Pagseguro Digital Ltd. · NYSE:PAGS

Pagseguro Digital — Q2 2023 Earnings Presentation

19 slides from Pagseguro Digital's earnings presentation, Aug 24, 2023

  1. Slide 1: Webcast Presentation 2Q23

    Webcast Presentation 2Q23 Aug 24, 2023

  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: Consistent results over the years

    Consistent results over the years brAAA2 Total Finance Volume (TFV) 2Q23 Results R$ Billion 2,113 956 PagBank Clients 29.5M 5 57 269 2015 2017 2019 2021 6M23 Total Finance Volume (TFV) R$2.1T Net Income (Accumulated) GAAP | R$ Billion Equity Position R$12.5B 5.4 7.6 2.9 0.0 0.6 Net Cash Balance R$10

  4. Slide 4: 2Q23 Highlights

    2Q23 Highlights Quality growth driving higher margins ▪ EPS (GAAP): R$ 1.18, +7% y/y ▪ Net Income (Non-GAAP): R$ 415M, +6% y/y ▪ Adj. EBITDA: R$ 849M with margin improvement of +90bps y/y ▪ 29.5M PagBank Clients with TFV1 of R$220B, +26% y/y Disciplined capital allocation driving cash earnings momen

  5. Slide 5: Payments: MSMB TPV outpacing market growth, up +10% y/y

    Payments: MSMB TPV outpacing market growth, up +10% y/y Total Payment Volume MSMB TPV R$ Billion Ex-Large Accounts +8.5% +3.5B 3Q23 QTD1 +10% +4% y/y 92.7 89.2 2Q22 2Q23 TPV per Merchant2 R$ Thousand +15% 13.5 11.8 2Q22 2Q23 2Q22 2Q23 1. From July 1st up to August 15th; 2. TPV per Merchant: TPV / av

  6. Slide 6: Financial Services: 29.5M Clients with Deposits on-platform up +25% y/y

    Financial Services: 29.5M Clients with Deposits on-platform up +25% y/y PagBank Clients Deposits on-platform Total Deposits # Million R$ Billion R$ Billion +18% +25% 24.8 29.5 15.5 18.3 17.6 15.6 15.7 On-Platform 81% 86% Off-Platform 2Q21 2Q22 2Q23 12.5 2Q22 2Q23 PagBank Cash-in1 PagBank APY2 R$ Bil

  7. Slide 7: Credit Portfolio: 52% secured with ongoing downtrend in NPL > 90 days

    Credit Portfolio: 52% secured with ongoing downtrend in NPL > 90 days Credit Portfolio Secured Credit Products R$ Billion % Credit Portfolio 2.8 2.6 23% 2.3 0.5 (0.2) 52% Secured Unsecured 2Q22 Growth 2Q23e Write-Off 1 2Q23 2Q22 2Q23 Product Breakdown NPL > 90 days R$ Billion % Credit Portfolio 2.3

  8. Slide 8: 2Qs All-time high: Gross Profit, Net Income and Cash Earnings

    2Qs All-time high: Gross Profit, Net Income and Cash Earnings 2Q23 Financial Highlights R$ Million R$ Million Total Revenues and Income 1 2Q23 3,826 2Q22 3,911 Var. y/y -2% 1Q23 3,750 Var. q/q 2% +2% q/q in Total Revenue and Income (-) Other Financial Income (65) (45) 45% (65) 1% (-) Transactions Co

  9. Slide 9: 2Q23 Total Revenue and Income bridge

    2Q23 Total Revenue and Income¹ bridge 3,911 ▪ ITC Cap on Prepaid/Debit Cards (offset in Trans. Costs/Fin. Expenses) Financial Services (74) ▪ Mix change towards secured credit products (lower yields/longer durations). Temporary impact on Revenues until portfolio maturation TPV Growth 141 ▪ +4% y/y g

  10. Slide 10: Payments: Gross Profit +11% q/q

    Payments: Gross Profit +11% q/q Total Revenue and Income Gross Profit Gross Profit Bridge R$ Billion R$ Billion R$ Million +4% +11% 1Q23 1,196 3.6 3.7 3.7 1.4 1.3 3.4 3.6 1.3 1.2 Revenues +4% q/q 126 1.2 Trans. Costs +2% q/q (22) Fin. Expenses -2% q/q 41 Chargebacks +3bps (% TPV) (14) 2Q23 1,327 2Q2

  11. Slide 11: Financial Services: Gross Profit R$41M higher than 2Q22

    Financial Services: Gross Profit R$41M higher than 2Q22 Total Revenue and Income Gross Profit Gross Profit Bridge R$ Million R$ Million R$ Million Revenue decrease impacted by: Gross Profit growth driven by: ITC cap on prepaid cards Lower Expected Credit Losses (ECLs) Higher % secured products (long

  12. Slide 12: Costs and Expenses: further operating leverage q/q

    Costs and Expenses1: further operating leverage q/q Financial Expenses Total Losses2 Operating Expenses Consolidated | R$ Million Consolidated | R$ Million Non-GAAP | R$ Million Financial Expenses driven by: Total Losses driven by: OpEx driven by: y/y: higher Brz Interest Rate (SELIC) Credit underwr

  13. Slide 13: Cash Earnings up +24% y/y; CapEx / Revenue down -80bps y/y

    Cash Earnings up +24% y/y; CapEx / Revenue down -80bps y/y Cash Earnings Capital Expenditures D&A (+) POS Write-off R$ Million R$ Million Non-GAAP | R$ Million Cash Earnings impacted by: CapEx impacted by: D&A + POS Write-off impacted by: y/y: discipline allocation and higher cash generation y/y: fo

  14. Slide 14: Solid position with R$10.1B in Net Cash Balance

    Solid position with R$10.1B in Net Cash Balance 2Q23 Balance Sheet Net Cash Balance1 R$ Billion R$ Billion R$ 10.1 Net Cash Balance¹ B 10.1 8.6 3.5 (1.8) (0.2) 42.8 42.8 2Q22 Cash Capital Shares 2Q23 Generation Expenditures Buyback 27.0 Equity Breakdown1 37.2 R$ Billion 11.2 12.2 12.5 3.4 5.4 6.6 7.

  15. Slide 15: Appendix 2Q23

    ‘@) PagBank Appendix 2Q23

  16. Slide 16: Managerial Float change from Payments to Financial Services

    Managerial Float change from Payments to Financial Services¹ ▪ Before 1Q23, Float from Accounts Balance was partially booked in Payments, partially offsetting Financial Exp. ▪ From 1Q23 onwards, 100% of Float will be booked in Financial Services, similar to other financial institutions ▪ For Payment

  17. Slide 17: EBITDA | GAAP and Non-GAAP financial measures

    EBITDA | GAAP and Non-GAAP financial measures Total Costs and Expenses | Non-GAAP are booked in: 1. Transaction Costs; 2. Operating Expenses; 17 3. Depreciation and Amortization.

  18. Slide 18: Net Income | GAAP and Non-GAAP financial measures

    Net Income | GAAP and Non-GAAP financial measures Total Costs and Expenses | Non-GAAP are booked in: 1. Transaction Costs; 2. Operating Expenses; 18 3. Depreciation and Amortization.

  19. Slide 19: Investor Relations Media Press

    Investor Relations https://investors.pagbank.com/ +55 (11) 3914-9524 ir@pagbank.com Av. Brigadeiro Faria Lima, 1384, 10th floor São Paulo | SP CEP: 01451-001 Media Press https://xcom.net.br/ +55 (11) 992-350-009 pagbank@xcom.net.br

PagSeguro Digital Ltd. Class A Common Shares — Q2 2023 Earnings Presentation on 6ix