XP Inc. Provides Data on IFA Activity in Brazil - Seite 2

During the last two years, a total of 18 IFA offices, or 3.6% of our current IFA network with a consolidated AUC of approximately R$9.9 billion at the time of the notice of termination, left our platform. Three months after departing XP, just 11% of the funds were transferred directly from our platform to another. See Exhibit 1 below.

In our view, the clients' decision to keep their funds invested with us is something we are very proud of, reflecting our focus on providing the best experience and the trust built over our 19 years of history, always doing the right thing and playing by the rules. Nevertheless, we recognize that we have a lot to improve, and we are working hard at it, always focusing on the customer.

Finally, we would like to reinforce our commitment to all IFAs who are leading a huge transformation in the Brazilian financial market. With around 5,000 new entrants to the profession over the last 5 years, IFAs are, alongside XP, democratizing investments for millions of Brazilians.

Exhibit 1: Direct Custody Migration from Departing Office to New Broker Dealer

(Direct Outflows Until X Months after Exit) / (AUC at Exit Date)

IFA Office		Direct Outflows to New Broker
		3 Months After Exit	6 Months After Exit	12 Months After Exit
1		15%	15%	15%
2		6%	7%	6%
3		2%	4%	7%
4		1%	1%	2%
5		2%	3%	6%
6		3%	4%	5%
7		16%	17%	17%
8		14%	17%	17%
9		2%	2%	-
10		22%	23%	-
11		11%	12%	-
12¹		46%	47%	-
13		15%	16%	-
14		9%	-	-
15		-	-	-
16		-	-	-
17		-	-	-
18		-	-	-
Total AUC (R$ mn)	9,926	11%	13%	7%