HelloFresh SE — Earnings Release 2021

Mar 1, 2022

Q4 & FY 2021 Results

March 1st, 2022

1

Disclaimer

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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.

Our Mission

We change the way people eat forever

Our Vision

The world's leading, fully integrated foods solution group

2021 Highlights

Q4 Customers increased by 36.5% year-on-year to 7.2m

Order rates in Q4 remained strong and ahead of pre-pandemic levels

• Average order rate per customer broadly stable YoY against strong Covid comparison
• Equally strong performance across both segments
• Q4 2019: 3.6 [Y-o-2Y +14%]

Q4 Average order value has increased further

• constant currency
• Biggest driver is more meals per box
• US segment key driver of AOV increase
• Q4 2019: €48.6 [Y-o-2Y +10%]

Based on excellent underlying fundamentals, strong revenue growth continued with +37.3%¹ uplift in the quarter, to total €6.0B full year

• Continued strong topline growth across both segments drives highest revenue quarter ever
• FY Revenue of €6.0B, with CC growth of +61.5%
• Q4 US CC growth of +40.3%, including Factor contribution
• Q4 Intl CC growth of +33.9%
• Q4 2019: €512m [Y-o-2Y +209%]

Q4 Contribution margin of 24.7%, in line with previous guidance

• Capacity Expansion, growth investments, and focus on relative price attractiveness temporarily reduced contribution margin
• FY Procurement cost (0.1) pps¹ YoY driven by ingredient price inflation
• FY Fulfilment costs (2.7) pps¹ YoY reflecting:
  • Ongoing ramp up of capacity and new markets
  • Wage increases
  • Market mix effects

Highly profitable marketing investments throughout Q4 drive strong topline growth

• Strong marketing ROI and short payback periods maintained throughout Q4
• Q4 2020 comparative period still somewhat impacted by Covid environment and capacity constraints in certain markets
• Q4 2019: 17.9% [Y-o-2Y 4.0pp]

Longer term perspective: Relative marketing spend meaningfully below pre-pandemic levels, while maintaining high revenue growth

Figures excl. SBC

We delivered Q4 AEBITDA of €130.8m for a full year AEBITDA of €527.6m

• Strong profitability maintained, despite meaningful growth investments and temporary cost inflation
• c. €(3)m AEBITDA contribution from 1st time consolidation of YouFoodz
• Q4 2019: €38.6m, 7.5% [Y-o-2Y +238%, +0.8pp]

Despite strong growth investments and acquisitions, we have increased our cash position to €827m

• €458.6m cash flow from operations, driven by positive EBITDA and cash inflow from working capital
• Significant investment in our long-term growth of €(321.6)m:
  • €(234.5)m mostly physical capacity expansion and €(17.3)m of internally generated software assets
  • €(73.6)m acquisition of YouFoodz
• Strong year-end cash position of €827.1m enables us to execute on future growth plans and take advantage of capital allocation opportunities, while maintaining strong cash position

We reiterate our 2022 Outlook of 20% – 26% CC revenue growth and €500m - €580m AEBITDA

AEBITDA	€500m - €580m
---------	------------------

Group: Operational and Financial KPIs

Q4 and FY Results 2021 | 16 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

USA: Operational and Financial KPIs

Q4 and FY Results 2021 | 17 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

International: Operational and Financial KPIs

Q4 and FY Results 2021 | 18 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	Change %	12 months ended			Change % YoY
	31-Dec-21	31-Dec-20	YoY	31-Dec-21	31-Dec-20
Revenue	1,580.1	1,108.5	42.5%	5,993.4	3,749.9	59.8%
Procurement Expense	(536.7)	(361.5)	48.5%	(2,046.4)	(1,276.7)	(60.3)%
Fulfilment Expense	(658.3)	(407.6)	61.5%	(2,448.7)	(1,422.1)	(72.2)%
Contribution Margin	385.2	339.5	13.5%	1,498.3	1,051.1	42.5%
% of Revenue	24.7%	30.7%	(6.0)pp	25.3%	28.2%	(2.9)pp
Marketing Expense	(220.7)	(143.1)	54.2%	(861.6)	(469.7)	(83.4)%
G&A	(71.5)	(39.7)	80.1%	(220.3)	(146.0)	(57.5)%
Other Operating Income (Expenses)	(6.5)	(3.8)	71.1%	(24.6)	(9.5)	158.9%
EBIT	86.4	152.8	(43.5)%	391.8	425.9	(8.0)%
% of Revenue	5.4%	13.8%	(8.4)pp	6.5%	11.4%	(4.9)pp
Financial Result	0.8	(10.2)	(107.8)%	(7.8)	(30.1)	(74.1)%
EBT	87.2	142.6	(38.8)%	384.0	395.8	(3.0)%
Income Tax (Expense) / Benefit	(38.5)	(4.2)	816.7%	(127.7)	(26.7)	378.3%
Net Income / (Loss)	48.7	138.4	(64.8)%	256.3	369.1	(30.6)%
Reconciliation starting at EBIT
EBIT	86.4	152.8	(44.3)%	391.8	425.9	(8.0)%
D&A	30.9	13.4	(130.6)%	96.8	47.1	(105.5)%
EBITDA	116.3	166.6	(30.2)%	488.6	473.1	3.3%
% of Revenue	7.4%	15.0%	(7.6)pp	8.2%	12.6%	(4.4)pp
SBC	8.9	5.8	(53.4)%	25.6	24.0	(6.7)%
Special Items	5.6	1.4	(300.0)%	13.4	8.2	(63.4)%
AEBITDA	130.8	173.8	24.7%	527.6	505.2	(4.4)%
% of Revenue	8.3%	15.7%	(7.4)pp	8.8%	13.5%	(4.7)pp

Balance Sheet & Cash Flow Statement

In MEUR	As at 31-Dec-21	As at 31-Dec-20
Assets
Non-current assets	1,055.5	603.6
Cash and cash equivalents	827.1	729.0
Other current assets	326.0	193.0
Total assets	2,208.6	1,525.6
Equity and liabilities
Equity	896.6	656.0
Non-current liabilities	486.7	349.8
Current liabilities	825.3	519.8
Total equity and liabilites	2,208.6	1,525.6
In MEUR	2021	2020
Cash and cash equivalents at the beginning of the period	729.0	193.6
Net Cash flows from operating activities	458.6	601.5
Net Cash flows from investing activities	(321.6)	(210.5)
of which M&A	(73.6)	(132.5)
Net Cash flows from financing activities	(62.7)	163.4
Effects of exchange rate changes and other changes on cash and cash equivalents	23.8	(19.0)
Cash and cash equivalents at the end of the period	827.1	729.0

Share Count

As of December 31, 2021

Types of share	Ordinary shares
Stock exchange	Frankfurt Stock Exchange
Market Segment	Regulated Market (Prime Standard)
Number of shares issued	173,942,278
Number of shares outstanding	173,537,351

Employee incentive plan	Options	RSU	Total
Vested (in mn)	6.10	0.01	6.11
Unvested (in mn)	2.29	0.36	2.65
Outstanding (in mn)	8.39	0.37	8.76
WAEP1 (in EUR) Vested	11.25	0.00	11.23
WAEP1 (in EUR) Unvested	32.85	0.00	28.39
WAEP1 (in EUR)	17.15	0.00	16.43