#1XP Inc. 3Q21 Earnings Presentation#2XP Inc. 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. (the "Company," "we" or "our"), is solely for informational purposes. This presentation does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities. In addition, this document and any materials distributed in connection with this presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation was prepared by the Company. Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this presentation or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information in this presentation is in draft form and has not been independently verified. The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this presentation and any errors therein or omissions therefrom. Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. The information contained in this presentation does not purport to be comprehensive and has not been subject to any independent audit or review. Certain of the financial information as of and for the periods ended December 31, 2019, 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements. A significant portion of the information contained in this presentation is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company's internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results. Statements in the presentation, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These statements are generally identified by the use of words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. These risks and uncertainties include factors relating to: (1) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business; (2) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future; (3) competition in the financial services industry; (4) our ability to implement our business strategy; (5) our ability to adapt to the rapid pace of technological changes in the financial services industry; (6) the reliability, performance, functionality and quality of our products and services and the investment performance of investment funds managed by third parties or by our asset managers; (7) the availability of government authorizations on terms and conditions and within periods acceptable to us; (8) our ability to continue attracting and retaining new appropriately-skilled employees; (9) our capitalization and level of indebtedness; (10) the interests of our controlling shareholders; (11) changes in government regulations applicable to the financial services industry in Brazil and elsewhere; (12) our ability to compete and conduct our business in the future; (13) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors; (14) changes in consumer demands regarding financial products, customer experience related to investments and technological advances, and our ability to innovate to respond to such changes; (15) changes in labor, distribution and other operating costs; (16) our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us; (17) the negative impacts of the COVID-19 pandemic on global, regional and national economies and the related market volatility and protracted economic downturn; and (18) other factors that may affect our financial condition, liquidity and results of operations. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements included herein speak only as at the date of this presentation and the Company does not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, the Company and its affiliates, officers, employees and agents do not undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and we do not intend to update any of these forward-looking statements. Market data and industry information used throughout this presentation are based on management's knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management's review of industry surveys and publications and other publicly available information prepared by a number of third party sources. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information. The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction. This presentation also includes certain non-GAAP financial information. We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company's operations. We also believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company's business that, when viewed with our International Financial Reporting Standards ("IFRS") results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company's business. Further, investors regularly rely on non-GAAP financial measures to assess operating performance and such measures may highlight trends in the Company's business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company's industry, many of which present these measures when reporting their results. The non-GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparative purposes is limited. A reconciliation of such non-GAAP financial measures to the nearest GAAP measure is included in this presentation. For purposes of this presentation: "Active Clients" means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (Europe) brands, with an AUC above R$100.00 or that have transacted at least once in the last thirty days. For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one "active client" for each such account. For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two "active clients" for purposes of this metric. "Assets Under Custody (AUC)" means the market value of all client assets invested through XP's platform, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COES (Structured Notes), REITs, and uninvested cash balances (Floating Balances), among others. 2#3Index 01 Opening Remarks 02 Highlights 03 3021 KPIs and Financials 04 Q&A#41 Opening Remarks#5Where are we investing in? Main corporative pillars to successfully deliver our purpose 1 2 3 FOUNDATIONS PROTECT AND EXPAND THE CORE BUILD THE FUTURE XP nc. 5#62 Highlights#7Highlights 3Q21 Results Improved Governance Product Highlights ▪ All time high quarterly Gross Revenue and Adjusted Net Income Highest gross margin since the IPO, of 71.8% ▪ Consistent Adj. Net Inflow +R$15bn monthly average ▪ BDRs listed in B3 with ~500k new individual investors and improved liquidity ▪ XP Controle voting power increased to 68% ▪ Record Pension Funds Inflows Strong Credit Card TPV growth of +55% QoQ ■ XP Inc. 7#83 3021 KPIs and Financials#91 I I I KPIs Investments Total AuC R$789 Billion Active Clients 3.3 Million Adjusted Net Inflows R$47 Billion +40% YoY +25% YoY +22% YoY Banking Credit Portfolio¹ R$8.6 Billion Credit Card TPV R$3.3 Billion NPL Ratio 0% +122% YTD +55% QOQ NPS³ Sep-21: 77 Financials Gross Revenue R$3.4 Billion Adjusted EBITDA² R$1.2 Billion Adjusted Net Income² R$1.0 Billion XP Inc. +50% YoY +61% YoY +82% YoY (1) This portfolio does not include Intercompany and Credit Card related loans and receivables (2) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA (3) NPS, is an independent widely known survey methodology that measures the willingness of customers to recommend a Company's products and services. The NPS calculation as of a given date reflects the average of the answers in the previous six months 9#10Revenue and Breakdown Total Gross Revenues (in R$ mn) 2,245 ■ 3Q20 +50% 3,368 3Q21 Highlights Strong Retail and Issuer Services revenue, with growth contribution of 80% and 10%, respectively; ▪ Growing contribution from banking revenues and record quarter for fixed income. $ RETAIL 77% ISSUER SERVICES 8% —M INSTITUTIONAL 8% مهمة XP Inc. DIGITAL CONTENT 1% of 3Q21 Total Gross Revenue Other Revenue represented 5% of Total Gross Revenues 10#11Retail Revenue and Take Rate Resilient monetization and product diversification Retail Revenue (in R$ mn) 1,698 3Q20 +53% 2,599 3Q21 Highlights ▪ Fixed income and structured products growth and floating revenues driven by higher interest rates; ▪ On 3Q21, Retail related revenues represented 83% of consolidated Net Income from Financial Instruments. LTM Take Rate (LTM Retail Revenue / Average AUC) IPO Note: Average AUC = (Sum of AUC from the beginning of period and each-quarter end in a given year, being 5 data points in one year)/5 ↑ 1.3% 4Q19 1.3% 1.3% 1Q20 2Q20 Stable take rate since IPO 1.3% ¶ 3Q20 4Q20 1Q21 2Q21 3Q21 1.3% XP Inc. 1.3% 1.3% 1.3% Highlights Ability to add new products and services in the platform - such as credit cards and credit, and diversified revenue profile. AUC -LTM Take Rate 11#12Adjusted EBITDA and Margin Operational Leverage despite investments in technology, client experience and product offering Operating Expenses (in R$ mn) SG&A¹ % of Net Revenue 669 3Q20 31.9% +67% 1,116 3Q21 35.2% Headcount (2) See appendix for a reconciliation of Adjusted EBITDA. 3,364 3Q20 +64% 4,489 2Q21 5,527 3Q21 Highlights ▪ A 64% increase in headcount YoY was the main driver behind SG&A growth. Despite a competitive marketplace for talents, we have been able to hire people to carry out the new initiatives and products, especially in tech. Adjusted EBITDA² (in R$ mn) % Adj EBITDA Margin 728 3Q20 34.6% +61% 1,170 3Q21 36.9% XP Inc. Highlights ▪ Main drivers were (1) top line increase, mainly coming from Retail; (2) higher gross margins, partially offset by investments in new initiatives. 12#13Non-GAAP Financial Information Normalized Effective Tax Rate reconciliation (in R$ mn) Accounting ETR [A] EBT [B] Income tax ETR A/B Normalized ETR [c] Tax witholding [A+C] Tax equivalent EBT [B-C] Normalized tax expense Normalized ETR 1Q21 2Q21 3Q21 784 (50) -6.4% -7.1% 1,002 908 (71) 28 3.1% 105 126 179 889 1,128 1,087 (155) (197) (150) -17.4% -17.5% -13.8% PART OF OUR REVENUE IS RECOGNIZED NET OF TAXES. XP Inc. 13#14Adjusted Net Income and Margin Net margin expansion driven by strong growth in Retail, operating leverage and a lower tax rate Adjusted Net Income¹ (in R$ mn) Adjusted Net Margin 570 ■ 3Q20 27.1% +82% 1,039 Note: See appendix for a reconciliation of Adjusted Net Income. 3Q21 Highlights Adjusted Net Income grew 82% vs. 3Q20, explained by (1) strong growth in Retail Revenue, (2) operating leverage in SG&A and (3) a lower effective tax rate. 32.8% YOY Growth Across 3021 P&L Gross Revenue +50% Adjusted EBITDA Adjusted Net Income Operating leverage +61% Corporate Structure Margin expansion YoY +225 bps +82% XP Inc. +561 bps 14#15Q&A#16Investor Relations [email protected] https://investors.xpinc.com/ XP Inc.#17Appendix#18Non-GAAP Financial Information Floating and Adjusted Gross Financial Assets Floating Balance (in R$ mn) Floating Balance (=net uninvested clients' deposits) Assets (-) Securities trading and intermediation Liabilities (+) Securities trading and intermediation (=) Floating Balance 3Q21 (1,065) (1,065) 19,635 19,635 18,570 2Q21 (2,776) (2,776) 20,814 20,814 18,038 Adjusted Gross Financial Assets (in R$ mn) Adjusted Gross Financial Assets Assets (+) Cash (+) Securities - Fair value through profit or loss (+) Securities - Fair value through other comprehensive income (+) Securities - Evaluated at amortized cost (+) Derivative financial instruments (+) Securities purchased under agreements to resell (+) Loans and credit card operations (+) Foreign exchange portfolio Liabilities (-) Securities (-) Derivative financial instruments (-) Securities sold under repurchase agreements (-) Private Pension Liabilities (-) Deposits (-) Structured Operations (-) Financial Bills (-) Foreign exchange portfolio (-) Credit card operations (-) Floating Balance (=) Adjusted Gross Financial Assets 3Q21 120,595 2,823 53,432 28,566 858 XP Inc. 2Q21 105,113 1,237 45,360 23,701 988 15,471 7,871 10,535 15,485 8,174 7,964 1,039 (85,459) (2,082) 2,204 (73,704) (2,790) (14,506) (16,373) (24,234) (16,062) (26,711) (22,046) (6,867) (6,628) (5,699) (4,198) (2,343) (2,160) (1,150) (2,324) (1,867) (1,124) (18,570) (18,038) 16,566 13,372 18#19Non-GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically Simplified Balance Sheet (in R$ mn) [B] Pension Funds Assets Total Securities - Fair Value through P&L Securities - Repos Securities - Fair Value through OCI Securities Trading & Intermediation Other Financial Instruments Other Assets Liabilities + Equity Total Securities - Repos Other Finan. Liab. Pension Funds Securities - Trading & Intermediation Other Liabilities & Equity [A] 129,735 53,432 7,871 28,566 1,065 16,329 22,472 [A] 129,735 24,234 16,588 26,711 19,635 42,567 26,711 26,711 [B] Pension Funds 26,711 26,711 [A-B] 103,024 26,721 7,871 28,566 1,065 16,329 22,472 [A-B] 92,276 24,234 16,588 19,635 42,567 [C] Floating 19,635 18,570 1,065 [C] Floating 19,635 19,635 [A-B-C] 83,389 26,721 7,871 9,996 16,329 22,472 [A-B-C] 71,462 24,234 16,588 42,567 [D] Client Liquidity & Sov. Bonds Arb. 39,706 6,368 7,871 9,996 15,471 [D] Client Liquidity & Sov. Bonds Arb. 39,706 24,234 15,471 Adjusted Assets [A-B-C-D] 43,683 20,354 858 22,472 Adjusted Liabilities & Equity [A-B-C-D] 43,683 1,117 42,567 Key factors inflating our balance sheet XP Inc. [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] Client Liquidity & Sovereign Bonds Arbitrage Providing liquidity to clients with derivatives ▪ Money market funding (repos mostly) allocated into sovereign bonds targeting arbitrage ■ opportunities 60 19#20Non-GAAP Financial Information Adjusted EBITDA and Adjusted Net Income Adjusted EBITDA (in R$ mn) EBITDA (+) Share Based Compensation (+) Offering expenses Adj. EBITDA Adjusted Net Income (in R$ mn) Net Income (+) Share Based Compensation (+) Offering expenses (+/-) Taxes Adj. Net Income 3Q21 1,005 165 1,170 3Q21 936 165 (62) 1,039 3Q20 681 45 2 728 3Q20 541 45 2 (18) 570 YoY 48% 269% -100% 61% YoY 73% 269% -100% 254% 82% 2Q21 1,080 165 1,245 2Q21 931 165 (63) 1,034 QoQ -7% 0% n.a. -6% QoQ 1% 0% n.a. -1% 1% XP Inc. 20#21Institutional and Issuer Services Institutional Revenue (in R$ mn) 239 3Q20 +17% 281 3Q21 Highlights ▪ The result was largely driven by a strong fixed income activity - also benefiting from recent increases in interest rates in Brazil. Issuer Services Revenue (in R$ mn) ■ 169 3Q20 +68% 284 3Q21 XP Inc. Highlights Strong performance from both ECM and DCM divisions, with 15 and 48 deals executed in 3Q21 versus 14 and 34 in 3Q20, respectively, and a growing contribution from M&A. 21