Delivery Hero Se · XETR:DHER
Delivery Hero — Investor Presentation (September 2024)
54 slides from Delivery Hero's investor presentation, September 2024
Slide 1: Company Presentation September 2024
Company Presentation September 2024
Slide 2: Table of contents
Table of contents 01 Key Investment Highlights 02 Overview 03 Business Model 04 Long-term Value Creation 05 Profitability path 06 Outlook 07 Snapshot on ESG 2
Slide 3: Key Investment Highlights
Key Investment Highlights 3
Slide 4: Delivery Hero: Key Investment Highlights
Highlights Overview Business Model Value Creation Profitability Outlook ESG Delivery Hero: Key Investment Highlights Highly attractive cohort model Multi-category service Business based on stable customer cohorts generating higher Attractive mix of Food Delivery, Quick Commerce and Deliver GMV over
Slide 5: Overview
Overview 5
Slide 6: Delivery Hero at a glance
Highlights Overview Business Model Value Creation Profitability Outlook ESG Delivery Hero at a glance Introduction to Delivery Hero Diversified brand portfolio Corporate group: Headquartered in Berlin, Germany, with >47k Americas Europe MENA Asia Integrated employees globally Verticals 27% Operation
Slide 7: Our journey to the world's largest local delivery business
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our journey to the world’s largest local delivery business Positive adj. acquisition EBITDA Gross Merchandise Value (“GMV”) (€bn) acquisition and milestone disposal of (>€250m) Acquisition of Opening of its 1,000th DAX entry
Slide 8: Global leader in food delivery and quick commerce
Highlights Overview Business Model Value Creation Profitability Outlook ESG Global leader in food delivery and quick commerce #1 Global Coverage (>2bn people) #1 #1 Northern, Eastern Asia & Southern Europe (excl. China) #1 #1 South & Central Quick America Commerce (excl. Brazil) #1 MENA 8
Slide 9: Business Model
Business Model 9
Slide 10: Our global delivery business is based on three pillars
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our global delivery business is based on three pillars PLATFORM OWN QUICK DELIVERY COMMERCE If you are interested in a Our ecosystem deep-dive into Quick Commerce, please listen to We work with a large global ecosystem of
Slide 11: Our Platform business
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our Platform business Customer Vendor 1. 2. 3. 4. Cook / Pick Search Order Receive Delivery Hero provides delivery Own Delivery 5. Deliver 6. Marketplace Eat / Vendor provides delivery Enjoy 11
Slide 12: The two pillars of Quick Commerce
Highlights Overview Business Model Value Creation Profitability Outlook ESG The two pillars of Quick Commerce Quick Commerce 3rd Party Vendors (Shops) Delivery Hero acts as Agent Delivery Hero acts as Principal Financial Reporting Revenues reported in Platform business Revenues reported in Integrate
Slide 13: Our Dmart concept
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our Dmart concept Customer warehouses Customers only need one app – fully integrated with platform offering 2. Order received Orders transmitted and picked using proprietary Shop and order 1. from ~6,000 Food and groceries i
Slide 14: Our main business lines generate similarly attractive gross profits
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our main business lines generates similarly attractive level of gross profits Integrated Reporting lines Platform Verticals Nov-2023 ex-Woowa Best-in-class Marketplace Own delivery Unit Economics (€ per order) Dmarts2 AOV /
Slide 15: Gross Profit margin development within the Platform business
Highlights Overview Business Model Value Creation Profitability Outlook ESG 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 10% business stable at 7.6% in Q2 ‘24. Further margin ex
Slide 16: Combining central services with strong local execution
Highlights Overview Business Model Value Creation Profitability Outlook ESG 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 ● Interna
Slide 17: Long-term Value Creation
Long-term Value Creation 17
Slide 18: Global leadership, additional revenue opportunities and focus on profitability
Highlights Overview Business Model Value Creation Profitability Outlook ESG Global leadership, additional revenue opportunities and clear focus on profitability to drive shareholder value Business model based on highly attractive cohorts 1 Existing cohorts generate higher GMV over time. Newly acquir
Slide 19: Our business model is based on highly attractive cohorts
Highlights Overview Business Model Value Creation Profitability Outlook ESG 1 Our business model is based on highly attractive cohorts Total GMV per cohort per year Monthly average order frequency GMV from cohorts (€m), Multiple indicates GMV growth within cohort vs. GMV of Improvement over the year
Slide 20: Achieving >€200bn target requires order density below Top 8 markets
Highlights Overview Business Model Value Creation Profitability Outlook ESG 2 Achieving our long-term target of >€200bn requires order density below that of our Top 8 markets* Average monthly orders per capita (x) Comments Top 8 markets* Tail markets* approx. two-thirds of FY23a GMV approx. one-thir
Slide 21: We have built a global footprint and leading positions
Highlights Overview Business Model Value Creation Profitability Outlook ESG 3 We have built a global footprint and leading positions across the world Asia MENA Europe2 Americas Globally Countries 72 12 10 35 15 #1 positions1 54 8 10 23 13 Total population 2.1bn 795m 311m 778m 231m 5% 17% % GMV FY23
Slide 22: Our unmatched global scale is one of our key competitive moats
Highlights Overview Business Model Value Creation Profitability Outlook ESG 3 Our unmatched global scale is one of our key competitive moats Countries served Population coverage Orders (#) (#bn) 73 2.1 ~1.6x ~2.5x ~1.3 ~29 ~27 ~0.8 ~0.8 ~0.7 ~20 ~8 #2 #3 #4 #5 #2 #3 #4 #5 #2 #3 #4 #5 We are the glob
Slide 23: Quick Commerce: complementary and synergetic to the overall business
Highlights Overview Business Model Value Creation Profitability Outlook ESG 4 Quick Commerce: complementary and synergetic to the overall business Growth Profitability Significant profit opportunity at Massive market opportunity scale More new customers and higher Higher network density with penetra
Slide 24: Advertising products to provide new earnings opportunity
Highlights Overview Business Model Value Creation Profitability Outlook ESG 5 Advertising products to provide new earnings opportunity CPC Joker We have a rich portfolio of advertising products Cost-per-click (CPC): various premium listing options to increase restaurant visibility on the platform. A
Slide 25: Advertising business already generating significant earnings
Highlights Overview Business Model Value Creation Profitability Outlook ESG 5 Advertising business already generating significant earnings Advertising revenue (in €m)1 Long-term target 3-5% of GMV >2,000 >€1.0bn Advertising products help vendors to increase run-rate in Q4 2023 awareness, acquire new
Slide 26: Strong earnings trajectory and further margin expansion in 2024
Highlights Overview Business Model Value Creation Profitability Outlook ESG 6 Strong earnings trajectory and further margin expansion in 2024 Adj. EBITDA on Group level (in €m) Comments Adj. EBITDA/GMV margin (2.9%) (1.4%) 0.6% ~1.6%1 We will continue to focus on growth and strengthening our opera
Slide 27: Profitability path
Profitability path 27
Slide 28: Strong progress on profitability expected in FY 2024
Highlights Overview Business Model Value Creation Profitability Outlook ESG 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. EBIT
Slide 29: Glovo expected to deliver strong GMV growth and adj. EBITDA break-even
Highlights Overview Business Model Value Creation Profitability Outlook ESG Glovo expected to deliver strong GMV growth and adj. EBITDA break-even 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
Slide 30: Rationalization and optimization of Dmarts
Highlights Overview Business Model Value Creation Profitability Outlook ESG Rationalization and optimization of Dmarts leading to significant financial improvements Comprehensive footprint Deep operational Rapid financial improvement rationalization optimization Footprint reduced to focus Multiple t
Slide 31: Dmarts: Best performing country highly profitable and cash-generative
Highlights Overview Business Model Value Creation Profitability Outlook ESG Dmarts: 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 tripl
Slide 32: Significant earnings growth and positive operating cash flow
Highlights Overview Business Model Value Creation Profitability Outlook ESG Significant earnings growth and positive operating cash flow GMV(€bn) Total Segment Revenue (€bn) 6% 19% 22.3 23.7 6.0 5.1 H1 ’23 H1 ’24 H1 ’23 H1 ’24 Adj. EBITDA (€m) Operating Cash Flow1 (€m) Cashflow uplift of €280m 103 2
Slide 33: Free Cash Flow break-even already reached in H1 2024
Highlights Overview Business Model Value Creation Profitability Outlook ESG Free Cash Flow1 break-even already reached in H1 2024 (in €m) H1 2023 H1 2024 GMV 22,283 23,687 Adj. EBITDA 9 240 % GMV 0.0% 1.0% Capex (114) (135) % GMV -0.5% -0.6% Lease payments (IFRS16) (73) (74) % GMV -0.3% -0.3% Positi
Slide 34: Outlook
Outlook 34
Slide 35: Delivery Hero Group confirms outlook for FY 2024
Highlights Overview Business Model Value Creation Profitability Outlook ESG Delivery Hero Group confirms outlook for FY 2024 Gross Profit to exceed GMV 7-9% YoY GMV growth as margins continue to expand Total Segment Revenue 18-21% YoY €725-775m Despite accelerated Adj. EBITDA investments in South Ko
Slide 36: Strong progress on Gross Profit margin despite moderate GMV growth
Highlights Overview Business Model Value Creation Profitability Outlook ESG Strong progress on Gross Profit margin despite moderate GMV growth Gross Profit to adj. EBITDA for the Group (as % of GMV): FY 2022 to FY 2023 Best-in-class markets ~3% at high scale Gross Profit to adj. EBITDA for the Group
Slide 37: Very attractive long-term margins and high cash conversion
Highlights Overview Business Model Value Creation Profitability Outlook ESG 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 pro
Slide 38: Organic cash flow generation comfortably exceeds upcoming maturities
Highlights Overview Business Model Value Creation Profitability Outlook ESG Organic cash flow generation comfortably exceeds upcoming maturities € million Reached FCF break-even in H1 2024 and are fully on track to deliver a positive FCF in FY 2024 and substantial cash flows in the next years Th
Slide 39: Long-term ambitions confirmed
Highlights Overview Business Model Value Creation Profitability Outlook ESG 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
Slide 40: Snapshot on ESG
Snapshot on ESG 40
Slide 41: Fostering enduring economic, social and environmental conditions
Highlights Overview Business Model Value Creation Profitability Outlook ESG We want to foster enduring economic, social and environmental conditions for present and future generations Our strategic priorities CLIMATE ACTION GOVERNANCE RIDER & WORKER SOCIAL IMPACT WELFARE Reducing carbon Elevate non-
Slide 42: Committed to minimizing the environmental impact of our business
Highlights Overview Business Model Value Creation Profitability Outlook ESG We are committed to minimizing the environmental impact of our business Climate & Environment Emissions in 20231 Reducing emissions and promoting sustainable practices within our ecosystem are an important part of our ambiti
Slide 43: Creating positive working opportunities for millions globally
Highlights Overview Business Model Value Creation Profitability Outlook ESG Creating positive working opportunities for millions globally Rider Welfare Workforce Riders are at the core of our business and keeping them Delivery Hero provides employment opportunities in safe while they work is our p
Slide 44: Fair business conduct, data protection and food safety
Highlights Overview Business Model Value Creation Profitability Outlook ESG We believe that fair business conduct, data protection and food safety are essential for our integrity and long-term success Responsible Governance and Ethics ESG Compensation Targets We act within a framework of ethics and
Slide 45: Upcoming European CSRD reporting
Highlights Overview Business Model Value Creation Profitability Outlook ESG Upcoming European CSRD reporting to drive data integrity and disclosure Overview of CSRD regulation Topics expected to be material for DH2 In November 2022, the European Parliament adopted the Corporate Sustainability Repo
Slide 46: Appendix
Appendix 46
Slide 47: 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 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 11,898.0 23,687.4 % YoY Growth (RC) 1.5% 2.9% 2.2% 2.1% -0.5% 1.5% 5.3% 7.3% 6.3% % YoY Growth (CC) 2.1% 8.1% 5.1% 8.6% 3.3% 5.5% 8.9%
Slide 48: 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 Europe GMV 1,809.5 1,836.9 3,646.5 1,819.5 2,044.1 7,510.0 2,132.5 2,177.1 4,309.6 % YoY Growth (RC) 13.4% 15.0% 14.2% 13.4% 15.3% 14.3% 17.8% 18.5% 18.2% % YoY Growth (CC) 14.9% 17.0% 16.0% 15.3% 16.3% 15.9% 18.6% 19.3%
Slide 49: 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 50: 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% Q2 2024 30% Q2 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 51: Ample liquidity position with balanced debt maturity profile
Ample liquidity position combined with a balanced debt maturity profile Cash (€m) Debt maturity profile (€m) Comment €1.8bn in cash post recent refinancing, minority disposal, convertible repayments and equity raise (Uber investment) 1,8051 €3.8bn in outstanding convert. bonds, at a weighted ave
Slide 52: 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 53: 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 54: Investor Relations Contact
Investor Relations Contact Christoph Bast Bruno Priuli Lukas Herzog Loredana Strîmbei Head of IR Director IR Manager IR Specialist IR christoph.bast@deliveryhero.com bruno.priuli@deliveryhero.com Lukas.herzog@deliveryhero.com loredana.strimbei@deliveryhero.com ir@deliveryhero.com T: +49 (0)30 54 445
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