Slide 1: Full year results presentation FY22
Full year results presentation FY22 Money Without Borders June 2022
Slide 2: Agenda for the call
Agenda for the call 1 Progress against our mission Kristo Käärmann (CEO and Co-founder) 2 Our FY22 financials Matthew Briers (CFO) 3 Q&A 2
Slide 3: Our mission
Our mission. Money without borders - instant, convenient, transparent and eventually free. Powering money for people and businesses: to pay, to get paid, to spend, in any currency, wherever you are, whatever you’re doing. 3
Slide 4: Wise: Growing at scale, and profitable
>70 0.61% 49% Countries connected, Average price Transfers are Instant customers can send for customers in Q4 88% within 24 hours money to Wise: Growing at >13M 71 66% scale, and Customers around the world Net Promoter Score Customers join through word of mouth profitable. +40% +33% Volume Revenue £7
Slide 5: Progress against our mission
1 Progress against our mission.
Slide 6: Moving money internationally is broken
TRADITIONAL BANKS Expensive 3-7% avg. fee1 Moving money internationally is Slow Up to 2-5 business days broken. Inconvenient Long, unfriendly CX Opaque Less transparent with their rates with only 4%2 of bank respondents identifying the true cost Source: 2022 Edgar, Dunn & Company (“EDC”) Market Stud
Slide 7: This problem persists in two massive markets
This problems persists in two massive markets Personal X-border volume SMB X-border volume £2tn+ £9tn+ And we still have a long way to go… <4% <1% Wise Personal Market Wise Business Market Share Share 7
Slide 8: Now our speeds are faster than ever
Now our speeds 88% arrive in 24 hours are faster than 65% arrive in 1 hour ever. 49% arrive instantly FY19 FY20 FY21 FY22 Source: Internal company data. 8
Slide 9: And we lowered fees for 2.5 million of our customers
Average customer price (%) And we lowered fees for 2.5 million of our customers. Note: Average price eliminates route mix variance by tracking fees on a fixed representative basket of transactions. 9 .
Slide 10: We are saving customers money globally
We are saving customers money globally. Better banking commercials in the Nordics Optimised our We launched our safeguarding debit card in Canada! & business multi-currency accounts in Japan Digital cards for US based businesses Business send to China and partnering with Local market Weixin (WeChat)
Slide 11: But international banking needs fixing too
Problems. Sending money It is slow, it is expensive across borders and it is hard to do. But international International International bank banking needs accounts do not really banking exist. fixing too. Infrastructure is antiquated Underlying and has not evolved in technology decades. Currently >280
Slide 12: We now have 3 products to serve this massive market
We now have 3 products to serve this massive market. 12
Slide 13: Wise Account, Wise Business, Wise Platform
Wise Account Wise Business Wise Platform 13
Slide 14: Wise Account
Wise Account Send Spend Receive Hold & Money Anywhere income Convert Building the world’s most international account for people. 14
Slide 15: Wise Account launched in Brazil and Malaysia
Wise Account … launched in Brazil and Malaysia. 15
Slide 16: New Wise Account features
Assets: invest in MSCI World Index, instant access to funds, grow your money Wise Account Scheduled payments: set automated recurring payments to send money, and pay bills abroad without needing to top-up each time We’ve added new features that our Auto-convert: set your currencies and desired rate
Slide 17: Customers using Wise for more than Send
% of customers who use Wise for more than Send1 Wise Account 2x more volume It’s working: Our customers are using us for more than sending money. Note: (1) % of total active customers who have adopted more than 1 product in markets where the Wise Account and Card are available (Europe, United Kingdo
Slide 18: Our business customers move more money
Wise Business Personal Business Customers Customers Our business Engagement1 ✓✓ ✓✓✓ customers move Volume per more money. customer £8k £48k Revenue per customer £62 £309 LTV ✓✓ ✓✓✓ Source: Internal company data as of FY22. Notes: 1Engagement is based on Active Rate. 18
Slide 19: Wise Business
Pay international Manage employee Get paid like a invoices spending with local business cards Wise Business Building the world’s Control account access for team most international members account for businesses. Synchronise activity & bills with accounting software What’s next? ● Increased transfer
Slide 20: Enriching our product strengthens the customer relationship
Wise Business Cohort Volumes (£b) Wise Business Enriching our product strengthens the customer relationship. 20
Slide 21: Customers are holding more deposits with us
Wise total deposit balances (£bn)1 84% YoY 85% YoY Customers are holding more deposits with us. Notes: 1includes account deposits for both Wise Account and Wise Business customers. 21
Slide 22: Wise Platform
Wise Platform NeoBanks Traditional Banks Enterprises The magic of Wise integrated into Enhance their Transforming to Expand to payments offering compete enterprises and banks. 22
Slide 23: Wise Platform is attracting traditional and high tech partners
Wise Platform is attracting both traditional and high tech partners Wise Platform ...across borders. ���� �� �� �� �� �� 23 Note: Incremental partners in FY22
Slide 24: Scaling up can be hard, and we're building our teams
● We are currently onboarding c.1 million customers every quarter and scaling our operations teams to support this Scaling up can ● We grew our team by c.950 Wisers in be hard, and FY22 and are actively hiring so that we we’re building have the right size and quality of teams our teams. ● These will
Slide 25: We are redefining expectations
We are redefining expectations. 1 in 2 transfers instant Sustainable cost Low cost and At scale greater than reductions supported by Global KYC/AML capability Transparent largest incumbent reinvestment of profits Incumbent Digital Decentralized Banks payment challengers clearing providers 25
Slide 26: There is still more to build to serve our customers everywhere
Wise reach by number of countries There is still more > to build to serve our customers everywhere. 26
Slide 27: Our products are working
Our products are working... Our Products... drive high advocacy... more active customers... and greater scale. Account 71 24% £76bn NPS1 YoY personal Volume4 customer growth3 Business 66% 34% 40% WoM2 YoY business YoY Volume4 growth Platform customer growth3 Source: Internal company data. Note: 1 Ne
Slide 28: Our FY22 Financials
7wise © Our FY22 Financials.
Slide 29: Our growth and profitability allows us to reinvest for the long-term
Our growth and profitability allows us to reinvest for the long-term. £76bn £560m £372m £121m Volume. Revenue. Gross profit. Adj. EBITDA +40% y/y +33% y/y +43% y/y 22% margin £113m Free cash flow 93% of Adj. EBITDA 29
Slide 30: More and more Personal and Business customers use us every quarter
Active customers (m) - Personal 28% 22% 26% 29% YoY More and more Personal and Business customers use us Active customers (m) - Business 56% 44% 39% 36% YoY every quarter. Note: Active customer defined as a customer who has completed a cross currency transaction in a given time period. 30
Slide 31: Volume per customer increased this year too
Volume per customer (£’000) - Personal 18% 6% 4% 3% YoY Volume per customer increased Volume per customer (£’000) - Business this year too. 6% 9% 13% 15% YoY Note: Volume per customer defined as the average quarterly transaction volume of active customers per quarter. 31
Slide 32: Strong momentum on volume growth in second half
Volume (£bn) - Personal 50% 30% 32% 32% YoY Strong momentum on volume growth in second half. Volume (£bn) - Business 66% 57% 58% 54% YoY 32
Slide 33: Volume grew 40% YoY
Total volume (£bn) 40% YoY 30% YoY YoY Volume grew 40% Business 59% YoY. Personal 35% 33% 46% Constant currency growth1 YoY YoY Notes: 1 Prior periods calculated using the FY22 average rate. 33
Slide 34: We made great progress in reducing our unit cost of sales
Cost of sales as a function of volume (%) We made great Net credit losses on financial assets progress in Net foreign exchange loss and reducing our unit other product costs cost of sales. Bank and partner fees 34
Slide 35: We reinvested this to improve our proposition
Average customer price (%) We reinvested this to improve our proposition; enabling lower prices for customers. Note: Average price eliminates route mix variance by tracking fees on a fixed representative basket of transactions. 35
Slide 36: Customers using the Account drove an increase in other fees
Take rate (%) Customers using the Account drove an increase in Total take rate Cross-currency take rate other fees … supporting overall Other fees take rate. Note: Other fees refers to revenue from non cross volumes for example same currency transactions and interchange fees. 36
Slide 37: Revenue grew 33% YoY
Revenue (£m) 33% YoY Revenue grew 39% YoY YoY Business 59% 33% YoY. Personal 27% 37
Slide 38: Growth in all regions, with UK still growing at 30%
Revenue by Region (£m) YoY 2,248 Growth in all 18% RoW 2,059 40% APAC regions, with UK 1,472 30% N. America still growing at 30% 30% y/y. 36% Europe 38 Note: “RoW” refers to rest of world.
Slide 39: Gross profit grew ahead of volume
Gross profit (£m) £372m FY22 Gross profit. Gross profit grew ahead of volume. +43% y/y 62% 66% FY21 Gross profit FY22 Gross profit margin margin 39
Slide 40: How we invest in our growth
Our investment choices Enhanced Increases customer Resulting in a volume and experience lower unit cost scale ++ Customers Invest in marketing How we invest in our growth. Invest in ++ product & Features tech Invest in sustainably lowering price Wise reinvests back into the business in 3 major ways
Slide 41: Growing Wise involves reinvestment for the long-term
Administrative Expenses1 and Other Operating Expenses (£m) Growing Wise YoY 49% Other operating involves YoY 100% expenses Other admin 325% expenses2 25% reinvestment Consultancy & 61% YoY outsourced services2 Technology & for the 26% development Marketing2 29% long-term. Employee benefit 38% expense
Slide 42: Our mission is now supported by almost 3,400 Wisers
Number of Wisers1 2,059 2,248 +40% YoY Our mission is +14% YoY 1,472 now supported by almost 3,400 Wisers. 1,881 2,243 2,919 Average Notes: 1Employee (Wiser) headcount at the end of each financial year. 42
Slide 43: We have increased our investment in marketing
We have £28.2m FY22 marketing investment increased our investment in +30% y/y marketing … but word of mouth continues to grow: 66% of new customers are still referred. 43
Slide 44: Higher expense growth is in part driven by lower capitalisation
Administrative1 and Other Operating Expenses (£m)1 65% YoY Higher expense 24% YoY Other operating expenses N/A2 growth is in part Administrative 46% expenses1 driven by lower capitalisation. Capitalised intangibles (76)% 0 £25 £66 £115 Notes: 1Administrative Expenses adjusted for D&A, SBC and except
Slide 45: We're sustaining Adjusted EBITDA margin at or above 20%
Adjusted EBITDA (£m) Margin (%) 23% 26% 22% We’re sustaining 12% Adjusted EBITDA YoY 60% YoY margin at or above 20%... 45
Slide 46: Adjusted EBITDA and capitalisation add-back
Revenue Adj. Capit- Adj. EBITDA: EBITDA alisation … add back capitalisation FY22 £560m £121m £(5)m £117m +33% +12% +31% FY21 £421m £109m £(20)m £89m 46
Slide 47: Our growth and profitability allows us to reinvest for the long-term
Our growth and profitability allows us to reinvest for the long-term. £76bn £560m £372m £121m Volume. Revenue. Gross profit. Adj. EBITDA +40% y/y +33% y/y +43% y/y 22% margin £113m Free cash flow 93% of Adj. EBITDA 47
Slide 48: Guidance
Guidance. Revenue 30-35% >20% Growth in FY23 Medium-term growth (CAGR) Adjusted EBITDA margin Maintained at or above 20% over the medium-term 48
Slide 49: Onwards
7wise © Onwards.
Slide 50: In summary...
Massive, Superior growing product In summary... opportunity Focused on Sustainable long-term financial growth model 50
Slide 51: Wise
7Wwise
Slide 52: Disclaimer
Disclaimer This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Wise Group (the “Group”). This presentation may include fo