Transparency andDisclosure Report
2022
Pillar III Report
Adyen N.V.

Transparency and Disclosure Report 2022

1

Contents
Concise risk statement

3

Introduction

5

Scope of consolidation

5

Revised Pillar III disclosure framework

7

Risk management framework and strategy

9

Risk management objectives and policies

9

Governance arrangements

10Disclosures on Pillar I

15

Capital15

Capital requirements

16

Combined buffer requirements

21

Leverage

22

Asset Encumbrance

22

Liquidity & funding

23

Disclosures on Pillar II

25

Internal capital and liquidity adequacy assessment process

25

Interest rate risk in the banking book25

Remuneration

26

Adyen’s remuneration policy

26

Remuneration principles

26

Variable remuneration

26

Identified staff

27

ESG risks

28

Timelines and proportionality

28

Qualitative information

28

Quantitative information

33

Annexes35

Annex OV1 – Overview of total risk exposure amounts

36

Annex KM 1 – Key metrics

37

Annex EU CCyB1 - Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer

39

Annex EU CCyB2 - Amount of institution-specific countercyclical capital buffer

42

Annex EU LI1 - Differences between the accounting scope and the scope of prudential consolidation and mapping of financial statement
categories with regulatory risk categories

43

Annex EU LI2 - Main sources of differences between regulatory exposure amounts and carrying values in financial statements

44

Annex EU LI3 - Outline of the differences in the scopes of consolidation (entity by entity)

45

Annex EU CC1 - Composition of regulatory own funds

46

Annex EU CCA - Main features of regulatory own funds instruments and eligible liabilities instruments

50

Annex EU LR1 - LRSum: Summary reconciliation of accounting assets and leverage ratio exposures52

Annex EU LR2 - LRCom: Leverage ratio common disclosure

53

Annex EU LR3 - LRSpl: Split-up of on balance sheet exposures

56

Annex EU LIQ1 – Quantitative information of LCR

57

Annex EU LIQ2 – Net Stable Funding Ratio

59

Annex EU CR1 - Performing and non-performing exposures and related provisions

61

Adyen Transparency and Disclosure Report 2022

2

Annex EU CR1A - Maturity of exposures

63

Annex EU CR3 - CRM techniques overview: Disclosure of the use of credit risk mitigation techniques

64

Annex EU CR4 - Standardised Approach: Credit risk exposure and CRM effects

65

Annex EU CR5 – Standardized approach: exposures by risk weight66

Annex EU CQ3 - Credit quality of performing and non-performing exposures by past due days

68

Annex EU CQ4 - Quality of non-performing exposures by geography

70

Annex EU CQ5 - Credit quality of loans and advances to non-financial corporations by industry

71

Annex EU MR1 - Market risk under the standardized approach

72

Annex EU IRRBB - Interest rate risks of non-trading book activities

73

Annex EU OR1 - Operational risk own funds requirements and risk-weighted exposure amounts

74

Annex EU AE1 - Encumbered and unencumbered assets

75

Annex EU AE2 - Collateral received and own debt securities issued

76

Annex EU AE3 - Sources of encumbrance

77

Annex EU REM1 - Remuneration awarded for the financial year

78

Annex EU REM4 - Remuneration of 1 million EUR or more per year

79

Annex EU REM5 - Information on remuneration of identified staff

80

Annex ESG 1: Transition risks from counterparty exposure81Adyen Transparency and Disclosure Report 2022

3

Concise risk statement
The Adyen DNA
We are a technology company redefining payments. We work together with over 3,332 people spread across 27
offices around the world. To us, “winning is more important than ego” – we value people for their skills and what theybring to the company, not for their titles. We work with cross-functional teams and empower them to make their own
decisions. Through the setup of the solutions and workstreams with product, technical, and commercial staff, Adyen
can work closely with its merchants and quickly address their evolving needs. We think function beats form, and oureffort toward our goal of helping our merchants grow is singular.

Description of Business Activities
The Adyen platform integrates the full payments stack (gateway, risk management, processing, acquiring andsettlement) with a common back-end infrastructure for authorizing payments across its merchants' sales channels aswell as offering feature-rich APIs. This integrated platform allows for the delivery of products and services on a global
scale with local capabilities, directly connecting merchants to Visa, Mastercard and many other payment methods,
and across sales channels, including its merchants' online, mobile and POS channels, while providing a high level ofreliability, security, performance and data insights. In 2022, Adyen continued on its path of offering an innovative suiteof financial products through piloting cash advances and business bank accounts on the Adyen platform. Alongsideembedded payments, the suite aims to power the future of financial services by enabling marketplaces to deliver
superior financial experiences to small and medium-sized businesses.

Risk management
Adyen recognizes that there are risks associated with achieving its strategy and business objectives. Managing these1risks is an essential part of doing business. Adyen has adopted a uniform and systematic company-wide approach for
managing risks. Adyen's integral risk management framework is based on the Enterprise Risk Management (ERM)
model as issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2017.

CapitalIn Pillar I, Adyen uses the standardized approach for credit and market risk categories, and the Basic Indicator
Approach for operational risk to determine its minimum regulatory capital requirements. Resulting from Adyen’s
business model, operational risk is the largest risk category in terms of risk weighted assets. The total risk exposureamount at 31 December 2022 was EUR 3,422 million.
The capital requirements need to be covered by sufficient own funds. Adyen’s own funds consist fully of CET1 capital,
2
which was EUR 1,972 million at 31 December 2022. This resulted in a CET1 capital ratio of 57.6%.

Leverage
Adyen’s leverage ratio was 26.3% at year-end 2022, which is well above the requirement of 3%.

Liquidity Coverage Ratio (LCR)
The Liquidity Coverage Ratio of Adyen was 2,069% at the end of 2022, well above the regulatory threshold of 100%.
1Art. 435(1)(e)(f) CRR.
Upon formal confirmation, Adyen's net profit for H2 2022 (EUR 282 million) may be included in its CET1 calculation. At that point, Adyen's CET1 capital becomes EUR 2,254
million, resulting in a CET1 capital ratio of 65.9%.
2

Transparency and Disclosure Report 2022

Net Stable Funding Ratio (NSFR)At year-end 2022 Adyen’s NSFR was 273.7%, well above the regulatory threshold of 100%.

Declaration of the Management Board
The Management Board of Adyen declares that the risk management arrangements of Adyen are adequate withregards to Adyen’s risk profile and strategy. The development of Adyen’s risk profile is in line with the risk tolerances
set by the Management Board.

4Adyen Transparency and Disclosure Report 2022

5

Introduction
This document presents the consolidated Transparency and Disclosure Report 2022 (Pillar III report) of Adyen N.V.
3
(Adyen) as per 31 December 2022.
4

As a ‘less significant institution’ based in the European Union, Adyen operates under the Capital Requirements
Directive IV (CRD IV) and Capital Requirements Regulation (CRR), including the recent amendments to this framework
56
as documented in CRR II and CRD V . This framework is based on a three-pillars concept:• Pillar I – Minimum capital requirements• Pillar II – Supervisory review• Pillar III – Market disclosures
In Pillar I, the capital requirements are calculated on the basis of standard components of three categories of risk thatan institution faces: credit risk, market risk and operational risk. These capital requirements need to be covered bysufficient own funds. Adyen uses the standardized approach for credit and market risk categories, and the Basic
Indicator Approach for operational risk to determine its minimum regulatory capital requirements.
In Pillar II, the supervisor reviews the viability of Adyen and its ability to meet the reporting requirements. This
Supervisory Review and Evaluation Process (SREP) comprises four components:• Business Model Assessment (BMA)• Internal governance and institution-wide control assessment• Internal Capital Adequacy Assessment Process (ICAAP)• Internal Liquidity Adequacy Assessment Process (ILAAP)As Pillar II inherently implies supervisory judgment, it is a more principle-based standard that addresses institutionspecific risks and details capitalization against these risks. The capital requirements from Pillar II should be
proportionate to the risk profile of Adyen, and as such also reflect the volatility to risks under adverse and changing
business conditions.
The Pillar III disclosure framework seeks to promote market discipline through regulatory disclosure requirements.
Pursuant to Part Eight of the CRR, Adyen is required to publicly disclose information regarding, amongst others, its
risk profile, risk management and capital adequacy. Adyen discloses this information by means of this Pillar III report.
The Pillar III disclosures have a reference date of 31 December 2022.
The content of this Pillar III report meets all the requirements laid down in CRR and corresponding delegatedregulations and guidelines. This report has not been audited by Adyen’s external auditor.

Scope of consolidation
As an EU parent institution, Adyen N.V. is required to publish a consolidated Pillar III report. Adyen reports its
prudential requirements both on a consolidated as well as on a stand-alone basis. Its subsidiaries are only included inits consolidated reporting. Adyen’s prudential scope of consolidation does not deviate from its IFRS scope of
consolidation. Adyen N.V. is a licensed Credit Institution by De Nederlandsche Bank (the Dutch Central Bank) andregistered in the Netherlands under company number 34259528. The Credit Institution license includes the ability toprovide cross-border services in the EEA. Adyen N.V. directly or indirectly owns 100% of the shares of, and therefore
controls all entities included in the consolidated financial statements. This means all branches, representative offices
and subsidiaries are fully consolidated.
Adyen has offices in the Netherlands, Brazil, Singapore, United Kingdom, Canada, Australia, Hong Kong, Mexico,
China, New Zealand, Malaysia, India, Japan and United Arab Emirates with branches in Germany, France, Sweden,
and the United States, and representative offices in Belgium, Poland, Italy, and Spain. The address of the Adyen N.V.
registered office is Simon Carmiggeltstraat 6-50, 5th floor, 1011DJ Amsterdam, the Netherlands. Table 1 and 2
3

Art. 436(a) CRR.
Art. 441 CRR.
Regulation (EU) No 876/2019 (‘CRR II’)
6
Amended Directive 2013/36/EU
45

Adyen Transparency and Disclosure Report 2022

6

provide an overview of all subsidiaries, branches and representative offices of Adyen N.V. and all subsidiaries of Adyen
7International B.V.
Name

Legal seat

Direct ownership
percentage

Adyen N.V. - Subsidiaries
Adyen International B.V.

Amsterdam, The Netherlands

100%

Adyen do Brasil Instituicao de Pagamento Ltda

São Paulo, Brazil

87.1.%

Adyen Mexico, S.A. de C.V.

Mexico City, Mexico

1%

Adyen India Technology Services Private Limited

New Delhi, India

1%

Adyen N.V. - Branches
Adyen N.V., German branch

Berlin, Germany

Adyen France

Paris, France

Adyen Nordic Bank Fillial

Stockholm, Sweden

Adyen N.V. – San Francisco Branch

San Francisco, CA, USA

Adyen N.V. – Representative offices
Adyen N.V., Belgian Representative Office

Brussels, Belgium

Adyen N.V., Italian Representative Office

Rome, Italy

Adyen N.V., Spain Representative Office

Madrid, Spain

Adyen N.V., Polish Representative Office

Warsaw, Poland

Table 1
Adyen N.V. 's branches, representative offices and direct subsidiaries with their corresponding legal seat8

Name

Legal seat

Direct and indirectownership percentage

Adyen International B.V. - Subsidiaries
Adyen Services Inc.

Dover, DE, USA

100%

Adyen do Brasil Instituicao de Pagamento Ltda

São Paulo, Brazil

12.9%

Adyen Singapore PTE. LTD.

Singapore, Singapore

100%

Adyen UK Ltd

London, United Kingdom

100%

Adyen Hong Kong Ltd

Hong Kong, Hong Kong SAR

100%

Adyen Australia PTY Limited

Sydney, Australia

100%

Adyen Canada Ltd.

Saint John, Canada

100%

Adyen Korea Chusik Hoesa (in liquidation)

Seoul, Republic of Korea

100%

Adyen Mexico, S.A. de C.V.

Mexico City, Mexico99%

Adyen (China) Software Technology Co. Ltd.

Shanghai, China

100%

Adyen New Zealand Ltd.

Auckland, New Zealand

100%

Adyen Malaysia Sdn. Bhd

Kuala Lumpur, Malaysia

100%

Adyen India Technology Services Private Limited

New Delhi, India

99%

Adyen Japan K.K.

Tokyo, Japan100%

Adyen MEA FZ-LLC

Dubai, United Arab Emirates

100%

Adyen Middle East Limited

Dubai, United Arab Emirates

100%

Table 2Adyen International B.V.'s subsidiaries, their legal seat and ownership percentage

78Art. 436(b) CRR.
Adyen N.V. directly or indirectly owns 100% of the shares of, and therefore controls, all entities included in the consolidated financial statements.

Adyen Transparency and Disclosure Report 2022

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Revised Pillar III disclosure framework
The Basel Committee on Banking Supervision (BCBS) announced in 2014 its aim to revise and consolidate the Pillar III
disclosure requirements, and as such bundle the previously scattered instructions in an “all-inclusive Implementing
Technical Standard”. This started as a two-phase program, but was extended with a third phase in 2017 to include
disclosure requirements arising from the ongoing finalization of the Basel III reforms. The previously existing Pillar III
disclosure requirements are superseded.
In order to be legally binding, the Revised Pillar III Framework templates were transposed into EU requirements. Article
434a CRR mandates the EBA to develop disclosure templates and instructions for disclosure requirements under
Titles II and III of Part Eight CRR. Comprehensive Implementing Technical Standards on disclosure were developed asa result as per ITS 2021/637. This ITS includes most new disclosure requirements per updated CRR, with the mostnotable exception being related to Environmental, Social and Governance (ESG) risk prudential disclosures. On 24
January 2022 EBA published its final draft ITS/2022/01 on ESG risks disclosures under the Pillar 3 framework thatspecifies uniform formats and associated instructions for the disclosure of this information. This requirement became
effective from June 2022.
In table 3, Adyen’s disclosures within this Pillar III report are linked to the respective provisions of Part Eight of the
CRR. It also references the relevant (fixed format) disclosure templates for Adyen as per the ITS. Adyen has chosen toaddress most relevant flexible format templates in the report text itself. This text can be found in the referenced
section’s pages in table 3. Note that not all ITS templates are relevant to Adyen as a result of its business model.
Annexes(EBA disclosure
templates)

ArticleSubject

Reference

Page

Article 435

Risk management objectives andpolicies

Concise risk statement
Risk management framework and strategy

p. 4
p. 9-14

Article 436

Scope of application

Scope of consolidation

p. 5

EU LI1EU LI2EU LI3

Article 437

Own funds

Capitalp. 15

EU CC1
EU CCA

Article 437a

Own funds and eligible liabilities

Not applicable

Article 438

Own funds and RWA

Capital requirements
Internal capital adequacy assessment process

p. 15-19
p. 22

EU OV1

Article 439

Exposure to counterparty creditrisk

Not applicable

Article 440

Countercyclical capital buffers

Capital buffers

p. 20

EU CCyB1
EU CCyB2

Article 441

Indicators of global systemic
importanceNot applicable

Article 442

Credit risk adjustments andcredit risk quality

Credit risk adjustments

p. 16-17

EU CR1EU CR1-A
EU CQ3EU CQ4EU CQ5

Article 443

Asset encumbrance

Asset encumbrance

p. 20

EU AE1
EU AE2
EU AE3

Article 444

Use of ECAI’s for credit risk
standardized approach

Use of External Credit Assessment Institutions

p. 17

Article 445

Exposure to market risk

Market risk

p. 18

EU MR1

Article 446

Operational risk

Operational risk

p. 19-20

EU OR1

Article 447

Disclosure of key metrics

Disclosure of key metrics

p. 4
p. 15-21

EU KM1

Article 448

Disclosure of exposures tointerest rate risk on positions notheld in the trading bookInterest rate risk in the banking bookp. 20

Article 449

Exposure to securitization
positionsNot applicableAdyen Transparency and Disclosure Report 2022

ArticleArticle 449a

Subject

8

Reference

Page

Annexes(EBA disclosure
templates)

ESG risksp. 23

Template 1

Not yet applicable (starting from 2024 onwards)

Template 3
Template 6
Template 7
Template 8
Template 9

Not applicable

Template 2
Template 4
Template 5
Template 10

ESG risks

Article 450

Remuneration policy

Remuneration

p. 23-24

EU REM1
EU REM4
EU REM5

Article 451

Leverage

Leveragep. 20

EU LR1EU LR2EU LR3

Article 451a

Liquidity
Funding

LCR
NSFR

p.20-21

EU LIQ1
EU LIQ2

Article 452

Use of the IRB approach to creditrisk

Not applicable

Article 453

Use of credit risk mitigation
techniques

Credit risk mitigation

p. 16

EU CR3
EU CR4
EU CR5

Article 454

Use of the advanced
measurement approaches tooperational risk

Not applicable

Article 455

Use of internal market risk
modelsNot applicable

Table 3Mapping of applicable CRR Articles and disclosure templates to this document

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Risk management
framework and strategy
Adyen recognizes that risks are associated with achieving its strategy and business objectives. Managing these risks isan essential part of doing business. This chapter describes Adyen’s uniform and systematic company-wide approachfor managing risks. In addition, it lays down Adyen’s risk governance, which sets the tone for, reinforces theimportance of, and establishes oversight responsibilities for risk management.

Risk management objectives and policies
9

Adyen's integral risk management framework is based on the Enterprise Risk Management (ERM) model as issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2017. The integral risk
management framework structures the risk management activities within Adyen with a view of identifying, assessing,managing, monitoring and reporting risks in a uniform manner.

Three lines model
In line with the European Banking Authority (EBA) Guidelines on Internal Governance and the publication of theInstitute of Internal Auditors (IIA), Adyen has adopted the three lines model which reflects the segregation between
operations (first line management), the risk management and compliance functions (second line), and the
independent internal audit function (third line). The first line management designs, implements, executes and monitors
the control activities to manage performance and the risks taken to achieve Adyen's objectives. The second line risk
and compliance functions provide guidance on risk management requirements, and independently evaluate
adherence to defined standards. The third line internal audit function provides independent assurance on theeffectiveness of risk management, including control activities, by performing audits. The head of internal audit reports
directly to the chairman of the Audit and Risk Committee, which provides an indirect line of reporting to the CEO.
Adyen follows the EBA guidelines on internal governance and has implemented structural measures and controls to
realize the appropriate authority, independence and statute of its risk management functions.
During 2022, the second and third-line functions have continued to add resources in line with the overall growth of theorganization as well as the broadening of its services offering and corresponding risk profile.

Strategy and objective setting
Risk management, strategy and objective-setting work together in the strategic planning process. Operational
objectives put strategy into practice while serving as a basis for identifying, assessing, and responding to risk. Adyen's
risk appetite is established and aligned with its strategy.

Risk appetite
Adyen has translated its view on all of its main risks into risk appetite statements. Risk appetite is the amount of risk
Adyen is willing to accept in pursuit of its objectives. It defines the level of risk at which appropriate actions are needed
to reduce risk to an acceptable level. Risk appetite is therefore not static, nor are the risk types for which internal risk
limits and risk statements are set. The risk appetite statements on financial and operational risks are updated given the
introduction of Embedded Financial Products in 2022.
The risk appetite statements for 2022 were approved by the Management Board and Supervisory Board. Adyen’s
overall risk appetite is best reflected in the phrase that it wants to build an ethical and sustainable business, whilst
being risk aware and not unduly risk averse. Adyen accepts that in order to achieve its strategic objectives it may
consume some amounts of capital while investing in new assets, people and processes. In pursuance of its strategic
objectives Adyen furthermore values a solid financial and capital outlook. Both capital and leverage should therefore
be at a comfortable level above the regulatory requirements.

9Art. 435(1) CRR.

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Risk assessment and control activities
Adyen performs a top-down company-wide risk assessment on (at minimum) an annual basis, which includes theidentification of key risks that could potentially affect the strategy and business objectives. The purpose hereof is to
identify which risks could potentially affect the organization over time, both individually and collectively, in order tofocus attention on the most important threats and opportunities. Following EBA guidelines, the key risks are
categorized as follows:• Strategic and business risk
• Operational risk (including technology and integrity risks)• Financial risk (including credit risk, market risk, liquidity and funding risk)
For a more detailed description of the key risks as identified and assessed by Adyen, refer to the Section "Risk Factors"
within the Annual Report 2022. During the year Adyen also undertakes a multitude of specific, local and/or focusedrisk analyses and assessments that complement the company-wide risk assessments. An example of a focused risk
analysis is the systematic integrity risk analysis (SIRA) which is performed at least annually.
Adyen has established a control environment that provides an appropriate foundation for achieving the company’s
objectives and effectively mitigating risks. Control activities are the policies and procedures that help ensure risks are
mitigated and Adyen's objectives are achieved. Adyen uses COSO’s internal control integrated framework as areference for its design, implementation and evaluation of control activities as part of a system of internal control.
Adyen has established a resilience framework, in which Adyen plans and organizes for its course of business undervarious operational and financial conditions. This is how topics such as business continuity management and financial
recovery are addressed. The resilience framework contains a number of focused contingency plans, such that theseprovide easily accessible and practical guidance when needed. During the COVID-19 pandemic, the business
continuity protocols allowed employees to continue their day-to-day activities while adjusting to the new normal.
Adyen’s staff was fully equipped to work remotely, and is able to do so without impact on Adyen’s ability to process
payments. The business continuity response and recovery plans have been updated with, amongst others, the lessons
learned from the COVID-19 lockdowns and risk self-assessments.

Review and revision
By reviewing its performance, Adyen evaluates how well the risk management components are functioning over time.
The Risk Committee plays a key role in supporting the Management Board with overseeing the effectiveness ofAdyen’s risk management. It carries out this role by monitoring Adyen's risk profile against the risk appetite, which isan ongoing and iterative process supported by the risk management function. A framework of risk limits and early
warning indicators supports this process. Any material risk limit breach that places Adyen at risk of exceeding its risk
appetite and, in particular, of putting at risk Adyen’s financial health, is escalated promptly to the Management Board.
Combinations of ongoing and separate evaluations are used to determine if the components of internal control arepresent and functioning effectively. The ongoing evaluations are built into Adyen’s business processes and provide
timely information. The separate evaluations, including independent management testing, are conducted periodicallyand may vary in scope and frequency depending on the risks and effectiveness of these ongoing evaluations. Any
identified deficiencies are discussed within the Risk Committee and reported to the Management Board along with10
relevant findings, recommendations and remediation plans.

Governance arrangements
Adyen’s governance sets the tone, reinforces the importance of, and establishes oversight responsibilities for risk
management. Adyen has established a governance which is consistent with the size, complexity and risk profile of thecompany. The risk governance structure is consistent for all risks relevant to Adyen, with specialist committees
supporting the Management Board. The Compliance Committee monitors Adyen’s integrity risks, the Disclosure
Committee is responsible for reviewing Adyen’s financial information for compliance with legal and regulatory
requirements prior to publication, the Merchant Risk Committee monitors the financial risks related to merchants andthe Risk Committee monitors all risk categories. The second line risk management function for (non-) financial risks(including market, credit and operational risk) is fulfilled by the Corporate Risk team.

10

Art. 435(2)(e) CRR.

Adyen Transparency and Disclosure Report 2022

1111

Adyen’s governance is reflected in internal rules and regulations, including the Articles of Association (Statuten), theManagement Board By-Laws, the Supervisory Board By-Laws and the Terms of reference of our Supervisory
Board committees.
Figure 1 below outlines Adyen’s organizational structure and relation between the Supervisory Board and its
committees, the Management Board and the rest of the company.

Figure 1
Adyen's organizational structure per year-end 2022

Board composition and directorships
Adyen maintains a two-tier board structure consisting of a Management Board and a Supervisory Board. The
Management Board is responsible for the day-to-day management, which includes, among other things, formulating
Adyen’s strategy and policies and setting and achieving Adyen’s objectives. The Supervisory Board supervises andadvises the Management Board. Each board is accountable to the General Meeting for the performance of its duties.

Management Board
In performing their duties, the Managing Directors are required to be guided by the best interests of Adyen and thebusiness connected thereto, taking into consideration the interests of Adyen’s stakeholders. This is documented in
Adyen’s Conflict of Interest Policy.
Adyen’s Management Board is composed of the following six members:
Pieter van der Does is the CEO of Adyen and has been a member of the Management Board since 2007. He spent over
15 years working in the payments industry. Before co-founding Adyen in 2006, Pieter van der Does was CCO at Bibit, apioneering international payment service provider, acquired by the Royal Bank of Scotland in 2004. Pieter serves as a
Supervisory Board member of Écart Invest B.V.

11

Art. 435(2) CRR.

Adyen Transparency and Disclosure Report 2022

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Roelant Prins is the CCO of Adyen and has been a member of the Management Board since 2009. Roelant Prins is
responsible for the commercial activities of Adyen. After starting his career as a consultant, he moved to the online
payments industry early 2000. Throughout the years, Roelant has held various international management roles in sales
and business development for companies providing payment solutions to international e-commerce businesses.
Ingo Uytdehaage is the CFO of Adyen and has been a member of the Management Board since 2011. He has earned
his MBA in accounting and finance from Maastricht University and studied supply chain management andorganizational behavior at the Aarhus Business School in Denmark. Additionally, Ingo Uytdehaage obtained his CPA at
the Vrije Universiteit in Amsterdam. Prior to joining Adyen, Ingo was a Finance Director at KPN. Currently, he isMember of the Non-Executive Board and Chair of the Audit & Risk Committee of Wise plc.
Kamran Zaki was appointed as the COO of Adyen and a member of the Management Board per January 1, 2020.
Kamran Zaki is responsible for the operations to customers that make use of Adyen’s platform. Previously, Kamran
was the President of Adyen North America since 2014, and in this capacity, he oversaw all North American operations,
including sales, marketing, product development and customer support. Prior to Adyen, Kamran was the Head of
Global Payments at Netflix where he helped expanding the Netflix streaming service. Previously, he spent seven years
at PayPal. During his tenure there, he headed up payments teams across Europe, North America and Emerging
Markets (i.e. LatAm, Middle East and Africa).
Mariëtte Swart was appointed as the CLCO of Adyen and a member of the Management Board per January 1, 2020.
Before joining the board, Mariëtte Swart served as Adyen’s General Counsel and Company Secretary since 2015. She
has built the legal team from the ground up, ensuring that the legal function effectively supports the business at a
strategic and operational level. Prior to Adyen, Mariëtte worked at an international law firm where she gained a vast
experience in global financial services, helping companies with products in payments, debt and equity solutions, M&A
and financial markets.
Alexander Matthey is the CTO of Adyen and has been appointed as a member of the Management Board as of 1
January 2021. Prior Alexander Matthey had been fulfilling the position of EVP Technology at Adyen, leading multiple
technical teams. In this capacity, as well as his position in the engineering leadership team, he gained knowledge inscaling and building teams. Before joining Adyen in 2015, Alexander was Vice-President and CTO of Glossybox, where
he gained experience in managing and leading the technology department.
NameYear of birth

Nationality

GenderPosition

Current
appointment date

Term

Pieter Willem van der Does

1969

NL

Male

CEO

June 2022

June 2026

Roelant Prins

1975

NL

Male

CCO

June 2022

June 2026

Ingo Jeroen Uytdehaage

1973

NL

Male

CFO

June 2021

June 2025

Kamran Zaki

1973

US

Male

COO

January 2020

January 2024Mariëtte Bianca Swart

1980

NL

Female

CLCO

January 2020

January 2024

Alexander Matthey

1981

DE

Male

CTO

February 2021

February 2025

Table 4Composition of the Management Board

At 14 December 2022 it was announced that Brooke Nayden will join the Management Board as Chief Human
Resources Officer (CHRO). At 8 February 2023, it was announced that Ingo Uytdehaage will take the position of coCEO, Ethan Tandowsky will join the Management Board as CFO and Kamran Zaki will leave Adyen. The appointmentof Ethan Tandowsky and Brooke Nayden as Management Board member is subject to regulatory approval by the
Dutch Central Bank, followed by approval from shareholders during Adyen’s 2023 Annual General Meeting. Please
note these changes in composition will logically come with a re-allocation of responsibilities, which are not yet
reflected in figure 1 above that provides the view per 31 December 2022.

Supervisory Board
The Supervisory Board supervises the conduct and policies of the Management Board and the general course of
affairs of Adyen and its business. The Supervisory Board also provides advice to the Management Board. In
performing their duties, the members of the Supervisory Board are required to be guided by the interests of Adyen,
which includes the interests of the business connected to it. These interests are driven by Adyen’s focus on long-termvalue creation and the way in which this is implemented in Adyen’s strategy and culture.
Throughout the year, four Supervisory Directors — Piero Overmars (Chair), Delfin Rueda, Pamela Joseph and Caoimhe
Keogan— were considered to be independent from the company. One Supervisory Board Director, Joep van Beurden,Adyen Transparency and Disclosure Report 2022

13

has acted as an advisor to Adyen in the years preceding his appointment in 2017, and is therefore considered not to be
independent. The Supervisory Board is, as a body, independent.
Adyen’s Supervisory Board is composed of the following five members.
Piero Overmars serves as a member of the Management Board of Stichting Continuïteit PostNL and as a member of
the Supervisory Board of Dura Vermeer Group N.V. and Dutch Organic International Trade B.V. Next to this, he serves
as Chairman of the Supervisory Board of Land Life Company B.V. Previously, he served as a member of theManagement Board of Randstad Beheer B.V. and was Chairman of the Supervisory Boards of Nutreco and SNS Reaal,
and member of the Supervisory Board of Amsterdam UMC. He also served as President of the Nyenrode Foundation,
following an extensive career at ABN Amro that culminated in a Board Member position. Piero Overmars holds an
MBA from Nyenrode Business University.
Delfin Rueda Arroyo is CFO and General Partner of Mundi Ventures, and serves as non-executive director of Allfunds
Bank and Allfunds Group. Previously, he served as CFO and Vice-Chair of the Executive Board and Management
Board of NN Group and ING Insurance, following an extensive career at Atradius, JP Morgan, UBS, Salomon Brothersand Andersen Consulting. Delfin Rueda Arroyo holds a master degree in Economic Analysis and Quantitative
Economics from the Complutense University of Madrid (Spain). He also holds an MBA from the Wharton School,
University of Pennsylvania (USA).
Joep van Beurden is CEO and member of the Executive Board of Kendrion N.V. and member of the Supervisory Boardof the Twente University of Technology (the Netherlands). In addition to these positions, Joep serves as a member ofthe Advisory Board of PlantLab. Previously, he served as CEO of CSR Plc. (UK) and NexWave Inc. (France), following acareer at Royal Dutch Shell, McKinsey, Philips and Canesta Inc. Joep van Beurden holds a degree in Applied Physics
from Twente University of Technology.
Pamela Joseph is CEO and member of the Management Board of Xplor Technologies, holds a position as Chair of theBoard of Directors of TransUnion and is a non-executive member in the Board of Directors of Paychex. In addition tothese positions, Pamela serves as Operating Partner at Advent International. Previously, she served U.S. Bank corp.
Payment Services as a Vice-Chairman, and prior to that Elavon as President and COO. She started her career at Wells
Fargo Bank and VISA International. She holds a degree in Business Administration from the University of Illinois (USA).
Caoimhe Keogan serves as CPO (Chief People Officer) for Aveva Group plc. Previously, she served as Chief People
Officer for Moneysupermarket Group plc, and as SVP People, Places & Community at SoundCloud. Prior to theseroles, she was Senior HR Business Partner at Google. Caoimhe Keogan holds a degree in Occupational Psychology
from Queen’s University Belfast (UK).

Name

Year of birth

Nationality

GenderPosition

Current appointment date

Term

Piero Overmars

1964

NL

Male

ChairmanJanuary 2021

January 2025

Delfin Rueda Arroyo

1964

SP

Male

MemberJanuary 2022

January 2026

Joep van Beurden

1960

NL

Male

MemberJanuary 2020

January 2024

Pamela Joseph

1959

US

FemaleMemberMay 2019

May 2023

Caoimhe Keogan

1978

IE

FemaleMemberFebruary 2021

February 2025

Table 5Composition of the Supervisory Board

Board recruitment and diversity policy
The Articles of Association provide that the Management Board shall consist of two or more members and that theSupervisory Board determines the exact number (more than two) of Managing Directors after consultation with theManagement Board.
The General Meeting appoints Managing Directors upon a nomination by the Supervisory Board in accordance with
the Articles of Association. The Supervisory Board shall make one or more nominations to the General Meeting in casea Managing Director is to be appointed.
In the event that the Supervisory Board has made a nomination, the resolution of the General Meeting to appoint suchnominee shall be adopted by an absolute majority of the votes cast. A resolution of the General Meeting to appoint aManaging Director other than in accordance with a nomination of the Supervisory Board, but in accordance with theagenda for such General Meeting, shall require a majority of two thirds of the votes cast representing more than half ofAdyen Transparency and Disclosure Report 2022

14

the Company's issued share capital. However, the General Meeting may at its discretion appoint a Managing Director
other than upon the nomination of the Supervisory Board, provided that a proposal to appoint such other person has
been put on the agenda of the relevant General Meeting.
Adyen is a licensed credit institution, which means that any appointment of a Managing Director must be approved by
DNB. In connection with its approval procedure, DNB will test the proposed new Managing Director on integrity(betrouwbaarheid) and suitability (geschiktheid).
The Supervisory Board aims for a balance in its composition with respect to age, experience and affinity with thenature and culture of the business of Adyen in all countries where it is active.

Risk management committees
The Management Board has instituted committees to support with its risk management oversight: the Compliance
Committee, the Disclosure Committee, the Merchant Risk Committee, and the Risk Committee. The Compliance
Committee monitors Adyen’s integrity and compliance risks, the Disclosure Committee is responsible for reviewing
Adyen's financial information for compliance with legal and regulatory requirements prior to publication, the Merchant
Risk Committee monitors the merchants’ potential liability (MPL) risk and the Risk Committee monitors the overall risk
profile.
The Risk Committee and the Compliance Committee report their observations, recommendations and deliberations
on findings regarding compliance, risk management and internal control at least quarterly to the Management Board.
The Risk Committee held five meetings during 2022. The Management Board reviews reports from control
assessments made on the operating effectiveness of systems and controls, acts on recommendations from the Risk
and Compliance Committees and decides on corrective actions. The Management Board reports to the Audit and Risk
Committee on the effectiveness of Adyen's risk management and internal control systems during the quarterly Audit
and Risk Committee meetings.

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Disclosures on Pillar I
Within the CRR and CRD framework, Pillar I lays down the minimum capital requirements for the main components ofthe major risk types that a traditional bank faces. The minimum regulatory capital requirement for Adyen's Pillar 1
consists of credit, market and operational risk as these are the relevant types of risk to which Adyen is exposed.
As at 31 December 2022, Adyen’s total risk exposure amount is EUR 3,422 million. This results in a Pillar I capitalrequirement of EUR 273.8 million. When including the capital conservation buffer and countercyclical capital buffer,
the Pillar 1 capital requirement equals EUR 361.0 million. Adyen’s CET1 capital at year-end totals to EUR 1,972 million(2021: EUR 1,676 million). The increase in total own funds in 2022 mainly relates to the addition of consolidated net
profits (full year 2021 and H1 2022). Upon formal confirmation, Adyen's H2 2022 net profit (EUR 282 million) may be
included in its CET1 calculation. At that point, Adyen's CET1 capital becomes EUR 2,254 million.
Adyen is also subject to leverage and liquidity requirements as well as reporting requirements on asset encumbrance.
The following section provides more detail on Adyen’s requirements as laid down in Pillar I.

Capital12

For regulatory purposes, capital is defined as own funds, which can be divided in Common Equity Tier 1 (CET1),
Additional Tier 1 and Tier 2. Adyen only holds Common Equity Tier 1 capital.
Common Equity Tier 1 capital comprises IFRS equity, with the inclusion of prescribed prudential filters anddeductions. Table 6 provides a reconciliation of Adyen’s own funds with Adyen’s capital according to the IFRS
13
definition. Annex EU CC1, describes the main features of this Common Equity Tier 1 capital.
CET1 capital as at December 31, 2022
IFRS equity

2,412,119

Of which: share premium

352,399

Of which: paid up capital310

Of which: retained earnings

1,902,858

Of which: other reserves

156,553

Net profit not included in CET1 capital (H2 2022 not yet eligible)(282,003)

Adjustments due to prudential filters and deductions(157,925)

Intangible assets(8,140)

DTA that rely on future profitability and do not arise from temporary differences(124,162)

Warrant reserve(25,575)
14

Prudent valuation

Total Common Equity Tier 1 Capital(47)
1,972,191

Table 6
EU CC2 - Reconciliation between IFRS equity and own funds (in EUR ‘000)

Prudential filters and deductions
Prudential filters and deductions remove or reduce certain elements from Adyen’s own funds that are considered not
to be eligible to absorb losses. The amounts related to these prudential filters and deductions are shown in table 6.

12
13
14

Art. 437 CRR.
Annex EU CCA contains the relevant rows of the ‘Own funds disclosure template’ as laid down in ITS (EU) 1423/2013.
No restrictions ex. Art. 437(e) CRR were applied to the calculation of own funds.

Adyen Transparency and Disclosure Report 2022

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Prudential filters
Adyen applies an additional value adjustment due to the requirements for prudent valuation as a prudential filter to its
Common Equity Tier 1 capital. Institutions are required to calculate an additional value adjustment in order to adjust
15
the fair value to a prudent value for all assets measured at fair value. The additional value adjustment must be
deducted from Common Equity Tier 1 capital. Adyen has two financial instruments on the balance sheet that aremeasured at fair value, and subject to this additional value adjustment, which are VISA shares and a derivative financial
liability from a merchant contract.

Deductions
Adyen also applies the following deductions to its Common Equity Tier 1 capital:• Intangible assets other than goodwill• Deferred tax assets that rely on future profitability and do not arise from temporary differences• Warrant reserve• Net profit not included in CET1 Capital (not yet eligible profit)
As of December 31, 2022, Adyen’s total Common Equity Tier 1 Capital amounted to EUR 1,972 million.

Capital requirements
Adyen applies the standardized approaches to determine its regulatory minimum capital for credit and market risk andapplies the Basic Indicator Approach for operational risk. Resulting from Adyen’s business model, regulatory capitalrequirements for operational risk are most substantial.

Credit risk
Credit risk originates from the possibility that a counterparty will not settle the full value of an obligation — neither
when it becomes due, nor thereafter. Adyen is and will continue to be subject to the risk of actual or perceived
deterioration of the commercial and financial soundness, or perceived soundness, of merchants and other financial
institutions, in particular in relation to receivables from financial institutions regarding settled payment transactions,and cash and cash-equivalents held at financial institutions. In addition, Adyen has credit risk on certain contract
assets, through and from the offering to merchants of a pre-financing service, which it refers to as Sales Day Payout.
Adyen has no derivatives or securities financing transactions, nor positions in securitization.
At 31 December 2022, Adyen’s total credit exposures amounted to EUR 7,608 million, resulting in total risk-weighted
exposures of EUR 1,153 million and an own funds requirement of EUR 92.2 million. The majority of Adyen’s exposures
have a short-term duration, with residual maturities of days. Furthermore, Adyen is aware of the concentration of its
exposures, most notably on partner banks, which is reflected in its Pillar II add-on for credit concentration risk.
Annex EU CR4 provides an overview of Adyen’s credit risk exposures, showing both the on- and off-balance sheet
exposures as per 31 December 2022 the total amount of risk-weighted exposures and the RWA density of each asset
class. Additionally, Annex EU CR5 discloses the distribution of each asset class exposure across risk-weights.

Credit risk mitigation
Credit risk mitigation techniques can be used to reduce the credit risk associated with exposures. Overall, Adyen
performs on-balance sheet netting when it has a legal right to off-set and the intention the settle, in line with IFRS.
As a credit risk mitigation technique, Adyen employs off-balance sheet netting on one occasion. This regards anenforceable master netting arrangement with one of its foreign counterparties that allows offsetting in the event ofdefault, collateralized by a debt security issued by a central government that has a credit assessment of an external
16
credit rating agency . The collateral is valued at market value and risk weighted at 10% as an exposure to central
governments. As of year-end 2022, total collateral value was EUR 31.8 million, which covered the full value of the
exposure to this counterparty. Annex EU CR3 discloses Adyen’s use of credit risk mitigation techniques.

15
16

Art. 34 and 105 CRR.
Art. 453 CRR.

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Credit risk quality and adjustments
17

Adyen applies the following definitions regarding the credit quality of its exposures .
◦ Past due: when an exposure is due for more than 1 day;
◦ In default: when an exposure is past due more than 90 days or the counterparty is considered unlikely to pay,in line with the definition of default of CRR Art. 178.
◦ Impaired: when an exposure is deemed non-collectable;◦ Non-performing: when an exposure is past due more than 90 days
Adyen assesses the expected credit loss associated with its debt instruments carried at amortized cost on a forwardlooking basis. The impairment methodology applied depends on whether there has been a significant increase incredit risk. For trade receivables and contract assets, Adyen applies the simplified approach, which requires expected
18
lifetime losses to be recognized from initial recognition of the assets.
19

At reference date, Adyen had EUR 23.0 million of non-performing exposures , for which it has provisioned EUR 4.0
million as a general credit risk adjustment.
Annex EU CR1, EU CR1-A, EU CQ3, EU CQ4 and EU CQ5 disclose further information on exposure amounts that are
non-performing, in default and subject to impairment. Most of these exposures are due from corporates and represent
invoices for payment services that were not collected via transaction flows (i.e. trade receivables).

Use of External Credit Assessment Institutions
20

Adyen applies ratings from External Credit Assessment Institutions (ECAIs) to determine the risk weight of an
exposure. With respect to its rated exposures, Adyen by default uses Moody’s whenever it has a rating available. Onlyin the case that no rating of Moody’s is available, Adyen uses a rating provided by Fitch or Standard and Poor’s,
whichever is the lowest. Adyen therefore does not cherry-pick its ratings. In order to determine the risk weight of an
exposure, a rating is converted into the corresponding credit quality step based on the standard association as
21
published by the EBA. Adyen uses ECAIs in order to determine the risk-weight of exposures belonging to thefollowing three exposure classes:• Central governments or central banks• Institutions• Corporate
Exposures to unrated counterparties are by default 100% risk weighted, in line with CRR Art. 122(2). Unrated
institutions are risk weighted in accordance with CRR Art. 121. Adyen applies the standard association published by
the EBA for connecting the ratings to the credit quality steps as set out in CRR, which is summarized in table 6 below.
CreditMoody’s assessments
quality step

Sovereigns – risk weight

Institutions – risk weight

Corporates - risk weight1

Aaa to Aa3

0%

20%

20%

2

A1 to A3

20%

20%

50%

3

Baa1 to Baa3

50%

20%

100%

4

Ba1 to Ba3

100%

50%

100%

5

B1 to B3

100%

50%

100%

6

Caa1 and below

150%

150%

150%

Table 7Mapping of credit ratings to the applicable risk weights, in line with CRR II

17Art. 442(a) CRR.
Art. 442(b) CRR.
As of 1 January, 2021, the new guidelines on the definition of default (EBA/GL/2016/07) entered into force, which specify thresholds for institutions to recognize
defaulted exposures. As a result, Adyen’s defaulted exposures are now recognized under the credit risk framework. Thus, the recognition of defaulted exposures ispurelydue to a regulatory change rather than a change to Adyen’s non-performing exposures.
20
Art. 444 CRR.
21
ITS (EU) 2018/634.
18
19

Adyen Transparency and Disclosure Report 202218

Equities in the banking bookAdyen’s exposure to equities in the banking book arises from a holding of convertible preferred Visa shares. Adyen
obtained these shares as the result of its previous holding in Visa Europe, which subsequently was acquired by Visa
Inc., and resulted, amongst others, in Adyen being issued shares of Visa Inc. as consideration for the acquisition.
The remaining Visa shares are stated at fair value for EUR 12.3 million, which is based on the fair value of Visa Inc.
Series C common stock, adjusted for lack of marketability, multiplied by an initial conversion rate of preferred stock
into common stock. These shares have no stated maturity and carry the right to receive discretionary dividend
payments. Due to a restriction on transfer, the remaining Visa shares cannot be freely traded. During 2022, Visa Inc.
effected a partial conversion of the Series C preferred stock into Series A preferred stock. The Series A preferred stock
were converted into Visa Inc. common stock and sold prior to the end of 2022 at fair market value. The proceeds
receivable was recognized within trade and other receivables (EUR 12.3 million) and an amount of EUR 11.4 million
was ultimately received during the year end.
Furthermore, the effect of the Visa shares on other financial results is a net gain of EUR 2.0 million (2021: net gain of
EUR 1.4 million) relating to an exchange gain of EUR 2.2 million (2021: gain of EUR 1.7 million) and fair value loss of
EUR 153 thousands (2021: loss of EUR 322 thousands).
As per 31 December 2022, the total exposure value of equities in the banking book amounted to EUR 12.3 million,
resulting in an own funds requirement of EUR 1.0 million. Exposures relating to equities are perpetual.

Market risk
22

Market risk comprises price risk from financial instruments, interest rate risk, foreign-exchange risk andcommodities risk. Adyen does not hold trading book items and has no commodity positions. The interest rate risk isminor as all liabilities are non-interest bearing and interest rate effects on assets (own cash balances or held at money
market funds) are limited. Adyen has no appetite to add new equity positions to its balance sheet next to the current
VISA shares that have been described in the section ‘Equities in the banking book’. Therefore, the main market risk to
Adyen is the foreign-exchange risk resulting from the cash it holds as part of its international operations, and somelonger-term non-cash balance sheet positions that are non-euro.
Adyen applies the standardized approach in order to calculate its own funds requirements for market risk. Adyen’s
total risk exposure amount for market risk is EUR 386.1 million resulting in an own funds requirement of EUR 30.9
million.

Foreign-exchange risk
The strengthening or weakening of the euro impacts the translation of Adyen's net revenues generated from its
international operations that are denominated in foreign currencies into the euro. Additionally, in connection with
providing its services in multiple currencies, Adyen generally sets its foreign-exchange rates once per day. Adyen may
face financial exposure as a result of fluctuations in foreign-exchange rates between the times that Adyen sets them.
Given that Adyen also holds some merchants' and own funds in non-euro currencies, its financial results are affectedby the translation of these non-euro currencies into euro. Whilst Adyen has measures in place intended to manage its
foreign-exchange risk (i.e. natural hedges and spot trades for any net open positions), no assurance can be given thatfluctuations in foreign-exchange rates will nevertheless have a significant impact on Adyen's results of operations.
Adyen is exposed to foreign-exchange risk on its assets and liabilities denominated in currencies other than thefunctional currency, including certain contract assets, its holding of Visa shares and the assets and liabilities of its
subsidiaries. The majority of these assets through which Adyen is exposed to foreign currency risk are denominated in
US dollar.

Operational risk
Adyen recognizes that operational risks are associated with achieving its business objectives. Operational risk
concerns the risk of losses resulting from inadequate or failed internal processes, people and systems or from external
events. Adyen has therefore implemented an internal control framework that is designed to manage the risks
effectively and efficiently and to provide reasonable assurance that objectives can be met. The operational risks thatare most material to Adyen are outlined below.

22Art. 445 CRR.

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Merchants’ potential liability for shopper chargebacks
When shoppers claim that a merchant has not performed, the issuing banks can file chargebacks. Adyen seeks tooffset such chargebacks with the payouts to the merchants, but may not be able to succeed in full. While Adyen has
implemented risk mitigation, including withholding funds from the payouts to its merchants, based on assumptions
and estimates that Adyen believes are reasonable to cover such eventualities, the measures, including the withheld
funds, may not be sufficient to cover for the complete chargeback amounts.

Availability of platform, products and services
Adyen's systems and those of its third-party service providers, including data center facilities and communication
networks, have experienced service interruptions in the past and may experience significant service interruptions in
the future. Frequent or persistent interruptions in Adyen's services could cause current or potential merchants tobelieve that its systems are unreliable, leading them to switch to a competitor or to avoid Adyen's products andservices. Moreover, to the extent that any system failure or similar event results in damages to Adyen's merchants ortheir business partners, these merchants or partners could seek significant compensation or contractual penalties
from Adyen for their losses, which, even if unsuccessful, could likely be time-consuming and costly for Adyen toaddress. Furthermore, frequent or persistent interruptions could lead to regulatory scrutiny, significant fines andpenalties, and/or mandatory and costly changes to its business practices, or could ultimately cause Adyen to lose its
regulatory licenses.

Information security
Adyen and its merchants, partners and others who use its services, obtain and process a large amount of sensitive
data. Adyen's and its partners' IT systems may be vulnerable to physical and electronic breaches, computer viruses
and other attacks by cyber-criminals, internet fraudsters, employees or others, which could lead to, amongst otherthings, a disclosure of merchants' data, damage related to incursions, destruction of documents, inability or delays inprocessing transactions and unauthorized transactions. Any real or perceived privacy breaches or improper use of,disclosure of, or access to such data could harm Adyen's reputation as a trusted brand in the handling and protectionof this data. Although Adyen carries cyber liability insurance that Adyen believes to be reasonable given the company
risk profile, it could be possible that the insurance coverage is insufficient to account for all losses forthcoming an
incident.

Data privacy
Adyen is subject to complex and evolving Dutch, European and other jurisdiction's laws, rules, regulations, orders anddirectives (referred to as "privacy laws") relating to the collection, use, retention, security, processing and transfer of
personally identifiable information about its merchants, their shoppers, third parties and others and their transactionsin the countries where Adyen operates. Much of the personal data that Adyen processes, especially financial
information, is regulated by multiple privacy laws and, in some cases, the privacy laws of multiple jurisdictions. In manycases, these laws apply not only to third-party transactions, but also to transfers of information between or among
Adyen and its subsidiaries. Any failure, or perceived failure, by Adyen to comply with its privacy policies or with any
applicable privacy laws in one or more jurisdictions could result in proceedings or actions against Adyen by
governmental entities or others, including class action privacy litigation in certain jurisdictions, significant fines,
penalties, judgments and resulting reputational damage.

Entrepreneurial culture
Adyen's entrepreneurial culture has been one of the primary drivers of its historical growth. As Adyen grows, it may not
be able to maintain its entrepreneurial company culture, which fosters innovation and talent. The hybrid working
environment adds to the challenge of maintaining, transferring and fostering the right company culture. If Adyen does
not successfully manage its growth, and is not able to differentiate its business from those of its competitors, drive
value for and retain merchants, or effectively align its resources with its goals and objectives, Adyen may not be able tocompete effectively against its competitors, leading to declining growth and revenues.

TalentAdyen's future performance depends substantially on the continued services of key talent and its ability to attract,
retain, and motivate such talent. The loss of the services of any of Adyen's key talent or Adyen's inability to attract
highly qualified key talent may adversely affect its operations. Withstanding the challenges of local and global labormarkets, Adyen aims to tailor its personnel needs to the medium- to long-term growth trajectory of the company.

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Integrity
Integrity risk is the risk of inappropriate behavior of management and employees or third parties (merchants,
suppliers, advisers) posing a current or future threat to Adyen and/or the proper functioning of the financial system,that can be attributed to Adyen or in which Adyen acts imputable. Such inappropriate behavior could refer to violationsof law, regulations, internal policies, and market expectations of ethical business conduct. If Adyen (or a third party it
does business with) fails to comply with laws and regulations, or market expectations of ethical business conduct,
supervisory authorities may initiate legal and regulatory proceedings against Adyen.
Adyen has policies and procedures that it believes are sufficient to comply with the relevant anti-money laundering,anti-corruption and sanctions rules and regulations. Inability to prevent integrity risks from materializing can havesevere consequences, including litigation, sanctions, administrative measures, fines, criminal penalties andreputational consequences.

Tax and tax reporting
Social tolerance for tax avoidance is decreasing and international developments have led to the introduction of stricter
regulations around tax avoidance. Adyen has a low risk appetite to be involved in activities aimed at evasion or
avoidance of tax regulations by itself or third parties through the provision of its services. The determination of Adyen's
worldwide position for income taxes, value-added taxes and other tax liabilities requires clear processes and controls
by which Adyen aims to automate as much as possible as to reduce the amount of manual intervention. Adyen's
determination of its tax liability is always subject to audit and review by applicable domestic and foreign tax authorities.
Any adverse outcome of any such audit or review could have a negative effect on Adyen's business and the ultimate tax
outcome may differ from the amounts recorded in its financial statements.

Basic indicator approach
Adyen applies the basic indicator approach in order to calculate its own funds requirements for operational risk under
Pillar I. Under the basic indicator approach, the own funds requirement for operational risk is equal to 15% of theaverage over three years of the relevant indicator. The relevant indicator refers to the sum of several elements within
the profit and loss statement of the institution.
Adyen’s total risk exposure amount for operational risk is EUR 1,883 million resulting in an own funds requirement of
EUR 150.7 million per year-end 2022. Annex EU OR1 discloses on the calculation of the pillar 1 own funds
requirement for operational risk.

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Combined buffer
requirements
On top of its capital requirement for credit, market and operational risk, Adyen is subject to macro-prudential capital
buffer requirements. These buffer requirements aim to mitigate economic cyclicality by acting as shock absorbers intimes of stress. For Adyen, only the capital conservation buffer and the countercyclical capital buffer apply. The
combination of all capital buffers constitutes the combined buffer requirement.

Capital conservation buffer
The capital conservation buffer requires banks to hold up to 2.5% of a bank’s total exposures in CET1 capital to avoid
breaches of minimum capital requirements during periods of stress when losses are incurred. The capitalconservation buffer rate can be set by the national competent authority, as set out in CRD V. In Adyen’s case the rate is
set by DNB and currently amounts to a 2.5% buffer requirement. At 31 December 2022, Adyen’s capital conservationbuffer requirement was EUR 85.6 million.

Countercyclical capital buffer
23

Adyen is subject to an institution specific countercyclical buffer requirement. The geographical distribution ofAdyen’s credit exposures relevant for the calculation of the countercyclical capital buffer is shown in Annex EU CCyB1.
The institution-specific countercyclical capital buffer rate for Adyen is 0.05%, which amounts to an institution-specificcountercyclical capital buffer requirement of EUR 1.7 million, which is presented in Annex EU CCyB2.

23

Art. 440 CRR.

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Leverage
Leverage means the relative size of an institution’s assets and off-balance sheet obligations as compared to theinstitution’s own funds.

Leverage ratio
24

The leverage ratio is a monitoring method used to assess the risk of excessive leverage within institutions. It isdefined as Tier 1 capital divided by a non-risk-based measure of the on- and off-balance sheet asset positions. By
restricting the build-up of leverage, the leverage ratio aims to avoid destabilizing deleveraging processes that candamage the broader financial system and the economy.
As per 31 December 2022, Adyen has a leverage ratio of 26.3% (2021: 29.4%) which is above the regulatory
requirement of 3%. Annex EU LR1, EU LR2 and EU LR3 provide a break-down of Adyen’s leverage ratio and the CRR
leverage ratio exposures by asset class.
Adyen does not operate a business model that centers around balance sheet transformation and as such theprocesses used to manage the risk of excessive leverage focus primarily on monitoring of the ratio itself and inclusionof the ratio in scenario modeling.

Asset Encumbrance
An asset is encumbered if it has been pledged or if it is subject to any form of arrangement to secure, collateralize or
credit enhance any transaction from which it cannot be freely withdrawn.
Adyen has a limited amount of encumbered assets in the shape of restricted cash which is therefore not available forgeneral use by the company. Of the cash held at banks, other than central banks, EUR 68.6 million is restricted. The
restricted cash mainly relates to deposits required under the US Federal Foreign Branch license as well as deposits
held as guarantee for leased offices. Furthermore, Adyen has EUR 3.6 million other encumbered assets which
25
represent other deposits, including lease deposits. Adyen’s total encumbered assets amounts to EUR 72.2 million .
Annexes EU AE1, EU AE2 and EU AE3 provide further detail on the encumbered and unencumbered assets.

24
25

Art. 451 CRR.
Art. 443 CRR.

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Liquidity and funding
Pillar I includes requirements with respect to short-term liquidity in the form of the Liquidity Coverage Ratio (LCR) and26
medium-term liquidity (funding risk) in the shape of the Net Stable Funding Ratio (NSFR) .

Liquidity Coverage Ratio
Adyen calculates its LCR in line with the relevant Delegated Act. Adyen takes aspects of currency convertibility andencumbrance into account. The LCR is calculated as High Quality Liquid Assets (HQLA) relative to the net liquidity
outflows over 30 days. The Delegated Act prescribes that the LCR is to be higher than 100%, with a Liquidity Survival
Period of at least 6 months.
Adyen’s HQLA (liquidity buffer) consists of cash held at central banks and money market funds invested in USgovernment instruments. Net liquidity outflows are calculated as the net of cash inflows and outflows, though subject
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to a 75% cap on inflows. The LCR of Adyen per 31 December 2022 is 2,069% (2021: 5,746% ) with a survival horizonof 48 months, meaning that Adyen is fully compliant with the liquidity requirements set out in the LCR DA. As per 18
July 2022 DNB and Adyen agreed a new calculation method for the LCR ratio on the basis of the application of Article
26 LCR DA. Adyen reports its LCR on the basis of this revised calculation from July 2022 onwards.
Annex EU LIQ1 provides more detail on the build-up of Adyen’s LCR as well as presents quarterly averages of thebalances in scope. Adyen's LCR is considerably well above external and internally set limits.

Net Stable Funding Ratio
CRR2 regulation has introduced a minimum Net Stable Funding Ratio (NSFR) of 100% that requires banks to maintaina stable funding profile in relation to their on and off balance sheet exposures.
The NSFR looks at medium-term liquidity risk (funding risk) and assesses the ability of Adyen to fund its upcoming
activities by applying quality weights reflecting liquidity characteristics to sources of funding as well as to exposuresthat require funding. The weights applied are set out in CRR II Art. 428 and differ per type of Available Stable Funding(ASF) and Required Stable Funding (RSF).
Adyen’s NSFR per 31 December 2022 is 274% (2021: 284%). The improvement of the ratio over 2022 is attributable
to an increase in Adyen’s CET1 capital (ASF). Annex EU LIQ2 further discloses on the build-up of Adyen’s NSFR for thereporting period.

Liquidity risk management
Adyen operates a business model in which it has deployed structural measures, strategies and processes to mitigate
liquidity risk. In general, Adyen only has a payment obligation to fulfil towards their merchants when the funds from theschemes and payment methods are settled to Adyen’s bank account. In situations of exception to this rule, additionalliquidity risk mitigating measures are in place. Adyen is self-funding and holds sufficient own cash reserves to meet its
own short- and longer-term liquidity needs.
Adyen’s short-term liquidity management is set up to ensure funds are available in the right legal entity, bank account,
country, currency, and at the right moment in time to fulfil Adyen’s contractual payment obligation to its merchants.
This is established by managing cash and FX positions on a daily basis with dedicated teams. Adyen does not apply
synthetic hedging to manage its liquidity or connected risks.
Adyen operates a single, global payments platform which allows for centralized liquidity risk management supported
by global policies. Liquidity needs at individual legal entities are limited, but if these arise, these are addressed by thecentral Treasury team.

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Art. 451a CRR.
As per new calculation method with the application of LCR DA Article 26, Adyen's LCR for reporting period 31 December 2021 was 2,335%.

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As a technology company that relies heavily on availability and continuance of services, liquidity aspects are part ofcontinuity scenario exercises and resilience plans. Adyen plans for both operational as well as financial origins of stress– and if at all relevant – it monitors the relevant liquidity metrics across the stress horizon.
As stated in the concise risk statement, the liquidity risk management systems put in place are adequate with regard to
the institution’s profile and strategy. Given Adyen’s business model and structural measures in place, liquidity risk islimited. Adyen assesses that additional metrics as put forth in article 451a(4) next to the disclosed metrics in EU LIQ1
and EU LIQ2 do not contribute to a better understanding of the liquidity risk profile of Adyen.

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Disclosures on Pillar II
Pillar II sets out mandatory processes for institutions and supervisors to fulfill capital adequacy and liquidity adequacy
requirements. Adyen combines the assessment of these requirements within its ICLAAP report. This chapter
describes Adyen’s ICLAAP and specifically addresses interest rate risk in the banking book.

Internal capital and liquidity adequacy
assessment process
Adyen has designed and implemented as well as maintains and monitors internal risk management and control
systems to identify and manage risks associated with its strategy and activities. Additionally, Adyen uses stress testing
to understand its financial resilience and to learn from its sensitivity to stress events. The stress scenarios that Adyen
defines are based on exceptional but plausible events with an adequate degree of severity. Threats and trends relevantto the management board are included. Stress testing is performed in accordance with EBA guidelines on stresstesting. The results from stress tests are used as input for fine-tuning Adyen's risk appetite, risk capacity and risk limits
as a feedback mechanism.
Assessing the adequacy of capital and liquidity is carried out on a continuous basis, but often for specific areas ofinterest. At a minimum, Adyen conducts an integral adequacy assessment once a year and reports on this to DNB via
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its Internal Capital and Liquidity Adequacy Assessment Process (ICLAAP ). Over 2022 the results showed Adyen has
a high financial shock absorption capacity and adequate levels of capital and liquidity.

Interest rate risk in the banking book
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Interest rate risk on financial instruments included in the banking book could arise from adverse movements inunderlying interest rates. Although at Adyen significant liabilities towards the merchants are present at any time, theseliabilities are non-interest bearing and are settled at short notice. Adyen operates a fee-based business model,
inherently limiting IRRBB exposure.
Adyen is exposed to interest rate risk in the banking book in relation to its cash held at central banks and financial
institutions. However, cash balances of Adyen are not significantly exposed to interest rate risk due to the fact that the
cash is used to settle the current liabilities towards the merchants at short notice. In addition to the cash related tomerchant fund flows, Adyen holds a significant balance of excess own cash (mostly at central banks) that is used to
grow the business. These funds are interest-bearing and generate interest income in the current positive interest rateenvironment. Nevertheless, as there is no mismatch in maturity of interest bearing assets/liabilities, Adyen assesses
the interest rate risk to not be material.
In line with the guidelines on the management of interest rate risk arising from non-trading book activities (EBA-GL
2018/02), Adyen has quantified the impact of interest rate movements in its earnings as well as market value changesof its financial instruments and their direct effect on capital (EVE) for each significant currency. Given the relatively
straightforward nature of Adyen’s interest-sensitive instruments, the interest rate risk is calculated as a given change(shock) in interest rate multiplied by the instruments’ nominal value and average maturity. In its quarterly interest raterisk in the banking book assessment, Adyen quantifies an interest shock scenario under the assumption of a parallel
shift in yield curve from the base case. Hence, only minor impacts can be expected. In conclusion, as a result of thenature of the products on Adyen’s balance sheet, interest rate risk is considered to be minimal and capitalizing against
this risk in Pillar II would be unsuited. Please see Annex EU IRRBB1 for a quantitative overview of Adyen's interest raterisks of non-trading book activities.

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Art. 438(a) CRR.
Art. 448 CRR.

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Remuneration
Adyen’s remuneration policy
The objective of Adyen’s remuneration policy is to recruit and retain the best talent worldwide by offering competitive
payment structures that take account of our strategy to focus on our merchants’ growth, changing the payment
landscape and having fun while doing so.
Adyen’s remuneration policies are consistent with, and promote, sound and effective risk management and are alwaysaligned with the strategy and Adyen Formula to create long-term value for our company and our merchants. As such,the remuneration policy does not contain incentives that exclusively benefit staff members themselves or encourage
improper risk-taking.
The remuneration policy is published on Adyen’s website. There have been no deviations from the policy or the30
procedure for its implementation in the financial year 2022 .

Remuneration principles
Adyen is committed to ensure equal pay between women and men. We value all perspectives, so we see no reason to
reward one more than the other – same role, same pay. Our annual equal pay audit is designed to safeguard same pay
and uphold this standard.
The size of an individual remuneration package is based on the scope of responsibilities, the employee’s experienceand performance, and the local market circumstances, which varies depending on country. Remuneration may consistof a base salary, share-related remuneration, pension entitlements and other emoluments. Certain employees’
remuneration may also include variable pay.
Adyen has the right pay mix in place to mitigate short-term orientation and contribute to the long-term performance ofthe company. This is specifically achieved by awarding staff members, including the Management Board, with (longterm) share-related remuneration. The purpose of the share-based payments is to put staff members in a financial
ownership-like position where shares are concerned and for them to obtain an economic interest in the pursuit ofAdyen’s long-term objectives such as sustainable growth, development, profitability, and financial success of Adyen.

Variable remuneration
Adyen observes the laws and regulations applicable to the company, which includes the remuneration regulations asprovided in the Act on Remuneration policy Financial Undertakings (Wet beloningsbeleid financiële ondernemingen)and the EBA Guidelines on Sound Remuneration Policies (EBA Guidelines) (the Remuneration Regulations). Adyen's
remuneration policy is in line with the Remuneration Regulations.
Employees may be rewarded with variable remuneration. Variable remuneration, if awarded, will at all times not exceed
the fixed to variable remuneration ratios as provided in the Remuneration Regulations. In accordance with theRemuneration Regulations, variable remuneration will be subject to hold back and claw back instruments. As novariable remuneration has been awarded to the members of the Management Board or the Supervisory Board in thefinancial year 2022, no variable remuneration has been adjusted or clawed back in accordance with these instruments.
The total global company-wide amount of variable remuneration awarded over 2022 was EUR 22.2 million (2021: EUR
19.9 million) compared to total staff expenses of EUR 380.6 million (2021: EUR 240.5 million).

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Art. 450 CRR.

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Identified staff
In 2022 there were 33 employees (2021: 26) identified as “Identified Staff”, being staff that is considered to have amaterial impact on the risk profile of Adyen. Annex EU REM 1 provides an overview of remuneration awarded to
identified staff over 2022, split into fixed and variable remuneration.
In 2022 there were 7 employees with a total annual remuneration (including employer pension contributions and any
severance payments made) higher than EUR 1 million but lower than EUR 1.5 million.

Nomination and Remuneration Committee
The Nomination and Remuneration Committee consist of three Supervisory Directors as determined by theSupervisory Board. The current remuneration policy for the Management Board and the Supervisory Board andremuneration of the Managing Directors and fees for the members of the Supervisory Board was adopted at theshareholders meeting on May 26, 2020. A new Remuneration Policy for the Supervisory Board will be brought forshareholder approval to the next Annual General Meeting in 2023, effective per 1 January 2024.

Remuneration for the Management Board
The remuneration policy that applies to the Managing Directors is in line with the remuneration policy that applies toall staff. As such, the remuneration policy does not contain incentives that exclusively benefit Managing Directors
themselves.
As of 2018 and in line with (i) the Act on Remuneration Policies in Financial Enterprises (Wet beloningsbeleid financiële
ondernemingen), and (ii) the Guidelines on Remuneration Policies and Practices as formally adopted on 10 December
2010 by the Committee of European Banking Supervisors, Adyen does not award variable remuneration to theManaging Directors.
The remuneration of the Managing Directors is determined by the Supervisory Board with due observance of the
remuneration policy as adopted by the General Meeting. A new Remuneration Policy for the Management Board will
be brought for shareholder approval to the next Annual General Meeting in 2023, effective per 1 January 2024.
The Managing Directors do provide the Nomination and Remuneration Committee with their views with regard to theamount and structure of their own remuneration. In 2022 base salaries of the Managing Directors were increased with
9,6%, in line with the average salary increase of an Adyen employee in 2022.
Compared to AEX companies, the Management Board’s remuneration is below the median of the benchmark. This
discrepancy is accepted for the current Managing Directors. To attract future Managing Directors, the remuneration
package for new Managing Directors may be adjusted to the market.
On an annual basis we determine the internal ratio of the Management Board members’ remuneration versus all other
Adyen staff. For this ratio Adyen included all remuneration components of the CEO compared to the average total
remuneration of all Adyen employees worldwide. For the CEO a ration of [7:1] applies (2021: [7:1]). For the other
Management Board members a ratio of [7:1] applies (2021: [6:1]).
This calculation methodology is in accordance with the guidance as provided by the Monitoring Commission of the
Dutch Corporate Governance Code. Adyen's pay ratio is observed to be amongst the lowest compared with other
AEX companies.

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ESG risks
On January 24th, 2022, the European Banking Association (EBA) published the Implementing Technical Standard
31(ITS) on Pillar 3 disclosures for environmental, social and governance (ESG) risks . The standard is meant to promotemarket discipline, allowing stakeholders to assess a bank's ESG risks and strategy. Disclosure should also provide
insight into the undertaking's asset exposure to climate change risks, both in the form of physical and transitionalrisks, including quantitative efforts made by the undertaking to mitigate and adapt to the adverse effect ofclimate change.
The EBA ITSs require the disclosure to consist of three qualitative sections to define environmental, social andgovernance risks, plus a total of ten quantitative tables (the “Tables”), four of which on climate change transition risk,
one on climate change physical risk, plus three with quantitative data on the actions that credit institutions are
implementing in order to mitigate risks linked to climate change, including information on taxonomy-alignment
actions (GAR and BTAR) and any other mitigation actions.
Adyen will therefore start with providing a qualitative information section consisting of business strategy and process,governance, and risk management for each of the three ESG risk dimensions. Next, the quantitative information
section will follow with a more in-depth assessment of Adyen’s asset exposure to ESG risk. This disclosure will only
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include five applicable templates applicable out of the 10 prescribed in the ITS .

Timelines and proportionality
The EBA Guidelines allow for a phase-in period until June 2024 for more complex risk measurement methodologies
and data points, such as Scope 3 emissions and alignment metrics, i.e. the disclosures on the Green Asset Ratio (GAR)
and the Banking Taxonomy Alignment Ratio (BTAR). The guidelines also make considerations around proportionality.
The EBA acknowledges the challenges faced by institutions when preparing ESG-related disclosures and have madesome proposals to support institutions in preparing for these disclosures. Mainly, a proportionate approach is
proposed for the disclosure of information on exposures towards physical risk, which is to be provided ‘on a best effort
basis’ with the possibility for institutions to explain in the case where it is not feasible to collect the information on abilateral basis or to estimate it without unduly overburden institutions or their counterparties. As such, Adyen has now
disclosed the applicable templates 'on a best effort basis'.

Qualitative information
At Adyen, ESG matters are treated holistically. As such, the management and governance of ESG matters does notdiffer significantly across the three spheres. The same applies to the process of identifying, measuring and monitoring
activities and exposures sensitive to ESG risks.

ESG Governance
The Management Board as a whole sets the direction and execution of the Company's ESG strategy as embedded
throughout the company's strategy. Specific topics are distributed amongst the members of the Management Board.
With respect to ESG, the CFO oversees environmental sustainability and social innovation, the CLCO oversees
governance matters and the CEO (after appointment in the Annual General Meeting this will fall under the CHRO)
oversees matters relating to Adyen's workforce/social growth. Through this structured approach, the Management
Board directs specific teams in the first- and second-line risk management functions. Second-line risk management
teams integrate ESG risks into the Integral Risk Management Framework and related policies and procedures aredeveloped in conjunction with first-line teams, covering relevant transmission channels in environmental andsocial risk.
The company’s overall ESG strategy and activities are discussed at Supervisory Board level at least on an annual basis.
In 2022, ESG topics were discussed in three Supervisory Board meetings — during the materiality assessment
process, the ongoing preparations for the 2022 Annual Report, and as part of the annual strategy session.

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EBA website (https://www.eba.europa.eu/eba-publishes-binding-standards-pillar-3-disclosures-esg-risks)
The remaining templates will be disclosed in subsequent publication rounds

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In 2022, Adyen established the ESG Working Group, a cross-functional group that includes members of theReporting, Legal, and Corporate Risk teams. The objective of the Working Group is to coordinate ESG projects and toestablish an unified approach to reporting on Adyen’s ESG matters. The ESG working group holds sessions withidentified subject-matter experts on material ESG topics to track progress and drive success in their respective areas.
The Working Group reports its activities to Adyen’s CFO, and updates the Management Board on ESG matters on aquarterly basis. The third line internal audit function provides independent assurance on the effectiveness of the ESG
program including risk management, control activities, by performing audits. The Head of Internal Audit reports
directly to the Chair of the Audit and Risk Committee.
There are also numerous employee grass-root initiatives on ESG topics within the company. Adyen actively empowers
it's employees to use time and resources to make an impact. Within the Adyen culture, employees are enabled to act
autonomously and without bureaucratic limitations to enable speed. However, coordination between Management
Board, ESG working group and other employees takes place continuously and through specific teams, committees or
project-based initiatives. Examples include the Adyen Impact and Sustainability teams, Diversity, Equity and Inclusion
ERGs, as well as our 'seat at the table' quarterly meetings.
In order to integrate short-, medium-, and long-term environmental and social factors and risks into the organizational
structure, ESG risks are embedded throughout operational design, policies & procedures, and training of Adyen's
employees. These procedures are updated frequently as part of the Adyen's risk and control cycle. Further, teams
across the business set goals and objectives as part of the annual goals setting and key result cycle. These goals andobjectives are used to drive short-medium- long term strategy relative to each of the specific ESG areas. Employees
are also expected to understand their role in creating an ethical and inclusive company culture as embedded in the
Adyen Formula. To create an environment of ethical behavior both inside and outside of Adyen, everyone at Adyen
knows that they share the responsibility to prevent any acts contrary to generally accepted social or business conduct
standards, or those which could seriously damage confidence in Adyen or in the financial industry (e.g. breaches ofapplicable requirements, suspected wrongdoings).
Currently, Adyen's Management Board remuneration policy does not include variable remuneration for any specifictopics, including ESG topics. Looking forward, pending shareholder approval, as part of the new remuneration policy
applicable from 1 January 2024, Non- financial performance criteria could be selected in accordance with Adyen's
ambition to deliver long-term value and sustainable value creation to all stakeholders. The non-financial performance
criteria may include, but are not limited to ESG related objectives, the Adyen formula, risk and compliance objectives,operational objectives and strategic objectives.

ESG materiality assessment
In order to identify and measure activities and exposures sensitive to ESG risks, Adyen carried out an ESG materiality
assessment. The goal of the assessment was two-fold: understand what ESG risks Adyen is most exposed to andbetter understand Adyen's impact on global sustainability matters. Adyen's approach to the materiality assessment
took into account the principle of double materiality as defined in the Corporate Social Reporting Directive (CSRD),
which will become applicable to Adyen as of the financial year 2024.
The assessment, led by the Corporate Risk team, was carried out by evaluating a long list of ESG topics, which werethen assessed across several risk factors such as credit risk, market risk, operational risk, integrity risk, reputationalrisk, financial risk. The assessment included both qualitative and quantitative considerations in addition to considering
all possible transmission channels. For the assessment, risk management experts met with subject matter experts
within the organization ranging from information security to commercial teams, and from finance to HR. To further
qualify the findings, Adyen analyzed the same list of ESG topics through an impact lens (to what extend Adyen wants
to make an impact on the topic, irrespective of the risk it entails). For the purpose of Pillar III, the focus remains on therisk assessment and its outcome.
To challenge and validate the outcome of the inherent risk assessment, also an internal stakeholder assessment was
performed. This included a structured survey with employees, the global leadership team, the Management andSupervisory Board. The external perspective was based on input in the form of investor engagements, focus group
letters, and ESG indices. The results from the materiality assessment, are presented to and approved by the Risk
Committee, the Management Board and the Supervisory board. Below, in the individual risk sections, the outcome of
the materiality assessment is discussed in more detail.

Environmental risk
Business strategy and processes
Adyen integrates environmental risks into business strategy, operations, and risk management through the design of
its payment platform, organization, workforce, and overall business continuity. Through investing in its payments

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platform, new products and services, and human resources, Adyen aims proactively manage risks, including
environmental risk. Since 2019, Adyen has focused on offsetting its greenhouse gas emissions through carbon credit
purchases. In order to increase the accuracy of its carbon footprint calculations, Adyen has implemented a data
management platform focused on sustainability to aid in the measurements of key indicators and set meaningfultargets in the future.
Adyen is required to report on environmentally sustainable economic activities in line with EU taxonomy regulation (the“EU taxonomy”). The EU taxonomy was introduced to provide a common classification system for sustainableeconomic activities in support of the action plan on financial sustainable growth and EU’s climate and energy targets
for 2030. For the financial year 2022, credit institutions are only required to disclose what percentage of its exposures
are investing in or financing Taxonomy eligible activities. Currently, only climate mitigation and adaptation objectives
are in scope for eligibility criteria. Eligibility indicates that an activity is in scope for further screening under theTaxonomy regulation. As at December 31, 2022, based on the data available, Adyen's exposure to financing orinvesting taxonomy-eligible activities is well below 1% of total assets. This is due to the nature of Adyen’s businessmodel, which is primarily processing and settling transactions and not investing in or financing specific taxonomyeligible activities. Further, Adyen's exposures subject to eligibility screening, have a short-term duration, with residual
maturities of days. As a result of this, Adyen has not set, and does not plan on setting any targets relating to EU
Taxonomy- aligned activities. For more information on methodologies and definitions used, refer to the 2022 Annual
Report - EU Taxonomy Report.
Adyen continues to diversify its global customer portfolio which aids in reducing risk as a result of the environmental
risk associated with our counterparties. This helps us to reduce overreliance on industries and regions, which could bespecifically vulnerable to climate-related and environmental risks, both physical as well as transitional. Additionally,
Adyen actively engages with suppliers, partners, merchants, and other external stakeholders and includes Adyen's
sustainable approach into its business operations.
Adyen has clearly defined policies and approaches to assess counterparties before engaging in any agreements as it’scommitted to upholding ethical behaviors when working with third parties and suppliers such as the Third-Party
Management Policy. Adyen aims to only engage with parties that actively pursue compliance with safeguards as
mandated by Dutch law, EU regulations, and the requirements mandated in the jurisdictions where Adyen operates. All
partners and suppliers must also comply with all applicable regulations and laws regarding sustainability practices.

Risk management
The outcome of the materiality assessment showed that residual environmental risks were determined to be lessmaterial to Adyen when compared to social and governance risks. Physical environmental risks are addressed
through Adyen's overall business continuity execution, which limits the residual risk to Adyen's operations if offices,
data centers, or other key infrastructure or personnel becomes unavailable. Adyen's business finance offerings have
limited maturity (< 12 months) and do not involve collateralized assets that poses a physical environmental risk. In
addition, in order to better assess the exposure to transition risk, the EBA asks institutions to disclose information on
exposures towards sectors that highly contribute to climate change. Template 1 (Banking book – climate changetransition risk ) as disclosed below, shows a breakdown of Adyen's exposures towards non-financial corporate
operating in the sectors that highly contribute to climate change. Based on the classification of the exposures per
NACE codes, as at 31st of December 2022, EUR 55.5 million are exposed to sectors that highly contribute to climatechange. This amount is less than 1% of total assets. More information on this breakdown can be found in the'Quantities disclosure' section.
At this point in time, due to this limited materiality, Adyen has not integrated explicit short-, medium-, and long-term
effects of environmental factors.
New sustainability requirements such as CSRD and the EU Taxonomy are welcomed by Adyen as they can be used toprovide more insights into real risk and impact of environmental topics to the sector. Typically, these type of
regulations are more impactful for carbon-intensive companies or to financial institutions that hold substantial
investment portfolios or credit portfolios that include physical exposure and collateral. Adyen continues to make thisbias in the regulation explicit, as it explains to a large extent the limited applicability to a bank with a business model
like Adyen, and as such the less need for sophistication in framework.
In its materiality assessment Adyen maps out the transmission channels of climate-related risk drivers to credit risk,
reputational risk, strategic risk, and environmental risk using descriptive, qualitative judgement. These causal chainsleading to (potential) impact are corroborated with internal stakeholders. See Materiality Assessment above for further
information on the process used to identify material topics. The transmission channels in environmental risk are mostprevalent through physical risk to our operations such as data centers, offices, and personnel. Adyen addresses mostof this type of risk through its business continuity risk management and organizational resiliency. Furthermore, Adyen
identifies that a sustainable approach to doing business is vital in its license to operate in modern society.

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From prioritizing the need to better understand and measure the company’s own footprint to putting an emphasis on
maximizing impact from funds contributed towards climate projects, notable improvements have been made. By
working with a professional ESG data management platform, emissions can now be monitored throughout the courseof the year as opposed to on an annual basis. This will aid in better tracking progress on reduction efforts once targets
are set in line with the Paris Agreement. To further validate the conclusions reached through the materiality
assessment, Adyen also incorporated environmental risks in the stress testing scenarios as part of the Internal Capitaland Liquidity adequacy assessment. The stress test scenario simulates a climate disaster in one of the areas in which
Adyen operates. The results showed a negligible impact on both capital and liquidity indicators as Adyen has designed
its operational framework in such a way to be resilient in such a scenario. Adyen concludes that environmental risks,both physical and transitional are limited from a financial risk perspective. However, Adyen recognizes the importanceof incorporating climate risk into its business strategy and risk and control frameworks. We evaluate residual climate
risk during the company- wide and regional risk assessments. Adyen incorporates climate- and environmental risks in
its risk appetite and strategy setting as Adyen aims to have minimal adverse impact from environmental risks and todrive sustainable change. Currently, Adyen has not set limitations on its financing operations in terms ofenvironmental targets, objectives or otherwise.

Social risk
Business strategy and processes
Adyen integrates social risks into its business model and strategy primarily by adopting a series of policies aimed atlimiting social risks and encouraging ethical behaviors and conduct throughout the business. Further, Adyen has
focused on developing products that have a positive social impact. With reference to services offered by the Company,
Adyen has established a prohibited and restricted list of products and services linked to sectors considered to besensitive in social terms. Some of these sectors include, for example, animals and wildlife products classified as
endangered or protected, hazardous material and trade of weapons, ammunition, military arms, explosive devices andfirearm parts. With regards to building products aimed at having a positive social impact, Adyen has developed androlled out Adyen Giving. Adyen Giving is a feature of the check-out process, which allows charities to integrate on thesales channel of Adyen's existing merchants. By using Giving, merchants can partner up with their preferred charities
and shoppers can make donations during the check-out process in a seamless way. Adyen Giving is the first of
Adyen’s impact technology products but the suite of products is expected to expand in the coming years.
Adyen has made a number of commitments and has set out overarching objectives in relation to some of the materialsocial topics in order to address social risks. One of the most significant commitments is the 1% of Adyen’s Net
Revenue dedicated to initiatives that support the UN SDGs. In 2022, Adyen announced that it would annually donate
1% of its net revenue to initiatives that support the UN SDGs. By aligning with this framework, Adyen’s contribution will
help accelerate change where it’s needed most. The amount donated on an annual basis is a percentage of Adyen’s
net revenue as opposed to a fixed amount as the Company believes that as the business grows, so should its impact.
More broadly, when it comes to Adyen’s Impact technology ambitions, Adyen had aims to unlock as much revenue as
possible through its suite of impact technology products. Adyen has also set targets around Diversity, Equity andInclusion. In addition to meeting the statutory diversity quota for the Supervisory board (at least one-third female
members), Adyen is committed to increasing its gender balance of the Management Board and global leadershipteam together to consist of at least one-third female members. As Adyen’s ESG strategy further develops in the
coming years, it is anticipated that specific targets for each of the material social topics will be further defined.
Adyen recognizes its responsibility when it comes to mitigating and reducing socially harmful activities linked to its
counterparties. Adyen has clearly defined policies and procedures to assess counterparties before engaging in any
agreements as it’s committed to upholding ethical behaviors when working with third parties and suppliers. Adyen has
adopted a Third Party-Management Policy that clearly defines the assessment mandated before engaging in any
agreements. Namely, Adyen aims to only engage with parties that actively pursue compliance with social safeguards
as mandated by Dutch law (Child Labor Due Diligence Act), EU regulations (European Convention on Human Rights)
and the requirements mandated in the jurisdictions where Adyen operates. All partners and suppliers must also
comply with all applicable regulations and laws regarding human rights, child labor, and sustainability practices, andwhere relevant, have in place all necessary AML controls. In defining these criteria, Adyen has also made reference tointernationally recognized principles and frameworks, such as the Universal Declaration of Human Rights, the ten
principles of the UN Global Compact, and the UN Sustainable Development Goals (SDGs). In addition, to uphold
ethical behavior both inside and outside of Adyen, everyone at Adyen knows that they share the responsibility toprevent any acts contrary to generally accepted social or business conduct standards, or those which could seriously
damage confidence in Adyen or in the financial industry. This is also reflected in Adyen's formula. The formula
principles outline Adyen’s way of working where making good choices is inherent to ethical behavior and trust. These
principles have been key to the company’s decision-making over the course of building Adyen and are key toencouraging an ethical work culture fundamental to mitigating a number of social risks. In addition to the Adyen

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Formula, Adyen has an internal compliance handbook which promotes integrity and ethical conduct. The compliancehandbook is a central part of the onboarding process and is often used to train and educate the teams on the topics in
the handbook.

Risk Management
Adyen also considers the risks it may encounter due to social developments. Specifically how its own workforce
develops, the relationship with the society in which it operates, and the political environment. For Adyen, social
factors/risk include factors which may impact or influence its workforce, ethical business practices (human rights,
child labor, etc), personal data protection and impact the local communities in which Adyen operates. Whenassessing and reporting on these social risks/ factors, Adyen makes reference to internationally recognized principles
and frameworks, such as the Universal Declaration of Human Rights, the ten principles of the UN Global Compact andthe UN Sustainable Development Goals (SDGs). With the upcoming Corporate Sustainability Reporting Directive(CSRD), Adyen will further align its definitions and methodologies with the requirements outlined in the European
Sustainability Reporting Standards (ESRS).
Through the materiality assessment discussed in more detail above, Adyen identified a number of social matters andrisks most relevant for the Company. When identifying transmission channels for social risks, failed internal
processes and internal or external events are considered. The material social matters and risks identified include nondiscrimination (DEI), learning and development, employment practices and impact on local communities. These topics
are both relevant from a risk and an impact perspective as Adyen recognizes not only how these factors play in thelong-term value creation of the company but also how Adyen can impact/support positive social change. Dependingon the matter, different teams across the organization monitor exposures towards the identified risks. This is done
through the identification of a series of metrics which are tracked in order to monitor any changes and to assess any
trends. These stretch from employee metrics (i.e gender ratios) to amounts donated to support the UN SDGs, tonumber of data breaches (if any). In addition, with regards to social risks, Adyen also conducts a yearly culture andequal pay audit, , and actively considers geopolitical developments in light of its supply chain as well as interest andinflation expectations.
For each material social matter, Adyen has a series of activities and actions with the goal of either monitoring risk,
limiting negative impact or enhancing positive impact. These are outlined in more detail in the 2022 Annual Report(Management Report). Each section details the initiatives which Adyen is involves in- stretching from local community
initiatives such as employee volunteering to DEI recruitment activities and company-wide trainings.
With regards to tooling used for identification and management of social risk, Adyen relies on series of systems
depending on the topic at hand. All workforce related data is managed and stored in Adyen's ERP, while businessprocess documentation and internal control mapping is linked to a risk and compliance tool.

Governance risk
Adyen acknowledges the importance of strong governance within Adyen but also the governance performance of its
counterparties which operate within Adyen’s business environment such as its suppliers and merchants. The
Compliance function, which reports directly to the CLCO, plays a key role in designing and strengthening Adyen's
integrity controls when it comes to counterparty governance. The focus of the team is to establish global decisionmaking practices that allow everyone at Adyen to make ethical choices that continually inspire trust in all stakeholders
and mitigate integrity related risks.
As anticipated in the Social Risk section, Adyen holds its suppliers to the same standard as it holds itself. With this inmind, Adyen has designed and implemented an onboarding process for third parties which includes an inherent(including overview of regulatory requirements, as well as security and data privacy risks) and residual risk assessment(including reference to all relevant mitigating measures and controls put in place), which is followed by a contractual
phase and, for onboarded third parties, monitoring controls. On these grounds, Adyen classifies third parties into
separate risk categories which prescribe which risk assessment steps, policies, and provisions are necessary for
Adyen to accept a certain third party.
Before onboarding and offering services to any of its merchants, Adyen performs a risk assessment aimed at
identifying potential risks, based on a number of factors including what activities are carried out and in which
jurisdiction the merchant operates in, per relevant regulatory standards, also with the aim of determining whether thecustomer profile is within Adyen's risk appetite. The assessment is carried out in conjunction with Adyen’s prohibitedand restricted list of products and services and furthermore considers any adverse media or sanctions indications.
With regards to customers who are availing of credit products (i.e capital), an additional credit assessment isperformed. Through these assessments, Adyen is able to determine whether these customers are within Adyen’s risk
appetite and eligible to work with Adyen.

Adyen Transparency and Disclosure Report 2022

33

Finally, the company-wide Integrity Training is a testament to Adyen’s commitment to ensure that Adyen operates in asafe and secure manner, and to ensure that suppliers uphold the highest ethical standards. The Compliance function
runs a comprehensive Integrity and Conduct Training which is globally mandatory for all employees. This legallyrequired educational refresher ensures all teams and functions are properly informed about relevant developments.
Emphasis is placed on topics such as ethical behavior, internal conduct risks (e.g. whistleblowing, third parties
onboarding practices) and on risk management.

Quantitative information
All ten quantitative templates have been assessed for applicability. It was concluded that templates 3, 6, 7, 8, and 9 are
not applicable as at 31 December 2022:• Template 3 (Banking book - Climate change transition risks): per regulation, alignment metrics will beapplicable for the disclosure only after H1 of fiscal year 2024;• Template 6 (Summary of KPIs on the Taxonomy-aligned exposures), Template 7 (Mitigating actions: Assets
for the calculation of the Green Asset Ratio (GAR), Template 8 (GAR %), and Template 9 (Mitigation actions:
BTAR): per regulation, are only required to be disclosed starting from the end of fiscal year 2023. Information
regarding the economic activities from non-financial corporate is not yet publically available, making thedisclosures in these four templates not yet applicable.
• Template 10 (Other climate change mitigating actions that are not covered in the EU Taxonomy): theidentification of other Climate Change Mitigation (CCM) or Climate Change Adaptation (CCA) activities thatare not taxonomy-aligned (GAR or BTAR) depends on the outcome of the above mentioned templates. Thus,
template 10, if applicable, is expected to be disclosed concurrently with template 6, 7, 8, and 9 at the end of
fiscal year 2023.
The remaining templates which are, per regulation, required to be disclosed in financial year 2022, are discussed in
more detail below.

Template 1: Banking book – climate change transition risk: credit qualityof exposures by sector, emissions and outstanding duration
Template 1 (see Annex ESG 1) gives the stakeholders information about Adyen’ banking book, specifically the
exposures towards non-financial corporate operating in carbon-related sectors and the quality of the exposures. This
template only applies to financial exposures in the form of loans and advances, debt securities, and equity instruments.
Carbon - related sectors are identified through the use of NACE codes associated with the counterparties.
All exposures are then assessed based on their quality and maturity. The quality of the exposures is measured throughthe status of the exposures - whether a loan and advances are performing, stage 2, or non-performing. The exposures
are then grouped based on their maturity, starting with less than 5 years, 5 to 10 years, 10 to 15 years, and longer than
20 years maturity groups. Maturity information is relevant since climate change-related risks may materialize in thelong term. Lastly, scope 1, 2, and 3 emissions of the counterparties must be disclosed in Template 1 (if possible) as aneffort to show the banks’ financed emissions– else, banks are given the option to disclose its plans to provide actual or
estimation of the emission data. Adyen plans on improving data availability to fulfill the mandatory requirement offinanced emission which is only required by financial year 2024.
As at 31st December 2022, Adyen holds EUR 165.3 million of exposures towards non-financial corporates. Of thisamount, EUR 55.5 million is exposed to sectors that highly contribute to climate change which equates to less that 1%of Adyen's total assets. Therefore, Adyen's transitional risk exposure can be deemed immaterial for the Company.

Template 2 – Banking book - Climate change transition risk: Loanscollateralized by immovable property - Energy efficiency of the collateralTemplate 2 aims to show the relevant stakeholders the Adyen’s banking book exposure to loans that are collateralized
by immovable property and its energy efficiency. This template, however, is not applicable for Adyen. As per 31st
December 2022, Adyen does not hold any loan products with physical collateral in its banking book.

Template 4 – Banking book - Climate change transition risk: Exposures
to top 20 carbon-intensive firms

Adyen Transparency and Disclosure Report 2022

34

The purpose of template 4 is to show institutions’ exposures towards the top 20 carbon-intensive companies in theworld. It is complementary to the sectoral approach applied in the previous templates and provides a deeper insightwith more granular data. Adyen does not have any exposures towards any of the companies in the top 20 carbonintensive firms list, therefore, this disclosure is not applicable for Adyen.

Template 5 – Banking book - Climate change physical risk: Exposuressubject to physical risk
The disclosure requirements applied to template 5 is meant to give stakeholders information on exposures in thebanking book (including loans and advances, debt securities and equity instruments not held for trading and not held
for sale) towards non- financial corporates, on loans collateralized with immovable property and on repossessed realestate collateral that are exposed to chronic and acute climate-related hazards. However, similar to the assessments
for template 2, this template is also not applicable for Adyen. On 31 December 2022, Adyen does not hold any loan
product that entails any physical collateral, meaning that Adyen does not experience additional physical risks exposure
from loan collaterals.

Adyen Transparency and Disclosure Report 2022

AnnexesPlease note all annexes are denoted in EUR amounts, unless stated otherwise.

35

Adyen Transparency and Disclosure Report 2022

36

Annex OV1 - Overview of total risk exposure amounts
Template EU OV1Overview of total risk exposure amounts
Total risk exposure amounts (TREA)

Total own funds
requirementsabc31-Dec-22

31-Dec-22

30-Sep-22

1

Credit risk (excluding CCR)

1,152,647,893

1,126,222,896

92,211,831

2

Of which the standardised approach

1,152,647,893

1,126,222,896

92,211,831

3

Of which the Foundation IRB (F-IRB) approach4

Of which slotting approach

EU 4a

Of which equities under the simple risk-weighted approach5

Of which the Advanced IRB (A-IRB) approach

6

Counterparty credit risk - CCR

7

Of which the standardised approach8

Of which internal model method (IMM)

EU 8a

Of which exposures to a CCP

EU 8b

Of which credit valuation adjustment - CVA

9

Of which other CCR

10

Not applicable11

Not applicable12

Not applicable13

Not applicable14

Not applicable

15

Settlement risk

16

Securitisation exposures in the non-trading book (after
the cap)

17

Of which SEC-IRBA approach18

Of which SEC-ERBA (including IAA)

19

Of which SEC-SA approach

EU 19a Of which 1250% / deduction
20

Position, foreign exchange and commodities risks(Market risk)

386,077,587

423,171,446

30,886,207

21

Of which the standardised approach

386,077,587

423,171,446

30,886,207

22

Of which IMA

1,883,388,559

1,372,435,948

150,671,085

1,883,388,559

1,372,435,948

150,671,085

3,422,114,039

2,921,830,290

273,769,123

EU 22a Large exposures
23

Operational risk

EU 23a Of which basic indicator approach
EU 23b Of which standardised approach
EU 23c Of which advanced measurement approach24

Amounts below the thresholds for deduction (subject
to 250% risk weight)

25

Not applicable26

Not applicable27

Not applicable28

Not applicable

29

Total

Adyen Transparency and Disclosure Report 2022

37

Annex KM 1 – Key metrics

33

Template EU KM1
Key metrics template
a

b

c

d

e

31-Dec-22

30-Sep-22

30-Jun-22

31-Mar-22

31-Dec-21

Available own funds (amounts)
1

Common Equity Tier 1 (CET1) capital

1,972,191,130

1,972,429,654

1,683,820,112

1,681,666,080

1,675,810,613

2Tier 1 capital

1,972,191,130

1,972,429,654

1,683,820,112

1,681,666,080

1,675,810,613

3

Total capital

1,972,191,130

1,972,429,654

1,683,820,112

1,681,666,080

1,675,810,613

3,422,114,039

2,921,830,290

2,852,492,633

2,739,325,665

2,600,447,424

67.51 %

59.03 %

61.39 %

64.44 %

Risk-weighted exposure amounts
4

Total risk exposure amount

Capital ratios (as a percentage of risk-weighted exposure amount)5

Common Equity Tier 1 ratio (%)

57.63 %

6

Tier 1 ratio (%)

57.63 %

67.51 %

59.03 %

61.39 %

64.44 %

7

Total capital ratio (%)

57.63 %

67.51 %

59.03 %

61.39 %

64.44 %

Additional own funds requirements to address risks other than the risk of excessive leverage (as a percentage of risk-weighted
exposure amount)
EU 7aAdditional own funds requirements to address risks
other than the risk of excessive leverage (%)

4.50 %

8.50 %

7.20 %

7.20 %

7.20 %

EU 7bof which: to be made up of CET1 capital (percentage
points)2.60 %

4.80 %

4.05 %

4.05 %

4.05 %

EU 7c

of which: to be made up of Tier 1 capital (percentage
points)3.40 %

6.40 %

5.40 %

5.40 %

5.40 %

EU 7d

Total SREP own funds requirements (%)

12.50 %

16.50 %

15.20 %

15.20 %

15.20 %

Combined buffer and overall capital requirement (as a percentage of risk-weighted exposure amount)8

Capital conservation buffer (%)

2.50 %

2.50 %

2.50 %

2.50 %

2.50 %

EU 8a

Conservation buffer due to macro-prudential orsystemic risk identified at the level of a Member State
(%)

—%

—%

—%

—%

—%

9

Institution specific countercyclical capital buffer (%)

0.05 %

0.01%

0.01%

0.01%

0.01%

EU 9a

Systemic risk buffer (%)

—%

—%

—%

—%

—%

10

Global Systemically Important Institution buffer (%)

—%

—%

—%

—%

—%

EU 10a Other Systemically Important Institution buffer (%)

—%

—%

—%

—%

—%

2.55 %

2.51 %

2.51 %

2.51 %

2.51 %

15.05 %

19.01 %

17.71 %

17.71 %

17.71 %

42.58 %

48.50 %

41.32 %

43.68 %

46.73 %

7,509,698,409

6,881,882,751

6,555,904,166

5,992,891,239

5,702,826,270

26.26 %

28.66 %

25.68 %

28.06 %

29.39 %

11

Combined buffer requirement (%)

EU 11a Overall capital requirements (%)
12

CET1 available after meeting the total SREP own
funds requirements (%)
Leverage ratio

13

Total exposure measure

14

Leverage ratio (%)

Additional own funds requirements to address the risk of excessive leverage (as a percentage of total exposure measure)EU 14aAdditional own funds requirements to address the riskof excessive leverage (%)

0%

0%

0%

0%

0%

EU 14bof which: to be made up of CET1 capital (percentage
points)

0%

0%

0%

0%

0%

3%

3%

3%

3%

3%

EU 14c Total SREP leverage ratio requirements (%)

Leverage ratio buffer and overall leverage ratio requirement (as a percentage of total exposure measure)EU 14d Leverage ratio buffer requirement (%)

0%

0%

0%

0%

0%

EU 14e Overall leverage ratio requirement (%)

3%

3%

3%

3%

3%

33

As per 18 July 2022 DNB and Adyen agreed a new calculation method for the LCR ratio on the basis of the application of Article 26 LCR DA. Adyen reports its LCR on the basisof this revised calculation from July 2022 onwards. For more information see Liquidity and funding section.

Adyen Transparency and Disclosure Report 2022

38

Template EU KM1
Key metrics template
a

b

c

d

e

31-Dec-22

30-Sep-22

30-Jun-22

31-Mar-22

31-Dec-21

2,532,534,559

2,293,383,900

1,998,484,154

2,955,624,677

2,819,916,652

EU 16a Cash outflows - Total weighted value

489,699,888

372,065,447

352,835,680

204,082,143

196,318,169

EU 16b Cash inflows - Total weighted value

893,556,640

734,434,581

737,877,083

1,794,166,585

1,774,897,425

16

Total net cash outflows (adjusted value)

122,424,972

93,016,362

88,208,920

51,020,536

49,079,542

17Liquidity coverage ratio (%)

2,068.64 %2,465.57 %2,265.63 %5,793.01 %5,745.61 %Liquidity Coverage Ratio
15

Total high-quality liquid assets (HQLA) (Weighted
value)*Net Stable Funding Ratio
18

Total available stable funding

2,651,784,071

2,576,027,037

2,241,581,943

2,246,694,869

2,226,819,159

19

Total required stable funding

968,913,862

983,935,169

984,227,680

902,555,487

784,953,974

20

NSFR ratio (%)

273.69 %261.81 %227.75 %248.93 %283.69 %*Please note that quarter-end numbers are reported here.

Adyen Transparency and Disclosure Report 2022

39

Annex EU CCyB1 - Geographical distribution of credit exposures relevant for the calculation of thecountercyclical buffer
Template EU CCyB1
Geographical distribution of credit exposures relevant for the calculation of the countercyclical bufferabGeneral credit exposures
Exposurevalue underthestandardised
approach
010

Country

0101

AE

94,725

Exposurevalue underthe IRB
approach

c

d

e

f

g

h

Relevant credit exposures –Market risk

Securitisation
exposures
Sum of long
Value of
Exposure
and short
trading bookvalue forpositions of
exposures for
nontrading bookinternal
trading
exposures formodels
book
SA

i

j

k

l

m

Total

Riskweighted
exposureamounts

Own fundrequirements
weights(%)

Countercycli
cal buffer
rate
(%)

Own fund requirements

Total exposure
value

Relevant
credit risk
exposures Credit risk

94,725

9,990

Relevant
creditexposures –Market risk

Relevant
creditexposures –Securitisatio
n positions in
the nontrading book

9,990

124,8750.01 %

0102

AI

275

275

29

29

363

—%

0103

AR

176,591

176,591

18,545

18,545

231,8130.03 %

0104

AT

892,116

892,116

78,692

78,692

983,650

0.11 %

0105

AU

7,735,088

7,735,088

673,197

673,197

8,414,963

0.94 %

0106

BE

33,717,791

33,717,791

828,102828,102

10,351,275

1.16 %

0107

BG

330

330

40

40

500

—%

0108

BR

1,978,846

1,978,846

193,303

193,3032,416,288

0.27 %

0109

CA

1,369,852

1,369,852

129,150

129,150

1,614,375

0.18 %

0110

CH

2,758,092

2,758,092

228,185

228,1852,852,313

0.32 %

0111

CL

17,703

17,703

2,081

2,081

26,013

—%

0112

CN

4,328,044

4,328,044

354,171354,171

4,427,138

0.49 %

0113

CO

529

529

63

63

788

—%

0114

CY

19

19

2

2

25

—%

0115

CZ

19,613

19,6130116

DE14,557,992

14,557,992

1,246,631

1,246,631

15,582,888

1.74 %

0117

DK

296,501

296,501

30,28730,287

378,5880.04 %

0

1.00%

1.50%

2.00%

Adyen Transparency and Disclosure Report 2022

ab

General credit exposures
Exposurevalue underthestandardised
approach

Exposurevalue underthe IRB
approach

40

c

d

e

f

g

h

Relevant credit exposures –Market risk

Securitisation
exposures
Sum of long
Value of
Exposure
and short
trading bookvalue forpositions of
exposures for
nontrading bookinternal
trading
exposures formodels
book
SA

i

j

k

l

m

Total

Riskweighted
exposureamounts

Own fundrequirements
weights(%)

Countercycli
cal buffer
rate
(%)

1.00%

Own fund requirements

Total exposure
value

Relevant
credit risk
exposures Credit risk

Relevant
creditexposures –Market risk

Relevant
creditexposures –Securitisatio
n positions in
the nontrading book

0118

EE

2,672,224

2,672,224

199,203199,2032,490,038

0.28 %

0119

EG

105

105

8

8

100

—%

0120

ES

1,494,808

1,494,808

143,587

143,587

1,794,838

0.20 %

0121

FI

1,155,716

1,155,716

93,162

93,162

1,164,525

0.13 %

0122

FR

4,113,506

4,113,506

362,196

362,196

4,527,450

0.51 %

0123

GB

80,190,849

80,190,849

3,105,222

3,105,222

38,815,275

4.33 %

0124

GE

28,032

28,032

3,143

3,143

39,288

—%

0125

GG

24,99924,999

2,000

2,000

25,000

—%

0126

GR

4,746

4,746

380

380

4,750

—%

0127

HK

549,753

549,753

62,08262,082776,025

0.09 %

0128

HR

597

597

48

48

600

—%

0129

HU

353,952

353,952

36,60536,605457,563

0.05 %

0130

ID

1,168,099

1,168,099

95,205

95,205

1,190,063

0.13 %

0131

IE

381,382

381,382

38,701

38,701

483,763

0.05 %

0132

IL

930

930

74

74

925

—%

0133

IN

2,346

2,346

274

274

3,425

—%

0134

IS

6,055

6,055

700

700

8,750

—%

0135

IT

151,587

151,587

13,066

13,066

163,325

0.02 %

0136

JP

1,257,646

1,257,646

103,060

103,060

1,288,250

0.14 %

0137

KP

360

360

34

34

425

—%

0138

KR

18,937

18,937

1,750

1,750

21,875

—%

0139

LT

992,778992,778

79,71979,719996,488

0.11 %

0140

LU

32,75932,759

3,517

3,517

43,963

—%

1.00%

1.00%

2.00%

0.50%

Adyen Transparency and Disclosure Report 2022

ab

General credit exposures
Exposurevalue underthestandardised
approach

Exposurevalue underthe IRB
approach

41

c

d

e

f

g

h

Relevant credit exposures –Market risk

Securitisation
exposures
Sum of long
Value of
Exposure
and short
trading bookvalue forpositions of
exposures for
nontrading bookinternal
trading
exposures formodels
book
SA

i

j

k

l

m

Total

Riskweighted
exposureamounts

Own fundrequirements
weights(%)

Countercycli
cal buffer
rate
(%)

Own fund requirements

Total exposure
value

Relevant
credit risk
exposures Credit risk

Relevant
creditexposures –Market risk

Relevant
creditexposures –Securitisatio
n positions in
the nontrading book

0141

LV

4,482

4,482

357

357

4,463

—%

0142

MA

3,773

3,773

414

414

5,175

—%

0143

MT

3,748

3,748

293

293

3,663

—%

0144

MX

2,063,394

2,063,394

209,269

209,269

2,615,863

0.29 %

0145

MY595,648595,648

51,35751,357

641,963

0.07 %

0146

NL

710,611,531

710,611,531

56,901,710

56,901,710

711,271,375

79.40 %

0147

NO

124,145

124,145

10,33910,339129,2380.01 %

0148

NZ

11,35911,359910

910

11,375

—%

0149

PH

199,778

199,778

18,06318,063

225,7880.03 %

0150

PL

106,738

106,738

8,797

8,797

109,9630.01 %

0151

PT

236,140

236,140

18,882

18,882

236,0250.03 %

0152

SE

1,490,265

1,490,265

121,720

121,720

1,521,500

0.17 %

0153

SG

1,377,604

1,377,604

128,805

128,805

1,610,063

0.18 %

0154

SK

1,121

1,121

134

134

1,675

—%

0155

TH

2,224

2,224

243

243

3,038

—%

0156

TR

670,030

670,030

53,60253,602670,0250.07 %

0157

TW

93

93

7

7

88

—%

0158

US

122,224,927

122,224,927

5,997,125

5,997,125

74,964,063

8.37 %

0159

VN

97,557

97,557

9,012

9,012

112,650

0.01 %

0160

ZA

3,432

3,432

396

396

4,950

—%

020

Total

1,002,374,262

1,002,374,262

71,667,641

71,667,641

895,845,502

100.00 %

2.00%

1.00%

1.00%

Adyen Transparency and Disclosure Report 2022

42

Annex EU CCyB2 - Amount of institution-specific countercyclical capital
bufferTemplate EU CCyB2
Amount of institution-specific countercyclical capitala
1 Total risk exposure amount
2 Institution specific countercyclical capital buffer rate
3 Institution specific countercyclical capital buffer requirement

3,422,114,039
0.05 %
1,706,010

Adyen Transparency and Disclosure Report 2022

43

Annex EU LI1 - Differences between the accounting scope and the scope of prudential consolidation andmapping of financial statement categories with regulatory risk categories
Template EU LI1
Differences between the accounting scope and the scope of prudential consolidation and mapping of financial statement categories with regulatory risk categoriesab

Carrying values asreported in publishedfinancial statements

Carrying values underscope of prudential
consolidation

c

d

e

f

Subject to the credit
risk framework

Subject to the CCR
framework

Subject to thesecuritisation
framework

Subject to the market Not subject to own funds requirements
risk frameworkor subject to deduction from own
funds

Breakdown by asset classes according to the balance sheet in the published financial statements
1

Total assets

7,616,351,194

7,616,351,194

7,608,210,795

7,608,210,795

Breakdown by liability classes according to the balance sheet in the published financial statements
2

Total liabilities

5,204,232,288

5,204,232,288gCarrying values of items

5,204,232,288

Adyen Transparency and Disclosure Report 2022

44

Annex EU LI2 - Main sources of differences between regulatory exposure amounts and carrying values infinancial statements
Template EU LI2Main sources of differences between regulatory exposure amounts and carrying values in financial statements
a

b

c

d

e

CCR framework

Market risk
framework

Items subject toTotal
1

Assets carrying value amount under the scope of prudential consolidation (as per template LI1)

7,616,351,194

2

Liabilities carrying value amount under the scope of prudential consolidation (as per template LI1)

5,204,232,288

3

Total net amount under the scope of prudential consolidation

4

Off-balance-sheet amounts

5

Differences in valuations

6

Differences due to different netting rules, other than those already included in row 2

7

Differences due to consideration of provisions

8

Differences due to the use of credit risk mitigation techniques (CRMs)

9

Differences due to credit conversion factors

10

Differences due to Securitisation with risk transfer

11

Other differences

12

Exposure amounts considered for regulatory purposes

Credit risk
framework

Securitisation
framework

7,608,210,795

7,616,351,194

2,412,118,906

7,608,210,795

2,412,118,906

7,616,351,194

7,608,210,795

2,412,118,906

5,204,232,288

Adyen Transparency and Disclosure Report 2022

45

Annex EU LI3 - Outline of the differences in the scopes of consolidation (entity by entity)
Template EU LI3
Outline of the differences in the scopes of consolidation (entity by entity)abName of the entity

Method of accounting
consolidationcdFull consolidation

Proportional
consolidation

e

f

g

Method of prudential consolidation
Equity method

Neither consolidated
nor deductedhDescription of the entity

Deducted

Adyen N.V

Full consolidation

X

Credit institution

Adyen International B.V.

Full consolidation

X

Financial institution

Adyen UK Limited

Full consolidation

X

Financial institution

Adyen Brazil Ltda

Full consolidation

X

Financial institution

Adyen Services Inc.

Full consolidation

X

Financial institution

Adyen Canada Ltd.

Full consolidation

X

Financial institution

Adyen Singapore PTE LTD.

Full consolidation

X

Financial institution

Adyen Korea Chusik Hoesa

Full consolidation

X

Financial institution

Adyen Mexico S.A. de C.V.

Full consolidation

X

Financial institution

Adyen Australia PTY Limited

Full consolidation

X

Financial institution

Adyen (China) Software Technology Co.
Ltd.

Full consolidation

X

Financial institution

Adyen New Zealand Ltd.

Full consolidation

X

Financial institution

Adyen Malaysia Sdn. Bhd.

Full consolidation

X

Financial institution

Adyen Hong Kong Limited

Full consolidation

X

Financial institution

Adyen India Technology Services Private
LimitedFull consolidation

X

Financial institution

Adyen Japan K.K.

Full consolidation

X

Financial institution

Adyen MEA FZ-LLC

Full consolidation

X

Financial institution

Adyen Middle East Limited

Full consolidation

X

Financial institution

Adyen Transparency and Disclosure Report 2022

46

Annex EU CC1 - Composition of regulatory own funds34

Template EU CC1
Composition of regulatory own funds(a)Amounts
Common Equity Tier 1 (CET1) capital: instruments and reserves
1

Capital instruments and the related share premium accountsof which: Paid-up capitalof which: Share premium2Retained earnings

3

Accumulated other comprehensive income (and other reserves)

EU-3a

Funds for general banking risk

4

Amount of qualifying items referred to in Article 484 (3) CRR and the related share premium
accounts subject to phase out from CET1

5

Minority interests (amount allowed in consolidated CET1)

EU-5a

Independently reviewed interim profits net of any foreseeable charge or dividend

6

Common Equity Tier 1 (CET1) capital before regulatory adjustments

352,708,628.00
309,863.00
352,398,765.00
1,338,717,786.00
130,977,715.00

282,136,664.00
2,104,540,793.00

Common Equity Tier 1 (CET1) capital: regulatory adjustments
7

Additional value adjustments (negative amount)

8

Intangible assets (net of related tax liability) (negative amount)9

Not applicable

10

Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability where the conditions in Article 38 (3) CRR are met) (negative
amount)11

Fair value reserves related to gains or losses on cash flow hedges of financial instruments that are
not valued at fair value

12

Negative amounts resulting from the calculation of expected loss amounts

13

Any increase in equity that results from securitised assets (negative amount)

14

Gains or losses on liabilities valued at fair value resulting from changes in own credit standing

15

Defined-benefit pension fund assets (negative amount)16

Direct, indirect and synthetic holdings by an institution of own CET1 instruments (negative amount)17

Direct, indirect and synthetic holdings of the CET 1 instruments of financial sector entities where
those entities have reciprocal cross holdings with the institution designed to inflate artificially theown funds of the institution (negative amount)18

Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector
entities where the institution does not have a significant investment in those entities (amount above
10% threshold and net of eligible short positions) (negative amount)19

Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector
entities where the institution has a significant investment in those entities (amount above 10%threshold and net of eligible short positions) (negative amount)20

Not applicable

EU-20aExposure amount of the following items which qualify for a RW of 1250%, where the institution opts
for the deduction alternative

EU-20bof which: qualifying holdings outside the financial sector (negative amount)

EU-20cof which: securitisation positions (negative amount)

EU-20dof which: free deliveries (negative amount)21

Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related
tax liability where the conditions in Article 38 (3) CRR are met) (negative amount)

22

Amount exceeding the 17,65% threshold (negative amount)23of which: direct, indirect and synthetic holdings by the institution of the CET1 instruments offinancial sector entities where the institution has a significant investment in those entities

34(47,264.00)(8,140,398.00)(124,162,000.00)

Upon formal confirmation, Adyen's net profit for H2 2022 (EUR 282 million) may be included in its CET1 calculation. At that point, Adyen's CET1 capital becomes EUR 2,254
million.

Adyen Transparency and Disclosure Report 2022

47

(a)Amounts24

Not applicable25

of which: deferred tax assets arising from temporary differencesEU-25aLosses for the current financial year (negative amount)EU-25bForeseeable tax charges relating to CET1 items except where the institution suitably adjusts theamount of CET1 items insofar as such tax charges reduce the amount up to which those items may
be used to cover risks or losses (negative amount)26

Not applicable27

Qualifying AT1 deductions that exceed the AT1 items of the institution (negative amount)

27a

Other regulatory adjustments

28

Total regulatory adjustments to Common Equity Tier 1 (CET1)(132,349,662.00)

29

Common Equity Tier 1 (CET1) capital

1,972,191,131.00

Additional Tier 1 (AT1) capital: instruments
30

Capital instruments and the related share premium accounts

31of which: classified as equity under applicable accounting standards

32of which: classified as liabilities under applicable accounting standards

33

Amount of qualifying items referred to in Article 484 (4) CRR and the related share premium
accounts subject to phase out from AT1

EU-33aAmount of qualifying items referred to in Article 494a(1) CRR subject to phase out from AT1

EU-33bAmount of qualifying items referred to in Article 494b(1) CRR subject to phase out from AT1

34

Qualifying Tier 1 capital included in consolidated AT1 capital (including minority interests notincluded in row 5) issued by subsidiaries and held by third parties

35

of which: instruments issued by subsidiaries subject to phase out

36

Additional Tier 1 (AT1) capital before regulatory adjustments

Additional Tier 1 (AT1) capital: regulatory adjustments
37

Direct, indirect and synthetic holdings by an institution of own AT1 instruments (negative amount)38

Direct, indirect and synthetic holdings of the AT1 instruments of financial sector entities where
those entities have reciprocal cross holdings with the institution designed to inflate artificially theown funds of the institution (negative amount)39

Direct, indirect and synthetic holdings of the AT1 instruments of financial sector entities where theinstitution does not have a significant investment in those entities (amount above 10% threshold andnet of eligible short positions) (negative amount)40

Direct, indirect and synthetic holdings by the institution of the AT1 instruments of financial sector
entities where the institution has a significant investment in those entities (net of eligible shortpositions) (negative amount)41

Not applicable

42

Qualifying T2 deductions that exceed the T2 items of the institution (negative amount)

42a

Other regulatory adjustments to AT1 capital

43

Total regulatory adjustments to Additional Tier 1 (AT1) capital

44

Additional Tier 1 (AT1) capital

45

Tier 1 capital (T1 = CET1 + AT1)

Tier 2 (T2) capital: instruments
46

Capital instruments and the related share premium accounts

47

Amount of qualifying items referred to in Article 484(5) CRR and the related share premium
accounts subject to phase out from T2 as described in Article 486(4) CRR

EU-47aAmount of qualifying items referred to in Article 494a(2) CRR subject to phase out from T2

EU-47bAmount of qualifying items referred to in Article 494b(2) CRR subject to phase out from T2

48

Qualifying own funds instruments included in consolidated T2 capital (including minority interests
and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties

49

of which: instruments issued by subsidiaries subject to phase out

50

Credit risk adjustments

1,972,191,131.00

Adyen Transparency and Disclosure Report 2022

48

(a)Amounts
51

Tier 2 (T2) capital before regulatory adjustments

Tier 2 (T2) capital: regulatory adjustments
52

Direct, indirect and synthetic holdings by an institution of own T2 instruments and subordinatedloans (negative amount)53

Direct, indirect and synthetic holdings of the T2 instruments and subordinated loans of financial
sector entities where those entities have reciprocal cross holdings with the institution designed toinflate artificially the own funds of the institution (negative amount)54

Direct, indirect and synthetic holdings of the T2 instruments and subordinated loans of financial
sector entities where the institution does not have a significant investment in those entities (amountabove 10% threshold and net of eligible short positions) (negative amount)54a

Not applicable

55

Direct, indirect and synthetic holdings by the institution of the T2 instruments and subordinatedloans of financial sector entities where the institution has a significant investment in those entities(net of eligible short positions) (negative amount)56

Not applicable

EU-56aQualifying eligible liabilities deductions that exceed the eligible liabilities items of the institution(negative amount)

EU-56bOther regulatory adjustments to T2 capital

57

Total regulatory adjustments to Tier 2 (T2) capital

58

Tier 2 (T2) capital

59

Total capital (TC = T1 + T2)

1,972,191,131.00

60

Total Risk exposure amount

3,422,114,039.00

Capital ratios and requirements including buffers
61

Common Equity Tier 1 capital

57.63 %

62

Tier 1 capital

57.63 %

63

Total capital

57.63 %

64

Institution CET1 overall capital requirements

9.65 %

65of which: capital conservation buffer requirement

2.50 %

66

of which: countercyclical capital buffer requirement—%67

of which: systemic risk buffer requirement—%

EU-67aof which: Global Systemically Important Institution (G-SII) or Other Systemically Important
Institution (O-SII) buffer requirement—%

EU-67bof which: additional own funds requirements to address the risks other than the risk of excessive
leverage—%

68

Common Equity Tier 1 capital (as a percentage of risk exposure amount) available after meeting theminimum capital requirements

National minima (if different from Basel III)69

Not applicable70

Not applicable71

Not applicable

Amounts below the thresholds for deduction (before risk weighting)72

Direct and indirect holdings of own funds and eligible liabilities of financial sector entities where theinstitution does not have a significant investment in those entities (amount below 10% threshold andnet of eligible short positions)73

Direct and indirect holdings by the institution of the CET1 instruments of financial sector entities
where the institution has a significant investment in those entities (amount below 17.65% thresholds
and net of eligible short positions)74

Not applicable

75

Deferred tax assets arising from temporary differences (amount below 17,65% threshold, net of
related tax liability where the conditions in Article 38 (3) CRR are met)

45.13 %

Adyen Transparency and Disclosure Report 2022

49

(a)Amounts
Applicable caps on the inclusion of provisions in Tier 2
76

Credit risk adjustments included in T2 in respect of exposures subject to standardised approach(prior to the application of the cap)77

Cap on inclusion of credit risk adjustments in T2 under standardised approach78

Credit risk adjustments included in T2 in respect of exposures subject to internal ratings-based
approach (prior to the application of the cap)

79

Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach

Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2014 and 1 Jan
2022)
80

Current cap on CET1 instruments subject to phase out arrangements

81

Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)

82

Current cap on AT1 instruments subject to phase out arrangements

83

Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)

84

Current cap on T2 instruments subject to phase out arrangements

85

Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)

Adyen Transparency and Disclosure Report 2022

50

Annex EU CCA - Main features of regulatory own funds instruments andeligible liabilities instruments
Template EU CCA
Main features of regulatory own funds instruments and eligible liabilities instrumentsaQualitative or quantitative information - Free
format1

IssuerAdyen N.V.

2

Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private placement)

NL0012969182

2a

Public or private placement

Public3

Governing law(s) of the instrument

The shares are governed by the laws of theNetherlands

3aContractual recognition of write down and conversion powers of resolution
authorities

N/A

Regulatory treatment
4

Current treatment taking into account, where applicable, transitional CRR rules

Common Equity Tier 1

5

Post-transitional CRR rules

Common Equity Tier 1

6

Eligible at solo/(sub-)consolidated/ solo&(sub-)consolidated

Consolidated

7

Instrument type (types to be specified by each jurisdiction)

CET1 as published in the EBA list (art. 26(3))

8Amount recognised in regulatory capital or eligible liabilities (Currency in million, as of
80,000,000
most recent reporting date)

9

Nominal amount of instrument

0.01

EU-9a

Issue price

240

EU-9b

Redemption priceNot applicable

10

Accounting classification

Shareholders' equity

11

Original date of issuance

13 June 201812

Perpetual or dated

Perpetual13

Original maturity dateNo maturity

14

Issuer call subject to prior supervisory approval

No

15

Optional call date, contingent call dates and redemption amountNot applicable

16

Subsequent call dates, if applicableNot applicable

Coupons / dividends
17

Fixed or floating dividend/coupon

Floating

18

Coupon rate and any related index

Not applicable

19

Existence of a dividend stopperNo

EU-20aFully discretionary, partially discretionary or mandatory (in terms of timing)

Fully discretionary - no dividend pushers,
dividend stoppers or ACSM

EU-20bFully discretionary, partially discretionary or mandatory (in terms of amount)

Fully discretionary

21

Existence of step up or other incentive to redeem

No22

Noncumulative or cumulative

Non-cumulative

23

Convertible or non-convertible

Non-convertible

24

If convertible, conversion trigger(s)Not applicable25

If convertible, fully or partially

Not applicable26

If convertible, conversion rate

Not applicable27

If convertible, mandatory or optional conversion

Not applicable28

If convertible, specify instrument type convertible into

Not applicable29

If convertible, specify issuer of instrument it converts into

Not applicableAdyen Transparency and Disclosure Report 2022

51a
Qualitative or quantitative information - Free
format30

Write-down features

No31

If write-down, write-down trigger(s)Not applicable32

If write-down, full or partial

Not applicable33

If write-down, permanent or temporary

Not applicable34

If temporary write-down, description of write-up mechanism

Not applicable

34a

Type of subordination (only for eligible liabilities)

Subordinated to all claims

EU-34b

Ranking of the instrument in normal insolvency proceedings

Subordinated to all claims

35

Position in subordination hierarchy in liquidation (specify instrument type immediately
Subordinated to all claims
senior to instrument)

36

Non-compliant transitioned features

No37

If yes, specify non-compliant features

Not applicable

37a

Link to the full term and conditions of the instrument (signposting)https://www.adyen.com/investor-relations/financials

Adyen Transparency and Disclosure Report 2022

52

Annex EU LR1 - LRSum: Summary reconciliation of accounting assets
and leverage ratio exposures
Template EU LR1 - LRSum
Summary reconciliation of accounting assets and leverage ratio exposuresaApplicable amount1

Total assets as per published financial statements

7,616,351,194

2Adjustment for entities which are consolidated for accounting purposes but are outside the scope ofprudential consolidation

3(Adjustment for securitised exposures that meet the operational requirements for the recognition ofrisk transference)4(Adjustment for temporary exemption of exposures to central banks (if applicable))5(Adjustment for fiduciary assets recognised on the balance sheet pursuant to the applicableaccounting framework but excluded from the total exposure measure in accordance with point (i) of
Article 429a(1) CRR)

6

Adjustment for regular-way purchases and sales of financial assets subject to trade date accounting

7

Adjustment for eligible cash pooling transactions

8

Adjustment for derivative financial instruments

9

Adjustment for securities financing transactions (SFTs)

10

Adjustment for off-balance sheet items (ie conversion to credit equivalent amounts of off-balance
sheet exposures)

11(Adjustment for prudent valuation adjustments and specific and general provisions which have
reduced Tier 1 capital)

EU-11a(Adjustment for exposures excluded from the total exposure measure in accordance with point (c) of
Article 429a(1) CRR)

EU-11b(Adjustment for exposures excluded from the total exposure measure in accordance with point (j) of
Article 429a(1) CRR)

12

Other adjustments(132,302,398)

13

Total exposure measure

7,509,698,409

25,649,614

Adyen Transparency and Disclosure Report 2022

53

Annex EU LR2 - LRCom: Leverage ratio common disclosure
Template EU LR2 - LRCom
Leverage ratio common disclosure
CRR leverage ratio exposuresab

31-Dec-22

30-Sep-22

On-balance sheet exposures (excluding derivatives and SFTs)
1

On-balance sheet items (excluding derivatives, SFTs, but including collateral)

7,616,351,194

6,982,100,675

2

Gross-up for derivatives collateral provided, where deducted from the balance sheet
assets pursuant to the applicable accounting framework3(Deductions of receivables assets for cash variation margin provided in derivatives
transactions)

4(Adjustment for securities received under securities financing transactions that arerecognised as an asset)

5(General credit risk adjustments to on-balance sheet items)

6(Asset amounts deducted in determining Tier 1 capital)(132,302,398)(114,750,369)

7

Total on-balance sheet exposures (excluding derivatives and SFTs)

7,484,048,796

6,867,350,306

Derivative exposures
8

Replacement cost associated with SA-CCR derivatives transactions (ie net of eligible
cash variation margin)

EU-8a

Derogation for derivatives: replacement costs contribution under the simplified
standardised approach

9

Add-on amounts for potential future exposure associated with SA-CCR derivatives
transactions

EU-9a

Derogation for derivatives: Potential future exposure contribution under the simplified
standardised approach

EU-9b

Exposure determined under Original Exposure Method

10(Exempted CCP leg of client-cleared trade exposures) (SA-CCR)

EU-10a(Exempted CCP leg of client-cleared trade exposures) (simplified standardised
approach)

EU-10b(Exempted CCP leg of client-cleared trade exposures) (Original Exposure Method)

11

Adjusted effective notional amount of written credit derivatives

12(Adjusted effective notional offsets and add-on deductions for written credit derivatives)

13

Total derivatives exposures

-

-

-

-

Securities financing transaction (SFT) exposures
14

Gross SFT assets (with no recognition of netting), after adjustment for sales accounting
transactions

15(Netted amounts of cash payables and cash receivables of gross SFT assets)

16

Counterparty credit risk exposure for SFT assets

EU-16aDerogation for SFTs: Counterparty credit risk exposure in accordance with Articles
429e(5) and 222 CRR

17

Agent transaction exposures

EU-17a(Exempted CCP leg of client-cleared SFT exposure)18

Total securities financing transaction exposures

Other off-balance sheet exposures
19

Off-balance sheet exposures at gross notional amount

20(Adjustments for conversion to credit equivalent amounts)

21(General provisions deducted in determining Tier 1 capital and specific provisions
associated with off-balance sheet exposures)

22

Off-balance sheet exposures

25,649,614

14,532,445

25,649,614

14,532,445

Adyen Transparency and Disclosure Report 2022

54

CRR leverage ratio exposuresab

31-Dec-22

30-Sep-22

Excluded exposures
EU-22a(Exposures excluded from the total exposure measure in accordance with point (c) of
Article 429a(1) CRR)

EU-22b(Exposures exempted in accordance with point (j) of Article 429a(1) CRR (on and offbalance sheet))

EU-22c(Excluded exposures of public development banks (or units) - Public sector investments)

EU-22d(Excluded exposures of public development banks (or units) - Promotional loans)

EU-22e(Excluded passing-through promotional loan exposures by non-public developmentbanks (or units))

EU-22f(Excluded guaranteed parts of exposures arising from export credits)

EU-22g(Excluded excess collateral deposited at triparty agents)

EU-22h(Excluded CSD related services of CSD/institutions in accordance with point (o) of
Article 429a(1) CRR)

EU-22i(Excluded CSD related services of designated institutions in accordance with point (p) of
Article 429a(1) CRR)

EU-22j(Reduction of the exposure value of pre-financing or intermediate loans)

EU-22k(Total exempted exposures)--

Capital and total exposure measure
23

Tier 1 capital

1,972,191,130

1,972,429,654

24

Total exposure measure

7,509,698,409

6,881,882,751

Leverage ratio
25

Leverage ratio (%)

26.26 %

28.66 %

EU-25

Leverage ratio (excluding the impact of the exemption of public sector investments andpromotional loans) (%)

26.26 %

28.66 %

25a

Leverage ratio (excluding the impact of any applicable temporary exemption of central
bank reserves) (%)

26.26 %

28.66 %

26

Regulatory minimum leverage ratio requirement (%)

3%

3%

EU-26aAdditional own funds requirements to address the risk of excessive leverage (%)

0%0%EU-26bof which: to be made up of CET1 capital

0%

0%

27

Leverage ratio buffer requirement (%)

0%0%

EU-27aOverall leverage ratio requirement (%)

3%

3%

N/A

N/A

Choice on transitional arrangements and relevant exposures
EU-27b

Choice on transitional arrangements for the definition of the capital measure

Disclosure of mean values
28

Mean of daily values of gross SFT assets, after adjustment for sale accounting
transactions and netted of amounts of associated cash payables and cash receivable

-

-

29

Quarter-end value of gross SFT assets, after adjustment for sale accounting
transactions and netted of amounts of associated cash payables and cash receivables

-

-

30

Total exposure measure (including the impact of any applicable temporary exemption ofcentral bank reserves) incorporating mean values from row 28 of gross SFT assets (after
adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables)

7,509,698,409

6,881,882,751

30a

Total exposure measure (excluding the impact of any applicable temporary exemption ofcentral bank reserves) incorporating mean values from row 28 of gross SFT assets (after
adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables)

7,509,698,409

6,881,882,751

Adyen Transparency and Disclosure Report 2022

55

CRR leverage ratio exposuresab

31-Dec-22

30-Sep-22

31

Leverage ratio (including the impact of any applicable temporary exemption of central
bank reserves) incorporating mean values from row 28 of gross SFT assets (after
adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables)

26.26 %

28.66 %

31a

Leverage ratio (excluding the impact of any applicable temporary exemption of central
bank reserves) incorporating mean values from row 28 of gross SFT assets (after
adjustment for sale accounting transactions and netted of amounts of associated cash
payables and cash receivables)

26.26 %

28.66 %

Adyen Transparency and Disclosure Report 2022

56

Annex EU LR3 - LRSpl: Split-up of on balance sheet exposures
Template EU LR3 - LRSpl
Split-up of on balance sheet exposure (excluding derivatives, SFTs and exempted exposures)a
CRR leverage ratio
exposures
EU-1

Total on-balance sheet exposures (excluding derivatives, SFTs, and exempted exposures), of
which:

EU-2

Trading book exposures

EU-3

Banking book exposures, of which:

EU-4

Covered bonds

EU-5

Exposures treated as sovereigns

EU-6

Exposures to regional governments, MDB, international organisations and PSE, not treated as sovereigns

EU-7

Institutions

EU-8

Secured by mortgages of immovable properties

EU-9

Retail exposures

EU-10

Corporates

427,526,320

EU-11

Exposures in default

23,006,708

EU-12

Other exposures (e.g. equity, securitisations, and other non-credit obligation assets)

388,901,583

7,608,210,796

7,608,210,796

4,595,560,775

2,173,215,410

Adyen Transparency and Disclosure Report 2022

57

Annex EU LIQ1 – Quantitative information of LCR

35

Template EU LIQ1
Quantitative information of LCR
a

b

c

d

e

f

Total unweighted value (average)
Quarter ending on (DD Month YYY)

EU 1a
EU 1b

Number of data points used in the calculation of
averages

31-Dec-22

30-Sep-22
330-Jun-223gh

Total weighted value (average)
31-Mar-22
3

31-Dec-22
330-Sep-22

30-Jun-22

31-Mar-22

3

3

3

3

2,454,064,863

2,172,442,591

2,716,208,562

2,976,531,006

HIGH-QUALITY LIQUID ASSETS
1

Total high-quality liquid assets (HQLA)CASH - OUTFLOWS
2Retail deposits and deposits from small businesscustomers, of which:

3

Stable deposits

4Less stable deposits

5

Unsecured wholesale funding

6

Operational deposits (all counterparties) and deposits in
networks of cooperative banks

982,682,488.58

884,993,571.40

851,744,563.37

839,126,596.87

227,209,521.64

204,267,930.53

196,302,635.01

193,641,114.50

7Non-operational deposits (all counterparties)

39,220,007.71

40,504,437.85

13,865,233.96—

39,220,007.71

40,504,437.85

13,865,233.96—

8

Unsecured debt

9

Secured wholesale funding

10

Additional requirements

11

Outflows related to derivative exposures and othercollateral requirements

12

Outflows related to loss of funding on debt products

13

Credit and liquidity facilities

14

Other contractual funding obligations

521,733,041.97

369,590,096.20

300,168,756.32

236,363,504.87

180,745,167.71

40,497,349.99

40,506,214.06—

15

Other contingent funding obligations—

105,615,076.61

2,302,983,159.89

3,490,197,888.79

16

TOTAL CASH OUTFLOWS

35—

105,615,076.61——

447,174,698.00

390,884,796.00

250,674,083.00

193,641,115.00

As per 18 July 2022 DNB and Adyen agreed a new calculation method for the LCR ratio on the basis of the application of Article 26 LCR DA. Adyen reports its LCR on the basis of this revised calculation from July 2022 onwards. For more information see Liquidity andfunding section.

Adyen Transparency and Disclosure Report 2022

58

a

b

c

d

e

f

Total unweighted value (average)
Quarter ending on (DD Month YYY)

EU 1a

g

h

Total weighted value (average)

31-Dec-22

30-Sep-22

30-Jun-22

31-Mar-22

31-Dec-22

30-Sep-22

30-Jun-22

31-Mar-22

1,013,458,962.61

879,382,841.18

2,292,590,784.14

3,057,661,002.62

899,860,659.84

767,525,029.12

1,761,786,719.83

2,324,899,415.99

1,013,458,963.00

879,382,841.00

2,292,590,784.00

3,057,661,003.00

899,860,660.00

767,525,029.00

1,761,786,720.00

2,324,899,416.00

1,013,458,963.00

879,382,841.00

2,292,590,784.00

3,057,661,003.00

899,860,660.00

767,525,029.00

1,761,786,720.00

2,324,899,416.00

CASH - INFLOWS
17

Secured lending (e.g. reverse repos)

18

Inflows from fully performing exposures

19

Other cash inflows

EU-19a(Difference between total weighted inflows and total
weighted outflows arising from transactions in third
countries where there are transfer restrictions or which
are denominated in non-convertible currencies)

EU-19b(Excess inflows from a related specialised credit
institution)

20

TOTAL CASH INFLOWS

EU-20aFully exempt inflows

EU-20bInflows subject to 90% cap

EU-20cInflows subject to 75% cap

TOTAL ADJUSTED VALUE
EU-21

LIQUIDITY BUFFER

2,454,064,863.00

2,172,442,591.00

2,716,208,562.00

2,976,531,006.00

22

TOTAL NET CASH OUTFLOWS

111,793,674.50

97,721,199.00

62,668,520.75

48,410,278.75

23

LIQUIDITY COVERAGE RATIO

2,195 %

2,223 %

4,334 %

6,149 %

Adyen Transparency and Disclosure Report 2022

59

Annex EU LIQ2 – Net Stable Funding Ratio
Template EU LIQ2
Net Stable Funding Ratio
a

b

c

d

Unweighted value by residual maturity
No maturity< 6 months

6 months to < 1yr

≥ 1yr

e
Weighted value

Available stable funding (ASF) Items
1

Capital items and instruments

2,104,493,528

2,104,493,528

2

Own funds

2,104,493,528

2,104,493,528

3Other capital instruments

4

Retail deposits

5

Stable deposits

6

Less stable deposits

7

Wholesale funding:

1,071,890,499

535,945,249

8

Operational deposits

1,071,890,499

535,945,249

9

Other wholesale funding

10

Interdependent liabilities

11

Other liabilities:

12

NSFR derivative liabilities

13

All other liabilities and capital instruments not included in the above categories

14

Total available stable funding (ASF)

4,132,342,226

11,345,294

4,132,342,226

11,345,294

11,345,294

16,400,705
2,651,784,071

Required stable funding (RSF) Items
15

Total high-quality liquid assets (HQLA)

EU-15aAssets encumbered for a residual maturity of one year or more in a cover pool

16

Deposits held at other financial institutions for operational purposes

17

Performing loans and securities:

18

Performing securities financing transactions with financial customers collateralised by Level 1 HQLA subject to 0% haircut

19

Performing securities financing transactions with financial customer collateralised by other assets and loans and advances tofinancial institutions

1,574,404

2,518,761,473

2,376,499,476

12,263,502

321,044,449

237,649,948

Adyen Transparency and Disclosure Report 2022

60

a

b

c

d

Unweighted value by residual maturity
No maturity
20

Performing loans to non- financial corporate clients, loans to retail and small business customers, and loans to sovereigns, and PSEs, ofwhich:

21

With a risk weight of less than or equal to 35% under the Basel II Standardised Approach for credit risk

22

Performing residential mortgages, of which:

23

With a risk weight of less than or equal to 35% under the Basel II Standardised Approach for credit risk

24

Other loans and securities that are not in default and do not qualify as HQLA, including exchange-traded equities and trade finance onbalance sheet products

25Interdependent assets

26

Other assets:

27

Physical traded commodities

28

Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs

29

NSFR derivative assets

30

NSFR derivative liabilities before deduction of variation margin posted

31

All other assets not included in the above categories

32

Off-balance sheet items

33

Total Required Stable Funding (RSF)34

Net Stable Funding Ratio (%)< 6 months

6 months to < 1yr≥ 1yr

142,261,998eWeighted value
71,130,999

12,263,502

12,263,502

646,295,009

646,295,009

646,295,009

646,295,009

968,913,862
273.69 %Adyen Transparency and Disclosure Report 2022

61

Annex EU CR1 - Performing and non-performing exposures and related provisions
Template EU CR1
Performing and non performing exposures and related provisions
a

b

c

d

e

f

Of which stage 1

Non-performing exposures

Of whichstage 2

Of which stage 2005

Cash balances at
central banks andother demand
deposits

6,522,344,622

6,522,344,622

010

Loans and advances

435,447,864

435,447,864020

Central banks

030

General governments

040

Credit institutions

102,762,886

102,762,886

050

Other financial
corporations

190,420,002

190,420,002

13,592060

Non-financial
corporations

142,264,976

142,264,976

22,993,116070

Of which SMEs

080

Households

090

Debt securities

23,006,708

h

i

j

k

l

m

Accumulated impairment, accumulated negativechanges in fair value due to credit risk andprovisions

Gross carrying amount/nominal amountPerforming exposuresg

Of whichstage 3

Performing exposures –accumulated
impairment andprovisions

Non-performing
exposures –accumulated
impairment,
accumulated negativechanges in fair value
due to credit risk andprovisions

Of
which
stage
1

Of
which
stage
2

Of
which
stage
2

Of
which
stage
3

n

o

Collateral and financial
guarantees received
Accumulatedpartial writeoffOn
performing
exposures

On nonperforming
exposures

Adyen Transparency and Disclosure Report 2022

100

Central banks

110

General governments

120

Credit institutions

130

Other financial
corporations

140

Non-financial
corporations

150

Off-balance-sheet
exposures

160

Central banks

170

General governments

180

Credit institutions

190

Other financial
corporations

200

Non-financial
corporations

210

Households

220

Total

6,957,792,486

6,957,792,486

62-

23,006,708

-

-

-

-

-

-

-

-

-

-

-

Adyen Transparency and Disclosure Report 2022

63

Annex EU CR1A - Maturity of exposures
Template EU CR1-A
Maturity of exposures
a

b

c

d

e

f

Net exposure value
On demand
1

Loans and advances2

Debt securities

3

Total

No stated maturity

Total

102,762,886<= 1 year> 1 year <= 5 years> 5 years

332,684,978

435,447,864

102,762,886

332,684,978

435,447,864

Adyen Transparency and Disclosure Report 2022

64

Annex EU CR3 - CRM techniques overview: Disclosure of the use of credit risk mitigation techniques
Template EU CR3
CRM techniques overview: Disclosure of the use of credit risk mitigation techniques
Unsecured carrying amount

Secured carrying amount
Of which secured by collateral
Of which secured by financial guarantees
Of which secured by credit
derivatives

a

b

1

Loans and advances2

Debt securities

3

Total

4

Of which non-performing exposures

23,006,708

EU-5

Of which defaulted

23,006,708

c

d

e

6,980,799,194

—

—

—

—

6,980,799,194

—

—

—

—

Adyen Transparency and Disclosure Report 2022

65

Annex EU CR4 - Standardized Approach: Credit risk exposure and CRM effects
Template EU CR4Standardized approach - Credit risk exposure and CRM effects
Exposures before CCF and before CRM
Exposure classes

On-balance-sheet exposures Off-balance-sheet exposures On-balance-sheet exposuresa1

Central governments or central banks

2

Regional government or local authorities

3

Public sector entities

4

Multilateral development banks

5

International organisations

6

Exposures post CCF and post CRM

b

c

d

4,595,560,775

4,595,560,775

Institutions

2,173,215,410

7Corporates

8

Retail9

Secured by mortgages on immovable property

10 Exposures in default

RWAs and RWAs density

Off-balance-sheet
exposures—

RWAs

RWAs density
(%)

e

f

3,108,647

0.1 %2,173,215,410

429,144,025

19.7 %

427,526,320

427,526,320

309,487,286

72.4 %

23,006,708

23,006,708

34,510,062

150.0 %

12,263,502

12,263,502

12,263,502

100.0 %

11 Exposures associated with particularly high risk
12 Covered bonds
13 Institutions and corporates with a short-term credit assessment
14 Collective investment undertakings
15 Equity
16 Other items
17 Total

376,638,080

376,638,080

7,608,210,796

7,608,210,796—

364,134,371

96.7 %

1,152,647,893

15.2 %

Adyen Transparency and Disclosure Report 2022

66

Annex EU CR5 – Standardized approach: exposures by risk weight
Template EU CR5Standardized approach
Risk weight
Exposure classes

0%

2%

4%

10%

20%

35%

50%

70%

a

b

c

d

e

f

g

h

1

Central governments or central banks

4,595,560,775

2

Regional government or local authorities

3

Public sector entities

4

Multilateral development banks

5

International organisations

6

Institutions

2,170,821,285

2,394,1257

Corporates

147,548,792—

8Retail exposures

9

Exposures secured by mortgages on immovable property

10 Exposures in default
11 Exposures associated with particularly high risk
12 Covered bonds
13 Exposures to institutions and corporates with a short-term credit assessment
14 Units or shares in collective investment undertakings
15 Equity exposures
16 Other items
17 Total

4,595,560,775——— 2,318,370,077—

2,394,125—

Adyen Transparency and Disclosure Report 2022

67

Risk weight
75%

100%

150%

250%

370%

1250%

Others

i

j

k

l

m

n

o

Total

Of which unrated

p

q

1

Central governments or central banks

4,595,560,775

2

Regional government or local authorities—

3

Public sector entities—

4

Multilateral development banks—

5

International organisations

6

Institutions—

2,173,215,410

7Corporates

279,977,528

427,526,320

8

Retail exposures—

9

Exposures secured by mortgages on immovable property——

10 Exposures in default

23,006,708

23,006,708

11 Exposures associated with particularly high risk—

12 Covered bonds—

Exposures to institutions and corporates with a short-term credit
13
assessment—

14 Units or shares in collective investment undertakings

23,006,708—

15 Equity exposures

12,263,502

16 Other items
17 Total

371,766,170

12,263,502

376,638,080-

668,879,110

23,006,708

—

—

—

376,638,080

334,975,452— 7,608,210,796

729,748,330

Adyen Transparency and Disclosure Report 2022

68

Annex EU CQ3 - Credit quality of performing and non-performing exposures by past due days
Template EU CQ3
Credit quality of performing and non-performing exposures by past due days
a

b

c

d

e

f

g

h

i

j

k

l

Past due> 2 years ≤ 5
years

Past due> 5 years ≤ 7
years

Past due > 7
years

Of which
defaulted

Gross carrying amount/nominal amountPerforming exposures
Not past dueor past due ≤30 days005

Cash balances
at central
banks andother demand
deposits

010

Loans andadvances

020

Central banks

030

Generalgovernments

040

6,522,344,622

6,522,344,622

435,447,864

425,677,037

Creditinstitutions

102,762,886

102,762,886

050

Other financial
corporations

190,420,002

190,370,144060

Non-financial
corporations

142,264,976

132,544,007

070

Of which SMEs

080

Households

090

Debt securities

100

Central banks

110

Generalgovernments

120

Creditinstitutions

Non-performing exposures
Unlikely to
pay that are
not past dueor are pastdue ≤ 90 days

Past due > 30days ≤ 90
days

9,770,827

23,006,708—

Past due> 90 days≤ 180 days

Past due> 180 days
≤ 1 year

7,294,584

8,915,190

Past due> 1 year ≤ 2
years

5,104,898

1,692,035

23,006,708

13,5929,720,969

13,592—

10,6702,542

380

22,993,116

7,294,584

8,904,520

5,102,356

1,691,656

22,993,116

Adyen Transparency and Disclosure Report 2022

a

69

b

c

d

e

f

g

h

i

j

k

l

Past due> 2 years ≤ 5
years

Past due> 5 years ≤ 7
years

Past due > 7
years

Of which
defaulted

1,692,035——

Gross carrying amount/nominal amountPerforming exposures

130

Other financial
corporations

140

Non-financial
corporations

150

Off-balancesheet
exposures

160

Central banks

170

Generalgovernments

180

Creditinstitutions

190

Other financial
corporations

200

Non-financial
corporations

210

Households

220

Total

Non-performing exposures

Not past dueor past due ≤30 days

Past due > 30days ≤ 90
days

6,957,792,486 6,948,021,659

9,770,827

Unlikely to
pay that are
not past dueor are pastdue ≤ 90 days

23,006,708—

Past due> 90 days≤ 180 days

7,294,584

Past due> 180 days
≤ 1 year

8,915,190

Past due> 1 year ≤ 2
years

5,104,898

23,006,708

Adyen Transparency and Disclosure Report 2022

70

Annex EU CQ4 - Quality of non-performing exposures by geography
Template EU CQ4
Quality of non-performing exposures by geography
a

b

c

d

Gross carrying/nominal amount
Of which subject toimpairment

Of which non-performingeAccumulated
impairment

Of which defaulted

010

On-balance-sheet
exposures

458,454,572

23,006,708

23,006,708

458,454,572

020

BR

98,429,235

961,419

961,419

98,429,235

030

GB

80,190,849

2,511,802

2,511,802

80,190,849

040

US

113,329,794

9,121,268

9,121,268

113,329,794

070

Other countries

166,504,694

10,412,220

10,412,220

166,504,694080

Off-balance-sheet
exposures

-

-

090

GB

100

NL

110

US

120

Other countries

150

Total

458,454,572

23,006,708

fg

Provisions on offbalance-sheet
commitments andfinancial guarantees
given

Accumulated
negative changes infair value due tocredit risk on nonperforming
exposures-

23,006,708

458,454,572

-

-

-

Adyen Transparency and Disclosure Report 2022

71

Annex EU CQ5 - Credit quality of loans and advances to non-financial corporations by industry
Template EU CQ5
Credit quality of loans and advances to non-financial corporations by industry
a

b

c

d

e

f

Accumulated
impairment

Accumulated negativechanges in fair value
due to credit risk on
non-performing
exposures

Gross carrying amount
Of which loans andadvances subject toimpairment

Of which non-performing

Of which defaulted
010 Agriculture, forestry and fishing
020 Mining and quarrying
030 Manufacturing

77,65132,79132,791

77,651————

838,426

524,863

524,863

838,426040 Electricity, gas, steam and air conditioning supply

6,107

2,756

2,756

6,107

050 Water supply

69,16655,48955,48969,166060 Construction

24

—

—

24

070 Wholesale and retail trade

31,782,903

10,886,418

10,886,418

31,782,903

080 Transport and storage

14,220,056

2,995,724

2,995,724

14,220,056

090 Accommodation and food service activities

8,559,147

3,749,067

3,749,067

8,559,147

100 Information and communication

28,106,101

1,661,678

1,661,678

28,106,101

110 Financial and insurance activities

—

—

—

—

120 Real estate activities

—

—

—

—

130 Professional, scientific and technical activities

22,528

11,844

11,844

22,528140 Administrative and support service activities

14,464,957

557,701

557,701

14,464,957

150 Public administration and defense, compulsory social security

160,019

135,640

135,640

160,019160 Education

10,837

10,784

10,784

10,837170 Human health services and social work activities

59,64338,566

38,566

59,643

180 Arts, entertainment and recreation

962,019602,714602,714962,019

190 Other services

65,918,507

1,727,080

1,727,080

65,918,507

200 Total

165,258,092

22,993,116

22,993,116

165,258,092

Adyen Transparency and Disclosure Report 2022

72

Annex EU MR1 - Market risk under the standardized approach
Template EU MR1
Market risk under the standardized approacha
RWEAs
Outright products
1

Interest rate risk (general and specific)

2

Equity risk (general and specific)

3

Foreign exchange risk

4

Commodity risk

386,077,587

Options5

Simplified approach

6

Delta-plus approach

7

Scenario approach

8

Securitisation (specific risk)

9

Total

386,077,587

Adyen Transparency and Disclosure Report 2022

73

Annex EU IRRBB - Interest rate risks of non-trading book activities
Template EU IRRBBInterest rate risks of non-trading book activitiesaSupervisory shock scenariosbCurrent period
1

Parallel up

2

Parallel down

3

Steepener

4

Flattener

5

Short rates up

6

Short rates downcChanges of the economic value of equity
Last perioddChanges of the net interest income
Current period

Last period

67,446,867

567,378

134,893,734

1,134,757—(11,618,371)—(11,618,371)

Adyen Transparency and Disclosure Report 2022

74

Annex EU OR1 - Operational risk own funds requirements and risk-weighted exposure amounts
Template EU OR1
Operational risk own funds requirements and risk-weighted exposure amountsaBanking activities
Year-3
1

Banking activities subject to basic indicator approach (BIA)

2

Banking activities subject to standardised (TSA) / alternative standardised (ASA) approaches

3

Subject to TSA:

4

Subject to ASA:

5

Banking activities subject to advanced measurement approaches AMA

b

c

d

e

Last year

Own funds
requirements

Risk exposure amount

Relevant indicator

676,127,670

Year-2
989,768,262

1,347,525,762

150,671,085

1,883,388,559

Adyen Transparency and Disclosure Report 2022

75

Annex EU AE1 - Encumbered and unencumbered assets
Template EU AE1
Encumbered and unencumbered assets
Carrying amount of encumberedassetsFair value of encumbered assetsof whichnotionally eligible
EHQLA and
HQLA
010
010

Assets of the disclosing institution

030

Equity instruments

040

Debt securities050

of which: covered bonds

060

of which: securitisations

070

of which: issued by general governments080

of which: issued by financial corporations

090

of which: issued by non-financial corporations

120

Other assets

72,233,735

030

Carrying amount of unencumberedassetsFair value of unencumbered assetsof which EHQLA
and HQLA

of which EHQLA
and HQLA

of whichnotionally eligible
EHQLA and
HQLA
040

050

060
7,544,117,458

080
4,407,539,955

12,263,502

72,233,735

7,531,853,956

090

12,263,502

4,407,539,955

100

Adyen Transparency and Disclosure Report 2022

76

Annex EU AE2 - Collateral received and own debt securities issued
Template EU AE2
Collateral received and own debt securities issued
Fair value of encumbered collateral received or own debt
securities issued

Unencumbered
Fair value of collateral received or own debt
securities issued available for encumbranceof which notionally eligible
EHQLA and HQLA
010
130

Collateral received by the disclosing institution

140

Loans on demand

150

Equity instruments

160

Debt securities

170

of which: covered bonds

180of which: securitisations

190

of which: issued by general governments

200

of which: issued by financial corporations

210

of which: issued by non-financial corporations

220

Loans and advances other than loans on demand

230

Other collateral received

240

Own debt securities issued other than own covered bonds or securitisations

241

Own covered bonds and securitisations issued and not yet pledged

250

Total collateral received and own debt securities issued

030

72,233,735

of which EHQLA and HQLA
040

060

Adyen Transparency and Disclosure Report 2022

77

Annex EU AE3 - Sources of encumbrance
Template EU AE3
Sources of encumbrance

010

Carrying amount of selected financial liabilities

Matching liabilities, contingent liabilities or securities lent

Assets, collateral received and own
debt securities issued other than covered bonds andsecuritisations encumbered

010

030
72,233,735

72,233,735

Adyen Transparency and Disclosure Report 2022

78

Annex EU REM1 - Remuneration awarded for the financial year
Template EU REM1
Remuneration awarded for the financial year
a

b

c

d

MB Supervisory function

MB Management function

Other senior management

Other identified staff

1

Number of identified staff

5

6

3

18

2

Total fixed remuneration

386,000

4,029,010

2,049,388

7,022,464

3

Of which: cash-based

386,000

3,590,010

1,372,556

5,887,163

4(Not applicable in the EU)

439,000

676,832

1,135,301

EU-4a5

Fixed remuneration

Of which: shares or equivalent ownership interests
Of which: share-linked instruments or equivalent non-cash instruments

EU-5x

Of which: other instruments

6(Not applicable in the EU)

7

Of which: other forms

8(Not applicable in the EU)

9

Number of identified staff

10

Total variable remuneration

2,903,921

11

Of which: cash-based

2,344,517

12

Of which: deferred

EU-13aOf which: shares or equivalent ownership interests

EU-14aEU-13b

Variable
remuneration

223,761

Of which: deferred
Of which: share-linked instruments or equivalent non-cash instruments

559,403

EU-14bOf which: deferred

223,761

EU-14xOf which: other instruments

EU-14yOf which: deferred

15

Of which: other forms

16

Of which: deferred

17

Total remuneration (2 + 10)

386,000

4,029,010

2,049,388

9,926,385

Adyen Transparency and Disclosure Report 2022

79

Annex EU REM4 - Remuneration of 1 million EUR or more per year
Template EU REM4
Remuneration of EUR 1 million or more per yearaEUR
1

1 000 000 to below 1 500 000

21 500 000 to below 2 000 000

32 000 000 to below 2 500 000

42 500 000 to below 3 000 000

53 000 000 to below 3 500 000

63 500 000 to below 4 000 000

74 000 000 to below 4 500 000

84 500 000 to below 5 000 000

95 000 000 to below 6 000 000

10 6 000 000 to below 7 000 000
11 7 000 000 to below 8 000 000

Identified staff that are high earners as set out in Article 450(i) CRR
7

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Annex EU REM5 - Information on remuneration of identified staff
Template EU REM5
Information on remuneration of staff whose professional activities have a material impact on institution's risk profile (identified staff)
a

b

c

d

e

Management body remuneration
MB
Supervisory
function1

Total number of identified staff

2

Of which: members of the MB

3

Of which: other senior management

4

Of which: other identified staff

5

Total remuneration of identified staff

6

Of which: variable remuneration

7

Of which: fixed remuneration

MB Management
function

f

g

h

i

j

Corporatefunctions

Independentinternal control
functions

All other

Total

Business areas
Investmentbanking

Total MB

Retail banking

Assetmanagement

32
5

6

11

386,000

4,029,010

4,415,010

8

3

10

1,812,346

920,864

9,242,563
2,903,921

386,000

4,029,010

4,415,010

1,812,346

920,864

6,338,642

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Annex ESG 1: Transition risks from counterparty exposure
a

b

c

d

e

1

Exposures towards sectors that highly contribute to39
climate change*

Of which
exposures
Of whichtowards
environmentally Of which stage 2
companies
sustainable
exposures
excluded from(CCM):EU Paris-aligned
38
Benchmarks

2

A - Agriculture, forestry and fishing3

B - Mining and quarrying

4

B.05 - Mining of coal and lignite

5

B.06 - Extraction of crude petroleum and natural gas

6

B.07 - Mining of metal ores

7

B.08 - Other mining and quarrying

8

B.09 - Mining support service activities

9

C - Manufacturing

10

C.10 - Manufacture of food products

11

C.11 - Manufacture of beverages

12

C.12 - Manufacture of tobacco products

13

C.13 - Manufacture of textiles

14

C.14 - Manufacture of wearing apparel15

C.15 - Manufacture of leather and related products

16

C.16 - Manufacture of wood and of products of wood andcork, except furniture; manufacture of articles of straw andplaiting materials

36

55,475,829

6,107

69,166

g

h

l

m

n

o

p

Accumulated
37
impairment

36

Gross carrying amount (in Thousand EUR)
Sector/sub- sector

f

—

Of
Of
which
which
nonStage
perfo
2
rming
expos
expos
ures
ures

Of which nonperforming
exposures

18,214,317

—

—

—

<= 5 years

55,475,829

5 - 10 10 - 20 > 20
years years years

—

—

—

Averageweighted
maturity

60,536

The gross carrying amount, as defined in Part 1 of Annex V to Commission Implementing Regulation (EU) 2021/4514, of those exposures towards non- financial corporates, including loans and advances, debt securities and equity instruments, classified in the accounting
portfolios in the banking book according to that Regulation, excluding financial assets held for trading or held for sale assets.
37
Accumulated negative changes in fair value due to credit risk and provisions.
38
In accordance with points (d) to (g) of Article 12.1 and in accordance with Article 12.2 of Climate Benchmark Standards Regulation
39
In accordance with the Commission delegated regulation EU) 2020/1818 supplementing regulation (EU) 2016/1011 as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks -Climate Benchmark Standards Regulation Recital 6: Sectors listed in Sections A to H and Section L of Annex I to Regulation (EC) No 1893/2006

Adyen Transparency and Disclosure Report 2022

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a

b

c

d

e

f

Of which
exposures
Of whichtowards
environmentally Of which stage 2
companies
sustainable
exposures
excluded from(CCM):EU Paris-aligned
Benchmarks

17

C.17 - Manufacture of pulp, paper and paperboard

18

C.18 - Printing and service activities related to printing

19

C.19 - Manufacture of coke oven products

20

C.20 - Production of chemicals

21

C.21 - Manufacture of pharmaceutical preparations

22

C.22 - Manufacture of rubber products

23

C.23 - Manufacture of other non-metallic mineral products

24

C.24 - Manufacture of basic metals

25

C.25 - Manufacture of fabricated metal products, except
machinery and equipment

26

C.26 - Manufacture of computer, electronic and opticalproducts

27

C.27 - Manufacture of electrical equipment

28

C.28 - Manufacture of machinery and equipment n.e.c.

29

C.29 - Manufacture of motor vehicles, trailers and semitrailers

30

C.30 - Manufacture of other transport equipment

31

C.31 - Manufacture of furniture32

C.32 - Other manufacturing33

C.33 - Repair and installation of machinery and equipment

34

D - Electricity, gas, steam and air conditioning supply

35

D35.1 - Electric power generation, transmission anddistribution

838,426

6,107

6,107

h

l

m

n

o

p

Accumulated
impairment

Gross carrying amount
Sector/sub- sectorg

Of which nonperforming
exposures

Of
Of
which
which
nonStage
perfo
2
rming
expos
expos
ures
ures

<= 5 years

5 - 10 10 - 20 > 20
years years years

Averageweighted
maturity

524,863

838,426

829

2,756

6,107

392

Adyen Transparency and Disclosure Report 2022

83

a

b

c

d

e

f

36

D35.11 - Production of electricity

37

D35.2 - Manufacture of gas; distribution of gaseous
fuels through mains

38

D35.3 - Steam and air conditioning supply

39

E - Water supply; sewerage, waste management
and remediation activities

Of which
exposures
Of whichtowards
environmentally Of which stage 2
companies
sustainable
exposures
excluded from(CCM):EU Paris-aligned
Benchmarks

40

F - Construction

41

F.41 - Construction of buildings

42

F.42 - Civil engineering

43

F.43 - Specialised construction activities

44

G - Wholesale and retail trade; repair of motor
vehicles and motorcycles

45

H - Transportation and storage46

H.49 - Land transport and transport via pipelines

47

H.50 - Water transport48

H.51 - Air transport49

H.52 - Warehousing and support activities fortransportation50

H.53 - Postal and courier activities

51

I - Accommodation and food service activities

52

L - Real estate activities

53

Exposures towards sectors other than those thathighly contribute to climate change*

54

K - Financial and insurance activities

69,166

h

l

m

n

o

p

Accumulated
impairment

Gross carrying amount
Sector/sub- sectorg69,166

Of
Of
which
which
nonStage
perfo
2
rming
expos
expos
ures
ures

Of which nonperforming
exposures

55,48924<= 5 years

5 - 10 10 - 20 > 20
years years years

Averageweighted
maturity

69,166573

24

631,782,903

10,886,418

31,782,903

2,167

14,199,914

2,995,724

14,199,914

6,019

20,14250,3558,559,147

195

20,1428,559,147

109,782,262

3,749,067———

4,795,863———

109,782,262

—

—

—

3,776

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a

b

c

d

e

Of which
exposures
Of whichtowards
environmentally Of which stage 2
companies
sustainable
exposures
excluded from(CCM):EU Paris-aligned
Benchmarks

55

Exposures to other sectors (NACE codes J, M - U)

109,782,262

56

TOTAL

165,258,091

g

h

l

Of
whic
Of
h
which nonStage perf
2
ormi
expos ng
ures expo
sures

Of which nonperforming
exposures

4,795,863
6,107

69,166mnopAccumulated
impairment

Gross carrying amount (in Thousand EUR)

Sector/sub- sectorf—

23,010,180<= 5 years

5 - 10 10 - 20 > 20
years years years

109,782,262———

165,258,091

Averageweighted
maturity

3,776
—

—

—

64,312