Company Presentation 7 th February 2018 1
Our Clear Vision AMAZING FOOD Create an amazing takeaway experience AMAZING ORDERING AMAZING SERVICE 2
We Are an Online Food Ordering and Delivery Marketplace USER Order 2 3 Receive RESTAURANT 4 Cook 1 Search Customer Order Received (TBU) Eat 6 Customer Order Received (TBU) Deliver 5 RESTAURANT DRIVER 3
Delivery Hero in 2017 at a Glance: Best-in-class Performance and Global Leadership 3.8bn Gross Merchandise Value in 2017 292m Orders in 2017 +65% Constant Currency Basis +60% Y-o-Y Revenue Growth 1 in 2017 72bn 2 Growing & Taking on 563bn 4 Food Service Market Opportunity Already Reaching 2.7bn People 5 #1 Leader in 36 out of 41 Countries 3 as of 2017 Source: Company information; Euromonitor; World Bank; United Nations Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 2. Based on our IPO disclosure. 3. Market position denotes sum of all platforms (brands) in the respective country. Based on our IPO disclosure including Panama, excluding Costa Rica and divested countries (India, Kazakhstan, Georgia and Slovakia). 4. Source: Euromonitor International; Consumer Foodservice 2017ed; Foodservice data at foodservice value RSP, 2016 fixed exchange rate; data as of 2016. Referring only to Delivery Hero s countries as of 2016. 5. Source: Euromonitor International; Economies and Consumers; data as of 2016. 4
DELIVERY HERO HIGHLIGHTS 1 2 3 4 5 6 Large Market Opportunity Highly Attractive Markets Very Strong Business Fundamentals Leadership in Innovation and Technology Global Category Leadership Multiple Drivers for Long-term Growth 5
1 Unlocking the Large and Underpenetrated Food Market Mega Trends That Drive Additional Growth Total Food Market 7.5tn 3 in 2016 Online & Mobile Engagement On-demand & Last-mile Logistics Takeaway Market in Delivery Hero s Countries 72bn 1 in 2016 Foodservice Market in Delivery Hero s Countries 563bn 2 in 2016 Life-style, Urbanization & Convenience Delivery Hero GMV 2.6bn in 2016 Source: Company information; Euromonitor Notes: 1. Based on our IPO disclosure. 2. Source: Euromonitor International; Consumer Foodservice 2017ed; Foodservice data at foodservice value RSP, 2016 fixed exchange rate; data as of 2016. 3. Source: Euromonitor International; Economies and Consumers; Global Food Market represents Consumer Expenditure on Food and Catering, value at fixed 2016 exchange rates; data as of 2016. 6
Our Customers Consistently Increasing Order 2 Frequency Across our Highly Attractive Markets Laura (38), a working mother of 2 from Munich, getting Sushi for Friday dinner INCREASING # OF ORDERS Average Monthly Orders per Active Customer Over Time +95% +32% Shirilee (20), Farah (21) and Aasiyah (20), university students in Riyadh, catching up after a busy week of lectures +40% +33% +27% +19% Seung (42), a tech COO from Seoul, ordering his favourite lunch MENA excl. Turkey Turkey Asia Americas Europe excl. Nordics Nordics Month 1 Month 47 Month 1 Month 47 Month 1 Month 47 Month 1 Month 47 Month 1 Month 47 Month 1 Month 47 Juan (26) and Santiago (26), childhood gaming pals from Montevideo, taking a League of Legends break High and increasing order frequency across highly attractive markets over time Source: Images used under license from Shutterstock.com Note: Customer profiles are for illustrative purposes only. Source: Company information Note: Example: Cohort (March 2013) is shown; Month 1 refers to April 2013. 7
3 Highly Predictable Customer Behaviour With Accelerating Growth MAJORITY OF ORDERS FROM EXISTING COHORTS 1 Total Orders per Cohort and Year Orders From 2017 Cohort Increasing First-time Customerbase Orders From 2016 Cohort Orders From 2012 Cohort Orders From Earlier Cohorts 2011 2010 2009 2008 Before 2008 Orders From 2013 Cohort Orders From 2014 Cohort Orders From 2015 Cohort 2012 2013 2014 2015 2016 2017 High Returning Customerbase Source: Company information Note: 1. Cohort refers to customers grouped by the calendar month in which they first placed an order with Delivery Hero. 8
4 Leadership in Innovation and Technology PERSONALIZATION SEARCH & DISCOVERY RESTAURANT PARTNER SOLUTIONS LOGISTICS SERVICES PLATFORM DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION Discovery based on inspirational content and next generation browsing experience Personalisation based on consumer preferences and machine learning Recommendation to customers with targeted messages and tailored product experience Our goal is for the customer to ultimately outsource its food decision to us Restaurant-facing technology to deepen our relationship with our restaurant partners Tools for restaurants: Order transmission Order processing Partner integration Order tracking Restaurants performance reports Business Intelligence to enable better product and operational decisions Improvements in logistics efficiency (e.g. delivery rider scheduling, fleet management, etc.) via central services, enabling to cut delivery fee Our technology provides smart and efficient delivery processes: Rider scheduling Rider staffing Fleet management Route Optimization Real-time delivery estimates Localisation challenge solved with: Central services: Personalization and Search & Discovery Restaurant Partner Solutions Logistics Services Data warehouse & Analytics Performance Marketing Restaurant CRM (Salesforce) Finance systems Customer reviews Regional platforms: Cultural specifics Address systems Integrated payment systems 9
Largest Markets Leading Player 5 We Are the Global Leader in Online Food Delivery with Larger Reach, More Scale and Faster Growth # of Countries 8 41 1 12 1 9 #1 Positions 8 36 1 12 1 5 # of Orders c. 206m 3 c. 124m c. 86m c. 49m # of Restaurants >150k 4 c. 69k c. 70k c. 29k Revenue Growth 5 +66% 6 +52% +36% +45% Total Addressable Market 72bn 2 28bn N/A 13bn Expected GDP Growth 7 3.1% 1.7% 1.9% 1.5% 2016 Population 7 2.7bn 0.5bn 0.3bn 0.2bn Source: Company information; management estimates; Euromonitor; public filings Notes: 1. Market position denotes sum of all platforms (brands) in the respective country. Based on our IPO disclosure including Panama, excluding Costa Rica and divested countries (India, Kazakhstan, Georgia and Slovakia). 2. Based on our IPO disclosure. 3. 9 Months 2017. 4. Refers to number of active restaurants (i.e. restaurants that received at least 1 successful order in 2016) per leading brand as of December 2016, with an adjustment for Yogiyo in South Korea. 5. H1 2017 Like-for-Like (LfL) Year-over-Year (Y-o-Y) Growth (%) for LfL definition of Delivery Hero, please refer to the Definitions slide. 6. Total segment revenues. Group revenues H1 2017 of 253m, reconciling effect primarily relate to food, order and delivery services where the Group is considered to act as principal as results of country specific service arrangements. 7. Source: Euromonitor International; Economies and Consumers; 2016-2020 GDP CAGR at constant currency for GDP growth. 8. Just Eat, GrubHub and Takeaway.com data on countries and market positions based on 2017. 10
Multiple Drivers 6 for Long-term Growth and Profitability Ongoing Industry Consolidation 72bn Takeaway Market Going Online 1 Taking on 7.5tn Food Market Opportunity 2 Increased Frequency Through Better Experience Take-rate Expansion with Best Marketplace Markets Already +18% TAKE-RATE IMPROVEMENT Above 50% EBITDA Margin in Best Markets MARGIN EXPANSION M&A FOR SCALE FOOD MARKET TRANSFORMATION ONLINE TRANSITION TECHNOLOGY & INNOVATION Source: Company information; management estimates; Euromonitor Notes: 1. Based on our IPO disclosure. 2. Source: Euromonitor International; Economies and Consumers; Global Food Market represents Consumer Expenditure on Food and Catering, value at fixed 2016 exchange rates; data as of 2016. 11
BUSINESS MODEL & FINANCIALS 12
INCREASING INCREASING Our Business Model Is Designed for Multiyear Revenue Growth Orders Average Basket Size GMV Take-rate Revenue Recurring high quality cohorts combined with strong new customer growth and increasing frequency Take-rate expansion driven by market maturity and own delivery 13
Growing Take-rates With Significant Long-term Upside Potential REGIONAL TAKE-RATES 1 SEGMENT REVENUE 2017 BY SOURCE 2 16.8 % 16.8 % 15.8 % Credit card use 4% Other 4% Europe 14.8 % 13.5 % 14.6 % 13.6 % Delivery fees 9% Asia Group 11.5 % 12.2 % Premium placements 9% Americas 10.0 % MENA Q4 2016 Q4 2017 Commissions 75% Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 2. Total segment revenues. 14
Group Continuous Track Record of Growth Orders 1 GMV 1 Revenues 1,2 +51% Y-o-Y Growth +46% Y-o-Y Growth +41% Y-o-Y Growth +61% Y-o-Y Growth Constant Currency Basis 85 1,096 160 59 63 69 74 781 846 906 975 106 118 128 138 43 46 49 566 598 673 70 79 86 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 Q3 Q4 Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 2. Total segment revenues. 15
Growth across all Segments Europe Average Order Value 15.7 15.8 MENA Asia Americas Average Order Value Average Order Value Average Order Value 11.5 11.1 13.7 13.7 11.9 13.4 +63% Orders 1 57 +28% 73 75 123 45 +51% 68 20 +41% 28 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 GMV 1 900 +29% 1,160 869 +58% 1,370 617 +50% 924 +59% 232 370 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 +36% Revenue 1 147 199 82 +87% 153 87 +66% 145 25 +91% 47 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 16
Increasing Share of Revenues from MENA, Asia and Americas FULL YEAR 2016 FULL YEAR 2017 REVENUE SHARE PER SEGMENT 1 REVENUE SHARE PER SEGMENT Americas 7% Americas 9% +2 percentage points Asia 26% Europe 43% Asia 27% +1 percentage points Europe 37% MENA 24% MENA 28% +4 percentage points Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 17
Strong Revenue Growth and Improving Adj. EBITDA Margins REVENUE ( m, aggregated) 1 LFL 1,2 +60% +65% Constant Currency Basis ADJ. EBITDA 1 ( m, aggregated) Europe MENA Asia Americas 544 H1 2016 H1 2017 47 6 16-28 -26 341 25 87 145 153 ADJ. EBITDA MARGIN 1 (%, aggregated) -38-10 -70-24 -11-45 82 Group -47% -18% 147 199 Europe -40% -27% MENA 19% 25% FY 2016 FY 2017 Europe MENA Asia Americas Asia -108 % -36% Americas -99% -51% Source: Company information Notes: 1. Total segment revenues. 2. For the like-for-like definition, please refer to the Definitions slide. 18
We Remain on Track to Meet our IPO Guidance Guidance at IPO Status Growth as No.1 Priority >40% in short & mid-term FY order and revenue growth of 48% and 60% >30% in the long-term v Developing ahead of plan v with further room to invest in Marketing, Product and Technology Invest for Leadership Further build global leadership ssssssssssssssssssssssssss Further build leadership positions across all markets v M&A strategy towards consolidation of our leadership positions (i.e. 36/41 markets), and value accretive investments in complementary business models (positive impact on customers frequency) Expansion into logistics in MENA and Americas further builds leadership positions in these segments v Build Tech & Product Leadership Invest in technology and continue to innovate to build an Amazing Takeaway v Experience Growing into profitability Achieve breakeven in the course of 2018 v Achieve breakeven on a full-year basis in 2019 Investment in personalization, restaurant partner solutions, logistics services and our platforms, enhancing global data and v machine learning capabilities On plan (expected at the end of 2018) v On plan 19
DELIVERY HERO SUMMARY 1 2 3 4 5 6 v Substantial Market Opportunity Long-term Take-rate Upside v v v v v Highly Attractive Regions Leader in Product and Technology More Leadership Positions Best-in-Class Delivery Operations 20
APPENDIX 21
Orders 2017: Quarterly Y-o-Y Growth Europe MENA +60% +23% +29% +33% 17 18 18 +27% 21 +60% 26 +62% 28 +71% 32 37 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Asia Americas +56% 14 +56% 16 +47% 18 +47% 20 +49% 6 +43% +39% +36% 7 7 8 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 22
GMV 2017: Quarterly Y-o-Y Growth Europe +24% +30% +34% 273 278 283 +28% 326 MENA +59% 289 +63% 313 +59% 366 +51% 402 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Asia Americas +67% 205 +61% 221 +37% 232 +42% 266 +91% 79 +73% +48% +42% 94 94 102 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 23
Revenue 2017: Quarterly Y-o-Y Growth Europe +38% +33% +46% 47 48 49 +28% 55 MENA +87% 30 +86% 33 +91% 42 +85% 49 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Asia +52% Americas +99% 32 +85% +47% 36 36 42 +131% 10 +109% +80% 12 12 +67% 14 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 24
Financial Calendar 2018 Date Feb 7, 2018 Event Full-Year 2017 Trading Update Apr 26, 2018 Annual Report 2017 May 9, 2018 Q1 Quarterly Statement 2018 Jun 6, 2018 Annual General Meeting Sep 13, 2018 Half-Year Report 2018 Nov 7, 2018 Q3/9M Quarterly Statement 2018 25
Definitions All numbers are excluding UK operations (discontinued operations). Like for like presents Delivery Hero s comparative 2016 results as if the acquisition of foodpanda had occurred on 1 January 2016 and excludes contributions from operations reported in discontinued operations. In addition, please note that: No adjustments have been made for Hungerstation (first fully consolidated in July 2016). Asia KPIs exclude our former operations in China, which were sold in May 2016. All numbers are including India operations, with for full year 2017: Orders: 11.6 million. GMV: EUR 57.5 million. Revenues: EUR 9.9 million. Revenues presented for Delivery Hero represent the total segment revenues. Orders represent orders made by end consumers in the period indicated. Orders for our click-to-call operations have been estimated based on the number of phone calls made by users to restaurants through these click-to-call platforms in the relevant period that lasted 25 seconds or longer multiplied by 60%. Gross Merchandise Value (GMV) refers to gross merchandise value, which means the total value of orders (including VAT) transmitted to restaurants. GMV for our click-to-call operations have been estimated based on the number of phone calls made by users to restaurants through these click-to-call platforms in the relevant period that lasted 25 seconds or longer multiplied by 60% and by the average basket size for the orders placed through our Korean non-click-to-call online marketplaces during the same period. Adjusted (Adj.) EBITDA represents earnings before interest, taxes, depreciation and amortization adjusted for extraordinary expenses related to transactions and financings, our planned IPO, restructuring expenses and expenses related to major IT projects and for expenses for share-based payments. Adjusted (Adj.) EBITDA Margin refers to adjusted EBITDA divided by Revenues. 26
Important Notice ALL FINANCIAL FIGURES INCLUDED IN THE FOLLOWING PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE. THE 2014, 2015 AND 2016 DELIVERY HERO FINANCIAL INFORMATION AND THE 2015 AND 2016 FOODPANDA FINANCIAL INFORMATION IS AUDITED (UNLESS OTHERWISE INDICATED). For the purposes of this notice, presentation means this document, its contents or any part of it. This presentation 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 to enter into any contract or commitment or investment decision whatsoever. This presentation is neither an advertisement nor a prospectus and should not be relied upon in making any investment decision to purchase, subscribe for or otherwise acquire any securities. The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or any other information discussed verbally, or on its completeness, accuracy or fairness. The information in this presentation is of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither the Company nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information. This presentation is not an offer of securities for sale in the United States. The securities of the Company are not and will not be registered pursuant to the provisions of the US Securities Act of 1933, as amended (the Securities Act ) or with the securities regulators of the individual states of the United States. The securities may not be offered, sold or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from the registration and reporting requirements of the United States securities laws and in compliance with all other applicable United States legal regulations. The Company does not intend to register its securities under the Securities Act or to conduct a public offering of securities in the United States. Sales in the United Kingdom are also subject to restrictions. The securities are only available in the United Kingdom to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities in the United Kingdom will be engaged in only with, such relevant persons to whom it may lawfully be communicated ( Relevant Persons ). Any person in the United Kingdom who is not a Relevant Person should not act or rely on this presentation or any of its contents. Certain information (including industry, market and competitive position data) in this presentation is based on the Company s own internal research and management estimates. In addition, certain data points in this presentation are selective and may not necessarily be representative for the Delivery Hero Group. Such research, estimates and data points have been made in good faith and represent the current beliefs of members of management. The Company and those management members believe that such research, estimates and data points are founded on reasonable grounds. However, by their nature, research and estimates as well as the data points may not be correct or complete, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness. Accordingly, no representation or warranty, express or implied, is given that such research, estimates or data points are correct or complete. The presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of the Company ( Forwardlooking Statements ). These Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms believes, estimates, anticipates, expects, intends,, aims, plans, predicts, may, will or should or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding the Company s intentions, beliefs or current expectations concerning, among other things, the Company s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forwardlooking Statements involve significant risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and no representation or warranty, express or implied, is made regarding future performance. The development of the Company s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on the Company may differ materially from those made in or suggested by the Forward-looking Statements contained in this presentation or past performance. In addition, even if the development of the Company s prospects, growth, strategies and the industry in which it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of the Company s results, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-looking Statements only speak as at the date of this presentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoever is accepted by the Company in respect of the achievement of such Forward-looking Statements and assumptions. 27