PagSeguro Digital : Scotiabank LatAm Innovation & Disruption Conference

LatAm Innovation & Disruption Conference

Scotiabank

March 30, 2022

Main messages

PagBank PagSeguro

1. Profitability remained resilient with unbeatable underlying fundamentals, despite a tough 2021

2. PagSeguro captured 45% of Payment's profit pool, although investing R$0.3B in PagBank in 2021

3. Ongoing repricing, take rates up at least +15bps in 1Q22 vs. 4Q21 with price increase fully implemented in Apr-22

4. Complete banking for merchants and consumers to address the banking profit pool (30x larger than Payments)

5. Positive outlook for 2022, growing volumes and keeping profitability while we pave the road for PagBank monetization

Net Income R$ 1.8B (excluding PagBank's investments)

Resilient profitability; moving towards a huge banking profit opportunity (+30x Payments' opportunity)

Net Income

R$ Billion | Recurring

PagSeguroPagBank

Total Revenue and Income

R$ Billion | Recurring

PagSeguroPagBank

10.4

2020

2017

TPV Market

Share

2.8%

1. Excluding PagBank revenues.

2017

2018

2019

2021

PagBank TAM

2021 Net Income GAAP

2018

4.9%

6.2%

8.0%

9.5%

R$120B

Banking Profit Opportunity

(TOP15 Banks)

2019

2020

+30x

Payments Opportunity

2021

PagSeguro reached 45% of the industry's profits in 2021

Considering Brazilian Payments Industry: PAGS, Cielo Brasil, Rede, Getnet and Stone

PAGS' Market Share 45%

PAGS Rede Cielo Brasil Getnet Stone Total

837 21%

688 17%

481 12%

203 5%

4,028 100%

2017

2019

2021

TPV Market Share

Revenue share

Payments Net Income Share

PagBank: Revenue growth of +63% y/y in 2021

Net Interest Income grew 142% y/y; Gross Profit grew 20% y/y

Total Revenue

R$ Million | y/y growth

Net Interest Income

R$ Million | y/y growth

Gross Profit

R$ Million | y/y growth

2020

395

163

498

416

2021

2020

2021

2020

2021

PagBank TPV

R$ Billion | y/y growth

Net Take Rate

% of Monetizable TPV

2020

1.44%

1.36%

2021

2020

2021