PagSeguro Digital Ltd. Class A Common Shares

Good evening. My name is Algir and I will be your conference operator today. Welcome to Pegasiguru Digital's earnings call for the fourth quarter of 2024. This slide's presentation for today's webcast is available on Pegasiguru Digital's investor relations website at investors.pegbank.com. Please refer to the forelooking statement and reconciliation disclosure in this presentation and in the company's earnings release appendix. Finally, Be advised that all participants will be in listen-only mode. After the presentation, to ask a live question, please use the raise hand button to join the queue. Once you are announced, a request to activate your microphone will appear on your screen. Please ask all your questions at once. Alternatively, you can also write your question directly into the Q&A icon located in the lower right part of your Zoom screen. Today's conference has been recorded and will be available on the company's IR website after the event has been concluded. I would now like to turn the call over to Gustavo Sequin, Head of IR. Please, go ahead, sir.

Hi, everyone. I'm Gustavo Sequin, Head of Investor Relations of PagBank. I would like to welcome and thank you for joining us for our fourth quarter 2024 earnings call. Tonight, I am accompanied by Ricardo Dutra, our Principal Executive Officer, Alexandre Maiani, our CEO, and Arthur Schunk, our CFO. With that, I would like to turn it over to Dutra, who will begin today's presentation. Please, Dutra.

Hello, everyone, and thanks for joining our fourth quarter 2024 earnings call. I begin with slide four, where we present our key operational and financial highlights. PagBank had another year with all-time high performance, combining growth with profitability. we ended the year with 33.2 million clients growing 2.1 million year over year. The financial performance can be summarized as a robust growth in top line, meaning TPV and revenues, and even more accelerated growth in bottom line, meaning net income and earnings per share. As we can see in the highlighted area on the left side of the slide, our payment CPV reached a record of 518 billion reais an impressive 32% growth year-over-year, which will give more color in the next session of our presentation. Our net revenues increased 18% year-over-year, reaching R18.8 billion. Net income was an all-time high, R2.3 billion, a 28% growth compared to 2023, with a diluted EPS on a gap basis reaching R6.62, growing 30% versus previous year, which reinforces our commitment to continuously create shareholder value. On the right side of the slide, our credit portfolio and funding are experiencing rapid year-over-year growth, further solidifying our financial strength and market position. In the solid operation and financial performance delivered, boosted our return on average equity to 15.2%, a 198% basis points increase year-over-year, despite our conservative capital structure. Our current quarter and year performance underscores our ability to create value and deliver robust results. We stand out as one of the very few companies in our segment that has consistently growing and achieving positive results every single quarter since our IPO. This remarkable track record has been maintained despite the changes in industry dynamics and economic cycles. Moving to slide five, we take a quick look on how we are able to deliver steady long-term growth despite a challenging macro environment. If you take a couple of steps back, you'll remember that in the beginning of 2024, market estimates projected a year-end Selic rate around 9% or below with a somewhat stable FX and inflation within the range determined by Brazilian Central Bank. we ended up having Selic more than 300 basis points higher than the base case, on top of changing other assumptions. Still, we were able to deliver our strongest results ever due to initiatives we have deployed throughout the year. Many initiatives were focused on, first, increasing revenues, as we have successfully explored new growth verticals and advanced on repricing our products on banking and acquiring segments. Second, improve shareholder value, and here the highlight is the execution of more than 50% of our current buyback program of $200 million launched in August 2024. And third, on the liability side, our focus on adjust our cost structure, aiming mainly at financial cost efficiency and operation leverage. 2024 is a good and real example for our ability to adapt and perform. Despite micron surges and external headwinds, we were able to outperform our guidance and balance growth and profitability. For 2025, the playbook remains the same as we intend to further explore those initiatives to navigate these next year challenges. Now, I'll hand it over to Alex for the quarter highlights on the business units. Thank you.