Invite | Fireside Chat with MagaluPay CEO

Research evidence excerpt

Invite | Fireside Chat with MagaluPay CEO

is currently migrating toward a more

independent funding structure through deposits, financial letters and proprietary funding

sources. Management believes the shift should lower funding costs, improve returns on credit

products and gradually increase profitability across the platform. The transition also provides

greater control over product design, pricing and customer engagement while reducing

dependence on traditional funding channels.

An increasingly relevant contributor to Magalu's margins. Magazine Luiza's management

has repeatedly highlighted financial services as one of the main drivers of future EBITDA

margin expansion. As merchandising-margin improvements become harder to achieve,

growth in credit, insurance, payments and other high-margin services is expected to represent

a larger share of profitability. The ecosystem approach also strengthens customer loyalty,

increases purchase frequency and improves cross-selling opportunities across the retail

platform.

Leadership change and strategic opportunity. Jorg Friedemann joined MagaluPay in 2025.

His appointment reflects Magalu’s intention to accelerate the digitalization and expansion of

its financial-services platform while leveraging data, technology and customer relationships

built across the broader ecosystem. Under his leadership, MagaluPay is expected to focus on

increasing penetration, profitability and relevance within the group.

Jorg Friedemann has more than 25 years of experience in financial services, having held

executive roles spanning investor relations, ESG, market intelligence, financial analysis, risk

management and banking. Before joining MagaluPay, he was Head of IR at Nubank and was