Always delivering an amazing experience

Half-year financial report

January - June

DELIVERY HERO KEY FIGURES

	H12024 (EUR million)	H12023 (EUR million)	Change (\%)
Group
GMV	23,687.4	22,282.7	6.3\%
Total Segment Revenue	6,043.1	5,075.6	19.1\%
Adjusted EBITDA	240.5	9.2
Adj. EBITDA/GMV (\%)	$1.0 \%$	$0.0 \%$
Asia
GMV	11,827.1	12,643.2	$-6.5 \%$
Segment Revenue	1,969.1	1,831.4	7.5\%
Adjusted EBITDA	156.8	173.7
Adj. EBITDA/GMV (\%)	$1.3 \%$	$1.4 \%$
MENA
GMV	5,914.6	4,569.8	29.4\%
Segment Revenue	1,631.8	1,234.4	32.2\%
Adjusted EBITDA	209.8	111.5
Adj. EBITDA/GMV (\%)	$3.5 \%$	$2.4 \%$
Europe
GMV	4,309.6	3,646.5	18.2\%
Segment Revenue	898.9	729.5	23.2\%
Adjusted EBITDA	$-39.5$	$-98.3$
Adj. EBITDA/GMV (\%)	$-0.9 \%$	$-2.7 \%$

	H12024 (EUR million)	H12023 (EUR million)	Change (\%)
Americas
GMV	1,636.2	1,423.3	15.0\%
Segment Revenue	433.3	372.4	16.3\%
Adjusted EBITDA	$-12.9$	$-53.4$
Adj. EBITDA/GMV (\%)	$-0.8 \%$	$-3.7 \%$
Integrated Verticals
GMV	1,329.5	1,073.2	23.9\%
Segment Revenue	1,285.3	1,019.1	26.1\%
Adjusted EBITDA	$-73.8$	$-124.3$
Adj. EBITDA/GMV (\%)	$-5.5 \%$	$-11.6 \%$

Notes:

Segment Revenue, adjusted EBITDA, Gross Merchandise Value (GMV), as well as the respective growth rates for MENA, Americas, Europe and Integrated Verticals segments are impacted by hyperinflation adjustments as Argentina, Lebanon, Torsive and Ghana qualified as hyperinflationary economies according to IAS 29.
Total Segment Revenue is defined as consolidated revenue before the reduction of vouchers. Reconciliation effects comprised (FRS) adjustments for (i) logistic revenues of Glova Spain, Poland, Ukraine, Serbia and Ivory Coast, reflected net of related costs in the management reporting, whereas presented on a gross basis under IFRS IS in the Consolidated Statement of Profit and Loss and Other Comprehensive income, and (ii) net presentation of buy- and- net activities of Glova Spain and Portugal in the management reporting, whereas presented on a gross basis under IFRS IS in the consolidated statement of profit and loss and other comprehensive income.
The difference between Total Segment Revenue and the sum of each Segment Revenue was mainly due to inter segment consolidation adjustments for services charged by the platform segment to the Integrated Verticals segment.
GMV is allocated to the respective platform segments and shown in the Integrated Verticals segment for illustrative purposes only.

INTERIM GROUP MANAGEMENT REPORT

A. GROUP PROFILE PAGE A
B. ECONOMIC REPORT PAGE A

MARKET AND INDUSTRY ENVIRONMENT
BUSINESS DEVELOPMENT
A. OPERATING RESULT OF THE GROUP
B. BUSINESS DEVELOPMENT BY SEGMENT
C. FINANCIAL POSITION
D. NET ASSETS
C. RISK AND OPPORTUNITIES PAGE 12

INTERIM GROUP MANAGEMENT REPORT

A. GROUP PROFILE

The statements made in the Annual Report 2023 on the business model, the Group structure, the segments, the management system, as well as research and development are still applicable for the first six months of 2024.

Management and Supervision

Emmanuel Thomassin (CFO) resigned from his position as CFO at the end of June 2024. Transitionally, Niklas Östberg (CEO) assumed responsibility for the areas of Finance, Procurement, Legal, Investor Relation, Internal Audit, Governance, Risk Management and Compliance.

Employees

The average number of employees decreased to 43,292 in the first half of 2024 (2023: 47,981) with headcount reductions across all functional areas.

B. ECONOMIC REPORT

1. Market and Industry Environment

According to the latest forecasts published by the International Monetary Fund (IMF) in July 2024, global gross domestic product (GDP) growth is expected to reach 3.2\% in 2024. Advanced economies are projected to grow by 1.7\% in 2024, in line with the previous year, while growth in emerging markets and developing economies is anticipated to decelerate marginally to 4.3\% in 2024 (4.4\% in 2023).

The global economic activity has demonstrated remarkable resilience as inflation declined from its mid-2022 peak, with economic growth continuing at a steady pace, contrary to predictions of stagflation and a global recession. Employment and income levels remained robust, supported by
stronger-than-expected government spending and household consumption, alongside supply-side expansions, including a notable increase in labor force participation. ${ }^{2}$

Although resilient, the current pace of economic expansion is modest compared to historical standards, influenced by both immediate and long-term factors. Near-term challenges include persistently high borrowing costs and the reduction of fiscal support. Longer-term impacts stem from the COVID-19 pandemic, Russia's invasion of Ukraine, unsteady productivity growth, and increasing geoeconomic fragmentation. ${ }^{3}$

In the following sections we examine our four regional segments, based on the latest reports from the IMF and the World Bank, among others. Please note that the regions described below might differ in country constellation from Delivery Hero's segments defined for financial reporting purposes, but serve as an indication for the economic outlook of the segments.

Asia

GDP in Asia and the Pacific region is projected to maintain a strong momentum, with only a slight adjustment to growth from $5.0 \%$ in 2023 to $4.5 \%$ in 2024 . Growth will be driven by an upswing in global goods trade, bolstering exports and industrial activity, thereby mitigating the impact of slowing growth in China. GDP growth will be underpinned by robust private consumption, supported by low inflation, decreasing borrowing costs, and strong labor market conditions. The region is anticipated to remain the world's most dynamic, contributing to nearly $60 \%$ of global growth. ${ }^{4}$

In South Korea, domestic demand is anticipated to strengthen, with GDP growth projected to double from 1.3\% in 2023 to $2.6 \%$ in 2024 . The labor market is anticipated to further improve, with a historically high employment level.

Export performance is also set to improve, supported by robust demand for semiconductors. Inflation is anticipated to reach the target range of $2 \%$ by the end of 2024, despite current pressures from rising food and energy prices. ${ }^{5}$

MENA

GDP growth in the Middle East and North Africa (MENA) region is forecasted to rebound to $2.8 \%^{4}$ in 2024 (1.5\% in 2023), and is primarily driven by a gradual increase in oil production. Potential downside risks to the outlook include escalations in the armed conflicts in the region, tightening in global financing conditions and its spillover effect on global demand, Red Sea shipping disruptions and voluntary oil production cuts.

In Saudi Arabia, Delivery Hero's largest market in the region, GDP growth is projected to reach $2.5 \%^{7}$ in 2024 (-0.9\% in 2023), driven by both private consumption and business investment. In Delivery Hero's second largest market in the region, the United Arab Emirates (UAE), solid domestic activity in sectors such as tourism, construction and financial services should result in an acceleration in GDP growth to $3.9 \%^{8}$ in 2024 (3.1\% in 2023).

Europe

GDP growth in Europe is forecasted to accelerate from 1.4\% last year to $1.6 \%^{9}$ in 2024. Advanced European economies are set to grow by 0.8\% in 2024, whereas growth of $2.9 \%^{10}$ is projected for emerging European countries. Steady labor markets, though cooling, are poised to bolster real income growth and consumption. The recovery in consumption will help mitigate the impact of necessary fiscal support reductions and stimulate investments as monetary policy loosens.

Spain, Delivery Hero's largest operation in Europe, is set to grow above the region, with GDP growth estimated at $1.8 \%^{11}$ in 2024 (2.5\% in 2023). Private consumption will drive

[^0]
[^0]: ${ }^{2}$ Source: IMF, World Economic Outlook, July 2024 (Lit|A)
${ }^{3}$ Source: IMF, World Economic Outlook, April 2024 (Lit|A)
${ }^{4}$ Source: IMF, World Economic Outlook, April 2024 (Lit|A)
${ }^{5}$ Source: IMF, Regional Economic Outlook: Asia and Pacific, April 2024 (Lit|A)
${ }^{6}$ Source: World Bank, Global Economic Prospects: June 2024, pg. 83 (Lit|A)
${ }^{7}$ Source: World Bank, Global Economic Prospects: June 2024, pg. 83 (Lit|A)

growth, supported by a resilient labor market and real income increases, although population aging, productivity development, and low investments continue to exert downward pressure on the country's growth potential. Enhancing productivity and skills through further innovation and education, alongside the successful implementation of the Recovery, Transformation, and Resilience Plan, which delineates a comprehensive agenda of investments and reforms, is expected to bolster medium- to long-term growth prospects. ${ }^{17}$

Americas

GDP growth in Latin America and the Caribbean is likely to decelerate from 2.2\% in 2023 to $1.8 \%{ }^{18}$ in 2024 due to elevated real interest rates and weak trade growth. Growth is projected to rebound in the short to medium term as interest rates normalize alongside lower inflation, which should boost both investments and private consumption.

Argentina, Delivery Hero's largest operation in the region, is forecasted to experience an economic contraction of $3.5 \%{ }^{19}$ in 2024 (-1.6\% in 2023), before rebounding in the short to medium term. ${ }^{20}$ The Argentinian government is currently addressing the country's substantial economic challenges with a new policy approach that includes fiscal adjustment and the realignment of relative prices, particularly the exchange rate. These measures are expected to impact private consumption and investment throughout the year. The gradual lifting of import restrictions and currency controls will eventually boost the recovery of domestic demand. Although inflation is expected to remain high this year, it is anticipated to decrease rapidly. ${ }^{19}$

Hyperinflation

Hyperinflation refers to a situation where the prices of goods and services as well as interest and wages linked to a price index in a given country rise uncontrollably over a defined period of time. The hyperinflationary economies that

[^0]Delivery Hero currently operates in one Argentina and Türkiye since they have a cumulative inflation over three years of around $100 \%$ or more.

Revenue, adjusted EBITDA, Gross Merchandise Value (GMV) and growth rates for MENA, the Americas and Integrated Verticals are impacted by hyperinflation adjustments because Argentina (since G3 2018) and Türkiye (since G2 2022) qualify as hyperinflationary economies according to IA5 29.

Sector Development

While pursuing growth in the first-half of 2024, companies within the food delivery and quick commerce sector have focused towards implementing actions aimed at enhancing profitability, building on the industry developments experienced in 2023. Despite continued commercial efforts to increase profitability, such as operational streamlining and reducing promotional vouchering activities, certain players in specific countries have increased their investments with the goal of expanding their market share. These combined actions, along with maturing customer cohorts, are propelling the global online food delivery market forward, which is expected to grow by nearly 20\% in 2024, surpassing the \$ 1 trillion threshold achieved in 2023. ${ }^{17}$

From an operational standpoint, Delivery Hero's industry is characterized by constant change. Originating as a marketplace that facilitated connections between restaurants and customers, it has undergone substantial evolution over the years. This evolution extends beyond facilitating interactions between restaurants and customers, it now encompasses a broader range of vendors. This includes, but is not limited to, supermarkets, pharmacies, flower shops, coffee shops and many more, thereby enriching and diversifying the ecosystem. Delivery Hero offers its users a wide range of products, which includes fresh and processed food as well
as numerous other goods. This additional offering continuously enhances the customer experience with more optionality and broadens our total addressable market.

2. Business Performance

a) Performance

The Group's performance in the first half of 2024 was characterized by the continuous focus on profitable growth. Group GMV ${ }^{20}$ increased year-over-year by $6.3 \%$, from $€ 22.3$ billion in H1 2023 to $€ 23.7$ billion in H1 2024, outpaced by Total Segment Revenue with +19.1\% year-overyear, from $€ 5.075 . d$ million in H1 2023 to $€ 6.043 . f$ million in H1 2024, significantly contributed by the continuous ovendelivery roll-out in key regions, the accelerating order frequency, the impact of the continuous improvement of Smart offering and the expansion of additional revenue streams, such as AdTech products. The Group's adjusted EBITDA ${ }^{19}$ significantly improved to $€ 240.5$ million in H1 2024, after reaching the breakeven target in H1 2023 ( $€ 9.2$ million). The Group continued to optimize its cost structure leveraging the Group's ecosystem. The improvement in adjusted EBITDA was the combined result of an overall positive contribution from the Platform business, increasing significantly by $€ 180.7$ million year-over-year, as well as an improved negative adjusted EBITDA of Integrated Verticals by $€ 50.5$ million year-over-year, which also benefited from continuous global store rationalization. Consequentially, the adjusted EBITDA/GMV margin improved, from breakeven ( $0.0 \%$ ) in H1 2023 to 1.0\% in H1 2024.

b) Divestments and Assets Held for Sale

On May 14, 2024, Delivery Hero entered into an agreement with Uber Technologies Inc. (Uber), for the sale of the entire shareholding in Foodpanda Taiwan and DH Stores Taiwan for a total consideration of $\$ 950$ million. The transaction is subject to antitrust and regulatory approvals and the closing is expected to occur in the first half of 2025. Due to pending
${ }^{17}$ Source: Minsterio de Hacienda ( $\underline{102}$ )
Source: World Bank, Global Economic Prospects. June 2024, pg. 69 (102)
${ }^{18}$ Source: World Bank, Global Economic Prospects. June 2024, pg. 74 (102)
Source: OECD, Economic Outlook 2024, Argentina (102)
Source: OECD, Economic Outlook 2024, Argentina (102)
Source: ECDB (102)
${ }^{9}$ Gross Merchandise Value (GMV) is the total value paid by customers (including VA7, delivery fees and service fees less other subsidies, such as voucher and other discounts).
${ }^{10}$ Performance measure not defined by International Financial Reporting Standards (IFRS). Adjusted EBITDA is defined as earnings from continuing operations before income taxes, financial result, depreciation and amortization according to management reporting, and non-operating earnings effects. Non-operating earnings
effects comprise, in particular (i) expenses for share-based compensation, (ii) expenses for services related to corporate transactions, financing measures and certain legal matters, (iii) expenses for reorganization measures and (iv) other non-operating expenses and income, especially the result from disposal of tangible and intangible assets, the result from sale and abandonment of subsidiaries, impairment of goodwill, allowances for other receivables and non-income taxes. Adjusted EBITDA excludes depreciation from right-of-use assets under IFRS 16.

[^0]: ${ }^{17}$ Source: Ministerio de Hacienda (102)
${ }^{18}$ Source: World Bank, Global Economic Prospects. June 2024, pg. 69 (102)
${ }^{19}$ Source: World Bank, Global Economic Prospects. June 2024, pg. 74 (102)
${ }^{20}$ Source: OECD, Economic Outlook 2024, Argentina (102)
${ }^{21}$ Source: ECDB (102)

approvals, the Taiwanese operations are not classified as held for sale as of June 30, 2024.

In June 2024, Delivery Hero concluded an asset purchase agreement with Takeaway.com Central Core B.V. related to the sale of certain assets of Foodora Denmark ApS for a consideration of $€ 1.9$ million.

Furthermore, in April 2024, certain assets of Delivery Hero Slovakia s.r.o. were sold for a consideration of $€ 0.2$ million to Bolt Operations OÚ (Bolt).

Delivery Hero's remaining stake in Rappi Inc., Delaware/USA (Rappi), continues to be classified as an asset held for sale. Delivery Hero's shareholding in Rappi, remained at $2.38 \%$ as of June 30, 2024.

3. Results of Operations, Net Assets and Financial Position

a) Performance of the Group

Consolidated Statement of Profit or Loss

			Change
EUR million	HI 2024	HI 2023	EUR million	\%
Revenue	5,772.3	4,839.0	933.3	19.3
Cost of sales	$-4,132.7$	$-3,390.3$	$-742.4$	21.9
Gross profit	1,639.6	1,448.7	190.9	13.2
Gross profit margin	28.48	29.98
Marketing expenses	$-724.6$	$-744.3$	19.7	$-2.6$
IT expenses	$-271.8$	$-300.8$	28.9	$-9.6$
General administrative expenses	$-1,024.6$	$-847.6$	$-177.0$	20.9
Other operating income	15.7	23.5	$-7.8$	$-33.2$
Other operating expenses and goodwill impairment	$-8.5$	$-29.6$	21.1	$-71.3$
Impairment losses on trade receivables and other assets	$-16.2$	$-16.7$	0.5	$-3.1$
Operating result	$-390.5$	$-466.8$	76.4	$-16.4$
Net interest result	$-65.8$	$-82.4$	16.6	$-20.2$
Other financial result	$-121.6$	$-208.1$	86.5	$-41.6$
Share of the profit or loss of associates and joint ventures accounted for using the equity method	$-0.8$	$-2.0$	1.3	$-62.3$
Earnings before income taxes	$-578.6$	$-759.3$	180.7	$-23.8$
Income taxes	$-141.6$	$-12.8$	$-128.8$	$>100$
Net result	$-720.2$	$-772.1$	51.9	$-6.7$

Development of Revenue

Revenue growth during the reporting period was predominantly achieved by expanding the share of own delivery services in key regions, alongside increasing contribution of commission and consumer fees (namely, separately charged delivery and service fees). Furthermore, the growing share of Integrated Verticals (mostly Dmarts) and the expansion of the non-commission revenue (NCR) portfolio, including AdTech products, as well as the sustained scaling of subscription models positively affected revenue growth.

Commission revenue net of vouchers increased to $€ 1,903.1$ million in H1 2024 from $€ 1,610.2$ million in H1 2023, representing $33.0 \%$ of the total revenue, remaining the largest component. The increasing volume of own delivery services was reflected in the growth of separately charged delivery fees (H1 2024: $€ 1,441.0$ million; H1 2023: $€ 1,175.6$ million) and service fees (H1 2024: $€ 132.8$ million; H1 2023: $€ 92.6$ million). The increase was partly offset by free delivery campaigns in certain markets to sustain the category share.

Revenue from Dmarts in H1 2024 accounted for $€ 1,159.6$ million or $20.1 \%$ of total revenue, which represented an increase of $23.8 \%$ year-over-year (H1 2023: $€ 936.8$ million, or 19.4\% of total revenue), benefiting from the focus on product assortment and pricing, which further drove the customer demand and increased basket sizes.

EUR million	H1 2024		Change
			EUR
			million
Total Segment Revenue	6,043.1	5,075.6	967.5	19.1
Reconciliation effects ${ }^{1}$	189.9	176.2	13.7	7.8
Vouchers	$-460.7$	$-412.8$	$-47.9$	11.6
Revenue	5,772.3	4,839.0	933.3	19.3

Reconciliation effects comprised IFRS adjustments for (i) logistic revenue of Gtovo Spain, Poland, Ukraine, Serbia and Ivory Coast, reflected net of related costs in the management reporting, whereas presented on a gross basis under IFRS IS in the consolidated statement of profit and loss and other comprehensive income, and (ii) net presentation of buy-and-sell activities of Gtovo Spain and Portugal in the management reporting, whereas presented on a gross basis under IFRS IS in the consolidated statement of profit and loss and other comprehensive income.

The increase of Total Segment Revenue ( $+19.1 \%$ ) outpaced GMV growth ( $+6.3 \%$ ).

Commission revenue before deduction of vouchers and other reconciliation effects of $€ 2,265.7$ million (H1 2023: $€ 1,945.2$ million) remained at $37.5 \%$ (H1 2023: $38.3 \%$ ) the largest component of Total Segment Revenue in H1 2024. Commission revenue from own delivery contributed $85.3 \%$ of total segment commission revenue before voucher deduction (H1 2023: 84.2\%) and increased by $18.0 \%$ from $€ 1,637.4$ million in H1 2023 to $€ 1,931.5$ million in H1 2024. Revenue from delivery fees and service fees, separately charged to customers, increased in both absolute terms and in proportion to Total Segment Revenue (delivery fees: $22.7 \%$ in H1 2024 and $21.7 \%$ in H1 2023; service fees $2.2 \%$ in H1 2024 and $1.8 \%$ in H1 2023).

Vouchers increased in absolute terms, from $€ 412.8$ million in H1 2023 to $€ 460.7$ million in H1 2024, remaining stable compared to GMV (H1 2024: 1.9\%; H1 2023: 1.9\%), although decreasing in relation to Total Segment Revenue (H1 2024: $7.6 \%$; H1 2023: $8.1 \%$ ), underscoring the focus on improved marketing efficiency.

Development of adjusted EBITDA and Net Result
The positive adjusted EBITDA of the Group experienced a substantial increase year-over-year of $€ 231.3$ million, to positive $€ 240.5$ million (H1 2023: positive $€ 9.2$ million). The platform segment continued its upward trajectory, to positive $€ 314.2$ million in H1 2024 (H1 2023: positive $€ 133.5$ million). The adjusted EBITDA of Integrated Verticals further improved from negative $€ 124.3$ million in H1 2023 to negative $€ 73.8$ million in H1 2024.

The significant increase in the platform segments' positive adjusted EBITDA underscored the Group's commitment to strengthening profitability, despite geopolitical challenges, high inflation and competition. The adjusted EBITDA's positive trajectory for the platform segments was primarily connected to the increased order frequency and higher average basket sizes. Subscription model offerings further contributed to solidifying customer loyalty thereby enhancing profitability. The NCR portfolio, especially AdTech products, also contributed to the improved performance. The increasing share of the own delivery business translated into an absolute growth of delivery costs. Furthermore, initiatives to streamline the cost structure continued during the
first half of 2024, notably by leveraging of central functions, such as technology and product development services, allowing additional cost efficiencies.

The improved negative adjusted EBITDA of Integrated Verticals reflected significant advancement towards breakeven. The improvement was driven by revenue growth, benefiting from increased average basket sizes and better product assortments. Moreover, rationalization of store presence to focus exclusively on core and profitable locations effectively streamlined operations and reinforced financial sustainability.

The Group's adjusted EBITDA/GMV margin significantly increased from breakeven (0.0\%) in H1 2023 to 1.0\% in H1 2024, mainly driven by the adjusted EBITDA improvements described above.

Cost of Sales were $€ 4,132.7$ million in H1 2024 (H1 2023: $€ 3,390.3$ million), increasing year-over-year by $21.9 \%$, and remaining above the revenue growth ( $+19.3 \%$ year-overe year). The increase in the cost of sales was primarily attributable to delivery expenses, driven by both increased own delivery volumes and intensified competition in specific regions, which resulted in higher logistic costs. The portion of delivery expenses increased to $66.8 \%$ of the total cost of sales (H1 2023: 64.2\%). The delivery expenses included own delivery personnel expenses (H1 2024: € 117.2 million, H1 2023: $€ 93.1$ million), as well as external riders and other operating delivery expenses (H1 2024: $€ 2,644.7$ million, H1 2023: $€ 2,083.0$ million). The higher portion of costs of goods sold also reflected the growing Dmart contribution to the Group operations, and increased by $€ 172.2$ million year-over-year, from $€ 775.0$ million in H1 2023 to $€ 947.3$ million in H1 2024.

As a result, the gross profit margin decreased by 1.5 percentage points year-over-year to $28.4 \%$ (H1 2023: 29.9\%). Comparing the gross profit to GMV, the ratio increased by 0.4 percentage points year-over-year to $6.9 \%$ (H1 2023: $6.5 \%)$.

Marketing Expenses decreased by $2.6 \%$ to $€ 724.6$ million (H1 2023: $€ 744.3$ million). The reduction was attributed to ongoing efforts to optimize spending through alternative in-

itistives for end customers, while still ensuring essential investments to foster category position. Marketing expenses mostly included expenses for restaurant acquisition of $€ 321.9$ million (H1 2023: $€ 379.0$ million) and expenses for customer acquisition of $€ 242.2$ million (H1 2023: $€ 256.2$ million). The marketing expenses to GMV ratio decreased by $0.2 \%$ from $3.3 \%$ in H1 2023 to $3.1 \%$ in H1 2024 due to GMV growth and the above stated spend optimization.

IT Expenses decreased to $€ 271.8$ million (H1 2023: $€ 300.8$ million), mainly as a result of expense optimization, while keeping the necessary focus on technology and product innovation, in order to enhance the customer experience. The ratio of IT expenses to GMV decreased from $1.3 \%$ in H1 2023 to $1.1 \%$ in H1 2024.

General Administrative (G\&A) Expenses increased by $20.9 \%$ to $€ 1,024.6$ million (H1 2023: $€ 847.6$ million). However, excluding expenses related to the increase of provisions, G\&A expenses decreased year-over-year by $5.7 \%$. In H1 2024 G\&A included the allocation of $€ 225.5$ million (H1 2023: nil) to antitrust provision, which reflects the increase in the estimated risk exposure in connection with the ongoing inspection by the European Commission (refer to Section C. Risk and Opportunity for further details). Personnel expenses decreased by $8.8 \%$ (H1 2024: $€ 306.2$ million; H1 2023: $€ 336.0$ million), and the expenses for share-based compensation decreased by $€ 33.3$ million to $€ 98.4$ million (H1 2023: $€ 131.6$ million). Further, depreciation and amortization expenses decreased by $€ 13.6$ million to $€ 154.0$ million (H1 2023: $€ 167.6$ million). Consulting and audit expenses remained fairly stable (H1 2024: $€ 35.2$ million; H1 2023: $€ 36.0$ million), while other non-income tax expenses increased (H1 2024: $€ 47.7$ million; H1 2023: $€ 39.7$ million). The ratio of G\&A to GMV amounted to $4.3 \%$ (H1 2023: 3.8\%); the ratio of G\&A adjusted for expenses related to antitrust risks to GMV amounted to $3.4 \%$ (H1 2023: 3.8\%).

Net Interest Result improved to negative $€ 65.8$ million (H1 2023: negative $€ 82.4$ million). It mainly included the amortization of the financial liabilities measured at amortized costs, including the effective interest from convertible bonds and syndicated term loans. It was positively impacted by non-recurring net gains resulting from various modifications of the term loans in H1 2024 ( $€ 75.6$ million) and gains from the partial buybacks of convertible bonds (H1 2024: $€ 29.6$ million; H1 2023: $€ 61.0$ million).

Other Financial Result improved from negative $€ 208.1$ million in H1 2023 to negative $€ 121.6$ million in H1 2024. The result was primarily driven by net foreign currency translation losses of $€ 85.4$ million (H1 2023: net loss of $€ 119.6$ million) and net losses from the fair value measurement of financial instruments (H1 2024: net loss of $€ 25.5$ million; H1 2023: net loss of $€ 100.2$ million).

The increase in current income tax expenses (H1 2024: $€ 180.1$ million; H1 2023: $€ 124.2$ million) is mainly attributable to the increase in taxable income of foreign subsidiaries as well as the growth of withholding taxes. Deferred Tax Income of $€ 38.4$ million (H1 2023: $€ 111.3$ million) mainly refers to the derecognition of deferred tax liabilities in connection with previous transactions and related to the convertible bonds. The effect was partly offset by the increase of deferred tax liabilities related to the Term Facilities.

Adjusted EBITDA of the segments reconciled to earnings before income taxes as follows:

			Change
EUR million	H1 2024	H1 2023	EUR million	\%
Adjusted EBITDA of the segments	240.5	9.2	231.3	$>100$
Management adjustments	$-293.2$	$-62.8$	$-230.3$	$>100$
Expenses for share-based compensation	$-98.4$	$-131.6$	33.3	$-25.3$
Other reconciliation items	$-5.9$	$-25.0$	19.1	$-76.3$
Amortization and depreciation ${ }^{2}$	$-233.4$	$-256.6$	23.2	$-9.0$
Financial result ${ }^{3}$	$-188.1$	$-292.5$	104.4	$-35.7$
Earnings before income taxes	$-578.6$	$-759.3$	180.7	$-23.8$

The comparative information is restated due to the correction of an error. See Section A.4. of the Notes to the Half-Year Financial Statements for further details. Amortization and depreciation according to management reporting also includes provisions for financing provided to investments and joint ventures and excludes goodwill impairment, which is included in other reconciliation items. 1 Sum of net interest result, other financial result and share of profit or loss of associates and joint ventures accounted for using the equity method.

Management adjustments included (i) expenses for services related to corporate transactions, financing measures and certain legal matters of $€ 269.0$ million (H1 2023: $€ 33.7$ million), which mainly comprised $€ 226.4$ million expenses for antitrust and other legal matters (H1 2023: $€ 8.2$ million), $€$ 12.6 million expenses recognized for earn-out liabilities and other bonus arrangements in connection with acquisitions in previous years (H1 2023: $€ 23.6$ million) and expenses for services related to corporate finance transactions of $€ 28.3$ million (H1 2023: $€ 1.6$ million); (ii) expenses for reorganization measures of $€ 24.2$ million (H1 2023: $€ 29.1$ million) with respect to central functions and local business units, mainly related to reductions in headcount and contract termination costs.

Other reconciliation effects mainly included non-operating income and expenses.

Development of GMV

EUR million	H12024	H12023	Change
			EUR million	$\%$
Asia	11,827.1	12,643.2	$-816.1$	$-6.5$
MENA	5,914.6	4,569.8	1,344.8	29.4
Europe	4,309.6	3,646.5	663.2	18.2
Americas	1,636.2	1,423.3	212.9	15.0
Total	23,687.4	22,282.7	1,404.7	6.3
thereof: Integrated Verticals ${ }^{1}$	1,329.5	1,073.2	256.3	23.9

GMV is presented in both regional segments and integrated Verticals, subseq quently consolidated at Group level.

The GMV development in H1 2024 benefited from initiatives carried out across the segments mainly aimed at enhancing the order frequency, expanding the customer base and improving the overall customer experience, while increasing basket sizes. Conversely, GMV in Asia saw a decline year-over-year, mainly attributed to intensified competition and an overall normalization component still persisting into end customer's behavior, compounded by slightly adverse foreign currency effects.

b) Business Development by Segment

Asia

EUR million	H12024	H12023	Change
			EUR million	$\%$
GMV	11,827.1	12,643.2	$-816.1$	$-6.5$
Segment revenue	1,969.1	1,831.4	137.7	7.5
Adjusted EBITDA	156.8	173.7	$-16.9$	$-9.7$
Adj. EBITDA/GMV (\%)	1.3\%	1.4\%
Own delivery share (\%)	52.0\%	44.7\%

The decrease in GMV in the Asia segment in H1 2024 was mainly driven by the increasing competition and overall market rationalization, coupled with increased outbound
travel in key Asian markets. Additionally, adverse exchange rate effects, particularly involving the South Korean Won and New Taiwan Dollar against the reporting currency, contributed to this decline. These external factors were mitigated through initiatives aimed at enhancing customer affordability as well as adopting new pricing schemes. Delivery fee promotions, especially on stacked own delivery service increased the own delivery share in the region, supporting the GMV. Overall, Asia contributed $49.9 \%$ to Group GMV in H1 2024 (H1 2023: 56.7\%).

The increase in Segment Revenue is driven by the ongoing roll-out of own delivery in the region leading to a higher take rate, notwithstanding the free delivery campaigns carried out to build momentum in the Group's own delivery business and protect market position. Additionally, AdTech revenue saw a notable increase, driving ongoing growth through product enhancements. In particular, the rollout of Machine Learning optimization of search rankings and personalized ad displays contributed to higher revenue for restaurant premium positions.

Positive adjusted EBITDA decreased from € 173.7 million in H1 2023 to $€ 156.8$ million in H1 2024, despite the overall revenue increase, primarily affected by the aforementioned free delivery initiatives, and due to rise in total logistics costs to adequately secure rider supply and sustain the own delivery category share. Marketing spends increased in connection with significant investments in incentives to protect customer base and market position, partially offset by reduced marketing costs in media and brand activities. Additionally, headcount optimization had a favorable impact on the adjusted EBITDA of the segment.

The own delivery share grew as a result of the investments in own delivery business, particularly with the strategic focus on stacked delivery service.

In May 2024 Delivery Hero signed a share purchase agreement to sell its foodpanda business in Taiwan to Uber. The Asia segment performance includes the Taiwanese business in H1 2024 as closing of the transaction is subject to the fulfillment of customary closing conditions and obtaining required regulatory approvals, including merger control approval. Refer to Section B.2.b) for further details.

MENA

EUR million	H12024	H12023	Change
			EUR million	$\%$
GMV	5,914.6	4,569.8	1,344.8	29.4
Segment revenue	1,631.8	1,234.4	397.4	32.2
Adjusted EBITDA	209.8	111.5	98.3	88.1
Adj. EBITDA/GMV (\%)	3.5\%	2.4\%
Own delivery share (\%)	76.8\%	68.0\%

In the first half of 2024, GMV experienced a significant growth, sustained by increased customer base and larger average basket size. The performance was linked to a continued focus on better customer experience, notably achieved through own delivery ramp-up ( +8.8 percentage points year-over-year) and affordability offers, such as attractive subscription plans, aimed at improving retention and protecting the high value customer base. The emphasis on vendor partnerships, combined with enhancements in product availability (also leveraging multi-verticality with quick commerce) and better coverage, elevated the customer experience and helped sustain the position in the region. Overall, MENA contributed 25.0\% to Group GMV in H1 2024 (H1 2023: 20.5\%).

Segment Revenue benefited from the aforementioned GMV development, boosted by the growing share of owndelivery services. Furthermore, the scale up of AdTech products gained momentum, increasing the proportion of non-commission revenue (NCR) and fostering the overall metrics.

The adjusted EBITDA further increased year-over-year, driven by healthy customer demand and the development of revenue streams, combined with overall improved unit economics. In this sense, better profitability margins were particularly achieved through reduced delivery cost per order across the segment, supported by renegotiated contract terms with external logistic partners, as well as order stacking that improved the operational effectiveness. The Turkish lira continued to be reported as hyperinflationary currency in accordance with IA5 29, with a positive effect on segment revenue and an adverse effect on cost structure.

Europe
EUR million	H12024	H12023	Change
			EUR million	$\%$	EUR million
GMV	4,509.6	3,646.5	663.2	18.2
Segment revenue	898.9	729.5	169.4	23.2
Adjusted EBITDA	$-39.5$	$-98.3$	58.8	$-59.8$
Ad, EBITDA/GMV (\%)	$-0.9 \%$	$-2.7 \%$
Own delivery share (\%)	70.3\%	63.1\%

The Europe segment's GMV growth during H1 2024 was driven by increasing order frequency and larger basket sizes. The Glovo brand, particularly in Spain and Italy, positively contributed on the back of improving category share position. Europe segment's GMV contributed $18.2 \%$ to the H1 2024 Group GMV (H1 2023: 16.4\%).

Segment Revenue growth surpassed GMV development, achieving a $+23.2 \%$ year-over-year. This positive performance was primarily attributable to the expansion of the own delivery share, leading to an increased contribution of consumer fees. Additionally, non-commission revenue experienced a significant uplift, mainly due to a substantial increase in AdTech products.

The adjusted EBITDA improvement year-over-year was the result of segment revenue increase combined with a focus on operational efficiencies and leveraging synergies.

Americas
			Change
			EUR million	H12024	H12023
GMV	1,636.2	1,423.3	212.9	15.0
Segment revenue	433.3	372.4	60.9	16.3
Adjusted EBITDA	$-12.9$	$-53.4$	40.5	$-75.9$
Ad, EBITDA/GMV (\%)	$-0.8 \%$	$-3.7 \%$
Own delivery share (\%)	94.9\%	93.7\%

The increase of GMV of the Americas segment was largely driven by the expansion of the Group's quick commerce business, including the onboarding of more grocery stores and an expanded product selection. Additionally, strategic cross-selling between food delivery and quick commerce, coupled with the rollout of the subscription model in additional countries, facilitated customer retention and order frequency. Overall, the Americas segment contributed 6.9\% to Group GMV, compared to 6.4\% in H1 2023.

The growth of Segment Revenue in H1 2024 was supported not only by additional contributions from commission-based revenue, driven by the aforementioned GMV increase, but also by increased market penetration with AdTech products across all markets. Additionally, the expansion of the own delivery has been integral to the Group's customer-centric strategy, enhancing the customer experience, while also contributing to the segment revenue growth.

The Americas segment demonstrated a significant performance development in H1 2024, with an improvement of adjusted EBITDA from negative $€ 53.4$ million in H1 2023 to negative $€ 12.9$ million in H1 2024. This result was largely due to enhancements in marketing and sales efficiency. The ongoing efforts to refine the subscription model enabled a strategic focus on a more cost-effective and sustainableretention. Additionally, investments in product innovation have streamlined the restaurant sign-up process, leading to savings in sales activities and increasing the Group platform's exposure to potential partners.

Integrated Verticals


EUR million	H12024	H12023	EUR million	$\%$
GMV	1,329.5	1,073.2	256.3	23.9
Segment revenue	1,285.3	1,019.1	266.2	26.1
Adjusted EBITDA	$-73.8$	$-124.3$	50.5
Ad, EBITDA/GMV (\%)	$-5.5 \%$	$-11.6 \%$

The Integrated Verticals segment mostly consists of own warehouse operations (Dmarts). Consequently, Integrated Verticals mainly represent businesses where Delivery Hero acts as principal in the sale of on-demand items. Accordingly, revenue is recognized on the basis of gross merchandise value net of VAT.

As of June 30, 2024, Dmarts operate in all regional segments with a total of 834 stores in 50 countries (December 31, 2023: 932 stores in 57 countries).

The Integrated Verticals segment GMV increased by 23.9\% in the first half of 2024, driven by customer demand as evidenced by higher order frequency and larger shopping baskets across the regions.

Negative adjusted EBITDA and adjusted EBITDA/GMV margin improved mainly due to inventory management initiatives focused on continuous development of preferred product assortment and availability, while reducing shrinkage in mature Dmarts. This was combined with the closure of underperforming stores, in the context of global footprint optimization and unit economic improvements.

c) Financial Position

The development of the Group's financial position in the first half of 2024 is shown in the following condensed statement of cash flows:

EUR million	H1 2024	H1 2023
Cash and cash equivalents as of January $1^{1}$	1,659.4	2,417.3
Cash flow from operating activities	103.2	$-177.2$
Cash flow from investing activities	55.7	$-92.4$
Cash flow from financing activities	$-42.4$	$-144.2$
Effect of exchange rate movements on cash and cash equivalents	$-19.9$	$-79.5$
Cash and cash equivalents as of June $30^{2}$	1,755.9	1,924.1

${ }^{1}$ Cash of $€ 0.5$ million included in a disposal group classified as held for sale as of January 1, 2023.
${ }^{2}$ Cash of $€ 0.5$ million included in a disposal group classified as held for sale as of June 30, 2023.

Operating cash flow in H1 2024 significantly improved to positive $€ 103.2$ million compared to the prior period (negative $€ 177.2$ million), mainly driven by the focus on profitability and the resulting performance improvements in the segments.

Net cash used in investing activities improved from negative $€ 92.4$ million to positive $€ 55.7$ million and primarily related to investments in property, plant and equipment ( $€ 63.1$ million, H1 2023: $€ 62.8$ million) and intangible assets ( $€ 71.7$ million, H1 2023: $€ 49.9$ million) that were mainly offset by the cash received from the divestment of other financial assets in the amount of $€ 175.9$ million (H1 2023: $€ 9.7$ million), as well as interest payments received in the amount of $€ 24.1$ million (H1 2023: $€ 25.7$ million).

H1 2024 net cash flow from financing activities (negative $€ 42.4$ million, H1 2023: negative $€ 144.2$ million) mainly resulted from cash outflows from the orderly repayment of the remaining Convertible Bonds I (Tranche A), the partial buyback of the Convertible Bonds II (Tranche A) maturing in 2025 and the Convertible Bonds III (Tranche A) maturing in

2026 with a total cash outflow of $€ 846.7$ million, as well as the payment of the remaining NCI put liability related to Woowa ( $€ 14.0$ million), lease liabilities ( $€ 73.7$ million, H1 2023: $€ 72.5$ million) and interest ( $€ 106.1$ million, H1 2023: $€$ 74.3 million). The cash outflows were partly offset by the increase of the existing term loans ( $€ 744.0$ million) and the proceeds from the Uber contribution of $€ 277.9$ million, following a capital increase.

d) Net Assets

As of June 30, 2024, the Group's balance sheet is structured as follows:

EUR million	Jun. 30, 2024	$\%$	Dec. 31, 2023	$\%$	Change
Non-current assets	7,343.9	70.6	7,653.3	73.0	$-309.5$
Current assets	3,054.0	29.4	2,834.5	27.0	219.5
Total assets	10,397.9	100.0	10,487.8	100.0	$-90.0$

The Group's total assets as of June 30, 2024 decreased by $0.9 \%$ compared to December 31, 2023.

Non-current assets decreased by 4.0\% or $€ 309.5$ million, mainly in connection with a reduction of intangible assets by $€ 180.5$ million, as well as other non-current financial assets by $€ 132.3$ million. Currency translation effects, especially related to the Korean Won, adversely affected intangible assets, and particularly goodwill. Other non-current financial assets decreased mainly in connection with divestment of shareholdings, partly offset by increase in derivative financial instruments related to the term loans (refer to Section F.2. of the Half-Year Financial Statements for further details).

The net increase in current assets ( $+7.7 \%$ or $€ 219.5$ million) as of June 30, 2024, was predominantly attributable to increased cash and cash equivalents ( $+€ 96.5$ million), as well as to higher receivables from payment service providers ( $+€ 60.2$ million).

The Group's equity decreased by $24.5 \%$ or $€ 404.5$ million, mainly reflecting the net loss of the period, while partially compensated by capital increases, as well as further vesting of equity-settled share-based payment awards. The capital increases predominantly related to (i) the issuance of new shares to Uber ( $€ 277.9$ million) and (ii) the issuance of the restricted stock units under the existing share-based incentive program. The exercise of options to transfer outstanding Woowa shares to DH further contributed to the capital
increase, partially offset by the partial buybacks of outstanding convertible bonds (refer to section F.7. of the HalfYear Financial Statements for further details).

As of June 30, 2024, non-current liabilities increased by $7.6 \%$ or $€ 447.1$ million, mainly connected to an increase of liabilities to banks ( $+€ 760.8$ million) following the term loan's syndication in H1 2024. The additions to other provisions related to legal risks ( $+€ 237.4$ million) primarily reflected the increase in the estimated risk exposure in connection with the ongoing inspection by the European Commission, and contributing to the higher portion of non-current provisions. The increase was partially offset by the effects of partial buybacks of outstanding convertible bonds during H1 2024.

Current liabilities portion decreased by $4.5 \%$ or $€ 132.7$ million, primarily due to the redemption of the Company's Convertible Bonds I (Tranche A), which matured in January 2024 ( $€ 286.7$ million). The decrease was partially compensated by higher trade payables ( $+€ 90.8$ million) and liabilities from employee benefits ( $+€ 33.9$ million).

C. RISK AND OPPORTUNITY

The risks and opportunities presented in the Combined Management Report 2023 remain valid. Nevertheless, for H1 2024 we amended some of the risks, based on the scope of the report. Regarding the going concern risk for a significant component, we refer to Section A.3. of the Half-Year Financial Statements.

1. Updated Risk Report

Regulatory Risks Related to Riders
Changes to 2023: Over the last year, Portuguese courts examined the allegations of local authorities, who had determined that several riders were misclassified by Glova. To date, the majority of courts in Portugal have ruled that the riders were correctly classified as self-employed workers, contrary to the local authorities' assessments.