Mercadolibre, Inc. · NASDAQ:MELI
Mercadolibre — J.P. Morgan Global Emerging Markets Corporate Conference 2024
35 slides from Mercadolibre's conference presentation, February 2024
Slide 1: Mercado Libre
Mercado Libre MERCADO LIBRE J.P. Morgan Global Emerging Markets Corporate Conference Miami, Florida, February 2024 1
Slide 2: Agenda
Agenda Overview of Mercado Libre Our Impact Financial Highlights MERCADO LIBRE 2
Slide 3: Overview of Mercado Libre
Overview of Mercado Libre LIVRE MERCADO LIBRE 3
Slide 4: Key Messages
﹥ Founded in 1999, Mercado Libre’s purpose is to expand access to commerce and financial services to transform the lives of millions of Key Messages people in Latin America MELI 2023 ﹥ E-Commerce leaders, consistently outgrowing key markets. Fintech challengers and disruptors: one of the top acquirer
Slide 5: Tech Leader in Latin America
Tech Leader in Latin America Our purpose is to expand access to commerce and financial services to transform the lives of millions of people in Latin America.
Slide 6: One of the Largest in Latin America
If Mercado Libre were a country, it would be One of the Largest in Latin America BRA 214 M MEX 126 M 85 M Unique buyers 69 M Unique fintech active users COL 51 M ARG ARG 45 M Source: Latinometrics (2023) Back to Key Messages
Slide 7: MELI's Story
MELI’s Story 2020 2022 Inauguration of our IT Mercado Libre Center in Bogotá. reaches the 2005 milestone of We acquire 2012 $100bn in DeRemate.com 2010 Opening of our payments, 2000 2003 operations 2015 $10bn in We introduce platform to the Expanded to We introduce developer Launched revenue and Ecu
Slide 8: Leadership in Commerce is a competitive advantage as we disrupt Financial Services
Leadership in Commerce is a competitive advantage as we disrupt Financial Services Market leader in Commerce 5.8x 3.9x We have consistently outgrown our main markets Challenger & Disruptor in Fintech We are one of the largest Fintech MERCADO LIBRE acquirers in the region 8 “Market leader in Commerce
Slide 9: Our Ecosystem
Our Ecosystem Marketplace Digital Account Advertising Acquiring Retail Leader in e-commerce and fintech in Investments Latin America Credits Logistics Insurance Classifieds MERCADO LIBRE Benefits 9
Slide 10: Our 2023 Operational and Financial Highlights
Our 2023 Operational and Financial Highlights US$44.7BN US$14.5BN US$1.8BN US$987MM 1 +58% FXN YoY +68% FXN YoY 12.6% margin +6.8% margin GMV NET REVENUES INCOME FROM OPERATIONS NET INCOME 1.4BN US$182.8BN US$135.6BN US$3.8BN +22% YoY +120% FXN YoY +147% FXN YoY +33% YoY MERCADO LIBRE ITEMS SOLD TPV
Slide 11: Workforce
Workforce OUR TEAM We rely on the leaders of MELI and on our employer brand to 58,313 find, choose and recruit the best talent. In a new year of growth, in which we welcomed 40,548 over 17,500 people in the region, we rely on our culture 29,957 and the experience working at Mercado Libre to form and
Slide 12: Workforce
Workforce Market vs Average 44% 38% WOMEN All Meli Equity 33% 23% Women LEADERS 48% 40% ETHNICITIES Brazil Inclusion 12% 5% Ethnicities LEADERSHIP MERCADO LIBRE Diversity 12% 11% Of our team is part of the LGBTQIAP+ COMMUNITY 12 Back to Key Messages
Slide 13: Commerce
Commerce The widest assortment with the fastest shipping accessible to millions of consumers and sellers MERCADO LIBRE 13
Slide 14: e-Commerce
e-Commerce Opportunity to drive Market share Penetration Offline to Online opportunity opportunity Multi-category marketplace with millions of sellers that offer competitive prices Complementary assortment 8 out of 10 searches done in specific categories that inside ecommerce in the require scale for re
Slide 15: $45bn GMV
$45bn GMV #1 player in all main geographies Unique Buyers Items Sold (Millions) (Millions) Back to Key Messages
Slide 16: 1.4bn Shipped items
1.4bn Shipped items Packing & shipping Technology Packing Materials 100% recyclable, Proprietary technology to drive reusable or compostable & speed & efficiency Reverse logistics program: recovery of Thousands of engineers dedicated to 97% of returned products. MercadoLibre logistics organisation A n
Slide 17: Logistic Network
Logistic Network Items Shipped (# Millions) 49% shipped through fulfillment 36% shipped through cross docking MERCADO LIBRE 17 Back to Key Messages
Slide 18: Fin
Fin Leading innovations for the future of financial services MERCADO LIBRE 18
Slide 19: Fintech
Fintech Online and Offline Credit Payments processing Digital Account Unique first-party data provides Technology developed for deep insights that drive our Commerce is being leveraged to Enabling day-to-day financial underwriting models serve off-platform merchants services, aiming for principality amon
Slide 20: $183bn TPV
$183bn TPV One of the region’s leading Fintechs Total Payment Volume Total Payment Number Unique Fintech Active Users (in billion) (in million) (in million) 73,1% 120% Back to Key Messages
Slide 21: The Mercado Pago Account
The Mercado Pago Account Credit card Debit card Money income Online payments Money flow Asset Management Offline payments Available in: Credits
Slide 22: Credit Highlights
Credit Highlights Consolidated profitability expansion with largely stable credit portfolio Credit Portfolio by Product Net interest Margin After Losses2 Credit Features (US$ million) (% of avg portfolio) (in US$ million; months) Exposure per Duration User³ (months) In-store Merchant 288 3.0 Online M
Slide 23: Our Impact
Our Impact LIVRE MERCADO LIBRE In Latin America 23
Slide 24: We propel progress in Latin America through commerce and financial services
We propel progress in Latin America through commerce and financial services, enabling sustainable growth, shared and with a positive impact. MERCADO LIBRE 24
Slide 25: MERCADO LIBRE
+4.6 +10 +11 JAN 2024 MILLIONS MILLIONS MILLIONS Packages delivered Restored native Products with a using sustainable trees positive impact sold transportation models +5.2 +1.8 MILLIONS MILLION MERCADO LIBRE Credits to small Families in the region for entrepreneurs whom MercadoLibre is their main so
Slide 26: Financial Highlights
2023 Financial Highlights LIVRE MERCADO LIBRE 26
Slide 27: Growth & Profitability
Growth & Profitability Net Revenues Income from Operations and Margin Net Income / (Loss) and Margin (US$ billion, %) (US$ million, % of Net Revenues) (US$ million, %) 37% 49% 78% 73% 59% > Net revenue up almost $4 billion year-on-year, growing at > EBITDA Margin reached 16,2%, a gain of 2,6pp over l
Slide 28: Cash, Liquidity & Leverage
Cash, Liquidity & Leverage Available Cash & Liquidity Cash Flow from Operations Total Debt & Leverage (US$M, % of Net Revenues) (US$ M) (US$M, %) Capital Raise 1.9M Follow-on 1.5M Convertible 0.9M Convertible -0.4M Unsecured Bond 1.1M > Available cash grew +500 millions 2023 over year end > Cash fro
Slide 29: Debt Profile
Debt Profile Debt breakdown by currency, type and country Debt Instruments & Leasings Debt Instruments by Country (excl. Leasings) (US$ billion, Q4’23) (US$ billion, Q4’23) 5.3B 4.5B (1) Brazil Real-Estate Securities (2) For SEC reporting purposes, we consolidate 100% of the debt into securitization
Slide 30: Meli Inc. Public Debt Instruments
Meli Inc. Public Debt Instruments Maturity Profile (US$ Million) > Convertible Note (2028) 700 - In 2023, we announced the redemption of 100% of our 2028 notes by converting 400 440 them into approximately 1 million shares d of common stock, which had been held e me as treasury stock de 23 Re n 20 i
Slide 31: Non-Investment Grade
Long Term Credit Rating MELI current rating and Sovereign comparison Moody’s Fitch S&P AAA AAA AAA Aa1 AA+ AA+ Aa2 AA AA Investment Grade Aa3 AA- AA- A1 A+ A+ A2 A A A3 A- A- Baa1 BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB- Ba1 BB+ BB+ Ba2 BB BB Non-Investment Grade Ba3 BB- BB- B3 B+ B+ B2 B B B1 B- B- Ca
Slide 32: Latin America GDP Growth projections
Latin America GDP Growth projections GDP growth projections, compared with US Back to Key Messages Source: Bloomberg Composite
Slide 33: Q4'23 Financial Highlights
Q4’23 Financial Highlights LIVRE MERCADO LIBRE 33
Slide 34: Q4'2023 Operational and Financial Highlights
Q4’2023 Operational and Financial Highlights Fourth Quarter 2023 US$13.5BN US$4.3BN US$240MM US$165MM 1 +79% FXN YoY +83% FXN YoY 5.6% margin +3.9% margin GMV NET REVENUES INCOME FROM OPERATIONS2 NET INCOME 413.1MM US$56.5BN US$42.3BN US$3.8BN +29% YoY +153% FXN YoY +182% FXN YoY +33% YoY MERCADO LI
Slide 35: Q4'2023 Financial Highlights
Q4’2023 Financial Highlights Revenue growth remains strong overall and across geographic segments Net Revenues Income from Operations1 and Margin Net Income / (Loss) 1 and Margin (US$ million, %) (US$ million, % of Net Revenues) (US$ million, %) 37% 10.7% 13.4% Adjusting for one-off > MELI added more
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