Acquiring

Strategy Day

Making money flow seamlessly

and intelligently

tinkoff.ru

Our Agenda

1. Acquiring 101

2. Tinkoff Acquiring business

3. Our payment solutions

4. Our customer portfolio

5. Our monetisation

6. Our growth potential and targets

tinkoff.ru

tinkoff.ru

1.Acquiring 101. Focus on online

tinkoff.ru

AcquirerBank

Payment systems

Issuer Bank

Payment facilitators/ service providers

4

How do online payments occur?

Consumers

Merchants

Merchants

Processing Payment system

IssuingGateway

Other acquirer

Banks

Processing

Payment systems

Payment system

Issuing

Other issuer

banks

Gateway

Tinkoff integrated acquiring platform

5

Who are the main players in the online payments market?

Other players

Consumers

Merchants

Merchants

tinkoff.ru

2.Tinkoff Acquiring business

tinkoff.ru

Acquiring of payments

Online acquiring

Universal payment gateways

Offline POS acquiring

In-app payments and invoicing

Recurring payments

One-click and link payments

QR payments

Installment plans

Buy Now Pay Later

Marketplace solutions

Transfers solutions

C2B (card2account) transfers

Recurring transfers

B2C (account2card) payouts

Cross-border transfers

Overdrafts

API-enabled payouts

SafeDeal transfer schemes

Value-added services

Merchant dashboards

Real-time reporting and analytics

Fiscalization (online cashier) services

Verification and anti-fraud services

Payment gateway integration

Acquiring

Tinkoff Acquiring business Making money flow seamlessly and intelligently

7

Global peers

4

2015

Internet acquiring

(payment widget,

numerous internet-

shop CMS, API)

Card to card

transfers

6

2016

Payments in the

mobile app (SDK)

Recurring

payments

Sitescanner

12

2017

Payments through IVR

Offline POS acquiring

Shareable links

Apple / Google Pay

Controlling stake

in Cloudpayments

23

2018

E-invoicing within

Tinkoff ecosystem

Fiscalization (online

cashier) services

Funding from other

banks’ cards (AFT)

Business payouts

to customer cards

Masterpass

39

52

2019

Marketplace

acquiring solutions

C2B QR Payments

(FPS)

Payments through

escrow accounts

Recurring transfers

Account verification

services

94

2020

1H’21

One-click payments

3DS 2.0

Mastercard Digital

Enablement

Service for Merchants

Payment form

customization service

Buy Now Pay Later

B2C Payouts (FPS)

Tinkoff installments

8

Total monthly acquiring turnover (TPV)*, Rub bn

Tinkoff Acquiring: adding new solutions every year

Note: *Turnover = Total Payment Volume, includes online and offline

Tinkoff Kassa (Checkout)

Our clients:

Cloudpayments

9

Integrated payment platform with all popular payment methods

Focus on full-fledged banking relationships

Value-added merchant services

Online acquiring PSP focusing on long-tail merchants

CloudKassir — online fiscalization

СloudTips — online restaurant tips

10k+ merchants across Russia and CIS

Independent management and sales team

Tinkoff Acquiring at a glance

Top 3

Russia online market share

Top 16online acquirer

in Europe*

>96% conversion rate

>100k

activemerchants

<0.05%fraud ratio

2 mndaily

transactions

₽11 bngross revenue

in 2020

4%of the group’s PBT in 2020

₽560 bn1H21 TPV, +124% yoy

10Note: Includes online and offline acquiring.

*Nilson report, by number of web transactions

We are a sizable online payments provider by European standards

11

European online acquiring transactions, mn, 2020

116149228490609

3 0553 654

858

Note: Select largest European acquirers, online acquiring transactions (2020), Nilson report

tinkoff.ru

3. Our payment solutions

tinkoff.ru

How we are helping merchants with our payment solutions

Market / merchant issues

Complex onboarding with many intermediaries

Merchant friendly interface and seamless onboarding

Difficulty syncing banking and payment services

Comprehensive Tinkoff ecosystem

How Tinkoff addresses them

13

Lack of trust in online payments Consumer facing trusted brand and strong UX/UI

Dealing with cash Comprehensive digital payments solution

High reject / fraud ratioHigh conversion rates, fraud-proof solution based on in-house developed tech

Lack of data to inform business decisions Real-time analytics

Long wait times to settlement Same day payout of merchant revenues

Quick and painless onboarding and analytics management

Up to 1 day integration and onboarding

with 24/7 support

User friendly merchant interface with single

sign-on across Tinkoff ecosystem

Easy activation of payment methods in

merchants account, processing of refunds

and chargebacks

Full operation and fraud control

Smart real-time payments analytics

Checkout.com study: 60% of merchants

surveyed do not feel that their payments

data are informing their business strategy

nor their innovation

Online Shop

YEAR MONTH DAY CHOOSE A PERIOD

Yesterday 1.10—08.10

Mobile application

60%

14

Payment volume Number of transactions Average ticket Payment conversion

RETURNS

Today

1 / 20 302.17 ₽ 3 / 48 206.22 ₽ 18 / 88 423.50 ₽

Best-in-class Fraud monitoring

15

We have consistently low fraud ratio..Tinkoff 2.6bp vs region 7.4bp (MasterCard data)

…while maintaining very high transaction approval rate

Antifraud approval rate of 99.6%

Automated customer verification system

Cross-channel monitoring

Our own fraud monitoring solution – SiteScanner70 000 website scans per month

Analysis of mobile apps, social media and reviews

Officially registered as MC’s Merchant Monitoring Service Provider

All payment methods in one

Complex payment platform with all popular and new innovative payment methods

16

Visa, MasterCard and MIR Payment System

Apple Pay and Google Pay

QR-codes, through Faster Payments System

E-invoicing directly from Tinkoff account

Recurring and subscription payments

Online installments / BNPL

Solutions for marketplaces to distribute payments to suppliers

The service of processing payment transactions carried

out on merchant’s website in favor of third parties without

entering into direct contracts with them

After paying for the order on merchant’s website, the money is debited from the payer's card

in one amount, and the bank distributes it among all the suppliers involved. It is also possible

to transfer merchant’s fee share of the purchase

Client comes on your website

Chooses items to buy

Pays

Service / goods provider

1

Service / goods provider

2

3Service / goods provider

Marketplace / Platform

17

Transparent settlement process

The buyer places an order on the classified

Seller receives the money only when the buyer has

confirmed the goods are received as agreed

Transactions are processed through the bank's transit account

The platform itself does not need to open

an account to use the service

Long-term freezing of money on the buyer's card

We can conduct transactions with a difference

between order date and confirmation date

of up to 60 days

Solutions for classifieds: Safe deal through escrow account

Increasing trust in online transactions

on classifieds where both parties are

individuals

18

Easy set-up of recurring payments

Account settlement lag – one hour

Fast enrolment with any bank

Popular subscription service for charities / taxes / penalties

Option to set up schedule of payments

Subscription or recurrent payment model for customersAllows merchants to increase stickiness of their clients

19

Lighthouse CharityNCO (MCC 8398)

Cashback

Bonuses

DocsPurchase

DisputeSplit

13 February 2021

We are addressing long-tail merchant needs through transfer and payout solutions

20

Return to shop

Card

Number

Owner

E-mail

You agree to share you e-mail address

Link

Shop Teleport Taxi

Microfinance / loan payments

Taxi drivers payouts

Agents / self-employed payments

Tips

Classifieds escrow payments

Insurance payouts

Refunds / loyalty payments

Transfers use cases

Instant

transfers and

24/7 support

Transfers to and

from any bank

cards

Quick merchant

onboarding

and integration

Link a card

Tinkoff doesn't share your data with anyone

Increasing conversion and average check: BNPL (buy now pay later)/ “Dolyame”

21

The only non-credit BNPL service in Russia

Separate Dolyame.ru brand and mobile app for promoting merchants

Purchase is split into 4 interest-free payments every 2 weeks

Good for low ticket high intensity commerce: clothes, accessories, cosmetics

Average check ~Rub 8,000 (50% higher average check than for other payment methods)

Customer purchase journey takes less than a minute

>90% customers are approved to shop

More on this in future Tinkoff presentations

Order N2354235

3 installments left for 9 210

Pay immediately 9 210

3 payments left

Card to be charged

Paid 28 September

To be charged 12 October

To be charged 26 October

To be charged 9 November

Pay now

Koshelek Pay is a service for

offline contactless payments

via smartphones using:

1

Select an account in Koshelek for quick payment

2

Scan your loyalty card at checkout

3

Confirm your purchase with single tap

Tinkoff Platinum credit account

Tinkoff Black account

Selected account will be used by default. There is no additional fees. You can always select another account in the control panel.

Which account do you want to use to pay for purchases?

Special offers

Card credentials

Card is activeYou can earn and spend loyalty points

Payment method

Purchase

Subtotal

Total

Pay

Faster Payment System

St Petersburg, Petersburg avenue

22

Digitized cards

Faster Payment System

BNPL (“Dolyame”)

Koshelek Pay

CONTINUE

Balance

LOYALTY CARD

Pay

Offline payment solutions

POS acquiring terminal

All popular payment methods (Apple

Pay, Google Pay, contactless cards,

Alipay, Faster Payment System)

Free terminal, no subscription fees

Money credited the next day, even

during weekends

All transaction data available on the

merchants web portal

Online cash register

Cash register is integrated

with POS terminal

Free registration with tax authorities

and online fiscal data transfer set up

SoftPOS terminal on any Android NFC device

Available for any smartphone

with NFC based on Android

7.0+

Acceptance of contactless bank

cards, Apple Pay, Google Pay,

Faster Payment System

New service Certified according to the

requirements of international

payment systems

Partial and full refunds, access

rights management

23

tinkoff.ru

4. Our customer portfolio

tinkoff.ru

Our online acquiring customer base keeps growing

Note: Payments include card purchases of goods and services. Transfers include card to account and account to card transactions 25

Active online merchants, EOP, 000s

Online acquiring TPV

2

2015

10

2016

9

2017

13

2018

21

2019

32

2020

46

2021

25

2015

69

366

2016

142

17

125

2017

266

67

199

2018

402

111

292

2019

514

174

339

2020

474

167

307

1H21

1H21

2021

Payments, Rub bn

Transfers, Rub bn

We service a diversified pool of e-commerce merchants

E-commerce payments categories

Merchants by monthly turnover

37%

24%13%

27%

>1000m

250-1000m

50-250m

<50m

0% 5% 10% 15% 20% 25% 30%

Goods, Electronics and Non-food Retail 24%

Education 14%

Groceries 11%

Travel 9%

Airlines 6%

Restaurants & Fastfood 6%

Utilities 5%

Fashion & Beauty 4%

Auto 4%

Entertainment 4%

Advertising 3%

Charity 2%

Insurance 1%

Medical Services 1%

Other 5%

26

We also rapidly expand offline acquiring base

27

Active offline merchants, EOP, 000s

Offline acquiring TPV, Rub bn

14

2018

61

2019

109

2020

90

2021

21

2018

37

2019

44

2020

55

2021

1H21

1H21

tinkoff.ru

5. Our monetisation

tinkoff.ru

Acquirer fee

Tinkoff Acquiring

Acquirer bank

Service fee

PF/PSP*

Payment system fee

MC/Visa/Mir

Interchange fee

Issuer bank

Gross acquiring fee

We take a slice of every payment or transaction

29Note: *Payment facilitators / Payment service providers

Monetization is mostly reliant on growing volumes

30

Gross acquiring revenue, Rub bn

Acquiring TPV Gross acquiring fee

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

1Q21

2Q21

3Q20

4Q20

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

1Q21

3Q20

4Q20

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

1Q21

3Q20

4Q20

0

50

100

150

200

250

300

350

0.0% 0

1

2

3

4

5

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

0.2%

0.4%

0.6%

0.8%

Offline acquiring TPV, Rub bn

Online acquiring TPV, Rub bn

Note: *Gross acquiring fee include all fees paid by the merchant

+ =

Despite stable gross commissions, unit economics are improving

31

Net revenue per merchant (vs 1Q20 base)

Net revenue margin (as % of TPV)

1Q200%

20%

40%

80%

60%

100%

100%104%

115% 112%122%

0.51%

2019

0.70%

1Q20

0.76%

2Q20

0.68%

3Q20

0.64%

4Q20

0.64%

1Q21

98%120%

140%

2Q20 1Q21 2Q213Q20 4Q20

Marketaverage

This all leads to significant revenue and profitability growth

Note: Gross revenue as per IFRS segmental disclosure

Acquiring gross revenue, Rub bn

Acquiring net revenue, Rub bn

Acquiring PBT, Rub bn

2019

8.5

11.2

2020

4.1

1Q21

2.3

1Q20

+32%

+73%

2019

2.4

4.3

2020

1.5

1Q21

0.9

1Q20

+80%

+71%

2019

1.3

2.3

2020

0.7

1Q21

0.4

1Q20

+79%

+69%

32

2Q211Q21

Newer cohorts show strong propensity for monetization

33

Online acquiring turnover by merchant cohorts

Before 2018

2019

2018

2020

2021

50

100

150

200

250

300

0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

tinkoff.ru

5. Our growth potential and targets

tinkoff.ru

We are steadily growing our market share…

Source: *Tinkoff estimate based on Data Insight, CBR, **Nilson report

We are gradually increasing our online market share* …

2020

Tinkoff share in e-commerce acquiring

1H21

12%15%

…but are still small in total retail payments

Russia card purchases turnover

0 0.0%

1.0%

2.0%

0.5%

1.5%

2.5%

1

2

3

4

5

6

7

8

9

10

Rub

Trl

n

Tinloff share (rhs)

1Q211Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Top 3 banks in Russia by online acquiring TPV**

Sberbank

2020 TPV, $ bn

19.9

7.9

7.2

VTB

35

…tapping into an expanding e-commerce market…E-commerce penetration in Russia is significantly lower than global average

Russia still has high share of cash paymentsin total retail relative to other markets

Source: Euromonitor, Goldman Sachs Global Investment Research, as of 2020

Poland

South Kore

aChina UK

USA

Indonesia

World

Germany

Turkey

Russia

Japan

France

Mexico

India

South Afri

ca

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

36%

27%

24%

20% 20%

16%14% 14%

13%11% 10% 10%

8%7%

3%

36

India

South Africa

Indonesia

Mexico

Japan

Italy

Russia 38%

Poland

Saudi Arabia

Brazil

Portugal

Australia

Singapore

Chile

Turkey

France

Germany

USA

China

Switzerland

UK

Sweden

South Korea

Finland

Canada

…with sizeable potential for further gains

37

Note: TA

M is b

ased on net acq

uiring revenues. It includ

es online and offline.

Tinkoff net revenues, 2020, Rub bn

4

200

2%

Net acquiring revenue TAM (purchases and transfers),

2023, Rub bn

incoming requests yoy

x6press publications

300+

audience coverage

10 mnTinkoff Kassa search requests yoy

x4

41%Organic traffic

43%Online paid promo

16%Sales managers

Customer acquisition — we know how to grow

Tinkoff Kassa leads origination

Fast new channels tests on small

budgets (test & learn)

Driving higher penetration into

large merchants

Wide performance marketing mix

Full in-house marketing team

Strong aim at merchants education

(events, webinars, special projects,

own media ”Business secrets”)

38

Our growth ambitions

39

> ₽2T acquiring TPV by end 2023

>50% TPV 2020/23 CAGR

Broadly stable net revenue margin

Acquiring TPV (online and offline), Rub bn

69

2016

25

2015

142

2017

280

2018

464

2019

623

2020

>2 000

202320222021

Our growth ambitions

40

> ₽2T acquiring TPV by end 2023

>50% TPV 2020/23 CAGR

Broadly stable net revenue margin

Acquiring TPV (online and offline), Rub bn

69

2016

25

2015

142

2017

280

2018

464

2019

623

2020

>2 000

202320222021

Exploring international opportunities

tinkoff.ru

6. Appendix

tinkoff.ru

Payments is an important tool to monetize merchants

Payments

Online acquiring + BNPL

Offline acquiring

Online cash register

QR payments

Invoicing

Customer reach and loyalty

Tinkoff Target offers and cashback

Koshelek loyalty card app

Tinkoff Lifestyle super app

Partner solutions

Marketing tools

ERP and accounting

Cloud services

Lending for customers

Credit cards

POS lending

Installments

Lending for merchants

Working capital loans

Overdrafts

Secured loans

Proprietary software

Website builder

Cloud call center

Integrated accounting

Merchant

42

Personal managers support 24/7 Professional advice on acquiring > 50 employees

Personalization and flexibility

Finding and developing extraordinary solutions

for merchants’ needs

Own technical Infrastructure

End-to-end analytics, products, developers team

Merchants’ education

Learning webinars

Education at conferences

“Business secrets” media

Providing markets’ analytics

Superior customer service is a key competitive advantage

300+ dedicated employees

43

in ₽ bn or otherwise stated 1Q20

2.3

-1.9

-1.5

-0.4

-0.1

0.4

128

61.7

41%

1.8%

19%

49%

2Q20

2.3

-1.8

-1.4

-0.4

-0.1

0.5

128

57.7

39%

1.8%

21%

49%

3Q20

2.8

-2.2

-1.7

-0.4

-0.1

0.6

160

68.9

38%

1.8%

21%

45%

4Q20

3.7

-3.0

-2.4

-0.5

-0.1

0.8

212

75.9

37%

1.8%

20%

43%

1Q21

4.1

-3.3

-2.6

-0.7

-0.1

0.7

235

92.0

45%

1.7%

18%

50%

1Q21 / 1Q20

73%

74%

75%

86%

12%

69%

84%

49%

3.5 р.р.

-0.1 р.р.

-0.5 р.р.

0.8 р.р.

2019

8.5

-7.2

-6.1

-1.0

-0.1

1.3

464

58.4

41%

1.8%

15%

46%

2020

11.2

-8.9

-7.0

-1.7

-0.3

2.3

623

75.9

39%

1.8%

20%

46%

2020/2019

32%

24%

14%

71%

x2.8

79%

34%

30%

-2.1 р.р.

0 р.р.

5.3 р.р.

-0.5 р.р.

Gross revenue

Expense

Fee and commission expense

Administrative and other operating expenses

Customer acquisition expense

Segment result

TPV

Active merchants (EoP ‘000)

Cost/Income ratio

Gross acquiring margin (Gross revenue / TPV)

PBT margin (Segment result / Revenue)

Cost/Income ratio (incl. acquisition)

Summary financials

44

Note: IFRS segmental disclosure. Due to rounding,

some individual fugures may not add up to their totals.