HelloFresh SE — Investor Presentation 2020

Aug 11, 2020

HELLOFRESH SE Q2 2020 RESULTS August 11th, 2020

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A significant portion of the information contained in this document, including market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company or any other person as being accurate. All statements in this document attributable to third party industry experts represent the Company's interpretation of data, research opinion or viewpoints published by such industry experts, and have not been reviewed by them. Each publication of such industry experts speaks as of its original publication date and not as of the date of this document.

This document contains forward-looking statements relating to the business, financial performance and results of the Company, the Group or the industry in which the Group operates. These statements may be identified by words such as "expectation", "belief', "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth for products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. No obligation is assumed to update any forward-looking statements.

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.

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Second Quarter 2020 Highlights

Very strong revenue growth throughout the whole quarter despite ease of lockdown restrictions
Validating customer trust by fulfilling higher order rates and larger box sizes despite currently challenging operating environment
Record Group AEBITDA of EUR 153.6m with a margin of 15.8%
€ 131.8m Free Cash Flow in Q2 alone
Strengthening our commitment to sustainability by becoming carbon neutral globally
Continued TAM expansion remains a key pillar of our long-term growth strategy:
o Successful Q2 launch in Denmark
o Start of EveryPlate internationalization in Australia

We are proud to have served our customers with 149m meals in these challenging times

Massive thanks to our frontline workers in the DCs

Delivered 149m meals of high-quality food safely to our customers

Increased number of donations to support local foodbanks

Comprehensive additional Covid-related safety measures implemented early on

Produced close to max capacity across markets, while consistently implementing additional tactical and structural capacity expansion measures

- •

New sites in two of our best performing markets where we were facing capacity constrains

While dealing with record volumes in our existing markets, we continued our TAM expansion strategy via geographic and brand expansion

EveryPlate Launch in Australia

First step to internationalize our US specialist Brands

Increase of TAM in Australia

Leverage existing production setup

Utilizing existing supplier network

EveryPlate

HelloFresh Launch in Denmark

Like Sweden, Denmark exhibits all of the right traits for a successful market entry

Incremental TAM expansion

Attractive customer demographics

High product awareness and consumer adoption

Group customer base up 74% YoY and stable vs. Q1 (despite capacity constraints)

4.2 M active customers in Q2 2020

• INTL customer base sequentially expanded
• on high-value customers as we faced capacity constraints

Increased customer engagement is further boosting order growth

Average order value also meaningfully up by c. 10%

122% revenue growth (in constant currency)

HelloFresh SE | Q2 Results 2020

11

Both segments have delivered triple digit growth rates

Contribution margin impacted by extra Covid-related effects

2019 2020

Increased fulfilment expenses because of COVID:

• Lower productivity due to rollout of social distancing and safety measures
• Temporarily higher direct labor expenses
• US segment primarily . impacted

Q2 Contribution Margin

(in % of Revenue )

Very meaningful reduction in relative Marketing expenses

Significant G&A leverage due to strong topline growth

Whilst growing revenue by 122 %, we have expanded AEBITDA margin to 15.8%

2019 2020

154 MEUR AEBITDA in Q2 alone

• driven by marketing savings and G&A efficiencies

AEBITDA margin >15% in both operating segments

HelloFresh SE | Q2 Results 2020

Continued strong cash flow generation in Q2

HelloFresh SE Q2 Results 2020 1. Cash Flow used in operating activities minus Net CAPEX and repayment of lease liabilities

We have further meaningfully expanded our strong Balance Sheet and Liquidity postion through organic cash flow and the issuance of a convertible bond

• seasonality
• Worsening again of Covid situation in certain markets
• Strong customer engagement, including customers acquired during Q2

What is the opportunity that we are after?

USA

Target Audience

Across our three brands we target about 63 million households1 in the US Segment

International

With our HelloFresh Brand we target about 58 million households1 in our Intl. Segment

Cooked and consumed at home

Away from home

Weekly Customer Consideration

1. Based on household income. Top 40% income households ; US: Top 50% income households

	Q2 19	Q2 20
Active Customers (m)	1.35	1.98
Average Order Rate	3.6	4.5
Average Order Value (€)	50.1	59.2
Average Order Value constant currency (€)	50.1	58.0
% YoY revenue growth	22.3%	109.8 % CC4
Revenue1 (€m)	29.9%	114.3 % €
YoY revenue growth1
Contribution % Revenue margin2	30.3%	24.2%
(€m) Revenue
AEBITDA3 % Revenue (€m)	2.9%	15.5%
Revenue

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

		Q2 19	Q2 20
Active Customers (m)		1.06	2.20
Average Order Rate		3.8	4.2
Average Order Value (€)		47.2	48.3
Average Order Value constant currency (€)		47.2	49.2
	% YoY revenue growth	44.9%	137.6 % CC4
Revenue1 (€m)		46.3%	133.2 % €
	YoY revenue growth1
Contribution	% Revenue	27.9%	29.1%
margin2
(€m)
Revenue
AEBITDA3	% Revenue	11.5%	18.8%
(€m)
Revenue

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

	Q2 19	Q2 20
Active Customers (m)	2.41	4.18
Average Order Rate	3.7	4.3
Average Order Value (€)	48.8	53.7
Average Order Value constant currency (€)	48.8	53.5
% YoY revenue growth	31.5%	122.0 % CC4
Revenue1 (€m)	36.6%	122.6 % €
YoY revenue growth1
Contribution % Revenue	29.1%	26.2%
margin2 (€m)
Revenue
AEBITDA3 % Revenue	4.2%	15.8 %
(€m)
Revenue

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

Reconciliation starting at EBIT

(€m)	Q2 2019	Q2 2020
Revenue	436.7	972.1
% YoY growth	36.6%	122.6%
Procurement Expenses1	(153.9)	(342.2)
Gross profit	282.8	629.9
Margin (% of revenue)	64.8%	64.8%
Fulfilment expenses1	(156.2)	(376.3)
Marketing expenses1	(92.6)	(83.7)
G&A1	(31.4)	(35.2)
Other operating income & expenses	(1.3)	(0.6)
EBIT	1.3	134.1
Margin (% of revenue)	0.3%	13.8%
Financial result	(4.6)	(3.5)
EBT	(3.3)	130.6
Income tax (expense) benefit	(1.5)	(14.6)
Net income / (loss)	(4.8)	116.0

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)%

EBIT	1.3	134.1
D&A	10.4	11.5
EBITDA	(11.8	145.6
SBC	4.9	6.3
Special Items	1.6	1.7
AEBITDA2	18.3	153.6
Margin (% of revenue)	4.2%	15.8%

1.Including share-based compensation expenses 2.AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses

Balance sheet and cash-flow statements

	FY 2019	Q2 2020
Assets
Non - current Assets	288.7	295.8
Current Assets*	281.5	748.7
*of which cash	193.6	611.5
Total assets	570.2	1,044.5
Equity and liabilities
Equity	245.3	432.4
Non - current liabilities	111.1	259.7
Current liabilities	213.8	352.4
Total equity and liabilities	570.2	1,044.5

	FY 2019	Q2 2020
Cash flow used in operating activities	42.2	148.9
Cash flow used in investing activities	(29.0)	(10.6)
*of which M&A	-	-
Cash flow from financing activities	(14.8)	173.5

Types of share Stock exchange Market Segment Number of shares issued Number of shares outstanding Ordinary shares Frankfurt Stock Exchange Regulated Market (Prime Standard) 165,686,321 165,995,372

Employee incentive plan	Options	RSU	Total
Vested (m)	11.0	0.16	11.2
Unvested (m)	4.5	0.68	5.2
Outstanding (m)	15.5	0.85	16.6
WAEP (€) Vested	3.64	-	-
WAEP (€) Unvested	13.07	-	-
WAEP1 (€)	6.4	-	-

Financial calendar