H RESULTS AND BUSINESS UPDATE

Transcription

1 H RESULTS AND BUSINESS UPDATE Strong top line growth of 104% in GMV and margin improvement for Proven Winners Rocket Internet s performance on track and in line with expectations foodpanda grew into the Proven Winners category Travel is a new attractive focus sector for Rocket Internet with TravelBird and Traveloka added to Emerging Stars 7 ventures launched YTD and 3 more models in preparation Continued investment in the Rocket Platform to support growth and expansion of network of companies; in the network of companies now more than 25,000 employees LPV increased by EUR 74 m since IPO Berlin, Germany, 17 th November 2014 During H1 2014, Rocket Internet AG ( Rocket Internet, Rocket, the Company ) continued to capitalize on the significant market opportunity especially in emerging markets through its network of companies, which have been performing in line with expectations. The Proven Winners companies had an average weighted GMV 1 period-over-period growth 2 of 104% in H The Emerging Stars companies grew strongly and achieved a 378% average order growth 3 from H to H Our Proven Winners continue to show strong operating leverage with average EBITDA margin improvement of 12 percentage points in H compared to the full year 2013 EBITDA margins. Rocket Internet s emerging markets food ordering platform foodpanda has rapidly expanded into 29 countries and has achieved leading market positions, among others in India, Russia and South East Asia. It recorded organic growth in gross transaction volume of 429% in H relative to H The Company has decided to move foodpanda from Emerging Stars to Proven Winners, therefore providing investors further disclosure on this exciting high growth business. Rocket Internet announces today the launch of Travel as a new focus sector. The travel sector represents a significant growth opportunity in emerging markets which benefit from a large and growing middle class with increasing travel needs, coupled with low and rapidly 1 Gross merchandise volume. 2 GMV for all Proven Winners except HelloFresh, for which number of servings was used, weighted by H revenues contribution in EUR (converted at average H FX rate). 3 Includes total orders growth for FabFurnish and Zanui; total transactions growth for CupoNation and Paymill; bookings growth for Wimdu; for Zencap, Helpling and Lendico, there are no comparison H numbers available. TravelBird and Traveloka not yet included. 1

2 growing online travel booking penetration, and attractive margins in packaged travel. Travel companies TravelBird, focusing on packaged travel, and Traveloka, a leader in the Indonesian online travel market, have been added to Rocket Internet s Emerging Stars category. The Regional Internet Groups also continue to expand with Africa Internet Group having launched 7 and Asia Pacific Internet Group 6 new country operations. The Rocket Internet platform is well on track to start 10 new companies in 2014, 7 of which have been launched to date and 3 more models are in preparation. Rocket Internet has continued to build out its platform to support the growth in its network of companies. It now employs 25,000 people, an increase of c. 4,500 over June 30 th 2014, across its network of companies. Rocket Internet's in-house developed SellerCenter Platform (marketplace tool) has been rolled out to 7 companies in 46 countries. In addition, we have implemented our proprietary Campaign Factory Platform (Rocket Internet's customer re-engagement tool) at 20 companies across 36 different countries. Finally, Rocket Internet increased its Last Portfolio Valuation ( LPV ) by EUR 74 m since the time of IPO. Oliver Samwer, Founder and Chief Executive Officer of Rocket Internet commented: Rocket Internet has shown a strong performance in the first half of 2014: We are well on track and our Proven Winners performed in line with our expectations. Our network of companies is uniquely positioned to capitalize on the growth of Internet commerce in emerging markets. It is our goal to launch again at least ten new startups in 2015 and continue to invest in our existing companies, our own proprietary technology, our geographic footprint, our infrastructure and processes, and our outstanding people around the globe. H Results Update for Proven Winner companies All Proven Winner companies report now under IFRS as Westwing and Hellofresh have moved from German GAAP to IFRS. GLOBAL FASHION GROUP The emerging markets online fashion businesses which are being combined in the Global Fashion Group continue to show significant progress and we are on track to complete the combination of the businesses by year end. As a result of the merger of all of the fashion companies, the decision was taken to move the financial year end of Jabong, a fashion market leader in India, to December. Jabong s numbers will be reported on this basis going 2

3 forward. DAFITI In H1 2014, Dafiti continued to deliver attractive net revenue growth (+38% vs. H1 2013). This growth was broadly in line with the increase in GMV to BRL 272 m (+31% vs. H1 2013) and above the increase in number of orders to 1.9 m (+26% vs H1 2013). As of end of June 2014, the number of active customers 4 was c.1.8 m. Gross margin improved to 39% in H1 2014, up 3 percentage points relative to H due to improved purchasing as well as inventory and disciplined supplier management. The EBITDA loss was lower in absolute terms with BRL 100 m and the EBITDA margin continued to improve (-38%, up 17 percentage points), also driven by higher marketing efficiency. LAMODA H was characterized by strong net revenue growth (+112% in comparison to H1 2013). This growth was in line with the increase in GMV to RUB 8.7 bn (+124% in comparison to H1 2013) and the increase in number of orders to 1.7 m (+103% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was c. 1.4 m. In terms of profitability, gross margin was 41%, down 2 percentage points relative to H This was driven by an earlier usage of targeted price reductions to achieve higher sellout rates and avoid pricing pressure in Q3. EBITDA margin continued to improve by 19 percentage points from -52% to -33%. With RUB 1.3 bn, the absolute EBITDA loss increased and Lamoda continues to invest in its infrastructure in light of expected future growth. ZALORA H net revenues of EUR 44 m represented 64% of total 2013 net revenues. GMV in the first 6 months of 2014 amounted to EUR 56 m (+44% in comparison to H1 2013) and the number of orders totaled 1.5 m (+61% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was c. 1.2 m. In terms of profitability, gross margin was slightly lower (32%, down 6 percentage point relative to FY 2013) in H due to disciplined inventory management incl. early use of discounts. The absolute EBITDA loss amounted to EUR 33 m with EBITDA margin improving (-76%, up 23 percentage points) relative to FY Number of customers having made at least one order/transaction within the last 12 months before end of period. 3

4 JABONG H was characterized by continued very strong net revenue growth (+187% in comparison to H1 2013). This growth was in line with the increase in GMV to INR 5.1 bn (+195%) and exceeded the growth in number of orders to 3.2 m (+171%) in H relative to H In terms of profitability in H1 2014, the gross margin has trended down to -17%, 4 percentage points lower than in H as a result of the decision to continue to invest in topline growth following the market pressure of higher discounts. The EBITDA loss was with INR 1.6 bn higher in absolute terms but the EBITDA margin continued to improve significantly (-48%, up 66 percentage points compared to H1 2013). NAMSHI Namshi, a leading online fashion player in the Middle East, has continued to show very strong growth in the first half of H net revenues amounted to AED 60 m (+210% in comparison to H1 2013). This growth was in line with the increase in GMV to AED 72 m (+202%) and exceeded the growth in number of orders to 170 k (+187%) in H As of end of June 2014, the number of active customers was 128 k. In terms of profitability in H1 2014, the gross margin improved from an already strong base to 52%, up 1 percentage point relative to H This effect was mainly due to better inventory management, less discounts and a higher share of private label. EBITDA loss decreased in absolute terms to AED 17 m and EBITDA margin improved strongly (-28%, up 97 percentage points compared to H1 2013) mainly as a result of scale effects and higher marketing efficiency. GENERAL MERCHANDISE The financials of the general merchandise companies are characterized by the continuous transition from an ecommerce model of selling mostly own inventory to a marketplace focused model selling 3 rd party goods. The marketplace model of the Rocket Internet companies combines the high unit economics and low risk of that model with their strong logistics and fulfillment expertise. LAZADA Lazada, a leading general merchandise player in South East Asia, performed very strongly and continues to invest in the growth of its differentiated platform. 4

5 Lazada is pursuing the shift to a marketplace driven business model. As marketplace activities are only partially reflected in the net revenue line (i.e. only the commissions received by the merchants are recognized in net revenues), management views GMV as the key metric to judge the topline growth of Lazada. H net revenues of EUR 47 m represent already 83% of total 2013 net revenues. GMV in the first 6 months amounted to EUR 73 m, up 202% in comparison to H1 2013, and the number of transactions totaled 1.8 m (+313% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was c. 1.4 m. Gross margin improved to 9% (up 3 percentage points relative to FY 2013) in H also due to the shift to the marketplace model. Absolute EBITDA loss amounted to EUR 40 m with EBITDA margin improving to -85%, up 4 percentage points relative to FY Lazada has continued to invest strongly in building out its business lines. LINIO Linio has also continued its move to a marketplace model. Similar to Lazada, management believes that the GMV metric best reflects the growth of the business going forward. Linio recorded H net revenues of EUR 21 m while GMV amounted to EUR 33 m, up 80% in comparison to H The number of transactions totaled 0.5 m (+170% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was 0.5 m. In terms of profitability, gross margin has decreased to 6%, down 4 percentage points relative to FY 2013, in H as a result of traditionally higher discounts in the first 6 months of the year. Absolute EBITDA loss amounted to EUR 19 m with EBITDA margin down (-90%, down 19 percentage points) relative to FY 2013 reflecting the continued investment in customer and merchant acquisition. JUMIA Jumia has only recently started to move towards a marketplace model. Management expects GMV to become the most relevant metric to judge topline growth. H net revenues amounted to EUR 21 m which represents already 72% of total 2013 net revenues. GMV totaled EUR 27 m, doubling from H The number of transactions totaled 0.4 m (+150% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was 0.3 m. Gross margin was slightly lower (13%, down 5 percentage points relative to FY 2013) in H as a consequence of a change in product mix. Absolute EBITDA loss amounted to 5

6 EUR 26 m with EBITDA margin slightly down (-127%, down 11 percentage points) relative to FY The EBITDA margin is significantly negatively impacted by an increase in share based compensation expenses. Excluding this item, EBITDA margin would have improved by 31 percentage points. HOME & LIVING HOME24 Home24 expanded its strong market position, benefitting from strong secular tailwinds. H net revenues of EUR 59 m represent already 64% of total 2013 net revenues. GMV in the first 6 months amounted to EUR 69 m (+43% in comparison to H1 2013) and the number of orders totaled 0.4 m (+37% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was 0.5 m. During H1 2014, gross margin has improved to 42% (up 3 percentage points relative to FY 2013) due to scale effects and higher share of direct import sourcing as well as increased private label sales. As Home 24 continues to invest in strong growth and customer acquisition, its absolute EBITDA loss amounted to EUR 14 m with EBITDA margin improving considerably (-24%, up 17 percentage points) relative to FY WESTWING With the move to IFRS, 2013 net revenues and EBITDA loss are now EUR 112 m and EUR 46 m respectively. H net revenues of EUR 76 m represent already 68% of total 2013 net revenues. GMV in the first 6 months amounted to EUR 85 m (+51% in comparison to H1 2013) and number of orders totaled 0.9 m (+74% in comparison to H1 2013) in H As of end of June 2014, the number of active customers was 0.6 m. In terms of profitability, gross margin in H has improved to 43%, up 3 percentage points relative to FY 2013 due to scale effects and Westwing s even closer cooperation with its network of more than 3,000 suppliers. Westwing continues to invest in the significant growth potential of its markets. Absolute EBITDA loss amounted to EUR 27 m with EBITDA margin continuing to improve to -35%, up 6 percentage points relative to FY

7 FOOD & GROCERIES HELLOFRESH Across its countries, HelloFresh continues to perform very strongly and H net revenues of EUR 22 m represent already 153% of total 2013 net revenues. Number of servings delivered in the first 6 months amounted to 3.9 m (+369% in comparison to H1 2013) in H The number of active subscribers 5 increased to c. 81 k by the end of June In terms of profitability, absolute EBITDA loss amounted to EUR 4 m with EBITDA margin improving considerably (-18%, up 27 percentage points) relative to FY FOODPANDA For a food delivery marketplace, gross transaction volume is the most relevant topline metric to look at. In H1 2014, gross transaction volume amounted to EUR 9 m, up 429% compared to the same period in Pro forma for the acquisition of DeliveryClub, the Russian market leader, food deliveries worth EUR 27 m were transacted on foodpanda s platforms during H The combined business recorded 1.34 m orders in H and its network of partners included 13.3 k restaurants as of June 30, In terms of profitability, foodpanda has generated a gross profit of EUR 1.0 m in H1 2014, representing a margin of 84%. Absolute EBITDA loss amounted to EUR 11 m. For a detailed overview of all Proven Winners H financials, please see the appendix or visit our pressroom. 5 Number of people subscribed to services and having ordered at least once during the last three months. 7

8 APPENDIX GLOBAL FASHION GROUP DAFITI Key Financials (BRL m) 2013 H H Net revenues Growth % 38.3% Gross profit Margin % 34.1% 36.4% 39.2% EBITDA Margin % -49.0% -55.5% -38.4% Capex % of net revenues 5.4% 5.0% 7.1% Net working capital Cash position GMV 4 (BRL m) Growth % 30.7% Total orders Growth % 25.7% Total customers Growth % 68.4% Active customers (LTM) Growth % 27.0% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of BRL m; H1 2013: loss of BRL m; H1 2014: loss of BRL m) plus (ii) depreciation of property, plant and equipment (2013: BRL 2.3 m; H1 2013: BRL 1.4 m; H1 2014: BRL 1.9 m) plus (iii) amortization of intangible assets (2013: BRL 0.5 m; H1 2013: BRL 0.2 m; H1 2014: BRL 0.2 m). EBITDA includes share based payment expense that amounted to BRL 4.0 m in 2013, BRL 3.1 m in H and BRL 6.0 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: BRL 16.2 m; H1 2013: BRL 9.1 m; H1 2014: BRL 9.6 m) plus (ii) acquisition of intangible assets (2013: BRL 6.6 m; H1 2013: BRL 0.3 m; H1 2014: BRL 8.8 m) (3) Net working capital is calculated as (i) inventories (December 31, 2013: BRL 74.5 m; June 30, 2013: BRL 93.1 m and June 30, 2014: BRL m) plus (ii) trade and other receivables (December 31, 2013: BRL 29.1 m; June 30, 2013: BRL 24.7 m and June 30, 2014: 49.7 m) minus (iii) trade and other payables (December 31, 2013: BRL m; June 30, 2013: BRL m and June 30, 2014: BRL m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies), including value of vouchers. (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period. (6) Number of customers that have made at least one order as defined in total orders. (7) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period. 8

9 LAMODA Key Financials (RUB m) 2013 H H Net revenues 5, , ,802.6 Growth % 111.8% Gross profit 2, ,558.9 Margin % 39.6% 43.0% 41.0% EBITDA 1-1, ,261.3 Margin % -37.3% -52.4% -33.2% Capex % of net revenues 4.9% 5.5% 4.9% Net working capital Cash position 2, ,695.7 GMV 4 (RUB m) 11, , ,671.8 Growth % 123.6% Total orders Growth % 102.7% Total customers Growth % 131.6% Active customers (LTM) Growth % 98.0% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of RUB 1,982.7 m; H1 2013: loss of RUB m; H1 2014: loss of RUB 1,329.7 m) plus (ii) depreciation of property, plant and equipment (2013: RUB 47.0 m; H1 2013: RUB 15.1 m; H1 2014: RUB 58.6 m) plus (iii) amortisation of intangible assets (2013: RUB 14.7 m; H1 2013: RUB 6.5 m; H1 2014: RUB 9.8 m). EBITDA includes share based payment expenses of RUB 37.9 m in 2013, RUB 16.5 m in H and RUB 25.3 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: RUB m; H1 2013: RUB 71.9 m; H1 2014: RUB m) plus (ii) acquisition of intangible assets (2013: RUB 59.3 m; H1 2013: RUB 26.9 m; H1 2014: RUB 19.3 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: RUB 1,084.3 m; June 30, 2014: RUB 1,103.1 m) plus (ii) trade receivables (December 31, 2013: RUB m; June 30, 2014: RUB 77.4m) minus (iii) trade and other payables (December 31, 2013: RUB 1,533.6 m; June 30, 2014: RUB 1,461.3 m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period. (6) Number of customers that have made at least one order as defined in total orders. (7) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period. 9

10 ZALORA Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 38.2% 32.3% EBITDA Margin % -99.0% -76.2% Capex % of net revenues 2.1% 2.2% Net working capital Cash position GMV 4 (EUR m) Growth % 44.1% Total orders Growth % 60.7% Total transactions Growth % 61.5% Total customers Growth % 113.4% Active customers (LTM) Growth % 52.9% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 69.2 m; H1 2014: loss of EUR 33.9 m) plus (ii) depreciation of property, plant and equipment (2013: EUR 0.6 m; H1 2014: EUR 0.3 m) plus (iii) amortization of intangible assets (2013: EUR 0.3 m; H1 2014: EUR 0.2 m). EBITDA includes share based payment expense that amounted to EUR 6.9 m in 2013 and EUR 4.7 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 0.8 m; H1 2014: EUR 0.9 m) plus (ii) acquisition of intangible assets (2013: EUR 0.7 m; H1 2014: EUR 0.1 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 10.6 m; June 30, 2014: EUR 14.2 m) plus (ii) trade and other receivables (December 31, 2013: EUR 2.1 m; June 30, 2014: EUR 3.0 m) plus (iii) prepaid expenses (December 31, 2013: EUR 1.5 m; June 30, 2014: EUR 1.4 m) minus (iv) trade and other liabilities (December 31, 2013: EUR 13.3 m; June 30, 2014: EUR 15.3). (4) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies), including value of vouchers and coupons. (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace). (6) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace). (7) Number of customers that have made at least one transaction as defined in total transactions. (8) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of period. 10

11 JABONG Key Financials (INR m) FYE Mar 2014 H1 CY 2013 H1 CY 2014 Net revenues 4, , ,246.5 Growth % 186.5% Gross profit Margin % -10.2% -13.7% -17.5% EBITDA 1-2, , ,572.9 Margin % -56.8% % -48.4% Capex % of net revenues 6.1% 3.0% 6.6% Net working capital Cash position 7, ,028.4 Key Performance Indicators (m) CY 2013 H1 CY 2013 H1 CY 2014 GMV 4 (INR m) 5, , ,094.8 Growth % 195.1% Total orders Growth % 170.7% (1) EBITDA is calculated as (i) loss from operations (twelve-month period ended March 31, 2014: loss of INR 2,573.7 m; sixmonth period ended June 30, 2013: loss of INR 1,333.8 m; six-month period ended June 30, 2014: INR 1,630.4 m) plus (ii) depreciation and amortization (twelve-month period ended March 31, 2014: INR 82.2 m; six-month period ended June 30, 2013: INR 39.3 m; six-month period ended June 30, 2014: INR 57.5 m). EBITDA includes share-based payment transaction expense that amounted to INR 65.7 m in the twelve-month period ended March 31, 2014, INR 90.6 m in the six-month period ended June 30, 2013 and INR 23.5 m in the six-month period ended June 30, (2) Capital expenditures are calculated as purchase of long lived assets that amounted to INR m in twelve-month period ended March 31, 2014, INR 34.1 m in six-month period ended June 30, 2013 and INR m in six-month period ended June 30, (3) Net working capital is calculated as (i) inventories (March 31, 2014: INR 1,365.9 m; June 30, 2014: INR 1,235.7 m) plus (ii) trade and other receivables (March 31, 2014: INR m; June 30, 2014: INR m) plus (iii) prepayments and other assets (March 31, 2014: INR 43.9 m; June 30, 2014: INR m) minus (iv) trade and other payables (March 31, 2014: INR 1,437.5 m; June 30, 2014: INR 1,666.9 m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies), including value of vouchers and coupons. (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace). 11

12 NAMSHI Key Financials (AED m) 2013 H H Net revenues Growth % 210.1% Gross profit Margin % 45.7% 51.2% 52.4% EBITDA Margin % -92.7% % -28.1% Capex % of net revenues 5.1% 9.3% 3.4% Net working capital Cash position GMV 4 (AED m) Growth % 201.7% Total orders Growth % 187.2% Total customers Growth % 174.2% Active customers (LTM) Growth % 124.9% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of AED 50.1 m; H1 2013: loss of AED 24.4 m; H1 2014: loss of AED 17.5 m) plus (ii) depreciation of property and equipment (2013: AED 0.6 m; H1 2013: AED 0.2 m; H1 2014: AED 0.6 m) plus (iii) amortization of intangible assets (2013: AED 0.2 m; H1 2013: AED 0.04 m; H1 2014: AED 0.1 m). EBITDA includes expense arising from equity-settled share-based payment transactions that amounted to AED 12.2 m in 2013, AED 6.3 m in H and AED 4.9 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: AED 2.2 m; H1 2013: AED 1.5 m; H1 2014: AED 1.9 m) plus (ii) acquisition of intangible assets (2013: AED 0.5 m; H1 2013: AED 0.3 m; H1 2014: AED 0.2 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: AED 6.9 m; June 30, 2014: AED 13.7 m) plus (ii) trade and other receivables (December 31, 2013: AED 7.7 m; June 30, 2014: AED 15.9 m) minus (iii) trade and other payables (December 31, 2013: AED 14.7 m; June 30, 2014: AED 29.5 m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies), including value of vouchers. (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period. (6) Number of customers that have made at least one order as defined in total orders. (7) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period. 12

13 GENERAL MERCHANDISE LAZADA Key Financials (EUR m) H H Net revenues Gross profit Margin % 6.4% 9.2% EBITDA Margin % -89.1% -84.7% Capex % of net revenues 1.7% 4.5% Net working capital Cash position GMV 5 (EUR m) Growth % 201.8% Total orders Growth % 207.2% Total transactions Growth % 312.9% Total customers Growth % 327.9% Active customers (LTM) Growth % 250.6% (1) Lazada switched reporting currency to USD. For comparability reasons, H key financials have been converted to Euro using a EUR/USD rate of (2) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 51.3 m; H1 2014: loss of EUR 40.5 m) plus (ii) depreciation of property, plant and equipment (2013: EUR 0.5 m; H1 2014: EUR 0.3 m) plus (iii) amortization of intangible assets (2013: EUR 0.1 m; H1 2014: EUR 0.1 m). EBITDA includes share based payment expense that amounted to EUR 6.5 m in 2013 and EUR 2.4 m in H (3) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 0.6 m; H1 2014: EUR 1.5 m) plus (ii) acquisition of intangible assets (2013: EUR 0.4 m; H1 2014: EUR 0.6 m). (4) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 5.7 m; June 30, 2014: EUR 11.8 m) plus (ii) trade and other receivables (December 31, 2013: EUR 2.1 m; June 30, 2014: 4.8 m) plus (iii) prepaid expenses (December 31, 2013: EUR 0.3 m; June 30, 2014: EUR 0.7 m) minus (iv) trade and other payables (December 31, 2013: EUR 13.4 m; June 30, 2014: EUR 24.1 m). (5) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (6) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace). (7) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace). (8) Number of customers that have made at least one transaction as defined in total transactions. (9) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of period. 13

14 LINIO Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 9.7% 6.2% EBITDA Margin % -71.1% -90.3% Capex % of net revenues 3.1% 1.2% Net working capital Cash position GMV 4 (EUR m) Growth % 79.8% Total orders Growth % 125.1% Total transactions Growth % 169.7% Total customers Growth % 285.7% Active customers (LTM) Growth % 222.6% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 34.5 m; H1 2014: loss of EUR 19.6 m) plus (ii) depreciation of property, plant and equipment (2013: EUR 0.4 m; H1 2014: EUR 0.2 m) plus (iii) amortization of intangible assets (2013: EUR 0.05 m; H1 2014: EUR 0.02 m). EBITDA includes share based payment expense that amounted to EUR 4.5 m in 2013 and EUR 1.9 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 1.4 m; H1 2014: EUR 0.2 m) plus (ii) acquisition of intangible assets (2013: EUR 0.1 m; H1 2014: EUR 0.04 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 5.0 m; June 30, 2014: EUR 3.8 m) plus (ii) trade and other receivables (December 31, 2013: EUR 1.6 m; June 30, 2014: EUR 2.1 m) minus (iii) trade and other payables (December 31, 2013: EUR 10.7 m; June 30, 2014: EUR 12.5 m). (4) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace). (6) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace). (7) Number of customers that have made at least one transaction as defined in total transactions. (8) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of period. 14

15 JUMIA Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 18.7% 13.3% EBITDA Margin % % % Capex % of net revenues 4.3% 4.9% Net working capital Cash position GMV 4 (EUR m) Growth % 98.5% Total orders Growth % 115.3% Total transactions Growth % 149.5% Total customers Growth % 192.7% Active customers (LTM) Growth % 130.5% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 34.1 m; H1 2014: loss of EUR 26.5 m) plus (ii) depreciation and impairment of property, plant and equipment (2013: EUR 0.4 m; H1 2014: EUR 0.2 m) plus (iii) amortization and impairment of intangible assets of (2013: EUR 0.03 m; H1 2014: EUR 0 m). EBITDA includes share based payment expense that amounted to EUR 3.1 m in 2013 and EUR 10.9 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 1.1 m; H1 2014: EUR 1.0 m) plus (ii) acquisition of intangible assets (2013: EUR 0.1 m; H1 2014: EUR 0 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013:EUR 3.9 m; June 30, 2014: EUR 4.6 m) plus (ii) trade and other receivables (December 31, 2013: EUR 4.7 m; June 30, 2014: EUR 10.9 m) minus (iii) trade and other payables (December 31, 2013: EUR 10.6 m; June 30, 2014: EUR 9.7 m). (4) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace). (6) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace). (7) Number of customers that have made at least one transaction as defined in total transactions. (8) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of period. 15

16 HOME & LIVING HOME24 Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 39.0% 41.6% EBITDA Margin % -40.9% -24.2% Capex % of net revenues 3.0% 2.4% Net working capital Cash position GMV 4 (EUR m) Growth % 42.6% Total orders Growth % 37.1% Total customers Growth % 95.5% Active customers (LTM) Growth % 38.0% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 40.2 m; H1 2014: loss of EUR 17.0 m) plus (ii) depreciation of property, plant and equipment (2013: EUR 0.4 m; H1 2014: EUR 0.1 m) plus (iii) amortization of intangible assets (2013: EUR 1.9 m; H1 2014: EUR 2.5 m). EBITDA includes share based compensation expense that amounted to EUR 6.4 m in 2013 and EUR 2.2 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 0.4 m; H1 2014: EUR 0.2 m) plus (ii) acquisition of intangible assets (2013: EUR 2.4 m; H1 2014: EUR 1.2 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 7.0 m; June 30, 2014: EUR 9.1 m) plus (ii) trade and other financial receivables (December 31, 2013: EUR 4.2 m; June 30, 2014: EUR 9.2 m) minus (iii) trade and other payables (December 31, 2013: EUR 15.5 m; June 30, 2014: EUR 23.7 m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and returned orders), i.e., total number of orders shipped in the period. (6) Number of customers that have made at least one order as defined in total orders. (7) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period. 16

17 WESTWING Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 40.4% 43.0% EBITDA Margin % -41.4% -35.3% Capex % of net revenues 1.2% 1.5% Net working capital Cash position GMV 4 (EUR m) Growth % 51.3% Total orders Growth % 74.0% Total customers Growth % 103.8% Active customers (LTM) Growth % 61.8% (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 47.7 m; H1 2014: loss of EUR 27.7 m) plus (ii) depreciation and amortization (2013: EUR 1.4 m; H1 2014: EUR 0.8 m). EBITDA includes share based compensation expense that amounted to EUR 9.7 m in 2013 and EUR 4.2 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 1.1 m; H1 2014: EUR 0.7 m) plus (ii) acquisition of intangible assets (2013: EUR 0.3 m; H1 2014: EUR 0.5 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 5.6 m; June 30, 2014: EUR 9.2 m) plus (ii) trade and other financial receivables (December 31, 2013: EUR 8.2 m; June 30, 2014: EUR 12.4 m) minus (iii) trade and other payables (December 31, 2013: EUR 15.6 m; June 30, 2014: EUR 16.8 m) minus (iv) advance payments received (December 31, 2013: EUR 3.5 m; June 30, 2014: EUR 8.1m). (4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison reasons between countries and companies). (5) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected & returned), i.e., total numbers of orders shipped in the period. (6) Number of customers that have made at least one order as defined in total orders. (7) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period. 17

18 FOOD & GROCERIES HELLOFRESH Key Financials (EUR m) 2013 H H Net revenues EBITDA Margin % -45.3% -17.8% Capex % of net revenues 0.3% 0.2% Net working capital Cash position Servings delivered Growth % 368.6% Active subscribers (last 3 months, in k) Growth % 322.6% (1) EBITDA is calculated as (i) EBIT (2013: loss of EUR 6.9 m; H1 2014: loss of EUR 4.0 m) plus (ii) depreciation and amortization (2013: EUR 0.3 m; H1 2014: EUR 0.1 m). EBITDA includes share based compensation expense that amounted to EUR 1.3 m in 2013 and EUR 1.6 m in H (2) Capital expenditures reflect purchases of property, plant and equipment. (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 0.1 m; June 30, 2014: EUR 0.4 m) plus (ii) trade and other financial receivables (December 31, 2013: EUR 0.3 m; June 30, 2014: EUR 1.2 m) plus (iii) prepaid expenses (December 31, 2013: EUR 0.03 m; June 30, 2014: EUR 0.4 m) minus (iv) trade and other payables (December 31, 2013: EUR 2.1 m; June 30, 2014: EUR 5.3 m) minus (iv) advance payments received (December 31, 2013: EUR 0.1 m; June 30, 2014: EUR 0.4m). (4) Number of all servings/meals sold and shipped to customers in period. (5) Number of people subscribed to services and having ordered at least once during the last three months. 18

19 FOODPANDA Key Financials (EUR m) 2013 H H Net revenues Gross profit Margin % 93.0% 84.4% EBITDA Margin % N/M N/M Capex % of net revenues N/M N/M Net working capital Cash position H (incl. DC) 7 H (incl. DC) 7 Gross transaction volume 4 (EUR m) Growth % 428.7% N/A Total orders Growth % 418.4% N/A Available restaurants 6 (k) Growth % 275.1% N/A (1) EBITDA is calculated as (i) operating profit or loss (2013: loss of EUR 13.4 m; H1 2014: loss of EUR 10.8 m) plus (ii) depreciation and amortization (2013: EUR 0.1 m; H1 2014: EUR 0.1 m). EBITDA includes share based compensation expense that amounted to EUR 1.3 m in 2013 and EUR 1.8 m in H (2) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: EUR 0.1 m; H1 2014: EUR 0.2m) plus (ii) acquisition of intangible assets (2013: EUR 0.3 m; H1 2014: EUR 25.9 m). (3) Net working capital is calculated as (i) inventories (December 31, 2013: EUR 0.2 m; June 30, 2014: EUR 0.3 m) plus (ii) trade and other financial receivables (December 31, 2013: EUR 1.9 m; June 30, 2014: EUR 4.6 m) minus (iii) trade and other payables (December 31, 2013: EUR 2.0 m; June 30, 2014: EUR 3.2 m). (4) The total value of total orders sold in period, including commission, delivery and service fees, excluding taxes. (5) Total number of orders booked and delivered. (6) Total number of restaurants available to customers at end of period (excluding restaurants foodpanda has discontinued business with). (7) Represents pro-forma figures (Delivery Club transaction closed in June 2014). Ends 19

20 Media Contact: Andreas Winiarski, Senior Vice President Global Communications T: E: About Rocket Internet Rocket's mission is to become the world s largest Internet platform outside of the United States and China. Rocket identifies and builds proven Internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies. Rocket is focused on proven online business models that satisfy basic consumer needs across three sectors: ecommerce, marketplaces and financial technology. Rocket was founded in 2007 and now has more than 25,000 employees across its network of companies, which operate in more than 100 countries on five continents. 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 our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. This presentation contains certain forward-looking statements relating to the business, financial performance and results of Rocket Internet AG, its subsidiaries and its participations (collectively, Rocket ) and/or the industry in which Rocket operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of Rocket or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Rocket operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential 20

21 impact of legal proceedings and actions and Rocket s ability to achieve operational synergies from acquisitions. Rocket does not guarantee that the assumptions underlying the forwardlooking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Rocket with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Rocket since such date. Consequently, Rocket does not undertake any obligation to review, update or confirm recipients expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation. Neither Rocket Internet AG nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation. 21