Full year results

Year ended 31 December 2014

17 March 2015

Disclaimer
This presentation, which has been prepared by JUST EAT plc (the "Company"), includes statements that are, or may be deemed to be,
forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including
the terms believes, estimates, plans, projects, anticipates, expects, intends, may, will, or "should" or, in each case, their
negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts
and include statements regarding the Company's intentions, beliefs or current expectations. Any forward-looking statements in this
presentation reflect the Companys current expectations and projections about future events. By their nature, forward-looking
statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the
outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation
regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You
should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. No representations
or warranties are made as to the accuracy of such statements, estimates or projections. Other than in accordance with its legal or
regulatory obligations, the Company does not undertake any obligation to update or revise publicly any forward-looking statement,
whether as a result of new information, future events or otherwise.
In making this presentation, the Company is not seeking to encourage any investor to either buy or sell shares in the Company. Any
investor in any doubt about what action to take is recommended to seek financial advice from an independent financial advisor
authorised by the Financial Services and Markets Act 2000.

Todays agenda
Highlights

David Buttress

Financials

Mike Wroe

Strategy

David Buttress

Q&A

Highlights
How did we do?

Orders up 52% to 61.2m (2013: 40.2m)

61.2

GMV1 up 53% to 1.04bn (2013: 0.68bn)

40.2

Revenue up 62% to 157.0m (2013: 96.8m)

Underlying EBITDA2 up 131% to 32.6m (2013:
14.1m)
Cash generated 38.1m (117% Underlying EBITDA)

Continued investment for long-term growth

Active users3 up 37% to 8.1m (2013: 5.9m)

25.3
13.9

FY 2011 FY 2012 FY 2013 FY 2014

Orders (millions)

1.0+bn
GMV

Highlights
How did we drive results?

Investing in our brand

Mobile-led execution
Progress on our three strategic initiatives:
improving the consumer experience
bringing greater choice
driving channel shift

Seven M&A transactions completed, including Alloresto and iFood

three further transactions completed post year-end

Financials

Mike Wroe
CFO

Income statement
m
Revenue

2014
157.0

2013
96.8

Growth

Cost of sales

(16.1)
10%

(10.0)
10%

61%

(52.0)
33%

(38.0)
39%

37%

% of Revenue

Significant on-going investment

Marketing
% of Revenue

(36.7)
23%

(23.4)
24%

57%

Operational leverage continues

(19.0)
12%
(107.7)
69%

(11.7)
12%
(73.1)
76%

62%

Underlying EBITDA margin

(0.6)
32.6
21%

0.4
14.1
15%

% of Revenue
Salaries

Overhead costs

% of Revenue
Total Admin Costs
% of Revenue
Joint venture and associates
Underlying EBITDA

Underlying EBITDA margin

62%

47%

131%

Strong revenue growth

up 65% on forex neutral basis

expansion
All segments performing

Income statement
m
Underlying EBITDA

2014

2013

Growth

131%

32.6

14.1

Underlying EBITDA margin

21%

15%

Depreciation & amortisation

Long term employee incentive costs
Exceptional items
Foreign exchange gains and losses

(6.2)
(4.9)
(2.7)
0.2

(4.0)
(1.7)
(1.0)
(0.6)

Operating Profit

19.0

6.8

Operating Margin

12%

7%

Other gains
Finance income
Finance costs
Profit before tax
Taxation
Profit after tax

38.2
0.4
(0.2)
57.4
(5.6)
51.8

3.4
0.2
(0.2)
10.2
(3.4)
6.8

9.8
4.2

1.5
1.4

Basic EPS (p per share)

Adjusted EPS 4 (p per share)

Underlying EBITDA up 131%

Operating profit up 179%
Other gains are non-cash,

179%

non-taxable

Adjusted effective tax rate4

of 22.6%
662%

Adjusted EPS up 200%

Success-based revenue model

89% of revenue driven by consumer orders
Order-driven (B2C Revenue)
Commissions

Connection fees revenue

Same price for consumers as

ordering directly from TRs

One-off cost paid by TRs to join

the network5

Rate charged varies by country

Pricing depends on market

maturity

76%

Payment card/admin fee

revenue

Small fee typically charged when

consumers pay online

13%

6%

5%

Top-placement fee and

other revenue

Promotional top-placement

Branded commodity products

(bags, pizza boxes, menu cards,
etc.)
9

Revenue drivers

ARPO

Orders (millions)

+9%

61.2
40.2

2.29

25.3
13.9 +82%
FY 2011

+59%
FY 2012

(2013: 2.11)

+52%
FY 2013

FY 2014

Takeaway Restaurants (000)

Active users (million)

45.7
8.1

36.4
29.9

5.9
4.1
2.4
FY 2011

+71%

+44%
FY 2012

17.0

+37%
FY 2013

FY 2014

FY 2011

+76%

+22%
FY 2012

+26%
FY 2013

FY 2014

10

Revenue drivers
Orders (millions)
61.2

Frequency of orders increased

Orders per restaurant growing

40.2
25.3
13.9 +82%
FY 2011

+59%
FY 2012

+52%
FY 2013

FY 2014

Takeaway Restaurants (000)

Active users (million)

45.7
8.1

36.4
29.9

5.9
4.1
2.4
FY 2011

+71%

+44%
FY 2012

17.0

+37%
FY 2013

FY 2014

FY 2011

+76%

+22%
FY 2012

+26%
FY 2013

FY 2014

11

Revenue growth
FY 2014 Revenue growth by segment (m)
66%
Forex neutral:

10%

83%7

16%

96%
13.5

43.9

1.4

1.2

UK -B2C

UK - B2B

DK

62%
65%
0.2

157.0

Head Office

Revenue FY
2014

96.8

Revenue FY
2013

Other

12

Strong operational leverage

Employee costs

Marketing

Overhead costs

52.0m

36.7m

(+37%)

(+57%)

19.0m

33% of revenue

23% of revenue

12% of revenue

(2013: 39%)

(2013: 24%)

(+62%)

(2013: 12%)

Revenue grew 62% to 157.0m

Continue to invest for growth

Gross margin remains steady

Continued to benefit from operational leverage

13

Underlying EBITDA by Segment

m

2014

2013

UK
Margin %

45.9
40%

25.5
37%

131% increase in underlying EBITDA

DK
Margin %

5.1
40%

4.6
40%

UK Underlying EBITDA margin up to 40%

Established geographies
UK + DK
51.0
Margin %
40%

30.1
37%

Other segment revenues up 83%

Other
Margin %

(11.8)
(40)%

(11.7)
(72)%

JV and associates

(0.6)

0.4

Head Office

(6.0)

(4.7)

Underlying EBITDA
Margin %

32.6
21%

14.1
15%

(up 97% forex neutral); losses flat

Continued investment in growth

tech and product

marketing

centre

14

Net income
FY 2014 net income to Underlying EBITDA (m)
(0.6)

(0.2)

(38.2)

52.0

3.3
6.5
2.1

4.9
2.7

Net
Net
income8
income8

Taxes

Forex

20.6

(0.3)

0.8

32.6

(0.4)
22.4

Other gains Exceptional Long term Adjusted

Acquired
Tax
Adjusted Net finance
items
employee net income amortisation adjustment net income income and
incentive
NCI
costs

Taxes

Internally Depreciation Underlying

generated
EBITDA
amortisation

9.8p
Basic EPS

4.2p
Adjusted EPS9

15

117% cash conversion

FY 2014 Underlying EBITDA to operating cash flow bridge (m)
133%

117%

6.0
11.5

(4.4)

(2.3)

(0.1)

43.3

(5.2)
38.1

32.6

Underlying Increase in Net change

EBITDA cash due to in other
restaurants working
capital

Tax

IPO costs

Others10
Loan
Others10 Normalised
operating related to
cash flow
LTIP

Statutory
operating
cash flow

16

Cash flow
m

A
B
C

Underlying EBITDA
IPO costs
Other
Operating cash flow
Change in working capital
JSOP receivable*
Taxes paid
Net cash from operating activities
Net cash used in investing activities
JSOP subscription proceeds*
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning
of the year
FX movement
Net cash and cash equivalents at the
11
end of the year

2014

2013

32.6
(2.3)
(0.1)
30.2
17.5
(5.2)
(4.4)
38.1
(19.3)
5.3
78.9
103.0

14.1
(1.4)
(0.9)
11.8
11.6
(4.2)
19.2
(7.7)
11.5

61.6
(0.5)

50.0
0.1

164.1

61.6

Net cash from operating activities 38.1m

Net cash used in investing activities 19.3m

7 M&A transactions, including Alloresto and iFood

Net cash from financing activities 78.9m

117% conversion to operating cash flow

Impacted by JSOP loans

Net proceeds from the IPO 95.7m less 18.1m dividend

paid in April 2014

Since year-end, c. 35m invested in M&A

17

Balance sheet
31 Dec
2014
51.2
7.2
28.4
86.8

31 Dec
2013
10.2
5.5
12.1
27.8

Cash and cash equivalents

Other current assets
Current assets

164.4
12.4
176.8

61.6
4.9
66.5

Trade and other payables

Other current liabilities
Current liabilities

(59.1)
(6.5)
(65.6)

(33.4)
(5.1)
(38.5)

Net current assets

Non-current liabilities
Net assets

111.2
(14.2)
183.8

28.0
(2.2)
53.6

Share capital and premium

All other reserves and Non-controlling Interests
Total equity

126.2
57.6
183.8

55.8
(2.2)
53.6

m
Goodwill
Property, plant and equipment
Other non-current assets
Non-current assets

Goodwill and other non-current assets

increased due to M&A activity

Cash includes IPO proceeds

Cash balance includes 27.7m of cash

due to restaurants (2013: 16.2m)

Non-current liabilities includes amounts

due to get 100% ownership of all

subsidiaries

Post year-end signed 90m RCF;

undrawn to date
18

Key takeaways
All segments continue to perform

Revenue

EBITDA

Cash
Conversion

+62%

+131%

117%

32.6m

38.1m

157.0m

(2013: 96.8m)

(2013: 14.1m)

(2013: 19.2m)

19

Strategy

David Buttress
CEO

What delivers success in Online Takeaway?

Selecting global markets with real long-term opportunity
Clear leadership in each market (at least 3-5x size of
competitors)
Excellent local execution many small details

21

How JUST EAT delivers

A scalable, proven, innovative mobile and web platform
A world-class, industry-experienced team
Deliver sustainable and profitable long-term order growth
Takes time to build a strong local market position

22

Clear market leader

Region

Europe

Americas

Country

Ownership

Launch

Market position

UK

100%

Mar-06

#1

Denmark

100%

Aug-01

#1

France

80%

Dec-11

#1

Spain

100%

Nov-10

#1

Ireland

100%

Apr-08

#1

Switzerland12

100%

Mar-11

#1

Italy

100%

May-11

#2

Norway13

100%

Dec-09

#1

Benelux

100%

Jul-07

#2

Canada13

100%

Aug-09

#1

Brazil12

30%

Aug-11

#1

Mexico

100%

Feb-15

#1

Source: Google Analytics, JUST EAT management estimates

Note: Countries in bold font indicate JUST EATs key markets

23

Significant runway for growth

Total annual delivery takeaway market (bn)
21.3bn

8.8

2.2
2.6
2.0
5.5

0.2

UK

Denmark

Source: Market size as per Callcredit Report and/or JUST EAT.

France

Canada

Spain

Brazil, Norway,
Switzerland, Italy,
Ireland, Mexico, Benelux

24

Significant potential at scale

UK

Denmark

France, Ireland
and Spain

IT, BR, MX,

BE, NL,
NO, CA, CH

5.5

0.2

4.4

11.2

21.3bn

Potential JUST EAT % share

at scale14

45%

60%

45%

30%

n/m

Commission rate
(2014)

12%

10%

10-12%

c.10%

n/m

Implied JUST EAT commission

revenue at scale (m)15

297

12

213

344

866m

Implied other revenue

(m)

75

67

95

243m

Total implied potential

revenue (m)

372

18

280

439

1,109m

Current revenue as %
of potential

30%

74%

7%

c. 4%

c.15%

Overall Takeaway Delivery

Market size (bn)

Source: Market size as per Callcredit Report and JUST EAT.

Total

25

Strategic initiatives

Improving
the consumer
experience

Bringing
greater
choice

Driving
channel
shift
26

Improving the consumer experience

Continued innovation
Better apps and web platform, 50 UK updates
Order Tracking

Restaurant technology
Product improvements
Web refresh
Saved cards rolled out internationally
Drive distance/geo-location/maps for iPad

27

Bringing greater choice

Over 45,700 restaurants
over 9k net additional restaurants contracted

Collection market significantly grows opportunity

adds 2.6bn16 addressable potential to UK
collection orders growing dramatically, now
representing c.2% of orders

dedicated collection focussed app acquired July 2014

28

Driving channel shift

Building the brand
TV advertising in 11 markets
#Minifistpump campaign

Top-of-mind awareness at 44%17

Use of trains, taxis, trams and Rams (sponsor Derby County FC)
Mobile-led strategy
c. 61% of UK orders are now made through mobile devices18
Launched iPad, Android tablet and Windows app in UK

29

Disciplined approach to M&A

Out-of-market
M&A

In-market M&A

Transactions
completed

Focus on leaders in markets of significant scale

Consolidate in-market position by acquiring complementary businesses
Proven track record of acquiring, integrating and operating
Cash on balance sheet plus new 90m RCF
Seven acquisitions completed in 2014
Post year-end19: eat.ch (Jan 2015); Sindelantal Mexico (Feb 2015);

increase stake in Brazil JV

30

Long-term strategic leadership in LatAm

Brazil and Mexico: two largest markets20 in LatAm for online takeaway
JE now clear leader in this thriving region
Mexico
Recently acquired Sindelantal Mexico (Feb 2015)
Clear market leader
Early stage business growing rapidly with significant potential
Brazil
One of the worlds most exciting markets for online takeaway
Joint venture with iFood completed in November
JE stake 30% (increased from 25% post year-end)
IF-JE has clear leadership with 80% market share21
JEs 2nd largest market on an order basis21; growing rapidly

31

JUST EAT proven, global executor

Another year of excellent growth
investing for long-term

further margin improvement

Continued momentum into 2015

revenue expected to marginally exceed 200m at

current exchange rates

All segments delivering

Delivering sustainable, profitable, long-term growth
32

Thank you
Any questions?

Appendix

Footnotes
1. Gross Merchandise Value.
2. Underlying EBITDA (defined as earnings before finance income and costs, taxation, depreciation and amortisation) excludes the Groups share of
depreciation and amortisation of joint ventures and associates, long term employee incentive costs, exceptional items, foreign exchange gains and
losses and other gains and losses (being profits/losses arising on the disposal of operations). At a segmental level, Underlying EBITDA also
excludes intra-group franchise fee arrangements and incorporates an allocation of Group technology and centre costs (all of which net out on a
consolidated level).
3. An Active User represents an account that has placed at least one order within the last 12 months.
4. Adjusted to remove amortisation of acquired intangibles, long term employee incentive costs, exceptional items, other gains, foreign exchange
gains and losses and the tax impact of these adjusting items.
5. With the exception of Denmark and France, where Takeaway Restaurants (TRs) also pay a small annual subscription fee.
6. Average revenue per order (ARPO) is calculated by dividing total commission revenue and payment card admin fees by the number of orders.
7. LFL growth of 55%; LFL at constant currency 64%.
8. Attributable to owners of the company after adjusting for (0.2)m due to Non-Controlling Interests.
9. Adjusted to remove amortisation of acquired intangibles new measure of Adjusted EPS (2013: 1.4p).
10. Others includes acquisition costs, foreign exchange gains and losses, results of joint venture and associates, losses on the disposal of fixed asses
and cash long term incentive costs.
11. Cash and cash equivalents are shown net of borrowings of 0.3m (2013: nil).
12. Post year-end ownership of Switzerland increased to 100% from 64%; that of Brazil to 30% from 25% post year-end.
13. Canada and Norway exclude restaurant chains.
14. Managements strategy is to target a 45% market penetration in the UK and 30% in other key countries as per its mature Danish market. There is
no certainty that this penetration target will be achieved or in what timeframe.
15. Calculated by multiplying market size by target market share and commission rate. This revenue figure is illustrative only and is based on a target
market share which may not be achieved.

35

Footnotes
16.
17.
18.
19.
20.
21.

Phone and collect market.

Based on a UK survey conducted by YouGov of adult takeaway users.
Including those orders placed using tablet devices.
Increased stakes in Alloresto.fr to 80% from 50%; and in eat.ch to 100% from 64%.
Management estimate.
On 100% basis.

36