2Q19 RESULTS August, 2019
DISCLAIMER Non-GAAP Financial Measures This presentation, prepared by PagSeguro Digital Ltd (the “Company”), is This presentation includes the following financial measures defined as "non- GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP solely for informational purposes. The information in this presentation does not total net revenue, non-GAAP net take rate, non-GAAP total costs and constitute or form part of, and should not be construed as, an offer or invitation expenses, non-GAAP administrative expenses and non-GAAP net margin. We to subscribe for, underwrite or otherwise acquire, any securities of the present non-GAAP measures when we believe that the additional information company or any subsidiary or affiliate of the company, nor should it or any part is useful and meaningful to investors. These non-GAAP measures are of it form the basis of, or be relied on in connection with any contract to provided to enhance investors' overall understanding of our current financial purchase or subscribe for any securities of the company or any of its performance and its prospects for the future. Specifically, we believe the non- subsidiaries or affiliates nor shall it or any part of it form the basis of or be GAAP measures provide useful information to both management and relied on in connection with any contract or commitment whatsoever. 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 This presentation may contain forward-looking statements relating to matters outlook. such as continued growth prospects for the company, industry trends and product and technology initiatives. For an explanation of the foregoing non-GAAP measures, please see “Supplemental Information" included in this presentation. These measures These statements are based on currently available information and our current may be different from non-GAAP financial measures used by other assumptions, expectations and projections about future events. While we companies. The presentation of this non-GAAP financial information, which is believe that our assumptions, expectations and projections are reasonable in not prepared under any comprehensive set of accounting rules or principles, is view of currently available information, you are cautioned not to place undue not intended to be considered in isolation of, or as a substitute for, the reliance on these forward-looking statements. Our actual results may differ financial information prepared and presented in accordance with International materially from those included in this presentation, for a variety of reasons, (“IFRS”) as Financial Reporting Standards issued by the International including those described in the forward-looking statements and risk factor Accounting Standards Board (“IASB”) . Non-GAAP measures have limitations sections of our Annual Report on Form 20F (File No. 001-38353) and other filings with the Securities and Exchange Commission (the “SEC”), which are 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 available on our investor relations website (http://investors.pagseguro.com) and on the SEC’s website (https://www.sec.gov). only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. All of the information included in this presentation is updated as of June 30, For a reconciliation of these non-GAAP financial measures to the most directly 2019. Except as may be required by applicable law, we assume no obligation comparable GAAP measures, see “Supplemental Information." to publicly update or revise our statements. 2
2Q19 RESULTS HIGHLIGHTS Net Net Adjusted Net Income 1 Margin 2 Net Revenues 3 Take Rate 4 SOLID non-GAAP | R$ mn non-GAAP R$ bn n 343 25% 1.3 3.23 % RESULTS +42% YoY +53% YoY +11 bps QoQ Average Total Unique Total Payment Active Active Accounts 5 Volume Merchants Spending OPERATING n R$ bn LTM per merchant | R$ 000 9.4 26.8 4.7 5.9 FIGURES million +59% YoY million +15% YoY App PagBank Total Customer Active Users 6 Average Balance Downloads Logins LTM in 2Q19 in 2Q19 PAGBANK in 2Q19 1.4 58% 2.5 75 million YoY million million 1) Non-GAAP Net 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; 2) Net Margin is calculated by dividing Net Income by Total Revenue and Income. Non-GAAP Net Income Margin is calculated by dividing non-GAAP Net Income by non-GAAP Total Revenue and Income. Non-GAAP Net Income Margin 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; 3 3) Adjusted Net Revenue = Net Revenue from Transaction Activities and Other Services + Financial Income; 4) Net Take Rate = (Net Revenue from Transactional Activities and Other Services + Financial Income - Transaction Costs) / Total Payment Volume (TPV); 5) Total Unique Active Accounts are active merchants, online buyers using PAGS digital wallet and active PagBank consumers with at least one transaction in the last twelve months; 6) Total Active Users of PagBank are active merchants using one additional digital account feature/service beyond acquiring and consumers with at least one transaction in the last twelve months.
PAGBANK EXPANDS OUR MARKET BY 14X S R$336bn 2 BANKING Market R$282bn Credit Services 14x + R$45bn Fees and Cards + R$24bn 1 PAYMENTS R$9bn Software Solutions Market 4 1) PAGS internal estimate for all merchant acquirers´ total revenue for 2019. Source: ABECS and Card schemes; 2) Credit Services: PAGS internal estimate using total non-targeted loans for SMB and individuals in Brazil, multiplied by the average spread of the entire industry; Banking and Cards: PAGS internal estimate for the SMB and individuals using total revenue generated by the Brazilian top 04 banks on checking accounts and card services; Software Solutions: Total addressable market in Brazil for retail management software in 2017. Sources: Brazilian Central Bank (2018) and Goldman Sachs Research.
PAGBANK EXPANDS OUR MARKET BY 14X A BLUE OCEAN OPPORTUNITY – MARKET FIGURES 28 million 57% 68 million (low-Income) do not are interested in unbanked population have a bank account 2 digital banks 3 in Brazil 1 65% 51% 40% of the bill payments new bank accounts of the paychecks are in cash 2 opened to receive payroll 3 are paid with cash 2 5 1) Source: IBGE – 2018; 2) Source: Global Findex – 2017; 3) Source: Qualibest | "Banking and Fintech Insights“– 4Q18.
PAGBANK EXPANDS OUR MARKET BY 14X LEADING THE DIGITAL TRANSFORMATION AND DEMOCRATIZING FINANCIAL SERVICES POPULATION COVERAGE 1 SMARTPHONE PENETRATION 2 71 % 3G COVERAGE 4G COVERAGE 96% 98% GLOBAL INTERNET FIGURES 5 number of th INTERNET USERS 3 87 % 105 BRA IDN USA IND CHN 4 283 minutes th spent daily on mn INTERNET 4 internet unique TWN BRA COL ZAF PHL audience in monthly minutes 2 nd Brazil 5 users 5 spent daily on 214 SOCIAL MEDIA 4 ARG IDN COL BRA PHL 1) Source: Teleco (www.teleco.com.br) | Date: Jun-2019; 6 2) % of the Brazilian population | Source: McKinsey&Company | “Brazil Digital Report – 1 st edition” , Apr-2019; 3) Source: Mary Meeker | “Internet Trends 2019 ”, Jun-2019; 4) Source: Global Web Index (Q2 & Q3 2018); 5) Source: Comscore Media Metrics | Date: Jun-2019.
PAGBANK EXPANDS OUR MARKET BY 14X OUTSTANDING AND ENCOURAGING RESULTS 1.4 in Android and iOS. 4.8 1 st PagSeguro is the PagBank active Best rated app largest digital bank users in Jun’19 among Payments by Google 2 and Digital Banks million 58 % of our users would 94 % 1 increase in the st PagBank is the hire products and digital accounts largest prepaid card services offered average balance issuer in Brazil 3 by Pagbank 1 y-o-y 75 2.5 downloads in the logins in the quarter, growing PagBank’s app almost 200% YoY in 2Q19 million million 7 1) Source: According to internal research; 2) Source: Google trends filtered by Financials LTM; 3) Source: Card Monitor in Mar-19.
PAGS CAPITAL SCALING UP LENDING TO OUR BEST ACTIVE MERCHANTS 132 Credit Portfolio million R$ 26 Total Contracts Thousand May‘18 to Jun‘19 14x # OF CONTRACTS 8 4Q18 1Q19 2Q19
Recommend
More recommend
