Allegro.eu S.a. · GPW:ALE

Allegro.eu — Q4 2021 Earnings Presentation

27 slides from Allegro.eu's earnings presentation, Feb 24, 2022

  1. Slide 1: Allegro.eu Q4 2021 Results presentation

    | 1 Allegro.eu Q4 2021 Results presentation 24 February 2022

  2. 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

  3. Slide 3: Agenda

    | 3 Agenda 1 2 Highlights Financial results 3 4 Financial Development outlook plans 5 Q&A

  4. Slide 4: Q4 2021 Highlights

    | 4 1 Q4 2021 Highlights Strong Q4’21 growth on GMV and revenue despite tough comparative GMV +16.7% YoY, +35.6% 2-year CAGR given last year’s lockdown Revenue +23.2% YoY, +41.0% 2-year CAGR Continued growth in Active Buyers and average annual spend per Active Buyers +2.9% YoY, +0.7% QoQ buyer as st

  5. Slide 5: Q4 2021 and FY 2021 key results

    | 5 1 Q4 2021 and FY 2021 key results GMV Active Buyers1 GMV per Active Buyer2 Take Rate3 PLN 12,669m Q4’21 13.5m Q4’21 PLN 3,158 Q4’21 9.84% Q4’21 +16.7% YoY +2.9% YoY +18.0% YoY +0.41pp YoY PLN 42,602m FY’21 10.23% FY’21 +21.3% YoY +0.96pp YoY Revenue Adjusted EBITDA Adjusted EBITDA / GMV margin C

  6. Slide 6: Proven ability to grow selection, ensure price competitiveness and improve convenience and delivery speed

    | 6 1 Proven ability to grow selection, ensure price competitiveness and improve convenience and delivery speed in a capital-light 3P model Further selection growth Price competitiveness Improving convenience Improving delivery speed in capital-light model +7pp % of parcels delivered next day Q4 Q4

  7. Slide 7: Reaching the milestone of over 5 million Smart! customers and exceeding Allegro Pay loans

    | 7 1 Reaching the milestone of over 5 million Smart! customers and exceeding Allegro Pay loans origination target Growing the user base Improving Smart! for customers Expanding Allegro Pay  Crossed 5 million Smart! customers, driven by  NPS1 of 92 reflecting superb customer  Outperforming financ

  8. Slide 8: Smart! customers drive top-line growth and incremental profitability, accelerating the flywheel

    | 8 1 Smart! customers drive top-line growth and incremental profitability, accelerating the flywheel Pre-Smart! user1 user1 Values are indexed1 Flywheel effects 84.0 184.0  More merchants joining Allegro GMV  Merchants improve quality to join Smart! 100.0  Non-Smart! join Smart! as engagement na

  9. Slide 9: Continued commitment and comprehensive approach to ESG responsibility

    | 9 1 Continued commitment and comprehensive approach to ESG responsibility reflected in significant progress made in FY 2021 Snapshot of key 2021 ESG actions Reporting: 2021 Non-Financial Report with extensive ESG disclosures; Allegro.eu’s 2020 ESG Report in accordance with international reporting

  10. Slide 10: Continued growth in average annual spend per Buyer driven by customer stickiness

    | 10 2 Continued growth in average annual spend per Buyer driven by customer stickiness and further potential for higher wallet share as secular shift to online continues Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN 2.9% 18.0% 1.7% -0.3% 0.7% 0.7% 3.4% 3.8% 6.8% 2.9% 13.1 1

  11. Slide 11: Q4 GMV grew 16.7% YoY into COVID-19 headwinds, with 2-year CAGR accelerating to 35.6%

    | 11 2 Q4 GMV grew 16.7% YoY into COVID-19 headwinds, with 2-year CAGR accelerating to 35.6% GMV PLN bn 57.5% 46.1% 10.6% 19.9% 16.7%  LTM GMV up by 21.3% YoY, reaching PLN 42.6bn  Slight QoQ deceleration in Q4 as expected, given 40.2% 40.5% 37.7% 33.5% 35.6% presence of lockdown in 7-27 November

  12. Slide 12: Revenue up by 23.2% YoY in Q4 and up by 33.9% YoY for FY 2021

    | 12 2 Revenue up by 23.2% YoY in Q4 and up by 33.9% YoY for FY 2021 Revenue Quarterly revenue structure PLN m PLN m 33.9% 61.2% 61.1% 28.4% 32.9% 23.2% 5,352.9 1,600.7 1.3% 3,997.8 9.6% 3.4% 1,299.0 0.5% 1,308.1 0.4% 1,210.2 0.4% 1,233.9 0.8% 4.9% 8.7% 3.1% 9.1% 4.1% 8.9% 2.9% 8.4% 23.2% 85.7% 1,60

  13. Slide 13: Revenue growth driven by marketplace, advertising and retail

    | 13 2 Revenue growth driven by marketplace, advertising and retail Revenue Bridge Take Rate1 PLN m % 21.5% 29.3% -13.6% 44.2% 235.6% 23.2%  Full year take rate up 0.96pp at 10.23, with seasonal drop off in Q4 as expected  Higher pay-for-performance rebates and lower 34.6 43.5 14.7 1,600.7 217.5 y

  14. Slide 14: Dip in Q4 EBITDA YoY reflects delayed monetization of Smart! investments

    | 14 2 Dip in Q4 EBITDA YoY reflects delayed monetization of Smart! investments, and marketing and team expansion Adjusted EBITDA bridge in Q4 2021 PLN m 4.92% 3.96%  Take-rate up by 0.41pp YoY as % of GMV margin supported from co-finance on lockers ~257.5 32.7  Customer-centric move to delay revi

  15. Slide 15: FY2021 EBITDA advances 18.2% to PLN 2,068m

    | 15 2 FY2021 EBITDA advances 18.2% to PLN 2,068m driven by GMV growth, marketplace monetization and advertising revenue Adjusted EBITDA bridge in FY 2021 PLN m 4.98% 4.86%  0.96pp of GMV accretion from growing take rate, of which 0.51pp from co-finance 127.6 1,088.2  Margin-accretive mix of adver

  16. Slide 16: Adjusted EBITDA down by 6.1% YoY in Q4 2021 and up by 18.2% in FY 2021

    | 16 2 Adjusted EBITDA down by 6.1% YoY in Q4 2021 to PLN 501m and up by 18.2% in FY 2021, reaching PLN 2,068m 38.8% 50.6% 23.8% 15.5% -6.1% 18.2% 2,068.5 Adjusted EBITDA1 1,750.0 PLN m 533.5 535.6 559.9 471.7 501.2 Q4 Q1 Q2 Q3 Q4 2020 2021 2020 2021 2021 2021 2021 % Margin 41.1% 44.3% 42.8% 38.2% 3

  17. Slide 17: EBITDA adjustments during Q4 2021

    | 17 2 EBITDA adjustments during Q4 2021 Reconciliation of Adjusted EBITDA [PLN m] 2021 2020 Change % Q4 2021 Q4 2020 Change % 1 Cost of first annual share awards in 2021, with IPO one-off share grant Adjusted EBITDA 2,068.5 1,750.0 18.2% 501.2 533.5 (6.1%) in 2020 Monitoring costs - (1.8) (100.0%)

  18. Slide 18: Investing in platform improvements and One by Allegro to drive future growth

    | 18 2 Investing in platform improvements and One by Allegro to drive future growth and optimize costs Capital expenditures1  PLN 20.4m spent in FY 2021 on One Fulfillment by type 76.6% and PLN 80.9m on One Box green parcel lockers PLN m by Allegro – aimed at faster deliveries and 407.1 incremental

  19. Slide 19: Further organic deleveraging down to 1.8x

    | 19 2 Further organic deleveraging down to 1.8x [PLN m] Dec-20 Sep-21 Dec-21  Year end cash position reflects PLN 181.3m in receipts from Allegro Pay loan sales to AION bank in December Adjusted EBITDA LTM 1,750.0 2,100.7 2,068.5 2021 Borrowings at amortised cost 5,437.8 5,344.0 5,366.3  Mall acq

  20. Slide 20: Delivery of 2021 financial performance in line with raised expectations

    | 20 3 Delivery of 2021 financial performance in line with raised expectations. Continued strong growth expected on top and bottom line in 2022 FY 2021E FY 2021E FY 2021A FY 2022E After FY 2020 After Q1 2021 Actual Expected GMV High teens% High teens-Low 20s% 21% High teens-Low 20s% YoY growth YoY g

  21. Slide 21: Strategic priorities: continued growth of our unique 3P business model with 1P experience

    | 21 4 Strategic priorities: continued growth of our unique 3P business model with 1P experience What we do? Why we do it? Long-term objectives to 2026 Advanced Technology & Solutions Benchmark for Selection, Price & Convenience Value Selling New tools & process to ease selling Focus on • Expanding

  22. Slide 22: Strategic priorities: optimize delivery for next day and unit cost

    | 22 4 Strategic priorities: optimize delivery for next day and unit cost, scaling platform 3P solutions and using targeted asset investments to close gaps where needed What we do? Why we do it? Long-term objectives to 2026 Fulfillment  Pilot phase of One Fulfillment with  Enabling domestic next d

  23. Slide 23: Strategic priorities: Allegro Pay and financial services

    | 23 4 Strategic priorities: Allegro Pay and financial services What we do? Why we do it? Long-term objectives to 2026  Increase number of consumer finance users  Fintech as natural extension of Allegro platform  Allegro Pay GMV share of total Allegro and volumes to drive GMV growth  Improved cu

  24. Slide 24: Strategic priorities: International

    | 24 4 Strategic priorities: International What we do? Why we do it? Long-term objectives to 2026 Mall Group  Ongoing Mall Group Integration  Significantly increase total addressable  3P GMV share rising to at least 2/3rd  Add multiple languages with Mall market  ~30-40% GMV CAGR accelerated by

  25. Slide 25: Allegro medium-term expectations 2023-2026

    | 25 4 Allegro medium-term expectations 2023-2026, a path to over PLN 100bn GMV by 2026 Of which Mall Group Total contribution GMV % CAGR 2022-26 Low 20s% ~2pp Revenue % CAGR 2022-26 High teens% ~(3-4pp)1 Adjusted EBITDA % CAGR 2022-26 Mid-to-High 20s% ~3-4pp Capital Investment PLN m per annum ~1,00

  26. Slide 26: Questions & Answers

    | 26 5 Questions & Answers

  27. Slide 27: Thank you

    | 27 Thank you

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