Klarna Business Update slide image

Klarna Business Update

Robust 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.
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