Slide 1: Q4 2023 Presentation
Q4 2023 PRESENTATION CEO CHRISTOFFER RUTGERSSON CFO ROBERT STAMBRO Qliro 1
Slide 2: Today's Presenters
TODAY’S PRESENTERS Christoffer Rutgersson Robert Stambro CEO CFO Qliro 2
Slide 3: Agenda
AGENDA • BUSINESS & STRATEGY UPDATE • FINANCIAL UPDATE • OUTLOOK • Q&A Qliro
Slide 4: Business & Strategy Update
BUSINESS & STRATEGY UPDATE Qliro 4
Slide 5: Deliver a world-leading experience for merchants and their customer journey
DELIVER A WORLD-LEADING EXPERIENCE FOR MERCHANTS, AND THEIR CUSTOMER JOURNEY CONFIDENTIAL 5
Slide 6: Value for merchants: checkout conversion, order value, loyal consumers
VALUE FOR MERCHANTS 754kr CREATE INCREASE OUR LEADING CHECKOUT UPSELL LOYAL CONVERSION TO IMPROVE ORDER VALUE CONSUMERS Drive back consumers to the merchant to buy again and again CONFIDENTIAL 6
Slide 7: Qliro Unified Payments
QLIRO UNIFIED PAYMENTS ONE NEW OFFERING FOR ALL RELEVANT PAYMENT METHODS Pay Later Pay Later Merchant benefits: Unified Payments Volumes (% of total Pay Now Volumes) Qliro Quicker onboarding Less administration Pay Now Fewer Pay-outs Less reconciliation ~10% of total Additional payment One contract
Slide 8: Key Business Highlights: Q4 2023
KEY BUSINESS HIGHLIGHTS: Q4 2023 Continued growth and profitability in a declining e-commerce market • Total operating income grew 9% to SEK 116.4 million (106.4), in a declining e-commerce market • Total operating income within business segment Payment Solutions grew 11% to 98.6 (88.9) • Operating
Slide 9: Key Business Highlights: Full-Year 2023
KEY BUSINESS HIGHLIGHTS: FULL-YEAR 2023 Growth and profitability on full-year despite a challenging e-commerce market • Total operating income grew 9% to SEK 448.5 million (410.9), despite a challenging e- commerce market. • Operating expenses decreased by 22 percent to SEK –318,6 million (–410,3) a
Slide 10: Payment Solutions – Our Strategic Direction
PAYMENT SOLUTIONS – OUR STRATEGIC DIRECTION Qliro QLIROin IN the past THE PAST Qliro FORWARD QLIRO GOING going forward Increase our Leading enterprise Accelerate SME sales SME & Norway adressable market capabilities Launch in Norway Build a great Unified Expanding our new Unified Pay Later focus pay
Slide 11: Examples of New Merchant Contracts
EXAMPLES OF NEW MERCHANT CONTRACTS COMMENTS ON Q1 PERFORMANCE SME Clients Enterprise Clients After the end of the period 11 Qliro
Slide 12: Leading Customer Experience
LEADING CUSTOMER EXPERIENCE QLIRO NPS CUSTOMER & MERCHANT SATISFACTION 50 96% 45 94% 40 35 92% 92% 30 90% 25 20 88% 15 86% 10 5 84% 0 82% Sep Sep Sep Sep Jul Jul Jul Jul Nov Nov Nov Nov Mar Mar Mar Mar Jan Jan Jan Jan May May May May JAN FEB MAR APR MAY JUN JUL AUG SEP OKT NOV DEC 2020 2021 2022 202
Slide 13: Building a Profitable & Scalable Payments Company
BUILDING A PROFITABLE & SCALABLE PAYMENTS COMPANY STRATEGIC OBJECTIVES VALUE DRIVERS SUCCESS INDICATORS OPERATIONAL SCALABILITY COST TO SERVE Profitable #1 full year 2023 PROFITABLE CREDIT INTELLIGENCE CREDIT LOSSES GROWTH TECHNOLOGY EFFICENCY RUNNING COSTS VALUE PROPOSITION WIN RATIO #2 BUILDING AC
Slide 14: Financial Update
FINANCIAL UPDATE Qliro 14
Slide 15: Continued Growth and Profitability in Q4 2023
CONTINUED GROWTH AND PROFITABILITY IN Q4 2023 Key financial highlights Income development Operating costs • Total operating income growth of 9 percent to SEK 116.4 +9.4% -41.6m million, primary driven by an increased interest in Qliro’s 106.4 106.9 112.6 112.6 116.4 116.0 payment products. 80.1 82.5
Slide 16: Decreased Cost Base Drove Continued Profitability in Q4 2023
DECREASED COST BASE DROVE CONTINUED PROFITABILITY IN Q4 2023 Comments Cost development excl. IAC • A lower cost base has been crucial to achieving our financial target of a positive operating profit for the 98 full year 2023. 22 80 82 • Investments in automation, 79 74 efficiency and digitalization
Slide 17: Payment Solutions – Q4 Performance [I/II]
PAYMENT SOLUTIONS – Q4 PERFORMANCE [I/II] Share of income 85% Operational KPI’s Financial KPI’s No. of active merchants Total Payments Volume, SEKbn BNPL Volumes, SEKbn Income development, SEKm BNPL is our most profitable part of the Pay Later volumes given that the invoice volumes have limited fees
Slide 18: Payment Solutions – Q4 Performance [II/II]
PAYMENT SOLUTIONS – Q4 PERFORMANCE [II/II] Share of income 85% Comments COMMENTSonON Q4Q1 Performance PERFORMANCE Financial KPI’s Income development, SEKm ü Expanded agreement with Nelly Group for Pay Now volumes, 11%, YoY totaling SEK 500 million annually. 98.6 93.5 94.0 ü The agreements with Nelly
Slide 19: Digital Banking - Stabilising Loan Balance and Increasing Margin
DIGITAL BANKING - STABILISING LOAN BALANCE AND INCREASING MARGIN 15% Share of income Comments COMMENTSonON Q4Q1 Performance PERFORMANCE Financial KPI’s Loan Balance, SEKm Income development, SEKm • Operating income increased with 1% to SEK 17.8m -10%, YoY 1%, (17.6) 879 19.0 855 829 17.6 18.5 18.6 1
Slide 20: Capital and Liquidity
CAPITAL AND LIQUIDITY Comments Capitalization Financing mix • Capital headroom of 5,7% +5,7% or 143m towards (143m) regulatory requirement 19,6% 2,8% • Solid liquidity position with an LCR 4,1% above 508% and NSFR above 13,6% 126% 0,0% 13,9% • Lending to the public primarily 2,4% financed through de
Slide 21: Outlook
OUTLOOK Qliro 21
Slide 22: Looking Ahead
LOOKING AHEAD Growth and profitability initiatives within Payment Solutions • Near-term focus includes expanded Unified Payments offering and intensifying sales and marketing efforts. • Continued expansion within both SME and Enterprise. • Currently in discussions with more new merchants than ever,
Slide 23: Q&A
Q&A Qliro 23
Slide 24: IR@qliro.com
QLIRO SAFE AND SIMPLE IR@QLIRO.COM