Financial information

Creditas financial results Q4 2021

São Paulo, 4th March 2022

Today, we announce the results corresponding to the 4th quarter of 2021*.

In Q4-21 we posted R$322.4mn in revenues, representing 27% increase compared to Q3-21 and 209% increase compared to Q4-20. We continue delivering high growth rates and gaining market share as all our divisions are experiencing strong momentum despite a typically weak quarter in credit demand. The results for fiscal year 2021 show R$870.0mn in revenues with 159% annual growth, accelerating the fastest since 2018 when we were less than a tenth of our current size.

New origination (including loan origination and insurance premiums) reached R$1,024.0mn, growing our portfolio under management to R$3,717.1mn or 198% increase from a year ago. All 3 ecosystems (Auto, Home and Employee Benefits) performed at record levels and showed significant progress of cross selling between our three core products: lending, insurance, and consumer solutions.

Contribution margin (discounting funding costs, servicing costs, credit provisions and taxes) accounted for 43.6% of revenues from 50.8% a year ago as a result of (1) leverage maximization of our portfolio funded by external capital, including our new warehousing facilities and (2) higher funding costs linked to our CDI-indexed securitization vehicles. We posted a net loss of -R$137.6mn in the quarter, representing 43% of revenues compared to 55% in Q4-20, as we continue gaining scale to cover the cost of developing our technology and growing our portfolio.

In Q4-21 we completed three new Debt Capital Markets securitizations, for a total of R$1,550mn. We issued one new FIDC (FIDC Creditas Auto VIII) invested by both institutional investors and individuals as well as a new CRI backed by a diversified portfolio of home equity loans both facilities being AAA local rating by S&P for the senior quotas – a landmark for the Brazilian securitization market. We also completed the first 2 tranches of our warehousing FIDCs with Nubank. In 2021, our Debt Capital Markets efforts have successfully completed securitizations up to R$3.2bn showing high resilience to support the expansion of our credit portfolio endorsed by professional investors’ appetite for our unique asset class.



Portfolio under management – Includes (i) Outstanding net balance of all our lending products net of write-offs and (ii) outstanding premiums of our insurance business. Our credit portfolio is mostly securitized in ring-fenced vehicles and funded by both institutional and retail investors. Our insurance portfolio is underwritten by 14 insurance carriers.

New Origination – Includes (i) volume of new loans granted and (ii) insurance premiums issued in the period. If new loans refinance outstanding loans at Creditas, new loan origination includes only the net increase in the customer loan.

Revenues - Income received from our operating activities including (i) recurrent interest from the credit portfolio, (ii) recurrent servicing fees from the credit portfolio related to our collection activities, (iii) up-front fees charged to our customers at the time of origination, (iv) up-front revenues recognized at the time of the securitization of the loans, (v) take rate of the insurance premiums issued, (vi) margin of cars sold (metal margin plus service fees minus reconditioning costs) and (vii) other revenues from both lending and non-lending products.

Contribution Margin - Margin calculation deducts from our revenues (i) costs of servicing our portfolio including headcount, data consumption and third-party costs, (ii) costs incurred in our non-lending businesses necessary to generate revenues, (iii) funding costs of our portfolio comprising interests paid to investors and costs related to the issuance of our securitization (e.g. auditors, rating agencies, advisors), (iv) credit provisions related to our credit portfolio and (v) sales taxes related to fees, interest and other revenues.

Net Income - Net income deducts from our Contribution Margin (i) headcount not included in the portfolio servicing cost, (ii) general overhead cost, (iii) customer acquisition cost and (iv) other income and expenses.

*Pro-forma unaudited financials representing the management view of the performance of the company



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