Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

QIWI PLC (Registrant)

Date: August 19, 2021

/s/ Elena Nikonova

Elena Nikonova

Interim Chief Financial Officer

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF A FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For August 19, 2021

QIWI plc

12-14 Kennedy Ave.

Kennedy Business Centre, 2nd Floor, Office 203

1087 Nicosia Cyprus

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXCEPT FOR REFERENCES TO “TOTAL NET REVENUE”, “PS PAYMENT REVENUE”, “PS PAYMENT ADJUSTED NET REVENUE”, “PS OTHER REVENUE”, “PS OTHER ADJUSTED NET REVENUE”, “PAYMENT AVERAGE ADJUSTED NET REVENUE YIELD”, “CFS SEGMENT NET REVENUE YIELD”, “ADJUSTED EBITDA”, “ADJUSTED EBITDA MARGIN”, “ADJUSTED NET PROFIT”, AND “ADJUSTED NET PROFIT PER SHARE”, EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENTS ON FORM S-8 (FILE NO. 333-190918; FILE NO. 333-212441) OF QIWI PLC AND IN THE OUTSTANDING PROSPECTUS CONTAINED IN SUCH REGISTRATION STATEMENTS.


Exhibits

99.1		“QIWI Announces Second Quarter 2021 Financial Results” press release dated August 19, 2021

99.2		Interim condensed consolidated financial statements (unaudited) of QIWI plc for the six months ended June 30, 2021

99.3		Acknowledgment letter of Ernst & Young LLC

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

EX-99.1

Exhibit 99.1

LOGO

QIWI Announces Second Quarter 2021 Financial Results

Second Quarter Total Net Revenue amounted to RUB 6,049 million (3% YoY increase for continued operations)

Adjusted Net Profit amounted to RUB 2,704 million (2% decrease YoY) or RUB 43.30 per diluted share

QIWI upgraded FY 2021 guidance

Board of Directors approved dividends of 30 cents per share

NICOSIA, CYPRUS – August 19, 2021 – QIWI plc (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of next generation payment and financial services in Russia and the CIS, today announced its financial results for the second quarter ended June 30, 2021.

2Q 2021 Financial Highlights

Group results

•

Total Net Revenue from continued operations increased by 3% YoY to RUB 6,049 million ($83.6 million). Including discontinued operations Total Net Revenue decreased by 12% YoY.

•

Adjusted EBITDA decreased by 1% YoY and stood at RUB 3,850 million ($53.2 million). Adjusted EBITDA margin improved by 6.6ppt and reached 63.7%

•

Adjusted Net Profit decreased by 2% YoY to RUB 2,704 million ($37.4 million), or RUB 43.30 per diluted share. Adjusted Net Profit margin went up by 4.4ppt to 44.7%

Payment Services (PS) segment results

•

Total PS volume increased by 32% YoY to RUB 457.6 billion ($6.3 billion)

•

PS Net Revenue increased by 5% YoY to RUB 5,678.1 million ($78.5 million)

•

PS Net Profit decreased by 6% YoY to RUB 3,042 million ($42.0 million). PS Net Profit margin decreased by 6.5ppt to 53.6%

Key events in 2Q 2021 and after the reported period

•

The Board of Directors comprised of seven members, including three independent non-executive directors, was elected at the Company’s AGM. Sergey Solonin was elected Chairman of the Board of Directors

•

Andrey Protopopov was appointed as CEO of the Company and became a member of the Board of Directors

•

The Board of Directors approved an interim dividend for 2Q 2021 in the amount of 30 cents per share

•

QIWI entered into a definitive agreement to sell its 40% stake (45% economic interest) in Tochka for RUB 4.95 billion, subject to performance adjustments depending on Tochka’s FY 2021 audited results¹. The Closing is subject to the approval of the Federal Antimonopoly Service of the Russian Federation (“FAS Approval”) and is expected to take place in 3Q 2021.

Andrey Protopopov, QIWI’s CEO commented:

“Despite overall challenging environment we managed to deliver another quarter of strong results coming above our initial expectations. Our focus on the key niches, high standards of service and operational efficiency pays off with growing volumes and sustainable margins.

¹	For more details please refer to the respective press release disclosed at Company’s website:

https://investor.qiwi.com/news-releases/news-release-details/qiwi-announces-sale-its-stake-tochka-project

I’m pleased with the developments in our core Payment Services segment, which shows sound volume growth of 32% and net revenue growth of 7% YoY despite negative effect from temporary block of cross-border payments. Our Money Remittance vertical volume reached record highs and E-commerce vertical demonstrated growth year over year. We were well prepared for the Euro 2020 football championship and observed solid volumes across our key strategic directions on the back of our continuous efforts to improve customer value proposition. The team is progressing well on launch of new products, signing new partnerships and onboarding of new merchants. I also look forward, with enthusiasm, to the developments in B2B segment via our Factoring PLUS project where we continued to expand our portfolios and launched credit products for contracts execution and for market places. We are constantly enhancing our product portfolio mix and look for new opportunities that emerge on the market.

Despite the headwinds we face, we are committed to achieving our goals. I believe, together with our professional team, we are able to deliver sustainable and profitable long-term growth to our shareholders.”

2Q Results

Net Revenue breakdown by segments


	2Q 2020		2Q 2021		YoY change						2Q 2021
	RUB million		RUB million		RUB million			%			USD⁽¹⁾
Total Net Revenue		6,839		6,049		(790	)		(11.6	%)		83.6
Payment Services (PS)		5,397		5,678		282			5.2	%		78.5
PS Payment Net Revenue		4,609		4,933		324			7.0	%		68.2
PS Other Net Revenue		788		745		(42	)		(5.4	%)		10.3
Consumer Financial Services (CFS)		437		—		(437	)		(100.0	%)		—
Rocketbank		509		—		(509	)		(100.0	%)		—
Corporate and Other		496		371		(125	)		(25.1	%)		5.1

(1)	Throughout this release dollar translation calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

Total Net Revenue from continued operations increased by 2.6% YoY to RUB 6,049 million ($83.6 million) driven by PS segment Net Revenue growth. Including discontinued operations of Sovest (reflected in CFS) and Rocketbank Total Net Revenue decreased by 11.6% YoY.

PS Net Revenue in 2Q 2021 was RUB 5,678 million ($78.5 million) – 5.2% higher compared to last year driven by PS Payment Net Revenue increase.

PS Payment segment breakdown by verticals


	2Q 2020			2Q 2021			YoY change						2Q 2021
	RUB			RUB			RUB			%			USD
PS Payment Volume (billion)⁽¹⁾		346.8			457.6			110.8			32.0	%		6.3

E-commerce		100.2			104.3			4.1			4.1	%		1.4
Financial services		53.7			67.8			14.1			26.2	%		0.9
Money remittances		142.2			243.7			101.5			71.4	%		3.4
Telecom		42.6			28.9			(13.7	)		(32.1	%)		0.4
Other		8.1			12.9			4.8			59.5	%		0.2

PS Payment Net Revenue (million)⁽²⁾		4,608.4			4,932.8			324.4			7.0	%		68.2

E-commerce		2,687.7			2,292.6			(395.1	)		(14.7	%)		31.7
Financial services		313.6			161.5			(152.1	)		(48.5	%)		2.2
Money remittances		1,317.5			2,337.0			1,019.5			77.4	%		32.3
Telecom		238.7			124.4			(114.3	)		(47.9	%)		1.7
Other		51.0			17.2			(33.8	)		(66.2	%)		0.2

PS Payment Net Revenue Yield⁽³⁾		1.33	%		1.08	%		n/a			(0.25	%)		1.08	%

E-commerce		2.68	%		2.20	%		n/a			(0.48	%)		2.20	%
Financial services		0.58	%		0.24	%		n/a			(0.35	%)		0.24	%
Money remittances		0.93	%		0.96	%		n/a			0.03	%		0.96	%
Telecom		0.56	%		0.43	%		n/a			(0.13	%)		0.43	%
Other		0.63	%		0.13	%		n/a			(0.50	%)		0.13	%

(1)

PS Payment Volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants or other customers included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in Contact and Rapida may differ from the methodology used by QIWI. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of Contact and Rapida will be brought in conformity with the methodology used by QIWI.

(2)	PS Payment Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(3)	PS Payment Net Revenue Yield is defined as PS Payment net revenue divided by Payment Services payment segment volume.

In 2Q 2021 PS Payment Net Revenue increased by 7.0% YoY and amounted to RUB 4,933 million ($68.2 million) as a result of an increase of the PS Payment volume by 32.0% which was partially offset by a decrease of PS Payment Net Revenue Yield by 25bps YoY.

PS Payment Volume increased by 32.0% to RUB 458 billion primarily due to the Money remittance and Financial services verticals. Money Remittances vertical went up by 71.4% YoY reaching a historical high level of RUB 244 billion represented by increased volumes across all key streamlines, namely card-to-card money transfers to Master Card, Visa and MIR from Qiwi Wallet accountholders (up 109% YoY), repayment of customers’ betting winnings on the QIWI Wallet (up 59% YoY), B2B2C transactions (up 135% YoY) resulting largely from the development of our product offering for self-employed and increase in peer-to-peer operations, and money remittances via Contact (up 29% YoY). Volume growth in the Financial services vertical by 26.2% YoY was driven by increased bank and micro loans repayments. E-commerce vertical Volume went up by 4.1% YoY on increased TSUPIS operations and recovery of tourism partially offset by the decrease in payment volumes to foreign merchants due to temporary restrictions imposed by the CBR² in December 2020 and expired in June 2021. Telecom volume decreased by 32.1% YoY to RUB 29 billion on lower volumes coming through MNOs³ and adverse impact of the downsizing kiosk network. Other category comprising a broad range of merchants in utilities and other government payments as well as charity organizations to which we offer payment processing services increased by 59.5% YoY to RUB 13 billion.

We note significant growth within the B2B and B2B2C streamlines as we continuously enhance our customer value proposition. These transactions mostly represent use-cases connected to peer-to-peer transactions, light banking, collection of proceeds services we provide to self-employed customers, etc. We

²	Disclosed in the Report of Foreign Private Issuer on Form 6-K furnished to the SEC on December 9, 2020

³	Mobile network operators

believe that significant growth in revenue from peer-to-peer transaction may not be representative of revenue from such transactions in future periods.

A decline in PS Payment Net Revenue Yield by 25bps to 1.08% was mainly driven by a combination of (1) decreased E-commerce Net Revenue Yield by 48bps to 2.20% and (2) lower share of E-commerce vertical in total PS volume by 6.1ppt to 22.8%, both resulting from the temporary restrictions imposed on higher-yielding cross-border payments.

Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by our system may materially adversely affect our results of operations.

PS Other Net Revenue breakdown


	2Q 2020		2Q 2021		YoY change						2Q 2021
	RUB million		RUB million		RUB million			%			USD million
PS Other Net Revenue		788		745		(42	)		(5.4	%)		10.3

Fees for inactive accounts and unclaimed payments		501		413		(88	)		(17.6	%)		5.7
Other Net Revenue		287		332		46			16.0	%		4.6

PS Other Net Revenue decreased by 5.4% YoY and stood at RUB 745 million ($10.3 million).

Fees for inactive accounts and unclaimed payments were RUB 413 million ($5.7 million) or 17.6% lower compared to 2Q 2020 due to extension of inactivity terms from 6 to 12 months as well as decreased number of QIWI Wallet accounts.

Other Net Revenue largely composed of interest revenue, revenue from overdrafts provided to agents, and advertising increased by 16.0% YoY up to RUB 332 million ($4.6 million) driven by cost optimization measures resulting into lower expenses for call center, SMS and Voicemail.

Payment Services other operating data


	2Q 2020		2Q 2021		YoY change
Active kiosks and terminals (units)⁽¹⁾		118,455		100,324		(18,131	)	(15.3	%)
Active Qiwi Wallet accounts (million)⁽²⁾		20.9		15.5		(5.4	)	(25.7	%)
PS Payment volume per active QIWI Wallet account (RUB thousand)		16.6		29.5		12.9		77.6	%

(1)

We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the number of active kiosks and terminals for the last 30 days of the respective reporting period.

(2)	Active QIWI Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.

The number of active kiosks and terminals was 100,324, including Contact and Rapida physical points of service, a decrease of 15.3% compared to the previous year. The number of kiosks and terminals is generally decreasing as market evolves towards a higher share of digital payments. Our physical distribution network was also negatively affected by the spread of the COVID-19 pandemic, corresponding lockdown measures, and other restrictions that limited our consumers’ access to certain retail locations as well as changed customer behavior. Nevertheless, our physical distribution network remains an important part of our omni-channel infrastructure.

The number of active QIWI Wallet accounts was 15.5 million as of end of 2Q 2021, a decrease of 5.4 million, or 25.7%, compared to 20.9 million last year. The decrease primarily resulted from the introduction of limitations on the anonymous wallets, and enhancement of certain KYC, identification and compliance procedures. The number of active QIWI Wallets was also affected by the CBR restrictions imposed in December 2020 resulting in outflow of clients that customarily used our services specifically for payments to merchants that have become subject to the restrictions.

We are focused on diversification of our product proposition and increase of payment volumes per QIWI Wallet account. In 2Q 2021 PS Payment Volume per active QIWI Wallet account was RUB 29 thousand which is 78% higher YoY.

Corporate and Other (CO) Net Revenue breakdown


	2Q 2020		2Q 2021			YoY change						2Q 2021
	RUB million		RUB million			RUB million			%			USD million
CO Net Revenue		496		371			(124	)		(25.1	%)		5.1

Tochka		166		74			(92	)		(55.6	%)		1.0
Factoring		204		181			(24	)		(11.6	%)		2.5
Flocktory		117		127			10			9.0	%		1.8
Corporate and Other projects		8		(10	)		(19	)		(223.5	%)		(0.1	)

CO Net Revenue in 2Q 2021 decreased by 25.1% YoY to RUB 371 million ($5.1 million) driven by Tochka and Other projects Net Revenue decline partially offset by successful roll out of Factoring and Flocktory projects:

•

Tochka Net Revenue decreased by 55.6% YoY to RUB 74 million ($1.0 million) due to switch of some SME customers from QIWI to Tochka bank. The technical change of cash and settlement service bank provider resulted into Net Revenue decline partially offset with Net Profit growth through the equity pick up. In the beginning of 3Q 2021 QIWI entered into agreement to sell its stake in the project. Thus, in the next quarters impact on operating results from Tochka is expected to cease.

•

Factoring Net Revenue decreased by 11.6% YoY to RUB 181 million ($2.5 million) due to a one-off adjustment in 2Q 2020 in the amount of RUB 50 million. Excluding the one-off effect, Factoring Net Revenue would have shown growth of 17.1% YoY on further expansion of bank guarantees and factoring portfolios:

•

Bank Guarantees portfolio increased by 87% YoY to RUB 24.8 billion with average check growth by 3% to RUB 1.1 million.

•

Factoring portfolio increased by 59% YoY and reached RUB 5.3 billion with number of active clients going up by 39% YoY to 492.

•

Flocktory Net Revenue increased by 9.0% YoY and reached RUB 127 million ($1.8 million) driven by growing number of clients and traffic-providers (7% YoY) using Flocktory’s platform and marketing services underpinned by growth of average check.

•

Corporate and Other projects Net Revenue include result of operations of different projects in the start-up stage and in 2Q 2021 it amounted to RUB 10.5 million ($0.1 million) of loss.

Operating expenses and other non-operating income and expenses


	2Q 2020						2Q 2021						YoY change								2Q 2021
	RUB			% of Net			RUB			% of Net			RUB		%			ppt			USD
	million			Revenue			million			Revenue			million								million
Operating expenses		(3,369	)		(49.3	%)		(2,486	)		(41.1	%)		883		(26.2	%)		8.2	%		(34.4	)

Selling, general and administrative expenses		(696	)		(10.2	%)		(612	)		(10.1	%)		84		(12.1	%)		0.1	%		(8.5	)
Personnel expenses		(1,938	)		(28.3	%)		(1,525	)		(25.2	%)		413		(21.3	%)		3.1	%		(21.1	)
Depreciation, amortization & impairment		(445	)		(6.5	%)		(285	)		(4.7	%)		160		(36.0	%)		1.8	%		(3.9	)
Credit loss (expense)		(290	)		(4.2	%)		(64	)		(1.1	%)		226		(77.9	%)		3.2	%		(0.9	)

Other non-operating income and expenses		(883	)		(12.9	%)		11			0.2	%		894		(101.2	%)		13.1	%		0.2

Share of gain of an associate and a joint venture		107			1.6	%		141			2.3	%		34		31.8	%		0.8	%		1.9
Foreign exchange loss, net		(292	)		(4.3	%)		(50	)		(0.8	%)		242		(82.9	%)		3.4	%		(0.7	)
Interest income and expenses, net		(33	)		(0.5	%)		(15	)		(0.2	%)		18		(54.5	%)		0.2	%		(0.2	)
Other income and expenses, net		(665	)		(9.7	%)		(65	)		(1.1	%)		600		(90.2	%)		8.6	%		(0.9	)

Operating expenses went down by 26.2% YoY to RUB 2,486 million ($34.4 million) and improved by 8.2ppt to 41.1% as percent of Total Net Revenue driven by divestiture of SOVEST and Rocketbank projects that offset the negative operating leverage effect resulting from Total Net Revenue decline on temporary restrictions imposed on cross-border payments.

Selling, general and administrative expenses decreased by 12.1% to RUB 612 million ($8.5 million). SG&A expenses as percent of Total Net Revenue remained almost flat decreasing by 0.1ppt YoY to 10.1% primarily on lower advertising, client acquisition and related expenses of SOVEST and Rocketbank projects partially offset by higher taxes expenses and expenses related to the Tochka platform.

Discontinuation of SOVEST and Rocketbank projects also resulted in optimization of personnel expenses by 21.3% YoY to RUB 1,525 million ($21.1 million) or 25.2% as percent of Total Net Revenue — 3.1ppt improvement compared to last year.

Depreciation, amortizanion and impairment as well as Credit loss expenses combined decreased by 5.0ppt YoY to 5.8% as percent of Total Net Revenue driven by divestiture of SOVEST and Rocketbank projects.

Share of gain of an associate and a joint venture represented by Tochka equity pick up increased by 31.8% YoY to RUB 141 million ($1.9 million) on strong performance of Tochka in 2Q 2021 compared to last year.

Foreign exchange loss (net) decreased by 82.9% YoY to RUB 50 million ($0.7 million) driven by currency rates fluctuations.

Interest expenses (net) primarily related to interest on non-banking loans issued and interest expense accrued on lease liabilities held by the Company, decreased by 54.5% YoY to RUB 15 million ($0.2 million) driven by divestiture of SOVEST and Rocketbank projects.

Other expenses (net) decreased by 90.2% YoY to RUB 65 million ($0.9 million) driven by divestiture of SOVEST project.

Income tax expense

Income tax expense increased by 25.6% YoY to RUB 941 million mainly resulting from divesture of SOVEST and Rocketbank projects. Effective tax rate in 2Q 2021 was 2.6ppt lower YoY and stood at 26.3%.

Profitability results


	2Q 2020			2Q 2021			YoY change						2Q 2021
	RUB million			RUB million			RUB million			%			USD million
Adjusted EBITDA		3,905			3,850			(55	)		(1.4	%)		53.2
Adjusted EBITDA margin, %		57.1	%		63.7	%		n/a			6.6	%		63.7	%

Adjusted Net Profit		2,756			2,704			(52	)		(1.9	%)		37.4
Adjusted Net Profit margin, %		40.3	%		44.7	%		n/a			4.4	%		44.7	%

Payment Services		3,243			3,042			(201	)		(6.2	%)		42.0
PS Net Profit margin, %		60.1	%		53.6	%		n/a			(6.5	%)		53.6	%
Consumer Financial Services		(134	)		—			134			(100.0	%)		—
Rocketbank		44			—			(44	)		(100.0	%)		—
Corporate and Other		(397	)		(338	)		59			(14.8	%)		(4.7	)

Tochka		165			132			(33	)		(20.3	%)		1.8
Factoring		94			54			(40	)		(42.6	%)		0.7
Flocktory		(23	)		17			40			172.3	%		0.2
Corporate		(543	)		(512	)		31			(5.7	%)		(7.1	)
Other projects		(90	)		(28	)		62			(68.4	%)		(0.4	)

Adjusted EBITDA decreased by 1.4% YoY to RUB 3,850 million ($53.2 million) driven by Total Net Revenue decline and partially offset by Adjusted EBITDA margin improvement by 6.6ppt to 63.7%. Adjusted EBITDA margin went up despite negative operating leverage effect offset by optimization measures resulting from divesture of SOVEST and Rocketbank projects.

Adjusted Net Profit in 2Q 2021 decreased by 1.9% YoY to RUB 2,704 million ($37.4 million). Adjusted Net Profit margin improved by 4.4ppt and stood at 44.7% primarily driven by the same factors affecting Adjusted EBITDA.

Payment Services Net Profit decreased by 6.2% YoY to RUB 3,042 million ($42.0 million) mainly driven by margin decrease by 6.5ppt to 53.6% due to temporary restrictions imposed on higher-yielding cross-border payments, increase in personnel expenses and higher income tax partially offset by foreign exchange gain for the reported period and PS Net Revenue growth of 5.2%.

CO Net Loss includes: (i) net profit from the Tochka JV operations; (ii) net profit of our Factoring PLUS project; (iii) net profit of the Flocktory project; (iv) corporate expenses, and (v) net loss from other projects in the start-up stage. CO Net Loss in 2Q 2021 decreased by 14.8% YoY to RUB 338 million ($4.7 million) driven primarily by the following factors:

•

Corporate Net Loss in 2Q 2021 decreased by 5.7% YoY to RUB 512 million mainly due to lower personnel expenses (excluding share-based payments) and foreign exchange gain partially offset by higher income tax expenses.

•

Tochka Net Profit decreased by 20.3% YoY to RUB 132 million driven by Net Revenue decline by 55.6% YoY due to switch of some SME customers from QIWI to Tochka bank which was partially offset with Net Profit growth through the equity pick up. In the beginning of 3Q 2021 QIWI entered into agreement to sell its stake in the project. Thus, in the next quarters the impact on operating results from Tochka is expected to cease.

•

Factoring Plus Net Profit declined by 42.6% YoY to RUB 54 million as a result of the accrual of reserves for expected credit losses due to digital bank guarantees and factoring portfolios growth, increased personnel expenses for business scale up and last year’s one-off adjustment of about RUB 40 million related to agent expenses. Excluding the one-off effect Factoring Net Profit would have stayed flat YoY.

•

Floctory Net Profit in 2Q 2021 stood at RUB 17 million as a result of Net Revenue growth by 9.0% YoY, lower personnel expenses and forex exchange gain.

•

Loss from Other projects decreased by 68.4% YoY as a result of optimization measures and ceasing of some of the projects in the end of 2020.

Consolidated cash flow statement


	1H 2020			1H 2021			YoY change						1H 2021
	RUB million			RUB million			RUB million			%			USD million
Net cash generated from operating activities before changes in working capital		5,305			5,663			358			6.7	%		78.2
Change in working capital		(13,844	)		(14,131	)		(287	)		2.1	%		(195.3	)
Net interest and income tax paid		848			(254	)		(1,102	)		(130.0	%)		(3.5	)

Net cash flow used in operating activities		(7,691	)		(8,722	)		(1,031	)		13.4	%		(120.5	)
Net cash received from investing activities		648			837			189			29.2	%		11.6
Net cash used in from financing activities		(1,832	)		(3,533	)		(1,701	)		92.8	%		(48.8	)
Effect of exchange rate changes on cash and cash equivalents		403			(111	)		(514	)		(127.5	%)		(1.5	)

Net decrease in cash and cash equivalents		(8,472	)		(11,529	)		(3,057	)		36.1	%		(159.3	)

Cash and cash equivalents at the beginning of the period		42,101			47,382			5,281			12.5	%		654.7

Cash and cash equivalents at the end of the period		33,629			35,853			2,224			6.6	%		495.4

Net cash generated from operating activities before changes in working capital for 1H 2021 increased by 6.7% YoY to RUB 5,663 million ($78.2 million). Net cash flow used in operating activities for 1H 2021 increased by 13.4% YoY to RUB 8,722 million ($120.5 million) driven by significant changes in working capital and increased income tax paid. Change in working capital for 1H 2021 resulted in cash outflow of RUB 14,131 million primarily due to (i) lower accounts payable and accruals of RUB 12,028 million resulted from discontinuation of payments to foreign merchants on the back of the temporary CBR prescriptions related to cross-border operations; (ii) decrease in in customer accounts and amounts due to banks in the amount of RUB 4,257 million driven predominantly due to seasonal factor; (iii) increase of income tax paid to RUB 1,443 million driven by increase in net profit for the reported period by 36%.

Net cash flow received from investing activities for 1H 2021 increased by 29.2% YoY to RUB 837 million ($11.6 million). This increase in net cash outflow was primarily driven by the less treasury operations comprising purchases of publicly traded debt securities in the last year following the wind-down of Rocketbank.

Net cash flow used in financing activities for 1H 2021 increased by 92.8% YoY to RUB 3,533 million ($48.8 million). The increase in net cash outflow was primarily driven by (i) the increase in repayment of borrowings by RUB 902 million and (ii) higher dividend payments in 1H 2021 by RUB 816 million due to an increase of distributable profit and lower payout ratio in 1H 2020 due to the COVID-19 outbreak.

As a result of factors described above cash and cash equivalents as of the end of 1H 2021 was RUB 35,583 million ($495.4 million) – an increase by 6.6% compared to the end of 1H 2020.

Recent Developments

The CBR restrictions

At the beginning of 2021 the CBR permitted us to resume processing payments to certain key foreign merchants and lifted some of the other restrictions imposed in December 2020. In June 2021 the term of restrictions imposed by the CBR expired. As a result, we started to onboard foreign merchants. However, the recovery of the payment volume and revenue lost in the wake of restrictions is highly dependent on changed customer behavior and new regulatory developments and cannot be accurately estimated as well as may never be restored. Considering existing uncertainties, we remain cautious and don’t provide guidance on the recovery process. There can be no assurance that new laws and regulations that have emerged recently or may emerge

in the near term will not adversely affect the recovery process. The restrictions introduced by the CBR have substantially decreased the volume mainly in our E-Commerce market vertical and therefore have adversely affected and will continue to adversely affect the results of operations of our Payment Services Segment.

Betting industry regulation

Since 2016, we have been operating an Interactive Bets Accounting Center (TSUPIS), which we established together with one of the self-regulated associations of bookmakers in order to enable us to accept electronic bets on behalf of sports betting companies and process related payments. In December 2020, a new law was adopted, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Center (ETSUP). By the end of September 2021, the newly-appointed ETSUP will replace the existing TSUPIS. Currently, both we and the operator of the competing TSUPIS have publicly made proposals to serve as the ETSUP pursuant to the new regulatory regime, however, there can be no assurance that our bid will be successful.

If we are not able to secure an active role in this new industry landscape, QIWI may lose the ability to generate volume and income directly related to TSUPIS business in Russia and acquiring services with winning payouts provided to sports betting companies in a bundle with TSUPIS operations. At the same time, part of the betting revenues generated from QIWI Wallet services, including commissions for betting accounts top-ups and winning payouts expected to be retained. This or any further significant change in betting legislation may negatively affect the payment volume, revenue, and margins of our Payment Services business, as well as overall usage of Qiwi Wallet.

The combined betting stream for 1H 2021 represented 27% (or RUB 223.3 billion) of PS Payment Volume and 37% (or RUB 3,368 million) of PS Payment Net Revenue. QIWI’s TSUPIS business and related acquiring services with winning payouts for 1H 2021 accounted 23% (or RUB 2,083 million) of PS Payment Net Revenue.

Dividends

In March 2021, the Board of Directors has approved a target dividend payout ratio for 2021. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2021.

Following the determination of 2Q 2021 financial results and taking into consideration the current operating environment, the Board of Directors approved a dividend of USD 30 cents per share. The dividend record date is September 7, 2021, and the Company intends to pay the dividend on September 9, 2021. The holders of ADSs will receive the dividend shortly thereafter.

The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target range provided, though the payout ratios for each of the quarters may vary and be outside of this range.

2021 Guidance⁴

QIWI revised its FY 2021 guidance:

•

Total Net Revenue is expected to decrease by 10% to 20% YoY;

•

Payment Services Net Revenue is expected to decrease by 10% to 20% YoY;

•

Adjusted Net Profit is expected to decrease by 15% to 30% YoY.

⁴	Guidance is provided in Russian rubles

Our outlook reflects (1) recent changes in the betting industry landscape described in the “Recent developments” section, (2) conservative projections on recovery of cross-borders operations, and (3) sale of stake in Tochka project, previously accounted for under the equity pick-up method.

Our current views and expectations only and are based on the trends we see as of the day of this press release. If such trends were to deteriorate or improve further the impact on our business and operations could deviate from than currently expected.

The Company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of the ongoing events becomes available.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss 2Q 2021 financial results today at 8:30 a.m. ET. Hosting the call will be Andrey Protopopov, CEO and Elena Nikonova, interim CFO. The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or for international callers by dialing +1 (201) 493-6780. A replay will be available at 11:30 a.m. ET and can be accessed by dialing +1 (844) 512-2921 or +1 (412) 317-6671 for international callers; the pin number is 13722017. The replay will be available until Thursday, September 2, 2021. The call will be webcast live from the Company’s website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

QIWI is a leading provider of next generation payment and financial services in Russia and the CIS. It has an integrated proprietary network that enables payment services across online, mobile and physical channels. It has deployed around 15.5 million virtual wallets, over 100,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 140 billion cash and electronic payments monthly connecting over 26 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods in order to pay for goods and services or transfer money across virtual or physical environments interchangeably.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total net revenue, adjusted net profit and net revenue yield, dividend payments, payment volume growth, growth of physical and virtual distribution channels, trends in each of our market verticals and statements regarding the development of our Factoring, Flocktory and Tochka businesses, the impact of the COVID-19 pandemic and related public health measures on our business, merchants, customers, and employees, the impact of the restrictions imposed on us by the CBR on December 7, 2020, in particular with respect to payments to foreign merchants, developments in the betting industry in the Russian Federation and its regulation, and others. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

Contact

Investor Relations

+357.25028091

ir@qiwi.com

QIWI plc.

Consolidated Statement of Financial Position

(in millions)


	As of December 31, 2020		As of June 30, 2021 (unaudited)		As of June 30, 2021 (unaudited)
	RUB		RUB		USD⁽¹⁾
Assets
Non-current assets
Property and equipment		1,893		1,681		23.2
Goodwill and other intangible assets		10,813		10,590		146.3
Investments in associates		1,635		0		0.0
Long-term debt securities and deposits		3,495		3,456		47.8
Long-term loans		214		257		3.5
Other non-current assets		112		120		1.7
Deferred tax assets		209		178		2.5

Total non-current assets		18,371		16,282		225.0

Current assets
Trade and other receivables		7,445		5,547		76.6
Short-term loans		5,799		5,615		77.6
Short-term debt securities and deposits		2,888		1,899		26.2
Prepaid income tax		197		207		2.9
Other current assets		1,202		875		12.1
Cash and cash equivalents		47,382		35,853		495.4
Assets held for sale		31		1,949		26.9

Total current assets		64,944		51,945		717.7

Total assets		83,315		68,227		942.7

Equity and liabilities
Equity attributable to equity holders of the parent
Share capital		1		1		0.0
Additional paid-in capital		1,876		1,876		25.9
Share premium		12,068		12,068		166.7
Other reserve		2,575		2,582		35.7
Retained earnings		14,602		16,730		231.2
Translation reserve		554		530		7.3

Total equity attributable to equity holders of the parent		31,676		33,787		466.8

Non-controlling interests		96		64		0.9

Total equity		31,772		33,851		467.7

Non-current liabilities
Long term debt		4,923		4,936		68.2
Long-term lease liability		762		737		10.2
Long-term customer accounts		36		—		—
Other non-current liabilities		44		49		0.7
Deferred tax liabilities		1,161		1,362		18.8

Total non-current liabilities		6,926		7,084		97.9

Current liabilities
Trade and other payables		29,528		17,397		240.4
Customer accounts and amounts due to banks		12,301		8,047		111.2
Short-term debt		1,640		638		8.8
Short-term lease liability		354		357		4.9
VAT and other taxes payable		147		108		1.5
Other current liabilities		647		745		10.3

Total current liabilities		44,617		27,292		377.1

Total equity and liabilities		83,315		68,227		942.7

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)


	Three months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB⁽¹⁾			RUB			USD⁽²⁾
*Continuing operations*
Revenue:		9,426			10,813			149.4
Payment processing fees		7,796			9,162			126.6
Interest revenue calculated using the effective interest rate		655			694			9.6
Fees from inactive accounts and unclaimed payments		501			413			5.7
Other revenue		474			544			7.5
Operating costs and expenses:		(5,716	)		(7,250	)		(100.2	)
Cost of revenue (exclusive of items shown separately below)		(3,501	)		(4,764	)		(65.8	)
Selling, general and administrative expenses		(510	)		(612	)		(8.5	)
Personnel expenses		(1,400	)		(1,525	)		(21.1	)
Depreciation and amortization		(268	)		(285	)		(3.9	)
Credit loss expense		(5	)		(64	)		(0.9	)
Impairment of non-current assets		(32	)		—			—

Profit from operations		3,710			3,563			49.2

Share of gain of an associate and a joint venture		107			141			1.9
Foreign exchange gain/(loss), net ⁽³⁾		(299	)		(50	)		(0.7	)
Interest income and expenses, net		(23	)		(15	)		(0.2	)
Other income and expenses, net		(7	)		(65	)		(0.9	)

Profit before tax from continuing operations		3,488			3,574			49.4

Income tax expense		(678	)		(941	)		(13.0	)

Net profit from continuing operations		2,810			2,633			36.4

Discontinued operations
Loss after tax from discontinued operations		(973	)		—			—

Net profit		1,837			2,633			36.4

Attributable to:
Equity holders of the parent		1,816			2,618			36.2
Non-controlling interests		21			15			0.2
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations		(33	)		(29	)		(0.4	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gains arising during the period, net of tax		40			—			—
Net gains recycled to profit or loss upon disposal		(25	)		—			—
Total other comprehensive income/(loss), net of tax		(18	)		(29	)		(0.4	)

Total comprehensive income, net of tax effect of nil		1,819			2,604			36.0

Attributable to:
Equity holders of the parent		1,798			2,589			35.8
Non-controlling interests		21			15			0.2
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent		29.24			41.94			0.58
Diluted, profit attributable to ordinary equity holders of the parent		29.13			41.92			0.58
Earnings per share for continuing operations
Basic, profit from continuing operations attributable to ordinary equity holders of the parent		44.88			41.94			0.58
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent		44.72			41.92			0.58

(1)	Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)	Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)


	Six months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB⁽¹⁾			RUB			USD⁽²⁾
*Continuing operations*
Revenue:		18,830			20,047			277.0
Payment processing fees		15,731			16,777			231.8
Interest revenue calculated using the effective interest rate		1,211			1,343			18.6
Fees from inactive accounts and unclaimed payments		991			854			11.8
Other revenue		897			1,073			14.8
Operating costs and expenses:		(11,920	)		(13,968	)		(193.0	)
Cost of revenue (exclusive of items shown separately below)		(7,354	)		(8,837	)		(122.1	)
Selling, general and administrative expenses		(1,204	)		(1,161	)		(16.0	)
Personnel expenses		(2,777	)		(3,230	)		(44.6	)
Depreciation and amortization		(528	)		(571	)		(7.9	)
Credit loss expense		(25	)		(157	)		(2.2	)
Impairment of non-current assets		(32	)		(12	)		(0.2	)

Profit from operations		6,910			6,079			84.0

Share of gain of an associate and a joint venture		239			306			4.2
Foreign exchange gain/(loss), net ⁽³⁾		(239	)		(42	)		(0.6	)
Interest income and expenses, net		(44	)		(27	)		(0.4	)
Other income and expenses, net		(23	)		(73	)		(1.0	)

Profit before tax from continuing operations		6,843			6,243			86.3

Income tax expense		(1,344	)		(1,656	)		(22.9	)

Net profit from continuing operations		5,499			4,587			63.4

Discontinued operations
Loss after tax from discontinued operations		(2,063	)		—			—

Net profit		3,436			4,587			63.4

Attributable to:
Equity holders of the parent		3,403			4,561			63.0
Non-controlling interests		33			26			0.4
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations		153			(24	)		(0.3	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gains arising during the period, net of tax		32			—			—
Net gains recycled to profit or loss upon disposal		(47	)		—			—
Total other comprehensive income/(loss), net of tax		138			(24	)		(0.3	)

Total comprehensive income, net of tax effect of nil		3,574			4,563			63.0

Attributable to:
Equity holders of the parent		3,530			4,537			62.7
Non-controlling interests		44			26			0.4
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent		54.78			73.07			1.01
Diluted, profit attributable to ordinary equity holders of the parent		54.58			73.02			1.01
Earnings per share for continuing operations
Basic, profit from continuing operations attributable to ordinary equity holders of the parent		87.97			73.07			1.01
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent		87.65			73.02			1.01

(1)	Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)	Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.

QIWI plc.

Consolidated Statement of Cash Flows

(in millions)


	Six months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB			RUB			USD⁽¹⁾
Operating activities
Profit before tax from continuing operations		6,843			6,243			86.3
Loss before tax from discontinued operations		(2,244	)		—			—
Profit before tax		4,599			6,243			86.3

Adjustments to reconcile profit before tax to net cash flows generated from operating activities
Depreciation and amortization		650			571			7.9
Foreign exchange loss, net		255			42			0.6
Interest income, net		(1,595	)		(1,069	)		(14.8	)
Credit loss expense		810			157			2.2
Share of gain of an associate and a joint venture		(239	)		(306	)		(4.2	)
Loss on forward contract to sell Sovest loans’ portfolio		658			—			—
Impairment of non-current assets		134			12			0.2
Other		33			13			0.2
Working capital adjustments:
Increase in trade and other receivables		1,218			1,687			23.3
Decrease/(increase) in other assets		(37	)		311			4.3
Decrease in customer accounts and amounts due to banks		(12,441	)		(4,257	)		(58.8	)
Decrease in accounts payable and accruals		(3,391	)		(12,028	)		(166.2	)
Decrease/(increase) in loans issued from banking operations		807			156			2.2

Cash used in operations		(8,539	)		(8,468	)		(117.0	)

Interest received		1,985			1,468			20.3
Interest paid		(332	)		(279	)		(3.9	)
Income tax paid		(805	)		(1,443	)		(19.9	)

Net cash flow used in operating activities		(7,691	)		(8,722	)		(120.5	)

Investing activities
Cash paid for acquisition		(66	)		(10	)		(0.1	)
Purchase of property and equipment		(90	)		(90	)		(1.2	)
Purchase of intangible assets		(111	)		(37	)		(0.5	)
Proceeds from sale of fixed and intangible assets		54			12			0.2
Loans issued		(11	)		(20	)		(0.3	)
Repayment of loans issued		—			11			0.2
Purchase of debt securities and deposits		(2,358	)		—			—
Proceeds from sale and redemption of debt securities		3,230			971			13.4

Net cash used in investing activities		648			837			11.6

Financing activities
Repayment of borrowings		(102	)		(1,004	)		(13.9	)
Payment of principal portion of lease liabilities		(46	)		(29	)		(0.4	)
Dividends paid to owners of the Group		(1,630	)		(2,446	)		(33.8	)
Dividends paid to non-controlling shareholders		(54	)		(54	)		(0.7	)

Net cash (used in)/generated from financing activities		(1,832	)		(3,533	)		(48.8	)

Net increase in cash and cash equivalents		(8,472	)		(11,529	)		(159.3	)

Cash and cash equivalents at the beginning of the period		42,101			47,382			654.7

Cash and cash equivalents at the end of the period		33,629			35,853			495.4

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

QIWI plc.

Reporting Segments Data


	Three months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB			RUB			USD ⁽¹⁾
Total Net Revenue		6,839			6,049			83.6

Payment Services		5,397			5,678			78.5
Consumer Financial Services		437			—			—
Rocketbank		509			—			—
Corporate and Other		496			371			5.1

Tochka		166			74			1.0
Factoring		204			181			2.5
Flocktory		117			127			1.8
Corporate and Other projects		8			(10	)		(0.1	)

Adjusted Net Profit		2,756			2,704			37.4

Payment Services		3,243			3,042			42.0
Consumer Financial Services		(134	)		—			—
Rocketbank		44			—			—
Corporate and Other		(397	)		(338	)		(4.7	)

Tochka		165			132			1.8
Factoring		94			54			0.7
Flocktory		(23	)		17			0.2
Corporate		(543	)		(512	)		(7.1	)
Other projects		(90	)		(28	)		(0.4	)

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

QIWI plc.

Reporting Segments Data


	Six months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB			RUB			USD ⁽¹⁾
Total Net Revenue		13,099			11,210			154.9

Payment Services		10,718			10,440			144.3
Consumer Financial Services		1,003			—			—
Rocketbank		532			—			—
Corporate and Other		846			770			10.6

Tochka		331			155			2.1
Factoring		305			375			5.2
Flocktory		206			260			3.6
Corporate and Other projects		4			(20	)		(0.3	)

Adjusted Net Profit		4,510			4,765			65.8

Payment Services		6,294			5,522			76.3
Consumer Financial Services		(656	)		—			—
Rocketbank		(616	)		—			—
Corporate and Other		(512	)		(757	)		(10.5	)

Tochka		308			323			4.5
Factoring		92			34			0.5
Flocktory		12			(103	)		(1.4	)
Corporate		(782	)		(954	)		(13.2	)
Others		(142	)		(57	)		(0.8	)

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of Total Net Revenue, PS Payment Net Revenue and PS Other Net Revenue; Net Profit, in the case of Adjusted EBITDA; and Adjusted Net Profit, or earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Total Net Revenue, PS Payment Net Revenue and PS Other Net Revenue and Net Profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.

PS Payment Net Revenue is the Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, betting, online stores, game developers, software producers, coupon websites, tickets and numerous other merchants. Financial Services payment net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittance payment net revenue primarily consists of fees charged for transferring funds via money remittance companies, card-to-card transfers and certain wallet-to-wallet transfers. Telecom payment net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others. PS Other Net Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)


	Three months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB⁽¹⁾			RUB			USD⁽²⁾
Revenue⁽³⁾		10,580			10,813			149.4
Minus: Cost of revenue (exclusive of depreciation and amortization)⁽⁴⁾		3,741			4,764			65.8

Total Net Revenue		6,839			6,049			83.6

Segment Net Revenue
Payment Services Segment Revenue		8,828			10,145			140.2
PS Payment Revenue ⁽⁵⁾		7,796			9,162			126.6
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)⁽⁶⁾		3,187			4,229			58.4

PS Payment Adjusted Net Revenue		4,609			4,933			68.2

PS Other Revenue ⁽⁷⁾		1,032			983			13.6
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)⁽⁸⁾		244			238			3.3

PS Other Adjusted Net Revenue		788			745			10.3

Payment Services Segment Net Revenue		5,397			5,678			78.5

Consumer Financial Services Segment Revenue		486			—			—
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)		49			—			—

Consumer Financial Services Segment Net Revenue		437			—			—

Rocketbank Revenue		688			—			—
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)		179			—			—

Rocketbank Net Revenue		509			—			—

Corporate and Other Category Revenue		578			668			9.2
Minus: Cost of CO revenue (exclusive of depreciation and amortization)		82			297			4.1

Corporate and Other Category Net Revenue		496			371			5.1

Total Segment Net Revenue		6,839			6,049			83.6

Net Profit		1,837			2,633			36.4

Plus:
Depreciation and amortization		331			285			3.9
Other income and expenses, net		7			65			0.9
Foreign exchange (gain)/loss, net		292			50			0.7
Share of gain of an associate and a joint venture		(107	)		(141	)		(1.9	)
Income tax expenses		751			941			13.0
Offering expenses		—			—			—
Loss from sale of Sovest loans’ portfolio		658			—
Share-based payment expenses		(11	)		2			0.0
Impairment of non-current assets		114			—			—

Adjusted EBITDA		3,905			3,850			53.2

Adjusted EBITDA margin		57.1	%		63.7	%		63.7	%
Net profit		1,837			2,633			36.4
Fair value adjustments recorded on business combinations and their amortization⁽⁹⁾		85			83			1.1
Impairment of non-current assets		114			—			—
Share-based payment expenses		(11	)		2			0.0
Offering expenses		—			—			—
Loss from sale of Sovest loans’ portfolio		658						—
Effect of taxation of the above items		73			(14	)		(0.2	)

Adjusted Net Profit		2,756			2,704			37.4

Adjusted Net Profit per share:
Basic		44.35			43.32			0.60
Diluted		44.19			43.30			0.60
Weighted-average number of shares used in computing Adjusted Net Profit per share
Basic		62,147			62,424			62,424
Diluted		62,362			62,446			62,446

(1)	The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)	Including revenue from discontinued operations of RUB 1,154 million for the second quarter ended June 30, 2020.

(4)	Including cost of revenue from discontinued operations of RUB 240 million for second quarter ended June 30, 2020.

(5)	PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.

(6)	Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.

(7)	PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

(8)	Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: costs of call-centers and advertising commissions.

(9)	Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)


	Six months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB⁽¹⁾			RUB			USD⁽²⁾
Revenue ⁽³⁾		21,190			20,047			277.0
Minus: Cost of revenue (exclusive of depreciation and amortization) ⁽⁴⁾		8,091			8,837			122.1

Total Net Revenue		13,099			11,210			154.9

Segment Net Revenue
Payment Services Segment Revenue		17,816			18,692			258.3
PS Payment Revenue ⁽⁵⁾		15,731			16,777			231.8
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)⁽⁶⁾		6,528			7,775			107.4

PS Payment Adjusted Net Revenue		9,203			9,002			124.4

PS Other Revenue ⁽⁷⁾		2,085			1,915			26.5
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)⁽⁸⁾		570			476			6.6

PS Other Adjusted Net Revenue		1,514			1,439			19.9

Payment Services Segment Net Revenue		10,718			10,440			144.3

Consumer Financial Services Segment Revenue		1,126			—			—
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)		123			—			—

Consumer Financial Services Segment Net Revenue		1,003			—			—

Rocketbank Revenue		1,125			—			—
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)		593			—			—

Rocketbank Net Revenue		532			—			—

Corporate and Other Category Revenue		1,123			1,355			18.7
Minus: Cost of CO revenue (exclusive of depreciation and amortization)		277			585			8.1

Corporate and Other Category Net Revenue		846			770			10.6

Total Segment Net Revenue		13,099			11,210			154.9

Net Profit		3,436			4,587			63.4

Plus:
Depreciation and amortization		650			571			7.9
Other income and expenses, net		23			73			1.0
Foreign exchange (gain)/loss, net		255			42			0.6
Share of gain of an associate and a joint venture		(239	)		(306	)		(4.2	)
Income tax expenses		1,163			1,656			22.9
Offering expenses		10			—			—
Loss from sale of Sovest loans’ portfolio		658			—
Share-based payment expenses		48			8			0.1
Impairment of non-current assets		134			12			0.2

Adjusted EBITDA		6,203			6,670			92.2

Adjusted EBITDA margin		47.4	%		59.5	%		59.5	%
Net profit		3,436			4,587			63.4
Fair value adjustments recorded on business combinations and their amortization⁽⁹⁾		169			168			2.3
Impairment of non-current assets		134			12			0.2
Share-based payment expenses		48			8			0.1
Offering expenses		10			—			—
Loss from sale of Sovest loans’ portfolio		658						—
Effect of taxation of the above items		55			(10	)		(0.1	)

Adjusted Net Profit		4,510			4,765			65.8

Adjusted Net Profit per share:
Basic		72.58			76.34			1.05
Diluted		72.31			76.29			1.05
Weighted-average number of shares used in computing Adjusted Net Profit per share
Basic		62,137			62,418			62,418
Diluted		62,367			62,459			62,459

(1)	The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)	Including revenue from discontinued operations of RUB 2,360 million for the six months ended June 30, 2020.

(4)	Including cost of revenue from discontinued operations of RUB 737 million for the six months ended June 30, 2020.

(5)	PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.

(6)	Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.

(7)	PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

(8)	Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: costs of call-centers and advertising commissions.

(9)	Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.

QIWI plc.

Other Operating Data


	Three months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB			RUB			USD ⁽¹⁾
Payment Services Segment key operating metrics
Payment Volume (billion)⁽²⁾		346.8			457.6			6.3

E-commerce		100.2			104.3			1.4
Financial services		53.7			67.8			0.9
Money remittances		142.2			243.7			3.4
Telecom		42.6			28.9			0.4
Other		8.1			12.9			0.2

Payment Net Revenue (million)⁽³⁾		4,608.4			4,932.8			68.2

E-commerce		2,687.7			2,292.6			31.7
Financial services		313.6			161.5			2.2
Money remittances		1,317.5			2,337.0			32.3
Telecom		238.7			124.4			1.7
Other		51.0			17.2			0.2

Payment Net Revenue Yield⁽⁴⁾		1.33	%		1.08	%		1.08	%

E-commerce		2.68	%		2.20	%		2.20	%
Financial services		0.58	%		0.24	%		0.24	%
Money remittances		0.93	%		0.96	%		0.96	%
Telecom		0.56	%		0.43	%		0.43	%
Other		0.63	%		0.13	%		0.13	%

Payment Services Segment Net Revenue Yield		1.56	%		1.24	%		1.24	%
Active kiosks and terminals (units)⁽⁵⁾		118,455			100,324			100,324
Active Qiwi Wallet accounts (million)⁽⁶⁾		20.9			15.5			15.5
PS Payment volume per active QIWI Wallet account (RUB thousand)		16.6			29.5			12.9

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(2)

Payment Services Payment Volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants or other customers included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in Contact and Rapida may differ from the methodology used by QIWI. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of Contact and Rapida will be brought in conformity with the methodology used by QIWI.

(3)	PS Payment Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)	PS Payment Net Revenue Yield is defined as PS Payment net revenue divided by Payment Services payment segment volume.

(5)

(6)	Active Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.

QIWI plc.

Other Operating Data


	Six months ended (unaudited)
	June 30, 2020			June 30, 2021			June 30, 2021
	RUB			RUB			USD ⁽¹⁾
Payment Services Segment key operating metrics
Payment Volume (billion)⁽²⁾		717.1			841.6			11.6

E-commerce		209.4			193.6			2.7
Financial services		121.3			128.7			1.8
Money remittances		286.5			433.8			6.0
Telecom		82.7			60.8			0.8
Other		17.3			24.7			0.3

Payment Net Revenue (million)⁽³⁾		9,203.1			9,001.2			124.4

E-commerce		5,400.5			4,074.6			56.3
Financial services		600.1			328.1			4.5
Money remittances		2,668.5			4,236.8			58.5
Telecom		430.1			276.4			3.8
Other		103.9			85.3			1.2

Payment Net Revenue Yield⁽⁴⁾		1.28	%		1.07	%		1.07	%

E-commerce		2.58	%		2.10	%		2.10	%
Financial services		0.49	%		0.25	%		0.25	%
Money remittances		0.93	%		0.98	%		0.98	%
Telecom		0.52	%		0.45	%		0.45	%
Other		0.60	%		0.34	%		0.34	%



Payment Services Segment Net Revenue Yield		1.49	%		1.24	%		1.24	%
Active kiosks and terminals (units)⁽⁵⁾		118,455			100,324			100,324
Active Qiwi Wallet accounts (million)⁽⁶⁾		20.9			15.5			15.5
PS Payment volume per active QIWI Wallet account (RUB thousand)		34.3			54.2			19.9

(1)	Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(2)

(3)	PS Payment Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)	PS Payment Net Revenue Yield is defined as PS Payment net revenue divided by Payment Services payment segment volume.

(5)

(6)	Active Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.

EX-99.2

Exhibit 99.2

QIWI plc

Unaudited interim condensed consolidated

financial statements

June 30, 2021

QIWI plc

Unaudited interim condensed consolidated financial statements

June 30, 2021

Content


Report of Independent Registered Public Accounting Firm			F-1
Interim condensed consolidated statement of financial position			F-2
Interim condensed consolidated statement of comprehensive income			F-3
Interim condensed consolidated statement of cash flows			F-4
Interim condensed consolidated statement of changes in equity			F-5
Notes to interim condensed consolidated financial statements			F-7

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Qiwi plc

Results of Review of Interim Financial Statements

We have reviewed the accompanying interim condensed consolidated statement of financial position of Qiwi plc and subsidiaries (“the Group”) as of June 30, 2021, the related interim condensed consolidated statements of comprehensive income for the six and three-month periods ended June 30, 2021 and 2020, interim condensed consolidated statements of cash flows and changes in equity for the six-month periods ended June 30, 2021 and 2020, and the related notes (collectively referred to as the “interim condensed consolidated financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the interim condensed consolidated financial statements for them to be in conformity with International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Board.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Group as of December 31, 2020, the related consolidated statements of comprehensive income, consolidated statements of cash flows and changes in equity for the year then ended, and the related notes (not presented herein); and in our report dated April 15, 2021, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Group’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLC

Moscow, Russia

August 19, 2021

F-1

QIWI plc

Interim condensed consolidated statement of financial position

June 30, 2021

(in millions of rubles)


	Notes		As of December 31, 2020		As of June 30, 2021 (unaudited)
Assets
Non-current assets
Property and equipment				1,893		1,681
Goodwill and other intangible assets				10,813		10,590
Investments in associates		13		1,635		—
Long-term debt securities and deposits		22		3,495		3,456
Long-term loans		6, 22		214		257
Other non-current assets				112		120
Deferred tax assets				209		178

Total non-current assets				18,371		16,282

Current assets
Trade and other receivables		7		7,445		5,547
Short-term loans		6		5,799		5,615
Short-term debt securities and deposits		22		2,888		1,899
Prepaid income tax				197		207
Other current assets		9		1,202		875
Cash and cash equivalents		8		47,382		35,853
Assets held for sale		4		31		1,949

Total current assets				64,944		51,945

Total assets				83,315		68,227


Equity and liabilities
Equity attributable to equity holders of the parent
Share capital				1		1
Additional paid-in capital				1,876		1,876
Share premium				12,068		12,068
Other reserves				2,575		2,582
Retained earnings				14,602		16,730
Translation reserve				554		530

Total equity attributable to equity holders of the parent				31,676		33,787
Non-controlling interests				96		64

Total equity				31,772		33,851


Non-current liabilities
Long-term debt		12		4,923		4,936
Long-term lease liabilities		14		762		737
Long-term customer accounts		11		36		—
Other non-current liabilities				44		49
Deferred tax liabilities				1,161		1,362

Total non-current liabilities				6,926		7,084

Current liabilities
Trade and other payables		10		29,528		17,397
Customer accounts and amounts due to banks		11		12,301		8,047
Short-term debt		12		1,640		638
Short-term lease liabilities		14		354		357
VAT and other taxes payable				147		108
Other current liabilities		9		647		745

Total current liabilities				44,617		27,292

Total equity and liabilities				83,315		68,227

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-2

QIWI plc

Interim condensed consolidated statement of comprehensive income

June 30, 2021

(in millions of rubles)


			Unaudited
			Three months ended			Six months ended			Three months ended			Six months ended
	Notes		June 30, 2020 (restated)*						June 30, 2021
*Continuing operations*
Revenue:				9,426			18,830			10,813			20,047

Payment processing fees				7,796			15,731			9,162			16,777
Interest revenue calculated using the effective interest rate		15		655			1,211			694			1,343
Fees from inactive accounts and unclaimed payments				501			991			413			854
Other revenue		15		474			897			544			1,073

Operating costs and expenses:				(5,716	)		(11,920	)		(7,250	)		(13,968	)

Cost of revenue (exclusive of items shown separately below)		16		(3,501	)		(7,354	)		(4,764	)		(8,837	)
Selling, general and administrative expenses		17		(510	)		(1,204	)		(612	)		(1,161	)
Personnel expenses				(1,400	)		(2,777	)		(1,525	)		(3,230	)
Depreciation and amortization				(268	)		(528	)		(285	)		(571	)
Credit loss expense		6, 7, 8		(5	)		(25	)		(64	)		(157	)
Impairment of non-current assets				(32	)		(32	)		—			(12	)

Profit from operations				3,710			6,910			3,563			6,079

Share of gain/(loss) of an associate and a joint venture		13		107			239			141			306
Foreign exchange gain/(loss), net				(299	)		(239	)		(50	)		(42	)
Interest income and expenses, net				(23	)		(44	)		(15	)		(27	)
Other income and expenses, net				(7	)		(23	)		(65	)		(73	)

Profit before tax from continuing operations				3,488			6,843			3,574			6,243
Income tax expense		19		(678	)		(1,344	)		(941	)		(1,656	)

Net profit from continuing operations				2,810			5,499			2,633			4,587

Discontinued operations
Loss after tax from discontinued operations		4		(973	)		(2,063	)		—			—

Net profit				1,837			3,436			2,633			4,587

Attributable to:
Equity holders of the parent				1,816			3,403			2,618			4,561
Non-controlling interests				21			33			15			26

Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations				(33	)		153			(29	)		(24	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gains arising during the period, net of tax				40			32			—			—
Net gains recycled to profit or loss upon disposal				(25	)		(47	)		—			—
Total other comprehensive income/(loss), net of tax				(18	)		138			(29	)		(24	)

Total comprehensive income, net of tax				1,819			3,574			2,604			4,563

Attributable to:
Equity holders of the parent				1,798			3,530			2,589			4,537
Non-controlling interests				21			44			15			26
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent				29.24			54.78			41.94			73.07
Diluted, profit attributable to ordinary equity holders of the parent				29.13			54.58			41.92			73.02
Earnings per share for continuing operations
Basic, profit from continuing operations attributable to ordinary equity holders of the parent				44.88			87.97			41.94			73.07
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent				44.72			87.65			41.92			73.02

*	Amounts do not correspond with the previously presented ones due to discontinued operations (please refer to Note 4) and foreign exchange gain/(loss) netting (please refer to Note 2.3)

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-3

QIWI plc

Interim condensed consolidated statement of cash flows

June 30, 2021

(in millions of rubles)


			Six months ended (unaudited)
	Notes		June 30, 2020			June 30, 2021
Operating activities
Profit before tax from continuing operations				6,843			6,243
Loss before tax from discontinued operations		4		(2,244	)		—

Profit before tax				4,599			6,243
Adjustments to reconcile profit before tax to net cash flows (used in) /generated from operating activities:
Depreciation and amortization				650			571
Foreign exchange loss, net				255			42
Interest income, net		15		(1,595	)		(1,069	)
Credit loss expense		4, 6, 7, 8		810			157
Share of (gain) / loss of an associate and a joint venture		13		(239	)		(306	)
Loss on forward contract to sell Sovest loans’ portfolio		4		658			—
Impairment of non-current assets				134			12
Other				33			13
Changes in operating assets and liabilities:
Decrease in trade and other receivables				1,218			1,687
(Increase)/decrease in other assets				(37	)		311
Decrease in customer accounts and amounts due to banks				(12,441	)		(4,257	)
Decrease in accounts payable and accruals				(3,391	)		(12,028	)
Decrease in loans issued from banking operations				807			156

Cash used in operations				(8,539	)		(8,468	)
Interest received				1,985			1,468
Interest paid				(332	)		(279	)
Income tax paid				(805	)		(1,443	)

Net cash flow used in operating activities				(7,691	)		(8,722	)

Investing activities
Cash paid for acquisitions				(66	)		(10	)
Purchase of property and equipment				(90	)		(90	)
Purchase of intangible assets				(111	)		(37	)
Proceeds from sale of fixed and intangible assets				54			12
Loans issued				(11	)		(20	)
Repayment of loans issued				—			11
Purchase of debt securities and deposits				(2,358	)		—
Proceeds from sale and redemption of debt instruments				3,230			971

Net cash flow received from investing activities				648			837

Financing activities
Repayment of borrowings				(102	)		(1,004	)
Payment of principal portion of lease liabilities				(46	)		(29	)
Dividends paid to owners of the Group		18		(1,630	)		(2,446	)
Dividends paid to non-controlling shareholders				(54	)		(54	)

Net cash flow used in financing activities				(1,832	)		(3,533	)
Effect of exchange rate changes on cash and cash equivalents				403			(111	)

Net decrease in cash and cash equivalents				(8,472	)		(11,529	)
Cash and cash equivalents at the beginning of the period		8		42,101			47,382

Cash and cash equivalents at the end of the period		8		33,629			35,853

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-4

QIWI plc

Interim condensed consolidated statement of changes in equity

June 30, 2021

(in millions of rubles, except per share data)


	Notes		Attributable to equity holders of the parent																				Non-controlling interests			Total equity
			Share capital				Additional paid-in capital		Share premium		Other reserves			Retained earnings			Translation reserve			Total
			Number of shares issued and outstanding		Amount		Additional paid-in capital		Share premium		Other reserves			Retained earnings			Translation reserve			Total
Balance as of December 31, 2020				62,378,832		1		1,876		12,068		2,575			14,602			554			31,676			96			31,772

Profit for the period				—		—		—		—		—			4,561			—			4,561			26			4,587
Other comprehensive income:
Foreign currency translation				—		—		—		—		—			—			(24	)		(24	)		—			(24	)

Total comprehensive income				—		—		—		—		—			4,561			(24	)		4,537			26			4,563

Share-based payments				—		—		—		—		8			—			—			8			—			8
Exercise of options				52,002		—		—		—		—			—			—			—			—			—
Dividends		18		—		—		—		—		—			(2,433	)					(2,433	)		—			(2,433	)
Dividends to non-controlling interests				—		—		—		—		—			—			—			—			(58	)		(58	)
Other				—		—		—		—		(1	)		—			—			(1	)		—			(1	)

Balance as of June 30, 2021 (unaudited)				62,430,834		1		1,876		12,068		2,582			16,730			530			33,787			64			33,851

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-5

QIWI plc

Interim condensed consolidated statement of changes in equity (continued)

June 30, 2021

(in millions of rubles, except per share data)


	Notes		Attributable to equity holders of the parent																			Non-controlling interests			Total equity
			Share capital				Additional paid-in capital		Share premium		Other reserves			Retained earnings			Translation reserve		Total
			Number of shares issued and outstanding		Amount		Additional paid-in capital		Share premium		Other reserves			Retained earnings			Translation reserve		Total
Balance as of December 31, 2019				62,092,835		1		1,876		12,068		2,576			10,557			289		27,367			70			27,437

Profit for the period				—		—		—		—		—			3,403			—		3,403			33			3,436
Other comprehensive income:
Foreign currency translation				—		—		—		—		—			—			142		142			11			153
Debt instruments at FVOCI				—		—		—		—		(15	)		—			—		(15	)		—			(15	)

Total comprehensive income				—		—		—		—		(15	)		3,403			142		3,530			44			3,574

Share-based payments				—		—		—		—		48			—			—		48			—			48
Exercise of options				79,938		—		—		—		—			—			—		—			—			—
Dividends		18		—		—		—		—		—			(1,655	)				(1,655	)					(1,655	)
Dividends to non-controlling interests				—		—		—		—		—			—			—		—			(54	)		(54	)
Other				—		—		—		—		(9	)		—			—		(9	)		—			(9	)

Balance as of June 30, 2020 (unaudited)				62,172,773		1		1,876		12,068		2,600			12,305			431		29,281			60			29,341

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-6

QIWI plc

Notes to interim condensed consolidated financial statements

1.	Corporate Information and description of business

The interim condensed consolidated financial statements of QIWI plc (hereinafter “the Company”) and its subsidiaries (collectively “the Group”) for the six months ended June 30, 2021 were authorized for issue on August 12, 2021.

The Company was registered on February 26, 2007 as a limited liability Company OE Investments in Cyprus under the Cyprus Companies Law, Cap. 113. The registered office of the Company is Kennedy 12, Kennedy Business Centre, 2nd Floor, P.C.1087, Nicosia, Cyprus. On September 13, 2010 the directors of the Company resolved to change the name of the Company from OE Investments Limited to QIWI Limited and later to QIWI plc.

Sergey Solonin is the ultimate controlling shareholder of the Group as of June 30, 2021.

Information on the Company’s principal subsidiaries is disclosed in Note 3.

2.	Basis of preparation and changes to the Group’s accounting policies

2.1. Basis of preparation

The interim condensed consolidated financial statements for the six months ended June 30, 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The condensed consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 2020.

2.2. New standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial

statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2020, except for the adoption of new standards effective as of January 1, 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The following amended standards and interpretations became effective for the Group from January 1, 2021, but did not have any material impact on the financial statements of the Group:

•

Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest rate benchmark (IBOR) reform.

•

Amendments to IFRS 16: Covid-19 Related Rent Concessions beyond June 30, 2021.

F-7

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

2.	Basis of preparation and changes to the Group’s accounting policies (continued)

2.3. Changes in presentation

As at December 31, 2020, the Group started presenting foreign exchange gains and losses on a net basis. The change in presentation was made to make the financial statements more comparable with the industry peers and to provide fair presentation of these amounts.

The effects of the restatement on the previously reported amounts in the condensed consolidated statement of comprehensive income are set out below:


	For the three months ended June 30, 2020						For the six months ended June 30, 2020
	As previously reported			Restated			As previously reported			Restated
Foreign exchange gain		743			—			355			—
Foreign exchange loss		(1,042	)		—			(594	)		—
Foreign exchange gain, net		—			(299	)		—			(239	)

F-8

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

3.	Group structure

The interim condensed consolidated IFRS financial statements include the assets, liabilities and financial results of the Company and its subsidiaries. The subsidiaries are listed below:


		Ownership interest
Subsidiary	Main activity	As of December 31, 2020			As of June 30, 2021
JSC QIWI (Russia)	Operation of electronic payment kiosks		100	%		100	%
QIWI Bank JSC (Russia)	Maintenance of electronic payment systems, money transfer, consumer and SME financial services		100	%		100	%
QIWI Payments Services Provider Ltd (UAE)	Operation of on-line payments		100	%		100	%
QIWI International Payment System LLC (USA)	Operation of electronic payment kiosks		100	%		100	%
Qiwi Kazakhstan LP (Kazakhstan)	Operation of electronic payment kiosks		100	%		100	%
JLLC OSMP BEL (Belarus)	Operation of electronic payment kiosks		51	%		51	%
QIWI - M S.R.L. (Moldova)	Operation of electronic payment kiosks		51	%		51	%
Attenium LLC (Russia)¹	Management services		100	%		—
Postomatnye Tekhnologii LLC (Russia)¹	Logistic		100	%		—
Future Pay LLC (Russia)¹	Operation of on-line payments		100	%		—
Qiwi Blockchain Technologies LLC (Russia)	Software development		100	%		100	%
Factoring PLUS LLC (Russia)	Software development		51	%		51	%
ContactPay Solution (United Kingdom)	Operation of on-line payments		100	%		100	%
Rocket Universe LLC (Russia)	Software development		100	%		100	%
Billing Online Solutions LLC (Russia)	Software development		100	%		100	%
Flocktory Ltd (Cyprus)	Holding company		100	%		100	%
Flocktory Spain S.L. (Spain)	SaaS platform for customer lifecycle management and personalization		100	%		100	%
FreeAtLast LLC (Russia)	SaaS platform for customer lifecycle management and personalization		100	%		100	%
SETTE FZ-LLC (UAE)	Payment Services Provider		100	%		100	%
LALIRA DMCC (UAE)	Payment Services Provider		100	%		100	%
MFC «Polet Finance» LLC(Russia)²	Retail financial services		—			100	%
QIWI Finance LLC (Russia)	Financing management		100	%		100	%
QPCD LLC (RF)³	Software development		—			51	%

Associate and Joint Venture
QIWI Platform LLC (Russia)	Software development		60	%		60	%
JSC Tochka (Russia)	Digital services for banks		40	%		40	%
Tochka Investitsii LLC (Russia)³	Digital services for banks		—			40	%

¹	The Entities were liquidated during 2021

²	The Entity was established during 2021

³	The Entities were acquired during 2021 for insignificant consideration

F-9

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

4.	Acquisitions, disposals and discontinued operations

2021

Tochka sale

In June 2021, the Group decided to enter into an agreement with Otkritie Bank to sell its 40% stake (45% economic interest) in the capital of Tochka associate. By June 30, 2021, the carrying value of investment in associate in the amount of 1,949 had been reclassified to assets held for sale. From the date of classification into assets held for sale the Group discontinued the use of the equity method of accounting and started measuring it at the lower of it carrying amount and fair value less costs to sell. No impairment was recognized upon reclassification. The price the Group is due to receive consists of two elements: i) a fixed amount of 4,947, and; ii) an amount contingent on Tochka’s earnings for the year 2021.

The sale is expected to be completed in third quarter of the year 2021.

2020

Rocketbank wind down

In March 2020, the Board of Directors decided to wind down the Rocketbank project and had finished the process by the end of third quarter 2020. Since that date the Rocketbank’s operations are considered as discontinued.

Rocketbank represented the entire Group’s respective operating segment. Assets that remained after Rocketbank liquidation were transferred to Payment Services segment.

SOVEST disposal

In the second quarter of 2020 the Group made a decision to dispose its SOVEST project.

In June 2020, the Group entered into the framework agreement and several related binding agreements to sell certain specific SOVEST project assets to an unrelated party. As a part of the transaction, the Group assigned the portfolio of SOVEST instalment card loans as well as transferred respective brands and domains. Since then, SOVEST was classified as a disposal group held for sale and as a discontinued operation.

As a part of the transaction, the Group was to dismiss most SOVEST employees and the buyer extended job offers to certain SOVEST employees and reimbursed to the Group corresponding redundancy costs.

The sale of SOVEST assets was completed in July 2020, resulting in a pre-tax loss on disposal of 712.

SOVEST project represented the entire Group’s Consumer Financial Services operating segment.

F-10

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

4.	Acquisitions, disposals and discontinued operations (continued)

The results of discontinued operations for the reporting periods are presented below:


	Three months ended June 30, 2020									Six months ended June 30, 2020
	Rocketbank			SOVEST			Total			Rocketbank			SOVEST			Total
Revenue:		688			466			1,154			1,125			1,235			2,360
Interest revenue calculated using the effective interest rate		52			161			213			222			495			717
Other revenue		636			305			941			903			740			1,643

Operating costs and expenses:		(660	)		(733	)		(1,393	)		(1,865	)		(2,044	)		(3,909	)

Cost of revenue (exclusive of items shown separately below)		(178	)		(62	)		(240	)		(592	)		(145	)		(737	)
Selling, general and administrative expenses		(119	)		(66	)		(185	)		(318	)		(401	)		(719	)
Personnel expenses		(309	)		(229	)		(538	)		(843	)		(601	)		(1,444	)
Depreciation and amortization		(44	)		(19	)		(63	)		(84	)		(38	)		(122	)
Credit loss (expense)/income		4			(289	)		(285	)		6			(791	)		(785	)
Impairment of non-current assets		(14	)		(68	)		(82	)		(34	)		(68	)		(102	)

Profit/(Loss) from operations		28			(267	)		(239	)		(740	)		(809	)		(1,549	)

Loss on forward contract to sell Sovest loans’ portfolio		—			(658	)		(658	)		—			(658	)		(658	)
Foreign exchange gain and loss, net		7			—			7			(16	)		—			(16	)
Interest income and expenses, net		(8	)		(2	)		(10	)		(17	)		(4	)		(21	)

Profit/(Loss) before tax from discontinued operations		27			(927	)		(900	)		(773	)		(1,471	)		(2,244	)
Income tax benefit/(expense) (Note 19)		(30	)		(43	)		(73	)		112			69			181

Net loss from discontinued operations		(3	)		(970	)		(973	)		(661	)		(1,402	)		(2,063	)

Earnings per share for discontinued operations
Basic, loss from discontinued operations attributable to ordinary equity holders of the parent								(15.64	)								(33.19	)
Diluted, loss from discontinued operations attributable to ordinary equity holders of the parent								(15.59	)								(33.07	)

Impairment of non-current assets

Immediately before the classification of SOVEST as discontinued operations, the recoverable amount was estimated for certain items of Intangible assets and impairment loss was identified and recognized in June 2020 in the amount of 68 to reduce the carrying amount of the assets in the disposal group to their fair values less cost to sell. This impairment of non-current assets was recognized in discontinued operations in the statement of profit or loss.

The net cash flows incurred by the discontinued operations are, as follows:


	Six months ended June 30, 2020
	Rocketbank			SOVEST			Total
Operating		(12,835	)		822			(12,013	)
Investing		1,256			(7	)		1,249
Financing		(42	)		(14	)		(56	)

Net cash (outflow)/inflow		(11,621	)		801			(10,820	)

F-11

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments

The Chief executive officer (CEO) of the Group is considered as the chief operating decision maker of the Group (CODM). In reviewing the operational performance of the Group and allocating resources, the CODM reviews selected items of each segment’s statement of comprehensive income.

In determining that the CODM was the CEO, the Group considered its responsibilities as well as the following factors:

•

The CEO determines compensation of other executive officers while the Group’s board of directors approves corporate key performance indicators (KPIs) and total bonus pool for those executive officers. In case of underperformance of corporate KPIs a right to make a final decision on bonus pool distribution is left with the Board of directors (BOD);

•

The CEO is actively involved in the operations of the Group and regularly chairs meetings on key projects of the Group; and

•

The CEO regularly reviews the financial and operational reports of the Group. These reports primarily include segment net revenue, segment profit before tax and segment net profit for the Group as well as certain operational data.

The financial data is presented on a combined basis for all key subsidiaries and associates representing the segment net revenue, segment profit before tax and segment net profit. The Group measures the performance of its operating segments by monitoring: segment net revenue, segment profit before tax and segment net profit. Segment net revenue is a measure of profitability defined as the segment revenues less segment direct costs. The Group does not monitor balances of assets and liabilities by segments as the CODM considers they have no impact on decision-making.

The Group has identified its operating segments based on the types of products and services the Group offers. The CODM reviews segment net revenue, segment profit before tax and segment net profit separately for each of the following reportable segments: Payment Services, Consumer Financial Services and Rocketbank:

•

Payment Services (PS), operating segment that generates revenue through operations of the payment processing system offered to the Group’s customers through a diverse range of channels and interfaces;

•

Consumer Financial Services (CFS), operating segment that generates revenue through financial services rendered to individuals, presented by SOVEST installment card project;

•

Rocketbank (RB), operating segment that generates revenue through offering digital banking service including debit cards and deposits to retail customers.

For the purpose of management reporting, expenses related to corporate back-office operations were not allocated to any operating segment and are presented separately to the CODM. Results of other operating segments and corporate expenses are included in Corporate and Other (CO) category for the purpose of segment reporting.

F-12

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

Management reporting is different from IFRS, because it does not include certain IFRS adjustments, which are not analyzed by the CODM in assessing the operating performance of the business. The adjustments affect such major areas as share-based payments, offering expenses, the effect of disposal of subsidiaries and fair value adjustments, such as amortization and impairment, as well as non-recurring items that occur from time to time and are evaluated for adjustment as and when they occur. The tax effect of these adjustments is also excluded from management reporting.

The segments’ statement of comprehensive income for the six months ended June 30, 2021, as presented to the CODM are presented below:


	Six months ended June 30, 2021
	PS			CO			Total
Revenue		18,692			1,355			20,047
Cost of revenue		(8,252	)		(585	)		(8,837	)

Segment net revenue		10,440			770			11,210

Overheads		(3,011	)		(1,372	)		(4,383	)
Credit loss expense		(39	)		(118	)		(157	)
Depreciation, amortization and impairment		(342	)		(61	)		(403	)
Share of gain of an associate and a joint venture		—			306			306
Other gains and losses		(76	)		(66	)		(142	)

Segment profit/(loss) before tax		6,972			(541	)		6,431

Income tax		(1,450	)		(216	)		(1,666	)

Segment net profit/(loss)		5 522			(757	)		4,765

The segments’ statement of comprehensive income for the three months ended June 30, 2021, as presented to the CODM are presented below:


	Three months ended June 30, 2021
	PS			CO			Total
Revenue		10,145			668			10,813
Cost of revenue		(4,467	)		(297	)		(4,764	)

Segment net revenue		5,678			371			6,049

Overheads		(1,500	)		(637	)		(2,137	)
Credit loss expense		(47	)		(17	)		(64	)
Depreciation, amortization and impairment		(170	)		(30	)		(200	)
Share of gain of an associate and a joint venture		—			141			141
Other gains and losses		(88	)		(42	)		(130	)

Segment profit/(loss) before tax		3,873			(214	)		3,659

Income tax		(831	)		(124	)		(955	)

Segment net profit/(loss)		3,042			(338	)		2,704

F-13

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

The segments’ statement of comprehensive income for the six months ended June 30, 2020, as presented to the CODM are presented below:


	Six months ended June 30, 2020
	PS			CFS			RB			CO			Total
Revenue		17,816			1,126			1,125			1,123			21,190
Cost of revenue		(7,098	)		(123	)		(593	)		(277	)		(8,091	)

Segment net revenue		10,718			1,003			532			846			13,099

Overheads		(2,596	)		(983	)		(1,136	)		(1,371	)		(6,086	)
Credit loss (expense)/recovery		3			(792	)		6			(27	)		(810	)
Depreciation, amortization and impairment		(314	)		(39	)		(83	)		(45	)		(481	)
Share of gain of an associate and a joint venture		—			—			—			239			239
Other gains and losses		(286	)		(14	)		(36	)		(7	)		(343	)

Segment profit/(loss) before tax		7,525			(825	)		(717	)		(365	)		5,618

Income tax		(1,231	)		169			101			(147	)		(1,108	)

Segment net profit/(loss)		6,294			(656	)		(616	)		(512	)		4,510

The segments’ statement of comprehensive income for the three months ended June 30, 2020, as presented to the CODM are presented below:


	Three months ended June 30, 2020
	PS			CFS			RB			CO			Total
Revenue		8,828			486			688			578			10,580
Cost of revenue		(3,431	)		(49	)		(179	)		(82	)		(3,741	)

Segment net revenue		5,397			437			509			496			6,839

Overheads		(1,250	)		(289	)		(381	)		(724	)		(2,644	)
Credit loss (expense)/recovery		11			(290	)		3			(14	)		(290	)
Depreciation, amortization and impairment		(158	)		(20	)		(43	)		(25	)		(246	)
Share of gain of an associate and a joint venture		—			—			—			107			107
Other gains and losses		(199	)		(4	)		(2	)		(127	)		(332	)

Segment profit/(loss) before tax		3,801			(166	)		86			(287	)		3,434

Income tax		(558	)		32			(42	)		(110	)		(678	)

Segment net profit/(loss)		3,243			(134	)		44			(397	)		2,756

F-14

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

Segment net revenue, as presented to the CODM, for the three and six months ended June 30, 2021 and 2020 is calculated by subtracting cost of revenue from revenue as presented in the table below:


	Three months ended June 30, 2020			Six months ended June 30, 2020			Three months ended June 30, 2021			Six months ended June 30, 2021
Revenue from continuing operations under IFRS		9,426			18,830			10,813			20,047
Revenue from discontinuing operations under IFRS (Note 4)		1,154			2,360			—			—
Cost of revenue from continuing operations		(3,501	)		(7,354	)		(4,764	)		(8,837	)
Cost of revenue from discontinuing operations (Note 4)		(240	)		(737	)		—			—

Total segments net revenue, as presented to CODM		6,839			13,099			6,049			11,210

A reconciliation of segment profit before tax as presented to the CODM to IFRS consolidated profit before tax of the Group, for the three and six months ended June 30, 2021 and 2020, is presented below:


	Three months ended June 30, 2020			Six months ended June 30, 2020			Three months ended June 30, 2021		Six months ended June 30, 2021
Consolidated profit before tax from continuing operations under IFRS		3,488			6,843			3,574		6,243
Consolidated loss before tax from discontinuing operations under IFRS (Note 4)		(900	)		(2,244	)		—		—

Fair value adjustments recorded on business combinations and their amortization		85			169			83		168
Impairment of non-current assets		114			134			—		12
Share-based payments		(11	)		48			2		8
Offering expenses		—			10			—		—
Loss on forward contract to sell Sovest loans’ portfolio		658			658			—		—

Total segments profit before tax, as presented to CODM		3,434			5,618			3,659		6,431

F-15

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

A reconciliation of segment net profit as presented to the CODM to IFRS consolidated net profit of the Group, for the three and six months ended June 30, 2021 and 2020, is presented below:


	Three months ended June 30, 2020			Six months ended June 30, 2020			Three months ended June 30, 2021			Six months ended June 30, 2021
Consolidated net profit from continuing operations under IFRS		2,810			5,499			2,633			4,587
Consolidated net loss from discontinuing operations under IFRS (Note 4)		(973	)		(2,063	)		—			—

Fair value adjustments recorded on business combinations and their amortization		85			169			83			168
Impairment of non-current assets		114			134			—			12
Share-based payments		(11	)		48			2			8
Offering expenses		—			10			—			—
Loss on forward contract to sell Sovest loans’ portfolio		658			658			—			—
Effect from taxation of the above items		73			55			(14	)		(10	)

Total segments net profit, as presented to CODM		2,756			4,510			2,704			4,765

Geographic information

Revenues from external customers are presented below:


	Three months ended June 30, 2020		Six months ended June 30, 2020		Three months ended June 30, 2021		Six months ended June 30, 2021
Russia		8,140		16,286		9,918		18,247
Other CIS		365		762		473		938
EU		710		1,384		92		221
Other		1,365		2,758		330		641

Total revenue from continued and discontinued operations		10,580		21,190		10,813		20,047

Revenue is recognized according to merchants’ or consumers’ geographic place. The majority of the Group’s non-current assets are located in Russia.

The Group has only one external customer where revenue exceeded 10% of the Group’s total revenue and amounted to 21.4% for the six months ended June 30, 2021 (11.1% for the six months ended June 30, 2020), and 21.5% for the three months ended June 30, 2021 (has no such customers for the three months ended June 30, 2020). This revenue was generated within the PS segment.

F-16

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

Disaggregated revenue information

The types of Group’s revenue from contracts with customers is represented by those disclosed in tables below.

Disaggregation of revenues from contracts with customers under IFRS 15, including those from discontinued operations, for the six months ended June 30, 2021 are presented below:


	PS		CO		Total
Payment processing fees		16,777		—		16,777
Cash and settlement service fees		32		189		221
Platform and marketing services related fees		75		358		433
Fees for guarantees issued		10		265		275
Other revenue		141		3		144

Total revenue from contracts with customers		17,035		815		17,850

Disaggregation of revenues from contracts with customers, including those from discontinued operations, for the three months ended June 30, 2021 are presented below:


	PS		CO		Total
Payment processing fees		9,162		—		9,162
Cash and settlement service fees		13		95		108
Platform and marketing services related fees		40		176		216
Fees for guarantees issued		4		135		139
Other revenue		79		2		81

Total revenue from contracts with customers		9,298		408		9,706

Disaggregation of revenues from contracts with customers, including those from discontinued operations, for the six months ended June 30, 2020 are presented below:


	PS		CFS		RB		CO		Total
Payment processing fees		15,731		—		—		—		15,731
Cash and settlement service fees		24		—		797		259		1,080
Installment cards related fees		—		754		—		—		754
Platform and marketing services related fees		67		—		15		282		364
Fees for guarantees issued		12		—		—		156		168
Other revenue		63		—		91		20		174

Total revenue from contracts with customers		15,897		754		903		717		18,271

F-17

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

5.	Operating segments (continued)

Disaggregation of revenues from contracts with customers, including those from discontinued operations, for the three months ended June 30, 2020 are presented below:

CFS

Total

Payment processing fees

7,796

–

7,796

Cash and settlement service fees

–

611

131

757

Installment cards related fees

–

305

–

305

Platform and marketing services related fees

–

159

191

Fees for guarantees issued

–

100

Other revenue

–

Total revenue from contracts with customers

7,883

305

635

388

9,211

6. Long-term and short-term loans issued

As of June 30, 2021, long-term and short-term loans issued consisted of the following:

Total as of
June 30, 2021

Expected credit
loss allowance

Net as of
June 30, 2021

Long-term loans

Loans to legal entities

257

–

257

Total long-term loans

257

–

257

Short-term loans

Loans to legal entities

5,660

(45

)

5,615

Total short-term loans

5,660

(45

)

5,615

As of December 31, 2020, long-term and short-term loans consisted of the following:

Total as of
December 31,
2020

Expected credit
loss allowance

Net as of
December 31,
2020

Long-term loans

Loans to legal entities

214

–

214

Total long-term loans

214

–

214

Short-term loans

Loans to legal entities

5,836

(37

)

5,799

Total short-term loans

5,836

(37

)

5,799

The amounts in the tables show the maximum exposure to credit risk regarding loans issued. The Group has no internal grading system of loans issued for credit risk rating grades analysis. The major part of loans issued are not collateralized.

F-18

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

6.	Long-term and short-term loans issued (continued)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the six months ended June 30, 2021, was the following:


	Stage 1			Stage 2			Stage 3			Total
	Collective			Collective			Stage 3			Total
ECL allowance as of January 1, 2021		(5	)		(1	)		(31	)		(37	)

Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		(4	)		–			(4	)		(8	)
Transfers between stages		–			–			–			–

ECL allowance as of June 30, 2021		(9	)		(1	)		(35	)		(45	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the three months ended June 30, 2021, was the following:


	Stage 1			Stage 2			Stage 3			Total
	Collective			Collective			Stage 3			Total
ECL allowance as of April 1, 2021		(5	)		(1	)		(33	)		(39	)

Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		(4	)		–			(2	)		(6	)
Transfers between stages		–			–			–			–

ECL allowance as of June 30, 2021		(9	)		(1	)		(35	)		(45	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the six months ended June 30, 2020, was the following:


	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of January 1, 2020		(229	)		(120	)		(494	)		(843	)

Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		(123	)		(210	)		(488	)		(821	)
Transfers between stages		140			(8	)		(132	)		–
Reclassification to disposal group		212			338			1,073			1,623

ECL allowance as of June 30, 2020		–			–			(41	)		(41	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the three months ended June 30, 2020, was the following:


	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of April 1, 2020		(286	)		(391	)		(704	)		(1,381	)

Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		65			44			(392	)		(283	)
Transfers between stages		9			9			(18	)		–
Reclassification to disposal group		212			338			1,073			1,623

ECL allowance as of June 30, 2020		–			–			(41	)		(41	)

As of June 30, 2021, and December 31, 2020, the Group had no overdue but not impaired loans.

F-19

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

7.	Trade and other receivables

As of June 30, 2021, trade and other receivables consisted of the following:


	Total as of June 30, 2021		Expected credit loss allowance/Provision for impairment			Net as of June 30, 2021
Cash receivable from agents		2,951		(187	)		2,764
Deposits issued to merchants		2,236		(16	)		2,220
Commissions receivable		158		(20	)		138
Other receivables		422		(199	)		223

Total financial assets		5,767		(422	)		5,345

Advances issued		203		(1	)		202

Total trade and other receivables		5,970		(423	)		5,547

As of December 31, 2020, trade and other receivables consisted of the following:


	Total as of December 31, 2020		Expected credit loss allowance/Provision for impairment			Net as of December 31, 2020
Cash receivable from agents		2,358		(150	)		2,208
Deposits issued to merchants		4,639		(17	)		4,622
Commissions receivable		135		(19	)		116
Other receivables		343		(97	)		246

Total financial assets		7,475		(283	)		7,192

Advances issued		254		(1	)		253

Total trade and other receivables		7,729		(284	)		7,445

The amounts in the tables show the maximum exposure to credit risk regarding Trade and other receivables. The Group has no internal grading system of Trade and other receivables for credit risk rating grades analysis. Receivables are non-interest bearing, except for agent receivables bearing, generally, interest rate of 20%-36% per annum and credit terms generally do not exceed 30 days. There is no requirement for collateral for customer to receive an overdraft.

F-20

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

7.	Trade and other receivables (continued)

An analysis of changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the six months ended June 30, 2021 and June 30, 2020, was the following:


	2020			2021
ECL allowance as of January 1,		(289	)		(284	)

Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period		(18	)		(149	)
Amounts written off		43			10

ECL allowance as of June 30,		(264	)		(423	)

An analysis of the changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the three months ended June 30, 2021 and June 30, 2020, was the following:


	2020			2021
ECL allowance as of April 1,		(269	)		(367	)

Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period		(10	)		(58	)
Amounts written off		15			2

ECL allowance as of June 30,		(264	)		(423	)

8.	Cash and cash equivalents

As of June 30, 2021, and December 31, 2020, cash and cash equivalents consisted of the following:


	As of December 31, 2020			As of June 30, 2021
Correspondent accounts with Central Bank of Russia (CBR)		3,467			607
Cash with banks and on hand		9,089			3,261
Short-term CBR deposits		32,800			19,000
Other short-term bank deposits		2,028			12,987
Less: Allowance for ECL		(2	)		(2	)

Total cash and cash equivalents		47,382			35,853

The amounts in the table show the maximum exposure to credit risk regarding cash and cash equivalents. While the Group has no internal grading system of cash and cash equivalents for credit risk rating grades analysis all its cash is held in highly rated banks and financial institutions according to the external rating agencies. These banks have low credit risk and are approved by the Board of Directors of the Group on a regular basis.

The Group holds cash and cash equivalents in different currencies and therefor is exposed to foreign currency risk.


	As of December 31, 2020		As of June 30, 2021
Russian ruble		40,040		32,386
Euro		3,407		1,330
US Dollar		2,847		1,038
Others		1,088		1,099

Total		47,382		35,853

Since 2017 the Company has a bank guarantee and secured it by a cash deposit of U.S.$ 2.5 mln until July 31, 2021.

F-21

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

9.	Other current assets and other current liabilities

9.1 Other current assets

As of June 30, 2021, and December 31, 2020, other current assets consisted of the following:


	As of December 31, 2020		As of June 30, 2021
Reserves at CBR*		736		520
Total other financial assets		736		520

Prepaid expenses		259		146
Other		207		209

Total other current assets		1,202		875

Banks are currently required to post mandatory reserves with the CBR to be held in non-interest bearing accounts. Starting from July 1, 2019, such mandatory reserves established by the CBR constitute 4.75% for liabilities in RUR and 8% for liabilities in foreign currency. The amount is excluded from cash and cash equivalents for the purposes of cash flow statement and does not have a repayment date.

The Group has no internal grading system of other current assets for credit risk rating grades analysis.

9.2 Other current liabilities

As of June 30, 2021, and December 31, 2020, other current liabilities consisted of the following:


	As of December 31, 2020		As of June 30, 2021
Contract liability related to guarantees issued		521		695
Contract liability related to loyalty programs		66		–
Other		60		50

Total other current liabilities		647		745

10.

Trade and other payables

As of June 30, 2021, and December 31, 2020, the Group’s trade and other payables consisted of the following:


	As of December 31, 2020		As of June 30, 2021
Payables to merchants		12,801		5,442
Money remittances and e-wallets accounts payable		5,725		6,463
Deposits received from agents		8,357		3,301
Commissions payable		465		356
Accrued personnel expenses and related taxes		1,386		1,185
Other payables		794		650

Total trade and other payables		29,528		17,397

F-22

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

11. Customer accounts and amounts due to banks

As of June 30, 2021, and December 31, 2020, customer accounts and amounts due to banks consisted of the following:


	As of December 31, 2020		As of June 30, 2021
Individuals’ current/demand accounts		1,539		112
Legal entities’ current/demand accounts		6,995		5,949
Term deposits		1,156		364
Due to banks		2,647		1,622

Total customer accounts and amounts due to banks		12,337		8,047

*Including long-term deposits*		36		—

Customer accounts and amounts due to banks bear interest of up to 2.65% (2020 – 4%).

12. Debt

As of June 30, 2021, and December 31, 2020, Group’s debt consisted of the following:


	Credit limit		Effective interest rate			Maturity		As of December 31, 2020		As of June 30, 2021
Current interest-bearing debt
Bank’ revolving credit facility		460		Up to 10	%		December 31, 2021		—		—
Bank’ revolving credit facility		500		Up to 15	%		April 20, 2026		—		—

Non-current interest-bearing debt
Bank’ revolving credit facility		1,000		8.5%			October 7, 2021		604		302
Bank’ revolving credit facility		1,000		8.5%			December 22, 2021		945		247
Bonds issued		5,000		9.3%			October 10, 2023		5,014		5,025

Total debt									6,563		5,574

*Including short-term portion*									*1,640*		*638*

The Group is subject to different covenants regarding its bonds issued. As of June 30, 2021, and December 31, 2020, the Group was in compliance with all covenants stipulated by the public irrevocable offers.

Interest expense related to Group’s debt for the six months ended June 30, 2021 amounted to 257 (for the six months ended June 30, 2020 – 66). Bank’ revolving credit facilities in the amount of 2,000 are secured by a pledge of assets (see Note 20).

F-23

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

13.

Investment in associates

The Group has a single associate: JSC Tochka.

QIWI Group assesses its share in the entity at 45% according to its share in dividends and potential capital gains. The Group’s interest in JSC Tochka was accounted for using the equity method until the reclassification to assets held for sale in June 2021 (Note 4).

The following table illustrates summarized financial information of the Group’s investment in JSC Tochka associate:


	As of December 31, 2020
Associates’ statement of financial position:
Non-current assets		1,437
Current assets		3,729
including cash and cash equivalents		2,631
Non-current financial liabilities		(263	)
Current liabilities		(1,270	)
including financial liabilities		(959	)

Net assets		3,633

Carrying amount of investment in associates (45%) of net assets		1,635

Associate’s revenue and net income for the three and six months ended June 30 was as follows:


	Three months ended June 30, 2020			Six months ended June 30, 2020			Three months ended June 30, 2021*			Six months ended June 30, 2021*
Revenue		1,625			3,380			2,135			4,296
Cost of revenue		(77	)		(162	)		(138	)		(333	)
Other income and expenses, net		(1,311	)		(2,687	)		(1,677	)		(3,264	)
including personnel expenses		(621	)		(1,370	)		(1,019	)		(1,853	)
including depreciation and amortization		(73	)		(137	)		(84	)		(168	)

Total net profit/(loss)		237			531			320			699

Group’s share (45%) of total net profit		107			239			143			314

* up to the date of reclassification to assets held for sale

F-24

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

14.

Leases

The Group has commercial lease agreements of office buildings. The leases have an average life up to nine years. The contracts for a term of less than a year fall under the recognition exemption for being short-term leases. Total lease expense for the six months ended June 30, 2021 recognized under such contracts is 20 (six months 2020 – 32). Future minimum lease rentals under non-cancellable lease commitments for office premises for a term less than one year as of June 30, 2021 are 8 (December 31, 2020 – 21).

For long-term contracts, right-of-use assets and lease liabilities were recognized. Right-of-use assets are included into property and equipment. The change in the balances of Right-of-use assets and Lease liabilities for the six months ended June 30, 2021 was as follows:


	Right-of-use assets Office buildings			Lease liabilities
As of January 1, 2021		1,087			1,116
Additions		25			25
Derecognition		(18	)		(18	)
Depreciation		(144	)		—
Interest expense		—			44
Payments		—			(73	)

As of June 30, 2021		950			1,094

Including short-term portion					357

The change in the balances of Right-of-use assets and Lease liabilities for the six months ended June 30, 2020 was as follows:


	Right-of-use assets Office buildings			Lease liabilities
As of January 1, 2020		1,351			1,357
Additions		205			205
Derecognition		(28	)		(28	)
Depreciation		(166	)		—
Interest expense		—			63
Payments		—			(107	)

As of June 30, 2020		1,362			1,490

Including short-term portion					385

For the amount of rent expense recognized from short-term leases and variable lease payments for the three and six months ended June 30, 2021 and June 30, 2020 see note 17.

F-25

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

15.

Revenue

Other revenue for three and six months ended June 30 was as follows:


	Three months ended June 30, 2020		Six months ended June 30, 2020		Three months ended June 30, 2021		Six months ended June 30, 2021
Cash and settlement service fees		146		283		108		221
Platform and marketing services related fees		191		349		216		433
Fees for guarantees issued		100		168		139		275
Other revenue		37		97		81		144

Total Other revenue		474		897		544		1,073

For the purposes of consolidated condensed statement of cash flow, “Interest income, net” includes both continued and discontinued operations and consists of the following:


	Six months ended
	June 30, 2020			June 30, 2021
Interest revenue calculated using the effective interest rate		(1,211	)		(1,343	)
Interest expense classified as part of cost of revenue		89			247
Interest income and expenses from non-banking loans, net, classified separately in the consolidated statement of comprehensive income		44			27
Interest income and expenses related to discontinued operations		(517	)		–

Interest income, net, for the purposes of consolidated cash flow statement		(1,595	)		(1,069	)

16.

Cost of revenue


	Three months ended June 30, 2020		Six months ended June 30, 2020		Three months ended June 30, 2021		Six months ended June 30, 2021
Transaction costs		3,188		6,528		4,229		7,776
Interest expense		42		89		133		247
Other expenses		271		737		402		814

Total cost of revenue		3,501		7,354		4,764		8,837

F-26

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

17.

Selling, general and administrative expenses


	Three months ended June 30, 2020		Six months ended June 30, 2020		Three months ended June 30, 2021		Six months ended June 30, 2021
Advertising, client acquisition and related expenses		30		135		65		120
Tax expenses, except of income and payroll relates taxes		49		129		78		150
Advisory and audit services		137		286		146		284
Rent of premises		24		49		26		54
Expenses related to Tochka platform services		75		186		82		135
IT related services		75		145		99		185
Offering expenses		–		10		–		–
Other expenses		120		264		116		233

Total selling, general and administrative expenses		510		1,204		612		1,161

18.

Dividends paid and proposed

Dividends paid and proposed by the Group are presented below:


	Six months ended
	June 30, 2020		June 30, 2021
Proposed, declared and approved during the period: Six months ended June 30, 2021: Final dividend for 2020: U.S.$ 19,347,534 or U.S.$ 0.31 per share, Interim dividend for 1Q 2021: U.S.$ 13,734,622 or U.S.$ 0.22 per share				2,433
(Six months ended June 30, 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for Q1 2020: U.S.$ 8,699,680 or U.S.$ 0.14 per share)		1,655
Paid during the period: Six months ended June 30, 2021: Final dividend for 2020: U.S.$ 19,347,534 or U.S.$ 0.31 per share, Interim dividend for 1Q 2021: U.S.$ 13,734,622 or U.S.$ 0.22 per share				2,446
(Six months ended June 30, 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for Q1 2020: U.S.$ 8,699,680 or U.S.$ 0.14 per share)		1,630
Proposed for approval (not recognized as a liability as of June 30): Three months ended June 30, 2021: Interim dividend for 2021: U.S.$ 18,730,240 or U.S.$ 0.30 per share				1,385
(Three months ended June 30, 2020: Interim dividend for 2020: U.S.$ 20,517,015 or U.S.$ 0.33 per share)		1,503
Dividends payable as of June 30:		—		—

F-27

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

19.

Income tax

The Company is incorporated in Cyprus under the Cyprus Companies Law, but the business activity of the Group and joint ventures is subject to taxation in multiple jurisdictions, the most significant of which include:

Cyprus

The Company is subject to 12.5% corporate income tax applied to its worldwide income.

The Company is exempt from the special contribution to the Defence Fund on dividends received from abroad.

In 2020 the Company obtained a written confirmation from the Cyprus tax authorities in the form of a tax ruling in which the Cyprus tax authorities accept in writing not to impose any deemed dividend distribution liability since the Company is a public entity and it is impossible to identify the final minor shareholders.

The Russian Federation

The Company’s subsidiaries incorporated in the Russian Federation are subject to corporate income tax at the standard rate of 15% applied to income received from Russia government bonds and 20% applied to their taxable income.

The new Protocol of September 8, 2020 effective from January 1, 2021 established withholding tax rates as 15% in respect of interest and dividend income paid to Cyprus (though it provides for a number of exceptions where the lower rates of 5% or 0% are envisaged). The Company believes that it fulfills the conditions for application of the reduced 5% tax rate under the amended Russia-Cyprus Double Tax Treaty in respect of dividend income.

Republic of Kazakhstan

The Company’s subsidiary incorporated in Kazakhstan is subject to corporate income tax at the standard rate of 20% applied to their taxable income.

The major components of income tax expense in the interim condensed consolidated statement of comprehensive income are:


	Three months ended June 30, 2020			Six months ended June 30, 2020			Three months ended June 30, 2021			Six months ended June 30, 2021
Current income tax expense		(536	)		(997	)		(789	)		(1,424	)
Deferred tax expense		(215	)		(166	)		(152	)		(232	)

Total income tax expense for the period		(751	)		(1,163	)		(941	)		(1,656	)

Including:
Continuing operations		(678	)		(1,344	)		(941	)		(1,656	)
Discontinued operations		(73	)		181			—			—

The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings of its subsidiaries.

F-28

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks

Operating environment

Russia’s economy has been facing significant challenges for the past few years due to the combined effect of the ongoing crisis in Eastern Ukraine, the deterioration of Russia’s relationships with many Western countries, the economic and financial sanctions imposed in connection with these events on certain Russian companies and individuals, as well as against entire sectors of the Russian economy, by the US, the EU, Canada and other countries, a record weakening of the Russian ruble against the U.S. dollar, a lack of access to financing for Russian issuers, capital flight and a general climate of political and economic uncertainty, among other factors. The ongoing COVID-19 pandemic and related lockdown measures have also contributed to the deterioration of the Russian economy. Consumer spending had generally remained cautious even prior to the COVID-19 pandemic, which upended the modest recovery that the Russian economy had experienced in the few preceding years. The outbreak of the COVID-19 pandemic and associated responses from various countries around the world, which began in early 2020 and continue to unfold to date, have negatively affected consumer demand across the globe and across industries. As a result, the Russian ruble has significantly and abruptly depreciated against the U.S. dollar and the Euro. This volatile exchange rate environment continues to prevail even though the oil prices have rebounded. The full scope of the negative impact that the ongoing COVID-19 pandemic and the lockdown measures adopted in response thereto may have on the Russian economy remains unclear but is likely to be very significant. A prolonged economic slowdown in Russia could have a significant negative effect on consumer spending in Russia and, accordingly, on the Group’s business. The negative impact of the pandemic was mitigated by accelerating inflation, an overall increase in digitalization of payments and emerging opportunities around the growing gig-economy, which are supportive trends for payment and financial service providers like QIWI. The Group was able to grow payment volumes and improve margins by adapting to the rapidly changing environment and customer behaviour. Significant growth within the B2B and B2B2C streamlines was noted as the Group continuously enhance its customer value proposition. These transactions mostly represent use-cases connected to peer-to-peer transactions, light banking, collection of proceeds services the Group provides to self-employed customers, etc. Management believes that significant growth in revenue from peer-to-peer transaction may not be representative of revenue from such transactions in future periods. Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by the Group’s system may materially adversely affect its results of operations.

A substantial portion of the Russian population continues to rely on cash payments, rather than credit and debit card payments or electronic banking. The Group’s business has developed as a network of kiosks and terminals that allow consumers to use physical currency for online payments. While the Group has since largely outgrown that model, the network of kiosks and terminals remains a significant part of the Group’s infrastructure and serves as a reload and client acquisition channel for Qiwi Wallet. Over time, the prevalence of cash payments is declining as a greater percentage of the population in emerging markets adopts credit and debit card payments and electronic banking, and the number of kiosks and terminals in the QIWI network is decreasing as the market shifts towards a higher share of digital payments. Since the first quarter of 2020, the Group’s physical distribution network was and, to a certain extent, continues to be negatively affected by the spread of the COVID-19 pandemic, corresponding lockdown measures, and other restrictions that limited users’ access to certain retail locations, as well as reducing the overall activity of the population. Other factors could also contribute to a decline in the use of kiosks and terminals, including regulatory changes, increases in consumer fees imposed by the agents and the development of alternative payment channels. All of these factors could have a material adverse effect on the Group’s business, financial condition and results of operations.

F-29

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Regulatory environment

QIWI’s business is impacted by laws and regulations that affect its industry. The number of such regulations has increased significantly in recent years. The Group is subject to a variety of regulations, including those aimed at preventing money laundering and the financing of criminal activity and terrorism, financial services regulations, payment services regulations, consumer protection laws, currency control regulations, advertising laws, betting laws and privacy and data protection laws. As a result, the Group experiences periodic investigations by various regulatory authorities in connection with such laws and regulations, which may sometimes result in the imposition of monetary or other sanctions. Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by the Group’s system may materially adversely affect its results of operations.

In recent years the CBR has considerably increased the intensity of its supervision and regulation of the Russian banking sector. Qiwi Bank has been the subject of CBR investigations in the past that have uncovered various violations and deficiencies in relation to, among other things, reporting requirements, anti-money laundering, cybersecurity, compliance with applicable electronic payments thresholds requirements and other issues which management believes QIWI has generally rectified. In the second half of 2020, the CBR, acting in its supervisory capacity, performed another routine scheduled audit of Qiwi Bank. In the course of this audit the CBR identified certain violations and deficiencies with respect to compliance with applicable banking legislation and regulations and reporting requirements to the CBR. The monetary fine imposed on Qiwi Bank as a result of these findings was RUB 11 million. In addition, the CBR introduced certain restrictions with respect to Qiwi Bank’s operations, including, effective for a six-month period starting December 7, 2020, the suspension of, or limitation on, most types of payments to foreign merchants and money transfers to pre-paid cards from corporate accounts. During the first half of 2021, management has been working closely with the CBR to remediate the identified deficiencies and violations and to eliminate or limit the restrictions that have been imposed. As of the date of this report, the restrictions imposed by the CBR in December 2020 have expired. The recovery of the payment volumes and revenues lost in the wake of restrictions is highly dependent on changed customer behaviour and cannot be accurately estimated as well as may never be restored.

There can be no assurance that new laws and regulations adverse to the Group’s business will not come into force, that new sanctions will not be imposed on QIWI as a result of such or any past or future findings, that the Group will not come under greater CBR scrutiny in connection with any perceived deficiencies in its conduct, that any currently planned or future inspections will not result in discovery of any significant or minor additional violations of various banking regulations, or what sanctions the CBR may impose on QIWI in connection with such deficiencies or violations. Any such events could have a material adverse effect on the Group’s business, financial condition and results of operations.

F-30

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Regulatory environment (continued)

As part of its business operations, the Group provides payment processing services to a number of merchants in the betting industry. Processing payments to such merchants represents a significant portion of the Group’s revenue. Processing such payments generally carries higher margins than processing payments to merchants in most other categories. Moreover, the repayment of winnings by such merchants to customers also serves as an important and economically beneficial Qiwi Wallet reload channel and a new customer acquisition tool. The Group’s operating results will continue to depend on merchants in the betting industry and their use of the Group’s services for the foreseeable future. The betting industry is subject to extensive and actively developing regulation in Russia, as well as increasing government scrutiny. In 2016 Qiwi Bank established a TSUPIS together with one of the self-regulated associations of bookmakers in order to be able to accept such payments, and the Group thereby became one of the two payment services providers that are able to accept electronic bets on behalf of sports betting companies in Russia.

In December 2020, a new law was adopted, abolishing the mandatory participation of bookmakers in self-regulated organizations, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Centre. This role is required to be assigned to a credit institution specifically authorized by the President of Russia based on a proposal made by the Government. By the end of September 2021, such newly-appointed Unified Interactive Bets Accounting Centre will replace the existing TSUPIS. These developments are expected to negatively affect the payment volume, revenue and margins of QIWI Payment Services business due to discontinuation of operations of the TSUPIS established by Qiwi Bank. The Group will continue to generate volumes and income from betting in the form of winnings payouts to QIWI Wallets as those are not currently restricted by the new law. However, due to the rapidly changing legislation and operating environment in the betting industry, there is no guarantee that these operations will be sustainable.

For more detailed disclosure on the operating and regulatory environment and other key risks please refer to the most recent annual report on Form 20-F and Financial Statements filed with the Securities and Exchange Commission.

F-31

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Taxation in Cyprus

As of today, there are no specific transfer pricing rules or any transfer pricing documentation requirements in the Cyprus tax laws with respect to any other related party transactions. However, Cyprus is in the late stages of adopting transfer pricing rules, covering all types of inter-company transactions and require the preparation of a Local and Master File as well as Summary Information Table in line with the OECD Transfer Pricing Guidelines (subject to the relevant thresholds). The Cyprus draft transfer pricing legislation is expected to be enacted within the coming months.

DAC6 was implemented in Cyprus on June 25, 2018 as part of the Administrative Cooperation in the Field of Taxation (Amendment) Law 2019 (AC19 Law). The Cypriot Tax Department launched a public consultation on the AC19 Law on October 22, 2019. The Directive requires intermediaries (including EU-based tax consultants, banks and lawyers) and in some situations, taxpayers, to report certain cross-border arrangements (reportable arrangements) to the relevant EU member state tax authority. Cross-border arrangements will be reportable if they contain certain features (known as hallmarks). The hallmarks cover a broad range of structures and transactions. Determining if there is a reportable cross-border arrangement raises complex technical and procedural issues for taxpayers and intermediaries. The Company would review its policies and strategies for logging and reporting tax arrangements to ensure its compliance with the abovesaid obligations.

Taxation in the Russian Federation

Russian and the CIS’s tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. For instance, introduction of the concept of beneficial ownership may result in the inability of the foreign companies within the Group to claim benefits under a double tax treaty through structures which historically have benefited from double tax treaty protection in Russia. Recent court cases demonstrate that the Russian tax authorities actively challenge application of double tax treaty benefits retroactively (i.e. prior to concept of beneficial ownership was introduced in the Russian Tax Code) on the grounds that double tax treaties already include beneficial ownership requirement to allow application of reduced tax rates or exemptions. In these cases, the Russian tax authorities obtained relevant information by means of information exchange with the foreign tax authorities.

Withholding tax at the rate of 15% is applied to any dividends paid by the entities incorporated in Russia to the entities incorporated outside of Russia. The Group commonly seeks to claim treaty protection, as such withholding tax rate (hereinafter “WHT)” may be reduced to 5% under the available Double Tax Treaty (including Cyprus) if certain conditions stipulated thereto are met.

The new Protocol of September 8, 2020 came into effect from January 2021 increasing WHT rates in respect of interest and dividend income to 15% (though it provides for a number of exceptions where the lower rates of 5% or 0% are envisaged). The reduced 5% tax rate in respect of dividend and interest income is envisaged for certain categories of income recipients, including public companies whose shares are listed on a registered stock exchange provided that at least 15% of the voting shares of that company are in free float and which holds directly at least 15% of the capital of the company paying the dividends throughout a 365-day period that includes the day of payment of the dividends.

F-32

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Taxation in the Russian Federation (continued)

The Company believes that it fulfils the conditions for application of the reduced 5% tax rate under the amended Russia-Cyprus Double Tax Treaty in respect of dividend income. However, there is no assurance that the Russian Ministry of Finance will not revise its position in the future or that the Russian tax authorities will not challenge the Company’s position in this respect. It is rather unlikely that the reduced WHT rate under the Russia-Cyprus Double Tax Treaty may be applied to interest income, thus 15% WHT rate will be applied to interest income. Starting from January 1, 2017, the Russian Tax Code requires the tax agent to obtain confirmation from the non-resident holder-legal entity that it is the beneficial owner of the relevant income. Russian tax law provides neither the form of such confirmation nor the precise list of documents which can demonstrate the beneficial owner status of the recipient with respect to the received income. Due to the introduction of these changes, there can be no assurance that treaty relief at source will be available in practice. According to the recent clarifications of the Russian tax authorities, a foreign company may not benefit from a double tax treaty if its activity does not have a real business purpose, if such company does not bear any risks that are normal for business activity, such company does not benefit from the use of such income and its employees actually do not control/ manage such company. If activities of the company are limited to investments and/or financing of a group of companies, it cannot be considered as an independent business activity and it is not enough to confirm the beneficial owner status of the recipient of income. As a result, there is a risk that application of the concept of beneficial ownership may result in the inability of the foreign companies within the Group to claim benefits under a double taxation treaty through structures which historically have benefited from double taxation treaty protection in Russia.

Company intends to use simplified approach for confirmation of the beneficial ownership status that has recently been adopted for public companies with shares and (or) depository receipts comprising more that 25% of their share capital admitted to trade on a qualifying stock exchange if the respective confirmation letter on its beneficial ownership status and documents confirming publicly traded company status are in place. Since this simplified approach is relatively new and untested there is no assurance that the Russian tax authorities will not challenge the Company’s beneficial ownership status.

On November 27, 2017 the Federal Law No. 340-FZ introducing country-by-country reporting (“CbCR”) requirements was published. In accordance with the CbCR requirements, if the Group reaches the reporting threshold in Russia (over RUB 50 billion), or alternatively in any other jurisdiction of presence (e.g. in Cyprus, where the Decree issued by the Cyprus Minister of Finance on December 30, 2016 introduced a mandatory CbCR for multinational enterprise groups generating consolidated annual turnover exceeding EUR 750 million) the Group may be liable to submit relevant CbCR.

In addition, on November 24, 2016, the OECD published the multilateral instrument (“MLI”) which introduces new provisions to existing double tax treaties limiting the use of tax benefits provided thereof, e.g. by means of introduction of the “business purpose” test. To date the MLI has been ratified by Russia with respect to more than 71 double tax treaties signed by Russia with potential effective date of January 1, 2021. Starting from 2021, MLI came into effect in respect of withholding taxes covered by tax treaties concluded by the Russian Federation with 34 countries (including tax treaty with Cyprus). Application of MLI could potentially limit tax benefits granted by double tax treaties of Russian Federation and Cyprus.

F-33

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Taxation in the Russian Federation (continued)

The existing Russian transfer pricing rules became effective from January 1, 2012. Under these rules the Russian tax authorities are allowed to make transfer-pricing adjustments and impose additional tax liabilities in respect of certain types of transactions. It is therefore possible that the Group entities established in Russia may become subject to transfer pricing tax audits by tax authorities in the foreseeable future.

There can be no assurance that the Russian Tax Code will not be changed in the future in a manner adverse to the stability and predictability of the Russian tax system. These factors, together with the potential for state budget deficits, raise the risk of the imposition of additional taxes on the Group. The introduction of new taxes or amendments to current taxation rules may have a substantial impact on the overall amount of the Group’s tax liabilities. There is no assurance that it would not be required to make substantially larger tax payments in the future, which may adversely affect the Group’s business, financial condition and results of operations.

On July 19, 2017, new anti-avoidance provisions were introduced into the Russian Tax Code and the Article 54.1 of the Russian Tax Code was adopted, which replaced the previously existing concept of “unjustified tax benefit”. These anti-avoidance provisions establish two specific criteria that should be met simultaneously to entitle a taxpayer to reduce the tax base or the amount of tax: (i) the main purpose of the transaction (operation) is not a non-payment (incomplete payment) and (or) offset (refund) of the amount of tax; and (ii) the obligation under the transaction (operation) is executed by a person who is a party to a contract entered into with the taxpayer and / or a person to whom the obligation to execute a transaction (operation) was transferred under a contract or law. The Russian Tax Code specifically indicates that signing of primary documents by an unidentified or unauthorized person, violation by the counterparty of tax legislation, the possibility to obtain the same result by a taxpayer by entering into other transactions not prohibited by law cannot be considered in itself as a basis for recognizing the reduction of the tax base or the amount of tax unlawful. However, application of these criteria is still under consideration of the tax authorities, therefore, no assurance can be given that positions of taxpayers will not be challenged by the Russian tax authorities

The Russian Ministry of Finance issued clarifications that the concepts expressed in Resolution No. 53 and evolved in the relevant court practice should not be applied by the enactment of new anti-avoidance rules. However, it cannot be excluded that this new concept could be applied by the tax authorities in a broader sense. There were some recent publications in mass media with reference to the Head of Federal Tax Service of the Russian Federation stating that more than 85% of tax disputes based on Article 54.1 of the Russian Tax Code are ruled out in favour of the tax authorities. In view of this trend and taking into the account the uncertainties with application of anti-avoidance concept, this could possibly expose the Group to significant fines, penalties and enforcement measures, despite the best efforts at compliance, and could result in a greater than expected tax burden.

For more detailed disclosure on taxation please refer to the most recent annual report on Form 20-F and Financial Statements filed with the Securities and Exchange Commission.

F-34

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

20.

Commitments, contingencies and operating risks (continued)

Risk assessment

The Group’s management believes that its interpretation of the relevant legislation is appropriate and is in accordance with the current industry practice and that the Group’s currency, customs, tax and other regulatory positions will be sustained. However, it is possible that a taxation authority will accept an uncertain tax treatment and the maximum effect of additional losses, if the authorities were successful in enforcing their different interpretations, could be significant, and amount up to RUB 2.6 billion rubles that was assessed by the Group as of June 30, 2021 (RUB 2.4 billion rubles as of December 31, 2020).

Insurance policies

The Group holds no insurance policies in relation to its assets, operations, or in respect of public liability or other insurable risks. There are no significant physical assets to insure. Management has considered the possibility of insurance of business interruption in Russia, but the cost of it outweighs the benefits in management’s view.

Legal proceedings

In the ordinary course of business, the Group is subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition or the results of future operations of the Group.

Following the disclosure of the restrictions imposed by the CBR on us in December 2020 QIWI plc and certain of its current and former executive officers have been named as defendants in the putative class action filed in the United States. These lawsuits allege that the defendants made certain false or misleading statements that were supposedly revealed when the CBR audit results and restrictions were disclosed in December 2020, which the plaintiffs perceive as a violation of Sections 10(b) and 20(a) of the 1934 Securities Exchange Act, and seek damages and other relief based upon such allegations. Management believes that these lawsuits are without merit and intend to defend against them vigorously, and expects to incur certain costs associated with defending against these actions. At this early stage of the litigations, the ultimate outcomes are uncertain and management cannot reasonably predict the timing or outcomes, or estimate the amount of loss, if any, or their effect, if any, on the Group’s financial statements. Any negative outcome could result in payments of substantial monetary damages and accordingly Group’s business could be seriously harmed.

Pledge of assets

As of June 30, 2021, the Group pledged debt securities (government bonds) with the carrying amount of 1,756 (December 31, 2020 – 4,339) as collateral for bank guarantees issued on Group’s behalf to its major partners and for credit facilities received.

Guarantees issued

The Group issues financial and performance guarantees to non-related parties for the term up to five years at market rate. The amount of guarantees issued as of June 30, 2021 is 25,930 (as of December 31, 2020 – 22,036).

F-35

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

21.

Balances and transactions with related parties

The following table provides the total amount of transactions that have been entered into with related parties during the six months ended June 30, 2021 and 2020, as well as balances with related parties as of June 30, 2021 and December 31, 2020:


	For the six months ended June 30, 2021					As of June 30, 2021
	Sales to/ income from related parties		Purchases/ expenses from related parties			Amounts owed by related parties		Amounts owed to related parties
Associates		3		(133	)		170		(33	)
Key management personnel		—		(174	)		—		(89	)
Other related parties		5		(9	)		5		(3	)

	For the six months ended June 30, 2020					As of December 31, 2020
	Sales to/ income from related parties		Purchases/ expenses from related parties			Amounts owed by related parties		Amounts owed to related parties
Associates		1		(256	)		170		(116	)
Key management personnel		—		(194	)		—		(142	)
Other related parties		1		(8	)		8		(9	)

Benefits of key management and Board of Directors generally comprise of short-term benefits amounted to 174 during the six months ended June 30, 2021 (199—during the six months ended June 30, 2020) and share-based payments amounted to nil during the six months ended June 30, 2021 (5 loss—during the six months ended June 30, 2020).

F-36

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

22.

Financial instruments

The Group’s principal financial instruments consisted of loans receivable, trade and other receivables, customer accounts and amounts due to banks, trade and other payables, cash and cash equivalents, long and short-term debt instruments and reserves at CBR. The Group has various financial assets and liabilities which arise directly from its operations. During the reporting period, the Group did not undertake trading in financial instruments.

The fair value of the Group’s financial instruments as of June 30, 2021 and December 31, 2020 is presented by type of the financial instrument in the table below:


		As of December 31, 2020				As of June 30, 2021
		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Debt securities and deposits	AC		6,383		6,476		5,355		5,320
Long-term loans	AC		196		196		228		228
Long-term loans	FVPL		18		18		29		29

Total financial assets			6,597		6,690		5,612		5,577

Financial liabilities
Bonds issued	AC		5,014		5,134		5,025		5,070

Financial instruments used by the Group are included in one of the following categories:

•

AC – accounted at amortized cost;

•

FVPL – accounted at fair value through profit or loss.

Carrying amounts of cash and cash equivalents, short-term loans issued, short-term deposits placed, debt, accounts receivable and payable, reserves at CBR, lease liabilities, customer accounts and amounts due to banks approximate their fair values largely due to short-term maturities of these instruments.

Debt instruments of the Group mostly consist of RUB nominated government and high-quality corporate bonds with interest rate 7.0%—7.6% and maturity up to January 2023. Some of debt securities are pledged (Note 20).

Long-term loans generally represent RUB nominated loans to Russian legal entities and have a maturity up to six years. For the purpose of fair value measurement of these loans the Group uses comparable marketable interest rate which is in range of 7-35%.

F-37

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

22.

Financial instruments (continued)

The following table provides the fair value measurement hierarchy of the Group’s financial instruments to be accounted or disclosed at fair value:

Fair value measurement using

Quoted prices
in active
markets

Significant
observable
inputs

Significant
unobservable
inputs

Date of valuation

Total

(Level 1)

(Level 2)

(Level 3)

Assets accounted at fair value through profit or loss

Long-term loans

June 30, 2021

–

Assets for which fair values are disclosed

Debt securities and deposits

June 30, 2021

5,320

–

Long-term loans

June 30, 2021

228

–

228

Liabilities for which fair values are disclosed

Bonds issued

June 30, 2021

5,070

–

Assets accounted at fair value through profit or loss

Long-term loans

December 31, 2020

–

Assets for which fair values are disclosed

Debt instruments and deposits

December 31, 2020

6,476

–

Long-term loans

December 31, 2020

196

–

196

Liabilities for which fair values are disclosed

Bonds issued

December 31, 2020

5,134

–

There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into or out of Level 3 fair value measurements during the six months ended June 30, 2021.

The Group uses the following IFRS hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

•

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities;

•

Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly;

•

Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

With regard to the level 3 assessment of fair value, management believes that no reasonably possible change in any of the unobservable inputs would be sensitive for financial assets accounted at fair value.

F-38

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

22.

Financial instruments (continued)

Valuation methods and assumptions

The fair value of the financial assets and liabilities are evaluated at the amount the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Long-term fixed-rate loans issued are evaluated by the Group based on parameters such as interest rates, terms of maturity, specific country and industry risk factors and individual creditworthiness of the customer.

23.

Events after the reporting date

Tochka sale

In July 2021, the Group has entered into an agreement with Otkritie Bank to sell all its stake in the capital of JSC Tochka. Closing is expected to take place in third quarter of 2021. The final deal price adjustment will be performed on the basis of Tochka’s audited results for the year 2021, once available, and is expected to be settled in second quarter of 2022.

Dividends distribution

On August 12, 2021 the Board of Directors of the Company approved dividends of U.S.$ 18,730,240 (equivalent of 1,385).

F-39

EX-99.3

Exhibit 99.3

Acknowledgment Letter of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Qiwi plc

We are aware of the incorporation by reference in the Registration Statements (Form S-8 No. 333-190918; Form S-8 No. 333-212441) pertaining to the Amended and Restated Employee Stock Option Plan and the 2015 Employee Restricted Stock Units Plan of Qiwi plc of our report dated August 19, 2021 relating to the unaudited condensed consolidated interim financial statements of Qiwi plc that are included in its Form 6-K dated August 19, 2021.

/s/ Ernst & Young LLC

Moscow, Russia

August 19, 2021

Back to the list