MERCADOLIBRE BUSINESS OVERVIEW - MERCADOLIBRE INVESTOR RELATIONS
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Business Overview MercadoLibre
O V E R VIEW
The leading MercadoLibre hosts the largest online commerce and
payments ecosystem in Latin America
e-commerce and Our efforts are centered on enabling e-commerce
Fintech platform in and digital and mobile payments on behalf of our
customers by delivering a suite of technology
Latin America
solutions across the complete value chain of
commerce
CONNECTING
W E AR E T HE LEADI NG
137M ACTIVE USERS T ECHNO LO G Y CO M PANY IN
WITH
DEVELO PI NG
E- COM M ERCE AND PAY M ENT S
OUR ECOSYSTEM SO LUT IO NS
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. ACT I V E U S E R S AS O F LAS T T W E LV E MO N T H S B AS I SOverview
Net Revenues (US$M)
$3,973
GMV TPV
$2,296
Take rate
19%
$1,440
17% $1,378 1Q21 1Q21
$1,217
$844
$6.1B $ 14.7B
$652 12% 12% $652 23%
$557 11%
19%
8%
9%
1Q20 1Q20
2014 2015 2016 2017 2018 2019 2020 1Q20 1Q21
$3.4B $ 8.1B
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company Source GMV: Gross Merchandise Volume TPV: Total Payment VolumeOverview
MercadoLibre is well positioned to capture
a significant market opportunity
18 COUNTRIES TOP OF MIND ENHANCED ECOSYSTEM
The largest online payments In E-commerce and traffic Payments, Shipping, SaaS,
network in Latin America leader Advertising
638M 362M 200M 70M
Population Internet Online Active
in Latam Users Shoppers Users *
1. Last 12 months
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company source, eMarketer, World Bank. *In the quarter of 1Q'21Our Achievements
Our Achievements
1999 2000 2003 2004 2006 2007 2009 2012 2013 2014 2017
Company founded Launched Launched Launched Launched IPO Launched Top searched Launched Issued Launched
from business plan operations operations Central brand on $330M in
written at Stanford in 4 additional in Peru. America Brazil - Google convertible
GSB. markets operations notes
(DO - CR -
Launched PA)
operations in initial
markets.(AR - BR -
MX - UY).
Secured $8M
round of financing.
2004 2007 2009 2010
AWARDS
Revista Info award Named Great Oracle Credit Suisse names
for best website in Place to work. Innovation MELI one of 27
Brazil. Award. “Brands of
Tomorrow”
AdAge names MELI
one of worlds “30
Hottest Brands”
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Our Acquisitions
2002 2005 2008 2011 2013 2014 2015 2016 2017 2018 2020
Auction
Classifieds
Logistics
Payments
Software
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Opportunities for growth
Opportunities
for Growth Evolution of eCommerce penetration 2018-2019
Significant growth
Online Buyers (as % of Internet Users)
opportunity for Latam USA
compared to other China
geographies Argentina
Brazil
India
Mexico
Internet Penetration (Internet Users / Population)
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: eMarketer 2019 and Statista 2019Opportunities for Growth
Industry Backdrop: Macro indicators
BRAZIL ARGENTINA MEXICO CHINA USA
POPULATION1 209M 44M 129M 1.386M 326M
GDP1 | CURRENT USA $2,06B $0,64B $1.15B $12,24B $19,39B
GDP1 / CAPITA | CURRENT USA $8.920 $11.653 $9.698 $9.770 $62.641
GDP1 , PPP | CURRENT INTERN. $3,37B $0,92B $2,52B $25,36B $20,49B
GDP1 , PPP / CAPITA $16.068 $10.567 $19.969 $18.210 $62.641
GDP1 GROWTH 1,1% (2,5)% 2,0% 6,6% 2,9%
INTERNET USERS2 147M 33M 80M 914M 290M
ONLINE BUYERS2 61M 16M 20M 703M 202M
1. Data from 2018 | 3. Percentage of respondents who report having an account (by themselves or together with someone else).
Can be an account at a bank or another type of financial institution (includes mobile account) – Data from 2018
2. eMarketer 2020.
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Opportunities for Growth
Website and App Visits (M)
Leading e-commerce website by unique visitors in Latam
3376 206
1057
2390 146
119
81 94
1145 1446
69
1015
1004
199
47 47 49 61
Argentina Brasil Chile
258 1198 5107
831
3376
2124
1446
74 97 1079
52 66 234 1015
45 195 214
154
Colombia Mexico Latam
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: GfK, March 2021Business Model
Our Business Model
Sellers pay commissions
Sellers pay to set-up and
on successful transactions,
maintenance on
equal to a percentage of
storefronts powered by us
the value of an item (or
GMV)
Partnership with leading carriers Broad offering of financial
and logistic partners to provide services, including
Efficient and reliable logistic payments processing.
solutions: Drop Shipping, Gateway services, mobile
Cross Docking and Fulfillment payments, credits and cards
Credit solution to provide Advertisers promote their
cash advances and working brands and products within
capital loans to professional the MercadoLibre
sellers and loans to marketplace, paying on a CPC
MercadoLibre buyers basis for Product Ads and on a
CPM basis for Display banners
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company informationBusiness Opportunities
• E-commerce is expected to grow signicantly
Clearly identified Market Growth • Presence in 18 Latam markets
growth drivers
Mobile • Mobile shift expanding customer base
• Marketplace continues to push towards mobile users
Logistics • Provide high levels of free shipping across marketplaces
• Increase adoption of shipping and proprietary network
• Increase adoption of off platform services
Payments • Leverage on MELI’s ecosystem
Credits • Expand consumer and merchant credits offering
New Categories • Continue to grow high frequency categories (Supermarket & Groceries)
Merchant Base • Grow volume coming from large merchants and branded
retailers
• Focus on UX to drive engagement and loyalty
User experience • Focus on NPS for continuous improvement
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Marketplace
U$S
This service allows both businesses and individuals to list general 6B
merchandising items and conduct their sales and purchases online
GMV
in either a fixed-price. Any Internet user in the countries in where
we operate can browse through the various products that are listed
on our website and register with MercadoLibre to list, bid for and
222M
purchase products and services
Sold Items
The MercadoLibre Marketplace, is a fully automated, 36M
topically-arranged and user-friendly online commerce Buyers
service
4M
Sellers
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Scompany InformationSolid growth in Core
Marketplace
metrics
YoY FXN YoY
114% 719
110%
$ 20,927
$ 13,997
$ 12,505
$ 11,749 378
335
$ 8,048 270
$ 7,082 $ 7,151 222
$ 6,057 181
$ 3,414 128
101 106
2014 2015 2016 2017 2018 2019 2020 1Q20 1Q21 2014 2015 2016 2017 2018 2019 2020 4Q19 4Q20
GMV (US$M) Items Sold (M)
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationWe deliver the best 17
shopping experience
FREE LOYALTY USABILITY PROTECTED CUSTOMER
SHIPPING PROGRAM PURCHASE SUPPORT
Convenience Rewards Easy to use Protects our Efficient
our users buyers solutions
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Our Marketplace includes four
types of sellers
OFFICIAL TOP OTHER PROFESSIONAL HOBBY
STORES SELLERS SELLERS SELLERS
Brands and large retailers have their Large sellers
own customizable landing page Other SMEs sellers Sale of used items
Portfolio managed by MELI
B2C commerce B2C commerce C2C commerce
B2C commerce
20% GMV 8% GMV 67% GMV 6% GMV
1. Last 12 months
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationPayment Solutions
Mercado Pago is designed to facilitate transactions both U$S
on and off the MercadoLibre Marketplace by providing 15B
a mechanism that allows our users to securely, easily Payment Volume
and promptly send and receive payments online
Mercado Pago is currently available in: Argentina, Brazil,
Mexico, Colombia, Chile, Uruguay and Peru
630M
Payment Transactions
Mercado Pago complements the MercadoLibre
Marketplace, as an integrated online
payments solution
57M
Payers
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Scompany InformationSolid growth in all
Payments metrics
$49,757
1,914
YoY FX
neutral YoY
$28,390 129% 131%
830
$18,456
$14,718 630
$13,732
$8,095 389
$7,754 291
$5,187 231
139
80
2015 2016 2017 2018 2019 2020 1Q20 1Q21 2015 2016 2017 2018 2019 2020 1Q20 1Q21
TPV ($M) TPN (M) - Transactions
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationUnderstanding
LATAM payments 99% 99%
culture 94%
97%
90%
High non-bankarized Low debit card ownership 80%
population 70%
59%
49%
46%
41%
37%
25% 26%
Mexico Colombia Argentina Brazil USA Canada UK Mexico Colombia Argentina Brazil USA Canada UK
Bankarized share of adult population Share of population with ownership of a Debit Card
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: World Bank, Global Fintech DataWe offer a broad
range of fintech services
ON OFF
MOBILE CREDITS CARDS
PLATFORM PLATFORM
MercadoLibre PSP mPOS Cash Advances Prepaid Cards
PSP Gateway Wallet Merchant Cred Credit Cards
Cross Border SDK Consum. Cred Gift Cards
1. Last 12 months
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Shipping Solutions
Through Mercado Envíos, we offer a cost-efficient integration 208M
with existing logistics and shipping carriers to sellers on our Items
platform. Sellers opting into the program are able to offer a Shipped
uniform and seamless integrated shipping
Mercado Envíos is available in: Argentina, Brazil, Mexico,
Colombia, Chile and Uruguay 97%
MELI
Envios Penetration*
Through Mercado Envíos, MercadoLibre facilitates
80%
the shipping of goods from sellers to buyers MELI
Managed Network
Penetration**
*Measure of the number of items that were purchased including the distribution with our shipping service in our
marketplace.
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company Information ** Measure of the number of items that were purchased including the distribution with cross-docking, fulfillment or
Flex solutionOver 90% of our items sold
are shipped
with our logistics
solution
97
214
208
94
92 188
91
157
88 88
86
84
81 93 90
81
70
63
Shipping Penetration (%) Mercado Envíos Items (M)
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationCredits Solutions
Mercado Crédito provides significant advances in funding
strategy by facilitating loans to Consumers and Merchants in 576M
the MercadoLibre Marketplace, as well as cash advances to Credit
Merchants Portfolio
Mercado Crédito is currently available in: Argentina, Brazil
and Mexico 18M
# of Credits
Mercado Crédito compliments the MercadoLibre
Marketplace, accelerating Merchants sales 8%
and providing consumer finance to users Cash
Advances as a
% of TPV ON
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationFinancial Metrics
Financial Metrics
Overview
HIGHLIGHTS 1Q’20 1Q'21 YOY
Gross Merchandise
Volume
3.4B 6.1B 114%
Successful Items 106M 222M 110%
Live Listings 267M 299M 12%
Unique Buyers 24M 36M 51%
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationFinancial Metrics
Net Revenues (US$M)
$3,973
YoY
$2,296 158%
$1,440 1,378
$1,217
$844
$557 $652 $652
2014 2015 2016 2017 2018 2019 2020 Q1'20 Q1'21
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationFinancial Metrics
Gross Profit (US$M)
$591
$480 $489
Margin
$427
$308 $313
$272 $284
$237
$205
$163 $160 $170
51% 50% 50%
48% 48% 48% 48% 49%
47%
46%
43% 43%
37%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationFinancial Metrics
EBIT (US$M)
$ 99
$ 91
$ 83
$ 10
-$ 1
-$ 11 -$ 12
-$ 28 -$ 25
-$ 29 -$ 30
-$ 69
-$ 82
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationFinancial Metrics
Net Income
$ 56
$ 12 $ 16 $ 15
-$ 2
-$ 13 -$ 11 -$ 10
-$ 21
-$ 34
-$ 54 -$ 51
-$ 146
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved. Source: Company InformationGlossary of Terms
• Unique Active User - New or existing user who performed at least • Items sold - Measure of the number of items that were • Fulfillment – Shipping solution where we store third party inventory and
one of the following actions during the reported period: (1) made sold/purchased through the MercadoLibre Marketplace, excluding select carriers to optimize cost, routes and delivery times.
one purchase, or reservation, or asked one question or Classifieds items.
MercadoLibre Marketplace or Classifieds Marketplace (2) maintained • CPC – Cost per Click.
an active listing on MercadoLibre Marketplace or Classifieds • Items shipped - Measure of the number of items that were
Marketplace (3) maintained an active account in Mercado Shops (4) shipped through our shipping service. • CPM – Cost per Mille. The CPM model refers to advertising bought on the
made a payment, money transfer, collection and/or advance using basis of impression. UX – User experience
Mercado Pago (5) maintained an outstanding credit line through • Local Currency Growth Rates - Refer to FX Neutral definition.
Mercado Credito or (6) maintained a balance of more than $5 • NPS - Net Promoter Score is a management tool that can be used to gauge
• Net income margin - Defined as net income as a percentage of the loyalty of a firm's customer relationships.
invested in a Mercado Fondo asset management account.
net revenues.
• Foreign Exchange (“FX”) Neutral - Calculated by using the • Gateway services - Provides payment processing for merchants online.
• New confirmed registered users - Measure of the number of
average monthly exchange rate of each month of 2018 and applying
new users who have registered on the MercadoLibre Marketplace • mPOS – Mobile Point of Sales.
it to the corresponding months in the current year, so as to
and confirmed their registration, excluding Classifieds users.
calculate what the results would have been had exchange rates
• Wallet – Digital Wallet focused in five uses cases: QR instore payments,
remained constant. Intercompany allocations are excluded from this • Operating margin - Defined as income from operations as a Utilities payments, Money transfer (P2P), Transportation, Cellphone top-ups.
calculation. GMV- Gross merchandise volume measures the total percentage of net revenues.
U.S. dollar sum of all transactions completed through the • SDK – Software Development Kit.
MercadoLibre Marketplace, excluding Classifieds transactions. • Total confirmed registered users - Measure of the cumulative
number of users who have registered on the MercadoLibre
• TPN – Total Payment Transaction measures the number of all Marketplace and confirmed their registration, excluding Classifieds
transactions paid for using Mercado Pago. users.
Unique Buyers - New or existing users with at least one purchase
• TPV ON – Total Payment Volume on Marketplace measures the
made in the period, including Classifieds users.
total U.S. dollar sum of all marketplace transactions paid for using
Mercado Pago, excluding shipping and financing fees. • Unique Sellers - New or existing users with at least one new listing
in the period, including Classifieds users.
• TPV- Total Payment Volume measures total U.S. dollar sum of all
transactions paid for using Mercado Pago, including marketplace • Drop Shipping – Shipping solution where we connect sellers with
and non-marketplace transactions. traditional carriers.
• Enhanced Marketplace - Revenues from the Enhanced • Cross Docking – Shipping solution where we connect sellers with
Marketplace service, include the final value fees and shipping fees carriers through our warehousing stations in order to control quality
charged to the Company’s customers. of packaging as well as the optimization of shipping costs, routes
and delivery times.
BUSINESS OVERVIEW 1Q'21. © 2021 MercadoLibre, Inc. All rights reserved.Thank you
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