PagSeguro Digital Ltd. Class A Common Shares

Good evening. My name is Vittoria and I will be your conference operator today. Welcome to PagBank PagSeguro's webcast results for the third quarter 2022. At this time, all lines have been placed on mute to prevent any background noise. Should any participant need assistance during the call, please press star zero to reach the operator. This event is also being broadcast live via webcast and may be accessed through PagBank PagSeguro's website at investors.pagseguro.com. Participants may view these slides in any order they wish. Today's conference is being recorded and will be available after the event is concluded. I would now like to turn the call over to your host, Eric Oliveira, Investors Relations and ESG Director. Please go ahead.

Hi, everyone. Thanks for joining our third quarter 2022 earnings call. Today, we have with us Ricardo Dutra, CEO of UOL Group and board member of PagBank PagSeguro, Alexandre Maiani, CEO, and Arthur Schunk, CFO. After the speaker's remarks, there will be a question and answer session. Before proceeding, let me mention that any forward look statements included in the presentation or mentioned on this conference call are based on currently available information and PagBank PagSeguro's current assumptions, expectations, and projections about future events. While PagBank PagSeguro believes that the 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. Actual results may differ materially from those included in PagBank PagSeguro's presentation or discussed on this conference call, for a variety of reasons, including those described in the Forward Looking Statements and Risk Factors sections of PagBank PagSeguro's most recent annual report on Form 20F and other findings with the Securities Exchange Commission, which are available on PagBank PagSeguro Investor Relations website. Finally, I'd like to remind you that during this conference call, the company may discuss some non-GAAP measures, including those disclosed in the presentation. We present non-GAAP measures when we believe that the additional information is useful and meaningful to investors. 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 separately from or as a substitute for our financial information prepared and presented in accordance with IFRS as issued by the IASP. For more details, the foregoing non-GAAP measures and the reconciliation of these non-GAAP financial measures to the most directly comparable IFRS measures are presented in the last page of this webcast presentation and earnings release. With that, let me turn the call over to Ricardo. Thank you.

Hi, everyone. Good evening from São Paulo and thank you, Eric. Going to slide three, I would like to begin our presentation with the main message for Q3 2022. We reported the highest EPS in Pag's history for third quarters, achieving R$1.16, up 20% versus the same period of 2021. PagSeguro TPV reached R$90.3 billion, growing 35% year over year, and one more quarter, outpacing by far the industry growth. Our successful repricing led to a net take rate 24 bps higher than Q1 2022. TAG Bank deposits reached R$19.4 billion, 171% higher than the same period of 2021. TAG Bank Net Ads accounted for 1.1 million new clients, leading to almost 26 million clients, reaffirming PagBank's position as the second largest digital bank in Brazil in number of clients. CapEx to revenue ratio was 12.4%, lower 230 bps when compared to second quarter 2022, and trending down moving forward. Going to slide four, once again, Our successful strategy on democratizing the access of financial services and payment solutions in Brazil resulted in record numbers in all main KPIs this quarter. In payments platform, TPV was R$ 90.3 billion and our revenues reached R$ 3.7 billion, growing faster than TPV and reaching almost 50% growth year-over-year. Monthly TPV per merchant grew 39%, reaching Class A Common Shares Class A Common Shares Class A Common Shares Class A Common Shares Class A Common Shares Due to our cautious approach in credit underwriting given the macro uncertainties. In Q3 2022, 100% of credit underwriting was secured, which helps the company to balance the asset quality at the same time exploring a safe entry point in loan for consumers. Our deposits reached an impressive number of almost 20 billion reais, 171% growth year-over-year. Overall, At the center of the slide, total revenue and income reached R$ 4.04 billion, 45% higher than Q3 2021. Net income on a non-GAAP basis reached R$ 411 million, while the GAAP net income reached R$ 380 million, 18% higher than the same period of 2021, and the highest net income of PAG's history for third quarters. Now, I'll pass the word to Alexandre to share some views about our business units. Thank you.