Rocket Internet Se · HAM:RKET
Rocket Internet — Investor Day (November 2017)
112 slides from Rocket Internet's investor day presentation, Nov 30, 2017
Slide 1: 9M 2017 Results Rocket Internet Group & Selected Companies and Capital Markets Day
9M 2017 Results Rocket Internet Group & Selected Companies and Capital Markets Day 30 NOVEMBER 2017
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
Slide 3: Agenda
Agenda Time (UK) Topic Presenter 9M 2017 Results for Rocket Internet & Selected Peter Kimpel 09:00 – 09:45 Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
Slide 4: Rocket Internet's Selected Companies at a Glance
Rocket Internet’s Selected Companies at a Glance 9M 2016 9M 2017 Improvement (EURb) 2.09 Aggregate 1.60 GMV(1) YoY Growth: 30% (EURb) 1.85 Aggregate 1.45 Revenue YoY Growth: 28% (%) Aggregate Adj. EBITDA YoY Improvement: +6.6pp Margin(2,3) (12) (19) (EURb) Aggregate Adj. EBITDA(3) YoY Reduction: EUR
Slide 5: Continued Increase in Revenue Across Selected Companies
Continued Increase in Revenue Across Selected Companies EURm 700 600 500 400 YoY Growth (Q3 2017 / Q3 2016) 300 +26% 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Aggregate financials include: HelloFresh, Jumia, Westwing, Home24 and GFG (excluding Namshi).
Slide 6: Continued Improvements in Adj. EBITDA Across Selected Companies
Continued Improvements in Adj. EBITDA Across Selected Companies EURm Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 0 (50) (100) (150) (200) Aggregate financials include: HelloFresh, Jumia, Westwing, Home24 and GFG (excluding Namshi). Source: Unaudited consol
Slide 7: Continued Increase in Revenue
Continued Increase in Revenue EURm 163 3 24 1,852 1,800 214 1,500 1,449 1,200 900 600 300 0 9M 2016 Food & Groceries Fashion(1) General Merchandise Home & Living 9M 2017 Source: Unaudited consolidated financial information based on IFRS and management reports of HelloFresh, GFG, Jumia, Westwing and
Slide 8: Continued Topline Growth
Continued Topline Growth Topline(1) Growth 9M 2016 – 9M 2017 Regional businesses of GFG 60% 49% 42% 40% 32% 29% 27% 22% 19% 20% 10% 4% 0% Overall weighted average Food & General Home & Living Groceries Fashion(2) Merchandise Source: Unaudited consolidated financial information based on IFRS and mana
Slide 9: Adj. EBITDA Margins Improved Significantly at Selected Companies
Adj. EBITDA Margins Improved Significantly at Selected Companies Margin Improvement +5pp +7pp +9pp +5pp +10pp (1) (1) (2) Adj. EBITDA Margin (4%) (9%) (9%) (10%) Total (10%) (12%) (15%) (17%) (19%) Total (19%) Adj. EBITDA (34%) margin improvement (9M 2017 / 9M 2016) Adj. EBITDA Margin 9M 2016 (43%)
Slide 10: Losses Reduced as Companies Scale
Losses Reduced as Companies Scale EURm (1) (2) Total (8) (16) (18) (35) (66) (64) (76) (81) (77) (103) (247) Adj. EBITDA 9M 2016 in EURm (296) Adj. EBITDA 9M 2017 in EURm Source: Unaudited consolidated financial information based on IFRS and management reports of HelloFresh, GFG, Jumia, Westwing and
Slide 11: Value Crystallization: HelloFresh Key IPO Figures
Value Crystallization: HelloFresh Key IPO Figures IPO offer price IPO Valuation2 Company IPO Proceeds2 €10.25 €1.6b Rocket Economic Uplift on First Ownership1 Trading Day €277m (€318m)3 44% 3% Note(s): 1. Shareholdings post IPO (non-f/d) and pre Greenshoe. 2. Pre exercise of Greenshoe option. 3. Ass
Slide 12: Global Fashion Group (GFG)
Global Fashion Group (GFG) 9M 2017 Revenue EURm (1) 800 767 700 600 500 400 283 300 257 226 200 126 100 0 (deconsolidated as of Q3 2017) Source: GFG’s unaudited consolidated financial information based on IFRS and management reports. Please refer to the appendix for more information on the figures a
Slide 13: GFG Consolidated
GFG Consolidated (excl. Jabong and Namshi) Q3 Q3 9M 9M EURm Key Performance Drivers 2016(2) 2017(2) 2016(2) 2017(2) Revenue 215.6 256.4 604.3 767.0 Financial % Growth YoY 18.9% 26.9% • Q3 2017 Net Revenue and NMV for the Group was Euro 256.4m and Euro 265.1m respectively. Gross Profit 85.0 98.9 241.
Slide 14: Lamoda
Lamoda Q3 Q3 9M 9M EURm Key Performance Drivers 2016 2017 2016 2017 Financial Revenue 73.0 88.3 198.6 283.0 • Q3 2017 NMV grew by 12.7% on a constant currency basis, to Euro 83.6m. Net revenue grew to Euro 88.3m in the third quarter, an increase of 16.7% on a constant currency % Growth YoY (FX neutr
Slide 15: Dafiti
Dafiti Q3 Q3 9M 9M EURm Key Performance Drivers 2016 2017 2016 2017 Financial Revenue 80.1 92.2 215.9 256.8 • Net revenue of Euro 92.2m in the quarter, representing 19.5% growth on a constant currency basis, and 15.1% in absolute Euro terms – an acceleration from previous % Growth YoY (FX neutral)(1
Slide 16: Zalora & The Iconic
Zalora & The Iconic Q3 Q3 9M 9M EURm 2016 2017 2016(2) 2017 Key Performance Drivers Revenue 61.2 75.3 185.7 226.4 Financial • NMV and Net revenue continued to accelerate for Zalora and The Iconic, with constant % Growth YoY currency growth of 33.4% and 28.5% respectively in Q3 2017. On an absolute E
Slide 17: Namshi (not included in GFG Financials)
Namshi (not included in GFG Financials) Q3 Q3 9M 9M EURm 2016 2017 2016 2017 Key Performance Drivers Financial Revenue 34.4 45.7 101.4 125.9 • In Q3 2017, Net revenue and NMV continued to grow at 43.0% and 43.5% respectively, on a constant currency basis, in light of the removal of the Saudi Arabian
Slide 18: Jumia
Jumia Q3 Q3 9M 9M EURm Key Performance Drivers 2016 2017 2016 2017 GMV(1) 54.1 91.8 178.2 235.9 Financial % Growth YoY 69.7% 32.4% • Significant GMV growth of 69.7% in Q3 2017 to EUR 91.8m from EUR 54.1m in Q3 2016 (on constant currency basis 96% growth). Revenue 16.6 19.8 54.4 57.3 • Robust YoY top
Slide 19: Westwing
Westwing Q3 Q3 9M 9M EURm 2016 2017 2016 2017 Key Performance Drivers Revenue 55.9 58.1 173.8 180.7 Financial % Growth YoY 4.0% 4.0% • Continued revenue YoY growth in Q3 2017 of 4.0% from EUR 55.9m to EUR 58.1m. • Continued focus on efficiency improvements resulting in significant adj. EBITDA margin
Slide 20: Home24
Home24 Q3 Q3 9M 9M EURm Key Performance Drivers 2016 2017 2016 2017 Revenue 54.3 63.2 177.8 195.0 Financial % Growth YoY 16.4% 9.7% • Accelerated revenue YoY growth in Q3 2017 of 16.4%, from EUR 54.3m to EUR 63.2m. • Further improvement in gross margin from 42.1% in Q3 2016 to 44.4% in Q3 2017 Gross
Slide 21: 9M 2017 Results Rocket Internet SE – Consolidated IFRS Income Statement
9M 2017 Results Rocket Internet SE – Consolidated IFRS Income Statement EURm 9M 2016 9M 2017 • Revenue decline is due to a reduction of services rendered to network companies as well as deconsolidations, sales (La Nevera Roja and Pizzabo in early 2016) or discontinuation of Revenue 39.5 27.8 previou
Slide 22: 9M 2017 Results Rocket Internet SE – Consolidated IFRS Balance Sheet
9M 2017 Results Rocket Internet SE – Consolidated IFRS Balance Sheet Assets Dec 31 Sep 30 Equity and Liabilities Dec 31 Sep 30 EURm 2016 2017 EURm 2016 2017 Non-current assets Equity Property, plant and equipment 3.5 2.9 Subscribed capital 165.1 165.1 Intangible assets 2.1 8.9 Treasury shares 0.0 (0
Slide 23: Strong Cash Reserves
Strong Cash Reserves Cash at Operating Companies Cash at Rocket Internet SE as of October 31, 2017 as of October 31, 2017 EUR 1.5b EUR 1.2b Gross Cash Net Cash (3) c. EUR 1.0b(1) EUR 1.9b EUR 1.6b (Selected Companies and Regional Internet Groups(2)) Gross Cash(3) Net Cash(4) Source: Unaudited manage
Slide 24: Financial Calendar
Financial Calendar Date Event April 13, 2018 FY 2017 Results for Rocket Internet & Selected Companies May 29, 2018 Q1 2018 Results for Rocket Internet & Selected Companies June 8, 2018 FY 2017 Annual General Meeting September 20, 2018 H1 2018 Results for Rocket Internet & Selected Companies 9M 2018
Slide 25: Agenda
Agenda Time (UK) Topic Presenter Peter Kimpel 09:00 – 09:45 9M 2017 Results for Rocket Internet & Selected Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
Slide 26: What We are and What We Stand for
What We are and What We Stand for Incubation Setup and establishment of business models in Europe and emerging markets Scale Equity & Debt Identification Sustainable Identification of Growth Capital Support of growth Value promising business models through operational Generation support and/or capit
Slide 27: We Have Delivered
We Have Delivered Cash of EUR 1.6bn and largest European Growth Fund Prime standard, Simplification of company structures (GFG) 7 Financial Crystallized Flexibility value of more More than a than EUR 10bn 6 billion euros from blue chip Complexity investors Reduction Systematically reduced Exciting n
Slide 28: Food Focus Strategy Paid Off
1 Investment Focus Food Focus Strategy Paid Off Delivery Hero IPO 13% EUR 6.6bn June Rocket Market Cap(1) 2017 Shareholding(3) HelloFresh IPO 44% EUR 1.6bn November Rocket Market Cap(2) 2017 Shareholding(4) Source: Source: Delivery Hero and HelloFresh Investor Relations, Reuters. Note(s): 1. Based o
Slide 29: Profitability Has Significantly Improved
2 Improving Profitability Profitability Has Significantly Improved EURm (1) (2) Other (3) Total Discontinued 0 (11) (24) (50) (75) (86) (85) (108) (102) (160) (330) (216) (434) Adj. EBITDA 2015 in EURm (1,021) Adj. EBITDA 9M 2017 Annualized in EURm Source: Unaudited consolidated financial informatio
Slide 30: Exciting New Companies and Incubations: Selected Examples
3 New Companies Exciting New Companies and Incubations: Selected Examples • Direct to Consumer • Digital Freight Forwarding • B2B Digital Freight Forwarding • Luggage Brand (Shipping) (Road) • B2B Catering • SME Factoring Platform • B2B SaaS • Marketplace • HR Management Tool Source: Rocket Internet
Slide 31: Outside Blue Chip Investor Validation
4 Validation by Blue Chip Investors Outside Blue Chip Investor Validation EUR1 ~1bn USD2 ~2bn EUR ~300m USD ~500m Source: Publicly disclosed information. Note(s): 1. Initial Naspers investment of 387m EUR in May 2017 and 660m EUR (for an additional stake of 13% in Delivery Hero from Rocket) in Septe
Slide 32: More Than EUR 10bn Value Crystallization for Rocket and Its Co-Investors
5 Value Crystallization More Than EUR 10bn Value Crystallization for Rocket and Its Co-Investors Sale to IPO IPO June 2017 November 2017 USD 3.2bn EUR 6.6bn EUR 1.6bn Exit Valuation Market Capitalization(1) Market Capitalization(2) Source: Source: Delivery Hero and HelloFresh Investor Relations, Reu
Slide 33: Decreasing Level of Complexity
6 Complexity Reduction Decreasing Level of Complexity 2015 Entry Standard 2017 Prime Standard Privately Held Public Equity Privately Held Source: Rocket Internet. 33
Slide 34: Financial Strength and Flexibility
7 Financial Flexibility Financial Strength and Flexibility Net Cash Positions and Public Stock in EUR bn 4.0 3.8 Net Cash(1) Public Stock(2) 3.5 3.0 2.9 2.2 2.5 1.3 2.0 1.5 1.3 1.3 1.2 1.1 1.1 1.1 1.0 1.6 1.6 1.3 1.3 1.2 0.5 1.1 1.1 1.1 0.0 Reporting Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q
Slide 35: The Future: Multi-Dimensional Expansion of Investment Strategy
The Future: Multi-Dimensional Expansion of Investment Strategy 1 Stage Expansion (Lifecycle Investing) 2 Sector Expansion 3 Regional Expansion 35
Slide 36: We Learn from Being Inside the Company and Increase our Investment Over Time
1 Lifecycle Investing We Learn from Being Inside the Company and Increase our Investment Over Time Seed Series A Series B Series C Growth Adult Young adult Teenager Child Baby Source: Rocket Internet. 36
Slide 37: Case Study Lifecycle Investing: HelloFresh
1 Lifecycle Investing Case Study Lifecycle Investing: HelloFresh Rocket investment, EUR 250k 250k 30m 178m Primary Primary Secondary Primary/Secondary 1,000 870 750 597 500 305 250 69.6 2.3 14.2 0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Annualized HelloFresh Revenue, EUR (m) Source: Rocket I
Slide 38: We Invest in Low-Risk Business Models
2 Sector Expansion We Invest in Low-Risk Business Models “Beer & Burger Models” Proven Focus on Basic Limited Scalable Peer Models Needs Competition Technology Minimize Minimize Minimize Minimize Business Model Competition Demand Risk Scalability Risk Risk Risk Source: Rocket Internet. 38
Slide 39: Leveraging Core Know-How as Basis for Sector Expansion
2 Sector Expansion Leveraging Core Know-How as Basis for Sector Expansion Customer Data & Logistics/ Product Technology Acquisition Analytics Fulfilment Full Stack Companies Specific Knowledge Source: Rocket Internet. 39
Slide 40: Rocket Core Focus and Expansion
2 Sector Expansion Rocket Core Focus and Expansion Rocket Core Focus B2C Expansion Broadening Core Focus Consumer Tech Consumer Tech 2.0 Travel Tech Food Tech Direct to Consumer Aggregators Expansion with New Focus Areas Property Fin Tech B2B SaaS Tech Source: Rocket Internet. 40
Slide 41: Venture Capital Is Still Concentrated in Only Two Countries
3 Regional Expansion Venture Capital Is Still Concentrated in Only Two Countries US & China World (except US & China) Global Venture Capital(1) 82% 18% Global GDP 2016(2) 33% 67% Global Middle Class Spending in 2015(3) 25% 75% Global Share of Population(4) 23% 77% Source: 1. EY Global Venture Capita
Slide 42: We Have Built a Unique Investment Platform with Truly Global Reach
3 Regional Expansion We Have Built a Unique Investment Platform with Truly Global Reach to Capture the Next Technology Investment Opportunity Investment Offices LONDON BERLIN SAN FRANCISCO PARIS DUBAI JAKARTA SAO PAOLO 7 >100 40,000 5 Investment Offices Portfolio Companies People in Portfolio Region
Slide 43: Logic for Expansion into the US
3 Regional Expansion Logic for Expansion into the US – Leveraging Regional Know- How both Ways Source: Rocket Internet. 43
Slide 44: Expansion Europe to US – HelloFresh Example
3 Regional Expansion Expansion Europe to US – HelloFresh Example 2014 – US Entry Success in Numbers Development of US Revenues EUR 2 US East Coast million to West Coast 600 526 1 Europe to US East Coast 3 US West Coast 400 to Midwest CAGR +264% 287 Leveraging European Core Know-How 200 104 Logistics
Slide 45: Agenda
Agenda Time (UK) Topic Presenter Peter Kimpel 09:00 – 09:45 9M 2017 Results for Rocket Internet & Selected Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
Slide 46: The Leading E-commerce Ecosystem in Africa
The Leading E-commerce Ecosystem in Africa November 2017
Slide 47: The Jumia mission: Leverage the Internet to improve everyday life in Africa
The Jumia mission: Leverage the Internet to improve everyday life in Africa Providing New Services Enabling SMEs to Grow Creating Sustainable Impact Jumia provides world-class, Jumia takes the entire African Jumia creates jobs and skills that affordable and convenient economy online, enabling SMEs e
Slide 48: Jumia is e-commerce in Africa
Jumia is e-commerce in Africa: One transaction or lead every two seconds Jumia Ecosystem Global Consumer Brands 1.3b Consumers Merchants in Africa1 Hotels Sales Agents 17m Shops SMEs and Merchants in Car Dealers Africa2 Recruiters Real Estate Agents Restaurants Source: 1United Nations, 2IFC 3
Slide 49: Jumia is an ecosystem of marketplaces with integrated logistics and payment enablers
Jumia is an ecosystem of marketplaces with integrated logistics and payment enablers Marketplace Logistics & Fulfillment Jumia 4.4m Services Transactions 9M2017 4.6m Packages handled 9M2017 Jumia Marketplace 62.0% Payment & Financial Transaction Growth 9M2017 Services vs. 9M2016 Jumia Pay Jumia Tran
Slide 50: Jumia's leadership position is driving strong transaction growth at scale
Jumia’s leadership position is driving strong transaction growth at scale Transactions in millions „… the continent’s first unicorn …“ – The Financial Times, February 8, 2016 Q4 4,3 4,1 9M 4.4 1,5 0.5 0.1 2012 2013 2014 2015 2016 2017 5
Slide 51: Jumia is setting the benchmark for e-commerce at scale in Africa
Jumia is setting the benchmark for e-commerce at scale in Africa GMV of our strongest day x 365 >7,000,000,000 EUR 6
Slide 52: Jumia: reasons driving long-term success
Jumia: 6 reasons driving long-term success 1. Large untapped Pan-African market opportunity 2. Undisputed African leader 3. Proprietary Ecosystem with integrated enablers 4. Scalable technology platform 5. Highly localized execution 6. Multiple drivers for long-term growth 7
Slide 53: Jumia's market opportunity is the rapidly growing African retail market
Jumia’s market opportunity is the rapidly 1 Large Pan-African growing African retail market Market Opportunity 11% 2012-2017 Growth 35% 2012-2017 Growth €2.7tr €450bn African Western European Retail Market Retail Market Source: Euromonitor 8
Slide 54: Key trends are progressively unleashing the potential of e-commerce in Africa
Key trends are progressively unleashing the 1 Large Pan-African potential of e-commerce in Africa Market Opportunity Online retail just starting Large number of Internet users Very high mobile affinity <1% 388m 61% Online retail penetration in Africa5 African population with Internet Share of mobile
Slide 55: Jumia is the undisputed leader in Africa
Jumia is the undisputed leader in Africa 2 Undisputed African Leader Jumia Countries Jumia #1 Africa #1 Countries #1 #1 Population1 1246m 54% #1 #1 #1 #1 Internet 388m 77% #1 Users1 #1 #1 #1 Mobile 75% 630m Subscribers2 GDP3 €2tr 69% Marketplaces & Classifieds #2a Classifieds only Source: Jumia Mana
Slide 56: Jumia is one of the most visible online destinations in Africa
Jumia is one of the most visible online 2 Undisputed destinations in Africa African Leader Top websites across all categories per country (October 2017) Nigeria Ivory Coast Cameroon Ghana Morocco Source: similarweb.com 11
Slide 57: Jumia is among the most popular and trusted brands in Africa
Jumia is among the most popular and trusted 2 Undisputed brands in Africa African Leader Searches for Brand Names on Google in Nigeria Last twelve months as of 24/11/2017 Jumia Samsung MTN Airtel Source: Google Trends 12
Slide 58: Jumia's Pan-African scope provides unique competitive advantages
Jumia’s Pan-African scope provides unique 2 Undisputed competitive advantages African Leader 1 2 Jumia Countries Natural Partner for Economies of Scale Global Brands 2 6 Best Practice Local Strategic Sharing Partnerships 4 5 Diversification & Catalyst for Resilience Cross-Border Trade 13
Slide 59: Jumia has built a proprietary ecosystem that rests on four pillars
Jumia has built a proprietary ecosystem that 3 rests on four pillars … Proprietary Ecosystem Jumia Ecosystem Jumia Services Jumia Marketplace Jumia Pay Ecosysten Services 14
Slide 60: Following best practices established by global e-commerce leaders
… following best practices established by global 3 Proprietary e-commerce leaders Ecosystem E-commerce Core ✓ Logistics ✓ ✓ Payment & Financial Services ✓ Ecosystem Services
Slide 61: Jumia marketplace: Providing a world-class experience for buyers
Jumia marketplace: Providing a world-class 3 Proprietary experience for buyers… Ecosystem 16
Slide 62: Jumia marketplace: powerful tools for merchants and SMEs
Jumia marketplace: … and powerful tools for 3 Proprietary merchants and SMEs Ecosystem 17
Slide 63: Jumia Marketplace: Constantly growing network of merchants and assortment
Jumia Marketplace: Constantly growing network 3 Proprietary of merchants and assortment Ecosystem Active Merchants Assortment In thousands In thousands 38.4 2511 29.5 15.5 570 6.5 53 69 83 0.3 0.4 2 2012 2013 2014 2015 2016 9M2017 2012 2013 2014 2015 2016 9M2017 Notes: Not including discontinued cou
Slide 64: Trusted relationships with the world's leading consumer brands
Jumia Marketplace: trusted relationships with 3 the world’s leading consumer brands Proprietary Ecosystem Electronics Brands Fashion Brands FMCG Brands Food Brands 19
Slide 65: Jumia Marketplace: share of NMV has nearly tripled since 2014
Jumia Marketplace: share of NMV has nearly 3 Proprietary tripled since 2014 Ecosystem NMV by Type 25% Retail 32% 58% 73% 86% 100% 75% Marketplace 68% 42% 27% 14% 0% 2012 2013 2014 2015 2016 9M2017 20
Slide 66: Jumia Services: the leading e-commerce fulfillment and express delivery service
Jumia Services: the leading e-commerce 3 Proprietary fulfillment and express delivery service in Africa Ecosystem Integrated Logistics Solutions by Jumia Services 1 2 3 Warehousing Inbound Deliveries Picking & Packing 4 5 6 Last-Mile & Payment Tracking Return Handling 21
Slide 67: Jumia Services is the leading Logistics Platform in Africa
3 Proprietary Ecosystem Jumia Services is the leading Logistics Platform in Africa 4.6m +120 90% Packages handled 9M2017 Logistics partners Cash-on-delivery coverage
Slide 68: Jumia Pay: payment and lending solutions for consumers and SMEs
Jumia Pay: payment and lending solutions for 3 Proprietary consumers and SMEs Ecosystem eWallet Support for all relevant 1-Click Rapid Payment High payment methods Payments Processing Security Lending solutions Paperless Loan Credit Scoring Know-Your-Customer Payment Application Processing 23
Slide 69: Jumia Pay: world-class payment and financial services experience
Jumia Pay: world-class payment and financial 3 Proprietary services experience for consumers Ecosystem 24
Slide 70: Ecosystem services enable Jumia to capture a large share of the customer lifecycle
Ecosystem services enable Jumia to capture & 3 Proprietary retain a large share of the customer lifecycle Ecosystem Travel and Hotel Online Food Delivery Real Estate Booking Marketplace Marketplace Classifieds 25,000+ 5,000+ 4,000+ Hotels Restaurants Real Estate Agents Car Classifieds Job Classified
Slide 71: Jumia's ecosystem rests on a scalable and proprietary technology platform
Jumia’s ecosystem rests on a scalable and 4 Scalable Technology proprietary technology platform Platform TECHNOLOGY PLATFORM Payments & Customer Customer Shop Business Logistics Infrastructure Lending Growth Engagement Management Intelligence Fleet Web & Native Merchandising Real-time Mobile Wallet
Slide 72: Team Jumia: 3,800 people
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Slide 73: Jumia has strong and strategic shareholders with unique Africa expertise
Jumia has strong and strategic shareholders 5 Highly Localized with unique Africa expertise Execution Jumia Shareholders 28
Slide 74: Leveraging partnerships with mobile network operators
Leveraging partnerships with mobile network 5 Highly Localized operators for distribution and sales Execution Footprint of our mobile partners Brand Building In-Store Promotions combining 280m subscribers Mobile Payment Recognition Program E-Store Digital Services MTN Orange Tigo Orange-MTN common c
Slide 75: Jumia has a multi-dimensional growth opportunity
Jumia has a multi-dimensional growth 6 Multiple Drivers for opportunity Long Term Growth Selective Mergers & Acquisitions Launch new ecosystem services Launch new enablers Launch new Launch marketplace Grow existing categories marketplaces countries and in additional segments countries 30
Slide 76: ‘smart Phones
‘smart Phones ‘SPARK PLUS K@- DUALS. #42500 44088 JUMIA
Slide 77: Agenda
Agenda Time (UK) Topic Presenter Peter Kimpel 09:00 – 09:45 9M 2017 Results for Rocket Internet & Selected Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
Slide 78: Home24: Building the European Category Leader in Home & Living E-commerce
HOME24: BUILDING THE EUROPEAN CATEGORY LEADER IN HOME & LIVING E-COMMERCE NOVEMBER, 2017 1
Slide 79: Home24: The European Market Leader and Go-To-Destination for Home & Living
HOME24: THE EUROPEAN MARKET LEADER AND GO-TO- DESTINATION FOR HOME & LIVING ONLINE SHOPPING home24 at a glance +€500bn global addressable market, 1 Huge market third largest consumer vertical 2 Significant scale Launched in 2010, €243m net sales 2016 3 Dynamic growth +65% sales CAGR 2011-2016 4 Cons
Slide 80: Home24 is today the largest pureplay e-commerce platform for Home & Living in Europe
HOME24 IS TODAY THE LARGEST PUREPLAY E-COMMERCE PLATFORM FOR HOME & LIVING IN EUROPE Net Sales in EURm 244 2011 2012 2013 2014 2015 2016 3
Slide 81: Massive Addressable Market
MASSIVE ADDRESSABLE MARKET… Total addressable market1 by country Europe – Total market €185bn Latin America – Total market €29bn 44 78 €134bn 15 14 €14bn 18 Rest of Rest of 15 LatAm Europe 5 8 8 10 Home & living is the third largest consumer category with an addressable market of over €577bn globall
Slide 82: Benefiting from Attractive Industry Economics
…BENEFITING FROM ATTRACTIVE INDUSTRY ECONOMICS… Home & Apparel & Consumer Toys & Beauty & Living Footwear Electronics Games Personal Care No manufacturer/ supplier brands; highly fragmented Huge private label opportunity No fashion risk, no end-of-season discounting Limited seasona
Slide 83: Offering Huge Potential for Disruption Through Online Concepts
…OFFERING HUGE POTENTIAL FOR DISRUPTION THROUGH ONLINE CONCEPTS Online penetration levels of various …the huge potential of Home & verticals hint to… Living online shopping Illustrative Toys & 38,7% Games Total market €577bn Consumer 23,4% €113bn electronics @ 19.5% online penetration Apparel & 13,5
Slide 84: Thinking of Customers in Home & Living Today
THINKING OF CUSTOMERS IN HOME & LIVING TODAY – DOES THIS LOOK FAMILIAR TO YOU? 7
Slide 85: Traditional Brick & Mortar Retail – Location, Location, Location
TRADITIONAL BRICK & MORTAR RETAIL – LOCATION, LOCATION, LOCATION AS THE ROOT OF ALL EVIL Home & Living spendings Home & Living retail sqm in Germany over time Germany over time1 +50% +5% 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 Sqm productivities Germany Sqm productivities Germany over time
Slide 86: Our Mission: We Change the Way People Shop for Home & Living
OUR MISSION: WE CHANGE THE WAY PEOPLE SHOP FOR HOME & LIVING Convenience Choice Shopping Experience Living room > Bedroom > Dining room > Bathroom > Hall > Kitchen & bar > Shop where you want and High degree of choice with more Home & Living is shopped whenever you want than 100,000 curated SK
Slide 87: Large Selection and Fast Delivery Through Combination of Marketplace & Stock
HOME24 OFFERING A LARGE SELECTION AND FAST DELIVERY THROUGH COMBINATION OF MARKETPLACE & STOCK The home24 Platform 1 home24 develops private label products internally or buys stock from suppliers, placing large orders for bestsellers Inventory ─ Utilizes data from customers’ shopping habits to acc
Slide 88: Proprietary Technology Backbone Interconnecting & Automating the Value Chain
PROPRIETARY TECHNOLOGY BACKBONE INTERCONNECTING & AUTOMATING THE VALUE CHAIN Factories Suppliers Warehouse Carriers End customers Products Carrier management Global direct EDI Private Label Multi-country supplier network Supplier portal 3rd party Multi-carrier 3rd party carrier Direct model Products
Slide 89: Own-built Technology Platform Empowering Data-driven Solutions
OWN-BUILT TECHNOLGY PLATFORM EMPOWERING DATA-DRIVEN SOLUTIONS Data-driven and tech-enabled approach to identify and address customer needs along the entire value chain Merchandising Sourcing Warehousing Marketing & Sales Delivery Continuous analysis of Global and direct Stocking of Constant
Slide 90: Example Merchandising: Data-driven Private Label Development
EXAMPLE MERCHANDISING: DATA-DRIVEN PRIVATE LABEL DEVELOPMENT TO FILL ASSORTMENT WHITE SPOTS… Eva Padberg Smood KINX ArsManufacti Collection Skøp Loistaa Morteens Studio Copenhagen 13
Slide 91: Own-developed, Award-winning Mattress Brand Smood
…LEADING TO OUR OWN-DEVELOPED, AWARD-WINNING AND TOP-SELLING MATTRESS BRAND SMOOD 14
Slide 92: Example Sourcing: Global, Direct Supplier Network and Q/C Infrastructure
EXAMPLE SOURCING: GLOBAL, DIRECT SUPPLIER NETWORK AND Q/C INFRASTRUCTURE Central & Eastern Europe China & Taiwan Key highlights Upholstery Furniture and accessories Oak, beech wood Metal/chrome, glass, high- gloss, oak, elm, small furniture Pinewood 500+ suppliers 20 countries India Vint
Slide 93: Example Warehousing: Own Operated 60,000 sqm Facility
EXAMPLE WAREHOUSING: OUR MOST RECENT OWN OPERATED 60,000 SQM FACILITY, CENTRALLY SERVING EUROPEAN MARKETS 16
Slide 94: Example Delivery: Dense Outbound Network in Europe & LatAm
EXAMPLE DELIVERY: DENSE OUTBOUND NETWORK IN EUROPE & LATAM, ENABLING FAST & RELIABLE FULFILMENT Europe1 Latin America 6 6 6 6 6 5 1 Greater São Paulo 3 1 2 2 Rio de Janeiro State 4 3 São Paulo Countryside 4 Minas Gerais State 5 South Region 6 Other Initiatives Hub Regional depot (3PL/hybrid) Close
Slide 95: Home24 with Reacceleration of Topline Growth in Q3 2017
HOME24 WITH REACCELERATION OF TOPLINE GROWTH IN Q3 2017, CONTINUING PATH TO BREAK-EVEN EURm Q3 2016 Q3 2017 9M 2016 9M 2017 Key Performance Drivers Revenue 54.3 63.2 177.8 195.0 Financial % Growth YoY 16.4% 9.7% Accelerated revenue growth in Q3 2017 of 16.4% yoy to EUR 63.2m Gross Profit 22.9 28.1
Slide 96: Significant Investments into Customer Centricity, Brand and Platform Scalability
SIGNIFICANT INVESTMENTS INTO CUSTOMER CENTRICITY, BRAND AND PLATFORM SCALABILITY In-time delivery PRODUCT, DELIVERY AND Fabric samples CUSTOMERS SERVICE QUALITY 1 Quality screenings GENRATING TRUE CUSTOMER Supplier delisting SATISFACTION Delivery windows Rebranding INVESTMENT INTO A Pr
Slide 97: Thank You!
THANK YOU! Contact Philipp Kreibohm, philipp.kreibohm@home24.de Marc Appelhoff, marc.appelhoff@home24.de 20
Slide 98: Agenda
Agenda Time (UK) Topic Presenter Peter Kimpel 09:00 – 09:45 9M 2017 Results for Rocket Internet & Selected Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
Slide 99: Building the leading European working capital provider
This document is CONFIDENTIAL - do not copy. Rocket Internet – Capital Markets Day Building the leading European working capital provider Rocket Internet – Capital Markets Day
Slide 100: Disclaimer
Rocket Internet – Capital Markets Day Disclaimer The information contained in this presentation have been researched by us with due care and all and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the available information has been independent
Slide 101: Factoring has seen strong growth of 9% CAGR over last decade
This document is CONFIDENTIAL - do not copy. Rocket Internet – Capital Markets Day Factoring has seen strong growth of 9% CAGR over last decade: Germany, Netherlands, Poland, Austria with double-digit growth Factoring volume in Europe CAGR EUR bn, 2003-16 %, 2007-16 1.593 1.557 16% 1.463 3920 Austri
Slide 102: Top list of German factoring players dominated by banks and specialized providers
Rocket Internet – Capital Markets Day Top 10 list of German factoring players is dominated by banks and specialized providers focusing on large cap clients Top 10 German factoring players EUR bn, 2010-15 2010 2011 2012 2013 2014 2015 TARGO Commercial Finance AG 29,6 36,4 39,3 46,0 49,5 46,4 Postbank
Slide 103: Manual underwriting and data collection cause high operational cost
Rocket Internet – Capital Markets Day Manual underwriting and data collection cause high operational cost, limiting access to smart working capital solutions for SMEs The need for working capital …yet, the offering of traditional is widespread among SMEs… banks doesn’t cater to this need § Liquidity
Slide 104: We built Germany's leading online factoring product
Rocket Internet – Capital Markets Day We built Germany’s leading online factoring product on our cutting edge data and risk infrastructure Our product is targeted at the needs of SMEs ... ... enabled by cutting-edge technology Traditional providers Confidential factoring ✓ ✓ Instant payout ✓ ✓ Singl
Slide 105: Building the core product: Our 5 Key Priorities
Rocket Internet – Capital Markets Day Building the core product OUR 5 KEY PRIORITIES 1 Tech Developed highly scalable tech backbone that runs our risk, fraud and payment systems; conversion optimized UX; complete user onboarding in 7min 2 Risk Built automated SME scoring engine with partner ETL, bas
Slide 106: Strong origination growth within the first months
Rocket Internet – Capital Markets Day Strong origination growth within the first months, even outperforming category leader Marketinvoice Billie vs. Marketinvoice Cumulative origination, since inception (EUR) Growth and outperformance • Strong origination growth: cumulative originations within first
Slide 107: Significant share of larger and older companies shows widespread attractiveness
Rocket Internet – Capital Markets Day Significant share of larger and older companies shows wide- spread attractiveness of our offering to established companies Size of customers Age of customers Active customers, by revenue Active customers, by company age 0- 250k- 500k- 1m- 2.5m- 5m+ 0- 5- 10- 20+
Slide 108: Invoice duration and size are within projected range
Rocket Internet – Capital Markets Day Invoice duration and size are within projected range; releasing the cap on invoice amount will further strengthen unit economics Invoice duration Invoice amount Duration of financed invoices (days) Amount of financed invoices (‘000 EUR) 0- 15- 30- 60- 90+d 0- 2.
Slide 109: We have launched Billie in Germany and are rolling out across key European markets
Rocket Internet – Capital Markets Day We have launched Billie in Germany and are rolling out across key European markets Target markets and operating model Roll-out timeline Hub-and-spoke structure with shared service center in Berlin Start with well-known, easy to access markets 2017 We are startin
Slide 110: Co-founders
Rocket Internet – Capital Markets Day Co-founders Dr. Matthias Knecht Dr. Christian Grobe Co-founder Co-founder 9+ years experience 9+ years experience • Co-founder & MD at Zencap and Funding Circle • Co-founder & MD at Zencap and Funding Circle • Responsible for Risk, Operations, Investors, • Respo
Slide 111: Agenda
Agenda Time (UK) Topic Presenter Peter Kimpel 09:00 – 09:45 9M 2017 Results for Rocket Internet & Selected Companies CFO Oliver Samwer 09:45 – 10:45 Update on Rocket Internet’s Strategy Founder and CEO Dr. Johannes Bruder 10:45 – 11:15 Jumia COO Dr. Philipp Kreibohm Co-CEO 11:15 – 11:45 Home24 Marc
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