UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2022
Commission File Number: 001-38353
PagSeguro Digital Ltd.
(Name
of Registrant)
Av. Brigadeiro Faria Lima, 1384, 4º andar, parte A
São Paulo, SP, 01451-001, Brazil
+55 11 3038 8127
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form
40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(7):
Yes ☐ No ☒
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended
March 31, 2022 and 2021
Contents
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Unaudited condensed consolidated interim financial
statements |
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2
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investors.pagseguro.com |
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PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim balance sheet
As of March 31, 2022 and 2021
(All amounts in thousands of reais)
|
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|
Note |
|
March 31, 2022 |
|
December 31, 2021 |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
5 |
|
1,483,092 |
|
|
1,794,362 |
|
|
Financial investments |
6 |
|
1,131,788 |
|
|
782,647 |
|
|
Accounts receivable |
7 |
|
25,528,929 |
|
|
23,428,522 |
|
|
Derivative Financial Instruments |
14 |
|
1,329 |
|
|
— |
|
|
Inventories |
|
|
49,274 |
|
|
49,537 |
|
|
Tax Receivable |
8 |
|
434,384 |
|
|
469,490 |
|
|
Other receivables |
|
|
242,924 |
|
|
194,776 |
|
|
Total current assets |
|
|
28,871,720 |
|
|
26,719,334 |
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Accounts receivable |
7 |
|
390,428 |
|
|
228,880 |
|
|
Judicial deposits |
|
|
41,148 |
|
|
40,224 |
|
|
Deferred income tax and social contribution |
19 |
|
114,309 |
|
|
120,762 |
|
|
Other receivables |
|
|
9,890 |
|
|
11,710 |
|
|
Investment |
|
|
15,512 |
|
|
15,666 |
|
|
Property and equipment |
11 |
|
2,578,525 |
|
|
2,289,052 |
|
|
Intangible assets |
12 |
|
1,785,976 |
|
|
1,650,176 |
|
|
Total non-current assets |
|
|
4,935,788 |
|
|
4,356,470 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
33,807,508 |
|
|
31,075,804 |
|
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements.
|
|
|
|
|
|
|
3
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|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim balance sheet
As of March 31, 2022 and 2021
(All amounts in thousands of reais)
|
|
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|
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|
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Note |
|
March 31, 2022 |
|
December 31, 2021 |
|
Liabilities and equity |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Payables to third parties |
13 |
|
13,180,321 |
|
13,217,150 |
|
Trade payables |
|
|
557,654 |
|
578,004 |
|
Payables to related parties |
9 |
|
282,767 |
|
543,621 |
|
Deposits |
14 |
|
5,145,864 |
|
3,056,444 |
|
Salaries and social security charges |
15 |
|
182,974 |
|
259,724 |
|
Taxes and contributions |
16 |
|
55,949 |
|
63,934 |
|
Provision for contingencies |
17 |
|
29,791 |
|
27,653 |
|
Borrowings |
18 |
|
1,110,372 |
|
1,005,787 |
|
Derivative Financial Instruments |
18 |
|
192,743 |
|
14,317 |
|
Deferred revenue |
|
|
147,489 |
|
162,566 |
|
Other liabilities |
|
|
40,521 |
|
73,719 |
|
Total current liabilities |
|
|
20,926,445 |
|
19,002,919 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Deferred income tax and social contribution |
19 |
|
1,421,705 |
|
1,391,760 |
|
Deposits |
14 |
|
568,515 |
|
77,552 |
|
Provision for contingencies |
|
|
13,656 |
|
13,910 |
|
Deferred revenue |
|
|
16,751 |
|
17,300 |
|
Other liabilities |
|
|
69,173 |
|
70,165 |
|
Total non-current liabilities |
|
|
2,089,800 |
|
1,570,687 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
23,016,245 |
|
20,573,606 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Share capital |
20 |
|
26 |
|
26 |
|
Treasury shares |
20 |
|
(280,555) |
|
(285,011) |
|
Capital reserve |
20 |
|
6,014,216 |
|
6,076,286 |
|
Retained earnings |
20 |
|
5,082,544 |
|
4,732,624 |
|
Equity valuation adjustments |
20 |
|
(22,372) |
|
(22,372) |
|
Other comprehensive income |
20 |
|
(2,596) |
|
645 |
|
|
|
|
|
|
|
|
Total equity |
|
|
10,791,263 |
|
10,502,198 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
33,807,508 |
|
31,075,804 |
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements.
|
|
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|
|
|
|
4
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investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim statement of income
For the three-month periods ended March, 2022 and 2021
(All amounts in thousands of reais unless otherwise
stated)
|
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|
|
|
|
|
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|
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|
Note |
|
March 31, 2022 |
|
March 31, 2021 |
|
|
|
|
|
|
|
Revenue from transaction activities and other services |
22 |
|
2,054,583 |
|
|
1,384,970 |
|
|
Financial income |
22 |
|
1,330,795 |
|
|
656,983 |
|
|
Other financial income |
22 |
|
41,573 |
|
|
25,248 |
|
|
|
|
|
|
|
|
|
Total revenue and income |
|
|
3,426,951 |
|
|
2,067,201 |
|
|
|
|
|
|
|
|
|
Cost of sales and services |
23 |
|
(1,739,379) |
|
|
(1,146,085) |
|
|
Selling expenses |
23 |
|
(480,650) |
|
|
(368,112) |
|
|
Administrative expenses |
23 |
|
(165,331) |
|
|
(189,070) |
|
|
Financial expenses |
23 |
|
(620,628) |
|
|
(44,388) |
|
|
Other income (expenses), net |
23 |
|
(4,491) |
|
|
40,806 |
|
|
|
|
|
|
|
|
|
Profit before income taxes |
|
|
416,472 |
|
|
360,352 |
|
|
|
|
|
|
|
|
|
Current income tax and social contribution |
19 |
|
(28,651) |
|
|
(19,966) |
|
|
Deferred income tax and social contribution |
19 |
|
(37,901) |
|
|
(69,059) |
|
|
|
|
|
|
|
|
|
Income tax and social contribution |
|
|
(66,552) |
|
|
(89,025) |
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
349,920 |
|
|
271,327 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
Equity holders of the parent
|
|
|
349,920 |
|
|
271,266 |
|
|
Non-controlling interests
|
|
|
— |
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share - R$ |
21 |
|
1.0569 |
|
|
0.8221 |
|
|
Diluted earnings per common share - R$ |
21 |
|
1.0504 |
|
|
0.8213 |
|
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements.
|
|
|
|
|
|
|
5
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim statement of comprehensive
income
For the three-month periods ended March, 2022 and 2021
(All amounts in thousands of reais)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
March 31, 2021 |
|
|
|
|
|
|
Net income for the period |
|
349,920 |
|
|
271,327 |
|
|
Other comprehensive income that may be reclassified to
the
statement of income in subsequent periods
|
|
|
|
|
|
Currency translation adjustment |
|
(592) |
|
|
78 |
|
|
Loss on investments designated at fair value through
OCI |
|
339 |
|
|
238 |
|
|
Derivative Financial Instruments through OCI |
|
(4,356) |
|
|
— |
|
|
Income tax and social contribution |
|
1,370 |
|
|
(81) |
|
|
Other comprehensive income for the period |
|
346,681 |
|
|
271,562 |
|
|
|
|
|
|
|
Attributable to |
|
|
|
|
|
Equity holders of the parent |
|
346,681 |
|
|
271,502 |
|
|
Non-controlling interests |
|
— |
|
|
60 |
|
|
Net income for the period |
|
346,681 |
|
|
271,562 |
|
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements.
|
|
|
|
|
|
|
6
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim statement of changes in equity
For the three-month periods ended March 31, 2022 and 2021
(All amounts in thousands of reais)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital reserve |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
Share capital |
|
Treasury shares |
|
Capital reserve |
|
Share-based long-term incentive plan (LTIP) |
|
Profit reserve Retained earnings |
|
Equity valuation adjustments |
|
Other comprehensive income |
|
Total |
|
Non-
controlling
interests
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2020 |
|
|
26 |
|
|
(13,609) |
|
|
5,690,089 |
|
|
94,199 |
|
|
3,566,522 |
|
|
(22,372) |
|
|
491 |
|
|
9,315,346 |
|
|
12,113 |
|
|
9,327,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
271,267 |
|
|
— |
|
|
— |
|
|
271,267 |
|
|
60 |
|
|
271,327 |
|
|
Currency translation adjustment |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
78 |
|
|
78 |
|
|
— |
|
|
78 |
|
|
Gain on financial assets through other OCI |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
157 |
|
|
157 |
|
|
— |
|
|
157 |
|
|
Share based long term incentive plan (LTIP) |
|
|
— |
|
|
— |
|
|
— |
|
|
81,275 |
|
|
— |
|
|
— |
|
|
— |
|
|
81,275 |
|
|
— |
|
|
81,275 |
|
|
(LTIP) of treasury shares |
|
|
— |
|
|
12,723 |
|
|
— |
|
|
(12,723) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
On March 31, 2021 |
|
|
26 |
|
|
(886) |
|
|
5,690,089 |
|
|
162,751 |
|
|
3,837,789 |
|
|
(22,372) |
|
|
726 |
|
|
9,668,123 |
|
|
12,173 |
|
|
9,680,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
894,835 |
|
|
— |
|
|
— |
|
|
894,835 |
|
|
122 |
|
|
894,957 |
|
|
Currency translation adjustment |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(195) |
|
|
(195) |
|
|
— |
|
|
(195) |
|
|
Gain on financial assets through OCI |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
114 |
|
|
114 |
|
|
— |
|
|
114 |
|
|
Non-controlling |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(12,295) |
|
|
(12,295) |
|
|
Shares issued |
|
|
— |
|
|
— |
|
|
138,665 |
|
|
(138,665) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Share based long term incentive plan (LTIP) |
|
|
— |
|
|
— |
|
|
— |
|
|
224,133 |
|
|
— |
|
|
— |
|
|
— |
|
|
224,133 |
|
|
— |
|
|
224,133 |
|
|
Acquisition of treasury shares |
|
|
— |
|
|
(284,812) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(284,812) |
|
|
— |
|
|
(284,812) |
|
|
(LTIP) of treasury shares |
|
|
— |
|
|
687 |
|
|
— |
|
|
(687) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2021 |
|
|
26 |
|
|
(285,011) |
|
|
5,828,754 |
|
|
247,532 |
|
|
4,732,624 |
|
|
(22,372) |
|
|
645 |
|
|
10,502,198 |
|
|
— |
|
|
10,502,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
20 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
349,920 |
|
|
— |
|
|
— |
|
|
349,920 |
|
|
— |
|
|
349,920 |
|
|
Currency translation adjustment
|
20 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(592) |
|
|
(592) |
|
|
— |
|
|
(592) |
|
|
Gain on financial assets through OCI |
20 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
222 |
|
|
222 |
|
|
— |
|
|
222 |
|
|
Derivative Financial Instruments through OCI |
20 |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
(2,871) |
|
|
(2,871) |
|
|
— |
|
|
(2,871) |
|
|
Share based long term incentive plan (LTIP) |
20 |
|
— |
|
|
— |
|
|
|
|
35,999 |
|
|
— |
|
|
— |
|
|
— |
|
|
35,999 |
|
|
— |
|
|
35,999 |
|
|
Acquisition of treasury shares |
20 |
|
— |
|
|
(93,613) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(93,613) |
|
|
— |
|
|
(93,613) |
|
|
(LTIP) of treasury shares |
20 |
|
— |
|
|
98,069 |
|
|
— |
|
|
(98,069) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022 |
|
|
26 |
|
|
(280,555) |
|
|
5,828,754 |
|
|
185,462 |
|
|
5,082,544 |
|
|
(22,372) |
|
|
(2,596) |
|
|
10,791,263 |
|
|
— |
|
|
10,791,263 |
|
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements.
|
|
|
|
|
|
|
7
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Unaudited
condensed consolidated interim statement of cash flows
For the three-month periods ended March 31, 2022 and 2021
(All amounts in thousands of reais)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
March 31, 2021 |
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Profit before income taxes |
416,472 |
|
360,352 |
|
Expenses (revenues) not affecting cash:
|
|
|
|
|
Depreciation and amortization
|
249,022 |
|
158,302 |
|
Chargebacks and ECL
|
249,715 |
|
173,133 |
|
Accrual of provision for contingencies
|
5,928 |
|
5,357 |
|
Share based long term incentive plan (LTIP)
|
35,999 |
|
79,671 |
|
Reversal of taxes and contributions
|
— |
|
(29,114) |
|
Loss on disposal of property, equipment, and intangible
assets
|
2,345 |
|
4,645 |
|
Interest accrued
|
218,081 |
|
12,609 |
|
Other (income) cost, net
|
(4,684) |
|
(3,768) |
|
|
|
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
Accounts receivable
|
(3,181,379) |
|
(78,300) |
|
Financial investments (mandatory guarantee)
|
(257,707) |
|
(20,592) |
|
Inventories
|
263 |
|
(22,617) |
|
Taxes recoverable
|
51,162 |
|
25,277 |
|
Other receivables
|
(47,250) |
|
(21,985) |
|
Deferred revenue
|
(15,626) |
|
5,699 |
|
Other liabilities
|
(34,520) |
|
(58,298) |
|
Payables to third parties
|
(192,620) |
|
(1,363,442) |
|
Trade payables
|
(21,943) |
|
(29,835) |
|
Receivables from (payables to) related parties
|
(270,740) |
|
21,318 |
|
Deposits
|
2,524,720 |
|
672,919 |
|
Salaries and social charges
|
(76,750) |
|
(20,725) |
|
Taxes and contributions
|
3,122 |
|
25,803 |
|
Provision for contingencies
|
(4,053) |
|
(1,907) |
|
|
— |
|
|
|
|
(350,443) |
|
(105,498) |
|
Income tax and social contribution paid
|
(40,149) |
|
(25,418) |
|
Interest income received
|
677,917 |
|
113,206 |
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
287,325 |
|
(17,710) |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
(439,559) |
|
(249,847) |
|
Purchases and development of intangible assets
|
(241,814) |
|
(148,987) |
|
Redemption (Acquisition) of financial investments
|
(69,437) |
|
40,144 |
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES |
(750,810) |
|
(358,690) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Borrowings
|
250,000 |
|
— |
|
Acquisition of treasury shares
|
(93,613) |
|
— |
|
Payment of leases
|
(4,172) |
|
(3,386) |
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
152,215 |
|
(3,386) |
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS |
(311,270) |
|
(379,786) |
|
Cash and cash equivalents at the beginning of the
period
|
1,794,362 |
|
1,640,065 |
|
Cash and cash equivalents at the end of the period
|
1,483,092 |
|
1,260,278 |
The accompanying notes are an integral part of these unaudited
condensed consolidated interim financial statements
|
|
|
|
|
|
|
8
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
PagSeguro Digital Ltd. ("PagSeguro Digital" or the "Company") is a
holding company, a subsidiary of Universo Online S.A. ("UOL"),
referred to, together with its subsidiaries, as the "PagSeguro
Group", and was incorporated on July 19, 2017. A total of 99.99% of
the shares of PagSeguro Internet Instituição de Pagamento S.A.
("PagSeguro Brazil") were contributed to PagSeguro Digital on
January 4, 2018 and PagSeguro Digital maintains control of
PagSeguro Brazil.
PagSeguro Brazil is a privately held corporation established on
January 20, 2006, with its headquarters located in the city of São
Paulo, Brazil, and engages in providing financial technology
solutions and services and corresponding related activities,
focused principally on micro-merchants and small and medium-sized
businesses ("SMEs").
On March 18, 2021, PagSeguro Group constituted a holding company
incorporated under PagSeguro Digital called PagSeguro Holding Ltd
(“PSHC”). Additionally, during the third quarter of 2021, Pagseguro
Group established four new subsidiaries under PSHC: Pagseguro Chile
SPA (“Pagseguro Chile”), Pagseguro Colombia S.A.S (“Pagseguro
Colombia”), PSGP México S.A de C.V. (“PSGP Mexico”) and Pagseguro
Peru S.A.C. (“Pagseguro Peru”).
The subsidiaries of PagSeguro Digital are PagSeguro Brazil, PagSeg
Participações Ltda. (“PagSeg”), BS Holding and PSHC.
The group subsidiaries are as follows:
•PagSeguro
Brazil subsidiaries are PagSeguro Biva Securitizadora de Créditos
Financeiras S.A. ("Biva Sec"), Fundo de Investimento em Direitos
Creditórios - PagSeguro ("FIDC"), RegistraSeguro S.A.
("RegistraSeguro"), Wirecard Brazil Instituição de Pagamento S.A.
("MOIP") and Concil Inteligência em Negociação S.A
(“Concil”).
•PagSeg
subsidiaries are Net+Phone Telecomunicações Ltda. ("Net+Phone"),
Boa Compra Tecnologia Ltda. ("Boa Compra"), BCPS Online Services
Lda. ("BCPS"), CDS Serviços Financeiros LTDA. ("CDS"), Pagseguro
Biva Serviços Financeiros Ltda (“Biva Serviços”) and PagBank
Participações Ltda (“PagBank”).
•PagBank
subsidiaries are Tilix Digital Ltda. ("TILIX"), YAMÍ Software &
Inovação Ltda. ("YAMÍ") and Zygo Serviços de Tecnologia S.A.
("ZYGO").
•PSHC
subsidiaries are Pagseguro Chile, Pagseguro Colombia, Pagseguro
Peru and PSGP México.
•BS
Holding subsidiary is BancoSeguro S.A.
(“Bancoseguro”).
•Biva
Serviços subsidiary is Pagseguro Biva Correspondente Bancário Ltda
(“Biva Corban”).
These consolidated financial statements include Pagseguro Brazil,
PagSeg, PSHC, BS Holding and the corresponding
subsidiaries.
|
|
|
|
|
|
|
9
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
1.1 Additional Information
During the year ended December 31, 2021, the Company observed that,
in the first three months, there was an increase in the number of
people infected by COVID-19 and consequently the return of partial
shutdowns and social isolation in several cities and states of the
country. In the second quarter of 2021, most of the cities in
Brazil accelerated the vaccination of the population, and
consequently, the Company saw a graduate reopening process, with
the extension of opening hours of commercial activities. In the
third quarter of 2021, the Company observed the return of social
events of the public, and consequently the growth of TPV. In the
fourth quarter of 2021, Brazil began to see an increase in
infections mainly related to the Omicron variant, without causing
an impact on PagSeguro business.
In the first quarter of 2022, Brazil observed a decrease in the
number of people infected and the total deaths by COVID-19 and the
social events and commercial activities basically returned to a
similar level before pandemic. This scenario resulted in higher
transaction payment volume (“TPV”) and consequently higher
revenues.
The Company has a significant variable cost structure mainly
related to TPV, such as processing, interchange, card scheme fees
and chargebacks. Marketing and sales expenses are also variable and
depends on the Company’s strategy to leverage new products and
services such as PagBank. The Company is also still accompanying
the evolution of the Brazilian economy and reassessing, when
necessary, the provisions for loss allowance for expected credit
losses.
The Company has a solid position in terms of cash, liquidity and
working capital levels and in the year ended December 31, 2021, as
well as in the first three months of 2022, and has not faced the
necessity of impairment of assets due to COVID-19.
Furthermore, geopolitical instability arising from conflicts, such
as the ongoing war in Ukraine, and the resulting imposition of
sanctions, taxes or tariffs against Russia and Russia’s response to
such sanctions (including retaliatory acts, such as cyberattacks
and sanctions against other countries) could adversely affect the
global economy or specific international, regional and domestic
markets, including the Brazilian market. Such events could have an
adverse effect on our business and financial performance through
increased worldwide inflation, greater compliance costs, higher
volatility in foreign currency exchange rates, destabilized supply
chains and further market disruptions, including from cyberattacks
targeting technologies that we rely on or the markets in which we
or our customers operate. For this moment the Company has not seen
any significant impact in its operations as a result of the
conflict.
|
|
|
|
|
|
|
10
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
2. Presentation and preparation of the unaudited
condensed consolidated interim financial statements and significant
accounting policies |
These unaudited condensed consolidated interim financial statements
do not include all of the information required for a complete set
of financial statements prepared in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standard Board. However, selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in the
Company’s financial position and performance since the last annual
financial statements.
These unaudited condensed consolidated interim financial statements
for three-month period ended March 31, 2022 were authorized for
issuance by the PagSeguro Digital’s Board of Directors on
June 3, 2022.
2.1. Basis of preparation of the condensed consolidated
interim financial information
These unaudited condensed consolidated interim financial statements
for the three-month period ended March 31, 2022 have been prepared
in accordance with International Accounting Standard 34, “Interim
Financial Reporting” as issued by the International Accounting
Standard Board and disclose all (and only) the applicable
significant information related to the financial statements, which
is consistent with the information utilized by management in the
performance of its duties.
These unaudited condensed consolidated interim financial statements
do not include all the notes of the type normally included in an
annual consolidated financial statement. Accordingly, this report
is to be read in conjunction with the annual consolidated financial
statements for the year ended December 31, 2021 (the “Annual
Financial Statements”).
The accounting policies and critical accounting estimates and
judgments adopted are consistent with those of the previous
financial year and corresponding interim reporting
period.
|
|
|
|
|
|
|
11
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
2.2. New accounting standards not yet
effective
The new and amended standards and interpretations that are issued,
but not yet effective, up to the date of issuance of the
consolidated financial statements are disclosed below. The Company
intends to adopt these new and amended standards and
interpretations, if applicable, when they become
effective.
–IFRS
17 was issued in May 2017 as replacement for IFRS 4 Insurance
Contracts. It requires a current measurement model where estimates
are remeasured in each reporting period. Contracts are measured
using the building blocks of discounted probability-weighted cash
flows, an explicit risk adjustment and a contractual service margin
(CSM) representing the unearned profit of the contract which is
recognised as revenue over the coverage period.
The standard allows a choice between
recognising changes in discount rates either in the statement of
profit or loss or directly in other comprehensive income. The
choice is likely to reflect how insurers account for their
financial assets under IFRS 9. An optional, simplified premium
allocation approach is permitted for the liability for the
remaining coverage for short duration contracts, which are often
written by non-life insurers.
There is a modification of the general
measurement model called the ‘variable fee approach’ for certain
contracts written by life insurers where policyholders share in the
returns from underlying items. When applying the variable fee
approach, the entity’s share of the fair value changes of the
underlying items is included in the CSM. The results of insurers
using this model are therefore likely to be less volatile than
under the general model.
Targeted amendments made in July 2020 aimed
to ease the implementation of the standard by reducing
implementation costs and making it easier for entities to explain
the results from applying IFRS 17 to investors and others. The
amendments also deferred the application date of IFRS 17 to 1
January 2023. The group does not expect the new IFRS to materially
impact its results of operations.
–Amendment
to IAS 1 "Presentation of Financial Statements": issued in May
2020, with the objective of clarifying that liabilities are
classified as current or non-current, depending on the rights that
exist at the end of the period. The classification is not affected
by the entity's expectations or events after the reporting date
(eg, receipt of a waiver or breach of covenant). The amendments
also clarify what "settlement" of a liability refers to under IAS
1. The amendments to IAS 1 are effective as of January 1, 2023. The
group does not expect the new amendment to materially impact its
results of operations.
|
|
|
|
|
|
|
12
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
2.2. New accounting standards not yet effective -
Continued
–Amendment
to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting
Policies: in February 2021 the IASB issued a new amendment to IAS 1
on disclosure of "material" accounting policies rather than
"significant" accounting policies. The amendments define what
"material accounting policy information" is and explain how to
identify it. It also clarifies that immaterial accounting policy
information does not need to be disclosed, but if so, it should not
obscure the relevant accounting information. To support this
change, the IASB also amended the "IFRS Practice Statement 2 Making
Materiality Judgments" to provide guidance on how to apply the
concept of materiality to accounting policy disclosures. This
amendment is effective as of January 1, 2023. The group does not
expect the new amendment to materially impact its results of
operations.
–Amendment
to IAS 8 - Accounting Policies, Change in Estimate and Error
Rectification: the amendment issued in February 2021 clarifies how
entities must distinguish changes in accounting policies from
changes in accounting estimates, as changes in accounting estimates
are applied prospectively to future transactions and other future
events, but changes in accounting policies are generally applied
retrospectively to past transactions and other past events, as well
as to the current period. This amendment is effective as of January
1, 2023. The group does not expect the new amendment to materially
impact its results of operations.
–Amendment
to IAS 12 - Income Taxes: the amendment issued in May 2021 requires
entities to recognize deferred tax on transactions that, on initial
recognition, give rise to equal amounts of taxable and deductible
temporary differences. This typically applies to lease transactions
(right-of-use assets and lease liabilities) and decommissioning and
restoration obligations, as an example, and will require the
recognition of additional deferred tax assets and liabilities. This
amendment is effective as of January 1, 2023.
|
|
|
|
|
|
|
13
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
3. Consolidation of subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022 |
|
Company |
Assets |
Liabilities |
Equity |
Net income (loss) for the period |
Ownership - % |
Level |
|
|
|
|
|
|
|
|
|
Pagseguro Brazil |
24,971,282 |
16,149,456 |
8,821,826 |
304,418 |
99.99 |
Direct |
|
BS Holding |
555,137 |
52 |
555,085 |
16,406 |
99.99 |
Direct |
|
Pagseg Participações |
735,804 |
870 |
734,934 |
30,601 |
99.99 |
Direct |
|
Pagseguro Holding |
14 |
11 |
3 |
(11) |
99.99 |
Direct |
|
Pagbank Participações |
181,786 |
13,796 |
167,990 |
(2,679) |
99.99 |
Indirect |
|
Net+Phone |
384,907 |
97,327 |
287,580 |
15,657 |
99.99 |
Indirect |
|
Boa Compra |
359,282 |
130,480 |
228,802 |
15,773 |
99.99 |
Indirect |
|
BCPS |
1,655 |
27 |
1,628 |
149 |
99.99 |
Indirect |
|
BSEC |
1,508,229 |
1,498,060 |
10,169 |
3,074 |
99.99 |
Indirect |
|
Biva Serviços |
44,887 |
5,189 |
39,698 |
2,450 |
99.99 |
Indirect |
|
Biva Corban |
23,225 |
5,737 |
17,488 |
1,734 |
99.99 |
Indirect |
|
FIDC |
4,885,799 |
856,061 |
4,029,738 |
512,389 |
100.00 |
Indirect |
|
TILIX |
13,761 |
1,223 |
12,538 |
139 |
99.99 |
Indirect |
|
BancoSeguro |
11,683,297 |
11,154,335 |
528,962 |
16,295 |
100.00 |
Indirect |
|
Yamí |
1,968 |
686 |
1,282 |
56 |
99.99 |
Indirect |
|
Registra Seguro |
5,000 |
9 |
4,991 |
— |
99.99 |
Indirect |
|
CDS |
9,339 |
584 |
8,755 |
(719) |
99.99 |
Indirect |
|
Zygo |
3,358 |
9,964 |
(6,606) |
(4,340) |
99.99 |
Indirect |
|
Moip |
782,325 |
591,081 |
191,244 |
(29) |
100.00 |
Indirect |
|
Concil |
4,988 |
8,034 |
(3,046) |
(2,355) |
100.00 |
Indirect |
|
Pagseguro Chile (ii) |
7 |
— |
7 |
— |
100.00 |
Indirect |
|
Pagseguro Colombia |
54 |
59 |
(5) |
(11) |
100.00 |
Indirect |
|
PSGP México (ii) |
1 |
— |
1 |
— |
99.99 |
Indirect |
|
Pagseguro Peru (ii) |
13 |
— |
13 |
— |
99.99 |
Indirect |
|
|
|
|
|
|
|
|
On December 31, 2021 (except for net income, that is presented to
three-month period ended March 31, 2021) |
|
Company |
Assets |
Liabilities |
Equity |
Net income (loss) for the period |
Ownership - % |
Level |
|
|
|
|
|
|
|
|
|
Pagseguro Brazil |
23,863,783 |
15,250,100 |
8,613,683 |
258,445 |
99.99 |
Direct |
|
BS Holding |
545,693 |
7,019 |
538,674 |
16,670 |
99.99 |
Direct |
|
Pagseg Participações (ii) |
648,175 |
5,870 |
642,305 |
— |
99.99 |
Direct |
|
Pagseguro Holding (ii) |
36 |
— |
36 |
— |
99.99 |
Direct |
|
Pagbank Participações (ii) |
180,053 |
9,385 |
170,668 |
— |
99.99 |
Indirect |
|
Net+Phone |
375,347 |
103,424 |
271,923 |
24,006 |
99.99 |
Indirect |
|
Boa Compra |
456,934 |
243,905 |
213,029 |
8,295 |
99.99 |
Indirect |
|
BCPS |
2,022 |
(52) |
2,074 |
167 |
99.99 |
Indirect |
|
BSEC |
1,446,640 |
1,439,545 |
7,095 |
1,361 |
99.99 |
Indirect |
|
Biva Serviços |
42,901 |
5,653 |
37,248 |
80 |
99.99 |
Indirect |
|
Biva Corban |
21,200 |
5,446 |
15,754 |
985 |
99.99 |
Indirect |
|
FIDC |
4,770,455 |
816,980 |
3,953,475 |
577,695 |
100.00 |
Indirect |
|
TILIX |
13,972 |
1,573 |
12,399 |
(196) |
99.99 |
Indirect |
|
BancoSeguro |
10,320,430 |
9,807,767 |
512,663 |
16,678 |
100.00 |
Indirect |
|
Yamí |
2,087 |
861 |
1,226 |
(215) |
99.99 |
Indirect |
|
Registra Seguro |
5,000 |
9 |
4,991 |
— |
99.99 |
Indirect |
|
CDS |
10,057 |
5,583 |
4,474 |
(794) |
99.99 |
Indirect |
|
Zygo |
2,013 |
4,278 |
(2,265) |
(2,041) |
99.99 |
Indirect |
|
Moip |
787,659 |
596,429 |
191,230 |
3,371 |
100.00 |
Indirect |
|
Concil (i) |
2,390 |
3,080 |
(690) |
— |
100.00 |
Indirect |
|
Pagseguro Chile (i) |
7 |
— |
7 |
— |
100.00 |
Indirect |
|
Pagseguro Colombia (i) |
28 |
— |
28 |
— |
100.00 |
Indirect |
|
PSGP México (i) |
1 |
— |
1 |
— |
99.99 |
Indirect |
|
Pagseguro Peru (i) |
13 |
— |
13 |
— |
99.99 |
Indirect |
(i) Entities acquired/created after March 31, 2021.
(ii) Entities with very limited or no operation.
The operational context of the subsidiaries is to be read in
conjunction with the annual financial statements for the year ended
December 31, 2021.
|
|
|
|
|
|
|
14
|
|
|
investors.pagseguro.com |
|
PagSeguro
Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
Operating segments are determined based on the information reported
and reviewed by the Board of Directors, which is responsible for
allocating resources and assessing the performance of the business
and to make PagSeguro Group's strategic decisions.
Considering that all decisions are based on consolidated reports,
and that all decisions related to strategic and financial planning,
purchases, investments and the allocation of funds are made on a
consolidated basis, the PagSeguro Group and its subsidiaries
operate in a single segment, as financial service
agents.
The PagSeguro Group is domiciled in Brazil and has revenue arising
from local customers and customers located abroad. The main revenue
is related to sales from the domestic market. The revenue from
international market represents 1.4%, and 3.3% for the three-month
period ended March 31, 2022 and three-month period ended March 31,
2021 respectively.
|
|
|
|
5. Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Short-term bank deposits |
164,277 |
|
|
569,816 |
|
|
Short-term investment |
1,318,815 |
|
|
1,224,546 |
|
|
|
1,483,092 |
|
|
1,794,362 |
|
Cash and cash equivalents are held for the purpose of meeting
short-term cash needs and include cash on hand, deposits with banks
and other short-term highly liquid investments with original
maturities of three-month or less and with immaterial risk of
change in value. Short-term investments consist mainly of
investments in Brazilian Treasury Bonds ("LFTs") with an average
return of 100% of the Basic Interest Rate (SELIC, 11.75% per year
on March 31, 2022 and 9.25% per year on December 31,
2021).
Consists of investments in Brazilian Treasury Bonds ("LFTs"), in
the amount of R$ 1,131,788 in March 31, 2022 (R$782,647
in December 31, 2021) with an average return of 100% of the Basic
Interest Rate (SELIC, 11.75% per year on March 31, 2021 and 9.25%
per year on December 31, 2021), invested to comply with certain
requirements for authorized payment institutions as set forth by
the Brazilian Central Bank regulation. This financial asset was
classified at fair value through other comprehensive income.
Unrealized gain on LFTs in three-month period ended March 31, 2022
totaled R$224 (gain of R$157 in the three-month period ended March
31, 2021).
|
|
|
|
|
|
|
15
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
Visa |
Master |
Hipercard |
Elo |
Amex |
Total |
|
Visa |
Master |
Hipercard |
Elo |
Amex |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal obligors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Itaú |
|
1,506,354 |
|
2,471,306 |
|
788,143 |
|
— |
|
— |
|
4,765,803 |
|
|
1,333,263 |
|
2,045,133 |
|
757,306 |
|
— |
|
— |
|
4,135,702 |
|
|
Bradesco |
|
1,516,037 |
|
178,136 |
|
— |
|
989,233 |
|
361,368 |
|
3,044,773 |
|
|
1,630,756 |
|
160,690 |
|
— |
|
842,352 |
|
296,696 |
|
2,930,494 |
|
|
Nubank |
|
— |
|
2,463,296 |
|
— |
|
— |
|
— |
|
2,463,296 |
|
|
121,398 |
|
744,030 |
|
— |
|
— |
|
— |
|
865,428 |
|
|
Santander |
|
829,393 |
|
1,427,788 |
|
— |
|
— |
|
6,990 |
|
2,264,171 |
|
|
1,384,872 |
|
77,639 |
|
— |
|
467,305 |
|
— |
|
1,929,816 |
|
|
Banco do Brasil |
|
1,421,893 |
|
223,128 |
|
— |
|
512,673 |
|
— |
|
2,157,694 |
|
|
818,937 |
|
1,464,314 |
|
— |
|
— |
|
3,253 |
|
2,286,504 |
|
|
Banco Carrefour |
|
114,751 |
|
673,373 |
|
— |
|
— |
|
— |
|
788,125 |
|
|
216,047 |
|
633,590 |
|
— |
|
— |
|
— |
|
849,637 |
|
|
Porto Seguro |
|
574,578 |
|
164,901 |
|
— |
|
— |
|
— |
|
739,479 |
|
|
— |
|
2,045,699 |
|
— |
|
— |
|
— |
|
2,045,699 |
|
|
CEF |
|
234,976 |
|
189,160 |
|
— |
|
283,320 |
|
— |
|
707,456 |
|
|
550,352 |
|
141,924 |
|
— |
|
— |
|
— |
|
692,276 |
|
|
Banco C6 |
|
— |
|
591,160 |
|
— |
|
— |
|
— |
|
591,160 |
|
|
— |
|
481,017 |
|
— |
|
— |
|
— |
|
481,017 |
|
|
Banco Cooperativo Sicoob |
|
— |
|
584,917 |
|
— |
|
— |
|
— |
|
584,917 |
|
|
362,978 |
|
91,016 |
|
— |
|
9,368 |
|
— |
|
463,362 |
|
|
Banco Inter |
|
— |
|
460,329 |
|
— |
|
— |
|
— |
|
460,329 |
|
|
— |
|
407,601 |
|
— |
|
— |
|
— |
|
407,601 |
|
|
Banco Bradescard |
|
253,878 |
|
72,661 |
|
— |
|
3,336 |
|
— |
|
329,875 |
|
|
206,969 |
|
136,125 |
|
— |
|
257,929 |
|
— |
|
601,023 |
|
|
Other (iv) |
|
2,534,855 |
|
2,553,095 |
|
— |
|
260,580 |
|
622 |
|
5,349,152 |
|
|
1,890,701 |
|
2,088,484 |
|
— |
|
215,378 |
|
770 |
|
4,195,333 |
|
|
Total card issuers(i) |
|
8,986,715 |
|
12,053,251 |
|
788,143 |
|
2,049,142 |
|
368,981 |
|
24,246,231 |
|
|
8,516,273 |
|
10,517,262 |
|
757,306 |
|
1,792,332 |
|
300,719 |
|
21,883,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current card issuers |
|
— |
|
— |
|
— |
|
— |
|
— |
|
24,047,538 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
21,883,892 |
|
|
Non - Current card issuers |
|
— |
|
— |
|
— |
|
— |
|
— |
|
198,692 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cielo - Elo |
|
— |
|
— |
|
— |
|
— |
|
— |
|
17,211 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
42,662 |
|
|
Getnet |
|
— |
|
— |
|
— |
|
— |
|
— |
|
94,379 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
97,248 |
|
|
Other |
|
— |
|
— |
|
— |
|
— |
|
— |
|
9,330 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
11,716 |
|
|
Total acquirers (ii) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
120,920 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
151,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital loans |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,008,742 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,069,671 |
|
|
Working capital loans ECL |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(340,205) |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
(256,927) |
|
|
Credit card receivables |
|
— |
|
— |
|
— |
|
— |
|
— |
|
852,445 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
726,095 |
|
|
Credit card receivables ECL |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(251,534) |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
(174,046) |
|
|
Other credit iniciatives |
|
— |
|
— |
|
— |
|
— |
|
— |
|
193,598 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
110,050 |
|
|
Other credit iniciatives ECL |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(6,038) |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
(6,166) |
|
|
Total credit receivables |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,457,008 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,468,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,265,273 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
1,239,797 |
|
|
Non - Current |
|
— |
|
— |
|
— |
|
— |
|
— |
|
191,735 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
228,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accounts receivable |
|
— |
|
— |
|
— |
|
— |
|
— |
|
98,562 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
156,700 |
|
|
Other accounts receivable ECL |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(3,364) |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
(3,493) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accounts receivable |
|
8,986,715 |
|
12,053,251 |
|
788,143 |
|
2,049,142 |
|
368,981 |
|
25,919,356 |
|
|
8,516,273 |
|
10,517,262 |
|
757,306 |
|
1,792,332 |
|
300,719 |
|
23,657,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
25,528,929 |
|
|
|
|
|
|
|
23,428,522 |
|
|
Non - Current |
|
|
|
|
|
|
390,428 |
|
|
|
|
|
|
|
228,880 |
|
|
|
|
|
|
|
|
16
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
7. Accounts
receivable
(Continued)
(i)Card
issuers: receivables derived from transactions where PagSeguro
Brazil acts as the financial intermediary in operations with the
issuing banks, related to the intermediation agreements between
PagSeguro Brazil and Visa, Mastercard, Hipercard, Amex or Elo.
However, PagSeguro Brazil’s contractual accounts receivable are
with the financial institutions, which are the legal obligors on
the accounts receivable payment. Additionally, amounts due within
27 days of the original transaction, including those that fall due
with the first installment of installment receivables, are
guaranteed by Visa, Mastercard, Hipercard, Amex or Elo, as
applicable, if the legal obligors do not make the
payment.
(ii)Acquirers:
refers to card processing transactions to be received from the
acquirers, which are a third parties acting as financial
intermediaries between the issuing bank and PagSeguro
Brazil.
(iii)The
ECL (“expected credit losses”), are measured according to the IFRS
9. The provision rates are based on the internal credit rating that
considers external information and are based on days past due.
Every report date, PagSeguro reassesses the premises to adjust the
historical credit loss experience with prospective
information.
(iv)Refers
to other dispersed receivables from legal obligors.
The maturity analysis of accounts receivable is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Past due after 91 days |
|
202,111 |
|
155,495 |
|
Past due within 31 to 90 days |
|
42,989 |
|
32,703 |
|
Past due within 30 days |
|
34,807 |
|
25,445 |
|
Due within 30 days |
|
3,901,151 |
|
4,214,521 |
|
Due within 31 to 120 days |
|
13,482,680 |
|
12,033,372 |
|
Due within 121 to 180 days |
|
3,945,573 |
|
3,457,830 |
|
Due within 181 to 360 days |
|
4,520,759 |
|
3,808,539 |
|
Due after 360 days |
|
390,428 |
|
370,128 |
|
Expected credit losses |
|
(601,142) |
|
(440,631) |
|
|
|
25,919,357 |
|
23,657,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Income tax and Social contribution |
|
299,761 |
|
|
294,955 |
|
|
Social integration program (i) |
|
127,849 |
|
|
167,701 |
|
|
Other |
|
6,774 |
|
|
6,834 |
|
|
|
|
434,384 |
|
|
469,490 |
|
(i)Refers
to Social Integration Program (PIS) and Social Contribution on
Revenues (COFINS) recoverable on transaction activities and other
services and purchase of POS devices.
|
|
|
|
|
|
|
17
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
9. Related-party balances and transactions |
i)Balances
and transactions with related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
Payables |
|
Payables |
|
|
|
|
|
|
Immediate parent |
|
|
|
|
UOL - sales of services (a)
|
28,304 |
|
|
16,216 |
|
|
UOL - shared service costs (b)
|
17,501 |
|
|
19,093 |
|
|
UOL – Deposits (c)
|
112,827 |
|
|
248,271 |
|
|
|
|
|
|
|
Affiliated companies |
|
|
|
|
UOL Edtech Tecnologia - Deposits (c)
|
100,412 |
|
|
229,250 |
|
|
UOL Diveo - sales of services (d)
|
190 |
|
|
7,612 |
|
|
Compasso Informática S.A.(d)
|
14,129 |
|
|
12,853 |
|
|
Others
|
9,404 |
|
|
10,326 |
|
|
|
282,767 |
|
|
543,621 |
|
(a)Sales
of services refers mainly to the purchase of advertising services
from UOL.
(b)Shared
services costs mainly related to payroll costs that are incurred by
the parent company UOL and are charged to PagSeguro
Group.
(c)Certificate
of deposits (CD) acquired by UOL and UOL Edtech from BancoSeguro
with interest rate between 110% to 120% per year of CDI. The
maturity analysis is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Due within 30 days |
|
58,270 |
|
|
— |
|
|
Due within 31 to 120 days |
|
21,261 |
|
|
— |
|
|
Due within 121 to 180 days |
|
10,555 |
|
|
193,592 |
|
|
Due within 181 to 365 days |
|
123,153 |
|
|
283,929 |
|
|
|
|
213,239 |
|
|
477,521 |
|
(d)This
payable refers mainly to colocation and cloud
services.
|
|
|
|
|
|
|
18
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
9. Related-party
balances and transactions
(continued)
ii)Revenue
and expense from transactions with related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month period |
|
March 31, 2022 |
|
March 31, 2021 |
|
Revenue |
|
Expense |
|
Revenue |
|
Expense |
|
Immediate parent |
|
|
|
|
|
|
|
|
UOL - shared service costs (a)
|
— |
|
|
22,466 |
|
|
— |
|
|
19,150 |
|
|
UOL - sales of services (b)
|
793 |
|
|
22,314 |
|
|
775 |
|
|
20,865 |
|
|
UOL - deposits (c)
|
— |
|
|
4,505 |
|
|
— |
|
|
106 |
|
|
Affiliated companies |
|
|
|
|
|
|
|
|
UOL Diveo - sales of services (d)
|
— |
|
|
617 |
|
|
— |
|
|
1,017 |
|
|
Compasso Informática S.A.(d)
|
— |
|
|
31,689 |
|
|
— |
|
|
20,306 |
|
|
UOL Edtech Tecnologia (c)
|
— |
|
|
5,295 |
|
|
— |
|
|
— |
|
|
Transfolha Transportadora e Distribuição Ltda.
|
— |
|
|
— |
|
|
— |
|
|
5,573 |
|
|
Others
|
213 |
|
|
1,776 |
|
|
249 |
|
|
169 |
|
|
|
1,006 |
|
|
88,662 |
|
|
1,024 |
|
|
67,186 |
|
(a)Shared
services costs mainly related to payroll costs sharing that are
incurred by the parent company UOL and are charged to PagSeguro.
Such costs are included in administrative expenses.
(b)Sale
of services expenses is related to advertising services from UOL
and revenue is related to intermediation fees.
(c)Expenses
are related to UOL and UOL Edtech purchase of BancoSeguro's
Certificate of Deposits (CD).
(d)Expenses
related to colocation and cloud services.
iii)Key
management compensation
Key management compensation includes short and long-term benefits
of PagSeguro Brazil's executive officers. The short and long-term
compensation related to the executive officers for the three-month
period ended March 31, 2022 amounted to R$9,289 (March 31, 2021 -
R$29,130).
|
|
|
|
10. Business combinations |
On August 12, 2021, PagSeguro Brazil acquired 100% of the share
capital and obtained control of Concil. Total consideration
amounted to R$43,896 and the total net assets acquired at fair
value amounted to R$23,165. The consideration paid in cash amounted
to R$35,000 and the remaining portion in amount of R$8,896 was
recognized in other liabilities and will be retained for the
achievement of metrics. Concil main activity is in the information
technology industry, focused on the processing of back-office
solutions, including reconciliation services for the capture of
credit cards with acquirers and sub acquirers.
|
|
|
|
|
|
|
19
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
The preliminary purchase price allocation ("PPA") was completed on
September 30, 2021, which included the recognition of a customer
portfolio with a fair value of R$3,839, non-compete agreement of
R$940 and software of R$33,136. The Company has also recognized a
contingency liability and indemnification assets of R$7,848
resulting in the recognition of goodwill of R$20,731, which is
attributable mainly to operational synergy and cost
reductions.
The PPA was elaborated considering projections for the period of
five years based on management's budgets for Concil and applying an
inflation rate plus the estimated growth of GDP of services
(fluctuating from 2.0% to 4.5% per year) in order to project future
cash flows, discount rate based on WACC (fluctuating from 17.5% to
19.5% per year).
These acquisitions are in accordance with PagSeguro Group's
business strategies, ramping up investments on new technologies,
products, and services for the Group’s digital ecosystem. The fair
value of assets and liabilities acquired is detailed in our annual
financial statements for the year ended December 31,
2021.
|
|
|
|
11. Property and equipment |
a)Property
and equipment are composed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
Cost |
|
Accumulated depreciation |
|
Net |
|
|
|
|
|
|
|
Data processing equipment |
115,377 |
|
|
(54,267) |
|
|
61,110 |
|
|
Machinery and equipment (i) |
3,225,599 |
|
|
(797,853) |
|
|
2,427,746 |
|
|
Buildings Leasing |
98,544 |
|
|
(30,952) |
|
|
67,592 |
|
|
Other |
30,610 |
|
|
(8,533) |
|
|
22,077 |
|
|
Total |
3,470,130 |
|
|
(891,605) |
|
|
2,578,525 |
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Cost |
|
Accumulated depreciation |
|
Net |
|
|
|
|
|
|
|
Data processing equipment |
106,643 |
|
|
(51,294) |
|
|
55,349 |
|
|
Machinery and equipment (i) |
2,798,823 |
|
|
(654,360) |
|
|
2,144,463 |
|
|
Buildings Leasing |
94,048 |
|
|
(26,928) |
|
|
67,120 |
|
|
Other |
29,909 |
|
|
(7,789) |
|
|
22,120 |
|
|
Total |
3,029,423 |
|
|
(740,371) |
|
|
2,289,052 |
|
|
|
|
|
|
|
|
20
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
11. Property
and equipment
(continued)
b)The
changes in cost and accumulated depreciation were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data processing equipment |
|
Machinery and equipment (i) |
|
Buildings Leasing (ii) |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Cost |
77,413 |
|
|
1,881,556 |
|
|
79,890 |
|
|
22,114 |
|
|
2,060,973 |
|
|
Accumulated depreciation |
(35,572) |
|
|
(204,154) |
|
|
(12,621) |
|
|
(6,013) |
|
|
(258,360) |
|
|
Net book value |
41,841 |
|
|
1,677,402 |
|
|
67,269 |
|
|
16,101 |
|
|
1,802,613 |
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
Opening balance |
|
|
|
|
|
|
|
|
|
|
Cost |
29,230 |
|
|
917,267 |
|
|
14,156 |
|
|
7,796 |
|
|
968,449 |
|
|
Purchases
|
29,940 |
|
|
931,859 |
|
|
15,013 |
|
|
10,478 |
|
|
987,290 |
|
|
Disposals
|
(1,226) |
|
|
(14,601) |
|
|
(857) |
|
|
(2,902) |
|
|
(19,586) |
|
|
Acquisition of subsidiary
|
516 |
|
|
9 |
|
|
— |
|
|
220 |
|
|
745 |
|
|
Depreciation |
(15,722) |
|
|
(450,206) |
|
|
(14,305) |
|
|
(1,777) |
|
|
(482,010) |
|
|
Depreciation
|
(16,407) |
|
|
(453,592) |
|
|
(14,804) |
|
|
(3,137) |
|
|
(487,940) |
|
|
Disposals
|
1,063 |
|
|
3,389 |
|
|
499 |
|
|
1,445 |
|
|
6,396 |
|
|
Acquisition of subsidiary
|
(378) |
|
|
(3) |
|
|
— |
|
|
(85) |
|
|
(466) |
|
|
Net book value |
55,349 |
|
|
2,144,463 |
|
|
67,120 |
|
|
22,120 |
|
|
2,289,052 |
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
Cost |
106,643 |
|
|
2,798,823 |
|
|
94,048 |
|
|
29,909 |
|
|
3,029,423 |
|
|
Accumulated depreciation |
(51,294) |
|
|
(654,360) |
|
|
(26,928) |
|
|
(7,789) |
|
|
(740,371) |
|
|
Net book value |
55,349 |
|
|
2,144,463 |
|
|
67,120 |
|
|
22,120 |
|
|
2,289,052 |
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
Opening balance |
|
|
|
|
|
|
|
|
|
|
Cost |
8,734 |
|
|
426,776 |
|
|
4,496 |
|
|
701 |
|
|
440,707 |
|
|
Purchases
|
8,852 |
|
|
429,134 |
|
|
4,496 |
|
|
1,573 |
|
|
444,055 |
|
|
Disposals
|
(118) |
|
|
(2,358) |
|
|
— |
|
|
(872) |
|
|
(3,348) |
|
|
Depreciation |
(2,973) |
|
|
(143,493) |
|
|
(4,024) |
|
|
(744) |
|
|
(151,234) |
|
|
Depreciation
|
(3,085) |
|
|
(144,234) |
|
|
(4,041) |
|
|
(877) |
|
|
(152,237) |
|
|
Disposals
|
112 |
|
|
741 |
|
|
17 |
|
|
133 |
|
|
1,003 |
|
|
Net book value |
61,110 |
|
|
2,427,746 |
|
|
67,592 |
|
|
22,077 |
|
|
2,578,525 |
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Cost |
115,377 |
|
|
3,225,599 |
|
|
98,544 |
|
|
30,610 |
|
|
3,470,130 |
|
|
Accumulated depreciation |
(54,267) |
|
|
(797,853) |
|
|
(30,952) |
|
|
(8,533) |
|
|
(891,605) |
|
|
Net book value |
61,110 |
|
|
2,427,746 |
|
|
67,592 |
|
|
22,077 |
|
|
2,578,525 |
|
(i)Net
book value of machinery and equipment are R$2,367,986 POS devices
(R$2,091,671 as of December 31, 2021), which are depreciated over 5
years. The depreciation of POS in the three-month period ended
March 31, 2022, amounted to R$142,664 (R$95,696 in the three-month
period ended March 31, 2021). On March 31, 2022, PagSeguro have
contractual obligations to acquire POS Devices in the amount of
R$1,540,736 (R$1,650,885 on December 31, 2021).
(ii)The
leasing context is to be read in conjunction with the annual
financial statements for the year ended December 31, 2021. As of
March 31, 2022, PagSeguro had a lease liability presented in other
current liabilities in the amount of 16,707 (R$15,690 in December
31, 2021) and as non-current liability in the amount of R$50,992
(R$51,521 in December 31, 2021). In the three month period ended
March 31, 2022, the Company incurred in financial expenses related
to these leases of R$4,172 (R$3,386 in the three month period ender
March, 2021).
|
|
|
|
|
|
|
21
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
a)Intangible
assets are composed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
Cost |
|
Accumulated amortization |
|
Net |
|
|
|
|
|
|
|
Expenditures related to software and technology (i) |
2,228,179 |
|
|
(865,689) |
|
|
1,362,490 |
|
|
Software licenses |
227,030 |
|
|
(63,114) |
|
|
163,916 |
|
|
Goodwill (ii) |
209,908 |
|
|
— |
|
|
209,908 |
|
|
Other |
67,768 |
|
|
(18,106) |
|
|
49,662 |
|
|
|
2,732,885 |
|
|
(946,909) |
|
|
1,785,976 |
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Cost |
|
Accumulated amortization |
|
Net |
|
|
|
|
|
|
|
Expenditures related to software and technology (i) |
2,016,541 |
|
|
(772,804) |
|
|
1,243,737 |
|
|
Software licenses |
196,854 |
|
|
(53,129) |
|
|
143,725 |
|
|
Goodwill (ii) |
209,908 |
|
|
— |
|
|
209,908 |
|
|
Other |
67,768 |
|
|
(14,962) |
|
|
52,806 |
|
|
|
2,491,071 |
|
|
(840,895) |
|
|
1,650,176 |
|
(i)The
PagSeguro Group capitalizes expenses incurred with the development
of platforms, which are amortized over their useful lives of
approximately five years.
(ii)The
balances comprise the goodwill arising from the acquisition of the
companies Biva, BancoSeguro, Yamí, Zygo, Moip and
Concil.
|
|
|
|
|
|
|
22
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
12. Intangible assets
(continued)
b)The
changes in cost and accumulated amortization were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures with software and technology |
|
Software licenses |
|
Goodwill |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Cost |
1,319,061 |
|
|
103,256 |
|
|
169,667 |
|
|
62,786 |
|
|
1,654,770 |
|
|
Accumulated amortization |
(501,319) |
|
|
(29,060) |
|
|
— |
|
|
(771) |
|
|
(531,150) |
|
|
Net book value |
817,742 |
|
|
74,196 |
|
|
169,667 |
|
|
62,015 |
|
|
1,123,620 |
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
Cost |
697,480 |
|
|
93,597 |
|
|
40,241 |
|
|
4,983 |
|
|
836,301 |
|
|
Additions (i) |
715,382 |
|
|
97,103 |
|
|
40,589 |
|
|
4,983 |
|
|
858,057 |
|
|
Disposals
|
(18,167) |
|
|
(3,645) |
|
|
(348) |
|
|
— |
|
|
(22,160) |
|
|
Acquisition of subsidiary
|
265 |
|
|
139 |
|
|
— |
|
|
— |
|
|
404 |
|
|
Amortization |
(271,484) |
|
|
(24,069) |
|
|
— |
|
|
(14,192) |
|
|
(309,745) |
|
|
Amortization |
(278,219) |
|
|
(24,291) |
|
|
— |
|
|
(14,192) |
|
|
(316,702) |
|
|
Disposals |
6,735 |
|
|
222 |
|
|
— |
|
|
— |
|
|
6,957 |
|
|
Net book value |
1,243,738 |
|
|
143,724 |
|
|
209,908 |
|
|
52,806 |
|
|
1,650,176 |
|
|
|
|
|
|
|
|
|
|
|
|
On December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
Cost |
2,016,541 |
|
|
196,854 |
|
|
209,908 |
|
|
67,768 |
|
|
2,491,071 |
|
|
Accumulated amortization |
(772,804) |
|
|
(53,129) |
|
|
— |
|
|
(14,962) |
|
|
(840,895) |
|
|
Net book value |
1,243,737 |
|
|
143,725 |
|
|
209,908 |
|
|
52,806 |
|
|
1,650,176 |
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
Cost |
211,638 |
|
|
30,176 |
|
|
— |
|
|
— |
|
|
241,814 |
|
|
Additions (i)
|
211,638 |
|
|
30,176 |
|
|
— |
|
|
— |
|
|
241,814 |
|
|
Amortization |
(92,885) |
|
|
(9,985) |
|
|
— |
|
|
(3,144) |
|
|
(106,014) |
|
|
Amortization
|
(92,885) |
|
|
(9,985) |
|
|
— |
|
|
(3,144) |
|
|
(106,014) |
|
|
Net book value |
1,362,490 |
|
|
163,916 |
|
|
209,908 |
|
|
49,662 |
|
|
1,785,976 |
|
|
|
|
|
|
|
|
|
|
|
|
On March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Cost |
2,228,179 |
|
|
227,030 |
|
|
209,908 |
|
|
67,768 |
|
|
2,732,885 |
|
|
Accumulated amortization |
(865,689) |
|
|
(63,114) |
|
|
— |
|
|
(18,106) |
|
|
(946,909) |
|
|
Net book value |
1,362,490 |
|
|
163,916 |
|
|
209,908 |
|
|
49,662 |
|
|
1,785,976 |
|
(i)Refers
to pulverized expenditures with software and technology, mainly
related to customer experience functionalities, such as, digital
payment and digital banking account. Goodwill recorded in business
combinations acquisitions related to Concil and MOIP.
|
|
|
|
|
|
|
23
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
13. Payables to third parties |
Payables to third parties, in the amount of R$13,180,321
(R$13,217,15 as of December 31, 2021) correspond mainly to amounts
to be paid to merchants related to transactions carried out by
their card holders, net of the intermediation fees and discounts
applied. PagSeguro Brazil's average settlement terms agreed upon
with commercial establishments is up to 14 days.
From the total amount of payable to third parties, R$821,630
(R$533,436 as of December 31, 2021) refer to the balance of
transactions settled on merchant's payment account and available to
be used by them and R$4,646,567 (R$5,167,577 as of December 31,
2021) are the balance of the clients maintained in their banking
accounts that are invested by the Company in Certificate of
Deposits with 30 days of maturity and interest average rate of 59%
of CDI (59% of CDI in December 2021).
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Certificate of Deposit (i) |
4,430,944 |
|
2,510,818 |
|
Interbank deposits (ii) |
1,057,811 |
|
404,998 |
|
Corporate securities (iii) |
225,624 |
|
218,180 |
|
|
5,714,379 |
|
3,133,996 |
|
Current |
5,145,864 |
|
3,056,444 |
|
Non - Current |
568,515 |
|
77,552 |
(i)The
average return is 130% of CDI (163% of CDI in December 2021). From
the total amount, R$501 million refer to certificate of deposits
with interest rates correlated to the IPCA (Brazilian inflation
rates). For these certificates of deposit, the Company contracted
derivative financial instruments (“Swaps”) with the specific
objective of protecting said deposit from fluctuations arising from
inflation, changing IPCA rates for CDI rates. In March 2022, the
Company recorded the net effects of the swap derivatives in the
amount of R$1,329.
(ii)The
average return is 115% of CDI (118% of CDI in December
2021).
(iii)The
average return is 137% of CDI (152% of CDI in December
2021).
The maturity analysis of deposits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Due within 30 days |
|
436,389 |
|
646,232 |
|
Due within 31 to 120 days |
|
1,370,973 |
|
1,029,936 |
|
Due within 121 to 180 days |
|
485,426 |
|
313,008 |
|
Due within 181 to 360 days |
|
2,853,076 |
|
1,067,268 |
|
Due to 361 days or more days |
|
568,515 |
|
77,552 |
|
|
|
5,714,379 |
|
3,133,996 |
|
|
|
|
|
|
|
24
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
14. Deposits
(continued)
The changes in deposits were as follows:
|
|
|
|
|
|
|
On December 31,2020 |
766,086 |
|
Additions |
4,929,926 |
|
Withdraws |
(2,667,612) |
|
Interest |
105,596 |
|
On December 31,2021 |
3,133,996 |
|
Additions |
4,288,336 |
|
Withdraws |
(1,817,347) |
|
Interest |
109,394 |
|
On March 31,2022 |
5,714,379 |
|
|
|
|
15. Salaries and social security charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Profit sharing
|
24,227 |
|
75,076 |
|
Social charges
|
29,811 |
|
39,200 |
|
Payroll accruals
|
95,421 |
|
75,151 |
|
Payroll taxes (LTIP) (i)
|
25,102 |
|
61,359 |
|
Other
|
8,413 |
|
8,938 |
|
|
182,974 |
|
259,724 |
(i)Refers
to social charges and income tax over LTIP and LTIP goals balances.
A significant portion of the balances recorded as of December 31,
2021 was paid during the first quarter of 2022.
|
|
|
|
|
|
|
25
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
16. Taxes and contributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Taxes |
|
|
|
|
Services tax and other (i)
|
175,882 |
|
171,902 |
|
Value-added tax on sales and services
|
732 |
|
117 |
|
Social integration program (ii)
|
28,294 |
|
26,832 |
|
Social contribution on revenues (ii)
|
171,476 |
|
164,330 |
|
Income tax and social contribution (iii)
|
14,725 |
|
31,865 |
|
Other
|
13,735 |
|
12,479 |
|
|
404,844 |
|
407,525 |
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Judicial deposits (iv) |
|
|
|
|
Services tax (i)
|
(161,681) |
|
(159,101) |
|
Social integration program (ii)
|
(26,170) |
|
(25,789) |
|
Social contribution on revenues (ii)
|
(161,044) |
|
(158,701) |
|
|
(348,895) |
|
(343,591) |
|
|
55,949 |
|
63,934 |
(i)Refers
to tax on revenues.
(ii)Refers
mainly to Social Integration Program (PIS) and Social Contribution
on Revenues (COFINS) charged on financial income.
(iii)Refers
to the income tax and social contribution payable.
(iv)The
PagSeguro Group obtained court decisions to deposit the amount
related to the payments in escrow for matters discussed in items
"i", "ii" and "iii" above.
|
|
|
|
|
|
|
26
|
|
|
investors.pagseguro.com |
|
PagSeguro Digital Ltd.
Notes
to the unaudited condensed consolidated interim financial
statements
As of March 31, 2022 and for the three-month periods ended March
31, 2022
(All amounts in thousands of reais unless otherwise
stated)
|
|
|
|
17. Provision for contingencies |
PagSeguro Group is party to labor and civil litigation in progress
and are discussing such matters at the administrative and judicial
levels, which in some cases the PagSeguro Group has made
corresponding judicial deposits. The likelihood of a negative
outcome is assessed periodically and adjusted by management, when
appropriate. Such assessment includes the opinion of its external
legal advisors.
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Civil |
32,465 |
|
33,343 |
|
Labor |
21,438 |
|
18,387 |
|
|
53,903 |
|
51,730 |
|
|
|
|
|
Labor Deposits |
(10,456) |
|
(10,167) |
|
|
(10,456) |
|
(10,167) |
|
|
43,447 |
|
41,563 |
|
|
|
|
|
|