Zalando Overview 2014

1. Zalando –
Europe’s leading
online fashion
destination
May 22, 2014
Zalando AG

2. 1
Why are we here?
Customer value: We believe online technology offers superior ways to the customers
to shop fashion in terms of convenience, selection, personalization and inspiration.
Proven model: When we started, our friends asked us: “Who would buy shoes
online?” Today they ask us: “Can I get another friendship-voucher?”
Mega trend: Almost everyone growing up in Europe today is a “digital native”. In the
future, the majority of fashion purchases will be inspired and made online.
Disruptive company: Over the last five years we have changed the way Europeans
shop fashion. But when we look at Zalando today we think it still is small compared to
what it could be. We are still at the beginning of our journey!
Great team: We are a group of young, entrepreneurial and ambitious people. We want
to continue to disrupt and shape the fashion industry, and to offer our customers the
world’s best online fashion experience.

3. 2
€2.0bn
run-rate revenue (1)
at record
breaking speed
332m
visits in Q1’14
~38% from
mobile devices
at end of Q1’14
13.5m
active customers (2)
~89% brand
awareness (3)
150,000+
styles
1,500+
brands
Zalando at a glance
(1) Annualised Q1 2014 revenue.
(2) Active customers have shopped at Zalando at least once during the past 12 months.
(3) Countries with Zalando shop launched before 2012. Zalando survey March 2014.

4. Zalando’s key milestones
3
2008/09
Building Germany’s online
leader in shoes
• Broad product selection
(no discount model),
convenient shopping
• Fast brand building
2010
Category expansion
• Expansion into other
fashion categories
(clothing, sports,
accessories)
• Expansion into private
label
2011/12
Geographic expansion
• Presence in 15 markets
reaching more than 400m
people (1)
• Market leader in online
fashion retail in majority of
served countries
2013/14
Operational excellence
and innovation
• Growth investments in
technology and logistics to
support future growth
• Front-end innovation to
drive customer activity
(1) Luxembourg followed as 15th countryy in 2013.

5. 4
Unwrapping Zalando – what’s inside
Online fashion is a massive and highly attractive market opportunity1
Zalando is in the pole position to win the online fashion market in Europe2
Significant top-line growth at scale with history of profitability in core DACH region3
Visionary founder-led team with proven track record of scaling at speed4

6. 5
e-Commerce
fashion
Europe
• Largest online consumer
product category with highly
attractive margin profile
• Early on the curve of online
adaption
• Europeans have high fashion
spending per capita and high
density of fashion spending
• Early on the curve of online
penetration
• Intersection of attractive
category and geographic
market
• Targeting very sizable market
opportunity for long-term
growth
Zalando’s
sweet spot
Online fashion is a massive and highly attractive
market opportunity
1

7. 6
Unwrapping Zalando – what’s inside
Online fashion is a massive and highly attractive market opportunity1
Zalando is in the pole position to win the online fashion market in Europe2
Significant top-line growth at scale with history of profitability in core DACH region3
Visionary founder-led team with proven track record of scaling at speed4
Zalando is the online fashion leader in Europe by brand awareness and website visitors
Scale enables us to deliver the best value to customers and brands
Highly localised operations in 15 regional businesses
Integration of fashion, technology and operations creates disruptive business model

8. Zalando
H&M
Bonprix
Myntra
Nike
Asos
Inditex
LaRedoute
Zappos
Dafiti
Spartoo
Sarenza
Yoox
Net-a-Porter
7
Zalando is the online fashion leader in Europe
by brand awareness and website visitors
(Relative position by un-aided brand awareness (1))
Strong brand driving top-of-mind awarenessMost visited fashion website outside China
2
Source: Zalando survey March 2013 (right), ComScore (left).
(1) Relative position relative to following competitor. Simple average of relative positions across markets assumed.
(2) Poland and Netherlands (survey not conducted for UK and Belgium on an ongoing basis).
1.4x
(Global Online Retail Websites Worldwide Unique Visitors, 2013)
2.4x
2.3x
1.6x
1.2x
Southern
Europe
DACH Nordics Europe –
Other (2)

9. 8
• Broad selection of brands
and styles
• Inspiration and emotional
engagement
• Fast delivery and customer
support
• Mobile experience
• Significant economies of scale
• More data leading to better
insight
• Leverage in key areas:
‒ Marketing bidding
‒ Purchasing
‒ Logistics
• Access to 400 million
Europeans
• Zalando as strategic partner
to lead brands in online age
• Trusted brand experience
• Not a discount model
Customers
(>13.5m active customers)
Brands
(>1,500 brands)
Scale enables us to deliver the best value to
customers and brands
Creating a compelling
customer experience
Helping brands
to win online
2
Generating scale driven
network effects
(1) Annualised Q1 2014 revenue.
Zalando Scale
(€2bn run-rate revenue (1))

10. Local
payment
methods:
InvoicePrepayment
Highly localised operations in 15 regional
businesses
Multi-lingual:
Multi-currency:
Local
logistics
partners:
12 Languages
7 Currencies
2
Local
brands:
Hundreds of
local brands
Over 20 methods
Over 12 partners
Multi-country: 15 Countries
GermanyFrance ItalyAustria Belgium Denmark Finland Luxembourg
Netherlands UKSwitzerlandSwedenSpainPolandNorway
9

11. 10
Zalando dimensions
Customer experience
Successful integration of fashion, technology and
operations creates disruptive business model
2
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data

12. 11
89%Zalando brand awareness in
countries with Zalando shop
launched before 2012
74%Zalando brand awareness in
countries with Zalando shop
launched in 2012
High brand awareness across markets (1)
(1) Zalando March 2014 survey.
(2) Excluding U.K (survey not conducted on an ongoing basis).
(3) Excluding Belgium (survey not conducted on an ongoing basis).
(4) Active customers have shopped at Zalando at least once during the past 12 months.
Rapid growth in visitors
Zalando is the go-to online fashion destination in Europe
Rapid growth in active customers (4)
73
332
Q1'11 Q1'14
2.5
13.5
Q1'11 Q1'14
4.5x
5.4x
(2)
(3)
In millions
In millions
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data

13. 12Source: Webtrekk.
(1) Mobile is defined as tablets, mobile site and apps.
(2) Textilwirtschaft (5.9.2014): „Mobile-Studie: Zalando bei Tablets vorn“
Mobile is critical for driving:
Anywhere, anytime access
Incremental engagement &
transactions
In store comparison
#2 lifestyle app
on iOS store in Germany
“Best tablet site amongst
fashion sites”
TextilWirtschaft (2)
4-Star user rating
on iOS store in Germany
Zalando is successfully riding the mobile wave
Mobile share of Zalando traffic (1)
App 1.0
Zalando.de
first m.site
App 3.0
201320122011 2014
End of
Q1’14
38%
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data

14. 13
150,000+
styles
Local relevant brands
Large global brands
Zalando has created a go-to fashion destination with a
broad and compelling offer
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data
Private labels
Fast fashion brands1,500+
brands
Partner program
• Higher availability
• Better selection

15. B
MG EF
Erfurt
120,000 sq.m.
14Note: Brieselang, Erfurt and Mönchengladbach represent Zalando’s in-house operations, another warehouse in Großbeeren is operated by a service provider and not displayed. Großbeeren is
expected to ramp-down / close by year-end.
Centralised distribution from the center of Europe
Total >250,000 sq.m. combined capacity
Custom-tailored and semi-automated warehouses
Capital-light investments through leasing of building
Recent investments in logistic infrastructure are
starting to pay off
>50% of population and >80% of customers within radius of 750km (= 9 hour drive) from Erfurt
Brieselang
30,000 sq.m.
Mönchengladbach
75,000 sq.m.
(+45,000 sq.m.
expansion ongoing)
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data

16. 15
Demand model
Marketing vs.
discount
Cross-sell
recommen-
dation
Payment option
steering
Return forecast
Order forecast
All business processes supported by best in class
in-house technology and big data solutions
Strategic ownership of technology platform Consistent use of big data
Brand &
Customer
Base
Online &
Mobile
Operations Fashion
Technology
& Big Data
Examples
400+ IT professionals Plus 60+ data scientists

17. 16
Unwrapping Zalando – what’s inside
Online fashion is a massive and highly attractive market opportunity1
Zalando is in the pole position to win the online fashion market in Europe2
3
Visionary founder-led team with proven track record of scaling at speed4
Significant top-line growth at scale with history of profitability in core DACH region

18. 17
Zalando has shown strong growth, reaching €2bn
run-rate (1) after 5 years
142
377
773
1,056
6
2009
1 country
2010
3 countries
2011
7 countries
(2) DACH = Germany, Austria, Switzerland.
2009: Only Germany.
2010: Added Netherlands and France.
223
284
Q1’14
15 countries
2012
14 countries
2013
15 countries
Q1’13
14 countries
2011 Added Italy, U.K., Austria and Switzerland.
2012 Added Finland, Norway, Sweden, Belgium, Spain, Poland and Denmark.
2013 Launch of Zalando Luxembourg in November 2013 operated through Zalando Belgium.
3
1,159
510
154
6
372
+35%
+€129m
501
+28%
+€61m
+45%
+€68m
(1) Annualised Q1 2014 revenue.
DACH (2)
€ in millions
Revenue development
1,762

19. 18
20122011
(1) DACH = Germany, Austria, Switzerland.
2010
-15.0%
-11.7%
-7.2%
-6.5%
2013
Q1 2014A
and 2014E
Track record of profitability in core DACH region
with significant margin upside
3
percent
Group EBIT margin development
Group EBIT margin
improved significantly
year-on-year in Q1’14
Higher fulfillment
productivity
Increased marketing
efficiency
Good start into
spring/summer
season
Q1’ 14 trends underline
our plan to take a
significant step toward,
but not quite reach, EBIT
break even at Group
level in FY2014
Negative margins in DACH(1) due
to fast brand building & scaling
DACH breakeven as
business model matures

20. 19
Unwrapping Zalando – what’s inside
Online fashion is a massive and highly attractive market opportunity1
Zalando is in the pole position to win the online fashion market in Europe2
Significant top-line growth at scale with history of profitability in core DACH region3
Visionary founder-led team with proven track record of scaling at speed4

21. 20
Management Board
David Schneider
“Zalando as a
fashion company”
Robert Gentz
“Zalando as
an online
company”
Rubin Ritter
“Zalando as a
process machine”
Management Board
supported by strong
second and third
level management
team
Visionary founder-led team with proven track
record and well capitalised business
Anders Holch
Povlsen
Equity shareholder base (1)
(1) Shareholder structure includes: Investment AB Kinnevik: 36.5%, European Founders Found: 17%, Anders Holch Povlsen: 10%.
4
Zalando is well
capitalized:
Net cash position
>€350m at the end
of 2013

22. 21
We want to provide the best online fashion experience
Customer want more
Innovate the customer experience
Win in all contexts
Thinking in usage situations
Strategic brand partnerships
Storytelling, Smart Data, etc.
Desktop
during the day
Tablet
in the evening
Smartphone
in the morning
Advice and inspiration
Process innovations
Social shopping experience
Relevant recommendations

23. 22
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