Q2 2021 Just Eat Takeaway.com NV Earnings Call

And following our investments into these markets, which started in the second half of last year, UK and Canada have already been turned around.

As a result of our cement with leadership positions, our adjusted EBITDA will increase going forward.

Stated previously we don't consider our partial ownership of <unk> as a market leading position and therefore, we still intent to divest our stake if an appropriate offer is made.

Now please follow me to the next slide.

The combination of just you takeaway that's common grubhub is one of the largest food delivery companies on this planet the map shows our global footprint and the number one positions that we hold in Canada across the major European markets.

Ral and Australia.

Slide six you will see how this translates into our half year results.

We serve nearly 100 million active consumers by the end of June and.

An increase of 21% year on year.

Our percentage of returning active consumers increased further to 67% while the number of orders per active consumers grew significantly to $2 nine times per month, mainly driven by our enhanced restaurant offering and investments in growth.

This resulted in 547 million orders, representing a <unk> of $14.1 billion Euro in the first half of 2021 up 50% on a constant currency basis compared with the same periods of 2012.

We generated revenue of $2.6 billion euro up 52% compared with the first half of 2020.

Adjusted EBITDA on a combined basis with just eat takeaway dot com was -190 million euro in the first six months of 2021, representing an adjusted EBITDA margin of -1% to 3% of TPB, reflecting our significant investment efforts.

Brent will further elaborate on the financials and the financial section of this presentation.

As a reminder, our investments are focused on the acquisition of new consumers and adding new restaurants to our platform to drive powerful network effects to compound the growth of our market leading positions.

Throughout this presentation you can see that we specifically target these drivers with our investments.

Please follow me to slide eight.

Our investment efforts in the historically Underinvested legacy <unk> markets are built on three strategic pillars supply expansion and rollout of delivery.

Brand awareness and share of voice and.

And the customer experience and value proposition, including price leadership.

On slide nine you see that these investments have fueled network effects. We have added a record number of new restaurants active consumers grew 22% to over $65 million.

And their average monthly order frequency has strongly increased from two to five times to 2% to nine times.

This development is also clearly visible and dramatic improvements of all the cohorts.

Both new and existing customers.

The significant growth of call. It speaks for itself I want to focus on a couple of things.

First of all the 2020 cohorts in Blue has already ordered nearly as much in the first half of 2021 as in the full year of 2020.

Also in the second half of 2020 in the first six months of 2021, if added far more new consumers been useful.

Furthermore, the 2020 cohort has proven to be a lot stickier than usual caused by reduced churn and higher order frequency.

And then lastly, the existing consumer behavior.

In 2020, and 2021 has improved dramatically caused by significant.

The higher order frequency driven by enhanced restaurant selection hi.

Higher top of mind brand awareness and higher App usage. It shows that the targeted investments pay off both in the short term and on the longer term.

The investments in the first half targeted sustainable growth.

And focused around our fee strategic pillars on slide 11, you see a bridge showing the key investment areas for the first six months of 2021 versus the first half of last year for our company excluding the U S.

I'd like to call out a few areas, specifically, starting with the $122 million Euro and price leadership investments left.

As we have often said we invested heavily in price leadership, who consistently low delivery fees or in some cases, even no delivery fees at all.

Compared with a normalized <unk> level.

This resulted in an additional investment of 122 million euros for the first half of the year.

Please note that on the right hand side of the chart that we have increased pricing in July and August.

Which if that price level would have been applied to each one would have increased EBITDA by $81 million on a half year basis without materially impacting growth.

Given the gap in delivery fees compared to competition further widens. We believe that there is further flexibility to increase prices, but we will always determine what is best for the growth of our business when looking at our delivery fees.

Further investments have focused predominantly on marketing sales and logistics.

With specific focus on the legacy just eight countries.

Over to first of the 182 million euros in additional spending was targeted at those historically underinvested markets, which allowed us to successfully expand our market share.

Lastly, I would like to highlight the impact of fee caps and voluntary COVID-19 Commission rebates.

In the first half of 2021 this impacted EBITDA by an additional $22 million versus the first six months of 2020 again, excluding the U S.

The total impact of fee caps in voluntary commission rebates on our adjusted EBITDA was $142 million of which 110 million was related to fee cuts in Canada, and the U S and $32 million was related to voluntary Commission rebates.

On the right hand side of the chart, we have shown the elicited EBITDA level for the first half year, assuming no fee caps No commission rebates and current pricing.

Please note that this is not guidance for the second half as we will continue to invest we do believe however that losses have peaked and profitability will improve going forward.

On slide 12.

To spend some time to share why delivery is key to us.

First of all at the expense our restaurant selection, while offering a consistent delivery experience with last mile feasibility through our carrier network wearing a branded clothes and backpacks.

The delivery business represents a less mature market to a platform with greater underlying growth, providing new consumer opportunities.

We do have a significant competitive advantage and delivery with our delivery already being profitable in the U S and Canada.

Why do you disclose the profitability Europe, when excluding the investments in the U K we.

We have high density because of our larger consumer base and we have the ability to offer lower delivery fees, because our consumer lifetime value is superior to others due to our marketplace offering.

Our global scale and brand to help us to secure partnerships with key restaurant chains.

We have a clear path to profitability, where our increased scale will further increase operational efficiency.

Furthermore, product and technology improvements will drive profitability.

Given the widening gap in delivery fees, we have the flexibility to optimize pricing, while we will continue to invest significant amounts in providing the best and most affordable service to our consumers across the world.

On slide 13.

And we believe that convenience will bring new revenue opportunities and additional scale efficiencies it.

It is complementary to our current food offering and it serves as consumer acquisition tools.

Our fleet utilization can improve thanks to increased density and broadening of our peak times.

The unit economics are in line with delivery and as delivery and kind of that's already profitable. We are now testing dark stores or our Skip Express lane next to the convenience offerings that we already have in Canada through 711.

For Europe, we will focus on partnerships with existing and new supermarket partners using our existing delivery network.

Although our brands will share our financial update regarding HIFU.

I just would like to emphasize that our steak and <unk> represent significant value to our company given the fast growth in an exciting market we.

We continue to be open to sell our stake in ICU.

And just to indicate how fast its failure rates increasing to $2.3 billion offer. We received is already almost six times higher than the highest offer we received two yes.

Now I'd like to I'll hand over to Derek who will take you through some of the segments in more detail.

Thanks, and good morning, everyone as yet so just talked about our strategy is to build clear market leadership in every country. So that we can benefit from the positive network effect that characterize the food delivery sector, and which provide a strong tailwind to growth for the number one player in.

In this section I want to give a little more color about our performance in key markets and how our investments are helping to reinforce and extend our market leadership globally.

Please turn to slide 16.

In Europe jet has an unrivaled position, we have roughly a 70% market share of online food delivery and are multiple times larger than the next largest player over 95% of our CTV in Europe is generated from countries, where we have a clear market leadership position, including the UK, Germany, Netherlands and Poland.

That market strength also translates to our brands and jet has.

Our highest top of mind brand awareness across Europe as shown on the chart on the right.

As you can see in many markets. Our awareness is more than double that of the nearest competitor, which makes a real difference when it comes to which brand customers choose to make an order from <unk>.

As we've talked about before ordering food delivery is typically a very spontaneous decision so being our customers' first choice.

Really important to us.

We've continued to invest to improve our top of mind brand awareness, we've increased our market share of marketing share of voice and legacy adjusted markets, which historically under invested and have also agreed major regional partnerships to leverage our brand strength across Europe, including sponsoring the euros and UEFA Champions League.

We've seen very strong results already in our brand metrics and expect these to further improve over the coming months and years.

Please move to slide 17, our.

To focus on the U K, where we have seen very strong growth as a result of our additional investments.

We've invested in a number of areas first we've massively scaled our logistical business, including rolling out of <unk>. Mcdonald's for example, we grew to over 1000 branches across the UK and Ireland and now are fully at scale.

We're convinced about network effect created with these additions of cures ours.

And.

The positive contribution to marketplace that comes with it.

<unk> amongst other things have impacted our gross margin, though and contributed towards a net $55 million euro decline EBITDA and edge one 2021.

Second we have invested significantly in price leadership, including offering free delivery in London, and very low delivery fees for a number of key brands nationwide.

This accounted for 77 million euros of EBITDA investment in H, one 2021.

Given the widening price gap and improve competitiveness versus competition, we have flexibility around pricing and have already reduced investment during the second half.

And finally, we are also on methodologies sales and marketing to step change our restaurant supply and our new customers as well as launching our implied logistics model and number of UK cities, including London, Birmingham and Manchester.

This has driven $43 million of increased cost between <unk> 2020 in <unk> 2021.

In combination these investments have transformed our performances in the UK.

Total orders increased by 76% between etch one 2020 in <unk> 2021, and we also added almost 50 million orders. Additionally.

In terms of delivery during that period, which represents a phenomenal 733% increase year over year.

Now fulfilled more than twice as many orders as in 2019.

Turning to page 18.

We can see that.

This investment in our network effects has made a big difference and all of the underlying drivers of growth.

All of our active restaurant update has grown by almost 40% to 58000.

Which makes us the largest player in the market on a like for like basis.

We also increased our active customer base to $17.5 million at 23% drive and our average monthly order frequency of two to 3.2, which represents a significant step change from <unk> 2020, we.

We've also maintained this increase in frequency despite recent relaxation and COVID-19 restrictions.

Please move to the next slides.

This slide shows our share based on online metrics on.

On the left is Google trends, which we believe is a good proxy for new customers.

And on the right the data from similar web, which is more indicative of others.

Once again see is that in both jobs just it has not only stabilized historic declines in share. But also has started to reverse the trend and gained share during the last few months.

In fact, if we dig deeper into the data from similar web there are a number of positive trends that we're seeing about our customer loyalty.

Jeff It has best in class returning customer behavior in June 2021 at 76% compared to about 70% for the number two and number three player that.

That number has increased by 600 basis points since the start of the investment program.

<unk> has also the highest proportion of customers, who exclusively use that site with 58% versus 45% and 38% for the number two number three player.

And just it is also the lowest bounce rate at around 5% compared to 15% for our competitors, which suggests that we have a better our iron our PPC spend.

On the right hand side. This chart shows our total orders for UK and Ireland combined for comparability purposes.

What this shows is that based on H, one reported results, we fulfilled twice as many orders as the number three player in the market.

We also gained market share in terms of CTV on both a relative and absolute basis with 9% growth quarter over quarter at 8% growth for the number three player. We are really encouraged by this data, which we believe strongly supports our investment case.

That is also further supported by slide 20.

This page shows data from credit card transactions, and clearly demonstrate that on a national level, Jesse just growing faster in absolute terms than competitors and widening the gap in terms of orders on.

On the right hand side, we can also see that Steve.

Significantly close to market share gap in London and have gained around 10 percentage funds to the start of our investment program.

They are still further to go and we know that we need to continue to expand supply improved top of mind brand awareness and enhance customer experience. However that gives us real confidence that our investments are paying off and that we are on the right track to success, both in London and in the U K as a whole.

Turning to the next slide we are now moving on to Germany.

Farmers in Germany continues to be very strong.

Over the last year, we've grown orders by over 60% processing nearly $80 million in the first half.

Our <unk> has also increased by 77% during this period and we've increased our EBITDA from 58 million euros and H, one 2020 to 94 million euros in <unk> 2021.

Delivery has grown at triple digit growth rates and is now at significant scale. Our delivery operations is approximately five times.

And of our total German business, approximately 70 times larger than the delivery hero logistics operation when it was acquired by US in April 2019.

We now have 30000 restaurant partners in Germany, with 20% of these made up by delivery restaurants.

We are also partners with all of the large chain in Germany, and we're continuing to expand our logistics footprint to more cities.

From a consumer perspective, we have an unrivaled brand awareness in Germany with top of mind brand awareness, reaching almost 70% and aided brand awareness at around 90%.

And finally to put our size in perspective, our German business.

As more than 30% larger than the whole European business.

And almost the same size in terms of CTV is the whole European and Americas business is one of our competitors, who now just re entered the German market.

Please move to page 22.

The next two slides in this section so our online share metrics for a few of our key markets.

We have been experiencing competition for many years from various national and international players.

You can see from chop and the dates when they entered the market.

Looking first at our major profit pools in Germany, Canada, and Netherlands, we can see that we continue to defend and reinforced our clear number one position in these markets.

In Germany, we have seen a couple of new entrants into that market over the last 12 months. However, neither of those have made significant inroads and jet continues to attract the majority of new users as indicated by Google trends and to the extend our lead in terms of absolute orders as indicated.

Biosimilar vet visits kind of that continues to be a highly competitive markets, but we've been able to hold our share and market leadership position in.

In absolute terms, we believe we've grown orders faster than competitors over the last 12 months.

We've also expanded our convenient grocery operations with a launch of Skip Express Lane mentioned.

I mentioned, a doctor model that will complement our existing partnerships with convenience retailers, we expect it to be profitable in line with the rest of delivery in Canada.

In the Netherlands. The story is very similar.

Market position is very strong and we continued to outpace our competitors in absolute terms, despite the largest competitors being present in the market since 4031, respectively.

In combination. These three markets, we have continued to support topline growth and generate significant profit. Please.

Please turn to the next slides on this slide we show the same data for Australia, Poland and Italy across all of these markets, we continue to outpace and outperform our competitors.

Australia, particularly we have made significant gains over the last 18 months.

And now the market leader in online food delivery in Poland. We have continued to maintain our number one position.

<unk> remains a very strong market for us and we remain the only player to have successfully transitioned to a fully employed logistics model.

Our continued leadership in these and many other markets a real source of strength and we are confident of reinforcing and extending our position through all through our continued investments.

I will now hand over to Matt to talk about the U S.

Thank you.

And good morning, everyone.

Trevor has nearly doubled since we announced the deal and we are still very excited about our opportunity in the U S. In line with our strategy Grubhub holds strong leadership positions in many key densely populated urban areas and specifically we are the clear number one later in New York City, which is one of the world's largest and most.

Profitable delivery market in the world.

Other business Grubhub is already at significant scale generated $10 billion to TV dollars on an annualized basis in the first half of 2021.

With a year on year order growth rate of almost 30%.

It's also fundamentally profitable from our marketplace business.

Adjusted EBITDA of 63 million euros in the first half of 2021, excluding fee caps.

Before I cover New York City also had a very strong <unk> offering what is barely registering now, but we are starting to rekindle as offices start to reopen and that is obviously pandemic dependent.

Looking forward our strategy in the U S is in line with our global strategy to reinforce and expand our existing strongholds driving network effects and enhanced profitability overall.

We will focus primarily on New York City, expanding and concentrating our platform there.

Great City of New York does not appreciate the billions of dollars in food sales and millions of dollars in tips, we generated for them over the past 20 years, but we will still focus on helping restaurants there.

We believe all fee caps on an advertising model or illegal.

But we avoided during the emergency orders in order to help restaurants, there that we're bearing the brunt of pandemic closures now that restaurants are open in New York City, we will vigorously fight any attempts to curtail a free market there.

Once these fee caps are falling away, we will continue to reinvest that amount back into the business and drive further growth for local restaurants.

As part of our strategy. We also wanted to consolidate our marketing assets and transition seamless Grubhub later in the year.

Seamless is iconic in Manhattan.

But it is less well known in the suburban New York Analyst.

As the market gets more and more crowded it is important to leverage a single brand across the city.

And we will also with a local bump from a much more efficient national Grubhub TV campaigns.

We currently spend over a half of $1 billion in growth in the us and without fee capture would also have an additional $250 million in profits to spend here.

We intend to invest significantly to gain back share and grow in our key leadership markets without tapping into global profits.

We do not want to be a drag on our corporate EBITDA.

We have a lot of plans for how we will win back the U S and how we will share we will share.

Further strategic updates at our capital markets day in October.

Tim I'll hand, it over to Brent who can take you through <unk> results for the group on our segments.

Thank you, Matt and good morning, everyone.

And the first opened 2021, we achieved another step change in our skill both from the combination with Grubhub and from the strong strong organic performance of the markets.

On this slide you see a comparison using IP rich and combined views for orders revenue and adjusted EBITDA.

Ive risk basis shows the adjusted culmination as from the control date of April 15th 2020, and Grubhub is from 15 June 2021.

Please see the notes to the press release for the exact explanation. The combined figures showed you data because if the merger between takeaway dot com and just eat as well as the acquisition of Grubhub took place from the first of January 2020. This makes the bigger fully comparable and easier to assess the performance.

Less explicitly mentioned all the bigger in the financial section our combined figures.

Please move to the next slide where we highlight the development.

The drivers behind the growth of the orders and revenue as indicated before by use in Europe, we achieved significant improvement in our key consumer metrics in particular because of targeted investments to generate that.

And active consumer base.

$98 million in the first half of 2021, we can inc, which is an increase of 17 million active consumers compared to the same period last year.

67.

Of these the percent of these 90.890.

And 98 million active consumers are returning consumers, which means that these consumers are ordering minimally two times.

In 12 months this.

67%, an increase of three percentage points compared to last year.

Our consumer base is very sticky once they are returning consumer. Therefore these improvements is expected to have positive implications for future years' growth.

As a result of the bulk and the improvement in order frequency, we saw a number we saw.

Further exploration of order growth the number of orders processed in the first off for six months in 2021 was $547 million, an increase of 51% compared to two years before due to year before strong order growth is seen in both marketplace and delivery delivery orders grew by.

106%, which was driven by investments in restaurant supply expansion and successful partnership with Big Global Q was art as well as investments and reduced delivery fees. Following the price leadership strategy with growth major markets.

Strong order performance fueled the increases.

In both gross transaction value and revenue revenue growth of 52% at constant currency outperforming growth transaction value, even despite the significant impact of Covid Commission rebate Bates.

In the first six months of 2021, we provided go with the mission support.

142 million euros of which 110 million euros is related to government in both commission gaps in United States and Canada.

32 million euros related to voluntary a rebate programs to our restaurant partners.

On slide 28, we focus on harp Youre adjusted EBITDA broken down by segments. We are pursuing a clear vision on how to win the markets and strengthen our competitive advantage.

In the first half of 2021, we focused our efforts to drive growth in online online share gain market gain.

Through targeted investments. These investments were predominantly made into historically underinvested legacy just feed markets.

As said before we believe that we had to catch up in these markets to maintain and regain market share overall, we estimate that 230 million euros. We're invested in just these legacy markets and price leadership additional marketing.

<unk> growth of delivery business and expansion of the restaurant base of which more than half went to the UK and Australia.

In the first half to 2021, we've invested 122 million euros, and Brian leadership by reducing delivery fees versus competition and most of our markets. We believe that these bright leadership investments contributed significantly to the regain of market share and growth in adjusted legacy markets.

Given the significant gap in delivery fees versus competition in most of our markets who by the way has increased delivery fees further in the meantime, we have the opportunity to reduce the levels of price leadership investments going forward and still provide a competitive value proposition to our customers.

To support our continued growth our brand is to be top of mind for gross oil markets. We are achieving this by increasing investments in brand awareness and performance marketing.

Specifically the Euro 2020 sponsorship was positioned.

As positions are Brent Association.

Tier sports sponsoring brand and has led the foundation.

For our firm to work with UEFA through 2025.

Our operational expenses are growing to reflect the investments we made in the expansion of the sales teams to drive higher restaurant acquisition growth in logistics and consumer services teams to support our topline growth and an increase in tech and support functions to drive all the improvements to our platform.

And business efficiencies.

We're continuing to generate strong adjusted EBITDA and healthy adjusted EBITDA margin as a percentage of CTV, and Germany, Netherlands, and Canada. Despite the rapid expansion of delivery and the impact of Covid.

Commission rebates, the significant investments together with the fee caps and the bullet Dairy Commission.

Commission rebates led to the total group adjusted EBITDA of minus $90 million.

The first half of 2021.

Please follow me to slide 29, where you notice that we ended the first half of 2021 with a strong cash position of $1.5 billion euros, which includes the $1.1 billion Euro we raised in February of this year through a convertible bond issue.

And some firms we acquired in the acquisition of Grubhub.

With these funds, we are well capitalized to pursue our strategic investments.

Now we will move on to focus on our segments in.

In the UK you additional investment have successfully contribute to the strong order growth of 67% with delivery orders growing by over 700% on a year over year basis.

Revenue growth sure bus order and <unk> growth, despite significant investments, we made and reduced pricing, which helped us to regain market share, including the triple digit order growth enrollment.

We have seen new consumers increased 28% year over year, despite lapping exceptional exceptional new consumer acquisition from the first UK locked down in 2020.

In addition to the aggressive price leadership, we stepped up our investments in marketing and restaurant supply to catch up for previous years of Underinvestment.

We invested significantly in Brent average both nationally a loan.

And the Logan.

With our global advertising campaign, local activations of new restaurants, and successful sponsorship of Euro 2020.

Our expanded sales teams signed over signed up over 60000, new restaurants as compared to June 2020, and we now have over thousands of Mcdonald's restaurants on the platform.

Altogether. These targeted measures led to a reduction of adjusted EBITDA with a strong base for sustainable growth for the future.

Let's have also.

Being shown by Europe, when discussing the developments in the UK.

Moving on to Germany, where orders grew strongly at 62% to $80 million in the first half of 2021.

<unk> surpassed order growth by 50% percentage points supported by harder higher order basket.

And growth of delivery revenue growth was slightly below GTP at 76% impacted by 11 million Euro of temporary commission relief measures to support our restaurant partners.

Adjusted EBITDA increased by 63% demonstrating the strength of this business.

In addition, we continued investing in Germany, as we've always done to shoot to further secure our leadership position.

Next slide please.

In Canada, we continued our significant growth with both orders and <unk> growing 54% year over year.

<unk> revenue grew by 38% on a constant currency basis.

Revenue, though has been impacted by 32 million euros due to temporary voluntary and involuntary commission relief measures to support the Richmond partners, and which doubled compared to last year.

At the end of two doses in 'twenty.

'twenty the loyalty and rewards program was launched driving higher retention increased increased frequency of our consumer base.

Canada currently has the highest order frequency within our reportable segments.

Despite the fact that these initiatives impacted our margin we remained profitable in Canada, which has certainly caused by the quality of our logistical operations and the strength of the skip the dishes brands.

Moving to the Netherlands, where we have Keith a year on year growth of 37% with.

With delivery share increasing by three percentage points to 10.

10% <unk>.

<unk> grow well.

A bulk order growth driven by a larger basket values revenue growth serve both GTP benefiting from a greater mix of delivery orders and promoted placements revenue growth.

The growth of our delivery orders as well as an increase of investments in marketing and customer services and.

And the negative impact on our adjusted EBITDA margin Nonetheless.

We are pleased to announce a $40 million euro profit in the first half of 2021, which is just a slight increase compared to the year before.

Yes.

Next slide please.

<unk> received the rest of the World segment, which comprises of our 14 other European markets as well as Israel, Australia, and New Zealand.

We had 54 order growth year on year.

<unk> growth.

In all countries delivery orders grew 190.99.

<unk> percent, which is mainly driven by our success in Australia.

This growth in delivery orders meant revenue growth exceeded.

Instead of both growth in orders and GTP at 62% on a constant currency basis.

This growth came despite being adversely impacted by over 30 million euros of price leadership strategy, particularly in Australia as well as the impact of temporary Commission relief.

To support the Richmond burdens across Europe and Israel.

The rest of the growth produced an adjusted EBITDA of minus $136 million in 2021 compared to $7 million.

<unk> profit in the same period.

Of last year.

This investment mainly focused on the previously under investments legacy just fee businesses.

The investment and the rest of the world.

Key areas. Firstly these temporary temporary period of price leadership, particularly in Australia, secondly, expanding delivery coverage, including the rollout of the employment model in France and Italy.

Finally significant investments in marketing particular, our sponsorship of Euro 2020, leveraging our consistent branding across all of Europe all over Europe.

We will continue this investment strategy in the rest of the world across the remainder of the year to further.

To further fuel the growth.

Going forward.

Moving to the U S.

In the United States Grubhub processed 134 million orders in the first half of 2021, representing a growth rate of 27%.

Orders grew a growth steered.

And throughout the country and.

During the first half 2021, grubhub begin to see post COVID-19 recovery and large city downtown areas, including markets like Manhattan, as well as the corporate businesses GTP.

<unk> increased 31% on a constant currency basis outperforming order growth. This was primarily driven by our average transaction value during COVID-19 Lockdowns.

Revenue grew 33% on a constant currency basis to over $900 million in the first.

Six months of 2021 revenue growth reflected the mix shift to delivery orders offset by an approximately $70 million year on year headwind from pre caps and voluntary Barton support initiatives.

The lower adjusted EBITDA and a year on year comparison is predominantly driven by the impact of these temporarily.

Commission fees fee caps removal of FICO will positively impact future profitability and.

Provides room for additional investments to strengthen our market positions.

<unk> know some big city has announced the extent the relief measures.

We're planning to Bose is as we believe that these measures are local.

Next slide please.

Finally, we provided some insights in iPhone performance, our Latin American joint venture in which we hold 33% stake.

The results presented here are on a 100% ownership and constant currency basis.

Those yet to discuss before I foods is a strong business.

We can see.

Debt and other impressive set of Kpis and financials.

<unk> increased by just under 70% with DMV in revenue increasing ahead of the order growth driven by the impact of increased delivery and grocery share.

At the same time.

EBITDA losses decreased in absolute terms and EBITDA losses, as a percentage of <unk> decreased by over half to approximately one 5%.

Given the strong performance of iPhone and the high potential we expect to continue.

Taking up our rights to participate in future capital raises.

They've been there.

There are ongoing investments delays as being approximately 50 million euros in July to fund <unk> current financial year.

With this.

Conclude my part and hand over to Youtube.

Thank you Brent.

On slide 39, we would like to reiterate our guidance in terms of order growth GTA V and adjusted EBITDA as a percentage of GDP for 2021.

We guide for an order growth for the full year of 2021 of at least 45% excluding grubhub.

For the full year of 2021 GTT for the combination is expected to be in the range of 28% to 30 billion euros, which clearly establishes us as one of the largest online food delivery companies in the world.

2021 is an investment year to expand our market leadership in particular in the legacy <unk> markets.

However, we believe that adjusted EBITDA losses peaked in the first half of 2021, and we expect our adjusted EBITDA to improve going forward driven by a few factors.

Firstly, the removal of significant fee caps and voluntary partner support in the U S and Canada circa.

Lee improved unit economics on delivery network, and thirdly, increasing benefits from the investment program and the legacy <unk> markets.

As a result for the full year 2021, we expect to see takeaway com, including Grubhub to generate an adjusted EBITDA margin in a range of -1% to minus one 5% of CTV.

We continue with the conclusion of this presentation on slide 40.

Our investment efforts in the historically Underinvested legacy just he'd markets are built on three strategic pillars supply expansion and rollout of delivery rent awareness and share of voice and customer experience and value proposition, including price leadership.

Delivery will become profitable in the medium term through an keast scale, providing further efficiencies product and tech improvements and pricing optimizations.

In the U K, we continue to show online share gains on the back of our investments.

And we have delivered continued profitable growth in both Germany and the Netherlands.

We reached the peak of our absolute losses in the first half of 2021 and.

Improved profitability will be driven by the growth and increased scale of the business flexibility from the widening price gap with our competitors product and technology improvements operational efficiencies as well as fee caps, which are partly expected to fall away going forward.

We reiterate our guidance in terms of order growth <unk> and adjusted EBITDA as a percentage of GDP for the full year of 2021.

We continue to be open to sell our stake in Iceland.

And last but not least we will be holding a capital markets day on the 21st of October to provide the market with further details on our strategy and increased visibility on how we will capitalize on the exciting long term growth and profit opportunities across our business.

And with that operator, I would like to open the call for questions.

Thank you Sir ladies.

Ladies and gentlemen, we will start the question and answer session now.

I'll ask a question I'll remark. Please press star one on your telephone go ahead. Please.

And our first question is coming from Nick SDR.

SDI Ryan Barclays. Please go ahead. Your line is open now.

Okay.

MS. Ryan. Please go ahead.

And <unk> can you hear me okay.

Yes.

Sorry about that.

Good morning, everyone I'm not fluctuate.

I've got two kind of guy.

First one is on the fee caps on what you're including in your guidance for the second half clearly since you provided the 'twenty one guidance in the middle of July but continues in New York. So could you just clarify what is in the guidance regarding seeing comps in the second half and kind of an overview of key cities would be great.

And then the second question is on grocery anabolic docs only like me in Canada can you just.

Can this a bit more color as to why the plans regarding regarding thoughts towards and kind of like you said.

We think we should get to a similar underlying profitability of your core businesses. So should we interpret that is going to be a big rollout will not buy <unk> or any color around that would be very helpful. Thank you.

Thank you.

Regarding the question about fee caps there was of course, the announcements by New York.

<unk> are going to be extended.

We decided to be rational about this and swallow those fee caps in the in.

The guidance and Thats effectively that means that we will move certain resources from other parts of the U S to the cities in which Grubhub is strong and therefore not to use the additional investments that we were expecting to get from the.

Roll off of dose of those fee caps now windows Jacobs argon two rollout we will use the additional investments from from the fee caps going away to invest in the major cities of Av.

Of Grubhub.

And again these investments will be very much like the investment that we've made across our European businesses. It will be in sales they will be in marketing there will be.

Delivery will be in.

And the quality of our business essentially and it's easier for US just like it is in Europe too.

To increase the efficiency of our business in place in which we are already launched and you can see that example in the UK.

I think the UK grew from $11 million orders to 25 million orders a month and of course of the year, which is of course very significant but it's a lot easier to grow a very big business into a much bigger basis than what it will be to grow the tiny businesses into a launch business. So we are always very much concentrated about these investments, but again, we are we are.

Rational player, we're not going to spend money that test.

We do not have since fairly simple.

In terms of the question around grocery.

We have now opened two.

Test stores in Canada.

Those tests are going actually quite well, we're quite excited about about it.

Should we be happy about the unit economics and also about the <unk>.

Stability of that business, we are going to rollout that model Froth, Canada.

But of course these are tests and we have to await the test results for it but at this point in time, we're quite enthusiastic about.

About how how these hubs function and again, we already have a profitable underlying delivery network. So this phosphide easy to add something on top of that.

And in Europe, that's much harder of course, because the unit economics are more challenging and therefore.

The investments that you would have to put into the rollout of dark stores in Europe is going to be significantly greater than what you would see in Canada on digital so why we have chosen to partner with supermarkets in Europe to achieve the same the same outcome.

Helpful.

Sure.

And the next question is coming from Joe Barnet Lamb Credit Suisse. Please go ahead.

Excellent.

Gentlemen, thank you for taking my questions three for me. The first couple on the profit bridge just to better understand that you mentioned 81 million impact from the August price increases than in the U K.

$1 million can you confirm is that the impact solely of the admin fee change or does it include a rise in delivery fee to <unk>.

There seem to be starting to take place. According to third party data providers any color you can give on that would be great secondarily I'm building on Andrew's question relating to fee cap can you break the 110 million euro fee cap.

Involuntary Commission cap impact down between New York and the rest of North America and then finally, just on the step up in rest of World Brent spoke a bit about this but can you talk more about what youre doing in that segment, Brent said that that investment will continue through the balance of the year and as such can we assume that rest of world adjusted.

<unk> Lafayette will also peak at some stage in this year or could it step up further in 2000. Thank you.

Okay. Thanks, I will take the last two questions I'll refer to first question to Europe.

Regarding the rest of World you can assume that that has also peaked in the first half because a lot of the things that we're doing in rest of world are the same as what we're doing in for instance, the U K now.

In other rest of world is a little bit of a mixed bag, we have profitable countries in there.

Large countries that are growing pretty nicely.

Think of Poland, but we also have a very significant investment program for instance, in Australia and that program actually re established us as the market leader in Australia. So its very successful fastest growing country as well, but yet those investments cost money, but we also Dan to peak of dose dosing investments and <unk>.

You'll see us.

Yes.

Improve the.

Improve the unit economics in Australia. So.

This is very much in line with the rest of the legacy <unk> businesses.

Then regarding the fee caps cant give you an exact split but obviously a lot of the business off Grubhub is in New York. So you can also assume that thats quite a significant part of the of the fee caps and it's unfortunate that these pickups have been extended pitching it is what it is and we're going to we're going to have to have to swallow.

The difference.

Regarding <unk> regarding the price increases as the mix of what you said I admin fee change and.

Price increases on delivery fees. So for example, you have seen.

Blade that in.

In London delivery fee went to 99 P which was previously.

Zero four.

Most of the <unk>.

So it's a mix of both.

Excellent. Thank you very much thank you.

And the next question is coming from <unk> Choi Goldman Sachs. Please go ahead.

Hi, Thanks for taking my questions. So, yes, sorry to build on a familiar theme, but it does seem most investors most concerned.

You can maintain current momentum and and also see those EBITDA loss has improved so I guess just in that vein and the U S. Just firstly should we on the second half should we be expecting losses to broadly stay at the same rate.

First off in the second half and just building on Mike's comment about EBIT down negatively impacting the group level.

Grubhub book broadly EBITDA breakeven.

Second one just on that in terms of peak investments can you just give us a bit of an idea how we should get.

It sounds like the U S is that mainly through <unk>.

Delivery fee increases.

Underlying improvement economics, and then a final one just in terms of.

The portfolio you mentioned you talk more about this.

The Investor day in October, but I mean would you consider monetizing assets outside of <unk> not just the high food stake on its $2.3 billion isn't the right number for our food can you give us some idea of how you think about what is the right number. Thank you.

Thanks Sara.

So let's first address the question around around.

Comcast.

Can't give you an exact amounts.

Because also.

<unk> seen a growth in that business actually the longer this takes the more value that business has so you would have to ask me at the moment that we can actually announce a sale of that of that stake and.

And while we then did it I think that's very dependent on the moment in which we actually sell that asset and as we said the.

The value is very significant and we believe that we're going to get a very good price for them.

We are always looking at our portfolio Op, Inc.

That has always been the case as you will remember we divested Mexico last year, we have divested our Vietnamese business, we even divested the UK and France when the.

We have always talked about network effects and how difficult it is to beat as successful.

Incumbents.

We've left the U K, because we could not compete with we've just feed back in the day.

Similarly in France, we have a challenge for us because we were just too small.

So we have done this in the past.

We are very much.

About owning very profitable market, leading positions, we know thats, sometimes a competitor say oh it doesn't matter when we are a distant number two or three it doesn't matter, we don't know any.

Number two a free that is even remotely close to profitability.

Does matter and we don't think that the only way to be profitable as the number two and three is to decrease your marketing efforts and therefore the number one is just going to increase its gap with <unk>.

U S number two or three player. So we don't we don't like those positions and we are very much.

Very much after this very strong positions these profitable businesses and they are not that many of those businesses, but we happen to own a lot of them.

So if it fits that profile will not likely to be a seller.

We can see that to get to profitability is going to take ages, we will divest that.

That asset.

In the case of Ironwood, very specifically, if you would own the whole business, we would certainly not divest the business, but we own a stake and therefore, we can't control it.

To sell it because we don't see why we should own stakes in competitors. It doesn't make any sense because everybody can own stakes, but we're not a financial investor. So it doesn't it doesn't make sense to us.

Then regarding the momentum a lot of what we have done and you can see that on the cohorts slides has.

Significantly increased order frequencies in our customer base.

The restaurant counts.

Those things are there to stay if that's normal pandemic.

That is a meta we essentially added.

At it a lot more customers than we would have been able to do outside of the pandemic and we made use of that.

Pandemic to actually to actually mostly on the adjusted side to improve that business significantly. So I just mentioned it is a big difference. If you have 11 million orders in the U K or 25 <unk>.

The network effects are much greater youre able to attract all the older <unk>, we've become the largest mcdonalds partner in the U K for instance, that's fairly significantly as well.

So there's all these benefits that you have when you are bigger.

And these benefits materialize, because it's a cohorts we can predict cohort behavior, it's not that difficult.

So we are quite confidence about the momentum.

If you look at our pricing even with the July August increases for much cheaper than everybody else right. So we have a lot of upsides Davis well.

But we're going to be very very Ah patients with the increases because we see that our strategy is working we plan to overtake the number one in London, we have February.

Barry.

Very good momentum in the London market. So that's the next aimed for us in the U K and we plan to to put quite a big gap between us and the number that number two in the into British capital. So that's the current plan were off to debt you should not expect this to all of our sovereign rates to.

Delivery fees to to not be competitive anymore in the market. So that's the tradeoff that we make.

Regarding the EBITDA loss in the U S. I think it's safe for you to assume same rate in the second half that having said a lot of that is dependent on the fee caps falling away or not and in which area.

I will have to monitor that as we said.

And I would also as Matt said, we plan to run at roughly at breakeven.

The fee caps are question marks for us So we have to look at what's.

What will happen and when it will happen in some cases fee caps have fallen away in other cases, we are expecting them to fall away within a month or so so we have to we have to look at it.

And I think those questions if I'm correct.

Just sorry, yes it helps.

The EBITDA beyond that I think you mentioned has not been a negative drag on the group level is that a is that a comment that you might run at breakeven for the longer term. It is.

Thank you.

I think it's very I think it's important it's actually around around around the Grubhub dropout has a very profitable for it owns a large marketplace segment that owns a large <unk> segment and of course, a lot of a lot.

The <unk> has been impacted because of COVID-19.

But yeah when people return to the office, that's going to come back because there's all these all these corporate contracts that are contracts right.

People are obliged to.

To keep them ordering drop off so we have good visibility on the profitability of that business.

But yes, we are.

And a little bit of a strange situation of course with the pandemic hopefully behind us now.

Let's see.

Okay.

And the next question is coming from Silvia Cuneo Deutsche Bank. Please go ahead.

Thank you.

Everyone. My first of all thank you.

Meanwhile, our pawn loan to one of the long term.

Thank you Bob.

Hi, Corrado.

But when we set our volume base declines on the column.

How do you see the competitive landscape.

Now Nathan I'll offline platform.

Mobile and to become the number one goal.

So I think the market can grow.

And number 10 percentage points.

Great.

My second question is on product.

Yes.

I will confirm that indeed, our last peak.

Hey, guys.

John Bingle, Ralph does not move in Logan stopping embossed months once it has been the case.

Dark tomorrow.

I went back to a point.

The well spud to pop newer printed coupon.

Sure.

First our profile local work on.

Termination income employment in London.

Hey.

Thanks.

Thank you. So let me first answer that question around the around the U S.

The U S requires further investments in the strongholds and as to ways that we can go about that we can we can move resources from the rest of the U S. Two dose strongholds.

And we can use the fee caps falling away now as the fee caps fall away slowly will use more of the assets outside of those cities is the fee cap smooth move away quickly if we use a fee upfront.

That's how we look at it.

It's a lot of money right, it's actually quite a big additional investments.

I think what's also is something that people often don't see with US we spend the combined business has almost almost half a billion dollars of marketing.

Half a year so.

If you look at the runway for that it's about $1 billion of marketing.

That we spend in metals also referring to it we actually have quite some.

Some investments already going going for us and we do believe as let's say.

The legacy Jets management's debt debt's investment needs to be targeted at the major cities now it would be easiest to use the fee caps.

But.

We are where we are so we have to.

Wait that and therefore, we will likely move resources to get the same thing done.

But.

Around neutral EBITDA, I think thats, a sensible way forward after this year.

We won't change the employment model unless of course, the government requires that from US and then everybody has to change the employment model.

Regarding your question around London, Luke we plan to be the absolute largest food delivery websites in the whole of the UK, including lung and whether 10% absolute gain.

Again is enough or 20 or 30.

Thats difficult to say, we just know that the number one will make money and the number two and three will likely not make money.

And thats the more important thing to remember I think about our business.

Same thing in Germany rights of players that want to become the number two.

Well, that's going to cost a lot of money to be a serious number two against such a formidable company like likely film though.

And it's not likely to become profitable ever.

Thank you.

These are the most important things in our business.

Show Us.

It's a highly profitable number two they don't exist.

Sure.

Then regarding the delivery share well delivery in the first half is growing more than 700%. So clearly that's still going to going to become our largest segment.

Our aim is to decrease the losses on those delivery orders and turn those loss into a gross profit benefit.

And of course, we still have very very profitable marketplace business. So we don't necessarily need to be gross profit positive, but we are a rational company and we believe that the costs need to be tougher.

So this is the way we look at that also.

Yes delivery will grow if we.

Grocery chains also by a lot, but we feel that that business also needs to be profitable and therefore, we will do everything that we can to get there.

You have to give a specific guidance was before.

Okay.

Thank you Andrew.

The next question is coming from Marc Hesselink Ing. Please go ahead.

Thank you.

Actually my main question is about the.

Price increases and how you think about that going forward for the for the delivery.

Is that something that you approach on that country by country basis from city by city or maybe even restaurant by restaurant like really looking at.

To your to your network effects, how many new clients does it bring in house.

How much gross profit per order.

We would like to know how you think about that and also going forward.

Yes, Indeed, when you look at it in a very granular basis, especially from a competitive point of view.

No reason for a consumer to go to another platform the loss.

We should always provide.

<unk> price value proposition to the consumer that is one of our key.

Key strategic pillars, and we want to make sure that this is the case. So we're looking at it indeed like very granular with regards to competition, but even on a city level because also like providing some of the smaller cities might have less density than some of the larger cities so that item.

The impact pricing, but also whether it's.

Curious ours, our non <unk> businesses, so we definitely have a.

Various range of factors, which are being included in depth decision.

So that's something if you can optimize.

I don't know every month every quarter you look at it. Okay is this still the optimal level and you can change to the better.

Well actually that's the way we currently do it if we want to move to something that's basically changes every minute.

So we're actually investing some some money into those sort of projects.

And again for US there are several drivers it might be that for certain reinsurance and <unk>, we have a different rate it might be that in certain suburbs, we havent different rates and we look very carefully at the competition of course, but the most important thing to look at is the customer what is the customer willing to pay.

And I'll read the most affordable option, because we believe that.

Often overlooked also in our business, but the marketplace business has a much lower price point than the delivery business. So I am not talking about delivery fee, because that's where the focus is on a lot I'm talking about just the price of the foods macrophage restaurants are much cheaper than delivery restaurants, because they don't need waiters and that sort of thing.

So actually for the consumer we are mostly basically in all the markets. The most affordable choice, it's all real.

So we also would like to be the most affordable and delivery and we think that we can outlast any competition, because we have that marketplace business.

So in that sense.

We look at this.

Very scientific manner.

And then as follow up to that.

How do you then think about the couponing.

If I'm correct, they still pay a slightly lower commission rates typically then knock another restaurant.

And also the basket sizes are smaller.

A few more.

Is that something that you would like to repair or will you just accept that because they are bringing so many new extra clients.

Look you're talking to a bunch of <unk> right. So you are very much focused on the current situation. We are thinking about how does the company look like in three years.

How does the competitive landscape look like in fee FBS, how do Ao vs.

Et cetera et cetera. So we are looking far more long term and we're looking at.

What can we expect that the consumer is going to do in a couple of years from now so having worst terms on <unk>, while they bring us more new customers.

And a better product a better proposition.

While we also know that commission spending increase in the future that actually the amount of.

Of orders will increase the density of the network will increase all these things that will improve over the over the next couple of couple of years, you need to take into consideration when asking such a question. So yes. He was also have better terms, but also take take marketplace Domino's has better terms than.

Then a mom and pop shops, because thats more volume still we're very happy that we have dominoes, you could say, yes, but you are making less money on the dominoes with yes, and that is true but were getting far more volume.

Far more new customers.

It's much better for our brand image. So we have all these benefits and again. This is this is a this is a moment in history in Indiana, It's about who runs the largest profitable business in our country and if you don't run that business you are in a little bit of it.

Difficult spot.

Okay. Okay. Thank you.

And the next question is coming from Bryan Garnier. Please go ahead Sir.

Good morning.

Question.

On my side, if I may the first one is on price increases so if I might.

Alright, Chris Shaw.

$18 million.

Two of which have.

$2 million in the UK. So so where did you also increased prices.

Yes.

To be younger.

Okay.

Did you increase of your prices suggest.

Just to make sure.

Our competitors and so we are aligned.

However, because.

Feel about <unk>.

The key now.

Accept a price increase.

And I over our question is on the delivery. So you mentioned improved our unit economics.

On May 20 <unk>.

One.

Do you have any more.

<unk>.

<unk> pumped.

Pumps.

For instance.

<unk> a number of jobs.

Thanks.

Thank you so let me let me address your.

First question.

We constantly evaluate our pricing so we go up with prices, but we also sometimes go down if we see that we are getting a new competitor that is trying to undercut as we go down.

We don't always go up.

So do.

<unk> results, there, which is a positive results of all the things that we do essentially globally in that business.

I think it's important to understand that take a country like Germany.

Leverage delivery visa Europe.

I mean, our competitors in the USA charge, $5.50, or something we already euro. So we are very low and we have.

Also abilities to change pricing for.

Part of the city for restaurant chain and.

Part of the country et cetera et cetera. So we can go either direction. So if you also is where it was this it was everywhere.

And but it might be that in the north of the country, we lowered the pricing and in the south we increased it so.

Difficult question to answer in that sense.

Then Rick.

Regarding what we can improve and delivery.

A whole lot because first of all take the U K. That's the clearest example.

In the UK, we currently operate three models.

We currently grow 700% and obviously take a city of London, we've rolled out the employment model to parts of London now that means it's not efficient because.

You would have difficulties getting Korea to go to an area in which you run in our models. So efficiency is actually lower than what it could be.

If you run the same model in the whole city of London, Youre going to be far more efficient than what we are now so there is a lot of pieces.

<unk> gains there.

Also with 7% growth you need you have a lot of waste you have a lot of things that you need to do.

We need to improve.

You don't have the density.

You want to get I was just referring to that market share in London.

Obviously, because we have slightly less market share now than the numbers, one and two in London against it should be lower than these guys. If we have a higher market share than these guys identity should be better and in the end.

If we look at just the Kpis identity in countries like Germany, and Holland is much greater than what we have in London at this point in time. So we have a lot of improvements that we can make the current disclosed drop rates, we just know that that really goods compared to.

Everybody else.

As mentioned, Canada, France is Canada is a very profitable logistical business that we own and ex needed to operate in a country like Germany is better.

Of course, the economics are worse, because the labor cost is higher in Germany, but the drop rate is actually better than that.

In Germany.

It depends very much on the country, but we can improve.

Everywhere also because we have different systems right we have.

So a couple of models into in a company trying to deleverage.

Tac the knowledge et cetera. So we have a lot of things that we can improve.

I'll give you a very losses.

Maybe maybe one thing because I think the euro youre comparing their own figures.

You mentioned 31, which we which is depicted on the.

On slide 11, but you have to compare to 31 with the.

81, <unk>, sorry, with 81 with 31 on the <unk>.

On page 17.

Comparing year to round figures so.

It is 81 versus <unk> 31.

That's the right comparison is not the numbers that you mentioned.

Thanks, Thank you.

And the next question is coming from <unk> <unk> UBS. Please go ahead.

Okay.

Hi, good morning, Thanks for taking my questions.

Three quick questions from me. Please so firstly on Germany I appreciate.

Your newly entered competitor because I haven't had much of an impact but.

As you take it to the <unk> view do you feel the profitability in Germany can remain as healthy as it is currently.

And also are there any elements will be around plans.

Gentlemen that might need to be tweaked in response to.

Competition, such as rollout pace of rollout of logistics of groceries.

First one in Germany, and the <unk>.

In terms of U K restaurant supply I think it's 158000, even though the first half which looking like.

David could she is number two but I think you mentioned, you'll know number one on a like for like basis. If you can.

Clarify that.

But more importantly, I guess.

Again on Algonquin seems like last couple of months or so.

Restaurant recruiting is.

<unk> a little bit you can talk about your strategy that would be super helpful. In terms of how you drive choice from ear and become a leader in.

And last one is just a clarification I think you talked about running U S for breakeven is that a comment for 2022.

Or is there anything else you can highlight sort of looks like it beyond 'twenty two is that more of a medium term sort of.

Planning is how we should interpret those into three thank you.

Thanks, Yes. So the last question that is for 2022, because obviously still we have to pick ups now.

Expect announce row roll off in February next year for New York <unk> 22.

The accurate yes.

Year to look at the breakeven comment that methane.

Then regarding your question.

For Germany, while you should expect the EBITDA in Germany to grow up.

I think he was suggesting whether we could maintain the profitability.

Go up.

Regarding competitiveness Europe made a made a good comparison he arrived at <unk> in Germany is $2 billion. We have one competitor that is now re entering Germany that has $1.4 billion in GDP in the whole of Europe.

So you consider as you expected.

The company is going to achieve a number one position. So there must be after a number two position and again. If you are also a number two position the chances are you're going to make money in Germany are very very slim.

Germany is not the easiest country to compete because that's quite a lot of legislation in Germany.

Now put it mildly in from another country, we have a lot of legislation, but theres still think theres a lot of legislation.

In Germany, so it's going to be very difficult to become a serious number two in Germany, and you're going to have to invest hundreds of millions like was already demonstrated Jessica. This is already been attempted in.

We've had 40 competitors in Germany in the oilfield.

Our market leadership in Germany is not an accident.

We've competed with a lot of people over there.

So yes.

King.

We are looking at what competitors are doing if they do something smart, we'll certainly look at it.

If they do something stupid you see a lot of couponing again, right. So a lot of free foods being handed the way again just to give you. The example for a generic because your lives in Berlin and then tries to use banks. So are your first gets a 20 euro coupon.

Danny orders grocery any gets to free chocolate boss.

I remember you Didnt paper to grocery right.

And any guess two days two days later he gets to vouchers are five year us I don't want to make that calculation on the return of investment, but that doesn't sound like <unk>.

Like a great plan forward. So if that's what the competition is going to do by all means they should they should do it.

Regarding the restaurant count for.

Yes.

The 58000.

First of all like I said is on like for like so if I look at our 58000.

100%, 97% of that is really active in the sense of like having.

Received an order over the last 13 weeks.

And we also obviously checking on competitors' websites.

Our competitor websites. This number is much smaller so when you compare that for example, with one of the competitors you mentioned that number was only 80% so that actually would.

Leads to a number which is more like 47000. So that's quite some get there and then also like if you look at the state actually.

That's quite some multiple lines, which are counted.

As multiple entries.

So that the extreme example is the restaurant in Croydon Indian restaurants, where we have one entry and competitive <unk> 'twenty three entries.

Couldnt, even give you the name here.

And then there's multiple examples of that.

So just purely taking that listed count.

Doesn't greatly.

Works, so well and also like.

I mean, I think the number was not clearly stated the absolute number but it was at the competitor at a 10000 restaurants, which was <unk>.

Almost 30% increase which would guide me to a number of they went from 30000 to roughly 40000 of restaurants. So.

It was the right.

Wording and what they said in the press release and that number is clearly significantly lower than what we have in the UK.

And last but not least even then fts date would be at a similar level what it also clearly shows us.

Our restaurant is actually for our restaurant partners get a way higher on a per restaurant, which is also an interesting metrics.

Even if there would be just about 20% below our active restaurant the states.

We are almost doing double the amount of orders so the order count per restaurant in our case is much much stronger which implies that actually our network effects are much much stronger.

And secondly, probably the estate, which is being at it is not necessarily the one the consumer once <unk> is providing a lot of orders.

Got it. Thank you two quick follow ups in Germany are there any chain restaurants that are actually exclusive to you and in the U K, maybe you can talk about.

How you drive the excellent choice from here.

What are the steps you've taken I think you've talked about local hero starting to come on the platform.

After use soccer logistics et cetera.

We don't do exclusivity contracts in Germany.

That's something generally we don't want to restrain the market and we believe in the long run given the network effect and the market position we have.

And with half more.

Of the supply side as well.

Maybe on Germany also adding because you were asking a bit of an outlook.

Obviously blend is probably the market where competition has been.

Around for the longest some of your competitors have been around for more than <unk> more than a year are approximately year by now.

And if you look at <unk> data, which is credit card data for Glenn we are still at.

At 90%.

Sure and the competitors are.

Yeah at four and then six and then basically not.

Not existent so.

<unk>.

And Directionally dad dash has more or less flat over the last couple of months. So like you see like even in a city, where our competition has been around for longer.

The share gains are not really significant but obviously it could come from zero you will always have some share gains with regard to.

Deals in the UK.

And most of the deals.

Changes are also not necessarily exclusive.

In the U K like I said, we're not necessarily <unk>.

<unk> for exclusivity deals generally.

Thank you.

And the next question is coming from Sheila ABN Amro Auto. Please go ahead.

Yes, good morning.

I would like to go to slide 10 first.

You are currently investing your very significant amount of money into delivery.

Fully acquire new clients can you give us a bit of an indication what the profile is of the customers that joined the platform through the delivery channel.

It's the profile in the order behavior similar to existing clients.

Or due to exhibit a different behavior.

Maybe taking the UK as an example.

You have a delivery share of about 40% so that means that UK consumer.

Currently orders around for delivery orders and to a roughly six marketplace orders.

This profile per annum is this profile the same for all the cohorts in the U K.

More specifically what is the splits between delivery of marketplace orders for the 2021 cohort that you recently signed up.

And in.

Extension of that question.

We take the marketing cost plus the losses in delivery.

Customer acquisition costs.

What is the payback periods that you expect for 2021 cohort.

And how does this payback period compared to previous cohorts.

It will be my first question and then I'll have a follow up thanks.

Thank you level.

Then.

The second question with just your remark about the call first of all our consumers rarely know, whether we are delivering a fruit with somebody else before that order. So we have no delivery customers or marketplace customers. I think this is a misconception from the markets.

Yes.

I have to admit that we must do a better job explaining that but we do not have delivery cohorts. We don't have such a customer we just have customers and you can also see it as India.

And the order frequency behavior, because that applies to the whole customer base.

And of course, even if we had a record year in new user addition, most of our customers are actually existing existing customers are they influence the order if we could see most.

And I think what you should really understand about what we did in the U K.

Is that.

Adjusted was very late with the logistical rollouts. So that also meant that adjusted lost quite a few customers to other players over the course of the last couple of years in which for instance, they did not have my golf or they did not have the local seller bar or they did not have.

A specific sushi place that's that people were interested in so we did two things. So first of all we had that and then second of all we said okay. The customer please come back to adjusted because we now have the offering and by the way it's much cheaper than that with the competition. So you had good grounds to come back and then places logistic order with us, but also the marketplace lenders.

So we have reduced churn significantly, but we also and you see that in the cohorts. We have reactivated these older cohorts those people might have left just eat in that back now.

And that back not only for the delivery orders, but also for the <unk>.

For the marketplace orders so as we said we're agnostic about it I mean, we need to give the customer what the customer wants and if the customer wants to order with a salad bar that we have to do delivery for we do at NSS.

Our marketplace business keeps on growing it's highly profitable and the and the delivery business is profitable in the U S and Canada and we need to increase the profits also in Europe, and because the unit economics are more challenging because of the labor costs and lower ticket sizes, the scale needs to be bigger than what would be necessary, let's say in Canada or the U S.

To get to profitability.

But this is the way we look at it. So we look at it very much from a customer perspective, and a customer again I mean, you can see it on our website, whether we deliver or.

Our restaurant, so that distinction doesn't exist for the customer.

And with respect to the second question about the return on investment.

Customer how we look at it and we look at it per market is that.

We divide.

The marketing we do the marketing goes divided by the new customers and that is the customer acquisition cost.

And then we.

Compared with the gross profit per customer over its lifetime and as you can see from from.

For <unk>, the lifetime of a customer Ganesh.

Can easily be eight years.

And actually in all the countries, where we are active.

The customer the return on the new visual customer esports with Dave.

The only big differences of course that in OLED in Germany for example.

The gross profit per customer is significantly.

Better.

And then the.

The return on the new <unk> opening on investment opening individuals on a new visual customer is significantly higher so you recoup your acquisition cost.

Within let's say, one and a half years, whereas in countries where growth program for orders lower either because.

More competition, we charge a delivery fee right now.

It will take a little bit.

Longer before we can recoup our.

Acquisition cost actually.

In all the countries we are active the return on the investment disposal.

We would certainly meet.

The thresholds over an average investor.

Pretty good.

And then follow up question and I would like to move to slide 11, where we provide rich on profitability.

If you look at our.

You'll see that the fee caps to cut about $110 million in profits for the first half.

How much of these caps have already <unk>.

No longer applicable in the second half.

And also if I then look at the base for the second half if I take out the voluntary rebates.

Price increases that you pass through in August.

Based on revenue moves to a loss of about $17 million and then taking a normalized funeral and fee caps in the second half.

Youll get probably close to breakeven.

Still on the low end of your guidance, you expect to make another $100 million loss or.

Or more in second half.

And can you give us a bit of a feeling where do you intend to invest additional investments which will come over.

What you've already invested in the first half, so which regions and which channels should we think about.

Yes, So let me take the CCAR question I'll refer to second one too through Europe.

The fee caps.

A smaller part of that is already gone.

And unfortunately, because a lot of this is actually New York a large chunk is still in New York and therefore, it's only smaller smaller part at this point and a point in time.

And we do have some expectancies, there's a couple of the other cities on.

Going to retract the fee caps.

But at this point is smaller and smaller part of that one other thing.

Second question.

Yes, so with regards to.

Profitability in H two.

We have given guidance.

And previously that actually included an assumption that the fee caps.

Especially also in New York.

<unk> is now clarified that despite that she kept not falling away, we still stick to the guidance. So you will see us not massively improving in the second half as compared to the.

To the first half.

We also will invest additional amount of money and specifically also like rollout of logistics for example in the UK, we are still rolling out more cities.

More areas within the cities, mainly in London, we've already rolled out quite a bit but we've not yet covered the whole of the city and usually especially the beginnings of the rollout to actually.

Have more efficiency levels, so, especially the beginning let's say six to 12 months of these rollout cost quite a lot of money.

We're also hoping for additional <unk>.

<unk> of maybe some curious.

Across our various countries.

There is in certain countries I'm curious I'll switch, which we wanted to add a.

We have explained previously these unit economics are a bit different.

And then there is also some investments in two hour at corners, especially also like it it's tough.

A few other things, which contribute to that so that would be.

The main focus on our investments.

Thanks, and just to clarify did you mentioned that it takes about 12 months for a new SKU breadth to reach normal.

Efficiency is a bit dependent on the city.

You cannot generalize it but.

But like so if you if you add a hop in a city, where you're already active and you're just replacing that can go a bit faster because you already have the scale and density so it depends very much on the <unk>.

Partners, you are adding and how fast do you actually get to a certain scale and density in the city.

But 12 months would still be kind of a good.

Indicative timeframe for hormonal purchase yes.

Thank you very much.

And the next question is coming from Andrew Farkas HSBC. Please go ahead.

Yes, Hi, guys. A couple from me if I may just wondering coming back to your guidance again is there anything in that feel sort of plans with grocery partnerships coming coming through I mean is that accounted for or would that be incremental to the guidance you put out there.

Secondly.

You are increasing prices, but it seems like quite early in the new strategy I'm, just wondering what sort of giving you the confidence to do that is it more driven by what youre seeing in the market around sort of competition raising prices or is it more driven by sort of the behavior of customers that youll seeing effectively youll sort of winning back those customers already so you're a bit more.

Comfort in that.

And then the last one for me was.

Obviously, a lot of the gains that you've had to date sort of come from.

So the high volume <unk>. So I'm just wondering if there's any plans to sort of push into more premium areas a bit more aggressively in the future.

Whether that sort of an area that is perhaps a little bit small sorts followed.

Yes, so that last question can discussions are good so.

Especially in London. We are also very very busy on getting those more.

Exclusive restaurants online.

That however is a smaller segment of the UK market I think it's very important to understand that that's of course, if you live in London, you think that thats the entire business, but it's actually quite a small segment.

And therefore also let's AAV, we would be able to add all these restaurants is not going to make a material impact to.

So the amount of orders.

Even with our competitors the logistical guys Trust me most of that businesses is <unk> is actually not.

Local local heroes although of course.

Does the image.

These guys sometimes portrayed most <unk> so for us the most important thing to fix was actually the <unk> in the UK and not so much. These local heroes, but we do realize that for London, we need them and this is also why we signed up so many in the last in the last year.

The pricing depends on a lot of factors.

Obviously, if we are still working on getting a lot of customers to go from one of our competitors is back to Josh seats, then yes pricing is very important.

If the customers are back because in essence why did the customers leave because we did not have certain <unk>, mostly or certain sorts of investments. So as you fix the supply bits and you have the customers back you don't say need a cheaper delivery fee right.

And this is also why if you look at markets and digitally.

Just mentioned if you don't have a certain supply in one of these auto legacy just eight markets, we still have to do that and we start to load the delivery fee to get those customers to come back.

And of course this is a double edged sword because on the one hand, we gain a lot of customers on the other anti competition loses a lot of customer so I think thats always.

It's a good situation for us.

That happens so in the UK, it's actually easier for us to raise prices and elsewhere.

Similarly of course in country in which we're strong like Germany and Holland.

But yes, we look at that.

Utilization of the network. So we also don't want to increase prices to a level that the orders go down right. So we also want to keep up the growth so that.

To growth.

It is more important to us in relation to the to the pricing and anything else, we want to keep up the growth we see that.

These delivery restaurants get us 11.

Quite a lot of new customers. So this is why actually the trade off is between growth and.

And pricing and upside between competitors.

And pricing.

Grocery is included in the year in the guidance.

So it's.

It is important to understand that we rollout grocery in Europe on the back of the delivery network and the delivery network needs to improve the unit economics. So groceries included.

Obviously in a country like Canada, if you add something that's already profitable.

That's always fine of course.

Even if you have to build ups, that's always a good situation.

So yes. The grocery is included in the guidance.

Thank you for the answers.

Yes.

Okay.

Okay.

Okay.

Operator.

Yes.

Right.

So it sounds like.

Excuse me operator are there more questions.

Excuse me operator are we still on.

Excuse me are we still on.

60, I mean a disconnect.

We probably should retirement.

I mean normally funding advantage goes back home.

I hear you.

Thanks, a lot of I think our operators on.

[laughter] math, whether you want to talk about.

Maybe I can ask you yes.

Yeah.

Thank you.

Hey, Ron.

So please continue Ms Alicia.

Hello can you hear me, yes, yes, sorry.

Sorry.

Let's see.

<unk> and <unk>.

Okay, great. Thanks.

I was actually just on Germany could you just talk a bit about the initial learnings that you're seeing with grocery and are you acquiring a lot of new customers.

Orders coming from your existing customer base.

And then secondly on rest of World, specifically, Australia could you just give a bit color on the unit economics in Australia, given that skinny that some key drivers of the losses in that segment, perhaps sort of where the shack delivery is now and then also what's the latest on these people rollouts as well and are you expecting to move to a fully employed model.

And to what extent could that put more pressure on that EBITDA that.

And then finally just on current trading if you could just share a bit about what you're seeing in Q3 in terms of churn in the market that have come out of lockdown.

The most and then specifically also on the <unk>.

Market place in the UK, if you could just share what you're seeing at the moment. Thanks.

Thank you.

Let me first address the last the last question.

It is also a little bit difficult to address because we're in some are enough to say nay.

It will also in Q3, but summer is always always not the growth season for us.

We've disclosed those dose cohorts are the cohorts are strong wholesale also now.

But obviously we are in the summer period, and all our people actually have taken the opportunity to go on holiday.

So it's very difficult now to say.

Trading is higher or lower than it is as expected for the summer period.

And we have reiterated the guidance for the 45%, Ohio growth.

Still stand behind to.

We stand behind that.

Then regarding the unit economics in Australia will actually Australia is our fastest growing country.

Also in which we invest most.

And I would say that the also the price investments that we're making in Australia are quite significant.

So I think the current situation to look at is not the ratchet too as we fixed a lot of the issues in.

In that business don't forget that we were actually writing off Australia last year and now it's our fastest growing country I think there's quite a lot of move moving moving parts.

Our testing.

The scuba model in Sydney, which is growing quite quite well and we're speaking with the Australian governmental to see whether we can.

Get into a situation that we can rollout and employed model, but in a competitive way it's important for us to be able to compete with the <unk> model and therefore, we need to we need a couple of things from this trading and government and we are in active discussions with.

With them, we do expect that that's going to have a positive impact on.

Our business because of the service levels, we do see that.

If you have less churn on the curios. If you can educate the periods that the service actually becomes better.

And of course, the visibility is very important.

For us.

But don't forget that this is a very small experiment in Sydney and most of the businesses on the fleet on small actually in Australia, which is also by the way legal and the site is so it's not that we are trying to correct something thats.

That's not in accordance with loss like for instance, as the case of Europe, either with very specific that Spain, and Italy Feedlots model is just out of the question.

The grocery question for you.

I think one question was also what.

Logistics share in Australia, that's around 80%.

So majority of orders are with logistics there.

With regards to Germany, or the grocery question.

Yes, the best picture, we actually have from groceries.

In Canada, where we are already doing 100 itself.

Thousands of orders actually from grocery partners.

We have also in Germany, a couple of retail partners.

For example.

Shallow gas stations as one example, the shops basically from the gas stations.

Our spa stores. So the experience we have so far is like it's.

Pretty much complementary to the food offering we have incentive of like.

You're basically expanding the current peaks of food ordering so like you have the first bigger which is basically food ordering when you're ordering your pizza.

Okay ball and then afterwards, you're complementing you might barring snack bars, our chocolate.

Our dream home and the nice thing about that is actually that this I mean, it's actually an improvement for our fleet utilization and.

Youre actually expanding at peaks of your of your fleet, which is a very helpful, especially on the implied models because.

Just usually have.

Very small window of a peak and food delivery, which is usually about an hour and a half or so and a lot of the countries legally we have to we have to staff people at least three hours and employed model for example, and therefore widening this peak.

It's really great.

Improvement of the utilization of our fleet. So we already see some positive impacts from that.

In terms of unit economics.

It seems to be in line with delivery, what we see so far.

Great. Thank you.

And the last question is coming from Andrew Gwynn, Exane BNP Paribas. Please go ahead.

Hi, good morning good.

Good afternoon, even for you guys.

Two questions then if I can very quickly.

Firstly on the guidance, obviously, there is quite a significant range for the second half I think about 140 million gap.

Implied between the bottom and the top.

So I'm just wondering if you can give us a bit more help on where in the range you would expect to land.

The second question, which is from Matt I appreciate your thoughts and bring any obviously, you're very significant grubhub I guess might be 50% of grubhub.

But the other markets outside of U clearly very very very competitive so any kind of big plans is there anything we should have in mind there.

Any help would be much appreciated. Thank you very much. Thank you.

Comment on your first question and then hand over to Matt.

Regarding the guidance for <unk>, you should think about HD was slightly better than H, one and.

And the reason for that is of course, the fee caps in New York dose or doses quite significant.

And therefore, we expect.

Improvements, but you should not expect that to all of a sudden become profitable in the second half.

Because also we are investing significant amounts to arrive we're not we're not done.

Another example was of course, London, we want to be the absolute market leader in London.

We need to be let's say two to three times bigger than the number two in London, and then we're going to be satisfied.

So we have no reason to doubt to dial down the investments, especially in the UK, but also in other countries.

But we want to we want to make sure that would be a decrease the <unk>.

Losses, because I think its a sensible thing to do.

Matt.

And so thanks for the question.

I wouldn't say that the.

On the Grub strategy historically has been very much in line with the strategy, which is focused on the major metro areas focus on your leadership in the network effects that that branch. So that you can drive profits to invest further and so we've always done that.

Well I think we are the market leader in multiple densely populated urban areas around the country, what we've seen in the last.

Full year, especially around Covid is the massive acceleration of the suburban.

Quarters, which grub was not positioned to take advantage of and we did not have the deep PFS our relationships at the time and so when you saw.

The multiple growth outside of the dense urban areas. We did not we did not capture that however, we also did not erode our positions in the core metro areas, except for the fact that the majority of residents.

Core urban areas during the pandemic, they're now back are coming back.

Office offices are reopening, but are not fully open and so we're going to continue to drive as hard as we can on those markets that we believe we are leaders and we can drive a significant profitable.

Business and so we're not deviating strategy, we're just.

Really really aggressively investing behind our strength.

One <unk>.

In detail in the U S market as the National TV ads are are very economical as compared to local or regional television ads. So we have an aggressive campaign on the TV, which obviously reaches all markets.

All across the country. So as we've been building out our tos, our relationships over the past year and expanding our supply to match that of our peers. So that we can compete in the outer districts, even though thats not.

Our focus.

Our core Metro areas are also receiving the same TV ads now.

In Manhattan, our seamless has been a religion for years.

That means that the grub brand has grown aggressively and in fact that surpassed the seamless brand in New York. So that's why it's time now to transition was seamless brand over to Grub. So that we can continue to leverage our assets behind the strength.

Further accentuate our leadership progression there, but that's that's.

An executive summary of the U S strategy, and obviously more to come in October.

Okay, I appreciate that and I guess just to clarify middle of the range should be the kind of early thinking for the full year. So I'm slightly better second half is that right.

While the JV losses, minus one 3% and if it's going to be better in the second half should be better than the one of the 3% months, yes. Okay.

Great. Thanks, very much have a good day.

My wife's thanks, Thank you.

I think we're done with the questions. So I'd like to round off this analyst and investor call by thanking you for participating and your questions should you have any additional questions or remarks, please reach out to our investor relations team.

Ladies and gentlemen. This concludes this event call you may now disconnect. Your line. Thank you.

The conference is no longer being recorded.

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