Locaweb Serviços de Internet S A : 4Q23 Earnings Presentation

Results Presentation

4Q23

March 21, 2024

Disclaimer

The statements contained in this document related to business prospects, projections on operating and financial results, and to the growth perspectives of Locaweb Serviços de Internet S.A. are merely projections and, as such, are based exclusively on the expectations of the Board about the future of the business. These expectations depend materially on market conditions, the performance of the Brazilian economy, the sector and international markets and, therefore, are subject to changes without notice. All variations presented here are calculated based on numbers in millions of reais (unless otherwise stated), as well as rounding. This performance report includes accounting and non-accounting data such as operational, organic and pro forma financial data and projections based on the expectations of the Company's Management. The non-accounting data have not been reviewed by the Company's independent auditors

Fernando Cirne

CEO

4Q23 Highlights

Profitability, EBITDA and Cash Generation

Consolidated EBITDA margin with an expansion of 3.7 p.p. vs 4Q22, reaching 19.7% in 4Q23. The Company's highest quarterly margin since the beginning of the acquisition process

Expansion of the EBITDA margin of acquired companies, reaching 10.2% in 4Q23 (+22.1 p.p. since 4Q21 and +13.0 p.p. since 4Q22) due to operational leverage resulting from the strong growth of the majority of acquired companies

Adjusted EBITDA grew 41.5% vs 4Q22 and 26.3% vs 3Q23

Free Cash Flow after Capex of R$ 84.3 mm, 93.8% higher than in 4Q22

Growth

Net Revenue Growth of 14.8% vs 4Q22. In 2023, growth was 13.9% vs 2022

Commerce grew 18.2% vs 4Q22 (R$ 243.4 mm in Net Revenue). In 2023 the growth was 21,8%

3

LWSA evolution

Pre-IPO	Post IPO	Until 2023	Going Forward
BeOnline / SaaS used to	Commerce segment expansion	Commerce ECOSYSTEM	Increase profitability
represent 80% of the group	(70% of revenues)	reached ~20% share in Brazilian
		GMV
Lower growth with higher	M&A strategy and Commerce	Focus on M&A integration	Increase the growth pace
margins	ecosystem enhancement	Increased profitability through
		operational leverage
First steps in the Commerce	Higher growth with lower	Simplification of corporate	Monetization of investments
segment	margins	structure	already made in the
			ecosystem

(Net Revenues and Adj. EBITDA Margin)

	1.400,0						1,292.8	35,0%
	1.200,0					1,135.4		30,0%
	1.000,0		28.7%		800.2			25,0%
			26.5%
		25.1%
	800,0						20,0%
	600,0			488.2	17.9%		17.5%	15,0%
			385.7
		315.0		14.9%
	400,0					10,0%
	200,0							5,0%
4	0,0							0,0%
	2018	2019	2020	2021	2022	2023

Financial

Services

Ecosystem of

Digital

Solutions

Logistics

Core Journey

r	Commerce
SMBs and
C
o	Enterprise
s
s
J
o
u
r
n
e
y

ERP

BeOnline

5

Growth Avenues

1

TAM Expansion

(Wake)

Product

Readiness

Impact on	2H24
results

2

Pricing

Growing in 24

3

Cross-selling

Growing in 24

4

Financial Services

2H24

5

Inorganic

Growth

Only if it has size + price + profitability

Ongoing AI investments with potential to improve every part of our ecosystem

6

6

Revenue of Commerce segment

Commerce Revenue

R$ mm

+18.2%

243.4

205.9

139.4

121.0

84.9104.0

4Q224Q23

Platform Subscription Revenue		Ecosystem Revenue

• Platform Subscription Revenue (+22.5%)
• Ecosystem Revenue (+15.2%)

7

Ecosystem GMV and Commerce Subscriber Base

Ecosystem GMV

R$ bi

+17.9%

16.8

14.3

4Q224Q23

+12.1% QoQ

8

Commerce Subscriber Base

In thousands

+13.7%

184.3

162.0

4Q224Q23

Total customer volume of the Commerce operation during the 4Q was 470 thousand

unique customers

Own Stores GMV and TPV

Own Stores GMV

R$ bi

+22.7%

1.5

1.2

4Q224Q23

QoQ: +17.2% vs 3Q23

9

TPV

R$ bi

+20.7%

1.8

1.5

4Q224Q23

QoQ: +6.6% vs 3Q23

9