Loomis : Pay - presentation slides

Expanding across the value chain - Launching

Loomis Pay

2020-09-09

We are in a strong position to expand across the value chain…

20.4 23

bn SEK R12 revenueCountries with leading positions

25,000		40,000
Employees		Installed SafePoints
		globally

Rolling 12 months EBITA growth FX adjusted

3 000	EBITA	200%
+144%

M	2 500
SEK																											150%
adjusted,	2 000
1 500																												100%
FX
EBITA	1 000
																										50%
	500
	0																												0%
		Q4		Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2	Q4	Q2
		2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

% improvement

2

…building on our strong financial position and our strategy

Market maturity

New

payment solutions

ATM

FX

Solutions

Safe

Point

CIT CMS

VIT

EBITA margin

Well positioned to expand our offering

• Necessary technology and competence in place
• • Innovation Centre ready since 2018
  • Acquisition of GoAppified
  • Recruitment of management team
• Strong relationship with merchants
• Clear synergies and customer value combining cash and digital - unique full-service solution
• Seize growth opportunities & expand market
• 70% of all transactions within the EUR area are made with cash representing around 40% of the value 1)
• Value of EUR notes in circulation grows by approx. 5% 1)

1. ECB

3

We will significantly increase our market potential…

• Adding a new market potential: 1 trillion USD revenues generated in non-cash payments with merchants, half of which in existing Loomis markets and forecasted to grow by a CAGR of 6%
• Starting in the Nordics
• • Total non-cash payments for goods and services 3,600 SEKbn, ~30% web, 70% in-store
• SME segment in the Nordics
• • Representing approx 33% of the transacted volume but >50% of the revenue generated to payments services providers
  • >10 SEKbn revenue potential accessible to a payment facilitator in the Nordic SME non-cash payments market alone (omni channel)

Global payment revenue, merchant	Global number of non-cash
(USD trillion)			transactions, (~700 billion 2019)
		1.8
		CAGR:
1.1	6%		Nordics
		Europe
				North America
				LatAm
				Rest of world
2019	2028
Source: BCG Global Payments 2019 report	Source: Cap Gemini World Payments Report 2019

Nordic non-cash payments volume (SEKbn)

1. 000

1. 000

1. 000

1. 000

1. 000
   0

2018	2019	2020	2021	2022
	E-commerce	In-store digital

Source: Nordic National Banks

4

…by launching a new complete payment solution

12

One solution for all	Launch in Denmark in Q4
payments - Cash, Card	and rest of the Nordics in
and Digital, In-store and	2021
e-commerce
Well positioned to expand	Thereafter other Loomis
across the value chain whilst	countries. Expected positive
keeping cash at our core	operating profit 2023

3

An initial target of SEK 3 bn revenue within 5 years

With attractive margins

5

A complete one contract payment solution for merchants

6

Merchants face an increasingly complex payment landscape…

Growing number of transaction types, service providers and contracts needed

Bank /

Local Payment

Credit

3rd party

Cash register /

Cash

Options

Financing /

Gift, Loyalty &

resellers /

Card payments

Acquirer

POS

management

(Swish,

Buy Now Pay

Club cards

delivery

contract

Vipps etc)

Later

services

7

…which impacts their top- and bottom line

Implications of multiple providers & contracts

Several settlements

Several contracts

Different data sources

Multiple systems

to integrate

Instore & e-commerce

detached

Lost business opportunities

Errors, inefficient financial processes, poorer liquidity

Time consuming with several suppliers & higher total cost

No holistic overview - impacting business decisions on pricing, staffing etc

Costly and slow

Costly admin & two separate customer experiences

Lower conversion of customers online & instore - not benefiting from a bigger overview

8

Loomis Pay is a complete solution primarily for SME merchants…

Today	Tomorrow	One contract
Merchant	Merchant

One contact

One settlement

All payments

9

…providing an integrated solution for multiple payment methods

Online

Digital in store

Cash in store

Payment method agnostic	Merchant frontend	Gateway	Acquirer	Merchant's Bank account
Loomis Pay provides full flexibility	Loomis Pay provides a flexible	A multiple acquirer solution routing	Our solution is acquirer agnostic	Loomis Pay, as payfac, bundles
	range of frontend devices	payments to many different	and transactions will be routed to	and settles the pay-out to the
		certified acquirers	the most suitable	merchants' bank account for all
				payment methods

10

Loomis Pay - leveraging Loomis unique strengths

85,000	+25,000	40,000
Existing merchant clients	Employees in	Installed SafePoints
in the Nordics alone	the field globally	globally

>500,000 merchants as	>1,000 client facing employees and	The rollout of SafePoint taught us there
clients globally	2,3 million client interactions per year	is appetite for new solutions from
	in the Nordics	Loomis

12

Management in place with experience in fintech, payments and retail

Managing Director	CPO	CFO
Kristoffer Labuc	Anders Färdigh	Nils P. Lossius
Experience from:	Experience from:	Experience from:
Klarna	Bambora, Ingenico	Swedbank Payex, Lindorff
McDonalds etc
CMO	COO	Head of Risk
Kristoffer Wadman	Michael Pickett	Erik Ankersjö
Experience from:	Experience from:	Experience from:
Loomis	Catella Bank, Swedbank	Entercard, Swedbank
Assa Abloy etc

13

Launching first in the Nordics and then rolling out to additional Loomis markets

Denmark during	Sweden, Norway and	Other Loomis
Q4 2020	Finland 2021	countries 2022-

An initial target of SEK 3 bn revenue within 5 years with attractive margins

Loomis Pay is expected to generate positive operating profit by 2023

During 2020-2022 further investments will be made in product development and other activities for Loomis Pay, with a net cost effect of SEK 100 m per year

14

Q&A