HelloFresh SE — Investor Presentation 2019

Mar 3, 2020

HELLOFRESH SE 2019 RESULTS March 3rd, 2020

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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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.

AT OHelloFRESH we CHANGE THE WAY PEOPLE EAT FOREVER

Our mission goes far beyond the financials

> 280m TIMES

impacting society in a positive way

BUDGET: Helping consumers save money with every meal

HEALTH: Democratizing access to high-quality food

TASTE: Allowing everyone to eat a varied diet

SUSTAINABILITY: Reducing consumer's environmental footprint

Celebrating 1st full-year of group wide AEBITDA profitability
37% revenue growth in constant currency at significant scale
Delivered >280m meals to nearly 3m active customers
Significant product improvements + choice expansion establishing meal kits as mass market product
Gaining market share across both our segments & becoming synonymous for the category
Continued efforts in reducing food waste & carbon emissions

Excellent order growth continued throughout Q4

Q4 Revenue growth accelerated to 39% on a constant currency basis

7

Contribution margin remained stable in Q4, resulting in a FY margin expansion of +1.3 pp for 2019

Strong YoY customer growth at attractive customer acquisition costs allowed us to gain significant marketing leverage in Q4

AEBITDA outperformance in both Q4 and FY 2019 driven primarily by strong topline growth and marketing leverage

Both segments AEBITDA positive in 2019

What has driven our margin expansion in 2019?

2018 AEBITDA

1st year of significant positive cash flow from operating activities

Strong growth largely self-financed: Quasi-stable net cash position

Position in €m

2019 Cash

	Q4 18	Q4 19
Active Customers (m)	1.09	1.78
Average Order Rate	3.5	3.4
Average Order Value (€)	50.6	49.1
Average Order Value constant currency (€)	50.6	47.6
% YoY revenue growth	25.7%	45.5% CC4
Revenue1 (€m)	29.6%	50.1% €
YoY revenue growth1
Contribution % Revenue	31.3%	29.2%
margin2
(€m) Revenue
AEBITDA3 % Revenue
(€m)	(0.5)%	6.2 %
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

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

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)	Q4 2018	Q4 2019	FY 2018	FY 2019
Revenue	361.7	511.8	1,279.2	1,809.0
% YoY growth	59%	41.5%	43.1%	41.4%
Cost of goods sold1	(130.2)	(178.3)	(475.6)	(640.5)
Gross profit	231.5	333.5	803.6	1168.5
Margin (% of revenue)	64%	65%	63%	65%
Fulfilment expenses1	(125.8)	(185.4)	(454.3)	(652.0)
Marketing expenses1	(86.6)	(92.0)	(329.2)	(405.2)
G&A1	(29.4)	(43.8)	(96.9)	(137.1)
Other operating income & expenses	0.1	(2.2)	(5.1)	(4.3)
EBIT	(10.2)	12.3	(82.8)	(25.8)
Margin (% of revenue)	(2.8)%	2.4%	(6.5)%	(1.4)%
Financial result	5.1	4.2	4.2	20.5
EBT	(5.1)	16.5	(78.6)	(5.3)
Income tax (expense) benefit	0.9	0.7	(4.2)	(4.8)
Net income / (loss)	(4.2)	17.2	(82.8)	(10.1)

EBIT	(10.2)	12.3	(82.8)	(25.8)
D&A	3.8	11.6	13.3	41.5
EBITDA	((6.4)	24.0	(69.5)	15.7
SBC	3.3	4.6	13.4	18.8
Special Items	0.1	10.1	1.6	12.0
AEBITDA2	(2.9)	38.6	(54.5)	46.5
Margin (% of revenue)	(0.8)%	7.5%	(4.3)%	2.6%

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

Assets	FY 2018	FY 2019
Non - current Assets	143.7	288.7
Current Assets*	252.4	281.5
*of which cash	193.9	193.6
Total assets	396.1	570.2
Equity and liabilities
Equity	237.2	246.1
Non - current liabilities	14.5	111.1
Current liabilities	144.9	213.8
Total equity and liabilities	396.1	570.2
		FY 2019
Cash flow used in operating activities		(42.2)
	(50.2)
Cash flow used in investing activities	(66.9)	(29.0)
*of which M&A	(39.9)
Cash flow from financing activities	170 11	(14 8)

Types of share Stock exchange Market Segment Number of shares issued Number of shares outstanding Ordinary shares Frankfurt Stock Exchange Regulated Market (Prime Standard) 164,621,699 164,312,648

Employee incentive plan	Options	RSU	Total
Vested1 (m)	10.6	0.2	10.8
Unvested (m)	4.4	0.7	5.1
Outstanding (m)	15.0	0.8	15.8
WAEP2 (€)	5.1

1. Thereof exercisable 8.7M options

1. Weighted average exercise price

Financial calendar