Q3 2020 RESULTS

November 3th, 2020

1

Disclaimer

This document has been prepared by HelloFresh SE (the "Company" and, together with its subsidiaries, the "Group"). All material contained in this document and information presented is for information purposes only and must not be relied upon for any purpose, and does not purport to be a full or complete description of the Company or the Group. This document 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, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision or other transaction whatsoever. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

No representation, warranty or undertaking, express or implied, is made by the Company or any other Group company as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. No responsibility, obligation or liability is or will be accepted by the Company, any other Group company or any of their officers, directors, employees, affiliates, agents or advisers in relation to any written or oral information provided in this document or in connection with the document. All information in this document is subject to verification, correction, completion, updating and change without notice. Neither the Company, nor any other Group company undertake any obligation to provide the recipient with access to any additional information or to update this document or any information or to correct any inaccuracies in any such information.

A significant portion of the information contained in this document, including market data and trend information, is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company or any other person as being accurate. All statements in this document attributable to third party industry experts represent the Company's interpretation of data, research opinion or viewpoints published by such industry experts, and have not been reviewed by them. Each publication of such industry experts speaks as of its original publication date and not as of the date of this document.

This document contains forward-looking statements relating to the business, financial performance and results of the Company, the Group or the industry in which the Group operates. These statements may be identified by words such as "expectation", "belief', "estimate", "plan", "target" or "forecast" and similar expressions, or by their context. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; growth for products and services in new markets; industry trends; and the impact of regulatory initiatives. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. No obligation is assumed to update any forward-looking statements.

This document includes certain financial measures not presented in accordance with IFRS, including, but not limited to, AEBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to result for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.

Q3 2020 RESULTS

2

Third Quarter Highlights

Refresh of Corporate Identity

HelloFresh reaches 5.00m active customers for the first time, up 91.5% versus Q3 2019

Record number of orders (19.49m, up 114% from Q3 2019) and meals (162.0m, up 135% from Q3 2019)

Q3 revenue of EUR 970.2m, constituting YoY revenue growth of 120.2% (in constant currency: 127.7 % )

Continued strong Free Cash Flow generation with EUR 118.5m in Q3 2020 alone

AEBITDA margin up year-on-year by 8.3 pp to 11.8%

Q3 2020 RESULTS

3

Group Customer base up strongly, both year-on-year and sequentially

2019 2020

5 M active customers in Q3 2020

  • Up 91.5% YoY
  • > 800k additional customers vs. Q2 alone
  • Strong growth achieved in both segments

Q3 Active Customers

(in Millions)

+92 %

5.0

4.2

2.6

Q3 Q2 Q3

Q3 2020 RESULTS

4

Structurally higher Order Rate, despite easing of lockdown measures in Q3 across

several markets

Q3 Order Rate

2019 2020

Order rates continue to trend meaningfully above previous

base line

3.5

+ 11 %

4.3

3.9

  • US up 18.7% YoY
  • Intl. up 4.3% YoY

Q3 Q2 Q3

Q3 2020 RESULTS

5

Record number of customer orders in Q3 2020

2019 2020

Driven by both,

  • An increase in # of active customers

• A continued high order rate

9.1

Q3 Orders

(in Millions)

+ 114 %

19.5

18.1

Q3 Q2 Q3

Q3 2020 RESULTS

6

Average order value up by c. 7% on a constant currency basis

Q3 Average Order Value (in €)

2019

+ 3 %

2020

+ 7 % CC

Strong YoY AOV development,

53.7

primarily driven by:

48.3

49.7

  • Higher add-onstake-rate
  • An increased number of meals per order

Q3 Q2 Q3

Q3 2020 RESULTS

7

As a result, we even accelerated further our revenue growth to 128 % (on const.

currency)

2019 2020

  • Higher constant currency revenue growth than in the exceptionally strong Q2 2020
  • Very little summer seasonality
  • Successful ongoing de- bottlenecking and creation of new production capacity across both segments

Q3 Revenue

(in € Millions)

    • 120 %
  • 128 % CC

972 970

441

Q3 Q2 Q3

Q3 2020 RESULTS

8

Similar triple-digit constant currency revenue growth across both segments

2019 2020

Q3 USA

Q3 INTL

(in € Millions)

(in € Millions)

+114 %

+ 129 %

+125 % CC

+ 132 % CC

526

526

446

444

247

194

Q3 Q2 Q3Q3 Q2 Q3

Q3 2020 RESULTS

9

Contribution Margin down YoY due to ongoing COVID effects, but up

sequentially

Q3 Contribution margin1

(in % of revenue)

2019

2020

  • Contribution margin expansion vs. Q2 2020, despite typically higher fulfillment costs during the summer

-0.8 pp

27.5% 26.2% 26.7%

  • US segment more affected by temporary Covid-related cost increases than INTL

Q3 Q2 Q3

Q3 2020 RESULTS

1. Excl. SBC

10

Marketing as % of revenue up sequentially, but meaningfully down YoY

2019 2020

  • Marketing activities still somewhat constrained by capacity limitations across several markets, especially the
    US
  • Continued strong latent demand
  • Very attractive customer acquisition costs

Q3 Marketing1

(in % of revenue)

-7.3 pp

20.0%

12.7%

8.5%

Q3 Q2 Q3

Q3 2020 RESULTS

1. Excl. SBC

11

Very meaningfully AEBITDA growth to € 115m in Q3 2020

Q3 AEBITDA

2019

(in € Millions)

2020

15.8%

• C. 8x growth in AEBITDA YoY

154

  • Margin expansion primarily driven by relative marketing savings and G&A leverage

3.5%

16

11.8%

115

Q3 Q2 Q3

Q3 2020 RESULTS

12

AEBITDA margin of > 10% in each segment in each quarter to date

2019 2020

Q3 USA

Q3 Intl.

(in % of revenue)

(in % of revenue)

+ 8.3 pp

15.5%

+ 5.0 pp

18.8%

11.3%

10.9%

14.8%

15.7%

10.7%

10.0%

6.2%

2.6%

Q3

Q4

Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

Q3 2020 RESULTS

13

Despite continuing to invest strongly in our capabilities and infrastructure, we generate best-in-class cash flows

2019 2020

Q3 Cash Position

(in € Millions)

723

612

111

175

300

137

194

106

31.12.19

Q1 FCF &

31.03.20

Q2 FCF &

30.06.20

Q3 FCF

30.09.20

Other

Other, CB1

& Other

Q3 2020 RESULTS

1. Cash from the issue of convertible bonds with a value of 175 MEUR in May 2020, with a term of 5 years and a coupon of 0.75%

14

Updated FY 2020 Outlook

Guidance

Guidance

( A u g 2 0 2 0 )

( O c t 2 0 2 0 )

C o n s t . C u r r e n c y

75% - 95%

95% - 105%

R e v . g r o w t h

A E B I T D A

9% - 11%

11.25% - 12.75%

m a r g i n

Q3 2020 RESULTS

15

Appendix

16

USA: Operational and Financial KPIs

Q3 19

Q3 20

Active Customers (m)

1.48

2.49

Average Order Rate

3.4

4.0

Average Order Value (€)

49.4

52.7

Average Order Value constant currency (€)

49.4

55.5

%

YoY revenue growth1

38.4%

124.7 %

CC4

Revenue1

44.9%

113.5 %

€

(€m)

526.3

246.5

Contribution

%

Revenue

24.2%

margin2

27.5%

(€m)

127.9

67.8

AEBITDA3

%

Revenue

2.6%

10.9%

(€m)

57.6

6.4

1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

17

  1. AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
  2. Based on constant currency

INTL: Operational and Financial KPIs

Q3 19

Q3 20

Active Customers (m)

1.13

2.51

Average Order Rate

3.6

3.8

Average Order Value (€)

47.0

46.6

Average Order Value constant currency (€)

47.0

47.2

%

YoY revenue growth1

47.1%

131.5 %

CC4

Revenue1

46.8%

128.5 %

€

(€m)

443.8

194.2

Contribution

%

Revenue

30.2%

margin2

27.7%

(€m)

134.5

53.8

AEBITDA3

%

Revenue

10.7%

15.7%

(€m)

69.9

20.8

1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

18

  1. AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
  2. Based on constant currency

GROUP: Operational and Financial KPIs

Q3 19

Q3 20

Active Customers (m)

2.61

5.00

Average Order Rate

3.5

3.9

Average Order Value (€)

48.3

49.7

Average Order Value constant currency (€)

48.3

51.4

%

YoY revenue growth1

42.2%

127.7 %

CC4

Revenue1

45.8%

120.2 %

€

(€m)

970.2

440.6

Contribution

%

Revenue

26.7%

margin2

27.5%

(€m)

259.3

121.1

AEBITDA3

%

Revenue

3.5%

11.8%

(€m)

114.7

15.5

1. Revenue post promotional discounts, customer credits, refunds and excluding VAT; YoY stands for year on year and compares the respective quarter with the same quarter of the previous year

2. Contribution margin is defined as revenue less cost of goods sold and fulfilment expenses, excluding share-based compensation expenses

19

  1. AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses; AEBITDA margin is defined as % of revenue
  2. Based on constant currency

Profit and Loss Statement

(€m)

Q3 2019

Q3 2020

Revenue

440.6

970.2

% YoY growth

45.8 %

120.2%

Procurement Expenses1

(156.4)

(332.4)

Gross profit

284.2

637.8

Margin (% of revenue)

64.5%

65.7%

Fulfilment expenses1

(163.5)

(379.8)

Marketing expenses1

(88.6)

(124.3)

G&A1

(30.2)

(39.1)

Other operating income & expenses

(1.0)

(2.5)

EBIT

0.9

92.1

Margin (% of revenue)

0.2%

9.5%

Financial result

25.4

(11.5)

EBT

26.3

80.6

Income tax (expense) benefit

(2.6)

(6.0)

Net income / (loss)

23.7

74.6

Reconciliation starting at EBIT

EBIT

0.9

92.1

D&A

9.3

11.6

EBITDA

10.2

103.7

SBC

5.1

6.3

Special Items2

0.2

4.7

AEBITDA3

15.5

114.7

Margin (% of revenue)

3.5%

11.8%

1. Including share-based compensation expenses

20

2. Does not include expenses related to Covid-19

3. AEBITDA is calculated by adjusting EBITDA for special items and share-based compensation expenses. Excluding holding fees.

Balance Sheet and Cash-Flow Statements

(€m)

31.12.2019

Assets

Non - current Assets

288.7

Current Assets*

281.5

*of which cash

193.6

Total assets

570.2

Equity and liabilities

Equity

245.3

Non - current liabilities

111.1

Current liabilities

213.8

Total equity and liabilities

570.2

Q3 2019

Cash flow from operating activities

36.1

Cash flow used in investing activities

(11.0)

*of which M&A

-

Cash flow from financing activities

(4.9)

30.09.2020

307.6

864.9

722.5

1,172.5

518.5

272.1

381.9

1,172.5

Q3 2020

134.8

(14.2)

-

0.9

21

Share Count

As of September 30st, 2020

Types of share

Ordinary shares

Stock exchange

Frankfurt Stock Exchange

Market Segment

Regulated Market (Prime Standard)

Number of shares issued

173,864,415

Number of shares outstanding

173,501,251

Employee incentive plan

Options

RSU

Total

Vested (in mn)

3.70

0.18

3.88

Unvested (in mn)

4.06

0.58

4.64

Outstanding (in mn)

7.77

0.75

8.52

WAEP1 (in EUR) Vested

8.98

0.00

8.57

WAEP1 (in EUR) Unvested

14.05

0.00

12.31

WAEP1 (in EUR)

11.53

0.00

10.51

22

1. Weighted average exercise price

Financial Calender

2 3 4 5 6

November

9

10

11

12

13

16

17

18

19

20

23

24

25

26

27

30

31

1

2

3

Dezember

7

8

9

10

11

14

15

16

17

18

21

22

23

24

25

28

29

30

31

1

4

5

6

7

8

Januar

11

12

13

14

15

18

19

20

21

22

25

26

27

28

29

Februar

1

2

3

4

5

8

9

10

11

12

15

16

17

18

19

03.11.20 Q3 Earnings Call

04.11.20 Credit Suisse Roadshow Canada

03.11.20 Kepler Roadshow Frankfurt

18.11.20 Morgan Stanley Conference

19.11.20 Morgan Stanley Conference

03.12.20 Berenberg Conference

10.12.20 Capital Markets Day

22

23

24

25

26

23

24

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Disclaimer

HelloFresh SE published this content on 03 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2020 10:14:03 UTC