Zalando SE — Investor Presentation 2014

Oct 13, 2014

EUROPE'S LEADING ONLINE FASHION DESTINATION

Company Presentation October 2014

DISCLAIMER

1

This presentation may not be published, distributed or transmitted, directly or indirectly, in or into the United States of America (the "United States"), Canada, Australia or Japan. These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities of Zalando SE (together with its subsidiaries, the "Company") in the United States, Germany or any other jurisdiction. The securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities of the Company have not been, and will not be, registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This presentation constitutes neither an offer to sell nor a solicitation to buy any securities of the Company. No action has been taken that would permit an offering of the securities or possession or distribution of this presentation in any jurisdiction where action for that purpose is required. Persons into whose possession this presentation comes are required to inform themselves about and to observe any such restrictions.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company 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 the Company 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 Germany, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and the Group'"s ability to achieve operational synergies from past or future acquisitions. The Company does not guarantee that the assumptions underlying the forward-looking 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 the Company with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. Consequently, the Company does not undertake any obligation to review, update or confirm investors' 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.

This presentation contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be used as) the basis of any analysis or other evaluation. In addition, the information in this presentation is subject to change. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein.

Introduction

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FOUNDER LED MANAGEMENT TEAM

Rubin Ritter Finance & Operations David Schneider Fashion & Brand Relations Robert Gentz Marketing & Business Development

OUR MISSION

Our mission is to create the world's best online fashion experience

ZALANDO AT A GLANCE

REACH	SCALE	ASSORTMENT	GROWTH
>100m	>13.7m	150,000+	€2.0bn
visits per month	active customers	styles	LTM revenue after
~41%	~88%	1,500+	only six years
mobile device traffic	brand awareness1	brands

40 40 40 From a basement full of shoeboxes ……to Europe's leading online fashion destination

SYSTEMATIC EXPANSION ACROSS CATEGORIES & GEOGRAPHIES

UNIQUE ASSORTMENT: BROAD, CURATED AND INSPIRING

SUPERIOR VALUE PROPOSITION – FOR CUSTOMERS & BRANDS

WHY CUSTOMERS LOVE ZALANDO

• Convenient shopping anytime, anywhere
• Broad & unique selection
• Inspirational and personalized shopping experience
• Highly localized offering
• Free delivery and returns

WHY FASHION BRANDS LOVE ZALANDO

• Delivering online growth
• Localized access to 15 markets via single partner
• Fashionable & brandenhancing environment
• Data-driven customer insight
• Partnership-based approach

KEY HIGHLIGHTS

Disrupting the €420bn European fashion market

Clear pure-play online fashion leader in Europe with strong mobile platform

Highly localized and personalized fashion experience

Technology and operational "engine" in place, custom-built for large scale

Powerful combination of scale and growth, at inflection point in margin

Pole position to capture future growth opportunities

TARGETING A LARGE & FRAGMENTED MARKET OPPORTUNITY

Source: Euromonitor International, June 2014, 2013 fixed exchange rates.

Data for Europe (excl. Russia) incl. apparel and footwear, bags and luggage, jewellery and watches. All market figures inclusive of sales tax. Company information.

(1) Data as of FY2013. Source: Euromonitor International and company information.

FASHION HAS THE HIGHEST GROSS MARGINS

Average gross margins of representative sample of e-commerce players¹

Source: Company filings.

(1) Segment gross margins based on average of industry players; LTM figures as per the most recent published company filings. Fashion: Asos, Yoox and Boohoo; Beauty: Jumei; Food and Drink: Ocado; Books: Amazon; Electronics: Amazon, Dangdang, JD.com.

EUROPE – STRUCTURALLY WELL SUITED FOR ONLINE FASHION

(1) Fashion spend in €'000 per square km.

THE CLEAR PURE-PLAY ONLINE FASHION LEADER IN EUROPE

Most visited fashion website globally (excl. China and India)

Average monthly unique visitors for the 12 months ended in June 2014

Strong brand recognition: Household name in Europe

Key elements of strong Zalando brand image

~€850m investment in marketing since 2011

markets launched pre-2012 1

~2x unaided brand awareness vs. the nearest competitor 2

~70% organic traffic

~2x revenue vs. the next largest competitor

Revenue in €bn³

Source: comScore as of June 2014 (left). Company information (middle & right).

(1) Source: Survey conducted by Zalando and Norstat in June 2014 for aided brand awareness excluding UK (survey not conducted on an ongoing basis).

(2) Source: Survey conducted by Zalando and Norstar in June 2014 for unaided brand awareness. Position by unaided brand awareness relative to following competitor. Simple average of relative positions across markets.

(3) LTM June 2014 revenue for Zalando. LTM revenue as of May 2014 for Asos as per respective public filings.

OUR WINNING FORMULA FOR ONLINE FASHION IN EUROPE

Source: Euromonitor International, June 2014, for population data. Moons as per Company management.

(1) 2013 regional population.

(2) Includes France, Italy and Spain.

AT THE FOREFRONT OF THE MOBILE OPPORTUNITY

Zalando mobile platform is rapidly growing Mobile Visit Share (% of site visits)

(1) Based on share of gross revenue before cancellation during Q2 2014.

(2) App downloads as of Q2 2014.

(3) As of 21 August 2014.

CURATION & INNOVATION OF FASHION EXPERIENCE

LOCALIZED CUSTOMER EXPERIENCE & CENTRALIZED BACKEND

LOCALIZATION EXPERTISE DELIVERS SIGNIFICANT BENEFITS

PROPRIETARY AND EFFICIENT FULFILLMENT INFRASTRUCTURE

Custom-built to deliver convenience and designed for 2x current revenue

Brieselang 28,000 sq.m.

Erfurt 125,000 sq.m.

Mönchengladbach 75,000 sq.m. (+50,000 sq.m. expansion ongoing)

Total capacity equals ~ 40 soccer fields

~65% of population and ~85% of active customers within 9 hours truck drive from warehouses

500+ IT experts Top talent from 50+ countries 40+ dedicated product teams Focus on innovation Business Processes PROPRIETARY CUSTOM BUILT MODULAR SINGLE TRUTH SCALABLE SECURE RELIABLE OPEN Front End Web Shops Order Processing Customer Data Management Search Risk Management Master Data Management Recommendation Payment Processing Pricing Mobile Sites & Apps Workflow Tooling Custom-built system Integrated 3rd party system Financial Systems Warehouse Management Customer Service Business Intelligence Supplementary 3 rd Party Systems HIGHLY SCALABLE, PROPRIETARY TECHNOLOGY PLATFORM

BIG DATA CAPABILITIES WITH STRONG IMPACT

Note: Payment option steering rolled out for Germany in February 2014. Invoice offering rate, conversion rate and fraud rate decrease for Germany during February 2014. EBIT increase for Germany annualized based on input data measured during February 2014 and applied to 2014 management plan.

Financial profile

KEY FINANCIAL HIGHLIGHTS

SIGNIFICANT REVENUE GROWTH AT SCALE

STRONG GROWTH ACROSS CUSTOMER METRICS

(1) Defined as the transactional revenue (incl. VAT and transactional volume of Partner Program) after cancellations or returns divided by the number of orders.

CLEAR OPERATING LEVERAGE

DACH with ~5% EBIT margin in H1 2014 (9.9%) (3.1%) 2.0% 0.8% (2.4%) 4.6% 2010 2011 2012 2013 H1 2013 H1 2014 DACH EBIT margin (excl. SBC) +7.0pp

Strong margin increase in Rest of Europe

Rest of Europe EBIT margin (excl. SBC)

FAVORABLE GROSS MARGIN DRIVERS, AS SHOWN IN Q2 2014

FULFILLMENT COST EFFICIENCIES DRIVEN BY IN-SOURCING

CLEAR OPERATING LEVERAGE FROM MARKETING EFFICIENCY

(1) Customer Acquisition Cost is defined as total marketing cost during a specific period (as of October 2011 here) divided by the number of new customers acquired during the same period.

(2) Customer Lifetime Value is a measure defined as the cumulated profit contribution II (PC II), according to the expense method, before marketing expenses, i.e., gross profit less fulfillment costs, by all orders of that specific acquired customer cohort within a particular timeframe (as of October 2011 here) since customer acquisition (CLV cumulative as per beginning of June 2014; CLV calculated on the basis of days, presentation based on approximated months).

(3) We define returning customers share as the number of customers that (a) is an active customer, and (b) placed at least two orders since our inception divided by all active customers.

CAPITAL EFFICIENT BUSINESS MODEL

WELL-POSITIONED TO CAPITALIZE ON GROWTH OPPORTUNITIES