Online is the future? – Online is now! Brussels, June 2016 How HelloFresh built up a unique grocery retail consumer brand
Creating a Brand Global Lifestyle Brand Consumers Trust and Love
Delivering a Technology Hyper-Personalized Fresh Food-At-Home Experience
Disrupting Traditional Supply Chain and Redefining Supply Chain End-to-End Control of Fresh Food
1 Asking for preferences - Everybody loves eating fresh food
Consumers love fresh food
2 However, people eat less and less fresh food today
UK Example: Food consumption, grams per week 400 Fresh green vegetables 300
200
Ready meals 100 Pizza
Crisps 0 1974 2011 http://www.economist.com/news/britain/21582259-it-has-become-nation-microwavers-and-takeaway-munchersbut-surprisingly-sociable-one
3 Thus, we are bringing innovation to an underserved industry
The average household eats 62% of their meals at home
While innovation for out of home dining has exploded, the at home market has gone 50 Years without true innovation
Our Goal is to deliver personalised fresh food at home
4 Hence, consumers love HelloFresh because of…
No No No Planning Shopping Waste
1 Box Delivered Perfectly Portioned Personalised Easily Managed Weekly To The Ingredients For 3-5 Fresh Food, Via Subscription Door Meals Per Week Locally Sourced Platform
5 HelloFresh is disrupting the traditional food supply chain
Typical Food Supply Chain HelloFresh Supply Chain Revolution 10 Days & 5 Parties 3 Days & 3 Parties
Producer Wholesaler Producer Day 2 Faster & Fresher Day 1
Warehouse Day 4 2% Waste
5% Waste No Food Waste Day 2 Supermarket Day 6
Home Day 10 5% Waste Home More Margin Day 3 3% Waste
Source: Management estimates.
6 HelloFresh has realized tremendous growth since 2012
Net Revenues (mio. €)2 >7,500 787k of Active Recipes CAGR 408% Customers1 305
7.5m €305m Y-o-Y 272% Meals Delivered Net Revenue in Mar-2016 for 2015
+338%
106.9
69.6
28.7 14.2 2.3
2012 2013 2014 2015 Q4 2014 Q4 2015
Source: Management data, audited and reviewed financials. 1. Active customers refers to the number of uniquely identified customers who received at least one box within the 13 weeks, as of Mar-2016 2. Audited IFRS financials for FY2012, FY2013, FY2014 and FY 2015.
7 HelloFresh growth is currently outpacing key disruptive consumer brands …
Growth Above Key Disruptive Consumer Brands Revenue (€m) 300 Proof of Growth Concept Kicks In
200
100
0 Year 1 Year 2 Year 3 Year 4 Source: Management data, company public filings, Capital IQ Note: Individual companies’ revenue converted to EUR at historical fx-rates (source: Capital IQ); Year 2 indicates the second reported fiscal year revenues (Amazon: 1995, grubhub: 2011, eBay: 1996, Just Eat: 2009, LinkedIn: 2007, Netflix: 1998; Year 1 based to zero for all companies for illustrative purposes).
8 … serving costumers across Europe, North America and Australia
HelloFresh Global Footprint
Current HelloFresh markets 205m Households in Current HelloFresh Markets
Source: Technomic
9 Why it takes a tech company to crack the challenges of groceries online
Creating a Brand Global Lifestyle Brand Consumers Trust and Love
Delivering a Technology Hyper-Personalized Fresh Food-At-Home Experience
Disrupting Traditional Supply Chain and Redefining Supply Chain End-to-End Control of Fresh Food
10 Our technology platform consists of five seamlessly integrated engines HelloFresh Technology Platform
LUCY 1 2 PAUL Personalization Procurement Engine Engine Offering the right Sourcing high quality recipe for our ingredients at subscribers 5 attractive prices
FRESH Unified Application & JULIA 3 4 JESSICA Logistics Engine Data Layer Subscriber Acquisition & Just-in-time Our proprietary layer Retention Engine manufacturing & for application services Finding and last mile delivery and big data retaining high-CLV subscribers 11 We are uniquely positioned for personalization
Food Design Shopping Cooking Taste Data Data Data Data
HelloFresh collects data across the whole home cooking process, which provides us with superior customer insights ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗ ✗
12 HelloFresh is continuously improving it’s understanding of costumer preferences
START FUTURE Curation Taste Clustering Hyper-Personalization
My friends call me their chef
Jill My kids should eat healthy
Jennifer I love sports, I live my job
Jeff Degree of Personalization of Degree
13 The advantages of disintermediation and a just-in-time supply chain
Creating a Brand Global Lifestyle Brand Consumers Trust and Love
Delivering a Technology Hyper-Personalized Fresh Food-At-Home Experience
Disrupting Traditional Supply Chain and Redefining Supply Chain End-to-End Control of Fresh Food
14 HelloFresh owns the subscriber experience End-to-End
15 We carefully select & on-board suppliers to the HelloFresh process
Agree to standard HelloFresh process Supplier Supplier Supplier Ensure they can supply the appropriate quality Supplier Supplier Supplier
Ensure they can supply the required quantity Reject
Identification Supplier Supplier Supplier Proceed if Supplier Attractive payment terms and pricing satisfactory Supplier Supplier Audit Supplier
Supplier Conduct site visit Supplier Reject Due Diligence Due Proceed if Check food safety certificates satisfactory Supplier
Consistent quality Reliability in terms of delivery and quantity Supplier Reject Test Orders Test Supplier Supplier Business hygiene factors (invoicing etc.)
16 Every month we send out food for….
> 7.500.000 meals…
17 …with further potential for penetration and expansion
Short-term Mid-term Long-term
Expand into new Create hyper-personalized Build the category products and regions food platform
1 Product Enhance Flexibility & Increase Product Hyper-Personalization Service Scope
2 Supply Chain Own Last Mile Automation Reverse Auction Platform 3 Brand Increase Awareness Increase Loyalty Global Lifestyle Brand
4 Market Drive Penetration New Geographies Open API
18 Our Mission: Build the leading, global online consumer food brand
19 Thank you for your attention
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