HelloFresh SE — Investor Presentation 2022

Oct 27, 2022

Q3 2022 Results October 27th, 2022

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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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.

Our Mission

We change the way people eat forever

Our Vision

The world's leading, fully integrated foods solution group

Q3 2022 Highlights

Continued strong revenue growth of 18% (on a constant currency basis) to €1.86bn

Sequential re-acceleration of active customer growth of 8% YoY to 7.5m

Further increase in average order value to €63.7 (+12% YoY on a constant currency basis)

Solid contribution margin of 24.5%, up 2.0 pp YoY, despite inflationary headwinds

€71.8m AEBITDA, a margin of 3.9%. Marketing (as % of revenue) of 17.9%, driven by seasonality and somewhat higher US CACs

Strong balance sheet maintained, with €604m of cash

Ongoing improvements to customer proposition (menu expansion, relative affordability)

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Investments in the customer proposition include continuous menu and choice expansion in both segments

¹Like for like, i.e. does not include new countries and/or brand launches that were not present in the previous period. Excludes ready to eat

Q3 2022 Results | 5

A larger and better optimized assortment helps drive customer uptake consistently for HelloFresh Market

¹Defined as HF customers who have ordered an add-on from HF Market as a % of total meal boxes in that week. Data for ANZ, BNL, US and Canada (week 2 onwards)

We deliberately increased pricing less than overall food price inflation, markedly improving HelloFresh's relative affordability vs. all other food alternatives

1 HF price development calculated as weighted average price increase (new and existing customers). CPI Food Inflation from OECD sources (% change calculated YoY on August 2022)

HF Value for Money Perception (YoY Change)

• Internal survey. Increase in share of customers that agree or strongly agree that 'HelloFresh is good value for money'

Q3 Customers increased by 8.2% year-on-year to 7.51m

• Sequential re-acceleration of customer growth
  • Intl +11.0 %
  • US +5.5 %
• Intl. with meaningful sequential acceleration, despite challenging macro
• US HF brand more modest 'back-to-school' season than originally planned

2021 2022	Q3 Active Customers (in millions)
		+8.2%
	6.94	7.51
	Q3 2021	Q3 2022

Order rates remained high and well ahead of pre-pandemic levels

• Average order rate remains strong in spite of usual Q3 seasonality
  • US 4.10
  • INT- 3.64
• Strong ordering pattern from existing US customers during the summer

Average order value continued to rise, with Q3 posting highest AOV ever

• • AOV growth continued to accelerate in Q3, increasing 12 % YoY on a constant currency basis
• YoY drivers of AOV increase continued to be:
  • Selected price increases
  • Increased order sizes
  • Increased take-up of HelloFresh Market and surcharge offerings
  • Increased popularity of RTE offering

Sequential re-acceleration of constant currency revenue growth to 17.9% demonstrates resilience of the business

• Strong top-line growth across both segments
  • US CC growth of +24.1%
  • Intl with a CC growth of +10.2%

We continued to successfully mitigate very meaningful food price inflation through a number of measures

• Beneficial impact of price increases
• Leveraging strength of a well diversified procurement network
• Leveraging data advantages by factoring different degrees of inflation into menu decisions

YoY improvement in fulfilment expenses, primarily driven by better production efficiencies

• Improvement in production expenses through increased productivity, across both segments
• Movement in other fulfilment expenses largely offsetting each other

Q3 contribution margin expanded YoY to 24.5%, despite inflationary headwinds

• Meaningful improvement YoY in both margin and absolute terms
• Q3 typically seasonally lowest

1 Excl. SBC

Elevated marketing spend partly driven by seasonality, partly by higher CACs

• Q3 marketing expenses reflect seasonal investments in September into 'back-toschool' campaigns
• Comparative period still impacted by Covid tailwind
• Intl marketing expenses in addition influenced by ramp-up of new markets/ brands and US by Factor ramp-up
• Sequential increase in US CACs, partly driven by higher share of new customer acquisitions at Factor

1 Excl. SBC

We delivered an AEBITDA of €71.8m in seasonally low-margin Q3

• YoY AEBITDA development driven by:
  • Robust top-line growth
  • Expansion of contribution margin
  • Offset by higher marketing expenses (1.7)pp

Despite higher marketing expenses, US AEBITDA up YoY. Intl. impacted by new market launches/ramp-ups

We maintained our strong balance sheet while continuing to drive meaningful investments into the business

• (in € Millions) Cash flow from operations supported by seasonal working capital inflow in September
• Continued progress on capacity optimization projects driving €(123)m cash flow from investments
  • Key items include further build out of several facilities in the US (incl. for Factor) and in Intl.

We reiterate our FY 2022 outlook of 18% – 23% CC revenue growth and €460m - €530m AEBITDA

Q3 2022 Results | 19

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

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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

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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		9 months ended		Change %
	30-Sep 22	30-Sep 21	Change % YoY	30-Sep 22	30-Sep 21	YoY
Revenue	1,860.2	1,415.5	31.4%	5,732.7	4,413.4	29.9%
Procurement Expense	(644.5)	(489.8)	31.6%	(1,978.1)	(1,509.8)	31.0%
Fulfilment Expense	(768.0)	(613.8)	25.1%	(2,337.5)	(1,790.4)	30.6%
Contribution Margin	447.6	311.9	43.5%	1,417.0	1,113.3	27.3%
% of Revenue	24.5%	22.5%	2.0pp	25.1%	25.6%	(0.5)pp
Marketing Expense	(333.8)	(209.5)	59.3%	(980.7)	(640.9)	53.0%
G&A, other income and expenses	(112.6)	(61.0)	(84.6)%	(304.6)	(166.1)	(83.4)%
EBIT	1.2	41.4	(97.0)%	131.7	306.4	(57.0)%
% of Revenue	0.1%	2.9%	(2.9)pp	2.3%	6.9%	(4.6)pp
Financial Result	13.8	(5.4)	355.6%	29.8	(8.6)	446.5%
EBT	15.0	36.0	(58.3)%	161.5	297.8	(45.8)%
Income Tax (Expense) / Benefit	(12.9)	(12.9)	0.0%	(69.9)	(89.2)	21.6%
Net Income / (Loss)	2.1	23.1	(90.9)%	91.6	208.6	(56.1)%

Reconciliation starting at EBIT EBIT 1.2 41.4 (97.0)% D&A 44.6 25.5 74.6% EBITDA 45.8 67.0 (31.6)% % of Revenue 2.5% 4.7% (2.3)pp Special Items 6.4 4.0 62.5% SBC 19.6 8.9 121.4% AEBITDA 71.8 79.8 (10.0)% % of Revenue 3.9% 5.6% (1.8)pp 131.7 306.4 (57.0)% 113.1 65.9 71.7% 244.8 372.3 (34.2)% 4.3% 8.4% (4.2)pp 15.7 7.8 101.0% 56.6 16.6 240.4% 317.1 396.8 (20.1)% 5.5% 9.0% (3.5)pp

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Balance Sheet & Cash Flow Statement

In MEUR	As at 30-Sep 22	As at 31-Dec 2021
Assets
Non-current assets	1,593.0	1,055.5
Cash and cash equivalents	603.7	827.1
Other current assets	407.6	326.0
Total assets	2,604.3	2,208.6
Equity and liabilities
Equity	957.0	896.6
Non-current liabilities	631.8	486.7
Current liabilities	1,015.5	825.3
Total equity and liabilites	2,604.3	2,208.6

In MEUR	As at 30-Sep 22	As at 30-Sep 21
Cash and cash equivalents at the beginning of the period	642.2	933.4
Net Cash flows from operating activities	88.1	85.2
Net Cash flows from investing activities	(122.8)	(57.5)
Net Cash flows from financing activities	(15.3)	(8.5)
Effects of exchange rate changes and other changes on cash and cash equivalents	11.5	2.5
Cash and cash equivalents at the end of the period	603.7	955.1

Share Count

As of September 30, 2022

Types of share	Ordinary shares
Stock exchange	Frankfurt Stock Exchange
Market Segment	Regulated Market (Prime Standard)
Number of shares issued	171,799,994
Number of shares outstanding	171,560,240

Employee Incentive Plan	Options	RSU	Total
Vested (in mn)	7.5	0.1	7.6
WAEP (in EUR) - vested shares	15.22	—	14.95
Unvested (in mn)	3.1	1.3	4.4
WAEP (in EUR) - unvested shares	44.78	—	31.39
Outstanding (in mn)	10.6	1.5	12.1
WAEP (in EUR)	23.83	—	20.96

1. Weighted average exercise price

Marketing spend as % of net revenue still coming down over longer periods of time

Q3 2022 Results | 27

2018