Nu Holdings Ltd.

Ladies and gentlemen, welcome to New Holdings Conference Call to discuss the results for the third quarter of 2022. A slide presentation is accompanying today's webcast, which is available in News Investor Relations website www.investors.new in English and www.investidores.nu in Portuguese. This conference is being recorded and the replay can also be accessed on the company's IR website. This call is also available in Portuguese. To access it, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, select Mute Original Audio. Para acessar nossa conferência em português, clique no ícone do globo ao lado inferior direito da sua tela zoom e selecione a opção Portuguese Room. Ao acessar a nova sala, certifique-se de mutar o áudio original. Please be advised that all participants will be in listen-only mode. You may submit online questions at any time today, using the Q&A box on the webcast. I would now like to turn the call over to Mr. Jörg Friedman, Investor Relations Officer at New Holdings. You may proceed.

Thank you very much, operator, and thank you all for joining our earnings call today. If you have not seen our earnings release, a copy is posted in the Results Center section of our Investor Relations website. With me on today's call are David Velez, our Founder, Chief Executive Officer and Chairman, Youssef Larach, our President and Chief Operating Officer, and Guilherme Lago, our Chief Financial Officer. Additionally, Jagi Dugal, our Chief Product Officer, will join us for the Q&A session of the call. Throughout this conference call, we will be presenting non-IFRS financial information, including adjusted net income. These are important financial measures for the company, but are not financial measures as defined by IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information are available in our earnings press release. Unless noted otherwise, all growth rates are on a year-on-year, effects-neutral basis. I would also like to remind everyone that today's discussion might include forward-looking statements, which are not guarantees of future performance, and therefore, you should not put a new reliance on them. These statements are subject to numerous risks and uncertainties, and could cause actual results to differ materially from the company's expectations. Please refer to the forward-looking statement's disclosure in the company's earnest press release. Today, our founder and CEO, David Velez, will discuss the main highlights of our third quarter 2022 results and some of the opportunities ahead. Subsequently, Guilherme Lago, our CFO, and Youssef Larache, our President and COO, will take you through our financial and operating performance for the quarter, after which time, we will be happy to take your questions. Now, I would like to turn the call over to Davi. Davi, please go ahead.

Thanks, Jorge. Hello, everyone. Thank you for being with us today. I'm happy to share that Nuo turned in another strong quarter. In our nine-year history as a company, we have already seen a lot. We saw a GDP contraction of 7% during the years of 2015-2016, the largest recession in Brazilian history. We saw presidential impeachment. We saw right-leaning governments and left-leaning governments coming and going across the three countries we operate. And today, we see a slightly more volatile environment than we saw in 2021, which brings a bit more caution, but that also creates opportunities to continue capitalizing on our long-term thesis that remains intact. The future of financial services will be built by technology companies, and we're in the lead position in Latin America, one of the largest regions in the world. Today, I'm happy to report that during the third quarter, new reporters break even at the holding level. Posting a net profit of $7.8 million and an adjusted net profit of $63.1 million, while growing revenue at 171% year-over-year and welcoming more than 5 million new customers, becoming the sixth largest financial institution in Latin America by number of active customers. This mix of growth and profitability shows we are being able to balance appropriately the significant growth opportunity we have ahead while strengthening the earnings fundamentals of our business model. We will continue to reinvest our profits to fuel our growth and long-term value creation. During the third quarter, we continue to see progress among all our main business metrics. We passed 70.4 million total customers across our three countries, while seeing our activity rate per customer increase to a new high of 82%. Our purchase volume grew 75% year over year to $21.2 billion, already reaching a market share of 12% in Brazil. And while we have increased the level of resilience of our credit underwriting to account for the more volatile macro environment, our credit portfolio was still able to grow 83% year over year to $9.7 billion, while being fully funded by our own retail deposits that grew to $14 billion. While our business opportunities started by unbundling financial services through a fully digital strategy, Our current imperative is to rebundle and build a diversified, multi-product, multi-country and multi-segment platform. Our customers actively tell us that they want to consolidate their entire financial lives with new. And so this rebundling continues to progress at an accelerated pace, driven by significant existing demand from a base that now accounts for about 40% of the adult population of Brazil. Let me share with you our progress on each of these fronts. We have been able to develop and launch innovative products that are fundamentally better than what one could find in the markets in which we operate, always looking to have the highest Net Promoter Score in every category we choose. The velocity with which we develop and launch new products has accelerated recently as we invest significantly in our own technology platform and ways of working. As you can see on this chart, active users are growing in almost all of our products on a double or triple digit year-over-year basis. New products continue to post even more impressive figures. For instance, personal loans had a 279% increase in active customers over the past year. Our active SMEs accounts reached 1.3 million, an increase of 117% in a year. New invest customers expanded 148% year-over-year. And finally, our recently launched crypto product has grown to 1.3 million active customers, less than six months after launch. Notice that a lot of this growth is driven by the secular trends of digitalization of the economy and products that solve real customer pains and have little to do with the economic cycle. We're still at the early stages of strengthening our platform with products that will further support our product cross-sell strategy and our revenue accretion. We will continue to manufacture our own products when we believe we can be the best-in-class product manufacturer and like their unit economics. But we will also continue to leverage on product partners to complement our skillsets and balance sheet whenever applicable. Our forthcoming launches include collateralized loans, savings accounts in Mexico, and financial planning tools, among others, that will make our platform have an even stronger value proposition for our customers. The second key pillar of our business model is expanding our multi-country platform. We believe the strength of our technology platform has positioned us favorably to cross borders effectively and efficiently innovating how retail banking grows internationally. Together, Mexico and Colombia can be bigger than Brazil for us and we are growing in those markets faster than we grew in Brazil. We could not be more excited with the early success of our multi-country strategy. We have already become the number one issuer of new credit cards in both Mexico and Colombia, and the growth has not shown any sign of slowing down. Although impressive already, client virality tends to accelerate down the road. Once we launch our deposit-taking products in each of Mexico and Colombia, customer growth is expected to experience step-change increases, as we have seen in Brazil. And this change is to happen in both countries over the course of the coming year. The third pillar of our platform is to advance into multiple client segments all at once, as there is customer pain across all segments. We wanted to highlight this point here as we have heard from many investors a fair amount of confusion as to who the typical Luban customer is. As you can see from the demographic breakdown of our current customer base presented in this slide, we have made strong inroads across all demographic segments in Brazil. In fact, our customer segment distribution is similar to those of incumbent banks in the country, highlighting our significant potential to expand further our Average Revenue Productive Customer, or RPAC, as we advance in our roadmap. As of the end of Q3 2022, our RPAC was only one-fifth the average RPAC of Brazilian incumbent banks, which creates significant upside in our monetization plan as we continue our product diversification. Notice also that 8% of our customer base belongs to the high-income group, which is similar to other major financial institutions in Brazil. It also provides good diversification through more challenging macroeconomic cycles. I want to remind you that everything we build to date started from a principle of building the absolute best product in each category. We believe that in a more competitive environment, customers can finally choose the very best product experience. This simple insight continues to be our North Star as a company. This is best captured by our Net Promoter Score metric, which, after almost a decade of our foundation, continues to command indisputable leadership across all of the markets in which we operate. We believe this metric is a leading indicator for growth and then for profitability. We have delivered a strong customer experience that engenders unique loyalty levels among our clients. We chose to make customer experience our most important marketing investment. This has worked well across Brazil, Mexico and Colombia. 70% to 80% of our 70 million plus customers have come to Nu organically, mostly through word of mouth, proving that our formula continues to be effective. We believe to have achieved DAO over MAO ratios of leading social media players, above 50%, as can be observed in this evolution chart. In our view, this demonstrates the opportunity we have to build a powerful and comprehensive consumer platform evolving from a digital banking offering. A very large and engaged consumer base enables a lot of future optionalities in the ecosystem as we go beyond financial services. We're excited with these opportunities and the roadmap ahead of us over the coming years. With that, I would like to pass the floor to our CFO, Guilherme Lago, who will walk you through more details of our results. Thank you.