lazada kinnevik rocket cmd 2014
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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 tothe issues discussed or presented herein, or all views of the company. The information has been researched by the company with due careand all and any evaluations or assessments stated herein represent the company’s opinions. We advise you that some of the availableinformation has been independently verified and may be based on statements by third persons, but no representation or warranty,expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of thisinformation or opinions contained herein. Certain statements contained herein may be statements of future expectations and otherforward-looking statements that are based on our current personal views and assumptions and involve known and unknown risks anduncertainties that may cause actual results, performance or events to differ materially from those expressed or implied in suchstatements. None of our team shall assume any liability whatsoever (in negligence or otherwise) for any loss or unrealized profitwhatsoever arising from any use of this presentation or the statements contained herein as regards unverified third person statements,any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness ofstatements contained in the presentation, or otherwise made in connection with this presentation.
This presentation does not constitute an offer or invitation to purchase or subscribe for any investment and neither this presentation norany part of it shall form the basis of or be relied upon in connection with the entering into any commitment or contract whatsoever, and issolely intended to communicate information regarding the company, its business track-records and team members. No one should basetheir investment decisions on this presentation but should form their personal opinions on the basis of further available information andevaluations and assumptions. In addition, any prospective investor should consult its own attorney and business advisor as to the legal,business, and tax and related matters concerning any investment decision.
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 3rd
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 PhilippinesManilaPop: 108mMarch 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
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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 world’s ‘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 leapfroginfrastructure 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…
0.50.71.01.3
1.8
2.63.3
3.84.1
4.64.84.95.15.45.65.86.06.76.9
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 popularity1 outgrowing competition Highly engaged2 interactions with targeted customers
Growth in Facebook fans (m) a testament of popularity
Source: Company Data, Facebook, Google Trends; Note: All numbers exclude Lamido1 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
lazadabliblibhinnekarakutentokopedia
252
387
527
723
967
121 144176
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
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Rapidly growing new and active1 customers
Growing unique visitors base (m) Expanding share of mobile traffic2
Accelerating growth in orders delivered (m)
Source: Company Data; Note: All numbers exclude Lamido1 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
3330
3741
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
0.20.3
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-14WE
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.
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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
Electronics38%
Lifestyle39%
Health & Beauty
14%
Fashion7%
Other2%
1
2
3 4
Source: Company Data as of April 2014; Note: All numbers exclude Lamido1 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
11Main WH Fleet hub 2014Fleet hub today
Vietnam
Indonesia
Philippines
5k sqm 2nd generation WH in Bangkok
~100% COD coverage5k sqm 2nd 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 2nd generation WH in Manila
Inhouse fleet covers full Metro Manila today
~95% COD coverage
5k sqm 2nd generation WH in Klang Valley
Inhouse fleet covers KlangValley, Johor Bahru,
Penang today
~80% COD coverage
3k sqm 2nd generation WHin 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 GilaniCPO
Responsible for Product and Onsite Experience
Tim RathCMP
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
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Eugene ChistyakovCTO
Responsible for Web Services and Infrastructure
▪ Web development▪ eCommerce
Igor PezzilliHead 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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