Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q2 2021 Earnings Presentation
27 slides from Allegro.eu's earnings presentation, Aug 5, 2021
Slide 1: Allegro.eu Q2 2021 Results presentation
| 1 Allegro.eu Q2 2021 Results presentation 5 August 2021
Slide 2: Disclaimer
| 2 Disclaimer This presentation (“Presentation”) has been prepared by Allegro.eu, a public limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 1, rue Hildegard von Bingen, L – 1282 Luxembourg, Grand D
Slide 3: Agenda
| 3 1 2 Highlights Financial results Agenda 3 4 Summary Q&A
Slide 4: Allegro grows GMV by 10.6% YoY in Q2 versus the toughest comparative quarter
| 4 1 Allegro grows GMV by 10.6% YoY in Q2 versus the toughest comparative quarter in 2020; with 2019-21 GMV CAGR at 38% Continuous progress on business inputs and development roadmap drove YoY growth, with revenue advancing 28% and Adjusted EBITDA up by 24% for Q2 • GMV growing to PLN 10,440m, +10.
Slide 5: Q2 2021 key results
| 5 1 Q2 2021 key results GMV Active Buyers GMV per Active Buyer1 Take Rate2 PLN 10,440m Q2’21 13.2m Q2’21 PLN 2,969 Q2’21 10.46% Q2’21 +10.6% YoY +7.2% YoY +29.4% YoY +1.53pp YoY PLN 20,036m H1’21 10.45% H1’21 +25.2% YoY +1.36pp YoY Revenue Adjusted EBITDA Adjusted EBITDA / GMV Cash Conversion3 mar
Slide 6: Key business developments for Q2 2021
| 6 1 Key business developments for Q2 2021 Adjacent International Consumer B2B expansion International verticals Smart! Advertising FinTech Delivery sellers Retail inbound Benefit from experience Basics underlying market growth “Accelerate “Incubate and maximise the flywheel” future levers” While c
Slide 7: Retail Basics: growing selection, keeping low prices, and constantly improving convenience
| 7 1 Retail Basics: growing selection, keeping low prices, and constantly improving convenience Continued selection growth Price leadership Improving convenience • Rapidly improving selection with YoY offers • Progressing on price leadership versus • Growing app penetration with ca. 50% LTM growth
Slide 8: Delivery experience: ongoing improvement in delivery speed; Allegro Fulfillment and Last Mile projects progressing
| 8 1 Delivery experience: ongoing improvement in delivery speed; Allegro Fulfillment and Last Mile projects progressing through the test stage Improving delivery speed Allegro Fulfillment Last Mile +14pp % of parcels delivered in 1-2 days Q2 Q2 2020 2021 • Very strong improvement in 1-2 day • Fit-o
Slide 9: Gaining Smart! customers and strengthening value proposition
| 9 1 Gaining Smart! customers and strengthening value proposition Growing the user base Improving Smart! for customers • Continuing growth in Smart! user base and • Extended availability of free to-door courier GMV penetration deliveries to >99% of Smart! offers • Prolonged Smart! for Start campaig
Slide 10: Monetization: Take Rate stable QoQ at 10.46%; advertising share of GMV >1%
| 10 1 Monetization: Take Rate stable QoQ at 10.46%; advertising share of GMV >1% with 39.5% YoY revenue growth Marketplace Advertising • Similar to Q1, co-financing and delivery • Strong Sponsored Offers performance monetization remained strong drivers of YoY despite slower traffic growth, fueled b
Slide 11: Advancing future growth levers: Allegro Pay, B2B and International
| 11 1 Advancing future growth levers: Allegro Pay, B2B and International Allegro Pay B2B International • Solid progress towards 2021 targets: • B2B GMV growth solidly outperforming total • Since 8 June merchants can ship to all EU marketplace growth since launch countries2 through an integrated log
Slide 12: Active Buyers grew by 7.2% YoY with solid retention of new buyers
| 12 2 Active Buyers grew by 7.2% YoY with solid retention of new buyers from the Q2 2020 lockdown Active Buyers (period end)1 m • Active Buyers is an LTM measure 7.2% • Q2 2020 new buyers cohort acquired at the onset 3.3% 2.0% -0.5% 2.3% of COVID-19 was up 50% YoY vs Q2 2019 cohort 13,0 13,2 13,2 1
Slide 13: LTM GMV per Active Buyer grew by 29.4% YoY and 3.1% QoQ
| 13 2 LTM GMV per Active Buyer grew by 29.4% YoY and 3.1% QoQ LTM GMV / Active Buyer (period end) PLN 29.4% 3.1% 6.7% 9.6% 2 880 2 969 7.3% 2 699 2 463 2 295 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2021 2021 QoQ YoY Source: Company information
Slide 14: COVID-19 update: offline retail in Poland reopened in May
| 14 2 COVID-19 update: offline retail in Poland reopened in May Daily new confirmed COVID-19 cases per 1m people • Q1/Q2 2020 lockdown closed all non-essential Shown is the rolling 7-day average offline retail and Smart! subscriptions were offered for free from mid-March to mid-June, 900 creating t
Slide 15: GMV grew by 10.6% YoY in Q2 with FY19-21 CAGR at 38%
| 15 2 GMV grew by 10.6% YoY in Q2 with FY19-21 CAGR at 38% GMV1 PLN bn 71.5% 48.7% 57.5% 46.1% 10.6% • LTM GMV reached PLN 39.1bn up by 37.6% YoY • Rising Smart! penetration and retail basics execution 10,9 keeps improving the Smart! GMV share and buyer 10,4 9,6 engagement 9,4 8,3 • Progressively s
Slide 16: Revenue continued to grow ahead of GMV in Q2 2021, up by 28.4% YoY
| 16 2 Revenue continued to grow ahead of GMV in Q2 2021, up by 28.4% YoY Revenue Quarterly revenue structure PLN m PLN m 42.3% 65.3% 49.7% 61.2% 61.1% 28.4% 2 518,3 1,299.0 1,308.1 0.5% 1,210.2 0.4% 0.4% 9.1% 4.9% 8.7% 3.1% 4.1% 1 770,1 1,019.0 0.5% 8.4% 28.4% 928.7 0.6% 4.4% 8.0% 8.4% 4.0% 1 308,1
Slide 17: Co-financing and delivery monetization drive rise in Take Rate
| 17 2 Co-financing and delivery monetization drive 153 bps YoY rise in Take Rate. Advertising revenue growing 39.5% YoY Revenue Bridge Take Rate1 PLN m % 29.4% 39.5% -10.9% 29.3% 23.6% 28.4% • Strong demand for offer promotion offsetting higher investment QoQ in pricing support 1.1 • Seasonality, p
Slide 18: Pro forma cost of sales steady as % of revenue despite growth in Smart!
| 18 2 Pro forma cost of sales steady as % of revenue despite growth in Smart! penetration Cost of sales as % revenue 32% 30% 29% • Net costs of delivery in Q2 2020 exclude PLN 71.7m 29% 5% 27% 8% 5% costs of free Smart!1 booked in marketing expenses 5% 23% 4% • Including these marketing costs in th
Slide 19: YoY cost to revenue decline driven largely by free Smart! costs in the base period
| 19 2 YoY cost to revenue decline driven largely by free Smart! costs in the base period and operating leverage. Continuing underlying strong investment in future growth SG&A as % revenue1 33% 3% 29% • 5.0pp YoY decline in SG&A costs as % of revenue 1% 28% 1% 3% 27% 27% driven largely by PLN 71.7m
Slide 20: Adjusted EBITDA at PLN 559.9m in Q2 2021, up by 23.8% YoY
| 20 2 Adjusted EBITDA at PLN 559.9m in Q2 2021, up by 23.8% YoY 36.6% 26.7% 38.8% 50.6% 23.8% 35.6% 1 095,6 Adjusted EBITDA1 808,0 PLN m 533,5 535,6 559,9 452,4 408,5 Q2 Q3 Q4 Q1 Q2 H1 H1 2020 2020 2020 2021 2021 2020 2021 % Margin 44.4% 44.0% 41.1% 44.3% 42.8% 45.6% 43.5% % GMV2 4.79% 4.95% 4.92%
Slide 21: Net profit nearly doubling YoY in H1 2021
| 21 2 Net profit nearly doubling YoY in H1 2021 Reconciliation of Adjusted EBITDA [PLN m] H1 2020 H1 2021 % Q2 2020 Q2 2021 % 1 Share based compensation costs accrued in Q2 2021 in Adjusted EBITDA 808.0 1,095.6 35.6% 452.4 559.9 23.8% relation to April AIP1 grant Monitoring costs (1.7) – -100.0% (1
Slide 22: Capex grew by 24.0% YoY reaching 7.1% of Q2 revenue
| 22 2 Capex grew by 24.0% YoY reaching 7.1% of Q2 revenue Capital expenditures1 • Capitalized development costs from by type platform improvements still the main 29.0% PLN m capex driver in Q2 153.5 • Fulfillment center full-scale fit-out lagged 119.0 49,5 into Q3 as WMS3 development is on the 24.0
Slide 23: Further organic deleveraging to below 2x
| 23 2 Further organic deleveraging to below 2x [PLN m] Jun-20 Dec-20 Jun-21 • H2 interest rate set to fall by 50bps translating to PLN 11m lower interest Adjusted EBITDA LTM 1,515 1,750 2,038 payments in H2 as a result of bringing Borrowings at amortized cost 6,170 5,438 5,446 leverage down below 2
Slide 24: Maintaining raised 2021 expectations from the Q1 update with marginally lower capex
| 24 2 Maintaining raised 2021 expectations from the Q1 update with marginally lower capex 2020 FY 2021 FY 2021 Actual Q1 2021 report Update Comments GMV 54% High teens-Low Unchanged • Growth accelerating from Q2 low point YoY growth 20s% YoY growth in H2 Revenue 54% Low 30s% Unchanged • Take Rate s
Slide 25: Summary
| 25 3 Summary Improvement across the consumer facing inputs drives 10.6% GMV growth vs toughest comparative quarter Higher Take Rate and growing advertising drive revenue up 28% YoY with Adjusted EBITDA rising 24% Allegro Pay scale-up on track Progressing on the delivery experience projects to driv
Slide 26: Questions & Answers
| 26 4 Questions & Answers
Slide 27: Thank you
| 27 Thank you