Qliro AB: Year-end report 2021

Increased income and improved profit when excluding items affecting comparability

Important events in the fourth quarter 2021
• The company communicated that Carolina Brandtman were to resign as CEO
• Items affecting comparability of 6.8 MSEK in costs where recognized during the quarter related to severance pay for the CEO and others and recruitment costs for a new CEO and Chairman
• Strong development of payment volumes in Norway. Volume with Qliro’s pay-after-delivery products (“PAD”) increased with more than 50 percent

Events after the period
• Jonas Arlebäck was appointed as acting CEO as of 1st of February
• The E-retailer Stronger started to use Qliro’s payment solutions
• Qliro entered into a partnership with the e-commerce platform Centra

October– December 2021 (October – December 2020)
• Total operating income increased by 6 percent to SEK 106.1 million (99.8).
• Total operating expenses increased by 11 percent to SEK 101.0 million (90.7), adjusted for items affecting comparability costs increased with 4 percent to 94.1 MSEK (90.7)
• Credit losses decreased with 10 percent to a net of SEK 23.6 million (26.3)
• Operating profit decreased with 7 percent to SEK -18.4 (-17.2), adjusted for items affecting comparability the operating profit improved with 32 percent to -11.6 MSEK (-17.2)
• Net profit for the period improved with 3 percent to SEK -15.1 million (-15.5) and earnings per share amounted to SEK -0.84 (-0.86). Net profit adjusted for items affecting comparability improved with 38 percent to -9.6 MSEK (-15.5)

January – December 2021 (January – December 2020)
• Total operating income increased by 6 percent to SEK 403.5 million (379.7). Total operating income adjusted for items affecting comparability increased by 4 percent to SEK 403.5 million (388.1)
• Total operating expenses increased by 3 percent to SEK 369.9 million (358.3). Adjusted for items affecting comparability, expenses increased by 6 percent to SEK 363.1 million (342.7)
• Credit losses decreased with 20 percent to a net of SEK 81.9 million (102.5)
• Operating profit improved with 40 percent to SEK -48.3 million (-81.1). Operating profit adjusted for items affecting comparability improved with 27 percent to SEK -41.5 million (-57.1)
• Net profit for the period was improved with 40 percent to SEK -39.9 million (-67.0) and earnings per share amounted to SEK -2.22 (-2.86). Net profit for the period adjusted for items affecting comparability was improved with 28 percent to SEK -34.4 million (-48.1)

Comment from Jonas Arlebäck acting CEO Qliro
 
New merchant and platform collaborations
The improvements of the offer and processes to broaden the payment offering to SME-merchants has continued and the sales processes towards new merchants has started. During the quarter agreements with two merchants within the segment was signed. One of the merchants went live with our services at the end of the quarter and the other went live early 2022. It is positive that we already in the startup phase has generated new customers and that the integration time for new merchants has shortened substantially.

Within the large merchant segment, the fashion company Stronger started to use our services during January.
Stronger is one of many strong brands which use Centra as their e-com platform. In the beginning of 2022, we
agreed on a partnership with Centra which will enable more merchants that use Centra to become partners to us.

Safe payments and responsible lending
Qliro strives to be a responsible and safe partner for payments in e-commerce. In early 2022 we introduced a
functionality in our popular digital channelse that allows for consumers to enable Bank ID to always be
triggered when they do e-commerce purchases.

One area that Qliro has focused a lot on is to have good processes for making credit assessments and improved reminder features for consumers. Share of late payments have therefore developed positively and credit qualitystrengthened. As a receipt of that, a new agreement
regarding sales of non-performing credits in Sweden. Was agreed with improved terms.

Comment on the fourth quarter result
Growth of payment volumes continued, +7 percent, although December showed slower growth because a larger share of Christmas shopping toke place in-store than in 2020. The strongest development was in Norway where volumes grew with 53 percent as Qliro has started cooperation with new merchants with a larger share of their sales in Norway during the year but also due to stronger growth for “older” merchants in Norway,

Income grew with 6 percent while costs excluding items affecting comparability increased by 4 percent. In comparison to previous years the margin within payment solutions declined due to new regulations but also improved customer features that lowered reminder income. Positive during the quarter was that our main segment Payment Solutions showed income growth of 4 percent.

During the year the credit quality has been strong and during the quarter credit losses was 10 per cent lower, than the fourth quarter 2020, although volumes and lending increased.

Operating profit excluding items affecting comparability improved to SEK -11.6 million (-17.2).

Strategy for growth and towards profitability
In my previous roles at Lowell, I have been impressed by Qliro in the interactions and collaborations we have had. I’m happy and grateful for the confidence to lead Qliro and now I look forward to getting to know the organization better. My assignment as acting CEO is to deliver on the company’s growth strategy.

The strategy is focused around being the best payment partner for e-merchants. The widening of the customer offering in Sweden to SME merchants has started. Over time, revenues will be generated
from more payment methods and through the broadened offer the revenues will to a larger extent come from both merchants and consumers.

We at Qliro shall be a responsive and present partner which offers a high-class service experience to our merchants and their customers. Together with the commercial team at Qliro I look forward to engaging in dialogues with potential new customers and partners and to nurture existing relationships. Qliro grows steadily by adding new partners, but the pace needs to be further increased going forward.

We will soon invite investors and other external stakeholders to a strategy presentation. The presentation will
take place during the second half of March. I look forward to get the chance to introduce myself and Qliro closer then..

Presentation of the report
Media, analysts and investors are invited to a conference call on the 8th of February at 10 am
when acting CEO Jonas Arlebäck and CFO Robert Stambro will present the results.
After the presentation there will be a Q&A session:

Phonenumbers:
Sweden: [phone]
UK: [phone]
US: [phone]
Link to the webcast: https://tv.streamfabriken.com/qliro-q4-2021
You can also find the presentation on: qliro.com/sv-se/investor-relations/presentationer

For further information, please contact:

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Andreas Frid, Head of Investor Relations 
Phone: [phone]
E-mail: [e-mail]

About Qliro AB

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Founded in 2014, Qliro is a tech company offering flexible payment solutions for e-commerce merchants in the Nordics and digital financial services to consumers in Sweden. Since inception 2014, Qliro has grown quickly and in the last year 2.5 million customers have used Qliros services and business volumes with Qliros payment products exceeded SEK 7.1 billion. The largest owners are Rite Ventures with 26% ownership and Mandatum Private Equity (Sampo owned company) with 10 % ownership.

Qliro is listed on Nasdaq Stockholm since October 2020 with the ticker “Qliro”. Qliro has its registered address in Stockholm and is a credit market company under supervision of the Swedish Financial Supervisory Authority (FI). For more information see https://www.qliro.com/en/investor-relations

This information is information that Qliro AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-02-08 07:30 CET.

Attachments

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Year End Report 2021 Qliro

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