Allegro.eu S.a. · GPW:ALE

Allegro.eu — Q1 2025 Earnings Presentation

39 slides from Allegro.eu's earnings presentation, May 22, 2025

  1. Slide 1: Allegro.eu Q1 2025 results presentation

    Allegro.eu Q1 2025 results presentation 22 May 2025 1

  2. 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

  3. Slide 3: Agenda

    Agenda New CEO’s Remarks Highlights Financial Results: Polish Operations International Operations Group Management Outlook Key Takeaways Q&A | 33

  4. Slide 4: New CEO's Remarks

    New CEO’s Remarks 4

  5. Slide 5: Marcin Kuśmierz: New CEO's Remarks

    New CEO’s Remarks ● Warm reception from employees, merchants and partners Marcin ● Main focus areas during my onboarding: Kuśmierz 1 | Accelerating growth in Poland and CEE ● 25+ years in the technology, 2 | Developing the business with new product e-commerce, fintech and AI industries and service ca

  6. Slide 6: Highlights

    Highlights 6

  7. Slide 7: Top line development on track with Polish revenue rising 15% driven by 8.9% GMV growth

    Top line development on track with Polish revenue rising 15% driven by 8.9% GMV growth, stronger Take Rate and rising penetration of advertising sales Q1 2025 Top Line Highlights1 ● Polish GMV grew 8.9% for Q1, outpacing by over 3x nominal Active Buyers GMV per Active Buyer retail growth of of 2.5%3

  8. Slide 8: Q1 Polish Adj. EBITDA/GMV margin at 5.82%, with impact from March co-financing increases

    Q1 Polish Adj. EBITDA/GMV margin at 5.82%, with impact from March co-financing increases set to lift profitability for the remainder of 2025 Q1 2025 Profitability, Cash-flow and Leverage Highlights1 ● Polish Adj. EBITDA up by 4.8% YoY with GMV margin of 5.82% Adjusted EBITDA lower 0.23pp YoY (up 0.20pp

  9. Slide 9: 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 4. Seamless fintech introducti

  10. Slide 10: Buyers' preferred marketplace, with consistently outstanding NPS

    Buyers’ preferred marketplace, with consistently outstanding NPS Grow Core Marketplace 1. Easy and safe to shop, simple to sell 2. Increasingly loyal customers ● Launched Automated Discount Program, ● Excellent rNPS result at 70 points (stable with 3 million attractive new deals added YoY), with 17p

  11. Slide 11: Excellent performance from Advertising and Fintech growth engines

    Excellent performance from Advertising and Fintech growth engines… Build New Engines 3. Strong Advertising 4. Seamless fintech solutions ● Advertising revenue growth continued to outpace GMV at +29% ● Loan origination up 19.6% YoY to PLN 2.8bn in Q1 YoY, reaching 2.0% of GMV for Q1 (+0.32pp YoY) ● GM

  12. Slide 12: … with strong focus and further progress in delivery experience

    … with strong focus and further progress in delivery experience Build New Engines 5. Low cost and reliable delivery Allegro One Box - Excellent customer satisfaction with consistently high NPS: ● Reached >5k One Boxes in Poland and almost 700 in Czechia as of Q1, with rapidly growing volumes and uti

  13. Slide 13: Promising results of frequency-focused initiatives in International

    International Operations Promising results of the frequency-focused initiatives in International. Expand Internationally Delivered key milestones in transformation of Mall into a lean merchant 6. Systematic introduction of our asset-light marketplace 7. Complete Mall Segment turnaround ● Reached 3.7

  14. Slide 14: Continued focus on operational excellence

    Group Continued focus on operational excellence Ensure Solid Fundamentals 8. Groupwide system architecture & software development processes 9. People & Culture, ESG ● Mall.cz & Mall.sk legacy platforms decommissioned and moved to ● Supported the Great Orchestra of Christmas Charity (WOŚP standardize

  15. Slide 15: Financial Results

    Financial Results 15

  16. Slide 16: Q1 2025 key results: Polish Operations

    Polish Operations Q1 2025 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q1 2025 PLN 14,779m +8.9% YoY 15.1m +2.3% YoY PLN 4,097 +8.1% YoY 12.58% +0.40pp YoY Revenue5 Adjusted EBITDA Adj. EBITDA / GMV Margin Cash Conversion6 Q1 2025 PLN 2,393m +15.0% YoY PLN 85

  17. Slide 17: Added 340k Active Buyers in Poland YoY, with average annual spend growth up 8.1%

    Polish Operations Added 340k Active Buyers in Poland YoY, with average annual spend growth up 8.1% YoY to nearly PLN 4,100 Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN 2.3% 8.1% 0.7% 0.4% 0.8% 0.4% 2.1% 2.1% 2.1% 1.6% QoQ YoY QoQ YoY 17

  18. Slide 18: GMV in Poland up by 8.9% in Q1, with outperformance in high-frequency categories

    Polish Operations GMV in Poland up by 8.9% in Q1, with continued outperformance in high-frequency, lower ticket categories GMV1 PLN bn ● LTM GMV of PLN 61.9bn, up by 10.6% YoY and advancing by PLN 1.2bn QoQ 10.0% 11.6% 10.8% 10.9% 8.9% ● 8.9% GMV growth YoY reflects: 11.6% 12.5% 12.8% 13.1% 12.2% ○ W

  19. Slide 19: Revenue up by 15%, supported by marketplace, advertising and logistics services

    Polish Operations Revenue1 up by 15%, supported by marketplace, advertising and logistics services Revenue bridge Take Rate5 PLN m % Q1’25 Take Rate up by 0.40pp YoY, driven 12.5% 29.4% 199.6% 12.9% 11.1% -30.1% 15.0% mainly by co-financing increase implemented at the end of February 2024 ● Impact of

  20. Slide 20: Adjusted EBITDA up by 4.8% YoY, supported by higher GMV, Take Rate and advertising

    Polish Operations Adjusted EBITDA up by 4.8% YoY, supported by higher GMV, Take Rate and advertising contribution ● Revenue reflecting GMV growth at higher Take Rate with Adjusted EBITDA bridge in Q1 20251 continued contribution of highly margin accretive PLN m advertising 6.0% 5.8% ● Costs of delive

  21. Slide 21: Headwind from January indexations offset from March onwards

    Polish Operations Headwind from January indexations offset from March onwards, signalling higher margins for Q2 Cost of delivery: gross and net of co-financing As % of GMV +0.75pp 4.3% 5.1% 5.2% 5.1% 4.9% ● The highest priced supplier indexations for 2024 and 2025 lifted package costs from January ●

  22. Slide 22: Higher capex in line with medium-term aspirations

    Polish Operations Higher capex in line with the medium-term aspirations, reflecting focus on delivery projects and software while maintaining outstanding cash conversion Capital expenditures1 by type PLN m ● PLN 73.2m, or 63.5% YoY step up in Capex, driven 63.5% mostly by increased investments in new

  23. Slide 23: Q1 2025 key results: Allegro International Segment

    International Operations: allegro.cz, allegro.sk & allegro.hu Q1 2025 key results: Allegro International Segment1 (allegro.cz, allegro.sk and allegro.hu) GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate Q1 2025 PLN 480m +81.6% YoY 3.7m +81.8% YoY PLN 520 +13.3% YoY 7.21% -0.32pp YoY Revenue Adju

  24. Slide 24: Added 1.7 million Active Buyers YoY on Allegro international marketplaces

    International Operations: allegro.cz, allegro.sk & allegro.hu Added 1.7 million Active Buyers YoY on Allegro international marketplaces, with average annual spend reaching PLN 520 Traffic1 n/a 403.2% 117.0% 75.3% 57.9% ● Slower traffic growth in Q1 as internet marketing was Visits m dialled back pending

  25. Slide 25: International marketplaces demonstrated solid growth and profitability improvement

    International Operations: allegro.cz, allegro.sk & allegro.hu International marketplaces demonstrated solid growth and profitability improvement, with Adjusted EBITDA / GMV margin better by 8.4pp YoY GMV n/a1 526.8% 97.2% 67.9% 81.6% ● GMV growth accelerated QoQ as frequency and conversion PLN m n/a1

  26. Slide 26: Q1 2025 key results: Mall Segment

    International Operations: Mall Segment Q1 2025 key results: Mall Segment GMV Active Buyers1 LTM GMV / Active Buyer Take Rate Q1 2025 PLN 230m -53.4% YoY 2.9m -24.8% YoY PLN 518 -27.0% YoY 11.60% -2.72pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Margin 1P Gross Margin3 Q1 2025 PLN 220m -44.7% YoY

  27. Slide 27: Smaller Mall Segment loss YoY, despite GMV contracting 53%

    International Operations: Mall Segment Smaller Mall Segment loss YoY, despite GMV contracting 53% as the transformation to a lean merchant continues GMV bridge in Q1 2025 Adjusted EBITDA bridge in Q1 20251 PLN m PLN m -49.3% -65.2% -53.4% YoY change ● Mall GMV at PLN 229.9m, down 53.4% YoY reflected

  28. Slide 28: Q1 2025 key results: International Operations

    International Operations Q1 2025 key results: International Operations1 (Allegro International Segment and Mall Segment) GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q1 2025 PLN 669.3m -9.0% YoY 5.9m +14.5% YoY2 PLN 548 -20.3% YoY 7.55% -1.87pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Ma

  29. Slide 29: Q1 2025 key results: Consolidated Group

    Group Consolidated Q1 2025 key results: Consolidated Group1 GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q1 2025 PLN 15,445m +8.0% YoY 21.0m +5.4% YoY PLN 3,099 +3.7% YoY 12.43% +0.31pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Margin Cash Conversion Q1 2025 PLN 2,622m +5.9% YoY PLN 749.3

  30. Slide 30: Leverage down to 0.84x from 1.38x in Q1'24; PLN 1.4bn share buyback

    Group Consolidated Leverage down to 0.84x from 1.38x in Q1’24 securing financial liquidity PLN 1.4bn share buyback to be voted at the upcoming AGM PLN m (unaudited) 31.03.2024 31.12.2024 31.03.2025 LTM Adjusted EBITDA Polish Operations 3,177.2 3,586.5 3,625.6 ● Net leverage at 0.84x, up from 0.77x Qo

  31. Slide 31: Management Outlook

    Management Outlook 31

  32. Slide 32: On track to meet outlook for 2025

    Management Outlook On track to meet outlook for 2025 Top line metrics developing on track while profitability improvements will advance from Q2 International Operations Polish Operations Marketplaces Mall Segment Group Comments GMV Q1’25 Actual 9% growth 82% growth 53% decline 8% growth ● Poland: Q2

  33. Slide 33: Key Takeaways

    Key Takeaways 33

  34. Slide 34: Q1 performance in line with expectations, profitability set to accelerate

    Q1 performance in line with expectations, profitability set to accelerate to meet the 2025 Outlook 01 Polish trading improving with the Allegro platform typically resilient to market shocks 02 Material supplier indexations present a headwind from January, while co-financing increase bring a step up in

  35. Slide 35: Q&A

    Q&A 35

  36. Slide 36: Thank you

    Upcoming investor meeting opportunities: Warsaw | 23 May mBank Spring Conference Warsaw | 26-27 May Erste CEElection Equity Conference Online | 28 May Bank of America Consumer Apparel & E-Commerce Warsaw | 02 June Pekao SA Technology & Consumer Conference London | 9-10 June Thank you Barclays EMEA T

  37. Slide 37: Appendix | Expectations for FY 2025

    Appendix | Expectations for Expectations for FY 2025 Allegro returned to annual outlook policy International Operations1 Polish PLN / % Operations Marketplaces Mall Segment Group Comments GMV 66.2 - 67.4 bn 2.4 - 2.5 bn 0.6 - 0.8 bn 69.2 - 70.7 bn ● Steady organic growth in Poland 9-11% YoY growth 4

  38. Slide 38: Appendix | Medium-term aspirations

    Appendix | Medium-term aspirations Updated medium-term aspirations were published in March Growth and Profitability Investment funding guide rails ● Continue profitable growth in Poland, focusing on under-indexed From Polish Adjusted EBITDA, invest: categories, to deliver low double-digit GMV CAGR ● U

  39. Slide 39: Appendix | Group structure explained

    Appendix | 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 (excl. Allegro Internatio

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