Pagseguro Digital Ltd. · NYSE:PAGS

Pagseguro Digital — Q4 2024 Earnings Presentation

26 slides from Pagseguro Digital's earnings presentation, Feb 20, 2025

  1. Slide 1: Q4 2024 Earnings Presentation

    PagSeguro Digital Ltd. (NYSE: PAGS) Q4 2024 Earnings Presentation February 20, 2025 | Webcast: click here to register

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

    Forward-looking statements and 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 constr

  3. Slide 3: Q4 2024 Highlights

    Q4 2024 HIGHLIGHTS

  4. Slide 4: All-time high performance, combining growth and profitability

    2024 highlights All-time high performance, combining growth and profitability Operational Highlights Total Clients TPV 2024 Credit Portfolio Total Funding² Million R$ (Expanded)¹ R$ R$ 33.2 518B 48B 43B (+2.1mn YoY) (+32% YoY) (+46% YoY) (+52% YoY) Financial Highlights Net Revenues 2024 Net Income³

  5. Slide 5: Steady long-term growth and results in every economic cycle

    2024 Highlights Steady long-term growth and results in every economic cycle 2024 Environment Jan/24 ’24 Projections¹ Year End ▪ Interest rate volatility and hiking cycle SELIC Rate (Year End) 9.00% 12.25% Inflation (IPCA) 3.90% 4.83% ▪ Inflation above target and pressured Brazilian FX FX (USD/BRL) 5

  6. Slide 6: Business Units

    BUSINESS UNITS

  7. Slide 7: Strategy Update: Disciplined strategy execution

    Strategy Update Disciplined strategy execution Clients Segmentation Moving up in the Pyramid, accessing Our DNA profitable retail markets Payments Banking ▪ Disruption: Continuous exploration of new growth verticals - + + + ▪ Ownership: High Performance execution culture ▪ Financial Discipline and a

  8. Slide 8: Recap on how we build PagBank for the long term

    Payments + Banking Recap on how we build PagBank for the long term PagBank Ecosystem (Banking + Payments) Increase volume and customer transactionality ▪ Complete payment offer (in-store, e-commerce and cross-border) ▪ Cards issuance (Credit, Debit, and pre-paid) and PIX (QR Code, P2P, P2M) ▪ Collec

  9. Slide 9: Focus on maximizing value from our customer base

    Payments + Banking Focus on maximizing value from our customer base Total Clients Total Active Clients¹ Highlights Million Million +7% +3% ▪ Client Engagement Key Factors 33.2 17.7 17.8 ▪ Seamless user experience 32.1 17.2 31.1 ▪ Payments: improved SLAs, robust PIX rail and constant addition of paym

  10. Slide 10: TPV growth remain strong and above market

    Payments TPV growth remain strong and above market Cards TPV Total TPV TPV per Active Merchant Highlights R$ Billion PIX +15% Y/Y R$ Thousand +28% +33% ▪ TPV Growth 146 22.9 Across all segments, focusing on profitability, with effect on 136 +7% 21.2 +8% client mix (LMEC/Online) and product mix (PIX)

  11. Slide 11: Gaining customer principality and improving banking revenue contribution

    Banking Gaining customer principality and improving banking revenue contribution Cash-in¹ Cash-in per Active Banking Client Highlights R$ Billion R$ Thousand +41% +35% ▪ Cash-In 93 5.4 Strong growth reflecting higher principality from individuals 84 +11% 4.9 +10% 4.0 ▪ App Access 66 App usage increa

  12. Slide 12: Deposits increased 31% YoY; Cost of funding reduced 400bps

    Funding Deposits increased 31%YoY; Cost of funding reduced 400bps Total Funding APY2 on Total Deposits R$ Billion % of CDI R$ million 4Q24 4Q23 YoY % 3Q24 QoQ % Checking Accounts 12.0 11.4 6% 10.5 14% 94% 92% 90% Certificate of Deposits 17.0 13.1 30% 17.5 -3% 72% Interbank Deposits 7.1 3.1 n.a. 6.2

  13. Slide 13: Total Credit Portfolio +36% YoY, with NPL90 180bps below market level

    Credit Total Credit Portfolio +36% YoY, with NPL90 180bps below market level Credit Portfolio Credit Portfolio Evolution R$ Billion % Credit Portfolio +36% R$ million 4Q24 4Q23 YoY % 3Q24 QoQ % 3.4 3.2 Payroll Loans 2.5 1.4 86% 2.3 8% 2.5 Credit Card 0.8 0.8 2% 0.7 11% 73% 73% Working Capital 0.1 0.

  14. Slide 14: Financial Results

    FINANCIAL | RESULTS ‘: "e It

  15. Slide 15: Total revenue +18% YoY, banking represents 18% of the gross profit

    Revenue and Gross Profit Margin Total revenue +18% YoY, banking represents 18% of the gross profit Total Revenue and Income Payments: Total Revenue and Income R$ Million R$ Million 40% 39% 38% +14% 4,336 4,602 4,022 +18% 38% 36% 35% 5,115 4,831 +6% 4,347 Q4-23 Q3-24 Q4-24 1,943 Gross Profit Margin 1

  16. Slide 16: Gross Profit driven by accretive expansion in Banking

    Gross Profit Margin Gross Profit driven by accretive expansion in Banking Gross Profit Evolution QoQ Payments: Gross Profit R$ Million R$ Million +3% +2% 1,542 1,559 1,589 +2% (10) (17) 111 (54) 1,943 1,897 16 Banking 18.2% Q4-23 Q3-24 Q4-24 17.8% Banking: Gross Profit R$ Million +80% Payments 338 3

  17. Slide 17: Continued gaining of Operating leverage, +74bps QoQ

    P&L Continued gaining of Operating leverage, +74bps QoQ Total Expenses Highlights R$ Million Q4-24 Q4-23 YoY % Q3-24 QoQ% Total Revenue and Income 5,115 4,347 18% 4,831 6% 1. 1 Financial Costs, preserving efficiency despite Brazilian interest rate hike by reducing yields on Deposits and diversifying

  18. Slide 18: EPS +25% YoY, growing ROAE with Solid capital structure

    Balance Sheet EPS +25%YoY, growing ROAE¹ with Solid capital structure Net Income (GAAP, Non-GAAP) Equity and ROAE¹ R$ Billion ROAE R$ Million +28% 16.5% 2,268 15.0% 14.8% 152 28% 1,768 14.4 14.7 13.2 BIS Ratio² +21% 114 572 631 AAA.br 2 520 32 2,116 32 41 FY24 ROAE 1,654 FY23 ROAE 599 13.2% 15.2% br

  19. Slide 19: Outperforming FY24 Guidance, despite challenging year

    Outlook Outperforming FY24 Guidance, despite challenging year FY 2024 FY24 Guidance Total Payment Volume R$ 518B R$480B R$505B +32% y/y Gross Profit Margin >40% % Total Revenue and Income 39.4%¹ Net Income R$ 2.3B R$2.1B R$2.2B Non-GAAP +28% y/y Capital Expenditures R$ 2.3B R$2.0B R$2.2B +18% y/y D&

  20. Slide 20: 2025 Guidance

    Outlook 2025 Guidance FY25 Guidance range Gross Profit 7% 11% % y/y EPS (GAAP, diluted) 11% 15% % y/y Capital Expenditures R$ 2.2B R$ 2.4B R$ Billion FY25 Macro Assumptions¹ GDP (YoY) 2.0% Annual SELIC (year end) 15.0% CPI (IPCA) 5.6% 1 – Company internal estimates Please see the Appendix for a reco

  21. Slide 21: Closing Remarks

    CLOSING REMARKS

  22. Slide 22: Closing Remarks

    Closing Remarks Closing Remarks FY 2024 Takeaways ▪ Strong TPV growth (+32% YoY) led by our core segment performance (MSMB) ▪ Consistent growth from our Banking platform (+34% YoY Net Revenue | now 18% of total gross profit) ▪ Resilient result with sustainable increasing EPS (+30% YoY) 2025 Outlook

  23. Slide 23: 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

  24. Slide 24: Appendix

    eg | | AK a \\ APPENDIX “ae

  25. Slide 25: 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 Q4-24 Net Income | GAAP 370 385 411 488 483 504 531 599 Non-GAAP Items 22 30 29 32 39 38 41 32 Long-term Incentive Plan 19 30 30 32 41 38 41 28 Amortization of Fair Value Adjustment 5 5 3 5 5 5 5 5 Amorti

  26. Slide 26: Investor Relations and Media Press

    YouTube Logo PNG, Transparent YouTube Linkedin - ícones de mídia Logo Icon Free DOWNLOAD social 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 — Q4 2024 Earnings Presentation on 6ix