Delivery Hero Se · XETR:DHER
Delivery Hero — Q2 2024 Earnings Presentation
44 slides from Delivery Hero's earnings presentation, Aug 29, 2024
Slide 1: Q2 2024 Trading Update
Q2 2024 Trading Update 29 August 2024
Slide 2: Table of contents
Table of contents 01 Trading Update 02 Half Year Results 03 Case Studies 04 Outlook 05 Appendix 2
Slide 3: Q2 2024 Key Highlights
Q2 2024 Key Highlights GMV grew 7% YoY in Q2 ‘24 finishing the quarter with 10% YoY in June. GMV outside of Asia grew 23% YoY1 Total Segment Revenue growth of 20% YoY1 in Q2 ‘24 exceeding GMV development Glovo with positive adj. EBITDA in June, contributing to the Group’s adj. EBITDA uplift of €231m
Slide 4: Healthy topline development in Q2 2024
Healthy topline development in Q2 2024 GMV (€bn) Total Segment Revenue (€bn) 7% 20% 5% 18% 11.9 3.1 11.1 2.6 Q2 ’23 Q2 ’24 Q2 ’23 Q2 ’24 Key highlights § Positive GMV development in Q2 2024 mainly driven by increase in order volumes § Strong double-digit Total Segment Revenue growth driven my multip
Slide 5: Double-digit revenue growth across the majority of our business segments
Double-digit revenue growth across the majority of our business segments Europe Revenue (€m) MENA Revenue (€m) Asia Revenue (€m) 22% 31% 9% 21% 31% 7% 458 875 907 967 378 641 Q2 ’23 Q2 ’24 Q2 ’23 Q2 ’24 Q2 ’23 Q2 ’24 Americas Revenue (€m) Integrated Verticals Revenue (€m) 25% 13% 22% 11% 654 223 196
Slide 6: Q2 2024 Europe Platform business
Q2 2024 Europe Platform business +19% GMV (€bn) +19% Key Highlights 2.2 § Double-digit order growth driving best-in 2.1 1.8 1.8 1.8 1.8 2.0 class GMV development among European 1.5 1.6 1.6 1.6 peers 1.3 1.3 1.3 § Growing AdTech business, generating 2021 2022 2023 2024 NCR1 of 3.2% of GMV (excl. Glov
Slide 7: Q2 2024 MENA Platform business
Q2 2024 MENA Platform business GMV (€bn) +28% excl. hyperinflation accounting +27% Key Highlights incl. hyperinflation accounting 3.1 2.7 2.7 2.6 2.5 2.2 2.4 2.2 § Outstanding GMV topline development, 1.8 1.9 2.0 3.2 driven by strong consumer demand and 1.8 1.5 1.6 2.3 2.7 2.7 2.7 continuous enhance
Slide 8: Q2 2024 Asia Platform business
Q2 2024 Asia Platform business GMV (€bn) -5% -8% Key Highlights § GMV impacted by competition in South 6.7 6.5 6.9 6.5 6.8 6.7 6.5 6.2 6.4 6.3 6.1 Korea. First signs of recovery in the rest of 5.6 5.7 5.1 Asia with GMV growth QoQ § Positive revenue growth of 9% despite high delivery fee promotions d
Slide 9: Q2 2024 Americas Platform business
Q2 2024 Americas Platform business GMV (€m) +14% excl. hyperinflation accounting +11% Key Highlights incl. hyperinflation accounting 831 802 747 764 707 713 709 682 637 553 § Healthy GMV development driven by 477 510 861 double-digit order growth. While Argentina 447 417 674 780 672 751 772 776 rema
Slide 10: Q2 2024 Integrated Verticals
Q2 2024 Integrated Verticals GMV (€m) +24% excl. hyperinflation accounting +21% Key Highlights incl. hyperinflation accounting 672 645 615 586 557 522 531 486 426 450 § Continued high GMV growth mainly 358 681 driven by strong volume development, 318 648 259 496 521 531 542 603 549 with >500 daily o
Slide 11: Gross Profit margin development within the Platform business
Gross Profit margin development within the Platform business Platform business Gross Profit margin as % of GMV Key Highlights 12% § Gross Profit margin of the Platform 10% business stable at 7.6% in Q2 ‘24. Further margin expansion expected in H2 ‘24 8% § Gross Profit margin in MENA and Americas alr
Slide 12: Table of contents
Table of contents 01 Trading Update 02 Half Year Results 03 Case Studies 04 Outlook 05 Appendix 12
Slide 13: Half Year Results
Half Year Results
Slide 14: Significant earnings growth and positive operating cash flow
Significant earnings growth and positive operating cash flow GMV(€bn) Total Segment Revenue (€bn) 6% 19% 22.3 23.7 6.0 5.1 H1 ’23 H1 ’24 H1 ’23 H1 ’24 Adj. EBITDA (€m) Operating Cash Flow1 (€m) Cashflow uplift of €280m 103 240 Adj, EBITDA uplift of €231m -177 9 H1 ’23 H1 ’24 H1 ’23 H1 ’24 Note: YoY
Slide 15: Reconciliation of adjusted EBITDA to IFRS net result
Reconciliation of adjusted EBITDA to IFRS net result Values in €m Cash relevant Non-Cash relevant Of which €226m relate to provisions for antitrust & 240 other legal matters (293) (69) (66) (142) (98) (720) (163) (129) Adjusted Management D&A Leasing Net interest Income SBC D&A excl. Others Net resu
Slide 16: Positive cash development in H1 2024
Positive cash development in H1 2024 Values in €m (134) 240 (74) 175 (125) 96 (82) 1,659 1,756 1,756 1,659 Cash & cash Adj. EBITDA CAPEX Leasing Taxes paid Change in Net interest Others Cash & cash equiv. end of Working Capital paid equiv. end of FY'23 H1'24 Comment § Change in Working Capital: posi
Slide 17: Ample liquidity position combined with a balanced debt maturity profile
Ample liquidity position combined with a balanced debt maturity profile Cash (€m) Debt maturity profile (€m) Comment § €1.8bn in cash post recent refinancing, minority disposal, convertible repayments and equity raise (Uber investment) 1,8051 § €3.8bn in outstanding convert. bonds, at a weighted ave
Slide 18: Free Cash Flow break-even already reached in H1 2024
Free Cash Flow1 break-even already reached in H1 2024 (in €m) H1 2023 H1 2024 GMV 22,283 23,687 Adj. EBITDA 9 240 % GMV 0.0% 1.0% Capex (114) (135) % GMV -0.5% -0.6% Lease payments (IFRS16) (73) (74) % GMV -0.3% -0.3% Positive Working Capital effects in H1 Taxes Paid (117) (133) ‘24 expected to be %
Slide 19: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 19
Slide 20: South Korea
South Korea
Slide 21: Better customer experience and higher platform monetization
Better customer experience and higher platform monetization New user interface § More convenient and intuitive with OD and MP landing page combined § Greater choice for customers, thus higher conversion and customer loyalty rates § Currently being rolled out across the country New pricing methodolog
Slide 22: Resilient order dynamics despite competitive pressure
Resilient order dynamics despite competitive pressure Average order development +3% Free stacked- order delivery launched by competitor +14% Mar ‘24 Apr ‘24 May ‘24 Jun ‘24 Jul ‘24 Aug ‘24 § Competitive pressure intensified with free stacked-order delivery launched by main competitor at the end of M
Slide 23: YoY growth recovering after challenging April and May
YoY growth recovering after challenging April and May Rolling average order growth YoY1 Key Highlights 2% Several initiatives have restored order volume towards positive YoY development: 0% § Improved own delivery service and increased the logistics efficiency of our ecosystem § Enhanced the custome
Slide 24: Talabat
Talabat
Slide 25: Talabat at a glance
Talabat at a glance Multi-vertical ecosystem Category leader in MENA Strong financial profile • Category-leading integrated food delivery and >€5bn GMV quick commerce platform with leading category Iraq positions in 8 highly attractive countries across FY 2023 MENA Jordan • GMV of €5bn+ with double-
Slide 26: Profitability path
Profitability path
Slide 27: Strong progress on profitability expected in FY 2024
Strong progress on profitability expected in FY 2024 Adj. EBITDA (in €m) on Group level FY 2024 Group ambition Annualized Group Annualized Group Annualized Group Profitable Platform on track to increase adj. EBITDA adj. EBITDA adj. EBITDA the annualized adj. EBITDA from €1.2bn in of neg. ~€0.1bn of
Slide 28: Table of contents
Table of contents 01 Trading Update 02 Half Year Results 03 Case Studies 04 Outlook 05 Appendix 28
Slide 29: Delivery Hero Group confirms outlook for FY 2024
Delivery Hero Group confirms outlook for FY 2024 Gross Profit to exceed GMV 7-9% YoY GMV growth as margins continue to expand Total Segment Revenue 18-21% YoY €725-775m Despite accelerated Adj. EBITDA investments in South Korea Clear focus on building a Free Cash Flow Positive successful and highly
Slide 30: Long-term ambitions confirmed
Long-term ambitions confirmed Growth Leadership Innovation Profitability Achieve >€200bn GMV #1 player in #1 preferred Achieve 5–8% adj. in the long-term all markets1 delivery app1 EBITDA/GMV margin2 by 2030 We plan to grow our GMV substantially, invest in tech & innovation to further expand our lea
Slide 31: Table of contents
Table of contents 01 Trading Update 02 Half Year Results 03 Case Studies 04 Outlook 05 Appendix 31
Slide 32: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2023 2024 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Delivery Hero Group GM V 11,198.9 11,083.8 22,282.7 11,693.4 11,299.1 45,275.2 11,789.3 11,898.0 23,687.4 % YoY Growth (RC) 1.5% 2.9% 2.2% 2.1% -0.5% 1.5% 5.3% 7.3% 6.3% % YoY Growth (CC) 2.1% 8.1% 5.1% 8.6% 3.3% 5.5% 8.9
Slide 33: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2023 2024 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Europe GM V 1,809.5 1,836.9 3,646.5 1,819.5 2,044.1 7,510.0 2,132.5 2,177.1 4,309.6 % YoY Growth (RC) 13.4% 15.0% 14.2% 13.4% 15.3% 14.3% 17.8% 18.5% 18.2% % YoY Growth (CC) 14.9% 17.0% 16.0% 15.3% 16.3% 15.9% 18.6% 19.3%
Slide 34: Very attractive long-term margins and high cash conversion
Very attractive long-term margins and high cash conversion (in % of GMV) FY 2022 FY 2023 FY 2024e FY 2030e Comments § Driven by pricing, advertising, order stacking and Gross Profit 6.0% 7.4% Improve 10% to 13% improving profitability of Dmarts § High focus on improved marketing efficiency while Mar
Slide 35: Organic cash flow generation comfortably exceeds upcoming maturities
Organic cash flow generation comfortably exceeds upcoming maturities € million (58) (595) (875) (750) (500) (1000) (1805) Pro-Forma Levered Free Cash Convertible Convertible Convertible Convertible Convertible Convertible Term Loan Cash Cash as of Flow Generation Bonds FY'25 Bonds FY'26 Bonds FY'27
Slide 36: Balance sheet (1/2)
Balance sheet (1/2) (in €m) Dec. 31, 2024 Jun. 30, 2024 Intangible assets 6,455.7 6,275.2 Property, plant and equipment 746.7 754.2 Decline mainly refers to the divestments of minority shareholdings Other financial assets 408.3 276.0 Other assets 26.2 18.0 Deferred tax assets 8.8 13.3 Investments ac
Slide 37: Balance Sheet (2/2)
Balance Sheet (2/2) (in €m) Dec. 31, 2023 Jun. 30, 2024 Share capital/Subscribed capital 270.7 284.3 Capital reserves 10,261.7 10,632.9 Retained earnings and other reserves –8,878.2 –9,663.3 Treasury shares –0.7 –0.0 Equity attributable to shareholders of the parent company 1,653.5 1,250.9 Non-contr
Slide 38: Cashflow Statement (1/2)
Cashflow Statement (1/2) (in €m) H1 20231 H1 2024 Net result –772.1 –720.2 Income tax expense 12.8 141.6 Income tax paid –103.3 –125.4 Amortization and depreciation 245.4 231.0 Impairment of goodwill and other intangible assets 28.0 0.9 Increase in provisions 18.2 239.9 Non-cash expenses from share-
Slide 39: Cashflow Statement (2/2)
Cashflow Statement (2/2) (in €m) H1 20231 H1 2024 Related to the divestment of DH’s Proceeds from capital contributions - 280.0 Taiwan operations to Uber Payments for the acquisition of non-controlling interests –276.8 - Increase of the Proceeds from bonds and borrowings 999.3 747.8 syndicated term
Slide 40: Basic concepts of hyperinflation accounting (IAS 29)
Basic concepts of hyperinflation accounting (IAS 29) § Hyperinflation refers to a situation where the prices of goods, services, interest and wages in a given country rise uncontrollably over a defined period of time. This is the case for Argentina, Turkey and Ghana1, all considered hyperinflationar
Slide 41: Hyperinflation accounting in Argentina and Turkey
Hyperinflation accounting in Argentina and Turkey Argentina Turkey Monthly CPI change Monthly de valuation EUR/ARS % Monthly CPI % Monthly de valuation EUR/TRY % 140% Q2 2024 30% Q2 2024 120% 25% 100% 20% 80% 15% 60% 10% 40% 5% 20% 0% 0% -5% Jan-23 Mar-23 May-23 Jul-23 Sep-23 No v-23 Jan-24 Mar-24 M
Slide 42: Definitions
Definitions § Gross Merchandise Value (GMV) is the total value paid by customers (including VAT, delivery fees, other fees and subsidies but excluding subscription fees, tips and delivery-as-a-service fee). § Total Segment Revenue is defined as revenue in accordance with IFRS 15, excluding the effec
Slide 43: Important Notice
Important Notice § 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, subscri
Slide 44: Investor Relations Contact
Investor Relations Contact Christoph Bast Bruno Priuli Lukas Herzog Loredana Strîmbei Head of IR Director IR Manager IR Specialist IR christoph.bast@deliveryhero.com bruno.priuli@deliveryhero.com Lukas.herzog@deliveryhero.com loredana.strimbei@deliveryhero.com ir@deliveryhero.com T: +49 (0)30 54 445