Adevinta — Earnings Release 2022

Nov 24, 2022

Adevinta ASA (ADE) - Adevinta reports strong third quarter performance; announces new appointments to its leadership team and assignment of vertical responsibilities

Adevinta ASA (ADE) - Adevinta reports strong third quarter performance; announces new appointments to its leadership team and assignment of vertical responsibilities

* Acceleration of core markets revenue growth: +12% year-on-year

* EBITDA margin of 34.5%, excluding French DST(1), benefiting from strict cost

management

* New leadership team, with new key appointments; assignment of vertical

responsibilities to align with the 'Growing at Scale' strategy: Re-Commerce,

Mobility, Real Estate & Emerging Verticals

Oslo, 24 November 2022 - Adevinta ASA (ADE) ("Adevinta" or "the Company")

reported strong revenue growth of 12% for core markets in the third quarter

compared to the same period last year, as a result of strong recovery in

Mobile.de and continued solid performance in other markets.

* Online classifieds revenues improved by 13% year-on-year, supported by

double-digit revenue growth in Jobs and Motors benefiting from successful

price increases, higher dealer penetration and high added-value product

development for car dealers. Real Estate saw high single-digit growth in the

period;

* Transactional revenues grew by 79%, with strong revenue growth in all Core

markets;

* Advertising revenues were flat year-on-year. This was a result of the

overall weaker advertising business, especially in automotive display

advertising, partly offset by eBay Kleinanzeigen's strong performance in the

quarter.

Excluding the impact from the French digital services tax legislation (DST),

Group EBITDA was EUR141 million (representing a 34.5% EBITDA margin) and improved

by 12% compared to Q3'21.

This was the result of (i) the positive topline evolution, (ii) lower marketing

investment, driven by different phasing and spend allocation discipline, and

(iii) cost management in the current market context. This was partly offset by

(i) the continued build-up of global capabilities ahead of the implementation of

new operating models for enabling functions and Product and Technology teams,

and to accelerate new business model development and value creation, and (ii)

higher direct costs from transactional services, in line with the adoption of

the service and revenue growth.

Group consolidated EBITDA amounted to 132 million euros, up 5% year-on-year,

negatively impacted by the EUR(9) million euros provision booked related to the

French DST.

New appointments in the leadership team and assignment of vertical

responsibilities to align with the 'Growing at Scale' strategy

In line with the 'Growing at Scale' strategy, Adevinta will start to verticalise

its operations based on its three key pillars:

* Re-Commerce;

* Mobility;

* Real Estate & Emerging Verticals (including Jobs and Holiday Rentals).

As part of this, Adevinta's executive leadership team (AdEx) announces new

appointments, effective 1 January 2023:

* Paul Heimann continues his duties as the CEO of eBay Kleinanzeigen, while

becoming the leader of the new Re-Commerce vertical.

* Román Campa, CEO of Adevinta Spain, will combine his existing

responsibilities while taking on a new role as Head of Real Estate &

Emerging Verticals.

* Ajay Bhatia, CEO of Mobile.de and already a member of the AdEx, will take on

a new role of Head of the new Mobility vertical.

* Alexandre Collinet, former deputy GM of leboncoin and most recently

responsible for the integration of eBay Classifieds Group into Adevinta,

will also join Adevinta's executive team, in the newly created role of Chief

Operations Officer (COO).

* Uvashni Raman (CFO) and Nicki Dexter (People, Communications & Workplace)

will continue in their roles.

* Gianpaulo Santorsola (European Markets), Zac Candelario (International

Markets) and Alex Alexander (Product & Technology) will leave Adevinta by

the end of 2022 .

* Julien Jouhault, currently CTO for leboncoin, will join the AdEX as interim

CPTO while the search for a permanent CPTO is conducted.

Antoine Jouteau, CEO Adevinta: "Our third quarter results demonstrate progress

against our key strategic and financial objectives. I am proud of our team and

our contribution to society in the face of a challenging macroeconomic

environment.

"We are adapting our organisation to make it even more efficient, with laser-

sharp focus on bringing more value to our users and clients.

"Aligning our operating structures with our strategy increases efficiency and

speed, as well as our ability to cater to evolving customer needs with tailored

and innovative products and services. It also allows us to capture further

opportunities within these vertical areas, and enhances our competitiveness and

resilience.

"My new executive team and I share the same vision and ambition for Adevinta. It

is my pleasure to welcome Alexandre Collinet, Julien Jouhault, Paul Heimann and

Román Campa. Each brings with them a combination of entrepreneurial spirit,

industry knowledge and a proven track record of commercial success. I thank Alex

Alexander, Gianpaolo Santorsola and Zac Candelario for their contributions to

Adevinta and wish them well in their next endeavours.

"I remain very confident and excited about the many opportunities that we have

ahead of us. As we navigate the current uncertain environment, we will continue

to balance growth and profitability with disciplined investment in the mid to

longer term."

Highlights of Q3, 2022

Strong Q3 2022 results performance in a soft macro environment

Acceleration of core markets revenue growth: +12% year-on-year

* Steady double-digit growth in Classifieds (+13%), with continued strong

performance in Jobs (+15%), Motors (+13%) and Real Estate (+10%)

* Acceleration in Consumer Goods transaction volumes especially in France

(+49%) and eBay Kleinanzeigen (+140%)

* Resilient advertising revenues, flat year-on-year, despite lower OEM spend

and weaker market environment

Total consolidated revenue growth(2): +11% year-on-year

* Total consolidated revenues of EUR408m

EBITDA margin of 34.5%, excluding French DST, benefiting from strict cost

management

* EBITDA excluding French DST of EUR141m, up 12% year-on-year

* French DST(1) YTD adjustment of EUR(9)m

* Total consolidated EBITDA of EUR132m (representing a 32.4% margin)

Acceleration of cash generation and deleveraging

* Adjusted NCF from operating activities: EUR145m(3)

* Debt repayment: EUR90m in the quarter, prioritising floating debt

* Continued cash optimisation measures

Further steps to deliver our Growing at scale strategy

New leadership team, with new key appointments; assignment of vertical

responsibilities to align with the 'Growing at Scale' strategy:

* Re-Commerce, led by Paul Heimann

* Mobility, led by Ajay Bhatia

* Real Estate & Emerging Verticals, led by Román Campa

2022 portfolio optimisation programme close to completion with sales of Mexico,

Australia and South Africa closed and Canada review completed

Continued execution on strategy for growth businesses with increased

monetisation of Motors and Real Estate verticals and continued rapid scaling and

product launches of transactional services

Outlook

FY 2022 target confirmed

* Low double-digit revenue growth for core markets

* Underlying EBITDA(4) in the range of EUR575-600m range, including French DST

impact

2023 outlook

* Double-digit Core Markets revenue growth despite soft macro environment

* Year-on-year improvement in EBITDA margin

* Group leverage down to 2-3x net debt/EBITDA by year-end

* Long-term ambition remains

Synergy targets confirmed to achieve our financial ambition

Financial performance

Combined* | IFRS |

| |

| Year-to- |

Third quarter   Year-to-date | date |

------+-----+------ ------+-----+-----+-----+-----+

yoy% |2021 |2022 EUR million 2022 |2021 |yoy% |2022 |2021

------+-----+-----+------------------------------+-----+-----+-----+-----+------

10%| 371| 408|Operating revenues |1,213|1,127| 8%|1,213| 745

------+-----+-----+------------------------------+-----+-----+-----+-----+------

5%| 126| 132|EBITDA | 403| 390| 3%| 403| 232

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|34.0%|32.4%|EBITDA margin |33.2%|34.6%|  |33.2%|31.1%

------+-----+-----+------------------------------+-----+-----+-----+-----+------

2%| 139| 141|Underlying EBITDA | 430| 416| 3%| 430| 248

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|37.4%|34.5%|Underlying EBITDA margin |35.5%|36.9%|  |35.5%|33.3%

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |Operating revenues per segment|  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

12%| 106| 119|France | 365| 335| 9%| 365| 335

------+-----+-----+------------------------------+-----+-----+-----+-----+------

15%| 71| 82|Mobile.de | 231| 214| 8%| 231| 71

------+-----+-----+------------------------------+-----+-----+-----+-----+------

11%| 158| 176|European Markets | 522| 476| 10%| 522| 298

------+-----+-----+------------------------------+-----+-----+-----+-----+------

-6%| 32| 30|International Markets | 88| 97| -8%| 88| 36

------+-----+-----+------------------------------+-----+-----+-----+-----+------

0%| 0|  |Disposals |  | 3|-100%|  | 3

------+-----+-----+------------------------------+-----+-----+-----+-----+------

343%| 1| 3|Other and Headquarters | 9| 6| 63%| 9| 6

------+-----+-----+------------------------------+-----+-----+-----+-----+------

-161%| 2| -1|Eliminations | -4| -3| -21%| -4| -3

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |EBITDA per segment |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

2%| 52| 53|France | 173| 161| 8%| 173| 161

------+-----+-----+------------------------------+-----+-----+-----+-----+------

11%| 41| 46|Mobile.de | 125| 126| -1%| 125| 41

------+-----+-----+------------------------------+-----+-----+-----+-----+------

12%| 65| 72|European Markets | 212| 196| 9%| 212| 100

------+-----+-----+------------------------------+-----+-----+-----+-----+------

34%| 11| 14|International Markets | 37| 36| 5%| 37| 10

------+-----+-----+------------------------------+-----+-----+-----+-----+------

0%| 0|  |Disposals |  | -5|-100%|  | -5

------+-----+-----+------------------------------+-----+-----+-----+-----+------

-24%| -43| -53|Other and Headquarters | -145| -123| -18%| -145| -75

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

|  |  |Non-consolidated JVs |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+------

| | |Proportionate share of | | | | |

30%| 22| 28|revenues | 78| 60| 31%| 78| 60

------+-----+-----+------------------------------+-----+-----+-----+-----+------

15%| 5| 6|Proportionate share of EBITDA | 6| 8| -26%| 6| 8

------+-----+-----+------------------------------+-----+-----+-----+-----+------

* Combined: these figures reflect the results of Adevinta group as if the eBay

Classifieds Group (acquired on 25 June 2021) has been part of the group during

the full periods presented. These numbers are presented to facilitate

comparability.

Operating revenues by category

Combined* | IFRS |

| |

| Year-to- |

Third quarter   Year-to-date | date |

--------+----+----- ------+-----+----+-----+----+

yoy%(2)|2021|2022 EUR million 2022 |2021 |yoy%|2022 |2021

--------+----+----+---------------------------+-----+-----+----+-----+----+

13%| 278| 311|Online classifieds revenues| 912| 830| 11%| 912| 569|

--------+----+----+---------------------------+-----+-----+----+-----+----+

77%| 9| 16|Transactional revenues | 47| 33| 46%| 47| 30|

--------+----+----+---------------------------+-----+-----+----+-----+----+

-2%| 81| 79|Advertising revenues | 246| 260| -4%| 246| 141|

--------+----+----+---------------------------+-----+-----+----+-----+----+

13%| 2| 2|Other revenues | 7| 4| 61%| 7| 4|

--------+----+----+---------------------------+-----+-----+----+-----+----+

11%| 371| 408|Operating revenues |1,213|1,127| 8%|1,213| 745|

--------+----+----+---------------------------+-----+-----+----+-----+----+

* Combined: these figures reflect the results of Adevinta group as if the eBay

Classifieds Group (acquired on 25 June 2021) has been part of the group during

the full periods presented. These numbers are presented to facilitate

comparability.

Quarterly Earnings Release

Time: 24 November 2022 at 07:00 CET

Report for the third quarter of 2022, presentation materials, and spreadsheet

with key figures and analytical information will be made available on the

investor relations pages at https://www.adevinta.com/ir

(https://www.adevinta.com/investors/financial-results-publications).

Presentation of the Quarterly Results

Time: 24 November 2022 at 08:30 CET

The company will conduct the presentation as a live audio webcast and conference

call, including a Q&A session. CEO Antoine Jouteau and CFO Uvashni Raman will

present. The whole management team of Adevinta will participate in the Q&A

session.

The webcast will be available on https://www.adevinta.com/ir

(https://www.adevinta.com/investors/financial-results-publications) and on this

link: https://edge.media-server.com/mmc/p/eknfdtrf. Participants are also

invited to ask questions using the dial-in numbers below.

Dial-in details:

UK: +44 121 281 8004

USA: +1 718 705 87 96

Norway/Sweden: +46 850 51 00 30

France: +33 1 70 91 87 04

Spain: +34 917699498

Confirmation password: Adevinta2022Q3

A recording of the presentation will be available on our website shortly after

the live webcast has ended.

-End-

Media contacts

Mélodie Laroche

Corporate Communications

T: +33 (0) 6 84 30 52 76

melodie.laroche@adevinta.com (mailto:melodie.laroche@adevinta.com)

Edelman Smithfield

John Kiely / Latika Shah / Olivia Adebo

T: +44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7787 284 441

adevinta@edelman.com (mailto:adevinta@edelman.com)

IR contact

Marie de Scorbiac

Head of Investor Relations

T: +33 (0) 6 84 30 52 76

ir@adevinta.com (mailto:ir@adevinta.com)

Anne-Sophie Jugean

Investor Relations Manager

ir@adevinta.com (mailto:ir@adevinta.com)

About Adevinta

Adevinta is a leading online classifieds specialist, operating digital

marketplaces in 11 countries. The company provides technology-based services to

connect buyers with sellers and to facilitate transactions, from real estate to

motors, and consumer goods.

Adevinta's portfolio spans more than 25 digital brands, covering one billion

people and attracting approximately three billion average monthly visits.

Leading brands include top-ranked leboncoin in France, Germany's leading

classifieds sites mobile.de and eBay Kleinanzeigen, Marktplaats in the

Netherlands, fotocasa and InfoJobs in Spain, Subito in Italy, and 50% of fast-

growing OLX Brasil. Adevinta employs around 8,100 people, including 3,000

(approx) working in product and technology teams, committed to supporting users

and customers daily. Find out more at Adevinta.com (https://www.adevinta.com/).

***

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act

--------------------------------------------------------------------------------

(1) Prudent provision booked following unfavourable ruling received from the

French Tax Authority

(2) Continuing operations, excluding InfoJobs Brazil and Kufar

(3) Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease

payments

(4) Consolidated EBITDA before share-based compensation impact