Slide 1: Allegro.eu Q1 2021 Results presentation
| 1 Allegro.eu Q1 2021 Results presentation 13 May 2021
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 1 2 Highlights Financial results Agenda 3 4 Summary Q&A
Slide 4: Allegro grows revenue by 61% YoY in Q1 and raises full-year expectations
| 4 1 Allegro grows revenue by 61% YoY in Q1 and raises full-year expectations A solid start to FY 2021 underpinned by strong execution across retail basics, with Smart! penetration outperforming our plans: • Revenue growing strongly ahead of GMV in Q1 at PLN 1,210.2m, +61.1% YoY • GMV growing to PL
Slide 5: Q1 2021 key results
| 5 1 Q1 2021 key results GMV Active Buyers GMV per Active Buyer1 Take Rate2 PLN 9,596.4m 13.2m PLN 2,879.7 10.43% +46.1% YoY +13.4% YoY +38.9% YoY +1.12pp YoY Revenue Adjusted EBITDA Adjusted EBITDA / GMV Cash Conversion3 margin PLN 1,210.2m PLN 535.6m 5.58% 88.8% +61.1% YoY +50.6% YoY +0.17pp YoY
Slide 6: Key business developments during Q1 2021
| 6 1 Key business developments during Q1 2021 Adjacent International Consumer B2B expansion International verticals Smart! Advertising fintech DEX1 sellers Retail inbound Benefit from Basics underlying market growth “Accelerate the flywheel” “Incubate and maximise future levers” While considering o
Slide 7: Selection and Price: Dynamic increase in selection and consumer price attractiveness
| 7 1 Selection and Price: Dynamic increase in selection and consumer price attractiveness Continued Accelerated Record low merchant growth selection growth prices Decathlon Apart Fila Oppo Cyberpunk • Double digit growth of active merchants • Overall selection growing ca. 50% YoY with • Best quarte
Slide 8: DEX: Continuous improvement of delivery speed and convenience
| 8 1 DEX1: Continuous improvement of delivery speed and convenience Delivery speed improving Allegro Fulfillment to support Own lockers network to substantially merchants with delivery improve convenience +8 ppts % of parcels delivered in 1-2 days Q1 Q1 2020 2021 • Fast Delivery Subsidy launched in
Slide 9: Smart!: More users, stronger value proposition and improving economics
| 9 1 Smart!: More users, stronger value proposition and improving economics Growing engagement Improving Smart! Managing Smart! and user base for customers economics • Rising Smart! penetration and user Launched several improvements of Smart! for • Introduced merchant co-financing on engagement boo
Slide 10: CX / UX: Ongoing upgrades drive conversion and net promoter score
| 10 1 CX / UX1: Ongoing upgrades drive conversion and net promoter score Improving shopping Top ranking process in CX • Product and UX improvements drive shopping • Received Star of Customer Service Award for conversion to new heights 4th consecutive year • Improved mobile application shopping • NP
Slide 11: Monetization: Advertising revenues growing faster than marketplace revenues
| 11 1 Monetization: Advertising revenues growing faster than marketplace revenues Advertisers grow faster Ads products innovation drives Ads revenues outpace than total merchants ROI for merchants GMV growth • Number of advertisers grows x2 faster than • Improved ads ROI for merchants thanks to • A
Slide 12: B2B: Launch of the Allegro Biznes accelerating GMV growth
| 12 1 B2B: Launch of the Allegro BiznesTM accelerating GMV growth Largest B2B offering Positive uptake Leading to GMV in Poland by B2B buyers acceleration • Merchants willing to join Allegro Biznes as • Weekly B2B buyer activity increased by • Allegro Biznes growing faster than total sellers +20% a
Slide 13: Allegro Pay: Rapid acceleration towards delivery of 2021 growth targets
| 13 1 Allegro Pay: Rapid acceleration towards delivery of 2021 growth targets Continuous product improvement Q4 2020 Q1 2021 Great experience Increased usability Installment plans Instant activation and Introduced purchasing Introduced option to split Progress towards 2021 targets: effortless purch
Slide 14: ESG / CSR: Allegro joins UN Global Compact principles
| 14 1 ESG / CSR: Allegro joins UN Global Compact principles Joining Allegro for The Great Orchestra Charitable UN Global Compact of Christmas Charity Foundation Donations • Global Compact is the world's largest • Record PLN 30m raised through Allegro • PLN 2.5m total donations for health service, i
Slide 15: Continued increase in Active Buyers and GMV per Active Buyer
| 15 2 Continued increase in Active Buyers (+2.0% QoQ) and GMV per Active Buyer (+6.7% QoQ) supported through improving retail basics and rising Smart! penetration Active Buyers (period end)1 LTM GMV / Active Buyer (period end)1 m PLN 13.4% 38.9% 6.7% 3.3% 2.0% 9.6% 5.2% 2.3% 7.3% 12.6 13.0 13.2 10.
Slide 16: GMV grew 46% YoY in Q1 with FY19-21 CAGR at 40%
| 16 2 GMV grew 46% YoY in Q1 with FY19-21 CAGR at 40% GMV1 PLN bn 35.2% 71.5% 48.7% 57.5% 46.1% • LTM GMV reached PLN 38.1bn up by 56% YoY • Smart! penetration, marketing reinvestment and 10.9 innovation roadmap driving growth 9.4 9.6 • Positive growth maintained in late Q1 despite starting 8.3 to
Slide 17: COVID-19 update
| 17 2 COVID-19 update Daily new confirmed COVID-19 cases per 1m people Shown is the rolling 7-day average 900 • 3rd wave in Poland peaked in early April 800 700 • Still in home working mode 600 • PLN 2.5m in donations to health service, 500 charities and NGOs in Q1 400 • Non-essential stores in sho
Slide 18: Revenue continued to grow ahead of GMV in Q1 2021, up by 61.1% YoY
| 18 2 Revenue continued to grow ahead of GMV in Q1 2021, up by 61.1% YoY Net revenue Quarterly net revenue structure PLN m PLN m 61.1% 36.6% 65.3% 49.7% 61.2% 61.1% 1,210.2 1,299.0 0.5% 1,210.2 0.4% 9.1% 4.9% 4.1% 1,019.0 0.5% 8.4% 4.4% 928.7 0.6% 751.2 8.0% 8.4% 4.0% 751.2 0.8% 5.9% 8.0% 85.6% 87.
Slide 19: Co-financing and delivery monetization drive rise in Take Rate
| 19 2 Co-financing and delivery monetization drive 112 bps YoY rise in Take Rate. Advertising revenue growing 69% YoY Net Revenue Bridge Take rate1 PLN m % • Key pricing initiatives done for 2021 63.4% 68.9% 13.9% 80.7% -8.2% 61.1% • Mix, price defect reduction, and pay-for- performance rebates exp
Slide 20: Net delivery costs growth driven by rising Smart! penetration
| 20 2 Net delivery costs growth driven by rising Smart! penetration Cost of sales as % net revenue 32% 29% • Net costs of delivery up by 147% YoY due to rising 27% 8% number of Smart! users and their increasing 5% 23% 23% 4% engagement 3% 3% • Strong outperformance of revenue over GMV growth 4% 5%
Slide 21: Strong operating leverage impact on SG&A performance as % of revenue
| 21 2 Strong operating leverage impact on SG&A performance as % of revenue SG&A as % net revenue1 33% 30% 4% 29% • Strong top line growth and resulting operating leverage 5% 1% 27% 27% translating to 3.1 ppts YoY decline in SG&A as % of 4% 3% revenue 2% 2% 5% 10% 1% • PPC spend up 47% YoY with risi
Slide 22: Adjusted EBITDA at PLN 535.6m in Q1 2021, up by 50.6% YoY
| 22 2 Adjusted EBITDA at PLN 535.6m in Q1 2021, up by 50.6% YoY 18.4% 36.6% 26.7% 38.8% 50.6% 533.5 535.6 Adjusted EBITDA1 452.4 • Monetization initiatives and 408.5 advertising growth drove YoY PLN m 355.6 revenue and margin evolution • Investment into rapid Smart! growth remains a drag on EBITDA
Slide 23: Net profit growing 158% YoY in Q1
| 23 2 Net profit growing 158% YoY in Q1 Reconciliation of Adjusted EBITDA [PLN m] Q1 2020 Q1 2021 % Adjusted EBITDA 355.6 535.6 50.6% 1 Share based compensation costs Monitoring costs (0.8) – -100.0% accrued in Q1 2021 in relation to Regulatory proceedings costs (1.1) (0.4) -68.8% PSUs grant. Costs
Slide 24: Allegro Incentive Plan: 1st annual grants awarded in April
| 24 2 Allegro Incentive Plan: 1st annual grants awarded in April; supporting talent retention and shareholder alignment Key facts Key benefits • Performance Share Units (PSUs) and Restricted Stock • Drive ownership approach and shared goals among Units (RSUs) allocated to senior management and to m
Slide 25: Capex to revenue falls to 5.0% despite 38% YoY higher investment
| 25 2 Capex to revenue falls to 5.0% despite 38% YoY higher investment Capital expenditures1 by type PLN m 37.8% • Capitalized development cost from growing software 60.0 development team the main capex cost driver YoY 11.3 43.5 • Short delays in new office access postponed fit-out spending into Q2
Slide 26: Further organic deleveraging down to 2.1x
| 26 2 Further organic deleveraging down to 2.1x [PLN m] Mar-20 Dec-20 Mar-21 • Solid cash generation and strong financial results drove continued rapid deleveraging Adjusted EBITDA LTM 1,394 1,750 1,930 in Q1 2021, down by 0.4x QoQ to 2.1x Borrowings at amortized cost 6,170 5,438 5,443 • Declining
Slide 27: Expectations for 2021 moving up
| 27 2 Expectations for 2021 moving up 2020 FY 2021 FY 2021 Actual FY 2020 report Update Comments GMV 54% High teens% High teens-Low 20s% • Assumes March-April offline YoY growth YoY growth YoY growth retail lockdown is the last • Smart! outperformance Revenue 54% High 20s% Low 30s% • GMV outperform
Slide 28: Summary
| 28 3 Summary Strong start to 2021 on both consumer-facing inputs and financial outputs Raising financial expectations for 2021 Allegro Pay scale-up on track Continued progress on the delivery experience roadmap to drive additional logistics revenues and faster delivery Limited impact from recent c
Slide 29: Questions & Answers
| 29 4 Questions & Answers
Slide 30: Thank you
| 30 Thank you