PagSeguro Digital : 1Q20 Webcast Presentation

First Quarter 2020

WEBCAST PRESENTATION

May 28, 2020

DISCLAIMER

This presentation, prepared by PagSeguro Digital Ltd (the "Company"), is solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the company or any subsidiary or affiliate of the company, nor should it or any part of it form the basis of, or be relied on in connection with any contract to purchase or subscribe for any securities of the company or any of its subsidiaries or affiliates nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

This presentation may contain forward-looking statements relating to matters such as continued growth prospects for the company, industry trends and product and technology initiatives.

These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of currently available information, you are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those included in this presentation, for a variety of reasons, including those described in the forward-looking statements and risk factor sections of our Annual Report on Form 20-F (File No. 001-38353) and other filings with the Securities and Exchange Commission (the "SEC"), which are available on our investor relations website (http://investors.pagseguro.com) and on the SEC's website (https://www.sec.gov).

All of the information included in this presentation is updated as of March 31, 2020. Except as may be required by applicable law, we assume no obligation to publicly update or revise our statements.

Non-GAAP Financial Measures

This presentation includes the following financial measures defined as "non-GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP total net revenue, non- GAAP net take rate, non-GAAP total costs and expenses, non-GAAP administrative expenses and non-GAAP net margin. We present non-GAAP measures when we believe that the additional information is useful and meaningful to investors. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and its prospects for the future. Specifically, we believe the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, as the case may be, that may not be indicative of our core operating results and business outlook.

For an explanation of the foregoing non-GAAP measures, please see "Supplemental Information" included in this presentation. These measures may be different from non- GAAP financial measures used by other companies. The presentation of this non-GAAP financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with IFRS. These measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see "Supplemental Information."

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1Q20 LISTED PAYMENTS COMPANIES PERFORMANCE

PAGS is the most resilient company among listed peers

PAGS 1Q20 QOQ REVENUE1 PERFORMANCE	PAGS 1Q20 YOY NET INCOME PERFORMANCE
VS LISTED PEERS	VS LISTED PEERS

1%
		-5%
	-8%
PAGS	Player 1	Player 2

13%
	-13%
		-65%
PAGS	Player 1	Player 2

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1. Revenue: Total Revenue and Income.

1Q20 HIGHLIGHTS

ACCELERATED TOP LINE AND EARNINGS GROWTH

PAGSEGURO		PAGBANK		RESULTS

TOTAL REVENUE AND INCOME

R$ 1.6B +27% YoY

TOTAL PAYMENT VOLUME

R$ 31.7B +30% YoY

ACTIVE MERCHANTS1

5.5M +24% YoY

NON-ACQUIRING TPV2

Digital Account and Wallet

R$ 8.7B +190% YoY

PAGBANK ACTIVE USERS3

3.7M +234% YoY

NET ADDITIONS

PagBank Active Users

1.0M QoQ

NET TAKE RATE4
3.31%	+19bps YoY
OPERATING REVENUE AND INCOME5
R$ 1.5B	+33%. YoY
NON-GAAP NET INCOME6
R$ 367M	+13% YoY

1.	Active Merchants: At least one transaction in the last twelve months;
2.	Non-AcquiringTPV: Includes prepaid card top-ups, cash cards spending, credit cards, mobile top-ups, wire transfers to different people, cash-in through boletos, bill payments, tax collections, P2P transactions, QR Code transactions, Loans and Super App;
3.	PagBank Active Users: Active merchants using one additional digital account feature/service beyond acquiring and consumers with a balance in their digital account on the last day of the month;
4.	Net Take Rate = (Net Revenue from Transaction Activities and Other Services + Financial Income - Transaction Costs) / Total Payment Volume. Excluding revenues and costs originated in the 1Q20 by membership fees booked in Net Transaction Activities and Other Services (1Q20: R$13.7M) and in Transaction Costs (1Q20: R$88.3M);	4
5.	Operating Revenue and Income = Net Revenue from Transaction Activities and Other Services + Financial Income. We exclude revenues and costs originated in the 1Q20 by membership fees booked in Net Transaction Activities and Other Services (1Q20: R$13.7M);
6.	Non-GAAPNet Income is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

REVENUE AND NET INCOME

Strong revenue growth and solid bottom-line

YOY TOTAL REVENUE AND INCOME			QOQ TOTAL REVENUE AND INCOME
R$ million			YoY growth
									1%
				27%			1,587	1,587
						1,575
1,251

1Q191Q204Q191Q20

YOY OPERATING REVENUE AND INCOME1		YOY NET INCOME2
R$ million						R$ million
				33%
									13%
			1,515
									367
1,143					325
							10
							16
							310				357
		1Q19				1Q20			1Q19				1Q20
									GAAP			non-GAAP
1. Operating Revenue and Income = Net Revenue from Transaction Activities and Other Services + Financial Income. We exclude revenues and costs originated in the 1Q20 by membership fees booked in Net Transaction Activities and Other Services (1Q20: R$13.7M);	5
2. Non-GAAPNet Income is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

OPERATING FIGURES

Outpacing planned TPV and net adds before COVID-19

TOTAL PAYMENT VOLUME								YOY TOTAL PAYMENT VOLUME
R$ billion													YoY growth
																		41%
						30%						37%	39%
						34,271		31,657
24,413
																		14%
		1Q19				4Q19		1Q20						Jan-20	Feb-20	1H Mar-20		Mar-20
NET TAKE RATE1										ACTIVE MERCHANTS2
3.12%	3.23%	3.17%	2.97%	3.31%
1.76%	1.86%	1.83%	1.65%	1.78%								227
																		1,077
2.92%	2.99%	2.93%	2.85%	3.01%							5,269			5,496
-1.56%	-1.62%	-1.59%	-1.53%	-1.48%	4,419
		1Q19		2Q19	3Q19	4Q19	1Q20
				Financial Income
				Transaction Activities and Other Services						1Q19			4Q19		1Q20
				Transaction Costs
1. Net Take Rate = (Net Revenue from Transaction Activities and Other Services + Financial Income - Transaction Costs) / Total Payment Volume. Excluding revenues and costs originated in the 3Q19, 4Q19 and 1Q20 by membership fees booked in Net Transaction Activities and Other Services (1Q20: R$13.7M, 4Q19: -R$9.0M; 3Q19: R$16.9M) in
Transaction Costs (1Q20: R$88.3, 4Q19: -R$8.3M), we would reach a net take rate of 3.02% in 4Q19. However, we also began to defer the membership fee revenues instead of recognizing them upfront in our Income Statement. Therefore, equalizing this adjusted effect in Net Transaction Activities and Other Services Revenue of -R$0,8M in 3Q19 and	6
-R$7,2M in 4Q19, we have reached a comparable take rate of 2.97%;

2. Active Merchants: At least one transaction in the last twelve months.

LIQUIDITY, COSTS AND EXPENSES

Solid balance sheet and relevant variable cost structure

BALANCE SHEET | R$ billion

				6.8		8.1
					3.5
4.4	2.4
2.5	8.8		9.3
4.9
			(3.0)	(4.4)		(4.7)
			1Q18	1Q19		1Q20
		Cash Position at the end of the Period1		Account Receivables
		Payables to Third Parties
TOTAL COSTS AND EXPENSES2 | % of TPV
				3.4%			4.3%
				3.4%
						4.1%
3.3%
3.2%						3.4%
									3.4%
			1Q19	1Q20		4Q19	1Q20

CASH POSITION1 | R$ billion

3.5

2.4

1Q19

1Q20

Cash Position at the end of the Period

ADMINISTRATIVE EXPENSES3 | % of TPV

0.4%
0.3%	0.3%	0.3%	0.3%
	0.2%	0.2%	0.2%
1Q19	1Q20	4Q19	1Q20

GAAP

non-GAAP

GAAP

non-GAAP

GAAP

non-GAAP

GAAP

non-GAAP

1.

Cash Position at the end of the Period = Cash and Cash Equivalents + Financial Investments;

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2.

Non-GAAPTotal Costs and Expenses is a non-GAAP financial measure Excludes stock-based compensation expenses (1Q20: R$15.3M, 1Q19: R$23.8M). Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure;

3.

Non-GAAPAdministrative Expenses is a non-GAAP financial measure Excludes administrative stock-based compensation expenses (1Q20: R$15.3M, 1Q19: R$23.8M) to make results comparable Please see the Supplemental Information for a reconciliation of this non GAAP financial measure to the most directly comparable GAAP financial measure.

PAGSEGURO PAGBANK: ONLINE DISTRIBUTION

Attracting and engaging merchants and consumers backed by UOL

GOOGLE SEARCHES SHARE1

by digital banks

58.9% 67.5% 72.1%

Jan-20Feb-20Mar-20 PagBank Nubank Banco Inter Others

On average, 53%	PagBank app
of our clients	is opened
use at least	11x a week2
3 products from	by our active
our ecosystem	clients.

1. Search criteria: Filtered by Financial Services > Checking Accounts;
2. Source:AppAnie - Last 90 days;

3.. Date: May 9, 2020;

4. Source: Comscore Mar-20.

APPS RATINGS3

Rating Reviews Rating Reviews

4.8	375k	4.5	576k
4.8	158k	4.5	297k

4.777k 4.3132k

4.318k 4.5358k

UOL FIGURES

1.8	UOL web
	accesses in
billion	properties4

113 uniquemonthly

million users4

internet

94% audience in Brazil4

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PAGBANK

Diversifying our business

ECOSYSTEM

STATUS

Digital Account / Wallet

FINANCIAL

SERVICES

DIGITAL

DISRUPTION

Non-Acquiring	Non-Acquiring
TPV1	TPV1
1Q20 | R$ billion	1Q20 | YoY growth
8.7	190%
Bill	Payroll
Payments	Portability
# of transactions | QoQ growth	# of transactions | QoQ growth
25%	37%
QR Code	TPV
Link of Payment
# of transactions | QoQ growth
	YoY
>30%	53%

PAGS CAPITAL

Credit Portfolio	Total Contracts
	Oct'18 to Mar'20

R$ 338 150

millionthousand

CREDIT CARD PORTFOLIO

R$ 156 million

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1. Non-AcquiringTPV: Includes prepaid card top-ups, cash cards spending, credit cards, mobile top-ups, wire transfers to different people, cash-in through boletos, bill payments, tax collections, P2P transactions, QR Code transactions, Loans and Super App.

PAGSEGURO PAGBANK: PRODUCT DEVELOPMENT

Accelerated pace of new products

May-18	Jun-18	Jul-18	Sep-18	Oct-18	Nov-18	Dec-18

Bill Payments	Moderninha Plus	QR Code Payments	Boleto Charge	Moderninha Smart	New Merchant Panel	Multi-storeReports
		Management of pending orders
	Mobile Top Up	P2P Payments	Inventory Management		Tilix Acquisition
	New Sales App for iOS			PAGS Capital
Mar-19	Apr-19	May-19	Aug-19	Sep-19	Nov-19	Dec-19

Sales App 2.0 Net POS	Instant Payments	Credit Card	Minizinha Chip 2	Super App	Moderninha Pro 2	NCR Partnership
	NetPOS Acquisition	Cash Card	Yamí Acquisition	Moderninha X
		App Onboarding		Conta Rendeira
		Payroll Portability		(Savings Account)
Jan-20	Feb-20	Mar-20	Apr-20	May-20	Jun-20
					Loading…
Automobile Tax payments	PedeFácil	PAG Health	Partnership with Drugstores	Services, Offers and
	Certificate of Deposit (CD)	Shell	PagproPequeno	Discounts Map
		Cabify	Virtual Credit Card	(Radar de Ofertas)
			Bolsa Merenda | MG	New CDs		10
				(110% to 120% over CDI)

NEW PRODUCTS AND SERVICES

Creating a best-in-class ecosystem to promote financial and digital inclusion

DRUGSTORES AND SHELL PARTNERSHIPS

• PAGS has established an agreement with drugstores/retail pharmacies and Shell gas stations
• Cash back for PagBank users on the first five purchases above 50 reais
• Fostering the adoption of PagBank cards, diversifying the cash-inmethods

PAGPERTO

• Virtual shopping to support merchants and individual entrepreneurs
• Digital Product catalog and shopping vouchers (ie: buy 1 now, get 2 later)
• Find buyers through geolocation in their neighborhood for online shopping

"BOLSA MERENDA" STATE OF MG

• New partnership with the Government of the State of Minas Gerais
• PagBank has been supporting the government to distribute, through our digital account, emergency benefits to 270k families and 380k students in a situation of social isolation

CORONA VOUCHER | CASH BACK

• Brazilian government is paying 600 reais to the most vulnerable population
• Citizens can withdraw money or select other banks to have their vouchers deposited
• PagBank was the 8th bank in the ranking in terms of deposits received

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PAGBANK HEALTH

Healthcare assistance subscription model with third-party partnerships

Monthly

Subscription

one subscription valid for up to 4 family members

R$ 9.90 to R$ 14.90

MEDICAL AND DENTAL APPOINTMENT

Fixed prices for several medical and dental specialties in all regions, including telemedicine

MEDICAL EXAMS

Up to 70% discounts in health clinics (Fleury A+, Delboni, Lavosier, etc)

DRUGSTORE PARTNERSHIPS

20% minimum discounts on medicines in licensed drugstores

LOTTERY TICKETS Subscribers are automatically entered into the Federal Lottery

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PAGPROPEQUENO.COM.BR

Faster digital adoption for our merchants

LINK OF PAYMENTS	PEDEFÁCIL
www.pagseguro.com.br/linkdepagamento	www.pedefacil.com
• Card-less transaction	• Online food delivery app
• Via e-mail, SMS or social media	• Omni channel for food and
• 1.8M transactions in Jan - Apr-20	diversified delivery services
• +78% YoY in Apr-20	• Payments + software + online
	menu + online ordering

ENVIO FÁCIL	QR CODE
pagseguro.uol.com.br/para-seu-
negocio/online/envio-facil
• Partnership with PAGS and Post	•	Contactless transactions
•	0% MDR
Office
• 10% cash back to customers
• Promotional prices for merchants
•	Fostering electronic payments

• Less bureaucracy and faster deliveries

WIRE TRANSFERS

• Unlimited transactions for PagBank users

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MANAGEMENT PERSPECTIVES

• PAGS 2Q20 net income margin levels similar to 1Q20 due to scalable platform and highly variable costs structure
• 5.5 million active merchants and 3.7 million PagBank active users: we continue to lead the financial inclusion and electronic payments adoption through the crisis
• Our employees are our number one priority. Almost 100% of our workforce is currently working from home
• Withdrawing FY 2020 soft guidance (absolute TPV growth, take rate and net margin) given the lack of visibility into the near-term economic effects of COVID-19
• The outbreak of COVID-19is accelerating shift from cash to electronic transactions
• Community matters to us: (i) donating thousands of masks to public hospitals, (ii) donating more than 200 thousand food baskets, (iii) promoting online concerts with donations of cash, food and health items to UNICEF Brasil, (iv) merchants and community initiatives reached more than R$30 million

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PAGSEGURO PAGBANK: COVID-19 IMPLICATIONS

Healthy trends in TPV leading to 86% pre-COVID-19 levels in May

TPV

YoY growth per month

TPV EXCLUDING NATIONAL HOLIDAYS

YoY growth per month

18%

11%

2%

ACTIVE MERCHANTS

Net Adds1	Active Merchants
Apr + May	May 23, 2020
167K	~5.7M

-3%

Apr-20		May-20		Apr-20		May-20

TPV EVOLUTION

Indexed to 100 in 1H Mar-20

100

86

666874

1H Mar-20	2H Mar-20	1H Apr-20	2H Apr-20	1H May-201
1. As of May 23, 2020.

PAGBANK ACTIVE USERS

Net Adds1	Active Users
Apr + May	May 23, 2020
826K	~4.6M

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First Quarter 2020

SUPPLEMENTAL INFORMATION

1Q20 RESULTS

Reconciliation of GAAP measures to Non-GAAP measures

R$ millions	1Q20	1Q19
Net Income	356.9	309.7
Share-basedlong-term incentive plan (LTIP)1	15.3	23.8
Income Tax on non-GAAP adjustments2	(5.2)	(8.1)
Total non-GAAP Net Income adjustments	10.1	15.7
Net Income non-GAAP	367.0	325.5

1. Share-based long-termincentive plan (LTIP): Stock-based compensation expenses and related employer payroll taxes. This consists of expenses for equity awards under our long-term incentive plan (LTIP). We exclude stock-based compensation expenses from our non-GAAP measures primarily because they are non-cash expenses
and the related employer payroll taxes depend on our stock price and the timing and size of exercises and vesting of equity awards, over which management has limited to no control, and as such management does not believe these expenses correlate to the operation of our business. In the three months ended March 31, 2020 and 2019, the	17
amounts of R$15.3M and R$23.8M, respectively, were mainly related to new shares issued to preexisting LTIP beneficiaries and to new employees participating in our LTIP, as well as the recurrent quarterly provision;

2. Income tax and social contribution on non-GAAPadjustments: In the three months ended March 31, 2020 and 2019, the amounts of R$10.1M and R$15.7M, respectively, consists of income tax at the rate of 34% calculated on the non-GAAP adjustments.

INVESTOR RELATIONS

PagSeguro Digital Ltd.

https://investors.pagseguro.com/

[e-mail]

[phone]