Equity (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2018

Dec. 31, 2017

Share capital is composed of the following shares for the three-month periods ended March 31, 2018 and year ended December 31, 2017:


December 31, 2017 shares outstanding			262,288,607
New shares were offered in PaSeguro Digital IPO process (i)			50,925,642
Shares issued related to the LTIP (i)			1,823,727

March 31, 2018 shares outstanding			315,037,976

(i)	During the year 2018, shares of PagSeguro Digital were issued as a result of the initial public offering and long-term incentive plan, see details in note 1.1, and note 1.2 and 17 (c).

Share capital is composed of the following shares:


December 31, 2015 shares outstanding (1)			220,808,044

Capitalization of control party related party payable (2)			13,305,204
Issuance of shares to UOL for transfer of Net+Phone and Boa Compra (3)			28,175,359

December 31, 2016 shares outstanding			262,288,607

December 31, 2017 shares outstanding			262,288,607

PagSeguro Brazil has reflected in its statement of changes in shareholders’ equity the issuance of shares during the periods that such shares were issued. For earnings per share purposes, PagSeguro Brazil has considered 262,288,607 as outstanding during each of the years ended December 31, 2017 and 2016, as shares in (1), (2) and (3) above were issued to UOL, the control party, as part of the recapitalization.

(1)

The shareholder UOL increased PagSeguro Brazil share capital on August 1, 2015 by the amount of R$ 329,961 (164,980,523 shares) and on December 30, 2015, by the amount of R$ 69,087 (34,543,522 shares), in the total amount of R$ 399,048, through the transfer of assets and liabilities related to payment operations which had been previously recorded in UOL, thus centralizing these activities in PagSeguro Brazil from thereon, resulting in total shares outstanding at December 31, 2015 of 220,808,044;

(2)	On May 31 2016, UOL capitalized balances of related parties as a capital contribution in the amount of R$ 26,610 (13,305,204 shares);

(3)

On May 31 2016, UOL capitalized balances of related parties as a capital contribution in the amount of R$ 36,654 (18,327,103 shares) in Net+Phone. After that, as described in Note 2, in July 2016, UOL transferred its investment in Boa Compra and Net+Phone to PagSeguro Brazil, as a capital contribution in the amount of R$ 56,351 (28,175,359 shares).

Dividends - Pagseguro

PagSeguro Brazil bylaws establish that profit for the year and interest on own capital should be allocated, in full or in part, to the constitution of reserves. Presented below are the dividends distributed by each entity consolidated in these financial statements other than Net+Phone and BIVA which recorded accumulated losses in all periods presented:


	December 31,
PagSeguro Brazil	2017			2016			2015
Net income for the year		478,781			115,727			37,010
Net investment		—			—			(27,209	)

Net income		478,781			115,727			9,801

Transfer to legal reserve (5%)		(23,939	)		(5,786	)		(490	)

Adjusted income for the year		454,842			109,941			9,311

Mandatory minimum dividends (1%)		4,548			—			93
Additional dividends proposed (ii)		234,255			—			—

Total dividends distributed		238,803			—			93

Interest on own capital (i)		—			26,059			—

Number of common shares		262,289			262,289			220,808
Dividends per share (in reais)		0.9105			0.0000			0.0004

Interest on own capital		0.0000			0.0994			0.0000

(i)	The distribution of interest on own capital was approved in the shareholders’ meeting held on December 30, 2016.

(ii)

At the Extraordinary General Shareholders Meeting held on September 29, 2017, PagSeguro Brazil’s shareholders approved the distribution of (i) R$142,795 of dividends related to the six-month period ended June 30, 2017 and (ii) R$96,008 in additional dividends related to the year ended December 31, 2016. The total dividends distributed amounted to R$238,803, of which R$184,530 was offset against receivables under the centralized cash management with UOL and the balance of R$54,272 was paid in cash by PagSeguro Brazil to UOL. For further details, see Note 9.

Dividends - Boa Compra


	December 31,
Boa Compra	2017		2016		2015
Net income for the year		5,715		4,858		1,625
Transfer to legal reserve (5%) *		—		—		—

Adjusted income for the year		5,715		4,858		1,625

Mandatory minimum dividends (1%)		—		—		16
Additional dividends proposed		—		—		65

Total dividends distributed		—		—		81

Number of common shares		5,381,317		5,381,317		198,557
Dividends per share (in reais)		0,0000		0,0000		0,4079

*	Allocation to legal reserve was not required because the legal reserve reached the limit of 20% of share capital.