Allegro.eu S.A. — Earnings Release 2022

Nov 28, 2022

Date: 28 November 2022

Current report No. 39/2022

Title: Information about the results of an impairment test of the assetsof Mall Group a.s. and WE|DO CZ s.r.o.

Legal basis: Article 17 of MAR - inside information

The Board of Directors of Allegro.eu (the _quot;Board_quot; and the "Company",accordingly) hereby informs about the results of an impairment test ofthe assets of Mall Group a.s. and WE|DO CZ s.r.o. The result of theimpairment test was finalized on 28 November 2022 during a BoardMeeting. The Board accepted modifications to the original investmentplan for Mall Group a.s. and We|Do CZ s.r.o. acquisition and a resultingrevised valuation. In turn the Board then accepted the result of theimpairment test for inclusion in the Group's Condensed ConsolidatedFinancial Statements for the third quarter of 2022.

The impairment test was performed in accordance with InternationalAccounting Standards and compared a financial projection estimating thefair value of Mall Group and WE|DO, less costs to sell, as at 30September 2022 with the carrying amount of Mall Group and WE|DO, whichstood at PLN 4,072 million, and resulted in the Group recognizing anon-cash impairment charge of PLN 2,293.0 million. This impairment losswill be fully allocated to Goodwill and will be presented in the InterimCondensed Consolidated Statement of Comprehensive Income for the thirdquarter of 2022 in the expense line _#8216;Impairment losses of non-currentnon-financial assets'.

The impairment will reduce the net income of the Group in the thirdquarter of 2022. In contrast, it will not have an effect on earningsbefore interest, tax, depreciation, amortization and impairment lossesof non-current non-financial assets (_quot;EBITDA_quot;). Neither does it affectthe Group cash flow generation. This accounting event does not have anyimpact on the stability of Allegro's business, nor the businesspriorities - including the launch of Allegro's 3P marketplace in Czechiaand other Mall markets.

The Board acknowledges that it agreed a full price in November 2021 toobtain a scarce asset to facilitate Allegro's transformation into aninternational business and that, in hindsight, that price was set at thetop of the market cycle, since when many traded peer e-commercecompanies have lost 50-70% of their market value. In the meantimeinflation and the cost of living crisis has led Mall and WE|DO tosignificantly underperform original expectations for its financialperformance. Rising inflation and borrowing costs have caused the costof equity to move up considerably, reducing the present value of thelong term cash flows projected to be generated from these Allegromarketplace deployments.

Despite this very significant set-back, the Company remains fullycommitted to delivering the strategic value of a successful outcomewhereby the Allegro 3P marketplace becomes a meaningful player inCentral European e-commerce. Thus creating a combined multi-country3P/1P capability and playbook which, after a successful launch in eachof Mall's key markets, can be rolled out organically into additionalmarkets in future years and providing a key driver for future growth.

The impairment test result will be included in the Group consolidatedquarterly report for the third quarter of 2022 which will be publishedon 30 November 2022.

Allegro.eu is a Luxembourg public limited liability company (soci_#233;t_#233;anonyme), registered office: 1, rue Hildegard von Bingen, L - 1282Luxembourg, Grand Duchy of Luxembourg, R.C.S. Luxembourg: B214830.