Delivery Hero SE

Investor Presentation • Oct 31, 2019

Q3 2019 Trading Update

31st October, 2019

Our Clear Vision

Always delivering an amazing experience

AMAZING ORDERING

AMAZING SERVICE

Agenda

1 Business Update

• 2 Case Studies
• 3 Financial Update
• 4 Outlook
• 5 Summary and Q&A

Q3 2019 Financial Highlights

All values in Unit million / € million and calculated on pro forma basis

YoY GMV and revenue growth calculated on a constant currency pro forma basis

Accelerated Topline Growth

All values in Unit million / € million and calculated on pro forma basis

1. Referring to equal weighted average of last reported pro forma order growth for listed peers: Grubhub: 10% (Q319), Just Eat: 16% (Q319), Takeaway: 21% (Q319, pro forma adjusted assuming weighted order growth of 15% for NL, 21% for DE and 30% for Other Leading Markets respectively), Meituan Food Delivery: 35% (Q219)

2. The group order growth would have been 87% YoY if adjusted for all acquisitions and divestments, mainly related to the acquisition of Zomato UAE which was consolidated from 1st of March 2019

3. YoY GMV and revenue growth calculated on a constant currency pro forma basis

Delivering on Our Promise

Guidance at IPO	Status
Growth as No.1 Priority • >40% in short & mid-term • >30% in the long-term	Outperformance in Q3 with order and revenue growth of 92% and 117% YoY respectively Given stronger cohorts and superior returns expect to reinvest gains from outperformance and achieve above-guidance short-term growth Growing market size and higher frequencies expected to drive above guidance sustainable growth in mid to long-term
Invest for Leadership Further build leadership • positions across the most attractive markets	Secured #1 leadership position in one additional market i.e. Bulgaria. Now market leader in 34 out of 41 markets1 >60m orders per month in more than 4,000 cities >24m own-delivery orders per month (40% of orders) in c. 400 cities
Build Tech & Product Leadership Invest in innovation to build a • third generation on-demand	Roll-out of additional verticals in 6 further markets, now operating in 18 countries

• Launching dark stores in 4 additional markets in MENA in Q4 2019
• Improved logistics efficiency by replacing delivery time estimates with custom-built machine learning algorithms based on proprietary data

platform

Q3 2019 Business Update

Expanded Restaurant Coverage For Better Quantity, Quality & Choice

• Accelerated inventory growth by 82% YoY; now c. 390K restaurants
• Improved customer selection with a diversified restaurant portfolio (only c. 4% orders generated by a single brand)

Technology & Product Innovation Enhancing Customer Experience & Operational Efficiency

• Reached milestone of delivering 1 million orders per day on proprietary global logistics solution
• Delivery time below 30 minutes with faster execution in dense areas
• Improved customer experience with data driven approach and more than 20 billion data points processed per month

Accelerated Customer Acquisitions Further Boosting Growth

• Acquisitions up 100% YoY with faster growth in early stage markets
• Attractive returns on investments, achieving better growth with slightly lower CPAs QoQ
• Investments into customer experience leading to an improved cohort profile i.e. the 2019 cohort shows a 12% higher activity rate¹ vs the 2018 cohort

Better Customer Experience Leads to Superior Cohort Characteristics…

MAJORITY OF ORDERS FROM RETURNING CUSTOMERS

Total Orders per Cohort¹ per Year

• Re-orders account for over 95% of orders
• Once acquired customers require little to no additional marketing to return to the platform
• Newly acquired customers exhibit higher return rates including some voucher incentivized acquisitions

• New and returning customers continue to order more frequently due to an improved offering

• Cohort refers to customers grouped by the calendar year in which they first placed an order with Delivery Hero. Cohort is reflective of the Delivery Hero's current footprint

• 2019 Cohort data is annualized

…Driven by Higher Activity Rates

• Over time we see a strong uplift in activity rates²

• We expect activity rates to continue increasing with service improvements and introduction of additional verticals

• Recently acquired customers exhibit very stable and increasing cohort ordering behavior

• The 2019 cohort shows a 12% higher activity rate vs 2018 cohort

1. Cohorts are based upon current Delivery Hero footprint. Yearly cohorts shown based on monthly cohort of January of that respective year; "Month 1" refers to the month following the month in which a new cohort of active customers (customers who made an order in the last month) ordered for the first time

2. Activity Rates defined as orders divided by active customers; Activity Rates are displayed as a linear function. Average activity rate increase for the respective time frame

Agenda

• 1 Business Update
• 2 Case Studies
• 3 Financial Update
• 4 Outlook
• 5 Summary and Q&A

I. Rapid Growth in Asia – Case Study APAC

Focus on Execution Propelled Hyper Growth

^1. APAC defined as Asia segment ex Korea

^2. Tealive is a Malaysian bubble tea chain; TamJai SamGor TamJai SamGor Mixian is one of Hong Kong's most popular restaurant chains offering rice noodles etc.; Optp is a fast food chain from Pakistan

II. Profitable Own-Delivery – Case Study Saudi Arabia

20

• Since management and logistics overhaul in Q2 2019, KSA operations achieved
  • Higher profit contribution per order for own delivery relative to marketplace
  • Strong top-line growth momentum
  • Over 80% of own-delivery orders

• Implementation of DH proprietary logistics solution in late H1 2019 resulted in

  • Significant reduction in cost per order (CPO) by >€1 QoQ in Q3 2019
  • Circa €15mn savings per quarter in aggregate

• Profit contribution per order (pre discounts) is on a fully loaded basis and includes costs such as rider wages, rider hiring, rider equipment, fleet management, payment & dispatching

(1,0)

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0,5

1,0

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III. Positive EBITDA Markets Account for 50% of Group GMV

At Scale Profitable Markets: 50% of GMV

Close to Break-Even Markets: 25% of GMV

Investment Markets: 25% of GMV

• Significantly increased profitability in "at scale markets"
  • Delivery Hero markets constituting 50% of GMV already reached scale and profitability
  • Best in class markets achieve >50% EBITDA margin as a % of revenues
  • Several markets reached the target of c. 5-8% EBITDA as % of GMV
• "Close to break-even markets" with moderate scale expected to break even in the mid-term
• "Investment markets" featuring accelerated growth with healthy order frequencies, unit economics and acquisition costs, indicating a clear path to long-term profitability

Agenda

• 1 Business Update
• 2 Case Studies
• 3 Financial Update
• 4 Outlook
• 5 Summary and Q&A

Q3 2019 Group Performance

All values in Unit million / € million

YoY growth rates in red are constant currency and in black are reported currency

Included reported current growth rates for Argentina in our constant currency calculation due to the effects of hyperinflation in Argentina

1. Net revenue defined as gross revenues (before subtraction of vouchers) minus delivery costs & cost of food processing

Q3 2019 MENA Performance

• Continued strong order and revenue progression with 58% YoY and 118% YoY growth rates respectively¹
• Own-delivery at 32% of orders
• Generating significant EBITDA contribution to the group

All values in Unit million / € million

YoY growth rates in red are constant currency and in black are reported currency

• 1. MENA order growth would have been 50% YoY if adjusted for all acquisition and divestments Mainly related to the acquisition of Zomato UAE which is consolidated from 1 March 2019
• 1. One off effects in H1 are not expected to be carried forward to H2 2019. The strong underlying performance of the business will allow us to reach significant profits in H2 2019. Adj. EBITDA guidance for the MENA segment is already factoring in the Zomato UAE acquisition that took place in Q1 2019

Q3 2019 Europe Performance

• Strong order growth of 45% YoY
  • Fastest growing European food delivery business amongst publicly listed European peers¹ with EBITDA at break-even²
  • Now leading in 13 out of 14 markets
• Own-delivery at 15% of total orders

All values in Unit million / € million

YoY growth rates in red are constant currency and in black are reported currency

1. Order growth for European publicly listed peers: Just Eat: 16% (Q319), Takeaway: 21% (Q319, pro forma adjusted assuming weighted order growth of 15% for NL, 21% for DE and 30% for Other Leading Markets respectively)

2. Europe Segment EBITDA at break-even excluding group costs

Q3 2019 Asia Performance

• Marked step change in order growth to 212% YoY in Q3 2019 from 115% YoY in Q2 2019 driven by

• Targeted customer acquisition
• City coverage expansion
• Improved customer experience through faster and more reliable delivery and greater restaurant selection
• Own-delivery at 55% of total orders

All values in Unit million / € million

YoY growth rates in red are constant currency and in black are reported currency

Q3 2019 Americas Performance

All values in Unit million / € million

YoY growth rates in red are constant currency and in black are reported currency

1. If adjusted like for like for divestments of Brazil, Peru and Ecuador only

2. Americas revenues and GMV as well as the respective growth rates are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 beginning 1 September 2018. 2018 revenue is retrospectively adjusted. Comparability is affected as prior period information is not restated. In Q3 2019 revenues & GMV have been retrospectively adjusted with a total negative impact of €3.3m and €19.7m respectively

3. Included reported current growth rates for Argentina in our constant currency calculation due to the effects of hyperinflation in Argentina

Agenda

• 1 Business Update
• 2 Case Studies
• 3 Financial Update
• 4 Outlook
• 5 Summary and Q&A

Outlook 2019

2019E Guidance:

Revenues

€1.45bn €1.44bn to €1.48bn

Increased from "top of guidance range of €1.3 to 1.4bn"

-€370m to -€420m Adjusted EBITDA

Expect to be close to the lower end of the guidance range1

• The Europe segment is expected to reach adjusted EBITDA breakeven during Q4 2019
• MENA food delivery business²is expected to generate €65m FY 2019 adjusted EBITDA with €75m expected in H2 2019 nearly compensating for the losses associated with third party logistics change at Hungerstation and Zomato integration in H1 2019

• Outside of the food delivery business, the MENA segment aims to invest into dark stores and virtual restaurants with a net adjusted EBITDA impact of c. negative EUR 20 million. With that, Delivery Hero is expanding its dark stores footprint from 1 to 5 markets and virtual restaurants from 20 to over 100 in Q4 2019

• Group guidance includes accelerated investments of c. €20m allocated across dark stores and virtual restaurants during Q4 2019

• MENA food delivery business defined as MENA segment excluding investments into dark stores and virtual restaurants

Agenda

• 1 Business Update
• 2 Case Studies
• 3 Financial Update
• 4 Outlook
• 5 Summary and Q&A

Delivery Hero at a Glance: Best-in-class Performance and Global Leadership

Q3 2019 Revenue Growth

Significant QoQ reduction in CPO by >€1.0 for owndelivery orders in KSA in Q3 2019

50% of GMV generated from markets that are now profitable

APPENDIX

Adjustments / Pro Forma

• Definitions

• The reported pro forma figures have been retrospectively adjusted for divestments of foodora non-core assets i.e. Australia, France, Italy & Netherlands and Germany
  • Figures have not been adjusted for other acquisitions or divestments that can be found in the table below
• The group order growth would have been 87% YoY if adjusted for all acquisition and divestments, mainly related to the acquisition of Zomato UAE which is consolidated from 1 March 2019.

v • Change in Footprint Since Q3 2018

	Europe	MENA	Asia	Americas
Acquisitions	Hungary (Pizza.hu) Romania (hipmenu) Hungrig (Sweden) Foody (Cyprus)	UAE (Zomato)		Ecuador (Megabite) Uruguay / Bolivia (Netcomidas) Argentina (Delivery Santa Fe) Dominican Republic (Delivery RD)
Divestments	Switzerland (Foodarena) Poland (PizzaPortal) Italy (foodora) France (foodora) Netherlands (foodora) Germany (foodora, pizza.de, Lieferheld)		Australia (foodora)	Brazil (PedidosYa) Peru (Domicilios) Ecuador (Domicilios)

Delivery Hero KPIs (1/2)

				2018	2019
in €m	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1	Q3
Delivery Hero Group
Orders	80.2	86.4	166.6	94.5	108.3	369.4	124.5	144.2	268.8	181.3
% YoY Growth	51.8%	48.3%	50.0%	49.0%	46.7%	48.8%	55.2%	67.0%	61.4%	91.8%
% OD Orders	10.2%	11.9%	11.1%	16.4%	19.5%	14.9%	25.0%	29.9%	27.6%	40.4%
1,2 GMV	970.7	1,041.1	2,011.8	1,119.8	1,322.8	4,454.4	1,507.6	1,684.1	3,191.7	1,971.7
% YoY Growth (Reported currency)	42.5%	40.7%	41.6%	39.7%	45.7%	42.3%	55.3%	61.8%	58.6%	76.1%
% YoY Growth (Constant currency)	59.4%	55.6%	57.4%	46.2%	57.8%	54.7%	56.8%	63.7%	60.4%	73.2%
1,2 Revenue	137.7	154.5	292.2	175.9	218.9	687.0	267.2	314.6	581.7	390.5
% YoY Growth (Reported currency)	56.2%	58.7%	57.5%	65.3%	74.4%	64.6%	94.1%	103.6%	99.1%	122.1%
% YoY Growth (Constant currency)	73.9%	74.0%	74.0%	71.4%	85.5%	76.8%	93.0%	103.0%	98.3%	117.0%
1,2 Adj. EBITDA			-25.0			-100.2			-171.1
% EBITDA Margin			-8.6%			-14.6%			-29.4
MENA
Orders	41.1	44.2	85.4	48.7	56.5	190.6	64.6	70.6	135.2	76.9
% YoY Growth	60.4%	56.5%	58.3%	53.8%	50.9%	54.9%	57.0%	59.7%	58.4%	57.9%
% OD Orders	7.9%	9.4%	8.7%	14.4%	18.6%	13.1%	26.5%	28.3%	27.4%	33.1%
GMV	439.8	479.9	919.7	549.7	630.6	2,099.9	744.8	813.8	1,558.5	927.8
% YoY Growth (Reported currency)	52.4%	53.2%	52.8%	50.1%	56.9%	53.3%	69.3%	69.6%	69.5%	68.8%
% YoY Growth (Constant currency)	76.6%	74.6%	75.6%	64.7%	66.3%	69.9%	69.6%	70.0%	69.8%	62.1%
Revenue	56.6	66.7	123.3	85.0	108.1	316.4	143.9	164.3	308.2	193.2
% YoY Growth (Reported currency)	91.5%	103.8%	97.9%	103.4%	119.7%	106.4%	154.1%	146.4%	149.9%	127.4%
% YoY Growth (Constant currency)	121.5%	130.1%	126.1%	117.6%	126.5%	123.9%	146.8%	141.2%	143.8%	117.9%
Adj. EBITDA			9.0			18.1			-9.7
% EBITDA Margin			7.3%			5.8%			-3.1%
Europe
Orders	13.8	14.6	28.4	14.3	17.5	60.3	19.2	20.8	39.9	20.7
% YoY Growth	37.9%	39.1%	38.5%	43.5%	44.6%	41.4%	38.5%	42.1%	40.4%	44.5%
% OD Orders	6.1%	6.4%	6.2%	7.8%	8.5%	7.3%	10.2%	13.1%	11.7%	14.8%
GMV	173.1	173.2	346.3	174.8	213.4	734.5	232.0	248.6	480.6	258.4
% YoY Growth (Reported currency)	34.8%	31.4%	33.1%	33.7%	36.4%	34.2%	34.1%	43.5%	38.8%	47.8%
% YoY Growth (Constant currency)	35.7%	32.8%	34.2%	36.1%	37.9%	35.7%	35.4%	44.7%	40.0%	48.8%
Revenue	27.4	27.4	54.8	27.6	33.6	115.9	37.0	41.3	78.2	42.7
% YoY Growth (Reported currency)	29.1%	25.1%	27.1%	28.5%	34.8%	29.6%	34.9%	50.7%	42.8%	55.0%
% YoY Growth (Constant currency)	30.6%	26.8%	28.7%	31.1%	36.5%	31.5%	36.6%	52.2%	44.4%	56.4%
Adj. EBITDA			-0.9			-15.4			-9.6
% EBITDA Margin			-1.6%			-13.3%			-12.3%

1. Americas revenues and GMV are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 beginning 1 September 2018. 2018 revenue is retrospectively adjusted. Comparability is affected as prior period information is not restated.

2. Included reported current growth rates for Argentina in our constant currency calculation due to the effects of hyperinflation in Argentina

Delivery Hero KPIs (2/2)

	2018					2019
in €m	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1	Q3
Asia
Orders	17.6	18.7	36.3	21.9	24.4	82.6	30.4	40.2	70.6	68.1
% YoY Growth	53.8%	46.9%	50.2%	50.6%	48.6%	49.8%	73.0%	114.8%	94.6%	211.6%
% OD Orders	19.4%	21.8%	20.6%	25.7%	27.5%	24.0%	29.3%	38.8%	34.7%	54.6%
GMV	261.7	280.0	541.7	317.4	354.5	1,213.7	416.3	479.0	895.3	654.2
% YoY Growth (Reported currency)	41.4%	39.8%	40.6%	50.4%	43.2%	43.8%	59.1%	71.1%	65.3%	106.1%
% YoY Growth (Constant currency)	52.7%	45.7%	49.0%	48.7%	42.0%	46.9%	54.3%	72.5%	63.7%	106.6%
Revenue	39.9	44.7	84.6	50.8	57.1	192.5	66.7	83.0	149.7	126.4
% YoY Growth (Reported currency)	44.7%	44.2%	44.4%	63.2%	52.1%	51.3%	67.3%	85.7%	77.0%	148.8%
% YoY Growth (Constant currency)	56.4%	50.2%	53.1%	61.3%	50.4%	54.3%	61.4%	84.9%	73.8%	146.0%
Adj.EBITDA			-15.0			-51.9			-94.6
% EBITDA Margin			-17.7%			-27.0%			-63.2%
Americas
Orders	7.7	8.8	16.5	9.6	9.8	36.0	10.4	12.6	23.1	15.6
% YoY Growth	33.8%	31.1%	32.4%	32.6%	25.9%	30.6%	35.5%	43.8%	39.9%	61.6%
% OD Orders	9.5%	12.9%	11.3%	18.6%	24.2%	16.8%	30.2%	37.6%	34.3%	48.5%
1,2 GMV	96.1	108.0	204.2	77.9	124.3	406.3	114.5	142.7	257.2	131.2
% YoY Growth (Reported currency)	21.1%	14.3%	17.4%	-16.9%	22.0%	10.0%	19.1%	32.1%	26.0%	68.4%
% YoY Growth (Constant currency)	51.0%	45.8%	48.1%	-17.5%	93.4%	44.0%	44.0%	43.7%	43.8%	70.6%
1,2 Revenue	13.8	15.8	29.6	12.5	20.1	62.1	19.6	26.1	45.7	28.2
% YoY Growth (Reported currency)	40.7%	34.3%	37.2%	4.0%	45.4%	31.2%	42.5%	65.0%	54.5%	125.2%
% YoY Growth (constant currency)	73.1%	68.5%	70.6%	8.4%	123.8%	70.3%	75.7%	80.4%	78.2%	126.6%
1,2 Adj. EBITDA			-18.0			-50.9			-57.2
% EBITDA Margin			-60.8%			-81.6%			-125.2%

1. Americas revenues and GMV are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 beginning 1 September 2018. 2018 revenue is retrospectively adjusted. Comparability is affected as prior period information is not restated.

2. Included reported current growth rates for Argentina in our constant currency calculation due to the effects of hyperinflation in Argentina

Definitions

• Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants
• Revenues presented for Delivery Hero represent the total segment revenues prior to discounts.
• Net Revenue defined as gross revenues (before subtraction of vouchers) minus delivery costs & cost of food processing.
• Constant currency provides an indication of the business performance by removing the impact of foreign exchange rate movements. Due to hyperinflation in Argentina we have included reported current growth rates for Argentina in our constant currency calculation to provide a more accurate picture of the underlying business
• IAS 29 Hyperinflation Economies applies to our Argentinian operations beginning 1 September 2018 and impacts our Americas revenues and GMV. 2018 revenue is retrospectively adjusted and comparability is affected as prior period information is not restated.
• IFRS 16 has been adopted as of 1 January 2019
• Activity Rates defined as orders divided by active customers; Activity Rates are displayed as a linear function. Average activity rate increase for the respective time frame

Important Notice

• ALL FINANCIAL FIGURES INCLUDED IN THE 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.