Slide 1: Allegro.eu Q2 2024 results presentation
Allegro.eu Q2 2024 results presentation 19 September 2024 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 o
Slide 3: Agenda
Agenda Highlights Financial results: Polish Operations International Operations Group Management outlook Q&A | 33
Slide 4: Highlights
Highlights 4
Slide 5: Group GMV growth accelerates 2.2pp QoQ to 11.1% for Q2
Group GMV growth accelerates 2.2pp QoQ to 11.1% for Q2 Group Active Buyers cross 20 million Q2 2024 Top Line Highlights1 ● International contributing positively to QoQ GMV growth Active Buyers GMV per Active Buyer Group 20.3m, +9.3% Group PLN 3.0k -0.4% ● Polish GMV growth accelerating 1.6pp to 11.6
Slide 6: Topline acceleration and targeted investments result in 35% growth of Polish Adjusted EBITDA
Topline acceleration combined with targeted investments result in 35% growth of Polish Adjusted EBITDA in Q2 Q2 2024 Profitability, Cash-flow and Leverage Highlights1 ● Polish Adj. EBITDA / GMV margin above the mid-term target at Adjusted EBITDA 6.03% for Q2, reflecting: Group +31.5% ○ Cumulated impact
Slide 7: Progress update on the multi-year priority framework
Progress update on the multi-year priority framework Medium-term business objectives Grow Core Build New Expand Ensure Solid Marketplace Engines Internationally Fundamentals 1. Easy and safe to shop, 3. Strong advertising 6. Systematic 8. Groupwide system simple to sell introduction of our architect
Slide 8: Strengthening the core marketplace proposition for buyers and merchants
Grow Core Strengthening the core marketplace proposition Marketplace for buyers and merchants… 1. Easy and safe to shop, simple to sell 2. Increasingly loyal customers ● High-frequency categories, Supermarket and ● Added over 100k Active Buyers in Poland in Q2, Health & Beauty growing ~1.5x ahead of
Slide 9: Investing in new engines to further support business performance
Build New … while investing in new engines to further support Engines business performance 3. Advertising powering ahead 4. Seamless fintech solutions 5. Low cost and reliable delivery ● Advertising growth continues ahead of GMV at ● Crossed two million Allegro Pay users milestone ● Launched 'Allegro
Slide 10: Total international operations GMV up 3.2% YoY
International Operations Expand Total international operations GMV up 3.2% YoY Internationally Current focus on Mall rightsizing 6. Systematic introduction of our asset-light marketplace 7. Complete Mall Segment turnaround Solid progress in Czechia with first full quarter Pivoting to lean and margin
Slide 11: We continue to work on operational excellence
Group Ensure Solid We continue to work on operational excellence Fundamentals 8. Groupwide system architecture & software development processes 9. People & Culture, ESG 3.5k machines installed ● Completed unification of group wide IT support system ● Allegro Economic Impact Report released: Poland’s
Slide 12: Financial results
Financial results 12
Slide 13: Q2 2024 key results: Polish Operations
Polish Operations Q2 2024 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q2 2024 PLN 15,054m +11.6% YoY 14.9m +4.3% YoY PLN 3,870 +5.6% YoY 12.53% +1.30pp YoY H1 2024 PLN 28,624m +10.8% YoY 12.36% +1.23pp YoY Revenue5 Adjusted EBITDA Adj. EBITDA / GMV Margin Ca
Slide 14: Added over 600k Active Buyers YoY, with acceleration in average annual spend
Polish Operations Added over 600k Active Buyers YoY, with further QoQ acceleration in average annual spend per buyer Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 4.3% 5.6% 1.4% 1.2% 0.9% 0.7% 1.0% 1.1% 1.4% 2.1% QoQ YoY QoQ YoY 14
Slide 15: GMV in Poland up 11.6% YoY in Q2
Polish Operations GMV in Poland up 11.6% YOY in Q2 (+1.6pp QoQ) supported by strong performance in prioritised, high-frequency categories GMV1 PLN bn 11.3% 10.5% 8.5% 10.0% 11.6% ● LTM2 GMV of PLN 57.6bn, up by 10.1% YoY and advancing by PLN 1.6bn QoQ 11.5% 12.5% 13.9% 11.6% 12.5% ● Supermarket and
Slide 16: Revenue up by 24%, supported by take rate, advertising, logistics and loans
Polish Operations Revenue1 up by 24%, supported by take rate, advertising, logistics services2 and sales of consumer loans Revenue bridge Take Rate5 PLN m % 24.8% 29.9% 5.4% -10.5% 70.2% 23.8% ● Q2’24 Take Rate up by 1.30pp YoY, with rate card and co-financing changes for 2024 brought forward to late
Slide 17: Continued excellent growth in Adjusted EBITDA, up by 35% YoY
Polish Operations Continued excellent growth in Adjusted EBITDA, up by 35% YoY, supported by rising GMV and Take Rate, high-margin advertising and contribution from Allegro Pay ● Marketplace revenue reflecting accelerating GMV Adjusted EBITDA bridge in Q2 20241 growth at increased YoY Take Rate PLN m
Slide 18: Capex spend up by 10% YoY with continued focus on ROI
Polish Operations Capex spend up by 10% YoY with continued focus on ROI metric and asset utilization Capital expenditures1 by type PLN m 10.3% 112.1 101.7 ● Capital expenditures up by 10% vs last year’s lows ● Capitalized development costs up by 14% YoY, driven by increasing tech cost base ● Other c
Slide 19: Q2 2024 key results: Mall Segment
International Operations: Mall Segment Q2 2024 key results: Mall Segment GMV Active Buyers1 LTM GMV / Active Buyer Take Rate Q2 2024 PLN 444m -35.9% YoY 3.7m -11.8% YoY PLN 672 -26.4% YoY 7.75%2 -5.68pp YoY H1 2024 PLN 937m -37.2% YoY 11.27% -1.89pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Marg
Slide 20: Mall Segment losses reduced as it pivots to profitable selection
International Operations: Mall Segment Mall Segment losses reduced as it pivots to profitable selection GMV bridge in Q2 2024 Adjusted EBITDA bridge in Q2 20241 PLN m PLN m -26.1% -41.4% -35.9% YoY change ● GMV down 35.9% YoY resulting from continued refocusing on profitable ● Logistic margin and rech
Slide 21: Q2 2024 key results: Allegro International Segment (allegro.cz and allegro.sk)
International Operations: allegro.cz & allegro.sk Q2 2024 key results: Allegro International Segment (allegro.cz and allegro.sk) GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate Q2 20241 PLN 355m +526.8% YoY 2.5m 1,097.1% YoY PLN 490 +80.6% YoY 5.37%4 -0.08pp YoY H1 20241 PLN 620m +993.2% YoY 6.
Slide 22: Reached 2.5 million Active Buyers on 3P marketplaces
International Operations: allegro.cz & allegro.sk Reached 2.5 million Active Buyers on 3P marketplaces, of which over 1.7 million newly attracted to the Group Active Buyers 268.8% 106.7% 26.8% 23.9% (period end)1 m ● First full quarter of allegro.sk operations which launched in Q1, with marketing su
Slide 23: Q2 saw 34% sequential GMV growth as Allegro.sk contributes a first full quarter
International Operations: allegro.cz & allegro.sk Q2 saw 34% sequential GMV growth as Allegro.sk contributes a first full quarter GMV 243.9% 110.6% -35.6% 34.4% PLN m ● GMV up by over 34% QoQ and 6.3x higher YoY Revenue 404.3% 128.6% -22.7%1 4.9%1 ● FX headwind on GMV from strengthening PLN in Q2 PLN
Slide 24: Q2 2024 key results: International Operations
International Operations Q2 2024 key results: International Operations1 (Allegro International Segment and Mall Segment) GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q2 2024 PLN 767m +3.2% YoY 5.4m +26.1% YoY2 PLN 661 -26.8% YoY3 5.79%4 -5.53pp YoY H1 2024 1,502m -2.6% YoY 7.43% -4.55pp YoY R
Slide 25: Q2 2024 key results: Consolidated Group
Group Consolidated Q2 2024 key results: Consolidated Group1 GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q2 2024 PLN 15,810m +11.1% YoY PLN 20.3m +9.3% YoY 3,015 -0.39pp YoY 12.36% +1.13pp YoY H1 2024 PLN 30,115m +10.0% YoY 12.24% +1.10pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Margin C
Slide 26: Delevered a further 0.34x QoQ to 1.0x
Group Consolidated Delevered a further 0.34x QoQ to 1.0x, supported by strong cash flow generation, providing room to invest for growth in key areas PLN m (unaudited) 30.06.2023 31.12.2023 31.03.2024 30.06.2024 LTM1 Adjusted EBITDA Polish Operations 2,569.1 2,957.6 3,177.2 3,412.2 ● Leverage drop dri
Slide 27: Management outlook
Management outlook 27
Slide 28: Q3 2024 outlook
Q3 2024 outlook Polish marketplace GMV growth accelerating in Q3, but into a windfall headwind from eBilet Polish Operations International Operations3 Group consolidated Q2’24 Q2’24 Q2’24 Q2’24E Actual Q3’24E Q2’24E Actual Q3’24E Q2’24E Actual Q3’24E GMV 10-11% 11.6% 10-11% 3-6% YoY 3.2% 3-6% YoY 9-
Slide 29: Q&A
Q&A 29
Slide 30: Thank you
Upcoming investor meeting opportunities: NYC & Boston | 25-27 September BofA investor meetings London & Edinburgh | 30 September - 1 October Barclays investor meetings Vienna | 8-9 October Erste Finest CEElection Conference Warsaw | 16 October Trigon Investor Conference Thank you Online | 14 Novembe
Slide 31: Appendix | Expanded group structure explained
Appendix | Expanded group structure explained Consolidated Group: ALLEGRO.EU Polish Operations International Operations Reportable segment Allegro Ceneo Other Mall Allegro 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 & allegro.sk (ex