Adevinta — Earnings Release 2020

Feb 11, 2021

Adevinta

Q4 2020 Results

Rolv Erik Ryssdal, CEO Uvashni Raman, CFO

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Key highlights from the quarter

Solid performance in Q4

Further progress on eCG acquisition

Integration of Grupo Zap in Brazil

Increased focus and reduced complexity following asset disposals

Confidence in mid-to-long-term trends but macro environment remains uncertain in the short term

Source: Adevinta estimates

All numbers on a proportionate basis incl JVs.

Frictionless end-to-end digital experience	Tailored solutions and ads
Ramp-up of transactional services	Application of machine learning
Strong acceleration and adoption of transactional services in France based on e-commerce features and new door to door shipping service released	Over 89 new machine learning use cases in 2020 (12 in Q4)
Encouraging deployment in Italy, Brazil, Austria, the UK and Spain	70% of them in the areas of ad insertion, personalisation or moderation

Regulatory process ongoing

EGM held on October 29 and approved all proposed resolutions

Share listing prospectus filed with the OSE in December

All required Foreign Direct Investment approvals from the relevant jurisdictions received

Clearance received from German antitrust authorities

Operational integration planning

Planning for organization and governance as of legal-day-1

Scoping and defining the TSA framework and governance

Mobilizing the integration teams across functions

Prioritizing and kicking off post legal-day-1 IT projects

Next steps

UK regulator to give its Phase 1 decision by 16 February

Austrian Phase 1 decision expected in March

Still targeting closing in Q1 2021, subject to regulatory approvals

Business Review

Rolv Erik Ryssdal, CEO

Lockdown #2 and ongoing nationwide curfew

Traffic continued its impressive growth in all categories with record numbers in consumer goods, Real Estate and professional equipment

Motors: used vehicles market better resisting the crisis. Car dealers supply back to last year level in December

Real Estate market: solid performance despite lockdowns (3rd best year ever in number of transactions)

Strong acceleration in transactional services

Hospitality, Travel and Leisure and Jobs strongly impacted by current restrictions

New organisation implemented: by market (integrating subsidiaries)

Price simulator for Real Estate and smart bumps and lead generation offers

Improving P2P payment solution in Motors

Bundle Argus / Leboncoin: launch on January 1st

Launch of new features to adjust delivery fee based on parcel size

Accelerated automation based on ML: auto categorization, pricing tools...

* Fashion excluded

P2P Pro offers (Rent or Hostel)

70% of holidays rental ads are P2P eligible

Buy your car online up to 30 000€

Wire & bank transfer

Growth in traffic in Real Estate and motor verticals, but slow down in generalist and Jobs

Drop in new and used vehicles sales although softer in the latter

Decline in number of transactions in the Real Estate market

Boost in e-commerce but flat average buyer spending

Digital ad spending showed resilience

Launch of new app design system, and bidding for ad position in Fotocasa

Price recommender for private ad insertion, and financing service for professional dealers in motor

Pack enterprise multibrand for big companies and company profile search engine in Jobs

Delivery label on listing in Milanuncios to facilitate transactions

Traffic and liquidity remain high, growing at double digits

No harsh lockdown, recovery of the economy in H2 in a still uncertain context

Lower cars production and higher demand for used cars leading to lack of stock and reduction in dealers size

Interest rates at all times low leading to a boom in construction and house financing

Integration of Grupo Zap and launch of cross-sell offer

Expansion of OLX Pay & ship to web with improved flows, better filters and visibility

Safety: verified profiles for cars and trucks

Improved customer journey with a new client support homepage

The majority of the teams became compliant with the Brazilian GDPR

Solid growth in traffic and content Motor gaining share of content and dealers Successful launch of transactional offering in December	Strong growth in traffic and content Buyer protection service in paylivery (peer-to-peer payment and delivery service) rolled out in December Exceptionally strong quarter in Advertising reaching record levels	Positive evolution of supply and demand despite stringent local covid-19 restrictions Increase in motor dealer share and promising first results of mortgage initiative in Real Estate	Encouraging increase in delivery service figures throughout the quarter Challenges in Jobs persisted due to the unfavourable market environment	Continued progress made in the shift towards a full end-to-end transactional model Significant marketing investment in Q4 to maintain momentum and scale the model

Continued portfolio management: exit Tunisia, Morocco and Colombia in the quarter

Q4 Financial Performance

Proportionate Revenues incl. Joint Ventures

Proportionate EBITDA incl. Joint Ventures

$£51m$ vs. €52m in Q4 2019

Total revenues up 8% yoy

Classifieds revenue grew 14% driven by ramp up in transactional growth in consumer goods and recurring revenue in Motors and Real Estate

Display advertising suffering from weak market due to new lockdown

Slightly deteriorated due to further investment in transactional model boosted by promotions on delivery fees and hirings ramp up

Partially offset by strict cost control measures, limited third-party services and restrictions in travel and events

Revenue decreased 7% as in previous quarter, impacted by increasing restrictions

Motors and programmatic advertising up yoy

Real Estate down yoy due to contraction in the market

Jobs most affected given cyclical nature

Above 30% despite resuming investments in talent after hiring freeze and reactivation of marketing

Other cost saving measures (marketing spending and administrative costs reduction)

Commercial activity focused on customer base reactivation and retention, in particular in Jobs

• Local currency revenue up 53% yoy including Grupo ZAP OLX Brasil underlying revenue up 4% yoy Solid performance in indirect advertising and Real Estate
• Good development of SMB clients in Motors and Real Estate

EBITDA down €3m yoy

• Unfavorable phasing of marketing (50% of yearly marketing spending took place in Q4)
• Continued investment in Product & Tech
• Grupo ZAP: revenue of 8m€ and positive EBITDA contribution in Q4 (as from end of October)

Local currency revenues down 4% (flat excluding disposals)

Classified revenues down 7% (2% down excluding disposals)

Good recovery in Italy continues, mainly driven by Motors with increase in market share and content

Strong performance in Ireland and Willhaben (high single digit yoy growth) Progressive improvement in advertising trends throughout the quarter

Acceleration of marketing investment in Shpock to support adoption of P2P solution

Ireland and Willhaben improved EBITDA compared to LY

Positive impact of €1 million from disposed assets

In order to fully align Global Markets segment reporting with Management reporting and to create full consistency between the Brazil and Global Markets segments when it comes to how Joint Ventures are presented, Willhaben revenues and EBITDA are included on a 100% basis for both periods. For more details (including reconciliation information and historical numbers, please refer to the Investors section of the Adevinta website)

HQ & other EBITDA improved c. €3m yoy to €(14)m

• ○ Lower personnel costs (lower incentives, impact of Product & Tech reorganisation and other one-offs)
• ○ Reduction in administrative costs (travel, third-party services, etc) in the covid-19 context

€10m yoy increase in other expenses due to M&A and integration-related expenses

Impairment charges of c.€43m related to Yapo assets write-down in Chile

• Cash & cash equivalents of €131m at the end of December
• Drawdown of €65m from €400m Revolving Credit Facility partially fund the acquisition of Grupo Zap. Remaining portion funded with bridge facilities put in place in April
• Net Debt / EBITDA at 2.0x at the end of December¹
• Refinancing with Senior Secure Notes & Institutional Term Loans to become effective at closing of the eCG acquisition.
• ● Medium-term target leverage ratio² : 2x to 3x

Update on OLX Brasil

Andries Oudshoorn, CEO OLX Brasil

Brazil is showing signs of economic recovery and brings big opportunities in our still under explored market

After a -4.0% recession in 2020, foreseen GDP arowth is at 4.3% (MSER) in 2021

Inflation has been under target and is expected to remain controllable in a scenario of limited fiscal slippage

Interest rates at all time lows are leading to a boom in construction and house financing

Covid is rapidly accelerating digitalisation of end-to-end user experience in all verticals

Low car production led to a lack of inventory and to high liquidity of used cars

Open banking new regulation comes into effect in Feb, 21 and expects to move R\$120 bn from incumbents to new entrants like marketplaces

Professional dealers subscribers

December 2020, thousands

There is still ample room for increasing our share of the commission pool

… and Motors

Buy on chat

Payment confirmation

Pay & Ship User experience Value added services

Image on chat trial

Ad insertion improvement

Additional partners and qualify question to improve conversion

30

Client Overlap Across Platforms

Source: GZAP and OLX DATA; Accenture Analysis; 1 Although ZAP and VR clients are not already GZAP, they represent a cross-sell opportunity due to the commercial strategy of converting them to GZAP offering in the same time OLX cross-sell

Corporate Brand gives identity to employees and represents the entire group

BU Brands represent the commercial function of the business unit, supporting our sales strategy

Product Brands are the final products and services that consumers come into direct contact with

And we are already capturing synergies from business combination

Business	Tech	Finance	People
Solid growth in organic traffic and leads	Most corporate tools now unified	Synergies captured in facilities and infra	New org structure in place
Pricing quick wins	System integration plans designed - Data, ERP, CRM,	New P&L model and BU structure established	Culture development, change management and
Cross Sell pilot ongoing	infra/cloud		communication ongoing
Triple bundle development started	RFP for hiring a consultancy to supporting the ERP Integration	Integrated financial reporting	Headcount plan in place
E2E rentals test in progress with more partners

OLX GZAP

• ➔ Acceleration of consumer behavior evolution will support rise of leading players in online classifieds
• ➔ Operational focus on growth, client relationship and further expansion of leading market positions, while adapting investments to the uncertain business environment
• ➔ Revenue mix evolution is expected to have a negative impact on EBITDA margin in 2021
• ➔ Combination with eCG expected to foster further innovation and efficiency over the long run - estimated €130-165m run-rate annual EBITDA impact in year 3
• ➔ Integration phase to start at closing with global assessment of market opportunities and strategic plan definition
• ➔ CMD on combined entity and perspectives to be held in H2 2021

Rank	Name	Shares	%
1	Schibsted ASA	406,050,523	59.3%
2	Baillie Gifford & Co.	27,323,460	4.0%
3	Folketrygdfondet	25,057,775	3.7%
4	Blommenholm Industrier AS	23,992,516	3.5%
5	Capital World Investors	11,239,972	1.6%
6	Fidelity Management & Research Company LLC	8,451,418	1.2%
7	The Vanguard Group, Inc.	7,605,714	1.1%
8	Alecta pensionsförsäkring, ömsesidigt	6,985,326	1.0%
9	BlackRock Institutional Trust Company, N.A.	6,819,669	1.0%
10	Capital Guardian Trust Company	6,213,151	0.9%
11	State Street Bank and Trust Company	5,258,395	0.8%
12	UBS AG London	4,851,377	0.7%
13	Invesco Advisers, Inc.	4,662,349	0.7%
14	Premier Miton Investors	4,577,876	0.7%
15	DNB Asset Management AS	4,455,610	0.7%
16	Alfred Berg Kapitalforvaltning AS	4,376,074	0.6%
17	Pelham Capital Ltd	4,352,534	0.6%
18	Mitsubishi UFJ Trust and Banking Corporation	4,249,056	0.6%
19	Vor Capital LLP.	4,148,702	0.6%
20	Handelsbanken Asset Management	4,139,775	0.6%

Source: Nasdaq OMX. Data as of 31 December 2020

Updated information and VPS register at: https://adevinta.com/ir/shareholders/

The shareholder ID data are provided by Nasdaq OMX.

The data are obtained through the analysis of beneficial ownership and fund manager information provided in replies to disclosure of ownership notices issued to all custodians on the Adevinta share register. Whilst every reasonable effort is made to verify all data, neither Nasdaq OMX or Adevinta can guarantee the accuracy of the analysis.

Ticker
Oslo Stock Exchange	ADE
Reuters	ADE.OL
Bloomberg	ADE:NO
Number of shares	684,948,502
Treasury shares (February 10, 2021)	52,227
Number of shares outstanding	684,896,275
Free float*	40.7%
Share price (February 10, 2021)	NOK 141.20
Average daily trading volume (shares)**	864,818
Market Cap total (February 10, 2021)	NOK 96.7bn (USD 11.5bn)

* Total number of shares excluding treasury shares and shares owned by Schibsted ASA

** Last hundred days on the Oslo Stock Exchange

Marie de Scorbiac, Head of Investor Relations ir@adevinta.com | +33 6 1465 7740

Adevinta ASA Akersgata 55, P.O. Box 490 Sentrum

www.adevinta.com