Takeaway com : 31-07-2019 Press release H1 2019 Results

Amsterdam, 31 July 2019

Half Year 2019 Results

Takeaway.com gross revenue up by 68%; Germany up by 111%

Statement of Jitse Groen, CEO of Takeaway.com: "Half-way through this transformational year, our company already looks fundamentally different from last year. Acquisitions as well as the organic development of our business contributed to the strong growth, and we have now also reached operational profitability. As the penetration of online food delivery in our Leading Markets is still low, Takeaway.com will continue to prioritise sustainable growth over profit."

• Takeaway.com processed 71 million orders in the first six months of 2019, representing an order growth of 70% compared with the first half of 2018.
• Gross revenue1 grew by 68% to €185 million in the first six months of 2019 compared with €110 million in the first half of 2018.
• In the first six months of 2019, order growth in the Netherlands was 18%, resulting in a revenue increase of 24% compared with the first half of 2018. Adjusted EBITDA2 in the Netherlands further increased to €29 million in the first six months of 2019 compared with over €25 million in the first half of 2018.
• In Germany, Takeaway.com achieved 111% gross revenue¹ growth and 85% order growth in the first half of 2019 supported by the consolidation of the German Delivery Hero businesses as per 1 April 2019. The underpenetrated online food delivery market in Germany remains a significant growth opportunity for Takeaway.com.
• Gross revenue¹ in Other Leading Markets grew by 82% to €44 million in the first six months of 2019 compared with €24 million in the first half of 2018. Orders in Other Leading Markets showed strong growth of 123% in the first six months of 2019 compared with the first half of 2018, primarily driven by the addition of our business in Israel, which was acquired in September 2018. Excluding Israel, order growth in Other Leading Markets was 47% in the first six months of 2019 compared with the first half of 2018.
• Adjusted EBITDA2,3 for the Company was €1.8 million in the first six months of 2019 compared with minus €6.1 million in the first half of 2018. This marks the first operational profit for Takeaway.com since its IPO in September 2016. Management remains committed to continued investments in all markets in which it operates in order to maintain and expand strong market positions.
• Orders via Takeaway.com's restaurant delivery service Scoober represented 4.9% of total orders in the first six months of 2019 versus 2.3% of total orders in the first half of 2018. Scoober is now active in 69 cities in ten countries and management intends to expand to more new cities in the coming period.
• Takeaway.com has been included in the AEX-Index on Euronext Amsterdam effective as of 24 June 2019.
• In May 2019, Takeaway.com Payments B.V., a 100% subsidiary of the Company, was granted a licence as a payment institution under the Dutch Financial Markets Supervision Act from the Dutch Central Bank. From 1 July 2019 onwards, all online payments in most European markets in which Takeaway.com is active will be processed by Takeaway.com Payments B.V.

1. Not adjusted for voucher expenses under IFRS 15
2. Profit or loss for the period before depreciation (effective 2019: IFRS 16 adjustment included), amortisation, finance income and expenses, share-based payments, share of loss of joint ventures, gain on joint venture disposal, non-recurring items and income tax expense
3. IFRS 16 adjustment is effective since 2019, impact for H1 2018 is €1.1 million, so adjusted EBITDA would amount to minus €5.0 million

1

Takeaway.com N.V. (AMS: TKWY), hereinafter the "Company", or together with its group companies the "Takeaway.com", the leading online food delivery marketplace in Continental Europe and Israel, hereby reports its financial results for the first six months of 2019.

Performance highlights

Thousands unless stated otherwise	H1 2019	H1 2018	Change
			( % chang e, excep t
			where ind icat ed )
Restaurants (#)1,2
49,357	36,417	36%
Active Consumers1,2	16,725	12,556	33%
Orders3	71,017	41,733	70%
Netherlands	18,474	15,654	18%
Germany 4	27,919	15,058	85%
Other Leading Markets 5,6	24,624	11,021	123%
Returning Active Consumers as % of Active Consumers 1,2	64%	61%	3pp
Orders per Returning Active Consumer (#)	11.7	10.8	0.9
Average Order Value (€)	18.83	19.39	(0.56)
GMV (in € millions)	1,336.9	809.0	65%

1. Acquisition of the German Delivery Hero Businesses are included in the 2019 figure, as per 1 April
2. Number as at 30 June
3. Total excluding Israel would be 61,390 thousand orders in H1 2019 with 47% growth
4. The aggregated German orders, including pre-acquisition, would be 36,750 thousand for H1 2019 and 30,047 thousand for H1 2018, resulting in 22% order growth
5. Other Leading Markets comprise Belgium, Austria, Poland, Switzerland, Luxembourg, Portugal, Bulgaria, Romania and Israel
6. Other Leading Markets excluding Israel would be 14,997 thousand orders in H1 2019 with 36% growth

Thousands unless stated otherwise

H1 2019	H1 2018	Change

			( % chang e)
Gross revenue1
184,562	110,160	68%
Netherlands	57,862	46,695	24%
Germany	82,661	39,207	111%
Other Leading Markets	44,039	24,258	82%
Revenue	179,366	105,411	70%
Gross profit	133,726	87,213	53%
Marketing expenses1	(73,044)	(65,453)	12%
Adjusted EBITDA2,3	1,838	(6,144)	130%
Netherlands	29,003	25,267	15%
Germany	(6,703)	(20,927)	68%
Other Leading Markets	(20,462)	(10,484)	(95%)
Loss for the period	(37,446)	(14,730)	(154%)

1. Not adjusted for voucher expenses under IFRS 15
2. Includes allocation of headquarter expenses
3. IFRS 16 adjustment is effective since 2019, impact for H1 2018 is €1.1 million (Netherlands €0.6 million, Germany €0.3 million and Other Leading Markets €0.2 million)

2

Our people

Our people determine the success of our company and therefore we further invested in our organisation and staff to manage our growth strategy and to support the growth of our Scoober operations. Our period-end staff level increased to 4,497 FTEs as at 30 June 2019 from 2,672 FTEs as at 31 December 2018. This number included employees of the acquired businesses in Germany. Our staff number is comprised of 2,105 FTE across all markets and headquarters (2018: 1,432) and approximately 7,000 Scoober couriers, or 2,392 FTEs, as at 30 June 2019 (2018: 1,240).

3

CFO update and financial review

The financial information included in the CFO update and financial review is derived from the condensed consolidated interim financial statements, as integrated into this document.

Condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June

€'000	H1 2019	H1 2018	Change
				( % chang e)
Gross revenue	184,562	110,160	68%
Vouchers		(5,196)	(4,749)	9%
Revenue	179,366	105,411	70%
Cost of sales		(45,640)	(18,198)	151%
Gross profit	133,726	87,213	53%
Staff costs	(43,427)	(20,474)	112%
Other operating expenses	(109,977)	(76,800)	43%
Long-term employee incentive costs	(1,409)	(1,211)	16%
Finance income and expense, net	(7,912)	(437)	n.m.
Gain on joint venture disposal	6,030	-	n.a.
Share of profit / (loss) of joint ventures	-	(68)	(100%)
Loss before income tax	(22,969)	(11,777)	(95%)
Income tax expense	(14,477)	(2,953)	390%
Loss for the period	(37,446)	(14,730)	(154%)
Other comprehensive income / (loss) for the period	(720)	254	(383%)
Total comprehensive loss for the period	(38,166)	(14,476)	(164%)

Revenue

€'000	H1 2019	H1 2018	Change
			( % chang e)
Commission revenue	167,091	99,150	69%
Online payment service revenue	12,091	7,793	55%
Other revenue	5,380	3,217	67%
Gross Revenue	184,562	110,160	68%
Vouchers	(5,196)	(4,749)	9%
Revenue	179,366	105,411	70%

Takeaway.com generated total gross revenue of €184.6 million in the first six months of 2019, a 68% increase from €110.2 million in the first half of 2018. This increase was the result of order growth and higher average commission rates across our markets. Including adjustment for voucher expenses under IFRS 15, revenue was €179.4 million for the first half of 2019.

Commission revenue increased to €167.1 million in the first six months of 2019, representing 91% of total gross revenue, compared with €99.2 million for the first half of 2018. The average commission rate increased to 12.5% in the first six months of 2019 from 12.3% in the first half of 2018, mainly driven by an increase of our standard commission rates in Germany and Poland from the start of 2019 and an increasing share of Scoober orders, which generally carry higher commission rates.

As a result of further adoption of online payments by consumers, revenue from online payments increased to

€12.1 million in the first six months of 2019 from €7.8 million in the first half of 2018. The percentage of online

4

paid orders increased to 62%, representing €835 million in GMV, in the first six months of 2019 from 59% in the first half of 2018.

Other revenue grew strongly by 67% in the first half of 2019, reaching €5.4 million, driven primarily by growth in placement fees to restaurants, in line with our order growth.

Cost of sales and gross margin

Cost of sales was €45.6 million in the first six months of 2019, which represented a 151% increase from €18.2 million in the first half of 2018, driven by order growth and Scoober expansion. Delivery expenses amounted to €29.5 million, representing more than half of our cost of sales. Excluding the impact of Scoober, cost of sales increased by 67% in the first half of year 2019, in line with our revenue growth.

Our gross margin declined to 75% in the first six months of 2019 compared with 83% in the first half of 2018, primarily driven by the increasing share of Scoober orders.

Staff costs

Staff costs were €43.4 million in the first six months of 2019, representing a 112% increase from €20.5 million in the first half of 2018. This increase was mainly driven by the acquisitions in Israel and Germany and the result of continued investments in our organisation. The staff investments are required to manage our growth strategy and we believe that continued investments in our technology and product teams are necessary to innovate more rapidly. In addition, the growth of our Scoober offering also required additional staff and management support. Note that the costs of our Scoober couriers, are not included in staff costs but are classified as cost of sales.

Other operating expenses

Other operating expenses comprise marketing expenses, depreciation and amortisation costs and other expenses which are mainly related to staff.

€'000	H1 2019	H1 2018	Change
				( % chang e)
Marketing expenses		73,044	65,453	12%
Vouchers	(5,196)	(4,749)	9%
Marketing expenses, net	67,848	60,704	12%
Depreciation and amortisation	14,935	3,089	383%
Other	27,194	13,007	109%
Total	109,977	76,800	43%

The largest component of other operating expenses is marketing expenses. Marketing expenses increased by 12% to €73.0 million in the first six months of 2019 compared with €65.5 million in the first half of 2018. This increase is relatively modest compared with our order growth, which is a clear reflection that we increasingly benefit from economies of scale in our markets. Marketing as a percentage of revenue improved in all segments during the first six months of 2019 compared with the first half of 2018.

Our depreciation and amortisation expenses were €14.9 million in the first six months of 2019, which represented a 383% increase from €3.1 million in the first half of 2018. This increase consists primarily of €8.0 million related to the amortisation of intangible assets recognised as the result of acquisitions in recent years and €3.2 million in relation to the initial application of IFRS 16 in 2019.

Other operating expenses were €27.2 million in the first six months of 2019, which represented a 109% increase from €13.0 million in the first half of 2018. This increase was mainly driven by additional staff-related expenses in line with the growth in FTEs and investments in new organisational systems, and professional fees and legal expenses related to the acquisition of the German Delivery Hero businesses.

5