Q2 2020 Results Rolv Erik Ryssdal, CEO Uvashni Raman, CFO 16 July 2020 Creating perfect matches on the world’s most trusted marketplaces
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Introduction Rolv Erik Ryssdal CEO
Q2 performance demonstrates the resilience of our business model and agility of the operations ● Stronger-than-expected recovery , especially in France ● Operational KPIs improving across all markets throughout Q2 ● EBITDA outperformance despite significant drop in revenues and sustained level of investment ● Favorable consumer trends and opportunities arising from the crisis, though further uncertainty ahead ● Full speed in product & tech and transactional shift to improve offering and strengthen leading positions ● Strong financial position ● Continued portfolio review 4
Recovery underway in all segments But Q2 financial performance heavily impacted by Covid-19 as expected Operational KPIs (100 indexed) Revenues EBITDA Visits Negative impact of Covid-19 Group-wide successful cost Revenue trends in saving initiatives to protect classifieds improving month short-term profitability by month in all segments Sustained level of investment Advertising revenues still in product & tech to drive future under pressure, albeit growth and improve efficiency Leads improving Expected dilutive impact of acquisitions and set up of France back to positive corporate functions organic growth in June Positive one-offs in HQ & others Source: Adevinta estimates 5 All numbers on a proportionate basis incl JVs
Accelerated trends support long-term growth of online classifieds ● Accelerated digital penetration and digital transformation for professional clients Expectations for more convenient digital user journey and higher ● level of trust and safety ● Generalisation of transactional solutions adoption ● Shift towards more local, more sustainable ways of consuming, with increasing appetite for second-hand products Expectations for more efficient solutions for professional clients to ● advertise products and services ● Evolving operating models for professional clients` 6 6
We continued to invest in Product and Technology to drive future growth and operational efficiency New products, features and offerings Common infrastructure 7
We focused on actively supporting our clients to restart activity Continued tailored Extension of contract Unlimited volume of ad Discounts limited to commercial strategy with duration listing in verticals specific segments progressive return to as from May pre-Covid ARPU 8
Enhanced focus on our large markets with leading positions Exploring further portfolio optimizations and large scale consolidation Deepen and expand our leading Manage our Explore larger scale positions in our largest markets Global Markets portfolio consolidation opportunities ● In-market consolidation ● Do more in markets where we ● Leading positions and growth already have strong positions potential Grupo Zap ● Portfolio optimization in other ● Strategic fit and complementarity ● Value chain expansion markets: divestiture of Corotos Shared values and purpose ● L ’Argus and Jobisjob (Dominican Republic) ● Operational know-how and ● Entering new markets in existing Explore adjacent opportunities in ● technological synergies geographies Europe ● Scalability, shared data Locasun and Pilgo Track record of strong financial discipline 9
Q2 business review Rolv Erik Ryssdal CEO
France: stronger-than expected recovery Lockdown ended on 11 May Customer relationship management with progressive lifting of restrictive measures ● Improving momentum since before end of the lockdown ● Professional clients supported by governmental measures ● Absolute traffic records reached several times ● No further discount granted from June since the end of the lockdown Strong support to restart activity ● Leads above pre-Covid and last year’s levels, (product feature release, extension of ad listing in cars and ● especially in cars and real estate real estate, free listing for very small companies in jobs) ● New listings closing the gap ● Deferral of payment ● High customer loyalty and reinforced positions 11
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