HelloFresh : 2020 Capital Markets Day presentation

CAPITAL MARKETS DAY

2020

December 10th, 2020

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.

Agenda

1. Our E-Commerce Membership Model
2. Growth Levers
3. Sustainability
4. Financials & Midterm Outlook
5. Q&A

CAPITAL MARKETS DAY DEC 2020
3

Todays Speakers

Dominik	Ed	Thomas	Christian
Richter	Boyes	Griesel	Gärtner
CEO	CCO	CEO	CFO

CAPITAL MARKETS DAY DEC 2020
4

OUR MISSION

AT CHANGE THE

WAY PEOPLE EAT

FOREVER

OUR VISION

THE WORLD'S

LEADING, FULLY

INTEGRATED FOOD SOLUTIONS GROUP

CAPITAL MARKETS DAY DEC 2020
5

OUR MID-TERM

AMBITION

Grow to 10bn Revenue with attractive double digit AEBITDA margins

CAPITAL MARKETS DAY DEC 2020

Core Business Growth

Growth

Monetization

Investment

Increase penetration across our existing markets

CAGR

~15%

New Geographies and launching our US brands into International markets

Expand our different monetization strategies across all markets

CAGR

~5-7%

Launch and scale new and adjacent verticals

(both organic and via M&A)

1. Our E-Commerce Membership Model

CAPITAL MARKETS DAY DEC 2020
7

We operate an e-commerce membership model with some SaaS-like features and distinct advantages over e-commerce peers

E-Commerce

SaaSMembership

Classic

Model

E-Commerce

CAPITAL MARKETS DAY DEC 2020
8

While SaaS models typically have high revenue retention, ecommerce models benefit from lower customer acquisition cost and high re-engagement

SaaS
Revenue Retention over time
100%		Best-in-
		class SaaS
		Average
		SaaS
Y1	Y2	Y3

• High CAC, long payback period
• Little to no re-engagement
• Mostly smaller TAM

E-Commerce, Marketplaces

Revenue Retention over time

100%
Y1	Y2	Y3

• Low CAC, quick payback period
• High probability of re-engagement
• Often large TAM

CAPITAL MARKETS DAY DEC 2020	Illustrative only
9

While SaaS models typically have high revenue retention, ecommerce models benefit from lower customer acquisition cost and high re-engagement

SaaS
Revenue Retention over time
100%		Best-in-
		class SaaS
		Average
		SaaS
Y1	Y2	Y3

• High CAC, long payback period
• Little to no re-engagement
• Mostly smaller TAM

E-Commerce, Marketplaces

Revenue Retention over time

Y2

Y3

• Low CAC, quick payback period
• High probability of re-engagement
• Often large TAM

CAPITAL MARKETS DAY DEC 2020	Illustrative only
10

By defaulting our members to a weekly cadence upon joining, HelloFresh sees significantly higher order rates in the first year vs ecommerce peers

1Y Order Rates

(US only, based on Credit Card Data)

+71%

+34%

Best in class E-Commerce*

vs

Best in class Food Delivery**

vs

Source: TXN Data; US only

CAPITAL MARKETS DAY DEC 2020 * Wayfair, Zappos, Etsy, Chewy.com, Asos11 ** Doordash, Grubhub Seamless, Postmates

While SaaS models typically have high revenue retention, ecommerce models benefit from lower customer acquisition cost and high re-engagement

SaaS
Revenue Retention over time
100%		Best-in-
		class SaaS
		Average
		SaaS
Y1	Y2	Y3

• High CAC, long payback period
• Little to no re-engagement

E-Commerce, Marketplaces

Revenue Retention over time

100%

Y1

• Low CAC, quick payback period
• High probability of re-engagement

CAPITAL MARKETS DAY DEC 2020	Illustrative only
12

Also long-term order behavior is very strong compared to other major e-commerce players

Number of transaction (US only, based on credit card data)
Dec. 2018 indexed to 100%
		HelloFresh
			Peer Avg.

100%

75%

		Dec. 2018				Jan. 2020				Oct. 2020
Year 1				Year 2				Year 3

CAPITAL MARKETS DAY DEC 2020	Source: TXN Data; US only	13
* Wayfair, Zappos, Etsy, Chewy.com, Asos

As well as comparing favorably to other e-commerce models, our long term revenue retention is very stable and improving over time

Net Revenue Retention by Cohort (US only)

Q4 2019 - Q3 2020

40%

Q4 2018 - Q3 2020

Q4 2017 - Q3 2020

20%

Q4 2016 - Q3 2020

Q4

Q8

Q12

Q15

Year 1

Year 2

Year 3

Year 4

CAPITAL MARKETS DAY DEC 2020	Source: TXN Data; US only
14

Our Business Model offers a high degree of flexibility, as a result our customers follow different usage patterns

Trialist

Time

CAPITAL MARKETS DAY DEC 2020	Illustrative only
15

Our Business Model offers a high degree of flexibility, as a result our customers follow different usage patterns

Trialist

Seasonal

User

Time

CAPITAL MARKETS DAY DEC 2020	Illustrative only
16

Our Business Model offers a high degree of flexibility, as a result our customers follow different usage patterns

Trialist

Seasonal

User

Occasional

User

Time

CAPITAL MARKETS DAY DEC 2020	Illustrative only
17

Our Business Model offers a high degree of flexibility, as a result our customers follow different usage patterns

Trialist

Seasonal

User

Occasional

User

Frequent

User

Time

CAPITAL MARKETS DAY DEC 2020	Illustrative only
18

Our vertically integrated supply chain and high share of own brand allows us to capture the entire profit pool across the value chain

Margin Share along the Value Chain	Long-Term AEBITDA
margin potential

Grocery Retail	Producer	Brand Margin	Wholesale	Retail Margin	5-8%
Profit Pool	Margin	Margin

		Producer
Profit Pool	Margin

HelloFresh Margin

~ 15-20%

CAPITAL MARKETS DAY DEC 2020	Illustrative only
19

Due to full vertical integration and our membership model, the HelloFresh business model is vastly superior to standard ecommerce models

Order Frequency

Demand

Predictability

Vertical Integration

Share of Own Brand

Potential AEBITDA margin at maturity

Working Capital

HelloFresh		Standard E-commerce Models
High		Medium
High		Medium
High		Low
>90%		<20%
15% -20%		5% -10%
Negative		Positive

FCF Conversion		High		Low

CAPITAL MARKETS DAY DEC 2020
20

2. Growth Levers

CAPITAL MARKETS DAY DEC 2020
21

Our 3 Core Pillars of Growth and Profitability Remain

• TAM PENETRATION
  2 TAM EXPANSION
  3 BETTER MONETIZATION OF OUR CUSTOMER BASE

CAPITAL MARKETS DAY DEC 2020
22

Our 3 Core Pillars of Growth and Profitability Remain

• TAM PENETRATION
  2 TAM EXPANSION
  3 BETTER MONETIZATION OF OUR CUSTOMER BASE

CAPITAL MARKETS DAY DEC 2020
23

We are still tiny compared to the market opportunity we are serving

$3.3 trn

$4.3 bn

60%

Dinners

HFG 2020E		Total Food Market
Revenue1		across 14 HFG Markets2

CAPITAL MARKETS DAY DEC 2020	1.	Analyst Consensus for HFG Revenue (3568M€; FX Rate: EURUSD: 1.207; 02.12.2020)
24
2.	Citi Research (September, 2020)

We initially focussed on the dinner opportunity which constitutes the largest part of consumers' food budget

Dinner	Lunch		Breakfast

	~								~
	$ 2 Trn			~	$ 1 Trn			$ 0.3 Trn

CAPITAL MARKETS DAY DEC 2020	Split based on U.S. Bureau of	Labor Statistics research "Meal Appeal: Patterns Of Expenditures On Food Away From Home ", April 2020.
Source: Citi Research, Government Statistics, World Bank, Euromonitor (2019). *Euromonitor - Foodservice: includes cafés, full/limited-service restaurants,	&	25

cafeterias/kiosks.

We target the massive "dinner-at-home" opportunity with an unmatched value proposition: high affordability and high convenience at the same time!

High

Affordability

Meal Kit Delivery

Grocery

Stores

Grocery Delivery

Low		High
convenience		convenience
		Restaurant
	Restaurants	Food Delivery

	Low
CAPITAL MARKETS DAY DEC 2020	Affordability	26

Our current offering targets > 135m households, with penetration rates standing at low single digits

		US		International				Assumptions
TAM*		77m		60m		-	Top 60% of US households
			-	Top 40% INTL households

Active Customers

Current Penetration

2.5m2.5m

3.2 %4.2 %

• Households who placed at least one order in the last quarter

CAPITAL MARKETS DAY DEC 2020	* Total Addressable Markets in terms of customers
27

Online Food is years behind other e-commerce categories, providing us with a massive tailwind for future TAM penetration upside

					E-Commerce Adoption (US)*
							Food & Beverage
Consumer
					8.3%
electronics
> 50%
					3.9%

Apparel1.5%

> 25%

2015 2020E 2025E

US Food E-commerce Adoption Rates projected to grow +100% in the next 5 years

Similar evolution expected in INTL markets

Growing in line with E-commerce adoption would be enough to reach CAGR targets

CAPITAL MARKETS DAY DEC 2020	*Global X ETFs Research, Statista	28

In addition to overall category growth, we also have a track record of expanding market share, even in our most competitive markets globally

US1UKCanada2

+1pp	+7pp	+4pp
HFG Meal Kit Market Share (%)3	HFG Meal Kit Market Share (%)3	HFG Meal Kit Market Share (%)3

Q1 20

Q3 20

Q1 20

Q3 20

Q1 20

Q3 20

CAPITAL MARKETS DAY DEC 2020

1. HFG Share includes HelloFresh, GreenChef & EveryPlate

2. HFG Share includes HelloFresh & ChefsPlate

HFG

Other competitors

29

3. Source: Aggregated credit card data, internal analysis & company data

Our Growth flywheel has allowed us to scale much more efficiently over time

						Improving
				Lower cost		Product &
MORE				structure		Selection
DATA

GROWTH

Better

Better

customer

Marketing

experience

leverage

Higher order

rates

STRONG BALANCE

ACCESS TO THE

SHEET

BEST TALENTS

MORE TECHNOLOGY

30

Continued menu expansion helps us to serve a broader range of taste, lifestyle, and dietary preferences

Menu

6

9

15

28

>100?

Options

Category

CLASSIC

+

FAMILY,

+

CALORIE

+

QUICK &

+

VEGAN,

SEASONAL

GLUTEN FREE,

Options

VEGGIE

SMART

EASY

BOXES

READY-TO-EAT

2017

2018

2019

2020

2025

CAPITAL MARKETS DAY DEC 2020
31

Ongoing improvements in the quality of our service are beneficial to opening up new customer segments as well as serving existing customers better

Lead Time from 1st Order to Delivery*

- 2.6 days	Faster delivery times unlock additional customer segments

-27%

Particularly more infrequent users of HelloFresh order more often as the time from order to delivery improves

Ambition:further speed up deliveries to our customers, especially for their 1st order and upon re-joining

Q1-2016Q1-2020

CAPITAL MARKETS DAY DEC 2020	Note: *Mature Markets only,	like-for-like comparison; Source: Company Data
	32

Over time, our growth in household penetration benefits from a strong tailwind from reactivating lapsed customers

Reactivations in most mature markets* % Share of Total Conversions

50%

34% 40%

25%

11%

Reactivations already reached ~ 1/3 of Conversions in Mature Geos, pre-Covid

Reactivation share will continue to grow, driven by:

• Higher base of former customers
• Increase in market maturity
• Increased CRM sophistication
• Product and service improvements

2015

2018

2020 Q1

2025

CAPITAL MARKETS DAY DEC 2020	Note: *Most Mature Markets: DE, GB, NL, AU; Source: Company Data
	33

Investing in more choice for consumers and better service levels helped us lower CACs and improve Marketing payback periods

Marketing Payback Periods	Q2-19
(Cohort Contribution Profit over time)

Q2-18

Q2-17

6M

12M

Break-Even Periods now firmly within 6 months (pre-pandemic!)

Continuous Improvement of CACs and Order Rates over time

Main Drivers: more attractive product offering, better service levels and higher share of reactivations

CAPITAL MARKETS DAY DEC 2020	Source: Company Data
34

There is a clear path to doubling our penetration levels in the mid-term

TAM Penetration Drivers	>2x
(indicative only)

2020		New Customers		Reactivations		Service Level		Product
Penetration						Improvements		Improvements

Mid-Term

Penetration

CAPITAL MARKETS DAY DEC 2020
35

Our 3 Core Pillars of Growth and Profitability Remain

• TAM PENETRATION
  2 TAM EXPANSION
  3 BETTER MONETIZATION OF OUR CUSTOMER BASE

CAPITAL MARKETS DAY DEC 2020
36

OUR VISION

We want to become the

world's leading, fully

integrated Food Solutions Group

CAPITAL MARKETS DAY DEC 2020
37

Our TAM is highly dynamic: over time, we have structurally expanded the number of households we can serve across the globe

Our Target Audience	+10%	77 M

US households

International households

Australia

60 M

49 M

35 M

2015

2016

2017

2018

2019

2020

CAPITAL MARKETS DAY DEC 2020	Illustrative only
38

We have a successful track record of launching new geographies, thereby expanding our TAM significantly

2011

2015

2020

More to come...

CAPITAL MARKETS DAY DEC 2020
39

We score potential new markets across a number of dimensions to assess their relative attractiveness

#HOUSEHOLDS

How many relevant, addressable households has a certain market?

INCOME LEVEL

How many households meet or exceed a certain income level?

E-COMMERCE

What is the e-commerce adoption rate?

ADOPTION RATE

SUPPLY CHAIN	Can we build a sophisticated supply chain with the right partners?
INFRASTRUCTURE

CAPITAL MARKETS DAY DEC 2020
40

We have a proven playbook to support the launch of new geographies, making it a very attractive risk-adjusted growth opportunity

TECH

PROCUREMENT	PRODUCT

LOGISTICS

MARKETING

LOCAL

TEAMTOOLS &

PRODUCTION	INFRASTRUCTURE

Proven Playbook of

Experiences, Technology, Data and Relationships that we can leverage in every country for every brand

CAPITAL MARKETS DAY DEC 2020
41

In the US, we are strategically set-up to capture 60% of households - serving meals from value offerings to premium & specialty diets

HelloFresh Group

Meal Kits

Prepared Meals

"Value"		"Affordable Premium"		"Specialty"		"Fully Prepared"
		(classic, veggie, family, etc.)		(vegan, gluten-free, etc.)

$ 5

Price / serving

$$$ 12

CAPITAL MARKETS DAY DEC 2020
42

Our value tier reached a $200m revenue run-rate 2.5 years after launch, making it one of the fastest growing US e-commerce brands

Net Revenue

>200m USD

annual run rate

Q2-18Q3-18Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20

EveryPlate reaches an additional 20%-30% of HHs at an attractive $5 per meal price point

Little to no cannibalization of HelloFresh brand

Our mid-termambition:EveryPlate should be on par in customer numbers with HelloFresh

CAPITAL MARKETS DAY DEC 2020
43

A key dimension of our TAM expansion is Convenience - our investments in reducing cooking time have given us mass market appeal

Traditional		Original		Convenient		Rapid		Fully Prepared
Cooking		Meal Kit		Meal Kit		Meal Kit		Meal

Time to table

>1hr	30-40 mins	20-25 mins	10-15 mins	2-5 mins
Cooking enthusiasts					Convenience seekers

CAPITAL MARKETS DAY DEC 2020	Illustrative only
44

HelloFresh acquires Factor75, Inc., a US-basedDirect-to-ConsumerReady-to-Eat business*

CAPITAL MARKETS DAY DEC 2020	Note: *The transaction has not been closed yet. The closing of the transaction is subject to customary conditions precedent, including inter alia the expiry of	the	45
	waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act, and is currently expected to occur within the next few months.

Factor over-indexes for 1 P households, male demographics and for the lunch opportunity, allowing us to go after a distinct new customer segment

Gender

HH Size

Share of meals*

-12 pp

27 pp

HF

+22 pp

Factor

Difference in

Gender Split

Share of Singles

+49 pp

HF FactorHF FactorLunchDinner

Access a new customer segment		Cross-sell offerings to existing HelloFresh
	customers

CAPITAL MARKETS DAY DEC 2020	Note: All HF data is US-only; *	Question: "Which meal occasions are you using [Factor/HF] for? (select all that apply)", Source: Company Data, Customer Survey	46

So far in 2020 Factor has grown even faster than HelloFresh US, and has significant headroom to further expand

Net Revenue

Named in Inc. magazine's list of America's fastest growing private companies**

+115%	*

Ready-to-Eat & Factor Highlights

D2C RTE is a nascent category: c. 5x smaller

~ 100m USthan meal kits and several years earlier in the

adoption curve

Factor stands out with exceptional product quality & growth rates

Platform to scale: production capacity of $500mm ARR to support continued strong growth over coming years

2017		2018		2019		2020E

CAPITAL MARKETS DAY DEC 2020	Note: * CAGR 2017-2020E;	**MarketScreener; Source: Company Data
	47

Not only does our multi-brand strategy expand TAM, it will also provide synergies across the value chain to further grow overall margin levels

Synergies

• • More tailored brands
• Use of shared media impressions
• Retargeting customers with more than one brand

Customer

acquisitionCustomer Retention

Key drivers of

Growth &

Profitability

Synergies

• More tailored product to customer needs
• Reactivate customers between brands
• Shared learnings on product development

Contribution Margin

Synergies

• Fulfilment center utilization
• Leverage scale in supplier networks
• Ingredient yield optimization

HelloFresh Group Brand Portfolio

Introducing these new brands to our International segment offers a huge growth opportunity

CAPITAL MARKETS DAY DEC 2020
49

Our 3 Core Pillars of Growth and Profitability Remain

• TAM PENETRATION
  2 TAM EXPANSION
  3 BETTER MONETIZATION OF OUR CUSTOMER BASE

CAPITAL MARKETS DAY DEC 2020
50

We have identified a large opportunity to capture a bigger share of our customers' monthly food budget

Current Share capture (illustrative only)

HelloFresh's focus today

Dinner50%

Lunch7%

Snacks2%

Breakfast1%

Appetizers, Special

Occasions, Ready

Meals, Desserts

Sandwiches, Soups, Salads

Fruits, Nuts, Chocolate Bars

Cereal, Smoothies, Dairy

CAPITAL MARKETS DAY DEC 2020	Illustrative only
51

The revenue share from add-on products has increased gradually as a result of our assortment expansion

Revenue Share from Add-on Products (BE+NL)

GROUP AMBITION

	2018	2019	2020E	2025E
				15-20%
	3%	4%	5%
Assortment*	4	10	23	500 - 2,000

CAPITAL MARKETS DAY DEC 2020	Note: * Average per year; Source: Company Data
52

HelloFresh Market offers our customers a range of premium add-ons from breakfast options, snacks, lunch, appetizers & sides

CAPITAL MARKETS DAY DEC 2020

3. Sustainability

CAPITAL MARKETS DAY DEC 2020
54

OUR AMBITION

is to provide the most

sustainable food solution at scale to our customers across all of the markets we are operating in.

While our external ESG ratings have improved recently we are still not in the top group

2019

Governance

ISS

MSCI

Sustainalytics

ESG Risk Rating Distribution

8A

25.9

Environment

Social

6

6

NEGL LOW MED HIGH SEVERE

ESG Industry Rating Distribution

				23%	25%	25%
Today								Percentile (1st lowest risk)
7		13%
Governance					9%
					5%		55th
								Industry
Environment	4	0 %
Social	5	CCC	B	BB	BBB	A	AA	AAA	Sub-Industry	49th

CAPITAL MARKETS DAY DEC 2020
56

There is a disconnect between our external ESG ratings and our actual performance - which we will work towards closing

Reality based	Perception
on internal	based on
data	disclosure

We need to work on our disclosure and reporting in order to improve our sustainability ratings with 3rd party rating

agencies and to become eligible for ESG focused funds.

CAPITAL MARKETS DAY DEC 2020
57

What does sustainability mean for us at HelloFresh?

1	Leverage our Direct to Consumer supply chain to provide fresh food to our customers
in the most sustainable fashion, while ensuring safety, quality, and freshness

• Promote the wellbeing of our customers, employees and suppliers

3	Actively manage and mitigate the risks that could affect HelloFresh's business
performance and sustainability efforts

CAPITAL MARKETS DAY DEC 2020
58

How do we approach sustainability related topics?

Avoid

Reduce

Replace

Offset

CAPITAL MARKETS DAY DEC 2020
59

On the environmental side we have identified three core pillars which are most critical for our business model

	FOOD WASTE		CARBON EMISSIONS			PACKAGING
			& ENERGY
Grams of food waste per		C02 emissions per €			Grams of paper and
	€ revenue			revenue		plastic packaging per

CAPITAL MARKETS DAY DEC 2020
60

On the environmental side we have identified three core pillars which are most critical for our business model

FOOD WASTE

Grams of food waste per

€ revenue

CAPITAL MARKETS DAY DEC 2020
61

If Food Waste would be a country, it would be the 3rd largest CO2 emitting country in the world

FOOD WASTE

1/3 of food produced for human consumption

never reaches the consumer's table

10.5

Food production accounts for 26% of global

6.1

greenhouse gas emissions1

Gtonnes

4.4

C02

2.8

Food waste by itself is responsible for ~8% of

GHG emissions2

USA

Food

India

China

Wastage

CAPITAL MARKETS DAY DEC 2020	1.	Hannah Ritchie, Our	World in Data. 2020, March 18th . Food waste is responsible for 6% of global greenhouse gas emissions.
62
2.	Kelly Oakes, BBC. 2020, Feb. 26th. How cutting your food waste can help the climate

Our supply chain is significantly more sustainable than comparable grocery supply chains

Traditional supply chain	HelloFresh supply chain

FOOD WASTE

A vertically integrated

supply chain

Day 1: Producer

Day 2: Wholesaler

2% waste

Day 4: Warehouse

3% waste

Day 6: Store

11% waste

Day 10: Home

23% waste

Day 1: Producer

Day 2

Day 3: Home

• STARTING WITH CONSUMER
• FASTER AND FRESHER
• NO FOOD WASTE

Better for the

Environment

Better for Customers

More Margin for

HelloFresh

CAPITAL MARKETS DAY DEC 2020
Source: Company information;	United States Department of Agriculture; Canaccord Genuity estimates
	63
Note: 5% "Farm to Retail" waste	data split to wholesale and warehouse.

We reduce Food Waste at both, the supply chain and at the consumer level

FOOD WASTE

Food waste per € revenue in Operations1Grams of food waste per meal at Home3

				-21%
-69%

1.75g

0.54g4

	Supermarkets2		HelloFresh		Supermarkets		HelloFresh
			1.	In the first 9 months of 2020
			2.	Based on published figures from the top 12 leading traditional retailers worldwide
CAPITAL MARKETS DAY DEC 2020	3.	Based on study conducted across 4 geographies in cooperation with the Wuppertal Institute; including 1000 households and comparing food waste
	when shopping is done in the supermarket vs. Hellofresh					64

4. Year to date data collection is not 100% complete due to complications caused by the Covid-19 pandemic

YTD Food Waste per € revenue has decreased vs the 2019 baseline despite higher levels of operational uncertainty

Food Waste per € revenue

FOOD WASTE

		-10%
							Higher uncertainty due to Covid-19, resulting in
0.6g
					0.54g		lower accuracy of our forecasting algorithms

Strategic buffers to avoid potential stock out

Further efficiency gains through shorter lead times

20192020*

CAPITAL MARKETS DAY DEC 2020
Source: Company Information
	65
*Year to date data collection is	not 100% complete due to complications caused by the Covid-19 pandemic

On the environmental side we have identified three core pillars which are most critical for our business model

CARBON EMISSIONS

& ENERGY

C02 emissions per €

revenue

CAPITAL MARKETS DAY DEC 2020
66

What are our CO2 Emissions?

18 HelloFresh Production Facilities

• Energy and Gas consumption
• Utility bills billed directly to HelloFresh or indirectly (hidden in the total rent price)

52.33 million Deliveries*

• Gasoline consumption & CO2 emissions
• On a per unit of weight delivered by carrier (provided by local logistics teams)

Corporate travel

& 10 Offices Globally

• Flights/Trains/Busses/Rent al Cars: n° of trips and their distances or financial costs
• Based on data from KDS, Comtravo, Uber, Oracle, etc.

CAPITAL MARKETS DAY DEC 2020	*First 9 Months of 2020

67

Reducing CO2 in our facilities: In comparison to food retailers, we do not have to heat, light and cool thousands of stores.

Scope 2 C02 Emissions per € revenue

-84%

23.

3.7g

Supermarkets1HelloFresh2

CAPITAL MARKETS DAY DEC 2020	1. Based on published figures	from the top 12 leading traditional retailers worldwide
	2. Source: Company Information

CARBON EMISSIONS

& ENERGY

68

CARBON EMISSIONS

Our per box CO2 emissions have decreased 47% YTD compared & ENERGY to our 2019 baseline driven by higher capacity utilization

Scope 2 CO2 Emissions per € revenue

-47%		Higher capacity utilization has a positive
		impact on per box CO2 emissions

7.

Increased use of Green Energy across markets

3.7g

Not included: higher route density during delivery also has a positive effect on per box emissions

20192020

CAPITAL MARKETS DAY DEC 2020	Source: Company Information
	69

We Are the 1st Global Carbon-Neutral Meal Kit Company

CARBON EMISSIONS

& ENERGY

Step 1

Avoid Emissions where possible

Step 2

Implement

renewable energy

in operations &

delivery

Step 3

Emissions

0%

We offset 100% of our direct carbon emissions from…

➔ Internal operations and offices

➔ Emissions from corporate travel

➔ Delivery to customers

Offset unavoidable

emissions

Emission

Pre 2020

2020 onwards

CAPITAL MARKETS DAY DEC 2020
70

On the environmental side we have identified three core pillars which are most critical for our business model

PACKAGING

Grams of paper and plastic packaging per

CAPITAL MARKETS DAY DEC 2020
71

We minimize Packaging Waste through our direct supply chain and by constantly researching how to make our packaging more sustainable

From our Packaging Test Labs

Water-filled ice packs

				In use across
Eliminate ice pack					all INTL
			markets*
transit microplastics in
gel filling
		2019			2020

Recycled paper cooler pouch

Reduces in-box plastic by ~50%

2019		2020

PACKAGING

Ambition

Roll-out across

all INTL

markets

2021

CAPITAL MARKETS DAY DEC 2020	*Exception:	Due to long-haul shipping CA uses gel-based ice packs in certain occasions
72

Overview of ...

PACKAGING

EcoLean dairy pouch

Pastas, grains & herbs

Apeel

NEW

WIP

TRIAL

Plastic reduction by 70%	Move to paper packaging				Eliminate need for packaging

CAPITAL MARKETS DAY DEC 2020
73

Case Study DACH: Over time we have developed one of the most sustainable packaging solutions for our customers

2019

2020

13%

26%

68%

PACKAGING

81%

➔ Introduction of paper based cool pouches,➔ Introduction of EcoLean

reduction of inbox plastic by ~50%	➔ Moving to paper based packaging on dry goods
	➔ Started tests with Apeel

CAPITAL MARKETS DAY DEC 2020

Paper

Plastic

Other

74

Despite operational challenges due to Covid-19 we are very proud of our impact and our ecological footprint

Our Highlights So Far

Significant reduction in food waste vs. traditional food retailers

Substantially lower C02 emissions vs. traditional food retailers

Massive push for electrifying our delivery fleet in the BENELUX

First global carbon-neutralmeal-kit company

Significant food donations to charities

Our

sustainability commitments for the future

• Achieve ISO-50001 certification
• • Certification for energy efficiency management

• Materiality Assessment
• • Improve compliance with sustainability reporting

• Life Cycle Assessment (LCA)
• • Identify areas of improvement or risk in the life-cycle

• Supply Chain Risk Mitigation
• • Run extensive assessment of HF supply chain

• Plastic Bank
• • 3-yearsinvestment to launch 3 recycling sites

• Energy Strategy
• • Strong focus on solar panel installation & green energy

4. Financials and mid-term outlook

CAPITAL MARKETS DAY DEC 2020
77

We have a track record of consistently best-in-class growth rates since inception

Revenue over time (€)

>100%**

1.81b

+56%* 1.28b

905m

597m

+410%*305m

2m 14m 70m

2012

2013

2014

2015

2016

2017

2018

2019

2020E**

CAPITAL MARKETS DAY DEC 2020	Note: * CAGR; 2012 to 2015; 2015 to 2019;	78
** 2020E is indicative only and based on the Company's CC 2020FY growth Guidance

One of the few ecommerce companies firmly profitable andFCF positive

AEBITDA (€)
		12.5 %
		311 m
	2.6 %
(4.3)%	47 m
(55 m)
2018	2019	9-month
2020

Free Cash Flow (€)		13.7 %
		361 m
(5.8)%	(0.7) %
(74 m)	(12 m)
2018	2019	9-month
2020

CAPITAL MARKETS DAY DEC 2020	Source: Company Data
	79

Our midterm ambition is to grow to 10bn revenue while maintaining our attractive margin and FCF profile

REVENUE	€10 BN

AEBITDA MARGIN	10-15%

FCF Conversion	Best-in-class

CAPITAL MARKETS DAY DEC 2020
80

The Covid situation has expanded our 2020 AEBITDA margin by c. 3% points

	Q4 2019*	Jan - Sep 2020*
Revenue Growth	39% (in CC)	105% (in CC)
Contribution Margin	29.1%	27.1%
Marketing Spend	(17.9%)	(12.3%)
G&A**	(7.8%)	(3.8%)
AEBIT	5.3%	11.3%
AEBITDA	7.5%	12.5%

Key Drivers

More than doubling due to customer growth, AOV and order rate growth

c. 2% points compression from higher fulfilment costs

1. 5-6%points below trend due to low CACs & reduction in marketing spend

c. 3-4% points scale leverage

c. 5% points expansion, of which c. 3% directly due to Covid

CAPITAL MARKETS DAY DEC 2020	Note: * All excl. SBC
81
	**including other income and	expenses

Retention has stabilised above previous year's level, also when things returned towards normality during the summer

Lifetime in # orders of 20-week-old cohorts (by starter week)

The Netherlands

Australia

+> 20%

+Mid-teens%

W14		W24		W14		W24

• Both of these countries were relatively far back to normalcy during the summer
• Each starter cohort continues to trend at higher retention/ lifetime value than previous years' cohorts, including cohorts which started during the more "normal" summer month of 2020

CAPITAL MARKETS DAY DEC 2020	Source: Company Data
	82

In 2021 we expect continued robust growth, combined with normalization of contribution margin and marketing expenses

		Jan - Sep 2020*	2021E
Revenue Growth		105% (in CC)	20-25%(in CC)
Contribution Margin		27.1%	28	- 29%
Marketing Spend		(12.3%)	(15	- 17%)
G&A**		(3.8%)	~(4%)
AEBIT		11.3%	7-10%
AEBITDA		12.5%	9-12%

Key Drivers

Continued customer growth;

c. 3% impact of Factor acquisition

Phase out of Covid effects; impact of new FCs ramp-up & new brands/ geos

Continued market penetration, CACs back towards pre-Covid levels

	Note: * All excl. SBC
CAPITAL MARKETS DAY DEC 2020	**including other income and expenses	83
This is a first indicative outlook for 2021; it does not represent formal guidance, which the Company will only provide concurrently with the

publication of its FY2020 financial statements on 2 March, 2021, in line with past practice.

2021 revenue growth is expected to be driven by customer growth; normalization effects in AOV and Average Order Rate are largely offset

Active

Customers

Q3

2020

5m

Indicative expectations for FY 2021

• De-bottleneckedcapacity allowing more forceful customer acquisition
• Significant reactivation opportunity
• Ramp-upof new geographies and brands (incl. Factor)

Average

Order Value

Average

Order Rate

€49.7

3.9

➔

~ ➔

➔

~ ➔

➔

Increasing contribution from add-ons

Higher impact of price incentives

Roll-out of EveryPlate in Intl. markets

Seasonality during summer similar to pre-Covid periods Some normalization of order rate in H2

CAPITAL MARKETS DAY DEC 2020
84

Additional indicative 2021 considerations

Effective Tax Rate*

Comment

➔ Remaining NOLs in majority of key markets used by 2021 (and

partly capitalized in 2020)

Tax

c. 27 - 28%

➔ Effective tax rate thereafter approaching blended long-term

Group tax rate of c. 29%

➔ Continued ramp-up of multiple FCs across US and Intl

Capex

2021 Capex

➔ Selective capacity expansion within existing FCs

c. €130 - 150m

➔ Further automation investments

CAPITAL MARKETS DAY DEC 2020	*Note: Based on current corporate income tax rates in HFG's markets; i.e. does not include any potential impact of tax rate increases
	85

Our 2021 Capex ensures our infrastructure and capabilities can meet our mid-term ambitions

Capacity Plans: Theoretical max. production volume

US

Intl.

+ ~100%

+ ~100%

• Theoretical production capacity to double over c. 18 months
• • Relatively linear increase over that period
• In addition
• • Further build out of automation capabilities
  • We continue to compound our "unfair" advantage in tech, data science and growth marketing

Q3 2020

Q1 2022

Q3 2020

Q1 2022

CAPITAL MARKETS DAY DEC 2020
86

OUR MID-TERM

AMBITION

Grow to 10bn Revenue with attractive double digit AEBITDA margins

CAPITAL MARKETS DAY DEC 2020

Core Business Growth

Growth

Monetization

Investment

Increase TAM penetration across our existing markets

CAGR

~15%

New Geographies and launching our US brands into International markets

Expand our different monetization strategies across all markets

CAGR

~5-7%

Launch and scale new and adjacent verticals

(both organic and via M&A)

5. Q&A

CAPITAL MARKETS DAY DEC 2020
88

We are happy to take your questions

Please raise your questions via the Q&A section

Dominik	Ed	Thomas	Christian
Richter	Boyes	Griesel	Gärtner
CEO	CCO	CEO	CFO

CAPITAL MARKETS DAY DEC 2020
89

Thank you!