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Creation of the Global Online Takeaway Group

Creation of the Global Online Takeaway Group 10
The The Le Lea adi ding ng G Glloba oball IInt nte erne rnet t P Plla at tf form orm O Out uts siide de t the he U US S a and nd C Chi hina na Building out the Global Leadership in Online Takeaway Increase in DH Ownership to Close to 40 Direct foodpanda Majority Ownership Yemeksepeti Stake to Become Part of Global Online Takeaway Group March 2015Disclaimer This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. This presentation contains certain forwardlooking statements relating to the business, financial performance and results of Rocket Internet AG, its subsidiaries and its participations ( collectively, Rocket) and/or the industry in which Rocket operates. Forwa lro doking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, exp  ects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similarr d e xp lor oe ki ssi ng o n sts. a tT em he e n fo ts rw co a ntained in this presentation, including assumptions, opinions and views of Rocket or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Rocket operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and Rockets ability to achieve operational synergies from acquisitions. Rocket does not guarantee that the assum ptions underlying the forwardlooking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forwardlooking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Rocket with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Rocket since such date. Consequently, Rocket does not undertake any obligation to review, update or confirm recipients expectations or estima ets or to release publicly any revisions to any forwardlooking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation. Neither Rocket Internet AG nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forwardlooking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation. 1 1Food Groceries the Next Frontier ( 1 ) Global eCommerce market size US Online (2) 19 7 3 35 42 penetration ¬ 324bn ¬ 27bn Food and ¬ 153bn Groceries Home and Living ¬ 167bn Fashion ¬ 160bn Online Travel Consumer Goods Source: BCG, IDC, Euromonitor, Planet Retail, BookStats ( 2013) , Consumer Electronics Association (2014), eMarketer (2013) , Morgan Stanley ( 2013), Phocus Wright Notes: (1) Global eCommerce market size per segment; ( 2) US online grocery sales as of total grocery retails sales in 2018 (estimated 5year CAGR of 11) 2Food a Massive Opportunity ¬ 90 billion 5 (2) global takeaway food penetration in the US (1) delivery market Source: BCG, Callcredit, Daedal, Euromonitor, IRC, MarketLine, Wells Fargo Notes: (1) Global takeaway food delivery market size by 2019, CAGR 201419E of 2.3; (2) As of June 2014, average penetration in the US by 2018 3 Also in Terms of Profit Potential Longerterm Typical Steadystate Global Revenue EBITDA online commission EBITDA ( 1 ) Takeaway potential potential ( 2 ) (2 ) market share rate margin ¬ 90bn 65 13+ ¬ 7.6bn 45+ ¬ 3.4bn+ Source: Callcredit, Daedal, Euromonitor, Just Eat investor presentation Notes: (1) Global takeaway food delivery market size by 2019, CAGR 201419E of 2.3 (2) Based on Just Eat's established geographies ( e.g. UK and Denmark) longterm equity research projections 4Online Penetration in Europe and Developing Markets with Significant Upside ( 1 ) eCommerce penetration 14 Eastern Europe 3.3 Western Europe 6.7 6 ( 4) 2.3 (2) 6.3 3 14.2 11.0 6.1 US Western Emerging ( 2 ) 0.7 1.5 Europe Markets (3 ) ( ex China) 3.2 6.8 2.3 Source: Morgan Stanley Research Estimates, Euromonitor, eMarketer, Forrester, National Government Data Sources (1) 2014E online retail sales in relation to total retail sales; (2) Average based on UK, Germany, France, Spain, Italy, Netherlands and Sweden eCommerce penetration; ( 3) Emerging Markets defined as Argentina, Brazil, India, Russia, Chile, Mexico ( excluding China) ; (4) Eastern Europe B2C eCommerce sales share 2014F ( eMarketer), excluding Russia 5Key Strategic Investments in the Online Takeaway Market Rocket Internet stake Consideration Transaction structure post transaction Talabat + ( 1) c. 39 Primary / Secondary ¬ 52m ¬ 45m c. 52 Primary / Secondary Note: All transactions shown are subject to closing ( 1) On a fully diluted basis 6Delivery Hero Market Leader in Developed World Ex US and UK 24 No.1 90k 5.8m 62.6m 96 ¬ 656m (1) countries leader restaurants active users ann. order GMV in 2014 ( 1) ( 2) 19 countries in H2 2014 orders growth Source: Unaudited Delivery Hero information (management accounts) Notes: Above is not pro forma for Talabat (1) December 2014 ( 2) H2 2014 over H1 2014 7foodpanda Market Leader in Emerging Markets 39 31 526 46k 2.3m 13m ¬ 160m 400 (1) countries no. 1 countries cities restaurants users annualised annualised order ( 2) (4) (3) orders GMV growth Source: Unaudited foodpanda information ( management accounts) Notes: foodpanda figures are pro forma for acquisitions ( 1) Includes 10 African countries owned by Africa Internet Group ( 2) Based on December 2014 ( 3) H2 2014 over H1 2014; mixture of organic and inorganic growth ( 4) December 2014 annualised; incl. VAT 8Global Online Takeaway Group Global Leader in Online Takeaway 9Creation of the Global Online Takeaway Group 100 Global Online Takeaway Group ( 2) (1) c. 52 c. 39 100 100 11.4 (E merging ( V arious) (S pain) ( I taly) (T urkey) Markets) (M iddle East) Note: All transactions shown are subject to closing ( 1) Existing stake which Rocket intends to contribute to the Global Online Takeaway Group (2) On a fully diluted basis 10Building the Global Leader in the Online Takeaway Market (1) 6 1.4 0.5m 5.8m 39 countries (2) (4) (3) countries restaurants users ann. orders 1 in 31 countries 24 90k 5.8m 63m ( 2) ( 3) countries restaurants users in H2 14 ann. orders ( 2) c.46k restaurants 1 4k 560k 1.4m (2) ( 4) ( 3) country restaurants users ann. orders (2) 2.3m active users 13m annualised 1 312 240k 1.1m (3) orders ( 2) ( 4) ( 3) country restaurants users ann. orders Source: Unaudited foodpanda, Delivery Hero, Pizzabo, Talabat and LaNeveraRoja information ( management accounts) Notes: foodpanda figures are pro forma for acquisitions; DeliveryHero is not pro forma for Talabat ( 1) Includes 10 African countries owned by Africa Internet Group; (2) As of December 2014; ( 3) Based on December 2014; ( 4) Based on December 2014 visits 11Global Online Takeaway Group  Leader in Online Takeaway Globally 71 58 142k 84m ( 1 ) ( 2 ) ( 3 ) countries no. 1 countries Restaurants ann. orders Source: Unaudited foodpanda, Delivery Hero, Pizzabo, Talabat and LaNeveraRoja information ( management accounts) Notes: foodpanda figures are pro forma for acquisitions, Global Online Takeaway Group numbers include 100 of Delivery Hero and Talabat (1) Includes 10 African countries owned by Africa Internet Group as well as Yemeksepeti countries; excludes overlapping countries ( 2) As of December 2014 (3) Annualized based on December 2014 12Present in 71 Countries and No.1 in 58 1 2 (1 ) foodpanda ( 2 ) Delivery Hero La Nevera Roja Pizzabo + Yemeksepeti Notes: Market position based on number of orders and web traffic; foodpanda figures are pro forma for acquisitions; DeliveryHero is not pro forma for Talabat ( 1) 10 African countries ( Ghana, Ivory Coast, Kenya, Morocco, Nigeria, Rwanda, Senegal, Algeria, Tanzania, Uganda) where the foodpanda model is owned by the Africa Internet Group (2) Market leader in China within professional / white collar segment; Denmark presence represents minority stake 13Capturing the Largest Market Global vs JustEat Online / vs Takeaway GrubHub ( 2 ) Group Countries 39 24 8 6 1 1 71 5x / 36x 13 2 ( ) Population 3,369 2,074 145 51 47 61 5,453 8x / 14x 647 383 ( m) Nominal GDP 14,547 27,028 2,580 1,700 1,397 2,149 44,496 2.5/2.2x 17,826 20,377 (USbn) Internet penetration 24.8 51.1 54.4 60.6 75.0 80.5 35.2 0.5x/0.4x 65.7 80.9 ( 1) () Source: EIU, Euromonitor, BMI Notes: foodpanda figures are pro forma for acquisitions, Global Online Takeaway Group numbers include 100 of Delivery Hero and Talabat; JustEat figures are PF for acquisition of Sindelantal Mexico; DeliveryHero is not pro forma for Talabat ( 1) Calculated as number of internet users relative to population ( 2) Excludes overlapping countries 14... as the Largest Company in the Sector Countries of Takeaway restaurants Orders ( 1) ( 000s) (m) operation (3 ) 84 (2 ) 71 142 ( 5 ) 74 ( 4 ) 67 ( 7 ) 43 (6 ) 30 13 2 Global Global Global Online Online Online Takeaway Takeaway Takeaway Group Group Group Source: Unaudited foodpanda, Delivery Hero, Pizzabo, Talabat and LaNeveraRoja information Notes: foodpanda figures are pro forma for acquisitions; Global Online Takeaway Group numbers include 100 of Delivery Hero and Talabat (1) Excludes overlapping countries, includes 10 African countries owned by Africa Internet Group for foodpanda and Yemeksepeti countries (2) As of December 2014 (3) December 2014 annualised ( 4) Annualised based on H1 2014 ( 5) Annualised based on daily average grubs for Q4 2014 ( 6) June 2014, PF for addition of 2,500 restaurants via acquisition of Sindelantal Mexico 15Delivery Hero High Growth with Continued Focus on Profitability 16Delivery Hero Continues Strong Growth in 2015 Orders GMV Revenues ( m) ( ¬ m) ( ¬ m) 15 34 251 174 120 156 15 5 98 Q1 2014A Q1 2015E Q1 2014A Q1 2015E Q1 2014A Q1 2015E Source: Unaudited Delivery Hero information (management accounts) Note: Data are excluding BDT and acquisitions of Damejidlo and Jidloted in Czech Republic as well as Talabat 17Delivery Hero Continues Path to Strong Profitability EBITDA margin ( Top 2 markets) 7pp EBITDA Margin Improvement 57 53 50 H1 2014A H2 2014A JanFeb 2015A Source: Unaudited Delivery Hero information ( management accounts) 18Maximizing Ownership in Delivery Hero Contribution of Talabat into Delivery Hero and Further Acquisition of Secondary Shares Acquisition of Secondary Shares for ¬ 52m 8 in DH 3 in DH Fully diluted ownership of c. 39 in Delivery Hero Note: All transactions shown are subject to closing; numbers do not add up due to dilutive effect of issuance of shares in exchange of contribution 19Majority Ownership in foodpanda 20Restructuring and Increase in foodpanda Direct Ownership Distribution of foodpanda shares held Acquisition of Millicom Funding round by LIG secondary shares Rocket Internet Millicom Rocket Investment ¬ 8m ¬ 37m 4 2 9 4 2 Increase in direct foodpanda ownership from below 50 to c. 52 Note: All transactions shown are subject to closing; numbers do not add up due to dilutive effect of capital increase 21Rationale for foodpanda Transactions Growth capital for foodpanda expansion Funding Round Distribution of LIG Restructuring to direct ownership shares Acquisition of Securing maximum ownership at attractive price below Millicom shares current funding round 22Strategic Focus on Food Groceries Market 23Further Rocket Internet Exposure to the Food Groceries Sector Cookathome food Global leader in Online marketplace Local bio produce Preparation of a delivery where subscription based for grocery shopping delivered to the daily changing customers choose grocery ecommerce combining local doorstep healthy meals at low from a weekly menu store offering with cost (£7 / ¬ 7) with Farmfresh From fruits over and get delivered same day delivery ultra fast delivery ingredients and meat and fish to milk local, high quality by personal ( 15 min) delicious recipes products produce shoppers delivered to the Targeted at large Choice of exact AlaCarte or doorstep Delivery fee and cities within the delivery time membership surcharge on regular Rocket companies Active in Germany, supermarket prices footprint Delivery for free from Delivery during Australia, UK, ¬ 30 order value specified time slots Austria, US, France, Launched in Q3 Launched in London onwards Netherlands and 2014 in Munich in Q3 2014 and in Germany, UK and Belgium Berlin Q4 2014 Launched in Q1 Netherlands 2015 in Berlin 24Update of LPV and Investments 25Update on LPV and Investments LPV and Investments ¬ 0.7bn Global Online ¬ 3.4bn Takeaway Group ( 1) investments LPV (1) Includes those investments whose purchase prices were publicly announced ( DeliveryHero, Talabat) 26The Leading Global Internet Platform Outside the US and China 27