Block, Inc. · NYSE:XYZ
Block — Square — Merger or Acquisition (August 2021)
27 slides from Block's merger presentation, Aug 2, 2021
Slide 1: Square & Afterpay: Square Adds Afterpay to Seller and Cash App
Square & Afterpay Square Adds Afterpay to Seller and Cash App, Connecting its Ecosystems Exhibit 99.3
Slide 2: Legal Disclaimers
Square + Afterpay | Aug 2021 Legal Disclaimers Additional Information and Where to Find It In connection with the proposed transaction, Square, Inc. (“Square”) intends to file with the Securities and Exchange Commission (“SEC”) a registration statement on Form S4 to register the shares of Square Cla
Slide 3: Legal Disclaimers
Square + Afterpay | Aug 2021 Legal Disclaimers This Presentation includes certain pro forma financial information. Any such pro forma historical financial information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of APT’s views on its, nor
Slide 4: Afterpay: A category and innovation leader in BNPL
Afterpay: A category and innovation leader in BNPL Section 01
Slide 5: BNPL is a rapidly growing opportunity
Afterpay: A Category and Innovation Leader in BNPL Buy-now-pay-later (BNPL) is a rapidly growing opportunity All dollars figures in this presentation are presented in USD, unless otherwise specified. 1. Represents global opportunity, based on IDC's Worldwide New Media Market Model forecast for 2024.
Slide 6: A differentiated product focused on helping consumers spend responsibly
With a differentiated product focused on helping consumers spend responsibly Afterpay: A Category and Innovation Leader in BNPL Afterpay is a category and innovation leader in BNPL Square + Afterpay | Aug 2021 No External Credit Checks or Reporting to Credit Bureaus ✓ Interest Free ✓ Sets Transparen
Slide 7: Strong brand affinity; active consumers and merchants
Strong brand affinity Trusted by Millennial and Gen Z consumers Active Consumers and Merchants Afterpay: A Category and Innovation Leader in BNPL Afterpay’s growing consumer and merchant bases are designed to reinforce one another Intuitive product design Transparent pricing, elegant interface Enabl
Slide 8: Afterpay cohorts have achieved strong acquisition, retention, and engagement
Afterpay cohorts have achieved strong acquisition, retention, and engagement, similar to Square Seller and Cash App cohorts Square + Afterpay | Aug 2021 Afterpay: A Category and Innovation Leader in BNPL Compelling cohort economics have driven recurring revenue and strong returns on investment for A
Slide 9: Afterpay has delivered remarkable growth
With volumes and revenue up ~4x in 2 years Gross Merchant Volume Revenue (Afterpay Total Income) Afterpay: A Category and Innovation Leader in BNPL Afterpay has delivered remarkable growth 105% CAGR (FY19 to FY21) 92% CAGR (FY19 to FY21) Square + Afterpay | Aug 2021 FY21 $925M Afterpay fiscal year e
Slide 10: Afterpay has multiple long-term growth drivers
Afterpay is less than 2% penetrated within $1T of eCommerce spend in existing geographies Afterpay: A Category and Innovation Leader in BNPL Afterpay has multiple long-term growth drivers Square + Afterpay | Aug 2021 New product offerings and monetization streams Continued global expansion Grow in e
Slide 11: Square & Afterpay: A strategic combination
Square & Afterpay: A strategic combination Section 02
Slide 12: A shared vision and culture
Square & Afterpay: A Strategic Combination A shared vision and culture Square + Afterpay | Aug 2021 Economic empowerment” — Square Power an economy in which everyone wins” — Afterpay Our common purpose “ “ Shared focus on empowering and consumers merchants entrepreneurial collaboration Vision Cultur
Slide 13: Afterpay builds connections between Seller and Cash App
Square & Afterpay: A Strategic Combination Afterpay builds connections between Seller and Cash App Afterpay will be integrated into Seller and Cash App, strengthening the connection between these ecosystems and helping drive more commerce between merchants and consumers Square + Afterpay | Aug 2021
Slide 14: Afterpay integrates into Seller
Square & Afterpay: A Strategic Combination Afterpay integrates into Seller Illustrative merchant and product images pictured. Square + Afterpay | Aug 2021 Afterpay will be integrated into Square’s online and in-person checkout solutions, strengthening Square’s omnichannel platform
Slide 15: Afterpay integrates into Cash App
Afterpay integrates into Cash App Illustrative seller and product images pictured. Square + Afterpay | Aug 2021 Afterpay consumers will be able to manage their installments and repayments directly within Cash App, helping to drive repeat engagement Square & Afterpay: A Strategic Combination
Slide 16: Afterpay integrates into Cash App
Afterpay integrates into Cash App Illustrative product images pictured. Square + Afterpay | Aug 2021 Cash App will integrate commerce discovery from Afterpay App to help drive lead generation for merchants and consumer engagement Square & Afterpay: A Strategic Combination CASH APP SELLER
Slide 17: Square and Afterpay combine complementary merchant ecosystems
Creates opportunities to increase Square sellers’ sales and introduce new merchants to the Seller ecosystem Last twelve months (LTM) basis as of 6/30/21 ~100K Merchants Millions of Merchants Products BNPL 30+ products including Point of Sale, Managed Payments, CRM, Business Banking, Online, Hardware
Slide 18: Cash App and Afterpay combine complementary consumer ecosystems
Creates opportunities to give Afterpay consumers access to Cash App’s broad suite of financial services products, and introduces Afterpay merchants to Cash App’s extensive consumer base LTM basis as of 6/30/21 unless otherwise stated 16M Consumers >70M Consumers Products BNPL P2P, Banking, Stocks, B
Slide 19: Afterpay expected to deliver upside to growth
Afterpay expected to deliver upside to growth Square financial information for 12 months ended June 30, 2021 is calculated by aggregating the financial information of the four quarters within that period, as publicly reported. Afterpay’s financial statements are reported in AUD and prepared in accor
Slide 20: Transaction Summary
Transaction Summary Section 03 Exhibit 99.3
Slide 21: Potential for transformative longer-term growth synergies
Transaction Summary Potential for transformative longer-term growth synergies Square + Afterpay | Aug 2021 Consumers Merchants Strengthen Afterpay’s consumer base of 16 million with 70 million annual active Cash App customers Bring Afterpay’s merchant base more consumers through Cash App Reach new C
Slide 22: Transaction overview
Transaction Summary Transaction overview Square + Afterpay | Aug 2021 Strategic Rationale Afterpay is a category leader in the growing BNPL opportunity, focused on helping consumers pay and manage their financial wellbeing responsibly and empowering merchants to grow their business. Square will inte
Slide 23: Appendix
Appendix Section 04
Slide 24: Square | Afterpay Historical Financials
Appendix Square | Afterpay Historical Financials Square + Afterpay | Aug 2021 $USD millions Jul-Dec 2019 (FY 2H19) Jan-Jun 2020 (FY 1H20) Jul-Dec 2020 (FY 2H20) Jan-Jun 2021 (FY 1H21) Gross Profit $1,027 $1,135 $1,598 $2,105 Growth YoY 40% 32% 56% 85% Adj. EBITDA $250 $107 $367 $596 Adj. EBITDA marg
Slide 25: Square Financial Reconciliation
Appendix Square Financial Reconciliation Square + Afterpay | Aug 2021 Square’s half-year historical financial information is calculated by aggregating the quarterly results within the respective half year period. Jul-Dec 2019 Jan-Jun 2020 Jul-Dec 2020 Jan-Jun 2021 FY 2H19 FY 1H20 FY 2H20 FY 1H21 Net
Slide 26: Definitions
Appendix Definitions Square + Afterpay | Aug 2021 SLIDE 5 “BNPL penetration” from CB Insights “Disrupting The $8T Payment Card Business: The Outlook On ‘Buy Now, Pay Later’” (2021). SLIDE 7 “Active Merchants” is defined as having transacted at least once in last 12 months. “Active Consumers” is defi
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