HelloFresh SE — Investor Presentation 2018

Nov 13, 2018

1 REVENUE GROWTH $+10\%$ ¹ than expected by broker consensus

• $\overline{\mathbf{2}}$ EARLY BREAK-EVEN CORE BUSINESS
• INTERNATIONAL BUSINESS RE-3 ACCELERATION

• LEADERSHIP IN FVFRY MARKFT 4 MARKET WE OPERATE

• 2 quarters before expected date

• 52% YoY growth
  • YTD in constant currency
  • $#1$ everywhere

5 PURSUE LONG-TERM GROWTH LEVERS TAM Expansion, Geo Expansion and opportunistic M&A

We fully delivered on all our promises

• $\mathbf{1}$ REVENUE GROWTH
• $\overline{\mathbf{2}}$ EARLY BREAK-EVEN CORE BUSINESS
• INTERNATIONAL BUSINESS RE-3 ACCELERATION
• LEADERSHIP EVERY MARKET IN 4 MARKET WE OPERATE
• 5 PURSUE LONG-TERM GROWTH LEVERS

Highlights Q3: Continued strong group performance

• Strategic investments in the US are showing encouraging initial results $\bullet$
• New Zealand successfully launched as 11th geography $\bullet$
• Market leadership in Canada attained through Chefs Plate acquisition $\bullet$

Strong Revenue Growth

• €302m revenues
• Y-o-Y topline growth of 41% on constant currency $\bullet$

Positive AEBITDA development

• International segment on track for positive FY 2018 AEBITDA $\bullet$
• Group AEBITDA margin in Q3 broadly stable Y-o-Y at (8.6)%, despite recent $\bullet$ near-term drag due to range of new strategic initiatives

Deep Dive: Our long-term Growth Strategy

TAM penetration

• through Product and Price Differentiation $\bullet$
• through Geographic Expansion $\bullet$

Better monetization of customers

Adjacent verticals

• Retail $\bullet$
• HelloFreshGO $\bullet$
• GoReadyMade $\bullet$

Q3 results: Contribution margin^1,2 well above last year's levels, due to operational excellence across all domains

(% of Revenue)

• Group contribution margin +2.7pp Y-o-Y, despite near term impact of new strategic initiatives and new verticals
• Y-o-Y improvements primarily originate from COGS savings through procurement efficiencies and better menu planning

• Each quarter in 2018 well above 2018 guidance of "above 25%"

• Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses; contribution margin is shown as % of revenue 2. Excluding Share Based Compensation expenses

Q3 results: AEBITDA in line with last year, despite near-term drag from investments in new strategic initiatives and new verticals

(% of Revenue)

• +2.7 pp contribution margin Y-o-Y
• More seasonal marketing spend allocation due to 'back-to-school' ramp-up and additional activities around US price reduction and new verticals

• Higher G&A Y-o-Y primarily due to continued investment in tech infrastructure

• AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue 2. Excluding Green Chef

US: Continued strong growth and contribution margin expansion

OPERATIONAL AND FINANCIAL KPIS

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

2. Based on constant currency

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

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

INTERNATIONAL: 2^nd profitable AEBITDA quarter in a row

OPERATIONAL AND FINANCIAL KPIS

	Q3 17	Q3 18	YTD 17	YTD 18
Active Customers (m)	0.49	0.78
Average Order Rate	4.1	3.7
Average Order Value (€)	42.7	45.2	43.4	44.4
Average Order Value constant currency (€)	42.7	46.5	43.4	45.8
Revenue 1 ( $\epsilon$ m)	85.6	132.3	257.6	379.4
$\frac{0}{0}$ YoY revenue growth CC 2	18.1%	54% 59%	11.6%	47% $52\%$
Contribution margin 3 (€m)	19.5	35.1	60.3	100.0
Revenue $\frac{0}{0}$	22.8%	26.5%	23.4%	26.4%
AEBITDA 4 (€m)	(4.3)	1.6	(12.7)	$5.5\,$
$\frac{0}{0}$ Revenue	$-5.0\%$	1.2%	$-4.9%$	1.4%

1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; Y-o-Y stands for year on year and compares the respective quarter with the same quarter of the previous year 2. Based on constant currency

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

Appendix

Profit & loss statement

$(\epsilon m)$	Q3 2017	Q3 2018	YTD 2017	YTD 2018
Revenue	216.7	302.2	652.1	917.5
% YoY growth	48%	39%	49%	41%
Cost of goods sold 1	(86.5)	(111.4)	(267.0)	(345.4)
Gross profit	130.2	190.8	385.1	572.1
Margin (% of revenue)	60%	63.1%	59%	62.3%
Fulfilment expenses 1	(80.2)	(112.7)	(243.1)	(328.5)
Marketing expenses 1	(57.1)	(85.1)	(180.3)	(243.5)
G&A 1	(14.9)	(22.6)	(35.3)	(67.4)
Other operating income & expenses	(1.0)	(1.5)	(2.3)	(5.3)
EBIT	(23.0)	(31.1)	(75.9)	(72.6)
Margin (% of revenue)	(11%)	(10%)	(12%)	(8%)
Financial result	(1.8)	(0.2)	(6.0)	(0.8)
EBT	(24.8)	(31.3)	(81.9)	(73.4)
Income tax (expense) benefit	0.1	(2.2)	0.5	(5.2)
Net income / (loss)	(24.7)	(33.5)	(81.4)	(78.6)

Reconciliation starting at EBIT

EBIT
D&A
EBITDA
SBC
Special Items
AEBITDA 2
Margin (% of revenue)

(23.0)	(31.1)
2.0	3.3
(21.0)	(27.8)
2.0	1.5
1.6	0.3
(17.4)	(26.0)
$(8.0\%)$	$(8.6)\%$

(75.9)	(72.6)
5.8	9.4
(70.1)	(63.2)
3.8	10.1
2.3	$1.5\,$
(64.0)	(51.6)
$(9.8\%)$	(5.6)%

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

$(\epsilon m)$	31-Dec 17	30-Sep 18
Assets
Non - current Assets	66.1	88.4
Current Assets*	386.8	311.4
*of which cash	339.9	256.6
Total assets	452.9	399.8
Equity and liabilities
Equity	303.3	234.4
Non - current liabilities	41.6	12.4
Current liabilities	108.0	153.0
Total equity and liabilities	452.9	399.8
	YTD 2017	YTD 2018
Cash flow from operating activities	(31.5)	(23.9)
AEBITDA	(64.0)	(51.6)

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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