Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q4 2022 Earnings Presentation
27 slides from Allegro.eu's earnings presentation, Mar 30, 2023
Slide 1: Allegro.eu Q4 2022 Results presentation
Allegro.eu Q4 2022 Results presentation 30 March 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
Highlights Financial results: Polish Operations Mall Segment Group Management outlook Agenda Q&A | 3
Slide 4: Highlights
Highlights | 4
Slide 5: Polish GMV up 14% YoY, with Adjusted EBITDA growing by 41% YoY
Polish GMV up 14% YoY, with Adjusted EBITDA growing by 41% YoY Q4 2022 Financial Highlights Everyday shopping selection and attractive prices make Allegro Consolidated1 GMV: 25.2% YoY (+14.0% YoY ex. Mall Segment2) performance resilient despite challenging Polish macro Consolidated Revenue: +92.6% Y
Slide 6: Management continues to work on Seven Priorities
Management continues to work on Seven Priorities Poland CE-51 Framework to report progress across the 1 Strong in Poland 2 Win in Czechia / Slovakia with our marketplace model organization Growth 3 Scale up Allegro Pay 4 Improve Smart! and delivery economics 5 Mall 1P business turnaround Costs 6 Fit
Slide 7: Growth Priority 1: Strong in Poland
Growth Priority 1: Focus on customers in difficult times help us make progress on Strong in Poland Priority 1 Retail basics Advertising Grow selection Sharp pricing Improve convenience • Double-digit YoY growth in new • Go-to platform for online • Received Star of Customer • Advertising revenues up
Slide 8: Growth Priorities 2 and 3: Czech platform launch and Allegro Pay
Growth Priorities 2 and 3: 3P Czech platform launch on track. Allegro Pay again outperformed targets Priority 2 Priority 3 3P launch in CE-5 Allegro Pay • Launched Smart! in Mall to introduce Czech customers to free shipping • Outperforming financial targets in FY 2022: subscription program ahead of
Slide 9: Cost Priorities 4, 5 and 6: Improving efficiency and Mall 1P turnaround
Cost Priorities 4, 5 and 6: Improving efficiency and Mall 1P turnaround Priority 4 Priority 5 Priority 6 Smart! Delivery experience Mall 1P turnaround Fit to grow Smart! pricing changes helps to • Strong Christmas peak • Broad cost optimisation in • Strong focus on cost savings, offset the indexatio
Slide 10: Commitment and comprehensive approach to ESG driving MSCI rating upgrade to AA
Commitment and comprehensive approach to ESG driving MSCI rating upgrade to AA MSCI ESG Rating upgrade Environmental outputs Diversity & Inclusion to AA from A • Climate targets approved by SBTi1 • Allegro among Diversity Leaders o Reduction of scope 1 and 2 GHG2 emissions by 38% recognised by the F
Slide 11: Financial results
Financial results | 11
Slide 12: Q4 and FY 2022 key results: Polish Operations
Polish Operations Q4 and FY 2022 key results: Polish Operations1 GMV Active Buyers2 GMV per Active Buyer3 Take Rate4 PLN 14,443m Q4’22 14.1m Q4’22 PLN 3,515 Q4’22 10.91% Q4’22 +14.0% YoY +4.2% YoY +11.3% YoY +1.06pp YoY PLN 49,389m FY’22 10.82% FY’22 +15.9% YoY +0.59pp YoY Revenue Adjusted EBITDA Ad
Slide 13: Nearly 245k new Active Buyers added in Q4
Polish Operations Nearly 245k new Active Buyers added in Q4, with rising average annual spend, underscores resilient demand for Allegro's wide selection at attractive prices Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN m 11.3% 4.2% -0.5% 1.2% 1.7% 1.8% 2.9% 1.9% 3.4% 2.6% 1
Slide 14: Q4 Polish GMV grew by 14.0% despite retail sales slowing
Polish Operations Q4 Polish GMV grew by 14.0% for Q4 2022 despite retail sales slowing by 6.4pp1 GMV2 • LTM GMV3 was PLN 49.4bn, up 15.9% YoY and advancing by PLN bn nearly PLN 1.8bn QoQ • Some YoY slow-down visible over November and December 16.7% 12.8% 16.0% 21.4% 14.0% as anticipated • GMV growth
Slide 15: Revenue growth driven by marketplace, advertising and retail
Polish Operations Revenue growth driven by marketplace, advertising and retail Revenue Bridge Take Rate1 PLN m % 26.0% 29.7% 10.4% 32.9% 32.3% 26.5% • Q4’22 Take Rate up by 1.06pp YoY, resulting from monetization initiatives introduced in Q1 and Q3, seasonally lower QoQ 45.3 5.6 46.7 6.8 2 025.0 319
Slide 16: Adjusted EBITDA grew by 41% YoY in Q4
Polish Operations Adjusted EBITDA grew by 41% YoY in Q4 mainly driven by success fee and co-financing increases combined with improving SG&A efficiency Adjusted EBITDA bridge in Q4 20221 • GMV growth at higher take rates drive PLN m marketplace revenue growth • Growing contribution of margin-accreti
Slide 17: Capital investment down in Q4 driven by capex controls and optimisation
Polish Operations Capital investment down in Q4 driven by capex controls and optimisation Capital expenditures1 • Refocus of Delivery Experience streams to by type improving network utilisation to drive 62.6% economics PLN m 662.0 • Office development projects completed by Q3 2022 407.1 369.4 • Fit-
Slide 18: Q4 and FY 2022 key results: Mall Segment
Mall Segment Q4 and FY 2022 key results: Mall Segment1 GMV Active Buyers3 GMV per Active Buyer5 Take Rate6 PLN 1,424m Q4’22 4.2m Q4’22 pro-forma2 PLN 936 pro-forma2 12.36% Q4’22 -5.5% YoY pro-forma2 -5.9% YoY pro-forma2 -0.4% YoY pro-forma2 N/A8 PLN 3,911m FY’22 pro-forma2 -6.3% YoY pro-forma2 Reven
Slide 19: Mall 1P business turnaround in progress
Mall Segment Mall 1P business turnaround in progress, with Q2-Q4 2022 results in line with expectations Mall Segment results Income Statement Q4 2021 Q2-Q4 2021 • Adjusted EBITDA loss seasonally lower in Q4 (down to PLN m (unaudited) pro-forma1 Q4 2022 pro-forma1 Q2-Q4 2022 -PLN 39.4m in Q4’22 vs -P
Slide 20: Q4 and FY 2022 key results: Consolidated Group
Group Consolidated Q4 and FY 2022 key results: Consolidated1 Group, including 9M (Q2-Q4) Mall Segment GMV Adjusted EBITDA Take rate PLN 15,867m Q4’22 PLN 668m Q4’22 10.93% Q4’22 +25.2% YoY +33.3% YoY +1.09pp YoY PLN 52,496m FY’22 PLN 2,153m FY’22 10.83% FY’22 +23.2% YoY +4.1% YoY +0.60pp YoY Revenue
Slide 21: Leverage down to 2.91x as of 2022 year end
Group Consolidated Leverage down to 2.91x as of 2022 year end driven by rising LTM EBITDA and extended scope of consumer loan sales Pro-forma1 • Rapid deleveraging from strong EBITDA growth, lower PLN m (unaudited) 31.12.2021 01.04.2022 30.09.2022 31.12.2022 YoY capex spend and working capital inflo
Slide 22: Management outlook
Management outlook | 22
Slide 23: Mid-term aspirations
Mid-term aspirations • Continue profitable GMV growth in Poland, focusing on under-indexed categories, to achieve a low double-digit GMV CAGR • Enhance the Polish marketplace model with expansion of Allegro Pay and increasing penetration of Advertising services • Priority focus on efficiency to move
Slide 24: 2023 key Priorities
2023 key Priorities: Strong Polish performance, launch the Allegro.cz, further reduce Group leverage 1 Strong in Poland Grow GMV with ca. a third of growth 2 Win in Czechia / Slovakia with our marketplace model 3 Scale up Allegro Pay Scale-up of Allegro Pay, financed Growth driven by under-indexed c
Slide 25: 2022 completed in line with expectations; quarterly outlook
2022 completed in line with expectations. Allegro switching policy to provide quarterly outlook Polish Operations Mall Segment3 Group Consolidated 2022 Q2-Q4 Q2-Q4 2022 2022 2022E Actual Q1’23E 2022E Actual Q1’23E 2022E Actual Q1’23E GMV 15-17% 15.9% 13-14% Low single- -2.5% 1-2% YoY 22-24% 23.2% 20
Slide 26: Q&A
Q&A | 26
Slide 27: Thank you
Thank you | 27