HelloFresh SE — Investor Presentation 2023

Apr 27, 2023

Q1 2023 Results

April 27th, 2023

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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.

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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

Q1 2023 Results |

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Q1 2023 Highlights

We continue to invest in enhancing the customer proposition in meal kits

1 Group (excl. Youfoodz and GoodChop). Number of weekly recipes on offer ²Only for the meal-kits business

Our RTE vertical is very early in its lifecycle: Factor US will unlock significant additional capacity in H2

• Limited competition in D2C RTE due to strong defensibility of business model
• Improve RTE customer proposition by following HF's meal kit playbook
• Grow brand awareness and consideration strongly

We delivered 278m meals in Q1 2023, a sequential increase of 13%

• Meals (3)% down y-o-y, driven by y-o-y decline in active customers by c.(5)%, with comparative period still influenced by Omicron effect, as previously flagged
  • However, strong seasonal active customer growth by 1m or 14% q-o-q
  • Both segments contributed to positive sequential growth
• We have maintained consistently high order rates and further expanded meals per order, also

We have increased Q1 Average Order Value meaningfully year on year

• Group AOV increase of 8.9% in constant currency
• Both segments showed meaningful increase in AOV:
  • NA: 9.5% (CC)
  • Intl: 6.9% (CC)
• AOV increase driven primarily by:
  • Higher price per meal
  • More meals per order
  • Further increase in popularity of surcharge offerings and HF Market add-ons

Against a heavily impacted Omicron quarter in 2022, we delivered yet another record net revenue quarter, exceeding €2bn for the first time

• Well diversified revenue streams enabled positive revenue growth of 3%, despite challenging comparative period and soft macro environment
• Q1 NA CC revenue growth of +5.5%
• Q1 Intl CC revenue growth broadly stable with (0.5)%

Q1 procurement expenses are somewhat higher due to inflation and mix effects

• Procurement expenses increased by 1.4pp y-o-y driven by:
  • Continued y-o-y inflationary headwinds
  • Increased contribution of RTE to the mix (meal production is included in procurement for RTE)
  • More meals per order and higher take-up of HF Market add-ons
• While both of the latter two points increase relative procurement expenses, they are accretive to overall contribution margin

We significantly improved fulfillment expenses as % of net revenue by > 2pp y-o-y

• Continued sequential and y-o-y improvement in relative fulfillment expenses
  • NA : +3.8pp
  • Intl: +0.1pp
• Further structural efficiencies to be realized through
  • Production network maturity and optimization
  • FC technology and automation

We expanded contribution margin in Q1 to 26.3%

• Improvement in Q1 2023 contribution margin primarily driven by fulfillment efficiencies
• Further efficiencies targeted for the rest of 2023, primarily driven by additional production productivity gains

Marketing activity at a seasonal high in Q1, amounting to (20.4)% of revenue

• Front loaded marketing activities drove sequential increase in active customers by 1m at attractive ROI
• Comparative period still impacted by Covid

We delivered a Q1 2023 AEBITDA of €66m

• Overall, decent start of the year, considering strong sequential growth in active customers and successful contribution margin expansion
• Provides a solid basis to deliver on the outlook provided

We delivered a solid cash flow from operations of €112m and maintained our strong balance sheet

• €112m cash flow from operating activities supported by normal seasonal cash inflow from working capital
• Cash outflow from investing activities primarily consists of:
  • €(95.1)m capex
  • €(34.5)m final acquisition earn-out payment to former Factor shareholders
• Strong cash position at €467.2m; continued strong, largely unlevered balance sheet
• Capex profile somewhat front-end loaded during the year, as previously flagged

New segment reporting and AGM reminders

New Segment Reporting Annual General Meeting

• As of Jan 1, HFG's Canadian business has been brought under our US management reporting structure
• It has therefore moved from being previously included in the Intl segment to now being part of our North America segment

• Data for the comparative Q1 2022 period has been adjusted accordingly to enable like-for-like comparability

• HelloFresh is holding the 2023 Annual General Meeting on Friday, May 12, 2023

• The AGM will be held in a virtual format at https:// ir.hellofreshgroup.com/agm
• The AGM invitation is available at the link: Invitation to the Annual General Meeting 2023

North America: 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

Q1 2023 Results | 18

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

Q1 2023 Results | 19

Group: 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

Q1 2023 Results | 20

Profit and Loss Statement

3 months ended		Change %
31-Mar-23	31-Mar-22	YoY
2,016.1	1,915.4	5.3%
(722.8)	(661.3)	9.3%
(770.5)	(777.6)	(0.9)%
522.8	476.5	9.7%
26.3%	25.2%	1.1pp
(415.4)	(339.1)	22.5%
(116.4)	(81.7)	42.5%
(9.0)	55.7	(116.2)%
(0.4)%	2.9%	(3.3)pp
(16.4)	4.5	464.4%
(25.4)	60.2	(142.2)%
—	(22.3)	100.0%
(25.4)	37.9	(167.0)%

Reconciliation starting at EBIT
EBIT	(9.0)	55.7	(116.2)%
D&A	50.3	32.1	56.7%
EBITDA	41.3	87.8	(53.0)%
% of Revenue	2.0%	4.6%	(2.6)pp
Special Items	4.8	5.1	(5.9)%
SBC	20.0	6.4	212.5%
AEBITDA	66.1	99.3	(33.4)%
% of Revenue	3.3%	5.2%	(1.9)pp

Balance Sheet & Cash Flow Statement

In MEUR	As at 31-Mar-23	As at 31-Dec-22
Assets
Non-current assets	1,643.2	1,623.0
Cash and cash equivalents	467.2	504.0
Other current assets	366.2	408.2
Total assets	2,476.6	2,535.2
Equity and liabilities
Equity	951.8	959.6
Non-current liabilities	597.4	605.1
Current liabilities	927.4	970.5
Total equity and liabilites	2,476.6	2,535.2

In MEUR	Q1 2023	Q1 2022
Cash and cash equivalents at the beginning of the period	504.0	827.1
Net Cash flows from operating activities	112.1	198.2
Net Cash flows from investing activities	(129.4)	(93.3)
Net Cash flows from financing activities	(13.8)	(146.6)
Effects of exchange rate changes and other changes on cash and cash equivalents	(5.7)	10.3
Cash and cash equivalents at the end of the period	467.2	795.7

Share Count

As of March 31, 2023

Types of share	Ordinary shares
Stock exchange	Frankfurt Stock Exchange
Market Segment	Regulated Market (Prime Standard)
Number of shares issued	172,204,714
Number of shares outstanding	171,972,579

Employee incentive plan	Options	RSU	Total
Vested (in mn)	7.9	0.1	8.0
Unvested (in mn)	4.1	3.6	7.7
Outstanding (in mn)	11.9	3.7	15.7
WAEP1 (in EUR) Vested	18.06	—	17.80
WAEP1 (in EUR) Unvested	34.24	—	18.09
WAEP1 (in EUR)	23.58	—	17.95