Company Presentation 15 th May 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 1 Gross Merchandise Value in 2017 292m Orders in 2017 +65% 1,2 Revenue Growth > 70bn 3 Current Food Delivery Market Taking on > 500bn 3 Food Services Opportunity Already Reaching 2.7bn People 4 Present in over 40 Countries Source: Company information; Euromonitor; World Bank; United Nations Notes: 1. Including Indian operations. 2. On a constant currency basis. 60% on a reported basis. 3. Management estimates. 4. 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 2 Online & Mobile Engagement Food Services in Delivery Hero s Countries > 500bn 1 Opportunity On-demand & Last-mile Logistics Takeaway Market in Delivery Hero s Countries > 70bn 1 Life-style, Urbanization & Convenience Delivery Hero GMV 3.8bn in 2017 Source: Company information; Euromonitor Notes: 1. Management estimates. 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. 6
2 Our Customers Consistently Increasing Order Frequency Across our Highly Attractive Markets INCREASING # OF ORDERS Average Monthly Orders per Active Customer Over Time +95% +32% +40% +33% +27% +19% 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 High and increasing order frequency across highly attractive markets over time 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 RETURNING CUSTOMERS Total Orders per Cohort per Year +31% Orders From 2017 Cohort Increasing First-time Customerbase Customer Experience driving our retention and frequency Returning customers continue to order more frequently Orders From 2016 Cohort Customer acquisitions continue to grow v Orders From 2015 Cohort +29% High Returning Customerbase Word of mouth and referrals continue to be a major driver of new customers We expect frequency to continue to increase 2015 2016 2017 Source: Company information Note: 1. Cohort refers to customers grouped by the calendar year 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
5 We Are One of the Global Leaders in Online Food Delivery with Significant Reach, Scale and Growth Source: World Development Indicators, 2018; rounded figures Notes: 1. Excluding foodora own-delivery only countries (Australia, Canada, France, Italiy, Netherlands, Norway) as well as Costa Rica and Paraguay. 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 Europe Asia Group 17.2 % 15.4 % 13.9 % 12.3 % 16.9 % 15.6 % 14.8 % 14.3 % 12.9 % Delivery fees 9% Premium placements 9% Credit card use 4% Other 4% Americas 10.2 % MENA Q1 2016 Q1 2017 Q1 2018 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 +52% Y-o-Y Growth Constant Currency Basis Revenues 1,2 +61% Y-o-Y Growth Constant Currency Basis +48% Y-o-Y Growth +38% Y-o-Y Growth +47% Y-o-Y Growth 82 89 1,083 1,150 157 171 59 60 66 71 781 832 892 960 106 116 126 135 44 46 49 571 598 673 70 79 86 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 2. Total segment revenues. 3. Growth rates are on a constant currency basis. 15
Q1 2018 Financial Highlights 89m ORDERS 1 1.2bn GROSS MERCHANDISE VALUE 1 171m REVENUES 1,2 +48% Y-o-Y Growth +52% Y-o-Y Growth 3 +61% Y-o-Y Growth 3 Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 2. Total segment revenues. 3. Growth rates are on a constant currency basis. 16
Growth across all Segments Europe MENA Asia Americas Average Order Value Average Order Value Average Order Value Average Order Value 15.9 15.5 11.2 10.7 16.4 15.0 13.8 12.5 Orders 1 17 +30% 22 26 +60% 41 12 +53% 18 6 +34% 8 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 +52% GMV 1 273 +27% 348 289 440 190 +40% 266 +21% 79 96 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Revenue 1 47 +25% +92% 57 59 30 29 +42% 41 +41% 10 14 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 17
Increasing Share of Revenues from MENA, Asia and Americas Q1 2017 Q1 2018 REVENUE SHARE PER SEGMENT 1 REVENUE SHARE PER SEGMENT Americas 8% Americas 8% Asia 25% Europe 41% Asia 24% Europe 34% MENA 26% MENA 33% +7 percentage points Source: Company information Notes: 1. For the like-for-like definition, please refer to the Definitions slide. 18
Strong Revenue Growth and Improving Adj. EBITDA Margins REVENUE ( m, aggregated) 1 1,2 +60% +65% Constant Currency Basis ADJ. EBITDA 2 ( m, aggregated) Europe MENA Asia Americas 544 H1 2016 H1 2017 47 6 16-28 -26 341 25 87 145 153 ADJ. EBITDA MARGIN 2 (%, 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. Including Indian operations. 19
We Remain on Track to Meet our IPO Guidance Guidance at IPO Status Growth as No.1 Priority >40% in short & mid-term Q1 order and revenue growth of 48% and 61% (on a >30% in the long-termv constant currency basis) v Developing ahead of plan with continued investment in Marketing, Product and Technology Invest for Leadership Further build global leadership ssssssssssssssssssssssssss Further build leadership positions across all markets v Continued consolidation of countries and focus on leadership positions Continued expansion into logistics in MENA and Americas v Build Tech & Product Leadership Invest in technology and continue to innovate to build an amazing takeaway v experience Continued investment in personalization, restaurant partner solutions, logistics v services, enhancing global data and machine learning Growing into Profitability Achieve breakeven in the course of 2018 v Achieve breakeven on a full-year basis in 2019 On plan (expected at the end of 2018) v On plan 20
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 21
APPENDIX 22
Orders: Quarterly Y-o-Y Growth Europe +23% +29% +33% 17 18 18 +27% 21 +30% 22 MENA +62% +60% 28 26 +71% 32 +60% 37 +60% 41 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Asia Americas +46% 12 +63% 13 +54% 15 +58% 17 +53% 18 +49% +42% +39% +36% +34% 6 7 7 8 8 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 23
GMV: Quarterly Y-o-Y Growth Europe MENA +24% +30% +34% 273 278 283 +28% 326 +27% 348 +59% 289 +63% 313 +59% 366 +51% 402 +52% 440 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Asia Americas +63% 190 +67% +40% 206 217 +47% 254 +40% 266 +91% 79 +73% +48% +42% +21% 94 94 102 96 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 24
Revenue: Quarterly Y-o-Y Growth Europe MENA +38% +33% +46% 47 48 49 +28% 55 +25% 59 +87% 30 +86% 33 +91% 42 +85% 49 +92% 57 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Asia Americas +87% +48% +101% 33 33 29 +55% +42% 40 41 +109% +80% +67% +41% +131% 10 12 12 14 14 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Source: Company information Notes: For the like-for-like definition, please refer to the Definitions slide. 25
Financial Calendar 2018 Date Jun 6, 2018 Event Annual General Meeting Sep 13, 2018 Half-Year Report 2018 Nov 7, 2018 Q3/9M Quarterly Statement 2018 26
Definitions Like-for-like figures include foodpanda and exclude the results of our disposed operations in the United Kingdom and India. The results of smaller acquisitions and disposals are not adjusted for. 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 like-for-like numbers are excluding Indian operations, with for full year 2017: Orders: 11.6 million. GMV: EUR 57.5 million. Revenues: EUR 9.9 million. Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants. Revenues presented for Delivery Hero represent the total segment revenues. 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. 27
Important Notice ALL FINANCIAL FIGURES INCLUDED IN THE FOLLOWING PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE. 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 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 Delivery Hero AG. Delivery Hero AG undertakes no obligation to update or revise this presentation. 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 Delivery Hero AG 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. The presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of Delivery Hero AG ( Forward-looking Statements ). These Forward-looking Statements can be identified by the use of forwardlooking 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 Delivery Hero AG s intentions, beliefs or current expectations concerning, among other things, Delivery Hero AG s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking 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 nor representation or warranty, express or implied, is made regarding future performance. The development of Delivery Hero AG s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on Delivery Hero AG 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 Delivery Hero AG 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 Delivery Hero AG 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 Delivery Hero AG in respect of the achievement of such Forward-looking Statements and assumptions. 28