Delivery Hero Se Unsp/Adr

Welcome to the Delivery Hero Q2 2026 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 raised hand function at the bottom of your Zoom screen at any time to join the queue to ask a question, and you'll be called upon during the Q&A session. If you have dialed in, please press star nine to enter the queue. If you want to withdraw your question, please lower your hand using the raised hand function in the Zoom app or via telephone press star 9. I will now hand the call over to Andrea Fares Estrada to begin the presentation. Thank you.

Hello and welcome to our Q2 2026 earnings call. I'm joined today by Niklas Oestberg, CEO and Marie-Anne Popp, CFO on Delivery Hero. Together they will present the key highlights of our Q2 2026 results and the first half of 2026. Following their presentation, they will be delighted to address any questions you might have. Before we start, a quick note from our side. Please be advised that any information on the Uber transaction in this presentation does not constitute an offer of or a solicitation of an offer to purchase securities of Delivery Hero or of any of its subsidiaries in the US, Germany or any other jurisdiction. This information shall not form the basis of or be relied upon in connection with an offer in any jurisdiction. And now I will pass it to you, Niklas.

Thank you, Andrea, and welcome everyone also from my side and thank you for joining us today. Q2 is proof that the everyday app strategy is working. The investments we have made in the customer experience and increasing consumer choice are having a positive impact on both our growth and profitability. We have three key messages for you. First, growth is accelerating. Group GMV grew 11.3% like for like in Q2, up from 8.8% like for like in Q1. This was supported by broad-based performance across nearly every segment. We expect this momentum to continue through the second half of the year. Second, Profitability came in ahead of our expectations. Adjusted EBITDA grew 4% or 11% like for like in a period of heightened investment. On the back of these better-than-expected results, we are raising all four key metrics of our full-year guidance. GMV growth to 9-11%, revenue growth to 17-19%, adjusted EBITDA to €960 billion, and free cash flow to more than €250 million. Finally, an update on our structure. On July 16th, Uber announced a voluntary public takeover offer for all delivery of shares it does not already hold at €41.5 per share in cash. This represents a significant premium of approximately 35% to the three-month volume-weighted average price before the announcement. We are really excited about this opportunity. Uber's global platform and our everyday app strategy fit very well together, and I believe this is the right partnership to take our strategy further. separately we had already agreed to the sale of taiwan business to grab for 600 million us dollar in march with closing expected in the fourth quarter of this year now to execution the four Priorities for 2026 we shared in March remain the same. On Q2 showed we are executing against each of them. First, strengthening our leadership position. which we do by deepening loyalty and improving our customer proposition. Subscribers now represent 47% of Group GMV, up by 12 percentage points year on year with more room to grow. In Saudi Arabia, for example, subscribers now drive 63% of GMV, which is the highest share across the Group. Expanding QuickCommerce through a broad, relevant assortment, optimized picking and efficient last mile operations. This combination opens up new shopping occasions and expands our total addressable market. QuickCommerce has been a key contributor to accelerating growth, now contributing 18% of our GMV and growing 32% like for like. Third, using AI to make our product better, driving engagement, advertisement revenue and order frequency. Our recently announced AI Assistant for vendors and shops is a perfect example. It develops strategies for vendors to boost sales and can implement them directly. It spots what a busy owner would miss, a dish that is not selling or a review that needs a reply and a good moment to run a promotion and so on. And once the partner approves, it implements the change directly in a WhatsApp chat they already use. At Glovo, restaurant using it grew orders by 15%. It supports more than 40,000 partners today out of roughly 1.5 million on our platform, so you can see the runway from here. And fourth, the strategic review, which we started to unlock shareholder value and strengthen the balance sheet. The management board and the supervisory board evaluated a broad range of options and the agreement with Uber that we announced on July 16 is the outcome of that process. Let's have a look at our everyday strategy, which is ultimately the engine behind our strong results. Scaling our everyday app serves the primary catalyst for Delivery Hero's next legs of growth expanding our addressable market opportunity nearly fourfold from a 77 billion euro online grocery market to a 310 billion euro for multi-category. This market is also expanding rapidly with online grocery penetration across our markets is still used around five percent. So even within grocery alone, we have many years of growth ahead of us as structural opportunity of online grocery continues to increase. And the mechanism behind this is fairly simple, by systematically driving cross-category shopping from food to grocery to non-grocery, we see a significant uplift in monthly frequency, unlocking significant wallet share and driving sustained long-term growth. Our multivertical QuickCommerce customers are spending five times more than our single vertical customers. Demarts, the term used to refer to our own grocery fulfillment centers, are a key part of the everyday app strategy. They enable the consumers to get a full grocery shop to the door in under an hour and they are what turns an occasional food delivery customer into a weekly one. We started investing in fulfillment centers over five years ago, well before any of our competitors, and it's really paying off. Demart orders grew 39% year over year in Q2. That is our highest order growth rate in over three years and the sixth consecutive quarter of acceleration since Q1 25. Importantly, this momentum is not growth brought with new store rollouts. Orders per store are up 28% year over year. Customers are moving from the quick impulse purchase to the planned weekly or biweekly shop, and we are getting more out of the footprint we already have. Last year we delivered adjusted EBITDA breakeven for the segment showing this is a growth engine that delivers healthy return rates after the initial investment period.