Delivery Hero Se · XETR:DHER
Delivery Hero — Q3 2024 Earnings Presentation
46 slides from Delivery Hero's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Trading Update
Q3 2024 Trading Update 7 November 2024
Slide 2: Table of contents
Table of contents 01 Trading Update 02 Case Studies 03 Outlook 04 Appendix 2
Slide 3: Q3 2024 Key Highlights
Q3 2024 Key Highlights GMV growth continued to accelerate to 9% YoY1. GMV outside of Asia grew 25% YoY1 Total Segment Revenue growth of 24% YoY1 in Q3 ‘24 exceeding GMV development Further improvement in profitability with adj. EBITDA2 on Group level growing sequentially Europe Platform business ach
Slide 4: Q3 2024 Delivery Hero Group
Q3 2024 Delivery Hero Group GMV (€bn) Total Segment Revenue (€bn) Key Highlights GMV growth accelerated to 9% YoY in Q3 ‘24 from 7% YoY in Q2 ‘24. This was predominantly driven by growing order volumes, which contributed 2/3 to +9% +24% GMV growth. Basket size development contributed +6% +21% 1/3 to
Slide 5: Double-digit revenue growth across all business segments
Double-digit revenue growth across all business segments Europe Revenue (€m) MENA Revenue (€m) Asia Revenue (€m) +32% +17% +27% +28% +26% +13% 468 891 1,053 723 929 370 Q3 ’23 Q3 ’24 Q3 ’23 Q3 ’24 Q3 ’23 Q3 ’24 Americas Revenue (€m) Integrated Verticals Revenue (€m) +20% +26% +17% +21% 234 673 202 5
Slide 6: Q3 2024 Europe Platform business
Q3 2024 Europe Platform business GMV (€bn) Total Segment Revenue (€m) Key Highlights GMV growth accelerated further to 21% YoY, driven by healthy order growth of 17% YoY and fueled by increasing subscriber penetration +27% +21% +26% +20% 468 Continued to roll out delivery logistics, bringing 2.2 own
Slide 7: Q3 2024 MENA Platform business
Q3 2024 MENA Platform business GMV (€bn) Total Segment Revenue (€m) Key Highlights Strong GMV growth driven by a 25% YoY increase in order volumes due to continued leadership across +30% +32% all markets, and attractive affordability initiatives +25% +28% including vendor funded deals 3.2 3.2 891 89
Slide 8: Q3 2024 Asia Platform business
Q3 2024 Asia Platform business GMV (€bn) Total Segment Revenue (€m) Key Highlights GMV impact from fading out free delivery for non- subscribers less pronounced than anticipated -3% +17% -7% +13% Successful launch of Woowa’s subscription with 6.4 1,053 now more than 3 million subscribers 6.0 929 APA
Slide 9: Q3 2024 Americas Platform business
Q3 2024 Americas Platform business GMV (€m) Total Segment Revenue (€m) Key Highlights GMV growth accelerated to 21% YoY in Q3 ’24 driven by double-digit volume growth, despite +21% temporary macroeconomic challenges in Argentina as +20% +18% inflation control measures weigh on consumers' +17% purcha
Slide 10: Q3 2024 Integrated Verticals
Q3 2024 Integrated Verticals GMV (€m) Total Segment Revenue (€m) Key Highlights Continued strong top-line momentum, with GMV growth at 32% YoY despite a 15% lower number of +32% +26% Dmarts in Q3 ’24 compared to prior year. ~50% of the +26% growth comes from increasing number of orders, +21% ~50% fr
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 Stable Gross Profit margin of the Platform 12% business in Q3 ’24 compared to prior year. Temporary decline compared to Q2 ’24 due to extended free delivery and roll-out of s
Slide 12: Table of contents
Table of contents 01 Trading Update 02 Case Studies 03 Outlook 04 Appendix 12
Slide 13: South Korea
South Korea
Slide 14: Setting the stage for sustainable growth and profitability
Setting the stage for sustainable growth and profitability Actions and Outcomes ✓ Successful subscription rollout with almost ✓ Category share stabilized after decline due to the nationwide availability and rapid subscriber growth cancellation of free delivery for non-subscribers. While within 3 mon
Slide 15: Glovo
Glovo
Slide 16: Glovo excels on every front
Glovo excels on every front Huge Total Addressable Market with footprint serving >600 million people Clear category leadership since >80% of GMV being generated in #1 countries Strong top-line momentum generating GMV growth of 23% (CAGR) since FY ‘22 Massive improvement in profitability boosting adj
Slide 17: Expanding our leadership positions
Expanding our leadership positions Leading in 16 out of 22 countries1 Spain (MAUs3) Italy (MAUs3) Western Europe CIS & Africa (68% of GMV2) (17% of GMV2) Spain #1 Morocco #1 Italy #1 Tunisia #1 Poland #1 Georgia #1 Portugal #2 Ukraine #1 Kazakhstan #2 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23
Slide 18: Accelerating growth, extending leadership and increasing profitability
Accelerating growth, extending leadership and increasing profitability GMV1 Adj. EBITDA2 Key Highlights Strong top-line momentum leading to expected GMV growth of 23% (CAGR) since FY ’22, clearly 23% CAGR Positive adj. EBITDA exceeding European peers. Less mature countries in Q3 ’24 and H2 ‘24 growi
Slide 19: Americas
Americas
Slide 20: Underlying demand is set to enhance Food Delivery in the years ahead
Underlying demand is set to enhance Food Delivery in the years ahead GMV driven by Strong Leadership countries Emerging market with significant untapped potential 79%1 – Strong Leadership Population in millions2 GDP per capita in U.S. dollars2 20%1 – Head-to-Head 1%1 – Number 2 +7% +29% 219 12,873 2
Slide 21: Strong growth over recent years lifts Americas to profitability
Strong growth over recent years lifts Americas to profitability GMV1 Adj. EBITDA/GMV margin2 Key Highlights excl. Argentina Robust GMV growth of 15% (CAGR) expected since 2022, despite challenges in Argentina stemming 26% CAGR from the macroeconomic situation. Argentina top- line growth expected to
Slide 22: Profitability path
Profitability path
Slide 23: 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 24: Table of contents
Table of contents 01 Trading Update 02 Case Studies 03 Outlook 04 Appendix 24
Slide 25: Delivery Hero Group updates outlook for FY 2024
Delivery Hero Group updates outlook for FY 2024 Upper end of 7-9% YoY GMV Previously: 7-9% YoY Total Segment Upper end of 18-21% YoY Revenue Previously: 18-21% YoY Adj. EBITDA Lower end of €725-775m Previously: €725-775m Free Cash Flow €50-100m Previously: Positive Note: GMV and Total Segment Revenu
Slide 26: 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 27: Table of contents
Table of contents 01 Trading Update 02 Case Studies 03 Outlook 04 Appendix 27
Slide 28: 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 Q3 Delivery Hero Group GMV 11,198.9 11,083.8 22,282.7 11,693.4 11,299.1 45,275.2 11,788.9 11,897.6 23,686.5 12,249.3 % YoY Growth (RC) 1.5% 2.9% 2.2% 2.1% -0.5% 1.5% 5.3% 7.3% 6.3% 4.8% % YoY Growth (CC) 2.1% 8.1% 5.1% 8.
Slide 29: 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 Q3 Europe GMV 1,809.5 1,836.9 3,646.5 1,819.5 2,044.1 7,510.0 2,132.4 2,176.7 4,309.1 2,185.0 % YoY Growth (RC) 13.4% 15.0% 14.2% 13.4% 15.3% 14.3% 17.8% 18.5% 18.2% 20.1% % YoY Growth (CC) 14.9% 17.0% 16.0% 15.3% 16.3% 1
Slide 30: 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 31: 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 32: Hyperinflation accounting in Argentina and Turkey
Hyperinflation accounting in Argentina and Turkey Argentina Turkey Monthly CPI change Monthly devaluation EUR/ARS % Monthly CPI % Monthly devaluation EUR/TRY % 140% Q3 2024 30% Q3 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 Nov-23 Jan-24 Mar-24 May-
Slide 33: talabat Q3 2024 Financial Update
talabat Q3 2024 Financial Update
Slide 34: Strong GMV growth…
Strong GMV growth… GMV(1) ($m) ▪ talabat achieved 21% GMV growth over 9M23- YoY YoY 9M24 period mainly due to stronger order volumes across all regions 21% 23% ▪ In 9M24, we continued to experience strong consumer demand, improving order 5,384 frequency, and robust growth in Grocery & 776 Retail bus
Slide 35: …translating into strong revenue growth
…translating into strong revenue growth Total Management Reporting Revenue ($m) ▪ Total revenue increased by 32% YoY in 9M24, % of exceeding GMV growth mainly due to further 36.4% 39.6% 36.7% 40.0% GMV upside from non-commission revenues, YoY YoY delivery & service fees, and our tMart business 32% 3
Slide 36: Gross profit margin expansion due to better unit economics & cost optimisation
Gross profit margin expansion due to better unit economics & cost optimisation Gross profit ($m) ▪ talabat successfully increased gross profit margin % of by 1.1% to 12.3% for 9M24, mainly due to 11.2% 12.3% 11.1% 12.1% GMV better unit economics & cost optimisation % of 30.6% 31.0% 30.2% 30.2% ○ Fur
Slide 37: Stellar growth trajectory with continuous margin improvement
Stellar growth trajectory with continuous margin improvement Adj. EBITDA(1) ($m) ▪ Adjusted EBITDA increased by 63% YoY to $358M % of for 9M24 mainly due to the following factors: 4.9% 6.7% 5.3% 6.6% GMV ○ Strong top-line growth and gross profit % of 13.6% 16.8% 14.4% 16.5% margin expansion revenue
Slide 38: Strong earnings trajectory
Strong earnings trajectory Adjusted Net income(1) ($m) ▪ Adjusted net income increased by 72% YoY to % of $271M (5.0% of GMV) for 9M24, outpacing 3.5% 5.0% 4.2% 5.1% GMV revenue and Adjusted EBITDA(2) growth rate % of mainly due to increased cost efficiencies and 9.7% 12.7% 11.5% 12.6% revenue (3) t
Slide 39: Outstanding free cash flow profile
Outstanding free cash flow profile Free Cash Flow(1) ▪ Free cash flow increased by 68% YoY to $345M (96% cash conversion) for 9M24, ($m) 9M-23 9M-24 Q3-23 Q3-24 partially driven by talabat’s low capex requirements and positive working capital effects Adj. EBITDA(2) 219 358 83 128 ○ (A) Asset-light b
Slide 40: Ample balance sheet capacity due to current net cash position and no financial debt
Ample balance sheet capacity due to current net cash position and no financial debt at IPO Capital structure overview ($m) 9M-24 IFRS 16 lease liabilities 92 Shareholder loan (Net position) 2 Cash and cash equivalents (316) Net debt/(Net cash) (222) Total equity/(deficit) 408 Source: Company informa
Slide 41: Financial guidance vs. 9M-24: on track to meet FY2024 guidance
Financial guidance vs. 9M-24(1): on track to meet FY2024 guidance Outlook 9M-24 2024E forecast 2025E forecast Medium-term 22-23% 17-18% 21% GMV growth 14-15% (YoY 2023-24) (YoY 2024-25) (YoY 9M23-9M24) 28-30% 18-20% 32% Revenue growth 15-17% (YoY 2023-24) (YoY 2024-25) (YoY 9M23-9M24) Adj. EBITDA ma
Slide 42: Gross profit to Adj. EBITDA bridge
Gross profit to Adj. EBITDA bridge Gross profit to Adj. EBITDA(1) bridge ($m) ▪ High operating leverage support further cost 9M-23 9M-24 Q3-23 Q3-24 efficiencies and Adj. EBITDA margin expansion ($m) 9M-23 9M-24 Q3-23 Q3-24 % of GMV % of GMV % of GMV % of GMV ▪ (A) Marketing expenses mainly include
Slide 43: Adj. EBITDA bottom-up build-up
Adj. EBITDA bottom-up build-up Net Income to Adj. EBITDA(1) Bridge 9M24 ($m) 358 (38) (1) (9) (58) (25) (20) 208 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 EBITDA is de
Slide 44: 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 45: 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 46: Investor Relations Contact
Investor Relations Contact Christoph Bast Barbara Jeitler Moritz Verleger Lukas Herzog Loredana Strîmbei Head of IR Director IR Senior Manager IR Manager IR Specialist IR christoph.bast@deliveryhero.com barbara.jeitler@deliveryhero.com moritz.verleger@deliveryhero.com lukas.herzog@deliveryhero.com l