HelloFresh SE — Earnings Release 2021

May 4, 2021

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. No representation, warranty or undertaking, express or implied, is made by the Company or any other Group company as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. No responsibility, obligation or liability is or will be accepted by the Company, any other Group company or any of their officers, directors, employees, affiliates, agents or advisers in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company, nor any other Group company undertake any obligation to provide the recipient with access to any additional information or to update this document or any information or to correct any inaccuracies in any such information.

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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.

Q1 Highlights

Very strong year-on-year and sequential growth in customers across both segments to 7.3m

• As we consistently expand our production capacity across both segments, we could capitalize in Q1 on
• consistently high demand from new customers
• favorable seasonality
• Strong sequential growth equally split among both segments
• Great basis to continue driving robust year-on-year revenue growth over the coming quarters

Order Rates continue to trend at high levels

Average Order Value maintained above pre-pandemic levels

2020

$\begin{array}{c}\n 2021\n \end{array}$

• Despite very strong new customer acquisitions, which typically include price incentives, AOV up by $4\%$
• Supported by
• Continued higher # meals per order
• Ongoing expansion of add-on offerings
• Strong growth in US ready-toeat

Constant currency revenue growth of 116% to €1.44bn

Q1 Group Revenue 2020 (in $\epsilon$ Millions) $\overline{2021}$ $\cdot$ > 100% cc revenue growth across $+106%$ both segments $+116\%$ ¹ • Key driver is continued strong customer growth, supported by 1442.9 ongoing high order rates and AOV 699.1 Q1 2020 Q1 2021

01 Results 2021

Q1 Contribution Margin down 0.6pp year-on-year

• Continued efficiencies in procurement
• However, somewhat offset by higher fulfilment expenses due to
• Ramp-up of multiple fulfilment centers during the quarter
• Snowstorm/weather disruptions in February
• Strong new customer acquisitions also mean higher overall price incentives, impacting margins

Lower Marketing as % of revenue, despite very strong customer growth

• Continued attractive customer acquisition costs
• Combined with our large existing customer base
• Enables us to deliver strong growth in Q1 while maintaining marketing as % of revenue at lower end of guided range

Despite strong investment in growth, AEBITDA margin expansion to 11%

• Both segments with y-o-y margin expansion and AEBITDA margins above 10%
• Investment in capacity expansion, new customer growth and new verticals all absorbed while maintaining industry leading margins

Double digit AEBITDA margin in both segments

Continued strong FCF generation and strong investments in infrastructure

• Operating CF benefiting from strong profitability and growth-driven cash inflow from working capital
• Cash outflow from investments up and expected increasing further over coming months for new fulfilment centers and automation
• Active capital management: Q1 share-based compensation exercises settled in cash instead of shares to avoid dilution
• Strong (and increasing) cash position: €876m at quarter end

01 Results 2021

Guidance increased to 35 - 45% cc revenue growth on April 15th

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

		3 months ended
	31-Mar-21	31-Mar-20	YoY
Revenue	1,442.9	699.1	106.4%
Procurement Expense	(487.3)	(240.6)	$(102.5)\%$
Fulfilment Expense	(553.1)	(258.3)	$(114.1)\%$
Contribution Margin	402.6	200.2	101.1%
% of Revenue	27.9%	28.6%	$(0.7)$ pp
Marketing Expense	(218.0)	(118.6)	$(83.8)\%$
G&A, other income and expenses	(50.7)	(34.9)	$(45.3)\%$
EBIT	133.9	46.6	187.3%
% of Revenue	9.3%	6.7%	2.6pp
Financial Result	4.8	(5.1)	194.1%
EBT	138.7	41.5	234.4%
Income Tax (Expense) / Benefit	(37.1)	(1.8)	nm
Net Income / (Loss)	101.6	39.7	155.9%
Reconciliation starting at EBIT
EBIT	133.9	46.6	187.3%
D&A	15.6	10.6	$(47.2)\%$
EBITDA	149.5	57.2	161.4%
% of Revenue	10.4%	8.2%	2.2pp
Special Items	2.5	0.3	$(733.3)\%$
SBC	7.1	5.6	$(26.8)\%$
AEBITDA	159.2	63.1	152.3%
% of Revenue	11.0%	9.0%	2.0 pp

Balance Sheet & Cash Flow Statement

In MEUR	As at 31-Mar-21	As at 31-Dec-20
Assets
Non-current assets	643.7	603.6
Cash and cash equivalents	876.3	729.0
Other current assets	216.5	193.0
Total assets	1,736.5	1,525.6
Equity and liabilities
Equity	729.8	656.0
Non-current liabilities	357.2	349.8
Current liabilities	649.5	519.8
Total equity and liabilites	1,736.5	1,525.6
In MEUR	2020	FY 2020
Cash and cash equivalents at the beginning of the period	729.0	193.6
Net Cash flows from operating activities	208.7	601.5
Net Cash flows from investing activities	(26.8)	(210.5)
of which M&A	$\overline{\phantom{a}}$	(128.3)
Net Cash flows from financing activities	(48.1)	163.4
Effects of exchange rate changes and other changes on cash and cash equivalents	13.5	(19.0)
Cash and cash equivalents at the end of the period	876.3	729.0

Types of share	Ordinary shares
Stock exchange	Frankfurt Stock Exchange
Market Segment	Regulated Market (Prime Standard)
Number of shares issued	173,864,414
Number of shares outstanding	173,557,663

Employee incentive plan	Options	RSU	Total
Vested (in mn)	4.71	0.01	4.71
Unvested (in mn)	3.34	0.36	3.70
Outstanding (in mn)	8.05	0.37	8.42
WAEP 1 (in EUR) Vested	9.92	0.00	9.90
WAEP 1 (in EUR) Unvested	23.37	0.00	21.10
$WAEP1$ (in EUR)	15.50	0.00	14.83

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04.05 - Q1 Results Release 04.05 - Morgan Stanley: DACH Roadshow	05.05 - BNP Paribas: UK Roadshow	06.05 - Kepley Cheuvreux: France Roadshov
18.05 - Berenberg Conference USA	19.05 - Morgan Stanley: Virtual Internet Field Trip with Dominik Richter (CEO)
14.06 - Barclays European Internet & Emerging Tech Conference	16.06 - db Access Conference