#1Sm SIA bog Klarna. th Klarna. 2022 Business update.#2Full year 2022 results. Continuing to outperform peers and ecommerce growth, especially in the US. Gross merchandise volume SEK 837bn +22% FY22 YoY Adjusted operating result (SEKbn) H122 -5.02 H2 22 -2.79 44% improvement in just 6 months Revenue SEK 19bn +21% FY22 YoY Global credit losses as a % of GMV Q421 Q122 Q222 Q322 Q422 31% improvement since Q4 21 Klarna US performance beating targets. GMV +71% FY22 YOY US Credit loss rates reduced 58% Q422 YOY#3A sustainable & disruptive business model, Klarna is built to drive profitable growth. 1. Global reach 2. Shopping destination of the future 3. Agile business model delivering path to profitability --#4A business with global reach. K.#5Our scale driving compounding volume growth. SEK 0.2bn 500k 2006 Retail partners 2005 Klarna is founded and becomes profitable after just six months 2007 2008 2009 150m Consumers 2010 Pay Now launch Klarna live in six markets (Nordics, Germany and Netherlands) 2010 2011 2012 2013 2015 UK launch 2014 2015 2016 2017 2019 US launch 2018 2019 2020-2021 Klarna continues to expand globally (11 new markets since 2020) and launching various personalization offerings and features 2020 SEK 837bn 2022 2021 Gross merchandise volume (GMV) 2022#6Representative consumers 80% of the total adult population in our most mature markets are Klarna users Balanced representation · 60% Women 40% Men Klarna's user base is diverse, there's no typical customer. From all income levels Klarna consumers earn according to average income level distributions In all stages of life 27% Single w/o children 18% Partner w/o children 7% Other 11% Single with children 36% Partner with children Responsible credit users $100 average outstanding credit balance per consumer vs. $6,000 for credit card users All educational backgrounds 9% Other 32% University 28% Secondary Education 31% Post-secondary Education Responsible payers 99% of consumer balance at Klarna is paid Living in all areas 28% Rural 40% Suburb 32% City#72. Our reach is global. Live Roadmap United Kingdom → The Netherlands → Sweden Germany Spain Greece +Finland Belgium Italy Czech Republic → US Croatia Slovakia Regional overviews Estonia Latvia Mexico ↑↑↑↑↑↑↑ 个 Switzerland Austria Norway Denmark Ireland France Poland Portugal Australia New Zealand Canada Lithuania Romania Hungary Japan ↑↑↑↑↑↑↑↑↑↑↑#8Unmatched global reach and strong brand recognition. Klarna's global footprint is driving outsized adoption vs. competitors. # of countries live (2022) 45 Klarna Competitor 1 Competitor 2 Competitor 3 # of active users (2022, global) 150m Klarna Competitor 1 Competitor 2 Competitor 3 # of installs (2022, global) 24m Klarna Competitor 1 Competitor 2 Competitor 3 Competitor data based on latest available public disclosure. Stronger brand recognition enables Klarna further outpaced competitors and attract more consumer attention. Share of Google organic search (2020 to 2022) (Rolling 4 weeks, Global data) 50% 25% 0% Jan 2020 Jan 2021 Jan 2022 Dec 2022 Klarna Competitor 1 Competitor 2 Competitor 3#9Shopping destination of the future.#10Driving awareness, thanks to a great brand. 51% Global share of Google organic search Dec 2022 We have the world's most efficient model to accelerate commerce. Delivering a true shopping destination with engaging features. 635m Clicks to retailer sites in 2022 Figures shown are as at 31 December 2022, unless otherwise stated. 1 4 2 3 Superior payment services available across a global network. 500k Global retail partners today* Creating more value through transaction related services. 27m+ Monthly active app users#11Trusted brand. Build awareness and consideration. Presenting our products and propositions to the world in a unique way has become a moat for us, and an important way to give consumers the confidence to chose Klarna when buying. 0.0 VISA#12It started with payments. The trust we've achieved in our brand has been boosted by a cutting-edge product that started with a simple mission: to solve the problem of digital payments. Banking & Payments citi AM TEX 3 Klarna K. Shopping (a) a do ? M#13Strong foundation in flexible payments. Everything is ready Jordan! [email protected] +1 (610) 234-7514 Remember me on this device Ⓒ VISA Macy's Klarna. Pay now Visa .... 1234 Pay now One click payment Fast and secure X Klarna. Everything is ready Jordan! [email protected] +1 (610) 234-7514 Remember me on this device Ⓒ Macy's Pay in 30 days Pay in 30 days Interest-free Try before you buy X Everything is ready Jordan! [email protected] +1 (610) 234-7514 Remember me on this device VISA Klarna. Macy's Pay in 4 Every 2 weeks. Interest-free $90.00 $90.00 $90.00 Today h 4 wks Visa .... 1234 $90.00 in 8 wks 3 or 4 payments Interest-free Bi-weekly or monthly X Everything is ready Jordan! VISA Klarna. Remember me on this device [email protected] +1 (610) 234-7514 Macy's Payments 12 payments of $31.20 Pay every month. 4.00% APR $0.00 Today Visa ... 1234 $31.20 starts in 1 month Fair financing Flexible interest rates No hidden fees X#14And it doesn't end at purchase. We keep adding value. 9:41 Purchases $145.00 Pay this Friday All $913.00 Total you owe To pay Asos Feb 13 Options Payment due Mar 13 Unieuro Mar 19 Payment due Apr 13 Options $768.00 Pay next Friday Deliveries Pay Pay $145.00 Money $768.00 Flexible payment management Ret You have $1 580 left of salary this month. $90/day, doing $2.500 income Payments Outstanding balance $200 $34 due tomorrow EN Spending report $480 on average 500 700 800 $200 upcoming Klarna Money $720 spent Available balance $340 30 in savings Top-up 600 960 Easy budgeting tools All PERGA HAM Search On its way (2) Macy's Paid Report return H&M Return in progress On its way Delivered Jan 28-Order#: 026348FKE0894 Spotify Yearly Paid $90.00 Contact store Pay now Mark as delivered Jan 23- Tracking#: 79889www. + $93.90 $99.00 Jan 18-Order: HY27323FXLWDD69 Beautiful digital receipts Re 9:41 w Transaction services Track on Macy's www On its way Estimated arrival today between 6-7pm Open Macy's order all & 50 macy's Contact UPS Dynamic delivery tracking Se#15Beyond payments. After we built the best experience for managing payments, we began to serve intent-driven shoppers who know what they want. Banking & Payments citi AM EX Klarna K. 5 Shopping (a) a Jo P ? M#16We elevate the shopping experience like no other. > amazon Search Amazon amazon.com Nike Low-top Running Shoes ✰✰✰✰✰(1.905) Price: $170.00 FREE Shipping Deals Whole Foods Prime Video Music Best 00000 Add to Cart Sign K. Pay Q Shop anywhere with Klarna ⠀ Ĵ My wishlist Nike Super Rep Go 3 $100 $90 Earbuds $100 Share Recently added T-shirt $20 Algat Chair $340 Find item *** More Save & organize products ⠀ Watch and shop LRINOT MEAN WHOIS Sephora Reviewing latest items from Spehoral All you need for date night & skin ca... Mini Eyeshadow Palette $85.00 Immersive shoppable content G Nike Renew Elevate $99 $105 Men's White Price comparison a Amazon Ⓒ Nike O Free shipping 1-2 days 4.4 Size $3 shipping 5-7 days ASOS KO 2021 Incl, shipping Rich & powerful product search $99 $105 $119 Shopping and Inspiration 09:41 Klarna. Q Search Stores Categories Women's Winter Warmwear. Sale Zone Price dropb0% aft Buy Now $128 Top Snap Luxury Tabs Shopping spotlight Recommendations for you Purchases Walet Trending .all & New Arrivals Money Carts Personalised product recommendations#17Agile business model delivering path to profitability. 606#18The Klarna model is built for scale. # of consumers 2.4x - 150 63 Q4 19 Q4 22 # of active consumers (m) X Purchase frequency 1.5x 6.4 9.8 Q4 19 Q4 22 # 12m purchase frequency per purchasing consumer || Average revenue per user (ARPU) 1.7x 140 Q4 19 238 Q4 22 ARPU per purchasing consumer (SEK) Cost of services Credit losses Cost of fund 0.65% - -11% 0.58% Q4 19 Q4 22 % Net credit losses over GMV *Figures shown are as at the end of each quarter, unless otherwise stated. *Gross Profit representative of the full quarter. || Gross profit 1.9x 1,238 Q4 19 - 2,501 Q4 22 Gross profit* (SEKM) Indirect costs 15,348 FY2022 -24% 11,544 Q4 22 annualized Indirect costs (SEKM) || Earnings before tax#19Unique offering delivering accelerating ARPU. Rapidly growing consumer base... Total population in 2022 (between 18 and 80 years old) 159M 1.5x 36% 52% Established markets 251M 6.5x | 1% - 9% US 302M 2019 2022 Klarna market penetration (%)* 4.9x | 1% 3% Rest of world ...with usage accelerating across cohorts... ...driving accelerating ARPU. Purchases p.a. (by purchasing consumer cohorts)** 10x 5x 0 Average: 10x Year 2015 2021 2022 1 2 3 4 5 6 7 ARPU p.a. (by purchasing consumer cohorts)** (SEK) 300 200 100 0 Precautionary Covid credit tightening 1 2 3 APIE Year Average: SEK 238 4 5 6 2015 2021 2022 *Market penetration is based on total Klarna active consumers (excluding consumers via acquisitions) as a % of total population of each region. An active consumer is defined as a consumer who has transacted or logged into the Klarna app in the last 12 months. ** Excluding Sofort. 7#20A better marketing opportunity for our partners. Shopping Intent-driven audience a Booking.com Top Products H.M ★macy's Nhe in Categie Leading brands partnering with Klarna Partens ebay Foot Locker Dr. IKEA SAMSUNG SEPHORA instacart Earn up to 1% Cash Back Macy's has Coupons ULTA BEAUTY lululemon Nintendo PANDORA Inspiration 2019 P O 3 Global traffic to merchants (clicks) 2020 Discovery-driven audience 2021 635m 2022 Creators Oscar Samuelsson D SUMMERNES 2019 maltes Marketing Revenue (SEK) 2020 2021 1.6bn 2022#21Proven track record of profitability#22A reminder: We have a history of profitability. Klarna group historical EBT development (SEKm) 18 55 36 76 31 66 101 170 167 523 159 007 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Business model foundations driven by long history of profitability prior to decision to accelerate growth in new markets. Accelerating path towards profitability on track. Adjusted Operating Result (SEKbn) H1 2022 -5.02 H2 2022 -2.79 44% improvement achieved in just 6 months#23We have a tried and tested recipe in successful market launches. Market Sweden Norway Finland Germany Netherlands Austria Switzerland UK 2022 Gross Margin 72% 65% 71% 64% 58% 72% 74% 45% Total Established Markets Gross Profit (2022): SEK 8.5bn 0 "The J-curve effect" As markets mature, our model has proven its ability to deliver favorable gross margins over time, as seen in the UK. UK cumulative monthly gross profit 2016 2017 2018 2019 2020 2021 2022#24Sustaining revenue growth while decreasing losses. K.#25Klarna continues to grow - even as e-commerce rate has slowed. 2022 Global e-commerce, salesforce shopping index Klarna Global GMV, YOY Growth 0.64% -1% Q1 22 19% 0.80% -4% 22% Q2 22 0.74% -3% 26% Q3 22 Credit loss rate 0.58% -0% Q4 22 19%#26Strong gross profit growth and improving margins. Gross Profit SEKm 3,000 2,000 1,000 0- 38% Q4 21 YOY Growth 42% 42% Q1 22 31% Q2 22 33% Q3 22 44% Q4 22 Gross Margin#27Strong revenue growth with increasing share from the US market. Revenue take rate % Total revenue SEKbn US share of revenue % 2.28% 11 10% 2020 2.31% 16 21% 2021 2.31% 19 26% 2022 32% 2020-2022 CAGR POW! K FLO#28Continuous volume growth whilst making active credit decisions. 31% improvement in Global Credit losses rate while GMV is up 19% YoY in Q422 GMV (SEKbn) Loss as % GMV 203 0.84 Q4 21 187 0.64 Q1 22 209 0.80 Q2 22 199 0.74 Q3 22 242 0.58 Q4 22#29Klarna can react fast to market changes to steer credit risk as our credit receivables have a short repayment cycle. Renewal of the balance sheet 689 484 333 ........ 252 42 30 20 2019 2020 186 14 2017 2018 Total originated volume (SEKbn) Balance per end of period (SEKbn) 62 2021 837 7 2022 12x Age distribution of credit receivables, from origination 0-3 months 3-12 months 1-2 years 2+ years 73% 16% 8% 3% Klarna. 16% 8% 8% 68% Large Nordic bank (2021)#30In the US, loss rates have improved rapidly as we reach scale. Pi4 Delinquencies by Vintages: 60DPD+ Jan 21 Jul 21 Jan 22 79% lower Jul 22 0.97% 3#31Strong access to cost effective funding. Stable sources of funding Deposits 79% EUR/ 17% SEK 95.9% Deposits 1.5% Revolving Credit Facility 1.3% Senior Unsecured 0.9% Bilateral loans 0.4% Subordinated debt 0.03% Commercial paper Prudent funding strategy built to withstand market volatility 3% 2% 1% 0% 1 Jan 22 Mar 22 Jul 22 May 22 Funding costs % Fund.vol (act) 3, xIBOR (act) Sep 22 M I Nov22#32* H2 2022 restructuring initiatives have delivered. Adjusted indirect costs progression 86% 3.1 Q4 21 YoY Growth Indirect costs (SEKbn)* 62% 2.5 Q1 22 48% 2.8 Q2 22 1.9 -5% Q3 22 -24% Q4'22 YOY decreased in adjusted indirect costs 2.4 Q4 22 -24% Quarterly indirect costs excluding (a) Restructuring costs; (b) Share-based payments and related payroll taxes and; (c) Depreciation and amortization. 241 Shop with Klarna JD#33Sustainable & disruptive, Klarna's business model is built to drive profitable growth. 1. Global reach and brand recognition 2. Shopping destination of the future 3. Agile business model delivering path to profitability Full Year 2022 22% Global Volume growth 635m Clicks to retailer sites in 2022 63% Gross Margin in established markets 71% US Volume growth 27m+ Monthly active app users +18% YoY growth 0.58% Global credit losses Q4'22#34Lano Thank you.