Business Overview Mercadolibre OVERVIEW

Business Overview MercadoLibre OVERVIEW

MercadoLibre hosts the largest online commerce and payments The leading ecosystem in Latin America. Our efforts are centered on enabling e-commerce e-commerce platform in and digital and mobile payments on behalf of our customers by delivering a suite of technology solutions across the complete Latin America value chain of commerce.

WE ARE THE LEADING TECHNOLOGY COMPANY IN DEVELOPING E-COMMERCE AND PAYMENTS SOLUTIONS

Take rate $1.440

$1.217 GMV TPV

$844

11.9% 12% 17% $652 11.5% 10.5% $603 $557 3 Q19 3 Q19 $473 9.1% $374 7.9% $355 $3.6BN $ 7.6BN 6.5% 6.5%

3 Q18 3 Q18

2012 2013 2014 2015 2016 2017 2018 3Q18 3Q19 $3.0BN $ 4.6BN

BUSINESS OVERVIEW ’19. © 2019 MercadoLibre, Inc. All rights reserved. Source: Company Source GMV: Gross Merchandise Volume TPV: Total Payment Volume*as recasted due ASC 606 Overview MercadoLibre is well positioned to capture a signﬁcant market opportunity

18 COUNTRIES TOP OF MIND ENHANCED ECOSYSTEM

The largest online payments network in In E-commerce and traffic leader Payments, Shipping, SaaS, Latin America. Advertising.

1999 2000 2003 2004 2006 2007 2009 2012 2013 2014 2017

Company founded from Launched Launched Launched operations Launched IPO Launched Top searched brand Launched Issued $330M Launched business plan written at operations in Peru. Central America on in convertible Stanford GSB. in 4 additional operations Brazil - Google notes markets (DO - CR - PA) Launched operations in initial markets.(AR - BR - MX - UY).

Secured $8M round of ﬁnancing.

2004 2007 2009 2010 AWARDS

Revista Info award for Named Great Place to Oracle Innovation Credit Suisse names best website in Brazil. work. Award. MELI one of 27 “Brands of Tomorrow”

AdAge names MELI one of worlds “30 Hottest Brands”

2002 2005 2008 2011 2013 2014 2015 2016 2017 2018

Auction

Classiﬁeds

Logistics

Payments

Software

BUSINESS OVERVIEW ’19. © 2019 MercadoLibre, Inc. All rights reserved. Opportunities for growth Opportunities for Growth Evolution of eCommerce penetration 2017-2018 Significant growth opportunity for Latam compared to other

geographies Online Buyers (as % of Internet Users) Internet of % (as Buyers Online

Internet Penetration (Internet Users / Population)

e-commerce growth $75,53 in Latin America $68,71 $61,55

$53,20

$45,10 $26,68 $24,17 $21,64 $18,86 $15,31 $15,57 $13,28 $11,33 $13,03 $9,28 $7,78 $7,21 $7,04 $5,67 $6,34 $5,24 $5,05 $4,38

$22,45 $25,37 $27,73 $29,39 $31,04 $32,56

2017 2018 2019 2020 2021 2022

% of Total Retail (Latam) 2.4% 2.7% 2.9% 3.1% 3.3% 3.5% % of Total Retail (USA) 8.9% 9.7% 10.7% 12% 13.4% 14.7%

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 USERS1 65,7% 70,5% 60,5% 62,4% 86,0% SMARTPHONE PENETRATION1 45,4% 50,3% 49,6% 54,0% 70,5%

ECOMMERCE PENETRATION1 4,2% 2,7% 4,9% 36,6% 10,8%

1. Data from 2019. Source: World Bank, IMF, eMarketer 2019.

Sellers pay commissions Sellers pay to set-up and on successful transactions, equal maintenance on to a percentage of the value of an storefronts powered by us. item (or GMV).

Partnership with leading carriers and Broad offering of financial logistic partners to provide Efficient services, including payments and reliable logistic solutions: Drop processing.Gateway services, Shipping, mobile payments, credits and Cross Docking and Fulfillment cards.

Credit solution to provide cash Advertisers promote their brands and advances and working capital products within the MercadoLibre loans to professional sellers and marketplace, paying on a CPC basis loans to MercadoLibre buyers. for Product Ads and on a CPM basis for Display banners.

BUSINESS OVERVIEW ’19. © 2019 MercadoLibre, Inc. All rights reserved. Source: Company information Business Opportunities • E-commerce is expected to grow with a CAGR of 13% (2017/2022) Clearly identified growth Market Growth • Presence in 18 Latam markets 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 propietary network

Payments • Generate adoption of off platform services

Credits • Offers consumer and merchant credits on and off

New Categories • Develop new 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

This service allows both businesses and individuals to list general U$S merchandising items and conduct their sales and purchases online in either a 306M 308M fixed-price. Any Internet user in the countries in where we operate can browse Users Net Revenues through the various products that are listed on our website and register with MercadoLibre to list, bid for and purchase products and services. 22M 51% Buyers Total Revenues

The MercadoLibre Marketplace, is a fully automated, 4M 98M topically-arranged and user-friendly online commerce Sellers Sold Items service.

U$S 3.641 GMV

YoY Fx Neutral 37%

$12.505 $11.749

$8.048 $7.305 $7.082 $7.151

$3.641 $2.995

2013 2014 2015 2016 2017 2018 3Q18 3Q19 GMV (US$M)

YoY 335 17% 270

243 181

182 128 168 101 98 114 83 84

65 37 18 23 2013 2014 2015 2016 2017 2018 3Q18 3Q19 2013 2014 2015 2016 2017 2018 3Q18 3Q19

Live Listings (M) Items Sold (M)

FREE LOYALTY USABILITY PROTECTED CUSTOMER SHIPPING PROGRAM PURCHASE SUPPORT

Convenience Rewards Easy to use Protects our Efficient our users buyers solutions

OTHER PROFESSIONAL TOP SELLERS HOBBY SELLERS OFFICIAL STORES SELLERS

Brands and large retailers have their own Large sellers customizable landing page Other SMEs sellers Sale of used items Portfolio managed by MELI B2C commerce B2C commerce C2C commerce B2C commerce

6% OF GMV 15% OF GMV 61% OF GMV 18% OF GMV

Mercado Pago is designed to facilitate transactions both on and off the MercadoLibre Marketplace by providing a mechanism that allows our users to securely, easily and promptly send and receive payments online. Mercado Pago complements the MercadoLibre Mercado Pago is currently available in: Argentina, Brazil, Mexico, Marketplace, as an integrated online payments Colombia, Chile, Uruguay and Peru. solution.

36M 7.6B 227M Payers Payment Volume Payment Transactions

High non-bankarized Low credit card usage population

99% 99% Región 1 94% 73%

68% 57% 55% 63%

39% 39% 28% 29% 22%

11% 12% 10%

Brazil Mexico Colombia Peru Chile USA Canada UK Brazil Mexico Colombia Peru Chile USA Canada UK

Bankarized share of adult population Share of Credit Card usage as method of payment

389 YoY $18.456 118% YoY FX

$13.732 neutral 95% 231 227

$7.754 $7.565 139 104 $5.187 $4.552 80 $3.525 $2.498 46 31

2013 2014 2015 2016 2017 2018 3Q18 3Q19 2013 2014 2015 2016 2017 2018 3Q18 3Q19

TPV ($M) TPN (M) - Transactions

ON OFF MOBILE CREDITS CARDS PLATFORM PLATFORM

MercadoLibre PSP mPOS Cash Advances Prepaid Cards PSP Gateway Cross Wallet Merchant Cred Credit Cards Border SDK Consum. Cred Gift Cards

Through Mercado Envios, we offer a cost-efficient integration with existing 81M 95% Items Shipped logistics and shipping carriers to sellers on our platform. Sellers opting Mexico into the program are able to offer a uniform and seamless integrated shipping. Mercado Envios is available in: Argentina, Brazil, Mexico, Colombia, Chile Envios 79% and Uruguay. Penetration* Chile

68% 82% Through Mercado Envíos, MercadoLibre facilitates the Argentina Colombia shipping of goods from sellers to buyers. 93% 86% Brazil MELI

. *Measure of the number of items that were purchased including the distribution with our shipping service in our marketplace.

BUSINESS OVERVIEW ’19. © 2019 MercadoLibre, Inc. All rights reserved. Source: Company Information More than half of our items sold are shipped with our logistics Mexico & Brazil penetration: solution +90% 81

63 63 84% 86% 81% 55 78% 53 54 71% 71% 49 66% 68% 68% 63% 42

Shipping Penetration (%) Mercado Envios Items (M)

203M* $50M MercadoCrédito provides significant advances in funding strategy by Credit Consumer Credit facilitating loans to Consumers and Merchants in the MercadoLibre Portfolio Loans Marketplace, as well as cash advances to Merchants. MercadoCrédito is currently available in: Argentina, Brazil 1417M 7% and Mexico. # of Credits Total Revenues

$154M 15% Merchant Credit Cash Advances as MercadoCrédito compliments the MercadoLibre Loans a % of TPV Marketplace, accelerating Merchants sales and providing consumer finance to users.

*Portlolio defer of Loans receivable given Portfolio is not net of allowance for uncollectible accounts

HIGHLIGHTS 3Q’18 3Q’19 YOY

Successful Items 83.5 98.0 17.0%

Live Listings 168.1 243.0 44.5%

Unique Buyers 17.9 22.4 25.7%

Registered Users 3Q19 GMV 306.0M $3.6BN

$1.440

$1.216 YoY 70% $844

$652 $603 $557

$374 $335

2012 2013 2015 2016 2017 2018 Q3'18 Q3'19

$237

$203 $205

$176 $169 $172 $170 $163 $163 $160

63,5% 62,6% 60,4% 57,7% 56,7%

50,7% 50% 50% 47,6% 47,8% 47,8% 47,2%

Margin

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

23,3% 25,2% 23,5%

10,6% 9% $65 $63 $54 2,1% -0,2% -3% -2,3 $30 $27 -9,2% -8,4% $10 -13,6

-$1 -$11 -$12 -18,2% -$29 -$28

Margin -$65 -$82

3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$51 $49 $28 $12 $5

-$2.3 -$13 -$11.3 -$10 -$15,6

-$68

-146

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

• Foreign Exchange (“FX”) Neutral - Calculated by using the average confirmed their registration, excluding Classifieds users. • Drop Shipping – Shipping solution where we connect sellers with traditional monthly exchange rate of each month of 2018 and applying it to the carriers. corresponding months in the current year, so as to calculate what the • Operating margin - Defined as income from operations as a results would have been had exchange rates remained constant. percentage of net revenues. • Cross Docking – Shipping solution where we connect sellers with carriers Intercompany allocations are excluded from this calculation. GMV- through our warehousing stations in order to control quality of packaging as well • Total confirmed registered users - Measure of the cumulative Gross merchandise volume measures the total U.S. dollar sum of all as the optimization of shipping costs, routes and delivery times. number of users who have registered on the MercadoLibre Marketplace transactions completed through the MercadoLibre Marketplace, and confirmed their registration, excluding Classifieds users. excluding Classifieds transactions. • Fulfillment – Shipping solution where we store third party inventory and select carriers to optimize cost, routes and delivery times. • TPN – Total Payment Transaction measures the number of all • Unique Buyers - New or existing users with at least one purchase transactions paid for using Mercado Pago. • CPC – Cost per Click. made in the period, including Classifieds users. • TPV ON – Total Payment Volume on Marketplace measures the total • CPM – Cost per Mille. The CPM model refers to advertising bought on the basis • Unique Sellers - New or existing users with at least one new listing in U.S. dollar sum of all marketplace transactions paid for using Mercado of impression. UX – User experience the period, including Classifieds users. Pago, excluding shipping and financing fees. • NPS - Net Promoter Score is a management tool that can be used to gauge the • TPV- Total Payment Volume measures total U.S. dollar sum of all loyalty of a firm's customer relationships. transactions paid for using Mercado Pago, including marketplace and • Gateway services - Provides payment processing for merchants online. non-marketplace transactions. • mPOS – Mobile Point of Sales. • Enhanced Marketplace - Revenues from the Enhanced Marketplace service, include the final value fees and shipping fees charged to the • Wallet – Digital Wallet focused in five uses cases: QR instore payments, Utilities Company’s customers. payments, Money transfer (P2P), Transportation, Cellphone top-ups.

• Items sold - Measure of the number of items that were sold/purchased • SDK – Software Development Kit. through the MercadoLibre Marketplace, excluding Classifieds items.

• Items shipped - Measure of the number of items that were shipped through our shipping service.

• Local Currency Growth Rates - Refer to FX Neutral definition.

• Net income margin - Defined as net income as a percentage of net revenues.

• New confirmed registered users - Measure of the number of new users who have registered on the MercadoLibre Marketplace and