Investor Presentation M A Y 2 0 1 8
F O R W A R D L O O K I N G S T A T E M E N T S A N D U S E O F N O N - G A A P F I N A N C I A L I N F O R M A T I O N This presentation includes statements concerning Blue Apron Holdings, Inc. and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other important factors that may cause Blue Apron’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements reflect Blue Apron’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to it and on assumptions it has made. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond Blue Apron’s control including, without limitation, Blue Apron’s anticipated growth strategies; its ability to achieve future revenue growth and manage future growth effectively; its expectations regarding competition and its ability to effectively compete; its ability to successfully build out and operate its fulfillment centers; its ability to expand its product offerings; its ability to cost-effectively attract new customers, retain existing customers and increase the number of customers it serves; seasonal trends in customer behavior; its expectations regarding, and the stability of, its supply chain; the size and growth of the markets for its product offerings and its ability to serve those markets; federal and state legal and regulatory developments; other anticipated trends and challenges in its business; and other risks and uncertainties discussed in Blue Apron’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the risks set forth under the caption “Risk Factors” in its most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and in other filings that Blue Apron may make with the SEC in the future. Blue Apron assumes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. This presentation also includes adjusted EBITDA, a non-GAAP financial measure, that is not prepared in accordance with, nor an alternative to, financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In addition, adjusted EBITDA is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly-titled measures presented by other companies. A reconciliation of these measures to the most directly comparable GAAP measure is included the Appendix to this presentation. Certain data in this presentation was obtained from various external sources, and neither Blue Apron nor its affiliates, advisors, or representatives make any representation as to the accuracy or completeness of that data or any commitment to update such data after the date of this presentation. Such data involve risks and uncertainties and are subject to change based on various factors.
Leader We help households in brand awareness in our category 1 nationwide experience the joy of culinary 550 Delivery to over 99% of the U.S. population experiences at home through three FDA-regulated original recipes and 50 wines fulfillment centers created in 2017 through our meal, wine and marketplace offerings $881M FY17 Net Revenue 1 Category defined as certain companies specified by Blue Apron that deliver fresh, pre-portioned ingredients and recipes operating in the United States. Unaided brand awareness based on respondent’s answer when asked, “Please list any companies you're familiar with that deliver fresh, pre-portioned ingredients and step-by-step recipes?” Aided brand awareness based on respondent’s answer when asked, “Which of the following brands have you heard of or used: AmazonFresh, Blue Apron, FreshDirect, Green Chef, HelloFresh, Home Chef, Part N Parsley, PeaPod, Sun Basket or Other?” Respondents were limited to persons satisfying target audience criteria that Blue Apron believes are indicative of consumers who are most likely to be interested in fresh, pre-portioned ingredients and recipes. 1 SOURCE: Brand Awareness Survey conducted by Lightspeed Research that was commissioned by Blue Apron in January 2018
Our Brand
W H O W E A R E BRAND Unlocking The BEST MOMENTS Of The Day POSITIONING OUR BRAND Connected to Trusted Culinary Discovery the Source Authority DNA ENTHUSIAST ASPIRER AVOIDER OUR CUSTOMERS 1 “Help me feel challenged and “Help me make cooking a part “Help remove the fulfill my passion for cooking” of my busy and hectic life” burden of cooking” 1 Based on customer segmentation research conducted by IDEO that was commissioned by Blue Apron, February 2017 3
U N I Q U E L Y P O S I T I O N E D Brand Awareness 1 Brand DNA 82% Connected to Trusted Culinary Discovery the Source Authority C H E F B A C K G R O U N D , B A A W A R D S & C O L L A B O R A T I O N S 37% BA Unaided Brand Awareness Aided Brand Awareness 1 Unaided brand awareness based on respondent’s answer when asked, “Please list any companies you're familiar with that deliver fresh, pre-portioned ingredients and step-by-step recipes?” Aided brand awareness based on respondent’s answer when asked, “Which of the following brands have you heard of or used: AmazonFresh, Blue Apron, FreshDirect, Green Chef, HelloFresh, Home Chef, Part N Parsley, PeaPod, Sun Basket or Other?” Respondents were limited to persons satisfying target audience criteria that 4 Blue Apron believes are indicative of consumers who are most likely to be interested in fresh, pre-portioned ingredients and recipes. SOURCE: Brand Awareness Survey conducted by Lightspeed Research that was commissioned by Blue Apron in January 2018
R E A C H I N G A N D E N G A G I N G C U S T O M E R S A C R O S S A B R O A D R A N G E O F D E M O G R A P H I C S Age Geography Children The largest portion of customers are Our customers come Almost 30% of customers are cooking in the 25-34 age range followed by 35-44 from all over the U.S. for children under 18 27% 73% 4% 30% 25% 16% 18% 9% 32% 28% 23% 17% 18-24 25-34 35-44 45-54 55-64 65+ South West Northeast Midwest Cooking for kids (under 18) Not cooking for kids Based on email survey of Blue Apron account holders conducted in Based on customers as of December 31, 2017. Based on email survey of Blue Apron account holders conducted in April 2018 with 1,074 respondents. April 2018 with 1,074 respondents. Average Annual Household Income Gender 79% Blue Apron account managers tend to of orders Majority of customers earning more than $50k a year be female, but we know that Blue Apron are 2-person is often shared between partners plans 11% 33% 56% 17% 82% $0-$49k $50k-$99k $100k+ Male Female 21% are family plans Based on email survey of Blue Apron account holders conducted in April 2018 with 1,074 respondents. Based on email survey of Blue Apron account holders conducted in April 2018 with 1,074 respondents. Based on the number of Orders in 2017 per plan type. 5 NOTE: Does not add up to 100% because 1% identify as non-binary
U N L O C K I N G N E W C H A N N E L S T O B E A C C E S S I B L E T O C U S T O M E R S W H E R E T H E Y W A N T T O M E E T U S They are also overwhelmed by it Even though many people How they interact with the product are excited about cooking... (service/delivery) makes a difference Deciding what to make and having the time to cook make it difficult What’s the hardest part People say they are somewhat/much about cooking dinner? more likely to use meal kits 71% 68% of people prefer to cook …if available without subscription of people would like to 70% 69% …if available in a grocery cook more store 43% 8% Deciding Cost what to make of people want to learn 68% 12% 52% …if groceries can be added more about cooking on to purchase Picky eaters 16% Time SOURCE: Customer segmentation research that was conducted by IDEO, as commissioned by Blue Apron in February 2017 6
Our Foundation
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