Adevinta — Earnings Release 2022

Nov 24, 2022

Q3 2022 Results

Antoine Jouteau, CEO Uvashni Raman, CFO

24 November 2022

Disclaimer

IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Adevinta ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.

The Information does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of the Company, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding such securities. Any securities of the Company may not be offered or sold in the United States or any other jurisdiction where such a registration would be required unless so registered, or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, or other applicable laws and regulations is available. The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Information is not for publication, release or distribution in any jurisdiction in which offers or sales would be prohibited by applicable law.

The Information has been prepared by the Company, and no other party accepts any responsibility whatsoever, or makes any representation or warranty, express or implied, for the contents of the Information, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection with the Company and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future.

The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business.

These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document.

This presentation contains statistics, data, statements and other information relating to the group's markets and the industry in which it operates. Where such information has been derived from third-party sources, such sources have been identified herein. In addition, the Company has been named as a source for certain market and industry statements included in this presentation. Such "Company information" reflects the Company's views based on one or more sources available to it (some of which are not publicly available, but can be obtained against payment), including data compiled by professional organisations, consultants and analysts and information otherwise obtained from other third party sources.

Highlights of the quarter Antoine Jouteau, CEO

100-day takeaways: Adevinta is best positioned to capture significant business opportunities

Leading platforms :

unique traffic, liquidity and content (C2C / second-hand). Loved and trusted European local brands.

Resilient business model with high profit margin and steady free cash-flow.

Large untapped potential in transactional services, and verticals.

Firm purpose clearly geared towards sustainability.

Committed and experienced teams with 3/4th sales and tech profiles, including 2,600+ P&T talents.

Strong team willingness to change, contribute and transform Adevinta.

Our Growing at Scale strategy remains on track and we are focused on execution

Priorities to unlock Adevinta's potential and create value for our customers and stakeholders

FOCUS 1	Operational excellence	Customer-centricity and focus on high value development Implementation of most efficient operating models, tools and processes
FOCUS 2	Top-line growth	Actions in core countries and markets: improved commercialisation approaches, with more business focus
FOCUS 3	Financial performance	Ambitious and strict cost control plan: rigorous financial discipline and capital allocation
FOCUS 4	People	Retention and onboarding of all employees in transformation journey
FOCUS 5	Sustainability	Embed sustainability as the thread that runs through our business and operational initiatives

Key highlights of the quarter Execution of our Growing at Scale strategy under new leadership

Strong Q3 financial performance in soft market environment

Continued acceleration of core markets revenue growth : +12% yoy

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

Acceleration of cash flow generation and strong financial position

FY 2022 targets confirmed

Towards optimised organisation to drive scale benefit

Portfolio optimisation review to be completed by year-end

New vertical responsibilities and changes to the leadership team to align with our strategy

Business integration on track,

with implementation of new operating models in support functions

Operational excellence to generate profitable growth

Motors and Real Estate

successful price increases, higher client penetration and successful product launch

Continued rapid scaling of our transactional services supported by further product launches and marketing activities

New executive team with vertical and functional responsibilities To align with our strategy

Optimising our P&T resources To be more efficient and foster innovation: thinking globally to win locally

Portfolio strategic review to be completed by year-end

	Exit completed		Strategic review
Infojobs Brazil	Closed in March
Belarus	Closed in May
Mexico	Closed in September
Australia	Closed in October
South Africa	Closed in November
Canada			Review completed: Adevinta continues to operate and optimize, outside of core markets
Hungary			Decision expected by the end of the year

Use of proceeds: priority on deleveraging

Continued solid long-term growth paths for Core platforms despite tough '21 comps and weaker motors market

1 Visits: every user session on a single device, based on internal data for eBay Kleinanzeigen, leboncoin and Mobile.de

Consent rates and tracking related adjustment applied for eBay K for Q3'21, Q4'21, Q1'22, Q2'22, Q3'22 and Mobile.de Q1'22, Q2'22, Q3'22. Privacy legislation differently interpreted in France, no adjustments are needed.

Motors PRO listing still down year-on-year But our strong value proposition is reflected in successful commercial activity

Price and client base evolution
	Price	Dealers
leboncoin	ARPA: 410€ +16% yoy	22k -6% yoy
Mobile.de	ARPL: 22€ +27% yoy	39k -2% yoy

	Q3 qoq
leboncoin	-10%
Mobile.de	+0%

Listings: Average number of dealer live listings - internal data

ARPA: Average Revenue per Account (formula for a given month: paying professional accounts revenue / # of paying professional accounts) ARPL: Average Revenue per Listing (formula for a given month: revenue generated from dealer subscriptions, features and insertions / average monthly live listings)

Dealers: based on internal data

Continued innovation To reinforce our leadership positions

for the View Item page

Triple bundle between MB Diffusion, eBay Kleinanzeigen and Mobile.de

Successful launch of our first Motors Online Buying solution at Mobile.de

Dealer prepares car and uploads listing to mobile.de Consumers can choose their next car from the largest range of used cars in DE Purchase contract incl. financing and additional services is signed fully online, mobile.de purchases vehicle from dealer Doorstep delivery within two weeks and incl. registration and insurance

• ● Consumers find a reliable, trustworthy, fully digital partner to fulfill their automotive needs
• ● Dealers can access new online sales and sourcing channels, enabled by mobile.de as their partner
• ● First successful deliveries to customers

Real Estate PRO listings driven by market dynamics While our strong value proposition drives ARPA and client penetration up

ARPA and customer evolution
	ARPA	Customers
leboncoin	560€ +10% yoy	21k -2% yoy
eBay Kleinanzeigen	110€ flat yoy	9k +22% yoy

Listings: Average number of agents live listings - internal data

ARPA: Average Revenue per Account (formula for a given month: paying professional accounts revenue / # of paying professional accounts) Customers: based on internal data

Strong value proposition supported by ongoing innovation

Real time email alerts

Where will my ad be?

Multi-apply for new construction

Continued rapid scaling of our transactional services Boosted by further product launches and marketing activities

Increasing traction, especially in France and at eBay Kleinanzeigen

Further product launches in France and eBay Kleinanzeigen

Benelux, Italy and Spain growing month after month, supported by successful promotional campaigns

Marketing activities to continue in Q4 (Black Friday, Christmas…)

Transactions
Number of payouts (evolution in %)
	Q3 2022	Sept 2022 LTM vs Sept 2021 LTM
leboncoin	+49% yoy	+42%
eBay Kleinanzeigen	+140% yoy	+203% Solution launched in H2 2020

Payouts: payments made to sellers following a successful transaction

Acceleration of product launches To drive further growth

Buy now option

Wallet and split payment solutions fully deployed

B2C Marketplace

17

Transformation of advertising

19% of revenues from Advertising, with strong differences between markets

Top vertical	€79m
advertisers:
Auto-related	40%
Finance
Consumer products	60%
Internet
& telecom

Q3 trends

1p direct display:

Challenged by continued soft Automotive OEM spend and economic uncertainty

3p advertising:

Slight revenue increase in Core markets, driven by positive traffic trends

Each market operates and monetizes their traffic in different ways:

• LBC and Spain: most reliance on 1P, with direct access to agencies and advertisers to sell at higher value
• eBay Kleinanzeigen: scaled and optimized layout to maximize 3P monetization through experimentation and active yield management tools and processes

We are transforming advertising

Continued investment in 1P advertising products

• Direct display: increased focus and resources at eBay Kleinanzeigen
• 1p PLA:
  • Marktplaats Pro, a comprehensive SMB advertising offering
  • Ignite, our 1P retail media proposition for eBay Kleinanzeigen

Complementing our offering to professional sellers on the platform

• Self service display
• 1p PLA

Other innovations:

• Exploring new formats
• Rollout of AdSense across markets

Ignite solution eBay Kleinanzeigen

Q3 2022 financial performance

Uvashni Raman, CFO

Group | Continued acceleration of Core Markets revenue growth

Revenues at €408m, up 11% year-on-year (excl. disposals)

Core markets revenue up 12% yoy

Classifieds revenues up 13%, with strong performance in all verticals

• Jobs up 15% yoy
• Motors up 13% yoy, benefitting from price increases, which more than offset supply shortage
• Real Estate up +10%

Transactional services up 79% yoy

● Continued acceleration of CG transactions, especially in France (+49%) and eBay Kleinanzeigen (+140%)

Advertising revenue flat

• Lower market environment and OEM spend
• Offset by eBay Kleinanzeigen strong performance

¹ Disposals: Adevinta exited, InfoJobs Brazil (in Q1 2022) and Kufar (in Q2 2022) which represented 3 million euros revenues in Q3 2021 2 Excluding Australia and South Africa operations

Group | Improved EBITDA margin benefiting from strict cost management

Reported EBITDA up 5% year-on-year to €132m EBITDA margin of 34.5%, excluding DST, up 50 bps vs Q3 2021

Reduction of marketing investment driven by different phasing and spend allocation discipline

Increase in personnel costs:

• Continued build-up of global capabilities ahead of the implementation of new operating models for support functions and Product and Technology teams
• Ramp-up in product and technology resources to accelerate new business model development and value creation

Strict control of other operating costs

Direct transaction costs increase reflecting adoption of the service and revenue growth

Impact of French DST provision

Reported EBITDA margin of 32.4% and underlying EBITDA¹ margin of 34.5%

Revenues

Double-digit revenue growth, up 12% yoy

Classifieds revenues up 9% yoy driven by:

• Real Estate, with positive ARPA evolution (+10% yoy)
• Motors, with positive development in ARPD (+16% yoy)

Jobs revenues down yoy due to lower listing fees

Strong growth in transactional revenues, up 63% yoy, driven by transaction volume growth and AOV increase

Advertising revenues down 5% yoy, impacted by reduced activity from media agencies and programmatic

EBITDA margin

Excluding DST, margin improvement (up 2.9pp yoy and up 0.3pp qoq), mainly driven by:

• Topline evolution
• Lower external services fees (-45% yoy), led by cost management
• Lower marketing costs (-12% yoy), led by seasonality

Partly offset by:

• Increased personnel and IT costs due to continued investment in P&T development
• Increasing share of transactional services

Reported EBITDA at €53m, up €1m (+2%) yoy, including the French DST provision (€9m)

France Update on French DST

Unfavourable ruling received from French Tax Authority in Q3

• Interpretation by Tax authority: any type of classified revenue should be included in the DST taxable base
• Contradicts the Adevinta's counsels' interpretation of the bill, the law and parliamentary discussion

Despite objection and upcoming recourse, Adevinta recorded a prudent provision corresponding to the highest level of risk per previous disclosures

• €9m in relation to YTD 2022 impact (c. €3m per quarter), included in EBITDA
• €31m in relation to FY2019-FY2021, included in Other expenses (previously disclosed as a contingent liability)

Mobile.de Revenue growth acceleration driven by successful price increases Profitability impacted by higher personnel and marketing expenses

Revenues

Up 15% yoy

Classified revenues up 18%:

• Increase in ARPL, up 27% yoy, driven by 2 successful price increases (+19% in April and +14% in August 2021) across dealers
• Higher revenues from private sellers
• Mitigating the impact of lower dealer listings, down 8% yoy due to global motor supply shortage

Advertising revenues down 10% yoy due to market headwind and lower OEM spend

EBITDA margin

Margin softening (down 2.3pp, but up 2.7 qoq). Topline evolution offset by:

• Higher personnel expenses to support new business initiatives (eg: online buying & selling and leasing)
• Higher marketing costs (up 23% year-on-year) as a result of very low comps and marketing effort in the context of pricing initiatives and new products roll out

Reported EBITDA at €46m, up €4m (+11%) yoy

European Markets Double-digit revenue growth and resilient margin despite higher personnel expenses and business mix evolution

Revenues

Up 12%* yoy

Strong performance of Classifieds, up 14%* yoy, driven by growth in all verticals

Continued strong traction from transactions, with revenues x2 yoy

Advertising revenues up 2%* yoy, mostly led by eBay Kleinanzeigen strong performance

Outstanding performance at eBay Kleinanzeigen (+22% yoy) and double-digit growth in Spain (+13% yoy) and Italy (+13% yoy)

EBITDA margin

Resilient margin (up 0.3pp yoy), with positive topline evolution partly offset by:

• Higher personnel expenses due to continued investment in P&T development and marketing and sales support
• Increase in transactional costs, led by higher volumes and by promotional campaigns to drive adoption of the service

Marketing costs reduced by 5%, mainly driven by lower spending in Italy

Reported EBITDA at €72m, up €7m (+12%) yoy

Strong revenue performance with double-digit growth European Markets in eBay Kleinanzeigen, Spain and Italy

Revenue split by market (Q3 2022)

Outstanding revenue growth (+22% yoy) - significant momentum in Consumer Goods, with strong performance from SMBs, Motors and Real Estate. Double-digit revenue growth in advertising, behind higher vibrancy and increasing yield. Transactional revenues x2

Double-digit revenue growth (+13% yoy) - continued strong recovery in Jobs (+26% yoy) and good performance in Real Estate and Motors. Advertising revenues up, benefiting from key account activity

Flat revenues - growth in online classifieds revenues and transactional revenues, pushed by launch of promotional shipping campaigns, offset by lower advertising revenues

Double digit revenue growth (+13% yoy) - strong performance in Jobs and Motors and strong momentum of transactional services

International Markets Resilient performance despite advertising revenue contraction, offset by lower marketing spending

Down 1%* yoy

Classified revenues up 4%* yoy

Advertising revenue down 13%* yoy, driven by continued vibrancy pressure and soft direct display revenues in Canada

EBITDA margin

Margin improvement (up 14.2pp yoy), with slight negative top line evolution offset by:

● Lower marketing costs (-41%* yoy)

● Lower personnel costs (-27%* yoy), mainly due to lower share based compensation

Reported EBITDA at €14m, up €4m (+34%) yoy

Revenues

Up 13% in local currency

Strong revenue growth in Motors, Consumer Goods and Real Estate

Transactional revenues 3x yoy

Advertising revenues impacted by lower traffic

EBITDA margin

Margin softening (down 3pp yoy). Topline evolution offset by:

• Increase in marketing efforts mainly driven by ZAP+ branding and performance
• Continued investment in product & technology team and high salary inflation level
• Increase in transactional costs, in line with the adoption of the service and due to promotional campaigns

EBITDA at €8m, down 4%* yoy

EBITDA decreased by €10m yoy

Continued build-up of global capabilities ahead of the implementation of new operating models for support functions and Product and Technology teams to drive operational efficiencies and accelerate value creation

Slight increase in Headquarters costs, in the context of the eCG integration

Increase in central Product and Technology costs, with higher IT and licence costs led by increased usage

HQ costs stable yoy, at 4% of revenues, while central P&T costs slightly up yoy (+1.6pp) at 9% of revenues

Continued progress on our integration roadmap

Split September 30 executed synergies

Global contract secured for marketing (media agency), that will unlock synergies in 2023 and onwards

Continued implementation of our functional operating models with major system rollouts (mainly Finance and HR systems)

Exit of remaining TSAs

Platform rationalization and handover to local teams continue to deliver synergies

Additional procurement synergies executed

Upcoming major milestones, that will start delivering synergies from 2023:

Cloud migration

Data & Marketing transformation

Further P&T efficiency optimization

More than 100% of targeted FY2022 run-rate synergies already executed at the end of September

Other P&L items

	Third quarter
€ million	2022	2021
Gross operating profit (loss) = EBITDA	132	126
Depreciation and amortisation	(82)	(64)
Share of profit (loss) of joint ventures and associates	(5)	(1)
Impairment loss	-	-
Other income and expenses	(83)	(18)
Operating profit (loss)	(38)	43
Net financial items	(10)	(30)
Profit (loss) before taxes	(48)	14
Taxes	(2)	(12)
Profit (loss)	(50)	2
Profit (loss) from continuing operations	(54)	2
Profit (loss) from discontinued operations	(2)	2

Depreciation and amortisation costs up €(18)m yoy mainly driven by the reassessment of useful lives of certain trademarks

Other expenses up €(65)m, mainly driven by:

• DST in France related to 2019-2021
• Integration expenses related to the eCG acquisition
• Restructuring provision due to reorganisation in France

Net financial costs down €(20)m mainly due to a foreign exchange gain on the loan in BRL issued by Adevinta to OLX Brazil (vs. a foreign exchange loss on the same loan in Q3 2021)

Tax expense benefitted from the decrease in profit before tax and the reversal of deferred tax liability related to the amortisation of identifiable intangible assets recognised upon the acquisition of eCG

Acceleration of cash flow generation

* Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease payments

Positive change in working capital, non cash items and provisions mainly due to:

• Cost of cloud services provider, prepaid in previous quarters
• DST provision
• Other WC adjustments

Capex

• Essentially capitalised development costs
• c. 5% of sales

Deleveraging: a priority

* Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease payments Senior Secured Net Leverage Ratio of 3.6x as of Q3 2022¹

2x to 3x leverage ratio target to be achieved by end of 2023

Share buy-back programme completed

• 1 st tranche of 4m shares completed in March
• 2 nd tranche of 6m shares completed in October
• Weighted average share price of 79 NOK

€240m debt repayment YTD

• €75m RCF repayment in Q1
• €75m RCF repayment in Q2
• €90m Term loan B EUR repayment in Q3

Operational cash optimisation measures underway to reduce interest expense

1 Based on the definition of the Facilities Agreement

Strong liquidity and long-term debt maturity

Measures in place to mitigate FX & Interest Rate exposures

Interest Rate Exposures

• Floating/Total Debt Ratio of 35% in Q3
• USD TLB: hedged at refinancing and until June 2024
• EUR TLB: exposed to floating rates
• Deleveraging: priority given to floating debt

FX Exposures

• Material transactional exposures (e.g. AWS) are hedged
• Balance sheet exposures are assessed on a regular basis
• FX cash kept at operational minimum
• Substantial M&A proceeds are hedged where possible

Conclusion & outlook

Antoine Jouteau, CEO

Value creation opportunity ahead of us Long-term ambition remains

Sustainable profitable growth underpinned by

• Resilient business models and strong market positions
• Optimised organisational structure: towards verticalisation
• Strict cost management programme
• Efficient operating model to leverage scale and drive efficiencies

FY 2022 targets confirmed

• Expected low double-digit revenue growth in core markets
• Underlying EBITDA¹ in the range of €575m to €600m, including the impact of French DST

2023 outlook

• Double digit revenue growth in core Markets despite soft macro environment
• Year-on-year improvement in EBITDA margin
• Leverage to fall to 2-3x net debt/EBITDA by year end

Thank you!

Appendices

Basic information

Ticker
Oslo Stock Exchange Reuters Bloomberg	ADE ADE.OL ADE:NO
Number of shares	1,224,942,981
Of which:
Class A shares	1,165,686,913
Class B shares (non-voting, not listed shares)	59,256,068
Treasury shares (November 23, 2022)	9,306,818
Number of shares outstanding	1,215,636,163
Free float*	21.8%
Share price (November 23, 2022)	NOK 77.5
Average daily trading volume (shares)**	482,898
Market Cap total (November 23, 2022)	NOK 94.2bn (USD 9.4bn)

Find out more

Visit Adevinta's website

About

• Board of Directors News
• Investor Relations Media Kit

Management Ventures

Investor Relations

Marie de Scorbiac, Head of Investor Relations | +33 6 1465 7740 Anne-Sophie Jugean, Investor Relations Manager | +33 6 7419 2281

ir@adevinta.com

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