Allegro.eu S.A.

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Allegro Q1 2026 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 Poznak, Director of Investor Relations.

Thank you, Rafał, and welcome to all participants of our call. Let me introduce the presenters of today. Mr. Marcin Kuzmich, the CEO of Allegro Group, who will provide you with the highlights of Allegro performance in Q1 2026. And John Istik, our CFO, who will guide you through the financials and update of the outlook for the full year 2026. As usual, our results presentation is available for download from our investor webpage, Allegro.eu. You may also download these 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 expectations expressed in such statements. Please make sure you review the full disclaimer on slide number two. Also, please note that this presentation and the Q&A session are being recorded and will be available for replay on our website at Allegro.eu. And with this, I would like to hand over to our CEO. Archie, the floor is yours.

Thank you so much for the introduction. Good morning, everyone. In a single sentence, I could summarize it was a very strong quarter for Allegro. To start our deep dive, let's look at the five strategic pillars of our performance this quarter. First, our Polish operations have shown great resilience with growth rebounding to 11.6%. This performance came in with margins that actually exceeded our internal expectations. On the international front, we are seeing a very exciting acceleration with marketplaces growing 67% year-on-year. Because of this momentum, we are moving our international output upward. We are also aggressively expanding our addressable market by entering the services sector, specifically helper and travel. Everything we do remains focused on the customer and seller experience, increasingly powered by our unique AI expertise. Moving to the numbers, the Allegro Group delivered excellent results in Q1 2026. What's particularly notable is that our international segment is now actively contributing to the growth rates of both our GNV and adjusted EBITDA. In Poland, our nearly 12% GMV growth outperformed our previous outlook. Revenue grew by 18% and adjusted EBITDA surged by 18.5%, significantly beating our 7-10% four-year production. Internationally, we achieved a massive over 46% GNV growth, and while revenues saw a nearly 11% decline, we made significant progress in narrowing closest to 70% improvement in adjusted EBITDA. At the group level, GNV grew by almost 13% and adjusted EBITDA grew by nearly 24%, which is well ahead of our original four-year goals. Our long-term strategy is built on clear pillars to supercharge our marketplace. First, we focus on growing the core Polish marketplace by leveraging our existing assets. We are also reinventing our expansion model to replicate our success internationally, which, as results show, is heading in the right direction. We are working to externalize our assets, like logistics, advertising or financial services, to offer them to partners. We are also moving into everyday online shopping by adding new categories and segments. The most important shift this year is launch of services, which improves how customers buy non-physical products on our platform. All of this is supported by strategic enables, AI-driven productivity gains, and strong focus on ESG and our people. Seeing good progress in our development as quarters, I can add we have stronger and stronger appetite to explore new growth opportunities. In Q1, we focused heavily on driving loyalty and category expansion in our core market. We reached a major milestone by crossing 9 million smart users across the group. To simplify the experience, we unified the smart medium order value to a bit less than 50 zlotys for all delivery types. We also scaled our smart partnerships, adding names like Żabka, Multikino and MOL. For our sellers, we invest a lot to provide the best value for them and creating completely new possibilities like new categories for products or now also services and actively supporting their growth. We also introduced a lot of a power automation tool to help them to be more efficient. We've also seen brand store launches accelerate with 19 new stores this quarter and our best price guarantee now covers 2 million products in Poland. Finally, our AI support and marketing is making campaigns preparation up to 9 times faster. AI is now a live part of the Allegro experience. For buyers, our Shopping Assistant already offers improved results matching a conversation history feature. We are also piloting an ask-on-page AI component that answers specific technical questions about products before users turn to external search engines. For our selling partners, we are piloting frictionless listing. This allows a seller to simply pass a product link from their own store, and our AI automatically maps into our catalog. We are also using specialized ML models in categories like automotive to ensure catalog integrity and high quality product images. To maintain our technological edge, Allegro has launched a new collaboration with OpenAI, which is designed to be the next generation of commerce using frontier AI. It gives us first mover access to leading AI models and allows our engineers to work closely with open AI experts to design and test new commerce solutions. This joint engineering effort aims to set new global standards for the industry. By strengthening our technological advantage, we can further simplify the shopping process, support our selling partners more effectively, and significantly accelerate the development of new products. Our international segment covering Czechia, Slovakia and Hungary is delivering robust growth. We saw over 67% year-on-year GNV growth this quarter reaching over 800 million zloty. This was driven by very strong price offering with our prices being on average 14% lower than local competitors. Our active buyer base in the region grew by 32% to 4.9 million people. We are also seeing structural shift towards free traffic, with app adoption driving a 7 percentage point increase in free traffic share. Most importantly, customer trust in Czechia and Slovakia has now reached the same high level as in Poland, and our adjusted EBITDA margin improved by 4.3 percentage points. We are officially entering the healthcare services market through a partnership with the LuxMed Group. This move allows us to capture a high-growth, non-discretionary sector where private health spend in Poland is projected to reach PLN 48 billion by 2026. By partnering with Luxmed, a market leader with 2.5 billion customers and over 3,000 medical centers, we gain immediate scale. Our ambition is to become the largest end-to-end online healthcare marketplace, scaling from current position in consumer health products in supplements to full-service offerings. The strategy capitalizes on long-term tailwinds from an aging and increasingly affluent population in Poland. In Q2, we are launching Cadegro Vacacje, a dedicated storefront for the packaged travel market. This is a large and fast-growing segment with estimated spend on foreign packaged travel in Poland projected to hit 27 billion zloty. We are leveraging our e-commerce expertise and partnering with Itaka, the leading tour operator in Poland, with a 20% market share. Our right to win comes from our 15 million loyal customers and the ability to combine travel services with physical goods. We will also offer smart coins rewards and within around two months of launch, easy buy now pay later financing through Allegro app. Allegro Pay continues to show exceptional performance. Loan origination is up 37% year-on-year, reaching 3.9 billion zloty in Q1. Currently, AllegroPay finances over 16% of our total GNV. We are also successfully growing our other operating income from consumers' loans, which is up 125% as we increase self-funding to nearly 60%. Beyond standard loans, our Allegro Paycard has incredible NPS of 92 and is increasingly used for everyday offline spending. Additionally, our newest payment methods, Allegro Click, reach 150,000 users in just two months, making it our fastest growing payment tool to date. Finally, our logistics and delivery program is making great strides. The share of volumes managed by Allegro reached nearly 45% in Q1, up significantly from the previous year. This shift towards Allegro delivery partners too critical because it lowers our average cost per parcel. Our network is now the largest partner network in Poland with over 75,000 lockers and pickup points. Our own Allegro 1 APM network exceeded 9,500 machines this quarter, and we are firmly on track to hit our goal for over 12,000 locations by the end of 2026. As volume in the network grows, we continue to drive down unit costs. And now let's move to the financial section and our outlook.