Agile Retail @ LesaraThe Family

Berlin, February 2018

To create a more

fashionable

world

for everyone

Agenda

Brief Lesara Background

Agile Retail?

Lesara’s Performance

Wrap-up

Agenda

Brief Lesara Background

Agile Retail?

Lesara’s Performance

Wrap-up

Lesara strives to be the leading agile retail pioneer, with rapid revenue growth and geographic expansion.

Founders

A clear growth strategy with a successful supply chain model has allowed Lesara to expand at a very fast pace.

Current Investor Setup

Roman KirschCEO & Co-Founder

Matthias WilrichCOO & Co-Founder

Robin MüllerCTO & Co-Founder

2016 201720152014

* Extrapolated to FY

20152013* 20162014 2017

+300% CAGR

Rapid revenue growth and geographic expansion

Since the first days of Lesara, our supply chain agility has played an important role in our development

Fastest growing company – Europe (2016), Germany (2016, 2017)

One of the most important elements of the success story of Lesara is our supply chain work.

In 2017, Lesara has participated successfully in a number of supply chain competitions

“Lesara is the logic result of a long development: Online first, high efficiency,

low prices (…) and fast turnaround”

“Lesara stands as the global leader in agile retail”

“Lesara (…) has set up a remarkably efficient operation”

“Faster and smarter than Fast Fashion”

Lesara in the Media

Mass-Market : 50-60%

(Price points €5-€40)

Mid-Tier: 25-35%

(Price points €40-€150)

High-End: 15%

(Price points >€150)

Dominant Offline Players Dominant Online Players

Existing players are not up to excellence due to product quality & customer satisfaction (Chinese marketplaces) or time-to-

market & supply chain speed as well as product innovation (European players).

There is a huge window of opportunity for apparel companies targeting the mass market segment online

Agenda

Brief Lesara Background

Agile Retail?

Lesara’s Performance

Wrap-up

▪ Assortment: Width beats depth.

▪ Experience: Mobile beats desktop.

▪ Time to market: Fashion is not a commodity,

trendiness beats price.

▪ Speed: Reduced replenishment time reduces risk.

▪ Quality: Customer satisfaction is the basis for

sustainable success.

Deriving some lessons learned, here’s what we thought we’d consider when founding Lesara

Lessons learned from Fast Fashion Lessons learned from e-commerce

Innovative, agile supply chain management is the key to unlock an entirely new retail potential!

Our business model was built with a fundamental belief: supply chain should be the No. 1 enabler for our business success

To: Supply Chain as an enabler

The supply chain of a company enables a

company to sell products in a cost- and time-

efficient way

A different perspective has allowed us to focus on ways to always make our supply chain faster and more flexible

Traditional focus

Manufacture

goods

Order

placementDistribution

Customer

fulfillmentPlanning Transit

New focus

From: Supply Chain as a service

The products sold by a company should be

moved by the supply chain in an cost- and

time-efficient way

Since the first days of Lesara, our supply chain agility has played an important role in our development

Faster time-to-market for trend merchandise

tClassical

Retailer

Reverse-auction

factory quotations

Day 1

Data-driven trend &

merchandise selection

Day 0

Extensive research

(2 to 10 weeks)

Time-to-Market

(12 to 18 months)

Production

Day 2-7

Quality check of

product sample

Day 3-4

In-house Photoshoot

Day 4-5

Arrival in

warehouse

Day 8-9

Go-Live on Lesara

Day 10

SaleDay 10

Fastest trend sourcing possible!

Cutting the classical retailer’s trend-to-mass market time from 12-18 months to just 2-3 weeks.

Agility and speed keep proving that they’re fundamental

Agility + Speed: main growth drivers for growth

Source (without Lesara): Company data, Goldman Sachs global Investment Research.

Agenda

Brief Lesara Background

Agile Retail?

Lesara’s Performance

Wrap-up

Only a super-fast time-to-market allows a business model to shift from push to pull – and become more demand-driven

Lead Time / Time-to-Market

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pre-season Commitment (% products)

Pull (test-and-repeat)

Pull (test-and-repeat)

Pull (feedback loop)

Push

100%: 2-3 weeks

50%: 3-5 weeks, 15%: 8-12 weeks, 35%: 26 weeks

20%: 8-12 weeks, 80%: 26-39 weeks

Push/Pull Approach

50%: 2-4 weeks, 50%: 8-12 weeks

THE FASHION FIGHT OF

THE DECADE

VS

Agile Retail – why data is the key to success

Data driven trend detection Fast inclusion into assortment

Smart Replenishment

▪ Forecast future demand

▪ Optimal quantities ordered at the right time

▪ Top-sellers never out of stock

▪ Strictly avoiding overstocks

Karl Lagerfeld-driven approach Data-driven approach

Using data, testing and a strong operational backbone to improve the performance of products.

Testing between indoor and outdoor, additional perspectives and focus

Using data, testing and a strong operational backbone to improve the performance of products.

Testing between indoor and outdoor, additional perspectives and focus

+5272%

Time-efficient replenishment reduces inventory depth, and allows to carry more variety and avoid discounting needs

Styles on offer % of products sold at full price

Prime store space re-merchandised

0% 20% 40% 60% 80% 100%

H&M

Boohoo

Zara

Lesara

Daily

Weekly

Every two

weeks

Every two

weeks0

10000

20000

30000

40000

50000

60000

At one point in time Over course of year

Agile Retail concepts outperform even fast fashion retailers in terms of inventory turns, classical retailers fall behind

Inventory Turnover

Source: company reports, data from financial research companies

Classic Fast Fashion Agile RetailPlatform models

0

2

4

6

8

10

12

14

Lesara BoohooInditexH&MEsprit Gerry Weber AsosYoox Zalando VIPshop

Teamwork has allowed us to achieve challenging milestones with focus on speed and performance across all of our history

Website Launch First Internationalization Chinese Warehouse

4 weeksIdea

Finalization

5 weeksIdea

Finalization

8 weeksIdea

Finalization

Our value is about more than just words: NO to Limits – YES to Opportunities

Agenda

Brief Lesara Background

Agile Retail?

Lesara’s Performance

Wrap-up

Erfurt Go-Live: Coming up in H2, our own distribution center

We’re making fast progress in our 30,000 m² distribution center, ready from the ground up in just a few months!

In short: we are still confident we chose the right direction

Only a super-fast time-

to-market allows a

business model to shift

from push to pull

JIS, fast replenishment

reduces depth, and thus

allows to carry more

variety at lower risk

Agile Retail concepts outperform even fast fashion

retailers in terms of variety and inventory efficiency

(Semi-)integrated own-

or no-brand players are

achieving higher gross

margins

Growth rates show: it is

much easier to scale

more fashionable direct-

sourcing concepts

Customer satisfaction

leaders were always the

winners that came out of

any “retail decade”

Lesara combines Western (fast) fashion experience with Eastern direct sourcing

features

Our supply chain enables us to sell products in a cost- and time-efficient way

Thank you for your interest!