Adevinta — Investor Presentation 2023

Feb 23, 2023

Q4 2022 Results

Antoine Jouteau, CEO Uvashni Raman, CFO

23 February 2023

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Highlights of the quarter Antoine Jouteau, CEO

2022 achievements Delivering on our financial targets

2022 financial targets	A strong 2022 financial performance
Low double-digit revenue growth in Core markets	● Core markets revenue growth of 10% ● Total revenues up 8%, at €1,644m
Underlying EBITDA in the range of €575m to €600m	Underlying EBITDA1 ● of €579m including the €(12)m impact of the French DST ● Reported EBITDA of €548m with 33.3% margin and exit margin of 33.6%
Synergy target of c.€35m run rate EBITDA impact	● More than €35m of run-rate synergies delivered
Deleveraging	Strong cash flow generation2 ● of €437m ● c. €320m debt repaid

All FY2022 targets achieved despite market headwinds

2022 achievements Delivering on our strategic targets

Optimised organisation

Portfolio optimisation review completed, with launch of sale process for Hungary

Business integration on track, with main milestones implemented in 2022 (major systems rollouts, exit of TSAs, new operating models in support functions…)

New vertical responsibilities and leadership team as of January 1st, 2023

Discussions and workshops initiated with the project team, functional experts and senior management to design the future vertical organisation

Operational excellence

Increased monetization in Mobility and

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

Continued product development across all of our platforms: OB&S at Mobile.de, wallet and instalment solutions at leboncoin…

Strong ramp-up of transactional

services, with transactions up +26%, full deployment of shipping and payments solutions in all Core markets, France break-even at year end

Financial discipline instilled

Sustainability

Data collection process in place to support establishment of the 2023 baseline in order to set GHG emissions targets for FY 2024

Building of a strong inclusive culture, with the roll-out of our Inclusive Leadership programme, the organisation of Adevinta 4 Everyone global campaigns, the launch of our Allyship workshop and a gender audit

Establishment of a Global Cyber Security Program ensuring the confidentiality, integrity and availability of all IT systems & data while ensuring regulatory compliance across all marketplaces

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

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

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

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

Car PRO listings back to growth at Mobile.de Our strong value proposition is reflected in successful commercial activity

Price and client base evolution
	Price	Dealers
leboncoin	ARPA: 425€ +18% yoy	23k -7% yoy
Mobile.de	ARPL: 22€ +14% yoy	40k -2% yoy

	Q4 qoq
leboncoin	+7%
Mobile.de	+5%

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

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

ARPA and customer evolution
	ARPA	Customers
leboncoin	575€ +8% yoy	20k -3% yoy
eBay Kleinanzeigen	110€ +1% yoy	9k +20% 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

Increasing traction in all Core markets, with triple-digit growth in less mature markets

Successful promotional activities in Q4, taking advantage of key events: Circular Monday, football World Cup, Christmas…

Strong development of transactional business model in France

Continued scaling and product improvements at eBay Kleinanzeigen with focus on Buy Now option and integrated shipping with DHL

Benelux, Italy and Spain growing month after month, supported by new products and innovation:

• DHL as new shipping carrier at Marktplaats
• Relevance ranking for market categories at Subito
• Introduction of "confirm receipt" button and Vouchers at Milanuncios

Transactions
Number of payouts (evolution in %)
Q4 2022	2022
+27% yoy	+33% yoy
+149% yoy	+154% yoy

Payouts: payments made to sellers following a successful transaction

Strong development of transactional business model in France

New all time high for transactions

• New transaction¹ record reached in Q4 2022 (+27% yoy) with 50% less promoted days than last year
• Transaction level benefitting from the launch of wallet solution, already representing 7% of transactions in Q4 2022
• leboncoin in the TOP 3 e-commerce² in France during our November promotion
• C. 1/3 of leboncoin's active users have already used the transactional solution

Strong AOV increase, +16% yoy

Driven by:

• Switch from 400€ to 1,000€ eligibility for shipping implemented in June
• Successful launch of instalment solution in October, already representing 10% of transactions3 at the end of Q4

Continuous improvement of profitability; break even⁴ at the end of the year

• Reduced payment costs thanks to wallet solution
• Deployment of enhanced version of parcel weight prediction algorithm in October

January 2023 developments, with expected positive impact on profitability

• 4% buyer fee for purchases in Fashion categories
• Switch from 1,000€ to 2,000€ eligibility for shipping implemented

Transactional KPIs (Consumer Goods C2C)
	Q4 2022
Transactions1	+27% yoy
AOV5	47€ +16% yoy
Transaction adoption rate (nb of payouts / nb of new ads)	10% +2pts yoy

¹ Based on confirmed online payments (payouts)

² Based on Fox Intelligence volume data (19th & 20th November 2022)

³ On eligible price range

⁴ Operating margin = operating margin for transactional consumer goods services excluding an allocated share of overall platform marketing spend,

but including other Direct costs such people P&T, customer service, and 3rd party costs such as shipping and payment service provider costs 5 Average Order Value - Net of payment commission and shipping fees

Q4 2022 financial performance

Uvashni Raman, CFO

Group | Further strong Core Markets revenue growth in Q4 2022

+11% Core markets revenue up 13% yoy

Acceleration of Classifieds revenues growth, up 15%

• Mobility up 19% yoy, driven by Mobile.de
• Real Estate up +9%
• Jobs up 5% yoy

Transactional revenues up 60% yoy

● Especially in France (+50%) and eBay Kleinanzeigen (+137%)

Advertising revenues down 5%

● Lower market environment and OEM spend

Group | Improved EBITDA margin despite business mix evolution and DST impact, benefiting from cost management and lower SBC

Reported EBITDA up 16% year-on-year to €145m EBITDA margin of 33.6%, up 2pp vs Q4 2021

Reduction of marketing investment driven by different phasing, spend discipline and prioritisation

Lower share-based compensation impact

Increase in personnel costs:

• Continued build-up of global capabilities with 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

EBITDA margin, excluding DST of 34.2% Underlying EBITDA¹ margin of 34.6%

France Solid revenue growth and resilient margin despite unfavorable mix evolution and DST impact

Revenues

Solid revenue growth, up 9% yoy

Classifieds revenues up 6% yoy driven by healthy growth in PRO, partly offset by volume-driven revenue streams:

• Positive ARPA evolution (+8% yoy) in Real Estate
• Positive development in ARPD (+18% yoy) in Mobility

Strong growth in transactional revenues, up 50% yoy, driven by transaction volume growth and AOV increase

Advertising revenues down 2% yoy, impacted by reduced activity from media agencies and programmatic

EBITDA margin

• Margin softening (down 2.5pp). Topline evolution partly offset by:
• French DST provision (€3m)
• Increasing share of transactional services
• Increased in personnel due to continued investment in P&T development and one-off inflation bonus

Reported EBITDA at €54m, up €1m (+3%) yoy

EBITDA, excluding DST, up +8% yoy with broadly stable margin

Mobile.de Very strong revenue growth and profitability

Revenues

Outstanding revenue growth, up 24% compared to low Q4 2021

Classified revenues up 29%:

• Recovery in dealer listings (+9% yoy)
• Increase in ARPL, up 14% yoy, driven one by successful price increase, in combination with increasing value for customers
• Higher revenues from private sellers

Advertising revenues down 7% yoy due to market headwind and lower OEM spend

EBITDA margin

Margin improvement (up 4pp yoy and up 2.1pp qoq) mainly driven by:

• Topline evolution
• Lower marketing expenses

Partly offset by:

● Higher personnel expenses to support new business initiatives and product launches (eg: online buying & selling and leasing)

Reported EBITDA at €50m, up €13m (+34%) yoy

European Markets Solid revenue growth and resilient margin despite higher personnel expenses and business mix evolution

Revenues

Up 9%* yoy

Strong performance of Classifieds, up 15%* yoy, driven by growth in all verticals

Continued strong traction from transactions, with revenues almost x2 yoy

Advertising revenues down 6%* yoy, mostly due to economic uncertainty leading to lower spending by advertisers.

ebay Kleinanzeigen advertising performance stronger than the overall German market

Strong performance at eBay Kleinanzeigen (+11% yoy), in Spain (+9% yoy) and Italy (+13% yoy)

EBITDA margin

Resilient margin (up 0.1pp 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

Reported EBITDA at €77m, up €6m yoy (+9%*)

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

Revenue split by market (Q4 2022)

Double-digit revenue growth (+11% yoy) - significant momentum in Consumer Goods, with strong SMBs performance, as well as in Real Estate and Mobility. Decline in advertising revenues due to a weaker global market environment. Transactional revenues more than x2

High single-digit revenue growth (+9% yoy) - strong performance in the three verticals: Jobs (+14% yoy), while higher comps, Real Estate and Mobility. Advertising revenues up, driven by new client acquisition

Revenues back to growth (+4 yoy) - growth in online classifieds and transactional services, pushed by promotional shipping campaigns and new shipping carrier (DHL), partly offset by lower advertising revenues

Double-digit revenue growth (+13% yoy) - strong performance in Mobility and Consumer Goods and strong momentum of transactional services

International Markets Performance impacted by advertising revenue contraction, partly offset by lower marketing spending

Down 9%* yoy

Canada classified revenues up 1% yoy, led by in Mobility which benefiting from subscription growth

Canada advertising revenue down 27% yoy, driven by continued vibrancy pressure and soft direct display revenues

EBITDA margin

Margin improvement (up 10.0pp yoy), mainly driven by:

• Mexico exit
• Lower marketing costs (down 47%* yoy) Partly offset by:
• Topline evolution
• Higher personnel costs

Reported EBITDA at €12m, up €1m yoy

OLX Brasil Soft revenue growth due to political and economic environment Cost reduction plan implemented, without compromising operations

Revenues

Up 5% in local currency

Softer revenue growth in Mobility and Real Estate in an uncertain political and macro-economic context (national election, higher interest rates…)

Transactional revenues 2x yoy

Advertising revenues impacted by lower traffic and weaker macro-environment

EBITDA margin

Margin improvement (up 7pp yoy), maily driven by:

• Topline evolution and negative mix impact
• A strong reduction in marketing spending, mainly on ZAP+ branding and performance
• Lower personnel expenses, down 13% yoy, due to the implementation of a cost reduction plan

EBITDA at €5m, up 137%* yoy

EBITDA flat 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

Offset by larger share of cost allocations to the markets to reflect global teams support and lower share-based compensation

Central P&T & HQ costs down yoy as % of revenues, at 11%

Other P&L items

	Fourth quarter
€ million	2022	2021
Gross operating profit (loss) = EBITDA	145	124
Depreciation and amortisation	(82)	(64)
Share of profit (loss) of joint ventures and associates	(18)	-
Impairment loss	(1,722)	(2)
Other income and expenses	(14)	(25)
Operating profit (loss)	(1,691)	33
Net financial items	(35)	(28)
Profit (loss) before taxes	(1,726)	5
Taxes	1	16
Profit (loss)	(1,754)	27
Profit (loss) from continuing operations	(1,725)	21
Profit (loss) from discontinued operations	(29)	6

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

Share of loss of joint venture and associates up €(18)m mainly driven by lower results in Brazil (decrease in deferred tax assets)

Impairment loss of €1,722m. See details in next slide

Other expenses mainly includes integration expenses related to the eCG acquisition

Net financial costs up €(7)m mainly due to a foreign exchange loss on the loan in BRL issued by Adevinta to OLX Brazil

Tax income mainly reflects the decrease in deferred tax liabilities due to the impairment of intangible assets, partially offset by derecognition of deferred tax assets in the Dutch tax group

Impairments

€1.7bn impairment loss to the book value of eCG assets and Hungary reflecting:

• Global increases in WACC, led by macroeconomic uncertainties and increasing inflation in 2022 which have triggered a significant increase in market interest rates and equity risk premiums
• ● High share-price driven book value at closing of eCG transaction (+48% vs signing price)
• ● More conservative expected growth trajectory in Canada and Hungary

Offset by better mid-long term business outlook for German assets

€ million	Goodwill	Trademarks, indefinite	Total
Canada	(574)	(228)	(802)
eBay Kleinanzeigen	(489)	-	(489)
Mobile.de	(411)	-	(411)
Hungary	(17)	-	(17)

Strong cash flow generation profile

Change in working capital, non cash items and provisions broadly stable

● Including DST payment related to 2022

Capex

• Essentially capitalised development costs
• c. 6% of sales

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

Deleveraging: a priority

Q4 2022 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 0,25% quarterly amortization as per Facilities Agreement

*

Senior Secured Net Leverage Ratio of 3.5x as of Q4 2022¹

Leverage reduced to below 3x net debt/EBITDA by the end of 2023

Close to €320m debt repayment in 2022

• €75m RCF repayment in Q1
• €75m RCF repayment in Q2
• €90m Term loan B EUR repayment in Q3
• €75m Term loan B EUR repayment in Q4
• €4m Term loan B USD repayment Q1-Q42

Cash efficiency and long-term debt maturity

Reduction in operational cash requirements benefiting from cash optimisation measures (c. €(50)m in 2022), allowing to operate at much lower cash levels

Ba3 rating and stable outlook confirmed by Moody's in January 2023

Measures in place to mitigate Interest Rate & FX exposures

Interest Rate Exposures

• Floating/Total Debt Ratio of 33% in Q4
• USD TLB: hedged until June 2024
• EUR TLB: exposed to floating rates
• Deleveraging: priority given to floating debt

Deleveraging measures and hedging allowed savings in interest expense of €17m in 2022

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

2023 outlook

2023 outlook 2023 drivers

Low double digit revenue growth in core Markets despite soft macro environment

Reported EBITDA, including French DST, in the range of €620m to €650m, implying yoy improvement in EBITDA margin despite unfavourable mix evolution

Leverage reduced to below 3x net debt/EBITDA by year end

• Further room for price adjustments based on product improvements and increased value for our customers
• Continued strong traction of transactional services
• Advertising markets to remain under pressure
• ● Operating leverage & synergies realisation
• Financial discipline
• Business mix evolution
• ● Continued focus on deleveraging and further optimisation of debt structure

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
• 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	ADE ADE.OL
Bloomberg	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 (February 22, 2023)	8,556,946
Number of shares outstanding	1,216,386,035
Free float*	27.0%
Share price (February 22, 2023)	NOK 83
Average daily trading volume (shares)**	1,216,040
Market Cap total (February 22, 2023)	NOK 100.9bn (USD 9.8bn)

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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