Delivery Hero Se Unsp/Adr

Welcome to the Delivery Hero Q4 2025 Trading Update. Today's presentation will be followed by a Q&A session. For those of you who have joined the Zoom webinar, you can use the raise hand function at the bottom of your Zoom screen at any time to join the queue to ask a question, and you will be called upon during the Q&A session. If you have dialed in, please press star 9 to enter the queue. If you want to withdraw your question, please lower your hand using the raise hand function in the Zoom app or via telephone press star 9. I will now hand over to Christoph Bast to begin the presentation.

Hello and welcome everyone. Thank you very much for joining our Q4 2025 earnings call. Joining me on this call are Niklas Westberg, CEO and Marianne Popp, CFO at Delivery Hero. Together they will present the key highlights of our Q4 2025 results. Following their presentation, we'll be delighted to address any questions you might have. And now over to you, Niklas.

Thank you Christoph and welcome everyone and thank you for listening in. So 2025 was a challenging year with tough competition, FX had wind and regulatory uncertainties. Therefore, I'm very happy to share that we returned to growth in Korea as promised. We completed the rider model change in Spain and Italy. We accelerated growth in Saudi Arabia at the end of the year, which was even beyond our highest expectations. I'm also very happy to have turned the integrated vertical segment profitable while growing very fast. Staying on the topic of integrated verticals and QuickCommerce in general, let's move to the next slide. So what you can see here is our QuickCommerce business, which represents the next frontier of our platform's evolution. We have moved beyond traditional food delivery to become an indispensable everyday app, leveraging a hybrid model of food delivery, owned DMARTs and local retail partnerships. The primary strategic advantage is the deep structural stickiness it creates within our user base. We aren't just a service, we are a daily habit. We capture diverse shopping occasions across the entire consumer journey, starting from your essential grocery shopping over pet food, electronics, to health and beauty products and so on. The results speak for themselves. QuickCommerce is currently outpacing food delivery with GMV growth of over 30%. In addition to continuous strong growth in groceries, we are seeing significant momentum across non-grocery verticals. Within this, health and beauty stands out, contributing over 50% year-on-year growth, while non-grocery as a whole already accounts for 20% of our quick commerce volume. With 2025 GMV surpassing 7.5 billion euro, we are scaling rapidly to meet our 2026 GMV target of around 10 billion euros, solidifying our position as the leader in instant grocery and retail delivery. Now moving to ad tech. Some time ago, we gave the ambitious long-term target for our ad tech business to reach more than 1.5 billion euro revenues in the full year of 2025. As you can see, we came very close to this target despite a slower rollout of our ad tech products in South Korea. Although the share of ad tech revenues in Korea constantly increased in the last two years, it is still behind the group average. leaving plenty of upside. On group level, ad tech revenues grew to 3.0% of GMV in 2025, and in Q4 2025, the share reached already 3.2%, with very attractive adjusted EBITDA margins. Our continuous improvements to the performance of the ad products contribute strongly to this growth, To name some key developments, our personalized ad ranking system leverages neural networks to improve the relevance of ads and the efficiency of our user targeting. this combined with our machine learning based automated ad bidding and pacing enables return on ad spending to improve from 3.9 times to 6 times between 2022 and 2025 and this unlocking significant additional investments from vendors in simple words we offer better and more relevant ads with greater returns to our vendors Throughout the years, we have stretched and strengthened our ad product portfolio from launching display ads in 2025, our CPC rollout in VUVA in 2022, to keywords revamp and video ads launched in 2025. These products support restaurants and vendors to increase visibility and conversion rates. Going forward, the main growth drivers for our ad tech business will be Vova, Glovo and PDGa, which are all below group average right now, but growing strongly. Our long-term ambition remains to achieve ad tech revenues of above 4% of GMV. And ad tech is just one area where we are seeing huge improvements from AI. As we navigate the broader AI transformation, we view our complex physical operations as profound structural modes. AI agents help us predict demand or recommend great restaurants to customers, but they cannot move physical goods, manage millions of real-time merchant integrations, or run hyper-local logistics, D-marts, and kitchens. Because our business is fundamentally anchored in hard, real-world execution, we're highly insulated from purely digital disruption. Ultimately, we see ourselves as massive beneficiaries of this revolution, leveraging AI to drive huge upside across consumer experience, merchant success, and bottom-line efficiencies. So with that, let me now hand over to Marianne, who will guide us through the financial highlights.