Rocket Internet Se · HAM:RKET
Rocket Internet — Kinnevik Capital Markets Day 2014
42 slides from Rocket Internet's conference presentation, 2014
Slide 1: Identifying, Building and Scaling Market Leading Online Companies
“f) ROCKETINTERNET Identifying, Building and Scaling Market Leading Online Companies Kinnevik Capital Markets Day 2014
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is public information only, but & does not necessarily represent all information related to the issues discussed or presented herein, or all views of the company. The information has been researched by the company with due care and all and an
Slide 3: Introduction: Presenting Team
INTRODUCTION PRESENTING TEAM Oliver Samwer Alexander Kudlich Founder Managing Director * Co-founded Alando.de (exit to ebay), Jamba! (exit to VeriSign) and CityDeal (merged with Groupon and later IPO) * Previously with Axel Springer AG * Master in Finance from University of St. Gallen (HSG), MA in P
Slide 4: The Rocket Mission
THE ROCKET MISSION “@f) ROCKETINTERNET TO CREATE THE WORLD’S LARGEST INTERNET PLATFORM OUTSIDE OF CHINA AND THE US
Slide 5: Rocket's Global Reach at a Glance
ROCKETS GLOBAL REACH AT A GLANCE ba Rocket Ventures are active in more than 100 countries STRUCTLY COMPIOCNTIAL
Slide 6: We Focus on Five Key Regions
WE FOCUS ON FIVE KEY REGIONS... Asia & Pacific © netpy, Awenwne Mote Above vention magn ave fen Compreternes STWICTLY COMPROCNTIAL f
Slide 7: ...and Three Key Sectors
.». AND THREE KEY SECTORS home €) Awesnwinc © tlelpting QTD Nation Olendico — S zencop ® bonnyprinee @iiLossy pox (J wimou RciickBus P PAYMILL peyever” lamoda & ¥foodpSnds FJovacoce FAB ae JABONG > | 23 netofood | <carmudi ZALORA | LAZADA | easy (@) 10 @amudi & THE OfficeYes ICONIC @kaymu Qmebly [do
Slide 8: Our Global Reach Covers the Largest Internet and Mobile Audience
OUR GLOBAL REACH COVERS THE LARGEST INTERNET AND MOBILE AUDIENCE # of Global Internet Users: 2.6 Bn # of Global Unique Mobile Users: 4.5 Bn Rocket internet Regions 78% Source, IDC, teromenter, WO (Veer 2003 Data} STRICTLY COMPIOLNTIAL a
Slide 9: Rocket's Local Footprint Includes Facebook's Top User Cities
ROCKET’S LOCAL FOOTPRINT INCLUDES 9 OF FACEBOOK’S TOP 10 USER CITIES Via Smartphones People Are Able to Access Facebook Everywhere in the World - Top 10 Cities on Facebook # City Country Active Proven Winners Users (MM) 1. Bangkok Thailand ZALORA 8.7 2. Jakarta Indonesia AZADA ZALORA 7.4 3, Istanbul
Slide 10: Rocket Reaches the Fastest Growing Global Markets
ROCKET REACHES THE FASTEST GROWING GLOBAL MARKETS © Prosser isrere of Gooey @ veerer vee stare of cco) GD sec tect Ue (ta of Cnt QO eee secrets thre cates FE] Poms toes Share of Global Users Seurve: Global Soca Capital & Motte Stamiimes Lam 20014 Crowes ter 2013-2036" STRICTLY COMPIOCNTIAL
Slide 11: Rocket Internet's Macro-Economic Market Opportunity
ROCKET INTERNET’S MACRO-ECONOMIC MARKET OPPORTUNITY The US Internet Opportunity 41.3 Tn We maruatcoar, uss) 4@) ROCKETINTERNET O% 6-1.8 Tn Public Market Cap Potential (est. Range Based on US/China GDP/Market Cap Ratios) Total Market CapiPublic US-Intemiet (Apr 2014) The China Internet Opportunity Th
Slide 12: How We Identify, Build & Scale Market Leading Internet Businesses
HOW WE IDENTIFY, BUILD & SCALE MARKET LEADING INTERNET BUSINESSES - Unparalleled experience in scaling” world-class Internet businesses @ Deep technical and operational expertise infrastructure @ Founding 3-6 new ventures on average p.a. Gp ROCKETINTERN ® Consistent returns across portfolio vintages
Slide 13: Our Infrastructure
OUR INFRASTRUCTURE ® Founding 3-6 new ® Highly structured / best ventures on average p.a. ROCKETINTERN practices ® Consistent returns across ® Centralized IP with portfolio vintages regional execution ® Predictable and repeatable ® Partnerships and framework agreements ® Provision of shared services
Slide 14: More Than 15,000 People on the Ground
WE HAVE MORE THAN 15.000 PEOPLE ON THE GROUND STRICTLY COMPIOUNTIAL
Slide 15: Rocket's Team
ROCKET'S TEAM =, FUNCTIONAL EXPERTS, REGIONAL LEADERS & ENTREPRENEURS — =a Rocket Internet's organization consists of three parts: Our people are organized around the portfolio of companies, the regions and the core functions @f) ROCKETINTERNET ry a Functional Experts t:3 J Regional leaders | Tech M
Slide 16: Functional Experts Offer Unparalleled Expertise
ROCKET’S TEAM OF FUNCTIONAL EXPERTS OFFERS UNPARALLELED EXPERTISE AND HANDS-ON EXPERIENCE IN COMPANY BUILDING - EXAMPLES Leads global community of 40+ Rocket CTOs Tech Tech leadership for 10+ Rocket ventures Defended Rocket ventures against 20+ security attacks natheting 337,000.000+ keywords in sea
Slide 17: Regional Leadership Teams Have Launched Companies Across >100 Countries
wstrasteucture OUR REGIONAL LEADERSHIP TEAMS HAVE LAUNCHED COMPANIES *~ ACROSS >100 COUNTRIES te? Hiren Tenens (et Co-C1O Awe \ 7 Doe SEE breton ieattute of Marogement " Koen Thajisen saste Deutiche Bond Lehenae Brothers Bodrga Lenpso | COCO Late America |) Londen Schoo af Nowe NOMA x ) Economies ac
Slide 18: Meet Some of the Co-Founders Who Lead Our Ventures
MEET SOME OF THE CO-FOUNDERS WHO LEAD OUR VENTURES TO SUCCESS X.) ) Gafiti lumoda « © Lendico P PAYMILL . R Bzanui JUMIAR KY mou ‘CickSus <cormudl
Slide 19: Our Unique Execution Processes
OUR UNIQUE EXECUTION PROCESSES ® Unparalleled experience in scaling world-class Internet businesses ® Deep technical and operational expertise Infrastructure ® Founding 3-6 new ventures on average p.a. ® Consistent returns across portfolio vintages ® Predictable and repeatable ® Partnerships and fra
Slide 20: Company Building Process Mitigates Four Key Risks
ROCKET INTERNET‘’S COMPANY BUILDING PROCESS MITIGATES FOUR KEY RISKS IN ; » VENTURE BUILDING ~ ating value while mitigating 4 key risks across the fastest growing markets in the world Clear criter electing business models Business Significant market Proven replicable business model Window of opportu
Slide 21: Early Days of Execution: From Idea to Global Rollout
EARLY DAYS OF EXECUTION: FROM IDEA TO GLOBAL ROLLOUT In case of positive conclusion, more detailed analysis incl. competitive landscape by relevant region Identification of test country and development of pilot if sentiment still predominately positive Post successful 2-3 months test period, global
Slide 22: How Do We Internationalize Companies?
HOW DO WE INTERNATIONALIZE COMPANIES? PROVE — TRANSFER — GROW SS) TRANSFER to Underserved, High-Growth Emerging Markets and GROW as Fast as Possible to Become Market Leader © Lendice wETWING foodpinds ‘Successful Expansion and Execution Speed Backed by Regional Strength and Functional Expertise of t
Slide 23: Highly Standardized Company Building Process
Procets COMPANY BUILDING AT ROCKET FOLLOWS A HIGHLY STANDARDIZED PROCESS, oy UNLOCKING LEARNING CURVE ADVANTAGES AND SYNERGIES ACROSS THE PORTFOLIO omen Set up Rocket Best Practices - Dey 100 Reporting & Optimization INDE Dey 200 Design Website & Apps site ons tenant Cr MVP web & apps Mates Marketin
Slide 24: High-Resolution Reporting Across All Business Functions
Process ROCKET VENTURES START FROM DAY ONE WITH HIGH-RESOLUTION REPORTING ) ACROSS ALL BUSINESS FUNCTIONS, FACILITATING SYSTEMATIC OPTIMIZATION = Reporting Input: Key Metrics Data Warehouse Output: Automated KPI Reporting pulled automatically from venture and third for each Venture and benchmarking
Slide 25: Examples for Data-Driven Optimization (1/2)
EXAMPLES FOR DATA-DRIVEN OPTIMIZATION (1/2) ONLINE MARKETING Problem (March 2014) * Increase of customer acquisition cost (CAC) in Search Engine Marketing (SEM) channel by ~20% relative to February * Cause: Venture increased investment into SEM SEM Feb to Mar (Feb indexed to 100) Cost | CountryA | 1
Slide 26: Examples for Data-Driven Optimization (2/2)
EXAMPLES FOR DATA-DRIVEN OPTIMIZATION (2/2) e USER EXPERIENCE Problem (October 2013) Solution Impact (November 2013) * Ventures exceeded the critical * Rocket experts and venture * One month later load times of all Rocket threshold of 8 seconds team immediately developed ventures were pushed below c
Slide 27: Example: Launching Helpling in Days
EXAMPLE LAUNCHING HELPLING IN 80 DAYS May 21; UVE in Austria Apr 30; LIVE in Disseldorf, Frankfurt & Stuttgart Apr 10: LIVE in Hamburg, Munich & Cologne Mar 30: First apartment in Berlin cleaned Feb 18: Head of Operations joins Jan 30: Development of website starts Jan 20: Founders join Jan 10: Deci
Slide 28: Technology at Rocket
TECHNOLOGY AT ROCKET ® Unparalleled experience in scaling world-class Internet businesses ® Deep technical and operational expertise ® Founding 3-6 new ventures on average p.a. ® Consistent returns across portfolio vintages s Partnerships and framework "agreements Provision of shared services to Jum
Slide 29: Key Principles for Building Technology at Rocket
KEY PRINCIPLES FOR BUILDING TECHNOLOGY AT ROCKET Speed Optimized for and best Stability Without single points of failure <10 min time per nonth) Scalability Architecture bulid to run STRICTLY COMPIOCINTIAL BEEEEGGEGES - i 3 iB th
Slide 30: Proprietary Technology Platforms for Our Three Focus Sectors
PROPRIETARY WORLD-CLASS TECHNOLOGY PLATFORMS FOR OUR THREE . FOCUS SECTORS Neer eCommerce Platform Marketplace Platform Fintech Platform RONTEND FRONTEND FRONTEND ] b&b J | : _J L a) * Used by all Rocket eCommerce shops * Powering Rocket's classifieds ventures * Powering Rocket's financial technolog
Slide 31: Core Platform Integrated With Proprietary Extensions and External Solutions
CORE PLATFORM IS INTEGRATED WITH BOTH PROPRIETARY EXTENSION AND EXTERNAL SOLUTIONS OF OUR PARTNERS Technalogy PLATFORM PARTNERS PROPRIETARY CORE PLATFORM Google Rzendesk Asterisk
Slide 32: All Ventures Follow Standard Set of Proven Operation Principles
Technalogy ALL VENTURS FOLLOW STANDARD SET OF PROVEN OPERATION PRINCIPLES Ss STANDARD TEAM SETUP PROVEN TOOLSET COLIC
Slide 33: Find and Empower Top Local Teams
OUR GOAL IS TO FIND AND EMPOWER TOP LOCAL TEAMS. WE ARE DEEPLY INVOLVED IN RECRUITING, TRAINING AND MONITORING KICKOFF —————————>_~=s_ LAUNCH ——— INDEPENDENCE ————————> _ PERFORMANCE Team Building Monitoring * Rocket Internet's size and * Onsite training for all teams Real-time calculation of system
Slide 34: The Scale of Rocket's Platform
THE SCALE OF ROCKET’S PLATFORM 380.000.000 9x More Google Searches in Mails send to customers of Rocket ventures in . As March 2014 Indonesia for “Lazada vs. “Apple” Countries live in mem) =64.712.000.000 Total visits to websites of Rocket ventures since January 2011 PeyAmUee 44.000.000 Keywords cov
Slide 35: 4BN+ Total Visits to Rocket Ventures Since 2011
4BN+ TOTAL VISITS TO ROCKET VENTURES SINCE 2011... Monthly Visits at Rocket Ventures 23 2014 | 11.00.00 1.253.000.0090 -2,331,000.000 0 2013/01 2011/04 = 2011/07 2011/10 2012/03 2012/04 §=2032/07 2012/10 2013/01 2013/04 «2013/07 2013/10 2014/01 2014/08 Source Rocket internet STHICTLY CONFIDENTIAL
Slide 36: Launches of New Country Websites per Month
Technology .. AND LAUNCHES OF UP TO 16 NEW COUNTRY WEBSITES PER MONTH N=] Monthly Launches of Country Websites 0 0 - Lil Jill Wl i iillli | i PSSM SPN UT ee PEE EEEE Serve Rocket internet STRICTLY CONFIDENTIAL
Slide 37: A Strong Ecosystem of Commercial and Strategic Partners
Technulogy A STRONG ECOSYSTEM OF COMMERCIAL AND STRATEGIC PARTNERS N=) Regional Strategic Partners O0G0000 || Mae TESCO Cis) KERING — Colluiar SA i -<=== Revenues 0.2 Ba? €9.7 Bev) Bon (9.6 Bal 11.1 Bn!® 6.8 Bri? 77.8 Be"! Market Cap 7,861 MMe 19.9 Be 7.4 Be! 8.7 Bn 9.4 Bn 29.3 Be Key Facts & * >SOs
Slide 38: Bundling of Purchasing Power Across Portfolio
Technology BUNDLING OF PURCHASING POWER AND VOLUME ACROSS PORTFOLIO PROVIDES NASCENT AND MATURE ROCKET COMPANIES WITH IMPROVED COMMERCIAL TERMS w=) Gp ROCKETINTERNET Global Framework Agreements Pricing Google facebook Extended payment terms 7.\ Adobe criteoL. Maximum flexibility seciomantic Improved
Slide 39: Our Dynamic Portfolio Pipeline
OUR DYNAMIC PORTFOLIO PIPELINE ® Unparalled experience in scaling world-class Internet businesses ® Deep technical and operational expertise ® Founding 3-6 new . ventures on average p.a. Gp ROCKETINTERN ® Consistent returns across portfolio vintages Technology ® Predictable and repeatable ® Partners
Slide 40: Rocket Internet Will Continue to Scale Business Models Globally
ROCKET INTERNET WILL CONTINUE TO SCALE BUSINESS MODELS GLOBALLY ACROSS ITS KEY SECTORS AND REGIONS Parttolio Pgeline e& sconiietce | __Marketplace | Sete Ser DeTeeY, hom@® @ a Pronnypenee Qearosvecn Europe lamoda «4 Russia py A Jasonei> EZR iy ee, zanui aa hot GEE B zanul [ae | Officees printverue Q
Slide 41: We Have the People, Processes, Platform and Pipeline
WE HAVE THE PEOPLE, PROCESSES, PLATFORM AND PIPELINE TO CREATE MASSIVE VALUE Why Invest in Rocket Internet? Addressing a Massive and Fast Growing Market Opportunity v Ability to Reach Over 1 Billion Internet and Over 3 Billion Mobile Users Across the World ¥ Well Positioned to Capture Increasing Con
Slide 42: Rocket Internet Contact
49 ROCKETINTERNET www.rocket-internet.com investors@rocket-internet.com Apply today at Rocket Internet for jobs in over 100 countries: jobs@rocket-internet.com i WUCTLY COMPROONTIAL