Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

As of December 31, 2022, the Company has allowance for expected credit losses (ECL) related to amounts receivable from credit cards and loans to customers.

The Company recognizes an ECL for the contracts that have experienced a significant increase in credit risk (SICR) subsequent to recognition or are credit impaired (stage 2 and stage 3, respectively), and a twelve-month ECL for all other contracts (stage 1).

To calculate ECL the Company segregates the portfolio of amounts receivable from credit cards and loans to customers based on shared credit risk characteristics, determined by internal scoring models and uses the methodology of the probability of default (PD), the loss given default (LGD) and the exposure at default (EAD), as well as consideration of elements of prevision as unused limits, macroeconomic environment and the impact of changes in future macroeconomic scenarios, including market expectations of Gross Domestic Product (GDP), inflation rate, unemployment rate and interest rate (Selic).

We consider the measurement of the allowance for expected credit losses related to receivables from credit cards and loans to customers as a key audit matter, since it involves significant measurement uncertainties, as a result of the complexity of the models and the subjectivity of the assumptions, specifically: (i) the general methodology of allowance for expected credit losses, including the methods and models used to estimate the PDs, EADs and LGDs and their respective assumptions, as well as the selection of macro variable assumptions incorporated into the calculation; and (ii) identification of an SICR (stage 2) and credit impaired exposures (stage 3).

Our audit procedures included, but were not limited to:

- Evaluation of the design and operational effectiveness, by sampling, of relevant internal controls, including controls related to the models, assumptions and methodology used in measuring the allowance for expected credit losses.

- Assessment, with the involvement of our professionals with specialized skills and knowledge in credit risk:

(i) the general methodology for calculating the allowance for expected credit losses.

(ii) of models and modeling techniques by inspecting model documentation to determine whether models are suitable for their intended use.

(iii) the recalculation of PD, EAD and LGD estimates using the Company's historical data and forward-looking information.

(iv) the relevance of macroeconomic variables considered in future scenarios through regression analysis and historical correlation with these indicators.

(v) testing the accuracy of the allocation of stages according to the Company's criteria through independent re-execution of the allocation, by sampling; and

(vi) the recalculation of the provision for expected credit losses, by sampling.

- Assessment whether the disclosures in the consolidated financial statements consider all relevant information.

Based on the evidence obtained through the procedures summarized above, we consider the measurement of the allowance for expected credit losses to be acceptable, as well as the respective disclosures, in the context of the consolidated financial statements taken as a whole, referring to the year ended December 31, 2022.

On December 31, 2022, the Company has intangible assets, which comprise goodwill from investment acquisitions, for which the Company performs impairment tests at least annually or when there are events or circumstances that indicate that the carrying amount exceeds its fair value. The recoverable amounts of Cash Generating Units (CGUs) are calculated based on their value in use, determined by discounting expected future cash flows to be generated by the continued use of the CGUs assets and their final disposal.

Calculating the value in use of CGUs requires the use of data and significant assumptions used in evaluation models, including discount rate and future growth rate. Future growth assumptions include the projected growth rate and long-term inflation expectations.

We consider the assessment of the recoverable value of intangible assets as a key audit matter, since the subjective judgment of the auditor was required to evaluate the methodology used by the Company and the data and significant assumptions used in determining the discounted cash flows.

Our audit procedures included, but were not limited to:

- Evaluation of the design and operational effectiveness of relevant internal controls, including controls related to (i) review of the budget process; (ii) selection, review and approval of the main assumptions used in the analysis; and (iii) review of the calculation methodology for carrying out the impairment test.

- Evaluation, with the involvement of our corporate finance specialists with knowledge and experience in the sector:

(i) the methodology used to estimate the value in use, comparing it with evaluation practices generally accepted in the market.

(ii) discount rates and future growth rates used in the impairment test;

(iii) adherence to revised projections in relation to realized cash flows; and

(iv) the mathematical precision of certain steps in present value calculations.

- Assessment whether the disclosures in the consolidated financial statements consider all relevant information.

Based on the evidence obtained through the procedures summarized above, we consider the assessment of the recoverable amount of goodwill acceptable, as well as the respective disclosures, in the context of the consolidated financial statements taken as a whole, for the year ended December 31, 2022.