Delivery Hero SE · XETR:DHER
Delivery Hero — Q1 2020 Earnings Presentation
40 slides from Delivery Hero's earnings presentation, Apr 28, 2020
Slide 1: Q1 2020 Trading Update
Q1 2020 Trading Update 28th April, 2020 Delivery Hero SE Q1 2020 Trading Update
Slide 2: Our Clear Vision
Our Clear Vision AMAZING MERCHANTS AMAZING ORDERING Always delivering an amazing AMAZING SERVICE experience Delivery Hero SE Q1 2020 Trading Update 2
Slide 3: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 3
Slide 4: Recap and Update on Woowa Partnership
Recap and Update on Woowa Partnership - $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 and
Slide 5: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 5
Slide 6: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights 239m €2.4bn GROSS MERCHANDISE €515m ORDERS REVENUES VALUE +92% +58% +92% YoY Growth YoY Growth YoY Growth All values in unit million / € million and calculated on pro forma basis YoY GMV and revenue growth calculated on a constant currency pro forma basis Delivery Hero S
Slide 7: Consistent Strength of Top Line Growth
Consistent Strength of Top Line Growth Orders (m) GMV (€bn) Revenues (€m) Superior growth vs. reported peer pro forma average of 17%1: +92%2 +58% +92% • Grubhub: 8% • Just Eat: 6% • Takeaway: 16% 239 2.4 515 • Meituan: 37 % 2.3 483 216 2.0 181 391 1.7 1.5 144 315 1.3 125 267 108 1.1 1.0 219 95 1.0 0
Slide 8: Delivering On Our Promise
Delivering On Our Promise Guidance at IPO Status Growth as No.1 Priority Orders increase by 92% despite a 9m negative order effect driven by COVID-19 Increased customer acquisition (+10% vs. March 11) despite COVID-19 • >40% in short- & mid-term • >30% in the long-term Commitment to fast growing Asi
Slide 9: Q1 2020 Business Update
Q1 2020 Business Update Choice: Widest & Most Diverse Restaurant Selection Globally Amid COVID-19 • With >500K restaurants being the widest selection globally outside of China • Acceleration of restaurant acquisition levels by 50K during the last 3 weeks of March • While most restaurants face COVID-
Slide 10: Update on COVID-19 Global Guidance (1/2)
Update on COVID-19 Global Guidance (1/2) Delivery Hero Launched New Global Guidance to Support Local Delivery Ecosystems Government & Local Communities Customers ü Liaising with official bodies to secure delivery right ü Continuing to provide access to essential supplies ü Following official health
Slide 11: Update on COVID-19 Global Guidance (2/2)
Update on COVID-19 Global Guidance (2/2) Delivery Hero Launched New Global Guidance to Support Local Delivery Ecosystems Riders Restaurants ü Communicating hygiene updates and instructions ü Focusing our marketing efforts to support local restaurants ü Providing sanitizer, masks & safety materials t
Slide 12: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 12
Slide 13: Pioneering in Quick Commerce
Pioneering in Quick Commerce The Age of Q-Commerce Has Arrived Untapping a Large and Underpenetrated Market 1 1st Generation 2nd Generation 3rd Generation Delivery Hero Commerce E-Commerce Q-Commerce 104 stores in 9 markets across MENA, Asia, and Americas2 Delivery 2-3 <1 Hour DH E-Commerce Market 2
Slide 14: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 14
Slide 15: Best in Class Own-Delivery Operations
Best in Class Own-Delivery Operations Improved Delivery Time with Scale 38 52% 55% 36 50% Own-Delivery Share Delivery Time (min) 44% 45% Proprietary logistic technology “Hurrier” available in c. 530 cities 34 40% 40% 32 Operational improvements enhance UTR1 by +22% YoY with 35% reduction in delivery
Slide 16: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 16
Slide 17: Q1 2020 Group
Q1 2020 Group Orders GMV Revenues • Continued strong order and revenue growth of 92% despite a 9m negative effect on orders after mid-March, driven by COVID-19 +58% +58% • Increased customer acquisitions 2.378 +92% expected to expand the market opportunity and to be beneficial for +93% online food d
Slide 18: COVID-19 Update Group
COVID-19 Update Group Customer Acquisitions1 350 Phase 1 Phase 2 Impact from COVID-19 pandemic differs from market to market and is 300 evolving rapidly 250 200 Steady growth throughout COVID-19 with expansion of customer base beyond typical demographics, e.g. elderly (+10% vs. March 11) 150 Apr 26
Slide 19: Q1 2020 Asia Platform Business
Q1 2020 Asia Platform Business Orders GMV Revenues • Continued very strong order growth of 261% driven by early stage markets in APAC • Strategic partnership with Woowa expected to help expand footprint +126% • Own-delivery at 70% of total orders +126% in Q1 2020 939 +198% • 16 Dmarts1 launched in S
Slide 20: COVID-19 Update Asia
COVID-19 Update Asia Customer Acquisitions1 350 Phase 1 Phase 2 300 250 Slight acceleration of acquisitions in a few markets during the peak of 200 global pandemic, while Pakistan and Bangladesh imposed partial curfew 150 affecting food delivery (+4% vs. March 11) Apr 232 100 +4% 50 0 Phase 1: Solid
Slide 21: Q1 2020 MENA Platform Business
Q1 2020 MENA Platform Business Orders GMV Revenues • 31% YoY growth reflecting strict measures implemented by governments reacting to COVID-19 • Own-delivery at 35% of orders in Q1 2020 +28% +29% • Expansion to 85 Dmarts1 in Turkey, Kuwait, UAE, and KSA2 +38% 957 +41% • MENA platform business adjust
Slide 22: COVID-19 Update MENA
COVID-19 Update MENA Customer Acquisitions1 Deceleration of acquisitions in markets where curfews being 350 Phase 1 Phase 2 implemented, while markets not impacted by curfews have seen steep 300 acceleration of acquisitions 250 With no new government restrictions, acquisitions are stabilizing and 20
Slide 23: Q1 2020 Europe Platform Business
Q1 2020 Europe Platform Business Orders GMV Revenues • Continued order growth of 33% YoY despite effects of COVID-19 measures: - Fastest growing European food delivery business amongst publicly listed European peers1 • Increasing customer acquisitions in most markets (e.g. Nordics currently growing
Slide 24: COVID-19 Update Europe
COVID-19 Update Europe Customer Acquisitions1 350 Phase 1 Phase 2 300 250 Significant growth of acquisitions in Nordics and Eastern Europe as new 200 customer groups trying food delivery platform whilst country lock-down 150 Apr 26 happens (+62% vs. March 11) +62% 100 After an initial drop in orders
Slide 25: Q1 2020 Americas Platform Business
Q1 2020 Americas Platform Business Orders GMV Revenues • Significant acceleration in order growth of 79% YoY (Q1 2019: 36% YoY growth), despite negative impact from COVID-19 in March, with potential for further upside • Own-delivery at 62% of total orders in Q1 2020 • Expansion to 3 Dmarts3 in Argen
Slide 26: COVID-19 Update Americas
COVID-19 Update Americas Customer Acquisitions1 350 Phase 1 Phase 2 300 250 200 Apr 26 Significant growth in acquisitions except for markets with strict 150 +118% curfew measures (+118% vs. March 11) 100 50 0 Jan Jan Jan Feb Feb Feb Feb Mar Mar Mar Mar Apr Apr Apr Apr Phase 1: Americas governments r
Slide 27: Q1 2020 Integrated Verticals
Q1 2020 Integrated Verticals Orders GMV Revenues • Integrated Verticals capture orders where Delivery Hero acts as a principal (e.g. Dmart1 & DH Kitchens2) • Small portion of the overall business – expected to grow over time • Expected impact on revenues <5% – fundamentally different economics to pl
Slide 28: Agenda
Agenda 1 Recap and Update on Woowa Partnership 2 Business Update 3 Strategy Update 4 Case Study 5 Financial Update 6 Outlook Delivery Hero SE Q1 2020 Trading Update 28
Slide 29: Healthy Cash Position Provides Flexibility to Invest
Healthy Cash Position Provides Flexibility to Invest … Net Cash & Woowa Cash Net Cash & Liquid Assets Component Liquid Assets March 20201 expected in H2 March 20201,3 20202 €2.8bn -€1.7bn >€1.1bn Cash for general corporate purposes & M&A activity No major impact on cash position due to COVID-19 pand
Slide 30: Equity Value Bridge
Equity Value Bridge Enterprise Value1 Net Cash & Portfolio Value of Equity Value1 Liquid Assets Minority Holdings3 March 20202 c. €0.7bn > €1.1bn c. €1.8bn 1. Illustrative value 2. As defined per previous page 3. Latest portfolio valuation of all minority interests (excluding Takeaway.com) as per Q1
Slide 31: Outlook
Outlook 2020E Guidance: Revenues €2.4bn to €2.6bn €1.45bn Reflecting a growth rate of c. 70% YoY1 Adjusted EBITDA -14% to -18% Plus additional investments of up to €200m • Flexibility of additional investments of up to €200m, with the majority not yet spent • Funds intended to be opportunistically a
Slide 32: Delivery Hero at a Glance: Best-in-class Performance and Global Leadership
Delivery Hero at a Glance: Best-in-class Performance and Global Leadership Scale Leadership Technology >3m c. 86% 30 >3m orders delivered in Increased global 30 markets with a single day with order leadership positions to multi-vertical growth of 92% YoY now 36 out of 42 delivery platform markets1 r
Slide 33: Appendix
APPENDIX Delivery Hero SE Q1 2020 Trading Update 33
Slide 34: Financial Calendar 2020
Financial Calendar 2020 Roadshow 2020 Upcoming 2020 Location Date Event Release Date Paris 29 April Annual General Meeting 18 June Frankfurt 30 April Q2 2020 Trading Update 30 July London 04-05 May US East Coast 06 May H1 2020 Financial Results 27 August US West Coast 07 May Q3 2020 Trading Update 2
Slide 35: Adjustments
Adjustments Definition • The reported pro forma figures have been retrospectively adjusted for divestments of Foodora non-core assets e.g. Australia, France, Italy & Netherlands and Germany – Figures have not been adjusted for other acquisitions or divestments that can be found in the table below •
Slide 36: Delivery Hero KPIs (1/2)
Delivery Hero KPIs (1/2) 2018 2019 2020 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Q4 FY Q1 Delivery Hero Group Orders 80.2 86.4 166.6 94.5 108.3 369.4 124.5 144.2 268.8 181.3 216 666.1 238.5 % YoY Growth 51.8% 48.3% 50.0% 49.0% 46.7% 48.8% 55.2% 67.0% 61.4% 91.8% 99.4% 80.3% 91.5% % OD Orders 10.2% 11.9%
Slide 37: Delivery Hero KPIs (2/2)
Delivery Hero KPIs (2/2) 2018 2019 2020 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Q4 FY Q1 Europe Orders 13.8 14.6 28.4 14.3 17.5 60.3 19.2 20.8 39.9 20.7 24.4 85.0 25.4 % YoY Growth 37.9% 39.1% 38.5% 43.5% 44.6% 41.4% 38.5% 42.1% 40.4% 44.5% 39.5% 41.1% 32.9% % OD Orders 6.1% 6.4% 6.2% 7.8% 8.5% 7.3% 10.
Slide 38: Definitions
Definitions • Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants • Revenues presented for Delivery Hero represent the total segment revenues prior to discounts • Constant currency provides an indication of the business performance by removing the im
Slide 39: Delivery Hero Investor Relations Team
Delivery Hero Investor Relations Team Julia Caroline Stoetzel Jabban IR Director IR Associate julia.stoetzel@deliveryhero.com caroline.jabban@deliveryhero.com Team Contact T: +49 3054 4459 000 70 Oranienburger Straße 10117 Berlin Germany ir@deliveryhero.com https://ir.deliveryhero.com Delivery Hero
Slide 40: Important Notice
Important Notice • ALL FINANCIAL FIGURES INCLUDED IN THE PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE. • 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