Delivery Hero Se · XETR:DHER
Delivery Hero — Investor Presentation (May 2023)
44 slides from Delivery Hero's investor presentation, May 2023
Slide 1: Company Presentation
Company Presentation May 2023
Slide 2: Table of contents
Table of contents 01 Overview 02 Business Model 03 Long-term Value Creation 04 Path to Profitability 05 Outlook 06 Appendix 2
Slide 3: Overview
Overview 3
Slide 4: 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 5: Delivery Hero at a glance
Overview Business Model Value Creation Profitability Outlook Delivery Hero at a glance Introduction to Delivery Hero Diversified brand portfolio Americas Europe MENA Asia Integrated Corporate group: Headquartered in Berlin, Germany, with 51k employees Verticals globally 27% Operational presence: >70
Slide 6: Our journey in becoming the world's largest local delivery business
Overview Business Model Value Creation Profitability Outlook Our journey in becoming the world’s largest local delivery business acquisition and disposal of Acquisition of acquisition IPO in First Acquisition of opened Raises $350m Frankfurt (Turkey) Opening of start-up funding its 1,000th 5m orders
Slide 7: Global leader in food delivery and quick commerce
Overview Business Model Value Creation Profitability Outlook Global leader 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 7
Slide 8: Business Model
Business Model 8
Slide 9: Our global delivery business is based on three pillars
Overview Business Model Value Creation Profitability Outlook Our global delivery business is based on three pillars PLATFORM OWN QUICK DELIVERY COMMERCE Our ecosystem ▪ We work with a large global ecosystem of riders, restaurants, shops and partners ▪ Delivering from prepared meals to groceries, flo
Slide 10: Our Platform business
Overview Business Model Value Creation Profitability Outlook 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 10
Slide 11: The two pillars of Quick Commerce
Overview Business Model Value Creation Profitability Outlook 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 Integrated Verticals Cov
Slide 12: Customer journey within Quick Commerce (Dmarts & Shops)
Overview Business Model Value Creation Profitability Outlook Customer journey within Quick Commerce (Dmarts & Shops) Choose Quick Select between Choose a Pick Checkout Commerce Option Dmarts or Shops category items 1 2 3 4 5 12
Slide 13: Our Dmart concept
Overview Business Model Value Creation Profitability Outlook 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 up to ~6,000 Food
Slide 14: Powerful flywheel effect maximizing our value proposition
Overview Business Model Value Creation Profitability Outlook Powerful flywheel effect maximizing our value proposition Customers More Choice choice, better Customers Affordability service More orders, higher Seamless experience productivity Two-sided marketplace Vendors Reach (restaurants, grocers a
Slide 15: Our main business lines generate similarly attractive gross profits
Overview Business Model Value Creation Profitability Outlook Our main business lines generates similarly attractive level of gross profits Integrated Reporting lines Platform Verticals Jan-22 unit economics Best-in-class Marketplace Own delivery ex-Woowa (€ per order) Dmarts2 AOV / Basket size 10.0
Slide 16: Long-term Value Creation
Long-term Value Creation 16
Slide 17: Global leadership, additional revenue opportunities and clear focus on profitability
Overview Business Model Value Creation Profitability Outlook Global leadership, additional revenue opportunities and clear focus on profitability to drive shareholder value Business model based on highly attractive cohorts Existing cohorts generate higher GMV over time. Newly acquired cohorts even g
Slide 18: Our business model is based on highly attractive cohorts
Overview Business Model Value Creation Profitability Outlook Our business model is based on highly attractive cohorts Monthly average order frequency Monthly average number of orders per active customer 3.1x 3.0x Pre-COVID COVID Post-COVID Improvement over the years 4.9 Acq. Year 1 Year 2 Year 3 Yea
Slide 19: Achieving our long-term target of >€200bn requires order density below Top 7 markets
Overview Business Model Value Creation Profitability Outlook Achieving our long-term target of >€200bn requires order density below that of our Top 7 markets* Average monthly orders per capita (x) Comments Top 7 markets* Tail markets* approx. two-thirds of FY21a GMV remaining approx. one-third of FY
Slide 20: We have built a global footprint and leading positions across the world
Overview Business Model Value Creation Profitability Outlook We have built a global footprint and leading positions across the world Asia MENA Europe Americas Globally Countries 74 13 11 35 15 #1 positions1 56 10 10 25 11 Total population 2.2bn 887m 300m 765m 224m 6% 15% % GMV FY22 60% 19% Note: Del
Slide 21: Our unmatched global scale is one of our key competitive moats
Overview Business Model Value Creation Profitability Outlook Our unmatched global scale is one of our key competitive moats Countries served Population coverage Orders (#) (#bn) 74 2.2 ~1.7x ~1.4x ~2.6x ~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 globally leadin
Slide 22: Quick Commerce: complementary and synergetic to the overall business
Overview Business Model Value Creation Profitability Outlook 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 penetration decreased ti
Slide 23: Advertising products to provide new earnings opportunity
Overview Business Model Value Creation Profitability Outlook 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. Automatic renewal
Slide 24: Advertising revenue expected to grow quickly over the next years
Overview Business Model Value Creation Profitability Outlook Advertising revenue expected to grow quickly over the next years Advertising revenue as % of GMV 1.4% 1.4% 1.7% 1.7% ~2.5% Long-term target 3-5% of GMV excluding including South Korea South Korea and Glovo and Glovo Advertising products he
Slide 25: Path to profitability
Path to profitability ▪ Profitable Platform business ▪ Unprofitable Platform business ▪ Integrated Verticals ▪ Group 25
Slide 26: Earnings outlook for profitable Platform business improved
Overview Business Model Value Creation Profitability Outlook Earnings outlook for profitable Platform business improved Adj. EBITDA in the profitable Platform1 business FY 2023 and beyond 1 Continued adj. EBITDA expansion of profitable countries (~65% of GMV2) ▪ Achieved an adj. EBITDA run-rate 2 Ne
Slide 27: Path to profitability
Path to profitability ▪ Profitable Platform business ▪ Unprofitable Platform business ▪ Integrated Verticals ▪ Group 27
Slide 28: Constant reduction of negative adj. EBITDA contribution
Overview Business Model Value Creation Profitability Outlook 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 Q4'22 Q1'23 Q2'23E Q3'23E Q4'23E ▪ Significant imp
Slide 29: Path to profitability
Path to profitability ▪ Profitable Platform business ▪ Unprofitable Platform business ▪ Integrated Verticals ▪ Group 29
Slide 30: Dmarts continue to improve their profitability, trending towards break-even
Overview Business Model Value Creation Profitability Outlook Dmarts continue to improve their profitability, trending towards break- even GMV (in €m) Gross Profit (in €m) Gross Profit margin as % of GMV +40% 489 500 (1.8)% 457 (3.8)% (4.7)% 396 359 (10.7)% (10.8)% +9pp Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 31: Path to profitability
Path to profitability ▪ Profitable Platform business ▪ Unprofitable Platform business ▪ Integrated Verticals ▪ Group 31
Slide 32: Material earnings improvement ahead
Overview Business Model Value Creation Profitability Outlook Material earnings improvement ahead Adj. EBITDA/GMV margin on Group level Comments ▪ Adj. EBITDA margin of the Platform business has historically improved by ~1% per year, with the last 2 years seeing a stronger margin development >0.5% ▪
Slide 33: Outlook
Outlook 33
Slide 34: Outlook for Delivery Hero Group in FY 2023
Overview Business Model Value Creation Profitability Outlook Outlook for Delivery Hero Group in FY 2023 GMV 5-7% YoY in constant currency, with GMV growth accelerating throughout the year Total Segment Around 10% YoY in constant currency, with revenue Revenue growth accelerating throughout the year
Slide 35: Strong progress on Gross Profit margin despite moderate GMV growth
Overview Business Model Value Creation Profitability Outlook 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 Best-in-class markets ~3% at high scale Gross Profit to adj. EBITDA for the Group (as % of GMV):
Slide 36: Very attractive long-term margins and high cash conversion
Overview Business Model Value Creation Profitability Outlook Very attractive long-term margins and high cash conversion Long-term (in % of GMV) FY 2022 FY 2023 Comments range ▪ Driven by pricing, advertising, order stacking and Gross Profit 6.0% 10% to 13% improving profitability of Dmarts ▪ High fo
Slide 37: Updating our long-term ambitions
Overview Business Model Value Creation Profitability Outlook Updating 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 GMV subs
Slide 38: Appendix
Appendix 38
Slide 39: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2022 2023 in €m Q1 Q2 H1 Q3 Q4 FY Q1 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 % YoY Growth (RC) 32.1% 19.8% 25.8% 12.3% 8.8% 17.5% 1.5% % YoY Growth (CC) - - - 7.6% 7.9% - 2.1% Total Segment Revenue 2,231.3 2,325.2 4,5
Slide 40: Delivery Hero KPIs (Pro Forma Data)
Delivery Hero KPIs (Pro Forma Data) 2022 2023 in €m Q1 Q2 H1 Q3 Q4 FY Q1 Europe GMV 1,596.1 1,596.7 3,192.9 1,604.7 1,772.8 6,570.4 1,809.5 % YoY Growth (RC) 26.2% 20.9% 23.5% 27.3% 17.7% 22.7% 13.4% % YoY Growth (CC) - - - 27.9% 19.2% - 14.9% Segment Revenue 320.5 329.5 650.0 312.8 356.3 1,319.1 35
Slide 41: Ample liquidity and balanced long-term debt maturity profile
Ample liquidity and balanced long-term debt maturity profile Liquidity (€bn) Debt maturity profile (€m) Comment 3.2 ▪ €4.7bn in outstanding convertible bonds, at a 0.5 weighted average coupon of 1.6% (0.25% to 3.25% range) 0.3 ▪ $825m and €300m term loan with margin of SOFR / Euribor + 5.75% ▪ Undra
Slide 42: 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 43: 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 44: 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 [email protected] [email protected] [email protected] [email protected] loredana.str