Pagseguro Digital Ltd. · NYSE:PAGS
Pagseguro Digital — Q1 2022 Earnings Presentation
25 slides from Pagseguro Digital's earnings presentation, Jun 8, 2022
Slide 1: Earnings Release 1Q22
ings Earn Release 1Q22 LLLLLLLLL 2 I {LLL | | , 2022 June 8 4254 5678/9101 7788 LISTED NYSE
Slide 2: First quarter all-time high Net Income | Non-GAAP
1. First quarters all-time high Net Income | Non-GAAP.
Slide 3: PAGS TPV chart
152.2 81.4
Slide 4: PAGS TPV and Take Rate
PAGS TPV totaled R$ 152.2 billion , an increase of +87% vs. 1Q21 mainly due to the growth of 60% in PagSeguro TPV, higher engagement on PagBank services and better unit economics of PagBank products. PAGS Take Rate totaled 2.60% in 1Q22, an increase of +21 bps vs. 2.39% in 1Q21. This increase reflec
Slide 5: PagSeguro TPV 1Q21 vs 1Q22
80.1 50.0 1Q21 1Q22
Slide 6: PagSeguro TPV totaled R$ 80.1 billion
PagSeguro TPV totaled R$ 80.1 billion , an increase of +60% vs. 1Q21 mainly due to (i) larger share of wallet in cards payments, driven by the migration from cash to plastic; (ii) market share gains, boosted by HUBs execution to also serve small and medium businesses (SMBs), both driven to a higher
Slide 7: Active Merchants 7.7 million
73 7.7
Slide 8: PagSeguro Active Merchants and TPV per Merchant
PagSeguro ended the quarter with 7.7 million Active Merchants , an increase of +5% compared to 1Q21, consolidating its lion share in number of Active Merchants in the Brazilian Acquiring Industry. Since the beginning of the year, PagSeguro have been more selective on gross adds, focusing on clients
Slide 9: PagBank TPV
72.1 31.4
Slide 10: PagBank Net Take Rate
Slide 11: PagBank Credit Portfolio mix
2.1 49% 0.8 5A% 41% 43% 3% 9% 1Q21 1Q22 Working Capital Credit Card _—
Slide 12: PagBank Credit Portfolio and Total Deposits
PagBank Credit Portfolio reached R$ 2.1 billion in 1Q22, an increase of +166% vs. 1Q21. This increase reflects higher and diligent credit underwriting, primarily on secured loans such as Payroll Loans and FGTS early prepayment, reaching 9% of share in the Credit Portfolio this quarter. Total Deposit
Slide 13: PagBank Clients
14.8 1021
Slide 14: PagBank Clients ended the quarter with 23.5 million
PagBank Clients ended the quarter with 23.5 million , an increase of +59% vs. 1Q21, and 14.3 million Active Clients , an increase of +57% vs. 1Q21. This increase is mainly related to higher penetration in consumers segment which represents 53% of PagBank clients vs. 38% in 1Q21. This increase also r
Slide 15: Total Revenue and Income
©) Transactio ivi
Slide 16: Transaction Costs
Transaction Costs reached R$ 1,303 million in 1Q22, an increase of +54% from R$ 846 million reported in the 1Q21. As a percentage of the total of our Revenues from Transaction Activities and Other Services, our Transaction Costs increased 2.3 p.p., to 63% in the 1Q22 from 61% in the 1Q21, due to:
Slide 17: Financial Expenses change
+1,298% 403 4Q21
Slide 18: Financial Expenses
Financial Expenses totaled R$ 621 million in 1Q22, up +1298% from R$ 44 million in 1Q21. This increase is explained by two main factors (i) R$ 294 million due to the hike of SELIC from 2.12% in 1Q21 to 10.37% this quarter; (ii) R$ 283 million related to higher volume of TPV and higher credit card mi
Slide 19: Gross Profit
Gross Profit totaled R$ 1,475 million in 1Q22, up +28% from R$ 1,152 million presented in 1Q21. Opex & Other Costs Non-GAAP | R$ Million
Slide 20: Opex & Other Costs
Opex & Other Costs , which includes Marketing and Advertising, Personnel Expenses, Chargeback and Other Expenses, totaled R$ 810 million , an increase of +40% compared to R$ 579 million in 1Q21. When including Non-GAAP expenses of R$ 28 million, GAAP Opex & Other Costs totaled R$ 838 million .
Slide 21: Depreciation and Amortization
Including Non-GAAP expenses mentioned above, Depreciation and Amortization totaled R$ 249 million Depreciation and Amortization reached R$ 244 million up +59% , from R$153 million in 1Q21. These amounts exclude M&A expenses related to the amortization of fair value assets acquired as well as expense
Slide 22: Adjusted EBITDA and Income Tax Reconciliation
Adjusted EBITDA in 1Q22 amounted to R$ 665 million up +16%, from R$ 573 million reported in 1Q21, mainly related to PAGS repricing during the period, operating leverage gains on HUBs operation and Marketing Investments. Income Tax and Social Contribution Reconciliation GAAP R$ Million 1Q22 1Q21 Var.
Slide 23: Net Income 1Q21, 4Q21, 1Q22
271 1021 4Q21 1Q22
Slide 24: Adjusted EBITDA and Non-GAAP Net Income reconciliation
R$ Million 1Q22 1Q21 Var. y/y 4Q21 Var. q/q Net Income | GAAP 350 271 29% 301 16% (+) Income Tax and Social Contribution 67 89 -25% 67 -1% (+) LTIP Expenses 28 80 -65% 44 -37% (+) Depreciation and Amortization 249 158 57% 226 10% (-) Other Financial Income (42) (35) 20% (44) -4% (+) FX Expenses 13 9
Slide 25: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: June 8, 2022 PagSeguro Digital Ltd. By: /s/ Artur Schunck Name: Artur Schunck Title: Chief Financ