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 November 19, 2020

 

 

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 Third Quarter 2020 Financial Results” press release dated November 19, 2020
99.2    “QIWI Appoints Chief Financial Officer” press release dated November 19, 2020
99.3    Investor presentation


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.

 

    QIWI PLC (Registrant)
Date: November 19, 2020     By:  

/s/ Varvara Kiseleva    

      Varvara Kiseleva
      Interim Chief Financial Officer
     
EX-99.1

Exhibit 99.1

 

LOGO

QIWI Announces Third Quarter 2020 Financial Results

Third Quarter Total Net Revenue Increases 11% to RUB 6,637 Million and Adjusted Net

Profit Increases 73% to RUB 3,275 Million or RUB 52.49 per diluted share

QIWI reiterates 2020 Guidance

Board of Directors Approves Dividends of 34 cents per share

NICOSIA, CYPRUS – November 19, 2020 – QIWI plc (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”) today announced results for the third quarter ended September 30, 2020.

Third Quarter 2020 Operating and Financial Highlights

 

   

Total Net Revenue increased 11% to RUB 6,637 million ($83.3 million)

 

   

Payment Services Segment Net Revenue increased 11% to RUB 6,108 million ($76.7 million)

 

   

Adjusted EBITDA increased 60% to RUB 4,020 million ($50.4 million)

 

   

Adjusted Net Profit increased 73% to RUB 3,275 million ($41.1 million), or RUB 52.49 per diluted share

 

   

Payment Services Segment Net Profit increased 11% to RUB 3,633 million ($45.6 million) or RUB 58.21 per diluted share

 

   

Total Payment Services volume increased 11% to RUB 435.4 billion ($5.5 billion)

“Today I’m glad to share our third quarter 2020 financial results. This quarter we continued to demonstrate strong performance in our Payment Services segment and Other projects. Our Payment Services segment showed solid dynamics and delivered 11% segment net revenue growth supported by several factors including high density of sport events as well as growth of our strategic self-employed stream. This quarter we also successfully closed the Sovest sale transaction and concluded the wind down of Rocketbank which has reshaped our focus on core operations as well as projects that can be synergetic with our key products, consumer niches and competences,” said Boris Kim, QIWI’s chief executive officer. “Today we see increasing uncertainty related to among other things the spread of coronavirus and we closely monitor the situation as it evolves. This being said we continue to focus on optimizing and improving efficiency of our operations across all projects. Despite uncertainty and challenging economic and operational environment, we see diverse opportunities for growth in mid and long term and we believe that we are well positioned to continue expanding our business with the ultimate goal of securing our long-term growth prospects.”

Third Quarter 2020 Results

Total and Segment Net Revenues: Total Net Revenue for the quarter ended September 30, 2020 was RUB 6,637 million ($83.3 million), an increase of 11% compared with RUB 5,993 million in the prior year. The increase mainly resulted from Payment Services (PS) Segment Net Revenue growth and positive contribution of Rocketbank (RB) Segment as opposed to negative effect on Total Net Revenue for the same period of the previous year offset by Consumer Financial Services (CFS) Segment Net Revenue decline due to the sale of the SOVEST project.


Payment Services Segment Net Revenue for the quarter ended September 30, 2020 was RUB 6,108 million ($76.7 million), an increase of 11% compared with RUB 5,484 million in the prior year.

PS Payment Adjusted Net Revenue was RUB 5,303 million ($66.6 million), an increase of 13% compared with RUB 4,676 million in the prior year. PS Payment Adjusted Net Revenue growth was predominantly driven by volume growth.

PS Other Adjusted Net Revenue, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, and advertising, was RUB 806 million ($10.1 million) compared with RUB 808 million in the prior year. Fees for inactive accounts and unclaimed payments for the third quarter ended September 30, 2020 were RUB 506 million ($6.4 million) compared with RUB 484 million for the corresponding period in the prior year. PS Other Adjusted Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments decreased 7% compared with the same period in the prior year to RUB 300 million mainly due to lower interest revenue resulting primarily from lower CBR rate.

Corporate and Other Category (CO) Net Revenue includes: (i) net revenue from cash and settlement services related to the operations of the Tochka project1; (ii) net revenue from account receivable financing and digital bank guarantees products of Factoring PLUS project; (iii) net revenue from marketing solution products of Flocktory; and (iv) net revenue from other start-up projects. For the quarter ended September 30, 2020 Corporate and Other Category Net Revenue was RUB 449 million ($5.6 million) compared with RUB 268 million in the third quarter of the prior year. Category Net Revenue dynamics was driven primarily by the following factors:

 

   

Tochka Net Revenue for the quarter ended September 30, 2020 was RUB 126 million ($1.6 million) compared with RUB 199 million in the third quarter of the prior year. Tochka Net Revenue decline primarily resulted from a decrease in revenue generated from cash and settlement services due to lower number of active clients in QIWI Bank.

 

   

Factoring Net Revenue for the quarter ended September 30, 2020 was RUB 182 million ($2.3 million) compared with RUB 55 million in the third quarter of the prior year. Factoring Net Revenue growth resulted predominantly from the scaling of the project including expansion of bank guarantees and factoring portfolios.

 

   

Flocktory Net Revenue for the quarter ended September 30, 2020 was RUB 135 million. Flocktory was considered as an associate before it was consolidated as a part of the QIWI Group in the fourth quarter of 2019.

Adjusted EBITDA: For the quarter ended September 30, 2020, Adjusted EBITDA was RUB 4,020 million ($50.4 million), an increase of 60% compared with RUB 2,516 million in the prior year. The adjusted EBITDA increase was driven primarily by Total Net Revenue growth as well as a decline in selling, general and administrative expenses to RUB 711 million for the quarter ended September 30, 2020 as compared to RUB 1,510 million for same period in the prior year resulting primarily from a decrease in advertising, client acquisition and related expenses driven by the divestiture of SOVEST and Rocketbank projects. Adjusted EBITDA growth was offset by an increase in personnel expenses (excluding effect of share-based payments) to RUB 1,946 million for the quarter ended September 30, 2020 as compared to RUB 1,788 million for same period in the prior year mainly as a result of an increase of Payment Services segment

 

1 

Starting from the first quarter 2020 we present Tochka JV results as part of the Corporate and Other Category


personnel expenses as well as consolidation of Flocktory offset by a decline in personnel expenses of CFS and RB segments. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Net Revenue) was 60.6% for the quarter ended September 30, 2020 compared with 42.0% for the same period in the prior year.

Adjusted and Segment Net Profit: For the quarter ended September 30, 2020, Adjusted Net Profit (Total Segment Net Profit) was RUB 3,275 million ($41.1 million), an increase of 73% compared with RUB 1,893 million in the prior year. The growth of Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA increase as well as by higher foreign exchange gain2 offset by higher income tax expenses.

For the quarter ended September 30, 2020, Payment Services Segment Net Profit was RUB 3,633 million ($45.6 million), an increase of 11% compared with RUB 3,259 million in the prior year driven by Payment Services Segment Net Revenue growth as well as by a decline of travelling expenses and marketing and advertising expenses offset by an increase in personnel expenses (excluding effect of share-based payments).

The Consumer Financial Services Segment Net Loss for the third quarter 2020 was RUB 137 million ($1.7 million) as compared to a Net Loss of RUB 424 million for the same period of the prior year resulting primarily from a decrease in personnel expenses (excluding effect of share-based payments),selling, general and administrative expenses due to the project sale as well as credit loss recovery compared to credit loss expenses in the prior year.

Rocketbank Segment Net Loss was RUB 165 million ($2.1 million), as compared to the Net Loss of RUB 632 million in the prior year resulting mainly from a decrease in personnel expenses (excluding effect of share-based payments) and selling, general and administrative expense due to the project winding-down.

Corporate and Other Category Net Loss includes: (i) net profit from the Tochka JV operations; (ii) net profit/loss of Factoring PLUS project; (iii) net profit/loss of the Flocktory project; (iv) net profit/loss from other start-up projects, and (v) Corporate expenses. Corporate and Other Category Net Loss for the third quarter 2020 was RUB 56 million compared to a Net Loss of RUB 310 million for the same period of the previous year. The dynamic of CO category Net Loss was driven primarily by the following factors:

 

   

Corporate Net Loss for the third quarter of 2020 was RUB 408 million ($5.1 million) compared with RUB 353 million for the same period of the previous year;

 

   

Tochka Net Profit for the third quarter of 2020 was RUB 281 million ($3.5 million) compared with RUB 156 million in the same quarter of the previous year. Tochka Net Profit increase resulted from higher equity pick-up primarily driven by the growth and development of the Tochka business despite challenging operating environment.

 

   

Factoring Plus Net Profit for the third quarter of 2020 was RUB 72 million ($0.9 million) compared with Net Loss of RUB 14 million for the same period of the previous year. Factoring Plus Net Profit growth was mainly driven by project Net Revenue increase.

Payment Services Other Operating Data: For the quarter ended September 30, 2020, Payment Services Segment payment volume was RUB 435.4 billion ($5.5 billion), an increase of 11% compared with RUB 391.3 billion in the prior year. The increase in payment volume was primarily driven by growth in E-commerce and Money Remittances market verticals offset by decline in Financial Services and Telecom

 

2 

Foreign exchange gain/loss is calculated as total foreign exchange gain/loss, net recognized in the statement of comprehensive income excluding the effect of foreign exchange gain/loss on June 2014 offering proceeds


market verticals. Payment Average Adjusted Net Revenue Yield was 1.22%, increase of 2 bps as compared with 1.20% in the prior year primarily driven by volumes shift towards higher yielding verticals.

Payment Services Segment Net Revenue Yield was 1.40%, flat as compared with the prior year.

The number of active kiosks and terminals was 117,137 including Contact and Rapida physical points of service and decreased by 14% compared with the prior year. The number of kiosks and terminals is generally decreasing as market evolves towards higher share of digital payments, moreover our physical distribution network was and to a certain extend continues to be negatively affected by the spread of COVID-19 pandemic,corresponding lockdown measures and other restrictions that limited users’ access to certain retail locations as well as the overall activity of the population. Nevertheless, we believe that our physical distribution network remains an important part of our infrastructure.

The number of active Qiwi Wallet accounts was 19.7 million as of September 30, 2020, a decrease of 2.6 million, or 12%, as compared with 22.3 million as of September 30, 2019 primarily resulting from the introduction of new limitations on the anonymous wallets and consequent optimization of certain transaction processes, change of inactivity term from 6 to 12 months and enhancement of certain KYC, identification and compliance procedures. Such decline did not substantially impact our financial or operating performance due to increasing diversification of our product proposition and operating models.

Recent Developments

Rocketbank Winding down: As of September 30, 2020, we have substantially completed the process of Rocketbank B2C operations wind down. We continue to pilot certain projects that were developed earlier this year in Rocketbank in our Payment Services Segment particularly as part of our self employed stream product pipeline. The expenses associated with such pilots including predominantly personnel expenses are attributed to the Payment Services Segment starting August 1, 2020.

Dividend: In March 2020, the Board of Directors has approved a target dividend payout ratio for 2020. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2020.

Following the determination of the third quarter 2020 financial results and taking into consideration our current operating environment, our Board of Directors approved a dividend of USD 34 cents per share. The dividend record date is December 1, 2020, and the Company intends to pay the dividend on December 3, 2020. 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.

It remains the long-term intention of the Company to distribute all excess cash to the shareholders.

2020 Guidance3

QIWI reiterates its guidance in respect of 2020 outlook:

 

   

Total Net Revenue is expected to increase by 7% to 15% over 2019;

 

 

3 

Guidance is provided in Russian ruble


   

Payment Services Segment Net Revenue is expected to increase by 3% to 10% over 2019;

 

   

Adjusted Net Profit is expected to increase by 35% to 50% over 2019.

For the purpose of the guidance in respect of 2020 outlook we would like to outline the following considerations:

The outbreak of the COVID-19 strain of coronavirus and associated responses from various countries around the world is likely to negatively affect consumer demand across the globe and across industries, and there is the potential for COVID-19 and responses to it to cause a global recession. At this moment we are not able to accurately estimate the potential impact of COVID-19 on our business. In addition, it is currently unclear how much consumer demand will be negatively affected by the outbreak of COVID-19 and what effect the outbreak of COVID-19 will have on the macroeconomic environment, as a whole. The full impact remains uncertain and will depend on the length and severity of the effect of the coronavirus on economic activity in our markets. Our outlook reflects our current views and expectations only and is based on the trends we see as of the day of this report. If such trends were to deteriorate further the impact on our business and operations could be more severe than currently expected. We continue to monitor the situation closely.

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 third quarter 2020 financial results today at 8:30 a.m. ET. Hosting the call will be Boris Kim, chief executive officer, Andrey Protopopov, chief executive officer of Payment Services Segment, and Varvara Kiseleva, interim chief financial officer. 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 13712897. The replay will be available until Thursday, December 3, 2020. 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 over 19.7 million virtual wallets, over 117,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 145 billion cash and electronic payments monthly connecting over 32 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, Payment Services Segment 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 divestiture of non-core investments, including Rocketbank as well as the statements regarding the development of other new projects. 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,
2019 (audited)
     As of September 30,
2020 (unaudited)
     As of September 30,
2020 (unaudited)
 
     RUB      RUB      USD(1)  

Assets

        

Non-current assets

        

Property and equipment

     2,346        2,000        25  

Goodwill and other intangible assets

     11,316        10,926        137  

Investments in associates

     1,118        1,462        18  

Long-term debt securities and deposits

     4,015        2,328        29  

Long-term loans

     265        267        3  

Other non-current assets

     83        112        1  

Deferred tax assets

     217        261        3  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     19,360        17,356        218  
  

 

 

    

 

 

    

 

 

 

Current assets

        

Trade and other receivables

     6,162        5,682        71  

Short-term loans

     11,419        3,869        49  

Short-term debt securities and deposits

     1,136        1,965        25  

Prepaid income tax

     259        24        0  

Other current assets

     917        1,027        13  

Cash and cash equivalents

     42,101        44,205        555  

Assets held for sale

     123        42        1  
  

 

 

    

 

 

    

 

 

 

Total current assets

     62,117        56,814        713  
  

 

 

    

 

 

    

 

 

 

Total assets

     81,477        74,170        931  
  

 

 

    

 

 

    

 

 

 

Equity and liabilities

        

Equity attributable to equity holders of the parent

        

Share capital

     1        1        0  

Additional paid-in capital

     1,876        1,876        24  

Share premium

     12,068        12,068        151  

Other reserve

     2,576        2,637        33  

Retained earnings

     10,557        13,812        173  

Translation reserve

     289        545        7  
  

 

 

    

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

     27,367        30,939        388  

Non-controlling interests

     70        73        1  
  

 

 

    

 

 

    

 

 

 

Total equity

     27,437        31,012        389  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long term debt

     1,545        1,158        15  

Long-term lease liability

     1,017        772        10  

Long-term customer accounts

     444        283        4  

Other non-current liabilities

     45        37        0  

Deferred tax liabilities

     749        1,052        13  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     3,800        3,302        41  
  

 

 

    

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

     27,295        27,185        341  

Customer accounts and amounts due to banks

     21,519        11,063        139  

Short-term debt

     —          502        6  

Short-term lease liability

     340        354        4  

VAT and other taxes payable

     184        138        2  

Other current liabilities

     902        614        8  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     50,240        39,856        500  
  

 

 

    

 

 

    

 

 

 

Total equity and liabilities

     81,477        74,170        931  
  

 

 

    

 

 

    

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Three months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB(1)     RUB     USD(2)  

Revenue:

     9,122       10,833       135.9  

Payment processing fees

     7,918       9,348       117.3  

Interest revenue calculated using the effective interest rate

     388       476       6.0  

Fees from inactive accounts and unclaimed payments

     484       506       6.4  

Other revenue

     332       503       6.3  

Operating costs and expenses:

     (6,227     (7,031     (88.2

Cost of revenue (exclusive of items shown separetely below)

     (3,602     (4,424     (55.5

Selling, general and administrative expenses

     (864     (669     (8.4

Personnel expenses(3)

     (1,253     (1,645     (20.6

Depreciation and amortization

     (282     (273     (3.4

Credit loss (expense)/recovery

     (28     (20     (0.3

Impairment of non-current assets

     (198     —         —    

Profit from operations

     2,895       3,802       47.7  
  

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     149       256       3.2  

Other income and expenses, net

     (47     17       0.2  

Foreign exchange gain

     160       498       6.2  

Foreign exchange loss

     (93     (364     (4.6

Interest income and expenses, net

     1       (13     (0.2
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     3,065       4,196       52.7  

Income tax expense

     (648     (908     (11.4
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     2,417       3,288       41.3  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss from discontinued operations

     (1,229     (245     (3.1
  

 

 

   

 

 

   

 

 

 

Net profit

     1,188       3,043       38.2  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     1,173       3,014       37.8  

Non-controlling interests

     15       29       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

     33       116       1.5  

Debt securities at fair value through other comprehensive income (FVOCI):

      

Net gains arising during the period, net of tax

     15       —         —    

Net gains recycled to profit or loss upon disposal

     —         —         —    

Total other comprehensive income/(loss), net of tax

     48       116       1.5  
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     1,236       3,159       39.6  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     1,220       3,128       39.3  

Non-controlling interests

     16       31       0.4  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     18.96       48.36       0.61  

Diluted, profit attributable to ordinary equity holders of the parent

     18.77       48.29       0.61  

 

(1)

Amounts do not correspond with the previously presented ones due to discontinued operations.


(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(3)

Historically, personnel expenses directly associated with revenue recognized were disclosed within cost of revenue and personnel expenses associated with all other activities were disclosed within selling, general, and administrative expenses. Starting full year 2019 reporting we present all personnel expenses as a single item in a Personnel expenses line. Personnel expenses for the quarter ended September 30, 2019 were separated from cost of revenue and selling, general and administrative expenses and presented in a separate line for comparative purposes.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Nine months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB(1)     RUB     USD(2)  

Revenue:

     26,303       29,663       372.3  

Payment processing fees

     22,408       25,079       314.7  

Interest revenue calculated using the effective interest rate

     1,417       1,687       21.2  

Fees from inactive accounts and unclaimed payments

     1,400       1,497       18.8  

Other revenue

     1,078       1,400       17.6  

Operating costs and expenses:

     (17,002     (18,950     (237.8

Cost of revenue (exclusive of items shown separetely below)

     (10,169     (11,777     (147.8

Selling, general and administrative expenses

     (2,198     (1,872     (23.5

Personnel expenses(3)

     (3,589     (4,422     (55.5

Depreciation and amortization

     (850     (802     (10.1

Credit loss (expense)/recovery

     2       (45     (0.6

Impairment of non-current assets

     (198     (32     (0.4

Profit from operations

     9,301       10,713       134.4  
  

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     78       495       6.2  

Other income and expenses, net

     8       (6     (0.1

Foreign exchange gain

     610       1,848       23.2  

Foreign exchange loss

     (760     (1,953     (24.5

Interest income and expenses, net

     8       (57     (0.7
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     9,245       11,040       138.5  

Income tax expense

     (1,894     (2,253     (28.3
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     7,351       8,787       110.3  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss from discontinued operations

     (3,152     (2,308     (29.0
  

 

 

   

 

 

   

 

 

 

Net profit

     4,199       6,479       81.3  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     4,160       6,417       80.5  

Non-controlling interests

     39       62       0.8  

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

     (194     269       3.4  

Debt securities at fair value through other comprehensive income (FVOCI):

 

   

Net gains arising during the period, net of tax

     15       32       0.4  

Net gains recycled to profit or loss upon disposal

     —         (47     (0.6

Total other comprehensive income/(loss), net of tax

     (179     254       3.2  
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

     4,020       6,733       84.5  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     3,986       6,658       83.6  

Non-controlling interests

     34       75       0.9  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     67.43       103.16       1.29  

Diluted, profit attributable to ordinary equity holders of the parent

     66.68       102.94       1.29  

 

(1)

Amounts do not correspond with the previously presented ones due to discontinued operations.


(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(3)

Historically, personnel expenses directly associated with revenue recognized were disclosed within cost of revenue and personnel expenses associated with all other activities were disclosed within selling, general, and administrative expenses. Starting full year 2019 reporting we present all personnel expenses as a single item in a Personnel expenses line. Personnel expenses for the nine months ended September 30, 2019 were separated from cost of revenue and selling, general and administrative expenses and presented in a separate line for comparative purposes.


QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

 

     Nine months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB     RUB     USD(1)  

Operating activities

      

Profit before tax from continuing operations

     9,245       11,040       139  

Loss before tax from discontinued operations

     (3,831     (2,509     (31

Profit before tax

     5,414       8,531       107  
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile profit before tax to net cash flows:

      

Depreciation and amortization

     1,079       967       12  

Foreign exchange loss, net

     149       130       2  

Interest income, net

     (2,113     (2,145     (27

Credit loss expense

     460       825       10  

Share of gain of an associate and a joint venture

     (78     (495     (6

Loss from sale of Sovest loans’ portfolio

     —         712       9  

Share-based payments

     391       85       1  

Loss from initial recognition

     151       27       0  

Impairment of non-current assets

     526       134       2  

Other

     65       (47     (1

Working capital adjustments:

      

Decrease in trade and other receivables

     1,355       1,222       15  

Decrease/(Increase) in other assets

     9       (115     (1

Increase/(decrease) in customer accounts and amounts due to banks

     157       (11,437     (144

Decrease in accounts payable and accruals

     (5,638     (1,675     (21

(Increase)/decrease in loans issued from banking operations

     (1,387     5,993       75  
  

 

 

   

 

 

   

 

 

 

Cash received from operations

     540       2,712       34  
  

 

 

   

 

 

   

 

 

 

Interest received

     2,615       2,621       33  

Interest paid

     (109     (421     (5

Income tax paid

     (1,266     (1,465     (18
  

 

 

   

 

 

   

 

 

 

Net cash flow received from operating activities

     1,780       3,447       43  
  

 

 

   

 

 

   

 

 

 

Investing activities

      

Cash paid for acquisitions

     (200     (89     (1

Purchase of property and equipment

     (594     (226     (3

Purchase of intangible assets

     (235     (179     (2

Proceeds from sale of fixed and intangible assets

     173       162       2  

Loans issued

     (353     (12     (0

Repayment of loans issued

     33       —         —    

Purchase of debt instruments and deposits

     (3,686     (2,355     (30

Proceeds from sale and redemption of debt instruments

     1,412       3,230       41  

Dividends received from an assosiate

     —         153       2  
  

 

 

   

 

 

   

 

 

 

Net cash flow (used in)/received from investing activities

     (3,450     684       9  
  

 

 

   

 

 

   

 

 

 

Financing activities

      

Proceeds from borrowings

     —         105       1  

Payment of principal portion of lease liabilities

     (371     (275     (3

Dividends paid to owners of the Group

     (2,278     (3,201     (40

Dividends paid to non-controlling shareholders

     (39     (67     (1
  

 

 

   

 

 

   

 

 

 

Net cash flow used in financing activities

     (2,688     (3,438     (43
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (819     1,411       18  

Net (decrease)/increase in cash and cash equivalents

     (5,177     2,104       26  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     40,966       42,101       528  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     35,789       44,205       555  
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.


QIWI plc.

Reporting Segments Data

(in millions)

 

     Three months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB     RUB     USD (1)  

Total Net Revenue

     5,993       6,637       83.3  
  

 

 

   

 

 

   

 

 

 

Payment Services

     5,484       6,108       76.7  

Consumer Financial Services

     369       64       0.8  

Rocketbank

     (128     16       0.2  

Corporate and Other

     268       449       5.6  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Profit(2)

     1,893       3,275       41.1  
  

 

 

   

 

 

   

 

 

 

Payment Services

     3,259       3,633       45.6  

Consumer Financial Services

     (424     (137     (1.7

Rocketbank

     (632     (165     (2.1

Corporate and Other

     (310     (56     (0.7
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(2)

For the three months ended September 30, 2019 and September 30, 2020 Total Adjusted Net Profit is equal to Total Segment Net Profit.

QIWI plc.

Reporting Segments Data

(in millions)

 

     Nine months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB     RUB     USD (1)  

Total Net Revenue

     16,923       19,736       247.7  
  

 

 

   

 

 

   

 

 

 

Payment Services

     15,478       16,826       211.2  

Consumer Financial Services

     870       1,067       13.4  

Rocketbank

     (423     548       6.9  

Corporate and Other

     998       1,295       16.2  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Profit(2)

     5,511       7,785       97.7  
  

 

 

   

 

 

   

 

 

 

Payment Services

     9,453       9,927       124.6  

Consumer Financial Services

     (1,391     (793     (10.0

Rocketbank

     (1,633     (781     (9.8

Corporate and Other

     (918     (568     (7.1
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(2)

For the nine months ended September 30, 2019 and September 30, 2020 Total Adjusted Net Profit is equal to Total Segment Net Profit.


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents PS Payment Adjusted Net Revenue, PS Other Adjusted 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 PS Payment Adjusted Net Revenue and PS Other Adjusted 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 PS Payment Adjusted Net Revenue, PS Other Adjusted 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 Adjusted Net Revenue, PS Other Adjusted 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 Adjusted Net Revenue and PS Other Adjusted 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 Adjusted Net Revenue is the Adjusted Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment adjusted 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 adjusted net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittances payment adjusted 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 adjusted net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment adjusted 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 Adjusted 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)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB (1)     RUB     USD(2)  

Revenue (3)

     10,142       11,087       139.1  

Minus: Cost of revenue (exclusive of depreciation and amortization) (4)

     4,149       4,449       55.8  
  

 

 

   

 

 

   

 

 

 

Total Net Revenue

     5,993       6,637       83.3  
  

 

 

   

 

 

   

 

 

 

Segment Net Revenue

      

Payment Services Segment Revenue

     8,991       10,398       130.5  

PS Payment Revenue(5)

     7,918       9,348       117  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(6)

     3,242       4,045       51  
  

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

     4,676       5,303       66.6  
  

 

 

   

 

 

   

 

 

 

PS Other Revenue(7)

     1,075       1,050       13  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(8)

     267       244       3  
  

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

     808       806       10.1  
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

     5,484       6,108       76.7  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

     438       72       0.9  

Minus: Cost of CFS revenue (exclusive of depreciation and amortization)

     69       8       0.1  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

     369       64       0.8  
  

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

     344       26       0.3  

Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)

     472       10       0.1  
  

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

     (128     16       0.2  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

     369       591       7.4  

Minus: Cost of CO revenue (exclusive of depreciation and amortization)

     101       141       1.8  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

     268       449       5.6  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

     5,993       6,637       83.3  
  

 

 

   

 

 

   

 

 

 

Net Profit

     1,188       3,043       38.2  
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     389       317       4.0  

Other income and expenses, net

     47       (17     (0.2

Foreign exchange gain

     (164     (498     (6.2

Foreign exchange loss

     97       373       4.7  

Share of loss/(gain) of an associate and a joint venture

     (149     (256     (3.2

Interest income and expenses, net

     7       23       0.3  

Income tax expenses

     440       889       11.2  

Expenses related to form F-3 filing

     —         55       0.7  

Loss from sale of Sovest loans’ portfolio

     —         54       0.7  

Share-based payments expenses

     135       37       0.5  

Impairment of non-current assets

     526       —         —    
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     2,516       4,020       50.4  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     42.0     60.6     60.6

Net profit

     1,188       3,043       38.2  

Fair value adjustments recorded on business combinations and their amortization(9)

     105       87       1.1  

Expenses related to form F-3 filing

     —         55       0.7  

Share-based payments expenses

     135       37       0.5  

Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (10)

     (53     —         —    

Impairment of non-current assets

     526       —         —    

Loss from sale of Sovest loans’ portfolio

     —         54       0.7  

Effect of taxation of the above items

     (8     (1     (0.0
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     1,893       3,275       41.1  
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     30.59       52.55       0.66  

Diluted

     30.30       52.49       0.66  

Weighted-average number of shares used in computing Adjusted Net Profit per share

      

Basic

     61,876       62,324       62,324  

Diluted

     62,483       62,404       62,404  


 

(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 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(3)

Including revenue from discontinued operations in the amount of RUB 1,020 million for the third quarter ended September 30, 2019 and RUB 254 million for the third quarter ended September 30, 2020.

(4)

Including cost of revenue from discontinued operations of RUB 547 million for the third quarter ended September 30, 2019 and RUB 26 million for the third quarter ended September 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.

(10)

The Forex loss on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss and Foreign exchange gain in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only includes the foreign exchange loss/(gain) on the US dollar amount, which we received at SPO.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Nine months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB(1)     RUB     USD(2)  

Revenue (3)

     28,646       32,277       405.1  

Minus: Cost of revenue (exclusive of depreciation and amortization) (4)

     11,723       12,541       157.4  
  

 

 

   

 

 

   

 

 

 

Total Net Revenue

     16,923       19,736       247.7  
  

 

 

   

 

 

   

 

 

 

Segment Net Revenue

      

Payment Services Segment Revenue

     25,429       28,214       354.1  

PS Payment Revenue(5)

     22,408       25,079       315  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(6)

     9,145       10,573       133  
  

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

     13,263       14,506       182.0  
  

 

 

   

 

 

   

 

 

 

PS Other Revenue(7)

     3,022       3,135       39  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(8)

     807       815       10  
  

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

     2,215       2,320       29.1  
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

     15,478       16,826       211.2  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

     1,025       1,198       15.0  

Minus: Cost of CFS revenue (exclusive of depreciation and amortization)

     155       131       1.6  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

  

 

870

 

    1,067       13.4  
  

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

     957       1,151       14.4  

Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)

     1,380       604       7.6  
  

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

     (423     548       6.9  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

     1,235       1,714       21.5  

Minus: Cost of CO revenue (exclusive of depreciation and amortization)

     237       419       5.3  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

     998       1,295       16.2  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

     16,923       19,736       247.7  
  

 

 

   

 

 

   

 

 

 

Net Profit

     4,199       6,479       81.3  
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     1,079       967       12.1  

Other income and expenses, net

     (8     6       0.1  

Foreign exchange gain

     (665     (1,848     (23.2

Foreign exchange loss

     814       1,978       24.8  

Share of loss/(gain) of an associate and a joint venture

     (78     (495     (6.2

Interest income and expenses, net

     18       88       1.1  

Income tax expenses

     1,215       2,052       25.8  

Expenses related to form F-3 filing

     —         65       0.8  

Loss from sale of Sovest loans’ portfolio

     —         712       8.9  

Share-based payments expenses

     391       85       1.1  

Impairment of non-current assets

     526       134       1.7  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     7,491       10,223       128.3  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     44.3     51.8     51.8

Net profit

     4,199       6,479       81.3  

Fair value adjustments recorded on business combinations and their amortization(9)

     302       256       3.2  

Expenses related to form F-3 filing

     —         65       0.8  

Share-based payments expenses

     391       85       1.1  

Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (10)

     132       —         —    

Impairment of non-current assets

     526       134       1.7  

Loss from sale of Sovest loans’ portfolio

     —         712       8.9  

Effect of taxation of the above items

     (39     54       0.7  
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     5,511       7,785       97.7  
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     89.33       125.16       1.57  

Diluted

     88.34       124.88       1.57  

Weighted-average number of shares used in computing Adjusted Net Profit per share

      

Basic

     61,693       62,200       62,200  

Diluted

     62,387       62,340       62,340  


 

(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 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(3)

Including revenue from discontinued operations in the amount of RUB 2,343 million for nine months ended September 30, 2019 and RUB 2,614 million for nine months ended September 30, 2020.

(4)

Including cost of revenue from discontinued operations of RUB 1,554 million for nine months ended September 30, 2019 and RUB 764 million for nine months ended September 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.

(10)

The Forex loss on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss and Foreign exchange gain in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only includes the foreign exchange loss/(gain) on the US dollar amount, which we received at SPO.


QIWI plc.

Other Operating Data

 

     Three months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment volume (billion)(2)

     391.3       435.4       5.5  
  

 

 

   

 

 

   

 

 

 

E-commerce

     107.0       133.9       1.7  

Financial services

     88.9       65.2       0.8  

Money remittances

     143.9       185.9       2.3  

Telecom

     42.1       36.2       0.5  

Other

     9.4       14.3       0.2  
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     4,676.4       5,303.3       66.6  
  

 

 

   

 

 

   

 

 

 

E-commerce

     2,658.6       3,122.7       39.2  

Financial services

     331.7       330.8       4.2  

Money remittances

     1,432.1       1,605.2       20.1  

Telecom

     194.9       142.9       1.8  

Other

     59.1       101.8       1.3  
  

 

 

   

 

 

   

 

 

 

Payment Average Adjusted Net Revenue Yield(4)

     1.20     1.22     1.22
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.48     2.33     2.33

Financial services

     0.37     0.51     0.51

Money remittances

     1.00     0.86     0.86

Telecom

     0.46     0.40     0.40

Other

     0.63     0.71     0.71
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue Yield

     1.40     1.40     1.40

Active kiosks and terminals (units)(5)

     136,313       117,137       117,137  

Active Qiwi Wallet accounts (million)(6)

     22.3       19.7       19.7  
  

 

 

   

 

 

   

 

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(2)

Payment Services Segment 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 Adjusted 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)

Payment Average Adjusted Net Revenue Yield is defined as PS Payment Adjusted Net Revenue divided by Payment Services payment segment volume.

(5)

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.

(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 prior to the reporting date.

(7)

Consumer Financial Services segment payment volume consists of the transaction amounts paid by SOVEST card customers to merchants offline and online (including, but not limited to the partner-merchants) or withdrawn through ATMs less the amount returned for corresponding reimbursements.


QIWI plc.

Other Operating Data

 

     Nine months ended (unaudited)  
     September 30, 2019     September 30, 2020     September 30, 2020  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment volume (billion)(2)

     1,088.1       1,152.6       14.5  
  

 

 

   

 

 

   

 

 

 

E-commerce

     300.0       343.3       4.3  

Financial services

     244.2       186.5       2.3  

Money remittances

     392.9       472.4       5.9  

Telecom

     122.3       118.9       1.5  

Other

     28.7       31.5       0.4  
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     13,263.2       14,506.4       182.0  
  

 

 

   

 

 

   

 

 

 

E-commerce

     7,651.1       8,523.2       107.0  

Financial services

     874.5       930.9       11.7  

Money remittances

     4,043.3       4,273.6       53.6  

Telecom

     529.3       573.0       7.2  

Other

     165.0       205.7       2.6  
  

 

 

   

 

 

   

 

 

 

Payment Average Adjusted Net Revenue Yield(4)

     1.22     1.26     1.26
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.55     2.48     2.48

Financial services

     0.36     0.50     0.50

Money remittances

     1.03     0.90     0.90

Telecom

     0.43     0.48     0.48

Other

     0.57     0.65     0.65
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue Yield

     1.42     1.46     1.46

Active kiosks and terminals (units)(5)

     136,313       117,137       117,137  

Active Qiwi Wallet accounts (million)(6)

     22.3       19.7       19.7  
  

 

 

   

 

 

   

 

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 79.6845 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2020.

(2)

Payment Services Segment 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 Adjusted 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)

Payment Average Adjusted Net Revenue Yield is defined as PS Payment Adjusted Net Revenue divided by Payment Services payment segment volume.

(5)

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.

(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 prior to the reporting date.

(7)

Consumer Financial Services segment payment volume consists of the transaction amounts paid by SOVEST card customers to merchants offline and online (including, but not limited to the partner-merchants) or withdrawn through ATMs less the amount returned for corresponding reimbursements.

EX-99.2

Exhibit 99.2

 

LOGO

QIWI Appoints Chief Financial Officer

NICOSIA, CYPRUS – November 19, 2020 – 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 the appointment of Pavel Korzh as Chief Financial Officer effective December 1, 2020. As Chief Financial Officer, Mr. Korzh will take over the responsibilities of interim CFO Varvara Kiseleva and report directly to CEO of the Group, Mr. Boris Kim. Ms. Varvara Kiseleva will continue to serve as Deputy CFO for Corporate Finance.

Mr. Korzh has over 20 years of experience in corporate and operational finance. He has joined QIWI in August 2020 as a CFO of QIWI Bank. Before joining QIWI, Mr Korzh worked as a CFO at Ozon, a leading E-Commerce company in Russia and Wikimart, an online marketplace. Previously he worked as a Director of Treasury and Corporate Finance and Director of Financial Reporting at CTC Media and held various positions at PricewaterhouseCoopers.

Mr. Korzh graduated from Moscow State Institute of International Relations (MGIMO University) in 1996 with a degree in International Economic Relations.

“Pavel has held several financial leadership roles prior to joining QIWI. I’m convinced that his extensive experience in finance and clear focus on delivering results will be extremely helpful to QIWI in supporting our growth and execution of our strategy,” commented Mr. Boris Kim, QIWI’s Chief Executive Officer and Director. “I am confident that his expertise will be valuable to us and I am pleased to welcome Pavel as part of our team.”

“I am looking forward to becoming a part of QIWI team and leading QIWI’s finance function to contribute to Group success as the Company develops. I like to analyze data and processes to generate ideas which could improve the economics of the business. I’m looking forward to supporting the Company in reaching its key objectives and creating value for the stakeholders,” stated Mr. Korzh.

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 over 19.7 million virtual wallets, over 117,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 145 billion cash and electronic payments monthly connecting over 32 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.

Contact

Investor Relations

+357.25028091

ir@qiwi.com

EX-99.3

Slide 1

Company Presentation November 2020 Exhibit 99.3


Slide 2

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. For a description of the risks we face, see the “Risk Factors” section of the Form 20-F that we filed with the Securities and Exchange Commission on March 24, 2020, which is available by visiting the SEC’s website at www.sec.gov. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In addition to International Financial Reporting Standards, or IFRS, financials, this presentation includes certain non-IFRS financial measures. These non-IFRS financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. A reconciliation of non-GAAP measures to the most directly comparable IFRS measures is contained in the appendix to this presentation. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.


Slide 3

QIWI IS A LEADING PROVIDER OF NEXT GENERATION PAYMENT AND FINANCIAL SERVICES WITH A PROVEN TRACK-RECORD OF INNOVATION Prepaid mobile top-up cards Push Payments Self-Service kiosks QIWI Wallet PayTech innovation Tochka QIWI Visa Card Card to card payments Money Remittance FUTURE 1999 2003 2006 2008 2018 2009 2012 2016 Open API Merger of OSMP and E-port IPO on NASDAQ 2015 2007 2013 Listing on MOEX 2019 2020 Flocktory Factoring PLUS SOVEST Sale of SOVEST


Slide 1

Key facts1 4 TODAY QIWI IS AN INTEGRATED OMNI-CHANNEL ECOSYSTEM WITH EXTENSIVE ADOPTION AND UBIQUITOUS PRESENCE… Leading provider of next-gen payment and financial services in Russia and the CIS CAGR 26% RUB bn Total Net Revenue2 Note: 1 As of September 30, 2020 if not stated otherwise, for additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on November 19, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 and Terms and Definitions section of the presentation; 2 Including Contact and Rapida financial results starting from June 2015. Including Flocktory financial results starting from December 2019; 3Data for 9 months ending on 30.09.2020 Key facts1 Payment volume LTM ending September 30, 2020 over1.5 tn RUB Active QIWI wallets 19.7+ mn Unique ecosystem users 32+ mn Kiosks and terminals 117+ k Payment services Total Net Revenue Payment Services Segment Net Revenue 17% Portfolio of B2B services QIWI startups QIWI DATA Includes Rocketbank and Sovest operations 85% Share of Payment Services Segment3 Convenient digital solutions Core focus on specialized high growth markets lacking convenient digital solutions Self-employed Sharing economy (B2B2C) Digital entertainment


Slide 5

PAYMENT SERVICES


Slide 6

… WITH CORE EXPERTISE IN OFFERING A BROAD RANGE OF NEXT GENERATION MULTI USE-CASE PAYMENT SERVICES Kiosks and terminals Open API solution VISA pre-paid cards Contact money remittance Digital wallet Payment Gateway to retail partners Payment services Payment Services B2B solutions online acquiring and payouts to cards


Slide 7

DISTINCTIVE COMPETITIVE ADVANTAGES AND MONETIZATION MODEL Competitive advantages of QIWI’s services Payment Services QIWI WALLET Pay for goods and services merchant pays % to QIWI Transfer Money user pays % to QIWI Cash out user pays % to QIWI Top up with Cash Free for user QIWI pays % to the agent Top up with the Card Free for user QIWI pays % to the bank Money Transfers/ Payouts Free for user. Free for QIWI. The transferor (B2B customer or partner) pays % to QIWI Strong track record in market segments with demand for cash acceptance, payment digitalization, technological solutions and higher transparency of transactions Convenient digital solutions Single and intuitive interface, easy access Automation of payments via open API Instant payouts to hundreds of customers Multi-service platform with fast and seamless onboarding Privacy High quality and reliable services, fast customer response High level of customization Cash digitalization for high cash use population Efficient transactional monetization model


Slide 8

E-commerce 59% Money remittances 30% Financial services 6% Telecom 4% Others 1% Money remittances 41% E-commerce 30% Financial services 16% Telecom 10% Others 3% SERVICING A WIDE AND GROWING RANGE OF MARKETS AND USE-CASES Note: 1 As of September 30, 2020 if not stated otherwise, for additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on November 19, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 and Terms and Definitions section of the presentation; 2 Defined as Payment Services Segment Payment Adjusted Net Revenue divided by Payment Services segment payment volume Payment Services Payment Volume1 9m 2020 Payment Services PS Payment Adjusted Net Revenue and Average Adjusted Net Revenue Yield1 RUB bn CAGR 18% CAGR 23% PS Payment Adjusted Net Revenue, RUB bn Payment Average Adj. Net Revenue Yield2 9m 2020 6% 9%


Slide 9

Escrow payments for large platforms SPECIALIZING ON HIGH GROWTH MARKETS THAT LACK CONVENIENT DIGITAL SOLUTIONS Self-employed entrepreneurs B2B2C Go2Market for self-employed working for businesses Digital entertainment in 20195 Online gaming TAM ~ 34 RUB bn Source: company data, Analytical Center for the Government of the Russian Federation, Rosstat, broker reports, Statista Note: 1 According to forecast of Analytical Center for the Government of the Russian Federation; 2 Number of connected taxi companies as of September 30, 2020.3 According to Rosstat as of 2Q 2019; 4 According to Rosstat as of 2Q 2019 and brokers’ assumptions on average monthly income of self-employed in Russia; 5 According to Statista 01 Easy and scalable payment solution for online games, sports betting and new age digital entertainment 02 Benefits from being 1 out of 2 TSUPIS operators in Russia Self-employed in Russia in 20193 15 + million TAM ~7 RUB trillion Total annual payment to self-employed4 6 % of GDP Share of 2019 GDP4 Payment Services 03 Convenient payment solution for customers and merchants Payments solutions Examples of taxi companies Payouts to wallets/cards for marketplaces >2,700 taxi companies2 B2B partners / sharing economy merchants ~725 RUB bn Russian taxi market GMV 20191 Paying to self-employed contractors Salary payments quick solution Convenient payment solution for personal needs P2P and wallets as a platform QIWI Wallet API Automatization of wallet operations Accept payments via QIWI Wallet P2P checkout with easy integration


Slide 10

OTHER PROJECTS


Slide 11

Sponsored Push Notification Second Party Data Exchange First Party Data DEVELOPING B2B VALUE PROPOSITION SYNERGETIC TO PAYMENT SERVICES BUSINESS: OVERVIEW OF KEY PROJECTS Debit card, deposits, overdraft Acquiring Payroll settlement Bank guarantees Banking products Loyalty program Online accounting Tax calendar and electronic submission of filings Sole Traders & LLC registration Financial services Online onboarding of clients and support 24/7 service Online dashboards and analytics Client-friendly solutions bn RUB Client deposit balances2 Factoring financing for SMEs with high credit quality Debtors Factoring account receivable financing Totally digital on-boarding and services 100% electronic document workflow Instant scoring, fast decision and issue of funding Digital Bank Guarantees Performance and tender bonds Guarantees for contractors (mostly for public procurement) Totally digital on-boarding and services 100% electronic document workflow Instant scoring, fast decision and issue of funding Signals a customer’s data base Exchange a Partner Network for an active inflow of clients PushRewards a module for smart PUSH notifications Pre-Checkout a module for personalization of users’ web experience Post-Checkout a referral marketing module Workflow a module that helps to personalize communication content Xmail/XPush Module for cross-sale and retargeting Feedback a module for collecting, analyzing and managing feedbacks Note: Note: All presented financials are shown on gross basis for QIWI; 1 QIWI recognizes SME revenues from Tochka clients only with accounts in QIWI Bank. The rest of Tochka clients with accounts in Otkritie bank are included in Tochka JV and accounted as an associate under the equity method. QIWI holds 40% of Tochka’s shares but is entitled for 45% of dividends and potential capital gains. As a result, QIWI Group assesses its share in Tochka JV at 45% (according to its share in dividends and potential capital gains). Remaining dividends and capital gains are distributed as follows: Bank Otkritie and Tochka management to receive 45% and 10% of dividends and potential capital gains, respectively; 2 As of 31 December, 2019, for additional details, please see QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 Digital bank for small and medium enterprises SaaS platform for customer lifecycle management and personalization Digital factoring solutions and bank guarantees for SME


Slide 1

12 FACTORING PLUS Digital factoring solutions and bank guarantees for SME Factoring active clients 400+ acc Key facts1 Average guarantees’ lifetime 538+ days Factoring performance Digital bank guarantees portfolio, bn #5 In terms of number of new clients involved in factoring2 #4 In terms of number of active SME clients using factoring2 4.7% Market share on the bank guarantees market 1As of September 30, 2020 if not stated otherwise, for additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on March 24, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on March 28, 2019 and Terms and Definitions section of the presentation: 2As of June 30,2020 NPL of factoring portfolio 0.3% NPL of guarantees portfolio 0.1% Factoring portfolio breakdown Factoring operations’ key industries: Pharmaceutical Food-products Clothing and footwear Household appliance and electronics of factoring operations concentrated in a single industry <25% Guarantees in portfolio 7+ k


Slide 13

FINANCIAL UPDATE


Slide 14

SOLID PERFORMANCE FOR 9M 2020 WITH GROWING PAYMENT SERVICES VOLUMES AND NET REVENUE Key highlights Key financials1 +18% Total Net Revenue y-o-y increase +27% PS Segment Net Revenue y-o-y increase +53% Adjusted Group EBITDA y-o-y increase +61% Adjusted Group Net Profit y-o-y increase RUB bn Note: 1 Including Flocktory financial results starting from December 2019 +17% +9% +36% +41% FY 2019 9m 2020 Includes Rocketbank and Sovest operations


Slide 2

RUB bn CAGR 21% 17% Includes Rocketbank and Sovest operations Note: 1 As of September 30, 2020 if not stated otherwise, for additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on November 19, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 and Terms and Definitions section of the presentation; 2 Including Contact and Rapida financial results starting from June 2015. Including Flocktory financial results starting from December 2019 PS Segment Total Net Revenue PS Segment Net Revenue Yield CAGR 19% 9% RUB bn Group’s Total Net Revenue1,2 and Net Revenue split Payment Services Segment Total Net Revenue and Yield1,2 STRONG TRACK RECORD OF GROWTH IN NET REVENUE DRIVEN BY PAYMENT SERVICES 9m 2020 Payment Services Corporate and Other Consumer Financial Services Rocketbank 15


Slide 1

EXPECTED DECREASE IN KEY COST CATEGORIES POST SALE OF SOVEST AND WINDING DOWN OF ROCKETBANK Group expenses1,2 Note: 1 For additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on November 19, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 and Terms and Definitions section of the presentation; 2 Comprises SG&A expenses and personnel expenses. Including Flocktory financial results starting from December 2019; 3 Includes IT related expenses, net loss (gain) from initial recognitions, Form F-3 related expenses, and other expenses RUB bn Compensation, client acquisition and advertising expenses were higher in 2017/2018 due to roll-out of new projects – Sovest, Rocketbank, Tochka Group expenses breakdown1,2 % of total expenses Personnel expenses Advisory and audit services Advertising, client acquisition and related expenses Rent of premises and related utility expenses Expenses related to Tochka multi-bank platform services Tax expenses, except income and payroll related taxes 9m 2020 Other3 Group expenses growth was mainly driven by development of SOVEST and Rocketbank projects 4.3 4.6 8.1 13.8 4.3 14.0 8.8 9.4 6 Includes Rocketbank and Sovest expenses Includes Rocketbank and Sovest expenses


Slide 3

ROBUST PROFITABILITY OF CORE PAYMENT SERVICES BUSINESS Adjusted EBITDA1,2 Adjusted Net Profit1,2 Note: 1 For additional details, please see QIWI’s Earnings Report on Form 6-K filed with the Securities and Exchange Commission on September 30, 2020, QIWI’s latest annual report on Form 20-F filed with the Securities and Exchange Commission on 24 March, 2020 and Terms and Definitions section of the presentation; 2 Including Flocktory financial results starting from December 2019 RUB bn Ramp-up of new projects had a temporary impact on Group profitability and margins RUB bn Adjusted EBITDA margin Adjusted Net Profit margin2 Includes Rocketbank and Sovest operations Includes Rocketbank and Sovest operations Adjusted Net Profit2 PS Segment Adjusted Net Profit 17


Slide 18

Capital allocation strategy GROUP CAPITAL ALLOCATION STRATEGY Using cash generated by the Payment Services business to increase distributions to shareholders and invest into future growth Payment Services Business Future Growth Return to Shareholders Capital Expenditures Change in Working Capital Investments in New Projects and Product Development M&A Dividends Share buybacks ~6% of Payment Services Segment Net Revenue Negative ~7% of Payment Services Segment Net Revenue Reinvest remaining profits in future growth Evaluate opportunistically Payout ratio of 50% of Group Adjusted Net Profit in 2020 Average historical payout ratio 65+% Group Adjusted Net Profit1 Evaluate opportunistically 1Average historical payout ratio is calculated as total amount of dividend declared for a fiscal year divided by the Group Adjusted Net Profit for the respective fiscal year. For the purpose of calculation 2018 fiscal year is excluded as the Company did not distribute any dividend for the year ended December 31, 2018.


Slide 19

2020 GUIDANCE Total Adjusted Net Revenue growth Adjusted Net Profit growth Payment Services Segment Net Revenue change 7% to 15% over 2019 3% to 10% over 2019 35% to 50% over 2019 Notes At this moment we are not able to accurately estimate the potential impact of the COVID-19 on our business, including the negative effect on the betting industry It is currently unclear how much consumer demand will be negatively affected by the outbreak of COVID-19 and what effect the outbreak of COVID-19 will have on the macroeconomic environment, as a whole. The full impact remains uncertain and will depend on the length and severity of the effect of the coronavirus on economic activity in our markets The full scope of the negative impact that the abrupt decline in oil prices and resulting devaluation of the ruble may have on the Russian economy also remains unclear but has the potential to be very significant. Key metrics1,2 Note: 1 For additional details, please see QIWI’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 24, 2020 and Terms and Definitions section of the presentation; 2 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.


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01 TRACK RECORD OF INNOVATION 02 INTEGRATED OMNI-CHANNEL ECOSYSTEM OFFERING A BROAD RANGE OF NEXT GENERATION MULTI USE-CASE PAYMENT SERVICES 03 SERVICING SPECIALIZED HIGH GROWTH MARKETS THAT LACK CONVENIENT DIGITAL SOLUTIONS 04 SIGNIFICANT GROWTH POTENTIAL OF CORE PAYMENT SERVICES SEGMENT DRIVEN BY POSITIVE SECULAR TRENDS IN KEY UNDERLYING MARKETS 05 PROPRIETARY PAYMENT CAPABILITIES ALLOWING QIWI TO DIFFERENTIATE ITSELF 06 ATTRACTIVE FINANCIAL PROFILE WITH ROBUST PROFITABILITY PROVIDING FOR DIVIDEND PAYMENTS UPSIDE KEY INVESTMENT HIGHLIGHTS


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APPENDIX


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COMPLIANCE WITH PAYMENT AND FINANCIAL SERVICES REGULATION Source: company data, CBR Note: 1 Federal Law of Russian Federation No. 161-FZ “On the National Payment System” dated June 27, 2017: 2 Federal Law of Russian Federation No. 353-FZ “On Consumer Credits (Loans)” dated December 21, 2013; 3 Foreign Account Tax Compliance Act; 4 Common Reporting Standard; 5 Converted to USD at CBR USDRUB FX rate of 70.5198 as of 3 July 2020 Payment and financial services regulation AML regulation Payment services Virtual wallet operators legally considered as cashless transfers within the use of bank cards and prepaid cards Prepaid cards regulated as electronic means of payment in line with “Payment System Law”1 Supervisory body: CBR Money remittances Contact has a status of nationally significant payment system Regulated by “Payment System Law”1 Supervisory body: CBR Betting regulation All interactive bets may be only accepted through Interactive Bets Accounting Center (TSUPIS) set up by a credit organization together with a self-regulated association of bookmakers QIWI BANK is a TSUPIS since 2016 Banking regulation QIWI Bank is subject to all the applicable banking regulations in Russia QIWI Bank holds a universal banking license Regulation implies conformity with a number of requirements including capital and reserve requirements, loss provisions, prudential ratios and reporting requirements In Russia, financial services providers should comply with the national anti-money laundering and counter-terrorism financing legislation, as well as requirements of FATCA3 and CRS4 Federal Financial Monitoring Service, or Rosfinmonitoring, is the supervisory body for the purposes of AML Financial services providers are generally required to identify their clients, whether legal entities or individuals Money transfers by individuals below RUB 15,000 (ca.$2135) are generally exempt from identification requirement P2P and transfers to foreign entities and certain kinds of non-profits require at least a simplified identification of the customer regardless of the amount Identification types Wallet balance limit Monthly turnover limit No identification Simplified identification Full identification RUB 15,000 RUB 40,000 RUB 60,000 RUB 200,000 RUB 600,000 No limit


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RISK FRAMEWORK: KEY RISKS AND MITIGATION PRACTICES Key risk mitigation tools and strategies Risk assessment focus areas Monitoring of bills, participation in legislative initiatives Deployed compliance management system Constant development of AML/CFT function Development of customer identification KYC Credit Committee monitors and sets credit limits Sophisticated risk models QIWI SDLC Process is built-in company development process Internal access using NGFW and home made user control Two factor authentication and server-side fraud monitoring system Automatization of on-boarding procedures for individuals and entities Focus on anti-cyclical niches Board oversees strategy and monitors the development of key projects Legislative and regulatory risks: Banking license Personal Data Currency controls (cross boarder) Credit and counterparty risks Cybersecurity and fraud risks Geo-political, macro and sanctions risks Strategy and execution risks


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ESG HIGHLIGHTS Corporate governance platform Government relations Social responsibilities of BoD is independent 43% 3 board committees All headed by INEDs Respected board members 7 international shareholders Reputable Educational program launched in 2014 QIWI FINTEEN Children already participated in different Finteen activities 150,000+ Employees involved into the program organization 200+ QIWI works together with charitable organizations and provides them with customized payment solutions so that fundraising is simpler, faster and less costly Charity Membership in for remote identification of individuals Advisory group member in the National Program “Digital economy” Participant in preparation of amendments to the Federal Law “On the National Payment System” Actively participated


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QIWI Investor Relations Contacts: ir@qiwi.com +357 250228091