Slide 1: Investor Day 2023
Date of the presentation — Delete if not unused Title of the presentation Investor day 2023
Slide 2: Welcome
Keyword Something you’d like to tell about this particular subject Welcome Ingo Uytdehaage, Co-CEO Ethan Tandowsky, CFO
Slide 3: Agenda
Agenda Commercial Strategy Roelant Prins, CCO Digital Strategy Trevor Nies, SVP Global Head of Digital Davi Strazza, President of North America Break Unified Commerce Strategy People & Culture Gayathri Rajan, SVP Product, Data Brooke Nayden, CHRO Alexa von Bismarck, President of EMEA Platforms Strat
Slide 4: Commercial strategy
Date of the presentation — Delete if not unused Title of the presentation Commercial strategy Roelant Prins, CCO
Slide 5: Industry trends driving our opportunity
Industry trends Driving our opportunity Digital transformation still has a Commerce continues to further Economies are shifting from cash- long way to go globalize based to cashless Regulation is becoming The platform business model is Businesses are more focused on increasingly complex becoming mor
Slide 6: Digital, Unified Commerce, Platforms
Digital Unified Platforms Commerce
Slide 7: Adyen's single platform built to navigate an ever-changing landscape
Adyen’s single platform is built to help businesses navigate an ever-changing landscape One end-to-end solution Global reach, with local Consolidating payments, through a single expertise financial products, and integration data in one destination
Slide 8: Upward trending NPS scores reflect our strategy
Upward trending NPS scores reflect our strategy of pairing best-in-class products and people 65 56 58 58 55 48 49 43 38 36 March 18 October 18 March 19 October 19 June 20 March 21 October 21 March 22 October 22 March 23
Slide 9: Building Adyen's commercial organization for global scale
Building Adyen’s commercial organization for global scale Ramping up our Sales and Account Scaling the ‘Adyen Way of Selling’ Global pillarization for focus and Management functions speed at new scale
Slide 10: Commercial team as of December 31, 2021
Commercial team as of December 31, 2021 Total 799 North America 139 EMEA 527 LATAM 50 APAC 83
Slide 11: Commercial team as of September 30, 2023
Commercial team as of September 30, 2023 Total 1255 North America 284 EMEA 765 LATAM 77 APAC 129
Slide 12: Digital
Keyword Something you’d like to tell about this particular subject Digital Trevor Nies, SVP Global Head of Digital Davi Strazza, President of North America
Slide 13: Online payments are not a solved problem
Online payments are not a solved problem. “15% of online transactions fail”
Slide 14: The industry keeps evolving with new payment methods, regulation, and technology
The industry keeps evolving with new payment methods, regulation, and technology.
Slide 15: Our customers' priorities evolve too
In a continuously evolving landscape, our customers’ priorities evolve too.
Slide 16: Digital Unique Selling Points
Digital Unique Selling Points Performance and cost Simplifying global Value beyond processing by savings at scale complexities through combining payments, data, and a single integration banking in a single solution
Slide 17: Digital Strategy: optimizing performance and cost
Digital Strategy What Adyen enables for its customers We create value for businesses by optimizing performance and cost Performance uplift Cost efficiencies
Slide 18: Performance uplift through the Adyen platform
Performance uplift through the Payment methods customers want Adyen platform Reducing authentication friction Improving issuer approval rates Minimizing fraud Eliminating technical errors
Slide 19: US total cost of payments
5-10% US total cost Adyen fees of payments
Slide 20: Combining growth and savings for Strava
Combining growth and savings for Strava ‣ In our global partnership, we help Strava realize higher auth rates, increase customer retention, and save costs through our single platform’s functionality. ‣ Smart network token application results in strong auth rates uplifts, while retaining customers in
Slide 21: No trade-off between performance and cost
Our customers don’t need to trade-off between performance and cost.
Slide 22: Digital Strategy: simplifying global complexities
Digital Strategy Single integration We create value for customers by simplifying global complexities Consolidated reporting & reconciliation Local acquiring Adapt to regulatory changes seamlessly Best-in-class local payment method offering
Slide 23: Top Digital customers using local payment methods
Top 100 Digital customers using local payment methods 90%
Slide 24: Technology lets customers focus on their core business
Our technology allows customers to focus on their core business while we handle the increasingly complex payment landscape.
Slide 25: Digital Strategy: expanding beyond payment processing
Digital Strategy RevenueProtect We create value for customers by expanding beyond payment processing Smart authentication Insights Issuing Real-time payouts
Slide 26: Going beyond processing enables full ambition
Going beyond processing enables our customers to realize their full ambition.
Slide 27: Commercial success
Commercial success Enabling digital businesses to achieve scalable, profitable growth Fragmentation Local nuance Technical challenges Multiple routes between a potential Payment preferences are becoming Billions of dollars are lost every year shopper and a successful increasingly nuanced in false de
Slide 28: Fragmentation
Fragmentation Transitioning from a simple landscape to a more complex environment From Cardholder PSP Issuers Card number Network token To Cardholder Adyen Issuers Helping US digital businesses orchestrate sophisticated payment routes for an average of 3% authorization uplift with Network Tokens Opt
Slide 29: Local nuance
Local nuance Payment preferences are cultural and ever- changing US payments mix previously The power of local payment methods: Growth Lower cost Customer experience US payments mix today Leveraging learnings from other regions to build best-in-class, enterprise-grade alternatives to cards in the US
Slide 30: Technical challenges
Technical challenges Payments are also not a Authorization rates | industry average solved problem in the US Why the gap and what can be done to close it? ~96% ~85% Card present Card not present As the only tech player covering the entire value chain, Adyen is uniquely positioned to help online busi
Slide 31: Future growth in the US
Future growth in the US US has grown from 10% to around a quarter of our Net Revenue over the last 6 years And we continue to grow. Continued investments Enable online businesses ‣ +600 FTE Single digit market share ‣ Full suite of products ‣ Optimize growth and cost ‣ Machine learning investments f
Slide 32: Key takeaways
Key takeaways 1. 2. 3. Online payments aren't solved. This increased complexity drives the In a market that continues to grow, In fact, they’re getting more complex. need to optimize for both growth our opportunity is largely and cost. untapped.
Slide 33: Unified Commerce
Date of the presentation — Delete if not unused Title of the presentation Unified Commerce Alexa von Bismarck, President of EMEA Gayathri Rajan, SVP Product, Data
Slide 34: Global trends driving our Unified Commerce opportunity
Global trends driving our Unified Commerce opportunity Shopper The largest Businesses around Merchants have to expectations are volumes are still the world are place shoppers at changing processed in-store digitizing the center of their thinking
Slide 35: Accelerating digital transformation of omni-channel businesses
Accelerating the digital transformation of omni-channel businesses with unified payments, data, and financial products on a single platform.
Slide 36: We are a tech company, running a people business
We are a tech company, running a people business
Slide 37: Adyen's winning proposition
Adyen’s winning proposition We help We help our We provide a reduce complexity merchants grow subscription to innovation
Slide 38: Connecting online and in-person payments at scale
We reduce complexity by connecting online and in-person payments at scale Single channel Omnichannel Uni ed Commerce fi
Slide 39: We reduce complexity for Burberry
We reduce complexity for Burberry A reduction of more than Reduce the number of 30 minutes per cash 20 Payment Service contracts to maintain register, per store, Providers (PSPs) to 1 processing, terminals, per day to fully eet management, etc. automate reconciliation from 94 to 12 fl
Slide 40: Multi-region processing
We reduce 468 complexity with multi-region processing 274 2020 2023 YTD Number of UC Customers Processing in Multiple Regions
Slide 41: Helping merchants grow by engaging customers
We help our merchants grow by engaging customers the way they want We unlock new markets We optimize total cost We create additional for merchants at scale of ownership moments to sell
Slide 42: Burton
We help our merchants grow Burton ‣ Through our global partnership (spanning the US, Canada, Europe, and Japan), we implemented sophisticated uni ed commerce journeys for this leading retail brand ‣ Understanding where and how their shoppers like to pay enables them to build out additional interacti
Slide 43: Unified Commerce customers processing across channels at scale
Number of Unified Commerce customers processing across channels at scale 308 231 145 100 September 20 September 21 September 22 September 23 Defined as number of merchants processing at least €10m on both POS and eCommerce, with over €50m in total processed volume in last 12 months
Slide 44: We provide a subscription to innovation
Your title here We provide a Body text here subscription to innovation • Tap-to-Pay on iPhone • Tap-to-Pay on Android • Adyen Giving
Slide 45: Number of Transacting Unified Commerce Terminals
Number of Transacting Unified Commerce Terminals 300000 225000 150000 75000 January 20 July 20 January 21 July 21 January 22 July 22 January 23 September 23
Slide 46: Unified commerce needs-based spectrum
Unified commerce Needs-based spectrum Small Format Large Format F&B H&E Luxury Eyewear Apparel & Home, Furniture, Quick Service (QSR) Hospitality Cosmetics Accessories Garden, Pets, Entertainment Electronics Experience needs Ef ciency needs fi
Slide 47: Products accelerating Unified Commerce transformation
We build products that accelerate the business transformation of Unified Commerce.
Slide 48: Improving the checkout funnel
Improving the checkout funnel performance online and in-store
Slide 49: Reinventing the in-store experience
Reinventing the in-store experience
Slide 50: Our Unified Commerce opportunity is constantly growing
Our opportunity in Unified Commerce is constantly growing. We are uniquely positioned to capture this opportunity in both existing and new markets across all of our core verticals.
Slide 51: Platforms
Date of the presentation — Delete if not unused Title of the presentation Platforms Blake Breathitt SVP Global Head of Platforms & Financial Services Karolina Noronha SVP Product, Platforms & Financial Services
Slide 52: Platform opportunity
Platform opportunity % of SMB respondents who currently use and consider using platform payments offering 74% 34% Now Future Source: BCG & Adyen - How platforms are revolutionizing SMB banking
Slide 53: Ambition: embedded payments and financial services
Our ambition is to empower businesses to maximize their competitive advantage through embedded payments and financial services.
Slide 54: Looking back
Looking back 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 55: Platforms are how we access the long tail
Platforms are how we access the long-tail of the market
Slide 56: Platforms processing >€1 BN annually
Platforms processing Number of Platform >€1 BN annually business customers serviced 70000 17 52500 10 35000 7 17500 2 2020 2021 2022 2023 January 23 March 23 May 23 July 23 September 23
Slide 57: Platform Unique Selling Points
Platform Unique Selling Points We build everything in-house, and We provide platforms with a Unprecedented quality when it run everything on our own licenses true subscription to comes to our uni ed commerce innovation offering fi
Slide 58: Extending Adyen's value chain to platforms
Extending Adyen’s value chain to platforms Merchant Gateway Risk management Processing & Acquiring Credit card schemes Issuers
Slide 59: Extending Adyen's value chain to platforms
Extending Adyen’s value chain to platforms Adyen for Platforms Merchant Gateway Risk management Processing & Acquiring Credit card schemes Issuers
Slide 60: Transacting Platform Terminals
Transacting Platform Terminals 120000 90000 60000 30000 January 20 July 20 January 21 July 21 January 22 July 22 January 23 July 23
Slide 61: We turn platforms into financial technology companies
Platforms want to work with us because we turn them into financial technology companies.
Slide 62: Single platform for embedded payments, finance, and compliance
A single platform for embedded payments, finance, and compliance
Slide 63: BILL partnership
BILL Company dashboard Credit info Account payment info $19,210.00 $19,220.00 bill saad Good morning, Michael Tasks for Acme Solution $16,790.00 Payables $23,000.75 $5,003.22
Slide 64: Platforms global coverage
Platforms Global coverage North America Europe UK Australia
Slide 65: Platforms focus verticals
Platforms Focus verticals Food & Beverage Hospitality Retail Beauty, Health, Marketplaces Financial Services and Wellness
Slide 66: Platforms key takeaways
Platforms Key takeaways We enable platform businesses to capitalize We bring our largest differentiators of global on the opportunity that transaction-based payments and Uni ed Commerce to Platform revenue models bring users – spanning the breadth of the market fi
Slide 67: Break
Date of the presentation — Delete if not unused Title of the presentation Break
Slide 68: People & Culture
Date of the presentation — Delete if not unused Title of the presentation People & Culture Brooke Nayden, CHRO
Slide 69: Measured growth since our founding in 2006
Measured growth since our founding in 2006
Slide 70: Balancing act for long-term success
Balancing act for long-term success Investing in our Bringing on external homegrown talent senior leadership to through internal mobility sharpen ideas
Slide 71: High talent bar throughout the employee journey
High talent bar expected throughout the employee journey
Slide 72: Global Team December 31, 2021
Global Team December 31, 2021 Total 2180 North America 281 EMEA 1592 LATAM 117 APAC 190
Slide 73: Global Team September 30, 2023
Global Team September 30, 2023 Total 4058 North America 623 EMEA 2908 LATAM 223 APAC 304
Slide 74: Global Team September 30, 2023
Global Team September 30, 2023 Total 4058 North America +122% EMEA +83% LATAM +91% APAC +60%
Slide 75: What's next?
What’s next? Slowing our hiring pace in H2 2023 Hiring focused on commercial Lean but autonomous & and tech hubs in 2024 high-impact global team
Slide 76: Financials
Date of the presentation — Delete if not unused Title of the presentation Financials Ethan Tandowsky, CFO
Slide 77: Q3 Business Update
Q3 Business Update 243.1 413.6 339.2 200.3 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Processed Volume Net Revenue €243.1 BN €413.6 MN +21% YoY +22% YoY
Slide 78: Q3 Business Update: Pillar growth trends
Q3 Business Update Pillar growth trends 29.5 150.3 63.3 25.6 123.9 50.8 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Digital Unified Commerce Platforms €150.3 BN €63.3 BN €29.5 BN +21% YoY +25% YoY +15% YoY* Excluding eBay, Platforms growth would have been +120%
Slide 79: Our growth drivers
Our growth drivers New Sales Limited impact on growth in year 1, but in year 2 stronger Share of Wallet Gain contribution as new customers ramp up Growth within our customers: Market Growth our land and expand strategy Payments market growth is a good indicator of underlying customer growth Existing
Slide 80: Growth building blocks: Market volume growth
Our growth building blocks: Market volume growth Mid single digit Low to high 20’s Low double digit to mid teens Low single digit Negative low to mid single digit High single to low double-digit Market Volume Share of Wallet Tiering Price Impact New Wins Ramp of previous year cohort Revenue Growth G
Slide 81: We expect our market to grow high single to low double-digit
We expect our market to grow in high single to low double-digit range in the medium term • On a volume basis, we expect our market to grow high single to low Low twenties double-digit in the coming years High single-digit to low double-digit • COVID significantly impacted market growth before reboun
Slide 82: Growth building blocks: Share of wallet gains
Our growth building blocks: Share of wallet gains Mid single digit Low to high 20’s Low double-digit to mid teens Low single digit Negative low to mid single digit High single to low double-digit Market Volume Share of Wallet Tiering Price Impact New Wins Ramp of previous year cohort Revenue Growth
Slide 83: Continued growth with existing customer base across cohorts
We have continued to grow with our existing customer base across cohorts Processed Volume, € BN 767.5 516.0 303.6 239.6 2019 2020 2021 2022 Pre-2018 2018 2019 2020 2021 2022
Slide 84: Significant runway within Digital and Unified Commerce customers
Significant runway remaining within our Digital and Unified Commerce customer base <40% <60% <20% <30% Newer Older Newer Older Cohorts Cohorts Cohorts Cohorts Estimated current share of wallet Estimated current share of wallet Digital Unified Commerce Signi cant opportunity within our existing custo
Slide 85: In Platforms, we are just getting started
In Platforms, we are just getting started – there is a significant growth opportunity in increasing payment attachment rates <20% 74% 34% Now Future % of SMB respondents who currently use and consider using platform payments offering Platforms Platforms Current estimated share of wallet within exist
Slide 86: Growth building blocks: Tiered price impact
Our growth building blocks: Tiered price impact Mid single digit Low to high 20’s Low double-digit to mid-teens Low single digit Negative low to mid single-digit High single to low double-digit Market Volume Share of Wallet Tiered Price Impact New Wins Ramp of previous year cohort Revenue Growth Gro
Slide 87: Growth building blocks: New sales and ramp of previous year cohort
Our growth building blocks: New sales and ramp of previous year cohort Mid single-digit Low to high 20’s Low double-digit to mid teens Low single-digit Negative low to mid single digit High single to low double-digit Market Volume Share of Wallet Tiered Price Impact New Wins Ramp of Previous Year Re
Slide 88: Sales hiring has accelerated in 2023
Following a few years at a lower pace of growth, sales hiring has accelerated in 2023 New sales have bigger impact in second Sales FTE by Region year and beyond 91 103 33% EMEA 96 130 22 21 APAC 19 31 10 12 LatAm 10 19 43 North 45 America 61 2022 77 New Sales Previous Year Cohort Existing Q3 20 Q3 2
Slide 89: Pillar building blocks
Pillar building blocks Market Growth Relative Pillar Wallet Share Potential New Win Potential to Adyen Overall Growth Digital UC Platforms
Slide 90: Strong net revenue growth expected in the medium term
Putting this together, we continue to expect strong net revenue growth in the medium term Low-to-high Mid single-digit twenties Low double-digit to mid teens Low single-digit Negative low to mid single-digit High single to low double-digit Market Volume Share of Wallet Tiered Price Impact New Wins R
Slide 91: Operating leverage as hiring slows in 2024
We expect to benefit from inherent operating leverage as hiring slows in 2024, leading to EBITDA margin expansion Operating expenses by nature as % of OpEx Highly scalable with limited marginal cost - bene ts of single platform 14% 17% 15% 5% 5% 6% 14% 9% 10% Main operating expenses tied to people 6
Slide 92: Financial Objectives
Financial Objectives Net Revenue Growth EBITDA Margin Capital Expenditure We aim to grow net revenue We aim to improve EBITDA margin We aim to maintain a sustainable annually between the low-twenties to levels above 50% in 2026, as we capital expenditure level of up to 5% and high-twenties percent u
Slide 93: Capital Allocation Policy
Capital Allocation Policy Use of cash: Adyen has Adyen has an A- S&P We continue to see Risk and liquidity not paid any dividends credit rating, which is signi cant investment requirements will since its founding, critical for customers opportunities drive long- become more relevant as according to
Slide 94: Q&A
Date of the presentation — Delete if not unused Title of the presentation Q&A
Slide 95: Thank you
Date of the presentation — Delete if not unused Title of the presentation Thank you
Slide 96: Disclaimer
Disclaimer IN REVIEWING THIS INFORMATION AND/OR ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, YOU ARE They appear in a number of places throughout this presentation and include statements regarding the Company's intentions, AGREEING TO ABIDE BY AND BE BOUND BY THE TERMS OF THIS DISCLAIMER.