Banco Santander (brasil) S.a. · BMFBOVESPA:SANB3
Banco Santander (brasil) — Getnet — Merger or Acquisition (February 2021)
22 slides from Banco Santander (brasil)'s merger presentation, February 2021
Slide 1: Getnet Presentation
FEBRUARY, 2021 Getnet Presentation For additional information, please read carefully the notice at the end of this presentation.
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Getnet Adquirência e Serviços In addition to factors identified elsewhere in this presentation, the para Meios de Pagamento S.A. (the “Company”) solely for following factors, among others, may cause actual results to differ informational purposes. Th
Slide 3: Transaction Overview
Transaction Overview 1 2 3 Current Shareholding Structure(1) Spin-off of Getnet(1) Resulting Structure(1) Free Float TS(2) Free Float TS(2) Free Float TS(2) 0.42% 10.04% 89.54% 0.42% 0.42% 10.04% 89.54% 10.04% 89.54% Brasil Brasil Brazil Brasil Brazil Shares of Shares of Free Float Getnet Getnet 100
Slide 4: Transaction Rationale
Transaction Rationale Greater Flexibility for Getnet to accelerate its disruption strategy in the Brazilian means of payments industry and expand the franchise internationally Allows Getnet to have direct access to capital markets, with greater autonomy in the management of its capital structure Emp
Slide 5: Key Milestones and Expected Timeline
Key Milestones and Expected Timeline February 26th April 2nd Circa 180 days(1) D + 12 (2) Santander Brazil Expected Filing with the after filing Record date Shareholders’ Meeting Brazilian Central Bank for BACEN authorization (D) call notice spin-off authorization February 25th April 19th March 31st
Slide 6: Attractive and Sizeable Brazilian Payments Market
Attractive and Sizeable Brazilian Payments Market Market Size TPV as a % of Household Total Payment Volume (BRL Trillion) Consumption (%) CAGR2014-2020: +12.3% 2.0 46.4% 1.8 1.6 1.4 39.0% 1.1 1.1 1.0 34.8% 32.4% 28.2% 28.5% 26.6% 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020
Slide 7: Brazilian Payments Market with Consistent Growth Potential (Cont'd)
Brazilian Payments Market with Consistent Growth Potential (Cont’d) Duopoly Consistent Growth Under Increasing Competition New Growth Cycle Main Competitors Early fintech startup New Regulation and Macro Conditions Incumbents controlled by ✓ Instant Payment Fintech startups ✓ Open Banking the larges
Slide 8: Getnet - A Successful Story
Getnet - A Successful Story Receivable Active Cost per TPV Prepayment Client Base POS Transaction CAGR14-20 2020 2015 2017 2019 2014 Now 2016 2018 2020 Commercial Plan Banking Diversification Digitalization + Efficiency Multiservice + Majority Stake Acquisition + Acquiring +Remaining Platform by San
Slide 9: Top-Notch Performance
Top-Notch Performance TPV Client & POS Base EBITDA & EBITDA Margin (R$bn) (Client in ‘000 & POS in mm) (R$mm; %) 274 1.9 66.0% 1.4 53.5% 53.4% 0.9 891 1,753 187 771 506 1,045 1,153 CAGR 61 28% 2018 2019 2020 Client Base POS POSDevice Devices 2018 2019 2020 2014 2018 2020 Sales by Client Type Distrib
Slide 10: Best in Class Efficiency
Best in Class Efficiency Market Share Market Size (%)(%) Take Rate1 (%) 1.28% 15% 1.04% 10% 0.79% 7% 2014 2016 2020 2018 2019 2020 EBITDA Margin (%) Cost Per Transaction (R$) 66% 0.37 54% 53% 0.35 0.32 2018 2019 2020 2018 2019 2020 GetNet consistently gaining market share since 2014 whilst maintaini
Slide 11: Strategic Positioning
Strategic Positioning Financial 1 Value Unlocking 5 Governance Local to Global 2 Common Shareholder, ✓ Increase Reach and Common Objectives Integration ✓ Boost SMEs Operation in LatAm 4 Efficiency Multiservice Platform 3 ✓ Cost Synergies ✓ E-commerce as a Key Growth ✓ Speed of Execution Channel ✓ Re
Slide 12: Value Unlocking
1 Value Unlocking Santander Brazil crystallizes hidden value for its shareholders Getnet uniquely positioned to grow in a sizable and highly attractive market Transaction will increase transparency through a company listed and comparable to peers Transaction will allow Getnet to scale up more rapidl
Slide 13: Local to Global: PagoNxT
2 Local to Global: PagoNxT HoldCo Consumer Merchant Solutions Trade ▪ Consumer digital products and ▪ Trade solutions for SMEs and other services companies ▪ Integrated financial platform ▪ Use of information & data to promote ▪ E-commerce expansion product development as an international platform L
Slide 14: Local to Global: PagoNxT (Cont'd)
2 Local to Global: PagoNxT (Cont’d) Footprint to Anchor Expansion… …and Solid Fundamentals to Support Growth Santander’s deep knowledge and understanding 01 of local markets POTENTIAL TO EXPAND 02 Solid execution track-record and expertise GLOBALLY Branches: +1,373 Loyal Customers (mm): +3.6 Digital
Slide 15: Multiservice Platform: a true One-stop Shop in the Brazilian Payments Sector
Multiservice Platform: a true One-stop Shop in the Brazilian 3 Payments Sector Multiple Channels Platform E-Commerce Ecosystem Software solutions CHECKOUT ADVISORY Large Corporate Traditional Acquiring GetPay Link TEF – Reconciliation ACQUIRING RECURRING Recurring ENGINE Digital POS E-Commerce Digit
Slide 16: Multiservice Platform: E-Commerce Continues to Grow at a Rapid Pace
Multiservice Platform: E-Commerce Continues to Grow at a 3 Rapid Pace Getnet’s Strong Expansion Strategic Drivers for Scalability and Profitability E-Commerce TPV & YoY Growth (R$bn, %) 273% 231% 246% 354% 177% 226% 177% 181% 201% 81% 132% n.a. 34% 8.0 7.8 ▪ E-commerce default activation (automatic)
Slide 17: Strong Growth among Different Clients
3 Strong Growth among Different Clients Individuals Corporates New Added Clients (thousand) New Added Clients (thousand) CAGR2017-2020: 51% CAGR 2017-2020: 9% External Channel 498 441 256 289 322 & SuperGet 247 launch 7 10 4 5 243 252 281 312 128 144 2017 2018 2019 2020 2017 2018 2019 2020 Retail Wh
Slide 18: Efficiency
4 Efficiency • Economies of scale • Cost dilution • Getnet has the lowest cost per • New technologies transaction in the sector • New opportunities as an open platform and Flexibility • Synergies and efficiency gains as a cornerstone of a global platform • Products and services cross-selling • More
Slide 19: Governance
5 Governance Alignment of Objectives ▪ Same controlling shareholder (Santander Group) with the same objectives (continue to grow strongly and in a profitable way in Brazil and the model in South America/other regions/SMEs) ▪ Preserving a robust business model, powered by a unified commitment to serv
Slide 20: Unique Positioning in the Industry Leveraging Growth
Unique Positioning in the Industry Leveraging Growth Integration with Santander Innovation and efficiency Brazil’s platform as core values Broad Digital culture distribution in the DNA of channels Getnet Bank Agility/Tech Sizable client Strength DNA One-stop-shop multiservice base Scale, technology
Slide 21: Key Financial Highlights
Key Financial Highlights R$ thousands 2018 2019 2020 Net revenue from transaction activities and other services 882,839 910,819 691,746 Net revenue from subscription services and equipment rental 655,560 606,107 526,637 Financial Income 412,968 1,136,455 941,601 Other financial income 70,918 76,949
Slide 22: Getnet
Getnet*