HelloFresh SE — Investor Presentation 2021

Aug 10, 2021

Q2 2021 RESULTS August 10th, 2021

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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

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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 AT

OUR VISION

THE WORLD'S LEADING, FULLY INTEGRATED FOOD SOLUTIONS GROUP

We continued our TAM expansion via geographic and brand rollouts

HelloFresh launch in Norway Green Chef launch in UK

Following successes in Sweden and Denmark, HelloFresh launches into the next Nordic market

2.5m households market opportunity

Leverage technology and supply chain network

New state-of-the art FC near Oslo

As part of our expansion strategy, we have brought America's No. 1 sustainable meal-kit brand to the UK

Incremental TAM expansion

Tailored for the health-savvy UK customer

Distinctive customer offering to cement our market leadership in the UK

Q2 Customers increased by 83.7% year-on-year to 7.7m

• Continued growth quarter-onquarter, despite easing of restrictions
• Enabled by de-bottlenecking of production capacity
• Broad-based growth momentum across both segments
• Intl +75.5%
• US +92.9% (incl. Factor)
• Q2 2019: 2.4m [Y-o-2Y +220%]

Order rates remain high and ahead of pre-pandemic levels

• Average order rate per customer remains at 4.0 while markets continue to open up
• As expected, a return to more normal seasonal behavior around public holidays and the summer period
• Q2 2019: 3.7 [Y-o-2Y +8%]

Average order value below "peak Covid" benchmark, but up on Q1 2021

• On average, bigger basket sizes and higher contribution from add-ons across geographies compared to pre-Covid levels
• US AOV supported by Factor contribution
• International AOV impacted by mix effects between geographies
• Q2 2019: €48.8 [Y-o-2Y +3%]

Despite Q2 being the first full quarter with Covid comparatives, CC Revenue growth was 66.5%

• Strong topline growth across both segments
• US with CC growth of 76.5% benefiting from less capacity constraints and Factor contribution
• Intl with a CC growth of 54.7%

Q2 Contribution margin remained broadly stable year-on-year

2021 2020

• Continued efficiencies in procurement expenses
• Relative increase in fulfilment expenses from rapid ramp-up of production capacity
• In addition, mix effects within Intl segment

Q2 2021 Fulfilment expenses in both segments impacted by rapid capacity build-up, while US benefiting from reduction of Covid-inefficiencies

Marketing as % of revenue is normalizing compared to heavily capacity constrained Q2 2020

2021 2020

• Marketing expenses driven by strong customer growth
• Down as % of revenue compared to Q1 2021

We increased our Q2 AEBITDA to €158m whilst continuing to strongly invest in growth

• Investment in capacity expansion, new customer growth, new markets and new vertical ramp-up all absorbed while maintaining industry leading margins

We maintain our industry-leading profitability profile across both segments

We have further increased our cash position to €933m through organic free cash flow

• Strong AEBITDA profitability driving cash flow from operations
• As expected, step-up in investments with €40.3m capex in Q2 (with more to come in H2)

Outlook changed to 45% – 55% cc revenue growth and 8.25% - 10.25% AEBITDA margin

	Updated	Guidance	Guidance
	Guidance (Aug 2021)	(April 2021)	(Dec 2020)
Const. Currency Rev. growth	45% - 55%	35% - 45%	20% -	25%
AEBITDA margin %	8.25% - 10.25%	10% - 12%	9% -	12%
Q2 Results 2021				16

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

USA: 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

International: Operational and Financial KPIs

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 %	6 months ended		Change %
	30-Jun-21	30-Jun-20	YoY	30-Jun-21	30-Jun-20	YoY
Revenue	1,555.0	972.1	60.0%	2,997.9	1,671.2	79.4%
Procurement Expense	(532.7)	(342.2)	(55.7)%	(1,020.0)	(582.8)	(75.0)%
Fulfilment Expense	(623.5)	(376.3)	(65.7)%	(1,176.6)	(634.7)	(85.4)%
Contribution Margin	398.8	253.6	57.3%	801.4	453.7	76.6%
% of Revenue	25.6%	26.1%	(0.5)pp	26.7%	27.1%	(0.4)pp
Marketing Expense	(213.4)	(83.7)	(155.0)%	(431.4)	(202.3)	(113.2)%
G&A, other income and expenses	(54.4)	(35.8)	(52.0)%	(105.0)	(70.8)	(48.3)%
EBIT	131.0	134.1	(2.3)%	265.0	180.6	46.7%
% of Revenue	8.4%	13.8%	(5.4)pp	8.8%	10.8%	(2.0)pp
Financial Result	(8.0)	(3.5)	(128.6)%	(3.3)	(8.5)	61.2%
EBT	123.0	130.6	(5.8)%	261.7	172.1	52.1%
Income Tax (Expense) / Benefit	(39.2)	(14.6)	(168.5)%	(76.3)	(16.4)	(365.2)%
Net Income / (Loss)	83.8	116.0	(27.8)%	185.4	155.7	19.1%
Reconciliation starting at EBIT
EBIT	131.0	134.1	(2.3)%	265.0	180.6	46.7%
D&A	24.8	11.5	(115.7)%	40.4	22.1	(82.8)%
EBITDA	155.9	145.6	7.1%	305.4	202.7	50.7%
% of Revenue	10.0%	15.0%	(5.0)pp	10.2%	12.1%	(1.9)pp
Special items	1.3	1.7	23.5%	3.8	2.2	(72.7)%
SBC	0.6	6.3	90.5%	7.8	11.8	33.9%
AEBITDA	157.8	153.6	2.7%	317.0	216.7	46.3%
% of Revenue	10.1%	15.8%	(5.7)pp	10.6%	13.0%	(2.4)pp

Balance Sheet & Cash Flow Statement

In MEUR	As at 30-Jun-21	As at 31-Dec-20
Assets
Non-current assets	701.2	603.6
Cash and cash equivalents	933.4	729.0
Other current assets	261.9	193.0
Total assets	1,896.5	1,525.6
Equity and liabilities
Equity	804.3	656.0
Non-current liabilities	370.1	349.8
Current liabilities	722.1	519.8
Total equity and liabilites	1,896.5	1,525.6
In MEUR	Q2 2021	FY 2020
Cash and cash equivalents at the beginning of the period	876.3	193.6
Net Cash flows from operating activities	103.1	601.5
Net Cash flows from investing activities	(40.3)	(210.5)
of which M&A	—	(128.3)
Net Cash flows from financing activities	(3.1)	163.4
Effects of exchange rate changes and other changes on cash and cash equivalents	(2.6)	(19.0)
Cash and cash equivalents at the end of the period	933.4	729.0

Share Count

As of June 30, 2021

Q2 Results 2021

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	173,537,351

Employee Incentive Plan	Options	RSU	Total
Vested (in mn)	5.1	0.05	5.2
WAEP (in EUR) - vested instruments	10.7	0	10.6
Unvested (in mn)	2.9	0.33	3.3
WAEP (in EUR) - unvested instruments	24.3	0	21.9
Outstanding (in mn)	8.1	0.38	8.5
WAEP (in EUR)	15.6	0.01	15