Southeast Asia B2C E-Commerce Market 2021 By

Secondary Market Research  The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for reported data. As a result, companies gain a precise and unbiased impression of the market situation.  Cross referencing of data is conducted in order to ensure validity and reliability.  The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several sources. If this is the case, all sources are mentioned on the chart.  The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart. Definitions  The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact definition used by the source (if available) is included at the bottom of the chart. Chart Types  Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple answers were possible, which is noted at the bottom of the chart. Report Structure  Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents, management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures. Notes and Currency Values  If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.  When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR values are also provided in brackets. The conversions are made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used.

4 METHODOLOGY OF THE CURRENT REPORT

Report Coverage  This report covers the B2C E-Commerce market in Southeast Asia. The following countries were included: Indonesia, Vietnam, Malaysia, Thailand, Singapore and the Philippines. A broad definition of retail E-Commerce used by some original sources cited in this report might include both B2C and C2C E-Commerce.  This report contains relevant international comparisons, information about market trends, B2C E-Commerce sales and shares, Internet users and shoppers, products, payment methods and players. Not all types of information were included for each country, due to varying data availability.

Report Structure  The report starts with an overview of the regional B2C E-Commerce market compared to other countries in the region in terms of criteria relevant to B2C E- Commerce, such as B2C E-Commerce sales. The rest of the report is divided into country chapters and presented in the descending order of retail E- Commerce sales.  Each country description starts with an overview of the market, highlighting the overall B2C E-Commerce development in that country. Depending on data availability, overview charts include also information about the major E-Commerce players, the number of users, sales volume, number of monthly visits, leading product categories, share of sales, Internet economy and consumers’ buying behavior. Not all the mentioned types of information are available for each of the countries covered.

5 DEFINITIONS

The following expressions and definitions are used in this report*: An infectious disease triggered by an intense acute respiratory sickness. COVID-19 was first identified at the end . COVID-19 / CORONAVIRUS of 2019 in Wuhan, China, and spread worldwide, becoming known as the coronavirus pandemic.

the sale of products (and services) through electronic transactions via the Internet from businesses to consumers . B2C E-COMMERCE (B2C). A broader definition of retail E-Commerce applied by some sources also includes consumer-to-consumer (C2C) sales.

the total sales generated either on the E-Commerce market in a certain country or region, or the total sales . E-COMMERCE SALES generated through E-Commerce by a player on the market.

. ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.

M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic . M-COMMERCE transactions via mobile devices, such as mobile phones, tablets and smartphones.

the sale of goods (and services) directly to consumers in other countries, with orders delivered from the country . ONLINE TRAVEL where the foreign shop is based or from a central logistics facility, i.e. across the country’s borders. Transfer of money made over the Internet following a consumer’s payment command, includes payments for . ONLINE PAYMENT product and service purchased in B2C E-Commerce and M-Commerce. the sale of goods (and services) directly to consumers in other countries, with orders delivered from the country . CROSS-BORDER E-COMMERCE where the foreign shop is based or from a central logistics facility, i.e. across the country’s borders. the use of social media in E-Commerce transactions, where social networks and other social media platforms . SOCIAL COMMERCE assist the selling and buying of products and services online.

platforms where third-party merchants (B2C) or individuals (C2C) can sell their digital or physical products online . E-COMMERCE MARKETPLACE whereas the marketplace operator acts as an intermediary.

abbreviated as GMV, a total value of successfully completed transactions between buyers and sellers through a . GROSS MERCHANDISE VALUE C2C (customer-to-customer) exchange platform. Depending on the source, might include shipping costs.

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective charts 6 TABLE OF CONTENTS (1 OF 3)

1. Management Summary 2. Regional Overview • B2C E-Commerce Market Overview, February 2021 • Asia-Pacific’s Share of Global Retail E-Commerce Sales, in %, 2020e • Retail E-Commerce Sales Value, by Selected Regions, in USD billion, 2020e • Retail E-Commerce Sales Growth, by Region, by Selected Regions, and Year-on-Year Change, in %, 2020e • Percentage of Consumers, Who Purchase Online More in the Last Few Months, by Selected Countries, incl. Australia, India and Vietnam, in % of Respondents, 2020 • Share of Mobile Sales, in % of All Online Travel Sales, 2020 • Digital Travel Sales Value Per Capita, by Selected Countries, in USD, 2020 & 2025f • Percentage of New Online Consumers, by Geolocation, by Selected Countries, in % of Respondents, 2020

3. Indonesia • B2C E-Commerce Market Overview, February 2021 • B2C E-Commerce Transaction Value, in IDR trillion, 2017, 2018 & 2020e • E-Money Sales Value and Volume, in IDR trillion, in billions, 2019 & January - November 2020 • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f • E-Commerce Gross Merchandise Value, in USD billion, 2019 - 2020e & 2025f • Number of Sessions Performed on Financial Apps, in billions, June 2019 & June 2020 • Share of Preferred Payment Method For Shopping Online, in % Respondents, May 2020 • Top 10 E-Commerce Websites of Indonesia, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020 • Share of E-Wallets Usage, in % of Respondents, Q2 2020

4. Vietnam • B2C E-Commerce Market Overview, February 2021 • Value of B2C E-Commerce, in VND trillion, and Year-on-Year Change, in %, 2019 - 2024f

7 TABLE OF CONTENTS (2 OF 3)

4. Vietnam (Cont.) • Top 10 E-Commerce Websites of Vietnam, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020 • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

5. Malaysia • B2C E-Commerce Market Overview, February 2021 • B2C E-Commerce Market Value, in USD billion, 2020e & 2025f • Value of B2C E-Commerce, in MYR billion, 2019 - 2024f • Top 10 E-Commerce Websites of Malaysia, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020 • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f • Share of Transactions and Share of Transactions Value, by Payment Instrument, in % of Total Transactions, 2019 & 2024f

6. Thailand • B2C E-Commerce Market Overview, February 2021 • E-Commerce Value, in EUR billion, 2019 - 2020e • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f • Top 10 E-Commerce Websites of Thailand, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020

7. Singapore • B2C E-Commerce Market Overview, February 2021 • B2C E-Commerce Market Value, in SGD billion, 2019 & 2020e & 2024f • Top 10 E-Commerce Websites of Singapore, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020

8 TABLE OF CONTENTS (3 OF 3)

7. Singapore (Cont.) • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

8. The Philippines • B2C E-Commerce Market Overview, February 2021 • Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f • Top 10 E-Commerce Websites of The Philippines, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020

9 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

10 Management Summary (1 of 4) – Regional & Indonesia

Regional Overview

 Asia-Pacific is one of the most advanced regions in terms of B2C E-Commerce, which was estimated to hold 62.6% of share compared to other regions of the world. Its B2C E-Commerce sales value was estimated to reach almost USD 2.5 trillion in 2020, being the world’s largest B2C E-Commerce marketplace.

 With regard to online travel, the majority of transactions in the Asia-Pacific region were executed via a mobile device (62% of total online sales). Although online travel sales value in several countries of the region witnessed a decline from 2019 to 2020, growth is predicted to return by 2025. The highest online travel revenue value per capita in the region in 2020 was seen in Singapore, ranging from USD 400 to USD 600.

 In terms of B2C E-Commerce platforms, each country had its dominant player and based on the research, it can be said that Amazon, Alibaba, Shopee, Lazada are the four most popular ones. These platforms had the largest number of visits as of the COVID-19 outbreak, gained significant revenue value and a considerable number of users.

 Also, with the acceleration of online commerce, cross-border B2C E-Commerce gained momentum in the countries of Asia-Pacific. As most of the countries have favorable conditions for digital retail, the authorities of several nations imposed a value-added tax of 10-12% for foreign retailers to maintain sustainable business operations and create fair working conditions for both local and foreign merchants.

Indonesia  The Indonesian B2C E-Commerce market experienced growth of multiple sectors in 2020, with expected revenues of EUR 21 billion in 2020. Moreover, compared to November of the previous year, its electronic money sales value increased from EUR 7.11 billion to EUR 8.96 billion in November 2020. In addition, the Internet economy was projected to increase from USD 44 billion (EUR 38.7 billion) in 2020 to USD 124 billion (EUR 109 billion) in 2025.  Overall, the frequency of fintech application usage in Indonesia increased by 70% from 1.67 million in June 2019 to 2.83 billion in June 2020. Furthermore, the most visited B2C E-Commerce websites were Shopee (96.5 million), Tokopedia (85 million), Bukalapak (31.4 million, and Lazada (22.7 million) during the third quarter of 2020.

11 Management Summary (2 of 4) – Vietnam & Malaysia

Indonesia (Cont.)  Due to the rapid development of digital commerce in the country, foreign companies showed increased interest in doing business in Indonesia, therefore, the authorities decided to oblige retailers from abroad to register as a taxpayer and impose VAT of 10%.

Vietnam  B2C E-Commerce in Vietnam is rapidly developing, especially as of the COVID-19 outbreak. Its value was estimated to reach EUR 11 billion in 2020 and is projected to double to EUR 21.9 billion by 2024. Moreover, as per another source, the E-Commerce GMV was predicted to witness a fourfold increase from USD 7 billion (EUR 6.2 billion) in 2020 to USD 29 billion (EUR 25.5 billion) in 2025. Thus, the “new normal” has dramatically changed the retail market in the country. In addition, the demand for cashless payments also went up over the same period, leading to 13 million E-Wallet users by the end of the first quarter in 2020.  Vietnam’s most popular online shopping platform was Shopee with 62.7 million monthly visits, followed by The Gioi Di Dong (29.5 million) and Tiki (22.6 million). The top three E-Wallets appeared to be MoMoo, Moca and ZaloPay, the users of which overall constitute more than 90% of total E-Wallet subscribers. Malaysia  Malaysia is considered the largest B2C E-Commerce market in SEA, with its estimated value to reach EUR 6.3 billion in 2020 and surge to EUR 10.8 billion in 2024, at a compound annual growth rate of 14.3%. As in several other countries in the region, online travel sales value in Malaysia saw a decline by 59% from 2019 to 2020, however, online travel bookings are projected to increase by 37% (CAGR) from 2020 to 2025. Another source states that digital commerce GMV has been growing since 2019 from USD 3 billion (EUR 2.6 billion) to USD 6 billion (EUR 5.3 billion) in 2020 and is forecasted to rise to USD 13 billion (EUR 11.4 billion) in 2025.  Furthermore, the Malaysian authorities contribute to the development of digital commerce by financially assisting SMEs to transform digitally, expand their operations across the country and undergo technological training. In addition, in order not to lose the revenue from organizations abroad selling online in the country’s market, which has enhanced recently due to the pandemic, the government imposed a 10% VAT on all digital service providers in 2020.

12 Management Summary (3 of 4) – Thailand & Singapore

Thailand

 Thailand is considered to have one of the fastest developing B2C E-Commerce markets in Southeast Asia, with 35% year-on-year growth to EUR 6.2 billion in sales in 2020. Due to the enhanced adoption of internet and smartphone usage in the country, as per another source, its Internet economy is also predicted to see an annual rise in value by 21% to USD 53 billion (EUR 46.6 billion) in 2025, including E- Commerce GMV growing from expected USD 9 billion (EUR 7.9 billion) in 2020 to USD 24 billion (EUR 21.1 billion). The “online travel” sector, despite the 47% decrease during the period from 2019 to 2020, is forecasted to recover from sales of USD 4 billion (EUR 3.5 billion) in 2020 to USD 15 billion (EUR 13.2 billion) in 2025.  Because of the popularity of contactless shopping, digital commerce platforms gained a significant number of website visits during the third quarter in 2020, and the top-visited platforms turned out to be Shopee TH, Lazada TH, and Advice. In addition, Lazada took advantage of the situation and developed cross-border digital commerce by accepting new foreign merchants in Thailand and trying to enter markets abroad with local brands.  In order to maintain a smooth and stable workflow of online businesses, in June 2020, the Thai government imposed a 7% VAT for operations of foreign retailers.

Singapore  The Singaporean B2C E-Commerce market has been rapidly developing for the last several years, according to some sources and its value was predicted to be EUR 6.0 billion in 2020 and rise to approximately EUR 8.9 billion in 2024. With the coronavirus confinement, adoption of online shopping surged, leading to an overall website visits increase of 23%. The list of top online shopping platforms in Q3 of 2020, included Shopee, Lazada and Qoo10, with 11.1 million, 7.7 million and 6 million monthly visits, respectively.  Singaporean cross-border B2C E-Commerce has also gained momentum, valuing EUR 1.9 billion as of the COVID-19 outbreak, thus attracting online shopping platforms from abroad to introduce their businesses in the country. Besides, Singaporean consumers contributed significantly to shopping overseas online, mostly in Chinese, US and South Korean marketplaces in 2020.

13 Management Summary (4 of 4) – The Philippines

The Philippines  The Internet economy in the Philippines was projected to witness a 30% growth from USD 7.5 billion (EUR 6.6 billion)in 2020 to USD 28 billion (EUR 24.6 billion) in 2025. At the same time, the estimated increase in E-commerce gross merchandise value is by 31%, from USD 4 billion (EUR 3.5 billion) to USD 15 billion (EUR 13.2 billion).  Amid the COVID-19 pandemic, the top frequently visited B2C E-Commerce platforms in the Philippines are Shopee (35.6 million monthly visitors), Lazada (34.8 million visits).

 The pandemic led Philippine authorities to foment E-Wallets and microfinance by local banks. All in all, the goal is to switch 50% of retail operations to online and empower Filipinos with greater access to financial services.  Moreover, the Filipino government released a regulation that obliges all merchants selling online to register with the government agency to be able to keep track of sales and other operations. In addition, the authorities of the Philippines intend to introduce a 12% VAT on online service providers’ operations.

14 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

15 Amid COVID-19, despite the estimated smallest growth rate in B2C E-Commerce in 2020, APAC held the largest share in the world. Asia-Pacific: B2C E-Commerce Market Overview, February 2021  During the coronavirus outbreak in 2020, Asia-Pacific’s share of B2C E-Commerce sales were estimated to constitute 62.6% of global online retail sales, according to eMarketer in July 2020. Moreover, the region was expected to accumulate the highest digital commerce value among others in 2020, reaching USD 2.5 trillion (EUR 2.15 trillion), as per the same source in May 2020. During the early stage of the COVID-19 pandemic, the preliminary estimate for the annual growth rate in online sales in Asia-Pacific for 2020 was 15.5%, as eMarketer reported in May 2020.  In terms of the online travel sales segment in the region, most transactions were executed via mobile devices, constituting 62% of overall digital sales, as per Euromonitor International in November 2020. Furthermore, online travel sales value per capita is the highest in Singapore in 2020 ranging from USD 400 to USD 600, and in 2025 Singapore and Hong Kong are forecasted to remain leaders in the value per capita (USD 800 – USD 1400), as per Euromonitor International in November 2020.  Southeast Asia’s major B2C E-Commerce platform Lazada’s online shop RedMart, experienced a threefold increase in the average volume of weekly orders, as per ChinaDaily.com.cn in November 2020. Moreover, in November 2020, Lazada sold to over 40 million consumers on Singles Day, with sales having surpassed USD 100 million.  Additionally, Laz-Mall, an online shopping platform, as of the COVID-19 outbreak, had three-fold growth of the number of brands carried to over 18,000 international and local ones across Southeast Asia, according to Lazada Group cited by ChinaDaily.com.cn in November 2020. Also, several well-known department stores and malls, such as Metro and Robinsons in Singapore or the Siam Center in Thailand, also moved to digital commerce and introduced themselves on the Lazada platform.  As a result of the pandemic, the average online basket size across Southeast Asia grew by 23% year-on-year, to reach USD 28.5 per order, as per iPrice cited by ChinaDaily.com.cn in November 2020. The highest earnings were made in the Philippines and Singapore, with the increase by 57% and 51%, respectively.  Asia-Pacific consumers’ behavior has also considerably changed as of the start of the pandemic, namely, they stated in a recent survey of more than 15,000 respondents conducted by Criteo in 2020 that online shopping has become more frequent in the last several months in their lives, especially in Vietnam (76%), India (52%) and Australia (50%), according to Criteo in September 2020.  In addition, the majority of new online consumers live in non-metropolitan areas in Indonesia (56%), Malaysia (59%) and the Philippines (54%), whereas metropolitan zones saw increases of Thai (57%) and Vietnamese (74%) digital users, as per Kantar cited by Google, TEMASEK, Bain & Company in November 2020.  Amid the COVID-19 pandemic, due to the acceleration of digital commerce, the governments of several countries in the region introduced changes into cross-border B2C E-Commerce, namely, the imposition of a value-added tax ranging from 7 to 12%, according to Asia Perspective in August 2020. These nations came to such an idea in order to provide both local and foreign E-Commerce traders and service providers with fair and sustainable business operations. Furthermore, as per the same source, the authorities of the countries in the region also started losing the revenue to the alien companies, and institute the VAT to support local merchants. Singapore and Malaysia were the first countries to oblige foreign retailers to pay taxes. To date, these two nations and Indonesia have already this law operating, whereas Vietnam and the Philippines have the implementation planned for 2021. Source: eMarketer, July 2020; eMarketer, May 2020; Euromonitor International, November 2020; ChinaDaily.com.cn, November 2020; Lazada Group cited by ChinaDaily.com.cn, November 2020; KrAsia, November 2020; iPrice cited by ChinaDaily.com.cn, November 2020; Kantar cited by Google, TEMASEK, Bain & Company, November 2020; Asia Perspective, August 2020; Criteo, September 2020 16 Amid the coronavirus pandemic, the digital commerce of Asia-Pacific was estimated to constitute 62.6% of online sales globally in 2020. Global: Asia-Pacific’s Share of Global Retail B2C E-Commerce Sales, in %, 2020e

Other Regions 37.4%

Asia-Pacific 62.6%

Source: eMarketer, July 2020 17 APAC was expected to have the highest B2C E-Com. value of USD 2.45 tril. (EUR 2.15 tril.) worldwide in 2020 during the COVID-19 outbreak. Global: Retail E-Commerce Sales Value, by Selected Regions, in USD billion, 2020e

Asia-Pacific 2,448.3

North America 749.0

Western Europe 498.3

Central & Eastern Europe 92.9

Latin America 83.6

Middle East & Africa 41.6

0 500 1000 1500 2000 2500 3000

in USD billion

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.879916 Definition: retail E-Commerce includes products or services ordered using the Internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets, payments such as bill pay, taxes or money transfers, food services and drinking place sales, gambling and other vice goods sales Source: eMarketer, May 2020 18 Amid COVID-19, the annual growth rate of B2C E-Comm. sales in APAC was estimated to be the lowest (15.5%) among other regions in 2020. Global: Retail E-Commerce Sales Growth, by Region, by Selected Regions, and Year-on-Year Change, in %, 2020e

Central & Eastern Europe 21.5%

Middle East & Africa 19.8%

Latin America 19.4%

North America 18.1%

Western Europe 16.9%

Asia-Pacific 15.5%

0% 10% 20% 30% in % Year-on-Year Change

Definition: retail E-Commerce includes products or services ordered using the Internet via any device, regardless of the method of payment or fulfillment; excludes travel and event tickets, payments such as bill pay, taxes or money transfers, food services and drinking place sales, gambling and other vice goods sales Source: eMarketer, May 2020 19 76% of Vietnamese consumers opted for online shopping more in the last few months, compared to Australia (50%) and India (52%) in 2020. Asia-Pacific: Percentage of Consumers, Who Purchase Online More in the Last Few Months, by Selected Countries, incl. Australia, India and Vietnam, in % of Respondents, 2020

Vietnam 76%

India 52%

Australia 50%

0% 25% 50% 75% in % of Respondents

Survey: based on a survey of 15,000+ respondents, conducted in 2020 Source: Criteo, September 2020 20 Amid the pandemic, mobile sales in Asia-Pacific accounted for 62% of online travel sales in 2020. Asia-Pacific: Share of Mobile Sales, in % of All Online Travel Sales, 2020

All online travel sales 38%

Mobile sales 62%

Source: Euromonitor International, November 2020 21 Singapore was leading the Asia-Pacific region in online travel sales in 2020 and was forecasted to remain a leader through 2025. Asia-Pacific: Digital Travel Sales Value Per Capita, by Selected Countries, in USD, 2020 & 2025f

2020 2025f

USD 200 – USD 400 – USD 800 – > USD 200 USD 200 – USD 400 USD 400 – USD 600 > USD 200 USD 400 USD 800 USD 1,400 Malaysia Hong Kong, China Singapore Thailand China Taiwan Singapore China Taiwan n/a Hong Kong, Vietnam Malaysia Japan Thailand Japan n/a China

Vietnam South Korea n/a Philippines n/a South Korea n/a

Philippines n/a n/a Indonesia n/a n/a n/a Indonesia n/a n/a

India n/a n/a India n/a n/a n/a

Source: Euromonitor International, November 2020 22 As of 2020, most of the new online consumers in Vietnam (74%) lived in the metro area, while in the other select. countries mostly in non-metro. Southeast Asia: Percentage of New Online Consumers, by Geolocation, by Selected Countries, in % of Respondents, 2020

Metropolitan area 44% 41% 46% 57% 74%

Non-metropolitan area 56% 59% 54% 43% 26%

0% 20% 40% 60% 80% 100% in % of Respondents Indonesia Malaysia Philippines Thailand Vietnam

Note: percentages are based on respondent level within new/existing, rather than responses Survey: based on a survey of total new users: Indonesia n=564, Malaysia n=438, Vietnam n=593, Philippines n=465, Thailand n=378, and total existing users: Indonesia n=814, Malaysia n=605, Vietnam n=747, Philippines n=640, Thailand n=649, conducted from August 2020 to September 2020; question asked “Where do you live?“ Source: Kantar cited by Google, TEMASEK, Bain & Company, November, 2020 23 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

24 The B2C E-Com. market in Indonesia was projected to accelerate with the increase in E-Money transactions and Internet economy in 2020. Indonesia: B2C E-Commerce Market Overview, February 2021  The Indonesian B2C E-Commerce market is expected to accelerate amid the pandemic and reach EUR 21.2 billion in 2020, according to Bank Indonesia cited by Kontan.co.id in October 2020. Further, E-Money transactions value grew from EUR 7.11 billion in 2019 to EUR 9.03 billion in November 2020 and volume increase from 0.52 billion in 2019 to 4.19 billion in 2020 through November, as per Bank Indonesia in 2020. In addition, GMV of Internet economy in Indonesia is estimated to value USD 44 billion (EUR 38.7 billion) in 2020 and is predicted to grow by 23% to USD 124 billion (EUR 109 billion) in 2025, with E-Commerce leaping from estimated USD 32 billion (EUR 28.1 billion) in 2020 to forecasted USD 83 billion (EUR 72.9 billion) in 2025, as per Bain Analysis cited by Google, TEMASEK, Bain & Company in November 2020. Having said that, according to RedSeer in May 2020, GMV E-Commerce in Indonesia is estimated to witness a 50% Year-on-Year growth from USD 23 billion (EUR 20.2 billion) in 2019 to USD 35 billion (EUR 30.8 billion) in 2020, and is projected to reach USD 101 billion (EUR 88.7 billion) in 2025.  The digitalization of Indonesian conventional businesses has allowed big E-Commerce players, such as Gojek, Grab and Shopee, to contribute significantly into value creation for merchants and customers, as well as attracting new investors among global tech players. Furthermore, the usage frequency of financial applications in Indonesia saw a 70% surge from 1.67 billion in June 2019 to 2.83 billion in June 2020, as iPrice and App Annie study revealed in August 2020. Thus, amid the coronavirus pandemic, E-Wallets played a significant role among consumers for contactless payments execution.  During the pandemic, Shopee, Singapore based Sea Ltd.’s E-Commerce platform, accounted for the greatest share of the B2C E-Commerce market in Indonesia over the second quarter, as per iPrice cited by Forbes in October 2020. The runner-up company was Tokopedia, E- Commerce-centered company, and the third player was said to be Bukalapak, digital commerce platform. Over the same time period, Shopee witnessed a 130% increase in day-to-day average digital orders. Moreover, Shopee was the most monthly visited website (96.5 million times) among other platforms, followed by Tokopedia (85 million visits), Bukalapak, (31.4 million visits), and Lazada, a tech company focusing on E- Commerce (22.7 million visitors) in the third quarter of 2020, according to iPrice in November 2020.  In terms of online payment service providers, Gojek’s GoPay accounted for the largest share of 58%, followed by Ovo (29%), Dana (9%) and LinkAja (4%), in accordance with Ipsos Media cited by iPrice in August 2020. The battleground for the best E-Wallet was joined by Shopee’s ShopeePay, which along with other players provided consumers with numerous discounts and offered the opportunity of payment delay. Thus, in Indonesia, payment for over 45% of gross orders in Shopee was made via ShopeePay in July, as per Sea cited by Forbes in October 2020.  Furthermore, the government of Indonesia, for the sake of fair and favorable working environment of digital businesses, imposed a value-added tax for foreign companies that have “considerable economic presence” in the country, according to Asia Perspective in August 2020. As of June 2020, such platforms as Google, Netflix, Spotify and Amazon, have been obliged to pay a 10% VAT, with other similar platforms being added to the list of liable ones. Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 Source: Forbes, October 2020; Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020; iPrice and App Annie, August 2020; iPrice, November 2020; iPrice, August 2020; Bank Indonesia cited by Kontan.co.id, October 2020; Bank Indonesia, 2020; RedSeer, May 2020; Asia Perspective, August 2020 25 After the COVID-19 outbreak, Indonesian B2C E-Commerce sales value was expected to reach IDR 429 trillion (EUR 21 billion) in 2020. Indonesia: B2C E-Commerce Transaction Value, in IDR trillion, 2017, 2018 & 2020e

500 429.0

400

300

in IDR IDR in trillion 200

105.6 100 42.2

0 2017 2018 2020e

Note: the exchange rate used in the chart is the average rate for 12 months to December 2020: IDR 1 = EUR 0.000049 Source: Bank Indonesia cited by Kontan.co.id, October 2020 26 During COVID-19, the e-money transactions value grew to IDR 182.8 trillion (EUR 8.96 billion) in Indonesia. Indonesia: E-Money Sales Value, in IDR trillion, and Volume, in billions, 2019 & January - November 2020

E-Money transaction value E-Money transaction volume

5 4.19 182.8

200 4

145.2 3

100 billions in 2 in IDR IDR in trillion

1 0.52

0 0 2019 Jan-Nov 2020 2019 Jan-Nov 2020

Note: the exchange rate used in the action title is the average rate for 12 months to December 2020: IDR 1 = EUR 0.000049 Definition: Electronic Money (E-Money) is the value of money stored electronically at a media that can be moved for the purposes of payment transactions and / or transfer of funds. Source: Bank Indonesia, 2020 27 Indonesia’s Internet economy was predicted to reach USD 124 bil. (EUR 109 bil.) by 2025, with E-Commerce as the largest sector. Indonesia: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 2.0 21.0 32.0 83.0 +54% +21%

Online Travel 5.0 10.0 3.0 15.0 -68% +36%

Online Media 0.6 3.5 4.4 10.0 +24% +18%

Transport & Food 1.0 6.0 5.0 16.0 -18% +28%

Total 8.0 40.0 44.0 124.0 +11% +23%

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 E-Commerce does not include social commerce due to lack of reliable data Definition: GMV – gross merchandise value E-Commerce includes Marketplaces, Malls, Direct to Customer; Transport & Food includes Transport and Food Delivery; Online Travel includes Flights, Hotels, Vacation Rentals; Online Media includes Advertising, Gaming, Video on Demand, Music on Demand; Internet Economy includes all the above segments Source: Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020 28 Another source stated that Indonesian E-Commerce GMV was expected to grow by +23.7% CAGR to reach USD 101 bil. (EUR 88.7 bil.) in 2025. Indonesia: E-Commerce Gross Merchandise Value, in USD billion, 2019 - 2020e & 2025f

120

101 100

CAGR 60 +23.7%

in USD USD billion in 35 40

23 20

0 2019 2020e 2025f

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 Source: RedSeer, May 2020 29 The volume of sessions on finance apps in Indonesia increased by 70%, from 1.67 billion in June 2019 to 2.83 billion in June 2020. Indonesia: Number of Sessions Performed on Financial Apps, in billions, June 2019 & June 2020

2.83

1.67 in billions in 2 +70%

0 June 2019 June 2020

Note: data is based on the sessions by Android users only, which represents 92% of smartphone users in Indonesia, according to StatCounter cited by iPrice in August 2020 Source: iPrice, August 2020 30 E-Wallet payment was the second preferred method of Indonesian consumers, accounting for 26% of all payment means in 2020. Indonesia: Share of Preferred Payment Method For Shopping Online, in % Respondents, May 2020 Credit card Debit card 2% 3% Offline payment 14% Bank transfer 30%

Cash on delivery 25%

E-Wallet/E-Money 26%

Note: iPrice and Jakpat surveyed Jakpat platform, using 9 questions with multiple choice answers to analyze Indonesian online shopping behavior during Ramadhan 2020 Survey: based on a survey of 1000 Muslim respondents, conducted in May 2020 Source: iPrice, August 2020 31 Shopee was the most popular online shopping platform in Indonesia, during COVID-19, with the monthly web visits of 96.5 mil. in Q3 2020. Indonesia: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020 Monthly AppStore PlayStore Number of Merchant Twitter Instagram Facebook web visits rank rank employees

Shopee 96,532,300 1 1 486,100 5,965,200 18,870,500 7,000

Tokopedia 84,997,100 2 4 611,900 2,120,700 6,385,100 4,300

Bukalapak 31,409,200 4 5 193,800 1,123,600 2,501,900 2,300

Lazada 22,674,700 3 3 398,300 2,327,200 30,072,000 3,500

Blibli 18,695,000 5 6 504,500 1,334,500 8,568,100 1,900

JD ID 4,785,800 8 7 32,100 492,000 781,300 1,100

Orami 3,071,900 27 n/a 6,000 n/a 352,800 183

Bhinneka 2,803,800 20 20 6,900 41,800 1,051,400 605

Sociolla 1,986,700 7 2 3,200 907,500 10,900 392

Zalora 1,828,500 6 8 900 619,100 7,843,300 562

Note: the table ranks the top 10 E-Commerce players in Indonesia based on their average quarterly traffic, mobile application ranking, social media followers and number of staff the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all e-commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 32 Amid the pandemic, GoPay was the most preferred E-Wallet (58%) in Indonesia, compared to other market players in Q2 of 2020. Indonesia: Share of E-Wallets Usage, in % of Respondents, Q2 2020 LinkAja DANA 4% 9%

Ovo GoPay 29% 58%

Source: Ipsos Media cited by iPrice, August 2020 33 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

34 Vietnamese B2C E-Com. accelerated in 2020 with the increased number of E-Wallet users and a projected double growth in value by 2024. Vietnam: B2C E-Commerce Market Overview, February 2021  Vietnam also has a developing B2C E-Commerce market with the expectations of digital sales value doubling from EUR 11 billion in 2020 to EUR 21.9 billion in 2024, as per GlobalData in December 2020. The Internet economy of the country has been rapidly evolving amid the pandemic, with 34% annualized growth rate forecasts in the E-Commerce GMV section from USD 7 billion (EUR 6.2 billion) in 2020 to USD 29 billion (EUR 25.5 billion) in 2025, according to Bain analysis cited by Google, TEMASEK, Bain & Company in November 2020. Furthermore, the online travel sector is also predicted to rise by 25% Year-on-Year from USD 3 billion (EUR 2.6 billion) in 2020 to USD 9 billion (EUR 7.9 billion) in 2025, as the same source states. To date, 70% of E-Commerce sales occur in two big cities of Vietnam – Hanoi and Ho Chi Minh City, according to Deloitte in July 2020.  Due to the pandemic, the demand in contactless payments has increased considerably in the country; by the end of Q1 2020, there were 13 million of E-Wallet users, as per Vietnam Insider in August 2020. Furthermore, the State Bank of Vietnam’s data cited by Vietnam Insider reveals in August 2020, that from January 2020 to April 2020, a total of 225.6 million sales were executed via E-Wallets with a value of VND 77.7 trillion (EUR 2.8 billion). In terms of online payments service providers, Vietnam has three dominating platforms as of the COVID-19 outbreak: MoMo, Moca and ZaloPay, as per Tech Wire Asia in October 2020, which made up over 90% of total E-Wallet users. Momo, is one of the major ones with 20 million users nationwide and serving 21% of the 100 million Vietnamese population, as the same source stated. Moca saw an increase of the user volume by 22.5%, as per Vietnam Insider in August 2020.  During COVID-19, the largest user traffic in Vietnam was witnessed on the Shopee VN website among other top 10 E-Commerce platforms, with 62.7 million monthly visits, as per iPrice Insights in November 2020. In addition, on both AppStore and PlayStore, it was ranked as the top shopping app in Vietnam, as the same source states.  Moreover, the authorities of the country are planning to significantly enhance and develop the nation’s digital commerce market, as Tech Wire Asia reported in June 2020. They created a plan that will contribute to the sector’s growth by, facilitating the export of Vietnamese goods through cross- border B2C E-Commerce and stimulating sustainable and competitive business operating conditions. Eventually, the national government aims to make non-cash digital payments account for half of the B2C E-Commerce sales by 2025, as per the same source.  Amid the COVID-19 pandemic, digital services offered by local and foreign organizations are sought by Vietnamese customers. In order to provide both national and alien E-Commerce platforms with equal working environment, the National Assembly in Vietnam has introduced a new law to collect a VAT of 10% from cross border E-Commerce retailers, according to Asia Perspective in August 2020. Moreover, foreign sellers are required to register with the national tax authority in order to pay and declare tax. Although the enforcement of the law was to begin in July 2020, the operation was postponed to January 1st, 2021 so that the government could work out the mechanism and accurate guidance, including the possibility for traders and service providers to undergo the whole process online, as per the same source.

Note: the exchange rate applied in the action title and chart is the average rate for 12 months to December 2020: VND 1 = EUR 0.00003620845 and USD 1 = EUR 0.878687 Source: GlobalData, December 2020; Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020; Asia Perspective, August 2020; Vietnam Insider, August 2020; Tech Wire Asia, October 2020; Tech Wire Asia, June 2020; Deloitte, July 2020 35 Vietnamese B2C E-Commerce sales were expected to double from VND 303.6 tril. (EUR 11 bil.) in 2020 to VND 604.6 tril. (EUR 21.9 bil.) in 2024. Vietnam: Value of B2C E-Commerce, in VND trillion, and Year-on-Year Change, in %, 2019 - 2024f

700 35% 30.3% 604.6

600 30% 24.4% 533.4 28.7% 500 25% 457.6

377.7 Year Change Year

400 20% - 21.2%

303.6 on - 300 15% 16.6% 233.0

in VND VND trillion in 13.4%

200 10% Year % in

100 5%

0 0% 2019 2020e 2021f 2022f 2023f 2024f

B2C E-Commerce Value in % Year-on-Year Change

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: VND 1 = EUR 0.00003620845 Source: GlobalData, December 2020 36 Vietnamese website Shopee VN had the highest number of website monthly visits, 62.7 million, in Q3 2020. Vietnam: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020 Monthly web PlayStore Merchant AppStore rank YouTube Instagram Facebook visits rank

Shopee VN 62,702,800 1 1 314,000 183,200 18,870,500

The Gioi Di Dong 29,480,400 9 7 750,000 2,400 3,568,000

Tiki 22,563,600 3 4 387,000 141,400 2,940,200

Lazada VN 20,155,700 2 2 213,000 91,900 30,072,300

Dien May Xanh 16,145,500 8 8 503,000 n/a 1,649,800

Sendo 14,051,800 4 3 141,000 18,900 2,904,000

FPT Shop 6,890,000 n/a 10 227,000 19,300 2,498,200

Dien May Cho Lon 5,505,800 17 13 100 2,900 664,000

CellphoneS 5,313,100 n/a n/a 2,730,000 63,400 656,700

Hoang Ha Mobile 4,327,333 n/a n/a 76,500 10,100 672,200

Note: the table ranks the top 10 E-Commerce players in Vietnam based on their average quarterly traffic, mobile application ranking, social media followers and number of staff. the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all E-Commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 37 GMV of Vietnamese E-Commerce was predicted to rise by 34% from USD 7 bil. (EUR 6.2 bil.) in 2020 to USD 29 bil. (EUR 25.5 bil.) in 2025. Vietnam: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 0.4 5.0 7.0 29.0 +46% +34%

Online Travel 2.0 4.0 3.0 9.0 -28% +25%

Online Media 0.6 2.8 3.3 7.0 +18% +15%

Transport & Food 0.2 1.1 1.6 7.0 +50% +34%

Total 3.0 12.0 14.0 52.0 +16% +19%

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

39 Despite the projected decline in the growth rate of the Malaysian B2C E-Comm., the value was forecasted to increase by over 50% in 2024. Malaysia: B2C E-Commerce Market Overview, February 2021  The COVID-19 pandemic has changed the retail market in Malaysia by prompting consumers to choose online transactions over offline ones. Although the country’s B2C E-Commerce market value was estimated to be MYR 30.2 billion (EUR 6.3 billion) in 2020 and reach MYR 51.6 billion (EUR 10.8 billion) by 2024, the growth rate was forecasted to decline steadily from 24.8% in 2020 to 10.5% in 2024, according to GlobalData in September 2020. The Internet economy in the country is predicted to rise to USD 30 billion (EUR 26.4 billion) in 2025, with E-Commerce GMV increasing by 17% CAGR from USD 6 billion (EUR 5.3 billion) in 2020 to USD 13 billion (EUR 11.4 billion) in 2025, according to Bain Analysis cited by Google, TEMASEK, Bain & Company in November 2020.

 The most frequently visited platforms in Q3 2020, according to iPrice Insights in November 2020, were Shopee (37.94 million), Lazada (13.81 million), PG Mall (4.54 million), Zalora (1.10 million), and eBay (0.63 million), as per iPrice Insights in November 2020. Shopee Malaysia collaborated with Revenue Group Bhd, a non-cash payment solutions provider, to enhance Shopee’s mobile wallet – ShopeePay – usage in the country, according to The Star in August 2020. The E-Wallet can now be accepted at Revenue Group’s 35,000 retail spots. Furthermore, Shopee’s organized campaign 11.11 Big Sale in 2020 brought significant revenues to small and medium Malaysian companies that operate on the digital commerce platform, with the average sales reaching MYR 55,000 (EUR 11,485). Meanwhile, Lazada is also popular among Malaysian consumers: during the 11.11 one-day shopping sale, some of its merchants recorded sales of more than MYR 1 million (EUR 0.21 million), as per New Straits Times in November 2020.

 Moreover, the Malaysian government strives to assist businesses to transform their operations online. The help includes a funding of MYR 140 million (EUR 29.2 million) to boost digital commerce adoption among small retailers, facilitate in expanding their operations nationwide and conduct technological training, as Malay Mall reported in June 2020. Further, the authorities allocated MYR 700 million (EUR 146.2 million) for loans and grants to financially support SMEs. This means that MYR 100 million (EUR 20.9 million) was supposed to be provided in cooperation with telecommunication companies, MYR 500 million (EUR 104.4 million) of soft loans for small and medium-sized enterprises’ digital transformation and MYR 100 million assigned for smart automation initiatives, according to the same source.

 Amid COVID-19, as a result of digital commerce acceleration, the government of Malaysia started losing the revenue from foreign companies operating in the local market. Therefore, it decided to introduce a new law that would oblige alien E-Commerce platforms to pay a value-added tax of 10%, according to Asia Perspective in August 2020. Malaysia was one of the first countries to introduce this regulation in Southeast Asia, as per the same source. Note: the exchange rate applied in the action title and the chart is the average rate for 12 months to December 2020: MYR 1 = EUR 0.208822 and USD 1 = EUR 0.878687 Source: GlobalData, September 2020; iPrice Insights, November 2020; Asia Perspective, August 2020; New Straits Times, November 2020; The Star, August 2020; Google, TEMASEK, Bain & Company, November 2020; Malay Mall, June 2020 40 The Malaysian B2C E-Comm. market value was estimated to hit USD 4.5 bil. (EUR 4.0 bil.) in 2020 and to grow to USD 9.7 bil. (EUR 8.5) by 2025. Malaysia: B2C E-Commerce Market Value, in USD billion, 2020e & 2025f

9.7 10

CAGR 6 +16.7%

4.5 in USD USD billion in 4

0 2020e 2025f

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 Definition: the sale of physical goods via a digital channel to a private end user (B2C). Incorporated in this definition are purchases via desktop computer (including notebooks and laptops) as well as purchases via mobile devices such as smartphones and tablets. The following are not included in the E-Commerce market: digitally distributed services, digital media downloads or streams, digitally distributed goods in B2B markets nor digital purchase or resale of used, defective or repaired goods. Source: Statista, October 2020 41 Despite an expected increase of the B2C E-Commerce growth rate in Malaysia to 24.8% in 2020, it was projected to drop to 19.5% in 2021. Malaysia: Value of B2C E-Commerce, in MYR billion, 2019 - 2024f

60 60%

51.6 46.7 50%

41.7 40 40%

36.1 Year Change Year

30.2 - on

30% -

24.2 MYR MYR billion

in in 20 24.8% 20%

22.8% Year % in 19.5% 15.5% 10% 12.0% 10.5%

0 0% 2019 2020e 2021f 2022f 2023f 2024f

B2C E-Commerce Value in % Year-on-Year Change

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: MYR 1 = EUR 0.208822 Source: GlobalData, September 2020 42 In Q3 2020, the top 2 E-Commerce websites in Malaysia were Shopee and Lazada with 38.3 mil. and 16.1 mil. visits a month, respectively. Malaysia: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020

Monthly Web AppStore PlayStore Number of Merchant Twitter Instagram Facebook Visits Rank Rank Employees

Shopee 37,943,800 1 1 14,700 827,800 18,870,500 1,100

Lazada 13,814,900 2 2 40,900 694,500 30,072,200 626

PG Mall 4,540,800 15 n/a n/a 33,100 8000 70

Zalora 1,008,100 3 5 200 405,400 7,843,300 378

eBay 633,900 7 7 200 1,900 426,500 82

Lelong 586,500 12 9 800 8,600 408,200 52

GoShop 575,900 5 3 12,400 146,300 606,300 46

Hermo 254,000 9 10 100 188,600 274,700 35

Sephora 240,000 6 6 100 500,300 19,211,100 157

ezbuy 219,500 8 8 n/a n/a 783,900 31

Note: the table ranks the top 10 E-Commerce players in Malaysia based on their average quarterly traffic, mobile application ranking, social media followers and number of staff the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all E-Commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 43 GMV of E-Commerce in Malaysia was predicted to rise to USD 13 billion (EUR 11.4 billion) in 2025 from USD 6 billion (EUR 5.3 billion) in 2020. Malaysia: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 1.0 3.0 6.0 13.0 +87% +17%

Online Travel 3.0 4.7 1.9 9.0 -59% +37%

Online Media 0.6 1.8 2.3 4.0 +24% +18%

Transport & Food 0.3 0.9 1.1 3.0 +19% +26%

Total 5.0 10.7 11.4 30.0 +6% +21%

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 E-Commerce does not include social commerce due to lack of reliable data Definition: GMV – gross merchandise value E-Commerce includes Marketplaces, Malls, Direct to Customer; Transport & Food includes Transport and Food Delivery; Online Travel includes Flights, Hotels, Vacation Rentals; Online Media includes Advertising, Gaming, Video on Demand, Music on Demand; Internet Economy includes all the above segments Source: Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020 44 Amid COVID-19, electronic transactions were forecasted to constitute about one-quarter and their value over 90% of total payments by 2024. Malaysia: Share of Transactions and Share of Transactions Value, by Payment Instrument, in % of Total Transactions, 2019 & 2024f Transactions Transactions Value

100% 4.2% 100% 12.0% 2.3% 26.0%

80% 80%

60% Immediate 60% Immediate payments 85.9% 91.3% payments 88.0% 69.9% Electronic Electronic 40% payments 40% payments Paper-based Total of % in Paper-based in % of Total of % in payments payments 20% 20%

14.1% 6.2% 0% 0% 2019 2024f 2019 2024f

Definition: immediate payments are faster payments and real-time payments; electronic payments are those, which require usage of software solutions. Source: ACI and GlobalData, May 2020 45 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

46 B2C E-Commerce in Thailand was projected to maintain the stable growth caused by the Internet and mobile phone acceleration. Thailand: B2C E-Commerce Market Overview, February 2021  The Thai B2C E-Commerce market value was estimated to grow by 35% y-o-y to EUR 6.2 billion in 2020, as per Bangkok Post in May 2020. However, as per another source GlobalData in August 2020, digital commerce in Thailand, being a highly developed, experienced a compound annual growth rate of 12.2% between 2016 and 2020 and was estimated to reach THB 1.1 trillion (EUR 30.8 billion) in 2020. This is due to the acceleration of Internet and mobile phone penetration, emerging customer confidence in digital payments and the ongoing COVID-19 restrictions, as per the same source. In addition, these all lead to the adaptation to a “new reality” in the country, namely, electronic shopping. The B2C E-Commerce transactions were expected to increase in value at 14.8% rate in 2020, according to GlobalData in August 2020.  The Internet economy of Thailand is expected to continue developing in the near future, namely, E-Commerce GMV is expected to surge from USD 9 billion (EUR 7.9 billion) in 2020 to USD 24 billion (EUR 21.1 billion) in 2025, a 21% increase. Another source, Google, TEMASEK, Bain & Company in November reported a 81% growth from 2019 to 2020.  With the enhancement of digital shopping in Thailand, the following E-Commerce websites were highly sought in Q3 2020: Shopee TH (44.7 million visits), Lazada TH (34.8 million visits), Advice (2.1 million visits) and JD Central, Central Online, Powerbuy and others (the number of visits ranging from 1 million to 1.8 million), according to iPrice Insights in November 2020.  Lazada, one of the giant E-Commerce players in Thailand, was expected to have its revenue increase to THB 10 billion (EUR 280.4 million), according to Bangkok Post in October 2020. Furthermore, its GMV was estimated to reach THB 100 billion (EUR 2,804.2 million), as per the same source. In addition, Lazada was aiming to develop cross-border digital commerce introducing foreign brands in Thailand with ameliorated logistics services and a greater variety of products, as Bangkok Post reported in December 2020. Lazada also plans to present Thai products for buyers abroad and boost the quantity of Thai brands through its parent company Alibaba’s Tmall Global that allows sale of goods to individuals in China, according to the same source. Because the pandemic limited the opportunities to travel internationally, Lazada was aiming to bring the world to Thai consumers.  Due to the increase of digital products usage in Thailand, the national authorities approved an imposition a 7% VAT on foreign E- Commerce platforms’ services in June 2020, as Asia Perspective revealed in August 2020. The online services include streaming, advertising on social media, online shopping and others. Moreover, the government expects to collect THB 3 billion (EUR 100 million) public income every year, as per the same source.

Note: the exchange rate applied in the chart is the average rate for 12 months to December 2020: THB 1 = EUR 0.028042 Source: Bangkok Post, May 2020; iPrice Insights, November 2020; Asia Perspective, August 2020; Google, TEMASEK, Bain & Company, November 2020; Bangkok Post, October 2020; Bangkok Post, December 2020; GlobalData, August 2020 47 E-Commerce market value in Thailand was expected to increase by 35% y-o-y from EUR 4.6 billion in 2019 to EUR 6.2 billion in 2020. Thailand: E-Commerce Value, in EUR billion, 2019 - 2020e

6.2 6

4.6

+35%

4 in EUR EUR billion in

0 2019 2020e

Note: data about E-Commerce market value implies B2C and C2C, excluding B2B engagement Source: Bangkok Post, May 2020 48 Thai E-Com. GMV value was forecasted to rise by 21% from USD 9 bil. (EUR 7.9 bil.) in 2020 to USD 24 bil. (EUR 21.1 bil.) in 2025. Thailand: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 1.0 5.0 9.0 24.0 +81% +21%

Online Travel 3.0 7.0 4.0 15.0 -47% +31%

Online Media 1.0 3.0 4.0 7.0 +20% +15%

Transport & Food 0.4 1.3 1.1 7.0 -12% +45%

Total 6.0 16.0 18.0 53.0 +7% +25%

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 E-Commerce does not include social commerce due to lack of reliable data Definition: GMV – gross merchandise value E-Commerce includes Marketplaces, Malls, Direct to Customer; Transport & Food includes Transport and Food Delivery; Online Travel includes Flights, Hotels, Vacation Rentals; Online Media includes Advertising, Gaming, Video on Demand, Music on Demand; Internet Economy includes all the above segments Source: Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020 49 Shopee TH (44.7 mil. visits) and Lazada TH (34.8 mil. visits) were the most monthly visited E-Commerce platforms in Q3 2020 in Thailand. Thailand: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020

Monthly Web PlayStore Merchant AppStore Rank Line Instagram Facebook Visits Rank

Shopee TH 44,710,500 1 1 10,398,200 510,100 18,870,600

Lazada TH 34,779,700 2 2 22,370,500 398,900 3,007,300

Advice 2,095,900 n/a n/a 123,300 8,400 462,400

JD Central 1,827,100 3 3 3,640,200 45,200 327,800

Central Online 1,771,500 9 10 6,763,000 169,600 1,156,800

Powerbuy 1,724,800 n/a n/a 11,364,400 33,200 1,108,300

HomePro 1,449,200 n/a n/a 24,074,200 32,600 1,184,000

JIB 1,364,000 12 11 89,800 2,000 437,100

Chilindo 1,196,000 4 4 359,800 108,400 6,917,300

ShopAt24 1,010,600 8 7 11,604,300 9,700 704,100

Note: the table ranks top 10 E-Commerce players in Thailand based on their average quarterly traffic, mobile application ranking, social media followers and number of staff the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all e-commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 50 1. Management Summary 10 – 14

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

51 B2C E-Commerce market size in Singapore witnessed a continuous increase throughout the year 2020 amid the pandemic. Singapore: B2C E-Commerce Market Overview, February 2021

 Singapore has a highly developed B2C E-Commerce market, with the projected growth from EUR 6.0 billion in 2020 to about EUR 8.9 billion in 2024, as GlobalData revealed in June 2020.  Furthermore, E-Commerce GMV in Singapore was predicted to double from USD 4 billion (EUR 3.5 billion) in 2020 to USD 8 billion (EUR 7 billion) in 2025, a +16% CAGR, according to Bain Analysis cited by Google, TEMASEK, Bain & Company in November 2020.  In addition, despite the declining value of Online Travel GMV from USD 6 billion in 2019 to USD 2 billion (EUR 1.8 billion) in 2020, it was forecasted to recover and increase again to USD 7 billion (EUR 6.2 billion) by 2025, increasing at a compound annual growth rate of +31%.  As of the coronavirus outbreak, consumers mainly shifted to contactless shopping and preferred online over offline stores. Therefore, E-Commerce platforms have gained a high popularity among customers with a 23% increase in overall website visits. The most visited websites in Q3 2020, according to iPrice Insights in November 2020, were Shopee (11.1 million visits), Lazada (7.7 million) and Qoo10 (6 million visits). E-Commerce giant Lazada experienced a four-fold surge in online grocery sales in Singapore as of April 2020, as per CNBC in June 2020. The organization holds 23% of market share in the country, as per iPrice in August 2020.  Moreover, as per iPrice Group cited by The Asean Post in September 2020, USD 83 was the average amount spent per person in Singaporean B2C E-Commerce during the period from January 2020 to June 2020, whereas the average shopping cart value grew by 51% in comparison to the same period in 2019.  Enterprise Singapore (ESG) and the Singapore Standards Council (SSC) released the national standard Technical Reference 76 (TR 76)* on regulations for digital commerce sales in order to provide solid online presence for SMEs in the developing B2C E-Commerce market, according to SG Press Centre in June 2020. This guideline comprises end-to-end scope of electronic transactions process, starting from pre-purchase operations (browsing and selection), to purchasing and paying, and post-purchase operations, such as fulfilment, delivery, orders tracking, refunds and others. These rules facilitate E-Commerce processes for business and provide clear and accurate message to their customers, as the same source states.  In order to create a fair and sustainable working environment for local and international E-Commerce-centered companies, the government of Singapore has enforced a VAT, as per Asia Perspective in August 2020. In fact, Singapore was one of the first countries in Southeast Asia to implement this tax on electronic services offered by non-residents to Singaporeans.

Note: the exchange rate used in the chart is the average rate for 12 months to December 2020: SGD 1 = EUR 0.635778 *A TR is a provisional standard that is developed to address urgent industry demand and issued for industry trials for a period of time. Source: GlobalData, June 2020; iPrice Insights, November 2020; Asia Perspective, August 2020; SG Press Centre, June 2020; iPrice Group cited by The Asean Post, September 2020; CNBC; June 2020; Bain Analysis cited by Google, TEMASEK, Bain & Company 52 Online sales value in Singapore was expected to grow from SGD 9.5 bil. (EUR 6.0 bil.) in 2020 to about SGD 14 bil. (EUR 8.9 bil.) in 2024. Singapore: B2C E-Commerce Market Value, in SGD billion, 2019 & 2020e & 2024f

16 14.0 14

12 9.5

10 8.3 8

6 in SGD SGD in billion 4

0 2019 2020e 2024f

Note: the exchange rate used in the action title is the average rate for 11 months to November 2020: SGD 1 = EUR 0.63844 Source: GlobalData, June 2020 53 Shopee was the most visited online shopping website (11.1 mil. visits) and the highly rated one in Q3 2020 in Singapore. Singapore: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, Number of Followers on Social Media Platforms, and Number of Employees, Q3 2020 Monthly web PlayStore Number of Merchant AppStore rank Twitter Instagram Facebook visits rank Employees

Shopee 11,109,300 1 1 n/a 75,500 18,870,500 2.400

Lazada 7,741,400 2 2 3,100 50,300 30,072,300 1,100

Qoo10 6,016,200 4 5 4,000 26,900 389,800 181

Amazon 4,553,000 5 3 500 6,400 9,100 n/a

EZBuy 1,523,900 3 4 1,200 37,900 313,300 54

Courts Singapore 909,400 10 9 n/a 3,900 515,000 n/a

eBay 848,200 7 7 100 300 23,700 73

Zalora 814,600 6 6 n/a 114,900 7,843,300 284

Love, Bonito 332,900 n/a n/a 7,200 281,000 234,200 120

Forty Two 314,000 n/a n/a 400 25,400 58,600 22

Note: the table ranks Singapore's top 10 E-Commerce players based on their average quarterly traffic, mobile application ranking, social media followers and number of staff the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all E-Commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 54 Internet economy in Singapore was predicted to reach USD 22 bil. (EUR 19.3 bil.) in 2025, with E-Commerce contributing USD 8 bil. (EUR 7 bil.). Singapore: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 1.0 2.0 4.0 8.0 +87% +16%

Online Travel 4.0 6.0 2.0 7.0 -70% +31%

Online Media 0.8 1.5 1.8 3.0 +24% +10%

Transport & Food 1.0 3.0 2.0 5.0 -26% +17%

Total 7.0 12.0 9.0 22.0 -24% +22%

2. Regional Overview 15 – 23

3. Indonesia 24 – 33

4. Vietnam 34 – 38

5. Malaysia 39 – 45

6. Thailand 46 – 50

7. Singapore 51 – 55

8. Philippines 56 – 59

56 B2C E-Commerce in the Philippines was to maintain the acceleration with the support of Filipino banks in 2020. The Philippines: B2C E-Commerce Market Overview, February 2021  The Philippines’ B2C E-Commerce market is on the path of developing, especially during the new normal lifestyle imposed by the pandemic. Its Internet economy is predicted to rise from USD 7.5 billion (EUR 6.6 billion) in 2020 to USD 28 billion (EUR 24.6 billion) in 2025, a 30% increase, according to the report of Google, TEMASEK, Bain & Company in November 2020. In addition, E-Commerce gross merchandise value is as well expected to grow over the same period by 31% from USD 4 billion (EUR 3.5 billion) in 2020 to USD 15 billion (EUR 13.2 billion) in 2025, as the same source reports.  With the acceleration of the pandemic and adoption of online shopping, E-Commerce platforms saw increased website visits. This list includes Shopee with 35.6 million monthly visits, followed by Lazada 34.8 million visits, as per iPrice Insights in November 2020.  Filipino banks have recently focused on the increased accessibility of digital wallets and microfinance among micro, small and medium enterprises (MSMEs) and the unbanked population by collaborating with fintech companies, according to SunStar in October 2020. Moreover, Bangko Sentral ng Pilipinas released the BSP Digital Payments Transformation Roadmap 2020-2023 to enhance consumers’ use of digital payments and to increase availability of electronic financial goods and services. One of the goals of this idea is to transform 50% of total number of retail payments into online form and boost the accessibility for Filipinos to financial operations to 70%. Another aim is to introduce more novelty online financial services and upgrade the payment framework, as per the same source.  During the pandemic, with the enhancement of electronic commerce, the Bureau of Internal Revenue in the Philippines released new guidelines that oblige online retailers to register with the government agency, irrespective of the sales volume, as TMO Group reported in July 2020. The new requirement is established for two types of online merchants: individuals operating online without tax identification number (TIN) and the ones who have TIN. The requirement for the first type is to register their companies according to the existing regulations in securing registration of enterprise and tax identification number. The latter ones are to register their business as individual or non-individual, according to the same source. Moreover, there are also some requirements for foreigners who wish to sell in the Philippines both online and offline: investment of a minimum prescribed fund (depending on the type of good sold), pre-qualification under the BOI (Board of Investment) and registration with the SEC (Securities and Exchange Commission).  The government of the Philippines aims to impose a VAT of 12% on sales by digital service providers for both residents and non-residents, according to KPMG in September 2020. A non-resident online services provider will have to register as a taxpayer if its gross revenue for the last 12 months has exceeded PHP 3 million (EUR 53,007). Note: the exchange rate applied in the chart is the average rate for 12 months to December 2020: PHP 1 = EUR 0.01766925 and USD 1 = EUR 0.878687 Source: KPMG, September 2020; TMO Group, July 2020; SunStar, October 2020; iPrice Insights, November 2020; Google, TEMASEK, Bain & Company, November 2020

57 E-Commerce GMV in the Philippines was forecasted to reach USD 15 bil. (EUR 13.2 bil.) in 2025, an annual increase of 31% from 2020. The Philippines: Internet Economy Market Size, in USD billion, by Categories, incl. E-Commerce, Online Media, Online Travel, Transport & Food, 2015, 2019, 2020e & 2025f

GMV, in USD billion 2015 2019 2020e 2025f CAGR 2019-2020 CAGR 2020-2025

E-Commerce 1.0 3.0 4.0 15.0 +55% +31%

Online Travel 1.0 2.0 0.7 5.0 -66% +46%

Online Media 0.4 1.7 2.1 5.0 +27% +17%

Transport & Food 0.3 0.8 0.8 4.0 -10% +36%

Total 2.0 7.1 7.5 28.0 +6% +30%

Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.878687 E-Commerce does not include social commerce due to lack of reliable data Definition: GMV – gross merchandise value E-Commerce includes Marketplaces, Malls, Direct to Customer; Transport & Food includes Transport and Food Delivery; Online Travel includes Flights, Hotels, Vacation Rentals; Online Media includes Advertising, Gaming, Video on Demand, Music on Demand; Internet Economy includes all the above segments Source: Bain Analysis cited by Google, TEMASEK, Bain & Company, November 2020 58 In the Philippines, Shopee and Lazada had the highest number of website visits, 35.6 mil. and 34.8 mil., respectively, during Q3 2020. The Philippines: Top 10 E-Commerce Websites, by Number of Website Visits, AppStore/PlayStore Rank, and Number of Followers on Social Media Platforms, Q3 2020

Monthly Web PlayStore Merchant AppStore Rank Twitter Instagram Facebook Visits Rank

Shopee 35,551,800 1 1 76,300 533,900 18,870,500

Lazada 34,786,100 2 2 85,300 542,300 30,072,300

Zalora 830,400 3 3 100 228,500 7,843,300

eBay 726,400 5 4 800 10,000 1,082,000

Beauty MNL 537,400 4 5 4,800 358,900 830,400

Galleon 299,600 n/a n/a 1,700 3,200 93,300

iHerb 191,200 6 7 n/a n/a 2,792,000

O Shopping 154,000 7 6 n/a 74,800 598,400

Ubuy 109,500 8 9 n/a 400 5,500

Kimstore 109,200 n/a n/a 10,100 207,900 3,158,700

Note: the table ranks the top 10 E-Commerce players in the Philippines based on their average quarterly traffic, mobile application ranking, social media followers and number of staff the following industries were not included in this list: e-ticketing, financial services, rental services, insurance, delivery service, food & beverage, meta-search, couponing, cashback websites and ecommerce who solely provides classified ads/P2P services. Also, all E-Commerce who initiated their business as a physical store were excluded from this list. Source: iPrice Insights, November 2020 59 60