Delivery Hero Se · XETR:DHER
Delivery Hero — Investor Presentation (April 2024)
51 slides from Delivery Hero's investor presentation, April 2024
Slide 1: Company Presentation
Company Presentation April 2024
Slide 2: Table of contents
Table of contents 01 Key Investment Highlights 02 Overview 03 Business Model 04 Long-term Value Creation 05 Path to Profitability 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 Attractive mix of Food Delivery, Quick Commerce generating higher GMV over time. Newly
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 >45k employees Americas Europe MENA Asia Integrated Verticals globally 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 #1 (~2.1bn people) #1 Northern, Eastern & Asia (excl. China) Southern Europe #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 Enjoy delivery 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 technology designed for 1. from ~6,
Slide 14: Our main business lines generate similarly attractive levels of gross profit
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 10% § Gross Profit margin of the Platform business increased by 250 bps since Q1 2022 to close to
Slide 16: Long-term Value Creation
Long-term Value Creation 16
Slide 17: Global leadership, additional revenue opportunities and clear 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 18: 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 Improvement over the years o
Slide 19: Achieving our long-term target of >€200bn requires lower order density than 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 20: We have built a global footprint and leading positions across the world
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 73 12 10 36 15 #1 positions1 54 8 10 23 13 Total population 2.1bn 795m 311m 778m 231m 5% 17% % GMV FY23
Slide 21: 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 ~20 ~0.7 ~8 #2 #3 #4 #5 #2 #3 #4 #5 #2 #3 #4 #5 We are the glob
Slide 22: 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 Massive market opportunity at scale More new customers and higher Higher network density with penetra
Slide 23: 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 24: 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 25: 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 26: Path to profitability
Path to profitability 1) Profitable Platform business 2) Unprofitable Platform business 3) Integrated Verticals 26
Slide 27: Profitable Platform business considerably grew adj. EBITDA in FY 2023
Highlights Overview Business Model Value Creation Profitability Outlook ESG 1 Profitable Platform business considerably grew adj. EBITDA in FY 2023 Adj. EBITDA in the profitable Platform1 business FY 2023 and beyond § Achieved an adj. EBITDA run-rate +37% of >€1.3bn in Q4 2023, driven primarily by a
Slide 28: Reduction of negative adj. EBITDA contribution tracking ahead of target
Highlights Overview Business Model Value Creation Profitability Outlook ESG 2 Reduction of negative adj. EBITDA contribution tracking ahead of target Adj. EBITDA (in €m) for the unprofitable Platform business1 Comment Adj. EBITDA/GMV margin Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
Slide 29: Integrated Verticals delivered on guided adj. EBITDA improvement
Highlights Overview Business Model Value Creation Profitability Outlook ESG 3 Integrated Verticals delivered on the guided adj. EBITDA improvement while considerably growing GMV GMV (in €m) Adj. EBITDA margin (as % of GMV) +24% 636 650 589 -5.3% 538 522 -17.7% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'
Slide 30: Outlook
Outlook 30
Slide 31: Outlook for Delivery Hero Group in FY 2024
Highlights Overview Business Model Value Creation Profitability Outlook ESG Outlook for Delivery Hero Group in FY 2024 GMV 7-9% YoY Total Segment Gross Profit to exceed Revenue 15-17% YoY revenue growth as margins continue to expand Adj. EBITDA €725-775m Clear focus on building a Free Cash Flow Posi
Slide 32: 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): Q1 2022 to Q1 2023 0.2% 0.1% Best-in-class 0.5% 0.3% 0.2% markets ~3% at 0.4% high scale 0.4% 7.1% 5
Slide 33: 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 Long-term (in % of GMV) FY 2022 FY 2023 FY 2024e Comments range § Driven by pricing, advertising, order stacking and Gross Profit 6.0% 7.4% Improve 10% to 13% improv
Slide 34: Our long-term ambitions
Highlights Overview Business Model Value Creation Profitability Outlook ESG Our long-term ambitions 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 GM
Slide 35: Snapshot on ESG
Snapshot on ESG 35
Slide 36: 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 PLASTIC & RIDER & WORKER SOCIAL IMPACT PACKAGING WELFARE Reducing carbon Add
Slide 37: 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 Greenhouse Gases § Through our new climate action strategy, we intend to Reducing emissions and promoting sustainable practices in
Slide 38: 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 safe § Delivery Hero provides employment opportunities in over while they work is
Slide 39: 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 40: 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 41: Appendix
Appendix 41
Slide 42: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2022 2023 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Q4 FY Delivery Hero Group GMV 11.035.4 10.776.0 21.811.4 11.449.4 11.353.7 44.614.5 11.198.9 11.083.8 22.282.7 11.693.4 11.299.1 45.275.2 % YoY Growth (RC) 32.1% 19.8% 25.8% 12.3% 8.8% 17.5% 1.5% 2.9% 2.2% 2.1% -0.5% 1
Slide 43: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2022 2023 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Q4 FY Europe GMV 1.596.1 1.596.7 3.192.9 1.604.7 1.772.8 6.570.4 1.809.5 1.836.9 3.646.5 1.819.5 2.044.1 7.510.0 % YoY Growth (RC) 26.2% 20.9% 23.5% 27.3% 17.7% 22.7% 13.4% 15.0% 14.2% 13.4% 15.3% 14.3% % YoY Growth (C
Slide 44: 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 45: Hyperinflation accounting in Argentina and Turkey
Hyperinflation accounting in Argentina and Turkey Argentina Turkey Mo nth ly CPI ch ange Mo nth ly devaluation EUR/ARS % Mo nth ly CPI % Mo nth ly devaluation EUR/TRY % 140% Q4 2023 30% Q4 2023 120% 25% 100% 20% 80% 15% 60% 10% 40% 5% 20% 0% 0% -5% -20% Jan-23 Feb-23 Ma r-23 Apr-23 Ma y-23 Jun-23 Ju
Slide 46: Ample liquidity position combined with a balanced debt maturity profile
Ample liquidity position combined with a balanced debt maturity profile Liquidity (€bn) Debt maturity profile (€m) Comment § €4.4bn in outstanding convertible bonds, at a weighted average coupon of 1.7% (0.875% to 3.25% range) § $825m and €300m term loan with margin of SOFR / Euribor + 5.75% § Undra
Slide 47: Organic cash flow generation comfortably exceeds upcoming maturities
Organic cash flow generation comfortably exceeds upcoming maturities € million (287) (500) (750) Repaid (875) (1,032) 5,084 (750) -2,550 Cash Levered Free Cash Convertible Convertible Convertible Convertible TLB FY’27 Convertible Cash beginning Flow Projection Bond FY’24 Bond FY’25 Bond FY’26 Bond F
Slide 48: Update on Spanish rider liabilities
Update on Spanish rider liabilities § Glovo launched in Spain in 2015. At this point there were no clear requirements for operating a freelancer model. Several lower instance courts had validated Glovo´s freelancer model (SLOT) and all major platforms (Uber, Deliveroo and Glovo) operated the SLOT fr
Slide 49: 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 50: 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 51: 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