Rocket Internet Se · HAM:RKET

Rocket Internet — Investor Presentation (January 2016)

15 slides from Rocket Internet's investor presentation, Jan 19, 2016

  1. Slide 1: Rocket Internet Co-Investment Fund

    Presentation1 Agenda Page [PRESENTATION TITLE] April 2015 Rocket Internet Co-Investment Fund [CLIENT NAME] 19th January 2016 1

  2. Slide 2: Disclaimer

    Disclaimer This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent

  3. Slide 3: Successful First Closing of Rocket Internet Capital Partners Fund

    Successful First Closing of Rocket Internet Capital Partners Fund First closing of Rocket Internet Capital Partners (the “Fund”) Commitments of $420m making it the largest European Fund focused on internet investments even at first close Fund will co-invest alongside Rocket in a set ratio Rocket Int

  4. Slide 4: Rocket Internet Capital Has Always Been Complemented by 3rd Party Capital

    Rocket Internet Capital Has Always Been Complemented by 3rd Party Capital Significant Cash Blue Chip Time to Breakeven 3rd Party Capital Balances Co-Investors Cash at Operating Companies E-Commerce: 6-9 years >€1.0bn as of 30 November 2015 Market place: 5-7 years ca. €1.1bn of 3rd party Average age

  5. Slide 5: Strong Interest from Alternative Asset Managers to Co-Invest with Rocket Internet

    Strong Interest from Alternative Asset Managers to Co-Invest with Rocket Internet Providing Non-Dilutive Capital Alternative Asset Managers Insurance Endowment Pension Funds Foundations Companies Funds Minimum additional $420m of capital WITHOUT dilution for Rocket Internet shareholders Institutiona

  6. Slide 6: Co-Investment Fund will Greatly Improve the Speed, Efficiency and Economics

    Co-Investment Fund will Greatly Improve the Speed, Efficiency and Economics Increase in Speed of Increase in Funding Increase in Economic Increase in Influence Fund Raising Efficiency Upside through Alignment of Interest Fund enables Fund replaces a Rocket Internet will Rocket Internet as Rocket Int

  7. Slide 7: Fund Model Superior to Case-by-Case Co-Investments

    Fund Model Superior to Case-by-Case Co-Investments Improving Funding Efficiency and Speed Previous Case-by-Case Co-Investment Model New Co-Investment Fund Model 3rd Party Co-Investors1 8 Investors 20% Individual 3rd Party Co- Investor(s) 11 Investors 18 Investors 36 Investors 80% Co-Investment Fund

  8. Slide 8: Reliance on 3rd Party Capital Greatly Reduced and Securing Relevance of LPV

    Reliance on 3rd Party Capital Greatly Reduced and Securing Relevance of LPV Since IPO With Rocket Fund ~€1.2bn 20% 3rd Party Co-Investors For valuation in funding rounds setting  Setting of valuation  Maintaining relevance of LPV Rocket 3rd Party Rocket Rocket Co- 3rd Party Investments Co-Investor

  9. Slide 9: Rocket Internet Maintains Significant Ownership and Economic Upside

    Rocket Internet Maintains Significant Ownership and Economic Upside Typical Incubation Phase Series A Financing Management  €20m valuation pre-money 10% Ownership  €10m funding round  20% third party participation (validation) €10m Funding Round 80% €8m 20% €2m 16% 64% No Rocket €1.6m €6.4m Parti

  10. Slide 10: Improvement of Economic Ownership

    Improvement of Economic Ownership HelloFresh without Fund Illustratively HelloFresh with Fund Rocket Internet SE Key Assumptions Implied Rocket Ownership1 - Carried Interest: 22.5% Internet SE Ownership2 - Exit at €2.6bn 60% 56% €1.55bn €1.45bn Fund: €45m €188m €219m Rocket Internet: €143m Capital I

  11. Slide 11: Rocket Internet Co-Investment Fund - Key Terms

    Rocket Internet Co-Investment Fund - Key Terms Fund Size and Investment Target fund size: $500m Structure Rocket Internet to contribute 10% of the Fund or minimum $50m Co-Investment ratio of 1:4 ($1 Rocket, $4 Fund), resulting in 28% economic exposure for Rocket Internet (combined direct and indirec

  12. Slide 12: Fund Enables Rocket Internet to Capitalise on the Opportunities Ahead

    Fund Enables Rocket Internet to Capitalise on the Opportunities Ahead Rocket Internet Access to Capital Size of the Latest Fund2 €2.3bn €385m1 €2.1bn €2.0bn €1.7bn €1.6bn Rocket Internet³ Fund Capital Available for Portfolio Companies (1) $420m commitments at first close at FX rate EUR/USD=1.09 (2)

  13. Slide 13: Ability to Invest Larger Amounts Along the Lifecycle

    Ability to Invest Larger Amounts Along the Lifecycle The Fund will be providing capital over the lifecycle of a company to proven online business models in markets outside the U.S. and China Seed Stage Early Stage Expansion Stage Late Stage Public Company Company Revenue Sources of Capital Friends &

  14. Slide 14: Unique Benefits of Fund Provide Upside for Rocket Internet Shareholders

    Unique Benefits of Fund Provide Upside for Rocket Internet Shareholders Rocket Internet retains founder economics  Seed-rounds for Rocket Internet incubated companies are excluded from the 1:4 investment ratio, since Rocket Internet provides a service well beyond that of a financial investor Rocket

  15. Slide 15: Unique Leverage for Rocket Internet

    Unique Leverage for Rocket Internet Access to a completely new class of institutional investors and non-dilutive capital Fund improves speed and efficiency of fund raisings for portfolio companies Economic participation in upside of the Fund improving the economic return proposition for Rocket Inter

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