Serving every customer's takeaway moment - H1 2018 Results 31 July 2018 - Just Eat plc
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Serving every customer’s takeaway moment H1 2018 Results 31 July 2018
H1 2018 results: Highlights
Group revenue £358m +45%: marketplace +24%, delivery +238%
• Just Eat Group in good health
o Restaurant estate 93,700, +14% vs Q4/17
o Active customers 24.0 million, +12% vs Q4/17
o 104m orders +30%
• Strong revenue growth
o Group revenue £358 million +45% yoy
o Group uEBITDA £83 million +12% yoy
• Marketplace: Strong profitable growth +24%
o UK: Hungryhouse integration complete
o ANZ: Competitive market with highly urbanised population
• Delivery: Accelerating service growth +238%
o Canada: Just Eat Canada merged with SkipTheDishes
• Investment: Initiatives driving growth
o Confidence from H1 learnings
o Increased growth investment from £50 million to £55-£60 million
2 Just Eat Group H1 2018 Results
Serving every customer’s takeaway moment
Agenda
01 H1 Financial highlights
• Paul Harrison, Chief Financial Officer
02 Operational review and outlook
• Peter Plumb, Chief Executive Officer
03 Q&A
3 Just Eat Group H1 2018 Results
01 H1 Financial highlights
Paul Harrison, CFO
4 Just Eat Group H1 2018 Results
Strong first half performance
uEBITDA
Orders Revenue uEBITDA Margin
m £m £m %
30% 45% 12% 670bps
93.1
69.6
36.8
54.6
80.4 104.4 246.6 358.4 73.6 82.7 29.8 23.1
H1 2017 H1 2018
• Our non-UK businesses now represents 49% of Group revenue (H1 2017: 43%)
5 Just Eat Group H1 2018 Results
Group revenue growth – 45% headline, 42% organic
+42%
+45
% +46%
Hungryhouse
£8.3m
FX
£113.7m
£1.9m
£246.6m £244.7m £358.4m £350.1m
H1 17 H1 17 H1 18 H1 18 H1 18
cc growth reported organic
6 Just Eat Group H1 2018 ResultsReconciling order growth and revenue growth
5%
5%
5%
% growth
27% 42%
Organic Higher AOV, Delivery Booking Organic
order commission fees & fees revenue
growth commission growth
7 Just Eat Group H1 2018 ResultsThis year’s new investments have advanced our
understanding of our opportunity
March July
Initiative 2018 Progress after 6 months Successes & Learnings 2018
view view
Consolidated in
Driver recruitment at scale
large Canadian cities
Scaling in Skip able to scale beyond
Skip Canada Entered several smaller
Canada, although more to
The £20m Canadian cities £25-30m
Australia do in ANZ
Dishes
launch Skip delivery logistics
Planned extension to
launched in Sydney
selected UK markets
& Melbourne
Reduced courier firm costs
Scaling Courier firms in
delivery for new catchments Delivery cluster efficiencies
UK £20m £20m
branded
New restaurant supply Optimal mix of brands &
restaurants independents
New promotional campaigns
Building our Growing demand for online
Mexico £10m Added restaurant supply £10m
brand ordering
Launched new cities
£50m £55-60m
8 Just Eat Group H1 2018 ResultsUnited Kingdom – strong H1 performance
Highlights
• Revenue growth of 30% in the period
Active
Orders Revenue uEBITDA1 customers AOV • Hungryhouse fully integrated, ahead of plan, on 22 May
m £m £m m £ • Achieved significantly improved delivery economics
• uEBITDA margin of 49% reflects investment in delivery
20% 30% 22% 16% 6%
initiatives
18.54
17.51
140.1
182.7
73.4
89.4
11.3
49.5
59.3
9.7
H1 2017 H1 2018
1. uEBITDA excludes intra-Group franchise fees but includes an allocation of Group costs, all of which net out at a consolidated level.
9 Just Eat Group H1 2018 ResultsCanada – strong performance from SkipTheDishes
and broader group leverage of its service
Highlights
Active
Orders Revenue1 uEBITDA1,2 customers AOV • 189% order growth drove revenue growth of 227%
m £m £m m £ • Launched SkipTheDishes outside of Canada for the first
time
189% 227% 183% 114% 4%
• Winnipeg becoming the group hub for courier
management
• Just Eat Canada and SkipTheDishes businesses
combined
18.12
18.96
12.7
22.3
73.0
3.0
1.4
4.4
-3.0
-8.5
H1 2017 H1 2018
1. Calculated using a constant currency basis. 2. uEBITDA excludes intra-Group franchise fees but includes an allocation of Group costs, all of which net out at a consolidated level.
10 Just Eat Group H1 2018 ResultsAustralia & New Zealand – responding to a
competitive market
Highlights
• Menulog remains a strong brand
Active
Orders Revenue1 uEBITDA1,2 customers AOV • Launched delivery services in Sydney and Melbourne
m £m £m m £
12% 2% 28% 7% 3%
24.09
23.35
22.1
21.6
6.1
4.4
2.9
2.7
7.4
6.5
H1 2017 H1 2018
1. Calculated using a constant currency basis. 2. uEBITDA excludes intra-Group franchise fees but includes an allocation of Group costs, all of which net out at a consolidated level.
11 Just Eat Group H1 2018 ResultsInternational – investing in marketplace growth
Highlights
• Strong order growth in Italy, Spain and Mexico
Active
Orders Revenue1 uEBITDA1,2 customers AOV • Rebranded France to Just Eat from Allo Resto
m £m £m m £ • Acceleration in Swiss order growth
• Investment in Mexico delivering growth but driving lower
36% 35% 4% 28% 2%
segmental EBITDA
19.05
19.38
19.0
25.9
60.2
81.1
4.5
4.3
6.8
5.3
H1 2017 H1 2018
1. Calculated using a constant currency basis. 2. uEBITDA excludes intra-Group franchise fees but includes an allocation of Group costs, all of which net out at a consolidated level.
12 Just Eat Group H1 2018 ResultsiFood – building a leading position in the exciting
Brazilian market
Highlights
• Year-on-year order growth of 107%
Orders1 Revenue1,2 uEBITDA1,2 • 8 million orders a month run rate
m £m £m • Increased Just Eat stake up to 33.3%
107% 97% 5%
21.7
45.0
26.7
52.7
2.2
2.1
H1 2017 H1 2018
1. On a 100% ownership basis. 2. Calculated using a constant currency basis.
13 Just Eat Group H1 2018 ResultsH1 2018 net cash to net debt reconciliation, £m
1 Jan 2018 30 Jun 2018
55.5
Net cash
generated
from
Operating
activity
202.1
28.6
17.0 Capex
212.9 20.0 Other Net debt
0
Net cash 7.5
6.8
14 Just Eat Group H1 2018 Results02 H1 Operational review and outlook
Peter Plumb, CEO
15 Just Eat Group H1 2018 ResultsJust Eat Group’s roadmap for long-term growth
Serving every customer’s takeaway moment
1 2
Build our Engineer
£16bn delivery services £41bn
marketplace to
market1 be world-class to complement our market1
marketplace
3
Lead a world-
class digital global
team, supporting
extraordinary local
customer experts
1. Source: OC&C, Euromonitor, UBS Research 2017 (Just Eat countries excluding LatAm £26bn
16 Just Eat Group H1 2018 ResultsBuilding our marketplace to be world-class
Good progress: better app, famous brands and Orderpad rollout
Apps: Build to be best way to Brand: Grow awareness in Orderpad: target 75% core
order takeaway Europe1 market restaurants
15% 24%
H2 2017 H1 2018 +11k installed in H1
Our service is easier to use… …known by more people… …helping our partners run
better businesses.
1. Source: Hall and Partners Brand Tracker (weighted) spontaneous brand awareness
17 Just Eat Group H1 2018 ResultsEngineer delivery services to complement marketplace
Increased investment is gaining us valuable scale and learnings
UK: Delivery rollout powered Skip: Invest to go faster Customers get the best of
by 3rd parties Canada and Australia both worlds
Driver cost/drop Restaurant mix
relative to Skip (example zones)
4.5x
17
3x
2x 129 143
1x 155
London Sydney
UK ANZ Intn’l Can
Marketplace Delivered
Scale is driving down delivery …Skip is teaching us how to …Giving our customers
costs… go faster… greater choice.
18 Just Eat Group H1 2018 Results2018 outlook
H2 will see continued investment in delivery and brand
• Current trading
o UK comps enhanced for a further 6 months by:
• Hungryhouse integration
• 50p service charge
o ANZ deeper roll out of delivery
• Growth investment to step up in H2
o Accelerate UK delivery
o Build brand awareness
o Expand engineering/delivery capability
• Outlook for FY2018
o Board is confident for the year ahead
o Increased growth investment from £50m to £55 - £60m
o Revenue guidance increased to a range between £740 - £770m, despite a
slow start to Q3
o EBITDA guidance maintained at £165 – £185m reflecting increased investment
19 Just Eat Group H1 2018 Results03 Q&A 20 Just Eat Group 2018 Capital Markets Day
07 Appendix 21 Just Eat Group H1 2018 Results
Disclaimer This presentation, which has been prepared by Just Forward-looking statements contained in this Eat plc (the "Company"), includes statements that are, presentation regarding past trends or activities should or may be deemed to be, “forward-looking not be taken as a representation that such trends or statements”. These forward-looking statements can activities will continue in the future. You should not be identified by the use of forward-looking place undue reliance on forward-looking statements, terminology, including the terms “believes”, which speak only as of the date of this presentation. “estimates”, “plans”, “projects”, “anticipates”, No representations or warranties are made as to the “expects”, “intends”, “may”, “will”, or "should" or, in accuracy of such statements, estimates or each case, their negative or other variations or projections. comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company's Other than in accordance with its legal or regulatory intentions, beliefs or current expectations. Any obligations, the Company does not undertake any forward-looking statements in this presentation reflect obligation to update or revise publicly any forward- the Company’s current expectations and projections looking statement, whether as a result of new about future events. information, future events or otherwise. By their nature, forward-looking statements involve a In making this presentation, the Company is not number of risks, uncertainties and assumptions that seeking to encourage any investor to either buy or sell could cause actual results or events to differ shares in the Company. Any investor in any doubt materially from those expressed or implied by the about what action to take is recommended to seek forward-looking statements. These risks, uncertainties financial advice from an independent financial advisor and assumptions could adversely affect the outcome authorised by the Financial Services and Markets Act and financial effects of the plans and events 2000. described herein. 22 Just Eat Group H1 2018 Results
Roadmap: Just Eat Group’s strategic growth drivers
Serving every customer’s takeaway moment
Leading a world-class digital
1 Building out our marketplace
to world-class
2 Engineering delivery to
complement marketplace
3 organisation supporting local
teams of customer experts
£3bn GMV £0.3bn GMV
3,300 employees
£16bn Addressable market £41bn Addressable market
• Customers love ‘takeaway’ and • Delivery opens a wider choice for • Our brands attract high quality,
reward choice with frequency customers, particularly of famous ambitious talent
• Tier 2/3/4 cities will fuel continued brands and high value restaurants • Our data and digital teams will
growth across our markets • Tier 1/2 cities suited to viable delivery differentiate our hybrid service
• Our customer service and user • Our skip model is both scalable and • Developer talent will double to
experience are on track to world-class world-class, rolling out to UK/ES/ANZ engineer better solutions for
• Our data insights will deliver a • Strategic partners are valuable customers
revolutionary personalised service catalysts of growth e.g. Stuart • Our unique Just Eat culture blends
• Feet on street delivering improving economics local and global
• Significant investment required
Hybrid ‘Just Eat’, giving customers even better choice and service
• We expect marketplace to continue healthy growth at current margins
• We will invest in a complementary delivery capacity that could become up to one-third of our business long-term
• Our organisation will grow considerably both with developers and the skills/teams to coordinate delivery partners around the world
• We will invest for growth and be led by our customers
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