Investor Presentation • Apr 28, 2022
Investor Presentation
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Table of contents
Overview
Outlook
Appendix





Note: Management estimates
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GMV from 2021 Cohort
Base
Base
3.3x
3.5x
3.0x
1.9x
Numbers compare the GMV of a given cohort in the respective year with the GMV of the same cohort in the previous year

1.7x
Total GMV per cohort per year Cumulative order frequency by annual cohort
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Existing cohorts have strong loyalty and order more frequently over time
New cohorts usually exhibit a higher order frequency than previous cohorts
The cohort acquired in 2020 showed an exceptionally strong first year due to COVID lockdowns

(*) Markets ranked in terms of average monthly orders per capita
General assumptions: (1) Total population (DH + Glovo) at 2.2bn; (2) AOV held constant at €14
Estimated impact on growth assuming no further COVID outbreak (high level estimates)

Note: Impact of pandemic on GMV growth as per management estimates. Implied "normalised" growth represents the expected growth rate as if the pandemic and related consumer behaviour had not occurred, based on management estimates
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Table of contents
Overview
Outlook
Appendix


Strong GMV development of +31% YoY and Total Segment Revenue growth of +52% YoY

Record high contribution margin in own-delivery after vouchers

Profitability levers: Minimum order value and dynamic pricing introduced in 90% of our markets Service fee successfully tested and to be rolled out in selected countries

Break-even on adj. EBITDA level in the Asia Platform business before group costs in March

Successful roll-out of new pricing in South Korea with positive impact on unit economics ahead Promising first results from our subscription offering pandapro in APAC

Issued term loan equivalent to €1.0bn boosting our pro-forma cash position to €3.5bn (end of FY21) Additional flexibility through revolving credit facility of €375m

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Roll-out of basket size and delivery fee initiatives pushes AOV by >10% in Q1 2022
Strong progress in South Korea with GMV growth ahead of expectations. Successful introduction of new pricing for Baemin 1 to generate positive unit economics
Ramp-up of subscription service in Taiwan and Hong Kong strengthening our leadership positions
Thailand reorg completed: positive gross profit after vouchers in Jan, ramp-up of pandapro and participation in government payment scheme starting in Q2 2022
Reached break-even on adj. EBITDA level in Asia Platform business before group costs in March

Healthy customer behavior resulted in strong GMV growth of +37% YoY (CC) at Talabat. Ad sales already at 2.3% of GMV in Q1 2022
Higher penetration of vendor funded deals solidifies Hungerstation's strong leadership in Saudi Arabia
Migration to Pandora platform in Turkey should improve customer experience and enable us to gain more traction
Very strong GMV growth of more than 100% YoY in our growth markets Egypt, Jordan and Iraq
Note: YoY growth rates in red are reported currency and in black are constant currency. CC refers to constant currency
MENA revenues, adjusted EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Lebanese operations qualifying as hyperinflationary economy according to IAS 29 beginning October 2020. In Q1 2022, GMV & revenues have been retrospectively adjusted with a total impact of +€1.1m and +€0.0m, respectively

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

Focus on basket size levers (minimum order value, cross-selling, delivery fees) propels average order value by 19% YoY
Gross profit per order in Americas on . Argentina on the verge of break-even on adj. EBITDA3 level while asserting strong leadership
Service fee successfully tested in Chile and Argentina. Roll-out planned for the
Subscription pilots to be launched in
Note: YoY growth rates in red are reported currency and in black are constant currency
Americas revenues, adjusted EBITDA, Gross Merchandise Value (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. In Q1 2022 GMV & revenues have been retrospectively adjusted with a total impact of +€6.5m and +€2.4m, respectively
Includes reported current growth rates for Argentina in the constant currency calculation due to the effects of hyperinflation in Argentina
Adjusted for hyperinflation
Before central cost allocation

Planned deceleration in Dmart openings: launch of 48 new stores in Q1 compared to + 213 stores in Q4, with a total of 1,122 at the end of March
Basket size soared by more than 20% in Q1 2022 to €13.7 due to constant improvement of product assortment
operations lead to constant improvement in gross profit margins
Integrated Verticals revenues, adjusted EBITDA, Gross Merchandise Value (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. In Q1 2022 GMV & revenues have been retrospectively adjusted with a total impact of +€0.2m and +€0.2m, respectively. The agent business with local vendors is captured in the platform business segments. DH Kitchens is capturing various types of kitchen models
Note: YoY growth rates in red are reported currency and in black are constant currency
Contribution margin1of own-delivery (before voucher costs2 ) as % of GMV Values excluding Delivery Hero Korea and not yet including Woowa

Contribution margin in own-delivery of more than 6%. Further margin expansion expected throughout the remainder of the year
Contribution margin in MENA has slightly improved and Europe turned positive since the scale-down of Germany
New pricing for own delivery in South Korea will have positive impact on contribution margin. Woowa numbers not integrated, yet
1. Contribution margin relates to Platform business and includes the costs of the physical delivery of the order as well as the transmission and support costs of the order (i.e. payment costs, dispatching costs, customer support). The contribution margin shown above differs from IFRS gross profit, because the former excludes certain non-commission revenue like advertising revenues, whereas the latter excludes i.e. customer support costs, bad debt expenses and includes voucher costs
Contribution margin1of own-delivery (after voucher costs2 ) as % of GMV Values excluding Delivery Hero Korea and not yet including Woowa

1. Contribution margin relates to Platform business and includes the costs of the physical delivery of the order as well as the transmission and support costs of the order (i.e. payment costs, dispatching costs, customer support). The contribution margin shown above differs from IFRS gross profit, because the former excludes certain non-commission revenue like advertising revenues, whereas the latter excludes i.e. customer support costs, bad debt expenses and includes voucher costs

Building a network to peer companies and exploring ways to collaborate, extending our know-how or driving consolidation
Already generated very attractive returns in the double-digit and sometimes even in the triple-digit percentages
Partial sale of stake in Rappi worth \$250m in January 2022. DH continues to hold an approx. stake of 5% in Rappi on a fully diluted basis
Additional source of future liquidity if and when desired
Market value for private assets is based on the valuation of the last funding round. Market capitalization of public companies is based on publicly available data. Data as of April 2022
The closing of the Glovo transaction is subject to certain customary conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur early in the third quarter of 2022. Until such closing, we will continue to hold approx. 44.5% stake in Glovo, on a non-diluted basis, which is accounted as minority investment
This includes the share in Rappi after the partial sale in January 2022

Successfully completed syndication of term loan equivalent to €1.0bn1 with maturity of 5.25 years
Revolving credit facility of €375m gives additional flexibility
Pro-forma cash and cash equivalents at €3.5bn2 at the end of FY 2021
Note: Adjusted EBITDA on this slide is based on IFRS accounting and deviates from the adjusted EBITDA on pro-forma basis.
Based on USD exchange rate at April 1, 2022
Cash and cash equivalents at December 31, 2021 includes €5m of restricted cash. No pro forma adjustments made for Glovo or partial disposal of Rappi stake in January 2022 (\$250m)
Figures are rounded, so that minor discrepancies may occur through the addition of these amounts
Table of contents
Overview
Outlook
Appendix





| Current: | Best-in-class | Dmarts overall |
||
|---|---|---|---|---|
| Incl. 7 countries | Incl. 42 countries | |||
| Daily orders per store | 540 | 244 | ||
| Average basket value (vs. Platform) |
120% | 121% | ||
| % Free delivery orders | 11.1% | 21.7% | ||
| Delivery time (min) | 25.4 | 21.5 | ||
| Listed SKUs per store | 5.2k | 3.2k | ||
| Items per order | 8.5 | 8.0 |
Relevant gaps to profitability can be improved through increased scale and business maturity
| TodayCurrent: | Dmarts overall |
|||
|---|---|---|---|---|
| Incl. 7 countries | Incl. 42 countries | |||
| Product margin | 25.0% | 26.7% | ||
| Delivery fee | 7.5% | 6.2% | Other costs | |
| Advertising revenue1 | 2.5% | 2.0% | includes shrinkage, |
|
| Delivery cost | (18.2)% | (22.8)% | packaging, and others |
|
| Picker cost | (3.9)% | (7.9)% | ||
| Other costs | (4.0)% | (10.4)% | ||
| Gross Profit | 8.9% | (6.3)% | ||
| Vouchers | (2.3)% | (5.7)% | ||
| Gross profit after vouchers | 6.6% | (12.0)% |
Note: Data from January 2022. Unit economics percentages calculated based on revenue. Delivery costs and gross profit adjusted for intercompany charges. Other fixed costs include distribution centres, store managers, utilities and store maintenance.





Cost-per-click (CPC): various premium listing options to increase restaurant visibility on the platform. Automatic renewal of monthly ad booking. Vendor only pays if customer clicks on ad

Joker: pop-up banner with discounted offers displayed to customers. Restaurant only pays per order, tool highly focused towards new customer acquisition
| ःदि | |
|---|---|
Other products: Featured products highlights particular dishes in a restaurant's portfolio; banner advertising, etc.

Subscription


pandapro customers benefit from free delivery, discounts and attractive deals both in food delivery and quick commerce
Subscribers exhibit significantly higher order frequency and buy larger baskets. More users are converging from monthly to half-yearly or yearly subscription
pandapro was launched in early 2021 in APAC and quickly gained traction. For 2022, we plan to roll out subscription services also to other regions

pandapro APAC
Table of contents
Overview
Outlook
Appendix


Platform business corresponds to the four regional segments of Delivery Hero Group (Europe, MENA, Asia and Americas) including group costs. The Integrated Verticals segment is not part of the Platform business
For a better comparability, the numbers presented here exclude Germany and Japan

Platform business corresponds to the four regional segments of Delivery Hero Group (Europe, MENA, Asia and Americas) including group costs. The Integrated Verticals segment is not part of the Platform business.
The closing of the Glovo transaction is subject to certain customary conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur early in the third quarter of 2022.
| Costs and margins (in % of GMV) |
FY 2021 | Long-term range | Main components | Selected levers | |
|---|---|---|---|---|---|
| Gross Profit | 5.1% | 10% to 13% | Revenues: Commission, delivery ▪ fees, service fee, advertising, subscription, Dmart products |
Increase average order value ▪ ▪ Increase delivery fee Add service fee ▪ ▪ Rider utilization Increased stacking ▪ |
|
| Gross Profit (excl. Woowa) |
▪ 7.2% 11% to 13% (3.5)% ~(3)% (3.4)% ~(3)% (1.7)% 5% to 8% |
Costs: Delivery costs, payment fees, server hosting, POS systems, rider equipment, picker |
Better supplier terms ▪ Subscription ▪ ▪ Advertising Reduce payment fees ▪ ▪ Dynamic pricing |
||
| Marketing | Customer acquisition and retention costs, overhead, others |
Assumes continued high spending as we are early stage in most markets. Best-in-class markets below 1.5% |
|||
| Opex and others |
General & administrative expenses, IT expenses, restaurant acquisition costs, R&D |
Scale and automation while still investing in being leading tech player. Best-in-class markets below 1.5% |
|||
| Adjusted EBITDA |
Table of contents
Overview
Outlook
Appendix

| 2021 | |||||||
|---|---|---|---|---|---|---|---|
| in €m |
Q 1 |
Q 2 |
H1 | Q 3 |
Q 4 |
F Y |
Q 1 |
| Delivery Hero Group | |||||||
| GMV | 7.769.7 | 8.388.8 | 16.158.5 | 9.562.6 | 9.640.4 | 35.361.5 | 10.145.8 |
| % YoY Growth (RC) | 83.2% | 74.2% | 78.4% | 64.8% | 38.8% | 62.2% | 30.6% |
| % YoY Growth (CC) | 92.2% | 80.8% | 86.1% | 64.6% | 39.8% | 65.6% | 31.3% |
| Total Segment Revenue | 1.351.6 | 1.549.9 | 2.901.6 | 1.788.7 | 1.918.5 | 6.608.8 | 2.051.0 |
| % YoY Growth (RC) | 114.1% | 104.6% | 108.9% | 89.0% | 66.5% | 89.5% | 51.7% |
| % YoY Growth (CC) | 127.0% | 115.1% | 120.5% | 89.9% | 65.9% | 94.1% | 50.6% |
| Intersegment consolidation1 | (19.2) | (35.2) | (54.5) | (38.0) | (42.8) | (135.2) | (46.2) |
| Adj. EBITDA | (332.3) | (780.6) | |||||
| EBITDA Margin % (GMV) | -2.1% | -2.2% | |||||
| Asia | |||||||
| GMV | 5.129.4 | 5.588.6 | 10.718.0 | 6.659.9 | 6.529.2 | 23.907.0 | 6.948.7 |
| % YoY Growth (RC) | 83.2% | 68.2% | 75.0% | 72.1% | 40.1% | 63.1% | 35.5% |
| % YoY Growth (CC) | 88.3% | 71.0% | 78.9% | 70.0% | 40.8% | 64.4% | 34.9% |
| Segment Revenue | 620.1 | 720.2 | 1.340.4 | 853.7 | 876.6 | 3.070.7 | 928.0 |
| % YoY Growth (RC) | 113.2% | 84.2% | 96.6% | 89.7% | 61.8% | 83.5% | 49.6% |
| % YoY Growth (CC) | 121.5% | 90.2% | 103.5% | 88.4% | 60.6% | 85.6% | 46.7% |
| Adj. EBITDA | (202.2) | (396.6) | |||||
| EBITDA Margin % (GMV) | -1.9% | -1.7% | |||||
| MENA | |||||||
| GMV | 1.537.7 | 1.617.3 | 3.155.0 | 1.763.4 | 1.837.5 | 6.755.9 | 1.932.4 |
| % YoY Growth (RC) | 60.7% | 96.7% | 77.4% | 46.2% | 36.1% | 55.8% | 25.7% |
| % YoY Growth (CC) | 83.2% | 123.8% | 102.0% | 52.0% | 38.9% | 68.4% | 31.7% |
| Segment Revenue | 325.5 | 359.3 | 684.9 | 418.5 | 459.6 | 1.562.9 | 491.1 |
| % YoY Growth (RC) | 60.9% | 116.6% | 86.0% | 70.0% | 64.2% | 74.8% | 50.9% |
| % YoY Growth (CC) | 79.4% | 142.4% | 107.8% | 74.2% | 63.2% | 84.6% | 49.8% |
| Adj. EBITDA | 65.0 | 105.7 | |||||
| EBITDA Margin % (GMV) | 2.1% | 1.6% |
Note: For Group, MENA, Americas and Integrated Verticals, revenues, adjusted EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentinian and/or Lebanese operations qualifying as hyperinflationary economies according to IAS 29 beginning 1 September 2018 and October 2020 respectively. RC = Reported Currency / CC = Constant Currency
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| 2021 | |||||||
|---|---|---|---|---|---|---|---|
| in €m |
Q 1 |
Q 2 |
H1 | Q 3 |
Q 4 |
F Y |
Q 1 |
| Europe | |||||||
| GMV | 682.4 | 718.7 | 1.401.1 | 625.9 | 713.7 | 2.740.7 | 706.6 |
| % YoY Growth (RC) | 112.9% | 71.0% | 89.1% | 46.8% | 25.1% | 57.7% | 3.5% |
| % YoY Growth (CC) | 112.6% | 68.3% | 87.5% | 45.8% | 24.0% | 56.4% | 3.6% |
| Segment Revenue | 136.6 | 149.3 | 285.9 | 132.7 | 152.8 | 571.4 | 155.0 |
| % YoY Growth (RC) | 137.5% | 96.3% | 114.0% | 65.2% | 40.0% | 76.9% | 13.5% |
| % YoY Growth (CC) | 136.5% | 92.0% | 111.2% | 63.6% | 38.2% | 74.7% | 13.7% |
| Adj. EBITDA | 1.0 | (34.9) | |||||
| EBITDA Margin % (GMV) | 0.1% | -1.3% | |||||
| Americas | |||||||
| GMV | 420.1 | 464.3 | 884.4 | 513.4 | 559.9 | 1.957.8 | 558.1 |
| % YoY Growth (RC) | 159.2% | 86.1% | 114.9% | 70.4% | 53.9% | 81.8% | 32.8% |
| % YoY Growth (CC) | 172.6% | 90.9% | 123.0% | 71.8% | 54.0% | 85.4% | 31.0% |
| Segment Revenue | 107.0 | 119.9 | 226.9 | 131.9 | 150.7 | 509.6 | 149.3 |
| % YoY Growth (RC) | 182.8% | 109.6% | 138.8% | 82.1% | 67.7% | 98.0% | 39.4% |
| % YoY Growth (CC) | 196.7% | 114.7% | 147.4% | 83.4% | 67.9% | 101.6% | 37.6% |
| Adj. EBITDA | (80.2) | (157.5) | |||||
| EBITDA Margin % (GMV) | -9.1% | -8.0% | |||||
| Integrated Verticals | |||||||
| GMV | 190.7 | 250.3 | 440.9 | 310.9 | 347.2 | 1.099.1 | 410.0 |
| % YoY Growth (RC) | 317.4% | 246.2% | 273.8% | 199.6% | 133.1% | 196.5% | 115.0% |
| % YoY Growth (CC) | 354.8% | 271.2% | 303.6% | 204.1% | 137.9% | 209.1% | 121.6% |
| Segment Revenue | 181.6 | 236.4 | 418.0 | 289.8 | 321.6 | 1.029.4 | 373.8 |
| % YoY Growth (RC) | 314.6% | 237.3% | 267.0% | 183.8% | 127.4% | 188.0% | 105.9% |
| % YoY Growth (CC) | 351.7% | 263.3% | 297.3% | 187.6% | 131.4% | 200.3% | 111.4% |
| Adj. EBITDA | (115.8) | (297.2) | |||||
| EBITDA Margin % (GMV) | -26.3% | -27.0% |
GMV is accounted for in the respective Platform segments and shown in the Integrated Verticals segment for illustrative purposes only
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Christoph Bast Head of IR [email protected]

Bruno Priuli Director IR

Dennis Bader Director IR [email protected]

Laura Hecker Manager IR [email protected]

Sonia Premi Executive Assistant
T: +49 (0)30 54 4459 105 Oranienburger Straße 70, 10117 Berlin, Germany
ir.deliveryhero.com

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