Important events during the third quarter
• 12 percent increase in pay-after-delivery volumes and 16 percent lending growth
• Qliro stopped e-mail marketing of private loans

Events after the period
• As a first step in broadening the product range to include medium-sized merchants Qliro began a collaboration with Wikinggruppen, one of Sweden’s largest e-commerce platforms

July– September 2021 (July – September 2020)
• Total operating income increased by 4 percent to SEK 100.5 million (97.1).
• Total operating expenses increased by 10 percent to SEK 91.4 million (83.3).
• Credit losses decreased with 19 per cent to a net of SEK 18.9 million (23.3)
• Operating profit decreased with 2 percent to SEK -9.7 (-9.5)
• Net profit for the period improved with 6 percent to SEK -8.1 million (-8.6) and earnings per share amounted to SEK -0.45 (-0.48)

January – September 2021 (January – September 2020)
• Total operating income increased by 6 percent to SEK 297.4 million (279.9). Total operating income
adjusted for items affecting comparability increased by 3 percent to SEK 297.4 million (288.3)
• Total operating expenses increased by 1 percent to SEK 268.9 million (267.6). Adjusted for items
affecting comparability, expenses increased by 7 percent to SEK 268.9 million (252.0)
• Credit losses decreased with 24 per cent to a net of SEK 58.3 million (76.3)
• Operating profit improve with 53 per cent to SEK -29.8 million (-63.9). Operating profit adjusted for
items affecting comparability improved with 25 per cent to SEK -29.8 million (-39.9)
• Net profit for the period was improved with 52 per cent to SEK -24.8 million (-51.4) and earnings
per share amounted to SEK -1.38 (-2.86). Net profit for the period adjusted for items affecting
comparability was improved with 24 per cent to SEK -24.8 million (-32.6)

Comment from Carolina Brandtman, CEO Qliro
”Volumes with Qliro’s payment methods continued to increase and in the third quarter growth was 12 percent.
Our merchants continue to generate higher sales, although the reopening of society after the pandemic has somewhat
affected e-commerce growth. The onboarding of new merchants continued with the addition of the rapidly growing e-merchant Teknikproffset, which went live with our checkout solution at the end of the quarter, and in the fourth quarter the Swedish e-merchant Stronger will be onboarded. Growth of payment volumes over time drives increased lending and increased income. The income margin has been stable during the year, but is lower than in 2020. The decrease in the margin is mainly due to lower reminder income as a result of improved customer processes and functionality in the digital post-purchase experience as well as regulatory changes.

Since the start, Qliro’s focus has been on digital payment solutions and partnerships with the biggest online merchants in the Nordics. In just a few years, we have become established as the second largest company in the segment in Sweden. We have now begun broadening our offering to medium-sized e-merchants. The focus is on standardizing the offering, simplifying the onboarding process for new partners and gradually entering into partnerships with e-commerce platforms involving our payment services. As a first step in broadening the offering, we recently established a partnership with Wikinggruppen, one of Sweden’s largest e-commerce platforms.

While our emphasis on large merchants will not change, we are gradually adding another growth opportunity. Improved processes with new developer portal During the quarter we launched a new developer portal, thanks to which our API’S are now easily available. The portal makes it simpler for our partners to integrate Qliro’s checkout solution, and continuous updates will now be more convenient. The portal also contains more information and practical tips on our additional services.

During the quarter we received criticism for the email marketing of our personal loans and after a close dialogue with our merchant partners we decided on September 7 that it will be discontinued. The email marketing had targeted customers over 20 who in the last year had made a purchase using one of Qliro’s credit products. On September 9 the Swedish Consumer Agency announced that it had identified shortcomings in the marketing of Qliro’s personal loans. We are fully cooperating with the agency on this issue. The personal loan, which is a popular product mainly used to lower interest expenses, will continue to be marketed in our app and on our website.

Quarterly profit was stable at SEK -8.1 million (-8.6). For the cumulative period January-September profit improved to
SEK -24.8 million (-51.4). Income increased by 4 percent, in line with the previous quarter but lower than our long-term target. Income within the segment Payment Solutions was stable, while lending and payment volumes with our services grew by 11 percent. In our other segment, Digital Banking Services, income growth continued (+20 percent) with stable margins.
Expenses were at the same level as the previous quarter, but increased by 10 percent compared with the previous year.
The efforts to improve our credit processes and credit check models are producing results and credit losses decreased by 19 percent compared with the previous year despite increased lending.

We are not pleased with the financial results and the current growth rate. Our primary focus going forward is to increase growth and improve efficiency. In early October we therefore implemented changes in our organization and the ways we work to increase the emphasis on our core business – payments. The changes create opportunities to generate more value for our merchants and customers and thereby improve future growth and cost efficiency”

Presentation
Analysts, investors and media are invited to a webcasted conference call/audiocast at 10 am when CEO Carolina Brandtman and CFO Robert Stambro will present the result. After the presentation there will be a Q&A session.

Phone numbers:
Sweden +46 8 505 583 56
UK +44 333 300 90 31
USA +1 646 722 49 56
Link to the webcast: https://tv.streamfabriken.com/qliro-q3-2021

The presentation material and the webcast will also be available at https://www.qliro.com/en/investor-relations/presentations