driven by intense Fixed income activity, benefiting f
Slide 11: Retail Revenue and Take Rate
11 Retail Revenue and Take Rate Resilient monetization and product diversification LTM Take Rate (LTM Retail Revenue / Average AUC) Retail Revenue (in R$ mn) 1.4% 1.5 % 1.3% 1.4% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1, 4 75 2, 4 52 +66%
Slide 12: Institutional
12 Institutional Institutional benefited from fixed income volumes Institutional Revenue (in R$ mn) 333 375 +13% 2Q20 2Q21 Highlights ▪ Fixed Income activity was strong – benefiting from recent increases in interest rates in Brazil – driving the channel to record its best quarter so far, despite hig
Slide 13: Adjusted EBITDA and Margin
13 1 , 2 4 5 704 +77% 900 765 +18% Adjusted EBITDA and Margin Operational Leverage despite investments in technology, client experience and product offering Highlights ▪ Result of a scalable business model, with significant cross - sell and operating leverage opportunities ▪ Main drivers were ( 1 )
Slide 14: Adjusted Net Income and Margin
14 565 1, 0 34 +8 3% Gross Revenue Adjusted EBITDA Adjusted Net Income +57% +77% +83% Adjusted Net Margin Adjusted Net Income and Margin Net margin expansion driven by strong growth in Retail, operating leverage and a lower tax rate Adjusted Net Income (in R$ mn) Note: See appendix for a reconciliat
Slide 15: Q&A
Q&A
Slide 16: Investor Relations
16 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Financial Information: Adjusted Gross Financial Assets
Non - GAAP Financial Information Floating and Adjusted Gross Financial Assets 1 1 8 8 Adjusted Gross Financial Assets (in R$ mn) Adjusted Gross Financial Assets 2 Q 2 1 1 Q 2 1 A ss e t s 105,113 113,590 (+) Cash 1 , 23 7 1 , 55 7 (+) Securities - Fair value through profit or loss 45 , 36 0 62 , 85
Slide 19: Non-GAAP Financial Information: Adjusted Assets
Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically 1 1 9 9 [B] Pension Funds ▪ AUM from XP Vida & Previdência is accounted in both assets and liabilities f r o m c l ien t s allo c at e d in [C] Floating ▪ Uninve st e d c ash sov
Slide 20: Non-GAAP Financial Information: Adjusted EBITDA and Adjusted Net Income
2 Q 21 2Q20 YoY 1Q21 QoQ EBITDA 1,080 663 63% 864 25% (+) Share Based Compensation 165 40 309% 178 - 7% Adj. EBITDA 1,245 704 77% 1,043 19% Adjusted Net Income (in R$ mn) 2 Q 2 1 2Q20 YoY 1Q21 QoQ Net Income 931 540 72% 734 27% (+) Share Based Compensation 165 40 309% 178 - 7% (+/ - ) Taxes (63) (16