Qliro Ab · OMXSTO:QLIRO
Qliro Ab — Q2 2024 Earnings Presentation
28 slides from Qliro Ab's earnings presentation, Jul 17, 2024
Slide 1: Q2 2024 Presentation
Q2 2024 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: Double down on payments transformation
DOUBLE DOWN ON PAYMENTS TRANSFORMATION: 1 DELIVER A WORLD-LEADING EXPERIENCE FOR MERCHANTS, AND THEIR CUSTOMER JOURNEY 2 DIVESTMENT OF THE ASSETS IN DIGITAL BANKING SERVICES 3 BUILDING ACCELERATED GROWTH MOMENTUM IN PAYMENTS 4 LAUNCHED COMPOSABLE PAYMENTS PRODUCT STRATEGY 5 LAUNCHING OUR SALES OFFIC
Slide 6: Deliver a world-leading experience for merchants and their customer journey
1 DOUBLE DOWN ON PAYMENTS TRANSFORMATION: DELIVER A WORLD-LEADING EXPERIENCE FOR MERCHANTS, AND THEIR CUSTOMER JOURNEY CONFIDENTIAL 6
Slide 7: Payments transformation the key driver to profitability
1 PAYMENTS TRANSFORMATION THE KEY DRIVER TO PROFITABILITY PAYMENTS SOLUTIONS: FINANCIAL OVERVIEW OF BUSINESS SEGMENT Growth Focus Profitability focus Scalable Growth focus 2022 2023 2024 2025 Figures in mSEK CAGR +10% Payments key driver in Qliro’s transformation Operating Income 98.6 99.2 101.2 93.
Slide 8: >30% of Pay Now volumes processed in Unified Payments
1 >30% OF PAY NOW VOLUMES PROCESSED IN UNIFIED PAYMENTS DOUBLE DOWN ON PAYMENTS TRANSFORMATION QLIRO UNIFIED PAYMENTS ONE AGREEMENT QLIRO BANK MERCHANT BANK ACCOUNT ACCOUNT ONE ONBOARDING ONE PAYOUT AND REPORT Unified Payments Volumes (% of total Pay Now Volumes) ONE POINT OF CONTACT Benefits for Ql
Slide 9: Significantly increased payment platform performance
1 SIGNIFICANTLY INCREASED PAYMENT PLATFORM PERFORMANCE DOUBLE DOWN ON PAYMENTS TRANSFORMATION QLIRO PLATFORM UPTIME 2020 2021 2021 2023 2024 100,0% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 99,99% 99,99% 99,98% 99,96% 99,95% 99,95% 99,9% 99,94% 99,89% 99,8% 99,7
Slide 10: Increasing Qliro app usage for consumer payments
1 70% 55% 75% 80% 60% 50% 65% 2021-01 2021-02 2021-03 2021-04 2021-05 2021-06 2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 DOUBLE DOWN ON PAYMENTS TRANSFORMATION 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 App payments (bnpl, account) 2022-07 2022-08 2022-09 2022-10 2022-11 2022-12 2023-01 20
Slide 11: Increased consumer rating on Trustpilot
2024-07-17 11 1 INCREASED CONSUMER RATING ON TRUSTPILOT DOUBLE DOWN ON PAYMENTS TRANSFORMATION CAIA 294 KR CAIA 294 KR CUSTOMER SERVICE QLIRO APP PERSONALIZED COMMUNICATION § Local & human support § Sweden’s 2nd most § E-mail § Local language for all downloaded financial app § Push notifications § S
Slide 12: Increased focus on payment solutions through divestment of digital banking services
2 INCREASED FOCUS ON PAYMENT SOLUTIONS THROUGH DIVESTMENT OF THE ASSETS IN DIGITAL BANKING SERVICES About the transaction Payment Solutions (remaining operations) Digital Banking Services (divested assets) • Divestment of the company’s personal loans portfolio for a purchase Income development Incom
Slide 13: Building accelerated growth momentum in payments
3 BUILDING ACCELERATED GROWTH MOMENTUM IN PAYMENTS SIGNIFICANT MERCHANT BASE GROWTH IN H1 2024 EXPANDED SALES CAPACITY YIELDS RESULTS +114% • Prolonged & expanded collaboration with existing merchant CDON –including CDONs wholly owned subsidiary Fyndiq (TPV of SEK >600 m) with expected go live early
Slide 14: SME growth taking off
3 10 0 40 20 30 2022-10 2022-11 2022-12 2023-01 2023-02 2023-03 2023-04 2023-05 2023-06 2023-07 2023-08 2023-09 2023-10 2023-11 2023-12 2024-01 NEW MERCHANTS PER MONTH 2024-02 2024-03 2024-04 2024-05 m aj -2 3 ju ni -2 3 ju l i- 23 au g- 23 se p- 23 ok t- 23 no v- 23 de c- 23 ONBOARDING >1 MERCHANT
Slide 15: Launched composable payments product strategy
4 LAUNCHED COMPOSABLE PAYMENTS PRODUCT STRATEGY QLIRO ANNUAL E-COM SUMMIT MAY 2024 ~200 MERCHANTS & PARTNERS Moderna Museet, Sthlm COMPOSABLE PAYMENTS FOR GROWTH: WITH FLEXIBLE MODULES, MERCHANTS CAN COMPOSE THE SOLUTION DEPENDING ON THEIR TECH STACK 2024-07-17 15
Slide 16: Opening our sales office in Norway in Q3
5 OPENING OUR SALES OFFICE IN NORWAY IN Q3 COUNTRY MANAGER WITH EXPERIENCE FROM SEVERAL COMPETITORS STARTING 1 AUG QLIRO PRODUCT OFFERING ALREADY AVAILABLE IN NORWAY, WITH >15% OF OUR VOLUME EXPANDING COMMERCIAL TEAM TO NORWAY INCREASE OUR ADDRESSABLE MARKET >+50% SIMILAR MARKET DYNAMICS IN NORWAY A
Slide 17: Summary first half of 2024
SUMMARY FIRST HALF OF 2024 • QLIRO DOUBLE DOWN ON OUR PAYMENTS TRANSFORMATION • SIGNIFICANT GROWTH MOMENTUM IN PAYMENTS STARTING TO MATERIALIZE • ROBUST MERCHANT BASE GROWTH, LAYING THE FOUNDATION FOR LONG-TERM GROWTH AND PROFITABILITY • DIVESTING DIGITAL BANKING SERVICES ALIGNS WITH QLIRO'S STRATEG
Slide 18: Financial Update
FINANCIAL UPDATE Qliro 18
Slide 19: Continued growth and profitability in Q2 2024
CONTINUED GROWTH AND PROFITABILITY IN Q2 2024 Key financial highlights Income development Operating costs • Total operating income growth of 4 percent to SEK 117.1 4% (+5m) million, primary driven by an increased interest in Qliro’s 112.6 112.6 116.4 115.8 117.1 -0.1m payment products. 82.5 82.4 81.
Slide 20: Stable cost base contributed to continued profitability in Q2'24
STABLE COST BASE CONTRIBUTED TO CONTINUED PROFITABILITY IN Q2’24 Comments Cost development excl. IAC • Stable cost base compared to Q2 last year. 82 82 • Increased costs compared to Q1 79 79 due to expansion within Payment 74 18 17 Solutions. 18 17 19 • Q4 2023 outlier given one-time 19 15 effects i
Slide 21: Payment Solutions – Q2 performance [I/II]
PAYMENT SOLUTIONS – Q2 PERFORMANCE [I/II] Share of income 86% 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 22: Payment Solutions – Q2 performance [II/II]
PAYMENT SOLUTIONS – Q2 PERFORMANCE [II/II] Share of income 86% Comments COMMENTSonON Q2Q1 Performance PERFORMANCE Financial KPI’s Income development, SEKm • Operating income increased by 8% to SEK 101.2 million (93.6), driven 8%, YoY by increased interest in Qliro's payment products. 101.2 98.6 99.2
Slide 23: Digital Banking – Q2 performance
DIGITAL BANKING – Q2 PERFORMANCE 14% Share of income Comments COMMENTSonON Q2Q1 Performance PERFORMANCE Financial KPI’s Loan Balance, SEKm Income development, SEKm • Operating income decreased with 16% to SEK 15.9m -9%, YoY -16%, (19.0) due to due to lower new loan volumes. 816 19.0 782 774 760 18.6
Slide 24: Capital and liquidity
CAPITAL AND LIQUIDITY Comments Capitalization Financing mix • Capital headroom of 6.1% +6.1% or 147m towards (147m) regulatory requirement 19.8 3.0% • Solid liquidity position with an LCR 4.2 of 223% and NSFR of 126% 14.8% • Lending to the public primarily 13.7 financed through deposits in 2.3 Swede
Slide 25: Outlook
OUTLOOK Qliro 25
Slide 26: Looking ahead - acceleration
LOOKING AHEAD - ACCELERATION 1 ACCELERATE OUR SME SALES ENGINE 2 EXECUTE ON THE STRONG ENTERPRISE SALES PIPELINE 3 CONTINUED TO INVEST IN OUR PAYMENT CAPABILITIES 4 EXPAND ADDRESSABLE MARKET BY LAUNCH IN NORWAY 5 CONTINUE TO OPTIMIZE ONBOARDING TO HANDLE INFLOW DELIVER A MARKET LEADING EXPERIENCE FO
Slide 27: Q&A
Q&A Qliro 27
Slide 28: IR@QLIRO.COM
QLIRO SAFE AND SIMPLE IR@QLIRO.COM