Delivery Hero SE · XETR:DHER
Delivery Hero — Q2 2020 Earnings Presentation
34 slides from Delivery Hero's earnings presentation, Jul 28, 2020
Slide 1: Q2 2020 Trading Update
Q2 2020 Trading Update 28th July, 2020 Delivery Hero SE Q2 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 Q2 2020 Trading Update 2
Slide 3: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with the companies and trademarks shown in the above picture. Delivery Hero SE Q2 2020 Trading Update 3
Slide 4: Delivering On Our Promise
Delivering On Our Promise Growth as Build Invest for No. 1 Tech & Product Profitability Leadership Priority Leadership Drive profitability through >40% in short/mid-term Further strengthen our Invest in innovation to build scale and automation (2017 IPO target) position across the most a third gener
Slide 5: Leadership Position in >90% of Countries
Leadership Position in >90%1 of Countries Global Footprint: 43 Countries Europe MENA Greece South Korea Austria Bosnia & Bahrain Approval of Woowa Deal Herzegovina Hungary expected in H2 2020 Bulgaria Egypt Oman Montenegro Croatia Qatar Norway Jordan Japan Cyprus UAE Romania Saudi Arabia Launch of f
Slide 6: Q2 2020 Financial Highlights
Q2 2020 Financial Highlights 281 239 216 281m +95% 181 144 95 108 125 YoY 86 74 80 Growth 53 58 63 ORDERS Vs. Peer Average of 2017 2018 2019 2020 +1% YoY1 2.8 2.3 2.4 €2.8bn 2.0 1.3 1.5 1.7 +66% 1.1 0.9 1.0 1.0 YoY 0.7 0.7 0.8 GROSS MERCHANDISE Growth VALUE 2017 2018 2019 2020 612 515 483 €612m +96%
Slide 7: Update on COVID-19 Global Approach (1/2)
Update on COVID-19 Global Approach (1/2) Central approach tailored to local markets Government & Local Communities Customers ✓ Offering free phone ordering for elderly to give them access to ✓ Introducing features to encourage ordering after re-opening of safe food delivery restaurants (i.e. pickup
Slide 8: Update on COVID-19 Global Approach (2/2)
Update on COVID-19 Global Approach (2/2) Central approach tailored to local markets Riders Restaurants and Vendors ✓ Partnering with doctors to create interactive safety instructions ✓ Waiving sign-up fees to help restaurants and vendors onboarding ✓ Continuing to provide sanitizer, masks and safety
Slide 9: Q2 2020 Business Update
Q2 2020 Business Update Choice: Extensive & Growing Selection for Customers Globally • Now >630K restaurants making it the widest selection globally outside of China • Automated and contactless onboarding accelerating inventory growth to 114% YoY • Push notifications inform clients about favorite re
Slide 10: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with the companies and trademarks shown in the above picture. Delivery Hero SE Q2 2020 Trading Update 10
Slide 11: Pioneering in Quick Commerce
Pioneering in Quick Commerce The Age of Q-Commerce Has Arrived Untapping a Large and Underpenetrated Market 1st Generation 2nd Generation 3rd Generation Delivery Hero Q-Commerce Commerce E-Commerce Q-Commerce Present in 38 countries globally1 Self Delivery <1 Hour DH E-Commerce Market 2030 €659bn2 S
Slide 12: Two Pillars of Quick Commerce
Two Pillars of Quick Commerce Q-commerce 3rd Party Vendors Delivery Hero acts as Agent Delivery Hero acts as Principal Financial Revenues reported in platform Revenues reported in Integrated Reporting business (regional segments) Verticals (next to Kitchen business) 37 countries with multi-vertical
Slide 13: Illustration of the Dmart Concept
Illustration of the Dmart Concept Dmarts Use Delivery Hero’s Proprietary Technology Adapted for the Retail Environment CUSTOMER WAREHOUSE 2 Order received Food and groceries in Shop and order from one app for a better 1 more than ~3000 user experience and products little to none customer acquisition
Slide 14: Attractive Dmart Economics
Attractive Dmart Economics Illustrative Steady State Unit Economics Levers to Boost Long Term Dmart Economics Own-Delivery Dmart Platform Business Delivery Cost Basket Size €10.0 €10.0 Excl. VAT, included in Potential for reduced delivery Integrated Commission Rate 22.0% Verticals costs due to short
Slide 15: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with the companies and trademarks shown in the above picture. Delivery Hero SE Q2 2020 Trading Update 15
Slide 16: Q2 2020 Group
Q2 2020 Group Orders GMV Revenues2 • Superior YoY order growth of 95% vs. reported peer pro forma average of 1%1 +66% +64% • Sequential acceleration in orders and revenues after the easing of COVID-19 restrictions is offsetting 2.768 countries still experiencing restrictions • Share of own-delivery
Slide 17: COVID-19 Update Group Indexed Orders
COVID-19 Update Group • Orders are showing positive growth (+24% vs. March 11) after an initial decline from COVID-19 related lock-downs Orders • Order growth accelerated beyond pre-COVID levels in most countries as they are no 200 longer subject to curfews 180 160 Americas • Asia (+41% vs. March 11
Slide 18: Q2 2020 Asia Platform Business
Q2 2020 Asia Platform Business Orders GMV Revenues • Continued very strong order growth of 290% driven by early stage countries in APAC +166% +166% • Own-delivery at 76% of orders in Q2 2020 1.276 +234% +238% 280 +290% 479 157 83 40 Q2’19 Q2’20 Q2’19 Q2’20 Q2’19 Q2’20 All values in Unit million / €
Slide 19: Q2 2020 MENA Platform Business
Q2 2020 MENA Platform Business Orders GMV Revenues • -6% YoY growth reflecting ongoing strict measures implemented by governments reacting to COVID-19 +2% +1% • Approximately 40m orders lost during Q2 2020 due to restrictions linked to COVID-19 at above €1 822 profit contribution per order 814 • Own
Slide 20: Q2 2020 Europe Platform Business
Q2 2020 Europe Platform Business Orders GMV Revenues • Strongest order growth (47% YoY) since 2018 despite challenging environment +73% +69% • Own-delivery at 26% of orders in Q2 2020 420 +90% +84% 249 76 +47% 41 31 21 Q2’19 Q2’20 Q2’19 Q2’20 Q2’19 Q2’20 All values in Unit million / € million YoY gr
Slide 21: Q2 2020 Americas Platform Business
Q2 2020 Americas Platform Business Orders GMV Revenues • Sixth consecutive quarter with accelerated order growth – up 111% YoY in Q2 2020 +85% +75%1 • Own-delivery at 71% of orders in Q2 2020 249 +132%2 +119%1 143 57 +111% 27 26 13 Q2’19 Q2’20 Q2’19 Q2’20 Q2’19 Q2’20 All values in Unit million / € m
Slide 22: Q2 2020 Integrated Verticals
Q2 2020 Integrated Verticals Orders GMV Revenues • Integrated Verticals capture orders where Delivery Hero acts as a principal (Dmarts and & DH Kitchens1) • Rapid expansion of Dmarts contributing to GMV growth of 109% over Q1 2020 • 148 Dmarts in 11 regions at the end of June 2020 • 50K Dmart orders
Slide 23: Cash Position Evolution
Cash Position Evolution Equity Raise & Woowa Cash Cash & Convertible Net Cash & Net Cash & Convertible Net Cash & Component Liquid Assets Bond Liquid Liquid Assets1 Bond Liquid Assets1 Expected at Change1 July 2020 Assets1,2 January 2020 Closing3 €0.8bn +€2.3bn -€0.5bn €2.6bn +€1.5bn €4.1bn €1.7bn F
Slide 24: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook We are not affiliated, associated, authorized, endorsed by, or in any way officially connected with the companies and trademarks shown in the above picture. Delivery Hero SE Q2 2020 Trading Update 24
Slide 25: Outlook
Outlook 2020E Guidance: Revenues €2.6bn to €2.8bn €1.45bn Increased from: €2.4bn to €2.6bn Adjusted EBITDA -14% to -18% Plus additional investments of up to €150m Previously: Plus additional investments of up to €200m • Flexibility of additional investments of up to €150m (including €20m to €30m for
Slide 26: Appendix
APPENDIX Delivery Hero SE Q2 2020 Trading Update 26
Slide 27: 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 28: Attractive Portfolio of Minority Holdings
Attractive Portfolio of Minority Holdings Diversified Portfolio value portfolio of Top 3 holdings of minority minority stakes holdings1 >15 investments €0.9bn 1. Latest portfolio valuation of all minority interests (excluding Takeaway.com) as per Q2 2020 results Delivery Hero SE Q2 2020 Trading Upda
Slide 29: Adjustments
Adjustments Definition • The reported pro forma figures have been retrospectively adjusted for divestments of German operations – Figures have not been adjusted for other acquisitions or divestments that can be found in the table below • The strategic partnership with Woowa is not reflected in the f
Slide 30: 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 Q2 H1 Delivery Hero Group Orders 80.2 86.4 166.6 94.5 108.3 369.4 124.5 144.2 268.8 181.3 216 666.1 238.5 280.6 519.1 % 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% 94.5%
Slide 31: 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 Q2 H1 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 30.6 56.0 % 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% 47.4% 40.4% % OD Orders 6.1%
Slide 32: Delivery Hero Investor Relations Team
Delivery Hero Investor Relations Team Daniel Julia Caroline Fard-Yazdani Stoetzel Jabban Head of IR IR Director IR Associate daniel.fard-yazdani@deliveryhero.com julia.stoetzel@deliveryhero.com caroline.jabban@deliveryhero.com Team Contact T: +49 3054 4459 000 70 Oranienburger Straße 10117 Berlin Ge
Slide 33: Definitions
Definitions • Gross Merchandise Value (GMV) is the total value paid by customers (including VAT, delivery fees, service fees and other subsidies) • Revenues presented for Delivery Hero represent the total segment revenues prior to discounts • UTR (Utilization Rate) is defined as drops per hour per r
Slide 34: 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