StoneCo : Q1 2021 Earnings Presentation

1Q21 EARNINGS PRESENTATION

JUN 2021

Disclaimer

This presentation and the information contained herein does not constitute an offer for sale or solicitation of an offer to buy any securities of the issuer.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular, statements about StoneCo Ltd.'s (the "Company") plans, strategies and prospects and estimates of industry growth or prospects. These statements identify prospective information and may include words such as "believe," "may," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "forecast," "plan," "predict," "project," "potential," "aspiration," "objectives," "should," "purpose," "belief," and similar, or variations of, or the negative of such words and expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact contained in this presentation may be forward-looking statements. The Company has based these forward-looking statements on its estimates and assumptions of its financial results and its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs as of the date of this presentation. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the Company's control and may pose a risk to the Company's operating and financial condition. In addition, the Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for the Company's management to predict all risks, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that the Company may make. Accordingly, you should not rely upon forward-looking statements as predictions of future events.

Risks that contribute to the uncertain nature of the forward-looking statements include, among others, risks associated with the Company's ability to anticipate market needs and develop and deliver new and enhanced products and services functionalities to address the rapidly evolving market for payments and point-of-sale, financial technology, and marketing services; the Company's ability to differentiate itself from its competition by delivering a superior customer experience and through its network of hyper-local sales and services, the Company's ability to expand its product portfolio and market reach and deal with the substantial and increasingly intense competition in its industry; the Company's ability to retain existing clients, attract new clients, and increase sales to all clients; changes to the rules and practices of payment card networks and acquiring processors; the Company's ability to obtain debt and equity financings; possible fluctuations in the Company's results of operation and operating metrics; the effect of management changes and business initiatives; and other known and unknown risks, all of which are difficult to predict and many of which are beyond the Company's control. The Company has provided additional information in its reports on file with the Securities and Exchange Commission concerning factors that could cause actual results to differ materially from those contained in this presentation and encourages you to review these factors. The statements contained in this presentation are based on the Company's current beliefs and expectations and speak only as of the date of this presentation. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except to the extent required by law.

To supplement the financial measures presented in this press release and related conference call, presentation, or webcast in accordance with IFRS, Stone also presents the following non-IFRS measures of financial performance: Adjusted Net Income, Adjusted Net Cash Provided by / (Used in) Operating Activities, Adjusted Free Cash Flow and Adjusted Net Cash. A "non-IFRS financial measure" refers to a numerical measure of Stone's historical or future financial performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS in Stone's financial statements. Stone provides certain non-IFRS measures as additional information relating to its operating results as a complement to results provided in accordance with IFRS. The non-IFRS financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with IFRS. There are significant limitations associated with the use of non-IFRS financial measures. Further, these measures may differ from the non-IFRS information, even where similarly titled, used by other companies and therefore should not be used to compare Stone's performance to that of other companies. Stone has presented Adjusted Net Income to eliminate the effect of items from Net Income that it does not consider indicative of its continuing business performance within the period presented. Stone defines Adjusted Net Income as Net Income (Loss) for the Period, adjusted for (1) non-cash expenses related to the grant of share-based compensation and the fair value (mark-to-market) adjustment for share-based compensation classified as a liability, (2) amortization of intangibles related to acquisitions, (3) one-time impairment charges, (4) unusual income and expenses and (5) tax expense relating to the foregoing adjustments. Stone has presented Adjusted Free Cash Flow metric, which has limitations as it omits certain components of the overall Cash Flow Statement and does not represent the residual cash flow available for discretionary expenditures. For example, this metric does not incorporate the portion of payments representing principal reductions of debt or cash payments for business acquisitions. Therefore, we believe it is important to view Free Cash Flows measures only as a complement to our entire consolidated Statements of Cash Flows. Stone has presented Adjusted Net Cash metric in order to adjust its Net Cash / (Debt) by the balances of Accounts Receivable from Card Issuers and Accounts Payable to Clients, since these lines vary according to the Company's funding source together with the lines of (i) Cash and Cash Equivalents, (ii) Short-term Investments, and (iii) Debt balances, due to the nature of Stone's business and prepayment operation.

As certain of these measures are estimates of, or objectives targeting, future financial performance ("Estimates"), they are unable to be reconciled to their most directly comparable financial measures calculated in accordance with IFRS. There can be no assurance that the Estimates or the underlying assumptions will be realized, and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by the Company, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that the Company will achieve or is likely to achieve any particular results.

Certain market and/or industry data used in this presentation were obtained from internal estimates and studies, where appropriate, as well as from market research and publicly available information. Such information may include data obtained from sources believed to be reliable. However, the Company disclaims the accuracy and completeness of such information, which is not guaranteed. Internal estimates and studies, which the Company believes to be reliable, have not been independently verified. The Company cannot assure recipients of this presentation that such data is accurate or complete.

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.

Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. This presentation has been prepared solely for informational purposes. Neither the information contained in this presentation, nor any further information made available by the Company or any of its affiliates or employees, directors, representatives, officers, agents or advisers in connection with this presentation will form the basis of or be construed as a contract or any other legal obligation.

2

Covid-19 Impact: Second Wave and Recovery

Based on client data and international experience, once restrictions ease, comeback is fast

Strong headwinds in 1Q21, signs of recovery in 2Q21

Google Mobility Report 2020-21, Brazil - Rolling Avg 7 days1 (Index: Median of 3-Jan to 6-Feb of 2020 = 0)

-0.3

2Q21

-19.6

COVID-19

1st wave

-47.6

COVID-19

2nd wave

-68.9

Feb-20

Mar-20

Apr-20May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21Mar-21

Apr-21

Stone SMB volumes		International Experience indicates that
showing a bounce-back		vaccines can drive economic recovery
Stone SMB Avg TPV per Client - Rolling Avg 7 days		UK spending on credit and debit card- Rolling Avg 7 days2
(Indexed to 100 in 15-Jan-21)		(Index: February 2020=100)

	Mother´s	110
	Day
				52%
1Q21	2Q21	100	45%	101.35
	111%
	Easing of	90	87.75
100%	restrictions
			27%
		80
	Easter
	81%	70	72.53
			67.67
	Lockdown in Sao Paulo
	49 days in total;		4%
	83% of Mar-21	60
			TPV

		% of population that received at least one vaccine dose
1)	Mobility trends for places like restaurants, cafes, shopping centers, theme parks, museums, libraries, and movie theaters.	3
2)	Data from Bank of England. Project 'UK spending on credit and debit cards' experimental data series

Making Informed Decision to Increase Investments in Growth

Ramping Up Distribution Capacity

Increasing Investments in Technology

Expanding the Client Service Operation

+ 33%

Marketing Investments 1Q21 q/q

+ 20%	+ 32%
Customer Service and Logistics
Technology Headcount in 1Q21 q/q
Headcount in 1Q21 q/q

+ 24%

Salesforce Headcount 1Q21 q/q

We are frontloading investments to be ready to grow faster

when Brazilian economy comes back to normal levels

4

Our Core Business Remains Solid - Strong SMB1 Client Base Growth

Active Clients - Payments ('000)2			Quarterly Net Adds - Payments ('000)2
						857.8							138.0
+36%						+67%
670.3
492.0						514.7					76.6
							62.4					53.0
							50.9
	8.2x	190.3
	23.2						2.3
SMBs (Stone and Pagar.me)3			Micro (TON)	SMBs + Micro		SMBs (Stone and Pagar.me)		Micro (TON)	SMBs + Micro
			1Q20		1Q21					1Q20		1Q21

Digital Banking Accounts / ABC Platform ('000)4

			658
		5.4x	188.4k
			Accounts as
5.6x	237		merchant's
	122	main
		settlement
	42
		account

Active Accounts		Open Accounts
		1Q20		1Q21

Credit Active Clients ('000)

	102.3
	3.3x
30.9
1Q20	1Q21

% of Active Clients with Prepayments2

	67%
62%
1Q20	1Q21

1. Considers SMBs clients (Stone + Pagar.me) + micro merchants (TON), excludes mid/large fintech-as-a-service clients.
2. SMBs + Micro total clients excluding client overlap. Stone and Pagar.me "Active Clients" are merchants that have completed at least one electronic payment transaction within the preceding 90 days. TON active clients have transacted at least once in the preceding 12 months. 5
3. From 1Q21 onwards we are including in our payment's client base the clients of Pagar.me PSP solution, which we did not include prior to 1Q21. For comparison purposes, we show our 1Q20 client base also including that effect. Pagar.me PSP solution contributed to 5.7k clients in 1Q20 and 10.6k in 1Q21.
4. It does not include clients from Pagar.me and TON.