DELHIVERY

Date: February 10, 2023 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 India India Scrip Code: 543529 Symbol: DELHIVERY Sub: Presentation of Earnings Conference Call of Delhivery Limited ("the Company") Dear Sir/ Madam, In furtherance to our earlier communication dated February 07, 2023 and pursuant to the provisions of the Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, (“LODR”), we hereby attach a copy of presentation of earning conference call of the Company with investors/ analysts scheduled to be held on Saturday, February 11, 2023 at 04:00 P.M. (IST) on Unaudited Financial Results of the Company for the quarter ended December 31, 2022. The aforesaid disclosure will also be hosted on the Company's website at https://www.delhivery.com/investor-relations/ as per the provisions of the LODR. You are requested to take the above on records. Thanking you, Yours faithfully, For Delhivery Limited SUNIL Digitally signed by SUNIL KUMAR KUMAR BANSAL BANSAL Date: 2023.02.10 22:43:52 +05'30' Sunil Kumar Bansal Company Secretary & Compliance Officer Membership No: F4810 Place: Gurugram Encl: As above Safe harbour and disclaimer This PresentationispreparedbyDelhiveryLimited (“Company”) andis forinformationpurposesonlywithout regards tospecificobjectives,financialsituations orneeds ofanyparticularpersonand nothinginitshallbe construed as an invitation, offer, solicitation, recommendation or advertisement in respect of the purchase or sale of any securities of the Company or any affiliates in any jurisdiction or as an inducement to enter into investment activityand no part of it shall form thebasisof or be relied uponin connectionwith anycontract orcommitment or investment decision whatsoever. This Presentation does not take intoaccount, nordoesit provideanytax, legal orinvestment adviceoropinion regardingthespecificinvestmentobjectivesorfinancialsituationof anyperson. ThisPresentation andits contents areconfidentialandproprietarytothe Company and/oritsaffiliatesandnopartofitoritssubjectmatterbeused,reproduced,copied,distributed,shared,ordisseminated,directlyorindirectly,toanyotherpersonorpublishedinwholeorinpartforanypurpose,inany mannerwhatsoever. Certainstatementsinthiscommunicationmaybe‘forwardlookingstatements’withinthemeaningofapplicablelawsandregulations.Theseforward-lookingstatementsinvolveanumberofrisks,uncertaintiesandother factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure,significantchangesinpoliticalandeconomicenvironmentinIndiaandoverseas,taxlaws,labourlaws,importduties,litigationandlabourrelationsetc. InvestmentinequityandequityrelatedsecuritiesinvolveadegreeofriskandinvestorsshouldnotinvestanyfundsinthisCompanywithoutnecessarydiligenceandrelyingontheirownexaminationofDelhiveryLimited alongwiththeequityinvestmentriskwhichdoesn'tguaranteecapitalprotection. 2 Continued sequential improvement in profitability and growth in e-commerce volumes 3 ss India’s largest integrated logistics platform (1) ₹1,822 Cr 1.5% -3.7% vs -7.0% Q3 FY23 revenue from services QoQ growth rate(2) Adjusted EBITDA margin (Q3 FY23 vs Q2 FY23) (Q3 FY23 vs Q2 FY23) 170 Mn 258K Tons 17.9 Mn (5.6% QoQ growth) Express parcels shipped in Q3 FY23 PTL freight handled in Q3 FY23 Sq. Ft. logistics infrastructure(3) / 1.9 Bn+ shipped since inception / 3.0 Mn+ tons shipped since FY19 26K+ 58% 18,510 Active customers(4,5) Revenue from customers Pin-codes covered(3) using two or more services(5)) (1) As per RedSeer report basis FY21 revenue (2) Growth rate of revenuefrom services (excluding revenue from traded goods) (3) As of December 31, 2022 (4) Active Customers for a quarter are those customers on whom an invoice was raised at least once during such quarter 4 (5) For Q3 FY23 Key operating metrics As of end of / for the period FY19 FY20 FY21 FY22(1) Q1 FY23 Q2 FY23 Q3 FY23 Pin-code reach(2) 13,485 15,875 16,677 18,074 18,435 18,454 18,510 Countries served 42 42 42 220+ 220+ 220+ 220+ No. of active customers(3) 4,867 7,957 16,741 23,613 29,282 28,100 26,845 Infrastructure (in million sq. ft.) 5.96 9.85 12.23 18.15 18.89 18.46 17.89 Gateways 73 83 88 123 96 96 92 Automated sort centers 17 21 19 21 21 22 22 Processing centers 138 156 129 178 189 177 172 Express delivery centers 1,744 2,030 2,098 2,961 2,948 2,904 2,751 Freight service centers 84 103 95 267 237 188 150 Team size(4) 23,639 30,634 33,242 60,373 58,045 56,504 52,789 Partner centers(constellation/BAs) 430 840 1,189 1,224 1,210 1,311 1,322 Partner agents(5) 5,191 9,782 19,844 34,360 29,808 38,624 33,088 Fleet size –daily average 3,116 3,694 5,095 9,120 11,366 11,475 11,703 Revenue/person (₹lacs)(6) 7.0 9.1 11.0 12.0 12.0 12.7 13.8 Revenue/sq.ft. (₹,Transportation)(7) 4,324 4,647 4,397 5,089 4,363 4,598 5,096 Revenue/sq.ft. (₹, Warehousing)(8) NM 379 344 495 598 586 545 (1) Figures and calculations for FY22 on proforma basis (2) Out of 19,300 Pin-codes as per India Post (3) Active Customers for a quarter are those customers on whom an invoice was raised at least once during such quarter. Active Customers for a period are calculated as the average number of Active Customers for each of the quarters in the period (4) Includes permanent employees and contractual workers (excluding partner agents, daily wage manpower and security guards) as of the last day of the relevant period (5) Count of last mile delivery partner agents in the last month of the relevant period (6) Derived by dividing revenue from operations by total team size as described in note (4); annualized for Q3 FY23 5 (7) Derived by dividing Express Parcel + PTL freight revenue by total logistics area excluding warehousing area; annualized for Q3 FY23 (8) Derived by dividing revenue from warehousing segment of Supply Chain Services by weighted average warehousing area for the year; annualized for Q3 FY23 Highlights 1 Adjusted EBITDA improvements continue QoQ, post SpotOn integration a Network footprint optimization continued in Q3 b Pricing revisions carried out with low-margin customers, expected to continue into Q4 c Continue to drive capacity utilization, especially in mid-mile operations 2 PTL Business: entering crucial March-end period with good operational and business momentum PTL business Q4 FY22(1) Q3 FY23 Dec’22 Jan’23 Tonnage (‘000 tons) 456 258 96 96 Network Service Level(2) 89% 86% 94% 95% Short shipments(2) 0.08% 0.20% 0.06% 0.05% Network Speed(3) 4.3 5.3 4.3 4.3 SCS pipeline continues to expand; new clients added in auto ancillary & parts, healthcare, home furnishing & 3 furniture, beauty & personal care, consumer electronics and construction sectors; expanded existing contracts in auto, industrial and consumer segments Completed acquisition of Algorhythm Tech in January 2023; Algorhythm’s SCM software products will enhance our SCS 4 offering with value added services and also drive cost optimization in service delivery (1) Sum of Delhivery and SpotOnfor tonnage and weighted average for other metrices (2) Weighted average of daily numbers during the period 6 (3) Average number of days to deliver shipments Q3 FY23 performance Revenue from services(1) Express Parcel revenue Express Parcel shipments (₹ Cr) YoY: (9%) (₹ Cr) YoY: (1%) (Millions) YoY: 0% QoQ: 7% Shopee QoQ: 6% 1,214 1,200 contribution in 1,125 QoQ: 1% Q3 FY22 ~5Mn 170 170 161 1,995 1,796 1,822 7% 10% 165 10% 24% 15% 16% Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 PTL freight revenue PTL freight tonnage (₹ Cr) (‘000 Tons) YoY: (42%) YoY: (42%) 61% 66% 63% 443 QoQ: (10%) 286 QoQ: (5%) 258 Q3 FY22 Q2 FY23 Q3 FY23 477 293 277 Express Parcel PTL TL SCS Cross Border (1) Revenuefrom services excludes revenue from traded goods Note: Due to rounding off, totals may not correspond with the sum of the separate figures Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 7 PTL week-wise volumes 5,000 Incremental average 4,500 daily volume excluding Impact of an extra the impact of Sunday (for holiday on account a like to like comparison 4,000 of Republic day with other months) ) s n 3,500 o T ( s 3,000 e Jan lower due to one of m the days being a Sunday u l 2,500 out of the last 3 days of o the month v . g 2,000 v a y l i 1,500 a D 1,000 500 0 1st-7th 8th-14th 15th-21st 22nd-28th Stub Nov Dec Jan Feb 8 Q3 FY23 performance Revenue from services(1) TL revenue Supply Chain Services revenue (₹ Cr) YoY: (9%) (₹ Cr) YoY: 33% (₹ Cr) YoY: 33% QoQ: (1%) QoQ: 1% QoQ: (1%) 1,995 180 178 1,796 1,822 133 7% 103 102 10% 76 10% 24% 15% 16% Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Cross-Border Services revenue (₹ Cr) YoY: (30%) 61% 66% 63% QoQ: (31%) 95 96 Q3 FY22 Q2 FY23 Q3 FY23 66 Express Parcel PTL TL SCS Cross Border (1) Revenuefrom services excludes revenue from traded goods Note: Due to rounding off, totals may not correspond with the sum of the separate figures Q3 FY22 Q2 FY23 Q3 FY23 9 Adjusted EBITDA ₹ Cr Q3 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY19 FY20 FY21 FY22(1) Service EBITDA refers to Revenue from customers(2) 1,995 1,746 1,796 1,824 1,654 2,781 3,647 7,241 cash EBITDA generated by all the services after accounting for direct variable Service EBITDA 256 (6) 86 139 42 89 136 756 and fixed costs of operations, excluding corporate overheads Service EBITDA margin 12.8% (0.3%) 4.8% 7.6% 2.5% 3.2% 3.7% 10.4% Corporate overheads(3) 182 211 210 206 230 343 389 684(3) Corp. overheads (% of 9.1% 12.1% 11.7% 11.3% 13.9% 12.3% 10.7% 9.4% revenue) Adjusted EBITDA 74 (217) (125) (67) (188) (253) (253) 72 Adjusted EBITDA margin 3.7% (12.5%) (7.0%) (3.7%) (11.3%) (9.1%) (6.9%) 1.0% Note: Due to rounding off, totals may not correspond with the sum of the separate figures (1) FY22 figures are on proforma basis, FY19, FY20 and FY21 are on reported basis (2) Includes revenue from services and traded goods 10 (3) Certain reclassifications were undertaken in corporate cost since 1Q FY23 and hence prior period figures are not fully comparable Q3 FY23: Drivers of adjusted EBITDA movements vs Q2 FY23 ₹ Cr Remarks Q2 FY23 Adjusted EBITDA (A) (125) Incremental revenue in Transport (Express and PTL) 59 • Incremental GM in transport businesses continues to be ~50% • Additional efforts that increased gross profit in Q3 FY23: (+) Incremental gross profit in Transport (B1) 58 a) Rationalizing business with less profitable customers b) Improved capacity utilisation c) Ongoing cost optimization measures and improvement in weight capture coverage (+) Decrease in Transport fixed costs (B2) 3 • Network footprint optimization Total increase in Transport service EBITDA (C = B1+B2) 61 (-) Change in service EBITDA of non-transport businesses (D) (8) (+) Decrease in Corporate costs (E) 5 Total increase in Q3 FY23 (F=C+D+E) 58 Q3 FY23 Adjusted EBITDA (A+F) (67) 11 Note: Due to rounding off, totals may not correspond with the sum of the separate figures Improvement in key costs – Q3 vs Q1 ₹ Cr Q3 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY21 FY22 Freight, Handling and Servicing Cost(1) 1,454 1,453 1,436 1,409 2,778 4,980 % of Revenue from services(1) 72.9% 83.2% 79.9% 77.4% 76.2% 72.4% Line haul expenses 687 648 645 608 1,328 2,398 % of revenue 34.5% 37.1% 35.9% 33.4% 36.4% 34.8% Contractual manpower expenses 221 240 234 213 473 751 % of revenue 11.1% 13.8% 13.0% 11.7% 13.0% 10.9% Vehicle rental expenses 409 361 381 397 680 1,355 % of revenue 20.5% 20.7% 21.2% 21.8% 18.6% 19.7% Rent 43 64 68 72 104 153 % of revenue 2.2% 3.7% 3.8% 4.0% 2.8% 2.2% Security expenses 21 24 22 23 58 79 % of revenue 1.1% 1.4% 1.2% 1.3% 1.6% 1.1% Power, fuel & water charges 35 44 45 41 72 123 % of revenue 1.7% 2.5% 2.5% 2.3% 2.0% 1.8% Packing material 6 7 7 5 12 23 % of revenue 0.3% 0.4% 0.4% 0.2% 0.3% 0.3% Stores and spares 6 8 5 3 14 28 % of revenue 0.3% 0.4% 0.3% 0.2% 0.4% 0.4% Lost shipment expense (net) 26 56 27 48 36 71 % of revenue 1.3% 3.2% 1.5% 2.7% 1.0% 1.0% 12 (1) Breakup as per notes to accounts Adjusted EBITDA Adjusted EBITDA(1) (₹ Cr) 74 81 (217) (125) (67) (188) (253) (253) 72 3.7% 3.9% 1.0% (3.7%) (7.0%) (6.9%) (9.1%) (11.3%) (12.5%) Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY19 FY20 FY21 FY22 Quarterly Yearly 13 (1) FY22 figures are on proforma basis Adjusted EBITDA bridge Adjusted EBITDA(1) ₹ Cr Q3 FY22 Q2 FY23 Q3 FY23 FY21 FY22 Remarks Total revenue from customers 1,995 1,796 1,824 3,647 7,241 Less: Total expenses 2,155 2,158 2,126 4,213 8,509 Add: Finance cost on borrowings 7 6 5 20 51 Add: Lease Adjustments due to AS 116 11 9 5 47 45 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Depreciation on right of use asset 65 58 50 190 249 properties recognised in the P&L partly as depreciation on the ROU asset Rent obligation on leased properties accounted as Lease liabilities under Ind AS 116. Rent paid on such leased Add: Interest on lease liabilities 20 18 16 68 79 properties recognised in the P&L partly as interest on such lease liabilities Actual cash rent paid on leased properties recognised Less: Actual lease rent paid (75) (67) (62) (212) (284) under Ind AS 116 Add: Non-cash recurring costs 216 221 224 237 765 Depreciation & amortization 122 142 157 164 445 Depreciation on tangible and intangible assets ESOP expense 95 79 67 72 320 Accounting expenses towards ESOPs already granted Add: Non-cash discontinued cost 0 0 0 9 300 Non-cash expense on fair value adjustment of CCPS One-time discontinued expense on account of certain Add: One-time discontinued cost 0 0 0 0 178 employee payments Add: IPO expense 0 0 0 0 0 IPO related non-operating expenses Non-cash expense due to mark to market of short-term Add: Non-cash non operating cost 0 0 0 0 0 financial investments included in other expenses Adjusted EBITDA 74 (125) (67) (253) 72 14 (1) FY22 figures are on proforma basis Adjusted cash PAT Adjusted cash PAT(1) (₹ Cr) 101 141 (187) (32) 34 (157) (57) (82) 212 6.6% 5.0% 2.9% 1.8% (1.7%) (1.9%) (2.1%) (9.2%) (10.4%) Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 FY19 FY20 FY21 FY22 Quarterly Yearly 15 Note: Not adjusted for any non-cash deferred taxes (1) FY22 figures are on proforma basis Adjusted cash PAT bridge Adjusted Cash PAT(1) ₹ Cr Q3 FY22 Q2 FY23 Q3 FY23 FY21 FY22 Remarks Profit after tax (127) (254) (196) (416) (1,081) Add: Lease adjustments due to AS 116 11 9 5 47 45 Leased properties accounted as Right of Use (ROU) assets under Ind AS 116. Rent paid on such leased Add: Depreciation on right of use asset 65 58 50 190 249 properties recognised in the P&L partly as depreciation on the ROU asset Rent obligation on leased properties accounted as Lease liabilities under Ind AS 116. Rent paid on such Add: Interest on lease liabilities 20 18 16 68 79 leased properties recognised in the P&L partly as interest on such lease liabilities Actual cash rent paid on leased properties recognised Less: Actual lease rent paid (75) (67) (62) (212) (284) under Ind AS 116 Non-cash share of gain/loss after tax of associate Less: Share of (gain)/loss of associates 0 (8) 1 0 3 company Add: Non-cash recurring costs 216 221 224 237 765 Depreciation & amortization 122 142 157 164 445 Depreciation on tangible and intangible assets ESOP expense 95 79 67 72 320 Accounting expenses towards ESOPs already granted Add: Non-cash discontinued cost 0 0 0 9 300 Non-cash expense due to fair value adjustment of CCPS One-time discontinued expense on account of certain Add: Discontinued costs & exceptional items 0 0 0 41 180 employee payments & exceptional item Non-cash expense due to mark to market of short-term Add: Non-cash non operating cost 0 0 0 0 0 financial investments Adjusted cash PAT 101 (32) 34 (82) 212 16 Note: Not adjusted for any non-cash deferred taxes (1) FY22 figures are on proforma basis Quarterly financial performance ₹ Cr Q-o-Q Y-o-Y Y-o-Y Income Q3 FY22 Q2 FY23 Q3 FY23 FY21 FY22 Growth % Growth % Growth % Revenue for services (A) 1,995 1,796 1,822 1% (9%) 4,439 7,054 59% Revenue from traded goods (B) 0 - 2 - - 11 1,88 - Revenue from customers (A+B) 1,995 1,796 1,824 2% (9%) 4,450 7,241 63% Other income 24 87 94 8% 290% 194 158 (19%) Total income 2,019 1,883 1,918 2% (5%) 4,644 7,399 59% Expense Total freight, handling and servicing cost 1,454 1,436 1,409 (2%) (3%) 3,370 5,240 56% Employee benefit expense Employee benefit expense excl. share-based 227 273 273 (0%) 20% 625 863 38% payments & one-time expenses Employee benefit expense: share based payments 95 79 67 (16%) (29%) 83 320 286% Employee benefit expense: one-time expenses - - - - - 0 178 - Other operating expense 166 145 148 2% (10%) 431 783 81% Fair value loss on financial liabilities - - - - - 9 300 - Finance costs 28 24 21 (11%) (22%) 126 131 4% Depreciation and amortization expense 187 200 207 4% 11% 559 694 24% Total expenses 2,155 2,158 2,126 (1%) (1%) 5,203 8,509 64% Share of profit / (loss) of associates (net) 0 8 (1) - - 0 (3) Profit / (Loss) before exceptional items and tax (136) (266) (209) (558) (1,113) Profit / (Loss) after Tax (127) (254) (196) (596) (1,081) Adj. EBITDA 74 (125) (67) (226) 72 Adj. EBITDA margin 3.7% (7.0%) (3.7%) 330 bps (740) bps (5.1%) 1.0% 606 bps 18 Wide ownership across organization ESOPs1 Stage Total % shareholding on fully diluted basis ESOPs granted, of which 36,648,908 4.55% Vested 3,830,631 Unvested 32,818,277 ESOPs ungranted, of which 40,344,413 5.01% Performance-based ESOPs2 14,722,500 Time-based ESOPs3 25,621,913 Total (Granted + Ungranted)4 76,993,321 9.56% Number of Employees holding ESOPs1 (vested + unvested) : 1,528 Note: Any new ESOP grants made in the future will be duly notified to the stock exchanges (1) As of 31stDecember 2022 (2) To be unlocked in three equal tranches upon achieving share prices of ₹800, ₹1,000 and ₹1,200; and vest equally over 2 years thereafter 19 (3) Vesting period of 4 years with schedule of 10%-30%-30%-30% (4) Out of the total ESOP pool of 78.1Mn, 45.3Mn options have time-based vesting and 32.9Mn options have performance-based vesting Projected ESOP costs Estimated P&L charge (non-cash) for ESOPs already Distribution of P&L charge over vesting period for granted future ESOP grants(3) Cost of Cost of time-based ₹ Cr performance-based options(1) Year Time-based options(2) FY23 238 57 Y1 42.5% FY24 143 94 Y2 32.5% FY25 71 40 Y3 17.5% FY26 23 12 Y4 7.5% FY27 2 2 Total 477 204 Total 100% Note: Any new ESOP grants made in the future will be duly notified to the stock exchanges (1) Related to costs attributable to time-based ESOPs already granted; in event of forfeiture of ESOPs upon resignation/ terminationof employee prior to completion of vesting, costs will be reversed 20 (2) Related to costs attributable to 5.1 Mn performance-based ESOPs already granted. The cost is calculated using Monte Carlo simulation. Options to be unlocked in three equal tranches upon achieving share prices of ₹800, ₹1,000 and ₹1,200; and vest equallyover 2 years thereafter (3) Cost of an ESOP = Fair market value at time of grant minus exercise price (₹1), to be recognized in P&L over the vesting period as per the schedule in the table Definitions and abbreviations Cross Border CrossborderexpressparcelandfreightservicebytheCompany ONDC Opennetworkfordigitalcommerce TheproformaconsolidatedP&L,adjustedEBITDAandadjustedcashPAThavebeencompiledbyourCompanytoillustratetheimpactoftheacquisitionofSpotOnLogisticsPrivateLimitedon Proforma financials our historicalfinancial statementsfor the year ended March31,2021 andconsolidatedfinancialstatements for the yearended March 31,2022 as if the acquisition occurredon1stApril2020 and1stApril2021respectivelyandhavenotbeenreviewed/auditedbyauditors PTL freight ParttruckloadfreightservicebytheCompany RedSeer report Reporttitled“LogisticsMarketinIndia”datedApril21,2022preparedbyRedSeerinconnectionwiththerecentpublicofferbytheCompany SCS SupplychainservicesbytheCompanythroughwhichtheCompanyprovidesintegratedsupplychainsolutions SpotOn SpotOnLogisticsPrivateLimited TL TruckloadfreightservicebytheCompanywhichconnectsshipperswithfleet-ownersandsuppliersoftruckloadcapacityacrossthecountryviaacentralizedbiddingandmatchingengine 21 Thank You For any queries please write to us at ir@delhivery.com