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afterpay Appendix 4D 2021 HALF YEAR REPORT UNDER ASX LISTING RULE 4.2A Company Details NAME OF ENTITY : ACN : REPORTING PERIOD : PREVIOUS PERIOD : Afterpay Limited 618 280 649 Total income¹ Half year ended 31 December 2020 Half year ended 31 December 2019 Results for announcement to the market Statutory Results Summary Loss after tax Loss attributable to the ordinary shareholders of Afterpay Limited Change from period ended 31 December : 2020 $ m 417.2 From ( 79.2 ) from % 89 % 151 % 165 % to to to ( 76.5 ) from 1. Total income consists of Afterpay income , Pay Now revenue and Other income . Total income represents Afterpay's revenue from ordinary activities . The Group achieved total income of $ 417.2 million for the half year ended 31 December 2020 , up 89 % on the half year ended 31 December 2019. Total income growth was supported by an increase in the value of customer orders processed through the Afterpay platform ( referred to as Underlying Sales ) ² as customer and merchant demand for the Afterpay service continues to grow across all of Afterpay's operating regions , particularly in North America and the United Kingdom . The Group delivered earnings before interest , tax , depreciation and amortisation ( EBITDA ) ( excluding significant items ) ² of $ 47.9 million for the half year ended 31 December 2020 , up $ 40.2 million on the half year ended 31 December 2019. Higher EBITDA ( excluding significant items ) ² was driven by an increase in gross profit which more than offset planned increased investment in employment and operating expenses . Investment continues to be directed to scaling Afterpay's global operations and growing Underlying Sales² . $ m 220.3 ( 28.9 ) 2019 The Group recorded a Loss after tax of $ 79.2 million for the half year ended 31 December 2020. The increase in the Loss after tax of $ 47.6 million was primarily driven by the net loss on financial liabilities at fair value of $ 64.8 million . This non - cash loss relates to an increase in the valuation of the Clearpay Put Option liability for the remaining shares in Clearpay Finance Limited ( Afterpay's UK operations or Clearpay ) held by ThinkSmart Limited . The increase in the valuation reflects better than expected results for Clearpay for the period ended 31 December 2020 , improvements to Clearpay's forecast future cash flows and increases in broader market valuations for similar businesses . ( 31.6 ) 2. Underlying Sales and EBITDA ( excluding significant items ) are non - IFRS measures that are not audited but are key financial metrics used by management . 1