CSU Digital S A : 4Q23 Results Presentation

Earnings Call

Fourth Quarter, 2023

Guidelines and legal warning

Good morning everyone, welcome to CSU's conference call regarding the fourth quarter of 2023. Present in the videoconference today are the CFO and IRO, Pedro Alvarenga, the CTO, Fabiano Droguetti and the Company's IR team. This conference call is being recorded and all participants will be able to listen, see the speakers and follow the presentation.

The presentation will be in Portuguese with simultaneous English translation. For those who wish to listen to the presentation in English, just press the "Interpretation" button on the bottom right corner of the screen and choose the English option.

This presentation may include statements that represent expectations regarding company's future events and results, according to the Brazilian and international regulation of marketable securities. Those declarations are based on suppositions and analyses made by the Company, in accordance with its experience, economic environment, market conditions and future events expected, many of which are outside the company's control. Important factors that may lead to significant differences between actual results and disclosed expectations about future events and results include the company's business strategy, the Brazilian and international market conditions, technology, financial strategy, clients developments, financial markets conditions, uncertainty regarding its future operations, plans, goals, expectations, intentions, among others. Due to these factors, the actual company results may differ significantly than those pointed out or implicit at the expectations and declarations regarding future events and results.

The information and opinion hereby displayed should not be understood as investment recommendation to potential investors, and no investment decision should rely upon the veracity and completeness of that information and opinions. None of the company's representatives will have any responsibility regarding eventual losses that may happen as a result of the use of this presentation's content.

2

Perfomance in 2023

A 4-year plan, defined and well executed, led to consistent results and a solid capital structure. New technologies and products bringing confidence for a new cycle of expansion

Priority #1:	Priority #2:	Priority #3:
Operational consistency	Outstanding financial	New avenues for
and loyalty	performance in	growth
	continuous evolution

Operational

Number of accounts and cards increase to 36.9

million

+24% increase in number of transactions managed

+22% increase in total payment volume (TPV)

Digitalization reaches 95% in CSU Pays and 71% in CSU DX

>90% of contracts renewed

Financial

Net Revenue evolution

• CSU Pays grows steadily to R$ 338 million (+5.4% vs. 2022)
• CSU DX evolved throughout the second half of the year and it was 8% higher in 4Q23 vs 2Q23

EBITDA surpassed R$ 181 million, +9.2% vs. 2022

Net income grows +20.2% and exceeds R$ 88 million

Cash generation reaches R$ 152 million, a conversion ratio of 84%

ROCE, ROE and ROIC of 25%, 22%

e 21%, respectively

New Solutions & AI

Complete digital payments portfolio

Full-service solution for

Embedded Finance arena

Loyalty gains even more strength given the synergy with the new portfolio

CX day-by-day getting more digital and efficient

Hyperautomation for business

processes

AI as a lever for new businesss

3

Our

Results

4

Solutions Portfolio

The only company in the market with solutions for all instances of a financial transaction

Embedded Finance

Tecnhology for Digital Accounts (customer or enterprise) and financial services (Marketplace) via API or White-label app

Loyalty & Incentive

Infrastructure for management of Loyalty and Incentive Programs (Points and Cashback), and for marketplaces for redemption or purchase of goods and services

PaysDX

NEW

Hyperautomation &

AI

Hyperautomation platform for business process management for Exchange, Fraud, Prevention, Onboarding and Data Curation with massive usage of Artifical Intelligence (AI)

Digital Payments

Full service for Card, Pix (instant payments), Pix on Credit (Installments) and Cryptocurrencies operations

Customer Experience

Hybrid infrastructure (technology and people) for customer service, monetization and collection

Both verticals have experienced different growth dynamics in the previous years,
facing intense digitalization, and now are ready for a new cycle of expansion	5

Innovation accelerates growth and productivity

Operational Highlights

			Registered units					Processed transactions			Payment volume (TPV)
			(million)						(million)						(R$ billion)
					35.9	36.9							1,086.0						326.6
										873.2
				30.7														268.1
		27.0								698.4						220.2
							485.2	521.6
22.7
2019	2020	2021	2022	2023			2019	2020	2021	2022	2023				2021	2022	2023
Financial Highlights
	Net Revenue									Gross profit and gross margin
	(R$ million)										(R$ million and %)
															45.6%	51.4%	51.7%
				320.6	338.1								38.1%	43.7%			52.2%			52.7%	52.6%
			286.8											174.9	50.4%	51.2%
															164.8
	229.7				85.0			84.9	86.2
216.9				83.4	83.5				130.9			44.4	42.1	42.7	44.7	45.3
														100.3
													82.6
2019	2020	2021	2022	2023		4Q22	1Q23	2Q23	3Q23	4Q23		2019	2020	2021	2022	2023	4Q22	1Q23	2Q23	3Q23	4Q23
		Solid relationships (>90% of contracts renewed in 2023),			Efficiency and profitability gains (CAGR 21% p.y. since
	recurrence, consistent operational growth and a new portfolio		2019) from the digitization of products and processes
			are the basis for a new cycle of expansion				leveraged by the scalability of the business model

Physical, Virtual

and Digital Cards (mobile and wearables)

Bin Sponsor

Multi-account Virtual Wallets

Transfers and Payments

(TED, Instant Payment - Pix, Pix on Credit, Cryptocurrencies)

Credit Marketplace

Digital Services

Loyalty & Incentive Programs

Shopping Marketplace

6

Focus on earnings while building new growth avenues

Operational Highlights

			+3.9 million			+34.7%			71%
					interactions				average of digitalized
			of managed interactions (4Q23)
				compared to 4Q22			interactions (2023)
Financial Highlights
Net Revenue									Gross profit and gross margin
(R$ million)									(R$ million and %)
	227.2	227.2	216.5									15.6%	15.5%	16.9%	17.7%	18.6%				18.6%
206.9	192.2							12.9%	36.6		16.9%	17.3%	18.2%
											35.4	35.1	34.1
					53.5	49.4			49.5	26.7					9.9
					45.8	47.5						8.3		8.8	9.0
													7.9
2019	2020	2021	2022	2023	4Q22	1Q23	2Q23	3Q23	4Q23	2019	2020	2021	2022	2023	4Q22	1Q23	2Q23	3Q23	4Q23
	Undergoing a profound digital transformation,				Performance focused on higher value-added
	increasing operational volumes and service quality, while		processes, preserving results and increasing margins,
	the chain benefits from lower costs. In addition, important		(reaching 17.7% in 2023, an increase of 4.8 p.p. vs. 2019;
	new avenues for growth and profitability are opening			18.2% in 4Q23), while building new pathways.
			up with the launch of HAS

Omnichannel

Self-service App's

Robotic process automation (RPA) & artificial intelligence (AI)

Chatbots

Customer support through social networks

Mobile support

Hyperautomation of business processes

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Consolidated net Revenue

Expanded portfolio creates new opportunities, increases profitability and brings more stability for different financial cycles

Net revenue grows consistently year after year with digital revenues standing out | (R$ million)

423.8

514.0 537.2 530.2

456.9

138.5			135.7
132.8		132.4
129.4

2019

2020

2021

2022

2023

4Q22

1Q23

2Q23

3Q23

4Q23

CSU Pays gains even more relevance in the business

CSU´s consolidated net revenue mix (%)

Pays

+ 3.0 p.p.

DX 39%

4Q22

61% Pays

DX

36%

4Q23

64% Pays

8

Continuous record breaking of profitability indicators

Gross profit (R$

million) and gross margin (%) nearly doubled

Annual

CAGR +17.6% p.y.

			37.5%	39.4%
		32.3%
25.8%	29.7%
		166.0	201.4	208.9
109.3	135.8
2019	2020	2021	2022	2023

Quartely

39.2%	37.9%	39.2%	40.5%	40.0%
54.3	50.4	50.6	53.6	54.3
4Q22	1Q23	2Q23	3Q23	4Q23

EBITDA (R$ million) and EBITDA margin (%)

fast expansion

Annual

CAGR +14.9% p.y.

	28.6%	29.5%	30.9%	34.2%
24.6%
	130.8	151.5	166.1	181.4
104.1
2019	2020	2021	2022	2023

	30.9%	32.8%	33.3%	35.1%	35.6%
Quartely
42.7	43.5	43.1	46.5	48.2
				+13%
	4Q22	1Q23	2Q23	3Q23	4Q23

Net income (R$ million) and net margin (%) nearly tripled due operational leverage

9

Annual

CAGR +34,.% p.y.

		11.8%	13.7%	16.7%
	10.2%
6.3%
			88.4
			73.6
		60.5
	46.8
26.8
2019	2020	2021	2022	2023

Quartely

15.9%	15.2%	15.8%	17.9%	17.7%
22.0			23.7	24.0
20.2	20.5		+9%
4Q22	1Q23	2Q23	3Q23	4Q23
				9

Financial solidity to support a new cycle of expansion

Operational Cash Generation (R$ million, X)

Average +84% EBITDA conversion to cash ratio leading to a sumptuous operational cash generation, allowing.....

		+1,8X	152.2
	125.9	116.1	131.6
88.2

2019

2020

2021

2022

2023

CAPEX (R$ million)
	....tech investments
		increase...
		63.5	61.8
50.7	51.7	56.9

2019

2020

2021

2022

2023

Net Cash Position(R$ million)

...Still, CSU is hoarding cash, which puts us in a

great position to capture growth opportunities...

		+65.1	70.1	68.7
	38.1	52.4
3.6
4Q19	4Q20	4Q21	4Q22	4Q23

2

3
1				Payout
Net Debt and Net	Earnings Distribution (R$ million, %)
			Dividends¹
debt/EBITDA (R$ million, X)
					IOC

....onerous debt paydowns....

89.0

49.0

0.90X

0.40X

20.8

0.00X

-0.04X

0.10X

-0.8

-6.5

4Q19

4Q20

4Q21

4Q22

4Q23

...and larger earnings distribution to shareholders.

	40%	50%	50%	50%¹
39%		36.8
		30.2	17.3
10.6	18.5
			26.9
2019	2020	2021	2022	2023

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¹ Complementary dividends to be approved at the AGM. If approved, will result in a 50% payout against the 2023 profit.