Delivery Hero grows revenue by 77% for the full year 2018

Berlin, 06 February 2019 - Delivery Hero Group ("Delivery Hero"), one of the leading global online food ordering and delivery marketplaces, accelerated growth in the fourth quarter. In the financial year 2018 revenue grew by 77% year-on-year on a constant currency basis excluding Germany and accounting for hyperinflation in Argentina.

Niklas Östberg, CEO of Delivery Hero, said:

"2018 has been another successful year for Delivery Hero. Our focus on the customer experience, the launch of many new initiatives like the roll out of delivery and multi-vertical products, the expansion into new cities and suburbs combined with our M&A strategy to focus our resources on the largest opportunities are all delivering results. Today 80% of our GMV comes from countries in which we hold leadership positions. We are more confident than ever that our investments will allow us to attract millions of new customers to our platform. I am very excited about the incredible growth opportunities that lie ahead of us."

Group Financial Performance Full Year 2018 (excluding Germany):

• Orders grew by 49% to 369 million
• Gross Merchandise Value (GMV) grew by 55% on constant currency and by 42% as reported to EUR 4,454 million
• Group take-rate reached 15.4% and group take-rate excluding own delivery orders at 11.3%
• Revenues grew by 77% on constant currency and by 65% as reported to EUR 687 million
• Previously stated revenue guidance of EUR 780-785 million has been exceeded with full year revenues of EUR 792 million for 2018 (including Germany)
• Preliminary adjusted EBITDA margin is approximately -18% (including Germany) in line with the previous guidance

Recap and Update on German Transaction:

• In December 2018, Delivery Hero announced the sale of its German operations to Takeaway.com N.V. ("Takeaway") in exchange for cash and shares in Takeaway. The consideration will comprise of EUR 508 million in cash and 9.5 million shares in Takeaway. The transaction comprises the Lieferheld, Pizza.de and foodora businesses in Germany
• The key aspects of the transaction include:
• The transaction enables Delivery Hero to strengthen its global footprint, increase its focus on key growth regions and reinforce Delivery Hero's leadership positions
• Current enterprise value of EUR 1,060 million (up from EUR 930 million at signing as a result of the increase in Takeaway's stock price), which equates to a GMV multiple of 1.6x 2018 Actuals (being a revenue multiple of 10.1x 2018 Actuals)
• In January 2019, Takeaway successfully raised capital to finance the cash component of the transaction (EUR 508 million) via an equity capital increase and announced a convertible bond offering
• After the fundraise, the initial ownership of c. 18% in Takeaway will be 15.5% prior to the dilution following a conversion of the convertible bond
• The equity stake in Takeaway enables Delivery Hero to benefit further financially from any value creation that Takeaway may generate
• Following completion of the Transaction, Delivery Hero will have the right to submit a binding nomination for the appointment of one independent member to Takeaway's supervisory board
• The transaction is only subject to approval of the general meeting of Takeaway. Takeaway's extraordinary general meeting is expected to take place on 5 March 2019

Recap and Update on Additional lnvestments:

• The increase in cash position from the above-described transaction allows Delivery Hero to allocate more capital towards investment opportunities across its segments at attractive returns thereby expanding leadership positions and growth
• As a result, Delivery Hero announced an upgrade to its investment plan, with an aim to increase investments with a net adjusted EBITDA impact of negative EUR 250 million over the course of 2019. Delivery Hero expects to generate incremental revenues of EUR 45 million in 2019 and EUR 81 million of incremental recurring revenue per year starting in 2020
• Delivery Hero had a good start to the investment program and is confident to deploy the entire EUR 250 million on top of the previously announced EUR 160 million over the course of 2019

Recap Outlook:

• As previously outlined, Delivery Hero expects to achieve the following:
• Revenues between EUR 1,080 million and EUR 1,150 million for 2019 in line with expectations prior to the Germany transaction (notwithstanding the deconsolidation of German operations)
• Adjusted EBITDA between negative EUR 270 and EUR 320 million after the additional investments
• Europe segment to reach breakeven during the second half of 2019
• MENA segment to generate EUR 70 million of adjusted EBITDA in 2019 after the additional investments
• Delivery Hero is confident in its ability to deliver its ambitious revenue guidance on the back of a strong start to 2019
• The annual report 2018 with the audited IFRS financial statements will be published on April 25, 2019

Key Performance Indicators Full Year 2018 (excluding Germany):

Key Performance Indicators Full Year 2018 (including Germany):

1) Americas revenues and GMV are impacted by the Argentinian operations qualifying as hyperinflationary economy according to IAS 29 beginning 1 September 2018. 2018 revenue is retrospectively adjusted. Comparability is affected as prior period information is not restated.

2) Constant currency growth rates for the group total segment revenue and Americas revenue as well as GMV exclude hyperinflation in Argentina.

Definitions:

• Gross Merchandise Value (GMV) is the total value of orders (including VAT) transmitted to restaurants
• Revenues are total segment revenues prior to IFRS 15 and any adjustments for discounts
• onstant Currency provides an indication of the business performance by removing the impact of foreign exchange rate movements
• All numbers have been adjusted and exclude divestments of India and foodora non-core (Australia, France, Italy, Netherlands) and Germany:
• In 2017, India revenues were EUR 2.3 million in Q1, EUR 2.6 million in Q2, EUR 2.5 million in Q3 and EUR 2.5 million in Q4
• In 2017, foodora (Australia, France, Italy and Netherlands) revenues were EUR 6.2 million in Q1 and EUR 6.8 million in Q2, EUR 6.3 million in Q3 and EUR 7.6 million in Q4. In 2018, revenues were EUR 7.4 million in Q1, EUR 7.1 million in Q2 and EUR 3.9 million in Q3, EUR 0.7 million in Q4
• In 2017, Germany revenues were EUR 21.4m in Q1, EUR 21.7m in Q2, EUR 22.7m in Q3 and EUR 24.3m in Q4, in 2018 the revenues were EUR 25.5m in Q1, EUR 24.7m for Q2, EUR 25.9m for Q3 and EUR 29.3m for Q4
• Numbers have not been adjusted for smaller acquisitions or divestments

Conference Call and Webcast Details:

Niklas Östberg, Emmanuel Thomassin, and Duncan McIntyre will host an analyst and investor conference call to discuss the preliminary results at 09:00am CET on February 6, 2018. Members of the investor community can follow the audio webcast on https://webcasts.eqs.com/delivery20190206. An on-demand replay will be available on the corporate website following the presentation.

The accompanying presentation can be downloaded on the Delivery Hero website, via the following link: https://ir.deliveryhero.com/websites/delivery/English/3500/presentations-and-webcasts.html

Financial Calendar 2019:

About Delivery Hero:

Delivery Hero is one of the leading global online food ordering and delivery marketplace with number one market positions in terms of restaurants, active users and orders in more countries than any of its competitors and online and mobile platforms across 41 countries in Europe, the Middle East & North Africa (MENA), Latin America and the Asia-Pacific region. Delivery Hero also operates its own delivery service primarily in over 200 cities around the world. The Company is headquartered in Berlin and has over 21,000 employees.

For more information, please visit www.deliveryhero.com

WKN: A2E4K4; ISIN: DE000A2E4K43

Disclaimer:

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