COMPANY PRESENTATION AUGUST 2017

Transcription

1 COMPANY PRESENTATION AUGUST

2 Disclaimer This document has been prepared by HelloFresh SE (the Company and, together with its subsidiaries, the Group ). All material contained in this document 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 or any other person 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 Company or any of its officers, directors, employees, affiliates, agents or advisers, in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company nor any other Group company undertakes any obligation to update this document or to correct any inaccuracies in this document. Information contained in this document may be 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 as being accurate. All statements in this report 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. 2

3 Our mission: we change the way people eat FOREVER! We believe everyone deserves honest, natural, delicious and healthy food We celebrate fresh ingredients and making magic in the kitchen: there is a chef in everyone Food brings people together. Good food allows us to live long. Great food lets us enjoy every bite of life 3

4 We are the largest and the only global player #2 Clear market leader in c.60% of TAM 3 representing c.40% of revenue today Significantly outpacing Blue Apron on nearly every dimension Recently launched 5 Up to 13m meals served per month 1 1.3m active customers 2 53% >7,500 in 7 markets 3 Q2 YoY tons food revenue growth handled monthly 4 >14.5k recipes in database ; management estimates 1. As of May Active customers refers to the number of uniquely identified customers who have received at least one box within the last three months ended June 30, 2017 (including first-time customers, customers who received a free or discounted box and customers who ordered during the relevant period but cancelled their subscription before period end). 3. Based on management estimate; in markets as indicated on map plus Switzerland. 4. Assuming ~600 grams per meal and up to 13m meals per month, as of May 2017; tonnage might be different from month to month. 5. Within the last 15 months as of June

5 HelloFresh's business model combines growth at scale with powerful unit economics 1 From 0.3m active customers in Q to 1.3m in Q Strong growth with highly predictable Steady order rate consumer behavior 15% increase in average order value since Q Stable retention profile 2 ~14% points of consistent contribution margin expansion 1 over last 6 quarters with significant further upside Attractive target margins at scale through Meaningful fixed cost leverage c. 7pp of Q demonstrated operating leverage contribution margin 2 Mid-term to long-term AEBITDA margin target of 12-15% 3 3 Scalable and cost-efficient customer acquisition model with high marketing ROI Overall constant CACs while significantly scaling customer acquisitions >3x ROI on marketing investment within 3 years 4 Net source of cash inflow Negative working capital with minimal Operating cash flow margin repeatedly higher than inventory EBITDA margin 5 Significant top and bottom line growth potential Markets largely underpenetrated Strong margin potential at scale 1. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation; contribution margin is shown as % of revenue. 2. Relevant expenses represent fixed and overhead expenses. 3. AEBITDA is calculated by adjusting EBITDA for special items and holding fees (special items include share-based compensation); AEBITDA margin is defined as % of revenue; holding fees are eliminated on group level. 5

6 As a result of our massive customer growth (M) ACTIVE CUSTOMERS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Q1 effect 1. Active customers refers to the number of uniquely identified customers who have received at least one box within the last three months (including first-time customers, customers who received a free or discounted box and customers who ordered during the relevant period but cancelled their subscription before period end). 6

7 ..we are now the largest player globally 1 ( M) REVENUE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Compared to BA Q revenue of $238m. 2. Revenue post promotional discounts, customer credits, refunds and excluding VAT. 7

8 Our strong customer base is characterized by very stable order rates and increasing order value STABLE ORDER RATES INCREASING AVERAGE ORDER VALUE AVERAGE ORDER RATES 1 AVERAGE ORDER VALUE ( ) 2 Stable Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Average order rate is defined as number of deliveries divided by number of active customers in a given period. 2. Average order value is defined as revenue before refunds divided by number of deliveries in a given period. 8

9 Our business model provides for highly attractive CLV / CAC dynamics and customer economics CLV 1 AND CAC 2 >3x >2x >1x Avg. CAC 6mth 12mth 18mth 24mth 30mth 36mth invested in marketing returns > 250 of cumulative profit contribution after 3 years 1. The cumulative customer lifetime value (CLV) reflects cumulative revenue per customer and cohort acquired between 2014 and 2016 multiplied by our contribution margin as % of revenue for Q2 2017, adjusted for the level of discounting in a given period. For a customer to be included in the calculation for a particular column, the length of time that has elapsed since the customer first purchased from us must be at least as long as the time period indicated for such column. Customers acquired after December 31, 2016 are not included in any column calculations because their first purchase occurred less than six months before the end of the second quarter of CAC (customer acquisition costs) is calculated as total marketing spend excluding customer care and overhead expenses for the period from January 1, 2014 to June 30, 2017 divided by total number of new customers acquired over that period. 9

10 Attractive unit economics with strategic goal to break-even within the next 15 months CONTRIBUTION MARGIN 1 GROUP AEBITDA 1 % REVENUE % REVENUE (7.4%) 14.3% 17.8% 17.4% 18.2% 20.3% 22.1% (19.3%) (12.3%) (14.0%) (10.3%) (14.4%) 8.2% (32.1%) Q4 Q1 Q2 Q3 Q4 Q1 Q Q4 Q1 Q2 Q3 Q4 Q1 Q Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation; contribution margin is shown as % of revenue. 2. AEBITDA is calculated by adjusting EBITDA for special items and holding fees (special items include share-based compensation); AEBITDA margin is defined as % of revenue; holding fees are eliminated on group level. 10

11 US: industry leading growth and consistent margin expansion OPERATIONAL AND FINANCIAL KPIs Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Active Customer (m) Average Order Rate Average Order Value ( ) % Revenue 1 ( m) YoY revenue growth 1 568% 371% 213% 133% 120% 95% 100% % Contribution margin 2 ( m) Revenue 2,3 AEBITDA 4 ( m) (14%) 5% 13% 13% 15% 19% 22% (4.9) (55%) (25%) (18%) (16%) (10%) (19%) (6%) % Revenue (20.0) (15.6) (12.5) (11.9) Q Q Q Q Q Q Q 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. 3. Contribution margin is shown as % of revenue. 4. AEBITDA is calculated by adjusting EBITDA for special items and holding fees (special items include share-based compensation); AEBITDA margin is defined as % of revenue; holding fees are eliminated on group level. (7.9) (22.8) (8.5) 11

12 International: operations at scale benefit from unit economics enhancement OPERATIONAL AND FINANCIAL KPIs Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Active Customer (m) Average Order Rate Average Order Value ( ) % Revenue 1 ( m) YoY revenue growth 1 204% 147% 78% 35% 12% 7% 11% Contribution margin 2 ( m) % Revenue 2,3 20% 22% 23% 23% 22% 24% 24% AEBITDA 4 ( m) (19%) (15%) (5%) (9%) (7%) (5%) (5%) % Revenue (13.6) (12.0) (3.9) (6.2) (5.4) (3.9) (4.2) Q Q Q Q Q Q Q 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. 3. Contribution margin is shown as % of revenue. 4. AEBITDA is calculated by adjusting EBITDA for special items and holding fees (special items include share-based compensation); AEBITDA margin is defined as % of revenue; holding fees are eliminated on group level. 12

13