Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q3 2024 Earnings Presentation
32 slides from Allegro.eu's earnings presentation, Nov 14, 2024
Slide 1: Allegro.eu Q3 2024 results presentation
Allegro.eu Q3 2024 results presentation 14 November 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
Slide 3: Agenda
Agenda Highlights Financial results: Polish Operations International Operations Group Management outlook Q&A | 33
Slide 4: Highlights
Highlights 4
Slide 5: Polish marketplace GMV accelerated to 12.3% YoY for Q3
Polish marketplace GMV accelerated to 12.3% YoY for Q3 while eBilet prior year windfall trims growth in Poland to 10.8% YoY overall Q3 2024 Top Line Highlights1 ● Active Buyers advance 0.2 million QoQ to 20.5m across the Active Buyers GMV per Active Buyer Group and reach nearly 15 million in Poland
Slide 6: Polish Adj EBITDA/GMV margin holds at 6.00% in Q3; leverage falls to 0.95x
Polish Adj EBITDA/GMV margin holds at 6.00% in Q3 Leverage falls to 0.95x as Group Investment rebounds 91% YoY to PLN 182 million Q3 2024 Profitability, Cash-flow and Leverage Highlights1 ● Polish Adj. EBITDA / GMV margin again above the mid- Adjusted EBITDA term target at 6.00% for Q3 (up by 0.13pp
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 architecture
Slide 8: Strengthening the core marketplace proposition for buyers and merchants
Strengthening the core marketplace proposition Grow Core Marketplace for buyers and merchants… 1.Easy and safe to shop, simple to sell 2. Increasingly loyal customers ● Priority categories (Supermarket and Health & Beauty) ● New frequency drivers for Q3: better basket Best selection, Buyers’ outperf
Slide 9: While investing in new engines to further support business performance
… while investing in new engines to further support Build New Engines business performance 3. Advertising powering ahead 4. Seamless fintech solutions 5. Low cost and reliable delivery ● Advertising revenue continues to grow over ● PLN 2.7bn of loans originated in Q3 (up by 33% ● White Label Courier
Slide 10: Allegro opens a third marketplace in Hungary; Mall pivot to lean merchant
International Operations Allegro opens a third marketplace in Hungary Expand Internationally Focus on Mall pivot to lean merchant model 6. Systematic introduction of our asset-light marketplace 7. Complete Mall Segment turnaround Allegro marketplace now operating Mall as a lean merchant on Allegro i
Slide 11: We continue to work on operational excellence
Group We continue to work on operational excellence Ensure Solid Fundamentals 8. Groupwide system architecture & software development processes 9. People & Culture, ESG 3.5k machines HOW WE SHOW HOW WE GROW installed COMMITMENT grafika tbu HOW WE WORK HOW WE WORK WITH OTHERS ● Launched unified budge
Slide 12: Financial results
Financial results 12
Slide 13: Q3 2024 key results: Polish Operations
Polish Operations Q3 2024 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q3 2024 PLN 14,706m +10.8% YoY 14.9m +3.2% YoY PLN 3,950 +6.8% YoY 12.51% +0.60pp YoY 9M 2024 PLN 43,330m +10.8% YoY 12.41% +1.02pp YoY Revenue5 Adjusted EBITDA Adj. EBITDA / GMV Margin Ca
Slide 14: Growth underpinned by 6.8% higher average spend from nearly 15 million Active Buyers
Polish Operations Growth underpinned by 6.8% higher average spend from nearly 15 million Active Buyers Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 3.2% 6.8% 1.2% 0.9% 0.7% 0.4% 1.1% 1.4% 2.1% 2.1% QoQ YoY QoQ YoY 14
Slide 15: Polish GMV up by 10.8% for Q3
Polish Operations Polish GMV up by 10.8% for Q3, with core marketplace in Poland accelerating to 12.3%, but into windfall sales from the ticketing subsidiary in the comparative period GMV1 PLN bn ● LTM GMV of PLN 59.0bn, up by 10.2% YoY and advancing by PLN 1.4bn QoQ 10.5% 8.5% 10.0% 11.6% 10.8% ● P
Slide 16: Revenue up by 17.1%, driven by marketplace and advertising
Polish Operations Revenue1 up by 17.1%, driven by marketplace and advertising, further supported by logistics services2 and sales of consumer loans Revenue bridge Take Rate5 PLN m % 16.7% 30.3% 14.7% -18.2% 45.5% 17.1% ● Q3’24 Take Rate up by 0.60pp YoY, driven by main rate card and co-financing cha
Slide 17: Solid and in-line Adjusted EBITDA, up by >13% YoY
Polish Operations Solid and in-line Adjusted EBITDA, up by >13% YoY, supported by rising GMV at higher Take Rate, robust advertising performance and contribution from Allegro Pay ● Lapping Q3 take rate increases takes PLN 95 million Adjusted EBITDA bridge in Q3 20241 from marketplace contribution to
Slide 18: Capex spend growing 80% from last year's lows
Polish Operations Capex spend growing 80% from last year's lows ROI and asset utilization remain key decision drivers Capital expenditures1 by type PLN m 80.2% 144.4 ● Capital expenditures up by PLN 64.3, or 80% vs last year’s lows, but well within the medium-term guardrail 80.1 of up to 20% of Poli
Slide 19: Q3 2024 key results: Mall Segment
International Operations: Mall Segment Q3 2024 key results: Mall Segment GMV Active Buyers1 LTM GMV / Active Buyer Take Rate Q3 2024 PLN 410m -34.6% YoY 3.5m -13.3% YoY PLN 641 -26.5% YoY 12.22% -1.52pp YoY 9M 2024 PLN 1,347m -36.5% YoY 11.56% -1.76pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Ma
Slide 20: Mall segment loss stable QoQ despite aggressive stock sell-outs
International Operations: Mall Segment Mall segment loss stable QoQ despite aggressive stock sell-outs GMV bridge in Q3 2024 Adjusted EBITDA bridge in Q3 20241 PLN m PLN m -29.5% -30.9% -34.6% YoY change ● GMV down 34.6% YoY driven by continued rightsizing of the legacy ● Mall loss up PLN 2.4 millio
Slide 21: Q3 2024 key results: Allegro International Segment
International Operations: allegro.cz & allegro.sk Q3 2024 key results: Allegro International Segment1 (allegro.cz and allegro.sk) GMV Active Buyers3 LTM GMV / Active Buyer4 Take Rate Q3 2024 PLN 384m +97.2% YoY 2.8m 263.8% YoY PLN 505 +54.6% YoY 7.41% +0.07pp YoY 9M 20242 PLN 1004m +299.0% YoY 6.72%
Slide 22: Allegro.cz and allegro.sk reached over 2.8 million Active Buyers
International Operations: allegro.cz & allegro.sk Allegro.cz and allegro.sk reached over 2.8 million Active Buyers, of which over 2 million newly attracted to the Group Active Buyers 106.7% 26.8% 23.9% 12.1% (period end)1 m ● Added >300k Active Buyers QoQ, now reaching 2.8 million customers, driven
Slide 23: Slowing GMV growth dynamic in Q3 as margins improve
International Operations: allegro.cz & allegro.sk Slowing GMV growth dynamic in Q3 as margins improve GMV 110.6% -35.6% 34.4% 8.2% PLN m ● GMV up by over 8% QoQ and nearly 2x higher YoY ● FX headwind on GMV from strengthening PLN in Q3 lowered GMV by -1.37pp vs Q2 and -1.90pp vs Q1 Revenue 128.6% -2
Slide 24: Q3 2024 key results: International Operations
International Operations Q3 2024 key results: International Operations1 (Allegro International Segment and Mall Segment) GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q3 2024 PLN 764m -4.3% YoY 5.5m +23.8% YoY2 PLN 638 -24.3% YoY 8.24% -1.68pp YoY 9M 2024 PLN 2,266m -3.2% YoY 7.73% -3.31pp YoY
Slide 25: Q3 2024 key results: Consolidated Group
Group Consolidated Q3 2024 key results: Consolidated Group1 GMV Active Buyers2 LTM GMV / Active Buyer Take Rate Q3 2024 PLN 15,458m +9.9% YoY PLN 20.5m +8.1% YoY PLN 3,053 +0.9% YoY 12.39% +0.52pp YoY 9M 2024 PLN 45,573m +10.0% YoY 12.29% +0.90pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV Margin
Slide 26: Increasing flexibility to invest in growth as leverage falls to 0.95x
Group Consolidated Increasing flexibility to invest in growth as leverage falls further to 0.95x PLN m (unaudited) 30.09.2023 31.12.2023 30.06.2024 30.09.2024 LTM Adjusted EBITDA Polish Operations 2,759.5 2,957.6 3,412.2 3,517,0 ● Leverage drop driven by solid LTM EBITDA growth and robust cash conve
Slide 27: Management outlook
Management outlook 27
Slide 28: Commentary to Q4 2024 Outlook
Group Consolidated Commentary to Q4 2024 Outlook Polish Operations ● Pulling multiple levers to continue accelerating YoY GMV growth ● GMV growth at 11-13% YoY compares to 8.5% for Q4 2023 and reflects sequential improvement throughout 2024 ● All 2023 monetization moves already lapped ● Adjusted EBI
Slide 29: Q4 2024 outlook
Q4 2024 outlook Polish Operations International Operations3 Group consolidated Q3’24 Q3’24 Q3’24 Q3’24E Actual Q4’24E Q3’24E Actual Q4’24E Q3’24E Actual Q4’24E GMV 10-11% 10.8% 11-13% 3-6% 4.3% 25-28% 9-10% 9.9% 8-10% YoY YoY YoY YoY YoY YoY YoY YoY YoY growth growth growth decline decline decline g
Slide 30: Q&A
Q&A 30
Slide 31: Thank you
Upcoming investor meeting opportunities: London | 19 November Goldman Sachs CEEMEA Conference Barcelona | 21-22 November Morgan Stanley European TMT Conference Prague | 4-5 December WOOD's Winter Wonderland EMEA Conference London | 8-9 January Citi 2025 Emerging Europe Conference Lyon | 10 January O
Slide 32: 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 + allegro.sk + (