Zalando is the fastest growing European eCommerce company, reaching over €1 billion in sales within 4 years of being founded. It has become the leader in online fashion retail across Europe, with a presence in 14 countries and over 90 million monthly website visits. Zalando differentiates itself through its broad selection of over 150,000 styles from over 1,500 brands, its proprietary logistics network, and highly scalable IT platform. After initially focusing on shoes in Germany, it has expanded into multiple fashion categories and countries while improving its margins, with its core markets reaching break-even in 2012.

1. Zalando Europe's
market leader
in fashion
eCommerce
April 2013

2. Zalando is driving a mega trend, bringing fashion
eCommerce to Europe
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
2

3. Zalando’s path started with shoes in Germany – subsequent
expansion into other fashion categories and countries
Market:
€ 500bn
Market:
€ 100bn
Market:
€ 10bn
2008/09: Germany’s leading
online shop for shoes
• Broadest product selection
(third party brands) – not
discount model
• Convenient shopping (free
shipping, 100 days returns)
• Fast brand building
2010: Expansion to other
fashion categories
• Expansion into other fashion
categories (clothing,
accessories, sports, home)
• Expansion into private label
2011/2012: Leadership in
European fashion eCommerce
• Subsequent geographic
expansion across Europe
• Zalando now active in 14
European markets
3

4. 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

5. 1
Zalando is the fastest European company ever to reach
€ 1 billion in sales, four years after being founded
Net sales
(€ million)
1,159
• 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
510
150
6
2009
2010
¹ Categories outside of shoes (clothing, accessories, sports, home, etc.)
2011
2012
5

6. 2
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
Targeting
population of
population of
zalando.co.uk
>400 million
>400m people!
94
GE
zalando.no
zalando.se
zalando.dk
zalando.fr
zalando-prive.fr
zalando.es
93
NL
95
90
FR
88
zalando.pl
zalando.nl
zalando.be
95
zalando.fi
zalando.de
zalando-lounge.de
92
IT
91
zalando.at
zalando.ch
94
AT
94
zalando.it
94
CH
93
Shoes
¹ As of January 2013.
Fashion
6

7. 2
Zalando has become the fashion destination on the
internet with a broad assortment…
Online fashion destination with >150,000+ styles offered by >1,500 brands
Third party brands
(Examples)
Private labels
(Examples)
Partner program
• Higher availability
• Better selection
7

8. … making Zalando Europe’s most visited fashion website
and one of the top 10 most visited retail websites¹
2
Visits per month²
(million)
TV Spot
Christmas
100
New Country:
Norway
90
80
>90 million website visits per month
New Country:
Poland
More than 13 million customers have ordered until today
Erfurt logistic
center opens
New Countries:
Sweden
Belgium
70
60
New Countries:
Finland
Denmark
Launch
Zalando
Magazine
EFFIE Award
50
New Country:
Spain
New Country:
Italy
New Country:
France
40
30
20
New Country:
Austria
Zalando
LAUNCH
Launch
First TV spot:
Warning
Launch
Clothing
Launch:
Home
Cooperation
„Germany‘s next
Topmodel“
New Country:
Netherlands
Launch
Beauty
New Country:
Switzerland
Launch
Sport
Launch
Launch
Premium New Country: News & Style
UK
10
Launch Zalando
Lounge
0
Sep
Nov
2008
Jan
Mar
May
Jul
2009
Sep
Nov
Jan
Mar
May
Jul
2010
Sep
Nov
Jan
Mar
May
Jul Sep
2011
Nov
Jan
Mar
May
Jul Sep
2012
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.
Nov
Jan
2013
8

9. 2
Zalando has shifted from outsourced logistics to a proprietary
logistics network to ensure best in class and low cost delivery
Phase 1
(2009-2010)
Phase 2
(2011)
Phase 3
(2012-2013)
Großbeeren
(Winter 2010)
Brieselang
(Summer 2011)
Erfurt
(Summer 2012)
• 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)
Mönchengladbach
(Summer 2013)
• 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)
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)
9

10. 2
Unique IT platform: ZEOS uses modular approach to build
highly scalable IT platform
One of Europe’s leading technology teams with about 300 IT specialists
10

11. 3
Continuous margin improvements with DACH markets
reaching break-even in 2012
EBIT margin
2010
2011
2012
• 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
-7%
-12%
• Strengthened European
market leadership
(added 7 markets for total of
14 markets)
-15%
1 DACH = Germany, Austria, Switzerland
11

12. 4
Strong management team and well capitalized business –
backed by a highly aligned shareholder base and banks
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
Shareholder base (equity)
Banks (debt)
Equity Ratio of >50% at the end of 2012e*
* 2012 number is preliminary and unaudited.
12

13. Zalando’s operational excellence and strong customer focus
have been and will be key differentiators against competitors
Key differentiators along the value chain
Outstanding brand recognition
Customer convenience model
Strong
relations with
third party
brands
Private labels
fashion &
sourcing
competence
Online
marketing
expertise
International
payment
platform
Proprietary
logistics
network
Proprietary & scalable IT platform
KPI culture & implementation speed
13