Delivery Hero SE · XETR:DHER
Delivery Hero — Q3 2020 Earnings Presentation
32 slides from Delivery Hero's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Trading Update
Q3 2020 Trading Update October 28th, 2020
Slide 2: Our Clear Vision
Our Clear Vision Always delivering an amazing experience Fast and easy to your door 2 Delivery Hero SE This document is strictly confidential and may not be copied, used, made available or be disclosed to third parties without prior written permission.
Slide 3: Delivering On Our Promise
Delivering On Our Promise Growth as Build Invest for No. 1 Tech & Product Profitability Leadership Priority Leadership Drive profitability through >40% in short/mid-term Further strengthen our Invest in innovation to scale and automation (2017 IPO target) position across the most build a third gener
Slide 4: Business Update, Financial Update, Case Study, Outlook
Business Update Financial Update Case Study Outlook 4
Slide 5: Leading Position in 90% of Countries
Leading Position in 90%1 of Countries Global Operational Footprint: 49 Countries Footprint Update Woowa Europe MENA South Korea deal approval expected in Q4 2020 Greece Lebanon Glovo Austria Bosnia & Bahrain Asset integration in Argentina, Panama and the Herzegovina Hungary Dominican Republic – enti
Slide 6: Q3 2020 Key Highlights
Q3 2020 Key Highlights Our own-delivery business is now providing a positive contribution margin as a percentage of GMV in MENA, Americas, Europe and Asia Orders doubling YoY and record sequential order growth of 29% in Q3 2020 (+81m orders QoQ) foodpanda operations launched in Japan with encouragin
Slide 7: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights 362 281 362m 239 216 144 181 +100% 125 95 108 YoY 53 58 63 74 80 86 ORDERS 2017 2018 2019 2020 3.4 €3.4bn 2.8 2.0 2.3 2.4 +70% +81% 1.3 1.5 1.7 YoY YoY 1.1 0.7 0.7 0.8 0.9 1.0 1.0 GROSS MERCHANDISE Reported Constant VALUE Currency Currency 2017 2018 2019 2020 776 €776m 6
Slide 8: Q3 2020 M&A Update
Q3 2020 M&A Update Delivery Hero has acquired Glovo’s full operations in LatAm and all the outstanding shares of InstaShop in MENA Glovo InstaShop Acquired in August 20202, InstaShop is a leading online grocery Acquired Glovo’s operations in LatAm in September 20201 marketplace in MENA, operating in
Slide 9: Partnership with Mastercard in MENA
Partnership with Mastercard in MENA A partnership to fully digitize the payment chain within the Delivery Hero ecosystem across MENA • Available for millions of consumers active in MENA New Payment Solutions for • New contactless payment options: pay Customers on delivery or a digital wallet solutio
Slide 10: Business Update, Financial Update, Case Study, Outlook
Business Update Financial Update Case Study Outlook 10
Slide 11: Q3 2020 Group
Q3 2020 Group Total Segment Orders (m) GMV (€m) Revenues1 (€m) YoY growth rates in red are constant currency and in black are reported currency +81% +70% 3,356 Doubling orders with a YoY growth of 100% - Q3 2020 is the 7th consecutive quarter with YoY revenue growth of around 100% +110%2 Share of ow
Slide 12: COVID-19 Update
COVID-19 Update Orders 200 180 Americas Returning to structural order growth as 160 Asia restrictions end in most markets 140 Group Europe Oct 25 All meaningful COVID-19 restrictions in MENA 120 MENA +43% lifted by end of August Indexed Orders 100 80 Cohorts acquired post March 2020 show behavior at
Slide 13: Q3 2020 Asia Platform Business
Q3 2020 Asia Platform Business Segment Orders (m) GMV (€m) Revenues (€m) YoY growth rates in red are constant currency and in black are reported currency +125% +117% Continued very strong order growth of +178% 1,422 YoY, driven by early stage countries in APAC Own-delivery at 78% of orders in Q3 202
Slide 14: Q3 2020 MENA Platform Business
Q3 2020 MENA Platform Business Segment Orders (m) GMV (€m) Revenues (€m) YoY growth rates in red are constant currency and in black are reported currency +44% +30% 1,206 Healthy recovery of order growth to pre-COVID level in MENA with +40% YoY (Q1 2020: 31%) 928 Own-delivery at 41% of orders in Q3 2
Slide 15: Q3 2020 Europe Platform Business
Q3 2020 Europe Platform Business Segment Orders (m) GMV (€m) Revenues (€m) YoY growth rates in red are constant currency and in black are reported currency +67% +65% 426 Strongest order growth (+55% YoY) since IPO, and accelerating sequentially Own-delivery at 26% of orders in Q3 2020 (Q3 2019: 15%)
Slide 16: Q3 2020 Americas Platform Business
Q3 2020 Americas Platform Business Segment Orders (m) GMV (€m) Revenues (€m) YoY growth rates in red are constant currency and in black are reported currency +149%1 +130% 301 Second consecutive quarter with order growth above 100% YoY (Q3 2020: +112% YoY) Own-delivery at 76% of orders in Q3 2020 (Q3
Slide 17: Q3 2020 Integrated Verticals
Q3 2020 Integrated Verticals Segment Orders (m) GMV (€m) Revenues (€m) Integrated Verticals capture orders where Delivery Hero acts as a principal (Dmarts and DH Kitchens1) Continued expansion of the segment with order growth of +64% QoQ 54 51 Added 106 Dmarts in Q3 2020 (254 Dmarts in 19 countries
Slide 18: Business Update, Financial Update, Case Study, Outlook
Business Update Financial Update Case Study Outlook 18
Slide 19: Positive Contribution Margin in Every Region
Positive Contribution Margin in Every Region Contribution Margin1 (Before Voucher Costs2) as a % of GMV 10% • MENA with positive contribution margin since many quarters 5% • Strong improvement in Americas 0% due to significant delivery CPO decline on the back of optimized -5% fleet utilization and o
Slide 20: Even After Voucher Costs, Three of Four Own-Delivery Segments Positive
Even After Voucher Costs, Three of Four Own-Delivery Segments with Positive Contribution Margin Contribution Margin1 (After Voucher Costs2) as a % of GMV 10% 5% • After a peak in 2019 (H1 2019: 12.2%, H2 2019: 17.7%), vouchers 0% as % of segment revenue was already down in H1 2020 to 15.7%. -5% The
Slide 21: Business Update, Financial Update, Case Study, Outlook
Business Update Financial Update Case Study Outlook 21
Slide 22: Updated 2020E Guidance
Updated 2020E Guidance 2020E Guidance Total Segment Revenues €2.7bn to €2.8bn Previously: €2.6bn to €2.8bn Adjusted EBITDA margin -14% to -18% Plus additional investments of up to €120m Previously: Plus additional investments of up to €150m • Flexibility of additional investments of up to €120m (inc
Slide 23: Appendix
DB Delivery Hero Appendix
Slide 24: Delivery Hero KPIs (1/2)
Delivery Hero KPIs (1/2) 2019 2020 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Delivery Hero Group Orders 124.5 144.2 268.8 181.3 216.0 666.1 238.5 280.6 519.1 361.7 % YoY Growth 55.2% 67.0% 61.4% 91.8% 99.4% 80.3% 91.5% 94.5% 93.1% 99.5% % OD Orders 25.0% 29.9% 27.6% 40.4% 44.5% 36.5% 51.5% 62.1% 57.3% 62.
Slide 25: Delivery Hero KPIs (2/2)
Delivery Hero KPIs (2/2) 2019 2020 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Europe Orders 19.2 20.8 39.9 20.7 24.4 85.0 25.4 30.6 56.0 32.0 % YoY Growth 38.5% 42.1% 40.4% 44.5% 39.5% 41.1% 32.9% 47.4% 40.4% 54.8% % OD Orders 10.2% 13.1% 11.7% 14.8% 15.6% 13.6% 19.0% 26.3% 23.0% 25.8% GMV 232.0 248.6 480.
Slide 26: Recap and Update on Woowa Partnership
Recap and Update on Woowa Partnership - US$4.0bn (or €3.6bn)1 for 100% of Woowa on a cash and debt free basis Valuation - This equates to c. 0.6x2019E GMV - Stock: up to €1.9bn paid by issuing up to 40.1m shares from existing authorizations Stock and Cash - Up to 31.2m shares delivered at closing an
Slide 27: Adjustments
Adjustments Definition • The reported pro forma figures have been retrospectively adjusted for divestments of German operations – Figures have not been adjusted for other acquisitions or divestments that can be found in the table below • The strategic partnership with Woowa is not reflected in the f
Slide 28: COVID-19-related Measures (1/2)
COVID-19-related Measures (1/2) Central approach tailored to local markets Government & Local Communities Customers ü Offering free phone ordering for elderly to give them access to safe food ü Introducing features to encourage ordering after re-opening of restaurants delivery (i.e. pickup up, pre-o
Slide 29: COVID-19-related Measures (2/2)
COVID-19-related Measures (2/2) Central approach tailored to local markets Riders Restaurants and Vendors ü Partnering with doctors to create interactive safety instructions ü Waiving sign-up fees to help restaurants and vendors onboarding ü Continuing to provide sanitizer, masks and safety material
Slide 30: Definitions
Definitions ● Gross Merchandise Value (GMV) is the total value paid by customers (including VAT, delivery fees, service fees and other subsidies) ● Total Segment Revenue is defined as revenue before subtraction of voucher expenses ● Constant currency provides an indication of the business performanc
Slide 31: Investor Relations Contact
Investor Relations Contact Contact T: +49 3054 4459 105 70 Oranienburger Straße 10117 Berlin Germany ir@deliveryhero.com https://ir.deliveryhero.com 3131 Delivery Hero SE This document is strictly confidential and may not be copied, used, made available or be disclosed to third parties without prior
Slide 32: 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