Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF A FOREIGN ISSUER

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

OF THE SECURITIES EXCHANGE ACT OF 1934

For August 16, 2023

Commission File Number 001-35893

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 x                      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 x

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

Exhibits

99.1

“QIWI Announces Second Quarter 2023 Financial Results” press release dated August 16, 2023

99.2

Interim condensed consolidated financial statements (unaudited) of QIWI plc for the six months ended June 30, 2023

99.3

Acknowledgement Letter of Independent Registered Public Accounting Firm

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: August 16, 2023	By:	/s/ Alexey Mashchenkov
		Chief Financial Officer

Exhibit 99.1

QIWI Announces Second Quarter 2023 Financial Results

NICOSIA, CYPRUS – August 16, 2023 – QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), an innovative provider of cutting-edge payment and financial services, today announced its financial results for the second quarter ended June 30, 2023.

2Q 2023 key operating and financial highlights^1
2

		2Q 2022		2Q 2023				1HY 2022		1HY 2023				2Q 2023		1HY 2023
		RUB million		RUB million		YoY		RUB million		RUB million		YoY		USD million⁽¹⁾		USD million⁽¹⁾
	Revenue	14,015		18,037		28.7	%	23,732		35,909		51.3	%	207.2		412.6
	Total Net Revenue	10,208		9,194		(9.9	)%	16,513		17,746		7.5	%	105.6		203.9
	Adjusted EBITDA	6,972		5,057		(27.5	)%	10,659		9,536		(10.5	)%	58.1		109.6
Consolidated Group results	Adjusted EBITDA margin	68.3	%	55.0	%	(13.3	)p.p.	64.5	%	53.7	%	(10.8	)p.p.	55.0	%	53.7	%
	Profit for the period	2,810		4,817		71.4	%	5,067		9,316		83.9	%	55.3		107.0
	Adjusted Net profit	2,964		5,234		76.6	%	5,290		9,414		78.0	%	60.0		108.2
	Adjusted Net profit margin	29.0	%	56.9	%	27.9	p.p.	32.0	%	53.0	%	21.0	p.p.	56.8	%	53.0	%
	Net Revenue	9,318		7,215		(22.6	)%	14,967		14,159		(5.4	)%	82.9		162.7
	Payment Net Revenue	7,579		5,042		(33.5	)%	11,699		10,128		(13.4	)%	57.9		116.4
	Payment Volume, billion	500		505		1.0	%	856		974		13.7	%	5.8		11.2
Payment Services (PS)	Payment Net Revenue Yield	1.52	%	1.00	%	(0.5	)p.p.	1.37	%	1.04	%	(0.3	)p.p.	1.00	%	1.04	%
	Other Net Revenue	1,739		2,173		25.0	%	3,268		4,031		23.4	%	25.0		46.3
	Adjusted Net profit	5,572		2,926		(47.5	)%	8,601		6,462		(24.9	)%	33.6		74.2
	Adjusted Net profit margin	59.8	%	40.6	%	(19.2	)p.p.	57.5	%	45.6	%	(11.8	)p.p.	40.6	%	45.6	%
	Net Revenue	128		930		627.6	%	285		1,671		487.1	%	10.7		19.2
Digital Marketing (DM)	Adjusted Net (loss) / profit	(56	)	213		(480.4	)%	(26	)	329		(1365.4	)%	2.4		3.8
	Adjusted Net profit margin	(43.8	)%	22.9	%	66.7	p.p.	(9.1	)%	19.7	%	28.8	p.p.	22.9	%	19.7	%
Corporate and Other (CO)	Net Revenue	762		1,049		37.7	%	1,261		1,916		51.9	%	12.1		22.0
	Adjusted Net (loss) / profit	(2,552	)	2,095		(182.1	)%	(3,285	)	2,623		(179.8	)%	24.1		30.1

(1)

Throughout this release dollar translation is calculated using a rouble to U.S. dollar exchange rate of RUB 87.0341 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2023.

(2)

Throughout this release, following the introduction of new Digital Marketing segment, certain amounts related to Flocktory have been reclassified from Corporate and Other to Digital Marketing segment to conform to the current period presentation.

Key events during and after the reported period

●

On June 6, 2023, NASDAQ Hearing Panel granted the request of the Company to continue its listing on Nasdaq, subject to certain conditions³.

●

QIWI announced results of 2023 Annual General Meeting held on June 5, 2023⁴.

●

QIWI completed consolidation of Russian assets under the single entity JSC QIWI⁵.

●

QIWI Bank operations were temporarily and partially restricted starting from July 26, 2023⁶.

●

Credit rating agency lowered credit ratings of QIWI PLC and QIWI Bank⁷.

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

² Throughout this release calculations of totals, subtotals and/or percentage change may have small variations due to rounding of decimals.

³ https://investor.qiwi.com/news-and-events/press-releases/qiwi-to-continue-its-listing-on-the-nasdaq-uponsuccessful- restructuring/

⁴ https://investor.qiwi.com/news-and-events/press-releases/4108568/

⁵ https://investor.qiwi.com/news-and-events/press-releases/4108570/

⁶ https://investor.qiwi.com/news-and-events/press-releases/4108571/

⁷ https://investor.qiwi.com/news-and-events/press-releases/4108572/

2Q 2023 results

Net Revenue breakdown by segments

	2Q 2022		2Q 2023					1HY 2022		1HY 2023					2Q 2023		1HY 2023
	RUB million		RUB million		YoY			RUB million		RUB million		YoY			USD million		USD million
Total Net Revenue		10,208		9,194		(9.9	)%		16,513		17,746		7.5	%		105.6		203.9
Payment Services (PS)		9,318		7,215		(22.6	)%		14,967		14,159		(5.4	)%		82.9		162.7
PS Payment		7,579		5,042		(33.5	)%		11,699		10,128		(13.4	)%		57.9		116.4
PS Other		1,739		2,173		25.0	%		3,268		4,031		23.4	%		25.0		46.3
Digital Marketing (DM)		128		930		627.6	%		285		1,671		487.1	%		10.7		19.2
Corporate and Other (CO)		762		1,049		37.7	%		1,261		1,916		51.9	%		12.1		22.0

Total Net Revenue decreased by 9.9% YoY to RUB 9,194 million ($105.6 million) driven by high base and adverse mix effects in operations of Payment Services (PS) segment partially offset by Corporate and Other (CO) segment results, as well as the strong performance of Flocktory and the consolidated results of the RealWeb business acquired by the Company in December 2022⁸ and accounted for in the Digital Marketing (DM) segment.

Payment Services

PS Net Revenue decreased by 22.6% YoY to RUB 7,215 million ($82.9 million).

PS Payment Net Revenue was 33.5% lower YoY and amounted to RUB 5,042 million ($57.9 million) driven by PS Payment Net Revenue Yield decrease from 1.52% to 1.00% and generally stable PS Payment Volume despite high base of last year.

PS Payment Net Revenue Yield was 52 bps lower YoY due to the adverse mix effect resulting from lower share of operations with higher margins, such as currency conversion.

PS Payment Volume was 1% higher YoY and reached RUB 504.6 billion driven by the onboarding of new merchants and aggregators and the growing payment volume from our product offering for digital entertainment and self-employed.

PS Other Net Revenue primarily comprises interest income, revenue from fees for inactive accounts and unclaimed payments, cash and settlement services and related conversion income, income from intercompany and third-party funding, and advertising fees. In 2Q 2023 PS Other Net Revenue increased by 25.0% YoY to RUB 2,173 million ($25.0 million) as a result of higher net revenue derived from cash and settlement services partially offset by lower interest income due to lower interest rates.

Digital Marketing (DM)

DM Net Revenue increased by 627.6% YoY to RUB 930 million ($10.7 million) driven by the RealWeb acquisition in December 2022 and the increase of the number of Flocktory clients and traffic-providers.

Corporate and Other (CO)

	2Q 2022		2Q 2023					1HY 2022		1HY 2023					2Q 2023		1HY 2023
	RUB million		RUB million		YoY			RUB million		RUB million		YoY			USD million		USD million
CO Net Revenue		762		1,049		37.7	%		1,261		1,916		51.9	%		12.1		22.0
ROWI		709		658		(7.2	)%		1,078		1,253		16.2	%		7.6		14.4
Tochka		-		-					106		-		(100.0	)%		-		-
Corporate and Other projects		54		392		630.1	%		77		663		755.8	%		4.5		7.6

CO Net Revenue increased by 37.7% YoY to RUB 1,049 million ($12.1 million) mainly as a result of higher interest income accounted for in Corporate and Other projects.

⁸ https://investor.qiwi.com/news-and-events/press-releases/4108557/

●

ROWI Net Revenue decreased by 7.2% YoY to RUB 658 million ($7.6 million) mainly due to a decline of net portfolio yield compared to 2Q2022:

As of June 30, 2023, the bank guarantees portfolio reached RUB 80.0 billion - an increase of 28.0% YoY.

As of June 30, 2023, the factoring portfolio was RUB 12.1 billion or 15.2% higher YoY.

As of June 30, 2023, the portfolio of online loans for government contracts execution doubled compared to previous year and reached RUB 4.4 billion.

In 2Q 2023, the share of ROWI Net Revenue in Total Net Revenue was 7.2% growing by 0.2 ppt YoY.

●

Corporate and Other projects Net Revenue in 2Q 2023 amounted to RUB 392 million ($4.5 million) compared to RUB 54 million in 2Q 2022 driven by interest income from (i) investments into debt securities (high-quality corporate and government bonds) and (ii) loans provided.

Operating expenses and other non-operating income and expenses

	2Q 2022		2Q 2023				1HY 2022		1HY 2023				2Q 2023		1HY 2023
	RUB million		RUB million		YoY		RUB million		RUB million		YoY		USD million		USD million
Operating expenses	(3,618	)	(4,452	)	23.1	%	(6,513	)	(8,834	)	35.6	%	(51.2	)	(101.5	)
% of Net Revenue	(35.4	)%	(48.4	)%	(13.0	)p.p.	(39.4	)%	(49.8	)%	(10.3	)p.p.
Selling, general and administrative expenses	(773	)	(1,184	)	53.2	%	(1,544	)	(2,143	)	38.8	%	(13.6	)	(24.6	)
% of Net Revenue	(7.6	)%	(12.9	)%	(5.3	)p.p.	(9.4	)%	(12.1	)%	(2.7	)p.p.
Personnel expenses	(2,002	)	(3,034	)	51.5	%	(3,675	)	(5,785	)	57.4	%	(34.9	)	(66.5	)
% of Net Revenue	(19.6	)%	(33.0	)%	(13.4	)p.p.	(22.3	)%	(32.6	)%	(10.3	)p.p.
Depreciation, amortization & impairment	(323	)	(315	)	(2.5	)%	(600	)	(624	)	4.0	%	(3.6	)	(7.2	)
% of Net Revenue	(3.2	)%	(3.4	)%	(0.3	)p.p.	(3.6	)%	(3.5	)%	0.1	p.p.
Credit loss (expense) / gain	(520	)	81		(115.6	)%	(694	)	(282	)	(59.4	)%	0.9		(3.2	)
% of Net Revenue	(5.1	)%	0.9	%	6.0	p.p.	(4.2	)%	(1.6	)%	2.6	p.p.
Other non-operating income and expenses	(2,347	)	1,029		(143.8	)%	(2,699	)	2,249		(183.3	)%	11.8		21.0
% of Net Revenue	(23.0	)%	11.2	%	34.2	p.p.	(16.3	)%	12.7	%	29.0	p.p.
Share of loss of an associate	-		(5	)			-		(44	)			(0.1	)	(0.5	)
% of Net Revenue	0.0	%	(0.1	)%	(0.1	)p.p.	0.0	%	(0.2	)%	(0.2	)p.p.
Foreign exchange gain/(loss), net	(2,369	)	1,296		(154.7	)%	(2,810	)	2,115		(175.3	)%	14.9		24.3
% of Net Revenue	(23.2	)%	14.1	%	37.3	p.p.	(17.0	)%	11.9	%	28.9	p.p.
Other income and expenses, net	22		(262	)	(1290.9	)%	111		(246	)	(321.6	)%	(3.0	)	(2.8	)
% of Net Revenue	0.2	%	(2.8	)%	(3.1	)p.p.	0.7	%	(1.4	)%	(2.1	)p.p.
Gain from disposal of subsidiary	-		-				-		424				-		4.9
% of Net Revenue	0.0	%	0.0	%	0.0	p.p.	0.0	%	2.4	%	2.4	p.p.

Operating expenses increased by 23.1% YoY to RUB 4,452 million ($51.2 million) mainly driven by the increase of expenses to secure growth of the business and the acquisition of RealWeb in December 2022 partially offset by credit loss reversal. Operating expenses as a percentage of Total Net Revenue deteriorated by 13.0 ppts to 48.4% mainly due to the high base of last year for the PS segment and the consolidation of the new RealWeb business (with historically higher operating expenses to Net Revenue ratio), partially offset by a positive credit loss dynamic.

Selling, general and administrative expenses increased by 53.2% YoY to RUB 1,184 million ($13.6 million) and as a percentage of Total Net Revenue by 5.3 ppt YoY to 12.9% mainly driven by the high base effect of last year and the acquisition of RealWeb.

Personnel expenses surged by 51.5% YoY to RUB 3,034 million ($34.9 million) driven by the hiring of new staff for development of new products and strong financial performance resulting in higher bonuses to employees in PS segment as well as the consolidation of the new RealWeb business. Personnel expenses as a percentage of Total Net Revenue increased by 13.4 ppts to 33.0% mainly driven by the high base effect of last year and acquisition of RealWeb.

Depreciation, amortization and impairment stood at RUB 315 million ($3.6 million) or 3.4% as percent of Total Net Revenue – 0.3 ppt higher YoY due to the high base effect of last year.

Credit loss reversal amounted to RUB 81 million ($0.9 million) compared to a credit loss of RUB 520 million in 2Q 2022 due to release of allowance for ECL on restricted cash accounts partially offset by an increase of provisions due to the growth of bank guarantees portfolio.

Other non-operating income increased to RUB 1,029 million ($11.8 million) compared to RUB 2,347 million of loss last year primarily due to (i) the foreign exchange gain resulting from the depreciation of the Russian ruble vs. USD, AED and Euro in 2Q 2023, and (ii) a decrease in fair value of option to invest in an associate.

Income tax expense

Income tax expense decreased by 33.4% YoY to RUB 954 million ($11.0 million) as a substantial part of the profit relates to exchange gain for 2Q 2023 which is tax neutral within the Group perimeter. As a result, the effective tax rate decreased from 33.8% in 2Q 2022 to 16.5% in 2Q 2023.

Profitability results

	2Q 2022			2Q 2023						1HY 2022			1HY 2023						2Q 2023			1HY 2023
	RUB million			RUB million			YoY			RUB million			RUB million			YoY			USD million			USD million
Adjusted EBITDA		6,972			5,057			(27.5	)%		10,659			9,536			(10.5	)%		58.1			109.6
Adjusted EBITDA margin, %		68.3	%		55.0	%		(13.3	)p.p.		64.5	%		53.7	%		(10.8	)p.p.		55.0	%		53.7	%
Adjusted Net Profit		2,964			5,234			76.6	%		5,290			9,414			78.0	%		60.0			108.2
Adjusted Net Profit margin, %		29.0	%		56.9	%		27.9	p.p.		32.0	%		53.0	%		21.0	p.p.		56.9	%		53.0	%
Payment Services		5,572			2,926			(47.5	)%		8,601			6,462			(24.9	)%		33.6			74.2
PS Adjusted Net Profit margin, %		59.8	%		40.6	%		(19.2	)p.p.		57.5	%		45.6	%		(11.8	)p.p.		40.6	%		45.6	%
Digital Marketing (DM)		(56	)		213			(480.4	)%		(26	)		329			(1365.4	)%		2.4			3.8
DM Adjusted Net Profit margin, %		(43.8	)%		22.9	%		66.7	p.p.		(9.1	)%		19.7	%		28.8	p.p.		22.9	%		19.7	%
Corporate and Other (CO)		(2,552	)		2,095			(182.1	)%		(3,285	)		2,623			(179.8	)%		24.1			30.1
Tochka		-			-						(15	)		-			(100.0	)%		-			-
ROWI		321			72			(77.5	)%		372			256			(31.2	)%		0.8			2.9
Corporate and Other projects		(2,873	)		2,023			(170.4	)%		(3,641	)		2,367			(165.0	)%		23.2			27.2

Adjusted EBITDA decreased by 27.5% YoY to RUB 5,057 million ($58.1 million) mainly due to (i) the high base effect of last year resulting in Total Net Revenue decline by 9.9% YoY, and (ii) an increase of operating expenses to secure growth of the business, which were (iii) partially offset by the release of allowance for ECL on restricted cash accounts. Adjusted EBITDA margin decreased by 13.3 ppts YoY to 55.0% driven by the factors described above and the consolidation of the new RealWeb business operating with lower margin than the PS segment.

Adjusted Net Profit increased by 76.6% YoY to RUB 5,234 million ($60.0 million). Adjusted Net Profit margin increased by 27.9 ppts YoY to 56.9% primarily driven by the foreign exchange gain partially offset by the consolidation of the RealWeb business operating with a lower margin than the PS segment.

PS Adjusted Net Profit decreased by 47.5% YoY to RUB 2,926 million ($33.6 million) mainly due to (i) the high base effect of last year resulting in PS Net Revenue decline by 22.6% YoY, and (ii) an increase of operating expenses to secure growth of the business. As a result, PS Adjusted Net Profit margin deteriorated by 19.2 ppts to 40.6% mainly due to a combination of (i) negative operating leverage effect, (ii) increased personnel expenses (described earlier), and (iii) higher expenses related to multi-bank platform services in QIWI Bank.

Digital Marketing (DM) Adjusted Net Profit for 2Q 2023 increased to RUB 213 million ($2.4 million) due to Flocktory Net Revenue growth and the consolidation of new RealWeb business. DM Adjusted Net Profit margin stood at 22.9%.

CO Adjusted Net Profit increased to RUB 2,095 million ($24.1 million) compared to CO Net loss of RUB 2,552 million driven by:

●

CO Net Profit of RUB 2,023 million ($23.2 million) resulting primarily from the CO Net Revenue YoY growth by 37.7% described above, the foreign exchange gain, and the release of allowance for ECL on restricted cash accounts.

●

ROWI Net Profit of RUB 72 million ($0.8 million) as a result of its Net Revenue decline by 7.2% YoY and an increase of provisions related to ROWI bank guarantees portfolio.

Update on the CBR restrictions

On July 25, 2023, during a routine audit of Qiwi Bank, the CBR issued an order to introduce temporary and partial limitations for individuals to withdraw funds from QIWI wallets to bank accounts or make cash withdrawals. As of the date of this press release, Qiwi Bank has already fixed the identified deficiencies and provided results to the regulator. We are working closely with the CBR to lift the limitations fully or at least partially.

For indicative purposes only, the Company performed a worst-case stress test based on 1H 2023 actual results and estimated that if the full scope of restrictions were in place since the beginning of 1H 2023, it would have affected (i) Payment Volume by up to 20%, (ii) Group Net Revenue by up to 25%, and (iii) Group Adjusted Net Profit by up to 40%. The stress test did not include any cost optimization measures or gradual restrictions relief. The Company also aims to further develop its services and launch new products, in order to mitigate the negative implications of the imposed restrictions on the financial results of the Company.

The Company remains financially stable and profitable despite the imposed restrictions. Qiwi Bank has substantial liquidity reserves and maintains the required capital adequacy ratios.

Dividends

Due to the lingering stock market infrastructure issues, the Company does not see the opportunity to arrange the distribution of dividends or repurchase shares with the equal treatment of all existing shareholders. Therefore, the Board decided to keep the distribution of dividends under review until changes of the sanction regime or other developments enable the Company to distribute dividends to all of its shareholders.

Update on corporate restructuring

Since the beginning of the Ukrainian conflict, the geopolitical situation has been deteriorating, sanctions expanded and extended, and the world stock market infrastructure continued to isolate from Russia. The Company has been searching for a viable solution to address the many shareholders’ concerns, as well as to define an optimal way for further development.

The Company has been facing extraordinary challenges to the operations of the business and needs to navigate in a rapidly changing business environment. Under current circumstances, QIWI’s intentions to develop its business within the Russian perimeter and overseas require different strategies. Management and the Board of Directors of QIWI PLC have concluded that the best option to preserve liquidity and shareholder value would be to restructure its business and to exit the Russian market.

The Company has completed internal restructuring and consolidated practically all Russian assets under JSC QIWI. The Company also completed a valuation of the Russian assets. The valuation report has been prepared by an independent appraiser and received the required approval by a self-regulatory organization.

Further, the Board established a Special Committee comprised of Independent Directors of the Company to review available divestment options. Currently, the Special Committee and management, assisted by reputable advisors, are conducting a disciplined process intended to ensure the best outcome for the Company and the different groups of shareholders using three major criteria: 1) liquidity, 2) ability to receive cash, and 3) ability to exercise voting rights.

The Company will duly inform the market on further developments as regards the restructuring process.

Earnings Conference Call and Audio Webcast

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

About QIWI plc.

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

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

For more information, visit investor.qiwi.com.

Contact

Investor Relations

+357.25028091

ir@qiwi.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total net revenue, adjusted net profit and net revenue yield, dividend payments, payment volume growth, growth of physical and virtual distribution channels, trends in each of our market verticals and statements regarding the development of our ROWI, RealWeb, Flocktory and other projects, the impact of recent sanctions targeting Russia, the impact of such sanctions on our results of operations, potential further changes in the regulatory regime, the effect of the CBR restrictions on results of operations, any other restriction the CBR may impose based on our past and future operations, our ability to eliminate partially or completely the CBR restrictions, and others. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our markets, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

QIWI plc.

Consolidated Statement of Financial Position

(in millions)

	As of December 31,		As of June 30,		As of June 30,
	2022		2023		2023
			(Unaudited)		(Unaudited)
	RUB		RUB		USD
Assets
Non-current assets
Property and equipment		1,163		1,271		14.6
Goodwill and other intangible assets		13,126		13,077		150.3
Investments in associates		303		579		6.7
Long-term debt securities		2,946		4,991		57.3
Long-term loans issued		843		623		7.2
Other non-current assets		257		241		2.8
Deferred tax assets		208		242		2.8
Total non-current assets		18,846		21,024		241.6
Current assets
Trade and other receivables		15,194		12,169		139.8
Short-term loans issued		14,200		16,728		192.2
Short-term debt securities		14,029		28,809		331.0
Other current assets		2,195		1,846		21.2
Cash and cash equivalents		47,462		39,570		454.6
Total current assets		93,080		99,122		1,138.9
Total assets		111,926		120,146		1,380.4
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital		1		1		0.01
Additional paid-in capital		1,876		1,876		21.6
Share premium		12,068		12,068		138.7
Other reserves		2,696		2,352		27.0
Retained earnings		39,941		48,935		562.3
Translation reserve		401		169		1.9
Total equity attributable to equity holders of the parent		56,983		65,401		751.4
Non-controlling interests		912		977		11.2
Total equity		57,895		66,378		762.7
Non-current liabilities
Long-term deferred income		1,154		1,062		12.2
Long-term lease liabilities		133		84		1.0
Other non-current liabilities		156		81		0.9
Deferred tax liabilities		1,847		1,749		20.1
Total non-current liabilities		3,290		2,976		34.2
Current liabilities
Trade and other payables		33,048		29,740		341.7
Customer accounts and amounts due to banks		11,203		15,011		172.5
Short-term debt		3,922		3,745		43.0
Short-term lease liabilities		300		302		3.5
Other current liabilities		2,268		1,994		22.9
Total current liabilities		50,741		50,792		583.6
Total equity and liabilities		111,926		120,146		1,380.4

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

	Three months ended (unaudited)
	June 30, 2022			June 30, 2023			June 30, 2023
	RUB			RUB			USD
Revenue:		14,015			18,037			207.2
Revenue from contracts with customers		11,650			15,645			179.8
Interest revenue calculated using the effective interest rate		1,929			1,944			22.3
Fees from inactive accounts and unclaimed payments		436			448			5.1

Operating costs and expenses:		(7,425	)		(13,295	)		(152.8	)
Cost of revenue (exclusive of items shown separately below)		(3,807	)		(8,843	)		(101.6	)
Selling, general and administrative expenses		(773	)		(1,184	)		(13.6	)
Personnel expenses		(2,002	)		(3,034	)		(34.9	)
Depreciation and amortization		(287	)		(315	)		(3.6	)
Credit loss (expense)/income		(520	)		81			0.9
Impairment of non-current assets		(36	)		-			-
Profit from operations		6,590			4,742			54.5

Share of loss of an associate		-			(5	)		(0.1	)
Foreign exchange gain/(loss), net		(2,369	)		1,296			14.9
Other income and expenses, net		22			(262	)		(3.0	)
Profit before tax		4,243			5,771			66.3
Income tax expense		(1,433	)		(954	)		(11.0	)
Net profit for the period		2,810			4,817			55.3
Attributable to:
Equity holders of the parent		2,625			4,653			53.5
Non-controlling interests		185			164			1.9

Other comprehensive (loss)/income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations		88			143			1.6
Net gain recycled to profit or loss upon disposal		-			-			-
Debt securities at fair value through other comprehensive income (FVOCI):
Net gain/(loss) arising during the period, net of tax		964			(77	)		(0.9	)
Net gain recycled to profit or loss upon disposal		-			(18	)		(0.2	)
Share of other comprehensive Income of an associate		-			(1	)		(0.0	)
Total other comprehensive (loss)/income, net of tax		1,052			47			0.5
Total comprehensive income, net of tax		3,862			4,864			55.9
Attributable to:
Equity holders of the parent		3,697			4,689			53.9
Non-controlling interests		165			175			2.0

Earnings per share:
Basic, earnings attributable to ordinary equity holders of the parent		41.93			74.20			0.85
Diluted, earnings attributable to ordinary equity holders of the parent		41.93			74.20			0.85

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

	Six months ended (unaudited)
	June 30, 2022			June 30, 2023			June 30, 2023
	RUB			RUB			USD
Revenue:		23,732			35,909			412.6
Revenue from contracts with customers		19,460			31,373			360.5
Interest revenue calculated using the effective interest rate		3,381			3,708			42.6
Fees from inactive accounts and unclaimed payments		891			828			9.5

Operating costs and expenses:		(13,732	)		(26,997	)		(310.2	)
Cost of revenue (exclusive of items shown separately below)		(7,219	)		(18,163	)		(208.7	)
Selling, general and administrative expenses		(1,544	)		(2,143	)		(24.6	)
Personnel expenses		(3,675	)		(5,785	)		(66.5	)
Depreciation and amortization		(564	)		(624	)		(7.2	)
Credit loss (expense)/income		(694	)		(282	)		(3.2	)
Impairment of non-current assets		(36	)		-			-
Profit from operations		10,000			8,912			102.4

Gain from disposal of subsidiary		-			424			4.9
Share of loss of an associate		-			(44	)		(0.5	)
Foreign exchange gain/(loss), net		(2,810	)		2,115			24.3
Other income and expenses, net		111			(246	)		(2.8	)
Profit before tax		7,301			11,161			128.2
Income tax expense		(2,234	)		(1,845	)		(21.2	)
Net profit for the period		5,067			9,316			107.0
Attributable to:
Equity holders of the parent		4,799			8,994			103.3
Non-controlling interests		268			322			3.7

Other comprehensive (loss)/income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations		76			213			2.4
Net gain recycled to profit or loss upon disposal		-			(424	)		(4.9	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gain/(loss) arising during the period, net of tax		110			(64	)		(0.7	)
Net gain recycled to profit or loss upon disposal		-			(18	)		(0.2	)
Share of other comprehensive Income of an associate		-			3			0.0
Total other comprehensive (loss)/income, net of tax		186			(290	)		(3.3	)
Total comprehensive income, net of tax		5,253			9,026			103.7
Attributable to:
Equity holders of the parent		5,006			8,683			99.8
Non-controlling interests		247			343			3.9

Earnings per share:
Basic, earnings attributable to ordinary equity holders of the parent		76.75			143.42			1.65
Diluted, earnings attributable to ordinary equity holders of the parent		76.75			143.42			1.65

QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

	Six months ended (unaudited)
	June 30, 2022			June 30, 2023			June 30, 2023
	RUB			RUB			USD(1)
Operating activities
Profit before tax		7,301			11,161			128.2
Adjustments to reconcile profit before tax to net cash flows generated from operating activities
Depreciation and amortization		564			624			7.2
Foreign exchange loss/(gain), net		2,810			(2,115	)		(24.3	)
Interest income, net		(3,212	)		(3,540	)		(40.7	)
Credit loss expense		694			282			3.2
Share of loss of an associate		-			44			0.5
Gain from disposal of subsidiary		-			(424	)		(4.9	)
Impairment of non-current assets		36			-			-
Other		78			277			3.2
Net cash flow generated from operating activities before changes in working capital		8,271			6,309			72.5
Changes in operating assets and liabilities:
Decrease/(Increase) in trade and other receivables		(1,739	)		2,847			27.4
Decrease in other assets		144			884			15.5
Increase in customer accounts and amounts due to banks		3,728			3,213			36.9
Decrease in accounts payable and accruals		(5,345	)		(4,519	)		(51.9	)
(Decrease)/Increase in other liabilities		313			(328	)		(3.8	)
Increase in loans issued as operating activity		(1,670	)		(2,459	)		(28.3	)
Cash generated from operations		3,702			5,947			68.3
Interest received		3,569			4,140			47.6
Interest paid		(283	)		(196	)		(2.3	)
Income tax paid		(1,033	)		(2,266	)		(26.0	)
Net cash flow generated from operating activities		5,955			7,625			87.6
Investing activities
Proceeds from sale of an associate		4,855			-			-
Cash paid for investments in associates		-			(315	)		(3.6	)
Cash used in business combinations		(215	)		(50	)		(0.6	)
Purchase of property and equipment		(133	)		(359	)		(4.1	)
Purchase of intangible assets		(106	)		(141	)		(1.6	)
Proceeds from sale of fixed and intangible assets		5			27			0.3
Loans issued		(7	)		(19	)		(0.2	)
Repayment of loans issued		30			79			0.9
Purchase of debt securities		(1,737	)		(19,873	)		(228.3	)
Proceeds from sale and redemption of debt instruments		-			3,150			36.2
Net cash flow generated from investing activities		2,692			(17,501	)		(201.1	)
Financing activities
Repayment of debt		(392	)		(161	)		(1.8	)
Payment of principal portion of lease liabilities		(34	)		(57	)		(0.7	)
Dividends paid to non-controlling shareholders		(106	)		(218	)		(2.5	)
Transactions with non-controlling interest		-			(304	)		(3.5	)
Net cash flow used in financing activities		(532	)		(740	)		(8.5	)
Effect of exchange rate changes on cash and cash equivalents		(2,068	)		2,724			31.3
Effect of change in ECL on cash and cash equivalents		(10	)		-			-
Net increase/(decrease) in cash and cash equivalents equivalents		6,037			(7,892	)		(90.7	)
Cash and cash equivalents at the beginning of the period		33,033			47,462			545.3
Cash and cash equivalents at the end of the period		39,070			39,570			454.6

Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Net Revenue, Payment Services (PS) Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Digital Marketing (DM) Net Revenue, Corporate and Other (CO) Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, PS Adjusted Net Profit, DM Adjusted Net Profit, CO Adjusted Net Profit, and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of Total Net Revenue, PS Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, DM Net Revenue, CO Net Revenue; Net Profit, in the case of Adjusted EBITDA, Adjusted Net Profit, PS Adjusted Net Profit, DM Adjusted Net Profit, CO Adjusted Net Profit, and earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS.

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

We define non-IFRS financial measures as follows:

●

“Total Net Revenue” is calculated by subtracting cost of revenue from revenue.

●

“Adjusted EBITDA” as Net profit plus/(less): (1) depreciation and amortization, (2) other expenses/(income), (3) foreign exchange loss/(gain), (4) share of loss/(gain) of associates and joint ventures, (5) interest expenses/ (income), (6) income tax expenses, (7) share-based payment expenses, (8) impairment of non-current assets, (9) loss/(gain) on disposal of subsidiary.

●

“Adjusted Net profit” as Net profit plus/(less): (1) fair value adjustments recorded on business combinations and their amortization, (2) impairment of non-current assets, (3) share-based payment expenses, (4) loss/(gain) on disposal of subsidiary, (5) effect of taxation of the above items.

●

“Adjusted EBITDA Margin” as Adjusted EBITDA divided by Total Net Revenue.

●

“Adjusted Net profit Margin” as Adjusted Net profit divided by Total Net Revenue.

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

We provide a breakdown of Total Net Revenue by segments - PS Net Revenue, including PS Payment Net Revenue and PS Other Net Revenue, DM Net Revenue, CO Net Revenue. We define the above measures as follows:

●

PS Payment Net Revenue is the Net Revenue comprising the merchant and consumer fees collected for the payment transactions.

●

PS Other Net Revenue primarily comprises revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees.

●

DM Net Revenue includes revenue generated with services provided for context and media advertising management services, including platform services under subscription, social network presence, programmatic, CPA and mobile marketing type of services. The segment includes results of full-cycle digital marketing service provider RealWeb and Flocktory services in marketing automation and advertising technologies.

●

CO Net Revenue comprises from results of ROWI business, Tochka project (before 2Q2022) and Corporate and Other projects, including interest income.

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

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

In order to reflect the operational profitability of each segment, we provide a following breakdown of Adjusted Net Profit: Payment Services Adjusted Net Profit, Digital Marketing Adjusted Net Profit, Corporate and Other Adjusted Net Profit.

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

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

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

	Three months ended (unaudited)
	June 30, 2022			June 30, 2023			June 30, 2023
	RUB			RUB			USD
Revenue		14,015			18,037			207.2
Minus: Cost of revenue		3,807			8,843			101.6
Total Net Revenue		10,208			9,194			105.6
Segment Net Revenue
Payment Services Segment Revenue		12,854			11,087			127.4

PS Payment Revenue(1)		10,839			8,687			99.8
Minus: Cost of PS Payment Revenue ⁽²⁾		3,260			3,645			41.9
PS Payment Net Revenue		7,579			5,042			57.9

PS Other Revenue(3)		2,015			2,400			27.6
Minus: Cost of PS Other Revenue ⁽⁴⁾		276			227			2.6
PS Other Net Revenue		1,739			2,173			25.0
Payment Services Segment Net Revenue		9,318			7,215			82.9

Digital Marketing Revenue		187			5,600			64.3
Minus: Cost of DM revenue		59			4,669			53.7
Digital Marketing Net Revenue		128			930			10.7

Corporate and Other Category Revenue		974			1,350			15.5
Minus: Cost of CO Revenue		212			301			3.5
Corporate and Other Category Net Revenue		762			1,049			12.1

Total Segment Net Revenue		10,208			9,194			105.6

Net profit		2,810			4,817			55.3
Plus:
Depreciation and amortization		287			315			3.6
Other income and expenses, net		(22	)		262			3.0
Foreign exchange (gain)/loss, net		2,369			(1,296	)		(14.9	)
Gain on disposal of subsidiary		-			-			-
Share of gain/(loss) of an associate		-			5			0.1
Income tax expenses		1,433			954			11.0
Share-based payment expenses		59			-			-
Impairment of non-current assets		36			-			-
Adjusted EBITDA		6,972			5,057			58.1
Adjusted EBITDA margin		68.3	%		55.0	%		55.0	%

Net profit		2,810			4,817			55.3
Fair value adjustments recorded on business combinations and their amortization(5)		98			438			5.0
Impairment of non-current assets		36			-			-
Share-based payment expenses		59			-			-
Gain on disposal of subsidiary		-			-			-
Effect from taxation of the above items		(39	)		(21	)		(0.2	)
Adjusted Net Profit		2,964			5,234			60.0

Adjusted Net Profit per share:
Basic		47.35			83.46			0.96
Diluted		47.35			83.46			0.96

Weighted-average number of shares used in computing Adjusted Net Profit per share:
Basic		62,600			62,713			62,713
Diluted		62,600			62,713			62,713

(1)

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

(2)

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

(3)

PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees.

(4)

Cost of PS Other Revenue primarily consists of direct costs associated with other revenue and other costs, including but not limited to: interest expenses related to issued bonds, costs of sms notification, advertising commissions.

(5)

Amortization of fair value adjustments primarily includes the effect of the acquisition of control in CONTACT, Rapida and Realweb.

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

	Six months ended (unaudited)
	June 30, 2022			June 30, 2023			June 30, 2023
	RUB			RUB			USD
Revenue		23,732			35,909			412.6
Minus: Cost of revenue		7,219			18,163			208.7
Total Net Revenue		16,513			17,746			203.9
Segment Net Revenue
Payment Services Segment Revenue		21,584			21,890			251.5

PS Payment Revenue(1)		17,787			17,435			200.3
Minus: Cost of PS Payment Revenue ⁽²⁾		6,088			7,307			84.0
PS Payment Net Revenue		11,699			10,128			116.4

PS Other Revenue(3)		3,797			4,455			51.2
Minus: Cost of PS Other Revenue ⁽⁴⁾		529			424			4.9
PS Other Net Revenue		3,268			4,031			46.3
Payment Services Segment Net Revenue		14,967			14,159			162.7

Digital Marketing Revenue		388			11,522			132.4
Minus: Cost of DM revenue		103			9,851			113.2
Digital Marketing Net Revenue		285			1,671			19.2

Corporate and Other Category Revenue		1,760			2,497			28.7
Minus: Cost of CO Revenue		498			581			6.7
Corporate and Other Category Net Revenue		1,261			1,916			22.0

Total Segment Net Revenue		16,513			17,746			203.9

Profit for the period		5,067			9,316			107.0
Plus:
Depreciation and amortization		564			624			7.2
Other income and expenses, net		(111	)		246			2.8
Foreign exchange (gain)/loss, net		2,810			(2,115	)		(24.3	)
Gain on disposal of an associate		-			(424	)		(4.9	)
Share of gain of an associate and a joint venture		-			44			0.5
Income tax expenses		2,234			1,845			21.2
Share-based payment expenses		59			-			-
Impairment of non-current assets		36			-			-
Adjusted EBITDA		10,659			9,536			109.6
Adjusted EBITDA margin		64.5	%		53.7	%		53.7	%

Profit for the period		5,067			9,316			107.0
Fair value adjustments recorded on business combinations and their amortization(5)		181			563			6.5
Impairment of non-current assets		36			-			-
Share-based payment expenses		59			-			-
Gain on disposal of an associate		-			(424	)		(4.9	)
Effect from taxation of the above items		(53	)		(41	)		(0.5	)
Adjusted Net Profit		5,290			9,414			108.2

Adjusted Net Profit per share:
Basic		84.61			150.11			1.72
Diluted		84.61			150.11			1.72

Weighted-average number of shares used in computing Adjusted Net Profit per share:
Basic		62,525			62,713			62,713
Diluted		62,525			62,713			62,713

(1)

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

(2)

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

(3)

(4)

(5)

Amortization of fair value adjustments primarily includes the effect of the acquisition of control in CONTACT, Rapida and Realweb.

Exhibit 99.2

QIWI plc

Unaudited interim condensed consolidated

financial statements

June 30, 2023

QIWI plc

Unaudited interim condensed consolidated financial statements

June 30, 2023

Content

Report of Independent Registered Public Accounting Firm	F-2

Interim condensed consolidated financial statements

Interim condensed consolidated statement of financial position	F-3
Interim condensed consolidated statement of comprehensive income	F-4
Interim condensed consolidated statement of cash flows	F-5
Interim condensed consolidated statement of changes in equity	F-6

Notes to interim condensed consolidated financial statements	F-8

F-1

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

QIWI plc:

Results of Review of Interim Financial Information

We have reviewed the interim condensed consolidated statement of financial position of QIWI plc and subsidiaries (the “Group”) as of June 30, 2023, the related interim condensed consolidated statements of comprehensive income for the three-month and six-month periods ended June 30, 2023 and 2022, interim condensed consolidated statements of cash flows and changes in equity for the six-month periods ended June 30, 2023 and 2022, and the related notes (collectively referred to as the “interim condensed consolidated financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the interim condensed consolidated financial information for it to be in conformity with IAS 34 Interim Financial Reporting.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Group as of December 31, 2022, the related consolidated statements of comprehensive income, cash flows and changes in equity for the year then ended, and the related notes (not presented herein); and in our report dated March 31, 2023, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2022, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

Basis for Review Results

This interim condensed consolidated financial information is the responsibility of the Group’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB. A review of interim consolidated condensed financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ JSC “Kept”

Moscow, Russia

August 16, 2023

F-2

QIWI plc

Interim condensed consolidated statement of financial position

(in millions of rubles)

	Notes		As of December 31, 2022		As of June 30, 2023 (Unaudited)
Assets
Non-current assets
Property and equipment				1,163		1,271
Goodwill and other intangible assets				13,126		13,077
Investments in associates		13		303		579
Long-term debt securities		21		2,946		4,991
Long-term loans issued		6, 21		843		623
Other non-current assets				257		241
Deferred tax assets				208		242
Total non-current assets				18,846		21,024

Current assets
Trade and other receivables		7		15,194		12,169
Short-term loans issued		6		14,200		16,728
Short-term debt securities		21		14,029		28,809
Other current assets		9		2,195		1,846
Cash and cash equivalents		8		47,462		39,570
Total current assets				93,080		99,122
Total assets				111,926		120,146

Equity and liabilities
Equity attributable to equity holders of the parent
Share capital				1		1
Additional paid-in capital				1,876		1,876
Share premium				12,068		12,068
Other reserves				2,696		2,352
Retained earnings				39,941		48,935
Translation reserve				401		169
Total equity attributable to equity holders of the parent				56,983		65,401
Non-controlling interests				912		977
Total equity				57,895		66,378

Non-current liabilities
Long-term deferred income				1,154		1,062
Long-term lease liabilities		14		133		84
Other non-current liabilities				156		81
Deferred tax liabilities				1,847		1,749
Total non-current liabilities				3,290		2,976

Current liabilities
Trade and other payables		10		33,048		29,740
Customer accounts and amounts due to banks		11		11,203		15,011
Short-term debt		12		3,922		3,745
Short-term lease liabilities		14		300		302
Other current liabilities		9		2,268		1,994
Total current liabilities				50,741		50,792
Total equity and liabilities				111,926		120,146

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

F-3

QIWI plc

Interim condensed consolidated statement of comprehensive income

(in millions of rubles, except per share data)

(Unaudited)

	Notes		Three months ended			Six months ended			Three months ended			Six months ended
			June 30, 2022						June 30, 2023
Revenue:				14,015			23,732			18,037			35,909
Revenue from contracts with customers		15		11,650			19,460			15,645			31,373
Interest revenue calculated using the effective interest rate		15		1,929			3,381			1,944			3,708
Fees from inactive accounts and unclaimed payments				436			891			448			828
Operating costs and expenses:				(7,425	)		(13,732	)		(13,295	)		(26,997	)
Cost of revenue (exclusive of items shown separately below)		16		(3,807	)		(7,219	)		(8,843	)		(18,163	)
Selling, general and administrative expenses		17		(773	)		(1,544	)		(1,184	)		(2,143	)
Personnel expenses				(2,002	)		(3,675	)		(3,034	)		(5,785	)
Depreciation and amortization				(287	)		(564	)		(315	)		(624	)
Credit loss (expense)/income		6,7,8		(520	)		(694	)		81			(282	)
Impairment of non-current assets				(36	)		(36	)		–			–
Profit from operations				6,590			10,000			4,742			8,912
Gain from disposal of subsidiary				–			–			–			424
Share of loss of an associate				–			–			(5	)		(44	)
Foreign exchange gain/(loss), net				(2,369	)		(2,810	)		1,296			2,115
Other income and expenses, net				22			111			(262	)		(246	)
Profit before tax				4,243			7,301			5,771			11,161
Income tax expense		18		(1,433	)		(2,234	)		(954	)		(1,845	)
Net profit for the period				2,810			5,067			4,817			9,316
Attributable to:
Equity holders of the parent				2,625			4,799			4,653			8,994
Non-controlling interests				185			268			164			322

Other comprehensive (loss)/income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations				88			76			143			213
Net gain recycled to profit or loss upon disposal				–			–			–			(424	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gain/(loss) arising during the period, net of tax				964			110			(77	)		(64	)
Net gain recycled to profit or loss upon disposal				–			–			(18	)		(18	)
Share of other comprehensive Income of an associate				–			–			(1	)		3
Total other comprehensive (loss)/income, net of tax				1,052			186			47			(290	)

Total comprehensive income, net of tax				3,862			5,253			4,864			9,026
Attributable to:
Equity holders of the parent				3,697			5,006			4,689			8,683
Non-controlling interests				165			247			175			343

Earnings per share:
Basic, earnings attributable to ordinary equity holders of the parent				41.93			76.75			74.20			143.42
Diluted, earnings attributable to ordinary equity holders of the parent				41.93			76.75			74.20			143.42

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

F-4

QIWI plc

Interim condensed consolidated statement of cash flows

(in millions of rubles)

(Unaudited)

			Six months ended
	Notes		June 30, 2022			June 30, 2023
Operating activities

Profit before tax				7,301			11,161
Adjustments to reconcile profit before tax to net cash flows generated from operating activities:
Depreciation and amortization				564			624
Foreign exchange loss/(gain), net				2,810			(2,115	)
Interest income, net		15		(3,212	)		(3,540	)
Credit loss expense				694			282
Share of loss of an associate				–			44
Gain from disposal of subsidiary				–			(424	)
Impairment of non-current assets				36			–
Other				78			277
Changes in operating assets and liabilities:
Decrease/(Increase) in trade and other receivables				(1,739	)		2,847
Decrease in other assets				144			884
Increase in customer accounts and amounts due to banks				3,728			3,213
Decrease in accounts payable and accruals				(5,345	)		(4,519	)
(Decrease)/Increase in other liabilities				313			(328	)
Increase in loans issued as operating activity				(1,670	)		(2,459	)
Cash generated from operations				3,702			5,947
Interest received				3,569			4,140
Interest paid				(283	)		(196	)
Income tax paid				(1,033	)		(2,266	)
Net cash flow generated from operating activities				5,955			7,625
Investing activities
Cash used in business combinations		4		(215	)		(50	)
Cash paid for investments in associates		4		–			(315	)
Proceeds from sale of an associate		4		4,855			–
Purchase of property and equipment				(133	)		(359	)
Purchase of intangible assets				(106	)		(141	)
Proceeds from sale of fixed and intangible assets				5			27
Loans issued				(7	)		(19	)
Repayment of loans issued				30			79
Purchase of debt securities				(1,737	)		(19,873	)
Proceeds from sale and redemption of debt instruments				–			3,150
Net cash flow generated from investing activities				2,692			(17,501	)
Financing activities
Repayment of debt				(392	)		(161	)
Payment of principal portion of lease liabilities		14		(34	)		(57	)
Dividends paid to non-controlling shareholders				(106	)		(218	)
Transactions with non-controlling interest				–			(304	)
Net cash flow used in financing activities				(532	)		(740	)
Effect of exchange rate changes on cash and cash equivalents				(2,068	)		2,724
Effect of change in ECL on cash and cash equivalents				(10	)		–
Net increase/(decrease) in cash and cash equivalents				6,037			(7,892	)
Cash and cash equivalents at the beginning of the period		8		33,033			47,462
Cash and cash equivalents at the end of the period		8		39,070			39,570

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

F-5

QIWI plc

Interim condensed consolidated statement of changes in equity

(in millions of rubles, except number of shares)

(Unaudited)

		Attributable to equity holders of the parent
		Share capital
	Notes	Number of shares issued and outstanding		Amount		Additional paid-in capital		Share premium		Other reserves			Retained earnings		Translation reserve			Total			Non- controlling interests			Total equity
Balance as of January 1, 2023			62,712,975		1		1,876		12,068		2,696			39,941		401			56,983			912			57,895
Profit for the period			–		–		–		–		–			8,994		–			8,994			322			9,316
Other comprehensive income:
Foreign currency translation			–		–		–		–		–			–		(232	)		(232	)		21			(211	)
Debt instruments at FVOCI			–		–		–		–		(82	)		–		–			(82	)		–			(82	)
Share of OCI of an associate			–		–		–		–		3			–		–			3			–			3
Total comprehensive income for the period			–		–		–		–		(79	)		8,994		(232	)		8,683			343			9,026

Purchase of additional interest in subsidiary	4		–		–		–		–		(265	)		–		–			(265	)		(39	)		(304	)
Dividends to non-controlling interests			–		–		–		–		–			–		–			–			(218	)		(218	)
Other			–		–		–		–		–			–		–			–			(21	)		(21	)
Balance as of June 30, 2023			62,712,975		1		1,876		12,068		2,352			48,935		169			65,401			977			66,378

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

F-6

QIWI plc

Interim condensed consolidated statement of changes in equity (continued)

(in millions of rubles, except number of shares)

(Unaudited)

Attributable to equity holders of the parent

Share capital

Notes

Number of
shares
issued and
outstanding

Amount

Additional
paid-in
capital

Share
premium

Other
reserves

Retained
earnings

Translation
reserve

Total

Non-
controlling
interests

Total
equity

Balance as of January 1, 2022

62,437,768

1,876

12,068

2,376

26,822

542

43,685

155

43,840

Profit for the period

–

4,799

–

4,799

268

5,067

Other comprehensive income:

Foreign currency translation

–

(21

)

Debt instruments at FVOCI

–

110

–

110

–

110

Total comprehensive income for the period

–

110

4,799

5,006

247

5,253

Share-based payments

263,841

–

Exercise of options

11,366

–

Dividends to non-controlling interests

–

(106

)

(106

)

Business combinations

–

Other

–

)

–

)

–

)

Balance as of June 30, 2022

62,712,975

1,876

12,068

2,571

31,621

639

48,776

335

49,111

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

F-7

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited)

(in millions of rubles, except when otherwise indicated)

1.	Corporate Information and description of business

The interim condensed consolidated financial statements of QIWI plc (hereinafter “the Company”) and its subsidiaries (collectively “the Group”) for the three and six months ended June 30, 2023 were authorized for issue on August 16, 2023.

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

Sergey Solonin is the ultimate controlling shareholder of the Group as of June 30, 2023.

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

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

2.1. Basis of preparation

The interim condensed consolidated financial statements for the three and six months ended June 30, 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting.

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

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 2022, included in the annual report on form 20-F.

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

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2022, except for the adoption of new and amended IFRS and IFRIC interpretations effective as of January 1, 2023. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The following amended standards and interpretations became effective for the Group from January 1, 2023, but did not have any material impact on the financial statements of the Group:

IFRS 17 Insurance Contracts (issued in May 2017)

Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information (issued in December 2021)

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued in February 2021)

Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued in February 2021)

Amendments to IAS 12 Income tax: Deferred tax related to assets and liabilities arising from a single transaction (issued in May 2021) and International Tax Reform—Pillar Two Model Rules (issued in May 2023)

2.3. Changes in presentation

In 2023 the Group decided to present Payment processing fees and Other revenue as a single «Revenue from contracts with customers».

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

Three months
ended

Six months
ended

Three months
ended

Six months
ended

June 30, 2022

As previously reported

Restated

Revenue from contracts with customers

–

11,650

19,460

Payment processing fees

10,839

17,787

–

Other revenue

811

1,673

–

F-8

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

3.	Group structure

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

		Ownership interest
Subsidiary	Main activity	As of December 31, 2022			As of June 30, 2023
JSC QIWI (Russia)	Operation of electronic payment kiosks		100	%		100	%
QIWI Bank JSC (Russia)	Maintenance of electronic payment systems, money transfers and Bank operations		100	%		100	%
QIWI Payments Services Provider Ltd (UAE)¹	Operation of online payments		100	%		–
QIWI International Payment System LLC (USA)	Operation of electronic payment kiosks		100	%		100	%
Qiwi Kazakhstan LP (Kazakhstan)	Operation of electronic payment kiosks		100	%		100	%
JLLC OSMP BEL (Belarus)	Operation of electronic payment kiosks		51	%		51	%
QIWI-M S.R.L. (Moldova)	Operation of electronic payment kiosks		51	%		51	%
QIWI Technologies LLC (Russia) (Note 4)	Software development		80	%		100	%
ROWI Factoring Plus LLC (Russia)	Factoring services to SME		51	%		51	%
ContactPay Solution (United Kingdom)	Operation of on-line payments		100	%		100	%
Rocket Universe LLC (Russia)	Software development		100	%		100	%
Billing Online Solutions LLC (Russia)	Software development		100	%		100	%
Flocktory Ltd (Cyprus)	Holding company		100	%		100	%
Flocktory Spain S.L. (Spain)	SaaS platform for customer lifecycle management and personalization		100	%		100	%
FreeAtLast LLC (Russia)	SaaS platform for customer lifecycle management and personalization		100	%		100	%
SETTE FZ-LLC (UAE)	Payment Services Provider		100	%		100	%
LALIRA DMCC (UAE)	Payment Services Provider		100	%		100	%
MFC Polet Finance LLC(Russia)	Retail financial services		100	%		100	%
QIWI Finance LLC (Russia)	Financing management		100	%		100	%
ROWI Tech LLC (Russia)	Software development		51	%		51	%
Flocktory LLC (Russia)	Research and development		100	%		100	%
Qiwi Lab LLC (Russia)	Software development		100	%		100	%
QIWI Payments LLC (Russia) (Note 4)	Software development		80	%		100	%
IntellectMoney LLC (Russia)	Software development		100	%		100	%
Managing Company "RealWeb" LLC (Russia)	Management services		100	%		100	%
IA RealWeb LLC (Russia)	Digital marketing		75	%		75	%
Sfera LLC (Russia)	Digital marketing		83	%		83	%
Centra LLC (Russia)	Software development		100	%		100	%
Fusion Tech LLC (Russia) ³	Digital marketing		100	%		–
De Vision LLC (Russia)	Software development		75	%		75	%
Vailmobail LLC (Russia)	Digital marketing		75	%		75	%
Konversiya LLC (Russia)	Recruitment services		75	%		75	%
IA REAL WEB CJSC (Armenia)	Digital marketing		75	%		75	%
RW Consulting SIA (Latvia)	Digital marketing		83	%		83	%
RealWeb Latvia SIA (Latvia)	Digital marketing		83	%		83	%
IT LAB AND PAYMENTS FE LLC (Uzbekistan)	Software development		100	%		100	%
Epic Growth LLC (Russia)²	Digital marketing		–			83	%
Data Go LLC (Russia)²	Software development		–			75	%
Associate
Advanced Digital Applications Holding Ltd (BVI)	Operation of on-line payments		9.91	%		12.6	%

¹	The entity was liquidated during 2023

²	The entities were acquired in 2023 for insignificant consideration

³	The entity was sold in 2023 for insignificant consideration

F-9

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

4.	Acquisitions, disposals and discontinued operations

2022

Taxiaggregator

During December 2021 - January 2022, the Group completed a series of transactions related to the acquisition of assets of the Taxiaggregator business combined with the hiring of its employees into an existing Group subsidiary QIWI Technologies LLC. In January 2022, the Group obtained control over the Taxiaggregator business. As a result, the Group came to own 80% of the business with the remaining 20% owned by the founder of Taxiaggregator. The acquisition has been accounted for using the acquisition method.

Taxiaggregator is a SaaS platform that provides payment solutions and data analytics tool for taxi companies and taxi drivers. The platform allows drivers to see balances and order history from all aggregators consolidated in real time at a convenient interface and get instant payouts after each trip. The transaction falls within the Group’s strategy to further develop its value proposition in payment segment for self-employed. QIWI had been an exclusive payment partner of Taxiaggregator form its inception. The Group’s expenses for information services from the business for the year ended December 31, 2021, amounted to 139.

The consideration measured at fair values comprised the following:

The acquisition date fair value of the Group’s previously held interest			116
Cash consideration			706
Total consideration transferred			822

Cash consideration has been paid in full as of March 31, 2022 (215 during the first quarter 2022 and 491 during the year 2021).

The fair value of the identifiable assets and liabilities as of the date of acquisition was:

	Fair value
Net assets acquired:
Intangible assets		233
Software		64
Client base		169
Deferred tax liabilities		(39	)
Total identifiable net assets at fair value		194
Group’s share of net assets acquired (80%)		155
Goodwill arising on acquisition		667

The Goodwill resulted as the difference between group’s share of fair value of net assets acquired in the business combination and the consideration paid amounted to 667 and related to potential synergy with the Payment services segment of the Group. Goodwill was allocated to CGU Payment services. None of the goodwill recognized is expected to be deductible for income tax purposes.

Revenue and net profit of Taxiaggregator business from the acquisition date to December 31, 2022 was insignificant.

During the second quarter of 2023, the Group acquired remaining 20% for the amount of 304.

F-10

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

4.	Acquisitions, disposals and discontinued operations (continued)

RealWeb

During December 2022, the Group completed a series of transactions related to the acquisition of subsidiaries of RealWeb group. In the middle of December 2022, the Group obtained control over the RealWeb business. As a result, the Group owns 79% of the business and has the intention to increase its share to 100% during the year 2023. The acquisition has been accounted for using the acquisition method. Pre-existing relationships between the Group and RealWeb were not significant.

RealWeb is a leading full-cycle digital marketing service provider in Russia, which provides context and media advertising management services, social network presence, programmatic, CPA and mobile marketing type of services. The transaction allows the Group to attain leading positions in the growing advertising and digital marketing business segments based on RealWeb’s expertise, and to further diversify the Group’s product portfolio.

The consideration transferred to the seller comprised cash only and amounted to 1,773.

The provisional fair value of the identifiable assets and liabilities as of the date of the acquisition was:

Net assets acquired:	Fair value
Intangible assets		1,163
Software		792
Trademarks		371
Trade and other receivables		3,248
Cash and cash equivalents		3,089
Other assets		116
Deferred tax		(123	)
Trade and other payables		(6,140	)
Other liabilities		(273	)
Total identifiable net assets at fair value		1,080
Group’s share of net assets acquired (79%)		849
Goodwill arising on acquisition		924

The Group applied the relief-from-royalty method to determine the fair value of the trademarks and replacement cost approach to determine the fair value of the software. The significant assumptions used to estimate the fair value of the trademarks are the forecasted revenue growth rates, royalty rate and discount rate. The significant assumptions used to estimate the fair value of the software are the number of staff hours required to develop the software and the related personnel cost.

The provisional Goodwill calculated as the difference between the Group’s share of the fair value of the identifiable net assets acquired in the business combination and the consideration paid amounted to 924 and related to the expected synergy with the Group’s existing business. Goodwill was allocated to the new CGU RealWeb. None of the goodwill recognised is expected to be deductible for the income tax purposes.

Revenue of RealWeb business from the acquisition date to December 31, 2022, amounted to 981 and the net profit was insignificant. The management of the Group does not provide the information regarding revenue and profit or loss of the combined entity for the year 2022 as though the acquisition happened on January 1, 2022, due to the fact that RealWeb had no financial statements prepared in accordance with IFRS and therefore preparation of such disclosure would have been impracticable.

F-11

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

4. Acquisitions, disposals and discontinued operations (continued)

RealWeb (continued)

Analysis of cash flows on acquisition:	Amount
Cash paid		(1,773	)
Net cash acquired with the subsidiaries		3,089
Total cash acquired in business combination		1,316

Investment in associate

At the end of September, 2022, the Group acquired a minority stake in fintech company that provides financial services for underbanked customers in Middle East and North Africa region. The transaction is in line with the management plans for an expansion to the international fintech markets. Also, as part of the deal, the Group obtained for free the option to increase its stake in the future, valid until the end of August 2024. The Group recognizes this investment as an associate and accounts for it under the equity method, given the Group has call option and representation on the board of directors of the associate

The consideration measured at fair values was made by the following:

Cash consideration transferred ($11 million)	660
Fair value of option received from associate	(333	)
Total consideration	327

Cash consideration has been paid in full as of the reporting date.

The fair value of the identifiable assets and liabilities as of the date of acquisition was:

Net assets acquired:	Fair value
Intangible assets		408
Accounts receivable		610
Cash and cash equivalents		603
Other assets		25
Debt		(512	)
Trade and other payables		(204	)
Other liabilities		(57	)
Total identifiable net assets at fair value		873
Group’s share of net assets acquired		86
Goodwill arising on acquisition		241

Goodwill related to the associate amounted to 241 and is included in the carrying amount of the investment in associate.

At the end of June 2023, the Group invested another tranche of cash in the amount of 315 and recognized additional goodwill of 308.

F-12

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

5.	Operating segments

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

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

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

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

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

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

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

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

Digital Marketing (DM) is the operating segment that generates revenue through providing context and media advertising management services, including platform services under subscription, social network presence, programmatic, CPA and mobile marketing type of services. After RealWeb acquisition in December 2022 (note 4), DM segment exceeds the quantitative thresholds, thus became reportable. Results of DM segment were previously presented in Corporate and Other category.

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

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

F-13

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

5.	Operating segments (continued)

The segments’ interim condensed consolidated statements of income for the six months ended June 30, 2023, as presented to the CODM are presented below:

	Six months ended June 30, 2023
	PS		DM		CO		Total
Segment net revenue		14,159		1,671		1,916		17,746
Segment profit before tax		8,112		375		2,813		11,300
Segment net profit/(loss)		6,462		329		2,623		9,414

The segments’ interim condensed consolidated statements of income for the three months ended June 30, 2023, as presented to the CODM are presented below:

	Three months ended June 30, 2023
	PS		DM		CO		Total
Segment net revenue		7,215		930		1,049		9,194
Segment profit before tax		3,733		250		2,226		6,209
Segment net profit/(loss)		2,926		213		2,095		5,234

The segments’ interim condensed consolidated statements of income for the six months ended June 30, 2022, as presented to the CODM are presented below:

	Six months ended June 30, 2022
	PS		DM			CO			Total
Segment net revenue		14,967		285			1,261			16,513
Segment profit/(loss) before tax		10,735		(37	)		(3,121	)		7,577
Segment net profit/(loss)		8,601		(26	)		(3,285	)		5,290

The segments’ interim condensed consolidated statements of income for the three months ended June 30, 2022, as presented to the CODM are presented below:

	Three months ended June 30, 2022
	PS		DM			CO			Total
Segment net revenue		9,318		128			762			10,208
Segment profit/(loss) before tax		6,979		(67	)		(2,476	)		4,436
Segment net profit/(loss)		5,572		(56	)		(2,552	)		2,964

F-14

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

5.	Operating segments (continued)

Segment net revenue, as presented to the CODM, for the three and six months ended June 30, 2023 and 2022 is calculated by subtracting cost of revenue from revenue as presented in the table below:

	Three months ended June 30, 2022			Six months ended June 30, 2022			Three months ended June 30, 2023			Six months ended June 30, 2023
Revenue under IFRS		14,015			23,732			18,037			35,909
Cost of revenue		(3,807	)		(7,219	)		(8,843	)		(18,163	)
Total segments net revenue, as presented to CODM		10,208			16,513			9,194			17,746

A reconciliation of segment profit before tax as presented to the CODM to IFRS interim condensed consolidated profit before tax of the Group, for the three and six months ended June 30, 2023 and 2022, is presented below:

	Three months ended June 30, 2022		Six months ended June 30, 2022		Three months ended June 30, 2023		Six months ended June 30, 2023
Interim condensed consolidated profit before tax under IFRS		4,243		7,301		5,771		11,161
Fair value adjustments recorded on business combinations, and their amortization		98		181		438		563
Gain on disposal of subsidiary		–		–		–		(424	)
Impairment of non-current assets		36		36		–		–
Share-based payments		59		59		–		–
Total segments profit before tax, as presented to CODM		4,436		7,577		6,209		11,300

A reconciliation of segment net profit as presented to the CODM to IFRS interim condensed consolidated net profit of the Group, for the three and six months ended June 30, 2023 and 2022, is presented below:

	Three months ended June 30, 2022			Six months ended June 30, 2022			Three months ended June 30, 2023			Six months ended June 30, 2023
Interim condensed consolidated net profit under IFRS		2,810			5,067			4,817			9,316
Fair value adjustments recorded on business combinations, and their amortization		98			181			438			563
Gain on disposal of subsidiary		–			–			–			(424	)
Impairment of non-current assets		36			36			–			–
Share-based payments		59			59			–			–
Effect from taxation of the above items		(39	)		(53	)		(21	)		(41	)
Total segments net profit, as presented to CODM		2,964			5,290			5,234			9,414

F-15

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

5.	Operating segments (continued)

Geographic information

Revenues from external customers are presented below:

	Three months ended June 30, 2022		Six months ended June 30, 2022		Three months ended June 30, 2023		Six months ended June 30, 2023
Russia		12,681		21,085		14,767		28,757
Other CIS		727		1,409		844		1,738
EU		172		340		1,740		4,186
Other		435		898		686		1,228
Total revenue		14,015		23,732		18,037		35,909

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

The Group does not have any single external customer amounting to 10% or greater of the Group’s revenue for the six months and the three months ended June 30, 2023 and for the six months ended June 30, 2022. There was one third party customer, which generated revenues in excess of 10% (13.7%) of the Group’s revenue for the three months ended June 30, 2022. This revenue was generated within the PS segment.

Disaggregated revenue information

Disaggregation of revenues from contracts with customers for the six months ended June 30, 2023 are presented below:

	PS		DM		CO		Total
Payment processing fees		17,435		–		–		17,435
Cash and settlement service fees		1,233		–		5		1,238
Platform and marketing services related fees		81		11,377		–		11,458
Fees for guarantees issued		9		–		886		895
Other revenue		237		75		35		347
Total revenue from contracts with customers		18,995		11,452		926		31,373

Disaggregation of revenues from contracts with customers for the three months ended June 30, 2023 are presented below:

	PS		DM		CO		Total
Payment processing fees		8,687		–		–		8,687
Cash and settlement service fees		719		–		3		722
Platform and marketing services related fees		36		5,517		–		5,553
Fees for guarantees issued		4		–		474		478
Other revenue		137		49		19		205
Total revenue from contracts with customers		9,583		5,566		496		15,645

F-16

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

5.	Operating segments (continued)

Disaggregation of revenues from contracts with customers for the six months ended June 30, 2022 are presented below:

	PS		DM		CO		Total
Payment processing fees		17,787		–		–		17,787
Cash and settlement service fees		383		–		77		460
Platform and marketing services related fees		57		379		–		436
Fees for guarantees issued		10		–		590		600
Other revenue		167		–		10		177
Total revenue from contracts with customers		18,404		379		677		19,460

Disaggregation of revenues from contracts with customers for the three months ended June 30, 2022 are presented below:

	PS		DM		CO		Total
Payment processing fees		10,839		–		–		10,839
Cash and settlement service fees		185		–		–		185
Platform and marketing services related fees		23		178		–		201
Fees for guarantees issued		5		–		329		334
Other revenue		86		–		5		91
Total revenue from contracts with customers		11,138		178		334		11,650

F-17

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

6. Long-term and short-term loans issued

As of June 30, 2023, long-term and short-term loans issued consisted of the following:

	Total as of June 30, 2023		Expected credit loss allowance			Net as of June 30, 2023
Long-term loans
Loans to legal entities, including SME		636		(16	)		620
Loans to individuals		3		–			3
Total long-term loans		639		(16	)		623
Short-term loans
Factoring loans		12,245		(155	)		12,090
Loans to legal entities, including SME		4,881		(327	)		4,554
Loans to individuals		193		(109	)		84
Total short-term loans		17,319		(591	)		16,728

As of December 31, 2022, long-term and short-term loans consisted of the following:

	Total as of December 31, 2022		Expected credit loss allowance			Net as of December 31, 2022
Long-term loans
Loans to legal entities, including SME		871		(28	)		843
Total long-term loans		871		(28	)		843
Short-term loans
Factoring loans		12,668		(100	)		12,568
Loans to legal entities, including SME		1,840		(254	)		1,586
Loans to individuals		85		(39	)		46
Total short-term loans		14,593		(393	)		14,200

The amounts in the tables show the maximum exposure to credit risk regarding loans issued. Loans issued within the factoring scheme are collateralized with the accounts receivable of the debtor. The other part of loans issued are not collateralized.

F-18

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

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

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the six months ended June 30, 2023, was the following:

	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of January 1, 2023		(24	)		(120	)		(277	)		(421	)
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		(162	)		40			(68	)		(190	)
Transfers between stages		121			(2	)		(119	)		–
Amounts sold and written off		–			–			4			4
ECL allowance as of June 30, 2023		(65	)		(82	)		(460	)		(607	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the three months ended June 30, 2023, was the following:

	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of April 1, 2023		(90	)		(76	)		(363	)		(529	)
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		24			(5	)		(97	)		(78	)
Transfers between stages		1			(1	)		–			–
Amounts sold and written off		–			–			–			–
ECL allowance as of June 30, 2023		(65	)		(82	)		(460	)		(607	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the six months ended June 30, 2022, was the following:

	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of January 1, 2022		(34	)		(5	)		(53	)		(92	)
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		–			(120	)		(77	)		(197	)
Transfers between stages		9			(3	)		(6	)		–
Amounts sold and written off		–			–			7			7
ECL allowance as of June 30, 2022		(25	)		(128	)		(129	)		(282	)

An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the three months ended June 30, 2022, was the following:

	Stage 1 Collective			Stage 2 Collective			Stage 3			Total
ECL allowance as of April 1, 2022		(21	)		(65	)		(80	)		(166	)
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period		(7	)		(61	)		(55	)		(123	)
Transfers between stages		3			(2	)		(1	)		–
Amounts sold and written off		–			–			7			7
ECL allowance as of June 30, 2022		(25	)		(128	)		(129	)		(282	)

As of June 30, 2023, and December 31, 2022, the Group had no overdue but not impaired loans.

F-19

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

7.	Trade and other receivables

As of June 30, 2023, trade and other receivables consisted of the following:

	Total as of June 30, 2023		Expected credit loss allowance			Net as of June 30, 2023
Cash receivable from agents		1,623		(178	)		1,445
Deposits issued to merchants		5,685		(15	)		5,670
Receivables related to marketing activity		3,539		(59	)		3,480
Receivables related to guarantees issued and exercised		1,000		(933	)		67
Commissions receivable		276		(15	)		261
Other receivables		869		(111	)		758
Total financial assets		12,992		(1,311	)		11,681
Advances issued		488		–			488
Total trade and other receivables		13,480		(1,311	)		12,169

As of December 31, 2022, trade and other receivables consisted of the following:

	Total as of December 31, 2022		Expected credit loss allowance			Net as of December 31, 2022
Cash receivable from agents		4,385		(325	)		4,060
Deposits issued to merchants		6,771		(15	)		6,756
Receivables related to marketing activity		3,422		(20	)		3,402
Receivables related to guarantees issued and exercised		686		(589	)		97
Commissions receivable		394		(30	)		364
Other receivables		226		(37	)		189
Total financial assets		15,884		(1,016	)		14,868
Advances issued		326		–			326
Total trade and other receivables		16,210		(1,016	)		15,194

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

An analysis of changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the six months ended June 30, 2023 and June 30, 2022, was the following:

	2022			2023
ECL allowance as of January 1,		(509	)		(1,016	)
Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period		(106	)		(432	)
Amounts written off		31			137
ECL allowance as of June 30,		(584	)		(1,311	)

An analysis of changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the three months ended June 30, 2023 and June 30, 2022, was the following:

	2022			2023
ECL allowance as of April 1,		(553	)		(966	)
Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period		(41	)		(359	)
Amounts written off		10			14
ECL allowance as of June 30,		(584	)		(1,311	)

F-20

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

8.	Cash and cash equivalents

As of June 30, 2023, and December 31, 2022, cash and cash equivalents consisted of the following:

	As of December 31, 2022			As of June 30, 2023
Correspondent accounts with Central Bank of Russia (CBR)		3,025			1,870
Сash with banks and on hand		9,833			12,295
Short-term CBR deposits		27,100			17,300
Other short-term bank deposits		7,507			8,108
Less: Allowance for ECL		(3	)		(3	)
Total cash and cash equivalents		47,462			39,570

The amounts in the table show the maximum exposure to credit risk regarding cash and cash equivalents. The banks the Group holds its cash have low credit risk and are approved by the Board of Directors of the Group on a regular basis.

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

	As of December 31, 2022		As of June 30, 2023
Russian ruble		39,980		28,820
Euro		735		969
US Dollar		2,230		2,346
Chinese Yuan		2,160		2,599
Others		2,357		4,836
Total		47,462		39,570

F-21

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

9.	Other current assets and other current liabilities

9.1 Other current assets

As of June 30, 2023, and December 31, 2022, other current assets consisted of the following:

	As of December 31, 2022			As of June 30, 2023
Other financial assets
Reserves at CBR*		63			129
Option received from ADAH		470			158
Restricted cash accounts and payments		2,015			1,035
Less: Allowance for ECL		(1,404	)		(1,035	)
Total other financial assets		1,144			287
Other non-financial assets
Prepaid expenses		191			178
Tax receivables		288			860
Costs of obtaining a contract		455			495
Other		117			26
Total other current assets		2,195			1,846

Banks are currently required to post mandatory reserves with the CBR to be held in non-interest-bearing accounts. Such mandatory reserves are established by the CBR for liabilities in RUB and in foreign currency according to its monetary policy. The amount is excluded from cash and cash equivalents for the purposes of interim condensed consolidated statement of cash flows and does not have a repayment date.

As of June 30, 2023, cash with banks in the amount of 574 and payments to partners in the amount of 461 were restricted due to the sanctions imposed on certain Russian banks and other restrictions (December 31, 2022 – 2,015). Restricted cash accounts and the related ECL allowance in the amount of 1,035 fall under stage 3 of impairment (December 31, 2022 – 1,404).

9.2 Other current liabilities

As of June 30, 2023, and December 31, 2022, other current liabilities consisted of the following:

	As of December 31, 2022		As of June 30, 2023
Contract liability related to guarantees issued		1,157		1,243
Deferred income		131		137
Tax payable		913		526
Other		67		88
Total other current liabilities		2,268		1,994

F-22

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

10.

Trade and other payables

As of June 30, 2023, and December 31, 2022, the Group's trade and other payables consisted of the following:

	As of December 31, 2022		As of June 30, 2023
Payables to merchants		11,431		8,581
Money remittances and e-wallets accounts payable		8,807		9,282
Deposits received from agents		3,415		2,407
Payables related to marketing activity		5,751		5,720
Commissions payable		485		375
Accrued personnel expenses and related taxes		2,073		1,865
Other payables		1,086		1,510
Total trade and other payables		33,048		29,740

11.

Customer accounts and amounts due to banks

As of June 30, 2023, and December 31, 2022, customer accounts and amounts due to banks consisted of the following:

	As of December 31, 2022		As of June 30, 2023
Legal entities’ current/demand accounts		8,829		11,257
Correspondent accounts of other banks		2,335		3,695
Individuals’ current/demand accounts		39		59
Total customer accounts and amounts due to banks		11,203		15,011

Customer accounts and correspondent accounts of other banks bear interest of up to 7% (2022 – 7%).

12.

Debt

As of June 30, 2023, and December 31, 2022, Group’s debt consisted of the following:

	Credit limit		Effective interest rate	Maturity		As of December 31, 2022		As of June 30, 2023
Non-current interest-bearing debt
Bonds issued		5,000	9.3%		October 10, 2023		3,922		3,745
Total debt							3,922		3,745
Including short-term portion							3,922		3,745

The Group is subject to various covenants regarding its bonds issued. As of June 30, 2023, and December 31, 2022, the Group was in compliance with all covenants stipulated by the public irrevocable offers.

Interest expense regarding Group’s debt for the six months ended June 30, 2023 amounted to 141 (for the six months ended June 30, 2022 – 184).

F-23

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

13.

Investments in associates

The following table illustrates the summarized financial information of the Group’s investment in the associate (see Note 4):

	As of December 31, 2022			As of June 30, 2023
Current assets, including cash and cash equivalents of 124 (2022-82)		750			1,366
Non-current assets		497			571
Current liabilities		(342	)		(1,359	)
Non-current debt		(281	)		(348	)
Equity		624			230
Group’s share in equity 12.6% (2022 - 9.9%)		62			30
Goodwill		241			549
Group’s carrying amount of the investment		303			579

	Six months ended June 30, 2022		Six months ended June 30, 2023
Revenue		–		572
Cost of revenue		–		(440	)
Other income and expenses, net		–		(1,067	)
including personnel expenses		–		(458	)
including depreciation and amortization		–		(44	)
Total net loss		–		(935	)
Group’s share of total net loss		–		(93	)
Gain from contribution to equity by other investors		–		49
Total share of loss of an associate		–		(44	)

F-24

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

14.

Leases

The Group has commercial lease agreements of office buildings. The leases have an average life up to four years. The contracts for a term of less than a year fall under the recognition exemption for being short-term leases. Total lease expense for the six months ended June 30, 2023 recognized under such contracts is 28 (six months ended June 30, 2022 – 14). Future minimum lease rentals under non-cancellable lease commitments for office premises for a term less than one year as of June 30, 2023 are 15 (December 31, 2022 – 25).

For long-term contracts, right-of-use assets and lease liabilities were recognized. Right-of-use assets are included into property and equipment. The change in the balances of Right-of-use assets and Lease liabilities for the six months ended June 30, 2023 was as follows:

	Right-of-use assets Office buildings			Lease liabilities
As of January 1, 2023		455			433
Additions		29			21
Derecognition		(11	)		(11	)
Depreciation		(130	)		–
Interest expense		–			18
Payments		–			(75	)
As of June 30, 2023		343			386
Including short-term portion					302

The change in the balances of Right-of-use assets and Lease liabilities for the six months ended June 30, 2022 was as follows:

	Right-of-use assets Office buildings			Lease liabilities
As of January 1, 2022		653			642
Additions		104			104
Derecognition		(136	)		(155	)
Depreciation		(137	)		–
Interest expense		–			30
Payments		–			(64	)
As of June 30, 2022		484			557
Including short-term portion					263

For the amount of rent expense recognized from short-term leases and variable lease payments for the three and six months ended June 30, 2023 and June 30, 2022 see note 17.

F-25

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

15.

Revenue from contracts with customers

Revenue from contracts with customers for three and six months ended June 30 was as follows:

	Three months ended June 30, 2022		Six months ended June 30, 2022		Three months ended June 30, 2023		Six months ended June 30, 2023
Payment processing fees		10,839		17,787		8,687		17,435
Platform and marketing services related fees		201		436		5,553		11,458
Fees for guarantees issued		334		600		478		895
Cash and settlement service fees		185		460		722		1,238
Other revenue		91		177		205		347
Total revenue from contracts with customers		11,650		19,460		15,645		31,373

For the purposes of interim condensed consolidated statement of cash flows, “Interest income, net” consists of the following:

	Six months ended
	June 30, 2022			June 30, 2023
Interest revenue calculated using the effective interest rate		(3,381	)		(3,708	)
Interest expense classified as part of cost of revenue		241			162
Interest income and expenses from non-operating activities		(72	)		6
Interest income, net, for the purposes of interim condensed consolidated statement of cash flows		(3,212	)		(3,540	)

16.

Cost of revenue

	Three months ended June 30, 2022		Six months ended June 30, 2022		Three months ended June 30, 2023		Six months ended June 30, 2023
Transaction costs		3,260		6,090		3,645		7,309
Platform and marketing services related expenses		29		54		4,630		9,765
Guarantees issued related expenses		141		275		216		400
Interest expense		121		241		84		162
Other expenses		256		559		268		527
Total cost of revenue		3,807		7,219		8,843		18,163

F-26

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

17.

Selling, general and administrative expenses

	Three months ended June 30, 2022		Six months ended June 30, 2022		Three months ended June 30, 2023		Six months ended June 30, 2023
Advertising, client acquisition and related expenses		80		148		116		193
Tax expenses, except for income and payroll taxes		69		146		77		166
Advisory and audit services		190		434		247		490
Rent of premises		25		51		34		68
Expenses related to Tochka platform services		178		311		282		415
IT related services		92		188		138		252
Business travel and representative expenses		66		95		126		222
Other expenses		73		171		164		337
Total selling, general and administrative expenses		773		1,544		1,184		2,143

F-27

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

18.

Income tax

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

Cyprus

The Company is subject to 12.5% corporate income tax applied to its worldwide income. On December 9, 2021, the Minister of Finance presented to parliament the proposed Cyprus budgetary plan for 2022 and envisaged fiscal policy plan for the next three-year period, including an outline of the government’s vision with respect to a possible reform of the Cyprus tax system. Specifically, an increase of the corporate income tax rate from 12.5% to 15% is envisaged, in line with the OECD Inclusive Framework’s Pillar Two agreement. The European Commission’s proposal indicates that the new rules should be transposed into domestic law by EU Member States by December 31, 2023. Once duly adopted, it is proposed to take effect from January 1, 2024.

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

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

The Russian Federation

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

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

Republic of Kazakhstan

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

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

	Three months ended June 30, 2022			Six months ended June 30, 2022			Three months ended June 30, 2023			Six months ended June 30, 2023
Current income tax expense		(1,179	)		(1,893	)		(761	)		(1,860	)
Deferred tax (expense)/benefit		(254	)		(341	)		(193	)		15
Income tax expense for the period		(1,433	)		(2,234	)		(954	)		(1,845	)

F-28

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

19.

Commitments, contingencies and operating risks

Operating environment

The Ukraine crisis, which started in late 2013 and escalated into a major military conflict between Russia and Ukraine in February 2022, has had a devastating effect on Russian relations with the West. In response to the Ukraine crisis, Ukraine, the European Union, the United Kingdom and the United States (as well as numerous other countries such as Switzerland, Japan, Norway, Canada and Australia) have passed a variety of economic sanctions against numerous Russian banks, other companies, private individuals, and whole sectors of the Russian economy, as well as export restrictions and “sectoral” sanctions affecting specified types of transactions with named participants in certain industries, including named Russian financial institutions, and sanctions that prohibit certain significant commercial activities of U.S., UK and EU entities in Russia, as well as in certain specific territories affected by the conflict. While the scope of sanctions has been expanding since 2014, when they were first introduced in response to annexation of Crimea, 2022 saw the imposition of extremely severe measures that have hitherto been unprecedented. Introduction of further economic or trade sanctions remains highly likely as the conflict in Ukraine develops.

Several of Russia’s largest banks, as well as a number of smaller banks are now on the U.S. Department of the Treasury’s Office of Foreign Assets Control’s List of Specially Designated Nationals and Blocked Persons (SDNs), such that their property in the U.S. is blocked and U.S. entities are prohibited from transacting with them, and are also subject to various EU and UK sanctions. Since March 2, 2022, a number of major Russian banks have been banned from the SWIFT system by the EU.

As of the date of these interim condensed consolidated financial statements, the Group is not subject to any sanctions from the US, the UK or the EU. However, further expansion of the sanctions list, the shutdown of the SWIFT system for some Russian banks, the possible introduction of restrictions on the CBR and a number of companies, including customers and counterparties of the Group, may have a significant impact on the activities and financial position of the Group in the future.

In addition, in response to the Ukraine conflict, numerous companies from the U.S., the EU, the UK and other countries have withdrawn from Russia or suspended, wound down or substantially scaled back their Russian operations, stopped dealings with Russian counterparts, or announced plans to do so, due to what ostensibly is a combination of compliance, political, reputational, and other reasons, in a manner that goes significantly beyond the mere compliance with applicable sanctions. It has been observed that businesses from the U.S., the EU, the UK and certain other countries, are exhibiting an overall trend of avoiding any associations with Russia. Such businesses include, among others, software and hardware providers the use of whose products and services is material to the Group’s operations. Accordingly, the Group may face the risk of interruptions to its normal operations due to the need to replace such products and services and integrate alternative solutions on an emergency basis, and its business, financial condition and results of operations could be materially adversely affected as a result. Further, on March 5, 2022, Visa and Mastercard suspended membership of all their Russian members, rendering Russian banks, including Qiwi Bank, unable to issue Visa and Mastercard cards, and Russian consumers unable to execute purchases from most foreign merchants, which has had a limited negative effect on the Group’s payment volumes in 2022 and 2023.

F-29

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

19.

Commitments, contingencies and operating risks (continued)

Operating environment (continued)

In response to the actions of foreign countries and companies described above, the Russian Federation has developed and continues to implement a number of legal, financial and economic measures in order to secure and stabilize the Russian economy, as well as severe retaliatory measures, including significant restrictions on foreign companies executing transactions, repatriating profits and proceeds from sales of businesses, challenging regulatory compliance, increasing taxes, implementing new obligatory or voluntary fees and others. Such measures may be applied to the Group, especially given that its parent company is registered in a country that is considered by the Russian Government to be an “unfriendly jurisdiction”.

On March 15, 2023, QIWI received a notice from the Nasdaq Listing Qualifications Staff that the Staff had determined to delist the Company’s American Depositary Shares from the Nasdaq Global Select Market. On June 6, 2023, upon hearing an appeal from the Company, the Panel granted its request to continue its listing on Nasdaq, subject in particular to the Company timely implementing a restructuring plan to divest its Russian assets. Upon implementation of the restructuring plan, the Group will focus on further growth of its international business both by developing its existing operations and through M&A activities.

Currently, the Board of Directors and management are considering various ways to divest the Russian business from QIWI plc in order to maintain the listing on NASDAQ and protect the interests of all groups of investors. At present, there is still additional work required to carefully and comprehensively evaluate the risks and consequences of potential solutions. Furthermore, the restructuring may require certain approvals from various regulatory bodies in Russia, including the CBR, or other countries. As a result, there is no single option for restructuring which could be considered as highly probable. At the same time, such restructuring may result in substantial losses to be recognized in the consolidated financial statements depending on the limitations imposed by such regulatory bodies, as has been evidenced in practice in a number of recent cases where other foreign companies divested Russian assets.

F-30

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

19.

Commitments, contingencies and operating risks (continued)

Regulatory environment

The Group’s business is impacted by laws and regulations that affect its industry, the number of which has increased significantly in recent years. The Group is subject to a variety of regulations, including those aimed at preventing money laundering and the financing of criminal activity and terrorism, financial services regulations, payment services regulations, consumer protection laws, currency control regulations, advertising laws, betting laws and privacy and data protection laws. As a result, the Group experiences periodic investigations by various regulatory authorities in connection with such laws and regulations, which may sometimes result in the imposition of monetary or other sanctions. An example of such investigations was a routine audit by the CBR that resulted in certain restrictions on operations of Qiwi Bank in July 2023 (see Note 22). Further, these laws and regulations vary significantly from country to country. Many of these laws and regulations are constantly evolving, and are often unclear and inconsistent with other applicable laws and regulations, including across various jurisdictions, making compliance challenging and increasing the Group’s related operating costs and legal risks. If local authorities in Russia or other countries choose to enforce specific interpretations of the applicable legislation that differ from the Group’s, it may be found to be in violation and subject to penalties or other liabilities. This could also limit the Group’s ability to provide some of its services going forward and may increase its cost of doing business.

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

Taxation

Russian and the CIS countries’ tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. There can be no assurance that the Russian Tax Code and CIS countries’ (specifically, Kazakhstan) tax legislation will not be changed in the future in a manner adverse to the stability and predictability of the Russian and CIS countries’ tax system. These factors, together with the potential for state budget deficits, raise the risk of the imposition of additional taxes on the Group. The introduction of new taxes or amendments to current taxation rules may have a substantial impact on the overall amount of the Group’s tax liabilities. An example of such new tax is a new “windfall tax” introduced in August 2023 (see Note 22). Recent events within the Russian Federation and Kazakhstan suggest that the tax authorities are taking a more assertive position in their interpretation of the legislation and assessments and as a result, it is possible that transactions and activities that have not been challenged in the past may be challenged. As such, significant additional taxes, penalties and interest may be assessed. Fiscal periods remain open to review by the authorities in respect of taxes for three calendar years preceding the year of review. Under certain circumstances reviews may cover longer periods. There is no assurance that it would not be required to make substantially larger tax payments in the future, which may adversely affect the Group’s business, financial condition and results of operations.

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

F-31

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

19.

Commitments, contingencies and operating risks (continued)

Risk assessment

The Group’s management believes that its interpretation of the relevant legislation is appropriate and is in accordance with the current industry practice and that the Group’s currency, customs, tax and other regulatory positions will be sustained. However, the interpretations of the relevant authorities could differ and the maximum effect of additional losses, if the authorities were successful in enforcing their different interpretations, could be significant, amount up to RUB 1.4 billion as assessed by the Group as of June 30, 2023 (RUB 2.2 billion as of December 31, 2022).

Legal proceedings

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

Following the disclosure of the restrictions imposed by the CBR on the Group in December 2020, QIWI plc and certain of its current and former executive officers have been named as defendants in a putative class action filed in the United States. These lawsuits allege that the defendants made certain false or misleading statements that were supposedly revealed after the CBR audit results and restrictions were disclosed in December 2020, which the plaintiffs perceive as a violation of Sections 10(b) and 20(a) of the 1934 Securities Exchange Act, and seek damages and other relief based upon such allegations. Management believes that these lawsuits are without merit and intends to defend against them vigorously, and expects to incur certain costs associated with defending against these actions. As of the date of these interim condensed consolidated financial statements there have been no developments regarding the lawsuits, the ultimate outcomes are uncertain and management cannot reasonably predict the timing or outcomes, or estimate the amount of loss, if any, or their effect, if any, on the Group’s financial position. Any negative outcome could result in payments of substantial monetary damages and accordingly the Group’s business could be seriously harmed.

F-32

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

19.

Commitments, contingencies and operating risks (continued)

Guarantees issued

The Group issues financial and performance guarantees to non-related parties for the term of up to five years at market rates.

	December 31, 2022		June 30, 2023
	(Stage 1)		(Stage 1)
Performance guarantees		81,537		79,950
Financial guarantees		1,116		783
Total		82,653		80,733

Financial guarantees are issued to Russian companies that do not have an external credit rating. Performance guarantees are issued to small and medium enterprises within the ROWI segment. Starting January 1, 2023, for the assessment of expected credit losses of the performance guaranties the Group applies the same methodology as for the financial guaranties based on the provisions of IFRS9 “Financial Instruments”. Management does not believe that expected losses from the performance guarantees will exceed the amount of contract liability provided for in these interim condensed consolidated financial statements (see Note 9.2).

Credit related commitments

The primary purpose of these instruments is to ensure that funds are available to a customer as required. Commitments to extend credit represent unused portions of authorizations to extend credit in the form of loans. With respect to credit risk on commitments to extend credit, the Group is potentially exposed to loss in an amount equal to the total unused commitments, if the unused amounts were to be drawn down.

	December 31, 2022			June 30, 2023
	(Stage 1)			(Stage 1)
Unused limits on loans to legal entities		1,618			2,636
Credit loss allowance		(19	)		(60	)

F-33

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

20.

Balances and transactions with related parties

The following table provides the total amount of transactions that have been entered into with related parties during the six months ended June 30, 2023 and 2022, as well as balances with related parties as of June 30, 2023 and December 31, 2022:

	For the six months ended June 30, 2023					As of June 30, 2023
	Sales to/ income from related parties		Purchases/ expenses from related parties			Amounts owed by related parties		Amounts owed to related parties
Associates		11		–			131		(47	)
Key management personnel		–		(269	)		–		(256	)
Other related parties		15		(40	)		77		(30	)

	For the six months ended June 30, 2022					As of December 31, 2022
	Sales to/ income from related parties		Purchases/ expenses from related parties			Amounts owed by related parties		Amounts owed to related parties
Associates		–		–			–		(3	)
Key management personnel		–		(273	)		–		(244	)
Other related parties		–		(6	)		101		(11	)

Benefits of key management and Board of Directors for the six months ended June 30, 2023 comprise of short-term benefits of 173 and benefits under long-term incentive programs of 96 (164 and 69, respectively, and share-based payments of 40 - for the six months ended June 30, 2022).

F-34

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

21.

Financial instruments

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

The fair value of the Group's financial instruments as of June 30, 2023 and December 31, 2022 is presented by type of the financial instrument in the table below:

		As of December 31, 2022				As of June 30, 2023
		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Debt securities	AC		4,155		4,131		5,101		5,004
Debt securities	FVOCI		12,820		12,820		28,699		28,699
Long-term loans	AC		822		822		623		623
Long-term loans	FVPL		21		21		–		–
Option received from ADAH	FVPL		470		470		158		158

Financial liabilities
Bonds issued	AC		3,922		3,887		3,745		3,739

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

•

AC – accounted at amortized cost;

•

FVOCI – accounted at fair value through other comprehensive income;

•

FVPL – accounted at fair value through profit or loss.

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

Debt securities of the Group mostly consist of RUB nominated government and high-quality corporate bonds with interest rate 0.0% - 12.33% and maturity up to January 2037.

Long-term loans generally represent RUB-denominated loans to Russian legal entities and have a maturity up to three years. For the purpose of fair value measurement of these loans the Group uses comparable market interest rates which range between 9 and 38%.

F-35

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

21.

Financial instruments (continued)

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

Fair value measurement using

Quoted prices
in active
markets

Significant
observable
inputs

Significant
unobservable
inputs

Date of valuation

Total

(Level 1)

(Level 2)

(Level 3)

Assets accounted at fair value through profit or loss

Long-term loans

June 30, 2023

–

Option received from ADAH

June 30, 2023

158

–

158

Assets accounted at fair value through other comprehensive income

Debt securities

June 30, 2023

28,699

–

Assets for which fair values are disclosed

Debt securities

June 30, 2023

5,004

–

Long-term loans

June 30, 2023

623

–

623

Liabilities for which fair values are disclosed

Bonds issued

June 30, 2023

3,739

–

Assets accounted at fair value through profit or loss

Long-term loans

December 31, 2022

–

Option received from ADAH

December 31, 2022

470

–

470

Assets accounted at fair value through other comprehensive income

Debt securities

December 31, 2022

12,820

–

Assets for which fair values are disclosed

Debt instruments

December 31, 2022

4,131

–

Long-term loans

December 31, 2022

822

–

822

Liabilities for which fair values are disclosed

Bonds issued

December 31, 2022

3,887

–

There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into or out of Level 3 fair value measurements during the six months ended June 30, 2023.

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

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

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

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

F-36

QIWI plc

Notes to interim condensed consolidated financial statements (Unaudited) (continued)

(in millions of rubles, except when otherwise indicated)

21.

Financial instruments (continued)

Valuation methods and assumptions

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

Long-term fixed-rate loans issued are evaluated by the Group based on parameters such as interest rates, terms of maturity, specific country and industry risk factors and individual creditworthiness of the customer. With regard to the level 3 assessment of fair value of loans issued, management believes that no reasonably possible change in any of the unobservable inputs would be sensitive for the fair value of these assets.

22.

Events after the reporting date

CBR inspection

At the end of July, 2023, during a routine audit of Qiwi Bank, the CBR issued an order to introduce temporary and partial limitations for individuals to withdraw funds from QIWI wallets to bank accounts or make cash withdrawals. As of the date of this condensed consolidated financial statements, Qiwi Bank has already fixed the identified deficiencies and provided the respective evidence to the regulator. Management is currently working closely with the CBR to lift these limitations fully or at least partially. The Group remains financially stable and profitable despite the imposed restrictions. Qiwi Bank has substantial liquidity reserves and maintains the required capital adequacy ratios.

Taxation

In August, 2023, Federal Law 414-FZ was issued in Russia with the effective date of January 1, 2024. It introduces a one-off special tax (windfall tax) which Russian Group subsidiaries are subject to. Although certain terms and aspects of the windfall tax law are unclear and subject to interpretation, it is expected that in case companies will transfer the windfall tax in the form of a voluntary "security payment" to the Russian federal budget in the fourth quarter of 2023 they may reduce the effective rate by up to 50%. The Group expects to utilize the “early payment” option and expects to settle its windfall tax obligation in the fourth quarter 2023 by making a payment of up to RUB 0,5 billion.

In August, 2023, the Russian Federation suspended certain articles of its double taxation treaties with a number of countries, including Cyprus. Consequently, the withholding tax rate in respect of dividends paid to Cyprus is 15% and in respect of interest and royalties, 20%.

F-37

Exhibit 99.3

Acknowledgement Letter of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of QIWI plc

Nicosia, Cyprus

With respect to the registration statements (No. 333-190918 and No. 333-212441) on Form S-8, we acknowledge our awareness of the use therein of our report dated August 16, 2023 related to our review of the unaudited interim condensed consolidated financial information of QIWI plc that is included in its Form 6-K dated August 16, 2023.

Pursuant to Rule 436 under the Securities Act of 1933 (the Act), such report is not considered part of a registration statement prepared or certified by an independent registered public accounting firm, or a report prepared or certified by an independent registered public accounting firm within the meaning of Sections 7 and 11 of the Act.

/s/ JSC “Kept”

Moscow, Russia

August 16, 2023

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