22 May 2014

Kinnevik Rocket Capital Markets Day

Disclaimer
2
The information contained in this presentation is public information only, but it does not necessarily represent all information related to
the issues discussed or presented herein, or all views of the company. The information has been researched by the company with due care
and all and any evaluations or assessments stated herein represent the companys opinions. We advise you that some of the available
information has been independently verified and may be based on statements by third persons, but no representation or warranty,
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Marketplace
C2C
Payment
B2C
Lazada Group is aiming to control the Southeast Asian
eCommerce ecosystem as Alibaba does in China
Operating Model Similar Players
Fulfilment
3
Launched Benefits
Spring
2013
Control supply chain
Build strong customer satisfaction,
reputation and trust
May
2013
Expand assortment and reduce inventory
risk
Improve economics
August
2013
Bring smaller sellers online
Seller split between MP / C2C
Sell refurbished and second-hand products
Spring
2014
Offer customers trustworthy and reliable
payment options
Reduce costs for sellers
Spring
2014
Offer marketplace / C2C merchants and 3
rd
parties eCommerce logistic services
Further drive operational efficiency
Adaption of online department store model
(Amazon and Tmall) in Southeast Asia
Project launch in February 2012 with all sites
live during March
Targeting more than 500m consumers across 5
fast growing economies
HQ in Singapore with independently operating
country offices
Singapore operations ready to be launched in
May 2014
More than 1,700 FTEs across the region
Backed by leading sector specialists and investors:
Lazada was launched early 2012 to target >500m
consumers
Lazada Thailand
Bangkok
Pop: 68m
March 28, 2012
Lazada Philippines
Manila
Pop: 108m
March 31, 2012
Lazada Indonesia
Jakarta
Pop: 254m
March 26, 2012
Lazada Malaysia
Kuala Lumpur
Pop: 30m
March 27, 2012
Lazada Vietnam
HCMC
Pop: 93m
March 28, 2012
4
Lazada Singapore
Singapore
Pop: 6m
Launching soon
Source: CIA World Factbook, July 2014 estimates
HK/Shenzhen
Sourcing hub
Jan 1, 2013
aiming at monetizing several converging mega trends
Strong GDP growth with ASEAN-10 GDP expected to grow at ~5% p.a. in the coming 4 years
Over 145m people expected to achieve a disposable income greater than 3k USD by 2015
Young and growing population 60% of the worlds youth population in Asia Pacific
eCommerce sales currently at ~1% of total retail sales but will rapidly catch up with China, were
online shopping represented 7.9% of total consumption in 2013
Internet savvy population with over 145m Facebook users
Rapid adoption of low-cost mobile phones and tablets is accelerating shift to online
Mobile as online access point is driving faster adoption of mCommerce where always connected
customers typically are more loyal and valuable
5
Booming macro
environment
Mobile to
leapfrog
infrastructure
barriers
Rising adoption
of online
shopping
Lack of offline
alternatives
outside big cities
Lack of shopping malls in rural areas and tier 3/4 cities positions online as the only real alternative
Studies on China demonstrate how the average online shopper outside big cities has a higher share of
wallet directed to online spending
Souce: Industry research, Lazada Group estimates
56
79
Q1 '13 Q1 '14
1 2
Already the #1 eCommerce player in all 5 markets
0.5
0.7
1.0
1.3
1.8
2.6
3.3
3.8
4.1
4.6
4.8
4.9
5.1
5.4
5.6
5.8
6.0
6.7
6.9
Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14
3.8%
0.5%
6
Wide reach with rapid growth in visits (m)
Brand popularity
1
outgrowing competition Highly engaged
2
interactions with targeted customers
Growth in Facebook fans (m) a testament of popularity
Source: Company Data, Facebook, Google Trends; Note: All numbers exclude Lamido
1 Volume of Google brand searches in Indonesia, indexed; 2 Facebook engagement ratio in Apr. 2014 = Number of engagements / Number of fans
+41%
Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14
lazada
blibli
bhinneka
rakuten
tokopedia
252
387
527
723
967
121
144
176
246
333
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Active Customers (k) New Customers (k)
with a rapidly growing base of active customers
7
Rapidly growing new and active
1
customers
Growing unique visitors base (m) Expanding share of mobile traffic
2
Accelerating growth in orders delivered (m)
Source: Company Data; Note: All numbers exclude Lamido
1 Number of customers placing at least one transaction (pre-return) within 12 months before period end; 2 Includes visits from Mobile, Mobile Apps and Tablets
11%
14%
22%
27%
35%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
26
33
30
37
41
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
0.2
0.3
0.3
0.5
0.7
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
89%
86%
78%
73%
65%
57%
50%
6%
6%
6%
6%
7%
7%
9%
3%
4%
8%
11%
14%
5% 8%
13%
16%
20%
24%
27%
Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Apr-14 Apr-14
WE
Desktop Tablet App Mobile
8
Evolution of traffic mix
Market leading mobile platform a key driver of growth
Source: Company Data; Note: All numbers exclude Lamido
Overview
Android app with >1m downloads launched in
June 2013
- Ranked among Top4 shopping applications in
Google Play across all markets
iOS app with >1/2m downloads launched in
January 2014
- Featured as Best New App by Apple
Dedicated mobile site for optimized user
experience
Official eCommerce partner with key mobile
players such as LINE, WeChat, etc.
9
Marketplace is ~40% of NMV
Marketplace reaching more than 40% of NMV
Source: Company Data for 1-20 May 2014; Note: All numbers exclude Lamido
Overview
More than 2,000 active sellers driving strong
assortment growth and enabling multi-source
price competition
Launch of cross-border marketplace out of
Hong Kong
- Expansion of global market place model to
China, Japan, Korea and RoW
Shop-in-shop for major brands across all
categories
Multiple additional revenue streams
- Payments, delivery, warehousing, etc.
- Onsite advertising and other marketing
services
- BI and analytics
Marketplace
~40%
Retail
~60%
10
Non-electronics already representing >60% of sales
Overview Share of items sold by category
Electronics
38%
Lifestyle
39%
Health &
Beauty
14%
Fashion
7%
Other
2%
1
2
3
4
Source: Company Data as of April 2014; Note: All numbers exclude Lamido
1 Includes Cameras, Computers & Laptops, Consumer Electronics, and Mobiles & Tablets; 2 Includes Home Appliances, Home & Living, Toys, Kids & Babies, Sports & Outdoors, and Travel & Luggage;
3 Includes Fashion and Watches; 4 Includes Automotive & Gadgets and Media, Games & Music
Lifestyle outgrowing other categories driven
by assortment growth, partnerships and
merchandising
Continued growth of Electronics fuelled by
price competitiveness and brand partnerships
- Leveraging dynamics of marketplace to
achieve price leadership without harming
economics
Fashion share expected to grow rapidly in Q3
2014 following official launch
- Development of private label LZD and
central purchasing of fast fashion brands
Strong Health & Beauty footprint thanks to
assortment expansion and close partnership
with key brands
Thailand
11
Main WH Fleet hub 2014 Fleet hub today
Vietnam
Indonesia
Philippines
5k sqm 2
nd
generation
WH in Bangkok
~100% COD coverage
5k sqm 2
nd
generation
WH in Jakarta
~70% COD coverage
Share of customers
~55%
Rural
~45%
Urban
Wide reach supporting a large and diversified group of
loyal customers especially in rural areas
Malaysia
Source: Company Data as of April 2014
8k sqm 2
nd
generation
WH in Manila
Inhouse fleet covers full
Metro Manila today
~95% COD coverage
5k sqm 2
nd
generation
WH in Klang Valley
Inhouse fleet covers Klang
Valley, Johor Bahru,
Penang today
~80% COD coverage
3k sqm 2
nd
generation WH
in HCMC
Inhouse fleet covers Hanoi,
Danang & HCMC today
~90% COD coverage
Highly diverse and experienced management team
Maximilian Bittner
Group CEO
Responsible for Buying
Sohil Gilani
CPO
Responsible for Product and Onsite
Experience
Tim Rath
CMP
Responsible for Marketplace
Stein Jakob Oeie
CMO & CFO
Responsible for Marketing, Finance
and BI/Data Management
Name Title Previous Experience
Consulting
Private Equity
Investment Banking
MBA
Consulting
Corporate Law
Investment Banking
Online Marketing
MSc
Internet Veteran
eCommerce
Usability
12
Eugene Chistyakov
CTO
Responsible for Web Services and
Infrastructure
Web development
eCommerce
Igor Pezzilli
Head of Business Development
Responsible for Malaysia, Lamido and
Payments
PE
Consumer, retail, luxury goods
Pierre Poignant
COO
Responsible for Operations
Consulting
MSc
Platform/
Ecosystem
Operational
excellence
World-class
IT
THANK YOU
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