QIWI Announces Fourth Quarter and Full Year 2022 Financial Results

FY 2022 Revenue increased 25.2% YoY to RUB 51,502 million (increased 58.6% YoY in 4Q 2022)

FY 2022 Total Net Revenue increased 47.7% YoY to RUB 34,137 million (increased 62.3% YoY in 4Q 2022)

FY 2022 Net Profit declined 21.6% YoY to RUB 13,755 million (or RUB 209.5 per diluted share)

FY 2022 Adjusted Net Profit increased 45.9% YoY to RUB 13,996 million

(or RUB 223.51 per diluted share)

NICOSIA, CYPRUS – March 31, 2023 – QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of cutting-edge payment and financial services in Russia and the CIS, today announced its fourth quarter and full year 2022 financial results ended December 31, 2022.

4Q and FY 2022 key operating and financial highlights¹

Key events in 4Q 2022 and after the reported period

¹ Total Net Revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted Net profit, and adjusted Net profit margin in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.

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4Q and FY 2022 results

Net Revenue breakdown by segments

4Q 2022

Total Net Revenue increased by 62.3% YoY to RUB 8,899 million ($126.5 million) driven by strong performance of both Payment Services (PS) and Corporate and Other (CO) segments.

PS Net Revenue increased by 57.4% to RUB 7,562 million ($107.5 million) compared to last year driven by a combination of higher PS Payment Net Revenue and PS Other Net Revenue.

PS Payment Net Revenue was 60.2% higher YoY and amounted to RUB 5,847 million ($83.1 million) resulting from a 24 bps improvement in PS Payment Net Revenue Yield underpinned by PS Payment Volume increase of 28.8%.

PS Payment Net Revenue Yield improved from 0.91% to 1.13% due to (i) lower third-party processing commissions for payment operations, (ii) improved economics of payouts on the taxi market, and (iii) increased share of operations with higher commissions on currency conversion.

PS Payment Volume reached its record high of RUB 520 billion for the quarter mainly resulting from (i) the growth of operations via our Contact Money remittances payment system; (ii) onboarding of new merchants and aggregators; (iii) an increase of payment volume via QIWI Wallet used for numerous types of services; (iv) and growing payment volume from our product offering for self-employed and peer-to-peer operations.

PS Other Net Revenue increased by 48.5% YoY to RUB 1,715 million ($24.4 million) mainly due to (i) increased net revenue derived from cash and settlement services and related currency conversion income, and (ii) higher interest income driven by a combination of higher outstanding cash balances and favorable Central Bank base rate.

CO Net Revenue increased by 96.8% YoY to RUB 1,337 million ($19.0 million) mainly driven by the growth of ROWI digital factoring and online bank guarantees portfolios, interest income from investments in debt securities (high-quality corporate and government bonds), and interest income for provided credits.

Full Year 2022

Total Net Revenue surged by 47.7% YoY to a historical high of RUB 34,137 million ($485.3) driven by strong performance of both PS and CO segments.

PS Net Revenue reached its record level of RUB 30,103 million ($428.0 million) or 42.7% higher YoY driven by a combination of higher PS Payment Net Revenue and PS Other Net Revenue.

PS Payment Net Revenue was 34.7% higher YoY and amounted to RUB 23,575 million ($335.2 million) resulting from a combination of improved PS Payment Net Revenue Yield by 25 bps YoY and increased PS Payment volume by 8.0% YoY.

PS Payment Net Revenue Yield improved from 1.01% to 1.26% due to (i) lower third-party processing commissions for payment operations, (ii) improved economics of payouts on the taxi market, and (iii) increased share of operations with higher commissions on currency conversion.

PS Payment Volume reached RUB 1,875 billion mainly resulting from (i) the growth of operations via our Contact Money remittances payment system; (ii) onboarding of new merchants and aggregators; (iii) an increase of payment volume via QIWI Wallet used for numerous types of services; (iv) and growing payment volume from our product offering for self-employed and peer-to-peer operations.

PS Other Net Revenue increased by 81.7% YoY to RUB 6,528 million ($92.8 million) mainly due to (i) increased net revenue derived from cash and settlement services and related currency conversion income, and (ii) higher interest income driven by a combination of higher outstanding cash balances and favorable Central Bank base rate.

CO Net Revenue increased by 100.4% YoY to RUB 4,034 million ($57.4 million) driven by the growth of ROWI digital factoring and online bank guarantees portfolios, interest income from investments in debt securities (high-quality corporate and government bonds), and interest income for provided credits partially offset by less contribution from the former Tochka associate.

Corporate and Other (CO) Net Revenue breakdown

CO Net Revenue increased by 96.8% YoY to RUB 1,337 million ($19.0 million) in 4Q 2022 and by 100.4% YoY to RUB 4,034 million ($57.4 million) for the FY 2022 driven by:

Operating expenses and other non-operating income and expenses

4Q 2022

Operating expenses increased by 82.8% YoY to RUB 5,673 million ($80.7 million) following increase in Total Net Revenue. Despite strong operating leverage effect, operating expenses as a percent of Total Net Revenue deteriorated by 7.2 ppts to 63.7% due to allowance for ECL on restricted cash accounts and ROWI credit portfolio as a result of its further growth.

Selling, general and administrative expenses increased by 16.9% to RUB 1,264 million ($18.0 million) while as percent of Total Net Revenue went down by 5.5 ppts YoY to 14.2% driven by the positive operating leverage effect.

Personnel expenses surged by 56.7% YoY to RUB 2,607 million ($37.1 million) driven by hiring of new staff for development of new products and strong financial performance resulting in higher employee bonuses. However, as a percent of Total Net Revenue personnel expenses slightly decreased by 1.0 ppts to 29.3% due to positive operating leverage effect.

Depreciation, amortization and impairment stood at RUB 274 million ($3.9 million) or 3.1% as percent of Total Net Revenue – 2.1 ppts lower YoY due to positive operating leverage effect.

Credit loss increased YoY to 17.2% as percent of Total Net Revenue or RUB 1,528 million ($21.7 million) as a result of allowance for ECL on restricted cash accounts and ROWI credit portfolio as a result of its further growth.

Other non-operating income decreased by 22.1% YoY to RUB 1,713 million ($24.4 million) primarily due to (i) gain on disposal of our Tochka equity associate accounted for in 4Q 2021 in the amount of RUB 1,964 million, which created a high base for the current reporting period, that was partially offset by (ii) foreign exchange gain resulting from the appreciation of the Russian Ruble vs. USD and Euro in 4Q 2022.

Full Year 2022

Operating expenses increased by 40.0% YoY to RUB 15,549 million ($221.1 million) following increase in Total Net Revenue by 47.7% YoY, yet improved by 2.5 ppts to 45.5% as percent of Total Net Revenue driven by the positive operating leverage effect which was partially offset by the allowance for ECL on restricted cash accounts and ROWI credit portfolio as a result of its further growth.

Selling, general and administrative expenses increased by 16.7% to RUB 3,767 million ($53.6 million) and as percent of Total Net Revenue went down by 2.9 ppts YoY to 11.0% due to a combination of (i) positive operating leverage effect, and (ii) lower advisory services and expenses for insurance of Directors & Officers, partially offset by (iii) elevated travelling expenses on weakening of COVID restrictions, and (iv) higher expenses related to multi-bank platform services due to increased payment volumes going via Tochka branch in QIWI Bank.

Personnel expenses increased by 29.4% YoY to RUB 8,269 million ($117.6 million) driven by hiring of new staff for development of new products, indexation of salaries, and strong financial performance resulting in higher accruals for bonuses to employees. As percent of Total Net Revenue personnel expenses decreased by 3.4 ppts to 24.2% driven by the positive operating leverage effect.

Depreciation, amortization and impairment stood at RUB 1,132 million ($16.1 million) or 3.3% as percent of Total Net Revenue – 1.7 ppts lower YoY due to positive operating leverage effect.

Credit loss increased YoY to 7.0% as percent of Total Net Revenue or RUB 2,381 million ($33.9 million) as a result of the allowance for ECL on restricted cash accounts and ROWI credit portfolio as a result of its further growth.

Other non-operating income and expenses (net) was a loss of RUB 404 million ($5.7 million) compared to an income of RUB 8,611 million in 2021 driven by a combination of (i) gain on disposal of our Tochka equity associate in 2021 in the amount of RUB 8,177 million, which created a high base for the current reporting period, (ii) an adverse fluctuation in foreign exchange affecting 2022, (iii) absence of equity pick up from Tochka associate in 2022 compared to 2021, partially compensated by (iv) better other income and expenses net result.

Income tax expense

4Q 2022

Income tax expense increased by 86.7% YoY to RUB 870 million ($12. million) mainly driven by Total Net Revenue dynamics. Effective tax rate was 17.6% or 7.4 ppts higher YoY due to a combination of (i) non-taxable gain from sale of an associate in 4Q 2021, and (ii) non-taxable ECL allowance on restricted cash accounts accrued in 4Q 2022, partially offset by (iii) foreign exchange gain for 4Q 2022 which was non-deductible for tax purposes within the Group perimeter.

Full Year 2022

Income tax expense increased by 43.8% YoY to RUB 4,429 million ($63.0 million) mainly driven by Total Net Revenue dynamics. Effective tax rate was 24.4% or 9.4 ppts higher YoY due to a combination of (i) non-taxable gain from sale of an associate in 2021, (ii) non-taxable ECL allowance on restricted cash accounts accrued in 2022, and (iii) foreign exchange loss for 2022 which was non-deductible for tax purposes within the Group perimeter.

Profitability results

4Q 2022

Adjusted EBITDA increased by 31.4% YoY to RUB 3,500 million ($49.8 million) following increase in Total Net Revenue by 62.3% YoY. Despite the positive operating leverage effect, Adjusted EBITDA margin deteriorated by 9.2 ppts YoY to 39.3% due to allowance for ECL on restricted cash accounts and ROWI credit portfolio as a result of its further growth.

Adjusted Net Profit increased by 89.0% YoY to RUB 4,015 million ($57.0 million). Adjusted Net Profit margin improved by 6.4 ppts and stood at 45.1% mainly driven by the foreign exchange gain partially offset by the higher income tax expense and adjusted EBITDA margin change described above.

Payment Services Net Profit increased by 44.0% YoY to RUB 3,194 million ($45.4 million) as a result of PS Net Revenue growth of 57.4% YoY. PS Net Profit margin slightly deteriorated by 3.9 ppts to 42.2% due to a combination of (i) allowance for ECL on restricted cash accounts, (ii) higher expenses related to multi-bank platform services due to increased payment volumes going via Tochka branch in QIWI Bank, (iii) elevated travelling expenses of employees, and (iv) higher income tax expenses partially offset by (v) positive operating leverage effect.

CO Net Profit increased to RUB 822 million ($11.7 million) compared to CO Net loss of RUB 94 million driven by:

Full Year 2022

Adjusted EBITDA increased by 50.2% YoY to RUB 19,779 million ($281.2 million) following increase in Total Net Revenue by 47.7%. Adjusted EBITDA margin improved by 1.0 ppt YoY to 57.9% due to a combination of (i) positive operating leverage effect, and (ii) lower advisory services and reduced expenses for insurance of Directors & Officers, partially offset by (iii) elevated travelling expenses on weakening of COVID restrictions, and (iv) higher expenses related to multi-bank platform services due to increased payment volumes going via Tochka branch in QIWI Bank.

Adjusted Net Profit increased by 45.9% YoY to RUB 13,996 million ($199.0 million). Adjusted Net Profit margin deteriorated by 0.5 ppt and stood at 41.0% as positive adjusted EBITDA margin development described above was offset by the foreign exchange loss.

Payment Services Net Profit increased by 44.0% YoY to RUB 15,799 million ($224.6 million) as a result of PS Net Revenue growth of 42.7% YoY. PS Net Profit margin slightly increased by 0.5 ppt to 52.5% as positive operating leverage effect was largely mitigated by (i) allowance for ECL on restricted cash accounts, (ii) higher expenses related to multi-bank platform services due to increased payment volumes going via Tochka branch in QIWI Bank, (iii) elevated travelling expenses of employees, and (iv) higher income tax expenses.

CO Net Loss increased by 30.9% to RUB 1,803 million ($25.6 million) driven by combination of the following factors:

Guidance FY 2023

Due to the persisting level of uncertainty and market volatility, we have decided to extend our abstaining from providing guidance on both short- and medium-term perspective. We will update our guidance on expectations if and when more information becomes available.

We encourage investors to review our 2022 Annual Report on Form 20-F in the Caption “Risk Factors” and other reports QIWI files with the U.S. Securities and Exchange Commission for more details on risks.

Dividends

Due to the lingering stock market infrastructure issues resulting from the introduction of European sanctions against the Russian National Settlement Depositary, the Company does not see the opportunity to arrange the distribution of dividends or repurchase shares with the equal treatment of all existing shareholders. Therefore, the Board decided to keep the distribution of dividends under review until changes of the sanction regime in respect of the Russian National Settlement Depositary or other developments that may enable the company to distribute dividends to all of its shareholders.

The full impact of sanctions on the Russian economy and other markets where we operate remains unclear and requires caution for the benefit of all shareholders and the Company.

Earnings Conference Call and Audio Webcast

Given the persisting level of uncertainty and market volatility, there will be no conference call or webcast to discuss the results. We welcome all our stakeholders to send any questions related to our business using the contact details available on our investor’s website. We remain available for individual incoming call requests.

About QIWI plc.

QIWI is a leading provider of cutting-edge payment and financial services in Russia and the CIS. We stand at the forefront of fintech innovations to facilitate and secure the digitalization of payments. Our mission is to connect our clients providing unique financial and technological solutions to make the impossible accessible and simple. We offer a wide range of products under several directions: QIWI payment and financial services ecosystem for merchants and B2C clients across digital use-cases, ROWI digital structured financial products for SME, and several other projects.

For the FY 2022 QIWI had revenue of RUB 51.5 billion and an Adjusted EBITDA of RUB 19.8 billion. QIWI's American depositary shares are listed on the NASDAQ and Moscow Exchange (ticker: QIWI).

For more information, visit investor.qiwi.com.

Contact

Investor Relations

+357.25028091

ir@qiwi.com

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 ROWI, Flocktory and other projects, the impact of recent sanctions targeting Russia, the impact of such sanctions on our results of operations, potential further changes in the regulatory regime, 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 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 markets, 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.

QIWI plc.

Consolidated Statement of Financial Position

(in millions)

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

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.

We define non-IFRS financial measures as follows:

Total Net Revenue is a key measure used by management to observe our operational profitability since it reflects our portion of the revenue net of fees that we pass through, primarily to our agents and other reload channels providers. In addition, under IFRS, most types of fees are presented on a gross basis whereas certain types of fees are presented on a net basis. Therefore, in order to analyze our two sources of payment processing fees on a comparative basis, management reviews Total Net Revenue.

Adjusted EBITDA is a key measure used by management, is serves as a supplemental performance measure that facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expenses, net), changes in foreign exchange rates that impact financial asset and liabilities denominated in currencies other than our functional currency (affecting foreign exchange (loss)/gain, net), tax positions (such as the impact on periods or companies of changes in effective tax rates), the age and book depreciation of fixed assets (affecting relative depreciation expense), non-cash charges (affecting share-based payments expenses and impairment of non-current assets), and certain one-time income and expenses (affecting other income, offering and related expenses, etc.). Adjusted EBITDA also excludes other expenses, share in losses of associates and impairment of investment in associates because we believe it is helpful to view the performance of our business excluding the impact of entities that we do not control, and because our share of the net income (loss) of the associate and other expenses includes items that have been excluded from Adjusted EBITDA (such as finance expenses, net, tax on income and depreciation and amortization). Because Adjusted EBITDA facilitates internal comparisons of operating performance on a more consistent basis, we also use Adjusted EBITDA in measuring our performance relative to that of our competitors.

Adjusted Net Profit is a key measure used by management to observe the operational profitability of the company. We believe Adjusted Net Profit is useful to an investor in evaluating our operating performance because it measures a company’s operating performance without the effect of non-recurring items or items that are not core to our operations. For example, loss on disposals of subsidiaries and the effects of deferred taxation on excluded items do not represent the core operations of the business, and fair value adjustments recorded on business combinations and their amortization, impairment of non-current assets and share-based payments expenses do not have a substantial cash effect. Nevertheless, such gains and losses can affect our financial performance.

Payment Services segment payment volume provides a measure of the overall size and growth of the business, and increasing our payment volumes is essential to growing our profitability.

Payment Services segment net revenue yield. We calculate Payment Services segment net revenue yield by dividing Payment Services segment net revenue by Payment Services segment payment volume. Payment Services segment net revenue yield provides a measure of our ability to generate net revenue per unit of volume we process.

We define the above measures as follows:

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)