Delivery Hero SE

Earnings Release • Aug 2, 2018

H1 2018 Trading Update

August 2nd , 201 8

Our Clear Vision

Create an amazing takeaway experience

AMAZING FOOD

AMAZING ORDERING

AMAZING SERVICE

Business Update - Niklas Östberg, CEO

• Financial Update Emmanuel Thomassin, CFO
• Outlook Niklas Östberg, CEO
• Q&A

H1 2018 Financial Highlights

1. Like-for-like, please refer to the "Definitions" slide and on a constant currency basis.

Continuous Track Record of Quarterly Growth

1. Growth rates are on a constant currency basis

2. Like-for-like, please refer to the "Definitions" slide

3. All values in Unit million / € million

H1 2018 Business Update

Improved service levels for our customers

• Continued expansion of our logistics services particularly in MENA and Americas
• Investments in delivery affordability (lower delivery fees and lower minimum basket size)
• Improved service levels have driven additional demand expanding the size of our delivery market

Increased sales coverage

• v • Increased sales effort with focus on new city and area coverage across our markets
• Increased restaurant coverage and supply have driven additional growth in our markets

Investments in product and technology

• Roll-out of many new product features (e.g. restaurant recommendations)
• Improved conversion has driven higher Customer Life Time Value (CLTV) and returns

M&A Update

On track with M&A strategy

• Continued consolidation of markets to focus efforts and resources on strengthening leadership positions

Acquisitions & investments

• Acquisition of hipMenu in Romania with leadership positions in a number of cities and a strong management team
• Acquisition of iFood's online food delivery operations in Argentina to further strengthen our leadership position
• v • Investment in Glovo of €51m, the leading European, ondemand, multi-verticle delivery platform with operations in several markets (incl. Spain, Italy, France)

Divestments

• Divestment of our operations in Brazil to iFood
• Planned divestment of operations in Australia, France and Netherlands

Additional Investment Opportunities

Rationale

• Up to €80m in the second half of 2018, with opportunities expected to continue into 2019 with similar investment levels
• Investments are opportunistic to take advantage of the positive business performance and a larger online delivery market opportunity
• Recent initiatives have shown that we can efficiently increase the number of new customers on our platform
• v • Further strengthen our leadership positions and create long term shareholder value

Areas

• Allocated across marketing, restaurant coverage, technology and product capabilities

Returns

• Identified opportunities with attractive returns
• Incremental revenue from investments in 2018 of €9m in 2018 and €25m in 2019, with continuing future revenues from returning customers

Business Update - Niklas Östberg, CEO

Financial Update - Emmanuel Thomassin, CFO

Outlook - Niklas Östberg, CEO

Q&A

Group: Strong Performance across All Metrics

• Order & GMV growth drivers
• Expansion of marketing opportunity
• Continued roll out of own delivery in MENA & Americas
• Increased restaurant coverage
• Record semi-annual take rate of 15%
• GMV & Revenues affected by the strengthening Euro

• Preliminary adj. EBITDA margin at -15%, on track with management expectations

• 1. Growth rates on a constant currency basis
• Like-for-like, please refer to the "Definitions" slide
• All values in Unit million / € million

Europe: Solid Growth

• 1. Growth rates on a constant currency basis
• Like-for-like, please refer to the "Definitions" slide
• All values in Unit million / € million

MENA: Continuously Outperforming across All Markets

1. Growth rates on a constant currency basis

2. Like-for-like, please refer to the "Definitions" slide

3. All values in Unit million / € million

Asia: Rapid Growth & Improvements in Key Markets

• 1. Growth rates on a constant currency basis
• Like-for-like, please refer to the "Definitions" slide
• All values in Unit million / € million

Americas: Rapid Development in Early Stage Markets

• 1. Growth rates on a constant currency basis
• Like-for-like, please refer to the "Definitions" slide

• All values in Unit million / € million

• Business Update Niklas Östberg, CEO

• Financial Update Emmanuel Thomassin, CFO
• Outlook - Niklas Östberg, CEO
• Q&A

Outlook FY 2018 (1/2)

Adjustments to Revenue Guidance

Comments

• Q1'18 revenue guidance midpoint of €755m (range of €740m to €770m)
• Business has outperformed in Q2'2018 by €26m
• Expected revenues from additional investments in H2'2018 of €9m
• Revenue guidance adjusted for planned divestments estimated at -€20m

• New guidance with narrowed range €760- €780m

• 1. Refers to mid point of guidance
• All values in Unit million / € million

Outlook FY 2018 (2/2)

• Revenues

• Full Year Revenues of €760-€780m adjusted for divestments

• Adj. EBITDA

• Previous guidance of -5% to -8% plus additional investments of up to €80m

Continued focus on Growth and Leadership

APPENDIX

Date	Event
Sep 13th, 2018	Half-Year Report 2018
Nov 7th, 2018	Q3/9M Trading Update 2018

Definitions

• Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants.
• "Like-for-like" figures include foodpanda and exclude the results of our disposed operations in the UK and India. The results of smaller acquisitions and disposals are not adjusted for.
• In 2017, India revenues were €2.3m in Q1, €2.6m in Q2, €2.5m in Q3 and €2.5m in Q4
• Revenues presented for Delivery Hero represent the total segment revenues.

Important Notice

• ALL FINANCIAL FIGURES INCLUDED IN THE FOLLOWING PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE.

• For the purposes of this notice, "presentation" means this document, its contents or any part of it. This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.
• This presentation is neither an advertisement nor a prospectus and should not be relied upon in making any investment decision to purchase, subscribe for or otherwise acquire any securities. The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate Delivery Hero SE. Delivery Hero SE undertakes no obligation to update or revise this presentation. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or any other information discussed verbally, or on its completeness, accuracy or fairness.
• The information in this presentation is of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither Delivery Hero SE nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information.
• The presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE ("Forward-looking Statements"). These Forward-looking Statements can be identified by the use of forwardlooking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "aims", "plans", "predicts", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding Delivery Hero SE's intentions, beliefs or current expectations concerning, among other things, Delivery Hero SE's prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and nor representation or warranty, express or implied, is made regarding future performance. The development of Delivery Hero SE's prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on Delivery Hero SE may differ materially from those made in or suggested by the Forward-looking Statements contained in this presentation or past performance. In addition, even if the development of Delivery Hero SE's prospects, growth, strategies and the industry in which it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of Delivery Hero SE's results, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-Looking Statements only speak as at the date of this presentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoever is accepted by Delivery Hero SE in respect of the achievement of such Forward-looking Statements and assumptions.