Adevinta — Investor Presentation 2023

Nov 21, 2023

Q3 2023 Results

Antoine Jouteau, CEO Elisabeth Peyraube, CFO

21 November 2023

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Highlights of the quarter Antoine Jouteau, CEO

Key highlights of the quarter Continued delivery of our Growing at Scale strategy

Strong Q3 2023 financial performance in soft market environment

Strong double digit revenue growth of Core markets: +14% yoy, driven by continued outstanding performance of mobile.de

Total consolidated EBITDA of €171m, up 29% yoy

EBITDA margin of 37.6%, up 5pp yoy, benefitting from operating leverage and favourable phasing of expenses

Strong cash flow generation and further deleveraging

2023 targets confirmed

Progress on optimised organisation driving scale benefit

Business integration on track, with further roll out of new operating models for support functions and synergy targets confirmed

Verticalisation¹ of Adevinta's operations ongoing, with organisational design approved by employee representatives

Good progress on platform convergence, with achievement of first key milestone

Operational excellence to generate profitable growth

Increased monetisation in Mobility and Real Estate with higher client penetration and successful price increases along with product improvements and increased added-value for customers

Strong ramp-up of transactional

services, with transactions up +33%, with strong traction in all Core markets

Continued product development across all of our platforms

Continued financial discipline

Continued innovation with added-value products across all markets To reinforce our leadership positions

Mobility		Real Estate		Transactional services
Inspirational car recommendations	Advanced electric vehicle search	Rental management offer	Search by travel time	Split payment	DHL Home

Positive traffic growth at leboncoin and mobile.de in line with market trends Kleinanzeigen's traffic flat despite rebranding

Car PRO listings up mainly due to low comparison levels Strong value proposition reflected in successful commercial activity

leboncoin	-1%
mobile.de	+5%

Listings: Average number of dealer live listings - internal data

Monetisation and client base evolution
	Monetisation	Dealers
leboncoin	ARPD: 495€ +20% yoy	22k -1% yoy
mobile.de	ARPL: 24€ +10% yoy	40k 0% yoy

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

Real Estate PRO listings up driven by lower demand for properties Strong value proposition driving ARPA and client penetration up

	Q3 qoq
leboncoin	+0%
Kleinanzeigen	+10%

ARPA and customer evolution
	ARPA	Customers
leboncoin	690€ +21% yoy	21k -5% yoy
Kleinanzeigen	130€ +22% yoy	10k +13% yoy

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

Listings: Average number of agents live listings - internal data

Continued rapid scaling of our transactional services Supported by recent product launches and promotional activities

Successful promotional activities in Q3, on the occasion of the "back to school" period, with positive impact on # of transactions and adoption

● All-time high number of payins in Italy and Spain achieved in September

Continued strong development of transactional business model in

France, with positive impact on the margin

New products and innovation in all markets

Transactions Q3 2023 September 2023 LTM vs September 2022 LTM Number of payouts (evolution in %)

leboncoin +31% yoy +33% yoy

Kleinanzeigen +82% yoy +116% yoy

Payouts: payments made to sellers following a successful transaction

Q3 2023 financial performance

Elisabeth Peyraube, CFO

Group | Continued strong double-digit revenue growth in our core business

Group revenues at €454m, up 12% year-on-year (excl. disposals)

Core markets revenues up 14% yoy

Classifieds revenues up 17%

• Mobility up 24% yoy, driven by mobile.de
• Real Estate up +11%, driven by France and Kleinanzeigen
• Jobs flat yoy

Transactional revenues up 51% yoy

● Double digit revenue growth in all markets

Advertising revenues down 6%

● Overall weaker advertising market

Group | Improved EBITDA margin benefiting from topline development and favourable phasing of expenses, despite business mix evolution

Lower marketing spend across markets, down 20% yoy, driven by different phasing, spend discipline and prioritisation across all markets

Favourable spread of expenses, with some catch-up expected in Q4 2023

French DST catch-up of €(6)m in Q3 2022

Higher personnel costs, driven by :

• Continued build-up of global capabilities with the implementation of new operating models for support functions and Product and Technology teams
• Continued investment in product enhancements and in sales and customer support operations
• Partly offset by slightly higher capitalisation related to convergence project and harmonisation of capex policy

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

France Acceleration in revenue growth Margin reflecting increase in personnel costs and business mix evolution

Revenues

Acceleration of revenue growth, up 12% yoy

Classifieds revenues up 13% yoy, driven by Real Estate and Mobility, benefitting from supply recovery and monetisation initiatives:

• Positive ARPA evolution (+21% yoy) in Real Estate
• Positive development in ARPD (+20% yoy) in Mobility

Strong growth in transactional revenues, up 34% yoy, driven by transaction volume growth

Advertising revenues down 9% yoy, impacted by reduced activity from media agencies and programmatic

EBITDA margin Stable margin year-on-year:

● Topline evolution

• Lower marketing expense
• Catch-up provision of €(6)m related to the French DST in Q3 2023
• Offset by:
• Higher personnel expenses, due to investments in product and technology development
• Higher direct transaction costs, driven by higher transaction volumes
• Business mix evolution: increasing share of transactional services (-0.9pp dilutive impact from direct transactional costs) and decreasing share of highly profitable advertising revenue

Reported EBITDA at €59m, up €7m (+13%) yoy

mobile.de Outstanding revenue growth and profitability

Revenues

Outstanding revenue growth, up 26%

Classified revenues up 29% yoy:

• Continued recovery in dealer listings (+20% yoy)
• Increase in ARPL, up 10% yoy, driven by the successful price increase in April, in combination with increasing value for customers, and strong performance in upselling
• Strong performance of revenues from private sellers

Advertising revenues down 4% yoy due to market headwind and lower OEM spend

EBITDA margin

Margin improvement (up 6.5pp yoy) mainly driven by:

• Topline evolution
• Operating leverage
• Lower marketing expenses
• Partly offset by:
• Higher personnel expenses, as a result of the annualisation of our investments in product enhancements and in sales and customers support operations

Reported EBITDA at €65m, up €19m (+41%) yoy

European Markets Double-digit revenue growth and improved margin despite unfavourable business mix evolution

Revenues

Up 10%* yoy

Strong performance of Classifieds, up 13%* yoy, driven by double-digit growth in Mobility and Consumer Goods

Continued strong momentum from transactions, with revenues doubling

Advertising revenues, down 5%* yoy, driven by weak economic context

EBITDA margin

Margin improvement (up 2pp yoy) mainly driven by:

• Topline evolution
• Lower marketing spend driven by different phasing, spend discipline and prioritisation Partly offset by:
• Increase in transactional costs, led by higher volumes and by shipping promotional campaigns to drive adoption of the service

Reported EBITDA at €83m, up €11m yoy (+15%)

Solid revenue performance, supported by double-digit growth

Revenue split by market (Q3 2023)

Revenues up (+6% yoy) - strong performance in Online Classifieds, driven by Real Estate, Mobility and Consumer Goods. Advertising revenues down due to weaker market environment. Strong performance from Transactional revenues

Revenues up (+5% yoy) - solid performance of online classifieds, supported by Mobility, Consumer Goods and Jobs,Mobility and Jobs. Real-Estate and Advertising revenues down, impacted by macroeconomic context and lower vibrancy, respectively

Double-digit revenue growth (+18% yoy) - strong growth in Online Classifieds, driven by Mobility and Consumer Goods, and in transactional services, pushed by recent product launches. Advertising revenues down

Double-digit revenue growth (+20% yoy) - strong growth in Mobility and Consumer Goods. Continued strong momentum of transactional services. Double-digit growth in Advertising

Revenues impacted by vibrancy contraction Margin improvement driven by lower marketing spending and other cost optimisations

International markets (Canada) down 21%* yoy, driven by currency impact (-9 pts) and contraction in vibrancy impacting both online classifieds and Advertising performance

EBITDA margin

• Margin improvement (up 1.2pp yoy), mainly driven by:
• Lower marketing expenses
• Other cost optimisations to absorb revenue decline
• Exit of non-core operations
• [One-off benefit of past expenses reclassification]

Reported EBITDA at €11m, down €3m (-23%) yoy

OLX Brasil Revenue growth impacted by economic environment Improved profitability driven by lower marketing spend and cost reduction plan

Revenues

Up 1% in local currency

Growth in Mobility and Consumer Goods, partly offset by soft performance in Real-Estate, impacted by market headwinds

Solid growth from transactional revenues, driven by higher volumes

Advertising revenues down impacted by weaker macro-environment

EBITDA margin

Strong margin improvement (up 11pp yoy) mainly driven by:

• Reduction in marketing spending, mainly on ZAP+ branding and performance
• Lower personnel expenses, due to the implementation of a cost reduction plan without compromising operations
• Other OPEX optimisations

EBITDA at €13m, up €5m (+60%)yoy

EBITDA up €6m yoy

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

More than offset by:

• Favourable quarterly phasing of IT expense
• ● Larger share of cost allocations to the markets to reflect global teams support

Central P&T & HQ costs down yoy as % of revenues, at 10%

Other P&L items

	Third quarter
€ million	2023	2022
Gross operating profit (loss) = EBITDA		132
Depreciation and amortisation	(76)	(82)
Share of profit (loss) of joint ventures and associates	(3)	(5)
Other income and expenses	(30)	(83)
Operating profit (loss)		(38)
Net financial items	(21)	(10)
Profit (loss) before taxes	41	(48)
Taxes	(1)	(2)
Profit (loss)	40	(52)
Profit (loss) from continuing operations	40	(50)
Profit (loss) from discontinued operations	-	(2)

Depreciation and amortisation costs down €6m yoy, driven by the reassessment of useful lives of certain trademarks in Q3 2022

Share of loss of joint ventures and associates down €2m yoy, due to improved results of OLX Brazil

Other expenses mainly includes expenses related to:

• the eCG integration
• the verticalisation project
• the Kleinanzeigen rebranding

Partly offset by gain on sale of Hungary

Net financial costs up €(11)m yoy, mainly due to the exchange loss on the loan in BRL granted by Adevinta to OLX Brazil (depreciation of BRL against EUR)

Strong cash flow generation profile

Slight positive change in working capital, non cash items and provisions

Capex

• Essentially capitalised development costs (€22m)
• c. 6% of sales
• Up yoy due to:
• ○ Convergence project
• ○ Integration projects (eg cloud and ERP migration)
• ○ Harmonisation of capex policy across the group

Cash flow generation broadly stable yoy

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

Deleveraging continues to be a priority

Q3 2023 Net interest-bearing debt build-up

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

1 Based on the definition of the Facilities Agreement 2 Additional €3m amortization on USD TLB

Senior Secured Net Leverage Ratio of 2.7x as of Q3 20231

Medium term target: towards 2x net debt/EBITDA

€301m² debt repayments during 2023:

• €204m debt repayment in H1 (€104m on USD TLB and €100m on EUR TLB)
• €94m debt repayment in Q3 (€74m on USD TLB and €20m on EUR TLB)

Leverage development and long-term debt maturity

Deleveraging progressing well in line with management's commitment

€450m undrawn revolving credit facility maturing in 2026

Measures in place to mitigate Interest Rate & FX Exposures

Interest expense remains broadly flat, despite rising interest rates

• Exposure to rising interest rates mitigated by:
• Deleveraging
• USD TLB swapped to Euro Fixed until mid 2024
• Fixed debt profile of c. 70%
• Floating debt exposed to EURIBOR

Deleveraging and hedging has resulted in interest savings of €36m in 2023 to date

Manageable FX exposures

• Material transactional exposures 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

2023 outlook confirmed

2023 outlook

• Double digit revenue growth in core Markets despite soft macro environment
• EBITDA at the top end of the previously announced €620m to €650m range
• Further deleveraging expected, towards 2x net debt/EBITDA in the medium term

Value creation opportunity ahead of us Long-term ambition remains strong for Core markets

Sustainable profitable growth underpinned by

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

Long-term ambition

• 2023-2026 annual revenue growth between 11% and 15%
• ● 2026 EBITDA margin between 40% and 45%

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 (Nov 20, 2023)	6,759,758
Number of shares outstanding	1,218,183,223
Free float*	27.1%
Share price (Nov 20, 2023)	NOK 107.7
Average daily trading volume (shares)**	764,528
Market Cap total (Nov 20, 2023)	NOK 131.2bn (USD 12.3bn)

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ir@adevinta.com

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