Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q2 2023 Earnings Presentation
29 slides from Allegro.eu's earnings presentation, Sep 28, 2023
Slide 1: Allegro.eu Q2 2023 Results presentation
Allegro.eu Q2 2023 Results presentation 28 September 2023 |1
Slide 2: Disclaimer
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 Duchy
Slide 3: Agenda
Agenda // Highlights Financial results: Polish Operations International Operations Group Management outlook Q&A |3
Slide 4: Highlights
Highlights |4
Slide 5: Allegro delivering across all revenue drivers despite macro environment
Allegro delivering across all revenue drivers despite macro environment Q2 2023 Top Line Highlights1 ● GMV in Poland significantly outpaced total retail sales Active Buyers GMV per Active Buyer market (YoY: -7.3% YoY in real terms; +2.4% nominal2) Group 18.5m Group PLN 3.0k through growth in Active
Slide 6: Excellent progress on margins and cash generation bringing leverage down quickly
Excellent progress on margins and cash generation bringing leverage down quickly Q2 2023 Profitability, Cash-flow and Leverage Highlights1 ● Adjusted EBITDA driven predominantly by revenue Adjusted EBITDA growth and continued focus on cost control Group +19.9% and efficiency Poland +22.1% ● Capex ma
Slide 7: Management continues to work on the Seven Priorities
Management continues to work on the Seven Priorities Poland CE-51 Framework to report progress Win in Czechia / Slovakia 1 Strong in Poland 2 with our marketplace model across the Growth organization 3 Scale up Allegro Pay Improve Smart! and delivery 4 economics 5 Mall 1P business turnaround Costs 6
Slide 8: Strong in Poland: Resilient demand for Allegro's wide selection at attractive prices
Strong in Poland: Resilient demand for Allegro's wide selection at attractive prices Retail basics PRIORITY 1 Grow selection Focus on pricing Improve convenience ● Selection passed 320m offers in Q2 with ● Launched Best Price Guarantee in April to ● Customer Service further deployed new Supermarket
Slide 9: Robust growth in Advertising revenue ahead of GMV; Allegro Pay scale up
Robust growth in Advertising revenue ahead of GMV. Continued scale up and gradual shift towards monetisation of Allegro Pay Strong in Poland: Advertising PRIORITY 1 Allegro Pay PRIORITY 3 Advertising revenue grew by 34% YoY, 3x faster than GMV, up to 1.42% ● +54% YoY growth in originated loans to PL
Slide 10: Key international expansion milestone reached with launch of allegro.cz
Key international expansion milestone reached with launch of allegro.cz 3P marketplace launch in Czechia PRIORITY 2 allegro.cz hard launched on 31st July extends 3P marketplace TAM to nearly 50m people, with very promising early results2 ~55% of users registered >20k shops to Allegro account on the
Slide 11: Continued focus on costs: efficiency across Smart! and Delivery
Continued focus on costs: efficiency across Smart! and Delivery Smart! PRIORITY 4 Delivery experience PRIORITY 4 ● Annual subscriptions growing with rationalisation of free offerings: ● 3k APMs2 installed, with One Box marketing campaign rolled out in selected ○ Smart! for Start expiring with many c
Slide 12: Continued focus on costs: Mall 1P turnaround and Fit to Grow
Continued focus on costs: Mall 1P turnaround and Fit to Grow Mall 1P turnaround PRIORITY 5 Fit to Grow PRIORITY 6 ● Challenging macro conditions driving sales declines in the largest, ● “Fit to Grow” ahead of objectives in Q2 with regards to the savings discretionary categories delivered, as compare
Slide 13: Financial results
Financial results | 13
Slide 14: Q2 2023 key results: Polish Operations
Polish Operations Q2 2023 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q2 PLN 13,484m +11.3% YoY 14.3m +5.1% YoY PLN 3,664 +9.4% YoY 11.23% +0.42pp YoY H1 PLN 25,824m +12.6% YoY 11.13% +0.49pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV margin Cash Conversi
Slide 15: Allegro average spend accelerates in Q2 due to rising buyer engagement
Polish Operations Allegro average spend accelerates in Q2 due to rising buyer engagement Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 5.1% 9.4% 1.7% 1.8% 1.1% 0.4% 1.9% 2.3% 2.9% 1.9% 13.6 13.8 14.1 14.2 14.3 3 515 3 582 3 664 3 350 3 449 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022
Slide 16: GMV in Poland up by 11.3% as transaction growth accelerates
Polish Operations GMV in Poland up by 11.3% as transaction growth accelerates GMV1 PLN bn ● LTM2 GMV of PLN 52.3bn, up by 14.9% YoY and advancing by nearly PLN 1.4bn QoQ 16.0% 21.4% 14.0% 14.0% 11.3% ● Transaction YoY growth accelerates sequentially to low teens, lifting spend, while trading down co
Slide 17: Revenue growth driven by marketplace and advertising
Polish Operations Revenue growth driven by marketplace and advertising Revenue Bridge Take Rate2 PLN m % 15.7% 33.9% 8.8% 8.7% 209.1% 18.4% Q2’23 Take Rate up by 0.42pp YoY, resulting mainly from monetization 48.6 3.8 9.0 29.1 1 894.0 initiatives introduced in Q3’22 203.4 1 600.1 10.81 11.05 10.91 1
Slide 18: Adjusted EBITDA up by PLN 122m driven by GMV and take rate growth
Polish Operations Adjusted EBITDA up by PLN 122m driven by GMV and take rate growth, rising advertising contribution and continuous focus on SG&A efficiency ● Marketplace revenue increase on the back of GMV growth Adjusted EBITDA bridge in Q2 20231 at higher YoY take rates PLN m ● Further growth in
Slide 19: Capex spend down over 50% YoY with focus on ROI metric
Polish Operations Capex spend down over 50% YoY with focus on ROI metric Capital expenditures1 by type -51.3% ● Delivery Experience projects focused on improving economics by PLN m 208.8 increasing the APMs utilisation, with only selective additions to the network requiring capex 127.4 101.7 ● Conti
Slide 20: Q2 2023 key results: International Operations
International Operations Q2 2023 key results: International Operations1 (Mall Segment and Allegro International Segment) GMV Active Buyers3 LTM GMV / Active Buyer5 Take Rate6 Q2 PLN 743m -5.7% YoY 4.3m +1.1% YoY2 PLN 902.8 -3.1% YoY2 11.32% -0.26pp YoY H1 PLN 1,543 -3.1% YoY2 11.97% N/A8 Revenue Adj
Slide 21: Allegro.cz begins to mitigate legacy Mall segment GMV declines
International Operations Allegro.cz begins to mitigate legacy Mall segment GMV declines in continuing tough macro conditions GMV bridge in Q2 2023 PLN m ● Five consecutive quarters of real declines -16.7% +12.5% -12.1% -5.7% in Czech retail sales, with 5.3% YoY real decrease in Q2’231 787.9 56.7 743
Slide 22: Mall loss reduced despite falling sales while Allegro invests in the marketplace
International Operations Mall loss reduced despite falling sales while Allegro invests in the marketplace to start the flywheel Adjusted EBITDA bridge in Q2 20231 PLN m ● Mall Segment marginally reduced its YoY Adjusted EBITDA loss due to progress on marketing efficiency, logistics and SG&A ● allegr
Slide 23: Q2 2023 key results: Consolidated Group
Group Consolidated Q2 2023 key results: Consolidated Group1 GMV Adjusted EBITDA Take rate Q2 PLN 14,227m +10.3% YoY PLN 580.4m +19.9% YoY 11.23% +0.41pp YoY H1 PLN 27,366m +15.4% YoY PLN 1,111.3m +17.3% YoY 11.14% +0.49pp YoY Revenue Adj. EBITDA / GMV margin Cash Conversion2 Q2 PLN 2,398m +8.5% YoY
Slide 24: Leverage stepped down in Q2 to 2.56x
Group Consolidated Leverage stepped down in Q2 to 2.56x thanks to rising LTM EBITDA, lower NWC1 and reduced capex PLN m (unaudited) 30.06.2022 31.12.2022 31.03.2023 30.06.2023 ● Seasonal fall in NWC incl. consumer loan sales LTM2 Adjusted EBITDA Polish 1,987.1 2,309.4 2,447.2 2,569.1 delivered PLN 1
Slide 25: Management outlook
Management outlook | 25
Slide 26: Q3 Polish Adjusted EBITDA expected at 30-32% YoY, while Allegro.cz GMV accelerates
Q3 Polish Adjusted EBITDA expected at 30-32% YOY, while Allegro.cz GMV accelerates more than 3x QoQ Polish Operations International Operations3 Group consolidated Q2’23 Q2’23 Q2’23 Q2’23E Actual Q3’23E Q2’23E Actual Q3’23E Q2’23E Actual Q3’23E GMV 11-12% 11.3% 10-11% 3-6% 5.7% 10-12% 10-11% 10.3% 8-
Slide 27: Q&A
Q&A | 27
Slide 28: Thank you.
alleoro Thank you.
Slide 29: Appendix: Expanded group structure explained
Appendix: Expanded group structure explained Consolidated Group: ALLEGRO.EU Polish Operations International Operations Reportable Allegro segment Allegro Ceneo Other Mall International Legal Allegro sp. z o.o. Ceneo.pl sp. z o.o. Allegro Treasury S.à r.l. Mall Group a.s. allegro.cz operations (run (