Talabat Holding Plc · DFM:TALABAT
Talabat — Investor Day (November 2024)
127 slides from Talabat's investor day presentation, Nov 7, 2024
Slide 1: talabat Capital Markets Event
October 2024 talabat Capital Markets Event THE LEADING ON-DEMAND DELIVERY PLATFORM IN MENA Updated on 7 November 2024 1
Slide 2: Legal disclaimer
Legal disclaimer This presentation has been prepared solely for use at this meeting. By attending the meeting where this presentation is made or accessing this presentation, you agree to be bound by the following limitations. This material is given in conjunction with an oral presentation and should
Slide 3: Today's presenters
Today’s presenters TOMASO RODRIGUEZ CEO KHALED JEREMY ALFAKESH DOUTTE CFO CBO WASSIM YI-WEI MAKAREM ANG CPO SVP Grocery & Retail 3
Slide 4: Agenda & presenters
Agenda & presenters 1 Introduction & Key Company Highlights p. 5 Tomaso Rodriguez 2 Category Overview p. 28 Jeremy Doutte 3 Product & Service Offering – Part I p. 35 Jeremy Doutte | Tomaso Rodriguez Break 3 Product & Service Offering – Part II p. 60 Wassim Makarem | Khaled Alfakesh | Jeremy Doutte 4
Slide 5: Introduction & Key Company Highlights
Introduction & Key Company Highlights 5
Slide 6: Empowering our communities
EMPOWERING OUR COMMUNITIES Key company highlights We proudly deliver to the region that delivers We’re the Orange ones 6
Slide 7: talabat at a glance
talabat at a glance The leading on-demand delivery platform in MENA(1) Food delivery and Grocery & Retail Multi-vertical ecosystem A leading tech player in the region delivery leader in MENA • Category-leading on-demand online food ordering, delivery, takeaway and Grocery & Retail marketplace in 8 h
Slide 8: Attractive combination of scale, category leadership, growth and profitability
Attractive combination of scale, category leadership, growth and profitability Largest Strong Growth Rapid GMV ~51% Platform ~$6.1Bn Growth GMV CAGR in the MENA at Scale (2015-23) Region (1) GMV in 2023 Attractive Loyal ~4x Increasing Diverse +4.4x Customer GMV per average Number of Fundamentals Cho
Slide 9: Journey to MENA's #1 on-demand delivery platform
Journey to MENA’s #1 on-demand delivery platform Acquisition of InstaShop, 1M expected to ~51% orders / day! close in 2025(2) 2015- 2023 CAGR talabat partners with ADCB talabat to launch GMV launches co- branded PostPaid Key company highlights and credit Acquisition of Launch talabat card Carriage o
Slide 10: Key company highlights
Key company highlights 1. Large and fast expanding addressable market with secular tailwinds 2. Clear leader in all our MENA countries of presence (1) 3. Powerful network effects underpinned by our leading value proposition 4. Fully multi-vertical ecosystem driving loyalty, platform spend and expans
Slide 11: Vast and under-penetrated category opportunity
1 Vast and under-penetrated category opportunity with proven resilience and multiple secular tailwinds Category size(1,2) CAGR 23-29E 92%(4) urbanisation rate in talabat countries c.$274Bn 9% Overall Foodservice Demand boosted by rising population in the region and Retail Forecasted 4x growth(5) vs.
Slide 12: Leading position across all our countries
2 Leading position across all our countries #1 category positions across 8 countries / 70M+ addressable population(1,3) Total addressable Region Country Relative category share(2) population(3): 71.1M talabat countries Monthly orders per UAE capita(4): 0.42x Iraq Jordan Kuwait Total addressable Bahr
Slide 13: Powerful network effects fueling growth
3 Powerful network effects fueling growth, service quality and platform loyalty 6.5x >6M Average order frequency(1) More Active customers(3) Customers More More sales orders Key company highlights Diverse Better delivery choice experience 4.9x >64k Increased coverage >115k <30 min Active riders(3) A
Slide 14: Customer value proposition continuously refined
3 Customer value proposition continuously refined across three critical dimensions… Selection Experience Value What matters? What matters? What matters? Targeted Rewards Quality Quantity Variety Convenience Reliability Personalisation Subscription offers programs Key company highlights High savings
Slide 15: Ever increasing pool of highly loyal customers
Customers Partners Riders 3 …resulting in an ever increasing pool of highly loyal customers Our customers increasingly spend more with us every year… …resulting in a consistent increase in order frequency over time GMV from cohorts(1); Multiple indicates GMV growth within cohort vs. Cumulative numbe
Slide 16: Partner of choice and profitable growth channel
Customers Partners Riders 3 Partner of choice and profitable growth channel to partners # of Active partners Highly efficient marketing channel 4.9x average return on ad spend(1) # Local ~0.3k ~9.3k shops +4.4x >64k (3) Value-adding Analytics suite providing customer insights 2019-24 business partne
Slide 17: Safe and flexible work for riders
Customers Partners Riders 3 Safe and flexible work for riders, empowered by tech- enabled efficiency Highly attractive proposition… …leading to increased Active rider numbers (3) Accessible ~90%(1) of riders sourced via third party partners ~115k 64% 2019-24 CAGR ~87k Flexible Riders have full contr
Slide 18: Multi-vertical ecosystem provides platform for future growth
4 Multi-vertical ecosystem provides platform for future growth The Customer Journey on talabat Food tMarts Local shops Orders Food Expands to Grocery & Retail • Extensive choice among • Large choice of products 55,000+ selected restaurant from 9,300+ Local shops(2) 3.8 partners 13.0 • 129 strategica
Slide 19: Profitable Grocery & Retail business
4 Profitable Grocery & Retail business expands our TAC and increases long-term earnings potential Footprint UAE KUWAIT QATAR BAHRAIN OMAN JORDAN EGYPT IRAQ tMarts Local shops • talabat owns and operates delivery-only stores • Marketplace that connects customers to favourite tMart store model (strate
Slide 20: Data engine at the heart of talabat's technology
5 Sophisticated, difficult-to-replicate data engine that improves with scale at the heart of talabat’s technology CUSTOMERS RIDERS PARTNERS PICKERS Key company highlights PERSONALISATION LOGISTICS OPTIMISATION EFFICIENT ADS AND DEAL TARGETING WORKFLOW OPTIMISATION Large customer Advanced algorithms
Slide 21: Continuous innovation enhancing customer experience
5 Continuous innovation that enhances the customer experience and translates into directly measurable results Personalisation Trust and Safety Fraud Proprietary personalisation and Most trusted platform in MENA Efficient fraud detection and prevention 13 ranking algorithm system Terabytes $14M+ ~$6M
Slide 22: Attractive financial profile and strong free cash flow
6 Attractive financial profile with solid growth track-record and strong free cash flow generation GMV ($M) Free Cash Flow(1) ($M) 301 6,062 5,172 226 3,946 Key company highlights 3,455 168 2,865(3) 138 2021 2022 2023 H1 2023 H1 2024 2022 2023 H1 2023 H1 2024 Reported Growth (%) Constant Currency Gr
Slide 23: Multiple levers for sustained growth and profitability
7 Multiple levers for sustained growth and profitability gains A B C D Powerful macro Deeper category Turbo-charging Deeper supply tailwinds penetration customer loyalty partnerships ⚫ Outsized population ⚫ New verticals and ⚫ Frequency ⚫ AdTech solutions growth product innovation enhancing initiati
Slide 24: Upside from deeper category penetration and multi-verticality
7 Huge upside potential remaining from deeper category penetration and multi-verticality adoption Significant headroom remaining Huge upside potential from penetrating adjacent verticals Total addressable population(1) 18M 71M 54M 22% 1% 1% Average monthly orders per capita(2) Customer adoption Cust
Slide 25: Turbo-charging loyalty with frequency enhancing initiatives
7 Turbo-charging loyalty with frequency enhancing initiatives FinTech Loyalty 14% 249% 22% 129% PostPaid Frequency(1) uplift User CAGR(3) pro Frequency(2) uplift User CAGR(3) ⚫ Allowing customers to order food and pay for it later (within 30 days) for no extra cost ⚫ Subscription service providing f
Slide 26: Deepening supply partnerships through ad partnerships
7 Deepening supply partnerships by boosting returns for restaurant partners through strategic ad partnerships Highly profitable AdTech product… …reducing acquisition costs for restaurant partners… …through our innovative advertisement products Annual AdTech revenue ($M)(1,2) Customer acquisition cos
Slide 27: Key company highlights
Key company highlights 1. Large and fast expanding addressable market with secular tailwinds 2. Clear leader in all our MENA countries of presence (1) 3. Powerful network effects underpinned by our leading value proposition 4. Fully multi-vertical ecosystem driving loyalty, platform spend and expans
Slide 28: Category Overview
Category Overview 28
Slide 29: Most attractive macro tailwinds globally
Our countries are characterised by the most attractive macro tailwinds globally… Fast growing population… …supporting strong macro economic growth… …providing high disposable income Forecast population growth Forecast real GDP per capita growth Forecast real disposable income per capita growth 2023-
Slide 30: Attractive regional fundamentals
…underpinned by very attractive regional fundamentals Concentrated urbanised regions… …with a young population… …and higher internet and mobile subscriptions Urbanisation rate(1) Average age distribution(3) Internet penetration(5) 2023 (% of population living in urban area) 2023 (% of population by
Slide 31: Foodservice and Grocery & Retail opportunity
Foodservice and Grocery & Retail represents a massive and a vastly underpenetrated opportunity Foodservice Grocery & Retail Fastest growing countries… talabat countries Foodservice and Grocery & Retail spend CAGR CAGR 23-29E 23-29E c.$229Bn 8% Overall Retail c.2x growth c.2x growth c.$45Bn 11% vs. W
Slide 32: Leading position across all our countries
Leading position across all our countries #1 category positions across 8 countries / 70M+ population(1,4) Relative category share Total addressable talabat countries Region Country Foodservice(2) Grocery & Retail(3) population(4): 71.1M Monthly orders per UAE capita(5): 0.42x Iraq Jordan Kuwait Tota
Slide 33: Leading platform in the attractive GCC countries
We have built the leading platform in the attractive GCC countries... Attractive and growing Strong category leader in a mature Successful strategy to continue category opportunity region with significant upside remaining growing talabat Category size(1) $Bn 7.8% #1 Continuing to apply proven 2023-2
Slide 34: Immense upside in less mature non-GCC countries
…and see an immense upside in the less mature non-GCC countries Massive underpenetrated Significant upside to Clear roadmap to grow talabat category increase penetration Expanding Expanding proven proven playbook playbook atat Category size(1,2) GCC vs. non-GCC online penetration(4) $Bn GCC region n
Slide 35: Product & Service Offering
Product & Service Offering 35
Slide 36: Customers
Customers CUSTOMERS 36
Slide 37: Fast growing, large and high value customer base
Customers Fast growing, large and high value customer base… Increasing number of Active customers (M) >6.0 ~25% CAGR(1) ~31% Share of customers using multiple verticals(2,3) Product & service offering ~2.2 7.6% Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jul-24 Participation rate in talabat pro programme sug
Slide 38: Attractive cohorts strengthened by loyalty
Customers ...with attractive cohorts strengthened by loyalty Our customers increasingly spend more with us every year… …reflecting a consistent increase in order frequency over time GMV from cohorts(1); Multiple indicates GMV growth within cohort vs. Cumulative number of orders per cohorts(1) GMV of
Slide 39: We understand what our customers want
Customers We understand what our customers want… Selection Experience Value What matters? What matters? What matters? Targeted Rewards Quality Quantity Variety Convenience Reliability Personalisation Subscription offers programs Product & service offering High savings Preferred platform Huge selecti
Slide 40: Focusing on driving a very deep selection
Customers Selection Experience Value …focusing on driving a very deep selection Evolution of total number of Restaurants & Restaurants Grocery & Retail Local shops 17k+ regional favourite 44% of GMV(3) restaurants(2) ~64.4k 30% 34k+ boutique 17% of CAGR(1) ~9.3k restaurants(2) GMV(3) Product & servi
Slide 41: Large untapped number of potential partners
Customers Selection Experience Value Large untapped number of potential partners to drive further GMV growth Egypt Iraq (Otlob rebranded to talabat in 2020) (launched in 2021) Share of GMV coming from new partners Share of GMV coming from new partners Product & service offering acquired in 2023(1) a
Slide 42: Best-in-class customer experience
Customers Selection Experience Value Best-in-class customer experience Increasing coverage area between …while improving average delivery Decreasing customer contact rate given pickup and customer location…(1,2) time and % of orders on time improvement in customer experience(4) Rebased to 100 % of o
Slide 43: Leading partners fund significant savings for customers
Customers Selection Experience Value Leading partners fund significant savings for our customers Evolution of total customer savings funded by partners ($M) ~$380M 4.6% 5.7% 5.9% Total partner funded savings ~38% (LTM)(2) CAGR(1) 180 208 ~1/3 Product & service offering 128 H1 2023 H2 2023 H1 2024 of
Slide 44: Given our value proposition, customers prefer talabat
Customers Selection Experience Value Given our leading value proposition, customers prefer talabat talabat has a leading consumer funnel #1 NPS(6) 2/3 performance 20 years of talabat users will serving talabat NPS is ~20% not switch to other Food delivery Grocery delivery customers in higher vs. reg
Slide 45: Partners
PARTNERS 45
Slide 46: Large, diverse partner base of >64k Active partners
Partners We have built a large, diverse partner base of >64k Active partners, achieving a 4.4x growth since 2019(1) Restaurants Grocery & Retail 44% 17% of GMV(3) of GMV(3) 17k+ regional favourite 34k+ boutique restaurants(2) restaurants(2) Product & service offering 15% 24% of GMV(3) of GMV(3) 4k+
Slide 47: What do our partners want
Partners What do our partners want Sales Growth Customer Channel Enablement Experience What matters? What matters? What matters? Visibility Reach Incremental demand Maximise profit pool Brand perception Consumer service Product & service offering Engaged Higher Effective Incremental Reliable Satisfi
Slide 48: Access to a deep pool of loyal customers
Partners Sales channel Growth Experience We provide our partners with access to a deep pool of loyal customers Access to the Deep Boosting largest user base in the region footprint and coverage online brand visibility Access to 8 attractive countries Best-in-class AdTech product >6M 6.5x >4.9x Total
Slide 49: Most comprehensive advertising tools for partners
Partners Sales channel Growth Experience We provide our partners with the most comprehensive advertising tools… ✓ Sponsored listing Increasing adoption of AdTech products Premium 27% 4.9x ✓ Rank high on listing page via positioning boosted visibility Adoption(1) ROAS # AdTech products per partner ✓
Slide 50: AdTech generating growth for partners and talabat
Partners Sales channel Growth Experience …generating tangible growth for partners and boosting talabat’s profitability AdTech usage boosts orders… …yielding profitable growth for talabat… …with significant upside potential Orders generated through AdTech products (M)(1) Annual talabat AdTech revenue
Slide 51: Case study: AdTech supporting a partner's growth
Partners Sales channel Growth Experience Case study: How our AdTech products successfully supported one of our partners in their growth journey Popular local restaurant located in UAE, serving a selection of Historical GMV evolution grills, sandwiches, shawarma, … Monthly GMV(1) evolution of selecte
Slide 52: Enabling partners' next leg of profitable growth
Partners Sales channel Growth Experience We are enabling our partners on their next leg of profitable growth Diverse toolbelt of growth levers for our partners… …leading to tangible topline impacts Monthly GMV evolution of selected partner ($M) Analytics and ✓ Optimise city expansion plan +9x data d
Slide 53: Enabling partners to offer the best customer experience
Partners Sales channel Growth Experience We enable our partners to offer the best customer experience Best experience for our customers Superior analytics tool Insights-driven performance optimisation 20% Higher NPS score than other platforms(1) Fast and reliable Product & service offering delivery
Slide 54: Riders
RIDERS 54
Slide 55: Dense and diverse network of riders
Riders We have built a dense and diverse network of riders Scaling the fleet size together with our ...while increasing average order growth…(1) Deep international tenure(3) ~115k pool of riders All countries, number of weeks 64% 2019-24 CAGR ~87k ~60% expats 61 ~62k Product & service offering 33 Ri
Slide 56: What do riders care about
Riders What do riders care about Earnings Safety Respect What matters? What matters? What matters? Reliable In-app Heat Customer Partner Professional Prompt and Order Payment appreciation appreciation environment consistent pay availability transparency equipment safety score protection Product & se
Slide 57: Improving efficiency to drive higher earnings for riders
Riders Earnings Safety Respect Improving efficiency to drive higher earnings for riders Successful initiatives to improve efficiency… …leading to high rider earnings… …with a superior payment process Precise fleet size forecasts Rated #1(2) for fast and 1.2x 1 reliable payment cycles Efficient order
Slide 58: Highest safety and wellbeing standards for riders
Riders Earnings Safety Respect We offer riders the highest safety and wellbeing standards Rider safety & protection Best-in-class training programmes Yearly summer initiatives Product & service offering Comprehensive suite of Top-tier safety kit rider training programmes 27k Windshields installed Pr
Slide 59: Rider model combining compliance with appreciation
Riders Flexibility Safety Respect A rider model that combines high compliance with strong rider appreciation 3PL rider model complies with the high standards… …whilst treating riders with the respect they deserve ✓ Initiatives to Customer boost tipping appreciation ✓ Social media campaigns Safety ce
Slide 60: Grocery & Retail
Grocery & Retail GROCERY & RETAIL 60
Slide 61: Expanding from Food into Grocery & Retail
Grocery & Retail Expanding from Food into Grocery & Retail increases frequency, boosts spending and drives platform growth Multi-vertical Food Food + Only(1) Grocery & Retail(2,3) + Product & service offering Frequency Orders/month 3.8 3.4x 13.0 Monthly Spend $/month $54 4.1x $221 Source: Company in
Slide 62: MENA a prime region for Grocery & Retail
Grocery & Retail Strong fundamentals, a large market and ample room for growth make MENA a prime region for Grocery & Retail Grocery & Retail is set for rapid growth ...creating a large market with huge potential for on a strong foundation… expansion Grocery & Retail Large households, bulk orders Co
Slide 63: Focus on selection, CX and value in Grocery & Retail
Grocery & Retail Following our Food model, we focus on selection, CX and value, securing category leadership and future growth Selection Experience Value Connect customers with the right Delivering a seamless digital Providing the same prices as partners to ensure they find what experience with top-
Slide 64: Two complementary business models: tMarts and Local shops
Grocery & Retail Growing through two complementary business models tailored to different shopping missions Footprint UAE KUWAIT QATAR BAHRAIN OMAN JORDAN EGYPT IRAQ tMarts Local shops • talabat owns and operates delivery-only stores • Marketplace that connects customers to favourite • tMart store mo
Slide 65: Solving online Grocery & Retail with technology
Grocery & Retail Online Grocery & Retail is challenging, but we are solving it with technology at every step of the journey Discoverability Basket building Order fulfilment Order delivery Pain point Pain point Pain point Pain point Partners customer reach Reliability: Out of stock Vehicle requiremen
Slide 66: Tech-first approach to out-of-stock issue
Grocery & Retail Order fulfilment Basket building Discoverability A tech-first approach has made great strides in tackling the out-of-stock issue in online groceries... Case Study What we did Inventory management Real-time updates, automated 45% accuracy and demand planning Reduction in orders out o
Slide 67: Seamless basket-building with technology-driven solutions
Grocery & Retail Order fulfilment Basket building Discoverability …enabling seamless basket-building for customers with technology-driven solutions Product & service offering Search Variants Weighables Tailored Deals Selection Selection Experience Value Multi-vertical item discovery Unlocking the po
Slide 68: Retail media solutions to enhance discoverability
Grocery & Retail Order fulfilment Basket building Discoverability Empowering CPGs and partners with retail media solutions to enhance discoverability Enabling CPGs to… Enabling Grocery & Retail partners to… …reach customers better through proprietary integrated …connect with customers, through strat
Slide 69: CPG confectionery brand A/B test
Grocery & Retail Order fulfilment Basket building Discoverability Leading CPG confectionery brand drove incremental purchases through A/B Testing a feature Case Study Order penetration(1) of best performing SKU 1.2% 2nd test 50% Quantity of items 1st test sold vs. Control 2x Baseline reset Increase
Slide 70: Local brand gaining category share in peanut butter
Grocery & Retail Order fulfilment Basket building Discoverability Enabling a local brand in gaining category share in peanut butter Case Study Incremental sales and category position improvement from ad spend Category share (%) 5% Incremental sales 6x Organic sales 4x Sales 4% Category 4% share 3% 3
Slide 71: Strong financial track record in Grocery & Retail
Grocery & Retail Strong financial track record with rapid growth and a clear strategy to further accelerate growth Our focus going forward tMarts Local shops • Doubling down on selection Increase in partners, product categories and Strong assortment growth GMV GMV 76% CAGR 64% CAGR • Boosting custom
Slide 72: InstaShop acquisition overview
Grocery & Retail - loved MENA online grocery marketplace InstaShop overview Key financials Expected synergies Founded in Dubai in 2015, Expanded partner network operating in UAE and Egypt through cross listing ~$487M GMV FY23 Product & service offering ~8,800 partners across 20 Optimised operations
Slide 73: FinTech
FINTECH 73
Slide 74: PostPaid delivers 14% frequency uplift
FinTech PostPaid delivers 14% frequency uplift by simplifying payments Launched and PostPaid offered in the UAE Substantial capacity for further growth and penetration Allowing customers to order, pay for it later (within 30 days) for no extra cost 50%+ 14% 2.2% Addressable Profitable product(1) Fre
Slide 75: Co-branded credit cards drive loyalty
FinTech Our co-branded credit cards drive higher loyalty with our customers • Co-branded card with several partner-funded benefits • Program was launched in the UAE • Fostering customer retention with attractive offers: No annual Unlimited free Redeem talabat credit fee, ever delivery(1) for talabat
Slide 76: Loyalty Programmes
LOYALTY PROGRAMMES 76
Slide 77: talabat pro premium subscription
Loyalty Programmes talabat pro - our premium subscription fostering frequency and retention Subscription service launched across six countries, offering unlimited free delivery & exclusive deals Unlimited free delivery on select Food partners(1) Free 6/8 Unlimited free delivery on tMart(1) delivery
Slide 78: talabat pro drives value, retention and frequency
Loyalty Programmes talabat pro drives great value for customers, unlocking higher retention and step-changing frequency …with room to further invest in talabat pro Customer retention engine… …increasing customer engagement… value proposition Customer retention uplift from joining talabat pro(1) Cust
Slide 79: Rewards programme increasing loyalty
Loyalty Programmes Rewards programme allowing customers to earn points, increasing loyalty in the talabat platform Intuitive and engaging rewards programme… …increasingly adopted by our customers… …resulting in higher order frequency Rewards adoption rate Average order frequency per customer(1) 16%
Slide 80: Technology
Technology 80
Slide 81: Tech stack supporting our journey
Our Tech stack has supported our journey in becoming the leading on-demand delivery platform in MENA 20 years ago, we started as Today, we are a leading tech company a marketplace website with the largest platform in the region 2024 20 years ago vs. Technology Today 2004 81
Slide 82: Systems optimised for high throughput at minimum latency
The real-time challenge: our systems are optimised for high throughput at minimum latency (1) >115K Active riders <30min for hot food delivery 6.5x average order frequency Back to Ramadan school Near-real Technology Millions of orders a day ~99.95% system reliability time transmission from customer
Slide 83: Technology ecosystem serving consumers, partners and riders
Our technology ecosystem serves consumers, partners and riders better everyday POS integrations Advertising solutions Partner experience Performance insights Customer Online payments experience Targeted deals, discounts, promotions Delivery Technology Personalisation and discovery experience Trackin
Slide 84: Food and grocery ordering powered by personalisation
Best-in-class food and grocery ordering experience, powered by personalisation Personalisation Customers Multi-vertical experiences Seamless transition across verticals Tailored recommendations Machine learning models power personalised recommendations, upselling and cross-selling Targeted offers Cu
Slide 85: Advanced routing algorithms for riders
Riders benefit from the most advanced routing algorithms at scale Delivery optimisation Delivery Safety & physical Rider optimisation well-being wallet Optimised dispatch Advanced algorithms for Telematics in-app User friendly and Our rider technology ensures efficient delivery better routing optimi
Slide 86: Targeted ad delivery for partners
Partners gain access to a large and specific set of “eyeballs” for effective and targeted ad delivery Advertising tech Efficient ads and Partner targeting self-serve AdTech platform Our sophisticated advertising platform, built Improved management Reports & campaign on our data stack, enables partne
Slide 87: Data engine improving with scale
Sophisticated, difficult-to-replicate data engine that improves with scale at the heart of talabat’s technology Data Models Data network effects: collection building our competitive advantage >6M Active customers Superior customer experience >64K Active partners 155+ Improved partner Cuisines / Cate
Slide 88: Tech that scales with our growth
Tech that scales with our growth… One unified technology stack, Data is stored encrypted and capable of processing millions Technology Data undergoes regular audits by of transactions a day across stack security third-party entities and Delivery verticals and categories Hero’s security framework Hig
Slide 89: Clear technology roadmap for future growth
…complemented by a clear roadmap for future growth 1 2 3 4 5 Personalisation Grocery & Retail Advancing AdTech Expanding our talabat FinTech to drive & marketing shopping and capabilities to pro subscriber base affordability on the automation monetisation improve partner ROI talabat platform ▪ AI dr
Slide 90: Largest tech hub in the region
We are the largest tech hub in the region with a proven ability to attract the best tech talent Technology Source: Company information as of July 2024 90
Slide 91: Management & ESG
Management & ESG 91
Slide 92: Experienced management team
Passionate and highly experienced management team with proven execution track record TOMASO RODRIGUEZ CEO Finance Operations Business Strategy & HR Product Grocery & Retail Management & ESG KHALED ALFAKESH PEDRAM ASSADI JEREMY DOUTTE STEFANO VECCHIO YI-WEI ANG WASSIM MAKAREM CFO COO CBO VP Strategy
Slide 93: High performance culture and engaged workforce
Building a high performance culture through engaged workforce and growing talent density Consistently achieving positive eNPS Growing talent density High employees satisfaction and willingness to recommend talabat as an employer of choice 95% Of high performers retained Overall eNPS(1) (Jan-Jul 2024
Slide 94: Celebrating our global talent
Celebrating our global talent… ...and nurturing their growth and career development ~90 Distinct nationalities represented 36% >50% 1 in 3 Leadership programmes Of senior leadership roles(1) Of managers have gone High performing women in ✓ "Elevate” in partnership with filled with internal talent 20
Slide 95: Committed to positively impacting the community
talabat is committed to positively impacting the community Sustainability strategic framework and plan What we are most proud of Our sustainability agenda is driven by our contributions to the below 3 UN SDGs Building our TECH4GOOD Platform Contributing to Fostering decent Reducing our ending hunger
Slide 96: Active member of our communities
We are an active member of our communities – from local through to regional level engagement LOCAL REGIONAL Management & ESG Annual “Summer Together” initiative in UAE provides rest areas and Local Government’s core mission is to enable, and empower air-conditioned buses to protect rider safety busi
Slide 97: Long-Term Value Creation
Long-Term Value Creation 97
Slide 98: Multiple levers for sustained growth and profitability
Multiple levers for sustained growth and profitability gains A B C D Powerful macro Deeper category Turbo-charging Deeper supply tailwinds penetration customer loyalty partnerships ⚫ Outsized population ⚫ New verticals and ⚫ Frequency ⚫ AdTech solutions growth product innovation enhancing initiative
Slide 99: Powerful macro tailwinds drive long-term growth
A Powerful macro tailwinds drive long-term growth in addressable customers …combined with attractive urbanisation …and young demographics will drive Strong population growth… rates… outsized growth in addressable customers Population per annum growth Urbanisation rate by country(3) Average age distr
Slide 100: Upside from deeper category penetration
B Huge upside potential remaining from deeper category penetration …with identified levers to increase Significant headroom remaining Continue acquiring new customers… frequency Total addressable population(1) New customers acquired Continuing improving choice, customer % YoY experience and value 71
Slide 101: Non-GCC countries remain a massive untapped opportunity
B Non-GCC countries remain a massive untapped opportunity Non-GCC countries pose a massive opportunity… …with further upside existing in core GCC regions Currently only present Egypt and Iraq are Present in Kuwait for two in ~19% and ~42% of UAE growing faster than emerging countries with decades an
Slide 102: Headroom from penetrating adjacent verticals
B Significant headroom to grow by penetrating adjacent verticals Huge upside potential from penetrating adjacent verticals… …by scaling our offering across our countries Expanding further Grocery & Retail penetration… 22% 1% 1% Grocery & Retail customer adoption(5) Customer adoption Customer adoptio
Slide 103: Grow PostPaid to drive engagement and retention
C Grow our PostPaid product to drive further engagement and retention PostPaid Smoothens the pay week cyclicality Customer acquisition and engagement engine Significant headroom to grow Weekly PostPaid GMV ($M) PostPaid penetration(2) 14% 50%+ (3) 2.2% Long-term value creation Penetration as GMV sha
Slide 104: Continue scaling talabat pro
C Continue scaling talabat pro to turbo-charge our customer loyalty and fuel partners’ growth Loyalty and engagement engine Partners highly value our talabat pro proposition Significant headroom to further grow Partner funded incentives for talabat pro users ($M)(4) talabat pro penetration 136% 25%
Slide 105: Deepening supply partnerships for restaurant partners
D Deepening supply partnerships by boosting returns for restaurant partners and reducing their costs… Highly profitable AdTech product… …reducing acquisition costs for restaurant partners… …with ample headroom to continue growing Annual AdTech revenue ($M)(1,3) Customer acquisition cost(2,3) for par
Slide 106: Full suite of innovative ad products
D …supported by a full suite of innovative ad products Automation Targeting Algorithmic efficiency Increasing share of self-service tools Increasing spend on targeting products Improving algorithm drives higher conversion Penetration of self-service ads portal(1) Targeted ads penetration(2) (%) Clic
Slide 107: Online penetration and marketing spend tailwinds for CPG
D Accelerating online penetration and increased marketing spend create tailwinds for strong CPG growth talabat’s Grocery & Retail categories will benefit from ...while marketing expenses rise, with a growing focus on accelerating online retail growth... online channels Retail ecommerce sales penetra
Slide 108: Retail media solutions support CPGs
D Our retail media solutions support CPGs to grow & achieve their goals, with lots of potential to further improve margins CPG(1) challenges solutions Opportunity size Advertising investment ratio of CPG products to sales (2023) Reach customers and Direct access to high intent stand out among produc
Slide 109: Financials
Financials 109
Slide 110: Attractive combination of scale, category leadership, growth and profitability
Attractive combination of scale, category leadership, growth and profitability Largest Strong Growth Rapid GMV ~51% Platform ~$6.1Bn Growth GMV CAGR in the MENA at Scale (2015-23) Region (1) GMV in 2023 Attractive Loyal ~4x Increasing Diverse +4.4x Customer GMV per average Number of Fundamentals coh
Slide 111: Strong GMV growth
Strong GMV growth fueled by strong demand, order frequency and expanding multi-vertical customer base… GMV(1,2) ($M) • talabat achieved 24% GMV CAGR over CAGR YoY 2021-2023 period mainly due to stronger order volumes across all regions • In H1 2024, we continued to experience strong consumer demand,
Slide 112: Strong revenue growth
…translating into strong revenue growth Total management reporting revenue ($M) • Total revenue increased by 31% YoY in H1 % of 2024, exceeding GMV growth mainly due to 34.1% 37.0% 37.1%(5) 39.4% GMV further upside from non-commission YoY YoY revenues, delivery & service fees, and our tMart business
Slide 113: Gross profit margin expansion
Gross profit margin expansion due to better unit economics & cost optimisation Gross profit ($M) • talabat successfully increased gross profit margin by 1.0% to 12.4% In H1 2024, mainly % of 10.2% 11.4% 11.4%(2) 12.4% due to better unit economics & cost GMV optimisation % of 30.0% 30.8% 30.9% 31.4%
Slide 114: Growth trajectory with continuous margin improvement
Stellar growth trajectory with continuous improvement of margins Adj. EBITDA(1) ($M) • Adjusted EBITDA increased by 70% YoY to % of 4.2% 5.3% 4.8%(3) 6.7% $231M in H1 2024 mainly due to the GMV following factors: % of 12.3% 14.3% 13.1% 17.0% – Strong topline growth and gross profit revenue(2) YoY Yo
Slide 115: High operating leverage
High operating leverage with well-defined levers for future earnings growth Gross profit to Adj. EBITDA(1) bridge ($M) • High operating leverage support further ($M) 2022 2023 2022 2023 H1 2023 H1 2024 H1 2023(3) H1 2024 cost efficiencies and Adj. EBITDA margin % of GMV % of GMV % of GMV % of GMV ex
Slide 116: Limited exposure to foreign exchange risk
Limited exposure to foreign exchange risk as most of our functional currencies are dollar pegged Management reporting revenue breakdown • Total revenue and Adjusted EBITDA is 2023 In 2023, Egypt represented predominantly generated from countries ~6% of total revenue and with a currency peg policy wh
Slide 117: Net income almost doubling in H1 2024
Impressive earnings trajectory with net income almost doubling in H1 2024 Adjusted Net income(1) ($M) • Adjusted net income increased by 91% YoY to $173M (5.0% of GMV) in H1 2024, % of 3.0% 4.2% 3.2%(4) 5.0% outpacing revenue and Adjusted EBITDA(2) GMV growth rate mainly due to increased cost % of 8
Slide 118: Outstanding free cash flow profile
Outstanding free cash flow profile Free Cash Flow(1) • Free cash flow increased by 64% YoY to ($M) 2022 2023 H1 2023 H1 2024 $226M (98% cash conversion) in H1 2024, partially driven by talabat’s low capex Adj. EBITDA(2) 217 321 136 231 requirements and positive working capital effects (-) Capex (A)
Slide 119: Ample balance sheet capacity
Ample balance sheet capacity due to current net cash position and no financial debt at IPO Capital structure overview ($M) H1 2024 IFRS 16 lease liabilities 86 Shareholder loan to be capitalised Shareholder loan (Net position) pre-IPO 122 Cash and cash equivalents (268) Financials Net debt / (Net ca
Slide 120: Financial guidance
Financial guidance(1) Outlook Comments 2024E forecast 2025E forecast Medium-term 22-23% 17-18% • Strong GMV growth at double-digit rates, despite the shift GMV growth 14-15% in geographical and product mix attributing the year- (YoY 2023-24) (YoY 2024-25) over-year deceleration 28-30% 18-20% • Reven
Slide 121: Financial guidance (cont'd)
Financial guidance(1) (cont’d) 2024E, 2025E and medium-term outlook Tax • Effective corporate income tax rate on Company level converging to 11% over the medium-term (taking into account the implementation of corporate income tax in the UAE) • Company does not expect to issue financial debt in the n
Slide 122: Appendix
Appendix 122
Slide 123: Financial model overview
Financial model overview Metrics Financial Model GMV(1) # of Orders Average Order Value # of Orders Delivery and Service Fees / Order Revenue from Subscription Fees Customers Own Grocery & Retail Revenue Vouchers GMV % Commission Rate Revenue from Partners Non-commission Based Revenue (Advertising &
Slide 124: Overview of marketing expense
Overview of marketing expense customer acquisition & retention cost Marketing Expense (IFRS) Customer Acquisition & Retention Cost 2023 ($M) 2023 ($M) 1.5% % of GMV 19 132 89 49 40 73 40 Restaurant Customer Acquisition Other Marketing Total Marketing Customer Acquisition & Vouchers Customer Acqusiti
Slide 125: Adj. EBITDA bottom-up build-up
Adj. EBITDA bottom-up build-up Net Income to Adj. EBITDA(1) Bridge 2023 ($M) 321 (44) (2) (24) (25) (8) (7) 212 Financials Adj. EBITDA D&A Other non Net interest Foreign Income taxes Other income & Net income income tax result currency result expenses Source: Company information Note: 1. Adjusted EB
Slide 126: Glossary
Glossary Term Definition # Number of Active customers / users Individuals who have placed at least one successful order through the talabat platform within the full calendar month specified Active partners partners who have fulfilled at least one successful order via the talabat platform within the
Slide 127: Thank you!
Thank you! 127