Adyen N.V.

Hello and welcome to Atien's first ever Virtual Capital Markets Day. We're happy that you could join us today. Before I introduce Peter, my name is Hemmo. I'll be your moderator today. I'd just like to talk you through the logistics of the Q&A. There will be two blocks of 30 minutes each for Q&A. And you would really help out the team if you could list your name and the firm or fund you're representing in your question. We will try to get through all of them. During the Q&A session, you'll have an opportunity to unmute yourself to ask your question directly so we have the most interaction we can get in this COVID environment. And with that, I'm really looking forward to today. It's my great honor to hand off now to our co-founder and CEO, Pieter van der Does.

welcome all at our first virtual capital markets day we were looking forward to meet you all face to face but given circumstances we are very happy that we can have a capital markets day in this way Atien is focused on building the company for the long term and today we want to use to explain more about what that means so how we how that translates to the different geographies and how that translates to the different solutions that we're building but before I do that I want to address the COVID situation because it has of course enormous impact on people all around the world on businesses, the economy, but also not yet our employees. So what I hope is that the impact on you and your loved ones is limited and that you stay safe. Also something that's top of mind for us is Arnoud has announced that he will resign. Arnoud is my co-founder and CTO. Originally Arnoud said we are going to do this for maybe one or two years together and then you run the company. That turned out to be true, but it took 14 years before we were at that point. Although I'm sad that Arnoud is leaving, I think the engineering team that we built is very, very strong and I'm very optimistic for the future. So I'm just happy that he stayed so much longer than his original plan. Then I'd like to move over to the agenda for today. Ingo and I will talk about Jan-Willem Wasmann, And now let's, let's go one step back there. There are three angles, how we look at Altium Jan-Willem Wasmann, And that is we look through the people in the culture, how we build this company for the long term. We look at the products that we're building and then how that interacts. So how comes that Jan-Willem Wasmann, How does that come together in scaling the company and you see that back in the presentations because Ingo and I We'll be talking about how we're building, retaining and developing our people. Then we hand over to Kamran, our Chief Operations Officer. Kamran will talk about the geographical expansion, our technology stack and how we're scaling this company. Um, something about Cameron, uh, he has been with us for, uh, uh, proof for almost seven years. And, uh, he joined the boards, uh, the beginning of this year. So I'm very happy that we have such, uh, uh, uh, people on the boards that, which I find very much audience style that built the company themselves. When he started in North America, uh, there was very little there. He's grown it himself and he moved on. to now take operational responsibility. So that's a little bit on the background of Cameroon. Then we hand over to Mariette. Mariette is our chief legal and compliance officer and she will talk about how we do our product development which is merchant driven product development so you need an organizational structure to support that and she will talk about how we have set that up in work streams and solutions a little bit of background on Mariette she almost has been five years with the company and Mariette has also proven to have a lot of traction just as general developing the company, but also more specifically in the regulatory framework, getting banking licenses through the whole process of IPO. And also she joined the board for January this year. So that's a little bit of background on Mariette. And then we're going to move to the solutions. So then we're going to move to the merchant facing solutions that we build. And we do that with Sunil, Derek, Blake, and Martina. And they will explain how we use the single platform to solve complexity in those specific areas that the presentation is about. All the people presenting are people that have been contributors themselves and as they developed they moved on to lead a stream or maybe later a solution. Then we close today with a tour around the world and we do that with Jean from Latam, with Brian from North America and with Warren. What I think is interesting, if you see what we learned over the years in building a company, is it's really important that the people who manage regions have a good understanding how you build a global company. We don't have a single dominant culture. You might think headquarters in the Netherlands, but the Dutch are not the majority in this company. This is such a mix. So people who are really good in developing a region usually also have a more... Jochen Breuer- An exposure to different culture. So if you look at John, he's a Brazilian, but he lived. He studied for a while in Europe and then moved back to Brazil. Jochen Breuer- So has been exposed more to European culture Brian work for years for us at headquarters in the Netherlands, whereas it's an American who lives in San Francisco. And Warren spent half his professional career in the US and half of it in Singapore and lived in various Asian countries and a bit in the US. So these are people who are well aware how you make a company work internationally. So here you got the pictures. And then let me start with people and culture before I hand it over to Ingo. Something that we talk a lot about is the Adyen formula. And the Adyen formula is actually lessons learned in building this company, but also some lessons which we learned in the past. How do you build such a global company and are able to retain speed and build something for the long term? And we wrote it down in eight points and I'll talk through a few of them. Let me start with the first one. We build to benefit all merchants. Why is it so important for us and why did we agree that that's the way we build? It is the vision of long-term. Short-term, you could develop something to onboard a merchant and then you would have to benefit from the revenue of that merchant. But that's only short-term if that makes your technology stack more complex and difficult to maintain. And that if that moves you to a point where at a certain point you lose speed. So because we're there for the long-term, we say we build stuff that benefits all merchants and all merchants means it doesn't necessarily need to be used immediately by all merchants but if we add acquiring malaysia that means that all merchants needing acquiring in that region can use it and we already have some form of demand Also, the second point, good choices to build an ethical and sustainable business. We don't need to work with that company that you're not really proud of just to bump up your numbers because we know we are building for the way longer horizon. So we want partnerships that work for us. And if you see how that works, merchants have always been given us more volume over years because they see we outperform. So we steer away from those short-term gains. How do we build? We say we launch fast and iterate. We have a direct communication with our merchants. Mariette is also going to talk about the merchant-led innovation. If we feel we can help a merchant in a certain way, we quickly test something and then we further build out such a product. And we feel that's a strategy that fits us much better than going for huge releases. Winning is more important than ego. What does that matter? We feel that if you run such an international environment with such a complex product, everybody needs to chip in. So somebody that fits well with the company is somebody who is humble enough to get the satisfaction out of the success in what we're building, maybe commercial success or maybe technical success. And if somebody wants to be really seen, this is not the environment because there are way too many people who help. And that's made it therefore to the formula. Don't hide behind email. Life is complex enough if people work through time zones, through video. So we try to pick up the phone also in these COVID times to just debug our ideas, to understand like, hey, if we would do that, what would be the impact? If we run this product, what would be the impact on the support? Is it easy to maintain or am I overlooking something? So there's a lot of communication going on and we ask people just pick up the phone and discuss. Don't go to formal communication. We go through cultures and quickly that's very slow because people misunderstand. The last one which I want to point out is, this is very similar to Seven by the way, we use different people, we ask people. There's a lot of autonomy, but you do have to work according to the formula. That means that you ask different people for input, different people from different cultural background. Obviously a marketing campaign which works in one region could really not be suitable for another region. but also from different departments so that you get a good feel for what would be the effect of your choices but if you do that there's a lot of autonomy and the last one which i wanted to point out is we talk straight without being rude at the end is founded in the netherlands we are originally a dutch company not so much anymore because we're very very mixed but we stay true to the Frans de Ruiterlnagel, Ph.D.: : Talk straight. That means something else in Singapore, then it means in New York, then it means in San Francisco, and that's okay. But within the cultural bandwidth. We asked people to talk very straight internally and externally because we feel it's a lot quicker. Let's get to the core of what's going on. Let's try to solve stuff. Frans de Ruiterlnagel, Ph.D.: : Um, Then before I hand over to Ingo, I want to talk about a few things that we always said that Adyen is about, the three things, which is why are we here? That's of course, we want to change the payment industry. We don't accept how it is, but we think things can be done better. We want to have fun whilst we do it. If we don't have fun, we wouldn't be having so much attraction, so much traction. We wouldn't be attracting the right people. And thirdly, we help our merchant grow. If we help our merchants grow, that means that they'll give us more volume and that together we can build out this business. Now over to Ingo. And Ingo will share more about how we hire people, how we grow people, and how we retain people. So, Ingo, over to you.

Thanks, Pieter. And it's a great pleasure to talk today about our culture because I'm very proud how we've built the company so far and how we've built a team. And in building the team, hiring is of crucial success or crucial dependent on finding the right people. And Pieter already talked about the formula. So we're looking for people that fit the formula. And what does that exactly mean? Well, we're looking for people that are smart and want to work together to build a company. So we're not looking for people that just find a role and try to be successful just in that role. We want to see people that basically broaden their horizon and really want to see how you can build this fantastic company. We do that by having board interviews. So still in all rounds that we have with candidates, typically six, seven rounds, the final round is with one of us. So one of the six board members, they see each candidate and that's a very good start of the relationship for people that join. Because at the one hand, we can make a good judgment whether this person fits the company. At the other hand, you immediately get to know the people that join the company. And that's, of course, if you want to build a flat organization, very important that you know who is working for you. And this also means that it's a measured growth approach because financially we could hire way quicker than we currently do. But by making sure that we hire in the right pace, that people can actually be onboarded in a good way, we make sure that people feel welcome to the team. So if they join, that there is room to properly onboard them to help them to get up to speed, which is very important. Then the key question, of course, is why do talent stay with us? A very important factor here is that all the talent gets the opportunity to grow with us. Typically, if you look at the team leads that we find in our company, they are promoted from the inside. We almost never hire team leads from the outside. That's a great way. Also, it works the other way around, that if we look for people, and they have team lead experience that we sometimes ask them to join as an individual contributor to make sure that they are really hands-on and make the company successful. Because that's what we have seen, that if you have hands-on people that can also lead a team, that that's the best way to grow. Also, a very important aspect is that we ask people to create their own path. There are so many opportunities in the company that there are no standard patterns. This is not a company where you know within two or three years, I get to the next function. We ask people to look around and come up with ideas that best work for them. By doing that, we create a culture where people really try to understand how they can excel and how they can help to build the culture. So the company culture is a very important reason why people want to stay. The company culture is, I think if I also look to myself, I've been now with the company for over 10 years, the culture is the key reason to work here. It's great to have so many talented people around you that you can learn from each day, and it's very inspiring. How do people grow? Of course, ownership is crucial. Making sure that people really get the opportunity to work on an idea, build it out, and put it into production. We have a young team. If you look at average age, it's around 32 years. As a result, people get a lot of responsibilities at a young age. Of course, that's super cool if you join, work on a product, and see that it goes live. Another reason why people grow with us is that they often or almost always work in cross-functional teams. We're going to talk today about the solutions and the work streams. All those solutions and work streams are cross-functional teams. It's engineering, product, commercial people, By doing that, you learn from the different disciplines and products become better. That's also how individual people grow in the teams. Then the last point is the Adyen way of leading teams. With the growth of the company, we've been looking for a lot of new team leads over the recent years. We ask ourselves the question like, how can we bring them up to speed as soon as they can? Often, they are first-time new team leads, so they have never had the experience to lead a team, and we want to do it in a specific Adyen way. As management team, we spend a lot of time in helping them out, trying to basically tell the key principles how we like to lead the company. And the Adyen way of leading teams is basically the Adyen formula for team leads. And we have seen that that really helps to accelerate the growth of the company. In these COVID times, of course, it's all a bit more difficult. We used to work all together in the office, and now we have to do everything remotely. Working from home is the standard, and of course, where possible, we get in limited groups to the office. But it basically meant that in a few months' time, we completely had to convert all the training and onboarding to online training and onboarding. And we have done that very successfully. The feedback of new joiners over the recent months has been very positive. And of course, as this is going to last a bit longer, we need to continue to prepare ourselves for this situation. Another very important element is the normal course of life principle that we have had within the company for a long time. This basically means that there's a lot of freedom to do what is best for an individual person. If you encounter problems in your personal life, we ask team leads to support their team members and do what is best. So there are no rule books there. And I think also in these COVID times, this made it possible that we had a lot of different solutions for the difficult situations where people were sometimes in. And another very important aspect is the events. We've always organized events as a very important way to interact with our merchants. And we completely migrated all the events to online events. And I think the Capital Markets Day, of course, today is a good example of it. Then a very important part of the formula. Pieter already touched upon it. We include other people to sharpen our ideas. I think it's the key part of our success. If you want to change the industry, you need to have different perspectives. With a group of 90 different nationalities, we have all those perspectives, and it leads to better outcomes. On the ratio male-female, we need to do still better. We are currently at one-third female, two-thirds male, and we continue to invest to make sure that this ratio gets even better in the future. I talked about how important it is to have the right culture and why people like to work here. Of course, if you further want to scale the company, the scalability of the platform is very important. I'm very pleased to hand over to Kamran, who's going to talk about that in the next section.