Rocket Internet Se · HAM:RKET
Rocket Internet — Investor Day (September 2015)
50 slides from Rocket Internet's investor day presentation, Sep 30, 2015
Slide 1: Agenda
Agenda Time Topic Presenter Part 1 Peter Kimpel 9:00 – 9.45 Proven Winners H1 2015 Financials CFO Rocket Internet Peter Kimpel 9:45 – 10:00 Update LPV and Underlying Assumptions CFO Rocket Internet Oliver Samwer 10:00 – 10:45 Update Rocket Strategy CEO Rocket Internet Path to Profitability – How to
Slide 2: Update Regional Internet Groups
Update Regional Internet Groups
Slide 3: The Leading Internet Group in Africa
The Leading Internet Group in Africa September 2015
Slide 4: Taking the Entire Economy Online
Taking the Entire Economy Online 9,000+ 200+ Taxi Drivers Recruiters 1,400+ 76,000+ Restaurants Listings 900+ 2,000+ Fleet Vehicles Car Dealers 23,000+ m² 12,000+ Warehouse Real Estate Capacity 12,000+ Agents Hotels 3,800+ 113,000+ Brands SMEs 161
Slide 5: A Unique Footprint Across the Entire African Continent
A Unique Footprint Across the Entire African Continent 23 10 90% 1.4 MM 6 countries companies coverage of customers mobile apps (marketplaces total and classifieds) African GDP 162
Slide 6: One Group with 10 Market Leading Companies
One Group with 10 Market Leading Companies… Marketplaces Classifieds #1 online shopping mall 12 countries #1 real estate classifieds 21 countries #1 online shopping community 17 countries #1 vehicle classifieds 7 #1 logistics platform 13 countries countries New #1 hotel booking platform 6 countries
Slide 7: Present in the Most Promising African Countries
… Present in the Most Promising African Countries Tunisia Algeria Uganda Africa AIG Countries Morocco Egypt Ethiopia Target 822 MM Population Senegal 77% Côte d'Ivoire Target Kenya 252 MM 92% Internet Users Ghana Rwanda 92% Nigeria Tanzania Gabon Mozambique Target Mobile $616 MM 75% Cameroon Subscri
Slide 8: Building and Capturing Huge E-commerce Opportunity in Africa
Building and Capturing Huge E-commerce Opportunity in Africa 1 Huge Market: Massive and largely untapped addressable market for e-commerce in Africa 2 Mega Trends: Demographic trends, rising middle class and lack of offline retail drives substantial long-term growth Market Leader: Unique footprint a
Slide 9: Huge and Underpenetrated Addressable Market
Huge Market 1 Huge and Underpenetrated Addressable Market GDP Retail Travel $80 Bn $505 Bn $3.3 Tn 0.3% 2.3% Internet Penetration 2015 Source: Euromonitor 166
Slide 10: Fast Economic Growth Environment
Mega Trends 2 Fast Economic Growth Environment GDP Growth in 2012-2014 % 264 212 36 8 167 10 12 81 21 100 11 11 36 13 24 31 6 20 426 36 14 24 38 10% 9% 7% 7% 7% 7% 6% 6% 5% 5% 5% 5% 5% 5% 4% 3% 4% 3% 3% 3% 2% 2% 2% South Tunisia Mauritius Senegal Uganda Angola Kenya Cameroon Rwanda Nigeria Mozambiqu
Slide 11: Most Rapid Population Increase in the World
Mega Trends 2 Most Rapid Population Increase in the World Million people, 2010–30 (MM) 108 8,306 270 160 312 570 -19 6,905 2010 Africa Asia India N&S America China EU & Japan 2030 CAGR 2.0 1.5 1.0 0.9 0.4 -0.1 0.9 Fast Growing Average-Growing Slow-Growing Source: Population Prospect (The 2012 Revisi
Slide 12: Fast Growing Middle Class and Spending
Mega Trends 2 Fast Growing Middle Class and Spending Growing Middle Class Will Drive More …With Middle Class Spending to Rise Active Costumers in Our Countries… Significantly in The Continent we Address Expected Middle Class Growth by Continent 2020-2030 Expected Middle Class Spending Growth by Cont
Slide 13: Strong Level of Confidence in the African Economy
Mega Trends 2 Strong Level of Confidence in the African Economy Consumer Sentiment on Personal Circumstances and Local Economy (%) 44 45 42 36 36 33 34 34 33 32 29 27 24 23 23 22 I am able to save I am financially better Most people I know I think the economic some of my earnings off today compared
Slide 14: Great Potential for Urbanization
Mega Trends 2 Great Potential for Urbanization 2015 Split between Rural and Urban Population (%) 20 20 18 44 60 67 80 80 82 56 40 33 India Africa China Europe Latin America North America Urban Rural Source: United Nations (Population division) 171
Slide 15: Smartphone Revolution is Accelerating Growth
Mega Trends 2 Smartphone Revolution is Accelerating Growth % of Internet Users Africa 2 Nigeria Smartphone Era 1 42% 39% Desktop 37% Era 33% 28% 24% 20% 19% 18% 16% 16% 15% 13% 11% 9% 8% 5% 6% 6% 7% 3% 4% 4% 1% 2% 2% 1% 1% 0% 0% 0% 1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 16: Africa to Leapfrog Physical Retail
Mega Trends 2 Africa to Leapfrog Physical Retail 2.6bn people in No retail rural areas get Supply is a Competitiveness of infrastructures + access to retail for + bottleneck + Online Retail despite mega cities the first time Underdeveloped offline retail infrastructure combined with growing demand d
Slide 17: Market Leadership in All Key African Countries
Market Leader 3 Market Leadership in All Key African Countries Population GDP (MM) (USD MM) Nigeria 179 546 #1 #1 #1 #1 #1 #1 #1 South Africa 53 411 #1 Jan-2016 Jan-2016 Egypt 86 269 #2 #1 Algeria 38 212 #1 #1 #1 #1 Angola 22 145 #1 #1 Morocco 33 114 #1 #1 #1 #1 Kenya 46 58 #1 #1 #1 #1 #1 #1 Ethiopi
Slide 18: Market Leadership in All Key African Countries (Cont'd)
Market Leader 3 Market Leadership in All Key African Countries (Cont’d) Population GDP (MM) (USD MM) Cameroon 23 32 #1 #1 #1 #1 #1 Zambia 15 28 #1 #1 Uganda 39 25 #1 #1 #1 #1 #1 Gabon 2 21 #1 #1 Mozambique 24 19 #1 #1 Republic of Congo 4 17 #1 #1 Senegal 14 16 #1 #1 #1 #1 Zimbabwe 13 14 #2 Mauritius
Slide 19: Covering The Largest African Urban Areas
Market Leader 3 Covering The Largest African Urban Areas Population Facebook Population Facebook # City Country Presence # City Country Presence (MM) Users (MM) (MM) Users (MM) 1 Lagos 8.0 5.5 11 Giza 2.5 0.9 2 Cairo 7.8 N.A. 12 Nairobi 2.5 2.3 3 Kinshasa 6.3 0.6 13 Dar es Salaam 2.5 1.3 4
Slide 20: #1 in One of The Most Promising Markets – Nigeria
Market Leader 3 #1 in One of The Most Promising Markets – Nigeria 7th most populous country in 2019 Focus on significant market opportunities Largest African economy Focus on significant market opportunities Building global leaders All AIG companies Focus on significantare clearmarket market leaders
Slide 21: Nigeria – Leader in Mobile Internet Traffic
Market Leader 3 Nigeria – Leader in Mobile Internet Traffic Mobile % of Total Internet Traffic by Country, May 2015 Nigeria 76% India 65% Indonesia 57% Poland 52% Turkey 39% Mexico 33% China 30% Colombia 28% Spain 27% Philippines 26% Argentina 25% Korea (Rep.) 25% Viet Nam 24% UK 23% Italy 22% Brazi
Slide 22: Trusted Relationships With Many Brands
Market Leader 3 Trusted Relationships With Many Brands Network of Top International Brands AIG Offers an Entry Point For Many Brands in Africa Launched exclusively on Jumia website in Nigeria in Q4 2014 Now #1 in Nigeria Launched exclusively on Jumia website in Nigeria in May 2015 179
Slide 23: Mobile First Approach is a Key Differentiator
Mobile First 4 Mobile First Approach is a Key Differentiator Mobile Order Share(1) Top 5 countries Country Apr 2015 Tanzania 76% Morocco 53% Uganda 53% Côte d'Ivoire 52% 45% Senegal 47% Mobile Orders Ratio(1) 2x within 14 months Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 A
Slide 24: Emerging Markets are Mobile Markets
Mobile First 4 Emerging Markets are Mobile Markets Global Mobile E-commerce Revenue (Smartphone And Tablets - 2014) US$ Bn 115 94 86 56 9 6 Asia Pacific Africa/Middle East North America Western Europe Latin America Eastern Europe CAGR 99% 111% 49% 82% 108% 60% 10-14 Source: Strategy Analytics, Gartn
Slide 25: AIG Owns The Mobile Homescreen
Mobile First 4 AIG Owns The Mobile Homescreen 61% Mobile traffic(1) 2.6 MM Downloads(2) Buy and Sell Electronics Arrange Delivery and Fashion Buy High-End Electronics and Fashion Order Taxi Book Hotel Order Food Buy and Sell Buy or Rent a House Used Products or an Apartment Find a Job Buy and Sell a
Slide 26: Powerful Mobile Partnerships Driving Customer Acquisition and Retention
Mobile First 4 Powerful Mobile Partnerships Driving Customer Acquisition and Retention Drive the sales MTN Converting SME’s to Internet products through all our Users –They grow, We grow sales channels and network SME Product Sales Leverage our extensive Reward loyal MTN/AIG users Business Intellige
Slide 27: From Online Marketplace / Classifieds to Big Data Company
Technology Platform 5 From Online Marketplace / Classifieds to Big Data Company II. Big Data Cloud Storing All Information I. Source of Information and Data III. Big Data and Predictive Analytics and Data Companies with ~1,500,000+(1) Develop 360 degree customer profiles Listings a. Suggest best pro
Slide 28: Unmatched Logistics Platform
Technology Platform 5 Unmatched Logistics Platform Packages Delivered (1) # > 2.6 MM 1.3 Million Packages Delivered in H1’15 Express Delivery: 29 minutes Delivery Distance: up to 1,650 km Non-Stop Operations Without Delay during the Nigerian fuel crisis > 0.9 MM > 0.2 MM 2013a 2014a 2015e Note: (1)
Slide 29: A Virtuous Ecosystem Hard to Replicate
High Barriers to Entry 6 A Virtuous Ecosystem Hard to Replicate Unique Customer Acquisition Capabilities Unique client base Single customers account Cross-selling Traffic optimization Unrivalled Mobile Presence Single connect button Advertising network AIG world application AIG local application Bes
Slide 30: Unique Access to 144MM Customers Through Partnership with MTN and Tigo
High Barriers to Entry 6 Unique Access to 144MM Customers Through Partnership with MTN and Tigo 1 4 BRAND BUILDING 11 common countries IN STORE PROMOTION 2 5 MOBILE PAYMENT RECOGNITION PROGRAM Senegal Uganda Côte d'Ivoire Rwanda Ghana Tanzania Nigeria Zambia Cameroon 3 6 E-STORE SALES CO-OPERATION R
Slide 31: Significant Footprint Expansion Since Inception
Strong Growth Track Record 7 Significant Footprint Expansion Since Inception 102 78 34 23 23 14 7 7 10 4 6 2 2012 2013 2014 Q1 2015 # of companies # of countries # of operations(2) Number of employees(1) >570 >1,300 >3,000 >4,000 Population in live countries >300m >600m >800m >800m Note: Company log
Slide 32: AIG Is Transforming How Commerce Is Conducted In Africa
AIG Is Transforming How Commerce Is Conducted In Africa And Is The Trusted Partner For The Participants In Its Ecosystem Africa Morocco Algeria Tunisia Egypt Targeting 1Bn 822 MM 2 Transactions(1) of Customer Uganda Ethiopia Senegal Côte d'Ivoire Every Second Ghana Nigeria Gabon Cameroon 252 MM Repu
Slide 33: Update Rocket Platform
4) ROCKETINTERNET Update Rocket Platform
Slide 34: Since IPO: Strong Investment in People, Knowledge and Technology
Since IPO: Strong Investment in People, Knowledge and Technology Technology team grew to c. 250 People Helped hiring >100 engineers and 10 CTOs for our companies 18 additional mobile engineers hired Rocket Tech Summit 2015 Knowledge Launched Pioneer Knowledge Network Skyrocket – Next Generation
Slide 35: Tech Summit Brought Together CTOs from over 70 Rocket Companies in Berlin
Tech Summit Brought Together CTOs from over 70 Rocket Companies in Berlin 192
Slide 36: Speakers from Zalando, Amazon, Google, Facebook, Uber and Best-In-Class Rocket Companies
Speakers from Zalando, Amazon, Google, Facebook, Uber and Best-In-Class Rocket Companies 193
Slide 37: Substantial & On-going Investment into our Technology Platform
Substantial & On-going Investment into our Technology Platform Our next Highly automated generation Technology Platform online advertising 1 company-building management with 2 framework self-learning algorithms Minimized Company Efficient Setup Time Growth of Customer Base at Scale Real-time stream
Slide 38: Skyrocket – The Next Generation Company-building Platform
Skyrocket – The Next Generation Company-building Platform Reduced time Mobile and cost First to launch new 6 1 companies Open 5 Built 2 APIs from ground up for high performance Pluggable Components 4 3 Cloud Native Six new companies launched on Skyrocket in 2015 195
Slide 39: Skyrocket Speeds up Company Building with Out-of-the-Box Modules
Skyrocket Speeds up Company Building with Out-of-the-Box Modules and Partners Integrations Platform Partners Proprietary Modules Data Referral Marketing CRM Automation Warehouse System Payment Marketing Optimization Vendor Backend Integration Proprietary Core Platform Frontend Mobile Apps Backend Ca
Slide 40: Skyrocket Natively Integrated with Amazon Web Services
Skyrocket Natively Integrated with Amazon Web Services Deep Cloud Integration Close Collaboration Cloud-Native Architecture Global Support Automated Training & Certifications Infrastructure Setup Regular Architecture Automated Scaling Reviews Early Access to new Global Security Policies Features 197
Slide 41: Sellercenter – The Leading E-commerce Marketplace System for Emerging Markets
Sellercenter – The Leading E-commerce Marketplace System for Emerging Markets Launched in 2014 Integrated with 82 shop systems in 56 countries Optimized for emerging market requirements Supports drop-shipping and fulfilment by Lazada/Linio/Jumia Integration into vendor systems via open API
Slide 42: Rocket-speed Roll-out with 26 Countries Launches in 6 months
Rocket-speed Roll-out with 26 Countries Launches in 6 months July: Kaymu LAUNCH joins platform June 26: First seller sells 1000 orders in 10 minutes June 20: Dafiti, Lamoda join platform June 15: Mobly goes live May 25: 500.000 products listed May 14: Fulfillment by Lazada launched April 14: First s
Slide 43: Sellercenter is Driving Growth of E-commerce Marketplaces in 15 Rocket Companies
Sellercenter is Driving Growth of E-commerce Marketplaces in 15 Rocket Companies Worldwide 15 2,600,000 56 Companies Active Sellers Countries > 20,000,000 15,000,000 Orders Processed Active Products Listings Up to 6,000,000 65 Euro Daily GMV Engineers 200
Slide 44: Launched Seller App with Real-time Integration into Logistics, Finance and Catalogue Systems
Launched Seller App with Real-time Integration into Logistics, Finance and Catalogue Systems 201
Slide 45: Rocket Advertising Platform – Growing our User Base Efficiently at Scale
Rocket Advertising Platform – Growing our User Base Efficiently at Scale Comprehensive user tracking Real-time Tracking Cutting edge machine learning systems User segmentation Real-time buying Product recommendation Rocket Fraud detection Machine Automation Marketing Learning User level ta
Slide 46: We Target Individual Users with Real-time Bidding Algorithms
We Target Individual Users with Real-time Bidding Algorithms Rocket Advertising Platform 1 2 3 Unique Access to Knowledge Output: Efficient User Bidding Engine and Data Acquisition Close cooperation with Google, Facebook, Twitter due to high Proprietary targeting aggregated spend Bidding optimized
Slide 47: Self Learning Keyword Optimization
Self Learning Keyword Optimization INPUT ALGORITHM OUTPUT High Performance Targeted Ads Search Engine Results Public Databases Flyknit Nike shoes ! @ São Paulo Brazil Rejected Keywords Product Pages Sexy Feet No Shoes Beer & Parties … Competitor Websites Constant Online User Queries 204
Slide 48: People – Knowledge – Technology
Platform Summary: People – Knowledge – Technology People generate market knowledge in >110 countries People Technology enables people to build scalable companies (process automation, business intelligence, Knowledge is built decision support) into technology Platform platforms (Rocket Technology Kno
Slide 49: Summary Remarks
4) ROCKETINTERNET Summary Remarks
Slide 50: Our Mission
Our Mission “We identify and build proven online business models predominantly outside of the US and China that satisfy basic consumer needs mainly across four focus sectors – e-commerce, marketplaces, financial technology and travel” 207