Klarna Growth and Market Expansion slide image

Klarna Growth and Market Expansion

Losses at all time low. If we had the same amount of volume from the same markets in 2021 as we did in 2019, then our losses would be over 30% lower². The increase in absolute terms of our credit losses comes from our successful growth in new customers and new markets. Credit losses USDbn¹ Credit losses 0.2 -30% With same volumes as 2019 losses declined² by over 30% 2 Improved underwriting on mature market volume growth added ~100m of losses 3 Volume growth from new customers in growth markets 2 added ~300m of losses Losses are a direct result of our expansion and the increased volume of new consumers, rather than a deterioration of the portfolio. +45bn Gross merchandise volume growth since end of 2019 10 New Markets since end of 2019 In the US, since end of 2019... 0.5 We massively increased our number of users... ...while decreasing credit losses by 60%. Credit losses as % of GMV 0.56% 0.36% 2019 2019 at 2021 loss rates Volume (USDbn) 35 45 0.67% 2021 80 1 Klarna's results are reported in SEK. To arrive at USD values, the average exchange rates for 2019 and 2021 have been used; 1 USD equals approximately 9.5 SEK for full year 2019, and 1 USD equals approximately 8.6 SEK for full year 2021. 2 Credit losses comparison between 2019 actuals and "2019 at 2021 loss rates", where the latter has been calculated applying, at country level, 2021 credit loss rates to 2019 merchandise volume. Volume growth impacts (~100m and ~300m) calculated applying, at country level, 2021 credit loss rates to the 2019-2021 volume growth. 2019 5x 2021 -60% 2019 2021 Number of users Credit Losses as % of GMV
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