OFF/ON COMMERCE DAYJEROME GAVIN – COUNTRY MANAGER

16/10/2013

1. A successful business model

2. Why consumers are moving online?

3. Why restaurants are moving online?

4. Conclusions

AGENDA

OUR BUSINESSMODEL

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Order & pay online

Order transmitted to DR over mobile network

DR accepts order

(JUST EAT processes payment and holds DR cash prior to distribution)

Delivers toconsumer

Consumers

Delivery Restaurants (DRs)

1.

2.

3 .

4 .

Just connect terminal (JCT)

Website

► Substantially all orders go through JCT

► Provides significant operating efficiencies and ability to scale at minimal cost

► Can be utilised as communications tool to global DR network

A SIMPLE CONCEPT

THE PLATFORM

from offline……to online

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HOW DOES IT WORK?from offline…

…to online

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► Sign-up revenues – DRs pay to join the network

- Pricing varies on market maturity

► Additional B2B revenues

- Top-Placement – directory model (charge DRs to be listed at top of searches)

- Restaurant products – pizza boxes, bags, menu-cards, etc.

Restaurant drivenOrder driven

► Commission revenue on order value- Varies by country, average

c.10%+ of order value- This comes out of the

restaurant revenue - Consumers pay the same

price through JUST EAT

► Credit-card charges- c.56% of orders are paid for

via credit card

- JUST EAT charges small fee

- JUST EAT holds cash on behalf of restaurant

Minimal credit risk as JUST EAT holds restaurant

cash

+

A SIMPLE BUT GREAT REVENUE MODEL

from offline……to online

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Launch / acquisition timeline

UKLaunched in Mar-06

DenmarkLaunched in Aug-01

NetherlandsLaunched in Jul-07

Belgium (Flemish reg.)Launched in Apr-09

SpainLaunched in Nov-10

IndiaAcquired in Jan-11

Brazil Acquired in Sep-11

ItalyAcquired in May-11

NorwayLaunched in Dec-09

IrelandLaunched in Apr-08

Canada Launched in Aug-09

SwitzerlandAcquired in Apr-11

Current presence

2001 2002 2003 2004 2005 2006 2007 2008 20102009 2011

FranceAcquired in Dec-11

2012

DK UK NL IE CA NO IN CH FRBE ES IT BR

2013

FMB (UK) SD (ES)

13 COUNTRIES – MARKET LEADERIN 12 TERRITORIES

from offline……to online

750M€ food value. 85%+ growth in revenues. 40,000+ restaurants world wide. 26.5M orders. 8M registered members. Facebook fans: 1.7M 13 countries – 4 continents. 1,000 employees (800 FTE)

2012 IN ROUND NUMBERS

WHAT ABOUT SPAIN!?from offline…

…to online

►10M€+ food value YTD.►300%+ growth in revenues, demand and offer.►2000 restaurants accross the country.►70K+ orders / month►200,000 members►Facebook fans: 75,000►50+ employees►11,000€: spending of our top consumer.►Most addicted user orders every two days.►Definitely a new way of ordering food

SOME RECENT NUMBERSfrom offline…

…to online

JUST EAT SPAIN PERFORMANCE► Spain is currently the fastest-growing market in Just Eat history► Order performance at Month 33 is better than Canada and the UK

from offline……to online

WHY CONSUMERS ARE MOVING

ONLINE?

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► In 2011, MPG target analysis implied:

▸ 2.5M people use internet daily and order a takeaway at least once a month.

▸ Equal split boys and girls: 53% male and 47% female.

▸ Age group: 14 to 44 years old with peak around 20 to 24.▸ Status:

▸ students, full day active people, working late professionals.▸ Middle to Middle-Top class.▸ Divorced, married, or young single still living at parents´home.

▸ Madrid, Barcelona primary cities – in a second tier: Canaries Island, Balears, Valencia, Andalucia regions.

▸ City size: big cities over 500K people or medium like 10K – 200K people – helpful to make a clear cut in a region of interest like Valencia province for instance.

2.5M HUNGRY SURFERSfrom offline…

…to online

▸ Age: 20 to 34 years old.▸ Where do they live? Usually in big cities (over 500K) or

medium ones (10K to 200K)▸ Whether they work and where: student, first job, normal full

time job.▸ Marital status? Usually single. Most of them between 20 to 30

years old still living at parents house. Or engaged without children.

▸ What media they consume? High internet usage; Sport press; Bi-weekly magazines; Cinemas.

▸ What’s their lifestyle? Like going out but also enjoy being home spending time in front of their PC ; multi tasking; gamers and bargain hunters; have time.

CORE TARGET GROUP Nº1: Game boy generation & treasures hunters

from offline……to online

► Born in the tech era, they have an advanced internet usage: studies,

communication (emails, chat, SM), searches, entertainment (gaming,

downloads, videos).

► When they are buying online, they are looking for:

▸ Convenience.

▸ Good price (very price sensitive audience – bargain hunters).

▸ Large offer.

▸ Recommendations and reviews.

► Their trust in internet or ecommerce portals is above average but they

want guarantee on the product and the service (like money back).

OTHER LOCAL OBSERVATIONS *

*: Source: Salvetti

from offline……to online

▸ Age: 35 to 44 years old.▸ Where do they live? Usually in big cities (over 500K) or

medium ones (10K to 200K).▸ Whether they work and where: Normal full time job or

professional working late.▸ Marital status? Usually married with young children or

divorced.▸ What media they consume? All medias – lower internet

usage than previous group.▸ What’s their lifestyle? Busy people. Urban.

CORE TARGET GROUP Nº2“Because I deserve it”

from offline……to online

► They usually use Internet for professional purpose….but also for saving time,

online banking, and shopping.

► They see Internet as a perfect tool for the above mention tasks.

► When they are buying online, they are looking for:

▸ Convenience.

▸ Good service (delivery time, customer care).

▸ Good price.

▸ Large offer.

▸ Recommendations and reviews.

► They do not only buy online or themselves but also for their kids and partners (vs

previous group).

► Their trust in internet or ecommerce portals is above average.*: Source: Salvetti

OTHER LOCAL OBSERVATIONS *from offline…

…to online

► There is low culture of home takeaway in Spain, mainly due to:▸ The good weather. Outside culture. Eating is social.▸ Stores/shops stay open late (till 22h30).▸ Young people staying at parents 'home till their 30s´and enjoying their mum´s food.▸ Slow Internet penetration.▸ Online: Lack of offer and variety of cuisines and existing players assuming the delivery.

► Home delivery market was dominated by pizza chains.

However……

► Food habits are changing: 2.5M people use internet daily and order online takeaway once a

month.

► The young people are leading the way in Europe in SM, Videos, Games consumption.

► Fast food & Takeaway sector grew 3%/4% YOY for the last 2 years, despite the crisis.

► People wants more choice than just pizzas when they search for food.

► Ecommerce in Spain does not have a problem of demand but a problem of supply.

SPECIFITIES OF OUR MARKET from offline……to online

WHY RESTAURANTS ARE MOVING

ONLINE?

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MODERN AND PROFITABLE TOOLSfrom offline…

…to online

BENEFICIOS

ONLINE CUSTOMER SPEND MORE MONEY AND ALSO REPEAT MORE OFTEN!

from offline……to online

► No matter the industry today, all big “retailers” are selling on the “leading marketplaces” of their sector.▸ HP, IBM, Macy´s, Vodafone, Canon, Sony, Universal, Dell, Bose, Disney, on

EBAY o AMAZON.

MARKETPLACES ARE THE REVOLUTION

DOMINO´SNEW YORK PIZZAPIZZA GOGOPAPA JOHNSPIZZA GOT 4UITSUGOURMET ORIENTALPIZZA HUTSUSHI SHOPPLANET SUSHISmall and medium sizes chains………

from offline……to online

CONCLUSIONS

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JUST EAT is the best online and mobile takeaway solution

► Always have a menu

► No language barriers

► Store favourites and personal details

► Mobile ordering

Quick & Easy

► Pay cash on delivery or with credit/debit card

► Card details taken by JUST EAT not the DR Secure

► Postcode search

► Consumer reviews

► Filter by:

- Restaurant type

- Rating

Choice

► Easier for restaurants to promote special offers

► Consumers track spend when building an order

Value

- Cuisine

- Location

STRONG CONSUMER PROPOSITION from offline……to online

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Leverage JUST EAT brandHassle-free orders and

more of them Part of a wider network

► Clear print out

► Free up the phone line

► Minimal staff time / commitment

► Collective buying

► Conferences

► Sales visits, etc.

► Marketing promotions

More orders = the real compelling value proposition to restaurant

► Huge online presence- No.1 on “delivery” &

“takeaway” search

► Well recognised TV commercials (and other advertising)

► JUST EAT acts as stamp of credibility (branded DRs)

► Offer platform- Targeted and relevant offer

Restaurants

ATTRACTIVE RESTAURANT PROPOSITION

SHIFTING FROM OFFLINE TO ONLINE

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THANK YOU FOR YOUR TIME!

ANY QUESTIONS?