Qliro Ab · OMXSTO:QLIRO
Qliro Ab — Q3 2020 Earnings Presentation
19 slides from Qliro Ab's earnings presentation, Oct 21, 2020
Slide 1: Qliro Q3 2020 presentation
Qliro Q3 2020 presentation CEO Carolina Brandtman and CFO Robert Stambro 21 October 2020
Slide 2: 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 3: 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 4: 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 5: 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 6: Q3 Highlights
Q3 HIGHLIGHTS QLIRO
Slide 7: Nasdaq listing – 2nd of October
NASDAQ LISTING – 2ND OF OCTOBER HIGHLIGHTS 7
Slide 8: 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% 8
Slide 9: 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 9
Slide 10: 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 11: 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 11
Slide 12: 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 13: 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 14: 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 63 62 62 56 ⚫ Depreciations on a s
Slide 15: 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 16: 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 17: 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 met
Slide 18: Focus
Commercial execution - peak quarter Improve customer experience Continued focus on credit quality FOCUS Cost control Income growth to exceed cost growth 18
Slide 19: Qliro
QLIRO