Allegro.eu S.a. · GPW:ALE
Allegro.eu — Q3 2022 Earnings Presentation
25 slides from Allegro.eu's earnings presentation, Nov 30, 2022
Slide 1: Allegro.eu Q3 2022 Results presentation
Allegro.eu Q3 2022 Results presentation 30 November 2022 | 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 2022 expectations Agenda Q&A | 3
Slide 4: Highlights
Highlights | 4
Slide 5: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Polish GMV accelerates to 21% YoY with EBITDA rising 25% despite deteriorating market conditions GMV and revenue YoY growth accelerates in Q3’22 vs Q2’22 Consolidated GMV: 30.4% YoY (+21.4% YoY ex. Mall) across all the major categories showing resilience of Allegro’s eve
Slide 6: Focus on Management's Seven Priorities
Focus on Management’s Seven Priorities Poland CE-51 Growth 1 Strong in Poland 2 Win in Czechia / Slovakia with our marketplace model 3 Scale up Allegro Pay Capture scale Improve Smart!effects and delivery and improve 4 economics productivity of Smart! and DEX2 5 Mall 1P business turnaround Costs 6 F
Slide 7: Growth Priority 1: Strong in Poland
Growth Priority 1: Strong in Poland Priority 1 Retail basics Advertising Selection growth Price competitiveness Improving convenience • >260m active offers • Seen by customers as Price • Buyers’ protection extended to • Advertising revenues up +30.5% • Findability improvements Leader across categori
Slide 8: Growth priorities 2 and 3: 3P platform and Allegro Pay
Growth priorities 2 and 3: 3P platform development on track to launch in Czechia in 2023, whilst Allegro Pay continues to scale up Priority 2 Priority 3 3P launch in CE-5 Allegro Pay • Friends & Family testing of the • PLN 1.41bn loans originated Allegro Czech platform: language, (156% YoY) producti
Slide 9: Cost Priorities 4, 5 and 6: 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 +2pp Q3’21 Q3’22 % of parcels delivered next day • August co-financing move shares • Further improvement in next day • Significant progre
Slide 10: Financial results
Financial results | 10
Slide 11: Q3 2022 key results: Polish operations
Polish operations (ex. Mall) Q3 2022 key results: Polish operations GMV Active Buyers1 GMV per Active Buyer2 Take Rate3 PLN 12,012m Q3’22 13.8m Q3’22 PLN 3,449 Q3’22 11.05% Q3’22 +21.4% YoY +3.0% YoY +13.3% YoY +0.76pp YoY PLN 34,946m 9M’22 10.78% 9M’22 +16.7% YoY +0.39pp YoY Revenue Adjusted EBITDA
Slide 12: Added 226k Active Buyers in Q3
Polish operations (ex. Mall) Added 226k Active Buyers in Q3 with growth in average spend reflecting both transactions and inflation as secular shift to online continues Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN m 3.0% 13.3% 0.7% -0.5% 1.2% 1.7% 2.6% 2.9% 3.8% 3.4% 13.4 1
Slide 13: GMV growth in Poland accelerating in Q3 to 21.4% YoY
Polish operations (ex. Mall) GMV growth in Poland accelerating in Q3 to 21.4% YoY GMV1 PLN bn 19.9% 16.7% 12.8% 16.0% 21.4% • LTM2 GMV up by 16.7%, reaching PLN 47.6bn, proving resilience of Allegro everyday shopping selection at attractive prices • GMV growth driven by increase in both ASP3 and 12.
Slide 14: Revenue growth driven by marketplace, advertising and retail
Polish operations (ex. Mall) Revenue growth driven by marketplace, advertising and retail Revenue Bridge Take Rate1 PLN m % 30.0% 30.5% 20.8% 60.5% 80.4% 31.9% • Take Rate up by 0.76pp YoY benefiting fully from monetization initiatives introduced in Q1 and partially from intra-quarter changes in Q3
Slide 15: Adjusted EBITDA grew by 24.6% YoY in Q3
Polish operations (ex. Mall) Adjusted EBITDA grew by 24.6% YoY in Q3 Adjusted EBITDA bridge in Q3 20221 • GMV acceleration combined with higher PLN m Take Rate driving marketplace revenue acceleration, with ca. a third of the YoY improvement driven by co-financing 4.77% 4.89% • Growing contribution
Slide 16: Capital investment slows in Q3 to 10.0% of revenue
Polish operations (ex. Mall) Capital investment slows in Q3 to 10.0% of revenue vs 11.5% in 9M 2022 Capital expenditures1 by type 107.8% PLN m 533.2 • Capitalized development capex stabilizing along with headcount 302.3 • New office peak investments completed in Q2 58.3% 256.7 • Most lockers for 202
Slide 17: Q3 2022 key results: Mall segment
Mall segment Q3 2022 key results: Mall segment GMV Active Buyers2 GMV per Active Buyer4 Take Rate5 PLN 895m Q3’22 4.3m Q3’22 pro-forma1 PLN 939 pro-forma1 11.89% Q3’22 +6.5% YoY pro-forma1 -4.0% YoY pro-forma1 -1.4% YoY pro-forma1 N/A7 PLN 2,487m 9M’22 pro-forma1 -6.8% YoY pro-forma1 Revenue Adjuste
Slide 18: Mall 1P business turnaround in progress
Mall segment Mall 1P business turnaround in progress Income Statement • First signs of improvement, with Mall segment GMV up by 6.5% YoY Mall segment Q3 2021 in Q3 (vs -6.0% in Q2’22), and Adj. EBITDA loss down to -PLN 50m PLN m (unaudited)1 pro-forma Q3 2022 (vs -PLN 67m in Q2’22) GMV 839.9 894.9 •
Slide 19: Q3 2022 key results: consolidated Group
Group Consolidated Q3 2022 key results: consolidated Group GMV Adjusted EBITDA Take rate Non-cash impairment PLN 12,907m Q3’22 PLN 537m Q3’22 11.06% Q3’22 adjustment to +30.4% YoY +13.9% YoY +0.77pp goodwill from PLN 36,629m 9M’22 PLN 1,484m 9M’22 10.79% 9M’22 Mall segment +22.4% YoY -5.3% YoY +0.40
Slide 20: EBITDA starting to bring down leverage during Q3
Group Consolidated Strong growth in Polish operations EBITDA starting to bring down leverage during Q3 Pro-forma1 • Strong growth in Polish operations EBITDA PLN m (unaudited) 1-Apr-22 30.06.2022 30.09.2022 starting to bring the group leverage down to LTM2 Adjusted EBITDA Polish operations 1,995.8 1
Slide 21: Net profit
Group Consolidated Net profit PLN m 9M 2022 9M 2021 Change % Q3 2022 Q3 2021 Change % 1• PLN 2.3bn of non-cash impairment charges made against Mall segment EBITDA: Group 1,372.5 1,532.1 (10.4%) 491.0 457.1 7.4% goodwill as at the end of Q3’22 Amortisation (464.7) (320.8) 44.8% (164.8) (110.7) 48.9%
Slide 22: 2022 expectations
2022 expectations | 22
Slide 23: 2022 expectations
2022 expectations 2022 expectations 2022 expectations3 2022 expectations Polish operations Mall segment Group consolidated Allegro-only Mall-only3 Consolidated 2022E Published Sep 29th Update Published Sep 29th Update Published Sep 29th Update GMV 15-17% Unchanged Low single-digit % Unchanged 22-24%
Slide 24: Q&A
Q&A | 24
Slide 25: Thank you
Thank you | 25