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Klarna Business Update

Income 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.
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