Adevinta — Investor Presentation 2021

Nov 25, 2021

Q3 2021 Results

Rolv Erik Ryssdal, CEO Uvashni Raman, CFO

25 November 2021

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Highlights

Rolv Erik Ryssdal, CEO

Key highlights of the quarter Strategic update

• CMD Preview
• Portfolio strategy
  • Investment focus on 5 Core Markets: Germany, France, Spain, Benelux and Italy
  • Divestment of Australia and South Africa
  • Supportive of growth in JVs (OLX Brasil, Austria, Ireland)
  • Other markets under strategic review
• Synergy target confirmed: €130m considering planned divestitures¹
• Core Markets mid-to-long term targets
  • c.15% average annual revenue growth
  • 40-45% EBITDA margin
• Transaction between Permira and eBay completed
• Adevinta included in the DJSI Europe index with increasing score yoy

1 Run-rate EBITDA impact in year 3. Synergy number of €130m should be read in the context of reduced perimeter following the decision to divest some geographies and put several others under strategic view in order to simplify and focus our investments, reducing the addressable cost base for synergies

Key highlights of the quarter Financial performance

• Strong performance YTD with consolidated revenues up 12% and EBITDA up 19%
• Q3 revenue growth strength in Core Markets
• Total consolidated revenue excl. disposals up 6% yoy at €386m
• Strength in Core Markets classifieds (+8% yoy) despite supply pressure in Motors
• Display advertising revenues down 3% yoy
• Expected revenue growth acceleration in Q4, excluding mobile.de
• OLX Brasil revenue up 116% yoy at cst currency (+31% organic)
• Accelerated investment in marketing and P&T to deliver mid-to-long-term growth targets
• Top-line growth offset by investment 33% EBITDA margin
• Anticipated increase in marketing investment (back to pre-covid levels)
• Product development to drive growth acceleration in line with CMD targets
• Capacity build-up to prepare for TSA exits and ahead of synergy realisation

New reporting structure

Market Environment Business Initiatives

Vaccination ramp up (>70% of french adults)

GDP expected to grow to +6.3% in 2021 (after Q2 recovery to pre-covid levels) and +4% in 2022¹

Strong improvement of unemployment rates to 7.6% in Q3 (lowest rate since 2008)

Dynamic real estate market boosted by post lockdown effect and favorable financing conditions

Challenging period for the car market with shortages in supply directly impacting car dealers inventory

Launch of F2F payments and P2P for professionals

Verticalization continues to move forwards in all verticals:

• Real Estate: virtual visits, pricing by region and new mandate solutions
• Motors: L'Argus technical information deployed on apps
• Jobs: VIP clients boost, CV base monetization and improved application journey
• Holiday rentals: free edit and unlimited adlife

Security initiatives: reinforced trust and fraud fight

Market Environment Business Initiatives

Close to 70% of the German population fully vaccinated

GDP expected to grow +2.6% in 2021

Number of car transactions declining by -4% vs. 2020 (YTD). Chip shortage is impacting the car market, dealer supply is on an all time low. Gradual recovery expected in H2 2022

Traffic down 5.5% compared to Q3 2020 (high post covid lockdowns context). Up 1% compared to Q3 2019

Dealer price increase effective from August 2021, with minimal impact on dealer and listing coverage

Efforts of moving all C2C payment to one payment provider have been accelerated, Paypal has been successfully integrated into Adyen for all C2C web payments

Seller auction tests have started in C2B, to enhance the product offering

Roll-out of unified user flow for both financing offerings (Automatic offer & Dealer financing)

New Marketing TV campaign launched in September

SMBs: milestone of 21,000 subscribers reached in September

Real Estate: market share improvements with 15% yoy growth in subscribers

Advertising: Liberty Framework allowing for fast adaptation to latest market and regulatory developments

eBay K Marktplaats Spain Others

Market environment: recovery in Q3 but further restrictions imposed in Q4

B2C: continuous SMB outreach and pricing resulting in steady growth of B2C monetization

Motors: launch of intuitive search to offer verticalized experience; market share gains in Belgium

fotocasa	habitaclia	Infolobs
coches.net motos.net		milanuncio

Real Estate: new Pricing and Packaging launched in September. MVP of investor platform launched in Fotocasa

Jobs: recovery in all indicators (ToM, active ads). Successful marketing campaign

Motors and Advertising: impacted by car supply pressure

Italy: positive traffic development over a very strong Q3 2020; extended gains in market share in vertical segments and launch of TuttoSubito (payment & delivery solution)

Belarus: delicate political situation. Price increase and introduction of a new multi-region service in the quarter

Motors: automotive inventory shortage creating headwinds in dealer revenue

Real Estate: strength driven by continued account growth

Advertising: challenged by soft traffic development and soft Automotive display advertising

Canada Australia Others

Motors: strength driven by continued upselling of dealers to Autotrader group joint proposition

Advertising: challenged by soft traffic development (exacerbated by lockdowns & mobility restrictions) and soft automotive display advertising

Mexico: solid Real Estate traffic development and growth in Real Estate agent accounts

South Africa: launched ID verification - a key product enhancement to improve Trust

Q3 financial performance

Uvashni Raman, CFO

Group | Continued growth in revenue and ramp-up in marketing investment and new product development

Revenues EBITDA

Revenues up 6% yoy to €386m (excl disposals)

Online classifieds revenues up 6% yoy (of which 1% from transactional revenues)

Display advertising revenues down 3% yoy

EBITDA margin at 33%

EBITDA down -7% yoy to €127m

Revenue growth offset by anticipated increase in marketing investment and product development to drive growth acceleration

Capacity build-up to prepare for TSA exits and ahead of synergies

All numbers with a consolidated view (JVs that are not 100% consolidated are not included)

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 and are unaudited.

All comments on financial performance refer to combined information, unless stated otherwise

France | Continued growth in revenues and anticipated softening of EBITDA margin

Revenues

Continued growth in revenues, up 7% yoy excluding changes in accounting policy.

Underlying growth of 16%¹ compared to Q3 2019

Classifieds revenues up 10% yoy driven by Real Estate and Motors (positive ARPA development) and by transactional services up 27%¹ vs Q32019

Display advertising down 2% yoy impacted by demand decrease and reduced inventory

EBITDA margin

Slight margin softening (down 1.4pp) despite revenue growth, mainly attributable to:

• Expected increasing personnel costs (P&T) due to ramp-up in product development
• Increasing share of transactional services

Sequential improvement vs. Q2 2021

1 : Excluding the impact of change in accounting policy and the contribution from L'Argus

2 : Excluding changes in accounting policy

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 and are unaudited.

Mobile.de | Resilient performance despite challenging market environment

Revenues

Decrease in EBITDA margin driven by topline evolution and by increase in marketing spending (still 14% below Q3 2019 level) and in personnel costs to accelerate product development

European Markets | Double digit growth in revenue driven by eBay K and Spain

Revenues

Strong growth in revenue, up 11% yoy

Revenues from Classifieds (including transactional revenues) up 13% yoy and Display Advertising up 7% yoy

Strong performance with double-digit growth of eBay K, Spain, Italy and Ireland

EBITDA margin

Margin down 6.5pp yoy (and down 2.8pp vs. Q3 2019) driven by:

• Increased investment in marketing and P&T, notably in Spain, Italy and eBay K, to reinforce our positions after several quarters of costs savings initiative in the covid context
• Marketing campaigns following the launch of our transactional services to drive user adoption (eg: TuttoSubito in Italy)

Willhaben not included

European Markets | Strong double digit performance in 75% of the portfolio

International Markets | Performance impacted by advertising revenue contraction

Revenues

Revenues down 4% yoy

Classified revenues up 2% yoy, driven by Australia

Advertising revenue down 13% yoy, mainly due to Canada and Australia

EBITDA margin

Down 5.6pp yoy, due to:

• decrease in advertising revenues
• increased marketing spending in Australia and Mexico

OLX not included

* Q3 2020 IFRS EBITDA - International Markets: €(0)m

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 and are unaudited.

OLX Brazil| Strong performance driven by Grupo Zap acquisition and continued investment in talent and marketing

Revenues

		Revenue & EBITDA margin
OLX Brasil up 116% in local currency including Grupo ZAP (+31% yoy on a comparable basis)
Strong performance in Motors and Real Estate	+116%1 €33m
Continued momentum in transactional services
		€15m

EBITDA margin

Slight margin softening due to continued investment in product & technology and marketing

25.1% 23.4%

EBITDA deterioration by €3m mainly due to :

• Build up of capacity to prepare for eBay TSA exits
• Different phasing in third-party services

Other P&L items (reported view)

• €(50)m yoy increase in depreciation and amortisation, due to the amortization of eCG intangible assets (PPA) for €(44)m 1
• Main amounts related to Mobile.de, eBay K, Marktplaats and Canada

Other expenses included: 2

• Acquisition-related costs for €(14)m in Q3 2021(vs. €(24)m in Q3 2020)
• Integration-related costs for €(6)m in Q3 2021(vs. €(1)m in Q3 2020)

Net financial items included: 3

• Net interests expenses for €(18) related to the new financing in Q3 2021 (vs. €(1)m in Q3 2020)
• Net foreign exchange loss for €(10)m in Q3 2021 (vs. €(24)m in Q3 2020)

	Third quarter
€ million	2021	2020 reported
Gross operating profit (loss) = EBITDA		54
1 Depreciation and amortisation	(64)	(15)
Share of profit (loss) of joint ventures and associates	(1)	(1)
Impairment loss	-	-
2 Other income and expenses	(18)	(25)
Operating profit (loss)	43	14
3 Net financial items	(30)	(26)
Profit (loss) before taxes	14	(13)
Taxes	(12)	(15)
Profit (loss)	2	(28)

Total cash position of €232m¹ at the end of September

Refinancing with Senior Secure Notes (€1,060m) & Institutional Term Loans (\$506m and €900m) have become effective at closing of the eCG acquisition

Drawdown of €150m from €450m Revolving Credit Facility on 24 June 2021

Senior Secured Net Leverage Ratio of 4.0x at the end of September²

Medium-term target leverage ratio: 2x to 3x

1 Includes Restricted Cash of €8m 2 Based on the definition of the Facilities Agreement, before synergies. Net leverage ratio (including leases) of 4.2x as of Q3 2021 21

Outlook

Rolv Erik Ryssdal, CEO

Long-term value creation opportunity To be outlined at our Capital Markets Day

• Core Markets mid-to-long term targets
• c.15% average annual revenue growth
• 40-45% EBITDA margin
• €130m annual run-rate synergy impact on EBITDA¹
• Expected revenue growth acceleration in Q4, excluding mobile.de
• Low double-digit Core Markets revenue growth expected in 2022
• Short-term supply pressure in motors to continue in 2022 but mitigated by price increases, leading positions and high value-added products
• Gradual recovery in Motors market expected in H2 2022
• Continued investment in Core Markets to capture long-term growth opportunities

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Basic information

Ticker
Oslo Stock Exchange Reuters Bloomberg	ADE ADE.OL ADE:NO
Number of shares	1,224,942,981
Treasury shares (November 24, 2021)	1,367,750
Number of shares outstanding	1,223,575,231
Free float*	22.7%
Share price (November 24, 2021)	NOK 143.10
Average daily trading volume (shares)**	377,790
Market Cap total (November 24, 2021)	NOK 175.1bn (USD 19.5bn)

* Total number of shares excluding treasury shares and shares owned by Schibsted ASA, eBay Inc and Permira

^** Past hundred days on the Oslo Stock Exchange

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