Allegro.eu S.a. · GPW:ALE

Allegro.eu — Q3 2020 Earnings Presentation

20 slides from Allegro.eu's earnings presentation, Nov 26, 2020

  1. Slide 1: Allegro.eu Q3 2020 Results presentation

    | 1 Allegro.eu Q3 2020 Results presentation 26 November 2020

  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 Agenda 3 4 Summary Q&A

  4. Slide 4: Q3 2020 and 9M 2020 YTD highlights

    | 4 1 Q3 2020 and 9M 2020 YTD highlights Continued progress driving inputs as the team remains in home working mode GMV continues to grow at 8,253.1 mPLN, +49% YoY for Q3 and 24,259.7 mPLN, +52% YoY% for 9M YTD Revenue for Q3 was 928.7 mPLN, +50% YoY and reached 2,698.8 mPLN, +51% YoY% for 9M YTD Ad

  5. Slide 5: Q3 2020 and 9M 2020 key results

    | 5 1 Q3 2020 and 9M 2020 key results GMV Active Buyers GMV per Active Buyer Take Rate 8,253 mPLN Q3’20 12.6 m PLN 2,464 9.40% Q3’20 +49% YoY +12.9% YoY +28.6% YoY +0.10pp YoY 24,260 mPLN 9M’20 9.19% 9M’20 +52% YoY -0.12pp YoY Revenue Adjusted EBITDA Adjusted EBITDA margin Cash Conversion1 929 mPLN

  6. Slide 6: COVID-19 update

    | 6 1 COVID-19 update Daily new confirmed COVID-19 cases per 1m people  Poland experiencing a stronger COVID-19 wave Shown is the rolling 7-day average than in Q2  Non-essential stores in shopping malls and 1,100 retail parks are closed from 7 Nov to 27 Nov 1,000  Allegro continues to support soc

  7. Slide 7: Key Business developments during Q3 2020

    | 7 2 Key Business developments during Q3 2020 Smart! DEX Selection & Price Allegro Pay  Transitioned from free  Signed 7 year long-term  We released an improved  Allegro Pay pilot phase Smart! Back to paid supply and cooperation onboarding process for scaling up by adding subscription after agr

  8. Slide 8: In Q3 2020 Allegro added 0.3m Active Buyers as GMV per Active Buyer climbs

    | 8 2 In Q3 2020 Allegro added 0.3m Active Buyers as GMV per Active Buyer continues to climb strongly, up 7.4% in the quarter Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN 5.2% 2.3% 7.4% 1.9% 2.2% 2.7% 10.7% 1.9% 4.5% 3.2% 3.6% 12.9% 3.7% 12.3 12.6 28.6% 2,464 11.4 11.7 2,29

  9. Slide 9: GMV in Q3 2020 up by 48.7% YoY as incremental Buyer Engagement mostly sustained

    | 9 2 GMV in Q3 2020 up by 48.7% YoY as incremental Buyer Engagement mostly sustained post lockdown GMV1 bnPLN 26.0% 25.7% 25.3% 24.8% 35.2% 71.5% 48.7% GMV for 9M YTD was 24.3 bnPLN up by 52.5% YoY. 9.4 GMV LTM has moved on to 31.1 bnPLN at the end of Q3, 8.3 up by 9.5% QoQ and 45.3% YoY. 6.9 6.6 A

  10. Slide 10: Q3 2020 Revenue up 49.7% and 51.0% for 9M YTD

    | 10 2 Q3 2020 Revenue up 49.7% and 51.0% for 9M YTD Net revenue Net revenue structure mPLN mPLN 51.0% 30.1% 32.2% 27.8% 33.4% 36.6% 65.3% 49.7% 2,698.8 1,019.0 0.5% 928.7 0.6% 8.0% 4.4% 805.6 0.7% 8.4% 4.0% 751.2 0.8% 1,786.7 5.9% 8.9% 616.5 0.9% 620.2 0.9% 8.0% 5.9% 49.7% 550.0 1.3% 7.7% 4.8% 7.8%

  11. Slide 11: GMV and advertising drive revenue growth as take rate stabilizes

    | 11 2 GMV and advertising drive revenue growth as take rate stabilizes Net Revenue Bridge Take rate1 mPLN % 50.2% 69.9% 62.7% 17.6% 3.3% 49.7% 9.3 9.3 9.3 9.1 9.3 9.4 8.9 30.2 5.6 0.2 928.7 257.9 14.6 620.2 Q3 Market- Retail Advertising Price Other Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 place compa- revenue

  12. Slide 12: Smart! subscription growth drives net delivery costs funded by Allegro

    | 12 2 Smart! subscription growth drives net delivery costs funded by Allegro Cost of sales as % net revenue 27% 24% 4% 23% 23% 4% 4%  Net costs of delivery increase as conversion of 19% 8% 5% 18% Smart! stay-at-home users to paying Smart! 17% 4% 4% 5% 4% subscribers fuels Smart! growth 2% 5% 4% 

  13. Slide 13: Structure of SG&A similar to pre-lockdown

    | 13 2 Structure of SG&A similar to pre-lockdown SG&A as % net revenue1 33% 30% 3% 29% 29% 28% 28% 28% 1% 5% 4% 3% 4% 4% 5%  Q3 Marketing spend as a share of revenue fell by 2% 1% 2% 2% 2% 2% 4pp as Q2 included ~81.2 mPLN one-off 17% promotional activities (free Smart! stay-at-home) 10% 11% 12% 12%

  14. Slide 14: Adjusted EBITDA at 408.5 mPLN in Q3 2020, up by 26.7% YoY

    | 14 2 Adjusted EBITDA at 408.5 mPLN in Q3 2020, up by 26.7% YoY 21.1% 27.8% 19.2% 14.0% 18.4% 36.6% 26.7% 27.5% 1,216.5 Adjusted EBITDA1 953.8 mPLN 452.4 408.5 331.2 384.3 355.6 300.2 322.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 YTD YTD 2019 2019 2019 2019 2020 2020 2020 2019 2020 % Margin 54.6% 53.7% 52.0% 47.7% 47

  15. Slide 15: Almost all costs of Allegro.eu's IPO and refinancing recognised in Q3

    | 15 2 Almost all costs of Allegro.eu’s IPO and refinancing recognised in Q3 Reconciliation of Adjusted EBITDA [PLN m] Q3 2020 Q3 2019 % 1 Legal and advisory fees related to the IPO were Adjusted EBITDA 408.5 322.4 26.7% accrued in Q3 Transaction costs (0.4) – – 2 Shared based compensation costs (IF

  16. Slide 16: Capex to revenue 6.1% for 9M YTD, ahead of Allegro Fulfillment investments

    | 16 2 Capex to revenue 6.1% for 9M YTD, +0.3pp vs 2019 ahead of Allegro Fulfillment investments 59.3% 165.9 Capital expenditures1  In Q3 2020 capital expenditure represented 59.8 5.0% of net revenue. YoY increase mainly in by type 104.1 capitalized development costs mPLN 34.5  YTD 2020 capital ex

  17. Slide 17: Greater financial flexibility post IPO with proforma leverage down to 2.9x

    | 17 2 Greater financial flexibility post IPO with proforma leverage down to 2.9x [PLN m] Jun-20 Sep-20 Sep-20 Proforma  Primary proceeds from the IPO was a Adjusted EBITDA LTM 1,514.7 1,600.8 1,600.8 net 972.3 mPLN Borrowings at amortized cost 6,169.5 6,163.1 5,437.4  The Group refinanced on 14 O

  18. Slide 18: Targets and expectations: 2020 GMV and Adjusted EBITDA moving up

    | 18 2 Targets and expectations: 2020 GMV and Adjusted EBITDA moving up FY 2020 YTD 2020 FY 2020 2019 H1 2020 Prospectus After 9M update Comments GMV 25% 54% Mid 40s% 52% Low 50s%  Stronger sustained demand YoY growth YoY growth YoY growth YoY growth YoY growth  Return of lockdown measures Revenue

  19. Slide 19: Summary

    | 19 3 Summary Staying focused on retail basics, driving inputs and scaling the organization Challenging home working environment continues as Poland fights with strong COVID-19 second wave Smart! growing rapidly, take-rates stabilized, Allegro Pay trials ongoing and fulfillment project gaining trac

  20. Slide 20: Questions & Answers

    | 20 4 Questions & Answers

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