Allegro.eu S.a. · GPW:ALE

Allegro.eu — Q4 2020 Earnings Presentation

27 slides from Allegro.eu's earnings presentation, Mar 4, 2021

  1. Slide 1: Allegro.eu Q4 2020 Results presentation

    | 1 Allegro.eu Q4 2020 Results presentation 4 March 2021

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

  4. Slide 4: Q4 2020 and FY 2020 highlights

    | 4 1 Q4 2020 and FY 2020 highlights Strong finish to FY 2020 driven by execution on retail basics, Smart! expansion and monetization initiatives:  Accelerating growth in Active Buyers to 13.0m, +14.2% YoY, and in LTM GMV per Active Buyer to PLN 2,699, +36% YoY. Customer service NPS rising to 77.6

  5. Slide 5: Q4 2020 and FY 2020 key results

    | 5 1 Q4 2020 and FY 2020 key results GMV Active Buyers GMV per Active Buyer1 Take Rate PLN 10,851m Q4’20 13.0 m PLN 2,699 9.44% Q4’20 +58% YoY +14.2% YoY +36.0% YoY +0.30pp YoY PLN 35,111m FY'20 9.27% FY'20 +54% YoY +0.01pp YoY Revenue Adjusted EBITDA Adjusted EBITDA margin Cash Conversion2 PLN 1,2

  6. Slide 6: Allegro – the Polish e-commerce business supporting society during a global crisis

    | 6 1 Allegro – the Polish e-commerce business supporting society during a global crisis Customers & Economy Society Environment merchants  One of Poland’s top brands  Employer of choice,  PLN 490m Allegro contribution  Updated CSR & Sustainability with 86% spontaneous brand developing Polish te

  7. Slide 7: COVID-19 update

    | 7 1 COVID-19 update Daily new confirmed COVID-19 900 cases per 1m people 800 700 Shown is the rolling 7-day average 600 500 Poland Germany 400 United Kingdom France 300 200 Italy 100 Periods in which non-essential stores in 0 shopping malls were closed in Poland Feb Mar May Jul Sep Nov Dec Jan Feb

  8. Slide 8: Key Business developments during Q4 2020

    | 8 1 Key Business developments during Q4 2020 Selection DEX CEX / UX Allegro Pay  Double-digit YoY growth  Launch of Saturday  Topline growth in peak  Scaling up and exceeding in the # of merchants deliveries to lockers period was executed customer onboarding leading to selection  Stable share

  9. Slide 9: Accelerating trends in Active Buyers and GMV per Active Buyer

    | 9 2 Accelerating trends in both Active Buyers (+3.4% QoQ) and GMV per Active Buyer (+9.5% QoQ) with rising traffic and conversion driving up marketplace transactions Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN 2.3% 3.4% 9.5% 2.7% 5.2% 7.4% 1.9% 1.9% 2.2% 10.7% 3.6% 4.5%

  10. Slide 10: GMV up by 58% YoY in Q4 2020

    | 10 2 GMV up by 58% YoY in Q4 2020 with lockdowns reintroduced in November and Smart! outperforming our expectations GMV1 PLN bn 26.0% 25.7% 25.3% 24.8% 35.2% 71.5% 48.7% 57.5% GMV for FY 2020 was PLN 35.1bn up by 54% YoY.  Acceleration since mid-October and into November 10.9 lockdown 9.4  Stron

  11. Slide 11: Revenue growing faster than GMV in Q4 2020

    | 11 2 Revenue growing faster than GMV in Q4 2020, up by 61.2% YoY, and 54.2% for FY 2020 Net revenue Quarterly net revenue structure PLN m PLN m 54.2% 30.1% 32.2% 27.8% 33.4% 36.6% 65.3% 49.7% 61.2% 3,997.8 1,299.0 0.5% 9.1% 4.9% 1,019.0 0.5% 928.7 0.6% 2,592.3 8.0% 4.4% 805.6 0.7% 8.4% 4.0% 751.2

  12. Slide 12: Monetization initiatives drive rise in YoY Take Rate

    | 12 2 Monetization initiatives drive 30 bps rise in YOY Take Rate for Q4. Rising Advertising share of GMV and strong execution in Retail (1P) Net Revenue Bridge Take rate1 PLN m % 62.4% 72.6% 65.7% 32.3% 3.8% 61.2% 46.9 15.4 0.2 1,299.0 9.34 9.31 9.29 9.14 9.32 9.40 9.44 389.4 41.4 8.93 805.7 Q4 Ma

  13. Slide 13: Smart! subscription growth drives net delivery costs funded by Allegro

    | 13 2 Smart! subscription growth drives net delivery costs funded by Allegro Cost of sales as % net revenue 32%  Dynamic growth in Smart! subscribers, orders 27% 8% and free packages mitigated by improving unit 24% 23% 23% 4% economics (average package costs down 2.8% 3% YoY in Q4 and 11.2% in FY

  14. Slide 14: Structure of SG&A similar to pre-lockdown

    | 14 2 Structure of SG&A similar to pre-lockdown SG&A as % net revenue1 33% 29% 30% 3% 29%  Stable marketing spend as % of revenue. H1 20 28% 28% 28% 4% 5% 1% 27% included PLN 82.8m one-off promotional 4% 3% 4% 4% 2% 2% 3% activities (cost of packages for free Smart! stay- 2% 1% 2% 2% 1% at-home) e

  15. Slide 15: Adjusted EBITDA at PLN 533.5m in Q4 2020, up by 38.8% YoY

    | 15 2 Adjusted EBITDA at PLN 533.5m in Q4 2020, up by 38.8% YoY 21.1% 27.8% 19.2% 14.0% 18.4% 36.6% 26.7% 38.8% 30.8% 1,750.0 Adjusted EBITDA1 1,338.1 PLN m 452.4 533.5 331.2 384.3 355.6 408.5 300.2 322.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 2019 2019 2019 2019 2020 2020 2020 2020 % Margin 54.6%

  16. Slide 16: Small remaining costs of Allegro.eu's IPO recognised in Q4

    | 16 2 Small remaining costs of Allegro.eu’s IPO recognised in Q4 Reconciliation of Adjusted EBITDA [PLN m] FY 2019 FY 2020 % Q4 2019 Q4 2020 % 1 2,532 employees received a PLN 10,000 share grant on the first day Adjusted EBITDA 1,338.1 1,750.0 30.8% 384.3 533.5 38.8% of trading (12 Oct) for deliver

  17. Slide 17: Capex to revenue 5.8% for FY 2020

    | 17 2 Capex to revenue 5.8% for FY 2020, +0.2pp vs 2019 on accelerated IT investments Capital expenditures1 by type 61.2% PLN m 230.5  In Q4 2020 capital expenditure represented 81.2 5.0% of net revenue. YoY increase mainly in 143.0 capitalized development costs 48.6  FY 2020 capital expenditure

  18. Slide 18: Organic deleveraging of 0.4x in Q4 to end FY 2020 at 2.5x

    | 18 2 Organic deleveraging of 0.4x in Q4 20 to end FY 2020 at 2.5x [PLN m] Sep-20 Sep-20 Proforma Dec-20  Primary proceeds from the IPO was a net 972.3 PLN m, that reduced Adjusted EBITDA LTM 1,600.8 1,600.8 1,750.0 leverage from 3.4x reported as of Borrowings at amortized cost 6,163.1 5,437.4 5,4

  19. Slide 19: Multiple avenues for future growth of our platform

    | 19 3 Multiple avenues for future growth of our platform International Adjacent expansion B2B verticals Consumer International fintech Advertising sellers Smart! inbound DEX Retail Benefit from Basics underlying market growth “Incubate and maximise future levers” “Accelerate the flywheel” While con

  20. Slide 20: Addressing key growth drivers

    | 20 3 Addressing key growth drivers Selection Smart! Advertising Allegro Pay  Scaling up merchants  Improved features and  Development of current  Ready for scaling up acquisition value added services to strong products  Productization of offers drive acquisition and  New revenue streams: cus

  21. Slide 21: Stepping up investments in Delivery Experience

    | 21 3 Stepping up investments in Delivery Experience to increase the share of next-day and further drive the marketplace flywheel Allegro Fulfillment roll-out Driving higher GMV and Revenue  Starting merchant recruitment in Q1/Q2 for Allegro Fulfillment to  More same-day and next-day delivery opt

  22. Slide 22: In 2021 Allegro Pay will provide "1 click" shopping experience

    | 22 3 In 2021 Allegro Pay will provide “1 click” shopping experience for most Allegro active buyers Mass scale Seamless activation Effortless purchase Who can become Allegro How long does it take to What is the effort to buy Pay user? activate Allegro Pay? using Allegro Pay? 2020 2021 At least Most

  23. Slide 23: Investing in functionality development and Delivery Experience

    | 23 3 Investing in functionality development and Delivery Experience Capital expenditures1 by type  Accelerated investment in functionality development in PLN m 2021 to support growth rate on larger post-COVID business 850-950  2021 increase in Other capex items for IT equipment & software, new o

  24. Slide 24: Strong 2020 results across key financial KPIs

    | 24 4 Strong 2020 results across key financial KPIs 2019 H1 2020 FY 2020 FY 2020 FY 2020 Actual Actual Prospectus After 9M 2020 Actual GMV 25% 54% Mid 40s% Low 50s% 54% YoY growth YoY growth YoY growth YoY growth YoY growth Revenue 31% 52% Broadly in-line Unchanged 54% YoY growth YoY growth with H1

  25. Slide 25: Expectations for 2021 and beyond: accelerating investments in medium-term growth

    | 25 4 Expectations for 2021 and beyond: accelerating investments in medium-term growth FY 2021 Medium Term 2019 2020 Actual Actual Prospectus Update Prospectus Update GMV 25% 54% High 20s% / Low-to-mid 30s% Low-to-mid 20s% Mid 20s% YoY growth YoY growth Low 30s% 2019-21 CAGR Growth Growth 2019-21 C

  26. Slide 26: Questions & Answers

    | 26 5 Questions & Answers

  27. Slide 27: Thank you

    | 27 Thank you

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