Delivery Hero SE

Investor Presentation • Nov 10, 2022

Q3 2022 Trading Update

10 November 2022

Table of contents

Overview

• Financial Update
• Path to Profitability

Outlook

Appendix

OUR VISION

Always delivering an amazing experience

Fast, easy, and to your door

Successful closing of Glovo transaction further strengthens our global leadership position in food delivery and quick commerce

Table of contents

Overview

• Financial Update
• Path to Profitability

Outlook

Appendix

Q3 2022 key highlights

Maintained healthy GMV growth of 12% YoY despite difficult COVID comps. All segments outside Asia combined grew by >30% YoY in Q3 2022

AdTech1 revenue growing ∼70% YoY and on path to generate >€2bn in FY24/25

Strong cost control and execution on profitability levers leading to >€200m improvement in quarterly adj. EBITDA since Q4 2021, when the push for profitability started

Profitable markets in Platform business now on >€800m adj. EBITDA run-rate (incl. central Group costs) and on track to reach €1.0bn adj. EBITDA run-rate in Q4 2022

Started deleveraging process and completed €85m partial buyback of 2024 convertible bonds in Sep. Announced today an additional buyback of up to €80m of 2024 bonds (∼10% of €790m now outstanding)

Healthy Group GMV and revenue growth continues in Q3 2022

1. Total Segment Revenue is defined as revenue in accordance with IFRS 15, excluding the effect of vouchers and other discounts. Difference between total segment revenue and the sum of segment revenues is mainly due to intersegment consolidation adjustments for services charged by the Platform Businesses to the Integrated Verticals Businesses (Q3 2022: -€53.8m). All values including Woowa and excluding Delivery Hero Korea. From Q1 2021 onwards, all values include Glovo on a pro-forma basis

2. Includes reported current growth rates for Argentina, Lebanon and Turkey in the constant currency calculation due to the effects of hyperinflation in Argentina, Lebanon and Turkey RC=Reported Currency / CC=Constant Currency

Stable cohort behavior in a post-pandemic environment

§ During COVID order frequency has increased significantly – and remains clearly above pre-pandemic levels

§ Our top 15 markets represent >80% of our current GMV and will continue to show healthy GDP growth in 2023

Q3 2022 Asia Platform business

Key Highlights

• § Difficult comparable numbers for Asia due to COVID boost in Q3 2021 and focus on profitability. GMV in Korea grew 6% QoQ in Q3 2022 despite unfavorable weather
• § Subscription continues to gain traction, with now 1.4 million subscribers in APAC
• § Further progress with the roll-out of services fees, now live in 8 countries
• § Positive adj. EBITDA in the mid doubledigit million Euro range in Q3 2022 (after allocation of central Group costs)

Q3 2022 MENA Platform business

Key Highlights

• § Strong GMV trajectory driven by higher volume, growing baskets and Turkey back to sequential growth
• § Advertising revenues further developed in the region. The best-in-class country already at 3.5%
• § Adj. EBITDA in the most profitable MENA countries (representing ∼70% of segment GMV) grew to €75m in Q3 2022. Adj. EBITDA margin now at 4.5% of GMV (incl. central Group costs)

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

MENA revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by operations in Lebanon and Turkey qualifying as hyperinflationary economies according to IAS 29. In Q3 2022, GMV & revenues have been retrospectively adjusted with a total impact of +€28.2m and +€2.3m, respectively.

1. Includes reported current growth rates for Lebanon and Turkey in the constant currency calculation due to the effects of hyperinflation.

Key Highlights

• § Europe excl. Glovo accelerated GMV growth to 13% YoY in Q3 2022
• § Glovo grew GMV by 40% YoY while improving adj. EBITDA in Q3 2022
• § Advertising revenues gaining further traction with revenues growing ∼50% YoY in Q3 2022 (excl. Glovo)

• § Segment Revenue YoY growth impacted by introduction of rider-agent model in Spain in Q4 2021 (excl. delivery fees and rider costs)

• The European Platform financials presented on this slide include Glovo on a Like-for-Like basis as if Glovo would have been acquired on 1 January 2021

Q3 2022 Americas Platform business

Key Highlights

• § Strong GMV growth due to continued AOV expansion, enhanced customer targeting and solid volume development
• § Service fee recently launched in Argentina and currently being tested in 5 markets in Central America
• § Gross profit margin further improved, gaining 2.1 percentage points YoY

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

Americas revenues, adj. 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. In Q3 2022 GMV and Segment Revenue have been retrospectively adjusted with a total impact of +€72.8m and +€16.9m, respectively. 1. Includes reported current growth rates for Argentina in the constant currency calculation due to the effects of hyperinflation in Argentina

12

Key Highlights

• § GMV grew 55% YoY despite slowdown of store expansion and increased focus on profitability
• § Average order value grew considerably in Q3 2022 due to basket size initiatives, better product assortment and healthy customer demand
• § Progressed on our global footprint review and optimization with 60 net store closures during the quarter. At the end of Q3 2022: total of 1,197 Dmarts, incl. the stores from Glovo and the Mouhalis Group2

Integrated Verticals revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by operations in Argentina and Turkey qualifying as hyperinflationary economies according to IAS 29. In Q3 2022, GMV & revenues have been retrospectively adjusted with a total impact of +€10.7m and +€6.4m, respectively.

• 1. The Integrated Verticals business includes Glovo on a Like-for-Like basis as if Glovo would have been acquired on 1 January 2021
• 1. In Q3 2022, we acquired certain assets based in Greece from the Mouhalis Group.

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

Fully loaded contribution margin on a new record high

Contribution margin1 of own-delivery (after voucher costs2) as % of GMV Values including Woowa since Q1 2022 and excl. Delivery Hero Korea & Glovo

Key Highlights

• § Constant improvement in profitability results in new record high of fully loaded contribution margin (after vouchers) in Q3 2022
• § AdTech helped to achieve NCR revenue run-rate of >€650m in Q3 2022, on track to reach >€2bn by FY2024/25
• § Voucher intensity continued to decline to 1.9% compared to 2.0% in Q2 2022 (as % of GMV)

• § Less vouchering in Europe and Americas QoQ and slightly higher investments in APAC and MENA

• Voucher costs correspond to marketing initiatives to incentivize the acquisition of new users or the retention of existing users

^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

Table of contents

Overview

• Financial Update
• Path to Profitability

Outlook

Appendix

Path to profitability

• § Profitable Platform business
• § Unprofitable Platform business
• § Integrated Verticals
• § Group

On track to reach € 1bn adj. EBITDA run-rate in Q4 2022

• § Adj. EBITDA for the profitable Platform countries grew materially faster than expected in Q3 2022
• § In Q4 2022, we expect to achieve €1bn adj. EBITDA run-rate (€250m quarterly) despite slightly softer growth

• § Profitable countries expected to generate adj. EBITDA of >€450m in H2 2022 versus previous guidance of >€400m

• Adj. EBITDA on a profitable countries level within Delivery Hero's Platform business (countries expected to be profitable in FY 2022). Numbers are after allocation of central group costs

Robust outlook for profitable Platform business

Adj. EBITDA in the profitable Platform1 business 1 ^{2 3 4} Q4 2022E run-rate adj. EBITDA Q4 2023E run-rate adj. EBITDA 1 Continued EBITDA expansion of existing profitable countries from today's >10 2 Addition of 2-4 profitable Glovo countries 3 Conversion of another 6 unprofitable countries to profitability in 2023 4 Beneficial impact of operating leverage on corporate overhead ~€1bn >€1.25bn

2023 and beyond

• § Adj. EBITDA run-rate of our profitable Platform business expected to expand by >25% in 2023, driven primarily by EBITDA growth in profitable countries and countries moving to profitability
• § Profitable Platform businesses to generate >€1.25bn EBITDA run-rate in Q4 2023
• § Continued diversification and doubledigit growth expected over the next years

Path to profitability

• § Profitable Platform business
• § Unprofitable Platform business
• § Integrated Verticals
• § Group

Constant reduction of negative adj. EBITDA contribution

Adj. EBITDA (in €m) for the unprofitable Platform business1 Comment

Adj. EBITDA/GMV margin

• § Significant improvement in adj. EBITDA as markets scale. Adj. EBITDA margin to reach -3% in Q4'23
• § Unprofitable platform markets consists of:
• § Start-up markets: Very early-stage countries. Strong market position but too early to claim leadership. Small absolute amount of losses. ~15% of unprofitable markets GMV
• § Leadership: Very high growth. Significant amount of investments as we are still early stage. 75% of unprofitable markets GMV
• § Second place: Roughly 10% of unprofitable markets GMV. Encouraging discussions with several potential partners for consolidation

Decomposing our long-term margin targets

Q3 2022 figures

(in % of GMV)	Profitable countries	Unprofitable countries	Long-term range	Comments
GMV (€)	c.7bn	c.4bn	-	Unprofitable countries are mostly early stage with >10x growth § opportunity Size of opportunity much larger in unprofitable countries, but still § smaller in size and growing faster
Gross Profit	6.3%	7.5%	10% to 13%	Still room to develop both further §
Marketing	(1.0)%	(6.4)%	~(3)%	Significant marketing investments to grow scale to reach § operational leverage
Opex and others	(2.3)%	(6.9)%	~(3)%	Operational leverage to be achieved through further growth § Current Opex development to be kept flat (in absolute numbers) §
Adj. EBITDA	3.0%	(5.8)%	5% to 8%	With current Gross Profit, Opex and marketing levels, § unprofitable markets would break even with less than twice the current GMV Revenue growth combined with strict cost control will drive § adj. EBITDA towards the long-term margin range

Path to profitability

• § Profitable Platform business
• § Unprofitable Platform business
• § Integrated Verticals
• § Group

Dmarts continue to improve their profitability, trending towards break-even

• § Dmarts represent ~75% of losses in the Integrated Verticals segment
• § Gross profit margin has improved by 10 percentage points during the last 4 quarters and is expected to become positive during FY 2023

Path to profitability

• § Profitable Platform business
• § Unprofitable Platform business
• § Integrated Verticals
• § Group

Material earnings improvement ahead

Table of contents

Overview

• Financial Update
• Path to Profitability

Outlook

Appendix

	Updated guidance FY 2022	Previous guidance FY 2022
	Delivery Hero incl. Glovo1	Delivery Hero incl. Glovo1
GMV GMV	Lower end of €44.7bn to €46.9bn	€44.7bn to €46.9bn
Total Segment Total segment revenue Revenue	Lower end of €9.8bn to €10.4bn	€9.8bn to €10.4bn
Adj. EBITDA Adj. EBITDA	-1.4% to -1.5% of GMV	-1.5% to -1.6% of GMV
of which:	Platform excl. Glovo: positive adj. EBITDA Integrated Verticals: negative €380 to €400m Glovo: up to negative €300m	Platform excl. Glovo: positive adj. EBITDA Integrated Verticals: up to negative €475m Glovo: up to negative €300m
	Adj. EBITDA below the mid-point of the €40 to €120m range for Platform business incl. Glovo in Q4 2022	Adj. EBITDA of €40 to €120m for Platform business incl. Glovo in Q4 2022

Delivery Hero expects a positive adj. EBITDA/GMV margin (incl. Glovo) of >0.5% in FY 2023 and is committed to reach free cash flow break-even during H2 2023

Note: Glovo's Platform business is reported in Delivery Hero's Europe segment. Glovo's Dmart business is reported in Delivery Hero's Integrated Verticals segment 1. On a pro-forma basis, including Glovo since January 2022. On an IFRS basis Glovo to be consolidated from July 2022 onwards

Confirming our 2030 ambitions

By 2030, we plan to grow our GMV substantially, invest in tech & innovation to further expand our leadership as the #1 delivery player globally, and achieve highly attractive margins and cash flows

Table of contents

Overview

• Financial Update
• Path to Profitability

Outlook

Appendix

Delivery Hero KPIs (Pro Forma Data)

in €m Delivery Hero Group GMV	2021						2022
	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1	Q3
	8.352.7	8.992.3	17.345.0	10.197.9	10.433.9	37.976.9	11.035.3	10.776.3	21.811.6	11.449.4
% YoY Growth (RC)	-	-	-	-	-	-	32.1%	19.8%	25.8%	12.3%
% YoY Growth (CC)	-	-	-	-	-	-	-	-	-	7.6%
Total Segment Revenue	1.503.3	1.706.9	3.210.2	1.952.6	2.100.0	7.262.8	2.231.6	2.325.5	4.557.1	2.498.7
% YoY Growth (RC)	-	-	-	-	-	-	48.4%	36.2%	42.0%	28.0%
% YoY Growth (CC)	-	-	-	-	-	-	-	-	-	20.3%
1 In tersegm en t con solid ation	(19.2)	(35.2)	(54.5)	(38.0)	(42.8)	(135.2)	(46.2)	(49.2)	(95.5)	(53.8)
Adj. EBITDA			(469.2)			(1.085.3)			(481.9)
EBITDA Margin % (GMV)			-2.7%			-2.9%			-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	6.489.8	13.438.6	6.804.5
% YoY Growth (RC)	83.2%	68.2%	75.0%	72.1%	40.1%	63.1%	35.5%	16.1%	25.4%	2.2%
% YoY Growth (CC)	88.3%	71.0%	78.9%	70.0%	40.8%	64.4%	34.9%	13.7%	23.8%	-0.7%
Segment Revenue	620.1	720.2	1.340.4	853.7	876.6	3.070.7	928.0	937.8	1.865.8	970.1
% YoY Growth (RC)	113.2%	84.2%	96.6%	89.7%	61.8%	83.5%	49.7%	30.2%	39.2%	13.6%
% YoY Growth (CC)	121.5%	90.2%	103.5%	88.4%	60.6%	85.6%	46.7%	25.4%	35.3%	8.6%
Adj. EBITDA			(202.2)			(396.6)			(80.5)
EBITDA Margin % (GMV)			-1.9%			-1.7%			-0.6%
MENA
GMV	1.537.7	1.617.3	3.155.0	1.763.4	1.837.5	6.755.9	1.932.4	2.015.0	3.947.5	2.260.6
% YoY Growth (RC)	60.7%	96.7%	77.4%	46.2%	36.1%	55.8%	25.7%	24.6%	25.1%	28.2%
% YoY Growth (CC)	83.2%	123.8%	102.0%	52.0%	38.9%	68.4%	18.4%	13.1%	15.7%	13.6%
Segment Revenue	325.5	359.3	684.9	418.5	459.6	1.562.9	491.1	514.9	1.006.0	594.1
% YoY Growth (RC)	60.9%	116.6%	86.0%	70.0%	64.2%	74.8%	50.9%	43.3%	46.9%	42.0%
% YoY Growth (CC)	79.4%	142.4%	107.8%	74.2%	63.2%	84.6%	41.3%	28.6%	34.6%	23.9%
Adj. EBITDA			65.0			105.7			40.1
EBITDA Margin % (GMV)			2.1%			1.6%			1.0%

Note:

For Group, MENA, Americas and Integrated Verticals, revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentinian, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29. RC = Reported Currency / CC = Constant Currency. Glovo financials are on a preliminary basis.

1. Difference between Total Segment Revenue and the sum of segment revenues is mainly due to intersegment consolidation adjustments for services charged by the Platform businesses to the Integrated Verticals businesses

Delivery Hero KPIs (Pro Forma Data)

in €m		2022
	Q1	Q2	H1	Q3	Q4	FY	Q1	Q2	H1	Q3
Europe
GMV	1.265.5	1.322.2	2.587.6	1.261.2	1.507.3	5.356.2	1.596.0	1.597.1	3.193.1	1.604.7
% YoY Growth (RC)	-	-	-	-	-	-	26.1%	20.8%	23.4%	27.2%
% YoY Growth (CC)	-	-	-	-	-	-	-	-	-	27.9%
Segment Revenue	282.6	302.8	585.3	285.4	322.1	1.192.9	320.8	329.8	650.5	312.8
% YoY Growth (RC)	-	-	-	-	-	-	13.5%	8.9%	11.1%	9.6%
% YoY Growth (CC)	-	-	-	-	-	-	-	-	-	10.2%
Adj. EBITDA			(128.3)			(316.0)			(162.6)
EBITDA Margin % (GMV)			-5.0%			-5.9%			-5.1%
Americas
GMV	420.1	464.3	884.4	513.4	559.9	1.957.8	558.1	674.4	1.232.5	779.6
% YoY Growth (RC)	159.2%	86.1%	114.9%	70.4%	53.9%	81.8%	32.8%	45.3%	39.4%	51.8%
% YoY Growth (CC)	172.6%	90.9%	123.0%	71.8%	54.0%	85.4%	31.0%	40.1%	35.8%	44.5%
Segment Revenue	107.0	119.9	226.9	131.9	150.7	509.6	149.3	177.9	327.1	202.2
% YoY Growth (RC)	182.8%	109.6%	138.8%	82.1%	67.7%	98.0%	39.4%	48.4%	44.2%	53.3%
% YoY Growth (CC)	196.7%	114.7%	147.4%	83.4%	67.9%	101.6%	37.6%	43.3%	40.6%	45.7%
Adj. EBITDA			(80.2)			(157.5)			(80.0)
EBITDA Margin % (GMV)			-9.1%			-8.0%			-6.5%
Integrated Verticals
GMV	199.1	261.3	460.4	320.9	362.6	1.144.0	430.0	461.5	891.5	496.3
% YoY Growth (RC)	-	-	-	-	-	-	115.9%	76.6%	93.6%	54.6%
% YoY Growth (CC)	-	-	-	-	-	-	- -	- -	- -	45.2%
Segment Revenue	187.3	239.9	427.2	301.0	333.7	1.061.9	388.6	414.4	803.1	473.3
% YoY Growth (RC)	-	-	-	-	-	-	107.5%	72.8%	88.0%	57.3%
% YoY Growth (CC)	-	-	-	-	-	-	-	-	-	47.8%
Adj. EBITDA			(123.4)			(320.9)			(198.9)
EBITDA Margin % (GMV)			-26.8%			-28.0%			-22.3%

GMV is accounted for in the respective Platform segments and shown in the Integrated Verticals segment for illustrative purposes only

Note:

For Group, MENA, Americas and Integrated Verticals, revenues, adj. EBITDA, Gross Merchandise Value (GMV) as well as the respective growth rates are impacted by the Argentinian, Lebanese and/or Turkish operations qualifying as hyperinflationary economies according to IAS 29. RC = Reported Currency / CC = Constant Currency. Glovo financials are on a preliminary basis..

Definitions

• § Gross Merchandise Value (GMV) is the total value paid by customers (including VAT, delivery fees, other fees and subsidies but excluding subscription fees, tips and delivery-as-a-service fee)
• § Total Segment Revenue is defined as revenue in accordance with IFRS 15, excluding the effect of vouchers and other discounts.
• § Constant currency provides an indication of the business performance by removing the impact of foreign exchange rate movements. Due to hyperinflation in Argentina, Lebanon and Turkey we have included reported current growth rates for Argentina, Lebanon and Turkey in the constant currency calculation to provide a more accurate picture of the underlying business.
• § MENA revenues, adj. EBITDA, GMV, as well as the respective growth rates, are impacted by the operations in Lebanon and Turkey qualifying as hyperinflationary economies according to IAS 29 (Lebanon: since October 2020, Turkey: since June 2022).
• § Americas revenues, adj. EBITDA, GMV, as well as the respective growth rates, are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 (Argentina: since September 2018).
• § Integrated Verticals revenues, adj. EBITDA, GMV as well as the respective growth rates are impacted by operations in Argentina and Turkey qualifying as hyperinflationary economies according to IAS 29.
• § Contribution margin of own-delivery 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).
• § Pro Forma adjustments: Financial data is shown on a pro forma basis, including Woowa and Glovo and excluding Delivery Hero Korea from 1 January 2021 onwards; historic data has been restated. The Woowa transaction closed 4 March 2021. The divestment of Delivery Hero Korea closed on 29 October 2021. The Glovo transaction closed on 4 July 2022.

Important Notice

• § 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 forward-looking 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 Forwardlooking 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.

Investor Relations Contact

Christoph Bast Head of IR christoph.bast@deliveryhero.com

Bruno Priuli Director IR bruno.priuli@deliveryhero.com

Dennis Bader Director IR dennis.bader@deliveryhero.com

Laura Hecker Senior Manager IR laura.hecker@deliveryhero.com

ir@deliveryhero.com

T: +49 (0)30 54 4459 105 Oranienburger Straße 70, 10117 Berlin, Germany

ir.deliveryhero.com