The Leading Global Internet Platform Outside the US and China
Business Update Building Global Giants in Food & Groceries – the new Frontier in eCommerce
February 2015 Disclaimer
This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
This presentation contains certain forward-looking statements relating to the business, financial performance and results of Rocket Internet AG, its subsidiaries and its participations (collectively, “Rocket”) and/or the industry in which Rocket operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of Rocket or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Rocket operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and Rocket’s ability to achieve operational synergies from acquisitions. Rocket does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Rocket with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Rocket since such date. Consequently, Rocket does not undertake any obligation to review, update or confirm recipients’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation.
Neither Rocket Internet AG nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation.
1 1 Rocket Internet Set out Clear Objectives at IPO
Focus on significant market opportunities
Build global leaders
Increase ownership in Proven Winners
Continued value creation
Launch new business models
Continued build-out of Rocket Platform
2 Our Vision Food & Groceries is the Next Big Frontier in eCommerce
3 Food & Groceries – the Next Frontier
Global eCommerce market size(1)
US Online (2) penetration 35% 42% 19% 7% <3%
€324bn
€27bn Food and €153bn Groceries Home and €167bn Living Fashion €160bn Online Travel Consumer Goods
Source: BCG, IDC, Euromonitor, Planet Retail, BookStats (2013), Consumer Electronics Association (2014), eMarketer (2013), Morgan Stanley (2013), Phocus Wright Notes: (1) Global eCommerce market size per segment; (2) US online grocery sales as % of total grocery retails sales in 2018 (estimated 5-year CAGR of 11%) 4 Food & Groceries – a Massive Opportunity
€4.7 trillion €90 billion global food retail industry(1) global takeaway food delivery market(3)
<3% online penetration(2) 5% penetration in the US(4)
Source: BCG, Callcredit, Daedal, Euromonitor, IRC, MarketLine, Wells Fargo Notes: (1) Global food retail industry value 2013; (2) US online grocery sales as % of total grocery retails sales in 2018 (estimated 5-year CAGR of 11%) (3) Global takeaway food delivery market size by 2019, CAGR 2014-19E of 2.3%; (4) As of June 2014, average penetration in the US by 2018 5 Capitalising on the Opportunity with two Proven Models
Global Online Takeaway Group
Global Leader in Leader in Online Subscription Based Takeaway Market Grocery eCommerce
6 We Have Cracked Key Food & Groceries Business Models Global Online Takeaway Group
22m 78m Ann. Ann. servings(1) orders(2)
Notes: (1) December 2014 annualised (2) December 2014 annualised; figure includes 100% of Delivery Hero 7 HelloFresh Global Leader in Subscription Based Grocery eCommerce
8 How we Cracked the Model – HelloFresh No Planning What to cook What to buy
Eco Friendly Product No Shopping No food wastage Superior Delivery to the door Packaging recycled Customer Proposition
Value Diverse & Healthy Eating Competitive prices Diverse recipes Healthy produce
9 Consumer Behaviour is Changing
10 Strong Geographic Footprint with Significant Growth Potential
7 countries 217m 35% €1.5tn including all of US households of global GDP food retail industry
Source: World Bank, IMF, Planet Retail, Euromonitor
11 Sizing up the Market Opportunity – US Example Households US households with 54m income > $60k Actual food spend per $9,700 household(1)
Household meals/week 21(2)
Potential HelloFresh 5 meals/week
Potential HelloFresh ~24% share meals/week
Potential HelloFresh share of household food ~$2,300 spend
Source: US Census Bureau, USDA, company information Note: (1) 2013 food spend per household with income > $60k as per US Census bureau and USDA (2) Based on 3 meals per day 12 Sizing up the Market Opportunity – US Example (Cont’d)
Households with HelloFresh Meal Spend Market Opportunity(1) income >$60k
54m $2,300 $124bn
Implied current HelloFresh market share of <0.001%
Source: US Census Bureau, USDA, company information Note: (1) Based on 2013 average annual spend on food per household with income > $60k and assumed share of spend on ready to cook meals using HelloFresh average annual subscription
13 HelloFresh Business Model – Operating Excellence at All Stages
Best-in-class recipe created by nutritionist
Nationwide Sourcing of high delivery quality and fresh ingredients
Pick & pack in central warehouse facility
14 Recipes and Products Offered in a Customer-friendly Environment
15 Sourcing of High Quality Ingredients
16 Absolute Dedication to Quality Products
Simple, healthy and delicious recipes FocusFresh, onhigh significant quality ingredients market opportunities based on a curated menu Revenue per box varies by country and size of the box Building global leaders Menus are tailored to each market IncreasingHuge database ownership of recipes, positions all with inexact Proven costs Winners by buying secondary shares andAll menus participating have specific in funding guidelines rounds (preparation time, calories)
PresentationContinuously and quality increase to highestLPV of Rocketstandards Rustic, natural, eco-friendly – more akin to buying from a farmers market than from a supermarket Launch new proven business models Customer interaction encouraged! BuildingCustomer out ratings the Rocket and qualitative platform assessment online
Menus are pre-planned 4-6 weeks ahead of time Tailored for seasonality, taking into account market prices which are locked-in at the time of ordering Produce sourced from independent suppliers
17 Superior Fundamentals of Business Model
StrongFocus ongrowth significant potential: market opportunities Most grocery shopping is currently conducted offline
ValuableBuilding globalcustomer leaders base: High satisfaction scores and retention rates Increasing ownership positions in Proven Winners by buying secondary shares Recurringand participating revenue in model: funding rounds Subscription model increases revenue certainty and customer interaction
HighContinuously operating increase leverage: LPV of Rocket Increasing profitability Launch new proven business models Attractive unit economics and working capital dynamics: High cash conversion and profitability Building out the Rocket platform
18 Outstanding Operational and Financial Performance
Key metrics 2014
€
172k 21.7m ~€120m Active subscribers Annualised Annualised servings(1) net revenues(1)
Source: Unaudited HelloFresh information (1) Based on annualised December 2014 servings and revenues
19 Outstanding Operational and Financial Performance
Active subscribers(1) # of Servings(2) Net revenues ('000, ordered in last 3 months) (m) (€m)
(3) (3) 172 21.7 ~120~120 (3)
415%
386% 33 532% 457% 2.4 15 7 0.4 3
2012A 2013A 2014E 2012A 2013A Dec-14 2012A 2013A Dec-14 Annualised Annualised
Notes: Unaudited HelloFresh information (1) Number of people subscribed to services and having ordered at least once during the last three months (2) Number of all servings/meals sold and shipped to customers in period (3) Based on annualised December 2014 servings and revenues
20 HelloFresh – Rocket’s Single Largest Investment
FundingFocus on round significant market opportunities
Building global leaders €100m
“US-based tech growth capital VC with Increasing ownershipinvestments positions in 200+ growth in Proven-stage tech Winners by buying secondary€10m shares companies in 65 countries" and participating in funding rounds
Acquisition of secondary shares by Rocket Internet Continuously increase LPV of Rocket 4.9%(1) €30m
TotalLaunch Rocket new Internet proven investment business modelsinto HelloFresh €130m
Building out the Rocket platform
Notes: (1) On a pre additional management participation basis
21 Funding Round Provides Basis for Future Growth
USFocus market on significant market opportunities Vertical integration in value chain Building global leaders New markets Increasing ownership positions in Proven Winners by buying secondary shares Improved offering and participating in funding rounds New products / adjacent food Continuously increase LPV of Rocket
Launch new proven business models
Building out the Rocket platform 22 Significant LPV Uplift and Majority Ownership by Rocket
HelloFresh (€m) (1) LPV 624
131
LPV at IPO Jan-15
(1) 37.1% 51.7%
Rocket stake Rocket stake At IPO post transactions Notes: (1) On a pre additional management participation basis
23 Global Online Takeaway Group Global Leader in Online Takeaway
24 Key Strategic Investments in the Online Takeaway Market
Rocket Internet stake Consideration Transaction structure post transaction Primary / €496m c.30% Secondary
Undisclosed 100% Secondary
Undisclosed 100% Secondary
25 Creation of the Global Online Takeaway Group
100%
Global Online Takeaway Group
>50%(1) 100% 100% c.30%
(Emerging Markets) (Spain) (Italy) (Various)
(1) Includes indirect stake held through Latin America Internet Holding
26 Building the Global Leader in the Online Takeaway Market
39 countries(1) 24 90k 5.8m 63m countries restaurants(2) users in H2 ‘14 ann. orders(3)
#1 in 31 countries
c.46k restaurants(2) 1 4k 560k 1.4m country restaurants(2) users(4) ann. orders(3)
2.3m active users(2)
13m annualised orders(3) 1 312 240k 1.1m country restaurants(2) users(4) ann. orders(3) Source: Unaudited foodpanda, Delivery Hero, Pizzabo and LaNeveraRoja information Notes: foodpanda figures are pro forma for acquisitions (1) Includes 10 African countries owned by Africa Internet Group; (2) As of December 2014; (3) Based on December 2014; (4) Based on December 2014 visits
27 Global Online Takeaway Group – Global Leader in Online Takeaway
64 50 140k 78m countries(1) no. 1 countries restaurants ann. orders(2)
Source: Unaudited foodpanda, Delivery Hero, Pizzabo and LaNeveraRoja information Notes: foodpanda figures are pro forma for acquisitions, Global Online Takeaway Group numbers include 100% of Delivery Hero (1) Includes 10 African countries owned by Africa Internet Group; excludes overlapping countries (2) Based on December 2014
28 Present in 64 Countries and No.1 in 50
#1 #2 foodpanda(1)
Delivery Hero(2)
La Nevera Roja
Pizzabo
Notes: Market position based on number of orders; foodpanda figures are pro forma for acquisitions (1) 10 African countries (Ghana, Ivory Coast, Kenya, Morocco, Nigeria, Rwanda, Senegal, Algeria, Tanzania, Uganda) where the foodpanda model is owned by the Africa Internet Group (2) Market leader in China within professional / white collar segment; Denmark presence represents minority stake 29 Capturing the Largest Market…
Global Online Takeaway Group(2)
Countries 39 24 1 1 64 12 2 (#)
Population 3,369 2,074 47 61 5,349 527 383 (m)
Nominal $ GDP 14,547 27,028 1,397 2,149 42,919 16,538 20,377 (US$bn)
Internet penetration(1) 24.8 51.1 75.0 80.5 34.9 71.0 80.9 (%)
Source: EIU, Euromonitor, BMI Notes: foodpanda figures are pro forma for acquisitions, Global Online Takeaway Group numbers include 100% of Delivery Hero (1) Calculated as number of internet users relative to population (2) Excludes overlapping countries
30 ... with the Largest Company in the Sector Countries of Takeaway restaurants Ann. orders operation(1) (‘000s) (m) Foodpanda, LaNeveraRoja, Pizzabo Delivery Hero 64 140(2) 78 74(6) (5) 24 67
90 63(4)
(3) 41 41 12 30(2) 50 2 15(4)
Global Global Global Online Online Online Takeaway Takeaway Takeaway Group Group Group
Source: Company information including unaudited foodpanda and LaNeveraRoja information Notes: foodpanda figures are pro forma for acquisitions; Global Online Takeaway Group numbers include 100% of Delivery Hero (1) Excludes overlapping countries, includes 10 African countries owned by Africa Internet Group for foodpanda (2) As of December 2014 (3) As of June 2014 (4) December 2014 annualised (5) H2 2014 orders annualised (6) Q4 average daily orders annualised 31 Proven Peer Business Models
Market Revenues EBITDA capitalisation(1)
(£m) 3.8 14.5 5.2 22.8 and UK 39.1 97 16 62% 14 70 60 58% 44 518% 591% US$2.8bn 2 2
2012 2013 1H13 1H14 2012 2013 1H13 1H14
(US$m) 23.4 31.0 25.8 33.6
254 79 49% 170 98% 135 50% 40 95% 45 90 23 US$2.8bn
2013 2014 2H13 2H14 2013 2014 2H13 2H14
% EBITDA margin
Source: FactSet as of 4 February 2015 Note: (1) Share prices as of 4 February 2015 (close) of £3.50 (JustEat) and US$37.43 (GrubHub)
32 Online Penetration in Europe and Developing Markets with Significant Upside eCommerce penetration(1)
14% Eastern Europe 3.3% 6.7% Western Europe
6% 2.3%(4) 3% 6.3%(2) 14.2%
11.0% 6.1% US Western Emerging 1.5% Europe(2) Markets 0.7% (ex China)(3)
3.2%
6.8%
2.3%
Source: Morgan Stanley Research Estimates, Euromonitor, eMarketer, Forrester, National Government Data Sources (1) 2014E online retail sales in relation to total retail sales; (2) Average based on UK, Germany, France, Spain, Italy, Netherlands and Sweden eCommerce penetration; (3) Emerging Markets defined as Argentina, Brazil, India, Russia, Chile, Mexico (excluding China); (4) Eastern Europe B2C eCommerce sales share 2014F (eMarketer), excluding Russia 33 Highly Scalable and Proven Marketplace Business Model
€ € Less: Commission
1 2 Order placement & Order transmission payment Online food ordering marketplace
3
Food cooked and delivered by restaurant or foodpanda(1) End Customers Restaurant Partners
(1) Last mile delivery selectively carried out by foodpanda
34 How We Have Cracked the Model – Offline Takeout Broken for… … Restaurants … Diners
ReachingFocus on hungrysignificant diners market is difficult opportunities Limited choices
Marketing requires upfront expense Frustrating phone calls Building global leaders Capital and resource constrained Long hold times Increasing ownership positions in Proven Winners by buying secondary shares Limitedand participating technology in expertise funding rounds Error-prone
Continuously increase LPV of Rocket
Launch new proven business models
Building out the Rocket platform
35 How We Have Cracked the Model – Superior Value Proposition
Restaurants Diner
● FocusCustomer on significantreach market opportunities● Convenience / accuracy of order
● BuildingPay for performance global leaders ● More choice / transparency
● IncreasingStreamlined ownership ordering / positions in Proven● WinnersPayment by security buying secondary shares andseamless participating payment in funding rounds
Continuously increase LPV of Rocket ● Customer service ● Customer service / insight from order data Launch new proven business models
Building out the Rocket platform 36 How We Have Cracked the Model – Network Effect of Takeaway Ordering
More Restaurants
FocusMore restaurants on significant more market choices opportunities for diners More diners more orders BuildingMore diners global / more leaders orders more restaurants
Increasing ownership positions in Proven Winners by buying secondary shares and participatingMore in fundingDiners rounds
Continuously increase LPV of Rocket
37 Launch new proven business models
Building out the Rocket platform Online Takeaway Business Model with Superior Fundamentals
Urbanisation:Focus on significant market opportunities Driving food takeaway & convenience
Smartphone/mobileBuilding global leaders penetration: Infrastructure for continued strong growth
StrongIncreasing value ownership proposition: positions in Proven Winners by buying secondary shares Forand consumers participating and in restaurants funding rounds alike
PlatformContinuously stickiness: increase LPV of Rocket For consumers and restaurants alike
PositiveLaunch newnetwork proven effects: business models High barriers to entry Building out the Rocket platform Attractive unit economics and working capital dynamics: High cash conversion and high profitability
38 Further Growth to Come from Synergies
• In-country • One IT platform consolidation • One marketing team • Centralized BI & finance functions
• Flexible capital • Global best practice allocation and sharing bargaining power
39 foodpanda Emerging Markets Leader in Online Takeaway Market
40 foodpanda – Market Leader in Emerging Markets
39 31 526 46k 2.3m >13m >400% >€160m countries(1) no. 1 countries cities restaurants users annualised order annualised orders(2) growth(3) GMV(4)
Source: Unaudited foodpanda information Notes: foodpanda figures are pro forma for acquisitions (1) Includes 10 African countries owned by Africa Internet Group (2) Based on December 2014 (3) H2 2014 over H1 2014; mixture of organic and inorganic growth (4) December 2014 annualised; incl. VAT2 41 foodpanda – the Leader in Food Takeaway in Emerging Markets
#1/2 Romania #1/2 #1 Russia #1 Croatia #1 Bulgaria Hungary #1 Bosnia & Herzegovina Azerbaijan #1/2 Serbia #1 Montenegro #1 #1 Pakistan #1 Taiwan #1 Hong Kong #1 Mexico #1 Thailand Saudi #1 India #1 Arabia #1 Philippines
#1 Bangladesh #1 No. 1 market position #1 Malaysia
#1 Indonesia No. 2 market position(1) #1 Singapore No. 1 market position in African country(2) owned by Africa Internet Group
Notes: Pro forma for recent M&A transactions (1) Including: Brazil, Egypt, Vietnam, Georgia, Jordan, Brunei, United Arab Emirates and Kazakhstan (2) 10 African countries (Ghana, Ivory Coast, Kenya, Morocco, Nigeria, Rwanda, Senegal, Algeria, Tanzania, Uganda) where the foodpanda model is owned by the Africa Internet Group 42 foodpanda is Present in 12 of the World’s 20 Largest Cities
Top 20 Urban Areas (Population in million) Foodpanda presence
Tokyo-Yokohama 37.6 Jakarta 30.0 Delhi 24.1 Seoul-Incheon 23.0 Manila 22.7 Shanghai 22.7 Karachi 21.6 New York 20.7 Mexico City 20.3 Sao Paolo 20.3 Beijing 19.3 Guangzhou-Foshan 18.3 Mumbai 17.7 Osaka-Kobe-Kyoto 17.2 Moscow 15.9 Los Angeles 15.3 Cairo 15.2 Bangkok 14.9 Calcutta 14.8 Dhaka 13.9
Source: Demographia World Urban Areas Note: Population estimate as of May 2014
43 foodpanda Has Grown Exponentially since Launch
Restaurants Orders(1) GMV(1,2) Revenues(1) (‘000) (m) (€m) (€m)
45.8 >16 >13 >160
565%
472% 6.9 688% 697% 0.7 1.2 0.1 0.4 0.7 5.8
2012A 2013A 2014E 2012A 2013A Dec-14 pro 2012A 2013A Dec-14 pro FY20132013A DecDec-14-14 pro forma forma Annualisedforma Annualised Annualised Annualised
Source: Unaudited foodpanda information Notes: foodpanda 2014 figures are pro forma for acquisitions (1) 2014 data based on annualised December figure (2) 2012 and 2013 GMV excluding VAT; 2014 GMV including VAT 44 Mobile First Strategy Is Paying Off
Mobile Order Development Mobile orders Mobile order share >Focus8m app on installs significant as of December market 2014 opportunities (pro 1,200,000 50% forma for acquisitions)
45% Overall mobile order share increased by 20% 1,000,000 Building global leaders 40% since the start of the year
35% Preinstallations important growth channel 800,000 Increasing ownership positions in Proven Winners by buying secondary shares 30% for mobile and participating in funding rounds 600,000 25%
20% 400,000 Continuously increase LPV of Rocket 15%
10% 200,000 5% Launch new proven business models
0 0% Q1 Q2 Q3 Q4 Building out the Rocket platform 2014 Source: Unaudited foodpanda information Notes: Chart reflects foodpanda only
45 Exclusive Partnership with WeChat Messaging Apps
WeChat, the Largest Messaging App in the World
>Focus250m active on significant monthly users market opportunities Regular messages to all users recommending foodpanda UsersBuilding are ableglobal to place leaders their order within the WeChat app foodpanda can message WeChat users with targeted messagesIncreasing and ownership push downloads positions of the in foodpanda Proven Winnersapp by buying secondary shares and participating in funding rounds Partnerships with other Messaging Apps
CooperationsContinuously with increase leading messaging LPV of Rocket apps per country, e.g.: Over 300k followers on Line in India that Launchreceive new daily provencommunication business models Over 200k BBM followers in ME Building out the Rocket platform
46 Exclusive Partnership with OpenRice OpenRice, the Leading Restaurant Recommendation Platform in Asia
OpenRiceFocus on with significant >50,000 restaurants market opportunities 5m impressions monthly Building global leaders “Order now” button next to every restaurant supported on foodpanda Increasing ownership positions in Proven Winners by buying secondary shares OpenRice as lead source for further restaurant additionsand participating for existing in and funding new markets rounds
foodpanda imports up to 700,000 restaurant reviews Continuously increase LPV of Rocket and ratings
Since launch already 15-25% incremental traffic for Launch new proven business models both sites in the target markets
Building out the Rocket platform Source: Unaudited foodpanda information
47 foodpanda’s Operational Excellence…
Order transmission printers
3GFocus-/GPRS on -significanttriggered printer market for opportunitiesguaranteed order transmission <2min
FreeBuilding and globalautomated leaders order processing
foodpanda Point-of-Sale (POS) system Increasing ownership positions in Proven Winners by buying secondary shares Nativeand participating POS tablet inapp funding for vendor rounds self-administration, price/menu updates and invoicing
NativeContinuously iOS/Android increase phone LPV app of Rocketfor order dispatching
Deliveries tracked in real-time with Google Maps Launch new proven business models
POS integration Building out the Rocket platform Deep integration with POS systems from leading software developers for real-time processing of orders
48 … Drives User Experience and Profitability
Share of automatically processed orders
70% Focus>65% of on foodpanda significant orders market do not needopportunities 65% manual call center handling
60% Quicker order placement and delivery Building global leaders 55% through automation
50% Lower processing cost Increasing ownership positions in Proven Winners by buying secondary shares 45% andLocal participating competitors are in fundingnot able torounds provide 40% similar technologies 35% ContinuouslyLock-in effect with increase restaurants LPV by of improving Rocket experience and reducing costs 30% 25% Launch new proven business models 20% Jan-2014 Apr-2014 Jul-2014 Oct-2014 Jan-2015 Building out the Rocket platform Source: Unaudited foodpanda information
49 Complementing Organic Growth with Acquisitions
India
January 2015 Acquired Just Eat India to consolidate position December 2014 Acquired Acquired FoodbyPhone in Donesi.com in Thailand November 2014 Serbia, Montenegro Acquired Koziness Acquired and Bosnia & in Hong Kong September 2014 TastyKhana in India Herzegovina Acquired EatOye in Acquired Entrega through asset swap June 2014 Acquired Pauza.hr Pakistan Delivery in Brazil Acquired PedidoYa, in Croatia Acquired Delivery Acquired along with SeMeAntoja & Acquired Club, No.1 online Foodrunner network contributed Superantojo in NetPincer.hu in delivery company in with branches in hellofood business Mexico Hungary Russia Singapore, Malaysia and the Philippines
50 India No.1 Player in a Highly Attractive Market
51 India – Highly Attractive Market
€1.6tn+ 9% 1.2bn+ 108 177m+ 9% GDP(1) Annual GDP Population Cities 500k+ Internet users Smartphone growth ‘13-18 population(3) penetration
LeadingFocus on player significant with 3.3m market annualised opportunities orders at the end of 2014(2)
MoreBuilding than global 200 cities leaders covered “Sorry China, but it's time to step aside. By nextIncreasing year, India ownership could be the positions world's fastest in Proven- Winners by buying secondary shares growingand participating large economy” in funding rounds - CNN Money
Source: IMF,Continuously IDC, WCIS, United Nations increase Organization LPV of Rocket Note: (1) 2013A converted at EUR/INR = 70.086; (2) Pro forma for acquisitions – based on December 2014 annualised; (3) 2015 estimate
52 Launch new proven business models
Building out the Rocket platform India – We Have Created the Market Leader through Organic Growth and M&A
India India
Focusc.160 cities on significant market opportunitiesc.85 cities c.200 cities
283k active users 220k active users 156k active users Building global leaders #1 c.5,700 restaurants c.3,000 restaurants c.11,600k restaurants Increasing ownership positions in Proven Winners by buying secondary shares 1.7m annualised orders 0.9m annualised orders 0.7m annualised orders andbased participating on December in funding roundsbased on December based on December 2014 2014 2014 Continuously increase LPV of Rocket
Launch new proven business models Source: Unaudited foodpanda, Just Eat India and Tasty Khana information
Building out the Rocket platform 53 Ele.me in China Shows Potential of Online Takeaway Model
US$350m funding round
250 200k+ 20m+ 100m+ Cities Restaurants Users Orders
Source: Company Information; News reports
54 Delivery Hero Market Leader in 19 Countries
55 Delivery Hero – At a Glance
24 No.1 90k 5.8m 62.6m 96% €656m countries leader restaurants(1) active users ann. order GMV in 2014 19 countries in H2 2014 orders(1) growth(2)
Source: Unaudited Delivery Hero information Notes: (1) December 2014 (2) H2 2014 over H1 2014
56 Market Leader Across Major Countries
Sweden 1 1 Finland
UK 2 2(1) Denmark Germany 1 1 Poland Austria 1 Switzerland 2 1 1 Czech Republic Slovakia 1(2) China 1 Korea 1 Puerto Rico
1 Venezuela Panama 1 1 Colombia Ecuador 1 2/3 Brazil Peru 1 1 Paraguay 2 Australia # Market position Chile 1 1 Uruguay
1 Argentina
Source: Delivery Hero information Notes: Market position based on number of orders (1) Minority stake (2) Within professional / white collar segment 57 Significant Growth Trajectory…
Number of Restaurants Active customers Orders GMV (‘000) (m) (m) (€m)
429.4 25% 90 5.8 57% 26.1 90% 96% 72
3.7 13.7 Non-Mobile 226.3 13.3
7.2 386% 386% 386% 12.4 Mobile
6.1
Jun-14 Dec-14 H1 '14 H2 '14 H1 '14 H2 '14 H1 '14 H2 '14
Notes: Unaudited Delivery Hero information
58 … Resulting in Strong Financial Performance
Revenue Gross Margin Normalized EBITDA Margin (€m) (%) (%)
28.1 47.3 (18.7) (18.9)
55.3 H1 '14 H2 '14 85.5%
65%
33.6 83.6%
(34.2)%
386% 386%
(55.7)%
H1 '14 H2 '14 H1 '14 H2 '14
X.X Absolute Value (€m)
Notes: Unaudited Delivery Hero information
59 Highly Profitable at Scale
Two Most Profitable Markets EBITDA Margin UK EBITDA Margin Group EBITDA Margin
52.9% 49.5%
39.1% 37.1% 32.6% 33.4% 31.0%
22.2% 23.4% 20.9% 17.2% 15.6%
1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 2012 2013 1H2014 2012 2013 (1) FY2014
Source: Unaudited Delivery Hero Information; JustEat and grubHub filings Notes: (1) PF for acquisition of Seamless
60 Southern Europe Highly Attractive Markets
61 Spain and Italy are Amongst the Most Attractive Markets in Europe…
Market Size by Sample EU Countries
2.5
2.0
1.5
1.0 GDP (EUR trn) (EUR GDP
0.5
Largest EU market spaces
0.0 0 10 20 30 40 50 60 70 80 Population (m inhabitants)
Source: J.P. Morgan equity research Chart includes UK, Denmark, France, Italy, Spain, Ireland, Netherlands, Norway, Belgium
62 … with High Growth Potential in Food Delivery
Annual Food Delivery Market Sizes ($bn, 2013)
+0.9% +0.7% +2.7% +4.7% +9.2% +3.6% N/A
5.7
4.0 3.6
1.7 1.7 0.9 0.9
Italy Spain France NL Brazil Switzerland Belgium
% Takeaway market CAGR 2011-13
Notes: Euromonitor (Sep 2013), Callcredit and Sector Expert Estimates, FX rate of 1,55 GBP/USD used
63 La Nevera Roja Food Home Delivery in Spain
64 Acquiring the No. 2 Food Delivery Player in Spain
FocusAcquisition on significant of 100% market of LaNeveraRoja opportunities
BuildingStrong #2global player leaders with attractive unit economics
IncreasingUS$4.0bn ownership Spanish online positions takeaway in Proven market Winners potential by buying secondary shares and participating in funding rounds
ContinuouslyExpansion potential increase into LPV Southern of Rocket Europe
LaunchIT and newmarketing proven synergies business models
Building out the Rocket platform
65 Outstanding Operational and Financial Performance
Restaurants Orders GMV Net revenues ('000) (m) (€m) (€m)
4.3 3.4 1.4 25.2
122%
1.9
4.2 0.2 0.4
2013A 2014A 2013A Dec-14 2013A Dec-14 2013A Dec-14 Annualised Annualised Annualised
Source: Unaudited LaNeveraRoja information
66 Pizzabo.it Food Home Delivery in Italy
67 Italian Market Contender – Pizzabo
FocusAcquisition on significant of 100% market of Pizzabo opportunities
BuildingStrong #2global player leaders
IncreasingUS$5.7bn ownership Italian online positions takeaway in Proven market Winners potential by buying secondary shares and participating in funding rounds Growth potential: Continuously Nation-wide increase expansion LPV of Rocket Introduction of mobile app Launch new proven business models IT and marketing synergies Building out the Rocket platform
68 Outstanding Operational and Financial Performance
Orders GMV Commissions 1.5 (m) 1.1 (€m) 12.5 (€m)
0.6 6.8 0.8
2013A Dec-14 2013A Dec-14 2013A Dec-14 Annualised Annualised Annualised
Source: Unaudited Pizzabo information
69 Financial Technology Building out the Online Lending and Online Payment Initiative
70 Massive Market Opportunity
Online Lending Online Payments
$12 trillion $400 trillion Global Consumer Lending Global Non-Cash Total Market(1) Transactions
~0.2% P2P Lending ~0.3% online transactions(2)
Marketplace model to facilitate efficient Increasing eCommerce penetration Focussupply and on demand significant of capital market opportunities Mobile is key growth driver Superior cost and speed advantage Building global leaders Source: IDC, Euromonitor, Capgemini Payments Report, Boston Consulting Group Notes: (1) Outstanding consumer credit balance (2) Represents global e-commerce sales volume Increasing ownership positions in Proven Winners by buying secondary shares 71 and participating in funding rounds
Continuously increase LPV of Rocket
Launch new proven business models
Building out the Rocket platform Rocket Capitalises on 2 Significant Opportunities in FinTech
Lending Payments
PayCo e-Wallet
72 Rocket Companies Covering the Major Lending Opportunities
Proven Business model Rocket Internet
Consumer
SME
SME (Short Term)
Online Asset-backed
73 Payments Leader with Focus on Emerging Markets
e-Wallet Payment Processing
PayCo e-Wallet
Payment champion for Emerging SME payment service provider FocusMarkets on significant market opportunities with presence in 39 countries
Mobile-centric wallet supporting Buildinglegacy devices global leaders Highly localized download and upload options Increasing ownership positions in Proven Winners by buying secondary shares and participating in funding rounds
Continuously increase LPV of Rocket 74
Launch new proven business models
Building out the Rocket platform JV for Mobile-First Payment Solutions in Emerging Markets
IP, platform and business Global network of online operations of market companies in 116 markets leading mobile-first & leading payment payment platform platforms
Leveraging 14 years of mobile payment experience
75 Mobile Payments Winner
5.4m 5m 300,000 7 €3.4bn people addressed Active customer Active trade International Mobile money for payments accounts in accounts deployments for transaction value Philippines MasterCard handled in 2013
76 PayCo's Superior Approach Towards "Mobile Wallet" Concept
Scope of PayCo Payment Solution for Emerging Markets, targeting unbanked/uncarded people
Access to online payments, P2P transfers, bills payments and mobile phone load/airtime Exclusive discounts on selected partners and offline payments with exclusive partnerships Proprietary card issuer capabilities enables access to acquired and non-acquired merchants Acquired merchants currently comprise e.g. Zalora and Philippine Airlines
77 Building Best-in-Class Mobile Wallet Tailored for Emerging Markets Mobile-centric Customer friendly mobile- centric technology
Highly localized B2C & C2C Enable local upload / Leverage Rocket Internet’s download of funds eCommerce ecosystem in emerging markets
Versatile Customized integration with merchants 78 Superior Consumer Proposition
Merchant Value Proposition Customer Value Proposition
Online transactions B2C Highly localized customer Merchant Customer cash upload options (e.g. Swipe Terminals partner stores)
P2P (merchant) app 1 Online transactions 2 Bill payment ATM and card transactions C2C
Off-line, highly localised Loading of prepaid balance countrywide presence 1 Upload ATM and card transactions 2 Download 1 Customer Global remittances
79 Q3/9M 2014 Results for Select Proven Winners Companies Are on Track
80 Strong Portfolio of Proven Winners
9M 2014 Revenue €m 132 (1) (1) 124 118 105
(1) 69
36 (1) 24
(2) (2) (2) (2) BRL 405m RUB 5,858m INR 5,407m AED 111m
Fashion General Home & Living Merchandise Source: Company’s unaudited consolidated financial statements based on IFRS and company records Notes: Shows only a subset of Proven Winners (1) Converted to EUR using 1-Jan-14 – 30-Sep-14 average FX rate: BRL/EUR = 0.3248, INR/EUR = 0.0128, RUB/EUR = 0.0202, AED/EUR = 0.2128 (2) 9M 2014 Revenue in respective reporting currency
81 81 Continued Strong Growth
Revenue Growth 9M 2014 vs 9M 2013
224%
169% 94% 83%
60% 61%
36%
(1) (1)
Fashion General Home & Living Merchandise
Source: Company’s unaudited consolidated financial statements based on IFRS and company records Notes: Shows only a subset of Proven Winners; above growth rate are derived from reporting currency financials and KPIs (1) Based on GMV 82 Strong EBITDA Margin Improvement as Proven Winners Scale Average Average Average Year of Inception 20xx (68%) (56%) (42%) EBITDA Margin 9M 2013 EBITDA Margin FY 2013 (50%) 2010 EBITDA Margin 9M 2014 (49%) (39%)
(50%) 2010 (37%) (33%)
(88%) (1) 2010 (57%) (58%)
(104%) 2012 (93%) (8%)
N/A (71%) 2011 (90%)
EBITDA Margin Percentage (49%) Point Improvement (41%) 2009 (29%) 9M 2014 / FY2013 14pp N/A (41%) 2011 (34%)
Source: Company’s unaudited consolidated financial statements based on IFRS and company records Notes: Shows only a subset of Proven Winners (1) Financial year ending March 2014 83 Q3 2014 Global Fashion Group – Highlights Company Revenue Gross Profit EBITDA GMV Total Orders(1)
Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014
+40% 160 BRL(m) 49 (m) +33% 144 115 32 108 (40)% +38% 1.2 (40)% 34% 0.8 Latin America 30% (43) (57) RUB(m) (m) +81% 5,133 +69% 2,056 739 +45% 0.9 1,220 2,829 0.6 370 (46)% (34)% Russia & CIS 36% 30%
(567) INR(m) (692) (m) +146% 2,160 +177% +193% 3,458 2.5 (40) (55)% (72)% 878 (26)% 1,248 0.9 (5)% India (482) (569) (1,550) AED(m) (m) 8 +242% 52 +265% 62 +246% 29 15% 0.14
15 56% (82)% 17 0.04 Middle East 7 48% (12)
Source: Company’s unaudited consolidated financial statements based on IFRS and company records Notes: Shows only a subset of Global Fashion Group (1) Showing total transactions, i.e. incl. marketplace transactions, for Jabong 84 Q3 2014 General Merchandise– Highlights Company GMV Revenue Gross Profit EBITDA Total Transactions(1)
Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 EUR(m) +90% 24 (m) 15 N/A +151%
2.3 0.4
13 (88)%
Latin 15% 0.1 America
(13) N/A N/A
Source: Company’s unaudited consolidated financial statements based on IFRS and company records Notes: (1) Includes regular orders as well as Marketplace transactions
85 Q3 2014 Home & Living – Highlights Company Revenue Gross Profit EBITDA GMV Total Orders
Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014
EUR(m) +147% (m) +110% 56 46 15 (37)%
+124% 0.3 (34)% 9 22 (8) 23 Western 32%
Europe 40% 0.1 and Brazil (16)
(m) EUR(m)
+87% 50 47 N/A +107% 0.6 27 20 (33)% Europe, 0.3 Russia, CIS, Brazil 43% N/A N/A
(15)
Source: Company’s unaudited consolidated financial statements based on IFRS and company records 86 LPV Update Significant Uplift since IPO
87 Significant Uplift in LPV
LPV uplift
€3.4bn
+€0.8bn
€2.6bn at Rocket Internet IPO
88 Funding Transactions Since the Rocket Internet IPO
Proven Winners
(€m)
Funding received 110.0 45.0 15.9(3)
Rocket investment 100.0 + 30.1 + 0.1 44.0 10.4(3)
Total LPV 623.8(2) 249.5 814.8
Rocket LPV impact(1) +273.8 +44.0 +160.1
Rocket stake at IPO vs now (%) 37.1 / 51.7 44.9 / 49.7 49.5 / 49.9
Notes: (1) Impact on Rocket Share of LPV compared to Rocket Internet IPO on 2nd October 2014 (2) On a pre additional management participation basis (3) Includes €1.1m purchase of treasury shares 89 Funding Transactions Since the Rocket Internet IPO
Proven Winners
(€m)
Funding received 200.0 120.0 25.2
Rocket investment 15.3 0.5(3) 10.0(5)
Total LPV 957.8(2) 445.0 449.2
Rocket LPV impact(1) +93.3 +15.3(4) +33.9
Rocket stake at IPO vs now (%) 26.7 / 23.8 26.8 / 28.7 33.7 / 34.0 (5)
Notes (1) Impact on Rocket Share of LPV compared to Rocket Internet IPO on 2nd October 2014 (2) Equivalent to €1bn considering 100% of the Lazada business (3) Acquisition of secondary shares (amount paid for together Jumia and Zanui shares) (4) Represents only the increase in the share-weighted LPV for Jumia held via AEH New Africa eCommerce I (formerly BGN Brillant Services Bigfoot II). The additional stake of Rocket Internet of 20.6% held via Africa Internet Group is not included (5) Includes €9.6m Rocket Internet secondary purchase of shares in Westwing SPV. Post transaction, Westwing SPV is 100% owned by Rocket Internet (pre transaction: 92.0%) 90 Funding Transactions Since the Rocket Internet IPO
Emerging Stars
(€m)
Funding received 25.8 10.0 6.0
Rocket investment 5.0 10.0 1.0
Total LPV 92.3 140.0 39.0
Rocket LPV impact(1) +24.5 +17.4 +1.0
Rocket stake at IPO vs now (%) 59.8 / 39.6 10.0 / 16.4 44.7 / 40.4
Notes: (1) Impact on Rocket Share of LPV compared to Rocket Internet IPO on 2nd October 2014
91 Funding Transactions Since the Rocket Internet IPO
Concepts
(€m)
Funding received 5.0 1.0 3.2
Rocket investment 0.5 N/A 0.8
Total LPV 20.0 21.0 18.2
Rocket LPV impact(1) 15.5 +20.0 +15.8
Rocket stake at IPO vs now (%) 100.0 / 77.5 100.0 / 95.2 100.0 / 86.3
Notes: (1) Impact on Rocket Share of LPV compared to Rocket Internet IPO on 2nd October 2014
92 Funding Transactions Since the Rocket Internet IPO
Concepts
(€m)
Funding received 1.5 5.0 2.0
Rocket investment N/A N/A N/A
Total LPV 16.5 14.6 20.0
Rocket LPV impact(1) +15.0 +9.6 +18.0
Rocket stake at IPO vs now (%) 100.0 / 90.9 100.0 / 65.9 100.0 / 90.0
Notes: (1) Impact on Rocket Share of LPV compared to Rocket Internet IPO on 2nd October 2014
93 LPV Uplift Across all Rocket Categories
€bn (2) 3.4 (1) 0.2 0.2 0.6 +€0.8bn
0.3 0.1 2.0
foodpanda €80m move
Proven Emerging Concepts Regional Strategic Other Total LPV Winners Stars Groups Participations Investments
Increase in LPV Decrease in LPV
Notes: (1) Various capital increases (2) Capital increase at Videdressing and mixture of sell-down and mark to market at Care.com
94 Creating Great Companies Systematically
Rocket Internet has invested in 6 of the world’s top 15 consumer ”Unicorns” outside of the US and China
Years before reaching Company Sector Country $1bn valuation Skype Communication Sweden 2 Zalando Fashion Ecommerce Germany 3 Lazada Horizontal Ecommerce Singapore 3 Mobli Communication Israel 3 Supercell Entertainment Finland 3 Global Fashion Group Fashion Ecommerce Emerging Markets 4 Coupang Ecommerce Korea 4 DeliveryHero Food Delivery Germany 4 Gree Entertainment Japan 4 Olacabs Taxi Booking India 4 Snapdeal Horizontal Ecommerce India 4 Wonga Financial Services UK 4 Home24 Home & Living Ecommerce Germany 5 Rocket Internet Ecommerce Germany 5 Colopl Entertainment Japan 5
Source: Selection on the basis of Forbes List using geographic and industry criteria; omissions have been added Note: Also includes past investments; only top 15 unicorns shown, ie those to reach $1bn fastest
95 Build-out Path to Majority in Proven Winners
Proven Winners Milestones Achieved
Global Fashion Group
96 Key Strategic Investments in the Food & Groceries Sector
Rocket Internet stake Consideration Transaction structure post transaction Primary / €496m c.30% Secondary
Undisclosed 100% Secondary
Undisclosed 100% Secondary
Primary / €130m 52% Secondary
97 Rocket Internet Set out Clear Objectives at IPO...
Focus on significant market opportunities
Build global leaders
Increase ownership in Proven Winners
Continued value creation
Launch new business models
Continued build-out of Rocket Platform
98 … and Delivered on all of them
Focus on significant Fashion Global Fashion Group market opportunities Home & Living General Merchandise Online Travel Food & Groceries
Build global leaders Global Fashion Group Global Online Takeaway Group HelloFresh
Increase ownership in Significant milestones achieved on path to control Proven Winners
Continued value creation Significant increase in LPV by c.€0.8bn since IPO
Launch new business models
Continued build-out of Headcount increased to ~400 employees Rocket Platform Hiring of 60+ IT engineers in H2 2014 Creation of Philippines Internet Group in partnership with PLDT 99 The Leading Global Internet Platform Outside the US and China
100