Pagseguro Digital Ltd. · NYSE:PAGS

Pagseguro Digital — Q3 2024 Earnings Presentation

27 slides from Pagseguro Digital's earnings presentation, Nov 13, 2024

  1. Slide 1: Earnings Presentation Q3 2024

    Earnings Presentation Q3 2024 PagSeguro Digital Ltd. (NYSE: PAGS) Webcast: click here to register November 13, 2024

  2. Slide 2: Forward-looking statements; Non-GAAP financial measures

    Forward-looking statements; Non-GAAP financial measures Forward-looking statements This presentation, prepared by PagSeguro Digital Ltd (“we” or the “Company”), is solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be construed

  3. Slide 3: Q3 Highlights

    Q3 Highlights © PagBank

  4. Slide 4: All-time high net income, combining TPV expansion and profitability

    Quarter highlights All-time high net income, combining TPV expansion and profitability Operational Highlights Total Clients TPV Credit Portfolio Total Funding² Million R$ (Expanded)¹ R$ R$ 32.1 136B 44B 38B (+1.9mn YoY) (+37% YoY) (+52% YoY) (+72% YoY) Financial Highlights Net Revenues Gross Profit

  5. Slide 5: Strategy Update: Addressable Market

    Strategy Update Win in MSMB, grow on on-line and diversify revenues beyond payments Clients Segmentation Our DNA Moving up in the Pyramid, accessing profitable larger addressable markets ▪ Disruption: Continuous exploration of new growth verticals Payments Banking - + + + ▪ Ownership: High Performan

  6. Slide 6: Business Units

    Business Units © PagBank

  7. Slide 7: Building the PagBank for the long term

    Strategy Update Building the PagBank for the long term PagBank Ecosystem (Banking + Payments) Increase volume and customer transactionality ▪ Complete payment offering (in-store, e-commerce and cross-border) ▪ Cards issuance (Credit, Debit, and pre-paid) and PIX (QR Code, P2P, P2M) ▪ Collection Plat

  8. Slide 8: Focusing on maximizing value from our customer base

    Payments + Banking Focusing on maximizing value from our customer base Total Clients Total Active Clients¹ Highlights Million Million +6% +2% ▪ Client Engagement Key Factors 31.6 32.1 17.7 17.7 17.3 ▪ Seamless user experience 30.2 ▪ Payments: improving SLAs, robust PIX rail and constant addition of

  9. Slide 9: Record TPV in all segments, growing more than 2x faster than the market

    Payments Record TPV in all segments, growing more than 2x faster than the market Cards TPV Total TPV TPV per Active Merchant Highlights R$ Billion PIX +23% Y/Y R$ Thousand +37% +43% 136 21.2 ▪ TPV Growth 124 Across all segments, focusing on profitability with effect on 15% 19.2 client (LMEC/Online)

  10. Slide 10: Increasing Cash-In due to higher customer principality

    Banking Increasing Cash-In due to higher customer principality Cash-in¹ Cash-in per Active Banking Client Highlights R$ Billion R$ Thousand ▪ Cash-In +49% +43% Fast growth due to higher engagement through a complete set of products offering 83.9 4.9 76.4 4.4 ▪ App Access App usage increasing faster

  11. Slide 11: Total Credit Portfolio +30% YoY, with NPL90 200bps below market

    Credit Total Credit Portfolio +30% YoY, with NPL90 200bps below market Credit Portfolio Credit Portfolio Evolution R$ Billion % Credit Portfolio 3.2 3Q24 3Q23 YoY % 2Q24 QoQ % 2.9 2.5 Payroll Loans 2.3 1.2 98% 2.0 17% Credit Card 0.7 0.8 -14% 0.7 0% 73% 48% 69% Working Capital 0.2 0.5 -66% 0.2 -20%

  12. Slide 12: Robust deposits franchise reducing funding costs by 400bps QoQ

    Funding Robust deposits franchise reducing funding costs by 400bps QoQ Total Funding APY2 on Total Deposits R$ Billion % of CDI 96% R$ million 3Q24 3Q23 YoY % 2Q24 QoQ % 93% Checking Accounts 10.5 9.7 9% 11.5 -9% 92% Certificate of Deposits 17.5 9.6 82% 16.7 5% 72% 68% Interbank Deposits 6.2 2.3 168

  13. Slide 13: Consolidated Financial Results

    Consolidated Financial Results

  14. Slide 14: Total revenue and income +20% YoY, Banking segment +52% YoY

    Revenue and Gross Profit Margin Total revenue and income +20% YoY, Banking segment +52% YoY Total Revenue and Income Payments: Total Revenue and Income R$ Billion R$ Million 38.1% 39.9% 39.3% +17% 4,122 4,336 +20% 3,700 38% 4.8 37% 36% 4.6 4.0 Q3-23 Q2-24 Q3-24 Gross Profit Margin Banking: Total Rev

  15. Slide 15: Gross Profit driven by accretive expansion in Payments and Banking

    Gross Profit Margin Gross Profit driven by accretive expansion in Payments and Banking Gross Profit Evolution QoQ R$ Million +4% 149 (98) (5) (31) 1,897 1,819 (14) 76 18% Banking 14% 86% 82% Payments Gross Profit Banking Payments Payments Clients Payments Payments Financial Gross Profit 2Q24 Perform

  16. Slide 16: Operational expenses' leverage of 20bps QoQ

    P&L Operational expenses’ leverage of 20bps QoQ Total Expenses Highlights R$ Million Q3-24 Q3-23 YoY % Q2-24 QoQ% Total Revenue and Income 4,832 4,026 20% 4,557 6% ▪ 1 Financial Costs discipline and larger volumes of Checking Accounts and CDs even reducing yields’ level paid to mitigate Transaction

  17. Slide 17: EPS +31% YoY, growing ROAE with solid capital structure

    Balance Sheet EPS +31%YoY, growing ROAE¹ with Solid capital structure Net Income (GAAP, Non-GAAP) Equity and ROAE¹ R$ Million R$ Billion ROAE 14.4% 14.8% 12.9% 31% +30% BIS Ratio² +12% 542 572 AAA.br 2 440 38 41 14.3 14.4 29 12.9 504 531 brAAA 2 411 Q3-23 Q2-24 Q3-24 Q3-23 Q2-24 Q3-24 Net Income n-G

  18. Slide 18: On track to deliver expected 2024 results

    2024 Guidance On track to deliver expected 2024 results 9M 2024 FY24 Guidance Total Payment Volume R$ 372B R$480B R$505B +32% y/y Gross Profit Margin 39.9% >40% % Total Revenue and Income Net Income R$ 1.6B R$2.1B R$2.2B Non-GAAP +31% y/y Capital Expenditures R$ 1.8B R$2.0B R$2.2B +21% y/y D&A + POS

  19. Slide 19: Closing Remarks

    Closing Remarks © PagBank

  20. Slide 20: Closing Remarks

    Closing Remarks Closing Remarks 1▪ Strategy: win on MSMB, focus on on-line expansion and diversify revenues beyond payments 2▪ All time high net income, with consistent growth track record, despite economic cycles and market dynamics 3▪ Banking Performance with revenue expansion (+52% YoY) driven by

  21. Slide 21: Q&A

    Q&A To ask a live question via audio, please use the “raise hand” button to join the queue. Once you are announced, a request to activate your microphone will appear on your screen. Please ask all your questions at once. You can also write your question directly into the Q&A icon on the lower part o

  22. Slide 22: Appendix

    Appendix © PagBank

  23. Slide 23: Net Income Reconciliation and EPS

    Appendix Net Income Reconciliation and EPS R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Net Income | GAAP 370 385 411 488 483 504 531 Non-GAAP Items 22 30 29 32 39 38 41 Long-term Incentive Plan 19 30 30 32 41 38 41 Amortization of Fair Value Adjustment 5 5 3 5 5 5 5 Amortization of Capitali

  24. Slide 24: Net Cash Balance Reconciliation

    Appendix Net Cash Balance Reconciliation R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Assets 37,685 37,205 41,574 49,109 53,013 59,969 60,546 Cash and Cash Equivalents 1,816 1,724 1,975 2,899 4,366 1,374 720 Financial Investments 1,064 1,122 1,078 3,309 4,399 4,844 4,838 Accounts Receivable,

  25. Slide 25: New disclosure model for Gross Profit since Q1 2024

    Appendix New disclosure model for Gross Profit since Q1 2024 Prior Current R$ million Q1-23 Q2-23 Q3-23 Q4-23 Q1-23 Q2-23 Q3-23 Q4-23 Total Revenue and Income 3,750 3,826 4,026 4,347 3,750 3,826 4,026 4,347 (-) Other Financial Income (65) (65) (66) (73) - - - - (+) FX Expenses 17 9 10 9 - - - - (-)

  26. Slide 26: New disclosure model for Banking revenues

    Appendix New disclosure model for Banking revenues R$ million Q1-23 Q2-23 Q3-23 Q4-23 Prior Total Revenue and Income 331 243 260 253 Current Total Revenue and Income 395 308 326 326 Current (-) Prior Total Revenue and Income (Other Financial Income) 65 65 66 73 26

  27. Slide 27: Investor Relations and Media Press

    YouTube Logo PNG, Linkedin - Transparent ícones de YouTube Logo Icon mídia social Free DOWNLOAD grátis Investor Relations Website: https://investors.pagbank.com/ E-mail: ir@pagbank.com Address: Av. Brigadeiro Faria Lima, 1384, 10th floor | São Paulo Zip Code (CEP): 01451-001 Media Press Website: htt

PagSeguro Digital Ltd. Class A Common Shares — Q3 2024 Earnings Presentation on 6ix