Slide 1: The Powerful Combination of Fintech and Software
The Powerful Combination of Fintech and Software August 11 th 2020 +
Slide 2: Legal Disclaimer
2 Legal Disclaimer No Offer or Solicitation This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registrat
Slide 3: Deal Overview
Deal Overview 3 (1) Includes expected synergies (2) The transaction is subject to the accomplishment of certain conditions, including approval by Linx shareholders at a general shareholders meeting and approval by the competent anti - trust authorities x Serve More Businesses in More Verticals x Int
Slide 4: Combined Company Snapshot
4 (1) LTM 2Q20. Except for Software clients, which number refers to July - 20 (2) LTM 1Q20 (3) Total revenue and income, as reported (4) Synergies not considered Combined Company Snapshot ~ 305,000 ~ 70,000 ~ 375,000 Software Clients COMBINED 4 R$ 149 bn TPV R$ 300 bn GMV Opportunity to penetrate R$
Slide 5: Strategic Rationale: Strengthening Our Complementary Vision
DIGITAL+PHYSICAL Adapt to Omnichannel world and increase sales through multichannel, digital commerce strategy 70k+ Med/Large 500k+ SMBs x Deep expertise in online payments capabilities x Complete suite of digital - enabling solutions (OMS, platform, others) and marketplace integration x Leading ret
Slide 6: Game Plan: Value Creation Horizons
Game Plan: 3 Value Creation Horizons + = Horizon 1: Operational Synergies and Top Line Growth Significant cross - selling opportunities Horizon 3: Higher software penetration in SMB Expand sticky integrated software solutions to improve customer retention & generate more recurring revenue from SMB c
Slide 7: Linx Continues Our Strategy to Integrate Software with Financial Services
Linx Continues Our Strategy to Integrate Software with Financial Services… CRM / LOYALTY Customer engagement and CRM solution to help clients grow more by increasing recurrence, attracting clients through marketing tools RECONCILIATION Streamlines process of reconciling payments transactions and man
Slide 8: Providing A Powerful Integrated Platform
…Providing A Powerful Integrated Platform CORE DIGITAL PAY HUB POS Software Loyalty & Rewards CRM ERP E - commerce Platform OMNI OMS Technology Advertising & Reengagement Payment & Financing Solutions Linx Account QR Linx 73 % % of Recurring Revenues 1 14 % 13 % Module Solutions Auto Parts Car Deale
Slide 9: With Very Attractive Attributes
9 (1) December 2019 (2) Data for 2019, according to the 2020 IDC Survey (3) 2Q20 …With Very Attractive Attributes Customer Operating Financial R$ 181.7mm 2Q20 LTM EBITDA R$ 841mm 2Q20 LTM net revenue 25.5 % 2019 EBTIDA margin 13.7 % (2) e - commerce solution market share (2) 9,000 stores with OMS ~
Slide 10: As We Compete to Capture a Massive Addressable Market
10 Acquiring Banking Credit ~R$ 20 b n + ~R$ 1 0 b n ~R$ 80 bn R$ 11 bn R$ 120 bn + ABC Platform Software TOTAL ~12% share <1 % share + <1 % share ~7% share (PF with Linx ) Stone is Ev olving to Be come a “ One - Stop - Shop” for Commerce in Brazil ~3% share …As We Compete to Capture a Massive Addre
Slide 11: Synergies Plan
• Sell payments services into Linx client base, through our proprietary end - to - end payment platform • Sell banking & financial services into Linx client base, through our proprietary banking platform • Sell software services to our SMB clients, leveraging Linx robust software suite & omnichannel
Slide 12: Transaction Structure, Governance, Timing and Approvals
12 • 100% of Linx shares to be merged into STNE (“ Incorporação de Ações ”), in exchange for cash and newly issued Class A shares of Stone Transaction Structure • Post merger, a new software business unit will be created and will be managed by Stone ´ s leadership and Linx management team • An Advis