Delivery Hero Se · XETR:DHER
Delivery Hero — Q3 2019 Earnings Presentation
29 slides from Delivery Hero's earnings presentation, Oct 31, 2019
Slide 1: Q3 2019 Trading Update
Q3 2019 Trading Update 31st October, 2019 Delivery Hero SE Q3 2019 Trading Update 1
Slide 2: Our Clear Vision
Our Clear Vision AMAZING FOOD AMAZING ORDERING Always delivering an amazing AMAZING SERVICE experience Delivery Hero SE Q3 2019 Trading Update 22
Slide 3: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook 5 Summary and Q&A Delivery Hero SE Q3 2019 Trading Update 3
Slide 4: Q3 2019 Financial Highlights
Q3 2019 Financial Highlights 181m €2.0bn GROSS MERCHANDISE €391m ORDERS REVENUES VALUE +92% +73% +117% YoY Growth YoY Growth YoY Growth All values in Unit million / € million and calculated on pro forma basis YoY GMV and revenue growth calculated on a constant currency pro forma basis Delivery Hero
Slide 5: Accelerated Topline Growth
Accelerated Topline Growth Orders GMV Revenues Superior growth vs. peer pro +92%2 +73%3 +117%3 forma average of 21%1: • Grubhub 10% • Just Eat 16% 181 391 1.972 • Takeaway 21% • Meituan 35% 1.684 144 315 1.508 125 267 1.323 108 1.120 219 95 1.041 86 971 80 908 176 74 802 155 740 63 681 138 58 126 53
Slide 6: Delivering on Our Promise
Delivering on Our Promise Guidance at IPO Status Growth as No.1 Priority Outperformance in Q3 with order and revenue growth of 92% and • >40% in short & mid-term 117% YoY respectively • >30% in the long-term Given stronger cohorts and superior returns expect to reinvest gains from outperformance and
Slide 7: Q3 2019 Business Update
Q3 2019 Business Update Expanded Restaurant Coverage For Better Quantity, Quality & Choice • Accelerated inventory growth by 82% YoY; now c. 390K restaurants • Improved customer selection with a diversified restaurant portfolio (only c. 4% orders generated by a single brand) Technology & Product Inn
Slide 8: Better Customer Experience Leads to Superior Cohort Characteristics
Better Customer Experience Leads to Superior Cohort Characteristics… MAJORITY OF ORDERS FROM RETURNING CUSTOMERS Total Orders per Cohort1 per Year Orders From 9M 2019 Cohort2 • Re-orders account for over 95% of Increasing orders First time Customer Orders Base From 2018 • Once acquired customers req
Slide 9: Driven by Higher Activity Rates
…Driven by Higher Activity Rates CUMULATIVE ORDER ACTIVITY 2015 2014 Cohort Cumulative Activity of Monthly Cohorts1 Cohort 2016 Cohort • Over time we see a strong uplift in 2017 activity rates2 Cohort • We expect activity rates to continue increasing with service 2018 improvements and introduction o
Slide 10: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook 5 Summary and Q&A Delivery Hero SE Q3 2019 Trading Update 10
Slide 11: Rapid Growth in Asia – Case Study APAC
I. Rapid Growth in Asia – Case Study APAC Focus on Execution Propelled Hyper Growth Market 1 APAC1 – ORDER DEVELOPMENT INCREASED VARIETY VIA EXPANDED RESTAURANT COVERAGE • Restaurant inventory expansion by +53K • Broadened assortment of popular meal options • Added mix of global and local favourite
Slide 12: Profitable Own-Delivery – Case Study Saudi Arabia
II. Profitable Own-Delivery – Case Study Saudi Arabia 4,0 20 Profit Contribution Orders per Quarter 3,5 per Order (€) 18 3,0 16 • Since management and logistics overhaul in Q2 2019, KSA 2,5 14 operations achieved - Higher profit contribution per 2,0 12 order for own delivery relative Improved unit t
Slide 13: Positive EBITDA Markets Account for 50% of Group GMV
III. Positive EBITDA Markets Account for 50% of Group GMV • Significantly increased profitability in “at scale markets” At Scale Profitable Markets: - Delivery Hero markets constituting 50% of GMV 50% of GMV already reached scale and profitability - Best in class markets achieve >50% EBITDA margin a
Slide 14: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook 5 Summary and Q&A Delivery Hero SE Q3 2019 Trading Update 14
Slide 15: Q3 2019 Group Performance
Q3 2019 Group Performance Orders GMV Revenues +73% • 117% revenue growth YoY driven +117% by strong performance across all +76% segments +122% 1,972 • Own-delivery orders at 40% of 391 total orders driven by greater customer demand and city expansion +92% 1,120 • Group take rate excluding own- 181 d
Slide 16: Q3 2019 MENA Performance
Q3 2019 MENA Performance Orders GMV Revenues +62% +69% +118% 928 +127% 193 +58%1 • Continued strong order and 550 revenue progression with 58% 77 YoY and 118% YoY growth rates respectively1 85 49 • Own-delivery at 32% of orders • Generating significant EBITDA contribution to the group Q3’18 Q3’19 Q3
Slide 17: Q3 2019 Europe Performance
Q3 2019 Europe Performance Orders GMV Revenues +49% +48% +56% +55% 258 • Strong order growth of 45% YoY 43 - Fastest growing European food delivery business amongst 175 publicly listed European peers1 +45% with EBITDA at break-even2 28 - Now leading in 13 out of 14 21 markets 14 • Own-delivery at 15
Slide 18: Q3 2019 Asia Performance
Q3 2019 Asia Performance Orders GMV Revenues +107% +106% +146% 654 +149% • Marked step change in order 126 growth to 212% YoY in Q3 2019 from 115% YoY in Q2 2019 driven by +212% - Targeted customer acquisition 68 317 - City coverage expansion - Improved customer experience through faster and more re
Slide 19: Q3 2019 Americas Performance
Q3 2019 Americas Performance Orders GMV Revenues • Significant acceleration in order growth of 62% YoY with a potential for further upside - 76% YoY pro forma growth1 if adjusted for divestments +71%3 +127%3 • Own-delivery at 49% of total +68%2 orders +125%2 131 28 • Revenues and GMV are impacted +6
Slide 20: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook 5 Summary and Q&A Delivery Hero SE Q3 2019 Trading Update 20
Slide 21: Outlook 2019
Outlook 2019 2019E Guidance: Revenues €1.44bn to €1.48bn €1.45bn Increased from “top of guidance range of €1.3 to 1.4bn” Adjusted EBITDA -€370m to -€420m Expect to be close to the lower end of the guidance range1 • The Europe segment is expected to reach adjusted EBITDA breakeven during Q4 2019 • ME
Slide 22: Agenda
Agenda 1 Business Update 2 Case Studies 3 Financial Update 4 Outlook 5 Summary and Q&A Delivery Hero SE Q3 2019 Trading Update 22
Slide 23: Delivery Hero at a Glance: Best-in-class Performance and Global Leadership
Delivery Hero at a Glance: Best-in-class Performance and Global Leadership Scale Leadership Technology 70m 34 18 70m orders per month Gained leadership in Markets with multi- in October 2019 one additional market vertical delivery growing 100% YoY platform rolled out Growth Unit Economics Profitabil
Slide 24: Appendix
APPENDIX Delivery Hero SE Q3 2019 Trading Update 24
Slide 25: Adjustments / Pro Forma
Adjustments / Pro Forma • Definitions • The reported pro forma figures have been retrospectively adjusted for divestments of foodora non-core assets i.e. Australia, France, Italy & Netherlands and Germany • Figures have not been adjusted for other acquisitions or divestments that can be found in the
Slide 26: Delivery Hero KPIs (1/2)
Delivery Hero KPIs (1/2) 2018 2019 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Delivery Hero Group Orders 80.2 86.4 166.6 94.5 108.3 369.4 124.5 144.2 268.8 181.3 % YoY Growth 51.8% 48.3% 50.0% 49.0% 46.7% 48.8% 55.2% 67.0% 61.4% 91.8% % OD Orders 10.2% 11.9% 11.1% 16.4% 19.5% 14.9% 25.0% 29.9% 27.6% 40.4%
Slide 27: Delivery Hero KPIs (2/2)
Delivery Hero KPIs (2/2) 2018 2019 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 Asia Orders 17.6 18.7 36.3 21.9 24.4 82.6 30.4 40.2 70.6 68.1 % YoY Growth 53.8% 46.9% 50.2% 50.6% 48.6% 49.8% 73.0% 114.8% 94.6% 211.6% % OD Orders 19.4% 21.8% 20.6% 25.7% 27.5% 24.0% 29.3% 38.8% 34.7% 54.6% GMV 261.7 280.0 541.
Slide 28: Definitions
Definitions • Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants • Revenues presented for Delivery Hero represent the total segment revenues prior to discounts. • Net Revenue defined as gross revenues (before subtraction of vouchers) minus delivery
Slide 29: 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