Allegro.eu S.A.

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Allegro third quarter 2025 results conference call. At this point, all participants' lines are in listen-only mode. After the presentation, there will be an opportunity to ask questions. So without further ado, I will now pass the line to Tomasz Poźnia, Director of Investor Relations.

Thank you, Rafał, and welcome to all participants of our call. Let me introduce the presenters of today. Mr. Marcin Kuszmierz, the CEO of Allegro Group, who will provide you with the highlights of Allegro performance in Q3 and summarize the key takeaways. And John Istik, our CFO, who will guide you through the financials for Q3 and update of the outlook for the full year 2025. As usual, our results presentation is available for download from our investor webpage at Allegro.eu. You may also download the slides from the link available on the webcast. As a reminder, today's presentation and discussion contains forward-looking statements. Our actual results could differ materially from the expectations expressed in the statements. Please make sure you review the full disclaimer on slide number two. Also, please note this presentation and the Q&A session are being recorded and will be available for a replay on our website at Allegra.eu. And with this, I would like to hand over to our CEO. Marcin, the floor is yours.

Thank you so much for the introduction. I'm Marcin Kuszmierz, CEO of Allegro. I'm very glad to be here with you today to walk through our third quarter results, the key business developments from this period and what we're currently working on across Allegro Group. Let's begin with the highlights of our financial and operating performance. Group GMV rose by close to 10% and in Poland it came very close to 10.5%. What's especially important is that GMV on Allegro in Poland grew more than twice as fast as domestic nominal retail sales. GMV per active buyer also improved strongly, up nearly 6% at the group level and almost 8% in Poland. Strong GNV dynamics, a higher take rate approaching 13% and rapid growth in advertising contributed to an excellent top-line result. Group revenues were up by more than 12% and in Poland they grew by over 20%. The number of active buyers increased by nearly 3% year-on-year to more than 21 million across the group and to over 15 million in Poland. Adjusted EBITDA at the group level grew by an impressive 24%, driven by the outstanding profitability of our Polish operations and reduced losses in our international business. In Poland, we delivered this thanks to strong performance in advertising, financial services and improvements in co-finance. CAPEX increased by 26% year-on-year to almost 230 million Polish zloty as we continued investing in our technology platform and expanding our logistics network and solutions. Financial leverage rose slightly following the successful share buyback in the third quarter of 2025. Let me briefly recap on our medium term strategic assumptions and pillars. We remain fully focused on enhancing our core marketplace and constantly strengthening our value proposition. We are investing in new AI-powered services, developing projects that allow us to expand into new categories and market segments, and improving our presence across Central and Eastern Europe, giving us access to 25 million additional customers. When talking about international business, it is also worth mentioning that we have successfully completed the turnaround of the mall segment. As mentioned at the previous conference, we continue to analyze opportunities in new product and service categories and explore expansion into additional market areas. We are also evaluating the externalization of our financial, advertising and logistics services, potentially making them available to sellers beyond our marketplace. We expect the first test of these projects to begin in early months of the next year. Our loyalty program, one of the most popular in Europe, keeps expanding. Over the past year, we've added more than 1 million new subscribers. We've introduced a wide range of partner benefits, both Polish and international, and we recently announced a partnership with Disney, giving our customers three months of access to Disney+. We constantly work to ensure the best selection, prices and convenience. We continue to attract outstanding brands to our marketplace. For example, in the third quarter alone, we began partnerships with category leaders in home and garden category, such as Homela, Hansgrohe or Gardena. We also launched new tools for brands, including BrandHub, a unified console that makes it easier for brands to manage their presence and activities on Allegro. For business customers, we've introduced Allegro Business, a dedicated platform for SMEs with expansive product selection and new tools such as campaign optimization and automatic currency conversion. At our last conference, we dedicated significant time to discussing artificial intelligence initiatives at Allegro. Today, we're showcasing one of these projects, demonstrating our advanced level of AI commercialization. In our mobile app, we've launched Allegro AI Assistant at this stage for selected users. With its advisory capabilities, it helps customers to find the right products through conventional search. Buyers can specify features, price ranges, or even detailed factors such as warranty length. Using Allegro AI assistance feels very similar to interactive with ChatGPT or Gemini. Customers chat with the platform and instantly respond with the best match products and alternatives. It's worth to mention that Allegro is one of the first marketplaces in the world to offer such functionality, and it will be available for all customers early next year. Our advertising business continues its strong momentum in gaining popularity among servers. In third quarter, advertising revenues grew by nearly 32%, reaching over 2.1% of whole GMV. Our off-Allegro advertising also performed very well. Network PPC spending increased by 60% year-on-year and continues to show strong growth potential. Additionally, in October, we hosted Retail Media Powerhouse, an event that brought together over 300 marketing leaders and demonstrated how to effectively leverage Allegro's retail media capabilities. Our financial services segment is also breaking records. Loan origination rose by nearly 30% year-on-year reaching 3.4 billion PLN. More than 15% of GMV or 2.5 billion PLN was financed through Allegro Pay. This segment continues to grow rapidly and it's strengthening its leadership position quarter after quarter. I'm also delighted to highlight a major development from just a few days ago. Last week, we announced a partnership with PKO BP, Poland's largest bank. Together, we are launching the first services for buyers and sellers. Both companies are key leaders in their segments in Poland and the bank serves over 12 million consumers and nearly 650,000 companies offering the broadest financial services portfolio in the market. These partnerships create exceptional value for customers and will help Allegro accelerate customer acquisition and GMV growth. Thanks to the partnership with PKO BP, in the fourth quarter we will be launching two innovative services that can significantly enhance the attractiveness of our marketplace. The first one is Allegro Click, a new fully integrated payment method for buyers. It enables one-click payments up to 3% cashback and includes a six-month smart subscription for one Polish zloty. For sellers, we are introducing Allegro Capital, easy, fast, fully integrated financing. Entrepreneurs or companies can apply online for loans up to 300,000 zloty and starting next year even higher to a half million Polish zloty. Applications are processed within minutes and payouts are made the same day. Now let's turn to logistics. Our managed volume continues to grow and has surpassed 36%, up 2.4 percentage points compared to the previous quarter. In September, DPD, the second largest logistics operator in Poland, joined Allegro delivery. Since October, it has been fully integrated into our network and steadily increasing its share of Allegro shipments. The Allegro delivery network already includes more than 70,000 points with over 33,000 lockers from Allegro, DHL, DPD and Orlen Paczka, and over 37,000 pick-up points, including the chain of Żabka. Our own lockers network will exceed 8,000 machines by year-end. In the third quarter, we also added three new depots and a new sorting facility. we see network efficiency continues to improve and remain focused on the further development. A final word on our fast-growing international business. GNV grew by 56% in the third quarter and on the LTM basis it's nearing 2.5 billion produce lots. The number of active buyers increased by more than 50% year-on-year reaching 4.2 million. We continue to prioritize local selection. For example, in Czechia, where local assortment grew by over 80% year-on-year. These initiatives are improving buyer satisfaction and boosting smart loyalty adoption. We are also very pleased to see growing cross-border sales from Czech, Slovak, and Hungarian sellers into the Polish market. And now it's time to discuss the detailed financial results for the third quarter. John, it's your time.