Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q4 2023 Earnings Presentation
36 slides from Allegro.eu's earnings presentation, Mar 14, 2024
Slide 1: Allegro.eu Q4 2023 Results presentation
| 1 Allegro.eu Q4 2023 Results presentation 14 MARCH 2024
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 | 33
Slide 4: Highlights
Highlights 4
Slide 5: Foundations laid to underpin growth aspirations
FY Polish Adj EBITDA up 28% to ca. PLN 3.0bn, leverage reduced to 1.8x Foundations laid to underpin growth aspirations 2023 annual performance highlights GROUP GMV PLN 58.4bn REVENUE PLN 10.3bn ADJ. EBITDA2 PLN 2.5bn CAPEX3 PLN 0.5bn PLN 662m PLN 56m 2,958m PLN 35m n/a n/a +28.1% YoY n/a PLN 3,031m
Slide 6: Buyer loyalty drove GMV growth above the total retail market
Continued focus on buyers’ loyalty drove GMV growth above the total retail market Q4 2023 Top Line Highlights1 ● GMV growth in Poland outpaced total retail market3 by Active Buyers GMV per Active Buyer 3.3x, thanks to continued growth in both Active Buyers Group 19.6m Group PLN 3.0k and average spen
Slide 7: Polish Adjusted EBITDA reaches PLN 906m for Q4
Polish Adjusted EBITDA reaches PLN 906m for Q4 as GMV margin expands to 5.8% Q4 2023 Profitability, Cash-flow and Leverage Highlights1 ● Excellent progress on Adj. EBITDA in Poland driven by Adjusted EBITDA progress on Take Rates, high margin Advertising, cost Group +12.5% and productivity focus Pol
Slide 8: Seven Priorities were foundation for Management's focus in 2023
Seven Priorities were foundation for Management’s focus in 2023 POLAND CE-51 Win in Czechia / Slovakia 1 Strong in Poland 2 GROWTH with our marketplace model 3 Scale up Allegro Pay Improve Smart! 4 5 Mall 1P business turnaround and delivery economics COSTS 6 Fit to grow 7 People and Culture For 2024
Slide 9: No. 1 e-commerce platform in Poland
No. 1 e-commerce platform in Poland: enhancing the powerful flywheel in Allegro’s key market Strong in Poland PRIORITY 1 ● 596k new Active Buyers added YoY ● Nearly 150k merchants YTD3, up by 11% (+4.2%) in Poland YoY, with growing number of international CUSTOMERS MERCHANTS sellers ● Acceleration i
Slide 10: Excellent Advertising growth; Allegro Pay origination growth remains >40%
Excellent Advertising revenue growth >3.5x ahead of GMV Allegro Pay origination growth remains >40% YoY Strong in Poland: Advertising PRIORITY 1 Allegro Pay PRIORITY 3 Advertising revenue up by 31.2% YoY, >3.5x faster than GMV Origination business up 43% YoY to PLN 2.6bn in Q4 and reaching 1.66% of
Slide 11: Allegro.cz marketplace building traffic and brand awareness
Allegro.cz marketplace building traffic and brand awareness, with GMV more than doubling QoQ Winning with our multi-country marketplace model PRIORITY 2 ● 1.6m Active Buyers on allegro.cz (vs 0.8k ● c. 30k merchants2 on the platform, up by as of Q3), of which >60% new to the Group 10% QoQ CUSTOMERS
Slide 12: 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 3.5k machines installed ● Acceleration of annual subscription penetration driven by: ● One Box now covering vast majority of Smart! merchants ○ Allegro Family discontinued since July, wit
Slide 13: 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 ● Mall and CZC as merchants on allegro.cz, contributing strongly to ● “Fit to grow” project delivered its Q4 savings objectives the marketplace’s first Christmas peak in Czechia (>14% of
Slide 14: Continued commitment and comprehensive approach to ESG
Continued commitment and comprehensive approach to ESG throughout 2023 reflected in the MSCI rating upgrade to AAA #SustainableAllTogether All 4 People All 4 Planet All 4 Prosperity 3% 49% -5% nearly 150,000 adjusted gender pay gap sustainable packaging CO2e emission in Groups merchants selling on i
Slide 15: Financial results
Financial results 15
Slide 16: Q4 2023 key results: Polish Operations
Polish Operations Q4 2023 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q4 PLN 15,676m +8.5% YoY 14.6m +4.2% YoY PLN 3,739 +6.4% YoY 11.68% +0.77pp YoY FY’23 PLN 54,771m +10.9% YoY 11.48% +0.66pp YoY Revenue5 Adjusted EBITDA Adj. EBITDA / GMV margin Cash Conve
Slide 17: Added 596k Active Buyers YoY
Polish Operations Added 596k Active Buyers YoY, with shopper spend advancing on volume that offsets trading down Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 4.2% 6.4% 1.1% 0.4% 1.4% 1.2% 1.9% 2.3% 1.0% 1.1% QoQ YoY QoQ YoY 17
Slide 18: GMV in Poland up by 8.5% in Q4
Polish Operations GMV in Poland up by 8.5% in Q4, with high-frequency categories outperforming GMV1 PLN bn ● Full year GMV of PLN 54.8bn, up by 10.9% YoY 14.0% 14.0% 11.3% 10.5% 8.5% ● Weak Christmas demand and tough comps from war-related sales 5.4% 6.8% 11.5% 12.5% 13.9% dropped average transactio
Slide 19: Revenue growth led by marketplace, advertising and loan portfolio sales
Polish Operations Revenue1 growth led by marketplace, advertising and sales of consumer loans portfolios Revenue bridge1 Take Rate3 PLN m % 16.4% 31.2% 1.0% -3.7% 226.3% 18.4% Q4’23 Take Rate up by 0.77pp YoY, mainly from changes to co-financing and rate cards in July 2023 2 YoY 1.Includes Total Rev
Slide 20: Adjusted EBITDA up by 28.0% YoY
Polish Operations Adjusted EBITDA up by 28.0% YoY, driven by higher GMV and take rate as well as advertising and Allegro Pay contributions Adjusted EBITDA bridge in Q4 20231 PLN m ● Marketplace revenue reflecting GMV growth at higher YoY take rates 4.9% 5.8% 34.9% 37.8% ● Continued growth in contrib
Slide 21: Capex spend down by 23% YoY
Polish Operations Capex spend down by 23% YoY with focus on ROI metric and asset utilization Capital expenditures1 by type -22.9% PLN m 128.8 ● Delivery Experience and IT projects limited in 2023 99.2 with focus on utilization ● Warehouse consolidation and new office fit-outs completed in prior year
Slide 22: Q4 2023 key results: Mall Segment
International Operations: Mall Segment Q4 2023 key results: Mall Segment GMV Active Buyers2 LTM GMV / Active Buyer4 Take Rate5 Q4 PLN 912m -36.0% YoY 4.0m -3.9% YoY1 PLN 755 -19.4% YoY1 13.32% +0.96pp YoY FY’23 PLN 3,031 -22.5% YoY1 13.32% N/A7 Revenue Adjusted EBITDA Adj. EBITDA / GMV margin 1P Gro
Slide 23: Legacy Mall Segment GMV down in challenging market
International Operations: Mall Segment Legacy Mall Segment GMV down in challenging market for consumer discretionary GMV bridge in Q4 2023 Adjusted EBITDA bridge in Q4 20232 PLN m PLN m -34.8% -36.0% -36.0% YoY change ● Consumer discretionary spend under pressure, with Czech retail in real ● YoY Adj
Slide 24: Q4 2023 key results: allegro.cz
International Operations: allegro.cz Q4 2023 key results: allegro.cz (Allegro International Segment) GMV Active Buyers1 LTM GMV / Active Buyer2 Take Rate3 Q4 PLN 410m N/A4 1.6m N/A4 PLN 416 N/A4 6.41% N/A4 Q2-Q4 PLN 662m N/A4 6.60% N/A4 Revenue Adjusted EBITDA Adj. EBITDA / GMV margin Q4 PLN 37m N/A
Slide 25: Active buyers reach 1.6 million 5 months from launch
Allegro International Segment: allegro.cz Active buyers reach 1.6 million just 5 months from hard launch as traffic and volumes progress Active Buyers (period end)1 268.8% 106.7% m ● Allegro.cz gaining traction, reaching >1.6 million Active Buyers, of which 1 million newly acquired ● allegro.cz stan
Slide 26: Allegro.cz GMV more than doubled QoQ
Allegro International Segment: allegro.cz Allegro.cz marketplace GMV more than doubled QoQ to over PLN 410m GMV 243.9% 110.6% PLN m ● GMV growth driven by acquisition of new buyers, increase in share of returning customers and their average spend ● 3P marketplace gaining traction across demand funne
Slide 27: Q4 2023 key results: International Operations
International Operations Q4 2023 key results: International Operations1 (Allegro International Segment and Mall Segment) GMV Active Buyers3 LTM GMV / Active Buyer4 Take Rate5 Q4 PLN 1,264m -11.2% YoY 5.0m +19.2% YoY2 PLN 724 -22.7% YoY2 8.49% -3.87pp YoY FY’23 PLN 3,606 -7.8% YoY2 9.87% -2.17pp YoY
Slide 28: Q4 2023 key results: Consolidated Group
Group Consolidated Q4 2023 key results: Consolidated Group1 GMV Adjusted EBITDA Take rate Q4 PLN 16,940m +6.8% YoY PLN 751.8m +12.5% YoY 11.58% +0.65pp YoY FY’23 PLN 58,373m +11.2% YoY PLN 2,540.1m +18.0% YoY 11.44% +0.61pp YoY Revenue Adj. EBITDA / GMV margin Cash Conversion2 Q4 PLN 3,100m +0.6% Yo
Slide 29: Leverage step down to 1.83x in Q4
Group Consolidated Leverage step down to 1.83x in Q4 thanks to rising LTM EBITDA and lower capex PLN m (unaudited) 31.12.2022 30.06.2023 30.09.2023 31.12.2023 ● Sequential step down in leverage thanks to 2,569.1 2,759.5 2,957.6 exceptional EBITDA growth in Q4’2023 and 23.4% LTM1 Adjusted EBITDA Poli
Slide 30: Management outlook
Management outlook 30
Slide 31: Medium term business objectives
Medium term business objectives Grow Core Build New Expand Ensure Solid Marketplace Engines Internationally Fundamentals Easy and safe to shop, Strong advertising Systematic introduction Groupwide system simple to sell of our asset-light architecture & software Low cost and reliable marketplace deve
Slide 32: Medium term aspirations
Medium term aspirations Growth and Profitability Capital allocation ● Continue profitable growth in Poland, focusing on under- From Polish Adjusted EBITDA, invest: indexed categories, to deliver low double-digit ● Up to 20% to fund International Operations GMV CAGR ○ Marketplace start-up investments
Slide 33: Q1 2024 outlook
Q1 2024 outlook Polish Operations International Operations3 Group consolidated Q4’23 Q4’23 Q4’23 Q4’23E Actual Q1’24E Q4’23E Actual Q1’24E Q4’23E Actual Q1’24E GMV 9-11% 8.5% 9-10% 10-14% 11.2% 3-5% YoY 7-9% 6.8% 8-9% YoY YoY YoY YoY YoY decline YoY YoY YoY growth growth growth decline decline growt
Slide 34: Q&A
Q&A 34
Slide 35: Thank you.
alleoro Thank you.
Slide 36: 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 (excl.