Pagbank (PAGS) Strategy Update summary

Strategic Positioning and Business Model

• Focuses on democratizing access to financial services and payment solutions in Brazil through a comprehensive digital ecosystem for individuals and businesses.

• Transitioned from a payments company to a full digital bank, offering integrated payments, banking, and credit services for both merchants and retail clients.

• Offers the largest payments acceptance network, POS devices, free digital accounts, card issuance, and full merchant acquiring.

• Monetizes through integrated payments, credit, and banking products, driving customer acquisition and retention.

• Over 33 million customers and a strong reputation as a trusted financial partner.

Market and Growth Opportunities

• Holds 15.6% market share among active merchants and 10.2% among active banking clients, with significant room for expansion.

• Significant growth potential in Brazil's under-penetrated credit market and low banking share.

• Brazil’s payment sector is projected to grow 10% annually, led by 15% growth in PIX and 8% in card transactions.

• E-commerce in Latin America is expected to surpass $110B by 2028, boosting acquiring volumes.

• Confident in ability to gain fair market share in credit despite strong competition.

Capital Optimization and Shareholder Returns

• Basel capital ratio target set between 18%-22% to ensure financial strength and flexibility.

• Plan to return over R$5.5 billion to shareholders by 2026, including R$3.8 billion in distributions between 2025 and 2026.

• Accelerated dividend payout in 2026, with an extraordinary R$1.4 billion dividend planned.

• Stock buybacks include R$696 million executed in 2025 and a current program up to R$1.1 billion.

• Combined with buybacks, total yield could approach 20%.