Hey everyone. Good morning. How you doing? I'm Will, founder and CEO of Deliveroo. I'm also here with David Hancock, our interim CFO. Thank you for joining for today's presentation. This is our Q4 trading update. We're gonna keep this very brief. We're gonna update on orders and GTV for Q4 and the full year, give a short comment on full year profitability. We'll move into the Q&A. As a reminder, though, we are presenting our full year results on March 16th. That's when you'll see the rest of the financials. A quick housekeeping note from me before we get into the numbers. In Q4, we ended our operations in Australia and the Netherlands. In order to provide a better understanding of the ongoing business, we'll focus in this presentation on figures for continuing operations which exclude Australia and the Netherlands. For completeness, we will sometimes refer to figures for all operations, and that means that we're including results from Australia and the Netherlands. With that, let's get started. Overall in 2022, we've made a huge amount of progress on profitability, but we've also managed to deliver decent growth in a difficult consumer environment. Here are a few takeaways. H2 2022 Adjusted EBITDA was approximately break even for all operations, including Australia and the Netherlands. H2 Adjusted EBITDA for continuing operations, i.e., not including Australia and the Netherlands, would be even better given we would have excluded the losses of Australia and the Netherlands. Margins improved from -3.2% in H2 2021 to -1.9% in H1 2022 to approximately break even in H2 2022 for all operations. That's a total move of 320 basis points in a year. We view this as a very significant achievement. Full year profitability, we're expecting Adjusted EBITDA to come in at -1.0% for all operations in 2022 versus the guidance of -1.2% to -1.5%. Turning to top line. For continuing operations, we delivered full year GTV growth of 7% in constant currency and 9% in reported currency. For all operations, full year GTV growth was 5% in constant currency and 7% in reported currency. On either basis, either continuing or for all operations, our GTV growth came within the 4%-8% constant currency guidance range that we provided in October. That growth came with share gains. We continue to take share in key markets such as the UK, France and Italy. In the fourth quarter, GTV was up 6% year-on-year to GBP 1.8 billion, which means we saw sequential growth in Q4 with GTV up 10% in constant currency compared to Q3. Today, we're not going to provide specific 2023 guidance, but we do expect to continue on a positive trajectory for Adjusted EBITDA in 2023, and we'll set out this formal 2023 guidance at our full year 2022 results on March 16th. Now let's turn to our marketplace. Throughout Q4, we continued to see decent engagement from each side of the marketplace. Across Q4, we had 7.4 million monthly active consumers transacting globally on the platform, and that's up from 7.0 million in Q3 '2022, which of course, was impacted by this typical summer seasonality we see and is broadly flat year-on-year against the 7.5 million in Q4 '2021. On the rider side, we continue to see robust application pipelines and retention rates. I think this underlines the popularity of the work we offer, and we're pleased that throughout Q4, satisfaction has remained strong, as it was around 83% across the global network, and we had about 150,000 riders working with us. On the merchant side, we continue to add great restaurant selection. We now have around 158,000 partner sites live on the platform globally at the end of December. Compare that to about 150,000 at the end of Q3 and around 130,000 a year ago. Sorry, at the end of December 2021. We've further expanded our grocery selection with 18,000 partner sites. This is live at the end of December. Compare that to the end of Q3, we're around 16,000, and at the end of 2021, we're at around 11,000. I'd say in addition to that, we have continued with a measured rollout of Hop and Hop as a Service sites. If you look on the right hand of the slide, you can see how that translates into some top-line financial performance measures in 2022. On a full year basis, orders of 299 million were up 5% year-on-year with GTV per order up 2%. That's around a 7% GTV growth in constant currency. I do wanna thank our team for delivering this performance in the context of the very challenging macro environment and also against a comparison base that included COVID tailwinds. All right. Let's turn to some of the quarterly numbers on the next few slides. Thanks. Before we get into the detail of the quarter, let us start with a slightly longer term perspective here. If we look at orders and we look at each Q4 since 2019, you see that whilst our year-on-year growth in Q4 2022 was slightly negative at 2%, negative 2%, this is against a backdrop of a very strong 2021. Compare that to Q4 2019. This is pre-pandemic times. Orders are up 138% this quarter, so Q4 2022 on Q4 2019. If you then compare that to Q4 2020, which was a very restrictive COVID impacted quarter, orders are up 34%. If you move on the right side of the page, you'll see GTV. That's a similar picture. We've got Q4 2022 GTV actually up modestly year-on-year. That's up 6% for continuing operations. If we compare back against Q4 2019, GTV is up 170%. What we've seen is that growth's moderated this year. Now that's obviously, again, it's a backdrop of all the consumer headwinds we've talked about, the cost of living pressures, but we have grown the business very significantly over the last three years. I do believe this demonstrates the structural growth in our business. Now, growth may be challenging in the coming quarters, given the macro headwinds. We expect them to, you know, persist for some time. Penetration is low even now, and I still think we are early in the development of our industry. All right, I'm on slide six now. What we're looking at now is Q4 in the context of 2022, rather than the historical perspective on the last slide. In Q4, we saw that orders were up sequentially, increase of 7%, 10% for GTV as we rebounded from the summer seasonality, which we typically see in Q3. From a year-on-year perspective, you can see it's a -2% order decline, but a +6% GTV growth year-on-year in Q4. That obviously implies strong GTV per order year-on-year, which we will be discussing on the next slide. At Q3, we took you through three phases we had seen for sequential GTV per order since the beginning of 2020. Here's a quick reminder of that. Beginning of COVID, we saw initially basket sizes increased to higher party sizes as we had a bunch of lockdowns in early 2020. These lockdowns were lifted in most markets in Q2 and Q3 2021. At that point, we saw a reversion in these basket sizes to pre-pandemic levels, and again, that's really due to party sizes reducing. If you look on the chart here, since the third quarter of 2021, GTV per order has increased quarter on quarter, and that's been driven primarily by item inflation, as well as our work on consumer fee optimization. This trend continued in Q4 2022. We saw GTV per order up both sequentially and year-on-year, meaning that year-on-year GTV growth outpaces order growth. With GTV per order reported in pounds, the last few quarters has also seen a currency tailwind, and you can see that on the right-hand side here. GBP 2.40 increase in GTV per order in Q4 versus a year ago. About GBP 0.70 of that comes from currency effects. The remaining GBP 1.70 of the increase is driven by item level price inflation, and to a lesser extent by the consumer fee optimization we talked about. All right, now let's move on to the geos. Let's start with the UKI. Q4 represented, I think, a decent performance with quarterly GTV over GBP 1 billion for the first time. GTV year-on-year growth was 9%. We had orders broadly flat. We had GTV per order growing by 9%. As ever, we continued to improve the consumer value prop. Throughout Q4, we meaningfully improved our selection for consumers across both grocery and restaurants. We added 2,000 more restaurant partner sites in Q4. We added Caffè Nero to the platform. On the grocery side, we increased our partner sites by around 1,000. Added Asda. We also added a dark store operator, Zapp, to our platform. Now moving into international, you know, like the UKI, GTV grew both sequentially and year-on-year, GBP 765 million in Q4. That's the highest ever absolute quarterly GTV. That is up 2% in constant currency compared to a year ago. Also made significant CVP improvements. We added 6,000 restaurants, added 1,000 grocer partner sites as well. At the beginning of Q4, we did launch Qatar, as we mentioned. Initial progress has been really good across all three sides of the marketplace. Consumer satisfaction has been very strong. We've got 1,000 restaurant partners live. We've onboarded hundreds of riders. In other markets, we used, you know, I think I talked about this Marseille playbook before. We executed a number of what we call city sprints across France, Italy, and Belgium, delivering strong local market share gains by improving that CVP. Across 2022, we've made significant improvements to our CVP. Now, that's contributed to market share gains in key markets such as the UK, France, and Italy. Importantly, this has been achieved whilst significantly improving profitability, which I outlined earlier, but then David is gonna talk more in detail on the next slide. Over to you, David. Thanks, Will. As Will mentioned, we had a really pleasing performance in terms of profitability improvement in 2022. When we look specifically at profitability in the second half, we now expect Adjusted EBITDA to be approximately break even for all operations. It will be slightly better when we also exclude Australia and the Netherlands, as together these businesses were loss-making. That level of approximately break even on Adjusted EBITDA represents a very significant improvement in the margin over the last 12 months from 3.2% negative in H2 2021 to 1.9% negative in H1 2022 then to around 0 in H2 of 2022. During the last year, the strongest drivers of improvement have been in gross profit margin through a combination of optimization of consumer fees, driving more efficiencies in the logistics network, and the first contributions from our advertising business. In H2, we also started to see benefits on the marketing line as we were flagged at the half year results that we would. Looking into 2023, we expect to see a continued positive trajectory on Adjusted EBITDA. This year, we'll start to also see more progress below the gross profit line with a high level of focus on overheads and ensuring we have a lean cost base. Important to say, we consider reaching Adjusted EBITDA breakeven to be an important milestone, but we're also very focused on driving beyond that to true bottom-line profitability and positive free cash flow generation. Let's now also take a look at our performance versus our guidance. Starting with GTV growth, our most recent guidance for the year was 4%-8% GTV growth year-on-year in constant currency. As previously mentioned, for continuing operations, we delivered full year GTV growth of 7% in constant currency. If we ex-include all operations, then GTV growth in constant currency was 5%. On either basis, the GTV growth in 2022 fell within that guidance range of 4%-8%. Turning to profitability, we'll announce our 2022 results on the 16th of March. We expect then to report a 2022 full year Adjusted EBITDA margin of approximately -1% for all operations, so including Australia and the Netherlands. This is better than the guidance of -1.2% to -1.5% that we'd given in October. This guidance was provided on that same basis of including Australia and the Netherlands. The outperformance versus our guidance compared to what we said in October was driven by a combination of gross profit margin expansion and of cost control. As I said, we expect that to be an important theme as we head into 2023. With that, Will, I'll hand back for you to wrap up. I'm gonna conclude really, really briefly here. Obviously, we saw a very difficult consumer backdrop. We continue to see that. The business performed decently in 2022. We made very, very significant progress on profitability. We delivered growth at the same time. I'm very proud of the team for doing this. We'll be announcing full year results on the 16th of March. There, we'll talk more about profitability, the rest of the financials, but also about our expectations for 2023 in more detail. I wanna thank you all for listening. Looking forward to the Q&A. Operator, over to you. Ladies and gentlemen, if you wish to ask a question, please press star followed by 1 on your telephone keypad. If you change your mind and wish to remove your question, please press star followed by two. When preparing to ask your question, please ensure that your phone is unmuted locally. To confirm, that's star followed by one to ask a question. In the interest of time, please limit yourself to a maximum of two questions. Our first question is from the line of Andrew Ross from Barclays. Please go ahead. Great. Good morning to both of you. I've got two if that's okay. The first one is just really to think about how you guys are seeing the balance of growth and profitability in 2023. I appreciate you're not gonna guide specifically, but perhaps if you could just help us with kind of the puts and takes about how you balance those two things given to the very good progress on profits in the second half, and also you being very well capitalized. The second question is on rider regulation, and just curious on your take on the latest news flow from December around the Platform Workers Directive. Appreciate there's a long way to go here, but would love to know kind of your perspective on where we're at right now. Thank you. Okay. Morning, Andrew. I'll take the first one, and then Will will take the regulation one. I think you're right. It is a balance between driving growth and profitability. We're really pleased with the progress that we made in 2022 on the profitability side. We talked in March of 2022 when we set out the 2026 ambition of a 4%+ Adjusted EBITDA margin of the levers we have to get there. We talked about levers above gross profit, so things like consumer fees, the advertising business, and efficiencies in the logistics network, driving gross margin, and then below gross profit around marketing efficiencies and also leveraging the overheads. I think in terms of the levers that drove more of the progress in 2022, they were predominantly around the Gross Margin, things like the consumer fee optimization, starting to see a bit of a benefit from advertising revenues and definitely seeing some benefits on the logistics efficiency side. I think as we look to 2023, you will see some of that continue, for example, on the advertising revenue side. I think on consumer fees, we are conscious of the cost of living pressures on consumers, so I think that's something we will very much be mindful of through this year. I think the levers below Gross Profit, particularly around overhead efficiency, is something that we think there is still a lot of opportunity for us on. We do think we can continue to deliver on margin progress, even while continuing to invest in the business, continuing to invest in marketing. On the growth side, as Will talk to the slide on the historical perspective, we do think there is structural growth in this business. We think we're early in the maturity of the industry. There are clearly some headwinds to top line given the external environment, we're really confident that we can continue as an industry and as a business over the medium term, to grow. Yes, it will be a bit harder in 2023 than over the last few years, we're confident we have growth drivers to continue to deliver both growth and profitability. Yeah, maybe I'll just add a few things, David, as well. Hey, Andrew. I think obviously we're monitoring the macro environment very closely. You know, we, we don't know where that's gonna end up. We don't expect things to improve materially in the short term, but we will always be investing to improve the consumer value proposition. You know, more merchants, you know, adding more grocery opportunities, selectively investing in more hub sites, you know, that sort of thing. To the extent that the consumer environment improves, then we'll certainly look at opportunities to step up, you know, marketing, you know, marketing line. Overall, what we don't wanna do is spend a bunch of money in a really weak consumer environment where we don't think the returns will be great. I, and I think to David's point on the profitability side, I think we made a bunch of progress on the consumer fee side in 2022. There's gonna be some more progress there. Ads is gonna become a much bigger part of our business, and it's made really great progress in 2022. We expect, you know, that to continue scaling, and as we said, network efficiencies, there's still a lot to go there. If we look below the line, yes, we were definitely more cautious on marketing spend given the consumer environment. I think there is more we can do on overheads as well. That's kind of how I'd characterize it. Just on the regulatory side, I think you're referring to the European directive. At least the way I sort of think about it is, let us take a step back from the headlines and let me just kind of give a brief overview how I think about it, because it is complicated. You've these three EU bodies. You have the Commission, you've got the Parliament, you have the Council. The Commission published a draft directive in December 2021, since then, the Parliament and the Council have been debating and drafting their own positions. Once the Parliament and the Council agree their own positions, the three bodies will move to discuss, you know, a final directive between the three. What I would say the most recent headlines have been from the European Parliament, and that's specifically from the Employment Committee within the Parliament. There'll be a vote on this in the full Parliament soon. Let's see how much support, you know, that gets. In terms of what the Employment Committee agrees, it's not clear to us exactly, you know, what that is. We're still analyzing closely 'cause it can be read in a number of different ways. I think what's important for us is that even in the Parliament text, the rebuttal procedure still involves national criteria. That's where we think we're in a very strong position. If I look at the Council side, the Council's position is undefined. From, you know, what we hear on the ground, it's quite a ways away from Parliament's position. Our expectation is that they're not gonna agree with Parliament's text, and, you know, we're confident that the Council will provide a text that is broadly in line with how we operate. So I think this is one stage in the process. Obviously, you know, it's an ongoing long process, which I think is frustrating for everyone, but we do remain quite far from a final text. The other thing I'd say is the Swedish Presidency has begun in H1 2023. They are actually opposed to the Directive outright. So we think they'll take a measured approach, and we're gonna continue our engagement with member states and their representatives to achieve what we think is the best outcome for our business and riders. It's extremely helpful. Thank you. The next question is from the line of Christopher Johnen from HSBC. Please go ahead. Yes. Morning, everyone, and thanks for taking the time. Two questions from me as well. First, sorry, getting back to the guidance. When we think about the market exits that you had in Q4, I think... I don't know. You tell me, but what do you think is a reasonable number to assume in terms of the profitability improvement? Is it like GBP 20 million, GBP 25 million, GBP 30-ish million that should be added on top? Shouldn't that imply basically that 2023 Adjusted EBITDA could be profitable? I'll take the first one then, Chris, and then come back with your next question. On the 2023 profitability guidance. In the statement we said that we expected to continue to improve profitability in 2023. Obviously, we said we were approximately break even in H2 of 2022. That was including the losses in Australia and Netherlands. When we exited Australia, we said that that had been about a 30 basis point drag on Adjusted EBITDA for the group in the first half. That kind of equates to an annual rate of losses of around GBP 20 million. If you say we had kind of GBP 10 million in the first half, we obviously didn't have a full half, if there is such a thing as a full half, a full half of Australia in H2. The losses would be a bit less in H2. On a kind of annualized basis, something around the GBP 20 million mark. Netherlands was much, much less than that. You do have a bit of a tailwind from that in 2023. The guidance that we gave, saying improving in 2023 compared to H2 of 2022, so better than that breakeven level. You're right to draw that conclusion. I think when we get to March, when we've published the full, the full results for 2022, we'll be able to get into a bit more detail around the kind of individual levers of profitability. Okay, cool. That's clear. Second question, just on France and the news that we had in Q4. Maybe there is a bit of a comment you can give on the ongoing discussion with URSSAF and the sort of mandate ad hoc thing or however it's pronounced, that would be helpful. Thanks. Sure. Hey, Chris, I can take that. The URSSAF is the body in France that they actually are in charge of collecting social security payments. They're investigating how Deliveroo France engaged independent riders. We've been having constructive discussions with the URSSAF. We've been providing evidence about how we work. No findings have been made yet including in relation to any, you know, potential amounts or anything like that. There's no formal timeline for a conclusion to be reached. We're just engaging constructively with them. I think it's also very important to remember that there's been six civil court judgments that have found Deliveroo France that, you know, that we actually offer self-employment to riders, and also that the government policy itself is to support the platform economy and the type of work we offer. We're participating in the social dialogue with the government. We're working with trade unions as part of government-led negotiations in order to find new ways to support our self-employed riders. You know, this investigation is ongoing, and, you know, if there's an update and if it's appropriate, we'll update all of you. Got it. Understood. Thanks. The next question is from the line of William Wood from Bernstein. Please go ahead. Hi, good morning. Just a quick two questions. one, can you just give some more color on the interactions that you're seeing in consumer behavior through the quarter, how that's exiting into January as well? The second one, you obviously entered into Qatar last year. How has that gone, and should we see any more market entries this year? Thanks. I'll kick off here. Hey, Will, and David, if you have, you know, further comments on the consumer. I think what I would say is that if you look over the course of 2022, we have seen slightly lower retention of existing customers, in 2022. You know, towards the sort of tail end or like the last quarter of 2022, we've seen positive signs that that decline in engagement has stabilized. I would say this, when we split up our consumers by affluence, it's definitely the less affluent customers that are, for obvious reasons, you know, less engaged with the platform than they were previously, right? There's a pretty stark kind of, difference between, you know, some of the less affluent customers and some of the, mid-affluent and, and the, and the greater affluent customers. I think, you know, on frequency, we've seen, you know, cohorts, increase historically, you know, month by month. During the pandemic, we said that accelerated ahead of historical trend lines. Then in the early part of 2022, we saw this reversal a bit of this super normal boost. You know, that, there is a sign that is, the reversal has really bottomed out at this point. And it is stable. Also I guess importantly, it's well above, pre-COVID levels. I guess overall, you know, when we see all of this, you know, there's nothing that we see that we're like, oh, 2023, early 20 23 is going to be vastly different than 2022. You know, like everyone else, we're sort of wait and see. I don't know, David, if you wanna add anything. I think the only thing I'd add is kind of trying to get a read end of the year, beginning of the year is always tricky, given kind of timings of holidays and those sorts of things on a... If you're trying to get a steer of kind of how has January started, it's a little bit tricky to be definitive on kind of the early part of January. Overall, as Will said, I think we took a pretty cautious view on 2022, and we don't see anything immediately in the data right now to change that view. Just on the Qatar question, it's gone really well. I mean, you know, I've been really focused on, sort of customer satisfaction, restaurant satisfaction, rider satisfaction, that's all trended great. I think it's a little early. You know, we've been live there for a couple months now, so it's a little early for me to sort of comment on just the overall market. It's been positively received for sure. I think in terms of, you know, new markets, I think the way we sort of think about it is, you know, that was an example where our existing team in the UAE, which built up a really great business, had all of these relationships with merchants and had a lay of the land in some of these other countries. We said that was a good idea. If we see more of those types of opportunities, we'll definitely consider them. Got you. Thank you. Next question is from Giles Thorne from Jefferies. Please go ahead. Thank you. My first question is back on the consumer. There's obviously been a lot of fears out there that the sector won't be able to increase monetization of the consumer during a cost of living crisis, or certainly not without imploding GTV. With your trading update today, and to a lesser extent, Just Eat yesterday, evidence is that those fears are misplaced. It'd be interesting to hear your perspective, Will, on what exactly it is about the utility of your platform that's leading to that lower than feared, pricing sensitivity. Then secondly, on the question, on the subject of advertising, the platform's been live for six months. We've seen the Sky Glass partnership come out. You've spoken favorably of momentum. It'd just be interesting to hear if there's been any changes in where you think that business could go over the medium term, bearing in mind the previous guidance for about one to two percentage points of GTV medium term. Thanks. Okay, cool. On the consumer side, I just think this is a, you know, essential service at the end of the day. Once people start using this, you know, it is very sticky service. I think one thing that's also helped a bit is grocery. Grocery, as we introduced it, you know, before COVID, really has been habitual for people. I think what we're seeing is that instead of maybe doing a weekly shop, people are splitting up their, you know, previous weekly shop into smaller baskets in order to get the food faster, in order to maybe become more environmentally sound, in order not to waste food. That is a trend, you know, we expect to continue. I also just think a lot of... You know, we've been around 10 years now, right? Our tenth-year anniversary is February 6th. Can't believe I've been doing it this long. You know, if you think about the consumers we acquired 10 years ago, you know, it's become a part of their lives. They're bigger earners now. So part of that is just sort of, you know, people sort of, this becoming part of their lives. I will say this, though, you know, yes, we, we're proud of the fact we delivered positive growth, but, you know, the consumer environment is weak, right? And certainly for the less affluent consumers out there, it has been more challenging. I do think when the cost of living crisis is over, you know, we definitely view that as a positive thing when that happens. David, do you want to add anything on the consumer? No. I think we should just add that when we think about consumer fees, we're always asking what is the extra value we're bringing here and making sure that we're continuing to improve the value proposition. Also, Also, are we optimizing our own pricing? It's not just about raising pricing across the board. Yeah. Are we charging appropriately for the longer delivery distances and making sure that we reflect that appropriately. It is sort of micro changes rather than changes. You know, John, I was just thinking, the other thing I would say is, like, if you take a longer-term view, and you think about our business. I don't know if you were a customer five years ago or 10 years ago, you know, what we just offer today is, I think, night and day different, right? You've got, you know, you can get your boots, you can get, you know, groceries, you can get, you know, all different types of restaurants. You can get some non-food items. You know, you can do it in an app that is just far better than it used to be. There's... I think part of the stickiness is just, it's not like we just sit around and the frequency goes up and customers are like, "Great." No, we always have to sit and improve that value proposition, right? That's what we're really, really focused on on a hyperlocal basis. I think on advertising, I would say that 2022 was a very good year for advertising. We said it was not a meaningful contributor in 2022, but I think in 2023 it will start becoming that. I don't. You know, from what we see, I don't believe I actually gave guidance on this, so maybe I'm a bit. I'll have to look at my notes again. We do think it's a significant part of our, of that path to the 4% plus that we talked about. The progress has been really good, and I expect it to be a decent contributor in 2023. Great. Just maybe a brief follow-up just on that point around, picking up on your comments, sort of, around grocery. Given the impact it's had, and given some of the evidence out there that you're outperforming the likes of Getir and Gorillas and indeed just the general retrenchment of Getir and Gorillas, and given your capitalization too, You know, what can we expect from Hop in 2023? Well, I think the thing about Hop was, you know, as we talked about. Of course, this is just for people that don't know, this is our dark store business where we enter into a wholesale relationship with our partners and we offer delivery from a 2,000 sq ft type of mini warehouse. The critical thing for me was never, "Is this a good customer experience?" It was always, "How do I make money with this product 'cause it's not easy?" I think what we've found is that in areas of decent population density, in areas where we have decent market share, we can actually get to four-wall profitability within the site, right? We've been doing that in London. We've been doing that in places like Paris. We will be selectively investing in this product because we've proven that it can generate that 4-wall profitability. Obviously that's, you know, before things like ads. There's still a long way to go, I think, for us to improve that operational efficiency. Like, it is something that I think is a critical part of the CVP in those areas. As you say, some of the other pure play dark store players, they have been pulling back. I think that, you know, does benefit us. Also, I have stronger conviction now that this dark store model belongs on a platform. We've got, you know, the lower cost of delivery. We already have the existing customers. As we've proven with grocery even before dark stores, grocery is about 100% incremental to our business. Overall, we will be investing selectively in new sites. It has gone well. Thank you very much. The next question is from the line of Georgios Pilakoutas from Numis. Please go ahead. Thanks. Morning, team. First one, international. We, we've got kind of slightly new breakdown of the numbers today, excluding Netherlands and Australia for the past year. I guess I was just hoping you could give us a bit more color on the organic trends for that region, kind of 2% growth in the fourth quarter. What is weighing on that, perhaps as kind of elements of normalization lockdowns through the year. If you could talk a little bit on some of the markets and some of the trends there. The second one is probably more for David around if you just talk to us a little bit around the bridge from EBITDA to cash burn, particularly for the year ahead and thoughts around kind of generating some interest income on the cash position of the group. Yeah. David, do you wanna just take the second one first, and I'll just get back to the first one? In terms of the 2022 Adjusted EBITDA to free cash flow bridge, if you take the guidance or the outcome of -1% Adjusted EBITDAs as a percentage of GTV. Apply that to GBP 7 billion of GTV, you've got sort of negative GBP 70 million of Adjusted EBITDA. The big bits below that, CapEx and capitalized development. Capitalized development being the capitalized development costs, the engineers building assets that we capitalize, and then also the CapEx is predominantly Editions sites. Those two together, CapEx and capitalized development, were, I think GBP 43 million in the first half. Sort of doubling that for the full year gets you to around GBP 80 million of CapEx and capitalized development. Leases are around GBP 15 million. You've got in 2022, a small amount of interest income and some tax paid. Broadly speaking, you put those pieces together, it's ballpark GBP 100 million of cash out on those items. In 2022, there are some more, I would say, irregular items. Remember in the first half we talked about an employee tax related outflow of around GBP 40 million. We had, I think, around GBP 10 million of exceptionals in the first half. You won't see a repeat of that employee tax element in the second half. Exceptionals will be a bit higher in the second half related to the Australia and Netherlands exits. Maybe somewhere around double the first half level. If you've got that, kind of 40 and call it, sort of 30-ish, you've around GBP 70 million of more irregular items. If you kind of add those up, GBP 70 of negative GBP 70 of Adjusted EBITDA, about GBP 100 in the first bucket of more regular items and GBP 70 in the second bucket, you're getting to sort of GBP 230-GBP 240-ish of outflow. Then on top of that we have the share buyback, which I think at the full year we've done about GBP 65 million-GBP 66 million. We actually completed that this week, but the balance of the GBP 75 million was in this year. All in, that's around, I think, GBP 300 million-ish of cash out in 2022. If I look at 2023, the obviously we haven't guided to an Adjusted EBITDA number at this stage. If I look at the CapEx and capitalized development, I would expect that to be a bit lower in 2023 than it was in 2022. CapEx, as I said, that's predominantly Editions sites. I think we'll see a lower pace of rollouts in 2023 given some of the pressures that restaurants are under. Interest, which you specifically asked about, I think that will clearly be higher interest income in 2023 than it was in 2022. I think with that CapEx and the interest, I think you'll see in those regular items that gap between EBITDA and free cash flow a bit lower in 2023 than it was in 2022. Obviously exceptional's hard to predict at this stage. But hopefully that kind of gets you to a broad bridge. Obviously in March, we can talk through it in more detail. Okay. I'll just follow up on the international segment. I think it's obviously a broad set of markets. If you take just Australia and the Netherlands, obviously, you know, those would be pretty negative given we announced we would leave the market and also, you know, we don't have half the quarter in the, in the numerator either. That's pretty obvious. I think where we have seen a bit of sort of market weakness overall is France. I think we flagged that before. This was a market issue. Our market share trends I think are actually moving in the right direction. Overall, you know, in 2022, France has been a bit weaker of a market than we would have liked. It's not super clear to us if that's sort of just the macro environment or if it's a COVID, you know, unwind, 'cause obviously markets like the UK have held up, you know, for us very strongly. If I look at pockets of strength, I would say we've seen very strong trends in Italy, we've seen very strong trends in Hong Kong, and we've seen strong trends in the UAE. It is, it is, a bit of a mixed bag, but that's how I would characterize it. Okay, thanks. I mean, maybe on, you spoke earlier about seeing kind of normalization in customer retention and order frequency. Like is that something you can pull out in France and build a bit more of a story and see some kind of leveling off and back to growth, or is it still a bit too early to say? I think it's a bit early to say. You know, it's something, you know, we're spending a lot of time, you know, monitoring, but it's definitely a market-wide issue. You know, we're, you know, we're doing what we can to try to better understand it. Sorry, one last one is just following up on that. Anything on the supply side? Like in France, are you still finding restaurants and grocers engaging, and so the CVP is still improving? Yeah. We don't see any issues on the supply side. No. Okay. That hasn't been an issue. Yeah. Great. Thank you. Thanks. The next question is from the line of Andrew Gwynn from BNP Paribas Exane. Please go ahead. Yeah. Good morning, team, and happy New Year. Two quick questions. Firstly, on the consumer fee journey, I think at IPO it was loosely EUR 2 per head. I'm just wondering where it is now. Sounds like you want to go a bit more cautiously in 2023. Some help there would be useful. Secondly, your competitor yesterday spoke a lot about wage inflation. Is that going to be a factor, do you think, for 2023 for Deliveroo? Thank you very much. Thanks, Andrew. I think on the consumer fee side, there's a few things going on. One is obviously we've had basket-level inflation. Now our consumer level, the fee side hasn't matched that like for like. I think it's a bit less than what we've seen on the item level inflation. You know, our research would indicate that customers do, in many cases, think about consumer fees as a percentage of the basket. I wouldn't say that's changed dramatically despite obviously our consumer fees going up. On the topic of wage inflation, I think obviously for our employees, you know, Yes, I mean, the people are probably expecting, you know, higher wages than they were before, like in any company. I think what's been, quite interesting though, is we've been able to drive now then on the contractor side, on the rider side, we've been able to drive a lot of network efficiencies, to, you know, to make sure, you know, that line's in a good spot. I would expect us to, you know, try to achieve efficiencies, you know, in the coming year as well. David, anything you wanna add on wages? No. I think just to reiterate that point, that on the rider side, I think we'll continue to drive efficiencies to mitigate wage inflation. On the internal employee side, again, we want to continue to focus on how we drive more efficiency. Also, frankly, to improve operationally the business, things like speed of decision making and ways of working. We're continually trying to drive efficiencies through the business. We do think we will be able to take actions to mitigate some of the wage increase. Yeah. This is a big area of focus for David and myself. Yep. Okay. That's very clear. Just sorry, on the menu price inflation, are you able to put a loose figure? I know it's gonna be very variable by market, but maybe in the UK, where is menu price inflation? Thank you. Well, we know that overall food and drink inflation, I think in the last month was on 18%. I think that was the government statistics, right? I think that came out maybe today, I'm not sure, or yesterday. I would say, you know, you are seeing that flow through on the restaurant menu side and certainly on some of the grocery side. Now, whether, you know, a restaurant decides to kind of go above that or below that, it's a little hard for us to say. Yes, we're definitely seeing that level of inflation. I don't know, David, do you wanna add anything? No. I think on the, on the slide where we showed GTV per order year-over-year, I think you're seeing some consumer behavior to mitigate the overall increase in item level inflation. The constant currency growth in GTV per order, the item level inflation is higher than that, and then you're seeing people, as I said, moderate. They don't buy the Coke. They don't... Yeah. Yeah. Yeah. That is less than obviously overall food inflation. Yeah. Yeah, that's good. All right. Thank you very much. Thanks. The next question is from the line of Joseph Barnet-Lamb from Credit Suisse. Please go ahead. Yes, thank you for taking the question. Just a final couple from me. Firstly, just how important is GTV growth in delivering Adjusted EBITDA improvement in FY 23? You gave some commentary around sort of cost lines below gross profit. I'm thinking perhaps not massively, but that's question one. Question two, following on from Charles's questions on Hop. Are you able to give us some numbers around some of this? How many stores do you have? How many do you intend to launch? And what's the drag on group level profitability from Hop at the moment? Thank you very much, Jim. David, do you wanna take the first one? I think as I said earlier, we do think we have a lot of levers to drive the profitability even in a weaker top line environment. I think not just the below gross profit levers, which as Will said, we are giving a lot of focus to, but also above gross profit, driving things like the advertising revenue, driving efficiencies in the logistics network. There are plenty of levers still. There is still plenty of opportunity to drive profitability forward. Obviously, a stronger top line environment helps in things like leveraging your fixed costs, but we do think that we have a lot of those levers in our control. The magnitude of the progress you saw in 2022, so from that -3.2% margin in the second half of 2021 to approximately break even in the second half of 2022, that was delivered against the top line environment that wasn't particularly supportive. We do think that we have more to go on that front. I think on Hop, the thing I'd say is I don't think we've actually, you know, kind of split anything out yet. I would say, at a high level, though, Hop is a bit different than, say, our Editions business, right? Cause we're manning the warehouses, you know, we're taking in stock. Really the way it affects the P&L is it's really an operating expense that, you know, you need to sort of. Once you get to a level of break even, then you start accruing positively. It's not a really big CapEx investment. You're talking about, you know, like a small warehouse with a few shelves. I don't know, David, do you wanna add anything on Hop? No, I think that's right. We haven't explicitly called it out. It is in the... Of course, in the early stages of any site, it is a bit of a drag on profitability. That's something which I think is manageable in the context of the overall P&L. Thank you, guys. Just a follow-up if I can, David. Just to be clear, in a flat GTV environment, you would still expect to improve profitability sequentially? Yes. I think the... Yes, exactly. We think we have the levers to continue to drive profitability forwards, even in a flat GTV environment. Much, guys. The last question is from the line of Luke Holbrook from Morgan Stanley. Please go ahead. Yeah. Good morning, everyone. Just a couple from me. First off, how many regions are now profitable after the central costs are allocated? I think in the past you talked about the UAE and the U.K. Just secondly, are you noting any reduced effectiveness of marketing spend or marketing costs going up, particularly in the U.K? I think one of your competitors talked about that yesterday as well. Thank you. On the first question, we haven't sort of given a country by country assessment of where profitability is. I think we used UAE as an example in the I think it was even the full year of 2021 results. I think we're not gonna get into country by country profitability. I would say that the improvement that we've made in 2022 is not sort of confined to one particular country, not just confined to the U.K. It is we've made good progress, I'd say, across the portfolio. I think on the marketing side, Luke, I would say that it's, There's a lot of things going on very quickly. What we are seeing is that unit costs are down on marketing, just, you know, there's less people advertising, et cetera, et cetera. At the same time, our unit economics have improved. As we also talked about, retention, for existing customers has been a little weaker in 2022 than in the past with frequency, you know, kind of stabilizing now. When you put all that together, I'm not sure that I've got a sort of super constructive update for you. It's something that we're monitoring really closely, but you've got all of these different variables moving pretty quickly. Okay. Sounds good. Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for joining. You may now disconnect. Goodbye. Thanks. Bye.