PagSeguro Digital : 3Q23 Webcast Presentation

Webcast Presentation

3Q23

Nov 16, 2023

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 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 most recent 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.pagbank.com) and on the SEC's website (https://www.sec.gov).

All the information included in this presentation is updated as of September 30, 2023. 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 Costs and Expenses, non-GAAP Administrative Expenses, non-GAAP Net Margin and Adjusted EBITDA. 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 our 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 "Appendix" 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. 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 "Appendix".

2

3Q23 Highlights

Quality growth driving higher margins

• Net Income (Non-GAAP):R$ 440M, +7% y/y
• Adj. EBITDA: R$ 894M, the highest margin¹ since 3Q21 (+310bps vs. 3Q22)
• Total Revenue and Income: R$ 4.0B, flattish y/y (+5% q/q)

Disciplined capital allocation driving cash earnings momentum

• Net Cash Balance: R$10.6B, +17% y/y
• Cash Earnings2: R$365M, +36% y/y
• Capital Expenditures: R$529M, +5% y/y

Financial Services: Improving profitability despite ITC cap

• Adj. EBITDA: R$2M (R$64M better vs. 3Q22)
• PagBank Cash-in3:R$56.3B, +34% y/y
• Total Deposits: R$21.6B, +11% y/y

Payments: Double-digit TPV growth, led by all segments

• Adj. EBITDA: R$ 892M, +7% y/y
• TPV: R$99.8B, +11% y/y
• MSMB TPV: +15% y/y

1.	Adj. EBITDA Margin: 22.2% on 3Q23;
2.	Cash Earnings: Adj. EBITDA - CapEx;	3
3.	PagBank Cash-in: PIX P2P and wire transfers sent to PagBank from other financial institutions;

2023 Tech Milestones and Product Launches

Technology	Payments		Financial Services

First transaction	Tap on Phone	Payroll Solution
executed by PagBank and	embedded on	up to 2,000 employees
other financial institution	PagVendas ERP App

Payment Link	Collection Platform	Direct Deposits
facial authentication	PIX QR Code and Boleto	into PagBank account
system	fully-embedded	from other acquirers

4

Payments: TPV growth acceleration driven by all merchants' segments

Total Payment Volume	MSMB TPV
R$ Billion	Ex-Large Accounts

+9.5B

+11% y/y

99.8

90.3 92.7

3Q22

2Q23

3Q23

+15%

3Q22

2Q23

3Q23

3Q23 TPV growth by segment

y/y growth

18%	SMB have the highest TPV share,
followed by Large Accounts

		and Longtail
	9%
		3%
SMB	Longtail	Large
		Accounts

5

Payments: TPV per merchant +22% y/y and Active Merchants1 up +1% y/y

TPV per Quarter per Merchant2	Active Merchants 12M
R$ Thousand	# Million

	+22%				-9%
	14.9	7.3	6.8	6.7
	13.5
12.2
			3Q22	2Q23	3Q23

Active Merchants breakdown

Indexed to 100

Nano-merchants

have the lowest TPV share,

100

accounting for ~1.5%

101

95

91

3Q22

2Q23

3Q23

3Q22

4Q22

1Q23

2Q23

3Q23

30D ex-nano-merchants3

30D

12M

1.	Active Merchants with at least one transaction done in the past 30 days, excluding nano-merchants (merchants with TPV per month up to R$ 1,000);	6
2.	TPV per Merchant: TPV / Average quarterly Active Merchants;
3.	Nano-merchants: Active Merchants with TPV per merchant from up to R$1K per month.

Financial Services: 30.2M Clients with Cash-in up +34% y/y

PagBank Clients

PagBank Cash-in

# Million

R$ Billion

PIX P2P and wire transfers inflows into PagBank accounts from other financial institutions

		+4.3M					+14.4B
		+16% y/y
						+34% y/y
		29.5	30.2		56.3
25.9
					50.3
						41.9
3Q22	2Q23	3Q23

PagBank Active Clients

# Million

+1.0M

+6% y/y

15.8 16.4 16.7

3Q22

2Q23

3Q23

3Q22

2Q23

3Q23

7

Total Deposits: All time high level, reaching R$21.6B

Total Deposits

R$ Billion

+2.2B

+11% y/y

Checking Accounts Balance

R$ Billion

+2.9B

+43% y/y

APY

72% CDI

9.7

19.4

21.6

18.3

6.7 8.3

3Q222Q233Q23

74%85%

86%

3Q22

2Q23

3Q23

On-PlatformOff-Platform

APY1 on Total Deposits					brAAA2
%
	10.2%	12.4%	13.5%	13.7%	13.7%	13.7%	13.3%
7.6%
94%	94%	97%	99%	96%	94%	94%	93%	Lowest
							APY ever
7.1%	9.6%	12.0%	13.3%	13.2%	12.8%	12.9%	12.4%
4Q21	1Q22	2Q22	3Q22	4Q22	1Q23	2Q23	3Q23
		APY	Avg. CDI	APY | % of CDI

1.	APY: Annual Percentage Yield;	8
2.	Rating brAAA attributed to Banco Seguro S.A. in Aug-23 based on the consolidated financial position of the parent company PagSeguro Digital Ltd.

Credit Portfolio: 60% secured with ongoing downtrend in NPL90+1

Credit Portfolio	Credit Portfolio mix
R$ Billion	% Credit Portfolio

2.7	(0.1)	2.6	(0.1)	2.5

3Q22

WK Run-off

3Q23e

Write-Off2

3Q23

Credit Portfolio breakdown

R$ Billion

2.7 2.6 2.5

31%	42%	48%
38%	34%	33%
31%	24%	19%
3Q22	2Q23	3Q23

35%	52%	60%
			Secured
					Unsecured
3Q22	2Q23	3Q23

NPL90+1

% over Credit Portfolio up to 360 days

23.6%	10.7%

0.4%3Q22	1.1%
3Q23

Payroll Loan + FGTS		Credit Cards		Working Capital		Secured Products	Total Credit Portfolio

1.	NPL90+ is calculated based on Credit Portfolio up to 360 days;	9
2.	Write-offs related to the Working Capital loan and Payroll Loan portfolio. Future write-offs are planned to be done accordingly to our Tax Planning.

All-time high Net Income

3Q23 Financial Highlights

R$ Million

+5% q/q in Total Revenue and Income

+3% q/q in Gross Profit

+5% q/q in Adj. EBITDA (Payments: +5% q/q)

+6% q/q in Net Income (Non-GAAP)

+7% q/q in EPS (GAAP / Non-GAAP)

+14% q/q in Cash Earnings

1. Including Other Financial Income;

2. Total Losses: Chargebacks and Expected Credit Losses;10

3. Adj. EBITDA: EBITDA net of Financial Expenses.