Zalando - Europe's market leader in fashion eCommerce

April 2013

Mega trend:

Online fashion is the second wave of eCommerce, following the first wave of

commodity products like books and electronics, with a future share of retail of > 25%

Business opportunity:

Online fashion offers a unique combination of high revenue potential (€ 500bn

market in Europe) and highest gross margins in eCommerce (50-60%)

Market leadership:

Zalando has become the leader in European fashion eCommerce by being the

fastest growing European company ever, with >€ 1 billion in net sales in 4th year

Zalando is driving a mega trend, bringing fashion

eCommerce to Europe

2

• Expansion into other fashion

categories (clothing,

accessories, sports, home)

• Expansion into private label

• Subsequent geographic

expansion across Europe

• Zalando now active in 14

European markets

• Broadest product selection

(third party brands) – not

discount model

• Convenient shopping (free

shipping, 100 days returns)

• Fast brand building

Market:

€ 10bn

Market:

€ 100bn

Zalando’s path started with shoes in Germany – subsequent

expansion into other fashion categories and countries

3

2008/09: Germany’s leading

online shop for shoes

2010: Expansion to other

fashion categories

2011/2012: Leadership in

European fashion eCommerce

Market:

€ 500bn

Key achievements of Zalando within

the first four years of operation

① Europe’s fastest growing company with over €1 billion¹ in sales after 4 years

• 4% market share in German shoe market (most mature market)

• Clear market leader in European fashion eCommerce

② Best in class offering and operations

• Fashion destination with the best fashion offer and shopping experience

• Proprietary logistic infrastructure and leading IT team

• Focused, data driven organization forcing constant optimization

③ Core DACH markets reached break-even in 2012 after 4 years

• Clear path to profitability

• Positive margin trend in all regions

④ Strong management team and well capitalized business

• Motivated and experienced management team led by co-founders

• Conservative balance sheet with strong equity ratio of >50%

• Supportive shareholders and banks

¹ DACH = Germany, Austria, Switzerland. 4

Net sales

(€ million)

• 4% market share in

German shoe market

• New categories1 and

countries gaining

importance fast

• ~ 50% of

revenues outside

Germany

• ~ 50% of

revenues in new

categories

¹ Categories outside of shoes (clothing, accessories, sports, home, etc.) 5

1 Zalando is the fastest European company ever to reach

€ 1 billion in sales, four years after being founded

1,159

150

6

510

2009 2010 2011 2012

Zalando is active in 14 European markets

with brand recognition of over 90% in key markets

Aided brand awareness in core

markets¹ (Percentage) Targeting total

population of

>400m people!

zalando.se

zalando.co.uk

zalando.nl

zalando.fr

zalando-prive.fr

zalando.es zalando.it

zalando.be

zalando.at

zalando.ch

zalando-lounge.de

zalando.de zalando.pl

zalando.no zalando.fi

zalando.dk

93

94

94

92

90

94

93

88

94

91

95

95

CH

AT

IT

FR

NL

GE

Shoes Fashion

¹ As of January 2013.

Targeting

population of

>400 million

6

2

Private labels

(Examples)

Third party brands

(Examples)

Partner program

• Higher availability

• Better selection

7

Online fashion destination with >150,000+ styles offered by >1,500 brands

Zalando has become the fashion destination on the

internet with a broad assortment… 2

¹ Source: SEMrush (traffic from the first 20 search results on Google for fashion websites in Germany, France, UK, Spain and Italy), ComScore (H2 2012 Europe).

² Source: google analytics.

Visits per month²

(million)

8

… making Zalando Europe’s most visited fashion website

and one of the top 10 most visited retail websites¹ 2

Mar

Jan

Nov

Sep

Mar

Jan

Nov

Sep

Jul

May

Mar

Jan

Nov

30

20

10

0

Jan

Nov

Sep

Jul

May

100

90

80

70

60

50

40

Sep

Jul

May

Mar

Jan

Nov

Sep

Jul

May

Zalando

LAUNCH

New Country:

Austria

Launch

First TV spot:

Warning

Launch

Clothing

Launch Zalando

Lounge

Launch

Beauty Launch

Sport

New Country:

Netherlands

New Country:

France

Launch

Premium

New Country:

Italy

New Country:

UK

Launch

News & Style

EFFIE Award

New Country:

Switzerland

Launch

Zalando

Magazine

Launch:

Home Cooperation

„Germany‘s next

Topmodel“

New Countries:

Sweden

Belgium

New Country:

Spain

New Countries:

Finland

Denmark

New Country:

Norway

New Country:

Poland

TV Spot

Christmas

Erfurt logistic

center opens

2008 2009 2010 2011 2012 2013

>90 million website visits per month

More than 13 million customers have ordered until today

Phase 1

(2009-2010)

Phase 3

(2012-2013)

Großbeeren

(Winter 2010)

Brieselang

(Summer 2011)

Erfurt

(Summer 2012)

Mönchengladbach

(Summer 2013)

• First logistics center

established

• Operated by logistics

partner DocData

• 30,000 sqm

• First logistics center

operated by Zalando

• 30,000 sqm

• First logistics center built

to Zalando needs

• Designed and operated

by Zalando

• Largest eCommerce

logistics facility in

Europe

• 75,000 sqm (+45,000

sqm expansion ongoing)

• Second large logistics

center construction

• Same concept used as

in Erfurt

• Test operations to start

in summer 2013

• 75,000 sqm (+45,000

sqm expansion option)

9

Phase 2

(2011)

• Logistics centers are located in central locations in Germany, servicing all European countries

• Zalando is leasing land and buildings to limit capital investment

• Combined capacity of >250,000 sqm operational / in construction (~300,000 sqm including option)

Zalando has shifted from outsourced logistics to a proprietary

logistics network to ensure best in class and low cost delivery 2

10

One of Europe’s leading technology teams with about 300 IT specialists

Unique IT platform: ZEOS uses modular approach to build

highly scalable IT platform 2

2012 2011

EBIT margin

1 DACH = Germany, Austria, Switzerland

• Core DACH markets1

reached break-even after

only four years of

operation

• Positive margin trends in

all regions as customers

are loyal and efficiency is

improved

• Strengthened European

market leadership

(added 7 markets for total of

14 markets)

11

2010

Continuous margin improvements with DACH markets

reaching break-even in 2012 3

-7%

-12%

-15%

Equity Ratio of >50% at the end of 2012e*

* 2012 number is preliminary and unaudited.

Shareholder base (equity) Banks (debt)

12

Management team – responsible for Zalando in three dimensions

• Robert Gentz, Co-Founder and Managing Director Zalando as an internet technology company

• David Schneider, Co-Founder and Managing Director Zalando as a fashion company

• Rubin Ritter, Managing Director Zalando as a process machine

+ Extremely strong second / third level management team

Strong management team and well capitalized business –

backed by a highly aligned shareholder base and banks 4

Zalando’s operational excellence and strong customer focus

have been and will be key differentiators against competitors

13

Key differentiators along the value chain

Strong relations with

third party brands

Private labels fashion & sourcing

competence

Online marketing expertise

International payment platform

Proprietary logistics network

KPI culture & implementation speed

Proprietary & scalable IT platform

Customer convenience model

Outstanding brand recognition