Delivery Hero Se · XETR:DHER
Delivery Hero — Q1 2024 Earnings Presentation
47 slides from Delivery Hero's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Trading Update
Q1 2024 Trading Update 25 April 2024
Slide 2: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 2
Slide 3: Q1 2024 Key Highlights
Q1 2024 Key Highlights GMV growth of 8% YoY1 in Q1 2024 driven by accelerating order development Total Segment Revenue growth of 21%1 YoY in Q1 2024 driven by multiple levers including AdTech – raising FY 2024 revenue outlook to 18-21% YoY (prev. 15-17% YoY) Gross Profit margin expanded by +60 bps Y
Slide 4: Strong GMV and revenue development in Q1 2024
Strong GMV and revenue development in Q1 2024 GMV (€bn) Total Segment Revenue (€bn) 8% 21% 5% 17% 3.0 11.8 11.2 2.5 Q1 ‘23 Q1 ‘24 Q11‘23 Q12 ‘24 Key highlights § Positive GMV development in Q1 2024 driven by healthy order growth § Strong double-digit Total Segment Revenue growth driven by AdTech rev
Slide 5: Double-digit revenue growth across the majority of our business segments
Double-digit revenue growth across the majority of our business segments Europe Revenue (€m) MENA Revenue (€m) Asia Revenue (€m) 26% 29% 14% 25% 27% 8% 757 441 1,002 594 924 352 Q1 ‘23 Q1 ‘24 Q1 ‘23 Q1 ‘24 Q1 ‘23 Q1 ‘24 Americas Revenue (€m) Integrated Verticals Revenue (€m) 6% 27% 2% 23% 210 631 17
Slide 6: Q1 2024 Europe Platform business
Q1 2024 Europe Platform business +19% GMV (€bn) +18% Key Highlights 2.0 2.1 1.8 1.8 1.8 1.8 1.5 1.6 1.6 1.6 § Strong GMV growth of 19% YoY mainly 1.3 1.3 1.3 driven by double-digit order growth and larger baskets § Our subscription Foodora PRO now at 1 2 2021 3 4 5 6 2022 7 8 9 10202311 12 13 ~20% o
Slide 7: Q1 2024 MENA Platform business
Q1 2024 MENA Platform business GMV (€bn) +24% excl. hyperinflation accounting +22% Key Highlights incl. hyperinflation accounting 2.7 2.6 2.7 2.4 2.5 2.7 2.2 2.2 2.7 2.7 1.9 2.0 2.3 2.3 § Sustained double-digit top-line growth, 1.8 2.3 2.3 1.5 1.6 1.8 1.9 2.0 despite 12 additional days of Ramadan 1.
Slide 8: Q1 2024 Asia Platform business
Q1 2024 Asia Platform business GMV (€bn) 0% -5% Key Highlights 6.9 6.8 6.7 6.7 6.5 6.5 6.5 6.4 6.3 6.2 6.1 5.1 5.6 § Significant push to drive GMV growth in 4.7 South Korea with free delivery, Starbucks 3.9 3.3 partnership and several key features 2.8 § Strong Revenue growth of 14% driven by own-del
Slide 9: Q1 2024 Americas Platform business
Q1 2024 Americas Platform business GMV (€m) +7% excl. hyperinflation accounting +4% Key Highlights 802 incl. hyperinflation accounting 747 764 707 780 713 682 709 751 772 776 637 477 510 553 674 672 § GMV uplift of 7% YoY due to double- 447 560 579 381 417 464 513 558 digit order growth in most coun
Slide 10: Q1 2024 Integrated Verticals
Q1 2024 Integrated Verticals GMV (€m) +25% excl. hyperinflation accounting +21% Key Highlights incl. hyperinflation accounting 645 615 586 557 648 522 531 603 486 426 450 496 521 531 542 549 § Strong GMV growth of 25% YoY in Q1 318 358 426 457 2024 while substantially improving unit 259 319 359 econ
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 12% § Gross Profit margin of the Platform business increased by 240 bps since 10% Q1 2022 to 7.6% in Q1 2024 § Further margin expansion expected 8% throughout the year § AdTe
Slide 12: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 12
Slide 13: Annual Results
Annual Results
Slide 14: Financial results for FY 2023
Financial results for FY 2023 Total Segment Revenue (€bn) Adj. EBITDA (€m) Operating Cash Flow1 (€m) +13% (20) 10.5 254 9.2 Operating Cash Flow (689) uplift of €669m Adj. EBITDA (467) uplift of €721m FY ’22 FY ’23 FY ’22 FY ‘23 FY ‘22 FY ‘23 Key highlights § Double-digit Revenue growth driven by AdT
Slide 15: Net result in FY 2023 materially influenced by non-cash items
Net result in FY 2023 materially influenced by non-cash items Values in €m Cash relevant Non-Cash relevant 254 (148) (2,003) (142) (123) (142) (247) (555) (858) (2,305) (485) (413) Adjusted Management D&A Leasing Net interest Income SBC Goodwill D&A excl. Others Net result EBITDA adjustments (IFRS 1
Slide 16: Items below the adj. EBITDA have already been reduced substantially
Items below the adj. EBITDA have already been reduced substantially (in % of GMV) FY 2022 FY 2023 Change YoY in € Non-cash items Adj. EBITDA (1.1)% 0.6% +721m Management adjustments (0.5)% (0.3)% +47m o/w corporate finance, financing and legal matters (0.4)% (0.2)% +87m o/w reorganization measures (
Slide 17: Ample liquidity position combined with a balanced debt maturity profile
Ample liquidity position combined with a balanced debt maturity profile Cash (€bn) Debt maturity profile (€m) Comment § €1.8bn in pro-forma cash post recent refinancing, minority disposal and convertible repayments § €3.9bn in outstanding convert. bonds, at a weighted average 1,775 2 coupon of 1.8%
Slide 18: Organic cash flow generation comfortably exceeds upcoming maturities
Organic cash flow generation comfortably exceeds upcoming maturities € million (91) (650) (875) (750) (500) (1,000) (1,775) Pro-Forma Levered Free Cash Convertible Convertible Convertible Convertible Convertible Convertible Term Loan Cash Cash as of Flow Generation Bonds FY'25 Bonds FY'26 Bonds FY'2
Slide 19: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 19
Slide 20: Driving Leadership
Driving Leadership
Slide 21: We have competed with many strong players over the years…
We have competed with many strong players over the years… 21
Slide 22: …with >90% GMV now coming from leadership markets
…with >90% GMV now coming from leadership markets Head to Head markets <5% Non-leadership markets <5% Examples: Peru, Portugal Examples: Thailand, Finland Leadership markets >90% GMV Examples: South Korea, KSA, UAE, Kuwait, Spain, Argentina, Greece Q4’23 22
Slide 23: Operating Model
Operating Model
Slide 24: Delivery Hero is combining central services with strong local execution
Delivery Hero is combining central services with strong local execution Central Global Services Perf. & Finance, Tech and Product Marketing Legal & HR1 ● Vendor App ● Rider App ● Picker App ● Search ● Data Platform ● International ● SAP ● Advertising ● Recruiting ● Warehousing ● Recommendations ● ML
Slide 25: Higher cost efficiency through centralization and focus on Product & Tech
Higher cost efficiency through centralization and focus on Product & Tech Central FTE Base (#) Comment -21% § Increased centralization scope while reducing central headcount; additional SG&A savings in regions § Focused resources in Product & Tech via >50 Global Services driving local costs and reve
Slide 26: Significant operating leverage and cost efficiency measures in overhead cost development
Significant operating leverage and cost efficiency measures reflected in our overhead cost development G&A expenses as a % of GMV1 Recent cost reduction initiatives § Headcount reductions focused on centralizing functions while further improving tech / product leadership § Closed Tech Hubs in Turkey
Slide 27: Glovo
Glovo
Slide 28: Strong GMV growth and adj. EBITDA break-even expected in H2 2024
Strong GMV growth and adj. EBITDA break-even expected in H2 2024 Glovo - GMV (in €m) Glovo - Adj. EBITDA margin (as % of GMV) +44% Positive adj. EBITDA expected in H2 2024 FY '22 FY '23 FY '24E FY '22 FY '23 FY '24E § Outstanding GMV growth trajectory with strong performance across all countries § A
Slide 29: Glovo continues to sustainably scale since acquisition
Glovo continues to sustainably scale since acquisition Pre-acquisition Post-acquisition Comment Adj. EBITDA § GMV grew >90% at Glovo since (11.2%) (0.5%)1 margin pre-acquisition in 2021 and clear leadership markets already >85% of delivering positive adj. EBITDA in Glovo’s GMV 20241 § Improved categ
Slide 30: Dmarts
Dmarts
Slide 31: Rationalization and optimization of Dmarts leading to significant financial improvements
Rationalization and optimization of Dmarts leading to significant financial improvements Comprehensive footprint Deep operational Rapid financial improvement rationalization optimization Footprint reduced to focus Multiple tech-led margin on only the healthiest core expansion levers deployed Clear p
Slide 32: Best performing country already highly profitable and cash-generative
Best performing country already highly profitable and cash-generative GMV (in €m) Adj. EBITDA margin (as % of GMV) +177% 7% 4% -1% FY '21 FY '22 FY '23 FY '21 FY '22 FY '23 § Outstanding growth trajectory: GMV tripled within 2 years § Profitability reaching adj. EBITDA margin of 7% and attractive FC
Slide 33: Profitability path
Profitability path
Slide 34: 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 35: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 35
Slide 36: Updated Outlook for Delivery Hero Group in FY 2024
Updated Outlook for Delivery Hero Group in FY 2024 Gross Profit to exceed GMV 7-9% YoY GMV growth as margins continue to expand Total Segment Revenue 18-21% YoY [prev. 15-17% YoY] €725-775m Despite accelerated Adj. EBITDA investments in South Korea Clear focus on building a Free Cash Flow Positive s
Slide 37: 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 38: Table of contents
Table of contents 01 Trading Update 02 Annual Results 03 Case Studies 04 Outlook 05 Appendix 38
Slide 39: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2023 2024 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Delivery Hero Group GMV 11,198.9 11,083.8 22,282.7 11,693.4 11,299.1 45,275.2 11,789.3 % YoY Growth (RC) 1.5% 2.9% 2.2% 2.1% -0.5% 1.5% 5.3% % YoY Growth (CC) 2.1% 8.1% 5.1% 8.6% 3.3% 5.5% 8.9% GMV excl. HI adj. 12,288.4 47,631
Slide 40: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2023 2024 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Europe GMV 1,809.5 1,836.9 3,646.5 1,819.5 2,044.1 7,510.0 2,132.5 % YoY Growth (RC) 13.4% 15.0% 14.2% 13.4% 15.3% 14.3% 17.8% % YoY Growth (CC) 14.9% 17.0% 16.0% 15.3% 16.3% 15.9% 18.6% Segment Revenue 351.5 378.0 729.5 369.9
Slide 41: Powerful levers available for achieving long-term Gross Profit margin targets
Powerful levers available for achieving long-term Gross Profit margin targets Gross Profit to adj. EBITDA for the Group (as % of GMV): Q1 2023 to Q1 2024 1.1% 0.1% 0.4% 0.6% 0.0% 0.1% -1.8% 7.7% 7.1% -7.1% 0.6% Gross Profit Service fees Commission NCR Delivery Other fees Delivery Other costs Gross P
Slide 42: 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 43: 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 44: Hyperinflation accounting in Argentina and Turkey
Hyperinflation accounting in Argentina and Turkey Argentina Turkey Monthly CPI change Monthly de valuation EUR/ARS % Monthly CPI % Monthly de valuation EUR/TRY % 140% Q1 2024 30% Q1 2024 120% 25% 100% 20% 80% 15% 60% 10% 40% 5% 20% 0% 0% -5% Jan-23 Feb-23 Mar-23 Ap r-23 May-23 Jun- 23 Jul-23 Au g-23
Slide 45: 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 46: 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 47: Investor Relations Contact
Investor Relations Contact Christoph Bast Bruno Priuli Dennis Bader Laura Hecker Loredana Strîmbei Head of IR Director IR Director IR Senior Manager IR Specialist IR christoph.bast@deliveryhero.com bruno.priuli@deliveryhero.com dennis.bader@deliveryhero.com laura.hecker@deliveryhero.com loredana.str