Allegro.eu S.a. · GPW:ALE

Allegro.eu — Q1 2024 Earnings Presentation

32 slides from Allegro.eu's earnings presentation, May 23, 2024

  1. Slide 1: Allegro.eu Q1 2024 results presentation

    Allegro.eu Q1 2024 results presentation 23 MAY 2024 1

  2. 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 o

  3. Slide 3: Agenda

    Agenda // Highlights Financial results: Polish Operations International Operations Group Management outlook Q&A | 33

  4. Slide 4: Highlights

    Highlights 4

  5. Slide 5: Four fundamental capabilities to deliver long-term value growth

    The view from the CEO’s desk: Four fundamental capabilities to deliver long-term value growth 01 02 03 04 Tech Customer Investing Operational innovation Loyalty for returns Excellence These skills underlie all our work on our mid-term priorities 5

  6. Slide 6: Accelerating GMV growth and expanding margins lifted Q1 Polish Adjusted EBITDA by 37% YoY

    Accelerating GMV growth and expanding margins lifted Q1 Polish Adjusted EBITDA by 37% YoY Q1 2024 Top Line Highlights1 ● Polish GMV growth improved 1.5pp QoQ to 10% YoY for Active Buyers GMV per Active Buyer Q1, outpacing 5.6%3 nominal retail growth Group 19.9m Group PLN 3.0k Poland 14.8m +4.0% Pola

  7. Slide 7: Improved Adjusted EBITDA and lowered capex reduced leverage to 1.4x

    Improved Adjusted EBITDA, completed merchant fee netting and lowered capex reduced leverage to 1.4x for Q1 Q1 2024 Profitability, Cash-flow and Leverage Highlights1 ● Further excellent progress on Polish Adj. EBITDA / GMV Adjusted EBITDA margin at 6.04% driven by: Group +33.0% ○ Main Take Rate changes

  8. Slide 8: New multi-year priority framework

    New for 2024: Management has moved to a new multi-year priority framework Medium-term business objectives Grow Core Build New Expand Ensure Solid Marketplace Engines Internationally Fundamentals 1. Easy and safe to shop, 3. Strong advertising 6. Systematic introduction 8. Groupwide system simple to

  9. Slide 9: Continuous enhancement of the marketplace proposition for buyers and merchants

    Polish Operations Continuous enhancement of the marketplace proposition for buyers and merchants Grow core marketplace in Poland ● ~130k Active Buyers added in Poland in Q1 ● Supermarket and Health & Beauty categories ● B2B buyers up by 20% YoY thanks to outpaced average GMV growth by 1.5-2.0x Buyer

  10. Slide 10: Accelerating business performance by investing in new engines

    Group Accelerating business performance by investing in new engines Strong Advertising Seamless fintech solutions Low cost and reliable delivery ● Robust pricing holding up on Allegro Ads ● Launched Allegro Cash pilot, bank account ● New co-financing structure implemented as of ● ML1-enabled product i

  11. Slide 11: Marketplace launch in Slovakia four times faster at one fifth the cost

    International Operations Marketplace launch in Slovakia four times faster (3 vs 12 weeks) at one fifth the cost (PLN 6m vs PLN 35m1) than in Czechia Systematic introduction of our asset-light marketplace Allegro.sk launched with mass media campaign International marketplaces network development: in M

  12. Slide 12: Operating excellence and capabilities

    Group Operating excellence and capabilities Complete Mall Segment turnaround Ensure solid fundamentals 3.5k machines installed ● Q1 saw Management changes and a revised turnaround plan accepted Groupwide system architecture & software development processes ● Accelerating work on shrinking selection

  13. Slide 13: Financial results

    Financial results 13

  14. Slide 14: Q1 2024 key results: Polish Operations

    Polish Operations Q1 2024 key results: Polish Operations1 GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q1 2024 PLN 13,570m +10.0% YoY 14.8m +4.0% YoY PLN 3,790 +5.8% YoY 12.18% +1.15pp YoY Revenue5 Adjusted EBITDA Adj. EBITDA / GMV margin Cash Conversion6 Q1 2024 PLN 2,081m +21.8% YoY PLN 8

  15. Slide 15: Added 562k Active Buyers YoY, with average annual spend per buyer accelerating QoQ

    Polish Operations Added 562k Active Buyers YoY, with average annual spend per buyer accelerating QoQ Active Buyers (period end) LTM GMV / Active Buyer (period end) m PLN m 4.0% 5.8% 0.4% 1.4% 1.2% 0.9% 2.3% 1.0% 1.1% 1.4% QoQ YoY QoQ YoY 15

  16. Slide 16: GMV in Poland up by 10.0% in Q1

    Polish Operations GMV in Poland up by 10.0% in Q1, with continued outperformance in high-frequency categories GMV1 PLN bn 14.0% 11.3% 10.5% 8.5% 10.0% ● LTM2 GMV of PLN 56.0bn, up by 10.0% YoY and advancing 6.8% 11.5% 12.5% 13.9% 11.6% by PLN 1.2bn QoQ ● GMV growth rose 1.5pp QoQ to 10.0% for Q1 ● G

  17. Slide 17: Revenue advances 22%, helped by take rates, advertising and consumer loans

    Polish Operations Revenue1 advances 22%, helped by take rates, advertising and sales of consumer loans Revenue bridge1 Take Rate3 PLN m % Q1’24 Take Rate up by 1.15pp YoY, with rate card and 21.8% 25.7% -1.4% -21.7% 219.7% 21.8% co-financing changes for 2024 made late February 2 YoY 1. Includes Total

  18. Slide 18: Adjusted EBITDA growth accelerated to 36.6% YoY

    Polish Operations Adjusted EBITDA growth accelerated to 36.6% YoY, driven by higher GMV and take rate, margin-accretive advertising and a rising contribution from Allegro Pay ● Marketplace revenue reflecting accelerating Adjusted EBITDA bridge in Q1 20241 GMV growth at higher YoY take rates PLN m ● S

  19. Slide 19: Capex spend up by 4% YoY with continued focus on ROI

    Polish Operations Capex spend up by 4% YoY with continued focus on ROI metric and asset utilization Capital expenditures1 by type 4.0% PLN m 115.3 110.8 ● Capitalized development costs slightly reduced YoY thanks to: ○ Tightened development portfolio management ○ New time allocation tools ● Investme

  20. Slide 20: Q1 2024 key results: Mall Segment

    International Operations: Mall Segment Q1 2024 key results: Mall Segment GMV Active Buyers1 LTM GMV / Active Buyer3 Take Rate4 Q1 2024 PLN 493m -38.4% YoY 3.8m -7.9% YoY PLN 710 -24.3% YoY 14.31% +1.43pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV margin 1P Gross margin5 Q1 2024 PLN 397m -35.2% Yo

  21. Slide 21: Mall Segment losses contained despite continuing strong GMV contraction

    International Operations: Mall Segment Mall Segment losses contained despite continuing strong GMV contraction GMV bridge in Q1 2024 Adjusted EBITDA bridge in Q1 20241 PLN m PLN m -30.4% -33.8% -38.4% YoY change ● GMV down 38% YoY driven reduced marketing support to unprofitable ● YoY Adjusted EBITDA

  22. Slide 22: Q1 2024 key results: Allegro International Segment

    International Operations: allegro.cz & allegro.sk Q1 2024 key results: Allegro International Segment (allegro.cz and allegro.sk) GMV Active Buyers1 LTM GMV / Active Buyer2 Take Rate3 Q1 2024 PLN 264m N/A4 2.0m N/A4 PLN 459 N/A4 7.53% N/A4 Revenue Adjusted EBITDA Adj. EBITDA / GMV margin Q1 2024 PLN

  23. Slide 23: Active Buyers on 3P marketplaces has reached 2 million in just 8 months

    International Operations: allegro.cz & allegro.sk Active Buyers on 3P marketplaces has reached 2 million in just 8 months Active Buyers (period end)1 268.8% 106.7% 26.8% m ● Allegro.sk soft launched on 29 February, with hard launch and marketing support from 18 March Traffic2 181.3% 77.5% -22.7% Visit

  24. Slide 24: GMV in Q1 lower QoQ reflecting seasonality and FX headwind

    International Operations: allegro.cz & allegro.sk GMV in Q1 lower QoQ comparing to Christmas peak season and reflecting FX headwind, with further progress in EBITDA margin GMV 243.9% 110.6% -35.6% PLN m ● FX headwind on GMV from strengthening PLN in Q1 was 4.1pp vs Q4 and 7.5pp vs Q3 Revenue 404.3% 1

  25. Slide 25: Q1 2024 key results: International Operations

    International Operations Q1 2024 key results: International Operations1 (Allegro International Segment and Mall Segment) GMV Active Buyers2 LTM GMV / Active Buyer3 Take Rate4 Q1 2024 PLN 735m -8.1% YoY 5.2m +23.5% YoY2 PLN 687 -26.6% YoY2 9.42% -3.46pp YoY Revenue Adjusted EBITDA Adj. EBITDA / GMV m

  26. Slide 26: Q1 2024 key results: Consolidated Group

    Group Consolidated Q1 2024 key results: Consolidated Group1 GMV Adjusted EBITDA Take rate Q1 2024 PLN 14,305m +8.9% YoY PLN 706.2m +33.0% YoY 12.11% +1.07pp YoY Revenue Adj. EBITDA / GMV margin Cash Conversion2 Q1 2024 PLN 2,475m +6.6% YoY 4.94% +0.90pp YoY 82.2% +7.01pp YoY 1. Consolidated Group in

  27. Slide 27: Leverage down 0.45x QoQ to 1.38x

    Group Consolidated Leverage down 0.45x QoQ to 1.38x from rising LTM EBITDA, completion of merchant fee netting and low capex PLN m (unaudited) 31.03.2023 31.12.2023 31.03.2024 LTM1 Adjusted EBITDA Polish Operations 2,447.1 2,957.6 3,177.2 ● Strong cash flow delivered mainly thanks to steep improvemen

  28. Slide 28: Management outlook

    Management outlook 28

  29. Slide 29: Q2 2024 outlook

    Q2 2024 outlook Polish Operations International Operations3 Group consolidated Q1’24 Q1’24 Q1’24 Q1’24E Actual Q2’24E Q1’24E Actual Q2’24E Q1’24E Actual Q2’24E GMV 9-10% 10.0% 10-11% 3-5% YoY 8.1% 3-6% YoY 8-9% 8.9% 9-10% YoY YoY YoY decline YoY growth YoY YoY YoY growth growth growth decline growth

  30. Slide 30: Q&A

    Q&A 30

  31. Slide 31: Thank you.

    allegro Thank you.

  32. Slide 32: Appendix: Expanded group structure explained

    Appendix: Expanded group structure explained Consolidated Group: ALLEGRO.EU Polish Operations International Operations Reportable Allegro segment Allegro Ceneo Other Mall International Legal Allegro sp. z o.o. Ceneo.pl sp. z o.o. Allegro Treasury s.à r.l. Mall Group a.s. allegro.cz & allegro.sk (exc

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