Slide 1: Q2 2023 Results
Q2 2023 Results August 10th, 2023 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by HelloFresh SE (the “Company“ and, together with its subsidiaries, the “Group”). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a f
Slide 3: Our Mission, Our Vision
Our Mission We change the way people eat forever Our Vision The world’s leading, fully integrated foods solution group
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights Constant currency revenue growth of 1% as the decrease in active customers is more than offset by an AOV increase of 8% on a constant currency basis, and continued strong AORs of 4.1 Operational efficiencies on both procurement and fulfilment expenses drive very substantial contri
Slide 5: 1500+ Models: HelloFresh AI use
HelloFresh has been actively using and developing artificial intelligence for 6+ years as a part of its tech platform Select current applications 6+ Working on developing AI / ML tools years and know how - Menu creation 70+ AI/ML dedicated data scientists and machine learning engineers - Customer li
Slide 6: Potential application of AI/ML and GenAI across the value chain
We are excited about the potential application of AI/ML and GenAI to many parts of our value chain, and have seen positive early results in controlled testing Revenue Procurement Fulfilment Marketing G&A Recipe choice Recipe design Dynamic packaging Incentive Code assist customization generation opt
Slide 7: We delivered 254m meals in Q2 2023
We delivered 254m meals in Q2 2023 • Driven by lower active customers, number of meals 2022 Q2 Number of Meals down (6.0%) y-o-y 2023 (in millions) • Disciplined approach to growth marketing, in the (6.0%) context of: ◦ Softer consumer environment in certain 269.8 geographies, including the US 253.6
Slide 8: Further increased average order rate
Against an already very healthy benchmark, we have further increased average order rate • Average order rate increased by 2% y-o-y to 4.1 2022 Q2 Average Order Rate 2023 (orders per customer) • Driven by continued improvements to: ◦ menu choices 2.0% ◦ product quality ◦ relative affordability 4.0 4.
Slide 9: Average order value expansion key driver of revenue growth
Average order value expansion has been the key driver of revenue growth in Q2 • Group AOV increased 8.4% on a CC basis 2022 Q2 Average Order Value 2023 (in €) • Both segments showed meaningful increase in AOV: ◦ NA: 9.7% (CC) +5.3% ◦ Intl: 6.5% (CC) CC +8.4% • AOV increase primarily driven by: 63.6
Slide 10: 1% CC revenue growth through AOV and AOR expansion
We generated 1% CC revenue growth through further AOV and AOR expansion • Revenue growth in CC of 0.8% 2022 Q2 Group Revenue ◦ US CC revenue growth of 1.3% 2023 (in € millions) ◦ Intl CC revenue growth flat (2.0)% • Revenue growth supported by meaningful AOV CC +0.8% growth and AOR expansion, more t
Slide 11: Procurement costs reduction by 1pp
Successful procurement costs reduction by 1pp, despite ongoing food price inflation • Overall ingredient prices still inflationary, even 2022 Q2 Procurement Costs though at lower vehemence than in 2022 2023 (in % of revenue) • Against this backdrop, strong cost control exercised 0.6pp across both se
Slide 12: Fulfilment efficiencies adding 2pp to margin expansion
Continued progress on realizing fulfilment efficiencies, adding 2pp to margin expansion • Continued progress on production efficiencies: 2022 Q2 Fulfilment Costs ◦ Raising maturity and optimizing footprint of 2023 (in % of revenue) fulfilment center network ◦ Ongoing roll-out of FC technology and 2.
Slide 13: Contribution margin expanded to 28%
Contribution margin expanded to 28%, a ~3pp increase y-o-y • Successful execution of our contribution margin 2022 Q2 Contribution Margin1 expansion program, despite ongoing factor inflation 2023 (in € millions & in % of revenue) and the continued ramp-up of new businesses and brands 9.1% ◦ 4th quart
Slide 14: Disciplined approach to marketing spend
Disciplined approach to marketing spend in Q2 2023 against a reasonably soft consumer environment • 16.3% of revenue spent in marketing, broadly in line 2022 Q2 Marketing1 with same period last year 2023 (in % of revenue) • Capital allocation discipline exercised against a (0.7)pp backdrop of: ◦ Ove
Slide 15: Highest-ever quarterly AEBITDA of €192m
Highest-ever quarterly AEBITDA of €192m delivered in Q2, a 10% margin and >30% y- o-y absolute growth • Successful expansion of AEBITDA margin to 10% 2022 Q2 AEBITDA margin 2023 (in € millions & in % of revenue) • Growth in AEBITDA margin primarily driven by: ◦ Strong contribution margin expansion 3
Slide 16: Cash flow from operating activities and positive free cash flow in H1
We have successfully increased cash flow from operating activities in H1 and have returned to positive free cash flow • H1 2023 Cash flow from operating activities at H1 Cash Position €207m, an increase of 17.1% vs H1 2022 (in € millions) • H1 2023 capex of €169m. Still tracking towards the €m “mid
Slide 17: FY 2023 outlook narrowed
FY 2023 outlook narrowed to 2% – 8% CC revenue growth and €470m - €540m AEBITDA Constant Currency Revenue Growth 2% - 8% AEBITDA €470m - €540m Q2 2023 Results | 17
Slide 18: Appendix
Appendix 18
Slide 19: Group: Operational and Financial KPIs
Group: Operational and Financial KPIs Q2 22 Q2 23 Active Customers (m) 8.0 7.3 Average Order Rate 4.0 4.1 Average Order Value (€) (excl. retail) 60.4 63.6 Average Order Value constant currency (€) 60.4 65.5 0.8% CC4 % YoY revenue growth1 Revenue1 (2.0)% € (€m) 1,957.1 1,917.5 % Revenue 25.6% 28.4% C
Slide 20: North America: Operational and Financial KPIs
North America: Operational and Financial KPIs Q2 22 Q2 23 Active Customers (m) 4.6 4.1 Average Order Rate 4.1 4.2 Average Order Value (€) 69.3 74.0 Average Order Value constant currency (€) 69.3 76.0 1.3% CC4 % YoY revenue growth1 Revenue (1.4)% € (€m) 1,282.0 1,264.6 27.1% 31.4% Contribution margin
Slide 21: International: Operational and Financial KPIs
International: Operational and Financial KPIs Q2 22 Q2 23 Active Customers (m) 3.4 3.2 Average Order Rate 4.0 4.1 Average Order Value (€) 48.4 49.9 Average Order Value constant currency (€) 48.4 51.5 —% CC4 % YoY revenue growth1 Revenue1 (3.3)% € (€m) 675.1 652.9 23.5% 24.4% Contribution margin2 % R
Slide 22: Profit and Loss Statement
Profit and Loss Statement 3 months ended Change % 6 months ended Change % 30-Jun-23 30-Jun-22 YoY 30-Jun-23 30-Jun-22 YoY Revenue 1,917.5 1,957.1 (2.0)% 3,933.6 3,872.5 1.6% Procurement Expense (648.4) (672.3) (3.6)% (1,371.2) (1,333.6) 2.8% Fulfilment Expense (732.7) (792.0) (7.5)% (1,503.2) (1,569
Slide 23: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement In MEUR As at 30-Jun-23 As at 31-Dec-22 Assets Non-current assets 1,737.9 1,623.0 Cash and cash equivalents 464.5 504.0 Other current assets 357.6 408.2 Total assets 2,560.0 2,535.2 Equity and liabilities Equity 1,037.4 959.6 Non-current liabilities 661.8 605.1 Cu
Slide 24: Share Count
Share Count As of June 30, 2023 Types of share Ordinary shares Stock exchange Frankfurt Stock Exchange Market Segment Regulated Market (Prime Standard) Number of shares issued 172,403,460 Number of shares outstanding 172,171,505 Employee Incentive Plan Options RSU Total Vested (in mn) 8.2 0.3 8.5 WA
Slide 25: HelloFresh Group
HELLOFRESH GROUP