Qliro Ab · OMXSTO:QLIRO
Qliro Ab — Investor Presentation (November 2020)
32 slides from Qliro Ab's investor presentation, Nov 18, 2020
Slide 1: Qliro presentation
Qliro presentation CEO Carolina Brandtman and CFO Robert Stambro 18 November 2020
Slide 2: Qliro is a next generation fintech company focused on digital payments
Qliro is a next generation fintech company focused on digital payments Examples of providers in the digital payment value chain (not exhaustive) Online checkout solutions Pay-after-delivery products Digital native Digital native Traditional sales finance providers Traditional sales finance providers
Slide 3: Fast growing tech company offering payment solutions and digital banking services
Fast growing tech company offering payment solutions and digital banking services on a modern platform ⚫ Business powered by data collection and analytics from millions of Headquarters payment transactions and consumer interactions on Qliro’s platform Payment volume split3) ⚫ True understanding of t
Slide 4: Qliro offers payment solutions that simplify online shopping
Qliro offers payment solutions that simplify online shopping Qliro’s pay-after-delivery offering Invoice 14 days from purchase to payment “Buy Now Pay Later” Payment due date up to 90 days Part Payment Fixed and Flexible part payment Direct payment offered through partnerships Card Direct from bank
Slide 5: Two digital native companies with focus on innovation and online consumer interaction
Two digital native companies with focus on innovation and online consumer interaction Qliro and Klarna’s digital payment platforms... …are fundamentally different compared to traditional sales finance… Online focus ✓ Digital native with focus on innovation, mobile and consumer interactions ✓ Signifi
Slide 6: Why Qliro is winning merchants from Klarna
Why Qliro is winning merchants from Klarna Well-defined market position with focused strategy Target segment: Qliro key success factors Large merchants Niched product for large Stretched product – Nordic online merchants ✓ Not for everyone - clear focus on large local Nordic merchants “one size fits
Slide 7: Number of signed merchants
Number of signed merchants 59 51 33 23 18 14 5 2014 2015 2016 2017 2018 2019 Sep 2020
Slide 8: Qliro's platform enables interactions and cross-selling
Qliro’s platform enables interactions and cross-selling Consumer choose one of Checkout acquisition QLIRO Personalized digitally delivered offers Interaction with Qliro Qliro’s payment options through payment solutions EXPLORATION HUB (Personal loans, savings account, insurance) The consumer enters
Slide 9: Digital banking platform enables partnership with third-party services
Digital banking platform enables partnership with third-party services to create consumer relevance Cross-selling of value added products and services ⚫ Qliro is an enabler for fintech companies with strong Products offered through app customer value propositions to leverage Qliro’s already and webs
Slide 10: Operating leverage on platform scaled to support profitable growth
Operating leverage on platform scaled to support profitable growth Attractive risk adjusted Operating Profit Growing business volumes Operational efficiency income margin Merchants gross sales Payment solutions Operating profit Share of checkout OPEX New and existing Pay-after-delivery merchants Per
Slide 11: Financial snapshot Q3 2020
Financial snapshot Q3 2020 PAD volume Lending to the public Total operating income 21% Y-o-Y growth 13% Y-o-Y growth 16% Y-o-Y growth SEKm SEKm SEKm 2 201 1 815 97 1 466 896 86 1 261 16 653 10 1 305 76 81 1 161 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Payment solutions Digital banking service
Slide 12: Summary
Summary ⚫ Fast growing payment company with a purpose-built platform based on a deep understanding of merchant and consumer needs ⚫ #1 challenger to Klarna for large merchants in the Nordics ⚫ Unique opportunity to expand digital banking services and continue grow cross-selling on large and high-qua
Slide 13: Appendix/Q3 Financials
Appendix/Q3 Financials November 2020
Slide 14: Q3 Highlights
Q3 HIGHLIGHTS QLIRO
Slide 15: Nasdaq listing – 2nd of October
NASDAQ LISTING – 2ND OF OCTOBER HIGHLIGHTS 15
Slide 16: Customer growth
CUSTOMER GROWTH Growth of number of active customers with >200k Q2+Q3 2,3m active customers HIGHLIGHTS NEW App Q1 - Success One of the most downloaded apps in its category with 4.4 rating 8,3m customers log-ins YTD - growth of 30% 16
Slide 17: Payment solutions
PAYMENT SOLUTIONS HIGHLIGHTS Many of our partner merchants are experiencing a strong growth Growth of 32% YoY in number of pay-after-delivery transactions Strongest volume growth 16% YoY since late 2018 17
Slide 18: Digital banking services
DIGITAL BANKING SERVICES High growth rate YoY within personal loans though at slower rate than pre covid-19 HIGHLIGHTS Qliro – more restrictive in our lending Dampening demand since March/April We still see good potential to continue to grow lending but important to do so with the right level of cre
Slide 19: New checkout legislation Sweden
NEW CHECKOUT LEGISLATION SWEDEN HIGHLIGHTS Customer centric approach with +120 variations tested New checkout that is easy and intuitive to use Good results from new checkout design Consumers continues to make informed decision on which payment method they prefer to use 19
Slide 20: Payment solutions – income growth from commercial execution
Payment solutions – income growth from commercial execution Comments Key figures ⚫ Strongest volume growth experienced SEKm Q3 20 Q3 19 Change Y/Y in almost two years, +16% Total operating income 81 76 +7% Loan losses 18 7 ⚫ Income momentum picking up - Lending to the public 1 305 1 161 +12% growth
Slide 21: Digital banking services – continued growth but at a lower level
Digital banking services – continued growth but at a lower level Comments Key figures ⚫ Stricter underwriting and dampened SEKm Q3 20 Q3 19 Change Y/Y demand since Covid-19. Growth in Total operating income 16 10 +59% lending 37% YoY and 5% QoQ Loan losses 5 3 +55% Lending to the public 896 653 +37%
Slide 22: Stable cost development in 2020
Stable cost development in 2020 Comments Cost development, SEKm Opex excl. D&A D&A 13% Y-o-Y growth, opex 11% ⚫ Stable cost level during 2020 90 85 83 1) 83 74 ⚫ Seasonality in cost - Q4 driven by 20 22 21 21 18 higher volumes but lower variance expected in 2020 70 56 63 62 62 ⚫ Depreciations on a s
Slide 23: Stable underlying credit quality
Stable underlying credit quality Comments PAD losses in relation to PAD volumes, % Loan loss level, personal loans, % ⚫ Clean balance sheet strategy gives Reported Adjusted Reported Adjusted* low remaining balance sheet risk - last 3,7 3,7 2,0 market implemented in Q3 2019 1,6 ⚫ PAD underlying credi
Slide 24: Positive trends becoming visible in Q3
Positive trends becoming visible in Q3 Comments Condensed income statement and volumes Change Change ⚫In accordance with our ambitions - SEKm Q3 2020 Q3 2019 Y/Y YTD 20201 YTD 2019 Y/Y Income now grows faster than cost Total income 97 86 13% 280 258 9% Total expenses before loan losses -83 -74 13% -
Slide 25: Capital position and funding platform for growth
Capital position and funding platform for growth Comments Capitalisation, % Funding split ⚫Well capitalised well above regulatory 27.2% SEKm levels - Injection of capital from share 5,4% issue in Qliro Group, +125 SEKm in Q3 100 601 128 ⚫100m in lower capital requirements during 2020 o Changed metho
Slide 26: Focus
Commercial execution - peak quarter Improve customer experience Continued focus on credit quality FOCUS Cost control Income growth to exceed cost growth 26
Slide 27: Appendix other
Appendix other November 2020
Slide 28: Building relationships with millions of consumers
Building relationships with millions of consumers Large and growing database of active consumers… …with strong customer interaction Active consumers (million)1) Number of web and app logins per quarter (million) 2.3 million active 4.7 million unique Large amount of 11 million logins LTM Q3 consumers
Slide 29: Qliro offers four popular payment options
Qliro offers four popular payment options Qliro’s PAD products Our products Product specs Consumer fees1) Invoice 14 days from purchase to • No fee from Qliro payment • Potential fee from merchants Campaigns Payment due date up to 90 days • Setup fee: SEK 39 “Buy Now Pay Later” • Setup fee: SEK 95-3
Slide 30: Highly affordable and attractively priced private loans
Highly affordable and attractively priced private loans, primarily used for loan consolidation Average borrower characteristics and method Age Annual income Employment 41 ~SEK 360k Permanent Loan size Duration Interest rate ~SEK 78k 8.8 years1) ~8.5% Information Pricing Reason Internal and external
Slide 31: Clean balance sheet strategy
Clean balance sheet strategy Efficient risk management through clean-balance-sheet principle ⚫ Loans generally sold shortly after being sent to debt collection ILLUSTRATIVE ⚫ Taking the final and full credit losses eliminates valuation matters from the balance sheet – resulting in a clean balance sh
Slide 32: Qliro
QLIRO