#1Klarna Business Update. January-June 2020 Im KLARNA#2This is Klarna. ■ Founded 2005 in Stockholm. ■ Now active in 17 core markets on three continents. ■ Partners with +200,000 retailers globally. ■ 85 million consumers globally have used our services. ■ Europe's most highly valued privately held fintech company at a USD 5.5bn valuation (August 2019). ■ +55% volume growth and +30% revenue growth (CAGR) during the last seven years. ■ Top tier investor base including Sequoia Capital, Permira, Bestseller, CommBank, Dragoneer, Atomico, Ant Financial and H&M. K.#3Financial information. 44% Gross merchandise volume - H1 2020 vs. H1 2019 37% Total net operating income H1 2020 vs. H1 2019 22.3% CET1 ratio - June 2020 (13.3) 215bn (148) Gross merchandise volume - USD 22bn¹ (16)² 4,557m Total net operating income - USD 470m¹ (358)² (3,329) ¹ Klarna Holding AB's results are reported in SEK. To arrive at USD values, the average exchange rates YTD have been used; 1 USD equals approximately 9.7 SEK for the first six months 2020. 2 Klarna Holding AB's results are reported in SEK. To arrive at USD values, the average exchange rates YTD have been used; 1 USD equals approximately 9.3 SEK for the first six months 2019. ARNA Jan 50 22029 ARE K.#4Key highlights from the period. ■ Strong growth in H1 with accelerating gross merchandise volume and net operating income growth in Q2 2020 (51% and 41% year-on-year respectively). ■ 35,000 new retail partners, approximately 200 new per day. ■ 14 million new consumers and 12 million monthly active Klarna app users at the end of the period. ■ 45,000 app installs every day - 3x higher compared to same period last year. ■ Since launch in summer 2019, Klarna has been outpacing our closest competitors with almost 1.5 million more app installs. ■ Launch of Vibe - the first buy now, pay later loyalty program. ■ Launched in Australia, Belgium and Spain. S K.#5Robust performance to date with accelerating volume growth trend. Year-on-year growth (gross merchandise volume) 27% 2019 Q1 30% 2019 Q2 32% 35% 37% 2019 Q3 2019 Q4 2020 Q1 51% 2020 Q2 ■ Covid-19 has driven major shifts in the retail landscape, with accelerating online penetration in many of Klarna's key verticals (e.g. apparel, footwear, accessories, home & garden, beauty, etc.) while others (travel, ticketing) have been negatively affected. ■ Many retailers have recently expedited the development of their online offering as this has become the key engagement channel, and we have seen a significant acceleration of global retail brands partnering with us year to date, and look forward to many going live very shortly for peak shopping season in the fall. Despite taking precautionary measures during the first half of 2020, including adjusting our credit policies globally, Klarna has seen accelerated growth and demand from retailers and consumers. Our balance sheet strength, current all time high consumer credit quality indicators in the US, and continued focus on further improving our elevated shopping experience, ensures that Klarna is well positioned to meet this growing demand. ■ The result further solidifies the trend of accelerating growth seen during the last years.#6Positive long-term trends in consumer activity and experience. 7,500 5,000 2,500 Volume per consumer Volume (SEK) per active consumer and period 2016 H1 2017 H1 2.5x vs 2016 H1 2018 2019 H1 H1 Sweden. 2020 H1 100 Late fees Indexed late fees as share of volume. Late fees are def as fees that originate from consumers not paying on time. 2013 2014 2015 2016 2017 2018 2019 17 2020 H1 Yearly volume per active consumer increases steadily. Late fees as a share of volume decreases as the Klarna app provides tools to help consumers take control over their personal finances.#7A preferred growth partner for retailers. Active retailers Growth in number of retailers with transactions during the last twelve months. Global US 2019 H1 2019 H1 ~1.3x 2020 H1 ~2.5x 2020 H1 In-store UK 2019 H1 2019 H1 2x 2020 H1 ~1.8x 2020 H1 Main focus on growth in new markets, e.g. the US and the UK XXXXX 美 Rapid growth of Klarna's in-store offering. XXXX**#8Newly added retail partners. AB SEPHORA GROUPON ANINE BING ONTWRK SHEIN THEI NORTHI .FACE FINISH LINE D C Charlotte Tilbury VANS "OFF THE WALL" RALPH LAUREN AÉROPOSTALE Domino's Pizza Fender TED BAKER LONDON CLUB MONACO NAUTICA#9Strong base of more than 200,000 retail partners. MVMTX ticketmaster AliExpress D&G Acne Studios DOLCE GABBANA H&M A.P.C. Agent Provocateur Martens asos FARFETCH INDOCHINO Superdry. MARCHESA ALLSAINTS SONOS V cult Lulus M.GEMI BOSE GOOD AMERICAN BEAUTY boohoo →Expedia LUNYA GYMSHARK DANIEL WELLINGTON bebe (MK) MICHAEL KORS Abercrombie AIRFRANCE/ & Fitch Timberland TOPSHOP ΤΟΡΜΑΝ overstock. PRETTYLITTLETHING SAMSUNG Lenovo NASTY GAL NINE WEST BEAUTY BAY dyson RIVER ISLAND (3) Planet blue RIT UAL S TOMS#10Klarna app continuing to show strong momentum. Global app installs 6m 10m 2018 H1 2018 H2 3x vs 2019 H1 June 2019 2019 H1 2019 H2 Global monthly active app users 1.8x June 2020 2020 H1 5m 1m US app installs Cumulative since January 1st, 2019. Competitor data from App Annie. 2019 H1 13x vs 2019 H1 2019 H2 2020 H1 US monthly active users June 2019 4x June 2020 Closest competitor (2019 HỒ - 2020 H1) ● Elevate your shopping experience. ● Products, Brands or Stores SNEAKHUB Sneakhub K. BI Bela Hauto. Created for you TODAY App usage increases as more services are launched in the app, e.g: Shopping Wish lists Deliveries Spending Price drop notifications street MODE NOIR Mode Noir K. INDOOR Indoor NO MAKEUP Natural beauty Natural beauty No makeup My Klarna View all#11Klarna Card has proven to be an attractive consumer proposition. Issued cards to new users (accumulated) 400k 200k 2019 H1 Card volume (SEK) 4bn 3bn 2bn 1bn 2018 H2 2018 H2 2.7x vs 2019 H1 2019 H1 2019 H2 3.7x vs 2019 H1 2019 H2 2020 H1 2020 H1 Average volume per active card increases as card holders increases their usage of the card. Klarna card now live in Sweden and Germany. More markets to follow. th. th FU 35 Klarna KERA Sm Klarna. DOC th Sm Klarna th DOST th Ucho Klan th 183m Kioma.#12Financial overview. K.#13Income statement Amounts in SEKm Total net operating income Total operating expenses before credit losses Operating profit before credit losses, net Credit losses, net Credit losses, net (excl. additional reserve) Operating profit Net profit for the period Numbers may not sum due to rounding. Jan-Jun 2020 4,557 -4,015 542 -1,194 -1,067 -652 -522 Jan-Jun 2019 3,329 -2,776 554 -618 -618 -65 -73 ■ Total net operating income growth of 37% to SEK 4.6bn, driven primarily by growth in net interest income of 17% and growth in commission income of 43%. ■ Growth in commission income driven by increased sales volumes and higher consumer activity across all markets but especially in the US and UK market. ■ Total operating expenses before credit losses grew 45% to SEK 4bn, in line with plan as the commitment stands to further invest to deliver value in terms of brand awareness and a consumer-friendly product range. ■ Credit quality remains steady and at low levels in core markets and is steadily improving in newer markets. K.#14Balance sheet Amounts in SEKm Assets Cash and balances with central banks Treasury bills chargeable at central banks, etc. Loans to the public Other current and non-current assets Total assets Liabilities Liabilities to credit institutions Deposits from the public Debt securities in issue Other current and non-current liabilities Equity Total equity Total liabilities and equity Numbers may not sum due to rounding. Jun 30 2020 1,922 5,301 32,975 8,516 48,714 2,541 23,687 4,768 8,323 9,395 48,714 Dec 31 2019 107 2,511 29,655 7,617 39,889 4,940 12,288 5,583 7,423 9,655 39,889 Jun 30 2019 1 2,496 22,639 5,336 30,472 466 15,218 1,998 6,908 5,882 30,472 ■ Loans to the public growth of 46% year-on-year, reflecting the overall volume growth. ■ Materially increased cash and liquidity buffer, reflected by 189% growth in cash and treasury bills chargeable at central banks, etc. ■ Loans to the public have been partly funded by the increase in Deposits from the public, which have increased by 56% year-on-year to SEK 24bn, primarily driven by EUR deposits. ■ Klarna also issued debt and raised new equity during the last twelve months, as reflected by the increase in Debt securities in issue by 139% and Total equity by 60%. K.#15Cash flow statement Amounts in SEKm Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Cash and cash equivalents include the following items: Cash and balances with central banks Loans to credit institutions Cash and cash equivalents Numbers may not sum due to rounding. Jan-Jun 2020 2,476 -331 -659 1,486 1,624 3,124 1,922 1,202 3,124 Jan-Jun 2019 -630 -1,107 1,012 -724 2,272 1,598 1 1,598 1,598 ■ Positive cash flow from operating activities, as increased negative operating profit was offset by increased non-cash items (such as provision for credit losses) and positive change in the assets and liabilities of operating activities (such as increase in deposits from the public). ■ Decreased negative cash flow from investing activities, as higher investments in intangible and tangible assets were offset by lower investments in business combinations (last year's period includes the acquisition of Close Brothers Retail Finance). ■ Negative cash flow from financing activities, as a lower amount of capital was raised by issue of new shares compared to last year, and short-term debt securities in issue were reduced. K.#16Klarna.