Slides
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PagSeguro Digital Ltd. (NYSE: PAGS) September, 2025 Strategic Update PAGS Long-Term View
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Forward-looking statements and 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 is updated with the available information on the date of this presentation, September 18, 2025. 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: Total Costs and Expenses, Operating Expenses, Earnings before Taxes, Net Income, Earnings before Taxes Margin and Net Income 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 our prospectsfor 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”.
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Strategic positioning
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Strategic Positioning | Innovation DNA Facilitating the financial lives of businesses and individuals To transform and democratize access to financial services and payment solutions in Brazil, by building a comprehensive, secure, and inclusive digital ecosystem for all customers. We have a full banking offering and the largest payments acceptance network in the country, with online solutions for in- person sales, omnichannel and self-service A company born out of innovation and pioneering in Banking and Payment Solutions One Platform One Goal 4
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Strategic Positioning | Innovation DNA 20 years anticipating market trends: from payments innovation to expanding financial inclusion in Brazil 2006 PagSeguro is founded to enable secure online payments for UOL users. 2014 Disrupted payment in Brazil, creating a new business model (sales of POS vs renting) that became industry standard business model PagSeguro: first non- banking acquirer for Visa and Master Card. 2015 Launch of Moderninha (mPOS) and the PagSeguro prepaid card, democratizing access to POS technology for micro and small merchants. 2018 IPO at NYSE. The Largest for a Brazilian fintech: US$2.6 billion 2019 Launch of the PagBank Digital (full Banking- license acquisition) Implementation of Instant settlement in payments Payments Full Digital Banking + Payments 2023 to 2025 Greater than Payments, Greater than Banking: A true growth partner for individuals and business Development of capabilities and processes to underwrite credit to the retail (Long Tail, SMBs and consumers) half of the industry NPL 90 Deposits/Funding of R$ 43 billion in Q2 25 is a result of PAGS’ platform and ecosystem 5
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PAYMENTS BANKING Prepaid TPV Settled into PagBank Accounts Complete set of payment solutions Deposits franchise funds TPV Prepayment Deposits CREDIT Personalized Credit Offer ▪ Customer acquisition through POS device and hardware free payments (online and Tap On), to enable merchants to accept all payment methods (cards, Pix and bank slips) ▪ Revenue generation from transactions and pre-payments ▪ Expansion of addressable market through online and cross- border ▪ Customer acquisition with a complete banking account for individuals and businesses ▪ Customer engagement via digital accounts, cash-in, deposits, cards, investments, etc.. ▪ Monetization through financial services and customer retention ▪ Expansion of Customer lifetime value ▪ Monetization through credit products Strategic Positioning | Business Overview Greater than Payments, Greater than Banking: Your growth partner Complete digital banking offer Simple, Secure and Scalable: unlocking value through an integrated financial ecosystem 6
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1.0 0.0 0.5 1.7 4.0 10.0 15.2 8.2 2.86 4.15 3.92 3.51 4.57 5.10 6.62 3.49 4.50 4.90 6.13 0 5 10 15 20 25 30 2 2018 2019 2020 2021 2022 2023 2024 2025 YTD Number of shares repurchased (M) EPS (diluted, GAAP)(reported)(R$) EPS w/o buyback (diluted, GAAP)(R$) 2Q25 highlights Proven track record EPS: Up ~2.3x, focused on delivering shareholder value Banking license acquisition and launch of PagBank Launch of collateralized credit card offer Largest Brazilian fintech IPO (US$ 2.6B) PIX implementation and initial phases of Open Banking Strengthening our on-line and cross- border positioning Focus on MSMB with sales force expansion Launch of FGTS withdrawal anticipation and payroll loan +15.0% CAGR (2018-2024) Covid-19 Pandemic 7
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Growth Opportunities
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1. Source: Estatuto Nacional da Microempresa e da Empresa de Pequeno Porte. Classification based on annual gross revenue: MEI – up to BRL 81k; ME – up to BRL 360k; EPP – BRL 360k to BRL 4.8M. Data as of December 2024. 2. BACEN – Financial System Client Registry. Considers adults aged 15 and older who have a banking relationship, as of 2022. 3. BACEN. 4. BACEN. Considers all deposits from private financial and payment institutions, except saving deposits. 5. BACEN. Considers total credit of the financial system, as of December 2024. 6. BACEN. Considers payroll loans of private financial institutions, as of December 2024. 6.3 million 17.3 million 6.0 billion R$ 430 billion R$ 48.1 billion R$ 2.9 billion Includes self-employed individuals in the informal economy MEI - Individual-like Merchants ME - Micro Businesses EPP - Small Businesses 19.1M 16.3M 4.5M 0.6M 40.5 million¹ 170 million² 75.4 billion³ R$ 5,822 billion5 R$ 569 billion6 29.8 billion4 15.6% 10.2% 9.4% 1.4% 0.8% 0.5% ACTIVE MERCHANTS ACTIVE BANKING CLIENTS PIX # TRANSACTIONS PIX Volume EXPANDED CREDIT PORTFOLIO PAYROLL LOAN PAGBANK MARKET SHARE R$ 37.2 billion1.0%DEPOSITS 3,823 billion4 Market and Growth opportunities Significant opportunities to drive future growth in a highly concentrated financial market 9
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Market and Growth opportunities Low per capita consumption and under-penetrated credit highlight major growth opportunities in payments and banking Source: World Bank, BIS Low per capita consumption highlights untapped demand and structural growth potential Expanding credit access will fuel consumption and unlock growth opportunities 5,934 45,384 29,326 24,401 Consumption expenditure per capita | Constant 2015 USD (nominal value) Brazil United States United Kingdom Sweden 8,979 123,921 74,341 142,697 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 Total credit per capita | Nominal USD Brazil United States United Kingdom Sweden Credit per capita relative to consumption expenditure in Brazil remains well below levels seen in developed markets, highlighting significant growth potential in payments, banking, and credit 10
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Projection 38 41 42 45 48 64 32 40 51 59 66 8757 62 68 76 85 111 127 143 161 180 200 261 2021 2022 2023 2024 2025 2028 Brazil Mexico Other Latin America Retail e-commerce Latam Sales US$ B Market and Growth opportunities Brazil’s positive payments outlook supports PAGS, driving volume growth and reinforcing its role in the digital financial ecosystem CAGR 24-30Digital Payments TPV R$T, 2021-2030p, nominal values Brazil payment sector is expected to grow ~10%p.a., led by 15% growth in PIX and 8% in card transactions -6.4% 7.6% 15.5% 9.8% Online Payments are a key growth driver, with Latin America ecommerce expected to surpass $ 110B by 2028 Source: CMEP, Bain & Company and eMarketer. • Capturing the e-commerce TPV: Increasing e-commerce directly boosts acquiring volumes • With a strong presence in Brazil, PAGS leverages its infrastructure and brand recognition to capture a larger share of the e-commerce market CAGR 25-28 10.1% 9.3% 9.7% 9.7% Projection 1.6 2.1 2.4 2.8 3.0 4.31.0 1.2 1.3 1.4 1.2 0.9 0.6 1.3 2.1 3.3 4.4 7.9 2021 2022 2023 2024 2025 2030 Pix Debit and prepaid Credit card 8.7 7.5 5.9 4.7 3.3 13.1 • MSMB Leadership: PAGS enhances its relevance to MSMBs by offering integrated solutions • Unlocking Cross-Sell with Pix: Pix's strong expansion increases PAGS cross-sell potential, converting instant transactions into new banking and credit opportunities 11
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Market and Growth opportunities PAGS sets itself apart from neobanks with full-service capabilities and instant settlement Payments Investments Credit Insurance Services POS Tap on Phone Sales conciliation CDB LCI/LCA Stock Investment Funds Government bonds Credit card Payroll loan Working Capital Overdraft Account Life Health Auto Home Financial Protection Mobile Credit and Debit Cards Checking Accounts Advisory Digital Players Instant Settlement 12 Customer centricity, seamless user experience, and scalable credit offerings are our key differentiators. Unlike incumbents, we’re built to distribute our products digitally, adapt quickly and grow in underserved segments where traditional models fall shorter. A B C D E
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13 Capital Optimization
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Capital Optimization Over R$ 5.5 Billion in shareholder returns, of which R$ 3.8 Billion expected between 25/26 BIS Target Level between 18% to 22% 2026 Cash Dividend 4 at least R$ 1.4 Billion Capital Structure target ▪ Ensuring a solid capital base to maintain financial strength ▪ Fuel long-term growth through disciplined capital allocation ▪ Provide flexibility to pursue opportunities, balancing reinvestment and resilience ▪ BIS Target level between 18% to 22%, will drive an excess of capital¹ distribution between R$ 2B to R$ 3B Accelerate dividend payouts to delivery immediate shareholder benefits ▪ R$ 1.4B dividend² to be paid as following: a) R$ 200M in Feb’26, b) R$ 400M in Jun’26, R$ 400M Set’26 and R$ 400M Dec’26, in addition to the R$ 623M already announced/paid in 2025. 284 292 399 784 696 623 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2021 2022 2023 2024 2025 YTD To be Paid Buyback Execution³ and Dividend Payment + 1,400 Expected Total Yield² ~20% Amount Repurchased (R$ Million) Dividend Payout (R$ million) Current Buyback Program up to ~R$ 1.1 Billion 5 14 1.319 + Buyback 1. As of 2Q25 | 2. Includes a cash dividend corresponding to 10% of 2025 net income, as announced in 1Q25. Dividends are subject, among other factors, to market and company financial conditions. Any future declaration of dividends, including, butnot limited to, the dividends mentioned herein, and the amount thereof will be at the discretion of the Company’s board of directors| 3. Over 37 million shares repurchased in the period | 4. Includes future cash dividends and Buyback execution, divided by average share price of R$ 8.37 (Jan 1st to Sep 10th) | 5 – Refers to US$ 200 million program launched May, 25
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15 Long-Term Goals
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Long Term Goals Our long-term goals highlight both our journey and our commitment to a sustained value creation Accelerate Credit ▪ Portfolio expansion maintaining focus on sustainable credit products ▪ Activating higher value clients ▪ AI-powered credit offering, including private payroll and PIX Financing Increase Profitability ▪ Growth driven by higher Banking contribution ▪ Unlock incremental margins through cross-selling and higher efficiency supported by AI customer interface Shareholder Return ▪ Capitalizing on growth opportunities and operational improvements, leading to higher performance CREDIT PORTFOLIO GROSS PROFIT EPS > 10% CAGR 2025 to 2029 > 16% CAGR 2025 to 2029 R$ 25 B Dec’ 2029 16
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Investor Relations Website: https://investors.pagbank.com/ E-mail: ir@pagbank.com Address: Av. Brigadeiro Faria Lima, 1384, 10th floor | São Paulo Zip Code (CEP): 01451-001 Media Press Website: https://xcom.net.br/ E-mail: pagbank@xcom.net.br YouTube Logo PNG, Transparent YouTube Logo Icon Free DOWNLOAD Linkedin - ícones de mídia social grátis