#1XP Inc.#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 faimess, 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 COMID-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 concerming 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 Client Assets above R$100.00 or that have transacted at least once in the last thirty days. For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one "active client" for each such account. For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two "active clients' for purposes of this metric. "Client Assets" means the market value of all client assets invested through XP's platform, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Floating Balances), among others. 2#3Index 01 Introduction 02 FY22 KPIs and Financials 03 Q&A#41 Introduction#5XP benefited from a positive market environment until 2021 Unique distribution channel and product platform allowed us to help millions of Brazilians to invest better B3 Individual's Accounts (in millions) 0.8 2018 1.7 83% CAGR 2019 3.2 2020 5.0 2021 XP Inc.'s Net Income (in R$ mn) 465 98% CAGR 2018 2,081 ... 1,089 2020 2019 XP Inc. 3,592 2021 5#62022 posed many challenges to our business However, our business model has become less cyclical and more resilient over the years B3 Individual's Equity ADTV and Selic EoP B3 Individuals' Equity ADTV (R$ bn) 6.50% 2.2 2018 Source: B3 4.50% 3.2 2019 2.00% 6.3 2020 9.25% 6.4 2021 Selic Rate EoP 13.75% -28% 4.6 2022 XP Inc.'s Net Income (in R$ mn) 70 2013 -40%- 42 2014 3,592 2021 -0%- 3,580 2022 XP inc. 6#7Aligned with our strategy of expanding beyond Investments, new products and services were launched 2,429 2019 Banking License XPV&P 3,651 O 2020 Corporate Business Collateralized Credit 6,192 2021 Credit Card Margin Loan B2C Expansion XP Inc. 6,928 Headcount 2022 Life Insurance International Platform XTAGE Digital Account Debit Card ...leading headcount to increase close to 3x... 7#8Our core business continued to evolve +2,000 Net New IFAs Would be Brazil's 3rd largest network Client Assets R$65 bn 2016 R$126 bn 2017 R$202 bn 2018 R$ 155 Billion Net Inflow R$409 bn 2019 R$660 bn 2020 +460k Net New Clients R$815 bn XP inc. 2021 R$946 bn 2022 8#9Cross-Sell Large, in-house opportunity Penetration in Active Clients 16% Credit Cards <1% Credit 10% Digital Account <1% Insurance 5% Retirement Plans <1% International Investments XP Inc. New verticals are less cyclical than investments and enhance clients' lifetime value Untapped potential: relationship with clients improve as more products are adopted Credit Card, the highest penetration within the new verticals, has only 16%#10SG&A Expenses Corporate transformation process allowed for resource optimization and increased efficiency Total SG&A (in R$ bn)¹ -SG&A¹ Expense Ratio (SG&A¹/Net Revenue) 42.6% 37.1% 39.1% 2019 39.2% 2020 ال... 2021 42.0% Note 1 - Excludes Revenue from incentives from Tesouro Direto, B3 and Others. 5.6 2022 SHIM Adjustments to cost structure with no impact on service level nor strategic plan Leaner and sustainable cost structure from 2023 onwards 2023 GUIDANCE SG&A¹ between R$5.0 - 5.5 billion vs FY22 SG&A¹ of R$5.6 billion XP Inc.#112 FY22 KPIs and Financials#12Gross Revenue Q4 seasonality in annual revenue Average. 29.8% 2018 33.0% 2019 29.5% 2020 26.9% 2021 23.8% 2022 ■ 4Q usually benefits from performance fees and a more active capital market; ▪ In 2022, polarized Brazilian elections and the World Cup broke this historical pattern Gross Revenue Bridge QoQ (in R$mn) Business Days 3,811 3022 65 380 80% of revenue decrease Institutional / Issuer Services & Corporate 94 Less Business Days Retail 3,337 4Q22 61#13Gross Revenue (in R$ mn) Gross Revenue Retail Institutional Corporate Issuer Services Other 2022 14,036 10,157 1,919 596 699 666 2021 12,799 9,793 1,277 170 1,043 516 ΔΥΟΥ +10% +4% +50% +250% -33% +29% Highlights ■ After a very strong 2021, gross revenue expanded 10% YOY, reinforcing XP's resilience. (in R$ mn) Retail Equities Fixed Income Funds Platform Retirement Plans Cards Credit Insurance Other 2022 10,157 4,276 1,886 1,259 333 593 160 97 1,553 2021 9,793 5,390 1,619 1,300 227 180 104 60 914 XP Inc. ΔΥΟΥ +4% -21% +17% -3% +47% +229% +54% +62% +70% 13#14Gross Margin Gross Margin YoY 70.8% 2021 -0.8 bps 70.3% 2022 Highlights ■ Despite possible quarterly volatility, Gross Margin for 2023 is expected to be in line with 2021 and 2022. Gross Margin Bridge QoQ 72.2% 3Q22 2.6% 1.1% Commissionable Prepaid Revenue Mix Expense Write-off 1.5% Credit Cards 1.9% Other XP Inc. 65.1% 4Q22 Highlights ■ Gross Margin compression mainly led by items that are expected to normalize going forward. 14#15SG&A Expenses Total SG&A Expenses¹ (in R$ mn) 5,602 EBT Margin 4,730 2021 31.6% 2022 25.8% 2023E Note 1 - Excludes Revenue from incentives from Tesouro Direto, B3 and Others 26-32% 5,500 5,000 Highlights ■ SG&A¹ expenses estimated between R$5.0 billion and R$5.5 billion in 2023, versus R$5.6 billion in 2022. People Non-People 1,377 425 952 4Q21 34.4% 0% 1,377 485 892 4022 23.2% XP Inc. Highlights ▪ SG&A¹ expenses were flat YoY and fell 8% QOQ reflecting the ongoing adjustment of our cost structure. 15#16Net Income and EPS Net Income (in R$ mn) Basic EPS (R$) Net Margin 3,592 2021 6.42 29.7% -0.3% 3,580 2022 6.44 26.8% Highlights ■ Basic EPS grew marginally YOY, while Net Income remained stable. 991 4Q21 1.77 30.4% -21.0% 783 4Q22 1.43 24.6% XP Inc. Highlights ■ Basic EPS fell 19% YOY, while Net Income fell 21% YoY, to R$783 million. 16#17Key messages 1 Expenses: Leaner and sustainable cost structure, leading to a higher operational leverage in the future 2 Cross-sell: Large in-house opportunity to increase penetration of new verticals in 2023 3 4 Resilience and Adaptability: Cycles change constantly, we are building a company XP nc. 2023 Guidance: Net Income from R$3.8 to 4.4 billion and SG&A¹ from R$5.0 to 5.5 billion Note 1 - Excludes Revenue from incentives from Tesouro Direto, B3 and Others. 17#18Q&A#19Investor Relations [email protected] https://investors.xpinc.com/ XP Inc.#20Appendix#21Non-GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically Simplified Balance Sheet (in R$ mn) 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] 192,035 87,513 7,604 34,479 3,271 18,489 40,679 [A] 192,035 31,790 22,135 45,734 16,063 76,314 [B] Retirement Plans 45,734 45,734 [B] Retirement Plans 45,734 45,734 [C] Float 16,063 12,792 3,271 [C] Float 16,063 16,063 Adjusted Assets [A-B-C] 130,238 41,779 7,604 21,687 18,489 40,679 Adjusted Assets [A-B-C] 130,238 31,790 22,135 76,314 XP Inc. Key factors inflating our balance sheet [B] Retirement Plans ▪ AUM from XP Vida & Previdência is accounted in both assets and liabilities [C] Float ▪ Uninvested cash from clients allocated in sovereign bonds 21#22Net Asset Value (in R$ mn) Financial Assets Securities & Derivatives Loans Repos Other (-) Financial Liabilities (-) Retirement Plans Liabilities (-) Market Funding Operations (-) Repos (-) Securities & Derivatives (-) Other (-) Float (=) Adjusted Gross Financial Assets 4022 3022 177,761 171,130 140,481 137,455 22,211 20,411 7,604 8,047 7,465 5,216 11 (146,194) (140,597) (45,734) (42,714) (38,094) (35,818) (31,790) (31,429) (22,135) (24,145) (8,442) (6,490) (12,792) (11,391) 18,775 19,142 Net Asset Value (-) Adjusted Gross Financial Assets Gross Debt (-) Borrowings (-) Debentures (-) Structured financing (-) Bonds (-) Net Asset Value NAV = Adj. Gross Financial Assets 4022 18,775 (9,389) (1,866) (2,029) (1,934) (3,561) 9,385 Gross Debt XP Inc. 3022 19,142 (9,298) (1,901) (1,956) (1,798) (3,642) 9,844 22#23XP Inc.