FY23 RESULTS

PRESENTATION

27 June 2023 1
Kristo Käärmann
Co-founder and CEO

2
 MONEY WITHOUT
BORDERS

We’re building the best way to move and manage the world’s
money. Making it faster, cheaper, easier and more
transparent for people and businesses.

3
∼£2t+
moved cross currency
annually by people

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∼£9t+
moved
annually by SMBs

5
 What customers are saying

Sending money International Underlying

across borders banking technology

Traditionally slow, International bank Infrastructure has

expensive and hard accounts don’t really not evolved in
to do exist decades

What we’re doing about it

We’ve made We’re creating the
We’re building Wise
transfers easy, fast network the world’s
Account
and low cost money needs
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We’re building a valuable product.

FY19 3.3m £27bn £179m £26m

Active
Volume Income Adj. EBITDA
customers

FY23 10.0m £105bn £964m £239m

3.0x 3.9x 5.4x 9.3x

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 5%
Personal
<1%SMB
market share market share

Source: Market size based on EDC study (2022); SMB includes small and medium sized businesses.
8
 What makes Wise a generational company?

A massive We have We’re building the Wise is growing

problem for people evangelical network for the fast and profitable
and businesses customers world’s money

International
Large addressable Word of mouth Creating a
bank accounts do
market led growth valuable company
not really exist

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EVANGELICAL
CUSTOMERS

02 10
We create virality
led growth.
66%
of customers join through
Word of Mouth

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 We build products customers love
What customers say about their traditional options (e.g. their bank)

X X X X

Slow Expensive Opaque Inconvenient

Wise

Instant Low cost Trusted Convenient

Low-friction
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 We are investing in three products

Wise Account Wise Business Wise Platform

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It’s expensive to hold money in a
traditional UK current account

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Read more from our Mission Updates

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>50% >80%
of all new customers …for new
now joining to use Brazil-based
multiple features... customers

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36% 55%
Wise Account Wise Business
(vs. 24% FY22) (vs. 49% FY22)

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 Customers that use multiple features send more money

3x 2x
more
more
cross currency
transactions
volume

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Compared with ‘send’ only customers
And this creates
true virality led
growth.
66%
of customers join through
Word of Mouth

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 Growth FY19 to FY23

Personal Business
Active customer Active
growth is the main Customers 3x 4x
driver of volume
growth.
Volumes 3x 6x

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 More
FY24: What’s next? customers
New
Markets
New
Features
Better
Experience
More
benefits

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BUILDING A NETWORK FOR
THE WORLD’S MONEY

Harsh Sinha
Chief Technology Officer

03 22
Our global
infrastructure Price Speed Convenience
powers our
Low prices is key to why more 55% instant1 | >90% within 24 Fast and easy onboarding;
customers switch from their hours excellent customer service
existing provider Speed is a key reason we

proposition
retain customers >90% of customers have no need
to contact us

Wise Wise
accounts
Truly international account
Platform
Businesses built on Wise
Our infrastructure enables us to offer Bank and enterprise payment and
truly global accounts to people and international banking solutions
business, and to scale seamlessly on a increasingly being built on Wise
global basis
In future, could be the default for all
international money movement

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1. Instant defined as less than 20 seconds.
 An infrastructure that redefines what’s possible.

People onboarded <1hr

8 - 10x cheaper than banks Faster payments
SMBs onboarded <24hrs
Proof points

Payment speeds: end to end payments in <20 seconds

One single, global, real-time view of data

Full control of the
What’s so powerful end-to-end payment
network
Machine learning volume Machine learning financial
predictions crime prevention

What enables this Direct connections to local Global treasury

KYC and FinCrime engine
payment systems management system

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 Speed

Unmatched
payment speeds.

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 This will be very difficult to replicate

● Direct connections into 4

● >700 engineers
payment systems
● 250 releases per day
Technology Expansions ● 70+ banking partners
● One single global
● Mastercard/Visa card
treasury system
issuing partnerships

>1,300 customer service 69 licenses across 45

agents providing 24/7 Operations Regulatory countries
support

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 >60 >25m
More people have access to
Wise Platform Partners
Wise through their Bank*

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*Additional customers with access to Wise services via Wise Platform partners for FY23
Wise Platform: gaining traction globally, in multiple verticles.

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We’re building the replacement infrastructure for the world’s money.

Underlying We’re building the network for the world’s money

technology

International by default; enables the scaling of a global

proposition

Infrastructure has
not evolved in Allowing customers to make instant international
decades. payments at low cost

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 What makes Wise a generational company?

A massive We have We’re building the Wise is growing

problem exists evangelical network the fast and profitable
customers world’s money
needs

International
Large addressable Word of mouth Creating a
bank accounts do
market led growth valuable company
not really exist

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GROWING FAST, INVESTING,
AND PROFITABLE

Matthew Briers
Chief Financial Officer

04 31
 FY23 Financial Results.

10m c.£105bn £10.7bn £964m £239m

Active Customer
Volume Income Adj. EBITDA
customers balances

+34% +37% +57% +73% +97%

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Comparisons FY23 vs FY22
We’re building a business with world class fundamentals.

Wise Account
True customer led Hyper efficient
features powering
growth into a huge growth investment
growth and higher
opportunity economics
profitability

Growing fast… … investing for long term … and highly profitable

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Active customer growth drives volume growth.

Active customers (m) CAGR Volume (£bn) CAGR

(FY19-23) (FY19-23)

32%

44%
40%

56%

31%
36%

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 More customers join each year, and they stay with us.

Volume (£bn)

4.5m
customers joined in FY23
(+c.40% YoY)

>100%
volume retention
(average FY19-23)1

1
Volume retention measured as the volume moved in a fiscal year by existing customers who joined Wise before that year, compared to the 35
total volume moved in the preceding year.
 VPCs: stable long term but more volatile in the short term.

Reduced number of larger transfers eg

property purchases, investments
VPC (£ thousand)

VPCs very slightly

lower as we enter
FY24

VPC rose from exceptional USD strength

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Notes: 1Average central bank rate calculated as simple average of ECB, BoE, and FED rates only; given the significant proportion of customer balances held in the respective corresponding currencies.
 Revenue(£m)

Customer growth 51%

YoY1 FY23
YoY1

underpinned 51% 33%

YoY1 Other 109%

YoY revenue
growth. Cross 42%

Take rates:

Cross 0.70% 0.63% 0.65%

Other fees 0.07% 0.10% 0.16%

Notes: 1Comparison is FY23 to FY22 and FY22 to FY21.
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 Revenue by Segment and Region (£m)

FY23 YoY1 FY23 YoY¹

108% RoW
50% Business
60% APAC
Revenue growing
across customer 53% N. America

segments and 51% Personal

37% UK

geographies. 45% Europe

Notes: 1Comparison is FY23 to FY22.

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 Customer balances (£bn)

16%
35% HoH1
HoH1 FY23
YoY¹
Customer Business 54%

balances continue
to grow. Personal 61%

Notes: 1Comparison is Mar-23 to Sep-22 and Sep-22 to Mar-22. 39

 £m FY23 Q4 FY23

Interest income £140m £72m

Customer benefits paid &

We exit FY23 with interest expense
£(22)m £(16)m

a 2.8% gross yield; Interest income net of

£118m £56m
customer benefits2
we returned 0.6%
to customers.
Yield %

Gross interest yield1 1.6% 2.8%

Customer benefits paid &

(0.2%) (0.6%)
interest expense
Interest income net of
1.3% 2.2%
Notes: 1Gross yield is interest income as a percentage of average customer balances in the customer benefits2
period. 2 Interest income net of benefits on customer benefits is interest income less interest
expense and benefits relating to customer balances
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 Income¹ (£m)

73%

Income, which
YoY²
32% FY23
YoY²

includes interest,
YoY²

grew 73% YoY. Revenue 51%

Interest income net of

customer benefits³

Notes: 1Includes revenue and net interest income on customer balances.

²Comparison is FY23 to FY22 and FY22 to FY21. ³Interest income net of
customer benefits includes interest income on customer balances, interest
expense on customer balances and benefits paid relating to customer
balances.
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 Gross profit (£m)

Gross profit margin 62% 66% 66%

FY23
YoY¹

We generated COS² 73%

£638m of gross Gross

profit, +73% YoY. Profit
73%

Notes: 1Comparison is FY23 to FY22 and FY22 to FY21. ²This includes Cost of sales 42
and Net credit losses on financial assets.
 Use of FY23 Gross Profit

We invest a Product Servicing and

Development Corporate
significant share of (excl. vendors) &
Marketing1
Overhead
(incl. vendors)2

gross profit in our

growth.
Adjusted EBITDA

Notes: ¹Product Development and Marketing includes all employee related expenses
allocated to Product, Engineering, Design, Banking, Compliance and Treasury and all
expenses allocated to Marketing. ²Relates to all other administrative expenses above
EBITDA including Product Development vendor costs.
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 How we invest
Investment Impact

Marketing ● 1.5m new customers from marketing in FY23

c. £37m, +33% YoY ● High return investments: Payback < 12 months

Product Development ● 3m new customers from word of mouth in FY23

+33% headcount YoY1 ● New geographies and products launched
● Increasingly competitive infrastructure

Servicing ● Onboarded 4.5m customers, +40% YoY

+65% headcount YoY1 ● Improved service, helping reduce churn and drive
virality

Functions ● Enable us to scale globally

+38% headcount YoY1,2 ● Improved risk management and controls

Notes: ¹Average growth in FY23 as compared to FY22. 2Relates to core functions (i.e. Finance, Legal, People)
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and Marketing & Sales.
 Administrative expenses (£m)

54%
YoY1 FY23
YoY¹

We grew our team 47%

YoY1 Other admin
46%
expenses²
to invest in growth
and service Employee

customer demand. benefit

expenses
60%

Notes: 1Comparison is FY23 to FY22 and FY22 to FY21.

²Other admin expenses comprise Marketing, Technology and development,
Consultancy and outsourced services , Other administrative expenses,
Depreciation and amortisation, Capitalisation. 45
 Adjusted EBITDA (£m)

Margin 25.8% 21.8% 24.7%

1

97%
YoY²

12%
Adj. EBITDA margin YoY²

was higher due to

significant interest
income.

PBT £41.1m £43.9m £146.5m

Notes: 1Margin is adjusted EBITDA as a percentage of income. ²Comparison

is FY23 to FY22 and FY22 to FY21. 46
Stepping back: We’re building a business with world
class fundamentals

Wise Account
True customer led Hyper efficient
features powering
growth into a huge growth investment
growth and higher
opportunity economics
profitability

● Highly viral customers ● 66% gross margin ● >50% new customers on

● >100% retention ● .. funds high ROI Product Wise Account
Development investment ● Customers more engaged
● .. and best in class ● … driving up margins
Marketing payback through interest earned

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Looking ahead: Time to double down
Product and infrastructure Continue to invest in Product Development teams and
Marketing (not funded by interest)

Sustainably disrupt cross border Continue to run our cross border volume at a ~20%
pricing margin, dropping prices where we can to ‘extend the
moat’ (not funded by interest)

Use interest income to power Use of interest income:

growth with a better Wise - Use up to 80% of interest to strengthen the Wise
Account proposition Account customer proposition
- Remaining 20% of gross interest flows to EBITDA

We’re building a business that’s not Interest makes the Wise Account proposition
dependent on interest income stronger, and leads to higher profitability
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So how will we utilise this interest income?

Flows to EBITDA resulting in higher margins

20%

80% Use interest income to power a better Wise Account proposition

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 So how will we utilise this interest income?

Flows to EBITDA resulting in higher margins

20%

80%

The first ~1ppt yield covers account feature costs and helps us avoid/reduce
~1ppt
any account fees (e.g., subscription, domestic payout fees)

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 So how will we utilise this interest income?

20% Flows to EBITDA resulting in higher margins

Provide Wise Account incentives:

● Reward customers on their balances: live in EU, and US. Will extend to other
countries but will take time
80% ● Provide account incentives: cashback on cards, discretionary fee refunds,
(where we cannot pay interest)
● We won’t use to drop cross prices or fund general opex (avoid creating
dependency)

~1ppt The first ~1ppt yield covers account feature costs and helps us avoid/reduce
any account fees (e.g., subscription, domestic payout fees)

51
 So how will we utilise this interest income?

20% Flows to EBITDA resulting in higher margins

Flows to EBITDA (where we cannot return this as interest per below)

Provide Wise Account incentives:

● Reward customers on their balances: live in EU, and US. Will extend to other
countries but will take time
80% ● Provide account incentives: cashback on cards, discretionary fee refunds,
(where we cannot pay interest)
● We won’t use to drop cross prices or fund general opex (avoid creating
dependency)

~1ppt The first ~1ppt yield covers account feature costs and helps us avoid/reduce
any account fees (e.g., subscription, domestic payout fees)

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 H2 FY23 Adjusted EBITDA margin
This interest
dynamic will drive As reported 27%

higher adjusted
EBITDA margins. … with 1ppt interest 20%
yield

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Continuing growth and profitability in FY24

28-33% YoY
Income growth in FY24

Considerations
Key Driver: ● VPCs very slightly lower as we enter
FY24; soft/uncertain macro outlook
Strong active customer ● Interest: Increasing rates, more
growth returned to customers; EBITDA remains
elevated

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Lapping material trends from FY23 as we move through FY24.

VPC (£ thousand) Cross Take Rate Gross and net interest income
(% of Volume) (£m)

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Medium-term guidance reiterated

Income growth >20% (CAGR)

Supported by active customer momentum into a huge market opportunity

Adj. EBITDA margin at or above 20%

Sustaining our levels of investment in the long-term growth
Maintaining discipline on price for competitive advantage

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We’re building a business with world class fundamentals.

Wise Account
True customer led Hyper efficient
features powering
growth into a huge growth investment
growth and higher
opportunity economics
profitability

Growing fast… … investing for long-term … and highly profitable

57
Kristo Käärmann
Co-founder and CEO

58
 More
FY24: What’s next? customers
New
Markets
New
Features
Better
Experience
More
benefits

59
 What makes Wise a generational company?

A massive We have We’re building the Wise is growing

problem exists evangelical network the fast and profitable
customers world’s money
needs

International
Large addressable Word of mouth Creating a
bank accounts do
market led growth valuable company
not really exist

60
Sustainable and Profitable
- There are lots of things that can drive
value, but right now customer growth
is what we’re focused on as the driver
- Resilient and highly quality income
- Super efficient allocation of capital
- Rule of 60 for now and medium term
confidence driven by customer
growth

Q&A

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