ALWAYS DELIVERING AN AMAZING EXPERIENCE ANNUAL REPORT 2020 ALWAYS DELIVERING CONTENT AN AMAZING COMPANY 3 CONSOLIDATED FINANCIAL STATEMENT 85 At a Glance 3 Consolidated Statement of Financial Position 86 EXPERIENCE Our Values 5 Consolidated Statement of Profit or Loss and Letter from the CEO 6 Other Comprehensive Income 87 Management and Team 8 Consolidated Statement of Changes in Equity 88 Report of the Supervisory Board 9 Consolidated Statement of Cash Flows 90 Corporate Governance 14 Notes to the Consolidated Financial Statements 91 Non-financial Report for the Group 35 Responsibility Statement 153 Investor Relations 49 Independent Auditorʼs Report 154 Limited Assurance Report of the Independent Auditor 161 COMBINED MANAGEMENT REPORT 52 FURTHER INFORMATION 163 Group Profile 53 Economic Report 56 GRI Content Index 164 Risk and Opportunity Report 67 Financial Calendar 2021 169 Outlook 79 Imprint 169 Supplementary Management Report to the Disclaimer and further Notices 170 Separate Financial Statements 81 Other Disclosures 84 Use our interactive table of contents. You will be taken directly to the relevant page. DELIVERY HERO AT A GLANCE ORDERS 2020: GMV 1,304.1 2020: MILLION EUR MILLION 12,360.9 BACK 2019: 2019: +96 % 666.0 +66 % 7,435.4 FORWARD PREVIOUS PAGE SEARCH TOTAL SEGMENT ADJ. EBITDA/GMV HOME REVENUE IN % 2020: EUR MILLION 2,836.2 −8 −6 −4 −2 0 2020: 2019: −4.6 +95 % 2019: −5.8 1,455.7 +1.2 PP EUROPE Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Finland, Greece, Hungary, Montenegro, +51 % Norway, Romania, Serbia, ASIA ORDERS Sweden Bangladesh, Cambodia, Hong Kong, Laos, Malaysia, Myanmar, Pakistan, Philippines, South Korea, Singapore, Taiwan, Thailand, Japan ORDERS 2020: 128.7 million 2019: 85.0 million AMERICAS GMV Argentina, Bolivia, Chile, Peru, 2020: € 1,737.5 million Ecuador, Venezuela, Panama, 2019: € 1,047.5 million Paraguay, Uruguay, Dominican Republic, Costa Rica, SEGMENT REVENUE 1 MENA Honduras, Guatemala, Canada , 2020: € 323.1 million Columbia Bahrain, Jordan, Egypt, 2019: € 173.2 million Kuwait, Oman, Qatar, Saudi Arabia, UAE, Turkey, Lebanon ADJ. EBITDA 2020: € –2.2 million 2019: € –19.0 million +194 % +119 % +29 % ORDERS ORDERS ORDERS ORDERS GMV ORDERS GMV 2020: 386.3 million 2020: € 4,335.6 million 2020: 667.7 million 2020: € 5,211.3 million 2019: 298.6 million 2019: € 3,476.8 million 2019: 227.0 million 2019: € 2,357.5 million ORDERS GMV SEGMENT REVENUE ADJ. EBITDA SEGMENT REVENUE ADJ. EBITDA 2020: 121.3 million 2020: € 1,076.6 million 2020: € 894.3 million 2020: € 98.6 million 2020: € 1,196.0 million 2020: € –456.1 million 2019: 55.4 million 2019: € 553.6 million 2019: € 716.6 million 2019: € 43.3 million 2019: € 455.5 million 2019: € –312.2 million SEGMENT REVENUE ADJ. EBITDA 2020: € 257.4 million 2020: € –143.1 million 2019: € 110.4 million 2019: € –143.0 million 1 Operations in Canada were ceased in May 2020. 2 2 Starting in 2020, the new segment Integrated Verticals has been established. INTEGRATED VERTICALS There are no comparative figures for the previous year. Orders and GMV are accounted for in the respective platform segments and shown in the ORDERS GMV SEGMENT REVENUE ADJ. EBITDA Integrated Verticals segment for illustrative purposes only. 2020: 24.3 million 2020: € 196.8 million 2020: € 183.6 million 2020: € –64.9 million Note Due to intersegment consolidation adjustments, revenues of the segments do not sum up to total segment revenues (cf. page 61). OUR VALUES We deliver solutions. We always aim higher. We are Heroes because we care. At Delivery Hero, we are working each day on deliver- ing an amazing experience to our customers. And at the same time, we do our very best in being true to the values that we have set for ourselves. Because we believe that it is not about building any company. It is about building a company that pursues a sustainable path in every aspect. While the customer is at the core of our product offering, it is also about the partners we work together with – the riders, the restaurants, but also many other vendors. And it is about all the Heroes that work for Delivery Hero, be it in the offices or outside. And last but not least, it is also about the environment of which we are a part of and that we need to take care of. If you are interested in learning more about our values and how we live them at Delivery Hero, please visit our website: www.deliveryhero.com/about Delivery Hero | Annual Report 2020 Company | Combined Management Report | Consolidated Financial Statements | Further Information Dear Shareholders, dear Heroes, Looking back on 2020 makes me proud in many respects. As a company that will only celebrate its 10th anniversary in 2021, we truly lived up to our values in a year that was impacted by one of the biggest challenges in decades. We responded by delivering solutions to deal with the sudden and drastic changes in the conditions we had to operate in, and by aiming higher. We also showed that we are Heroes because we care. We provided hundreds of thou- sands of delivery jobs to our rider partners, we supported Niklas Östberg, Co-Founder and our employees to work from home as much as possible Chief Executive Officer and we helped our restaurant partners and vendors by securing a revenue stream, when in-dining and shopping were heavily restricted or even impossible. And we also continued to care about the impact we have on our envi- ronment by expanding the scope of our carbon-neutral operations to our European and Latin American activities. LETTER FROM By the end of 2021, we even want to reach carbon-neutral- ity globally. We do all this while pursuing our vision: to always deliver THE CEO an amazing experience – fast and easy to your door. 6 Delivery Hero | Annual Report 2020 Company | Combined Management Report | Consolidated Financial Statements | Further Information The tremendous growth we achieved in 2020 underlines And while many of the COVID-19-related consequences Brothers in South Korea after a lengthy closing period that that our customers appreciate our offering: we almost were indeed challenging for our business – in the import- spanned the whole of 2020. Woowa is a leading player in doubled our orders from 666 million in 2019 to 1,304 mil- ant MENA segment we saw a 6% decline in orders in the one of the largest food delivery markets in the world. To- lion in the last financial year. Our GMV reached € 12.4 bil- second quarter of 2020 due to curfews and lockdowns – we gether, we see further substantial growth in this market, lion in 2020, corresponding to an increase of 66%. While reached and even partly exceeded our original guidance but also in all of our Asian operations. the majority of this was still generated in our traditional for the year. Total segment revenue of € 2.8 billion was core business of food delivery, our new offering in the field above the guidance range of € 2.4 billion to € 2.6 billion, In this sense, I am proud and thankful for what we have of quick commerce is also growing rapidly. One part of while the underlying EBITDA margin stood at −16%, thus achieved so far, and at the same time, I am eager to move q-commerce is where we deliver groceries and other items exactly in the middle of the guidance range of −14% to forward to seize more of the opportunities that lie ahead. on behalf of third-party vendors and usually below one −18%. And furthermore, our additional investments of hour. The important other part of this business is our € 115 million fell short of the up to € 200 million we had We could not have got to where we are today without your Dmarts, which we operate ourselves and from where we forecast when entering the 2020 financial year. Delivery support. You, our heroes, who work tirelessly to drive often deliver in as fast as 15 minutes. At the end of last Hero’s strong growth and positioning was also recognized Delivery Hero forward. But also you, our shareholders and year, we were operating 491 of these Dmarts, and we see by the capital market and reflected in a significantly in- bondholders, who have supported us throughout the significant potential for expansion in 2021. creased share price. Over the course of 2020, our share years. Thank you all for being part of this amazing journey. price increased by 80% – and in August, it was included in The increasingly important foundation for our entire busi- the DAX, Germany’s most prestigious index comprising Yours, ness is our best-in-class capability to cover the last mile the 30 largest and most liquid German companies. with our delivery infrastructure. We have come a long way from being a pure marketplace business to also operating Looking ahead, there are many structural trends that pro- the logistical aspects. In 2020, more than six out of ten vide ample additional growth opportunities for our busi- orders in the food business were delivered by us, and in ness. In addition to that, I am especially excited about the many countries, we are close to 100%. strategic partnership we finally entered into in March this Niklas Östberg year when we closed the planned transaction with Woowa 7 Delivery Hero | Annual Report 2020 Company | Combined Management Report | Consolidated Financial Statements | Further Information ONE TEAM ONE MISSION MANAGEMENT BOARD Niklas Östberg Emmanuel Thomassin Pieter-Jan Vandepitte Christian v. Hardenberg Jeri Doris Johannes Bruder Co-Founder and Chief Financial Officer Chief Operating Officer Chief Technology Officer Chief People Officer Chief Product Officer Chief Executive Officer – co-founded Delivery Hero – joined Delivery Hero – joined Delivery Hero – joined Delivery Hero – joined Delivery Hero – joined Delivery Hero in 2011 in January 2014 in August 2015 in June 2016 in January 2018 in October 2018 – responsible for strategic – responsible for all financial – International markets, – Technology and software – Employee Experience – Product Management development of the Group activities of the Group Sales & Revenue, development and Marketing and M&A Quick Commerce 8 Delivery Hero | Annual Report 2020 Company | Combined Management Report | Consolidated Financial Statements | Further Information REPORT OF THE SUPERVISORY BOARD DEAR SHAREHOLDERS, COOPERATION BETWEEN THE MANAGEMENT conference call.