C A P I T A L M A R K E T S

D A Y 2 0 1 6

Z A L A N D O

O P E R A T I O N S

2 2 - 0 3 - 2 0 1 6

D A V I D S C H R Ö D E R ,

D R . C H R I S T O P H S T A R K ,

L I S A M I C Z A I K A

1. Introduction and Overview

2. Logistics Network Expansion

3. Latest Innovations

4. Q&A

T A B L E O F

C O N T E N T S

1 . I N T R O D U C T I O N & O V E R V I E W

4

2 5 5 6 5 0

0 0 0

2 5 5 2 5 5 2 5 5

1 1 5 1 2 2 1 3 2

2 2 9 2 2 9 2 2 9

2 4 3 2 4 3 2 4 3

1 0 9 1 0 9 1 0 9

2 5 4 1 6 6 1 0 1

2 5 5 2 1 0 1 7 8

• Payment processing

• Payment Customer Care

• Dunning & collection of

arrears

• Fraud prevention

• Allowance accounting

O P E R A T I O N S S U P P O R T S T H E Z A L A N D O P L A T F O R M

W I T H F O U R K E Y S E R V I C E S

C O N T E N T

C R E A T I O N

• Photography capturing &

editing

• Texting of product

descriptions

• Tagging of key words

• Creative development of

new formats

P A Y M E N T S L O G I S T I C S C U S T O M E R

C A R E

• Warehouse logistics

(inbound, storage, parcel

outbound)

• Returns handling & logistics

• Transport & shipping

• Network planning

• Warehouse planning

• Mail & phone support

• Chat

• Social Media

• Self-help / Smart FAQ

5

2 5 5 6 5 0

0 0 0

2 5 5 2 5 5 2 5 5

1 1 5 1 2 2 1 3 2

2 2 9 2 2 9 2 2 9

2 4 3 2 4 3 2 4 3

1 0 9 1 0 9 1 0 9

2 5 4 1 6 6 1 0 1

2 5 5 2 1 0 1 7 8

O U R M I S S I O N A S Z A L A N D O O P E R A T I O N S I S

T O B E C O M E T H E B E S T F U L F I L M E N T P A R T N E R F O R F A S H I O N I N E U R O P E

• Offer a compelling local shopping experience proposition in all our markets

• Ensure perfect day-to-day execution and a consistently high level of service quality

• Introduce key innovations along the value chain

• Plan ahead and secure enough capacity options to enable long-term growth

• Expand capacity as needed on time, in budget and without compromising quality

• Provide flexibility to capture all growth opportunities while keeping efficiency up

• Ensure continuous improvement in costs, lead times and process quality of all processes

• Take advantage of innovative technology to create step changes in operational excellence

• Foster a true lean culture within the whole organization

C U S T O M E R

S A T I S F A C T I O N

S U S T A I N A B L E

G R O W T H

O P E R A T I O N A L

E X C E L L E N C E

1

2

3

6

C L E A R C U S T O M E R C E N T R I C I T Y F O C U S L E A D S T O

S I G N I F I C A N T I N C R E A S E I N C U S T O M E R S A T I S F A C T I O N

P A Y M E N T

C O N T E N T

C R E A T I O N L O G I S T I C S

C U S T O M E R

C A R E

• Full face model roll-out

• Shop the look

• 360 degree format

• Invoice offering

• Pay later

• Apple pay

• Surprise & Delight

• Chat

• Self-help

• Lead time reduction

• Same day delivery

• Return label in parcel

• Direct reimbursement

+ 1 %

2013 2014 2015

+ 6 %

2013 2014 2015

+ 7 %

2013 2014 2015

+ 1 4 %

2013 2014 2015

Note: Customer satisfaction in percent of customers evaluating service as 1 or 2 on a scale of 1 to 5 with 1 = very satisfied, 5 = not satisfied.

(1) YoY as per Dec-2015.

Satisfaction in % Satisfaction in % Satisfaction in % Satisfaction in %

C A G R

1 NPS at all-

time high

+10 points1

7

C O N T I N U E D C A P A C I T Y E X P A N S I O N

S U P P O R T S B U S I N E S S G R O W T H

• Team ramp-up

• Integration of second

partner

• Scaling of payment

systems

• Selective team ramp-up

• Team ramp-up

• Ramp-up of service

providers for selected

markets

• Ramp-up

Mönchengladbach

warehouse

+ 8 %

2013 2014 2015

+ 2 7 %

2013 2014 2015

+ 2 6 %

2013 2014 2015

+ 5 %

2013 2014 2015

P A Y M E N T

C O N T E N T

C R E A T I O N L O G I S T I C S

C U S T O M E R

C A R E

# articles in ‘000 # transactions in m # shipments in m # contacts in m

C A G R

2

8

C O N T I N U O U S I M P R O V E M E N T C U L T U R E

D R I V E S O P E R A T I O N A L E X C E L L E N C E

• Cell-based production

• Increased sample rate

• Improved tooling and

higher degree of

automation

• Process improvements

across customer journey

• Focus on self-help tools

• Productivity gains

across all processes and

warehouses

• Additional automation

- 2 1 %

2013 2014 2015

- 1 9 %

2013 2014 2015

- 5 %

2013 2014 2015

- 1 7 %

2013 2014 2015

Time to online in days Payment costs in € / order1 Logistics costs in € / item Contact rate in % of orders

P A Y M E N T

C O N T E N T

C R E A T I O N L O G I S T I C S

C U S T O M E R

C A R E

3

(1) Excludes fraud and external processing costs (e.g ., PayPal, Credit Card fees, etc .).

C A G R

2 . L O G I S T I C S N E T W O R K E X P A N S I O N

10

H U B & S P O K E L O G I S T I C S N E T W O R K

• Current network enables €5.5bn in revenues

• Next hub facility being planned, will enable up to €7bn in revenues

11

1 3 8 8 10 12

20

31 36

45 45

55 56

75 72 76

80 80 83 83

E U R O P E A N P O P U L A T I O N I N S T R I K I N G D I S T A N C E

L E V E R S T O A C H I E V E

2 0 2 0 T A R G E T

2011 2012 2013 2014 2015 2016 2020

95

• Additional warehouses (hubs and satellites)

• Partner program / marketplace models

• Offline integration

Same day (LH1 < 2hrs), in % Next day (LH1 < 8hrs), in % 2nd day (LH1 < 16hrs), in %

go-live

Brieslang

go-live

Erfurt

go-live

M’gladbach

go-live

Stradella

go-live

Lahr

(1) LH = l ine-haul.

12

Benefits:

• Brands can leverage our infrastructure

• Happy customers receive one single parcel

(from multiple brands)

• Cost efficient solution to consolidate orders

Pilots:

• Ongoing: Fulfillment by Zalando for MVMNT

• H1/16: Fulfillment by Zalando for zlabels

F U L F I L L M E N T B Y Z A L A N D O :

I N V E S T I N G I N T O C A P A B I L I T I E S A N D R U N N I N G F I R S T P I L O T S

3 . L A T E S T I N N O V A T I O N S

14

L A T E S T I N N O V A T I O N S

S A M E D A Y D E L I V E R Y R E T U R N S P I C K - U P S U R P R I S E & D E L I G H T

15

S A M E D A Y D E L I V E R Y W I L L B E C O M E

T H E N E W S T A N D A R D I N M E T R O P O L I T A N A R E A S

SAME DAY IS NOT JUST A BUZZ WORD ANYMORE ZALANDO: SAME DAY PILOT AREAS

Berlin

Köln

Düsseldorf

Essen

“Royal mail expands same-day

parcel delivery”

Nov. 2015

“Post NL launches same-day

delivery service”

Nov. 2015

“Morgen ist schon zu spät”

Oct. 2015

“Amazon launches same-day

delivery in Germany”

Oct. 2015

16

100%

59%

P R E L I M I N A R Y O B S E R V A T I O N S F R O M

S A M E D A Y D E L I V E R Y T R I A L S

41% FASTER RE-ORDER IF PREVIOUS ORDER

WAS DELIVERED SAME DAY

POTENTIAL TO DECREASE SDD1 COSTS

TO LEVELS FOR NATIONAL EXPRESS

… previous order

was not a SDD

order

… previous order

was a SDD order

Avg. time between two orders if…

0 100 200 300 400 500 600

Same Day

National Express

EUR/order

Orders/day

Example Berlin: ~250

SDD orders per day

(silent upgrades)

(1) SDD = Same Day Delivery.

41%

17

R E T U R N I N G W I T H Z A L A N D O A S S I M P L E A S 1 - 2 - 3 !

1.

2.

3.

O N L I N E / I N - A P P

R E T U R N S E R V I C E

P R E P A R E R E T U R N

A N D S T I C K A R O U N D

H A P P Y C U S T O M E R

picture

18

… A N D C U S T O M E R S A R E W I L L I N G

T O P A Y F O R I T

F I R S T T E S T C A S E S I M P L E M E N T E D W I T H P R O M I S I N G C U S T O M E R F E E D B A C K

O N G O I N G : L O N G - T E R M T E S T T O E S T I M A T E I M P A C T O N C L V

S E R V I C E I S P E R C E I V E D

A S V A L U E A D D I N G …

80% satisfied

20%

neutral/

less

satisfied

0-2 EUR 67%

CLV = customer l i fetime value.

>2 EUR 33%

19

SURPRISE & DELIGHT AT ZALANDO

SORRY THANKS

No matter how hard we try, sometimes things go wrong.

That is when we apologize and try to make it up

to customers by sending a little surprise.

„Dear Zalando Team, many many thanks for

this fantastic surprise! You are the best!!!!“

Facebook Post

It is not just about apologizing - we aim to show

our customers that we care. That‘s why we seize

opportunities to surprise our customers and say thanks.

“What a great surprise, just because my parcel

didn’t arrive today! You made my day, thank

you Zalando!”

Facebook Post

Turning a negative experience into good one and

thereby increasing satisfaction and retention

20

Q U E S T I O N S ?

21

These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities of Zal ando SE (together with its subsidiaries, the

“Company”) in any jurisdiction. The distribution of this presentation may be restricted by law in certain jurisdictions and p ersons 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 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 no t 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 Com pany or cited from third party

sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly f rom 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 l egal proceedings and actions and the

Group’s ability to achieve operational synergies from past or future acquisitions. The Company does not guarantee that the as sumptions 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 an y 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. Conseq uently, the Company does not

undertake any obligation to review, update or confirm investors' expectations or estimates or to release publicly any revisio ns 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 s hould 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 o r warranty (express or implied) is made as

to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained h erein, and no liability whatsoever is

accepted as to any errors, omissions or misstatements contained herein.

D I S C L A I M E R

i n v e s t o r . r e l a t i o n s @ z a l a n d o . d e

2 2 - 0 3 - 2 0 1 6

I N V E S T O R R E L A T I O N S