Just Eat Takeaway com N : Half Year 2022 Results

Amsterdam, 3 August 2022

Half Year 2022 Results

Just Eat Takeaway.com makes significant progress towards profitability in H1 2022

Northern Europe, North America, and UK and Ireland were Adjusted EBITDA positive in Q2 2022

Statement of Jitse Groen, CEO of Just Eat Takeaway.com: "After a period of exceptional growth, Just Eat Takeaway.com is now two times larger than it was pre-pandemic.Whilst this growth required significant investment, we have continued to focus on executing our strategy to build and operate highly profitable food delivery businesses. Our three largest segments, representing 90% of our Gross Transaction Value, were Adjusted EBITDA positive in the second quarter of 2022. Our path to profitability is accelerating and we expect to continue to materially improve our Adjusted EBITDA in the second half of this year and to be Adjusted EBITDA positive at a Group level in 2023."

Group highlights1

• H1 2021 was a record period for Just Eat Takeaway.com in Order and Gross Transaction Value (GTV) growth due to Covid-19 restrictions and significant investments in Delivery, in particular in legacy Just Eat markets. Exiting the pandemic has resulted in a 7% decrease in Orders in H1 2022 compared with H1 2021, which was offset by higher Average Transaction Value (ATV), consumer pricing improvements and positive currency movements, leading to stable GTV at €14.2 billion and strong revenue growth of 7% to €2.8 billion in H1 2022.
• In H1 2022, Adjusted EBITDA improved by 29% to minus €134 million (minus 0.9% of GTV). This year-on- year and sequential improvement clearly demonstrates the path to profitability, both on an absolute level and as a percentage of GTV.
• Northern Europe remained highly profitable, and North America and UK and Ireland were Adjusted EBITDA positive in Q2 as well.
• Further enhancing profitability is one of our highest priorities in 2022. Already actioned improvements will deliver Adjusted EBITDA guidance for 2022, with further initiatives to be implemented in H2 2022.

Segment highlights

• Northern Europe continued to generate significant profits with an Adjusted EBITDA of €124 million in H1 2022.
• In UK and Ireland, Adjusted EBITDA improved 70% to minus €18 million in H1 2022. The segment was Adjusted EBITDA positive in Q2 2022.
• Southern Europe, Australia and New Zealand (ANZ) saw notable reduction in losses and with peak investment now behind us, management expects profitability to continue to improve going forward.
• North America was Adjusted EBITDA positive in Q2 2022 and was close to Adjusted EBITDA break-even in H1 2022, despite fee caps in the US and Canada negatively impacting Adjusted EBITDA by €73 million. In July 2022, Just Eat Takeaway.com and Amazon entered into a commercial agreement in the US, offering Amazon Prime members a free, one-year Grubhub+ membership, strengthening Grubhub's competitiveness in the US market and representing a significant opportunity for growth.
• Brazilian market leader iFood continued to deliver strong growth in H1 2022. GTV grew 23% and Revenue grew 28% in H1 2022 compared with H1 2021.

1 On a combined basis

Other Financials

• The Company's cash and cash equivalents amounted to €882 million as per 30 June 2022. The current cash base is sufficient to finance the path to profitability. In addition, management is working on various options to further strengthen the Company's balance sheet and liquidity position, including potential sale of assets and refinancing alternatives.
• The Loss for the period on an IFRS basis was €3.5 billion, predominantly caused by a goodwill impairment of €3.0 billion related to the equity-funded acquisition of Grubhub in 2021. The impairment was due to the reduction in sector valuation comparables and the impact of increases in interest rates and equity volatility on technical valuation metrics. The Loss excluding the impact of the impairment amounted to €500 million in H1 2022, compared with €486 million in H1 2021.

Outlook

• Management confirms its guidance for FY 2022:

1. GTV to grow by mid-single digit year-on-year in 2022

• 1. 2022 Adjusted EBITDA margin in the range of minus 0.5% to minus 0.7% of GTV
• Management expects to reach positive Adjusted EBITDA in FY 2023, and the long-term objectives for the Company also remain unchanged.
• The Company, together with its advisors, continues to actively explore the partial or full sale of Grubhub. Management reiterates its intention to monetise its 33% stake in iFood if an appropriate offer is made that reflects the size and superior growth of this asset. In both cases, there can be no certainty that any agreement with any other parties will be reached or about the timing or terms of any such agreement(s). Any further announcements will be made as and when appropriate.

Just Eat Takeaway.com N.V. (LSE: JET, AMS: TKWY), hereinafter the "Company", or together with its group companies "Just Eat Takeaway.com", one of the world's largest online food delivery marketplaces, hereby reports its financial results for the first six months of 2022.

Performance highlights

	On a Combined basis1
	H1 2022	H1 2021	Change
Partners (# thousands)2	680	588	16%
Active Consumers (# millions)2	94	98	-4%
Returning Active Consumers as % of Active Consumers	68%	67%	0.8pp
Average Monthly Order Frequency (#)	2.9	2.8	0.1
Orders (# millions)
North America	171.4	191.4	-10%
Northern Europe	147.9	148.7	-1%
UK and Ireland	132.1	142.3	-7%
Southern Europe and ANZ	58.0	64.4	-10%
Total Orders	509.4	546.8	-7%
Average Transaction Value (€)	27.85	25.82	2.04
GTV (€ millions)
North America	5,832	5,811	0%
Northern Europe	3,722	3,646	2%
UK and Ireland	3,260	3,230	1%
Southern Europe and ANZ	1,373	1,429	-4%
Total GTV	14,187	14,117	0%

1. The Grubhub business was consolidated from 15 June 2021. These figures are presented as if the combination was completed on 1 January 2021 to provide comparable information for the full six months period. Operations in Norway and Portugal were discontinued from 1 April 2022 and in Romania from 1 June 2022. For this report, performance in Norway, Portugal and Romania are excluded as of 1 January 2022.
2. Number as at 30 June

		On a Combined basis1
				Constant
€ millions	H1 2022	H1 2021	Change	currency
Revenue2
North America	1,271	1,226	4%	-5%
Northern Europe	570	537	6%	6%
UK and Ireland	658	584	13%	10%
Southern Europe and ANZ	280	258	8%	6%
Total Revenue	2,779	2,605	7%	1%
Total Revenue less Order fulfilment costs2	1,111	924	20%	15%

1. The Grubhub business was consolidated from 15 June 2021. These figures are presented as if the combination was completed on 1 January 2021 to provide comparable information for the full six months period. Operations in Norway and Portugal were discontinued from 1 April 2022 and in Romania from 1 June 2022. For this report, performance in Norway, Portugal and Romania are excluded as of 1 January 2022.
2. For the reconciliation with the IFRS measures, reference is made to Appendix 2.

	On a Combined basis1
€ millions	H1 2022	H1 2021
Adjusted EBITDA
North America	(4)	(20)
Northern Europe	124	135
UK and Ireland	(18)	(58)
Southern Europe and ANZ	(110)	(149)
Head office	(127)	(96)
Total Adjusted EBITDA	(134)	(189)

1 The Grubhub business was consolidated from 15 June 2021. These figures are presented as if the combination was completed on 1 January 2021 to provide comparable information for the full six months period. Operations in Norway and Portugal were discontinued from 1 April 2022 and in Romania from 1 June 2022. For this report, performance in Norway, Portugal and Romania are excluded as of 1 January 2022.

Refer to Appendix 1 for a summary of all our Key Performance Indicators.

The combined number of Partners, (Returning) Active Consumers, Average Monthly Order Frequency, Orders and combined Average Transaction Value (ATV), Gross Transaction Value (GTV), Revenue, Revenue less Order fulfilment costs, Adjusted EBITDA are performance measures not defined under IFRS. Refer to our Glossary issued as part of our Annual Report 2021 for definitions and Appendix 2 for reconciliations to the closest IFRS-based equivalent where applicable.

These numbers are unaudited and may not sum due to rounding. Percentages used are based on unrounded figures.

Segment information

The four operating segments comprise: North America, Northern Europe, United Kingdom and Ireland, and Southern Europe and Australia and New Zealand (ANZ). North America comprises Canada and the United States. Northern Europe comprises Austria, Belgium, Denmark, Germany, Luxembourg, Norway, Poland, Slovakia, Switzerland and the Netherlands. The Southern Europe and ANZ segment comprises Australia, Bulgaria, France, Israel, Italy, New Zealand, Portugal, Romania, and Spain.

Grubhub in the US was consolidated in accordance with IFRS from 15 June 2021. The Slovakian business Bistro was consolidated from 30 September 2021 and is as such not included in the half year 2021 figures.

Operations in Norway and Portugal were discontinued from 1 April 2022 and operations in Romania were ceased from 1 June 2022.

The segment information presented below has been prepared on a combined basis, with the Grubhub business included as from 1 January 2021 and with Norway, Portugal and Romania figures excluded as of 1 January 2022 given the insignificance thereof. These numbers are unaudited.

We have non-controlling interests in the Brazilian business iFood, classified as an associate for accounting purposes and therefore not consolidated, with their results recognised as a single line item below operating result.

North America

	On a Combined basis1
	Six-month period ended 30 June
Millions unless stated otherwise	2022	2021	Change
Orders	171.4	191.4	-10%
Gross Transaction Value (€)2	5,832	5,811	0%
Revenue (€)3	1,271	1,226	4%
Adjusted EBITDA (€)	(4)	(20)	83%
• Adjusted EBITDA margin (%)	-0.1%	-0.4%	0.3pp

1. The Grubhub business was consolidated from 15 June 2021. These figures are presented as if the combination was completed on 1 January 2021 to provide comparable information for the full six months period. These numbers are unaudited.
2. Change at constant currency level for GTV is -8%
3. Change at constant currency level for Revenue is -5%

In North America, in the first six months of 2022 Orders decreased by 10% compared with record demand during Covid-19 lockdowns in the first half year of 2021. Reduced Order volume was most pronounced in the US. In July 2022, Just Eat Takeaway.com and Amazon entered into a commercial agreement in the US, offering Amazon Prime members a free, one-year Grubhub+ membership. This partnership strengthens Grubhub's competitiveness in the US market and represents a significant opportunity for growth.

Gross Transaction Value (GTV) was flat as a result of the increased Average Transaction Value (ATV), which increased to €34.03 in the first six months of 2022 from €30.36 in the first half year of 2021, driven by currency movements and increased food prices.

Revenue increased by 4% in the first six months of 2022, primarily driven by the expiration of several mandatory fee caps enforced by federal and local governments across the US and Canada, increased ATV and currency movements. Combined, the fee caps negative impact on revenue was €73 million in the first six months of 2022, down from €111 million in the first half year of 2021. Fee caps have now expired or been amended in most places. In July 2022, the San Francisco Board of Supervisors amended its fee cap, which is the latest in a growing trend among cities that have in recent months rolled back pandemic-era price controls. We continue to pursue legal and legislative remedies to eliminate or significantly reduce the financial impact from price controls and/or fee caps in the US.