Delivery Hero SE · XETR:DHER
Delivery Hero — Q3 2022 Earnings Presentation
34 slides from Delivery Hero's earnings presentation, Nov 10, 2022
Slide 1: Q3 2022 Trading Update
Q3 2022 Trading Update 10 November 2022
Slide 2: Table of contents
Table of contents 01 Overview 02 Financial Update 03 Path to Profitability 04 Outlook 05 Appendix 2
Slide 3: Our Vision
OUR VISION Always delivering an amazing experience Fast, easy, and to your door Delivery Hero SE This document is strictly confidential and may not be copied, used, made available or be disclosed to third parties without prior written permission.
Slide 4: Successful closing of Glovo transaction further strengthens our global leadership position
Successful closing of Glovo transaction further strengthens our global leadership position in food delivery and quick commerce #1 Global Coverage #1 (~2.2bn people) #1 Northern, Eastern & Asia (excl. China) Southern Europe #1 #1 South & Central Quick America Commerce (excl. Brazil) #1 MENA 4
Slide 5: Table of contents
Table of contents 01 Overview 02 Financial Update 03 Path to Profitability 04 Outlook 05 Appendix 5
Slide 6: Q3 2022 key highlights
Q3 2022 key highlights Maintained healthy GMV growth of 12% YoY despite difficult COVID comps. All segments outside Asia combined grew by >30% YoY in Q3 2022 AdTech1 revenue growing ∼70% YoY and on path to generate >€2bn in FY24/25 Strong cost control and execution on profitability levers leading to
Slide 7: Healthy Group GMV and revenue growth continues in Q3 2022
Healthy Group GMV and revenue growth continues in Q3 2022 Incl. Glovo 11.45 since Q1’21 11.0 10.8 10.4 GMV (€bn) 10.2 9.0 +12% 8.4 7.0 5.8 4.8 3.8 4.2 GMV growth YoY (RC) 2.9 3.3 2.3 2.6 1.6 1.8 2.0 +8%2 YoY (CC) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2018 2019 2020 2021 2022 2.5 2.3 Total
Slide 8: Stable cohort behavior in a post-pandemic environment
Stable cohort behavior in a post-pandemic environment Average monthly order frequency Expected real GDP growth in 20231 2.4% Pre-COVID COVID Post-COVID 4.8x 3.8x 1.0% 0.5% 0.3% U.S. Euro U.K. DH Top 15 Sep-19 Sep-20 Sep-21 Sep-22 DH Top 15 May-19 May-20 May-21 May-22 Mar-19 Nov-19 Mar-20 Nov-20 Mar-
Slide 9: Q3 2022 Asia Platform business
Q3 2022 Asia Platform business COVID boost GMV (€bn) in APAC +2% -1% Key Highlights 6.9 6.8 6.7 6.5 6.5 5.6 § Difficult comparable numbers for Asia 5.1 due to COVID boost in Q3 2021 and focus 4.7 on profitability. GMV in Korea grew 6% 3.9 QoQ in Q3 2022 despite unfavorable 3.3 2.8 weather 1 2 3 4 5
Slide 10: Q3 2022 MENA Platform business
Q3 2022 MENA Platform business GMV (€bn) +28% +14%1 Key Highlights 2.3 2.0 1.9 1.8 1.8 § Strong GMV trajectory driven by higher 1.5 1.6 volume, growing baskets and Turkey back 1.4 to sequential growth 1.2 1.0 0.8 § Advertising revenues further developed in the region. The best-in-class country 1 2 3
Slide 11: Q3 2022 Europe Platform business (incl. Glovo pro-forma)
Q3 2022 Europe Platform business (incl. Glovo on a pro-forma basis)1 GMV (€bn) +27% +28% Key Highlights 1.6 1.6 1.6 1.5 § Europe excl. Glovo accelerated GMV 1.3 growth to 13% YoY in Q3 2022 1.3 1.3 § Glovo grew GMV by 40% YoY while improving adj. EBITDA in Q3 2022 1 2 2021 3 4 5 6 2022 7 § Advertisi
Slide 12: Q3 2022 Americas Platform business
Q3 2022 Americas Platform business +52% +44% GMV (€m) Key Highlights 780 674 560 558 § Strong GMV growth due to continued 513 464 AOV expansion, enhanced customer 420 364 targeting and solid volume development 301 249 162 § Service fee recently launched in Argentina and currently being tested in 5 m
Slide 13: Q3 2022 Integrated Verticals (incl. Glovo pro-forma)
Q3 2022 Integrated Verticals (incl. Glovo on a pro-forma basis)1 GMV (€m) +55% +45% Key Highlights 496 461 430 363 § GMV grew 55% YoY despite slowdown of 321 store expansion and increased focus on 261 profitability 199 149 72 104 § Average order value grew considerably 46 in Q3 2022 due to basket si
Slide 14: Fully loaded contribution margin on a new record high
Fully loaded contribution margin on a new record high Contribution margin1 of own-delivery (after voucher costs2) as % of GMV Values including Woowa since Q1 2022 and excl. Delivery Hero Korea & Glovo Key Highlights 10% § Constant improvement in profitability results in new record 5% high of fully l
Slide 15: Table of contents
Table of contents 01 Overview 02 Financial Update 03 Path to Profitability 04 Outlook 05 Appendix 15
Slide 16: Path to profitability
Path to profitability § Profitable Platform business § Unprofitable Platform business § Integrated Verticals § Group
Slide 17: On track to reach €1bn adj. EBITDA run-rate in Q4 2022
On track to reach € 1bn adj. EBITDA run-rate in Q4 2022 Adj. EBITDA (in €m) for the profitable Platform business1 Comments Adj. EBITDA/GMV margin 100.0 Adj. EBITDA exceeding 5% previous guidance § Adj. EBITDA for the profitable 90.0 by €40m Platform countries grew 80.0 4% materially faster than expe
Slide 18: Robust outlook for profitable Platform business
Robust outlook for profitable Platform business Adj. EBITDA in the profitable Platform1 business 2023 and beyond 1 Continued EBITDA expansion of existing profitable countries from today‘s >10 § Adj. EBITDA run-rate of our 2 Addition of 2-4 profitable Glovo countries profitable Platform business expe
Slide 19: Path to profitability
Path to profitability § Profitable Platform business § Unprofitable Platform business § Integrated Verticals § Group
Slide 20: Constant reduction of negative adj. EBITDA contribution
Constant reduction of negative adj. EBITDA contribution 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 Q4'22E Q1'23E Q2'23E Q3'23E Q4'23E § Significant improvement in adj. EBITDA as markets scale. Adj. EBITDA margi
Slide 21: Decomposing our long-term margin targets
Decomposing our long-term margin targets Q3 2022 figures Profitable Unprofitable (in % of GMV) Long-term range Comments countries countries § Unprofitable countries are mostly early stage with >10x growth opportunity GMV (€) c.7bn c.4bn - § Size of opportunity much larger in unprofitable countries,
Slide 22: Path to profitability
Path to profitability § Profitable Platform business § Unprofitable Platform business § Integrated Verticals § Group
Slide 23: Dmarts continue to improve their profitability, trending towards break-even
Dmarts continue to improve their profitability, trending towards break-even GMV (in €m) Gross Profit (in €m) Gross Profit margin as % of GMV +46% 436 (4.1)% 380 344 (9.9)% 330 298 (11.3)% (14.4)% (18.5)% +10pp Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 § Dmarts represent ~75% of los
Slide 24: Path to profitability
Path to profitability § Profitable Platform business § Unprofitable Platform business § Integrated Verticals § Group
Slide 25: Material earnings improvement ahead
Material earnings improvement ahead Adj. EBITDA (€m) on Group level (incl. Glovo)1 FY 2023 Group ambition Adj. EBITDA/GMV margin Profitable Platform business with adj. -3.2% -2.4% -2.1% H2’22: ∼ -0.7% 1 EBITDA run-rate ∼€1.0bn in Q4 2022 growing >25% until Q4 2023 Negative adj. EBITDA margin from 2
Slide 26: Table of contents
Table of contents 01 Overview 02 Financial Update 03 Path to Profitability 04 Outlook 05 Appendix 26
Slide 27: Updated outlook for FY 2022
Updated outlook for FY 2022 Updated guidance FY 2022 Previous guidance FY 2022 Delivery Hero Delivery Hero incl. Glovo1 incl. Glovo1 Lower end of GMV GMV €44.7bn to €46.9bn €44.7bn to €46.9bn Totalsegment Total Segment Lower end of €9.8bn to €10.4bn Revenue revenue €9.8bn to €10.4bn -1.4% to -1.5% -
Slide 28: Confirming our 2030 ambitions
Confirming our 2030 ambitions Growth Leadership Innovation Profitability Achieve €200bn to #1 player in #1 preferred Achieve 5-8% adj. €350bn GMV by 2030 all markets1 delivery app1 EBITDA/GMV margin2 By 2030, we plan to grow our GMV substantially, invest in tech & innovation to further expand our le
Slide 29: Table of contents
Table of contents 01 Overview 02 Financial Update 03 Path to Profitability 04 Outlook 05 Appendix 29
Slide 30: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2021 2022 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Delivery Hero Group GMV 8.352.7 8.992.3 17.345.0 10.197.9 10.433.9 37.976.9 11.035.3 10.776.3 21.811.6 11.449.4 % YoY Growth (RC) - - - - - - 32.1% 19.8% 25.8% 12.3% % YoY Growth (CC) - - - - - - - - - 7.6% Total Segme
Slide 31: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2021 2022 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Europe GMV 1.265.5 1.322.2 2.587.6 1.261.2 1.507.3 5.356.2 1.596.0 1.597.1 3.193.1 1.604.7 % YoY Growth (RC) - - - - - - 26.1% 20.8% 23.4% 27.2% % YoY Growth (CC) - - - - - - - - - 27.9% Segment Revenue 282.6 302.8 585
Slide 32: 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 effect
Slide 33: 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 34: 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 Senior Executive Assistant [email protected] [email protected] [email protected] [email protected]