Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q1 2022 Earnings Presentation
21 slides from Allegro.eu's earnings presentation, May 26, 2022
Slide 1: Allegro.eu Q1 2022 Results presentation
| 1 Allegro.eu Q1 2022 Results presentation 26 May 2022
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
Slide 3: Agenda
| 3 Agenda 1 2 Highlights Financial results 3 4 MALL Group 2022 acquisition expectations 5 Q&A
Slide 4: Q1 2022 Highlights
| 4 1 Q1 2022 Highlights Allegro makes solid start in Q1 against most challenging comps of 2022 Q1’22 GMV and revenue growth broadly as expected despite tough GMV: +12.8% YoY (vs 46.1% in Q1’21) comparison with Q1’21 (January and March lockdowns) with demand Revenue: +15.1% YoY resilient despite the
Slide 5: Q1 2022 key results
| 5 1 Q1 2022 key results GMV Active Buyers1 GMV per Active Take Rate3 Buyer2 PLN 10,824m Q1’22 13.4m Q1’22 PLN 3,265 Q1’22 10.46% Q1’22 +12.8% YoY +0.6% YoY +14.2% YoY +0.02pp YoY Revenue Adjusted EBITDA Adjusted EBITDA / Cash Conversion4 GMV margin PLN 1,393m Q1’22 PLN 463m Q1’22 4.28% Q1’22 65.2%
Slide 6: Retail basics and delivery experience improvements continuously driving the flywheel
| 6 1 Retail basics and delivery experience improvements continuously driving the flywheel Selection growth Price competitiveness Improving convenience Delivery speed progress +8pp Q1’21 Q1’22 % of parcels delivered next day • Continued double-digit YoY growth in • Price Insights, a more efficient p
Slide 7: Continued progress in key growth initiatives
| 7 1 Continued progress in key growth initiatives Smart! Advertising Allegro Pay Organic international development • Adjusted Smart! for Start1 trial • Advertising revenues up by +21% YoY, • Excellent performance of Allegro Pay • Launch of Allegro.com – international duration from 12 to 3 months to
Slide 8: Consistent progress on ESG initiatives in Q1'22
| 8 1 Consistent progress on ESG initiatives in Q1’22 Snapshot of key Q1 2022 ESG actions • ESG Report: published the 2022 ESG Report compliant with international reporting standards 1 • Solidarity with Ukraine: o Support for Ukrainian employees o Over PLN 10m collected so far on a dedicated donatio
Slide 9: Our Active Buyers are increasingly loyal and engaged
| 9 2 Our Active Buyers are increasingly loyal and engaged. Growing annual spend per Buyer and rising Smart! penetration as shift to online continues Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN 14.2% 0.6% -0.3% 0.7% 0.7% -0.5% 3.8% 3.4% 2.9% 3.4% 13.3 13.3 13.4 13.5 13.4 3
Slide 10: Q1 GMV up by 12.8% YoY despite COVID-19 headwinds
| 10 2 Q1 GMV up by 12.8% YoY despite COVID-19 headwinds and consumer spending impact in the first week following the invasion of Ukraine GMV1 PLN bn 46.1% 10.6% 19.9% 16.7% 12.8% • LTM GMV up by 14.9% YoY, reaching PLN 43.8bn • QoQ deceleration in growth rate in line with expectations driven by the
Slide 11: Revenue growth driven by marketplace, advertising and retail
| 11 2 Revenue growth driven by marketplace, advertising and retail Revenue Bridge Take Rate1 PLN m % 12.8% 21.1% -5.6% 40.1% 241.9% 15.1% • Take rate broadly flat YoY in Q1 • QoQ increase driven by seasonality 127.6 21.4 23.7 12.6 1 392.6 1 210.2 -2.8 10.43 10.46 10.29 9.84 10.46 Q1 Market- Adverti
Slide 12: In-line Adjusted EBITDA performance in Q1
| 12 2 In-line Adjusted EBITDA performance in Q1 Adjusted EBITDA bridge in Q1 2022 5.58% 4.28% • Q1 monetization initiatives lifted Take Rate for only part of quarter: revised 44.3% 33.2% co-financing from February and 127.6 18.9 success fee change from March 9.1 • Margin-accretive growth of adverti
Slide 13: Investing in platform improvements and One by Allegro to drive future growth
| 13 2 Investing in platform improvements and One by Allegro to drive future growth and optimize costs Capital expenditures1 by type PLN m 168.6% • Expanding project portfolio and larger tech team 161.1 drive higher capitalised development costs in Q1. Approximately half of the YoY increase was driv
Slide 14: Leverage: Expected peak in pro-forma leverage after MALL Group acquisition at 3.26x
| 14 2 Leverage: Expected peak in pro-forma leverage after MALL Group acquisition at 3.26x [PLN m] Dec-21 Mar-22 Pro-forma 1 Apr-22 • MALL closing in April reflected in pro-forma leverage of 3.26x Adjusted EBITDA LTM 2,068.5 1,995.8 1,995.8 • Quarter-end cash position reflects Borrowings at amortise
Slide 15: Acquisition of MALL Group accelerating the international growth
| 15 3 Acquisition of MALL Group accelerating the international growth Adding Preparation of our International growth of international international platform sellers (allegro.com launched Q1‘22) the Allegro marketplace 1 April 2022 Q2-Q3 2022 2023-2024 Closing 1st 100 days Allegro marketplace deploy
Slide 16: From 2023 we plan to integrate MALL Group with Allegro
| 16 3 From 2023 we plan to integrate MALL Group with Allegro and deploy our international platform April 2022 2023 2024+ Closing date Launch in Czechia Integrated CEE marketplace & Slovakia in all MALL countries The transaction gave us an important head-start • Combined addressable market of 18m ac
Slide 17: In FYE Mar-22 MALL Group recorded a 6% YoY GMV drop
| 17 3 In FYE Mar-22 MALL Group recorded a 6% YoY GMV drop, however with the 3P business growing by 44% [PLNm]1 FYE Mar-22 • MALL Group's overall GMV decline of ~6% driven largely GMV 3,989 by comping vs severe offline lockdown in Czechia from Q4 2020 to early May 2021 GMV growth (6%) 1P GMV 3,510 •
Slide 18: Quick wins to accelerate our new business through Allegro Retail Basics
| 18 3 We have already started to implement a list of quick wins to accelerate our new business through application of proven Allegro Retail Basics SELECTED EXAMPLES Selection Price Convenience • Onboard selected top-selling • Adjust tools and deploy a new pricing • Asset-light pick-up points networ
Slide 19: 2022 expectations
| 19 4 2022 expectations Allegro excluding FY 2021A FY 2022E FY 2022E Expectations for the MALL Group and WE|DO Actual Published on 24 Feb 2022 Update: excluding Mall MALL Group and WE|DO for 9 months GMV 21% High teens-Low 20s% 15-20% to December 2022: YoY growth YoY growth YoY growth • Targeting n
Slide 20: Questions & Answers
| 20 5 Questions & Answers
Slide 21: Thank you
| 21 Thank you