HelloFresh SE — Earnings Release 2020

Nov 3, 2020

Q3 2020 RESULTS November 3th, 2020

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Disclaimer

This document has been prepared by HelloFresh SE (the "Company" and, together with its subsidiaries, the "Group"). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a full or complete description of the Company or the Group. This document 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 securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

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This document includes certain financial measures not presented in accordance with IFRS, including, but not limited to, AEBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to result for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.

Third Quarter Highlights

Refresh of Corporate Identity

HelloFresh reaches 5.00m active customers for the first time, up 91.5% versus Q3 2019

Record number of orders (19.49m, up 114% from Q3 2019) and meals (162.0m, up 135% from Q3 2019)

Q3 revenue of EUR 970.2m, constituting YoY revenue growth of 120.2% (in constant currency: 127.7 % )

Continued strong Free Cash Flow generation with EUR 118.5m in Q3 2020 alone

AEBITDA margin up year-on-year by 8.3 pp to 11.8%

Group Customer base up strongly, both year-on-year and sequentially

Structurally higher Order Rate, despite easing of lockdown measures in Q3 across several markets

2020 2019

Order rates continue to trend meaningfully above previous base line

• US up 18.7% YoY
• Intl. up 4.3% YoY

Record number of customer orders in Q3 2020

Average order value up by c. 7% on a constant currency basis

As a result, we even accelerated further our revenue growth to 128 % (on const. currency)

2020 2019

• Higher constant currency revenue growth than in the exceptionally strong Q2 2020
• Very little summer seasonality
• Successful ongoing debottlenecking and creation of new production capacity across both segments

Similar triple-digit constant currency revenue growth across both segments

Q3 2020 RESULTS

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Contribution Margin down YoY due to ongoing COVID effects, but up sequentially

2020 2019

• -0.8 pp Contribution margin expansion vs. Q2 2020, despite typically higher fulfillment costs during the summer
• US segment more affected by temporary Covid-related cost increases than INTL

Q3 Contribution margin¹ (in % of revenue)

Marketing as % of revenue up sequentially, but meaningfully down YoY

Q3 2020 RESULTS 1. Excl. SBC 11

Very meaningfully AEBITDA growth to € 115m in Q3 2020

2020 2019

AEBITDA margin of > 10% in each segment in each quarter to date

Despite continuing to invest strongly in our capabilities and infrastructure, we generate best-in-class cash flows

Updated FY 2020 Outlook

	G u i d ance ( A u g 2 0 2 0 )	G u i d ance ( O c t 2 0 2 0 )
C o n s t . C u r r e n c y R e v . g r o w t h	75% - 95%	95% - 105%
A E B I T D A m a r g i n	9% - 11%	11.25% - 12.75%
Q3 2020 RESULTS

USA: Operational and Financial KPIs

1.Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2.Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

3.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue

4.Based on constant currency

INTL: Operational and Financial KPIs

1.Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2.Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

3.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue

4.Based on constant currency

GROUP: Operational and Financial KPIs

1.Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2.Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

3.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue

4.Based on constant currency

Profit and Loss Statement

(€m)

(€m)	Q3 2019	Q3 2020
Revenue	440.6	970.2
% YoY growth	45.8 %	120.2%
Procurement Expenses1	(156.4)	(332.4)
Gross profit	284.2	637.8
Margin (% of revenue)	64.5%	65.7%
Fulfilment expenses1	(163.5)	(379.8)
Marketing expenses1	(88.6)	(124.3)
G&A1	(30.2)	(39.1)
Other operating income & expenses	(1.0)	(2.5)
EBIT	0.9	92.1
Margin (% of revenue)	0.2%	9.5%
Financial result	25.4	(11.5)
EBT	26.3	80.6
Income tax (expense) benefit	(2.6)	(6.0)
Net income / (loss)	23.7	74.6

Reconciliation starting at EBIT

EBIT
D&A
EBITDA
SBC
Special Items2
AEBITDA3
Margin (% of revenue)

0.9	92.1
9.3	11.6
10.2	103.7
5.1	6.3
0.2	4.7
15.5	114.7
3.5%	11.8%

FY 2019 1,809.0 41.4% (640.5) 1168.5 65% (652.0) (405.2) (137.1)

(25.8) (1.4)%

(10.1)

(25.8) 41.5

18.8 12.0 46.5

15.7

2.6%

(82.8) 13.3

13.4 1.6 (54.5)

(69.5)

(4.3)%

1.Including share-based compensation expenses

2.Does not include expenses related to Covid-19

3.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses. Excluding holding fees.

Balance Sheet and Cash-Flow Statements

(€m)

	31.12.2019	30.09.2020
Assets
Non - current Assets	288.7	307.6
Current Assets*	281.5	864.9
*of which cash	193.6	722.5
Total assets	570.2	1,172.5
Equity and liabilities
Equity	245.3	518.5
Non - current liabilities	111.1	272.1
Current liabilities	213.8	381.9
Total equity and liabilities	570.2	1,172.5

	Q3 2019	Q3 2020
Cash flow from operating activities	36.1	134.8
Cash flow used in investing activities	(11.0)	(14.2)
*of which M&A	-	-
Cash flow from financing activities	(4.9)	0.9

Share Count

As of September 30st, 2020

Types of share	Ordinary shares
Stock exchange	Frankfurt Stock Exchange
Market Segment	Regulated Market (Prime Standard)
Number of shares issued	173,864,415
Number of shares outstanding	173,501,251

Employee incentive plan	Options	RSU	Total
Vested (in mn)	3.70	0.18	3.88
Unvested (in mn)	4.06	0.58	4.64
Outstanding (in mn)	7.77	0.75	8.52
WAEP1 (in EUR) Vested	8.98	0.00	8.57
WAEP1 (in EUR) Unvested	14.05	0.00	12.31
WAEP1 (in EUR)	11.53	0.00	10.51

Financial Calender