Delivery Hero Se · XETR:DHER
Delivery Hero — Investor Presentation (June 2017)
53 slides from Delivery Hero's investor presentation, Jun 6, 2017
Slide 1: Delivery Hero Company Presentation
Delivery Hero Company Presentation The #1 GLOBAL LEADER in Online Food Ordering and Delivery 6 June 2017 1
Slide 2: Important Notice
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
Slide 3: Our Clear Vision
Our Clear Vision CREATE AN AMAZING TAKEAWAY EXPERIENCE Highlights: Introduction 3
Slide 4: We Are an Online Food Ordering and Delivery Marketplace
We Are an Online Food Ordering and Delivery Marketplace USER1 RESTAURANT Receive Cook Order 3 4 2 Customer Order 1 Search Received (TBU) Deliver2 5 6 Eat Customer Order Received (TBU) RESTAURANT DRIVER Source: Company information Notes: 1. Number of actives in 2016 was c. 20m globally 2. Delivery He
Slide 5: Powerful Network Effects Drive Customer Loyalty and Platform Stickiness
Powerful Network Effects Drive Customer Loyalty and Platform Stickiness More Restaurants to Join and Higher Value for Higher Leverage Restaurants to Give Service Saved Info and Better Takeaway More More Data Personalised Experience Orders Experience Higher Delivery Lower Prices & Efficiency Faster D
Slide 6: Delivery Hero Highlights
DELIVERY HERO HIGHLIGHTS 1 Large Global Market Opportunity 2 Global Leader 3 Local Know How + Global Scale and Execution 4 At the Forefront of Innovation and Technology 5 Proven Business Model 6 Attractive Scale, Growth and Profitability Potential 7 Multiple Drivers for Long-term Growth Highlights:
Slide 7: Large Global Market Opportunity
1 Large Global Market Opportunity 7
Slide 8: Unlocking the Large Food Market
Unlocking the Large Food Market SECULAR MARKET TAILWINDS Total Food Market €7.5tn4 Online & Mobile Foodservice Market in Delivery Hero’s Engagement Countries €563bn3,5 On-demand & Takeaway Market in Delivery Hero’s Last-mile Logistics Countries €72bn2,5 Life-style, Urbanization & Convenience Deliver
Slide 9: Global Leader
2 Global Leader 9
Slide 10: We Are the Global Leader in Online Food Delivery
We Are the Global Leader in Online Food Delivery with Larger Reach, More Scale and Faster Growth # of Countries 421 12 1 9 #1 Positions 351,2 12 1 5 Leading Player # of Orders c. 197m3 c. 136m c. 101m c. 49m # of Restaurants >150k4 c. 69k c. 50k c. 29k Revenue Growth5 +71%6 +52% +36% +45% Total Addr
Slide 11: Global Leader with #1 Positions in Countries
Global Leader with #1 Positions in 35 Countries1,2 Bosnia & Herzegovina Sweden Germany Turkey COMPETITIVE MARKET PLAYER Greece Hungary UAE Kuwait India #1 MARKET LEADER Finland Romania Bahrain Saudi Arabia Brazil Switzerland Czech Rep. Croatia Egypt Qatar Austria Serbia Montenegro Oman Jordan Bulgar
Slide 12: Local Know How + Global Scale and Execution
3 Local Know How + Global Scale and Execution 12
Slide 13: Local Entrepreneurial Leadership Team Supported by Highly Experienced Central Management
Local Entrepreneurial Leadership Team Supported by Highly Experienced Central Management Ariel Burschtin (Co-founder & CEO) Alvaro Garcia (Co-founder, CMO & CPO) Ruben Sosenke (CTO) Abdulhamid Al-Omar (CEO & early executive) Rodrigo Sampaio (MD & Co-CEO) Eduardo Goes (MD & Co-CEO) Knowledge Platform
Slide 14: Centrally Managed Operations and Logistics Know How
Centrally Managed Operations and Logistics Know How Delivery Restaurant Sales & Customer (incl. Last Onboarding Marketing Care Mile) 1 2 3 4 5 6 7 8 Content Payment & Customer Product Production Processing Retention 9 Proprietary Technology Highlights: Local Know How + Global Scale and Execution 14
Slide 15: Proven Effects of Central Execution
Proven Effects of Central Execution TARGET (Baedaltong) 2011 2014 2014 2012 2014 2015 2015 2015 SUCCESS METRIC Growth Growth Growth Growth Growth Growth Growth EBITDA + + + + + EBITDA EBITDA EBITDA EBITDA EBITDA GMV (€m) GMV (€m) EBITDA (€m) GMV (€m) GMV (€m) GMV (€m) GMV (€m) GMV (€m) OUTCOME1 Befo
Slide 16: At the Forefront of Innovation and Technology
4 At the Forefront of Innovation and Technology 16
Slide 17: Creating an Amazing Takeaway Experience Through Innovation and Technology
Creating an Amazing Takeaway Experience Through Innovation and Technology I. Discovery and II. Restaurant Placing Order Integration IV. Manage Customer III. Delivery Relations (CRM) Experience Highlights: At the Forefront of Innovation and Technology 17
Slide 18: Proven Business Model
5 Proven Business Model 18
Slide 19: Steadily Growing Take-rates
Steadily Growing Take-rates REGIONAL TAKE-RATES1,2 % 17.2 % 15.5 % 15.4 % Europe 12.9 % 12.3 % Asia 10.2 % 10.2 % Americas 8.7 % MENA Q1 2015 Q1 2016 Q1 2017 Source: Company information Notes: 1. LFL adjustments including entities acquired in 2015 (Yemek Sepeti, Talabat and E-Food Group) for the per
Slide 20: Own Delivery Has Same Profit per Order as Marketplace
Own Delivery Has Same Profit per Order as Marketplace EVOLUTION OF PROFITABILITY FOR BOTH MODELS UNIT ECONOMICS PROFIT CONTRIBUTION1 (€ PER ORDER) (€ PER ORDER, AS OF Q1 2017) OWN OWN € MARKETPLACE DELIVERY DELIVERY 2.0 (High Basket (Low Basket Global2 Size Size Countries)3 Countries)4 1.5 Commissio
Slide 21: Attractive Scale, Growth and Profitability Potential
6 Attractive Scale, Growth and Profitability Potential 21
Slide 22: Cohort-driven Multiyear Revenue Growth
Cohort-driven Multiyear Revenue Growth Average Orders GMV Take-rate Revenue Basket Size Recurring high quality Take-rate 93% from expansion driven cohorts combined returning by market with strong new customers1 maturity and customer growth and increasing frequency own delivery Source: Company inform
Slide 23: Strong Order and GMV Growth
Strong Order and GMV Growth… ORDERS (#M) (AGGREGATED) GMV (€M) (AGGREGATED) LFL1,2 GROWTH LFL1,2 GROWTH +52% 2 ’15-’16 +51% 2 ’15-’16 197 2,618 27 65% 299 81% 130 1,731 LFL Adj.1,2 10 135 foodpanda 16 165 171 65% 2,324 62% Delivery Hero 103 1,430 2015 2016 2015 2016 Source: Company information Notes
Slide 24: Accelerate Revenue Growth Beyond Volume Growth
…Accelerate Revenue Growth Beyond Volume Growth REVENUE (€M)1 (AGGREGATED) SEGMENT REVENUE COMPOSITION 2016 LFL1,2 BY REGION (AGGR. LFL ADJ.2 DELIVERY HERO4 + FOODPANDA5) +71% GROWTH 347 ’15-’16 3 Americas 7 341 7% 50 128% (6%) Europe Asia 43% 26% (48%) (24%) 3 203 LFL Adj.2 <1 3 foodpanda 14 22 188
Slide 25: Margins Show Strong Operational Leverage With Y-o-Y Margin Improvement
Margins Show Strong Operational Leverage With Y-o-Y Margin Improvement 2015-16 ADJ. EBITDA5 (€M) 2015-16 ADJ. EBITDA BEFORE MARKETING EXPENSES4,5 (€M) MARGIN (93)% (34)% 29% AGGR.1,2,5 GROUP MARGIN DH ONLY2,5 (66)% (25)% 36% 39% Several Markets Already at 99 >50% EBITDA Margin6 113 2015 2016 60 Deli
Slide 26: Continuous Growth and Margin Improvement Across Our Segments
Continuous Growth and Margin Improvement Across Our Segments Europe MENA Asia Americas Group3 Units in M / €M Q1-16 Q1-17 Q1-16 Q1-17 Q1-16 Q1-17 Q1-16 Q1-17 Q1-16 Q1-17 Orders1 (Aggr.) 14 17 16 26 9 14 4 6 43 63 GMV1 (Aggr.) 220 273 181 289 123 205 42 79 566 846 Take-rate1 (Aggr.) 15.5% 17.2% 8.7%
Slide 27: Longer-term Margin Potential
Longer-term Margin Potential SCALE AND MARKETING SPEND FINANCIAL IMPACT OF OUR OWN DELIVERY Delivery Costs Incl. Delivery Revenue COGS / Opex Marketing EBITDA Revenue COGS / Opex Marketing EBITDA Note: Chart is for illustrative purposes only / not drawn to scale Highlights: Attractive Scale, Growth
Slide 28: Multiple Drivers for Long-term Growth
7 Multiple Drivers for Long-term Growth 28
Slide 29: Multiple Drivers for Long-term Growth and Profitability
Multiple Drivers for Long-term Growth and Profitability Ongoing Industry Consolidation Tomorrow Taking on €7.5tn Food Market Opportunity4 Increased M&A Frequency for Scale Through Better Proven EBITDA Experience Take-rate Margin Potential Expansion with by Industry Best Food Market Best Marketplace
Slide 30: Delivery Hero Highlights
DELIVERY HERO HIGHLIGHTS 1 Large Global Market Opportunity 2 Global Leader 3 Local Know How + Global Scale and Execution 4 At the Forefront of Innovation and Technology 5 Proven Business Model 6 Attractive Scale, Growth and Profitability Potential 7 Multiple Drivers for Long-term Growth Highlights:
Slide 31: Appendix
Ne APPENDIX ; j,i
Slide 32: Recent Developments: Delivery Hero Continuing Its Growth Trajectory
Recent Developments: Delivery Hero Continuing Its Growth Trajectory NASPERS MINORITY INVESTMENT (MAY 2017) ACQUISITION OF CARRIAGE (MAY 2017) • €387m investment primarily into the issuance of new • Acquisition of Carriage for a high double digit million Euro shares1 amount combined with an earn-out
Slide 33: Pro Forma Consolidation of foodpanda
Pro Forma Consolidation of foodpanda DELIVERY COSTS COST OF SALES (EXCL. DELIVERY COSTS) in €m 2015 2016 in €m 2015 2016 Delivery Hero Delivery Costs2 122 50 Delivery Hero Cost of Sales ex. Delivery3 173 353 foodpanda Delivery Costs 31 foodpanda Cost of Sales ex. Delivery4 44 In % of DH Segment Reve
Slide 34: Additional Breakdowns for foodpanda Consolidation
Additional Breakdowns for foodpanda Consolidation DETAILS OF ONE-OFF EBITDA ADJUSTMENTS FOR DELIVERY HERO BREAKDOWN OF G&A EXPENSES FOR DELIVERY HERO in €m 2015 2016 in €m 2015 2016 Consolidation 2.0 0.6 Personnel 19.3 26.3 M&A and Financing 7.4 6.3 Audit and Consulting 19.0 21.8 Reorganisation Cost
Slide 35: Asset-Light Business Model
Asset-Light Business Model NWC Items 2015 2015 2015 €M DH FP Aggr. FY 2016 COMMENTS Trade receivables 13 4 17 29 1 • Restaurant cash is not accessed for operational purposes 1 Restaurant cash 24 - 24 401 Inventories 1 <1 1 1 2 • Generally low capex requirements • Increase in 2016 related to Trade an
Slide 36: Substantial Tax Shield From Tax Loss Carry Forwards
Substantial Tax Shield From Tax Loss Carry Forwards TAX LOSS CARRY FORWARDS AND TAX RATES BY SEGMENT CASH TAXES PAID TLCF as of TLCF Weighted Revenue Weighted Dec-16 (€M) Average Tax Rate1 Average Tax Rate2 • Delivery Hero has substantial tax loss carry forwards across its segments to be utilised ov
Slide 37: Group KPIs
Group KPIs (€M) 2015 Q1’16 Q2’16 Q3’16 Q4’16 2016 Q1’17 DH FP LFL3 Aggr.1 DH FP Aggr.1 DH FP Aggr.1 DH FP Aggr.1 DH FP Aggr.1 LFL3 Aggr.1 Group Orders 103 16 102 130 39 5 432 40 6 46 42 8 49 50 9 59 (1)2 197 63 Europe 39 4 2 45 13 1 14 12 1 14 12 1 13 15 2 16 - 57 17 MENA 32 1 14 47 15 1 16 17 1 17
Slide 38: Reconciliation of Segment Revenue and EBITDA
Reconciliation of Segment Revenue and EBITDA (€M) 2015 Q1’16 Q2’16 Q3’16 Q4’16 2016 Q1’17 DH FP LFL3 Aggr.1 DH FP Aggr.1 DH FP Aggr.1 DH FP Aggr.1 DH FP Aggr.1 Aggr.1 Group Segment 166 22 14 202 62 8 70 69 10 79 71 15 86 88 18 106 341 118 Revenue2 Europe 92 4 1 97 33 1 34 35 1 36 32 1 33 41 2 43 147
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet 31 Mar 2017 31 Dec 2016 ASSETS KEUR KEUR A. Non-Current Assets I. Intangible assets 1,275,263 1,304,993 II. Property, plant and equipment 16,012 15,520 III. Other financial assets 5,215 6,709 IV. Trade and other receivables 128 4 V. Other assets 942 57 VI. Deferred tax ass
Slide 40: Consolidated Balance Sheet (cont'd)
Consolidated Balance Sheet (cont’d) 31 Mar 2017 31 Dec 2016 EQUITY AND LIABILITIES KEUR KEUR A. Equity I. Subscribed capital 464 464 II. Capital reserves 1,552,945 1,582,837 III. Retained earnings and other reserves (756,757) (681,480) IV. Treasury shares (5) (5) Equity attributable to shareholders
Slide 41: Consolidated P&L
Consolidated P&L 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 CONTINUING OPERATIONS KEUR KEUR 1. Revenue 121,179 62,784 2. Cost of sales (41,535) (19,675) Gross profit 79,644 43,109 3. Marketing expenses (72,929) (54,953) 4. IT expenses (10,350) (9,178) 5. General administrative expenses (28,940) (31,040
Slide 42: Consolidated P&L (cont'd)
Consolidated P&L (cont’d) 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 CONTINUING OPERATIONS KEUR KEUR Items not reclassified to consolidated profit or loss: Remeasurement of net liability (asset) arising on defined 11. (13) 3 benefit pension plans Items be reclassified to profit or loss in the future: 1
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 CONTINUING OPERATIONS KEUR KEUR 1. Cash flow from operating activities Consolidated loss (50,844) (64,848) Elimination of taxes on income (1,215) (591) Income taxes paid (-) (1,866) (1,232) Depreciation, amortization and impair
Slide 44: Consolidated Cash Flow Statement (cont'd)
Consolidated Cash Flow Statement (cont’d) 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 CONTINUING OPERATIONS KEUR KEUR Inflows (+) from the disposal of intangible assets 28 138 Outflows (-) for investments in intangible assets (1,828) (1,988) Outflows (-)/inflows (+) to acquire financial assets 54 (1,820
Slide 45: Reconciliation of Segment Reporting
Reconciliation of Segment Reporting KEUR 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 Europe 47,130 32,777 MENA 29,568 15,432 Asia 31,628 9,812 Americas 9,775 4,230 Total segment revenue 118,101 62,251 Consolidation adjustments 0 0 Reconciliation effects 3,078 533 Group revenue 121,179 62,784 Source: Com
Slide 46: Adjusted EBITDA
Adjusted EBITDA KEUR 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 Europe (9,444) (17,763) MENA 8,344 2,794 Asia (12,268) (11,295) Americas (5,007) (5,157) Total segment adjusted EBITDA (18,375) (31,421) Consolidation adjustments (665) (60) Management adjustments (2,077) (2,130) Expenses for share-based p
Slide 47: Information on Geographical Areas
Information on Geographical Areas KEUR 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 Germany 21,451 17,898 South Korea 15,259 8,346 Turkey 11,426 9,165 Sweden 8,394 4,109 Kuwait 7,652 3,813 Other countries 56,997 19,453 Subtotal continuing operations 121,179 62,784 United Kingdom 10,003 9,008 Total 131,18
Slide 48: Sources of Revenue
Sources of Revenue KEUR 1 Jan – 31 Mar 2017 1 Jan – 31 Mar 2016 Revenue from Commissions 79,029 45,437 Delivery service 19,288 4,766 Prime placings 9,489 6,102 Credit card use 4,139 2,281 Other 9,234 4,198 Total 121,179 62,784 Source: Company information APPENDIX 48
Slide 49: Consolidated Statement of Comprehensive Income for foodpanda
Consolidated Statement of Comprehensive Income for foodpanda For the Year Ended 31-Dec 2016 2015 (in €M) Continuing Operations R evenues 50.6 23.5 C ost of S ales (2.4) (1.3) Gros s Profit 48.2 22.2 F ulfillment E xpenses (39.7) (22.8) Marketing E xpenses (25.7) (44.4) Technology and C ontent E xpen
Slide 50: Consolidated Statement of Cash Flows for foodpanda
Consolidated Statement of Cash Flows for foodpanda For the Year Ended 31-Dec 2016 2015 (in €M) Cas h Flows from Operating Activities Loss Before Income Tax from C ontinuing Operations (71.3) (102.4) P rofit After Tax from Discontinued Operations 63.3 (12.8) Adjus tments for: Depreciation of P ropert
Slide 51: Consolidated Statement of Cash Flows for foodpanda (cont'd)
Consolidated Statement of Cash Flows for foodpanda (cont’d) For the Year Ended 31-Dec 2016 2015 (in €M) Cas h Flows from Inves ting Activities P roceeds from Disposal or Liquidation of S ubsidiaries, Net of Disposed C ash 90.9 21.8 P urchase of P roperty, P lant and E quipment (1.1) (2.7) Acquisitio
Slide 52: Medium Term Targets at Segment Level
Medium Term Targets at Segment Level: Delivery Hero Scaling Up at High Growth • Order and GMV growth for 2017 in line with 2016; mid-term declining to low 20s by 2019 • On a regional blend basket size should remain broadly in line with Q1 2017 as lower basket size countries are growing faster • Own
Slide 53: Medium-Term Targets
Medium and Long Term View at Group Level • Order growth expected to be stable to modestly lower than Q1 2017 levels for remainder of 2017; thereafter, targeting growth above 30% p.a. with a moderating trend in line with recent quarters Medium-Term Targets by 2019; strong penetration upside and room